Chile: the balanced view : a recopilation of articles about the Allende years and after

3. Statement by Dr. WALTER J. SEDWITZ, CIAP' s Executive Secretary. Thank you, Mr. Presiden!. I would liketo join yourword;s'ofcongratulatton to the Chilean Delegation, specially to Mr. the Minister, for the brillíant. detailed and very disengaged exposition he made this afternoon. In the course of the following days I think we shall have the opportunity to amply exchange impressions, and to considero in detail the various themes which you have mentioned. . Nevertheless, Mr. President, 1 would like to refer to some aspects and make some very short comments, related to the situation which Mr. the Minister so brilliantly exposed. For us, Mr. President, this isthe'eighth meEHingofCIAP's Subcomittee regarding Chile,.· in the course.of the last eight (8) years. With great interest we have followed the information regarding ChHe's economic progress and its needs of international c00peration. I believe it is no exaggeration if we say that this new examination of Chile maybe comprises more importance than aRy other study per country we have made in the past. In effect, for the first . time this Committee and the Secretary's Office notonly face the usual problem as to how the economic development of the country could be hastened, but rather face a grave, serious problem of national reconstruction. An emergency. . The point is not only to consider monetary policy, fiscal policy and the policy in fhe different sectors of the economy, but also to consider how we could promote an econQri1ic recQvery of a negative rate of growth -this year less than 5 % to a positive rate ~hich would permit to create the basis of a stronger development In the fUture. As always, Mr. President, the CIAP Secretary's Office has elaborated a working document for this meeting, which Qovers all the sectors of the economy. In said document, an analysis of the present situation is being presented, the prospects, progr<;lms and necessities of international cooperation. It is a technical, not a political document. It is an objective document and if there would exist discrepancies between the document prepa– red by the Secretary's Office and the position of the Government, these would regard only details, emphasis or interpretation offigures, but there do not existfundamental discrepan– cies which could affect the country's pplicy ór the diagnosis Mr. the Minister has pointed out. . To this respect, we wish to thank the Government for the collaboration we obtained , when our mission'was in Chile, not long ago, and the ~ffability with which we received the necessary information, to prepare our report, taking all the necessary time for conversation with us regarding structure, necessities and perspectives which the Chilean economy has: At the same time, I wish to thank the financial institutions which were coincident with us during the mentioned mission, specially to the Internatiorial Monetary Fund, who have also prepared their report at the same time we have. . I wish to point out, Mr. President, that there is a factto which its due importance often is not being givEm, which is that the new Government, when assuming power in the middle of September last, found a bankrupt economy, a caotic financial situation and a deplorable social status. As Mr. the Minister already explained. the country was in a state of superinflation 01 eight hundred per cent, wílh the danger of an enUre market collapse; with an investment coefficient which had dropped to zero; with a diminution of productivity never seen; with a virtual stop of the system of production and availability of properties; and with an external debt which reached the enormous quantity of three thousand five hundred million dollars (US$ 3,500,000,000); at the same time, the international reserves were exhausted and the . international loan situation of the country was damaged. 215