government’snewpolicyofexpropriationwithout compensationdesignedto
discourageanyprivateinvestment,withgovernment‐fueledinflationreachinga
levelofsome350percent(onthedayofAllende’sdeath)anddestroyingthe
middleclass,andwithdefaultonitsinternationaldebtrepaymentsin1971,the
credit‐worthinessofChilewouldhavedroppeddrasticallybetween1970and
1973whateverpolicytheUnitedStatespursuedin internationallending
institutions.Itwouldhavebeenanimprudentfinancialinstitution,nationalor
international,thatextendedsubstantialcredittosomeonewho,inhis1970
campaigndeclaration(“ThePopularGovernment’sFirstFortyMeasures”)had
pledgedto“renegethecommitmentswiththeInternationalMonetaryFund,”or
whoinhis1970PopularUnityprogramhadproclaimedtheintentionof
“expropriatingimperialistcapitaland…increasing ourcapacitytoselffinanceour
activities”andwhohadregardedit“absolute lynecessarytoreview,denounceor
renounce,asbefitseachcase,thosetreatiesoragreementswhichinvolve
commitmentslimitingoursovereignty,and,inparticular,trea tiesofreciprocal
assistance,pactsofmutualaidorotherpactswhichChilesignedwiththeU.S.A.”
AsforbilateralUnitedStatesaidprograms,grantaid,ashasbeen
mentioned,wasterminatedin1968whileFreiwasstillPresident.Theloan
programshaddroppedtosome$40millionin1969and$70millionin1970.Even
underAllendetheexceptionforhumanitarianprogramsresultedinauthorization
of$16.8millioninFoodforPeaceprograms,some$250,000inspecialdisaster
relief,andfavorableUSactiononInter‐AmericanDevelopmentBankloansof
$11.5milliontotwoChileanuniversitiesinJanuaryof1971.AndthePeaceCorps
remained.WhileAllendewasinoffice,theUnitedStatesalsoauthorizedover$42
millioninmilitaryassistance,agreedtothereschedulingofaround$250millionof
Chile’sdebt,participatedin$82.3millionIMFloans,andhonoredpreviousaid
commitmentamountingtosome$25million.ThusChileunderAllenderemained
oneofthelargestrecipientsofofficialAmericanaidpercapitainLatinAmerica.
Altogether,Allendereceivednewcreditsofnearly$950millionfromallsources,
includingwellover$600millionfromCommunistsources.
15
Painfulasitmaybe
toadmitforthosewhoseeksomeextraneousreasonforMarxist‐managed
economicdisasters,itwasnotAmericaneconomicpressurebutAllende’sown
policiesthatbroughthimdown.
Allendedidnotwaitlongtoimplementhisprogram.OnNovember12he
announcedreestablishmentofdiplomaticrelationswithCuba,incontraventionof