Monday, Jan. 24, 1972

Allende's Troubles

"To those who say the days of Chile's popular government are numbered, I say that they can swallow their tongues." So recently declared Chilean President Salvador Allende Gossens, the first Marxist head of state to win office through a free election. Nonetheless, wagging tongues inside and out of Chile continue to predict doom for Allende's 14-month-old Popular Unity coalition. Their predictions may be premature, but Chile's economic problems are steadily worsening, and the opposition forces of the Christian Democrats and the rightist National Party are increasing their attacks on Allende, whose popularity has fallen in recent weeks.

Currently, the opposition parties, which control a substantial majority in Chile's Chamber of Deputies, are trying to embarrass Allende by impeaching his most trusted Cabinet member, Socialist Interior Minister Jose Toha. The move was transparently political, since even opposition members concede that Toha is an effective and capable minister. He was formally accused by Christian Democratic Deputies and Nationalists, however, of having failed to control armed guerrilla groups of both the right and the left --particularly those leftists who had helped peasants make unauthorized land seizures--and a host of other, petty "crimes."

Two weeks ago, the Chamber of Deputies approved the impeachment proceedings, thereby requiring the Senate--in which the opposition has a majority of one--to sit in judgment on Toha. Under the Chilean constitution, a Cabinet officer faced with impeachment proceedings is automatically suspended from his post. Furious, Allende challenged the Chamber by making Toha the acting Defense Minister and giving his old portfolio to Defense Minister Alejandro Rios Valdivia, a moderate leftist. The opposition immediately complained that Allende was illegally circumventing the constitution.

On the grounds that the present Congress does not represent the will of the people, Allende has threatened to hold a national plebiscite to replace the Chamber and the Senate with a unicameral "People's Assembly." His proposals, if put into effect, would emphasize the power of the President and downgrade the legislature. The opposition, meanwhile, has introduced a constitutional amendment --which stands a good chance of passage--that would restrain the President's ability to nationalize industry without congressional approval.

Allende, as it happens, may well have more trouble economically than politically. Chile's agricultural production has plummeted, partly because of illegal land seizures by wandering bands of armed peasants. Chile's net capital reserves dropped from $343 million in 1970 to $45 million at the end of 1971. The explanation was a disastrous fall in world-market prices for copper, Chile's main export, and loss of credit as Allende has nationalized foreign-owned companies.

Allende has unilaterally suspended Chile's payment on foreign debts and last week formally asked foreign banks and governments for a three-year moratorium on the country's obligations, which now total $3.3 billion. Chile's international creditors, including the U.S., have agreed to meet in Paris next month to discuss the moratorium.

Meanwhile, the people are grumbling. One clue to Allende's future may be found in the results of two bitterly contested provincial elections held last Sunday to pick a federal Deputy and a Senator. Although the Popular Unity coalition was narrowly favored to win, the loss of either contest would indicate darker days ahead for Allende and his Andean version of Marxist socialism.

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