Context of 'September 11, 1973: CIA Policies in Chile Lead to Assassination of Allende, Rise of Pinochet'

The CIA spends $3 million to influence the elections in order to prevent Salvador Allende from being elected as president of Chile. [US Department of State, 1968; US Congress, 12/18/1975, pp. 148-160; Blum, 1995]

During the Chilean election campaign, when it becomes clear that leftist candidate Salvador Allende will win (see September 4, 1970), the US ambassador to Chile, Edward Korry, says: “Not a [US] nut or bolt will be allowed to reach Chile under Allende. Once Allende comes to power we will do all within our power to condemn Chile and Chileans to utmost deprivation and poverty.” Weeks later, President Nixon declares his intention to “smash” that “son of a b_tch Allende” (see September 11, 1973). [Hunt, 9/1/2009, pp. 7]

Socialist Salvador Allende is elected as president, despite extensive CIA efforts (mainly through propaganda) to prevent him from winning (see 1964). He pursues a leftist program, establishing diplomatic relations with Cuba and moving Chile closer to communist countries such as China, North Korea and North Vietnam. He also nationalizes various industries, several of which have significant US business interests. The US responds by continuing support of the opposition and working systematically to weaken Chile’s economy. [US Congress, 12/18/1975, pp. 148-160; Keen, 1992, pp. 332-336; Federation of American Scientists, 9/11/2998]

CIA covert policies (at an expense of $8 million from 1970-73) lead to a coup d’etat in which Allende is killed and Augusto Pinochet brought to power. [Kornbluh, n.d.; Time, 9/24/1973; US Congress, 12/4/1975, pp. 148-160; BBC, 11/14/2000] After Allende’s assassination, US Secretary of State Henry Kissinger will explain to Congress, “The issues are much too important for the Chilean voters to be left to decide for themselves.” [Hunt, 9/1/2009, pp. 8]

Sergio De Castro, leader of the Chicago University movement in Chile and the head author of “The Brick,” is made a chief economic adviser to Augusto Pinochet’s authoritarian regime almost immediately after the overthrow of the democratically elected government of Salvador Allende. During the first one and a half years of Pinochet’s rule, Chile is subject to a large array of neoliberal economic reforms. These include the privatization of state-owned firms, financial deregulation, removal of import tariffs, a ten percent cut in government spending (with the notable exception of military spending), and the termination of price controls. As a result, the cost of basic goods will skyrocket while domestic industries are put out of business by imported goods. Orlando Sáenz, who originally recruited the Chicago School graduates to redesign the Chilean economy (see September 1971-September 11, 1973), will declare the consequences to be “one of the greatest failures of our economic history.” [Klein, 2007, pp. 79-80]