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U.S. involvement in Chile

Their operation consisted of supporting opposition to the Popular Unity party with money for campaigning (Blum 56). The CIA officers failed their mission. U.S. Ambassador Edward Korry described the new Allende administration in a memo to Washington, "There is a graveyard smell to Chile, the fumes of a democracy in decomposition". Korry, among other leaders, feared the new communist government (Weiner 24). This fear eventually led to the shipment of more CIA officers to Chile. Richard Helms, director of the CIA, met with President Nixon and Secretary of State Kissinger on September 16, 1970, to establish a new mission to remove Allende. Helms was also informed that he should be concerned with the risks involved, that there should be no involvement of the embassy and that the CIA would have an initial budget of $10,000,000, with more funds supplied if needed. He was informed that the CIA should use this money to "make the economy scream" (U.S. Senate). The CIA was also given instructions to take any necessary means to save Chile from the communist administration (U.S. Senate). The U.S. feared Allende's social agenda, which consisted of two primary objectives: first, to establish a dominant social, or state owned, economy. This type of economy would allow firms and businesses to be owned by the Chilean government, a direct contrast to the U.S. capitalist economy (Blum 78). The government ownership of businesses and firms would allow Allende to complete his second objective, to establish fair wages and guarantee fair working conditions (Falcoff 28). .
             While the CIA began their mission, Allende and his administration began to establish their governmental policies. Allende's view was that foreign and domestic capitalists were exploiting Chile. Therefore, the government moved to socialize the economy. The socialization process allowed for the Chilean government to seize all copper mines, foreign firms, industrial factories, banks and large estates.


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