WEEKLY REVIEW - CHILE: MORE HEATED POLITICS

Created: 7/21/1972

OCR scan of the original document, errors are possible

Trie political temperature, rising (or several weeks, is high. The government's response to the challenge trom the opposition congress is picking up steam, and the electoral victory ot thecandidate in Coquimbo last weekend boosted morale on Allende's team. The President himself has publicly criticized the legislature and the judiciary, claiming both have actedagainst hts government.

Taking to the streets last week to defend the government, followers of the Popular Unity parties were harangued by suspended Interior Minister Del Canto and later disrupted theof congress and the Supreme Court. Larger demonstrations have been promised. Allende Is resisting attempts by the opposition to limit his use of the considerable power of the Chilean executive; he has counter-attacked with constitutional argument and intimidation. Altende has been portraying himself as thaof the constitution against an irresponsibleituation reducing his reluctance to make use of extra-legal means of pressure on occasion.

The momentum of the government's counter-offensive was sustained by the victory of the Popular Unity candidate in Coquimbo. While the victory in this generally leftist province was anticipated and the specific Implications are still being debated, the psychological importance of the triumph remains. Adding to the government's optimism, the results of the labor confederation elections held last May were finally announced. The Communists and Socialists were In first and second place. The Christian Democrats believe they actually won the second spot, but Socialist and Communist vote counters apparentlytheir mutual animosities to juggle theparty Into third place.

urning to thellende has eliminated legal alternatives to the existing election federations, causingproblems for the Christian Democrats. They have been forced, reluctantly.lose but fragile association with theituation already being exploited by the governmentsquabbling between the Nationals andDemocrats in Coquimbo, especially the youth brigades,imiting factor on thecampaign. The Socialists are alsowith the federation concept, but have less trouble with it than the Christian Democrats.

THE GOVERNMENT'S RESPONSE TO THE CHALLENGE FROM THE OPPOSITION CONGRESS IS PICKING UP STEAM...

The Socialist Party leader recently pointedin elections heldhere onlywere presented, the governmentalwaysajority, but has at leasttoercent. This is ten percent moreleft was able to obtain priorndparties hope to be able to garnersupport toefiniteuccess Is by nomeans assuredgovernment pop-

ularity is declining, and maym ofercent by election time.

aid from moscow

. Moscow's extension of significant new long-term credits to Santiagoig boost to the Allende government and the hard-pressed Chilean economy. Ithorough evaluation by the USSR of the political and economic situation In Chile. The credits will be used for the purchase of machinery and equipment and for projectAdditional sums will be forthcoming from the USSR and the East European countries to finance Chile's current trade. Moscow had already givenilllon short-term, hard-currency, credit and two long-term creditsillion for project assurance and machinery exports.'

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