MEMORANDUM FOR: Deputy Director for Plans
Developmentan to the Stale Technical University, Santiago, Chile
1. The attached message which you brought to our attention notes that the Inter-American Development Bank (IDB)hasoan to the State Technical Universityantiago, Chile, in the amount ofillion from Canadian funds on deposit in the bank.. director of tho bank agreed to the providing of thefunds to the UTE provided that. dollar funds were included in the loan.
Station Santiago messages ofndeptember contain information that during the0 the Chilean Communist Party (PCCh) media operations chief and Congressional Deputy Jorge INZUNZA continued his successful maneuvers to bring Chilean mass communications media under control of the Socialist-Communist "Popular Unity" (UP) movement.
The PCCh has instructed the PCCh-conlrolIed StateUniversity (UTE) radio station to drop all pretenses of being
a cultural and educational station and to concentrate on theof UP and PCCh news and political commentaries. Ironically, the UTK radio station is financed by the Government of Chile and, as* noted above, the UTE is the beneficiary of loans' from the IDB. Armed PCCh guards are patrolling the UTE campus where the radio station and publishing facilities have become strident propaganda mechanisms insisting on the election of ALLENDE on Z4 October.
Approved, for Release '
4. You may wish to bring the information contained in paragraphs one and three above, to the attention of Dr. Kissinger to determine If the United States Government can intercede to prevent IDB funds being loanedommunist university.
William V. Broe Chief
Western Hemisphere DivisionOriginal document.