• Short Summary

    Contrary to the prophets of doom, the Chilean economy and the way of life of its people have not crumpled during the first seven months under Marxist President Salvador Allende.

  • Description

    GV & SVs People dance and others watch (12 shots)

    SV & GV PAN Market scenes (4 shots)

    CU Money changing hands (4 shots)

    CU & SV Money being printed and minted (8 shots)

    SV People shopping (5 shots)

    GV & CU People buy fruit (4 shots)

    SV INT Allende speaks (SOUND) as members listen (4 shots)

    GV EXT Allende meets people in street (2 shots)

    Initials BB/1638 HK/PN/BB/1659

    Script is copyright Reuters Limited. All rights reserved

    Background: Contrary to the prophets of doom, the Chilean economy and the way of life of its people have not crumpled during the first seven months under Marxist President Salvador Allende. However, according to some economists, the danger signs are appearing.

    The government's financial policy has sent the nation into the market place and Allende's popularity to an all-time high. In a brief period the President has frozen prices, increased wages almost 50 per cent and significantly, has had government printing presses working overtime to double the amount of money in circulation.

    Now, according to the economists, Allende must now find a way to finance Chile's new prosperity. Allende has been looking for credits in both east and west Europe. Even if he should succeed, the doubting economists feel that the only salvation for Chile's economy will be increased production in the newly nationalised industries.

    SYNOPSIS: Santiago's carefree life-style, fine wine and a reputation for beautiful women have made it a long time favourite of Latin American visitors. Seven months under Marxist President Salvador Allende haven't changed Chile's light-heartedness. For the poor, Allende's economics mean a chance to eat better and buy some new clothes. Obviously, the policy leading to a dramatic redistribution of the wealth. But problems are already appearing. Stocks are being depleted...and some shortages have appeared. Chile imports much of its food. With much higher consumption now, the question must be asked...where is the money to pay for it going to come from.

    The government has frozen prices and raised wages up to fifty percent. Members of the large middle class are enjoying a new-found prosperity. The well-to-do are spending with even more abandon than usual. For the rich the motto is spend it while you can...It may not be worth anything tomorrow. The printing press is the source of Chile's apparent new wealth. Allende's government has doubled the amount of money in circulation. With fixed prices, higher wages and uncertainty about the future, Chile has gone on a national spending spree.

    Chile's president has accustomed the poor to a better life. Now he's got to find a way to finance the higher living standard. He has delegation in East and West Europe looking for foreign credits But basically the only real solution is higher productivity for Chilean workers. Few western economists believe production can be increased enough.

    For the present at least. Marxist Allenda is enjoying his presidency. His popularity has risen since the elections. Few of the world's heads of state walk the streets with such easy openness. But, say some ??? if the economy sours, Allenda find this such an easy country govern.

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    Reuters - Source to be Verified
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