389. Memorandum From the Assistant Secretary of State for Inter-American Affairs (Holland) to the Special Assistant in the Bureau of Inter-American Affairs (King)1

SUBJECT

  • Documentation of Communists Attempt to Keep Chilean Economy from Improving

If the Chilean economic situation is improved substantially by the programs recommended by the Klein–Saks’ mission and undertaken by the Government, we are going to have an excellent anti-Communist weapon.

From the beginning of the Klein–Saks’ study the Communists have constantly attacked both the mission and those government officials who cooperated with it.

The result will be that a perfectly documented case history can be made to prove that the Communists fight all government moves which will actually strengthen the local economy. The Communists work resourcefully and with energy to weaken the economy of every country.

USIA … should immediately begin documenting the propaganda exploitation of what appears to be rather well along in Chile. Please keep me advised on what you do on this.

  1. Source: Department of State, ARA Files: Lot 58 D 749, Chile 1956. Secret.