United States Intervention in Chile - Allende Presidency

Allende Presidency

Salvador Allende ran again in the 1970 presidential election, winning a narrow plurality (near 37%). U.S. president Richard Nixon stated his fear that Chile could become "another Cuba", and the U.S. cut off most of its foreign aid to Chile and supported Allende's opponents in Chile during his presidency, intending to encourage Allende's resignation, his overthrow, or his defeat in the impending election of 1976. To this end, the Nixon administration clandestinely funded independent and non-state media and labor unions.

The U.S. government had two approaches to fighting Marxism as represented by Allende. "Track I" was a State Department initiative designed to thwart Allende by subverting Chilean elected officials within the bounds of the Chilean constitution and excluded the CIA. Track I expanded to encompass a number of policies whose ultimate goal was to create the conditions that would encourage a coup. "Track II" was a CIA operation overseen by Kissinger and CIA’s director of covert operations, Thomas Karamessine. "Track II" excluded the State Department and Department of Defense. The goal of Track II was to find and support Chilean military officers that would support a coup.

Immediately after the Allende government came into office, the U.S. sought to place pressure on the Allende government to prevent its consolidation and limit its ability to implement policies contrary to U.S. and hemispheric interests, such as Allende's total nationalization of several U.S. corporations and the copper industry. Nixon directed that no new bilateral economic aid commitments be undertaken with the government of Chile.

The U.S. provided humanitarian aid to Chile in addition to forgiving old loans valued at $200 million from 1971-2. The U.S. did not invoke the Hickenlooper Amendment which would have required an immediate cut-off of U.S. aid due to Allende's nationalizations. Allende also received new sources of credit that was valued between $600 million and $950 million in 1972 and $547 million by June 1973. The International Monetary Fund also loaned $100 million to Chile during the Allende years.