CHILE LIGHTS THE FREEDOM TORCH

FOREWORD

September 11th 1975, IInd Anniversary of the Nationill Liberation, will be forever remembered as the day when Chile lighted the Freedcnm Torch. Early i n the morning, our cities dawned adorned with flags and with the soul jull of patriotic joy. Solemn religious services in the m e m q of those that perished fighting for the Fatherland, were held i n the principal military garrisons of the country. In Santiago, t he Institutions of t he National Defense met, presided by their Commanders in Chief and General ~ i r e h o r in order to take part in the religious service s that was heZd by the Castrensial Vicar General, Monsignor Francis Xavier Gillmore. The principal yard of the "Bernardo O'Higgins" Military Academy, saw the arrival for a common prayer, of the sume four men that, two years before, had addressed from there to the country to announce the Constitution of a Junta of Government to redeem Chile of the coming marxist tyranny. Thousand of military and civilian m e n that were w i t h them, prayed $o God for Chile, its m a 7 - t ~ ~ ~ and the future destiny of a people full of legitimate hopes. Near midday, His xcellency, the President of the Republic, the General oj the Army, Mr. Augusto Pinochet Ugarte, addressed to the Nation his Presidential Message, whose complete text is i the following n pages.

This solemn session, verified in the Plenary Room of the Diego Portales Palace, was presided b y the Honorable Junta of G w e r n m e n t in full, and was honored by the assistance of His Excellency, the Vice-President of the Republic of Guatemah. Forming the audience were members of the Diplomatic Corps, headed b y th.e Nuncio of His Holiness the Pope, the highest civilMn, military and clergy authorities of Chile and representatives of al1 the living forces of the country that replenished t he ample enclosure. T h e President Pinochet's address, overflowed t h e frames of a computation of the work done b y the Government, projecting itself w i t h historical trascendence, as a solid doctrinary definition of the Regime. Amplifying the Dechration of Principles of the Government, the Chief of t h e State penetrated in t h e conceptual marrow that infuses our foreign, economical and interna1 policies. He explored the intense content of liberty, the Human Rights, the authority and the sense of the Fatherland at the light of the new challenges of today's realities. T h e Government of Chile placed' itself before the world, in a galhnt and original way, w i t h understanding of the future. The scheme of the governmental realizations w p , in this way, inserted in the frame of a great historical task, whose more important expression is the new institutionality that is being born in Chile smd in whose connection, the Message held important announcements. In the morning the voice of the ~ o v e r n m e n t resounded through the President of the Republic. And, in the afternoon, the entire population backed his words, that involved a faith and un attitude both personal and collective. B y six o'clock in the afternoon, hundreds of thousanas of people of al1 kind went, w i t h particular fervour and joy, t o the Bulnes Square, that in the future

will be known as t h c Plaza de 110s Heroes, or Hero's, Square. There, in a giant bonfire, the Chief of the State will -at sunset- proceed t o illuminate the world and the future history, lighting t h e Freedom Torch. T h e crowd became enormous and incalculable. Filling the square to capacity and also t h e adjoing streets. loosing itself of sight along the Alamedu Bernardo OJHiggins, Bulnes Avenue and Constitution's Square. W h e n the climax came, His Excellency the President of the Republic and the other members of the Honorable Junta of Government, whose arrival st the place was greeted w i t h an endless ovation, they took their places on a stage, presided b y a big geographic chart of our country that bore t h e following brief inscription: "Chile will be a great nation". While hundreds of thousands of torches were lit everywhere, giving t o the night un unforgetable appearence, t h e national flag was raised in a high mast that overpowered the center of the square, next t o the bonfire. Next, President Pinochet addressed to al1 the Chilelans a brief harangue whose complete t e x t is included also in this publication. A little before it was finished, four anonimous civilians, representing the women, the youth, the field workers and t h e city workers, lit four torches that were given t o a cadet of each b-ranch of the Armed Forces and Carabineros. The cadets took the torches to the main stage and delivered t h e m to Augusto Pinochet, General of the Army; to Jos Toribio Merino, Admira1 of t h e Navy; to Gustavo Leigh, General of the Air Force, and t o Csar Mendoza, General Director of Carabineros. Simultaneously, t h e four m e m bers of t h e Honorable Junta of Government, that twa years before had taken the decision t o liberate Chile. renewed it -this time before the entire nationlighting t h e Freedom Torch, symbol of the Fatherland.

and i n face of which was renewed the oath to become "the grave of the free or t h e sanctuary against oppression". T h e President of the Republic and all t h e m e m bers of the Junta of Government joined hands w i t h t h e cadets in order t o illuminate the eterna1 fire of Libert y , eloquent attestation of the vocation of the future of a young people. Again, the National A n t h e m was heard w i t h irrestricted emotion t o close one of the most significative instantes of t h e history of the Fatherland. W h a t was the reason that had congregated that crowd there? I t was not the hope of un advantage, because nothing material or contigous was offered t o them. I t was not also the hate against something, because they did not hear but mies of faith in Chile. I t was not a coming election or the fear against sornething nor the blindness of a rnyth. I t was the spiritual and patriotic conviction of a mature people. Of a Nation that knew how was t o be i n the verge of loosing its identity, its liberties, its future and that had recuperated t h e m i n un historical struggle, that the time has inereased to the size of un epopee. I t was the stout answer of a proud and sovereign people that dissembled before the whole world one of the biggest forgeries of modern history: the campaing of the international comunism to misrepresent the t r u t h about Chile i n face of the wide and long of the entire world. Equally impressing meetings had place, at the sume time, in al1 the provinces of the country. Santiago culminated its celebrations w i t h un imprountu parade that, in the midst of indescribable euphoria, passed in front of the stairs of the Diego Portales Palace, where the Chief of State and the members of t h e Junta of Govemment, accompanied b y their wives, received, during t w o and a half hours. the acclamations of

a grateful people that had seen the rebirth of its morc pure patriotical fiber. * O n September 30th, at the end of the ~ o n t h of the Fatherland, the Freedom Torch was transferred. in a sober ceremony, t o t h e Santa Luca Hill. originally called Hueln, where the Spanish conqueror Pedro de Valdivia founded Santiago on February the 12th, 1541. There it will remain forever, as a symbol of a country that wants t o be truthful to its origins, to the very root of its nationality, because from t h e m gushes a history full of ancient glories, of present hopes ard tasks for the years t o come.

ADDRESS DELIVERED BY HIS EXCELLENCY THE PRESIDENT OF THE REPUBLIC ARMY GENERAL AUGUSTO PINOCHET UGARTE ON THE OCCASION OF THE GOVERNMENT'S SECOND ANNIVERSARY

SANTIAGO. SEPTEMBER 11TH 1975

LADIES AND GENTLEMEN:

Chile conmemorates today the recent achievement of its National Liberation. Barely two years ago, soinbre misgivings filled the air, and the general feeling of anguish knew no bounds. Chilean women instinctively sensed the destruction of their homes, on realizing the extent t o which violence had undermined their chi.ldrenls most elemental safety. Our youth rebelled against the sinister aims and aliend ideas of a minority who endeavoured t o control their consciences and curtail their freedom. When it became evident that the country was in a state of chaos, workmen of al1 kinds and conditions protested by putting an indefinite stop t o their activities. In this atmosphere, an unsuccessful and corrupt Government forteited its last traces of legitimacy by neglecting its functions as the established authority, and seeking to divide Chileans by means of systematically fomented hatred, prepared a Civil War which would have inflicted a death blow to our beloved Nation. Yet the proud indomitable Chilean spirit rose forth with renewed vigour. From the bottom of their souls our people demanded their liberation, and on a morning such as this, our Armed Forces and Carabineros, in

complete unison, and in fact representing the last reserve of a juridically organized State, took over the Government of the Natlon. Our flag once again waved proudly dignified and victorious, and the date of September 11th took its place arnongst those of the rnost glorious epics of our Independence. I shall outline today the task whic'h our Governrnent has undertaken. It has not been an easy path to follow, but on this second anniversary we face a Nation who lives in peace, order and respect, after three years of chaos and Marxist-Leninist violence. A Nation which threads its way amidst rnany sturnbling blocks, but convinced that it advances towards a definite goal; a Nation who daily becomes more united, with renewed confidenqe in its own destiny. . What a contrast this is to the desolate'picture of a world universally subrnerged in spiritual oppression. moral confusion and physical violence! For this reason, my words this morning are those of a President of the Republic who, in spite of fully assessing the difficult situation we still confront: can point out with satisfaction the ground we have already covered, and invite the Chilean people to continue treading the path of progress in order and justice.

EXTERNAL FRONT

In the understanding that lnternational Politics constitute the highest form of externalizing our right to Freedom, the Government which I preside tends not only to preserve our integrity as a State, but also t o bear witness before the international community of the road which the people of our country have freely chosen. Chile has therefore re-established and will continue t o develop a nationalistic, dynamic and pragmatic Foreign Policy. by means of which it defends its legitimate political sovereignty, its cultural tradition and Ihistorical identity, its natural resources and its condition of developing country. sharing this strategy with the majority of nations who find themselves in similar circumstances. In order to effectively further these airns. our Government proposes t o duly recover the position which Chile deserves in the concert of nations, by spreading its real image: that of a united aiid orderly country who not only feels responsible for its interna1 progress, but also wishes t o contribute to universal development and maintenance of peace and security al1 over the world. Thus, as the Government's Declaration of Principies points out, it is Chile's desire to be on friendly terms

with al1 the countries whose Governments, like ours. respect the principies of international law. In this aspect I must emphasize the progressive expansion of our diplomatic relations, whose present range and tempo greatly exceed past achievements. This has enriched our international relationships and has laid down the foundations for a better understanding of our country, in spite of the doubled efforts of our adversaries. Specifically, the Government proposes to strengthen the existing friendly ties which bind Chile to its neighbouring countries. It is therefore with great satisfaction that I can point out the renewal of our traditional bonds of friendship with Bolivia, after these had been suspended for thirteen years. Since my meeting at Charaa with the President of Bolivia, we have expressed our mutual resolution of studying and negotiating i n a frank and cordial manner, the problems which affect the full development of Bolivia due t o is mediterranean condition, sincerely trusting that we shall be able to find a just and lasting solution to them. The favourable prospects of our direct contact make the intervention of third parties unnecessary and even prejudicial t o matters pertaining solely to both our sovereign States. The interview between Madam President of Argentina and myself provided an opportunity to strengthen even more the excellent ties of friendship with that Nation, as well as to ratify significant agreements on commercial exchange and the development of means of communications. On the other hand, nothing has been able to alter our deep and friendly links with the Republic of Per. The reciprocal respect between our Governments, as well as the friendship of our peoples, have enabled Chile and Per to overcome the deliberate intents of Inter-

national Communism to produce friction entirely lacking in grounds. By accentuating o i r contacts with distinguished Heads of State, among whom I must make special mention of the visit which H. E. the President of Paraguay paid to our country, we have increased the sense of mutual unclerstanding between countries of the South Cone, of the Andean Group and of America in general. Furthermore, we have emphasized the need of providing the historical task of Latin America integration with a wider dimension, which comprises not only the possibilities of complementing each other economically, but also the consolidation of the Region's own personality. We are thus prepared to add our own efforts to those of al1 the States of the Region in order to jointly resolve our common problems. Thanks to the renewed declarations of South Arnerican Statesmen in favour of peace, we feel that the work undertaken by the members of the Second Conference for Limitation of Armament of the Andean Group, which with our enthusiastic approval took place in Santiago. should bear promising fruit. Always within the field of strict adherence to International Law, and with the desire to ensure a peaceful co-existence in mutual respect, essential equality and integral security for al1 the American people, we have participated in important reforms of the InterAmerican System, and while striving for the permanence of clear principles and efficient institutions, we have opposed those excessive innovations which might weaken the normal functioning of the Inter-America'n Treaty for mutual Assistance and the Charter of the Organization of American States. With regard to the problems of the Middle East, Chile, with a strict sense of justice, has adopted a

realistic and constructive attitude, re-affirming the fulfilment of the United Nations Resolutions for peace, specially number 242 of the Security Council, and at the same time both recognizing the right of the Palestine people to once again have a Iand of their own, and the obligation of respecting the territorial integrity and political independence of al1 the countries of that area. The will to undertake common tasks which has always been latent among countries whose shores face the great Pacific Ocean, has been weakened by the enormous distances involved and by the lack of a collective historical project. However, fully acknowledging the importance of the area, we have inaugurated new air and maritime routes; we have strongly opposed its nuclear contamination; and within the permanent context of our international policies we have spared no efforts to safeguard our national heritage. In a similar manner, the Government has taken measures to preserve our solid rights in the National Antarctic Territory, which has recently been incorporated as the Antarctic Province of the Xllth Region. Acting in accordance with other Member States of the Antarctic Treaty, we have laid the foundations of a policy for the protection of the Antarctic Continent's renewabie and non renewable resources, as well as its ecology and the existing political balance. On the other hand we have endeavoured to expand our friendly relations with the United States of America, as well as with the countries of Western Europe, the Arab countries, Africa, Asia and the Pacific Ocean Islands. Special mention shoufd be made of the Government's Official Mission to Spain, headed by the Member of the Juiita and Commander in Chief of the Navy, Admiral Merino. The fruitful results derived from this visit can already be appreciated in new contacts, and profitable bilateral agreements with our Motherland,

to whom we are so bound spiritually and historically. Although bitter experience has taught us during the past two years that the visit of most foreign observers to our country has merely been a pretext to re-affirm their own preconceived negative conclusions, the world can bear witness as to how our frontiers have been open to al1 those who have wished to become acquainted with our reality, for our Government has vothing to conceal. However, the treatment of the so-called "Chilean Case" in various recent international forums reveals that the latter unfortunately do not take place in the necessary climate of sobriety and justice which would enable its members t o appreciate in an unbiased manner what really occurs here and elsewhere. This fact, added to the discovery of specially prepared subversive plots of interna1 agitation for the occasion, moved the Chilean Government to cancel the visit which the Working Group of the United Nations Human Rights Comittee should have paid Chile last July. I adopted this resolution making use of the faculties pertaining to the President of the Republic in the conduction of the Nation's Foreign Affairs. 1 did so without hesitation, in spite of al1 the difficulties which might arise abroad, in the certainty -and 1 have later verifies this with special emotion- that when it comes to defending our Fatherland's dignity and security, 1 can count not only on the support of the Government. but of the entire Chilean people. In this brief account of the happenings of the past twelve months I cannot help recalling that in my address last year I warned of the dangers which could derive from the artful manner in which Marxist-LeninistCommunism strives to profit from the so-called international policy of "detente" on behalf of its own irnperialistic ends. The recent dramatic events of Indochina, where whole towns have been ravaged and massacred,

demonstrate that it is unpardonably naive to believe in the possibility of friendly dialogue or treaties with Communism. Leninist-Marxisrn is an intrinsically immoral and false doctrine. It has never respected its promises and never will. Its commitments are merely instruments with which to impose dernands or limitations on i t s adversaries, but which Communist themselves do no hesitate t o override as soon as they have gained power. Perhaps because we ourselves selerely suffered, the voice of the President of Chile was one of the very few to be raised in order t o protest vigorously against Red genocide in Vietnam, Cambodia and Laos. Our people know only too well what it means, having been on the verge of a similar experience which was only prevented thanks to the timely intervention of the Military Pronouncement, led by the invisible hand of Divine Providence. We cannot help feeling indignation upon observing the shameful silence of those lnternational Organizations and Governments who proclaim humanistic and democratic values, in the face of events which have shaken the very conscience of civilization. A silence which is al1 the more ignominious corning, as it does. from those who say nothing of Soviet totalitarianism, yet join the infamous carnpaign against Chile, the smsll nation who dared defeat i t in defense of ts liberty. Knowing the spurious origin of the externa1 aggression which endeavours to isolate our country. we are determined to face it without dismay. Chile will on no account accept that any transitory difficulties we may confront. be used by any foreign power, however friendly the appearances may seem, to interfere with our independence. Our Naton stands upright -and always will- when requesting economic aid, and will not accept conditions which damage its dignity as a free and sovereign State.

It is our duty not to compromise, but to make the truth about Chile prevail. The country may rest assured that as a soldier and as President of the Republic, I am honour-bound to be the first to defend the sovereignty of a proud people who have, never, been subdued, and whose safety and preservation are the prime obligations of the Government, the Armed Forces and every good Chilean.

ECONOMIC AND SOCIAL FRONT

One of the most difficult aspects in the task of National Reconstruction, and which directly affects every Chilean, is the economic-social field. For this reason, rather than going into a very detailed and technical account on the matter, I would simply prefer to outline the fundamental objectives pursued by the Government and the steps taken to achieve them. One must not forget that the country's economic and productive systems were so severly damaged, that it i s no exaggeration to compare the conditions to those of a war-ridden Nation. All the symptoms for Hyperinflation were present. The principal cause for this situation was the unprecedented increase in money issued by the Central Bank in order to pay for the fiscal deficit deriving f r m the excessive growth of the Publc Sector. To this we must add the large losses suffered by the approximately 500 state enterprises, either seized, requisitioned or bought by CORFO, and the combination of immorality and inefficiency with which unemployrnent was disguised by means of hiring unproductive political activists, al1 of which was financed by the State. The situation of the productive sector was chaotic. It is enough to recall that dgricultural production had fallen 3O0/0, thus forcing the country to multiply its

food imports by more than four; i n 1973 these ascended to over 600 millions US dollars. Mining production had also been badly damaged, and gross investment reduced by one third, thus jeopardizing any future development. The afore-mentioned situation was produced by the demagogic policy of discouraging domestic production by denying fair prices, which were later paid, at higher costs, to foreign producers for the necessary imports, consequently distorting the proper distribution of productive resouixes. In the field of Foreign Exchange, during the three years of Marxist Government, the country lost 1.O00 million US dollars in reserves, not including an increase of its foreign debt of 800 million US dollars. By September 1973 the country lacked sufficient international reserves for the normal import of food and oil, which generated scarcity, queues and a thriving black market for the most essential goods. Never had we been so dependent or suffered such an economic disaster. which compromised social peace and national'security, as through the deliberate action of the worst Government in our History: the Socialist Rgime who had promised so-called economic independence. The new Government's first preocupation was to take the necessary measures to allay the impending collapse. In order to prevent hyperinflation, fiscal expenditure has been rationalized, taxes have been increased, and the situation of intervened or requisitioned business enterprises has been normalized. On the other hand, we have adopted a strategy of freedom of prices, fixing these only for those essential goods in which there is insuficient competition. In order to correct the crisis in our Balance of Payments, a policy of liberalization has been adopted for inte'rnational commerce. and

we have effected one of the largest currency devaluations i n recent history. Some of these measures have aroused explicable criticism, but the fact remains that it has been possible to re-establish the normal functioning of a ruined economy, definitely banishing the danger of hyperinflation and putting a stop to the.existing chaos. Only then could the present Government turn to the deeper and more permanent problems which have affected our economy, to a greater or lesser degree, for over three decades, and whose solution is essential for a solid future development. Viewed i n perspective, the Government's Economic and Social Policy has three main objectives: The first of these is the rechannelling of our productive resources, that is their progressive displacement towards those products which can be more efFiciently produced. It seems inconceivable -and inadmissible for the future- that for entire decades and in benefit of an often artificial and over protected industry, Chilean agriculture has been neglected, and full use has not been made of the country's mining possibilities. The fact that we possess a comparatively great mining and agricultural potential obliges us t o canalizerour resources preferably i n that direction. This does not mean a restriction of our industrial development, but rather its orientation towards fields which seem more advisable, such as agricultural industry arnong others. This by no means implies an artificial manipulation o f our economy. On the contrary, only a proper redistribution of our productive resources can do away with this long-standing absurdity and guarantee a rapid, solid and stable growth. The Socialist trends i n our economy during the past decade have provoked the uncontrolled growth of the

Public Sector, so that in 1973 Fiscal expenditure was 26% of the product, and the State financed 8O0/0 of the investment. The second objective of our Economic and Social Policy is therefore to reduce this Public Sector. When w e sustain that the State should only retain those productive activities or business enterprises which are of strategic or vital importance for national development, and hand over the rest to the responsibility of the Private Sector, w e are by no means minimizing the functions of the State. Precisely because it i s the State:s supreme obligation to promote the common good, and its mission is so fundamental, it should not be driven to neglect its inherent and irreplaceable duties by performing tasks which can be adequately handled by private citizens. With respect to the ~ t i t e ' sintervention in the national economy, we 'are not guided by rigid dogmas. There i s no doubt that the Modern Era requires a State which engages in the active planning and flexible regulation of the economic field, but each moment's reality should indicate how far in can go. What we do proclaim as a fundamental principle, however, i s that this intervention should keep its subsidiary character and should not annul or invade the framework of private initiative, for the latter is essential for collective progress in a rgime of free economy. State Socialism is largely to blarne for our Private Sector's past lack of initiative, deriving from having been paradoxically either limited by or excessively protected by an omnipotent State, who fixed convenient prices, subsidized credits and discouraged competition by means of the prohibition of or high taxation on imports. Since the State does not happen to be the best administrator or economic sponsor, save for a reduced

set of activities, and the Private Sector took no part in externa1 or internal competition, economic growth became distorted and stunted. Both for reasons of doctrinary principles and practica1 efficiency, we have adopted the system of a mixed economy. Finally this scheme has been drawn up with a third basic objective: that economic growth is t o be achieved in such a manner as to be translated at the same time into greater social progress. The Government has repeatedly made it clear that it does not look upon economic development and social justice as successive phases, but as indestructible parts of a whole, which must grow simultaneously, though it is evident that there can be no real social progress without a solid basis of economic growth., In order to reach these goals. the Government has taken a series of coherent. organic measures of extraordinary importance 6 r the future. A realistic set exchange and tariff policies has been adopted in order to open our economy t o foreign commerce. A type of exchange which promotes exports has been fixed. After the initial drastic devaluation, this exchange policy basically consists of maintaining the real value of hard currency, by means of periodic small devaluations, according to the rise of internal prices. This has permitted the normal operation of our foreign trade in spite of the unfortunate coincidence of the international rise in the price of oil and food imports, with the fall in the price of copper, our principal export. To this we must add the net payments, during 1975, of over 500 million US dollars corresponding to the rollover negotiations of our Foreign Debt. Parallel to the Foreign Exchange Policy, we have undertaken a Tariff Reform, which consists mainly in

shifting foreign commerce from the Public to the Private Sector. and permitting the import of new products by reducing and regulating customs taxes. Two years ago the maxirnum tariff reached 600% and it has gradually been brought down to 90%, and should continue in this trend. This reduction of tariffs requires a serious effort on the part of our business enterprises. so that they can successfully submit to foreign competition and improve their efficiency pattern. This rise in the type of exchange, couple with the reduction of tariffs, specially benefits unprotected sectors such as agriculture and its subsidiary industries. and mining, whose products had artificially low prices. as well as other branches of the industrial sector who due to the low type of exchange could not compete in the foreign rnarket or think of reducing their costs through mass production. Though on the other0hand these policies have undoubtedly affected some activities who benefited from the existing over-protection. and who have had to increase their efficiency in order to continue producing in a competitive manner, we cannot overlook the fact that the over-al1 pattern of opening our foreign markets is the pillar of our future development. The sole increase of non-traditional exports from 235 million US dollars to approximately 650 million US dollars between 1973 and 1975, should be fully evaluated, and constitutes the most tangible and eloquent proof of the enunciated policies' success. At the same time the Government has fomented interna1 savings and investments which were previously hindered by the progressive subsidy of credit and the lack of an adequate financial market. It has therefore been found necessary to modify the legislation and entire operation of the financial market,

allowing for a certain flexibility i n the rate of interest, and developing new entities to promote savings and ensure their most productive investment. I underline the latter aspect because the financial market is frequently criticized as though it were meant for speculation, when it should really constitute a mechanism for the proper transfer of capital to essentially productive ends. , The measures adopted in this field have meant the duplication during 1974 of financial savings in currency of equal buying power. On the other hand, by demagogically alleging socalled principies which were in fact merely political palaver, foreign investment was formerly discouraged, thus increasing our externa1 dependence. No Government has ever defined as explicitly as the present one :he nationalistic inspiration so deeply ingrained in our Armed Institutions. However, when a country's economic capacity is not enough to fully develop its productive resources on its own, it is not nationalism but sheer narrowmindness to refuse or discourage foreign capital. It i s well worth noting that while Marxism spread this demagogic complex in its endeavour to gain total power and destroy our economy, the Soviet Union has been desperately trying to attract Western Capital in order t o develop its own backward economy. The Foreign investment Statute has thus derived from the concepts enunciated in the Government's 'Declaration of Principies, in the sense that true Nationalism does not consist in the rejection of foreign investment, but rather in submitting the latter to conditions which primarily ensure the priority of Chilean interests. During the first ten months of its existence, the Comittee for Foreign investment has already approved

investments for over 220 million US dollars, and further investments for over 1.000 million US dollars are currently being negotiated. In order to realize the magnitude of this sum it is useful t o bear in mind that the average annual foreign investment approved during the past two decades in sectors not including the Great Copper Mines, was only 22 million US dollars. Within this task of adequate reassignment of productive resources and in addition to the above mentioned policies of exchange. tariffs, capital market and foreign investment, it is wo,rth noting the importance of the modification of the tributary system. The modification of the lncome Tax, and the establishment of the Value Added Tax, have effectively decreased tax-evasion, and at the same time permitted a taxation more adequate to high inflationary conditions. In order to reduce the Public Sector, 240 business enterprises which had either been intervened or requisitioned by CORFO, have been normalized. A t the same time, and with the exception of approximately 15 enterprises which due to their nature are considered strategic or of vital importance and will remain in hands of the State, we shall continue with the transfer of the rest into private hands. Some of these have newly become cooperatives owned by the workmen. The tasks undertaken by the Government i n connection with social welfare are equally important as those mentioned above. The reform in the Social Security, system is of the highest significance. It is necessary that the country realizes that this is not only directed towards correcting unjustice, incentivating employment at long range, and improving the scanty pensions which so many rightly feel constitute a mockery. The object of the present reform is t o provide the Labor Sector with a productive capital which will ensure its increasing

'

participation in the distribution of the product. This, in sharp contrast to the plunder which Socialist Demagogy preached, is a serious means to achieve greater social justice! Other significant initiatives are the "Social Statute for Enterprises", which has already been promulgated, and the Labour Code, which is being currently studied by the various entities involved. This legislation conceives business enterprise as an integrated community who should act with interna1 justice and externa1 efficiency in accordance with its social mission. A t the same time, though it is essential to combine hierarchy and participation in the relation between labor and capital. it should be well understood that their personal problems cannot be solved at the cost of national interest, as was so often the case in the past. The dangerous effects of a Labor Union's oligarchy have often been denounced in the past, when these have abused of their power obtaining increasing privileges in detriment of the more destitute groups. Those sectors usually found allies among politicians who in lesser or greater measure helped them maintain their prerogatives. Having recently established a more direct dialogue with the Labor Unions, I feel rnorally obliged to make it clear that, though they will always find the Government favourably inclined to settle their problems in justice according to the existing possibilities, we must not forget that the very nature of this rgime binds us not to give in to petitions which might eventually, either directly or indirectly, mean unjust postponement for al l. The President of the Republic must be the champion of the weak, of those who often are not sufficiently organized to be heard; this duty, which is a heavy

burden. generally invisible, and only present in one's innermost conscience, is perhaps one of the greatest moral responsibilities which behoves a man in public office. We have maintained complete religious freedom, as well as permanent contact with the hierarchy of al1 kinds of religious organizations, as also with philosophical groups. O ~ i rown Christian convictions, which bind the personal value of every human being to their common spiritual dignity, have led this Government to look into the problems of extreme poverty. It is true that large groups of Chileans, through defficiencies of the social structure. have not obtained the economic and social benefits which the current legislation and Governments have intended for them. We have drawn up a map which enables us to locate the cases of extreme poverty, and social action is being specially and constantly directed towards them. Only at such a time as extreme poverty has been completely banished from our country, will our nationality attain its full meaning. Having detained hyperinflation by means of the initial measures already described, and laid the foundations for our economic future, the Government has now devoted itself towards controlling inflation, which last April was still very high, and with an added deficit of 1.000 million US dollars resulting from the low price of copper. A plan for economic recovery has been devised and put into practice, with the rnain purpose of defeating inflation. Otherwise we cannot expect the necessary degree of new investment, and what is even worse, the great efforts made by the Government as well as by the country in general, would have been wasted.

With this in mind, there has been a further reduction of fiscal expenditure, so that the fiscal deficit for this year, in both currencies, should only ascend i 2 % of the total outlay. It is worth recalling that in 1972 the mentioned deficit ammounted to over 40%, added to which the heavy losses of the enterprises of the so-called "Social Area" raised the financia1 deficit by means of currency issues to approximately 60% of the budget. A t the same time we are specially urging the efficiency and self-sufficiency of enterprises of the Public Sector. Measures have been taken to modify the areas of foreign trade and the capital market, in order to diminish the pressure of expenditure and to facilitate the economy's adaptation to the newly generated conditions of greater productive activity. The recent behaviour of the Consumer Price lndex allows me to responsibly declare that the high rate of inflation which we have suffered until the present year's first semester, has been defeated. This is only the initial step towards fulfilling our fellow-countrymen's aspirations for well-being. It is however a lesson which proves that success can only be achieved through persevering effort and clear goals. On regarding these first gains of a hard but serious and stable economic policy. I wish to pay special homage to the women of Chile, who i n the midst of extremely difficult times have managed to keep their faith unmarred, and transmitted to the rest of the Chilean people their hope for a better future, which l arn sure will soon arrive, and compensate their boundless abnegation. However, the application of this plan for economic recovery has meant lowering the income of our

countrymen to that which our present economic capacity can really afford. A great part of the so-called "social cost" of the economic programme is merely the acknowledgement of the effects of the international crisis on the persistently low price of copper. On this account alone each Chilean family receives a monthly average of 105 thousand Escudos less than during 1970. This impoverishment of 'the country, produced by factors which lie beyond our control, has necessarily meant a reduction in the consumption, as well as the open manifestation of a higher rate of unemployment, particularly in the great urban centres. You w i l l note that I say "open manifestation of unemployment". because it is common knowledge that i n 1973 the enormous existing rate of unemployment was disguised by means of creating useless and unproductive jobs in the Public Sector, which required constant currency issues. I t is thb Government's duty to warn public opinion that, as a consequence of the transitory state of economic contraction due to the country's straitened circunmstances, and to the agreements of ClPEC (copper producing countries) in order to defend the price of copper in 1975, the production will fall approximately 1O0/0 with respect to that of last year. This should not be disheartening or produce confusion, since it is contemplated in the economic plans and will be recuperated in the near future. To have eluded this "social cost" would have meant once more deceiving the people by allowing them to continue living on false hopes for a time, but within a few months Chile would have faced an even worse social and political plight than that of 1973. I t is far frorn agreable for any Government to sssume the obligation of taking such drastic measures,

specially when not personally responsible for the causes involved. But when power has been attained, not through one's own will, or personal political ambition, but by a moral, historical and patriotic mperative, the exercise of authority only makes sense in the strict compliance of moral duty. I feel that the reason for the generous support which 1, as well as the entirelGovernment, are constantly shown throughout the whole country, responds to the people's instinctive conviction that this is the case. Because I know that there are Chileans who suffer, it has been my desire to visit the utterrnost corners of the land, bringing with me a word of comfort and the will to find a solution to their problems. If this Government were guided by the interest of political flattery, it would only be concerned with thc more influential nuclei of public opinion. But in a truly Nationalistic Goverment, every Chilean citizen, however hurnble, and every bit of land, no matter how remote, have the priceless value of forming part of our Fatherland. .Together with expressing gratitude for the understanding attitude of our fellow countryrnen, I cannot but make special rnention of the devoted collaboration of my dear wife, who with indefatigable abnegation has wanted to share the burden which Chilean women bear today -in the exercise of her tasks, she receives such warm affection that I am deeply touched. Precisely, because the Government is aware of the hardships which vast sectors of Chileans suffer, due to the transitory economic contraction, apart from the Plan for Economic Recovery, which s well under way, another National Social Plan has been entrusted to the Ministry of the Interior. The object of this initiative is to alleviate the "social cost" of economic recuperation, in the measure that it has become more acute.

The "Programme for Minirnum Employment" has been established through the Municipalities, and vacancies to absorb unemployed persons have been increased t o 100.000, which considering each family group brings the number of persons who benefit from this up to over 500.000. Of these, 200.000 will receive a food supplement which has been obtained by means of an agreement with the Agency for lnternational Development of the United States (AID). In order to eliminate the problem of temporary camps and emergency settlements within a lapse of not over 10 years, a Social Housing Plan has been devised by Decree Law 1.088, by means of which 10.000 suitable dwellings will be provided this year, and 25.000 "social" (or rninirnum requirernent) houses annually, as of next year. In the field of Nutrition, and counting on the cooperation of the Private Sector, three direct Programmes are being applied: that of ,Complementary Nutrition, which provides milk and protein mixtures to 1.700.000 children, pregnant women and nursing mothers throughout the country; that of School Nutrition, which provides 750.000 daily breakfasts and 650.000 daily luncheons, thus providing nutritional aid to over one mjllion children in Primary School. And thirdly, that of lnfant Attention, which besides providing education and special attention for children from 2 to 5 years old, is this year already giving complete nutrition to 28.000 children of the poorest neighbourhoods. On the other hand, by means of Decree' Law 1.126, a Programme for the Provision of Supplies in Shanty Towns is being put into practive with the establishment of modern supermarkets, of which the first four have already been inaugurated. This Pr0gramm.e has had the valuable help of the Private Corporation bf Social Development, and will be extended to the rest of the country in the near future, contemplating the opportune

and reasonably priced provision of essential goods t o the neediest sectors of the more vastly populated areas. We have been obliged to postpone many necessary public works by giving priority to attending these basic social necessities. However, the Government inaugurates today the first stretch of the Santiago Underground, one of the most modern of its kind, which should fill Chileans with pride as well as contribute to the solution of the transport problems of the lower income bracket. We know very well that this is not enough to eliminate the present hardships, but it is a significant step in the right direction. In al1 fairness it must be acknowledged that the sacrifices have been proportionally shared by all, and that the higher ihcome bracket have been greatly affected by measures such as the increase in the rate of progressive taxation, of luxury articles, the revaluation of real estate, the modification of the mechanism for drawing upon accounts of Readjustable Mortgage Certificates (V. H. R.] and so forth. In our constant preocupation for the problems which the labor classes face we shall continue our policy of granting periodic readjustments of wages and salaries, in an effort to at least maintain their present buying power, until such time as our economic recovery allows us to .gradually increase this. Certain groups who have been traditionally postponed, such as teachers, will receive additional readjustments. I respectfully appeal to the working classes' comprehension of this Government's constant attitude towards the.m -never flattering, yet demanding disciplinefor I feel that with serious, realistic and conscious effort, and not heeding political agitators who seek t o take advantage of the present difficult

circumstances, we can al1 together build a healthy syndicalism, devoid of politics, for a better future for them and for their children. .Once the phase of economic recovery is sucessfully over, we shall be able to undertake the next step towards our economic development. In an atmosphere of economic stability we shall be able to concentrate on fully using the country's productive capacity, by means of encouraging regional development, laws incentivating the use of hand labor, an efficient mechanism for the amortization of new investment, and recent measures for the promotion of non traditional exports which we hope to increase by opening new international markets and maintaining an adequate type of foreign exchange. Foreign investment shoul'd then increase significantly, for we shall have given proof, by our social and economic stability, that our country is among those who can offer the greatest security for investment who considers that they are a vital part of a to develop new industries and mining centres, thus creating new sources of work. We shall continue giving special priority to agriculture, hoping to reduce food imports to 210 million US dollars in 1976 -figure which as I already mentioned surpassed 600 million US dollars in 1973, and has been reduced to 330 million US dollars during the present year. In order to stimulate agricultural produce we have established reasonable prices for certain basic products such as wheat and sugar beet. We shall provide maximum facilities for export of products whose internal prices are castigated. The agricultural sector's access to the capital market will be simplified so that they can obtain reasonable credits, and we hope to continue reducing the tariffs for basic cost components.

Further priority will be given to housing within the reassignment of public investment, due both to the importance of improving living conditions and to its rapid effect in providing more work and increasing economic activity. When the time is ripe for this new phase in our economic development, the Government will take the necessary measures in order to make it as efficient as possible. But economic development will not come suddenly or by means of magic; it will necessarily be gradual, and Chilean businessmen must understand that its success, based on the right to private property and the impulse of private initiative, will largely depend on their own creative capacity. Chile requires daring and agressive men of affairs who realize that they must make their decisions now, n order to derive proper benefit in the near future. Those who succeed, and at the same time comply with the legal social demands imposed upon them, can be certain that they shall have the respect of a Government who considers that they are a vital part of a modern, prosperous and integrated Nation. With this future development in mind, I cannot help thinking of the spiritual and social challenge which it involves. The concept of economic development and social progress as indisoluble aspects, requires the drawing up of clear lines of action in order to make this a reality. The Government is therefore preparing a 5 year Plan of Social Action which compromises the participation, integration and development of the community from neighbourhood council level up to the highest regional or national levels. The present Government has from the very first moment declared that the fundamental aim of social

development is to effectively achieve equal opportunities for al1 the inhabitants of the world, with the sole differences which may derive from their lesser or greater personal abilities. There is no better vehicle for progress than education, and for this reason the Government feels that the State and the community share the obligation of giving each child and grown person access to education and a real opportunty for progress. In the 'field of higher education. the Government is preparing a law which ensures the possibility 'of free Universities for those who require it, or at least the maintenance of matriculation fees which do not exceed what they have traditionally been in the past. But it is anly fair to also contemplate some form of retribution to the community by students who have graduated under these circumstances. These should be able to choose whether they wish to pay this retribution from their own incomes. or by means of tem~poraryprofessional service in the Provinces. The system should be a means of awakening a deeper social conscience in our Youth, as well as contributing to the necessary educational aid yearly provided by the State. We also attach great importance to the special capacitation of workmen. The strict relation between personal ability and personal revenues acquires greater relevance with economic progress. ,However, the appearance of the phenomenon of development in a nation poses even more delicate problems. The experience of many countries today indicates that economic development often becom'es so strongly dynamic, that it conditions in a determinative manner the whole set of values and way of life of the nation; material progress is no longer a means but an end, and escapes control. So-called "-consumer market"

societies appear and practica1 materialism tends to invade everything. Due to the spiritual emptiness and moral weakness which this reality has produced in the developed world, we also feel obliged to redefine and canalize the concept of well being, in the light of a na'tionalistic and Christian humanism, whose values have for so many years conformed our way of life and shown us a clearer road to happiness than that of most inhabitants of great overcrowded urban centres, whose economic growth and development have imposed an infernal rythm on their lives. Chile is now at the proper instant in which to steer its future economic development towards those higher aims. and not allow an omnipotent and devastating economy to dictate to its thoughts or aspirations. It is not an easy task. but can be undertaken by the joint efforts of the most capable and of a Government who fully comprehends its significance and complexity.

INTERNAL FRONT

During the past 12 months the Government has continued the process of de-centralizing the Administration. The initial experience of five Pilot Regions is being carefully evaluated in order to perfect the future stages, but it has already undoubtedly instilled renewed vitality into areas which languished without personality or initiative of their own. Within the geo-political concept with which the Government seeks to strengthen the far ends of the country, and consequently secure our Nation's sovereingnty, lquique and Punta Arenas have been declared Free Zones -a plan of vast importance for the colonization of Aysen, recently named Carlos Ibez del Campo Region, is in its final phase. Consequently I have paid personal attention to this matter and made special trips to the extreme zones of the country. For this same reason I visited Easter Island. and feel certain that the fact that for the first time a President of Chile reached that faraway enclave i n the Pacific Ocean and gateway of our territory to the East, has helped strengthen the spiritual and material ties of the islander with the Continent in a genuine expression of shared nationality. However, maybe the most difficult and important problem in the interna1 front i s Chile's future destiny in the palitical and institucional fields.

The world beholds today a generalized crisis of the traditional forms of democracy, whose failure and exhaustion, at least as far as Chile is concerned, should be considered definite. This situation is particularly favourable for totalitarian rgimes of different ideologies, but with cornmon scorn for the spiritual values of mankind, to take advantage of this weakness and seize power. Those of us who believe that the concept of democracy essentially contains a sense of man's dignity and liberty which must be preserved and developed, are dutybound to face this problem with decision and recolutely advance towards the creation of a new democracy by means of a new political and institutional rgime. The profound crisis of contemporary democracy finds its deepest cause in the loss of the basic spiritual unity of the peoples of the world. The free play of discrepancies both i n the generation and exercise of power offers no rnajor institucional obstacles i f at least certain fundamental principies are validly accepted by the whole comrnunity. but when this minimum unity is lost, society can no longer be ruled by the same mechanisms whose efficiency has been damaged at the roots. The apparition and propagation of Leninist-Marxism in the world today represents the destruction of the basic moral foundations from which the Western and Christian civilizations derive. Under the euphernism of alleged "leninist morals", Communism destroys al1 notion of good and evil, cynically judging acts according t o whether or not they are convenient for totalitarian revolution. And thus, in the name of that entirely immoral doctrine, we have witnessed the assassination of millions of beings; the slavery of entire nations; hatred, lies and slander as an habitual line of

conduct; and al1 kinds of aggression against man. his rights and liberties. It i s evidently irnpossible to live in democratic harmonic with such a doctrine. Reality has laid bare the inadequacy of the concept of Iiberty as understood by classic liberalism and has placed us in the position of having to re-define it in its authentc significance. True liberty is not simply each individual's right to do or say as he pleases. Freedom is an innate atribute of man which enables the human being to defend the inviolability of his own consciente as well as to exercise the right of unconfined self-decision for himself and his family, free from the oppressive interference of the State. Since liberty derives from man's inherent spirituality and is therefore justified i f put to use for his moral and intellectual development. it is unacceptable i f employed for the weakening and destruction of those very sarne values. However, social environment and a correct juridical order require certain restrictions on individual liberties, not only to preserve the personal freedom of others, but for the common good. Facing today's novel circumstances it is imperative to react in a vigorous and alert manner. In this day and age, a State's sovereignty not only depends on its territorial integrity. Its political, economic and social organization must also constitute an efficient guarantee against another graver peril: the attempt of international Communism, as the instrument of Soviet imperialism, to seize States, infiltrating them frorn the inside by means of the local Communist Parties, aided by other groups who favour or condescend to Marxism by paving the way or ensuring their impunity. Direct territorial conquest is thus replaced by the

penetration of the vital centres in free countries who naively perrnit the access of Marxisrn to the control of labor unions, universities and the mass media. Even the ecclesiastical sectors which by definition should provide the rnost solid protection against this avalanche, have suffered Marxist infiltration within their ranks. The world today faces an unprecedented forrn of war. Cornrnunism ideo'logical.ly penetrates society and at the same time, frorn its various centres of power, imposes upon democratic Governments a line of action which favours its own advancernent. The universal character of the Leninist-Marxist revolution fits in perf,ectly with the irnperialistic hegernony of the Soviet Geo-political School. In this war, nothing can be of greater use to Comrnunisrn than the declaration of ideological neutrality by States which are not yet under its control. How can a State possibly defend itself in an ide~logical war if it official,ly declares its neutrallity in the ideological field? To this we must add that Communist control of a country not only rneans the end of al1 personal liberty or State sovereignty; it also involves the destruction of the very essence of nationality. The latter is inadrnissible in the narne of Liberty. The Fatherland, with its traditions and historical-cultural identity, cannot be the patrirnony of any given generation, for it also belongs to those who built it in the past, and those who have a right to its future inheritance. Norl can any generation so consider itself the sole possessor of its nationality as to feel authorized to destroy it. Our country temporarily forgot th,ese truths and experienced the bitter consequences. To begin with, Communism was allowed direct or indirect control of fundamentally influential media and was given ample

facilities for political action and propaganda. Later its vocabulary and ideas were gradually adopted by democratic sectors, who from the habit of dialogue inadvertently became imbued with its myths and slogans. Thus the "non Capitalistic Road to Development", "Comrnunity Socialism", "Christians for Socialism", and other such manifestations appeared, which, when i t comes to the definition of their doctrines, were either devoid of meaning or could only answer to Marxist ideology. It i s not surprising then that these sectors never quite realized the virtual suicide they committed by allowing the access of Marxism to power, when they could have avoided it constitutionally. And not content with this, they officially introduced the most irrestricted ideological pluralism into our Constitution, by declaring that to sustain or spread any political idea would not constitute offense. Thus guerrillas, terrorism or the organization of paramilitary forces could go unpunished if endowed with the protective cloak of "political ideas". Now that we have risen from the bottom of the abyss to which this attitude led us, Chile has resolutely proclaimed its nationalistic and Christian definition, by means of a Declaration of Principies, laying down the foundations for the future State which our rgime is endeavouring to build within a sense of duty t o defend our national Sovereignty and tradition in a manner suited not only to conditions 50 or 100 years vld, but to those of the present times. Not to permit the enemy's access to the control of the mass media, universities or trade unions, does not in any way curtail the legitimate freedom of expression, of cultural thought or of labor organization. On the contrary, it implies preserving these from the destructon they are exposed to i f the very forces who intend to annihilate them are allowed to grow freely.

We Chileans have recently had proof of these harsh realities and are firmly determined not to repeat the same mistakes. The classic concept of punishment is often defied nowadays by the appearance of terrorism, a contemporary iniquity by means of which small minorities commit criminal offenses against innocent people who generally have no connection whatsoever with the objectives of the delinquents. Due to the danger and cuelty involved, Society is under the obligation of drastic self defense. thus giving birth to new restrictive measures in the exercise of personal liberty or lawful rights, in order to reconcile these with the imperative of security which every comrnunity justly demands. The aforernentioned is directly related to the problem of Human Rights, on which I wish to dweil for a moment, since it is still being used as an instrument to oppose our Governrnent and our country al1 over the world. , Human Rights, in the measure that they are truly such, are universal and inviolable. but they are certainly not unrestricted or of equal hierarchy. As outward manifestations of liberty. they are, without exception, subject to the restrictions imposed upon them by the common good. In this respect it is curious to observe that those who admit without hesitation that the right to private property is limited by its social function, are often the first to protest for the restriction of other rights and liberties, even if also applied for the sake of comm,on good. Nor are al1 rights of the same hierarchy. Even among natural rights, some are more fundamentally important than others. They may usually al1 be exercised simultaneously, but this is impossible when society becomes sick. The latter situation is precisely a

symptom of political abnomality requiring an exceptional juridical rgime in which the exercise of come rights is limited or can even by suspended in order to ensure the free exercise of other more important ones. Those who condemn the juridical restrictions inherent to the present state of emergency in which we are living should definitely understand the reason why their arguments go against the mature conviction of the Chilean people. The vast majority of our fellow countrymen accept and support those restrictions because they are aware that these are the necessary price to be paid for the peace and social order which make our country a veritable island within a world convulsed by violente, terrorism and generalized disorder. The greatest possible enforcement and highest respect of al1 Human Rights implies that these must not be exercised by those individuals who spread doctrines or commit acts which in fact seek to abolish them. This makes it necessary to apply restrictions as rigorous as the circumstances may require, t o those who defy the juridical norms in force. I know very well that sometimes those affected are youngsters who are not always to blame if their consciences have been poisoned by fanaticism and hatred; I know even better that they often have relatives who do not share their views and yet have to suffer the consequences. As a husband and father myself, I have often been deeply moved by this reality for I can understand the despair i n some homes; believe me, it would be much easier for my personal sensibility to give in without sanctioning, but this would mean betraying my duty. A Head of State must apply strict authority or risk falling into anarchy, whose consequences are then paid by al1 in a harsher manner than that required initially to keep public order.

Our attitude must necessarily remain inflexible, for the good of Chile and its sons. An accurate comprehension and deep study of Human Rights can only be obtained by rneans of an ample analysis of a country's life through the ages, and not by a photographic glimpse of a given moment. A restriction applied as requisite for Society's convalescence in order to defend its integrity and perrnit the healthy future exercise of the mentioned restricted rights, cannot be considered equal to a restriction applied as simple vehicle to provoke the definite destruction of every form of liberty. The Chilean Governrnent, in answer to its detractors, tells thern it is sheer suicide to believe that Human Rights are better protected in countries whose weakness places them at the mercy of Marxism, than in those States like ours who prefer to defend themselves. It may sometimes seern as i f the apparent broadrnindedness of the forrner countries projects an image of greater respect in the exercise of Human Rights; yet the truth is quite the opposite, for they are in imminent danger of the triumph of totalitarianism definitely putting an end to al1 Human Rights. The evolution of the Emergency Measures since the Military Pronouncement to this date indicates a positive and progressive norrnalization, as far as the circumstances so perrn,it. In fact, and in spite of the Soviet Union's and Cuba's guilty silence with regard to my summons from this same rostrum exactly a year ago, Chile has kept its word by allowing the freedom and departure of detainees who had been irnprisoned under the provisions of the State of Siege, and even of persons condemned by Military Tribunals. Thus, during the past 12 rnonths, 483 persons who were preventively detained and considered security

risks, have ahandoned the country. At the same time 189 request for the conmutation of penalty have been granted, and imprisonment exchanged for exile. It seems worth noting that these figures have not been greater because of the difficulties which we have encountered in the re-allocation of these persons. Governments of the Soviet orbit have, as usual, given proof of the fallacy of "Socialist Solidarity", first insulting Chile by demanding the liberation of the said detainees, and then refusing to receive them. In the same line of action, the Government has dictated Decree Law 1,009 which contains guarantees which our legislation did not contemplate formerly for persons detained under the provisions of the State of Siege. To continue with this normalizing evolution which I have ,mentioned I wish to announce that, from today on, the Government had decided to reduce by one Decree the present State of Siege, from the State of lnternal Defense to that of lnternal Security. This means that, cave for some exceptionally grave offenses against the security of the State which are expressly included in Decree Law 1,009, the jurisdiction of the Military Tribunals will from now on be exercised according to procedure in "times of peace", instead of in "times of war" as hitherto. Consequently sentences may be appealed before the Martial Court and finally before the Suprerne Court. It is impossible to go any further for the present, since subversive action is still latent. To the permanent evidence and challenges of clandestine struggle, we must add the constant reports of meetings and activities broad to slander and attack us. Radio Moscow continues to dedicate lengthy daily programmes in order to incentivate subversin against us. There are alway those who enquire what the ab-

normal situation is, which ,requires the present emergency measures. Our reply to them is to listen and read what international Communism has t o say about its plans and activities in relation to us. Others, in an effort to flatter us, declare that since the Govern,ment has been so successful in obtaining social peace, it would be worth considering the uselessness of maintaining restrictive measures. The latter i s answered with a very simple question: Do they not realize that this peace is precisely due to these same emergency measures? If we feel ready today t o reduce by one degree the State of Siege, it s thanks to the efficient action which the Government has taken to dismember organized extremist groups. But while any kind of significant subversive action still exists, whether over or underground, we are obliged to rnaintain the necessary restrictions to ensure social peace and prevent the return of chaos. Consequently, besidec the regulations inherent to the State of Siege in its present degree, and the Emergency Zones, Curfew will remain unchanged. However, it should be clearly understood that when we talk of normalization, we entertain no thoughts whatsoever of any return in the near or distant future to unrestricted party politics. That would mean the delivery into th.e enemy's hands of the tools which they require for demagogy. petty politics and the progressive advance of Marxism. Al1 that belongs to the past, and for this reason the present Government from the very outset has declared the need for creating a new institutionalisrn as essential key to the new rgime it aspires to develop. This, new institutionalism is gradually acquiring shape, and important juridical structures have been promulgated in relation to the organization and func-

tions of the State, to emergency rgimes and individual rights, t o Interior Government and Administration, to labor relations, economic structure and other important matters. I am also pleased to announce that the Honourable Government Junta has decided, making use of its constituent power, to dictate, during the first semester of next year, three Constitutional Acts: the first of which refers to the basis of the new institutionalism; the second deals with nationality and citizenship; the third refers to rights, Constitutional guarantees and emergency rgimes. A l l three form part of the valuable work executed by the Committee of Jurists who have been entrusted with preparing the project for the new Political Constitution. Later on, the Constitutional Acts for the Juridical Statute of the Government Junta, the Constitutional Rules referring to the Judicial Power, and the Decree 1-aw for Regionalization, w i l l be drawn up, with the cooperation of the mentioned Committee of Jurists. Chile w i l l then have its unique and true Constitutional Body, consisting of this group of Constitutional Acts which will eventually absorb many scattered regulations and at the same time definitely abrogate the Constitution of 1925. The experience derived from this temporary, though complete and clear institutionalism, w i l l permit the evaluation and unhasty elaboration of what should be our definite institutional structures, particularly i n relation to the generation and composition of the organisms and Powers of State. It w i l l thus become possible t o adapt the pattern of this new institutionalisrn to the changing national realities, instead of trying to frame the latter in theoretical molds which would surely prove inefficient or precipitate. I also wish to announce the creation, i n the near

future, of a Counsel of State, of a consultative nature, so that Government can count with highly qualified opinions on important matters, when the Honourable Government Junta or the President of the Republic so require. We shall invite the following people to becorne members of this Counsel of State: their Excellencies the former Presidents of the Republic; a'former President of the Supreme Court; a former Comptroller General; a former Commander in Chief of each of the Armed Forces and a former Director General of Carabineros; finally, a reduced group of citizens who, for their personal prestige, moral independence, learning and knowledge of national affairs, can effectively contribute by representing the best of our republican expression. We are certain that the nation will appreciate in full these resolutions which prove our definite will to act within the law according to the purest national tradition. The task, however, requires time and creative energy. If, as we have pointed out before, classic democracy's failure is due to a moral crisis which has shattered the basic unity which should exist in every organized country, there can be no solid and lasting new imstitutionalism unless we reconstruct society's basic unity -its achievement is a difficult challenge which encounters the sturnbling blocks inherent to any moral task. The struggle between Liberty and totalitarianism, between Christian Nationalism and Marxism is endless; Communist never give up their principles, they only modify their tactics to make us abandon our own principles.

We are then dealing with a total combat, which cannot be won in the economic field or by force alone. It should preferably take place and basically be solved i n the field of intelligence and spirituality. The facil that Marxism is often welcomed i n many highly developed sectors is still another proof that when its doctrine cannot use poverty as its cultivation grounds, it touches other springs which correspond to moral failures. This is why the present Government attaches such importance to the reestablishment of moral standards in the State's administration, thus setting an example in order to re-awaken patriotism, fortitude and soberness. But, over and above this, we consider it essential to stimulate an intellectual development which will vigorously safeguard our anti-Marxist doctrine. We cannot make the mistake of considering that public order. economic development and social justice alone can automatically defeat Communism. Experience has proved the contrary, and the ideological struggle can never be given up or substituted. In this respect I appeal specially to Chile's Youth, since they are perhaps those who best understand the significance of the new rgime we are shaping, realizing that they themselves will take part in what we older men have begun, always with the future of our children in mind. Together with thanking them for their generous support, I urge them t o keep t o the fore i n constant spiritual renewal, preventing the propagation of error and myths which drove us t o the verge of definite collapse. Each Chilean Youth should feel that the Government and the whole country gaze upon them with hope. recognizing their rights and pointing out their duty towards History.

FELLOW CITIZENS:
Last year I emphasized the fact that the fundamental pillar of the present rgime is the monolithic unity of o u r ~ A r m e dForces and Carabineros, which is best expressed in the perfect cohesion and harmony which reigns within the Government Junta. On this occasion I can proudly repeat that this unity remains unaltered, and no obstacle which circumstances or our adversaries may place in our path 'will ever make' us break what has been sealed with the blood of our martyrs who gave up their lives for Chile's liberty and greatness. As a consequence of its .experience in our country, lnternational Communism has realized that i n order to win they must ideologically infiltrate the Regular Armed Forces. The traditional cohesion of the latter thus depends more than ever on acquiring a complete and harmonious doctrinal unity regarding the different aspects which conform the life of the nation. With this in mind, the Superior Academy for National Security was established last December. In it, with the joint effort of the four armed institutions and the cooperation of qualified civil elements,-a common school of thought w i l l be forged, deriving from the Government's Declaration of Principies and the Military concepts of national security. It i,s only fair to point out that during this period in which the Armed Forces have been obliged to assume the Government, their proffessional character and specific missions as forming part of National Defense, have not suffered, but have been permanently maintained in their purest and highest expressions. To this we should add the silent but devoted and constant services which its members have rendered, particularly in cooperating with the solution of problems relating to the lower bracket population.

I hereby wish to express the Government's special gratitude to the distinguished wives of the members of the Honorable Government Junta for the efficient and disinterested social work which they have undertaken. I also wish to make these thanks extensive to the wives of al1 the members of the Armed Forces and Carabineros, who with enormous generosity, and working elbow to elbow with the wives of civilians. are devoting their time and energy to the task of reconstructing the Nation. On September 11th last year 1 declared that during the second year of Government we would try to accentuate the civic-military integration, and the participation of loyal and capable civilians in the administrative tasks. This participation is at present very significant, and has been increased at al1 levels, thus enabling many officers to resume their specific institutional duties once again. Public opinion has also been able t o appreciate the first signs of an organization of a civilian movement for national unity. Though this initiative has been spontaneously put forth by various sectors, as Head of State 1 feel duty bound to express the Government's sympathy and encouragement, for we see in it a patriotic movement which will strengthen civic-military integration and eventually help replace the ancient party politics system which so strongly divided our citizens.

CHILEANS:
Soon after our independence, Chile was one of the first countries in the world to abolish slavery. Now our country has broken the chains of totalitarian Marxism, the great 20th Century Slavery, before which so many bow their heads without the courage to defeat

it. We are thus once again pioneers in Humanity's fight for liberation. Our victory over Communism is specially significant because of the Geo-politic Strategic importance of our country in the defense and security of the Continent, but even more so for its deep spiritual contents. Chile will ignite today the Flame of Liberty, as a Iiving symbol of its faith and hope for a world which at present labors in darkness. As President of Chile I feel certain that this flame will be lit with the support of the entire Chilean population, whose hearts beat in unison with the highest and purest patriotism. I devotedly implore Our Holy Lord, with deep humility before the magnitude of our task, never to allow this flame to die down, and that Chile may always face with renewed vigour the tempests which may arise, and keep its patriotic oath of forever being "the tomb of the free or else the shelter against oppression".

PROCLAMATION OF THE PRESIDENT OF THE REPUBLIC GENERAL AUGUSTO PINOCHET AT THE BULNES SQUARE

MEETING SEPTEMBER 11-1975

CHILEANS:

Two years ago, the President who is addressing you and the Mernbers of the Junta of Governrnent that are accompanying me in this stage, obeying to the clamour of an entire country, we took the decision, the responsible decision, of saving Chile frorn the chaos and destruction to which conveyed us the totalitarian mentality of Marxist-Leninisrn. We thus answered to the libertarian vocation of our citizens and we assumed the power in order to reconstruct, Chile morally and materially. Today your multitudinary presence in this meeting is the best attestation that we can deliver to the world of the unity of principies that exist between the Government and the people of our country. In this unity, where the rnilitary and the civilians are strongly merged, arise the Liberty as the unremittable essence of the national soul. For this reason we battled on Septernber 1l t h against those who tried to enclave the Chileans. It was also for this same reason that the Armed Forces united insolvably in order to protect it from aII. interna1 or foreign menace. For Liberty, the people of Chile, this same people that today move us so deeply with its presence, have

learned to accept, in a mature and manful way. the hard and painful hours of a process of reconstrution. More than that, it has contributed with the best of itself, in a collective effort that I can not ignore in its value as a great patriotic gesture. Once more, the haughtiness and the moral stoutness of the Chilean citizen permits him to overpower the difficulties and to persist in order t o obtain his dearest ideals. For whom know really our nation, the demonstration of this afternoon it is not a surprise. It is the confirmation of a fact that is a mile stone in our history: September 11th throbs in the heart of al1 the Chileans. And it could not be different. A people that fighted during three years by its own and spontaneous initiative, it is the owner of a power that flows from deep ideals. Those men that transformed their unions in trenches. Those women that transformed their homes into sanctuaries of the resistance. Those children that faced like men the brutal violence of the fights in the streets. A people determned to face al1 that, is a people that could not live without liberty. From that is that this September 1 l t h has already such a deep sense for everybody and every one of the Chileans. Our decision was the expression of a majority assent and, two years afterward, your presence in this meeting ratifies it. More than that, when the moral significance of a meeting of this magnitude represents the genuine expression of an ideal of liberty that we al1 will make true as an irrevocable decision. More than a symbol, the great Flame of Liberty that we will light this afternoon is a concrete objective that encloses efforts, will and vocation.

Efforts to preserve, improve and maintain it alive and everburning i n al1 the years to come. Will to defend it from al1 menace and to keep it free of al1 damage. Vocation t o serve it, in the same way that we serve our Fatherland, without second thoughts and thinking only of the common welfare. It is not an easy task the one w e are facing now. On the contrary, it i s the more solemn compromise and of the highest responsibility that i s assumed jointly by the people and the Armed Forces since the days of our Independence. Liberty is not a free gift. We must conquer it, day after day, because its enemies work intensely to destroy it or t o minimize it i n out- consciences. It has to be perfected and it is not perfected collectively while each individual does not advance himself in the way of perfection. It has to be preserved, and for that, the ,citizenls will must not be depressed; on the contrary, this must be strengthened continuous and permanently. In the end, we must deliver it t o our descendant pure and clean i n order that they w i l l receive a most precious legacy and learn how to keep it for their sons. We, that two years ago gathered from the citizenship that sacred Flame and lighted with it the great torch of Liberty that today illuminates our people. have felt as a mandatory of our duty, of our vocation as soldiers, the necessity to renew physical and spiritually our oath of liberty for Chile. As w e did then, we w i l l gather the fire of the citizens, the energy and the w i l l to be true and loyal with our vocation of service. In our decision of yesterday, that we took within the solitude of our consciences, we felt the burning spirit of the Chilean people. In our decision of today, taken facing you. we felt the deep spiritual communion that unite al1 the Chileans,

and sincerily I say to you that we are proud to have comprehended your sentiments yesterday and today. A year ago, you took an oath, before God and the Fatherland, to fight for liberty for our country and to give your own lives if it was necessary. Will you renew this oath? (The crowd answered as one man: YES!) Then, i n front of you, framed i n our beloved Chile, and wishing to answer with dignity to the motto of the highest hero of our Independence: "To live with lhonor or to die with glory", we invoke the Holy Providence to guide us to light the Flame of Liberty. that will illuminate forever the destiny of our Fatherland. (In this moment, the President of the Republic and the Members of the H. Junta of Government lighted jointly the Flame of Liberty.)

CHILEANS: As soldiers, we have renewed the oarh we made before God and the Fatherland to save our country of slavery. The testimony of this decision i s that Flame that raises up to the sky of our Chile. The people have the duty to keep it alive and everburning. Only working and contributing with our effort, we can transform Chile into a great nation. Now, 1'11 invite you al1 to joint with these ideals, in a great flame of National Unity that presents to the entire world our irrestricted vocation for Liberty and our strong decision to defend it, no matter what happens. HURRAH FOR CHILE!