CHILEAN MOVE

Press, Volume CX, Issue 32461, 23 November 1970, Page 10

CHILEAN MOVE

Control taken of U.S. firms (N.Z. Press Assn—Copyright) SANTIAGO, Nov. 22. The Chilean Government has taken over the administration of two local companies controlled by American interests, accusing them of intentionally depriving Chileans of jobs. Although the action was based on a 1945 Chilean labour law, it was the first open move against foreign businessmen since the MarxistSocialist, President Allende, took office on November 3. The Under-Secretary of Economy (Mr Oscar Garreton), announced last night that Mr Alle'nde had ordered the “intervention” of Nibsa, a plumbing and heating-fit-tings manufacturer, and Alimentos Purina de Chile, which raises chickens and makes animal feed. Both companies had stopped or reduced production and laid off workers. The Northern Indiana Brass Company, of Elkhart, Indiana, owns 50 per cent of Nibsa, which at one time supplied about one-third of all the brass valves and fittings in Chile. Adela, a European consortium, owns 25 per cent, and the remainder is Chileanowned. . _ Ralston Purina de Panama, a subsidiary of the American firm of Ralston Foods, owns 80 per cent of Alimentos Purina. Mr Agustin Edwards, one of the richest men in South America, who now lives in the United States, owns the remaining 20 per cent.