Allende’s ‘Cabinet of appeasement’

Press, Volume CXII, Issue 33065, 4 November 1972, Page 15

Allende’s ‘Cabinet of appeasement’

(N.Z. P.A. ‘Reuter—Copyright) SANTIAGO, November 3. Chile’s Marxist President, Dr Allende, has tried to appease both Right and Left by bringing trade unionists and military men into his Government in a Cabinet reshuffle.

The surprises, m last night’s shake-up, which brought eight changes to the Cabinet of 15 members, and a promise of three more soon, were the appointments of the Army Commander-in-Chief as Minister of the Interior, and a Communist union leader as Minister of Labour.

It is the first time in Chile’s history that the key home affairs portfolio has been given to a member of the armed forces; and it is the most important restructuring of the Left-wing Popular Unity coalition Government since Dr Allende took office exactly two years ago.

The remodelled Cabinet retains the balance of the old one, the Communists and radicals each losing a Minister to make room for the soldiers, and one of the two Independents disappearing. But Dr Allende’s own Socialist Party has become the only partner to hold four portfolios. The reshuffle comes while the country is enduring its fourth week of an employers' strike against the Govern-

ment which has prompted the imposition of military rule on most of the country, the requisitioning of essential goods and transport facilities, and a night curfew on three provinces, including Santiago. General Carlos Prais Gonzales has resigned temporarily from his post as Army Commander to take over the Ministry of the Interior from Mr Jaime Suarez, a Communist.

The other military men brought into the Cabinet are Rear-Admiral Ismael Hueria, who becomes Minister of Public Works, and an Air Force commander, General Claudio Sepulveda, who takes the mining portfolio. The union leaders entering the Cabinet are Mr Luis Figueroa, the Communist president of the Central Workers’ Federation — and an outspoken militant despised by the Right — who becomes Minister of Labour; and Mr

Rolando Claderon, Socialist general secretary of the C.U.T., who becomes Minister of Agriculture. The appointment of the three military Ministers has received the immediate approval of the Leader of the Opposition Christian Democrat Party (Senator Renan Fuentealba). General Prais, who has repeatedly assured the Government that it was not in danger of a military coup when there have been rumours in that direction, said he would “apply the rigour of the law to quell excesses from the Left or the Right.” Dr Allende said at the swearing-in ceremony that the wave of strikes begun by lorry-owners who stopped work 24 days ago had “led us to a war economy which will weigh upon our country for many months.”

He estimated that the strike had so far cost Chile at least 140 million Chilean dollars (about $117.8m). “The intention was openly to assault the stability of the regime and institutional continuity, but nothing, and nobody, will stop the Congressional elections from taking place next March,” Dr Allende declared.

Yen speculation

Heavy selling of American dollars continued on the Tokyo foreign-exchange market today, as fresh rumours spread that the yen might be allowed to float soon. The rumours were promptly denied by the Ministry of Finance, which, however, indicated that foreign-exchange control might be tightened again. The Bank of Japan is believed to have bought another 113 million dollars today to support the currency at the intervention point of 301.10 yen.—Tokyo, Nov. 3,