REPUBLIC OF CHILE

Hawke's Bay Tribune, Volume XXII, Issue 147, 7 June 1932, Page 8

REPUBLIC OF CHILE

MODIFIED SOVIET FORM CONFISCATORY TAXES. MONOPOLISTIC POWERS. Santiago, June 5. The formation of a Government with marked Socialistic tendencies of “a modified Soviet form” is outlined in a manifesto issued today, which gives the Government monopolistic powers over the major industries, including oil, matches, alcohol, sugar, iodine, and tobacco. The programme also aims at socialising tho banking system and hints at confiscatory taxes to promote a gigantic unemployment relief campaign, and tho confiscation of unproductive lands for the use of the unemployed. It is proposed to dissolve the great nitrate corporation known as “Cosach, ” in which a vast amount of foreign capital is involved, including American and British.

Complete details of the programme assert that foreign interest and debt obligations, etc., will bo honoured. According to another message from Santiago, the' revolutionary Junta moved on Sunday to rebuild the Government a provisional president, da Vila. They prepared numerous decrees, enabling the first Socialistic Republic of Chile to take over immediately the productive forces of the nation, redistribute wealth by the imposition of confiscatory taxes on large incomes, and seize various private capitalistic enterprises, foreign and domestic. Alarm is expressed in foreign industrial and business quarters at the declaration of Government spokesmen that “we must get Chile out from under the yoke of capitalism, whether foreign or domestic, but chiefly foreign domination.” Foreigners said they expected wholesale seizure of their properties, particularly public utilities, mines and industries. British, German and French have large interests here. WASHINGTON CONCERNED BIG INTERESTS AT STAKE Washington, June 5. Considerable concern is felt in official circles over the developments in Chile. American investments there are estimated at between 650 million and a billion dollars. Pending official reports, however, the State Department wtihheld comment.