A NEW CHILE

Hokitika Guardian, 7 June 1932, Page 5

A NEW CHILE

ON SOVIET LINES

FORMATION OF GOVERNMENT

(United Press Association—By Electric 1 eiegraph.— Copyright.;

SANTIAGO, June 5. The formation ji a Government with marked socialistic tendencies, in a “modified Soviet form,’’ ,:s outlined in a manifesto issued to-day which gives the new Government monopolist.c. powers over the major iiKlusa-.es, jnciuding tuc.se of oil, matches, alcohol, sugar, iodine, and tobacco. The new Government's programme a-li.-o .sociaUii‘C’3 the banking system.

The Governmeut hints at coufiscatoiy taxes to promote a gigantic unemployment re.'.el campaign; and at the confiscation of the unproductive lands for the use of the unemployed. Tile Government hints also that it will dissolve the great nitrate corporation known as the ‘‘Oosuch,’’ in which a vast amount of foreign capital is involved, .including that of American tttul British Capitalists. The complete details of the programme are not divulged. However, the officials (U'sdrt that the foreign interest and debt obligations, etcetera, will be honoured. The Revolutionary Junta moved on Sunday to rebuild the Chilean Government structure along Socialistic lines under Provisional President Davila,

They prepared numerous decrees, thereby enabling the first Socialistic •Republic of Chile to tak e over immediately the productive forces of the nation,. to re-distribute the country's wealth by the imposition of confiscatory taxes on the large incomes ; and to seize various private capitalistic enterprises, both foreign and domestic. Alarm is being expressed in the foreign industrial and business quarters of the city at the declaration of a Government spokesman that “We must get Chile out from under the yoke of capitalism, whether it be foreign or domestic ; but chiefly out of the yoke of capitalistic domination. Foreigners in Chile said that they expected the wholesale seizure of their properties particularly the public utilities, the mines, and industries.

British, Americans, German and French all .have large interests here.

U.S.A. CAPITALISTS ALARMED.

WASHINGTON, June 5.

Considerable concern is felt in the United .States official circles over the developments in Chile.

The American investments ther e are estimated at between 650 million dollars and a billion dollars.

Pending official reports, however, the -State Department has withheld comment!