Nixon, Chile and shadows of the Cold War: United States-Chilean relations during the government of Salvador Allende, 1970--1973

In September 1970, Richard Nixon authorized two separate policies to impede Salvador Allende from becoming president of Chile, out of a fear that Chile would become another Cuba. Nixon's attempts to foster a coup went beyond previous administrations' involvement in Chilean politics. When both "Track I" and "Track II" failed and Chilean General Rene Schneider was murdered, Allende's inauguration was made certain, and the U.S. had to shift tactics.; The resulting "cool but correct" policy attempted to prevent the consolidation and success of Allende's program and prevent its imitation elsewhere. National Security Decision Memorandum 93, of November 1970, set the broad outlines of a policy which would seek to diplomatically isolate Chile, financially support the Chilean Opposition, rebuild ties with the Chilean military, cut U.S. aid and restrict international financing. Financial support to the Opposition was generous, but the results of diplomatic initiatives and financial constraints were questionable. The one area in which the U.S. could successfully exert pressure was through the negotiations over the inherited Chilean foreign debt.; The debt became the lever which the U.S. utilized to motivate Allende's government to negotiate over the primary issue of concern to the U.S.---compensation for the expropriated U.S. copper companies. Chile's Allende Doctrine enabled that government to deny compensation to the copper companies, which had earned "excess profits" in past years. The U.S. could not ignore the potential ramifications for international law and U.S. investments overseas were Chile's actions to be emulated.; Negotiations over the debt gradually yielded to negotiations over copper compensation, which placed the Chilean government in a dilemma of alienating its own Left if it agreed to the U.S. demands. To resolve this dilemma, Ambassador Orlando Letelier advocated arbitration under a little-known bilateral treaty drafted by William Jennings Bryan, which the U.S. opposed since it was non-binding. As negotiations proceeded, however, the two sides inched closer to an creative accommodation. What potential there was for diplomatic accord on the issue became moot, as Chilean military officers acted on their own and overturned Allende's Via Chilena on September 11, 1973.