**How successful was President Alessandri of the Conservative Party in solving Chile’s economic problems?**President Alessandri was unsuccessful. The attempts to stimulate the economy ended with an unbalanced balance of payments and rise in inflation.
**How did the Cuban Missile Crisis alter the United States’ policy in Latin America?**As the US desired to encourage the reform movements, it secretly financed the Christian Democrats as an alternative to the social revolution. As a result, the Christian Democrats were supported enough by the US (with a strong backing by conservative parties) to enable Frei to win the 1964 election.

**What was Frei’s “revolution in freedom?”**An attempt to resolve the extreme inequality in Chilean society without an extreme class struggle. In the reform he was faced with inflation, stagnation, a domestic market too small to accommodate an efficient mass industry, and an industry/agriculture incapable of supplying the basic needs. Frei proposed agrarian reform, tax reform, and other measures to redistribute income to the lower classes. 
**Why was it not successful after 1966?**Frei was too caught up in the need to appease his political party members and the economic decline and set reform aside. Because Frei’s reform depended on the healthy economy (where the government would be able to give out benefits to the lower class without injuring the middle class or altering social/economic structures) it was not able to thrive under the economic decline.
**How much support did Allende have upon his election in 1970?**Allende only received 36% of the vote [of Socialist, Communist, and Radical Parties in the Unidad Popular] as candidate of the left coalition. The right was unable to join with the left in response to the extreme ideals of the Unidad Popular. The election was taken to Congress where the issue was publicized and resulted in Allende being approved as president.

**What conditions favored the program for socialism of Allende’s UP (Unidad Popular)?**Political conditions had appeared favorable for Allende because of the assasination of General Rné Schneider in October 1970. General René Schneider was the commander in chief of the army and had kept it neutral just before Allende took office. It was probable that the UP would receive the cooperation of the Christian Democratic Party (who had been left after the UP broke off and formed a coalition with other leftists).
**What was the program that united the UP coalition?**The UP (the coalition of leftists who had left the Christian Democratic Party in response to Frei’s failure to reform) and its allies in the left [THE UP COALITION] united behind a program that called for a progressive take-over of large foregin companies and monopolies in the fields of : commerce, industry, land distribution, and expropriation of all landholding over 80 hectares (basically large amounts of land go to the state).
**What groups and conditions did not favor the UP?
**It did not have a majority in Congress: both the judiciary and the Controlaría General (the government’s fiscal arm) opposed Allende’s reform.The entire domestic economic establishment, foreign interests, much of the officer corps of the military & national police, and the Catholic church were also against the UP.Anti-UP political coalition (Confederación Democrática): controlled almost all of Chilean media, ⅔ of television stations, 95% of radio stations, 90% of newspaper circulation, and 100% of weekly magazines
What was the “old problem” of reform? The “old problem”: how to satisfy the claims of both the working class and the middle sectorsWorking class: was even more radical and aggressiveMiddle sector: worried that their interests were being threatened by the structural reforms by the UP

**How did the UP’s public spending improve the economy in 1971?**It stimulated demand and industrial production.The government instituted a large program for public spending with an emphasis on labor-intensive projects (housing, education, sanitation, health) while also establishing price controls. The price controls were supported by local housewife supported price and supply committees. The rate of inflation fell and real income rose as a result.
**What economic problems damaged the economic program in the long run?**The depletion of stocks, outflow of foreign exchange to pay for the import of consumer goods, and fall of profits all proved to be very damaging to the economy (because it was essentially a market economy).
**Which two problems arose for Allende in 1971?**Copper prices declined sharplyLead to an imbalance of trade and depletion of foreign exchange reservesExpropriation of the Gran Mineria in July 1971Stopped the flow of private investment capital from the US and put an end to the large amounts of credit from agenciesCredit came from places like: Agency for International Development (AID), Export-Import Bank, Inter-American Development Bank, World BankSoviet Bloc, W. Europe and other Latin American countries provided credit but it was not enough to compensate for the loss of US loans

**What was the biggest roadblock to progress and why?**Being unable to satisfy the working class (who wanted structural reform) and the middle class (and their special interests)Chile’s inefficiently managed agricultural production. The agricultural production neither raised enough to feed the country’s inhabitants nor provided employment for the large pool of rural labor. The inability to solve the agricultural crisis was only encouraged by a hostile Congress who forced Allende to operate with the reform laws inherited from the Frei administration (remember! The reforms implemented by Frei resulted in an unhappy and radical group of workers who as a result deviated from Frei towards more radical Communist and Socialist ideals).Allende has liquidated the system of land tenure dominated by large rural estates (latifundio system). Expropriation and redistribution continued but with cost to production. The amount of land under cultivation decreased by 20% and the harvest of 1972-73 was poor.
**How was the United States involved in Chilean politics?**The CIA spent $11 million between 1862-70 to prevent Allende from getting elected. With authorization from President Richard Nixon and Secretary of State Henry Kissinger the CIA also spent $8 million from 1970-73 to destabilize the Chilean economy.
**What actions did Allende’s opponents undertake in 1972?**They took advantage of the growing economic crisis in late 1972 to start a program of sabotage and direct action that included an employer’s strike in October, a strike of truck drivers (subsidized by the CIA). The combination of strikes developed into a full-scale lockout by a majority of Chilean capitalists.
**How were the officers of the Chilean military divided in 1970?**They were divided into two clear factions: a significant conservative wing and a moderate wing who were sympathetic with the type of reform that the Christian Democrats enacted. The successor to the neutral General Rene (who was assassinated) was General Carlos Prats who was among the moderates.The Chilean military was significantly influenced by the US as many officers had counterinsurgency training in the US/Panama Canal Zone and the US military aid continued even when the economic aid ended. This encouraged the military’s anti-communist stance and the opposition towards Allende.
**What happened on June 29, 1973 and how did workers, Allende, and the armed forces react?**The balance of forces in the military shifted towards the conservatives and a premature coup was defeated by loyal troops (to Allende) by General Prats.Workers: After the defeat, workers called for the occupation of factories and distribution of arms among them.Allende: Allende took to increasing efforts to reach a compromise with Christian Democrats, relying on armed forces to maintain law and order.Armed forces: The armed forces raided factories in search of illegal weapons while making no effort to disarm rightist paramilitary groups.Control of local areas was essentially passed from the UP to the armed forces and the government seemed paralysed in the face of a growing right-wing. General Prats resigned after pressure from colleagues and was replaced by a successor of Allende’s choosing.
**What were the results of the coup of September 10, 1973?**After Allende rejected a demand, of resignation, by the armed forces the army and air force attacked the presidential palace. Allende, who had promised not to leave the palace alive, committed suicide after broadcasting a final message to the Chilean people and despite some resistance the left was utterly crushed within a week.