CHILE: Progressive Socialism

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Personal interests would logically prefer to maintain the former situation under which the capitalistic minority reaped the greatest profits from economic activities and the masses got crumbs hardly sufficient to feed themselves and continue to work.

It will be necessary to proceed with "a benevolent dictatorship," breaking up the private interests to realize the plan I have outlined.

Building Socialism. As they read this program, socialites who used to clink cocktail and champagne glasses with Ambassador Davila in Washington recalled the eagerness with which he read, studied and talked about Soviet Russia—a hobby considered at the time mere well-bred eccentricity.

On its face the Chilean Program is a much diluted form of Communism, similar to that professed today by Josef Stalin who has stated officially that Russia is now only "building Socialism." Out of Davila's sentences leap such typical Stalin catchwords as "socialization of all economic processes," "production through cooperation instead of competition," "profits will go in small part to individuals but mostly to the State."

These phrases describe the actual situation in Russia, not in Chile. In Chile, a land as long and slim as a string bean, the resources do not exist to defy World Capitalism. No battle fleet could seriously menace the Union of Socialist Soviet Republics which sprawls over one-sixth of the earth, but a second-rate navy prowling up & down the Chilean coast could pulverize every city, town and hamlet.

Observers waited to see whether any other South American land would follow Chile's Socialist lead, revolutions being notably contagious. While Great Britain waited, her House of Commons cheered a Foreign Office statement reminding Chile who rules the waves: "His Majesty's Government takes the most serious view of the Chilean Government's confiscatory measures and . . . will strongly support a demand for full compensation to British interests affected."

"I Have Resigned." Meanwhile Chilean newspapers began complaining bitterly that Don Carlos Davila had taken no step against "Cosach," the $375,000,000 Chilean nitrate monopoly created by Manhattan's Guggenheims. Because Don Carlos when Ambassador had assisted in the negotiations creating "Cosach" and had pooh-poohed Chilean fears of "Yankee Imperialism," his lack of ruthlessness toward "Cosach" began to seem suspicious to some Chileans. Was the Stalinism of Don Carlos genuine, they wondered, or was he dragging a Red herring through the streets of Santiago, prating of "progressive Socialism" in order to head off a real Socialist revolt?

Behind locked doors an angry scene took place. When the doors opened at last out strolled Don Carlos wearing a poker-face smile. To flabbergasted correspondents he announced: "I have re-signed." He refused to make any explanation, as did other members of the Government. He called his limousine, drove home.