CHILE: Sand in the Streets

To repudiate payment of most of Chile’s foreign obligations and to “bust” the Guggenheim-controlled Cosach (nitrate trust) was the campaign pledge last week of two out of Chile’s three leading candidates for the Presidency.

The third candidate won. Guggenheims, foreign bondholders and all U. S. citizens with Chilean interests breathed easier.

Even amid frenzied electoral strife last week, the Chilean Government lent friendly ears to U. S. Ambassador William Smith Culbertson. While the welkin rang with anti-U. S. slogans, he signed with Chilean Foreign Minister Luis Izquierdo an agreement, retroactive to May 22 last, which lowers Chilean tariffs clapped on imports from the U. S. at that time, means that Chile grants the U. S. “most favored nation status.”

Juan Esteben Montero, winning candidate and President-elect, had more than the sunshine of U. S. favor to help him win. A Conservative, a former University professor who had played no part in politics until the fall of Dictator Carlos Ibanez seven weeks ago, he was the official candidate of the Government party; and, although Chileans cast the votes, it is the Government that counts the ballots. Moreover Candidate Montero had the picturesque support of nearly 50,000 guasos (cowboys) in flopping ponchos and silver spurs who rode in from the country districts, threatening destruction to anyone who should oppose him.

The opposing candidates were Arturo Alessnndri, a former President of Chile and Manuel Hidalgo, Communist. Chilean hard times were expected to bring Communist Hidalgo many votes, but his rumored connection with the ineffectual Chilean naval mutiny lost him much popular sympathy. Candidate Alessandri had put through (when President) Chile’s broad labor laws, workmen nocked to him.

Election day was not dull. Expecting trouble, workmen early spread yellow sand over Santiago streets so that charging cavalry should not slip. The Government mobilized the full force of 18,000 mounted gendarmes and sent them picking their way over the sand about as heavily armored as any policeman could be: a long lance in one hand, a sabre at the saddle bow, a rifle across the back, a pistol on the hip.