This document, titled “Special Report by the Operations Coordinating Board to the National Security Council” was written on November 26, 1958, and is an overview of the general status Latin American relations. As such, it contains valuable information on the state of Chilean – US relations that were not provided in the previous, as well as reflects the success or failure of the outlined plans in the previous document. It is clear in the document that communism in Chile may have the potential to rise, given legislation changes and the general difficulties of the Alessandri administration.
This is significant because it further fleshes out the United States involvement, and indicates that they were relatively, but not entirely hands off in the 1958 election. There is also significance to the threat of communism described here through discussion about Allende and Alessandri, indicating increased concern about communism in Chile after the close 1958 election
4. Major Problems Confronting the United States.
f. Soviet Bloc and Communist Party activity, aimed at fanning anti-American sentiment and stimulating more “neutralist” policies in Latin America, continued to make headway in the area despite some setbacks such as anti-Communist electoral victories in Brazil and Chile. The Communists continued to increase their influence over organized labor in most countries…
10. The Overseas Internal Security Program (OISP)—
Little progress was made during the reporting period on the implementation of the courses of action listed in the OISP Annex to the Latin American Operations Plan, dated January 17, 1958, except in Brazil and Bolivia. While an organization has been established in Guatemala to combat communism, it is too early to judge its effectiveness. In Chile no further action was taken pending the fall elections and the installation of a new government…
14. Major Economic Problems
a. Balance of Payments and Inflation
…The Bolivian and Chilean stabilization programs are running into serious troubles and inflation has been continuing…
15. Political Instability
… In contrast [to political instability elsewhere in Latin America], the election of Jorge Alessandri, the pro-American, free enterprise candidate as President of Chile, and the inauguration of Alberto Lleras Camargo as President of Colombia, represent solid advances, although each faced formidable economic and political problems…
18. Labor
…The recent repeal of the Law for the Defense of Democracy in Chile gave greater scope for overt Communist actions and unless this trend is checked in the forthcoming Alessandri administration, Communism may exert greater influence over Chilean labor…
20. Communist Party Activities
In the Chilean presidential election, the Communists made common cause with the Socialists and gave their full support, suppressing Communist revolutionary objectives, to Senator Salvador Allende in the unrealized hopes of bringing to power an anti-American “neutralist” government there.
21. United States Government Operations.
…In Chile, President Ibanez’ recent decision to accede to the repeal of the Law for the Defense of Democracy, thereby re-legalizing the Communists’ activities, underscored the limitations on United States efforts to assist in the control of Communist subversive activities…
Foreign Relations of the United States, 1958-1960, American Republics, Volume V, General United States Policy Towards Latin America, eds. N. Stephen Kane and Paul Claussen (Washington: Government Printing Office, 1991), Document 3. https://history.state.gov/historicaldocuments/frus1958-60v05/d3
