Pictures of three banks are shown on these pages. Top left, the Chilean Spanish Bank taken by the workers to expel former executives, and request its passing into "the area of social property". Top right, the same case, this time it is the Banco Continental. Finally, below, we see a group of Popular Unity members entrenched in the stairway of the Chilean Central Bank during a takeover demanding the throwing out of non marxist officials.

EXHIBIT NO. 3- Continued

THE CASE OF THE

PAPER INDUSTRY

Another of Allende's plans was control of the press. To this end he brought considerable pressure to bear upon the principal producers. of newsprint - The Compañía Manufacturera de Papeles y Cartones (CMPC). Once he had gained control of this industry, he and his followers thought, they could deprive the Opposition papers of supplies of paper.

The measures adopted by the Government towards engulfing the CMPC were many and varied. Government agents held meetings. with the syndicate leaders of the Company to try to convince them of the benefits of State ownership and to enlist their support for the Government's plans. The korker's reply was a rotund negative. The result of the voting for or against the Government's intentions was an 80% rejection.

The Development Corporation (CORFO) then whipped up a buying interest for the shares of the Company. The shareholder's response to this was the creation of a special shareholder's Defense. Committee, under the presidency of Mrs. Irene Larraín. This Committee fought a long and determined battle to thwart the Government's intentions with the result that CORFO was only able to buy up some 8% of the share issue.

In desperation, the Marxists tried violent means - seizure of vital sections of the plant to disrupt production and thus justify Government intervention. However, they met with determined resistance on the part of the workers, who set up their own Defense Committee under the leadership of José Castillo and fought off all attacks in such a manner as to merit the unqualified admiration of all Chileans. The organization of this Committee by workers defending their own sources of employment set the example for others and it was. eventually the strength of the labour unions which proved to be the decisive factor in the downfall of the Allende administration.

In addition to the foregoing the customers and suppliers of the CMPC also played their part in saving the Company from the clutches of Marxism. The former did so by paying their bills in advance and the latter by lengthening their credit terms. Thus the universal slogan "LA PAPELERA - NO" became a sort of battle. cry of those fighting against economic dictatorship and efforts to impede the free circulation of newspapers and other publications.

EXHIBIT No. 3- Continued

THIS IS HOW THE PEOPLE LIVED...

During the presidential campaign Allende and his followers reported on the most urgent measures the Government would adopt, if elected. "An emergency plan for the rapid construction of homes" was one of these measures; but the promise went no further. The sums where workers and the lower income bracket lived, were not cared for by the Government, who abandoned them completely. Fiscal funds for housing construction were dilapidated and the number of districts with houses as those seen in the picture increased considerably.

Misery, promiscuity and neglect existing in these slums, only concerned Allende before his election. It was a tool he used to conquer the Presidency of the Republic. Once this was achieved, the problem was abandoned. After all, he was already President and had nothing to fear. The people could manage alone. He no longer cared.

The same neglect was suffered by he who, according to the Popular Unity "would be the only priviledged of the régime": the child. Mothers were promised 1/2 a quart of milk per day to feed their children. They were told they would no longer walk barefoot in the mud nor be undernourished and prone to all kinds of diseases. The "Government of the People" had now arrived and all deficiencies would be corrected.

These false promises became evident soon after. Children

continued dying (infantile mortality increased from 86 to 130 per thousand) due to communicable dieases or mal nutrition or simple neglect. Mothers had to start out early if they wanted to stand in line to buy some food. The promised 1/2 quart of milk was delivered only before elec. tions; the rest of the time this half a quart purchased with the money of all Chileans; replenished the banking accounts of some favorites of the régime who sold this milk, without scruples to ice-cream factories, shop or the various Food Supply Boards controlled by marxism.

The sad look on the face of this child, is the same sadness found on the faces of thousands of children living in slums, playing with mud amd drinking dirty water. Or perhaps drowned or run over or even burned while their parents and brothers stood in line for something to eat. Nothing of what had been promised was finally delivered, and the "priviledged" of the régin.e continued to live and die in their shanty towns where more than six are housed in a room to live, eat and sleep.

In other places things were different; but the people ignored it. They were unaware of what happened, and how a member of the Popular Unity lived in his own home. Nor what happened in the home of Salvador Allende who liked to call himself "The President of the workers and the people". Things were different in those mansiones...