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In the 1970 election, Senator Salvador Allende of the Socialist Party of Chile (part of the "Popular Unity" coalition which included the Communists, Radicals, Social-Democrats, dissident Christian Democrats, the Popular Unitary Action Movement, and the Independent Popular Action),[29] achieved a partial majority in a plurality of votes in a three-way contest, followed by candidates Radomiro Tomic for the Christian Democrat Party and Jorge Alessandri for the Conservative Party. Allende was not elected with an absolute majority, receiving fewer than 35% of votes. It became a war of classes, motivated by the central government. Despite pressure from the United States government, the Chilean Congress conducted a runoff vote between the leading candidates, Allende and former president Jorge Alessandri and keeping with tradition, chose Allende by a vote of 153 to 35. Frei refused to form an alliance with Alessandri to oppose Allende, on the grounds that the Christian Democrats were a workers party and could not make common cause with the right-wing.[34][35]
An economic depression that began in 1972 was exacerbated by capital flight, plummeting private investment, and withdrawal of bank deposits in response to Allende's socialist program. Production fell and unemployment rose. Allende adopted measures including price freezes, wage increases, and tax reforms, to increase consumer spending and redistribute income downward.[36] Joint public-private public works projects helped reduce unemployment.[37][page*needed] Much of the banking sector was nationalized. Many enterprises within the copper, coal, iron, nitrate, and steel industries were expropriated, nationalized, or subjected to state intervention. Industrial output increased sharply and unemployment fell during the Allende administration's first year.[37]
Augusto Pinochet
Allende's program included advancement of workers' interests,[37][38] replacing the judicial system with "socialist legality",[39] nationalization of banks and forcing others to bankruptcy,[40] and strengthening "popular militias" known as MIR.[40] Started under former President Frei, the Popular Unity platform also called for nationalization of Chile's major copper mines in the form of a constitutional amendment. The measure was passed unanimously by Congress. As a result,[41] the Richard Nixon administration organized and inserted secret operatives in Chile, in order to quickly destabilize Allende’s government.[42] In addition, American financial pressure restricted international economic credit to Chile.[43] The economic problems were also exacerbated by Allende's public spending which was financed mostly by printing money and poor credit ratings given by commercial banks.[44] Simultaneously, opposition media, politicians, business guilds and other organizations helped to accelerate a campaign of domestic political and economical destabilization, some of which was helped by the United States.[43][45] By early 1973, inflation was out of control. The crippled economy was further battered by prolonged and sometimes simultaneous strikes by physicians, teachers, students, truck owners, copper workers, and the small business class. On 26 May 1973, Chile’s Supreme Court, which was opposed to Allende's government, unanimously denounced the Allende disruption of the legality of the nation. Although illegal under the Chilean constitution, the court supported and strengthened Pinochet's seizure of power.[40][46]
Finally, a military coup overthrew Allende on 11 September 1973. As the armed forces bombarded the presidential palace, Allende apparently committed suicide. A military junta, led by General Augusto Pinochet Ugarte, took over control of the country. The first years of the regime were marked by human rights violations. On October 1973, at least 72 people were murdered by the Caravan of Death. According to the Rettig Report and Valech Commission, at least 2,115 were killed, and at least 27,265 were tortured (including 88 children younger than 12 years old). A new Constitution was approved by a controversial plebiscite on 11 September 1980, and General Pinochet became president of the republic for an 8-year term. After Pinochet obtained rule of the country, several hundred committed Chilean revolutionaries joined the Sandinista army in Nicaragua, guerrilla forces in Argentina or training camps in Cuba, Eastern Europe and Northern Africa.
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