Pepsi, The CIA And The Coup In Chile

In the shadowy corridors of Cold War politics, Chile became a battleground where the CIA’s clandestine operations were not just about containing communism but also about protecting U.S. corporate interests.

The CIA maneuvered through Chile’s political landscape from the 1960s to the 1970s, preventing Salvador Allende’s election, destabilizing his government after he ascended to power, and supporting the subsequent dictatorship of Augusto Pinochet, all while ignoring human rights abuses in the name of anti-communism.

In 1964, the CIA played a pivotal role in ensuring that Eduardo Frei Montalva, not the Marxist Salvador Allende, would become Chile’s president. With fears of a “red” Chile on the continent, the agency invested $2.6 million (adjusted for inflation, over $20 million today) in Frei’s campaign. This financial support was coupled with an extensive propaganda campaign, painting Allende as a Soviet puppet, ensuring his electoral defeat

When Allende finally won the presidency in 1970, his agenda included nationalizing industries, particularly copper, which directly affected U.S. companies like Anaconda and Kennecott, who had significant stakes in Chilean copper.

More notably Allende’s plans also threatened PepsiCo’s bottling operations. PepsiCo had significant investments in Chile, and Pepsi Chairman Donald Kendall was concerned about the potential loss of these assets under Allende’s regime. Kendall leveraged his personal connections with Richard Nixon, for whom he had once been a lawyer, to influence U.S. policy towards Chile. He facilitated a meeting between Chilean media magnate Agustín Edwards, who owned the El Mercurio newspaper chain and had business ties with PepsiCo, and high-ranking U.S. officials, including Henry Kissinger and Nixon. Edwards conveyed the urgency of preventing Allende’s presidency to protect business interests.

Agustín Edwards newspaper “El Mercurio” played a significant role in the events leading up to the 1973 coup against Allende. Shortly after Allende’s election in 1970, Edwards traveled to the U.S. to meet with Henry Kissinger, then National Security Advisor, and CIA Director Richard Helms. In these meetings, Edwards pushed for U.S. intervention to prevent Allende from taking office, suggesting a military coup as a solution. These meetings were pivotal in setting the stage for U.S. covert actions in Chile. It has been revealed through recently declassified documents that Edwards met secretly with President Richard Nixon in the Oval Office on September 15, 1970, just hours before Nixon ordered the CIA to prevent Allende’s inauguration. This meeting was not previously known to the public. El Mercurio received covert financial support from the CIA, authorized by President Nixon, to sustain the newspaper as an opposition voice against Allende. This funding was part of broader U.S. efforts to undermine Allende’s government through propaganda and economic destabilization. Documents indicate that the CIA provided around $2 million to Edwards’ media outlets to keep them afloat and active against Allende. The funding was used to ensure El Mercurio could continue its operations and propagate anti-Allende sentiments, helping to “set the stage” for the 1973 coup by influencing public opinion and supporting opposition forces. Even after the coup, El Mercurio continued to receive CIA support to promote the legitimacy of the Pinochet regime, framing it positively in the public eye. This included covering up or downplaying human rights abuses committed by the dictatorship.

CIA Operations Against Allende:

Operation FUBELT:

Track I: Political manipulation to prevent Allende’s confirmation by Congress.

Track II: More direct actions, including supporting a military coup. This included the tragic kidnapping and assassination of Army Commander General René Schneider, who advocated for constitutional loyalty.

The U.S. aimed to “make the economy scream” by blocking international loans, encouraging labor unrest, and supporting strikes to destabilize Allende’s government. They also maintained contacts with military officers, fostering coup plotting, with the CIA aware of these plans but not officially discouraging them. Despite these efforts, Allende took office, but the CIA’s clandestine activities continued.

Declassified documents reveal that on September 11, 1973, the military, led by General Augusto Pinochet, overthrew Allende in a coup. CIA briefings to Nixon on coup preparations show the level of U.S. intelligence involvement.

Officially, Allende committed suicide with an AK-47 during the coup, though this has been debated, with some suggesting possible assassination.

Post-Coup:

CIA and Pinochet:Support for Pinochet:

The CIA provided intelligence support and shared information to help the new regime consolidate power. Despite widespread human rights abuses, including torture, disappearances, and extrajudicial killings, U.S. support continued under the guise of anti-communism.

A Legacy of Intervention:

The CIA’s role in Chile is part of a broader history of U.S. special operations in Latin America:

Guatemala (1954): The CIA-backed coup against Jacobo Árbenz, aimed at protecting U.S. business interests, notably United Fruit Company.

Cuba (1961): The failed Bay of Pigs invasion to overthrow Fidel Castro.

Brazil (1964): Orchestrating a coup that led to a military dictatorship.

Argentina (1970s): Support for the “Dirty War” against perceived leftist threats.

Nicaragua: Involvement in the contras against the Sandinista government in the 1980s.

These interventions often led to long-term instability, human rights violations, and conspiracy theories, with the CIA’s actions in Chile becoming a stark example of how Cold War politics intertwined with corporate interests to shape a nation’s fate.

The CIA’s shadow over Chile from the 1960s to the 1970s illustrates a complex web of political interference, economic manipulation, and support for authoritarianism, all justified under the banner of anti-communism. This history not only left a mark on Chile but also adds to the contentious legacy of U.S. foreign policy in Latin America, where the pursuit of stability often led to decades of conspiracy, death, and political upheaval.

Leave a Reply

Your email address will not be published. Required fields are marked *