3. - usaid

industrial and comercial sectors as businesses faced cutbacks forced on
them by the drought.
No conclusive scientific evidence could be found for the continued lack of
rain. There were two theories expressed. One blamed France's atomic
testing in the South Pacific that sheds radioactive fa1:Lout across most
of South America. The other held that a change in the course of the
Humboldt Current (a cold oceanic current sweeping north along the west
coast of the continent fYom Antarctica) is altering Chile's climate.
Meteorologists conceded the Humbolt Current may bear on the problem to
some degree. The Current's position close to shore in northern Chile
created the Atacama Desert because its icy waters keep prevailing south
and southwest winds from picking up moisture as they blow landward across
its 150-mile width.
ACTION TAKEN BY THE GOVERNMENT OF CHILE
Initially (June 1968) the Government of Chile declared the five provinces
of Coquimbo, Aconcagua, Santiago, Valparaiso and OIHiggins as emergency
zones. As a result of worsened conditions, President Frei subsequently
declared the country was in a state of national emergency and on July 1
under Decree 340 established a national executive drought cormnittee
headed by the Minister of Interior. Programs of assistance including
work projects were begun to help the most needy victims of the drought.
In general, the main river valleys, such as Elqui in Coc~uirbo; the
Aconcagua in Aconcagua; the Maipo in Santiago, tho@ wlth greatly reduced
flow, permitted essential irrigation for Nt, vegetab:Le and vineyard
cultivations to continue at reduced levels. In these areas, most agricultural
workers remained on the larger private farms and despite
deprivation in terms of pay and support, few qualified for distress food
assistance. Food relief, however, was distributed in the more remote river
valley areas or to those farming families in the arid coastal range area
which separates Chile's main central valley *om the sea. The selection
of the most needy families was based on well-defined hadship circumstances
and it was determined that a large majority of them wou:Ld require aid until
the next normal rainy season to begin about April 1969.
The Government drought relief programs were established for four major
purposes: (A) to come to the aid of the affected farmelps; (B) to avoid
unemployment; (C) to stimulate production in other sectors in order to take
up the slack in the agricultural sector; and (D) to program the use of
water, electric energy and foodstuffs in the Central Provinces. Funds were
allocated as follows: 12 million escudos for emergency plans in areas
mentioned in point D; 45 million escudos for imports of machinery and foodstuffs;
70 million escudos for additional credits to famers; and 50 million
escudos for subsidies, rebates, discounts and debt relief to farmers.
Total in dollar equivalent--about $24.6 million. In adclition, use of 53
million escudos (about $7.4 million) was planned to provide employment in
affected areas, and consideration was also being given t;o an emergency
investment by the Government of 350 milli.on escudos (about $48.6 million)