j - 0- MEMORANDUM FOB Associate Deputy Director for Operations 0 SUBJECT Project Request for Amendment NotheBSantia StatiOn4 prOpaganda project was renewed for FY 1974' 'for #on 4 April 1973 The project whiCh used a variety 0 propaganda mechanisms to inform the Chilean and foreign public of the Allende govern- mantis efforts to impose a Marxist totalitarian government played a significant role in setting the stage for the mili- tary coup of 11 September 1973 _Prior to the coup the project s media outlets maintained a steady barrage of anti-government criticism exploiting every possible point of frittion between the_government and the democratic opposition and emphasizing the problems and conflicts Which were developing between the government and the armed forces -Since the coup these media 'outletszhave supported the new military government They have tried to present the Junta in the most positive light for the Chilean public and to assist foreign journalists in Chile to _0btain facts abdut the local situation 'v 2 As a result of the overthrow of the-Allende govern- ment the Poperation has had-to a dapt 1to 'the'new 'situ- ation and as undergone sOme important'changes It waS' _n tua ggreed with the f 3- _'to terminate a number of sb 3 Deepite this drastic cutback in project activities ' the cost of the projedt has risen significantly as'a result' of a drop in the dollar e5cudo exchange rate from approximate1y 2500 eScudOS'to one dollar in early September 1973 to the late November 1973'rategofi780 to one I station as well as the Embassy believe that'the dollar ra e is likely to drop even further to about 650 to one in the next few months In addition to the increasing value of the escudo in relation to the dollar the government's deCision to allow prices to 5 seek their true leVeI has increased publication costs about 255% in the past three'months ' - The project is there 0 4 essential in ena 11ng t'e Station to help mold Chilean public opinion in support of the new government and to influence the government throu h'g essuree exerted mass It'lS 'ere ore requeSted that Project be amended for an for FY 1974 praising total project authorization for FY 1974 tq I _a A financial breakdown of- Project costs for I July he through 30 Septgamber 1973 and the projected costs for 1 October 1973 '-thr'ough 30 June 1974' are provided in Attachment - it as                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu