Chile’s military dictatorship, one of the most brutal regimes in the hemisphere, has just won a new ally. Canada’s eighth largest corporation: Noranda Mines Ltd. What’s Noranda doing in Chile? Getting its share of the most important natural resources of the Chilean people for one thing. For another, making the biggest economic news that has hit the government-dominated Chilean press in over two years. And as a consequence, giving an economic and moral boost to a regime that has been criticized for its economic, political and social repressiveness. And it all started here — in To- ronto, Canada — where Noranda ' Mines Ltd. decided late last year to work in partnership with the Chilean military junta in the de- velopment of a new $350-million mine and smelter at the An- docollo deposit several hundred miles north of the capital city of | Santiago. REPRESSION CONTINUES Since taking power in the bloody coup of September 11, 1973, the junta, under the leader- ship of General Augusto Pinochet, has earned an unparal- leled reputation for repression of human rights. Repeated denunci- ations by international bodies — the United Nations, the Interna- tional Labor Organization and the World Council of Churches — have gained freedom for some of the junta’s opponents, but have not lessened the widespread de- gree of repression: the dismissal of thousands of workers; the ar- _rest, torture and murder of union leaders, political activists and sympathizers of the former gov- ernment of Salvador Allende; the destruction of press freedoms; the suppression of all political and workers’ organizations; the mur- der of democracy. Meanwhile, the junta’s much- publicized ‘‘shock treatment”’ for economic recovery has failed: inflation hovered at 340% in 1975 while purchasing power and pro- duction continued to fall. Hopes to attract foreign investors have not materialized as transnational corporations express their scepti- cism that the regime is all that sta- ble — or profitable. And even the great pillars of economic support for the regime — the international aid and lending institutions — are hesitating. A recent $33-million loan from the World Bank to Chile’s copper industry was em- barrassingly delayed by debates over human rights, and finally ap- proved without the support of most Western European nations. Even military aid for the junta re; ceived a blow by the U.S. Sen- ate’s vote to suspend all such assistance. NORANDA MOVES IN And then, in the middle of all this, along comes the announce- ment of the largest single foreign investment in Chile since the coup d’état. From Canada’s own Noranda Mines. Noranda, of course, is no stranger to Chile, nor to pulling off complex international negotia- tions and investments. The com- pany opened a Chilean subsidiary — Chile Canada Mines — in 1964, but dropped the $5-million in- vestment during the Allende gov- ernment. Immediately after the coup, Noranda was back on the scene, pumping another $600,000 into their former subsidiary and in this way giving the junta one of its first capital transfusions. At the same time the World Bank selected Noranda to assess -NORANDA GOES TO CHILE holding hands with juscism the future of the Chilean copper industry, ajob which revealed the close connections the company maintains with that giant institu- tion, and which also gave the company an inside track with the junta in scouting out anew copper investment. The inside line seems to have paid off. According to the trade publication Metals Week the long delays by the junta in selecting an international com- pany to develop the Andocollo deposit were overcome when top Noranda executives flew to San- tiago in the company’s private jet to ‘‘huddle’’ with Chilean negotiators. 3 The contract includes a $250- -million investment in the de- velopment of an open pit mine, to be operational by 1979, and a ‘further $100-million for the con- struction of a smelter by 1980. The mine will increase Chile’s copper production by over 8% and has an expected life of at least 25 years. Noranda is enthusiastic about its latest venture. Mr. W.F. James, executive vice-president of Noranda, confirmed that his company had acquired the ‘‘plum’’ — of the existing untap- ped copper deposits, Andocollo is the easiest to develop. Adds Mr. James: ‘‘Our exploration people have been down there for quite a as long time and they say it’s good looking ground.”’ Good looking ground indeed. Besides Noranda, at least five other Canadian mining firms — including Falconbridge Nickel Mines, Placer Development and COMINCO — and multinational corporations from the U.S., Ja- pan and Europe are scouting other Chilean deposits for future investments. THE JUNTA IS HAPPY No wonder then that if Noranda is enthused, the Chilean military junta is ecstatic. In an- nouncing the selection of Noran- da, in the ClA-funded El Mer- curio newspaper of Santiago, Chile’s rulers stated clearly how they see the events: ‘‘... the ag- reement reached with Noranda Mines, in the present national and international conjuncture, reiter- ates the confidence that foreign in- vestors are demonstrating toward our country...” Although the Noranda invest- ment is significant in itself, there are many other bonuses for the junta. The announcement be- stows upon the junta a degree of respectability and business confidence that could result in several more major copper in- vestments. And such investments by large multinational corpora- tions are essential to the junta’s survival: they will bring in new earned an unparalleled reputation for repression of human rights. PACIFIC TRIBUNE—APRIL 30, 1976—Page 14 ‘capital to offset a large deficit in Chile’s balance of payments; they will add to government revenues, of.which copper already accounts for 70%; and they will increase the junta’s foreign exchange re- serves, enabling it to purchase everything from toothpicks to tor- ture racks. An added bonus still, is Noran- da’s offer to help the junta raise its part of the investment money. Besides meeting capital commit- ments for its own 49% interest in Andocollo, Noranda staff, con- tacts and energies will be put to work to approach private and public credit-givers to finance the junta’s 51% stake. COULD GET GOVERNMENT SUPPORT And Noranda is well suited for the job. With assets climbing to the $2-billion figure and opera- tions in over thirteen countries, Noranda is a giant, inter- nationally-known, multination- al corporation travelling in high political and financial circles. The corporation has directors who link it with no less than three of the largest Canadian chartered banks, a potential source of financing for itself and the junta. One of its executive vice- presidents, Adam Zimmerman, has been a long-time director of the Canadian government’s Ex- Chile’s military dictatorship is one of the most brutal in Latin America. General Augusto Pinochet has ~ tinuing Canadian complicity — _ ‘multinationals. Now, with “| port Development. Corpora which could give export credits @) the junta for the purchase df Canadian equipment. The ED¥) could also insure the Noranda iff vestment against expropriation] — a hedge that the company migill want despite its apparel confidence in the junta. Throug!) commercial secretary in Santiag)} has already been helpful in closit the Andocollo deal — and will} top-level deputy ministers from the Department of Finance, E# ternal Affairs, as well as the Prest dent of the Canadian Intern* tional Development Agency. ~ That Noranda is so well connected with government is 1 casual fact. The Canadian gov ernment’s support in the past fol World Bank and Inter-America Development Bank loans to thé Chilean junta foreshadows com) possibly for the use of thes channels to finance a part. Noranda’s Andocollo adventure So a final added bonus in tht} deal becomes the strength Noranda’s access to private and public funds, and its potential ® involve the Canadian governmet! directly in a project which supy ports a regime that External 4” fairs Minister Allan MacEachély claims to denounce. The possibl direct involvement of the Café) dian government, and the usé d . taxpayer dollars, makes the issue a public one, demanding the 4! tention of Parliament and Can# dian public opinion. gy ACCOMPLICE WITH THEJUNTA So there it is. A company whi? may have been chosen by the junta over the offers of other mu tinationals specifically because! Canadian identity will arouse le international public opinio against the project. As a conscious partner in the deal Noranda cannot claim ign! ance of the junta’s labor polici¢® thé United Nations Commiss!% on Human Rights (Februaty) 1976) states that fundamenl™ human rights, including freedot of expression, freedom of asso™ ation, the right to work, and &% right to hold trade union ele@ tions, bargain collectively and 4 strike, are still heavily restrict® or denied in Chile. These policies whose repression of laD® assure Noranda great profit turns in an ugly hum@ environment. a Noranda’s Andocollo invé@& -ment is an action that flies in © face of history. Only five y&) » ago, after decades of debate, ™| Chilean Congress unanimously} right, left and center — voted”) nationalize the copper indus’ until then controlled by fore) Congress dismissed, the um) repressed, the press tailo™) democracy dead, Noranda co? | in to exploit the resource her] of the Chilean people who liv; war with the present mili dictatorship. Af The story about Norandé 7) entry into Chile is reprint) from Chile Report, produced Mt the Latin American Workif Group. The newsletter &" | with an urgent appeal for pu? protest to top this deal which | | expected to be signed in April. a Further copies of Chile "7 port may be obtained by wit’) to the LAWG Library, Box 63” Postal Station ‘A’, Toronto 1;)} at!