A Decision Without A Strategy: Excess Profits in the Nationalisation of Copper in Chile
Executive Decree No. 92, signed by President Allende on 28 September 1971, was the single most important decision taken by his government and the one which provoked the greatest international interest.1 By virtue of this decree, the government determined the amount that should be deducted, by concept of excess profits, in the computation of compensation due to three mining companies owned by the Kennecott Copper Corporation and by the Anaconda Company. The exercise of this power was part of an intricate procedure established by the Constitutional Amendment of July 1971, which nationalised the copper industry in Chile. As one would expect, the left-wing parties in Chile greeted this reduction of compensation with enthusiasm, while the companies affected by this measure described the action of the Chilean government as confiscatory.2
KeywordsConstitutional Amendment Copper Nationalisation Socialist Party Copper Industry Excess Profit
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