Davila's Plan

Fortnight ago a solemn, resplendent group of bishops, generals, frock-coated cabinet ministers and economists assembled at Santiago's Presidential Palace to watch Provisional President Carlos Davila sign something. The world learned only last week what it was that he signed: Chile's long discussed Emergency Plan by which the Davila Government means to embark on a program of "sane" state Socialism. Nothing could insult President Davila more than to call the plan hastily conceived. An editor who dubbed it "Chile's Five-Minute Plan" was promptly flung into jail last week.

Six great government corporations will be set up almost exactly like the Soviet trusts of Russia : a State Industrial Corporation, a State Foreign Trading Corporation, a State Mixing Corporation, Transport, Construction and Agriculture Corporations. To finance and get them into operation $160,000,000 was raised by forcing the central bank to buy an issue of treasury bonds. All six corporations are intended to win Chile's business from the hands of U. S., German and British firms, but unlike Soviet Russia there will be no direct confiscation.

The new trusts have their work cut out for them. The Foreign Trading Corp., financed at $50,000,000, must win Chile's commerce away from the foreign capitalists "who failed us in our hour of need," according to the government bulletin. Whether the $50.000,000 includes the creation of a Chilean merchant marine to compete with U. S. lines, the Davila Plan did not say.

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