Announcement of Public Release of Report on Mission to Chile on December 1, 1952

() ,, !I :rnTERNATI01'At :&\NK,FOR RECON$TROOTI0N AND ,,DEVELOPMENT; FOB '!'BE PRESS FOB BEL'FASE '\ (I 1:00 P.M.,) Monday\. // PNSB Release No. 3Ja Decet11ber 1, 19;2 5) Reooimnende.tions for a broad prosram of agr1cultural'developtnent 1n Chile· were 0 niede public today in the report of a mission sent to Chile et the request of the Govern..rnent. The mission was sponsored Uy the- Food and Asr1culture Organization o:f the United Nations and the International Bank for Reconstruction and Development. Eugene R. Black, President of the1 International Bank, and Sir Herbert c:Sroadley, Deputy Director-General of the FAO, presented the report in Washington today to. Senor Felix N:!.eto del Rio, Chilean Ambaseador tct.the TJnited States, for transmi t\al to the President of Chile. The lD!ss:ton under the leadersM.p of Egbert deVries, Chief, Economic Division, (> of the Barik:•s Technical Operations Department, spent four months in.Chile in 1951 studying agricultural problems and policies. Before final formulation of the • mission's recommendations, Dr. deVries returned to Chile for four weeks in June-July 1952 for further study and consultation with the Government. In their letter trensmittine the report, the President of the Bank and the Director-General of'FAO express tlle belief that the report can llelp the dovermnent subEJtantially in determining the general lines of the country's future ,prosrmn tor asrtcultu,re and the economic policies and administrative arransements necee,sary for ca~ying out the i,rosr•• The1~ letter points out, however, that the report can be useful only if effective action is taken to arrest inflation. "It 1a our considered opinion that unless the inflationary process is arrested, the distortion to whieh the country's eeonO!lly has been eubJected, wiU srow worse, and will con- stitute a most serious obstacle to tbe execution of any program Of development. We hope that it Will be the first objective or Chile's new government to br1ns //rr I • :tnflAl.t,._ tQ e halt, and thereby to ~~it e~onomic forces to perto$ their function t/. ot 8111411)$ production into the most effective channels." (,] 0 - 2 ... • In Nv1eW1ng the present condition (>f agr:lqulture in Ch1;e, the :report points 0 ~ . )) c>u.t that tor more than a decade Chile has been ~rsoing a pd~iod of,rapid development ,and in flCent years \\ .. has made great ·strides :in expanding (/industry and -: \/ electric) power. Canperable' deve1opn8nt hes not taken pl~ce i~ agriculture. The ') f) <.:> ' ·-~ growth of populati~/ and a risins standard of 11v111f! have broiisht about a steady increase in the ce>nsumption of food. Asrioultural productionc,,;'j however, he.a lagge~ · o I behind with the'' result that food imports have risen sharply. If a better balance is to be achieved 1~ the Chilean economy, 1ntenEJ1v• efforts must be ~de to put ~nto "'~> ;) ettect a prograJn for the expansion and improv~nt of agr;-iculture. With. euQh a l,j \\ ,pro13ram the mission believes that the Chilean nation can economically meet its ~q11irements for food from its own soil. The mi~si~ augsests that the program aim at increasing ~gricu)tural output- river the next eisht years to_a level of 38.9~ above the 1945-49 period. • First emphasis in the report is placed on the need for the Government to adopt a consis,tent lons-te,rm agricultural poli~y, designed to create and ~intain suffi- cient confidence BlllOng :farmers so that they will el!lbark upon a vigorous exi,ansion prosranh Amons other actions, this wj.ll require attention to policies HSardillS inflation, agriouJ.tural prices and exchange rates, end to the coordination and strengthening of the various government activities· dealing with esr1culture, parttculerly researcb., extension services end farm credit. Other 1mportpnt re- COlllllend&tions :f'or governmental action relate to the :ltiprovetnent of roads, railways ancl.ports as they affect agriculture, and of facll1t1es· for proceasins, atorins and tnarket1ng a~cultural produete. Chief t,mong the "c~n.4attons for direct tQeth,ods ot increasing agricult1.1J9al ~tput aN the. expansion of the area uncler cultivation and the 1mprove•nt of f~ns me't;nods.~«-' To ~,provide additional land for agricultural purposes, the m.asion 0 · • ti-o,o~es that 1n.,t4e" next eisht yean Chile should brJ~ under 1rr1set100 an adcli- ti(.)Ml ·,00,000 aci,sa" recla1Jn and a.rain 750,000 acrts and brins into ptod,uct!on  ('f 3 .. G 0 250,000 mo:re acres of tarm ieq'ld now lying fallov. 0 ,, D • for the increased px-oduction at crops and &nimals --::;c '\] It is PQinted' out that bet'ter provision or trder, aha1:ter tor,,an1mals, and disease c ~ l ~oul.d ifiCrei!se milk production by 551, and meat p)uction by ~ in ei~t · ) f years. Amons tb,e u chief 'propo-.ls (, for crop 1mprovemeg.t erJ the increased use ot Jam machin(!ry, improvement of seeds, and ?etter pest, disease and weed control •. , 0 (( '' ' 0 ,, 11 Fisheries and foz:estry also offer important opportuni:}ies for developtnen1?; forestry, o in particular, could become a maJor source of fore1~ exchange for the country. To finance a program ,of the size i~utl1ned in ~-~report, the m1ss1o~ est~tes 0 that gro;s new investments of nearly 3 i billion ·i.,oe;· annually ( equivaleht to abvat \i $35 million} will be needed over the n~xt eight years._ One third of this would be in foreign ·exchanse. If·th~se new investments are made it would mean that 4~ of the 0 gro'ss national product, would be invested in agriculture as against somewhat over • 2'/, at the present time. The mission stresses theta program of this size will require a determined effort by the na~ion as a whole, but eXpresses the belief that 1t,_ is not out Of' proportion to the need or abillt, of Chile to carry out. Moreover, the mission points out that in five years' tu.e, ae a result of 1ncreaeed 0 production and lessened dependence on imports, the increase inf.FOSS nationel product could exeeed the investment, and thereafter net benefits to the nation would steadily increase. ,' (1, Since the mission's visit, the Chilean. Government has taken IDlUiY mea11u~s directly or in41rectly concerned With asricultural developnent. Amons the most 1111portant al:'9: the atrengthen1ns of the Ministry of Asnculture; a plan to .sna~~ improve animal husban4n'; provision. of medium term loanr, to asriculture,. ina1~ for better livestock production; the constructi.on of a pilot beet sugar· factoryJ erransements for accelerating the ~1si-at1QD ot European ferniers; a plan to:r a •.. basic fo:restey ~d soil .conservation law; a general forest indue;try survey; a J.arp 1norease, in funds available tor road.e.; exemption ot farm tnllehinery from import duties; .amiQU.ilCemen.t Qt h1ahe:r wheat prices beS1tm1ns. in DeteDibe~ 1952;. and a sub- ·&:l.cly ,on phoaphate iJrJ.ports, -,~ ;_, .,,,·,, ,,  0 " &\NCO nr~RN!\CIOH.\L nc ·ircol,lsT-:mcc1mr y ,FCJ.~'TO if Comunicado de Prensa M 312 0 Para publicar a la 1 p.m. el lunes 1°de Die. 1952. Iloy ~ro~ 'p.blicadas las recanenrlaciones pl'.ra un vasto program& de tomento agr!cola en Chile. Las recomendaciones forman pa.rte del i'l.forme de la misi6n & . env!D.da, a Chile a solicitud del Gobierno. Q por la Orea:nizacion de las Naciones 0 Unidaa J•ra la 1Agricultura y 0 J.a Alimentaci6n y el ~nco Internacional de .') Reconstrucci&n ('7 Panento. Eugene Jt. Black, Presidente del B.:wco Hundfal y Sir Herbert Broadley, Sub Director r.ineral de la FA O presentaron hoy el Informe en W--.shington a Don l'elix Nieto del Rio, Tmbaje.dor de ChUe en los EE. uu., r»,ra su transmisi6n al C'tobierno. \ 14 1;1t1lcln, dirigida por· Y''jbert deVries, J"ere de le. 1Jiviei6n Ji'.,con6mica del Depart1JDento de ~raciones Tecnicas del Tmico, pa.so en Chile ouatro meses • en 19;51 estudiando los problemas y la pol:ltica a~icolat11.() Antee. de formul.ar las recomendacioncs fin,:,.lcs de la. misi6n, ol Or. deVries ~a6.:Q:t:raa 4 se_~n,ie . . en Chile en junio y julio .~e 1952, haciendo nu.r.vofl estudios y en conaulta con el Gobterno. En la cart& con ('_ue transmiten cl IJtonne, cl Pwesidente del Banco y el Director aeneral de la F A O dicen ,,,,e el lnf'orme pued• o.yudar aubetanc~.~.bM?nte al Gobiemo a trazar las l:lne1.s generales de un pro,.,,rama •F46ol& y de una ~7.. politica econ6in.1ca7de loa arreglos administrativos necesarioe ?J9.ra la realizaci&:L· del prograa~ ia cart.a anota, sin cmb!rgo, que el Intorme a6lo, podn aer de utilidad si ee tanan medidas et'e~tivas par.:i detener la 1ntlao1c1n. 'C'"Opin&moe c,_ue a mcnoa que sc detent.,l el proceso intlacionista., las contCNiones ~ que la econom~ nacional ha. sido sometid:i vendran a empeorarl& ~y con,tituirlln muy eerio obstaculo para la ejecucion de c\Jalquier programa. ,.de tomento. Contiamos on aue el primer objetivo del nuevo Gobienio sen[ dctener la i11flacicSn_ para pe1"1Dit1r 0  . ff (? -2-- as! que las tuerzas econ6micae desempenen su papel de ltncauu.r la producc16n· • ---_ . Al revistar' las condiciones actuales de la agricultura en aine, el intorme cc • \\ ind.lea que ~urante ma's de una dldada e:i ~is ha ~sado ~r un perfodo de ripido . o "- - ,ir" desarrollo y que en los ult1mos aftos ha dado .,.andea paaos back la e~ai• de au industria v la producc!,6n de energ:la el£ctr1oa. En el NIIO de la &gri- 0 cultura no se han lo;re.do pro~sos comi:arables. ~.J. ,i.umento 4• la poble.OWn c- 0 y el levant.amiento del niyel d.e vid& han producido un aumento cona_~te en tl,, conaumo de ·i!1mentoa. I.a ""'roducct6n agricola, no obetante, .. ha retraaado ,,7 J .;::, debido a ello han aumentado bruscamente las illportacionea de viveraa. Si ha ~ 9-::> . " da 10) ~~rse vn mejor equili~io en la econania chilena, debm h&cerN estuenoa \\.,,_~ :i IP-' para. llev.1.r a la prictica un pro~ de upmsi6n y •jora de la agricultura._ Ia misida crM que con un proer,ama tal la naeitSn chil~~e., dar abaatc; econdmi- camente q\,e el pi~ oon' au propio suelo para sus neccsidadoe al!montioias. tienda a incraentar la producci& agr!cola en un 38. sr, con IA a1e16n ausl-ere • ralaci~ al perfodo 1945-49. 11 1ntor111 haoe bincapi,. • l.rl. necesi~d de que el Gobierno adopte una "' polft1aa a~fcola est~hle, a largo Urmino, destinada a c ~ 7 mantener· sut-1- </ • clente CC')nt1aua entre lN a~icttltoraa Jar& q\le H a t ~ a realiaar pro~• ,-/) fffJOrG808 da- ezpaDei6ft. 0 ~t,n Otl'OS a1untos, todo esto ~ i f t j,restar &ten- cic!n a la polltica aobre 1nf'lao16n, al p~io de loe productoe de la tierra; a las taaaa,c!e ,J._1 ..,\,toy a~'la coordinaoidn y robuateoilniento < ;.. de la• nriaa actirl- (f~d•• pbe~tales relacionadaa c~ la ap-icultun., eq pal't.icular, la 1'aveati- ~oic1n o1antit1aa, loe aervicioA do extenaidn y el cridito a~f.oo__:!:,.. otra• •  0 -3- i ccapraventa de productos acricolaa. Ia recanenc:lacion primordial acerca de los · siatenas (h-iectos para .umentar la producci6n a~icol.a es la. expansi6n de las areas de cult1vo 7 la •jora de los mtodoe. ParP.l proveer de nuevas tierras (• a la agricultura, la miai6n r,ropone (!Ue en los proximos ocho anos 88 irriguen una.s 200.000 hecta.1918 adicionales; se rehabiliten r- drenen unas 2SO.OOO hectareaa y Se ll!COrpGNll a la produce ion unas 150. 000 bectareas hoy -'.'.blndonadas V ociosaa. El intorme trae recomendacioncs sobre el aumento de la producci6n agricola y pecuar1a en la tierra bo,r cultivada. Se obael"Yll que con mejoree rorrejea, al')ergue ix,.ra los animles y control d~ entermedad<:a nodr:la &UNntar en un 55' la pr~Jccion de lec~1e .Y en un 50'J la de ca!91le, en loe proximos ocho anoa. Entre lae recaaandaciones princi~les para 1~ mejora de lns coeechae ae ballan r·l incre- mento en el eapleo de mquinaria, uso de mejoi-es s•~pis, y un •Jor control Ji • de peetee, entermedadcc y cizam. La pesqu£ria y la )silvic,'ltura otrece1' taabien mportantes oportunidades de;'tomento; particulamente la sil•ioultun.podrfa lleg,r1r a ser fuente considerable de divieas e~:tranjeras. Par-,. l:inanciar un ,rograma dcl tamano deline!\do en el intonae, la mieidn CP..lcula que so neceaitar:m inversiones nuens de cerca de 3.000 millonea de pesos anuales (fl<!UiWlentea a tmos US'\35.000.000) durante loe proxiiao1 ocho anos. Un tercio de la sumo. ser!~ en cam~io e::tr,uijero. Haoer ••t.a• 1nversionea, equivale 1 invertir un '"~.~ del in~eso n-::.cional bruto en a~icultura, an contraate oon el ~ que se invierte actualmente. I.a r,isi6n cree c: ue un pro~ de eat& 1 JDagnitud requiere un c1,tucrzo decidido de toda la nacicSn, pero no lo consider& desproporcionado ni a ias necesidades ni a la habH14ac1 del Plteblo chileno. Adem&s, la misic5n dico · ue pa.sados los (' . p:r-imcros 5 afios, como reaul,1'4~ del - , ~: cle increm~nto en la µroduoc:1.ot:Vl:'Ua mrnor derx:.nder..cia de lns importac~ ones, el • aumento del producto na.cional brv1.io podri.:1.. sobrepasar la inverai<Se 7, de alH: " 10'.  0 -4- en adelante, sl beneficio neto ~ra la ne.cion creceria conatantement. oosclc l'l visit·?. de la misi6n, el· ~o1Jiemo chileno ha tornado medidaa • relacion~.das directa o indirec~uante ,-,;.)-:;.! con el fomento. ·a~icola, las m&la ':, ;··( ) 1mpo·L ta.ntes son: el robustecimiento del Hinisterio de Agric\1lt~ un plan para 4 mejoramiento de l "ls sistcma.s :anaderos; Ia·. aoncesion .ae creditoa a pl.aao mecHano para los hacendados, sobrc todo a los productores de came; la conatruccl~n de tma p;l.a.Dta de azucar piloto; los arreglos ~ra acelerar la irllai~c16n de .(/ ~/ ca~pesinos europeosj un proyecto de ley bisica de silYicultura y conNnac16n ,:, dcl suelo; un estudio general de la industrb. ~oreetal ; ~ aumento cone idere.1lle •, de los rondos destinados a ,car:;:eteras; la exenc16n aduanera para la maquinaria · agricola; el anuncio do nracios mas altos p--.ra el trigo a !)Utir de dioiembre de.1952; y un su'l:)sidio a las importacionea de rosrato. • •