And Now to Toil

The red, white and blue inaugural bunting was down from the lamp posts and buildings throughout Santiago, and the distinguished visitors had returned home to such faraway places as Ghana and Senegal. Last week Christian Democrat Eduardo Frei, 53, Chile's newly-installed president by virtue of a resounding victory over Communist-backed Salvador Allende, called his first Cabinet meeting and got down to the toil of pulling his country back from the cliff edge of financial ruin.

Frei (pronounced fray) had no illusions. "The facts cannot be cloaked," he said. Chile's foreign debt is $2.3 billion, with amortization and interest alone swallowing 50% of export earnings. Gold and dollar reserves are down to a scant $160 million. And then there is inflation. "My great enemy," groans Frei. "From last November to this November it climbed 47%. This cannot go on."

To cure the ills, the tall, scholarly Frei has more than a few ideas. Among those in the hard-planning stage: doubling Chile's 630,000-ton annual copper production in six years, vastly expanding the hesitant land reform program begun by his predecessor Jorge Alessandri, building such resources as pulp-yielding trees and the fishing potential of Chile's endless coastline. To help him, the new president has put together one of Latin America's most competent cabinets, drawing men from the top ranks of the professions, business, labor and government.

"What we need is time," Frei begs. The big U.S. copper companies in Chile seem to agree, are talking about paying their 1965 taxes in advance. Even before his inauguration, Frei sent two top aides, Senator Radomiro Tomic and

Foreign Minister Gabriel Valdes, to Washington to ask that Chile be permitted to reschedule and delay upcoming heavy payments on her $350 million debt to the U.S. Chances that the request will be granted are good.

After winning 56% of the vote, Frei has a clear mandate for reform. His problem will be Chile's contentious Congress. Frei's Christian Democrats hold only 32 of 192 seats. New congressional elections are scheduled for March, and by then the President hopes his legislative programs will have won the public support necessary to gain a majority.

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