◆ SpookStack

SE T/ II. Covert Action Durin the Frei Re ime (1965 - 1968) Funds wefe authorized to assist selected candidates in the Match 1965 congressional elections. This program was designed to assist 35 moderate candida'tes representing all non-FRAP parties who were considered to be involved in tight- races against leftist candidates. The hlection results proved that President Frei's great' populaz ity had ciir'ied over into the congressional election since moderate, particularly PDC, candidates scored impressive'victories in many close fac'es. - But by early 1968 President Frei and his Christian Demo- cratic Party (PDC3 had clearly lost much of their previous popular support. The pDC was also rent by internal dissension. - between left wing factions and the more moderate group led by President Frei. At the same time the Communist Party was launching a program designed to unite as many leftist and f, , po left-of-center groups as possible in preparation for the 1970 ~(li - ~7 presidential elections. In view of the increasingly uncertain political outlook, a program foz' $350, 000 was authorized in 'July 1968 for the March 1969 congressional elections with the objective of strengthening Chile's moderate political forces in anticipa- tion of 'the 1970.presidential election. This program consisted of (a) providing financial support to andidates in the non-Marxist. parties (b) supporting a splinter Socialist Party (Popular Socialist Union — USp) in order to attract votes away 6 sdH. r~WN/