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...time to put ashore four Chilean cranes that were being used to unload sugar. The Cuban captain's haste seemed justified; his vessel was bombed and strafed before escaping to sea. Another Cuban ship laden with sugar turned back to Havana before it made port in Chile. In each instance, Chile's new junta cried foul. It contended that Cuba had to deliver 18,000 metric tons of sugar because the Allende government had paid in advance. If the sugar was not forthcoming, said the junta, then Chile was owed $8,000,000, including the cost...

Author: /time Magazine | Title: The Law: Bitter Sugar | 11/19/1973 | See Source »

...order, but authorities just missed nabbing the two sugar-bearing ships. So the attachment was simply applied to the Imias, the next Cuban ship that happened along. Meanwhile, in the wake of the coup, a Soviet captain had also decided not to deliver his cargo of chemicals to Chile, and a similar legal action trapped his ship...

Author: /time Magazine | Title: The Law: Bitter Sugar | 11/19/1973 | See Source »

This time a Havana paper was soon complaining about "the cynical marriage between Washington and the criminal fascist junta of Chile." At a State Department hearing, lawyers for Cuba claimed that the Imias is owned by the Castro government and is therefore protected by the doctrine of sovereign immunity. In most cases involving commercial cargo ships, a claim of immunity is not ruled upon until after a full trial. But Washington apparently decided that in view of the politics involved, discretion was the better part of precedent. The State Department advised Crowe to let the Imias...

Author: /time Magazine | Title: The Law: Bitter Sugar | 11/19/1973 | See Source »

...court duly deferred to the diplomats, and the Cubans were delighted. The Russians meanwhile worked out a political face-saver by agreeing to deliver to Peru for transshipment to Chile; their vessel was released. But last week, just before the Imias would have sailed, the angry Chileans put up a required $25,000 appeal bond, and the case is now before the U.S. Fifth Circuit Court of Appeals. Thus at week's end the Imias was still stuck in the canal, where its captain says he will sink her rather than give her up. The whole episode has left...

Author: /time Magazine | Title: The Law: Bitter Sugar | 11/19/1973 | See Source »

Painful Eating. Chileans are already feeling the pinch of other new economic policies. The Allende regime had forced industry to hire unneeded workers; many of them have been fired, adding to Chile's high jobless rate. To blunt the inflationary impact of the artificially swollen money supply-Allende had simply printed more and more currency-the new government devalued the escudo by 58%. That action severely chopped into the buying power of all but the wealthiest consumers. In addition, the junta has largely scrapped Allende's heavyhanded controls on prices, which were kept so low in relation...

Author: /time Magazine | Title: CHILE: Righting a Leftist Mess | 11/12/1973 | See Source »

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