Washington Survey - Expropriation, Safety And Union Worries Simmer In Capital

President Allende says he will expropriate all American investments in Chile and he's already well on the way to accomplishing this objective. What the average observer doesn't realize is that this has not only created big lossess for the copper companies. It could also take a chunk out of the U.S. taxpayers' pockets. Premier Castro expropriated the U.S. taxpayers' investment of over $100 million in the Nicaro (Cuba) nickel and cobalt operations-and U.S. Government protest over the loss was never heard above a whisper. Where the taxpayer comes in today is through the Overseas Private Investment Corporation, which was set up to guarantee U.S. companies' foreign investments against losses due to political changes. As of now, metals firms hold more than $300 million worth of obligations against this U.S. Government agency. The agency itself may not be able to raise more than $85 million, and a supplemental appropriation may be needed to meet its guarantees.