Film shows people buying goods.



Film shows poor people looking for bargain prices.



Film shows popular food market



Film shows shopwindows and people watching imported watches, tv sets and other goods.



Film shows streets of Santiago



Film shows expensive imported cars in streets of Santiago



Film shows expensive houses at one of Santiago's better suburbs



Film shows market with prices of different foodstuffs.



Several shots of rich houses at rich neighbourhoods.



Several shots of a popular food market.



Shots of people buying.



Stands in same market with different foodstuffs.



Shots of poor people buying and looking for bargain prices.



Several shots of shopwindows and people watching imported.



watches,tv sets and other imported goods.



Several shots of Santiago streets.



Several shots of expensive imported cars on Santiago streets.




Initials



Script is copyright Reuters Limited. All rights reserved

Background: After almost two years of drastic austerity, chilean workers are beginning to savour the fruits of increased economic activity in Chile.

By raising wages--a four per cent on the minimum salary--and lower income taxes ranging from 28 to 92 per cent paid by wage earners, the government has given chileans more money to spend.

The salary increase of four per cent ordered by President Augusto Pinechest as from last month (5/77) benefitted 350,000 government workers and lower income workers in the private sector.this will put an additional 80 million dollars in their pockets over the rest of this year.

The income tax cuts which also went into effect last month (5/77) will add a similar amount to consumer spending, particularly by the middle classes, making up the largest part of the chilean population which includes specialised workers, small-scale businessmen and people with university training.

The middle-classes in Chile had been the hardest hit by income taxes which are deducted automatically from their wages. A middle class employee with a monthly salary of 700 dollars paying forty per cent in income tax, is now paying only 15 per cent of his salary to stat revenue.

According to government estimates, its latest measures have effectively brought salaries back to the level they were at before a stiff programme of economic recovery was introduced early in 1975 to bring inflation under control, to wipe out the balance of payments deficit and put the economy on a sounder basis.

The cost of living increase of 3.8 per cent in Chile last month (5/77) was the smallest in six years.

The May increase, as measured by the consumer price index, followed a rise of 4.7 per cent last April and brought the overall rise this year to 29.3 per cent, compared to a 69.7 per cent increase for the same period last year.

In the twelve months to May, the cost of living was up only 109 per cent, compared to the 232 per cent in the previous twelve months.

The chilean economy was in a serious condition two years ago as a result of an unexpected slump in the world copper market and of the need to repay about one billion dollars annually in foreign debts.

Apart from lowering income taxes and raising salaries, the government this month (5/77) ordered the central bank to make available an additional 30 million dollars equivalent for housing construction, bringing government credit for house construction this year up to 77 million dollars.

Chile's balance of payment currently shows a 400 million dollar surplus.

The Chilean Business Association says industrial output last January was up 18.8 per cent on the same month last year. Sales were up 7.7 per cent.

And the National Farmers' Association says agricultural output this year will be as good as last year as a result of bumper crops.