Ley Reservada del Cobre

The Chilean Law N° 13.196 known as Ley Reservada del Cobre (Spanish for “Restricted Law on Copper”) was a highly controversial secret law (“restricted” in this context refers to the law not being freely available) issued on 29 October 1958 under the administration of Carlos Ibáñez del Campo in order to allocate revenues from the copper mining corporations for the purchase and maintenance of Materiel of the Chilean armed forces. The law was replaced in 2019, with the armed forces’ finances scheduled to come under the national budget by 2029.[1]

. . . Ley Reservada del Cobre . . .

Automatic military funding from natural resources revenues can be traced in Chile to the 1880s[2]:211

On 7 January 1938, law N° 6.152, known as Ley de Cruceros (Spanish for “Cruciers Law”), was issued to transfer 90% of the leasing receipts of South Patagonian territories to arms purchases.

Later, in 1942, the Chilean Government, worried about the ongoing Pacific War and the defense, created the CONSUDENA, Consejo Superior de la Defensa Nacional, and allowed them to allocate revenues from currency dealings, alcohol tax, cigarettes tax and income from big copper companies for the purchase of weapons[3] without parliamentary oversight.

The Ley de Cruceros or Ley Reservada del Cobre was issued in 1958 after a serious military incident on the Snipe islet by the administration of President Ibáñez in order to deviate funds from tax revenues from big copper mining corporations directly to the armed forces.

The Chilean nationalization of copper transferred in 1971 the properties of the big copper mining corporations Anaconda Copper Company and Kennecott Utah Copper Corporation to the Chilean state and in 1976 CODELCO was created in order to manage the development and production.

The law has been modified in 1973, 1975, 1986 and 1987.

History of the Law[2]:230
Law or Decree floor % tax or receipts Changes
Ley de Arrendamiento de Magallanes, Ley del CONSUDENA
Ley 6.152 amongst others (7 January 1938) unknown 90% of the state leasing receipts in South Patagonia
Ley 7.144 (5 January 1942) 4.000.000 CLP as above, plus currency dealings and alcohol and cigarettes tax Creation of CONSUDENA
Ley Reservada del Cobre
Ley 13.196 (19 November 1958) 8,5 Mio. US$ 15% of the tax revenue from the copper big corporations (tax was 50%) Introduction of compensation payment if a lowest amount can’t be reached; changeover to US$
Amendments 1973-1990 under A. Pinochet
Decreto ley 239 (31 December 1973) 90 Mio. US$ 10% of the total receipts of the copper big corporations from abroad division in equals parts for army, navy and air force
D.L. 1.530 (21 Juli 1976) 90 Mio. US$ 10% from gross receipts of CODELCO coming from copper sales abroad plus 10% of deposits of CODELCO abroad implementation of secret accounts for navy, army, air force and COSUDENA; CONSUDENA get upon request 10% of the incomes
Ley 18.445 (17 October 1985) 180 Mio. US$ as D.L. 1530 plus 10% of gross receipts from abroad sales of CODELCO’s byproducts annually inflation-adjustment for the basic allowance according to the United States-inflation effective from 1 January 1987; Implementation of a reassignment plan for surpluses
Ley 18.628 (23 Juni 1987) unmodified unmodified The assignation of the revenues is under approbation of the chiefs of army, air force and navy.
Amendments 1990-2006 under the Concertación
Official expertise of Contraloría General de la República de Chile (December 2002) unmodified unmodified Distribution between navy, army and air force doesn’t affect the right of the CONSUDENA to decide about the total of the revenues; Implementation of a fond for surpluses.

. . . Ley Reservada del Cobre . . .

This article is issued from web site Wikipedia. The original article may be a bit shortened or modified. Some links may have been modified. The text is licensed under “Creative Commons – Attribution – Sharealike” [1] and some of the text can also be licensed under the terms of the “GNU Free Documentation License” [2]. Additional terms may apply for the media files. By using this site, you agree to our Legal pages . Web links: [1] [2]

. . . Ley Reservada del Cobre . . .

Previous post Inverness South (ward)
Next post Callum Rzonca