II.   LEADING TRADE PROSPECTS FOR U.S. BUSINESS

         Best Prospects Products and Services for U.S. Exporters

     Excellent opportunities exist in Chile for U.S. suppliers of capital
equipment and cutting edge technology.  Best export prospects, by
industry sector, include: pollution control equipment, aircraft and parts,
computers and peripherals, building and construction materials, vehicles
for mining and passenger use, telecommunications equipment, sporting
goods and recreational equipment, apparel, and laboratory and scientific
instruments.

     The Frei government plans major projects in the environment,
infrastructure/ transportation, and telecommunications sectors, where
international tenders are expected.  Over the short- and medium-term, the
projects will include: electronic toll road concessions, privatization of the
Chilean Railroad's cargo system, a monorail for Santiago, a highway
concession program, a centralized control teletransmission system for
Santiago's subway, a fiber optic network, wastewater treatment, and a pilot
project in Southern Chile for an information superhighway program.

     In the agricultural sector, prospects continue to be good for further
expansion of consumer-ready exports to Chile.  U.S. exporters have
benefitted recently from the continued appreciation of the peso by
establishing footholds for products that were previously unknown in the
Chilean market (e.g., microwave popcorn).  The image of U.S. products in
Chile is positive.  Knowledge of U.S. products and lifestyle has increased
markedly in recent years, and the U.S. image remains high.  Expansion in
U.S. consumer-ready exports should be spurred by increased per capita
income, rising consumer experimentation with new products, increased
attention to quality foods, and expanded demand to supply fast-food
restaurants.

     Full details on the following best agricultural and industrial
prospects are found in Appendix B.

            Best Prospects for Agricultural Exports

      -- Grains
      -- Processed Fruit and Vegetables
      -- Snack Foods
      -- Raw Cotton
      -- Pet Foods
      -- Tree Nuts
      -- Fresh Deciduous Fruit


            Best Prospects for Industry Sector Exports

      -- Pollution Control Equipment
      -- Aircraft and Parts
      -- Telecommunications Equipment
      -- Computers and Peripherals
      -- Automotive Parts and Service Equipment
      -- Travel and Tourism Services
      -- Port and Shipbuilding Equipment
      -- Franchising
      -- Mining Industry Equipment
      -- Construction Machinery
      -- Railroad Equipment
      -- Building Products
      -- Medical Equipment
      -- Oil and Gas Equipment
      -- Computer Software
      -- Safety and Security
      -- Sporting Goods and Recreation Goods
      -- Electrical Power Systems
      -- Apparel
      -- Laboratory and Scientific Instruments