Chile steps up aid to desperate quake victims

CONSTITUCION, Chile (Reuters) – Chile’s government  used helicopters and boats to speed up the delivery of food to  hungry survivors on Tuesday as the death toll rose to nearly  800 three days after a devastating earthquake and tsunami.

Chileans desperate for food and water swarmed soldiers as  an army helicopter touched down in the ruined coastal town of  Constitucion, which was hit by three giant waves set off by  Saturday’s 8.8-magnitude earthquake.

The government dispatched more troops to restore order in  Concepcion, Chile’s second-largest city, which was placed under  curfew for 18 hours a day after looters raided stores and  burned a supermarket.

There were no reports of major outbreaks of looting on  Tuesday and President Michelle Bachelet said order had been  restored in the city, which bore the brunt of the quake along  with coastal towns that were also devastated by tsunamis.

Constitucion, with a population of nearly 40,000, accounts  for nearly half of the official death toll, which Bachelet said  had risen to 795. Surrounded by three hills, the city was  turned into a ruin of flattened homes and toppled buildings.  Wooden homes perched atop the hillsides were among the only  buildings left standing.

Dozens of bodies were lined up on the floor of a makeshift  morgue in a high school gymnasium, where people cringed at the  pungent smell of death as they scoured a list of victims.

Officials estimated that between 100 and 500 people in the  city are still missing.

Many Chileans complained that scores of deaths could have  been avoided had the government responded faster to the  earthquake, which set off a roaring tsunami a few hours later  that killed many who had survived the quake. “Nobody showed up around here to warn us,” said Alejandra  Jara, a 28-year-old resident of La Pesca, a small fishing  village just north of Constitucion.

“We fled on our own because we know that when there’s a big  earthquake, you have to leave everything and take off.”

Manuel Parra, who also ran for higher ground, was one of  many residents whose seafront homes were washed off  foundations. “Those who went inland up the hill survived. Those  who didn’t are no longer here,” said the 64 year-old. The government has acknowledged that rescue efforts have  been slow, in part because of mangled roads and power cuts. But  officials also misjudged the extent of the damage, initially  declining offers for international aid.

The looting and violence that followed the quake prompted  some people in Concepcion to band together to protect their  homes, armed with sticks and shotguns.

With tensions high in Concepcion, soldiers were delivering  food and other basic supplies house to house.

Food, blankets and medical equipment were being sent to  some of the estimated two million people affected by the quake,  but residents complained of skyrocketing prices for everyday  staples like bread and milk.

Making a stop on a tour of Latin America, U.S. Secretary of  State Hillary Clinton delivered 20 satellite phones to help in  relief efforts. Bachelet, who is in her last days in office,  said Chile was now asking other countries to help supply  desalination plants and power generators.

Most of Concepcion remained without water and electricity  as rescue teams used shovels and drills to find possible  survivors in the rubble of a collapsed 14-story apartment  block.

The looting and a growing perception that government relief  efforts have been slow have tainted the country’s hard-earned  image as Latin America’s beacon of order and stability.

But both the human and economic cost could have been a lot  worse given the size of the quake, one of the world’s biggest  in the past century. Chile’s rigid building codes left it much  more prepared for a quake than Haiti, where more than 200,000  were killed in January in a 7.0-magnitude quake.

Chile has the most stable economy in Latin America but the  huge quake and tsunamis have hit its efforts to climb out of a  recession triggered by the global economic downturn.

Some analysts estimate the damage could cost Chile up to  $30 billion, or about 15 per cent of its gross domestic product.  But Bachelet said it was too early to tell.

Asked what it would cost to rebuild, Bachelet replied: “I  can only say it will be a lot.” The disaster also hands billionaire businessman Sebastian  Pinera a mammoth challenge days before he is sworn in as  Chile’s new president. Pinera ran for office pledging to boost economic growth to  an average of 6 percent a year and create a million new jobs.  On Tuesday, he said the quake had not altered his economic  goals. “Those figures remain,” he said, adding that the  reconstruction phase could accelerate growth and job creation.

The government has forecast the economy will grow between  4.5 per cent and 5.5 per cent this year. Chile is the world’s leading copper producer and supply  concerns at first pushed global copper prices sharply higher  but the country’s main mines have resumed work and prices fell  sharply on Tuesday.

The Chilean peso gained more than 1 percent on Tuesday on  bets that the government and pension funds will repatriate  offshore funds to pay for the reconstruction effort.

The central bank has said it would keep interest rates at  record lows to help stimulate the economy.