One of the larger of the native peoples of South America, the Araucanians include different ethnic subgroups, some of which are now extinct. Once geographically spread extensively over the southern cone of South America, at present they are reduced to only two closely related groups: (1) the Mapuche of southern Chile, the largest one; and (2) the Argentinian Araucanians of the southwestern Neuquen province. These groups share the problems of misery, pauperization, unemployment and economic exploitation of the working masses of the Chilean people, especially of the peasantry to which class most of them belong. They are also the object of racial discrimination. Consequently, they are subject to a double exploitation. Although principally their problem is a socioeconomic one, it is aggravated by the racial discrimination against them; consequently, they also have problems of lack of ethnic freedom and absence of equal opportunities for cultural expression. With special emphasis on the large Chilean Mapuche group, this paper discusses the: origin and evolution of Araucanian society, traditional Araucanian culture and society, sociocultural changes in the reservation system, demographic aspect, impact of agrarian reforms, and counter agrarian reform and the Indian communities. (Author/NQ)