
Although the coup is mentioned (and our priest is an instructor to Pinochet himself!), the novel's most powerful political passage is in metaphor -- Urrutia is sent to Europe, ostensibly on church business, by government agents. He is to write a report on the preservation of churches, as the churches in Europe are much older than the churches in Chile, so there's been significantly more research on the Old Continent. After his arrival, the priest is surprised to find that "the principal threat to the major examples of Romanesque and Gothic architecture was pollution caused not by humans but by animals, specifically pigeon shit," and the priests have all taken up falconry as a solution. The passages that follow, describing how two falcons cannot coexist in one city, or how a falcon takes a dove that had been released to celebrate a festival, are clear metaphors for fascism.
The complicity of the intellectuals in the coup is made explicit towards the end of the novel, as our priest relates how a certain woman was able to give parties for writers and artists despite the curfew imposed by the regime. He speaks of how she wasn't exactly in the community due to her efforts, but due to her willingness to host the gatherings. Eventually, it is discovered that her husband is not a traveling salesman, but is a high level functionary in the secret police, and is torturing suspects in the house, sometimes even while the parties are going on. Again, in a metaphor, the poet who finds this out does not raise the alarm, but quietly slinks back to the party and rejoins his fellows.
Unlike this post, By Night in Chile lacks paragraph breaks, or regular sentences -- Bolaño has captured the spirit of a rant, as Urrutia digresses, hallucinates, catches himself, and plunges onward, pausing only to wheeze and draw breath, before the storm of shit begins.