Intercontinental Press

Africa Asia Europe Oceania the Americas Vol. 12, No. 39 © 1974 by Intercontinental Press November 4, 1974 Two Mniion Protest ord Visit to Japan

Report Contradicts White House Claims Repression in Worse Than Ever

Interviewed in Sweden Blanco and Bejar Cross Swords

Ernest Mandel Real Source of the Flood of Petrodollars

Una Entrevista Con Nahuel Moreno La Ultroderecha: Nuevo Peligro en Argentina Model Businessmen

How Tanaka Did It In This Issue A report by a team of twenty investi gative reporters working for the FEATURES A Note on the Careers of Bejor and Japanese monthly Bungei Shunju has Blanco—by Gerry Foley disclosed a number of the crooked Hugo Blanco and Hector Bejar Cross deals that made Premier Kakuei Ta Swords naka the multimillionaire he is today. An Arab and Iranian Finance Capital The investigation—the results of Emerges—by Ernest Mandel which were published in the maga Threat of World SI ump Alarms "Business zine's November issue —was prompt Week" —by Dick Fidler ed by reports that Tanaka spent $10 JAPAN How Tanaka Did It million to $16 million in his 1972 Two Million in Rallies Against Ford drive to become president of the ruling Visit to Japan— bv Peter Green Liberal Democratic party, and thus ARGENTINA They Opened Up With Machine Guns Japan's prime minister. Although the Police Raid on PST's Cordoba Local reporters were unable to document the BANGLADESH Bangladesh Ravaged by Hunger actual cost of his campaign, they did MOZAMBIQUE Portuguese Troops Attack Mozambicans learn that he had enough left over to GREECE The Lineup in Greek Elections buy three large resort villas at about Papodopoulos Exiled to Island the same time for $1.6 million. in Aegean Items covered in the study included: Repression in Chile Worse •Tanaka's 1950 conviction on Than Ever bribery charges. (The conviction was Shah Purges Iranian Press reversed on appeal in 1951.) — by Majid Namvar •Tanaka's financial deals with DOCUMENTS From Stalinism to Trotskyism in Kenji Osano, who was convicted of il New Zealand legal gasoline transactions in 1950 Spanish Police Report Arrest of and is now one of Japan's wealthiest Trotskyist Group men. The magazine reported that as Sfarement of Portuguese Postal Workers finance minister, Tanaka authorized GMR's Stand on Sunday Labor in Portugal the sale of choice government proper AROUND the WORLD ty to Osano, who resold it a few DRAWINGS George Papodopoulos-by Copain months later at a profit of $7.5 mil EN ESPANOL: lion. Later Osano bought a real es Amenazo de Crisis Mundial Alarmo a tate company from Tanaka for $5 "Business Week" — por Dick Fidler million, three times its face value. PORTUGAL Las Peligrosas llusiones en el Ejercito •A network of dummy companies Portugues—por A. Romero that list Tanaka and his close family ARGENTINA Asesinos de Ultraderecha: Nuevo or aides as officers and directors. Peligro en Argentina •Tanaka's massive personal hold GRECIA Ninguna "Reconciliacion" Con el Ejercito ings, including five acres of downtown Griego Tokyo (valued at $8 million) , "I come from the world of business," Tanaka explained to foreign reporters October 22, "and so far as it does not interfere with political activities, I have Intercontinental Press, P.O. Box 116, Village Station, which may not necessarily coincide with those of Inter New York, N.Y. 10014. continued my business activities." □ continental Press. Insofar as it reflects editorial opinion, EDITOR: Joseph Hansen, unsigned material expresses the standpoint of revolu CONTRIBUTING EDITORS; Pierre Frank, Livio Moiton, tionary Marxism. Next Week Ernest Mandel, George Novack. PARIS OFFICE: Pierre Frank, 10 Impasse Guemenee, EDITORIAL STAFF: Michael Baumann, Gerry Foley, 75004, Paris, France. "Roy Medvedev Debates With Pa- Ernest Harsch, Judy White. TO SUBSCRIBE: For one year send SI5 to Interconti nin, Sakharov, Solzhenitsyn, and BUSINESS MANAGER: Reba Hansen. nental Press, P.O. Box 1 16, Village Station, New York, ASSISTANT BUSINESS MANAGER: Steven Warshell. N.Y. 10014. Write for rates on first class and airmail. Others." COPY EDITOR: Mary Roche. Special rates available for subscriptions to colonial Despite the bureaucratic pressure, TECHNICAL STAFF: Bill Burton, Art Gursch, James and semicolonial countries. dissident circles in the Soviet Union M. Morgan. Subscription correspondence should be addressed to continue to discuss current issues Published in New York each Monday except last in Intercontinental Press, P.O. Box 116, Village Station, from a critical standpoint. Medve December and first in January; not published in August. New York, N.Y. 10014. Because of the continuing dete Intercontinental Press specializes in political analysis dev calls on the participants to ap rioration of the U.S. postal system, please allow five and interpretation of events of particular interest to weeks for change of address. Include your old address ply Marxist criteria and not to trust the labor, socialist, colonial independence, Black, and as well as your new address, and, if possible, an the capitalist West. women's liberation movements. address label from a recent issue. Signed articles represent the views of the authors. Copyright © 1 974 by Intercontinental Press.

Intercontinental Press Secret Pact Revealed on shipment of Nuclear Arms

Two Million in Rallies Against Ford Visit to Japan

By Peter Green

Huge protest rallies throughout Ja ing, Halloran described the response Washington Post reported, "he stressed pan on international antiwar day, Oc at the Tokyo rally as "tepid." the official belief that the United States tober 21, demanded the removal of 'With the rather lighthearted, carni abides by what he described as a U. S. nuclear weapons and the cancel val atmosphere that prevailed to nuclear-free policy with respect to Jap lation of Ford's scheduled November night," he said, 'It seemed doubtful anese installations. .. ." 18 visit. The sponsoring organiza that they [the sponsoring organi "Japan's antinuclear 'three princi tions, which included the Communist zations] had made much headway to ples'—refusal to manufacture, main and Socialist parties and the major ward their objective" of forcing the tain or permit the introduction of nu trade unions, reported that 2.2 million cancellation of Ford's visit. clear weapons—are not contradictory persons had taken part in 456 dem However, three weeks before Eisen to the country's reliance on the U. S. onstrations. hower's planned visit in 1960, the nuclear shield in Asia, the foreign min A rally in Meiji Park in central To New York Times made a similar ef ister maintained." kyo was attended by 70,000 demon fort to play down the seriousness of Crew members from the U. S. air strators. Speakers at the rally repeat the opposition. "Students and Adults craft carrier Midway were able to give edly pointed to the massive protests Chant in Carnival Spirit Against Vis specific details of the nuclear weapons in 1960 that forced the cancellation it by Eisenhower" was the subhead on the ship brought into Japanese ports. of President Eisenhower's visit. A an article by Robert Trumbull in the The October 14 Washington Post re Communist party speaker called for May 27, 1960, New York Times re ported that "seamen with firsthand "an even larger-scale movement" to porting demonstrations by more than knowledge of the Midway's arma block Ford's visit. two million persons throughout ments and cargo said the white or The mounting opposition to the Japan. silver nuclear bombs with red-painted presence of U. S. nuclear weapons in The "carnival spirit" in 1960 forced noses are kept in 'special ammunition' Japan—the country that experienced the Japanese government to cancel magazines under 24-hour guard by the world's only atomic bombings — Eisenhower's visit and led to the resig armed U. S. Marines." has been given a further boost by new nation of Prime Minister Nobusuke The bombs were aboard when the revelations that confirm the existence Kishi a month later. The current wave carrier left California a year ago, they of a secret agreement between Wash of protest— sparked initially by the said, and more were brought aboard ington and Tokyo permitting the Unit congressional testimony of retired at Subic Bay in the Philippines in ed States to move nuclear weapons Rear Admiral Gene LaRocque that February. Since then only one bomb through the country. U. S. warships carrying nuclear weap had been rerhoved, after it reportedly Citing "authoritative Japanese ons do not unload them before enter failed a "safety test." One crewman, sources," New York Times correspon ing Japanese ports —might be just as quoted by a Socialist member of the dent Richard Halloran reported Oc far-reaching in its effects. Japanese parliament on October 21, tober 27 that the agreement was made When LaRocque's testimony was claimed the Midway was carrying at in 1960 by Aiichiro Fujiyama, then made public in Japan on October 7, least fifteen nuclear bombs. Japan's foreign minister, and Douglas 15,000 persons demonstrated at Sase- MacAurthur II, the U. S. ambassador. bo, near Nagasaki, until the guided- Even after all this. Prime Minister The secret agreement was concluded missile frigate Warden and the Kakuei Tanaka still stuck to his de without a Japanese text so that the destroyer Gurke left. The next day the nials. "I am convinced that nuclear Japanese government could deny its nuclear-powered attack submarine weapons have not been brought into existence without fearing that a copy Pogy left Yokosuka, and when the air Japan," he said October 22. He of the document might be leaked. Only craft carrier Midway returned to claimed that Washington had told the U. S. officials recorded the agreement. Yokosuka Bay October 10, it was met Japanese government that it would "The sources," reported Halloran, by about 1,000 demonstrators. not bring nuclear weapons into the "said Japanese politicians at that time As more and more eivdence emerged country. did not wish to confront the nuclear showing that the U. S. was in fact According to a public-opinion poll transit issue in detail because it was bringing nuclear weapons into Japan, taken toward the end of September by too sensitive in domestic politics. Thus Tokyo continued to issue denials. For a leading daily, the MainichiShimbun, Japanese officials said to American eign Minister Toshio Kimura told par only 18 percent of the Japanese people officials, in effect, 'Go ahead and do liament October 14 that there was no support Tanaka's administration. it, but don't tell us or the Japanese secret transit agreenient with Washing Coming on top of disclosures this people about it.'" ton, and said he believed there were no month about Tanaka's crooked finan In a dispatch to the October 22 nuclear weapons aboard U. S. war cial dealings, the current storm of pro New York Times that appears to have ships in Japanese ports. test over nuclear weapons could ser been colored by a little wishful think- "As in the past," the October 15 iously weaken his government. □ November 4, 1974 The Cordoba Police Attack on us. And they hit us from behind. As they loaded us into the paddy wagons, we had to pass through a double line of police who rained still They Opened Up With Machine Guns more blows on us. "At the identification department we [The following description of the po sensitive in that area, they pounded were put into a room and forced to lice raid on the Cdrdoba headquarters on it all the more. Moreover, the keep our hands up from 8 p.m. until of the Partido Socialista de los Tra- women had to put up with all sorts 4 a.m. They blindfolded us. They bajadores (PST—Socialist Workers of insults and one young woman had didn't give us anything to eat. Some party, a sympathizing organization all her clothes ripped off. companeros were beaten again. of the Fourth International in Argen "After working us over for awhile, "On one occasion when we were with tina) appeared in the October 15 issue they led us to the courtyard still mis a group of companeros from the Com of Avanzada Socialista, the PST's treating us —insulting us and saying munist party, they beat us and forced weekly newspaper. The translation is that we had killed police and military us to yell, 'Long live the police,' by Intercontinental FVess.] men. They kicked us. They jumped 'Death to Cuba and Fidel,' and other

As part of the repressive sweep car ried out in Cdrdoba [October 9] dur ing which the headquarters of the Light and Power Workers Union was searched and Tosco and Salamanca were ordered arrested [see Interconti nental Press, October 21, p. 1347], the headquarters of our party was searched and vandalized. The following is the account of one I of the companeras who was present: "I don't remember exactly what time it all began. We noticed some sus picious movement outside, and several of us stuck our heads out the window to watch. We thought it was a fascist gang out to repeat what they had done in Pacheco.* We were a little surprised at the time—it was only about six in the afternoon—but we still thought it must be the fascists. Then they began to kick the door until they forced it open. They were in uniform, from the police. "They sprayed the headquarters and adjoining terraces with machine-gun fire and surrounded the building. Then a group of persons —some in plainclothes and some in uniform — entered and forced us to lie down where we were. Some companeros asked to see their search warrant, but the only response they got was kicks to make them shut up. "In the headquarters at the time were nine male and six female comrades. We were all beaten severely. One woman comrade is in critical condi tion because she had inflamed kid neys—she was being treated for it— - C. and since they realized that she was

"■ Three PST members were murdered by Avanzada Socialista rightist goons in Pacheco in May 1974. PST Cordoba headquarters after October 9 police raid.

Intercontinental Press things like that. the AAA [Alianza Anticomunista Q. When were the comrades released "When they let us out and we re Argentina — Argentine Anticommunist and the headquarters returned? turned to the headquarters, we found Alliance],' 'Long iive the Alliance,' a depressing sight. Papers were strewn 'Long live the riot police.' There were A. The judge made a ruling to this everywhere. They had broken all the swear words, initials of organizations effect at noon Friday.* When I got cabinets and emptied out the contents. having nothing to do with the party, to the headquarters, I was greeted The party bookstore had been de obscene drawings directed at the wom by a spectacle like something out of stroyed and the books were gone, en comrades, and also a big draw Dante. I have seen many searches, along with the money that had been ing of a lion, whose significance we many police operations, in my time in the headquarters. The eyeglasses don't understand. as a labor movement lawyer, which of some of the comrades were all to "They completely smashed the goes back quite a few years, but few gether where they had been stepped on mimeograph machine, threw paint in like this one. Both the condition of and smashed to bits. to one typewriter and carried off the headquarters and the injuries sus "Everything indicated that they had another one. They threw all the food tained by our members were some been there for hours, wrecking the on the floor; broke the chairs, tables, what exceptional. place. On the walls they left slogans and windows; and pulled the bathtub like 'Long live the police,' 'Long live out of the wall." □ Q. Has there been some public pro test on this?

An Interview With Enrique Broquen A Yes. At the same time; more or less, we called a press conference to which we invited journalists to photo The Police Raid on RSI's Cordoba Local graph the interior of the headquarters and some comrades who had cuts and bruises on their bodies. □ [Following the raid on the Cdrdo- formal demand for an explanation. ba headquarters of the PST, attorney Nonetheless, [the minister] Dr. Garcia * October 11, after the PST members had Enrique Broquen went to Cbrdoba Laval met with us at his office. been held for about forty-eight hours. to represent the party in this case. When he returned to Buenos Aires, Q. What was the upshot of that meet- Theater Bombed in Puerto Rico Avanzada Socialista asked him a number of questions. The interview A powerful bomb exploded at the Mo- that follows appeared in the October A. We had a very long discussion. delo Theater in Rio Piedras, Puerto Ri 15 issue of the paper. The transla The minister explained to me that the co, in the early morning hours of Oc tion is by Intercontinental Press.] search had been carried out on a ver tober 8. The theater had been showing bal order issued by Judge Zamboni a week-long series of films in commemora Ledesma, which was based on a tion of the death of Ernesto Che Gue charge of possessing arms in the head vara, who was killed in Bolivia October Question. When did your work begin quarters and the suspicion that there 1967, by U.S.-trained armed forces. The film showing was sponsored by in Cordoba? were guerrillas taking refuge there. Tirabuzon Rojo, a film group associated I told him that the companeros had with the Puerto Rican Socialist party Answer. As soon as I arrived, the been subjected to mistreatment, and he (PSP). first thing I and the compafiero who stated his disapproval of such abuses. The explosion, which occurred near the accompanied me did was to go to With respect to the arms found, Imade front entrance to the theater, partially de central police headquarters. But they it clear to him that we had verbal au stroyed the interior of the building and refused to see me. thorization from the minister of the broke windows in many nearby stores. interior to have whatever was neces Police estimate the damage at several thou Q. And then? sary to defend our headquarters from sand dollars. The theater is located only a few blocks possible attacks. away from the Rio Piedras campus of A. We went to try to talk with the the University of Puerto Rico, which, as Radical [petty-bourgeois liberal] bloc Q. What was the main topic of dis the country's largest college, is a center in the legislature. They did meet with cussion with Garcia Laval? of proindependence activity. us. The Radical legislators promised Proindependence student leaders believe to introduce, in the state legislature, A. Well, speaking as a minister, he that the bombing was the work of gu- a formal question to the government assured me that the federal govern sanos, anti-Castro Cuban exiles, who have minister about the reasons for the ment was ready to make a distinc carried out several such terror attacks search of our headquarters. A meet tion between the guerrilla organiza in the past. ing of the Radical parliamentary dele tions and the legal parties. But in view Earlier this year the offices and print gations, the chairman of the Frquli of what had happened, I asked him if ing plant of Claridad, the PSP's twice- weekly newspaper, were attacked. The po [Frente Justicialista de Liberacidn Na- it meant that we had to close our lice in this U.S. colony have taken no cionai—National Liberation Front Cdrdoba headquarters. The minister effective action to stop those responsible for Social Justice] parliamentary dele assured me emphatically that it did for these and other attacks on support gation, and the minister took place, not, that the government was willing ers of the independence movement and but it didn't have the character of a to give us guarantees to the contrary. the Cuban revolution.

November 4, 1974 Hoarders, Block Marketeers Drive Up Food Prices never reach the millions of starving refugees in Bangladesh. A report in the October 3 Washington Post stat ed, "Until recently . . . only about 1 per cent of food in the rationing sys Bangladesh Ravaged by Hunger tem was distributed as emergency re lief to people most in need of it, ac At least 100,000 persons may starve to Bandladesh. cording to one economist's estimate. to death in Bangladesh before Decem- Kasturi Rangan reported in the Oc- The rest went to soldiers, policemen, ber, according to Dr. E.S. Hain, the tober 11 New York TVmes that Dacca civil servants and people with in- acting head of the United Nations has arranged to import a total of fluence who were able to obtain ra- World Health Organization. Bangla 900,000 tons of food from other tion cards." desh Food Minister Abdul Momen ad sources, including a gift of 5,000 tons But since the floods, the report went mitted that many have already died, each from the Chinese and Pakistani on, allocation of food aid to emer estimating the number at less than regimes. gency relief has increased — to 10 per 5,000 so far. Much of the food aid, however, may cent. □ According to official estimates, the recent widespread flooding destroyed at least 40 percent of the 1974 crops and left fifteen million Bengalis, most ly peasants, homeless. In an October Forty-Nine Die in Clashes 7 dispatch from Dacca, New York Times correspondent Kasturi Rangan reported that the city's population in creased in the previous two weeks by Portuguese Troops Attack Mozombicans 300,000, as refugees streamed into the capital in search of jobs, shelter, Forty-nine persons were reported a joint Frdimo-Portuguese military and food. killed in Mozambique October 21-22 commission to oversee the cease-fire.) Jobs were scarce, however, and only in the first major clashes between Af- The joint patrols arrested units of re 10,000 refugees found "shelter" in the Portuguese troops since bellious Portuguese commandos, and 107 relief camps set up in Dacca the coalition regime was installed Sep by morning the fighting had stopped. (about three million refugees live in tember 20. The new outbreak of fight An October 22 Reuters dispatch de relief camps throughout the country). ing came less than seven weeks after scribed the scene after the night of According to official figures, 100 per the abortive rightist coup in early fighting: "Shops, offices and restau sons die every day in the camps. September that left between 100 and rants were open only hours after the In addition, as N.M. Harun ob 200 dead. rioting — but the blood-stained side served in the September 29 issue of The clashes in Lourengo Marques walks, wrecked cars, and still-smoul the Dacca weekly Holiday, the prices were started by off-duty Portuguese dering suburban homes revealed the of food have skyrocketed since the troops who assaulted an African extent of the night's clashes." floods. As of September 29, a maund youth wearing a shirt decorated with After the barricades and roadblocks (about 82 pounds) of rice cost around the flag of Frelimo (Frente de Liber- were lifted October 23, long lines of 300 takas (about US$42) on the open tagao de Mogambique — Mozambique whites formed outside the South Afri market In August, a maund sold for Liberation Front). Later a group of can consulate to obtain visas to cross about 160 takas. Harun wrote that Portuguese commandos fired on Fre the border. "though there is real shortage there limo troops guarding the offices of Portuguese High Commissioner Vi- is no reasonable explanation why the the newspaper Noticias. The Frelimo tor Crespo said that the arrested Por prices should shoot up almost three troops returned the fire, and other tuguese commandos faced punish times; hoarders, blackmarketeers, un Africans joined in the clashes with ment, but other military sources ad scrupulous businessmen are manipu the Portuguese. mitted that most of the 240 Portuguese lating the market . . ." The attacks stirred up the inhabi troops taken into custody during the According to official figures, Harun tants of the Black shantytowns that clashes had been transported back to wrote, the regime's food stocks are surround Lourengo Marques. Crowds Portugal. almost exhausted, with a shortage of of angry Blacks converged on the The Stockholm daily Aftonbladet re about 2.8 million tons. city, and a number of confrontations ported that wealthy Portuguese in Eu In August, Dacca asked Washing with Portuguese settlers occurred. Spo rope were trying to recruit mercen ton to provide 500,000 tons in aid. radic gunfire could be heard through aries to fight in Mozambique. The But when Bangladesh Prime Minister out the night newspaper quoted Swiss businessman Sheikh Mujibur Rahman visited Wash Barricades and roadblocks were set Hans Lenzlinger as saying that he ington in early October, he was un up by Black soldiers, who searched had been asked to be the recruiting successful in obtaining that much U.S. cars driven by whites for weapons. agent. Although Lenzlinger denied ac food aid. In return for Dacca's agree Joint patrols of Frelimo and Portu cepting the job, Aftonbladet reported ment to stop selling gunny sacks to guese troops toured the city appeal that he had made plans to hire 500 Cuba, Washington pledged to send ing for order. (The accords signed mercenaries in ' Sweden and another only 150,000 tons of wheat and rice with Lisbon September 7 provided for 500 in Germany and Africa. □

Intercontinental Press First Poll Since Downfall of Junto citing Zigdis as an "important and shining exception." • The far right (the militarist fas cist currents) has formed the Ethnike Demokratike Enosis^ under the lead The Lineup in Greek Elections ership of Petros Garoufalias. Its mouthpiece is Constantanopoulos's [The first parliamentary elections in tivating confusion on three points — Eleutheros Kosmos [an Athens daily Greece since 1964 are to be held in amnesty for those guilty of crimes newspaper], which defended the dicta mid-November. In its October 19 is under the junta, the composition of torial governments of the past seven sue, the Greek Trotskyist weekly Er- the regime, and the policies to be fol years and which today is carrying gatike Pale offered the following sketch lowed. He has attacked the EK as on a veiled propaganda campaign of the lineup of political forces. The "a coalition party"[that is, a supporter translation is by Intercontinental of the Caramanlis government], while 4. National Democratic Union (EDE). Press.]

The following blocs have formed for the November 17 elections. Popadopoulos Exiled to Island in Aegean • The Enosis Kentrou has joined litical dissidents; and Michael Roufogalis, with the Nees Folitikai Dynameisi to former chief of the Greek intelligence ser form a "democratic center" bloc entitled vice. "Enosis Kentrou-Nees Folitikai Dyna- The government of Premier Constantine meis." Caramanlis announced that the five "are [loannis] Zigdis, who is standing engaged in conspiratorial activities, which as an independent, has repeated his cause uneasiness and create conditions criticisms of [George] Mavros's posi threatening the peace." However, it provid tion. 2 ed no details. • The Fanellenio Sosialistiko Kine- Occurring less than four weeks before the scheduled November 17 general elec ma has fused with Demokratike Amyna.3 A seventy-five-member pro tion, the seizure of the junta leaders ap peared to be in response to opposition visional Central Committee has been leaders' criticism of Caramanlis for not formed, consisting of elements repre acting more decisively against the former senting various tendencies. This het military rulers. erogeneous combination, however, is A few days erurlier, Andreas Fapan likely to undergo splits. dreou, leader of the Pan-Hellenic Socialist In his statements, A. Fapandreou Movement, charged that the premier had has stressed that there cannot be any made a deal with the former leaders of fear of a coup because one has al the junta and would never press charges against them. ready been carried out. He charges Caramanlis's move may well have been that the government is deliberately cul- designed to postpone bringing Papado- poulos and his friends to trial. The public 1. Center Union (EK), the bourgeois lib prosecutor recently released a report eral party, and New Political Forces charging Papadopoulos; his successor. (NPD), a grouping of Social Democratic General Dimitrios loannides; and twenty- coloration. four other police and military officers with "moral responsibility for premeditated 2. Zigdis was one of the main figures multiple murder" in connection with the of the EK during the dictatorship. He assault on student demonstrators at the has denounced the present chairman of Athens Polytechnic University last No the party, Mavros, who has served as To keep close watch on political oppo vember.' Thej junta had' admitted to eigh foreign minister in Caramanlis's cabinet, nents, dictator preferred prison islands. teen deaths in the attack; the prosecutor for abetting the prime minister's "Gaullist" says at least thirty-four died; and the plans. The EK also split in the crisis of actual total may well exceed fifty. the mid-1960s between the rightist bloc, Former Greek dictator George Papa- Still unclear is the fate of loannides, grouped around the throne and the army, dopouios and four other leaders of the who held the top post in the junta from and a more liberal faction represented by 1967 officers' coup were arrested October last November until July, when the junta Andreas Fapandreou that hoped to carry 23 and exiled to Kea, a small island resigned in favor of Caramanlis. The As out some bourgeois democratic reforms. sixty miles southeast of Athens. sociated Press reported in an October 23 The four others are Stylianos Fatakos, dispatch from Athens that "five national 3. Pan-Hellenic Socialist Movement a former minister of the interior and depu police officers who went to arrest loanni (PASOK), the party of A Fapandreou, ty premier; Nikolaos Makarezos, former des found his Athens home empty. An and Democratic Defense (DA), an under ly in charge of economic coordination; intensive search was under way, especial ground group organized to oppose the loannis Ladas, head of the military po ly among military police units considered junta. lice and director of mass arrests of po still friendly to him." □

November 4, 1974 to push the idea that a new dictator Report Contradicts White House Claims ship is needed to block the "Com munist threat." Behind Garoufalias's EDE can be seen the shadow of Ladas and other elements of the junta's re Repression in Chile Worse Than Ever gime. •The old Ethnike Rizopastike Eno- sis6 of Caramanlis, which was rejected Political repression in Chile is now (Movimiento de Izquierda Revolucio- by the voters, is running in these elec "more ubiquitous and more system naria—Movement of the Revolution tions under the alias "NeaDemokratia" atic" than at any other time since ary Left). [New Democracy]. It has rallied some Allende was overthrown in September • In addition to these arrests of "new political personalities," that is, 1973, according to a report released individuals, in recent months 10,000 opportunist figures like Giannis Tsi- October 23 by the International Com to 15,000 persons have been detained rimokos.6 mission of Jurists. in massive roundups in the shanty- •The Enomene Aristera? seems "For every detainee who has been towns. The commission concluded that likely to maintain the broad influence released in recent months," the com- the roundups are an effort to intimi among the popular strata as well as date the population, pointing out that the support of the bulk of the political most of those arrested in these raids ly aware workers that was previously are released in seven to ten days. enjoyed by the ED A. The commission's findings also The Revolutionary Marxist move stated that General Augusto Pinochet's ment (the Trotskyists of the Fourth September 11 announcement that the International) are unable to run then- "state of war" was being lifted and that own candidates because of the restric most prisoners who were prepared to tive clause contained in paragraph 2 go abroad would be released was "de of Article 1 of Decree-Law 59.8 signed for external consumption." However, the Revolutionary Marx ists are preparing to give critical but The Chilean legal system, the com active support to the Enomene Aris- mission reported, "continues to contra tera. In this, they intend to stress the vene basic principles of justice ac need for an anticapitalist united front cepted by civilized nations." to organize the left and the radicalized Neues Deutschland More than 22,000 persons—15,000 masses in extraparliamentary class mission reported, "at least two new Chileans and 7,500 foreign resi struggles. □ dents— have been driven out of Chile arrests have been made." since the coup, according to a report The commission, a forty-member group based in Geneva, is supported in the September 22 issue of the 5. National Radical Union (ERE), the Mexico City daily Excelsior. main conservative bourgeois party. by lawyers organizations in fifty coun tries and is recognized by the United The International Commission of Nations. Among its members are Jurists published its report just one 6. Nearly all the additions to Caraman day after the White House delegation lis's "enlarged" party are former EK mem former French Premier Edgar Faure; abstained from voting on a UN reso bers of parliament who were induced by Masatoshi Yokota, former chief justice lution urging the Pinochet government rightist pressure and money to turn of the Japanese Supreme Court; and to restore human rights and to free against the Papandreou government in Adetokunbo Ademola, former chief 1965. It was these elements that brought justice of Nigeria. political prisoners. The basis for the abstention, according to W. Tapley the government down and paved the way According to the October 24 New for the military take-over. Their prestige Bennett Jr., a member of the Ameri York Times, "the commission gathers is not very high in postjunta Greece. information for its reports from law can delegation, was that the resolution contained no hint of the improvement yers on the spot, observers sent to 7. The united left bloc consisting of the in the situation in recent months. □ two factions of the Greek Communist par follow trials and special teams such ty and the Enosis tes Demokratikes Aris- as the three-man group that went to teras. The EDA (Union of the Democratic Chile last May to study the situation Left), the old CP electoral front, also in there." cluded some petty-bourgeois democratic The commission's report provided Defendants, Citing Nixon Pardon, elements. the following statistics on recent Demand Lenient Treatment in Court arrests: Federal prosecutors said during a recent 8. The passage in question reads: "Before • From May to August, the junta four-day conference with Justice Depart engaging in any activities, the existing made 700 known arrests of political ment officials that defense attorneys political parties or any organized in the suspects. Most of the arrests were car around the country were urging juries to future must submit to the Supreme Court ried out without warrants, by uniden acquit their clients and asking judges to a statement by their president or the mem give light sentences on the basis of the tified persons in civilian dress armed bers of their Executive Board swearing leniency given to Richard Nixon and with machine guns. that the party's principles are opposed Spiro Agnew. They also said that some to any activity whose aim is the forcible • Six hundred arrests have been juries had refused to convict a defendant seizure of power or the overthrow of the made since the killing October 5 of because of the handling of the Nixon and free democratic form of government." Miguel Enriquez, leader of the MIR Agnew cases. ;

Inferconfinenfal Press 'The Official and the Revolutionist'

A Note on Careers of Bejor and Blanco

By Gerry Foley

Recently, Hector B6jar, a former from the party in 1958. bourgeois regime like that of Prado, guerrilla leader and at present an of Like many others of his generation which alternated repression with ne ficial in a Peruvian state body, visited and background, Bejar went from a gotiation. But after the military coup Sweden, as a special guest of the Swed party that claimed to be trying to of 1962, this proposition was of no ish government. solve the problems of the masses by use in confronting the army, which Since another well-known former Pe building a perfect political machine had taken power to 'establish order' ruvian guerrilla leader — one who has for "delicate" parliamentary maneu and to settle accounts, among other followed a course very different from vers and behind-the-scenes negotia things, with the peasants of La Con- that of B^ar — lives in Sweden, the tions to a military group that hoped vencidn. country's leading newspaper, Dagens to defeat the enemies of the masses "Anyone who wanted to keep in Nyhetev, thought it had the material by building an army to fight their close contact with the masses despite for an interesting feature. It arranged battles. In both cases, the strategy the repression had to resort to the a meeting between Hector B6jar and was to be strictly anti-imperialist, not guerrUla tactic. But this decision re the Trotskyist peasant leader Hugo socialist, and designed to unite all quired absolute clarity on the meth Blanco, who was deported from Peru the patriotic elements. ods to be applied. in 1971, subsequently deported from Thus, B6jar did not support, or ap "This condition was not present. And Argentina in 1972, escaped from Chi parently understand, the line applied at the beginning of 1963, after the le in 1973, and has been denied by the Peruvian Trotskyist leader Hu clashes in Pucyura, Blanco, alone and asylum in any Latin American coun go Blanco, which was to mobilize the abandoned, fell into the hands of the try. masses on the basis of their most police For this the left in general, and The report of this meeting was pub immediate concerns and educate them especially the revolutionary left, bore lished in the October 14 issue of Da politically through carrying this strug a serious responsibility. gens Nyheter under the title "The Of gle forward. He attributed the gov "As a result, the masses in La Con- ficial Meets the Revolutionist." ernment's successes in repressing the vencidn and Lares did not go over Hector Bejar was one of the leaders peasant union led by Blanco to cer into guerrilla struggle, which was the of the Ej^rcito de Liberacion Nacio- tain illusions on the latter's part, ap logical culmination of the process that nal (ELN—National Liberation Ar parently with regard to the organiza began in 1956." my), a guerrilla group active in Peru tion of armed struggle. B6jar wrote in 1965. He is best known, however, in his book: Actually the armed resistance of the for his book on this unsuccessful cam "Blanco wanted 'the Peasant Union peasant union led by Hugo Blanco paign, Apuntes Sobreuna Experiencia to develop gradually into a real or was more extensive and prolonged Guerrillera (Notes on a Guerrilla Ex gan of democratic people's power than any of the other guerrilla ex perience. For an English translation, which at every step would more vigor periments in Peru in the 1960s. Bd- see Intercontinental Press, 1970, issues ously confront the power of the bosses jar's disagreement with the mass peas 2 to 10.) represented by the ranchers and all ant leader's orientation led him to In 1969, this book won the nonfic- the state forces in their service.' . . . focus only on the fact that this resist tion prize of the Cuban state publish "The basic instrument of armed ance had proved unable to defeat the ing house, the Casa de las Americas. struggle, according to this thesis, was repression launched by the govern It was one of the most widely circu the union militia led by the party. ment. lated of the books that came out of But this did not mean that the mo Blanco's own explanation for this the numerous guerrilla experiments of ment had come for struggling for defeat was that the struggle in La the 1960s that were encouraged by the power: Convencion was isolated by the lack example of the Cuban revolution. It "'The objective in this stage,' Blanco of a revolutionary party effectively was also one of the most concrete said in 1964 from his prison in Are- organized on a national scale. and thoughtful. quipa, 'is not an immediate struggle An important factor in the isola Like many of the guerrillas in the for power or to overthrow the Bela- tion of the struggle in La Convencibn 1960s, Bear's first political educa unde government. More modest and was the sectarianism of the Commu tion came from the Stalinists. He defensive objectives are on the agen nist party and the currents that had joined the Peruvian Communist par da— defending the peasant land oc their origins in it Bqar, unlike others ty as a teen-ager and later rose to cupations from attack by the armed of his background and orientation, the Central Committee and the posi forces and the landlords.' was able to see this and honest enough tion of editor of the party paper. Af "The thesis of dual power and mili to condemn it. He was also honest ter he developed differences with the tias could have achieved success as enough to recognize many of Blanco's line of "peaceful and parliamentary a mass slogan and could have been achievements. roads to socialism," he was expelled propagated and followed under a "Hugo Blanco's participation in the

November 4, 1974 organizational activities of the unions being broken, and the preexisting so guerrillas, a number of whom were led to a rise in the level of struggle. cial structure altered. It was the first given posts in the state administration 1961 and 1962 can be considered defeat of such proportions to be suf or semistate bodies. Bqar was one the high points of the union wave. fered by the latifundio — a de facto of these. "But Blanco's revolutionary ideol agrarian reform had been realized." The new government continued, ogy aroused the jealousy of the former As the crisis in Peru deepened, a however, to repress all strikes or mass heads of the Federacidn Provincial, reformist military junta took over in protests that did not fit in with its and his Trotskyism aroused the dis 1968 in an attempt to head off a program of building national capital. trust of the Communist leaders of the general explosion. One of their con For example it crushed the teachers' Federacidn de Trabajadores del Guz- cessions was to release most of the strike of 1971 by arbitrarily deport co. When he was named general sec political prisoners jailed by the Be- ing its leaders. This was to be the retary of the latter in 1962, the elec laiinde government, including Blanco, new pattern for dealing with the "un tion was contested by some members. in late 1970. cooperative" left — exile rather than Meanwhile the Lima government or imprisonment. Blanco, who had ex dered his arrest. The government made a number of posed the nature of the junta's land "Then came the violent period of nationalist moves, such as a partial reform and spoke in support of the persecution that culminated in his be land reform designed to shift capital striking teachers, was exiled along ing taken prisoner in May 1963. The into industry and nationalization of with the strike leaders. government had freed itself of Blanco some of the imperialist holdings. So, the differences between Hugo but it had not been able to avoid These reforms won the regime the sup Blanco and Hector B^ar have con thousands of peasants freeing them port of most of the left, including the tinued in a new form after the political selves, the power of the hacendados Communist party and many former shift in Peru. □

Interviewed In Sweden

Hugo Blanco and Hector Bejor Cross Swords

[ The following article, by Birgitta to the German Democratic Republic. League of Sweden] in Stockholm and Nyblom, appeared in the October 14 Bommersvik, the ABF [Arbetarnas issue of the Stockholm daily Dagens BUdningsforbund — Workers Educa Nyheter. The translation from the tion League] in Stockholm and Vas- Swedish is by Intercontinental Press.] "When are we deportees going to teras, TRU in Stocksund, and at the be allowed to return to our country?" end of the week got a look at the state This was the question Hugo Blanco ministries and the functioning of the put directly and repeatedly to Hector municipal government in Botkyrka. Two guerrilla leaders in Peru were B^ar when the latter visited him in Hugo Blanco, who had previously released around Christmas, 1970, Harnosand. Hector Bqar explained found refuge in Chile, came to Sweden when the new military regime had that the government would have to last winter and took a job as a teach been in power two years. They were answer this question. He chose instead er in Sandoskolan, an auxiliary Hugo Blanco and H&tor B^ar. They to talk about what has been done in school in Kramfors to the north of had been held in various jails as po recent years —the land reform; the na Harnosand. At present he is under litical prisoners, Hugo Blanco the tionalization of the mines, the banks, going treatment for a back problem longest. On Saturday they met in Har- private property, and means of pro in the orthopedic clinic at Harnosand nosand in quite different circum duction; as well as the much higher hospital, and that is where Htoor B^ stances. Hugo Blanco is living in ex levd of political consciousness among jar came to visit him. Hugo Blanco ile in Sweden, having been deported Peruvians. Personally, he hoped Hugo is a Trotskyist, a member of the from Peru in the fall of 1971. Hector Blanco could come back and discuss F ourth International (like many of B^jar is a high official in the state politics both inside and outside Peru. his compatriots who have worked or agency Sinamos [Sistema Nacional de Hector Bejar was here to study how studied in Argentina, as he did). Apoyo a la MovUizacidn Social — Na the Swedish workers movement mo There was no real dialogue between tional Network for Supporting Social bilizes its forces in the trade unions Hdctor Bejar and Hugo Blanco. The Mobilization], whose function is to or and in its adult education programs. question was the program of social ganize the people's movement in Peru, He had a packed schedule and visited reform and the sharp political shift in in particular the trade unions. The the Social Democratic party offices, Peru, and the discussion was an ex meeting was held at Dagens Nyheter's the LO [Landsorganisation—Nation change of words between one exclud initiative and was the final event of al Federation of Trade Unions], the ed from this process and another in a week's visit in Sweden for Hector metalworkers union, the SSU [Sveri- volved in it. The period since the guer B6jar. He was here as a guest of the ges Socialdemokratiska Ungdomsfor- rilla struggle has been marked by F oreign Ministry and went on Sunday bund — Social Democratic Youth such tensions between those who

Intercontinental Press stayed in their, country and those who or less pay? The important question the duty of all Peruvians today to fled or were forced to flee. for Latin America and Peru is not fight against the threat from the reac Blanco. "Are there still political pris this. It is; Have the government and tionary countries that surround Peru, oners and are there still people in the people in my country taken up and that the left-wing refugees should exile? I think that any political dis the struggle against imperialism or be allowed to return for this purpose. cussion about Peru should be carried haven't they? Are thay making great The letter was subsequently published on inside the country." efforts to carry out a social revolution, in the Lima daily El Expresso.) B^ar. "I do not represent the gov or aren't they?" Blanco. "I am asking: When is the ernment. But I am content to work Blanco. "I asked a question and Peruvian government going to let the as an official in this regime because Hector can't seem to answer it. When deported anti-imperialists return it has nationalized all the national is the Peruvian government going to home? We are not talking about the resources and carried out the land let the revolutionists it has deported government being fascist but about reform we both fought for. It is also return? They have an interest in the the fact that it has no authority to building up a mass movement so that situation in their own country. They debate political questions with those it can become less and less an exclu have fought against imperialism and it has deported from the country." sively military government and in want to return to Peru. They want to Bgar. "I'm glad Hugo is slowly creasingly a revolutionary govern discuss everything that has happened, coming around to the political dis ment. A fusion is taking place between the regime, or any other question. cussion he wants to avoid. He does the officers and the people's revolu "But they don't want to do this in not think my government has tionary leaders. Sweden. We are being deprived of the moral weight or authority? Why "What defines a government or a re right to talk to our own people. I de shouldn't it have this kind of au gime is not its military character but mand that this injustice be ended. You thority? Why should a government what it does against imperialism (for can't ask the political refugees from that has expelled most of the impe eign domination) and against the oli Chile to debate the situation in their rialist companies from our country, garchy (the rule of a few within the country with the government. That that has expropriated almost all the country) and the groups that have would be the same as asking the Jews big landed estates, that had deported in the German concentration camps to dominated the country for many the oligarchic families that made up years. Most of the Peruvians in exile debate with Hitler. our ruling class, not have moral au b elong to the oligarchy. I am sorry "I want to know clearly and in a thority? that a man like Hugo Blanco who few words whether the Peruvian gov "In the revolutionary process in Peru has made an important contribution ernment is willing to let the deported I know that a new peasant organiza to the people's struggle in our coun revolutionists return." tion is being buUt. In it are many of try is also in exile." Bcjar. "I have said that I do not the agricultural workers that fought represent the government and that it Blanco. "It seems as if Hector did alongside Hugo Blanco in the 1950s is the Peruvian government that will and 1960s. I would hope that he will not understand my question and its answer Hugo. That doesn't mean that intent. In exile here is Rolando Brena, come back to this question and dis I don't have an opinion of my own cuss politics. I would only point out the Peruvian student leader. The stu about this. I think that Hugo Blanco dents did not choose him from among that a revolutionist should not take and his comrades should return to a shrill and spiteful attitude." the oligarchy. Nor was this the case Peru, and I have never concealed this for the leader of the teachers' strike Blanco. "It's laughable to hear a view. or of the mine workers, for Naturi "In my opinion, making a compari government official say that I'm avoiding political discussion, I whom Cuentas, or Gustavo Rui de Sommo son, or simply mentioning Pinochet or Cursos, who took part in the Arequipa Hitler in such a way as to imply a they have driven to Europe. B^ar strike. comparison, with Velasco's govern knows what befits a revolutionist. But I know what characterizes an official, "These comrades do not belong to ment reflects great political confusion. and that is giving speeches and not the oligarchy; they took part in the There are some persons in my coun workers struggle. They have been de try who say that what is going on is concrete answers." ported. No law in my country au not a revolution but fascism. How B^'ar. "Actions by the imperialist thorizes such deportations. Has this ever, we are not going to give any groups are a present and a future illegal situation been ended yet?" fascists permission to return and fight danger. That's no speech. That's a B^'ar. "It's incredible that Hugo fact. us. Blanco should concern himself about "Moreover, when Hugo and I were "Hugo knows that I am not just the existence of bourgeois laws! If we fighting, we did not ask reformist gov talking about a physical return to had observed all the bourgeois laws, ernments, Belaunde's for example, Peru — which is important — but a nothing would have changed. At this for permission. We simply crossed spiritual and moral one. We revolu moment in my country a dialogue of tionists have a duty today in Peru to frontiers. We did not ask any ambas equals is taking place. Among the declare openly and clearly whether sador for permission to fight for our participants are the president of the we support the process the country people." republic, Juan Velasco; the minister is going through—as this process is of the mines; and the leaders of the (Bqar was referring to the appeal actually developing, with all the ques teachers and mine workers unions. Blanco made last spring to the Peru tions and criticisms we may have "Are we going to discuss how many vian ambassador in Stockholm to ar about it— or whether we are against people we have deported or whether range for his return. He wrote the it That is no speech." the military officers are getting more ambassador a letter saying that it was Blanco. "It's impossible to get an November 4, 1974 , answer, so there's nothing more to via, an escapee from Chile and a doc same page with a translation of the say." tor in the orthopedic clinic, exchanged full text of the October 14 Newsweek Bgar. "I'm sorry Hugo has noth a few words with Hector Bejar. May article and the fuU text of the inter ing more to say." be he would go back to Latin Amer view, Etelaat felt compelled to run an As the conversation fell into silence, ica soon. Could he go to Peru, which editorial denouncing the U.S. maga Harnosand's sunny autumn sky was borders on his country? zine. still bright outside the window. Kerstin Dagens Nyheter asked Hugo Blanco "The reason behind Newsweek's re Lindblad from Sandoskolan, who what he would do if he were an of porters' uneasiness should be sought translated the discussion, hurried back ficial in Peru. in the fears of reactionary circles," the to a Saturday seminar on Latin Amer "Today, I am a revolutionist," he editors of Etelaat stated. "It was not ica. Dr. Antemor Velasco from Boli said. □ too long ago that an American official said, 'Iran's power will turn it into a dangerous giant, even against us.'" Fifty Publications Shut Down In reply to the charge that one out of eight Iranians works for SAVAK, the editors said: "It is obvious that this figure is not acceptable to even the Shah Purges Iranian Press most uninformed observers. There are sufficient documents to demonstrate By Majid Namvar that the Iranian Security Organiza tion has fewer than 3,000 persons at its services." The newspaper did not, The regime of Shah Mohammed reason behind the crackdown on the of course; produce any such docu Reza Pahlevi has carried out a mas press. Twelve artists, filmmakers, and ments. □ sive purge of the Iranian press. journalists were arrested in connec According to a report in the Sep tion with this "plot." Following a OPEC Founder Criticizes tember 26 Financial Times of Lon frame-up trial, two were executed last Oil Trusts' 'Excess' Profits don, more than fifty newspapers and February; the others were given sen Gil prices could be lowered if the Or magazines have been banned in the tences ranging from three to five ganization of Petroleum Exporting Coun tries established controls on companies' past two months. In addition, eighty years. profits, according to Juan Pablo Perez journalists have been fired and for "The shah ordered that a committee Alfonzo, Venezuela's former minister of cleanse the information media of those bidden to write. mines and hydrocarbons and a founder In an interview with Newsweek cor deemed security risks or whose in of OPEC. respondent Edward Behr, the shah ad fluence was thought unhealthy," Speaking to postgraduate students in mitted that "95 percent of our press Housego reported. petroleum studies in Caracas October 19, suddenly stopped publishing." The The October 16 issue of the Tehran Perez Alfonzo said that the oil companies shah told Behr that the government daily Etelaat printed the full text of in Venezuela —led by Exxon, Shell, Gulf, had recently decreed that only those Behr's interview with the shah. (The and Mobil — made $4,125 thousand mil newspapers and magazines with a cir October 14 Newsweek, in an article lion in "excess" profits last year. He esti mated they were making 39 percent profit culation of more than 3,000 would on Iran, quoted a few sentences from per barrel when a "reasonable" profit the interview.) be permitted to continue publishing. would be 15 percent. An indication of the extent of the "If you read the remaining news Perez Alfonzo claimed that Venezuela's purge can be seen from the fact that papers," the shah said, "you will find decision to nationalize the petroleum in even the government-controlled press in them as much criticism as in those dustry next year could drive down prices has come under attack. According to of other countries. Whether you like by eliminating the companies' "excess the Financial Times report, a number it or not, here you cannot insult the profits. of the journalists who were fired king. If newspapers do not insult the king, however, it is not because we do worked for the maj or government-con Anaconda, Kennecott Copper Clean Up trolled daily, Kayhan. Other periodi not have freedom of the press." on Settlements With Chilean Junta cals that were purged include Echo In its October 14 article; Newsweek One of the economic benefits derived of Iran, Setarye Islam, and Ferdosi. reported: "By some estimates, as many by Wall Street from the overthrow of the Several book publishers have also as 60,000 Iranians are full-time Allende regime in Chile was made public been shut down by the shah; others SAVAK operatives. What's more; ac October 24, when the Anaconda Company are continually faced with difficulties cording to a Western diplomat in Tehe reported that its third-quarter profits had when they submit their books to the ran, one out of every eight adults increased 777.5 percent. The increase is censor. As a result, the number of in the country is at least an occasion largely due to a $65 million payment — books published is reported to have al informer." the first installment in a $253 million dropped to one-tenth the number pub ". . . one SAVAK agent," the article settlement—by the Chilean junta for two lished last year. continued, "bragged to Behr that Iran Anaconda copper mines that had been ex propriated by the Allende regime in 1971. According to Financial Times cor has 20,000 political prisoners in Also announced October 24 was a $68 jail. . . ." respondent David Housego, the al million settlement the junta is to pay to leged plot to assassinate the shah and The wide publicity being given to Kennecott Copper in compensation for kidnap three members of his family the shah's repression has put the Iran Kennecott holdings taken over by last October has been cited as one ian press on the defensive. On the the Allende regime in 1971.

Intercontinental Press The Real Source of the Flood of Petrodollars

An Arab and Iranian Finance Capital Emerges By Ernest Mandei

[The following article appeared in the in the West or is returned there in the countries that do not export oil; their October 17 issue of Inprecor, a fortnight form of payment for supplementary com deficits threaten to worsen. ly news bulletin of the United Secretariat modity purchases or in the form of of the Fourth International.] various investments. A New Finance Capital Emerges In fact, the opposite thesis has much greater foundation. By being placed on a At the Tenth World Congress of the short-term basis in American or European Fourth International, many delegates were banks, petrodollars feed the inflation of surprised, and probably even a little The increase in oil prices since the Octo ber War of 1973 has considerably in credit and thereby the inflation of paper shocked, at our assertion that the enor money rather than contributing to defla creased the currency incomes of the oil- mous and rapid accumulation of capital producing countries, especially the Arab tion. in the hands of the owning classes of the It is true that part of these petrodollars oil-producing countries due to the big rise oil producers and Iran. This enormous have served to "soak up" American and income—estimated to reach $75,000 mil in oil prices was giving rise to the emer English treasury certificates, which are lion during 1974 —can be utilized in the gence of a new, autonomous Arab and thus withdrawn from their usual buyers following ways: Iranian finance capital. (the private banks), and this has contri Since that time, what had appeared as 1. It can be hoarded, that is, held by buted to reducing these banks' possibilities central banks in the form of backing for a potential tendency has fully flowered. of extending credit. But the real cause of national currencies or in the form of gold The purchase by the shah of Iran of 25 or currency hoarded by private propri this restriction of credit lies not in the percent of the stock of the West German buying of short-term public bonds by the etors. Krupp trust was the generally perceived 2. It can be placed on a short-term oil exporters, but rather in the fact that signal of the appearance of a new, inde basis in foreign banks or international the American and British central banks, pendent sector of international finance institutions or utilized to purchase public engaged in a deliberate policy of defla capital. short-term bonds in the imperialist tion and restriction of credit, have not Finance capital is banking capital countries (treasury bonds). expanded the volume of their operations (money capital) that is invested in the 3. It can be spent unproductively on on the world monetary market in propor productive sector (industry, transporta importing materials that do not enter into tion to the growth of the purchase of these tion, etc.) and participates in the control the process of reproduction of com bonds by the "Arab sheikhs." of these sectors, even monopolizing that modities: arms, luxury items, and so on. At present, it is difficult to estimate the control. In this sense, it is distinct from 4. It can be used to import productive proportion in which the income of the rentier capital, which is content to hold goods serving to accelerate the accumula oil producers is divided among the five stock portfolios and clip coupons. tion of capital and the production of com means of utilization mentioned above. In The information that is steadily flowing modities within the oil-producing coun general, however, it can be estimated that in about the behavior of the possessing tries. (Imports of food and consumer com $30,000 million will be used in 1974 classes that are collecting the income from modities serving to reproduce the labor to increase imports of commodities and the export of petroleum leaves no room force also fall into this category.) to make various investments within the for the slightest doubt that the dominant 5. It can be put into long-term invest oil-producing countries (categories 3 and sections of these classes are now going ments abroad. Here several categories 4), while $35,000 million will be invested beyond the stage of rentier parasitism must be distinguished: abroad (categories 2 and 4), the rest (of the type of the old Egyptian pashas) •investments in liquid values (stocks most probably being hoarded. and are beginning to behave as typical and bonds) The investment programs already representatives of finance capital. • nonliquid investments planned by the oil-producing countries The case of the Iranian bourgeoisie, •buying of shares in industrial, fi for coming years are extremely extensive. which henceforth will be represented in the nancial, commercial, or transport Saudi Arabia has developed a five-year administrative council of the Krupp trust, companies and the creation of new plan whose budget is about $60,000 mil is in no way an isolated example. In the firms of this type with participation lion (at the current value); Algeria has field of real estate, the Kuwait Investment in the management. a four-year plan for 1974-77 calling for Company, founded in 1961, has bought Of these five forms of utilization of $22,000 million of investments. Kuwait the island of Kiawah in the United States, "petrodollars," only the first has a defla plans to invest more than $4,000 mil where it intends to create a big tourist tionary effect on the economy of the impe lion in the 1974-75 fiscal year alone. It center. It has taken a predominant share rialist countries and may therefore be con can thus be predicted that the cumulative of a redevelopment project in the center sidered a supplementary, although ex balance-of-payments deficits of the impe of the city of Atlanta, Georgia, also in the tremely marginal, factor in the economic rialist countries arising from the high oil United States. It has launched a gigantic recession now under way. To speak, as do prices, all other things being equal, will public offer (a total of $260 million) for certain politicians in imperialist countries, diminish considerably in coming years the St. Martin's Property Corporation in of "sixty thousand million dollars with because of the increase in the supplies London. It has also acquired control of drawn from the Western economy"because of equipment, patents, and technical as two maritime companies, one linking of the balance-of-payments deficits of some sistance they will send to the oil-producing Cyprus and Britain, the other linking imperialist countries is to forget that the countries. This is not true of the balance- England to Ireland. majority of this $60,000 million remains of-payments deficits of the semicolonial In the Arab countries themselves, Arab

November 4, 1974 finance capital, associated with big impe The last-mentioned outfit is feverishly occupied Arab territories. For the most rialist monopolies (with the Arabs often working at creating financial and indus paranoid representatives of this version holding financial and political control), trial enterprises in the Middle East and of things, even the Watergate affair and is engaged in a whole series of major Africa. It has created investment societies the accession of Nelson Rockefeller to the industrial projects. The Saudi Arabian in Egypt, the Sudan, and Senegal. It has post of vice-president of the United States company Petromin, together with the were part of a vast conspiracy of the oil Marcona international consortium (in trusts. cluding American, Japanese, and West It is incontestable that these trusts have German groups), is building a $500 made fat profits from the oil price in million metallurgical factory in the creases decided on by the governments Jubail region of Arabia. The Arab Mari of the cartel of oil exporters. It should time Petroleum Transport Company owns be stressed that this includes not only four oil tankers with a total value of American trusts, but European ones as $240 million. The emirate of Abu Dhabi well. Royal Dutch Shell and British Petro mmj is launching a $300 million project to leum, for example. There is no reason build a liquefied-gas factory on Das is to deny that there is a certain confluence land in association with an American and of interest between the Arab and Iranian a Japanese group. Saudi Arabia is build finance capital (and governments) on the ing a $100 million nitro-grain factory one hand and the imperialist oil trusts with the German trust Hoechst; it is build on the other. ing a $300 million methanol gas factory But it is one thing to affirm that there with the Houston Natural Gas Company, is a certain confluence of interest between and a petrochemical complex in Jubail two separate and autonomous groups of with the Japanese Mitsubishi trust. Dow capitalist proprietors and quite another Chemical is associated with Iranian thing to affirm that there is an identity capital in building a $500 million petro of interests between them or that one group chemical factory in Iran. AFranco-Leban is clearly subordinate to the other. It is ese group around J. J. Carnaiid and sufficient to examine the development of Forges de Basse-Indre are associated with the "oil crisis" during past months to see a private Saudi group in manufacturing that the thesis of an identity of interest metal containers (59 percent of the capital Ne-w York Times between the Arab and Iranian owning is Saudi). And last week* the news came classes and the imperialist oil trusts is through that the shah of Iran was instru THE SHAH: Loaded with petrodollars. untenable. mental in bailing out the bonds of Grum- During the last meeting of the OPEC man Aviation in the United States, which (Organization of Petroleum Exporting participated in launching enterprises in is manufacturing the Phantom fighters. Countries), it was decided not to change Egypt (cement), Uganda (a tannery), the the sales price of oil, but only to increase Veritable banks and investment com Sudan (a transport company), Senegal panies (in which Arab or Iranian finance the charges and taxes payable by the and Nigeria (a real estate firm). trusts. The exporting countries warned capital is generally dominant) have been The balance sheet is clear; We are deal the Western consumers that any new in created in association with the greatest ing here with the activity of enterprising fi crease in the consumer price would be names in imperialist finance capital in nance capital and not with a parasitic the result not of an arbitrary decision order to finance industrial and other proj rentier capital. The best table of the con of the Arab and Iranian governments ects. Some examples are; the Union des nections of Arab and Iranian finance cap but of the refusal of the trusts to pay Banques Arabes et Francaises (Credit ital was published in the September 26, for the taxes by reducing their super Lyonnais); the Banque Arabe et Interna 1974, issue of the French employers profits. tionale d'Investissements (with a con magazine Entreprise. sortium of thirteen European banks); the More important than that decision, Compagnie Arabe et Internationale d' Just Stooges for the Oil Trusts? which nevertheless had a symbolic value, Investissements; the Middle East Interna is the fact that the governments of the tional Fund; the Arab Bank of Jordan; Two objections have generally been ad Arab countries are now transferring the El Ahli Bank of Kuwait; the Banque vanced to our thesis that a new auton ownership of the oil wells—to their own d'Investissements et de Financement INFI omous Arab and Iranian finance capital benefit and at the expense of the imperialist (the Audi Lebanese bank, plus private has emerged. trusts. Exactly how the nationalization of Arab stockholders, plus the Hambros According to the first group of critics, Aramco corresponds to the "interests" of Bank of London, plus Namura Securities the Arab and Iranian governments and the Rockefeller group is a mystery that of Tokyo, plus the Banques Populaires businessmen are nothing but stooges for our critics have yet to shed light on. of France); the Compagnie Financiere the oil companies, particularly of the A variant of this objection consists in Arabe (54 percent Arab shares and 46 Rockefeller group (Exxon, formerly stressing the exclusively or principally percent divided among the Bank of Esso). A number of factors have been political nature of the increase in the price Tokyo, Manufacturer's Hanover Trust, variously cited in support of this objec of oil. According to this view, the aim of and the Banque de I'Union Europeenne); tion; the enormous superprofits raked in the Arab governments is not to accumulate the Kuwait Investment Company; and the by these trusts since the October War; capital, but to oblige the imperialist gov Kuwait Foreign Trading Contracting and the fact that a not negligible part of the ernments to abandon their one-sided sup Investment Company. petrodollars are deposited in the Rocke port to Israel in the Arab-Israeli conflict. feller-controlled Chase Manhattan Bank; That the Arab governments are seeking the sensational reentry of the Rockefeller to use their new economic and financial ♦Grumman said October 3 that it is to group into the Egyptian market; the pol power to modify the political and mili receive up to $200 million over the next icy of Kissinger (a former adviser, very tary relationship of forces in the Middle four years from a group of U.S. banks well paid, of Rockefelier) obligating Israel East in no way contradicts the thesis of and Bank Melli Iran. — IP to gradually withdraw from some of the the constitution of a new Arab and Iran-

Intercontinental Press ian finance capital. It would remain to be was divided 90% for the oil trusts and tion of the large-scale means of produc expiained how the bourgeois governments 10% for the local owning classes. Later, tion. The Soviet and Chinese bureaucrats of Iran, Nigeria, and Venezuela—all of the proportion moved to 75%-25%, then endow themseives with considerable which are taking part in the policy of to 67%-33%, then to 50%-50%. It has material advantages in consumer goods. raising oil prices — happened to have ac now been turned around to 20%-80%, But they are unable to accumulate private quired an identical primordial political if one considers only the price of the oil capital in the manner of a Trujiilo, a interest, an expianation that is that much exported by the producing countries. Houphouet-Boigny, an emir of Kuwait, more difficult to come up with when ac Taking account of all the profits made by a president of the Philippines, or even a count is taken of the manifest antagonism the trusts in transport, refining, distribu simple, corrupt Hong Kong police chief, between the regime of the shah of Iran tion, and so forth, the division is stiil who has just been accused of having ac- and that of the Iraqi Baathists, an an not very far from 40% -60% . cumuiated the equivalent of one million tagonism that far and away transcends American dollars in the space of a few the largely nonexistent sympathy of the years in the form of bribes paid by gang shah for the Palestinian cause, not to Revenge of the Third World? sters. mention his sympathy for Arab nation The assertion that the "Arab masses" The second objection to our thesis of alism, which is nii. as a whole will benefit from the oil price the emergence of an autonomous Arab It is obvious that what unites all these increase is true only in the exceptionai and Iranian finance capital comes from owning classes is not a common political and marginal cases of very sparsely popu a diametrically opposite direction from interest or project, but the possibility at lated countries like Kuwait. The per capita the first. It affirms that it is not a ques a given moment in the history of interna income in Iraq, which is a large oil ex tion of a re-division of profits among tional capitalism in decline of profiting porter, presently stands at about $370 possessing classes, but rather of a gen from a major redistribution of the sur per year. In Egypt it is $220. In spite eral revenge by the "Third World," a coun plus value extracted on a world scale of all the projects of "Arab solidarity," in terattack of the "poor countries" against from the proletariat and semiproletariat. spite of the Kuwait Fund for Arab Eco the "rich countries." There are countries, This redistribution is to take place at the nomic Development, in spite of the Arab this thesis runs, who have based the whoie expense of the imperialist bourgeoisie and Bank for Economic and Social Develop of their "prosperity" on "cheap energy." to the profit of the bourgeoisie of certain ment, the Arab Investment Company, and This era has now been turned around. semicolonial countries. the Saudi Arabia Development Fund — The peoples of the "Third World" are now which taken together command several Following the second world war, impe going to improve their living standards thousand million dollars — these figures at the expense of the rich peoples. Further rialism generally saved its domination will not increase substantially in coming of the countries of Asia, Africa, and Latin more, is it not true that most of the petro years. America (with the exception of China, dollars are held by state or public institu The notion of "Arab solidarity" is scarce North Korea, , and Cuba) tions? How can one talk of "finance cap- ly appropriate as far as distribution of by transferring political power to the lo itai" when one is dealing with public prop investment of surplus value is concerned. cal ruling classes, transforming its direct erty? Won't the income in dollars benefit In this regard, let us cite the British daily rule into indirect rule, and elevating the ali the inhabitants of the exporting The Guardian of October 9, 1974; "The colonial bourgeoisie to the rank of junior countries? fact is that immense question marks hang partner in its exploitative enterprise. But Let us state right off the bat that the over the security and profitability of large- it succeeded in carrying out this trans ciaim that the Arab and Iranian banks scale investment in the Third World. And and investment companies are all or near formation without any major transfer of in this respect, the Gulf oil rulers or surplus value, of profits. Now the colo ly all public institutions is vastly exag the shah of Iran operates on as faultless nial bourgeoisie is cashing in on twenty- gerated. The Kuwait Foreign Trading a capitalist basis as any corporation or five years of colonial revolution, present Contracting and Investment Companyhas bank in London or New York." ing its bill — and a spicy bill it is! It is 25% of its stock in private hands. In the If that's where "Arab solidarity" stands, demanding a major part of the surplus Kuwait Investment Company, the private even more of the same goes for "solidar value extracted from the producers of the shares account for as much as 50%. In ity of the peoples of the Third World." semicolonial countries. In the oil-export most of the joint banking ventures referred Of an expected net oil income for 1974 ing countries, it has done this, at least to above, the private stockholders are of $75,000 million, the oil-exporting temporarily, by taking advantage of an not all foreigners; some are Arabs. Their countries will accord only about $3,000 eminently favorable conjuncture. share of the stock approaches or surpasses million to the semicolonial non-oil-export To get an idea of the enormous haul 50%. ing countries in the form of aid. That that is involved here, one must take ac Next, let us recall that in the semi- is but a fraction of the additional expenses count of the fact that the average cost colonial countries the separation between that will be imposed on these countries of extracting one barrel of oil in the Mid "public" and "private" is often largely ficti by the rise in oil prices. dle East does not exceed 10 to 12 U. S. tious, just as it was during the era of cents. Two years ago, the oil companies primitive accumulation of capitai in Eu To be sure, the investment of a part were asking $2 to $3 for that barrel! rope during the sixteenth, seventeenth, and of the growing income of petrodollars Today, they are selling it for $11.65 (to eighteenth centuries. The sheikhs, emirs, in some Arab countries and Iran will ac which, obviously, must be added the prof and kings treat the public budget as their celerate the economic development of these its they make in transportation, refining, own private domain. Corruption, theft, countries. They will thus end up having wholesale reselling, etc.). But of that and extortion are the classic sources of an infrastructure, inciuding an infrastruc $11.65, the amount of surplus valuegoing private accumulation of capital by the ture for heavy industry, which will favor to the owning classes of the exporting high dignitaries and functionaries of ail their industrialization. That, after all, is countries was $9.23 before October 1, these countries. what capital, finance capital included, ac 1974, and has been $9.74 since that date. And that, we might say in passing, complished in other countries, in other Before October 10, 1974, $2.42 remained is the qualitative difference, which reveals epochs, and under other circumstances. in the hands of the oil companies ($1.99 a difference in class structure, between But here it is a matter of a capitalist since that date). That still represents more these countries and the bureaucratized development, which in no way will guar than ten times the cost of extraction! workers states, despite the apparent simi antee a rapid, not to mention automatic, Once upon a time, the surplus value larity in the matter of the nationaiiza- rise in the iiving standards of the masses November 4, 1974 (except, we repeat, in half-empty countries It also means that the new finance capital will stimulate the development of capital like Kuwait and Libya). (like Russian finance capital before 1917) ism, of capitalist industry, of capitalist Capital investments will be made on a has no interest in a real agrarian revolu exploitation, of the capitalist decomposi priority basis in sectors with a very high tion, which would deprive it of an impor tion of the ancestral village. The develop organic composition of capital, sectors tant fraction of its holdings. But without ment of capitalism is inevitably producing that employ a small labor force (petro such an agrarian revolution, no decisive the development of class struggle between chemicals, organic chemicals, steel). The break with underdevelopment is possible. Iranian and Arab capital on the one hand ravages wreaked on the peasantry and The appearance of an autonomous Arab and the Iranian and Arab workers on the artisans by inflation and the extension other, just as it did in Russia at the end of the money economy threaten to elimin of the nineteenth century. The more this ate many more jobs than the new, ultra class struggle develops, the more the modern industry will create. Endemic un autonomy of Arab financial capital will employment and underemployment will run up against a political, social, and continue to rack Iran, Egypt, Algeria, military limit: its dependence on imperial Iraq, and Syria, not to mention the even ist support in holding back the threaten less developed Arab countries. Under the ing social revolution. pressure of this unemployment and the In the Western press, much emphasis general consequences of a social struc has been placed on the terrible political ture dominated by the accumulation of risks of an imperialist military inter capital (including, more and more, of vention in the Middle East aimed at re private capital), the gap between rich and establishing imperialist control of the oil poor, capital and labor, will widen rather wells; a new rise of Arab nationalism, the than disappear. The Brazilian model of emergence of new political leaderships growth is there to confirm this. Thus, it is even more strongly anti-imperialist than not a question of a "victory of the poor the Nasserists and Baathists of the past, countries over the rich countries," but very a considerable increase in the influence clearly a redistribution of world surplus of the Soviet bureaucracy in the Middle value among different groups of owning East, etc. classes, even if some of the inhabitants and Iranian finance capital—like the em This is all incontestable. But the other of the countries involved may obtain a ergence of an autonomous Brazilian fi side of the coin is often forgotten: the risks few crumbs left over from this rich ban nance capital—marks the beginning of a courted by tbe Arab owning classes in quet. process of change, and not its end. Should the event of a new rise of a mass move the imperialist powers unleash a military ment that is not only anti-imperialist and aggression against the Arab countries to Law of Uneven and antifeudalist, but more and more clearly recover control of oil resources, it would anticapitalist. Combined Development clearly not be an interimperialist conflict in which the world proletariat should not If Sadat has eliminated the Soviet pres For this same reason, it would be pre take sides. On the contrary, it would be ence in Egypt and if the Arab bourgeoisie mature (to say the least) to conclude from an imperialist attempt to maintain and today is trying to eliminate this presence the emergence of a new autonomous Arab reinforce the dependent semicolonial status throughout the Middle East, it is not and Iranian finance capital that the social of the Arab countries threatened with col simply a matter of a diplomatic maneuver character of the Arab countries and Iran lapse. It would be a war of plunder by the offered in exchange for a softening of the has changed, that they have been trans imperialists and their agents to get their pro-Israeli policy of American imperial formed from semicolonial countries into hands on the oil of others. On the part ism. It is also because the Arab ruling new imperialist powers. Financial owner of the Arab countries, it would be a legi class, progressively transforming itself ship of the principal industrial companies timate war against foreign plunderers for into a bourgeois class, fears all anticapital of a country is only one of the criteria defense of the right and possibility of free ist forces. That is why a civil war raged determining its character as a semicolonial dom and independence. Under thesecondi- for years in Yemen, why it is still raging or imperialist country. The social struc tions, the sympathy and support of the in Dhofar, and why it could break out ture, the degree of underdevelopment, the world proletariat would be on the side in the future in Jordan and even in Saudi weight of precapitalist survivals in its rela of the Arab countries. Arabia or Iran. The Arab and Iranian tions of production, its place in the world But approaching the problem from a ruling classes know very well that they market, the nature of its political regime, class point of view, in no way can the con have no other effective source of aid and the nature and composition of its flicts between imperialist control and the against their own exploited masses than ruling class are some of the factors that attempts of the Arab countries to estab that which they can get from the imperial must be combined with the first in deter lish independence, even if under the lead ist powers. mining the character of the country. ership of their owning classes, be given Under these conditions, the blackmail The sections of the Arab and Iranian priority over the conflicts between the that is being used by both sides in the owning classes that embody and direct the Arab masses and their own ruling classes. sordid bargaining over the redistribution new autonomous finance capital of these To keep quiet about these conflicts or to of surplus value is a blackmail that is lim countries are composed neither of manag try to push them to the background under ited by a clear consciousness of common ers nor of engineers, but of proprietors the pretext of "Arab anti-imperialist soli interest, which the international bourgeoi who maintain their grip on the land, darity," not to mention "Third World soli sie can put in danger only by threatening the state, and the ultraparasitic forms darity against the rich countries," would its own very existence. There are times in of rule. This not only means that techno be to pass to the other side of the bar the history of imperialism, and of the logical know-how must be imported from ricades, that is, to support the exploiters bourgeoisie in general, when it is driven the imperialist countries, which demon against the exploited. to risk everything in an attempt to win strates the dependence of these countries Precisely to the extent that petrodollars everything. But it has not been demon and imposes the form of joint ventures stimulate the formation of an autonomous strated that things have already come on the important industrial enterprises. Arab and Iranian finance capital, they to that point, not in Washington, nor

Intercontinental Press in Riadh, and certainly not in Tehran. liances with the colonial bourgeoisie and side with modern financiers, in which the The totality of the transformations that the weakness of the alternative revolution colonial bourgeoisie counts on making are expressed in the emergence of an ary leaderships of the workers and poor the maximum impositions on the impe autonomous Arab and Iranian finance peasants of the colonial and semicolonial rialist trusts while nevertheless maintain capital built essentially through the ac countries allowed the colonial bourgeoi ing their dependence on imperialism. cumulation of petrodollars can best be sie to come forward twenty years later The Arab owning classes have not yet summed up as a new illustration of the law and cash in on the formal political in broken with the Middle Ages at a time of uneven and combined development. dependence that imperialism had earlier when they are nevertheless leaving the After the second world war, the delay been forced to grant so as to avoid the palaces of Beirut and the casinos of the of the socialist revolution permitted a tem worst. Cote d'Azur in favor of industrial work porary new expansion of the productive Suddenly commanding considerable shops and shipyards. Even with expen forces. This occurred under imperialist capital resources in several countries, the ditures of thousands of millions of dollars, domination, but under conditions of the colonial bourgeoisie is accumulating and they are not able to shed this double accentuated decline of the international investing this capital according to the skin, just as they are not able to eliminate capitalist system as a whole, with aggra model it learned from the imperialist coun underdevelopment from their society. That vated conflicts and more and more ex tries. But it is doing so within a socio requires a social revolution. And neither plosive contradictions, not only between economic context that has not been fun the shah of Iran, nor the king of Saudi Capital and Labor, but also between the damentally modified, a context that com Arabia, nor the emir of Bahrein, nor the imperialist metropolises and the colonies. bines the Middle Ages (or earlier!) with Egyptian bourgeoisie can preside over The systematic policy of the Soviet contemporary technology, in which slaves that social revolution. Instead, they will and Chinese bureaucracies in seeking al who are not yet emancipated live side by be overthrown by it. □

Sees Possibility of Deadly Chain Reaction

Threat of World Slump Alarms 'Business Week' By Dick Fidler

"I do not think the United States sons believed that the economic situa in many major Western countries, the is in a recession," Gerald Ford told tion would worsen in the next six editors continued, pose "a horrendous an October 9 news conference. The months and that an increasing num danger in a world where multinational next day, Federal Reserve Board ber—now 51 per cent—predicted that business and multinational financial Chairman Arthur Burns, appearing the economy was heading toward a institutions have bound nations more before a congressional committee, con depression such as that of the nine- tightly together than ever before. tradicted the president. There is a re teen-thirties," the New York Times re Serious trouble in one nation could cession, the top central banker said, ported. infect all nations in the twinkling of adding that it is "a most unusual re Only 15 percent of those polled an eye It has been three months since cession—a recession for which there thought the economic situation would the failure of Germany's Bankhaus is no precedent in history." improve in the next six months. I. D. Herstatt—a tiny bank compared Whatever its specific historical fea The public's view that the Ford ad with the titans of international fi tures, statistics released October 17 ministration is not telling the truth nance—and the foreign exchange by the Commerce Department indicate about the economy is sustained by a markets still have not fully recovered that the current economic situation in growing body of hard evidence. from the blow." the United States more than meets Symptomatic of the widespread con The root of world economic insta the common definition of "recession" — cern was a special feature on "The bility, according to Business Week, that is, two consecutive quarters of Debt Economy" published in the Octo is the great mass of indebtedness piled decline in real gross national product. ber 12 issue of Business Week, one up by corporations and governments During the July-September period, the of the more sober voices in U. S. busi during the last three decades of post U. S. GNP dropped by 2.9 percent, ness and financial circles. war expansion. This debt has over the department reported. It was the In Business Week's view, "the eco extended banks, stretched corporate third consecutive quarter to show a nomic outlook is dark both here and liquidity to the limits, and confronted loss in the country's total output. abroad. Not one Western industrial capitalist governments with an unwel Secretary of Commerce Frederick power, the U. S. included, has been come choice between following policies Dent insisted there is ho recession. He able to bring inflation under control, of restraint that aggravate the li described the state of the economy while efforts to control it have brought quidity squeeze without slowing infla as "a spasm" or "sideways waffling." the world closer to a major economic tion, and less restrictive policies that A majority of Americans take a slump than at any time since the simply postpone more drastic re gloomier view. A Gallup poll released 1930s." strictions. October 16 "showed that 7 in 10 per Large balance-of-payments deficits Finally, "the most dangerous threaf

November 4, 1974 to the U. S. economy, the editors view, an entire phase of almost un tioned whether central banks and gov wrote, is the international prospect — interrupted postwar expansion is at ernments would be able to cope with "the specter of a chain reaction of de an end. Perhaps more significant is the the effects of chain-reaction defaults, faults by borrowers and failures by revealed failure of traditional govern once the process got under way. ". . . lenders, thrusting the world into deep ment devices to avoid or cushion the the dangers are greater than in the depression." impact of recession. In fact, the Key- 1930s. . . . Perhaps the greatest risk Federal Reserve Board Chairman nesian "pump-priming" methods are is in the billions lent to borrowers Burns described the current recession themsdves a major source of the in whose ability to repay has been com as "unusual" because, in his words, it flationary spiral. promised by the high price of oil." is accompanied by "galloping infla Business Week's Markets and Invest The rise in oil prices a year ago tion" and "booming" capital invest ment Editor John Carson-Parker only aggravated an inflationary spiral ment "I have been a student of the spdled out the implications: ". . . the that was already out of control. The business cycle for a long time," he U.S. already carries a burden of debt source of that inflationary pressure told the congressional committee, "and so heavy that it is doubtful that all is to be found not in the avarice of I know of no other precedent for it of it can be repaid and almost certain Arab sheikhs, as Washington officials in history." that not enough more can be bor are suggesting today, but in the ten But Business Week's editors traced rowed to keep the economy growing dency toward secular inflation that is the roots of the recessionary trend to as it has since World War II. . . . inherent in monopoly capitalism. This the inflationary pattern of capital in It is inevitable that the U. S. economy is especially evident in the accelerating vestment itself, as manifested in the wiU grow more slowly than it has." expansion of credit. colossal U. S. public and private debt. In his view, "Even if the U. S. is Here is how Business PFeefc described Here is how they described it: not overborrowed now —a most de the process: batable point—it cannot continue to "Between 1945 and 1970 the world "The U. S. economy stands atop a pile up debt as it has in the postwar enjoyed the longest boom on record — mountain of debt $2.5-trillion [thou era because the sort of government fueled in large part by borrowed sand thousand million] high—a policies that would permit that to hap money. Business borrowed at a pro mountain built of all the cars and pen would simply feed inflation." digious rate to make the stuff, con houses, all the factories and machines Interviews with leading bankers and sumers borrowed at a prodigious rate that have made this the biggest, rich economists, according to Business to buy it, governments borrowed at a est economy in the history of the Week, have disclosed a fairly wide prodigious rate to support armies and world. The next biggest capitalist spread consensus among U. S. cap buUd roads and schools. The $2.5- economy is that of Japan, but it would italists that the only answer to run trillion debt load of the U. S. is just take a sum more than one-third the away inflation is recession, and the a part of a total world debt load that could top $10-trillion." gross national product of Japan just sooner the better. In fact, in their view to pay this year's interest on the U. S. it is not possible to choose between This debt has grown at an ever- debt. inflation and recession. increasing rate. In 1946, the total "The U. S. is the Debt Economy with "If inflation is not brought under U. S. debt, public and private, was out peer. It has the biggest lenders, control," said Robert W. Stone, execu $400,000 million, and nearly 60 per the biggest borrowers, the most so tive vice-president of New York's cent of that was U. S. Treasury debt. phisticated financial system. The num Irving Trust Company, "then the con By 1960, the total U. S. debt had bers are so vast that they simply ditions are that sooner or later we doubled. By 1970, it had doubled numb the mind: $l-trillion in corpo will have a recession of substantial again."The key economic indicators — rate debt, $600-billion [milliard] in depth and length. The question is what gross national product, personal in mortgage debt, $500-billion in U. S. kind of economic setback to expect. come, corporate profits, and the like— government debt, $200-billion in state Many of us would rather have a set have all grown by 500% or so since and local government debt, $200-bil- back now. It will be more pronounced W orld W ar H," according to Business lion in consumer debt. To fuel nearly than two or three years ago but less Week. "The key debt indicators have three decades of postwar economic pronounced than two or three years all grown by three and four times boom at home and export it abroad, from now." that amount, and the sharpest gains this nation has borrowed an average But many economists and business have come since 1960. net $200-million a day, each and executives interviewed by Business "Corporations have tripled their debt every day, since the close of World Week agreed that the recession now in the past 15 years. Treasury debt, War II." developing will be the worst in several which hardly grew at aU in the late The magazine posed what it called decades. A University of California 1940s and 1950s, has jumped by "two critically important questions" economist warned that "because of the $180-billion since 1960. Installment about the U. S. economy: current financial structure, the system debt, mortgage debt, and state and "• Can all the debt now outstand cannot withstand a recession as well local government debt have all ing be paid off or refinanced as it as it could in the past." climbed by 200% or more since 1960, comes due? The vice-president of a Chicago and the debts of federal agencies have "• Can the economy add enough savings bank said: "A major down climbed by more than 1,000%." new debt to keep growing at any turn in business activity would cause Consumer debt has increased by thing dose to the rate of the postwar a much sharper increase in liquida more than 50 percent since 1970. Yet era?" tions and bankruptcies than at any working people, whose real wages are For Business Week, the answers to time in the past 30 years." declining under the blows of double- both questions are negative. In its And Business Week's editors ques digit inflation in retail prices, are in-

Intercontinental Press creasingly worried about the danger of recession. A recent poll by the Uni jNUSlMSfjiHT versity of Michigan's Survey Research Center found that consumer confidence is at the lowest point in the 28-year history of the survey. The survey's directors said that "experience suggests that the present combination of very de^ consumer pessimism and decline in real incomes might make for a severe recession." Throughout the economy, borrow ing has bred further inflation, and in flation has spurred further borrowing. Money borrowed on the stock markets has gone increasingly to finance "emerging industries" like lessors, fran chisers, and conglomerates — where rapid technological innovations ac celerate turnover of fixed assets, there by increasing the need for short-term financing. Loans have increased twice as fast as bank deposits. Banks have borrowed increasingly on internation "For long-term investments, consult our colleague." al money markets. Interest rates have shot upward, and further loans at higher interest rates are often required Moreover, Ford's speech to Con the mass of the population. to pay off outstanding loans. gress October 8 included such infla The underlying question in the "And then," as Business Week's mar tionary proposals as lifting price con minds of bourgeois economists and kets and investment editor put it, "sud trols on natural gas and setting oil politicians alike is one they still hesi denly, it aU began coming unstuck." import quotas — both of which would tate to express openly: Can they get In his opinion, the reasons "are not give the oil monopolists greater lati away with it? totally dear even today — except that tude to jack up prices—and increasing Among the contributors to Business no boom goes on forever." the investment tax credit from the cur Week's special issue, Carson-Parker However, Marxists, who have rent 7 percent to 10 percent. came closest to saying it outright. analyzed and understood the internal Summing up the collective wisdom ". . . it will be a hard pill for many laws governing capital accumulation, of the capitalist economists, John Americans to swaUow — the idea of were able to predict this inevitable Carson-Parker, an editor of Business doing with less so that big business crisis long ago. Week, admitted that "if there is a can have more. It will be particularly How to stem the rise in world infla remedy for today's inflation except hard to swallow because it is quite tion, bring it under control, and pro recession, it has not been found. . . ." obvious that if big business and big duce an adequate supply of goods banks are the most visible victims of at low cost for everyone? A key point The whole thrust of Ford's eco what ails the Debt Economy, they are of attack would be to diminate waste nomic program is protectionist and also in large measure the cause ful expenditures—in the first place, recessionary. of it. . . . the enormous military budgets of But even a major recession can in "Nothing that this nation, or any every imperialist country which are a no way resolve the fundamental con other nation, has done in modern major source of inflation — and to tradictions of the capitalist economy. economic history compares in diffi eliminate corporate profiteering. This "The net result of the crisis in the Debt culty with the selling job that must would mean nationalizing the corpo Economy," Business Week's editors now be done to make people accept rations, subjecting them to the control confessed, "will be to thin out the ranks the new reality. And there are grave of society as a whole, and converting of those who can borrow and those doubts whether the job can be done the arms industry to socially useful who can lend. All the antitrust laws at all." □ production. in the world will not prevent a stUl greater concentration of the wealth in Wisconsin Farmers Kill Calves Such measures are, of course, fur fewer hands because to the extent that thest from the capitalists' intentions. there is a crisis in the Debt Economy, Members of the National Farmers Or In fact, the White House is planning only the biggest and fittest will ganization slaughtered 658 calves and fifteen pigs on October 15 in Curtiss, Wis to increase the official war budget by survive." $8,000 million in the next fiscal year, In other words, the only prospect consin. The action was in protest of the lower prices for farm products and the to a record $92,000 million. And the the capitalists hold out is one of fur skyrocketing cost of feed. Defense Department claims that this ther concentration and monopoly, and The Wisconsin Department of Agricul 9 percent increase would be insuffi with it, in the long run, the assurance ture sent a representative to the protest cient to offset the impact of inflation of greater inflation and a lowering of to ensure proper compliance with regula on military programs. real wages and living standards for tions regarding disposal of the carcasses. November 4, 1974 "'T y&::'.

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Castro Forecasts Change to do with Portugal." million on police forces, $62 million on in Washington's Cuba Policy The other official said that the U. S. health, and $73 million on education. purpose in the negotiations "is not simply The 1974-75 expenditures will come to Fidel Castro has told interviewers that an economic swap for military assets. . . . $200 million on police, $115 million for he sees "positive" hope for improved U. S. It is a desire for closer political relations health, and $74 million for education. Cuban relations, because Ford is not per- as the Spanish enter a period of political sonaliy "involved with the Cuban counter stress." revolutionary elements." Nixon, Castro Washington has given the Franco dic said, was the "principal obstacle to any Nixon's Servants Dropped tatorship about $1,000 million in military change in the [U.S.] policy towards Cu From U.S. Payroll and economic assistance since 1970. ba." It was announced October 18 that the The Cuban premier's interview with two servants who left the White House Au CBS correspondent Dan Rather and gust 9 to accompany former President Frank M ankiewicz, a former aide to 1972 Timor Demonstration Opposes Nixon to his luxury villa in San Clemen- Democratic party presidential candidate Annexation by Indonesia te, California, were taken off the federal George McGovern, was broadcast on the Portugal and Indonesia have agreed to payroll October 5. The move came after CBS television network October 22. hold talks over the future of the Portu disclosures that they were still being paid "From the Cuban point of view," Castro guese colony of Timor. Timor has been with government funds after Nixon's res said, "we see Ford with a certain hope under Portuguese rule for the last 500 ignation from office. in the sense that he may after all adopt years, and self-determination could be a different policy toward Cuba, and that thwarted by a deal between the Portuguese at least he does not have the personal in government and the regime in Jakarta, Officials Said to Be Hoarding volvement that Nixon had in this regard." which is interested in annexing the terri Relief Supplies Sent to Honduras Castro posed only one condition to be tory to Indonesia. Dr. Edward Austin, a U. S. physician ginning discussions between Havana and The recently formed Revolutionary who worked in Honduras in the flood- Washington — that the White House lift its Front of Independent East Timor (Fre relief effort, has charged that Honduran economic blockade of Cuba. tilin) is opposed to any such plan. Freti officials have been hoarding relief "Once the blockade stops," he said, "then lin organized a demonstration of 5,000 supplies. we can start discussing all the other prob on September 20. It is demanding recog 'We saw tons of food delivered to the lems." nition as the only legitimate representative local commandant but never saw the peo of the Timorese peopie in negotiations ple getting anything more than beans or with Portugal for immediate independence. rice," Austin said. Miners Strike in Rhodesia Coionei Eduardo Andino, the Honduran Five thousand workers at the coal fields relief coordinator, denied the charge. On in Wankie, Rhodesia, struck for higher India Doubles Police Budget October 17, however, Honduran Foreign Minister Cesar A. Batres resigned follow pay on October 18. According to Agence The Public Accounts Committee of the France-Presse, the action brought work to Indian parliament has released a report ing continuing charges that the govern a standstill. disclosing that government allocations for ment had mishandled relief efforts. police and internal security forces have doubled in the last five years. Most of the money is apparently being Record Unemployment in France U.S., Spain to Begin Talks on Bases used for the expansion of three paramili About 534,000 French workers are now Washington will begin formal negotia tary forces. out of work, according to an October 21 tions with Madrid on November 4 for re One is the 54,000-member Central Re announcement by the French Ministry of newal of the agreement granting the Penta serve Police. The budget for the CRP has Labor. This is the first time since the end gon use of military bases in Spain. tripled in the last five years. The size of of the second world war that the official The current agreement entitles Madrid to the force has increased from sixteen bat figure for unempioyment has topped military and economic aid in exchange for talions to sixty battalions since 1964. 500,000. use of four bases, including the naval The expenditure for the Border Security facility at Rota, near Cadiz, which is used Force has more than doubled in the iast for Polaris submarines. five years. This body was originally set Two "informed officieds" who briefed up in the 1960s after the border clashes West German CIA Washington reporters described the po with China. Since that time its scope of The West German intelligence service litical objectives from the White House operations has widened. has been charged with spying on lead point of view: The third group is the Central Industrial ers of the Bonn government. ". . . what we are trying to do," one Security Force. Set up in 1969 to protect Horst Ehmke, a former cabinet mem said, "is to insure that our ties with Ma government property, the CISF has ber of the Brandt government, disclosed drid can survive changes in their gov tripled in size during the last four years. that the agency has "illegal dossiers" on ernment much as we have been trying In 1968-69, the government spent $100 fifty-four persons, including two former

Intercontinental Press presidents and two former chancellors. shoot President Harry Truman in 1950; in the 1966 trial of Peruvian Trotskyist The agency was formed by the U. S. and Lolita Lebron, Rafael Cancel Miran Hugo Blanco, who was jailed on charges Central Intelligence Agency during the da, Irving Flores, and Andres Figueroa stemming from his leadership of peasant postwar occupation. Its first head was Cordero, who were involved in a shoot struggles. General Reinhard Gehlen—the chief of ing incident in the U. S. House of Repre Caller's arrest has been protested by the Nazi army intelligence on the Russian sentatives in 1954, in which five congress Peruvian press, and by trade-union and front. men were wounded. peasant organizations. Ehmke also disclosed that the agency The bombings occurred just one day has engaged in weapons sales and pay before a mass meeting of 20,000 persons offs to journalists to plant propaganda in New York City's Madison Square Gar in the press. den which was called in support of Puerto ETA Soys Modrld Bombing Rico's independence struggle and the cam Wos o Police Job paign for the release of the five political Euzkadi ta Azkatasuna(ETA—Basque Soviet Industrial Output Increasing prisoners. Nation and Freedom) has denied respon The Soviet Union has announced that sibility for the September 13 bombing of its industrial growth was 8.2 percent dur the Bar Rolando in Madrid. In a docu ing the first nine months of 1974. Labor ment dated October 17 and signed by Inflotlon Forces Cutbocks ETA's central leadership, the group attrib productivity was also up 6.7 percent over In U.S. Consumer Spending the same period of last year. uted the action to "ultrafascist grouplets Close to half the families in the United Official figures showed that the produc closely linked to certain police and politi States have been forced by inflation to tion of grain-harvesting equipment was cal circles of the Spanish state." give up some "nonessential" items they down 7 percent from last year. Produc The explosion killed twelve persons and used to purchase, according to a new tion of automobiles, however, was up by injured about seventy. monthly poll of"consumer sentiment." 23 percent over 1973, with 829,000 cars Twenty-five percent have had to sacri being produced between January and Oc fice many "luxuries." tober. The poll of 1,400 households, conducted U.S. Auto Mokers Cut Bocklnvestment, in September, was sponsored by Citicorp Loy Off Workers, As Soles Decline and its major subsidiary, the First Na Faced with a sharp drop in sales and tional City Bank. Police Attribute New York Bombings profits on new 1975 models, the major More than hcilf the families polled — U. S. automobile manufacturers are lay to Puerto Rlcon Notionalists 52%—said they now rely on a budget. ing off thousands of workers and cut Five bombs exploded in New York City And 80% of these said they experienced ting back capital spending programs. at about 3 a.m. October 26, shattering some difficulty living within their budgets. In mid-October — less than one month windows and glass walls of office build The families questioned expressed over into the new model year — domestic new- ings. The targets included the headquar whelming pessimism over the state of the car sales for General Motors, Ford, ters of the Chase Manhattan Bank in the economy compared with a year ago, the Chrysler, and American Motors were Wall Street financial district; the Exxon poll indicated. A full 84% said the econo and Banco de Ponce buildings in Rocke down 28.4 percent from the same period my was worse, 13% thought it was the in 1973. All the companies have begun to feller Center; and the Union Carbide and same, and only 2% felt it had improved. Lever Brothers building on Park Avenue. make sharp downward revisions of sales The New York Times reported that "a forecasts for the coming year. man and a woman with Puerto Rican Chrysler Corporation, whose net income accents" telephoned and directed reporters fell 88 percent in the first nine months to a telephone booth where a statement Unemployment In Western Europe this year, has already cut projected capi signed by the "Fuerzas Armadas de Li- The following are the unemployment fig tal spending in 1975 to about $475 mil beracion Nacional" (FALN —Armed ures reported recently by some capitalist lion from $525 million, and plans a furth Forces of National Liberation) was countries in Western Europe: Sweden, er reduction. Chrysler Chairman Lynn found. The organization claimed that its 2.32%; Denmark, 1.96%; , Townsend estimates that the company will members, whom it described as Puerto 3.98%; the , 3.52%; Britain, cut its manufacturing capacity in domestic Rican nationalists and "guerrilleros," were 3.09%; Ireland, 8.5%; and France, 1.4%. and foreign operations by 300,000 cars responsible for the blasts. and trucks a year in the near future. It A police spokesman said it was a "new may permanently close one of its six as name," but added that "we feel it is affiliat sembly plants in the United States, he ed with Puerto Rican independence groups Louro Caller Jolled In Peru says. in the past that are continuing into the Peruvian lawyer Laura Caller Iberica General Motors, with profits down 94 present." was arrested in Andahuaylas province, percent from a year ago, laid off 6,000 In the statement, the organization department of Apurimac, in a mid-October production workers October 24, bringing claimed responsibility for bombings and roundup of individuals allegedly associat the total number of workers on indefinite attempted bombings last spring, and on ed with Vanguardia Revolucionaria layoff at GM to 36,000. GM, Ford, and September 28 in Newark, New Jersey, (VR—Revolutionary Vanguard, a neo- Chrysler together have laid off 48,000 saying the actions commemorated the Oc Maoist group). production workers and 15,000 white-col tober 30, 1950, uprising in Puerto Rico According to General Pedro Richter Pra- lar workers in recent months. "against yanki colonial domination." The da, Peruvian minister of the interior, VR statement demanded the release of five members had been carrying out "subver Puerto Rican political prisoners by Wash sive" activity in conjunction with the Con- ington and called for the immediate inde federacion de Campesinos del Peru (Pe Outlook on French Economy pendence of Puerto Rico. ruvian Peasant Federation). They are According to a recent poll, only 13 per The political prisoners are Oscar charged with urging peasants to "invade cent of the citizens of France think that Collazo, a Puerto Rican nationalist who haciendas" in the province. economic conditions will improve in that is serving a life sentence for attempting to Caller was one of three defense attorneys country. November 4, 1974 En Que Se Equivoca el PC

Las Peligrosos llusiones en el Ejercito Portugues

Por A. Romero

Lisboa al MFA, como garante armado de la tencia colonial atraviesan por una cri Las maniobras militares que en la democracia y adn como firme aliado sis sin precedentes. Primero fueron los madrugada del 25 de abril pusieron dd pueblo en la lucha contra los mo- golpes de las guerras de liberacidn fin a los casi cincuenta aftos de dicta- nopolios y la explotacidn. Con ma en Africa y, despues de abril, las lu- dura fascistizante en Portugal, estu- lices diferentes, todos atribuyen tam- chas obreras y populares en la metrd- vieron dirigidas por el Movimiento bien al Movimiento el principal meri- poli. Los mecanismos estatales de do- de las Fuerzas Armadas(MFA). Cin- to por la desarticulacidn delgolpe . . . minacidn de clase—incluyendo las co meses despu^s, en la madrugada Avante, d semanario del PGP, re fuerzas armadas —11egaron al borde del 28 de septiembre, nuevamente el produce aprobatoriamente unas de- de la desintegracidn. Movimiento de las Fuerzas Armadas claraciones sin desperdicio; "Esos fas- Ciertamentq el qdrcito no puede per- ordena los despiazamientos de tropas cista^ juzgan que nuestro Ejercito es manecer al margen de los problemas que "iegitiman" las barricadas y pique- igual que cualquier otro. Y no es de la sociedad en que existe, tanto mds tes con que los trabaj adores Portu asi. Nuestros oficiales, nuestros sol- cuando que su base estd formada por gueses derrotaron la intentona reac- dados, hicieron la guerra, saben lo obreros y campesinos quepasancwa- cionaria . que es matar y morir al servicio de tro anos en los cuarteles. Pero sus cua- 6Que es y ddnde apunta este Movi un monstruoso engranaje . . . Queda- dros dirigentes enfocan estos proble miento prodamado por las mds im- ron vacunados contra brutalidades mas y visualizan soluciones a travds portantes organizaciones obreras co- gratuitas. La guerra los aproximd de norm as jerarquizantes e intereses mo el principal sustento de la demo- al pueblo, los volvid contra los ex- politico-profesionales indisolublemen- cratizacidn y transformacidn social? plotadores y los enemigos dd pue te ligados con la existencia del capi iEs realmente "el pueblo en armas", blo. Pero la reaccidn, ademds de cri talism o. como algunos llegan a afirmar? 6 Se minal, es estupida. No entiende que Los arrestos "antifascistas" de los al justifican las llusiones en d deposita- las armas apuntan ahora para otro tos mandos integrados en el MFA — das? lado. " i Son realmente sorprendentes que fueron los conductores militares Vasco Gongalves — Primer Ministro las virtudes educatives adjudicadas a de la represidn sangrienta en Guinea, y lider del Movimiento — acabadede- Una guerra colonial! Mozambique y Angola —sdlo pueden finir que "el MFA [estd] constituido por Sin duda, el ejercito portugues tiene tener, entonces, una explicacidn: fue gente honrada, por oficiales que pu notables particularidades en el mo- ron la reaccidn defensiva de quienes sieron por encima de todo el amor a mento actual, pero resulta imposible percibian mds directamente el peligro la Patria, que procuran ser el motor comprenderlas en su real proyeccidn de un completo colapso del aparato de apoyo al desarrollo democrdtico si no es analizdndolas en base a con- militar, actuando por lo demds con y que son el motor en el seno de las ceptos y experiencias histdricas gene- luz verde de parte del gran capital Fuerzas Armadas"; precisando luego rales. monopolista asfixiado por el apara que "esos militares sab en que forma Basta volver los ojos hacia las ul to burocrdtico de la dictadura de Cae- parte de sus obligaciones colocar por timas decadas de la historia latino- tano. Es esencial no perder eso de vis encima de todo los intereses unitarios americana, para encontrar numerosos ta. de su Patria y bajar banderas en gemplos de ejdrcitos y militares que Pero el MFA es mds que eso. Los presencia de esos intereses." se "agrandan" en tiempos de crisis cuadros militares recibieron la inyec- Despuds agrego: "Nosotros defende- hasta actuar como fuerzas politicas, cidn de numerosos oficiales "mUicia- mos los verdaderos intereses del pue como las reservas mds fuertes—y en nos", provenientes en gran niimero de blo portuguds, que estdn traducidos algunos casos, mds liicidas—-de la la universidad y contaminados por en el programa que elaboramos y pre- burguesia. Con la diferencia—en fa ideas de izquierda, y gran parte de tendemos llevar hasta el fin, y que vor de los rasgos momentdneamente la oficialidad con lazos directos con llevaremos al fin contra todo y contra progresivos de ciertos movimientos la clase media recibia tambidn la evi- todos." militares en paises dependientes —que dencia de la completa pudricidn del Sin mds precisidn— aunque mds en- en Portugal el capitalismo se ha edi- antiguo rdgimen. Fueron estos sec- fdticamente — durante la crisis, la ra ficado sobre la base de la explotacidn tores, los mds dindmicos del qdrcito, dio prod am aba que "se ha reafirmado colonial, que la burguesia "nacional" la levadura imprescindible para la or- el cardcter de vanguardia histdrica del se estructurd con formas fuertemente ganizacidn del MFA como una fuer- MFA." monopdlicas, que las clases dominan- za primero critica y luego abiertamen- El Partido Comunista de Portugal, tes se aprestan a una intervencidn neo- te opositora a la dictadura. el Partido Socialista y hasta forma- colonialista en Africa, aliada al resto En agosto de 1973 surgid el Mo ciones mds radicales, como el Mo delos imperialismos. vimiento de los Capitanes en los acan- vimiento de Izquierda Socialista, ri- Ocurre si, que la sociedad y el mis- tonamientos coloniales, con un pro valizan en d enfasis con que apoyan mo estado capitalista de la ultima po- grama estrictamente "profesional." En

Inferconfinenfal Press enero de 1974 el movimiento ya se sus luchas independientemente de cual- desembocar en la conquista del poder habla extendido a las otras armas y quier compromiso, si los revolucio- por los obreros y en la revolucibn so- habia radicalizado sus objetivos, lue- narios forjan el partido capaz de con- cialista, que garantizard por primera go de chocar con el rechazo guberna- vertir al proletariado en el caudUlo vez la democracia en Portugal. mental de sus proposiciones. En el real de las luchas democrdticas en Tal vez una parte de los compo- Plenario de Cascais iniciaron la pre- cur so, si como parte esencial de esa nentes del MFA podrd participar en paracibn del golpe y lanzaron su pri batalla las masas consolidan y co- esta lucha, y todos los esfuerzos con- mer comunicado politico: mienzan a armar sus propias fuerzas ducentes a ello deben ser realizados: "El gran problema es la guerra", y plantean un program a de verdadera el primer esfuerzo consistg precisa- se debe buscar una "solucibn politica, democratizacibn del gercito (derechos mente, en destruir la peligrosa, la con- no militar" y tambien para Portugal politicos y de organizacion extendi trarrevolucionaria ilusibn, de que el "se debe buscar una solucibn para do s a la tropa, formacion de comites MFA puede dirigir o colaborar or- las instituciones en el cuadro de la de soldados y marineros, etc.), el cur- gdnicamente con el triunfo de la de democracia politica", con lo cual las so permanente de las luchas podrd mocracia en Portugal. □ fuerzas armadas estarian en "condi- ciones para ser instrumento de la Na- ci6n." Luego los acontecimientos se ace- Una Entrevisto Con Nohuel Moreno leraron: publicacibn del libro de Spi- nola; separacibn de este junto con el General Costa Gomes; fracaso de un intento golpista; nuevo comunicado Asesinos de Ultraderecha: en marzo, acusando al regimen de aplicar medidas "terroristas." Despu^s, Nuevo Peligro en Argentina el 25 de abril, el acceso al poder y la confrontacibn siibita no s61o con todos los problemas crbnicos del pais, [El 7 de octubre Intercontinental una pelea descomunal entre los asesi Press entrevistb en Buenos Aires a nos y su familia (esposa, hija y yer- sino tambien con un colosal ascenso de masas que rdpidamente desborda Nahuel Moreno, miembro de la direc- no), quienes trataron de impedir que cion nacional del Partido Socialista los limites del MFA. se lo llevaran. De esta pelea resultb Esto es asi tanto mds porque la dis- de los Trabajadores, sobre la situa- muerto el yerno. cion politica actual de su pais. Esta ciplina en los cuarteles ha continuado Ya en la caUe tuvieron que force- es la transcripcibn de esa entrevista]. relajdndosq particularmente a nivel jear durante quince minutos con Fron de los soldados, y un choque frontal dizi para poder llevarlo. Todos los con las masas podria desmoronarla vecinos del barrio observaron la pe por completo. lea, d trdfico habia sido interrumpi- Anjos y Marvaes, oficiales "mUicia- Pregunta. i Qu6 son las AAA1 do por las AAA. A pesar de todo d nos", fueron detenidos por negarse a escdndalo la policia no se hizo pre- reprimir una huelga, y Spinola acaba Respuesta. Antes que nada quiero sente. de renunciar en protesta por la tole- aclarar que existe una confusibn con Otro hecho: hasta ahora no hay rancia ante las luchas populares: por esa sigla. Segiin algunos peribdicos un solo detenido, procesado o investi- burgueses las AAA significan "Alian- gado de las bandas fascistas, contra ahora, estos son los limites en el ac- cionar del MFA. Accionar confuso, za Anticomunista Argentina", segdn montones de presos de la guerrilla. contradictorio, pero con algunas cons- otros "Alianza Antimperialista Argen Las AAA tienen como objetivo prin tantes: salvar la estructura jerarqui- tina". Sea cual fuere su verdadero cipal en esta etapa sembrar d terror ca del g^rcito, mantener el "orden", nombre, no puede haber dudas sobre en las personalidades que colaboran exigir la colaboracibn de los partidos su filiacion y cardcter politico: es una con la guerrilla, con los Montoneros tipica organizacibn terrorista fascista. obreros sin renunciar a su funcibn y con la oposicibn camporista a la de drbitro inapelable. Sus vinculaciones con un sector del actual direccibn peronista. gobierno y las fuerzas de represibn No deb em OS confundir a las AAA son evidentes. con otras organizaciones terroristas Tal parece ser la "particularidad" Algunos hechos lo demuestran: po- fascistas, como los matones de algu del gdrcito portugues y, ciertamente, cos dias antes del asesinato de Silvio nos sindicatos, con d GNU (Coman- las fuerzas revolucionarias no deben Frondizi por las AAA, el ERP [Ejbrci- do Nacional Universitario) o d C de cerrar los ojos ante ella, ni ante la to Revolucionario del Pueblo] hizo un O (Comando de Organizacibn). Liga- posibilidad de que sectores encuadra- acto reldmpago de veinte jbvenes en dos entre si, no tienen por el momento dos en el MFA puedan ser ganados la cuadra donde estd el local de la los mismos objetivos. Los matones para la revolucibn obrera. Junventud Socialista. Dgando de lado apuntan a los activistas sindicales; Pero para tener los ojos abiertos, d hecho de que objetivamente fue una el GNU y d G de O a la izquierda es necesario no dqarse encandilar— provocacibn, lo cierto es que a los marxista. como en Chile, como en Uruguay — cinco minutos, veinte coches de la po- por las ilusiones del "profesionalismo", licia habian concurrido al lugar. P. iQue puede decirnos compahero o la identificacibn con los "intereses Exactamente lo contrario ocurrib acerca de las acciones de la guerrillal unitarios de la Patria" de los mUitares. cuando el asesinato de Frondizi, que Si la clase obrera puede organizar fub sacado a la caUe en medio de R. Desgraciadamente los grupos November 4, 1974 guerrilleros actiian objetivamente co- Es una situacidn diametralmente Esta ley entre otras cosas, anula mo provocadores de la violencia de opuesta a la de Brasil, Uruguay o el derecho de huelga y establece en derecha, al declarar una guerra civil Chile, antes dd golpe. En esos paises, relacidn a esto penas de hasta tres de bolsiUo contra el gobierno que tiene 6ste se did despuds de muchos ailos anos de carcel. d apoyo del 90 por ciento de la po- de democracia burguesa y no tras dos SMATA (Sindicato de Mecanicos y blacidn y dd 98 por ciento de la o tres anos de ella. Esto no quiere Afines del Transporte Autdmotor) y clase obrera. dedr para nada, que tendremos mu el Sindicato Grdfico de Ongaro ban Dan tambifo el pretexto para las chos afios de democracia burguesa. sido intervenidos. Contradictoriamen- acciones de la derecha y la legisla- Sino solamente que en este momento te ban empezado una dura lucha, pi- ci6n reaccionaria del gobierno. Al ne- todavia la burguesia y las fuerzas sando fuerte, los obreros del azucar garle legitimidad al gobierno, estdn armadas no ban cambiado de opi- del norte del pais. Aparentemente las desconociendo las opiniones del mo- nidn. negociaciones que se ha visto obliga- vimiento obrero y la necesidad de Un brusco cambio en la situacidn do a encarar el gobierno, pueden Ue- "educarlo pacientemente" para que de- de la lucha de clases, posibilidad cer- var a un triunfo que compensaria je de apoyar politicamente a un par- cana, dado que el movimiento obrero con creces las otras derrotas. tido burgues. mantiene integra su capacidad de lu El noroeste de nuestro pais es la En pocas palabras: todos losgobier- cha, volveria a poner a la orden del zona de mayor desarrollo capitalis- nos burgueses son ilegitimos para no- dia la posibilidad de golpe. ta, donde se encuentra la fabrica con sotros los marxistas, pero s61o en ex- mayor cantidad de obreros a escala cepcionalisimas circunstancias objeti- P. i Qu6 posicidn adopto el PST nacional, que es el ingenio Ledesma. vas declaramos la guerra civil contra frente a la invitacion de la Presidente Los maestros es otro gremio que dlos. de la Republica a todos los partidos no ha sido derrotado. Todo pareciera Si le dedaramos la guerra civil por politicos y organizaciones sindicales indicar que hasta el ano que viene nuestra cuenta y riesgo como hace y patronales, a una conferencia na- no se volverdn a dar grandes luchas, la guerrilla, nuestra accidn se trans- cional? pero que el movimiento obrero tiene forma en una desgraciada aventura intactas sus reservas, mgordicho, las que sirve a la reaccidn. R. Ldgicamente hemos aceptado. acrecienta ya que aprende de las de Se trata mds que nunca de mobili- Por varias razones. rrotas parciales. zar y unificar a las masas trabaja- La primera, que es una reunidn doras y a las organizaciones arma oficial de caracter semiparlamentario. P. J Cudl es la situacidn del PST das, para defendernos en las calles No concurrir significa arriesgar la en el momento actual? contra los ataques de las bandas ar legalidad duramente conquistada por madas paragubernamentales. Junto a nuestro partido. R. Me he extendido demasiado, asi dlo debemos hacer una denuncia sis- La segunda es numdrica: el 98 por que en forma casi "telegrafica", le da- temdtica de esas bandas, para demos- ciento de apoyo del movimiento obre r^ tres hechos para que los lectores trar que son dlos y no nosotros los ro que tiene el actual gobierno. Apoyo saquen conclusiones. que emplean metodos terroristas. critico, que se estd erosionando, pero Primero, de las diez regiones en que apoyo al fin. Nosotros buscamos y esta dividido nuestro partido, sin du- da la region norte del Gran Buenos P. ^ Qwe posibilidad inmediata hay queremos la confrontacidn piiblica Aires, ha sido la mas castigada. Es de golpe de estado? con el gobierno que tiene el apoyo del movimiento obrero. El objetivo de la que sufrid el asesinato de nuestros companeros y debido a los ataques R. Si la guerrilla intensifica en alto esas entrevistas es desenmascarar al de las bandas fascistas nos hemos grado las acciones y la policia no gobierno ante la clase trabajadora visto obligados a cerrar cuatro de los puede con ella, se plantearia recien como su enemigo de clase. cinco locales que teniamos alii. El entonces la posibilidad de un golpe a La tercera razdn es que considera- la chilena o a la uruguaya. La mds mos una de las grandes ventajas de domingo 6 de octubre bubo una prue- ba de fuego para esa regidn. Se reali- probable es esta ultima variante, sal la legEdidad, la posibilidad que ofrece zaba un plenario de militantes y sim- vo una situacidn extrema excepcional. de propagar las posiciones del parti Por d momento no vemos ninguna do entre la clase obrera. En ese senti- patizantes obreros de Zona Norte posibilidad de golpe de estado. No de do son litiles esas reuniones. Millones Para estos plenarios nosotros acos- bemos olvidar que d actual gobierno de trabaj adores se enteran de ellas a tumbramos a hacer un asado, porque duran todo el dia. Durante la semana es una consecuencia indirecta de la traves de todos los medios de difusidn. derrota de la dictadura mUitar por la se venden las invitaciones a los mili tantes y simpatizantes. Para no abun- clase obrera. Esta derrota no fue to tal, sino condicionada y negociada; P. i Como estd el movimiento obre- dar: se vendieron 800 invitaciones y pero de cualquier forma fue una de concurrieron 650 companeros obreros al plenario de la regidn mds casti rrota. gada por la reaccidn. Todo un exito. Tanto las fuerzas armadas como R. En las ultimas semanas bubo la burguesia, ban sacado experiencias una oleada de huelgas importantes, Segundo, nuestro partido edita ya de ella. La mds importante es que ne- que en lineas generates no triunfaron. mas de 25,000 egemplares de Avan- cesita de la democracia burguesa y Por el contrario, le sirvio como pre zada Socialista y reparte en mano del peronismo para lograr un frente texto al gobierno para hacer votar mds de 22,000 a militantes y simpa linico de los explotadores para enfren- una ley ultrareaccionaria por el con- tizantes. Es asi el semanario politico tar y desviar al movimiento obrero. greso. de mayor influencia del pais. El por-

Intercontinental Press centaje de resuscripciones a las per- Tercero, la mdxima direccion del tros militantes ha sido la mhxima sonas cuya suscripcidn estaba ven- Sindicato Ledesma, esth formada por figura dirigente de toda la huelga del cida, es muy alto. militantes del partido. Uno de nues- aziicar del norte del pals. □

Ven la Posibilidad de uno Fatal Reaccion en Cadena

Amenaza de Crisis Mundial Alarma a 'Business Week'

Por Dick Fidler

[La siguiente es una traduccidn del que la situacidn econdmica empeorard cio exterior todavia no se recuperan articulo "Threat of World Slump en los prdximos seis meses, y que un totalmente." Alarms 'Business Week'", que aparece numero cada vez mayor — abora 51 La raiz de la inestabilidad econd en este mismo numero de Interconti por ciento — predijo que la economia mica mundial, segun Business Week, nental.Press]. va bacia una depresidn como la de es la gran masa de deudas acumu- los treinta", informd el New York lada por las corporaciones y los go- Tim es. biernos durante las tiltimas tres de- Sdlo un 15 por ciento de los entre- cadas de la expansidn de postguerra. "No considero que los Estados Uni- vistados consideraba que la situacidn Esta deuda ba desbordado a los ban- dos estm sufriendo una recesidn", dijo mqoraria en los prdximos seis meses. cos, reducido al minimo la liquidez Gerald Ford en una conferencia de La opinidn de que el gobierno de de las corporaciones, y enfrentado a prensa realizada d 9 de octubre. A1 Ford no estd diciendo la verdad sobre los gobiernos capitalistas con la al- dia siguiente, el presidente del Federal la situacidn econdmica, es respaldada ternativa de tener que escoger entre Reserve Board [Comity de Reservas por pruebas cada vez mds abundantes seguir la politica restrictiva, que agra- F ederales], Arthur Burns, que se pre y contundentes. Business Week, uno de va la falta de liquidez de las corpora sents ante un comite del congreso, los voceros mds sobrios de los circu- ciones y no reduce la inflacidn; y una contradijo al presidente. Hay una re los comerciales y financieros de los politica menos restrictiva, que no ba- cesidn, dijo d importante banquero, Estados Unidos, publicd el 12 de oc ce mtis que posponer restricciones y anadid que es "una recesidn muy tubre un articulo especial sobre "La mas drbsticas. poco comiin, una recesidn que no tiene Economia de la Deuda", que es un sin- Finalmente, "la amenaza mbs gran- precedente en la historia." toma de la gran preocupacidn que de" para la economia norteamerica- Dqando de lado sus rasgos histdri- existe sobre este punto. na, escribieron los editores, es el pa cos especificos, las estadisticas dadas Segun Business Week, "el panorama norama internacional: "el espectro de a conocer d 17 de octubre por el De- econdmico es malo, tanto aqui como una reaccidn en cadena de falta de partamento de Comercio, indican que en el extranjero. Ninguna de las po- pago por parte de los deudores y la actual situacidn econdmica de los tencias industriales occidentales, in- de quiebras de los que prestan, que Estados Unidos encaja perfectamente cluidos los Estados Unidos, ba podi- lance al mundo a una depresidn pro- dentro de la definicidn de lo que es do controlar la inflacidn, y los es- fund a." una "recesidn"; esto es, dos trimestres fuerzos que ban becbo por controlarla El presidente del Comity de Reser consecutivos en los que desciende el ban puesto al mundo mds cerca de vas Federales, Burns, dijo que esta producto nacional bruto. Durante el un desplome econdmico de lo que ba recesidn es "poco comun" porque, se- periodo de julio-septiembre, el PNB bia estado nunca antes desde la d^- giin sus propias palabras, estd acom- de los Estados Unidos bajd en 2.9 cada del treinta." paftada de una "inflacidn galopante" por ciento, informd d Departamento Los grandes deficits en la balanza y un "auge" de las inversiones de ca de Comercio. Fue el tercer trimestre de pagos de mucbos de los principales pital. "He estudiado el ciclo comer- consecutivo en que se vid una baja paises occidentales, seguian diciendo cial durante mucbo tiempo", asegurd en la produccidn total dd pais. los editores, plantean "un terrible peli- ante el comitd del Congreso, "y no co- El Secretario de Comercio, Fred gro en un mundo donde los negocios nozco ningun precedente de esto en erick Dent, insistid en que no bay multinacionales y las instituciones fi- la historia." recesidn. Describid d estado en que nancieras multinacionales ban vincu- Pero los editores de Business Week se encuentra la economia como "un lado a las naciones mds estrecbamen- afirman que las raices de la tendencia espasmo" u "oscilaciones borizontales." te que antes. Los problemas graves recesionaria estdn en el mismo mo- La mayoria de los norteamericanos de un pais pueden infectar a todas delo de inversidn del capital, como lo tienen un punto de vista mas pesimis- las naciones muy rbpidamente. Hace demuestra la colosal deuda publica ta. ya tres meses que quebrd el Bank- y privada de los Estados Unidos. He El 16 de octubre Gallup did a co baus I. D. Herstatt de Alemania — un aqui como describen el proceso: nocer los resultados de una encuesta banco pequeno en comparacidn con "La economia de los Estados Uni que babia realizado, que "mostrd que los titanes de la banca internacional — dos estd sobre una montana de una 7 de cada 10 personas consideraban y los mercados alemanes del comer deuda de $2.5 billones; montana for-

November 4, 1974 mada por todos los automdviles y ca- Es inevitable que la economia nor- cutivos que fueron entrevistados por sas, todas las fdbricas y mdquinas teamericana crezca mas lentamente Business Week estdn de acuerdo, in- que ban hecho de la economia nor- que antes." formd esa revista, en que la re- teamerlcana la mas grande y mas Segun el, "Incluso si los Estados cesidn que se estd desarrollando aho- rica de la historia de la humanidad. Unidos no ban excedido su capaci- ra serd la peor que se haya visto en La segunda gran economia capitalis- dad de endeudamiento — que es un V arias ddcadas. Un economista de la ta es la de Japdn; pero se necesita- punto muy discutible—no puede se- Universidad de California advirtid ria Una suma mayor que la tercera qug "debido a la actual estructura fi parte del producto nacional bruto de nancier a, el sistema no puede sobre- Japdn s61o para pagar los intereses llevar una recesidn tan bien como en de la deuda de los Estados Unidos. el pasado." "La economia norteam ericana es la El vice presidente de un banco de Economia de la Deuda sin paralelo. Chicago dijo: "Una baja importante Tiene a los prestamistas mbs gran- en la actividad comercial causaria un des, a los prestatarios mds grandes, agudizamiento mucho mayor de las el sistema financiero mds sofisticado. liquidaciones y quiebras de lo que Las cifras son tan grandes que senci- se haya visto durante los liltimos llamente aturden: un billdn de ddla- treinta anos." res es la deuda de las companias, Los editores de Business Week plan- 600 mil mill ones de ddlares es la teaban una duda sobre la capacidad deuda hipotecaria, 500 mil millones de los bancos y el gobierno para con- de ddlares es la deuda del gobierno, tener los efectos de una reaccidn en 200 mil millones de ddlares es la cadena de quiebras, una vez que esta deuda piiblica. Para alimentar casi hubiera comenzado. ". . . los riesgos tres decadas de auge economico de son mayores que en los treinta . . . postguerra internamente, y para ex- Quizd el mayor peligro sean los mi portarlo al extranjero, estanacidnha les de millones de ddlares que se ban tomado prestado un promedio de 200 prestado a deudores cuya capacidad millones de ddlares al dia, desde que de pago ha sido comprometida por el termind la Segunda Guerra Mundial." alto precio del petrdleo." La revista plantea lo que llamd "dos El alza en los precios del petrdleo preguntas criticamente importantes" que tuvo lugar hace un afto, sdlo sobre la economia norteam ericana: agrav6 la espiral inflacionaria, que "• 6 Se puede pagar o refinanciar BURNS ya estaba fuera de control. El origen toda esta deuda, como es debido? de esa presidn inflacionaria no estd "• i Puede la economia seguir ab- guir acumulando su deuda, como lo en la avaricia de los sheiks drabes, sorbiendo una deuda que le permita hizo en el periodo de postguerra, por- como ban sugerido recientemente los continuar creciendo a un ritmo cerca- que el tipo de politica gubernamental funcionarios de Washington, sino en no al del periodo de postguerra?" que lo permitiria no haria mas que la tendencia a una inflacidn perma- Business Week contesta negativa- alimentar la inflacion." nente que es inherente al capitalismo mente las dos preguntas. Segun ellos, Entrevistas con banqueros y econo- monopolista. Esto es especialmente estd por terminar la etapa de creci- mistas destacados, segun Business evidente en la acelerada expansidn miento casi ininterrumpido de la post Week, ban demostrado que existe un del crddito. guerra. Quizds mds importante toda- consenso bastante amplio entre los He aqui como describid Business via sea el fracaso de los mdtodos gu- capitalistas norteamericanos de que Week eJ proceso: bernamentales tradicionales para evi- la unica respuesta para parar la in- tar o aminorar el impacto de una re- flacidn es la recesion. De hecho, se De 1945 a 1970 el mundo gozd cesidn. De hecho, los metodos key- gun ellos no se puede escoger entre el auge econdmico mds largo de la nesianos de ayuda econdmica gu- inflacibn o recesidn. historia, alimentado en gran parte con bernamental para alentar la industria "Si no se controla la inflacidn", dijo dinero prestado. Los negocios toma- o el comercio, son en si mismos una Robert W. Stone, vice presidente ge- ban dinero prestado a un ritmo pro- de las principales fuentes de la espi- cutivo de la Irving Trust Company digioso para producir, los consumi- ral inflacionaria. de Nueva York, "entonces las condi- dores tomaban dinero prestado a un El editor de Business Week sobre ciones son tales que tarde o tempra- ritmo prodigioso para comprar, los mere ados e inversiones, John Carson- no tendremos una recesidn de consi gobiernos tomaban dinero prestado a Parker, explicd las implicaciones de derable profundidad y duracidn. El un ritmo prodigioso para mantener esto: ". . . los Estados Unidos cargan problema es que tipo de revds econd- los g ercitos y para construir escue- ya una deuda tan pesada que es du- mico esperar. Muchos de nosotros pre- las y caminos. Los 2.5 billones de dd- doso que se pueda pagar por ente- feririamos tener el revds de una vez. lares de deuda que pesan sobre los Es ro, y es casi sguro que no se po- Serd mds pronunciado de lo que hu- tados Unidos, son sdlo una parte del drd tomar prestado el dinero nece- biera sido hace dos o tres anos; pe total de la deuda que pesa sobre el sario para que la economia siga cre ro serd menos pronunciado que den- mundo, que podria llegar a los diez ciendo como lo habia venido haciendo tro de dos o tres aftos." billones de ddlares." desde la Segunda GuerraMundial . . . Muchos de los economistas y ge- Esta deuda ha seguido aumentan- Inferconfinental Press do con un ritmo siempre creciente. innovaciones tecnolbgicas aceleran la mentar las reducciones de impuestos En 1946, la deuda total de los Es- renovacibn del capital fijo, aumen- que se dan a los inversiones a pla tados Unidos, piiblica y privada, tando asi la necesidad de financia- zo fijo, del actual 7 por ciento a 10 era de 400 mil miUones de ddlares, miento a corto plazo. Los prdstamos por ciento. cast el 60 por ciento pertenecla a ban aumentado dos veces mds rd- Resumiendo la sabiduria colectiva la Tesoreria de los Estados Unidos. pido que los depbsitos bancarios. de los economistas capitalistas, John Para 1960, la deuda total de los Los bancos ban pedido prestado ca Carson-Parker, uno de los editores Estados Unidos se habia duplicado. da vez mds al mercado financiero de Business Week, admitib que "si En 1970, se habia vuelto a dupli- internacional. Las tasas de interes bay algun otro remedio para la in car. "Los indicadores econbmicos cla ban subido mucbo, y frecuentemen- flacibn actual, todavia no se ba en- ve—el producto nacional bruto, el te se requiere mds crddito, a inte- contrado . . ." ingreso individual, las ganancias de reses mds altos, para pagar los prds- Los lineamientos del program a eco- las compafiias, y cosas por el es- tamos vencidos. nbmico de Ford son proteccionistas tilo —ban crecido todos en un 500% "Y entonces", como dijo d editor y recesionarios. desde la Segunda Guerra Mundial", de Business Week sobre mercados Pero ni siquiera una recesibn impor segun Business Week. "Los indicado e inversiones, "de repente, todo em- tante puede resolver las contradiccio- res clave del endeudamiento ban cre pezb a desplomarse." En su opinibn, nes fundamentales de la economia ca- cido tres o cuatro veces esa cantidad, "todavia no estdn completamente cla- pitalista. "El resultado final de la cri principalmente desde 1960. ras las razones. Lo linico claro es sis que atraviesa la Economia de la "Las corporaciones ban triplicado que ningiin auge continiia por siem Deuda", confesaron los editores de su deuda en los dltimos quince aftos. pre." Sin embargo, los marxistas, Business Week, "serb el de reducir las La deuda de la Tesoreria, que casi que ban analizado y comprendido filas de quienes pueden recibir crbdito no babia crecido durante los anos las leyes internas que gobiernan la y de quienes pueden darlo. Todas cuarenta y cincuenta, did un salto acumulacibn dd capital, predijeron las leyes contra los trusts que se de- basta alcanzar los 180 mil millo- esta crisis bace mucbo tiempo. creten en el mundo, no podrbn evi- nes de dblares, a partir de 1960. 6 Cbmo contener la inflacibn mun tar Una concentracibn todavia mayor Las deudas a plazos, la deuda bi- dial, control aria y producir una can de la riqueza en unas cuantas ma- potecaria y la deuda piiblica ban tidad suficiente de bienes a bajo cos- nos, porque en la medida en que ba aumentado un 200% a partir de to para todo d mundo? Un punto ya crisis en la Economia de la Deu 1960, y la deuda de las agendas clave que tendria que ser atacado da, sblo los mbs grandes y mejor federales ba aumentado mbs de son los gastos iniitiles: en primer equipados podrbn sobrevivir." 1,000%." lugar, los enormes presupuestos mi- En otras palabras, la linica perspec- La deuda de los consumidores au- litares de los paises imperialistas, tiva que tiene la economia capitalista mentb mds de un 50 por ciento des que son una fuente importante de es la de mbs concentracibn y mono- de 1970. Los trabajadores, cuyo inflacibi^ en segundo lugar, acabar polizacibn y, con esto, a largo plazo, salario real estd descendiendo ante con el lucro de las corporaciones. la seguridad de mayor inflacibn y los efectos de la inflacibn en los Esto querria decir nacionalizar las una reduccibn en los salarios reales precios al por menor, estdn cada corporaciones, sometidndolas al con y en el nivel de vida de las masas. vez mds preocupados por el peligro trol de la sociedad en su conjun- Hay una pregunta que subyace en de Una recesibn. Una encuesta reali- to, y convertir la industria arma- las mentes de los economistas y po- zada recientemente por el Centro de mentista en una produccibn social- bticos burgueses y que todavia no Investigaciones de la Universidad de mente litil. se atreven a expresar abiertamente: Michigan, encontrb que la confian- Estas medidas estdn, desde luego, iPodrbn salir del paso impunemente? za de los consumidores estd en el mucbo mds alld de las intenciones Entre todos los que colaboraron en punto mds bajo que se baya re- capitalistas. De becbo, la Casa Blan- el mimero especial de Business Week, gistrado en los veintiocbo anos que ca estd planeando aumentar el pre- Carson-Parker fue el que mbs cerca se ba venido realizando la encuesta. supuesto de guerra oficial en 8 mil estuvo de decirlo claramente: ". . . Se Los directores de la encuesta dije- millones de dblares para d prbxi- rb una pildora dificil de tragar pa ron que "la experiencia sugiere que mo ano fiscal, a una cantidad sin ra mucbos norteamericanos (la idea la combinacibn actual de un gran precedents de 92,000 millones de db de contentarse con menos para que pesimismo de los consumidores y el lares. Y d Departamento de Defen los grandes negocios tengan mbs). Se se dice que este aumento dd 9 por descenso de los ingresos reales, pue- rb particularmente dificil de tragar ciento no bastard para contrarrestar de llevar a una recesibn severa." porque es bastante obvio que, sibien el impacto de la inflacibn sobre los los grandes negocios y los grandes programas mUitares. bancos son las victimas mbs visibles En toda la economia, el cr^dito ba Lo que es mds, el discurso que del mal que aquqa a la Economia propiciado la inflacibn, y la infla- pronuncib Ford ante d Congreso d de la Deuda, ellos son tambien, en cibn ba ocasionado que se tome 8 de octubre, incluye medidas infla- gran medida, la causa deesemal. . . mbs dinero a cr^dito. El dinero que cionarias muy claras, como levan- "Nada de lo que esta nacibn, o cual- ba sido prestado en la bolsa de tar d control sobre los precios dd quier otra, ba becbo en la bistoria valores ba sido destinado cada vez gas natural y establecer cuotas pa econbmica moderna, se compara en mds a financiar "nuevas indus- ra la importacibn de petrbleo — lo dificultad al trabajo de bacer que la trias" — como la venta de concesio- que daria a los monoplios petro- gente acepte esta nueva realidad. Y nes y licencias, y la creacibn de leros mayores facilidades para subir bay grandes dudas de que se pueda conglomerados — donde las rdpidas arbitrariamente los precios—, y au bacerlo." □ November 4, 1974 Ninguna Reconciliacion' Con el Ejercito Griego

[El siguiente editorial aparecio el crean las Juntas; restauran monar- res y ios inteiectuaies progresistas no 14 de septiembre en Ergatike Pale, i quias; instauran dictaduras mUitares deben oividar ni por un momento que semanario que refleja las posiciones con sus tanques; asesinan a ios ei ejercito no esta por encima de ia de Ids trotskistas griegos. Esta es una obreros y estudiantes miiitantes y ai iucha de ciases, sino que es en cam- traduccion del ingles. La traduccion pueblo. Obviamente son unos pard- bio un brgano de opresion en manos del griego ai ingles aparecib en In sitos. Ei papei que ban jugado hasta de ia ciase dominante. Como siempre, tercontinental Press el 14 de octubre ahora demuestra que la coexistencia y aiin todavia mas en ei actual con el tituio "No 'Reconciliation' With pacifica entre eiios y nosotros es im- periodo de crisis estructurai general the Greek Army"]. posibie. O eiios nos ponen ia bota del sistema capitaiista, es ei principal encima, o nosotros reconstruimos ia factor contrarrevoiucionario. La sociedad sobre bases nuevas; sin ex- contradiccibn de ciase que existe entre piotacibn ni opresion, sin parasitos." ia oficiaiidad y ios oprimidos, ia con- Uno de ios objetivos centraies de Esta escisibn entre ei pueblo y ei tradiccion entre ios condecorados Caramaniis y de su gobierno de "sai- ejdrcito anuncia ios ascensos revoiu- jerarcas miiitares y ios soidados ra vacion nacionai" (esto es, de saiva- cionarios que pianteardn finaimente sos, es absoiuta. Estan en campos cion capitaiista), y que io deciara- ei problem a de ia transform acion re- sociaies opuestos. ron desde ei primer dia, es iograr voiucionaria de ia sociedad. Por eso, Una "reconciliacion entre ei ejercito y ei principal objetivo del gobierno de Mientras ios conscriptos obedezcan ei pueblo." De todas las consignas Caramaniis y Mavros es cerrar esta ciega y acriticamente las brdenes de del gobierno, 6sta es la que mejor brecha. sus oficiaies como titeres, se repetird expresa ei objetivo reaccionario de (iComo? Quitando a aigunos repre- una y otra vez ia historia de ia in- Caramaniis y ei papei que juega ei sentantes de ia dictadura a ios que tervencion miiitar en las crisis sociaies dirigente del ERE^ como saivavidas ei pueblo odia mds (por ejempio, y poiiticas; ya sea bajo ia forma de del sistema capitaiista. loannides). Borrando ios crimenes goipes de estado o de supresion vio- Ei goipe de estado de abrii de 1967, que cometieron ios otros, en nombre ienta de las iuchas obreras y de las ios sangrientos acontecimientos de del "perdon nacionai." Deciarando una manifestaciones popuiares. Y esto sera noviembre de 1973 y ei goipe que amnistia para todos ios crimenes vdiido sin importar cuan "democrh- dieron en Chipre ios oficiaies de ia "poiiticos" de ios gobiernos dicta tico" o "pariamentarlo" sea ei gobierno Guardia Nacionai con ia proteccion toriaies. Cuitivando en ia mente del de un pals. de ia Junta, habian abierto una pueblo ia idea de que ei ejercito ha Para no reabrir este camino, las brecha insaivabie de sangre y vueito a su trabajo y que de ahora masas proietarias y popuiares deben despojos entre ei pueblo griego y ei en adeiante obedecera incondicionai- orientarse hacia ia creacibn de un ejercito. (Y cuando decimos ejercito, mente ai gobierno "democrdtico." nuevo gobierno de obreros y campesi no queremos decir ios soidados rasos, Este intento del gobierno estd nos. Los soidados, hijos del pueblo que son ios hijos del pueblo. Nos apoyado por ei articuio de Eiiou ti- trabajador, deben exigir sus derechos referimos a ia oficiaiidad, que es ei tuiado "La Nacion y ei Ej6rcito", que democraticos. Deben organizarse de principal sosten del sistema capitaiista aparecib ei domingo 8 de septiembre tai manera que puedan vigiiar cuai- que expiota y oprime ai pueblo en Aughi (ei diario de ia fraccion quier accion arbitraria que cometan griego). "interior" del Partido Comunista). Su sus oficiaies y para que puedan crear Con su logic a senciiia, ia gente recomendacion es ia siguiente: 'De- una oposicion de masas cada vez que comun piensa: "Los oficiaies reciben bemos comenzar una etapa de perdon ios jerarcas miiitares consplren para grandes sueidos y muchos priviiegios nacionai y de reconciiiacibn entre ei atacar ai pueblo a trav6s de goipes con ios que nosotros ni siquiera sona- pueblo y ei ejercito." Decia que ai miiitares, de apiastar las hueigas mos. Ei gobierno nos carga de pueblo griego 'le gustaria mucho oi- obreras o de masacrar a ios activistas impuestos hasta matarnos para vidar io que ha pasado." estudiantiies y popuiares. □ beneficiarios a eiios. Pero ios oficiaies La iinea de ios reformistas de EDA3 y de KKE^ esta ciara: perdon 1. Se pueden pedir copias de este y reconciliacion. Es extrano que Eiiou periodico a Giannis Feiekis, Ergati no haya sido integrado todavia ai ke Pale, Emm. Mpenake 28, Atenas, gabinete en agradecimiento a sus Grecia. Una suscripcion por seis me- servicios. Es facil suscribirse... ses cuesta 155 dracmas (un doiar Los obreros, ios campesinos po- equivaie a 27.7 dracmas) para Eu- bres, ios estudiantes, ios trabajado- Para recibir IP durante seis me- ropa; 215 dracmas para America; ses, envie $7.50 con su nombre y 155 dracihas para Asia; 215 dracmas direccibn a: para Africa y 310 dracmas para 3. Enosis tes Demokratikes Aristeras Oceania. — Uni6n de ia Izquierda Democratica, ei frente electoral historico del PC. Intercontinental Press 2. Ethnike Rizospastike Enosis — P. O. Box 116, Village Sto. Union Radical Nacionai, ei principal 4. Kommounistiko Komma tes Eiia- New York NY 10014 U.S.A. partido burgues conservador. dos—Partido Comunista de Grecia.

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From Stalinism to Trotskyism in New Zealand

[The following speech was given by sky, who for sheer treachery and deceit of tyranny we had defended, and how John Colquhoun, a well-known New Zea was rivalled only by the odious Stalin we had been fooled. land socialist, at a dinner held in Auck himself. The result was that the communist land August 10 to celebrate the fifth anni Through the Third International, they movement was fragmented and de versary of Socialist Action, a Trotskyist dominated and controlled the world com moralized. A few retained their pathetic fortnightly newspaper. munist movement — often using foul gang faith in the Soviet leadership. They are [For many years, Colquhoun served ster tactics. As a result, the world revolu the remnant in the "Socialist Unity" party as secretary of the Auckland Socialist tion was betrayed and failed to develop. today. A few others transferred their blind Forum. He sponsored the publication of And when eventually revolutions did oc allegiance to the new Chinese Communist the magazine Socialist Forum. At present cur in places like China and Eastern bureaucracy. They are the Communist he is president of the Auckland Workers Europe—because of the disarray of the party remnant and its splinter group to Educational Association. system of world imperialism — the revolu day. But most left the movement. Some, [The text of the speech was first pub tions were led by Stalinist parties which like myself, forsook Marxism altogether, lished in the September 27 issue of So distorted the new workers states, just as turned to the pragmatism of Social Demo cialist Action. 1 the world's first workers state, the Soviet cracy, and were attracted to anarchist Union, was earlier distorted into a ideas for a time. But many more turned tyranny. their backs on politics altogether, became At the time I was attracted to the New dispirited and pessimistic, and were lost to the socialist movement. A few even It is a great honour to be asked to Zealand Communist party, in I94I, turned to the right, and became converts speak at this anniversary. Because the Stalinism was at its peak. The Soviet to Catholicism and the like. It was a time emergence of Socialist Action marked the Union was fighting fascist Germany. New of demoralisation and dismay. culmination in New Zealand of a long Zealand was at war, under its first La process, extending over many decades, bour government. We young recruits knew However, some of us tried to pick up from which a scientific socialist movement nothing of the suppression of the Left the pieces. That was how the organisation has finally emerged. But during that Opposition in Russia and the crimes of Called Socialist Forum came into being. period, there were many false starts and the Stalinist regime. Russia was the Socialist Forum was started in Welling wrong turnings. As one who has been world's first socialist state and had to be ton in 1958, largely by ex-Communist personally involved in some of those supported at any price. To oppose it in party people. It faded out in Wellington wrong turnings, I shall say something any way was, to us, to serve capitalism. about 1965, but it had started up in Auck about an earlier period of Marxism in The atmosphere in the New Zealand land in I96I—though here it was a com New Zealand — in particular, the period Communist party then was very different bination of ex-Communists and disillu which was affected, quite disastrously, by from that in the Socialist Action League sioned left-wingers from the Labour party. what we have come to call Stalinism. today. There were no Educational Con For the Labour party had also produced It is important to understand the nature ferences of the kind that has occurred this its crop of dispirited socialists, having of Stalinism. First, because of the pro weekend. We did not seek to enter into abandoned its socialist objective much found influence it had on the develop rational discussion with those on the left earlier, during the period of the first La ment of the international socialist move who differed from us. We did not seek to bour government. ment. And second, because it is still with put up our ideas for comparison with As its name suggested. Socialist Forum us, though in a much weakened and more others. aimed to provide a forum for reexamin- easily exposable form. The present-day I think that the main characteristic of ing and rethinking left-wing ideas. In a apologists for the Soviet and Chinese bu Stalinism then, as it is today, was its way, it tried to do the impossible, by reaucracies are the remnants of this rigid intolerance and lack of any demo being a voice for widely disparate view growth today. And although they are cratic discussion. There was one line, that points (as the Wellington group behind mostly ageing and less potent agents com of the leadership—which meant that of The Paper is trying to do today). But I pared to the earlier years, they still create the Soviet leadership — and all who de believe Socialist Forum also filled a posi mischief and confusion—especially the viated became "capitalist agents." When tive role. It -kept alive the socialist idea, neo-Stalinist variety. Maoism, with its faced with critics, Stalinists did not debate and it did rally support for many pro China-tripping and propaganda—which with those critics' ideas and engage in gressive causes. In Auckland and Welling sounds very much like an old record open discussion. Instead, they launched ton its members were active in the early we've heard before. It is so like the earlier a campaign of vilification and slander, antiwar movement —opposing the destruc Soviet variety which in an earlier period usually based on the most preposterous tive sectarian tactics of the Maoists. But subverted and betrayed the world socialist assertions. For example, the assertion that it did not develop a coherent socialist movement. Trotsky was an "agent of the Gestapo." ideology, as some of us, its founders, had Stalinism emerged in the early thirties, Well, that system of monolithism in the hoped it would. when, despite the warnings of Lenin just communist movement lasted for a couple Now, you may ask; Why did not the before his death, the privileged Soviet bu of decades —into the early 1950s —and scientific socialist ideas of the world reaucracy which had taken power under then it started to crack up. The revela Trotskyist movement take root in Socialist Stalin, having expelled Trotsky, system tions of Stalin's excesses, following his Forum? I think I can provide part of the atically suppressed the Left Opposition in death, and the frightful murders of inno answer, by quoting to you a letter from Russia, by murdering almost all the old cent people which had occurred right up a member, which was published in one of revolutionaries, and putting in office crea to that time—in Eastern Europe as well — the earliest numbers of the paper called tures like the public prosecutor Vyshin- revealed to many of us just what sort Socialist Forum. I quote it because it

November 4, 1974 reflects very clearly the mood prevailing finance over the years storing away in Trotskyist ideas were around, but the on the left at the time. the mind a perspective of 4,000 or 5,000 mood among our members was unrecep- "We are in that terrible limbo between years of human activity, interpreting and tive, even though events had proven the idealism of youth when all the issues explaining it—and yet not being able to Trotsky right. Perhaps our earlier condi were so simple and clear, and a develop plan a week or a month ahead; knowing tioning against Trotskyism (the Constitu ing understanding of the banal realities (but not admitting it to oneself) that tion of the New Zealand Communist par of NZ politics. We are not yet so far re the only successful socialist revolution ty listed as one of the grounds for ex moved from the Marxist vision that we is —in the areas that count—a failure, pulsion: "voluntary association with are no longer stimulated by it; but we and that this appears to be in the nature Trotskyists") and our shattered morale have come close enough to realities to of things; it is the accumulated weight had made us resistant to such reasoned be depressed by the utter lack of direction, of all these things that causes you to say: arguments. of meaningful content, in practically To hell with it, I'm really an anarchist." And so it remained for a new genera everything that passes for political activity The letter goes on in this vein, and then tion to make the fresh start. Socialist Ac in this country, at whatever level you occurs this passage: tion was started in 1969. Socialist Forum like: the parties, the unions, the PTAs, wound up in 1971. We realised we were the cities and boroughs and counties, the "I still receive occasional parcels of no longer needed. But it is with some women's and youth groups, the Maori Trotskyite literature from Australia — all pride that we can now point out that organisations. We no longer become fer of it interesting, and much of it well ar the last number of Socialist Forum car vently partisan about Algeria or Albania; gued— but surrounding it like an aura ried a plea to its members to subscribe but when they gang up on Cuba we find that faint sense of nuttiness which all to the new paper Socialist Action. that the old fires are far from dead; when causes that have a pope tend to convey, And so today we have a new movement, they fire 50-megaton bombs we feel some to me anyway." celebrating tonight its fifth anniversary. thing of the old sense of siege and crisis Now, you wUl not agree with his reason There is new hope; a new beginning. But that galvanised us on lesser issues in other for rgecting Trotskyism, and probably it is not the same old record being played days. conclude that the real reason lies in the again. The lessons of history have been "Finding suitable organisational forms, despair reflected in the earlier part of learned. We are moving toward a socialist believing in causes you know you cannot his letter. The point I want to make is: future. □

Spanish Police Report Arrest of Trotskyist Group

[The following article, entitled "Ha ors of such illegal activities. Among identify her and establish her where Sido Desarticulado un Grupo de la those arrested were Domingo Chamdn abouts and, once this was accom 'Liga Comunista Revolucionaria-ETA Gutierrez and Jorge OlaUa Valera. plished, to become fully acquainted Vr" (A Group of the "Revolutionary Valuable facts were obtained from with all her activities and possible con Communist League-ETA VF Has their statements and from an examina tacts with other elements involved in Been Broken Up), appeared in the Oc tion of papers that were seized. These such activities. tober 13 issue of the Barcelona daily made it possible to proceed efficiently As a result, police agents were able La Vanguardia Espanola. It consists to break up the group to which the to learn the identity of this woman of a police report, the details of which detainees bdonged — part of the so- and various individuals who worked have not yet been verified by indepen caUed Liga Comunista Revolucio with her in these illicit activities, and dent sources. naria-ETA VI. they deployed their forces in such a [The Liga Comunista Revolucio- Subsequently, it was discovered that way as to effect the arrest of aU the naria-ETA(VI) is a sympathizing or there were other individuals who were members uncovered. ganization of the Fourth International continuing the same type of activity, On October 8 Lila was arrested. active in the underground political trying to reorganize what the police She was discovered to be Maria Rosa movement dedicated to overturning had succeeded in breaking up. The Rius Camps (born in Barcelona Franco's fascist regime. distribution of subversive pamphlets May 24, 1947, illustrator, daughter [The translation is by Intercontinen directed particularly at working-class of Adolfo and Angeles, married, and tal Press. ] and student strata was observed. Al residing at Rafaela Ibarra 44, Apart so noted was the circulation of their ment 4L). When arrested in the street, newspaper, Combate, which urged she denied having a residence in the support for the labor agitation direct capital, stating that she had just ar The Direccidn General de Seguridad ed by the Communist parly and af rived from Barcelona. [General Security Office] has released filiated organizations. A few hours later on the same day the following statement to the mass In their attempts to identify the per Martin Cacaussa Calvet was arrested media: sons acting in this sphere; the investi (born in Palau Sabarder Febru As part of ongoing police surveil gators learned of a woman called Lila ary 22, 1945, son of Juan and Do lance of individuals who are attempt (approximately twenty-five years old, lores, a fifth-year student of industrial ing clandestinely to organize acts brown hair, of average height, with engineering at the Escuela de Barce aimed at subverting state security and an identifying scar on the right side lona, with the same address). The ar public order, last spring operatives of of her face). She was in charge of a rest was carried out in the vicinity the Madrid Police Department Region cell and was a member of the local of his residence. He too stated that al Brigade for Social Investigation committee in Madrid. he had just arrived from Barcelona. arrested various leaders and instigat The police proceeded promptly to When the police identified themselves.

Intercontinental Press the aforementioned individual threw band's name. There a room was Mmeelf on one of the inspectors, strik found whose walls were lined with ing him violently and resisting arrest. cork to prevent noise from the opera Once subdued, he was placed in a tion of printing machinery from be squad car but not before he had ut ing heard. It was there that the elec tered grave insults and caused a big tric photocopying machine and most commotion, saying that he was being of the copies of clandestine and sub kidnapped, in order to attract public versive propaganda used in the joint attention and ensure that news of his activities of the Liga Comunista Revo- arrest would reach his residence near lucionaria and ETA VI were seized. by. Once inside the official vehicle, he In the same places among the docu tried to seize the pistol of one of the ments and papers found, was the blue officers, continuing his aggressive ac print for an operation designed to abet tion and Causing injuries to the po the escape of ten members of ETA VI lice officers. who are serving sentences in the Se The police immediately proceeded to govia jail. The operation was called enter and search the Calle Rafada "Altamira" and it was to be carried Ibarra residence of the married cou- out by a commando group of ten plei arresting Juan Font Perez (born men. They were to carry arms with April 4, 1948, in Barcelona, son of which to protect and arm the escapees Ramdn and Angdes and husband of once their mission was carried out. Montserrat Cervera Roddn, who is The plan was to go to the afore currently serving a three-year sentence mentioned prison on a specified date for belonging to the technical com in four Morrises and SEAT 124s with mittee of the Liga Comunista Revolu- Segovia license plates, which they in cionaria. Among other criminal activi tended to steal beforehand. ties charged against her, the indict In the plan and in a blueprint drawn ment cited that she was assigned to up, the position of the ceUblocks for planning terrorist acts). common and political prisoners was Next the police proceeded to identify plotted. Uy on another street. and establish the whereabouts of one Also plotted was the foundation of Next to be arrested was Lucia Vi Lucio Jose Gonzdlez de la Fuente the artillery armory abutting the peni cente Lafuente (born in Zaragoza De (born October 5, 1949, in Vallado- tentiary. cember 5, 1955, daughter of Mariano lid, son of Lucio and Maria Luisa, In the instructions for the action, the and Lucia, singlg a third-year philos student of economics, resident of the following tasks were spelled out for ophy student, who resided at Calle fourth floor center apartment at Calle members of the commando group: Navarra 35). Olivar 42). This individual also de Four were to drive the cars. There The final arrest was of Maria Do nied living in Madrid, saying that was to be a chief of operations called lores Rivera Menendez (born in Ma he had just arrived from VaUadolid. "the architecf and five "guitarists," who drid August 8, 1954, the unmarried It was decided to make an imme would each carry a submachine gun. daughter of Jesiis and Balbina, a stu diate search of the CaUe Olivar resi Training was in progress for "trav dent of psychology, residing on the dence. Arrested there was Felisa Eche- eling down below," by which they third floor of Castillero Pinero). She goyen Castaneda (born in Madrid meant the excavation of an under had continual contacts with Rosa January 18, 1948, the daughter of ground tunnel to obtain access to the Rius in certain apartments and cafe Jesus and Maria Asuncidn, key-punch subbasement of the penitentiary. terias in the Argiielles zone. Among operator, wife of Lucio JoseGonzdlez). They had also arranged to rent an the papers found in the residence were When the police officers arrived with apartment in a buUding facing the documents that gave convincing evi the required court order, an odor of cellblock of the jail where the political dence of plans to steal a duplicator burned papers could be detected, and prisoners are lodged. various printing materials were found from a school in the Chamber! sec In the plan or blueprint there were along with the charred remains of sev tion. elaborate indications of the positions eral pieces of clandestine propagan As a result of the series of opera of the prison guards, instructions on da— simiiar to some found in a purse tions carried out by the police it has where the vehicles should be posi in her possession. been possible to confirm the links tioned before the action, and other The police continued their opera among all the individuals described, minute details. It was also reported tions resulting in the arrest of Juan who made up this group of the Liga that persons involved were soon to re Maria L6pez de Sa de Madariaga Comunista Revolucionaria-ETA VI. ceive money from a foreign country (born November 19, 1948, in Grano- In the residences of each of them quan for this operation and for renting an Hers, son of Eugenio and Maria Te tities of subversive propaganda ma apartment where the escapees could resa, fifth-year student of physics and terials were found. It was learned, hide temporarily. mathematics, married, resident of moreover, that the Martin Caussa All the prisoners, along with the apartment 4L, Calle Navarra 35). [Cacaussa]-Maria Rosa Rius couple material and propaganda seized, have This individual also gave a different had rented the second floor on Calle been placed at the disposal of the address, saying he lived with his fam- de Maidez Alvaro 27 in the hus competent judicial authorities. □

November 4, 1974 Statement of Portuguese Postal Workers As we all know, we are not used to working Sundays; so it would be nat ural for less work to be done. There [The following statement by the The CPS suggests that the workers fore, the CPS calls for using our ComissSo Pro-Sindicato (Union Or demand that the pay rate this Sunday breaks and refreshment periods to difi. ganizing Committee) of the Portuguese be the same as other days of the week, cuss the present crisis, to sharpen our postal workers was published in the since this work is voluntary. The CPS vigilance in the struggle against fas October 3 issue of Com&rcio do Fun- proposes that the money we get for cism and capitalist exploitation. chal, a left weekly published in the this extra day be turned over to the Let us turn this working Sunday capital of the island of Madeira. The union funds for workers who have into a day of struggle for purging the translation is by Intercontinental been laid off and for comrades on administrators connected to the old Press.] strike. We advise all concerned that regime, for building the union, and such a contribution would also be against fascism and capitalist ex voluntary. ploitation. □

In his speech of September 29, the premier, Brigadier General Vasco Gongalves, appealed for a day of vol untary work throughout the country GMR's Stand on Sunday Labor in Portugal on next Sunday, October 6, 1974. [The following statement was distributed have been mobilized for this working Sun He said that this was a practical way October 6 by the Grupo Marxista Revo- day, and it would mean dividing the toil in which the workers could respond lucionaria (GMR— Revolutionary Marxist ers if at this moment we called for not to the reactionary coup planned by Group) in Lisbon. The translation is by participating in this campaign. So what the fascists. Intercontinental Press. ] we call for is taking a part of this Sunday The revolutionary vigilance exer for meetings in the workplaces to discuss cised by the popular masses on the who is getting the profits from this day highways of Portugal, and especially of labor. in the suburbs of Lisbon, along with Comrades, The victories of the working class have the huge street demonstration led by The main credit for the victory over always been commemorated by days of the reactionaries belongs to the working struggle against the power of the bosses. our letter-carriers, demonstrated our class and all the working people who This Sunday should be a day of struggle profound hatred of fascism and cap mobilized in the last days of September primarily for the expropriation of the cap italist exploitation. to form guard pickets. The working class italists implicated in the coup attempt, The ComissSo Pro-Sindicato (CPS) must impose punishment on all the former for the seizure of their profits, fortunes, believes that the struggles of the rulers, elements of the armed forces, and inheritances, and properties! toiling masses, led by the proletariat, the capitalists, who have shown once As much as possible, the product of must be continued. And it is for this again that they have not given up trying this day of labor must go to the workers. purpose that we call on all postal to crush the workers movement and rob Let us organize assemblies in the factories workers to go to their places of work the workers of their rights. Now that the to discuss the problems that have arisen lately. As for the money we get, let us on that day. The CPS points out that reactionaries have suffered this defeat, we cannot harbor any illusions that the whole use it to help our comrades who are now taking part in this day of labor is problem has been cleared up! on strike, or those who, after fighting voluntary and the workers must de We must remain on guard against all hard struggles, now find themselves in dif cide what to do according to their forms of reaction, such as any laws de ficult circumstances, or put it into our revolutionary consciousness. priving the workers of the right to assem shop or union strike funds. We must use this day to raise our ble, to purge their oppressors, to strike, Trade- Union Democracy! consciousness, to improve our orga or to demonstrate in the streets, that is, Down With the Antilab or Strike Law! nization, and to step up the struggle to struggle in defense of their interests. Use Sunday's Pay to Build the Strike that we have been waging to purge If we mark time, the reactionaries will Funds! □ the administrators connected to the be able to reorganize more easily. The old regime, to win a higher standard capitalists remain in possession of the wealth we produce, while the workers are of living, and to buUd the union. Pentagon Chides 'Nervous Nellies' not even armed and organized to respond We must also understand that in firmly to attacks by their enemies! normal course the ones who will bene Today they are telling us to contribute The U.S. Defense Department, taking fit essentially from this extra day of a Sunday of work. But we know very well issue with earlier reports, estimates that work are the bosses. So, we must keep that in this capitalist system the ones who in the event of an all-out nuclear war, a close watch on the money that comes get the profits from our labor are the cap the earth's ozone layer would not be suf in on that day to see that it serves italists. We cannot let our money flow ficiently depleted to endanger the con the interests of the workers and is into the pockets of those who will try tinuance of life on the planet. (Ozone applied toward meeting our most again, as soon as they can, to crush the absorbs the more lethal forms of ultra pressing needs — housing, better sani working class. But without consulting the violet radiation from the sun.) majority of the workers, the Intersindicai The Pentagon admits, however, that the tary conditions, doctors and medicine, [the trade-union federation controlled by ozone layer over the temperate regions transport, etc. Therefore, we are call the Communist party] has adopted a res of earth could be reduced by 50 to 75 ing on the government to keep an olution in support of the working Sunday! percent, to approximately the level that account of the value produced on this Intersindical's decision was made in an now prevails over the tropical regions. day and make sure that it is undemocratic way. However, it is a fact It was not reported how the reduction distributed to those most in need. that the majority of the working people would affect the tropical regions.

Intercontinental Press