*----------------------------------------------------------* | | | x x x x x x x xx xxx xxx xxx | | xx xx x xx xx xx x x x x x x Issue #7 | | x x x x x x x x xx x x x xx xxx | | x x x x x x x x x x x x 12/03/84 | | x x x x x x x xx x xxx xxx | | | |----------------------------------------------------------| | Newspaper of the Maoist Internationalist Movement | *----------------------------------------------------------* SOVIETS MATCH U.S. DRIVE FOR WWIII The Soviet Union announced on November 27th that it would match the United States' militarist strategy by increasing its military spending 12% for 1985. The Soviets said they "will not allow the military-strategic equilibrium to be upset." (Chicago Tribune, 11/28/84, 1) The only parallels for U.S. and Soviet military spending this century are prior to World War I and II. Once again the Soviet Union demonstrates its view of "detente" with the U.S.. This sick "equilibrium" is the steady build up for World War III. Under the guise of deterring the opponent both sides build up for war. The only question that remains is when one side becomes so threatened by the other's build up that it starts a pre-emptive strike and WWIII. (For the dangers of the arms race and the causes of militarism see the MIM literature list.) U.S. imperialism and Soviet social-imperialism are proving themselves to be inexorably headed for WWIII. No weapons can deter them. Indeed, the two economies thrive on sales of weapons to allies and the Third World. The military has become the pervasive and dominant portion of both economies. Inanimate objects can not "keep the peace." Only a revolutionary change in social relations can prevent the profit-driven collision of empires. CHILE ROCKED BY PROTEST AMIDST CLAMPDOWN Even as the Chilean military rounded up thousands of people for detention, exile and probable murder, 13 bombs exploded in the capital of Chile--Santiago. Public transportation was stopped by protests; women shouted against the regime even as they were arrested; wives banged pots in traditional protest; newspapers were boycotted and calls were made for a stay at home strike. (Chicago Tribune, 11/28/84) Already the Reagan Administration fears "'another Nicaragua.'" The U.S. has criticized Pinochet for not managing his affairs with the proper smoothness. He has alienated even bourgeois conservative forces with "his excessive use of force." With the usual paternalism the U.S. State Department played its God role in Latin America: "'We want them to take some constructive steps to help themselves before it is too late for us to help them.'" (New York Times, 12/2/84) AFL-CIO BUREAUCRATS LEND LABOR'S NAME TO OCCUPATION OF GRENADA The Republican Institute contributed $20,000 to election campaigning in Grenada. The American Institute for Free Labor Development also put in "'$6,000 to 7,000." The Free Trade Union Institute has allocated more than $80,000 to the "central labor movement" in Grenada to train the people of Grenada in its future as U.S. neo-colony. This activity helps the U.S. government to coopt the laborers of Grenada. It is no secret that the U.S. has sent psychological manipulation teams to Grenada to manufacture a political atmosphere favorable to the election and maintenance of a U.S. puppet regime. The U.S.'s implicit endorsement went to the New National Party as "'more moderate than any group so far.'" (New York Times, 12/2/84) Not surprisingly, the U.S. manufactured a "landslide victory" in the election. U.S. dominance of Grenada is so important as an example to the world that the U.S. has spent over $51 million in "assistance" to Grenada. That includes $19 million for Grenada's airport--now that its in U.S. hands, $4.4 million of Agency for International Development money for a mental hospital to replace the one the U.S. bombed in the invasion and $2.5 million to train management in its job controlling labor. Canada chipped in with $5 million for a cocoa program and the European Development Bank has loaned $2.5 million for electric generators. (San Francisco Chronicle, 10/31/84, p. C5) The U.S. invasion has cleared the way for a massive export of capital from the U.S. imperialist bloc to its new hostage--Grenada. ISRAELIS BOMB PALESTINIANS Israeli planes bombed supposed Palestinian bases killing five Palestinians and two Lebanese in the Bekaa Valley. (Chicago Tribune, 11/28/84) The Bekaa valley is held by the Syrians and their factional allies of the PLO. The Soviets man anti-aircraft missile batteries there. The attack is also significant because it targeted the pro-Syrian PLO at the same time that the Western press has been rebuilding Arafat's image as the leader of the PLO. The PLO's National Council meeting supposedly gave Arafat a decisive victory over pro-Syrian PLO factions. As usual another year of Israeli genocide against the Palestinians was rewarded by Washington. Israel, the largest recipient of foreign aid receives about 27% of U.S. foreign aid or approximately $900 per person. For fiscal 1985 the U.S. has already plunked down $1.2 billion. A total of at least $2.6 billion is due. (Christian Science Monitor, 12/3/84, 8) U.S. SINKS CLAWS INTO CHINA Since 1979, the U.S. has made $8 billion in direct investments in the People's Republic of China. This is $2 billion more than China planned according to Beijing Review boasts. (Beijing Review, 11/19/84, 9) RECORD NUMBER OF U.S. BANKS IN TROUBLE: NEED WAR FOR BUSINESS Despite a two year upturn in the economy, 797 banks require government supervision. The number was only 385 in the 1973-75 recession. (New York Times, 10/20/84, 19) The federal government recently forced two major banks-- Bank of America and First National of Chicago to recall some loans and adopt tougher loan policies. The fact that this was done publicly scares some bankers who are "'worried about the public's perception of the seriousness of the problem.'" (New York Times, "Bankers Fear Effects of Regulators' Moves, 11/17/84) Although the bankers are afraid, they clearly have no constructive solutions themselves so they are all going along with government's pressure to make fewer loans. The bankers know that the U.S. government acts in their overall class interests. For instance, the U.S. government opened up China to U.S. credits and U.S. investments. Even now, on Reagan's trip to China he said "I'll go as a salesman, doing everything I can up to the point of putting a 'Buy America' sticker on my bag." This kind of business in the Third World is an excellent chance for the multinational corporations and the banks that do the financing to suck profits out of the Third World. The solvency of the U.S. bank system also prevents a massive Depression that would undermine the U.S. government. The banks and government need each other. That is why they cooperate in regulating each other. The banking practices hardest to regulate involve bank loans to Third World countries. Obviously, inside the U.S., banks have legal recourse when loans are not paid, but overseas it is not in the interest of U.S. multinational banks to let governments go bankrupt. Indeed, the U.S. banks have an interest in the economic well-being and political stability of the governments that they have made so many loans to. They are counting on the various Latin American governments, for instance. Ultimately the banks must count on the U.S. government to keep such countries in line through war and the promise of further loans to stay in the U.S. bloc and out of the Soviet bloc. They are so dependent on the profits off of foreign loans that they often do not expect to receive their money back on loans--only interest payments. Bank America, First Chicago, Continental Illinois, Citicorp, Chemical, Chase Manhattan, Manufacturers Hanover, Morgan Guaranty and Bankers Trust have loans out to Latin America totalling $54 billion. "That represents a disturbing 157% of the banks capital." (Time, 12/3/84, 59) Especially after the 1973 oil crisis, Third World countries were reeling economically. "Banks argue that their foreign loans were encouraged by officials at the U.S. Treasury and Federal Reserve. They feared that developing countries would become economically and politically unstable if credit was denied." (Ibid.) However, even increasing investments in the Third World are barely keeping the banking system afloat. 71 banks have failed in 1984 so far. That's the most since at least 1977. (Ibid., 48) These failures are actually part of the policy of the U.S. Government which is trying to weed out weak banks. Deregulation, however, has only worsened the competition amongst banks: "As they became free of much federal regulation, banks began engaging in suicidal price wars." (Ibid.) Such competition drives banks to make loans to foreign countries; even though this means implicit reliance on U.S. military force should repayment of loans not be forthcoming. One former vice-president remembers the day he and others decided not to make a loan to Denmark. "Next day, however, a competitor stepped in to make the loan." "'Within several months,'" "'the resistance of my banking colleagues to sovereign lending gave way.'" (Ibid., 49) The U.S. government is becoming all the more desperate to find new sources of profits for U.S. business. The biggest untapped source is the Soviet bloc. The banking system problems compel the U.S. to go to war to open up and take away part of the Soviet bloc for U.S. business. YALE DIVESTS FROM THREE FIRMS IN SOUTH AFRICA Yale University was forced to divest $4.1 million worth of stock in U.S. companies that operate in apartheid South Africa. The three companies Fruehauf International Ltd., Black & Decker Manufacturing Co. and Amdahl refused to even describe what they were doing in South Africa. They even refused to sign the Sullivan Principles, which are a figleaf set of guidelines that certify that a U.S. company does not segregate its facilities and discriminate in salaries. (See MIM lit. list on South Africa.) The ivory-tower has been rocked for the last year by the actions of thousands of students protesting Yale's investment in apartheid. That turmoil also broke out amongst kitchen workers this fall. A strike by kitchen workers has left Yale without food services. Undoubtedly Yale officials fear the joint worker-student action that was so effective in shutting down universities in the 60s. SAN FRANCISCO ANTI-INTERVENTION RALLY ATTACKED BY POLICE Over twenty people were arrested during a demonstration on November 8th against Secretary of Defense Caspar Weinberger to protest U.S. imperialism's plan to invade Central America. The pigs even attacked camera crews from the major television stations. One cameraman said, "it was frightening." But how else can the agents of the ruling class cover up their actions and satisfy their masters who are trying to escalate their war in Central America? In their escalating war by proxy with the Soviet social- imperialists, U.S. reactionaries have no choice but to stifle dissent. Like the "Clash" says, anybody who thinks there is "freedom of speech" in this country should "actually try it." Progressive people in the anti- intervention movement should unite to work against U.S. involvement and war in the whole world because we can not solve the problem of U.S. imperialism in Central America without overthrowing the pigs and their masters. ANN ARBOR YOUTH STAGE RUNNING DIE-IN AGAINST NUCLEAR WAR Ann Arbor, MI--What started as a run-of-the-mill die-in turned into an advanced action against nuclear war on Wednesday, November 21st. High school and college youth, including a contingent of punks marched around the University of Michigan chanting "1, 2, 3, 4 We Don't Want Your Fucking War!" Later when police tried to break up the die-in at a traffic intersection the rejoinder "5, 6, 7, 8 We Don't Want Your Fascist State!" was added. The Peaceniks in the crowd sang "Give Peace a Chance," but when the police pulled out their clubs the demonstration ran from intersection to intersection in Ann Arbor disrupting traffic and chanting the whole way. The faster the three police chased the faster the youth disrupted traffic and spread their message "Hell No, We Won't Glow!" So although the group had the 60s idealism of the chant "Make Love, Not War!," it also had the savvy to run from police rather than turning the other cheek to be clubbed. Still, police singled out a major organizer of the event for arrest. Even then, the crowd was advanced enough to surround the police and shout "Let Him Go!" in unison. The police were clearly afraid they had provoked a violent demonstration, but there was no violence and police scurried out of the situation and made their arrest. They arrested one other later. 150 participated in the strongest part of the running march through the streets of Ann Arbor. 35 copies of MIM NOTES no. 6 on the war in Nicaragua were sold to bystanders and participants. The RCP, its youth group the RCYB and its sympathizers also played a strong and positive role in explaining why to run from police and the seriousness of the situation in Nicaragua. (For criticisms of the RCP, see the MIM lit. list.) WHY THE U.S. IS ESCALATING FROM "SECRET" WAR TO OPEN WAR AGAINST NICARAGUA--EDITORIAL The U.S. has made plans to bomb; quarantine and or invade Nicaragua in the first place to counter the Soviet social- imperialists' "interests" in Central and Latin America. The pro-Soviet and pro-Cuban elements of the Sandinista government are a direct threat to U.S. control in its "backyard." Several U.S. companies still make super-profits in Nicaragua. They are in "unfriendly" territory and aware of the threat posed to them. Bank of America, Texaco, IBM, Quaker, Monsanto, Nabisco, Colgate-Palmolive and Chevron all have immediate interests in Nicaragua. A San Francisco radio station also announced that Bechtel Corporation (the Reagan Cabinet) has had plans in the works since 1976 to build a canal through Nicaragua to replace the outmoded Panama Canal. Central America is really oil in the U.S. war machine. It provided the machine an easy victory in Grenada. Nicaragua, should it be invaded has a population about one twentieth that of Vietnam. Thus Central America is like practice in the "backyard" for U.S. imperialism. It is a chance to hypocritically complain about Soviet maneuvers for domination; to argue that U.S. economic interests are at stake; to whip up racist-colonialist sentiments against Third World peoples who supposedly need U.S. help in government. Above all it is a place to show that America can "stand tall" and "prevail"--meaning win and set an example to other Third World countries. The U.S. will try to straighten out its bloc as much as it can before going into direct and more intense war with Soviet social-imperialism. Another defeat in Central America would be a real blow to the U.S. imperialists' larger ambitions in Europe and the Mideast. However, we can not have the illusion that vigils, petitioning Congress and other reformist tactics will be enough to overcome an aggressor determined to redivide the world. Our strategy must have an international perspective. Only through solidarity with the people of the world and by challenging this whole system will we have the power to overcome imperialism and world war. _____________________________________________________________ THIS IS AN ELECTRONIC ISSUE OF MIM NOTES For the real thing, twelve to sixteen pages of tabloid newsprint, including revolutionary art and photos with professional lay-out, subscribe to MIM Notes now. Back- issues also available in original release for most issues. 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