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_A Canadian boycott
of American goods?

A United States professor of economics puts

forward a thought-provoking plan which, he

argues, could stop the war in Vietnam as well

as advance the cause of Canadian independence.

OST Canadians, whether
they realize it or not, are
helping the United States

wage its war against the people
of Vietnam. Through their pur-
chases of U.S. goods, they are
giving the U.S. economic aid.
Without this aid, the U.S. would
be confronted with a major eco-
nomic crisis.

Despite its immense resourc-
es, the U.S. is in a highly vul-
nerable position. With the ex-
ception of 1957, the U.S. has had
-a persistent deficit in its inter-
national balance of payments in
every year since 1950. This de-
ficit, caused essentially by U.S.
military expenditures abroad,
has reduced the U.S. gold stock
from $24.6 million in 1949 to
$13.5 billion in June, 1966. Be-
tween the end of 1964, shortly
before President Johnson in-
creased the scale of U.S. aggres-
sion, and the end of June, 1966,
the U.S. lost $2 billion in gold.
The Vietnam hostilities hence
have stepped up the gold out-
flow.

In addition, the supply of
dollars in the hands of foreign-
ers has jumped about $1 billion
between December, 1964 and

Japanese
seek boycott

of U.S. goods

An American-Japanese meet-
ing which was held in Tokyo
last August under the auspices
of the Japanese “Peace for Viet-
nam Committee” decided to
promote a boycott of selected
goods from the United States.

The International Confedera-
tion for Disarmament and Peace
is informing all of its affiliates
of this decision of the Two Na-
tion Conference in Tokyo.

The ICDP is pointing out that
such a selected boycott of U.S.
goods is meant as a psychologi-
cal means for mobilizing public
opinion rather than as an instru-
ment of economic pressure.

November 4, 1966—PACIFIC TRIBUNE—Page 10

1965
‘Total 23,475
To Canada 5,474
% Canadian 23.3

government aid programs.

| RELATION OF U.S, MERCHANDISE
EXPORTS TO CANADA TO TOTAL
U.S. MERCHANDISE EXPORTS

$ (U.S.) MILLIONS

NOTE: The above figures do not include military ex-
ports and all non-military exports financed by the U.S.

(Source: U.S. Department of Commerce, SuRVEY OF
CURRENT BUSINESS, June 1966, pp. 25, 32, 33, 37.)

1964 Increase
22,576 899
4,784 690.
21.2 16.8

May, 1966. At the end of May,
U.S. banks reported that for-
eigners owned $29.7 billions of
U.S. currency.

Under present international
financial arrangements, the U.S.
Treasury is obligated to surren-
der gold for these dollars if cen-
tral banks or governments of
foreign countries request the
gold. Though central banks or
governments do not own all
these dollars — they own ap-
proximately $12 billion — they
would have relatively little dif-
ficulty in obtaining these dollars
from their owners. Hence, the
U.S. is faced with the possibil-

ity that foreigners may demand _:

$29.7 billions of gold but it will

ance the Vietnam war without
raising their balance of pay-
ments deficit. Edwin Dale, New
York Time’s economic analyst,
recently wrote that the war was
costing the U.S. $750 million in
foreign exchange. Increased ex-

be able to provide them with ~ “

only $13.5 billion.

Foreigners, however, are un-
likely to demand gold as long as
they have confidence in the sta-
bility of the dollar. But if the
gold outflow continues and
dollars pile up in foreigners
hands, they will lose confidence
and take out gold. Even the
U.S.’s staunchest ally in Europe,
West Germany, has been quietly
converting its dollar holdings
into gold out of fear that the
U.S. will devalue the dollar. If
this fear spreads, there will be
a run on the dollar, which could
have disastrous consequences
for U.S. capitalism.

The U.S. leaders are well
aware of the seriousness of the
situation. They hope to avoid
this ‘disaster by increasing ex-
ports. Through an increase in
exports they will earn the for-

_ eign exchange necessary to fin-

Rev G. V. Kimball and a young Portuguese Canadian last week fled a group of Toronto pick
in front of the Portuguese consulate to demand amnesty for Portuguese prisoners. An eyewitness réP
on Portugal's police state and the mounting terror against those who dare oppose Salazar’s 40-y¢@ ‘
dictatorship will be given by two Canadian MP’s at a public meeting Friday, Oct. 28 at 8 p.m. in 10”
tonto’s Carpenter Hall, 169 Gerrard St. E. The meeting will be followed by a two-day conference.

ports could offset these losses.
In 1965, the U.S. increased its
private commercial exports, i.e.,
exports not financed by the U.S.
government, by approximately
$900 million. Most of this in-
crease went to Canada, which
raised its purchase of U.S.
goods by approximately $700
million (see table below).

Canada, more than any other
nation, helped the U.S. finance
the increased foreign exchange
costs of the U.S. war.

The U.S. is looking for in-
creased exports to Canada in
1966. To accomplish this, it is
using its American subsidiaries
in this country. In December,
1965, Secretary of Commerce
John T. Connor instructed U.S.
companies with subsidiaries in
Canada “to continue efforts to
expand exports to Canada.” The
most feasible way to increase
such exports is to cut back pur-
chases in Canada, a point that
should not be lost on Canadians.

Demand amnesty for Portugal prisoners

A more recent article, in ®
U.S. Department of Commer¢é
publication, looks to a “resump’
tion in the upward trend of ship
ments to Canada in view of thé

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continued expansion of the Can-

adian economy.” The U.S. i$
thus expecting Canada to help

it solve the foreign exchange
problems caused by the Viel

nam war.

Canada, after all, is its best”
customer. In 1965, Canadians —

bought $5.5 billions of U.S. met

chandise, far more than any
other country in the world. Can
ada, by itself, took 23 percent
of all merchandise exports.
(See table). A drop in exports 0
this country (or even a failure
of exports to rise) could inflict

serious damage on the U.S. bak

ance-of-payments and increas?
the threat of a run on the dollat:

For this reason, the Canadiat
people can make a signal cone
tribution to thé cause of world
peace by conducting an orga
ized boycott of U.S. goods. Thé
organization of such a boycott
could inspire peace groups |
other important U.S. markets,
like Great Britain and Japan, ©
take similar action. And becaus®
of the weakness of the U.
dollar, the boycott could be ef-
fective. It would present thé
U.S. leaders with a major eco
omic and political crisis.

Aside from aiding the caus?
of world peace, such a poycot
may also correspond to the SP®&
cific national interests of ©4 f
ada. A total of 70 percent 0
Canada’s merchandise imports
come from the United State’
The U.S. is the only countly
with which Canada has a lareé
trade deficit. It might well be ®

Cane

Canada’s interests to redirecy —

its purchases to countries Wi -
which it has _ surpluses, Jike
Great Britain, Japan, Belgivi™
Holland and the socialist coum
tries. By increasing imports
from these areas, Canada ©4?
end its lopsided dependence
the U.S..war economy. An oF
ganized boycott of U.S. goods
could spur such a redirection ©
trade.

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