This is the first of a 3-part series
on foreign penetration of the
Canadian economy by Gerry van
Houten, researcher for the Com-
munist Party of Canada.

* * *

By GERRY VAN HOUTEN

Figures recently published by
Statistics Canada indicate that the
long-standing trend of foreign
takeover of the Canadian
economy is continuing unabated.
From 1972 to 1975, foreign direct
investment in Canada increased a
whopping 35% from $29.5-billion
to $39.8-billion. Furthermore,
foreign penetration of the Cana-
dian economy is accelerating. Be-
tween 1969 and 1972, foreign di-
rect investment in Canada has in-
creased a ‘‘mere’’ 21%. These
alarming facts auger ill for Cana-
dian working people whose jobs
and living standards are being
threatened even more.

American imperialism remains
the biggest owner of direct

Foreign penetration of
our economy accelerating

investment in Canada. American
capital owned 80.9% of all direct
investments held in Canada or
$32.2-billion. European multi-
nationals owned another $6.9-
billion in direct investments in
Canada (17.3% of the total) in
1975.

If we take into account the
investments which are controlled
by foreign capital in 1975, the
figures would swell to $56.9-
billion, up from the $42.3-billion
controlled by foreen capital in
1972.

_The Canadian economy is fal-
ling more and more under the-con-
trol of the foreign multi-nationals
whose first concern is how much
profit they can make at. the ex-
pense of the Canadian working
people. The consequences of
foreign, particularly American,
domination of the Canadian
economy are well-known and are
even recognized by some of the
kept press of the monopolies such
as the Toronto Star. Foreign

ownership of the economy means
that not only do foreign
monopolies enjoy the fruits of
exploiting Canada’s resources
and workers, but that the deci-
sions affecting the very livelihood
of the Canadian working class are
made outside of Canada’s borders
and beyond the apparent control
of even the federal government.

Foreign, particularly Ameri-
can, corporate decisions have
brought about plant closures and
layoffs. Such multi-nationals as
Falconbridge, General Electric
and U.S. Steel are continuing
their policy of laying off
thousands of workers in Canada
while expanding their operations
— or building new ones — in the
cheap wage areas of the United
States and the developing coun-
tries. Canadian workers have ab-
solutely no say in these profit-
motivated, unfeeling monopoly
policies.

The chief consequence of the
acceleration of the penetration of

Israeli Communist Party

protests

arrest of well-known journalist

TEL AVIV — The Israeli
Communist Party has protested
the arrest of Hans Lebrecht, a
member of its Central Commit-
tee, well-known journalist and
correspondent for L’Humanité,
L’Unita, Unsere Zeit, Neues
Deutchland and other newspap-
ers. Lebrecht is also secretary of
the Association of Anti-Hitler
Fighters and Victims of Nazism in
Israel.

The CPI charges that Leb-
recht’s arrest by Israeli police is
due to his articles favoring a just

and lasting peace between Israel
and the Arab states and his con-
demnation of Israeli occupation
of Arab lands.

“‘This arrest,’ says the CPI,
‘tis obviously revenge for Leb-
recht’s question asked at the Is-
mailia press conference of Sadat
and Begin when he inquired:
“How can peace be achieved
without the Palestinians and their
representatives, the PLO?’’

The CPI also charges that the
arrest of Cypriot journalist

Panayotis Paschalis while in Is-
rael covering the Sadat-Begin
talks was also motivated by Is-
rael’s dislike for his position on
what is required for a real Middle
East peace and his defence of
Palestinian rights.

‘“‘The official Israeli policy of
occupation is breeding threats to
democracy and dangers of fas-
cism, and infringing on the rights
of journalists and on the freedom
of the press,’’ the CPI statement
concludes.

foreign direct investment into the
Canadian economy is the acceler-
ation in the number of layoffs.
More and more workers are being
thrown out of work as foreign
control of the economy is
strengthened. In 1969, the official
unemployment rate was 4.7%; in
1972, it had increased to 6.3%.
Now the unemployment rate is
officially set at 8.5% although the
actual unemployment rate is
much higher.

These facts demonstrate the
utter falsity of the argument that
foreign, particularly American,
capital is needed to create jobs.
Foreign investment in Canada
does not create jobs; it destroys
them.

The irony is that Canada is
financing the sell-out of its own
economy. While foreign direct
investment increased by $8.2-
billion from 1971 to 1974 (the most
recent figures available), the
amount which actually came from
sources outside Canada
amounted to $1.9-billion. In other

| a / CHRYSLER

words, $6.3-billion, or 76.5% o
all the funds raised by foreigi
monopolies came from Canadiail
sources such as Canada’s ba
and the profits generated by thé
multi-nationals in Canada. :

In addition, Canada paid $3.
billion more in interest and dt
vidends than. it received from
foreign sources between 1971 an@
1974. During this same peril
payments to foreigners in thé
form of personal and institutio al
remittances exceeded receipts by
$100-million. In short, Canada
paid a total of $2-billion more t@
foreign capitalist interests than I!
received. from its own interest
abroad.

Gavass isnot only faancine
takeover of its own economy bul
it is even giving the forei
multi-nationals a handsome prom ‘
(in its various forms) as well.
constitutes a severe drain on thé
Canadian economy and _ places
Canada’s balance of intel
national payments on a fragilé
basis.

6

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CORPORATION

American imperialism remain

investments held in Canada.

e biggest owner sof direct investm
in Canada. In 1975, American capital owned over 80% of all di

SSS = KS

—

»-

Life and the neutron bomb

By ALFRED DEWHURST

SS @Ost oy FS mo ete ete on ono ts SY

n

The decision of the U.S. Govern-
ment to produce the neutron bomb and
to deploy it in Europe through the
agency of NATO represents a new at-
tempt toward a massive acceleration of
the already ruinous arms race. This is a
foregone conclusion, for equality of
security is the basis upon which world
peace rests.

To make it brutally clear, the U.S.
decision to go ahead with the neutron
bomb — which kills people but spares
property — is yet another attempt by
U.S. imperialism to achieve military
superiority for the United States over
the Soviet Union — the first land of
socialism. It is a calculated attempt to
change the balance of power in the
world under U.S. leadership, to
undermine the principle of equality of
security, and to return to cold war con-
frontations on the basis of nuclear
blackmail with all its danger to
humanity.

a * *

What about Canada in all of this?
Canada is a member of NATO and con-
sequently is bound by NATO deci-
sions. The NATO chiefs cooperate
fully with the aims of the U.S. military-
industrial complex. When the Pentagon
made it known that NATO was in ur-
gent need of rearmament that message
was heeded by the NATO countries, as

PACIFIC TRIBUNE—FEBRUARY 17, 1978—Page 1C

Marxism-Leninism in Today’s World

we well know by the enormous increase
in Canada’s military budget. That
budget currently stands at $3.4-billion
and will rise to $5-billion by 1980.

The Pentagon’s shopping list for the
NATO countries included: new and
modern aircraft, an overall improve-
ment and increase in armaments, new
generations of tanks, howitzers and
anti-aircraft guns. In addition it in-
cluded measures to ensure closer coop-
eration among NATO partners in stan-
dardizing weapons and in harmonizing
military conceptions of ground, air and
naval warfare. Last, but not least, the
NATO partners were told that the neut-
ron bomb was to be deployed by
NATO in Europe:

ee.

Make no mistake, our country is
deeply involved in this new attempt to
fuel up the arms race. And, most impor-
tant, make no mistake on this score: the

_ development of new types of weapons

of mass destruction and their means of
delivery, such as the cruise missile and
the Trident submarine by U.S. im-
perialism has created an intensely
dangerous situation, lengthening the
shadow of nuclear war across our
planet.

The assertion that the neutron weas-
pon system, falsely described as being
only a tactical weapon, will help to
“lovalize™ future wars, and will not
lead to large-scale nuclear war, is hog-
wash pure and simple.

The concept of ‘‘limited nuclear
war’’ is simply a screen erected by the
cold war warriors to hide the U.S. deci-
sion to once again escalate the arms
race that serves only to enrich the arms

makers, the multi-national corpora- —

tions and the money-lenders at the ex-
pense of working people’s living
standards.

, x * *

As of now there has been no public
evidence that the Canadian Govern-
ment has raised any objection to the
strategy of NATO as formed by U.S.
ruling circles and the Pentagon. In fact,
all public evidence points in the oppo-
site direction as already noted in terms
of the government’s military budget.
What has emerged in the recent period
is what the media describes as a “new
accord’’ between Canada and the
USA. Evidence of this ‘‘new accord”’
has been demonstrated by Prime Minis-
ter Trudeau’s official visits to the U.S.
since the Carter Administration took
office, the Alcan pipe-line deal, and

tion of a mass character. -

U.S. vice-president’ Mondale’s visit ‘0
Canada.

The foregoing serves to underlinil /
that only wide and vigorous protest call
make the Trudeau government revers?
its present position of going along wi j
the military strategy of the USA a
NATO.

* *  *

History calls out to us: if the world’s
stockpiles of arms are not defused
time, shooting is bound to begin.
peril is all the greater in view of tht
existence of forces blinded by gree®
and class hatred to the extent that the)
may risk precipitating a catantrony
war. Such a possibility makes a
struggle to end the arms race the sacré
duty of every individual who cherishes
life.

Pa

Ne ek
However, it needs to be emphasiz
over and over again that words alo!
cannot halt the production of neutrol
bombs or Cruise missiles. Words w!,
not stop the stockpiling and spread 7 o
nuclear weapons. It will take action ~
vigorous, militant and determined a7

A country-wide campaign to Stop
Neutron Bomb can be the lever to spa
a truly mass campaign for general 2
universal disarmament with securill
for all countries large and small.

Aix