—victor perio

PEOPLE VS. PROFITS
The gas shortage conspiracy

Yes. People’s suspicions are correct. The gasoline crunch is a corpo-
rate-government conspiracy, and here’s the evidence:

The new supply of oil to the United States during the first five montis of
1979 exceeded that of the same period of 1978 by 1.8%. A small decline in
domestic production of crude oil was more than offset by a substantial
increase in imports. This year’s new supply has exceeded last year’s every
month up to and during the first week of June, the latest week for which
figures are available. Stocks of crude oil are within 1% of the year-earlier
level.

During the first four months of the year, the increase in new supply
almost equalled the increase in consumption— 2%. Shipments of gasoline to

- the market increased 3.5%. So there was no need for any shortage. Thus the

local shortages, resulting in the gas lines — which began in California in

- April —had to be arranged. I do not know how it was done; but it was used to

spread panic and served as an excuse to arrange shortages in many places
in May and June.

The oil companies did this by cutting their May refining activity, and
especially their production of gasoline. They cut their shipments of gasoline.
to dealers by even more, 9.8% in comparison with May 1978. Nobody told the
companies to reduce their refining activity, but James Schlesinger, secre-
tary of the Department of Energy, made the situation worse by ordering
companies to change the product mix to increase distillate fuel oil at the

‘expense of gasoline. However, the companies only cut gasoline output with-
out increasing distillate.

Then Schlesinger and the Pentagon combined to create still more prob-
lems. The government continued to put substantial quantities of crude oil
into a special, extraordinary, unjustifiable military reserve; and the energy
department set up a system of allocations, as in wartime. It allocated 10% of
May’s actual gasoline output to priority users — the main ones being the
Pentagon and agriculture. In such a situation “priority’’ users always take
more than they really neéd. Then 5% of output was set aside for distribution
by state governments, as compared with 3% earlier. So more gasoline went
to local bureaucracies, to companies close to them, to favored dealers.

Next Schlesinger decreed extra shipments to dealers with a record of
sales growth. Many of these were stations selling unbranded gasoline which
had attracted customers by offering a few cents off the going price. Now,
with the aid of government, these stations, with their advantageous position,
have “‘pioneered”’ in dollar gas and such outrages as the $1.57 per gallon in
California and in sections of New York.

_ Aleading business report tells its readers that there is no evidence of a
real shortage, because crude oil inventories are higher than usual, and that
the apparent shortage of gasoline is caused by business firms and gasoline
stations storing unusual amounts in their facilities. (Exact quote not per-

~ mitted).

A Gulf Oil official claimed his cornpany was shipping 3% more gasoline
than a year ago in June, but because of energy department allocations,
dealers were getting 5% to 7% less than a year ago. On the other hand,
Schlesinger scolds the oil companies for cutting refining activity. They
blame each other — but with a wink. They’re both to blame. They have a
division of.labor for common ends.

The shortages are focused in metropolitan areas with heavy concen- .

trations of workers, of Black and-Hispanic peoples. Congress refuses to
authorize even a standby rationing system that might provide some degree
of equity.

The lack of order in distribution encourages all the petty meanness by
which some dealers sell gas to ‘‘favorite’’ customers only. All this increases
the general tension and deteriorating quality of life. What is the purpose?

The oil companies, by eliminating the last‘semblance of competition

-- and taking advantage of the absolute need of millions to obtain gasoline to
get to work and to shopping centers, have removed customary restraintson -

their profiteering. Many dealers are going all out also. And this is mainly at
the expense of workingclass purchasers.

The Administration collaborates with the oil monopolies partly. be-
cause of the intense interlocks between the oil companies and the govern-

- ment apparatus, because of the many senators and representatives behol-

den to the oil lobby. Schlesinger has just about abandoned all pretense of

. putting ceilings on gas prices.

_ But there is more to it. This cooked-up shortage is in accord with the
energy strategy of state monopoly capitalism. It aims to adapt to the
weakening grip of U:S. imperialism on the capitalist world’s oil reserves by
curtailing consumption at the expense of the working people and in ways
that increase monopoly profits. e

Since capitalism will not and cannot have an effective centralized plan,
this is achieved through crude blunderbuss methods, which arbitrarily cut

off supplies and so sharply raise prices that the poorest and most op- |

pressed sectors of the population will be unable to afford to purchase
gasoline to get to their jobs.

PACIFIC TRIBUNE—AUGUST 10, 1979—Page 4

By Karen Werner ©

and Carl Bloice

ULAN BATOR, MONGOLIA

This month the people of Mongolia will
celebrate their three-day holiday known
as the Nadom. On July 11, fireworks will
once again burst and fall across Sukhe
Bator Square in the capitol of Ulan
Bator. On that day 58 years will have
passed since the vietory of the people’s

_ revolution. :

Few people in the United States

know much about this important nation »

— sandwiclied between the Soviet Union
and China — past the 12th century when
Ghengis Khan, the great Khan of the
first united Mongol state, left a wide
mark on the pages of human history.
And few Americans know that this
North Central Asian country turned to
socialism, while bypassing capitalism.

_Mongolia’s struggle for liberation
spans centuries. In 1691 China’s Manchu
dynasty conquered Mongolia. During

this period the influx of imperialist capi- .

tal to Mongolia transformed the country
into..a semi-colonial state..The arats
(peasants) organized rebellions that
were anti-feudal and anti-Manchu in
character, and they spread throughout
the country. ©

The first Russian revolution in 1905
and the overthrow of the Manchurians

by the Chinese people in 1911 greatly.

influenced Mongolia’s national libera-
tion movement. In 1911 Mongolian

feudal lords came to power asaresultof .

the struggle and declared Mongolia’s
independence. _
Although this was a step forward, th
‘people were still victimized by foreign
and domestic, feudal oppression.
The Great October Revolution of 1917
was the turning point for the Mongolian
people. The Mongolians, like many
others around the world, rapidly ac-
cepted the liberating ideas of the revolu-
tion in Russia. The feudal lords, fearing
loss of their power, sought aid from
many imperialist powers. They invited
in Chinese military forces in 1918 and

shortly after Mongolia was declared a’

province of China.

' For the next three years, the
Chinese, Japanese and U.S. im-
perialists conspired against Mongolian
independence and against each other
for hegemony in the area. Prominent in
all the plotting and scheming were the
White Guard troops led by Baran Un-
gern, who had fled from the Russian re-
volution and hoped to use Mongolia as a

base for operations against the new -

soviet state.
_ At the same time, the Mongolian na-
tional liberatiom. movement gained

Strength. Out of it grew two illegal re-

volutionary organizations based in the
old capital, Urga. One was led by Sukhe

_ Bater, the other by Kh. Choibalsan, both

sons of arats. .
On June 20, 1920, the two groups

_ had thrown off the yoke of foreign a ;

united into the Mongolian Pe
Party. a
Discussions with Soviet leade
Lenin formed the basis for the di
of the Mongolian revolution and
vided for help from Soviet Russia
The first MPP Congress, he
March 1, 1921, directed the pari
wards the organization of an armé@
rising and a war of liberation f
tional independence. By July the
try’s capital was liberated un
command of Sukhe Bator. The po
the government was given to th
and a people’s government was
on July 11, 1921. By the end of
White Guards had been crushed;)
defeating the Japanese-Ungern f
control Mongolia. PY
In 1928, seven years after Moni”
nation and exploitation, there were?
300 industrial workers in th
country. By1940 that number had
to 18,000. Between 1971 and 1976
1,000 engineers and technicians?
nearly 8,000 skilled workers "©
graduated from the nation’s voca¥®
training schools for work in the”
struction industry alone. Standing #
such statistics are impressive, bl
hind these numbers lies the story}
dramatic historical developmen:
The Mongolian working class}.
quite literally grown with the m%y
Mongolianstate, and every year—
during the most difficult ones —
has industry become a larger poru?,
the national product, but there has
a commensurate improvement !")

is collective farmer has been a
medais in recognition of her outst