Britain shocked at devaluation By JOHN WILLIAMSON LL BRITAIN is shocked at last week’s announcement - of the devaluation of the pound sterling, with its conse- quent increased prices, growth of unemployment, and lowering of living standards. The Sunday Telegraph recognizes “the con- sequences for the country are going to be unpleasant in the extreme.” The Observer hails the action of the right wing Labor govern- ment: as “a brave act” and warns against allowing “wages to shoot ahead” even though recognizing prices will increase. While the labor movement awaits the further news of what strings will be attached to the new 1.4 billion dollar loan to help “stabilize the pound” now being neogtiated, the struggle against the consequences of the _Labor government’s already existing policies mounts in in- tensity. The three latest examples of this are the reaction of M.P.s to the by-election results and subsequent Government support of a growing pool of unemploy- ed; the upheavel among coal miners against the deliberate run-down of the industry; and the election of left-wing Hugh Scanlon to the presidency of the second largest union—the Amal- gamated Engineers Union. Following the disaster of La- bor candidates in the recent by-elections, 46 Labor M.Ps. put down an amendment pressing for realistic alternatives to pre- sent economic policies. The main sponsor, Mr. James Dick- ens, said the by-election results show “the electorate is tired and exasperated” with “the pre- dominantly Tory policy” of the greatest reluctance, but “we feel strongly that the Government’s economic policies are gravely damaging to the country and the Party.” They went on to make suggestions for an alter-. native policy, including cuts in arms spending and export of ca- pital, control of imports, sale of foreign investment holdings to pay off debts to foreign bankers, and expansion of industry at home. No sooner was this over than Chancellor Callaghan created a new upheaval by blatently ad- mitting that the Governor of the Bank of England, Sir Leslie O’Brien, had stated Government policy correctly that Britain needed to have “a somewhat larger margin” of unused man- power and resources. Callaghan was supported by Wilson in a speech of unprecedented double- talk. Seventy MPs. immediately tabled a motion that “deplores and repudiates the approval” given by the Chancellor to the Bank of England’s advocacy of a larger permanent pool of un- employed. Clearly the Chancel- lors admission showed that Wilson’s speech at the Labor Party conference pledging full employment, was false. Answering the charge that the left is too “emotional” about unemployment, Morning Star editor George Matthews, wrote DECEMBER 8):1 967-+PACIFIC_ TRIBUNE2+Pogell@ 223. that he is “proud to plead guil- ty” to this charge and that “any- one who doesn’t feel emotions of anger” when men and women are thrown out of jobs and this policy is defended “ought not to be in the labor movement at all.” Referring to a famous say- ing of the late Aneurin Bevan describing Hugh Gaitskell as a “desiccated calculating mach- ine” Matthews writes that “be- side Jim Callaghan and Harold Wilson, Gaitskell is now begin- ning to look like a warmhearted and recklessly generous friend of the downtrodden.” e Already greatly concerned at the situation in the coal fields and having fears about a new Government policy to be an- nounced, the national leadership of the National Union of Mine- workers organized a march and protest meeting in London. From all the coalfields of Brit- ain delegations totalling 4,000 marched through -London’s streets, with all their national leaders in front—right, left and centre — with 1,000 placards reading “More Coal—No More Dole.” After lobbying Parliament 3,000 crowded into Central Hall, opposite the Houses of Parlia- ment. Present were 80 M.Ps. from mining constituencies. Both right wing president Sir Sidney Ford and Communist _Secretary Bill Paynter condemn- ed Government policy. Paynter declared we cannot let a vital industry be strangled. The policy we believe will be proposed “means social death to many mining communities” and then he warned Mr. Wilson, “There is a breaking point in the toler- ance and loyalty of everyone,” inferring this was also true of the miners. Within 48 hours, Lord Robens, chairman of the Coal Board, speaking before the introduction of the Government’s White Pa- per on Fuel, forecast that what would be proposed meant that by 1980, the number of miners would be reduced from the pre- sent 387,000 to 65,000. This meant jobs for only 1 in 6 of Britain’s présent miners. . All hell broke loose. The Min- ister for Fuel and Power claimed that Lord Robens was engaging in speculation and condemned him for creating alarm. But the White Paper, when issued, sub- stantiated this outlook. It went only as far as 1975, but called for a slashing of coal production and an “exodus of 35,000 men a year” from the industry up to 1971. NUM president), Sir Sidney Ford, criticized it, but Secretary Paynter said he regarded it “as a funeral dirge, written by a Labor Minister, for the coal mining industry” and called for its defeat. The Lancashire miners area secretary, Joe Gormley, and member of the Labor Party Na- tional Executive, talked about the trade unions organizing a new trade union party. Burnley (Lancs.) miners call- ed for a national strike. Many talked about and a few branches actually decided to stop pay- ment of the political levy to the Labor Party. : Scottish miners’ leaders called for a special national confer- ence, but took issue with the idea of a new trade union party or of withdrawal of the political levy. Everywhere there was red hot indignation and most min- ers’ M.Ps. are alarmed and must make a choice—fight together with their miner constituents against the Wilson policies or face the consequences. The election of Hugh Scanlon as president of the one and a quarter million-member Amalga- mated Engineers Union, is the most significant trade union election in recent years. Scanlon, a consistent left- winger polled 68,022 votes against John Boyd, well known right-winger who got 62,008. This was the highest number of votes ever cast in an AEU pre- sidential election. This ends the 11-year rule of Lord Carron, bitter right wing class collaborationist, knighted by both the Queen and the Pope in recent years. He is also a member of the Board of Govern- ors of the Bank of England. Scanlon, a former Communist who declares himself a left so- cialist, waged his campaign on fighting policies — against the Government prices and incomes policy, for full democracy in the AEU and in his election address said, “We must have loyalty at all times to the principles of trade unionism and socialism.” Asked what were the most important issues facing the uni- on, he emphasized (1) giving effect to the fight to reverse the present restraints on trade union rights, (2) to safeguard the internal democracy of the AEU and (3) to restore confidence and working relations between shop stewards and the union’s national leadership. His election can bring about a new balance of forces within the trade union movement, since the Transport and General Workers Union led by Frank Cousins—and the largest single union — is already committed against the main lines of policy of the Wilson Government. Editorially the Times says “Scanlon’s election . . . can rea- sonably cause the government as much concern as the swing of votes at by-elections” while the Daily Telegraph says it is “an embarrassment to the TUC” and even more “‘to the govern- ment and the Labor Party.” Last December, speaking at a Morning Star rally in his home town of Manchester, Scanlon dealt with the need to build a united left, in order to help bring about socialist policies for Britain. He also emphasized the role of the Morning Star. Among other recent signifi- cant activities was the 3,000- strong lobby of Parliament by representatives of local tenants organizations in opposition to rent increases. North of the border, the Scottish Nationalist Party candidate, Mrs. Ewing, won the Hamilton (near Glas- gow) by-election in an unpre- cedented swing of votes. They now announce their intention to contest every Scottish seat at the next general election, with their key demand of “complete independence” for Scotland. Bert Whyte 7 | MOSCOW Struggle in China more acute By BERT WHYTE MOSCOW VERY day Soviet newspa- pers carry accounts of the “power struggle” in China and give detailed information on the tragic events in that unhap- py country. The Mao Tse-tung group has tried to intimidate foreign cor- respondents in Peking into sil- ence by methods of expulsion and terror. Some newsmen have been beaten up and had their cars smashed by hungweipings. Three Soviet and three Japanese “correspondents were expelled. The Reuter correspondent has been under house arrest for months. Peking authorities re- fused to extend the visa of Bo- gunonvich, top reporter for the Tanjug Agency. Although reduced to a bare handful, foreign corresopndents in Peking continue to report the true developments, enabling Sinologists to draw accurate conclusions on the real state of affairs in China. Writing in Izvestia, two Soviet legal experts in international law cite various incidents over the past few months in which China violated the principle of immunity of diplomats and of the inviolability of premises of diplomatic representatives. In addition to actions against the Soviet embassy and its staff, the articles note, “in 1967 gross violations of diplomatic privile- ges and immunity were perpe- trated against the staff and em- bassies of Bulgaria, Hungary Yugoslavia, Mongolia, India, In- donesia, Burma, France and Bri- tain.” Details of these outrages have been reported in the world press: the beating up of Indian, Soviet, British and Indonesian diplomats by Red Guards; the setting on fire of the British embassy and the raid on the Mongolian em- bassy. The Izvestia article notes that the position taken by the Mao group — that diplomatic immu- nity is a survival of bourgeois institutions—is an outright vio- lation of generally recognized standards of international law, “manifestation of great power chauvinism, an attempt at exert- ing pressure on talking with foreign states from positions of strength, which has nothing in common with international law.” An aarticle in Literaturnaya Gazeta says that “the Maoists have been led to the adventurist path by their eagerness to enter the world arena as a world power dictating its will to other na- tions. The adventurism of the Maoists has plunged China into grave and lasting economic and political crisis.” The -article, titled The Big Leap Backwards, outlines Chi- nese economic successes in the early years, backed by the giant power of the USSR. “For many years a complete army of Soviet specialists—more than ten sand of them—worked 1? helping to build factorie, mobile, tractor and ene je plants, power station ie stations, Bes | it mines, brid mous Yangtse Bridge) "ug In 1958 Mao made Ii ij lution” under the sl0B2” gal three red banners — 4, ae) line, great leap forward a 8 try and the people’s Tracing the disastrous | gl ments which followed: 1 says: “the big leap, pit China astray from th planned development anarchy. : fag 4 The sharp decline ° ill ture automatically 418° id with it light industry, 4 its. turn, boomerange” ol agriculture. 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