Since our last Central Committee meeting a number of developments have taken shape which require our further consideration. On the home front the situation is marked by continued inflation and a growing recessionary trend. The agri- cultural crisis is becoming more acute. United States imperialist pressures on Canada continue to mount. On the international front the ex- tension of U.S. imperialist aggression in Indochina and-the sharpening situ- ation in the Middle East where the cease-fire has been replaced by unde- clared war, has further aggravated the international situation and threatens world peace. New tasks and responsibilities face our Party in this sharpening situation, a situation which mirrors the growing economic, political and social crisis in Canada. ECONOMIC SITUATION WORSENS The . economic situation remains uncertain. Some call the present downturn a mini recession others a full recession, still others call it a depression. Mr. Galbraith and some other economists already speak and write as if another 1929 is in the offing. Whether this is so or not, what is evident is that the U.S. economy is in recession, with continued inflation, a downward slump in production and rising unemployment. Events in Canada parallel economic developments in the U.S.A., in fact are directly influenced by them, arising from Canada’s close economic ties with the U.S.A. Industrial production has declined. Retail sales are down. Unemployment is higher than in the U.S.A., with 6.7% of. the labor force out of work. If to this figure is added the over half million young people who will be looking for work shortly,-as well as hidden’ unemployment, the total unemployed may shortly embrace over one million of the labor force. Canada today has the dubious dis- tinction of having more unemployment than any other advanced capitalist country. The present economic decline in Canada arises not only from govern- ment policy; it is also a consequence of U.S. policy and is aggravated by it. Indeed, the deeper the recession in the U.S.A., the more the pressures mount to export it to Canada and to place it SUCTTTTEEEEEEE EE e SUPPORT POSTAL WORKERS The Communist Party of Canada’s Central Committee, meeting in Toronto, demands that the federal government reverse its position and grant the justified demands of the postal workers. : The Communist Party condemns the deliberate policy of procrastina- tion practiced by the Trudeau government in present negotiations with the postal unions. This policy finds expression in: failure to negotiate in good faith; creating a crisis of a protracted character in post office employee relations; and upsetting the postal service by its hard policy on bargain- ing for which the government alone is to blame. The refusal by the Treasury Board to even concede to proposals of its own appointed Conciliation Board chairman’s recommendations in- dicates beyond doubt that the delegates to the recent Canadian Labor Congress Convention in Edmonton, Alberta, were right when they charged that the federal government is using the postal employees dispute to establish wage guidelines for all civil servants. — This policy is, moreover calculated to prevail, if succesful, in forth- coming railway negotiations and in other negotiations in private industry. The Trudeau government is consciously and deliberatley siding with monopoly with respect to job security for workers while failing to act for’ implementation of recommendations made by the Friedman Report. The Communist Party of Canada pledges its undivided support to the postal employees and greets their heroic stand and patient efforts in face of all provocations. struggle. 4 Along with the wholehearted support, which is sure to grow amongst the working people of Canada, we pledge to do all within our power and ability to ensure victory for the postal employees in their just and valiant —Central Committee, Communist Party of Canada. MTEC EL PACIFIC TRIBUNE—FRIDAY, JUNE 12, 1970—Page 6 on the backs of the Canadian people, particularly on the working class. This is already to be seen in U.S. efforts to change the terms of the U.S.-Canadian Auto Pact with resultant unemploy- ment for Canadian auto workers. The Canadian working class is thus under dual pressure—from Canadian: mono- poly and from U.S. imperialism—to shoulder the brunt of the recession. This shows how illusory is the widely ‘propagated view of the benefits of close economic ties with the U.S.A. ~ The current decline or slowdown in economic growth in Canada is a deli- berately induced one. Unemployment is deliberately induced and so is the pre- sent recession. If the Government per- sists in its present course, “controlled” deflation may precipitate a crisis. This government policy of delibe- rately creating unemployment is based on the false notion that a mini-reces- sion will overcome inflation. However, as can be seen by rising prices, the Government’s policies have not stem- med inflation. Nor can they, as long as the Canadian economy is linked so closely to that of the U.S.A., and in- flation is fed by the U.S. war in Viet- nam, and now in Cambodia. Government policy however, has had no effect on inflation because of its re- fusal to touch monopoly profits and reduce Canada’s dependence on the U.S.A. Its main effort, and that of mo- nopoly, has been directed to halt the decline in the rate’ of profits through wage restraints, nationaliza- tion, modernization and concentration of industry, and through increased . speed up. Unemployment has become a weapon of government policy through which to keep up profits and improve monopoly’s competitive positions in the world market. REVALUATION OF CANADIAN DOLLAR The economic recession takes place on the background of a monetary crisis which again shows signs of erupting. The latest example of this is the reva- luation of the Canadian dollar, a reva- luation arising on one hand from Cana- da’s dependence and the U.S.A., and the insistance by the U.S. Government ‘on the other hand that the dollar be revalued in order to strengthen the U.S. dollar and ease its international balance of payments. The consequenc- es of revaluation will likely lead to in- creased unemployment and hardship Excerpts: from the Main Report % of the Central Committee of ° for many Canadians. The Nixon ad- venture in Cambodia will further ag- gravate the international balance of payments crisis, further stimulate in- flationary tendencies both in the U.S.A. and in Canada, and worsen the econo- mic situation. It is a measure of the uncertainty which exists, that the stock market rather than rallying as a con- sequence of the Cambodian adventure, has been as erratic as ever. What it could indicate is that war is not a stimulant to the capitalist eco- nomy as in the past, and that reserves of state monopoly capitalism, that is, its ability to manoeuvre, are being used up. What it does mirror is that capitalism is in crisis. State monopoly capitalism cannot ensure sustained economic growth, rising standards and stable prices. Neither can it ensure stability. In today’s conditions, infla- tion and deflation, the heating up and cooling .down of the economy, are in © reality expressions of the crisis and decay of capitalism, of its inability to satisfy the needs of the people. The “new” capitalism turns out to be like the “old” capitalism, an exploiting sys- tem. The various manoeuvres of state monopoly capitalism are unable to overcome the inherent instability of capitalism arising from the blind play of market forces and private owner- ship. E MOUNTING MONOPOLY OFFENSIVE The Government is trying to solve the mounting economic difficulties and contradictions inherent in the capital- ist system at the expense of the work- ing: people, the small farmers and small business. Previously, it used inflation to nullify wage gains, seen in the fact that the purchasing power of the dollar declined by 17 cents over the past three years. Government taxation poli- cy as well as rising rents performed the same function, of eroding purchas- ing power. Now the Government is using unem- ployment as a weapon to curb the wage movement while refusing to curb rising prices by democratic control over monopoly. Indeed, it has not only given the signal to monopoly to act tough as already seen in the long drawn out strikes and lockouts, all directed to impose wage restraints and some kind of incomes policy on the working class; it is setting the pace for mono- poly by its harsh attitude to the postal workers and other Federal employees, doing everything possible to set pub- lic opinion against the legitimate de- mands of these workers. As our Party warned, the Govern- ment has now gone further and _ in- tends to impose a 6% wage guideline on the workers and their unions. This is nothing else but a form of wage control directed to undermine collec- tive bargaining and the ability of the trade unions to protect the interests of their members. It is class legislation with a vengeance, leaving monopoly profits untouched while attacking liv- ing standards. The workers and their unions cannot but oppose it with all their organized and united power on the economic as well as on the politi- cal front. Our Party stands four-square with the workers in their just. fight. WORSENING OF WORKERS’ CONDITIONS This points up the truth of Marx- ism that the tendency towards worsen- ing conditions for working people con- tinues to operate under capitalism despite gains achieved by some sec- tions of the working class. ciety while perpetuating injustice must be curbed. “needed to raise living standa _ undertaken on ‘a large scale ‘left to either Canadian or U.S: 7 The Government is exposing itself more and more as the instrument monopoly. It talks about the Just >, pursuing economic and social poids directed against labor, the farmers ig working people generally. It @— about participatory democracy excludes the working people from i ing a real voice in determining €C° mic and social policy. The main Pit cipants in its democracy are the mu a national corporations and conglom rates which increasingly dominate fs Canadian economy and largely dey mine economic and social policy: Unless present governme reversed the present mini-re can turn into a major recession. economic.and social policies need 1 of vigorously opposed and the purden the crisis placed where it belongs : a e rich and the corporations wh0 the ri p aa infl the financial and banking the food combines, who are respon 0 for rising prices, and it is they ~~ Present recessionary and reaction ary government policies must be {n- placed by radically new policies. os deed only such radically new can protect the Canadian people © the consequences of the recess What is required is a policy of or mic expansion, of all-rounded ine pendent economic development. must include two way trade wit socialist and newly liberated ; tries as well as the easing of the tax reform. Decisive incre tackling ' gocl# substantial wage increases, by ing pension payments, by - poverty, expanding education, services and housing. “pind The fact is that Canada lags ee the overwhelming majority of + the loped countries for the portion © (), national income spent on socl# quirements. 2 PLIGHT OF THE UNEMPLOYE ee The Government by its polici@> ¢f cold-bloodedly throwing hundre0? ij¢ thousands of Canadians onty als streets. It sits on its hands while B®, a close down. It allows jobs to P& ported. In place of such polici€S | to ernment policy should be direct€™ the maximum utilization of ¢ tio” not sources of the country for the cre of new jobs. The creation of joD jy | unemployment, should be the prime of concern of Government policy: ity 9 most important resource the COMM ne |) possesses is the working clas | creater of wealth. Those who are employed must be provided work and/or retraining for suc There is a vast amount of unfin® jn business in our country. The cris! ned the cities must be tackled by par io % urban development, by a vast tive housing program and by © S measures of control over rents: — cational reform must be unde? including reform of the primary S© The level of educational sta! must be raised which in turn W! ‘ ther improve the quality of the 94 pe force. Research development sh0. out | mined. A long term policy 9 mic development under public nie is called for in Queebc, the Mat) and the Prairies. This task can” on”