MAJOR DEFICIT SHOCK

A CRUSHING trade deficit ernment yesterday—proving out increasingly in the interr a sharp, new attack on the class.

Figures released by the Department of Trade and Industry showed that rising world prices and the falling value of the pound had produced a £197m visible trade deficit last month.

This was much higher than forecast and put the British economy well on the way to an unbearable £1,500m-£2,000m deficit this year.

The figures show that imports last month soared to a record £1,071m—the first time ever that they have topped the £1,000m mark. At the same time exports slumped.

Imports were up £94m on the previous month while exports, at £874m, were £26m down.

These extremely bad figures, which should have been published on local election day last week, mean that fresh attempts by the Tory government to make workers pay for capitalism's crisis must be imminent.

While fiercely curbing home demand for imported goods the Tories must urgently attempt to cheapen their exports by slashing the real wages of the working class and enforcing ruthless speed-up. was admitted by the Tory gov. that British capitalism is losing ational trade war and heralding living standard of the working THE POUND took a knock yesterday as dealers marked €100,000 it down on news worse-than-expected The new rate of 2.4816 was a drop of 18t points on the overnight dollar and over a quarter of a cent down on the spot sterling rate before the trade figures were pub- BUILDING lished.

Bankers said the news brought a dull foreign exchange market to itte, although the pound's fall was FUND not as bad as expected.

A further drop is Ilkely when the New York market staris to trade.

But the figures than that.

They prove, as Workers Press warned • yesterday, that British capitalism is on its League. back and feeling the sharpest effects of the inflationary crisis which is sweeping the capitalist world.

This must bring enormous pressure on the pound and demands from the international bankers for rapid deflation.

Party Building Fund Such a deflation would to a hugh rise in unemploy- 186a Clapham High Street ment, swingeing cuts In London SW4 7UG social services, and continued, but even more TURN TO BACK PAGE ON THE DOT came the cheque for £2,000 from reader S.L. to double our fund together with £1 from Coventry and £1 from Holloway branch of the Socialist Labour The fund now stands at {4,103.78. We are a long, long way from completing the first leg of the £50,000 needed by May 31.

Can we have another big push over Easter? Post all donations to: editor Alex Mitchell is in Japan for three weeks col lecting material on the crisis -both economic and political-in the Far East.

His investigation will cover Industry, the unions, the Japanese Stalinist movement, the revolutionary forces and • the military-an ever more powerful voice in Welsh, steelworkers yesterday lobbied the first Iron and Steel Confederation congress since World War Il at Congress House, London, yesterday. See back page. Japanese ruling circles.

These articles will be of vital Importance for trade unionists everywhere. They will analyse in depth the wages and working conditions of the Japanese and draw a comparison with the British scene.

DO NOT THIS VITAL SERIES.