Unstable exchange rates worry OECD

IN A confidential working paper which came to light earlier this week the Organization for Economic Co - operation and Development warns that the spread of trade and market controls will soon begin to have a serious effect on world trade.

The OECD staff, to judge from the paper, are worried chiefly about the lack of stability in exchange rates (most of which are floating) and about what will result from further falls in the dollar parity.

They hope that the US currency will become stabilized at a particular parity until markets and businessmen are convinced that the US deficit on international trade and payments will be turned round.

Many economists are convinced that this has already taken place, but there is no sign of any halt in the dollar's slide against other currencies, the OECD says.

In fact the US Labour's fake policy on

ROYSTON BULL

THE LABOUR PARTY's proposals for nationalizing the shipbuilding industry solve nothing.

As well as the failure to demand a take-over without compensation and under workers' control, the reformist nature of the plan is shown in the enormous concession made to Marathon, the oilrig building Texas-based company which took over the old Clydebank yard from the bankrupt UCS.

A National Shipbuilding Corporation would 'acquire, by use of powers of compulsory acquisition, control of all significant companies in the shipbuilding, ship-repair, and marine engineering industries-control normally to mean 100 per cent ownership of equity.

'Marathon would be seen as a special case to be discussed and dealt with separately.' Anthony Wedgwood Benn, presenting the NEC proposals on Wednesday, claimed that the workers at Clydebank had participated directly in the negotiations for the Marathon takeover and this clause merely recognized a historical fact.

He denied that 'separately' meant Marathon would not be nationalized, denied that the clause was a sop to Dan McGarvey who had touted for the Houston financial operator Wayne Harbin to take over the yard, and claimed the Clydebank men had backed • what their union leaders had done.

SPENCER continue to decline so long as the dollar remains inconvertible with gold at the official' price ($42 an ounce) and the free market gold price keeps on rising.

According to the OECD paper, however, the main dangers were: • UNCERTAINTIES may push exchange rates so far out of line as to touch off la self-renewing process of over-correction of rates' , and this over-correction, resulting from-so-called market forces could lead to further contradictory effects, which in turn would give rise to further overcorrection. The operation of this contradiction could, according to the OECD theorists, reduce the dollar's value to zero. • IF RATES are pushed too far away from what the country considers appropriate, there could be an excessive use of controls either through restric. tions on acquisition of foreign exchange or by protectionist trade measures which would inhibit the flow of capital, goods and even people between countries once they began to spread. • CURRENCIES that have been 'type-cast' on the basis of past 'All the shipyards-except Marathon' What does the Communist Party Wedgwood Benn (left)? James Clyde shop steward, was in on t next to Marathon chief Wayne Hal But despite Benn's denials, the position remains a farcical one. Firstly, it is unrealistic to imagine that the Clydebank workers will be willing to remain working for a speculative capitalist, who has driven some very hard bargains at Marathon in taking advantage of the bankruptcy situation, when the rest of the industry is taken over tor public ownership.

Secondly, the powerful British capitalist groups like Swan Hunter would treat with contempt nationalization proposals which left out one section of the industry just because the absentee American owner was likely to kick up a fuss.

The fatuous concession to the union leaders' "sensitiveness' over the agreements they signed with Harbin show • that the reformists have failed to grasp anything of the crisis.

The argument for nationalization will arise out of the actual failure of capitalist industry to do little more than stagger uncertainly on, surrounded by bankruptcies, unemployment and experience as 'devaluation prone' (such as sterling) or 'revaluation prone' (such as the German mark) will be pushed too far simply because past experience and memories will continue to influence markets and businessThere are already signs that this is happening, according to the OECD. For instance, West Germany's tight restrictions on money supply to create deflation at home have been responsible to some extent for the slump in the parity of the dollar over recent weeks.

The OECD paper, in this connection, says: 'uncertainty about governments' ability to bring inflation and the present boom under control could interact and be compounded by uncertainty about governments' ability to maintain an orderly and rational pattern [sic] of exchange rates and avoid a self-defeating escalation of controls'.

Self-defeating this may be, but incanting about it won't stop it happening.

As the paper rightly says, it has already started, giving the OECD report the unmistakable air of drawing attention to the open door of the stable after the horse has bolted. think of the special treatment for Marathon, as suggested by limitony Reid (above left), Communist Party executive committee member and e deal with the bollermakers' Dan McGarvey (above right), who is seated sin. recession, when the inflationary crisis finally slumps into hard deflation.

It will not be a question of improving the 'technical, financial, and marketing performance' of private shipbuilding which is 'insufficient to meet the demands of a highly volatile international market', ', as the document puts it, but a question of rescuing the whole productive forces of mankind from the degeneration the capitalist crisis will inflict.

The fight, which is already developing, will be on the very broadest class basis.

Which way forward? To continue the stagnation and sickness of declining capitalism, or to wipe out the whole private ownership system in finance and major industries and plan the economy on socialist lines?

The special considerations of the Harbins and the McGarveys will be of little consequence in the solution of the principle conflict.

Granting them now. shows that Benn and the 'left' Labourites haven't begun to face up to THE TORIES' new butter okens to be issued to people n supplementary benefit would serve as public labels advertising family poverty, a Labour MP said in the House Soya bean export embargo means dearer food THE UNITED STATES government has placed a r ban on all exports of soya beans in a move which is push world food prices to new record levels.

Cotton seed and related products used throughout the world to feed livestock were included in the embargo and there were immediate fears that the export restrictions would be extended to cover maize. the essence of the question of nationalization, which is the struggle for political power.

And where do the Stalinists stand on this all-important quesThey too were party to the settlement with Harbin through their control of the local shop stewards under Reid and Airlie and their influence on the Confederation of Shipbuilding and Engineering Unions.

The 'Morning Star' reported the special case treatment for Marathon without comment.

to publish a statement from the Communist Party on their intentions towards Harbin's business.

Are they in favour of nationalizing Marathon without Workers everywhere, and particularly on the Clyde, will demand to know whether Reid's involvement with Harbin means that the Communist. Party, on whose executive Reid sits, is also prepared to make Marathon a 'special case'.

Two-month certain to The US is the biggest ducer of soya beans in capitalist world. There immediate reaction to the from Japanese officials, who it would have grave effects.

Emergency measures might have to be introduced and all possible alternative sources of supply were being tapped, Tokyo said.

Soya beans have been in short supply for some time and a world-wide protein shortage, poor spring-planting weather and the decline of the dollar have produced record US prices.

There has been frenetic speculation on the Chicago commodity exchange in soya bean futures and the price has risen by leaps and bounds.

On April 24, the Department of Agriculture reported that stocks soya beans were abnormally low.

There was an immediate rush to buy options on the remaining stocks for future delivery. The price for delivery in July, which was about $6.20 a bushel on April 23, leapt $12.90 by June 5.

The trading was so frenzied that the Chicago Board of Trade stepped in to raise the margin requirement (the amount of deposit required to be placed on purchases) and finally to limit trading in future for delivery in the next three months.

The ban on soya bean exports is a further blow against the underdeveloped countries by US imperialism.

It must drive up the price of lood which is already in short supply as a result of drought and poor harvests in much of Africa and Asia.

SOCIALIST LABOUR

LEAGUE LECTURES prowas said