US recession aggravates economy W German 'miracle' inflation crisis

position in the world market is deteriorating.

A general slow-down has been visible since 1969, aggravated by the US recession.

• German business invested in industrial equipment massive scale through the 1950s and 1960s.

For many years it was able to make bumper profits, making use of abundant supplies of labour power and taking advantage of the effect of long years of Nazism, war and social collapse on the working class.

Success

With these advantages the W German share of world trade increased at the expense of rivals such as Britain. The success of the export drive strengthened the balance of payments and made the mark the strongest European currency.

The German 'miracle' was furthered by an influx of US capital. For many years the Christian-Democratic governments obsequiously followed US policy.

The rise of the mark was paralleled by the decline of the dollar until, to shore up ALL TRADES MEETINGS Miners and the Charter of Basic noon. Ship Inn. Speaker: Hinchcliffe (Glasshoughton Colliery). BENTLEY: Sunday, January 10, 12 Frank Mccabe (Brodsworth Colliery: Horse Inn. Speaker: 12 noon. Ship 12 noon. Shipaturday, laneary k Barker (Ollerton Colliery).

Come to Alexandra Palace!

Force the Tories to resign! 8 p.m. AEU House, 396 Dunstable LUTON: Tuesday, January WEST LONDON: Wednesday, Janalte Si. NWI! p.m. Prince Albert, DAGENHAM: Thursday, January 14. p.m. Marsh Green School, New Rd.

So hire i Camber Crea NORTH LONDON: Thursday, January 14, 8 p.m. Sir George Robey. (Opposite Finsbury Park Astoria). SOUTH WEST: Monday, 18, 8 p.m. Co-op. Hall, 47-51, Balhạm High Rd.

CROYDON: Monday Tanuary 18, 8 p.m.. Ruskin House, Coombe Rd, S Croydon.

ACTON: ( January 20, 8 p.m. Oddfellows Wednesday Hall,, Fletcher Rd. W3.

WILLESDEN: Thursday, January 21, 8 p.m. Fishermen's Arms, Old Lane. nr Willesden Junction Station, N.W.10.

SLOUGH: Monday, February 1. 8 p.m. St George's Church Hall. Long Furlongs Drive, Britwell Eastate.

WEATHER RATHER cloudy in all areas, but the world monetary sytem, W German authorities were obliged to revalue the mark.

Since then German goods have been dearer in terms of foreign currencies and this has acted as a drag on exports. Meanwhile intensified competition was coming from the new industrial giant-Japan.

While the international situation became less favourable to Germany, domestic production costs were rising.

During 1969 a series of strikes, mostly unofficial, forced up wages. The grip of class-collaboration was beginning to loosen.

Now even the most conservative trade union leaders are obliged to ask for increases two or three times greater than those they • had negotiated in the past.

For the first time since the early 1950s the spectre of inflation is raising its head and evoking all the fears which go back to the collapse of the mark in the 1923-1924 period.

Alongside mounting tion marked down in production and search for new profitable outlets for investment.

One reflection of this is to be seen in the agreements with E European countries a natural area for German expansion.

German industry hopes to tap a growing market and take advantage of the bureaucracy's crisis to embark upon a policy of economic penetration.

Investment

Giant industrial concerns and banks have been interested in the underdeveloped countries for many years.

By the end of 1969 direct investment in these countries amounted to something like $1,500m.

The German stake is particularly noticeable America parts of Africa where German interests US. into collision with Japan and even her Commor Market 'partners'.

Forces are pushing German capitalism, headed by a Social-Democratic cabinet, into imperialist expansion.

Imperative necessity It is to maintaih, let alone increase the volume of exports.

Fears of inflation meanwhile keep interest rates high and hold back the growth of credit. This attracts inter national. funds to Frankfurt and other financial centres with a consequent weakening of other currencies and, more serious for industry, the dampening down of home demand.

German policy is now pushed this way and that by remorseless economic forces.

Great class struggles like those shaking Italy, France and Britain are now due in W Germany.

The signs of a new militancy, ( which first broke surface in the latter part of 1969, were the harbingers of a change in class relations which may well mature this year.

Egypt bo! gents nicht bei der Post '' ver der Fost The grip et class collaboration by union leaders on the German working class has been violently broken in the last few years In a serles of strikes and demonstrations. Engineering workers are seen above marching through Bonn. POLAND'S new Stalinist leaders are already making far-reaching concessions to the extreme right, as they confront continued working-class unrest. Problems widen for US in

Indo-China

FIGHTING continued yesterday along Cambodia's vital Highway 4, leading to the country's only deep-water port at Kompong Son (Sihanoukville).

Cambodian government troops withdrew from an engagement at the Pich Nil Pass, after they suspected they were being drawn into a trap.

Meanwhile in Saigon, the US command is seriously considering preparations to fly vital supplies into Penh, dictator Lon Nol's beBreak siege The Americans fear a new offensive by liberation forces in the spring would threaten the continuation of Lon Nol's BY A FOREIGN CORRESPONDENT regime, which now holds only a few key enclaves in the country.

General Frederick Weyand, US second-in-command Vietnam, is in Phnom Penh for urgent talks with Lon Nol and other Cambodian army representatives on plans. to break the siege of the capital.

The US is also concerned that heavy bombing raids along the Ho Chi Minh supply trail from N Vietnam to the S, are having little effect.

Typical results of a full day's bombing by 30 B-52s and several hundred fighterbombers dropping 2,500 tons of bombs might be to put out of action less than 20 of the 5,000 lorries used to transport material on the trail.

More problems for the US are to be found in Thailand, where mounting guerrilla insurgency goes hand in hand with a worsening economic crisis.

Trade deficit

The country's overseas trade deficit now stands at the fantastic total of £227.8m, despite imposition of heavy import taxes last summer.

Though the government is under pressure to impose total ban on imports of luxury goods and raise the petrol tax, devaluation, of the Thai currency is almost certain.

In addition to NLF guerrillas, many of them Meo tribesmen in the N, premier Thanom Kittikachorn's regime has to face a revolt by Moslem minority in four southern provinces.

The government also sent troops to Cambodia last May during the US invasion.

Heavy US aid is only imposing further intolerable burdens on the Thai economy and hastening the overthrow of the Kittikachorn regime.

incipled