EEC has five-point plan ANTI-DOLLAR BLOC FORMED

COMMON MARKET finance ministers of an anti-dollar bloc at their talks in B night, they announced a five-point plan union involving the six member-states Britain.

The proposals envisage the creation of an 'independent monetary zone' to be the first step towards a single Common Market currency.

To this end the Ministers agreed to reduce the permissible margin of fluctuation between member states' currencies from the present 4.5 per cent to 2.25 per cent.

To ensure that these margins can be maintained, the Common Market countries also plan introduce tighter exchange controls to keep out unwanted dollars.

The plan for monetary unification the Common Market is deeply reactionary. It serves the interests of the giant monopolists who want the elimination of national restrictions on their scope of operations.

similar plan last year foundered the antagonism between the French and German employers and was finally wrecked by the Nixon measures of August 15.

Monetary unification within the Common Market implies the importion ruthless dictatorial regime against every worker in Europe, in order to facilitate the monopolists' plans and overcome the effects of the world economic crisis.

Tuesday's announcement sparked the biggest wave of dollar selling since the signing of the Washington currency agreement December 18 last year.

All the major European central banks were forced to buy dollars to support the the has creed rate and prevent currency going through its parity "floor' Overall, they are estimated to have bought in at least $150m Tuesday afternoon alone. The dollar also fell on the Tokyo exchange. forcing the central bank to intervene.

The decision to create a rival bloc in opposition the dollar must widen existing gulf between the European and American 'employers.

It represents another major stage in the disintegration of the three - month - old Washington deal. The agreement is proving unworkable because the American goverument refuses to restore the dollar's convertibility with gold.

Convertibility cannot be restored because there are claims worth $50.000m against the US gold stockpile, and less than $10,000m-worth of gold in stock Dollar convertibility ended on August 15 with President Nixon's decision to suspend gold sales. His Treasury Secretary, John Connally. has since stated that convertibility will not be restored this year.

If it is eventually restored, Connally added, it will be on a would like information about THE SOCIALIST LABOUR LEAGUE Fill in the form below and send to SECRETARY, SOCIALIST LABOUI 186A CLAPHAM HIGH ST, LONDON, Name Address took a major step tor russels earlier this we for progress towards and the four applicant AROUND THE WORLD totally different basis from the pre-August 15 arrangement.

Connally has also made it clear that Washington will make no effort to stem the outflow of dollars to Europe and Japan which has continued unabated despite the December 18 agreeIn the European central banks have repeatedly been forced to absorb dollars in order to support the agreed rate.

In effect, under the Washington agreement, the US capitalists acquired a renewed licence to export capital to Europe in the form of worthless paper.

In exchange for their dollars, they can buy into European industry, banking and finance, W GERMAN MINING COMBINE LOSES CASH W GERMANY'S Ruhrkohle mining combine lost 50m marks (about £600,000) in January of this year alone and recorded an estimated deficit of 350-400m marks (£4.2m to {4.8m) in 197l.

The company, owned by some of Germany's biggest industrial ists, was formed in 1969 to bring together the various Ruhr coal interests into a single cartel.

It runs virtually all the mines in the Ruhr and employs 180,000 The workers are already on short-time because of previous financial losses, caused mainly by a sharp decline in demand for TORIES DESPERATE FOR S AMERICAN TRADE DESPERATE FOR new markets, the Tories sent Minister Joseph Godber to promote trade and investment in Latin America last week. But equally desperate in the House of Commons, they dragged him back to vote in the Common Market division last Monday.

The Minister of State for Foreign and Commonwealth Affairs had travelled thousands of miles for a 40-minute talk with Argentine Fresident Lanusse. He was to have gone on to Brazil, NATION.

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vards the iormation ek. On T uesday monetary countries, including consolidating their position at the expense of their European rivals. The Europeans see these dollar exports as a Trojan Horse for US big business.

The Common Market plan must lead to retaliation from America, possibly in the form of tariff barriers against European goods, or a further devaluation of the dollar.

The US is also hoping to recruit to its own 'dollar bloc' for a fight against the Common Market. The formation of mutually hostile financial and trading blocs is a direct result of the breakdown of the post-war monetary system and signifies an intensified battle for markets between the major capitalist states. coal from the crisis-hit steel industry.

Herr Hans-Helmut Kuhnke, chairman of the Ruhrkohle board, said the 'continuation of the company will require extensive and effective consolidation measures".

Further short-time working in the second half of this year might be imposed as a result of the 'depressing' sit uation, he said.

Four more pits and three coking plants are to be closed in the next 12 months, displacing 10,000 workers other Company mines and leader the mines. but expressed the hope there 'fairly shortly.

Dealings in Latin Americaonce preserve of British imperialism—are now only 5 per cent of Britain's total trade. The area has long passed under US domination.

Before 1914, Britain held two-thirds of the foreign investments there. Today it is no more than 4 per cent.

Only a few giants like Shell have been able to retain a foothold. The growing middle-class consumer market is dominated by American products or Japanese imports.

British entry into the Common Market will mean that less meat and other foodstuffs bought there.

With British capitalism badly in need of new markets, it is not surprising that a top Tory Minister should have been sent out to the old stamping-grounds to see what morsels can picked up. There seems to be a hope that growing hostility to US domination will provide Britain with the possibility for re-entry to some lucrative propects.

City pressure for a new approach to Latin America— which resulted in Godber's foreshortened visit—is no doubt based upon many illusions. The fall in demand is hitting the countries in the area very hard and political discontent is growing. conspiracy.