Wild buying to save dollar Pressure grows for Europe revaluation IN THE MIDST of intense pressure against the dollar, a joint European currency 'float' looks increasingly likely. Only considerable purchases of dollars on Thursday and yesterday by every European central bank has prevented the dollar from falling below its

we When the money markets opened yesterday the run against the dollar continued and the Bundesbank was forced to come to its aid within five minutes of trading operations.

On the London market the price of gold rose sharply in early trading, being fixed at $65.20 an ounce.

On Thursday alone it is estimated that over $1,500m were purchased in support operations. Pressure against the dollar was heaviest in West Germany and Switzerland.

Most significant developments occurred in Lurich. Only last week the Swiss national bank imposed an 8 per cent surcharge AROUND THE=WORLD Eagleton to swing unions? THE DEMOCRATIC Party convention at Miami Beach, Florida, yesterday endorsed Senator Thomas F. Eagleton as George McGovern's running mate in the November presidential elections.

Eagleton, a little-known lawyer from Missouri, was reportedly a compromise choice following Senator Edward Kennedy's refusal to run for vice-president alongside the Democratic candidate.

By picking Eagleton, McGovern has tried to appease his powerful opponents within the Democratic machine. In addition his running mate — Roman McGovern sentiment Catholic appeal to Catholic vote.

As a prominent labour lawyer with close ties into the AFL-CIO (American TUC) bureaucracy he is well placed to soften the antion all dollar sales, but this failed to prevent the inflow. A leading bank official said that the government might soon have to withdraw support from the dollar and allow the franc to float.

Frankfurt once more has been forced to tighten its exchange regulations to limit the inflow of dollars. Banks will be required to increase their reserves held against foreign currency holdings by another 10 per cent.

The Banque de France taken similar steps.

Markets in Tokyo were highly nervous yesterday. central bank had to take more than $50m to avoid an ward flotation of the yen.

Behind this currency crisis lies the growing preparations for economic and trade war between Europe and America. European among the trade union top brass.

His selection is typical of the wheeling and dealing for votes and influence which characterizes every American presidential election.

The McGovern camp know that without the funds and support of the right-wing union also in leaders they stand little chance against President AFL - CIO chief George Meany has been one of the most outspoken enemies McGovern's candidature.

Now McGovern has to woo him with concessions.

Eagleton's revaluation would threaten to price many exporters out of the American market while at the same time giving American exporters a corresponding advantage in the world market.

This would be the second blow struck by the Americans against Europe in less than six months. Only last December the forced a series of revaluations in Europe as part of the Washington currency realignment arrangements.

There is little doubt that the main force behind the huge flow of dollars into Europe is the Americans themselves. Under these conditions, while the Germans and French may try for a little longer to soak up the pressure, at some point they must yield and revalue - their currencies.

will also help to appease some of McGovern's young supporters who have been growing restive about the Senator's increasing 'moderation'.

Eagleton is described as a 'dove' over the Vietnam war and has a record of voting in the Senate against Nixon's escalation of the war. THE AMERICAN a te Department found little encouragement from the first day of the resumed Vietnam 'peace' talks in Paris.

Commenting on the opening statements by the North Vietnamese and National Liberation Front delegations, a spokesman said: We certainly cannot draw any initial encouragement from what were pretty stiff opening statements by the other side.' Washingon fears its diplomatic arm-twisting over the past two months may have failed to force a change in the position of the Vietnamese leaders.

Despite the intensive bombardment and the blockade of North Vietnamese ports - measures carried out without the slightest opposition from Moscow and Peking-the Vietnamese fighters show no signs of accepting the US demand for a ceasefire.

Outside the city of Quang Tri, south of the demilitarized zone, there has been fierce fighting for the past four days as North Vietnamese and NLF troops hit back against an invading force of South Vietnamese marines.

The Saigon government and its advisers wanted to retake Quang Tri on the eve of the resumption of talks in Paris.

Instead, their forces have been drawn into a trap and are being badly mauled by the liberation forces.

American heavy bombers have been flying repeated missions in the area in an effort to stop liberation troops encircling and cutting off the marine force.

Part of their payload includes poison gas — as the Defence Department confirmed on Thursday. commenting on protests from Hanoi about the use of gas shells and bombs, the Department said the dropping of tear gas and nausea gas bombs did not represent any change in the long-standing US policy on the use of such weapons- Friedheim referred statement in September 1969 which said the use of Tear gas was part of a continuing effort to use weapons down casualties.

This amazing "justification' does not inhibit the Defence Department from dropping blockbusters on the victims of its gas attacks.

Helicopters are also carrying tear-gas canisters to prevent panic-stricken soldiers and refugees from dragging them down in efforts to scramble aboard!

'To guard against this very hazardous situation, selected helicopter crews engaged in evacuation operations were issued with aerosol CS containers,' an army statement said.