Tested team for assault on Europe and Japan Trade-war cabinet Bank rate rises mean recession

LEADING capitalist countries of Europe are trying to protect their own currencies by big rises in bank interest rates.

The French central bank raised its discount rate by 1 per cent to 74 per cent on Thursday and the German banks followed suit with a rise of t per cent to 4z per cent.

The British bank rate already stands at 74 per cent. Relending rates are even higher, at over 10 percent. The rise in interest rates must lead to a decline in new investment as borrowing money becomes more expensive.

In Britain this is taking US clamp on British car PLANS ty American car manufacturers in Britain to cut their exports to the United States are creating a serious situation for the Tory government.

Ford has virtually ended sending its British-made products to the US and now General Motors is to stop exporting Vauxhall cars to Canada, and Chrysler has temporarily suspended shipments from Britain to the US.

This will leave British-Leyland the only major manufacturer Britain selling to the United All Trades Inions Allian‹ MEETINGS Fight Rising Prices Force the Tories to Resign BASINGSTOKE : Sunday December 3, 7.30 p.m. 'The Hop Leaf", Church Street.

BRACKNELL: Monday December 4, 8.00 p.m. Priestwood Community Centre.

WANDSWORTH: Tuesday December 5, 8 p.m._ Selkirk Hotel, Selkirk Road, Tooting Broadway. 'Fight Rising Prices'.

CLAPHAM: Tuesday December 5, 8 p.m. Small Hall, Clapham Manor Baths, Repression in IreStreet, SW4. land-State Pay Laws in Britain: Preparation for the Common Market.

TOTTENHAM: Thursday December 7, 8 p.m. Bricklayers Arms, Tottenham High Road (near White Hart Lane).

HOLLOWAY: Thursday December Ters Doad.o oPreell, Sanen Sisters Road. 'Free MacStiofain'. I would like informatior THE SOCIALIST LABOUR LEAGUE Fill in the form below and send to NATIONAL SECRETARY, SOCIALIST LABOUR LEAGUE, 186a CLAPHAM HIGH ST, LONDON SW4 7UG. Name....

Address. place at a time when large amounts of capital are being exported to the Common Market in preparation for entry at the beginning of next year.

According to the Financial Times, concern is being expressed in Whitehall about the outflow of investment capital from Britain to Europe.

"The rate at which this is happening is beginning to worry ministers, the paper reports.

The government-which authorized the outflow of capital earlier this yearis now trying to encourage an increase of investment in Britain from the EEC.

The government had originally feared that there imports States, with serious consequences for British earnings of foreign exchange.

Behind the US manufacturers' decision is the Nixon government's policy of protecting the home market while encouraging a major drive to conquer markets overseas.

More than half the motor industry in Britain is owned by American firms, making it BIRKENHEAD : Sunday December 10, 7.30 p.m. Pier Hotel. WATFORD: Monday December 11, 8 p.m. Upstairs Room, Watford Trade Union Hall, Watford Road (opp. Watford Junction Station).

HULL: Monday December 11, 8 p.m. 'White Hart', Alfred Chelder Street, near Drypool bridge. "No state control of wages.' ACTON: Monday December 11, 8 p.m. Co-op Hall, High Road, W3. 'Free Sean MacStiofain'. WEST LONDON: Tuesday December 12, 8 p.m. Prince Albert, Wharfdale Road, Kings Cross. 'No State Control of Wages'. LIVERPOOL: Tuesday December 12, 7.30 p.m. The Mitre, Dale Street.

EAST LONDON : Tuesday December 12, 8 p.m. Festival Inn, Crisp Street, E14. 'Build Councils of Action'. ' CROYDON: Wednesday December 13, 8 p.m. Ruskin House, Coombe Road, Croydon. "Free Sean MacStiofain'.

MANCHESTER: Thursday December 14, 7.30 p.m. Milton Hall, Deansgate.

LEEDS: Thursday December 14, 8 p.m. The Peel, Boar Lane. ON, State Control of Wages'.

about would be a major inflow of capital from the EEC when controls were removed. But this has not happened.

The bank rate rises thus foreshadow increasing unemployment, rising, prices and recession particularly At the same time the influx of British capital is creating great resentment, above all in France, where British firms have moved in on the property market and food industries.

The stage is being set for a major recession in Europe as the US prepares to apply a savage squeeze to EEC exports at the same time as investment slumps and bank loans become more expensive. ton is primarily tailored to the require. ments of trade war against Europe and Japan.

Nixon has confirmed William Rogers, a tested member of his inner team, as Secretary of State (Foreign Minister) in But perhaps the most significant appointment at the State Department is the undersecretary for economic affairs, William Casey, a 59-year-old chairman of the Securities and Exchange Commission.

Casey is directly connected with the centre of US capitalism on Wall Street and has the reputation of being a tough operator.

He will take charge of the vital trade negotiations Common due to open early next year eiths aean and the due to open carly International Monetary Fund talks on the currency crisis.

simple matter to close off the bulk of the huge American market to British-made cars.

The United States and Canada form by far the largest export market for British cars. Not only do British manufacturers have to compete against the US giants, however, they also face. stiff competition in the small car sector from the Japanese.

Faced with the actions of General Motors and Chrysler, the British authorities are reduced to pleading with a hostile Nixon administration for a fair chance in the American market. the new administration.

year Witn The US is seeking to impose a monetary reform' which would raise its exports at the expense of the other main capitalist countries. It will also be pressing the EEC to dismantle its agricultural tarifis and other protectionist practices.

Casey will also be attempting to force Japan to cut its exports to the US still further and accept more American goods to rectify its huge trade surplus with the The new Nixon cabinet is a trade-war cabinet, set up at a time when the international economic crisis is worsening and out of control.

At the International Monetary Fund's Group of 20 earlier this week there was an unbridgeable gulf between the US and Europe and no progress was made towards agreement on monetary questions.

Dutch deadlock WEEKS if not months may elapse before a new Dutch government is formed following the defeat suffered in the General Election by the parties which made up the outgoing coalition government.

In the meantime, the former prime minister Barend Biesheuval will head a caretaker government. Commentators were agreed that political life was in a complete deadlock following the Holland, like the rest of Europe, is suffering from spiralling inflation, industrial decline and rising unemployment which brought down the previous government.

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