Wilson government takes the capitalist road
By Jack Gale
1964The NewsletterJack Gale Read the scan at ETOL (PDF) →Read from the scan by machine and not corrected: headlines and words can be misread, and a caption or advert can run into the text. For anything you quote, read the scan.
POLITICAL CORRESPONDENT R. REGINALD MAUDLING, ex-Tory Chancellor of the Exchequer, claims that the Wilson, Brown, Callaghan proposals for a 15 per cent import surcharge was, in fact, prepared by the Civil Service under his instructions.
Moreover, the Tory Party will not divide the House when the Bill authorising these charges is presented in the Commons.
Thus on the major question of economic policy, as The Newsletter pointed out continuously before the election, Labour has nothing better to offer than a plan worked out previously by the outgoing Tory chiefs.
Because it is a capitalist plan it will in the end bring capitalist results. It cannot in any way alleviate the crisis other than by placing the main financial burden for it on the backs of the working class.
Firstly, the plan proves the impossibility of introducing widespread automation under capitalism.
The surcharge will affect practically every item of automated equipment which Britain is forced, due to the stagnation of her own industries, to import from America and Western Europe. This may well immediately apply to over 30 per cent of the engineering imports.
Brake
Secondly, despite the emphasis on increasing exports, the plan may well act as a further brake upon such increases.
What right-wing Labour has done is to introduce a tariff restriction on import of goods such as motor cars and machinery of vanious kinds, which means that as their price goes up, there will be more demands for similar goods made in Britain on the home market.
Manufacturers will therefore be inclined to satisfy this demand rather than embarking on an export drive with a much more unstable remuneration.
Without the assistance of automated machinery, the technical standards of British exports will remain low. The only real profitable export I'ne today on the world's markets is, in fact, automated machinery, and the United States is undoubtedly first in the field in this connection.
Tariffs
Thirdly, this tariff measure may possibly provoke counter tariff measures, particularly in Western Europe. West Germany, which will be amongst the hardest hit of all the countries, has already described the measures as a backward step and 'a political blow' to Europe.
Recent trading figures reveal that the Western European market was responsible for absorbing a high percentage of British exports. Even though these made only a small profit, a tariff trade war waged from Western Europe could have disastrous trade results for Britain.
Fourthly, the cost of living will go up so far as commodities depending on imports are concerned.
This will intensify the conflict between the trade unions and the Labour government.
The Newsletter has always insisted that good socialist planning is impossible without the nationalization of the basic means of all the production. Wilson rejects this socialist solution in favour of operating capitalism.
In a very short while his government will be just as discredited as that of the Tories.
Those Labour lefts who are marching blindly behind him at the moment, should pause and think over the disastrous consequences this can have, so far as the struggle for socialism in Britain is concerned. "TRIBUNE) last week produced a Celebration Issue' to commemorate Labour's narrow election victory. As expected, the paper was full of joy-after all, weren't the 'left wing' getting into the Cabinet? They even published pictures of Harold Wilson, Richard Crossman, Anthony Greenwood, Barbara Castle, Fred Lee and Frank Cousins with a banner headline-_ "Tribune takes over from Eton in the Cabinet!
But already there are clear signs that "Tribune' intends to continue its pre-election retreat and to cover up for Wilson's attack on the working class.
EXCUSE
In an article called *'The Labour Government and Home Affairs', , Michael Foot excused the government in advance for not carrying out socialist measures:
'We do not claim that the Socialist society we wish to build can be achieved with a majority of four.' In fact, Foot does not talk about taking power from the capitalist class but only of 'guiding' and 'influencing' the economic situation and international affairs.
Foot then gives a clear hint at measures against the working class, clearly implying that *Tribune' will support such measures:
'No doubt the economic situation left by the Tories is extremely serious. Several difficult and unpopular decisions will be inescapable.' DISCOVERY In another article Ian Mikardo takes the same line. After describing Labour's election campaign as 'aggressive, 'hard-hitting', 'uncompromising', "forthright' and 'principled'-in fact all the wonderful things which Mr. Mikardo always discovers in Labour's programmes about election time —he then gives his opinion that 'the nation' is certainly "ready to accept some sacrifice, if the Chancellor has to 'take some first-aid measures'.
Surprisingly enough, a careful perusal of "Tribune' just before Cont. p. 4, Col. 6
Dr. Allen:
Leeds university lecturer Theonara victor* Alen - Leonard VICIOT during an alleged 'escape attempt' from Nigeria (reported last week) was, The Newsletter understands, the result of a frame-up.
It is believed that Dr. Allen, a 41-year-old Leeds university lecturer, was attempting to obtain money from sources outside the country to finance his trial.
Last week the bearded doctor was detained on the Nigerian border in the robes of a Hausa tribesman. He was jailed for making a false statement and using a false document.
The Newsletter understands, from reliable sources, that the man who travelled with Dr. Allen to the frontier, and ran off when he was arrested, was a police agent. It is also thought that the driver and 'guard' of the taxi which took him to the border were also policemen.
Houses searched
Along : with three Nigerians, trade unionists Jonas Kiomasekenagh and Sidi Kayam and teacher Olushengun Adebayo, Dr. Allen is awaiting sentence