DR. JIM CAIRNS PREPARES FOR THE NEXT STEP

"James Ford Cairns, up from his sickbed (influenza), came from East Hawthorn to Canberra for his first major public appearance since becoming Australia's Deputy Prime Minister. There was tiredness in the voice. Apart from that, his performance - a speech and replies to questions at the National Press Club luncheon - was hard to fault. Dr. Cairns made moderation and reason the keynotes of his long address. He lavished praise on his leader for his transformation of Australians relations with the outside world, as if to demonstrate his own loyalty to the Prime Minister." - Ian Hamilton in The Herald, Melbourne June 22nd.

Since being elected Deputy Prime Minister, Dr. Cairns has been transformed by influential press commentators. The long pro-Marxist background has been wiped out by eulogies, which present a picture of a new Dr. Cairns, a man who would now be acceptable as an Australian Prime Minister. We are told that even representatives of Big Business have found Dr. Cairns a man with whom they could work. History has unfortunately demonstrated that many representatives of Big Business are either naive or unprincipled when it comes to dealing with the exponent of Marxism. Let there be no mistake; Dr. Jim Cairns is a man deeply committed to the Marxist viewpoint. He is sincere in his beliefs, and he is one of the most able men in the Whitlam Government. He and his backers know just where they are attempting to take Australia. And Mr. Whitlam is not misled by the praise from Dr. Cairns.

The reality of the situation at Canberra is that Mr. Whitlam and his supporters, men like Mr. Lance Barnard and Mr. Frank Crean, attempted to beat off the Cairns challenge for the deputy leadership. When the numbers went up Dr. Cairns emerged as the decisive winner, not only over Mr. Barnard, but also over Mr. Whitlam. The majority was 12. And the pro Cairns forces also easily defeated the challenge to Senator Lionel Murphy, who remains ALP leader in the Senate. The Cairns forces in the Labor Caucus have made it clear to Mr. Whitlam that they have the numbers to impose their will. Dr. Cairns has pre-positioned himself for the next move.

We have previously commented on the fact that Dr. Cairns does not need to be Minister for Foreign Affairs in order to advance his own foreign policy programme through trade, this being increasingly with Communist nations. It should also be stressed that apart from a direct challenge to Treasurer Frank Crean, Dr. Cairns has not sought the position of Treasurer at this time because he is well aware of what is about to happen in Australia; the inflation crisis is going to worsen, and the industrial chaos is going to get worse

. In his National Press Club address Dr. Cairns said that inflation had never been reduced anywhere without causing unemployment. As a certified economist, Dr. Cairns must be aware that there are now many examples of inflation continuing to increase in spite of unemployment. This is described as "stagflation" a new example of gobble-de-gook. Dr. Cairns has further improved his new conservative image by calling for restraint from both politicians and public servants. But it remains to be seen if Dr. Cairns is prepared to use his strength in the Labor Caucus to insist that this restraint be practised.

The truth is that Dr. Cairns, the Marxist, must believe that there is no solution to the finance-economic crisis now deepening daily throughout the whole of the non-Communist world. Dr. Cairns knows that this is no time for him to be Federal Treasurer. He can thus disclaim any responsibility for the disasters now so clearly ahead. When the crisis reaches the stage where it is obvious that Mr. Whitlam has lost control of the situation, the backers of Dr. Cairns will call for a much more "radical" approach. At that stage Dr. Cairns could become the Prime Minister.

Australians cannot blame us for not attempting to warn them of the inevitable acceleration of totalitarianism so long as there was no effective challenge to the financial policies, which generate inflation at an increasing rate. The choice before Australians is clear; either they unite to insist upon a genuine alternative to inflation, starting with the two point programme suggested by Queensland Premier J. Bjelke-Petersen - abolition of Sales Tax and consumer subsidies - or they will be pushed towards the complete Marxist State.

WHITHER PORTUGAL?

"After fifty years underground, the Communist Party emerged from Portugal's April 26 revolution as the best organised political group." - The Australian. June 26th

We do not consider it to be an exaggeration to contend that Portugal could be under a Communist Government within the next couple of years. This will startle many, who have been labouring under the impression that Portugal has been a "little Spain", with a devoutly Roman Catholic population, led by a very strong, even "semi-fascist", military-type Government. This may have been partly the case in years gone by; but the forces of subversion have been eating away at all levels of Portugal's society; just as in other countries.

The news that Communist Party members and supporters have seized control of most of Portugal's municipal and parish councils comes as no surprise to us. Local Government elections will be held in a few months time, and general elections in 1975. The April 26 "revolution" did away with some 300-odd councils of the old regime, and the Communists have a firm grip now on nearly 200 of these.

What does all this mean? It means that the Communist global strategy, which has been stymied for so many years by the firm resolve of Southern Africa, is now nearing a position where it can again move into forward gear. The U.S.S.R. must seize control of the Cape of Good Hope sea-lanes if it is to isolate and strangle Western Europe. If we bear in mind the colossal volume of shipping which now travels these sea-lanes with OIL from the Persian Gulf for Western Europe in particular, then the picture becomes a little clearer.

We must also bear in mind that Russia is in a position of strength now in the Middle East, and this means her virtual domination of the Suez Canal, which is now in the process of being re-opened. Indeed, as we mentioned in ON TARGET last year the most recent "hot" phase of the Arab-Israeli war was brought on with the re-opening of the Canal as one of the prime objectives. This will allow Russian naval forces and logistical support to enter the Indian Ocean with greater ease.

What's it all about? The main point is the stepping up of the guerrilla warfare in Southern Africa. There are other reasons. Already we are in receipt of reports of far heavier military hardware being placed in the hands of the "freedom -fighters", alias terrorists. These terrorists don't hesitate to kill and maim their own kind in the cause of the revolution.

And this brings us back to Portugal. Already the Portuguese authorities have made the error of holding "negotiations" with Frelimo, the Communist-backed terrorist organization in Mozambique. A mistake because this gives official recognition to Frelimo; thus raising its status, locally and internationally, and simultaneously demonstrating weakness on the part of the Portuguese administration. If a Communist Government - or even a Communist-influenced Government, is elected in Portugal; then we give readers one guess as to the policies, which will be effected in the Portuguese provinces of Angola and Mozambique. The increased pressure, which such policies of full support to the Communist revolutionaries in these provinces will mean, will then be brought to bear on Rhodesia and South Africa.

It is too early now to speculate on what measures the International Communist Conspiracy will employ as the war against Southern Africa is escalated. A Vietnam-type conflict is possible, with highly-trained military forces from North Korea, North Vietnam etc., brought in. South Africa and Rhodesia are soon to be tried as never before.

Mr. Whitlam's (or should we be more accurate and say Dr. Cairns's) "Australian" Government is doing everything in its power to destroy support for Rhodesia and South Africa in Australia. We know that this policy has absolute top priority with the K.G.B. Perhaps some parliamentarians at Canberra know it also.

OPERATION OFFENSIVE IS ROLLING

Even the most wishful thinkers no longer deny that a major finance-economic crisis threatens Australia. The threat of physical violence in the building industry is an ugly indication of what could develop in the immediate future. It is therefore imperative that League actionists ensure the widest possible distribution to the special inflation brochure issued last week. Only by generating sufficient grass-roots pressure will Liberal and Country Party Members, both Federal and State, be moved towards a constructive anti-inflation policy.

We are making no fixed charge for the brochures, but those wishing to handle larger orders should attempt to contribute $16 per thousand, posted. We are relying primarily on donations to pay for this major campaign. But we do not want anyone to be held back because of financial difficulties. Obtain your supply from your State headquarters of the League.

THE TREASURER COMMENCES TO FACE REALITY

"'The Treasurer (Mr. Crean) last night gave clear warning that severe inflation and the credit squeeze would last another year, or more." - The Age (Melbourne) June 26th.

Over the past few weeks we have watched and read, incredulously as the Treasurer, first of all denied that there were any restrictions of bank credit; then castigated the private sector of industry for pessimism over the state of the economy, seeing only grounds for optimism. Now he admits that the squeeze is "on" for a year "or more". We'll put our bets on "or more". He now denies that there will be a recession, nor any "stagflation". We'll go on record and say that both will be strongly in evidence by this time next year; that is unless present monetary policies are reversed, which we do not expect.

Mr. Crean is either incredibly naive; or he is just another sly Socialist. Whatever the case, we feel that his days in the Treasury are numbered; the "old school" must make way for the "new guard". Dr. Cairns, without doubt, knows who will be controlling the Treasury before the end of the present Parliament.

Under the present tenets of finance-economics the Treasury-Reserve Bank combination has acted "classically". Orthodox economics has no, repeat no answer to inflation whatsoever. It can only employ the "palliative" of deflation - if it can be called that. We can't think of any sectors of industry and commerce which have their lot eased by deflation, which means credit restrictions, higher interest rates, higher taxation, retrenchments, unemployment. But the economists say that this is good for us, because things would be so much worse if we didn't have it; as with a dose of castor oil. But the castor oil is to come with the Budget in September.

We are asked to bear in mind that we must stop the intense demand, which is causing prices to soar upwards because we all have so much money. We have so much money that every man, women and child in Australia owes the Hire-Purchase companies somewhere around 400 dollars, and all the "money" in Australia at any time would not redeem a quarter of the total debt of Australians! But the treasury and all the economists insist that we do have far too much money, and that deflation is the only answer.

BRIEF COMMENTS

Australian manufactures are expressing extremely gloomy views about the business outlook. An unprecedented 73 per cent of businessmen who took part in a survey conducted by the Associated Chambers of Manufactures of Australia and the Bank of New South Wales now expect a serious worsening of business conditions in the next six months, compared with 36 per cent in March.
Regular readers will recall that in our issue of June 7th we described as "drivel" the view of the Department of Secondary Industry that "The outlook for most industries remains bright."

Those who do not understand dialectics will no doubt be astonished by Dr. Jim Cairns' statement that "I think the existence of an organisation like ASIO is probably necessary in a modern society." But Dr. Cairns did not say that an intelligence and security organisation is necessary primarily because of Communist subversion.

A top American authority, Barron, on the Soviet KGB, stated earlier this week that the KGB is now giving Australia special attention.

Former Australian Prime Minister William McMahon who recently described himself as the man most qualified to be Federal Treasurer, with Dr. Jim Cairns second-best, has not contributed to Australia's security by revealing publicly on a TV programme a top secret intelligence organisation. Mr. McMahon also said that "If I had known (as Prime Minister) that the activities of a member of Parliament were under scrutiny by ASIO, I would immediately have taken action to see that it stopped, and what records there were, were destroyed."
Is Mr. McMahon so ignorant that he does not know that the KGB has a special interest in Western politicians?
Like all human organisations ASIO is far from perfect. But we fear that current criticism of ASIO could lead to a destruction of its effectiveness.

The Root of Evil