Mr. Jeremy-Lee the Deputy National Director of the Australian League of Rights reports

"Opposition leader Malcolm Fraser has adopted a mere realistic stance on Australia's defence then his pre-decessor. He has pointed out the dangers resulting from the opening of the Suez Canal, and urges Australian support for a U.S. base at Diego Garcia to counter communist influence in the Indian Ocean. The Federal Opposition has also put -forward a 12-point plan for Indo-China. This included, according to the Sydney Morning Herald (14/4/75) "a request to Russia and China to restrict their arms supplies to North-Vietnam."

"If the Opposition is to make any claim to face reality, they should add another point to their 12 point plan - a request to the United States to cut all technological aid to the Communists, and prevent a recurrence of the situation graphically described by Anthony Sutton in his explosive book National Suicide ($3.75 posted) wherein thousands of Americans and South Vietnamese were killed by their own technology.
The frightful tragedy of Cambodia and Vietnam has been self-induced by the supposedly anti-communist West. If this fact cannot be driven home to Opposition parliamentarians, the sacrifice of Indo-China will have been in vain.

"While the political pundits and academic gurus discuss the, pros and cons of the "domino theory", the extension of Communist insurgence through S.E. Asia is being stepped up. The Sun-Herald (13/4/75) in a front-page article, reported: "Renewed Communist guerilla attacks in Malaysia this week have revised fears that the domino theory is becoming a reality after all."

YET ANOTHER AFRICAN COUP

"The Sydney Morning Herald (14/4/75) reported
President Ngata Tombalbaye of Chad was overthrown by an Army coup here today, Chad Radio said."

Chad is another country where bestial barbarism has received little publicity from the controlled news media and the Red Network. A brief report in Time magazine on November 18th of last year referred to the savage persecution of missionaries that had occurred in Chad. 130 Protestant Church leaders had been assassinated. The number of Catholic and Moslem leaders killed was unknown, but many had died. All of which contrasts with the advances made by the African people in Rhodesia and South Africa, despite the most vicious and slanted stream of reporting in the Western world on these countries, designed to further the communist revolution.

THE TRAGEDY OF 'TOO LATE'

"Portugal's Roman Catholic Bishops entered the political arena yesterday by prohibiting Portuguese Catholics - officially 90% of the population - from voting for left-wing parties in the April 25th election." Sydney Morning Herald, 14/4/75

As has been pointed out before, General Spinola unleashed a whirlwind with his 'coup' last year. Whatever his motives, Spinola delivered his country into the hands of the Communists, who were surprised and delighted with this unexpected gift. No democratic vote can reverse the communist control of Portugal, with the massive concentration of money and revolutionary expertise now being invested by the Soviet Union in Lisbon. The western gates to the Mediterranean, guarded by Gibraltar, are now in mortal danger.

What does this mean to Australia? Portuguese Timor, only a short distance from Australia's northern coastline, will play an increasingly larger part in the Soviet's Indian Ocean strategy. Has the Opposition grasped this fact? Where does Australia go from here?"

QUEENSLAND AND NORTHERN N.S.W. ANNUAL DINNER AND SEMINAR

CANADA'S DEEPENING RACIAL FRICTION

Mr. Eric D. Butler reports from Canada
I recall Mr. Al Grassby, Australia's "expert" on race issues, telling Australians how they should take note of Canada's success in integrating non-Europeans into a predominantly European nation. I would like to have had Mr. Grassby with me recently in Western Canada, where we could have discussed the question of why there is such open bitter feeling against East Indians.

Those familiar with Victoria and Vancouver know that over the years the general atmosphere has been strongly pro-English. Victoria could in fact, have been placed down in England with little disturbance. But the situation has dramatically changed, even over the twelve months since I last visited this part of Canada. The cause is the big influx of East Indians and the friction, which has subsequently developed. Even the most tolerant Canadians are expressing themselves in the strongest language. The politicians are starting to get the message, with the result that there is open discussion at Ottawa concerning the desirability of halting the flood of non-European migrants.

The press carries many letters on the subject of non-European immigration, with special reference to the East and West Indians. One interviewer was taken back when, after he had charged me with being a "racist " I said I had no objection to being called that, I went on to say, however, that I was a "racist" in the sense that I believe that different races, with different attributes and different cultures, were a major feature of the reality of the world. Some of these races find it much more difficult to work together harmoniously than do other races. Anyone who knows Africa is aware of strong feeling of Africans against East Indians.

Vancouver has always had a large Chinese community and, until comparatively recently, when the Chinese Communists have started to cause trouble, relations between Chinese and Europeans have been reasonably harmonious. But the East Indians have proved generally unpopular with all other groups. Rightly or wrongly, they are described as "arrogant". Already there has been considerable violence. Many are open supporters of the Peking brand of Communism, this arousing the hostility of the local Canadians of Chinese background.

Opposition to the East Indian influx is not confined to the cities, where an alien group tends to concentrate into a few areas, creating in those areas an alien type of culture, with consequent friction. In small communities where East Indians have penetrated, there is dislike and distrust. The friction is extending to University campuses. A young University student in Alberta was explaining to me how she had no strong feelings on race issues, and that one of her friends was a non-European. "But", she said, "with a big influx of non-Europeans, particularly the East Indians, we now have feeling where none previously existed." The same student was extremely critical of new non-European lecturers.

The Canadians are discovering that one homogeneous group cannot absorb too quickly members from other groups without producing friction. This is a natural law, which the windy theories of the Al Grassby's of this world cannot alter. A strong dash of realism on this question of immigration has been provided by a New Zealand acquaintance of mine, a full-Chinese born in New Zealand. I discussed this question with him recently in New Zealand. In a submission to the New Zealand Minister of Immigration, this New Zealander of Chinese background made the point that, against his background of Chinese education in Canton, and two-years as an assistant-company secretary in Hong Kong, he opposed large-scale immigration into New Zealand because of the problems this would create, not only for the European New Zealander, but also for the relatively small number of Chinese New Zealanders.

His submission contained the fol1owing powerful comment: "The Chinese do not condone the idea of 'integration' and 'assimilation' as is accepted by and between the Caucaoids of this country. Deep down in every Chinese heart, it is his or her desire that their children marry one of their own kind - that they retain certain basic features of our own culture, tradition, etc."

Intermarriage between Chinese and Europeans has not been as common as many have led us to believe - and for the so-called successful unions, in that respect, there has not appeared any indication that there is a swing in that direction. One-hundred-odd years of Chinese immigrant history in New Zealand confirms this point-of-view - notwithstanding the current disputations to the contrary.

We, all of us admire the qualities of the Chinese, but for all that, we must conclude, and repeat, therefore, that the Chinese are not the best material as migrants as far as this country is concerned - emotional issues apart. Bi-racialism, dual-nationality-citizenship of arriving immigrants are matters for the concern of the far-sighted. The acid test for any newcomer to this country, or, for that matter, for those already here, is to be faced with the challenge: 'Can a man serve two masters'? and/or 'If in the event of war between 'your country' and 'ours' for whom would you shoulder arms?" Canadians of Chinese background express the same type of view - and warning. Australians should take heed.

YET ANOTHER NOTED ECONOMIST WARNS OF HYPERINFLATION

"Inflation would reach 30-40% by the end of the year if the Government did not cut spending, an economist said today". - The Sun (Melbourne) April 1st.

Professor Arndt, of the Australian National University said that Dr. Jim Cairns' attitude towards inflation was dangerous and irresponsible. We stated in last week's On Target the Socialists have no ideological opposition to inflation at all. The reason is that inflation prepares the ground in any Western society for socialisation. By the automatic process of continually forcing up the costs of goods and services (in particular) inflation brings about a politico-economic situation where the individual is no longer able to provide himself, and his family with essential services; and so the State (Big Brother) eagerly intrudes to take over the responsibility - but at a price.

And that price is freedom. Just a little bit at a time, you know. Nothing for anyone to get excited about! For example, the cost of providing private medical insurance for a family is no longer a normal expense. It has become an onerous burden for the family man. Medibank comes (he thinks) as some sort of relief. But, he is now a number fed into a computer, and the doctor is a servant of Big Brother. Education has never been free; there have always been expenses for books etc, even at State schools. The Church and other private schools are now receiving Government grants, and are thus able to keep their fees lower than they would otherwise be; but the price is gradual Government control of private Education - and private Education is anathema to the dedicated Socialist.

There must be only one Educator; and that is the State, Karl Marx's "Communists Manifesto" of 1848 laid down ten points for Communising a state, and one of them was "free education for all children in public schools": (our emphasis). If one substitutes the word - "indoctrination" for education the point becomes rather clear. So it can be expected that Dr. Jim Cairns will continue, in the short term, to keep the printing presses turning.

Actually, the printing presses are not turning any faster than they normally. What is happening is that more figures are being entered in the Government's ledgers in the Reserve and Commonwealth Banks, and this bank credit; over three thousand millions of it is made available by the banks to the various Government instrumentalities, departments, regions of council around Australia, etc., etc., and eventually these massive deficits reach the pockets of the individual consumers. This is the reason for the condemnation by the orthodox economists of massive government spending. They say that money is being pumped into the economy without an equivalent supply of goods and services to "back it -up" and that this situation will lead to greater inflation, and they mean demand inflation as there will be "too much money chasing too few goods". On the individual's current salary there must be wage increases, perhaps accompanied by strikes, and then these wage increases are pushed forward into costs, and so cost inflation also escalates. The music goes round and round!

But the situation is somewhat different to that, really. The inflation is there alright but the process is other than that propounded by the standard economists. Their approach is too simplistic (our turn to use this "in" word this time). The West is now in a period of what has come to be known as "stagflation"; a combination of industrial and commercial stagnation along with escalating cost inflation.

The 'Multiplier Myth' (or Velocity of Circulation Saga - cont.)

In order to think clearly about the velocity theory it is necessary to fix three points firmly in one's mind:
1). Almost every business works continually on credit in the form of a working overdraft.
2). Each "parcel" of credit money comes into existence as an overdraft, and exists only until it is used to pay off an overdraft.
3. Notes and coins are a substitute for portion of this bank-created credit money.

The velocity theory seems plausible enough if we think only of a dollar note travelling from hand to hand. But what we must remember is that when a businessman accepts payment of a dollar, only a small percentage of it belongs to him. This is his profit. The rest of the dollar goes to pay his various costs. This applies to each dollar, which he accepts. When he spends one dollar on his private expenses it is made up of a small percentage of each of the dollars he has received that day or that week. (to be contd.)