ANOTHER SURRENDER TO WISHFUL THINKING IN NORTH AMERICA

Mr. Eric Butler reports after a short lecturing and fact-finding tour of Canada on his way to the World Anti-Communist Conference in Korea
It sometimes appears that the capacity of the human being for wishful thinking, completely divorced from reality is unlimited. The Canadian financial journal informs its readers in big headlines that "A Glowing U.S. Economy Radiates Its Warmth North". The story, from Washington, says "confident, buy-happy customers are expected to contribute to a 6 per cent annual rate increase in gross national production for the first quarter of this year. American car sales have increased substantially. And the reduction of the inflation rate to under 10 percent is hailed as a major national achievement.

One certified economic expert seriously states in his best gobble-dee-gook that "the momentum which the economy now has underneath is very solid", and that there are "no signs of structural imbalance in the recovery". Canadians are being informed that, although the current inflation rate is higher than that of America's, they can look forward with warm anticipation to benefiting from the American "recovery".

In the meantime Prime Minister Trudeau's Anti-Inflation Board bureaucrats are producing an increasing number of industrial explosions by attempting to force wage earners to accept wage increases below the increasing cost of living. Even the police in Frederickton, New Brunswick, have resorted to strike action over wage claims. Other police are threatening to do likewise. Prime Minister Trudeau is heading for the same type of direct confrontation with the Unions, as is Prime Minister Fraser in Australia.

Under present Fabian Marxist policies, even the most rigid policy of controlling wages and profits can only have a temporary effect on rising prices. And ultimately comes yet another major explosion.

The truth about the American situation is far from "glowing". A severe credit squeeze was applied in a typical Keynesian-type move to "control" inflation. The results were catastrophic. Thousands of business organisations were sent bankrupt. Tens of millions of dollar debts had to be written off. Unemployment rose to the highest level since the end of the Second World War. The whole of the American radical movement was given a new impetus. Not surprisingly, there was reduction in the rate of inflation, but only to one which ten years ago would have been greeted with screaming headlines about a "Major National Disaster". But what would have been a national disaster ten years ago is now hailed as a tremendous achievement!

The conditioning process has gone much further than is generally realised. If the restrictive American credit policy had been maintained any longer, it would have produced an open revolutionary situation. And, of course, 1976 is an election year! Therefore an expansion programme has been set in motion, one, which hopefully will not increase the inflation rate once more until the elections are safely over. But it is as certain as the fact that Dr. Henry Kissinger will continue with his pro-Communist policies, that the inflation rate will be increased again - and with greater revolutionary effect.

One of the more chilling aspects of the American situation is the increasing dependence upon the Communist nations. "China Spotlight", a Bank of America publication, informs us in its February issue that "Negotiations for millions of dollars worth of high technology oilfield apparatus are currently underway between Peking and half a dozen specialised Houston-based equipment companies." Kissinger's policy of exchanging American technology for Chinese crude oil will undermine any American policy designed to provide energy independence.

American Treasury Secretary William Simon, a Kissinger-Rockefeller man, writes, with obvious relish, in the January issue of Treasury Papers that "In 1971, total U.S. exports to Communist countries amounted to less than $400 million. In 1974, exports were $2.3 billion, a more than 475 percent increase in three years". Mr. Simon went on to show that America's "trade surpluses" with the Communist countries had increased by 665 percent in three years, commenting, "The favourable impact of this trade on our balance of payments and on the U.S. economy is obvious".

The essence of what Simon is saying, is that the American economy can only operate successfully if Americans send a flood of exports to their Communist enemies and only receive a trickle of imports in return.

While those providing the credits, the Rockefellers and their associates, regard this form of national economic bloodletting with satisfaction, it is a policy of national suicide. But Mr. Simon argues, "Lost U.S. exports means lost jobs in our export industries... " So financial credit is expanded to put the American economy to work on behalf of the Communists.

Having built up the Soviet, now Communist China is also to be built up. Those promoting this clearly aim to create what they are pleased to call One World. Such a world would be a totalitarian world. This is the central question now facing what is left of Civilisation and one, which will be discussed at the coming World Anti-Communist League Conference in Korea.

THE REAL GOVERNMENT IN AUSTRALIA

On March 13th, The Australian produced a full-page supplement entitled "A Taxpayers' Guide to the Treasury". The first two paragraphs are significant: "The 13 top officials of the Federal Treasury have more influence over the economic lives of Australians than any other comparable group in the community. Together with the Treasury subsidiaries, the Reserve Bank and the Taxation Office, these men decide the economic atmosphere in which Australians will live and work. While traditionalist politicians may deny this assertion in the mistaken belief that bureaucrats merely follow the orders of the political masters, the evidence of the past three years, and indeed the previous 23 years reinforces the conclusion that these men occupy the seats of real economic power in Australia".

The League of Rights has asserted for a considerable time that politicians of all parties merely toe the line to the decisions of those in the permanent bureaucracy. Elected representatives have become the P.R. men for their own departments. The non-committal, evasive and often identical answers that are peddled out in reply to letters from electors confirm this suggestion. Now, to openly confirm our previous suspicions, the Treasurer, Mr. Lynch, has provided all the evidence needed. On March 17th, 1976, Mr. Lynch circulated to all Government Members and Senators a two-page document headed "

CORRESPONDENCE ON CONSUMER SUBSIDIES ('THE PETERSEN PLAN')"

Too long to quote here, the opening and closing paragraphs are significant:
"I am aware that many Members and Senators have received letters from their constituents asking the Government to give consideration to a scheme of Consumer subsidies as part of its anti-inflation strategy...

and, to conclude
"In the light of the foregoing comments I have attached a brief form of words which reflects the Government's views and which could serve as a useful basis for responses to letters on this general question".

Attached to the two-page circular was a sample letter - even including alternative paragraphs - that could be sent by parliamentarians to those who had written to them. The criticism in the circular was so shallow, inconclusive and biased as to be completely misleading. Nowhere did it mention that Sir Robert Menzies, Sir Arthur Fadden and Sir John McEwen had based their 1949 "shillings-back-into-the pound" policy on Price subsidisation. Nowhere did it mention that this policy was once included in the platforms of both the Liberal and Country Parties. Nowhere did it show what effect was obtained during the war through this counter-inflationary measure. The most frightening aspect, however, is the evidence that the correspondence of electors is dealt with in this way. There is no room for independent thought or conscience in a system where inquiries are dealt with by a departmental circular. Which Treasury official prepared this "instant answer for ignorant politicians?" Would it not be simpler, and less hypocritical to set up a special department to answer letters from voters and taxpayers? What need for elected representatives, when faceless bureaucrats can provide us with all the answers?

ANOTHER PROMISE BETRAYED

"Despite Prime Minister Malcolm Fraser's election promise that his government would not give money to 'African terrorists', it has channeled aid to an African liberation group. It has just given $25,000 to the U.N. fund for Namibia (formerly South West Africa). The fund is used to prepare Namibians to govern the rich mineral area south of Angola that is currently occupied by South Africa... " The Bulletin, 24/4/76.

The article goes on to say that SWAPO, which also receives aid from Russia and Cuba, is one of the recipients for the Australian donation. The money is paid through a fund administered by the UN Council for Namibia. Russia is the only major power on the Council, of which Australia is a member. The Bulletin continues: "When the Government changed in Canberra on December 13th there was speculation that the coalition would quit the Council. But in New York on March 16th of this year, Foreign Affairs Minister Peacock discounted this. Australia would remain a member, he said.

MOMENTOUS QUEENSLAND DINNER AND SEMINAR

THE NEW SOUTH WALES STATE ELECTION