THE RHODESIAN 'SETTLEMENT'

"In his deal with the British Tory Government, Mr. Smith made concessions which surprised me". - Geoffrey Hutton in The Age, Melbourne, November 30th.

The Britain-Rhodesia rapprochement is an uneasy compromise brought about by the complex, finance-economic-political realities heaving below the surface. The principal reason for Britain's rather desperate desire to bring about a 'settlement' can be given in two words - Common Market! Mr. Heath, Britain's Prime Minister, has many serious problems on his plate as he prepares to 'lead' a very reluctant Britain into the European Economic Community. He is confronted by a Labor Party led by the wily, brilliant, Harold Wilson, who swears that he will fight the forthcoming Common Market legislation in the House of Commons, "Act by Act; Clause by Clause". Harold Wilson will most probably whip his own dissenters into line. Coming nearer to the knuckle Mr. Heath has the problem of his own "Rhodesia Lobby"; Tory Members who have the closest links with Rhodesia. Some members of this "Lobby" have considerable financial investments in that country, or have constituents, and/or close personal friends and relatives with the same interests.
The Bank of England froze all Rhodesian securities and deposits in Britain upon Rhodesia's Declaration of Independence in 1965.

Mr. Heath needs the support of this "Lobby" in the House of Commons to ensure the passage of the forthcoming complicated Common Market enabling legislation. The pro-Common Market forces in Britain, and elsewhere (the forces which are driving Britain into Europe are mainly international in character) want a Britain, which is on the verge of European entry, free of Commonwealth and Colonial 'entanglements'. The links between Britain and her Commonwealth and colonies are very strong, and hence a hindrance to the pro-Market forces. A danger also - these links are the basis of public opinion in Britain on the Common Market; and public opinion polls show that the British people are overwhelmingly against entry into Europe.

A subtle psychological 'attack' is now being carried on by the mass media (whose interests do they serve?) against the Commonwealth concept. There have been reports in the British Press of 'whinging Aussies'; there are the attacks on the national Flags of Canada (which has already been changed to Pearson's Pennant) and now Australia. We were recently treated on a television current affairs program to the spectacle of a most foreign-looking individual; with a heavy accent, telling us that the Union Jack must go, at all costs, from the Australian flag. All this is of a piece; all subtly and most carefully planned and organized.

From Rhodesia's point of view, the times threw up the opportunity, and no doubt it was decided to grasp the settlement now, even if some concessions had to be made. Under no circumstances will Rhodesia hand over political power, control of the country, to less sophisticated peoples: the result would be another Belgian Congo. The issue is survival of the white Rhodesians, who made the country what it is - and who are giving the native peoples of Rhodesia probably the best deal of any in Africa - and the white Rhodesians intend to survive.

The finance weapon, also, was a great spur which jabbed Mr. Smith into concessions: Sir Alec Douglas-Hume offered massive credits to allow the Rhodesians a way out of their balance of payments difficulties; a powerful inducement. Whether United Nations sanctions against Rhodesia will now be lifted is not clear. There are those who claim that the United Nations will ignore the Britain-Rhodesia settlement, our guess is that the U.N. will soft-peddle the whole issue for the time being; until after Britain's entry into Europe. Then it will be 'gloves-on' again, with all the Communist, Communist-oriented, and the 'emerging' African 'nations' howling for Rhodesia's blood.

MR. HAWKE OF THE A.C.T.U. LYING LOW?

"Why have Mr. Bob Hawke, and his mates in the A.C.T.U. arranged matters so that the national wage verdict will be deferred until next April or May? - Editorial, The Australian, November 26th.

On the 24th November the A.C.T.U. suddenly informed the Arbitration Bench and other parties, that it was not ready to present the normal two-pronged case for adjustments to the national wage and the minimum wage. The Australian, correctly, in our opinion, observes that the union leaders have engineered a deferment of the whole case. The Australian suggests that the reason is that the A. C.TU. anticipates that the economic conditions, which will prevail by February next, will dispose the Arbitration Commission more favourably towards increased award wages. This may well be one reason, but we doubt if it is the real reason. We suspect that there is an over-riding political motive behind this deferment - in short, a calm industrial front to pave the way for an A.L.P. victory at the 1972 Federal elections.

Mr. Bob Hawke underwent a remarkable metamorphosis after his recent visit to Moscow. The militant Hawke metamorphosed into an affable, peace-loving, strike settling, dove. We believe that the message has, at last got through to the left-wing of the A.L.P. that the Australian public have had strikes, and that industrial unrest, at present, reacts against the Australian Labor Party, although we can foresee the time approaching when this may not be the case. It is a matter of the correct timing, and in this, Mr. Hawke would have the best advice in the world - from the Masters in the towers of the Kremlin. This, we believe, is the real reason for the deferment of the national wage case, with the 'danger' of uncontrollable strike action boiling over if the verdict were not to the liking of the more militant unions.

It could well be that Mr. Hawke, and his Master Advisers, are banking on an early Federal election in 1972. It does not have to be held until November of that year, but if inflation maintains its present rate, or even worsens, and unemployment keeps on rising, as seems probable, then Mr. McMahon, the Prime Minister, would most likely seek an early election before a depressed Australian economy guaranteed the demise of the Government. We believe that it is now important to the Kremlin that a Socialist government, one that is hostile, to South Africa and Rhodesia; one that is hostile to the concept of the British Commonwealth, one that is 'soft' on Red China, one that will ignore, or even welcome the Russian naval build-up in the Indian Ocean - be installed at Canberra. Mr. Hawke, and the A.C.TU. are playing their part to bring this about!

INFLATION WON'T GO AWAY

"Ten economics professors yesterday called on the Federal Government to cut tariffs, sales taxes, and the long-term bond rate as an anti-inflation 'package' measure. - The Age, Melbourne, November 30th.

Even these economic experts have shifted their ground from their position of 4-5 weeks ago. Then they called for a revaluation of the Australian dollar; now, the situation is more "complex", and a many-sided approach must be made to the problem. Mr. Snedden, the Treasurer, will note that these experts reject as unworkable the notion of a prices and incomes policy. Professor Ronald Henderson of the Institute of Applied Economic Research at Melbourne University said that Federal politicians should not accept any salary rise; rather, the Professor advocated salary cuts for all; from the top down. Dr. Harold Bell, the A.M.P. Society's economic adviser, said that the Government's belief that demand inflation would be super-imposed on cost inflation was misplaced. (In other words, there is not 'over-demand'; there is 'under-demand': the economy is to be stimulated.)

Meanwhile, the world's monetary crisis remains unsolved, and we feel that the 'crisis' may last right through 1972. The revaluation of the Japanese yen, with Uncle Sam waving the big stick, is being greeted with satisfaction by Mr. Snedden (Treasurer) and Mr. Anthony (Leader Country Party) who think that the now more expensive Japanese exports and less costly Australian imports into Japan will be a wonderful stimulus to the Australian economy. We have news for them! They will probably find that this will not occur at all. What is more likely to happen is that the contraction of the huge Japanese export trade into the American market, by far its largest overseas market, will force the Japanese to restrict their production, and bring about a shrinkage in their whole economy - that will mean less imports from Australia, not more.
The world's economic foundations are shaking.

ON TARGET CHRISTMAS GIFT SUBSCRIPTIONS

LABOR LEADER AND FINANCIAL POLICY

"One home buyer in every four is now forced to outlay more than one third of his weekly earnings to pay off his borrowing for house and land." - The Sun, Melbourne, November 25th.

Writing in the Labor Says column, which is a statement of policy, the parliamentary Leader of the A.L.P., Mr. Gough Whitlam foreshadowed again that his Party will make a more fundamental attack on financial policy than has been attempted in the past decade by his Party. Dealing with Housing, and Local Government, Mr. Whitlam promised that a Labor Government would reduce the burden of debt. It is interesting to recall his attack on Mr. McMahon, when he quoted a speech made by the former Prime Minister, Mr. Gorton, which Mr. Gorton gave to the Blackburn branch of the Liberal Party. Mr. Gorton said "It is little use to dampen down demand by raising taxes and by increasing Government surpluses, which is the classic economic anti-dote to demand inflation. Such action may be as harmful as would be the action of a physician who treated a patient for an illness he did not have, and could well make his condition worse".

Mr. Whitlam reminded Mr. McMahon that he had praised Mr. Gorton in February for his wisdom and leadership in the fight against inflation. Mr. Gorton then interrupted and suggested that Mr. McMahon should read his Blackburn speech, adding - "I am sure that if he reads that speech his belief in my wisdom will be reinforced."

It is obvious that there is developing a situation which will lead to a more fundamental showdown on financial policy than any period since 1949. The powers that exercise their hidden influences behind government will rely on the manipulation of the party system of government to rob the individual of any worthwhile gains. We could well see a similar denial, in 1972, of Labor's present promises, as was given in 1949 by the Liberal-Country Party Government.
Only the emergence of a strong grass roots non-Party force will ensure that the promises made are promises kept.

ON TARGET BULLETIN

The Philosophy of Freedom

This alternate philosophy conceives of all power arising from within the individual. "The Kingdom of God is within ye". This philosophy conceives of the individual possessing both the intelligence and the free will to seek out, to discover the laws governing the universe, the principles necessary for satisfactory human associations, and then to apply what is discovered.
The individual is seen as possessing the attribute of creative initiative, and the capacity for self-development. Through self-development in different spheres, the individual spiritualises his life. This philosophy conceives of the individual as having certain inviolable rights, which cannot be taken from him by either "the State" or "majorities ".

The right to life is the most fundamental right. Because of the importance, which this philosophy attaches to the right of the individual to self-development, it naturally stresses that institutions and systems exist to serve the individual. "The Sabbath was made for man, and not man for the Sabbath". It was the coming of the explosive Christian revelation, which resulted in the progressive freeing of the individual from the domination of the group.

FREEDOM WEARS A CROWN