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| xx xx x xx xx   xx x x  x  x  x   x       Issue #7       |
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| x   x x x   x   x  x x  x  x  x       x   12/03/84       |
| x   x x x   x   x  x  xx   x  xxx  xxx                   |
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|    Newspaper of the Maoist Internationalist Movement     |
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SOVIETS MATCH U.S. DRIVE FOR WWIII
  The Soviet Union announced on November 27th that it would
match the United States' militarist strategy by increasing
its military spending 12% for 1985. The Soviets said they
"will not allow the military-strategic equilibrium to be
upset." (Chicago Tribune, 11/28/84, 1) The only parallels
for U.S. and Soviet military spending this century are prior
to World War I and II.
  Once again the Soviet Union demonstrates its view of
"detente" with the U.S.. This sick "equilibrium" is the
steady build up for World War III. Under the guise of
deterring the opponent both sides build up for war. The only
question that remains is when one side becomes so threatened
by the other's build up that it starts a pre-emptive strike
and WWIII. (For the dangers of the arms race and the causes
of militarism see the MIM literature list.)
  U.S. imperialism and Soviet social-imperialism are proving
themselves to be inexorably headed for WWIII. No weapons can
deter them. Indeed, the two economies thrive on sales of
weapons to allies and the Third World. The military has
become the pervasive and dominant portion of both economies.
  Inanimate objects can not "keep the peace." Only a
revolutionary change in social relations can prevent the
profit-driven collision of empires.

CHILE ROCKED BY PROTEST AMIDST CLAMPDOWN
  Even as the Chilean military rounded up thousands of
people for detention, exile and probable murder, 13 bombs
exploded in the capital of Chile--Santiago. Public
transportation was stopped by protests; women shouted
against the regime even as they were arrested; wives banged
pots in traditional protest; newspapers were boycotted and
calls were made for a stay at home strike. (Chicago Tribune,
11/28/84)
  Already the Reagan Administration fears "'another
Nicaragua.'" The U.S. has criticized Pinochet for not
managing his affairs with the proper smoothness. He has
alienated even bourgeois conservative forces with "his
excessive use of force." With the usual paternalism the U.S.
State Department played its God role in Latin America: "'We
want them to take some constructive steps to help themselves
before it is too late for us to help them.'" (New York
Times, 12/2/84)

AFL-CIO BUREAUCRATS LEND LABOR'S NAME TO OCCUPATION OF
GRENADA
  The Republican Institute contributed $20,000 to election
campaigning in Grenada. The American Institute for Free
Labor Development also put in "'$6,000 to 7,000."
  The Free Trade Union Institute has allocated more than
$80,000 to the "central labor movement" in Grenada to train
the people of Grenada in its future as U.S. neo-colony.
  This activity helps the U.S. government to coopt the
laborers of Grenada. It is no secret that the U.S. has sent
psychological manipulation teams to Grenada to manufacture a
political atmosphere favorable to the election and
maintenance of a U.S. puppet regime. The U.S.'s implicit
endorsement went to the New National Party as "'more
moderate than any group so far.'" (New York Times, 12/2/84)
Not surprisingly, the U.S. manufactured a "landslide
victory" in the election.
  U.S. dominance of Grenada is so important as an example to
the world that the U.S. has spent over $51 million in
"assistance" to Grenada. That includes $19 million for
Grenada's airport--now that its in U.S. hands, $4.4 million
of Agency for International Development money for a mental
hospital to replace the one the U.S. bombed in the invasion
and $2.5 million to train management in its job controlling
labor. Canada chipped in with $5 million for a cocoa program
and the European Development Bank has loaned $2.5 million
for electric generators. (San Francisco Chronicle, 10/31/84,
p. C5) The U.S. invasion has cleared the way for a massive
export of capital from the U.S. imperialist bloc to its new
hostage--Grenada.

ISRAELIS BOMB PALESTINIANS
  Israeli planes bombed supposed Palestinian bases killing
five Palestinians and two Lebanese in the Bekaa Valley.
(Chicago Tribune, 11/28/84) The Bekaa valley is held by the
Syrians and their factional allies of the PLO. The Soviets
man anti-aircraft missile batteries there.
  The attack is also significant because it targeted the
pro-Syrian PLO at the same time that the Western press has
been rebuilding Arafat's image as the leader of the PLO. The
PLO's National Council meeting supposedly gave Arafat a
decisive victory over pro-Syrian PLO factions.
  As usual another year of Israeli genocide against the
Palestinians was rewarded by Washington. Israel, the largest
recipient of foreign aid receives about 27% of U.S. foreign
aid or approximately $900 per person. For fiscal 1985 the
U.S. has already plunked down $1.2 billion. A total of at
least $2.6 billion is due. (Christian Science Monitor,
12/3/84, 8)

U.S. SINKS CLAWS INTO CHINA
  Since 1979, the U.S. has made $8 billion in direct
investments in the People's Republic of China. This is $2
billion more than China planned according to Beijing Review
boasts. (Beijing Review, 11/19/84, 9)

RECORD NUMBER OF U.S. BANKS IN TROUBLE: NEED WAR FOR
BUSINESS
  Despite a two year upturn in the economy, 797 banks
require government supervision. The number was only 385 in
the 1973-75 recession. (New York Times, 10/20/84, 19)
  The federal government recently forced two major banks--
Bank of America and First National of Chicago to recall some
loans and adopt tougher loan policies. The fact that this
was done publicly scares some bankers who are "'worried
about the public's perception of the seriousness of the
problem.'" (New York Times, "Bankers Fear Effects of
Regulators' Moves, 11/17/84)
  Although the bankers are afraid, they clearly have no
constructive solutions themselves so they are all going
along with government's pressure to make fewer loans. The
bankers know that the U.S. government acts in their overall
class interests. For instance, the U.S. government opened up
China to U.S. credits and U.S. investments. Even now, on
Reagan's trip to China he said "I'll go as a salesman, doing
everything I can up to the point of putting a 'Buy America'
sticker on my bag." This kind of business in the Third World
is an excellent chance for the multinational corporations
and the banks that do the financing to suck profits out of
the Third World. The solvency of the U.S. bank system also
prevents a massive Depression that would undermine the U.S.
government. The banks and government need each other. That
is why they cooperate in regulating each other.
  The banking practices hardest to regulate involve bank
loans to Third World countries. Obviously, inside the U.S.,
banks have legal recourse when loans are not paid, but
overseas it is not in the interest of U.S. multinational
banks to let governments go bankrupt. Indeed, the U.S. banks
have an interest in the economic well-being and political
stability of the governments that they have made so many
loans to. They are counting on the various Latin American
governments, for instance. Ultimately the banks must count
on the U.S. government to keep such countries in line
through war and the promise of further loans to stay in the
U.S. bloc and out of the Soviet bloc. They are so dependent
on the profits off of foreign loans that they often do not
expect to receive their money back on loans--only interest
payments.
  Bank America, First Chicago, Continental Illinois,
Citicorp, Chemical, Chase Manhattan, Manufacturers Hanover,
Morgan Guaranty and Bankers Trust have loans out to Latin
America totalling $54 billion. "That represents a disturbing
157% of the banks capital." (Time, 12/3/84, 59) Especially
after the 1973 oil crisis, Third World countries were
reeling economically. "Banks argue that their foreign loans
were encouraged by officials at the U.S. Treasury and
Federal Reserve. They feared that developing countries would
become economically and politically unstable if credit was
denied." (Ibid.)
  However, even increasing investments in the Third World
are barely keeping the banking system afloat. 71 banks have
failed in 1984 so far. That's the most since at least 1977.
(Ibid., 48) These failures are actually part of the policy
of the U.S. Government which is trying to weed out weak
banks. Deregulation, however, has only worsened the
competition amongst banks: "As they became free of much
federal regulation, banks began engaging in suicidal price
wars." (Ibid.) Such competition drives banks to make loans
to foreign countries; even though this means implicit
reliance on U.S. military force should repayment of loans
not be forthcoming. One former vice-president remembers the
day he and others decided not to make a loan to Denmark.
"Next day, however, a competitor stepped in to make the
loan." "'Within several months,'" "'the resistance of my
banking colleagues to sovereign lending gave way.'" (Ibid.,
49)
  The U.S. government is becoming all the more desperate to
find new sources of profits for U.S. business. The biggest
untapped source is the Soviet bloc. The banking system
problems compel the U.S. to go to war to open up and take
away part of the Soviet bloc for U.S. business.

YALE DIVESTS FROM THREE FIRMS IN SOUTH AFRICA
  Yale University was forced to divest $4.1 million worth of
stock in U.S. companies that operate in apartheid South
Africa. The three companies Fruehauf International Ltd.,
Black & Decker Manufacturing Co. and Amdahl refused to even
describe what they were doing in South Africa. They even
refused to sign the Sullivan Principles, which are a figleaf
set of guidelines that certify that a U.S. company does not
segregate its facilities and discriminate in salaries. (See
MIM lit. list on South Africa.)
  The ivory-tower has been rocked for the last year by the
actions of thousands of students protesting Yale's
investment in apartheid. That turmoil also broke out amongst
kitchen workers this fall. A strike by kitchen workers has
left Yale without food services. Undoubtedly Yale officials
fear the joint worker-student action that was so effective
in shutting down universities in the 60s.

SAN FRANCISCO ANTI-INTERVENTION RALLY ATTACKED BY POLICE
  Over twenty people were arrested during a demonstration on
November 8th against Secretary of Defense Caspar Weinberger
to protest U.S. imperialism's plan to invade Central
America. The pigs even attacked camera crews from the major
television stations. One cameraman said, "it was
frightening." But how else can the agents of the ruling
class cover up their actions and satisfy their masters who
are trying to escalate their war in Central America?
  In their escalating war by proxy with the Soviet social-
imperialists, U.S. reactionaries have no choice but to
stifle dissent. Like the "Clash" says, anybody who thinks
there is "freedom of speech" in this country should
"actually try it." Progressive people in the anti-
intervention movement should unite to work against U.S.
involvement and war in the whole world because we can not
solve the problem of U.S. imperialism in Central America
without overthrowing the pigs and their masters.

ANN ARBOR YOUTH STAGE RUNNING DIE-IN AGAINST NUCLEAR WAR
  Ann Arbor, MI--What started as a run-of-the-mill die-in
turned into an advanced action against nuclear war on
Wednesday, November 21st. High school and college youth,
including a contingent of punks marched around the
University of Michigan chanting "1, 2, 3, 4 We Don't Want
Your Fucking War!" Later when police tried to break up the
die-in at a traffic intersection the rejoinder "5, 6, 7, 8
We Don't Want Your Fascist State!" was added.
  The Peaceniks in the crowd sang "Give Peace a Chance," but
when the police pulled out their clubs the demonstration ran
from intersection to intersection in Ann Arbor disrupting
traffic and chanting the whole way. The faster the three
police chased the faster the youth disrupted traffic and
spread their message "Hell No, We Won't Glow!" So although
the group had the 60s idealism of the chant "Make Love, Not
War!," it also had the savvy to run from police rather than
turning the other cheek to be clubbed.
  Still, police singled out a major organizer of the event
for arrest. Even then, the crowd was advanced enough to
surround the police and shout "Let Him Go!" in unison. The
police were clearly afraid they had provoked a violent
demonstration, but there was no violence and police scurried
out of the situation and made their arrest. They arrested
one other later.
  150 participated in the strongest part of the running
march through the streets of Ann Arbor. 35 copies of MIM
NOTES no. 6 on the war in Nicaragua were sold to bystanders
and participants. The RCP, its youth group the RCYB and its
sympathizers also played a strong and positive role in
explaining why to run from police and the seriousness of the
situation in Nicaragua. (For criticisms of the RCP, see the
MIM lit. list.)

WHY THE U.S. IS ESCALATING FROM "SECRET" WAR TO OPEN WAR
AGAINST NICARAGUA--EDITORIAL
  The U.S. has made plans to bomb; quarantine and or invade
Nicaragua in the first place to counter the Soviet social-
imperialists' "interests" in Central and Latin America. The
pro-Soviet and pro-Cuban elements of the Sandinista
government are a direct threat to U.S. control in its
"backyard."
  Several U.S. companies still make super-profits in
Nicaragua. They are in "unfriendly" territory and aware of
the threat posed to them. Bank of America, Texaco, IBM,
Quaker, Monsanto, Nabisco, Colgate-Palmolive and Chevron all
have immediate interests in Nicaragua. A San Francisco radio
station also announced that Bechtel Corporation (the Reagan
Cabinet) has had plans in the works since 1976 to build a
canal through Nicaragua to replace the outmoded Panama
Canal.
  Central America is really oil in the U.S. war machine. It
provided the machine an easy victory in Grenada. Nicaragua,
should it be invaded has a population about one twentieth
that of Vietnam. Thus Central America is like practice in
the "backyard" for U.S. imperialism. It is a chance to
hypocritically complain about Soviet maneuvers for
domination; to argue that U.S. economic interests are at
stake; to whip up racist-colonialist sentiments against
Third World peoples who supposedly need U.S. help in
government. Above all it is a place to show that America can
"stand tall" and "prevail"--meaning win and set an example
to other Third World countries. The U.S. will try to
straighten out its bloc as much as it can before going into
direct and more intense war with Soviet social-imperialism.
Another defeat in Central America would be a real blow to
the U.S. imperialists' larger ambitions in Europe and the
Mideast.
  However, we can not have the illusion that vigils,
petitioning Congress and other reformist tactics will be
enough to overcome an aggressor determined to redivide the
world. Our strategy must have an international perspective.
Only through solidarity with the people of the world and by
challenging this whole system will we have the power to
overcome imperialism and world war.
_____________________________________________________________

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