Tuesday, April 14, 2020

Pay As You Learn (1951)

From the April 1951 issue of the Socialist Standard

It must be obvious to most that in the world today the Western and Eastern powers are antagonistic toward one another. The gymnastics of the Four- Power deputy Foreign Ministers in trying to arrange an agenda in Paris recently, both side striving to get that which is most favourable to themselves, is an example of this.

Since the end of the hot war in 1945 there have been many conferences. But under the lofty tones of Peace, Freedom and Democracy that leader writers love to tag on them, the points under discussion have been the old ones of access to markets and sources of raw materials.

At the same time however, the business of Capitalism continues. Despite the recognition by the government that Russia may in the future be an enemy of war, trade still exists between the two countries.

In point of fact the good old “Allies” themselves whilst trying to re-arm and run “business as usual ” come into conflict. On March 3rd, 1951, Mr. Strauss, Minister of Supply, and Mr. Wilson, President of the Board of Trade, journeyed to Eastbourne to speak to some 500 or 600 industrialists at the Dollar Convention, organised by the Dollar Export Board. In their speeches they were both concerned with the supply of raw materials.
  "Mr. Strauss denied that the Government had failed to guard against scarcity of raw materials.
  Long term agreements with Rhodesia and other Commonwealth countries had assured British imports of copper, aluminium, and nickel for ‘a long time ahead.'"
   "Mr. Wilson agreed that ‘the raw materials problem constitutes far and away the gravest of all the economic problems we have to face in 1951.'
    He said that upon the outcome of the current Washington talks on international allocation of raw materials very largely depended the ability of this country and its partners in the North Atlantic community to maintain industrial production and the defence effort. Anxiety over future supplies of raw materials to industry, rather than the state of the country’s balance of payments with America, has unquestionably dominated all the discussions." (Observer 4/3/1951).
The Observer's correspondent Nora Beloff reporting on the Washington talks referred to by Mr. Wilson says
   “British officials are highly sceptical of the outcome of the commodity talks now starting in Washington. They believe there is little chance that an assortment of technical committees can reconcile the split between the British and American views on the remedies.”
(Observer, 4/3/51)
These highly competent, clever types, have come to the conclusion, that, when allies are re-arming against a common enemy (guess who) it is perhaps, just a little foolish to scramble against each other for raw materials, and thus send prices bomb-high. Both Britain and America claim that they are prepared to accept controls on prices and distribution. At the same time, however, both claim that the other is responsible for the situation today. For example, America is "niggly" at the price of Malayan rubber and tin, and Australian wool The British reply is that to control prices, America would have to contract to bulk-purchase from these countries over a period of years. To this the Americans say, that Congress, which has only two years to run, could not accept anything that might tie the hands of its successors. The British representatives in pressing for long term agreements recognise that the boom period of to-day in these countries and commodities will not last for ever.

A report of the Preparedness Sub-committee U.S.A. Senate analysing domestic and world tin supplies says
  “That control of most of the world’s tin reserves was held by a relatively few British. Dutch. Belgian and Bolivian corporations with interlocking connections across national boundaries!
   The report alleges that for the past 30 years these producers had joined to restrict production so as to ensure a satisfactory price, and that frantic speculation had driven the price of tin from 75 cents just before the Korean war to nearly two dollars a pound.”
(Observer, 4/3/1951)
The report concluded, “We are no longer in a position where we must buy tin at any price." The truth of this statement appeared four days later when the City Editor of the News Chronicle (8.3.51) reported that tin had fallen by £125 to £1325 per ton.

Whilst at home the present meat ration forces vegetarianism upon us, the Australian Meat Board have just published figures for the half year ending December, 1950, showing that, compared with 1949, the exports of lamb to Britain fell from 2375,000 carcasses to 521,000. The reason of course being the high price of wool. So even the Tories and Empire wallahs (must help the mother country of our great commonwealth you know) when faced with the economic realities contained within capitalism dive in and make a kill, though not the lamb of course.

At home almost daily the Government announces further restriction and shortages, everything being subjugated to the demands of the re-armament programme. It must be a very naive person who does not comprehend that ultimately these highly costly arms will be used in another world war—whether you call yourself an aggressor or defender.

Of course as usual, “we" must all play “out” part in paying for this Defence programme. As Mr. Gaitskell like his predecessor is never tired of telling us. Trade Unions are asked not to ask for wage increases, not withstanding the increase in the cost-of- living.

If you acquiesce in the continuance of capitalism, and accept the possibility of a third world war, then some of you will pay with your lives.
Ray Guy

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