Crisis summit in Bonn
Sahara countries, Mozambique, Angola,
Ethiopia, Bangladesh, etc.), the leaders of only a few their conclusions: "The flow
Year by year, the summit meetings of the heads of state and government of the principal Western powers point up the extent of the crisis shaking the capitalist world. Not only did the meeting in Bonn trom May 2 to May 4 confirm these tendencies but it marked a new stage in the crisis of
The specific interests of the various national ruling classes clashed so gravely that no accord, not even a formal one, was reached on the main points under
The reason for this is that the economic upturn that began in 1983 and 1984 is showing the first signs of running out of
United States, had been the locomotive of the expansion, a growth rate of 1.3% for the first quarter of this year points to a 3% annual decline comparison with 1984. This is the of the mechanisms that produced the expansion of the last two was stimulated essentially by a pyramiding of the budget deficit in the imperialist citadel (200 billion dollars a year for the last four
To prevent this deficit from leading to runaway inflation, Reagan has sought to attract a mass of foreign capital looking speculative order to achieve this, the US administration has had to keep interest rates high, bringing on an up-valuation of the dollar detrimental to the economic equilibria of the other imperialist powers.
While in the beginning this policy made possible a revival of production in some sectors, it also inflicted disastrous results on the overall of the other Western countries.
The rise of the dollar in fact made US industrial goods less competititive by comparison with those of other Western countries. In 1984, US imports the Gross Domestic Market Product of France (341 billion
In trade with Japan, the US has a deficit of 37 billion exports of industrial manufactures from Third World countries to the US in fact exceed American exports of such goods
This development is generating a chain-reaction effect on American industry. Firms such as Caterpillar, Ford, Du Pont, and Good Year are closing some of their factories in order to redeploy
Such is the context that explains the main proposals Ronald Reagan made in Bonn - the opening of multilateral trade negotiations with the aim of elimand regulations that the markets of the competing
The first question mark in this respect is the West European agricultural policy, which depends to a large extent on export aid to cover the difference between the European and world-market prices. This US agricultural interests, who in the first half of this year have lost twelve contracts for the sale of wheat representing a value of 255 million dollars.
Reagan's proposals in this area ran place on the European market for agricultural products and second place on the world market. If the US president's proposals were implemented they would lead to the loss of 40 billion francs [more than 10 billion dollars] for France, that is, the equivalent of twice the country's
On this question, therefore, Francois
European partners and break with the tradition of submission to Reagan's diktats followed up to now by French governments. Mitterrand's determination was all the greater because team in Washington could not offer him any quid pro quo in terms of lowering the interst rate.
This year, the US budget gap be still larger than the one in 1984, and will combine with a larger trade deficit. So, for the White-House, the only way out remains a dear money policy, despite the threat it poses for the international upturn.
While the Western leaders could not reach an agreement policies, they nonetheless could note the convergence economic strategies. The final statement of the Bonn Summit noting the "specific - priorities" of every country points up clearly that the Seven are united on the essential things austerity for the workers, pursuing industrial restructuring, social spending, and financial aid for the owners of the means of
In summing up the results of the May of resources, including public development, should be maintained, and if possible, increased for the poorest
The lack of content in the statement of the Seven in this respect is in no way accidental. The vagueness was designed to conceal the increased underdeveloped countries are suffering.
report of the Bank for International Settlements (BIS) in Basel just highlighted the cynicism of international financial groups. It notes, for example: "In 1984, through international banking sector, there transfer of resources from countries outside the zone to the rest of could hardly be clearer, underdeveloped partially financing the crisis whose source centers. The dominated countries find medicine by the IMF (largely controlled by the US), but they are getting nothing in return, not even in terms of bank
Mitterrand will no doubt try to make the maximum political capital from his building up his Gaullist image and trying to refurbish his reputation a bit with the "people of the left."
An attentive study of the impasse in Bonn shows, however, that Mitterand's policy continues to be dictated by a determination to serve the French bourgeoisie in the best way possible. Ronald Reagan (DR)
International Viewpoint 20 May 1985