Debts pile up

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MEXICO'S ruling 'Institutional Revolutionary Party' gave proof of some remaining radical nationalist vigour last Wednesday when it nationalised all private banks, imposed total exchange controls, and froze all US dollar accounts in Mexico.

The measures were in response to Mexico's foreign debt crisis. Announcing them, President Lopez Portillo declared: "The banks have looted us. Mexico is not finished. They will not loot us again"

The banks have indeed made huge profits during Mexico's recent feverish economic expansion. And recent flows of capital out of the country - which will now be blocked by the exchange controls - have helped create the state's economic crisis.

But the parallels with the radical nationalist policy of the late 1930s - when the oil industry was nationalised - are limited. Full compensation will be paid to the bankers, all deposits will be safe, and foreign banks are not touched.

Similar to the 1930s is an effort by the nationalist bosses to get the working class to drop its own independent demands for the sake of the 'common' nationalist The Financial Times (September 4) reports. "The Mexican government seems to have secured trade union agreement to a freeze of wages, or only minimal increases, in return for the nationalisation and the exchange controls. This may help keep the inflation rate to less than 90% this year. [But what will it do for workers' living standards?] "Sr Fidel Velabquez, the veteran leader of the Confederation of Mexican Workers - the main labour organisation, with about three million members - has started to tell workers that they must not expect a wage increase like that of 30% granted after a 40% devaluation of the peso in February"

This support from the unions is important for the government in order to meet IMF austerity conditions.

AS THE Bignone government continues negotiations with international bankers over Argentina's huge foreign debt, the Air Force high command has intervened, opposing the talks.

The air force commanders, in a public statement last weekend, urged the government to break off talks rather than yield to pressure from Britain to lift economic sanctions and to declare a formal end of hostilities over the Falklands/Malvinas. This TWO THIRDS of Bolivia's export income - of its 'offi. cial' export income, anyway, leaving out the illegal cocaine trade - is eaten up in servicing its foreign debts.

Over 60% of Brazil's export income goes the same way, over 50% of Argenthighlights the continuing crisis in the military regime.

Meanwhile the Argentine Communist Party has succeeded in getting 35,000 to its latest public rally. The policy announced at the rally was one of critical support for the Bignone government. The Argentine CP has had a semi-supporting attitude to the military regime for some years because of the regime's good trade relations with the USSR. ina's, and about 40% of Mexico's. And the total debt outstanding from four countries - Mexico, Brazil, Chile, Argentina - exceeds the: whole national income of Brazil.

Brazil, Argentina and Mexico were all, at one time or another in the 1970s, to The five African 'frontline' states involved in South Africa's war against SWAPO in Namibia have unanimously rejected a suggestion than Cuban troops should be withdrawn from Angola as part of any settlement.

South Africa bas repeatedly demanded a Cuban withdrawal _ while itself launching raids and invasion forces deep into sites for multinational investment and new industrialisation. They built up debts on the prospect of continued rapid growth.

Now that the world economy has stymied growth, the debts are running far ahead of these economies.

stay Angolan territory. and sponsoring the reactionary Ángolan guerrilla forces of UNITA.

Plainly the frontline states • Angola, Zambia, Mozambique, l Zimbabwe and Botswana • see the Cuban presence as some form of protection of their bordere against more such aggression.

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Socialist Organiser no. 99 September 9 1982 Page

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one extent or another, prime Cubans ba