tion of the Iran arms sales.
If the US goverment is plunged into its biggest internal crisis for six years it is for quite different reasons than the officially publicised ones. If section of the US Congress press now making scandals around the Reagan administration and they are - It 1s nol because they are shocked abetion an eleranian with sections of the government, or because of reactionaries fighting the Nicararaguan government anymore than Watergate was about the fact that US politicians were shocked by the fact that Nixon bugged his opponents phones or carried on illegal cover ups.
The real strains now wracking tale US 40 -ministration may be seen LOOKIN how the crisis developed - because It is clear that the political crisis broke out before the revelation of the arms sales to Iran.
The crisis was already clearly registered in FORGET THE rhetoric that the Reagan administration has suddenly been plunged into crisis by revelations about the illegal supply of arms to Iran, or the legal funding of the Nicaraguan contras. The US ruling class has its own way of dealing with that type of everyday scandal if it wishes. The world already knew the contras were being funded illegally anyway - it has been in every newspaper for five years. A few heads could have quietly rolled over the revelamid-term congressional elections. In these Reagan staked personal prestige and campaigned the country. outcome ves that the totally idensuffered ti worst cieciorai defeat for six years - being reduced to a minority not simply in the House of Representatives but in the Senate. The crisis over Iran then blew up month following the election.
The unpopularity of the administration's policies other words preceeded the revelations over the Iran arms sales. Iran ne crisis occassion fo crisis rather than its cause. If there had not heen the crisis over Iran some other pretext would have been found.
The most powerful development now weighing down the administration, feeding the an Europe, and waderly for a trade wa defeat rapidly deteriorating international position US economy. The Reagan have greatest period economic ad US history. The economic chickens are now coming home to roost. It is that which is now provoking a crisis of the Reagan administration.
The driving force in the expansión the economy under has been the rapid rise in military spending. Following the disasters of the Nixon, Ford and Carter rears — with the defeat i vietnam, the overnrow o Portugese rule in Southern Africa the overthrow Shah of revolution in Nicaragua -Reagan set the US course to try to revive its position massive increase in military might. The problem was that neither the gave forces in the United States build up to be paid for by r by to Sz2l billion last rare. - last year the US became capital in the US the dollar had to be maintained at a exports any country in history industry are being crushed by international competithe first time for six years divy. revalanlon. wil rese Winer foreign policy needs.
But the economic crisis SCTIOUS ICasUl. port for the 'reform' toll on irrigation channels, companied by a certain controlled liberalisation' moves were resisted by sections of the bureaucracy which favoured more centralised planning. is also evidence they were far harder to apply in in- where their consequences would be unemployment, and increased differentials within The student protests have expressed their supmeasures and lor himself. According to John Gittings in The Guardian, 3 January, the early protests at Hefei were associated with Deng's trend within the Party.
In addition to pro-Deng slogans the students have demanded that the democracy be real. They have also raised demands against the system where in them ployment and demanded Deng's opponents are openly fighting within the party, pointing to popular dissatisfaction caused by increased wage dullerentials, corruption, and policies; to the massive $7.6 billion trade deficit, caused by the influx of foreign consumer durables They also point to the problems in the previously successful agricultural sector which for the first time is seeing a decrease in grain production as peasants switch to more protitable produce, decrease in central investment which has taken its Becauselor smaller household allotments become basic pro'Conservatives' have been prominent in opposing the students in the press - which has prompted the ritual newspaper burnings.
government bureaucracy are looking to the CCP's thirteenth party congress in October of this year, which will assess the last ten years successes and failures and plan for the next decade. Both certainly oppose street mobilisations which escape their control -and most of all demonstrations which may link up
Socialist Action 9 Jan 1987
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papelarity of Reagan's before were desting
Iran and Nicaragua, to come out of the present