Friday, September C, 1974 THE MICHIGAN DAILY Page Nine-B, THE LABORITES FACE VERY HARD TIMES Britain s By ALLAN BARKER LONDON (Renter) - Biritain is preparing for its second general election of the year anxiously looking for firm govern- ment to overcome one of the gravest economic crises in its his- tory. Prime Minister Harold Wilson has headed a minority Labor administration since the last election six months ago but con- tends this has been too precarious to be fully effective. He is soon expected to announce an October polling date in the hope of obtaining a working majority in the 635-seat House of Com- mons. THE OVERRIDING issue in the campaign, already unof- ficially under way, is raging inflation and how to cure it. Despite still unresolved questions concerning Britain's rela- tionship with the European Common Market, this will be an inward-looking election battle likely to be decided on bread- and-butter issues. Britons are deeply worried about the falling value of the pound in their pockets as prices rise inexorably in the shops. They are unenthusiastic about having to vote again so soon, and skeptical whether the old-established parties and familiar cast of political characters have the answer to the nation's desperate problems. WILSON will be fighting his fifth election as Labor Party leader, Edward Heath his fourth as Conservative chief and Jeremy. Thorpe his third at thethead of the liberals. None of them inspire much obvious confidence in a cross-section of the electorate. But despite the feeling of many people that they have seen and heard it all before, Britons also recognize that this could in flation overshadows elections be a crucial election for the future of the country's long-standing two-party political system and even for British parliamentary democracy. The present inflation crisis is not peculiar to Britain, being shared by other countries such as the United States, Japan and Australia. But Britain's economic problems seem more menac- ing than the country has faced for many years. ON EVERY side there are warnings that economic reces- sion could turn into something far worse if inflation is not stemmed. Because of higher oil prices and a stagnant economy, Brit- ish living standards are already beginning to fall. The economic background to the coming election includes: prices rising by 18 per cent a year, a balance of payments deficit on dealings with the rest of the world of 9.6 billion dol- lars, this year, unemployment rising towards the million mark, business confidence at rock bottom, the stock market lower in real terms than in the 1930's, and investment plans of many big firms in abeyance. EXTREMISTS of both left and right are being heard. Some leftwing union leaders openly advocate a fundamental reorgan- ization of British capitalist society to end "exploitation" of working people. On the right, private armies are emerging ready to sup- port the government of the day against strikes thattmight undermine the civil power and cause a breakdown of law and order. The Labor government and its supporters denounce "hys- teria" about Britain's plight and suggest political bias by news- papers and the broadcasting corporations, traditional "allies" of the conservatives. They claim the media is dominated by middle and upper class intellectuals fearful of loss of privilege and that ordinary working people who stand to benefit from a more egalitarian society are never heard. vital in deciding whether either of the main parties gains a majority. Public dissatisfaction with the class-oriented politics of Labor and Conservatives saw the Liberals notch six million votes in the February 28 poll. But under the British constituency system of winner-take- all rather than proportional representation, they have only 15 seats in the House of Commons, including one recent Labor defector, Christopher Mayhew. Labor now has 297 seats and the Conservatives 295. THORPE, youngest of the three party leaders at 45, hopes the Liberals can increase their votes to nine million this time and at long last break the 50-year dominance of the Labor and Conservative Parties. It was the Liberals who cost the Conservatives victory last time. Their first task now is to convince the people that those six million votes were not wasted and that the Liberals are an effective force. The latest opinion poll showed Labor in the lead, 51/2 per- centage points ahead of the conservatives, with the Liberals holding their place with 19 per cent. BUT THE poll indicated that there is no guarantee Labor will be returned to power with a working majority. Laborhasconsistently refused to weaken its socialist prin- ciples for the sake of joining a coalition, and if it fails to get a majority Wilson might preferto leave the job of governing to the Conservatives and Liberals. Heath and Thorpe have similar views on the need to stay in Europe and both believe a legally enforceable incomes poli- cy should be held in reserve if all else fails to stem inflation. They failed to agree on a marriage immediately after the last election, but Heath has already thrown out new overtures in case of an indecisive result in October. K_< LABOR'S chief spokesmen, Wilson, Employment Secretary Michael Foot and Chancellor of the Exchequer Denis Healey all IS t Y° . say Britain can reach economic stability and further prosperity if it keeps its nerve and pulls together. After all, by 1976 North Sea oil will be flowing in quantity e to Britain's shores, providing a valuable new asset with which to pay back debts accumulated in these trying times. Wilson thinks Labor can win the election comfortably on the record of what it has accomplished in office - ending of } } last winter's damaging coalminers' strike, comparative indus- trial peace since then, higher pensions. reform of trade union laws, and introduction of food subsidies to hold down the re- tail price index: THE OPPOSITION Conservatives contend that Wilson wants an election now because the economic situation will be much worse next year, and say he would not win after this fall. HEATH AND WILSON: In an atmosphere clouded by pro- They picture Labor as dangerously lenient to its left wing phecies of a full-scale economic collapse, the long-standing and to the big unions, and of making no attempt to curb mis- leaders of oCnservatism and Labor prepare for another bout. use of union power. Despite detente, U.S. citizens in M oscow ea rei HEALEY AND THORPE: Defense minister Healey says Wil- son's policies will eventually strengthen the sagging economy, but Liberal candidate Thorpe warns that continued hard times will trigger a wave of repression from the far right. Having rejected the statutory incomes polity of the pre- vious conservative administration, which the unions rejected, Labor is putting its faith in its so-called social contract. THIS IS an unenforceable agreement in which the Trades Union Congress has pledged its members to show restraint in negotiating wage deals in return for government measures to make society fairer. The critics of the government say the social contract is a mirage, that wages and, inflation will skyrocket and that pow- erful unions will protect their members at the expense of the rest of the society. Before very long, say the pessimists, the whole economic edifice could collapse in ruins. Thorpe says that if the political leaders fail to stop infla- tion, others will step in with more painful methods of repres- sion. MICHAEL FOOT, the most left-wing member of Wilson's cabinet, says voluntary methods are the only way in a demo- cratic society and wage controls have never worked in the long term. Another big issue in the election will be Labor's plans for nationalization - the taking into state control of more firms and new sections of industry in the hope of improving invest- ment and overall planning. Big business is determined to fight any large-scale exten- sion of state control as outlined by labor's leftwing industry secretary, Tony Benn. THE CONSERVATIVES accuse labor of having seriously undermined business confidences-with its nationalization propos- als, which they say would wreck the economy. Sensing possible electoral damage, Labor ministers have reaffirmed their faith in a continuation of Britain's traditional mixed economy, with a healthy private sector. Labor says Benn is being made into a scapegoat. Labor's efforts to renegotiate Britain's terms of entry into the European Common Market will also be an election issue. Heath, the champion of the European connection, has accused Wilson of undermining prograss within the community and creating business uncertainty at home by vacillating on Europe. BUT BECAUSE any results of Labor's' renegotiation effort will not come until next year, the European question is not likely to influence the election outcome very much. The voter appeal of the Liberal Party, however, could be FREE' WITH COUPON One double load of Laundry in our WASCO JR. Washing Machine. WASHERS and DRYERS ALL NEW EQUIPMENT COIN-OP DRY CLEANING 4 lb. Mini-loads' 8 lb. Regular loads y$I ~OPEN 24 HOURS .4.< ALWAYS ATTENDED I aI *sMr. Stadium Coin Laundry & Dry Cleaning 1958 S. INDUSTRIAL. HWY. South of E. Stadium Blvd. - 668-7928 # GOOD FOR ONE FREE DOUBLE LOAD OF WASH Name Address-_ Limit-one coupon per person EXPIRES SEPTEMBER 13, 1974 Detente hasn't filtered down to about 456 Americans living in the capital of the Soviet Union. They're still in small-town iso- lat ion, closely watched, permit- ted little travel. The assignment, most agree, is important, butI the problems are big ones. By LYNNE OLSON MOSCOW () - A Soviet offi- cial, chatting with an American diplomat at a reception here, enthusiastically recalled how heI once was invited to spend a weekend at an American's home during a stay in the Unitedc States. "Why doesn't that ever hap- pen here?" the American asked. His question was greeted by si- lence and a hasty change ofi subject.1 THE SPIRIT of detente -of Americans and Soviets comingc closer together - hasn't muchj touched the daily lives of 450c Americans who live in the So- viet capital. Like the rest of the foreignf community in Moscow, Ameri-1 cans are kept isolated from the Soviet people in almost all as- pects of life. Most of the 135 AmericanF embassy personnel, 23 journal- ists, 15 businessmen and their families live in apartments in, foreigners' compounds scattered. through the city. large cities of the Soviet Union. WHETHER pale brick high- These are the only Americans'] rises or small stucco buildings, outside Moscow.I the apartments are guarded by Since the first Nixon-Brezh- Soviet militia men, who stand nev summit meeting two years in small guard boxes and closely ago, the embassy had added ! observe who goes in and out.; about 25 new staff members One of the policeman's main and the press corps has one new; jobs is to keep unauthorized member-U.S. News and World Soviet citizens from entering Report opened a Moscow bureau the buildings, this year. "The day they remove the 'THEaMAJOR growth explo- militia boxes-that's the day of sion has been in the business. change," said an American cor- community. Before December respondent. 1972, only two American com-I Isolation is not a new feature: panies-American Express and of the Soviet regime. Foreign- Pan American Airways - had ers have been kept apart from representatives in Moscow. most Russians since Czarist With the signing of the U.S.-( times. Soviet trade agreement, other I THE ONLY Americans who companies and banks started' don't live in the ghettoes, as sending their people. FifteenI they are called by their resi- businessmen representing nine dents, are several businessmen, firms now have Moscow offices. who live in hotels, a journalist More companies have been ac- who's been in the Soviet Union credited and will soon open of-; for more than 30 years and has fices as U.S.-Russian t r a d e his own home, and a few dozen rises. It was more than $1 bil- graduate students and profes- lion last year compared with' sors who spend a semester or less than $200 million in 1971. a year at Moscow schools and Americans, like other foreign- live in dormitories. ers, are clearly identifiable by1 Twenty embassy personnel the white license plates on their1 are stationed at the U.S. con- cars. Soviet cars have blackj sulate in Leningrad, and there plates.j are a few students in other AMERICANS do their gro- cery shopping, using special hard currency coupons, at a foreigners' gastronom, or food store, where a bottle of Johnnie Walker Scotch sells for less than $2, but fresh fruit and vegetables are scarce and ex- pensive. Yet prices are better and the range of food available i5scs much greater than at a Rus- sian gastrohom that few Ameri" cans venture into local stores. Furniture is imported from Helsinki or Copenhagen, as are such Western amenities as corn flakes and chewing gum. Most other items--soap, clothing or cosmetics-are purchased dur. ing vacations outside the coun- try. THE AMERICAN Embassy, a rambling, mustard - colored i _. : 3 i' ' 1 a i r .I r GROUP GUITAR LESSONS 6 Consecutive Weeks, Materials Included, ONLY $12.00 We also teach flute, banjo, recorder, bass, sax, drums, piano, oboe, and clarinet. FOR ENROLLMENT, CALL 769-4980: ANN ARBOR MUSIC MART 336 SOUTH STATE Open 10:00 a.m.-7:00 p.m. Mon -Fri.; Sat. 'til 6:00 , n. U' s.VAUOIM AJVV s I.SUS~eS street, is "mother figure" to Americans, as one journalist 1 quipped. Americans can get their mail and go to church at the Em- bassy. They eat at the snack bar, which offers ham and eggs for breakfast and cheeseburgers for lunch. On Monday nights, they watch American movies in a basement room which is transformed into a bar on Fri- day nights. In keeping with the small- town atmosphere of the Ameri- can community, there's consid- erable gossip about what every- body else is doing. "THE EMBASSY tells us not to gossip about people," said one diplomat's wife. "But we ignore it. If we couldn't gossip, we couldn't survive." Most Soviet citizens are dis- couraged from having anything to do with foreigners. As a re- sult, Americans usually meet only dissidents and those clear- ed by the government to asso-, ciate with foreigners, such as Soviet officials, certain intellec- tuals and those who work in service capacities -- translators, secretaries and drivers. When Americans arrive in Moscow, a city of 7 million peo- ple, they are warned about theI probability that the phoneis tapped and apartments bugged., When discussing sensitive sub- jects in offices and apartments, IliI AFSCME Invites TO A PRE-ELECTION OPEN HOUSE All U of M CLERICALS MONDAY-SEPTEMBER 9, 1974 5:00 p.m. to 9:00 p.m. CAMPUS INN HOTEL HURON ROOM E. Huron & State Street--Ann Arbor, Michigan As the day approaches for U of M clericals to decide the question of union representation (September 16-23), AFSCME is anxious to hear your ques- tions. Please come to the "Open House" on MONDAY, SEPTEMBER 9, for a relaxed evening. Bring: * YOURSELF AND YOUR CO-WORKERS " YOUR QUESTIONS, COMMENTS & SUGGESTIONS * MEMBERS OF YOUR FAMILY. THEY ARE WELCOME. - .::: III ®-t- -L....,.....-1... . :It L-.. .. .--A m ----- r-- r i I