Mass Action shows the way. Victory to the Revolution!

FEBUARY THE II TH WILL GO DOWN IN HISTORY AS DAY I OF THE IRANIAN REVOLUTION. IN A CLASSIC DEMONSTRATION OF THE POWER OF MASS ACTION THE IRANIAN WORKERS WENT FROM STRIKES AND MASS DEMONSTRATION TO ARMED INSURRECTION. THE ARMED FORCES WERE EITHER WON OVER TO THE CAMP OF REVOLUTION OR SWEPT AWAY BY THE SHEER POWER OF THE RISEN PEOPLE.

THE REVOLUTION STILL FACES MANY PROBLEMS. THE GENERALS HOPE THAT BY PULLING BACK TO BARRACKS THEY CAN ISOLATE THE ARMY FROM THE REVOLUTIONARY CONTAGION AND PRESERVE IT AS A WEAPON OF REACTION. AYATOLLAH KHOMEINE AND THE RELIGIOUS LEADERS WILL NOW TRY TO HALT THE REVOLUTIONARY FERMENT AND THE WEST WILL MovE TO SUPPORT HIM IN THE HOPE OF PREVENTING THE WORKERS COMING TO POWER. BUT WHATEVER PROBLEMS ARE POSED IN THE FUTURE NOTHING CAN TAKE AWAY FROM THE JOY AND GRANDEUR OF A DAY ON WHICH THE MASSES EXERTED THEIR STRENGTH AND DEALT A CRUSHING DEFEAT TO IMPERIALISM.

WE CARRY A BACKGROUND REPORT ON IRAN ON PAGE TEN.

ct EMS, capitalist fiasco ££ System has raised a number of important questions about the political and the left, believe that membership of the EMS will signal a final break with British imperialism. The reformist Republicans (OpPicials )

and economic future of Ireland. Many commentators, on the right and the social democrats imagine that closer integration with European imperialism will create a modern, independent Ireland. This reasoning serves as an excuse to abandon the struggle against British imperialism and adapt to the pro-multinational bias of the trade union leadership.

leaving aside the curious logie which posits that dependence on European rather than British imperialism will lead to Irish independence, what truth is their in the view that Britain is no longer the decisive economic and political influence in Ireland?

It is true that over the last decade and a half Irish trade has diversified considerably. Roughly half our trade is now — with countries other than Britain. Similarly, a substantial part of industrial investment comes from the U.S. and European countries. But it is simplistic and superficial to think that this reflects a qualitative change in Ireland's relationship with Britain. .

T he Imperialist Link The growth of foreign trade with Europe was actually fuelled by dependence on Britain. The decline of the pound sterling had the effect of cheapening Irish exports vis a vis commodities produced in other currency areas. it was precisely the relationship with Britain which permitted and encouraged diversification of trade. This of course was the reason why no serious move was made to break the sterling link.

Furthermore there is no substance in the belief that the new trade pattern has fundamentally strengthened the Irish economy. It is true that the decline of Sterling precipitated an export boom. But if devaluation has cheapened exports it has also made imports dearer. The result is a widening trade deficit, a balance of payments crisis and an enormous national debt. The international credibility of the Irish economy is currently at a low ebb. Continued confidence by the international finance agencies ( in the form of exploitative loans) -cannot be expected unless the. -balance of payments deficit is trimmed down. This in.turn means The entry of Ireland into the proposed European Economic Monetary trimming still further the living © standards of working people -not a very big change in nature for Irish capitalism!

But surely entry in the EMS, despite Britain's refusal, shows that Britain can no longer dictate terms in Ireland?

It should be obvious that ecoaomic policies best suited to an imperialist country do not necessarily serve the metropolis when extended to its colonies. In this sense Britain and Ireland have different but not antagonistic attitudes to the EMS, Capitalists Compete Britain is hesitant about the EMS. For several years Germany has footed the bills of its poorer imperialist relations in Europe. To avoid a trade war it has continuously revalued the Mark thereby making its own exports dearer and its imports cheaper. The balance of payments crisis of other European countries eased as a result. But the EMS will at the very least slow down the rising value of the Mark and enhance the competitive edge of German industry. Despite the on-going devaluation of sterling and the revaluation of the Mark Britain already has a 20% trade deficit with Germany. In the context of the EMS Britain would be further at the mercy of German imperialism.

However, Britain is not in principle opposed to monetary union, which in the long run wot1d benefit all European imperial ist powers. The free floating of the Mark confers only short term advantages. Revaluation of a strong currency means at the same time devaluation of a weak currency. The imports of the lesser powers eventually become clearer. Prance in particular has found to ite. cost that its gains from ‘German revaluation were lost through the devaluation of the Franc in the form of higher capital costs in agriculture. In principle, ‘ a stable European monetary union suits all the imperialist powers.

Britain's success is in the long run tied to the success of European imperialism and it cannot indefinitely counterpose its specific needs to those of its partners. But the short term benefits of the floating Mark have not run out for Britain as they . have for France. Failure to impose wage restraint on the unions ‘means that Britain must fully exp‘loit the competitive advantages accruing from the present monetary chaos. Not until an effective incomes policy is enforced will British imperialism be competitive enough to cope with the challenge posed by a project such as the EMS ‘- »+ Ireland, by contrast with Britain, has a much more satisfactory level of industrial productivity. The National Wage Agreements were relatively successful in containing wages and export competitivness improved. But it is necessary again to stress that this is not a sign of independent or strong growth. In reality it réflects imperialist distortions of the Irish economy. The high mobility of foreign investment (demonstrated by the flight of foreign firms during the last recession) has confronted the Irish working class with an immediate and stark choice between low wages and unemployment. In the absence of adequate political leadership Irish workers have had to be content with the lesser evil of wage restraint.

As in the case of the diversification of trade, it is Ireland's dependence on imperialism, which has afforded it a limited amount of manouverability vis a vis the EMS. So long as there is no major and prolonged divergence between Sterling and commow European currency, the Irish economy will be able to make short term gains without conflicting seriously with British interests. Such a divergence seems unlikely since the rest of Europe would suffer from the resultant British crisis.

Those who are expecting a fundamental break with sterlingand with British dependence -are engaged in wishful thinking. Independence will come by only one route, anti-imperialist ——.

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