Re: [A-List] IMF UK 1976

[Andre Gunder Frank <franka@xxxxxxx>]

Alas my scanner is tired and doesnot want to copy pp  115- 118
of CRISIS: IN THE WORLD ECONOMY by A.G. Frank [Holmes & Meier/Heienmann
1980] so only tip of the iceberg quotes/paraphrases here [lucky for you
all!]
- 1974 Coal strike ousted Heath gov.
Right left agreement that a Labour victory would reing in protest more
than a Tory one.

Aug 5, 1974 ''Could Britain be headed for a military takeover? Armoured
cars at Heathrow: A rehearsal for a coup? Times 5 Augst

Indeed, Tories were already arguing yesterday that a narrow Labour win
was probably the bvest outcome '' FT 12 Oct 74

--Strong appeal to ubnion members to keep wage demands down

--Government acts to arrest sliked in sterling. Healy asks for 10 % pay
limit

Wilson had to take his hat and bve replaced by Callaghan. Heally had done
satisfactory job and stayed on


By the end of 1976 s''l'sloly and painfully the Cabinet [was] getting
around to discussing the terms this country would have to accept in order
to secure the loan from the IMF""
-- [agf comments: painfully pewrhaps but not slowly since two weeks later
Britainb slashed spen ding by L/ 2.5 billion in Effort to win IMF loan
 IHT 16 dec 76
IMF Board meets to approve $ 3.9 billion loan fro Britain. Clearanc e is a
formality....

US SEc of Treasy William Simon said that Us would supoport loan IHT 4 Jan
77

IHT 23 July 77: Britain's Labour Government today abandoned 30 years of
Keynesian policy and announced a still L/ 1.9 billion [$ 3.4 billion]
deflatiinary package at a time of high and rising unempoloyment...Healy
told the Huse of Commoins he will slash L/ 1 billion from a wide list of
Labour's favorite programs  ... Healy will alos slap L/ 900 millin tax
...passed on to consumers.

Healy and Callaghan havce turned the [Keynesian] doctrine on its head...
opposition Tories have been calling for just such measures and so
applauded [IHT 23 July 11977]

[[ from eslewhere i can fish out a much later quote fro nUK rteasury
officials saying that the IMF demands were a good political legitimation
for what they had been wanting to do anyway].

To Jimmy from James
"" Let me urge Mr. Cater to listen instead to what his counterpart in
Britain, Prime Minister Callaghan, said to the Labolut Psrty Conference on
Sept 28 ...That must rank as one of the most remarkable and courageouys
statements ever made by a leader of as democratic government. TRead it
again. Savor it. [Newsweek 6 December 1976, p 45. in the bi-weekly column
of Milton Friedman!

By mid 1977 Jimmy Carter - with the help of Stuart Eizenstadt, hisa
principal advisor on domestic policy,  had done
exactly what Friedman had proposed -- a U turn alos in US econ policy, but
not simply because MF recommended it.

[Eizenstadt became prominent again in the late 90s for strictly domestic
US political reasons when he negotiated the
Swiss Bank return of money to survivors of the Holocaust]

the text itself has more goodies!

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                    ANDRE  GUNDER  FRANK
Department of History			   Home
University of Nebraska Lincoln [UNL]       4440 North 7th Street
612 Oldfather                              Apt. 107
P.O. Box 880327				   Lincoln, NE 68521 USA
Lincoln, NE 68588-0327 			   Tel: 1-402-742 7931
Tel: 1-402-472 3251=direct 2414=Dpt        Fax: 1-402-742 7932
Fax: 1-402-472 8839
E-Mail: franka@xxxxxxx          Web Page: csf.colorado.edu/agfrank/



 The Gulf War comes to mind.  The United
 States led coalition was right to get Iraq out of Kuwait economically,
geopolitically, and morally.  No one of those factors was weighed heavier
than the others necessarily.  And considering the United States is a
democratic republic (of the people, by the people, for the people), and
the
people heavily favored the moral reasons, the government was doing its job
in representing the people's wishe