T.

‘Britain’ has” been “dealt “a-
series of staggering blows
this past week by strikers
backing up wage claims that

return to double digit in-
flation.

g -

Prime Minister” Jim.
Callaghan met. with his
cabinet yesterday in a

' special emergency session to _
, consider the crisis,

5 million stage strike

~The Country was “prought
to a. virtual standstill
Monday with the first of a

planned series of one-day
threaten the country with a -

Strikes, when 1% million
people'stayed off work.

The country reeled under .
a complete shutdown of the
ambulance service and in
London the army was
brought in in a futile attempt
to maintain emergency

Religious leader retus friday

Renewed and ‘vigorous
confrontation seems certain .
to hit strife-torn Iran when
the country’s religious
leader, Ayatollah
Khomainie arrives in the

. country from Paris after 15
years in exile.

The Ayatollah has
maintained a high political
profile . throughout the
turmoil and has this. week
renewed his calls to the
Iranian, people to overthrow
‘the “illegal” government of
prime minister Shahpour
Bakhtiar.

As he continues to press
tke issue, it Seems the
military may be forced to

take sides, plunging the
country into further
violence.

For the third time in a-

“ambulance services,

“using |
four dozen trucks. -
This latest action, © in-

volving garbage collectors,
grave diggers, rat catchers

and a further walk out by the |

nation’s train drivers, is in
addition to a strike by truck
drivers which has left most
food stores virtually bare.

The problems were
compounded Tuesday by a

before” departure, has

_ week, the army. has clashed. alréady Tesigned and sub-
with protestors and a tank is” mitted his resignation to the

reported to have fired at a
mosque, while soldiers
smashed windows of houses
that had pictures of the
Ayatollah in their windows.

‘The army chief of staff has
pledged his support to prime
minister Bakhtiar. and
promised there will be no
military coup.

A group of 2,000 top
soldiers skilled in kung-fu
and the martial arts, known

as the immortals, have
pledged their lives in the
protection of the Shah.

But one of the key

members of the government
appointed by -the Shah

Cutbacks to social services

Ayatollah.

And the Ayatollah, who
insists he will..set up an
Islamic republic, is now
turning ‘his attention against
one of Iran’s strongest allies,
the United States.

"He says he will review
U.S. contracts currently in
effect with Iran and there is
also the possibility of threats
of oil cuts to the west.

Ironically, the U.S. sees
the traditional values of the
Ayatollah as a safeguard
against the introduction of
communism in Iran.

‘Austere’ Carter increases
his military spending

Austerity is the message in
a budget sent to Congress by
U.S. President Jimmy Carter
for approval, with cutbacks
in almost every area except
defence.

The budget is said to be
raising a food-against-guns
controversy and Senator Ted
Kennedy has attacked it as
hitting the poor, the young,
the sick and blacks. .

Carter is sticking to his
promise to keep the national
deficit to below $30,000
million and will be holding it
to $29,000 million this year,
the lowest deficit in six
years, as his greatest priority
is to beat inflation.

JIMMY CARTER
“closet Republican”

However, he has created a
move of bitterness by in-
creasing the defence budget

to three per cent above
inflation figures - by $10
billion - while bringing in
cuts in almost every other
area,

Even so, his budget
projects for a record annual
expenditure of $530 billion.

Carter is being called a
closet Republican even by
members of his own party
and is seen playing a
desperately dangerous game
that might significantly
damage his popularity
through failure to
Significantly cut inflation
while unemployment
continues to climb.

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rs to a standst

.  Snowstorni. Witte Cas “out in”

record numbers because of
an extension of the train
drivers’ strike, roads were

jammed up by vehicles

slithering into each other.

All the strikers are
demanding higher pay and
shorter work weeks. The

‘government had been trying
to curb pay increases to five -

per cent but some. claims are
forj jumps of 40 per cent.

&

Even the Shah
becoming anti-U.S. in this
outlook and is extending his
holiday in Morocco, raising
speculation that he will not
be staying on his estate near
Los Angeles as orginally
planned.

The Iranian crisis is also
spreading to other centres in
the world.

In India,
student supporters of the
Ayatollah kidnapped the
Iranian consul general and

is.

~45 Tranian-

five staff in-Bombay at pistol

100% portable

een

ment offered the striking
truckers a 15 per cent hike,
they stuck-with their demand
of 22 per cent and it is the
kind of hang-tough attitude
that threatens the country
with economic collapse. *

4

[saw 40,000
strikers marching

Monday .
defiant

past the prime minister's .
home at 10 Downing Street_

ifrontation

point Monday, saying they
would hold them for five
days in protest of the
“illegal” government.

: . 4 -

And in Canada there is
speculation that immigration
rules covering employment
of overseas students may
have to -be relaxed since
hundreds of Iranian students
studying in this country now

~find they can no longer get
money out of Iran.. They
have been receiving grants
of $1,000 a month from the
Iranian government until
recently.

_ —~fven- when the” spore tee oe “defiant

_frontation.

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