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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