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advance
news
in the wake of today's WORLD EVENTS
e
Worst Year Ever for the Dollar
It is now lcarned that the United $tates lost nearly
$7,000,000,000 in its balance of payments for 1969.
It
was
the worst year ever, topping the previous record of $3.9
bi llion in L960. In 1968, the United $tates registcred a
slight surplus of $168,000,000.
A deficit occurs basicaJly '-'"hen foreigners acquire more
dollars from thc U. S. than thcy return in all dealings. Thcse
dollars held by foreign central banks may be used to pur–
chase gold from the Treasury and thus pose a potcntial threat
tu the U. S. gold stock.
Various rcports from Japan and Europe indicate hard
times ahead in the battle for a balance of payments surplus.
Japan has rebuffcd attempts by United States trade negotiators
to liberaJize rcstrictions on forcign imports.
It
is anticipated
that the U. S. trade deficit with Japan could run as high as
1.5 billion this year. Also, the Common Market has sternly
rejected American charges that it was following protectionist
policies in its trade with thc U. S.
Predtctions by U. S. officials of a large balance-of-pay–
mcnts surplus for 1970 have beco noticeably lacking this year.
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Jopan - Giant of Asia
Japan's national power "will carry weight it has never
had before in world affairs" in the decadc of the 1970's.
This, according to Japan's prime minister Eisaku Sato
in his rccent state-of-the-nation message. Sato displayed a
sense of national pride and self·confidencc rarely seen in
Japan since thc end of World War JI.
One of the growing list of reasons for this emerging
pnde was the: successful orbiting on Fcbruary
11
of an
artificial satellite. The launch qualified Japan as the fourth
mcmber of the "space cluh." The others are the United
$tates, the Soviet Union anJ France.
Although the Japanese have avowed pcaceful intcnt in
their space program, a number of Asian nations are fearful
that Japan may eventually use its oew technology for military
purposes. The "lambda" rocket which powered the satellite
into space is said to have suhícient thrust to power an inter–
mediate.range ballistic missilc, though with an inade<¡uate
warhead.
All this is taking place at a time when debate on the
controversia! "no-war" clausc in Japan's American-written
postwar constitution is again being revived. "Hawks" within
the ruling Liberal Democratic Party 1nsist that onc of the
major tasks of the party in the L970's will be to amend the
constitut10n. Opposition p:trties claim that a revision of the
UPI
Phoro
The Lambda 455 rocket launched Japan's first satel–
lite into space on February 11, 1970.
constitulion would lcad to a buildup in defense power, thus
giving dormant prewar militarists and industrial complexes
that could thrive on armaments, a new lease on life.
Even as matters now stand, Japan's combined ground,
naval, and air "Self-Dcfense Force" - a euphemism for army,
navy and air force - is the largest in non-communist Asia