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WORLD EVENTS
the wake of toda
y'
s
1n
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Spain Begins Transition
of Power
In June of this year, Generalissimo Francisco
Franco, Spain's unchallenged head since 1939, turned
over the premiership of Spain and leadership of the
country's only political party to Vice President Luis
Carrero Blanco, 70, a loyal friend and long-time deputy.
Admiral Blanco assumed the official title of "President
of Government" and took over the day-to-day adminis–
tration of the country, though he
is
still responsible to
Franco. The move was viewed as the first step toward
Franco's eventual retirement. Franco, now 80, still re–
tains two other top posts in Spain: Chief of State and
Commander in Chief of the Armed Forces. He
is
still
without question "El Caudillo" (fhe Leader) and con–
tinues to make Spain's vital decisions.
Carrero's appointment also did not affect the posi–
tion ofPrince Juan Carlos de Borbon, 35, who has been
designated by Franco to become King of Spain and
to succeed him as Chief of State at his death or retire–
ment.
As reported in this column in December 1972,
Spain desires eventual membership in the powerful Eu–
ropean Community or Common Market. Franco's au–
thoritarian regime, however, has caused reluctance on
the part of the European democracies to admit Spain
into the present nine-nation club. Though Franco's
move in June did not result in any degree of political
liberalization, it was nonetheless the beginning of the
final transition of power. Many observers believe that it
will be the restoration of the monarchy after the death
or retirement of Franco that will initiate a trend toward
liberalization.
It
will move Spain closer to the democra–
cies of Europe and to the expanding Common Market.
•
The Economics of Scarcity
The world, and especially its leading industrial power,
the United States, is running out of available raw mate–
rials. This little understood side of the resource crisis
is
far more significant than temporary shortages of gasoline,
fue! oil, and electrical power. The heady era of the mid–
sixties, with its cheap fuels and abundant materials,
is
over.
18
We are now in the days of the "economics of scarcity."
There are two causes for the current squeeze. The
American economy is presently operating very close to,
though not at, capacity. And, more ominously, the
world's stock of wealth has been significantly depleted
by the industrial binge the Western world has enjoyed
for the last decade.
Proveo reserves of nearly all key materials are
being seriously depleted. The United States, for ex–
ample, has mined the last of its known reserves of
manganese and chromium, which are vital to steel–
making. Bauxite, from which aluminum is made, is
running short. Zinc, lead, mercury, copper, and a host
of other minerals will also be depleted within a few
decades.
The United States now imports half of its alumi–
num, zinc, nickel, and tin. Shortages domínate the eco–
nomic picture in many other categories such as lumber,
paper, cotton, wool. fertilizers, and resins.
What does all this scarcity portend? For one thing,
continued price infiation in virtually every category,
since steel, aluminum, petrochemicals, wood, and paper
are the primary manufacturing materials.
Should imports of certain vital minerals ever be
curtailed, as in a "trade war," whole industries could go
under. If the U.S. steel and auto industries had to be
curtailed because of mineral shortages, the chain reac–
tion through other industries would certainly mean tlat–
out depression.
For the United States and much of the rest of the
industrialized world, the shortages will necessitate
greater recycling, elimination of material wastes, diver–
sification of sources of needed supplies, and decreased
use of automot ive vehicles. All these, however, have
their drawbacks. Recovery and recycling technology -
usually expensive - must be greatly improved - and
that will take time. The hunt for new sources of mineral
supplies could lead to serious political frictions among
the United States, Japan, and the nations of Western
Europe.
And what if the Third World nations, which pro–
duce many of these vital minerals, organize themselves
into a "mineral monopoly"?
- edited
by
Gene Hogberg
PLAIN TRUTH October 1973