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out, the U.S. possesses vast reserves
of coal and half the world's ura–
nium: foregoing plutonium might
not mean much to the U.S. , but to
energy-poor Japan and Western Eu–
rope, it could spell the difference
between depression and prosperity.
With oil and gas shortages al–
ready a part of the international
economic scene, and the likely pros–
pect of a uranium shortage occur–
ring within the next severa! decades,
sheer economics may force nations
to disregard American antiprolifera–
tion initiatives and risk the contin–
ued production of plutonium, one of
the most deadly substances known
toman.
DEFAULT-RUSSIA'S
"SECRETWEAPON"?
A study recently released by the
Central Intelligence Agency (CIA)
reveals that by the end of 1976 the
Soviet Union owed nearly $10 bil–
lion in debts to the United States
and other Westero nations, and was
paying a walloping $500 million in
annual interest on the loans. The
indebtedness of Moscow's East Eu–
ropean allies is estimated to range in
the neighborhood of $ 15 to $25 bil–
lion or more. And Communist bloc
borrowing continues to rise steadily.
"Large-scale loans to the Soviet
Union and East European countries
were thought of by sorne as a way to
gain ' leverage' over those govern–
ments," explains Senator Henry
Jackson (D-Wash.). "But what may
be happening, in fact, is that the
debtors are on the verge of obtain–
ing leverage over Westero govern–
ments...."
Economic analysts maintain that
the Communist bloc could seriously
shake up the economy of the West
should it ever choose to default on
its loans. The blow to the West's
financia!
structure
would
be
enormous.
"Make a small loan," explains a
Swiss banker, "and you have cre–
ated a debtor. Make a large loan
and you have created a partner."
And that "partner" could literally
ruin
its creditor banks by refusing to
repay.
The Soviet record fo r repaying
Western loans has been excellent-
6
so far. What worries Western bank–
ers and military planners is what
would happen should an opportu–
nity present itself for huge Commu–
nist gains by blackmailing the West
through the threat of default.
"T
don't like to use the word black–
mail," says one West European
banker, "but that 's what it wou ld
amount to if the Soviets were ever to
seek commercial or other favors as a
condition of keeping up their repay–
ments."
A-Zurich banker sums up the sit–
uation : "The Western community
may get into a very exposed condi–
tion." But the West remains ob–
livious to such warnings, and free–
world loans to the Communist bloc
continue to mount up. And as the
Communists have a penchant for
dealing secretly with banks, no one
knows for sure just how great those
sums really are.
·
CANADAWITHOUT
QUEBEC?-NOT
.
ONLYCANADIANS
AREWORRIED
In an election upset last November,
the separatist
Parti Quebecois
cap–
tured the government of the pre–
dominately French -speaking
Canadian province of Quebec. Since
that time, the increase in secession–
ist sentiment in Quebec has grown
steadily. A survey conducted in
April for the Canadian Broad–
casting Company showed that over
32 percent of the Quebeckers ques–
tioned su pported independence
from English-speaking Canada, as–
suming economic ties were main–
tained. Polls taken prior to the
separatist party's victory last fall
placed the figure at less than 20 per–
cent.
A referendum on the indepen–
dence issue is planned in Quebec,
though no date has yet been set.
Canadian Prime Minister Pierre
Trudeau confidently predicts defeat
of the secessionist proposal , main–
taining that his country's unity "will
not be fractured ." Quebec Premier
Rene Levesque, Jeader of the Partí
Quebecois, contends that Quebec's
eventual independence is inevitable,
and that as a totally independent
nation, Quebec would have "a fu–
ture immeasurably richer and more
stimulating than the 109-year-old
bind [with Canada] ...." Holding
an opposing view, Canadian Trade
Minister Jean Chretien asserts: " l f it
carne about, it would impoverish
both Quebec and the rest of Can–
ada."
In addition to the economic con–
siderations of Quebec secession, the
Ottawa government is worried over
speculation that it might encourage
secession-minded political parties in
the western provinces of British Co–
lumbia and Alberta.
From the United States' point of
view, the economic impact of a Que–
bec secession could be enormous.
The close U.S. ties with Canada- in
trade. investments, jointly owned
companies, energy cooperation, and
so on- would inevitably come into
question.
Possibly even more important
than the economic ramifications a re
the mil itary considerations. irudeau
has suggested that Quebec's seces–
sion might necessitate the with–
drawal of Canada from the NATO
alliance and from NORAD (North
American Air Defense Command)–
the United States' forward line of
defense against a Soviet attack over
the Arctic. At the very least, a free
Quebec, should it decide to with–
draw from the NORAD network
(sorne of Quebec's leaders have
made such speculations) would
leave a giant hole in the joint air
defense system, much like a funnel .
directed straight at America's heart-
land.
·
Thus, if Quebec were to secede
from Canada, America could be
faced, in Trudeau's words, with a
situation "much more grave than
the Cuban missile crisis" of 1962.
Talk of secession may go on for
years, as those for and against it
debate the relative merits and draw–
backs. Whether Quebec ultimate ly
remains a part of Canada is a vital
question of concern not only to Ca–
nadians, but to the United States
and the entire Western world. At
stake is not only the future of the
second largest country in the world,
but possibly the economic and mili–
tary well-being of many outside its
borders.
o
The
PLAIN TRUTH
June
1977