Nissan, Japan's second-largest carmaker, announced $102 million in losses. That company has posted losses for four out of five years. Nissan bosses plan to lay off workers and freeze investments in countries outside Japan, with the exception of the United States. Truck maker Isuzu Motor, majority owned by General Motors, had a 37 percent profit slide, which it attributed to the slump in demand in crisis- wracked southeast Asia. Suzuki Motor posted a profit loss for the first time in four years. Toshiba, the second- largest electrical machinery manufacturer in Japan, suffered an 89 percent fall in profits.

Meanwhile, the unemployment rate in Japan accelerated to 4.1 percent - the highest official figure since Tokyo began recording it in 1953, and just below the official U.S. rate of 4.3 percent. Unemployment among Japanese youth who are male is now 9.1 percent. More than 850,000 construction and manufacturing jobs were eliminated in 1997. Service industry jobs increased 1.8 percent, slower than in previous months.

Moscow seeks larger IMF loan
Russian president Boris Yeltsin has requested that the International Monetary Fund increase an expected $700 million dollar loan, an installment on a $10 billion loan package, in order to bolster the ruble and stem financial panic. The Russian Central Bank reported that about half of the country's $23 billion in gold and currency reserves have been depleted since October. The Moscow stock market, which plummeted 11 percent May 27, is off more than 50 percent this year so far. And bond prices are declining.

The Yeltsin government has taken drastic measures to restore confidence of capitalist investors, tripling interest rates to 150 percent and sharply lowering the asking price on the state-owned Rosneft oil company, which received no bids when put up for auction May 19. "Foreign investors should feel confident there will be no collapse of financial markets in Russia," Yeltsin said, responding to fears of what capitalist economists call "contagion" from the crisis in southeast Asia.

European governments stage `antiterrorist' sweeps
The governments of France, Belgium, Italy, Germany, and Switzerland organized "antiterrorist" crackdowns May 26 aimed primarily at Algerians, ostensibly in preparation for the June 10-July 12 World Cup soccer championship in France. The cops arrested at least 89 "suspected Islamic militants" for interrogation. Jean-Louis Bruguiere, described by the capitalist media as "Francés leading antiterrorist judge," led the operation. French cops swept at least 10 different areas around the country, detaining more than 50 people. They confiscated a computer, videos, pamphlets, and a total of $150,000, but found no weapons or bombs.

Belgian cops invaded 13 homes in Brussels and one in the southern city of Charleroi, detaining 10 people. In Germany police raided seven apartments of Algerian immigrants and seized computer disks, videotapes, and other personal belongings. Twenty-four Algerians were arrested in Italy, and Swiss government spokesman Juerg Blaser said a "large police operation" against Algerian immigrants was carried out outside Zurich.

Poland miners win job cut delay
Coal miners in Poland pushed back that government's plan to carry out massive layoffs and other "market reforms." Warsaw planned to cut mining industry jobs in half within five years in a drive to make the coal industry profitable. Of the 240,000 miners in Poland, 105,000 are still scheduled to be dismissed - down from 118,000. The regime also backed off its proposal to freeze wages until 2002, conceding that wage rises should continue to match those won by other industrial unions. One thousand miners and relatives who support the Solidarity trade union, which is tied to the party heading the government, marched in Silesia May 26 to demand a 40-hour workweek, tax breaks for large families, and longer maternity leaves.

Ethiopia and Eritrea governments at odds
The Ethiopian government has mobilized tens of thousands of army personnel - regular soldiers, veterans, and youth doing compulsory military service -to that country's northwestern border, where a conflict has arisen with the government of Eritrea, which won its independence from Ethiopia in 1993. The ruling Ethiopian People's Revolutionary Democratic Front accuses the Eritrean government of occupying 400 square miles it claims belong to Ethiopia. Ethiopian prime minister Meles Zenawi warned the Eritrean government that if its forces did not pull out, a full-scale conflict would ensue. The Eritrean government maintains that the boundaries established during Italian colonial rule still apply.

Zimbabwe youth: `Mugabe out'
Hundreds of students protested outside Zimbabwe's parliament May 29, calling for President Robert Mugabe to step down. Riot cops guarded the parliament building with rifles, stun guns and tear gas, but did not attack. The day before, 3,000 students blockaded the building chanting, "Zimbabwe Suharto," inspired by the recent mass protests in Indonesia that preceded Suharto's resignation. Strikes and other protests have hit the country, including rebellions in January sparked by 30 percent price hikes.

Washington trims Gulf armada, leaves 20,000 troops in area
U.S. defense secretary William Cohen announced a reduction by half of its military forces in the Arab-Persian Gulf That will leave about 20,000 GIs, 15 warships, and the USS Stenis aircraft carrier. Some 6,500 U.S. army soldiers have been conducting military exercises in Kuwait since February. More than 44,000 U.S. troops were stationed in the Gulf early this year as Washington prepared to launch a large-scale attack on Iraq. Cohen cautioned that Washington could very easily decide to re-escalate its military presence as it saw fit. "The bomber force can go back in very quickly," he warned.

- BRIAN TAYLOR  
 
 
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