BY MAURICE WILLIAMS
When capitalist politicians recently met in Malaysia to celebrate the 30th anniversary of the Association of South East Asian Nations (Asean), they fretted about the onerous conditions demanded by the International Monetary Fund's "assistance programs." At the same time, rightist politicians in the United States have stepped up their nationalist demagogy against "forcing the American taxpayers to bail out bad loans to and by foreigners."

In an effort to stem the financial turmoil triggered by a wave of currency devaluations in the region, Washington has engineered loans totaling more than $100 billion as "rescue packages" for south Korea, Thailand, and Indonesia. The loan arrangements are aimed at maintaining the flow of blood money into the coffers of U.S. banks and other imperialist financial institutions. The IMF deals also call on the regimes to impose cuts in social programs and lay off millions of workers.

"Is the IMF very helpful or is the IMF causing more problems?" asked Malaysian foreign minister Abdullah Badawi, who attended the December 14 - 16 Asean meeting. "There is no improvement," he complained, adding that "the situation is becoming worse."

While the Asean conference was meeting, several currencies - including the Philippine peso, the Thai baht, the Malaysian ringgit, and the Indonesian ruppiah -dropped to record lows against the U.S. dollar.

The value of the ruppiah has plunged 52 percent since beginning of the year. Jakarta shut down 16 banks as part of the austerity measures demanded by the IMF in exchange for a $40 billion loan agreement on October 8. The regime has imposed massive job cuts already - some 420,000 workers - and the number is expected to reach 1 million by next year. Nervousness over mounting "social unrest" is echoed in the big-business media each week.

If workers take to the streets, political stability in the region "could be shattered," the December 22 Business Week reported. "Already the numbers of unemployed are alarming."

Commenting on the 1995 "bailout" of the Mexico where the living standards of working people dropped 30 percent, David Roche, an economist at London Independent Strategy Ltd., told the financial weekly a similar decline in Asia would spark "nothing short of a revolution."

Mass protests have begun to unfold in Indonesia, the region's largest country with 200 million people. Workers have gone on strike to demand wage hikes at some of the country's largest companies, such as the Gudang Garam cigarette factory in east Java, where 40,000 people work.

"It's brewing in the region," said a union activist from Sumatra. "Prices are going up and wages are as miserable as ever."

Some job actions are expected in December and January as workers demand companies pay a special bonus during the celebration of Ramadan, the Muslim month of fasting. "Normally many companies do not want to pay the bonus and that is when workers strike. This year it will be much worse," explained Teten Masduki, an attorney who represents union activists in labor disputes.

Many unionists say strikes and protest actions are also likely to escalate on the eve of the presidential elections in March. Indonesian president Suharto told the military during an October 5 parade to be prepared for any unrest. Gen. Faisal Tanjung, chief of the armed forces, pledged to crush any action that would disrupt the elections.

Suharto, who has ruled Indonesia for more than 30 years, came to power in a coup after more than half a million people were massacred by the military in 1965.

Loan default still a threat in Seoul
Meanwhile, in south Korea, the possibility of a general default on foreign loans has not diminished. Government officials estimate some $15 billion in short-term debt is due by the end of December. The country's useable foreign-exchange reserves have dwindled to a paltry $10 billion, and possibly less. The $57 billion imperialist-imposed "bailout" has not stanched the financial crisis there.

"Although Korean officials are hoping that some of the short- term debt will be rolled over, the likelihood of that is questionable because December is when annual accounts are settled as banks call in loans to balance their books," wrote John Burton in the December 15 Financial Times.

"If foreign lenders refuse to lend money to Korea, then we have no choice but to default," asserted Cho Soon, president of the governing party and head of the Central Bank. "How close is Korea to the possibility of a default?" he asked during a December 13 press conference. "I really do not know." Cho implied that the risk was 50-50, the December 14 New York Times reported.

With the specter of loan defaults to imperialist banks looming, President Kim Young Sam called the three leading presidential candidates to his mansion for meeting December 13, where he forced them to sign an agreement promising support for the IMF "bailout" program. "By observing the agreement with the IMF, we will enhance the nation's international credit standing," the statement said.

Two of the candidates had called for renegotiating the IMF deal. In posturing for the December 18 elections, they had hoped to tap nationalist sentiments and the widespread resentment in south Korea against the IMF austerity demands. Kim Dae Jung, the front-runner in the race, has promised a six- month moratorium on layoffs if he is elected. But the IMF program calls for "labor market flexibility" that will force Seoul to impose more job cuts.

A layer of south Korea's capitalist class is promoting protectionist measures, including a "buy Korean" campaign and promoting token measures such as individuals selling gold jewelry to the government.

In spite of these moves, Washington and other imperialist powers succeeded in imposing further measures to pry open foreign markets in a deal struck December 13 under the auspices of the World Trade Organization. The agreement, signed by the governments of 100 countries, commits them to dismantle barriers to foreign ownership of banks and security firms. The pact includes a provision that permits the U.S. government to revoke "most-favored nation" trading rights - a promise of low tariffs in the United States - if regimes block foreign investments.

U.S. trade representative Charlene Barshefsky and U.S. treasury secretary Robert Rubin issued a joint statement declaring the trade accord would "open financial services markets to an unprecedented degree and provide lasting benefits to US industry, the US economy and the global economy."

While the Clinton administration aims to use the trade deal and the Asia currency crisis to gain a competitive edge for the U.S. rulers against their imperialist rivals, U.S. rightist politicians have ratcheted up their nationalist clamor several notches.

"For America, Asia's devaluations are going to have a devastating impact," said ultrarightist politician Patrick Buchanan in an article published in the December 17 Conservative Chronicle. "Major targets of Korea and Japan will include the U.S. steel industry and that 60 percent of the U.S. auto industry still held by GM, Ford, and Chrysler. Both industries may soon appreciate how Japan, Inc., took down America's TV manufacturers."

Buchanan said Washington "could still protect U.S. manufacturers and workers from being swamped by Asian imports" by imposing "temporary tariffs to offset any sudden advantage Asian manufacturers have been given by their cheapened currencies." In the same issue of that weekly, right-wing columnist Phyllis Schafly declared, "The questions for Americans is, are we going to sacrifice our right of self- government and let the big U.S. banks and multinationals decide that American taxpayers must cover the losses of foreigners' stupid loans and investments?"  
 
 
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