SHARINGGLOBAL

RESOURCES

1975 Data from World Bank and Fortune Magazine

SHARING GLOBAL RESOURCESTOWARD A NEW ECONOMIC ORDER

BY

National Action Researchon the

Military Industrial ComplexA PROGRAM OF THE

AMERICAN FRIENDSSERVICE COMMITTEE

GLOBALRESOURCES:QUESTIONING CURRENTMANAGEMENTPROPOSALS FOR ANEW ECONOMIC ORDER

1*

*

GLOBALRESOURCES:2

THE STRUGGLE FOR CONTROL

JAMAICA CHILEANACONDA KENNECOTT

GLOBALRESOURCES:3

QUESTIONS FOR AMERICANS

* COAL-RICH APPALACHIA * THE REST OF US

ANACONDA

ALUMINUM: FROM MINE TO CONSUMER

MINED AND PROCESSED

IN JAMAICA

MADE INTO INGOTS, MADE INTO INGOTS, . . . THEN FOIL.

MADE INTO INGOTS, . . . THEN FOIL.

“…hundreds of millions of desperately poor people… about 40% of entire population development is simply not reaching them…”

World Bank PresidentRobert McNamara

ALFRED RATTRAYJAMAICA’S AMBASSADOR TO USA

Poor countries have to work and work and work just to keep pace, and even so they are not keeping pace. It’s keeping them poor. It’s putting them on a

treadmill.

In the early ‘60s, Tanzania could buy this truck from their earnings for five tons of cotton. Ten years later, it took eight tons to buy the same truck. Many countries have experienced similar problems.

While prices for trucks and other manufactured goods maintained a steady climb (heavy red), export prices for many raw materials fluctuated widely, and for a number of years did

not keep pace. From 1953 to 1972 raw material prices, excluding oil, fell by an average of two per cent per year, in comparison to

manufactured imports.COMMODITY PRICE INDEX

To improve their “terms of trade,” TWCs pressed harder for a package of more favorable commodity agreements and for some form of “indexation” (setting prices of their exports like cotton or coffee at a fixed per cent of imports like trucks or tractors).

Rattray: “My own view is that the developing countries really have no hope unless they get together. It’s really a question of the power to negotiate, to speak with, to bargain with another entity. That is why unions have to get together.

Because one worker cannot go on and bargain with the boss. The boss is as strong as all those workers combined, and that is why they can bargain.

And you know, countries are just like that. If there are 10 producers of a product, and each one wants to make separate deals, then you will become easy prey, to be picked off one by one.

Not so, however, when they get together. You know, in the long run, it is better for the world. Once you have an orderly situation, then the chances for social, economic and even political peace is greater.

The beginning unity of Third World countries has improved their bargaining strength. They are now taken seriously when they call for replacing the current economic order with a New International Economic Order.

Tanzanian Bishop James Sangu speaks at the

Catholic Eucharistic Conference

“In international affairs and international trade, the developing countries are still almost completely at the mercy of the developed countries.”

“…the developed countries…dictate the world market.

They fix tariffs and quotas.They determine the prices of raw materials and

primary products.They establish the prices of the processed

products.They determine the monetary system and control

the circulation of money through theInternational Monetary Fund and theWorld Bank…

“And one of the basic principles of this world order is that as long as you make a profit for your own purse it does not matter if you plunder others…

“The people of the Third World realize more and more now that the only means to save them from perennial poverty and hunger is the creation of a New International Economic Order, based on mutual agreement between all nations, aimed at equal justice for all, through equitable distribution of the world’s riches and resources…”

GOAL: ABOLITION OF POVERTY

1 EQUAL TRADE2 CONTROL OF

RESOURCES

GOAL: ABOLITION OF POVERTY

3 MONETARYREFORM

4 ELIMINATINGWASTE

Producer in Jamaica

Consumer in U.S.

Is the confrontation between the producers in poor

countries and us consumers?

MAHBUB UL HAQTHIRD-WORLD ECONOMIST

“The confrontation is with the multinational corporations (MNCs), the middlemen who control the various stages

where the big money is to be made.”

“Only a penny and a half out of 20 cents goes to a country

like Honduras which produces these bananas.

What Honduras wants is not for you to pay more, but for

Honduras to move into controlling its own banana

production.”

“If Honduras could get more, it could certainly begin to help itself out of poverty and also get some of the funds it needs so desperately to industrialize.”

PROPOSALS FOR A NEW INTERNATIONAL ECONOMIC ORDER

“We remain convinced that the task of developing our societies is essentially our own responsibility…We do not advocate to our societies that they find a convenient alibi in the international order for every lack of progress on the domestic front.”

THE SHAH OF IRAN AND BRAZIL’S GENERALS MIGHT

DISAGREE WITH THIS THIRD WORLD DECLARATION.

But countries like Tanzania, Jamaica, and until 1973 Chile have sought to put it into practice.

GLOBALRESOURCES:2

THE STRUGGLE FOR CONTROL

JAMAICA CHILEANACONDA KENNECOTT

Michael ManleyPrime Minister of Jamaica

“For all small Third World countries, their attempt to change themselves has to begin with the problem of changing the world. If you can’t change the world, if you can’t change the distribution of wealth in the world, you haven’t a chance of changing, really, the condition of any of the small Third World parts of that world.”

(1972–1980, 1989–1992)

For centuries, Jamaica provided pirate treasure, slave trade, rum and sugar.

Today, Jamaica provides more than one half of the aluminum ore for American industry.

We often expect thanks from poor countries for the aid we give them. But what about the aid they’ve given us through cheap raw materials to build our

industrial economy?

And what about the large masses of their land countries like Jamaica have allowed big

corporations to buy up, and sit on, to keep their competitors from getting the bauxite reserves?

What about the people who went hungry while the companies let this land lie fallow?Jamaicans are beginning to say thanks, but no thanks. We can no longer afford to be

someone else’s treasure island.

MICHAEL MANLEY Prime Minister of Jamaica (1972–1980, 1989–1992).

Jamaica was able to get a 700 % increase in its bauxite levy – adding less than two cents to the price of a pound of aluminum.

The International Bauxite Association (IBA), establishedIn 1974 in Jamaica, was dissolved on December 31, 1994.

The IBA had been acting as a database for its members, allowing them to exchange information and ideas on the state of the industry.

Financial support for the IBA came from its members, based on production volume.

Has this money gotten down to the people of Jamaica?

Is there a new internal economic order in Jamaica?

SAUL LANDAUFilmmaker

Fil

Above Photos: Filmmaker Saul Landau with Michael Manley and Fidel Castro. (Jamaica) (Cuba)

Below: Saul Landau receives the Bernardo O'Higgins Award, 2008.Bernardo O’Higgins = Chilean Independence leaderBernardo O’Higgins Award = Chile’s highest award for a foreigncitizen

“It will take decades and decades to begin to turn what is a completely distorted society into one that makes any sense.

From the bauxite revenues, 12 years after independence (1962), Mr. Manley instituted first steps toward progress.”

Unemployment rate is very high.

“impact program” – to provide jobs for the most needy workers, building dams, irrigation programs, rice plantations, feeder roads,

or access roads.

School buildings were constructed during Manley’s administration. Education was made free for all students.

The JAMAL (Jamaica Movement for the Advancement of Literacy) Program provided free adult education for fisherfolk.

This Jamaican farm is another change. It is organized and run by its workers.

♫This time it’s not just changing a president. The people will build a better Chile. ♪ ♪♫♪♫

INTI ILLIMANTI

CHILEA VAST TROVE OF COPPER

How Chile’s nationalization of copper affected Anaconda’s sales In the first two bars, the gray area shows Anaconda’s sales of Chilean raw materials in 1968 and

1969. The other colors show sales of raw materials from all other sources. The gray area stops in 1970 – no more Anaconda revenues from Chile’s copper.

Although copper's relative importance declined in the 1970s and 1980s, it was still the Chilean economy's most important product in 1992. ..

ISABEL LETELIERWIDOW OF CHILE’S FORMER AMBASSADOR

“In Chile, copper is life. Because it’s our main resource.”

“We have such a small and poor country, in fact, that we could not share our little resources with big companies that can get money from other places. It was very important for our country to be the owner of the whole country.”

“The vote in Chile’s Congress to nationalize the industry was unanimous. For the first time, all the opposition political parties agreed: COPPER

FOR THE CHILEANS !

Not all Chileans were inspired by President Allende’s pledge. Some Chileans benefited from the existing order.

Well-to-do housewives protested that the new buying power of the poor created shortages of goods in the

stores.

NO MAS ITT!AHORAMAS TELEFONOSPARA CHILE

ITT officials testified in Congress that Anaconda asked ITT to arrange a series of meetings in 1971 with interested companies, including Kennecott, to coordinate their response to the nationalizations.

Harold Geneen

President ITT

According to ITT secret memos, the Nixon administration had given assurances that it was “a business administration . . . and its mission was to

protect business.”

A complex strategy went into effect called, by the CIA, “destabilization.” The CIA, using $11 M of our tax money, funded assassination plans, work

stoppages, planted press stories and anti-Allende political activity.

1969 1970 1971 1972 19730

10

20

30

40

50

60

70

International Bank Aid Domestic Aid Military Aid

AID TO CHILE

MILLIONSOF

U.S.DOLLARS

AllendeGovernment

Kennecott Copper Corporation

Kennecott tried to stop the sale of Chilean copper in Europe. Other countries refused to sell spare parts, thus

practically paralyzing Chile’s industry. Private banks joined in denying credit.

KENNECOTT COPPER CORPORATION

“Not a nut or a bolt will be allowed to reach Chile under Allende. Once Allende comes to power we shall do all within our power to condemn Chile and the Chileans to the utmost deprivation and poverty, a policy designed for a long time to come to accelerate the hard features of a communist society in Chile.”

U.S. Ambassador Edward Korry – memo to Edward Frei, September 1970

Sept. 11, 1973: Military junta overthrows elected government.

Gen. Augusto Pinochet led the Chilean military junta which assassinated President Allende.

Pinochet then ruled Chile as dictator for 17 years.

“No constitutional rights at all. No right to free speech; and repression, ideological repression.”

“The burning of books is something unforgettable.”

“People in jails, your relatives in concentration camps. And at the same time their families, without their principal source of income, starving.”

“So in this moment, to support the economic model that has been implanted in Chile by force, a tremendous

repression is needed.”

Isabel Letelier’s husband Orlando was Chile’s ambassador to the U.S. under Allende.

On September 21, 1976 he was killed in a car bombing in Washington D.C.

CORINNE JOHNSONDIRECTOR, AFSC

LATIN AMERICA PROGRAM

American Friends Service Committee (AFSC) Feeding Program:

“Under Pinochet’s dictatorship, in addition to the political repression, there is repression through hunger and poverty.”

AFSC PROGRAM

CHILE 1976

“Under Allende, there was a determined effort to shift resources from the rich to the poor at least to a degree.

And this was successfully done, with improvements in the standard of living of the poor.”

“Under the current regime, there is an economic policy which calls for profitability in all undertakings, and in order to do this, the government

has applied what they call a . . .”

“ ‘shock treatment’ to the economy, very sharp reduction in government expenditures, recognized increases in unemployment, a deliberate

cutting back of the minimum wages for those at the lowest level . . .”

“This essentially is a policy which has been designed to put the greatest burden on the poor and to leave the rich with sufficient resources for

investment or for purchases of consumer goods.”

“For the poorest, it’s frequently meant . . . an inability to buy enough food for their families.”

But the global corporations fared much better. The Chilean junta paid Anaconda and Kennecott generous compensation, and business magazines see the new military

government as leading Latin America in reopening the door to foreign investment.

1969 1970 1971 1972 1973 1974 1975 19760

20

40

60

80

100

120

International Bank Aid Domestic Aid Military Aid

AID TO CHILEMILLIONS

OFU.S.

DOLLARS

AllendeGovernment

TO OUR STOCKHOLDERSIn January, 1974, the government of Chile returned all of the Dow properties in Chile,

and the loyal, patriotic Chilenos and Chilenas, of whom I wrote in the 1972 annual report, came home.

We are delighted for them and they for us. They had maintained a long, courageous and

lonely struggle because, as patriotic citizens, they believed their country

needed Dow principles, citizenship and technology.

I believe stockholders have no better proof of the total quality of our Company.

Over the 1962 to 1973 period, the Forty Committee (an inter-departmental body that reviews and authorizes all covert CIA activities and is chaired by the President’s Advisor on National Security Affairs) authorized the expenditure of approximately $11 million to help prevent the election of Allende and, in Mr. Colby’s words, “destabilize” the Allende government so as to precipitate its downfall. The agency activities in Chile were viewed as a prototype, or laboratory experiment, to test the techniques of heavy financial investment in efforts to discredit and bring down a government.

Congressman Harrington on Secret testimony of CIA director William Colby

Philip Ageeex-CIA officer

The Central Intelligence Agency (CIA) = an independent agency of the United States government responsible for collecting and coordinating intelligence and counterintelligence activities abroad in the national interest; headed by the Director of Central Intelligence under the supervision of the President and National Security Council; also engages in covert activities at the request of the President of the United States.

Henry Kissinger: National Security Advisor and Secretary of State under President Richard Nixon

“Indeed, good relations are completely incompatible with what the world now

knows the CIA stands for –

secret intervention to subvert the national political processes of countries around the globe.”

Philip Agee’s press conference was held a couple of weeks before Jamaicans overwhelmingly reelected Michael

Manley.

Americans lobbying in Congress

GLOBALRESOURCES:3

QUESTIONS FOR AMERICANS

* COAL-RICH APPALACHIA * THE REST OF US

♪ ♫♫♫ “PARADISE”

Daddy, won’t you take me back to Muhlenberg CountyDown by the green river where paradise lay?Well, I’m sorry, my child, but you’re too late in asking,Mr. Peabody’s coal train has hauled it away.

The coal company came with the world’s largest shovelThey tortured the timber and stripped all the landAnd they dug for the coal ‘til the land was forsakenThen they wrote it all down as the progress of man. ♫ ♪

♫ ♫ ♪

When I die let my ashes float down the Green River.

Let my soul roll on up to the Rochester Dam.

I'll be half way to heaven with Paradise waitin‘,

Just five miles away from where ever I am.

“A trip to Paradise” With Nancy Weiss, Kathy Carroll, Jerry Briggs and Ed O'Rear (They all brought bits and pieces of Paradise home to you.

Linda Johnson

Colonialism in Modern America: The Appalachian Case

Authors: Helen M. Lewis, Linda Johnson

Lewis, Helen Matthews, Linda Johnson, and Donald Askins (eds.). Colonialism in Modern America: The Appalachian Case. Appalachian Consortium Press, 1978.

“My grandfather was killed in the mines when he was pinned between two coal cars, and my father was also a

miner, and he eventually got black lung.”

“If you take coal, timber, water, and human resources, we are a very, very rich region.”

Appalachian hillbillies

Thomas Banyayca talked about how strip-mining affected his people in the Black Mesa.

.

Black Mesa (also called Big Mountain) is an upland area in Navajo County, Arizona

Arizona (AZ) is in the southwest of the United States.

“. . . the technology that we have that we employ to destroy the earth is just overwhelming.”

“There was nothing there at all except barren land and a fine, fine dust that was being whipped up by

the wind.”

strip mine = an open mine, especially a coal mine, whose seams or outcrops run close to ground level and are exposed by the removal of overlying soil and rock.

Strip mining has been criticized for being ecologically destructive and for causing pollution of water resources, as the removed soil and rock are often dumped in lower-lying areas.

Mining operators are sometimes required to restore soil and vegetation and to clean up the mining site.

Peabody (strips Appalachian and Native American lands) was owned by Kennecott (involved in the destabilization

of Chile).

a Kennecott copper mine

INDIANS

JAMAICANS

CHILEANS

Kennecott Board of Directors in bucket of Peabody’s stripping shovel

Ladysmith, Wisconsin Kennecott has a copper mine.

Laguna Indian Reservation, New MexicoAnaconda has a uranium mine.

San FranciscoSeptember 2010

What do we want our government and the corporations to do about Global Resources?

1969 1970 1971 1972 1973 1974 1975 19760

20

40

60

80

100

120

International Bank Aid Domestic Aid Military Aid

AID TO CHILEMILLIONS

OFU.S.

DOLLARS

AllendeGovernment

Harris poll survey: 61 % of all Americans said it is “morally wrong” for the U.S. to consume so much of the world’s

resources.”

What if our citizen action succeeds?Are we willing to accept the consequences?

Could the consequences be a better lifefor most Americans?

EXPANDING CONSUMPTION

THROUGH

STYLE CHANGES

BUILT-IN OBSOLESCENCE

There comes a time in everyone’s life when they justwant to be alone with the person they love.

Ad by SONY CORP

ADVERTISING

Could we have more quality food with less packaging?

Could resource consumption be reduced through better mass transit?

Can a more stable and peaceful world order become a reality for ourselves and our children?

Jimmy Carter: US President from 1977-1981“A stable world order cannot become a reality when people of many nations suffer mass starvation; when the countries with capital and

technology belligerently confront other nations for the control of raw material and energy sources. “1977-1981

1975 Data from World Bank and Fortune Magazine

What can we do to bring about a just and peaceful sharing of global resources?

“Human rights do not begin with the right to dissent in safety. The process may end there, but it begins in the stomach of man.”

Michael ManleyPrime Minister of Jamaica (1972–1980, 1989–1992).

The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC (consisting of theArab members of OPEC, plus Egypt, Syria and Tunisia) proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974.[1] With the U.S. actions seen as initiating the oil embargo and the long term possibility of high oil prices, disrupted supply and recession, a strong rift was created within NATO. Additionally, some European nations and Japan sought to disassociate themselves from the U.S. Middle East policy. Arab oil producers had also linked the end of the embargo with successful U.S. efforts to create peace in the Middle East, which complicated the situation..[1]

To address these developments, the Nixon Administration began parallel negotiations with both Arab oil producers to end the embargo, and with Egypt, Syria, and Israel to arrange an Israeli pull back from the Sinai and the Golan Heights after the fighting stopped. By January 18, 1974, Secretary of State Henry Kissinger had negotiated an Israeli troop withdrawal from parts of the Sinai. The promise of a negotiated settlement between Israel and Syria was sufficient to convince Arab oil producers to lift the embargo in March 1974. By May, Israel agreed to withdraw from some parts of the Golan Heights.

FOR OPTIONAL WORK

CARTOON DRAWINGS of 3 sets of SLIDES:

Student #11. Bargaining #12. Bargaining #23. Bargaining #3

Student #24. Abolition of Poverty #15. Abolition of Poverty #2

Student #36. “You are now leaving Appalachia” slide

SPECIFICATIONS: DUE DATE: one week from nowwhite bond papercolored drawings