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simply that there just aren't enough capitalists. Less than 1% of Western society owns virtually all capital.

As the technology makes the machine or capital more productive than labor, making a person productive means to make him or her an owner of capital. Ownership of the MNC's, the distribution of dividends, or of rebates must be made available to those citizens and communities who step out of the disintegrating economy and into the surviving or ecologically sound "New Global Economy.

The alternative to larger government and government redistribution of income is private sector distribution of non-inflation income_based on capital as well as wage income. In this way, the private sector supplies the purchasing power-based upon productivity and profit.

Consistent with environmental interests, ensured by planning, the private sector can expand its own marketplace and not be dependent upon government financing.

The MNC's and other large corporations must form the large conglomerates required to bring forth new cities and towns—allowing the development of large ecologically sound "systems economy”—instead of products and services economy.

OWNERSHIP AND CORPORATE EARNINGS

Corporate ownership should be broadly distributed allowing all citizens to be productive by virtue of owning capital—the machienry of automation, especially in the absence of productive job availabilities.

The wages of capital (i.e., corporate earnings) like the wages of labor should be paid in full-in order to allow full distribution of purchasing power. Those who are super productive, i.e., the 5% in America who own virtually all the wealth will pay taxes on their dividends and allow non-deficit government redistribution. The practice of allowing the super productive to plow virtually all their corporate earnings into tomorrow's plants perpetuates the super productivity of the few and ensures the continuing inflation and ultimate depression of the economy by expanding non-productive payments by governments in the form of various make work—welfare to warfare expenditures_fueled by higher taxes and deficit spending.

Tax policy can moderate their purchasing power at either the corporate tax level or at the individual tax level. Investments in new plant will be made by a public planning process, the use of SDR's or pure credit or currency, with a discipline to ensure productive and profitable enterprise.

Corporate earnings should be used for R & D, as incentives for citizens, communities, for metropolitan areas, and for nations who contribute to production or conservation or otherwise to the achievement of global goals.

Workers must accumulate stock to provide for retirement. In capital-intensive industries ownership must be "given to,” or “earned by” consumers in the same way that ownership is paid for by the rich-i.e., by the earnings of new investments.

The concepts above concerning broad distribution of capital ownership allowing the gradual elimination of work, and the establishment of an automated "self serving" society-must be controlled or moderated by the need and responsibility of advanced societies to assign labor to the tasks of promoting interdependent trade among adversaries and to hasten global developments of over populating and under nourished societies.

NEW TECHNOLOGY

New Technologies emphasizing increased production, better working conditions and resource conservation are to be encouraged. Satellite Communications where a 200 pound satellite replaces 100,000 tons of under sea cable-advanced communications and computer techniques extending information to the home and to the local community center-bringing work to the workers—can reduce commuting and conserve resources; the elimination of unnecessary work or makework conserves resources—and allows the worker to be assigned to productive ownership and/or work—or to leisure; democracy and cultural enrichment—the business of humanity.

AT&T, Cable and Wireless, and the International Radio Carriers must be compensated for their current obsolete systems in order to allow or apply the benefits of satellite, CATV and laser communications.

The various vested interests in transportation and land use must be consolidated into giant conglomerates to provide the institutions and policies necessary to build better cities and towns. See "Human Settlements Growth Policy."

Agri-business high technology farming is feasible for Third World nations where resources allow, by the organization of labor populations, to benefit as owners and part-time workers.

ENERGY

Oil prices should be administered by MNC's at high rates in order to: (a) persuade lower consumption; (b) accumulate funds for R&D—for both substitute energy sources—such as solar and fusion, as well as for New Cities which will conserve fuel; (e) accumulate incentives to reward those citizens who step into the NIEO, i.e., step out of the overpopulating, overconsuming, and conflict way of life. This energy model is typical of what can be done with MNC's in all industries.

FOOD, RAW MATERIALS AND PRODUCTIVE CONTROLS

World food policy funded by SDR's should include maximum production for existing markets, buffer or storage stocks, and export sales to Third World nations for local currencies. The use of these local currencies, together with capital and land reform policies, as loans to various enterprises, will provide expansion of local agricultural and industrial production.

Firm price support programs—for all commodities and raw materials are absolutely required.

As Third World production provides increasing self-sufficiency in food, developed nations can ease production.

Provisions should be made to export technical assistance to increase world production while maintaining advanced technological capacity intact in developed nations.

Where energy resources and other factors allow—capital intensive agriculture can be exported.

Production controls must be implemented with full price support to a given desired maximum production level for each commodity or raw material, together with lesser prices varying to a bare subsistence level for excess production over the maximum desired levels,

HUMAN SETTLEMENTS GROWTH POLICY

The conservation of resources, which will-improve the environment, allow transfer of resources to Third World Markets-ensure survival from the threat of economic collapse due to resource depletion demand the development of New Cities and Towns.

Citizens must organize into larger political units in order to apply specific land use and infrastructure designs. Community, metropolitan and regional development corporations—public in terms of their unity and size—but yet private, in that they will represent only those citizens in that geographic area-are required to greatly improve the environment. These institutions are giant cooperative corporations—owning all land and infrastructure and providing income to upgrade the general welfare of the community.

Existing corporations can be encouraged to form the development and promotion institutions which will bring about the markets for large scale systems as opposed to the disparate products which are now very much part of the problem.

ABAB-ISRAELI STRUGGLE

Current American policy in placing the exclusion of Russian influence, before the safety of Israel and before the prevention of war; “Step by Step” diplomacy without direct Russian and Palestinian involvement; forcing a useless dangerous Egyptian treaty upon Israel ; dangling Israel in a vacuum, by delaying $2.6 billion aid, thereby forcing Israel and Arabs to consider war; are unwise as well as dangerous. Fortunately, Russia moved in and prevented war by guaranteeing Israeli security at pullback to 1967 borders while pulling together Arab unity.

Imagine the lunacy or brilliance of American policy currently considering financial aid to Egypt-by paying off Egyptian debts to Russia, for aid and influence which Russia will continue to use to deny peaceful settlement until Russia is included as an equal partner in the peace finding process.

Nothing short of direct and absolute American and Russian cooperation is required for MIDEAST and world peace.

KOREA AND OTHER NON-DEMOCRATIC GOVERNMENTS

South Korea must be given free speech and free political process, with the wise understanding that several policy alternatives offering peace and mutual disarmament with North Korea will result. The Koreans do not want to be slaughtered by another Anti-Communist machine, which denies their rights to self-determination—as we denied the Vietnamese by refusal to honor the 1954 Geneva requirement for free elections.

The U.S. treaty commitments to South Korea, Chile, the Phillipines, and to other non-democratic governments mean nothing when compared to the urgency, self-interest and global interests of cooperative policy with Russia and China.

Self-determination of the nations must take precedence over the monetary and self-destructive habits of the cold war.

Either the Third World nations are to be used as fodder for the U.S. Military Industrial machine which is served by the “Limited War strategy," or the third world is to be used as the proving ground for cooperative economic development.

The dependency of the world upon American freedoms, democracy and economic power will ensure peace unto all the generations.

Détente and cooperative policy with Russia and China demands an end to conflict with satellite or Third World nations.

PLANNING

Development strategies required to achieve global goals—to include plans and designs, incentives and disincentives—must be provided by global and national organizations.

Planning must become an open public process. Consumption for the purpose of achieving global goals and improving the social, economic, and cultural environment-must replace consumption for the sake of consumption. New Institutions must be structured to achieve profits in the course of serving the public and environmental interests.

For environmental and conservation purposes, high prices and fixed production limits must be set for automobile and for oil consumption, for example. Price controls and tax policy must be used to control consumption. Investments will be planned and implemented by SDR's allocations.

Price controls, tax policy and production controls will be used to curtail or expand consumer consumption. Absolute control is required to orient the world toward achievement of global goals. Personal, community, metropolitan, and national incentives must be structured to spur progress toward those goals.

The multinationals must be internationalized and given global control of markets and resources; and the global criteria for regulations must be structured through the UN. The MNC's must become the common apparatus of global economic management. The alternative is complete anarchy muscled by the constant growth in military power and absolute destruction.

The only way the super powers can translate their military, political and economic power into a surviving power and influence for furthering world progress and unity is by the conversion of their influence via the MNC's, by democratizing the UN machinery and by expanding the economic planning and regulatory functions of the UN.

The cooperation among the Super and Major powers must be complete enough to stop the global destructiveness of increasing militarization.

Free and equal discussion among all nations will and must bring liberty and survival.

THE CITIES OF AMERICA

The critical problems of ghetto destitution and crime, the hopelessness of 40% unemployment for black teenagers—must be a central concern for an NIEO. The divisiveness of American society must be healed by the establishment of bold, challenging and inspiring global goals to uplift the spirit of people everywhere. Global peace is not a dream, but rather the necessity of survival.

INFLATION

Inflation must be allowed to suffer those who do not take positive steps to avoid the dying unecenomic, overpopulating, overconsuming and conflict-oriented society. Inflation may be considered the incentive or stimulant to establish a New Global Economy or an NIEO. Rebates from administered prices must be offered to only those who step into the New Global Economy.

All citizens are invited to join or support the CNIEO, and to make the discussions and plans for an NIEO—as their demands of politicians to build a worldwithout inflation, depression and conflict. The political will and planning for peace must precede the achievement of peace.

WORLD FEDERALISTS, USA,

CHICAGO REGION INC.,

Chicago, Ill., June 3, 1975. Senator CHARLES H. PERCY, Nero Senate Office Building, Washington, D.C.

DEAR ... [SENATOR] : The hearings which your Subcommittee has been holding on "The United States and the United Nations” offer an exciting possibility of re-orienting our foreign policy toward the future world rather than seeking vainly to preserve the past. I ask you to include this letter, if possible, in the record of your hearings and among the views you have invited others of us to submit in writing.

During the past ten years or so, because of my concern for the future of the human race, I have borne the responsibility of President of the Chicago Regional Council of World Federalists, USA. I am writing on behalf of world federalists in our area who share with me the goal of a self-government of humanity.

Since the beginning of our time on earth mankind has fought wars, between tribes, between cities and nation-states, and more recently on a global scale. As long as there has been an exterior enemy, our armies and fleets have sought each other's destruction. This is no longer a possible way to live. There is no longer an exterior enemy. Humanity is one, the world is one, and the enemy is ourselves. We can continue to live on earth only if we become a civilized race able to control our suicidal urges. This is a tough thing to ask of the savages we still are. But if the history of our own nation proves anything, it is that larger communities of human beings are, in fact, becoming capable of government.

The role of the United Nations is central to human survival. If it didn't exist, we would have to invent it. If it has obvious shortcomings, it is up to us, not to someone else, to improve the structure and powers under which the United Nations now operates. Many Americans do not yet see this. They think the old way of war, armaments, intrigue and forces is the “normal” process of foreign politics. A hallowed place in our history awaits the leader who grasps that strengthening the United Nations should be a main aim of United States foreign policy.

Smaller nations have already discovered in the United Nations a source of unity and power. It takes vision for a larger nation to foresee that the supreme opportunity which the United Nations offers is imperative to the nations of the earth which are already great and powerful. Such great nations as the United States have the most to gain, or to lose, by the success or failure of world political institutions. The United States, at the celebration of our second century of nationhood, is uniquely fitted for leadership in the development of a self-government of mankind. Our history points in a straight line to this destiny. The newer and smaller nations need and want what is best in this kind of Americanism.

The United States should support a conference to review the Charter of the United Nations. Our enlightened self-interest will ask that we support a strengthening of the functions of the United Nations, and will urge, for instance, that among measures to this end we seek a more realistic system of representation of great and small nations in the General Assembly—a necessary step, from our point of view, in order to make the United Nations a more workable world

forum. This will have, to you, a familiar ring of political bargaining. This it will be, and to the common good.

It is a matter of pride to us that Chicago world federalists have taken a leading role in producing proposals for strengthening the United Nations. Our members have conducted studies summarized in the report Freedom in a Federal World which includes a practical formula for fairer representation in the General Assembly. We have led an international committee in developing a set of 15 Proposals for United Nations Reform, worthy of immediate consideration by a review conference, available in English, French, Spanish, Russian, Chinese, Japanese, German and Dutch texts. Under separate cover I am sending you copies of these two documents, which you may find useful as resources in your present study.

My plea for American leadership toward a self-government of the human community is not just the idealism of a liberal. It is a demand of modern circumstances which does not depend on utopianism. It is a case of grinding necessity. An age of terrorism and military insecurity, a period in which we are poisoning the seas and the soil and the atmosphere, an era in which the depletion of our resources is leading to an international energy crisis, cries for the creation of institutions to govern the global problems which nations cannot govern for themselves.

The life of influential segments of our population in this country has become so comfortable, and our influence so overriding, that our sin is complacency and our temptation is to hope if we do nothing our problems will go away. One thing is certain. If we do nothing our problems will get worse. The difficulty which Congress is experiencing in the construction of an effective energy program for the United States indicates something of issues which an international parliament will encounter. It will no doubt prove necessary to establish international regulatory agencies with a considerable degree of autonomy. But it is even more imperative that international agencies be responsible to the world's people.

Issues which affect human life and death are today joined in your Subcommittee. We hope you and your colleagues will find the statesmanship necessary for this task. With warm personal regards. Cordially,

EDWARD J. SPARLING,

President.

WORLD FEDERALISTS, USA,
NEW JERSEY BRANCH, INC.,

Wayne, N.J., June 11, 1975.
Senator SPARKMAN,
Chairman,
Senate Foreign Relations Committee.

DEAR SENATOR SPARKMAN: Please find enclosed the testimony prepared for the record of your United Nations hearings.

I commend you and Senator Percy for focusing attention on the United Nations and the role the United States should play in the UN.

We look forward to continued contact with you and the committee regarding ways to reform the UN. With best wishes, Sincerely,

WALTER HOFFMANN,

Chairman, Ex. Council. Enclosure.

THE CASE FOR UNITED STATES LEADERSHIP FOR U.N. REFORM

(By Water F. Hoffmann) The United States and the world are again entering a rare cusp—a special time for advancing world peace, prosperity and justice. On December 17, 1974, the United Nations General Assembly decided to invite suggestions for ways to strengthen the U.N., including charter changes. The World Federalists of New Jersey are providing the national leadership for U.N. Reform among the U.S.

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