ration of building "Trotskyism in one country."
THE SLASH IN THE RICE RATION IN. CEYLON
[The following statement was issued by the Political Bureau of the Lanka Sama Samaja Party (Revolutionary) on January 9. It deals with the announcement. by the United National party regime December 17 that the rice ration is to be cut in half, from two measures (about four pounds ) a week for each person to one measure.
[Rice,.the staple food of the people has been subsidized by the government for some years. The population of Ceylon requires about 900,000 tons of rice a year. Of this, 500,000 tons are imported (from China, Burma, Thailand, etc.). The balance is purchased locally at subsidized prices; i.e., much higher than prices on the world market. =:
[The foreign exchange involved is about Rs.300,000,000 (one rupee = US$.21). Together with other imported subsidiary goods, the foreign exchange involved in the food bill is very large for Ceylon -- some Rs.450,000,000. Ceylon earns foreign exchange almost exclusively from tea, rubber and coconut. The sector of industry devoted to manufacturing is extremely weak and small. In this context, particularly due to low prices in tea, rubber and coconut, the mounting import bill frequently leads to a crisis in foreign exchange.
{This crisis. in turn stems from the crisis of the economy -- an import-export
economy based on the plantations. All governments have sought from time to time to resolve the crisis in foreign exchange by drastic cuts in food subsidies and social services. It has been the political repercussions that have held back all governments from striking more frequently at the living standards of the people.
[In 1953 the United National party, headed then too by Dudley Senanayake, raised the price of rice from 25 cents a measure to 70 cents. The UNP government also raised train and bus fares, postal rates, etc. This led to a mass uprising in August of that year. Again in 1962, under Mrs. Sirimavo Bandaranaike, the Sri Lanka Freedom party regime sought to cut the rice ration. The attempt was abandoned in face of certain defeat in parliament and open opposition among the people.
[Since coming to office in March 1965, the UNP government has been making preparations to withdraw subsidies and cut down on social services. The World Bank has repeatedly insisted on this as a condition for aid. ]
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The reduction of the rice ration by one measure is a severe blow on the people. By this action the government has deprived the people of a substantial portion of their staple food. Their decision.to give one measure free is evidently in the belief that the people, for that reason, would be less inclined to oppose and resist the government on the rice cut.
The action of the government to cut the ration is not the result of a sudden décision but the implementation of a plan laid well in advance. The excuse that there is a shortage in the rice~producing countries is urged only to conceal the truth that what the government is faced with is the crisis of foreign exchange.
This foreign exchange crisis stems directly from the crisis of the capitalist economy, which has been manifest now for several years. In fact very soon after taking office the UNP government was complaining that the country was in the "throes of an economic crisis." It may be recalled that it was the crisis of the economy that found open and acute manifestation in 1952 during the :first Dudley Senanayake government, and more recently in 1962 during the Sirimavo Bandaranaike government. It is the further deepening of the economic crisis that the country is faced with today.
This present crisis is rooted in the colonialist plantation economy built by British imperialism in this country. In this setup, economic development was practically confined to tea, rubber and coconut production to the serious neglect of domestic agriculture and the manufacturing industries. Despite the changes that have taken place since 1948 all past governments were incapable of undertaking the development of ‘the manufacturing industries. In the field of domestic agriculture, so-called colonization and irrigation projects, involving a colossal expenditure of money, have failed to raise rice production and the production of subsidiary foodstuffs to levels adequate to meet the growing needs of the people.
For many years now, continuing conditions of economic stagnation in the context of a rapidly increasing population has been the prevailing picture in the country. In such a context depressed export prices of tea, rubber and coconut, with the continuing manipulation of the market for these products by imperialism, the foreign exchange earnings fall far short of what is necessary to meet the rising bill for essential inports, including rice, the staple food of the people and raw material and machinery for new industries.
The UNP government, as well as all past governments, have sought to move out of recurring conditions of acute crisis in the economy by resorting to drastic reduction of essential imports, withdrawing or cutting down on food’ subsidies and social services and by enforcing a general squeeze on consumption by the people. It is precisely in furtherance of such policy, and following the dictates of their mentor -- the imperialist-controlled World Bank, the UNP government has now effected a cut in the rice subsidy. It is inevitable that the government will seek to increase still more the burdens of the people and depress still more the already low living standards of the people.
The way out of this crisis, consistent with the protection of the interests of the people, is the immediate and complete take-over of all commerical banks, the stopping of the transfer out of the country of all dividends and profits, nationalization without compensation of all estates. But this is just what this government and all capitalist governments will not do.
The government is conscious that the present blow on the people is a severe one and that the people will oppose and resist this action of the government. That is the
reason why the government has armed itself with emergency powers. Undoubtedly, the government plans to stifle opposition and use the police and the army against the people and force them to submit to their blows. It is to further their plans of using force to suppress the people that a so-called Land Army of 100,000 unemployed youth is to be organized.
The action of the government has affected adversely all sections of the workers, wage-earners, poor peasants and the middle classes. Mere protests and resolutions in parliament will not easily frighten this government to undo what they have already done, and to abandon their plans to strike further blows. The people cannot wait till a general election to obtain relief. What is imperative is the immediate mobilization of the people to oppose and fight the government on this issue. It is the view of the LSSP(R) that the widest and most effective mobilization of the people could be achieved only through a united front of trade unions, political parties and people's organizations in the perspective of action against the government on this issue.
Edmund Samarakkody
Secretary
Lanka Sama Samaja Party (Revolutionary)