Khomeini calls Carrer

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LAMBETH PEOPLE TO THE Full scale economic war is now raging between the US imperialists and : the reactionary forces of Khomeini's 'Revolutionary In this conflict, each side has already resorted to aggressive measures which at the same time dangerously undermine its own position.

Since the occupation of the US embassy in Tehran, one outflanking manoeuvre has been set in motion after another as Carter has gambled desperately to call the bluff of the counterrevolutionary regime in Iran.

Iranian threats of a halt to oil supplies were checked by Carter's embargo on direct imports of Iranian oil.

Iranian threats to withdraw all funds from the US were checked by Carter's freezing of virtually all Iranian assets in the US, and in subsidiaries of US companies.

The escalation has continued with the ban on all sales of oil to US companies that have been imposed by Khomeini's government.

Carter Carter's initial embargo was largely a publicity gesture; the US imperialists expected to shunt the supplies they needed from one port to another at their convenience, while they exploited the opportunity to drive on with the energy conservation' programme. In this scenario, the crisis was to be brief with negligible long-term effects on US oil supplies.

But Carter's bluff has been called in turn. The move to freeze Iranian assets was a desperate step that will have profound and enduring effects on the economic crisis of imperialism.

It may in the short-term produce a situation where oil companies are forced to stop making payments to Iran in dollars, and switch to other currencies-thus weakening the dollar still further.

More generally, this assetfreezing has alarmed other states with substantial holdings in Cont'd page 2