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capitalist crisis by taking socialist measures and his complete devotion to the capitalist cause.

What is really worrying Callaghan and the Labour leaders is not all the damage their pro-capitalist policies have inflicted on British workers, it is rather that he has not been able to inflict enough.

Now after two years of falling real wages the crisis of capitalism in Britain is obviousiy as serious as ever.

Figures published last week showed that the increase of capitalist profits which happened in the early part of 1977 came to an abrupt halt in the last quarter of the year.

Softened-up

This is a warning that, despite the honeyed words of Healey and Callaghan about the health of the economy, the capitalist class and its agent, the coalition government, will continue their economic attacks on the working class.

Callaghan's frantic international visits are aimed to persuade the capitalists of West Germany and Japan that if they temporarily ease the economic problem in Britain by increasing their imports then the British working class can be more effectively softened up for the inevitable next round of economic attacks.

A hint of the severity of these is given by last week's announcement of the plan to turn 40,000 workers out of work in the steel As such attacks continue to grow it will become increasingly difficult for Callaghan to convince anyone that the crimes are done by "foreigners", , when everyone can see it is the Labour Party leaders who are holding the weapons.

266 delegates and over 1500 visitors, including some from overseas and 50 members of the Peoples National Party youth (UK) gathered in Llandudno this last weekend for the 17th National Conference of the Labour Party Young Socialists.

The large turn-out reflects the determination of layers of youth to fight back against the attacks being inflicted on them by the Lib-Lab coalition in an attempt to make workers pay for the bosses' crisis.

But they found no political direction from the platform which, like the conference itself, Nas dominated by the 'Militant' tendency.

Consensus

Apart from a few open reformists such as Clause 4 and Tribune supporters there was a general consensus that capitalism has exhausted its potential for advancing the interests of the working class, that a socialist transformation of society is necessary.

But 'Militant' supporters were unable to offer any clue as to how this transformation could be brought about.

Their programme even denies the need to break the Lib-Lab coalition and fight for the removal of the present right wing leadership of the labour movement as part of the fight for socialist policies.

Instead of this, demands such as 'the nationalisation of the 200 monopolies under workers control and management' are placed on the present "Labour"

Pressure group

And the refusal of 'Militant supporters to recognise and confront the crucial role playec by the reformist and class collaborationist leadership in driving down workers' living standards cultivates the grossest illusions ithese bureaucrats.

The result is that though the LPYS, in the eyes of mary a 'left' pressure group on the rigs: wing.

EDITION The Labour Party Page of next week's 'Socialist Press' will carry a fuller report and analysis of the Labour Party Young Sorialists Conference and the politics of the Militant Group.

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supporters, is a revolutionan movement, in practice it remains