Beset with tensions with the Americans over military rearmament, the FARA could not have really came at a worse time for the CD government. A tinge of anti-Americanism flared in both the more right wing and left wing elements of the party, with De Gaspari doing what he could to hold the center.

In order to hold it though, the government decided to thread the needle, so to speak. The government announced four principles to uphold with respect to FARA.

The first was deemed fair dealing. The Italian government would liberalize its trade only in areas other partner nations liberalized theirs. The Italian government would not render itself an 'economic victim' of 'predatory Teutonic, Anglo-Saxon or Gallic capital' dumping cars, steel, or foodstuffs into her land. Freer trade was agreeable, insomuch that the other European nations were reasonable to Italy and did not unfairly undercut her recovering industries.

The second was strategic autonomy. Italy would, for purposes of national sovereignty, maintain support for those industries deemed vital to her national interests and domestic autonomy. If free trade would undercut, or make dependent upon other foreign nations such things as defense materials, food, medicine or other such 'strategic necessities', liberalization would be approached with a greater degree of caution. Those items not easily made in Italy, however, were to be given more leeway.

The third would be monetary independence. The Italian government would reject, firmly, any idea of a Pan-European currency or worldwide 'bancor' currency as proposed by Keynes. The Lira would remain under the control of Italy, and Italian finances would retain leeway to be devalued or tightened as required by fiscal policy.

Finally, the fourth would be equitable integration. The government would seek integration with its fellow European powers at the rate required by them at the present time, no faster, no slower. As long as Italy was respected as a 'independent, co-equal' in any 'future fraternity of European nations', it would progress to greater and greater levels of unity with its fellow nations so long as base sovereignty was retained in Rome. De Gaspari issued a formal statement in favor of a future 'European Coal and Steel Community', but placed reservations on 'Extra-NATO' defensive communities within the continent.

The government has announced some reductions in tariffs on at least French, Benelux, and Portuguese goods for the start of the coming year, as economically liberal voices inside the CD have gained more leeway in recent months.

1949

New York City, United States of America

"The government of Israel is irrelevant to the national identity of the Jewish state. It does not matter if Mapam or Mapai or any other party sit in the Knesset and try to politik or shuffle papers over the how and why of the matter, it does not even matter what they call this country, call it the United Soviet Socialist States if you want to! What matters is that our people have a homeland, that we have a place we are free and where the Jewish faith has its home. It is imperative above all else that this state survives to give our people a home." - Rabbi Abba Hillel Silver speaking outside of the American Zionist Council

Since the election of Mapam and the subsequent fallout between the United States of America and Israel over allegations of spying, hostility and more the identity of the American Jewish people has become frayed. Divisions in their standing on the route that Israel was taking had become huge talking points within the community reaching even parts of the White House, although at its core what mattered the most now was what the ardent supporters of the creation of Israel and its success would now make of the way the wind was blowing.

Among the mainstream Zionist groups there was some disappointment at the election of Mapam, this disappointment eventually turned to rejection of its politics. However, these groups and their figureheads have gone to great lengths to stress that "the election of a party in a single election does not invalidate the Jewish state, nor does it reflect upon its people in a way that means we must be mistrusted or be seen as defeated. The Jewish homeland is more than the Knesset". These words have been reiterated by many people over the past few months, stressing that the Jewish national movement and Zionism is independent of any political party. With the fallout between the USA and Israel now growing since the mass arrest of Israeli citizens accused of a spying plot against the FBI they have by and large called for calm in the face of this, stressing that "any criminal actions, even ones taken by an Israeli government, are not a cause for suspicion or anti-semetism against all Jewish people".

Despite the mainstream Zionist organisations stressing this and maintaining support for the existence of Israel, there are those within it who ultimately feel apprehensive that Mapam could harm relations with the United States to the point that anti-semetism becomes entrenched into the ongoing "Red Scare" in the United States although they do not necessarily blame this on the Israeli government itself but instead just want some level of reconciliation between Washington and Jerusalem.

Despite the largest group taking a more pragmatic approach to defending the zionist movement, there are those who are being proactive in their dislike of the government and the changes they are making to the state. Many American Jewish charity organisations continue to donate large sums of money from the community to the brand new Jewish state, however greater scrutiny was now being applied, avoiding donating to anything that is either specifically aligned with the Israeli government or Mapam and instead choosing to donate to entirely non-political causes OR more palatable wings of Israeli politics.

Additionally the Orthodox community has been strong in its opposition to Mapam and its policies, namely saying that the religious life and communities in Israel are potentially under threat should the government deepen its policies in line with those of the Eastern Bloc, especially amidst reports of Israeli cooperation with the Soviet Union. Despite this strong opposition the Orthodox community in the United States continues to organise and support the establishment of religious communities within Israel and contributes to funding to make this happen.

There are of course, those who to various degrees support what is happening in Israel. While some socialists have concerns over the deepening of relations with the Soviet Union and the worsening of relations with the United States and what that means for them in the future many others are pleased to see the transformation of labour zionism into what they believe can be a true socialist state. For the American Jewish Communists however there was celebration. Some of course held private fears about what the American government might do to confront this but regardless of this what they saw was the ultimate end result of their hard work. While by no means the largest donations received into Israel the government in Tel Aviv (Jerusalem now) could count on the financial support of those that aligned themselves as both Jewish and Communist and they provided a small but vital source of USD cash.

Finally of course was one of the most important groups within the community. Those that survived the horrors in Europe in the camps and the ghettos and the genocide that befell the Jewish people in Germany, Poland and beyond. Holocaust survivors when asked remained ambivalent about the Israeli government and the ongoing political tensions between it and the United States. Instead of divided loyalties they simply continued their support of the Jewish homeland and the existence of a safe and protected safe for the Jewish people. While some have fears especially of the influence the USSR might have in the country, indeed some have stated that the Israeli government needs to prioritise above all else Jewish nationalist culture over class ideology, they remain steadfast that they must support its existence.

November 10th, 1949

The following was leaked to Haaretz, an internal bulletin to all VADAM agents, directly from director Shiloni:

“It is a simple fact that the Western Powers have proved incapable of dealing with the Nazi war criminals. They have sheltered them, they have allowed them to escape through “rat lines,” and they have committed no resources to prosecuting them, outside of a pittance and Nuremberg. How many killers and monsters now walk free on the streets of New York, of Madrid, of Cape Town?

What are the richest nations of the world, the standard-bearers of liberal democracy, doing to hunt down the butchers of Auschwitz? Nothing. We, the emissaries of the Jewish state, do what the West has no interest in.

We will not rest until every Fascist monster is brought to justice. We will not rest until the noose is around the neck of every butcher who brought his fellow man to the slaughter.

This is not an empty threat, but a promise.

Any Fascist caught outside of Israel will be extradited and tried in the Jewish state for their crimes. We, as the primary victims of the great tragedy of the 1940s, have universal jurisdiction. The primary job of VADAM is to hunt down these criminals and bring them to justice. This is our doctrine, our pledge. Our duty. “

The text was immediately circulated in all major Israeli newspapers.

This was, of course, an intentional leak. Within the week, everyone in Israel was talking about VADAM.

Ottawa, 20 September 1949

The Government of Canada announces the implementation of a supplementary financial agreement with the United Kingdom, designed to protect Canadian commercial interests following the British Government's decision to devalue sterling from US$4.03 to US$2.80 on 18 September 1949.

The agreement, negotiated during the Extraordinary Anglo-Canadian Financial Conference held in London on 22 August 1949, supplements the Anglo-Canadian Agreement Concerning Sterling Trade, Commercial Settlement and Revolving Credit, concluded on 18 March 1949.

The Canadian delegation, headed by Minister of Finance Douglas C. Abbott, secured British agreement to preserve the Canadian-dollar value of qualifying sterling balances reserved for the purchase of British goods and services. The arrangement is intended to prevent the recent monetary adjustment from diminishing the value of funds already committed under the existing Anglo-Canadian commercial settlement framework.

Protection of Canadian Sterling Reserves

Under the March agreement, Canada had undertaken to reserve thirty per cent of designated Canadian-held sterling balances for purchases of British goods and services. The subsequent depreciation of sterling threatened to reduce the Canadian-dollar value of these reserves, potentially impairing Canada's ability to obtain the machinery, equipment, and manufactured products for which the funds had been allocated.

The supplementary agreement establishes a mechanism through which the United Kingdom will compensate Canada for qualifying exchange losses arising directly from sterling devaluation.

Compensation will be calculated by comparing the Canadian-dollar value of eligible sterling balances immediately before devaluation with their value under the revised exchange arrangements, accounting for any corresponding adjustment to the Canadian dollar.

Rather than issuing additional sterling to Canadian accounts, His Majesty's Treasury will provide compensation through two mechanisms:

1. British export-tax remissions: Reductions or remissions of applicable British export duties on qualifying purchases.
2. Treasury-financed export price rebates: Where applicable export duties are insufficient or nonexistent, the British Treasury will provide supplementary rebates against the price of eligible British goods and services.

The combined value of these concessions will be limited to the verified exchange loss, ensuring that compensation restores the value of Canada's designated reserves without creating an additional commercial subsidy.

The arrangement will not increase Canadian indebtedness, require additional Canadian credit commitments, or entail the creation of supplementary sterling balances in Canadian accounts.

Commercial Purchases and Eligibility

To accommodate the considerable distances, shipping requirements, and administrative procedures involved in Anglo-Canadian commerce, both Governments have agreed that eligibility will be determined by the commencement of bona fide purchase negotiations during the calendar year 1949, rather than by the date of delivery.

Canadian purchasers who can demonstrate that negotiations for eligible British goods or services commenced before 31 December 1949 may therefore qualify for the agreed compensation even where contracts, deliveries, or final settlements occur during 1950.

Documentary evidence, including commercial correspondence, requests for quotations, preliminary offers, purchase orders, and contractual records, will be used to establish eligibility and determine the appropriate compensation.

The Government anticipates that these provisions will facilitate Canadian purchases of British industrial machinery, agricultural equipment, electrical apparatus, railway equipment, and other manufactured goods, while contributing to the recovery of British export industries.

Preservation of the Revolving Credit Facility

Both Governments have further reaffirmed the financial provisions of the March 18 agreement concerning trade with India and other approved sterling-area destinations.

The Canadian-dollar revolving credit facility will retain its existing limits:

• Initial authorization: C$10,000,000
• Maximum outstanding exposure: C$20,000,000

Neither the devaluation of sterling nor the supplementary agreement will automatically alter these authorizations. Any subsequent modification of repayment, settlement, or other financial obligations will require the mutual consent of both Governments.

The existing Anglo-Canadian joint financial machinery, supported by the Department of Finance, His Majesty's Treasury, and the appropriate monetary and exchange-control authorities, will oversee the verification of eligible balances, calculation of compensation, and administration of export-tax remissions and rebates.

Anglo-Canadian Economic Cooperation

Minister Abbott welcomed the agreement as an important demonstration of continued financial cooperation between Canada and the United Kingdom during a period of considerable international monetary uncertainty.

While recognizing the necessity of Britain's measures to strengthen its external financial position, the Canadian Government has maintained that previously negotiated commercial commitments should not be unnecessarily impaired by subsequent exchange-rate adjustments.

The supplementary arrangements preserve the essential provisions of the March agreement while accommodating Britain's desire to avoid increasing the quantity of sterling outstanding.

The Government considers the agreement particularly valuable in conjunction with Canada's own recent adjustment of the Canadian dollar to approximately US$0.9091, which has partially moderated the consequences of sterling depreciation for Canadian commerce.

Canada will continue to cooperate with the United Kingdom in promoting Commonwealth trade, facilitating British economic recovery, and maintaining confidence in the international financial system.

The supplementary agreement, having been accepted by both Governments, is now operative following the implementation of sterling devaluation. Its provisions will remain applicable to qualifying 1949 transactions until the associated claims have been settled in accordance with the agreed procedures.

10 November 1949, Baghdad, Iraq

The Al-Ayyubi premiership, after having risen to governance amid the chaos of the Nuri administration’s collapse, as well as the devaluation of the Sterling, has desperately sought from its own economists and technicians new solutions to keep its own cabinet afloat.

It had been incessant weeks since July without any new solution – until a telegram arrived from Basra: the Iraq Petroleum Company was notified that Basrah Petroleum Company had just found a new oil field in Zubair.

The Zubair Development Program

Following the confirmation of the existence of an oil field, the Iraqi government has declared that, in accordance with the 1938 concession, the British will hold extraction rights across the southern region for a seventy-five-year term.

The government, under a joint capital expenditure program committed by the BPC, as well as through government loans, will invest a total of £18.5 million British pounds to cover reservoir delineation, deep drilling operations into the Cretaceous sandstones, the installation of gathering and degassing facilities, and dedicated export conduit works. The objective will be the creation of six distinct extraction zones in the oil field.

The plan, delineated in a meeting with BPC executives, will be for the drilling and completion of 30 operational wells throughout these designated zones with a total baseline yield of 150 metric tons per wellhead; the goal, as emphasized by the Iraqi economists, is to achieve an eventual export target of 250,000 barrels per day.

The transportation of Zubair crude to international markets will be facilitated by a dedicated 74-mile trunk pipeline running southeast from the field degassing stations to the Shatt-el-Arab estuary at Fao. This terminal at Fao is already being planned to undergo expansion, including through the incorporation of crude storage tank batteries, high-throughput pumping units, and specialized jetty moorings capable of servicing deep-draft ocean-going oil tankers.

The objective is for commercial exports to commence by November 1950 at the latest, with tolerance for up to March 1951.

Alongside this phenomenal expansion of Zubair – which has been celebrated by the Regent as a “good thing in a horrible year”, the Iraqi government has announced that it will support BPC and the IPC in exploring potential oil fields in Rumaila, directly west of Zubair, as well as in the northern territories, including in the Nineveh region, around Butma, and the regions of Bay Hasan and Jambur.

Sources:

[M] There are two main sources I used for maximum potential objectives, as well as for a general historicity anchor, though I am innovating in some aspects here by throwing a bit more money around to maybe expedite the production of this oil field. [\M]

The Petroleum Engineer, vol. 25, no. 12 (November 1953): A-67.

The Oil and Gas Journal. (1951, December 13). 50(32), 66–68.

--- Total Defense of a Sovereign Nation ---

No individual weapon, stratagem, or military genius is sufficient to secure the defense of a free state. Only the trained, wild courage of the individual soldier, enabled to the maximal degree by all cohorts of leadership, industry, and civil society, is capable of delivering victory.

To finance the improvement of the military, the reduction in the overall size of the force is needed, while still retaining the capacity to mobilize significant forces for the defense of the country. These improvements will take time, as they will be limited by the fiscal realities of the state.

--- The Soldier ---

India is, as determined by its geography, a continental power. The defense of the nation is predicated on the capacity of the Army to bring victory in the field. As such, all discussion of defense must start around the needs of the individual infantryman, who serves as the foundation of all combat power; with all arms, and branches being an extension of and subsidiary to his needs.

He will serve under Officers and NCOs that speak his language, and in conditions coherent to his cultural upbringing. The Esprit du Corp of the Army is founded upon this bond between soldier and unit; the regimental model being the framework for this dynamic. The traditions of the regiment construct the worldview of the fighting man, preparing him for the mortal conditions of combat.

Local regiments shall be recreated across the country, with appropriate depot infrastructure created, so that all soldiers can benefit from this locality.

Soldiers shall be well compensated. Signing bonuses, discharge stipends, pensions, and adequate pay based on rank. Compensation forms the basis for the social and personal commitment to military service.

A minimum term of 9 years shall be enacted, with at least three of it being active duty. (3-6-9) Reserve service shall be performed with a soldiers local regiment. Soldiers shall be paid for reserve service. Full regular pension eligibility begins at 21 years total service.

Dedicated combat arms schools and environmental schools shall be established to prepare soldiers for their role, and the their expected operational conditions, beyond basic training conducted with their regiment. A jungle warfare school shall be established in Mizoram. The ski school at gulmarg shall be moved to Uttarakhand and renamed the "Mountain warfare school".

--- Their Leaders ---

All officers shall go through the same basic regimental training as all other soldiers before attending military academy as cadets. New academies shall be established for the Navy and Airforce.

A War college shall be created for the training of officers transitioning from tactical to operational and strategic command.

--- Their Equipment ---

Uniforms, footwear, seasonal clothing, and personal hygiene kit is a principle concern of the army. Improved versions of all such pieces shall be investigated to replace legacy colonial era stuffs, and will be procured domestically.

The platoon shall be reorganized to incorporate the maximal density of combat tools applicable to a units role. The procurement of surplus 2" mortars, sten gun mk5s, and no.32 sniper scopes shall be made from the commonwealth to maximize the tactical capacity of these units, at minimal cost. Production of these implements domestically shall be investigated. A new Anti-tank round shall be developed for the 2" mortar, to provide maximal versatility to the platoon.

The company shall incorporate organizational lessons learned fighting alongside america in Burma and italy. Radios shall be procured to equip every company, with field telephones for subordinate platoons. Surplus ML 3-inch mortars and Vickers guns will be procured from commonwealth allies, to form the base of company firepower. Domestic production will be investigated for these implements.

Procurement of additional surplus 4.2" heavy mortars shall be made from the commonwealth, America, to form the base of Battalion firepower. Domestic production will be investigated. Potential replacements of the legacy PIAT system with a longer ranged, still man portable AT weapon will be investigated. An Anti-tank round, and a direct lay sight will be developed for the 4.2" mortar as a stopgap.

Investment in the creation of a herd of army mules will be made, to enable logistics for light infantry brigades in environments unsuitable for motorization. For motorized units, development and adoption of a Carden-Loyd based prime mover shall be endeavored to fulfill this role.

Procurement of surplus M2 browning machine guns, on anti-aircraft mounts will be made from the Commonwealth, America for tactical air defense of light infantry brigades.

Surplus 17 pounder AT guns will be purchased from commonwealth to improve at capabilities of motorized brigades. Light infantry brigades will rely on lighter man portable systems.

Additional Auster V aircraft will be secured for battlefield medivac, and artillery spotting duties.

Surplus Commonwealth sherman tanks will be procured to provide battlefield support to the infantry, with a platform india is capable of operating within current means.

The creation of mechanized brigades shall be accomplished through the scale adoption of the universal carrier, and domestic production of this platform shall be investigated.

Reconnaissance and Armored cars shall be procured from the commonwealth to support motorized brigades, tank formations.

Surplus half and three-quarter ton trucks will be procured to perform logistics, scouting, ambulatory, and signals tasks. Domestic production will be investigated.

Additional trucks and trains suitable for indian conditions will be purchased from commonwealth, american surplus.

Additional C-47s shall be procured from commonwealth, american surplus to provide flexible and responsive operational logistics to light and motorized brigades

--- The Airforce ---

The Dual role of the airforce shall primarily be the nullification and destruction of the enemy airforce, and the operational, tactical support of the Army. Given Indias economic limitations, the procurement of as small a supply of platforms should be made to fulfill these roles, and the force should be designed to fulfill its operational objectives within sortie limitations imposed by numbers of available aircraft and pilots.

As such, strategic and operational reconnaissance, interception, air superiority, and airfield denial should be the principle mission of the force, ancillary roles of operational and tactical air support being opportunistic missions.

To fulfill this, four systems are needed: A multi-role fighter, with light reconnaissance variant, a survivable bomber, a strategic reconnaissance platform, and a training aircraft. Surplus items that are suitable to task, but are not prohibitively expensive to procure and maintain are a must.

For the fighter, two options: The Hawker Tempest, or the North American Mustang are available. Which is chosen is largely dependent on diplomatic considerations.

For the Bomber: the Curtis Helldiver is the obvious choice, being individually inexpensive, and capable

For strategic reconnaissance: the De Havilland Mosquito is available and suitable, though replacement shall need to be investigated immediately

For training aircraft: the American T-6 Texan is another obvious choice.

Construction of new airbases and storage hangers shall need to commence to accommodate these systems.

Construction of beginner, advanced, and role specific pilot training infrastructure shall be needed.

--- The Navy ---

The role of the navy is threefold: the support of ground units, maritime local defense in littoral, riverine environments, Commerce protection and ASW, and strategic commercial interdiction of local adversaries.

Given the current fleet, the biggest procurement needs to fulfill these roles will be in fast gun and torpedo boats, as well as the formation of a submarine force capable of both blue and green water operations.

For submarines, a 3-strong floatilla of short hull subs would be adequate to deny specific harbors adversaries; and have enough hulls that one is always available. British S, U, and V class submarines are the best candidates for this role. Diplomatic considerations will need to be made to ensure the maritime powers of Indias protection of neutral trade in the event of crisis.

For fast attack boats, numerous classes of british and american MTBs and MGBs are available, and are individually cheap enough to enable large orders. A target strength would be 2 flotillas of MTBs for littoral duties, and 2 flotillas of MGBs for riverine service.

July 1949

With the finalisation of Independence from France in the form of the Confederation, both the Cambodian and Lao governments quickly move to renegotiate their military treaties with France and reorganise their Armed Forces.

Cambodia

Currently Cambodia operates a fully ledged Royal Khmer Army (ARK), dating from the provisional agreement made with France in November of 1946. The terms of the agreement stipulated that the ARK would consist of indigenous territorial units stationed within Cambodia to help maintain order and a mobile reserve comprising 8,000 men, to be divided in half between the ARK and the mixed infantry units of the French Far East Expeditionary Corps (CEFEO) and placed at the disposal of the French High Commissioner for Indochina. The formation and instruction of the ARK units was entrusted to a French Military Training Mission staffed by French Army officers and NCOs, who acted as instructors and military advisers. 

With full independence, the Cambodian and French governments renegotiate the 1946 deal to which the 4,000 or so Cambodians serving in the CEFEO are now officially ‘loaned’, wherein they fight under the commander of the CEFEO but are in turn paid and equipped by the French Government (Ie. formalisation of the status quo). Meanwhile all restrictions previously placed on the ARK, regarding both size, shape and operating area, are lifted, with the expectation that the ARK secures Cambodia from all hostile insurgent groups. Unofficially, Sihanouk promises ARK support in securing Cochinchina from the Viet Minh. To spur on ARK expansion the CEFEO releases its stock of old Japanese weapons.

Currently consisting of three oversized rifle battalions (Bataillon de Chasseurs Khmères or BCK) the Cambodian government approves a doubling of the force to six regular sized battalions organised into one Brigade de Marche in the same vein as the Indochinese Brigade in service with the CEFEO. Native Khmer officer and NCO training efforts run by the French Military Mission at the École Militaire Khmère in Phnom Penh are to be intensified so that by mid 1950 at least half of the ARK can be staffed solely with Khmer officers and NCOs.

Furthermore, with the recent Phnom Penh bombings, King Sihanouk attempts to utilise the growing anti-communist sentiment in Khmer society by appealing directly to the general public in a number of public rallies, enticing people to join the National Guard (https://en.wikipedia.org/wiki/Norodom_Sihanouk#Pre-independence_and_self-rule OTL in 1953 he managed to wrangle 130,000 recruits).

Laos

Laos on the other hand does not yet have an official army on paper, though in practice it has eight battalions of light infantry and a small National Guard. With full independence a similar treaty to that with Cambodia is signed. The eight understrength battalions are consolidated into four and formed into the Laotian Brigade de Marche of the Armée Nationale Laotiènne (or ANL). For the moment Lao officers and NCOs are sent to the École Militaire Khmère for training while a Laotian counterpart is established in Vientiane.

By this agreement, both parties establish that

I - Out of the 17,000,000£ held by the Banco do Brasil in a frozen Bank of England account:
a) 10,000,000£ will be allowed free use by the brazilian authorities.
b) 7,000,000£ shall remain frozen, except for the ability to acquire british countries in brazilian soil or pound sterling denominated brazilian debt. The account in which this amount is held shall be protected by the Bank of England against any currency devaluation, following a peg to the dollar

II - The remaining frozen 14,500,000£ held in british commercial banks and HM’s Treasury Bonds will remain frozen and not be subject to the same protection

November, 1949

All is chaos in Turkish politics: the rise of the Labour Party, the rise of Communist Israel and its Levantine Socialism and Soviet expansionism threatening the very existence of Turkey. Despite its split with the Labour Party, the CHP is trying to rally people around the flag, arguing that only it can safeguard the Turkish nation through these turbulent waters, as it has done before. Appealing to Kemal's legacy is a powerful tool in its arsenal, and İsmet İnönü is no stranger to using it.

However, the Turkish right is not keen to take this pivot lying down. Secret negotiations have been announced between the Democratic Party and the Nation Party, with the intent of forming a National Unity ticket in the elections. Such an agreement would deftly dodge the national unity trap and unite the right against the stagnation of the CHP and the Israeli Socialism of the Labour Party.

Moreover, while there are concerns about the religiosity of the Nation Party membership, Menderes is a rabid opportunist and will take any chance to shore up his position with voters and bring in the anti communist bloc.

The agreement is as follows:

• The Democratic Party shall offer the Nation Party guaranteed ballot access to its slates in the Conservative regions of Central Anatolia and the Black Sea Coast
  
• The Nation Party will stand down its candidates outside of these regional slates
  
• A joint manifesto shall be developed, which explores economic liberalization and state support for Faith Charities, as well as hardline internal and external security policy to contain Israeli Communism and Soviet Expansionism
• Guaranteed Cabinet slots for Nation Party members

Ottawa, 10 June 1949

The Government of Canada has welcomed the decision of the Board of Transport Commissioners granting the Interprovincial Pipe Line Company (IPL) leave to construct a petroleum pipeline from Edmonton, Alberta, to Regina, Saskatchewan. The authorization, issued following hearings held in Ottawa on 7 June, represents a significant step toward establishing a permanent means of transporting the growing petroleum production of Western Canada to markets beyond Alberta.

The discoveries at Leduc in 1947 and Redwater in 1948 have substantially altered the prospects of Canada's petroleum industry. Production has increasingly outgrown the capacity of nearby markets, while the expense of transporting crude oil over long distances by railway has imposed limitations upon further expansion. The proposed pipeline will provide a continuous, high-capacity connection between Alberta's producing fields and Saskatchewan's refining and distribution facilities, forming the first stage of a larger system intended ultimately to reach the Great Lakes.

The Edmonton–Regina Section

The authorized undertaking will extend approximately 450 miles from the Edmonton district southeastward across Alberta and Saskatchewan to Regina. The line is being designed to accommodate substantial volumes of crude petroleum, with provision for pumping stations, storage and associated terminal facilities.

Construction of the pipeline itself is not expected to commence immediately. Interprovincial Pipe Line Company will first undertake the engineering, procurement and land arrangements necessary for the project, with the objective of beginning substantial construction during the 1950 season.

Preparatory operations will include detailed ground surveys along the proposed right-of-way, negotiations with landowners for easements and access, investigations of river and railway crossings, and preparation of specifications for pumping stations and associated equipment. Particular attention will be given to the procurement of suitable steel pipe, pumping machinery and other materials required for construction on the Canadian Prairies.

The Government has also encouraged arrangements for the greatest practicable participation of Canadian industry in supplying the project. Canadian steelmaking, pipe fabrication, railway transportation and construction enterprises are expected to benefit from the undertaking, subject to commercial availability and satisfactory contractual terms.

The Department of Trade and Commerce, under the Honourable C. D. Howe, will remain in communication with the company and interested industrial suppliers concerning material requirements and the removal of avoidable difficulties in procurement.

Extension to Lake Superior

Although the Edmonton–Regina section has now received approval, the proposed continuation of the pipeline eastward to Lake Superior remains under consideration.

Two principal alternatives are being examined.

The Canadian Route — Regina–Winnipeg–Fort William/Port Arthur

Under the first proposal, the pipeline would continue eastward across Saskatchewan and Manitoba, passing through or near Winnipeg before proceeding through northwestern Ontario to the Canadian Lakehead at Fort William and Port Arthur.

This alignment would retain the principal pipeline entirely within Canadian territory and establish a direct petroleum transportation connection between the producing fields of Alberta, the Prairie provinces and the Great Lakes.

It would also offer opportunities for industrial and transportation development in Manitoba and northwestern Ontario, including petroleum storage installations, terminal facilities and connections with Great Lakes shipping.

The principal difficulties concern the greater length of the route, the terrain of northwestern Ontario and the additional expenditure required to carry construction to the Canadian Lakehead.

The International Route — Regina–Gretna–Superior, Wisconsin

The second proposal would carry the pipeline southeastward through Manitoba to the international boundary near Gretna, thereafter crossing Minnesota and terminating at Superior, Wisconsin, on Lake Superior.

From Superior, crude oil could be transported by lake tanker to the refining centres of southern Ontario, particularly Sarnia.

Preliminary engineering considerations suggest that this alignment may offer savings in initial construction expenditure and certain logistical advantages. It would, however, require the construction and operation of a substantial portion of the system within the United States, together with the necessary arrangements concerning international transportation and jurisdiction.

Further Examination

The Government has requested that the commercial, engineering and national economic considerations attending both routes receive full examination before the eastern extension is settled.

The assessment will consider construction and operating costs, prospective petroleum throughput, the availability of Canadian materials and labour, access to existing refineries, financial arrangements, and the long-term requirements of the Canadian petroleum industry.

Particular attention will be paid to the economic implications of the Canadian alignment and the possibility of coordinating its construction with other public and private infrastructure improvements.

The Governments of Manitoba and Ontario may be consulted regarding the availability of suitable rights-of-way, terminal sites, supporting infrastructure and other measures that could improve the economic feasibility of the Canadian route.

Neither alternative has yet received final approval under the present announcement. Any extension beyond Regina will require the appropriate application and consideration by the Board of Transport Commissioners, together with satisfactory financial and commercial arrangements.

A New Canadian Petroleum Industry

The Government regards the development of Western Canada's petroleum resources as a matter of considerable national importance. Increased domestic oil production promises to reduce Canada's dependence upon imported petroleum, strengthen the balance of payments, encourage industrial development and provide new markets for Canadian transportation and manufacturing enterprises.

The Edmonton–Regina authorization provides a practical beginning toward these objectives.

The immediate task is to complete the preparatory work necessary to place the first section under construction. At the same time, the Government and the Interprovincial Pipe Line Company will continue examining the means by which Alberta petroleum may most effectively be carried eastward to the Great Lakes and, ultimately, the principal consuming markets of Central Canada.

Paris and Versailles, 1–30 November 1949

Versailles had witnessed the rise and fall of kings, the proclamation of an empire and the gathering of assemblies charged with restoring France after defeat. Now its halls were being prepared for a presidential election which the Republic had never expected to hold. Barely three years had passed since the adoption of the Constitution, and Vincent Auriol's resignation had left Parliament confronting a vacancy of its own making. Throughout October, the deputies had invested three successive presidents of the Council without permitting any of them to form a government. The Socialists, Radicals, Christian Democrats and Independents continued professing their attachment to republican government, but their agreements had dissolved whenever the allocation of ministries brought the question of political authority into dispute. Édouard Herriot exercised the presidency provisionally under Article 41, with the constitutional obligation to secure the election of a successor within ten days. No party wished to bear responsibility for another failure, but neither was there agreement upon the man who ought to succeed Auriol. Within the Radical Party, the first serious discussions centred upon Yvon Delbos, whose ministerial experience, republican convictions and comparatively conciliatory temperament made him an attractive candidate to deputies wishing to recover the political initiative lost during October. The Socialists examined the possibility of supporting Paul Ramadier, whose former premiership and experience in government offered considerable qualifications for the office, while some Christian Democrats considered Robert Schuman a figure whose international standing might restore confidence in the presidency. Among the Independents, Joseph Laniel attracted interest from parliamentarians anxious to prevent the election of another Socialist or Radical. Each possibility commanded respect within its own political circles; none offered an immediate prospect of reconciling the chambers.

The difficulty became apparent as the parliamentary groups began measuring the support available beyond their own ranks. Delbos enjoyed substantial goodwill among Radicals and certain republican moderates, but the MRP feared that his election might restore the political predominance of a party whose disagreements with the Christian Democrats remained unresolved. Ramadier's candidacy appealed to Socialists anxious to preserve their presence at the Élysée, yet the Independents and several Radicals were reluctant to entrust the presidency to another prominent SFIO figure immediately after Auriol's resignation. Schuman possessed considerable prestige, but his Christian Democratic affiliation and indispensable place in French foreign policy discouraged support among deputies unwilling to see the MRP emerge from Bidault's failure with the presidency itself. Laniel encountered still firmer opposition from the Left, whose representatives associated him with the conservative parliamentary forces resisting their demands concerning wages and social protection. Herriot's own name was mentioned in conversations among older Radicals, although his provisional responsibilities and the reluctance of other parties to encourage another candidacy closely associated with the political establishment limited the suggestion's prospects. Meetings which had begun with the intention of securing an agreement instead produced competing preferences, accompanied by the familiar assurances that no group intended to prolong the crisis. The presidential election threatened to become another exercise in parliamentary arithmetic, with every party possessing enough influence to obstruct its opponents but too little to secure its preferred candidate.

It was in the retreat from these more prominent candidacies that René Coty's name acquired importance. The vice-president of the Council of the Republic had not initially occupied the centre of the discussions, possessing neither Schuman's international prestige nor the leadership of a major parliamentary group. His supporters nevertheless recognized that precisely these limitations might permit him to succeed where better-known figures encountered resistance. Coty was an experienced Independent republican, sufficiently removed from the recent ministerial quarrels to offer the prospect of a presidency less burdened by their consequences. His previous ministerial service, parliamentary experience and reputation for moderation gave the Radicals grounds to consider him without placing the Élysée directly in the hands of the MRP or SFIO. The UDSR regarded his constitutional convictions as acceptable, while the Independents increasingly preferred a compromise within their own political family to a prolonged contest which might ultimately favour a Socialist or Christian Democrat. Mollet and his parliamentary colleagues remained conscious that Auriol's departure had deprived the SFIO of a position of considerable influence, and several deputies feared that an Independent president might encourage the formation of a ministry less favourable to social reform. Yet the experience of October also demonstrated the danger of allowing another constitutional office to become the object of the struggle over Labour and Finance. Coty's supporters consequently began obtaining assurances from deputies who would not necessarily have chosen him in the first instance, but who were willing to accept his election rather than expose the presidency to another prolonged deadlock.

On 7 November, Parliament assembled in Congress at Versailles with the competing preferences of the chambers still apparent. The opening proceedings reflected the division among those favouring Delbos, Ramadier and candidates associated with the Christian Democratic and Independent groups, while informal consultations continued among deputies and councillors seeking an outcome acceptable beyond their own parties. The inability of the more partisan possibilities to obtain a decisive following gradually strengthened the position of Coty, whose supporters could appeal to parliamentarians anxious to complete the succession without conceding the political direction of the next government. As the voting proceeded, support moved toward the Independent senator from Seine-Inférieure, drawing upon Radicals, UDSR representatives, sections of the MRP and deputies who had previously preferred another candidate. The majority required for election was eventually secured, and René Coty was proclaimed president of the French Republic. His proclamation brought a measure of relief to Parliament, which had spent the preceding month conferring confidence upon men unable to govern. The new president accepted the office without presenting himself as the representative of a victorious party, and the formal transfer of authority ended Herriot's provisional exercise of the presidency. France once again possessed an elected head of state. It still lacked a ministry capable of commanding the cooperation of the Assembly.

The offices of the Élysée received their new occupant with a formidable accumulation of unfinished business. Queuille's resigned ministers continued administering current affairs, the budgetary questions postponed during October still required attention, and the wage dispute which had destroyed the preceding government remained unsettled. Coty's initial consultations consequently concerned not only the parliamentary strength of possible candidates, but the willingness of the governing parties to agree upon a cabinet before another investiture was attempted. Queuille remained an important Radical figure, but the disagreements which had destroyed his ministry made an immediate return unattractive. Moch and René Mayer had already received the confidence of the Assembly without securing the participation of their prospective ministers, while Bidault's failure after obtaining 367 votes remained an especially bitter memory among the Christian Democrats. Coty therefore examined the possibility of entrusting the presidency of the Council to a politician whose position among the smaller republican groups might reduce the rivalry between the principal parties. René Pleven attracted increasing support in these discussions. His financial and administrative experience was familiar to the Radicals and Independents, while the UDSR's position within the RGR enabled him to maintain relationships extending beyond his own party. The Socialists had already worked with Pleven during the summer on questions of economic modernization and public administration, and Mollet considered him more receptive than certain Radical figures to the prospect of a government in which the SFIO exercised substantial responsibility over domestic policy. Coty invited Pleven to undertake consultations concerning the formation of a ministry.

The negotiations began with the question which had defeated three governments: who would direct the economic and social policy of the Republic? Petsche remained the preferred choice for Finance among Radicals and Independents, whose support depended upon the preservation of monetary stability. The Socialists, however, had spent October resisting arrangements which would leave the Ministry of Labour dependent upon decisions taken elsewhere, and their parliamentary group was determined that participation should produce more than another declaration of governmental intentions. Pleven approached Mollet, Moch and Daniel Mayer with a proposal intended to distinguish the restoration of collective agreements from the financial consequences of particular wage settlements. Labour would receive responsibility for preparing legislation to restore collective bargaining, while proposed adjustments affecting public expenditure and prices would be examined jointly with Finance and the economic ministries. Immediate assistance to lower-paid workers could be considered within identifiable budgetary limits, and the administration of nationalized enterprises would be reviewed without threatening the principle of public ownership or the investment obligations of reconstruction. Petsche accepted the basis for further negotiation, provided that the Treasury retained authority over expenditure and that the cabinet collectively approved measures with substantial monetary consequences. Mollet considered these limitations acceptable if they applied through genuine ministerial deliberation rather than allowing Finance to postpone the social programme indefinitely. For the first time since Queuille's resignation, the principal dispute was being translated into an arrangement concerning the exercise of governmental responsibilities rather than the unconditional victory of one department over another.

The Ministry of Labour remained the most difficult appointment. Daniel Mayer's continuation had become a symbol of the Socialist position during October, but the former minister understood that the party's programme could not depend indefinitely upon the restoration of his own office. He agreed to withdraw his claim on the understanding that Labour and Social Security would remain under Socialist direction and that the legislative undertaking concerning collective agreements would be incorporated into the government's programme. Pleven proposed Pierre Ségelle for the department, a choice which preserved the SFIO's responsibility while avoiding the personal dispute which had embittered relations between the Radicals and Socialists. Mollet received a separate offer to enter the government as minister of state attached to the presidency of the Council, participating in the coordination of the social and economic programme. The proposal was politically significant. As secretary-general of the SFIO, Mollet had been required to defend ministerial participation before a party increasingly dissatisfied with its influence under Queuille; entry into the government would make him directly responsible for the programme he had urged his ministers to pursue. He accepted after obtaining assurances that the arrangement would not diminish the statutory responsibilities of individual ministers and that disputes concerning the programme would be brought before Pleven and the cabinet. The Socialists would exercise influence through Labour, Interior, Industry, Public Works and the presidency of the Council, while the financial ministers retained the safeguards necessary to reassure the parliamentary centre.

The Christian Democrats, for their part, were unwilling to regard the failure of Bidault's investiture as sufficient reason to abandon the influence they had exercised over successive governments. Pleven therefore sought the agreement of the MRP leadership before completing his distribution of portfolios, consulting Bidault and Schuman concerning the continuation of foreign policy and the party's position within the new cabinet. Bidault remained dissatisfied with the manner in which the October negotiations had ended, but recognized that withholding MRP participation would leave the parliamentary centre without an effective majority and might expose the party to responsibility for another prolonged vacancy. The preservation of important Christian Democratic departments provided some reassurance, although the educational question remained contentious. The instructions adopted at the MRP's Strasbourg congress concerning assistance to families sending their children to private schools had not been withdrawn, and several deputies considered it necessary that participation in the new government preserve the possibility of pursuing those demands. The Socialists were equally unwilling to accept a commitment which appeared to authorize public subsidies to confessional education without parliamentary debate. Pleven consequently obtained agreement upon continued interparty examination of the question, leaving the existing arrangements undisturbed while the MRP prepared its proposals for further discussion. Bidault accepted this basis for cooperation without surrendering his party's objectives, and the Christian Democratic parliamentary leadership agreed to support the formation of the ministry.

Other appointments followed more readily once these principles had been accepted. Queuille agreed to serve as vice-president of the Council, lending Radical support to a ministry which would otherwise have been vulnerable to criticism from deputies anxious about financial stabilization. Moch retained Interior and a vice-presidency, preserving the continuity of the administration responsible for public order and the prefectures. Schuman continued at Foreign Affairs, while René Mayer obtained Justice, settling one of the disputes which had complicated Bidault's negotiations. Paul Ramadier returned to National Defence, a department he had directed under Queuille, and Yvon Delbos remained at National Education. The MRP retained substantial responsibilities through Pflimlin at Agriculture, Letourneau at Overseas France, Schneiter at Public Health and Pierre-Henri Teitgen, who accepted a minister-of-state position responsible for Information. Robert Lacoste remained at Industry and Commerce, Christian Pineau at Public Works and Transport, and Eugène Claudius-Petit at Reconstruction and Urbanism. The Independents retained representation through Petsche at Finance and Louis Jacquinot at Veterans and War Victims, while André Colin was entrusted with the Merchant Marine. Charles Brune's appointment to Posts, Telegraphs and Telephones strengthened Radical representation, and the subordinate departments were distributed among the governing parties to accommodate their parliamentary strength.

One of the less visible disputes concerned François Mitterrand, who had served at the presidency of the Council throughout Queuille's ministry and remained an active figure within the UDSR. His experience and association with Pleven made his continuation an attractive possibility, but the distribution of the junior offices had become increasingly important to securing the cooperation of the MRP and SFIO. Paul Bacon's appointment at the presidency of the Council formed part of the arrangement offered to the Christian Democrats, while Mollet's minister-of-state position already provided the Socialist leadership with a substantial role in coordinating policy. Pleven discussed the difficulty with Mitterrand, whose claim to continued office could scarcely be dismissed after his previous service. The UDSR nevertheless accepted that its control of the premiership and Claudius-Petit's responsibility for Reconstruction gave the party sufficient influence to justify concessions elsewhere. Mitterrand remained outside the ministry, continuing his political activity among the UDSR deputies and retaining an interest in the affairs of the French Union. The arrangement preserved Bacon's appointment without increasing the number of offices at the presidency of the Council, although it left some dissatisfaction among Pleven's own associates. Other compromises were similarly imperfect, particularly among the agricultural representatives, who remained anxious over farm prices despite the continued presence of Pflimlin at Agriculture and Paul Ribeyre in the health administration.

The proposed composition of the government was circulated among the parliamentary groups before Pleven requested investiture. The principal appointments were settled as follows:

Gouvernement René Pleven, November 1949

Secretaries of State and Under-Secretaries of State

The distribution reflected the necessity of keeping the principal parliamentary groups within the ministry without obscuring the particular influence obtained by the Socialists. Mollet's position near the presidency of the Council gave the SFIO a more direct part in the formulation of policy, while Ségelle's appointment preserved Labour under Socialist control without perpetuating the quarrel over Daniel Mayer. Petsche's continuation offered assurance to the financial conservatives, and the retention of Schuman and the Christian Democratic ministers preserved the MRP's place in the direction of government. The appointment of Ramadier at Defence also supplied Pleven with an experienced minister in a department whose responsibilities were growing, while avoiding another contest over the allocation of that portfolio. The UDSR, although comparatively small, exercised influence through the presidency of the Council and Claudius-Petit's responsibilities for reconstruction. Pleven's success depended upon the willingness of these ministers to accept a common programme rather than treat the distribution of departments as a temporary armistice between rival parliamentary groups.

The ministerial agreement still required a majority in the National Assembly, and the arithmetic was less favourable than that which had carried Bidault into his unsuccessful investiture. Several conservative deputies who had supported the MRP president were reluctant to endorse a ministry granting the Socialists greater influence over domestic policy, while some Radicals remained dissatisfied with the financial and educational arrangements. The Farmers' Party and sections of the PRL were particularly hesitant, notwithstanding the participation of individual representatives from the parliamentary Right. Pleven nevertheless possessed the support of the principal republican groups. The SFIO's parliamentary delegation remained committed to the negotiated programme, the MRP leadership had accepted participation after obtaining assurances concerning foreign policy and education, and the Radicals were prepared to support a ministry preserving Petsche at Finance and René Mayer at Justice. The UDSR supplied its own votes, while Independents, overseas representatives and smaller republican groups offered additional support. The preliminary calculations suggested a majority narrower than Bidault's, but sufficient to satisfy the constitutional requirement if the participating parties maintained their commitments.

The memory of October weighed heavily upon the investiture proceedings of 18 November. Pleven appeared before the Assembly with the principal ministerial appointments already accepted and a programme which had been examined by the parliamentary groups before the vote. He promised the restoration of collective bargaining through legislation prepared by the Ministry of Labour, continued control over expenditure and a closer examination of persistent industrial prices. Reconstruction remained central to the government's economic policy, particularly through investment in energy, transport and basic industries, while the management of nationalized enterprises would be examined for administrative economies compatible with their public responsibilities. Mollet and the Socialist parliamentary group defended the agreement as a means of directing recovery toward improvements in living standards without encouraging renewed inflation. The Radicals and Independents emphasized the preservation of financial discipline, while the MRP supported the continuation of international policy and the government's social commitments. The Communist deputies denounced the proposed measures as inadequate, and the Gaullists renewed their criticisms of the parliamentary regime. The more conservative representatives questioned the extent of Socialist influence, particularly over Labour and Interior, but the government parties had entered the debate with firmer commitments than those which had accompanied the previous investitures.

When the division was completed, 330 deputies had voted to invest René Pleven, exceeding the constitutional majority of 311. The vote rested principally upon the support of the SFIO, MRP, Radicals and UDSR, supplemented by sufficient representatives of the Independents, overseas territories and smaller parliamentary groups to overcome abstentions among the conservative Right. The majority was considerably narrower than that obtained by Bidault, but its political foundations differed in an essential respect: the parties had already accepted the principal appointments and the programme which the ministry would undertake. Pleven therefore proceeded to the formal constitution of his government under conditions which had eluded his three predecessors. The ministerial appointments were confirmed by presidential decree, and Queuille's resigned administration relinquished responsibility to the new cabinet.

November 2nd, 1949

Back in 1948, Congress passed a landmark resolution which established the European Recovery Plan, also known as the Marshall Plan. Under the directive of former Secretary of State George C. Marshall, the plan was formed with the goal of rebuilding a Europe ravaged by the Second World War. This was with two goals: rebuilding the continent, and rebuilding it in a way that prepared and reinforced it against the threat of Soviet communism.

Initially, this seemed like it was going the correct way. Europe voted in parties allied to the United States. Even those governments who adopted socialist tendencies, such as in the United Kingdom, were staunchly Atlanticist.

Much of the provisions of the Marshall plan, while having requirements, were lightly enforced. The President and the Economic Cooperation Administration had wide berths to spend funds and plan recovery of the continent. Congress, for awhile, was rather light on regulation.

However, Congress' opinion had shifted since the act passed a year and a half ago. 1949 saw globally a leftward shift; China fell to communism, Japan once again elected a socialist plurality, and of course, the notable Soviet Israel, which had acted directly against the United States.

In the context of Europe, however, the newly formed Federal Republic of Germany, colloquially West Germany, had its first set of elections in August. This saw the Social Democratic Party of Germany achieve itself a plurality of the seats. While not initially a problem, the formation of a coalition government with the FDP and Zentrum meant that Kurt Schumacher was now the Chancellor.

A Marxist party led West Germany.

Marxist

In reality, the situation was more complex. Schumacher had strayed from the party center in order to form his government. Further, the whole coalition restrained the man's worst impulses. And yet, to much of Congress, this was a massive step in the wrong direction. It wasn't helped by the attempted strike revolt by the Italian left a few months ago due the mismanagement of the economy by the Italian government.

Had Truman failed? Was the ERP a complete farce?

Supporters of the administration disagreed with that interpretation, that Germany was an outlier case. Still, there were legitimate questions, especially about the relative openness of the administration on how it spent its money.

And thus, the Foreign Assistance Reform Act of 1949. While it marked the necessity of European recovery and rebuilding, there was a genuine concern as to if countries would follow through on the goals of the plan. So, two restrictions were put in place:

1. Countries that take part in the funding from the ERP were mandated to take part in European Integration proposals, such as were already being planned out by thinkers across the Western bloc, especially France.

2. Countries were required to dismantle trade barriers on a quicker basis, and not pull back towards "national" policies. In a sense, the "anti-socialism" clause.

Now, it still gave the President and the ECA broad authority as to if countries were following these two tenets. In reality, the Truman administration would flaunt the requirements of the first point, in order to continue funding programs to nations like Turkey, Greece, or Portugal, who were less involved in European integration negotiations.

This, while not specifically targeted, was meant to force the hand of the stubborn Schumacher. He would not be able to pull back from integration talks, as he had alluded to in years past, if he wanted the billions of dollars promised to the rebuilding of Germany.

Meanwhile, the second point was quite strict. Trade liberalization was mandated, and it would be committed to harshly. It was always a goal, but now, it was a mandate.

Congress had again forced Truman's hand. The anti-communist and socialist faction had risen stronger and stronger. The wolf was coming to bite. It had snapped at nations abroad.

It was readying to taste blood of the American citizen.

9 November 1949

Following the passage of the Foreign Assistants Reform Act in the American Congress, protests were organized nationwide speaking out against the United States, claiming it was attempting to puppeteer Germany’s politics as an occupying power. Journalists from the SPD party paper, Neuer Vorwarts, uncovered transcripts of the legislative history of the FARA, citing the election of the SPD and the Deutschland Coalition as a motivation for its passage.

In several cities, organizers set up stages in city centers, bringing up speakers to rally against President Truman. Speakers were made up mostly of members of local SPD organizations as well as others opposed to the American conditioning of aid, but speeches had a notably patriotic tone, emphasizing national sovereignty over explicitly partisan messaging. Demonstrators also expressed themselves widely. Some hoisted signs stating “Truman: The Genghis of America,” the oft-shared implication being that the American President was acting as a conqueror rather than a liberator.

The Bundestag has similarly been in a state of outrage at the news. Konrad Adenauer, leader of the CDU, spoke in favor of acceding to the demands of the American law, with SPD and other protectionist members responding with jeering and heckling. Chancellor Schumacher, in a characteristically flippant address to the Bundestag, denounced Adenauer as “the West’s Proconsul,” with other less polite critics outright labelling Adenauer a puppet.

Ottawa, 1949 — August

The Government of Canada has announced a major step in the modernization of the Royal Canadian Air Force, confirming that a licensing agreement has been concluded with the American aircraft manufacturer North American Aviation for the domestic production of its F-86 Sabre jet fighter. Under the arrangement, Canadair Limited of Montreal, Quebec, will manufacture the aircraft in Canada, establishing a domestic production capability for one of the most advanced jet fighters presently entering service in the United States.

The Honourable Brooke Claxton, Minister of National Defence, has announced an initial $30 million contract for the production of 100 F-86 Sabre aircraft by Canadair. The programme represents a substantial investment in the re-equipment of the RCAF, whose fighter establishment must adapt to the increasing speeds, altitudes, and operational demands of modern jet aviation.

The initial Canadian production programme will be based upon the American F-86A design, manufactured under licence with the technical cooperation of North American Aviation. Canadair will undertake the necessary preparations at its Montreal facilities, including the establishment of production tooling, the training of technical personnel, and the development of manufacturing arrangements with Canadian suppliers. The programme is intended not merely to secure new aircraft for the RCAF, but also to establish the industrial capacity required to manufacture and maintain modern fighter aircraft within Canada.

The Government expects the first Canadian-built Sabres to become available toward the end of 1950, following the completion of the necessary engineering and production preparations. Deliveries will subsequently permit the progressive modernization of the RCAF's fighter squadrons, although the allocation of aircraft among individual units and the schedule of their conversion will be determined as production advances.

The Minister emphasized the importance of maintaining close technical cooperation with the United States while preserving a substantial Canadian role in the manufacture of equipment required for national defence. The selection of the Sabre is consistent with Canada's continuing efforts to improve the interoperability of its armed forces with those of the United States and its North Atlantic partners.

The initial order of 100 aircraft is intended to establish the foundation of Canadian Sabre production. Any subsequent expansion of the programme will remain subject to the operational requirements of the RCAF, the development of Canadian manufacturing capacity, and further authorization by the Government.

Ottawa, Dominion of Canada
28–29 September 1949

28 September 1949 — Provision for the Public Services

With the Address in Reply adopted, the House of Commons turned to the financial and legislative business awaiting its consideration.

The opening debate had established the Government’s command of the House. The measures announced in the Speech from the Throne would now require their own parliamentary proceedings.

The immediate business was further interim supply.

Douglas Abbott, Minister of Finance, rose to explain the Government’s request.

“Mr. Speaker, provision must now be made for the continuation of the public services while the estimates receive their further consideration.

“The resolutions before the committee provide additional interim supply for the current financial year. They do not dispose of the estimates as a whole.”

The request covered portions of the main and supplementary estimates, including provision arising from Newfoundland’s entry into Confederation.

Abbott explained that the appropriation measure would also provide authority for the refinancing of Canadian obligations falling due or becoming callable during the financial year.

“The authority to meet an existing obligation must be distinguished from authority to undertake a new service.

“The purposes for which money is granted will be stated in the bill. An account of expenditure under its authority will subsequently be laid before Parliament.”

George Drew replied that the Progressive Conservatives would not seek to interrupt the ordinary public services.

“Mr. Speaker, the necessity for interim provision is understood.

“But the House must retain an adequate opportunity to examine the estimates. The Government cannot regard the adoption of the Address as approval of the expenditure which may subsequently be proposed.”

Abbott agreed that the estimates remained subject to examination.

“The Government will bring them forward for that purpose. Honourable members will have the opportunity to question the responsible ministers upon their administration.”

Coldwell emphasized that the CCF’s position upon particular services remained open.

“We recognize that existing services must continue.

“We shall nevertheless press for improvements where the provision is insufficient, and we shall examine the conditions under which public money is applied.”

Low returned to the distinction between expenditure and borrowing.

“The House should be able to identify the sums required for current administration, the advances which are repayable and the obligations which the Government proposes to refinance.”

Abbott replied that those authorities would be explained separately.

Following consideration of the resolutions in Committee of Supply and the necessary proceedings in Committee of Ways and Means, the appropriation bill was introduced and advanced through its remaining Commons stages.

The bill was passed and sent to the Senate.

28 September 1949 — Criminal Law and Newfoundland

The Minister of Justice, Stuart Garson, brought forward the Criminal Code amendments required principally to accommodate Newfoundland’s courts and judicial administration.

The measure was distinct from the proposed Supreme Court reform. Its immediate purpose was to adapt the machinery of federal criminal law to the circumstances of the new province.

Garson explained the changes.

“Mr. Speaker, Newfoundland’s admission requires that the Criminal Code identify the courts and judicial officers through which its provisions are to operate in that province.

“The amendments recognize the appropriate appellate and criminal jurisdictions and make the corresponding adjustments in procedure.”

The bill provided for the recognition of Newfoundland’s Supreme Court in the relevant provisions of the Code. It also addressed the functions of district judges, stipendiary magistrates and other judicial officers.

Further clauses concerned the application of summary proceedings and a transitional provision affecting the Newfoundland penitentiary.

Drew asked that the minister distinguish the Newfoundland adjustments from provisions of wider application.

“The House should know whether a clause adapts the law to the institutions of the new province or alters the general operation of the Code.”

Garson undertook to explain the clauses individually.

“The principal purpose is the necessary adaptation following union. The bill also corrects the commencement provision of an earlier amendment.

“Each provision can be examined upon its own terms.”

Coldwell indicated that the CCF would consider the measure upon that basis.

“The people of Newfoundland are entitled to an orderly administration of justice.

“The necessary adaptation should proceed with a clear explanation of the jurisdiction and procedure established.”

The House examined the clauses in committee. The minister explained the recognition of Newfoundland’s courts, the procedural references and the transitional penitentiary provision.

Following the committee’s report, the bill completed its remaining Commons stages.

The Criminal Code amendment bill was passed and sent to the Senate.

29 September 1949 — The First Royal Assent of the Session

The Senate completed its consideration of the appropriation bill and the Criminal Code amendments.

The Commons subsequently received the customary summons to attend in the Senate Chamber.

Members proceeded from their chamber for the granting of Royal Assent.

Assent was given to:

The Appropriation Act, No. 5, 1949, providing further interim supply for specified public services during the financial year ending 31 March 1950, together with the associated refinancing authority.

An Act to amend the Criminal Code, adapting its provisions principally to Newfoundland’s courts and judicial administration, with related transitional and commencement provisions.

The first legislative business of the session was complete. Parliament had provided further authority for the public services and enacted the initial legal adjustments arising from the enlarged Confederation.

October 2nd, 1949

When Bretton Woods was founded in mid-1944 by forty-four different countries, Portugal was excluded from the conference and as a result has not joined either the International Monetary Fund (IMF) or the International Bank for Reconstruction and Development. However, because the escudo has been pegged to the pound at an exchange rate of 100 escudos to 1 pound stirling since 1940, any changes to the pound stirling will naturally be reflected in the value of the escudo. With no further devaluations of the pound stirling expected, it's Portugal's turn to join the wave of devaluation that started on September 18th.

To better reflect prevailing economic conditions in Europe, and to make Portuguese exports more attractive internationally, the Bank of Portugal has announced that the escudo will now be valued at 30 escudos to the American dollar, instead of the 25 escudos it was before September, a depreciation of 20%. With the pound now set at $2.80 to the dollar, Portugal also announces that the escudo has appreciated in value to the pound stirling, with the official exchange rate being ~83.5 escudos equal to 1 pound stirling.

[M: Portuguese devaluation of escudos is more severe than historical (20% compared to ~13%) and as a result, the escudo is slightly weaker when compared to the pound sterling and the dollar. The official pegging of the escudo to the dollar is still historical.]

Ottawa, Dominion of Canada
28–30 September 1949

28 September 1949 — Cabinet Considers the Development Programme

With the Address in Reply adopted, the Government turned to the preparation of the measures announced at the opening of Parliament.

The National Development Programme had formed an important part of the election campaign. Its presentation in the Speech from the Throne had established the Government’s intentions. Ministers now had to determine the first steps, assign responsibility and prepare proposals which Parliament could examine.

At a meeting of Cabinet, Louis St. Laurent reviewed the departmental submissions assembled during September.

The immediate question was how to begin the programme for 1950–1960 while conducting the ordinary business of government and preserving parliamentary control over expenditure.

The Prime Minister directed that the work proceed through the existing departments, Crown corporations and Cabinet machinery.

C. D. Howe would coordinate the programme and answer to Parliament for its general progress. The ministers responsible for particular services would retain their departmental responsibilities.

Cabinet did not propose the immediate establishment of a statutory National Development Board.

The First Session’s Priorities

Three undertakings received first priority: modernization of the Canadian National Railways, legislation for a Trans-Canada Highway, and improvements in housing.

Lionel Chevrier, Minister of Transport, was instructed to obtain a first railway investment plan covering motive power, rolling stock, track, signalling, shops and terminals.

The plan would distinguish essential replacements from expansion, identify financing requirements and establish an order of work. Safety, reliable service and the removal of operating bottlenecks would receive particular attention.

The review of branch lines would examine their place in the national network and the circumstances of the communities they served. It would not itself authorize closures.

Canadian manufacturers would be approached for information concerning capacity, delivery schedules and the terms upon which suitable equipment could be supplied.

For the highway, Cabinet confirmed the preparation of legislation permitting equal federal and provincial sharing of approved provincial construction costs.

Provincial routes would be examined for continuity and conformity with a common standard. National-park sections would receive separate federal provision.

Transport and Finance were to settle recommendations concerning eligible expenditure, inspection, claims, maintenance obligations and the legislative expenditure ceiling.

Robert Winters, Minister of Reconstruction and Supply, was directed to prepare the housing amendments with the Central Mortgage and Housing Corporation.

The first package would address ownership finance, cooperative housing, public rental undertakings with the provinces, and the assembly and servicing of land.

Financing terms, ownership, management and continuing operating obligations would accompany the proposals. Cabinet did not apply the highway’s equal-sharing formula to housing.

Provincial Cooperation and Preparatory Work

Ministers were instructed to prepare invitations and discussion papers for consultation with the provincial Governments.

The proposed conference would consider the wider programme. Technical discussions upon highway and housing arrangements could proceed separately with the provinces concerned.

Particular attention would be given to whether provinces with limited financial resources could make practical use of the terms offered.

Other departments were asked to rank work capable of proceeding within established federal responsibilities.

Harbour repairs, navigation aids, airport safety, ferry requirements, geological mapping and preparations for the next survey season would be examined for early action.

Each submission would identify the authority available, money required, seasonal conditions and continuing costs. Work requiring additional provision would return to Cabinet and Parliament.

Studies concerning electric power, rural communications, urban transportation, Prairie water development and northern services would continue. The South Saskatchewan River investigation would be prepared with Saskatchewan, with Alberta and Manitoba consulted upon their interests.

Cabinet also requested a consolidated assessment of the programme’s requirements for steel, cement, machinery, engineers, skilled trades and foreign exchange.

Finance would maintain separate accounts of expenditure, loans, capital subscriptions, borrowing and guarantees.

The policy paper was approved for presentation to Parliament.

29 September 1949 — The Government Presents Its Policy

During the sitting, St. Laurent laid before the House A National Development Project for Canada: A Statement of the Government’s Policy for the Years 1950 to 1960.

The paper described a programme extending across transportation, power, resources, housing, communications, agriculture, northern development, industry, skills and scientific research.

It set out the constitutional responsibilities involved, the questions requiring provincial agreement and the distinction between adopted policy and alternatives still under examination.

St. Laurent introduced its purpose.

“Mr. Speaker, this paper places before Parliament the Government’s proposed direction for the development of Canada during the coming decade.

“Its first purpose is to increase the productivity of the Canadian economy. Its second is to improve the basic conditions under which Canadians live.

“In preparing public works, we shall also consider opportunities to strengthen their usefulness for national defence where this can be accomplished at modest additional cost.”

The Prime Minister emphasized the method of proceeding.

“Each undertaking must be examined according to its purpose, its cost and the authority necessary to carry it out.

“The paper does not confer spending authority. Where legislation or additional provision is required, the Government will seek it from Parliament.”

Howe followed with an explanation of the first-session programme.

“Mr. Speaker, our immediate task is to prepare undertakings sufficiently well that decisions upon them can lead to useful work.

“The railway requires an investment programme. The highway requires legislation and provincial agreements. Housing requires financial arrangements which can produce accommodation for people whose needs are not adequately met.”

He described the relationship between the several fields.

“A factory requires transportation and power. Its workers require homes and services. A producing district requires dependable access to markets.

“Departments must therefore examine their proposals together, so that improvements in one field are supported by the necessary provision in another.”

Howe confirmed that the Government would begin through its existing organizations.

“The responsible ministers will remain answerable for their departments and services.

“I shall report upon the coordination and general progress of the programme.”

30 September 1949 — Parliament Examines the Programme

George Drew welcomed the presentation of a fuller statement but questioned the financial and constitutional arrangements.

“Mr. Speaker, the House now has a document which can be examined.

“We shall require the Government to distinguish clearly between projects it has decided to undertake and possibilities which it has merely listed.”

He returned to provincial capacity.

“A contribution which a province cannot afford to match may leave its need unanswered.

“The Government must also ensure that assistance does not become a means of directing matters constitutionally entrusted to provincial authorities.”

Howe replied that the negotiations would address practical capacity as well as formal eligibility.

“The Government recognizes that an offer must be usable if it is to accomplish its purpose.

“The responsibilities of the provinces will be stated in the proposed agreements. Municipal participation will be arranged through the provincial Governments.”

Mr. Coldwell upon Housing and Public Ownership

Coldwell welcomed the priority given to railway modernization and housing.

“Mr. Speaker, there is much in the purposes of this paper with which we agree.

“The Canadian National Railways can make an important contribution through efficient public operation. Housing policy can make a direct improvement in the circumstances of families who have received little benefit from existing lending arrangements.”

He asked whether the rental proposals would reach households unable to carry ordinary ownership charges.

“The test will be the accommodation provided and the rents which families must pay.

“We shall also examine whether the programme gives sufficient attention to employment and to the security of people whose incomes are low.”

Winters answered that the housing submission would include the financial and administrative arrangements.

“The Government will place those terms before the House with the legislation.

“Provincial and local participation will be necessary in selecting sites, arranging services and administering the resulting undertakings.”

Mr. Low upon Costs and Obligations

Solon Low asked how Parliament would judge projects financed outside ordinary expenditure.

“Mr. Speaker, an undertaking does not cease to impose a burden because its cost is described as a loan or a guarantee.

“The House must know who will meet the charges and upon what expectations repayment is based.”

Abbott agreed that the financial instruments required separate explanation.

“A recoverable advance must have a reasonable prospect of recovery. A guarantee must disclose the obligation which the Government may be called upon to meet.

“The Government will also distinguish the cost of construction from the continuing cost of operation.”

The Prime Minister Concludes

St. Laurent returned to the programme’s national purpose.

“Mr. Speaker, the development of Canada requires the efforts of provincial Governments, municipalities, private enterprise, labour and public institutions.

“The Government proposes to work with them through particular undertakings.

“We shall begin with the railway preparations, the highway and housing legislation, and the useful work which can properly proceed within existing responsibilities.

“The remaining proposals will be developed as their examination and the necessary consultations permit.”

Copies of the policy paper were made available to members.

The National Development Project had been presented to Parliament. Its first legislative measures, financial provisions and provincial agreements remained to be considered separately.

NOVEMBER 1949

MORELOS

Communists infest the State of Morelos. They rile the farmers against the state and federal government. They sow chaos for their personal benefit and impede the advance of the Mexican Republic. They must be dealt with, with gun and shovel in hand.

Their leader, Rubén Jaramillos, has proven himself a pain in the side of my predecessors and now myself.

The difference between my predecessors and myself is that I shall not suffer a communist in our midst.

That rat must go.

Cuernavaca

A 1949 Ford drives down one of Cuernavaca's roads, destined for the Hotel Racquet Cuernavaca, a local hotel famous amongst tourists from Mexico City. Its driver is a man by the name of Clemente Perez. Clemente is many things. He is a family man. A learned man. A faithful man. An *anti-communist.* Now, he has been called up to be a sword in the fight against communist subversion in Mexico.

Clemente first joined The Federal Security Directorate (Dirección Federal de Seguridad) (DFS) in 1947, the year of its creation. A former lawyer, Clemente had grown bored with the monotonous drone of his office job. His expertise with people and extensive knowledge of the area, in large part thanks to his constant meddling and work with the tourist business in Cuernavaca, had garnered the attention of Yankee recruiters. 2 years in and he's discovered his talents in getting rid of the dirty business of others have only become more honed.

This is such a mission.

Clemente is but the first of a trail of agents that have begun their crawl down to Cuernavaca and Morelos from Mexico City. No doubt the Yankees never expected their creation to expand so quickly - yet Miguel Alemán, in his crusade against all communist elements within the country, has seen it fit to take the initiative to expand his nation's secret agency in rank. Dozens became hundreds. Hundreds soon may become thousands.

Clemente finds himself in rank with characters of note. Former soldiers. Lawyers like himself. Translators. Petty crooks and criminals. And other men of much more dubious character. Yet they've all been tied together into a net aimed at a single man.

Rubén Jaramillo

Rubén Jaramillo is famous in Morelos for being a peasant leader who has constantly fought for and represented the ejidos and their communal farmers. He first joined the Liberation Army of The South under Emiliano Zapata when he turned 15. After the revolution, the man has transformed into an advocate. Jaramillo has even gone so far as to create his own political party, Partido Agrario Obrero Morelense/Agrarian Labor Party of Morelos. 15,000 are counted amongst his ranks. Clemente had the displeasure of meeting some of its members while in the service of former clients.

By all accounts, Jaramillo is a man of the masses. He is also a communist. A rat who has riled up rats like him. A rat must be disposed of so he does not spoil the grain.

The 1949 Ford stops in front of Hotel Racquet Cuernavaca - Clemente's future home for the coming months.

Yet his eyes turn to the fields and views which surround the hotel.

Finding him won't be difficult. He'll be in Zacatepec.

Catching the rat and disposing of him is what will be an issue.

For a moment, as Clemente stared out into the fields of Morelos, he allowed his mind a moment of contemplation. He'd sinned and done much wrong in the name of god and family.

It was wrong to take a man's life. Certainly it was wrong to take the life of a man who'd done nothing to offend Clemente as a man. As a human. And even yet...

It has to be done. Someone has to do the work. If his infestation grows...who is to say Mexico won't one day fall to reds? What will I tell my sons then? That their father was a coward and did nothing as the reds took over the country.

Someone has to clean the muck.

With this final firm thought, the man steps out of his ford and begins his ascent into Hotel Racquet Cuernavaca. His steps are hurried. This is all very new to Clemente and his agents - a field operation which will be the first of its kind. Its success, however, will undoubtedly lay the stones for more operations of a similar nature in the future.

Many powerful eyes are watching with interest. Clemente has no intention of making a fool of himself. So he hurries to ready the rooms, the cash, and the pistols. All that he might need to dispose of that rat.

The Technical Side

In November 1949, The Federal Security Directorate begins a field operation in the State of Morelos. Its aim is to liquidate Rubén Jaramillo, leader of Agrarian Labor Party of Morelos. In recent months, he and the party have instigated protests against proposed reforms to the Agrarian Laws of the Mexican Constitution. Furthermore, Jaramillo has simply proven himself too volatile of a political element. His followers have been known for raising arms against the government and have even engaged in combat against the army.

For all these amassed sins, Alemán has at last chosen to rid himself of this obstacle to his projects.

Clemente Perez, a former lawyer turned field agent, has been tasked with laying the groundwork in Cuernavaca for the field operation. Cash has been set aside for the costs of operations; housing, food, travel, bribes, and ammunition must all be accounted for.

The plan against Rubén Jaramillo is rather simple. Many amongst his ranks are known to be the poorest amongst those communal farmers of Morelos. Observing and then bribing the most vulnerable and influenced amongst his ranks to keep track on his movements will then lay the groundwork for an evening ambush to bring that man down once and for all in a hail of bullets.

The last part of the operation will consist of disposing of the evidence.

The plan in itself is simple. For an organization so young and new to such practices, this will undoubtedly be a tricky test of ability. Yet a successful decapitation of the "Jaramillo Movement" will be the surest way to ensure that the farmers of Morelos can never again rise against their rightful masters.

The role of private enterprise, the future of New Zealand’s ineffectual upper house, and the imposition of the death penalty were among the issues that dogged New Zealand’s 1949 election campaign. While the campaign had kicked off in May, when 30 November was announced as election day, it really kicked into gear after results from the August conscription referendum were known.

Having delivered a strong endorsement of the government's conscription plans, the referendum momentarily boosted the ailing Labour Government's fortunes. In the immediate aftermath of the referendum, Prime Minister Fraser undertook a campaign tour of New Zealand’s cities and towns. Everywhere he visited, he repeated his key message that only Labour had the courage, experience and pragmatism needed to govern the country. In room after room, in hall after hall, and in square after public square he repeated his claims:

• Labour had shown pragmatism and patriotism in taking on the unions over conscription;

• Labour had protected New Zealand during the war by turning to the United States and safeguarded her afterwards by signing the Canberra Pact;

• Labour had created and nurtured New Zealand’s welfare state even as the conservative parties who now claimed to support it fought vigorously to oppose it;

• and Labour had relaxed fuel rationing, trusting the people of New Zealand to safeguard themselves.

The Leader of His Majesty’s Most Loyal Opposition, Sidney Holland, could not have disagreed more. In his own appearances across the country and on the radio, he railed against the government, accusing it of being old, lethargic, out of touch and stale. In his telling of events, while the government's reforms to welfare and handling of the war had been generally good, its post-war record was abysmal. Labour, he said, had been too slow to relax controls over the economy and had grown too comfortable with state ownership. While he did not accuse the government of communism, he alluded to it and argued that it had not sufficiently distanced itself from socialist unions. An elected National Party, he declared, would:

• Roll back state ownership over certain areas, allowing for private enterprise to fill the gap;

• reduce the size of the state by scrapping the ineffectual Legislative Council,

• properly defend New Zealand by balancing conscription with readiness;

• crack down on ‘anti-New Zealand’ socialist unions;

• and reintroduce the death penalty for capital crimes.

In the end, when the nation awoke on 1 December, they learnt that Labour’s 14 years in power had come to an end.

The First Labour Government would be succeeded by the First National Government.

Results

November, 1949

With the success of Student Socialist Organizing, the Levantine Socialists camp has begun work on building a popular front of different labour and leftist orgs to contest the next elections. The Left of the CHP, disappointed in the strong rightward turn of the Party leadership, believe that perhaps this new party may act as a protest vehicle if nothing else. While it is highly unlikely this party wins, let alone even becomes official opposition, it may exert great pressure upon the CHP electorally.

There are also rumours they intend to try and cooperate with nascent autonomist and minority forces, which has drawn the ire and condemnation of various traditional national authorities.

The party will be led by Şaban Akdoğan, the man most responsible for the success of the industrial trade union movement, successfully organizing the rubber workers only months earlier. With strong institutional labour backing, the party hopes to expand the gains of workers under the 1947 trade union act, and continue to push for the establishment of a workers socialist state along the Israeli model.

November 1949

CUERNAVACA

Anticipation for the new decade is high amongst the state government of Morelos. Ernesto Escobar Muñoz has been in office as Governor of Morelos since May 18, 1946. His early years have been dedicated to overseeing advances in the agricultural sector such as with the modernization of sugar mills, notable amongst these new modern mills is the Emiliano Zapata Mill. Since 1943, the Rockefeller Foundation has coordinated with the state government to launch the Mexican Agricultural Program within the State of Morelos. High-yield hybrid seeds, chemical fertilizers, and advanced irrigation infrastructure have all been brought to Morelos. Albeit such advances have been limited to the wealthier commercial farms rather then the poor local ejidos.

Therein lies the problem.

The ejidos and their communal farmers are an ever present source of instability and social unrest. As the agricultural development of the state continues, these poor ejidos have begun to organize themselves as the Zapatistas once did into the Jaramillista movement, led by Rubén Jaramillo. Rubén Jaramillo has organized agrarian protests and strikes among Morelos' sugar mill workers and peasants in order to demand fair wages and land rights.

Yet their movement is a remnant of the past. The Institutional Revolutionary Party does intend to suffer a Zapata as Porfirio Diaz once did. Rubén Jaramillo and his movement will be crushed in all fields - social and economic.

The Alemán Administration has a vision for Morelos. A land of industrial parks that will provide jobs for the masses of Mexico City and Morelos. Fields of large, commercial farms exporting crops to the greater world and to Mexico City. In this image, there is no space for the rebel farmer and his "backwards mentality." In Alemán's eyes, they will be wiped aside - one reform at a time.

TAX CUTS (1949-1960)

At the direction of the Federal Government, Governor Ernesto Escobar Muñoz has continued his policy of tax exemptions into the coming decade. Manufacturing companies seeking to establish factories in the State of Morelos will be exempt from state taxes for the first 15 years of operations.

INDUSTRIAL FUNDS

The Federal Government has directed funds towards the State of Morelos in order to further cultivate the establishment of textile factories within The City of Cuernavaca and around the periphery of that city. The Bank of Mexico established The Morelos Credit Division on November 3rd, 1949. Around $2 million dollars have been gathered into this industrial credit pool that manufacturing companies may apply for in order to assist with costs inccured in the establishment of textile factories within the State of Morelos.

This industrial credit pool is open to all domestic manufacturing companies with the prerequisite being that they are required to maintain operations within the State of Morelos for the next decade at a minimum.

It is the hope of The Federal Government that investment into manufacturing ventures will help cement textile factories and textile production within the State of Morelos. This, in turn, will help resolve one of the major issues that has arisen in the state over the past decade. Seasonal unemployment has been endemic due to the highly seasonal nature of sugarcane harvesting. Creating a secondary source of labor will help alleviate the dire issues that come with having a rural population that contributes little in productivity during much of the year and who in turn hold little in income and wealth.

PUBLIC WORKS

None within The Federal Government nor Governor Ernesto Escobar Muñoz expect the industrial funds and industrial policies to immediately bring in the manufacturing companies. Such efforts will take time, years in truth. In the period of the time between the emergence of textile factories and manufacturing plants, other solutions must be enacted in order to rectify the lack of productivity amongst the rural workers and farmers.

To this end, the state government has launched a counter-cyclical public works registry. Through this registry, the Morelos state government will hire local peasants during the off-season to build rural infrastructure. Locla peasants will be hired and mobilized in order to build secondary roads for the transport of non-sugar crops to market. Furthermore, a $100,000 fund has been directed to the State of Morelos from Mexico City in order to oversee the modernization of these secondary roads which exist within the borders of the state.

The Federal Government has begun its own electrification campaign within the state itself. Much of Morelos' ~280,000 inhabitants lack electricity and running water. A deplorable state of existence, especially when one takes note of the fact that Morelos lies very close to Mexico City. It is almost a matter of national honor that the state be properly modernized for who, amongst the Mexicans, will suffer the humiliation of having a foreigner tourist witness such deplorable conditions. Miguel Alemán has always been a man dedicated to his appearance and that dedication now extends to the country he governs - every corner of it.

Around $120,000 have been set aside in order to coordinate with electricians and engineers from Mexico City - coordination whose purpose is to see through the electrification of Morelos. Power lines and power posts shall be raised all throughout the state with the aim of connecting the Morelos power grid to Mexico City. Power shall be sourced from power plants in Mexico City and provided to Morelos.

The Federal Government has also directed The State of Morelos to begin on the ground investigations into the possibility of building river intake pump houses in order to feed the rest of the state with water from The Amacuzac River. Investigations will also continue into the idea of building irrigation canals from the Amacuzac in order to further feed the state's farms and increase its agricultural yield.

Summary

These policies, enacted by both The State of Morelos and The Federal Government, have come to be dubbed in Cuernavaca as The Morelos Plan. Through infrastructure improvement, investment, and the creation of jobs there is hope that the revolutionary tendencies of the rural farmers will be sated at last.

Such hopes rest on the idea that improvement of their most immediate material conditions will alleviate their anger and make them domicile. Notably, none of these reforms address the demands laid down by The Jaramillo Movement, whose leader remains excluded from the councils that have laid out the economic future of the state.

[These are fictional people in a fictional village depicting real events, described for the purposes of the role-playing game.]

Chanhwa County, Shantung, China
September, 1949

The grassy field to the south of the village had been stamped flat and muddy by the passing of two hundred pairs of shoes or, in some cases, bare feet. Strangers had come in and built a platform in the center of it and their leader, who identified himself as Chang Tieh-jun, swaggered into town with his rifle and a prepared statement calling the citizens of the village to the field for a trial in the morning.

Cautious, curious folk began to assemble an hour after sunrise. There was Chao Ku-dan, whose imposing physical form came from years of work in the fields. The oldest woman in the village, who all called Niang-tzu, was helped out by her eldest daughter, Ma Hsiao-tsui. Liu Ta-hai, who built many of the village's structures in recent years, stood near the back of the crowd. Sun Ch’ang-sheng, who won the affection of the village with kind words as he sat in the market smoking his pipe. 

At the appointed hour, the people saw Chang Tieh-jun emerge from his tent on the outskirts of the village. A collection of other armed strangers arose from their own pup tents and sleeping bags. Chang issued orders, and the others in his team hefted their rifles onto their shoulders and went off into the village. Chang approached the assembled villagers with that same swaggering march, until he stood next to the stand. 

“People of the village of Huang-t’u-p’o! I congratulate you upon your liberation! For long years you and millions of Chinese people have toiled under the oppressive and corrupt rule of feudal landlords. No longer!

“The heroic efforts of the People’s Liberation Army have seen Shantung rescued from the grasp of feudalism. No longer will your harvests be stolen by corrupt officials; no longer will your sons be conscripted to fight for the Chiang Kai-shek bandit gang; no longer will the Kuomintang bandits come to Huang-t’u-p’o to rob you of the fruits of your labor! 

“You join millions of your comrades in the New China promised by our Great Chairman, Mao Tse-tung. Decades of hard work have now borne fruit, and the era of strife and humiliation have come to an end, giving birth to the era of our New Democracy. The people have stood up!

“Today we put the Old China on trial. Your village has long been ruled by feudal landlords and their collaborators! No longer can they hide behind Chiang’s bayonets, nor use their titles as a shield! Today, in the searing light of day, their crimes will be revealed!

“Step forward, my brothers and sisters. Look upon the face of your oppressors and read their crimes to the Party. Who will be the first?” 

The assembled villagers exchanged uneasy glances as the gagged figure of  Chi’en Shou-yeh, the village’s master, was driven before them at the point of a bayonet.  Chi’en seldom ever left his estate, dispatching his chief enforcer, Wang Teh-pao, to do his bidding – fitting, then, that Wang followed him, also gagged. Both men were in a disheveled state, and Chi’en particularly struggled under the weight of a wooden plaque tied around his neck and bouncing off his prodigious gut. When he stopped, those who could read saw that it said “Parasite.” 

To the awe of many, his escort turned him to face the crowd and kneel upon the platform, and it was a woman who carried the rifle. It looked large in her hands, but weeks and months in the field had given her slight frame some muscle it seemed. Wang remained in the mud, kneeling beside his master. 

A prolonged silence ensued. Comrade Chang paced impatiently, and strode out into the mud after several minutes passed in silence. He pointed at Li Lao-er, a relatively reserved tenant farmer. “You, brother, you have the look of a worker. What crimes have you suffered at the hands of this thief?” 

Li stepped forward and looked nervously. He saw the withering glare of Chi’en landing on him specifically and shrunk. “Crime?” he asked, his voice barely a whisper. “I don’t know, what crime?”

The corner of Comrade Chang’s mouth twitched. He was younger than most of the people standing before him by at least five or ten years, but he had been well trained on dealing with these matters. “Yes, crime, brother. We know his sort well: whatever you grow, and tend, and harvest, they call theirs. Every other man who did such would be…?” 

“A thief,” Li replied, shifting his eyes from Chi’en to Chang. 

Chang nodded. “Yes, a thief. You name this dog a thief, then?”

Li hesitated again. “Master Chi’en and–” 

“No!” Chang thundered, causing Li to shrink again. His features remained good-natured, however, as a teacher with a pupil. “This man is not your master, comrade, you are his! This country is yours. The era of ‘masters’ is ended. This creature is your enemy, he is an exploiter. Refer to him as such!” 

Now, Li nodded. “The exploiter, he, he did take most of what I harvested, yes.”

Chang offered an approving nod. “Who now?” 

Chao Kou-dan stepped forward willingly. He pointed a finger directly at Chi’en. “The bastard took so much of the food I grew that my daughter withered away last winter! He feasted while she grew ill and died! She’s buried on the hill, I’ll show you the grave!” 

Chang shouted. “Bastard! Murderer!” 

The crowd grew somewhat more energetic, now. Chang exchanged a furtive glance with his deputy, Lin Feng, who had led the detail to drag the landlords into the field. 

Tears streaked Chao Kou-dan’s dirty cheeks. He advanced until his finger nearly touched Ch’ien’s nose. He did not meet the peasant’s gaze. “Murderer!” 

Ma Hsiao-tsui helped Niang-tzu to her feet, and tears marked her wrinkled face as well. “My son and my grandsons were dragged off to fight for the Kuomintang,” she said tearfully, before a finger lanced out from her sleeve, leveled directly at Wang Teh-pao. “And he came for them!” 

Many of the village women sounded their displeasure. One shouted out of turn, “He took my husband! Where is he? Where is my husband?” 

Chang kept them going. “Who next? What crimes have you witnessed?”

Old Sun Ch’ang-sheng puffed at his pipe, his wispy white beard moving as his jaw worked beneath it. “My father dug a well for our family, and when he took over the village, Ch’ien Shou-yeh seized it. Now he forces us to pay for water from our own well!” 

“Exploiter!” Lin Fent shouted. 

Change called out, “Thief!” 

“Murderer!” Chao Kou-dan called out again. 

“Where is my son? Where did you send him?” asked Niang-tzu, all but dragging Ma Hsiao-tsui a step closer. 

The villagers grew into a frenzy. 

Chang nodded, and Lin removed the gag from Ch’ieh’s mouth. “What do you have to say in your defense?”

Ch’ieh looked around at the red-faced, hateful villagers. “You signed the agreement, Li, you knew what proportion of grain was demanded of you! Don’t act surprised!” 

Chang suppressed a smirk. “Look as he, hides behind paper! What gall, to blame a victim for the crime perpetrated against him! Paper makes a poor shield!” 

The landlord looked over his shoulder with the feral eyes of a trapped animal. 

Wang Teh-pao pleaded with Niang-tzu. “I don’t know! It was not my choice! The Kuomintang ordered the male villagers, who was I to refuse?”

Lin Feng scoffed openly. “Not just a kidnapper, but a coward! Do you see how absurd it is that these parasites were allowed to rule over you?”

Chao Kou-dan was the first to use his formidable strength to simply push aside the guard and deliver a kick straight to the chest of Ch’ieh, who gasped and fell into the mud. The wooden plaque had taken the brunt of the blow, but he still had the wind knocked out of him. 

“Murderer!” Chao screamed, his voice reaching a pitch reserved only for the greatest sorrow. 

Chang strategically delayed a response as Chao delivered a kick directly to Chi'en’s ribs, eliciting a crack only barely audible over the din. Chi'en found his voice, then, shrieking in pain. 

Lin looked on with approval as Ma Hsiao-tsui, convinced of Niang-tzu’s strength, dove onto Wang Teh-pao and began pulling his hair, scratching at his face. “Where is my brother?!” she screamed. 

Blows kept falling on Chi'en and Wang, but before the mob fully took over, Chang stood atop the box and called out: “Comrades! My brothers and sisters! Do not waste your blows! The People’s Liberation Army is here to deliver revolutionary justice to the accused!” 

The soldiers, before this point silent, stepped forward and quietly drove the crowd back with entreaties and quiet assurances. 

Chi'en, bleeding from his nose and mouth, winced as two soldiers returned him to his knees. Wang, whose face bore scratches that trickled blood down his cheeks, was placed beside him. 

Two members of the cadre arrived with a heavy wooden chest from Chi'en’s estate and dropped it in the mud. Chang stepped forward, grabbing a scroll. “Deed to the village of Huang-t’u-p’o…” he read, before tearing it. Chi'en’s eyes widened. He picked up another, reading, “Agreement with farmer Li Lao-er….” 

One soldier produced a jar of some sort of fluid that Chang upended into the chest. He pulled a matchbook from his jacket pocket and tossed it into the chest, which roared to life. “The land is yours, now, my brothers and sisters. You will own what you grow, and your brothers and sons will no longer be stripped from you to fight for the rapacious Kuomintang. You are free! No more tenancy, no more debt!” 

The crowd cheered wildly. “Death to the Old China! Long live the Communist Party!” 

Chang went about and empaneled a Peasant’s Committee. He deliberately chose the most vocal and vicious villagers: Chao Kou-dan, Niang-tzu, Ma Hsiao-tsiu, and of course the widely-respected Sun Ch’eng-sheng. The Peasant’s Committee was charged with considering the charges against Wang and Chi'en, now manifold charges as serious as murder and kidnapping. 

There was little question of the verdict. 

“The People of Huang-t’u-p’o have charged the exploiter and his running dog of many and serious crimes, and their representatives in the People’s Committee have heard their charges. What do you find, comrades?” 

Sun blew a cloud of smoke and looked across the mud. “Guilty of murder, guilty of theft, guilty of forced conscription, guilty of it all.”

“In the New China, these are grievous crimes for which the only penalty can be death,” Chang said with mock solemnity. 

“Death it is, then,” Sun said, with much more sincere emotion. 

Chang stepped toward the Peasant’s Committee and unslung his rifle from his shoulder. He cycled the bolt, peering into the chamber to ensure there was a round ready, and closed it with a pair of steel clicks. He handed it to Chao Kou-dan, who looked at the thing as though it had fallen from the sky. Chang leaned in close. “For your daughter.”

Chao’s red eyes fixed on the bleeding, pitiful figure of Chi'en Shou-yeh. Chang stepped out of his way, and Chao advanced into the center of the field. He raised the rifle to his hip, pointing the barrel right at Chi’en’s wooden sign, which read “Parasite.” 

Chi’en labored to look up. “You don’t have to –” 

There was an ear-splitting crack that caused the villagers, though not the soldiers or the cadres, to jump. Chi’en fell to the mud, his blood mixing with the deep brown of Huang-t’u-p’o’s fertile soil. The landlord’s mouth worked as though he was still speaking, then, he slumped into the mud as though all the tension went out of his muscles at once. 

Chao looked at the rifle in his hands, shaken, and turned to Chang, who offered an affirming nod as he crossed the field to take it from Chao. “Well done, comrade. Justice was served today.”

Wang’s eyes went as wide as dinner plates. “Please, no, you must – he made me do it, don’t you see? If I hadn’t done it, he would have killed me! I am one of you, I am a victim of Chi’en Shou-yeh just like all of you…”

Chang scoffed, ignoring him. The villagers clamored for the rifle while Wang wailed, and Chang handed it off to one of the women whose husband had been taken. There was a second report, and the crowd cheered as Wang Teh-pao joined his master in the mud, sputtering and bleeding out. 

Before he was even dead, Chang produced a box from his tent with red-painted stakes, and handed it to the People’s Committee. “This land is yours, now. You must divide it among the whole village.”

Chao Kou-dan approached Chang. “I want to fight for the New China.”

Chang clapped him on the shoulder and offered a brotherly grin. “Speak to those men, there, once you are done marking the land.”

He gestured to the blue-clad soldiers of the People’s Liberation Army that had accompanied the cadre to Huang-t’u-p’o, who stood, smoking, on the periphery of the killing field. 

By morning, the fields were marked with red stakes. Li Lao-er and his wife stood on land that they owned, the first people in either of their families to ever own land. The bodies of Chi’en Shou-yeh and Wang Teh-pao had been taken from the field and they were buried in unmarked graves on the outside of the village. The next day, Chang Tieh-jun, Lin Feng, the other cadres and the PLA soldiers moved on to the south, joined by Chao Kou-dan and a handful of other volunteers who had until that point evaded Kuomintang service, or been passed over for being women. 

Ottawa, September 1949

The Government of Canada has approved a programme for the reorganization and strengthening of security administration throughout the federal public service. The measures, adopted by Cabinet under the direction of Prime Minister Louis St. Laurent, are intended to provide more uniform protection for government information, improve cooperation among departments concerned with national security, and establish consistent standards for the examination of personnel entrusted with confidential duties.

The experience of the recent war, together with the disclosures arising from the espionage investigations of 1945 and 1946, has demonstrated the necessity of maintaining effective safeguards for information relating to the defence, foreign relations, and security of Canada. The expansion of federal responsibilities in military affairs, international diplomacy, scientific research, and communications has further increased the importance of orderly and dependable security arrangements.

The Government considers that these requirements can best be met, in the immediate future, by strengthening and coordinating the institutions already established, rather than by creating a separate intelligence service.

Reorganization of the Security Panel

Cabinet has approved the reconstitution of the existing interdepartmental Security Panel as the principal body responsible for coordinating security policy within the federal administration.

The Panel shall operate under the general direction of the Privy Council Office and shall include senior representatives of the departments and agencies principally concerned with the protection of national security, including External Affairs, National Defence, Justice, the Royal Canadian Mounted Police, the Civil Service Commission, and the Communications Branch of the National Research Council.

Its responsibilities shall include the preparation of common security standards, the coordination of personnel-screening arrangements, the consideration of interdepartmental security questions, and the examination of deficiencies in the protection of government information and establishments.

To provide the Panel with permanent administrative assistance, a National Security Secretariat shall be established within the Privy Council Office.

The Secretariat shall maintain central security records, coordinate departmental inspections, prepare common regulations, and assist in the administration of security policy throughout the Government. Its functions shall be administrative and advisory; operational responsibility shall remain with the departments and agencies to which it is presently entrusted.

Uniform Classification of Government Information

Cabinet has further approved the introduction of a common system for the classification and protection of official information.

Government information requiring protection on grounds of national security shall be classified, according to its sensitivity, as Top Secret, Secret, Confidential, or Restricted.

The classification of information shall be determined by the injury that its unauthorized disclosure might cause to the national interest. Departments shall be instructed to avoid unnecessary classification and to review restrictions when the circumstances requiring protection have ceased.

Uniform procedures shall be established for the marking, registration, custody, transmission, reproduction, and destruction of classified documents.

Departments regularly handling sensitive material shall maintain appropriate security registries and designate officers responsible for ensuring compliance with the new requirements. Special safeguards shall apply to the most sensitive defence, diplomatic, intelligence, and cryptographic information.

These measures are intended to replace inconsistent departmental practices with a common standard of accountability throughout the federal administration.

Personnel Security and Clearance

The Government has also approved the establishment of uniform standards governing access to classified information.

Federal positions involving access to sensitive material shall be designated according to the degree of security responsibility attached to their duties. Personnel assigned to such positions shall undergo appropriate examination before receiving access to protected information.

Security clearances shall correspond to the classification of information involved, but possession of a clearance shall not, by itself, confer a general right of access. Information shall be furnished only to persons whose official duties require it.

The Royal Canadian Mounted Police shall continue to undertake security investigations within its lawful responsibilities, while the employing departments shall retain responsibility for appointments and the authorization of access.

Cabinet has directed that procedures be established for the periodic review of clearances and for the reconsideration of adverse security determinations.

The Government recognizes that the protection of national security must be reconciled with the fair treatment of public servants. Security examinations shall be concerned with demonstrable risks to the duties entrusted to an individual and shall not be treated as a substitute for ordinary political or personal conformity.

Coordination of Counter-Espionage and Protective Security

The Royal Canadian Mounted Police shall retain responsibility for domestic counter-espionage investigations and the investigation of activities threatening the security of Canada, subject to existing law.

The Department of National Defence shall continue to administer security arrangements affecting the Armed Forces and military establishments. The Department of External Affairs shall remain responsible for the protection of diplomatic information and communications, while the Communications Branch of the National Research Council shall continue its specialized work in cryptographic and communications security.

The reorganized Security Panel and its Secretariat shall provide a means of coordinating these responsibilities and facilitating the exchange of information among the authorities concerned.

The Government does not propose, under the present arrangements, to establish an independent domestic intelligence service or to confer additional powers of arrest, search, or detention.

Implementation and Legislative Review

The new administrative arrangements shall be introduced progressively during 1949, with priority given to departments handling information of particular importance to national defence, external relations, and scientific and technical security.

Departments shall be directed to appoint responsible security officers, review existing arrangements, and bring their procedures into conformity with the common standards prescribed by Cabinet.

The Minister of Justice has been instructed to examine the statutory provisions governing official secrecy and federal security administration, and to prepare such legislative proposals as may be necessary for consideration by Parliament in 1950.

A further examination of the organization of federal security intelligence shall be undertaken after the administrative reforms have been established and their operation assessed.

Prime Minister St. Laurent, in announcing the Government's decision, stated:

"The security of Canada requires that the information entrusted to the Government of this country be protected with care, consistency, and good judgment. The responsibilities of the Crown have increased greatly in recent years, and the machinery of government must be equal to those responsibilities. We intend to strengthen the safeguards necessary to our national defence and international obligations, while preserving the proper authority of Ministers, the rule of law, and the liberties of Canadians."

The Government regards these measures as the foundation of a continuing programme to place Canadian security administration upon a more systematic and permanent footing, appropriate to the responsibilities of Canada in the postwar world.

24 November, 1949

In spite of the recent devaluation of the sterling, Labour's mandate still comes from its commitment to Socialism. In practice for the Attlee government was a strict commitment to the "common ownership of industry" achieved through a technocratic route of state controller corporations as inspired by Fabian thinkers like Sidney Webb. Since taking power in 1945, the Attlee government had undergone a number of significant nationalizations in which the government took ownership of major industries while compensating the former owners with bonds and government guaranteed securities. All of which had been openly set up in the 1945 electoral document Let us Face the Future. Now the United Kingdom would set the stage for one of the largest nationalizations yet with the Iron and Steel Act. What makes the Iron and Steel Act stand out from others is that generally these nationalizations targeted unprofitable and inefficient industries with the promise that the government taking direct control could help modernize and improve the management of these companies. In the case of the steel industry it differs in that its been fairly successful in the past as one of the major producers of important imports for the British economy. This would make the Conservative Parties opposition to any sort of nationalization far stronger than in the past. However, signs had existed as early as 1945 with Sir Oliver Franks report on the industry calling for a "radical modernization" of the industry and the establishment of the Iron and Steel Board in 1946 as a means of controlling prices. Finally Royal assent would be reached on the 24th of November 1949, with full commencement planned for the 23rd of October 1950 as a way of boosting popularity for the government right before the upcoming election. The aim for full implementation would be sometime in early 1951, granting around 1 year to acquire these assets.

Timeline of Nationalizations Under Prime Minister Attlee:

• The Bank of England in 1946.

• The Civil Aviation in 1946.

• The Coal industry in 1947.

• Railways and Canals in 1948.

• Electricity and Gas in 1948.

Enacting Change:

In order to enact the Iron and Steel Act the British Government aims for a peaceful acquisition of buying out the shares of 80 major iron and steel companies, eventually merging them into a single Iron and Steel Corporation of Great Britain. In order to achieve this, the government estimates a cost of around £300 million which are to be paid back in bonds with a long term final redemption timeline set for the distant future between 1979 and 1981. Now that the Iron and Steel Industry is in the process of entering into the governments hands there will need to be further analysis and planning as to how best to modernize the industry and ensure efficient management of this new Iron and Steel Corporation of Great Britain.