SWEDISH POLICIES BECAME STRONGLY LEFT-ORIENTED AFTER 1969 WHEN THE PALME COALITION GOVERNMENT GAINED POWER AND REFLECTED ITS COMMUNIST COMPONENT BY SANCTIONING ANTI-AMERICAN DEMONSTRATIONS, AIDING NORTH VIETNAM, HARBORING AMERICAN DESERTERS, AND CONTRIBUTING FINANCIAL AID TO VARIOUS LEFTIST TERRORIST MOVEMENTS ABROAD. THE LEFT PARTY COMMUNIST (VPK) INFLUENCE ON PALME'S GOVERNMENT WAS ORGINALLY STRONG, BUT SINCE 1973 THE SOCIAL DEMOCRATS (SDP) HAVE BEEN COMPROMISING TO THE RIGHT. THE RIFT BETWEEN MOSCOW-LINE AND MAOIST COMMUNISTS GOES BACK TO 1964, BUT IT WAS FORMALIZED IN 1967 WITH THE COMPLETED EVOLUTION OF THE TRADITIONAL COMMUNIST PARTY INTO A LEFT-WING SOCIALIST PARTY, THE VPK. AT THIS POINT, THE MAOISTS BROKE AWAY TO FOUND KOMMUNISTISKA FORBUNDET MARXIST LENINISTERNA, (KFML), INTENDED AS A GENUINELY REVOLUTIONARY COMMUNIST MOVEMENT. SUBSEQUENTLY RENAMED SPK, THE PARTY HAS BEEN UNABLE TO SPREAD ITS INFLUENCE OUTSIDE SCHOOLS AND UNIVERSITIES. A SPLINTER GROUP DEVELOPED OVER THE ISSUE OF WILDCAT STRIKES AND THE PARTY'S BASIC ISOLATION FROM THE WORKING CLASS. MOST OF THE GROUP'S OPERATIONS ARE CLANDESTINE AND ILLEGAL, GEARED TO URBAN GUERRILLA TACTICS AND VIOLENT ACTION. MEMBERSHIP MEANS CONVERSION TO PROFESSIONAL REVOLUTIONARY CADRES UNDER STRINGENT DISCIPLINE FOR PROPAGATING THE CLASS STRUGGLE THROUGH ARMED REVOLUTION IN SWEDEN. INFILTRATING INDUSTRY AND THE DEFENSE FORCES IS A MAJOR OBJECTIVE, AND THE ORGANIZATION SYSTEMATICALLY MOVES BETWEEN INDUSTRIES AND TOWNS PERPETRATING WILDCAT STRIKES. DURING RECENT STRIKES AT SAAB AND A SHIPBUILDING YARD, FINNISH WORKERS WERE EXPLOITED BY THE MAOISTS BECAUSE THE FINNISH ARE THE BIGGEST GROUP OF FOREIGN WORKERS IN THE COUNTRY. APPRENDIXES INCLUDE AN INTERVIEW WITH A PARTY DEFECTOR AND A DESCRIPTION OF PROPAGANDA PUBLICATIONS. (MRK)