PIP: The recruitment of "guest workers" between 1956 and 1973 by West German employers has given rise to new ethnic minorities. The Federal Republic of Germany (GFR) claims that it is not a country of immigration--a controversy that reflects the basic dilemma over policies towards foreign residents, who now comprise about 7% of the total population. The shift from temporary labor migration to long-term settlement has been accompanied by structural changes in the foreign resident population. The logic of the migratory process is inescapable: virtually all migrations, whether organized or spontaneous, start with movements of young adult workers. When recruitment stated in the late 1950s state migration policies were concerned only with short-term fulfillment of capital's labor requirements. The state established a system of institutionalized discrimination, through which temporary guest workers could be recruited, controlled, and sent away, as the interests of capital dictated. This policy was impracticable because many firms found that rotation led to problems of labor fluctuation and high training costs. The trend toward restrictive policies on migration continued in the early 1980s; rising unemployment and urban problems led to widespread hostility towards foreigners. 3 key issues need resolving quickly: 1) the granting of security of residence status, so that migrant families have a clear basis for planning their own future, 2) the extending of political rights to foreign residents, and 3) the issue of citizenship. Like other West European countries, the GFR has become a multiethnic society through the postwar labor migrations. The early reform of legal structures to give migrants more rights is a precondition for social peace, and for achieving the benefits which multiculturalism can offer to all members of society.