SPETSNAZ

WHAT THE PENTAGON WON'T TELL YOU... Two EIR Special Reports will.

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SPETSNAZ In the Pentagon's "authoritative" report on the Soviet military threat, Soviet MilitaryPower 1988, the word spets­ naz never even appears. But spetsnaz are Russian "green berets." Infiltrated into Western Europe, spetsnaz have new weapons that can wipe out NATO'S mobility, fire­ power, and depth of defense, before Marshal Nikolai Ogarkov launches his general assault.

ELECTROMAGNETIC PULSE WEAPONS At least the Pentagon report mentions them-but only their "defensive" applications. In fact, they can be trans­ ported by spetsnaz, finely tuned to kill, paralyze, or di­ sorient masses of people, or to destroy electronics and communications. With EMP, as strategic weaponry or in the hands of spetsnaz, the Russians won't need to fire a single nuclear missile to take Europe. Global Showdown Escalates, 525 pages, $250 Electromagnetic-Effect Weapons, 100 pages, $150 Order from: EIR, P.O. Box 17390,

" Washington, D.C. 20041-0390. In Europe: EIR, Nachrichtenagentur SPECIAL REPORT GmbH, Dotzheimer Str. 166, 0-6200 Wiesbaden, FRG, Phone (06121) 884-0. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman From the Editor Managing Editors: Yin Berg and Susan Welsh Editoral Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Uwe Parpart­ Henke, Gerald Rose, Alan Salisbury, Edward Spannaus, Nancy Spannaus, Webster Tarpley, William Wertz, Carol White, Christopher White Science and Technology: Carol White Special Services: Richard Freeman Rarely has EIR been able to offer readers so broad an array of our Book Editor: Janine Benton Advertising Director: Marsha Freeman unique, independent news coverage as in the present edition. Of Circulation Manager: Joseph Jennings course you don't expect the national news media to report on Lyndon INTELLIGENCE DIRECTORS: LaRouche's trip to Thailand, Japan, and Taiwan, and on the warm Africa: Mary Lalevee reception accorded by those nations' political and scientific elites to Agriculture: Marcia Merry Asia: Linda de Hoyos the independent U.S. presidential candidate and to his wife, West Counterintelligence: Jeffrey Steinberg, Paul Goldstein German political leader Helga Zepp-LaRouche. Tum to pages 28- Economics: Christopher White 37 for a first report from this trip, including reportage by Sophie European Economics: William Engdahl, Laurent Murawiec Tanapura in Bangkok, and by EIR's contributing editor Webster Thero-America: Robyn Quijano, Dennis Small Tarpley, who accompanied the LaRouches in Taiwan. Law: Edward Spannaus Medicine: John Grauerholz, M.D. From Mexico City, EIR's D.E. Pettingell writes a minute-to­ Middle East: Thierry Lalevee minute eyewitness report of the brawl that broke out on the occasion Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George of President De la Madrid's annual Informe, and which was elabo­ Special Projects: Mark Burdman rately camouflaged by even the Mexican news media (see pages 11- United States: Kathleen Klenetsky 14). This gripping story and the accompanying interview with Sen. INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura PorfirioMunoz Ledo tell why the illegal imposition of Carlos Salinas Bogota: Javier Almario de Gortari as President of Mexico, announced on Sept. 10, is a Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen tragedy in which Washington is wholly complicit-and from which Houston: Harley Schlanger only Moscow will benefit. Lima: Sara Madueiio Mexico City: Hugo LOpez Ochoa, Josefina Democracy is being crushed in Mexico in order to uphold eco­ Menendez nomic policies that concentrate power in the hands of the few, and Milan: Marco Fanini New Delhi: Susan Maitra consign millions to die of hunger. On page 6, Agriculture Editor Paris: Christine Bierre MarciaMerry filesour firstnews report on the birth of a mass political Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi movement to reverse those policies: the new Food for Peace organi­ Stockholm: Michael Ericson zation, formed at a conference over Labor Day weekend in what was Washington, D.C.: Nicholas F. Benton, William Jones once the world's agro-industrial capital, Chicago. Wiesbaden: Philip Golub, Goran Haglund I would like to draw attention to the four important interviews in EIRIExecutive Intelligence Review (ISSN 0273-63/4) is this issue: Senator Munoz Ledo is the strategist for the candidate published weekly (50 issues) except for the second week of July and last week of December by New Solidarity who really won Mexico's presidential elections, Cuauhtemoc Car­ International Press Service P.O. Box 65178, Washington, DC 20035 (202) 457-8840 denas; General Teng was a top aide to the late Gen. Chiang Kai­ E""'fHan Helllf4uarters: Executive Intelligence Review shek; Mr. Elhanan is an Israeli expert on combatting locusts; and Nachrichtenagentur GmbH, Postfsch 2308, Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal Republic Adm. Daniel Murphy (ret.) has been the senior U.S. military officer ofGennany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, in the War on Drugs. Michael Liebig I .. Denmark: EIR, Rosenvaengets Alle 20, 2100 Copenhagen Finally, following up on our coverage last week of the Ramstein DE, Tel. (01) 42-15-00 Air Show disaster, we invite readers to endorse the call for full III Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. investigation of the possibility of sabotage in this and other incidents, JDptJII SubSCriptioll sales: D.T.D. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo printed on page 27. 160. Tel: (03) 208-7821. Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$I25, 6 months-$225, I year-$396, Single issue-$l0 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIillContents

InteIViews Departments Economics

10 Shmuel Elhanan 15 Report from Rio 4 Federal Home Loan Bank The head of Israel's Plant Anti-usury law approved in Brazil. Board goes off the waD Protection and Inspection Papering over the problems in the Department talks about how the 49 From New Delhi savings industry until the locust threat can be handled. Settling the Gorkha issue. November election is a very high­ risk business. And it is becoming more expensive every day. 13 Porfirio Munoz Ledo 50 Northern Flank The Mexican senator and Cardenas Swedish elections unpredictable. campaign manager discusses the 6 "Food for Peace" comes upsurge of nationalism that U.S. into being, pledges fight to Report from Bonn and Mexican rulers are now trying 51 end world hunger Left-wing corporatism on the to crush. Four hundred people met in march. Chicago on the Labor Day 36 General Teng Chieh weekend, and formed an Dateline Mexico The chief adviser to Chiang Kai­ 52 international action group that shek and senior Taiwan statesmen The case of the 25,000 voting shows every sign of becoming a talks about the threat to his nation booths. mass movement. from the mainland. 53 Andean Report 7 Peru plunges into drug­ 58 Admiral Daniel Murphy World Bank causes "natural dollar 'shock' The former head of the National disasters. " Narcotics Border Interdiction 8 AIDS in Africa: the WHO, Service calls for an all-out war on 72 Editorial World Bank want "cost­ drugs. When hunger reigns. effective" genocide The latest report proposes to help finance ministers decide to let people die. AIDS Update Science & Technology 11 Mexico's nationalist 8 AIDS in Africa: The 20 X-ray laser: the full report opposition blasts De la WHO, World Bank want of the GAO Madrid's economic lies "cost-effective" genocide Part 3 of Charles B. Stevens's And 137 of them staged a walkout report on recently declassified on his State of the Union address. 70 Inspection of migrant materials that reveal that EIR publicly, and Edward Teller et al. labor camps cut back 14 Currency Rates in secret reports, were right about the potential of this anti-missile AIDS found rampant Agriculture 71 technology. 16 among runaway teens Is fann parity pricing "outmoded"? 21 The GAO's report vindicates TeDer on the X­ 17 International Credit ray laser Another day older and deeper in debt. The full text.

18 Busiaess Briefs 27 Call for Investigation: Was there sabotage at Ramstein? Volume 15 Number 37, September 16, 1988

Feature International National

38 Yugoslav crisis may be S6 The defense crisis: Where heading toward civil war is George going? Economic chaos, ethnic clashes, By asking Henry Kissinger to co­ and a Serbian powerplay have chair a "national security task made the Balkans once again "the force ," Bush may have told us powder keg of Europe." more than all his speeches put together. 40 Unrest in Russian Empire multiplies: Poland and Friends high places Schoolchildren in Bangkok. Thailand. 63 in Armenia Part 2 of a series on the secret government of Michael Dukakis in 28 LaRouches in Asia: 42 Soviet base in Syria signals Massachusetts, by an EIR Combat instability by new offensive in the investigative team. development Mediterranean American political leader Lyndon 6S Irangate fizzling as LaRouche and his wife Helga 44 Is Sikh terror being election issue Zepp-LaRouche visited Thailand, reactivated? Japan, and the Republic of China 66 Elephants & Donkeys (Taiwan), and told senior officials 4S Wali Khan is up to no Duke revs up dirty tricks and policymakers that the task at apparatus. hand is to build an alternative good, again international network of patriotic 67 Eye on Washington leaders if the dire crises favoring 46 Another U.K. defense humanity are to be solved. scientist found dead U.S. helping Soviets cool out Poland. Documentation: From LaRouche's speech at a dinner 47 Fight to save Philharmonia reception in Bangkok. Hungarica orchestra stirs 68 Congressional Closeup a deep response 33 Across the Formosa 70 National News Straits, thirty years after S4 International Intelligence Quemoy-Matsu

36 A conversation with General Teng

Correction: Due to a production error, the byline was left off the article on page 11 of our Aug. 26 (No. 34) issue, "IMF forces fall in Brazilian population." The author was Silvia Palacios. • �TIillEconom.ics

Federal Home Loan Bank Board goes off the wall by Joyce Fredman

The largest insolvent savings institution in the United States merger. The new company kept the names ofFCA and Amer­ to date, American Savings and Loan Association of Stock­ ican Savings, and Charles W. Knapp became chief execu­ ton, California, was the latest recipient of the federal bu­ tive. Knapp's regime was part of the high-risk speculative reaucracy's funny money. On Sept. 5, a total of $2 billion trend that was sweeping the country. He paid high interest was pledged by theFederal Home Loan Bank Board(FHLBB) rates on deposits and made real estate loans that other insti­ to assist Robert M. Bass Group, the corporation set up by tutions had rejected. Texas corporate raider Robert M. Bass, in prying American By August of the following year, the thriftwas faced with Savings and Loan away from its parent company, Financial mounting deposit losses and borrowed $500 million from Corp. of America. Federal Home Loan Bank of San Francisco. As FCA stepped Within 36 hours after this latest maneuver, FHLBB chair­ up its borrowings to fend offa worsening deposit run, regu­ man M. Danny Wall was before the House Banking Com­ lators came down on Knapp. By Aug. 28, 1984, Knapp mittee, explaining his contradictory thesis, that although resigned and was replaced by William J. Popejoy. Congress should not be alarmed in the least, and although the Although FCA reported losing $6.8 billion in deposits in FHLBB has everything under control and is fully equipped the third quarter in October, by January 1985, Popejoy was to deal with the problems of the thrifts, still theFHLBB needs sanguine, announcing, "Th� good news is, the bad news the promissory notes issued by the Federal Savings and Loan should be behind us soon." Guess again, Bill. By March 8, Insurance Corporation (FSLIC) to be backed with the full FCA had revised their estimate of annual losses to $700 faith and credit of the United States Treasury. million. On April 1 , FCA announcedit had lost $5 12 million It is no accident that the hearing took place so soon after in the fourth quarter, bringing annual losses to $591 million, the American Savings deal. The $2 billion in assistance an S&L record. On May 16, American Savings disclosed that pledged by FSLIC is the most costly single rescue for the it had lost $1 billion in deposits. The saga continued in a bank board so far. (But not the most costly transaction; that similar vein for two more years. distinction goes to the merger of eight insolvent thrifts into By Jan. 21, 1988, FCA's net worth was wiped out by Sunbelt Savings FSB of Dallas, where the board will inject $225 million in fourth-quarter losses. FCA' s red ink for 1987 minimally $5.5 billion.) Both the chronology of events lead­ was $468 million! Six days later, it requested a $1.5 billion ing up to the takeover and its new owner, Bass, were bound bailout from FSLIC for American Savings. It was not until to raise plenty of questions. Feb. 4, 1988, that Rep. Fernand St Germain (D-R.I.) began a congressional investigation into the regulatory handling of From Financial Corp. of America to bust this insanity. On Jan. 11, 1983, Financial Corp. of America (FCA), But as the losses piled up, Danny Wall went into gear. the parent company of State Savings, in Irvine California, On April 21, confirmation was given that an exclusive pact announced a merger with First Charter, the owners of Amer­ with billionaire Robert Bass had been signed to negotiate the ican Savings and Loan. By August, regulators approved the sale of American Savings. Thedeadlines for finalizationcame,

4 Economics EIR September 16, 1988 were extended, and passed. On Sept. 5, the agreement was govemment, and therefore any resolution would simply be reached: The Bass group invests $550 million, and FSLIC redundant. Rather, everyone should let well enough alone. provides $500million in promissory notes and a promise of Particularly objectionable to the Treasury was the idea of $1.5 billion in cash over the next 10 years. Congress setting any limits or restrictions. "The Bank Board Financial Corp. of America, the nation's second largest has told the Committee and the public that it will not issue S&L holding company, had, as of June 30, liabilities exceed­ notes beyond its available, identifiableresources over time." ing assets by $387 million. They will filea petition for Chap­ Unfortunately for everyone, they already have. ter 11 bankruptcy. Popejoy resigned as chairman and CEO According to the official figures, the total amount of of Financial Corp. FSLIC's obligations is conservatively $22.5 billion. The to­ tal annual interest outlay requirement on these obligations is Bass fishing estimated to be $3 billion. FSLIC's currentfore seeable level The 40-year-old recipient of this circus has had quite an of premium income is approximately $1.85 billion annually. active year himself. First, Robert Bass had acquired the Wes­ To put this in perspective, during the first half of 1988, tin hotel chain from Allegis Corp. for $1.53 billion. Then in FSLIC's actual cash outlays for principal and interest on its March, he sold the Plaza Hotel in Manhattan to fellow bil­ notes and bonds totaled $1. 143 billion. This amount is 74% lionaire Donald Trump, for $4 10 million. In May, he bought higher than FSLIC's premium and interest collections of out the Bell & Howell Co. of Skokie, Illinois, a publishing $658 million during the same period last year. and information service, for $702 million. Now Bass has One of the shrewder S&L watchers, Bert Ely, also point­ acquired the country's largest insolvent savings institution. ed out that, in fact, this is the most expensive way to deal Clearly, the fellow has money to throw around. But like with the situation. "All the FSLIC notes do is postpone the most of his set, he never had to work for it. He is an heir to day when cash is paid out to resolve a failed thrift. Effective­ his uncle's oil fortune. From prep schools like Phillips An­ ly, these notes are nothing morethan post-dated checks drawn dover Academy, he went on to Yale and Stanford. One ac­ on the U.S. Treasury. Yet FSLIC notes are a more costly count has it that Bass spent his free time at Yale making slugs source of funding for FSLIC than direct Treasury debt of out of soda can flip-topsfor use in the parking meters in New comparable maturity." The interest rates are a good three Haven. Such are the makings of the Texas upper crust. His points higher. seedy character and ruthless raids have been the last straw for some, however, and at long last, Congress has noted that Stirrings in Congress there may indeed be quite a disaster looming on the horizon. The situation is so egregious that even some of the dolts in Congress are finally waking up to the reality that EIR has Full faith and credit been reporting on for years. Rep. Charles E. Schumer (D­ Danny Wall came before the House Banking Committee N.Y .) testified: to give testimony as to why Congress should give full faith "In the same breath, Chairman Wall maintains that the and credit to the Bank Board. He cited the resolution of 47 Congress need not be concerned, that the Bank Board has ''troubled'' institutions (more commonly known as "zom­ now and will continue to have sufficientresources to resolve bies") in 1987 and 54 this year to date, as proof that the the massive problems in the thrift industry.... Well , this situation is completely under control. congressman for one is deeply concerned. . . . Indeed, the Wall also explained the advantages of using notes as ease with which the Bank Board has spoken recently of bil­ opposed to cash-never stating the obvious: that they don't lions and billions and billions of dollars, makes them sound have it. Wall said that interest on the notes is not taxable, as more like Carl Sagan than prudentregulators protecting the long as certain (vague) criteria are adhered to, as well as the public's interests .... fact that a holder of a note may sell it at a premium. This "Given that the Bank Board has not provided adequate enables the owner to convert the note to cash. Not a bad idea, and timely information, that it has consistently underesti­ considering the note itself is considered worthless in most mated the size of the problem, that it refusesto acknowledge circles. After 20 pages of justification for his actions, Wall that the crisis is bigger than the Board can handle, it is dan­ concluded that it is urgent for Congress to pass a resolution gerous to give the Bank Board a blank check. . . . Looking backing him up. at the transactions already completed, the Southwest Plan "Consequently, one can only judge whether the FSLIC is seems to be nothing more than a massive shell game in which heading in the right direction based on its recent tract record." insolvent institutions are reshuffled, the names changed, and That is the most honest statement in his whole testimony. little if any real capital injected, resulting in thinly capitalized George Gould, Undersecretary for Finance of the Trea­ weak institutions. " sury Department, then submitted his testimony. This testi­ Papering over the problems until the November election mony was even more absurd. Gould insisted that the actions is a very high-risk business. And it is becoming more expen­ of the Bank Board are backed by the full confidence of the sive every day.

EIR September 16, 1988 Economics 5 'Food for Peace' comes into being, pledges fight to end world hunger by Marcia Merry

Over the Sept. 3-4 weekend, some 400 people met in Chicago drug production and stop the protection of drug finance, and on the theme , "Food for Peace," and formed an international to shift drug-growing land intofood production; the need for action group, pledged to battle world hunger, which has food irradiation to protect and permit wider distribution of every sign of becoming a mass movement. Represented were food supplies; and the necessity of parity prices for farmers 30 states, and 10 nations; the largest group of participants worldwide. were farmers from all locations. The conference was co-sponsored by the Schiller Insti­ "It is now urgent that we massively expand food produc­ tute, a transatlantic think tank founded in 1984 by German tion in this and every other country," state the founding national Helga Zepp-LaRouche, to promote policies of eco­ principles of Food for Peace. "We must ensure that not one nomic growth and traditionalcultural , scientific, and military person goes hungry or needlessly dies for the lack of food, links among allied nations. Mrs. LaRouche issued a call for which we could easily produce with the correct policy. To action on the agriculture crisis in August of this year, which accomplish this awesome but necessary task will require that began by saying, "Unless the current policies of the U.S. we build an ever-expanding movement in the United States Department of Agriculture and the European Community together with our friends from other countries, whose goal bureaucracy are immediately stopped and replaced with an will be to feed the world." emergency world food program, not only will hundreds of millions of human beings be threatened with death by star­ Drought disaster sparks action vation, but a worldwide food shortage will threaten world The initiative for the conference and the new institution peace in the most dramatic way." came about over the summer as drought devastated the U.S. Hundreds of people responded to the emergency confer­ and Canadian breadbasket, which accounts for 58% of annual ence initiative, because of anger over the blatant lies about world grain exports . During the 1980s, world weather pat­ the world food situation being promulgated by officials in terns have been worsening, to the point that simultaneous Washington, Brussels, and elsewhere. The U . S. Department disasters now ring the globe: the succession of drought and of Agriculture and the EC Agriculture Commission continue floods in Sudan and Chad, in the Yangtze Valley in China, to maintain that food stocks are "in surplus," cropland reduc­ and most recently the catastrophic floods in Bangladesh, tion policies (land set-aside) should continue, and that food leaving 21 million people homeless. must continue to flow to the Soviet Union uninterrupted. Diplomats from Sudan and Senegal reported to the con­ Officialsinsist that any disruption of food supplies and price ference on the state of emergency posed by locust swarms in inflation because of the North American drought will be northern Africa, and by the lack of food and devastating minimal. floods. Agil Elmanan, economic counselor of the embassy of Sudan in Washilgton, stressed that his nation could be the The food output decline breadbasket of Africa but for the debt crisis, which has halted Countering these lies, on Sept. 3, farm representatives all infrastructure improvements . The needed Jonglei Canal gave firsthand reports on the extent of the food crisis around sits 65% finished. It could control flood drainage and create the globe. From North America, Elmer Kichula, of the Ca­ enormous irrigation potential. nadian Consolidated Agriculture Movement in Saskatche­ An emergency resolution was passed pledging to organ­ wan, spoke of the drastic fall in Canadian spring wheat. The ize attention on and assistance for Sudan. Canadian government announcedin late August that all talks In the course of the conference, five other resolutions on future grain sales have been suspended, and that outstand­ were adopted on pressing matters of food supply: the need to ing grain export contracts will be filled on a deferred basis. dissolve the General Agreement on Tariffsand Trade (GAIT) Gerald Kopp, a farmer from Raleigh, North Dakota, de­ and break the power of the food cartel that stands behind it; a scribed the same devastation to Dakota crops and livestock, campaign to reforest the Amazon rain forest to reverse dete­ reporting, for example, that there is not even sufficient seed riorating global weather patterns; the need to obliterate all from this year's harvest to put in next year's barley and other

6 Economics EIR September 16, 1988 small grains crops. Fanners fromFra nce, Denmark, and West Gennany spoke on the food crisis in Western Europe. Fritz Hennann, Na­ tional Board member of the Danish Agriculture Association, Peru plunges into reported that in Denmark, one-tenth of all farmers will be forced off the land this year, and another 10% next year. drug-dollar 'shock' From West Gennany, Frido Peper, vice president of the Charolais Breeders Association, reported that a full two­ by MarkSonnenblick thirds ofthe Gennanfarm population has been dispossessed or soon will be, because of EC food reduction policies. Chris­ tian Procquez, chainnan of the French Federation of Agri­ On Sept. 6, Economics Minister Abel Salinas proclaimed culture for the Marne region, stressed that the fundamental President Alan Garcia's long-expected repudiation of his at­ "rightof the nation to feed itself' is at stake . tempt to hasten Peru's development in a world going crazy From Thero-America, two speakers gave stark reports on with monetarism. Peru's new "orthodox shock" program Colombia and Mexico. Carlos Macias, from the board of the should warm the hearts of the International Monetary Fund La Laguna Regional Cattlemen's Association in Mexico, and other ideologues of neo-liberalism. But, the productive reported on the devastation to livestock and feed, especially economy will be eradicated, leaving nothing standing except because of the lack of infrastructure. Dr. Adriano Quintana a thriving cocaine export sector. Brutal gutting of living Silva, president of the Colombian Cereal Producers Federa­ standards will bring social upheaval which will undermine tion, reported on how Colombia's agriculture potential has republican government and virtually hand the country over been impeded by cartel food dumping, while the drug trade to the barbaric Shining Path narco-terrorists. has been a source of "violence and ruin" in the countryside. Salinas expounded a drastic package of monetarist and Many other reports were given, and the cap on the global Schachtian measures. The pretext is to fight inflation and summarywas provided by John Neill, a farmer and business­ save dollars. "This is the hour of austerity and discipline," man fromNew Zealand, who stated that 20,000 of his na­ Salinas said. tion's 60,000 farmers would be out of operation in the next The Peru package dismantles existing dirigist measures year. Traditionally self-sufficient in grain and a large export­ which promoted productive activities and tried to limit spec­ er of sheepmeat and dairy products, New Zealand will soon ulation. From now on, the entire economy will be keyed to bedependent on grain imports for over 75% of its needs. All the "free market" rate at which dollarsbrought in fromboom­ of this is the result of deliberate government,and Internation­ ing cocaine exportsare exchanged for the Peruvian inti. The al MonetaryFund , policies. inti was devalued to 250 to the dollar, which means it will An in-depth report on the role of GAIT and the policy cost eight times as much to pay for vital importsof food and influence of the Trilateral Commission and food cartel was medicine. The burden will be borneby consumers. The gov­ presented by West Gennan Uwe Friesecke of the Schiller ernmentquadrupled the price of gasoline to $1 a gallon. Pasta Institute Agriculture Commission. His fellow panelist, Dr. increased 250%, bread 171%, powdered milk 100%, rice Fred Wills, fonner Minister of Foreign Affairs of Guyana, 140%. Other prices will double or quadruple duringthe next ridiculed the euphemisms of the IMF circles, who say, for 10 days, and then will be frozenfor 120 days. example, there are problems today of "condensed demand," To fool labor, the minimum wage will rise by 150% and when they arereferring to "starvation." wages for other workers will go up $36 a month . These The editor of the pro-nuclear science magazine, 21 st C en­ increases barely compensate for the 50% reduction in real tury Science and Technology, Carol White, led a panel of wages since the last pay boost in July. That means living presentations on what can be done to reverse the collapse and standards of wage earners will be frozen for the next four provide abundant food. Dr. Martin Welt, a pioneer in food months at approximately one-quarter of what they were dur­ irradiation, spoke of the huge gains possible in food storage ing the first two years of the Garcia government. and preservation through food irradiation technologies. Dr. As the implementation of the package approached, store Frank Salisbury, plant physiologist from Utah State Univer­ shelves went bare as consumers and merchants hoarded goods sity, showed the huge potential of plant production in con­ before prices soared. On Sept. 6, police used tear gas and riot trolledenvironmen ts, which he researches in order to deter­ clubs to repulse hundreds of people who began looting stores mine how to produce crops on the Moon. near Lima's main market. The government reminded the A press conference in Washington, D.C. was held Sept. people that a state of emergency, permitting deployment of 9 at the U.S. Department of Agriculture to announce the army troops against civilians, was in effect. After the an­ formation of "Food for Peace." The group will actively cam­ nouncement, Lima was paralyzed-stores closed and buses paign for agriculture policy change in all OECD member stopped running. The unions are expected to go on general states, and in most Third World nations. strike.

EIR September 16, 1988 Economics 7 The hope generated by the upswing in production and living standards Garcia generated after taking office in 1985, when he limited payments on the foreign debt permitted Peru to contain and roll back the Shining Path terrorists. As Garcia lost courage in his fightto smash his nation's enemies, Shin­ ing Path has gained much ground. His Sept. 6 declaration of in Mrica: the war against the Peruvian people is a surrender of the minds AIDS and heartsof his people to the narco-terrorists. want 'cost-effective' 'Bolivian shock' for Peru Senate President Romualdo Biaggi revealed that the shock policy had been inspired by Harvard economics professor by Jutta Dinkermann Jeffrey Sachs. Sachs is touted for prescribing the 1985 Boliv­ ian economic shock, which succeeded in reducing its hyper­ The "Global Program on AIDS Progress Report Number 3" inflation to only 66% a year. That's nice. But Sachs threw from the World Health Organization, dated May 1988, is a Bolivia into the worst depression since the 17th century. He prescription for doing nothing about the spread of AIDS leftit with an economy in which cocaine traffickingis at least because it generally costs too much for a world with "fixed four times the size of the legal economy. resources." It may, says the WHO, be more "cost-effective" In Bolivia, "free market rationalization" resulted in the in many countries for the "the Finance Ministry" to make the firing of two-thirds of the miners at state-run tin mines. That decision to let people die, especially if they're poor. may sound attractive to advocates of private enterprise. But The reportreads on page 23: the country's private manufacturing industrywas also wiped "Global Program on AIDS [of the World Health Organi­ out, by the decimation of working class buying power, usu­ zation] and the World Bank are collaborating in studies of rious interest rates, the end of subsidies, and much heavier the economic impact of AIDS and in measures to improve tax burdens. planning for the expected caseload. The initial phase of the Bolivia's gross national product has declined every year development of a model for estimating the direct treatment­ since the "Bolivian miracle" began. Yet, the area planted in related costs and the indirect costs from the years of social coca bushes has doubled, going from 198 ,000 hectares in and economic productivity lost owing to HIV infections and 1985 to 372,000in 1987. In the theoretical piece Sachs wrote AIDS has been completed in three Central African countries in the American Economic Review last year, he says not a during the firstquarter of 1988. Issues addressed include: the word about cocaine. His only mention of the "parallel econ­ projected effect of AIDS on the supplies of essential drugs, omy" is to boast that he helped the governmenttax criminal the possibility, that AIDS patients will displace other pa­ profits and use the resulting revenues to pay debts. tients, whose problems could be cured using available ther­ Peru has gone broke. The central bank reported that for­ apies, and the threat posed to a country's development pros­ eign exchange reserves were negative $260 million. Peru had pects by the years of productivity lost owing to AIDS and to ship $160 million in gold bars to Gerald Metals in Lau­ other clinical conditions due to HIV." (Emphasis added.) sanne, Switzerland in early September, to keep open its last One of the joint WHO-World Bank studies that is being trade credit lines with the Latin American Integration Asso­ referred to is entitled, "The Direct and Indirect Costs of HIV ciation. Infection in Developing Countries: The Case of Zaire and Garcia's chief political adviser, Hugo Otero, gave this Tanzania," published on April 8 , 1988. This is a cynical piece explanation for the economic crisis: "The lesson of the past of paper. Its goal, in its own words, is to be "useful to three years is that the internationalcommunity is not prepared decision-makers who must choose how much of a limited to brook our independent nationalist stance." supply of financialresources to allocate to AIDS prevention Salinas declared, "We must increase our foreign reserves and control relative to the prevention and control of other to increase stability and regain credibility in the world of diseases or investment programs in other sectors. " international finance." He implied that Peru would be re­ In otherwor ds: It is not the World Bank's or WHO 's aim warded by "friendly governments" like the United States, to investigate how to expand the "limited resources," so that Canada, and Belgium with $300 million in bridge loans to everybody who needs help, actually will get it. pay arrears to the World Bank and thus re-enter the lost The authors of "The Direct and Indirect Costs" definethe paradiseof well-behaved debtors. direct costs of a disease as the cost of treating those who If Garcia believes that, he is not only a coward, but a suffer from it. The indirect cost is the value of the healthy fool. No amount of groveling and genocidal austerity will years of life it steals from society. They calculate the direct bring him a pardon from the bankers for the challenge he costs of health care per symptomatic HIV -infected persons once posed to international usury. in Zaire from a low of $132 to $1,585 , the higher figure 12

8 Economics EIR September 16, 1988 Tanzania Rural adults $2,425 Urban primary school $3,880 Urban secondary school $5,093

The study ends by cynically supposing "that now the World Ministry of Finance deision-maker knows that a certainquan­ WHO, Bank tity of financial resources could alternatively be allocated genocide either to producing a known monetarybenefit in the transport sector or to a health care program which would prevent a certain number of cases of a disease such as HIV-infection. The figures will then permit that decision-maker to place a minimum monetary value on those prevented cases. In cases times larger than the lower-depending on whether the pa­ where this minimum produces a monetary return from the tient can choose to seek modern medical care or must stay in health sector investment which equals or exceeds that of the the village and be cared for only by relatives. In Tanzania, equal cost transport sector alternative, the decision-maker the estimated direct cost ranges from a low of $104 up to would be guided toward the health sector investment." (Em­ $631. Concerningthe indirect costs, they estimate that pre­ phasis in original.) venting one case of HIV -infection will save an estimated 8.8 What ifnot? And what kind of"choice" is that, given that healthy life years. the building of an infrastructure in the long term and the Worth noting is that, according to this measure, HIV­ fightingof diseases are equally vital? infection ranks fifthafter sickle cell anemia, neonatal tetanus, birthinjury , and severe malnutrition, but ahead of childhood World Bank AIDS 'prevention' prosposals pneumonia, cerebrovascular disease, tuberculosis, measles, Of course, World Bank officials also deliver their pro­ malaria, and gastroenteritis. posals on how to prevent AIDS cases. Given the nature of At this point, the unnamed "decision-maker" shows up the power the World Bank has, given the fact that the World again. "However, suppose the decision-maker is located in Bank is financing WHO's AIDS policy, and given the fact theMinistry of Finance rather than in the Ministryof Health. that the WHO dismisses any collaboration with a nation which This individual would want to know whether to reallocate does not follow their proposals, compliance is a must for money away from other, demonstrably productive sectors every nation to get at least some money. like transport and communication, to the prevention of dis­ The abstract of a study by the World Bank with thetitle, eases or perhaps to the prevention of a specificdisease like "Implications of Control Measures For the Spread of HIV AIDS. The computations we have done to this date are no Infection," reads as follows: help to this decision. It is necesary to take a third step, "The effectsof changes in sexual behavior and of medical attaching a monetary value to each of the productive healthy interventions on the spread of HIV infection are illustrated life years to be saved." using an epidemiological-demographic model for transmis­ The study states that three general groups of the popUla­ sion and progression of the disease. Parameters were chosen tion must be distinguished-the rural , the urban with a sec­ for the model to represent an African country with relatively ondary education, and the urban with higher than secondary high HIV seroprevalence, high fertility, and high mortality. education. By weighting the productive years of healthy life Condom use is the most effective of the interventions as­ lost to disease by the average income per year of these three sessed. Reducing genital ulcers, providing clean needles, groups, they hope "to provide some professional guidance to and cleaning the blood supply have minor effects." (Empha­ the decision-maker faced with the problem of inter-sectoral sis added.) resource allocation." Then, the actual study begins: "No controlmeasures will In other words, by insisting that the given resources can be adequate to prevent many infections and deaths fromHIV not be expanded, they provide professional guidance to the in the next two decades, but changes in sexual behavior could decision maker on how to undertake triage. moderate the spread of the epidemic." Expressed in hard dollars, the value of future healthy life The message is clear: Nothing but condom use will be years they give is as follows: proposed to fight AIDS in Africa. The "scientific" ground is prepared, to prevent Africans from getting AIDS test kits, Zaire clean needles, or blood-screening equipment-the absolute Rural adults $ 890 minimum needs of any health care structure. Urban primary school $1,780 Whoever wants to fight AIDS in Africa hasto fightWHO Urban secondary school $2,669 and World Bankkillers .

EIR September 16, 1988 Economics 9 mobilize. This is the opposite of Africa,where the locust Interview: Shmuel Elhanan organizations disappeared overthe past two decades,because of the lack of funds. Elhanan: Yes.We have a 24-hour phone line that we pub­ licize that people can call if they see any locusts.Years ago, when we had some locusts every few years,we kept our own vehicles ready,and chemicals, and teams of people who were Israel mobilized to trained.But we found that we could mobilize fast enough without this. Now, we have a standing contract with air­ spraying companies, which can immediately mobilize. In win against locusts fact,we have more than three companies with agriCUltural spraying planes-Thrushes, Pipers,and choppers as well, Shmuel Elhanan is the head of Israel's Departmentof Plant which can be used for reconnaissance or for spraying.They Protection and Inspection. He was interviewed on Aug. 5 by have airstrips all over the country . Marjorie Mazel Hecht. We also have a standing contract with a public weed control company,which s� many years ago as part of EIR: There was the danger this spring that locust swarms our department.They have suitable equipment for spraying from East Africa and Saudi Arabia might reach Israel.Are roadsides and public areas by machine. We can use their you prepared to defend against them? resources as needed.In additibn,we can alert the farmers in Elhanan: I will tell you how we have mobilized.I am not nearby areas to mobilize their equipment. shy,but I am reluctant to say if our plan would succeed 100% or not,because we are only speaking about theory,although EIR: Do you produce your own chemicals-malathion and it is based on past experience and the experience of others. fenitrothion? Fortunately,we have not had to use the plan in practice, Elhanan: We produce some and import some. We could because we haven't had locusts since the end of the 196Os. mobilize immediately a large amount produced here if we Only in the last two years have locusts reached the northwest needed it for spraying swarms. As soon as we had the alert, of Saudi Arabia,around the Tabuk area. Now,it has really we checked to findout that we had enough chemical materials started to be a danger, because in just two to four hours, and we did.So, all this together,our signal equipment,the locust swarms could reach us. 24-hour phone,these companies-and,if a very dangerous We are fortunate that for years we have had good recon­ alert should occur,I'm sure we could have even gotten help naissance in case any locusts were nearby.If we would have from the Army.. .. had direct contact with Saudi Arabia,this might have been better,or with Egypt,and I hope in the future this will be so. EIR: How much territory are you talking about? Because when you get the messages from FAO [U.N.Food Elhanan: Israel proper is 27,000square kilometers.So real­ and Agriculture Organization], sometimes it might be too ly,Israel is small,and that's why,with enough planes and late. equipment, and with proper use, both in air spraying and So what we are always building upon is,first of all,our ground spraying,and with mobilizing farmers,if necessary, own reconnaissance.This year when the danger of locusts I think we would not need any other special help .... arose,we turnedon the red lights.First we went to the public. And you know the media.It was what we call the "cucumber EIR: Unfortunately, in Africa,we are dealing with coun­ season " or dead season for news,and the media were more triestha t don't have telephone systems,that don't have infra­ than ready for the red lights,and they pumped up the warning structure.And the situation is terrible,because in the Sahel and echoed it so strongly that by the afternoon of the morning region,the FAO is predicting as much as 1 million tons of that I put out the notice,I had somehow to put out a few of food crops lost to locusts. the red lights in order not to overly alarm the public. Elhanan: You have to have theinfrastructure in those coun­ Being a small country, we are able to do a few things tries in order to achieve what we have achieved.. . . There which I think in larger countries are a bit more difficult,or is another problem,a fashion of environmentalism.. . . more complex. For years,we have in this department and in other units of the Ministry of Agriculture ready teams for this EIR: And when you combine this with the malthusianism purpose. We are training them from time to time on maps of the FAO,I think you get a picture that the FAO and the and topography and so on, and on civilian radio bands in environmentalists don't care if these people die; they think order to be able to mobilize them immediately. Africa has too many people. Elhanan: May I say that this is a stupid idea,a stupid notion. EIR: So,over the past 20 years,although you have not had To say a thing like that, that Africa is overpopulated, is a locust invasion,you have maintained the infrastructure to ridiculous!

10 Economics EIR September 16, 1988

;,!' Mexico's nationalist opposition blasts De la Madrid's economic lies by D.E. Pettingell

Mexican President Miguel de la Madrid delivered his sixth ico! " a common chant at soccer games."Fraud-Fraud-Fraud! " and last State of the Union message Sept. 1 in the midst of answered the opposition.De la Madrid,who had remained Mexico's most serious economic and political crisissince the emotionless through other interruptions,could not hide his Institutional Revolutionary Party (PRI) set up its political anger this time. monopoly in 1929.In an unprecedented act of protest over "With due respect ... with due respect," said Munoz the economic crisis and the massive vote fraud in Mexico's Ledo addressing the President. "Traitor,Judas, Exhibition­ July 6 national elections, 139 opposition congressmen and ist,Clown," the PRI representatives yelled at him."Let him four senators,all followers of nationalist presidential candi­ speak," the opposition demanded. date Cuauhtemoc Cardenas,staged a walk-out of the Legis­ "We have the constitutional right to speak ...we have lative Palace hall during the last part of De la Madrid's mes­ our own popular mandate.. .. If the President does not sage. allow us to speak,we will have to leave in sign of protest," The monologue was broken. The solemn ceremony where Munoz Ledo said.He walked out,followed by all the oppo­ the President would deliver,uninterrupted, a lengthy speech sition except the anti-nationalist National Action Party (PA N). before a passive and humble audience,belongs to the past. Shouts of "traitor, traitor " and "son of a bitch " were heard The farewell turned into an act of embarrassment for De la from all comers.The opposition's chant of "the people voted Madrid and his hand-picked successor, Carlos Salinas de and Cardenas won " dominated the room as they walked out. Gortari, who did not dare to show up, breaking a historic Turning to De la Madrid,who was forced to stop reading for tradition where the upcoming President always attends the 10 minutes,some opposition congressmen said: "Look at the last State of the Union message of his to-be-predecessor. country you are leaving us,you have destroyed the Nation. The daring show of repudiation for De la Madrid's poli­ You are the traitor." cies of looting Mexico's standard of living by 65% in the past Several PRI state governors went out of control. The six years to pay the foreign debt,put an end to the embedded governor from Aguascalientes took a swing at Munoz Ledo, idea that the Mexican President is an all-powerful and sac­ but missed and instead punched a reporter.The expression rosanct individual whose rule can go on unchallenged even of hatred in many PRI-men led an observer to comment: though he follows foreign imposed policies against the well­ "They would lynch him if they could get away with it." Once being of the people and the interests of the Republic of Mex­ outside the hall,Munoz Ledo commented,"What is happen­ ico. ing here wears the face of fascism." Almost three hours after De la Madrid had begun reading his speech, around 1:55 p.m. Sen. Porfirio Munoz Ledo, The debt, paid several times who had won Mexico City'S senatorial seat by a landslide, The State of the Union message begin at 11:05 a.m. stood up and said: "Mr.President .. . Mr.President." De la Cabinet members,governors, the Armed Forces high ranks, Madrid turned his head to the first row where Munoz Ledo the diplomatic corps,and many PRI former public servants was sitting and after identifying his interlocutor,pounded his as well as an army of domestic and foreign correspondents, fist once on the rostrum. Munoz Ledo,Cardenas's campaign attended the unusually packed Legislative Hall amid rumors strategist,had resigned from the PRI over the party's dicta­ that the opposition would break the rules of the game. torial tactics.He had been PRI chairman and had occupied De la Madrid had hardly started to speak when Congress­ several cabinet posts during the two previous administrations man Jesus Lujan from the Popular Socialist Party (PPS),got and was De la Madrid's ambassador to the U. N. until 1985. up and said: "I have a question for you Mr.President." But The head of the Lower House, Miguel Montes, a PRI Lujan was prevented from talking by Chairman Montes.It congressman,threatened Munoz Ledo with expulsion from was learned later that Lujan just wanted to ask the President the hall if he insisted on talking."He is a senator,he has the why none of the opposition legislators were given a prepared right to question the President," Cardenas supporters shout­ text,when it was widely distributed in Spanish to everyone ed.The PRI majority shouted back: "Mexico-Mexico-Mex- else and in English to the foreign media.

EIR September 16, 1988 Economics 11 The second interruptioncame at 11:45 when De la Madrid congressmanwilling to split from Cardenas and join the PRJ. praised himself for "clean elections " and called the July vote Threehave already accepted the deal: one fromthe Authentic "historic." Congressman Jorge Martinez interrupted: "The Party of the Mexican Revolution (PARM) and two from the people will not let themselves be represented by electoral Moscow-controlled Mexican Socialist Party (PMS). fraud." De la Madrid stopped.Montes begged,"Let us not A campaign of psychological warfare is being waged to break a republican protocol." "Total repudiation to the elec­ discredit thereal Cardenistas as "communists." Although the toral fraud! " the opposition chanted loudly.PA N legislators pro-communist PMS is the smallest and least influential group stood up,waving PRJ-printed fraudulent electoral ballots in among Cardenas's followers, and is not part of the FD N a sign of protest.The interruptionlasted five minutes. coalition,under Interior Ministry orders the Mexican media At 12:08,when De la Madrid praised his government's grant preferential coverage to the PMS and present PMS debt payment policies, he was told, "The foreign debt has Congressman Pablo G6mez (who headed Mexico's Com­ been paid several times,Mr. President." At 12:25 , when the munist Party before it adopted a different identity) as the President praised the selling of some of Mexico's most stra­ authoritative voice of the "opposition." tegic state-owned companies to foreign companies and for­ In truth,the PMS was the last party to endorse Cardenas eign-controlled Mexican businessmen,he was told,"That is in an opportunistic move three weeks before the elections, treason to the Fatherland." But De la Madrid persisted: "Of when, according to opposition sources, Moscow gave the 1,115 public companies that we had in 1983,765 weresold. " green light to infiltrate and try to discredit the Cardenista "Cananea,Cananea, Cananea! " chanted the opposition,re­ movement.PPS head Jorge Cruickshank says the PMS is the ferring to the copper mine of Cananea (Sonora),the biggest only party that has so far accepted the offer to "talk " with the in Ibero-America,recently sold by the government to Mor­ PRJ and government representatives.The Interior Ministry gan Bank-linked private interests. is using the "reds " to "satanize " the movement,an opposition When he praised his wife,Paloma, for distributing free leader explained. meals to starving children,he was asked "Why don't you The next step in the government's agenda is to try to refer to infant malnutrition! " Infant mortality and malnutri­ impose Salinas, ramming through his fraudulent victory in tion have risen since the administration began using 60% of the 5OO-memberCongress, where the PRJ has now increased the budget to pay debt to Wall Street banks. to 263. Already Congress, constituted in an Electoral College After the opposition left the hall,De la Madrid was able since Aug. 15,abdicated and proceeded to certify the elec­ to finish readinghis speech.He took the opportunityto attack tions of 500congressmen during sessions that dragged on for the Cardenist movement as "adventurist " and "populist" and over 24 hours,and were marked by PRJ intransigency,irra­ Cardenas as a "messianic leader." tionality,and illegality.On the pretext of needing to complete The whole nation,watching the State of the Union mes­ the process before Sept. 1 so that De la Madrid could carry sage on TV at home,was kept in the dark.Both the pro-PRJ out his yearly show, the PRJ majority forced the Electoral Televisa private network and the government-owned Imevi­ College to ignore 583 resolutions and many other fraud com­ sion,had trained technicians for a month ahead to black out plaints introduced by the opposition. Some of those resolu­ the opposition's rebellion. The screen would show images tions included recommendations by the National Elections relating to issues in the address during the intervals the Pres­ Commission to annul elections in districts where fraud was ident was forced to stop reading.The networks' microphones huge. were turned offwhen the chanting was too loud. Mexico and her republican institutions have already been deeply hurt by the De la Madrid government's arbitrary and 'Buying' the opposition illegal acts.The government has the last chance to clean up Since the elections,Cardenas has successfully mobilized its act and accept Cardenas's offer for a re-count. Mexicans in "defense of the vote." One day before the State Salinas intends to continue the same genocidal policies of the Union message,Cardenas and the leaders of his three­ which provoked the PRJ defeat in the polls,of debt payment, party National Democratic Front coalition, carried out a "privatization," and looting.Washington, so say Henry Kis­ 200,000 person rally at the Monument of the Revolution, singer and the State Department's Elliott Abrams, wants largely ignored by the media. Cardenas pledged to defend Salinas in power. But in pleasing Washington, the PRJ is the "popular will." He called on the government to take a playing with fire.To impose Salinas against the will of the sample of 1 ,0 00 electoral polls and re-count them,in order people who elected Cardenas for his debt payment repUdia­ to prove that massive fraud has taken place. tion and nationalist policies ,could unleash a process of social The regime has answered with police-state tactics. Six unrest that would be very hard to control.The type of anon­ Cardenas workers have been murdered.Cardenas followers ymous violence that has already taken place,could escalate are under constant threats and harassment.The government to levels much worse than during the 1910-17 Mexican Rev­ is offering,according to reliable sources, 100-500 million olution,when 1 million Mexicans died.Only Moscow would pesos (at an exchange rate of 2,300to the U.S.dollar) to any profit from it.

12 Economics ElK September 16, 1988 Interview: Porfirio Muftoz Ledo

Reagan's neo-liberal policies provoked upsurge of nationalism

Minutes before President MigueL de La Madrid read his Last will come with the intention of violating the Constitution. It State of the Union message to the Mexican Congress Sept. 1, is a very risky presumption . To say that 260 deputies of a opposition Sen . Porfirio Munoz Ledo, campaign strategist Congress come determined to violate the Constitution would fo r Cuauhtemoc Cardenas, granted the fo llowing interview be very daring. I don't believe it. on the floor of Congress to a small group of fo reign corre­ sp ondents, which included EIR' s D.E. Pettingell. EIR: The opposition has asserted that by controlling the majority of Congress, the PRI has voted illegally and arbi­ Wall Street Journal: Where is Carlos Salinas? Why isn't trarily. What guarantees are there that it will not do the same he here? when it comes to certifying Salinas? Munoz Ledo: I don't know, sir. Ask Salinas. He has no Munoz Ledo: ...It is very risky for them to do so. Because special right to be here. The election has not been certified, all the people are in the streets demanding that Cardenas be sir. . . . To public opinion and according to the figures that recognized. They are going to cause a serious problem in the are available, the candidate with the most votes is Cuauht­ country if the Constitution is absurdly violated. emoc Cardenas. The election is not certified;it is going to be certifiednext week. Everyone has an equal right to be here. EIR: What do you expect from this last State of the Union Juridically, there is no difference between Salinas and [Gum­ address by Miguel de la Madrid? ersindo] Magana [presidential candidate for the tiny Mexican Munoz Ledo: That it be given truthfully. It is what one Democratic Party , who received the least votes in Mexico's expects of the President of a great nation like this one. July 6 elections]. Period .... WSJ: This paragraph [of the address] struck me .... WSJ: But this is the first time in many years in which the Munoz Ledo: It is the first time that President de la Madrid "victor" is not present at the 1nf orme. . . . took a partisan approach ....If he takes sides, he is violat­ Munoz Ledo: The point is there is no "victor." To put "vic­ ing the constitutional mandate that he gave himself. He made tor" because you want to is purely a publicity maneuver. The a constitutional reform , giving the government, the Execu­ figures have not even been authorized by the Federal Elec­ tive branch, responsibility for directing the electoral process. toral Commission ....They are figures of the PRI and of The electoral process is not over, therefore the President of the government. . . . I am speaking very accurately, very the Republic cannot express himself in a partisan manner. It precisely. There is no victor. The victor in the eyes of all is a violation of the Constitution. . . . It has been many years national and world opinion is Cuauhtemoc Cardenas. But he since De la Madrid has given classes on constitutional law. has not yet been declared President-elect. We hope that he That is probably the reason. will be. La Opinion (Los Angeles): Why do you think that his ad­ EIR: Nonetheless, the PRI has the majority of votes in the dress barely touches on the electoral process? Congress, and is the body in charge of conducting the certi­ Munoz Ledo: I haven't read it. They haven't given it to us. fication. The representatives of the nation do not have the privileges Munoz Ledo: Yes, but the PRI cannot confront all the peo­ of the foreign press. How does one jump over an abyss? As ple of Mexico. It is taking a very large risk. I don't know if quickly as possible. It is obvious that he wants to avoid the the PRI will vote automatically. I suppose that they will theme as much as possible. The more one extends oneself, comply with their duty. I cannot presume that 260 deputies the more vulnerable one is.

EIR September 16, 1988 Economics 13 EIR: What do you think of the way in which the foreign urr press, particularly the U.S. press, describes the Cardenista movement in Mexico as leftist? C ency Rates Munoz Ledo: I have spoken with U.S.experts, and they tell The dollar in deutschemarks me that it is new,that it is over the last month or less,and New York late afternoon fixing that it is deliberate,calling us "leftists," "leftists," "leftists," "leftists." 1.90 � - - � - "- � - 1.80 N EIR: To what purpose? Munoz Ledo: To discredit us.I said it in the Senate,com­ 1.70 menting on Jesus Gonzalez Schmall [the PA N senatorial candidate who challenged Munoz Ledo's victory] who vir­ 1.60 tually accused us of being communists. I said that he was following the editorial line of the major U.S. newspapers. 1.50 That when democracy stems from the PA N,Hurray! Hurray! 7119 7126 8/2 8/9 8/16 8/23 8/30 916 Hurray! But when it comes from a nationalist force,then they The dollar yen no longer like democracy. in New York late afternoon fixing It is the great Reaganite trap.Reagan fell into a huge trap, for lack of reasoning and due to an excess of arrogance in ISO believing that one could .. . impose on Latin America a neo­

liberal economy,forcing it to pay the debt,punishing wages, 140 halting production,and triggering recession while at the same ..... time believing that one could encourage democratiza­ 130 "'-A. � tion.... There is an incompatibility between the attempt to win 120 economic hegemony and the attempt to win political hege­ mony,that can already be seen.The more Reagan forced his 110 7119 7126 8/2 8/9 8/16 8/23 8/30 916 hand in economic matters,the more he spoke of democrati­ zation,the more a nationalist and progressive democratiza­ The British pound in dollars tion emerged.Throughout Latin America the nationalist and New York late afternooa fixing popular forces are winning.But despite the fact that the party of Rodrigo Borja in Ecuador calls itself Democratic Left, 1.90 they don't call it "leftist." ... Despite the fact that Jaime Paz Zamora in Bolivia has been a member of the left for 25 1.80 years, they don't call him "leftist." They call us "left­ ists." ... 1.70 ../'� - " 'VI#' 1.60 EIR: Regarding Kissinger,what do you think of his recent commentary about Salinas? 1.50 Munoz Ledo: Well,that he should love him very much. 7119 7126 8/2 8/9 8/16 8/23 8/30 916

EIR: But do you believe that the banks have the lUXury of The dollar in Swiss francs giving Salinas a respite in debt payment,for political purpos­ New York late afternoon fixing es? 1.60 .-. Munoz Ledo: For the banks it is not a luxury.It is a neces­ .. � 1"'- sity.It is an enormous problem for the international banking � � I.SO � system to continue financing unpayable debts. It is much better to tum them into non-performing assets,with the sup­ 1.40 port of the international financial institutions and of govern­

ments,something we proposed seven years ago at the U.N., 1.30 which is approved in all the resolutions, and which they haven't wanted to do because of the stupidity of the Baker 1.20 Plan,which is nothing but a way of using thedebt for political 7119 7126 8/2 8/9 8/16 8/23 8/30 916 ends.

14 Economics EIR September 16, 1988 Reportfr om Rio by Silvia Palacios

Anti-usury law approved in Brazil the instructions of the finance minis­ The new Constitution limits interest rates to a maximum 12%­ ter,in the sense of continuing the cur­ and clashes with offi cial policy . rent policy independent of what may happen. " The Central Bank's director on public debt,Juarez Suares,joined the chorus of attacks against the new anti­ usury law,stating, "The limitation on ' interest rates is a regression; Get6lio Real interest rates, including the case for numerous policy areas in Vargas already tried it. " commissions and any other remuner­ Brazil,the law is studiously violated In addition,President Sarney's le­ ations directly or indirectly linked to by the government of President Jose gal adviser, Saulo Ramos,according the granting of credit, cannot be high­ Sarney,remains to be seen. to the daily 0 Estado de Sao Paulo. is er than 12% annually,and all charges In just the past month alone,the readying a communique for circula­ beyond that ceiling will be considered Central Bank offered financial insti­ tion to all official banks, instructing thecrime of usury,punishable by law. " tutions interest rates on government them outright to violate the 12% ceil­ The above is the text of Article 197 paper as high as 18% a year . With this ing, until the new constitutional law of the new Constitution of the Brazil­ policy,not only has the internalpublic can be "interpreted " by ordinary leg­ ian Federal Republic, which will go debt soared-to the benefit of a hand­ islation. into effect in early October. The anti­ ful of speculators-but investment in The 12% limit on interestdoes rates usury article,surprisingly approved by any real productive activity has been not, in itself,constitute a solution to the National Constituent Assembly in made absolutely prohibitive. This in the country's vast financial problems, its final days of session,reestablishes turnis driving the nation into the worst but it does pose the necessity for an the"law of usury " imposed by nation­ crisis in its history,buried under near­ urgent internal financial reorganiza­ alist President GetUlio Vargas in 1933, ly $250 billion in internal and foreign tion that can channel the more than against the oligarchical coffee-grow­ debts . $50 billion circulating on the internal ers,who strove to keep Brazil a colony Its insane monetary policies speculative markets into real produc­ exporting a single cash crop. threatened by the new usury law,the tion. The "law of usury," which estab­ economic team headed by Finance With such a reorganization, the lished the same 12% ceiling on inter­ Minister da N6brega has mounted an fantastic paper profits of the financial est rates, was a viW weapon in the offensive designed to eliminate,or at oligarchy could be wiped out in one economic armory of the dirigist Pres­ least delay,implementation of the law blow,and along with it their strangle­ ident,and endured until 1964, when it through legalistic ruses about sup­ hold on the Brazilian economy. was overturned by the coup which posed juridical ambiguities in the def­ If,to all this,one adds the fact that brought to power the government of inition of "real interest. " the new Constitution explicitly dic­ Gen. Castello Branco,under pressure Afterall, said da N6brega,"which tates that all international agree­ from the national and international is the concept of real interest? There ments-including those signed with creditor banks. exists a concept of real interest in the financial institutions-must first be The new usury law stands in total economic field,but not consecrated in discussed and approved by the major­ . contrast to the demented monetary the juridical field . " ity of the national Congress,the new policies of Finance Minister Mat1son Da N6brega has already ordered anti-usury law becomes still more ex­ da N6brega,Planning Minister Joao the Central Bank not to respect the plosive. It is no accident, therefore, Batista de Abreu,and the CentralBank new constitutional mandate, and in­ that Minister Mailson da N6brega took technocrats,who are bent on financ­ stead gave a green light to begin a final the first plane to New York City, to ing the internal public debt by selling round of negotiations on the internal personally pressure for the signing of government bonds at astronomical in­ debt,offering government paper at a an agreement with the international terest rates. real interest rate of 15.9%. Central banks and the International Monetary Whether the new law succeeds in Bank President Elmon Camoes Fund before the new Constitution goes . straitjacketingthe monetarists or,as is pledged: "We are going to carry out into effect.

EIR September 16, 1988 Economics 15 Agriculture by Marcia Meny

Is farm parity pricing 'outmoded'? my,the entire fann sector is in crisis. Only the fo od cartel companies would think so, but that's always However,the cartel wants its right to underpllY maintained under any cir­ good enough fo r the Department of Agriculture . cumstance. Therefore, the USDA Economic Research Service is coming out with cartel-serving propaganda, about how "outdated " parity pricing Now that the drought has hit u. S. senting parity fann prices. Basically, is. fanners hard,on top of years of heavy parity pricing means fair pricing. Par­ What the report calls for as an "al­ debt service and low fann prices,the ity prices ensure that the fanner is get­ ternative" to parity pricing policy,is need for parity fann price levels has ting a price that roughly covers his "parity income policy. " By this, the never been greater. Whatever the Ag­ costs of production,and also gives a USDA proposes that the government riculture Department's Sept. 12 crop return on investment that permits the could give a lump sum to small fann forecast says (the department noto­ fanner to continue to conduct present producers,who do not have the vol­ riously overstates harvests and stocks), operations,and at the same time,make ume output to benefit if fann prices the com crop will likely be down by needed capital improvements. In this are raised. 50%,soybeans down 35%,and spring way,using the parity mechanism,the The USDA cloaks its argument in wheat down 50%, differing by type food supply is guaranteed for present expressions of "concern " for the well­ and location. and future generations. being of the small fanner,but fails to The August Drought Relief Act is In both world wars, a policy of comment on the glaring subsidy to the like a bucket of water for a fire. The parity pricing formed part of the all­ cartel involved in the USDA plan. The core of the act's "assistance " mea­ out mobilization that produced food USDA proposes that the government sures simply offers fanners more loans for both Allied military and civilian budget give money to a category of for "drought relief," at a time when requirements . small fanners as a sop,while the cartel fanners need relief from debt. The However,after the mid-1950s,the food companies continue to pay low U. S. fann sector could successfully federal government abandoned the prices to the larger fann operations, withstand even the killer Drought of commitment to parity pricing. In the under the rationalization that their vol­ '88, but only in a context of parity last 30 years,the prices paid by fann­ ume will guaranteethem a "parityfann prices and reliable agriculture infra­ ers has far exceeded the prices re­ income " even if prices are low. The structure-water supply, transporta­ ceived by them. A table presented in USDA anti-parity report features a bar tion,and industrial and scientific in­ the Agriculture Department's anti­ diagram "proving " its point on the de­ puts. parity report shows this graphically. sirability of the "parity fann income," However,for the past few years, A cartel of a small number of se­ by showing statistics titled, "Large­ the Agriculture Department and relat­ cretive international food trading Fann Income Responds More to a 1 ed networks of agriculture "experts " companies (Cargill, Continental, Percent Price Increase than Does on campus,have propagandized that Louis-Dreyfus, Archer Daniels Mid­ Small-Fann Income. " fann parity pricing is outmoded. In landIToepfer,Bunge, Andre/Garnac, The report concludes by saying, September 1987,a report was issued Nestle,Unilever) has consistently un­ "Parity prices were designed to help called "PriceParity, An Outdated Fann derpaid for U.S. fann commodities. fanners achieve parity income. But, Policy Tool? " by Lloyd Teigen, an The federal fann income support pro­ the means has taken on a life of its Agriculture Department staff member �ms (of loans,price deficiency pay­ own and the end has been all but for­ (USDA,Economic Research Service, ments, and other mechanisms) have gotten. Significant defects in the way Agriculture Information Bulletin No. evolved in the last 25 years,to serve parity prices are calculated have erod­ 531). This report presented a goobled­ the purpose of keeping family fanners ed the usefulness of parity prices as a ygook argument that asserts,"Changes at a minimum level of existence, in federal fannpolicy instrument. Fixing in the structure of agriculture and the order to still produce output for the these defects would make the parity distribution of income among produc­ cartel to obtain at below costs of pro­ price formula work better. Even then, ers make parity prices obsolete indi­ duction. the parity price is only an instrumental cators of fanner well-being. " Now,because of the drought,and means,and not the goal of fann poli­ The report begins by misrepre- the deterioration in the overall econo- cy. "

16 Economics EIR September 16, 1988 International Credit by William Engdahl

Another day older and deeper in debt by J.P. Morgan and the architects of The situation on the world credit markets brings to mind an old the Versailles Treaty and the Dawes and Young Plans. The consequences lament. of that policy was the Great Depres­ sion of the 1930s. Total Ibero-American debt today As world interest rates continue their price of petroleum from $2.50/barrel is, according to the Economic Com­ steady climb over recent months, at­ to more than $40/barrel by 1980. Hen­ mission for Latin America (ECLA), tention again comes to the problem of ry Kissinger and other strategists an­ four times annual exportearnin gs, and the debt of developing nations. A new ticipated "recycling petrodollars" from still climbing. It is no wonder that report issued by the Mexican national OPEC, via London and New York debtors are reaching the breaking trade union confederation, CTM, banks back to the oil-importing na­ point. points out an alarming fact. Between tions that needed to finance this un­ Since 1982, creditor banks have 1982 and 1987, Mexico has paid fully expected oil deficit. brought in the International Monetary $50 billion in interest on its external But banks such as New York's Ci­ Fund to impose draconian (and ulti­ debt. Yet the country's total identified tibank or Lloyds in London were clev­ mately self-defeating) country import debt, according to a new OECD study er enough to set "free market" condi­ freezes, state budget reductions, cuts issued in July 1988, went in the same tions on their developing sector lend­ in wages and living standards, and period from $96 to $110 billion. ing. The interest rates for loans made have subordinated entire nations to re­ The Mexico case is typical of var­ from the unregulated Eurodollar mar­ payment of this external debt. Credi­ ious developing countries' debt prob­ kets to various countries such as Brazil tor banks successfully forced devel­ lems. Total developing country exter­ or Argentina would "float" according oping sector states to assume private nal debt grew by some 20% between to world interest rate fluctuations, sector debt responsibility in various 1985 and 1987. According to the usually pegged to the London Inter­ "restructurings." While immediate OECD, total external debt for all de­ bank Overnight Borrowing Rate (LI­ payment obligations were adjusted, the veloping countries was $997 billion in BOR). By 1982, the debt bubble burst, real debt burden soared, because of 1985, and $1 ,194 billion by the end of when Mexico announced to its credi­ the cumulative interest payments. last year. Indeed, since the explosion tor banks that it simply was unable to In 1980, total external long-term of the "debt bomb" in the summer of service its astronomical debt service debt (more than one year maturity) of 1982, their combined debt burden has obligations under the ever-changing some 109 developing countries, both increased by a staggering 50% ! "rules of the game." public and private debt, totaled $449 Especially since U.S. Federal Re­ This game of the floating interest billion. Since 1980, these countries serve chairman Paul V olcker in Oc­ rate debt is impossible for the debtor. have made impressive repayments to tober 1979 launched his credit con­ The more you pay, the more you owe, their foreign creditors . Repayment of tractionstrat egy, forcing market inter­ with the compound interest rates for­ interest due on some $449 billion from est rates above 20% for almost three mulas insisted on by the banks. All 1980-86 totaled $325.9 billion. Re­ years, the world has been hostage to "reschedulings" of debt for Mexico, payment on principalof this same debt usurious pressures which have con­ Brazil, and otherdebtor countries have totaled an additional $332.1 billion for tracted real economic investment and been accounting manipulations, whose the same six years. In total, the 109 favored creation of a paper financial intent has been to keep the book value developing debtors repaid $658 bil­ speculation bubble which only began of loans by the likes of Citibank and lion in principal and interest on their to burst on Oct. 19, 1987. Chase Manhattan still legally valid. initial 1980 debt of $449 billion. The "ThirdWorld debt crisis" grew "New loan agreements" are simply Despite repaying the original debt as a by-product of a decision of lead­ gimmicks by the banks to lend debtors plus an additional $109 billion by ing international financial circles money to repay the same banks an 1986, these 109 countries' total exter­ around the secretive Bilderberg Group, ever-increasing interest burden, often nal debt outstanding in 1986 was $882 during the 1970s, to detonate two with the funds never leaving New billion. Little wonder that Citibank and global "oil shocks" on the world econ­ York. It is similar to the formula im­ company have little desire to end their omy, raising the dollar-denominated posed on defeated Germany in 1919 debt games.

EIR September 16, 1988 Economics 17 Business Briefs

Narcotics Relief South. As he put it once, 'I will never be elected or re-elected by advocating giving Drugs, economic crisis P. R.C. appeals 5% more aid to the South. ' ". . . A major initiative to distressed on Non-Aligned agenda for disaster aid countries, whether it be for water manage­ ment or large projects, is totally out of the The global scourge of drug abuse and nar­ The People's Republic of China has issued question, in the prevailing view. There is cotics trafficking are among the top issues an appeal for international aid for three simply no political climate for any big en­ to be discussed by a Non-Aligned Move­ provinces hit hardest by floods, typhoons, terprise in the South." ment conference that opened in Cyprus Sept. and drought, the official Xinhua News 5. Senior officials started work on a draft Agency announced Sept. 3, according to a final document on economic problems that report in Stars and Stripes, the U.S. Army identifieddr ugs, debt, drought, hunger, and newspaper. The 'R ecovery' environmental deterioration as key prob­ A report released by the Chinese Min­ lems. Foreign ministers of Non-Aligned istry of Civil Affairs stated that severe states met Sept. 7. weather in Zhejiang, Heilongjiang, and Hu­ Record number in "Drug abuse and illicit trafficking are a bei provinces, has resulted in 500deaths and poverty in Houston scourge that seriously weakens the social nearly $2 billion in damages. fabric of nations, threatening their security The report said that more than 25 million The number of people living in poverty in and undermining their social, legal, eco­ people had been affected in some way, and Harris County (Houston) , Texas since 1980 nomic, and cultural structures," said the draft that "the Chinese authorities have taken var­ has increased at nearly twice the statewide document for the six-day conference. Del­ ious measures to help the disaster area .... rate , according to a study by the Texas De­ egates from the IOI-nation Non-Aligned Help fromforeign countriesand internation­ partment of Health and Human Services. Movement will consider a call for all states al organizations will be accepted." More than 480,000 Harris County resi­ to take concerted action to combat the prob­ The worst crisis, it said, is in the coastal dents, 16.56% of the county's population, lem of the consumption, production, and Zhejiang province, because of flood and lived below the federal poverty level of trafficking of narcotics. States were also drought conditions. $11 ,200 for a family of four in 1987. That urged in the draft to provide economic and represents an increase of 6. 18% since 1980, technical assistance to drug-producing compared to a statewide increase of 3.74%. countries to speed up the search for alterna­ The number of Texans living below the tive crops acceptable to farmers . The draft federal poverty level was estimated at 3.07 said many governmentswere unable to press Third World million, or 18.4%, at the end of 1987, a 1.03 aheadwith much-needed development proj­ million increase over 1980. ects because of the costs of fighting the 'People drop dead, Presidio County in West Texas had the "grievous problems" of drug abuse and traf­ state's highest poverty level, with 55. 11%. ficking. and no one cares' Dallas County had 13.9% in poverty; Bexar It also wants attention paid to the "grow­ County (San Antonio) had 22.01%; and ing and pernicious link between terrorist A close associate of former West German Travis County (Austin) had 18.05%. groups and drug trafficking ." Chancellor Helmut Schmidt at his Inter-Ac­ On other issues, the conference will fo­ tion Council of FormerWorld Leaders told cus on the acute economic crisis facing Af­ a journalist Sept. 6 that the consensus among rican countries weakened by debt, drought, Western elites is against any significant aid food shortages, and low commodity prices. programs to the developing sector, includ­ Food The draft conclusions for the conference ing to disaster-distressed countries like Su­ urged creditor countries and international dan and Bangladesh. Soviet Turkic regions banks to negotiate with debtor developing He said, "The South is not a priority , countries on measures to solve the debt cri­ people are much more worried about how sutTerworst shortages sis. The draft said the total external debt of the dollar is doing, taxes, the stock market. developing countries, many of which are In the American election, no one mentions The worst food shortages inside the Soviet Non-Aligned, stood at $1.2 trillion at the these problems . The Western view is that Union are occurring in the Turkic Central end of 1987, with an increasing number of the Third World is going down and down as Asian republics, where meat, dairy prod­ nations suspending interest payments. a priority . People are dropping dead, and no ucts, and sugar are nearly non-existent, ac­ One proposal before the conference was one cares. cording to reports from the Soviet Union. a call for the setting up of an emergency "Economic development of the South is In Central Asia, meat consumption is program of financial aid for nations chroni­ sliding down as a priority at a fantastic rate . officially reported at 40 kg per person per cally short of food. Schmidt is very cool to the problems of the year, or 2 Ibs. every nine days.

18 Economics EIR September 16, 1988 Briefly

• HEALTH INSURANCE pre­ The food crisis is also severe in the Tran­ skeptical and cautious, not the least because miums paid by federal workers and scaucasus, normally a food surplus region. of restrictions on Western companies' abil­ the U.S. government will jump an In Georgia, for example, meat, butter, and ities to repatriate profits from their Soviet average of 26% next year, and the sugarare strictlyration ed, and fruit and veg­ companies. cost of some popularhealth plans will etables are non-existent in the state shops. Meanwhile, leading West European go up 40% or more , according to the As elsewhere throughout the Soviet banks are planning the firstbank "joint ven­ federal government's Office of Per­ Union, fruits and vegetables are only avail­ ture" with Moscow, according to a report in sonnel Management. The " average able-at exorbitant prices-through pri­ the French daily Le Figaro of Sept. 5. The premium paid by non-Postal Service vate markets maintained by peasants. Western European banks Kreditanstalt of employees, now $58 a month, will A Sept. 1 Pravdaarticle on food ration­ Vienna, Credit Lyonnais of Paris, Banca increase to $73 a month. ing began by quoting a resident of the Ural Commerciale Italiana, and Kansallis-Osaka­ industrial city of Chelyabinsk denouncing Pankii of Helsinki will announce that before • UNCT AD has called on commer­ the private peasant markets-which ana­ the end of the year, they will join to form a cial banks to forgive at least 30% of lysts take as an omen of a coming "anti­ new bank with a Soviet director and 51% the debt of 15 heavily indebted de­ kulak" (rich peasant) campaign. control by Moscow. veloping nations. London's Finan­ "In the free market shops, they're selling The bank is to have an initial capitali­ cial Times immediately attacked the meat, poultry, milk, butter, as if it were in zation of I billion French francs ($160 mil­ proposal Aug. 31: "Whole debt for­ another country, while we-are we to be lion). An as-yet-unnamed West German giveness will weaken creditors' hold treated like animals? Because in Chely­ bank, British, and possibly Japanese banks over debtors. Once granted, debt re­ abinsk, all the [state] stores are empty ." are also to join the new consortium. lief cannot be ungranted. It therefore The Pravda article mentioned that meat Most Western banks already have a "joint marks a sharp break with the princi­ is now rationed in 26 regions of the Russian venture" partnership in Hungary , the Cen­ ple of conditionality, the foundation­ Republic, butter in 32 regions, and sugar in tral European International Bank, in which stone of the current approach." 53 regions. the Hungarian National Bank is the majority stockholder. • A RECORD grain harvest is re­ ported from West Germany, 27 mil­ lion tons, 13.8% higher than in 1987. East Germany, however, suffered a East-West Europ ean Community sharp drop in its harvest, 10% below last year. 'Joint ventures' Moot food trade • LONRHO CORP., run by called disappointing pact with Moscow gangster and British Crown agent Tiny Rowland, plans to buy Iran's A new Soviet analysis of "joint ventures" Henry Lord Plumb, president of the Euro­ sharein the German Friedrich Krupp with Western firms has found the results to pean Parliament, was to raise the possibility Corp. , at something between 0.7 and be very disappointing, according to a report of a Soviet-European Community agricul­ 1.4 billion deutschemarks. Iran has in London's Financial Times in early Sep­ tural trade pact, during three days of meet­ held 25% of Krupp since 1974, tember. The analysis was published in the ings in Moscow that began Sept. 6. LonRho a 50% share in Krupp Inter­ Communist Party journal Kommunist by I. According to a report in London's Daily national Trading Corp. since March Ivanov of the Foreign Economic Commis­ Telegraph, Plumb is heading the first top­ of this year. Involved in the transac­ sion of the Council of Ministers. level EuropeanCommunity delegation to the tion are two German banks, West Ivanov's report was apparently written Soviet Union since formal reiations between Landesbankand Dresdner. to persuade skeptical party leaders to make the Soviet bloc's Comecon and the EC were more concessions to Western firms engaged established in June. • UNION BANK of Switzerland is in joint ventures. It says that little has During this visit, Plumb will argue that closing its private client stock bro­ emerged from ongoing venture deals. such food trade cooperation could lead to a kerage affiliate in London. Accord­ Moscow plans 320 joint ventures over solution of many world food problems. He ing to the bank, the action is a result the next seven years , 140 of which involve was expected to tell his Soviet counterparts of low stock trading volumes since high technology. that a combination of EC and Soviet efforts "Black Monday," Oct. 19, 1987. Of existing such ventures, West Ger­ could help to reduce famine in many coun­ Senior London financial sources say many leads with 13, Finland has 9, and Italy tries, particularly in Central Africa. How the move is only the first indication 8. U.S. firms have only 7. was unclear. Given the Soviet food situa­ of large new layoffs to hit the Lon­ But, says Ivanov, the typical venture in­ tion, Moscow is only likely to be interested don, New York, and Tokyo financial vestment is tiny, most capitalized at under 5 in new shipments of food to Moscow, not centers . million rubles. Western partners are very Africa.

EIR September 16, 1988 Economics 19 TIillScience & Technology

X-ray laser: the full report of the GAO

Part 3 oj Charles B. Stevens 's report on recently declassified materials that reveal that EIR publicly, and Te ller et al. in secret reports, were right about the potential qfthisan ti-missile technology.

For years, the opponents of the Strategic Defense Initiative What the X-ray laser is have focused attacks on the X-ray laser and Dr. Edward A full descriptionof the X -ray laser appeared in EIR two Teller and other scientists' claims for that technology's anti­ weeks ago (No. 35). In principle, its workings are quite missile potential. During those years, Teller and others could simple. A primary H-bomb generates a burst of intense, barely defend themselves, because the facts about the system incoherent X-rays. If this intense X-ray output is properly was classified top secret. Then, in June 1988, the Govern­ tailored, then it will generate X-ray lasing action when inci­ ment Accounting Office issued a report, "Strategic Defense dent upon material containing the appropriate chemical ele­ Initiative Program: Accuracy of Statements Concerning ments. When a sufficientlyintense X-ray laser pulse hits the DOE's X-Ray Laser Research Program." Teller stood vin­ surface of a target, the interaction generates a highly focused dicated. particle beam which penetrates to the interior of the target, In this issue, EIR , unique among public sources in its destroying all electronic elements and circuits. projections for the X-ray laser since 1982, publishes the full It is clear in stark military terms that the X-ray laser and text of the GAO report. other directed-energy weapons represent a general transfor­ In the same period that the GAO report was issued, de­ mation in the meaning and performance of firepower. They classified versions of Dr. Teller's secret letters to various can kill a missile target when only a few joules per gram of governmentpolicymakers were released. Those letters were target is achieved, but in fact, �an generate pulses in excess published in EIR last week (No. 36), along with letters from of billions of joules. This provides an indication of the ulti­ former Lawrence Livermore National Laboratory scientist mate potential firepowerinvolved . They can kill billions of Roy Woodruff, seeming to dispute Teller's claim that "a warheads, in principle. single X -ray laser module the size of an executive desk which Based on experiments through 1984, Dr. Teller and his applied this technology could potentially shoot down the leading collaborators at LivermoreLaboratory had concluded entire Soviet land-based missile force." that it was possible to realize an X-ray laser which could Ironically, the letters from Woodruff, whose claims were develop virtually as many beams as desired, and fire each at seized upon by such sources as the Los Angeles Times to a separate target over thousands of miles. That is, a single claim that Teller and other Livermore scientists were over­ weapon could produce more than 100,000 separate beams stating the case for the technology and deliberately mislead­ and destroy all Soviet missiles, warheads, and decoys over ing the nation's top policymakers , actually support and ex­ several thousand miles. From a military standpoint, the X­ pand on the most crucial aspects of the projections made by ray laser would thus appear to fulfill President Reagan's Dr. Teller and EIR . This was also the conclusion arrived at objective of making ballistic missiles "impotent and obso­ by the Government Accounting Office, which undertook an lete." The GAO report that follows, confirmingthe accuracy investigation of the charges against Teller at the request of of this projection, has left the foes of SDI at long last speech­ anti-SDI congressmen. less.

20 Science & Technology EIR September 16, 1988 The GAO 's reportvind icates Te ller on the x-ray laser

Thefull text, including notes, of "Strategic Defense Initiative that LLNL scientists, Drs. Edward Teller and Lowell Wood, Program: Accuracy of Statements Concerning DOE's X-Ray had made "overly optimistic and technically incorrect state­ Laser Research Program, " issued June 30, 1988, as a United ments regarding this research to the Nation's highest policy States General Accounting Offi ce BriefingReport to the H on­ makers ." Mr. Woodruff also said that he was prevented by orable George E. Brown, Jr., House of Representatives. Dr. Batzel from sending correcting information to those who he believed had received inaccurate information about the X­ United States General Accounting Office ray laser. Furthermore, you told us that Mr. Woodruff indi­ National Security and International Affairs Division cated his resignation was prompted by what he felt were insupportable claims by Drs. Teller and Wood. June 30, 1988 At our request, Mr. Woodruff identified specific X-ray laser statements by Drs. Teller and Wood that he felt were The Honorable George E. Brown, Jr. "overly optimistic and technically incorrect." These state­ House of Representatives ments concerned the status and the potential of the X-ray laser as a military weapon and were contained in Dear Mr. Brown: -Dr. Teller's December 22, 1983, letter to George Key­ Your letter dated October 26, 1987, requested that we worth, I Science Adviser to the President; review certain allegations regarding the X-ray laser research . -Dr. Teller's December 28, 1984, letters to Ambassa­ program being carried out at the Lawrence Livermore Na­ dor Nitze, Chief Arms Control Negotiator, and Robert tional Laboratory (LLNL) as part of the Strategic Defense McFarlane, National Security Adviser to the President; and Initiative (SDI) program. LLNL is operated by the University -Dr. Wood's April 23, 1985, briefing to William Cas­ of Califomia under a contract with the Department of Energy ey, Director of the Central Intelligence Agency (CIA), and (DOE). Specifically, you were concerned with how the re­ Stanley Sporkin, CIA's General Counsel. sults of this program have been presented to the Congress, As agreed with your Office, we compared information administration officials, and the American public. about the X-ray laser program presented by Drs. Teller and The X-ray laser is important to the SDI program because Wood (categorized by Mr. Woodruff as the other LLNL the final SDI design could depend upon whether the X-ray channel) to congressional and administration officials with laser is feasible. If the Soviets could build an X-ray laser, the information presented to these same officials by LLNL then the survivability of American space assets could be X-ray laser program and LLNL management personnel (ca­ questioned. Therefore , the United States would have to de­ tegorized by Mr. Woodruff asthe official LLNL channel). sign its ballistic missile defense system to either survive or We provided a classifiedbriefing to you on the results of counter a Soviet X-ray laser attack. our review on February 25, 1988. This report is an unclassi­ According to your letter and discussions with you, the fied version of that briefing andtherefore includes general, basis for your concern was statements contained in corre­ rather than specific, information about the X-ray laser. spondence between Mr. Roy Woodruff, former LLNL As­ Brackets show where general information was substituted for sociate Director for Defense Systems, and the University of specific information that is classified. California concerning a grievance filed by Mr. Woodruff with the University on April 3, 1987. You said that this Summary of findings grievance alleged that reprisal action was taken by the then We found that the LLNL official channel, which included LLNL Director, Dr. Roger Batzel, against Mr. Woodruff Mr. Woodruff,2 had made statements about the status and following his resignation as Associate Director for Defense potential of the X-ray laser, which were similar to most of Systems. Contained in this correspondence were claims that the statements identified by Mr. Woodruff as being "overly technical information about the X -ray laser program had been optimistic and technically incorrect." misrepresented to the Administration. Mr. Woodruff said Mr. Woodruff prepared letters to send to Dr. Keyworth

EIR September 16, 1988 Science & Technology 21 and Ambassador Nitze clarifying the statements made by Dr. Teller. However, Dr. Batzel said that he preferred that Mr. Woodruff' s clarifying letters not be sent, and they were not. We found that Mr. Woodruff presented his opinions on in­ formation that had been provided by Dr. Teller to Dr. Key­ worth and Ambassador Nitze. Mr. Woodruff told us he did not have opportunities to present his views to Mr. McFarlane and Mr. Casey. In addition, we asked selected LLNL scientists, who had specific knowledge about the X-ray laser program, for their opinions as to the accuracy of the statements challenged by Mr. Woodruff. From these interviews, we concluded there was no general agreement among these scientists regarding the accuracy of the statements.

Proposed new LLNL policy on dissemination of views and opinions The LLNL Executive Officertold us that LLNL generally adheres to the University of California tradition of permitted Dr. Edward Teller. "Being a theoretical physicist, [he] fe lt the free and open expression of individual viewpoints to persons basic scientificquesti on, can an X -ray laser be demonstrated, had inside and outside LLNL. At the University of California's been answered." request, LLNL plans to issue a formal , written policy with respect to the dissemination of official management views and opinions, versus personal views and opinions, expressed implying a lesser understanding of X-ray laser physics.3 In by individual scientists outside of the laboratory. addition, he wanted to clearly state that many physics ques­ tions remain to be answered and that military application for Mr. Woodruff's objections to the X-ray laser has not been established. Dr. Teller's letter to Dr. Keyworth Concerningthe second statement, Mr. Woodruff wanted In his December 22, 1983, letter, Dr. Teller discussed to state that (1) the X-ray laser was not ready for engineering the status of the X-ray laser program. Mr. Woodrufffelt that at this time and (2) critical physics scaling and characteriza­ Dr. Teller's letter to Dr. George Keyworth contained "overly tion experiments needed to be carried out before the weapons optimistic, technically incorrect" statements and specifically feasibility of the concept could be assessed. Only then could objected to two of Dr. Teller's statements. These statements LLNL be ready for engineering. Dr. George Miller, the cur­ were that (1) three factors measured in a nuclear test were in rent LLNL Associate Director for Defense Systems, sup­ "essentially quantitative agreement" with predictions and (2) ported Mr. Woodruff's views and stated that the X-ray laser the X-ray laser program was, in his opinion, ready for engi­ was not ready for engineering then or now . neering. Mr. Woodruff wanted to send a letter to Dr. Key­ worth clarifying Dr. Teller's letter. However, Dr. Batzel said Dr. Batzel's reasons for not sending Mr. Woodruff'sclar­ that he preferred the clarifying letter not be sent, and it was ification letter: not. Dr. Batzel, then the LLNL Director, expressed the view According to Dr. Teller, the purpose of his letter to Dr. that Dr. Keyworth would not misinterpret Dr. Teller's letter. Keyworth was to inform him that LLNL had successfully Accordingly, as far as he was concerned, there was no need demonstrated X-ray lasing. In addition, Dr. Teller, being a for a clarification letter. Dr. Batzel told us that Dr. Keyworth theoretical physicist, felt the basic scientificquestion , can an is a knowledgeable physicist and had been briefed on the X­ X-ray laser be demonstrated, had been answered. Therefore , ray laser program. Furthermore, Dr. Batzel said he believed in his opinion, all that remained to be accomplished was Dr. Keyworth understood that Dr. Teller is a theoretical "engineering. " physicist and, like others, knew Dr. Teller to be a "technical optimist. " Mr. Woodruff's proposed clarification letter: In his unsent letter of December 28, 1983, Mr. Woodruff Mr. Woodruffdid communicate with Dr. Keyworth: said he wanted to "mitigate" what he felt were "premature Although Mr. Woodruff did not send his clarification conclusions" arrived at by Dr. Teller. Regarding the first letter, we found that he distributed a memorandum dated statement, he wanted to change the phrase from "essentially January 13, 1984, which described the X-ray laser program quantitative agreement" to "solid qualitative agreement," status. This memorandum was addressed to Dr. Keyworth as

22 Science & Technology EIR September 16, 1988 well as to various Department of Energy (DOE) and Depart­ additional [deleted] enhancement, giving risealtogether to a ment of Defense (DOD) officials. In this memorandum, Mr. seemingly impossible [Super-Excalibur] enhancement." (let­ Woodruffmade statements similar to some of Dr. Teller's ter to McFarlane) statements , which Mr. Woodruff had questioned. -"The overall military effectiveness of X -ray lasers . . . For two of the three factors cited by Dr. Teller as having may thus be as large as a [Super-Excalibur level of bright­ resultsthat were in "essentially quantitative agreement" with ness]. . . ." (letter to Nitze) predictions, Mr. Woodruff stated that the results were "in -The Super-Excalibur concept "seems likely to make excellent quantitative agreement with predictions." Regard­ X-ray lasers a really telling strategic defense technology. For ing the third factor, Mr. Woodruff stated that results "are in instance, a single X-ray laser module the size of an executive solid qualitative agreement with predictions. " He further stat­ desk which applied this technology could potentially shoot ed that there may ultimately be "sufficientquantitative agree­ down the entire· Soviet land-based missile force, if it were to ment" to achieve greater understanding of the laser physics be launched into the module's fieldof view." (letter to Nitze) and that more data and experimentation were needed before In his December 1984 letters, Dr. Teller primarily dis­ the feasibility or potential of an X-ray laser weapon could be cussed the new Super-Excalibur. At that time, Super-Excal­ determined. ibur existed primarily .as a theoretical concept. Experimen­ Finally, in addition to communicating his views in his tation had begun on components that could be used in Super­ January 13, 1984, memorandum, Mr. Woodruff met with Excalibur, but no nuclear tests of the concept had been per­ Dr. Keyworth on February 15, 1984. Mr. Woodruff told us formed. Shortly after Dr. Teller's December 1984 letters , the that, at this brief meeting, he presented the X-ray laser pro­ official LLNL channel, including Mr. Woodruff, included gram's status and clarifiedDr . Teller's letter. mention of the significantly higher Super-Excalibur bright­ ness goal in oral presentations and written materials about Opinions of selected LLNL scientists: the X-ray laser program. We asked selected LLNL scientists, who had specific knowledge about the X-ray laser program, for their opinions Mr. Woodruff's proposed clarification letter: as to the accuracy of Dr. Teller's statements. There was no To clarify Dr. Teller's December 28, 1984, letter, Mr. uniformity of opinion among the scientists who offered an Woodruff prepared a letter to Ambassador Nitze, dated Jan­ opinion regarding the accuracy of these statements. uary 31, 1985. However, Dr. Batzel preferred this letter not be sent, and it was not. In this letter, as the Associate Director Mr. Woodruff's objections to Dr. Teller's responsible for the X-ray laser program, Mr. Woodruff said letters to Ambassador Nitze he wanted to correct what he felt was the overly optimistic and Mr. McFarlane balance in Dr. Teller's letter and to present his views as to In his December 28, 1984, letters, Dr. Teller described both the status and potential of the X-ray laser as a military the potential of the X-ray laser. Mr. Woodruff regarded Dr. weapon. Teller's letters as being "overly optimistic." Mr. Woodruff Concerning Excalibur brightness, Mr. Woodruff stated told us the statements in this letters appeared to describe the that at the current fundinglevel , the Excalibur level of bright­ X-ray laser as almost a reality when, in fact, it was an evolv­ ness could not be achieved [in this century] . If additional ing concept and, at best, a paper weapon. These statements funding were provided (approximately $150 million per year concerned (1) the time frame for developing Excalibur and for the next [several] years), this goal could be achieved [in (2) certain statements about Super-Excalibur.4 the foreseeable future] . Beyond that, development of a full With regard to Excalibur, the specificcomment regarded X-ray laser weapon system would require an additional [de­ by Mr. Woodruff as being "overly optimistic" was the fol­ leted] years and several billion dollars. lowing. Concerning Super-Excalibur's brightness and the poten­ -"We expect to be able to realize this advance [Excali­ . tial for shooting down the entire Soviet land-based missile bur level of brightnessp in [the foreseeable future] ." (letter force, Mr. Woodruff stated they did "not have sufficient to Nitze) understanding nor data to be quantitative about the possibility With regard to Super-Excalibur, Mr. Woodruff objected of achieving these results." Furthermore, in his clarification to the following statements . letter, Mr. Woodruff stated, "Will we ever develop a weapon -"Assuming even moderate support, together with con­ close to the characteristics describedin the above quote?6 Not siderable luck, this [Super-Excalibur concept] might be ac­ impossible, but very unlikely." complished in principle [within a few years]." (letter to McFarlane) Dr. Batzel's reasons for not sending Mr. Woodruff'sclar­ -"While this progress has by now some solid experi­ ification letter: mental foundation, theoretical calculations indicate thatbeams According to Dr. Batzel, there was nothing in Dr. Teller's can be directed even more precisely giving rise locally to an letters that violated any laws of physics. In addition, Dr.

EIR September 16, 1988 Science & Technology 23 Teller identified the Super-Excalibur concept as "in princi­ er, then the X -ray Laser Program Leader, gave an X -ray laser ple," and the letters contained many qualifiers. presentation that included an estimated date for achieving the Dr. Batzel told us he had no problems with Mr. Wood­ Excalibur brightness goal of [deleted] . Mr. Woodruff attend­ ruff's comments concerning the X-ray laser. However, he ed this meeting. was concerned with Mr. Woodruff making budgetary com­ -At the February 17, 1983, presentation to the White ments and requesting specific funding from Ambassador House Science Council Technology Panel, the estimated date Nitze. He told us that the normal budgetary process is through had [slipped a few years] but was still within Dr. Teller's DOE and that this process should not be circumvented. He time frame. Mr. Woodruff and Dr. Weaver also attended this preferred this letter not be sent and that Mr. Woodruffmake meeting. his point in person to Ambassador Nitze. -On May 15, 1984, LLNL submitted a Program Plan for X-ray Laser Weapon Technology Development in Sup­ Mr. Woodruff's briefing to Ambassador Nitze: portof the Strategic Defense Initiative to the DOE Office of Mr. Woodruff briefed Ambassador Nitze for about 2 Military Application. This plan, that personnel at LLNL, Los hours on February 7, 1985. In this meeting, he said he talked Alamos National Laboratory, and Sandia National Labora­ about SDI, nuclear versus non-nuclear issues of interest with­ tory had prepared, indicated that the Excalibur brightness in SDI at that time, and the letter from Dr. Teller. According goal could be achieved [in the foreseeable future] . to Mr. Woodruff, he reviewed Dr. Teller's letter to Ambas­ sador Nitze in considerable detail and had ample opportunity Super-Excalibur brightness: to state his views. However, Mr. Woodruff told us he did not Shortly after Dr. Teller's December 1984 letters, the X­ leave written documentation with Ambassador Nitze. ray laser program officials and Mr. Woodruff began to men­ tion the significantly higher Super-Excalibur brightness goal Mr. Woodruffdid not contact Mr. McFarlane: in presentations and written materials. Mr. Woodruff's state­ Mr. Woodruff did not write a clarification letter to Mr. ments, made shortly after Dr. Teller's letters, are presented McFarlane. Since Dr. Batzel preferred he not write to Am­ below. bassador Nitze, he said he concluded the same would be true In a February 6, 1985, lettelr to the DOE Officeof Military for a letter to Mr. McFarlane. Application, Mr. Woodruffstated that Super-Excalibur had Mr. Woodruffdid not meet with Mr. McFarlane, but he been discussed within LLNL for quite some time. In addition, did meet with two National Security Council staffers on Feb­ he stated that although Super-Excalibur is conceptually much ruary 20, 1985. However, according to Mr. Woodruff, the simpler, the physics may prove to be more difficult. A few X-ray laser was not discussed at this meeting. days earlier, Mr. Woodruff had circulated an earlier version of this letter within LLNL. LLNL statements about the X-ray laser potential: In this earlier version, which was not distributed to DOE, We found the official LLNL channel, including Mr. Mr. Woodruff stated: Woodruff,made statements in oral presentations and written "Much work and many experiments need to be done materials about the potential of the X-ray laser program, before we will know if this idea [Super-Excalibur] is viable, which were similar to many of the statements made by Dr. and it is much too early to sell this as anything more than a Teller in his letters to Ambassador Nitze and Mr. McFarlane. concept. However, it is a very good idea, and we should and These statements generally supported achieving Excalibur will proceed to develop it as rapidly as possible." [in the foreseeable future] and discussed the possibility of In a February 13, 1985, presentation to the Senate SDI developing Super-Excalibur. We did not findany statements Working Group, Mr. Woodruff presented X-ray laser infor­ addressing when, specifically, Super-Excalibur might be mation. This presentation included the Super-Excalibur achieved. brightness goal, but did not include a specificdate for achiev­ ing this goal. Achieving Excalibur level of brightness [in the foresee­ We did not find estimates by the official LLNL channel able future]: that gave specificdates when the Super-Excalibur brightness The official LLNL channel, including Mr. Woodruff, had goal could be achieved. The official channel estimates con­ prepared estimates of when the Excalibur brightness goal tained dates for achieving the Excalibur brightness goal with could be reached. These estimates were based upon LLNL Super-Excalibur to follow. receiving budget and program support, which have never We asked selected LLNL scientists, who had specific materialized. However, they generally supported Dr. Tell­ knowledge about the X-ray laser program, for their opinions er's December 1984 statement of [in the foreseeable future] . as to the accuracy of Dr. Teller's statement about how soon For example the Super-Excaliburbrightness goal would be achieved. Most -At the June 23, 1982, presentation to the White House of the scientists who offered an opinion regarding the accu­ Science Council Military Technology Panel, Dr. Tom Weav- racy of the statements felt that achieving Super-Excalibur

24 Science & Technology EIR September 16, 1988 [within a few years] was conceivable or not impossible, es­ pecially if considerable support were available.

Super-Excalibur application: In his letter to Ambassador Nitze, Dr. Teller discussed the potential of a single X-ray laser destroying the entire Soviet land-based missile force. As this was a potential ap­ plication for a concept, which at that time existed primarily as a theoretical concept, we did not examine the official LLNL records for statements relating to this potential appli­ cation. However, during a hearing before the House Committee on Armed Services on February 19, 1986, Dr. Batzel was asked whether there was quantitative data to support this potential application. Dr. Batzel said "there are no data at this stage of the game which would support that." Concerning his testimony, Dr. Batzel told us that although there were no quantitative data to support Dr. Teller's executive desk con­ cept, tests had been conducted pertaining to certain aspects of Super-Excalibur. Dr. Batzel also said there were no data refuting Dr. Teller's concept.

Arms control negotiator Paul Nitze. Woodruffbrie fed him "in Mr. Woodruff's objections to ample detail" on his views on Dr. Teller's letter, but "did not Dr. Wood's briefing to CIA leave written documentation. " On April 23, 1985, Dr. Wood briefed William Casey, Director of the CIA, and Stanley Sporkin, CIA's General Counsel, on the X-ray laser research program. Copies of this Mr. Woodruff'scontacts with recipients of briefing: briefing were distributed to various DOE and DOD officials. Mr. Woodrufftold us he could not arrange a meeting to present his opinions and views to Director Casey. However, Mr. Woodruff's objections to certain statements: he did successfully present his views and opinions to most of In one part of his briefing, Dr. Wood stated the X-ray the other recipients of copies of this briefing. laser can have "as many as [specific number of] indepen­ dently aimable beams." In another part of his briefing, Dr. LLNL statements regarding Dr. Wood's CIA briefing: Wood presented five conditions that he stated had been ac­ In the case of the independently aimable beams of the complished by the X-ray laser nuclear tests. Mr. Woodruff Super-Excalibur concept, we found the officialLLNL chan­ objected to the statement concerningthe number of indepen­ nel made a statement that was similar to Dr. Wood's state­ dently aimable beams and to two of the fivestated conditions. ment in his briefingto the CIA. Wording similar to the phrase According to Mr. Woodruff, the statement concerning challenged by Mr. Woodruff, "as many as [specific number the number of independently aimable beams was an example of] independently aimable beams," was presented by Dr. of Dr. Wood "selling Super-Excalibur." He also felt that Dr. George Miller (then Mr. Woodruff's deputy and eventual Wood's use of artist's drawings depicting possible X-ray successor) to the DOE Office of Military Application in early laser usage implied an unwarranted reliability to something April 1985. that did not exist other than as a theoretical calculation. Concerning laser energy achieved and intrinsic energy With regard to the two of the five conditions that Dr. conversion efficiency, we found that Dr. Wood's April 1985 Wood stated LLNL nuclear tests had achieved, Mr. Wood­ CIA briefingwas based upon nuclear testresults, which LLNL ruff stated (1) LLNL had not produced the amount of laser later found to be incorrect, and, as a result, it was subsequent­ energy claimed by Dr. Wood and (2) the usage of the term ly modified in the summer of 1985. Based upon the uncor­ intrinsic energy conversion efficiency was inappropriate and rected results, we were told by Dr. Weaver, then the X-ray he believed this specific level of efficiency had not been Laser Program Leader, that LLNL thought it had achieved achieved. According to Mr. Woodruff, intrinsic energy con­ the energy level out of the laser and the intrinsic energy version efficiency refers to the efficiency of a single laser conversion efficiency as stated by Dr. Wood. beam, not the overall efficiencyof a possible weapon config­ We asked selected LLNL scientists, who had specific uration. Therefore , achieving this goal did not mean that a knowledge about the X-ray laser program, for their opinions laser weapon was possible. concerning the accuracy of the above statements. There was

EIR September 16, 1988 Science & Technology 25 ary" technological approaches. These administration offi­ cials felt they had not been misled. Dr. Dacey further stated that Mr. Woodruff had access to administration officials, at least verbally, and concluded that Dr. Batzel's request that Mr. Woodruff not put his counter­ vailing opinions in writing was within Dr. Batzel's manage­ ment scope as Laboratory Director. He also stated that in retrospect the record would have been more complete if Mr. Woodruff's views had been more extensively documented. We discussed the results of our review with Mr. Wood­ ruff; LLNL officials (including Dr. Roger Batzel, Dr. Ed­ ward Teller, Dr. Lowell Wood, and the new LLNL Director, Dr. John Nuckolls); and DOE officials. They all generally concurred with the information in this report. Unless you publicly announce its contents earlier, we plan no further distribution of this report until 30 days after its issue date. At that time, we will send copies to the Chair­ man, Committee on Armed Services, House of Representa­ tives; the Secretaries of Defense and Energy; the Director of the Strategic Defense Initiative Organization; and other in­ terested parties upon request.

Sincerely yours, Frank C. Conahan Assistant Comptroller General

Appendix I: objectives, scope, and methodology Dr. Lowell Wood. Most scientists who knew about the X-ray laser program,felt that his "level of energy achieved statement was Based upon your request, as subsequently modified by technically correct." discussions with your Office, we compared information about the X-ray laser program presented by Drs. Teller and Wood (categorized by Mr. Woodruff as the other LLNL channel) no uniformity of opinion; however, most of these scientists to congressional and administration officials with the infor­ felt the level of energy achieved statement was technically mation presented to these same officialsby LLNL X-ray laser correct, based upon (1) uncorrected test results and (2) mea­ program and LLNL management personnel (categorized by suring the energy at the laser rather than at the target. In Mr. Woodruffas the official LLNL channel). As agreed, we addition, most of these same scientists also felt the conver­ did hot examine Mr. Woodruff' s grievance with the Univer­ sion efficiency statement was also technically correct. How­ sity of California. ever, some of these scientists fe lt that Dr. Wood's statements We accepted the information presented by the official could be misunderstood. LLNL channel, without additional verification, as the stan­ dard or basis of comparison. We did not (1) determine wheth­ DOE's investigation er the information presented by either channel was correct or DOE tasked Drs. Dacey7 and FosterS to investigate Mr. incorrect, (2) systematically examine information presented Woodruff' s allegations. Their reports were issued to DOE in by either channel to the general public, and (3) attempt to April and May 1987, respectively. establish what was specifically presented orally by either In summary , they found that Drs. Tellerand Wood were channel. We relied on written documentation to the maxi­ optimistic about the potential of the X-ray laser. They con­ mum extent possible. cluded that the views of Drs . Teller and Wood were presented At our request, Mr. Woodruff identified specific X-ray as views of individual scientists and not represented as the laser statements by Drs . Teller and Wood that he felt were official position of LLNL. "overly optimistic and technically incorrect." These state­ In addition, Dr. Foster noted that the administration of­ ments concerned the status and the potential of the X-ray ficials who received these presentations (General Abraham­ laser as a military weapon and were contained in son, Dr. Keyworth, Mr. McFarlane, Ambassador Nitze, and -Dr. Teller's December 22, 1983, letter to George Key­ Mr. Poindexter) felt the presentations were no different than worth, Science Adviser to the President; presentations provided by other experts advocating "vision- -Dr. Teller's December 28, 1984, letters to Ambassa-

26 Science & Technology EIR September 16, 1988 dor Nitze, Chief Arms Control Negotiator, and Robert McFarlane, National Security Adviser to the President; and -Dr. Wood's April 23, 1985, briefing to William Cas­ ey, Director of the CIA, and Stanley Sporkin, CIA's General Counsel. We reviewed LLNL records and files, dating from early 1981 through December 1987, to identify pertinent state­ ments by either channel pertaining to these identified state­ ments. In addition, LLNL scientists identified documents Call for Investigation: containing pertinent statements for our review. We also used data obtained in our prior review of the X-ray laser program. 9 Was there sabotage Our audit was performed at LLNL and the DOE Headquar­ ters . at Ramstein? We interviewed various LLNL scientists concerning the accuracy of Mr. Woodruff' s allegations. We contacted The Schiller Institute issued the fo llowing "Call fo r an -all the principals named in Mr. Woodruff's allega­ exhaustive investigation into the possibilityof sabotage tions, in NA TO military aircraft crashes" on Sept. 8, fo llow­ -the current and prior X-Ray Laser Program Leaders, ing the disaster Aug. 28 at the Ramstein Air Show in and Ramstein, West Germany, in which three planes of the -other individuals identified as possessing key infor­ Italian "Frecce Tricolori" acrobatic team crashed, mation, including persons named by Mr. Woodruff and Dr. killing the pilots and 50 civilians. Endorsements may Wood who could support their views. be sent to the Schiller Institute, P.O. Box 66082 , Wash­ Our review was conducted from November 1987 through ington, D.C. 20035-6082 , or in Europe, to EIR June 1988 in accordance with generally accepted government Nachrichtenagentur GmbH., Postfach 2308, Dotzhei­ auditing standards. merstr. 166, 62 Wiesbaden, B.R.D.

Notes Since early 1988, an alarming and unprecedented num­ I. Dr. George A. Keyworth (PhD in Physics) was the Physics Division ber of NATO military aircraft have crashed in Western Leader at Los Alamos National Laboratory before becoming the Science Europe, above all in West Germany. With the tragedy Adviser to the President. 2. Mr. Woodruff was the LLNL Associate Director for Nuclear Design at the Ramstein air base, this series of crashes reached from 1980 until February 1984. At that time, he became the Associate a high point. Since then, more military aircraft have Director for Defense Systems, a position he held until resigning in October crashed. 1985. 3. Based on their understanding of the physics of an X -ray laser, LLNL More and more experts doubt that the cause of these scientists developed computer models, which were used with other means NATO air accidents has really been pilot error or me­ to predict the results of underground tests. If the results of an underground chanical failure. Since Ramstein, the question of sab­ test agreed with the prediction, LLNL scientists concluded that they gener­ ally understood the physics of how the aspect being measured worked. If otage is being posed with even greater urgency. there were significant differences, this meant that the physics were not well There is a wide array of possible sabotage methods , understood. In general, quantitative means that the results were "close" to emphatically including sabotage through electro-mag­ the predictions , and qualitative means the results were "not as close." We did not find any agreement on what specific numbers (such as 80% agree­ netically induced effects on the pilot and/or on the ment) determine when the results should be described as quantitative or aircraft's electronics. qualitative. The psychological-political and strategic useful­ 4. The initial LLNL X-ray laser design concept was referred to as Excalibur and had an established brightness (power intensity) goal . Theoretical cal­ ness of the crashes of NATO military aircraft for the culations on a different idea evolved into the Super-Excalibur concept in Soviet leadership is obvious. After NATO's interme­ early to mid- 1984, which had a brightness goal significantly higher than diate range nuclear weapons systems, NATO's tactical Excalibur. 5. The amount of power that can be delivered (per unit solid angle) by a air forces are the primary target of Soviet-influenced directed-energy weapon. Brightness of the laser beam can be measured political campaigns. either at the laser device (source) or at the target, where the brightness would In light of this, we the undersigned demand an be less than at the source due to the source-target separation. 6. Mr. Woodruff was referring to Dr. Teller's quote about a single X-ray immediate exhaustive investigation into the series of laser module potentially shooting down the entire Soviet land-based missile NATO military aircraftcrash es, with respect to possi­ force. ble sabotage operations. We demand that aircraft and 7. Dr. George C. Dacey (PhD in Physics) was President of Sandia National Laboratories. pilots be effectivelyprotected against electro-magnetic 8. Dr.John S. Foster, Jr. (PhD in Physics) helpedform LLNL in 1952, was signal interference. Furthermore, we demand that the Director of LLNL from 1961 to 1965 , and was Director of Defense Research relevant information obtained from such investigations and Engineering in the Department of Defense from 1965 to 1973. 9. SDI Program: Evaluation 0/ DOE's Answers to Questions on X-Ray be made available to the public. Laser Experiment (GAO/NSIAD-86-140BR) .

EIR September 16, 1988 Science & Technology 27 TIillFeature

LaRouches in Asia: Combat instability by development

by Sophie Thnapuraand Linda de Hoyos

For over two weeks, from late August to early September, American political leader Lyndon LaRouche and his wife Helga Zepp-LaRouche, chairman of the European Labor Party of West Germany, visited the Asian nations of Thailand, Japan, and the Republic of China (Taiwan). In numerous private meetings, semi­ nars, and receptions with the leading policymakers of these countries, the message the LaRouches brought stood in stark contrast to the intense political and economic warfarebeing waged against Asia from Washington, Moscow, and Beijing. "The great problem that all our nations face is that we are suffering a great moral and intellectual decadence," American political leader Lyndon LaRouche told an audience of legislators in Taipei, Taiwan, Sept. 4. "Our nations are much, much worse today than they were 25 years ago. To me, the solution is partly obvious. Here in this room are people who represent one-quarter of the human race. We in the U. S., and we who are patriots in Western Europe have the same interests as China. It is my persuasion that we must unite our efforts so as to return to the offensive. Like the great Dr. Sun Yat-sen, we must agree among ourselves on principles which are common to all nations: the principle of the sovereign nation-state, the right of all nations to scientific and economic progress, the right of every human being to have a form of government which speaks his language, in which he can participate through representative institutionsso that the individual can see his short life as not so short because it is somethingembodied in the nation, seeing the nation as a personality which is contributing to life on this planet and contributing to the exploration of space and the universe." Creating an alternative body of patriotic leadership is the task at hand if humanity is to solve the dire crises it faces today, LaRouche told the patriots with whom he met. Asia, today, LaRouche said, is a "zone of acute destabilization." In the month of August, the region stretching from Afghanistan to Japan began to resemble another "arc of crisis." In Pakistan, President Zia ul-Haq was assassinat­ ed on Aug. 17, along with top leaders of the Pakistani military. In Burma, British and State Department-backed operatives have orchestrated an upsurge against the Ne Win government, plunging that nation into chaos. In South Korea, the govern-

28 Feature EIR September 16, 1988 U.S.S.R.

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ment is bracing for the possibility of North Korean-sponsored States on the project. During this visit to Japan, the La­ terrorism against the Olympics. Rouches met with military strategists and also scientists; As LaRouche explained in Taiwan , the destabilization including broad-ranging discussions at the Tokai Space Re­ seen throughout Asia is the product of a deal struck between search Center and the Global Environmental Monitoring Sys­ the Soviet Union and the oligarchical factions of the West for tem Center. a "global empire" of "power-sharing" with Moscow. "The It is the LaRouches' first trip to Taiwan . trend now is to establish that empire . Most of the strange things that happen in the world are the result of talks among Thailand the key to Asia four cities: Moscow, London, New York, and Beijing," In Thailand, the key issue of concernto the policy makers LaRouche said. and military leaders that the LaRouches met with was Burma. For many of the leading patriots in Asia, LaRouche rep­ There is fear that what is going on in Burma-riots , blood­ resents an alternativepolicy- leadership for the United States. shed, civil war-could spill over into the neighboring coun­ Mr. LaRouche has been several times to Thailand and Japan. tries and destabilization could spread like wildfire in the In Thailand, his name is associated with the reviving of the region. Gen. Sein Lwin, who took over from Gen . Ne Win, Kra Canal great project, which would construct a canal through used his habitual iron hand methods to quash street riots southern Thailand that would speed Indian-Pacific Ocean backed by religious groups but failed to last more than 19 traffic and create a nexus of industrialization that would ra­ days. Since Aug. 24, President Maung Maung, a civilian diate throughout Southeast Asia. LaRouche's friends in Thai­ member of the Burma Socialist Program Party (BSPP) , took land have organized several conferences on the canal since over and street riots are still continuing, this time calling for 1983, and the project has been given approval by the Thai the end of the rule by the BSPP in Burma. Without a govern­ Parliament. ment capable of restoring law and order, the country, which In Japan, LaRouche is best known for his role in the already had difficultiesmaintaining its unity as a nation under development of the U.S. Strategic Defense Initiative, and for the 26-year-rule of Gen . Ne Win, is plunging into further his aid in bringing Japan into partnership with the United chaos.

EIR September 16, 1988 Feature 29 Vietnamese tactic is to attempt to create a rift between Thai Foreign Minister Air Chief Marshal Siddhi Savetsila and Prime Minister Gen. Chatichai Choonhavan. For its own security concernswi th the Soviet Union, Vietnam would like to be able to settle with the People's Republic of China. The Thais, on the other hand, would like to see first a settlement of the problem of the occupation of Kampuchea by Vietnam­ ese forces. However, Mr. LaRouche remarked that the Viet­ namese feel that the west bank of the Mekong River de facto belongs to them. It is very similar to the Israeli attitude toward the West Bank of the Jordan River, which they consider theirs since many Jews have been moved to live there . Thailand, therefore , is the key stabilizing factor in South­ east Asia. Its survival as a nation can make or break the region. It ranks among the top ten as a food-producing and food-exporting country . It is the only country that has re­ mained independent while others fell into colonial hands. The country has been led and kept intact by a number of great leaders in history, the most significant ones being King Rama IV (King Mongkut) and King Rama V (King Chulalong­ korn);both of whom reigned at the end of the 19th c:!ntury . In fact, King Mongkut was a great admirer of the American System. Unfortunately, U.S. foreign policy today indicates that "the U.S. has written offThail and since 1978," commented Chou Kao-Ching, the German-trained "Greenie" of the DPP, in a senior Thai official to Mr. LaRouche. To be able to guar­ action. antee its continued stability which is being threatened on all sides, "Thailand needs to develop more and faster," Mr. LaRouche recommended to his Thai interlocutors who were Mr. LaRouche commented to several of his interlocutors concerned about national security. that "a bad government is better than a state of anarchy ." The The key to the problem of development in Southeast Asia, present crisis in Burma must be seen in the context of a three­ LaRouche stressed, is to understand that it is a water �ea, a way deal between Moscow-London/Washington, Moscow­ maritime area, an area best suited for ocean agriculture-a Beijing, and Beijing-Washington. The aim is to recarve conclusion underlined by the ratio of land to water in the Southeast Asia into new spheres of influence and for that area. It is an area where it is cheap to move freight by water, purpose, the destabilization of Southeast Asia as a whole which means that the development of an infrastructure proj ­ would serve to reshuffle the cards among the New Yalta ect, such as the SongkhlaiKra Canal across the Isthmus of partners . Those forces that are active factors in the destabil­ Thailand, thus linking the Indian and Pacific Ocean Basins, ization scenarios in the region are the Soviets, directly and would significantly enhance not only Thailand's, but the indirectly through the World Council of Churches, and those whole region's, economic potential . U.S. elements involved in Project Democracy that have al­ LaRouche continued, "Don't look at the poverty. Look ready had more than their hands full in the Philippines, South at how to transform a poor area into a rich one. It should be Korea, Indonesia, Singapore , and Malaysia, LaRouche said. easy to quickly double the income of the average poor be­ In Thailand, the Project Democracy elements operate cause it is already so low . Just a little more water, a little with the aim of toppling the monarchy, a national institution more fertilizer and a little more mechanization would do it." that is essential to the political stability of the nation. Mr. LaRouche continued, "We have to think of the develop­ LaRouche warned that in addition to the problem of Indo­ ment of the SongkhlaiKra Canal and a deep seaport as a chinese refugees on the Thai-Laotian, Thai-Kampuchean national security question . The entire project should be de­ border, a similar refugee problem could come into existence veloped from the standpoint of the national sovereignty of on the Thai-Burmese border, pressuring Thailand on an ad­ Thailand and not dictated by the international financial insti­ ditional front . tutions as the International Monetary Fund and the World Another area of concern among Thais is the continuing Bank." Kampuchean conflict. Commenting on the recent visit of Vietnamese Foreign Minister Nguyen Co Thach to Thailand, Taiwan: betrayal by the United States a Thai senior official pointed out to Mr. LaRouche that the The high point of the LaRouches' visit to Taiwan was

30 Feature EIR September 16, 1988 their participation in a meeting of members of the Legislative In her speech, Helga Zepp-LaRouchewarned the assem­ Yuan (Parliament) and the National Assembly, which func­ bled parliamentarians, journalists, and military and business tions as the electoral college, constitutional assembly, and leaders, of the dangers represented by the pro-Greenie op­ impeachment court of the Republic of China on Taiwan, held position Democratic Party , noting that when she heard that in Taipei Sept. 4. The meeting, which was sponsored by the the party's leader Chou Kao-ching had been trained in Hei­ Flag of China Monthly, was addressed by both LaRouches. delberg , West Germany, she knew that the Republic of China

Documentation

combination of forces which is capable of responding to the 'Development is crisis, as it becomes worse, with the hope that we can change the direction in which the U. S. makes policy to solve this necessaryto security' crisis. On my policy as such, I've been committed for many In Bangkok, Thailand, and Taipei, Taiwan, LaRouche was years to the establishment of a new world monetary system. constantly asked how U.S. policy toward its allies could be During the last war, when I was in Burma and India, at the changed. Excerpted below is a sp eech delivered by LaRouche end, we Americans-and there were many of us-recog­ Aug. 31, before a dinner-reception in Bangkok, giving the nized, looking at the world as we saw it outside the U. S. , American leader's views on the reshaping of the fu ndamen­ that the conditions that we saw in the world outside the U.S. tals of U.S. fo reign policy: were the cause for the possibility of wars like that we were going through. We recognized that the development of what If the U.S. and otherdominant nations continue to respond we call today "the developing nations" was indispensable to to the events that are developing in the way they have been having a planet in which peace and security are possible. responding, then all of civilization will probably be plunged We went back at the end of the war, and I looked at my into a new Dark Age beginning the years just ahead of us. friends who I had been overseas with and they were all going Next year, for example, we'll have the biggest financial in different directions. They were all concernedwith making crisis in world history. There'll be a collapse of between $15 money, success and so forth . They had forgotten the impor­ and $20 trillion in paper values in a financial collapse which tance of the war. will occur either before or soon afterthe U. S. elections within I've been committed to that policy, however, for most of a matter of weeks or months. If we continue with the present my life and have been actively involved the past 20-odd monetary policy of the International Monetary Fund, the years. We must have two problems solved at this time. First, World Bank and similar kinds of policies, we will go into the we require a new monetary system, a monetary system which deepest economic depression in world history. in my view must be based on the ideas that are associated Previously, we've had crises like these in various parts with what used to be called the American System of political of the world, as in Europe in the 14th century. We have economy. The ideas of U. S. Treasury Secretary Alexander never, to our knowledge, except possibly at about 1000 B.C. , Hamilton, Germany's Friedrich List, and the two Careys had a crisis which seemed to affect the world as a whole [Mathew and Henry] and others. simultaneously. A society based on development of infrastructure, the So the problem is to change the policymaking struc­ right of nations to protect their trade, to protect their internal ture ....We have a monster in the United States, one leg is industry and agriculture, the promotion of scientificand tech­ called the Bush campaign, the other leg is called the Dukakis nological progress-cooperation on that basis-the creation campaign. Being a man of limited resources, I'm going to of a community of principle among sovereign nation-states cut off the Dukakis leg to topple the monster. This will be which share in these ideas for mutual protection and mutual understood by some people wrongly as in support of Bush. assistance, and a monetary system which can guarantee credit I'm not supporting George Bush ....However , if Dukakis for exchange of technology among nations at fair prices and were to become President, I would see no hope for changing low borrowing costs for lines of credit. If we do that, we can the direction of policy. bring about, I believe, a system of equity on this planet. We If Bush becomes President, afterwe 've toppled Dukakis, can provide justice for all peoples; we can eliminate the great then some of my friends might be able to exert enough influ­ crime that plagues this nation up to this time. ence on the U. S. governmentin shaping policy. So we might The second policy I am committed to for moral reasons survive .... Therefore, my responsibility is to influence as well as practical ones: that the government of the U.S. what does rule in the United States, which is not the President commit itself immediately to the permanent colonization of of the United States. As an economist, we have to create a Mars within about 10 years from now.

EIR September 16, 1988 Feature 31 University, for example, noted that the economic warfare \ being waged against Singapore. Malaysia, and the Republic J •••••• <; l ... � of China from Washington was a joint project of the State " \. •• \ f' Department and "international communists," the purpose of �...... \, ...... which is "to use economic pressure and trade to threaten the ( .. ... ".\ EA ST developedand undeveloped countries and target them to con­ ') f CHINA trol them." In the case of Taiwan, economic warfare is being . SEA directed against an "economic miracle that has shocked the ( world." '; .. / .. The theme of State Department betrayal of the Republic P�OPLE'S REPUBLIC of China was sounded by each speaker. However, there was ( OF CHINA a clear distinction drawn by ·the participants between the , I �\i I United States and the currentleadership in Washington. The " I Cb'\ .... -: ..... � ... �O ...... 1. .. �. States you have to distinguish between the State Department .' \, \ oQ!- � Quemoy � and the people of the U.S.A. There is a sickness in the State \ .. Island # i> Department, expressed in picking on the weak and the poor .� but fearing the strong. When the P.R.C. told the U.S.A., � "You are a paper tiger,' there was no reaction [from Wash­ ington] . The U.S. retreated and left the way open to the P.R.C. . ..We want to be friends of the United States, but SOUTH CHINA SEA at a distance, so we can defend ourselves." Economically, the speaker noted, this meant focusing Taiwan economic policy more upon the methods of technology transfer, rather than access to U.S. markets. was being targeted by the same anti-Western operations that In answering the statements put to him, LaRouche as­ operate against Germany. serted that the world stands before a monumental crisis, in­ "Despite differences of culture," Zepp-LaRouche said, cluding the danger of worldwide famine, caused by the evil "there are obvious parallels between the Federal Republic of policies perpetrated by Western oligarchs and their partners Germany and the Republic of China. By the end of World in Moscow. As he had discussed with Taiwan's leaders, War II, Germany was divided into two parts by the Yalta LaRouche said, humanity is now engaged in a war, not the agreement created by the same U. S.-United Kingdom-Soviet "usual type of war," but "irregular war." The inside of the forces who were responsible for the defeat of the Kuomintang mind of every person on this planet is a battlefieldof this war, on the Chinese mainland." LaRouche said. Every village is a battlefield. Every stratum After tracing through the assault against the Federal Re­ of society is a battlefield. It is a struggle to see who will shape public's national sovereignty over the second half of this the will of the human race. century, she explained how the Green Party and the environ­ LaRouche stated that he was "very unhappy" about his mentalist movement were born out of the Club of Rome's country, but "proud of its existence. Our nation was founded promotion of malthusianism against the underdeveloped na­ with the mission of benefittingall humanity. Many struggles tions. The Club of Rome's aim, she said, "was primarily to for the liberty of nations were based on the model of the set up a world dictatorship based on the rule of the superpow­ American Revolution." ers using supranational institutions ....In the mid-seven­ The "optimistic side" of the current crisis, LaRouche ties, this Greenie movement became a pacifist movement said, "is that the agencies that have steered us into this crisis which is anti-NATO and anti-Western. In the last ten years, will be discredited by the crisis. We will win therefore if we they have succeeded in destroying [the view of] Moscow as have an organization among the nations of the world as an the enemy image ." alternative leadership, that is seen by masses of people as an The parallel was clear to the audience. The DDP in Tai­ alternative leadership." What is required, LaRouche con­ wan has forced the halting of the nation's nuclear power cluded, is a unified force among nations, with each member program, the most successful in the world, and is working to a patriot of his own nation and also a world citizen. "We must open up Taiwan to penetration from both Moscow and Beij­ mobilize people to see that the suffering or advantage of a ing. friendly nation touches their own self-interest. We shall win The questions that followed sounded the warningsof the if we fightfor each other. This requires the kind of courage communist penetration of the United States, and the U.S. 's we think of in warfare. If we are prepared to sacrifice our betrayal of its allies. An economist in the National Taiwan lives for each other's nation, then we shall win."

32 Feature EIR September 16, 1988 Across the Fo rmosa Straits , thirty years after Quemoy-Matsu by Webster G. Tarpley

The month of August marks the 30th anniversary of the truce line in Korea and the Westernzones of Berlin, thefront beginning of the Aug. 23, 1958 Chinese Communist attempt lines of the Cold War confrontation of the free world with the to seize control of the offshore islands, Quemoy and Matsu, Sino-Soviet bloc. The defense of these islands was one of the with massive artillery and air bombardments in preparation main issues in the 1960 Kennedy-Nixon presidential debates. for an amphibious assault. As any American schoolboy in Today, the offshore islands remain fortified but peaceful, the late 1950s knew , Quemoy and Matsu are two small is­ with a civilian economy that has revived after decades of lands a few kilometers off the Chinese mainland coast which living the life of a garrison under siege. But observers in the had remained under the control of Nationalist Generalissimo Republic of China on Taiwan point out that Beijing has often Chiang Kai-shek's Kuomintang (KMT) government when reiterated, and never renounced, its threat to attack Taiwan the KMT was forced to transfer its capital to Taiwan (For­ and reunify China by force under Communist rule. The Tai­ mosa) in 1949, following the victory of the Maoist armies in wan government is thus still in a state of warwith Beijing. China's civil war. The Chinese Communists sought to seize Beijing recently staged a large-scale, live-fire mock in­ these islands in preparation for a general assault on Taiwan, vasion of its Hainan Island. Missiles have been fired off which is separated from the mainland by 100 miles of the Chekiang. In March, 3,000 Red trawlers massed in the Min Formosa Straits. River opposite Matsu. Mainland trawlers frequently violate The Communist attempt to grab the offshoreislands came territorial waters of the Republic of China (R.O.C.). Some just five years after the Korean armistice of July 1953. As have been found carrying weapons. U.S. Gen. Douglas MacArthur had predicted, the Beijing Thirty years after the battles around the offshore islands, regime was made more aggressive by U.S. and British ap­ a lively debate has broken out in the R.O.C. concerning the peasement. The intensive phase of the Battle of Quemoy likely shape of future relations with the mainland regime. (known as Kinmen in Mandarin Chinese) lasted from Aug. This debate has been accelerated by the fact that the R.O.C. 23, 1958 to Jan. 7, 1959, although Communist shelling of itself is in a period of rapid change, with a new President the islands went on for years after that. During the main (Lee Teng-hui, who replacedthe late President ChiangChing­ battle, the Communist People's Liberation Army tried to kuo, the son of the late Generalissimo, back in January) and flattenthe Nationalist fortificationson the islands to open the the XIII PartyCongress of the ruling Kuomintang, which has way for assault landings, while also seeking to cut off sup­ led to numerous changes in the key Central Standing Com­ plies to the Nationalist garrisons. Quemoy, the largest of the mittee and other party organs. There is now ferment in the offshore islands, is located in a bay, surrounded on three R.O.C. about the possibility of increased visits and ex­ sides by mainland gun positions. During more than four changes with the mainland, including the possibility of direct months of battle, the Communist Chinese troops fired some merchandise trade , which has been ruled out by the KMT 600,000 shells at Quemoy, causing 800 casualties and de­ since 1949. In practice, R.O.C.-mainland trade has become stroying almost 10,000 buildings and dwellings. There were large and has been routed through Hong Kong. several Red landing attempts. The Nationalists countered by KMT policy toward the mainland remains tied to the denying the Communists sea and air supremacy, shooting "three no" policy, which stipulates no contact, no negotia­ down 30 MiGs, destroying 97 fortified gun emplacements, tion, and no compromise with Beijing. For years, the R.O.C. and sinking 27 Red naval vessels, thus preventing the Com­ upheld its own Chinese version ofthe postwar Bonn Hallstein munists from massing for an effective amphibious assault. Doctrine(A lleinvertretung) by claiming to be the sole Chinese Quemoy and Matsu were, along with the 38th parallel nation. Beijing for its part has answered with its "four cardi-

EIR September 16, 1988 Feature 33 nal principles" or non-negotiable demands of taking the so­ nese) that have usurped power in Taipei. cialist road, the dictatorship of the proletariat, the leadership Accordingto theNYU professor, Deng has secretly turned of the Communist Party, and Marxist-Leninist-Maoist against communism, which he sees to be inherently unwork­ thought. able and a failure, although he dare not acknowledge this Althought the KMT has remained locked in its "three no" view in public. To hear it from theprof essor, Deng is deter­ position despite obvious contact and some de facto negotia­ mined above all else to prevent a renewed domination of the tion, Beijing has introduced some variations into its own Beijing regime by Mao Zedong thought. theme . In 1981, Beijing's Yeh Chien-ying offered a nine­ As a consequence of this sip.gular state of mind on the point peace package that was supposed to lead to a united part of Deng, Professor Hsiung further expounded, the par­ front of Beijing and Taipei. More recently, Beijing's "para­ amount leader is now ready to be very flexible to prevent . mount leader," Deng Xiaoping, has been promoting the slo­ Taiwan from taking the path of breakaway independence . gan of "one country, two systems"to raise the issue of Chinese According to Hsiung's report, Deng is now ready to declare reunification, although clearly under Beijing domination. peaceful coexistence with the R.O.C. in the interim between "One country, two systems" reflects the Beijing policy to­ now and a pending reunification, ofBeijing and Taipei. The wards the British Crown Colony of Hong Kong, which is mainland might even form a coalition government with the scheduled to be annexed by Beijing in 1997. Deng has pledged KMT, and offer the KMT a consulting role in drafting a new to allow the economic system presently extant in Hong Kong, constitution for China. That constitution need not include the defined as capitalism, to remain in force for at least 50 years. four cardinal principles enumerated above. Beijing might Taipei observers assert that Deng is already trying to even drop its present name of "People's Republic of China" water down his promises about the future of Hong Kong in favor of calling itself the Republic of China. Beijing might through the provisions of a "mini-constitution," for the even drop its present red banner in favor of the R.O.C. 's Chinese Question has now been projected onto the front white sun on a blue field. pages of the Taipei newspapers via the statements made by Prof. James C. Hsiung of New York University while passing A big hoax? through Taipei after a visit to Beijing. Professor Hsiung said All of these alleged openings from Deng contrast with that he had held conversations with top officials in Beijing, reports of just a few weeks earlier. In early August, the Hong whose names he declined to specify. But he did say that one Kong magazine Cheng Ming had reported that Deng, on of his discussion partners did speak with a Szechuan accent. vacation at Peitaiho, a beach resort near Beijing, told an This is thought to signify that Professor Hsiung had spoken annual C;ommunist Party summitmeeting in July that Beijing directly with Deng, who is a native of the Szechuan region. would not drop its threat of military invasion against Taiwan. Professor Hsiung is also thought to have spoken with General This account depicted Deng as "extremely worried" about Yong, a top Beijing military leader. Taiwan, and personally monitoring reports on the R.O.C. Professor Hsiung described Deng as now being con­ Concerning Beijing's offer to renounce the threat of in­ cerned abouthis place in the immense chronicle of Chinese vasion across the Formosa Straits, it is of course evident that history. He painted a picture of Deng as jealous of Mao the military man must look at an adversary's capabilities, and Zedong and Chou En-lai, his rivals for power who con­ not what he claims his intentions to be. demned him �o years of humiliating rectification as a toilet In an interview to the Chinese Television Service, R.O.C. cleaner during the Great Proletarian Cultural Revolution. Chief ofthe General StaffHau Pei-tsun stated that the R. O. C. Allegedly, Deng thinks that while Mao will go down in is strong enough to defeat an invasion attempt by Beijing. "If history as the architect of the Chinese Communist Revolu­ the enemy dare to launch an invasion against us, I am confi­ tion, Chou will be remembered as the man who consolidated dent that we would be able to crush them," said General Hau, and strengthened that regime. Deng accordingly wants to who was interviewed while relaxing by a swimming pool on secure the niche of the man who united China. the hottest day of the year in Taipei. But while stressing the Therefore, according to Professor Hsiung's account, Deng ability of his forces to defeat an invasion, Hau also conceded is genuinely fearful about the tendencies toward Taiwan in­ that he is not strong enough to mount a counterattack on the dependence, meaning the creation of a governmentin Taipei Chinese mainland. Hau argued against any cuts in the no longer claiming to represent the Chinese state. Such talk R.O.C.'s defense spending, saying, "Our defense budget of Taiwan independence, with its corollary of giving up the should be maintained at a level sufficient to give the people a claim to represent the mainland, is outlawed in the R.O.C., sense of security. Only then will people make investments, but has become one of the more or less open themes of and can the economy continue to develop. The money so opposition agitation that has emerged in the R.O.C. afterthe spent will be worthwhile." To meet the requirements of its lifting of martial law in 1987. The line of the opposition is situation, the R.O.C. maintains a formidable military estab­ that the KMT government is merely the last of a series of lishment, with over 500,000 well-equipped troops under arms colonial oppressor regimes (Dutch, Spanish, British, Japa- for a population of about 20 million.

34 Feature EIR September 16, 1988 Asked to comment on the remarks by Professor Hsiung, adequate, despite attempts to improve it. Thousands of schools Hau described the Beijing message as "a big hoax" and in the mainland countryside are closing their doors because "wishful thinking." "Do you think political power can be the teachers, among the lowest paid persons on the mainland, transferred so simply?" he asked. "If we take the words of are seeking jobs in Deng's "socialist commodity economy" theCommunists at their face value, what would we do if they private ventures. Teachers who remain on the job are often revert to the name of People's Republic tomorrow?" Hau so poor they cannot buy chalk. criticized those who took the Beijing message seriously for The Beijing strategy behind the Hsiung message was the "naive thinking." He stressed that the policy of the R.O.C. subject of a mid-August symposium sponsored by the Flag must be to build up its own strength, stay united, and remain of China Monthly, a political magazine with about 10,000 vigilant. subscribers in the R.O.C. and among Chinese around the A similar skeptical reaction to the Hsiung message comes world. The symposium was chaired by the editor of the Flag from exile circles in Hong Kong, where various intellectuals of China Monthly, C.M. Lao . and writers have pointed out that despite Deng's claims to Many speakers viewed the Hsiung message as another have introducedeconomic modernizations and reforms, the trick by Beijing . In the course of the debate, one speaker who political system of Beijing is the same totalitarian state that said he had been in Britain during the early years of the has been in existence without interruption since 1949 . The Second World War compared Professor Hsiung to Rudolph view of these Hong Kong circles is that Deng and Chinese Hess, the Nazileader who parachuted into Britainand claimed Communist Partychief Chao Ziyang would like nothing bet­ he was Hitler's messenger. The differencethis time, said the ter than to "lock the door and beat the dogs," conducting speaker, is that Deng' s messenger has no standing whatso­ murderous purges and crackdowns internallywhile rejecting ever in Beijing. A professor from the National Normal Uni­ foreign protests with a strongly xenophobic line. versity pointed out that none of Beijing's psychological war­ Other Chinese intellectual circles recall that liberaliza­ fare tactics of past years had attained as great an impact as tions on the part of Beijing have a way of turning into their the Hsiung message. He noted that Taipei officialshad been opposite. They point to Mao Zedong's notorious 1957 slo­ shocked by the message, and that Beijing had partially suc­ gan, "Let a hundred flowers bloom," encouraging the free ceeded in creating a panic in the R.O.C. government. He expression of dissenting opinion. This was followed in 1958 predicted that the mainland rulers would continue to send with a campaign of pitiless retribution against those who had messages in the hope of paralyzing the entire R. O. C. society. dared to speak out. Mao specified that he had called for He summed up his own view that "a good Communist is a flowers, not weeds. dead Communist," a view he attributed to Gen. Douglas MacArthur. Many speakers agreed that from Mao to Chou to Deng's 'reforms' Deng, the Beijing policy has remained the same-the over­ After 10 years of Deng's reforms on the mainland, the throw of the Taipei govemment, preferably by violent means. Beijing regime is officially posting a 19% rate of inflation, It was pointed out that an attempt by Taiwan dissidents to the highest in post-1949 history, and doubtless underesti­ declare he island totally independent of China might provide mated. Beijing remains committed to "price reform," a eu­ Beijing with the pretext needed to justify an attempt at inva­ phemism for price increases. But these increases have been sion. delayed because of alarm in Beijing about the political im­ Some speakers recommended the maintenance of the plications of price increases of as much as 1,000% in recent "three no" policy. But one, Professor Teng, the chairman of months forcertain basic foodstuffs and manufactured goods, the Pacific Cultural Association, said he agreed on the no to according to David Chen of the Taipei China News. The compromises with Beijing, but saw nothing wrong with ne­ world food crisis is known to be hitting the mainland hard. gotiation, and thought that the pretense of denying de facto In north-central China, 30 million people still live in contact is "ridiculous." Professor Teng, a candidate for the caves, according to a report filed by the AP's Jim Abrams Legislative Yuan in the next elections, said that repeating the from Beijing. According to the same reporter, there are now three nos covers up for the lack of an effective policy toward upward of 50 million homeless on the mainland, including the mainland. Professor Teng proposed that traditional peddlers, beggars, and drifters who seek work in the con­ Chinese culture be offered as the alternative to communism struction trades. Before Deng, employees of state-owned in proposing reunification. Other participants in the Flag of companies had de facto life tenure and could not be fired. China Monthly debate proposed that the most effective alter­ They described themselves as "eating from the iron rice pot" native to communist ideology would be Dr. Sun Yat-sen's of state wages. Under Deng, the iron rice pot has been dis­ three principles of the people, which Dr. Sun enunciated in continued. the course of founding the Republic of China in 1911 as the Mainland education has never recovered from the forays first republic in Asia. These three principles are national of the Red Guards of Chairman Mao's Great Proletarian sovereignty, a democratic republic, and economic develop­ Cultural Revolution of l966-76. The education budget is in- ment.

EIR September 16, 1988 Feature 35 Political warfare The conclusions to the debate were offered by Gen. Teng Chaing Kai-shek's Adviser Chieh, one of the most trusted advisers to Generalissimo Chiang Kai-shek from the late 1920s on, and the founder of the still-secret Society for the Realization of the Three Prin­ ciples of the People, known also in China as the Society for National Revival , and known among the Japanese and the A conversation Communists as the Blue Clothes Society. with General Teng presented the struggle against the mainland by Webster G. Tarpley regime in the framework of what he defined as "political warfare ," a concept different from traditional military war­ fare . The problem, he argued, is that the Beijing communist Among those persons alive today who were closely associ­ ideology is to conquer the world using surprise attacks, ated with Generalissimo Chiang Kai-shek during the titanic treacherous stabs in the back, and violence and terrorism. struggles in China during the 1930s, the Second Worfd War, Therefore , no negotiation with Beijing should be undertaken. and the aftermath of that war, a preeminent place is occupied Rather, the Sun Y at-sen progam should be propagandized on by Gen. Teng Chieh, an elder statesman of the Nationalist the mainland, where Dr. Sun is still revered by hundreds of Kuomintang (KMT) Party in the Republic of China on Tai­ millions of persons. wan. At the age of 84, General Teng was born in the same General Teng argued that the Hsiung message is a lie, year as Beijing's Deng Xiaoping, and has dedicated his life sent into the world by a liar (Deng Xiaoping). General Teng to the struggle against Mao's and Deng's Chinese Commu­ noted that the Communist leader has demanded the reunifi­ nists. cation of China by 1992, and that the great opportunity for Gen. Teng Chieh was born in 1904 in the mainland prov­ subversion will be coming up in advance of the November ince of Kiangsu. During the 1920s, he was sent by Chiang 1989 elections to the R.O.C. Legisilative Yuan, the national Kai-shek to study first at Shanghai University, and then at parliament. He predicted that Beijing will intervene in the the famous Wbampoa Military Academy. At Whampoa, sev­ election ferment with the goal of creating mass upheaval and eral members of the Chinese Communist old guard, including destabilization. If the R.O.C. governmentcannot be toppled Liu Shao-chi and Lin Piao, were among the fellow students during 1989, General Teng went on, then Beijing will build whose mentality General Teng came to know well. General up the parties in opposition to the KMT, seeking to start an Teng also studied at the Meiji University in Japan. In the internal revolution that might also provide Beijing with the mid- 1930s, General Teng traveled through Europe , visiting excuse for an armed attack. General Teng strongly criticized Great Britain, Germany, Italy, Turkey, Greece, and Hunga­ the policy of the KMT, saying that forces inside the KMT are ry . cooperating with the opposition forces and fostering their By the early 1930s, General Teng had become one of the growth, giving Beijing its long-awaited opportunity to send most trusted advisers to Chaing Kai-shek. In 1931, Chiang armed forces across the sea. approved a plan for the reorganization of the KMT military He pointed to the unmistakable invasion preparations by and political forces that had been .elaborated by General Teng. the mainland, which constantly holds landing drills and am­ This plan was implemented by General Teng in the years phibious maneuvers, and probes the Taiwan defenses with through 1937. The plan brought about "a sea change in Chin­ fishing boats outfittedfor electronic reconaissance. a's prospects and real strength, laying the foundation for He summed up by saying that if the KMT tried to attack victory in the eight-year war of resistance against the Japa­ the mainland, it would be at a disadvantage. But if Beijing nese invasion that then followed." attempts to storm Taiwan, they will be at a decided disadvan­ tage. He pointed to the fact that Taiwan is divided into two The secret society halves, east and west, by a spinal mountain chain that has At the heart of General Teng's reorganization plan was some of the highest peaks in East Asia. If Beijing were to the creation of a secret society called the Society for the land troops on the west coast of Taiwan, they would have a Realization of the Three Principles of the People, also known very hard time enveloping the easternpart of the island. The as the Society for National Revival. The name of the grouping highlands would be very hard to capture in any case. As long refers to the three principles of the people (national sover­ as the mutual disadvantage for the attacker holds, General eignty, a democratic republic, and economic development) Teng argued, the political warfare aspect of the struggle will expounded by Dr. Sun Yat-sen, the founder of the Republic be the dominant one. General Teng concluded by saying that of China in 1911. The Chinese Communists and the Japanese if the R.O.C. can hold out for the next three years, signs of referredto General Teng's society as the Blue Clothes Soci­ collapse on the mainland will become evident, giving the ety. Many aspects of this society remain unknown to this R.O.C. a perspective for eventual victory. day.

36 Feature EIR September 16, 1988 in Nicaragua, of the Shah of Iran, and of R.O.C. President Chiang. In Iran and Nicaragua, Carter succeeded, but in Taiwan, the KMT stayed in power and Carter was defeated, General Teng points out. "U.S. leaders don't know what communism is, and the free world lacks any plan to fight communism," says General Teng. "If the United States system does not change, the U.S. Gen. Te ng will be eliminated by the communists . U.S. policy must change," General Teng stresses. In his view, "Neither of the two U.S. political parties can fit into the modem world ." He calls for a worldwide strategy In the view of some observers , General Teng's plan gave embodied in an international anti-communist party which in the KMT forces the strength they needed to resist Japanese his view must be egalitarian. General Teng notes that while invasion; without Teng's reorganization, they argue , the Jap­ many parties in the West call themselves democratic , they anese plan for a Blitzkrieg conquest of China in the space of are really dominated by a principle of hierarchical ranking three months might very well have succeeded. General Teng and must therefore be classed as pseudo-democratic . has been the author of a number of books over the years , but none of them were circulated publicly until about seven years 'The U.S. was supporting the Communists' ago. Up to that time, Teng's writings were used only for General Teng also talks about a second plan which he training KMT party , government, and military officials. Many presented to Chiang Kai-shek after the close of the Second of his disciples hold important posts in these fields in the World War. This was a plan to defeat the Maoists in the Republic of China (R.O.C.) today . Their public circulation Chinese civil war. He describes this second plan as having dates from a decision by General Teng to become a public been initially successful, but then the Reds becametoo strong . figure in order to appeal to a broader public to fight commu- . The Nationalists should have prevailed, since they had nism and the Beijing regime. His published titles include The over 5 million troops under arms. The Communists, by con­ Foundation o/ the Party andthe Revolution and Organization trast, had only about a half-million troops and about 2 million and Strategy. armed civilians. The Nationalists outnumbered the Commu­ General Teng is a point of reference for a sizable faction nists two to one, and the Nationalists had superior equipment. of the R.O.C. National Assembly, a body that functions as "So how did we lose?" asks the general . He gives the the electoral college in choosing the republic's President, and responsibility for the loss of China to U.S. Gen. George which also must approve amendments to the Constitution. Marshall, who was sent on a mission to China by President The National Assembly can also try cases of impeachment. Truman in 1947 . "Marshall forced us into peace talks with The National Assembly today is still the one elected in 1948 the Communists. Marshall forced us to retreat," says General on the mainland, but a new election is scheduled for 1992. Teng. When he found that the KMT was not enthusiastic General Teng's starting point is a concept of warfare which about talks for a coalition government with the Reds , Mar­ he refers to as "political warfare" or "total war," and which shall imposed an embargo of all U. S. arms shipments to the is broader than the notions of warfare found among traditional KMT. General Teng sums it up: "The Soviets were support­ Chinese military theorists like Hsun Tzu or Westernones like ing the Communists, and the United States was supporting Clausewitz . This economic, political, and psychological "to­ the Communists. And so, we lost." tal warfare" is his answer to the development of the Com­ General Teng explains this and other U. S. interventions munist war plan through the phases of Marx-Engels, Lenin, in support of communism by saying that there are two coun­ and Mao Zedong. tries in the United States. "One is the anti-communist U.S.A., which wants democracy, and which includes people like Beijing's strategy LaRouche," he explains. Then there is another faction which In General Teng' s view, the basic strategy of Beijing is is "close to the communists." The anti-communist Americans to exploit conflicts between the U.S. and the U.S.S.R. But oftenmake friends with foreign nations, but those nations are while the goal of Communist Chinese strategy is to deprive then often betrayed by the pro-communist Americans . The Moscow of its hegemony, Beijing seeks the destruction of majority of the U.S. population he sees as "neutral , with no the United States and its elimination from the strategic con­ influence." "The big question is how to get an anti-commu­ test. During the Carter era, the Communists sought to carry nist government in the United States." out the strategic encirclement of the United States, using "Man must work it out ," General Teng concludes. "Lead­ bases in the Third World and elsewhere . In response, notes ership is everything. Important people are everything. Num­ General Teng, "Carter did what the Communists wanted." bers are not important. When Dr. Sun Vat-sen started out, he The Carter administration planned the overthrow of Somoza had four people with him. Leadership is everything."

EIR September 16, 1988 Feature 37 Yu goslav crisis may be heading toward civil war by Konstantin George

A catastrophic economic situation and a wave of ethnic con­ The Serbian mobilization erupted Sept. 2-3 with mass flicts that is fast going out of control are driving Yugoslavia demonstrations involving tens of thousands each in the town toward the end of its existence as a federal state,one way or of Smederovo, 25 miles south of Belgrade,and in the town another. The prospect of one of three tragic endings is grow­ of Crvenka in the Voyvodina. Such mass demonstrationshad ing with each passing week: been occurring throughout August,both in Serbia proper,the I) A Serbian military coup d'etat and Army-enforced Voyvodina, and in one case,� rally of 30,000 in Titograd, central rule,ending the power of the non-Serbian republics. the capital of the Republic of Montenegro. This round,how­ 2) A civil war between Serbia and the western republics ever, was qualitatively different. Beyond the now regular of Croatia and Slovenia. demands for direct Serbian rule over Kosovo and the Voy­ 3) A breakdown into chaos and fragmentation along eth­ vodina,and "guns for the Serbs and Montenegrins" in Ko­ nic lines . sovo for use against "Albanian terrorists," the Sept. 2-3 ral­ The Yugoslav crisis threatens to serve as the trigger for a lies marked the launching of the campaign to install Slobodan general crisis in the Balkans,history'S "powder keg of Eu­ Milosevic in power nationwide as the "savior" of Serbia . rope," and could well lead to a full-blown international stra­ In Crvenka and Smederovo, the huge crowds chanted: tegic crisis should Moscow or any of its satellites begin to "Now we know who is the second Tito. His proud name is "fish" in troubled Balkan waters. Slobodan. As long as Slobodan walks the earth,the people will not be slaves to anyone. Slobodan,we are with you." A Serbian power plan These manifestations aremerely the overture. So far,the The drive toward a Serbian power play,under Serbian mass demonstrations have been confined to the territory of party leader Slobodan Milosevic,the would-be "strong man" Serbia and Montenegro,or, in "friendly" territory,to use the who has the tacit support of most of the Army, began in current jargon. August and went into full swing at the beginning of Septem­ The mass Serbian rallies will next be moving into "ene­ ber. Serbia is demanding the revision of the Yugoslav Con­ my" territory . On Saturday, Sept. 10, thousands of Serbs stitution to place under Serbian rule the province's two au­ plan to rally in the town of Jajce in the Bosnian Republic. tonomous regions,Kosovo with an 85% Albanian majority, Bosnia,in central Yugoslavia,sandwiched between Serbia and the Voyvodina with a Serb majority and a large Hungar­ and Croatia, contains a Muslim majority (Slavs who con­ ian minority . The constitutional revision would also strip verted to Islam during the five centuries of Ottoman occupa­ Yugoslavia's other republics of much of their present auton­ tion) and a large Serbian minority. omy. The Serbian plans,which would make Yugoslavia de The Bosnian authorities have warned that they "will not facto a "Greater Serbia," areanathema to Slovenia and Croa­ tolerate" any Serbian protests,and major clashes could occur tia. In short,there is a pre-civil war mood inside the country. with unpredictable consequences. In that event,there could

38 International EIR September 16, 1988 be a dramatic explosion of the Yugoslav crisis almost over­ cedonians takes shape, forming an eastern Yugoslav alliance night. Should that not occur, then an explosion is all but with the Serbs and Montenegrins. ensured by the fact that Serbian demonstrations are planned A crisis in Yugoslav Macedonia is more than an expan­ for September in the capital of every Yugoslav republic: the sion of the Kosovo unrest. Albania has never abandoned its Bosnian capital of Sarajevo; the Croatian capital of Zagreb, claims to both Kosovo and western Macedonia, to create a and the Slovenian capital of Lj Ubljana. In addition, an enor­ "Greater Albania" from the wreckage of Yugoslavia. Simi­ mous show-of-strength rally is planned for mid-September larly, Soviet satellite Bulgaria has never abandoned its claims in Belgrade, the capital of Yugoslavia and of the Serbian that Yugoslav Macedonia belongs to a "Greater Bulgaria." Republic. Any one of these events could provide the trigger Furthermore, in contrast to Albania's official isolationist for the eruption of civil war. policy, the one defense pact Albania has maintained is its The near civil war atmosphere is no longer just a matter 1948 mutual defense treaty with Bulgaria, a treaty directed for private conversation. The public taboo on the matter was against Yugoslavia. To date, the Bulgarian media have kept broken on Sept. 4 by Draza Markovic, the moderate former strict silence over the Serbian demonstrations and the Alban­ President of Serbia. In an open letter to Yugoslavia's party ian riots in Macedonia. How long that official silence will leadership, Markovic denounced Serbia's currentparty lead­ persist is anybody's guess. er, Milosevic, for orchestrating the crisis to make a bid for personal power in Yugoslavia. Markovic minced no words Serbia answers Albania in warning what the implications are of the course adopted On Sept. 5, the leadership of the Serbian Republic re­ by Milosevic: "Where is all this leading to? Aren't we already turned Albania's political declaration of war. Serbian Presi­ at the brink of an abyss?" He concluded that as a result of dent Gen. Peter Gracanin, addressing a combined session of Milosevic's policies, Yugoslavia is moving "either to a coup the Serbian party and government leadership, charged Al­ d'etat or a civil war." bania with plotting to create a "Greater Albania," by using "Albanian nationalists" in Kosovo and western Macedonia Yugoslav-Albanian confrontation brewing to destabilize the situation. The outcome of the Albanian plot, The Yugoslav crisis is already assuming dangerous inter­ he said, was to be an Albanian annexation of both regions. national dimensions, first by taking the form of a rapidly Gracanin, with the full backing ofthe Serbian leadership, growing confrontation between Yugoslavia and Stalinist Al­ declared, "Terror reigns in Kosovo," and denounced "the bania. This side to the crisis began in late August, when the continual mishandling and degradation" of the Serbian mi­ Albanian leadership broke a years-long silence on Kosovo to nority there. The Albanian terror "now threatens to tum into denounce the Yugoslav government and party leadership in a large-scale settling of accounts" between Albanians and strong, provocative language. Serbs "and direct national [ethnic] conflicts." Albanian party leader Ramiz Alia issued what amounted Gracanin announced that the "spec;ial forces" of the In­ to a political declaration of war on Yugoslavia Aug. 29 in a terior Ministry sent to Kosovo months ago will now be used speech in the Albanian town of Peshkopi, near the border against any Albanian disorders, and will "guarantee the se­ with Kosovo. Alia denounced the Yugoslav leadership as a curity and property" of the Serbian and Montenegrin minor­ gang of "Serbian chauvinists," pursuing a policy of "severe ities. oppression" against "the Albanians" in Yugoslavia, whom Gracanin and the Serbian leadership also endorsed the Belgrade was making the scapegoat for "the economic and demand of the mass Serbian protests for the creation of "armed social problems" gripping the country. The speech, broadcast auxiliary units" drawn from the Serbian and Montenegrin by Albanian Radio, was heard by Yugoslavia's 2 million population of Kosovo to "maintain order." These "auxiliary Albanian inhabitants, living in Kosovo and the western part units" will now be created, he announced. of Macedonia adjoining Albania. The result was all too pre­ A very hot autumn for Yugoslavia is ensured. Beyond dictable. the near civil warethnic conflicts, a new strike wave began On Aug. 30, riots of Albanians occurred in western Ma­ in early September, provoked by the collapse of living stan­ cedonia for the first time. Thousands demonstrated in the dards under the burden of Yugoslavia's enormous foreign western Macedonian town of Kumanovo, threw stones at debt. The economic situation, with a 200% inflation rate police, and demanded the creation of a separate Albanian­ alongside an officially enforced wage freeze, is unbearable. language school system. Albanians make up almost one-third The shortages of food and consumer goods are the worst since of Macedonia's population. Since mid- 1987, informed the early postwar years, and with the massive fuel shortages, sources Qave been telling EIR that Macedonia would erupt this winter will be the most bitter in decades. into a "second Kosovo." That has now come to pass. The Most of Europe's population still lives in ignorance of Albanian riots in Macedonia went on for several days; new the fact that a Balkan crisis of tragic dimensions not only eruptionsin the near future are all but certain, and it is only a exists, but is fast moving out of control. Events will soon lift, matter of time before a counter-movement by outraged Ma- abruptly, that veil of ignorance.

EIR September 16, 1988 International 39 Unrest in Russian Empire multiplies: Poland and Armenia by Konstantin George

In contrast to Gorbachov, absent from Moscow for fiveweeks mass protests will not end. This was stated to the London on "vacation," the crisis of national unrest in EasternEurope Times Sept. 5 by Levon Ter Bedrossian, one of the 11 leaders and the Captive Nations inside the Soviet Union has not taken of the Karabakh Committee, which is leading the Armenian a holiday. Moscow is simultaneously beset by the worst underground. "If we achieve our goal" of getting back Kar­ Polish crisis in postwar history, the most dangerous Tran­ abakh, detached from Armenia by Stalin in 1923, "the move­ scaucasus explosions to date, and eruptions in the Baltic ment which has grown up here will remain in being to express Republics, the Ukraine, and East European satellite nations. the will of the people. There are many other topics concerning The leading edge of the current phase of the crisis is all Armenians, including our language, ecology, and the occurring in the Transcaucasus and Poland. whole question of national sovereignty." The weekly mass rallies are to occur every Friday during Armenians denounce Moscow and Gorbachov September and into October, until either Armenian-inhabited The crisis in the Transcaucasus is moving into its most Karabakhjoins Armenia, or, as strike leaders from the Kar­ explosive phase, withArmenia in a state of near-revolt against abakh Committee told the crowd on both occasions, Gorba­ Moscow. The mass protest movement there, thought to have chov "sends in the tanks." Plans are already being draftedfor been "under control" in late July, sprang up again on Aug. a new general strike, timed for October when the Armenian 23, and has been active ever since. parliament convenes, should Moscow not give in by then. On two occasions, Aug. 23 and Aug. 30, crowds of Another major shift in the national unrest picture inside 200,000staged anti-Moscow mass demonstrations in the Ar­ the Soviet Union is the growing coordination between the menian capital of Yerevan. They braved Russian army units undergroundmovements of the non-Russian republics. deployed in the city (disguised in police uniforms), and army The Armenian underground, led by the Karabakh Com­ helicopters, called bitterly "the swallows of perestroika," mittee, gave statements to Western correspondents in a sub­ circling overhead. The mass rallies used the slogan, "This is urb of Yerevan Sept. 4: "Our plan is to extend informal links not Afghanistan," and denounced the Red Army occupation with other national groups who are against the central power, of Armenia. both in the Soviet Union and outside it in places like Poland During the summer, the Armenian mass movement and Czechoslovakia." underwent a qualitative shifton two counts. 1) It moved from These links are already very solid. During 1988, the being a primarily anti-Turkic, anti-Azerbaijan movement, national independence underground organizations represent­ into an anti-Moscow, anti-Russian movement. 2) It has moved ing Armenia, Georgia, the Ukraine, and the three Baltic far beyond the original single-issue demand that the enclave Republics have established a unifiedcoordinating committee of Karabakh, now governed by Azerbaijan, become part of which has held four secret meetings, since made public: Armenia, and adopted a strategy that strike organizers hope January in Yerevan; February in Tbilisi, the Georgian capital; will move Armenia in stages toward the cherished goal of June in Lvov in the western Ukraine, and August in a small nationhood. At the late August rallies, the protests have de­ town in Latvia. manded an end to Russification in Armenia, expressed in A leading personality in the Captive Nations' movement phrases like "A civilized nation is a nation which speaks its recently stressed the importance of this new pheI)omenon: own language," and "Close Down the Russian Schools!" "We have no illusions that the goal of winning national sov­ They are now demanding autonomy and "economic sover­ ereignty will not require a long and hard struggle. It will, and eignty" for the Armenian Republic . cannot happen overnight; it will take many, many years. But Even should Moscow restore Karabakh to Armenia, the no one can underestimate the magnitude of the victory

40 International EIR September 16, 1988 achieved so far, in the following sense. For the first time with the people is to agree to Walesa's demands that the inside the Soviet Union, you have a functioning coordinating "dialogue" actually lead to an opposition policy voice in committee representing the national independence move­ Poland. But on Sept. 5 and 6, the government declared that ments of six nations, and it will soon include a seventh, any legalization of Solidarity is "out of the question." Belorussia. This not only has never happened before , but was Clearly, the "dialogue" is nothing more than a govern­ unthinkable in the past. These national movements have re­ ment tactic to buy time, but even this is failing. On Sept. 6, nounced past differences and squabbles among themselves, Walesa warnedthe governmentnot to back off on its promise to unite their forces against the Russian Empire, against Mos­ (which the government claims it never made) to legalize cow. Even more important, whatever happens to the protests Solidarity. Walesa said to Western journalists in Gdansk, themselves, even if Moscow succeeds in suppressing them, that the talks with the regime "must lead to pluralism," i.e., Moscow has already lost what I consider to be the most an opposition voice in shaping policy, "and a real role for the importantpart of the battle, their psychological control over trade unions, for this is the last chance" for a solution through these national populations. The struggle for national inde­ "dialogue." If the talks , scheduled for mid-September, fail, pendence among these peoples was thought to be 'dead,' or or as Walesa phrased it, if "they betray us, and undermine at least dormant for decades. As we've seen, it's very much Walesa's authority," then Walesa announced that he would alive. The people of these nations want full independence, call "new strikes, very quickly," in the shipyards and facto­ they want to become part of a Europe of sovereign nations. ries of Poland. Moscow can still keep the chains on their bodies, but the The government,under immense Soviet pressure, cannot chains on their minds have been broken forever. Russifica­ meet Walesa's demands. Solidarity cannot make any more tion has suffered a decisive defeat." significant compromises. An autumn confrontation, with a new strike wave, fueled by the accelerating economic col­ The Polish crisis lapse, is inevitable. The second Polish strike wave of 1988 was brought to an end on Sept. 1, following a series of ultimatums broadcast Moscow prepares a military solution on Polish Radio Aug. 30 and 31. The first ultimatum came The crises confronting the Russian Empire pose a great fromthe interiorminister, General Kiszczak, demanding that danger to the West, as long as Moscow continues to enjoy its the strikes, "endangering national security," end on Aug. 31. present-and steadily increasing.,margin of military supe­ The final ultimatum, the next day, in the name of the Polish riority. The tendency for Moscow to seek a "solution" to its General Staff, declared that the strikes "are affecting the crises by a policy of expansion and conquest, beginning with nation's security and defense capabilities . . . and are endan­ WesternEurope , will grow in the months ahead. Ominously, gering Poland's obligations to its [Warsaw Pact] alliance during August and September, the Soviet media returned to partners." No Pole needed any translation. This was the sort the language of the Cold War, and made a central point of of language used in 1968 before the Soviets invaded Czech­ blaming the United States and the West for the economic oslovakia. crisis and the national unrest. These ultimatums formed the setting to Solidarity leader On Aug. 29, the party daily Pravda printed a full page Lech Walesa's Aug. 31 meeting with General Kiszczak, and feature on the origins of the Cold War, laying exclusive Walesa's announcement immediately afterwards calling off blame for all postwar problems on the United States. The the strikes. The government in return pledged to begin a authors were Valentin Falin, head of the Novosti press agen­ "dialogue" with the Opposition, including Walesa, in Sep­ cy and former ambassador to West Germany, and Lev Be­ tember that will lead to "legalization" of the opposition. zymensky, an associate editor of the weekly Novoye Vremya The arrangement reached temporarily stopped the strikes, (New Times), one of the main authors of Moscow's slander but has in no way solved the crisis. The stage is set for the campaign against Lyndon LaRouche, and prominent name next explosion to occur soon on two counts. First of all, the in Moscow's virulent 1984 campaign against "German Re­ economic catastropheis worsening with every passing week. vanchism. " Food shortages are appalling; meat has largely disappeared, That article was the kick-off. On Sept. 2, Pravdaprinted along with dairy products, fruits, and vegetables. Inflationis a lengthy interview with KGB chief and Politburo member soaring well above 50%, available goods are unaffordable, Viktor Chebrikov. Chebrikov warnedthat the Soviet system and the perennial lack of non-food essentials such as toilet is threatened by "ideological sabotage," which is directedby paper, detergents, and soap remains. In the second half of foreign authorities and aimed at "impairing the socialist world August, even consumer durables, such as TV sets, washing outlook of the Soviet people, instilling in our society foreign machines, refrigerators and so on, have disappeared fromthe views and sentiments, and instigating the current anti-Soviet shops, and beginning in October, fuel shortages will be felt. activities." He continued, "Certain circles of imperialism These facts alone guarantee a new upsurge. have not yet given up on a confrontation course." These The laruzelski regime's only chance to avoid a collision "foreign authorities" are seeking to "utilize the freer atmos-

EIR September 16, 1988 International 41 phere" now existing in the Soviet Union under glasnost to "undenninethe system." "Special forces [agents] are coordinating this activity, using mass infonnation media, sending emissaries into our country ....These special forces and subversive ideologi­ cal centers, seeking to sabotage the perestroika, are trying to encourage in our country the organizing of illegal, semi­ legal, and even legal groupings which would operate at their Soviet base in Syria command. To achieve their aims, they seek out hostile ele­ ments in our society ... giving them moral and material new offensive in the support, and practically instigating them on a course of out­ right confrontation with the Soviet government and social by Selim al Khodr system." Chebrikov thus made it clear not only that Moscow was blaming the West for the unrest in the Russian Empire, but A political fight is about to erupt in Western military and that, "among the intelligence services, the Cold War is on in political circles over what should be the response to Mos­ full force." cow's latest challenge in the Mediterranean. According to an The timing of the Chebrikov interview was also striking. Aug. 27 New York Times, U.S. Rear Adm. William O. Every year, in mid-September, the Soviet Union dutifully Studeman, director of the National Security Agency, and celebrates the birthday of Felix Dzherzhinsky, founder and Nonnan Polmar, a U.S. Navy ispecialist on Soviet military head of the KGB's predecessor, the Cheka, immediately after affairs , warned in early August that the Soviet Union is en­ the Bolshevik takeover. The occasion is marked by a major gaged in extensive construction work at the Syrian port of address given by the current KGB chief, i.e., Chebrikov, Tartus, building the first major 'Soviet naval base of its kind which is dutifully printed in the newspapers. Here is striking in the Mediterranean since thelate 1940s. proof of not only how grave the crisis in the Russian Empire In the short tenn, the base will enhance Soviet naval is, but also of the speed with which Moscow wishes to begin military deployment worldwide, by allowing the Soviet fleet constructing the case to justify outward expansion to elimi­ to bypass the Black Sea and the Dardanelles. Instead, the nate those Western "centers" allegedly causing the unrest. Soviet fleet in the Baltic could be sent through the North Sea Chebrikov could not wait even two weeks to get the message and the Atlantic into the Mediterranean, having at their dis­ out. posal major military facilities on a pennanent basis. Middle The offensive blaming the West for the unrest reached its Eastern military observers report that Tartus is expected to firstpeak in Pravda Sept. 6, where the West was blamed for become the Cam Ranh Bay of the Mediterranean, throwing the Polish crisis. "Imperialist forces, with the U.S.A. at the a major military challenge to the whole NATO naval deploy­ head, are seeking to exploit the strikes in Poland ...to build ment in the region. Not by coincidence, it comes at a time up their assets." The strikes were "chosen by anti-socialist that the presence of the U. S. Sixth Fleet in the region is being forces as a tool to undennine Poland's economic founda­ questioned, and that the United States is under threat of tions." Then followed a commentary, linking past and pres­ expulsion from Greece. Actually, except for Naples in Italy, ent "imperialist" operations against the Soviet Empire: the United States has no pennanent naval base which could "What have we observed in recent weeks? The 20th an­ be compared to what the Soviets are getting in Tartus. niversary of the Czechoslovakia events of 1968 neared and a veritable anti-socialist Black Sabbath is organized. Strikes Why the U.S. silence? broke out in Poland and a furious commotion is raised about Questions have been raised as to why the New York Times this episode as well. As is well known, imperialism has publicized the matter, and not the U.S. government. An already tried more than once to use the internalproblems of indication was given in Nonnan Polmar's statement that he socialist countries to prod the forces of counterrevolution into had advised congressional members that the "U. S. should action ....Their effortsfailed [in the past] . But the enemies protest to Syria." The remark underlines the fact that Wash­ of socialism are not stopping their destructive schemes," and ington has, to date, not done so. On the contrary , State here, the strike wave in Poland is cited as a key example. Department officials have been quoted saying that the new Pravda's conclusion, "The activities of the Western in­ U.S. ambassador to Damascus, Edward Djerejian, has been telligence services have inflicted damage on the political, asked to quietly raise the issue with the Syrian leadership, military, and economic interests of the Soviet Union." but has so far received "no answer." These articles are the firstwarning signs ofthe mounting Intelligence sources report that the State Department was danger of military thrusts outward by Moscow to solve its embarrassed by the New York Times article. Following a deepening internalcr isis. stonny session on Aug. 5 between State Department Middle

42 International EIR September 16, 1988 between the two countries. Since aproximately the mid- 1980s, the Soviet Union has been allowed to use both the ports of Latakia and Tartus as ports of call, as well as for minor repairs of their Mediterranean fleet. Intelligence observers note that last October's visit of Admiral Grishin, first deputy com­ mander of the Soviet Naval Forces, paved the way for an extension of the Soviet naval commitment to Syria. It was signals a followed by the January 1988 visit to Tartus of Adm. Vladi­ mir Chernavin, commander in chief of the Soviet Naval Mediterranean Forces, who also laid the groundwork for the extension of a nearby air base. Since then, there has been a steady stream of high Soviet military officialsvisiting Syria, from Gen. Vladimir Pikalov, chief of the Chemical Warfare Department of the Army in East specialistRichard Murphy and Syrian President Hafez March, Marshal of Aviation and Chief of the Soviet Air Force al Assad, over the issue of the Lebanese presidential elec­ Anatoly Yefimov in April, and Admiral of the Fleet A.1. tions, Foggy Bottom has been eager to play down any hint of Sorokin, first deputy chief of the Main Political Directorate a crisis. of the Soviet Army and Navy, in May. Each was accom­ But NATO intelligence sources in the region indicate that panied by a large military delegation of experts, many of thereal embarrassment comes from the fact that many within whom have remained in Syria. the State Department consider that, as part of the ongoing superpower negotiations on global power-sharing agree­ The issues for Western intelligence ments, Moscow is entitled to have a base at Tartus, hence a How far the construction work in Tartus has proceeded, foot in the Mediterranean. Unofficially, the same diplomatic remains a military secret. However, intelligence sources re­ circles are arguing that, given that the U.S. Sixth Fleet has port that the Soviets are involved in top-secret work on the been increasingly relying on Haifa, Israel, as a port of call nearby island of Arwad. Though too small to harbor a full­ and for maintenance, it is "fair" to allow the Soviets the same fledged naval base, its deep water and its remoteness make freedom in Syria. In the same vein, it is pointed out that the small island perfectly suitable to receive some of Mos­ Washington's coordination with the Soviet naval deployment cow's most advanced submarines. As a cover, Syria has just in the Persian Gulf played a positive role in speeding the received three new Kilo-class Soviet submarines. process of a settlement of the Gulf War. To build a military base in Syria represents a major com­ A recently published report from theWashington-based mitment to that country and its leadership, which has been Center for Strategicand International Studies gives the polit­ most welcome by President Assad. Especially in the recent ical guidelines behind this policy. Titled "Meeting the Mav­ period, Assad had grown wary of the possibility of a con­ erick: The Regional Challenges Facing the Next President," frontation with Iraq, following the end of the Gulf War. The and written by staffers Andrew Goldberg and Debra Van Soviet moves also clarify Syria's intended role in the region. Opstal, the report warnsthat Washington is to be confronted Intelligence analysts are pointing to two issues. First, the by "well-armed and assertive Third World States ...the Soviet build-up in Syria is occurring at a time when Moscow growth of Japanese and European economic, military and is said to be cutting down on its deployment in the Third political influence and the modernization of China ." The World; hence, its commitment to Syria underlines that, as far authors observe that the "old paradigm," according to which as Soviet strategists are concerned, Syria and the Near East U.S. defense policy had the "single-minded focus of deter­ are not "Third World," but are a militarilyintegrated partof ring the Soviet Union, is decreasingly relevant." The report the Soviet European and Mediterranean war theater. Second, concludes that Washington has to accept the reality of a the construction of the base clarifies the question of Soviet­ "condominium of interests in which the Soviet Union and the Syrian relations at a time when, since May 1987, there have United States together would seek to contain other power been rumors of tension between the two countries. Then, centers and regional states." Though the report has had only General Secretary Mikhail Gorbachov had called on Syria to a limited circulation so far, it has already generated disbelief join a peace initiative in the Middle East, which Assad re­ and anger among U.S. allies abroad. fused. The recent developments underscore that Syria's military The Soviet build-up in Syria importance for Moscow overshadows political divergences. These developments have not occurred overnight, but are And, notwithstanding the wheelings and dealings of the State theresult of several years of Soviet military build-up in Syria Department, this has all of Syria's neighbors extremely since the 1980 signing of a friendship and cooperation treaty worried.

EIR September 16, 1988 International 43 religious leader at the temple, left with his followers on a pilgrimage. Consequently, the Chauhan faction largely es­ caped. The ISYF has its international base in Vancouver, and is led by Lakhbir Singh, the nephew of the slain separatist Is Sikh terror religious leader Sant Bhindranwale. Closely tied to Lakbir Singh is Gurjit Singh, former leader of the All India Sikh being reactivated? Youth Federation (AISYF), a Bhindranwale relative by mar­ riage; and Talwinder Singh Parmar, leader of the Babbar by Joseph Brewda Khalsa terrorist grouping. All are based in Vancouver and have been repeatedly implicated in separatist assassinations and planned assassinations for years. The Baggas resided at The Aug. 26 attempted assassination of an Indian newpaper Lakhbir Singh's home when they firstmoved to Canada. editor in Vancouver, Canada, has fueled speculation that Sikh separatist terroristnetworks may be reactivated in North Who benefits? America and elsewhere. This is the first important Sikh sep­ What is unclear about the recent assassination attempt, aratist incident in Canada since June 1985, when terrorists and the inter-terrorist rivalry, is its origin. The various Sikh placed a bomb on an Air India flight originating in Toronto, terrorist organizations, like all such organizations, are the killing all 329 abroad. pawns of the competing inteUigence agencies of various The Sikh separatists claim that the state of Punjab in countries. The secret services of Britain, Canada, Russia, India, where most members of the Sikh religious minority China, Pakistan, Israel, and the U.S. all have known capa­ live, should break off from India and become an independent bilities among the Khalistanis, as does India itself. It can be nation in its own right, "Khalistan." assumed that the factional line-up among the Sikh terrorists Canada remains one of the most important centers of Sikh reflects outside influence in ways which are not obvious. terrorism internationally. The exact relationship of the at­ Whether or not one faction emerges over another may bear tempt to the Aug. 17 murder of Pakistani President Zia ul­ on which nation dominates the Khalistani terrorist move­ Haq is now being investigated. ment, and who gets targeted by the terrorists. Tara Singh Hayer, publisher of the Indo-Canadian Times, The assassination of Pakistani President Zia ul-Haq, to­ was gunned down at his officeby one Harkirat Singh Bagga, gether with a dozen leaders of the Pakistani military and the a 17-year-old associate of the International Sikh Youth Fed­ U.S. ambassador in a plane crash last month, could have a eration (ISYF). No moderate himself, Hayer is a close asso­ serious impact on the Sikh terrorist scene. Among the dead ciate of Dr. Jagjit Singh Chauhan of Reading, England, the were Pakistani Chief of Staff Akhtar Abdur Rahman, for­ chairman of the Khalistan National Council, who publicly merly the long-time head of Pakistani intelligence, and Lt. claimed credit for the Oct. 31, 1984 assassination of Indian Gen. Mian Mohammed Afzool. Both, particularly Rahman, Prime Minister Indira Gandhi. In recent months, tensions oversaw arms deliveries to the Afghan Mujahideen. It is well between the two terrorist groupings have increased. known that the same units that supply the Mujahideen also Bagga's father, Maj . Santokh Singh Bagga, is suspected supply the Khalistani terrorists, 'who have training camps and of having helped plan the 1986 assassination of Indian Gen­ safehouses throughout Pakistan. eral Viadya, who masterminded the 1984 Indian government The accelerated Soviet pressure on Pakistan through the raid on the Golden Temple in Amritsar, Punjab, the religious Zia murder, and efforts to splinter the state along triballines , center and safehouse of the self-styled "Khalistani" separa­ do not promise a let-up of Sikh operations against India, tists. Following the Viadya murder, the Baggas, and Rajit however. Indeed, there are indications that Moscow pressure Singh Kuki, another organizer of the assassination, fled to on India through such terrorist Operations may now dramati­ the United States. Kuki is being held in New Jersey pending cally increase. Pakistan has serted as a buffer against Soviet extradition to India. Bagga slipped into Canada, where he pressure on India, despite the rivalry between the two na­ has received political refugee status. tions. According to British sources, the ISYF attempt on Hayer The pressure on India seems to have been stepped up is part of a broader plot targeting others , including Jagjit even before Zia was killed. On Aug. 2, Indian Home Minister Singh Chauhan. The ISYF now accuses Chauhan's faction Santosh Mohan Dev released internal Khalistani documents of collaboration with the Indian government. The pretext for to the Indian Parliament that had been obtained fromthe May this charge is events surrounding "Operation Black Thun­ Golden Temple raid, which demonstrated new Sikh plans to der," the May 1988 raid on the Golden Temple which left assassinate Prime Minister Rajiv Gandhi. Individuals in­ 1,000 "Khalistani" terrorists dead or captured. Immediately volved in the plot included leading ISYF figures, and others, prior to the raid, Jasbir Singh Roda, a Chauhan-affiliated some of whom are based in Canada.

44 International EIR September 16, 1988 "accountability. " Is there a deeper motive lurking behind Wali Khan's antics? Qazi Hussain Ahmad thinks so. Since the ANP would Wal i Khan is up to not be able to win even a single seat anywhere in Pakistan outside the Northwest Frontier Province (NWFP), he points no good, out, elections are of no interest to Wali Khan. They might again even cut his high profile down to size. But since he cannot by Ramtanu Maitra openly oppose elections, he is "creating confusion in the minds of the people." One might expect the 11 leader to be harsh with Wali Khan, since they have been sworn enemies The recent statement by Pushtun leader and president of the for almost a decade, but one needn't take his word for the Awami National Party (ANP) Khan Abdul Wali Khan, that Pushtun politician's ulterior motives. elections in Pakistan should be postponed for three months to complete the process of "accountability," has drawn sharp A known quantity response from both the Jamaat-e-Islami (11) and the Pakistan Wali Khan's commitment to Pakistan's well-being has Muslim League (PML). come into question before. The son of Khan Abdul Ghaffar On the face of it, the demand for "accountability" is Khan, Wali Khan has always been a proponent of establish­ clearly an effort to discredit some PML members and weaken ing a Pushtun state spanning the Afghanistan-Pakistan bor­ that party's prospects in the coming elections. Since Wali der. In 1978, following the takeover in Kabul by a pro­ Khan's ANP is a member of the coalition that opposes the Moscow party, Wali Khan regularly met Afghan President PML, it would seem to be a clever ploy. PML members, Babrak Karmal and other officials seekir� to collaborate in though not the party as such, have been governing Pakistan establishing the Pushtun state. since 1985. Dr. Najibullah, the present Afghan chief who ousted Reacting to Wali Khan's demand, the spiritual leader of Karmal, is a friend of Wali Khan, dating perhaps priorto his the PML, Pir Sahib of Pagara, told newsmen in Lahore on tenure as head of the Afghan Secret Service, when Najibullah Sept. 3, "The elections could be deferred for three years, lived in Peshawar and joined the ANP. The ANP leader also provided the process of accountability covered the period keeps in contact with the pro-Moscow lobby in India. But from Aug. 14, 1947 [the day Pakistan was born] and was to every indication is that the leftistcoloring is only skin deep. be completed in letter and spirit." If the administrators are to Like most of his fellow ANP leaders in Pushtun areas , Wali be made accountable for their misdeeds, then every admin­ Khan is a relatively big landholder. istrator who had ever been entrusted to serve Pakistan should Wali Khan's forte , even his most sympathetic observers be scrutinized and all wrong-doers punished. To target the acknowledge, is creating chaos and confusion. As the pro­ PML members alone would be a politically motivated act, he Khan analyst Selig Harrison has emphasized in his book In pointed out. The Pir is not one to be taken in by clever ploys. Afghanistan's Shadow, "Wali Khan and his venerated father, More insightful observations came from the Amir (chief) Abdul Ghaffar Khan, leader of the anti-British Redshirt of Jamaat-e-Islami, Qazi Hussain Ahmad, who described movement, had never indicated clearly whether their concept Wali Kahn's recent demand as a "replay" of his activities of Pushtunistan meant an autonomous Pushtun State within following the fall of the Bhutto regime in 1977. It is well Pakistan, an Afghan-linked Pushtun State, or an independent knowllthat Wali Khan had crossed swords with ZulfiqarAli Pushtun State." He has to this day kept all the options open. Bhutto and came out the loser. So when Gen. Zia ul-Haq His penchant for fishing in troubled waters is well known, removed Bhutto in a coup on July 5, 1977, Wali Khan threw and he, along with his late father and wife, were denied entry his support to the martial law regime. But at the same time, to Sind province for the past year or so following violent when General Zia announced fresh elections within 90 days, clashes between the Mohajirs and Pathans there. Wali Khan the Pushtun "progressive" insisted: "Accountability now, loudly accused the Zia government of anti-Pathan senti­ elections later." ments. And, in August 1986, he told ANP partyworkers that What the Pushtun leader apparently had in mind was to if democracy was not restored, they would have to organize haul all the top Pakistan People's Party (PPP) leaders to court "a violent revolution." and finish them off. Now , since Wali Khan is planning an On Sept. 3, the ban lifted, Wali Khan marched into Sind electoral alliance with Benazir Bhutto' s PPP, the names have where he defended in a press conference the policies of the been changed but the game is the same: destabilization. As Soviet Union and Afghanistan against Pakistan, justifying the 11 leaders recalled, in 1977 it was Wali Khan's campaign the recent Afghan bombing raids 40 miles inside Pakistan. that led responsible people to claim that it was not General He portrayed the Pakistan Army and the mujahideen guerril­ Zia's military regime that postponed the promised elections, las as "intruders" trying to block the exit of Soviet troops but the political leaders who demanded it in the name of from Afghanistan.

EIR September 16, 1988 International 45 Jenkins himself has strong leftist persuasions. His com­ ments, all the more, betray the level of anxiety among British scientific and defense personnel over the deaths.

'Star Wars deaths' So far, no official explanlltion worth its salt has been Another U. K. defense given for the pattern of untoward happenings among British defense scientists. The public line from British police has scientist found dead been to deny that there is even a pattern. Each death or disappearance has been explained away as an isolated suicide by MarkBurdman or accident, or left "open" for further investigation. One theory making the rounds in Britain, attributes the deaths to the extraordinary stress felt by British scientists, under con­ Leading security experts in Western Europe privately esti­ ditions of an ongoing Ministry of Defense probe into alleged mate that there is an identifiableconnection between the Aug. malpractices at Marconi and perhaps other companies. Sup­ 28 crash of Italian Aeromacchi jets at the Ramstein Base air posedly, this stress is driving scientists to suicide and weird show in West Germany, the Jan. 28, 1986 explosion of the self-destructive accidents. U. S. shuttle Challenger, and the recent years' pattern of Undoubtedly, what would be causing stress in defense strange deaths and disappearances of British defense scien­ layers, is the absence of will to locate these deaths in the tists. All point to East bloc intelligence services' sabotage of context of an expanded "irregular warfare" campaign against Western defense capabilities, these experts believe. the West by Soviet or Soviet-linked special forces. Three days before Ramstein, police in Britain found re­ Last March 27, British Labour Party parliamentarian tired Army Brig. Gen. John Ferry , assistant marketing man­ Douglas Hoyle called on Defense Minister George Younger ager at the Marconi company, dead in a company apartment to startan urgent inquiry into the patternof deaths, following south of London. The 60-year-old Ferry was found with what was, at that time, the eighth mysterious death of a electric wires in his mouth, electrocuted from the main cur­ British defense scientist within 18 months. rent. Police immediately labeled this brutal death suicide, On March 25, 52-year-old Trevor Knight had been found even though Ferry had shown few signs of mental problems, slumped at the wheel of his carin the garage of his home in except mild depression following a car accident. Harpenden, Hertfordshire, with a hose connected to the ex­ Ferry was the ninth employee of British defense contrac­ haust pipe. Knight, an engineer, worked in the guided weap­ tor Marconi to die or disappear under odd circumstances in ons division of Marconi DefenlieSy stems in Stanmore, Mid­ the past few years. Press reports said he had access to secret dlesex, which is Marconi's base for work in space and de­ files on a revolutionary new gun, and that he was a liaison fense. MP Hoyle, president of the Manufacturing, Science between Marconi and the British armedserv ices. and Finance Union, chargedthat the police viewthat Knight's On Sept. 3, British Trades Union Congress president death was not suspicious, was "inadequate." Clive Jenkins announced that he was launching a top-level Said Hoyle: "The authorities have said there was nothing inquiry into recent suspicious deaths of British scientists suspicious about all of these deaths, but there are too many working on the frontiers of high-technology defense re­ coincidences. How many deaths are we going to have before search. According to the Sept. 4 Sunday Telegraph of Lon­ something is done? Why have these deaths suddenly begun don, Jenkins, joint general secretary of the high-technology to occur? They have all happened in such a short space of Manufacturing, Science, and Finance (MSF) union whose time ....What is the link between all these? Is it not wor­ members include many research scientists, said that it was rying that this is happening to top scientists? Is it simply "statistically incredible" that so many research workers at the overwork or is there something more sinister afoot? It is very Marconi company all died of suicide. He spoke of great alarming." concern among his members over "these clusters of suicides, Aside from the scientists who have died under odd cir­ violent deaths, or murders ." cumstances over the past couple of years, at least threeothers Jenkins stated: "We have decided to write to the other have disappeared and have never been found. major firms(besides Marconi) in advanced electronics asking Many of these have been directly or indirectly employed for comparable details. The question is, could there be a link by Marconi, the defense subsidiary of GEC. Some worked between these deaths? I ask myself, is there a great cover-up in projects potentially relevant to the American Strategic going on? If so, what? By whom? Is it ours, or is it theirs­ Defense Initiative project. The March 28 Daily Telegraph whoever they may be?" The firmsthat Jenkins sent his ques­ called them "Star Wars deaths." The Telegraph said that tions to include Ferranti, Phillips, Plessey, Racal, and Thorn Knight, for example, was "involved in the Star Wars program EMI, all of which do research in electronics high technology. at the Marconi defense company."

46 International EIR September 16, 1988 Fight to save Philhannonia Hungarica orchestra stirs a deep response

by Hartmut Cramer

"It is more important than ever, that the free world show it is money, as usual . When the Adenauer government in 1959 still the freeworld ." invited the Philharmonia Hungarica to settle permanently in With these words, the famous conductor Antal Dorati in West Germany, in the little town of Marl in the Ruhr region, a recent interview motivated the political necessity of saving the orchestra's budget was divided as follows: 90% of the the refugee orchestra Philharmonia Hungarica, which was money would be provided by the federal governmentin Bonn founded in Vienna in 1957, and found a permanent home in and the remaining 10% in equal parts by the state government Marl, West Germany in 1959. As part of the tilt toward in Dusseldorf, North Rhine-Westphalia,and the city of Marl . Moscow which has been the Bonn government's reaction to Now, this is being put into question. Suddenly, at the the "New Yalta" deal between Washington and Moscow, the beginning of this year, the Christian Democratic government very existence of this orchestra is threatened. in Bonn announced its decision to cut its part to 50%, thereby When Russian tanks moved into Budapest more than 30 condemning the orchestra to death from next year on . The years ago, bloodily crushing the hopes of the Hungarian whole city of Marl was mobilized, politicians were put under population fighting for human rights and dignity, hundreds pressure, and in feverish negotiations behind the scenes, of thousands of Hungarian patriots were forced to move west­ Bonn was forced to gradually increase its part to at least 80%, ward, literally overnight, to save their own lives. Among on the condition that the other two funders would double their them were hundreds of professional musicians who often shares. The city of Marl , though badly hit by the economic couldn't rescue their instruments . At that time, these patriotic disaster in the Ruhr region, immediately agreed, but the musicians were welcomed by Western governments who, Social Democratic government in Dusseldorf stubbornly re­ like now , lacked the guts to fight Moscow politically, but fu sed. who at least, unlike now , wanted to give a clear political Each and every argument was used by the cultural bu­ signal that they were opposed to Moscow culturally . reaucrats in Dusseldorf in order to justify their decision to In the 30 years since then , the political and cultural matrix destroy a classical orchestra: "We already have enough me­ of the West has undergone a profound change . Not only has diocre orchestras in our region," and, "Do unemployed steel­ the great classical tradition in art been considerably under­ workers get a job by listening to classical music?" were the mined-in many cases destroyed-but the West is no longer standard formulas used by the people "responsible" for cul­ willing to defend its cultural tradition, the very heart of its tural affairs . Their boss, Cultural Minister Schwier, even existence, against Moscow's outrageous attacks . Glasnost explained to a stunned audience on a recent radio talk show , leaves no room for artistic freedom in the classical sense. "Mozart's music at his time was just entertainment; today , it That is the political background to the blatant attempt to is rock music which the public likes ." destroy one of the world's finest classical orchestras: the Since all these silly arguments could easily be refuted by Philharmonia Hungarica, famous not only for its many inter­ the outstanding musical quality of this orchestra, Dusseldorf national awards, among them the Golden Record for the only in a sudden about face then argued, "Since this orchestra is recording of all 104 Haydn symphonies, a unique artistic so important, it is the responsibility of the federal government undertaking, but also for its formidable courage and strength in Bonn to pay." So, the buck was passed between the two in overcoming each and every obstacle threatening its exis­ "capitals. " tence . The call of the Schiller Institute Little-minded bureaucrats This deadlock was only broken when the international Superficially, the fight for the orchestra, which has played Schiller Institute, famous in the musical world since its April with the world's leading conductors and soloists like Antal 9 conference in Milan which called for lower orchestral tun­ Dorati, Rafael Kubelik, Wolfgang Sawallisch, Joseph Szig­ ing, joined the fight and made it known to a broad public . eti , Yehudi Menuhin, Wolfgang Schneiderhan, Henryk Especially after the president of the Schiller Institute, Helga Szeryng, and Janos Starker, to name only a few, is about Zepp-LaRouche, issued a call to "help to save the orchestra,"

EIR September 16, 1988 International 47 whose existence is threatened by "short-sighted politicians ductor of the Philharmonia Hungarica for many years . and little-minded cultural bureaucrats ," some of the leading • Werner Thirichen, the former solo tympanist of the artists of the world went into action: Berlin Philharmonic Orchestra, who worked for seven years • Antal Dorati, world-famous conductor, best known under the great Wilhelm Furtwlingler and who played with in the United States as the former chief conductor in Minne­ the Philharmonia Hungarica several times, also signed. Thlir­ apolis, Dallas, and Detroit, and music director of the Wash­ ichen became famous recently for his book Paukenschliige ington, D.C. National Symphony Orchestra, who has con­ (Drumbeats), in which he gives a brilliant analysis of the two ducted all the great orchestras of the world , was among the conductors Furtwangler and Herbert von Karajan, not minc­ first to sign the call of the Schiller Institute. Dorati , the ing any words in his support for the "creative artist" Furtwan­ honorary president of the Philharmonia Hungarica, is rightly gler over the "admittedly successful manager" von Karajan. • Franz Meyers, a former Christian Democratic prime minister of North Rhine-Westphalia, was the first known politician to sign the call of the Schiller Institute. Meyers , a Each and every argument was close friendof the late Konrad Adenauer, fought during 1960 to save the Philharmonia Hungarica from many attempts to used by the bureaucrats in destroy it then. Dusseldo1jto justify their decision The members of the orchestra themselves were "more to destroy a classical orchestra. But than delighted" over the call of the Schiller Institute and are presently distributing it among their friends, colleagues, guest then, the Schiller Institute conductors, and members of the many choruses they are mobilized the music world. performing with. To demonstrate the wave of sympathy for the orchestra: One guest conductor signed the call at a recent rehearsal with the words, "I will sign anything that is for the Philharmonia Hungarica. " being considered one of the "fathers" of this orchestra, since he helped it from the very beginning in 1956, and always at New hope for the orchestra crucial moments. It was under his baton that the orchestra Indeed, there is now hope for the orchestra. In light of accomplished the enormous task of recording the Haydn this impressive support by some of the world's leading artists symphonies . and faced with the perspective that a negative decision will Though presently not in good health, 82-year-old Mae­ definitely result in a public outcry for the preservation of stro Dorati gave an interview to the German cultural maga­ classical culture in West Germany, the Bonn government has zine lbykus, blasting the German cultural bureaucrats. He showed signs of its willingness to give in. Undoubtedly, this demandedthat this "critical moment become theturning point" decision was facilitated by the fact that a new wave of refu­ for the orchestra, to save it once and for all, and "give it its gees from the East is rolling toward West Germany , with up justifiedplace in German cultural life. " to 2 million desperate people expected in the next two years, • Wolfgang Sawallisch, the chief conductor at the pres­ among them at least 2,000 qualified musicians . tigious Bavarian State Opera in Munich and one of the lead­ Since Bonn is strongly in favor of a detente policy with ing conductors in the world , also signed the call to save the Soviet Russia, no matter how brutally Moscow strikes at the Philharmonia Hungarica, an orchestra which he himself has West, it is trying to "solve" the refugee problem in a quiet conducted in the past. way. Some sly bureaucrats in Bonn obviously think it is • Norbert Brainin, the first violinist of the legendary "cheaper" to pay some 350,000 deutschemarks to keep the Amadeus Quartet, who showed the civic courage to dedicate mouths of Philharmonia Hungarica supporters shut, at a time a Boston a recital with pianist Gunter Ludwig to his "good when the demand to create several new refugee orchestras friendLyndon LaRouche" last December, not only supported could come up very soon. the call , but sent a personal telegram to Johannes Rau, the The orchestra has been told it can expect-though noth­ prime minister of the German state of North Rhine-West­ ing has been set down in writing-not only the necessary phalia, urging him to use "all his political influence such that money to save it, but also probably additional money to pay this orchestra is saved and its future secured." up to 15 top string players that are badly needed. The word • Reinhard Peters, professor of conducting at the Folk­ is that the Philharmonia Hungarica will be saved for "another wang Musical High School in Essen, West Germany, and five years," during which time, "the orchestra can demon­ internationally known because of his many concerts with the strate what it's worth," as some idiot politicians dared to tell world famous Berlin Philharmonic Orchestra, signed not only these famous musicians. This is not just outrageous, but a the Schiller Institute's call to save the refugee orchestra, but clear hint that the bureaucrats in Bonn and Dusseldorf want also its call for the lower tuning . Peters was the chief con- to retracttheir commitment as soon as it is politically feasible.

48 International EIR September 16, 1988 New Delhi by Susan Maitra From

Settling the Gorkha issue and the West Bengal government. Aft er twoyears of violence, calm has returned to a strategic area For India's government, the vio­ in India's northeast, at last. lence in the Datjeelinghills was a mat­ ter of serious concern. The area runs along Nepal , and the borders are mostly unmanned. There have been regular reports of arms coming to the T he prospect of calm and unity re­ district, which depends heavily on Gorkhaland fighters from Nepal, and turning to the lush green hills of Dar­ tourism-related business. Major of the extremists slipping into Nepal jeeling has brightened with the sign­ clashes began between the Commu­ to avoid arrest. Since Nepal's entire ing of a tripartite accord between the nist Party of India (Marxist) workers , northern extremity borders Tibet, there central government, the West Bengal who controlled the tea garden unions, were hints that the People's Republic government, and the Gorkha leaders , and the GNLF . Local businessmen of China may begin fishing in these promising an end to the two-year-old were not spared , and tourism virtually troubled waters. Although the Nepal violent conflictthat had takenhundreds halted. government had always denied shel­ of lives and made a shambles of the The violence hardened the stance tering GNLF activists or supplying already weak economy. of the government of West Bengal as them arms , the rumors continued. Just Unfortunately, in the atmosphere well as New Delhi's. The demand for before signing the accord, New Delhi of political holy war stirred up in Delhi "Gorkhaland" was a non-starter. On sent Foreign Minister Natwar Singh by an opposition whose appetite has July 27 , 1987, during talks with Sub­ on a special mission to Nepal. been whetted by scandals and blun­ hash Ghising, Prime Minister Gandhi In truth , the Gorkhas did not need ders by the government, this achieve­ made it clear that there would never a foreign hand to provoke them. The ment of the Rajiv Gandhi administra­ be a division of West Bengal . Mean­ hills were neglected by Delhi, and in tion has not received its just due. while, having ventured onto the path fact, little development had gone on The "Memorandum of Settle­ of violence, Ghising began to realize there in the last 40 years, even though ment," signed in Calcutta on Aug. 22 that the extremist elements were trying the area supplies one of India's major by Union Home Minister Buta Singh, to take over the Gorkha movement and foreign exchange earners-fine Dar­ West Bengal Chief Minister Jyoti give it an anti-India bias. In mid- 1987, jeeling tea. It still has very little agro­ Basu, and Gorkha National Liberation the West Bengal government adopted industry, for which it is well suited. Front (GNLF)chief Subhash Ghising, the Terrorists Disruptive Activities There is no university , no engineering gave the Gorkhas what they sought Preventive Act, with the presumed aim college, no medical or agricultural most: their identity . The accord rec­ of rounding up and detaining extrem­ college-nor even a forestry research ognizes the Gorkhas who had settled ists . center, despite the area's rich endow­ in India before 1950 as Indian citi­ The conflicthad to be resolved po­ ment of forests. zens , as distinct from those who mi­ litically. Even as violence rocked the Under the accord, a Datjeeling grated to India from Nepal under the hills in 1987 and early 1988, Ghising Gorkha Hill Council (OGHC)has been Indo-Nepal Treaty of 1950. Those who persisted in talks with the government set up, with jurisdiction beyond the came after 1950 will have to apply for in New Delhi , reiterating his faith in Datjeeling Hill district proper. Its au­ Indian citizenship and sever all con­ the Union and the democratic process. tonomous character is reflected in the nections with Nepal. He managed to keep control over the clause which states that, subject to The accord is a rational conclusion leadership amid growing demands for central and state laws, it has the pow­ to the agitation which began in 1980 more militancy within the Front, and ers pertaining to "allotment, occupa­ and became violent in 1986. In 1986, dropped the "Gorkhaland" demand in tion, or use or setting apart of land, the Gorkhas demanded a new state favor of the concept of a Hill Council other than any land which is a reserved called "Gorkhaland ," carved out of to administer the area on a semi-au­ forest, for the purpose of agriculture West Bengal. The demand involved tonomous basis. At a July 10, 1988 or grazing, or for residential or other the hill districtsb ordering Nepal, Sik­ convention in Dmjeeling, Ghising won non-agricultural purposes or for any kim (a partof India) , and Bhutan. In a mandate from his supporters to ne­ purpose likely to promote the interest April 1986, the GNLF activists began gotiate the demand for a Hill Council of the inhabitants of any village, lo­ to put pressure in the Datjeeling hill to a final agreement with New Delhi cality, or town."

EIR September 16, 1988 International 49 N orthem Flank by Lotta-Stina Thronell

Swedish elections unpredictable Stating why he supports Swedish With as many as 18% of voters undecided two weeks befo re the NATO membership, Dr. Enerstroem parliamentarypoll, revolts app ear to be brewing. asserted that Sweden today cannot de­ fend itself: In contrast to the immedi­ ate postwar period, its military power alone cannot match that of the enemy force, the U.S.S.R. He speaks for 50,000 Social Democrats opposed to T he last opinion poll before the Sept. Social Democrats, for trying to be the party leadership. 18 Swedish elections, on whether more green than the green party , in an In the western Swedish city of Sweden will have a socialist or a non­ interview with the liberal Stockholm Gothenburg, once a proud shipbuild­ socialist governmentfor the next three daily Dagens Nyheter. He assailed ing center, the EAP's campaign for years , gave an unprecedented result: Social Democratic Environment Min­ NATO and nuclear power was cov­ Normally, 2% of the voters are unde­ ister Birgitta Dahl for "competing . . . ered by regional TV and regional pa­ cided two weeks before election day , to be the most radical on the environ­ pers . while this year 10% are undecided, ment issue, in order tocapture the most Concerning the unpredictable re­ and 8% has been given to the environ­ votes." Holmden added, "I think it is sults of the elections, foreign observ­ mentalist party , which so far has had crazy not to use nuclear energy . " ers should know one important detail. no parliamentary seats . That suggests Moreover, a member o(the con­ Every party in the elections has tohave that 18% of the voters are undecided ! servative-leaning Moderate Party , its own ballot. Sixteen parties are par­ Social Democratic Premier Ingvar Goete Pettersson, opened a new local ticipating this year, and all but the five Carlsson admitted the uncertainty , party in the Kinda municipality near parties represented in the parliament statingthat he foresees an eventualnew Linkoeping, Sweden's aerospace cen­ have to pay for and distribute the bal­ early election if no basis can be found ter. He told the press: "If the voters lots themselves. For a new party to be for a majority government. only knew a small part of what is going heard, it has to either have a lot of The election campaign is a pathet­ on behind the scenes in the dominating money, or massive media backing, or ic repeat of the one run by the Palme parties, they probably would get up­ preferably both. National elections are regime in 1985. The opposition then set. . . . For a long time the Moderate held every third year, and the voter hoped to be able to replace the social­ Party has been ruled dictatorially. " then must cast three votes: one for the ists. Instead Olof Palme of the Social­ Sweden is likely to see more "re­ parliament, one for the "canton," and ist International , with the support of volts" after Sept. 18. The chairman of one for the municipality . the oligarchical elite, censored his own the European Labor Party (EAP), Mi­ In the last official opinion poll, re­ press as well as the opposition's so chael Ericson, a member of the inter­ leased Sept. 3, the environmentalist that no controversial issue would national political movement inspired party, MP, which so far has no parlia­ emerge . Two months after Palme 's by Lyndon LaRouche, has announced mentary seats, was projected to win as party won, in October, three revolts that the EAP will continue to build a much as 8.;1%, or 30 seats . This poll hit Sweden: The officers started a re­ grassroots base for a Swedish defense might be an attempt to give the "green­ bellion against the no-defense , pro­ based on joining NATO , as well as for ies" the so-called protest vote , but it Soviet policy coming from the Social an overall economic program that can does not reflect the real sentiment of Democratic government, and farmers stop the AIDS pandemic. Swedes. Another poll taken at the same and workers protested strongly against Although the EAP's policy paper time showed a 30% increase in back­ the planned austerity policy. on defense has circulated at the high­ ing for nuclear energy. Since the nu­ Today , three years later, once est military levels, the national media clear energy referendum of 1980, 20- again all real issues have been cen­ have blacked out the EAP campaign. 25% had been favorable, but thelatest sored. Debate on military defense and So Social Democratic opposition poll suddenly showed that 49% of combatting AIDS is suppressed. But leader, Dr. Alf Enerstroem, joined Swedes want nuclear power produc­ revolt is already in the air. The chair­ EAP leader Michael Ericson in press tion to continue . One major factor may man of the biggest mine workers shop conferences outside Sweden, namely, be that nuclear energy is three to four in the far-north city of Kiruna, Roland in the two NATO countries, Norway times cheaper than "alternative" Holmden, blasted his own party , the and Denmark! sources.

50 International EIR September 16, 1988 Report from Bonn by Rainer Apel

Left-wing corporatism on the march ler's firsteconomics minister in 1933. The German Social Democrats, after some squawking by labor, Rappe's remark was to the point, but was not picked up by the congress voted up the "Swedish model" of austerity policy. delegates. Lafontaine took note of the critique that one delegate after the oth­ er voiced against his views , but ap­ T he debate on economics was at the Lafontaine, the state governor of the peared totally unmoved and even told center of the party congress of Ger­ Saarland, who has meanwhile moved the congress: "I know I'm challenging many's Social Democrats (SPD) in up into the national executive as one you very much, but it must be done Miinsterfrom Aug . 30 to Sept. 2. Be­ of two party vice-chairmen. Giving that way." cause of the traditionally close links the keynote address on economics at The secret behind Lafontaine's between the SPD and the labor move­ the Miinster party congress on Aug. performance was that he is generally ment, many expected the partyto come 31, Lafontaine endorsed the "Swedish backed by the party executive, which up with remedies for the high jobless model" of labor and investment redis­ allows him to launch trial balloons on rate (8.5% nationally, over 16% in the tribution, excessive taxation, and "al­ corporatist ideas, see what the reac­ Ruhr industrial heartland) with a pro­ ternative producti on." He called for tion of the public is, and try the same gram for industrial recovery . virtual wage cuts for the broad mass again with reformulated proposals. The party organization, however, ofthe employed, to build funds for the After all, he got a lot of applause from has long been conquered by "yuppies" creation of new jobs. the delegates in Miinster for his re­ and post-industrial ideologues, at the Lafontaine's speech sparked hefty marks , and he was reelected as party expense of labor's influence. Since the protest from the labor union chair­ vice chairman with more than 68% of early 1980s, the SPD leaders have been men, most of whom were attending the votes. telling the labor movement that tradi­ the SPD party congress as members of Even the "labor critics" of his tional industry (steel, coal, textiles, the party's "council on labor affairs ." views are conspiring for the same bas­ construction, shipbuilding) is "out," It was not Lafontaine 's reference to ic corporatist model. Franz Steinkiihl­ that technetronics are "in." the Swedish model of corporatism that er for example, chairman of the metal Especially the nuclear power sec­ was attacked , though, but single points workers (Germany's largest with 2.6 tor should be replaced by "alternative of his speech, like bringing back sev­ million members) declared in Miinster energy sources" like solar and wind en-day and weekend work. that he "shares the same finalgoal with energy, the SPD ideologues told the The only appropriate , half-com­ Oskar." workers . This would cost 50,000 jobs petent critique came from Hermann And just a few days before the in the nuclear sector, plus 80,000 in Rappe, chairman of the German congress in Miinster, a high-powered coal mining. New jobs would be cre­ chemical workers (the third-largest delegation of SPD party officials ated in the conservation and anti-pol­ union with 640 ,000 members), who toured Sweden .to study the infamous lution branches of the future . But while said that Lafontaine's proposals stand "Swedish model." This included party old jobs have been destroyed, new jobs in the tradition of the "Briining eco­ manager Anke Fuchs and economic are not being provided. Most regions nomic policy by emergency decrees, policy spokesman Wolfgang Roth , with the highest jobless rates in Ger­ and its ensuing [political] move­ who were all "deeply impressed" by many are , by the way , governed by ments." This referred to the drastic what they saw in Sweden. Social Democrats. austerity policy of pre-war German In spite of the harsh, but impotent The division of labor in German Chancellor Hermann Briining, a attacks on Lafontaine, the SPD party politics seems to be that while the staunch corporatist who was in office congress passed a platform calling for Christian-Free Democratic govern­ at thepeak of the economic depression higher taxation under the guise of ment in Bonn drafts the austerity pol­ from 1930 to late spring 1932, and laid "fighting pollution," for replacing nu­ icy, the ideologues of the opposition the ground for the accession to power clear power by �'alternative energies," Social Democrats keep boycotting in­ by Hitler's National Socialists in early and for a "new work ethic ." In prin­ dustrial reemployment. 1933. Brii ning was inspired by long­ ciple, this was all Lafontaine wanted: One of the ideologues' mouth­ time German Reichsbank director a majority vote for left-wing corpora­ pieces in the early 1980s was Oskar Hj almar Schacht, who became Hit- tism.

EIR September 16, 1988 International 51 Dateline Mexico by Hugo LOpez Ochoa

The case of the 25,000 voting booths cleaning � the elections. " he said. "I Will a recount of the vote be carried out, or will Mexico get an will accept there sult, whatever it be , illegitimate ruler? but only if it comes from comparing the numbers from the counting pro­ cedures, by opening up whatever elec­ toral packets [of ballots] necessary." On Sept. 4, Abel Vicencio Tovar, head of the PAN parliamentary bloc , announced that the PAN too would It is showdown time in Mexico . The votes-with an average of 67% of the demand the opening of the electoral new national Congress must certify the vote at those booths going to Salinas, packets , "and if that is refused, then presidential election, and the opposi­ 20% to Cardenas ,and 11% to the PAN. will come the proposal to nullify the tion parties continue to insist that that Given the deep-seated hostility to­ elections." The same sentiment was certification will only be accepted as ward former Budget and Planning reiterated 'by former PAN secretary legitimate if and when a full and trans­ Minister Salinas-author of the last general Bernardo Batiz. parent recount of the votes cast at six years' economic policies-by Batiz also raised an unusual pos­ 25 ,000 polling stations-to which the nearly ever layer of the austerity­ sibility: an alliance between the PAN opposition was never granted access, wracked Mexican people, Bartlett's and the FDN on the issue, since to­ on orders oflnterior Secretary Manuel figures are simply unbelievable. gether they have 237 deputies in the Bartlett-is conducted . These polling In fact, the De la Madrid govern­ new Congress. That means that only stations represent 46% of the total ment is now trapped by its own fig­ 24 of the PRI candidates-who cur­ 55 ,000 that were installed throughout ures , because, in order toraise the vote rently number 263-would need to the country on July 6, the day of the tally for Salinas at the sequestered vote in favor of opening the disputed presidential election. polling booths, they have had to ex­ ballots , for the opposition to win a Bartlett sequestered the 25 ,000 aggeratedly shrink the overall absten­ majority decision for an honest re­ controversial polling station results tion percentage-from the traditional count, and the probable determination after information from the first30 ,000 42% to less than 30%, and in some of a victory for Cardenas. booths reached the Federal Elections cases, to O% ! The huge ongoing factional battle Commission's computer center, On Aug. 30, FDN representatives inside the PRJ , and especially the dis­ clearly indicating that the vote trend said that the impossibility of produc­ content of the trade union layers , have was an unequivocal 40% in favor of ing clean electoral results through the President de la Madrid and his would­ nationalist Cuauhtemoc Cardenas , efforts of the Electoral College "has be successor, Salinas de Gortari , presidential candidate of the National caused a delicate political situation at chewing their nails. As one columnist Democratic Front (FDN) . a national level, which threatens to put it, writing in El Universal of Sept. At the same time , the official can­ become the worst political crisis that 4, "The vote of the [trade union] con­ didate , Carlos Salinas de Gortari , of the country has seen in recent dec­ gressmen could prove decisive; they the Revolutionary Institutional Party ades." The opposition spokesmen in­ are sufficient to tilt the vote in Con­ (PRI) , was carrying only 34%, and the sisted that the PRJ inflated the results gress. The defection of but a few monetarist National Action Party in their favor by at least 3 million votes , PRIistas ," he wrote , "would be suffi­ (PAN) just 22% . Interior Secretary while at the same time stealing nearly cient to change the history of the coun­ Bartlett, with no more authority than 1.5 million votes that belonged to the try ." his own word, awarded Salinas de FDN . On Sept. 6 Cardenas himself stat­ Gortari an overall 50.3% of the total The next day, on the eve of Presi­ ed, "The simple fact that the Federal vote , while giving Cardenas 31 % and dent Miguel de la Madrid's final State Elections Commission has not pre­ the PAN 17%. of the Union address, and of the in­ sented the results of the 25 ,000 pend­ For Bartlett's figures to have been stallation of the new Congress, Car­ ing voting booths, will invalidate the legitimate, there would have had to be denas proposed opening up the se­ presidential election." On Sept. 8, he a total turnaround in the vote at the questered packets of ballots from "only warned of a plot to impose Salinas 25 ,000 sequestered polling booths­ a few thousand" of the booths in dis­ "through an arbitrary act of force , which represent less than half the total pute . "We will agree to the form of lacking legality and legitimacy. "

52 International EIR September 16, 1988 Andean Report by JavierAlmario

World Bank causes 'natural disasters' the past several years, not a fingerhas The bank' s refusal to finance essential infr astructure pro;ects in been lifted to improve the country's most vital commercial waterway. Colombia has caused killer floods . The Inter-AmericanDevelopment Bank (IADB) recently presented its officialjust ification for why it and its big brother, the World Bank, refuse to finance these crucial projects. In a ' study on the problem of "absolute One can't fightnature ," said Pub­ The government of Belisario Be­ poverty" presented at a conference in lic Works Minister Luis Fernando Jar­ tancur accepted the World Bank'sdic­ Cartagena, Colombia, the IADB ex­ amillo Correa, referring to the ongo­ tates as orders, and suspended the plained that infrastructure projects like ing tragedy afflicting the people of project, despite having to pay $40 mil­ highways and dams only benefited Cordoba department in northern Col­ lion in compensation to the Soviet 37% of poor layers in Third World ombia. As of this writing, some company that had been contracted to countries. On the otherhand, the study 314,000 hectares of cropland have build the dams. asserted, tourism benefited nearly been floodedby the swollen waters of President Virgilio Barco, a former 100%! the Sinu River, destroying 99,000 tons World Bank employee, is continuing The World Bank has also contrib­ of food and leaving more than 100,000 the World Bank's policy to the letter. uted to the destructive altering of the persons homeless and destitute. Mines and Energy Minister Guillermo climate, both in Colombia and world­ The minister added, correctly, that Perryhas imposedan "adjustment plan wide. The "subsistence" agricultural the long-term solution was to achieve for the electrical sector," designed by projects financed by that institution controlover the Sinu through the con­ the World Bank, whose first "recom­ have meant the wholesale destruction struction of the Vrra Dam. What he mendation" is a moratorium on all fur­ of the ground cover in the Amazon failed to mention is that it was the ther construction of dams. According jungle and the desertification of once World Bank which was directly re­ to said plan, no new hydroelectric arable croplands. In Colombia, these sponsible for the suspension of that projects will be undertaken until the pick-and-shovel projects have been crucial project. middle of the next decade. extensively applied to the now terror­ The Vrra project consists of two Despite the World Bank's claims ist-ridden territory of Caqueta, under scaleddams , Vrra-I and Vrra-IT, which of "excess capacity," the figurestell a the name Integrated Rural Develop­ had been under study since 1963 and different story. Colombia has a mere ment. This consists of cutting down which were intended to bring the Sinu 200 watts of installed electrical capac­ the jungle, burning it, and growing River, whose regular floodings go all ity per inhabitant, as compared to ad­ twoor threecrops-until the land gives the way back in Colombian memory, vanced sector figures of 1 ,000 watts. out. This razing and burning has af­ under control. According to the hy­ According to the figures of the Barco fected Colombia's mountain ranges, droelectric plans of the 1970s, the government itself, at least 40% of the where her rivers are born. Vrra-I dam was to have begun con­ Colombian population lacks electrical Another step leading to eventual struction in 1980. Had the project got­ service! new "natural" catastrophes was the re­ ten under way at that time, the drama The dramatic flooding of the Sinu cent announcement by Minister Jar­ of Cordoba could have been avoided. River is expected to be repeated at any amillo Correa that the Barco govern­ However, in recent years, the moment by the central Magdalena ment will not build the Atrato-Truan­ project was promoted almost entirely River, given the rapidly rising level of do sea-level canal, approved by from the point of view of hydroelectric that major waterway. Such major cit­ congressional legislation in 1986 as a generation. In 1984, four years after ies as Barranquilla are immediately complement to the already congested the repeatedly postponed starting date threatened. As with the Sinu, the Pub­ Panama Canal, because it is "too cost­ of the project, the World Bank ordered lic Works and Transport Ministry has ly." Instead, suggested the minister, the project suspended, since, accord­ in its archives voluminous studies on the country will build a "dry canal," ing to the criteria of that institution, water regulation and the means for that is, a Pacific-Atlantic railroad and Colombia had excess electrical capac­ conserving the Magdalena as a navig­ highway linkup. "We must be realis­ ity! able river 365 days a year. And yet, in tic," he insisted.

EIR September 16, 1988 International 53 International Intelligence

border with Namibia to ceasefireobservers . on U.S. Gis missing in action during the Savimbi blasts The UNITA leader added that he had Indochina wars of the 1960s. been asked to meet Crocker Sept. 3, but She also quickly added that Laos was State Dept.'s Crocker said, to laughter from his troops, that he "moving in the right direction" and that the would be staying at his headquarters to watch U.S. government was encouraged by the The head of Angola's pro-Western UNITA soccer instead. Laotian government's moves to prosecute guerrilla force, Dr. Jonas Savimbi, has 48 people involved in the narcotics trade , lashed out at the U.S. State Department's including a Politburo member. African point man, Chester Crocker, for Benedictines leaving stabbing America's allies in the back. Sav­ imbi, speaking at a press conference at his Lefebvre 'S sinking ship headquarters in southern Angola Sept. 3, Chinese hand in The Benedictine Order is separating itself said the Angolan government was using Burmese troubles? from France's schismatic former Archbish­ U.S.-mediated peace talks on Angola as an op Marcel Lefebvre , and moving back to­ opportunity to destroy UNITA with the aid The People's Republic of China has been ward Rome . Lefebvre , who never accepted of Cuban troop reinforcements . Savimbi expressing discreet approval of Burmese any part of the Vatican II reforms in the charged that Crocker knew this would hap­ protesters' demands through its press cov­ Catholic Church, was finally excommuni­ pen. "Is he trying to dig graves for his erage of the unrest, Agence France Presse cated this year after independently ordain­ friends?" news wire noted Sept. 2, raising the ques­ ing a number of bishops against the orders At the same time, Savimbi accused tion of whether there is a Chinese hand in of the Vatican. Crocker of having sabotaged an attempt by the political upheaval that has toppled the The "dissident" Benedictine monastery certain African countries to bring the An­ 26-year-old government of Gen. Ne Win. of Barroux, in southern France, one of the golan government into talks with UNITA. Beijing Review quoted observers as say­ mainstays of the Lefebvre movement, has The talks arrangedby Crocker involved An­ ing that "only when the new leaders properly now completed talks with Rome's envoy, gola, Cuba, and South Africa, with the So­ deal with the problems and effectively carry CardinalAugustin Mayer. An agreement has viets as observers . out the economicreform policy and promote been signed and made public which lifts all South African Defense Minister Mag­ democracy in the country , will Burma be sanctions pronounced against the 70 Bene­ nus Malan has echoed Savimbi' s charges able to extricate itself from the current dif­ dictine monks of the community, in ex­ that the Cubans have actually reinforced their ficulties. " change for their returnto the Vatican fold. positions over the last three months while Beijing's apparent support for the cause The Barroux monastery, which has a talks on their withdrawal from Angola have of multiple parties in a neighboring country branch in Brazil, and its prior Dom Gerard been going on. He said the Cubans had sent may be due to a desire to weaken Rangoon's Calvet, has played a quiet political role in another 10,000 men to Angola, as well as relationship with Moscow, observers cited France . Ultra-right French demagogue Jean­ 24 combat planes, tanks, and other equip­ by AFP noted. Marie Le Pen, whose National Front gained ment. As a result of the talks, South Africa a sensational 11% in last year's parliamen­ has already withdrawn its forces from from tary elections , is a frequent visitor to its southern Angola, endangering UNITA's grounds. Soviet lead in space positions. Savimbi said that Angolan government 'unchallengeable ' troops had already launched a new offensive State Dept. admits against his forces, and that there were now The Soviets are developing an "unchal­ 60,000 Cuban troops in Angola with more Laotian drug-running lengeable lead in space," because of the 1986 on the way. France's Le Figaro commented U.S. shuttle disaster and subsequent U.S. that this could mean not only an offensive The u.s. State Department has finally ac­ reluctance to stand behind its space pro­ against UNIT A, but also an attack on Na­ cused the Communist government of Laos gram, Jane's Sp aceflight Directory editor mibia, the disputed South African protec­ of involvement in drug trafficking. Laotian Reginald Turnill wrote in the introduction torate . involvement in the dope trade was exposed to the latest edition of the book. UNITA was distancing itself from the by EIR way back in 1978. In the "three bleak years through which peace talks, he said, because they had put "It may be a matter of government poli­ the shuttle has been grounded, much has the rebels at a military disadvantage. "We cy," State Department spokesman Phyllis been going on" on the Soviet side, he notes, don't understand what the aims of the ne­ Oakley acknowleged to reporters Aug. 30. adding, ''TheWestern world has almost for­ gotiations are-to find peace, or to increase She was quick to add, however, that State gotten the cosmonauts passing above them the possibility of continued war?" had no plans to call for sanctions against with cameras and over-curious eyes 16 times Savimbi said that UNITA would not sur­ Laos, citing the State Department's interest every 24 hours. " render territory along Angola's southeastern in obtaining Laos's continued cooperation Tumill points out that, in 1987, the So-

54 International EIR September 16, 1988 Briefly

viets launched 95 space missions compared "Belgian defense officials said Col. Binet to 7 by the United States. Since 1957, the had been involved in the purchase of aircraft ISRAELI Soviets have made 1,985 space launches, for the Belgian forces since 1987, and was • Prime Minister Yit­ comparedto 752 for the United States. well informed about the technical aspects of zhak Sharnir is demanding the dis­ The Soviets' Mir space station project is the American-made F-16 jet fighter, NATO missal of Foreign Ministry director also moving ahead of any such U.S. project, helicopters, and electronic countermea­ general Maj . Avraham Tarnirfor say­ and the startof Soviet manned shuttle flights sures. He had been under surveillance for a ing that Israel "had to get used to the is "imminent," says Tumill. He predicts that year by the army's security services before idea that the Palestinians are repre­ the Soviet Mir-2 space factory , "a potential his arrest last Friday. " sented by the PLO, and no other or­ launch pad to Mars," may be ready by the According tothe Telegraph account from ganization will be able to replace it," early 1990s. He believes that, given current Brussels, Belgian police are saying that while he was in Washington in the trends, the Soviets will be the first to reach Colonel Binet had sold Belgian and NATO first week of September. Mars, a trip which Tumhill claims is the information in return for "considerable" sums Soviets' ultimate goal. of money. • TOP SOVIET military com­ The Mir project "should be enough to The Belgian Defense Ministry issued a manders will stage maneuvers in the confirm the Soviets' unchallengeable lead statement claiming that high-technology Ukraine, Moldavia, and the Black in space ....Western eyes and ears remain photographs and other material "manifestly Sea, during the second half of Sep­ firmly shut against knowledge of the re­ meant for espionage and destined for the tember. markable Soviet achievements with Mir East," were found in a special briefcase at during 1987-88." an undisclosed location. • AEROFWT'S ticket agency Meanwhile, "Space Surrender" was the Defense Minister Daniel Coeme said manager in Sydney, Australia, has title of a commentary by William Buckley only that documents were found linking him been accused of being a spy. Oppo­ inthe Sept. 6 Washington Post. He stressed to the secret services of other countries. sition Liberals charge that Vladimir that even if the Soviets dismantle the Kras­ Podshipkov reports to a military in­ noyarskradar facility whichthe United States telligence officerat the Soviet embas­ is threateningto label a "material breach" of sy in Canberra. They object to the the ABM treaty , the Soviets still have seri­ u. s. offe rs more Labour government's negotiations ous capabilities that make mincemeat out of over port access for Soviet fishing the treaty . aid to Philippines vessels and landingrights for the So­ Buckley goes on to write about "the as­ viet airline to enable fishing crew tonishing disintegration of our space pro­ The United States has offered to double its changeovers. gram under the Reagan administration," aid commitment to the Philippines, raising pointing to the fact that the Soviets have a it to $360 million yearly, to assure the future • THE WORLD Council of launch capability 10 times larger than the of its two strategic bases on the islands, Su­ Churches is planning "peace and rec­ West's for placing many satellites in space. bic Bay and Clark Air Base. President Cor­ onciliation" initiatives throughout He says thepoliticians are to blame, but also azon Aquino, however, is insisting that the Asia, involving Sri Lanka, Indo­ the Joint Chiefs of Staff. "Nobody is in a aid be at least tripled, while Foreign Minis­ china, the Koreas, and Burma. A better position to tell us than the JCS how ter Raul Manglapus is pushing for a much senior council official said Sept. 6 deteriorated our strategic position is," higher figure, according to a Sept. 5 Wash­ that a "peace dialogue" among Buckley says. "And yet they might as well ington Post report. "church leaders" representing Indo­ be three blind mice in respect of the utter, Aquino told Secretary of State George china and the ASEAN countries will suicidal folly of the ABM Treaty's being Shultz inJuly that an acceptable figure would take place in' Indonesia in late Sep­ kept alive in 1988." be $540 million in security assistance per tember. year, which would triple the current level. Foreign Minister Manglapus appealed • THE ITALIAN Air Force lost Belgian officer to Shultz separately to find "creative" ways two aircraft in unexplained accidents to boost the U.S. compensation to about $1 in the week following the Aug. 28 arrested as spy billion yearly. disaster involving three Italian jets at Meanwhile, a new survey of the Filipino Ramstein Air Force Base in West A senior BelgianAir Force officer, Col. Guy people says that 41 % want the U . S. bases to Germany. An Agusta-Bell military Binet, was arrested Sept. 5 on charges of remain on the islands, but that the bases helicopter crashed in the Adriatic selling militarysecrets to an unnamed Com­ agreement must be revised to increase U. S. while returning fromthe Persian Gulf, munist country. compensation. The Asian Research Organ­ and military plane crashed during Calling this a "major spy scandal," Lon­ ization survey showed that only 8% want takeofffrom the Riminimilitary base. don's Daily Telegraph Sept. 6 reported, the bases dismantled.

EIR September 16, 1988 International 55 �TIillNational

The defense crisis: Where is George going?

by William Jones

With the first debate between the presidential nominees now in any way to prevent the total destruction of U.S. military scheduled for Sept. 25, the country is facing the most pro­ capabilities. In the choice between cholera and the plague, found economic crisis of its history , and a drastic erosion of they have chosen cholera as the lesser of two evils. defense capabilities, as a result of budget cuts and the Rea­ There exists indeed a strong thrust from these layers to gan-Gorbachov INF treaty. Where do the candidates stand, try to keep Bush on track. The interventions by former De­ and how is the voter to sort out rhetoric from actual policy? fense Secretary Caspar Weinberger and Dr. Edward Teller The last month has been somewhat disappointing for into the defense debate, on behalf of the SDI, at the end of Democratic presidential hopeful Michael Dukakis. Ever since August, were moves in that direction. Teller emphasized that the Republican National Convention in New Orleans, Du­ some form of initial deployment of the SDI "during the next kakis has seen his support slipping in the polls. Attacked four years" was likely if Bush were elected, but it is by no continuously by the Bush-Quayle duo for his liberal stand on means clear at this point whether that is, in fact, a part of the defense issues, the Massachusetts governor has not had an Bush program. Rhetoric aside, the big question remains: easy time of it. What will be the Bush administration's actual policy on the Conservative Republicans (and a good number of "Rea­ pressing issues confronting the national defense? gan Democrats") have undoubtedly been encouraged by George Bush's new "tough on defense" image and by his The future of NATO pledge to stick with the Strategic Defense Initiative (SDI). Interesting motion around the defense issue has been Some people perhaps believe, or hope, that Bush is intent on surfacing from a number of unexpected directions. At the preserving the "Reagan legacy," despite his blueblood cre­ end of August, members of the Project on Monitoring De­ dentials as a leading light of the Eastern Liberal Establish­ fense Reorganization issued a working memorandum on "The ment. But Bush's interview to the New York Times at the end Future of NATO," which has received surprisingly little cov­ of August, where he said that a "full deployment" of the SDI erage in the mass media. The endorsers of the memorandum would be "too expensive," enraged supporters of the pro­ included David Abshire, U.S. ambassador to NATO; former gram, and drew a salvo of criticism from conservative media defense secretaries Harold Brown, James Schlesinger, and commentators . Dr. Edward Teller's assurances that the New Melvin Laird; former secretaries of state Dean Rusk, Alex­ York Times had distorted what Bush said, did not completely ander Haig, and Edmund Muskie; former chief of staffof the eliminate doubts about Bush's commitment to the SDI pro­ Joint Chiefs of Staff David Jones; former NATO Supreme gram, which has become all the more crucial for the nation, Commander BernardRogers ; as well as Andrew Goodpaster, in view of the U.S. nuclear disengagement from Europe Brent Scowcroft, and Harry Train. under the INF treaty . The memorandum expressed concern that the INF treaty, The Bush camp is, to be sure, a very heterogeneous crew. combined with the magnitude of the stock market collapse Conservative military and industrial layers, the backbone of and the pressures exerted in the U; S. Congress on behalf of the Reagan campaign victories in 1980 and 1984, have placed ever sharper trade protection, have created a grave crisis for their hopes on Bush as the only candidate who would work the WesternAlliance . The memorandum was stronglyword-

56 National EIR September 16, 1988 ed and, coming from such a mixed group of people, had some with new and sophisticated technologies like radio frequency notable elements in it. weapons. Any defense "reorganization" which does not in­ First of all, the authors reject any denuclearization of clude an anti-spetsnaz capability would represent a defense Europe. "The American nuclear deterrent, both strategic and of already lost positions. At a time when NATO aircraft are theater-based, must and will be available to sustain the se­ falling out of the air at an ever greater frequency due to curity of Europe as long as it is required," says the memoran­ suspicious "accidents," combatting the "spetsnaz factor" ought dum. "No end to that necessity can be seen for the foreseeable to be at a premium in such a defense reorganization. future." The document then goes on to call for the moderni­ Despite its useful elements, caution is required for what zation of battlefieldnuclear weapons (with ranges ofless than may tum out to be recommendations by "sheep in wolves' 300miles) as "an effective way of demonstrating an appre­ clothing." The authors of the memorandum are not armchair ciation of the indispensable role of nuclear weapons both for professors, but people who are being called upon to work out the United States and the European allies." U.S. defense policy for a Bush administration. The memorandum warnsagainst any troop reductions in Western Europe. "Such reductions would increase NATO's Enter Henry Kissinger perceived reliance on nuclear weapons at a time when the It is not, therefore, too surprising to learn, from the New credibility of U. S. nuclear guarantees is being questioned by York Daily News on Sept. 9, that Bush had asked Henry the allies and their reduction negotiated with our main adver­ Kissinger to serve as co-chairman of a "national security task sary." The memorandum also urges the U. S. governmentto force" for his presidential campaign. Sources close to the "regain the initiative from Mr. Gorbachov and reassert lead­ Bush campaign say that Kissinger has accepted, in principle. ership in the midst of an unfolding Soviet diplomatic offen­ The other co-chairman is expected to be former Defense sive," by encouraging new NATO proposals for assymetrical Secretary Melvin Laird, one of the endorsers of the cited conventional reductions to diminish the danger of a Soviet memorandum. invasion. It furthermore calls for an upgrading of NATO This move may say more about Bush defense policy than conventional forces through more equipment and appropriate all of his stump speeches taken together. Kissinger, the bane training, particularly for reserve forces; improved deploy­ of conservative Republicans and pro-defense patriots in this ments; aircraft shelters; unobtrusive but effective barriers to country and abroad, was involved in setting up every rotten armored forces; and adequate stockpiles of munitions and agreement that the United States has made with the Soviet other supplies. Union during the last 18 years. He negotiated the ABM The memorandum suggests relaxing some inhibitions that treaty, which has been used by every opponent of the SDI to NATO has placed on its own deployments, such as: no early prevent SDI deployment. He negotiated the SALT- l treaty, use of nuclear weapons, no fixed defenses along the inner­ which allowed the Soviet Union to deploy heavier missiles German border, a doctrine of forward defense not matched than those fieldedby the United States, as well as the SALT- by forward deployments, and reluctance to plan for ground 2 treaty which President Reagan has denounced as "fatally counterattacks across the border even after a Warsaw Pact flawed." With Kissinger in any type of powerful advisory attack. These inhibitions, says the report, "combine to add position, you can be sure that the SDI will be doomed. greatly to the difficultiesof successful defense." In the same Daily News article, reference is made to The memorandum reemphasizes the need for the tradi­ Bush's backing away from Reagan's "total shield" concept tional NATO deterrent triad: conventional and theater nucle­ of SDI, to some form of point defense system. Bush believes ar forces, and a modernizedand "appropriately configured" that such a shield would be so costly that it would strip the U.S. arsenal of strategic weapons. nation's existing armed forces of their procurement budgets. A number of key issues were, however, strikingly leftout Bush came to that position, says the Daily News, after con­ of the group's discussion. No mention whatsoever was made sulting with Brent Scowcroft, national security adviser to of the Strategic Defense Initiative, which is one of the most Gerald Ford, and also a signer of the "working memoran­ criticalmilitary and political issues for the future of NATO. dum." For all its useful elements, this memorandum could as well The Kissinger appointment ought to make it clear to the have been written before President Reagan launched the SDI pro-defense elements who support Bush as the "lesser of two in 1983, or before anyone knew what a laser weapon was. evils," that the SDI is going to go down the tubes with Bush, Many of the former department heads who endorsed the unless the gang of appeasers that he's threatening to bring in report were themselves integral in working out the doctrine is brought under control, and quickly. Another difficult, but of Mutually Assured Destruction-thedoctrine that the SDI more fundamental, problem will be to create the economic abrogates-and in whose name some of the endorsers ac­ potential for making the SDI a feasible option, by reintrod­ tually helped to significantly undermine U. S. military poten­ ucing dirigist Hamiltonian policies as the booster for rebuild­ tial. ing the industries that can make the SDI work. Only one Nor does the memorandum mention the role of pre-war presidential candidate has a plan for doing that: independent deployments of Soviet spetsnaz operatives in the West, armed Democrat Lyndon H. LaRouche, k

EIR September 16, 1988 National 57 Interview: Admiral Daniel Murphy

Former head calls NNBIS for all-out war on drugs

On Sept. 7, EIR counterintelligence editor Jeffrey Steinberg get the problem solved. and staff writer Scott Thompson interviewed Adm. Daniel Now, Bush has decided to make [Senator] Quayle his Murphy, USN (ret.) at his Washington, D.C. offi ces. Admiral drug czar responsible for all four prongs. We haven't had Murphy headed the Reagan administration's National Nar­ that up to now. And, I got beat around the head and shoulders, cotics Border Interdiction System (NNBIS) from 1982-85. why didn't you do it, if you think it's so brilliant. Well, I Prior to and during his tenure 1981-85 at NNB/S, he was think it's brilliant today. In hindsight, you're always smarter chief of staffto Vice President George Bush. Admiral Murphy and you're still not too late to do something about it. earlier served as Deputy Director of the CIA (1976-77) and I view the war on drugs as a war that we have not been as Deputy· Undersecretary of Defense fo r Policy (1977-81) winning. But if we hadn't fought it at all, we'd probably be fo llowing a lengthy career in the U.S. Navy . a lot worse off. I compared it in my congressional testimony to World War II in the Pacific. We'd got our heads handed to EIR: You testified recently before a House Foreign Rela­ us in the beginning, but we regrouped, got more equipment tions subcommittee that you would bring the military into a out there, and we finally turned it around and beat the hell much more ambitious war on drugs, advocating, among other out of them. But, we didn't stand still. We had to accept the things, the bombing of drug fields, laboratories, and airfields fact that we were not winning and do something more about servicing the drug cartel. Would you elaborate on your pro­ it. Well, that's where we are today. posals for a comprehensive war on drugs? Murphy: It's a four-pronged program. We have to look at EIR: In the past, you served George Bush as one of his chief the source, and see what you can do to eradicate it there . advisers on the war on drugs. Do you believe that the Vice Nothing's ever going to be 100% perfect. So some of the President agrees with the approach that you have just out­ drugs get out anyway, and then you go to interdiction and try lined, and how vigorously will he pursue the war on drugs if to pick it up from the high seas or in the air. And that's not he is elected in November? 100%. Then you go to your in-country law enforcement, Murphy: I think Bush, as Commander-in-Chief, sees it that where you take down the infrastructure. We're doing that way and has plans for each of those areas. Go back to the pretty well today, but the 13 Organized Crime Task Forces source. He's willing to help any sovereign leader who wants that the Justice Department has in the country, that's where the help. He's also willing to try to persuade them they need we may need some beefing up . Finally, and perhaps more the help. 1988 is much different than 1982. In '82 the re­ importantly-it probably should have been number one­ sponse you got was awful: "That's your damn problem. You this is a social problem in the United States that could be stop using the stuff and my problem will go away." You solved if everybody decided they wouldn't take drugs. So don't get that response anymore among Latin American lead­ you have to educate the people, you have to rehabilitate them, ers, because they're having their people killed, their govern­ and you also have to look for a way to get into the cities. ments destabilized, their own people starting to use drugs. These are kids who are dropouts who are pushing the stuff So it's starting to be more of a problem that concerns them right here in Washington, so your nice educational program internally; therefore , they're more inclined to listen to offers out in Montgomery County [suburban Maryland] isn't going of help from outside. to effectthem one bit. You've got to come up with some plan I realize that running air strikes on the drug barons sounds to do something about this for those kids (nine year olds) in extreme, but to me that's a lot safer than sending men in there the street. You have to do all four of these things. If you just in helicopters and trying to have them land in the salt. And, concentrate on the one or part of one, you're never going to when you're out there in the badlands, the central govern-

58 National EIR September 16, 1988 ments don't even have any control. They can't even go in three or four months, the next time you come up for appro­ there themselves. So why not send an A-6 in there with a priations before Congress, the Armed:Forces Committee will smart bomb and put it right through his bedroom window. say, "Hey, that destroyer was never usedfor what we appro­ That's the way I look at it, if the sovereign country is willing priated the money, and therefore I don't think you need that." to do it. At least you give them the option, and they might We've lived all our lives under those conditions. You have say: "Well, fine, ifl can't get in there anyway. Take out their to stick by the justification that you presented to Congress, labs. Take out their runway. Take out their mansions." And or you lose it. The next time you dOlt't have that destroyer. you do it with a simple air strike with U.S. military forces. And, the truth is that they are committed. They aren't lying. We've got the smart weapons . Some people say: "Well, I I went out to SAC and went over the missionon everyAWACS might like that if you could tum it over to the Colombian Air that they owned and I did the same with the E2-Cs, and I Force." Well, that's a big training program: getting the right know that they don't have planes sitting around to do this aircraftthat can handle the weapons systems, the fire control kind of a job. systems that go with it, and the training of the pilot and all. So, the answer is that the Commander-in-Chief says to We have the capability in hand right now, sitting around the Chairman of the Joint Chiefs: Well ,let's relax your re­ waiting for World War III or the next mini-crisis. quirements in some areas for a certain period of time. You First, George Bush, when he gets in, is going to have a come back and tell me. You figureout how to solve the drug summit of all the regional Presidents . I guess very similar to problem, what forces it would take. You go look and you see what they have just done with these 30 nations. I don't think where they are . You come back and tell me what kind of it should just be limited to Latin America. European nations commitments you have to relax and for how long, so you can are facing the same drug problems, and they ought to con­ take those forces and carry out the plan that you've just tribute, too. The summit, in my mind, would be Latin Amer­ designed. You're giving responsibility to the military, not ican nations plus the top European nations that have the the other way around, where you say,i" Gee, I want to borrow problem and maybe even Japan. And, lay all of this out on two E2-Cs for a week." It's not the military's responsibility the table: Here's our capability, here's your problem, here's to fightthe drug war by this nickle-diming, persuading, and how we can do it, and offer them that kind of help. In helping pleading. They would like to be able to help knock out the them take down the drug lords, we might issue them extra drugs, but they do have responsibilities that we as American equipment and eradicate the crop. We've just developed a citizens have given them, that Congress has appropriated new defoliant here that will knock out cocaine. We never had money for them to do. They can't do both. So, I think Car­ one before. They may need more equipment-helicopters lucci's absolutely right, because they don't have the forces and jeeps and trucks-which we can provide. So, the source to do that and everything else you told them to do. So, the country has the help it needs to try to take down the kingpins Commander-in-Chief has to decide what they can do. and also eradicate the crop. The second thing they object to is the posse comitatus. It would be better to have the United States military, who Historically, our country has never used the military forlaw know how to fight these kind of wars, who have the equip­ enforcement. We think that's probably the right approach. I ment, who have the trained men and the leadership to do it, certainly agree with them on that, but you don't have to, in play a pivotal role in the war on drugs, and let everybody else my mind, even change posse comitaeus. What you do is take help the military play their appointed role instead of nickle­ the existing law enforcement people that you have, and you and-diming them to death . The common experience today is spread them around. You distributethem among the military to have some other federal agency come to the Pentagon units that you have, that are going to be coming in direct asking, "Could you loan me an AWACS next week?" The contact with the drug people, and the military just holds the military don't like that, and I wouldn't have liked it either. gun on them. The law enforcement officer comes in and does the arrest and all the hands-on relationship with the criminal. EIR: Is that the basis for the resistance within the military And, you still keep the military-even though they are on to their inclusion within the War on Drugs? I know that you the scene-you keep them isolated from the bad guy. Now, had triedto bring both the military and the intelligence com­ you could do that today without changing posse comitatus. munity into closer coordination. It seemed like there were Now, let's give an example in Colombia. Colombia must some people who were resisting it, but the issue was never have a hundred illegal and legal air strips, and these guys­ clear. the bad guys and the good guys-are free to take off from Murphy: Well, there are two issues for the military. One is there and head up to the Bahamas. So, the firstthing you do that they are already committed. The forces that they have­ through this summit meeting is decide that no aircraft are the forces that Congress has appropriated the money for­ allowed on an international flight unless they depart from were justifiedunder very specificcommitments . Now, if you Airports A and B. Have a court decide whether that's feasible take this destroyer that you said you needed for the Sixth or not, but I thinkthat it probably is. So, some guy takes off Fleet, and then you go down and let them play drug war for from some mountain strip up there iin cocaine country and

EIR September 16, 1988 National 59 flies directly out. And, you 're out there with your radar on a users , but that we could not handle the load . Some guy comes big carrier with Aegis that can track everything that moves . through Kennedy Airport , and he has one marijuana ciga­ You'll see it coming out. If he doesn't land at Airport A for rette . They take it away from him and let him go . They just his clearance and a shakedown, go after him. can't take the time. The guy coming behind him may be Now , you've got a tough call. First of all, we have high­ coming with a thousand pounds of cocaine. And, so, it was performance aircraft . It's not too easy to actually track and a sort of a practical type of approach, which , again in hind­ intercept these slow-flying OC-6s, but that's something they'll sight, I wouldn't say was wrong . But, it hasn't done much to have to work out. They've got other aircraft if necessary . For stop the use of drugs. So, there are lots of things you can do. this aircraft carrier, you load it up with the best aircraft that You can confiscate their property , which New York is already are available for that kind of work. Now , you can shoot it doing. You can do more in the way of publicizing drug users down . My good friend in Customs would say you should do that you pick up . It's been used with prostitution . You have that. Or, you give them a shot across the bow and give them some young, successful law�r in town, who goes down and the international signal to turnback . Or, you try to track them buys cocaine and gets nailed and gets his picture in the Wash­ and have forces up the Caribbean to pick them up . I mean a ington Post the next morning. I'd say he's in a lot of trouble plane from Customs might come out and just trade off and business-wise. And you have to hold them accountable. Here stay with them until he lands . Now , you hope that the country again, confiscation of property and sentencing. in which he lands is going to cooperate with us as much as Well, each problem leads to another problem. Where are the Colombians are cooperating, and then you've got the guy. the judges, the prosecutors , the jails to take care of that? We But, you will sort out the traffic very quickly . ran into that dilemma in Florida. The same problem . So, And, you do the same thing in Mexico. And, you require Vice President Bush went to the Chief Justice and got more that aircraft coming out of Mexico have to come out of des­ federal judges for South Florida. And, he increased the num­ ignated airfields. And, then you do the same thing with your ber ofprosecutors. And, we got good prosecutors . We didn't backup interceptors along the U. S. border. get kids out of law school. We went around the country and Shoot them down, as [U.S. Customs chief] Von Raab begged, borrowed, and stole top-notch prosecutors-already would do? It's a tough call. These are more political than trained. You can't always do that, but you do the best you they are tactical . Or, you go through the same routine. And, can. if you have enough forces , I think in very short order you've So, jails. It looks like we can-with the cooperation of shut those corridors down. Next, they are going to go through all hands-use military bases that are not needed anymore the Pacific. So you have to do the same thing there . When and convert them into jail space . I've even thought of decom­ you shut it all down, they are going to go through Brazil. The missioned ships, which we've got thousands of. I don't know drug traffickers are not going to quit on you. how much that would cost; it would be expensive. But, you could do that. Just anchor them out someplace. Put drug EIR: How do you see the role of traditional law enforcement pushers in those kinds of qulUters . You could solve the jail in the war on drugs? shortage without having to simply build brand new jails. Murphy: Law enforcement, I think, involves an increased So, that's the law enforcement part of it. Judges: There penalty for both users and pushers . I'm in favor of the death are judges that are retired that could probably help. Prose­ penalty for the kingpin: tough to define, but I think the courts cutors: There definitely is a problem, because I saw it happen can define that. The President of the United States doesn't in Florida where the civil cases stood around waiting and have to define "kingpin." You have to standardize to a much waiting and waiting , because we had so many criminal cases greater degree , throughout our country , sentencing by our that were taking priority. judges. You certainly have to standardize and be tougher on And, then, the final challenge: trying to do something the parole side. And, there are probably other law enforce­ about the usage of drugs . We need more education in schools. ment issues. Maybe we could use more of the Organized The disadvantaged children in the inner cities need help. Crime Task Forces, who have been very successful in bring­ They are getting $2,500 a day . It's kind of hard to convince ing down the infrastructure . I think they also need a backup, a nine-year-old that there 's something bad about what he's because they always have this funnel effect where they get doing. He doesn't see the bad part of it until he gets killed. overloaded. There are lesser crimes that are not going to make So that has to be attacked. It would be nice if there were some it all the way through the Organized Crime Task Force , but way to take those youngsters and in a voluntary way put them you can have subgroups of those that can handle the less in a re-training area where tqey have to go back to school, important cases and not let them get away with it. give them an education on why this is all bad, and, at the Then, the big thing in Bush's thinking is targeting the same time, see if you can't tum them back out as decent user. We have to admit that we have let the user off the hook citizens. Now, that probably sounds unworkable, because, if in this country . We never have really gone after the user. a kid is making $2,500 a day, he's going to go over the fe nce And the reason was not that we were trying to be easy on the first day he's there . But then you get hard-nosed. You

60 National EIR September 16, 1988 say, okay, look, we have a program here that is compassion­ narco-terrorism as a prime national security threat, this was ate and maybe it will work, but if you go back over the fence, the context in which a greater rolefor the militarywas called the next time you go back to reform school. So, it's training, for . The next step is to raise the issue of the actual authorship rehabilitation, but it has to have sanction. of some of the drug trade. There have been several recent The reason why the military have been successful in books and magazine articles written, which have used docu­ cleaning up drugs isn't just because of the testing. Testing mentation provided by Soviet defectors and drug enforce­ alone doesn't do a damn thing. You have to have the sanction ment personnel who investigated cases where there was Cu­ of throwing the guy out with a dishonorable discharge. That's ban and Nicaraguan involvement. From your experience at thesanction . I've seen it work. But, testing is going to have NNBIS and other experiences that you may have had, do you to be used more. Certainly the federal government can show see a link between the irregular warfare dimension of what the way: at least insisting on testing in certain areas . Certainly the Soviets are doing worldwide and this increased prolifer­ the transportation, areas of safety, areas of national security, ation of drug trafficking that the U.S. and our NATO allies and also areas of federal housing (where you have some in Europe seem to be the victims of. control) and have sanctions. Then, you have an education Murphy: I never did see any linkage in the intelligence that program. Major businesses that want a drug-free workplace I had available to me. So, I really have no views on that at will have to help. Maybe that could be done without passing all. It's not something we should be oblivious to; we should new laws. A lot oftesting is going on right now in the Fortune watch that. 500without any laws or anything else. So, that's a long answer to generally how you approach EIR: Well, Colombia has been plunged into near civil war it. And, you put one guy in charge. And, this will be a by narco-terroristgroups thatare connected with either Cuba situation of continuous adjustment, because each one of these or the Soviet Union. Similarly, there are Soviet ties to the will change right under you as you go after it, particularly Shining Path in Peru. These narco-terrorist groups are either going afterthe supply side. running protection for the traffickers, or else trafficking themselves to buy weapons for their terrorism. EIR: When the President's Blue Ribbon Commission on Murphy: Well, you have to analyze the intelligence. I looked Organized Crime finally sat down to writing reports , it was very closely at the time to the Cuban connection, and I found their view that the very first question that had to be tackled the evidence to be very shallow. But, somewhere in there, was the issue of money laundering and the presence of crim­ there is an arms and drugs linkage. And, the arms are not for inal revenues within the economy. I think probably the best any other purpose than destabilizing existing governments estimates coming out of DEA and State Department in the like the case of the [Colombian] M-19. So, if it's going on, I last year or so indicate minimally $300-500 billion a year in just never have seen what I consider to be evidence of it the total global network of the drug trade . Clearly much of sufficient to take action. That doesn't mean it isn't there . that money in some way or other passes through the U. S. They're still digging, and, maybe, since I left-it's been economy, boththrough the sales at the retail end and through three years-that they may have more intelligence on it. the laundering. Since there are already existing laws on the I findit a little bit difficultto blame an outside country for books that provide for the seizures of assets from organized the voluntary use of drugs in our country. There are only crime organizations, what do you think about placing a great­ about 20 million people involved in drugs out of 240 or 250 er spotlight on the money laundering end and therefore being million people. These people, in my mind are abetting the in a position to seize the cash assets, that might then be used enemy. They are using their money-perhaps a $100billion , to finance the additional costs of a broad, ambitious war on or more based upon your figures-to support an enemy. So drugs such as you are talking about. I see the culprit to be ourselves: those20 million. And, if it's Murphy: We did run a lot in South Florida on money laun­ even worse, as you are implying, that other forces are in­ dering, under the guidance of the IRS, and it was quite suc­ volVed here hoping to undermine our country, then their cessful. We closed down some banks. As I recall seizure crime is even worse. This is what we have to convince people laws already apply to money launderers, and so, you're ab­ of. That they are-every time they spend their money­ solutely right. But, I think that's a subject that needs to be aiding and abetting an enemy that's trying to destroy us. studied. I'm not an expert at it. There may be ways of chang­ Whether the Soviets are involved in it or Cuba's involved in ing banking laws relating to the electronic transfer of funds it, the fact is that these drug lords are the ones who are under certain circumstances which would really wipe these destroying our country. We saw it way back in history with guys out, or make it very, very difficultfor them. So, I agree China. it's a whole area andI think we probably need more analysis. The drug traffickers have analyzed it. EIR: You brought in the intelligence community for the first time. Did the involvement of the CIA and other agencies lead EIR: In the National Security Decision Directive defining to dividends?

EIR September 16, 1988 National 61 Murphy: Well , I think the dividends were beginning by the Dukakis is elected President? You've served in both Repub­ time I left. I was surprised to see the testimony just before lican and Democratic administrations. mine on the Kerry [Senate] Committee, where [DEA head] Murphy: Well, I hate to get to talk in terms of winning . Jack Lawn said that he hadn't gotten anything from the CIA. Some wars go on a long time. Bush has been on record right And, I testified that I found that statement bewildering, be­ since the beginning saying that there was nothing he could cause it's there , it's available to him. Intelligence is the heart do overnight and he knew the enemy would be reacting and of the whole problem: to know what the other guy is doing . he would be counter-reacting, so that it takes a long time. I'd Good strategic intelligence, as opposed to tactical intelli­ say the priority of getting on top of the drug problem-I'm gence. If you enact that plan I was just talking about, I want not going to define "getting on top of'-is very, very high to know quickly how the drug cartel down there in Colombia under Bush, and, I'd think it would just languish under Du­ is reacting . Are they going to continue pressing us? Are they kakis. This is just based on what I've read of his statements going to fight their way through our augmented lines of de­ and the areas that Dukakis appears to be oblivious to. fense? Are they going to divert? You want to know how the Bush is already on record in his speeches. He will also enemy is going to react to your tactics and your strategy. call a governors ' conference fast. He's going to say: "This is And, that's really strategic intelligence: the intentions. It's not just a federal problem, gentlemen. We've got to have very tough to get, but that doesn't mean you don't go after it. help at the state level." And, the governors' group has a So, one is trying to help collect more intelligence and subgroup on drugs. And, I think that you'll see some fast also to use all of our fantastic collection capability. Now , the action . A lot of the things that I just ticked off as a Bush drug problem here is that Jack Lawn, for instance take the top guy plan are at the state level. I meanthings like having somebody in the DEA , he doesn't have clearance for all of the stuff that in every school trained in detecting drugs. The federal gov­ I'm talking about. There's no way that he's going to know ernmentca n't be looked to to do that. You have to have these what the capability of the United States is to collect intelli­ states do that. So a lot of the things I was talking about are gence. If you don't know, you don't ask. I mean you're not actions to be taken by the state government. So, you hit it in going to ask for something that sounds like Buck Rogers . It a governors ' conference quickly in February and the summit never would dawn on you . It wouldn't enter your head . The meeting would probably follow shortly after that. It would guys over here know all of this stuff, but they are not very be very nice to tell the heads of other governmentsthe actions familiar with what Jack Lawn's needs are . It made sense to that you've got under way in your own country. I think that's get these guys together. You don't have to tell Jack what your already in his mental schedule, if he doesn't have it written capabilities are , if you don't want him to know. But, you can down somewhere. He's a man who knows the problem, al­ certainly findout what his needs are and you then know what though he will tum it over to his vice president on a day-to­ you can do . day basis. Bush will be on top of that on a week-by-week I was in an interesting position, because I knew both basis. sides. It was rather an enviable position to be in. Not that CIA was doing that, but they knew damn well that they EIR: So there will be a drug czar, and it will be the vice couldn't say that they couldn't collect Elint or some imagery . president? So, that was a match that we tried to create and I thought we Murphy: He's already announced that. were creating it. The third thing was that law enforcement people do not EIR: One final question. During your recent congressional understand intelligence the way a military guy does. There's testimony, you were asked about your several recent trips to a tendency to catalogue so you c� call in and you can check Panama and your discussions with General Noriega. Can you a license plate , you can check my name to see whether I'm comment on the recent drug-trafficking indictment against on some list, you can check the number on an aircraft or a . General Noriega and the charges that Vice President Bush ship. It's sort of a Sears Roebuck catalogue-type thing , that sat on evidence of Noriega's drug involvement? you can get in the machine and get it fast. Well , that's in my Murphy: I can tell you thatduring my entiretenure at NNBIS mind, a small part of intelligence. So there was a sort of and earlier with the South Florida Task Force, I never saw educational process needed here . We were using CIA people any intelligence suggesting General Noriega's involvement as trainers. We sent them to all these NNBIS centers and to in the drug trade . In fact, we always held up Panama as the EPIC [El Paso Information Center] to try and give them a model in terms of cooperation with the United States on the broader understanding of what intelligence really is and then , war on drugs. Remember that a grand jury indictment in this from that, a better understanding of what intelligence could country is not a conviction. If the case ever comes to trial, I do for them. will look at the evidence and thejur y's findings, but until that happens, I have no first-hand evidence whatsoever of the EIR: Could you summarize the future prospects ofa War on general's involvement. My experience ran in the opposite Drugs if George Bush is elected President or if Michael direction.

62 National EIR September 16, 1988 Friends in high places

Part 2 oj a series on the secret govemment qfMi chael Dukakis in Massachusetts, by an EIR investigative team.

Part 1 of this article fo cused on Michael Dukakis's use of investigating charges of"cronyism" surroundingthe Dukakis executive privilege in order to prevent access to information administration's selection of New Braintree, Massachusetts that might be politically damaging to him. The second part as the site to build a medium-security prison. The charges examines how the unusual relationship between Dukakisand centered on allegations by New Braintree residents that the high-level state andfe deral law enforcement offi cials serves administration had provided insider information to Dr. Gary that same purpose. Jacobsen and real estate developer Dani"l Striar about their intention to purchase that site. Before the selection was made Howie Carr, Boston Herald columnist and long-time critic public, the charges continued, Jacobsen and Striar used that of Massachusetts Gov . Michael Dukakis, has a term for the information to purchase the land, which, when sold to the mutually beneficial political and financial relationships of state, would net them a several million-dollar profit. people in high places that seem to be the key to the Dukakis If true , the resulting scandal could have once and for all administration . He calls them "Funny Coincidences." destroyed Dukakis's otherwise undeserved reputation as a For example, says Carrin an Aug. 25 column, "Just look "squeaky clean" governorwho waged a one-man battle against at how [Dukakis intimate Paul] Brountas's law firm, Hale corruption. That the potential problem surrounding this issue and Dorr, transitioned William Weld from his job at the was known to Dukakis is demonstrated by its inclusion in the Justice Department into Hale and Dorr for a mere $200,000 "critical issues" memo written by Dukakis aides shortly after or so a year, ajob which of course had absolutely nothing to his announcement for President. do with Weld's subsequent testimony about Ed Meese before In fact, the problem had been plaguing the administration a congressional committee." for over a year, when the allegations were first made . Up He also finds it a "Funny Coincidence" that another Hale until June 1988, however, Dukakis had been able to limit the and Dorr protege, Massachusetts Attorney General James damage by denying his accusers access to documents on the Shannon, held back from indicting Dukakis's former educa­ matter, asserting executive privilege. tion secretary, Gerald Indelicato, on charges of fraud, until When the Washington Times latched onto the story, the after the Democratic primaries were over. Indelicato was entire affair threatened to blow up in the governor's face. later convicted, and is now serving 30 months in a Massa­ That did not occur, however. The scandal began to die down chusetts prisonwhile awaiting trial on other charges. when the Special Agent in Charge of the FBI's Boston office, An EIR investigation indicates that these incidents, and James Ahearn, confirmed that there was an inquiry into the others , indeed represent more than just a series of fu nny matter, but that Governor Dukakis was not a target of the coincidences. In particular, that investigation shows that Du­ investigation. It was finally put to rest, at least as far as the kakis has a broad array of more than passing acquaintances press was concerned, with a late-summer FBI announcement in important positions in federal and state law enforcement that the matter had been closed, and no wrongdoing found. circles. And those friends seem to help him out quite often. The FBI's unusual conduct in the whole affair, however, The potentially devastating political scandal surrounding the began to raise an entirely new set of questions from long­ New Braintree prison site is a case in point. time Dukakis watchers . Wasn't it unusual for the FBI to comment on an open investigation, and to state that the gov­ The New Braintree scandal ernor was not a target of the investigation? Wasn't it even The presidential campaign of Michael Dukakis was faced more unusual that, according to a statement issued by Jacob­ with a potentially crippling political scandal when, in June sen and Striar after the Washington Times story broke, "No 1988, the Washington Times broke the story that the FBI was records have been subpoenaed, no grand jury empaneled, no

EIR September 16, 1988 National 63 Dukakis administration officialformally questioned, and ab­ Dukakis circles and key officials at the United States Attor­ solutely no contact between the FBI and anyone working ney's officein Boston, dating back to the time when William with us on the sale of this land"? This, despite the fact that Weld was the U.S. Attorney. That would not be surprising, the FBI had claimed it had been questioning people on the as the two have known each other since the time that Dukakis matter since it opened its preliminary inquiry in March 1987. acted as Weld's supervisor at the law firmof Hill and Barlow. This was some investigation! It certainly appeared that It has long been alleged that Weld and Dukakis collabo­ the FBI was attempting to limit the damage caused to the rated in the politically motivated witchhunt against former Dukakis campaign by the investigation. But why would the Boston Mayor Kevin White. That witchhunt, which the Na­ FBI, in a Republican administration, supervised by a Repub­ tional Law Journal characterized as a "textbook example of lican AttorneyGeneral , Ed Meese, want to help Dukakis in a prosecutor misusing his power," destroyed White's career, any way at all? although he was legally exonerated. Weld, on the other hand, It became even more curious when the Washington Times. went on to the Justice Department, where he led the charge reporting on the closing of the investigation, quoted Boston against Attorney General Ed Meese, who was also legally U.S. Attorney Frank McNamara, a conservative Republican exonerated. Weld, on the other hand, as mentioned earlier, and Meese appointee, to the affect that he was unaware that ended up with a lucrative job at the law firm of Dukakis the investigation had been closed. According to this account, intimate Paul Brountas, Hale and DOrT. FBI headquarters was also unaware that the investigation had Other officialsof the U.S. Attorney's office, particularly been closed! those who were Weld proteges and who were displeased with Perhaps the matter is not so strange when one discovers the choice of Frank McNamara as his successor, were also that shortly after James Aheam became Special Agent in tapped. Charge of the Boston office in November 1986, his wife For example, Robert Mueller, Assistant U.S. Attorney Barbara, herself a former FBI agent, was hired by the Du­ under Weld and his successor Frank:McNamara, resigned his kakis administration for the newly created position of Chief position this past summer, ending up with a job at another of Investigations for the Department of Mental Health. She bastion of Dukakis supporters , his and Weld's old firm of left theFBI after her husband becameSpecial Agent in Charge Hill and Barlow. Previous to working for the Boston U.S. in November 1986, because the FBI policy fotbids one spouse Attorney's office, Mueller was a federal prosecutor in San from working for the other. Francisco. Coincidentally, the number-two man at the FBI's It was one month later that Mrs. Aheam was hired by the San Francisco officeat the time was James Aheam. Dukakis administration for a job that was never posted or More directly, Daniel Small, another veteran of the Weld opened to competition from other job-seekers . Moreover, U.S. Attorney's office who served as the Assistant U.S. upon her being hired, she was paid $719 a week for a post Attorney for white collar crime, left his post earlier in the with a management title normally paying $598 a week. Since year, prior to the end of the primary campaigns, to become then, she has been promoted several times and is currently the representative of the Dukakis campaign to the Democratic making $8 12 a week or a healthy $42,246 a year. National Committee. Interestingly, Mrs . Aheam is not the only relative of a top FBI official working among Dukakis circles. The sister of FBI second-in-command Jack Clogherty has a job as a secretary to Massachusetts Speaker of the House and Dukakis intimate George Keverian. Interestingly, Keverian has close Weekly EIR ties to media consultant Michael Goldman, who "coinciden­ tally" was hired by Jacobsen and Striar as a consultant and Audio Reports their spokesman. One of Goldman's functions was to help deal with a CasseHes demand by two state legislators, a Republican and Democrat, • News Analysis Reports for a legislative investigation of the New Braintree matter. • Exclusive Interviews The investigation never took place, since, afterbeing sent to languish in the Ways and Means Committee, it was decided $250/Year that it was a bad precedent to investigate the administration's siting procedures. Of course, that decision was made by a Make checks paya ble to: EIR News Service, P. O. Box 17390 Democratic-controlled House, whose Speaker was George Wa shington, D.C. 2004 1-0390 Keverian. Attn: Press

Weld, Dukakis, and the U.S. Attorney's office MasterCard and Visa Accepted. There also seems to be a fairly intimate relationship with

64 National EIR September 16, 1988 is thought to be Jimmy Carter,whose daughter Amy is widely rumored to be Hoffman's currentbedmate . The Playboy article had been hyped as a "devastating" expose of Bush's personal role in delaying the 1980 "October Surprise," the release of the American hostages held in Teh­ eran sought by Carter, in exchange for weapons shipments once the Reagan administration moved into the White House. Irangate fizzling The article is of interest only because it gets off the Contra angle and begins to zero in on what would seem to be some as election issue vulnerabilities that Bush and company have from their back­ channeling to the Iranians. by Herbert Quinde The article simply makes the point that from day one, the "secret government" inside the Reagan administration was locked into a deal to supply arms to the Ayatollah, as EIR has Since the Atlanta convention, Democratic Party strategists regularly documented throughout the Reagan-Bush years. had been giggling with anticipation as they prepared for "The Two hours after his inauguration, Reagan announced that the Duke" to "nuke" George Bush with what they hoped would hostages had been freed. No one askedhow the release came be new hard-hitting revelations of the Vice President's in­ about, but it is clear that an earlier deal had been worked out. volvement in the Iran-Contra fiasco. Although they are hard The article quotes formerIranian President Abolhassan Bani­ at work, the complex of ideologically motivated anti-Bush, Sadr saying that he had access to cables, copies of which he Iran-Contrascandal-mongering reporters and "opposition re­ has offered to congressional investigators, allegedly proving search" campaign consultants, for the moment, seems caught that Bush was in Paris at the Hotel Raphael sometime in the in a time warp. fall of 1980, personally involved in the negotiations with Serious investigations aimed at exposing the "secret gov­ several Iranians, including Hashemi Rafsanjani, Ayatollah ernment" manipulation of U.S. foreign policy would be a Beheshti, Manucher Ghorbanifar, Cyrus Hashemi, and Al­ welcome contribution to a presidential race that has yet to bert Hakim. address substantive issues. Doubtful, but what's the big deal? The Carter administra­ With the Ollie North trial postponed until after election tion was offering the same deal, and evidence previously day, the Democrats have no ready-made forum. There is no published by EIR suggests that Khomeini assassins were new "smoking gun," and in frustration, the strategy is to allowed to kill anti-Khomeini exile Ali Tabatabai in Wash­ rework old material, hopefully with new twists. One consti­ ington, D.C. as part of the negotiations. pated journalist writing in The Nation dedicates an entire article to rehashing allegations of Bush's links to the inter­ A Mexican standoff? national drug trade, defensively explaining why the search Those who live in glass houses ....It was a Democratic for the "smoking gun" is a waste of time. administration that established the policy of negotiating with A Washington journalist, widely respected as a tenacious a fanatical terroristregime which was continued by a "secret Irangate investigator, admitted, "If the Democrats had any­ government" within the Reagan administration. It was under thing, they would have already gone with it." One hardened a Democratic President, Jimmy Carter, that the Central In­ cadre of the liberal-leftcommunity commented, "A year ago, telligence Agency, then headed by the liberal Adm. Stans­ Irangate represented a constitutional crisis; now, even in an fieldTurner, toppled the Shah of Iran and eventually brought election year, nothing seems to shock the moral sensibilities Khomeini to power. It was Carter's National Security Advis­ of the American public." er, Zbigniew Brzezinski, who said, "Islamic fundamentalism Nonetheless, Governor Dukakis seemingly went on the is a bulwark against communism." It was Secretary of State attack in a recent campaign speech, again raising the ques­ Cyrus Vance, a senior member of the ,Establishment, and his tion, "Where was George?" when Project Democracy was men at the State Department who were selling Khomeini as baking cakes for and arming the terroristregime of Ayatollah an "American asset" as early as 1978. Khomeini. Will the story go any further? Only if the Democrats figureout how to damage-control their end of the deal. Bunnies to the rescue Dukakis could take a chance. He could say, "Yes, Carter Providing artillery support for the assault is an article in played the game also, but I never will." But hanging out a thewidely "read" October issue of Playboy magazine written Democratic President to dry like that opens a Pandora's box by none other than "investigative reporter" Abbie Hoffman, which the liberal Establishment doesn't need just now, as the the burned out hippie and founder of the pro-drug 1960s opposition grows to their appeasement of the other Michael Yippies anarchist grouplet. The source of Hoffman's claims at the Kremlin. So, it looks like a Mexican stand-off.

EIR September 16, 1988 National 65 Elephants & Donkeys by Kathleen Klenetsky

Apparently, Dukakis is looking for In the past, Dukakis has ridiculed help wherever he can get it. His 17- the SDI as a "fantasy" and demanded point lead coming out of the Atlanta that "Star Wars" be replaced by "star convention has evaporated. Accord­ schools." Duke revs up dirty ing to a new Time magazine poll, Du­ Although he may be trying to kakis is trailing George Bush by five sound more moderate on the issue now, tricks apparatus points (42% to 47%). And even in his judging by the amount of money he Michael Dukakis'sdecision, in thelast home state of Massachusetts, several thinks SOl should get shows that his week in August, to rehire former aide recent polls show him running neck­ "support" for the SDI is election-year John Sasso for a top post in his cam­ to-neck with the Republican candi­ deep. He announced that he's pre­ paign signals that the Duke has decid­ date. pared to spend no more than a paltry ed that the only way to revive his $1 billion a year-the approximate floundering campaign is by getting its fundinglevels devoted to strategic de­ dirty-tricks capability in high gear. fenseduringthe Carteryears-on SOl. Sasso was firedfrom the campaign Dukakis defensive last fall, after it came out that he was on military policy responsible for the so-called "attack Bush fires aide for video" which drove one of Dukakis's Dukakis's predicament is due in part key rivals, Sen. Joe Biden, out of the to his espousal of the "McGovern supporting Demjanjuk presidential race. Democrats" left-liberal foreign and Bush campaign spokesman Mark That wasn't some one-time strategic policy agenda. His cynical Goodin announced on Sept. 8 that Jer­ "youthful indiscretion," as Dukakis pitch to voters that the U.S. should ome Brentar, co-chairman of George would have people believe-but, in stop spending so much money on de­ Bush's ethnic outreach campaign fact, a pretty mild Sasso campaign fense, and startinvesting more in "hu­ committee, the Coalition of American tactic. man capital," hasn't worked-Amer­ Nationalities, had been fired because A more typical Sasso operation ican voters aren't quite as gullible as of his effortsto solicit support for John took place during Dukakis' s 1982 Dukakis and his advisers think. Demjanjuk, the former Cleveland au­ gubernatorial comeback bid. Sasso­ Meanwhile, the Republicans have toworker who was convicted in Israel who is widely credited with having focused on Dukakis's opposition to the in April of Nazi death-camp killings. orchestrated the successful cam­ MX, SOl, Midgetrnan, and other As EIR has documented, Demjanjuk paign-circulated a pornographic weapons systems to such great effect, was the victim of a frameupjointly run parody of a campaign commercial that Dukakis has been forced to mod­ by Israeli, Soviet, the U.S. Justice which incumbent Gov. Ed King's ify-at least rhetorically-some of his Departmentofficia ls. He is appealing wife, a polio victim, had made, dis­ more outrageous positions. the Israeli ruling. cussing how her husband helped her The first signs of a "new" alleg­ According to a report in the New fighther disease. edly pro-defense Dukakis came Sept. York Times on Sept. 9, Brentar com­ Sasso is no stranger to pornogra­ 8, when the candidate addressed an mented angrily on his dismissal: "I phy. He began his political career as American Legion convention in could have been an atheist. I could an aide to Rep. Gerry Studds, one of Louisville, Kentucky. The candidate have been a polygamist. I could have two openly homosexual congressmen told a news conference that he backs been anything else and questions from Massachusetts, and the only continued SOl research and might take wouldn't have been asked. And now congressman to have been . censured a second look at the anti-missile de­ because I helped a poor victim, I'm by his colleagues (in 1983) for sodo­ fense system. "If I and the Congress everything under the sun." my with a minor. That's just the kind make the judgment that it was essen­ Brentar's firing came afterJewish of experience Sasso needed when Du­ tial to our national security, then ob­ Week newspaper ran an article claim­ kakis lent him out to Geraldine Ferra­ viously I would do so," he said, add­ ing that he and two other Bush cam­ ro's 1984 vice presidential campaign, ing that "doing research is perfectly paign aides were anti-Semitic, a claim which fell apart afterrevelations link­ appropriate," and that "for our own picked up by five Democratic con­ ing her husband, John Zacarro, to an sake, we've got to continue the re­ gressmen, who demanded that Bush organized-crime pornography ring. search." fire theindividuals in question.

66 National EIR September 16, 1988 Washington by Nicholas F. Benton Eyeon

ceptance, and not by force. It requires known as "AmericaWat ch," was also trust, trust in the leadership to sacri­ there. fice. So, profound economic and po­ The conference focused almost litical changes are needed." entirely on political reforms , with He said that Solidarity's goal is to Chenoweth insisting, "I am not an get the Polish government to "resign economist," and thus that he was un­ from its totalitarian ambitions," and able to talk about how to redress the allow the existence of independent in­ demise of the Polish economy. u.S. helping Soviets stitutions, such as free trade unions. It He said only that the Solidarity sounded like he was advocating the union "is trying 110 unleash free enter­ cool out Poland kind of glasnost that Gorbachov would prise" with some small, locally based A spokesman for thePolish trade union like to implement in Poland. companies trying to produce consum­ Solidarity came to Washington, D.C. In other words, recognizing that er goods like computer software and Sept. 7 to meet with President Rea­ deepening the austerity will lead to houses. gan, as the year's second major strike mass unrest, the Gorbachov policy is Joshua Muravchik, an American wave in Poland began to wane. to defuse the situation by cosmetic EnterpriseInstitute senior fellow, said According to Polish officials, a moves to "democratize," in such a way that Solidarity "is seeking a social third wave, bigger than either of the that responsibility for the austerity is compact with the governmentto share two seen so far this year, is expected shared by institutions of "the people," the responsibility for austerity. " when the next big bite into Polish liv­ and thereby not simply blamed on a He mused that some of the U.S. ing standards will be taken in Decem­ totalitarian regime. taxpayers' dollars conduited into Po­ ber. As long as the focus of change is land throughthe NED have been used But while the strikes are being "political reform" rather than debt re­ to publish books like Milton Fried­ driven by mass ferment against aus­ lief and economic development, the man's Free to Choose-a book which terity, the visit of the Solidarity operation is aimed at forcing anti-aus­ ranks up there among history's most spokesm�n indicates that a faction in terity ferment into an even tighter eco­ disgusting fraud$, with Jeremy Ben­ the United States, working through the nomic straitjacket. tham's libertarian tracts defending National Endowment for Democracy, pederasty and usury. is working to help cool out the strikes, Chenoweth pointed out that the as desiredby Soviet General Secretary u.S. role in steering austerity in Poland now is so severe Gorbachov and the International that an average steelworker's wages Poland's dissent Monetary Fund (IMF) . can pay for only 15 meatless meals a I was surprised to findt hat the Sol­ According to Eric Chenoweth, the month for a family of four. idarity spokesman, Janusz Onisz­ former executive director of the Insti­ Nonetheless, he said, Solidarity kiewicz, after a short meeting with tute for Democracy in Eastern Eu­ has taken the position that it favors President Reagan, was not willing to rope, the U.S. Congress voted $1 mil­ loans from the IMF-despite the fact tell the press thatit is Poland's auster­ lion to go to free institutions in Poland that the conditions for repayment of ity which is driving the strike wave. last year. which was sent through the such loans has contributed to the re­ At a press conference on the White National Endowment for Democracy cent escalation of austerity-in ex­ House driveway, I asked him ifhe was (NED). change for "pluralism, influence and bothered by the fact that Poland was Among other things, this money a degree of political control." paying its debts on time to the IMF, at was used to organize a "human rights" Indeed, the Solidarity spokesman the expense of domestic living stan­ conference in Poland Aug. 15-21, atthe WhiteHouse said, "We aregoing dards. He ignored the part of my ques­ which was composed of peace and to need a stabilizing loan [from the tion about the debt payments, and re­ ecology groups, including one, known IMF] to help us go through the coming as Freedom and Peace, with close ties difficult period of economic readjust- plied that the cause of the unrest in , Poland is that austerity is being im­ to the Green Party of West Germany. ment." posed by a regime that the population Chenoweth led a delegation from It didn't sound much like his prior­ has lost trust in. "For austerity to the AFL-CIO in the United States, and ity is relieving the conditions that are work," he said, "it has to be by ac- another U.S. "human rights" group, forcing his countrymento strike.

EIR September 16, 1988 National 67 Congressional Closeup by William Jones

black people of South Africa. Already South Africa sanctions a threatthat the Congresswill beforced thousands of South African blacks introduced in Senate to pass another Continuing Resolu­ have lost jobs due to U.S. sanctions. Legislation sponsored by Sen. Paul tion, which would combine several of The House sanctions bill has also Simon (D-Ill.) and Sen. Alan Cran­ the bills. When President Reagan con­ helped to arouseSouth Africa's whites ston (D-Calif.) was introduced in the ceded to sign thelast Continuing Res­ to push for countersanctions to deny Senate on Sept. 8. The bill, almost olution at theend of last year,he vowed identical to one passed in the House in the United States strategic raw mate­ that he would not sign another one if rials. August, would require total disinvest­ it were to come to his desk. ment by U. S. companies and an end New legislation on abortionis one to almost all trade with that nation, bone of contention between the White allegedly for the purpose of pressuring House and the Senate. The abortion it to end apartheid. The sponsors made Amendment permits death issue is contained in the Senate ver­ it clear that they would not water down penalty in drug murders sion of an appropriations bill that pro­ the bill in hope of its passage. At the On Sept. 8, the House passed an vides money for the Departments of moment, the only Republican sup­ amendment introduced by Rep. Labor and Health and Human Ser­ porting the bill is Sen. Lowell Weick­ George Gekas (R-Pa.) which would vices. House and Senate negotiators er (R-Conn.). allow juries to impose the death pen­ have reached agreement on all other Secretary of State George Shultz alty for persons who kill in the course apects of the money bill, but could not has already expressed to Foreign Re­ of a drug-related felony. The amend­ resolve the abortion issue. President lations Committee chairman Sen. ment is attached to the Omnibus Drug Reagan has said that he will veto the Claiborne Pell (D-R.I.) the adminis­ Bill, and was passed 299-111. bill if it includes a section approving tration's strong opposition to the bill, Currently, the only federal crimes federal funds for abortion for victims and wanted this made known to other that carry a death sentence involve es­ of rape or incest. Democrats on the panel. If the bill is pionage by members of the armed ser­ Final action is expected on legis­ passed, it will most certainly be ve­ vices and aircrafthi jackings that result lation to implement the U.S.-Canada toed. Without more Republican sup­ in death. The Senate will take up the Free Trade agreement negotiated by port, the Democrats will not be able to bill sometime before Election Day. American and Canadian officials last override the veto. Simon and Cran­ year. The agreement would phase out ston said that they might also be faced tariffs between the two countries. with a filibusterfrom conservative Re­ The most contentious issue will publicans led by Sen. Jesse Helms (R­ C ongress pressed to undoubtedly be the Department of De­ N.C.). conclude business fense appropriations bill. President A Wall Street Journal editorial on The Congress has a series of measures Reagan earlier vetoed the DoD au­ the subject indicates that the "tough" which it will have to pass in the last thorization bill, since it provided too stance of the Congress on the issue of three weeks before the official ad­ little funds for the Strategic Defense sanctions may have just the opposite journment in the second week of Oc­ Initiative and unduly restricted the of the desired effects, by stirring up tober. There are 13 appropriations bills President's ability to conduct arms reactionary opposition in South Africa in various stages of completion. Two control policy. The Democrats are to the Botha government's reforms. of the 13 have been signed into law, considering attaching the vetoed de­ "Hard-line apartheid candidates for the and conferees have reached agree­ fense authorization bill to the defense October municipal elections are at­ ment on three other bills, which should appropriations bill, along with some tracting sympathetic crowds," says the soon come to the House floor for final controversial defenseprocurement re­ editorial, "with their attacks on the passage. forms . Reagan has threatened to veto government as a timid servant of the Eight otherfunding measures must the appropriations bill if it is not sub­ wealthy mining conglomerates. They still be worked out in House-Senate stantially different than the authori­ are demanding retaliation against conferences and passed by both cham­ zation bill. sanctions. " bers before Congress adjourns. It is not certain, however, whether The ones who will really bear the The intention is to pass each ap­ the Democrats would want to lace the burden of the sanctions policy are the propriation bill separately, but there is bill with amendments and additional

68 National EIR September 16, 1988 program restrictions that would pro­ Republicans will have to defend suc­ congressional districts and will be voke another veto by the President. cessfully all of their 12 w"umbents, challenging the Republican incum­ This would tend to sharpenthe differ­ win 5 of the 6 open seats, and oust at bents in November. ences between the two parties on the least 3 of the 15 sitting Democrats . Donald Hadley in the 5th issue of defense policy and could serve "It's ambitious, but realistic," said Congressional District in Pennsylva­ to hurt Dukakis in the presidential Boschwitz. nia will be aiming at unseating Repub­ campaign, adding grist to the mill of lican Richard Schulze. the Republican attacks on his liberal George Eldel1, in the 21st stance on defense issues. Congressional District in the former If Congress and the White House steel belt of Pennsylvania, will be tar­ cannot reach an agreement, money to geting the seat of Rep. Thomas Ridge, pending could exceed keep the Pentagon going into next year S a member of the HouseBanking Com­ could be included in a catchall spend­ Gramm-Rudman limits mittee and one of the key opponents ing bill, and would thus postpone the House and Senate negotiators will be of the Glass-Steaghll Amendment of hard decisions until a new Congress working under very tight constraints 1933. The comme�cial banks want to and administration can deal with the imposed by last year's budget agree­ eliminate Glass-Steagall, in order to issues next year. ment with the White House. While bring commercial bankinginto thevery spending limits have served to avoid volatile and risky areaof the securities protracteddebates on the money bills, markets, thus endugering thesavings they now present lawmakers with the of the depositors-and' Tom Ridge is , very real possibility of exceeding the theirboy . apitol Hill crawling C overall budget ceiling and forcing an Don Marquis in the 39th CD of with Russian spies' automatic spending cut that would af­ California will be working to unseat This was the remark made by Rep. fect a wide range of government pro­ Republican incum1;lent William Dan­ Trent Lott (R-Miss.), who is now run­ grams. nemeyer, and Mark Brown in the 12th ning for the seat of retiring Sen. John Officeof Management and Budget CD of Ohio is intent on replacing John Stennis (D-Miss.). He said it on sev­ director James Miller announced last Kasich as a U.S. congressman from eraloccas ions in 1985, pointing to their month that the bills signed since Aug. Columbus. presence on committee staffs and in 15 or about to be signed could put the office of at least one member. Lott Congress within a mere $700 million was confronted with his remarks on of triggering the automatic spending the campaign trail, and he refused to cuts. If Gramm-Rudman comes into back down from his statement. play, there will be cuts across the omoseXUal �ongressman Eyebrows were raised at liberal board, and many items would be H bits campaign trail fundraisers in the Capitol Hill area at placed in jeopardy. Rep. Barney Frank (D-Mass.) who the audacity of the Lott statements, acknowledged his homosexuality but the folks in Mississippi just might publicly last year is now going on the send old Trent up to the Senate for speakingcircuit. "telling it like it is. " On Sept. 8, he addressed the Les­ LaRouche Democrats bian and Gay Association at George­ challenge GOP incumbents town University Law Center on the In what look to be very promising future of the civil rights of homosex­ Republicans confident of campaigns, members of the National uals in the United States. more Senate seats Democratic Policy Committee, the Frank, who came out of the closet National Republican Senatorial Com­ political action committee of the inmid- 1987, helpec:lto create an "adult mittee chairman Rudy Boschwitz (R­ LaRouche wing of the party, associ­ entertainment" zone in Boston. In Minn.) said that he sees 12 to 15 of the ated with former Democratic presi­ Mike Dukakis's liberal paradise, 33 Senate races going either way. To dential candidate Lyndon LaRouche, nothing seems to be "banned in Bos­ retake the Senate, Boschwitz said, the have won their primaries in four ton" these days.

EIR September 16, 1988 National 69 National News

previously inspectedmigrant camps fulltime his home state of Massachusetts: will now be assigned to additional duties. • At St. Margaret's Hospital in the County Health Department spokesmen Dorchester area of Boston, 10% of newborn Minnesota court backs would acknowledge only an "indirect ef­ babies test positive for cocaine. fect" on the AIDS situation in the area, • The Roxbury-Dorchester neighbor­ 'grass tax' law claiming that the AIDS problem does not hood is being turned into a shooting gallery . The Minnesota Supreme Court has handed exist in the migrant labor camps as such, but The Boston Police Department reports that down a ruling upholding the state's pro­ in nearby boarding houses, which are not 34% of the homicides in the city in the first marijuana "grass tax" law, which is being inspected by the county health departments. six months of 1988 were drug-related, up hailed by proponents of drug legalization as 9% from the previous year. a model for the rest of the country . • Between Dukakis' s furlough system The 1986 law, the first in the country, for convicts and prison breakouts, the Mas­ provides that the state sell drug stamps to sachusetts correctional system has become drug pushers. Drug stamps can be purchased AIDS found rampant a "revolving door" for drug pushers. Dukak­ through the mail or at the state revenue de­ is has also pardoned 21 drug pushers in the partments at the price of $3.50 for each gram among runaway teens last four years, including cocaine and heroin of marijuana, or $200per gram of cocaine. There are now 20,000homeless or runaway distributors. According to the Supreme Court deci­ teens on the streets of New York City, the sion, revenue officials must guarantee con­ New York Post reported on Sept. 7, and, fidentialityto those buying stamps, in order, according to a survey conducted by Montef­ in the view of the court, to ensure that drug iore Medical Center's AIDS in Adolescence dealers are allowed the constitutional guar­ Program, AIDS is running rampant among Cap Weinberger sees this population. antee against self-incrimination. dangerous shift in U.S. At least 12 other states have already pat­ Covenant House and Montefiore Center terned laws after Minnesota's, the most re­ are testing teenagers for AIDS on a volun­ In an Aug. 12 interview with the British cent being Utah and Illinois, which imposed tary basis only, and so far, at Covenant Broadcasting Corporation, former U. S. De­ drug taxes this year. House, 30-40% are testing positive. fense Secretary Caspar Weinberger warned " According to Dr. James Kennedy, med­ about a very substantial, unfortunately ical directorof Covenant House, "These were substantial, isolationist, protectionist mood all sexually transmitted infections. There in the United States," and blamed Demo­ were no intravenous drug users in the test cratic presidential nominee Michael Dukak­ group. The significant thing is that we're is for exploiting this mood for political gain. Inspection of migrant seeing as many infected girls as we are in­ The shift in mood, Weinberger said, fected boys ....This is a very real issue "takes many forms. One of them is trying to labor camps cut back . . . they are acquiring and transmitting the find some rationalization for bringing the Inspection of migrant labor camps in Belle virus . . . . If you look at the overall number troops home. They can't find it in any im­ Glade, Florida and the surrounding area of of people we were seeing infected in the gay proved behavior in the Soviets or any less­ Palm Beach County will be cut in half, due community in 1979 and 1980, we're seeing ening of the basic Soviet threat, and so they to cutbacks in state fundingfor county health at least as many now in the street kid popu­ find it in some kind of complaint about Eu­ departments . The Florida state legislature lation." rope or Asia . . . not doing enough them­ has cut $5.5 million from health programs, selves. There's nothing that is going to help and the Palm Beach County budget will suf­ world security by bringing the American fer cuts of $600,000. troops home. The American troops serve a Belle Glade has one of the highest den­ very important purposefor our own country , sities of AIDS infection in the country, and Dukakis's 'war on and also for the allied countries, and I hope a particularly high density of "non-high-risk­ very much that the isolationist mood doesn't group" cases. drugs' called a sham ever reach a majority in the United The cutbacks in inspections for the area Democratic presidential nominee Michael States ....It 's very dangerous, it's very were admitted to EIR by a spokesman for Dukakis's war on drugs is "a sham," wrote unwelcome." the Palm Beach County Health Department, Boston Herald columnist Don Feder, in a He attacked "people like Mr. Dukakis, who also reported that the department has commentary on Sept. 1. Rejecting the Mas­ who continually talk about how it will be frozenhiring of new personnel as a result of sachusetts governor's criticism of the Rea­ safe for us to spend less on defense, to serve the cuts in state funding for certain pro­ gan-Bush war on drugs as hypocritical, Fed­ their own political purposes." grams . County Health Unit personnel who er goes on to examine the Dukakis record in Weinberger also attacked as "absolutely

70 National EIR September 16, 1988 Briefly

wrong" and "a commonly held myth," the presidential nominee Sen. Dan Quayle's critique that his pro-defense policies caused comments to the Washington Post the day the biggest budget deficit in American his­ before , attacking the myths in the West sur­ • DUKAKIS ON CHINA: Col­ tory. "The defense requests were repeatedly rounding Gorbachov. umnists Evans and Novak on Sept. 7 cut," he said. "They were cut by about $125 "As faras Gorbachov is concerned, he's quoted a speechby Michael Dukakis billion over the next five years from what new, he has a different approach to things, in Canton, P.R.C. in 1985: "I was a we actually needed. . . . The facts are that and his mannerisms and style are unfortu­ 13-year old boy at the Baker School defense in the United States added very sub­ nately pleasing to the West," Quayle said. in Brookline, and I was asked to de­ stantially to the military strength and deter­ "I say unfortunately, because I don't think bate changes in China. I delivered rentpower of the whole alliance. But it was from an ideological point of view he 's any a ringing condemnation of the Kuo­ also very good for the economy. " different from Brezhnev or anybody mintang, Chiang Kai-shek's Nation­ else ....I mean perestroikais nothing more alist party, and strongly advocated than refined Stalinism-kick their people revolution in China. So, you see, out and bring your people in." you have a friend here. In fact, Referring to Soviet handling of dissent some friends of President Reagan Ollie North wrecked in Eastern Europe, Quayle says: "Poland occasionally refer to Massachusetts doesn't look good right now." as the 'People's Republic of DEA anti-drug effort Massachusetts. ' " Lt. Col. Oliver North's sabotage of U.S. Drug Enforcement Administration plans to • WILLIAM WELD, formerhead destroy the Medellin cocaine cartel, was of the Justice Department's Criminal featured prominently in the Colombian New Mexico utility Division, closedthe DoJ' s inquiryinto newspaper El Espectador Aug . 30-31. The the assassinations of President John expose confirms ElR 's charge that North lays off800 employees F. Kennedy and the Rev. Martin Lu­ protected the cartel, because they were his Eight hundred employees have been laid off ther King. Weld, who resigned in partners in his operation to supply the Ni­ at Public Service Co. of New Mexico, in an March, wrote the House Judiciary caraguanContr as. effort by the utility to stave off financial Committee that all leads had been Using informant Adler Berriman Seal ruin. The utility has incurred$1 .2 billion in checked, finding "no persuasive evi­ (a.k.a. Barry Seal), the DEA had begun an debt since 1972, for their 10.2% sharein the dence" to support conspiracy theo­ operation to capture the chiefs of the Med­ three Palo Verde nuclear plant units. The ries. ellin Cartel . But the operation was blown, New Mexico Public Utility Commission has the newspaper charges, when North leaked not allowed a rate increase since 1984, and • THE ALL-MALE Bohemian the informationthat Seal had gathered to the the utility has already sold off its share of Club is under investigation for sex Washington Times, which published Seal's two of the three units, to raise funds. discrimination. If the investigation story on how the Sandinistas were involved Due to the collapse of industrial and finds discrimination against women, in the dope trade . commercial electricitygrowth since the bot­ the club could lose its liquor license. Because of the leak, the DEA operation ton fe ll out of the oil market five years ago, The exclusive Club, located 60 miles had to be suspended (it revealed the names the utility has been left with more capacity outside San Francisco, is the scene of and activitiesof the undercover DEA agents), than it has customers to sell the power to , bizarre cavortings and mid-summer the cartel members could not be captured, and has been trying to. sell its surplus exter­ nude theatrics I)y such international and the main man responsible for the oper­ nally. Limits to their power transmission notables as HenryKissinger and Hel­ ation, Barry Seal, was assassinated by cartel infrastructure have prevented them from mut Schmidt. murderers . doing so. A plan to restructure the company to be • FRANCIS L. YOUNG, an ad­ able to build the transmission lines and sell ministrativejudge withthe Drug En­ thepower has been withdrawn, due to inter­ forcement Administration, ro und that venor opposition, which has left the com­ "marijuana,in its natural form, is one Quayle: I don't trust pany unable to meet its financialpayments . of the safest therapeutically active The layoffs , according to the Albuquer­ smiling Gorbachov substances known to man." Judge que Tribune, will have an economic impact Young ruled that, "by any measure "I Don't Trust Smiling Mikhail, Says of about $40 million in the state, including of rational analysis, marijuanacan be Quayle," was the headline in the Daily Ex­ the loss of business by the families that are safely used within a supervised rou­ press of London Sept. 7, one of several pa­ affected. The utility has 4,000employees in tine of medical care. " pers in Europethat featured Republican vice- total.

EIR September 16, 1988 National 71 Editorial

When hunger reig ns

At the close of the Second World War, a horrified world concentration camps because of the callous disregard learned of the existence of Nazi death camps . These of all of us who fail to do battle for the sanctity of were the places where "useless eaters"-those too weak human life. to perform slave labor, or those like Jews and gypsies A like situation exists in the refusal of the United who were targeted for racial reasons-were starved to States Department of Agriculture to sell food to Iraq , death or killed outright. Jordan, Tunisia, and Egypt, because those countries Today at least 25 million people in Bangladesh, on cannot afford the rapidly escalating market prices. The the Indian subcontinent, are homeless. Much of that viciousness of this policy would appear to speak for nation 's capital city remains under water. Food sup­ itself, except that it is compounded by the willingness plies have been destroyed and water supplies contami­ of that same Department of Agriculture to subsidize nated. Yet the response of the nations of the world massive shipments of wheat and com at prices well remains pitifully inadequate . The prevailing "wisdom" below market values, to the Soviet Union. among world leaders and international bankers appears Just two days ago , the Soviets bought an additional to be that "realism" rather than sentiment is in order. 300,000 tons of grain from the United States. This This tragedy could have been averted or at the least brings total sales to the Soviets to above 2 million tons, ameliorated, had the proper flood control measures been with a like amount of com purchased by them . The taken, but how could a poor nation such as Bangladesh European Community (EC) has negotiated deals with support the cost? the Russians on a similar scale. Yet no food is now Lester Brown said it all in an editorial statement available to help millions of starving people in Bangla­ printed in the Sept. 8 edition of the Washington Post. desh and Sudan who have been the subject of natural His article was entitled: "Bring on the Family Plan­ disasters ! ners ." For malthusians, such as Brown, drought and Over the Labor Day weekend, a new organization, floodconditions are a welcome confirmation of his sce­ Food for Peace was formed in the United States, with nario for halving the popUlation of the globe through the support of farmers from tbjrty U. S. states and an brute-force methods such as famine and plague . international delegation including Europeans, Ibero­ Bangladesh's government has requested 3 million Americans, and Africans. tons of food as an immediate relief measure , and suffi­ This conference passed a number of resolutions cient seed to replant the present crop which has been guaranteed to expand present world food reserves, in destroyed by the flood waters . To date , only token order to counter the current adverse weather trends . It amounts of food have been sent in , to the amount of also called for emergency relief to Sudan and Bangla­ hundreds or thousands of tons at most. desh. Another case in point is the nation of Sudan in In the short term, there is sufficientfood to prevent Africa. Millions of political refugees had been living in the death of millions from starvation-if this food is camps which were destroyed by the recent floodsthere . not wantonly diverted to the U.S.S.R.-but over the Over the past three months over 3,000 people are re­ next immediate period, we face a dire international ported to have starved to death , and the death toll is food shortage . Food for Peace must become the rallying continuing to rise. Many, in particular children, are cry of a worldwide organizing campaign, whose pur­ simply too weak to travel the one-and-a-quarter mile pose will be to ensure that the production and distribu­ trip to the area where food is distributed; these are tion of world food supplies is given the highest priority , simply left to die of hunger. in order to prevent famine fromonce again stalking this In other words , whole nations are being turned into earth .

72 National ElK September 16, 1988 What Michael Dukakis' s personal physician did not report . . . You Dukakis's mental health: an 'objective assessment can read EIR 's 16-page supplement begins with Lyndon laRouche's article, "I never claimed Dukakls had been cured." It includes: a profile of the historical parallel between Dukakis and Mussollni; the leaflet that started the controversy, and the full docu­ for $2! mentation to substantiate it; the case of Stelian Dukakis; and the story of Dukakis's official witch, Laurie Cabot.

Pablo Escobar, the kingpin of the "'Medellin Cartel," world's biggest cocainetraftl ckingring, sent Dukakis a letter last sprblg praising his "very realistic" stand on drug control , accord ­ ing to the Colombian weeldy Semellza . r------, Daniel Ortega, the Sandinista President of I Nicaragua, thinks "the victory of the Demo­ I Please send me copies of the EIR supple­ . cratic candidate the White Michael I ment, "Dukakls's mental health: an objective assessment." for House , Dukakis, would improve the siw.tion in Cen­ I I enclose . tral America," according the JU lian Com­ I Prices (postpaid): 1-24 copies, $2.00 each. 25-49 copies, $1 .00 to munist I each. 50-99 copies, $.70 each. 100 or more, $.50 each. Party newspaper, Aug. 1 6, 1988. I Name ______I Dukakis is "a very effi cient go�. very ac­ Address ------I tive, with a healthy economic man�t, and I City ------State ------'-Zip,--- big popUlarity in the state of M.sse.chusetts,· I says Radomir Geol'levicJa 80...... , vice­ Telephone ______I director the Ina� I of U.S.A.-Canada m Mos ­ I Make checks payable to: cow, in an interview withIta ly's La, Repu.bblica newspaper on predicts Du­ : EIR News Service, Inc. Aug. 15, which th at 17390, 20041 -0390 kakis will beat Bush November. I P.o. Box Washington, D.C. in L ______� ��+------�------360 �--

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