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Alert • ential d ches fi diSl'at n neWs orld. s o IR get the w E d c day, aroun s to E�er)' US all acces burea ou get 11l our ber, y tant tern fro bscri 11ll'or Eas ert su ost 1 ing In U.S. an Al the 11l brew f the I\S r)' on and ution l'se o de sta al

. GmbH ope: ntur 6, n Eur enage tr. 16 I richt imers Nach otzhe EIR 308 D G . ach 2 , F.R- to: postf baden yable Wies ks pa _6200 e chec e D Mak e�c eVIS s 'N 0 Ilt 7390 -039 'S BoX 1 20041 P.O. , D .C. ngton washi From the Managing Editor Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson and Susan Welsh Editorial Board: Warren Hamerman, Melvin he Brazilian daily Tribuna da Imprensa, commenting on the Klenetsky, Antony Papert, Gerald Rose, Allen T Salisbury, Edward Spannaus, Nancy Spannaus, outrageous censorship of news developments in Panama by the U.S. Webster Tarpley, William Wertz, Carol White, Southern Command, described EIR as the only source of non-cen­ Christopher White Science and Technology: Carol White sored news. Speaking of newly installed puppet President Guillermo Special Services: Richard Freeman Endara, the paper's editor wrote, "The Executive Intelligence Re­ Book Editor: Katherine Notley view, a Washington-based publication, has revealed that the current Advertising Director: Marsha Freeman Circulation Manager: Cynthia Parsons Panamanian President is partner of one of the top narcotics dollar

INTELLIGENCE DIRECTORS: launderers in the invaded country, Carlos Eleta." EIR's exposes Agriculture: Marcia Merry "clearly did not have to go through the Southern Command's Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, censors." Paul Goldstein Going against every "authoritative" media outlet in the United Economics: Christopher White European Economics: William Engdahl, States and WesternEurope, we have been right. Now, with Panama's Laurent Murawiec lbero-America: Robyn Quijano, Dennis Small General Noriega arraigned before a U.S. court on fraudulent drug Medicine: John Grauerholz, M.D. charges, all hell is set to break loose. Around the world, commenta­ Middle East: Thierry Lalevee Soviet Union and Eastern Europe: tors are speculating about the bombshells that Noriega will drop Rachel Douglas, Konstantin George on George Bush-including notably the links of the Iran-Contra Special Projects: Mark Burdman United States: Kathleen Klenelsky "Enterprise" to drug runningin Ibero-America. In our cover Feature

INTERNATIONAL BUREAUS: last week, we predicted that the genocide being carried out in Panama Bangkok: Pakdee and Sophie Tanapura would be the beginning of the end for Bush. This week, we further Borin: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen document, to America's shame, the fascist occupation policy being Houston: Harley Schlanger carried out in Panama (page 36). Lima: Sara Madueiio Mexico City: Hugo L6pez Ochoa, Josefina Our analysis of the Soviet Union is also abundantly confirmed Menendez by recent developments. Contrary to most of the world's press and Milan: Marco Fanini New Delhi: Susan Mailra intelligence agencies, we have insisted that perestroika is dead, and Paris: Christine Bierre that the demise of Gorbachov will bring about cataclysmic events Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi inside the U.S.S.R. This week's evaluation by Webster G. Tarpley Michael Ericson Stockholm: (page 34) shows how close we are now to such an explosion. Washington, D.C.: William Jones Wiesbaden: Goran Haglund But the hope for this New Year in Eastern Europe is vividly conveyed in an eyewitness report by Laurent Murawiec from Prague EIRIExecutive Intelligence Review IISSN 0273�314) is published weekly 150 issues) except for the second week (page 49), on Czechoslovakia's celebration of its newly won of July and last week of December by EIR News Service Inc., P.O. Box 17390, Washington, DC 20041'()39O freedom. (202) 457-8840 Our cover Feature proposes an economic program for the devel­ European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, opment of Poland, elaborating a concept put forward by Lyndon Dotzheimerstrasse 166, D-6200 Wiesbaden, Federal Republic of Germany LaRouche late last year, as the Berlin Wall was being dismantled. Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, Michael Liebig LaRouche said that restoring and upgrading railway links from Paris In Denmark: EIR, Rosenvaengets Aile 20, 2100 Copenhagen OE, Tel. (01) 42-15-00 to Berlin to Warsaw would create the basis for political stability as In Mexico: EIR, Francisco Dfaz Covarrubias 54 A-3 well as tremendous economic expansion. In this issue, our Econom­ Colonia San Rafael, Mexico DF. Tel: 705-1295. Japan subscription sales: O.T.O. Research Corporation, ics Staff outlines the way it will have to be done (page 22). Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. Copyright © 1989 EIR News Service. All rights reserved. Reproduction in whole or in pan without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue--$lO Postmaster: Send all address changes to EJR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIrnContents

Book Review Departments Economics

45 Green fascists plot against 53 Report from Bonn 4 Agriculture talks kick off humanity Dirty tricks won't save world trade scramble Earth Conference One: Sharing a communism. What's so great about opening up Vision for Our Planet, by Anuradha countries to the "world Vittachi. 54 Andean Report marketplace," when the depression Bush threatens Colombia blockade. which the world is now entering will put ever fewer goods out there? Investigation 55 Report from Rio Yet that's what the international Fascism through chaos. food carte18; backed by a fantasy­ ridden Bush administration, think 58 East German dirty-arms they're going to do this year. trail leads to Iran-Contra 69 Kissinger Watch How the "northern route" for illegal Fatties in the White House. 6 Desperate Beijing leaders arms-trafficking led from the offices return to Maoist of IMES GmbH near Rostock, East 72 Editorial Germany, straight into the office of There is no "peace dividend." centralized planning Oliver North and probably that of Vice President George Bush as 10 Currency Rates well. William Engdahl from our & European bureau reports. Science Technology 11 The hypocrisy of UNICEF 18 A Pasteurian war plan to The the U.N. children's relief organization expects more than 100 save Africa from AIDS million children under age five will Ninety years ago, the warriors on die needlessly during the new disease trained by Louis Pasteur, decade. But UNICEF's remedy is such as Eugene Jamot, vowed and even worse than the disease. fought to rid the African continent of sleeping sickness-and won. But today, the genocidal economic 13 After record cold spell, policies being applied to Africa are another oil hoax? such, that even if a vaccine against the HIV virus were available right 14 Agriculture now, most people with the virus New farm bill means less food. would die anyway of other diseases such as TB, leprosy, and kala-azar. 15 Transportation It is time for us to return to Water shipping paralyzed. Pasteur's "total war" approach. 16 Business Briefs Volume 17 Number 3, January 12, 1990

Feature International National 34 The condominium strikes 62 LaRouche: Panama back invasion is treason to the Right on schedule, the United States revolutionary upsurges of October In March 1983, Gorbachov's through December in Eastern predecessor in the Kremlin, Yuri Europe are about to be met by a Andropov, offered the U. S. a free sharp counterrevolutionary tum by hand to conduct wars and invasions the Soviet leadership and in the Western Hemisphere, in military-and, so it seems, with the exchange for Soviet control of blessings of the Kissinger-Bush Europe. That doctrine, which Advanced transport infrastructure already existing in West Germany that needs to be linked up to new infra­ administration. violates all U.S. strategic interests, structure in Poland and East Germany: Containerized is now the official policy of the shipping and computer systems guarantee fast han­ 36 Bush plans to keep troops U . S. -Soviet global condominium, dling and steady control in the ports of Bremen and Bremerhaven. in Panama forever explains Lyndon LaRouche.

37 Backlash against U.S. 64 Bush is no stranger to 22 A program to rescue invasion begins genocide Poland and secure peace Documentation: Voices of outrage He has led a life of neo-malthusian Poland will tum into the from the Ibero-American and disdain for all who are not white, unspeakable tragedy of which Lech international press. Anglo-Saxon, nominally Walesa has warned, unless it moves Protestant, and wealthy. immediately to dump both Karl Marx and Adam Smith, in favor of 41 New monetarist scheme to 66 What went wrong with a return to the economic methods stem collapse of U.S. foreign policy? which built modem Europe, as laid Argentina's economy out by by Gottfried Leibniz, Alexander Hamilton, Friedrich 43 Another coverup in 68 Rock and the cultural war List, and Lyndon LaRouche. EIR's Afghanistan against Panama Economics Staff presents a proposal for the major areas of 47 Greenpeace is welcome in 70 National News concentration for such a ''Third Moscow as a tool for global Way" for Poland. genocide

49 Triumph of Czechoslovakia's revolution Eyewitness report by Laurent Murawiec.

52 'Ode to Joy' resounds in Europe

56 International Intelligence �ITillEconomics

Agriculturetalks kick off world trade scramble by Marcia Merry

While grain, steel, and other basics of world production are States, the European Community, Australia, Canada, and declining per capita, various parties are scrambling to get Japan met in Orlando, Florida. Designed as an informal get­ better positions to control world trade, and to profit from together of the fivefood powers, called "Quint," the confer­ scarcity rather than remedy it. The watchword of the new ence agenda was dedicated to how to "liberalize" world agri­ decade, carried over from the 1980s, is "world market­ culture trade-which means how to further the perceived place"-a euphemism for the process whereby the commodi­ interests of the small number of mega-food companies: Car­ ties cartel companies are maneuvering through their assets in gill, Continental, Louis Dreyfus, Archer Daniels Midland/ various national capitals and in the United Nations General Toepfer, Bunge, Andre/Garnac, Nestle, Ferruzzi, and a few Agreement on Tariffsand Trade (GATT) to eliminate nation­ others . These companies have worked on agricultural trade al sovereignty barriersto any and all trade practices the cartel through the deliberations of the 97 nations in the GAIT group chooses to employ. At the same time, Washington officials in the "Uruguay Round" of talks, which began in Punta del are encouraging East-West business ventures, which they Este, Uruguay in 1986. The plan is that by December 1990 mistakenly believe are an antidote to the economic slowdown there will be a new GATT world agriculture treaty, whose in the West. advance proposals make no mention of the world food scar­ As the year opened, the saddest example of the privation cities. that occurs from being in "the world market" was the nation of Poland. On Jan. 1, the Polish currency was devalued by Collapse of food aid 31.5%-the twelfth devaluation since September, bringing World per capita grain production has dropped from 370 the exchange rate from 1,44 1 zlotys to the dollar, to 9,500 kilograms per capita in 1983 down to below 330 kilograms zlotys to the dollar. For the average Polish consumer, food per capita in the last couple years. At least 500 million people prices are impossible. Unemployment may hit 3 million in the world lack basic nutrition. In December, Edouard people. Saouma, the head of the U.N. Food and Agriculture Organi­ The International Monetary Fund and the international zation issued an emergency call for food for Ethiopia and trade and banking giants state that such austerity is necessary other Africa nations suffering famine. He said, "Millions are for "opening up" the Polish economy to the "free" world in danger, unless there is a relief effort of major proportions." market. Behind this doubletalk, Poland continues to be loot­ Pledges of food aid from the "Quint" food powers and ed by such companies as the U.S.-based food cartel Archer others have declined drastically, from a high of 13 million Daniels Midland. ADM, through its German associate tons in 1987, down to 8.4 million tons this year. Toepfer of Hamburg, makes guaranteed profits off selling Yet the January agriculture meeting took up no questions Polish grain and oilseeds to the West, and brokering subsi­ on increasing food output and targeting exports to points of dized Western grain intoPoland . need. Instead, the ministers talked of "crisis management" Agricultural trade was the subject of the year's first world of food supplies in terms of potential food safety-not food trade gathering on Jan. 3-4, when officials from the United quantity. The safety issue refe(s to incidents such as the 1989

4 Economics EIR January 12, 1990 scare over cyanide in Chilean grapes imported into the United ventures with the Soviet Union and China, say the East-West States-a case where the presence of cyanide on two grapes trade advocates. At present, this is portrayed as the shining was used to ruin the entire season's sales of the Chilean grape alternative to the 1980s binge of failed junk bond ventures, crop. AU. S. spokesman at the Florida meeting said that food "restructuring," etc . safety has now become a "front -burneriss ue." Present were Agriculture Secretary Clayton Y eutter, EC Pie in the Russian sky Agriculture Commissioner Ray MacSharry , and the agricul­ John J. Murphy of Dresser Industries, who is active in ture ministers of Canada, Australia, and Japan. They are the U.S.-U.S.S.R. Trade Council, described perestroika last committed to shipping huge amounts of scarce Westernfood year as "stunning, particularly for someone who has been in to the Soviet Union and China for political reasons, and the market for a long time. High on the list has to be joint selectively denying food to other areas, such as Africa. ventures. The concept of foreign ownership representing Since last November, Soviet and U. S. officials have been more than 50% of a joint venture registered in the Soviet negotiating a new Long-Term Grain Agreement between the Union just a few years into the Gorbachov administration is United States and the U.S.S.R., involving unprecedented a development that seemed unimaginable just a few years amounts of grain and soybean products. On Feb. 15 there will ago." be a day-long seminar in Washington, D.C. co-sponsored by According to Murphy, the greatest opportunities are agri­ the Soviet Embassy and the American Farm Bureau, and business, and "energy, the chemical and petrochemical in­ Jaenke and Associates, on perestroika and the impact on dustries, consumer goods and services, and technology and American agriculture. equipment for the retooling of Soviet industry." There are similar discussions for East-West non-food However, the real potential for such projects is not what trade and joint venture arrangements for the 1990s. The advo­ is promised. The decrepit condition of the Soviet economic cates of the "New Yalta" economic deals evade the issue and social infrastructure and impoverishment in China make of volume of industrial production, just as they evade the such prospects impossible. inadequate level of global agriculture output. In the 1980s, An ABC television program on Jan . 3 was downright tons of crude steel output per capita have been steadily fall­ laughable in its attempts to hype the new opportunities for ing, on a world scale, from over 0.16 ton in 1970, down to East-West joint business ventures in 1990. Executives were less than 0.10 tons at present. However, these parameters interviewed from three companies who have tradedeals with are not being addressed in the discussion of the "free world Moscow-soft drinks, vodka, blue jeans, sweatshop gar­ market" at present. ment manufacture, and cosmetics. There was no one avail­ Instead, ADM chairman Dwayne Andreas, who heads able to represent basic industry. up the U.S.-U.S.S.R. Trade and Economic Council, shuttles Pepsico has 15 bottling plants in the Soviet Union, and back and forth between Moscow and Washington to promote gets its money out of rubles by marketing Russian Stolich­ East-West joint ventures and trade deals, based on hype, and naya Vodka in the West-a longstanding political deal. on the idea of using cheap Soviet labor. Estee Lauder has recently opened a cosmetics shop in At the 1989 annual meeting of the trade group, Dwayne Moscow. To be able to get its rubles into Western hard cur­ Andreas told interviewers, "Overall relations" between the rency, Lauder has been given the concession to market Rus­ U.S. and the U.S.S.R. "are at the highest point I have seen sian sweet almond oil in the West. in the more than 35 years I have been traveling to the Soviet Gitano Co. is opening up a jeans store in the Soviet Union. With all the startling changes under way in the Soviet Union, and plans to get its earnings into Western money by Union, both in the political and the economic sphere, there shipping Russian fabric and piece goods to sweatshops in is more genuine cause for optimism than I can ever recall." South America, and selling the final garments in the United President Bush and President Gorbachov agreed at their States. December Malta summit that by June 1990, there should be While the media tout these pathetic examples as promise a new trade pact to sign. Negotiations could begin as early of a new era of joint-venture perestroika, the U.S. media are as next month, covering taxes, export finance, investments, blacking out the fact that Soviet bigwigs declared Gorba­ and the question of granting Most Favored Nation status to chov's perestroika policy defunct back in December. Soviet the U.S.S.R. Prime Minister Nikolai Ryzhkov, in a speech to the Congress By Jan. 15, the National Foreign Trade Council, a Wash­ of Deputies in Moscow Dec. 13 said, "If contrary to objective ington-based group that reflects such companies as General reason, we should try to introduce full-fledgedmarket rela­ Electric, General Motors, Caterpillar, and Johnson & John­ tions by 1991, it would bring us to serious socio-economic son, is expected to release its list of "priorities" for the new upheaval, a new stage of galloping inflation, falling produc­ East-West trade deals. tion, mass unemployment, and aggravation of social ten­ Like the pot of gold at the end of the rainbow, there are sions." This is a repudiation of the "free market" which was to be great benefits to come to those who get in on joint the essence of Gorbachov's program.

EIR January 12, 1990 Economics 5 China's Economy

Desperate Beijing leaders return to Maoist centralized planning

by MaryMcC ourt Burdman

The Chinese Communist Party's Central Committee, meet­ try of Radio, Film, and Television, with one sign reading, ing in plenary session on Nov. 9, determined to junk Deng "Why is China so poor?" The protesters were herded away Xiaoping's economic "reforms"-the reforms so praised by by police. Henry Kissinger following the Tiananmen Square massa­ Three days later, the London Times reported from Beijing cre-and reimpose centralized political control over the that Chinese workers are writing anonymous letters to gov­ economy. Ten years of Deng's decentralization and incom­ ernment offices, threatening to strike if they are not given petence, following 30 years of Maoist idiocy, have now cre­ more money. Many workers who made 150 yuan a month ated an economic crisis that holds the potential for a renewed (about $35) a year ago now get as little as 40 yuan ($10). political explosion-this time on a scale even greater than Their pay envelopes have been robbed by their employers to the events of last May-June. pay taxes, and the "bonuses" most workers need to feed their A reliable intelligence source reports that the Beijing families have been stopped. Some factories have already leadership is now anticipating the outbreak of mass strikes been hit by unofficialwork slowdowns, the Times reported­ leading to a major urban insurrection, before 1990 is out. on top of the "usual" situation in which most factories are Select units of the People's Liberation Army have been rede­ closed three days of the week due to energy shortages. ployed around the major cities, in preparation for such an The Communist Party's decision to dump perestroika eventuality. followed a full year of chaotic, incompetent attempts to cut The Chinese Communist leaders have indeed provided back on Deng's reforms through the imposition of harsh the model for the Kremlin, which officiallydumped Gorba­ austerity. But the treatment was as bad as the disease, and chov's perestroika restructuring policy on Dec. 13, a month production has collapsed. Indeed, a group of Hong Kong . after the Chinese Central Committee Plenum. bankers told Reuters in December that lending to China is Deng's decentralization policies had left the central gov­ falling sharply because of the retrenchment policies imposed ernment badly indebted and desperate for funds, at a time by government in 1988. China's "efforts to halt inflation when its political control was growing shakier. Whatever were too drastic, and there are already signs of recession," a U.S. National Security Adviser Brent Scowcroft may have China specialist in a Hong Kong bank said. A French banker promised Beijing during his visit there on Dec. II, the efforts said, "The economic reform was on the right track, and we of the U.S. and British governments to shore up the regime felt comfortable lending. But now it's obvious there is a will not be enough. The fall of China's closest allies in com­ return to a state plan-style economy. It may get worse in the munist Europe, Egon Krenz in East Germany and Nicolae future and we must think of China's repayment ability. " Most Ceausescu in Romania, have the Chinese regime justly con­ telling, one Bank of China official in Hong Kong said the cerned. The revolt against Ceausescu holds a special lesson: June massacre only accentuated the drop in lending to China. The Chinese leaders have stated repeatedly that they are de­ "There has not been much business since the fourth quarter termined to repay the foreign debt, whatever austerity the of 1988 because of the economic austerity program," he said. population may have to suffer to do that. Ceausescu repaid Romania's debt by starving and freezing the Romanian peo­ Only international development will work ple for years, and earned their undying hatred. One of the most disgusting aspects of President George Unrest inside China is growing again. The firstpublicly Bush's kowtowing to the bloody crew in Beijing, is that the reported protests in China since the June massacres were Chinese leadership is highly vulnerable, and could be boxed provoked by the economic situation. BBC reported that on in if the industrialized nations were to offer massive infra­ Dec. 9 a small group of protesters gathered outside the Minis- structure investment in returnfor the end to repression. Deng

6 Economics EIR January 12, 1990 Xiaoping and Prime Minister Li Peng have repeatedly stated laration of Private Ownership" published in April 1989 "as that China must have Western help, and especially Western the turmoil began." The paper defended "socialist public technology, if China is going to survive. China has one-fifth ownership" as the only way to save large-scale production of the world's population, only one-twentieth of the world's and prevent chaos and social turmoil in China. arable land, and no infrastructure or energy, after 40 years of communist rule. The incompetence and corruption of the Blaming corruption Communist Party in running the economy, have destroyed In the year since the austerity policy was announced, and the fanatical support for the communist movement which especially since the June massacres, one Communist Party gave Maoist and Dengist excesses a free hand. spokesman after another has denounced the loss of central China must have international help to develop, a point control, and blamed inflation, corruption, the collapse of made repeatedly by the founder of modem repUblican China, production, and every other economic problem on the decen­ the great Dr. Sun Yat-sen, in his 1922 work The International tralization. This culminated in the decisions of the Central Development of China . Committee Plenum which ended Nov. 9. But this is the last thing the depression-ridden United Documents from the plenum which are circulating pri­ States and the Thatcherite catastrophe in Britain could, or vately among China's officials, charged that "years of mis­ would, give China. With the collapse of perestroika in the management" of the economy by "central authorities" had Soviet Union, China is their last hope for slave-labor, in­ dealt a "mortal blow" to the economy. But it is the Chinese and-out looting operations to save Wall Street and the City people, not the rulers, who will suffer to make up for this of London just a little longer-if Deng Xiaoping's army can mismanagement: The only public pronouncement from the hold out. plenum was a communique broadcast on state television The communist leaders admit openly that they can only Nov. 9, which proclaimed that the austerity program adopted hold on to political power through military rule, as Deputy in October 1988 would be maintained for at least two more Premier Li Peng told the West German daily Die Welt on years, to force down inflation below 10% and curb "overheat­ Nov. 16. When asked about Mao Zedong's statement that ed" economic growth to 5-6%. "power comes from the barrel of a gun," Li said, "I do not Reports of the plenum documents appearing in the West­ claim that our [socialist] system is yet perfect. It is in the em press say that the Communist Party decided to slash development phase. Therefore we want to reform the system, imports of lUXUry goods and high-quality consumer goods. and we need the experience of the West. ...The decision Spending will be frozen except for defense, price subsidies, to strike back against the counterrevolutionaries was a collec­ and priority construction projects. Yet, official figures show tive decision ....The Chinese state power is founded on that 80% of China's imports are either vital raw materials guns . You are right, power comes from guns. Therefore we such as steel, iron ore, or machinery. The documents exhort call the Army the 'Iron Wall of China. ' " officials to "aggressively strive for long-term, low-interest This is the context in which the Chinese government's loans from foreign governments and international organiza­ assertions of its commitment to "reform" must be seen. The tions .. ..[B ut] never in the past nor in the future will China official news agency Xinhua reported Dec . 12 that Li Peng bow to any foreign pressure." had told a "group of foreign visitors" that it is "necessary to Finally, almost a month later on Dec. 14 , the People's maintain continuity and stability of reform and open policy" Daily and the English-language China Daily published the in China. There will be, he said, "no change in the contract new rules dictating increased centralization of the economy. responsibility system" for rural households and factories, or "Under a new policy to give central government more control in the development of special economic zones or efforts to over the economy, industrial firms are told to surrenderpart attract foreign capital. China will continue "combining a of their sales automatically next year," the China Daily planned economy with market regulation," Xinhua reported, wrote. The system will curb the "contract system" set up quoting Li that "the view that a smaller proportion of the by dismissed Communist Party head Zhao Ziyang, which market economy in the whole economic setup, means the allowed state enterprises to keep a pre-negotiated part of their retrogression of the reform, is incorrect. Reform of the politi­ earnings, and individually invest or dispose of them. Many cal structure is synchronized with the reform ofthe economic firmstook advantage of this system and gave the government structure." Political reform, like economic reform, "should nothing. The new regulations will allow the governmentto proceed from China's actual situation ....Reform of the reduce sales autonomy, increase taxes, and take over key political structure should be aimed at promoting natonal sta­ enterprises, especially in coal, timber,iron , steel, and other bility and prosperity; it is not to give rise to social turmoil." metal production. The government will also take a bigger And, while the official newspaper Renmin Ribao (Peo­ share of raw materials for the state sector. pie's Daily) reported Dec. 6 that the government's policy The Chinese have reason to warn about "foreign pres­ toward the private sector will not change, just four days sure." Since the government ended its "no-debt" policy in earlier it had published a many-page article attacking a "Dec- 1981, China has gotten more and more into debt, especially

EIR January 12, 1990 Economics 7 in the last three years. External debt alone now stands at income decreased from 37.3% in 1978 to 19.2% in 1988; about $42 billion , which is small compared to other develop­ and the portion appropriated by the central government ing-sector nations, but, as the P.R.C. magazine Outlook re­ shrunk from 70% in 1950s to 42.8% now. "The Center is ported in September, China ranks lOOth in average per capita fighting a defensive action" in trying to retake control. Econ­ productivity in the world, with an average per capita GNP of omist Dai Yuanzhen says that the situation whereby only 1,270 renminbi, or $345 . 19.2% of the national income goes to the government is China's foreign exchange reserves are at $14. 19 billion, unheard of in socialist countries and rare among capitalist down from $18 billion last year; its trade deficit is $6.6 countries; in China it should be 28%. billion, nearly twice that of last year. Finance Minister Wang Bingqian addressed this problem A British China analyst told EIR that "no bankers want of decentralization in a report in the Sept. 2 Economic Daily. China to default on its debt," and the InternationalMonetary The rate of state enterprises retaining earningshas increased Fund is already intervening. On Nov. 14 , 1989, Minister of at a "phenomenal" rate, Wang said. Since the 1950s, ratio Finance Wang Bingqian and Li Guixian, the governorof the of central financial revenues to national financial income has Bank of China (China's foreign exchange bank) both met fallen from 70%, or 60% in the 1960s, to 47.2% now, while with an IMF consultation mission in Beijing. The IMF dele­ price subsidies increased 39.8% between 1978 and 1988. gation was led by Asian Director P.R. Narvekar. Both Chi­ The problem is compounded by a falling rate of labor produc­ nese officials briefed the delegation on China's current fi­ tivity. "Inefficiency has not been tackled," Wang said. The nancial policies and "expressed hope of expanding coopera­ profitabilityof industrial enterprisesfe ll from 16.9% in 1978 tion with the IMF," Xinhua said. A week later, the govern­ to 8.7% in 1988; tax rate on turnover fell from 26.7% to ment imposed tight controls on Foreign Exchange Certifi­ 18 .9% in 1988. Now, the crisis has hit the distribution sector: cates, its convertible currency. FECs can no longer be sold Capital tied up in the distribution sector has risen from 18% for hard currency, or even deposited by foreigners in bank in 1981 to 25% in 1989. accounts, for fear the fu nds will be withdrawn as hard cur­ The government must maintain heavy subsidies on food rency. and other necessities, which are the only way most Chinese China devalued its currency, the yuan, by 26.9% on Dec. workers are able to afford to eat. The government spent 17 , and it promptly fe ll again against the dollar on the main $140 billion on subsidizing everythingfrom food to clothing, foreign exchange market in Shanghai. China officially deval­ transportation, and toilet paper over the past decade, the ued the yuan from 3.72 to the dollar to 4.72, and it then fe ll People's Liberation Army Daily reported Nov. 28, as the further to 5.67 . The devaluation was done to boost produc­ only way to keep prices down as inflation took off due to tion and promote foreign trade; but China's main exports Deng's reforms. Collapsing state industries are also subsi­ include both crude oil and textiles, both of which are subject dized: The government paid about $22 billion to keep them to international controls or quotas, and the devaluation will going in 1988. not increase them much. One Japanese banker said a 50-60% The result is a growing internaldebt . In November, Xin­ devaluation would have been more realistic. hua reported that the State Debt Management Department In addition, Western sanctions, moderate as they are , had announced that China has an internal debt of 80 billion have taken a toll. The Chinese government simply cannot renminbi, ($21.5 billion), bu� this figure does not include afford to make necessary investments, even by focusing all bonds issued locally by Chinese banks or enterprises. China its available credit on heavy industry. Two major steel-pro­ News Analysis on Dec. I reported a much higher figure-an ducing projects in northeast China, the Tianjin and Anshan internal debt of 116.5 billion renminbi or $3 1.5 billion. The seamless steel tube plants, have been blocked because they government must repay $8 billion in domestic debt in 1990, cannot import Italian equipment linked to soft loans totaling and $7 billion in foreign debt. $2 10 million from the Italian government. Due to the May­ The Communist Party lead�rship was warningalready in June upheavals, Baoshan steel works near Shanghai, built September that "retrenchment"-malthusianausterity-was with cooperation of Nippon Steel of Japan and West German going to be imposed. The mass movements of May and June companies, was for the firsttime unable to meet payments to took a huge toll from the fragile economy, and there are its foreign creditors on time. Due to this and international constant reports of labor slowdowns since the June massacre. sanctions, Japanese bankers in Beijing said that it may be Politburo standing committee member Yao YiIin, who impossible to raise financingfor the third phase of building distinguished himself by proclaiming that China could al­ the project, the Japan Economic Journal reported Nov. II. ways tum to the Soviets if the West cut off economic rela­ tions, laid out the details of the policy in the Economic Daily Internal mess Sept. I. He called for a "mass dampaign to increase revenues The Chinese state, supposedly the center of the economy, while reducing overhead . . . necessary to strengthen man­ lost control through Deng Xiaoping's "reforms." China News agement of tax collection ... and cut down on expenses. Analysis reported in its Dec. I issue that the state's national ...Resolute measures should;be taken to restrain excessive

8 Economics EIR January 12 , 1990 growth rates of individual consumption. . . . Enterpriseunits in many coastal provinces. Profits and taxes from every 100 should stop dishing out bonuses, subsidies, and goods indis­ yuan of industrial funds fell from 23.4 yuan last year to 20. 1 criminately." All investment which does not fall into the yuan this year. category of "controlled investment" will be cut off; but all Growth of labor productivity slowed month by month in regions should attract more foreign investment. the third quarter of 1989, Xinhua reported Nov. 3, and actual­ One result was that 1 million rural enterprises were shut ly fell in September. Compared to 1988, increases in produc­ down in the first nine months of 1989-0ver 5% of the rural tivity for state industry was 4% in July, 2.1 % in August, and enterprises that employ 100 million people in China. Asian -1.8% in September. Worse, there has been no increase in sources say that the figure of enterprises closed was actually the number of industrial products meeting quality standards 2.1 million. These enterprises' total output value was almost for the past four years. 650 billion yuan last year, 25% of the country's total social output value. The China Daily reported in December that 3 Stagnation in agriculture million more rural enterprises are being closed. China's leaders have consistently proclaimed agriculture China's rate of industrial growth was negative in October sd the basis of her economy, but China can barely feed its 1989, the China Daily reported. After an industrial growth people. rate of 18% all last year, the rate fell to 0.9% in September On Nov. 27, the State Council proclaimed that China's and -2. I % in October. Officialestimates said profitsof state "governments at all levels must exeItunremitting efforts to enterprises (i.e., most of Chinese industry) have dropped revitalize agriCUlture through promoting scientific and tech­ 17.7%, despite a fund of 100 billion yuan from the state nological progress. They must consider this a strategic proj­ banks. Public sector losses rose 120% in the first half of ect." Three days later, at a national meeting of provincial 1989. governors and officials, the leaders warned that agriculture China's coastal provinces, where Li Peng wants the West is in a "stagnant situation." Provincial officialsattacked the to invest, are all facing crisis. By November, the decline in central governmentpolicy of cutting investment the moment industrial production had hit the province of Liaoning, on "overproduction" was reached. Investment in cotton produc­ the northeast coast, hard. Liaoning is the largest industrial tion in Hebei was cut totally in 1984 due to "overproduction," concentration in China. Total industrial output for November and, as a result, production dropped ever since. In Anhui, was 7.428 yuan, only 0.9% above the figurefor November China's granary, the vice-governorsaid, the "ability to with­ 1988. A 4.2% increase over 1988 had been recorded in the stand natural disasters is very poor." Only 40% of the prov­ firstnine months of 1989. ince is irrigated, and wheat production, in particular, was hit In Guandong (Canton) township, one of the "showcases" by natural disasters. But, he said, "agricultural investment of China, "blindness in their development and . . . economic earmarked in the state budget has not even returned to the retrenchment have caused unprecedenteddifficulties ," Xin­ 1980 level." · hua reported in December. The township registered a 40% Agriculture in China is "in the hands of the gods," the increase in output value in the firsthalf of the year, but from Ming Pao Monthly of Hong Kong reported in October. All July on, output dropped fast. Due to weak markets, rising the talk of bumper harvests in the summer of 1989 is almost raw materials prices, and lack of credit, 45 ,000 enterprises meaningless: The harvest was the largest on record, but only in 1989 were closed, merged, or changed their production­ 2.5% above last year, and bad weather afterJuly cut the fall and the township had a total of 1.15 million enterprises. harvest. At this point, even equaling the 1984 record harvest For the whole province, the number of entrepreneurs fe ll by will not suffice: Population has increased by 70 million in 15,300, to 967,000 since June, and was expected to fall fiveyears . another 30% by the end of 1989, Xinhua reported. Industry is held in check by stagnating agriculture. Agri­ China's leadership will only lurch from wild "reforms" culture provides the key raw materials for many industries, to heavy-handed retrenchment, as they have for the past 40 especially light industry. The drop in cotton production to 4 years, a Chinese economist told EIR in December. With its million tons, down from over 6 million in 1984, could put current bottlenecks, especially in energy and transportation, the whole textile industry-which accounts for the largest the Chinese economy cannot "afford" rapid development, portion of China's foreign currency income in a "serious and after five years' growth, the economy collapses for six crisis," Ming Pao Monthly wrote. or seven years. The central government is in too much of a cash crisis to This is what has happened in the past year. Beijing televi­ buy much of the 400 million tons of agricultural products sion reported Oct. 31 that from January to September, invest­ produced in 1989, Asian sources report. Food is distributed ment in state-owned units' fixed assets dropped by 9.2% to the cities almost entirely through a subsidized government from last year, and overall investment by state-owned enter­ system. In the province of Hopei, the governmentcould not prises fell by 20%. Investment in the fixed assets of autono­ raise the 100 million yuan (about $20 million) to purchase mous regions dropped also from last year, as much as 20% food, and much of 1989's crop is now rotting in warehouses

EIR January 12, 1990 Economics 9 as a result. The P.R.C. Agriculture Department reports that almost Currency Rates 130 million metric tons of food are wasted every year in China: 40 million metric tons between the harvest and prima­ The dollar in deutschelparks ry processing, and another 25 million metric tons during New York late afternoonfixing transport.

2.00 An irrational system The real problem of the Chinese economy is the incompe­ 1.90 tence of those running it. As Jin Lizuo, a member of the State Commission for Restructuring the Economy, wrote in an 1.80 � - article in Britain-China in 1989, China's problem is "re­ .... -- source dislocation" and an "irrational" investment pattern 1.70 r""\. � � which is worsening rapidly. Energy consumption per $1GNP � 1.60 in China is three times that of the advanced industrial nations. 11115 11122 11129 12/06 12/13 12/20 12/27 1/3 Investment in agriculture fell sharply in the past decade: from a high of 11. I % of total capital construction investment in The dollar in yen 1979, it fell steadily to 3.3% in 1987. Farmers' own invest­ New York late afternoonfixing ment was primarily in building new housing, Jin wrote, be­ cause houses as private property have never been touched 150 since the P.R.C. was established, but land is only leased - '" 140 - from the state, and no personal investment is secure from

appropriation. 130 Investment in transportation and communication are only comparable to figures in the United States from a century 120 ago, yet investment in these sectors has remained constant at about 15 % of total capital construction investment over the 110 past decade, Jin wrote . 11115 11/22 11129 12/06 12/13 12/20 12/27 1/3 China's communist leaders have one solution for their The British pound in dollars problems: robbing the workforce blind. Farmers in Jiangsu New York late afternoonfixing province, on the coast north of Shanghai are being taxed out of all their yearly profits when they sell their grain to the 1.80 state, Inside China Mainland reported in November. The Money Collection Division has set up shop right at the buying 1.70 stations, and in many cases farmers had to tum over their - entire earningsto pay the tax. 1.60 � """'" -- Rural revolts may also be building: In September, one 1.50 official was killed in the relatively well-to-do province of

Zhejiang, and about 200 land inspectors have been injured 1.40 in the past months, mostly in disputes about peasants illegally 11115 11122 11129 12/06 12/13 12/20 12/27 1/3 farming state land. On Nov. 18 , the China Daily reported for the first time The dollar in Swiss franks New York late afternoonfixing that workers were "contributing" up to 30% of their pay to buy government bonds, and that the practice of taking the 1.80 money for the bonds from workers' pay may have "caused

resentment." State-owned companies began stealing wages 1.70 from workers' pay envelopes to pay for both state bonds and

public debt bonds months ago. The state issued 12 billion 1.60 � - � - - yuan in bonds in June, and gave workers until the end of the r- r-, � year to buy them. The bonds pay 20% interest-the equiva­ 1.50 lent of China's official inflation rate . Already there is a black market in treasury bonds in over 100 cities, as the Chinese 1.40 speculate that the state will be short of cash for many years 11115 11/22 11129 12/06 12/13 12/20 12/27 113 to come.

10 Economics EIR January 12, 1990 The hypocrisy of UNICEF The U.N. Children s Fund callsJo r a world summit to save children, but wants ThirdWorld to "adjust"to policies thatare killing them.

The United Nations International Children's Emergency to be held in New York this fall, which has the endorsement Fund or UNICEF, predicts in its just-released annual report of over 100governmen ts. that it expects more than 100 million children under the age of five will die in the next decade from starvation or from Debt paid with blood-and children's lives diseases which could easily be prevented or cured. A major issue of this summit will be how the poorest and These children will die for lack of clean water, lack of most vulnerable of children have paid the Third World's debt food, and for lack of the kind of vaccinations which American by sacrificing their lives and health. Incredibly, UNICEF children must have by law-DPT shots to combat diphtheria, reports that the poor world is now paying the rich world $178 tetanus, and pertussis (whooping cough); or MMR shots, that billion a year-about three times as much as all the aid it wipe out measles, mumps, and rubella. It costs just $1.50 to receives from the industrialized countries-just to service its fully immunize a child from polio and these diseases-which debts! would save the lives of more than 3 million children a year. Correctly, UNICEF lays the blame for the state of the Making a simple ten-cent packet of oral rehydration salts world's children at the foot of international lending institu­ available to each child would save another 4 million children tions like the International Monetary Fund and the World a year from diarrheal disease, while a dollar's worth of antibi­ Bank, who demand their usurious loans be paid by bleeding otics per child when necessary could save 2.2 million more Third World countries-for it is these institutions, the UN­ from death by respiratory infections-both of these two dis­ ICEF report states, which created a trend in which "more eases relentlessly claim over 16,000 young lives every day. than a quarter of a million of children under the age of five For every child who dies of these causes, another dozen or are dying every week in the underdeveloped world of easily more are rendered severely handicapped by them for life. For prevented illness and malnutrition." UNICEF cites how the instance, over a quarter million children in the undeveloped undeveloped countries, under the thumb of the IMF and the countries go blind every year because they are deprived of a World Bank, are tied to the infamous loan "conditionalities" dime's worth of vitamin A in their daily diets. that demand they make their economies more "efficient"by Meanwhile, on Dec. 13 the United Nations Food and gutting social programs. Agriculture Organization (FAD) warnedthat a huge shortfall The imposed austerity precipitated a disastrous decline in contributions this year will make it impossible to send food in these countries' living standards and a rapid deterioration to hundreds of thousands of needy persons in 1990. in health and social programs throughout the developing With the release of UNICEF's State of the World's Chil­ world, including an unprecedented stagnation and reversal dren-1990 report, James P. Grant, executive director of in the numbers of children receiving primary schooling. The UNICEF, called upon world leaders to mobilize the money number of children not enrolled in ,primary schools in the and resources needed to save the lives of 50 million of these developing world now mirrors the 1975 levels. children who would otherwise die during the 1990s. The "Unfortunately," the report states, "the debt crisis is now monies would be applied to inexpensive but proven health becoming a debt trap. The way out of this debt crisis, is maintenance techniques like the inoculations mentioned through a return to healthy economic growth, but the hard­ above. According to Grant, the cost for this would be an won surpluses which should be available to invest in that additional $2.5 billion a year-roughly what the American growth are instead being sluiced away into the servicing of tobacco industry spends each year on advertising cigarettes the debt itself. If the trap is pried open by efforts to increase or what people in the Soviet Union have been spending on exports and foreign earnings, then it is likely to be snapped vodka each month. More importantly, it is as much as the shut again by sudden increases in interest rates. " The result is developing world is paying every week to service its debts. that 40, 000chi ldren under the age of five dieevery day-and To gather the critical top-level political commitment for this statistic in no way reflects the devastation done by the this campaign, Grant called for a "world summit" for children HIV -AIDS epidemic sweeping through the nations of Africa.

EIR January 12, 1990 Economics 11 UNICEF calls for a new ethic which "ensures that the protection of children has first call on the concerns and the capacities of adult society in times of turbulence and transi­ tion." This ethic is needed everywhere, UNICEF states, for in the last ten years, Great Britain has had a doubling of the After record qold spell, number of homeless families. In the United States, "one­ third of Hispanic Americans and one-half of African-Ameri­ another oil hbax? cans are living below the accepted poverty line, as are 40% of the children of New York, the financial capital of the In just a few days during hat has turned out to be world. " aboutthe coldest December ver, itnew energy "crisis" seems to have gripped the ation. Almost overnight, Adjustment with a human face con. sumers have been hit fith skyrocketing energy What is truly outrageous is that UNICEF thoroughly de­ prices, startling shortages 0 heating fuel, and rolling tails how unjust debt obligations cause death-but it then electricity brownouts and bl�ckouts . demands that poor countries abide with the genocidal eco­ • Wholesale prices for heating oil, natural gas, and nomic perspective that historically fostered death by forbid­ propane have nearly doubldd, with consumers in the ding any advanced agricultural, industrial, or housing solu­ Northeast already paying more for oil, natural tions which would modernize these countries and wipe out gas , and propane. In manySP %eas, propane has simply r their high death rates overnight. What UNICEF fails to men­ run out; suppliers are enfor1ng de facto rationing, re­ tion is that the IMF-World Bank imposed and enforced back­ stricting the amounts that :ven residential customers wardness on these countries condemns tens of millions of can purchase, while jacking prices way up. people to die with every hostile tum of nature. Consider Is this overnight energy crisis real? Or are the oil the yearly floods that ravage India, Bangladesh, Indonesia, and gas companies pulling new oil hoax, like those simultaneously destroying tens of thousands of the popula­ of 1973-74 and 1979? tion and precious crops-these tragedies can be stopped. According to the Americ n Petroleum Institute and Consider the famines and drought that whipped through these other energy experts, the Uhited States has an ample nations and China and Africa-these too can be defeated . supply of natural gas and bbth crude and refined oil But, that is not UNICEF'a aim, even though these prevent­ including heating fuels. Nat ral gas stocks at the begin­, able tragedies contribute enormously to malnutrition and ning of winter were at an ll-time high of 7 trillion death. Approximately 40% of all young children who die in cubic feet, sufficientto mee any winter demand. the world each year, 45% of the children who are malnour­ Heating oil stocks as of Nov . 1 stood at 122 million ished, 35% of those who are not in school, and over 50% of barrels, virtually the same uantity as last year. Al­ those who live in absolute poverty, are to be found in just though consumption of petr leum products is exceed­ three countries-India, Pakistan , and Bangladesh. ing the amount refined, the difference is only about 1.8 True, UNICEF calls for some form of debt relief or loan million barrels per day, whih has been readily offset discount, but its campaign is called "Adjustment with a Hu­ by imports . man Face"-Africans will just have to "adjust" to evil eco­ Yet with the intensely c Id December weather in­ nomic policies. "The blame" for this crisis, UNICEF says, ' creasing demand some 30%, heating fuel marketers "lies with irresponsible borrowers and irresponsible lenders, and local distributors have 1.10 short, and are scram­ and with international economic arrangements, including bling to findfuel anywhere dt almost any price. trade regulations and commodity prices, over which the de­ There is a scam here , t it's not because of the veloping world has little control but within which it must oil industry per se, and ce +inly not because of local earn its living." distributors. The local fuel upply shortage is indeed UNICEF is dedicated to working within the existing un­ real; suppliers really have sufficient fuel on developed structure of these societies. Rather than focusing on producing new wealth, it wants to shiftaround the crumbs available. The UNICEF writers launch a diatribe against training new doctors, arguing that it is more cost-effectiveto shift h"lth exponditures fcom ity hospitals to "mooting tho train primary health care workers who will remain in rural needs and investing in the cap cities of the poor." As if the areas. They complain about unemployed physicians in Mexi­ poor somehow don't need or deserI ve advanced diagnostic co and elsewhere-implying there is a surplus, but in a plum­ equipment or laboratory tests ordoctorS ! Instead of advanced meting economy-again imposed by debt, while there is a universities to produce that coul ntry's future leaders, UN­ critical need for expanded medical services. To get basic, ICEF wants the one-teacher s hools with a basic primary I cheap medical care into the countryside, UNICEF wants to education, "accessible to the children of the poor majority

12 Economics EIR January 12, 1990 hand despite the ample production. The shortage is being Even if energy prices were somehow stabilized, the caused strictly by the insane "free market" speculative insane financial policies of the last 15-20 years have virtu­ financial policies that have otherwise ruined the entire ally halted major capital investment by the energy indus­ U.S. economy. try. We have reached a point where current temporary Prior to the 1973 oil hoaxI , virtually all fuel energy power and fuel shortages will soon become chronic, with financial transactions were on the basis of long-term con­ the United States subject to the fuel disruptions and power tracts with prices based on cost of production and more-or­ outages typical of Third World nations. less-established profit margins of the various companies in Oil refineries have been working at nearly full capacity the chain of production and supply. Distributors would for several years , and have just barely managed to keep stock up on heating fuel over the summer at discount rates, pace with consumption requirements. Between obsoles­ and simply keep on hand for future use any unused heating cence and unprofitability, some of these refineries are fuel . no longer in service, and the overworked remainder is This system depended on a relatively stable price becoming subject to bigger and more frequent break­ range for oil and gas. After 1973 , everything changed. downs. Oil became a speculative investment, its price no longer Incredibly, the last major refinery was built 15 years grounded on real cost and profit requirements, but on ago , in 1974, and there are no plans whatsoever to con­ what "the market" would bear. "The market" has struct any more . Despite technology improvements that become the crapshoot known as the "futures." In the have enormously reduced construction costs, these costs United States, it is centered in the New York Mercantile have more than doubled, while per barrel profitson refined Exchange, where more than 99% of the contracts traded products have remained roughly the same as 20 years ago. have nothing to do with actual supplies of oil and gas, Furthermore , the plethora of environmental re gulations but are simply financial paper betting on the future has nearly tripled the construction time from three to eight price of the commodity. years , meaning that a company would have no cost recov­ eryfor over a decade . 'Free market' causes'supply breakdown The situation is similar for' natural gas. Twenty years This market is dominated by the major oil companies, ago, the largest users of natural gas were heavy industries. but also by specialist oil-trading firms like Phibro and J. Natural gas consumption was nearly steady year-round, Aron, which are subsidiaries of Salomon Brothers and with only a relatively slight increase during the winter Goldman Sachs, two of the largest New York brokerage months that the system could easily handle. Twenty-plus and investment houses. And it is the brokerage houses years of post-industrial financial insanity have destroyed who control the Merc and who have increasingly used the so much of U.S. heavy manufacturing, that the major market to govern the delirery and price of oil actually natural gas consumers have now become those with more produced. 1 seasonal usage. Under current economic conditions, natu­ With the price of heating fuel drifting downward in ral gas distributors cannot profitablymaintain a large pipe­ recent years , and with the potential for losses having also line system just to meet two or three months of peak winter j,!cked up their financing charges-often to 15% or use. Hence, under severe conditions like a persistent cold more-fuel distributors ca�not afford to hold it in storage wave, the current system, even stretched to the limit, and suffer losses. After several years of mild winters, simply cannot match the demand. distributors this year have generally "bet" that they could This very real crisis, of course, delights Wall Street. get by with minimal stock� . They bet wrong , and they­ Stock market prices for the big oil companies are soaring as well as the consumer-are now victimized by the rising as speculators cash in on big price increases caused by costs of Wall Street's futures market speculation on the sure-fire shortages. weather-induced shortage . -Steve Parsons

and relevant to their needs." In other words, since they will by the degree which it acts when faced with the facts of only dig wells by hand-like their parents before them­ human suffering . Thus, this unjust debt must be repudiated they only need to know how to count change, sign their name, along with the economic policies that have fostered it and and "read" the color symbols on the village's antibiotics and the death of I billion people in the Third World over the aspirin rations. last decade . UNICEF proposes to make the 1990s the We agree with UNICEF that civilization and progress decade for doing the obvious; we can start with fu ll-scale are measured by development of human conscience and . economic development.

EIR January 12, 1990 Economics 13 Agriculture by Robert L. Baker

New farm bill means less food a bill introduced by Rep. Jim Jontz, Continuation of the 1985 fa rm law will result infarm shutdowns (D-Ind.), known as the Sustainable and fo od control. Agricultural Adjustment Act. This bill provides farmers with in­ centives to rotate crops and thereby "reduce the need for fertilizer depen­ dence to maintain productivity." Ro­ S ecretary of Agriculture Clayton Fowler (D-Ga.) would extend CRP to tating more farmland into grass crops Yeutter announced recently that the 65 million acres and will call for addi­ reduces the number of acres devoted Bush administration would have its tional payments to extend the original to grain production. Only cattle can proposals for the 1990 Farm Bill ready 40 million acre enrollment period an­ utilize grass. With cattle prices below for congressional consideration other five years . Other proposals the cost necessary to maintain a profit, "shortly after the first of the year," would pay farmers increased incen­ a prudent farmer wouldn't buy cattle since it was "close to finalizing" its tives to plant trees on CRP acreage. to lose money. The net result: reduced views in areas such as price income Altogether, the end result is not to de­ grain production and no increase in supports and environmental consider­ velop and improve land to make it meat production. ations. Some administration spoke­ more productive for future genera­ Some policymakers have suggest­ smen say that the 1985 law will be tions, but to tum it back into a state of ed that the crop base formula be rede­ resubmitted to Congre'ss, with a few wilderness which prohibits its ability signed to permit farmers greater flex­ alterations, and Yeutter confirmed to produce food. The end result is less ibility in deciding which crops to plant this, saying, "We will follow the tech­ food and the further shutdown of rural yet still be able to qualify for the farm niques that were laid down in the 1985 agro-industry . program. They argue that current re­ farm bill, and adjust them as neces­ Both Senate and House Agricul­ quirements coerce producers into sary to make the next bill more adapt­ ture Committees have discussed, and growing crops that result in surpluses, able to the needs of the moment. " will continue to work toward, changes and greater flexibility would allow The "needs of the moment" for the in legislation regarding agricultural farmers to respond to the "market Trilateral Commission-connected chemicals, and issues related to forces"-the international grain Bush administration, like the preced­ groundwater pollution, food safety, cartels. ing Carter and Reagan administra­ exports , and alternative farming Decoupling, unlinking farm sup­ tions, is to restructure food production methods. port payments from farm production, and processing into the control of a Yeutter underscored the rising is being promoted by Sen. Rudy few international grain and food com­ power of environmental genocidalist Boschwitz (R-Minn.) The goal of this panies, to reduce strategic food re­ organizations in a recent speech at the proposal is to make farmers' planting serves around the world, and to re­ National Press Club. "Environmental decisions entirely neutral from the place family farms with an American considerations will clearly be at the governmentfarm program. The farm­ version of collectivized farming. fore much more than they have in the er could grow whatever he wants---or If you dare to pull back the curtain past," he said. These issues, which nothing at all-and still get govern­ on the stage of food policy debate , surfaced in the 1985 farm bill debates, ment "exit payments." A transitional you will see the ashen faces of the "will emerge to an even greater degree exit payment would start out at the population control lobby pulling the this time around." level of the current deficiency pay­ strings implementing an agenda for "Alternative" agriculture (as op­ ment in the first year, and be reduced world depopulation . Reduced food posed to "conventional" farming) is by 10% a year for the next fiveyears . production is an efficient means to re­ also a hot issue expected to shape the According to the National Farm­ duce population. farm bill and future agricultural policy ers Union , the president of Cargill and The 1985 Farm Bill established to encourage farmers to reduce the use his vice president for public affairs the 10 Year Conservation Reserve of fertilizer and chemicals. Y eutter have strongly endorsed the decou­ Program (CRP) , which will lock 40 and many Senate staffers believe re­ pling of farm programs and farm pay­ million acres of farmland out of food search and development programs ments, and all Cargill officials see it production by the end of 1990. Pro­ will get a boost in the 1990 Farm Bill. as a transitional step to a totally free posals for the 1990 bill by Sen. Wyche The centerpiece of the debate may be market.

14 Economics EIR January 12, 1990 1ransportation by Anthony K. Wikrent

Water shipping paralyzed ceiving parts for repairing an unex­ Nature is presenting the billfor thefa ilure to invest in pected problem with the Mackinaw's main propeller shaft kept the icebreak­ infrastructure programs planned three decades ago. er laid up in a Sturgeon Bay, Wiscon­ sin shipyard for at least another week T he severe cold of December, af­ out the entire year. and a half. tereffects of the 1988 drought, and Continental Grain Company be­ The 1988 budget cuts had forced cuts in the U.S. Coast Guard budget, gan asserting that it would refuse de­ the Coast Guard to announce plans to have all combined to paralyze trans­ livery of the blocked grain, since it retire the 45-year-old Mackinaw, portation on the Great Lakes and the had been forced to buy grain else­ leaving only fivesmaller, and less ca­ Mississippi River system. Many of where to meet export commitments. pable, ice-breaking tugs on the Great these problems would not be occur­ But Continental's sophistry was at­ Lakes, but a mobilization by the LCA ring if major infrastructure programs tacked and exposed by members of in Congress assured continued fund­ had been built as planned in the the audience at an emergency meeting ing for the Mackinaw. 1960s . convened by the National Feed and The premature freeze forced one On Nov. 1, the U.S. Army Corps Grain Association. iron ore ship carrying 50,000 tons for of Engineers curtailed water flow on Warmer weather at the end of De­ Inland Steel to dock for the winter in the Missouri, to build up reservoirs cember melted some ice, allowing a Lake Superior port. for spring planting, forcing an early greater water flow , and by Jan. 3, Inland spokesman Bob Lefleynot­ end to navigation on that river. Ship­ there were seven tows with 49 barges ed however, that Inland had already ping on the Mississippi was seriously waiting to transit the long-awaited stockpiled most of the iron ore it hampered, since 70% of the water new Lock and Dam 26 at Alton, Il­ planned to use during the remainder of flowingpast St. Louis comes from the linois. the winter, and expected no problems Missouri. The severe cold weather also with the final Lake Michigan run of Missouri River system reservoirs caused an early formation of ice in the three other Inland ships from Escana­ were left parched by the drought of St. Mary 's River at Sault Ste. Marie , ba, Michigan to production facilities 1988, and without the major canal and forcing the Corps of Engineers on in Chicago. irrigation systems that were planned Dec . 28 to cease all operations of the USX was reported to be purchas­ in the 1960s but never built, the snow vital Soo Locks connecting Lake Su­ ing iron ore from third sources at Esca­ melt and rainfall of 1989 were not perior to Lake Huron and the East. naba, since it was unable to ship ore enough to restore water levels. "We The closure sent some steel mak­ from its Mesabi Range operations via can only pray for rain," said Morris ers scrambling to assure a continued Lake Superior and the Soo Locks . Larson , executive vice president of supply of iron ore and limestone. U.S. USX spokesman George Kuebler stat­ the Merchants Exchange of St. Louis. flag carriers had projected moving 1.6 ed that USX had already stockpiled "All we can do is look back and say million tons of iron ore through the most of the iron ore it planned to use, 1989 did not replenish what was taken Soo Locks between Dec . 29, 1989 and but admitted that USX was planning by drought in 1988." Jan. 15, 1990. By comparison, more to ship "a large amount" of ore by rail­ In the first week of December, than 5.2 million tons of cargo passed road from Minnesota to its production three tows hit sand bars near St. Louis. through the Soo Locks between Dec . facilities in Gary , Indiana, which On Dec . 20, the Coast Guard placed 16, 1988 and Jan. 15, 1989-includ­ USX had not done "for six or seven severe restrictions on Mississippi Riv­ ing 4.2 million tons of iron ore , years , at least." er traffic between St. Louis and Cairo, enough to make steel for 3.5 million Spokesmen for other steel compa­ Illinois because of low water and ac­ automobiles. nies said that their companies had no cumulated ice hazards. The Lake Carriers Association plans for shipping ore by rail, because Almost 900 barges were trapped, stated that some ofthe 1.6 million tons rail shipment was so much more ex­ and all access was blocked to the Illi­ could have been moved before Dec. pensive than water shipping. George nois River, one of the richest grain 29 , if repairs to the Coast Guard ice­ Ryan, president of the Lake Carriers tributaries in the world. There is so breaker Mackinaw had been complet­ Association, noted that several small­ much traffic onthe Illinois, that it usu­ ed on time, and been available to keep er companies may be seriously hurtby ally remains open for traffic through- navigation tracks open. Delays in re- a lack of ore in February and March.

EIR January 12, 1990 Economics 15 Business Briefs

Domestic Credit back in space activities in the Soviet Union. than $300million a year, as growerspass along The first U. S. commercial cargo was their higil;:r costs. Debt structure launched in mid-December to the Soviet Mir space station, which can offer longer stays in at the breaking point microgravity. Payload Systems , Inc. designed World Trade a package of protein crystal growth experi­ "The overextended debt structure-personal, ments, which will grow for 56 days inside the Moscow sets strict corporate , municipal, state and federal-con­ Mir's Kvant science module. tinues to cry out for massive reflation, without A Japanese private trading company, the limits on exports which repayment is too painful to contem­ Horei group, has purchaseda duplicate of the plate," writes Ed Hart in the Dec. 26 Investor' s Soviet Mir space station for $10 million, Kyo­ Izvestia, the govemment newspaper in Mos­ Daily . do news agency reportedDec . 14. The Nation­ cow, on Dec . 29 published a Dec. II Soviet The procedure is simple: Flood theecono­ al Space Development Agency of Japan be­ Council of Ministers' decree banning all ex­ my and the world with liquidity , just like in the lieves that it could be launched fromthe U.S. ports , by sale or barter, above the limits set in past. However, Hart wams, "It won't be as Space Shuttle. the 1990 State Plan, for food products, coal, easy this time. The so-called bond marketvigi­ oil and oil products, timber, fertilizers, and lantes, afterseeing their purchasing powersav­ constructionmaterial s. The decree was issued aged by past reflations, are alert to any new under the aegis of Prime Minister Nikolai Ryz­ flood of liquidity. " Pesticides hkov , whb announced the death of reform per­ estroika to the Congress of People's Deputies EPA bans use of in a Dec. 13 speech. The decreeis not only meant to freeurgent­ Space EBDe fungicide ly needed food and materials for domestic re­ quirementsand help ease shortages, but elimi­ Soviets halt Energiya U.S. Environmental Protection Agency head nates in one stroke the ability of enterprises William Reilly announced on Dec. 5 that the to export on their own initiative--one of the launches until 1991 EPA will ban use of 90% of the widely used decentralized economic "reforms." fungicide EBDC, after laboratory studies The Ministryfor ForeignEconomic Rela­ The Soviet Union will not launch another showed a lifetime exposureto maximum lev­ tions has also restricted the issuing of licenses heavy-lift Energiya rocket again until 1991, els had acancerriskofmorethan I in I million. for construction projects involving foreign according to the Dec . IO issue of Aviation A high percentage of fresh fru its and vegeta­ partners. Soviet partners are urged to keep in Week magazine. bles will disappear from store shelves as a mind "the currentcampaign in the U.S.S.R. to The first test flight of the booster was in result. reducethe volume of capital construction, and May 1987, and the second was in 1988 with The move follows a cowardly decision . . . the availability of qualified construction the Buran Shuttle orbiter. The Energiya that three months ago by manufacturers of the personnel." has been stacked and IS ready for launch will chemical, who voluntarily withdrew 60of the be stored, and has been made available to any 73 crops listed for approveduse . The proposed other countries that have a payload for it. ban will extend that to three other crops-ba­ Reportedly, the cancellation was due in nanas, tomatoes,and potatoes-which alone Construction part to budgetary constraints in the Soviet account for 40% of the EBDCused in the Unit­ space program, which supposedlyalso caused ed States. Thrift bailout bill the hiatus in manned flights to the Mir space The ban will have devastating effects on station earlier this year. The 1991 Energiya crops, especially in the Rio Grande Valley of hurting developers flight is slated to carry an unmanned Soviet Texas , in Florida, and in other Southeastern shuttle as its payload, which may dock at the states, where the growing season is accompa­ The billre(lrganizingthe U.S. savings and loan Mir. nied by high humidity . Many people will die institutions has resultedin the abruptcutoff of Productionof the Soviet workhorse Proton from the increase in toxic fungus, since the short-termS&L credit to developers, prevent­ launch vehicle has been cut by 30% to eight fungicide, in use since the 1930s, is the most ing them from developing raw land and con­ peryear, according to Aviation Week. Though effective killer of such fungi. structing newhomes, the Washington Post re­ some Soviet officials state that the reduced The financial cost will also be enormous. ported Dec.30. launch rate is due to improvements in satellite Linda Fisher, EPA assistant administrator, As a result, developers have been forced technology which allow them to operatelonger said it will mean between $32 and $58 million to seek higher-cost funds from other sources, and be replaced less frequently, others believe in lost crops and higher costs for alternative or simply cancel their projects. The Financial that the productioncut reflectsthe general cut- fungicides. Thecosttoconsumers will bemore Institutions Reform , Recovery, & Enforce-

16 Economics EIR January 12, 1990 Briefly

ment Act (FIRREA) banned thrifts from ag­ Elektra company in Hanover, West Germany . gregate loans to any one borrowerthat exceed­ Since all nuclear power project in West Ger­ • CORPORATE bankruptcies are ed 15% of the thrift's capital . Given the state many have been phased out in the past few involving skyrocketing assets . of the industry and the new capital standards, years due to radical ecologism, a program for Through Dec. 11, 1989 some 133 that means that many developerswith projects joint construction of new power plants in the companies ,fi led for Chapter 11 with already under way are beingsummarily cut off G.D.R. means a broad-scalerestart nuclear­ of assets totaling $70 billion. In 1986, from normal short-term financing. power technology in West Germany. 159 companies filed, with only $12.7 "You're going to see a whole string of billion in assets. bankruptcies by builders if this isn't straight­ ened out," Kidder Peabody housing analyst • EASTERN AIRLINES will cut Barbara Allen told the Post. "This is serious Wall Street the pay of half its 20,000 workers, stuff. Already I'm hearing of lenders who are once President Bush's refusal to im­ yanking back propertiesfrom smaller, vulner­ Failures are the panel a board of inquiry into the ma­ able builders and then turning around and of­ chinists' grievances brought the East­ fering to sell [for later completion] to larger new business boom em pilots' union to its knees. Eastern builders." will also eliminate 600 middle-level Wall Street's new business boom is the mas­ management positions. sive wave of failures and bankruptcies, the Dec . 31 New York Times reported in its year­ • LATE MORTGAGE payments, Nuclear Energy end coverage, entitled, "Wall Street prepares those 30 days or more past due, rose for a failure boom." to 5% in the third quarter of 1989 Industry revival may " 'Failure is a growth business,' said one from 4.5% in the second quarter, ac­ investment banker summing up Wall Street's cording to �e Mortgage Bankers As­ arise from G.D.R. needs new attitude" toward the wave of business fail­ sociation of America. This is the first uresthat will cause a boomfor the burgeoning surge in the delinquency rate since A renaissance in the construction of new nucle­ "workouts and turnarounds industry." mid- 1985 . ar power plants in West Germany is about to "Major brokerage houses, including First be launched, because of the commitment of Boston, Shearson, and Drexel, arededicating • L. WILLIAM SEIDMAN, engineers in the GermanDemocratic Republic moreresources to reorganizationsand restruc­ chairman of the FDIC, told a New energy sector to shift from lignite to nuclear turings, setting off bidding wars for bankrupt­ York bankers' meeting in December, energy use over the next few years. cy specialists."T hese same houses, whose ad­ "I've been the Cassandra of real es­ Manfred Dahms, director general of the vice and managerial expertise has caused the tate forecasting for some time now.

VEB Power Plant Construction Combine in collapse of these corporations, "arepreparing · . . Unfortunately, events confirmed East Berlin said, "We'll build no more plants to eam huge fees over the next few years cor­ this view." Two-thirds of all new based on lignite technology, we'll have to recting the mistakes they helped make .... lending by commercial banks is now close down over-aged lignite power plants, And few on Wall Street findthe concept odd. related to real estate. which leaves us with the increase of the nuclear . . . Said one investment banker, 'As long as power sector as the most important alter­ people needfinancial engineering, Wall Street • INTEREST PAYMENTS are native." will be involved and will be makingmoney as absorbing 34% of U.S. corporate According to Dahms, a feasible program a result.'... Making a profit by undoing its pre-tax earnings, while debt for the would be to build new nuclear powercapacit­ own deeds is a rich Wall Street tradition." Standard and Poor's 400 Industrial ies of 6,000 megawatts total in the next 10 It is "virtually impossibleto findan invest­ companies has soared from 40% of years, and the technology should be the best. ment bank or law firmwith experience in re­ equity in 1984 to 70% as of 1989. Rather than continuing the unsatisfactory co­ structurings that is not already involved in the operationwith the Soviet Union, EastGerman Campeausituation . . . .'All ofthe advisers on • MACHINE TOOL orders were power generation experts prefer to work with Wall Street aregoing to max out on this deal,' down 34% in November 1989 over West Germany, which has the beststandard in said one investment banker, referring to the November 1988, according to the the world. bankruptcy of the Robert Campeaujunk bond Association for Manufacturing Tech­ With the option of increasedGerman-Ger­ empire. Houses like First Boston, which is nology. Notember orders were down man cooperation, the East Germans feel they stuck with $500 millionin worthlessCampeau 10% from October 1989. For 1989, have a choice they didn't have before, when paper, is aiming to recoup its loss by carving orders at U.S. machine tool plants they wereentirely dependentupon the Soviets. up its host victim and finding"mickies" to re­ will drop more than 20% from 1988' s An offer for joint construction of power absorb new debt, while making clothing sup­ $3.59 billion. plants has alreadybeen placed by the Preussen- pliers take the loss.

EIR January 12, 1990 Economics 17 �TIillScience & Technology

A Pasteunanwar planto save Mrica from AIDS Garance Up ham Phau describes howJollowers qfLouisPast eur developed medical practice to overcome the devastating fdfe cts qf ep idemics inAJri ca.

From the speech of Garance Up ham Phau. to the Nov. 28- The story of sleeping sickness 30 conference in Philadelphia on the use of AIDS as an To accomplish that task, I wish to communicate to you instrument of genocide (see EIR. Dec. 15. 1989) . Mme. Phau the untold story of sleeping sickness. edits a newsletter in France. Medecine-SIDA-Sentinelle, When Pasteur discovered the fermentation of grapes, he and works with the Fusion Energy Foundation in Paris. understood that wine is a disease of grapes-that is, that an outside live agent, "yeast," turns grapes into wine. So in the A year ago, an officialfrom the Ivory Coast Health Ministry 1860s, he thought and understood that any disease of man, was reportedly arguing with industrial nations' representa­ of animals or plants, is the result of a live organism, a "mi­ tives: "Can you tell us that the solidarity in the face of AIDS, crobe" that it is not "innate" to man but comes from outside, which you are always talking about, will persist after treat­ and putrefaction is akin to the fermentation of grapes. So, he ment and vaccine is available? How can you give us this imagined what good could be accomplished if he, with the assurance, when today millions of our children die from help of his friends, trained disciples in his method and sent all the diseases-tuberculosis, polio, measles-which are them into the tropical countries to rid them of diseases by preventable diseases and for which a cure does exist?" mastering the ecology of tropical climates' plant, animal, Say a cure for acquired immunodeficiency syndrome and human microbes and their effects, and by the same token were found today: All the infected people in Africa and Latin develop farming. America would still die. Why, and what we could do about He wrote to his friends, "If only I had a few millions, I it, is the subject of my talk. What must be understood by would tell you all, my friends, Roux, Calmette, I would tell the layman is that the person infected with HIV, and being you: 'Come, we shall transform the world with our immuno-depressedas a result, will come down with whatev­ discoveries.' " One hundred years ago exactly, with the er diseases, whatever pathologies exist in the area-TB , lep­ opening of the Pasteur Institute, Louis Pasteur was able to rosy, kala-azar-and will die of TB, leprosy, kala-azar. begin forming cadres to go into those areas. So two things must be done: There must be treatment These followers of his, scientificexplorers who also cre­ available for all the diseases afflicting people in the tropics. ated leading research centers, worked anonymously at their What would be the use of saying, "I have a cure for AIDS," task, and many lost their lives. They were able to bring about when the HIV-infected patient is dying of TB? There ought a formidable increase in birth rates by eliminating many of to be concomitant administration of anti-viral therapies, im­ the causes for infant and childhoodmor tality, and by creating munostimulants, and/or vaccines, as they become available the basis for agricultural development that would permit the to prevent the manifestations of HIV (neurological and im­ feeding of more people. We owe to Pasteur and his followers munological) that lead to what is called AIDS. the extraordinary expansion in 'the world population which

18 Science & Technology EIR January 12, 1990 has been seen in the past 100years . threatening the entire continent, and laid out the scientific So I am here to humbly bring you a little bit of the scien­ military campaign that could stop the epidemic. If Jamot had tific method of a man whose main accomplishment in life not done what he did, there would probably not be many was to have created, to have permitted, the formidable com­ souls left in Africatoday. ing into being of black, yellow, and white people. I am going to tell you a secret: Sleeping sickness is back The first mission of exploration was Dr. Martin's 1905 today afflictingman and cattle. A World Health Organization research into sleeping sickness, which was carried out in the report in 1986 acknowledges the problem. Chad asked for mountainous area of Guinea, called the Fouta Dj allon. They help to fight the epidemic in 1988, Mali's cattlemen are up traversed 100 miles by foot, with a handfulof local mountain­ against it. Furthermore, the two types of tsetse fliesprevalent eers, a cow in order to vaccinate the villages against small­ in western and central Africa respectively correspond to the pox, and other animals, which they would infect with patho­ areas of prevalence of HIV -2 and HIV -1. gens in order to bring samples back to the laboratories, since Jamot recruited a few people to identify the parasite and refrigeration did not exist. He went from village to village, administer the new drug Atoxil, which, though unable to looking for parasite-infected people and animals, looking for cure the disease, cleansed infected patients' blood, thereby the insects, such as the tsetse fly,which carried the parasites, disrupting the infection cycle. In 1917-18, J amot and his men and living hand to mouth, eating whatever the villagers pro- examined 90% of the population in the area of the Oubangui • vided, including rotten eggs. and Chari rivers, along 1,100 kilometers, going village to But therein, in the firstand second principles of a mission, village. In Cameroon, he reported that "in certain groups of lies the origin of medicine: 1) Go out and find the patients, villages, we were astonished to find out that 97% of the and 2) establish prophylaxis by understanding the ecology of people werealready infected, entirevil lages had disappeared disease, which means the life of the disease. Hundreds of or were about to disappear. The disease was spreading west­ missions of this sort wereundertaken between the 1890s and ward like a brush fire." World War I, with medical personnel crisscrossing Africa, He expanded his prophylaxis team independently of colo­ trekking thousands of miles. nial administrations, and trained 400 cadres in 1920-22 in Sleeping sickness is a disease induced by a parasite Ayos. The evaluation carried out in 1"928 showed how urgent known as a trypanosome. The trypanosome that causes sleep­ the undertaking of the missions had been: There was a 40% ing sickness reproduces biologically in one type of insect, depopulation of entire areas in five years. Villages were the famed tsetse fly. Initially the disease is more or less found to have infection rates ranging between 17 and 77%. "silent," that is, the victim is ignorant that he or she has A permanent prophylaxis mission was established in 1926. contracted the diseasg. The patient may have a low fever and Speaking of the personnel in Jamot's brigades, one ob­ swollen glands-nothing that today, in 1989, would make a server noted: "The personnel, these doctors, these hygiene villager seek help of a physician tens of miles away by foot. agents, these nurses, who without a minute of rest, for three By the time the person becomes ill, the patient is incapable years, have crossed all of Cameroon ,. under very harsh condi­ of walking to a physician, even were one there. The disease tions, on foot, going through every village, working without strikes the nervous system, the person becomes emaciated, a day off, without Sunday's rest, 10 hours a day, sometimes loses weight rapidly-ultimately looking like an Auschwitz 11, their eye on the microscope ... '. All these people were victim, skin and bones-sleeps most of the time, and be­ paid back only by the fact that their leader was an exceptional comes half-demented. man, a sort of god, and it is with a sort of enthusiasm-there In the countryside today, Zairean physicians told me, it is no better word than 'enthusiasm' for the way the teams is sometimes hard to tell whether a patient is dying of AIDS or . forged ahead. Each one was convinced of his special place of sleeping sickness. At the beginning of the 1900s,sleeping in the medical world; to be part of a mission was an honor, sickness threatened to depopulate Africa, much as AIDS was glorious." does today. For example, regions of Cameroon lost half of Jamot explained his method to . the Society for Exotic their popUlations. With the construction of railroads and Pathology in 1920: "Medical prophylaxis as such aims at World WarI, the moving around of large populations brought destroying by chemical means viruses [the original term for the disease far and wide. all viruses, parasites, and microbes]circulating in the blood of patients. To realize that task, one must seek out the pa­ Eugene Jamot: 'Africa, wake up!' tients, treat them, and if possible curethem . This implies the Colonial administrators and military commanders denied periodic careful exploration of all the infected zones. And it the existence of the vast epidemic, but one man arose to must not be rapid inspection tours with hasty, approximate assume responsibility for fighting thedisea se: Eugene Jamot. diagnosis, followed by insufficientor useless treatment, but Jamot swore he would "awaken Africa" from the devastation rather we must visit and visit again, successively, all the of "sleeping sickness." Jamot, a military physician trained villages, examine all the inhabitants one by one, and on the in Pasteur's method, demonstrated that the disease was basis of a microscope-based diagnostic, do the nominative

EIR January 12, 1990 Science & Technology 19 census of all the people infected with trypanosomes, who A for Arms: A team must have weapons, which today will then receive treatment." means antibiotics, vaccines, sufficient stocks of syringes, When the firstreal medical "treatment" for trypanosomia­ etc. You must realize that this is luxury in Africa, where sis made its appearance, Jamot argued with success, that hundreds of thousands of women still die in childbirth, be­ there was no reason only the white colonists should have cause they contract tetanus during labor, and the vaccine, access to treatment, and that the black masses have as much which costs a few cents, is not available. You must realize a right to treatment as anyone. One hopes today, that voices that only the privileged few have access to medicine, via will make themselves heard in the advanced sector to drive black markets, and that the majority of the population has no home the same argument for the expensive anti-viral thera­ access to essential basic medicine to treat common diseases. pies against HIV. A for Auxiliaries: Auxiliaries, such as Jamot's first Con­ Jamot polemicized strongly against the argument that golese assistants, who were trained quickly at the Pasteur sleeping sickness could just be handled like any other dis­ Institute in Brazzaville, are essential in order to mUltiply ease, by general practitioners located only in townships, or the efficiency of the operations-in much the same way as that colonial rules and bureaucratic procedures could be abid­ educated soldiers are for a good army-as well as what good ed by in time of danger. "And if salvation demanded it, we can come only from basic training in scientificendeavors . should not hesitate to create this state within the state, even Today, I believe it could be a source of remoralization for if it means stepping on some people's pride." our youth in both developed and underdeveloped countries to His prophylaxis services, independent ofcolonial admin­ give those youth a few months'.training and send them out istration, respecting no borders, screened 40 million individ­ into the field. They might come back appreciating life , and uals in the 1930s. In the meantime, he was scandalized and with a sense of the importance of science, certainly better stripped of all responsibilities in Africa. In 1944, Vaucel than Western fads and Coca-Cola culture. extended the method to the other tropical diseases, while P for Prophylaxis. Prophylaxis means that it is necessary Richet established a system for screening leprosy patients by to establish priorities for rapid interventions, like surgical "margerite" rotating teams with (periodic) treatments, and strikes, into the disease process, followed by more refined rigorous census of all patients for bacteriological and clinical "rebuilding" of the health standards of a given population. It control and followup. was Pasteur who said, "I never thought of curing a disease, I always thought of preventing it." Few people today in the Jamot's 'MMAAPP' principle industrialized nations realize that medical practice that aims With independence in the postwar years, the new African first at protecting the whole community, precedes and par­ nations set up the Organization for Coordination and Cooper­ takes of development, and that curative medicine follows ation for the Fight against Major Epidemics (OCCGE) in afterwards. No community has ever lived on the basis of 1963 and the Organization for Coordination for the Fight curative individual medicine. Prophylaxis deals with the against Epidemics in Central Africa (OCEAC) in 1964. Phy­ "collective" and historical life form of disease. It deals with sician General Leon Lapeyssonnie, renowned in Africa for pandemics, endemic diseases, and epidemics as such. his struggle against meningitis and a world expert on parasiti­ P for Polyvalence. Polyvalence means that today's mo­ cal disease, explained in the following manner the Jamot bile teams ought to be equipped to specialize in sleeping principles, which ought to be the bible of any serious health sickness as well as in tuberculosis, in human immunodefi­ scientist today: MMAAPP. ciency viruses, as well as in arboviruses [insect-borne virus­ M for Masses: To leave pockets of infections is to let a es]. The choice of which specialists head the team's deploy­ disease fester. In order to check for infectious diseases, one ment in one area would obviously depend on the suspected must go out to the population and screen each and every prevalent diseases in that one area. Then, there would have individual, regardless of whether he or she looks sick or to be interstate collaboration and cooperation. healthy. In most diseases, the initial infection is invisible, or Finally, hygiene agents are necessary to do the "ant unapparent, but the person is contagious, and by the time the work." This is somewhat of a pun, since these are the people infection is visible, in parasitical and several other diseases, in charge of insect surveillance' and eradication programs. it may be too late to treat the person, and it is too late, in The hygiene agents, in the Pasteurian era, had a task they terms of the community, because the disease has progressed would still have today. In the 1940s, 13 million households to other individuals. were visited to be checked for insect infestation, for Aedes M for Mobile: The teams must be constantly on the move, stegomya (the flies that carry the yellow fever virus), or in areas which are 90% rural, such as the African continent. Aedes egypti (the flies that carry the malaria parasite), the The team must go to the people, go to the community, go to tsetse fly (which carries the "sleeping sickness" trypano­ the village. Go, and go back again to see if the disease has some), etc. It means eliminating areas of stagnant water near returned or has moved, and how patients are responding to housing, spraying pests, control of river flows, cutting under­ treatment. brush (where tsetse fliesnest) around houses or cattle pens, or

20 Science & Technology EIR January 12, 1990 providing screens in housing. No less important is educating the disease, and get the help to the afflicted. 3) Get the material citizens in surveillance methods. Insect surveillance also means to fightthe war, which for us entails toppling the pres­ paves the way for the draining of marshes and the reclaiming ent austerity policy. No one has ever fought a war from the of land for cultivation. standpoint of respecting a balanced budget. One cannot fight This is military warfare, because the enemy is alive. tanks with slingshots, any more than African nations can fight Charles Nicolle, a great Pasteurianand the founder of the Tu­ AIDS and associated diseases with aspirin. 4) Use flanking nis Pasteur Institute, wrote, "The infectious disease is en- maneuvers to counter presently evolving epidemics, deploy­ ing screening and prophylaxis. 5) Shoot the enemy, with med­ icine and vaccines, develop R&D as fast as we can, bringing in the poorer nations to the ongoing effortwith the richer coun­ Jamot said that his ''patient''was tries. And, as Pasteur did, we ought to foster the coming into being of large research centers in tropical areas. ''people as a whole" and hisenemy Jamot said that his "patient" was "people as a whole" and the virus. Perhaps the war-winning his enemy the virus. Perhaps the war-winning strategy of Ja­ strategy qfJamot seems obvious to mot seems obvious to you; yet, present-day policy of interna­ tional institutions in charge of health matters is precisely the you; yet, present-day policy qf opposite. For austerity reasons, and coinciding with the international institutions in charge World Bank's abandonment ofindustrial projects in the devel­ qfhealth matters is precisely oping sector, the World Health Organization adopted the poli­ cy labeled "primary health care" at the Alma Ata conference the opposite. of 1978. Primary health care-along with the motto "Health for All by the Year 2000"-means stationary, unskilled, un­ equipped (e.g. no ELISSA testing equipment, no working dowed with the characters of life: Those properties come from microscope, no medications), often semi-literate, poorly paid its animated cause and from the reaction of the cells of our or unpaid personnel are to safeguard the popUlation against organs which are living things. A disease, as all living beings, disease. One high-level European medical scientist in a posi­ has a birth, a life, and a death, an end .. ..Disease has three tion of responsibility in a West African country explained to forms of existence: individual, collective, and historical." me with straight face, that "primary health care means provid­ ing soap and water to the villagers." State of war on disease In fact, it doesn't even mean that, because there is no clean Hence, an epidemic is comparable to an invading foreign water in the villages. A neurologist fromTanzania told me, army. Someone here was asking me about law pertaining to during the recent Marseilles conference on AIDS in Africa: HIV -infected individuals yesterday. As in war, the law starts "If only we had a handful of antibiotics in the MST centers ! We from the standpoint of the Constitution, from the standpoint could really slow down the spread of AIDS (e.g. by treating of protection of the state as delineated in the Constitution. genital ulcers). If only!" If only! Millions need not become The state has the right and obligation to protect its citizens blinded, crippled, or die, just because some bureaucrats are against foreign invasion; to do so, the law provides for state cowards, or evil, or both. As Dr. Lapeyssonnie, himself an measures: 1) to protect the community from the epidemic; 2) expert on parasitical diseases for WHO and former head of to protect the community from the infected individual; 3) to WHO's Mediterraneanoffice in Cairo, told me, "WHO could protect the right of the infected individual, the right to care, not act even if it wanted to!" I can tell you, that this is the best the right to be free of the risk of contaminating others, the known "secret" in Europeamong all thescientists and officials right to a decent life sustenance for him and his family when who know something about Africa, in contrast to WHO and incapacitated by disease. home health ministries as such. The AIDS epidemic, like any epidemic, is comparable to To conclude, I would like to remark on something that I a foreign invasion. In response to it, our health authorities deal with in amusement: I belong to the majority-that majori­ are basically saying, to paraphrase the French former Health ty of humanity who has been, is being, or will be, maimed by Minister Barzach's slogan: "AIDS shall not go through me." a major disease-poliomyelitis in my case-and I am con­ In other words, "Each one of you. run for cover and avoid founded, as well as amused, by the fact, as I once told the getting shot. And if you do get shot, obviously your behavior former French health minister, that present policy, far from was at risk, and if you do get killed, it's your fault. " In contrast protecting the human rights of the afflicted, is a policy of pro­ to that, Jamot's method represents basically sound war-win­ tecting the human rights for all viruses! ning strategy: 1) Gather intelligence on enemy deployment, So, I appealto you, for I wish to become aminority: Some­ e.g., on how virus travels, its speed, efficiency, and direction. thing can be done: It means war, a war against disease, a war 2) Raise an army, mobilize the resources to stop the spread of on behalf of mankind, and we can do it.

EIR January 12, 1990 Science & Technology 21 ITillFeature

A program to rescue Poland and secure peace

by EIR Economics Staff

This winter Poland faces a devastating crisis, a crisis which on one level threatens the existence of the country, and on another, if that crisis is not successfully addressed, the very existence of humanity, in war arising out of spreading econom­ ic breakdown and political turmoil in EasternEurope . The crisis is the result of an overall global financial and economic crisis, fueled, on the one side, by the accelerating economic breakdown of the Russian and Soviet collectivist system, and on the other side, by the de facto bankruptcy of the dollar-based world credit system, and accelerating economic slide into depression in the West. The latter, the cumulative effect of 25 years of slide into the utopia known, in the United States, as the "post-industrial society" compounded in recent years by the liberals' monetarist insanities, in the name of Friedmanism or Thatcherism. To get out of this twofold breakdown crisis, a new approach is needed. More precisely, not a new approach, but a return to the methods of economic policy which have proven themselves over the course of modem European history since the Golden Renaissance, in opposition to the liberals and the monetarists, as well as the communist collectivists. Currently that new method is best associated with the work of the jailed U.S. politician and physical economist Lyndon H. LaRouche. LaRouche is the author of what is called the LaRouche-Riemann method of physical economy, the applica­ tion of the mathematical physics of Gauss, Riemann, Cantor, and Beltrami to the method of economics associated with Gottfried Leibniz, and the creators of the American, or National, System of economics. LaRouche has proposed that the needed approach be called "the Third Way." In his usage, the term "Third Way" signifies something which in a sense lies between the two extremes of evil, bolshevism and Thatcherism, and which is also opposite to the bankers' socialist form of fascist or corporativist economy which is generally popular among Anglo-American and some other sections of the Socialist

22 Feature EIR January 12, 1990 Afood line in Poland. summer 1989. Solidarnosc leader Lech Walesa (inset) has warned repeatedly. since the Solidarnosc-led government came to power last August. that political catastrophe looms ifsubstantial economic assistance is not quickly fo rthcoming fr om the West. The program presented here is urgently required-not the crushing austerity measures now being applied. at the behest of the International MonetaryFund.

International today. In a more positive sense, it means the financialinsi stence on maintaining the stream of debt service. alternative to, and opponent of, Thatcherism, the dogmas of France's President Fram;ois Mitterrand has recently pro­ Adam Smith, and so forth; it is known as the American posed the adoption of what he called a "Third Way" between System of Political Economy, so identifiedby U.S. Treasury the failures of Russian collectivism and Thatcherite neo-Iib­ Secretary Alexander Hamilton, and otherwise associated eralism, a "Third Way" based on cooperation and mutual with Henry and Mathew Carey and with Friedrich List. It interest. The Federal Republic of Germany's Chancellor Hel­ also means, in a broader sense, the physical" economy of mut Kohl has put forward a 10-point program for intra-Ger­ Gottfried Leibniz, which is our own adoption, the LaRouche­ man economic cooperation, under which commissions Riemann method in economic analysis or physical economy, would be formed, from the Federal Republic and the German and which is also, in a broad sense, the tradition of Colbert Democratic Republic (G.D.R.) to study ways in which coop­ and of the cameralists generally. eration and integration might proceed. This "Third Way" fosters increases in potential relative This winter, it is proposed, Poland ought to be the subject population density, by fostering those advances in technolo­ of such discussions, and the recipient of their benefits. If gy which will increase productivity, measured per capita intra-European cooperation, over this winter, can save Po­ and per hectare, while promoting the broad development of land, then an alternativecan be put forward to save the world infrastructure, power systems, transportation, water man­ from the consequences of the failures of both the communist agement, communications, which are proven to support the collectivists' and the Westernli beral monetarists' insanities. necessary rates of increase in technological advance. Chancellor Kohl and President Mitterrand have put for­ The point is, the Third Way as we identify it, the Ameri­ ward the idea of improving east-west rail links. From his can System and what it symbolizes, will work, will suc­ cell in Rochester, Minnesota, jailed U. S. physical economist ceed-the American System, which Germans know as the Lyndon LaRouche has proposed an emergency effort to re­ tradition of Friedrich List. The alternatives, Thatcherism, open and upgrade rail links , along the artery Paris to Warsaw, bolshevism, and bankers' socialism, which is bankers' cor­ to the end of delivering Poland the means by which the disas­ poratism, will be a tragedy possibly for the entire human ters looming this winter might be averted. Out of such an race, possibly for many generations to come. effort , Eastern Europe's plunge into deepening economic Like other nations in Eastern Europe, Poland has been chaos and political turmoil could be reversed, to the benefit caught between the two, incurring debt in the West to finance of all. projects for the benefitof the Russians, seeing capital assets Helping Poland out of its winter crisis would then become stripped out and depleted, to be then handed over, after the the crucial experiment which proves definitivelythe superior­ national economy has been bled dry, to rapacious Western ity of the "Third Way," based on the application of Western

EIR January 12, 1990 Feature 23 culture's conception of the sanctity of every human life; as the order of 5-7 million tons. This means providing for an absolutely different from that of the lower beasts, and the extra 4,000-6,000 freight trains .this winter, or rather more defense of the related Westernsystem of the sovereign nation than 60 per day at the higher level. Freight movement to state. And related ideas, which from the time of St. Augustine ensure spring planting will roughly double this increase in have defined the absolute superiority of Western scientific traffic flow. Therefore , the winter weeks ought also to see and technological progress-based cultures over all others. efforts to get rail capacities in shape to handle about 120 This is the tradition associated in the physical sciences incoming freight trains per day, roughly double the level with Cardinal Nicolaus of Cusa and Leibniz, and in econom­ which prevailed in 1986. ics with Leibniz, the mercantilism of Colbert , the cameralism Most of the increase, so far as bulk goods are concerned, of the Prussian reformers and nation-builders, the national would not involve rail links with the West, but would flow economy of Friedrich List, and the American System of Al­ internally, from the Baltic ports ·of import and transfer, in­ exander Hamilton and Mathew and Henry Carey. This is land. Of the inbound rail-bornefr eight, only about 6 million the tradition that can ensure that the disastrous insanities of tons per annum comes by way of the links over the border communist collectivism, and the liberals' monetarism, can crossings between the G.D.R. and Poland. For this winter, be competently replaced. It is also the unique way by which supplies of food, raw materials for industry, and fuel, would peace might be maintained. be shipped into one of Poland's Baltic ports, and then trans­ shipped onto the Polish State Railway (PKP) system. Rail Areas of need traffic through the G.D.R., from the West, would increase The principal elements of a winter rescue package for as a function of increased shipments of Westernand G.D.R.­ Poland should include the following: supplied spare parts , tools, and capital goods. 1) A debt and financial reorganization package which The increase can be compared with the PKP's estimates would eliminate the usurious pressure to maximize hard cur­ of daily freight traffic. Internally! as of 1985, roughly 4,500 rency earnings. Restoration of rationality to pricing policies freight trains were employed daily, and another 150 were to eliminate the "buy cheap, sell dear" swindles, which en­ dispatched for internationalfre ight transport. Eighty percent sure that countries like Poland don't receive the fruits of their of all the goods carried were bulk goods, and about half of labor in internationaltrade. the total moved on a daily basis involved the Upper Silesian 2) Related to the first: an ensured supply of food over the industrial area. Collapse of internal freight transport since winter months. 1985 would probably have resulted in 350-450 of the coun­ 3) Emergency efforts to maintain supply offuel and pow­ try's daily freight train schedule being taken out of service. er, and bulk industrial raw materials, especially where, as in To put this in perspective, it should also be kept in mind the case of oil, petroleum products, and natural gas, supplies that almost half of the total of rail-borne incoming freight is are disrupted by the failure of Gorbachov' s so-called peres­ iron ore. The iron ore is primarily carried on the line that troika . runs from Hrubieszow on the Soviet-Polish border to Katowi­ 4) Emergency provision of pharmaceutical supplies and ce. The line's track gauge is the same as the wide-gauge medical equipment. Russian system, so border transfers are avoided. Iron ore is 5) Emergency delivery of spare parts and capital equip­ brought in, products from Silesia's metal- and materials­ ment required to restore looted production capability to some processing industries are shipped out directly to Russia. Oth­ degree of functioning, and permit the reopening, or resump­ er imported raw materials are shipped into Baltic ports like tion of work, on the capital improvements which have been Szczecin and Koszalin, entry for iron ore from Sweden, and shut down under the usury regime of the last years. then carried down to the Upper Silesian mining and basic 6) Protection for the production and distribution of con­ industry region. More than 70% of the outbound rail freight struction materials. is comprised of coal mined for export in Silesia and hauled 7) Preparation, in terms ofprovision ofparts , agricultural by unit train back to the Baltic ports. machinery and implements, animal feed, and related prod­ By 1986, while the total volume of freight carried on all ucts, for next spring's planting. modes of Polish transportation had reportedly declined by about 35% since the crisis of 1980, the decline in rail freight EtTect on rail transport system was only one-third as much-lO%-and the decline through We have estimated that the transport and delivery of the the ports was comparable. This margin of unused capacity at increased volume of freight required tomeet the winter emer­ the ports, and presumably in classification and marshaling gency would require more than a 50% increase in the volume yards, increased during the past year, when the volume of of inbound rail-borne freight. Presently, Poland's railroad goods carried on Poland's railroads fell by a further 30 mil­ system carries about 400 million tons annually, of which lion tons. The collapse in goods transported reflectsthe col­ about 40 million tons is made up incoming freight. The vol­ lapse of the steel industry, and therefore a reduction in iron ume of increase on a quarterly basis would be, perhaps, in ore imports, and a reduction in the movement of coal, both

24 Feature EIR January 12, 1990 internally and for export. Coal shipments made up 160 mil­ lion tons, one-third of the total volume carried in the last MAP 1 year. The unused capacity is a primary margin to provide for Poland's railway system the necessary expansion of service.

Polish railroads Within Poland there are 27,000 kilometers of railroad, of which 15,000 are single rail, and 10,000 are fully electri­ fied. In 1986, there were 161,300 rail freight cars; 1,800 electric locomotives; 2,600 diesel locomotives; and 700 steam locomotives. The national average was 7.8 kilometers of railroad per 100 square kilometers. (Map 1.)

Kilometers of railroad per 100 square km

Region of Poland Km of railroad per 100 sq km Katowice 21.5 Walbrzych 14.5 Warsaw 13.1 Poznan 10.9 Rzeszow 11.3 National Average 7.8

CZECHOSLOVAKIA Of the 43 1 million tons of goods moved by rail in 1986, 25 million tons were exported by land, and 24 million tons were exported by sea; 28 million tons were importedby land; 325 million tons were moved as "local traffic." Poland's freight trains average about 1,300 tons carried perjourney , over a 280-km run. Hence the estimated total requirement for extra freight trains required over the winter Speed of freight train months is in the range of 4,000-6,000.The average wagon­ (kilometers per hour) load is about 36 tons, the daily run per wagon about 104 km,

Year Total Electric Diesel and the turnaround time for wagons just over fiveda ys. On 1986 39.9 43.5 34.6 this profile, it would take two freight trains four days to carry 1985 39.9 43.8 34.9 one trainload of freight between Frankfurt, on the Polish­ 1980 38.0 43.8 34.6 German border, and Warsaw. (See Map 3.) 1970 37.4 47.3 38.9 Rail routes into Poland Speed has probably fallen since 1986. Therehas report­ The principal rail route into Poland is of course the direct edly been a noticeable deterioration in the track bed, follow­ one from Warsaw, through Berlin to Hanover. There are ing a sharp drop in investment for maintenance, etc . since subsidiary southern routes, from Warsaw, through Wroclaw 1986. The state rail plan adopted in 1986 envisioned that and Katowice, via Dresden, Prague, and Bratislava respec­ transit from Rzepin on the western border crossing with the tively, to Munich and Vienna. (See Map 4.) G.D.R. to Malaszewicze on the eastern Soviet border would take 20 hours, the north-south route from Gdynia to Zebrzy­ Bottlenecks dowice 24 hours, and the journey from Szczecin into Upper Increasing the volume of freight carried into Poland is Silesia around 20 hours. firstto increase the frequency of the traffic. On one side, this The main line (Poznan-Warsaw) from the G.D.R. border means re-establishing brokenlin ks; especiallythose between is a double line, and is fully electrified. The following rail the Federal Republic (F.R.G.) and the G .D.R., as the respec­ lines are important, and are also fully electrified: Warsaw to tive governments have begun to do. On another, it means Krakow; Warsaw to Katowice; Szczecin to Silesia; Gdynia/ upgrading existing track. Gdansk to Warsaw; Gdynia/Gdansk to Wloclawek. (Map 2.) The big bottleneck to overcome in expanding the freight The line that runs fromCottbus in the G. D.R. to Wroclaw moved into Poland by rail from the west, is the G.D.R. is not electrified. Rail lines in Czechoslovakia are also not Within the G.D.R. the bottlenecks, up to now, have been of electrified. two forms-political as well as physical. The main physical

EIR January 12, 1990 Feature 25 MAP 2 MAP 3 Electrification of Poland's railroads Major routes of rail freight through Poland

:eI ....i . � Bialc)S)ffCka\ B

...czerSimcha.r ) u: a::J en en :i

Muszyna ;..} '" - ' Czechoslovakia, Hungary, Austria, Italy, Yugoslavia, Romania, � Bulgaria, Greece, Tul/

- Lines electrified before 1985 Polish State Railway

_ - Lines planned to be electrified 1986-90

Polish State Railway Tracks have to be upgraded to standard. And, classification and marshaling systems have to be built, with location and bottlenecks to the movement of goods, tracing their path scale depending on how rapidly it is desired to tum Berlin, westward from the Polish-G.D.R. border, are the following once again, into a European hub for movement of goods and (Map S). passengers. First, the principal line into Poland runs from Berlin, The rail freight center at Machen outside Hamburg, through Frankfurt on Oder to Poznan. Double-tracked, like which, handling 4,000 wagons per day, in multi-mode fash­ the rest of the line from Berlin, as far east as Chita in Siberia, ion, is now Europe's largest, would be the model for the this line has been accorded, up to now, only the lowest priori­ freight handling centers which will be built around Berlin. ty for electrification. The electrification of the final stretch The third bottleneck is the matter of access to Berlin from was expected to be completed by the end of December 1989, the west. Traffic coming from the west is restricted to two after many years of infighting. access routes: a northern one, entering the western side of Second, and a problem of a far bigger order, is the one West Berlin, by way of Nauen, ,Wustermark, and Spandau, which has developed around Berlin. Prior to the Second for trains from Hamburg and the north; and, a southern ac­ World War, Berlin was one of Europe's biggest transport cess, on the southwestern side of the city, along the line hubs. This obviously is no longer the case. About 15 million Potsdam, Griebnitzsee, Wannsee, which seems to be for tons of freightare delivered to West Berlin by rail every year, traffic from all other directions� Map 6 shows the present coming from the Federal Republic into the Hamburg-Lehrte entry points, as well as cut lines which have interrupted freight station in central West Berlin. For east-west, and previously existing track. The map also shows the problems even north-south movement by way of Berlin, the two ring with the ring systems. systems, the outer "Aussen-Ring," and the ring which now Fourth is the quality of existing lines linking East Germa­ carries S-Bahn subway passenger traffic for East Germany, ny with the West. Here, as in and around Berlin, physical have to be put in shape. (See Map 6.) bottlenecks stem from political and military considerations. First, they need to be turned back into rings, so that The practice seems to be, as in the crossing Bebra-Gers­ freight can be moved around the city, and not through it. They tungen, a loop back into the territoryof the Federal Republic, need to be electrified, around their whole circumferences. once the border is crossed, followed by a single-track, non-

26 Feature EIR January 12, 1990 MAP 4 The Paris-Warsaw rail corridor

U.S.S.A.

-_ ._'-..... • \ POLAND 'I. Warsaw .1 ___===e: ====.iIr.::::;:;=�=====!�- MB!I��� Kutno \ �./ GERMAN • DEMOCRATIC , Aachen \ ...... REPUBLIC I' \, ' ...... -'" . \ \ FEDERAL ) ... "'". 'r .?J-'. I REPUBLIC OF ' ...... • ". '- . / �, ...... GERMANY ,CZECHOSLOVAKIA '../. _...... <.... / . FRANCE .�. , \. ,--- . --I ..."" -- , ,- • .1 , ,.,...... ". , � _r- :.- . SWITZERLAND'1:"..- ,� ...... ,...... ""- .. AUSTRIA� (. -' ...... J ,,,.'

Principal junctions and approximate distances from Warsaw North link Direct (distance In km) South ilnk Gdynia-Gdansk Warsaw Krakow-Katowice Bydgoszcz-Szczecin Lodz-Radom-Lublin

Gdansk-Szczecin Kutno (80 km) Katowice-Ostrava-Bratislava-Vienna Wloclawek

Gdansk-Szczecin Poznan (250 km) Wroclaw-Katowice Bydgoszcz-Gorzow Wroclaw-Prague-Pilsen-Munich Wroclaw-Dresden-Munich Wroclaw-Dresden-FrankfurtlMain

Szczecin FrankfurtlOder (410 km) Wroclaw

Rostock Berlin (480 km) Erfurt-Stuttgart-Zurich Bremen-Hamburg Leipzig-Munich Cottbus-Wroclaw Dresden-Prague

Magdeburg (570 km)

Hanover (730 km)

Rotterdam Dortmund (910 km)

Antwerp Cologne (1,110 km)

Brussels Aachen (1,170 km)

Liege (1,230 km) Thion�ille Metz-Luxembourg

Paris (1,400 km)

EIR January 12, 1990 Feature 27 MAP 5 G.D.R. railroads, with German­ German border crossings

BOchen DB Schwanheide DR

FEDERAL REPUBLIC OF GERMANY

DB= Deutsche Bundesbahn (West German)

DR=Deutsche Reichsbahn (East German)

== 1 Electrified lines =1 Other lines

- Lines cut by the border

Ide Infographie

electrified stretch, until the first city, Eisenach, is reached. structure-trackbe ds, stations, goods handling, rolling stock The line is then electrifieduntil the tum-off for Berlin is made repair facilities-actually pre-date the First World War. north of Dessau. Existing links have to be double-tracked Steam-driven switching systems, decrepit facilities for steam and electrified. trains, even if now unused, are not always such silent witness Fifth, rebuilding cut railroad connections, some of which to what has to be done to make the East function. Fix-ups are shown on Map 5. This work has beenadopted as a priority and restoration of broken links ought to proceed from the by combined task forces of the F.R.G. and the G.D.R. fol­ standpoint that the whole system ought in any case to be lowing the Nov. 7, 1989 decision to end visa requirements rebuilt. for travel from east to west. Christmas border opening for Seventh, expanded passenger travel possibilities follow­ west to east travel makes the upgrading more urgent. ing the ending of visa requirements for travel between the Sixth, the physical context for relieving the bottlenecks Federal Republic and the G.D.R., bring these matters to the is defined by the brutal reality that East Germany, unlike immediate forefront. Though travel will not remain at initial West, was never rebuilt after World War II. Where the rail­ elevated levels, there will have to be adopted long-term solu­ road network is concerned, this means that existing infra- tions which integrate both territories, otherwise nothing will

28 Feature EIR January 12, 1990 to Szczec/n to Rostock MAP 6 and StraIsund Rail approaches to Berlin

...... Major electric lines

Major non-electriclines \, \ on Oder Other electric lines -"t""- I I rtin_SchOne'81d _J "Be \(WsrsSW) Other non-electric lines , , , e\Blank8nf��-;----- ..... East Berlin subway -" )

..... West Berlin subway KOnogs­ Wusterhausene West Berlin subway lines abandoned to Dresden ..to Cottbus or used for freight

Other abandoned lines

Ide Infographie work. Given the cheapness of rail transport, economically sustain a long-range capital improvement effort which will an order of magnitude advantage for passengers and freight permit Poland's people to become productive again. over roads, and given the primitive state of G .D.R. highway Such a debt reorganization ought properly to be the sub­ networks and facilities, there will be a premium on rapid ject of emergency action taken, as sovereign acts, by the development of integrated east-west rail links. governmentswhich would be directly involved in the effort. The best way to approach this would be to integrate the What Poland perhaps cannot contemplate on her own, or eastern countries-G.D.R., Poland, Czechoslovakia, Hun­ France or the Federal Republic on their own, becomes possi­ gary-into the planned westernhigh- speed rail system. Ber­ ble and urgent, when done together, to preserve peace. lin would be the hub for such an extension, with high-speed Debt reorganization makes possible the introduction of passenger links radiating in all directions. Existing line seg­ sanity to foreign exchange and currency policy. That means ments could then be upgraded for more effective transport of dropping the monetarists' insistenceon full convertibility for freight. the Polish currency, the zloty. There is no way currency Eighth, any significant increase in the capacity to move convertibility can be put forward as an agenda item, separate freight eastward into Poland across the G.D.R. will rather from the catastrophic consequences which will ensue from soon stress the predominantly north-south-oriented railroad the attempt to make the zloty convertible. There could be no system of the Federal Republic. shorter route to the restoration of communist rule than the package of financial measures recommended by Harvard Credit and monetary matters monetarist Jeffrey Sachs and the International Monetary It ought to be recognized by all concerned that Poland Fund. cannot continue to sustain the burden of servicing its foreign Contrary to these bloodthirsty ideologues, Poland's cur­ debt. It ought also to be recognized that Poland's internal rency is undervalued, and massively so. Poland does not credit and pricing arrangements cannot be pulled out of pres­ need currency convertibility, but protection, as defined by ent chaos without reorganizing the foreign debt over 25- the 19th-century economists of the American System, with 30 years, and providing new credit for the development of tariffs on imported products, to protect domestic productivi­ infrastructure, agriculture, and industry. ty, to permit the necessary capital improvements in infra­ The day-by-day and week-by-week labor of Sisyphus to structure, agriculture, and industry to achieve critical mass earn hard currency to pay Western creditors and Russian for take-off. Comparison of the economic costs of production import bills has to be ended, and replaced with efforts to of standard market baskets of consumers' and producers'

EIR January 12, 1990 Feature 29 goods between Poland, the G .D.R., and the Federal Republic Prior to 1980, Poland had ·developed world leadership would establish that Poland is functioning at about one-sixth in areas such as magneto-hydrodynamics (MHD) research. the productivity of the Federal Republic, and the G.D.R. at, Here the practical benefits, in the form of direct reduction of or under, one-half. Such weightings, as refined, would per­ Poland's enormous coal reserves, would pale into insignifi­ mit equitable balances to be established for the purposes of cance beside the advances in human knowledge that are wait­ trade , and tariff structures, designed not to preserve low ing to be achieved in the mastery of plasmas and high-energy productivities, but permit successful investment to reduce the physics. In the economy, Poland's mining sector-and not discrepancies in cost along a technology-intensive, energy­ just the production side, but the affiliated research institutes, intensive pathway. and the mining process machinery sector-were world class. Debt reorganization, and an economically founded cur­ Not so long ago, the case of Poland's contribution to increas­ rency stabilization and protectionist tariff screen, should be ing productivity of coal fields through automation and mech­ accompanied by the corresponding introduction of rationality anization was well known, and Poland led the world. It into pricing arrangements. wasn't only in coal mining though, where Poland still ranks Changes in pricing policy ought to be effected in coherent number four in the world, but also in the development of fashion, without the influence of Thatcherite "magic of the copper and natural sulfur reserves, among the largest in Eu­ market place" free enterprise ideology about letting prices rope. Poland's contribution to the automation and mechani­ find their own levels. Pricing ought to be freed from the zation of underground mining has put it high on the list of usurious and speculative structures tied to the present bank­ countries with the expertise necessary to build sustainable rupt New York- and London-based monetary system. Pric­ human colonies on the Moon and Mars by early in the next ing, as in the case of pricing of agricultural products, what century. the Americans call the parity system, oughUo reflect the No matter how rapidly, or universally, the necessary tran­ economic costs of production, in terms of equipment, materi­ sition to generation of electricity by nuclear fission, or fusion, al, and labor, while providing for the producers' equitable is made, for the next generation the world is still going to profit. need all the coal it can get, even if reduction technologies are This can be approximated by setting a standard for com­ advanced in efficiencyand cleanliness. Therefore, the world modity and other product pricing for the Westernand Eastern is also going to need the expertise and excellence that Poland zones which would be participating in the effort to rescue has developed in this area, and has applied in France and Poland. It is proposed to take the deutschemark import and Germany, India and Indonesia, as well as within the export prices of commodities and products quoted at Ham­ Comecon. burg as the central reference price for all commodities and Culturally, Poland is part of the West's Judeo-Christian products shipped through the territories of nations involved tradition of fostering and protecting the individual's capacity, in the effort. Thus, Poland would be paid the Hamburg deut­ in the image of the Creator, to develop the creative powers schemark price for its exported production. That same price which contribute to the development of the species as a would apply to the nation's imports, and would provide the whole. In confronting the difficult crisis of the winter, it is floorfrom which tariffarrangements would be calculated. the freeing of the nation's such creative capacities, for the This would more accurately cover internalPolish produc­ benefitof all mankind, which oukht to provide the inspiration tion costs than the present "buy cheap, sell dear" swindles and commitment, instead of the detraction of the worn-out organized out of London's commodity exchanges. cliches which otherwise rationalize our continued acceptance Debt reorganization, combined with fair prices for ex­ of communist tyranny and monetarist usury . ported goods, would permit Poland to reduce the volume of its exports while maintaining hard currency earnings at or Winter priorities above present levels, without recourse to ultimately self­ Priorities for winter have to include supplies of food and defeating autarkical approaches. It would help stabilize the fuel. situation in the countryside, and permit peasants to start buy­ In the case of the former, Poland's per capita consump­ ing inputs again, for example. It would help end the usurious tion at the end of the 1970s, when people at least were not and outrageous looting of Poland's mines, industries, and going hungry as they arenow , was about 0.8 metric tons per population. year. Assuming, as a maximum, that over the coming 13 Reorganizing debt, setting a rational basis for credit and weeks, one-half of the food supply of the urban population prices, clears the garbage out of the way to permitconcentra­ has to be met, then Poland will irequire roughly 2.4 million tion on what Poland can really do, and what others can do tons. This breaks down into daily- and hourly food flowsinto for Poland. Equally, it is important to get rid of the kind of the transport grid of the country of 6,800metric tons per day, mental images that would tend to get in the way, associated or 280 tons per hour. It amounts to about five freight trains in the United States with the notorious "Polish jokes" or in filled with food per day. Europe with so-cal�ed "Polish economics." The assumption here is that Poland is about 25% shortof

30 Feature ElK .. January 12, 1990 necessary food supplies, although the actual situation may from the levels of the year before , and perhaps more. well be worse. U.S. "experts" claim that there is no food Oil and natural gas are reportfld to account for 33% of shortage in Poland, simply hoarding by peasants, or insuffi­ Poland's primary fuel requirements , in oil equivalent tons. cient money in circulation. After nearly 10 years of aggra­ The combined shortfall of coal, oil, and gas, can therefore vated looting for hard currency earnings, this is a brutal be put in the range of IS-30% of the country's needs-the absurdity. Politically, it serves to split peasants from city­ lower figurerelative to recent years, the higher relative to the dwellers. "Reform" in Poland, as in the Soviet Union, has coal production peak of 1979. This will minimally affect made food disappear from the stores. It is distributed through more than 20% of electricity generation capacity and in the place of employment, obtained by management under barter range of 7-10% of industrial capacity, more in the more agreements with other suppliers. So the black market replac­ energy-intensive branches like the iron and steel industry and es regular distribution, "price reform" proceeds, and those chemical processing , where, on these estimates, the shortfall who don't have access to supplies-like pensioners, unem­ would be twice as much. ployed widows, �mployees of non-prioritized enterprises­ Beyond the matter of fuel supply, Poland's electricity­ go hungry. generating capacity has been at the breaking point since the There are said to be efforts under way, by the Western late 1970s, when rationing was introduced. Generating plants Europeans, to provide emergency shipments of grains­ will need spare parts, and maintenance work. wheat and barley-through the Baltic ports, and meats Poland's energy expansion plans in the 1970s depended brought overland by refrigerated truck. The amounts are not on the development of the Lublin coal basin, which was to adequate. have provided the margin to take coal production from the 200 Together with food, a guaranteed fuel and power supply million ton level reached in 1980 up to 290 million tons by ought to be at the top of the list. Shortages in fuel supply 1990. It didn't happen. Existing electrical-generating plant, could deliver the death blow to Poland. Coal production is made up of about 57 general-use installationsand 230 specific estimated to be down at least 10% over last year. Imports of application operations for industry, combined with 2 large oil and gas from the Soviet Union are reported to have been generating plants that were scheduled to come on line in the curtailed by the same amount. As with the case of food, these 1980s, accounted for available coal from the Upper Silesian estimates are probably low. fields. Expansion in the 1980s, instead, where it did occur, Fuel supply will probably dramatically worsen after Jan. was to be by way of adding brown coal-burningcapacity . 1, when the impact of newly approved Soviet export guide­ In addition to parts and maintenance for existing plants, lines is felt. The estimates are based on the assessments of what is required to put non-completed plants into operation travelers from Poland. Where fuel is concerned, temperature and open up the Lublin coal fields, should be figured in. becomes a consideration. Estimates are that if the tempera­ Priority consideration might also be given to the German­ ture does not fall below -ISoF for a sustained period, then engineered retrofit of brown coal plants to improve the effi­ stocks at electricity-generating stations, existing before win­ ciency of coal combustion. However, since the retrofit is ter set in and estimated at one month's supply, against the reported to take 18 months, and the plant being upgraded is three of normal practice, ought to be sufficient. However, out of service for that time, it would be better to move directly more devastating, coal production is thought to be down this ahead with the elaboration of a nuclear-sourced electricity­ year by about 10% from the IS0- 160 million tons produced generating program for Poland. Priority should also be allot­ in 1988. This in tum is reduced from about 200 million tons ted to restoring Poland's research work in MHD. per year in 1979. In the industrial-processing sector, beyond the iron and The effects have been and will be felt on electrical-gener­ steel industries, chemical- and petrochemical-processing ac­ ating capacity, which accounts for about half of Poland's count for about 20% of the electricity consumed by Poland's total energy consumption, and everywhere else. Another ap­ industries and 40% of the natural gas. The oil and gas short­ proximately 2S% of the total is consumed by industry as a fall, over the year, assuming a minimum 10% reduction whole, of which more than 60% is accounted for by the (which should be more precisely estimated) is in the range combination of the iron and steel industry, the chemical and of 2.S-3 million tons, with gas counted in oil equivalent tons. petrochemical industry, and non-metal minerals processing. Oil accounts for two-thirds of the whole, 1.65 to 2 million Households account for rather more than 20% of the con­ metric tons . sumption. Household use of coal as a fuel, said to range from 0.6 to Equally devastating is the reported shortfall in Soviet-sup­ 0.8 tons per person per year between 1979 and 1987, accounts plied oil and gas, which, along with otherraw material inputs for about 20% of the coal produced in the country. If half of for the economy, have been sharply curtailed because of the the fuel is burnt during the winter months, then the overall worsening economic breakdown of the Soviet Union itself. requirement of households for the coming 13 weeks ought to Where supply of oil, gas, and refined petroleum products is be in the range of 15 million tons , with an estimated foresee­ concerned,this is thought to entail, at least, a 10% reduction able shortfall in the order of 1.5 million to 2 million tons.

EIR January 12, 1990 Feature 31 Poland exports about 40 million tons of coal per year for edge of the Upper Silesian coal field. Sulfur and rock salt the hard currency earnings; 12 million tons of the exported materials for the chemical industry are also among the most coal is provided to Russians living in the western extremities extensive in the world, and are found, respectively, at the of Soviet territory, not because the Russians need the im­ confluenceof the Vistula and San rivers southwest of Lublin, ports, but because the nearnessof Poland's mines to Russian and between the Vistula and the Notec rivers, between consumers makes deliveries much easier. Bydgoszcz and Lodz. The combined effects of shortfalls in coal, oil, and gas For the mining sector as a whole, ambitious development will also affect the transportation system directly and indi­ plans had been adopted in the 1970s, including planned de­ rectly, reducing freight- and passenger-carrying capacity by . velopment of downstream processing. Poland became a sig­ around 10%. nificantproducer of electrolytic copper, and of sulfuric acid, Increased coal production can be generated internally. and also of equipment for making sulfuric acid. The earlier But the transport system must be capable of moving the development plans ought to be dusted off and recapitalized, increase. The oil and gas requirement cannot be produced after the years of looting. domestically; nor can the Soviet Union, itself sliding into In industrial processing, Poland used to be the second economic chaos and political turmoil, be counted on to sup­ largest steel producer in the Comecon, and the eighth largest ply what is needed. Therefore, other sources forthe oil and in the world, producing more than 12 million tons per year. gas are needed, whether from Norway's North Sea fields, or The steel industry typifies the overall problem. Of the 27 from Middle Eastern producers. plants which existed in the early 1980s, only two had been Similar considerations apply to Poland's other bulk im­ built since the end of the Second World War. The most ports of industrial materials, starting with the largest, iron modem was the Katowice Iron and Steel Plant, opened in ore . In this case, imports have been cut by half since the late 1976, with an initial capacity of 4.5 million tons. The Lenin 1970s, and another 10% reduction is taking place because of Iron and Steel Plant at Nova Huta opened in 1954 with a Soviet supply cut-backs. Here the range would be, on an capacity of 6 million tons. Obsolete open hearth technology annual basis, 10 to 20 million tons, with 20 million the figure makes up the bulk of the capacity, with just over 12% of the reached in the late 1970s. If the winter months account for steel produced by basic oxygen converter, and another 14% one-fourth of the annual consumption, then Poland would by electric arc furnace. Poland had designed a two-phase plan require 2.5-5 million tons of the ore over the winter months. for steel: 1) production of low-quality product for export, Vital would be to find other suppliers, from African and fo llowed by 2) the addition of high-quality specialty steels. Ibero-American nations desperate for expanded and depend­ In the second phase, the Katowice plant was to have been able export markets, to free Poland from its dependency on expanded to 9 million tons capacity. It never happened. One Russian primary materials. specialty steel plant was completed in Warsaw, of ·the In recent years, Poland's railways have carried around planned additions to capacity in Phase II. 400 million tons of freight annually; out of this, approximate­ The chemical industry, located near the sulfur deposits ly 40 million tons are exported and 40 million imported. in Upper Silesia, and at Plock, ajunction with the Soviet gas Thus the system is called on to handle the throughput of pipeline halfway between Warsaw and Bydgoszcz, and, for approximately 10 million tons every quarter, with no account fertilizers, at Szczecin, is also reported to have been among made for seasonal variations. The food, fuel , and iron ore the best in the Comecon. It concentrated on basic industrial requirements sketched out here would amount to an extra chemicals, like sulfuric acid, nitric acid, sodium hydroxide, 5.4-6.9 million tons of freight carried over the winter calcined soda, carbon disulfide, and fertilizers, which could months. Thus, if the emergency action is designed to produce be produced from local materials, and on raw materials for a doubling of the throughput, with a safety margin added on, synthetic fiber production. The industry, like so much else, it would be in the right general direction. This would translate was capitalized by the West in the 1970s, and then cannibal­ into the developed ability to handle, on a daily basis, in ized as part of the drive to reduce imports in the 1980s, excess of 160,000 tons of incoming freight, or 6,000-7,000 reducing output below the levels achieved by the late 1970s. tons per hour. It is the same with the textile industry and textile machin­ ery manufacture, centered on Lodz and Woclawek; with shoe Spare parts and supplies and leather manufacture , which has also suffered from the All areas of industrial processing are affected. Relative decline of agriculture; with the consumer electronics industry to other European nations, Poland is well endowed with raw set up under license fromGrundig in the Federal Republic in materials, with the exception of iron ore , bauxite, oil, and the 1970s; and with the Warsaw auto production facilities set gas. The country's extensive copper deposits, located in up by Italy's Fiat. With the older industry like textiles, some Lower Silesia near Legnica and Glogaw, are among the of the capital equipment predates World War II; these indus­ largest in Europe. Lead reserves are number two in the world; tries were recapitalized in the 1970s, and then destroyed, zinc reserves are number five, and are located on the northern handed over to final looting by 'Western finance, after the

32 Feature EIR January 12, 1990 Soviets had extracted what they could. Food processing and land. In manufacturing employment, the same pattern pre­ storage, including construction of refrigerated warehouses, vails, the worker in the Federal Republic being six to eight would also be a priority under this heading. times more productive in production, per capita of the total Each could be gotten to function again. It is proposed population, of selected consumer items, food , clothing, ap­ that the machining for the parts required, and thus the parts, pliances, automobiles, than the worker in Poland, and four be supplied from the machining and precision industry center to six times more productive than the worker in the G.D.R. in the southern part of the G.D.R. Capital goods capabilities and Czechoslovakia. of the Federal Republic could be employed to jump-start the Such considerations make a mockery of the idiocy put East German capital goods and machining capabilities, by forward in the West by the monetarists, and their hired thugs fulfilling orders for Poland, as G.D .R. capabilities could help like Harvard's Jeffrey Sachs. These argue that the advantage jump-start Polish capacity. of investing in the East is cheapness. They mean the relative cheapness of labor, in terms of wage expenditures. Economi­ Spring planting cally they are illiterates. What is crucial is what they over­ Provision for spring planting will increase the demands look. Poland, the G.D.R., Czechoslovakia, and Hungary are on the rail system significantly beyond the requirements culturally part of the West. Their populations are culturally sketched above. Roughly 5,000-6,000 further trains will be capable of assimilating scientific andte chnological progress required to move machinery, implements, fertilizers, quality in the way that Western culture, based on the idea of the animal feed, and perhaps also seed, which will have to be sanctity of each individual, makes possible. Providin'g capital brought in. improvements to develop basic infrastructure , transporta­ The rough magnitudes are as follows. For machinery, tion, water management, communications, and upgrading Solidamosc has stated that Poland will require some 16,000 the technology content of capital goods stocks, while promot­ tractors. At 20 tractors per train, this would come to another ing and protecting those cultural values which, for the West, 800 trainloads. Animal feed production capacity, manufac­ define Man as uniquely different from the lower beasts­ t.ured, not from forage and silage, has been reduced by 30- such policies would mean rates of growth such that in the 50% since the end of the 1970s. Herd sizes have been reduced medium term of 5- IO years, the expanded European market, too, because of the pressure for foreign exchange earnings. integrating the eastern frontier lands of Western culture, will The import requirement here may be 1-1.5 million tons. easily be the most powerful on the face of the Earth. Similarly for fertilizer, incoming shipments ofespe cially pot­ assium-based fertilizers have been slashed in recent years . . 1iere .the volume required may reach 3-4 million tons. It is also necessary to ensure that there be sufficientseed available to maximize returnby harvest-time.

General considerations To ensure that the spring planting functions, as the final phase of overcoming whatever emergency this winter might So, Yo u bring, is also to commit to the ultimate development and recovery of Poland, as part of a broader effort aimed at the recuperation of the G. D. R., Czechoslovakia, and Hungary. Wish to The broader considerations of accomplishing that objective, adding another 100 million producers and consumers to the Leant All About 300 million and more who comprise the "Inner European Market," ought to govern the approach taken to help Poland Econontics? successfully out of the winter crisis. by Lyndon H. LaRouche, Jr. The rough rule of thumb is that Poland would be to the A text on elementary mathematical economics, by the G.D.R. as the G.D.R. would be to the Federal Republic. In world's leading economist, Find out why EIR was right, energ),' throughput per unit population density, the product when everyone else was wrong. of energy per capita and energy per inhabited and cultivated Order from: hectare, density of throughput in the F.R.G. is roughly three Ben Franklin Booksellen, Inc. .time/> that of the G.D.R. and Czechoslovakia, and 15 times 27 South King Street Leesburg , Va . 22075 that of poland. In terms of capital intensity of employment, the labor cost of agricultural production in the F.R.G. is one­ $9.95 plus shipping ($1.50 for first book, $.50 for each additional book). Information on bulk rates and videotape third to one-half the cost of the same activity in the G.D.R. available on request. and Czechoslovakia, one-sixth the cost of production in Po-

EIR January 12, 1990 Feature 33 The condominium strikes back

by Webster G. Tarpley

Back in November, U. S. congressional candidate Lyndon H. vealed morethan ever as a vehicle for the Moscow-Washing­ LaRouche outlined considerations pointing toward a likely ton-London power-sharing arrangements represented by hardening in the political climate in the Soviet empire some­ British intelligence asset Henry Kissinger. Bush and Secre­ time between Dec. 15 and the frosts of Epiphany. With the taryof State James Baker are incapable of elaborating policy; official liquidation of the former economic reform policy the policy comes from Kissinger, specifically in Kissinger's called perestroika, through the ukase of the Russian military­ capacity as a conduit for such London oligarchiCal and mer­ industrial complex presented by Prime Minister Nikolai Ryz­ chant banking circles as Chatham House (the Royal Institute hkov on Dec. 13, that prediction has already been fulfilled for InternationalAff airs) and the friends of Lord Victor Roth­ in spades. Now, with a few days left before TwelfthNight , schild. ominous shadows of Kremlin-directed counterrevolutionary The framework for policy is the modus vivendi reached regroupment are lengthening over Eastern Europe as well, by Kissinger with the late Yuri Andropov, based on putting an end to the euphoria of the October-December revo­ Andropov's celebrated interview with Rudolf Augstein's lutionary upswing. Der Sp iegel magazine back , in April 1983: The Soviet Gorbachov and his Comintern co-thinkers are attempting Union is a land power and considers the Eurasian land to stabilize "soft" or "reform" communist regimes--or re­ mass as its sphere of power. The United States is a gimes of communist retreads-in the satellites, under the maritime power with interests in the Western Hemisphere rubric of the "socialism with democracy" that was the center­ and in other insular and littoral areas . This crude carving piece of Gorbachov's New Year's address. This momentary up of the globe in the spirit of a New Yalta, which impulse takes advantage of the continued Soviet military furnished the thesis for Zbigniew Brzezinski's recent book presence, and of the fact that, whatever has been alleged in Gameplan, is momentarily the matrix of world politics public, the repressive and secret police apparatus in East and strategy. The U.S. adventure in Panama thus goes Germany and Czechoslovakia, to say nothing of Poland, together with the calls from Sen. Sam Nunn (D-Ga.) for Romania, and the other states, remains essentially intact, a cut of 100,000 men in U.S. military strength in Europe. although perhaps in a "privatized" form . With the demagogic Despite Bush's repeated pre-Malta lies that he was not carrot of "democratic socialism," as endorsed by Margaret acting in the spirit of a New Yalta, this was exactly what Thatcher and the Socialist International, and the brutal stick happened at the "Seasick Summit." In the wake of Bush's of the Red Army , the neo-Bukharinite "cosmopolitan" fac­ adventure in Panama, experienced central European observ­ tion in the Kremlin is scrambling to reassert its hold over ers who thought they had seen; every thing are voicing shock EasternEurope after the explosions of the autumn. over the cynicism and shallowness Bush showed at Malta. Moscow's counterrevolutionary hopes depend for their Especially in the Bush-Baker-Gorbachov-Shevardiladze success on the worldwide U.S.-U.S.S.R. alliance that was tete-a-tete, these observers report, the following monstrosity reaffirmed and extended by the Bush-Gorbachov Malta sum­ was haggled out: On the one hand, Gorbachov was granted ' mit in December. In this sense, the Bush presidency is re- carte blanche for atrocities within the borders' of the

34 International EIR January 12, 1990 U.S.S.R. The only proviso was a meek request for restraint militant, now founding a new election front to carry forward in the Baltic states, presumably for racial reasons. In the their line of cutting off all contacts fNith Western imperialist Transcaucasus and the rest of the U.S.S.R., massacres will exploiters. Moscow storeshelves remained absolutely empty be studiously ignored by Bush. In the satellites, bloodbaths even during the New Year's holiday, with even longer lines can be decided on a case-by-case basis. In the case of Roma­ than usual. nia, for example, the Soviets could have intervened with impunity (and were invited to do so by Baker on Dec. 24), Rapid-fire developments in Eastern Europe but decided that this was not necessary . In exchange, the Salient aspects of EasternEurope are as follows: United States was granted a free hand in such locations as In Romania, additional information corroborates the hy­ Panama. Both regimes, according to these observers, agreed pothesis that the overthrow of Nicolae Ceausescu was the on a five-year freeze on any steps toward German reunifica­ result of a Soviet-directed and Soviet-assisted byzantine pal­ tion, with the U.S. in effect providing a guarantee of the ace coup, featuring communist leaders Ion Iliescu, PetreRo­ continued existence of East Germany, as signaled by the pre­ man (the rumored former lover of Ceausescu's daughter), Christmas Baker visit to East German leader Hans Modrow Gen. Nicolae Militaru, and General Vlad of the Securitate, and by the renewed lockstep of the four victorious powers in and prepared over many months. With these leaders, Roma­ their reassertion of controls over West Berlin. nia is now more under Soviet domination than it was under Nevertheless, according to reliable sources, the month of Ceausescu, with the obvious implications for Soviet troop December was catastrophic for Gorbachov, as signaled by transit toward Yugoslavia and Bulgaria. his humiliating threat to resign on Dec. 9, and by the disinte­ In Yugoslavia, social tensions are being exacerbated by gration of the Gorbachov group during the Central Commit­ the heavy austerity, which is being portrayed by the fascist tee meeting held on Christmas Day. Gorbachov's only stock Slobodan Milosevic as a Croatian-Slovenian plot against the in trade is now the Malta package, and his sole argument Serbs. against those in the nomenklatura who regard him as useless As for Baker's incredibleinvitatio ad offerendum, former ballast, is that it is afterall Gorbachov who has the deal with German Defense Ministry official Lothar Ruehl correctly Bush and the Americans, which without him might be open pointed out in Die Welt ofJan. 2 that Baker's remarks amount to question. to a revival of the 1968 Brezhnev Doctrine, asserting limited Gorbachov is tormented by the separatist agitation in sovereignty for all Soviet satellites in the Warsaw Pact. the Baltic states. Despite all the threats pronounced by him Ruehl, with a memory that is somewhat longer than that of against the Lithuanians, Dec. 28 saw the formal registration the current French government, notes that we are dealing in Vilnius of the breakaway Lithuanian Communist Party of here with the "two hegemonies" rejected by de Gaulle a Brazauskas, and an openly secessionist Democratic Party, quarter-century ago. with the secessionist Social Democratic Party right behind. In Poland, the suicidal fury of the Mazowiecki-Balcero­ On the same day, the Latvian Parliament was debating a wicz austerity measures is creating optimal conditions for the constitutional amendment to abolish the primacy of the Com­ early destruction of Solidamosc and the reestablishment of munist Party in state and society, although a final vote was Soviet control. Not much enthusiaSimcan be expected for the put off until later. Pravda denounced the Lithuanian multi­ removal of the "people's republic" label, when it accompa­ party system, alleging that this was provoking the Soviet nied 38% increases in the price c;f bread, 600% for coal, party to take decisions that would end perestroika. Gorba­ 400% for electricity, 100%for gasoline, and 75% for sau­ chov is supposed to go to Lithuania to resolve the impasse, sage, all accompanied by a wage freezeand the 13th (almost but he is clearly not anxious for what is almost sure to be a weekly) devaluation of the zloty. Rakowski's Communists new debacle for him. Instead, in the first week of the New and their OPZZ trade unions will have a field day against Year he convoked the Lithuanian Politburo to Moscow for the increasingly hated Solidamosc ministers. Gen. Wojciech talks. Jaruzelski retains control over the state apparatus. At the same time, British Labour Party leader Neil Kin­ In East Germany, Prime Minister Modrow, Stasi Gen. nock made the interesting revelation that Gorbachov has can­ Markus Wolf, and Communist boss Gregor Gysi remain in celed all meetings with foreign statesmen during January, de facto control against a fragmented opposition, and are citing the excuse of pressing internal matters . Kinnock said benefiting from an absurd "neo-Nazi" scare concocted with that this had been the content of a note from Gorbachov the help of the Anti-Defamation League and British intelli­ calling off a scheduled meeting with him. Such a develop­ gence. The Communists are seeking to re-Iegalize the alleg­ ment is exceptionally ominous for Gorbachov, whose only edly dissolved Stasi secretpolice even before the May elec­ successes have been his foreign policy swindles. With that tions, citing the need to combat the neo-Nazi menace! Many cut off, he is left with nothing but the domestic catastrophe Stasi members continue to draw governmentpaychecks , and he has done so much to create. The great Russian chauvinists have access to weapons caches. Four hundred thousand elite of the Red Army's Pamyat milieu have become increasjngly Soviet troops remain on the scene.:

EIR January 12, 1990 International 35 Bush plans to keep U. S. troops in Panama forever

by Carlos We sley

President George Bush plans to continue the U.S. occupation forces, Lt. Gen. Carl Stiner, said that the new force "will be of Panama forever. Although the supposed chief aim of the armed only with shotgun and pistols," reported the Washing­ invasion was achieved on Jan. 3, when Gen. Manuel Noriega ton Post Jan. 6. surrendered to U. S. forces to prevent a threatened attack against the Vatican's embassy in Panama, the puppet govern­ Narco-fascism ment installed by Bush is being run by the U.S. occupation U.S. occupation forces in Panama are implementing po­ forces. lice-state measures to eliminate any nationalist opposition to The Los Angeles Times reported Jan. 1, "The man who the occupation or to the drug-linked governmentof Endara, runs Panama has an office in the Presidential Palace and roars and his vice presidents Ricardo Arias Calderon and Guiller­ through town in a bulletproof limousine accompanied by mo "Billy" Ford. Thousands of Panamanian civilians are armored bodyguards who wear ominous dark glasses. He being detained daily for questioning, and many are being decides who can walk free and who goes to jail, when citizens held in concentration camps set up by the occupation forces. can be on the street and when they have to be in their houses, On Dec. 29, Elmo Martinez Blanco, former Minister of In­ and even what avenues are open to traffic. This man is not dustry and Commerce, was tak¢n handcuffed from his home President Guillermo Endara ....He isn't even a Panamani­ by U. S. soldiers. His family has not seen him since. The same an. . . . His name is John Bushnell-and he is the closest happened to labor leader Mauro Murillo, and to economist thing the United States has to a proconsul." Bushnell, the Rafael Mezquita. number-two man at the U.S. embassy in Panama, has since This is complemented by a campaign of psychological been superceded by Deane Hinton, who was appointed Jan. terror designed to stamp out any nationalist sentiments. The 2 as the new ambassador. print media is publishing "enemies lists," to sow fear and EIR repeatedly warnedsin ce the campaign against Pana­ distrust among the population. ma was launched in 1985, that the U.S. was out to destroy Former U.S. Attorney General Ramsey Clark charged in Panama's Defense Forces in order to renege on the 1977 Panama Jan. 6 that the American media is engaged in a Panama Canal treaties, which call for the United States to "conspiracy of silence," by not reporting on the political tum over the canal to Panama in the year 2000, and to with­ persecution and by hiding the true number of civilians killed draw its military bases in Panama. by the invading forces. When, a hostile reporter said that In our White Paper on the Panama Crisis, firstissu ed in "only 89 civilians were killed" and challenged Clark's claim July 1986, we said that the recolonization of Panama was that the number of victims was at least 4,000, Clark replied part of a project "to establish a new supranational global that he had personally examined one mass grave, 40 yards order, run as a condominium between Western bankersand long, 6 yards wide, and at least 5 yards deep. "You do not the Russians. " We also said that the grouping the U . S. want­ need mass graves to bury 89 bodies," said Clark. ed to install in power in Panama is "neither honest nor demo­ There is increasing evidenc;e that the invasion and the cratic, but rather frontmen working for the drug mafia: drug occupation was targeted mainly against Panama's black and money launderers, lawyers for cocaine and marijuana traf­ mestizo population, and other minorities, including Jews. fickers, terrorists." One of their aims, we said, "is to elimi­ Widespread looting during the . invasion destroyed 90% of nate the Panamanian military outright. " Jewish-owned businesses in Panama City, with losses ap­ Our warnings have been confirmed. Bush has ordered proaching $1 billion, said Moises Mizrachi, head of Pana­ the dismantling of the Panamanian Defense Forces (PDF). ma's Anti-Defamation League. The lie put out by the media Puppet-President Guillermo Endara announced Dec. 28 that is that the looting was carried out by the Dignity Battalions Panama will not have an army, just a police force. As the loyal to Noriega. Yet the occupation forces did almost noth­ Washington Post commented, the decision "would also indi­ ing to stop the looting. If the looters were indeed Noriega's cate a continued major role here for the U.S. military, espe­ forces, why didn't the invaders shoot? cially after Panama assumes full control of the Panama Canal Mizrachi furtherpointed out that Endara was a "protege in 2000." The operational commander of the U.S. invading of [Arnulfo] Arias," the Nazi former President, whom he

36 International EIR January 12, 1990 described as as "anti-Jewish, anti-Negro and anti-Oriental." Mizrachi maintained, however, that Endara himself "harbors no anti-Semitism." Total losses to the Panamanian economy may exceed $2 Backlash against billion. But, despite promises by Bush that he will help to rebuild the economy, so far the only money made available U. S. is a small portion of the Panamanian funds the U. S. held in invasion begins escrow as part of its sanctions against Noriega. In fact, while by Gretchen Small Panamanian economists say the U.S. owes Panama at least $700 million, Washington only acknowleges a debt of $370 million. The administration says the U.S. alone will not pay Bush administration officials appear as confidentthat Ibero­ for the cost of rebuilding Panama, and says that help should America will soon accept U.S. occupation of Panama as a be provided by Japan, Europe, and financialinstitutions such fa it accompli. as they were that the Panama Defense Forces as the International Monetary Fund. But those institutions would lay down their arms without a fight. So confident is will not lend any money "until Panama pays $400 million in President Bush, in fact, that he sent Henry Kissinger down back loans, and adopts structural reforms," reported Mexi­ to Caracas Dec. 29 to meet with Venezuelan President Carlos co's El Financiero Jan. 1. Andres Perez and his shady business sidekick Gustavo Cisn­ There have been some cracks in this conspiracy of si­ eros, to work out how to quickly "mop up" continental resis­ lence, at least regarding the drug conections of the puppet tance to U.S. plans to eliminate Panama as a nation. Upon government. On Dec. 31 Jornal do Brasil, Brazil's largest leaving their pleasant luncheon, Kissinger assured the press daily, ran a front-pagearticle on the "special vulnerability of that "Panama is an incident" which will soon blow over. Guillermo Endara," . because of his connections to Carlos Indeed, the United States has deployed unprecedented Eleta, "accused in the United States oflaundering money and diplomatic and military pressure to silence lbero-American trafficking in 600 kilos of cocaine." Vice President Arias resistance as quickly as possible. Every U.S. asset in the Calder6n's brother Jaime is tied to the First Interamericas region has been activated in support of the invasion, while Bank, whose owner, Gilberto Rodriguez Orejuela, was ac­ wire services pump out a steady stream of propaganda that cused in 1985 of overseeing the transfer of $46 million in all resistance throughout the region has collapsed. drug proceeds to the Banco Cafetero Panama in New York, Despite the pressure, however, the U.S.-imposed Guil­ the paper reported. As for Billy Ford, he is implicated with lermo Endara governmentin Panama has thus far been recog­ politicians Carlos Rodriguez (Endara's ambassador to Wash­ nized by only four countries: the United States, Great Britain, ington) and Bobby Eisenmann in the laundering of drug funds Luxembourg, and Dominica. From the standpoint of Ibero­ through the Dadeland National Bank in Miami. American patriots, a battle as during the 1982 Malvinas War The Miami Herald reported Jan. 5 on the ties between is again taking shape, to defend the continent's right to sover­ Medellin Cartel money launderer Ramon Milian Rodriguez eign development against the attempt to subjugate it to An­ and Henry Ford, brother of Panama's second vice president, glo-American rule. Guillermo Ford. Milian Rodriguez "laundered millions of dollars in drug money in the early 1980s through a Panamani­ 'You're with us, or we're against you' an company in which Ford's brother Henry was an officer. " The veiled ultimatum issued to the Argentine government The same day, the Oakland Tribune came out with an by Bush's ambassador to Argentina!ferenceTodman , exem­ editorial stating: "It is significant that Noriega's political plified Washington's message. "We regret that those who, foes, who now enjoy power, opposed a rollback in the coun­ for years, have expressed their support for hemispheric ef­ try's bank secrecy law that passed the legislature in Decem­ forts to liberate Panama from the Noriega regime, now do ber 1986." not deem it appropriate to support the United States in the One ofthose mentioned by the Oakland Tribune is Rogel­ necessary measures which we have carried out," Todman io Cruz, installed by the U.S. occupation forces as Panama's stated in a Dec. 21 communique. "The decision of President new Attorney General. Cruz was a member of the board of Bush to act with firmness and legitimacy in self-defense and directors of First Interamericas bank, which was closed down in the name of the conscience and democratic norms, de­ by the Panamanian governmentin 1985, after a joint opera­ serves not opprobrium, but the full support of all sister de­ tion with the U.S. Drug Enforcement Administration re­ mocracies. " vealed that the bank was engaged in money laundering and Within 24 hours of Todman's communique, Argentine that its principal shareholder was Gilberto Rodriguez Ore­ Army officials announced that retired Col. Mohamed Ali juela, kingpin of the Cali cocaine cartel. Seineldin-who issued a Dec. 22 appeal for all American patriots to support Panama against the "aggression against the principle of national sovereignty"-had been placed un-

ElK January 12, 1990 International 37 der 20-day house arrest. Seineldfn, whose patriotic leadership in the past five Documentation years has made him increasingly looked to by civilian and soldier alike as the savior of the Argentine nation as crisis loomed, replied that it was "an honor to be sanctioned for defending the sovereignty of a Latin American nation which, in its moment, offered solidarity to our Malvinas cause." U.S. pressure also succeeded in having Colombia's For­ eign Minister Julio Londono sent on a sudden "leave of ab­ sence" to attend to "personal matters," shortly after he had Vo ices of outrage drafted a harsh condemnation of the U.S. invasion which he proposed be submitted to the foreign ministers of the "Group from Ibero-America of Eight Minus One" (Argentina, Brazil, Colombia, Mexico, Peru, Venezuela, and Uruguay-the "one" being Panama). Brazil The Colombian press reported how the State Department had Jornal do Brasil, the New York Times of Brazil, has run contacted Colombia's ambassador to the United States, and a near-daily series of exposes on the fraudulentnature of the pressured him in tum to contact U.S.-favored Colombian ex­ Endara governmentestablished by the U.S. militaryfo rces. President Julio Turbay. The first in the series, published Dec. 31, 1989, under the The invading U.S. military command was deployed po­ headline "DangerousRelations with Drug Trafficking, " re­ litically against the Mexican government. On Dec. 27, Gen. viewed how Guillermo Endara and his two vice presidents Maxwell Thurman refused landing rights for a plane sent by are linked to drug trafficking . Most of those links were report­ the Mexican governmentto remove Mexican nationals from ed in EIR, Jan . 5, 1990 ("Bush names drug mob capos to the scene of fighting, until the Mexican governmentcontact­ rule Panama" ). We provide selections of other articles here. ed the Endara puppets as the real "authorities" on the ground. After their plane had circled Panama City for as long as it Jornal do Brasil, Dec. 31: "Guillermo Endara, a Miserable could, Mexican authorities decided to contact the Endara Peon in the Americans' Game": group, but specifiedthat contact did not constitute the diplo­ Endara is called "Nhonho" by his political colleagues­ matic recognition of the Endara government that the United the name of a stupid fatso boy who wears a hat and short States was seeking. pants in a Mexican television series-while ordinary folk But if some governments have been intimidated, the pop­ call him Pan Dulce ("Sweetbreads"), fat and soft, Jornal ulations and legislatures of the region have not been. The reports. day after the invasion, the Mexican Congress unanimously He is a member of one of the poorerof the white oligarchi­ condemned the invasion. "For us Mexicans, this is the equiv­ cal families which have alterna�d power with the military alent of the French invasion of 1861, in which the same since 1904, the article reports. He "began his political life as pretexts were gi ven about the governmentthen-that of Pres­ an obscure commercial lawyer in Panama City, in the law ident Benito Juarez-not being able to guarantee the security firm ofGalileo Soliz, foreignminister in one of the Arnulfo of the lives of [foreign] citizens as are being given about Arias governments.. ..Through Soliz, Endara fell into the Panama today," one deputy said during the debate. good graces of Arias, who made him his legal counselor. Outrage against the U. S. occupation came from across " 'But "Nhonho" never gave Arias a juridical opinion. the political spectrum in Mexico. The popular opposition He was nothing more than the chief s briefcaseporter, always leader Cuauhtemoc Cardenas, widely believed to have been ready to shower him with praise and rapid in opening doors the real winner of the 1989 presidential elections, sent an for the leader,' said a Panamanian politician.. ..When open letter to Bush demanding the immediate withdrawal of Arias went into exile again, in 1980 ...Endara was chosen all U.S. troops, because the U.S. invasion "has no justifica­ his spokesman in Panama. 'The choice was more than logi­ tion, neither in law, nor in reason, nor in truth." Jesus Gonza­ cal, ' recalls a National Assembly deputy. 'Endara never had lez Schmall, foreign policy secretary of Mexico's National his own ideas; he was as faithful as a puppy and adored Action Party (PAN), wrote in an officialstatement Jan. 3 that repeating what Arias said .. .. "the [U.S.] attempt to take his [Noriega's] life is a certainty "The recent history of Panama is marked by disputes . . . that was the primary motivation for the occupation of between the aristocracy and the military, a split which the Panamanian territory by U.S. military forces." Americans always take advantage of to play one off against A similar resolution was endorsed the same day by the the other and keep their dominion over the country. " Argentine House, and the Bolivian Congress approved a res­ olution calling on all Latin American governments not to Jornal do Brasil, Jan. 2, front page, "Panama's Sovereignty recognize the puppet governmentin Panama. Only Survives on Paper":

38 National EIR January 12, 1990 "The finestflower of Panamanian society was represented Excelsior. Dec. 27: at the New Year's party in one of the Punta Paitilla mansions. "The horrifying lack of solidarity by all the Latin Ameri­ There were the Solizes, the Ariases, the Galindos, the Endar­ can governmentsand citizenries with the Panamanian cause, as-families of the country's white aristocracy which, with cannot but auger awful consequences for all. Amidst general­ the American invasion of the 20th, renewed their hopes of ized apathy, one Latin American country is about to disap­ freeing themselves of mixed-blood up-and-coming types like pear in the most violent attack on internationallaw , and few Gen. Manuel Antonio Noriega. . . stop to think that there is nothing stopping the process from "When a group of foreign journalistsasked if the Panama­ continuing into other latitudes of the continent. It is lamenta­ nian government would be able to firm itself up without the ble but predictable that U.S. presence in Panama will be presence of the gringos, the aristocrats responded with rage, long-lasting .. .. in impeccable English. 'This is our country. We are not going "Panama's requiem [is] the dirty diplomatic inauguration to keep licking the gringos' boots,' said one of them .. .. in Latin America of President Bush and those who applaud "The sons of the traditional Panamanian families did not him. In the midst of just a few months of 1989, which were differ in their bravado from the unfortunate Noriega. Only prodigious in shining achievements for democracy in the there is something ever more pathetic in their proclamations world, the U.S. behaved ominously, grotesquely. This of independence ....Panama 's sovereignty was always a augers a lugubrious decade, which, God help us, will last fiction. The only exceptions to the tradition of governments only ten years." obedient to Washington were, for differentreaso ns, Arnulfo Arias's, Omar Torrijos's, and Noriega's." Excelsior. by Luis Suarez, Dec. 28: "The true goal was to destroy the PDF and its Commander lornal do Brasil. Jan. 2: Manuel Antonio Noriega ....It is clear that the 25,000 or " 'Endara only exists today thanks to the Americans,' a 30,000 soldiers did not go to Panama for the head of 'drug presidential adviser admits. It's true. In the recent episode of trafficker' Noriega, but for the chief of the Defense Forces the invasion of the Nicaraguan embassy, for example, the who offered resistance to its plans for the Canal and also ambassador from that country, Antenor Ferrey, did not seek for the whole military institution, educated in his nationalist anyone from the country's government." He went straight to spirit. " U.S. ambassador Arthur Davis. "Julio Linares, Panama's own foreign relations minister, Excelsior. Dec. 27: sought out the U. S. embassy to learn how his government "The invasion demonstrated the urgency of uniting that should behave during that same Nicaraguan embassy crisis. part of the continent. . . . Agreements around an immediate A top U.S. diplomat, asked if it should have been the re­ end to the military occupation of Panama and restoration of verse-i.e., that, at least for protocol, someone from his its independence and sovereignty must be made. It should embassy should have gone to the minister's office-tried to be clear that the imposition of a government presided by give an explanation but ended up muddying up things even Guillermo Endara could not possibly mean a returnto consti­ more. 'In fact, Linares did not have to come here. We in­ tutional legality, broken by U.S. interventionism four stalled officesfor our diplomats in rooms in the Panamanian months ago .... foreign ministry. All he had to do was walk into one of them, ' "There will not be a legitimate national government in he said candidly. . . . Panama without immediate troop withdrawal and new elec­ "By overthrowing Noriega, the Americans returnedpow­ tions. During the next few days, news which is militarily er to an aristocracy which always has exercised power based controlled and generously induced with abundant dollars, on two untouchable pillars: nepotism and shameless favorit­ will try to give the world the image of a nice guy and popular ism to allies .... 'The invasion pulled Noriega's soldiers Endara, although his only support comes from the U.S. from power. But in their place, put other soldiers,' the Pana­ troops." manian deputy said ironically." The new police "are closely watched by American troops, Excelsior, by Raul Moreno Wonchee, Jan. 3: who have absolute control. . . . Based on anonymous tips­ "Not only are the sovereignty and security of every coun­ from Panamanians or American intelligence itself-Mad try at risk, but the United States seeks to annihilate a Latin Max's troops could enter any house and seize any person, American nation. The absorption of Puerto Rico is next on without needing a judicial warrant-something impossible the imperialist agenda. " in their home country. " Excelsior, Jose Luis Mejias, Jan. 3: Mexico "Latin America has been left with no remedy other than Mexican press and politicians also refu ted u.s. administra­ defending, by itself, its sovereignty, its dignity, its culture tion lies about the invasion and occupation . and even its race."

EIR )anuary 12, '1990 International 39 Pakistan Documentation Muslim, editorial, Dec. 22: "If it were to be accepted that a country has the right to invade another country in retaliation for the killing or wounding of some of its citizeI)s, then what would be there to prevent any country that has the capacity from doing the Internationalpress same? This is a dangerous argument which if accepted would sanction any state interfering where ever it pleased. . . . The real issue is no country has the right to decide what sort of attacks invasion government another country should have. Neither the Pana­ ma Canal Treaty, nor the United Nations Charter, nor the Charter of the Organization of American States (OAS) gives West Germany the U. S. that right, though all of these were cited by Secretary FranJifurter Allgemeine Zeitung, editorial, Jan. 3: of State James Baker in justifying the U.S. action." Attacking the Panama intervention is no "cheap anti­ Americanism" but justified. The Americans exceeded a mere Great Britain "surgical" military operation. The violation of diplomatic Independent, letter to the editor by Austen Ivereigh of immunity of the Nicaraguan ambassadorial residence, the Oxford, Dec. 28: acoustic war of nerves against the Nunciature of the Vatican, "Will the U.S. invade Britain to save Britons from 'Mad and "more grave even, the big number of deaths among the Thatcher'? The shocking aspec� has been the U.S. response. civilian population," have alarmed the world public. To the obvious argument that America has acted illegally by all standards of internation� l�w, the response of senators Italy on Newsnight was to say that Nqriega is insane. Mrs. Thatch­ Corrier� della Sera, editorial, Dec. 30: er, in recent inonths, has also �en going mad, but would we "The Nunciature is no colony. It is not admissible, from appreciate an American invasion to clean things up?" the standpoint of internationallaw , that a state invade another Guardian, Dec . 28 editorial: one, just because its head of state is accused, rightly or "George Bush went hunting and fishingfor a very long wrongly, of grave faults. . ..To this, one must add the week-end yesterday, which is probably the best place for arrogance used against the Apostolic Nunciaturein Panama, him. Whilst the earthquakes of freedom grow ever more arrogance that has not yet elicited adequate indignation. . . ." thunderous across Eastern Europe, all the President of the II Secolo XIX, editorial, Dec. 30: United States has to occupy his:time is a tedious and embar­ "The U.S.A. does not give up their imperial rights. No rassing wrangle with the Pope about the fate of General No­ international treaty grants the U.S.A. this right to invade. riega. And, so far, the Pope co�mands the high ground...... It is incredible that a crime defined in the internal law In spite of the U.S. troops who ring the refuge, in spite of of a state implies the right to occupy another state. . . . De much White House bluster, there is no reason for him to facto the U.S.A. adopted the Brezhnev Doctrine ....The change in mind; indeed, just sitting tight seems the best im­ toughness of the Holy See is clear: Today it is called upon to mediate policy." Insisting tha� Noriega has no chance . of defeQd human rights and international law in the face of the getting a fair trial in the U. S. and that Endara is acting like a U.S.A." perfect "Washington stooge," the paper says the Vatican's best course would be to keep Noriega for several months, East Asia waiting to see if a legitimate Panamanian government ever Philippine Newsday, Francisco S. Tadad, Dec. 22: actually develops. "Handing him over in any other circum­ "When one thinks that Mr. Bush came to power promis­ stance would be a mockery of justice." ing a kinder and gentler America, we can only thank our Daily Telegraph, Dec. 30: ' lucky stars that he is not committed to making America the .. Accuses U. S. forces of mim;ickingthe tactics of the "Chi­ mos.! dangerous nation in the world ....It seems to us­ nese during the Cultural Revolution" in its use of rock-music and so should it seem to our officials in Congress-that if psychological warfare against the Nuncio's office. "It is sad­ there is anything that concernsus here, it is America's inva­ dening that the Americans, whose forcible deposition of Gen­ sion of its puny little neighbor, not the political quarrel be­ eral Noriega we supported as warmly as Mrs. Thatcher, tween Nqpega and Endara." should now diminish their cau�e by resorting to such crude Daily Malaya, editorial, Dec. 22: and absurd tactics as playing heavy metal music through The U.S. "has. no compunction about riding roughshod loudspeakers. Aural warfare , practiced notably by the Chi­ over the sovereignty of another country if its vital interests nese during the Cultural Revolution, is an undignified way so require. Today,.Panama. Tomorrow?" of conducting diplomacy."

40 International EIR January 12, 1990 New monetarist scheme to stem collapse of Argentina's economy by Peter Rush and Cynthia Rush

After less than six months in power, the administration of of the Buenos Aires daily Clar(n , Curia's plan was thrown Argentine President Carlos Menem is facing a worse eco­ out only afterFinance Minister Ermumet with U.S. Ambas­ nomic and financialcrisis than that which it confrontedwhen sador Terence Todman on Dec. 29, and learnedthat the Bush it took over from social democrat Raul Alfonsin last July. administration would not back such a scheme. Todman also Prices were rising so rapidly as of Jan. 2 that many retailers reportedlyalluded to Argentina's criticisms of the U.S. inva­ refusedto even sell their goods for fear they wouldn't be able sion of Panama, as a further reason for not backing the pr0- to replace them except at a steep loss, while the currency, posed measures. Todman had made clear to Menem that the the austral, threatened to go into an unstoppable free fall in United States was displeased with the government's condem­ value. Inflation for December was thought to have been at nation of the invasion. least 140%, and possibly as high as 200% or more. Taking the side of the United States, it was Foreign Min­ In a desperate move, on Dec. 30 the Peronist government ister Cavallo and Alvaro Alsogaray who argued in cabinet embarked on a savagely monetarist economic program, mis­ meetings that the "dollarization" plan shouldn't be at­ named the "Lazarus Plan," in an attempt to stem inflation tempted, and who are now the most outspoken promoters of and bolster the value of the austral. Judging from the contents the rtew plan, claiming that this is theway to put Argentina's ofthe plan, and the fact that its architects are avowed moneta­ "house in order." Alsogaray is a follower of the Austrian rists-Foreign Minister Domingo Cavallo and foreign debt quack economist Friedrich von Hayek while the ambitious adviser Alvaro Alsogaray-Argentina's near-term future Cavallo, who covets his new post, is a prot�g� of Rudiger will be one of deeper economic depression. The role of the Dornbusch, residenteconomist at the MassachuSetts Institute Bush administration in shaping Argentina's economic policy of Technology. Cavallo traveled back and forth with Menem also merits close scrutiny. over the New Year's weekend, in the President's private Recent weeks of the Menem administration have been plane. Alsogaray, the man who helped to overthrow Juan characterized by extraordinary policy disarray. Finance Min­ Peron in 1955, went on national television to defend the new ister Nestor Rapanelli resignedDec . 15 after failing to slow plan. the fall of the austral with a sharp devaluation. His replace­ ment, Antonio Erman Gonzalez, immediately freed all pric­ 'Australs will become scarce' es, eliminated all controls on the exchange rate of the austral, What is the "Lazarus Plan"? ErmanGonzalez announced and permitted interest rates to rise "freely"-which they the details in a nationwide television address on Dec. 30. promptly did. Rates of up to 600% a month were registered The program is premised on a scheme that has never been by the end of December. attempted by any government in the 20th century: to make When these measures not only failed to stem the flight australs so scarce in the country that businesses and private from the austral, but amplified it, reports circulatedon Dec. individuals would becompelled to pay U.S. dollars forthem 29 that the government intended to announce a plan to "dol­ in order to meet legal obligations such as taxes. larize" the economy, including the creation of a new currency The idea behindthe new plan is to halt governmentprint­ tied to the dollar, signifying a large devaluation, imposition ing of money to pay exorbitantly high, short-term interest of harsh new austerity measures, and increasedpublic utility rates on fixed-termd eposits and on internal public debt, while rates. Economic Management Secretary Eduardo Curiawas forcingthe private sector of the economy to pay the govern­ the author of the plan, but he, too, was forced to resign on ment in australs. This is supposed to so limit the supply of Jan. 1 reportedly over presidential anger that the plan had australs that peoplewill literallybe bidding for them, forcing beenleaked to the media. up their price as measured in dollars, and supposedly rolling Menem told the nation on Dec. 31 that such a plan to back' the recent round of price increases. Ermu told the "dollarize" the economy had never been contemplated, mak­ country in his televised address thatthe austral "would cease ing Curia look like a liar. But according to the Jan. 4 edition to be the instrument ofour self-destruction."

EIR January 12, 1990 International 41 The plan eliminates at a single stroke the so-called plazos severe loss on the item. Many pharmacies, in particular, jijos, short-term deposits that millions of Argentine citizens, were reported to be unwilling to sell drugs, even in cases of and even many large businesses, have become dependent on medical emergency. in times of rapidly rising prices, to try to stay ahead of infla­ But many economists area1�ady warningthat the Argen­ ' tion. Henceforth, instead of being paid in australs at up to tine economy is very close to full collapse, despite these 600% a month interest-australs which the government has initial "successes." been reduced to just printing-Erman Gonzalez announced The new measureshave provoked reactions of panic and that interest and principal on these deposits would be paid anger in a broad stratum of the population suddenly denied not in cash at all , but in Argentine governmentdollar-denom­ the use of most of their mon�y. "Credit has all but dried up," inated bonds called "ExternalBon ds," or Bonex. The interest economist Enrique Szewach told Reuters news service. "The rates on the Bonex are in line with international interest rates question is whether the Central Bank will ease its restrictions for U. S. dollar deposits. to help banks." One European banker reported that business­ The same substitution has been decreed for fixed-term es that had placed large amounts of money in short-term government bonds constituting much of the nation's internal deposits were now left holding the Bonex bonds, and could debt. Many commentators noted that the Bonex will become be forced to default on their payments. Daniel Muchnik, a virtual parallel currency, and analysts are referring to the chief economics columnist for the daily Clarin , pointed out "Bonexization" of the economy. The measure is reminiscent that the plan was tantamount to dollarization, and that this of a similar one adopted by Erman when he was in charge of would worsen the standard of living of a broad spectrum of finances for the province of La Rioja under then-governor the population. "Everything indicates recession," he wrote Menem, and issued provincial bonds that functioned in place Jan. 3. Economist Roberto Frenkel predicted "a brutal re­ of currency. cession." According to the new plan, investors will be permitted Others are pointedly asking' how the government, or the to withdraw no more than 1 million australs in cash-the private sector, intends to pay the 30,000 austral ($15) bonus equivalent of about $500-and companies dependent on aus­ promised the workforce. And it is entirely unclear how retail­ trals for meeting their payrolls will be permitted to receive ers will pay their suppliers for goods to restock their stores. enough for this purpose. But any individual or business found Still others are questioning the legality of the measures, and abusing or cheating on the new regulations, will be hit with anticipate immediate court challenges to the package. the full force of the law, Erman announced. Organizations of independent economists warnthat the A second set of measures is designed to force companies measures will provoke a general collapse of the banking and to spend U.S. dollars they have been hoarding, and buy retail trade systems, reports Brazil's 0 Globo Jan. 4. Bank australs. Erman announced that henceforth, companies will depositors will lose all incentives to deposit funds in banks. be compelled to pay their full assessed tax burden, in australs, They also predict that the chain of supply from manufacturer on time, or face being seized by the government and sold to wholesaler to retailer is threatened with breakdown as off-the "privatization of private companies," as Erman put companies will lack the australs to pay. "Heterodox econo­ it-to pay the obligations. mists call the measures crazY"',and doubt they can even be

The finance minister advised Argentines that australs "are applied, 0 Globo reports. going to be very scare and valuable. Be careful. Don't be Another question mark is how the government will keep pressured into spending them. Wait until prices returnto the the Bonex from losing value, as the government obligates levels they had before Christmas, because the increases in itselffor billions of U.S. dollars that it doesn't have. Argenti­ the past week are totally unjustifiedand the fruit of a type of na's U.S. dollar reserves are currently at only $880 million, collective hysteria," he said. Erman announced. The minister stated that he is seeking It is reported that in the firstday after the measures were several billions in U.S. dollar loans to back up the plan, but implemented, Jan. 4, retailers did sharplylower their prices, that is a very doubtful prospect at present. Erman is seeking and the austral-dollar exchange rate did return to pre-Christ­ a bridge loan from the United States, but, as the Wall Street mas levels of around 1,200. But other consequences of the Journal observed, "there is almost an inertia in Washington measures may make these gains very short-lived. about Argentina." The International Monetary Fund has a team in the country now and is reportedto be very upset with More recession? the government's economic performance. By Jan. 5, the announced measures had led to a 50.3% Menem meanwhile has made clear that he will admit no revaluation ofthe austral and a drop in some consumer prices, public criticisms of his economic plan, either from anyone just as the government had predicted they would. Just a few inside the government, or from the Peronist party. "This is days earlier, many storeowners had refused to sell their the government plan, and whoever wants to criticize it or is wares, for fear that by the time they reordered their products, in disagreement with it should submit his resignation," he the price would have risen so far that the store would take a told his cabinet.

42 International EIR January 12, 1990 merit in an earlier day, before the travesty of the Geneva Accords. It will no doubt be welcomed by the unsuspecting. But its appeal hides highly disturbing realities-not the least Another coverup of which is the implication for Pakisilln, where 3 million refugees are a not inconsiderable political and economic bur­ in Mghanistan den. But there is more to it. First, while Moscow was loading up the Kabul regime by Ramtanu Maitra with massive shipments of arms, including sophisticated rockets and rocket launchers, the supply of U. S. weapons to the Afghan mujahideen-the rag-tag coalition that the Bush Afteralmost a year of prevarication, President George Bush administration was allegedly backing to militarily dislodge is now ready to wash his hands of Afghanistan. Judging from the Moscow-supported Najibullah regime-remained sus­ recent reports, Washington and Moscow are preparing to pended from Februaryto August 1989! On Feb. 15 the Sovi­ sign the much-touted "negative symmetry" accord, whereby ets finally withdrew from Afghanistan, it will be recalled, both the United States and U.S.S.R. will formally agree to and the United States was telling all and sundry at that time stop arming their respective clients. It is also reported that that the mujahideen would overrun the Kabul regime within the signing will take place in the early part of this year, so as weeks. Never mind that the mujahideen were using single­ to remove yet another thorn irritating the Bush-Gorbachov barrel 122 mm rockets, the most sophisticated weapon in embrace before their planned June summit. their armory, for attacks on Kabul. These rockets, experts Bush's decision to remove Afghanistan as an issue of agree , are unreliable. They often go wide of the mark, their mutual disagreement to make the summit a pleasant one be­ launching system is relatively primitive, and they have no came apparent when U.S. Assistant Secretary of State John controlling device, the mujahideen claim. Kelly visited Pakistan in October and aired such a prospect Under the circumstances, one is compelled to wonder as to Pakistani Prime Minister Benazir Bhutto. Earlier, chair­ to who benefited from the Bush administration claim that the man of the Senate Foreign Relations Committee Claiborne Kabul regime would fall in no time. Besides the fact that that Pell (D-R.I.), with committee stafferPeter Galbraith (a per­ did not happen, those disarming claims, so to speak, only sonal friend of Bhutto) in tow, visited Pakistan and urged the helped Kabul's Najibullah to procure more arms from Mos­ Bush administration to promote a "political settlement" of cow and strengthen himself militarily and politically. The the Afghan problem. Pell, a Democrat, said on that occasion ruse also helped to further discredit the mujahideen and set that the United States should seek an agreement on "negative them off against each other. symmetry" with the Soviet Union. According to those in the know, the Bush administra­ These two visits , along with on-and-offdiscussi ons with tion's vociferous claim that the mujahideen would overrun U.S. Ambassador Robert Oakley, gave Bhutto the proverbial the armed-to-the-teeth Kabul regime was so ridiculous that "willies." She realized that a deal was in process, and Presi­ it had to be a big lie. It was widely appreciated that the dent Bush was ready to forget Afghanistan so as to befriend Afghan Interim Government (AIG), set up by the late Paki­ Mikhail Gorbachov. Later, a few days before Bush crawled stan President Zia ul-Haq's henchmen and a few CIA opera­ into the Soviet destroyer offMalta , Bhutto sent Inter-Servic­ tives, was a mere sham led by such little-known individuals es Intelligence (lSI) chief Lt. Gen. Shamsur Rahman Kallou as Yunus Khalis (one Afghan observer says of Khalis: "You (ret.) to Washington to urge U. S. authorities to keep the could not even discover him with a microscope, if you resolution of Afghanistan on the agenda. That, it seems, searched for him in Afghanistan then [before the Soviet inva­ fell on deaf ears. At Malta, according to reports, both sides sion]"), Burhanuddin Rabbani, Rasul Sayyaf (both were ob­ recorded their differences over the role of the Najibullah scure professors before they became "leaders"), and Gulbud­ regime in any future dispensation in Afghanistan. In plain din Hikmatyar, whose past is riddled with violence and mis­ language, it simply means that the war goes on, and another deeds. Apart from the National Islamic Federation of Af­ killing season for Afghanistan has been secured by the super­ ghanistan (NIFA) leader Sayad Ahmed Gailani no one in the powers. AIG was well known to the Afghans before Zia and Bush's On Dec . 17, U.S. Rep. Stephen Solarz (D-N.Y.) came to men made them into "national leaders." Indeed, many edu­ Pakistan "to discuss subjects of mutual interest, both bilateral cated Afghans and others, including this author, had said it and international." More visitors from the United States are would not be easy to defeat the Kabul regime with this Bush­ expected this month. Zia army known as the AIG. More to the point, it was also known that the Kabul Implications of 'negative symmetry' regime was at its weakest when the Soviets lefton Feb. 15, From a formal technical standpoint, there is nothing and that Dr. Najibullah, in order to save this own neck, wrong with "negative symmetry," and it had real political would have been ready to agree to a broad-based coalition

EIR January 12, 1990 International 43 government in which the role of the ruling People's Demo­ ' cratic Party of Afghanistan (PDPA) would be minor. These . facts were known to educated Afghans and told to the Ameri­ cans, but were given short shrift by the latter under the pretext that the Najibullah regime would be swiftly brought to its knees by the Bush-Zia army. The rest is history, and the Gorbachov-Vorontsov-Shevardnadze troika now tells Presi­ dent Bush that the only deal Washington will get is "negative The planning anal development of symmetry. " wooded sites throughout the continental United States as eB as Why the ruse? When AIG President Sibghatullah Mojaddedi met with r .il:1GI'� The development of urban and President Bush for 30 minutes in Washington Nov. 27, the suburban planting areas and U.S. President promised the Afghan leader continuing sup­ port to set up a broad-based governmentin Kabul. President The planning of individual Bush did not promise Mojaddedi that he would make the homes subdivisions or removal of Najibullah an issue with the Soviet Union. With indU a, park' this the last shred of doubt as to the nature of the Bush administration's Afghanistan policy ought to have vanished. The rah-rah "policy" of removing Najibullah militarily stands T in direct contradiction to what the administration is and has For further info�mation and availability please contact Perry Crawford III been doing with its hands and feet, as confirmedby Bush to . Mojaddedi . More important perhaps, President Bush has left Prime Crawford Tree and Services 8530 West Minister Bhutto in the lurch. To this day Bhutto insists that Milwaukee, \I\li�:r.nr,,::in a broad-based coalition governmentin Kabul is only possible if Najibullah steps down. This leaves us with the unanswered question: Why did Bush, who earlier had headed the CIA and certainly was not unaware of various CIA covert operations, want everyone to believe that the Sayyafs and Hikmatyars and Rabbanis and In Defense Policy Khalis, without any arms supply from the United States, an as a would make mincemeat of the well-trained and well-en­ Military P enomenon trenched Kabul army? Is it because the Pakistani lSI and his own CIA sold him a dud? Or, was it done deliberately, in order to weaken the Afghan resistance in the quest for a cozy deal with Moscow, throwing the Afghans to the dogs and worse? One or both of these is certainly true; but there are most likely other reasons as well. by Professor Friedrich August According to one Afghan intellectual, who spoke anony­ F�hr. von der Heydte mously to a journalist writing for the Bombay-based Eco­ nomic and Political Weekly, there was money in it. This source pointed out, for example, that Yunus Khalis had a Order from : small bicycle repair shop in Afghanistan before he left. "But Ben Franklin now Khalis owns one of the largest automobile parts shops Booksellers, Inc. in the Saddar area of Peshawar. He also owns more than 50 27 South King St. flying motor coaches which run the route between Swat and leesburg, VA 22075 Dir," he added. It is now acknowledged that Afghanistan has become the $9.95 plus shipping single largest producer of opium-and opium means heroin, ($1 .50 for first book, and heroin, to some, means money. The nexus between $.50 for each additional book.) drugs, arms, money, and the CIA, among other covert opera­ Bulk rates available. tors, is slowly coming to light. Perhaps President Bush want to cut his losses before it bursts open in Afghanistan.

44 International EIR January 12, 1990 and actual crimes against the human race. Book Review In January 1990, the Global Forumconglomerate is mov­ ing on to Moscow, so Anuradha Vittachi's book is highly recommended, in accordance with the useful practice of "know thine enemy." Her book is about the firstGlobal Fo­ rum of Spiritual and Parliamentary Leaders for Human Sur­ vival. The second Global Forum is meeting in the Soviet capital from Jan. 13-19, on the theme, "Environment and Development for Survival." It is being co-hosted by the Sovi­ et Academy of Sciences, the Supreme Soviet, the Soviet-run Green International Foundation for the Survival and Development fascists plot of Humanity, and all the religious communities of the U.S.S.R. coordinated by the Russian Orthodox Church, and against humanity is expected to bring together over 700 participants from by Mark Burdman around the world, the majority of them from the U.S.S.R. itself. Soviet leader Mikhail Gorbachov is due to address the attendees on Jan. 19 at the Kremlin. That day's proceedings are to be broadcast to 100 countries in the world, via the Earth Conference One: Sharinga Vision for Our Planet first-time-in-history cooperationbetween the Soviet's "Inter­ by Anuradha Vittachi Sputnik" satellite company and the "Intelsat" company in the Shambala Publications, Boston, 1989 West. 146 pages (with index), paperbound, $8.95 There are strong ironies in Gorbachov's pontificatingbe­ fore this crew. While the Soviet Union indeed is undergoing a profound, if not desperate ecological breakdown crisis, that In post-Ceausescu Romania, one anecdote about the life of crisis can only become catastrophic if the Soviets were to Nicolae Ceausescu's degenerate son Nicu has universal sig­ adopt the policies of the "Global Forum" Mother-Earth wor­ nificance beyond Romania itself. It has been revealed, that shipers. What the Soviet Union would need to deal with while Romania's people were starving, Nicu was storing up its ecological collapse, is the widespread application in the vast amounts of caviar for his own private use, and had two society as a whole, of those space, electromagnetic, and laser personal maids just to feed him caviar and champagne. technologies that they are now developing, albeit primarily This recalls a scene described in Anuradha Vittachi's for military applications. That is, the Soviets need precisely book, Earth Conference One: Sharing a Vision/or Our Plan­ that "technological wizardry" and "technological interven­ et: There they are, 200 individuals who are supposedly tion" that Vittachi and cohorts are fanatically against. Adopt­ among the world's most enlightened and caring representa­ ing "sustainable agriculture" would bejust what is needed to tives, attending the Global Forum of Spiritual and Parliamen­ push the U.S. S. R. foodsituation over the edge into the abyss. tary Leaders on Human Survival at Oxford University in What Gorbachov is encouraging by hosting the Global April 1988. Midweek, as the conference is going on, they Forum event, is the growth of such Russian blood-and-soil aregiven a feast at Blenheim Palace, the palace that was built neo-fascist groups as Pamyat, which adopt "ecological" as the residence of the brutal Lord Marlborough in the early ideas, such as "bio-dynamic alternative agriculture," as part 18th century. For several days the Global Forum attendees of their "Mother Russia" cultism. Pamyat shares with Soviet have been discussing the virtues of reducing the world's "green" groups like the Soviet branch of Greenpeace, an standard of living, ending technological progress, reviving ideological fixation thatthe pollution of "Mother Russia" has "Mother Earth" cults, and replacing the human ego and hu­ been caused by the intrusion of "Western technology" and man free will with regressionto infantile states. At Blenheim related influences. U.S.S.R.-Greenpeace head Alexander Palace, they get their just reward: ample supplies of caviar. Yablokov said exactly this in mid-September 1989, when he One of the few things to author Vittachi's credit, is that claimed that the U.S.S.R. 's "already polluted environment she expresses guilt feelings about having been feasted so was being worsened by economic development [and by] the lavishly, after all the pious words at the conference about ecological exploitation by the West." being in atonement with the starving and poor. But her gUilt The prominent involvement of the Russian Orthodox feelings aside, her book demonstrates that the global ecologi­ Church is an important singUlarity in the Jan. 13-19 Moscow cal movement is to the world's neo-feudalist oligarchical activities. The ROC is the foundation-stone for the "Russian interests, what the bloody Securitate was to the Ceausescu party" in Soviet politics. The stronger this "Russian party" family. The book is a monstrous self-indictment, of intended gets, under conditions of continuing collapse of the Soviet

ElK January 12, 1990 International 45 economy induced in part by "ecological" lunacy, the more human race, to submit humans to pathological mother-depen­ likely it becomes that this Frankenstein monster will tum dency states of mind, in which humans are induced to be­ against Gorbachov. lieve, as Vittachi says, that they are "umbilically linked to So, as one wag commented, the Western participants at Gaia." the Jan. 13-19 events might have thought their real mission Vittachi employs the worst kinds of sophistries and hy­ in coming to Moscow was not "human survival," but "Gorba­ pocrisies. Posing as lover of peace, she attacks human be­ chov's survival," yet, in their ecological zeal, they may help ing's propensity to have "enemies." But her book is filled bring about his downfall! with diatribes against "technological wizardry," "technologi­ cal intervention," "the human ego," "free will," and the "mil­ 'Terror' against Socrates and Leibniz itary-industrial complex" as among her vast array of "ene­ Although Vittachi obsessively uses words like "love" to mies." "Only humans, with our free will, are disorderly," describe the atmosphere at the April 1988 Oxford proceed­ whereas Mother Nature, even when she belches out volcanic ings, the Global Forum event was actually a hate-filledorgy eruptions, "follows order." Elsewhere, in a chapter entitled against the existence of the human race itself. The philosoph­ "The Case Against Technology," she writes: "At times dur­ ical guru was James Lovelock, the creator of the "Gaia"­ ing the conference, it sounded like technology was our real Mother Earth hypothesis, who authors the book's foreword. enemy." In a speech to the Oxford gathering, he attacked Socrates for Of course, to achieve an ecological-fascist world order, having been a steadfast supporter of cities and urban culture. human ego and free will must be destroyed. In her view, the City life, Lovelock declared, "reinforces and strengthens the human ego is the "spanner in the works . . . which clings heresy of humanism." to the false reality that it could-or should--dominate its In a similar vein, Father Thomas Berry of the Riverside surroundings." And Gaia is not a very kind mother: She will Center in the United States raved that " 'progress' is the "eliminate us with no pity" if we don't stop "exploiting the central word of modem civilization. It's the central word of Earth in the name of technologicalefficiency and progress." the industrial order-an order that did not come through Vittachi et al.'s main enemy is the very process ofhuman spiritual means. In the 17th century the Westernworld decid­ development. She positively cites quack scientist Carl Sa­ ed, 'We'll do it with technology, with science.' " gan's yearningfor the days, 10,000 years ago, when human This is an unmistakable attack on the great 17th-century beings ostensibly lived in "hunting-and-gathering" societies, philosopher and scientist Gottfried Wilhelm Leibniz, who before progress was made to stablize agricultural develop­ first coined the term "technology." Berry frankly stated that ment, before "human aspirations" prevailed over "natural the only way to destroy this tradition was by "Terror. Some­ paths." thing has to crash." There is much other evidence in the book, ofthe disgust­ Indeed, a global Securitate ! ing hypocrisy of the environmentalist movement, which po­ That such blatant attacks would be made against such sitions itself vis-a-vis the human race as a parasite positions philosophical ancestors of Lyndon LaRouche as Socrates and itself vis-a-vis the host. The very act of getting high priests Leibniz is hardly surprising, in view of the fact that two of from Togo, or Tibet, to the cQnference required airplanes, the "Global Forum" coordinators, Manuel Ulloa of Peru and pure examples of "technological wizardry ." Likewise, the Rev. James Park Morton of New York's Cathedral of St. Blenheim Palace caviar feast mentioned above is no more John the Divine, are bitter enemies of LaRouche. A third an isolated phenomenon than was the Ceausescu regime in coordinator is Sheikh Ahmed Kustaro, the Grand Mufti of Romania. The eco-fascist movement is massively funded, Hafez Assad's Syria. Syria is an important base for Gnostic, and, frankly, uses massive amountsof the world's resources. Islamic fundamentalist, and Nazi-modeled cults, as well as While Carl Sagan and Gorbachpv disarmament adviser Yev­ being a chief coordination center for the international drug geni Velikhov could moan at Oxford about the world's vast trade. defense budgets (and especially about the American Strategic Defense Initiative program), tJ1e question could be posed, 'Technology was our real enemy' how many billions of dollars ar� now going into foundations, Author Vittachi expresses great admiration for Arnold grassroots movements, government agencies, etc., to en­ Toynbee, particularly those sections of Toynbee's book force a genocidal neo-malthustan order on the world? How Mankind and Mother Earth in which he attacks the 5,000- much money and resources does Greenpeace have at its dis­ year tradition of the sovereign nation-state, and asserts, posal, or, for that matter, Church of England head Dr. Robert "What has been needed for the last 5,000 years is a global Runcie, one of the honored participants at the Oxford meet­ body politic composed of cells on the scale of the Neolithic ing? And with what resources can the Soviet state, while its Age village-community." What she is actually recommend­ population has less and less food, somehow manage to put ing, by projecting the Oxford conference as a useful model up visitors at the Rossiya Hotel in Moscow for this Global for the human race as a whole, is the brainwashing of the Forum extravaganza?

46 International EIR January 12, 1990 Greenpeace is welcome in Moscow as a tool for globalg enocide

Part II of an EIR Investigation

A year ago, then-British Minister of Defense Michael Hesel­ because of it, scientists in the "world peace movement now tine warnedagainst "Green geopolitics" and a Soviet attempt have the advantage [of being] set up, so to speak, at the to exploit the Green movement exactly as they had done with highest level." The founding members were able to talk for the peace movement in the 1960s and 1970s, in order to hours with Gorbachov, who supported the project "to the influencepublic opinion against Westerndefense policies. At best of his ability." According to Durr, "We have thus re­ the time of Heseltine' s statement, Communist Party General ceived, so to speak, the higher internationalconsecratio ns." ' Secretary Mikhail Gorbachov and his foreign minister Edu­ This foundation seems to stand in the center of the "Green ard Shevardnadze had just demanded the creation of a "Unit­ International. " It is closely tied to the internationalcommunist ed·Nations Ecological Security Council," which could take frontorganization called the World Peace Council and its na­ any measures necessary against nations that failed to cooper­ tional sections, as well as to the already-mentioned Soviet ate. Heseltine emphasized that the West must resolutely as­ Peace Committee. It is also tied to Soviet support organiza­ sert itself against the danger of being undermined by Soviet tions for the Global Challenges Network, founded by Profes­ "green peace" tactics. sor Durr in 1987, an "internationalthink tank for peace" ac­ His warning was well-founded. In the official organ of cording to Unsere Zeit, in which Velikhov and Georgii Arba­ the Soviet Foreign Ministry , the man who has run the KGB tov of the U.S .A.-Canada Institute participate. Cooperative since Sept. 30, 1988, Vladimir Kryuchkov, has lately de­ work is'planned with Greenpeace International, Global 2000, manded that "minorities" in Western countries such as the the Club of Rome, the Pugwash Conference, and the United Greens and the peace movement "be used as a vehicle for Nations. The foundation, whose financing"as well as the ma­ change of the majority." "We have developed new concepts terial and intellectual participation of the Soviet public" Gor­ and new methods to use these forces," he said. Earlier, in bachov is said to have personally guaranteed, shares with June 1987, an organization named Greenpeace was created Greenpeace the revenues of what is, according to the Finan­ under the auspices of the Soviet Committee for Securing the cial Times. a gigantic joint venture, the sale of the rock album Peace (which itself had also been fo unded "from above"), "Breakthrough," produced by the Soviet record company and Soviet contacts with Western ecological groups such as Melodiya. In March, under the headline "Greenpeace Joins," Robin Hood, the World Wildlife Fund, and Greenpeace were the officialSoviet mouthpiece New Times reportedthat "Any­ steadily intensified. "We need a Green International," de­ one who buys this album can consider himself to be a member manded Soviet writer and environmentalist Sergei Salygin. of Greenpeace. That is to say, Greenpeace will soon have In 1989, Greenpeace opened its own office in Moscow, millions of new members in the Soviet Union." making the U.S.S.R. the 32nd nation where it has an outpost. Who is Professor Durr, who received the highest Soviet The West Berlin-based "alternative" newspapertageszeitung blessings? In 1987, he received the "alternativeNobel Prize" reportsthat Greenpeace enjoys close contacts with the Inter­ for his services to the peace movement and his "profound national Foundation for Survival and the Development of criticism" of the U.S. Strategic Defense Initiative (SOl). Humanity. "The bridge to the apparatus for Greenpeace is Durr advocates that there should be a worldwide group of the Academy of Sciences. Discussions with the environmen­ 100 people possessing "the power and the oversight" to attack talists are carried on by the director for nuclear affairs, Yev­ urgent tasks globally. Naturally, he would include himself geni P. Velikhov," tageszeitung reports . in that number, and is also a member of the executive com­ That foundation was established in Moscow at the begin­ mittee of the West German Greenpeace organization. ning of 198ft Velikhov is one of the vice presidents, and The worldwide Greenpeace organization represents the founding member Prof. Hans Peter Durr proudly told the merger of "green" and "peace" themes. The firstGreenpeace West German Communist Party newspaper Unsere Zeit that, group was formed 20 years ago by American and Canadian

EIR January 12, 1990 International 47 draft resisters. At the end of 1971, the first protest occurred dock to greet the ship, which was merely forced to leave the against U.S. nuclear tests at Amchitka, Alaska. The U.S. harbor, afterthe crew had released 2,000 protest balloons. test program in the Aleutian Islands was abandoned at the • In 1983, the Greenpeace ship Rainbow Warrior, sup­ end of 1972. At about the same time, Greenpeace di�ted posedly undetected, penetrated Soviet waters off Siberia. Six even more intensive protests against French nuclear tests in crew members landed on the Chukchi Peninsula to document the South Pacific---even though France is responsible for Soviet violations of the moratorium on whale hunting. only 8% of the nuclear explosions in the world. When the Greenpeace had informed then Soviet leader (and former current president of Greenpeace, David McTaggart, began head of the KGB) Yuri Andropov of the action 14 days the Mission Greenpeace III in mid-1972, Nobel Peace Price earlier. All that happenedwas that some people were arrested winner Linus Pauling-who is, in the words of an expert in by a couple of soldiers whose attitudes ranged from polite to Eastern secret diplomacy, a part of the "living inventory" friendly, and then after a few daysthe protesters began their of the Soviet propaganda apparatus-as well as Jean-Paul trip home unharmed and treated as friends. Sartre , Jacques Cousteau, the World Council of Churches, • At a protest by Greenpeace in Karlovy Vary in the and the Sierra Club all supported the effort. McTaggart re­ Czechoslovakia, the police intervened after a Czech banner ported on aid from the World Federalists and the French against acid rain was unfurled. The demonstrators were fined Friends of the Earth-all protagonists of a strict ecological the equivalent of $10 apiece, and had to leave the country. global policy. • "With surprising ease," according to the press, Green­ In the extensive propaganda literature that Greenpeace peace received permission from Soviet officials in 1986 to has thrown onto the market, there are, of course, criticisms set up an information booth at an international exhibition of of all the nuclear powers. Most striking are the especially environmentalprotection technology. sharp attacks on the French, which even under Socialist Pres­ • In 1987, five Greenpeace demonstrators in Dresden ident Fran<;ois Mitterrand has allowed no curtailment of its were able to distribute all their leaflets against pollution of national sovereignty and its independent nuclear defense. the North Sea. The police removed the Greenpeace sign on Equally striking is Greenpeace' s consonance with Soviet dis­ a heavily traveled bridge only after more than an hour. All armament rhetoric. According to that propaganda, the United demonstrators were allowed to leave unhindered. States is to blame for the Soviet Union's having ended its 18- • In the summer of 1988, a Greenpeace laboratory bus month unilateral nuclear test moratorium in February 1987 traveled with official "toleration" through the Soviet Union (a moratorium announced by Moscow just as a Soviet series to take water samples, and was even displayed at a marine of tests came to an end). The U.S. "Star Wars program"­ technology trade fair in Leningrad. In Poland, Greenpeace that is, the SOl-is portrayed as a dangerous driver for fur­ was even allowed to take water samples in a military security ther armament and as a violation of internationaltreatie s. An area. article that received much emphasis in Greenpeace-Nach­ • In October 1988, a Greenpeace delegation traveled richten (Greenpeac e News) , which inaugurated a new cam­ from Hamburg to Moscow to negotiate a common "environ­ paign against naval nuclear weapons, representedthe Soviet mental education program" for Russian and German naval strategy as "defensive." In 1981, the West German children. weekly magazine Der Sp iegel published a book against sta­ • In July 1989, a Greenpeace "commando unit" boarded tioning U.S. Pershing missiles on West German soil, au­ a Soviet submarine, and attached a black and yellow banner thored by Der Sp iegel editor Wilhelm Bittorf, who is now a to the sub. According to Greenpeace, a Soviet officer then member of the West German Greenpeace executive com­ threw the banner overboard. mittee. • In August, after Greenpeace had established itself in At the end of 1986, in an article headlined' "Greenpeace the Soviet Union with the support of Velikhov and Roald is causing quite a stir in Moscow," the liberal Frankfurter Sagdeev, the head of the Soviet space program as well as a Rundschau commented, "For official Moscow, Greenpeace leading member of the Soviet Academy of Science, a Green­ is as welcome as the Greens because both-the one because peace delegation traveled to l.eningrad on invitation of the of the nuclear test ban moratorium, the other in general­ Soviet Organizing Committee for Peace, Culture and Ecolo­ support the Soviet arms control initiative." gy. During the trip there, the Greenpeace ship circled the Soviet ice breakerTaimir and received "remarkably friendly Kid-glove treatment gestures,"according to Greenpeace lobbyist Jiirgen Streich, Greenpeace actions directed against environmental writing in the newspaper Deutsche Volkzeitungldie tat, Sovi­ abuses in the East bloc consequently encountered mild reac­ et television carried a friendly report on the Leningrad visit. tions from communist governments: ' Journalists from the official Soviet news services Novosti • In July 1982, the Greenpeace ship Sirius entered the and TASS helpedtheir Westerncolleagues with the transmis­ Leningrad harbor to protest against nuclear tests. An official sion of photos and text to their. Westerneditors . representative of the Soviet peace committee waited at the To be continued.

48 International EIR January 12, 1990 Triumph of Czechoslovakia's revolution Prague celebrates itsJreedom in the New Year: an eyewitness report by Laurent Murawiec.

"The slogan 'better Red than dead' does not irritate me as an ers, and people informed me that the words had been expression of surrender to the Soviet Union, but it terrifies changed: "It is an anti-Bolshevik song," they said. Humor me as an expression of the renunciation by Westernpeople was not missing, as peoplereported that "we had a great time of any claim to a meaningful life and of their acceptance of looking at the face of our parliamentarians on television" the impersonal power as such. For what the slogan really says is week before, when those Communist deputies elected the that nothing is worth giving one's life for." Thus spoke, in long-ostracized Alexander Dubcek to the position of Speaker the year 1984, Vaclav Havel, who was elected the President of the Parliament, thus closing the parenthesis opened by the of the Czechoslovak Republic on Dec. 29, 1989. Those Aug. 21, 1968 military invasion by Soviet and Warsaw Pact words symbolize the moral integrity and intellectual strength forces. "I see this as a moral vindication for the hundreds of the revolution which swept away 40 years of colonial of thousands of active participants in the Prague Spring," communist power within two short weeks. Dubcek said. His own election was highly symbolic: Rather A retired worker, met in the street, explained in broken than giving him much politicalpower, it was the state making German: "We've had 40 years of communism, and it was all amends. bad. We'll never have it again. Havel is our man, he is our On New Year's day, state television aired a performance President. He could have gone into exile, emigrated. But he of Beethoven's Ninth Symphony, which fitted marvelously stayed with us, he chose to fight here, whatever the cost to with a city of Prague covered with the national colors, those him." And from the handful of intellectuals who signed the hundreds of thousands of flags alongside as many portraits Charter 77 document, which established the existence of an of Vacia v Havel, the President who was in jail as recently as opposition to the Russians' colonial puppets in 1977, grew a May 1989. movement that has now taken power. After the students and the actors of Prague initiated the movement, in mid-Novem­ 'Spiritual crossroad of Europe' ber, it was a matter of days before workers joined, and with In his inaugural speech, on Jan. 1, Havel minced no them, virtually the entire nation. words: "Our state should never again be an appendage or a Havel's election by a vote of Parliament "opened a new poor relative of anyone else," he said-no appendage to the era in our history," a professor said, and Havel, the play­ Soviet Union, and no poor relative of anyone in the West, wright, lost no time in making it concrete: For his first trip especially not those who betrayed Czechoslovakia in 1938 abroad, he chose Berlin and Munich, and manifested the with the Munich agreements made with Hitler, who con­ independence of the new power by saying, "Europe need doned the Communist coup d' etat in 1948, and remained have no fear of a democratic Germany. It can be as large as passive in 1968 when the Soviet tanks rolled in. "We are a it wants," flying in the face of those who try to slow down small country. yet at one time, we were the spiritual crossroad the EasternEuropean freedom fighters. of Europe. Is there a reason why we cannot become one once On New Year's Eve, 150,000 inhabitants of Prague had again?" gathered on Wenceslas Square for a most unusual celebra­ I see every reason why that should be so. The ancient tion, that of their freedom. While each of them had a bottle nation of Bohemia, Christianized in the ninth century, was of champagne, and many were joyously drunken, they were indeed the intellectual capital of Europe. It is there that in the not there to "have a good time," but to shed tears of joy after 14th century the Bohemian King, Charles IV, Holy Roman the decades of oppression. They chanted: "A( zii Have/!" Emperor. established the Universitas Carolina, the firstGer­ ("Long live Have!!") An inscription painted on a wall, on the man-speaking university in Europe. It is there that the Italian square, proudly proclaimed: "It's all over-Czechs are free !" poet Petrarca went, in the same century, to launch the great They sang "We Shall Overcome," in Czech and in English. language project from which modem German-and modem The national anthem was sung, and the "Prayer for the Father­ Czech--emerged. Prague was the center of the movement land" was sung by a popular singer: Public performance of that did so much to establish the national identity of the her songs had been banned for 20 years, as well as her song. Czechs, that of Magister Jan Hus the reformer, burned at the A beautiful Renaissance song was played on the loudspeak- stake in 1415 at the Council of Constance. Prague, perhaps

EIR January 12, 1990 International 49 the most beautiful city in Europe, was the melting-pot where an exceptional culture was conceived, "by a collaboration and a confluence of Czechs, Jews, and Germans," as the Czechs proudly say. It was the city of Mozart, Dvorak, and Smetana. It is not that the Czechs and the Slovaks had an easy way, as a small nation squeezed between competing empires. In 1620, the army of the Czech Protestants was savaged by the troops of the Catholic Hapsburg Emperor at the Battle of the White Mountain, and Bohemia disappeared for three centu­ ries as an independent entity. The Czech tongue was banned, considered only a language for coachmen, domestics, and serfs . A foreign power occupied the land, and stole it from its owners-just as the Nazis did later, and shortly thereafter, their Russian accomplices in crime. As late as 1900, the Czech deputies at the Imperial Diet in Vienna had to mount PF 1990 a major fight for Czech to be allowed as a teaching language at Prague University! V novem roce The heritage of Masaryk ve svobodne zemi Then appeared on the stage a statesman who towers above most other figures of the 20th century, Thomas Masaryk se svobodnjnt nilrodem (1850- 1937)-philosopher, professor, deputy, founder and do svobodnych voleb first President of the Czechoslovak Republic, and the'

50 International EIR January 12, 1990 The way ahead Typical is the case of Vice Prime Minister Valtr Komar­ That is probably what President Havel was referring to ek, an economist and member of the Academy of Sciences. in his inaugural speech, .when he said, "We have to discover Some two years ago, Prime Minister Ladislav Adamec, the full truth of our recent history." He pointed out that 40 enough of an opportunist to be a Communist, but enough of years of Communist mismanagement had left industry and a pragmatist to perceive that the economy was entering a the economy, and the environment, in a disastrousstate . But, deep crisis, asked Komarek to regroup the 1968 economists "the worst thing is that we live in a contaminated moral in an Institute of Prevision that would work on a diagnosis environment . . . because we became used to saying some­ of the past decades of economic life, and issue proposals. thing different from what we thought. We became used to The study Komarek and his collaborators delivered was a the totalitarian system and thus helped to perpetuate it." He devastating indictment of Communist rule; it was not pub­ added that the Communists had considered "people as little lished at the time. The proposals were circulated, and inspire more than rivets in a thrashing, smoking machine which had the present government. no obvious purpose." "People, the governmenthad returned This also explains the words of the new finance minister, to you," he paraphrased Masaryk. "I assume that you did not Vaclav Klaus, at the end of December: "We will not fall into propose me for this office so that I too would lie to you. The the trap of the International Monetary Fund, as Poland did." best government in the world, the best Parliament and the Only a small minority in government circles advocates a best President cannot achieve much on their own. Freedom "shock treatment" similar to that prescribed for Poland by and democracy call for the participation and therefore the Harvard monetarist Jeffrey Sachs and his IMF cohorts. responsibilityof us all." For decades, the economy has been looted by the Soviets. Those who lived through 1968 and the hideous years that In 1968, ten crowns were needed to buy one ruble. As a result followed, where any sign of courage or virtue or talent was of the Soviet occupation, the parity was raised to 18: l one a sure ticket to be ostracized, harassed, and persecuted, and year later-"overnight, we had to almost double our exports wherehundreds of thousands lost their jobs, their rights, and to the U.S.S.R.," an economist explained. In the last few their freedom-those people, while euphoric, know that the years , Russia bought 90 billion crowns worth of Czech indus­ way ahead is not going to be simple. In mid-January, the trial goods on loans extended by the Czech Treasury . They Czech government will start negotiations with the Soviets, have never beenreimbursed, and Prague cannot buy anything on the evacuation of the 75,000 Soviet occupation troops. worth anything in the U.S.S .R. The railway system is on the Moscow is prepared to exact a heavy price for any concession brink of disaster; the roads , while better than in other ex­ in this direction. "socialist" countries, need a lot of work; the telecommunica­ At no time during the days I spent there did I see a portrait tions system is outdated and inefficient. The entire sector of of Gorbachov, or did anyone mention his name. In 1986, the residential buildings is in urgent need of huge investment, Russian leader had come to Prague, and the whole country being in long-standing, complete disrepair. There is no acute was ready to welcome him as a liberator. Had he said one shortage of food, but living standards are low: An average word to condemn, or merely regret, the 1968 invasion and worker earns 2,500 crowns per month (l crown= 10 cents, its consequences, the trick would have been done. But Gor­ at the official rate, but 2.5 cents on the more realistic black bachov backed up the old leadership, the evil old men who market rate). And he needs two months of wages to purchase had purged and jailed a whole people. All he did was to kick a poor-quality refrigerator. upstairs the loathed Gustav Husak from secretary general of the Party to the presidency, and replace him with the hated The true Europe secret police thug Milos Jakes. Czechoslovakia was then lost The Civic Forum now in power with Havel and his collab­ for Gorbymania, and for good. orators , has power: The powers of the presidency are vast,

For sure, the secret police still exists. But it has lost including being the commander- in-chief of the Army. The power, since people have lost their fear. It has no one to Communist Party is a reviled relic. Much will depend on the report to, no one who would act. Similarly with the party West's ability to understand that we must help Czechoslova­ functionaries, who are more of an inertial burden than any kia, like we must help Poland and East Germany. For Europe, active force: Once the purges of normalization "freed" the a sovereign and prosperous Czechoslovakia is a necessity, Communist Party of anyone with an ounce of competence, and a decisive power in the middle of the continent, as Masar­ talent, or courage, only the careerists, the opportunists, and yk had seen it. The beauty of Prague, the extraordinary, truly the thugs were left. impressive depth and passion of the national sentiment of Those now in government spent the last 20 years in jail, Czechs and Slovaks, certainly demonstrate how absurd and in lowly menial jobs, in internal exile. They devoted much illegitimate the postwar division of Europe has been, in the of those terrible years to thinking. While they have been bastard continent cut and patched by the arbitrary will of the catapulted into government much faster than their wildest Yalta powers. There is no "Eastern"Europe , there is Europe, dreams would have hinted, they have not arrived unprepared. and it only ends where Great Russia begins.

EIR January 12, 1990 International 51 was very real. Mazur talked of the importance of music in the overcoming of Angst (fear and anxiety) and the develop­ ment of inner courage. He avowed that he and others had 'Ode to Joy' been profoundly changed by that process of mastering fear and seeing the revolution through to a bloodless conclusion. resounds in Europe Mazur spoke, too, of the specificimportance of the Gewand­ haus Orchestra as an institution in Leipzig, an institution that maintains a close relationship to the developments in the city, . Burdman by Mark and which has developed an unusual relationship with the audiences. In het days preceding the New Year and thenew decade, the The broadcast of the interview interspersed Mazur's com­ world public was presentedwith a stark contrast between two ments with film-clips of Leipzig residents holding their can­ diametrically opposed notions of the cultural e�pression of delight vigils. political ideas and values. On the one hand, U.S. invasion forcesin Panama wereblaring satlJIlic rockmusic against the True German reunification embassy of the Church of St. Peter in Panama City. On the Leipzigwas hardly an isolated episode of Beethoven cel­ ottterhand. peopleon the Europeancontinent. from Romania ebrations. In Weimar,on Dec. 31, the Ninth Symphony was to the northern tip of Germany, were commemorating the also played, as it was in many other East German towns and popular uprisings against communist police-state tyranny cities. In West Berlin, the Ninth Symphony was performed with such great music as Beethoven's "Ode to Joy" and Mo­ at the Deutsche Oper on Dec. 29. Jesus L6pez Cobos, general zart's "Te Deum." We reporthere onthat latter, happy �nd. music director of the opera company, said that the Ninth

At S:OOp.m. on Dec . 31, millions ofOermans were given Symphony was "highly symbolic" for what is going on in a magnificentNew Year's present, when German television, Europe right now. According to the Dec. 30-31 Berliner both East and West, broadcast a ljve concert of Beethoven's Morgenpost, L6pez Cobos declared: "There is nothing that Ninth Symphony, performed by the Leipzig Gewandhaus can better express the joy of the developments of the last Orchestra and Chorus, with Kurt Mazur conducting. Not weeks than this music." To which the Morgenpost added its only was the performance so moving that it was impossible own comment: "Beethoven's Ninth Symphony has grown to refrain from weeping with joy, especially during the last beyond simply being a piece of musical art. Today, it is a section's rendering of Schiller's poem "An die Freude" worldwide symbol of cross-border humanity, longing for ("Ode to Joy"), but the event was made even more extraordi­ peace and fraternity. " n!U')'by every viewer's knowledge that Leipzig was the birth­ At midnight on Dec. 31, as the New Year and new decade place of East Germany's peaceful 1989 revolution against were beginning, a recording of Beethoven's Ninth Sympho­ the communist police state, and that Mazur himself had been ny was played on West and East German television, as ac­ one of the key figures in bringing that peaceful revolution companiment to the sight of over 100,000Germans celebrat­ about. His conducting was magnificent, especially as he ing at Berlin's magnificentBrandenburg Gate. "sang along" with the chorus in the concluding choral Also during the previous week, listeners to Radio Mos­ movement. cow's English-language broadcasts might have heard a This televised concert was the third of three traditional voice-overlay from a Radio Nederland broadcast, of the "An performancesof Beethoven 's Ninth Symphony at the Leipzig Die Freude" segments of the Ninth Symphony, followed by

Gewandhaus over the Dec . 29-31 weekend. Priorto that, on the announcer discussing Beethoven's relation to Schiller. the night of Dec. 28, Mazur and the musicians transformed Even if it was not deliberate jamming, this amounted to a wttat is traditionally a dress rehearsal forthe Ninth Sympho­ curious episode of repUblican cultural warfare in Europe. ny,· into a performance of it for the citizens of Leipzig. This During the joyous New Year's celebrations in Prague, was an obvious celebration of Leipzig's role in the October­ Schiller's "Ode to Joy," sung in both German and Czech, November 1989 revolutionary transformations, and also of was heard in Prague's beautiful Wenceslas Square. Czech the. fact that Schiller had written his "Ode to Joy" while students were seen distributing the words in Czech to the slaying in Leipzig. assembled crowd. Also heard at the New Year's celebration, In a televised interview broadcast both before and after was a beautifulCzech Renaissance song, which had beenre­ the Dec. 31 concert, Mazur stressed the importance of Bee­ composed with new, anti-Bolshevik words, sung by over thoven, and Beethoven's Ninth Symphony in particular, in 100,000 Czech citizens gathered to celebrate the demise of his own political thinking, and in having created the moral the communist regime. strength for East Germans to overcome the fear they felt Earlier in the week, at the ceremonyinaugurating Vaclav leading up toand during the famous night of Oct. 9, when the Havel as Czechoslovakia's first non-communist President in threat of a bloodbathunleashed by the communist authorities four decades, Mozart's beautiful "Te Deum" was performed.

S2 International EIR January 12, 1990 Report from Bonn by Rainer Apel

Dirty tricks won't save communism the crisis, was put t,mder attack by the The SED party is desperately trying to split the East German black propaganda apparatus. When banners against new social­ political opposition movement. ist experiments and for German unity began to dominate the big public pro­ test rallies, the SED-controlled media East Germany is entering a severe like state security matters. The round­ churned out · a propaganda equation economic and political crisis, which is table operates in a gray zone, and vari­ reading like this: Opposition to the so­ not only the heritage of the old regime ous opposition figures intend to walk cialist system is a returnto anti-Sovi­ that was toppled in October, but also out, especially over the hot issue of etism, to the belief-structure of the a result of the foul tactics of the new "what is happening with the Stasi?" Nazis, and this means the rise of a new SED-led government of Hans Mo­ The infamous Stasi, the political po­ fascism and the threat of a new war. drow. He refused to let the opposition lice-state apparatus with 20,000 mem­ When this didn't help to contain parties enter the government, prefer­ bers and more than 100,000 agents the mass sentiment for reunification, ring to rely on the same discredited and informants on its payroll, Was not the third black propaganda campaign combination of the SED Communists dissolved, but renamed and re­ was launched over New Year's on the and four licensed "bloc parties" that grouped, and not even disarmed. The phony issue of "threats of right-wing have ruined the country in the past 40 Stasrs extensive file system on dissi­ extremism and of neo-fascism." years. dents, data on the network of tens of Hardly had this "threat" been discov­ Waming strikes in some of the thousands of covert iQformants in all ered, than a series .of anonymous bigger industrial combines, like the layers of the society (including oppo­ swastikas were painted on Soviet prestigious car-producing IFA com­ sition groups, naturally), and data on army stations arid anti-Semitic slo­ plex in Zwickau, and the mass exodus Stasi cooperation with the Russian gans on shop windows appeared. Cap­ of workers from the SED party are KGB , were hustled to secret locations italizing on the pause in public mass clear signs that the regime has lost to be safe from opposition insistence opposition rallies between Christmas confidenceamong the labor base. The on their release to the public. and Jan . 8, the SED-controlled media FDGB, the discredited SED-run labor The media are under firm SED stepped up the propaganda drive. The front, lost 10% of its members in the majority control , and have launched a scare campaign culminated on Jan. 3 past two months. Things are working dirty tricks campaign to split the oppo­ with an SED-staged mass rally of against the SED-especially in view sition movement and discredit its 200,000party members and followers of the May 6 elections for seats in the leaders. First, the SED media concen­ at the Red Army monument in Berlin­ parliament, the Volkskammer. trated on propagating a "new social­ Treptow , ranting loudly against "the But for the time being, the SED ism," or, as they called it, a "return rise of a new fascism." hopes to defend and consolidate its to the pure, original principles of the The outcome of this dirty . tricks power positions, primarily in the se­ concept of socialism." They declared operation may prove short-lived and curity sector and the media, counting this to be the platform of the new Mo­ counterproductive, however. Most on splits in the opposition. The SED drow government, insinuating that East Germans feel reminded of the is playing for time, as is shown by the rather than reuniting with West Ger­ methods employed by the hated Hon­ safety-valve function of the "round­ many, East Germany should remain ecker regime that fell in October. table talks" it held with seven opposi­ an "independent, sovereign state." After the SED's staged mass rally in tion groups since early December. The crimes of the past 44 years of Berlin, spokesmen of various opposi­ The weekly sessions have so far pro­ Communist rulewere blamed on a few tion groups denounced the "smear duced a lot of talk, no progress on the toppled SED party leaders, like Erich campaign, the sole aim of which is to economic reform , no passage of an Honecker, and socialism w�s declared put false blame on tne opposition and election law, and no legalization of a "desirable concept of a new and bet­ establish the SED as the party oflaw the opposition. ter society which must not been given and order." Opposition leaders stated Besides, the roundtable's deci­ up because of a few grave flaws." that from Jan. 8 on, the huge Monday sions are not binding. Roundtable Next, the desire .ofthe majority, which mass rallies w.ould be resumed, in or­ members are not even informed by the doesn't buy socialism (old or "new") der to increase the pressure on the government on key aspects of policy anymore, for non-socialist solutions to regime.

Em January 12, 1990 lntemationar 53 AndeanReport by Jose Restrepo

Bush threatens Colombia blockade is theequivalent of "placing our sover­ With Panama's blood fresh on his hands, Bush is now trying his eignty in quarantine." While the �ush administration big-stick tactics on another [bero-American ally . claims it would impose the Colombian blockade in the name of fighting drugs, it is clear that on this subject, the U.S. has little to teach Colombi­ ans, who have been martyred by the T he Bush administration is making cooperation," the statement read. But hundreds in ' a bloody war with the plans to block all trade coming from the Bush administration had appar­ drug cartels� President Bush's own Colombia, with the excuse of fighting ently decided to act without respect badly stained record . includes agree­ the drug traffic-the same excuse he for such bothersome principles. ments with , the cocaine-trafficking used to justify a genocidal war against "We have discussed absolutely Medellin Cartelto financeand armthe Panama. A Pentagon official an­ nothing with the United States gov­ Nicaraguan Contras,. and other sordid nounced Dec. 27 that the operation is ernment and have not agreed to share details likely to come out in the trial intended to "make every kind of drug our own air and physical space with of Panama's Gen. Manuel Noriega. shipment from Colombia, be it by air other countries," said Yesid Castano, Lyndon LaRouche, the Bush re­ or by sea, impossible." Despite prom­ head of the National Aeronautics gime's most tprominent political pris­ ises not to "shoot people out of the Agency in Colombia. Castano added oner, commented. on the planned U.S. air," such a blockade would clearly that Colombia was planning to in­ blockade of Colombia that the action intimidate even the most honest Co­ crease its own radar network, precise­ has nothing to do with fighting a war lombian exporter. ly to achieve sovereign control over on drugs. Rather, he said, it has every­ The military operation, according air traffic flows, in fulfillment of its thing to do with the "Andropov Doc­ to the same official, would include an internationalrespo nsibilities. trine" for a superpower condominium. aircraft carrier battle group and Air Some analysts have suggested that According to that doctrine, the United Force squadron, and would cover Co­ the threat of aU. S. blockade is in re­ States · will take "a free hand in the lombia's Caribbean and, possibly, Pa­ taliation for Foreign Minister Julio Western Hemisphere, on condition of cific coasts. The battle group could Londono's denunciation of the Pana­ an adequate · reduction of forces, in­ include as many as 90 aircraft, includ­ ma invasion as "unacceptable," .and cluding, possibly, the withdrawal of ing fighters, bombers, and reconnai­ his demand that American troops be the Sixth Fleet from the Mediterra­ sance planes, and several ships and immediately withdrawn. nean, to reduce the threat to the Soviet submarines. Immediately after Londono's heartland." LaRouche added that "if. In a communique issued Dec.28, statement, the U.S. embassy in Bogo­ the Panama operationis part of this, as the Colombian government respond­ ta pressed the Colombian government it appears to be, then look for some­ ed to the blockade announcement, to retract the foreign minister's con­ thing following the staging of a naval saying that "the United States govern­ demnation. When Londono refused, force off Colombia, as leaning toward ment has not consulted with Colombi­ an intimidated President Virgilio Bar­ action against Cuba or Nicaragua. " an authorities about this particular co sent him on "vacation" and issued Bush will do everything he can to subject. The national governmenthas a revised statement expressing '�deep impose his blockade against Colom­ not received any proposals or requests concern"for the invasion of a country bia, and the current plan is . to ram on the subject of operations against on Colombia's own border .. through such a scenario at the upcom­ drug trafficking in international More than one Colombian jour­ ing drug summit meeting in Cartage­ waters." nalist has drawn the conclusion from na, . where Bush is scheduled to dis­ The Colombian governmentmade the U.S. blockade threat, that Wash­ cuss "j oint" anti-drug actions with the it quite clear that the U.S. plan was ington is rattling sabers again. Wrote drug-producer nations of the Andean unilateral . "The policy of the national one columnist, "If the U.S. can invade region. If Bush's performance in Pan­ government in regard to multilateral Panama [in the name of fighting ama is any indication, a rejection of or bilateral actions against the drug drugs], why not Peru or Colombia?" his blockade plan by' the Colombian trade is premised on the principle of Another wrote that such a blockade by governmentis not likely to stand in the agreement as the basis of international the "forces of war of another country" way of his ''Teddy Roosevelt" image.

54 International EIR January 12, 1990 Reportfro m Rio by Lorenzo Carrasco Bazua

Fascism through chaos cided to launch a strategy of financial The Anglo-American financial elites want to crush the national strangulation of the nations of Ibero­ America, to force them to impose sui­ institutions of debtor nations through chaos. cidal austerity measures. That strategy, which is followed to this day by the leading creditor banks, was decided upon in a private With the headline "Hyperinflate, upheaval, worse than a revolution, by meeting of the American Enterprise Brazil! It's the only way to get a hor­ those who have nothing, [who will go Institute held in Vail, Colorado in Au­ rendous government off Brazilians' out into] the streets to survive . . . as­ gust 1983. At that meeting, bankers backs," the London Economist maga­ saults on supermarkets, stores, hous­ led by Kissinger determined that a to­ zine revealed the intentjons of the An­ es. . . .. It is useless to say that infla­ tal suspension of new credits would glo-American financial oligarchy to tion can be ended without recession, force the debtor countries to open their use hyperinflation and resulting eco­ without unemployment, without belt­ economies up to direct foreign invest­ nomic and social chaos to impose a tightening. Drastic, overwhelming, ments, while putting even their most fascist shock program on this country . ferocious measures will be nec­ strategic state companies on the sale In its mid-November 1989 issue, essary." block. In statements to EIR , a spokes­ the magazine wrote: "Argentina, and Former minister Roberto Camp­ man for Rockefeller's Council of the previouslyBolivia , are a lesson for all os, who bears much of the responsibil­ Americas attending the Vail meeting of Latin America: Only hyperinfla­ ity for the imposition of the unjust eco­ declared: "Somehow, in Latin tionary shock can produce the neces­ nomic and financial model which has America, the concept of bankruptcy sary conditions for a sensible econo­ brought Brazil to its current calami­ has to be introduced into the public my." The Economist continues: "Our tous state, also believes that social sector. There must be a change in the electoral wish for the Brazilians is a chaos must be used to dissolve the state laws of Argentina, Brazil, Mexi­ sudden take-off of hyperinflation, to state, beginning with the dismantling co, and other countries. First, no state crush the power of the politicians who of the state sector companies. Camp­ subsidies to public companies .... have ruled so badly." os, who does not hide his admiration Then, either they are allowed to go With Fernando CoHor de Mello for the Thatcherite model , told the bankrupt, or, if they need new money, confirmed as the next President of London Financial Times on Dec. 7 open them up to privatefore ign invest­ Brazil, Anglo-American bankers are that to the extent the crisis takes on ment. This goes for a company like now moving to impose a draconian "apocalyptic dimensions," he is con­ Petrobras in Brazil as well." austerity program along the lines of fident that President-elect Fernando The spokesman continued: "I what President Carlos Menem has at­ CoHor de Melo will impose a strictly don't feel confident about Brazil's tempted to impose in Argentina. Ac­ liberal program. Campos elaborated ability, for example, to survive its cur­ cording to the Economist, Menem that program in his Dec. 10 weekly rent domestic situation. But there is no "began a program of privatizations column appearing in various Brazilian substitute for the austerity process. It that goes far beyond the dreams of any newspapers, in which he called for do­ is very true that it causes social chaos, Thatcherite, while recruiting his eco­ ing away with "the imbecility of ex­ but mass protests can be used to pro­ nomic ministers from the largest mul­ cluding privatization and conversion mote changes. There will be tremen­ tinational of Latin America." of the debt of 'supposedly' strategic dous public pressure, due to unem­ In Brazil, the viewpoint of the sectors, like oil, electrical energy, or ployment, on these governments to Economist has been best expressed by telecommunications. " change their laws to get access to new two of the most important local repre­ Jaguaribe and Campos come out credit. We have to use the austerity and sentatives of the oligarchy, Helio Jag­ of the same group and the same eco­ social chaos to crack the social institu­ uaribe and Roberto Campos. nomic thinking, but sow their ideas in tions of the country, to change the On Nov. 15, Jaguaribe, a super­ different political camps. The idea of laws." malthusian sociologist and Brazil's creating political chaos to impose fas­ So the catastrophic predictions of only official member of the Club of cist policies dates back at least to such "intellectuals" as Helio Jaguar­ Rome, told the magazine Veja that 1983, when the circles of former U . S. ibe and Roberto Campos are hardly "The predictions are ·of a great mass Secretary of State Henry Kissinger de- original.

ElK January 12, 1990 International 55 International Intelligence

d�ree of conceptual confusion in We stern tably be replaced with We stern-styledemoc­ Czechoslovakia's Ha vel diplomacy in light of the transformations," racies. "The same is inevitable in the Soviet he wrote . Union, wh ich is likely to split along ethnic hails German unification "As a matter offact, Baker's view insin­ lines in the long run," Dj ilas said. "It will uates sort of a democratic revival of the disintegrate like the British Common­ Czechoslovakia's new President, Vaclav Brezhnev Doctrine, justifying an interven­ wealth." Havel, said on Jan. 2 during a visit to Berlin, tion of the Soviet Army as the armed instru­ He predicted similar upheavals in China that "Europe need have no fear of a demo­ ment of the Moscow policy of control over and other communist countries. "In the long cratic Germany." a socialist country of Europe that is allied run China will have to follow this path, but Havel , the former opposition leader who with the Soviet Union. Signaling U.S. sup­ not too soon," he said. "China is more back­ was in jail in 1989 for his opposition to the port, [Baker's statement] provides such a ward than most people think, but it will have Communist regime, made an unscheduled military intervention with international le­ to chang�." stop at the Berlin Wall and the Brandenburg gitimacy." Dj ilaS said Stalinist Albania, a holdout Gate during the firstleg of his one-day visit The idea of a new U.S. version of the against the reforms sweeping the Commu­ to East and We st Germany. "Brezhnev Doctrine" was also featured in a nist world, would be next in line. "It is cer­ "I was amazed the Wall was still stand­ Dec. 21 editorial in Scotland's leading daily, tainly the next and it's just a matter of time ing," he said, according to the Reuters wire The Scotsman, on the subject of the U.S. before the winds of change sweep across it," service. "Manfred Gerlach [the acting East invasion of Panama. "The implication of he said. German head of state] told me work would Mr. Bush's decision is a returnto the Brezh­ soon start to tear it down. I told him that if nev Doctrine in which one or two dominant he had any problems, we could a send some states decide which governmentsare accept­ Aquino revamps cabinet independent Czechoslovak workers to help able to them and which ones are not, and free of charge," Havel said, to loud ap­ then remove the latter. That is not a sound after coup attempt plause. basis for democracy," the paper wrote. By pointedly avoiding Moscow as his Philippines President Corazon Aquino an­ firstdestination abroad as head of state , Ha­ nounced sweeping changes in her govern­ vel made a clean break with the practice of Yugoslavia's Dj ilas ment on Dec . 31, creating an "action team" the Communists who ruled Czechoslovakia to lead the Philippines, in the aftermath of for more than 40 years . "We have come to sees end of communism the Dec. 1-7 coup attempt. Aquino replaced Germany because we want to make an im­ her financ;e secretary and seven other minis­ portant contribution to a united Europe," he Yugoslavia's leading dissident, Milovan ters, firedher intelligence chief, and created said. Dj ilas, said Dec. 31 that the upheavals in a new system of executive coordinators. EasternEurope marked the beginning of the In her third major reshuffle since the end of communism in the Soviet Union and U.S. State Department swept her into power German defense analyst its formersatellite states. "This is the end of in 1986, Aquino announced that her cabinet the Marxist-Leninist utopia," he said, in an would be expanded by 3 to 25 . hits condominium policy interview with Reuters. She retained Foreign Secretary Raul Once the closest lieutenant of Yugosla­ Manglapus, who will meet in January with The Bush administration's condominium via's late leader Josip Broz Tito, Djilas was U.S. negotiators on the future of American agreements with the Soviet Union came un­ fired in 1954 for his liberal views and be­ military bases in the Philippines, and De­ der heavy attack in an analysis by a leading came one of the communist world's leading fense Secretary Fidel Ramos, who helped German defense analyst published in the dissidents. put down the coup attempt. daily Die Welt on Jan. 2. Former Assistant "What has happened in Eastern Europe A spokesman for Aquino said the re­ Defense Secretary Lothar Ruehl criticized is not only a revolution, but something that vamp would bring new blood to the cabinet recent endorsements of Soviet military in­ will change the course of history every­ and help tackle some of the issues underly­ tervention in Romania, made by U.S. Secre­ where and the world must adjust to it," he ing the coup attempt. Army rebels had ac­ tary of State James Baker, and of interna­ said. "Revolution is devilish, no one knows cused Aquino's government-an enforcer tional military intervention there, made by where it leads, but in Eastern Europe we regime for the International Monetary French Foreign Minister Roland Dumas. have witnessed a democratic revolution un­ Fund--{)f failing to deliver basic services, Such statements are symptomatic of seen in history." tolerating corruption, being indecisive, and "the beginning disintegration of the political Dj ilas said the deposed Communist failing to provide leadership. East-West structures in Europe , and the high leaderships in Eastern Europe would inevi- Aquino named Planning Secretary Jesus

56 International EIR January 12, 1990 Briefly

• HERMANN OBERTH, the German space science pioneer, died in Nuremberg, West Germany on Dec . 29, at the age of 95 . Oberth developed the theoretical basis and Estanislao to take over as finance minister cabinet meeting over a clash Dec . 30 be­ engineering designs for the space and from Vicente Jayme, who becomes presi­ tween police and at least 15,000 internation­ rocket programs of this century. He dential coordinator for financial and eco­ al participants in a human peace chain was scientificadviser to the 1929 film The Woman on the Moon, nomic affairs . Jose Cuisia, head of the gov­ around the wal ls of Jerusalem's Old City. which in­ ernment's social security system and a Informed sources told EIR that the inci­ spired the future leaders of the Apollo member of its foreign debt negotiating pan­ dent shows that contacts between Israeli of­ program. el, replaces Jose Fernandez as central bank ficials and the PLO are more intense than BEllING governor. ever before , and that Shamir's move to cut • says it -has "disci­ The head of her National Intelligence them off will not succeed. plined" 350,000 people and arrested Coordinating Agency, Gen. Rodolfo Canie­ more than 2,500 of them, in a nation­ so, lost his job afterpublicly predicting that wide campaign against the "six evils" People's 60-70% of the Army would remain neutral China's Jiang: Crush of corruption. The official Daily in the next coup attempt. He will be replaced said that most of those picked by former Army chief Maj . Gen. Mariano 'reactionaries' abroad up in the month-long campaign Adalem, who will also serve as Aquino's against corruption were fined or oth­ Chinese Communist Party chief Jiang Zem­ military affairs adviser, instead of Gen. Jose erwise penalized by police. But in urged China's "invincible" ruling party to Magno , who was also dropped. 2,200 were sent to labor camps. smash "reactionary" forces abroad, and to ensure the Marxist credentials of China's • MARIN CEAUSESCU, the Israeli coalition in leaders. The officialPeople 's Daily Dec. 30 brother of the late Romanian dictator devoted half its front page to a speech by Nicolae Ceausescu and Romanian crisis over PLO talks Jiang , declaring that revolutionary zeal was trade attache to Austria, was found needed to take China through an "extremely hanged in a Vienna cellar at the end of The collapse of the Israeli governing coali­ critical time." December. The Austrian government tion was narrowly averted on Jan . 2, when "The authority of leadership in the party announced that it suspects he was a Prime Minister Yitzakh Shamir agreed to and the country must be held in the hands of key spy . He is also reputed to have withdraw his decision to fire Science Minis­ people who are loyal to Marxism," read a been involved in the Eastern Europe­ ter Ezer We izman. Shamir fired We izman banner headline in the newspaper, over Jian­ an side of the Reagan-Bush adminis­ on Dec. 31, accusing him of having private g's speech. tration's Iran-Contra operations. meetings with the Palestine Liberation Or­ Jiang said that from now on, people ganization; such contacts are forbidden by must be employed, elected, and trained with • F. SCHILLER'S life will be the Israeli law. the prime aim of promoting revolutionary subject of a new TV film, prepared We izman, a member of the Labor Party, ardor or Marxism. Afterthat, they can learn jointly by East and West German had helped negotiate Israel's historic peace enough science and culture to be useful to filmmakers. The production of the with Egypt and has repeatedly urged Israel China's modernization. This is a flat rever­ two-part video, filmed at original to drop its refusal to talk to the PLO. sal of the anti-Mao line earlier pushed by sites of the great poet's life like Wei­ The Labor Party threatened to end its Deng Xiaoping, under his slogan, "It mar, Jena, and Marbach, is expected participation in the unity government, un­ doesn't matter whether the cat is black or to begin in the spring. less We izman were reinstated. A compro­ white, as long as it can catch mice." mise was reached under which We izman has "The party must again show forth our • NAZI EUGENICS are being re­ been allowed back into the government, but invincible strength in smashing internation­ vived in Communist China. The pro­ he will be excluded from the inner cabinet. al reactionary forces," said Jiang. "Our par­ vincial government of Gansu is ag­ We izman revealed that Vice Premier ty has plentiful experience in fighting impe­ gressively enforcing a new law re­ Shimon Peres had also been involved in the rialists and all kinds of opportunists. . . . quiring the sterilization of people de­ discussions with the PLO , which led one of Only leaders who have unconditional faith fined as mentally retarded. In 1989, the right-wing opposition parties to call for in Marxism and are willing to base them­ more than 100 people in the poverty­ Peres's suspension from the government. selves on that can lead ....Foreign influ­ stricken northwestern province were We izman said he told PLO representatives, ences in China have resulted in corruption sterilized under the law, which re­ during meetings in June, to accept a five­ and spiritual disintegration. What is neces­ quires people with significant mental point U.S. program for Israeli-Palestinian sary now is the unbeatable strength of the retardation to be sterilized if they are peace. Communist Party to crush the assaults of married or intend to marry . The crisis erupted at the end of a stormy international reaction."

EIR January 12, 1990 International 57 �ITillInvestigation

EastGer mandirty -arms trail leads to Iran-Contra by William Engdahl

One consequence of the collapse ofthe East German Honeck­ members of the hated East German secret police-Stasi or er regime last October, was the capture of documents in Ministerium fUr Staatssicherheit as it was officially known the port city of Rostock which holds a potential to open until December, were caught in Rostock attempting to smug­ devastating new material relevant to the upcoming trial of gle sensitive shipping files of the East Berlin and Rostock­ former U.S. National Security Adviser Adm. John Poindext­ based IMES state "export-import" firm to Cuba. The day er, as well as others in the Reagan-Bush Iran-Contra illegal earlier they had succeeded in getting one shipment off to arms affair including, possibly, the President himself, ac­ "safe" hands in Ceausescu's Romania. cording to some knowledgeable European assessments. IMES GmbH was a key part of an international network One fascinating trail leading from the East German Baltic over which Schalck had presided since 1967 . A vast web of port of Rostock goes directly into Panama and, if fully pur­ secret Swiss, West German, Liechtenstein and other "letter­ sued, could shed light on the obsessive pursuit by the Bush box" firmswere used by the EastGerman Communist regime administration of Gen. Manuel Noriega since the latter seized and the Stasi, overseen by Schalck under the Department of a Danish arms ship in June 1986, some five months before Commercial Coordination of the Ministry of Foreign Trade, the Iran-Contra scandal forced the resignation of Lt. Col. or CoCo for short. According to informed West German Oliver North and Admiral Poindexter. reports, Schalck and his CoCo reported directly to Honecker In early December 1989, angry East German citizens and the Central Committee of the East German Communist including members of the opposition New Forum together party (SED). As indication of approval for Big Alex's servic­ with television cameras went to a suspected, highly guarded es, Honecker gave Schalck the 1982 Order of Karl Marx, site and uncovered a huge secret arms and ammunition depot followed in 1984 by the Great Star of Peoples' Friendship. in Kavelstorf outside the port of Rostock under the control How does the Schalck affair throw light on Irangate? of IMES GmbH. What were the ties in the bizarre and lucrative communist Hours later, the man alleged to have been the mastermind arms traffic with the friends of Oliver North and other West­ of a multibillion-dollar illegal arms and probable narcotics ernersin the notorious Iran arms trafficto Khomeini's regime smuggling operation went underground. Alexander Schalck­ during the 1980s? The following is a partial report on an Golodkowski, a 220-pound, 57-year-old man nicknamed international investigation which EIR has conducted for more "Big Alex," had controlled East German foreign trade as than four years. Some of the conclusions are presented here. Honecker's deputy foreign trade minister. On Dec. 6, West German authorities revealed that a panicked Schalck had IMES and the 'northern route' turned himself over to West Berlin police requesting to be IMES Import-Export GmbH, housed in the International placed in protective custody. A warrant for his arrest on Trade Center on Friedrichstrasse in East Berlin, was the im­ charges of embezzlement and illegal arms smuggling had port-export firm which ran a lion's share of East German been issued the previous day in East Germany after senior trade with Western firms. As such, it handled an estimated

58 Investigation EIR January 12, 1990 A Swedish Customs depiction of one of the complex arms-smuggling routes using IMES of East Germany (labeled "Ost Ty skland" on the map).

50% of all hard currency earnings of the state. With such a Among the thousands of pages of documents seized from critical function in the Honecker dictatorship, it was at the Schmitz's Scandinavian Commodities AB , authorities found same time an integral part of East German intelligence and ample documentation linking Schalck's mysterious IMES foreign operations. GmbH to this illegal Western NATO-based armsand explo­ IMES GmbH first came to light when documents were sives cartel. seized by Swedish Customs officialsat the Malmo officesof The creation of IMES GmbH itself is shrouded in mys­ Swedish businessman Karl-Erik Schmitz on Sept. 29, 1985, tery . According to a confidential report from the Swedish a year before the world began to learnof Col. Oliver North's Embassy in Berlin dated February 1986, IMES GmbH was illegal Iran-Contra dealings. This raid followed an April 17, in existence since before the imposition of the communist 1985 Swedish police raid on the Karlskrona, Sweden arms dictatorship at the end of the war-a reason why the East and explosives maker, Bofors-Nobel Industries. From those German firmsays it uses a West German corporation designa­ raids, authorities seized thousands of pages of vital docu­ tion, "GmbH" rather than the normal East German "AHB" ments on vast, coordinated international smuggling routes (Aussenhandelsbetrieb). This would indicate that IMES had employed by what was known in the trade as the "explosives been involved with certain "Western" trading networks for cartel," an elite group of Western companies including Bo,. some time. In fact, the existence of a secret international fors-Nobel, and related firms in West Germany, the United weapons cartel incorporating entities in communist countries States, Belgium, Italy, France, the Netherlands, and Great as well as NATO lands has been in place for at least decades, Britain. according to statements by Schmitz prior to his recent Swed­ As a result of the toppling of the Honecker regime in East ish trial for illegal weapons and war materiel shipping to Iran. Germany and the flight of Schalck to West Berlin, Swedish "Everyone has kept this secret until the Swedish Customs Prosecutor Stig Age asked the Swedish Foreign Ministry to went like an elephant in a porcelain shop and destroyed it," aid in bringing Schalck to testify this spring in the Bofors Schmitz stated to the press in November 1987, the same time appeal trial. While the outcome at this point is not at all clear, the explosive Iran-Contra revelations hit the White House. including possible extradition of Scha1ck to East Germany to Swedish official court documents confirm use of IMES face trial, the potential of public disclosure by Scha1ck could GmbH by such Swedish arms firms as Bofors-Nobel since at embarrass more people than deposed East German officials. least 1981. At that time, in spring 1981, AB Bofors estab­ More than one Western governmentis believed to be alarmed lished business contact with a Finnish firm, Sevico Oy in at the prospect of his telling all he knows about illegal arms Aabo, to handle transactions in a complex triangular arrange­ and drugs dealings in recent years involving his IMES ment including IMES GmbH of East' Germany. A Swedish GmbH. Bofors-Nobel man, Thorbjorn Evardsen, was installed in

EIR January 12, 1990 Investigation 59 ..... So�I"Q Oy .holll."y.".tu )t A , ..n . AfIo.It"" flrtM I'�. Sf" - 20�lO , u r "u 52 ::�',�;" R... cho�·N I.I. . n, 1-'" ArI<.\u�\ m.' , 0.. ,...0 , .•..•• KO InternatlOflOle 5pedlHon h,po\'t-hporl 01'01",11__ ",, 11 ...... 11'1£$ GoobH II'\ " � 1 o.utrana �::�i';';':O��.... lO86 8-r11n , .... '.,81 " dio ,;,��' .. :. ,...... o ttU1t3 � r[h,dtl"hJ;traot, 1HZ .. lJk�., ...... �·.�· �.dq r "'f 'two. ,eo;.w.,...... p� ' , , 'Irma _.- =��=.=--c... �·t...... ,..� , ••• ..__ froc:htr ... 1 Creruto./WoofGuton. -, . rorot durch ".rk'ufer wrlic:"ut, piG tIy 6<...... "11 •eYIc:o ,.,...... - ., IrIC'Ohl'M 1951 ...�&C<> \01 "'''''tI"' �' :I61 :��:,�G�,.:� "",ItU,n,\ :l('I(1(l(1(1 louu. .. 'l'eol � tll .)2 =�';����!��&=::�6) "'nlO,.n.-tlO e �::;!::.::.:.c�i,�j,.".I.,.,.,.�h LkIl 52 ".,... . ""' .. •.• ...;. letw 811tt 21'woktl _ _ A 00.....,..' '8 -1 ..., ...••. , M' .. • ...· Crer-nhor Clllon ' fUnt •• ;'0'. ,·, .."., ,,,,, .,.. ,.• .�. J � E��\·' , ' =t�:k::::'�':���1�' , .... ••< ....:� � 101" .,. ;:; :::•• : •• • ...... ·100.... EL --- rne 'IS SA - ;;rhane SA-EL ... I}Io :>W\lI,��r, <1··� ����"��,�t�. '0" 11"0U�l�60

�]I:::,�·�I , E:?�:!ifo"". Ao>d. .,,,,� US T�n Induotr.lectl�tdkdle" In au.Htlt /C a" o{lo ber.it. gelTlllO Vwrtr.9 "'�"OII7SO/l'P/OS geliefcrt llrod In 6en teehnhe Lilrorbedl�n R� r.ga.rd • CO. A I S il-n ru o.<). Vlrtr8!l llculnberl. 27,15. ... .518.250 •• 1"' ?' IIII'I "'_nI'I/I·�S ��:,t:�n::f.�E.,� �I�'O 'OOIl1C • WII�rung-sf.Huro 2.'."" • (hcnb;ohn-l\u9lJ"ah.rradltbr!lr. f SOo-'" ��,., any ApS Comp b"""""'Ulch geilte&pllt _",leend ::-1�'��1�:g!:���:�\ S.A. Shipping OrWf'4l'" "�1 AII-<...... 3� )�O ��=·;':",c . g,K:: '"klilt. 2 r..:" t 80<0.' �I�' _ _ .. =r-�!��:;::::��.:.�d 0h9� ....Utilt .. ��,::t,;�S�.T{-:-311" M • Q orun"ol 2.'osch ...n�.n ... ,···� Union link of Fimllltld, T...... Allr.. . t... ' Modelle, ApS ... lkl.' .."',...... __ ...... R." :::��IE,.;a�1"", �" ...s...... " "" v"'�I.'" .""•• ". w ... � � ... .. �, .. O"' 21�'.l'r'u� �.''''''''O .llO ...... ::::!�:.:.'" c · _ , . ... ,"., ,.. " '�.,,, �;:.��;��,� �I'''''O loonoe �C:�!.."'Pr'''Q'''''''<'' .....� .. �=:;:e'gpeo.' '''�1 �;�t���...B,:,':.� . OIrtIIt\OI'I'·, ,. ·� c... �··t""'h.�.o.uIK� ...... ,10" I Qrvft...... " �'����:.!'�;.r1.� """""'1 �::::;�.:·I� 000 ...... y •• ...,..,.." ",e .... y IP· s ,.ro!e'''''n ... ,tI..... tI. · � h,..,,·. . ·1 ... =�::.� :.�3e�b O()!) S.A. Teknlk ApS AnI" '''''"' ,� OI(I600 l'..... ���o;;e�:, C7 '''''0'.• 1011 3010 TO'n. u�e8 ..\e. ,," �"r;!.... 7.DOH"''''''\I Left to right: A Danish commercial directory listing of Tom Parlow and Svenda Andersen, 1011 01 UDO" !��:�."."�'!'• . , ... . S.A. Shipping,' an export document fr om Bofo rs fo r a 1984 explosives shipment to IMES GmbH,'and a bill fr om 1MES GmbH to the Bofo rs company in Finland, Sevico Oy .

Sevico in Aabo to run the arrangement, according to seized curity Council documents, the covert group run out of the Finnish and Swedish documents. White House by Colonel North, Poindexter, and others sent A further strand in the deliberately byzantine web in­ their representatives, Albert "Abe" Hakim and former CIA volved an Austrian firm, Dynamit Nobel Wien GmbH in officialTom Clines, to Copenhagen where after three days of Vienna. A typical Bofors illegal explosives deal would re­ negotiations, they set up anothercomplica ted web of dummy label military gunpowder destined for Iran, forbidden under companies and acquired a ship, the Erria, which was to make a Swedish law which bans export to countries at war, as numerous deliveries of arms · to Iran and Central America "civilian" explosives or "industrial chemicals." It would be until the Iran-Contra scandal abruptly brought it to a halt that exported to Austria, for instance, where it would be directly November. On April 28 the Danish Erria was sold to the re-exported to Furstenberg on the East German border. There dummy corporation, Dolmy Business Inc. of Panama, which it would be shipped to the IMES depot by East German was identified by the Tower Commission as owned by the special shipping networks. From that point, for a healthy Compagnie de Services Fiduciaires (CSF) of old Robert Ves­ commission, the East Germans would re-label and send the co business associate Willard Zucker. Swedish goods on to Iran. Dolmy immediately subleased the Erria to Udall Re­ What clearly emerges from study of the seized Swedish search Corp., aU.S. National Security Council-linked cover documents is that business between Westernexplosives sup­ firm which also rebuilt an airstrip in Costa Rica for the Nica­ pliers such as Bofors and East Germany's IMES GmbH were raguan Contras. It was part of what North, Gen. Richard a common affair for some time. As Schmitz told this writer Secord, and the CIA's Ted Shackley jokingly called "Project in an interview in April 1989 from his office in Fribourg, Democracy." The world media later dubbed it the "Iran­ Switzerland, "This is a network. You have what are called Contra" affair. 'red' countries and what are called 'green' countries. If you The Erria was under the charter of another "letterbox" are forbidden by law to export to a 'red' country, it is well­ company, S.A. Chartering of Copenhagen, whose principal established that you simply go to a 'green' or legal country person was an equally mysterious Norwegian shipper and to export. They then re-ship the material to the 'red' country." longtime friend of former CIA covert operations man Clines, named Tom Parlow. Parlow. had moved from Norway to The strange affair of the 'Pia Vesta' Copenhagen earlier that year to help his friend Clines in the IMES GmbH again turns up in a mysterious case involv­ secret shipping of weapons t� Iran. Another briefcase firm ing a Danish-built "coaster" ship named the Pia Vesta . On of Parlow's was also in full service at the same time, S.A. April 28, 1986, according to declassified U.S. National Se- Shipping Company SpA of Copenhagen, together with a

60 Investigation EIR January 12, 1990 1988 • • . le oiiktion 9 • Tind l2.... april POLI'l'IUK Danish shipper Svend Andersen. Some arms shipments were sent via Parlow's S.A. Shipping for Clines, Secord , and friends. Others went via Parlow's S.A. Chartering. On May 6, a week afterCl ines and Hakim were in Copen­ hagen, another ship, the Pia Vesta, like the Erria a "coaster" vessel ideal for dangerous weapons cargoes, left the East German port of Rostock where it had been filled with a ship­ ment including 32 military trucks, 1,500 Soviet AK-47 as­ sault rifles, and 1,440 RPG rockets. A spokesman for the Danish Seamen's Union told press in December after the first IMES revelations around Schalck-Golodkowski, that his group would press for a fu ll worldwide investigation into the Pia Vesta affair. "This will lead directly to the door of George Bush," insisted the spokesman. "Both the Pia Vesta and the Erria were run at that time by the same people working for Oliver North and company, namely Tom Parlow ." In the Pia Vesta case, the ship leftRostock with "end user certificates" for its cargo which falsely labeled it "specialized .. trucks and spare parts." IMES wrote that the cargo was head­ · , ed for Peru . The ship's cargo was ordered by a Uruguayan Viibencoaster. "letterbox" company, Marnix, on behalf of a Geneva arms ,ii). for 1,45sauk Intion trade dummy company, Star Production, whose principal solgtQueen Shipping k0bte skibet po. tvang .k� ..... "boss" has been identifiedas George Starkmann. In a March en amen­ om, hyt\d 4er � AfMntchen Jenild forbinrl�h.ti med d klu"I51te ef'tA!'nltuincstjtnnu coaatdcn. CIA. 17, 1986 memo from Tom Clines to Ollie North, Clines eoas\tl... o Er .. ;" der var �---... j deD ameri- lnvoheret Erria vnr luaCtit;l involve­ identifiesSt arkmann (a.k.a. Stockman) and his Star Produc­ keDelt. ,,'Mo_bodal e, rei i d en "meTiho,lre Iran. b1ev l ,ir i Kontr .olrt vlbcnskandal I To­ pl •. (A�" tion, as having been among those used in General Secord's tor 1,4.5 milL k...o r... wer- kommi"ionens rapport TIL SPOR­ \vanc·.uktioD.. . om dt!n amcrikonskc ylbe n- ANEMC' Auktionen blev boldt pi hllndel m� Trfln, k.bte Oli­ "operation," and "involved in the procurement and transpor­ ..Vindlakker r be,�ritlgat .htppit�ruma8t Yer North ,ennem .trA- tation of arms and aircraft for the FDN," the U.S.-backed �u�v��iPl�:'� trk.�� mend .kibet at den dana". I coalUren. Erria bar tiden f�dl'�:i�;f�r��tp��t;:��::J� group of Contra insurgents. jonuarlidlto lr liuet i ar- k bet ..jlod� deNftMt .... t I Ko�r b.vn, tordi �e�. " ..n�r. vl�n ror tlmed­ It was Starkmann's Star Production, which fronts as a Queen Shippinl havde pe�- kanerne til Iran 01 til to, ,f' Ie til ,ode bOi coutor8N1 contro.styrkcrnc i Nicer.- so maker of cassettes and children's movies, which actually � n:l:; �=::; &ua. �:1M.,�:b;tc der har adreMe i' Firrraet. QutJe" Shlppln, paid IMES GmbH for the weapons loaded onto Parlow's Pia Schweb. oc ar bhil\ltt . tat i har ikke trurret bes1utni· Vesta that May 6. More curious still is the fact that the money Star Production used to pay IMES originated from the Banco This photo of the Tom Clines-Ollie North ship "Erria" appeared Arabe Espafiol of Madrid, whose head is the former head of in the Danish press. Qaddafi's Libyan National Bank, Abdulla A. Saudi. Still unanswered today is why a Libyan-controlled bank would be used to finance a shipment of East bloc arms destined for the "Peter a.k.a. Pablo Duncan" among those cited for supplying Contras, in a deal organized by the U.S. National Security the Contras under the Secord umbrella. Council to overthrow the Nicaraguan government. The open case of the Pia Vesta affair clearly hints at one But equally unexplained are the circumstances which possible reason for President Bush's obsessive efforts to get caused the return of the Pia Vesta from its sail toward Peru rid of Gen. Manuel Noriega, who had cooperated with Bush back to Balboa in Panama. On June 14, 1986 officials of as far back as 1976 when both men were heads of their the Panamanian government, acting reportedly on orders of respective national intelligence agencies. In a Feb. 4, 1988 General Noriega who himself had been alerted by Peru's interview with General Noriega on CBS, Noriega made pub­ President Alan Garda, the Panamanian government boarded lic that he had held a meeting Dec. 17, 1985 in Panama the Pia Vesta, discovered the arms and the false end-user with the NSC's Admiral Poindexter. According to Noriega, documents, and impounded the vessel and its contents. A Poindexter warned Noriega that unless he allowed the use subsequent investigation by the Peruvian Senate concluded of Panama as a staging ground to launch an invasion of that the Pia Vesta was actually carrying arms destined for Nicaragua, there would be "retaliation." Noriega refused. the Oliver North-backed Contras in Central America. Other Six months later he uncovered the Pia Vesta arms cache from indications emerged that the deal had all been arranged by a IMES GmbH in Rostock. Is there more to the Bush obsession Miami-based arms dealer named Duncan. The previously with Noriega than is yet public? Perhaps Schalck-Golodkow­ cited March 1986 memo from Clines to North also names a ski will fill out some important details.

EIR January 12, 1990 Investigation 61 �TIillNational

LaRouche: Panamain vasion is treasonto United States

by Jeffrey Steinberg

Whether or not President George Bush explicitly discussed embracing of this doctrine and a betrayal of all U. S. and the pending invasion of Panama with Soviet President Mik­ Western alliance basic strategic interests. LaRouche under­ hail Gorbachov at their December summit meeting in Malta, scored the role of Henry Kissinger in shaping this condomini­ the U. S. pre-Christmas action signaled a Bush administration um arrangement in a statement issued on Jan. 4: embrace of the global condominium arrangement firstspelled "The Bush administration is in effect a Kissinger admin­ out by Mikhail Gorbachov's mentor and once-removed pre­ istration. Kissinger is a property of Chatham House. He al­ decessor, Soviet Communist Party General Secretary Yuri ways has been, apart from his special connections pointed Andropov, in April 1983. out by the late James Jesus Angleton, who regarded him as If there was any doubt that the Bush administration was a Soviet spy, which is not entirely incorrect. This is Kissing­ operating from the terms of surrender that Andropov pre­ er. He represents powerful forces; he is not a power in him­ sented in his interview with Der Sp iegel publisher Rudolf self. He is a sort of poor imitation of the 18th-century Lord Augstein shortly before Andropov's death, all such doubts Shelburne, the Lord Shelburne who controlled King George were dispelled on Dec . 24, when, in a televised interview, III and much of the British parliament in the same manner Secretary of State James Baker III endorsed a Soviet invasion that Kissinger and his friends own George Bush, the Bush of Romania in order to consolidate the overthrow of the administration, and a significant part of the Congress, among Ceausescu regime. Four days earlier, Baker had averred to other things. the Foggy Bottom press corps that "both the United States "What we have seen is not a Bush-Gorbachov agreement, and the Soviet Union today are supporting democracy." but essentially a Kissinger agreement with Andropov and Both the illegal American invasion of Panama to over­ Gorbachov. This Kissinger agreement represents, actually, throw the Noriega government and install the dope-tainted the interests of the controllers of the U. S., otherwise known Endara puppet regime, and the endorsement of the principle as the Chatham House/Wilton Park apparatus of which Kis­ of Soviet armed intervention inside the Warsaw Pact, con­ singer is formally a spawn within the U.S. intelligence ser­ form precisely to the Andropov Doctrine. In April 1983, the vices. Soviet boss proposed explicitly that the United States and the "The Panama action was a part of the taking down of the Soviet Union mutually acknowledge new spheres of strategic U.S. military capabilities as [Defense Secretary Richard] influence-withthe United States sphere limited to the West­ Cheney has proposed in the preceding period, to limit its ern Hemisphere and the Soviet sphere subsuming all the capabilities essentially to that of a condominium partner of European and Asian regions bordering on Russia, as well as the vastly superior Soviet military capability. The reorienta­ sections of Africa. Within these spheres, each side would tion from defending the U.S. against a Soviet assault, which accept the other's right to use military force or any other is the looming threat of the firsthalf of the 1990s, in order to means to achieve stability and maintain political control. occupy itself with shooting our friends or our erstwhile Congressional candidate Lyndon LaRouche has de­ friends in the Western Hemisphere. That is what must be nounced this condominium arrangement and has branded understood, and that is what has happened." the December "M(Y)alta" summit as a Bush administration LaRouche, who was railroaded into federal prison on

62 National EIR January 12, 1990 "conspiracy" charges on orders from the Gorbachov regime Evans and Novak warned that the rush to conclude such a and its U.S. allies, minced no words in dismissing Bush's complicated treaty by an early fixed

EIR January 12, 1990 National 63 gress in the late 1960s. This is no exaggeration. Bush was in the vanguard of the Bush is no stranger campaign to make population control official U.S. domestic and foreign policy. In 1967 , he teamed up with fellow Repub­ lican Rep. Schneebeli to off¢r a series of amendments to to genocide the Social Security Act to make family planning services a priority. Their actions were largely prompted by congres­ by Kathleen Klenetsky sional testimony by Dr. Alan Guttmacher, president of Planned Parenthood and a protege of its founder, Margaret During George Bush's 1980 presidential campaign, he made Sanger, a leader of the Neo-Malthusian League, a member two gestures designed to improve his electability: He quit the of the Advisory Council of the Euthanasia Society of Trilateral Commission, after disclosures of his membership America, and a sponsor of the occultist Temple of Under­ cost him the New Hampshire Republican primary; and he standing. Among other provisions, the resulting House bill started to portray himself as being staunchly anti-abortion required even welfare recipient mothers of young children to and thus, presumably, pro-life. seek work. It also barred inareases in federal aid to states Neither gesture signified anything beyond a superficial where the proportion of dependent children on public assis­ change, dictated by political expediency. Bush's loyalties to tance increased. the Eastern Establishment have remained as strong as ever; Two years later, Bush was one of four congressmen to and his contempt for human life, at least for those billions of introduce legislation to create a National Center for Popula­ people who do not share his membership in the white, Anglo­ tion and Family Planning within the Department of Health, Saxon Protestant elite, was demonstrated with savage clarity Education, and Welfare. In aqdition, he took the initiative in in the slaughter of thousands of innocent civilians during the forming and chairing the House Republican Task Force on lawless invasion of Panama. Earth Resources and Population, just as the ecology move­ Not once during "Operation Just Cause" has Bush shown ment was about to be launched with great media fanfare any hint of conscience over the genocide which he has in­ and generous financial supportfrom liberal foundations. The flicted on Panama, nor the fact that Guillermo Endara, the Family Planning Services and Population Research Act au­ new U . S. puppet ruler of Panama, was a protege of the openly thorized $382 million for the establishment of a "comprehen­ pro-Hitler, anti-Semitic Arnulfo Arias. And no wonder! sive family planning program for the U.S." The act was Bush has played a conscious and crucial role in the criminal reportedly authored in part by PCClDraper Fund founder war on human life which the neo-malthusian population con­ Gen. William Draper, Jr. , a close personal friend of George trol lobby has been waging for the past decades. Promoting Bush's father, Prescott Bush. Nazi-style racial extermination policies is an integral compo­ Bush was defeated in his U.S. Senate campaign in 1970, nent of Bush's raison d' etre . but that did not deter him from pursuing the neo-malthusian Even the most cursory glance at Bush's political record agenda in his subsequent political capacities, as well as reveals him to be a committed neo-malthusian, an ardent through his membership in the Henry Kissinger-dominated devotee of the belief that there are too many people in the Trilateral Commission, which campaigned avidly for curbs world, and that getting rid of them should be a top priority on global population growth. of the world's political leaders. This same bestial view is During his stint as U.S. representative to the United Na­ shared by Bush's family, and by his closest political and tions in the early 1970s, Bush vociferously encouraged popu­ personal associates. Bush was for all intents and purposes lation control efforts, retailing the filthy lie that population bred to this outlook-an outlook which places him in direct growth was one of the worst dangers facing mankind. In conflict not only with the Judeo-Christian tradition as a 1973, he wrote the foreword to The World Population Crisis: whole, but more specifically with the Catholic Church, The U.S. Response, a book �uthored by Phyllis Piotrow. A whose continued opposition to population control has earned rabid proponent of population control, Piotrow subsequently it the undying enmity of Bush's political circles. wrote a diatribe against population growth for the New York Council on Foreign Relatiollls' infamous "1980s Project," The Bush record which called for the "controlled disintegration" of the world Bush's support for the genocide lobby's agenda came economy, and supplied a large portion of the policy blueprint early and oftenin his political career. In fact, he was the first and personnel for the Carter administration. U.S. congressman to propose population control legislation. In his foreword, Bush wrote that "the population problem According to the 1979 report of the Population Crisis Com­ is no longer a private matter. In a world of nearly 4 billion mittee/Draper Fund, George Bush was among the "most con­ people . . . population growth and how to restrain it are spicuous activists, proposing all of the major or controversial public concerns that command the attention of national and recommendations" on population control in the U.S. Con- international leaders.. .. It is quite clear that one of the

64 National EIR January 12, 1990 major challenges of the 1970s . . . will be to curb the world's conference that honored Nazi Dr. Rudin. fertility .. ..Major world problems like population and envi­ William Draper went on to play a pivotal role in inserting ronmental protection will have to be handled by large and population control into U.S. foreign and domestic policy. A complex organizations representing many nations and many New York investment banker, he served as honorary chair­ different points of view. How well we and the rest of the man of the Population Crisis Committee, an offshoot of his world can make the policies and programs of the United Draper Fund, and special counsel to International Planned Nations responsive to the needs of the people will be the test Parenthood, and also headed the seminal Draper Committee, of success in the population field." set up by President Eisenhower in 1958, which was to prove Bush noted that he had worked with Piotrow on popula­ one of the most important factors in establishing population tion control issues, and praised the leading centers of the growth as a "menace." Under the committee's aegis, Draper genocide lobby, including the Population Crisis Committee, issued numerous public statements calling the "population Planned Parenthood, the Population Council, Zero Popula­ problem ...the greatest bar ...to progress in the world," tion Growth, et aI., for having "played a major role in assist­ and urging concerted public action to limit popUlation ing government policymakers and in mobilizing the United growth. One of Draper's chief proteges was former State States response to the world population challenge that is Department bigwig George Bal1, who has called for totalitari­ described in this volume." an measures to curb popUlation growth, and who has bitterly attacked Pope John Paul II for opposing such efforts. All in the family In a 1971 article, Draper likened the developing nations Bush's commitment to population control is a reflection to an "animal reserve," where, when the animals become too of his family and his class. As witnessed by his frequent numerous, the park rangers "arbitrarily reduce one or another allusions to Teddy Roosevelt, Bush has patterned himself species as necessary to preserve the balanced environment after the odious racialist strain which became dominant in for all other animals. the U.S. elite during Roosevelt's reign. "But who will be the park ranger fo r the human race?" An important factor in shaping Bush's views is his fami­ he asked. "Who will cul1 out the surplus in this country or ly's longtime association with the Harriman family. Bush's that country when the pressure of too many people and too family on both his mother's and father's sides worked for the few resources increases beyond endurance? Will the death­ Harriman financial interests, and Bush's father, Prescott, dealing Horseman of the Apocalypse-war in its modem served on the board of Brown Brothers, Harriman from 1930 nuclear dress, hunger haunting half the human race, and until 1972. disease-will the gaunt and forbidding Horsemen become As this news service has documented, the Harrimans Park Ranger for that two-legged animal cal1ed man?" This sponsored the creation of the U.S. eugenics movement, same Draper was singled out by Bush for special praise in which led to the mass sterilization of the "feebleminded" and his foreword to the Piotrow book. "racially inferior" during the 1920s, and later transformed Draper's son, William III, has enthusiastical1y carried out itself into the popUlation control/environmentalist movement his father's genocidal legacy-frequentIy with the help of his after Hitler's genocide gave eugenics a bad name. As part of good friend, George Bush. Among other things, William this campaign, the Harrimans arranged several international Draper III sits on the board of the Population Crisis Commit­ eugenics conferences, one of which, held in 1932 at the teelDraper Fund, whose board has included two of the chief Museum of Natural History in New York, unanimously elect­ architects of the concept of "population war"-the use of war­ ed as its president Prof. Dr. Ernest Rudin, the head of the fare as a means of genocide-which Bush implemented in German Society for Racial Hygiene, who later wrote the Nazi Panama: the late Gen. Maxwel1 Taylor, and Robert "Body miscegenation laws against the Jews. Count" McNamara. Although EIR is still investigating whether members of In 1980, Draper, an enthusiastic backer of the Carter the Bush family were personally involved in these confer­ administration's notorious Global 2000report , served as na­ ences, we do know that Prescott Bush was very much a part tional chairman of the Bush presidential campaign's finance of the population control movement. In fact, as George Bush committee; in early 1981, Bush convinced Reagan to appoint has written, "My own first awareness of birth control as a Draper to head the U.S. Export-Import Bank. At the time, a public policy issue came with a jolt in 1950 when my father Draper aide, Sharon Camp, disclosed that Draper intended to was running for the United States Senate in Connecticut. reorient the bank's functions toward emphasizing population Drew Pearson, on the Sunday before Election Day, 're­ control projects. In 1987, again at Bush's behest, Draper was vealed' that my father was involved with Planned Parent­ named by Reagan as administrator of the United Nations hood. My father lost that election by a few hundred out of Development Program, which functions as an adjunct of the close to a million votes." World Bank, and has historical1y pushed population reduc­ We also know that Prescott's close friend, William Drap­ tion among Third World nations. er, Jr. , was a leading participant at the same 1932 eugenics George Bush pro-life? Hah!

EIR January 12, 1990 National 65 nate, Gen. Alexander Haig, from his post as secretary of Background to the News state, appointing George Shultz in his stead. Yet Shultz­ whose father Birl Earl Shultz had been at the center of East­ West power-sharing and economic dealings as part of the Anglo-Soviet "Trust" from the 1920s-turned at once to Henry Kissinger in a seven-and-a-half-hour meeting on July 17, 1982. It was the firstof many meetings that set the priorit­ ies of U.S. foreign policy. with Just before he resurfaced as a guru of American foreign Whatwent wrong policy folly, Kissinger had made a blunt admission as to u. s. where his principal loyalties had always lain. On May 10, foreign policy? 1982, in a speech before Britain's Royal Institute of Interna­ by Jeffrey Steinberg and Scott Thompson tional Affairs ("Chatham House"), Kissinger boasted of three decades of treasonous secret codicils between the British and American sections of the liberal Establishment, which had Now that the decade of the 1980s has ended, it is useful to shaped U.S. foreign policy. In his now-infamous speech, look back on events that shaped the course of U.S. foreign which was circulated with the endorsement of David Abshire policy toward its present fatal embrace of a global condomin­ of the Center for Strategic and International Studies (CSIS) ium with a Soviet empire that is itself dying from within. The and the Reagan administration, Kissinger said: seeds of that rotten deal were planted midway through the "The British were so matter-of-factly helpful that they first Reagan administration during the spring-summer of became a participant in internal American deliberations to a 1982. The seminal figure in that effort was the very same degree probably never before practiced between sovereign Henry Kissinger, whom presidential candidate Ronald nations. In my period in office, the British played a seminal Reagan declared throughout his 1980 campaign, would be part in certain American bilateralnegotiations with the Soviet persona non grata in his White House. Union-indeed, they helped draftthe key document. In my Jailed American statesman Lyndon H. LaRouche, Jr. , in White House incarnation, then, I kept the British Foreign a 1990 New Year's message, drew the following historical Office better informed and more closely engaged than I did parallel: "In respect to the events of 1982-83 leading into the the American State Department-a practice which, with all Bush election campaign of 1986-88 and the Bush administra­ affection for things British, I would not recommend be made tion of 1989, it should be stressed that Henry Kissinger's permanent. But it was symptomatic .... closest historical approximation in U. S. politics, is the role "In my negotiations over Rhodesia I worked from a Brit­ of Lord Shelburne, the Second Earl of Shelburne, during the ish draft with British spelling even when I did not fully grasp middle to latter part of the 18th century, when Shelburnewas the distinction between a working paper and a Cabinet-ap­ the leading adversary of the United States." proved document. The practice of collaboration thrives to Shelburne"eff ectively controlled Adam Smith, an adver­ our day, with occasional ups and downs, but even in the sary of the United States working for Shelburne and his recent Falklands crisis, an inevitable returnto the main theme cause. He was the controller of King George III, and the of the relationship." controller of William Pitt the Younger," LaRouche ex­ plained. The Bush administration "is essentially a Kissinger The economy: Reagan�s Achilles' heel administration ....Bush is a figurehead in a Kissinger ad­ President Ronald Reagan had won election to his first ministration. This is all Kissinger policy ...and Bush is­ term partly because of his campaign pledge that he would by being in largest part, owing to the Anglo-American liberal not let the hated Henry Kissinger have anything to do with Establishment as exemplifiedby his association with the Tri­ U.S. foreign policy. Yet, Reagan's perplexed adherence to lateral Commission and Yale earlier-essentially a part of an economic system based upon Shelburne's agent, Adam that." Smith , rather than American System economics, became the LaRouche qualified, "Shelburne, of course, was a much Achilles' heel through which Kissinger's promoters in the higher ranking figure than Kissinger, but nonetheless, for Anglo-American liberal Establishment managed not only to purposes of comparison, that makes the analogy." subvert Reagan's hopes for an independent U.S. foreign poli­ cy, but also to inject "creeping Kissingerism" into his admin­ Permission of the British cousins istration, abetted by such friends as George Shultz and Law­ Ironically, the action that brought Kissinger more directly rence Eagleburger at the State Department. into the Reagan administration policy counsels appeared to The immediate economic issue that Kissinger seized as many to be a defeat for Kissinger, namely when President his opportunity-the Third World debt crisis-also pitted Ronald Reagan summarily fired Kissinger's former subordi- Kissinger directly against political economist Lyndon H.

66 National EIR January 12, 1990 LaRouche, who in the summer of 1982 drafted his "Opera­ hemian Grove (which was portrayed in the November 1989 tion Juarez" plan, based upon American System economics. issue of Spy magazine as a kook farm servicing the rich That plan would not only have permitted an orderly reorgani­ and powerful with a rustic version of the Marquis de Sade), zation of the debt, saving the banking system, but combined Kissinger in 1982 held grope sessions with the new Secretary with even greater Third World rates of development, would of State George Shultz, former West German Chancellor spark an international economic recovery. The first battle­ Helmut Schmidt, Singapore's Lee K wan Yu, then FBI Direc­ ground on this issue was in Mexico in fall 1982. Kissinger tor William Webster and others. was to travel to Mexico, shortly after LaRouche's meetings On Aug. 19, 1982, Kissinger revealed this Grove meet­ with Mexican President Jose Lopez Portillo that summer. ing to have been the origin of the "Get LaRouche" effort, Kissinger's own trip, to demand InternationalMonetary Fun­ when he wrote "Dear Bill" Webster demanding that action d-style austerity instead of the American System approach be taken against LaRouche. The ensuing floodof correspon­ put forward by LaRouche, coincided with the founding of dence, which was released under the Freedom of Information his global influence-peddling firm, Kissinger Associates, Act and published across the country by major media and in Inc., in partnership with Britain's Peter Lord Carrington, the Congressional Record, culminates with a Jan. 12, 1983 Gen. Brent Scowcroft, and others . The clients included such memorandum from "Dear Bill" Webster authorizing a com­ major creditors of Third World nations as Chase Manhattan plete investigation of "the LaRouche Group's" finances. Bank. Webster said that this memo was based upon a mandate from When on Sept. 1, 1982 President Lopez Portillo national­ PFIAB . At a PFIAB meeting, the publicist of Kissinger's ized the Mexican banks, a spokesman for Kissinger Associ­ Chatham House speech, David Abshire, had called for an ates warned thatMexico must submit to IMF austerity, re­ investigation of whether LaRouche "might be funded by hos­ gardless of whether this creates a "volatile and potentially tile intelligence agencies." Kissinger's friend, Edward Ben­ unstable situation," that may lead to "serious problems­ nett Williams, had seconded this demand from PFIAB . Thus potentially even a coup-before 1990." officially began the "Get LaRouche" task force, and, less Kissinger's declaration of war against the sovereignty of than a year later, after Kissinger had completed work on the Ibero-American nations on behalf of the banks was shopped President's Bipartisan Commission on Central America, the into the Reagan administration not only by Shultz at the once-unwelcome Kissinger was himself placed on PFIAB . State Department, but also by Director of Central Intelligence William Casey and Casey's lifetime sidekick Leo Cherne, Kissinger and Andropov against the SDI who was then vice chairman of the President's Foreign Intel­ The year 1983 marked even more intensive political war­ ligence Advisory Board (PFIAB). As Cherne himself has fare between Kissinger and LaRouche, when on March 23, since confirmed, the Mexican debt crisis sent a shockwave President Reagan adopted the LaRouche-authored "beam through the administration. PFIAB not only set up an emer­ weapons" policy later named Strategic Defense Initiative, gency Third World debt task force, but DCI Casey, with despite a full-scale attempt by Soviet leader Yuri Andropov presidential approval, charged U.S. intelligence as a whole and the KGB to stop this from occurring. Soviet countermea­ with the task of economic warfare against Ibero-American sures afterthe speech were varied and increasingl y desperate. and other debtors, driving this major instrument of U.S. In April 1983, the German weekly Der Sp iegel carried an foreign policy-the intelligence community-into the hands interview with Andropov offering a global condominium, of the Anglo-American liberal Establishment on this critical which would cede the Western Hemisphere to U. S. hegemo­ issue. ny, while leaving Europe, Asia, Africa, and the Middle East as potential areas for Soviet hegemony. This "Andropov It started at the Grove Doctrine" is the cornerstone of the condominium arrange­ There were many other issues that pitted Kissinger ments of the Kissinger-directed Bush administration, espe­ against LaRouche in political intelligence warfare-includ­ cially since the Malta summit. ing, for example, the revelations by LaRouche's associates However, President Reagan did not immediately drop throughout 1981 that Kissinger had been tied to the illegal SDI in favor of such "balance of power" arrangements, de­ Propaganda 2 Freemasonic Lodge in Italy; and the August spite the urgings of such Kissinger cronies as Secretary Shul­ 1982 filing of a legal brief in Rome, by a close LaRouche tz . By the autumn of 1983, starting when the Soviets shot associate, citing Kissinger's repeated threats to Christian down KAL 007 , and escalating from there, the Soviets ap­ Democratic Party chairman Aldo Moro who was subse­ plied massive psychological pressure to make the Reagan quently slain by terrorists linked to that same P-2 Lodge. But administration "blink." Kissinger-linked forces within the it was possibly because of the debt issue that at the July 1982 Reagan administration led the capitulation to this pressure, gathering of the quasi-Masonic West Coast cult, "Bohemian ousting William Clark from his position as National Security Grove," Kissinger conspired with fellow revelers to launch Adviser, and breaking off all direct contact with Lyndon a "Get LaRouche" operation within the government. At Bo- LaRouche and his associates at EIR .

EIR January 12, 1990 National 67 development, has been outlawed by the proteges of Robert Strange McNamara in the Pentagon and other government bureaucracies. Instead, there is a deliberate policy of "nation destruction. " The military still pays lip-service to the "nation-building" the idea, and the 352nd Civil Affairs Command will be sending Rock and cultural a number of doctors and other, useful specialists to Panama; but the main focus of these operations will be to build a new war synthetic governmentand social structure. against Panama According to Pentagon officials, one main objective of by Leo F. Scanlon the invasion was to isolate the leaders ofthe PDF and political parties associated with the Noriega government from the The ugly spectacle of U.S. military forces in Panama blaring population. Most of these individuals are now detained in explicitly satanic rock and roll music at ear-shattering deci­ prison camps established by the U.S. military forces; some bels at the the embassy of the Vatican in Panama City, where have disappeared and are presently unaccounted for. In the Panama Defense Forces chief Gen. Manuel Noriega was in meantime, the effort to create a government congruent with sanctuary, has justly evoked international disgust and out­ American "popular culture" is the prime focus of the civic rage. Not only was the action deliberate and authorized at the action teams. highest levels, but it typifieswhat was morally reprehensible about the invasion as a whole. Methods of 'community control' The "rock assault" was conducted by elements of the A declassifiedArmy document describes the methodolo­ 4th Psychological Operations Group from Fort Bragg, North gy involved in a model "Citizenship-Training Program of Carolina, which accompanied the 82nd Airborne troops who 'Psychological Operations' of Interpersonal Communication invaded Panama in December. According to knowledgeable Designed to Achieve National Identification, Motivation, sources, the decision to engage in such a provocation would and Constructive Community Action": "The core of the pro­ likely involve the State Department and the U.S. Information gram ...consis ts of group interaction ....The organizers Agency, as well as the military commanders directing the must include persons knowledgeable in the universal princi­ campaign on the ground. ples of human interaction (social psychology) and in ... The incident is cavalierly dismissed in Washington-by [cultural anthropology] . . . the graduates of each course will apologists as a harmless prank, by the White House as an be organized as an Action Group that will keep meeting expression of "the American sense of whimsy," and by the permanently every two weeks. At the fortnightly meetings Pentagon as "an effort to prevent eavesdropping on the con­ each member is expected to report on his success and prob­ versations of American soldiers." But the operation was lems in teaching the course to new groups, as well as his truthfully characterized by an American colonel interviewed success and problems in promoting community civic action by ABC-TV as part of a "secret psychological warfare pro­ aimed at environmental improvement. As a sociologist gram" which utilized rock and roll to attempt to destabilize would say, the Action Group meetings provide a 'reference Noriega, who is known to be an opera lover. Such activities group' ...an ongoing source of continuing civic action." will likely be the hallmark of the coming civic action cam­ This sociological schema is taken directly from the com­ paign to "stamp American influence" on the puppet govern­ munity control experiments run by the New Left in the United ment being created in Panama. States in the 1960s. "These guys are the fingernails on the blackboard," an According to the Washington Times, a pro-administra­ Army officialtold the Washington Post. "They are very so­ tion mouthpiece on such issues, "A Springsteen concert is a phisticated in the psychological aspects of war.... They patriotic event. Bruce is at the forefront of what America are engaged in propaganda." The Post went on to report does best-produce trash culture. We have not exactly that the official was describing the psychological operations bowled over the world with classical musicians, sculptors, forces which have been shaping the events leading up to and and poets, but America has produced Hollywood movies, following the massive invasion. "They are the troops roaring fast food chains, television shows, jazz and rock. . . . Ameri­ through the streets of Panamanian communities in tanks for ca's trash culture is a whirHng dynamo ....Its anarchic a show of force. The troops roaming door to door in the energy and its 'give the people what they want' ethos make countryside passing out pro-American leaflets, the men it incompatible with Communist culture. " pumping ear-piercing music into the Papal Nunciature." A columnist, disparaging, efforts to censor pornographic An Army official says, "We call them nation builders." and satanic rock lyrics adds: "Rock and roll does not threaten Since the earliest days of the Vietnam War, real nation the American way. More oftenthan not it has supported what building, in the meaningful sense oflarge-scale infrastructure we cherish."

68 National EIR January 12, 1990 Kissinger Watch by M.T. Upharsin

portfolio had been handled by Kis­ pledges for the billions of dollars dam­ singer Associates president Larry Ea­ age done by America's military "steel gleburger. Midland's Crocker subsid­ wall" tactics. In fact, Reuters news iary was indicted in 1985 for launder­ service, which reported the Eagle­ ing over $3 billion which the Treasury burger mission as kicking around a Department believed to derive from piddling $70 million figure, quoted "Golden Triangle" opiUm/heroin pro­ Eagleburger that Panama's economic ceeds. problems had been caused by "the Fatties in the misrule and corruption of the Noriega regime"-a neat way of letting the White House Fat Larry's travels United States off the hook for the ef­ Fat Henry, who once incurred the No sooner had Kissinger piped up to fect of two years of U . S. sanctions and wrath of Ibero-America by pontificat­ dismiss the fuss in Ibero-America the recent blistering bombardment of ing that "nothing important has ever about Panama, than his former em­ Panama City . come out of the South," added a new ployee and current Deputy Secretary Zbigniew Brzezinski, the former dimension to his disdain for the region of State, the even fatter Lawrence Ea­ Carter National Security Adviser who when, from his Christmas vacation gleburger, was dispatched by Presi­ today sits with Henry Kissinger on spot of Venezuela, he said: "I support dent Bush to head a commission, os­ President Bush's Foreign Intelligence President Bush," but the invasion of tensibly to investigate the financial Advisory Board (PFIAB), recently Panama is only an "incident." needs of Panama. But, the State De­ recommended Fat Larry for a new job: Kissinger apparently finds the partment refused to rule out that Fat overseeing all U. S. aid programs to question of prompt debt service pay­ Larry might have really been sent for Eastern Europe. As National Demo­ ments to Kissinger's clients, like the a last-minute push to pressure the Vat­ cratic Policy Committee spokesman Chase Manhattan Bank, far more im­ ican into releasing Gen. Manuel No­ Scott Thompson, who was the only portant than a resurgence of "gunboat riega from the Papal Nunciature in person to testify against Lawrence Ea­ diplomacy incidents." Panama City. gleburger's nomination, warned last Henry Kissinger chose as his com­ Wasn't this the same Larry Eagle­ spring, Larry Eagleburger's client panion on this little Shylock debt col­ burger who, afterhis December China portfolio at Kissinger Associates in­ lection jaunt, fashion designer Oscar trip to meet Deng Xiaoping, the cluded several firms that have invest­ de la Renta. He made a three-hour vis­ "butcher of Beijing," had Henry Kis­ ed billions in Eastern Europe, raising it to Caracas for meeting President singer insist on CBS television that the question of a major conflictof in­ Carlos Andres Perez, traveling from criticism of the trip was unfounded, terest should he once again become Santo Domingo, where de la Renta because "all sorts of human rights is­ involved in East-West trade issues. owns a villa called "La Romana" that sues" raised during his visit would Not only are banks of Kissinger is notorious among jet setters and is soon become known? Among those Associates creditors located in East­ Kissinger's regular Yuletide haunt. issues, Fat Henry claimed that Fat ern Europe-including Poland, where The Cisneros clan of Venezuela once Larry had raised was the right of Chi­ Kissinger has advocated the sort of In­ again providep Henry with their pri­ nese dissident Fang Lizhi to have ternational Monetary Fund-style aus­ vate plane. sanctuary at the American Embassy in terity that will discredit and possibly As EIR has elsewhere docu­ Beijing. topple the Solidarnosc government­ mented, the Cisneroses have much in The actual purpose of Larry Ea­ but Larry Eagleburger specialized in common with Henry Kissinger, espe­ gleburger's trip to Panama may only businesses working in Yugoslavia. He cially since they banned distribution become known months from now, as was a member of the board of Global of a book in Venezuela that linked happened with the secret trip he and Motors which produces the Yugo, and them to financial institutions and per­ Kissinger crony Gen. Brent Scow­ is a member of the LBS Bank of New sons believed to be involved in drug­ croft (the only thin one of these three York, itself a wholly-owned subsid­ money laundering. Several of Kis­ stooges) had made to China last July, iary of the Yugoslavian Lj ubljanska singer's own clients, of course, are which only became known in Septem­ Banka, that was indicted in 1988 for also linked to drug-money laundering, ber. But whatever Eagleburger in fact money laundering related to attempts including Midland Bank PLC, whose did, he certainly did not deliver cash to violate the Arms Control Act.

EIR January 12, 1990 National 69 National News

ings and loan system and will subpoena re­ cords including those of an allegedly fraudu­ lent land deal between Lincoln and the Den­ Nunn urges deep cuts ver-based Silverado S&Ls, the European Conflict of interest edition of the Wall Street Journal reported in forces in Europe Dec . 27. haunts the Bushes Senate Armed Services Committee Chair­ "Neil Bush, son of President George The White House denied charges on Dec. man Sam Nunn (D-Ga.) has launched a Bush, served on Silverado's board until 29 that President George Bush's brother campaign for a massive withdrawal of shortly before the thrift was seized by U.S. Prescott Bush is involved in a conflict of American forces in Europe. regulators ," the Journal noted. President interest in the People's Republic of China Nunn told the Jan. I New York Times Bush himself was present as recently as ear­ by having a consulting contract with a firm that the Bush administration proposal to the ly December at a Denver Republican fun­ benefiting from the President's recent ap­ Conventional Forces in Europe reduction draiser chaired by LarryMiz el, whose MDC proval of the sale of military satellites to talks (CFE) to reduce the number of Ameri­ Holdings Inc . real estate company is impli­ Beijing. can ground troops in Westem Europe from cated in the collapse of both Lincoln and Shortly after the Tiananmen Square the current 305 ,000 to 275 ,000 is inade­ Silverado. massacre , Asset Management International quate , and that the U.S. should be seeking Mike Milken, the former junk bond king of New York hired Prescott Bush under a to cut its troops to between 200-250,000. at Drexel BurnhamLambert whose lawyer, $250,000 a year consulting contract, which The U.S. should inform its NATO allies Arthur Liman, had formerly served as coun­ entailed establishing a communications link that "what we are going to be evolving to­ sel to the Senate Iran-Contra hearings in via satellite, and the value of which was ward will include U.S. strengths, and our 1987, is expected to be subpoenaed. Drex­ enhanced by Bush's go-ahead for selling strengths don't include getting a huge num­ el's Belgian mother firm, Banque Bruxelles Hughes Aircraftsat ellites to the P.R.C. This ber of heavy forces to Europe during an Lambert, was implicated in the CIA's Iran is the second China deal in which Prescott emergency," Nunn said. weapons traffic as a financial intermediary. Bush has been involved since May 1988, Echoing a proposal made by David Ow­ when it was revealed that he had acquired a ens published by the Council on Foreign one-third interest in the development of a Relations, Nunn said that there should be a country club in Shanghai . division of labor in NATO in which the U.S. Prescott Bush sits on the board of would specialize in air power, while Euro­ Americares, the Maltese Order's Contra pean NATO members would assume more ADL head attacks supply operation . responsibility for ground defense. "Inde­ pendent of Gorbachov," he said, the U.S. Panamanian Jews "should have been putting more emphasis The national director of the u. S. Anti-Defa­ on air power and on light mobile forces." mation League head Abraham Foxman at­ Nunn also advocated a "partial , gradual tacked Panamanian Jewish leaders for de­ Pa. paper defends rights drawdown" of American troops in South manding that the U.S. pay reparations to Korea, and the withdrawal of some U.S. Jewish businesses that were looted during of Lewis du Pont Smith troops from Japan. the American invasion of Panama, accord­ The West Chester Daily Local News of Nunn is expected to push this agenda­ ing to the Dec . 26 Jerusalem Post. Chester County, Pennsylvania, editorial­ which accords totally with the current direc­ "There is a cost for freedom and liberty. ized Dec . 26 that Lewis du Pont Smith, a tion of Bush administration policy, and with I hope they have an insurance policy. There political supporter and financial contributor the Andropov doctrine-when his commit­ may in fact be some kind of settlement. The to the causes associated with Lyndon tee begins hearings later in January on the U.S. will do a lot because the economy of LaRouche, is being harassed for his political Pentagon budget and the development of a Panama is important to it. But to put forth a beliefs . Smith is currently involved in a le­ new U.S. military strategy. claim is terribly premature-and counter­ gal effort to overturna decision of incompe­ productive," Foxman said. tency, imposed because of those beliefs. According to the Post, Foxman was re­ "A Chester County judge maintains that acting to a statement by Moises Mizrachi, du Pont heir Lewis du Pont Smith is mental­ head of the ADL Committee in Panama, ly incompetent to manage his finances, but Bush family faces S&L who claimed that 90% of the stores looted is that a judgment against Smith's politics during the invasion were Jewish-owned, and not his psyche?" asks editor Bill corruption scandal and that losses approached $1 billion. The Mooney . House Banking Committee Chairman Rep . Jewish businesses are insured but the insur­ The paper noted that the bulk of the testi­ Henry Gonzalez (D-Tex.) is planning to ance companies are not paying since the pol­ mony of Dr. Abraham L. Halpern, a psychi­ continue his hearings into abuses of the sav- icies do not cover acts of war. atrist and leading authority on mental

70 National EIR January 12, 1990 Briefly

health, is "that he does not believe Smith's cause they deprive the parties against whom • 'LYNDON LAROUCHE fol­ conduct merits" a definitionof incompeten­ they are directed the root requirements of lowers will win at least two state pri­ cy. "Smith has donated large sums of money due process-notice of the allegations and maries out west," the Washington to the political organizations of right-wing an opportunity for a hearing," he said. Times predicted on Jan. 1 in its extremist Lyndon LaRouche," the paper NDPC's new appeal asks, I) Whether "prophecies" for 1990. noted, but "Other than that, if there is any the district court erred on remand when it evidence that Smith is mentally unfit, it has imposed $2.77 million in contempt fines • CHARLES KEATING'S law­ yet to surface . upon a political action committee, a) with­ yers will argue in upcoming court "Smith believes he is in effect a political out a hearing and b) based solely upon an proceedings that the Lincoln savings prisoner. He might be right. ... affidavit and documents filed ex parte, in and loan thrift should not have been "People-both foolish and practical­ camera by the United States, and 2) whether seized by the governmentsin ce it was are separated from their money every day in the district court erred by imposing daily not insolvent and investments the America, and they are not hauled into court contempt fines for alleged non-production government considered risky would and declared incompetent. . . . of documents to a grand jury after the grand have paid off oV!er time, Reuters re­ "Testimony also has shown that Smith jury ceased to sit, and by denying a hearing ported. disagrees with LaRouche on some issues, to determine when the grand jury ceased to so it is hard to argue that he is a zealot to the sit. • U.S. AIR BASES in Britain have cause, that he has surrendered all free will been ordered by the Pentagon to re­ to the man .... move bumper stickers with cold war "It's the money-not the man-that slogans such as "F-lllE-Warsaw others are worried about. If he is being fool­ RICO used against Pact Central Heating," and "Jet­ ish with it, well there is no law against that. noise-the sound of freedom," the "And it seems clearer as this case drags pornography opponents Sunday Telegraph reported Dec. 30. through the courts that he is simply being A Racketeering Influencedand Corrupt Or­ harassed for his beliefs." ganizations (RICO) suit has been filed • NEIL HARTIGAN, the Attor­ against the American Family Association of ney General of Illinois, on Dec. 26 Florida "in retaliation for that anti-pornog­ declared that Mark Fairchild, his raphy group's attempts to get certain 'sexu­ Democratic primary opponent for ally explicit' magazines off the shelves of governor and running-mate Sheila NDPC files new appeal convenience stores and other outlets," Vil­ Jones had no right to be on the ballot, lage Voice columnist Nat Hentoff reported regardless of the validity of their peti­ to stop liquidation Dec. 9. tion signatures, because they are The National Democratic Policy Committee "Among the 'patterns of racketeering' "anti-Semites" and "racist." Sheila (NDPC) , the political action committee rep­ employed by the defendants . . . have been Jones is black. resenting the LaRouche wing of the Demo­ letter-writing, boycotts and threats of boy­ cratic Party , has filed a new appeal to the cotts ," he reports . The suit has been filed by • GEORGE BUSH was criticized First Circuit Court of Appeals in Massachu­ Burton Joseph, representing Playboy Enter­ by the Dec . 26 Washington Times for setts , announced NDPC Chairman Warren prises; Maxwell Lillienstein, counsel for the his refusal to do anything about the J. Hamerman Dec . 30. American Booksellers Association; and Mi­ bombing of PanAm 103. "The ques­ "We are challenging the . Government's chael Bamberger, counsel to Media Coali­ tion remains open as to whether Pres­ attempt to destroy a purely political organi­ tion and lead lawyer for all the plaintiffs . ident Bush is willing to use force zation based solely upon the in camera, ex Hentoff reported that the AFA is against governments that sponsor ter­ parte filing of an affidavit by an assistant charged with acts of "extortion" which rorist acts against Americans. " U. S. Attorneyand other secret documents," "consisted of sending 'numerous' letters Hamerman reported. and postcards, picketing the home of an of­ • THE UNITED MINE Workers "What the U.S. government has at­ ficer of a wholesale distribution company, reached a tentative settlement with tempted to do against an independent politi­ and threatening to hold a press conference. Pittston Coal Co� which may set the cal action committee is unconstitutional and "As Gara LaMarche, program director stage for government involvement in unprecedented . . . [by] attempting to do it of PEN's Freedom to Write Committee, the retirement benefit plans of the through secret exparte proceedings, furtive points out: 'These are powerful institutions coal industry. While no details will in camera filings and sealed affidavits," with many means at their disposal to counter be released until the membership Hamerman said. "Our appeal is based on the AFA-without lending legitimacy to an votes on the agreement, it appears many legal precedents which establish that extremely repressive tool like RICO. What that Pittston will no longer be bound in camera proceedings are extraordinary they've done will come back to haunt them. by industry-wide agreements . events in the constitutional framework be- And all of us. ' "

EIR January 12, 1990 National 71 Editorial

There is no 'peacediv idend'

Around Capitol Hill, and in some of the news media, and in real estate and in banking. Look at the collapse a lot of the politicians and commentators are talking in manufacturing. Look at the collapse in retail sales, about what they call a "peace dividend." What they as typified by the lower profits in retail sales which mean is that they believe that very hefty cuts in the have helped to send the junk bond-riddled Campeau U.S. defense budget mean more money in the budget trust toward bankruptcy. Look at a lot of things going to be spread around to other things, particularly some bad very fast, and one thing tumbling after another. social good doings that some of their constituents might On top of this, the global strategic crisis which like. Forget about it; there is no peace dividend. LaRouche predicted would be sparked by the Soviet There are two reasons for this. First of all, on the Union by mid-January, was formally ushered in on Jan. smaller side of things, it is possible that the cuts in the 4 with the announcement by the Soviet ambassador to defense budget may shrink the tax revenues by as the United Kingdom, Leonid Zamyatin, that Gorba­ much, or even a greater amount, than is taken out of chov is postponing all contact with foreign politicians defense. That is because the defense budget, in at least scheduled for the month of January, and probably for some of the items which are being cut, is one of the the succeeding months as. well. The stock markets, biggest stimulants to the U.S. economy. States like especially in Japan, trembled at the news. This Soviet Massachusetts and parts of Californiadepend crucially crisis is preparing a rude awakening for those disgustin­ on defense spending to maintain the high-technology gly immoral fools who have been saying that the U.S. sector of their economy. Without that high-tech sector military no longer has a s�gnificant function vis-a-vis in their economy, the whole economy of the state will our primary strategic adversary-the Soviet empire­ suffer greatly. Thus, the United States could lose more so that U . S. forces can be used now to begin shooting tax revenue than it saves in defense cuts just from that down our former allies and friends in various parts of source alone. the world. However, at the same time, the United States is There are three possible areas where the Soviets going into the biggest depression of the 20th century. might intervene militarily: 1) Azerbaijan, 2) the Baltic, Now, it could be stopped; we could have a recovery as part of a Bush-Gorbachov deal involving Panama­ program. The economist Lyndon LaRouche has had or at least what Bush thinks is a deal, and 3) Eastern draft plans for that for a number of years . These would Europe, in either Czechoslovakia or East Germany . work quite well. But unfortunately, George Bush and Only a fool would wait for shots to be fired, to deal the crew around him are dead-set against the kind of with the fact that the Soviet military machine is on the recovery measures which are necessary to stop this move. economic depression. And therefore, if George sticks So we're headed for the biggest depression of the to his guns, you can count on a depression. century and a military disaster, unless we suddenly As a matter of fact, the depression already started change George Bush's policies for something like the between last summer and last fall. But now we're going "American System" policies which LaRouche has pro­ to see things blow. Not necessarily the stock market posed. We can get out of it, but not if we don't change right away. Don't look at what some people call the the composition of the Congress and if we don't change "Upside-Down Jones Index." Look rather at real the way the administration runs its financial, economic, things; look at real estate markets, sales of real estate, and monetary policy. There is no "peace dividend. " construction in the real estate sector, such as homebu­ We're still in a world crisis. The only dividend we are ilding, the business, industrial sector. Look also at the going to get is by electing the right people, the people mortgage sector. Look at bankruptcies in construction who have a genuine economic recovery program.

72 National EIR January 12, 1990 �ilillSpe cial Reports Comprehensive, book-lengtl1 Project Democracy: The 'Parallel Govern­ ment' Behind the Iran-Contra Affair. Order documentation assembled by #87001. $250. EIR's intelligence and research Germany's Green Party and Terrorism. The staffs . origin and controlling influences behind this growing neo-Nazi political force. Order #86009. The 'Greenhouse Effect' Hoax: A World Fed­ $150. eralist Plot. Order #89001. $100. Moscow's Secret Weapon: Ariel Sharon and Global Showdown Escalates. Revised and the Israeli Mafia. Order #86001. $250. abridged edition of the 1987 report, second in The Trilateral Conspiracy Against the u.S . ErR's Global Showdown series. Demonstrates that Constitution: Fact or Fiction? Foreword by Gorbachov's reforms were designed according to Lyndon LaRouche. Order #85019. $100. Marshal Nikolai Ogarkov"s war plan for the So­ Economic Breakdown and the Threat of vi�t economy. Order #88008. $250. Global Pandemics. Order #85005. $100. AIDS Global Showdown-Mankind's Total * First two digits of the order number refer to year of publica­ Victory or Total Defeat. #88005. $250. tion.

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LaRouche-at th e center of current history

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"Lyndon LaRouche is striving to undermine the influence of Communists and other left forces among the workers and student youth." -Izvestia, March 12, 1984

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