The trail leads from Russia's KGB ... to Shabtai Kalmanowitch. • • to Armand Hammer ... to George Bush.

Now, for the first time, EIR tears the mask off President George Bush's full and witting involvement in the Irangate scandal-and in Moscow's takeover of the U.S. intelligence establishment. SPECIAL REPORT The Kalmanowitch Report: Moscow'S Moles in the Reagan-Bush Administration

with a preface by Lyndon H. laRouche, Jr.

On December 23, 1987, some were shocked at the The threads of the Kalmanowitch story lead into the _ news that Israeli playboy and arms trafficker Shabtai most sophisticated sorts 'of Soviet warfare against the Kalmanowitch had been caught working as a top West: from the brothels and casinos of Bophuthat­ agent for the Soviet KGB. But it was no shock to swana in South Africa, to the burgeoning Russian ma­ George Bush's "secret government" which had just fia in the United States, to the "State Department finished brainwashing President Reagan into accept­ socialist" Roy Godson, to Soviet agent Armand Ham­ ing Moscow's phony "peace" treaties. mer, and directly into the Reagan-Bush White House.

For more than 20 years Moscow has been using the Israeli intelligence services as a conveyor-belt to place 120 pages Price: $ 150 its agents high within the U.S. government. And al­ Make checks payable to: though "little fish" Jonathan Jay Pollard was caught EIR News Service, Inc. passing U.S. secrets to Israel-and from there to the , KGB-the man who recruited Pollard still walks free P.O. Box 17390 at Tufts University in Massachusetts. Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. From the Editor Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Editoral Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Uwe Parpart­ Henke. Gerald Rose. Alan Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher here is no better example at this time of the need White T for an indepen­ Science and Technology: Carol White dent press guided by the tradition of the American System as it was Special Services: Richard Freeman conceived by Franklin, Washington, and Lincoln, than the need to Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings reverse the travesty of U.S. foreign policy in Panama. We at EIR

INTELLIGENCE DIRECTORS: have been exposing for over four years the way in which the U. S. Africa: Mary Lalevee liberal Establishment was preparing to keep Panamanians from tak­ Agriculture: Marcia Merry Asia: Linda de Hoyos ing control of the Panama Canal, by staging a violent bloodbath to Counterintelligence: Jeffrey Steinberg. provide cover for U.S. military action against the popularly support­ Paul Goldstein Economics: Christopher White ed Panamanian Defense Forces. Now that scenario is being played European Economics: William Engdahl. out; but as we write, Panama is still resisting. Laurent Murawiec Ibero-America: Robyn Quijano. Dennis Small This resistance is being portrayed in the U.S. major media as the Law: Edward Spannaus Medicine: John Grauerholz. M.D. actions of a "drug-running dictator," General Noriega, in opposition Middle East: Thierry Lalevee to the "will of the people." Soviet Union and Eastern Europe: But before Rachel Douglas. Konstantin George you believe that heavy propaganda line, consider that Special Projects: Mark Burdman it is being brought to you by the same media that delivered America United States: Kathleen Klenetsky over to the Jimmy Carter presidency in 1976. Remember that al­ INTERNATIONAL BUREAUS: though Carter Bangkok: Pakdee and Sophie Tanapura won his narrow margin of victory through well-docu­ Bogota: Javier Almario mented vote fraud-I suppose that qualifieshim as an expert observ­ Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen er of electoral manipulation in Panama!-the universal disgust of Houston: Harley Schlanger Americans with Henry Kissinger meant that few were willing to Lima: Sara Madueno Mexico City: Hugo Lopez Ochoa. Josefina mobilize to defend Gerald Ford's actual electoral victory. Then in Menendez 1980, American voters voted against Carter with the same vehem­ Milan: Marco Fanini New Delhi: Susan Maitra ence they had earlier voted against Kissinger. Paris: Christine Bierre Now under Bush, we have the return of the two most detested Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio. Ste/ania Sacchi figures of postwar U.S. politics, Kissinger and Carter. Our cover StOCkholm: Michael Ericson story this week pinpoints some of the institutions and individuals Washington, D.C.: William Jones Wiesbaden: Garan Haglund through which this most un-democratic comeback is being staged, by the same mealy-mouthed forces proclaiming their commitment to EIRIExecutive Intelligence Review (ISSN 0273-6314) is published weekly (50 issues) except for the second week "democracy" in Panama. For the truth about events in Panama, see of July and last week of December by New Solidarity International Pres.' Service P.O. Box 65178. Washington. page 34. DC 20035 (202) 457-8840 Europ.all H.lIIlquru1.rs: Executive Intelligence Review On a totally different plane-the plane of d�fining the kind of Nachrichtenagentur GmbH. Po.tfach 2308. Dotzheirnerstm.se 166. 0-6200 Wie.baden. Feder.1 Republic thinking and policies that will rescue our planet from the New Dark of Germany Tel: (06121) 8840. Executive Director.: Anno Hellenbroich. Age-I was privileged to represent EIR' s readers at the wonderful Michael Liebig conference held in Rome on May 5-6 to celebrate the 550th anniver­ III Dellmark: EIR. Ro.envaenget. Aile 20. 2100 Copenhagen OE. Tel. (01) 42-15-00 sary of a great turning point for our civilization, the Council of III M.xico: EIR. Fmncisco Dfaz Covarrubias 54 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. Florence. In this issue I have provided a first report of the proceed­ JaptJII subscription sal.s: O.T.O. Research Corporation. ings. Expect more soon! Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (OJ) 208-7821.

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TIrnContents

Interviews Departments Economics

8 Thomas T. Irvin 13 Report from Rio 4 Austerity policy lies The Georgia Agriculture IMF rule or democratic elections. behind attack on Speaker Commissioner exposes the hoax of Wright "organic" farming. 46 Report from Bonn With tlte pundits now predicting Germans fear U.S. strategic less than a 50-50 chance of his reversal. political survival, it is time for him to expose the "hidden agenda" Books 47 From New Delhi of his opponents. Toward "local self-government." 52 From the Hitler-Stalin 6 IMF under Brady: a plea for reassessment Pact to 'Operation 48 Dateline Mexico Barbarossa' Sonora narco-politicos falling? Michael Liebig looks at Der 7 Southern Thailand goes Eisbrecher: Hitler in Stalins for the Kra Canal 49 Andean Report Kalkill, by Victor Suvorov. Peru reels from narco-terrorism. 8 The need for modern 56 A romantic view of the agriculture: "You can't 59 Books Received superpower deal move backwards" Nicholas Daniloffs Two Lives, An interview with Georgia 72 Editorial One Russia. Agriculture Commissioner Thomas Tale of two juries. T. Irvin. 57 Total war: a strategy for snatching victory from the 10 Currency Rates jaws of defeat Science Technology Turning Defeat into Victory: A & 11 Agriculture Total War Strategy Against Peking The "continued recovery." by Gen. Teng Chieh. 16 Cold fusion experiments spark heated debate 12 Banking Marsha Freeman reports on the Restructuring agricultural credit. range of reactions that the scientific community is AIDS Update experiencing over the continuing 14 Business Briefs developments in "cold" fusion. 68 Burton warns millions could die of AIDS 19 Idaho National Engineering Lab: forty years of nuclear research Vo lume 16 Number- 21, May 19, 1989

Feature International National

34 Panama leads battle 60 Invoking 'peace in our against limited sovereignty time,' Bush adopts Bush is using the same arguments Kissinger plan Hitler used to annex the The President's speech at Texas Sudetenland, to justify ordering A&M University ushered in a new troops into Panama. era of "welcoming the Soviet Union back into the world order." 37 Schiller Institute celebrates

Jimmy Carter as President, surrounded by his entou­ Council of Florence 62 Supreme Court denies rage of aides from the Council on Foreign Relations anniversary LaRouche- bond appeal and the Trilateral Commission. To his right is Secre­ tary of State Cyrus Vance; behind him is National Nora Hamerman reports from Security Adviser Zbigniew Brzezinski. Rome on an international seminar 63 'Thank God for the commemorating the efforts of the LaRouche people,' Renaissance which successfully attorneys tell New York 24 FEMA: The Carter legacy lifted Europe out of the Dark jury haunts the Bush Ages. presidency 66 Congress considers curb It is still too early to draw any 40 Mainland China explodes; on civil RICO definitive conclusions about the can the nation be saved? rehabilitation of Jimmy Carter, but 67 Red carpet for Red brass it is already clear that one of the 42 Iran's Rafsanjani is going key legacies of the Carter­ on Capitol Hill to Moscow Trilateral regime is alive and well in the "kinder and gentler" Bush 68 Congressional Closeup White House. 43 Aoun exposes plot to partition Lebanon 70 National News 26 The secret government behind the Federal 44 Dutch government Emergency Management coalition falls Agency 45 Anglo elite woos neutralist 29 FEMA 'handles' Three admiral Mile Island 50 International Intelligence 30 We're reaping fruits of the Carter era

32 The Trilateral's 'Crisis of Correction: Carol White's byline Democracy' was inadvertently left off an article Excerpts from Samuel in the May If issue of EIR, called Huntington's Crisis of Democracy. "Wicca and (he Atlanta child murders," which was written by her on the basis of combined reports. Also, the drawing published on page 40 in that article was misidentified. It was done by an abused New Jersey child. �ITillEconomics

Austerity policy lies behind attack on Speaker Wright

by Harley Schlanger

Those looking for signs as to whether U.S. Speaker of the a technocratic-austerity bent, can he survive by emphasizing House Jim Wright would fight the drive to oust him over the appeals of the traditional, constituency-oriented politi­ alleged "corruption," have been given an answer. In a com­ cian? Will high-priced, heavy-hitting lawyers be enough to bative speech delivered on May 5 in Fort Worth, Texas, counter the erosion in support which is occurring in the face before his friends and constituents to commemorate Law of daily leaks from the spe�ial counsel to the press, which Day, the Texas Democrat defined both the legal issues and gleefully is trying the case of Wright on the evening news the broader policy issues involved in his case. and on the front pages? In this speech, Wright identified the unique guarantees With the pundits now predicting less than a 50-50 chance that the U.S. Constitution provides each citizen, as we live of survival for Wright, it is time for him to expose the "hidden under a "government of laws and not of men" (see box). agenda" of his opponents. These inclu�e a right to a fair hearing, which Wright has not yet received, either from the Congress or from the press. Atlanta and the hidden agenda However, rather than dwell on this point, as he had previ­ The Trilateral Commission's project to put Jimmy Carter, ously, Wright articulated a policy direction for the country, a technocrat from the "New South" centered in Atlanta, in one which goes counter to the prevailing "wisdom" of the the White House, coincided with the final decline of the technocrats who call for savage budget cuts and austerity. power of the traditional southern Democrats in Congress­ "We need to rebuild America," he said, "and rehabilitate those who came to Washington with the New Deal, who its basic public infrastructure. We need to invest in the mod­ were committed to infrastructure development (now deni­ ernization of American industry and the education of the grated as "pork barrels") and a strong defense for the nation. skilled American work force. We need to push forward and They used federal funds todevelop the South, centered around stay ahead of the curve in the application of new research and military bases, ports, and defense production based on de­ new technology to our nation's commercial advantage." veloping new technologies; they also backed improvements Next, on May 10, in Washington, his legal team launched in the transportation grid (such as the highway system under an aggressive counterattack, tearing into the methods em­ the Eisenhower administration, and air transport centers in ployed against Wright by special counsel Richard Phelan and Atlanta, Memphis, Dallas, and Houston), utilities to provide the House Committee on Standards. His lawyers fileda series cheap energy, and water projects. of motions, beginning with a challenge of the relationship In the House, Speaker Sam Rayburn of Texas was the between Phelan, acting as a prosecutor, and the Committee, leader of this faction. Among his key allies and proteges were which is serving as both judge and jury. They argued that it Carl Vinson of Georgia, Hale Boggs, F. Edward Hebert, and violates basic rights for the prosecutor to have access to the Otto Passman of Louisiana, Mendel Rivers of South Caroli­ jury, without the presence of the defense counsel. They also na, and from Texas, Wright Patman, Olin Teague, Henry challenged the method of the investigation, the alleged facts Gonzalez, Jim Wright, and Jack Brooks. In addition to their compiled to make the case against Wright, and the interpre­ commitment to technological progress, these congressmen tation of those facts. shared a suspicion of the Eastern Establishment and were Yet, given that Wright is surrounded by colleagues with fearful that Wall Street and �e bankers of Lower Manhattan

4 Economics EIR May 19, 1989 had too much control over the nation's financial institutions, such as the Treasury Department and the Federal Reserve. They often attacked this concentration of financial power, Wright on law and ethics with Wright Patman leading the charge. To rein in the power of the New York crowd, they favored "In one particular way America has been different from giving the federal government regulatory powers to vigor­ other countries. Unlike the British from whom we ously guard against the abuse of power. Patman outlined this sprang, we did not create an aristocracy and endow it outlook in a speech in 1936: "It is one of the first duties of with responsibilities to look after the rest of us. Our governmentto protect the weak against the strong. . . . I am revolution, our Constitution, and our history devel­ convinced that there is a conspiracy among a few rich, pow­ oped in a more egalitarian way. erful individuals who control corporations of great wealth to "And unlike the French and Russian revolutions, obtain a monopoly in retail distribution. It is a group that is we didn't set out to supplant the aristocracy with a naturally greedy and selfish. Big bankers in New York are dictatorship of the proletariat, reducing everyone to the substantially aiding them in carrying out their purposes." lowest common denominator. With the exception of Wright, Brooks, and Gonzalez, "Ours has been a decidedly different goal-to ex­ this faction of southern Democrats has been replaced. The pand the aristocracy through universal opportunity and new, emerging leaders include environmental kooks, such as absolute equality before the law .... In all of this, Sen. Wyche Folwer from Georgia; phony pro-defense tech­ we've wanted the humblest personto enjoy the dignity nocrats such as Senators Sam Nunn of Georgia and Charles of basic human rights and to participate freely in the Robb of Virginia; and a sprinkling of austerity-mongering political process. Republicans such as Newt Gingrich of Georgia, who has "The individual is protected against tyranny or ca­ taken the point against Wright. price. Everyone is presumed innocent unless proven With Carter in the White House, these "New Age" con­ guilty. Government cannot make an ex post fa cto law gressmen proceeded to dismantle the regulatory protections and apply it against you retroactively. which had been imposed in the wake of the Great Depression. "These have been the basic goals of American law. Hand-in-hand with Carter's Federal Reserve chairman Paul Our attainment of these goals, although imperfect, is Volcker, a former employee of David Rockefeller at Chase arguably closer to the mark than any other nation has Manhattan Bank, these congressmen pushed through policies achieved." which have led to the transformation of the United States from an industrial and agricultural powerhouse, to a post­ industrial economy. The regional and local banks which previously had pro­ protect citizens from unreasonable exercise of power by ap­ moted the growth of the nation's medium-sized industries, pointed agents of government." He warned, "I believe I can farms and communities have been targeted for takeover. With see a conscious government policy to concentrate wealth in New York's Citicorp leading the way, the nation's savings fewer and fewer hands. " and loan institutions are being dismantled and, with them, In the eyes of his opponents, Wright is guilty of interfer­ the nation's housing industry. Megabanks are being created, ing with the restructuring of the nation's economy. In special and whole communities and businesses are being cut off from counsel Phelan's initial report to the Standards Committee access to credit. on Wright, he included numerous charges against Wright for interference with banking regulatory . agencies. He went so Wright and the S&Ls far as to say that Wright's expression of concern over the Speaker Wright was clearly concerned by these devel­ effects of banking deregulation on his constituents involved opments, especially since Texas banks and S&Ls were among appearance of "conflict of interest," and questions he raised those hardest hit by the phony Reagan Recovery and dereg­ to FHLBB officials constituted "blackmail." ulation. He intervened, attempting to gain "forbearance" for Wright is a victim of the pattern of prosecutorial abuse delinquent borrowers; he asked that the Federal Home Loan directed at those who represent the tradition of constituent­ Bank Board (FHLBB) not "encourage lending institutions to based representation. This pattern includes attacks on labor adopt arbitrarypolicies that force homeowners to vacate their under the racketeering or RICO laws, and the threat of its use homes. People who want to earn their own way should not against S&L directors, the watergating of black urban ma­ be forced into bankruptcy." chines, and the "Get LaRouche" task force. These abuses are In a speech given in January 1988, Wright echoed Pat­ the club being used to impose the "hidden agenda" of the man, when he explained his concern with present FHLBB Anglo-American financial establishment. If Wright is to sur­ foreclosure policies: "It's a natural instinct to want to salvage vive as an effective Speaker, capable of fulfilling his self­ something rather than see it tom down and destroyed, to defined tasks, he must publicly take on this hidden agenda.

EIR May 19, 1989 Economics 5 Third World governments, taking a cue from their peo­ ples, are desperately seeking alternatives. Even as [U. S. IMF under Brady: a Treasury Secretary Nicholas} Brady was announcing his plan in Washington, Ministers of Finance from Africawere meet­ plea for reassessment ing in Malawi to develop ec�nomic strategies for structural adjustment of their economies that would not involve the Fund or Fund-type programs. Scores of other governments, by Davison Budhoo although fearful of reprisals from the Fund, have taken steps to establish teams of experts to undertake similar tasks. Latin The author whose commentary we excerpt here is an econo­ American governments have met to try to develop debt strat­ mist who resigned May 18, 1988from the staffof the Inter­ egies demonstrably anathema to the Fund. A think tank of nationaL MonetaryFund, charging that the Fund had "sys­ eminent Third World personalities, operating from Geneva tematically" fa LsifiedstatisticaL indices of debtor nations, in and supported by Third World governments, is coordinating order to impose conditionalities. longer-term research on how to by-pass the present-day Fund system. i The Brady Plan for Third World debt lays down that only But protest is not confined to the developing world. Peo­ those heavily indebted countries prepared to implement ples from developed countries have given added momentum "market-oriented programs of reform" will benefit. And that to the tide, and even sister agencies of the United Nations, all such programs must be prescribed, supervised and jurid­ stunned by Fund realities, have come out in open criticism. ically certified by the International Monetary Fund. This So have hundreds of non-gOlVernmental organizations, and ensures that the same dogma, operational criteria, and meth­ major religions and religious leaders. Last year a judicial ods of approach of the Baker Plan will be extrapolated into tribunal, convened in response to pleas from the American the Brady era. The Fund will continue, with greater clout Association of Jurists and a host of world humanitarian or­ than ever before, to "reform" the Third World in the name of ganizations, indicted the Fund for crimes against humanity. its member governments.... And during the course of, the Fund/World Bank Annual Traditionally it has been accused of foisting on Third Meetings in West Berlin some eight months ago, that city World governments, outrageously inappropriate condition­ became as an armed camp, with over 10,000 federal troops ality for its aid packages, of demonstrating a troubling insen­ reportedly rushed in to control anti-Fund demonstrations that sitivity to Third World needs and realities, and of increasing were judged to be the largest and most voracious there since poverty levels. Within the last year, it has also been indicted, the Berlin Wall was built. by member governments and others, for racism in its inter­ All this cannot continue to be ignored by Mr. Brady. For national operations, abuse of political power by its staff, loss better or worse, he will have: to rethink both his means and of professionalism and objectivity in its economic analyses, his objectives, starting with the institutional and policy im­ incompetence in relation to new tasks that it must perform peratives that he has unilaterally established. At the very under the ongoing debt strategy, high living and excessive least, he would have to put forward meaningfulpropo sals for staff salaries and privileges, the exertion of unwarranted in­ Fund reform outside of the continuous white-washing job fluenceon the World Bank, and unconventional pressures on that Mr. Camdessus, the Fund's managing director, is obliged government officials in Third World capitals to induce them to do. Mr. Brady should start with alleged internal Fund to toe its line against their better judgment. These serious abuses, for perhaps it is in this field that the U. S. Treasury charges, circulated throughout the Third World and raised in has the hardest evidence, and can make the most incisive the Parliaments of several developed and developing coun­ initial impact on currentFund practice. tries, have remained unanswered by the Fund .... Fund reform will be painful . . . but it is absolutely nec­ essary . For governments cannot continue the futile experi­ Growing opposition ment of trying to impose compliance to Fund conditionality But probably even more ominous is a growing Third at gunpoint. Nor can national authorities force people to World mood of revulsion and rebelliousness. One example is participate, via curfews and tear gas and martial law, in the the recent spate of anti-Fund riots and demonstrations in process of national development-a process that demands countries as different as Venezuela and Guyana, Trinidad their participation for its sUQcess. The scenario of nation­ and Tobago and Jordan, Peru and Tanzania, Yugoslavia and states becoming armed camp� to wage war against their own Zambia, Egypt and the Dominican Republic. Over the past citizens may be the ultimate logic of the present-day Fund 90 days, and coinciding in part with announcement of the system, but it will not lead to the sort of structural change, or Brady Plan, anti-Fund riots in the Third World have reached the kind of democracy that Mt. Brady and his countless well­ a pitch, claiming hundreds ofThird World lives, and bringing wishers in the West and elsewbere will understand or wish to injury and imprisonment to thousands more . condone.

6 Economics EIR May 19, 1989 the canal's construction would boost the entire economy of the ASEAN countries, and therefore Singapore's as well. On March 30-31, the delegation traveled to southern Southern Thailand Thailand, where the Engineering Faculty of the University of Songkhla hosted a conference on "The Kra Canal and the goes for the Kra Canal Development of Thailand." Ambassador Konthi Supha­ mongkon and Pakdee Tanapura were invited to address the by Sophie Tanapura conference on "The Impact of the Kra Canal on Security and InternationalRelations" and "The Technical and Engineering Feasibility of the Kra Canal," respectively. There were 120 Plans for the construction of a Kra Canal through the southern participants from all over Thailand, with everyone taking isthmus of Thailand are very much in the spotlight in southern home a copy of the Kra Canal book. The overriding consen­ Thailand and in the nation's parliament. The canal project sus of the conference is that southernThailand , long under­ would link the Andaman Sea on the west with the Gulf of developed and underutilized, requires the Kra Canal as the Thailand on the east, speeding the transit time for ships voy­ pivot of its industrialization. aging from the Indian Ocean to the South China Sea and into The Parliamentary Committee on the Canal, which is the Pacific. And as has been put forward by the Fusion Energy composed mainly of southerners from the Songkhla area, is Foundation (PEF) of Thailand and its allies, the Kra Canal now drafting a final reporton the economic feasibility of the would also become the site for a super-port at the southeastern canal project, which will go to the entire parliament and then port city of Songkla, and a nexus for an entire array of man­ to the government. Although the prime minister is currently ufacturing of semi-finished and finished products. opposed to the project, many in his own Chat Thai party were The new impetus to the project, since its revival by EIR among the earliest supporters of the Kra Canal as a boon to and the Fusion Energy Foundation in 1983, has been the Thailand's economy. publication this year of an entire book on the project, the first authoriative source on the Kra Canal in the Thai language. Outside interference? The book was produced by the "Kra Canal Club" of the Thai Given that the Kra Canal would bOostthe economies and Science Society, which has operated out of the Chulalong­ therefore the political independence of the ASEAN coun­ khorn University and includes Dr. Boonrod of Chulalong­ tries, it has not been a favorite with the larger powers active korn, former ambassador Konthi Suphamongkhon, and the in the area. The postwar treaty with Great Britain, for in­ PEF's Pakdee Tanapura. The book features an appendix of stance, specifically prohibited Thailand from building the excerpts from the speech delivered by American statesman canal. (The treaty has since been abrogated.) But the British Lyndon LaRouche for the canal in 1984. are spreading the line in Thailand that the project site of the At the same time, although Thailand's Prime Minister canal zone should be checked for faults, and warningthat the Gen. Chatichai Choonhavan has twice announced that he geological region cannot sustain canal construction. sees no necessity for the canal project at this juncture, the Despite initial interest of the Japanese Mitsubishi Re­ canal is now the focus of investigation by a special parlia­ search Institute in the Canal project, the Japanese Interna­ mentarycommittee headed by General Anek Boonyathi, for­ tional Cooperation Agency (JICA) has offered to build-free mer commander of the Lopburi Special Forces. of charge-a translift by rail linking the Andaman Sea coast Last March 26, the Thai Parliamentary Commitee on the of Thailand to the coast of the Gulf of Thailand. The translift Kra Canal headed by its chairman, Gen. Anek Boonyathi, system would apprently be able to lift 8-ton ships (fishing former commander of the Lopburi Special Warfare forces vessels) by crane onto the rails. This "landbridge" is to be (parachute commando unit) together with fiveother members built at Suratthani. of the Kra Canal Club of the Science Society of Thailand, The People's Republic of China has also quietly offered among them Pakdee Tanapura, left Pukhet island on a ship a joint venture to build an oil pipelifie called the Transpen­ provided by the Royal Thai Navy to inspect the Straits of insula Project, to cut across the isthmus of Thailand. The Malacca. Mr. Pakdee is the officialadvisor to the parliamen­ P.R.C. 's selling point appears to be thatthrough the project, tary committee. Thailand can benefit from China's technology and cheap On March 28, the ship reached Singapore, where the labor. delegation was welcomed by officials from the Royal Thai As for the United States, Henry Kissinger came to Thai­ Embassy, and where discussions were held with Singaporean land in 1985 and personally declared his animosity to the Kra leaders on the Kra Canal project. Singapore has traditionally Canal project. All such opposition from foreigners, however, opposed the canal project, out of fear that the canal would disguised or not, serves as a backhand message to Thailand draw traffic away from the Strait of Malacca, controlled by of the degree to which the canal would benefitThailand and Singapore. However, many Singaporeans also point out that the other ASEAN countries.

EIR May 19, 1989 Economics 7 Interview: Thomas T. Irvin

The need for modern agriculture: 'You can't move backwards'

Thomas T. Irvin has been the Commissioner of Agriculture and thecrab grass, and the other foreignmaterial out of our of Georgia. an elected office,for 21 years. Irvin has recently corn fields, and we'd dig it out of our cotton fields. And in spoken out on the limits of "organic" fa rming. Irvin was the case of gardens, we found that if we didn't use a little interviewed by Ma rcia Merry on May 10. arsenic, and other chemicals that were available to us even back in those days, then, your potato vines-the bugs would eat them up, and would eat up your beans, and many other EIR: Both farmers and the general public are getting bar­ garden products that we tried to produce in order to have raged by propaganda for what's called "low-input, sustaina­ enough foodto eat. So, even though you relate back to those ble agriculture," and also by scare stories, including from days of "organic farming," we were not totally organic, back . movie stars, about foods made unsafe by chemicals and pes­ 50 years ago. ticides. Irvin: First, let me reiterate the fact that I am thoroughly EIR: As you've pointed out before, the terminology that is convinced that the food that we place on the table today is the in use by the media, and also by many of the agencies that safest food that probably we've ever had since the beginning promote so-called organic gardening or farming, is very ill­ of mankind. Fully realizing that we do live in a chemical definedand fuzzy. society, and we are using chemicals now, I feel that our Irvin: Well, we think, and we believe in truthfulness. If ability to monitor and to regulate the proper use of chemicals you'regoing to promote something, and if you're going to has enabled us to regain any ground that we were able to advertiseto sell something, we have a very, very strong ethics obtain through organic farming. in this department,that it ought to be absolutely truthful. You I just feel that modem science has gi ven us the techniques ought not to allege or to imply anything to that person who is in order to properly use modem chemicals. In Georgia, we going to buy your productthat it's not. We are in regulatory have the theory that the modem tools of agriculture can be agriCUlture, and regulate all the food that's sold in this state, used in a safe and a wholesome manner in order to provide a and we just do not allow even the major companies to put on quality product, and do it in a fashion that we can monitor TV or on radio, or in printed matter, ads that are not abso­ the residues and we can make sure that our levels are fully in lutely truthful. I'll be the first to admit that some of the very line with the levels that are normally set by both the EPA and articulate and verysophisticated New York ad agencies know the U.S. Food and Drug Administration. how to come right up to the line on you. You have difficulty seeing where this is legal and this is illegal. Occasionally, EIR: What is your own personal experience with so-called we've asked and somewhat 4emanded that it be pulled. organic farming? But to go out here and to imply, as we are aware that Irvin: I was bornon a sharecropper farm, in extremely poor some are trying to do now, that you have a product that is conditions. The only agriculture we had back at that time being mass produced today in an organic fashion, is untruth­ could be described under the concept of organic farming. I ful . And we know it cannot be substantiated. They're using still remember those days on our farm , in which we would chemicals to some degree. You just can't do it without it. take all the manure out of the stables and the bam, and load We have no qualms, and we advocate, and we will con­ it on the wagon, which was mule-drawn, and haul it out into tinue to support, efforts to findmore modern ways in which the fields, and throw it, by hand, along in the furrows. We we can reducethe amount of chemicals we use; pest manage­ planted the com in 4-foot rows with 36-inch spacing. And I ment, we've been leaders in that area, and if we can do remember, in addition to that, our attempts to carry on a something from a biological standpoint to rid ourselves of garden operation under somewhat the same methods. pestswithout using use chemicals, we're all for that. But for But even back then, we were not totally organic, because those who would say that I can produce you a product in any we had pests, and when we had pests, we had to deal with great quantity today without �ome of the modem techniques, them. We took the chopping hoe, and we'd dig all the briars we don't think it is possible.

8 Economics EIR May 19, 1989 EIR: What can you tell us about your boll weevil eradication be needed any longer in the production of food and fiber. program? Irvin: We're extremely pleased. I'll give you a little history EIR: In a letter earlier this year to the Atlanta Constitution, about that. I've been commissioner now for 21 years, and you wrote, "We cannot go back to the past in agriculture any here in Georgia this is an elected position. I've served as a more than we can go back to the past in medicine, or in space regional president and a national president of our professional or in transportation or in any other branch of science and organization, so I feel like we have proper credentials to call culture. " ourselves a national leader. And I served on the committee Irvin: We can't move back. We live in a modem society. that first got assistance from the U.S. Department of Agri­ Our standard of living is built around that modem society. culture to initiate the firstboll weevil eradication program. I When I was a kid, we had approximately 50% of our people was convinced that modem science had developed to the involved in some type of agriculture. I'll be the firstto admit, point that we could eradicate a pest that once had been one of all of them were not fully involved in total commitment to our major obstacles to a major crop in the South. And I was agriculture, but there was some type of food production tied aware of how the thing was going to be implemented, starting to 50% of our people. We're down now to where the vast up in Virginia and North Carolina, moving down into South majority of our food is probably being produced by 1 %; 3% Carolina, and in through Georgia, and the panhandle of Flor­ would nearly cover the total involvement. And that tells you ida, and down to Alabama. And we have it that far, and it's that we're geared up in America today to live a different going to go on west. I think it's going to be a great break­ lifestyle than we were 50,60, and 70 years ago. And I don't through. believe that there is anybody out there that is advocating that We anticipate that once we've completed this job of erad­ we return to the ancient ages. icating the boll weevil, we can reduce the total tonnage of pesticides that is being used in our environment by up to one­ EIR: On the issue of guaranteeing the food supply. . . . third. I think we feel pretty safe with those projections. That's Irvin: Not only do we feed ourselves, but we have input to a lot, when you consider how vast agriculture is here in the the food needs of nearly one-fourth of the world's population. South; that's a tremendous amount of chemicals that will not We may not provide their total diet, but we sell food all over

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EIR May 19, 1989 Economics 9 the world. We supplement the food needs to nations that do not have the capacity to produce for themselves. Currency Rates When we first started talking about selling grain to the Russians, it was quite a hot issue here. And I know there was The dollar in deutschemarks a certain amount of pressure against me to speak out on that New York late afternoon fixing issue. But I spoke out, and I said, well, I'm for making our surplus products available to him who has the resources to 1.90 - buy. And furthermore, if our enemies-that being the Rus­ � -- .. -'"'"""'" sians-were to grow dependent on us for food, I just didn't 1.80 see any possibility of a nation that would depend on us to help feed their people ever declaring war on us. I thought it 1.70 was a peace-making issue. Kind of going in the back door. 1.60

EIR: On the issue of low-input "sustainable" agriculture: 1.50 You have mentioned before the nutrients per acre that you 3122 3129 415 4112 4119 4126 513 5110 can calculate plants need, a certain amount of tonnage per acre of nutrients. If you cut back on that, you are going to cut The dollar in yen back on food output. New York late afternoon fixing Irvin: You see, I'm not an agronomist, I'm not a scientist, I'm just a layman. But we can continue to do massive re­ 156 search-which I'm a strong supporter of-for ways in which 140 we can do the job even better. You know, when I was a kid, 8, 10, 12 bushels of com peracre was a bumper crop. I used 130 �Iot.. to be a school board member, and I'm a past president of the

Georgia School Board Association, and had close ties to the 120 Future Farmers of Americaand 4-H, a lot of our youthgroups. I can still remember when we first started trying to get a 100 110 bushels of com per acre, then 150, then 200bushels per acre, 3/22 3129 4/5 4112 4119 4126 513 5110 and then 250. And scientists tell me today that it's within our The British pound in dollars reach to produce 500 bushels of com per acre. But I'm not New York late afternoon fixing naive. Today, it may not be the most efficientway to produce that major crop by trying to extract out of the soil the maxi­ 1.90 mum. There may be a plateau, that you can put so much nutrients into the soil, and get so much production, to have 1.80 sufficient product to fulfill the marketplace and ultimately make it more profitable to the farmers. I'd like to see us to 1.70 ...... - - - continue to promote that theory. That's what we call a bal­ anced input versus a cost benefit. 1.60

1.50 EIR: The farm effort during World War IIshows that we 3122 3129 415 4112 4119 4126 513 5110 can set production records if we have to. Irvin: We can do it again, if need be. But by the same token, The dollar in Swiss francs let's don't shoot ourselves in the foot by going backward. New York late afternoon fixing Let's use some of that modem technology to find a more efficient way to do it when we've got the time. We've got the 1.70 time frame . There 's no pressure on us now. Let's go out and � ,.,- � �- 1.60 V- � use that modem technology to produce with less input, with V" hopefully less input. 1.50

EIR: With modem technology. If we put the Shuttle back 1.40 up into space, I'm sure we can find a way to deal with these things on Earth. 1.30 , Irvin: We can. We just have to keep our eye on the big 3/22 3129 415 4112 4119 4/26 513 5110 picture.

10 Economics EIR May 19, 1989 Agriculture by Marcia Merry

The 'continued recovery' disaster because of the combined ef­ Secretary Yeutter makes op timistic pronouncements, while fects of the drought, arid years of low prices and high debt service rates. drought and fa rm financedisasters threaten the fo od supply . North Dakota Sen. Kent Conrad (D) has held two hearings this month at which testimony was given on the On May 10, Agriculture Secretary In Montana, over 90% of the win­ forced dispossessions against farmers Clayton Yeutter made his official bow ter wheat is lost. Farmers have scram­ by the USDA/Farmers Home Admin­ to Congress in the opening scenes of bled to put in spring-planted small istration, the FartnCredit System, and the debate on the new 1990 five-year grains, but the chances of a decent others under the Agriculture Credit Act farm bill. To a packed hearing of the crop are poor, because of the contin­ of 1987. House Agriculture Committee, he ued dryness. But in Yeutter's view, expressed presented a slick talk praising the "re­ Although not the focus of the May May 10, "The recovery is also reflect­ covery" in agriculture, and offering 11 wheat harvest report, the prospects ed in better financial conditions for "my views on future farm policy that for other major grains this summer are farm lenders. Prospects for the Farm will sustain agriculture's recovery. " also grim. According to the latest 90- Credit System have improved. . . . Yeutter said, "Much of the turn­ day government weather forecast, the Most commercialfarm lenders report­ around seen in U.S. agriculture in re­ cornbelt might be hit by a lack of rain ed stronger loan portfolios in 1988 with cent years has been due to sustained for its summer growing season. declines in the number of delinquent economic growth at home and abroad. Already, the National Guard has accounts, write�offs , and foreclo­ Overall, prospects for the U.S. and been aiding farmers in southern Iowa sures. " world economies favor continued re­ to get water for their livestock and While misrepresenting the present covery for agriculture." He forecast a farmsteads. The subsoil moisture is farm situation, Yeutter presented his growth of 3% in the U.S. economy, down to four feet in many areas. views of "Future Farm Policy," by calling it the "seventh straight year of After the drought last summer, the cloaking himself in the mantle of the expansion. " USDA eased up its annual cropland General Agreement on Tariffs and The facts of the condition of U . S. set-aside requirements to 10% of Trade (GAIT) and stressing the issue agriculture could not be more at odds acreage base required to be idle this of keeping farm prices low to compete with Yeutter's views. Emergency ac­ year, down from the 27 .5% required in the world market. tions are needed to avert an unprece­ to be idle for wheat and some other Yeutter called for "enhancing our dented food crisis in-the-making. crops in 1988-which guaranteed dis­ leverage at the negotiating table," in On May 11, the USDA itself re­ aster when the drought hit on top of terms of undercutting our allies in leased its first official estimate of the the set-aside. world trade. 1989 wheat harvest-which will be­ Since January, Yeutter has insist­ "If the Urug,ay Round is success­ gin in southern winter wheat regions ed that a drought two years in a row ful [it ends at the; end of 1990], we will in June-and forecast that the crop would be "unlikely," so therefore, no need to modify the 1990 Farm Bill will be the lowest in 11 years. This emergency measures were needed. accordingly-ptobably sometime means that national wheat stocks, al­ Now reality is proving him wrong, at during 1991. Will we then be writing ready low, will not be replenished, the cost of endangering farms, losing the 1991 Farm Bill in Geneva? To and much less will be available for crops, and losing lives. some degree perhaps, but only if we export. Private crop forecaster John believe it is in, the best interest of One of the hardest hit wheat states Schnittker estimates that food prices American agriculture to do so ....If is Kansas, where over half the crop will be up at least 8 to 10% this year the Geneva negotiations are success­ may be lost due to drought and win­ due to the effects of drought. Interna­ ful , we'll also be writing a segment of terkill. Kansas alone accounts for 18% tionally, millions of people in poor the European Community's 1991 Farm of the national wheat harvest, and nations will be priced out of the food Bill in Geneva; rather than Brussels about 34% of the preferred variety of market, or deliberately prevented from ...and the farm bills of Canada, Bra­ bread wheat. Oklahoma, Colorado, buying by the USDA. zil, Argentina, Australia, and several and other states are affected. Farmers themselves are facing other countries iin Geneva."

EIR May 19, 1989 Economics 11 Banking by Robert L. Baker

Restructuring agricultural credit mortgages. The ownership and serv­ The restructured look of agricultural credit is turning both icing rights of the real estate mort­ gages will go outside the local com­ fa rmland and the fa rm operators into speculative commodities. munity, and fall under the control of the Farmer Mac and Aggie May stock­ holders, most of which arelarge banks and insurance companies, such as C ongress passed one restructuring The regulatoryagency of the Farm Metropolitan Life, Prudential, and act per year, three years in a row, be­ Credit System was reducedfrom a 12- John Hancock. fore it finally passed the Agricultural man boardof farmer-memberborrow­ A recent agriCUltural credit report CreditAct of 1987, which has become ers, elected by other farmer-member by the National Commission on Ag­ the blueprint for concentration of con­ borrowers, to a three-mancommittee, ricultural Finance, which was author­ trol over agricultural finance at the appointed by the President of the ized by the Agricultural Credit Act of level of federal government agencies, United States. 1987, and whose membership in­ in tum controlled by large private A congressional hearing on the cludes, Cooper Evans, President commercial banks and insurance com­ implementation of the Agricultural Bush's agriculture adviser, recom­ panies. Farm credit is no longer to be Credit Act of 1987, chaired on May 9 mended that agriCUltural finance centered in the farm community and by North Dakota Sen. Kent Conrad, should have a more deregulated, "free private hands. brought severe criticism of the way trade"environment. The report states, Paralyzed and near death only two FmHA has implemented the new reg­ "The marketplace alone should deter­ years ago, today's government agri­ ulations. Singled out was the new mine the ultimate flow of capital; re­ cultural credit institutions are flexing computerized credit analysis program strictions on credit flows should be re­ a newly reconstructed body after the called DALR$. Jim Massey, a lawyer moved," and, "Barriers to prevent blood-letting of at least 300,000 farm fromthe Farmers LegalAction Group corporate ownership of farms . . . re­ liquidations since 1980. Both the Farm based in NorthDakota, testified, ''The stricts the flow of credit into agricul­ Credit System (FCS)and the Farmers many deficiencies of the DALR$ pro­ ture," Home Administration (FmHA), the gram is setting FmHA up for massive This report infers that agriculture nation's two largest agricultural lend­ litigation." would be more competitive if policy ers, have been streamlined and cen­ Farmers have repeatedly com­ didn't attempt to "maintain a way of tralized. plained that the DALR$ program, used life" for hard-pressed marginal farm­ At the same time, a rapidly ex­ often enough to deny credit to a bor­ ers. The commission says, "A well­ panding interstate banking group is rower,was incomprehensible to them. managed, family-size farm with debt centralizing commercial bank control Two new secondary markets for service in line with cash flow could through buy-outs. agricultural real estate loans arein the provide a good investment opportu­ Because of the Agricultural Credit processof beingestablished by the new nity to a local retired, or about to re­ Act of 1987, the 12 Farm Credit Dis­ credit act. The Federal Agricultural tire, professional. A group of such tricts of the Farm Credit System were Mortgage Corporation ("Farmer farms may provide an investment op­ reduced to 6 Farm Credit Districts. Mac") provides a mechanism through portunity for local teachers' pension The three branches of each district, the which farmreal estate and rural hous­ programs." Federal Land Bank Associations ing mortgages can be sold by banks, The restructured look of agricul­ (FLB), the Production Credit Associ­ Farm Credit offices, insurance com­ tural credit in the United States, is ations (PCA), and the Bank of Coop­ panies, and others to the "Farmer Mac" turning both farmland and the farm eratives also were consolidated. secondary market. These mortgages operator into a speculative commodi­ ' The 232 FLBs and the 135 PCAs areused as collateral for securities that ty, into which investors can buy at the were merged together into one unit will be sold to investors. Similarly, an lowest price. Agricultural credit poli­ regulated by the Farm Credit Admin­ "Aggie May" will provide a formal cymakers indicate through their own istration, and the 12 Banks of Coop­ secondary market for FmHA loans. report, "The maintenance of viable eratives were allowed to merge into This secondary market network farm units does not imply fullresource one new organization called the Cen­ facilitates a nationwide centralization ownership, and future policies should tral Bank for Cooperatives. of agricultural land and rural home recognize this fact. "

12 Economics EIR May 19, 1989 Report from Rio by Silvia Palacios

IMF rule or democratic elections Such a potential alliance has been If the socialfa bric is ripped up by austerity and terrorism, the known in Brazil for a little more than a year as "the Camarinha effect." In presidential elections will be just a dream. February 1988, Armed Forces Chief of Staff Paulo Roberto Camarinha fo ught against the austerity program. When he was fired, he warned that if austerity continued, there would be Brazil has entered the most critical steel per day , more than 2 million tons social explosions. When that hap­ phase of the "democratic transition" per year-60% of the complex's total pened, Camarinha said, "the troops begun in 1985, when the first civilian output. will not repress the strikers," but would government in 20 years was inaugu­ State intelligence then leaked to be willing to unite with them for iden­ rated. The draconian austerity in­ the press that in April , an attempt to tical demands. creased during the past two years by sabotage one of the nine turbines in Discontent within the Armed the International Monetary Fund (IMF) the Tucuruf Dam, the prime electricity Forces over wages is evident. Rumors and the creditor banks has provoked source for Brazil's northeast, had been are circulating that the general staff, an uncontrollable strike wave involv­ discovered. The story was confirmed which Camarinha once commanded, ing millions of workers . New move­ to the Federal Police last week by the has now calculated that military wages ments erupt daily in protest of the president of Eletronorte , the utility would have to be increasedby 80% to wage-gouging implemented in order which operates the dam. Had the sab­ restore the losses from inflation. An­ to comply with the debt renegotiation otage been successful, it would have other example: On May 4, about 300 agreements . paralyzed the hydroelectric station and policemen and officers in the state of During the first week in May , a left two of Brazil 's poorest states and Mato Grosso do SuI engaged in insu­ new element made the political situa­ a large part of two others completely bordination. They seized the state leg­ tion , already inflamed by the strike without electricity . islature and held it hostage to prevent wave, morevolat ile. Therewas a chain The terrorist actions are not the it from passing a law granting them of well-planned terrorist actions, di­ "natural" sociological result of the cri­ wage increases averaging 30%. The rected mainly against economic infra­ sis, but an intentionally induced ele­ policemen demanded 130%. structure. ment. The authors of the Volta Redon­ At this point, given the total fail­ On May 2, a high-powered bomb da monument bombing deliberately ure of the government's "Summer with a timing device went off near the left behind an Army issue backpack . Plan" economic program, it is already National Steel Company (CSN) com­ The Volta Redonda plant was built by certain that a new round of hyperinfla­ plex in the city of Volta Redonda, not the United States in 1946 as recom­ tion is on its way. It is projected that far south of Rio de Janeiro. It de­ pense for Brazil's help in winning inflation, which:has been at 6- 10% per stroyed a monument to three workers World War II. It remains the flagship month under the "wage-price freeze," who had died in a violent confronta­ of the Brazilian steel industry. As the will soar to 30% per month in August tion between strikers and the Army cornerstone of Brazil's rise as an in­ or September. If that happens, the last November. The monument had dustrial power, it is the pride and joy presidential elections, whose first been inaugurated on May Day by Ig­ of Brazil's nationalists and the mili­ round is scheduled for Oct. 15, will nacio Lula da Silva, presidential can­ tary. assuredly not take place. didate of the Workers Party (PT) . The It seems that one of theob jectives The strike wave, terrorist actions, local steel union is run by leftists from of the bombings was to play off the and generalized discontent make it the PT's labor movement, the Unified Armed Forces against the great mass clear that if the government insists on Workers ' Confederation (CUT). of workers , to disrupt any potential for faithfully applying IMF conditionali­ On May 3, one of the four gas an alliance between these two sectors, ties, it will make it impossible for the generators of the CSN's newest and both of which suffer from wage-goug­ citizens to elect a President-an event most productive blast furnaces ex­ ing and postponement of technologi­ which has not bappened since 1961, ploded. That put the furnace out of cal modernization caused by the IMF's when Janio Quadros was elected Pres­ commission; it produces 7,300 tons of austerity policies. ident and Joao qoulart Vice President.

ElK May 19, 1989 Economics 13 Business Briefs

Trade and reexamine itself, then they will realize Board-which seized a number of MCorp they are at a crossroads. Maybe we can keep banks earlier this year-to honor MCorp's Farmers revolt against them fromliberalizing rice imports." previously filedChapter 11 bankruptcy and to stand iIi line with other creditors in press­ Japan's ruling party ing its claim for MCorp assets. The Federal Reserve has responded by arguing that such a ruling would affect"the Young fanners in about half of Japan's 49 Health Care prefectures have rebelled against the ruling stability of the nation's financial system." Liberal Democratic Party over former Prime The Fed says the basic legal issue to be re­ Minister Noboru Takeshita's trade conces­ HMOs raising rates solved is: Which body of law is more pow­ sions to the United States. They have not in California erful, the lfederal bankruptcy law or federal been calmed by Takeshita's recent resigna­ banking laws? tion. Fed Illiwyerssay that a ruling in MCorp' s California health maintenance organiza­ favor would allow bankrupt bank holding Fannersare vowing to punish the ruling tions (HMOs) are raising rates in the face of party by rejecting its candidates in coming companies to operate beyond the reach of alleged "abuses" of their programs and dra­ regulators. Such a development would jeop­ elections. Some are even trying to create a matic losses. Among them: fanner's party. The fanners have already ardize the "health of the nation's banking • Maxicarelost $5 million last year on system" by encouraging other troubled defeated several LOP candidates in local its contract to cover 11, 000 poor people in elections. holding companies to hide under bankrupt­ Alameda, San Francisco, and Contra Costa cy law, thus pushing the nation's financial The highly organized fann bloc, while counties (all in the San Francisco Bay Area). less than 5% of the population, represents system to'the brink. On Feb. I, Maxicaredropped its Medi-Cal "The Federal Reserve is trying to set this 25% of Japan's voting power, with a 93.5% contract with the state, dumping patients onto turnout rate. The loss of even a portion of up as some titanic collision between the the already-overloaded county health sys­ bankruptcy law and the bank holding com­ those votes couldn't come at a worse time tem. Maxicare, which has 900,000 cus­ for the LOP, wracked by scandal over cam­ pany act,'" said MCorp attorneyO.J. Baker. tomers nationwide, filed for bankrupcy in "That's preposterous." paign contributions that cost Takeshita the March. Asahi Shimbun premiership. An poll re­ • Takecare, the second largest HMO in leased May 9 said of overall voters, that only the Bay Area,lost almost $1 million in 1987. one in four expected to vote for the LOP. Since then, it has required members to use Fanners say the United States provoked only specific phannacies and use generic Asia the fanners' rebellion by pushing Takeshita drugs. to relax import restrictions on a host of ag­ • Kaiser Permanente, with record Economic disasters ricultural products. Many LOP membershad growth and good profits, nonetheless raised promised the fanners that this would never its rates 13% in 1989. loom in China happen. Fannerspoint to Japan's ban on rice • Blue Cross and Blue Shield lost $1.9 imports, expressing fears that it would be billion in 1987 and almost $1 billion in 1988. Communist China's unemployment rate will the next concession to the United States. Other insurers are reportedto be getting out nearly d()uble this year, according to the Starting from the southern island of of the business. May 8 China Daily. Unemployment is offi­ Kyushu, where much of Japan's beef and cially 2�; this year it will rise to at least oranges areproduced, a fanners' rebellion 3.5% as school graduates, demobilized sol­ swept north. diers, farmers seeking factoryjobs , and laid­ "Our demands have been ignored for a off construction workers all look for work long time and the anger came out," says Banking at the same time. Tomoyasu Takeda, a university-educated The slimepaper acknowledged April 17 stock breeder and rice fanner, who is lead­ MCorp files new that a coill disaster is looming and invest­ ing the rebellion in politically important Nii­ ment is desperately needed in Guizhou gata prefecture. "If they don't listen to us, suit against Fed Province; the south's biggest coal producer. the only thing we can do is depart from the Total demand will reach63 million tons by LOP." MCorp, the troubled Texas bank holding 1995, wi� production only reaching 42 mil­ Commentators are even using the old company, has filedyet another suit against lion tons" even "assuming the scheduled in­ fashioned word Ikki, or uprising, which the federal governmentin its continuing le­ vestment is forthcoming. " conjures images of peasants with axes at­ gal battle over the future of the company. In sPite of the acknowledged crisis, tacking feudal lords. The latest suit, filed in federal bankrupt­ however ,: investment in the industry is being "We aren't saying the LOP is all bad," cy court in Houston during the first weekof cut from : 90 million yuan last year to 60 says Takeda. "If we make the LOP listen May, seeks to force the Federal Reserve million yUan this year. Production is thus

14 Economics EIR May 19, 1989 Briefly

expected to decrease. to be wrong, 1 will be the first toadmit it. " • THIRTY! SHERIFF'S deputies Meanwhile, drought is threatening the Fleischmann said he. and Pons would descended on the Stedman family winter crops in North China and badly af­ publish a scientificpaper in the summer giv­ farm near Jameston, North Dakota fecting a power crisis in the south. Ten prov­ ing full details of their experiments, and a without prior ,warningMay 7, shortly inces in the north are faced with severecrop series of conferences on cold fusion are aftera judge $fteda bankruptcy stay. damage, with Liaoning and Jilin the worst planned throughoutthe year, according to a Everything oh the farm was seized. hit. According to the Jilin Provincial news Reuters report. The Stedmans were given no time to service, the "extent and the area of farmland On May 5, scientists at Moscow Uni­ challenge the judge's finding. affectedby the drought have beensomewhat versity announced that they had replicated unprecedented since the founding of the the fusion experiment, and said they could • THE TAIWAN dollar rose to its P.R. C." The reservoirsin the areaare down "assert with confidencethat the nuclear fu­ all-time high against the U.S. dollar, 40% since 1988. sion reaction actually takes place," accord­ after the U.S. Treasury Department Meanwhile, in the south, the two suc­ ing to the New Scientist April 22. Runar told Congress that both Taiwan and cessive years of drought have leftthe water Kuzmin of the solid matter physics labora­ South Korea were manipulating cur­ level in the main hydroelectric stations so tory had published a paper in 1981 showing rency exchange rates. Since the Tai­ low that the stations areexpected to be com­ that cold fusionwas possible, New Scientist wan dollar rose above 30 to the U.S. pletely unusable by the end of May. Yun­ said. The rector of Moscow University, An­ dollar in 1987, some 30% of Tai­ nan's power grid will have a 400 million atoly logunov, said that he has no doubt of wan's handbag manufacturers have kilowatt shortfall in the second quarter. Be­ the correctnessof the experiments conduct­ shut down, and another 30% are ex­ cause of the coal shortage, it is impossible ed there, and that the university is about to pectedto go under this year. to boost the thermal power plant output. embark on an extensive program of funda­ Similar problems exist in all the southern mental research in the area. • 'CHINA is a Bretton Woods suc­ provinces. cess story," wrote Robert Manning in the Wall Street Journal's European edition May 7 . Manning authored the Labor report, "Asian Policy: The New So­ Science viet Challenge in the Pacific," for the Mexican government Twentieth Century Fund last year. He New cold fusion apparently �sn't kidding when he fires bus drivers wrote: "The World Bank played no results reported small role in China's agricultural re­ The governmentof Mexico has responded forms. Chin� officials, in unchart­ In a presentation to the Electrochemical So­ to a strike of 23,000 bus drivers in Mexico ed waters as $ey have moved toward ciety meeting in Los Angeles on May 8, City that began May 3, by announcing that market policies, have benefittedfrom Stanley Pons and Martin Fleischmann, dis­ the city contractwith the bus company, Ruta- IMF/World Bank advice." coverers of the so-called cold fusion effect, 100has beencanceled, and all workersfired. reportedthat they have repeated their exper­ Enrique Jackson, city transport coordi­ • WORLD: SUGAR production iment, and achieved a higher excess energy nator, announced that Ruta-l00was very will fall 3691000 tons short of con­ than before: lO to 50 times the amount of inefficient, and would be replaced by a new sumption dU11ing 1989, according to energy they put in to the experiment. organization. the latest sugar report fromE.D.& F. For years, scientists have believed that The city brought in 1,000 buses from Man, the London Trade house. It cites to obtain fusion energy required tempera­ outlying areas, charging four times the sub­ "a myriad of!imbalances which can ture levels approximating those of the Sun. sidized fare, but was still unable to move all only be correotedover time." The def­ But Pons and Fleischmann announced an commuters. icit in the Far East has taken market experimental effect on March 23, indicating Meanwhile, thousands of striking bus prices to the hj.ghestlevels since 1981. that they had obtained fusionat room tem­ drivers marched together with striking perature. Since then, theexperiment has been teachers through downtown Mexico City, • 24,000 BRITISH farmers have replicated in many parts of the world, with and blocked several major thoroughfares. registered 7 nlillion acres in a scheme a few reportsof negative results, too. The bus drivers struck for a 25% pay raise, under which farmers are offered up The two scientists said that those who the same increase offeredthe teachers(which to £80 per acre if they agree to set had reported negative results had not pub­ they rejected), and reportedly the govern­ aside at least 20% of their eligible lished their results in full. "I accept our tech­ ment's nightmare is that other public work­ arable land for five years, laying it nique may be at fault, but 1 don't accept it's ers will now demand 25% increases. The fallow, puttidg it into woodland, or a at fault for the reasons that have been put harsh action against the bus drivers was thus range of othet non-agricultural uses. forward," Fleischmann said. "If we tum out taken as a threat by other public employees.

EIR May 19, 1989 Economics 15 �TIillScience &: Technology

Cold fusion experiments spark heated debate

MarshaFree man reports on the range qfre actions that the scientific community is experiencing over the continuing developments in 'cold 'fusion.

In recent weeks , the world has been fascinated by the actual covered, it only takes one other experiment producing the experimental results and possibilities of cold fu sion, and by same results as theirs to verify the fact that they have discov­ the acrimonious response of some veteran scientists who ered a new phenomenon. As Dr. Aeischmann has counseled, cannot explain the results of the experiments and are even the researchers who have tried to replicate their experiment counseling their colleagues not to try to do so ! but have failed, must also publish the details of their work , Dr. Martin Aeischmann, one of the two original principal so scientific inquiry can be broadened . investigators along with Dr. Stanley Pons, has reportedly It does not matter how many researchers cannot confirm stated that 60 laboratories and experimenters around the world the results , as there are likely an infinite number of ways the have replicated the famous University of Utah experiment, experiment can be done , different fromthe way Aeischmann which produced 100 times more heat in an electrochemical and Pons did theirs . As long as other confirmingexperiments cell than could be predicted by known chemical reactions. are successfully done, the scientific community will not be The detailed descriptions of some or all of these experi­ able to escape the challenge to develop new scientific theory ments , in addition to results from crash-effort research taking to explain this low-temperature fusion phenomenon. place at government national laboratories, should start to Perhaps one of the most sensible and candid reactions become available in a matter of weeks. Already many coun­ from the stodgy physics community to the puzzling cold tries have reported ongoing scientific work and even prelim­ fusion experiment was that by Joseph Weneser of Brookha­ inary positive results from workon cold fu sion. ven National Laboratory , quoted in the Boston Globe. "I truly According to Dr. Stephen Dean at Fusion Power Asso­ don 't understand how the results could have been produced ciates in Maryland , Energy Secretary Adm . James Watkins by fu sion. But then, there are lots of things I don't under­ has given the Department of Energy laboratories 90 days to stand. " clarify the Utah claims, and has asked Los Alamos National Laboratory to convene an international workshop on cold Low-temperature fusion fu sion in Santa Fe , New Mexico from May 22-25 . One of the clearest presentations to date on the difference In addition , the Department of Energy announced that its between "conventional" high-temperature fu sion and the new Energy Research Advisory Board will establish a panel to cold fu sion results was a discussion by Drs . Aeischmann and conduct an independent review of "the entire research situa­ Pons before the full House Committee on Science, Space, tion." This is the fastest the government's scientific bureauc­ and Technology on April 26. racy has swung into action in this reporter's memory . Describing the background to their research, Pons ex­ Despite all of the heat that is being generated at meetings plained that in 1984, he and Dr. Aeischmann were discussing and in the media, as opposed to the heat from the experiments the problem of high-energy or high-pressure electrochemical themselves, one thing remains clear: though there is no theory phenomena. "We knew that the concentration and behavior from the standard chemistry or physics text books that ade­ of hydrogen which had been placed in two certain metal quately explain what Drs . Aeischmann and Pons have dis- lattices by electrochemical m�ans indicated that if one were

16 Science & Technology EIR May 19, 1989 In hearings before the House Committee on Science, Space, and Technology on April 25 , Dr . Martin Fleischmann (with pen) shows experimental "cold fusion" apparatus to Rep . Marilyn Lloyd of Tennessee.

to try to duplicate these processes by hydrostatic means, or Pons explained that according to accepted theory, this D-D pressure . . . enormous, almost astronomical pressures would fusion would produce either tritium plus a proton plus energy, have to be applied. or helium-3 and a neutron. In their experiment, very, very "This indicated to us the possibility of many new areas of few neutrons were found. They did find evidence of increas­ research such as hydrogen storage or new chemical synthetic ing amounts of tritium in the heavy water solution adjacent methods. The most intriguing implication," Pons continued, to the electrode. The most important and significant product "was the possibility that under such high-energy conditions found in the Fleischmann-Pons experiment is the excess heat, it indeed might be possible to fuse light atomic nuclei-a or the calorimetric data. very unlikely situation, but certainly the science seemed to The scientists reported that the excess heat produced in be there" to imply that. their experiment arises from a process inside the electrode, The scientists then designed and began a simple experi­ not on its surface. Therefore , the quantity of heat depends ment which has been described in this and many other pub­ upon the volume of the electrode, and not the surface area. lications. Inside the palladium electrode of the apparatus, This is important in designing a scaled-up apparatus to do atoms of heavy hydrogen, or deuterium, concentrate as they further testing of the phenomenon. are separated out from the heavy water. Pons posits that what The heat is generated indefinitely until the .cell is turned is formed is a low-temperature plasma, or mixture of positive off, Pons reported, and "it is a constant excess heat under the deuterium ions and negative electrons. conditions measured here ....If we try to explain the mag­ He explained that according to the measurements they nitude of the heat by the conventional deuterium-deuterium took at the University of Utah, the difference in the chemical reaction, we find that we have \09 times more energy from potential inside and outside the palladium metal lattice was these thermal measurements than that represented from this about 0.8 volts. "While this is not a very large voltage, if you neutron and the tritium we observe. think in terms of a battery, for instance, " Pons stated, "it "So, apparently there is another nuclear reaction or an­ has very strong implications if we think what we would have other branch to the D-D fusion reaction that heretofore has to do to recreate the same situation in a chemical sense. not been considered," Pons summarized, "and it is that [that] "If indeed you were to try to obtain that same voltage by we propose is indeed the mechanism of the excess heat gen­ the compression of hydrogen gas to get that same chemical eration." potential of 0.8 volts, you would have to exert a hydrostatic pressure of a billion billion billion atmospheres-tremen­ Compared to high-temperature fusion dously high pressure." As Dr. Fleischmann explained to the House committee, But the Fleischmann-Pons experiments have not pro­ in conventional fu sion research, there has always been a duced the products of known fusion reactions. How do they series of parameters that had to be reached in order for energy explain this? breakeven to take place, in terms of theoretical prediction. The scientists think they may have a variety of deuterium­ This is the point at which there is net energy produced from deuterium fusion inside the palladium electrode. Deuterium the fu sion reaction, subtracting the energy input required to (D) is a hydrogen atom (one proton) with one neutron. Dr. get the reaction going.

EIR May 19, 1989 Science & Technology 17 This parameter is a product of the density of the plasma long time. They require monthsI and not days to carry out," fuel, times the amount of time it is confined in a small area, he said. so the fusion reactions can occur. Dr. Pons announced at the hearing that 19 new experi­ In high-temperature fusion, the objective, Aeischmann ments on their cold fusion approach are being set up. COne stated, is to raise the energy of the particles in the plasma to of those is a demonstration of a previously runexperiment, the order of 10 to 100 kilo electron-volts, or at least 100 for Los Alamos National Lab(>ratory." The Los Alamos sci­ million degrees Centigrade. "Our experiment is really radi­ entists, "will come up [to U�] , make the meaSUtytnents cally different from that," Aeischmann explained. they want to make on our own'system, bring their electroehe­ "First of all, the energy scale is not measured in kilo mists, and ... go through our method of measuring the electron-volts," he stated, but in single electron-volts. The thermal output. And when they are satisfied with what they regime of one electron-volt is "the province of the chemist," see, then they will take that ¢xperiment away" to Los Ala­ he said. The characteristic temperature is about 10,000°, mos. which is considered high-energy chemistry. Dr. Pons described the new science that may come to What makes up for this low temperature, the scientists explain their experimental results as a "gray area between believe, is the astronomical confinement parameter, or the chemistry and physics." But he also warned that caution amount of time the hydrogen ions are held close to each other should be taken, and that "theories must be used to explain in the palladium lattice, according to the way they explain it. experimental data, not to criticize experimental data," and In their cold fusion experiment, this "confinement time" is a that scientists should not be saying "your data must be wrong billion billion times greater than that of a high-temperature because the theory doesn't predict that." plasma, because the deuterium ions continue to accumulate The Aeischmann-Pons experiment certainly does throw and are apparently trapped inside the electrode, and are not down the gauntlet to the scientific community. Serious sci- · charging off in different directions, as they do in high-tem­ entists are trying to do experiments, and think about how perature fusion. such an unexplained result can be explained. Unfortunately, Dr. Aeischmann warned the committee members that it the science mafia in the media and prestigious institutions, is a difficult matter to quantify all of these parameters and such as the American Institute of Physics, are not rising to products at this early stage. "These experiments take quite a the occasion.

A similar fallacy of composition has been perpetrated by Dr. Steven E. Koonin and others at the California Institute of Technology, such as Nathan Lewis, who have been ringleaders of the line that "cold fusion can't work." Not science, subterfuge This group has insisted that only "experimental errors" could account for the cold fusionre sults. No literate person would be surprised to find out that the The Times has led their coverage with editorials such New York Times and other major national press are pre­ as, "The Utah Fusion Circus," and actually said, "As for senting one-sided, negative reporting on the experimental the University of Utah, it may now claim credit for the results in cold fusion. Over the decades of this century, artificial-hearthorror show andthe cold-fusion circus, two the Times, in particular, has editorialized against the de­ milestones at least in the history of entertainment, if not velopment of electricity and airplanes, and against going of science." to the Moon or building the Space Shuttle. In response to the lynch-mob atmosphere that was On Saturday, April 29 , Times reporter Malcolm created at the spring meeting of the American Physical Browne reported that scientists at New York's Brookha­ Society in Baltimore at the beginning of May, Dr. James ven National Laboratory and at Yale University "failed to Brophy, director of research at the University of Utah, confirm the findings" of the Aeischmann-Pons experi­ responded, "It is difficult to believe that afterfive years of ment. The "evidence" cited: The scientists surrounded experiments, Dr. Pons and Dr. Aeischmann could have four electrolytic cells they had built with six neutron de­ made some of the errors I've heard have been alleged at tectors , but could "see no neutrons." The Times gladly the APS meeting." omits the fact that Aeischmann and Pons did not findthe It is clearly easier to blame new and currently inex­ production of neutrons that would be theoretically pre­ plicable results on "errors" than to do the serious work, dicted from fusion either, which is one of the results that over a period of months if necessary, to discover what this has made their experiment so intriguing. new phenomenon might indeed be.

18 Science & Technology EIR May 19, 1989 Idaho National Engineering Lab: forty years of nuclear research

by Matjorie Mazel Hecht

Forty years ago, on May 18, 1949, the U.S. Atomic Energy INEL's Naval Reactors Facility also developed a prot�­ Commission began operations in Idaho Falls to set up the type propulsion system for surface ships, the AI W, pioneer­ national laboratory that became known as Idaho National ing the use of two reactors to power one turbine. This is a Engineering Laboratory or INEL. Later that month, con­ dual pressurized water reactor plant built within a steel hull. struction began on the lab's first major facility, the Experi­ Both the aircraftcarrier USS Enterprise and the missile cruis­ mental Breeder Reactor I or EBR-1. It was this reactor that er USS Long Beach used A I W-type systems, and a later on Dec. 20, 1951, became the first in the world to produce model AIW is used on the newer aircraft carriers, the USS electricity . Two years later, in June 1953, the EBR-I dem­ Nimitz. the USS Eisenhower. and the USS Vinson . Many onstrated the principle of breeding-that a nuclear reactor naval officersand enlisted men get their training at the INEL can produce more fuel than it consumes. In the Atoms for site. Peace days, this was one of the main goals of the still-young Today, the Nautilus prototype plant still operates as a test nuclear community: to provide a clean, efficient source of energy whose fuel would be self-perpetuating, providing en­ ergy and producing more fuel at the same time. Since then both the EBR-I as well as the other facilities at the Idaho National Engineering Lab have accomplished many other "firsts." The 40th anniversary of the laboratory is a perfect occasion to recount the story of some of these firsts and remind Americans that this nation pioneered the frontiers of nuclear technology and could do it again-pro­ vided the political will is there. INEL, like the other national laboratories, is adminis­ tered by the Department of Energy , the successor to the Atomic Energy Commission. It has three major operating contractors: EG&G Idaho, Westinghouse Idaho Nuclear Company, and Rockwell-INEL. In addition, Westinghouse Electric Corporation operates the Naval Reactors Facility at the lab, and Argonne National Laboratory West operates the Experimental Breeder Reactor. About 10,000 workers are employed at the lab.

Birthplace of the Nuclear Navy Some of the best known facilities at INEL are the naval reactor prototypes, and it was here that the Nuclear Navy was born. The Submarine Thermal Reactor achieved its first suc­ cessful power run on May 31, 1953 in the USS Nautilus prototype. Next came a simulated nonstop voyage of the Nautilus prototype, submerged and at full power, from New­ foundland to Ireland. It was this "trip" that proved that nucle­ The Experimental Breeder Reactor-II. which replaced the EBR-I, ar propulsion of submarines was feasible and that such sub­ started up in 1961 . Today it is the key U.S. facility for advanced marines would be able to subnavigate the polar cap, from the reactor concepts with a fast breeder reactor. It has also produced Pacificto the Atlantic. almost 2 million megawatt-hours of electricity for INEL 's use .

EIR May 19, 1989 Science & Technology 19 bed for advanced design equipment for new nuclear projects, located in Illinois) operates several test reactors and research but it will begin decommission operations this year. The programs at INEL, including the Experimental Breeder Re­ latest model of the AlW uses two different kinds of reactor actor-II; the Transient Reactor Test Facility , the Zero Power designs that operate independently to power one ship propel­ Physics Reactor, and the Hot Fuel Examination Facility. ler shaft. The Experimental Breeder Reactor-I became a Regis­ Other naval facilities include the S5G pressurized water tered National Historic Landmark in 1966 and is open every reactor, which can operate using natural circulation cooling day for public tours. Its successor, the EBR-II, is a pool-type flow, instead of pumps, and the Expended Core Facility, sodium-cooled breeder reactor that produces 19 megawatts which prepares the used reactor cores for reprocessing of the of power. After the first demonstrations of operation with spent fuel. reprocessing on site, the EBR-II switched after 1969 to irra­ INEL was also the site in the 1950s for work on the first diation testing of fuels and materials for larger breeder reac­ prototype nuclear power plant for aircraft propulsion. This tors. Its core can accommodate up to 65 experimental fuel was called the Aircraft Nuclear Propulsion Project and was subassemblies and it is frequently used to test fuel assemblies geared to produce a nuclear-powered engine that would keep for fusion and space reactor programs. an airplane going for very long periods. A presidential order One of Argonne's new projects is the Integral Fast Re­ canceled this program in 1961, however, before any reactor actor, which uses metallic fuel instead of the usual ceramic was flight tested on an actual plane. fuel. The advantage of metallic fuel is that it can be repro­ cessed in what's called a melt-refining system that is much Test reactors simpler than the current chemical reprocessing. Because it INEL boasts the world's largest test reactor, the Ad­ can be done right on the reactor site, no transportation of vanced Test Reactor, which began operating in 1969. Its radioactive spent fuel is necessary. And because the fuel mission is to study the effects of radiation on materials, remains highly radioactive at all times, Argonne argues that simulating a reactor test environment. Because it produces it is a system safe from thieves who want to steal nuclear such a high neutron flux, the Advanced Test Reactor can materials for weapons production. The EBR-II is now con­ determine the effect on materials in a relatively short time­ ducting tests on the special fuel, a metallic uranium-pluton­ weeks and months-compared to the years it would take to ium-zirconium alloy. The next step, if these tests go well, is accumulate such results on regular working reactors . to build a prototype Integral Fast Reactor-a sodium-cooled, Argonne West (the main Argonne National Laboratory is liquid metal breeder.

The Transient Reactor Test Facility, op erated by Argonne West, is a uranium-oxide1ueled, graphite-moderated, air-cooled reactor -with the purpose of simulaiing accident conditions that lead to fu el damage.

20 Science & Technology EIR May 19, 1989 Argonne West's Zero Power Physics Reactor is a national fa cility designed to test the physics properties of advanced fa st-spectrum reactors, including large breeder reactors and sp ace reactors . The test reactors are assembled in a matrix that is at the center of a 50- fo ot-diameter concrete cylinder buried under a mound of earth, a construction similar to that used to test weapons. Although the power level may be only one-millionth of the particular reactor design being tested, the physics properties-such as the critical mass of the fu el or the effectiveness of the control rods-are almost the same as those in the reactor design being tested.

A fuel-recovery corridor in the Idaho Chemical Processing Plant in 1964.

EIR May 19, 1989 Science & Technology 21 Nuclear safety research fuel safety. When the Three Mile Island accident occurred in 1979, immediately after the Three Mile Island accident, the INEL had operating facilities that were able to simulate the Semi scale system had new instruments installed so that it TMI situation and evaluate the extent of the damage to the could approximate the configuration of TMI and help in ana­ reactor core. Set up in the late 1960s to conduct safety re­ lyzing that situation. Among other things, INEL was in­ search were the Semiscale facility, the Loss of Fluid Test volved in designing equipment to retrieve the TMI core ma­ reactor, and the Power Burst Facility. terial and to transport the core debris. About 70% of the TMI The Semi scale used electrically heated rods to simulate a damaged core is now at INEL for evaluation, stored under reactor core's behavior when there was a break in the sys­ water. tem's piping. The Loss of Fluid Test reactor, as the name implied, could simulate several differentaccidents that might Fuel reprocessing occurin civilian nuclear plants, including the worst possible One of INEL' s initial missions was to recover the usable type of loss of coolant accident-a big break in the reactor's uranium from the spent fuel rods of government nuclear main coolant pipe. The 38th and final test on this reactor was plants, both experimental plants and power reactors, and it a core meltdown conducted in July 1985. was the firstfac ility to do this. Once separated out from the The Power Burst Facility was designed to examine what spent fuel rods, this uranium can be reprocessed and used to happens when fuel rods burst, and its initial mission was to make new fuel elements. As INEL proudly notes, over the conduct 40 experiments that would provide data on nuclear past 36 years, the Idaho Chemical Processing Plant (lCPP) has recovered about 24,000kilograms of fissionable uranium (uranium-235) from this nuclear "waste," worth more than $ 1 billion at current prices. The ICPP began in 1953 as a demonstration project, designed to last only five years. However, with several "fa­ celifts," the plant has operated for 36 years. Now, with a workforce of 1 ,500, the ICPP recovers uranium, separating out other radioactive waste products. The facility also re­ covers rare gases like krypton-85, which is valuable for in­ dustry. One of the non-nuclear uses of krypton, for example, is to detect small defects in electronics equipment. Although the basic process has remained the same, a major advance in fuel recovery was the 1984 opening of a facility called FAST (for F1uorinal Dissolution Process and Fuel Storage Facility), which uses remote maintenance, in­ stead of the direct maintenance provided in the original de­ sign of the ICPP. Now, instead of periodically shutting down the facility for maintenance, equipment can be replaced using remote handling, thus reducing the downtime of the facili­ ty-and reducing the worker exposure to radiation. Another first at ICPP was the use of a new fluidized-bed technology to convert the huge amounts of liquid waste re­ maining after the recovery of fissionable fuel. This involves the use of calcining to tum the liquid waste into a granular solid that is more stable than liquid waste and takes up only . one-eighth the volume of the liquid waste. The New Waste Calcining Facility is the only one operating in the world. Radioactive chemical analysis for all the facilities of the ICPP are carried out at the Remote Analytical Laboratory, which is designed to work with highly radioactive samples. The laboratory is built around a 50 x 20 foot "hot cell," to which samples are delivered from other parts of the ICPP by a pneumatic transfer system like those in drive-up bank win­ dows. The samples travel at speeds up to 50 feet a second to Solid waste storage bins under construction at the Jepp in 1970 . the hot cell, so that analytical results can be achieved rapidly.

22 Science & Technology EIR May 19, 1989 Technicians at the Remote Analytical Laboratory use "master-slave" manipulators to remotely handle radioactive samples in the hot cell. The leaded glass windows are oil-filled and 30 inches thick. The cell itselfhas threejoot concrete walls .

Special isotope separation vironmentalist pressures and the need for repairs, the devel­ Looking to the future, the big new project on the INEL opment of the A VUS system became more urgent. As Adm. agenda is the construction of the Special Isotope Separation James Watkins, head of the Department of Energy, said in project in the 199Os, which will involve many new technol­ his March 17 report to Congress on the SIS, "It could possibly ogies for the lab. The SIS will use a new advanced laser be the nation's only such source of material prior to full process toproduce plutonium for the U.S. defense use. Called implementation of the New Production Reactor" (the govern­ AVUS, for atomic vapor isotope separation, this process ment's new conventional defense production reactor) . uses high-energy lasers to refine otherwise unusable stocks Start-up for the SIS is scheduled for 1995, and the final of fuel-grade plutonium into weapons-grade plutonium. Environmental Impact Statement was issued in December First, the plutonium is vaporized. Then lasers are used to 1988 and approved Jan. 19, 1989. However, the environ­ ionize the undesirable plutonium isotopes and send them to mentalist groups who are concerned with forcing the United charged collector plates. The remaining plutonium-239 is States to institute unilateral disarmament have just filed a suit then recovered and processed for weapons use. to stop construction of the plant. Led by the Natural Re­ The A VUS technology has been under development at sources Defense Council and two other regional groups, the the Lawrence Livermore National Laboratory for the past 12 suit alleges that the Department of Energy did not give enough years, but it has proceeded at a slow pace because of lack of consideration to "alternatives," chief among which is not funding and the Reagan administration philosophy of "pri­ building the plant. vatizing" technology development. Lawrence Livermore has In addition to the SIS, INEL is also being considered for a full-scale development facility under construction that will the development of the Modular High Temperature Gas test all aspects of the SIS and train its staff. Cooled Reactor, which is one of two new designs for a de­ As defense production facilities were shut down by en- fense production reactor.

EIR May 19, 1989 Science & Technology 23 TIillFeature

FEMA: The Carter legacy haunts the Bush presidency

by an EIR Investigative Team

The picture was worth a thousand words. Running four columns across the top of the front page of the Washington Post of May 10: President George Bush and Vice President Dan Quayle staring respectfully at their honored White House guest, just returned from a special overseas assignment-ex-President Jimmy Carter. For the millions of Americans who still recall the horrors of the four years of Carter-Mondale and who came to vividly associate those disaster years with the Trilateral Commission, the symbolism of the picture could not have been more chilling. George Bush, the one-time Trilateralist, born-againconservat ive, hold­ ing court with the man who did even more than Henry A. Kissinger to destroy the United States as a world power. In fact, the early warning signs of a Bush-Carter modus vivendi had been presented last month in a series by syndicated columnists Evans and Novak and by Washington Post writer Jim Hoagland, in which they proposed that President Bush preferred former Carter National Security Adviser Zbigniew Brzezinski's version of a superpower "New Yalta" to the version of the more visible Henry Kissinger. While it is still too early to draw any definitive conclusions about the rehabili­ tation of Jimmy Carter, it is already clear that one of the key legacies ofthe Carter­ Trilateral regime is alive and well under the "kinder and gentler" Bush White House. That legacy is the "crisis of democracy," a Trilateral buzzword that was used during both the Carter and Reagan presidencies to put into place a crisis­ management, government-by-degree structure-to be unveiled at the moment a crisis explodes. In the mid- 1970s, Zbigniew Brzezinski spelled out his dream of a technocratic corporatist state drawing upon all of the resources of the "computer revolution," cybernetics, etc. to impose a dictatorship. He called it the "technetronic revolu­ tion." Borrowing a leaf from the New Age liturgy, Brzezinski proclaimed that the world was "between two ages" and that the emerging order would be dominated

24 Feature EIR May 19, 1989 A U.S. Army civil defense command post. Many who supported the creation of FEMA saw it as reviving legitimate civil defense and other emergency planning needs, but its Trilateral Commission creators always had in mind an end to democratic fo rms of American government.

by "information" rather than industrial production. assembled to draft and then test out the effectiveness of the Fellow Trilateraloid Samuel P. Huntington of Harvard new structure. A few media accounts at the time provided an University, under Brzezinski's tutelage, first at the Trilateral inkling of what was going on. A full-scale war game testing Commission and later on the staff of the National Security the crisis response apparatus was conducted in 1984 under Council, put his blueprint for crisis-management government the code name REX 84 Bravo. However, it was not until into place in 1979, with the creation of the Federal Emergen­ 1987 that any news outlet even took note of the event. Even cy Management Agency (FEMA). Ostensibly a reaction to then, the coverage was heavily weighted to the fact that Lt. the abysmal state of U.S. civil defense, FEMA was in reality Col. Oliver North, already an Iran-Contra celebrity, had been the seed-crystal for an ambitious and unconstitutional parallel one of the architects of the FEMA upgrading. The Trilateral government-within the government-that would take roots of the emergency-rule scheme were lost on most. charge in moments of "national emergency." The very drab­ FEMA is now the action arm of the National Security ness of the FEMA structure was seen as the perfect cover. Council, reporting directly to the President and the Vice Interviews by EIR investigators revealed that during the President. A private FEMA Advisory Board (FAB), domi­ Reagan era, FEMA was initially viewed by some of the nated by members of the New York Council on Foreign President's Californialoyalis ts, such as Ed Meese and Judge Relations, is the consulting arm of the National Security William Clark, as a possible safe home for White House Adviser and FEMA boss. special projects and intelligence activities that the Reagan­ Over 1,000draft Executive Orders and National Security auts did not wish to run through the permanent bureaucracy. Decision Directives are sitting in the President's office, mere­ This naive effort was quickly crushed, and FEMA was set ly awaiting signature-at the moment a crisis eruptsto trigger back on its originally conceived path toward a police state. the "continuity of government" dictatorship. No such crisis By the closing months of the Reagan presidency, a new has yet occurred. With the exception of localized "disasters" series of Executive Orders and National Security Decision like the Alaska oil spill or last year's floods in the American Directives were signed, that further amplified and stream­ South, FEMA remains in the wings. However, with an array lined the emergency management structure. In his first days of domestic and global crises clearlyon the horizon, it is safe in office, President Bush signed a National Security Decision to assume that it is only a matter of time before the emergency Directive that even further tightened the grip of this govern­ powers are invoked. ment within a government. With the specter of Carter and Brzezinski, added to that Already by 1984, a "continuity of government" appara­ of Henry Kissinger, emerging over the White House at this tus, made up largely of career civil service managers drawn moment, the time is ripe for a thorough, public airing of the from all of the Executive Branch departments , had been facts about this secret parallel government.

EIR May 19, 1989 Feature 25 The secret governmentbe hind the Federal Emergency ManagementAgency by an EIR Investigative Team

Because Eastern Establishment banking interests refuse to The Federal Emergency Management Agency was cre­ change their policies in the face of the crises those policies ated under the Jimmy Carter administration by the Eastern shall shortly reap as their reward, a secret governmentappa­ Establishment's two leading think tanks, the Trilateral Com­ ratus is now consolidating its power over the United States, mission and the Council on Foreign Relations, in March of with the intention of ruling the country as a police state in 1979. Those thinktanks alsb provided virtuallyevery Carter time of real or manufactured "national emergency." The Iran­ cabinet memberand adviser. Contra affair, and the jailing of opposition political figure One of the intellectual authors of FEMA was Carter Na­ Lyndon H. LaRouche, Jr. , are but two instances of special tional Security Adviser Zbigniew Brzezinski. Another was operations in which this secret government apparatus has Samuel P. Huntington, who had called for a police-state been exposed to the public. apparatus, in the name of hlmdling "national emergencies," Sen. David Boren (D-Okla.), chairman of the Senate in his 1975 Trilateral Commission report, The Crisis of De­ Select Committee on Intelligence, referred to a "secret, par­ mocracy(see Documentation, below). Huntington was then allel government," in several interviews in January 1987, a National SecurityCouncil consultant to Carter. after his committee had completed its preliminary Iran-Con­ Huntington, prior to joining the NSC staff, had been a tra probe. Even the New York Times, in its lead editorial on project director of the Councilon Foreign Relations' "1980s Feb. 17, 1987, identified the "Project Democracy" referred Project" from 1974 to 1976. The 1980s Project mapped out to in Lt. Col. Oliver North's notebooks as a "private, secret every policy that was subsequentlycarried out by the 1977- government. " 81 Carter administration. The centerpiece of those policy Internationally, this secret governmentis using the power perspectives was summed up by project participant C. Fred of the United States to enforce InternationalMonetary Fund Hirsch, seconded by Carter Federal Reserve chief Paul looting programs, in an effort to keep the system of usury Volcker: "The controlled disintegration of the world econo­ known as "the international monetary system" from collaps­ my is a legitimate objective for the 1980s." "Controlled dis­ ing. The secret government is also preparing a regime of integration" of democratic institutions was a political corol­ ferocious austerity in the United States, a totalitarian, fascist lary, as Huntington's Crisis of Democracy specified. policy which is to be enforced by the National Security Coun­ While at the NSC in 1977-78, Huntington drafted Presi­ cil through the Federal Emergency Management Agency dential Review Memorandum 32, mandating that "the con­ (FEMA). tinuity of government"be maintained during a national emer­ This apparatus now runs the Bush administration, which gency. It bypassed the Constitution, awarding emergency has operated from Day One through Executive Orders and powers to the National SecurityCounc il to run all operations classifiedNational Security Decision Directives. For exam­ of the governmentin time of emergency. ple, one of the first actsof former CIA director George Bush FEMA's first action was to manage the psychological as President of the United States was to issue National Se­ warfare that surrounded the "nuclear disaster" at the Three curity Decision Directive 3, reorganizing the NSC and giving Mile Island plant near Harrisburg, Pennsylvania-a dry-run enormous power to two standing committees headed by Na­ exercise in how the agency could be used to create crises in tional Security Adviser Brent Scowcroft, Henry Kissinger's the popular mind where none actually existed (see box). close associate, and former deputy CIA director Robert Gates. More than 90 senior-level interagency groups set up. by the The secret government expands Reagan administration were dispensed with, and their func­ On Dec. 4, 1981, President Reagan signed Executive tions placed under the NSC. In this framework, the secret Orders 12333 and 12334, which allowed the creation of a government is now expanding a paramilitary crisis-manage­ complex of secret activities beyond the reach of public law. ment capability to control the entire nation in time of emer­ Under the provisions for the intelligence community's use of gency, actual or manufactured. FEMA is at the center of this private agencies contained in Executive Order 12333, such apparatus. agencies, not under the control of lawful authority, seized

26 Feature EIR May 19, 1989 controlover intelligence gathering and other executive func­ the Philippines through what became known as the "Project tions. This led straight to the abuses attributed to "Project Democracy" apparatus, and a "Get LaRouche" task force. Democracy" in the Iran-Contra scandal. On July 22, 1982, President Reagan issued his National In early 1982, Ronald Reagan created the Special Situa­ Security Decision Directive 47 to cOIl1plementthe operations tions Group (SSG) through his National Security Decision of the SSG and CPPG. Entitled "Etpergency Mobilization Directive 3, entitled "Crisis Management." A former Trila­ Preparedness," NSDD 47 definedthe responsibilities of fed­ teral Commission member, Vice President George Bush, was eral departments and branches of the U. S. government to designated its chairman. respond to a national security crisis or domestic emergency. On May 14, President Reagan's trusted adviser, Judge The President invested the Emergency Mobilization Prepar­ William Clark, issued a memorandum which announced that edness Board with the responsibility to implement the pro­ the SSG "is charged, inter alia. with formulating plans in grams detailed in the directive. Th� directive included an anticipation of crisis. In order to facilitate this crisis pre­ overzealous restriction of civil rights, bordering on explicit planning responsibility, a standing Crisis Pre-Planning Group police-state measures. (CPPG) is hereby established." On July 5, 1987, Miami Herald writer Alfonso Chardy Marine Lt. Col. Oliver North was assigned to theCPPG . published an article headlined "Reagan Aides and the 'Se­ Through outgrowths of this structure, North, Col. Robert cret' Government." This article was pne of several to appear McFarlane, Adm. John Poindexter, Gen. Richard Secord, detailing the expansion of the secret government apparatus and others came to wield extraordinary power, running var­ during the 1980s. According to sources, and confirmed by a ious foreign and domestic initiatives for the secret govern­ FEMA spokesman, it reported that Lt. Col. Oliver North was ment apparatus, including but not limited to the Iran-Contra assigned to meet with top officials ofFEMA from some time operations, the overthrow of President Ferdinand Marcos of in 1982 through April 1984, in order to carry out the imple-

Foundation April 6: "We expected to come down into the Harrisburg area and find a ghost town, deserted streets. What we found in Middletown was business as usual, with reporters wandering around trying to findsome news. "There was no competent briefing to the press after FEMA 'handles' Metropolitan Edison [part owner of the plant] was offi­ cially gagged by the White House, on the request of Gov. Three Mile Island Richard Thornburgh. There were no written technical statements out and no technical advisers were allowed to The Federal Emergency Management Agency's first op­ get near the reporters to explain what was going on. So, erational exercise was in response to the safety problem the reports coming out of Middletown-H-blasts, gigan­ that developed at the Three Mile Island nuclear plant in tic bubbles, and so forth-were based on small shreds of Middletown, just outside of Harrisburg, Pennsylvania. evidence given to the reporters in small doses that these Although FEMA was not scheduled to become oper­ reporters then had to elaborate into SOO-word and 1,000- ational until April 1 , 1979, the National Security Council word articles. "jumped the gun" and set FEMA into operation Tuesday, "Until April 1, there was not one technical adviser on March 27-one day before the incident. Under the direc­ the scene who was capable of explaining how a nuclear tion of the NSC and a White House Emergency Task power plant works to reporters, who were generally not Force, FEMA personnel coordinated the emergency evac­ clear on this. In terms of where the initial incident oc­ uation panic scenario, while the National Security Coun­ curred, for example, everybody assumed it was in the core cil's Jack Watson and Nuclear Regulatory Commission of the reactor. No one understood how the entire system personnel managed the content and flowof news. worked. When the technical adviser$ finallycame in , they This news from the top was key to the creation of a had to spend virtually the whole night answering report­ climate of panic-making people feel helpless and feel as ers' questions to try to clear up til!e complete unreality though there were no rigorous scientific principles to ad­ about what people thought had gone on. equately evaluate the crisis situation. "To a certain extent, the press is to blame for the Executive Intelligence Review correspondent Stuart sensational coverage for something that was not sensa­ Pettingell described the on-the-scene situation in Harris­ tional, but the honest reporters did not have a chance to burg this way at a special briefing by the Fusion Energy findout the true story. "

EIR May 19, 1989 Feature 27 mentation of NSDD 47 . Strengthening the NSC We quote at length fromChardy 's report. Inside the Washington headquarters of FEMA is a unit "Some of President Reagan's top advisers have operated called the Emergency Information and Coordination Center, a virtual parallel government outside the traditional cabinet whose mission is supposedly to "support the National Emer­ departments and agencies almost from the day Reagan took gency Management Authority-the President, the Vice Pres­ office, congressional investigators and administration offi­ ident, and the FEMA Director." This emergency chain of cials have concluded. Investigators believe that the advisers' command could be used to suspend the Constitution and activities extended well beyond the secret arms sales to Iran throw all opposition to the regime into concentration camps. and aid to the Contras now under investigation. Lt. Col. Or, in an alternative scenario, the emergency apparatus could Oliver North, for example, helped draw up a controversial be used by a figure such as Brent Scowcroft for a de facto plan to suspend the Constitution in the event of a national NSC putsch against a weakened and unpopular President crisis, such as nuclear war, violent and widespread internal Bush, once again giving Henry Kissinger direct domination dissent, or national opposition to a U.S. military invasion over the Executive Branch as during the Watergate period. abroad." National Security Adviser Scowcroft's powers in this A bit later on in Chardy's account, we read that North regard have been enhanced by an Executive Order issued by began developing the plans for a dictatorship in 1982, some outgoing President Reagan. Executive Order 12656 of Nov. time afterhe arrived at the Reagan National Security Council. 18, 1988 contained the following instructions on emergency At first, North's assignment at NSC was to carry the "foot­ preparedness: ball," the briefcase containing codes authorizing the use of "A national security emergency is any occurrence, in­ nuclear weapons and contingency plans in the event of war, cluding natural disaster, military attack, technological emer­ which is carried near the President wherever he goes. As gency, or other emergency,· that seriously degrades or seri­ Chardy writes: ously threatens the national security of the United States. "North later widened his assignment to cover national Policy for national security emergency preparedne!>s shall be crisis contigency planning. In that capacity, he became in­ established by the President. Pursuant to the President's di­ volved with the controversialnational crisis emergency plan rection , the National Security Council shall be responsible drafted by the Federal Emergency Management Agency." for developing and administering such policy." And again: Chardy's article continues: "The National Security Council is the principal forum for "From 1982 to 1984, North assisted FEMA, the U.S. consideration of national security emergency preparedness government's chief national crisis-management unit, in re­ policy." vising contingency plans for dealing with nuclear war, insur­ This Executive Order went in a direction opposite to what rection, or massive militarymobilizati on." the government was then purporting to desire. After the Iran­ The articlequotes a FEMA spokesman saying, "Officials Contra escapades of Oliver North and friends, the Tower ofFEMA met with Colonel North during 1982 to 1984. These Commission had stressed that the role of the National Secu­ meetings wereappropriate to Colonel North's duties with the rity Council was to prepare policy options for the President, National Security Council and FEMA's responsibilities in and not the carrying out of operative interventions. Now this certain areas of national security." verbiage is out the window again, and we are back to the Later, according to the article, Reagan's first-termAttor­ National Security Council as it existed under Henry Kissin­ ney General, William French Smith, criticized FEMA plan­ ger, with the NSC functioning as the command center for the ning, saying that it called for the suspension of the Constitu­ operations of all the Executive departments. The National tion, turning control of the United States over to FEMA, Security Adviser director has been made a de facto prime appointment of military commanders to run state and local minister whose operative au1!hority routinely eclipses that of governments, and declaration of martial law during a national the President. crisis. Through reforms made early in the Scowcroft tenure, two FEMA officials claim that the measuresproposed by North NSC organisms will carry out the coordination of the various have never been officially promulgated, but this is an equiv­ federal agencies: one, at the <:abinetlevel , will be chaired by ocation: At the center of the FEMA contingency planning Scowcroft, who will have precedence over Secretary of State arsenal is a folder containing 22 draft Executive Orders which James Baker. The second, at the sub-cabinet level, will be the President would be asked to sign in the event of war or chaired by Scowcroft's deputy, Robert Gates, former num­ other catastrophe; it is quite possible that North's handiwork ber-two of the CIA who failed to win congressional confir­ still resides in this file, ready to be implemented at a mo­ mation to take over the CIA because of his Irangate involve­ ment's notice. The National Security Council, which would ment. This Gates committee :wiV subsume the various inter­ direct FEMA actions in an emergency, also has some 1,222 agency groups of the Reagan years, like the Restricted Inter­ pages of top secret "emergency response scenarios" to cover agency Group (RIG), Special Interagency Group (SIG), Op­ various eventualities. erations Subgroup (OSG), 2Q8 Committee, and others .

28 Feature EIR May 19, 1989 'Continuity of government' Although most of the readinessplan that describes REX But in a state of war or emergency, the interagency pro­ 84 Alpha is still classified, it is noteworthy that the scripting cess can be conducted directly through FEMA. This fu nction of the international financial section is not only accurate, but would be carried out by a secret "continuity of government" implies that FEMA is monitoring the crisis for possible ac­ committee made up of about 100 top government officials. tion. These officials are located in the upper echelons of the Ex­ The formulation of the crisis is similar to that which ecutive departments headed by cabinet-rank secretaries, oth­ Lyndon LaRouche has elaborated, andis something that has er federal agencies, the governors of the 50 individual states, never appeared in the Eastern Establishment press or jour­ and law enforcement organizations. nals. It reads, in part: An example of a member of the "continuity of govern­ "World Financial Trends: February 1980- 1984. The sud­ ment" aspect of the FEMA apparatus is one Buster Horton, den withdrawal of cheap incremental loans to heavily in­ nominally a high-level bureaucrat of the U. S. Department of debted countries generated a number of consequences to both Agriculture charged with "emergency preparedness and borrowers and lenders alike. The firstwas to throw the entire readiness." Upon closer examination, Horton turns out to be world into the worst recession since the great depression of the primary liaison between the U.S. Department of Agri­ the 1930s. Economic sectors hit firstwere many large capital culture and FEMA , one of two officials to be so designated. projects throughout the developing world. This had an im­ And, it was Buster Hortonwho was insinuated as the foreman mediate impact on capital goods-eJQjlOrting industries in the of the Alexandria, Virginia federal jury that convicted and industrial countries. World trade began to shrink in both real imprisoned Lyndon LaRouche on "conspiracy" charges in and nominal terms. January 1989. "The response of commercial banks, in the face of these Horton is reported to possess a very high level security trends, was predictable. In most major debtor countries, a clearance (possibly at the Q or "cosmic" levels) which allows cycle ofloan 'reschedulings' began in 1980. In addition, both him to have access to top-level NATO secret documents. It the multinational banks and the International Monetary Fund is clear that the presence of an intelligence community rep­ (IMF) stressed classical economics to their client states. They resentative of this level in a jury represents a police-state emphasized three actions: (a) lower imports; (b) raise ex­ interventionthat by itself must overturn the verdict rendered. ports; and (c) reduce the governmentsector deficitby cutting Counting Horton, six members of the Alexandria jury owed subsidies and, in effect, cutting real, wages. their daily breadto the U.S. government,either as employees "The outcome of this advice, on a worldwide basis, was of federal agencies, or as the dependents of federal employ­ primarily social unrest. It occurred' in the Warsaw Pact na­ ees. One of FEMA's official functions IS to administer "co­ tions as well as free world countries. The major impact of a ordination mechanisms among elements of the federal law­ high and rising dollar with the interest rates of most loans enforcement community." There are many indications that tied to the London Interbank Offer Rate (LIBOR) was to shift the manipulated guilty verdict in the LaRouche case, leading almost all import earnings frombeing used to pay for imports to the jailing of the opposition figurefore most in resisting the to being used to service debts. As local inventories of im­ encroachments of the invisible government, was an integral ported parts began to run down, industrial production in many partof the NSC-FEMA "creeping coup" against constitution­ developing countries began to drop. Bankruptcies and de­ al legality in the United States. faults on a massive scale developed, and doomsayers began to publish apocalyptic scenarios in the financialpres s. The financial emergency scenario "Major social unrest began in Poland with the initiation FEMA regularly holds mobilization exercises that could and supression of the Solidarity movement in 1980 and 1982. be used to simulate or cover for a coup d'etat. These include In mid- 1982, Mexico ran into a liquidity problem when oil exercises cordinated with the NATO Wintex-Cimex series; prices and export volume began to fall short of the govern­ Pressure Point 84, conducted jointly with the Department of ment's projections ....In Venezuela, the problem was met Defense; Hilex II, a NATO communications exercise; plus a largely by reducing capital expenditures." series of exercises given the code name of REX, ("readiness exercise") in the sense of emergency preparedness. REX 82 The Bush administration Bravo was held in 1982, and it was followed by REX 84 As was the case with Huntington's book The Crisis of Alpha. REX exercises are officiallydescribed as designed to Democracy. the REX 84 Alpha simulation of global financial test "continuity of government procedures, military support crisis is as much a statement of the elites' intentions as an of civil defense plans, and resource management." REX 84 academic study of the problem. Stubborn adherence to an Alpha was carried out together with an exercise of the Joint irrational global monetary policy i by Ronald Reagan and Chiefs of Staff called Night Train 84, described as "a com­ George Bush led directly to the October 1987 Wall Street mand post exercise designed to evaluate the worldwide mil­ crash, as Lyndon LaRouche had predicted it would. In a itary command and control system." nationwide television address during the 1988 presidential

EIR May 19, 1989 Feature 29 campaign, LaRouche warned Bush that unless he followed LaRouche's advice on economics, if elected, he would mere­ ly be acting like the poor captain of the Titanic who followed company policy, to the detriment of the safety of his ship. As the REX 84 Alpha scenario had forecast, Bush's ship hit its firsticeberg in Venezuela. On Sunday, Feb. 26, 1989, Carlos Andres Perez, the newly elected President of Vene­ zuela, announced a gasoline price hike in accordance with InternationalMonetary Fund austerity demands. The follow­ ing day, mass rioting broke out in the capital city of Caracas We 're reaping fnlits when thousands of workers could not afford the gasoline to drive to work. During the ensuing four days of rioting, 1,000 of the Carter era Venezuelans were killed, hundreds were wounded, 35,000 businesses were looted, and damage was estimated to be in by Jeffrey Steinberg the billions of bolivars. Perez was forced to suspend the Constitution and implement martial law to quell the crisis! Ronald Reagan, and perhaps even George Bush, may have FEMA's threat today been swept into the White House on the crest of an anti­ The man currently nominated to the director of FEMA, Carter, anti-Trilateral ColllllIlission wave, but the legacy of Lt. Gen. Calvin Franklin, will be personally advised by the the "Magnolia Mafia's" four years in the Oval Office still FEMA Advisory Board (FAB), which is composed of 21 haunts the presidency, eight years after Jimmy and Rosalyn representatives of government, the military, science, busi­ packed their bags and returnedto Georgia. ness, and academia. The FAB meets twice a year-presum­ When Jimmy Carter waltzed into the Whire House in ably more oftenin time of "emergency" -and has four stand­ January 1977, ostensibly an "outsider" to the New York­ ing committees: Civil Defense, Continuity of Government, Washington power corridor, he brought into power the most Terrorism, and Industrial Preparedness. homogeneous collection of Eastern Liberal Establishment EIR questioned the current director of the FAB's Conti­ braintrusters in decades. In fact, Carter himself had been nuity of GovernmentCommitt ee, Gen. AndrewGoodpaster, selected by the David ROOkefeller, Henry Kissinger, Zbig­ a former NATO supreme commander, on the role FEMA niew Brzezinski Trilateral Commission to fulfilla very spe­ would play in the future, given that President Bush's NSDD cific mission, a mission spelled out in great detail in the 3 had made the National Security Council responsible for Council on ForeignRelatio J)s'most ambitious effort at social making and overseeing national preparedness policy. Gen­ engineering ever. eral Goodpaster responded: "It will be very helpful that some­ Beginning in the early i1970s, even before the Trilateral one who understands what FEMA is all about is heading the Commission was "born," the Council on Foreign Relations National Security Council," i.e., Scowcroft. undertook its mammoth "1980s Project," a series of studies Not surprisingly, the FEMA Advisory Board is weighed aimed at developing a coherentgameplan for turningthe next down with persons from the Council on Foreign Relations. decade into an era of "controlleddisi ntegration," a "collapse CPR members on the board include Samuel Huntington, of democracy," and the onset of "universal fascism"-what the creator of FEMA; Dr. Wesley W. Posvar, chairman of some CPR pundits prefe� to call "fascism with a demo­ F AB and president of the University of Pittsburgh; Dr. Robert cratic face." Kupperman , chairman of FAB Committee on Terrorism; This malthusian world federalist vision was not in reac­ General Goodpaster (USA-ret.), and Lt. Gen. Brent Scow­ tion to any world crisis or pending global disaster. Rather, it croft, who resigned his military post upon his appointment was the studied, conscious policy intent of the Anglo-Amer­ as National Security Adviser. ican Establishment, to accelerate their plans for a global On March 2, 1989, President Bush announced that he power-sharing arrangement with whatever leadership com­ had chosen General Franklin to become the new directorof bination emerged in Moscow during the 1980s. Some histo­ FEMA. Longtime proponents of emergency planning and rians have described this all the revival of the Anglo-Soviet civil defense were amazed at the choice because General Trust. Franklin, who has spent the last eight years as the command­ Revisited from the stapdpoint of the CPR's ambitious ing general of the District of Columbia National Guard, has agenda for the 1980s, the Carter presidency was a critical limited experience in emergency planning. Sources believe moment of implementation. Laws were passed, covert op­ that he was chosen as a figurehead, not likely to question the erations were launched, and sweeping financial maneuvers actions ordered by Scowcroft and the Council on Foreign were executed-all with the intention of setting the course Relations. of the next decade. Whether they ever realized it or not,

30 Feature EIR May 19, 1989 Ronald Reagan and George Bush have so far never managed pated timesof crisis. In 1978, Carterpassed legislationthrough to stray outside of the bounds set for them by the 1980s Congress establishing the Federal Eptergency Management Project. Agency. Just a few of the initiatives of the Carter-Mondale Trila­ • Officeof Special Investigations: Underlying the 1980s teral administration for which the world is still paying a steep Project was the commitment to revive the World WarII Yalta price include the following. alliance of Roosevelt, Stalin, and Churchill. Under the "New • Paul Volcker's 20% interest rates: In the fall of 1979, Yalta," Americans would learn to love the Russians and Federal Reserve Board chairman Volcker initiated a sudden revive wartime frenzyagainst Germany and Japan-this time and dramatic increase in the lending rate of theFed , setting blaming German and Japanese technological "arrogance" and in motion a process that would drive the prime rate over 20% "greed." A seed crystal of that process was launched during by the time Ronald Reagan was sworninto office. Following Henry Kissinger's heyday in the fOl!m of State Department on the heels of a half-decade of petro-dollar lending, the "informal" cooperation with the Soviet government in swap­ Volcker shock lay the basis for what emerged in 1982 as a ping information on war criminals. ln 1978, Rep. Elizabeth full-blown globaldebt crisis. By thetime GeorgeBush stepped Holtzman (D-N . Y .), with the blessings of the Carter White into office early this year, that debt crisis had spilled over House, introduced legislation creati*g the Office of Special into the domestic banking system to the point that the savings Investigations (OSI) , a Justice Departmentunit whose raison and loan industryhas nearly gone under. d' etre was to hunt down old Nazis in collaboration with the • The fall of the Shah of Iran:The Khomeini fundamen­ KGB and Israeli Intelligence. From this Nazi-hunting collab­ talist revolution was designed in London and manufactured oration was born a marriageof convenience between Soviet in Washington. Back in 1978, Carter National Security Ad­ bloc and Western security services. Soviet justice was given viser and Trilateralist Zbigniew Brzezinski had set into mo­ a formal place in the American judicial system, Soviet man­ tion a project alternately called the "arc of crisis" or "the ufactured "evidence" was accepted in U.S. courts of law, BernardLewis plan." Whatever the monicker the Carter team and an elaborate back channel was established for KGB in­ installed the Khomeini fundamentalists in power, and when fluence insidethe Department of Justice. an ungrateful Khomeini seized all the personnel at the U.S. • Abscam and Brilab: One astute Washington insider embassy in Teheran, the CarterWhite House responded with recently said of Abscam: ''The realvictims are the 99 senators a covert arms-for-hostages plan that laid the foundations for who chose to capitulate to the FBI's blackmail and sell out the subsequent Reagan-Bush folly. And, after decades of their constituencies-not the lone senator , Harrison Wil­ relative peace in the Persian Gulf, in September 1980, war liams, who chose to fight alone." With Abscam, directed by broke out between Iraq and Iran. The Gulf war would go on Kissinger crony William Webster, aReagan-Bush era direc­ for almost a decade, would see an estimated $240 billion in tor of both FBI and CIA, the U.S. Congress was rendered military hardware pumped into the region, hundreds of thou­ impotent overnight. Likewise, through a parallel series of sands killed, and oil prices steadily soar back over $20 a "sting" operations run by an increasingly out-of-control FBI, barrel. the labor movement, and eventually the Pentagon, were • The Sandinista revolution: It was Jimmy Carter's hu­ ground up, paving the way for the Project Democracy brand man rights policy that led to the overthrow of Anastazio of "democratic" corporatism. Somoza regime in Nicaragua and the "democratic" Sandinis­ • The CIA purge: Under Adm. Stansfield Turner, the ta revolution. The overthrow of the Shah and Somoza were CIA purges begun under James Schlesinger and fueled by the the antecedents of the Reagan-Bush era Project Democracy. Church Committee hearings of the mid- 1970s, were accel­ It doesn't take a genius to figure out that, but for the Carter erated. A "pink slip" list prepared by Iran-Contra operative coups against the Shah and Somoza, the term "Iran-Contra Theodore G. Schackley, then the chief of CIA covert opera­ affair" would never have found its way into the American tions, and implemented by Turner, gutted almost the entire political lexicon. upper echelon of the agency. Henceforth , all covert opera­ • FEMA: At the 1975 Trilateral Commission shindig in tions and intelligence estimates would have to come from Kyoto, Japan, Samuel P. Huntington, on his way fromHar­ either private agencies or foreign governments. After the vard Squareto the Old Executive OfficeBuil ding as a Carter purges were completed, Shackley himself took leave, only NSC staffer, called for the creation of "Project Democracy," to surface subsequently as one of the key behind-the-scenes a corporatist alliance among leaders of banking, labor, and figures in the Iran-Contra operations associated with Oliver government to manufacture popular consensus for the CFR North's antics. austerity agenda, and to place governmentcovert operations Anyone hunting for clues as to tlhe whereabouts of what into private hands. Not coincidentally, in that same speech Sen. David Boren (D-Okla.) dubbed "the secret, parallel and policy paper, Huntington proclaimed the "crisis in de­ government" need look no further tlhan the Trilateral Com­ mocracy" and called for the creation of a government-by­ mission/Council on Foreign Relations structure that pulled decree structure to run the United States top down in antici- the strings during the Carter era, and continues to do so today.

EIR May 19, 1989 Feature 31 by public employees became more and more prevalent. . . . Documentation Governmental officials were thus caught between the need to avoid imposing higher taxes to pay for the higher wages which the governmental employees demand. The easiest and obviously most prevalent way of escaping from this dilemma is to increase wages without increasing taxes and thereby to add still further to governmentaldeficits and for demands for still higher wages. To the extent that this process is accom­ panied by low or negative rates of economic growth , tax revenues will be still further limited and the whole vicious cycle still further exacerbated. At the same time that the expansion of governmental The 1lilateral's activity creates problems of financial solvency for govern­ ment, the decline in governmental authority reduces still further the ability of governmentto deal effectivelywith these 'Crisis of Democracy' problems. The imposition of "hard" decisions imposing con­ straints on any major economic group is difficult in any de­ Published in 1975 by New York University Press, Samuel P. mocracy and particularly difficult in the United States, where Huntington's The Crisis of Democracy constituted the final the separation of powers provides a variety of points of access report of the Trilateral Commission's Task Force on the to governmental decision-making for economic interest groups Governabilityof Democracies, which was set up in the spring [This is the same argument made by former Carter White of 1974 fo llowing the severing of the dollar from gold, the House Counsel Lloyd Cutler in calling for dumping consti­ Watergating of President Richard Nixon, the first major oil tutional governmentin favor of British parliament3rianism­ hoax, and other crises prearranged by the Eastern Establish­ ed.]. During the Korean War, for instance, governmental ment. According to the book, the Westernworld was entering efforts at wage and price control failed miserably, as business into a period of economic scarcity in which the current "ex­ and farm groups were able to riddle legislation with loopholes cess of democracy" would make it extremely difficult fo r in Congress and labor was able to use its leverage with the governments to impose discipline and sacrifice on their peo­ Executive branch to eviscerate wage controls. All this oc­ ples. curred despite the fact that there was a war on and the gov­ Thefo llowing are excerpts from Huntington's chapter on ernment was not lacking in authority. The decline in govern­ the United States. Subheads have been added. mental authority in general and of the central leadership in particular during the early 1970s opens new opportunities to The vigor of democracy in special interests to bend governmental behavior to their spe­ the United States in the cial purposes. . . . 1960s thus contributed to a Finally, a government which lacks authority and which democratic distemper, in­ is committed to substantial domestic programs will have little volving the expansion of ability, short of a cataclysmic crisis, to impose on its people governmental activity, on the sacrifices which may be necessary . the one hand, and the re­ duction of governmental An 'excess' of democracy authority, on the other. This AI Smith once remarked that "the only cure for the evils democratic distemper, in of democracy is more democracy." Our analysis suggests tum, had furth�r important that applying that cure at the present time could well be consequences for the func- Samuel Huntington adding fuel to the flames. Instead, some of the problems of tioning of the political system. The extent of these conse­ governance in the United States today stem from an "excess quences was, as of 1974, still unclear, depending, obviously, of democracy" in much the sense in which David Donald on the duration and the scope of the democratic surge . used the term to refer to the consequences of the Jacksonian The expansion of governmental activity produced budg­ revolution which helped to precipitate the Civil War. Need­ etary deficits and a major expansion of total governmental ed, instead, is a greater degree of moderation in democracy . debt ....The major expansion of unionism in the public In practice, this moderation has two major areas of appli­ sector . . . made the the salary and wage determinations for cation. First, democracy is only one way of constituting governmental employees a central focus of political contro­ authority. During the surge of the 1960s , however, the dem­ versy. Unionization produced higher wages and more vig­ ocratic principle was extended to many institutions where it orous collective bargaining to secure higher wages. Strikes can, in the long run, only frustrate the purposes of those

32 Feature EIR May 19, 1989 institutions. . . . tive authority over their members are less of a challenge to Second, the effective operation of a democratic political the authority of the national politicltI leaders than they are a system usually requires some measure of apathy and non­ prerequisite to the exercise of authority by those leaders. If involvement on the partof some individuals and groups. In the unions are disorganized, if the membership is rebellious, the past, every democratic society has had a marginal popu­ if extreme demands and wild-cat strikes are the order of the lation . . . which has not actively participated in politics. In day, the formulation and implementation of a national wage itself, this marginality on the part of some groups is inher­ policy become impossible. The weakening of authority ently undemocratic, but it has also been one of the factors throughout society thus contributes to the weakening of the which has enabled democracy to function effectively. Mar­ authority of government. ginal social groups, as in the case of blacks, are now becom­ Recent years in the Trilateral countries have seen the ing fullparticipants in the political system. Yet the danger of expansion of the demands on government from individuals overloading the political system with demands which extend and groups. The expansion takes thF form of (1) the involve­ its functions and undermine its authority still remains. Less ment of an increasing proportionof the population in political marginality on the part of some groups thus needs to be activity; (2) the development of new groups and of new replaced bymore self-restraint on the parts of all groups. . . . consciousness on the part of old $roups, including youth, Over the years, the American political system has emerged regional groups, and ethnic minorities; (3) the diversification as a distinctive case of extraordinarily democratic institutions of the political means and tactics which groups use to secure joined to an exclusively democratic value system. Democ­ their ends; (4) an increasing expectation on the part of groups racy is more of a threat to itself in the United States than it is that government has the responsibility to meet their needs; in either Europe or Japan where there still exist residual and (5) an escalation in what they conceive those needs to inheritances of traditional and aristocratic values. The ab­ be. sence of such values in the United States produces a lack of The result is an "overload" on governmentand the expan­ balance in societywhich , in tum, leads to the swing back and sion of the roleof governmentin economy and society. Dur­ forth between creedal passion and creedal passivity. Political ing the 1960s, governmental expenditures, as a proportion of authority is never strong in the United States, and it is pecul­ GNP, increased significantly in all the principal Trilateral iarly weak during a creedal passion period of intense com­ countries, except for Japan. This expansion of governmental mitment to democratic and egalitarian ideals. In the United activity was attributed not so much to the strength of govern­ States, the strength of democracy poses a problem for the ment as to its weakness and the inability and unwillingness governability of democracy in a way which is not the case of central political leaders to reject the demands made upon elsewhere. them by numerically and functionally important groups in their society. The impetus to respond to the demands which Limits to growth groups made on government is deeply rooted in both the The vulnerability of democratic governmentin the United attitudinal and structural features ,of a democratic society. States thus comes not primarily fromexternal threats , though The democratic idea that government should be responsive such threats are real, nor from internal subversion from the to the peoplecreates the expectationthat government should left or the right, although both possibilities could exist, but meet the needs and correctthe evils affecting particular groups rather from the internal dynamics of democracy itself in a in society. Confronted with the structural imperativeof com­ highly educated, mobilized, and participant society. "De­ petitiveelections every few years, political leaders can hardly mocracy never lasts long," John Adams observed. "It soon do anything else. wastes, exhausts, and murders itself. There never was a de­ Inflation is obviously not a problem which is peculiar to mocracy yet that did not commit suicide." That suicide is democratic societies, and it may well be the result of causes morelikely to be the product of overindulgence than of any quite extrinsic to the democratic process. It may, however, other cause. A value which is normally good in itself is not be exacerbated by democratic politic:s and it is, without doubt, necessarily optimized when it is maximized. We have come extremely difficultfor democratic systems to deal with effec­ to recognizethat there are potentially desirable limits to eco­ tively. The natural tendency of the political demands permit­ nomic growth. There are also potentially desirable limits to ted and encouraged by the dynamics of a democratic system the indefinite extension of political democracy. Democracy helps governments to deal with the problems of economic will have a longer life if it has a more balanced existence. recession, particularly unemployment, and it hampers them The governability of a society at the national level de­ in dealing effectively with inflation. In the face of the claims pends upon the extent to which it is effectively governed at of business groups, labor unionsj and the beneficiaries of the sub-national, regional, local, functional, and industrial governmental largesse, it becomes difficult, if not impossi­ levels. In the modem state, for instance, powerfultrade union ble, for democratic governmentsto curtail spending, increase "bosses" areoften viewed as a threat to the power of the state. taxes, and control prices and wag¢s. In this sense, inflation In actuality, however, responsible union leaders with effec- is the economic disease of democracies.

EIR May 19, 1989 Feature 33 Panama leads battle against limited sovereignty

by Carlos Wesley

The government of Panama was forced to annul the results tries of Latin Americaa Trilateralconcept long in (he works: of its May 7 national elections because of a massive fraud "limited sovereignty." The U.S.-created Panama crisis pro­ and vote buying operation run by the United States. In a vides a convenient excuse to sell this policy, which is against decree issued May lO, Panama's Electoral Tribunal charged the real interest of the West. that uninvited foreigners came into Panama "whose evident This was made clear by top U.S. officials, who told purpose was to back the thesis of electoral fraud proclaimed Reuters May 11 that the crisis in Panama will force Latin to the world by the U.S. government long before the elec­ Americato admit that it "must loosen its interpretationof the tions." The decree charged that there was widespread "steal­ non-intervention principle, if multilateral policy is to have ing of ballots from the electoral precincts, vote"buying by any success in addressing threats to securityand democracy." political parties and especially the lack of tally sheets and Secretaryof State James Baker affirmed "limited sovereign­ other documents which make it absolutely impossible to de­ ty" as the administration's policy during a speech earlierthis termine which candidate won." month. "If the peoples and governments of Latin America U.S. President George Bush responded to the Panama­ and the Caribbean ask the United States to forego unilateral nian decision May 11 by ordering 2,000troops into Panama, initiatives"-such as a military intervention into Panama­ supposedly "to protect American lives" and to "defend the "then I think it is only fair for the peoples and governments right of the people to have their will respected" -the same to join with us in good faith to tum the promise of that arguments used by Hitler to annex the Sudetenland from diplomacy into reality," he said. Czechoslovakia in 1938. Just as Hitler claimed that the "lives Agreement on the Trilateral Commission's concept of and the rights of the German people" in the Sudetenland had "limited sovereignty" was reached with the Soviet Union to be protected from Czech leader Benes, and that if only during Baker's recent visit to Moscow. This was confirmed Benes would leave everything would be resolved, Bush May 9 by Soviet spokesman Gennadi Gerasimov, who said claimed that if only the commander of Panama's Defense that talks on Central America had been the "warmest and Forces(PDF) , Gen. Manuel Noriega, were ousted, there would most productive" of those held by Baker and his Russian be no more problems between the U.S. and Panama. And hosts. just as British Prime Minister Neville Chamberlain and his The Socialist International, which marches in lock-step French counterpart, Daladier, went along with Hitler for the with the Soviets on most questions, has signed on to the new sake of "peace in our time," Carlos Andres Perez of Vene­ policy. "By all means, no question at all, the Bush adminis­ zuela and Alan Garcia of Peru, both members of the Socialist tration has a deal with the Socialist International on this," International, have ganged up with Bush against Panama. said a high-level source in Europe May 11. The decision to send in the troops to Panama came after In order to use Panama as the test-case to impose"limited consultations between Bush and his former fellow Trilateral sovereignty"on all of lbero-America, the American and world Commission member, Jimmy Carter, to impose on the coun- publics have been systematically brainwashed by a Trilateral

34 International EIR May 19, 1989 media barrage that Noriega is "a drug dictator," when in fact, provide lunch to the poll watchers, the ADO-C provided according to the U. S . Drug Enforcement Administration lunches to everybody: their poll-watchers, and those of the (DEA) and other authorities, Noriega is one of our best Latin pro-government parties. Right under the plate, there was a American allies in the war on drugs. This past March 29, for $50 bill. Of course, when the ADO-C people would come up example, AttorneyGeneral Dick Thornburgh and DEA chief with voters with fake cards, nobody· was willing to question John Lawn praised Noriega's PDF during a televised news them." conference for its role in Operation Polar Cap, which shut Electoral officialswho were supposed to deliver the tally down the largest drug-money laundering operation ever in sheets to the election board, got there hours, and even days, the United States. Half a ton of cocaine and $45 million in after they were supposed to , in many cases with altered tally drug funds were confiscated, and 127 drug traffickers were sheets. Some never got there. Two days after the polls closed, arrested, thanks to Noriega's cooperation. the national election board was still issuing calls for the tally This is in sharp contrast with the people the Bush admin­ sheets to be delivered for counting. ADO-C firstvice-presi­ istration financed to "bring democracy to Panama." One is dential candidate, Ricardo Arias Calderon, bragged to the Carlos Eleta Almanin, owner of the opposition's largest tele­ Washington Post May 9 "that the opposition still retained 'a vision station, arrested in Georgia last month on charges of great number' oftally sheets that would prove their victory." conspiracy to smuggle 600 kilos of cocaine into the United Blatant U. S. meddling in Panama prompted the Mexican States, and the Central Intelligence Agency-financed Dem­ official daily El Nacional to editorialize May 10 that for ocratic Opposition Civic Alliance (ADO-C) second vice­ Panama, "it was not even worth holding the elections because presidential candidate in the May 7 election, Guillermo "Billy" it is the President of another country (Bush) who appointed Ford. Ford, who was elevated to martyrdom by the U.S. himself as Panama's Electoral College. " media after he was bloodied in a melee with pro-government The decision to annul the elections, was praised by El supporters May 10, owns two banks caught laundering drug Nacional as "an act of political realism." In an editorial May funds by authorities. In fact, one of his banks, Dadeland 11, the Mexican government-owned daily warned "that for National of Miami, was the center of operations for a drug the well being of our continent and the future of the nations trafficking ring headed by Steven Samos, caught by U.S. that share the region, no one should forgetthat just one crack authorities in 1984, and who was also one of the key players is enough to bring to an end sovereignty and self determina­ in the Iran-Contra scandal. Ford's major campaign plank was tion. It is the Panamanians, and no one else, free fromoutside that he would prevent any changes in Panama's bank secrecy pressures, who should determine their future." laws, a major advantage to drug-money laundering. Just as EIR warned in its April 28 issue, unless power was handed over to the candidates ofthe Democratic Oppo­ U.S. tries to heist elections sition Civic Alliance (ADO-C), financed by the CIA, the Long before the first vote was cast in Panama, Bush said Bush administration would set in motion immediately after that the United States would not recognize the election results the elections "strikes and streetdisturbances" within Panama, unless they brought to power the opponents of Noriega. "Let "organized by Panamanian agents of the United States with me be clear: The U.S. will not recognize the results of a the intent of provoking a violent confrontation with the PDF' fraudulent election engineered to keep Noriega in power," to provide an excuse for military intervention. said Bush in a May 2 speech to David Rockefeller's Council EIR also warned, that the Bush regime would pressure of the Americas . the nations of Ibero-America to: In fact, as EIR warned in its April 28 issue, it was the • Join in proclaiming Panama's elections fraudulent; U. S. which was preparing to heist the elections by employing • suspend diplomatic ties with Panama; practices so fraudulent that they would have made an old­ • have the Organization of American States (OAS), the time Chicago ward-heeler envious. Ibero-American Group of Eight nations, and other Ibero­ Estimates of the amount spent by the CIA and other American forums vote to censure Panama. agencies to disrupt the Panamanian elections range from the EIR warned that the shock waves from these develop­ $10 million which the administration leaked to U.S. News ments would extend throughout mero-America, most im­ and World Report in its May 1 issue, to as much as $120 mediately into Argentina, where Peronist presidential can­ million. The money was used to set up a clandestine radio didate Carlos Menem held a commanding lead over Eduardo and TV network, run by CIA operative Kurt Frederick Muse; Angeloz of the Radical Party of socialist President Raul AI­ to purchase prime television time for ADO-C on RPC tele­ fonsin in the May 14 elections. vision, owned by accused drug trafficker Eleta Almaran; and So far, developments have been exactly what EIR said to buy votes and electoral officialsoutright. they would be. As U.S. troops were being deployed into "They were buying votes at $50, $60, $100 a piece," said Panama, the Bush administration began "to pressure the Lat­ one observer on the ground about the CIA financedADO-C . in American countries" through Venezuelan President Carlos "Since the pro-government forces had no money even to Andres Perez, a member of Jimmy Carter's Council of Free-

EIR May 19, 1989 International 35 ly-Elected heads of Governments (COFEHG), reported the Based on past performance, the General was not about to Jornal do Brasil May 12. leave voluntarily, since he understands that the U.S. wants him out in order to renegotiate the canal treaties, and extend Multilateral action the right to U.S. military bases in Panama, past the year Perez, who was described by an official of Brazil's For­ 2000. eign Ministry as "a spokesman for the United States," got the As to a coup, on May 11,Panama 's Defense Forces Organization of American States to agree to an extraordinary charged that Carlos Andres Perez had attempted to bribe four foreign ministers' meeting on Panama for May 17, by arguing high-ranking officers to kidnap Noriega. In a document re­ that it was preferable to "unilateral U. S. action." The Jo rnal leased to the press, the four said Perez had promised them do Brasil noted that "with Latin American support in its "abundant financial aid for the country, reincorporation of pocket, the WhiteHouse decided to reduce the fire-powerof Panama into the Group of 8, and promises of international the troops to be sent" to Panama. recognition" if they were to arrest Noriega, turn him over to "What we areinterested in is that the U . S. acts within the the U.S., annul the May 7 elections, and install a provisional OAS," said Perez May 11. In fact, that was also what the government. United States wanted. One of the first calls for enacting If "multilateral" efforts to oust Noriega fail, Bush-who limited sovereigntywas a proposal to set up an international has put the prestige of his administration on the line-will tribunal to oversee national elections under the auspices of have to face the prospect of ordering military action alone. the OAS. This was first floated at a meeting March 30 at the Despite the overwhelming s�riority of U.S. forces, Pana­ Carter Center in Atlanta, attended by Perez, U.S. Secretary ma, unlike Grenada, will not!be a cakewalk, and the U.S. is of State James Baker, and David Rockefeller, among others. likely to find itself mired in a strategic disaster which the The proposal was adopted despite the objections from the Soviets will exploit, regardle$s of any promises Baker thinks Mexican representative, who argued that it was an attack on he got from Gorbachov. And the apparent Thero-American national sovereignty. support will disappear. Panama agreed to the OAS meeting on the condition that it take up "the constant interference in its internal affairs by Latin support is smoke. and mirrors the United States, to bend the nation's sovereign will and in • Argentina's Raul Alfons}n will be a powerless lame this way obtain benefitsfor its own interests," in violation of duck afterMay 14. the OAS charter. However, said Soraya Cano, Panama's • Peru's Alan Garcia is (acing unrest from his military, alternate ambassador to the OAS May 10, "The Panamanian because his anti-militarism has allowed the narco-terrorist elections are a matter of internal jurisdiction, based on the Shining Path and MRTA guerrillas to achieve virtual dual the principle of self-determination," and not subject to OAS power during his term. His anti-militarism, however, does action. not extend to Communist Nic�agua, which regime he enthu­ The Panamanian government also warned the OAS del­ siastically supports. egates that the "complex variable of so-called U.S. national • Venezuela's Perez is facing tremendousunrest at home security interests could well lead, at any moment, to the because of the debt crisis. LastMarch, some 1,000Venezue­ precedent that they are attempting to set in Panama being lans were killed for protesting against Perez's imposition of used against any political person in Latin America or the International Monetary Fund (IMF) austerity. On May 18, Caribbean . . . to impose changes according to their conven­ he faces another test when Venezuela's labormovement stages ience or whim." a general strike against his economic policies. The U. S. reply was that unless the Latin Americans were • The continent's biggest powers, Brazil and Mexico are willing to go along with "multilateralism," and agree to pres­ not likely to go along with U.S. multilateralism for long. sure Noriega to leave and impose a government of U.S. Brazil is waging its own fight against limited sovereignty choosing in Panama, then it will unilaterally use military against United States pressure to put the Amazon under su­ force against Panama and tear up the canal treaties. "If three pranational control, and Mexico, long wary of U . S. interven­ months down the line Noriega is still in power, the United tionism, also feels threatened by the U.S.-Mexican Bination­ States would feel justified in taking direct action," said a al Commission, co-chaired by Henry Kissinger's partner, "former U.S. policy maker," according to Reuters May 11. Deputy Secretary of State Lawrence Eagleburger's call in American troops were not expected to engage in any 1988, for "binational government" over sweatshop, free­ immmediate military confrontation against Panama's De­ trade zones, on the U.S. Mexican border. fense Forces (PDF) commanded by General Noriega-al­ The Mexican establishment daily Excelsior charged May though the possibility cannot be ruled out. Instead, the 13 that, "by encouraging Noriega's overthrow," Venezuela's administration was betting that the show of force and the Perez was acting "as the procCimsulof the Empire ." "Perez is Latin American diplomatic offensive would persuade Norie­ an agent of the CIA," said Excelsior. calling on the Mexican ga to leave voluntarily or to encourage a coup against him government to act to prevent the U. S. from repeating in within the PDF. Panama "100years of threats and invasions. "

36 International EIR May 19, 1989 Schiller Institute celebrates Council of Florence anniversary by Nora Hamennan

In what was praised by Italian Senator Carlo Tani as a "bold Eastern Roman Empire, known as Byzantium, at the Coun­ and courageous initiative," the Schiller Institute held an in­ cil. ternational seminar in Rome, Italy on May 5-6 to commem­ The Filioque was a clarification added in the West to the orate a turning point in the history of our civilization, the Nicene Creed, which specified that the third member of the ecumenical Council of Christianchurches which reached its Holy Trinity, the Holy Spirit, proceeds fromboth the Father highpoint in 1439 when the Eastern Orthodox and Roman and from the Son equally-a clause which helps to empha­ Catholic Churches were dramatically reunified under the size mankind's special responsibility, in imitation of Christ, magnificentcupola of the Florence Cathedral. to continue the work of Creation. It bad been rejected by the The 550th anniversary of the Council of Florence-as Byzantine church for nearly 400 years, causing a Schism the council which began in Ferrara in 1438 and finally ended between East and West and making unity against a common in Rome in 1445came to be known-provides an opportunity enemy-namely the aggressive and cruel Ottoman Turkish to reflect upon and recapture the deepest values of Western empire-impossible. Christian civilization, pivoted around the concept of the Ne­ Today, few outside the circles of religious and cultural cessity of Progress. historians may be aware of the significance of this long-ago "In these apocalyptic times, we must remember the old "theological" battle. Yet U.S. Schiller Institute president Renaissance, which lifted Europe out of the depths of the Webster Tarpley in the final speech of the conference, char­ fourteenth century's New Dark Age. We must refresh our acterized the Filioque principle as one of the pillars of West­ commitment to the effective resolutions taken at the Council em thought and pointed out that even today, there is a clear of Florence in 1439. We must renderintelligible the principle dividing line between those nations where the Filioque was which made those resolutions successful, despite all the op­ accepted and where it was rejected: a division expressed in position and setbacks of the forces assembled at that confer­ the Western European notion of individual freedom in con­ ence," wrote the American statesman Lyndon LaRouche, in trast to the Russian denial of the dignity of the individual . a message read to the Rome audience on May 5 by Fiorella Operto, president of the Schiller Institute in Italy, in Italian Contributors translation. Mr. LaRouche pointed to the growth of overt Among those who contributed to the two-day Schiller Satanism, the threat of mass starvation in China, the threat Institute seminar, held at the beautiful "Sala Borromini" au­ that the Soviets may be impelled toward war by their internal ditorium in the center of Rome, were two Cardinals of the crisis, the impending holocaust in the Third World, as rea­ Roman Catholic Church and four Senators of the Italian Re­ sons why the principle of reason must be returned to the public: Their Eminences Mario Luigi Cardinal Ciappi, and United States, through the joyful embrace of the historical Pietro Cardinal Palazzini, both experts on the Council of accomplishments of the Council of Florence. Florence, and current Senators Carlo Tani and Emilio Paolo Taviani, as well as former Senators Luigi Noe and Vincenzo The Filioque issue Carollo. Senator Taviani, a former Christian Democratic As the central such accomplishment, Schiller Institute minister in several governments, is vice president of the founder Helga Zepp-LaRouche described the contribution of Italian Senate and heads the Italian commission which is the German Cardinal Nicolaus of Cusa (Cusanus), the great­ preparing for the 500th anniversary in 1992 of the opening of est scientific mind of the age, to bringing about acceptance the New World. Christopher Columbus's voyage to America of the Filioque principle by the Greek representatives of the in 1492 was reportedly guided by the Florentine cartographer

EIR May 19, 1989 International 37 Paolo Toscanelli, a participant in the Council of Florence. of the Maronite Christians in Lebanon and their participation Senator Tani, who openedthe second day of the sessions in the Council of Florence. A particularly fascinating inter­ in person, requested a detailed report on the proceedings of vention came from Father Isydor Patrylo, the General Supe­ the Schiller Institute conference to circulate to government rior of the Basilian Order of San Josaphat, who traced the officials. He pointed out that what most contradicts thespirit life and work of the Metropolitan of Moscow known as Isi­ of the Council today is the "ecology" movement. In Italy, the dore of Kiev; a fervid supporter of unity with the Western "Greens" have moved from shutting down nuclear energy to Church, who was imprisoned and persecuted when he re­ targeting the plastics industry, hunting and fishing, and ag­ turned to Moscow. Moscow,'s rejection of the Council of riculture, with the aim of taking the entire nation back to a Florence laid the basis for the launching of the imperial doc­ Dark Age. trine of Moscow as the "Third and Final Rome"; and today, The conference shared with the original Council of Flor­ Father Patrylostressed , althotagh the Ukrainian Catholics are ence of 1439 some of the breadth of themes of far-reaching free to worship in the West, ioside the Soviet Union they are significance-for the Council of Florence had important ar­ persecuted. tistic, strategic, and scientific dimensions. Particularly rich were the contributions describing the official work of the Science and art ecumenical Council, which had the task of reunifying Chris­ Just as occurred in the context of the 1439 Council, the tendom after the Schism of nearly four centuries' duration two-day commemoration broadened its focus to treat the and bringing back into the fold some of the churches that major human concernsof the past and present. To summarize were physically as well as doctrinally more distant. the most striking of the many interventions: This aspect began with the opening remarks on May 5 by • Father Dario Composta of the Urbaniana Pontifical Cardinal Ciappi, who is from the Dominican monastery of University described the work of Bishop Antonino (later Santa Maria Novella in Florence where most of the working Saint Antonino) Pierozzi of Florence, a Dominican who did sessions of the Council were actually held. not take part in the Council, but was active in the city before Helga Zepp-LaRouche unfolded the "prehistory" of this and after 1439. Antonino developed the theological justifi­ Council by discussing the work of Nicolaus of Cusa at the cation for what we would today call "productive investment," Council of Basel, which opened in 143 1 and for which Cu­ distinguishing this from usury, and thus laying the basis for sanus wrote his firstma jor work, De Concordantia Catholi­ the development of modem capitalism. ca. Eventually the reigning Pope, Eugene IV, dissolved the • Prof. Francesco Premuda of the Engineering Depart­ Council to reconvene it in an Italian city in order to host also ment of the University of Bologna gave an inspired presen­ the Greekrepresenta tives. Because of his knowledge of Greek, tation of the "cold" fusion experiment recently carriedout by Cusanus was selected as a key memberof the delegation that Martin Fleischmann and Stanley Pons. He said that man is traveled to Constantinople and invited the Byzantine leaders concretely the product of DivineProvidence through the fu­ for what became the Council of Florence. sion process that generated the stars in the first place, and She laid special stress on the need to understand and apply hoped that so-called cold fusion may point the way to liberate in today' s world Cusanus 's concept of the imago viva Dei or mankind, especially in Third World countries, from the po­ man as the living image of God. litical combinations that now conspire against freedom. Pro­ Father Luigi Iammarone of the Seraphicum Pontifical fessor Antonio Vitale, director of the National Institute of University in Rome, paid tribute to one of the other heroesof Nuclear Physics, University of Bologna, and his colleague the Council of Florence, John Bessarion, the Metropolitan of Prof. Antonio Bertin, physics professor, University of Bo­ Nicea who later became a Catholic Cardinal, for devising the logna, who are working on experiments to test the "cold compromise formula that brought the Greeks and Latins to­ fusion" results, urged scientific rigor on such a subject and gether theologically on the question of the procession of the attacked the irresponsible mania of the media. Holy Spirit. Father Luca Kelati, the rector of the Pontifical • Mrs. Rita Matteuzzi, speakingfor the Italian Hunting, Ethiopian College, read the text of a beautiful letter written Fishing, and Environment Association, delivered the last of in 1440 by the Ethiopian Church declaring allegiance to Pope several speeches criticizing the pseudo-ecologist movement, Eugene IV. (In ensuing decades, the question of Ethiopian pointing to the commandment of Genesis to man to "be fruit­ Christians being true Christians became a very critical one ful and multiply, replenish the Earth and subdue it," as ex­ for bolstering the position of the anti-slavery current inside emplified in the activity of hunting. The Italian anti-hunting WesternEurope .) Father Giorgio Zabarian, the Procurator of lobby is not concerned about the environment, she charged, the Patriarchate of Cilicia of theArmeni ans, delivered a brief but rather about putting land into the control of the oligarch­ history of the impact of the Council of Florence in the Ar­ ical few, who can then charge exorbitant prices for its use. menian Church, which also declared its adherence to the She also pointed out the moml degradation of those who Council of Florence. defend the lives of all animals and are the same people who Father Michel Aoun, a Lebanese priest, added the history campaign for abortion of human babies. Dr. CorradoPerrone

38 International EIR May 19, 1989 gave an incisive polemic against the insane war by Italy's ence passed a resolution condemning Syrian actions in Le­ "Greenies" against plastics, while former Senator Noe, the banon and calling upon Western governments to take action vice president of the energy agency ENEA, spoke against the to kick out the Syrian force and restore peace to Lebanon. anti-nuclear campaign which is forcing Italy to become the only nation in Europewithout nuclear power . The LaRouche question • Prof. Lando Bartoli of Florence and Dr. Paulgerd Jes­ Webster Tarpley brought to a focus the burning question berg, an architect from Hesse, West Germany, delighted the that had been raised by many speakers at the conference: the audience, which included a contingent of about 100school­ barbaric imprisonment of Lyndon LaRouche, condemned to children, with their highly pedagogical presentations on Ren­ life in prison in the United States for political "crimes." aissance architecture. Dr. Bartoli is one of the world's experts Tarpley delivered greetings from Mr. LaRouche as well as on the BrunelleschiCupola of Florence , under which the Bull from six fellow prisoners, William Wertz, Edward Span­ of unity between the Greek and Latin Churches was pro­ naus, Dennis Small, Michael Billington, Joyce Rubinstein, claimed in 1439. He presented, with the aid of slides and a and Paul Greenberg. He also brought the greetings of Ro­ small model constructed by the Schiller Institute's Claudio chelle Ascher, sentenced to 86 years in jail for having solic­ Rossi, a discussion ofthe method of construction of the dome ited loans for political causes. without a supporting structure of heavy wooden scaffolding Because LaRouche has contributed so much to rediscov­ or a clay mold, by means of "herringbone" brickwork and ering the treasures of our civilization, as well as to the fron­ applying the principle of what were called "crests and sail" tiers of scientific and economic thinking today, his current construction, embedding the geometry of a spherical dome situation came up repeatedly during the proceedings. Senator within a nonspherical "pavilion" vault raised over an octag­ Vincenzo Carollo during his speech on the New World Eco­ onal base. nomic Order had raised a plea for reversing the injustice done Dr. Jesberg, editor of the review Baukultur, showed the to LaRouche, and this was the main theme of the contribution work of the 15th century artist Filarete, who commemorated by the French-Iranian historian Dr. Ali Mazaheri, professor the Council of Florence in his bronze doors for St. Peter's emeritus at the French Higher School of Social Science and basilica in Rome. Filarete became one of the great urban author of numerous books on medieval history. Dr. Bartoli designers of his day, author of a treatise that shows how cities cited his gratitude to Mr. and Mrs. LaRouchefor their enthu­ should be built for a higher level of civilization. siastic interest in his battle to save the Florentine dome of Brunelleschi, and expressed outrage at the jailing of La­ Present implications Rouche. Time did not permit the Schiller Institute seminar to fully Dr. Bruno Barosi, director of the acoustical physics lab­ address the strategic side of the Council of Florence, which oratory ofthe Cremona International Institute of Violin Mak­ was convened under the pressure of the urgent need to defend ing, praised LaRouche's initiating role in the campaign for Constantinople from conquest by the Turks: But the president returning to the standard tuning pitch mandated by natural of the Italian Schiller Institute, Fiorella Operto, pointed to law, in which middle C is set at 256 Hertz. the genocide nowoccurring in Lebanon at the hands of Syria AttorneyMirella Cece, president of the European Chris­ and with the complicity of particularly the U.S. as well as tian-Liberal Movement, delivered an impassioned plea to other Westerngovernments , as the parallel issue that must be participants to work for the freedom of LaRouche and his addressed today, as "the failure to defend Constantinople was associates, a fightin which she is personally playing a leading the great error of that time. " role in Europe. The conference heard two appeals on Lebanon: Dr. Vic­ Tarpley stressed that under the present conditions of the tor Trad, of the Foundation of Social Solidarity, who detailed failure of perestroika and the eruption of revolutionary fer­ the currenthorrors in Lebanon, particularly against the Chris­ ment throughout the Soviet bloc, the Russian empire is more tian population; and Dr. Alfredo Jalife, of the Lebanese Ma­ dangerous than ever. LaRouche's leadership, and the rever­ ronite community of Mexico, who linked the policy in Le­ sal of the trend to fascism in the United States, are therefore banon to a series of what he called "hoaxes": the hoax of so­ more urgent than ever. called ecology, the hoax of perestroika. the hoax of Kissin­ Helga Zepp-LaRouche called upon participants to reflect ger's Trilateral Commission, and the hoax of Bush adminis­ on the contents of the conference in order to draw internal tration foreign policy based on imposingcrippling debt upon strength for the tasks ahead. "Putting Lyn in jail with drug its Ibero-American allies. The double standard in Washing­ pushers is not a reflectionon Lyn, but it says something about ton goes far beyond the Lebanon policy per se, Jalife empha­ the United States," she said, referring to her husband. By sized. He blasted the alliance between the "satanic Trilateral" imitating Christ, as we have learned from this conference, of the Middle East, made up of Assad, Qaddafi , and Khom­ we can findthe strength that will make it possible to free him eini, and the WesternTrilateral Commission. and to defeat the openly Satanic forces which are organizing At the prompting of Helga Zepp-LaRouche, the confer- for evil, the Schiller Institute founder said.

EIR May 19, 1989 International 39 Mainland China explodes; Can the nation be saved? by Mike Billington

The People's Republic of China (P.R.C.) in April and May ternational bankers who are moving in (see EIR April 14, has been swept by the largest social upheaval since the chaos 1989, "Mainland China Takes the IMF Road"). The deci­ of the Cultural Revolution before Mao's death. The world's sions being made in the West, in Moscow, and in Taiwan TV screens and front pages carried scenes of over 100,000 will determine whether anyone will respond to the question: students marching through Beijing and into Tiananmen Square "Who will save China?" before the Great Hall of the People. Along the route of the march, over half a million Beijing citizens cheered on this The vultures move in unprecedented breach of Communist rule, while posters and As EIR has documented repeatedly, the "New Yalta" banners openly attacked the governmentand the Communist policybeing implemented by the Anglo-Soviet elite and the Party. Although published commands from government Kissinger group in the Bush administration is leaving Asia to leaders threatened harsh repression, thepolice and army forces the Soviet "sphere of influence." Increasingly, the U.S.­ deployed to stop the marchers offered no resistance beyond Soviet condominium pursuing this New Yalt seem to have "locked arm" lines which were easily and repeatedly pushed agreed that China should be left politically destroyed and aside. economically picked apart in, a manner similar to its 19th­ While the situation is extremely fluid, with forces within century dismemberment and destruction by the combined and without China deploying their assets in various direc­ WesternPowers . tions, one reality determines the environment in which the The April 21 Financial Times of London reported the crisis is unfolding: China is undergoing a massive internal crisis not as a disaster, but as a time of great "optimism" for economic breakdown which threatens the lives of hundreds achieving two goals: 1) breaking down the central govern­ of millions of people. ment into competing regions, and 2) imposing Westernbank­ An internal leadership struggle hasbeen developing over ing control. the past six months, since Premier Li Peng emerged as the The Financial Times admits that this is "China's most public director of a "forced austerity" regimen, largely over­ ominous period," and that "clouds are gathering around Pe­ turningthe 10-year "reform" program of Deng Xiaoping and king in a manner unseen since the last days of the Chiang Party Secretary Zhou Ziyang. Deng, who remains head of Kai-shek regime in 1949." The reform didn't work, they the military and senior statesman, has been a target of the report, because of the lack of an "efficient banking system," students' attacks along with Premier Li Peng, because of his and the retrenchment will fail for similar reasons. This social hard line against the dissident "free speech" movements of crisis, combined with the economic breakdown, is the chance the past four years. Deng is also blamed for allowing the for "the lawyers, accountants, moneymen, and tax specialists downfall of the leading liberal reformers. . . . to run a modernizingeconomy ." Hu Yaobang, whose death and funeral sparked off the Further grounds for "optimism" for these would-be Tai­ student demonstrations, was dumped as head of the Com­ pans who look back with longing to the 19th-century opium munist Party in 1986 by Deng under pressure from the party trade concessions, is the "fragmentation of the Middle King­ leaders, who held Hu responsible for the protest movement dom, starting to overshadow the leadership's thinking." The that erupted at that time. His replacement, Zhou Ziyang, provinces of the south and east, says the Financial Times, continued the economic liberalization until the breakdown where the "free trade zones" were established under the re­ last year led to Li Peng' s "retrenchment." The students de­ form, are beginning to "simply ignore the center's instruc­ manded the rehabilitation of Hu's policies, and by implica­ tions." A breakdown into autonomousregions "might prove tion, supported Zhou against Li's retrenchment. an easier and more effective means of running this vast coun- But while the demands and banners are focused on dem­ try." ocratic rights of free speech, anti-corruption, and the educa­ tion crisis, the fundamental issue is the threat to the power of The Soviet 'concession' the government to implement the bone-crushing austerity Another factor affecting the crisis atmosphere is the May being demanded by all the leadership factions-and the in- 15-18 visit to Beijing of Soviet General Secretary Mikhail

40 International EIR May 19, 1989 Gorbachov, to fonnallyreestablish Sino-Soviet relations aft­ economic issues in their slogans-an end to inflation, un­ er 30 years. The massive Sino-Soviet border has been trans­ employment, and also an attack on the government's granting fonned from an armed front into a series of barter trade of "concessions" on Hainan Island, which they denounced as centers, and the Soviets aremoving into the Hong Kong-style a return to 19th-century capitulation to foreign powers. The "Special Economic Zones" in league with Western nations. government firedthe editor of the Shanghai World Economic The chief of the Amsterdam police has already identifiedthe Herald and seized one issue for breaking the gag order. This Beijing-Moscow flights as the newest expanding route for spurredthe demand for free press, and 150 workers from the the bumper heroin crop from the China-BunnaGolden Tri­ official paperXinhua joined the marches. angle, and an overland "container bridge" using trains, trucks, Gen. Teng Chieh, a senior statesman of the Kuomintang and ships across Siberia is rapidly replacing the ocean routes on Taiwan, whose book A Total War Strategy Against Peking to Europe. was recently published in English translation (see review, The British press has triedto portray the student demon­ page 57), argues that the key to liberating the Communist strations as part of the international"Gorbyma nia." The Far mainland and returningto republican governmentlies in the East Economic Review, published by Dow Jones, ran a cover historical fact that the myth of Communism's capacity to story on the demonstrations called "China: Demand for Glas­ save China now stands exposed. While 100 years of civil and nost." The much ballyhooed "election" of Moscow's Boris imperial wars leftthe Chinese people in the 1940s vulnerable Yeltsin was praised in the Chinese Central Committee's Xin­ to the hope that Communist dictatorship would save them, hua daily as follows: "Yeltsin, who has enjoyed a reputation the vast majority of the mainland is now anti-Communist. for speaking out and has been at odds with the Kremlin's The potential to mobilize that mass sentiment is now a visible number-two figure, Yegor Ligachov, campaigned for more reality on both sides of the Taiwan Straits. It is this cultural democracy and an end to privileges for the government and warfare that will detenninethe dire�tion of the crisis. party elite. During the campaign, thousands of Muscovites The current government in Taiwan, however, under the gathered at rallies to voice their support for him." intense pressure of U.S. trade war policies, is deserting the As this precisely describes the demands and actions of economic policies that built the island republic into a world the student dissidents, those in the government who printed economic power, while also accommodating to the refonn this appear to want to channel the student fennent in a pro­ policy in the mainland (see EIR , May 5, 1989, "The R.O.C. Soviet direction as Gorbachov's arrival approaches. Must Not Go Down the Tokyo Road"). Such a policy could neutralize the potential for Taiwan to intervene to save the The role of Taiwan mainland from the pending disaster. The student demonstrations intersect an estimated 100 million construction and small industry workers now wan­ Fang Lizhi dering the nation in search of employment, and a peasantry Although the students are avoiding naming any of the which is turningto physical resistance to party cadre respon­ well-known dissidents for fear of government retaliation sible for collecting the grain tax, as grain production contin- . against them, it is widely recognized that they took moral ues its fiveyear decline amidst rampant inflation. Anti-Com­ direction from the intellectuals led by astrophysicist Fang munist Party posters and banners were common in the dem­ Lizhi, who mobilized over the past six months for free speech onstrations. The primary concern of the government and and for amnesty for political prisoners. The government's partyleaders was to prevent the linking up of the workforce State Council has named Fang and the U.S.-based Alliance with the students. To that end, the Beijing Municipal Gov­ for Democracy as among those responsible for the unrest, ernment issued orders to all factories in the city forbidding and implied that there would be art'ests, but not "too soon." workers to take leaves of absence between April 25 and May That Fang is aware of the cultural issues involved was 5. (May 4 was correctly expected to be a day of mass dem­ demonstrated in an interview he granted to the Hong Kong onstrations, as it was the 70th anniversary of the 1919 dem­ Cheng Ming April 1. He describes the CPC leaders as "old onstration by Beijing students against the Versailles Treaty's veteran soldiers who fought the battles and siezed state power transfer of Gennan concessions in China to the Japanese. for the party. They perfonneddeeds of valor, but their minds This rally launched the May 4th Movement, which sparked are full of feudal ideas and do not understand democracy and the nationalist revolution.) democratic politics at all. Leaders in their 60s were trained The movement did in fact establish connections across in the Soviet Union and Eastern Europe when they were the country and among workers . While tens of thousands of young. None has personal experiencein Western democratic workers cheered the marching students in Beijing, in Shang­ politics. Scholars and students who have received education hai the authorities expelled hundreds of thousands of the in Europe and America learn much about the essence of "floatingpopulation" -the new army of unemployed-from democratic politics, but most of them are not willing to return the city to prevent them fromjoining , according to the New to China, or were not appointed to leading positions because York Times. The 6,000 students who rallied there included the CPC feared their democratic ideas."

EIR May 19, 1989 International 41 Iran's President by the fall of this year, as well as to become the chairman of the Council of Experts which is now set to rule the country after Khomeini's death. What are the Soviets getting from Rafsanjani in return? Certainly they are in a position to obtain major concessions : not only from him, but also from otherIranian leadert . Ulti­ mately, those who best meet their conditions, will receive their support. For Moscow to play a "Rafsanjani card,"does Iran's Rafsanjani not mean that the Kremlin is curtailing ties with other fac­ tions, especially with Interior Minister Ali Akbar Mohtash­ is going to Moscow emi. As a result of this game, the Soviets are successfully sponsoring a radicalization of the Iranian regime, including a forced reconciliationbetween Mohtashemi and Rafsanjani. by Thierry Lalevee The erstwhile "moderate," Rafsanjani, sounded more like Mohtashemi when, on May 5, he advocated that for each Barring last-minute changes, Iranian Parliamentary Speaker Palestinian killed in the Israeli Occupied Territories, the Pal­ Ali Akhbar Hashemi Rafsanjani should be making his pil­ estinians should kill five citizens of France, America, and grimage to Moscow in the coming weeks . Planned for many Britain. Normally, that would have been a bit much for Raf­ years, this visit will be the first by a high Iranian official to sanjani. It took a May 2 meeting between himself and Khom­ the Soviet Union since 1979, and will represent a turning eini, as well as with the leadership of the Lebanese Hezbollah point in relations between the two countries. terrorists, to convince him that there was no alternative to The first dramatic step occurred in late February, when uttering such threats, in order to consolidate his internal po­ Soviet Foreign Minister Eduard Shevardnadze arrived in sition. Teheran and became the firstfore ign dignitary to be afforded The dynamic can be seen from the spy mania unleashed an audience by Ruhollah Khomeini in nearly eight years . since the April 21 speechof Rafsanjani , where he announced Since then, delegations have been flying between both capi­ thatan American spy ring had been dismantled. Rafsanjani's tals, with wide-ranging economic and industrial agreements statement obviously represented a good will gesture to Mos­ signed. In the last week of April, the Iranian-Soviet Econom­ cow, indicating to the Kremlin that he was ready to sever his ic Commission met and set into motion a series of deals Western connection. Yet, it is also likely that Rafsanjani's which, according to the official announcement, "will be rat­ sudden anti-Western posture represents a preemptive move ified during Hashemi Rafsanjani 's visit. " against furtherrevelations about his negotiations withWash­ The emergence of this close relationship between Iran ington during the Iran-Contra arms negotiations-especially and the Soviet Union heralds the total failure of the U.S. as declassified documents are now flooding Washington in "arms for Iran" policy initiated by Jimmy Carter and followed the wake of the Oliver North trial . by the Reagan administration as an attempt to woo suppos­ edly "moderate" mullahs. It also indicates that for Moscow, Purges in Iran the strategic importance of Iran overridesthe potential danger Intelligence sources report that the Iranian-Soviet con­ that a Moscow-Teheran axis could upset the thaw between solidation has been the result of several months of consulta­ Moscow and Washington. If Moscow can strike a decisive tions among Moscow, Teheran; and East Berlin. The East victory in Iran, even at the price of destabilizing the region Germans are , in particular, reportedto have played a crucial and its agreements with Washington, it will do so. role in channeling documentation alleging that a group of The strategic importance of Iran for Moscow is also "American spies" within the government and the Army were underlined by the kind of economic agreements being rati­ operating through the West German embassy in Teheran and fied. In the medium and long term, they will pave the way U.S. intelligence centers in West Germany, especially for an integrated economic and, especially, energy integra­ Frankfurt and Wiesbaden. Whatever the truth of Iran's rev­ tion between Iran and Moscow's southern Muslim republics, elations about the "spies," the scandal has had two carefully with Iran meeting the energy demands ofthe entire Transcau­ planned political consequences.' casus and Central Asian regions. Inside Iran, it has led to a purge of any elements within the government who could be ' considered "pro-Western." The post-Khomeini power struggle Especially hit have been those functionaries who have been The Soviets are emerging with what no other power has in constant negotiations with the West over political and so far: an ability to influence the post-Khomeini battle for economic issues. A purge is also under way within the armed power in Iran . Rafsanjani's visit to Moscow will enhance his forces. Up to 1,700 officers and other personnel have been position as primus inter pares, both in his drive to become arrestedor interrogated-which:serves to strengthen the hard

42 International EIR May 19, 1989 is the partition of Lebanon between the Syrian and Israeli influences, with the approval of internationalpowers . But an unveiledplot is no longer effective. The Arabs and the world have their attention on the Lebanese dossier. From Aoun exposesplot now on we will bepa tient and resistant. to partition Lebanon 6) The port issue is no longer an important one, now , that the Syrian presence and the eventuality of a Syrian withdrawal are clearly considered. We also have similar This statement was released by Lebanese Prime Minister demands to discuss with the Arab envoys, s uch as Halate Gen . Michel Aoun's offi ce. fo llowing a press conference airport. at his headquarters on May 2. 7) The Syrians have always tried to push us into the Israelis' arms, to use this as a pretext with the Arabs for 1) Prime Minister Aoun favors diplomatic means to the occupation of Lebanon and the Syrian brutal military continue the liberation efforts. He will cooperate with the reactions to any Lebanese resistance stand. Both Syrians Arab [League] initiative, but if it fails he will use other and Israelis agree upon occupying Lebanon. The Arabs alternatives. The. military means is never a goal in itself; will have to go to the U.N. to get the Israelis out, but they it had theeff ect of attracting the world's attention. have firstto get the Syrians out. 2) The Syrians blockaded the legal portsof Beirut and 8) I always attacked the U.S. administrations, but lounieh to put the free Lebanese areas under siege. We never the Americanpeople . The U.S. is a superpowerand never closed the legal portsof Sidon andTripoli and Tyre. has a responsibility, because it leads the free world, and All we did was to apply int,ernational and Lebanese laws. because we are part of the free world, we expect the Moreover, the Syrians blockaded the land passages supportof the U.S. betweenliberated are as and Syrian-occupied areas. We have the right to see our political and human rights 3) As a citizen whose country is occupied, I have the supported by the U.S. and we have the right to influence

core of the regime, the Pasdarans (Revolutionary Guards). way to corner Iran into a lonely relationship with the East This has reopened the proposal originally sponsored by the bloc countries. Hence, the West German Embassy in Teheran Pasdarans for dismantling or neutralizing the regular armed has been denounced as a "nest of spies" by the Iranian me­ forces, within the context of the upcoming constitutional dia-a characterization last used in reference to the U. S. reforms, set for late summer. Embassy in Teheran in 1979, when the U.S. hostages were Internationally, Iran is becoming further isolated. Espe­ seized there. On April 25, Mahmud Vaezi, the director of the cially hit is the connection to West Germany, which has European and American department of the Iranian foreign traditionally been the major Westernoutlet for Iranians of all ministry , traveled to Bonn to announce that as a result of factions. That relationship has survived many crises, allow­ Bonn's behavior during the Salman Rushdie affair, as well ing the Iranians to keep an open window to Europe and the as Bonn's relations with the "spies," Teheran was going to United States. The closing down of that connection is one drastically curtail its trade relations with Germany.

EIR May 19, 1989 International 43 seek the destruction of all strong national institutions throughout WesternEurope, on the other. In this respect, the Dutch governmentfo llows th�t of Belgium, where the Chris­ tian Democrats are in a coalition with the Socialists. Dutch government This trend was expressed by a European member of the secretive Bilderberg Society, who ridiculed the NATO mis­ coalition falls sile modernization debate as "very stupid, a fixationon tac­ tical ends." "Let's think on the grand strategic plane," he by Our Correspondent said. "The issue is, we have won the Cold War ...who can win the peace?" Quoting from the memoirs of the late Euro­ pean federalist Jean Monnet on the importance of transcend­ Following a vote of no-confidenceon May 2, the Netherlands ing the nation-state and moving toward "the organized world right-of-center governmentof Prime Minister Ruud Lubbers of tomorrow ," the source added, "What Gorbachov has done fell. The crisis was precipitated by a split in the ruling coali­ to Europe, and what some people in Washington don't un­ tion of the Liberal and Christian Democratic parties. Queen derstand, is that the long-term plan has become possible. Beatrice has called for new elections on Sept. 6, openingup Status quo politics have become totally insufficient." He the possibility of a "Grand Coalition' between the Labor cited George Kennan, Paul Nitze, and Lloyd Cutler as three Party and the Christian Democrats. U.S. co-thinkers. On the surface, the current crisis was initiated by the The above assessment is currently embraced by not a few Liberal Party, the junior coalition partner, over a proposed Liberal Party members. One Liberal Party member, Jan Derk tax increase to finance an ambitious environmental program Blaauw of the Foreign Affairs Commission, while quick to proposed by the Lubbers government. But, as one European deny that foreign policy questions had anything to do with observer said, "You don't bring down a governmentover the the government crisis was quick to agree with the above issue of auto pollution." The more fundamental issues in­ assessment. "I agree," he said. "The Cold War is over. In volve the realities of Europe since the signing of the Inter­ fact, I helped draft the Liberitl Democratic Reform Caucus mediate-range Nuclear Forces (INF) treaty , the move toward Policy for the European Parliamentarian Elections, calling American disengagement from Europe, Gorbachov's "Com­ for the inclusion of the French and English independentnu­ mon House of Europe" propaganda drive, and the "Europe clear deterrents in arms negotiations." Inclusion of the French 1992" integration scheme. and British nuclear forces in East-West talks would strip the Prior to the dissolution of the government, conservative last figleaf from the idea that a credible European nuclear and pro-NATO circles in The Hague were attempting to deterrent exists. grapple with a post-INF political climate that saw the United The Dutch Liberal Party is part of the Liberal Internation­ States pushing West Germany onto the path of neutralism, as al of which the German Free Democratic Party (FOP), a the issue of short-range missile modernization erupted. In principal promoter of Gorbachov's "Common House of Eu­ fact Lubbers, who still heads a caretaker government,arrived rope," is a member. Although the Dutch Liberals are consid­ in Washington, D.C. on May 8, and held talks with President ered to be to the right of their German colleagues, the gap Bush, hoping to play the role of mediator in the Lance missile appears to be closing and it � known that the FOP's Hans­ controversy. The view of such circles is that the specter of a Dietrich Genscher, West GerJnan foreignminister and a pro­ German coalition between the Social Democratic Party and ponent of Gorbachov's "Collnmon House of Europe," has the Greens would present Europe with a disaster, the prospect good relations with many of his Dutch colleagues. of a Grand Coalition only less so. The prospect of a neutralist The other issue under the surface is Europe 1992. The West Germany without U. S. troops is something to be avoid­ Liberal Party's decision to bring down the governmentis said ed at all costs. to have been the result of a rift between the parliamentary As one of the more stable, conservative-leaning coalition caucus and the Liberal ministers in the cabinet who were governmentsin Europe, the Lubbers governmentwas orient­ accused of doing everything the Christian Democrats asked ed to status quo policies. But now, with the prospect of a of them. One of those was Minister of Transport Neelie Smit­ Grand Coalition emergingin September, all that has changed. Kroes, who has voiced reservations on the effect of the pro­ posed Europe 1992 deregulation on the Dutch transport sec­ Weak coalitions tor. This would conform to the trend throughout Europe to­ New party programs will not be forthcoming until after ward weak coalition governments that serve to undermine the June 15 elections for the European Parliament. A left-of­ any institutional resistance to a "New Yalta" policy, the cur­ center government between the Christian Democrats and the rent operational policy of the Kissinger crowd in Washing­ Labor Party is a real possibility, while also a Labor Party­ ton, on the one hand, and the "Europe 1992" hardliners who Liberal coalition cannot be ruled out.

44 International EIR May 19, 1989 Council for Anns Control, a group of influentials from the academic, church, diplomatic, and political communities, founded in 1981. However, the conference is officiallybeing held on behalfof Greenpeace, the ecologist-terrorist group which has openly evolved into an asset of the Soviet Union! The idea for the conference came fromGreenpeac e-U.K. 's "Nuclear-Free Seas" program. Greenpeace leaders ap­ proached the Council for Anns Control, asking that it organ­ ize a conference on the above-stated theme, and claiming that Anglo elite woos establishing the infrastructure for such an event was beyond Greenpeace's capabilities and resources. The Council hap­ neutralist admiral pily obliged. One Council source called this a "contractual arrangement with Greenpeace." by Mark Burdman This places some of the senior figures of the British po­ litical and military Establishment in bed with Greenpeace. Council chainnan General Sir Hugh Beach was fonnerly West Gennany's Adm. Elmar Schmlihling, an outspoken director, Anny Staff Duties, in the British Ministry of De­ advocate of pulling American troops out of West Gennany fense. He is reportedly intimate with the pro-Soviet hierarchy and of a neutralist option for the Federal Republic, is being of the Church of England, centered around Archbishop of cultivated at the highest levels of the Anglo-American Estab­ Canterbury Robert Runcie. Other members of the Council lishment. This is the same Establishment which is so ob­ board include fonnerForeign Secretary Denis Healey (of the sessed these days with bashing the Gennans, ostensibly for Labour Party); Lord Mayhew; Bishop Hugh Montefiore, not doing enough for the Western alliance. prominent in the Church of England hierarchy; John Roper Schmlihling, an active-duty admiral who is the director of the Royal Institute; Sir Sigmund Sternberg; and fonner of the Office for Studies and Exercises of the Bundeswehr, English-Speaking Union Alan Lee Williams (now at Toyn­ spoke on April 29 at a policy forum in Washington, D.C., bee Hall in London). where he was the guest of William Colby, fonner headof the The May 18 event in London would not be the first time U. S. Central Intelligence Agency. Schmlihling has been caught working with the Greenpeace On May 18, Schmlihl­ fanatics. During the month of April, he attended a conference ing is scheduled to be one in Denmark, at which a campaign was launched to stop the of the speakers at a seminar U.S. battleship Iowa, equipped with nuclear-tipped cruise at London's Royal Society missiles, from entering the Baltic Sea in June of this year, to of Arts . The event is a "Na­ join NATO maneuvers there. At this conference, Schmlihling val Anns Control Confer­ personally denounced the planned presence of the ship in the ence" on the theme, "INF Baltic. Following the conference, a senior commentator for at Sea?" Among those the left-radical newspaper Information, Jiirgen Dragsdahl, scheduled to join Admiral wrote an editorial April 12, warningthe Iowa against coming Schmlihling on the podium into the Baltic and endorsing Greenpeace's Nuclear-Free Seas are Adm. Sir James Eberle, Adm. Elmar Schmiihling program. Dragsdahl explicitly called on Greenpeace and af­ director of the prestigious filiated groups to do whatever would be necessaryto stop the Royal Institute of InternationalAffairs (also known as Chath­ Iowa's deployment. am House); John Lehman, fonner U.S. Navy Secretary; Vla­ Coincidence or not, this campaign began only a few days dimir Kulagin, deputy head, Research Coordination Center, before the Iowa's No. 2 gun-turretblew up off the coast of Soviet Ministry of Foreign Affairs; Jan Prawitz, Special As­ PuertoRico on April 19, killing 47 U. S. sailors. Schmlihling sistant for Disarmament to the Swedish Minister of Defense; was asked at a press conference in Washington, D.C. on U.K. Rear Admiral J.R. Hill, editor of Naval Review; and April 29, "If it were discovered that the explosion was the William Arkin of the Washington, D.C. Institute for Policy result of sabotage, would you regret the fact that your remarks Studies. might have contributed to that incident?" The admiral re­ plied, "Since it is a hypothetical question, I will not answer In bed with Greenpeace it." But he did admit that he had spoken out against the lowa's The May 18 event marks a new departure in British liberal participation in the Baltic maneuvers. "I didn't think it was a Establishment activity, beyond the fact that the neutralist good idea to have a nuclear-armed ship showing up in this Admiral Schmlihling is being so prominently featured. Offi­ area, when the West Gennans are trying to talk about nuclear cially, the conference is being sponsored by the U.K.'s disarmament," he said.

EIR May 19, 1989 International 45 Report from Bonn by Rainer Apel

Germans fear U.S. strategic reversal Reykjavik summit betrayal of the pre­ The word here is that behind U.S. threats against Germany, lie vious U.S.-German agreement on such talks; 2) the suspicion that the United plans to liftthe nuclear umbrella fromEuro pe. States doesn't want a longer-range follow-on system to the Lance, nor a ' modernized Lance either, but is only Sit here right next to me. But I Post feature appearing three days after seeking a noisy pretext to justify their warn you, it is very dangerous, be­ the Vernon Walters interview at­ own troop withdrawal; 3) the certainty cause I have toppled numerous gov­ tacked the Germans as the eternal that Washington secretly decided, ernments, you know." These were the troublemakers of international poli­ without consulting the West Germans words U.S. Ambassador to West Ger­ tics, having no national identity other (but in agreement with the Soviets), many Vernon Walters used to greet a than a special crime record in politics. on a dramatic change of their strategic journalist of Bild am Sonntag, Ger­ The Washington Post declared the doctrine for Europe. many's largest Sunday tabloid, who Germans the prime "enemy image" of "The review of the strategic doc­ had come to interview him for the May U.S. policy. trine which was recommended by the 7 issue. "This is not the way an essential Ikle-W ohlstetter Report has already Walters warned the West Ger­ ally of the Americans like the Ger­ become U.S. operational policy," the mans that "the isolationists on our side mans is to be treated," Alfred Dreg­ source said, referring to the 1988 re­ are getting active again." He said that ger, the chairman of the parliamentary port ofthe President's Commission on without the modernization of the short­ group of the Christian Democrats in Integrated Long-Term Strategy, which range Lance nuclear missile, U.S. Bonn, angrily responded recently. said that the idea of aU. S. nuclear troops in Germany would be unpro­ Dregger reminded the United States umbrella over Western Europe was tected against a Soviet conventional that President Reagan and Chancellor obsolete. "That is the way they think, attack and would likely be pulled back Kohl had originally agreed to have now. They don't want to keep the to the States. U.S. talks with the Soviets on the In­ States in the partnershipof nuclearrisk The ambassador was not the only termediate-range Nuclear Forces (INF) with us Germans anymore." one to threaten troop withdrawal. Also in Europe, with the aim to achieve a If the U.S. were really interested on May 7, Rep. Les Aspin (D-Wisc.), common ceiling on these systems on in keeping this deterrence, they would chairman of the House Armed Ser­ both sides of the Iron Curtain. But then, offer a longer-range follow-on system vices Committee, said on ABC-TV, Dreggerremarked in an interviewwith to the L�nce, preferrably an air­ "The issue of no-nukes, no-troops the Suddeutsche Zeitung May 5, the launched stand-offmissile with which starts to get into the forefront. It is a Reagan administration broke its NATO COUld reach rear echelonWar­ danger. It's not this year, but I could agreement with Kohl, and signed a saw Pact bases and Soviet territory. see it down the line." On the same "zero option" for the INF category, The complete removal of the land­ program, U.S. Secretary of Defense "instead of the mutually agreed-upon based INF missile category, which had Richard Cheney warned: "We do not common upper ceilings. " this capacity, was a clear warningsig­ foresee a set of circumstances in which This, Dregger said, "is the cause nal that the U. S. wanted to "pull out you would have U.S. troops deployed of the current problems the alliance is from the risk," the aide said. All the in Western Europe, where you would faced with, and we've predicted that. " German-bashing, he added, is intend­ not also have as a significant compo­ The opposition Social Democrats ed to make the change of strategic doc­ nent of deterrent, short-range nuclear are mocking pro-U. S. Christian Dem­ trine complete. forces. That's a fact of life." ocrats like Dregger for being "so naive Fears are increasing in Bonn now, The message from Washington is about the U.S., which has long opted in connection with reports that Presi­ simple: If you West Germans don't for a differentcourse . " dent George Bush will soon proclaim agree with nuclear modernization, we In a discussion with a representa­ a new doctrine for Europe. Rumors will pull our troops out, and you'll be tive of this magazine, an aide of Dreg­ have it that he wants to tumthe NATO blamed for it. ger's in Bonn said that the current re­ 40th anniversary summit in Brussels The conflictgoes beyond a dispute sistance of the Kohl government is on May 29 into a forum for the "re­ over weapons systems. A Washington sparked by three motives: 1) the 1986 structuring of European affairs."

46 International EIR May 19, 1989 From New Delhi by Susan Maitra

Toward 'local self-government' ati for women and members of sched­ Rajiv Gandhi's decision to grant 'panchayati raj, ' or local self­ uled castes at all levels and all over the country. government, hasfar-reaching implicationsfor India . And as Rajiv Gandhi has himself emphasized repeatedly, the fact that no more than one out of every ten ru­ pees for poverty alleviation reaches the hands of the poor is a thorough indictment of the present state of af­ At a conference of state chief min­ taken together with the May 1 launch­ fairs . isters in the capital May 5, Prime Min­ ing of a massive $1.4 billion rural em­ Though panchayatis had been in­ ister Rajiv Gandhi spelled out the gov­ ployment scheme in honor of Jawa­ . troduced in some states prior to 1940, ernment's resolve to move decisively harlal Nehru to provide a job to at least it wasn't until the Community Devel­ to resurrect the mostly moribund in­ one person in each of the 44 million opment Program in 1952, that the con­ stitutions of local government families estimated to be living below cept was seriously taken up as a vehi­ throughout the country, the village the poverty line, the panchayati initia­ cle for development work as well as panchayati raj institutions, or govern­ tive can be fairly said to have pretty self-government. But, despite the ing councils made up of five elected much sewn up the coming general launching of a " new era" for the pan­ officials. A kind of village communal election for the ruling party . chayati raj institutions by Prime Min­ system that has existed for centuries Ironically, it has only been in the ister Nehruin 1959, and again in 1977- in the subcontinent, panchayati raj was opposition-ruled states of West Ben­ 79, when it became the subject of a embraced by Mahatma Gandhi during gal and Kamataka that the panchayati central government study and new the freedom struggle as the appropri­ institutions have retained their clout. recommendatiQns for its revival were ate vehicle for self-government in in­ Opposition politicians fear that the issued, little or'nothing ensued. dependent India. But, placed under the ruling party seeks to use the panchay­ A committee under economist states' jurisdiction, they were gradu­ ati system against those state govern­ G.V.K. Rao, �pointed in 1985, has ally eclipsed. Now, a constitutional ments and as a voteback machine for recommended that a three-tiered pan­ amendment to strengthen the pan­ itself, but the more interesting effects chayati raj system (at village, block, chayati system will be introduced in may well be in shaking up the baronies and district levels) be revived nation­ the current session of Parliament for in states ruled by the Congress-I party, ally, with regular elections, and that debate and discussion prior to passage where the panchayati have been the district (With a population of in the late summer monsoon session, squashed. 100,(00) be the basic unit for policy Mr. Gandhi announced. Though the proposed constitu­ planning and implementation. In 1986, Though it shouldn't have been a tional amendment has not yet been another committee made further rec­ surprise-at the PM's insistence "de­ made public, it reportedly contains ommendations. Two more working centralization" has been a major con­ four provisions. First, the panchayati groups have studied the matter, in ad­ cern in the Eighth Plan formulation, raj institutions would be moved from dition to the atlministration's grass­ and he himself has been discussing it the state list to the "concurrent list," roots workshops with both adminis­ in "grassroots" forums; opposition implying both state and central juris­ trators and with currentpanchayati of­ chief ministers, and the opposition diction over their functioning. Sec­ fice-holdersover the past several years. generally, were apparentlytaken aback ond, funding would be transferred Presently the panchayati raj insti­ by the government's resolve to move from the states to the national Finance tutions vary greatly from stateto state, swiftly. Commission (which determines cen­ though they do exist in some form al­ Without doubt, the move-which tral allocations to the states) for issue most everywhere. In most instances, will end the states' control over the of statutory awards. Third, regular the village pahchayatis have some panchayati institutions and establish a panchayati elections will be mandated nominal power' to tax . But in many direct link, financial and otherwise, under the direction of the National areas they were long since taken over between thelocal governing bodies and Election Commission instead of the by local landlords or other powerful New Delhi-will have a potentially states. And fourth, a uniform policy interests and ceased to represent the enormous electoral impact. Indeed, of reservation of seats on the panchay- whole population's interests.

EIR May 19, 1989 International 47 Dateline Mexico by Isaias Amezcua

Sonora narco-politicos falling? cousin is Emilio Azcarraga, thepres­ The "citizens above suspicion" are suddenly scrambling to cover ident of Televisa. On April 21, the federal Attorney up their ties to the dop e mob. General's office revealed that traffick­ er Felix Gallardo owned 52% of the stock in Plaza Mexico, the enormous shopping center in Guadalajara con­ In the aftennath of the captureof dope "El Negro" Durazo , currently sit­ structed and "owned" by Valenzuela. mobster Miguel Angel Felix Gallardo ting in a Mexico City jail, during his Former Hermosillo mayor Robles in Guadalajara, Jalisco April 8, panic heyday was closely linked to the so­ is also tied to Sonoran Attorney Gen­ has begun to set in among some of the called Puebla Group of financiers eral Sostenes Valenzuela Miller. Val­ mob's political protectors in high through his vast investments in the ho­ enzuela Miller helped Robles commit places. Exemplary is the northwestern tel and tourist industry. The Puebla his electoral fraud when, as mayor of state of Sonora. Group is centered aroundthe Televisa Ciudad Obregon, he illegally sent more In late April, Carlos Robles Lous­ media chain, many of whose luminar­ than 100 people into Hermosillo to tenau, mayor of Hermosillo, Sonora, ies have recently been accused of in­ guarantee Robles's election. Valen­ requested a "temporary" absence from volvement with the narco-Satanicring zuela Miller is in turn linked to Felix his post for the ostensible purpose of revealed in the Matamoros atrocities. Gallardo's brother, drug traffickerJose disproving the accusations of electoral Similarly well known areRobl es's Luis Felix Oallardo , who made vast fraud made against him by the Attor­ extremely close ties to the group real estate investments in Ciudad Ob­ ney General of the Republic. Shortly around former Hermosillo Mayor Al­ regon when Valenzuela Miller was thereafter, Robles, known as "El Cal- icia Arellano de Pavlovich Sugich, a mayor. 010," tried to escape the country. An friend of Durazo Moreno and the pro­ Robles has also been mentioned arrest warrant was issued for him on tege of financier Arcadio Valenzuela. for having links to noted drug traffick­ April 26. It is said that Valenzuela influences er Jaime Figueroa Soto, currently fac­ The fall of Robles Loustanau does the office of the Sonora governor ing 40 criminal counts against him by more than clean up election fraud, through secretary Arce Caballero, his the Arizona state prosecutor. Robles, however. It also marks the beginning former employee. as Sonora Attorney General, report­ of a cleaning out of the extensive in­ Valenzuela, as EIR has amply edly interceded in Figueroa's favor fluence of the drug trade in Sonoran documented in previous articles, is tied when the latter was arrested on a mi­ politics. Robles L. leads straight into to the Felix Gallardo drug trafficking nor infraction. the entire corrupt political network band in a number of ways. In June Sonora Gov . Felix Valdes at­ around Sonora Gov. Rodolfo Felix 1985 , the chief of Mexico's narcotics tempted to mask his administration's Valdes, including Sonoran secretary police, Florentino Ventura, arrested cozy relationship with the drug traf­ general and president of the State Guadalajara businessmen Eduardo and fickers by calling on April 19 for a Electoral Commission Francisco Al­ Javier Cordero Stauffer for the laun­ "social alliance" to combat drug traf­ dana Montano, PRI senator from Bul­ dering of drug money for the Caro ficking. He politely asked the traffick­ maro Pacheco (Sonora), and the gov­ Quintero/Felix Gallardo gang. At the ers to please "abandon" his state and ernor's "confidential" secretary Jose time, it was revealed that the Stauffer "cease their activities. " Antonio Arce Caballero. brothers had a close business partner­ And yet, few who know anything Robles is well known for his links ship with Valenzuela. Among other about the Sonora drug trade will buy to the infamous Sonoran drug traffick­ things, the Stauffer brothers sat on the the governor's theatrics. A series of er turned Mexico City chief of police board of directors of Valenzuela's massacres, like the seven killed in Na­ Arturo "el Negro" Durazo Moreno. Banco del Pacifico, founded in 1976. vojoa M�h 22 or the 10 killed in "El Negro" launched Robles's politi­ They were also co-investors with Val­ Agua Prieta March 29, or the October cal career by making him a federal enzuela in the Fiesta Americana hotel 1988 drug violence in Nogales which deputy from Xochimilco in the early chain, owned by Holiday Inn. The forced thearmy out to patrol thestreets, days of the Jose Lopez Portillo gov­ president of Fiesta Americana is Gas­ bear witness to the drug trade's bloody ernment (1976-82). ton Azcarraga Tamayo, whose first grip on the state.

48 International EIR May 19, 1989 Andean Report by Mark Sonnenblick

Peru reels from narco-terrorism who had recently switched sides to The country may yet stem the terrorist tide, now that pro-Soviet support anti-terrorist peasant militias. The second, May 6, was Pablo Li Or­ Prime Minister Armando Villanueva is out. mefio, a member of Garcia's APRA party. On May 8, Villanueva and the en­ tire cabinet resigned. Garcia named On May 8, the Socialist Interna­ This time, however, the Anny in­ 88-year-old Vice President Luis Al­ tional's top man in Peru, Annando tercepted them, killing 62 MRTA sol­ berto Sanchez as prime minister, who Villanueva, finally resigned from his diers. President Alan Garcia flew to pledged, "I want the armed forces and posts as prime minister and interior the site, and praised the Anny for its police to understand that Peru is at war minister. Villanueva had managed to action. "Thisdramatic spectacle is very against subversion." cling to power despite tremendous op­ sad and tragic, but it is necessary for Sanchez is the oldest living "State position, until terrorists assassinated democracy to defend itself, and it is Department socialist" in Ibero-Amer­ two congressmen April 27 and May 6. absolutely essential that the Annyand ica. Who is named to fill the cabinet Terrorists have murdered dozens of elected governmentof the republic get posts of Interior and Economics will local offficials throughout Peru, but to work to finishoff this threat. While give a better idea of whether the San­ this was the first time they had struck this blow may be one of the strongest, chez government is prepared to erad­ against congressmen. it cannot be the only one," he said. icate narco-terrorism. Any attempt to Pressure for Villanueva's ouster It may seem obvious that a democ­ enforce more IMF austerity-policies began building March 27, when a 300- racy should defend itself from assas­ which Sanchez has been associated man Shining Path battalion lay siege sins. But such was not the case under with over the years-will tip the bal­ for fivehours to the police post in the Villanueva, nor is it the case in neigh­ ance in favor of the terrorists. town ofUchiza, which lies in the heart boring Colombia today, where the Rumors that fonner Deputy Inte­ of the cocaine-producing area, the "human rights" of murderers come rior Minister Agustin Mantilla is un­ Upper Huallaga Valley. The police first. EIR's repeated alerts that terror­ der consideration as the next interior were finallyfo rced to surrenderto the ism targets the whole Andean Spine minister, sent the terrorists' support­ narco-terrorists, after Villanueva re­ were confinnedby the 62 dead MRTA ers in the "human rights" lobby fused to send reinforcements. soldiers, six of whom were citizens of screaming. One of Villanueva's first "What happened here was a lack Colombia, Bolivia, or Ecuador. actions was to fire Mantilla, an advo­ of political decision in response to re­ The following day, Garcia flewto cate of tough action against the narco­ peated requests by the zone com­ the Huallaga Valley for two days of terrorists. mander for reinforcements," Gen. Ed­ meetings with the military high com­ No matter who is named, the job gardo Mercado Jarrin (ret.) wrote in a mand. Garcia warned that the terror­ will not be easy. On May 10, Shining Peruvian strategic policy journal in ists were attempting to seize the co­ Path launched a three-day general May. "So long as narcotics traffic is caine center as their first "liberated strike in the Huancayo region with 50 not destroyed, so long as [we] do not territory" in Peru . bombings of factories, banks, public get tough with narcotics traffic, the "Little by little, subversives who buildings, and buses. The city of possibilities for subversion to expand act in other areas of the national terri­ 450,000 people was paralyzed. are much greater." tory are converging around Tocache, As Gen. Mercado Jarrfn explained Terrorist confidence that they and if we don't act immediately, we in his analysis, the Huancayo area is could act with impunity under Villan­ run the risk of seeing the Upper Hual­ Lima's food supply and the source of ueva was again evidenced April 28. laga converted into an almost inde­ its water and electricity. "Whoever Terrorists had previously moved in pendent zone .... Narcotics traffic dominates the central mountain range, small groups disguised as peasants. and terrorism intend to make a 'pock­ dominates the territorial heartland, and But now, a unifonned column of the et' of this zone from which to feed whoever dominates the territorial Tupac Amaru Revolutionary Move­ subversion elsewhere in Peru." heartland, dominates Peru ." Shining ment (MRTA) rolled in two trucks and By then, terrorists had begun pick­ Path is everywhere there , in schools, a jeep out of the jungle toward Huan­ ing off congressmen. The first victim in unions, and in peasant organiza­ cayo, a key central Andean city. was Eriberto Arroyo, a Communist tions.

EIR May 19, 1989 International 49 International Intelligence

World War II. ronment and ensuring universal environ­ British Labour wins TASS quoted Shevardnadze with the mental security through prompt and effec­ usual line that the state of relations between big in by -election tive action is an imperativeof our times," he Moscow and Tokyo "was still not commen­ said. surate with the potential possibilities avail­ Shevardnadze said there should be a The British Labour Partyhas had its best by­ able to the Soviet Union and Japan and the U. N. Centerfor Emergency Environmental election result in 50 years , with a victory standing of our countries in the world." Assistance headed by an undersecretary May 4 in the Welsh district of Vale of Gla­ general. "The main function of the center morgan. The campaign was waged and won would be the prompt dispatch of internation­ entirely on one issue: the Thatcher govern­ Canadian bishops al groups Of experts to areas where the state ment's health policy. of the environment has badly deteriorated." Compared to the last election in the dis­ condemn Syria The team would examine the situation trict, Labour's total vote went up by 14%, and draw up recommendationsfor improve­ the Tories went down by 11%, and the A press release from the Catholic Confer­ ment, he said. "Whennecessary, such groups smaller "centrist" parties, the Social Dem­ ence of Canadian Bishops dated April 17 would include lawyers to consider legal ocrats and Social Liberal Democrats , suf­ made public a letter sent the week before by problems that may arise as a result of envi­ fered big losses. Reuters news agency is its president, Bishop James Hayes of Hali­ ronmental disasters with trans-bt>undaryef­ labeling this a "stunning victory" for La­ fax , to Canadian Prime Minister BrianMul­ fects." bour. roney, denouncingSyria 's bloodyactions in It is also an important warning signal to Lebanon. Mrs. Thatcher's government. Labour cam­ Stressing that "Christians of Lebanese paigned only on the issue of opposition to extraction residing in Canada have ex­ Chirac: three the government's plans to reform the Na­ pressed their anguish at the fate of their fam­ tional Health Service. So vehement is the ilies in Lebanon and of their fatherland," principles fo r NATO opposition to Thatcher's policies, that doc­ Bishop Hayes asked Mulroney to "deploy tors in and around the district called on the all diplomatic efforts susceptible of imme­ Paris Mayor Jacques Chirac, the former voters to boycott the Tories, and the call was diately putting an end to the shelling of Bei­ French prime minister, visited Washington, overwhelmingly successful. One doctor in rutand of bringing aboutrenewed concilia­ D. C. on May 8 to presenta French proposal Vale of Glamorgan ran as an independent tion efforts," according to Montreal's La on the dispute between the Bush administra­ on his own ticket; he got almost no votes, Presse. tion and West German Chancellor Helmut but the fact that he was running had great "TheLebanese people is entitled to peace Kohl over modernization of West German­ symbolic importance. and security," added Bishop Hayes . "As a y's short-range nuclearmissiles . founding member of the U.N., it must be Chirac told an audience at the Carnegie granted international diplomatic efforts. We Endowment for Peace, "The time has not Japan, Soviets in heartily wish . . . Lebanon not be leftalone come, it seems to me, to bestow on the and forgotten in this tragic hour of its histo­ U.S.S.R. the certificate of democracy which " some are urging us to award it." Kuriles stalemate ry. The Executive Committee of the Que­ Chirac told President Bush in a private "There is nothing new on the territorial issue bec Assembly of Bishops made a similar meeting, "We have to keep a nucleardeter­ from either side," a spokesman for visiting request of the Canadian government. rent because without a nucleardeterrent we Japanese Foreign Minister Sosuke Uno told have not a chance to maintain the security reporters in Moscow after a meeting with and peace in Europe. " Chirac predictedthat Foreign Minister Eduard Shevardnadze. Russianspro pose U.N. French PresidentFranc;ois Mitterrand would A dispatch from the Soviet news agency intervene to try and persuade Kohl to give TASS said Shevardnadze had pointed to 'environment' agency up his demands that the alliance beginshort­ Moscow's initiatives to improve its rela­ range missile talks with the Soviets. tions in the Pacific, including scaling down The government of the Soviet Union, in a Chirac presented what he called "three its troop concentrations in the easternSoviet letterreleased May 5, proposed aU.N. body principles" for NATO: Union and Mongolia. to organize an international response to "en­ 1) Reject any denuclearization and any But TASS also indicated that there was vironmental emergencies." negotiations on short-range weapons. no agreement in the dispute over the Kurile The letter, signed by Foreign Minister 2) Reduce the number of missiles to a Islands, the chain stretching north from Ja­ Eduard Shevardnadze, followed up an idea minimum and increase their range "lest de­ pan's Hokkaido Island to the Soviet Union's put to the General Assembly in December terrence shouldappear to Europeansas syn­ Sakhalin Peninsula. The Russians have oc­ by Soviet leader Mikhail Gorbachov. onymous with limited nuclear waron their cupied the islands since the closing days of "Overcoming the global threat to the envi- own soil."

50 International EIR May 19, 1989 Briefly

3) Contribute independent British and Defense Minister Humberto Ortega said, • SOVIET T-80 TANK produc­ French nuclear weapons "by means of "We have ordered a high level of combat tion soaredili the firstquarter of 1989 agreements and of appropriate political and alert to respondto any implications for Nic­ fromabout 3,500a year to more than military mechanisms, among Europeans aragua an invasion of American troops in 4,200, while outdated models were themselves, as well as with the United Panama might have," he told a news confer­ retired, accOrding to Pentagon offi­ States." ence." U.S. officials have not ruled out an cials with access to DIA information For those left scratching their heads on armed intervention in Panama if elections quoted in the May 8 Washington point three, Chirac responded, "It is quite failed to return the candidate of U. S. Times. Said one official, "On the face complicated. This is t(,lO open a discussion. choice-which they did not. of it, it is a complete contradiction of It's very difficult and I cannot go into de­ Ortega, who is also head of the Popular Gorbachov's stated intention of tak­ tail." Sandinista Army and the militia, said U.S. ing 10,000 tanks out of service." threats to invade Panama are very serious and could complicate the Central American • SOVIETDeputy Foreign Minis­ The greening of conflict. ''This is why we are on alert and ter Igor Rogachevarrived in Beijing ready to defend ourselves," he said. "What unannounced on April 22, according Count Ripa di Meana is happening in Panama ia a lesson to the to Yugoslaria's Tanjug news ser­ Nicaraguanpeople that we should beready ." vice. The Chinese Xinhua news ser­ Count Carlo Ripa di Meana of Venice is Nicaragua has planned national elec­ vice acknowledged his arrival and playing a surprisingly vigorous role in the tions in February of 1990, as partof a peace announced his departure April 28 . "greening" of Europe, the May 7 FiTUlncial plan being drawn up by Central American Times of London reported . Ripa was recent­ leaders, which also envisages the demobi­ • ADNAN KHASHOGGI'S for­ ly appointed to the EuropeanCommunity 's lization of 12,000 Nicaraguan rebels in mer second wife, Lamia, an Italian, Commission on the Environment. Honduras. flewto New Delhi in April to receive According to the report, the Venetian a special peace prize as the Woman count hashelped persuade ECmember states of the Year. Admittedly, the Indian to take "unexpectedly drastic action" to press noted, a peace prize for the "protect the ozone layer," and is "pushing The underworld of spouse of a leading arms dealer is a ahead with a new, largely French-inspired bit odd. idea to create a European Environmental Jacques Soustelle Agency, to some extent modeled on the • CHINA has indicated that it is U. S. 's powerful Environmental Protection French anthropologistJacques Soustelle, one unhappy with concessions made by Agency." of the leading inspirers of international nar­ Prince Nol'Qdom Sihanouk to Cam­ Ripa wants to make environmental pol­ co-terrorism, has denied charges from the bodian PremierHun Sen during their icy an integral part of the Europe 1992 new Paraguayan government that he was talks in Jakarta April 30. scheme. He is also focusing on the global involved in a fraud scheme with overthrown threat caused by damage to the Brazilian Paraguayandictator Alfred Stroessner. • MAXWELL RABB, Ronald rain forests, and is privately advancing the Paraguay's Trade and IndustryMinistry Reagan's ambassador to Italy, told idea of an EC energy tax to pay for correct­ charged that Soustelle and Stroessner em­ the Italian magazine Ep oca that in ing ecological problems in the ThirdWorld. bezzled over $40 million. They are alleged October 1981, he was awakened in The FiTUlncial Times notes that the to have done so through a Swiss-registered his hotel in Milan and told to flyhome Venetian nobleman is an Italian Socialist, shell company that involved senior execu­ to the United States. "I was to have who joined the party in 1958 after an earlier tives of Paraguay's state-owned National been assassinated the next day. Five attachment to the Communist Party. Cement Industry, which used overbilling in Libyans had been captured by police the fraud. in a Rome hotel , and one of them was Stroessneris in exile in Brazil. Thirty of to have beenmy killer." Nicaragua puts his aides are being investigated by the new government. • PRESIDENT MITTERRAND troops on alert Soustelle, a former French Governor of France has sent his son and chief General of Algeria, was Information Min­ adviser on Africanaffairs to Senegal Nicaragua put its armed forces and reserves ister in 1958-59 in the government of Gen. and Maurital1ia to attempt to resolve on alertjust prior to the elections in Panama Charles de Gaulle. Soustelle quit and be­ tensions betVt'een two of the world's May 7, in anticipation of a U.S. military came a leading a figure in the Secret Army poorest natiOns, which led to the interventionin Panama, according to a Reu­ Organization (OAS), which mounted sev­ eruption of riots in late April. ters wire. eral assassinationattempts against deGaulle.

EIR May 19, 1989 International 51 �TIillBooks

From the Hitler-Stalin Pact to 'Operation Barbarossa'

by Michael Liebig

protocol of the Hitler-Stalin Pact concerning the partitionof Poland and the occupation ofth� Baltic nations. Such claims, Der Eisbrecher: Hitler in Stalins Kalk.Ul he insisted, are based on anti-Soviet lies and falsifications. by Victor Suvorov In West Germany, Suvorov's book has already provoked a Verlag Klett-Cotta, Stuttgart, 1989 series of Soviet articles, essays, and conference presentations 461 pages , DM 36. on the 1939-4 1 period which betray extreme Soviet sensitiv­ ity on this point. Der Sp iegel has printedan extensive, multi­ The books previously authored by Victor Suvorov on the paged review of Suvorov's book, in an unsuccessful attempt subject of the Soviet military intelligence service, the GRU, to undermine the author's arguments. It is also remarkable and on special spetsnaz commando units, have already made that, unlike Suvorov's previous books, this one has appeared a valuable contribution to informing the broader Western only in German- and French-language editions, not in Eng­ public about the Soviet leadership's actual capabilities and lish. intentions. This latest book, on Soviet Russia's political and military strategy during 1939-41, not only provides crucial The Hitler-Stalin Pact: new insights into that period, but also confronts us anew with gateway to the 'second imperialist war' the Soviet leadership's remarkable ability to successfully Suvorov proceeds from the assumption that the Soviet misinform the world about its true aims over a 50-year time­ leadership under Stalin obviously did not believe in their own span-a circumstance which becomes all the more shocking, propaganda formula on the "peaceful construction" of "so­ given that many of the essential facts which Suvorov presents cialism in one country." They believed that Soviet Russia in his book, must certainly have long been known by military could only survive and secure a strengthened geopolitical historians in the West. position, as an outcome of a "second imperialist worid war." Thus it has come to pass, that the absurd myth of the Lenin himself repeatedly spoke about the "inevitability" of a "peace-loving" Soviet Union, which was "suddenly and new world war. treacherously" attacked by Hitler's Germany on June 22, The precondition for such a new world war, in the Soviet 1941, has remained essentially intact over the intervening view, was the so-called "inter-imperialist rivalries." In the years. Today, the Soviet leadership, and its overt and covert wake of World War I, the "imperialist" powers became di­ friends in the West, are painfully aware that any breach in vided into a "saturated" grouping, consisting of Great Brit­ the prevailing historical fictionsregarding Soviet policy from ain, France, the United States, and the small Eastern Euro­ 1939 to 1941, would have a far-reaching significance. Gor­ pean states allied to them; and a "revisionist" grouping, con­ bachov himself has drawn attention to this by his numerous sisting of Nazi Germany, Italy, and Japan. The aim of Soviet public apologies for the Hitler-Stalin Pact and its aftermath. diplomacy was therefore systematically to encourage a sharp­ The former Soviet Foreign Minister Andrei Gromyko, in ening of these "inter-imperialist contradictions" into actual a rare interview granted to the West German newsweekly war; in Stalin's words, the imperialists had to be induced to Der Sp iegel, took pains to deny the existence of any secret "bite each other like dogs."

52 Books EIR May 19, 1989 In this respect, the crucial Soviet diplomatic break­ the summer of 1940, Lithuania, ROIJ!lanian Bessarabia, and through was attained with the signing of the Hitler-Stalin Bukovina were completely occupied by Russia; and it should Pact on Aug. 23, 1939. With it, the Soviet leadership had be noted that neither the military occupation of Lithuania nor cleared the way not only for the military liquidation of the of Bukovina had been provided for in the Hitler-Stalin Pact. Polish state in collusion with Nazi Germany, but also for the The major target of this Soviet pressure was clear: 1) Roman­ outbreak of the entire "second imperialist war." Therefore, ia, with its oil at Ploesti, the sole important source of oil for World War II actually began on Aug. 23, 1939, even though Germany, and 2) the Balkans as a whole, especially Yugo­ it was not until Sept. 1 that German troops invaded Poland, slavia, Bulgaria, and the Turkish sea straits. Moscow's sec­ with the Soviet troops following suit on Sept. 17. Hitler's ond line of attack was against Finland, which was invaded remaining scruples over provoking warwith France and Great by Soviet Russia in November 1939 andby March 1940 was Brtain, both of whom had guaranteed Poland's integrity, had forced to beg for a ceasefire. been swept aside through Stalin's political and military com­ This Soviet line of attack was, of course, aimed at the plicity. most vulnerable points of Germany's military-industrial At the same time, however, Nazi Germany had been complex. Romania was supplying two-thirds of the oil for maneuvered into the classic two-front situation of World War the German war machine; coal gasification never covered I: To the west lay France and Great Britain; and in the east, more than 30% of its fuel requirements. Afterthe occupation in the middle of partitioned Poland, Soviet Russia and Nazi of Bessarabia, the Red Army was only 200 kilometers re­ Germanydirectly faced each other. Thus, Hitler's diplomatic moved from the Ploesti oil fields-"Germany's weak point," "liberation strike" for the dismemberment of Poland ended in Marshal Zhukov's words. Yugoslavia was providing the with Nazi Germany totally surrounded geopolitically, and bulk of the bauxite which was critical for German aircraft entirely dependenton the continued good graces of the Rus­ production. From Finland came nickel, which was critical to sians. weapons production; Nazi Germany had no other accessible Nevertheless, the Soviet leadership was surprised in May nickel reserves. AfterMarch 1940, as part of the spoils of the 1940,and had to modify the time-frame of its agenda. They Finnish War, the region of Finland containing the nickel had not believed that Nazi Germany would be able to mili­ deposits was annexed by Russia. At the same time, Soviet tarily crush France and Great Britain in continental Europe control over Finland provided opportunities to attack German as quickly as they in fact did in May and June. Moscow had supplies of northernSw edish iron ore, which had to be trans­ been counting on a replay of World War I, which would have ported via the Baltic or northern Norway. allowed the Soviet Union to carefully await the time when an Soviet Russian pressure on Nazi Germany was increased exhausted Nazi Germany, pinned down in the West, could in parallel with intensive military and diplomatic efforts to be given the same treatment already meted out to Poland. eliminate Japan as an opponent of Russia. This effort suc­ But even the German Blitzkrieg did not bring about a ceeded in August 1939 with the surprise offensiveof the Red decisive turn in the overall strategic situation; it therefore did Army under Zhukov in Outer Mongolia, in which Japan's not alter the basic parameters of Soviet strategy. Nazi Ger­ Sixth Army was crushed. The Soviet victory at Khalkhin Gol many was unable to conquer Great Britain militarily; it sim­ demonstrated that Stalin's purges of the Red Army had by no ply lacked enough sea and air power to undertake this. Fur­ means led to its paralysis, and that the army's initial failures thermore, Germany's military resources were scattered across in the invasion of Finland were by no means symptomatic of an area reaching from northern Norway, through France, and the overall condition of the Soviet armed forces. into Libya. Starting with the victory at Khalkhin Gol, Soviet diplo­ On the other hand, the Soviet leadership knew that the matic efforts were bent upon a non-aggression pact with United States and Great Britain would not be able to intervene Japan, which was in fact achieved in April 1941. Instrumen­ militarily on the continent until their armament efforts had tal to this effort was the secret intelligence work of the Soviet reached a much higher level. During this span of time, there­ spy group around Richard Sorge in Japan. Soviet Russia now fore, a Soviet military victory over Nazi Germany would had its rear flanksecured, and could fully concentrate on the mean that there would be no world power which could suc­ "WesternFront" with Nazi Germany. cessfully challenge Russia's total control over Western Eu­ Beginning in the summer of 1940, the Soviet war mobi­ ropeto the Atlantic coast. Thus there was no time to lose in lization was systematically escalated to gigantic proportions. cranking up Soviet Russia's armaments efforts and preparing In the second half of 1940, there were II new armies added an offensive attack against Nazi Germany. to the already existing 17 armies. Eight armies were created During the invasion of France in May-June 1940, the by mobilizing the eight "interior" military districts; i.e., the Soviet leadership began to systematically increase its pres­ military districts, along with their entire leadership, were sure on Germany. The diplomatic climate between Berlin transformed into armies. Ten of the newly formed armies and Moscow noticeably worsened, and the rift became ob­ were reallocated against Nazi Germany. In all, 13 armies vious during Molotov's visit to Berlin in November 1940. In were mustered in the immediate vicinityof the demarcation

EIR May 19, 1989 Books 53 line in Poland-i.e., directly confronting the Wehrmacht. "Western Front" speaka language which can not be disputed Among Soviet Russia's 28 armies, its 16 "shock armies" or misunderstood: Stalin was in full-throttlepreparations for obviously had a special significance because of their high an attack on Hitler Germany. component of up to 1,000 tanks apiece. Of these 16 shock armies, three were exceptional: the Sixth, Ninth, and Tenth Russian vs. German tank capabilities Shock Armies, each with up to 2,000 tanks, approximately This should in no way downplay the significance of the one-third of which were of the types T -34 and KV . In June W ehrmacht's fightingabilities; in their level of training, their 1941 these three shock armies had twice as many tanks as the operative leadership principles, and battle experience, they Wehrmacht's four "tank groups," which had a total of 3,200 were certainly the best in the world in 1941. But when we tanks, many of which were by no means late models. The consider the industrial base for arming them, we findthat in Tenth Shock Army was stationed in the immediate vicinity 1941 it was significantlybelow the 1917 level. At the tum of of the border with the German-occupied part of Poland in the the year in 1941, Germany was producing under 100 tanks Russian "front balcony" of Bialystok. The Sixth Attack Army per month-less than 10% of Russian production! True, the was stationed in the Western Ukraine front balcony of Lvov operative leadership and logistical organization of the Ger­ (Lemberg). The Ninth (and largest) Shock Army was sta­ man tank divisions was first d1ass; but it would be irrespon­ tioned in the Ukraine and Moldavia, right next to Romania; sible to speak of any general technical superiority of Ger­ in addition to its large masses of tanks , it had large paratroop many's tank forces over those of the Red Army. This holds and mountain warfare divisions. Up to 1940, the Red Army true not only for the T-34, some 1,200 ofwhich had already had no mountain warfare divisions; they weren't that useful been produced by June 1941, but also for the KV-I tank, on the level plains of the Ukraine, but were perfectly suited which was available in much greater numbers and was more for a rapid conquest of the Romanian Carpathian Moun­ than a match for the German Mark III and MarkIV Panzer. tains-the most direct path to the Ploesti oil fields. Although in the summer of 1941, the Red Army pos­ sessed more T-34s and KVs than all German tank forces The Red Army in offensive deployment combined, a great proportion of these were the BT-7 "fast The manner in which this mass of Soviet armed forces tanks." The BT-7, a further development of the American was deployed on the "WesternFront" -i.e., immediately on Christie M tank of 1931, turnedout to be completely unsuited the frontier, demonstrates clearly and unequivocally that the for the Red Army's rearguard battles in Russia's interior. concept behind this array was not defensive. There can be no That is not so surprising, since the BT-7 was not designed for doubt, that the Red Army, the }llanner of their deployment, deployment in Russia's interior in the firstpla ce. Its peculi­ was exclusively aimed at an attack against Nazi Germany, aritylay in its need for a well-developedroad network within Romania, and Hungary. From the end of 1939 onward, the its sphere of action, in order for it to take advantage of its Soviet leadership systematically dismantled their extensive strength-i.e., high speed with light armor and artillery. It defensive installations in Byelorussia and the Ukraine (the could do so by dismounting its treads and-assuming the "Stalin Line"). Comprehensive and well-prepared measures existence of acceptable road conditions, or even highways­ for the destruction of transit routes, mine blockades, and using its runner-wheelsto achieve speeds of over 80 km per infrastructure for the conduct of partisan warfare in the event hour! of an invasion of Soviet Russia-all these were removed or revoked . At the same time, attack divisions were sent in ever Soviet airborne assault forces greater numbers, to crowd ever more closely on the border Aside from the sheer mass and quality of the Soviet tank with Nazi Germany. contingents, the expansion of Soviet airbornetroops between This strictly offensive movement of Soviet armed forces 1939 and 1941 is quite remarkable. Since the early 1930s, is eminently significant, when one considers that up to the the Soviet Union had been the first and only country in the present day, Soviet disinformation has vehemently insisted world to develop extensive airborne troop capabilities. By that the Hitler-Stalin Pact was merely a desperate emergency the mid-1930s, maneuvers were already being carried out measure in order to expand its "glacis," its defensive patrols. with mass jumps of thousands of paratroopers, at a time when for the protection of the Motherland as far westward as pos­ no paratroop divisions even: existed outside Russia. Para­ sible. In reality, between 1939 and 1941, not only was no chuting even turned into a "socialist mass sport," with defense system (in the sense of the "Stalin Line") created in hundreds of thousands of paramilitarily trainedjumpers . Su­ the Russian-occupied zones of Poland, the Baltic states, and vorov points out that by 1940-41, the Red Army had assem­ Romania, but even the existing defensive installations on the bled an airborne troop corps, and that the production of "old," pre- 1939 frontier were systematically tom down. manned gliders and the franchised production of the Ameri­ The idea that Stalin must have had a sentimental trust in can DC-3/C-47 transport (before June 22, 1941!) was mas­ Hitler's promises, is of course completely absurd. The mili­ sively expanded. The restationing of these airborne troop tary and political measures which Stalin effected on the divisions gave the Soviets the option of immediately deploy-

54 Books EIR May 19, 1989 ing them, without further movements, into the hinterlands of The preparations initially began against Poland, the Bal­ the "WesternFront ." tic states, Finland, and Romania. Soviet armament efforts Large paratroop divisions are assault forces par excel­ were set at full throttle, and its productionof modem weapons lence; their deployment only makes sense in the context of far surpassedthat of Nazi Germany. And yet, precautions for surprise attack operations behind enemy lines. In defensive the defense of Soviet territory-ofthe Motherland itse1f­ and rearguard operations, their usefulnessdwindles to that of against German attack, wereradically dismantled. Ever more poorly armed infantry troops. Red Army assault divisions were positioned immediatelyon It should not be forgotten that, in 1941, the Soviet Union the Soviet Union's western frontier. Ouring 1940-4 1, Rus­ possessed by far the world's largest fleetof aircraft. Herewe sia's effective mobilization led to the constant creation of see a picture similar to that of the tanks, namely, the Soviets new armies from out of nothing. Beginning in the spring of 1941, the eight "interior" military districts were completely stripped of personnel and brought to the west in an extraor­ dinary feat of militarizedrail transport. Up to June 1941, the The idea that Stalin must have Red Army redeployed a huge number of troops from Lithu­ ania on the Baltic, all the way to the Danube delta on the had a sentimental trust in Hitler's Black Sea. This Soviet redeploymentfar surpassed Nazi Ger­ promises, is ojco ursecom pletely many's "Barbarossa"deployment, which was taking place in absurd. The military and political close geographic proximity at the very same time. Suvorovproceeds from the assumption that in the spring measures which Stalin ldfe cted on of 1941, Moscow's general strategic preparations for an of­ the 'Western Front' speak a fensive waragainst Nazi Germany went over into concrete, language which can not be operative preparations for the assault . .suvorov assumes that by April 1941-i.e., following the non-aggression treaty disputed or misunderstood: Stalin with Japan-the Soviet leadership had determined that the was tnjull-throttle preparationsjor attack should take place in July 1941. an attack on Httler Germany. Stalin's secret speech On May 5, 1941, Stalin gave a secret speech before the Soviet Union's militaryleaders . Soviet historians do not dis­ pute the fact that he gave such a speech, that it was important, quite certainly possessed technologically modem fighter air­ and that Stalin spoke of the inevitability of a war against craftin 1941. The Soviet air forces' deployment doctrinewas Germany. But the text of the speech remains a state secretto clearly not oriented toward air defense, but rather toward thepresent day. Stalin delivered the speechfo llowing a secret large-scale airborne assault operations. Sudden, large-scale emergency meeting of the Soviet politicaland military lead­ assault operations, spearheaded by air assault divisions, par­ ership, from which was issued a secret directive to the senior atroop divisions, and masses oftanks, constituted the core of military commanders-a directive whose existence is not all Soviet warfare doctrine, which assigned crucial signifi­ disputed, but whose contents have likewise never been made cance to the "initial phase of warfare." public. The central assertion of Suvorov's book, however, lies On the following day, May 6, 1941 , Stalin formally and not in its characterization of Soviet military doctrine and officially-and for the first time in Soviet history-sub­ Soviet Russia's military potential in materiel and personnel sumed in his own person the sole leadership of both the party in 1939-41 . Suvorov' s primary concernis the Soviet Russian and the state. Shortly thereafter, the top functionaries of the leadership's concrete intention, in 1941-42, to conquer Nazi CPSU all received military rank. In May 1941, Soviet pro­ Germany and to gain control of all continental Europe. paganda was overhauled to the effect that the order of the day was to "be prepared for surprises and sharp turns in the Spring 1941: two campaigns in the east situation." And as all this was happening, the Red Army's On the same day as the Hitler-Stalin Pact was signed, westward deployment grew ever more massive. Aug. 23, 1939, the Soviet Union began its strategic prepa­ Suvorov clearly asserts that amid all these dramatic de­ rations to wage war on Nazi Germany. On that same day, velopments, Stalin by no means wanted to prepare for a compulsory military service was instituted throughout the surprise German attack. When that attack came, on June 22, Soviet Union. Already on Aug. 19, Pravda had written: 1941, he was taken totally unawares. On June 22 and in the "Precisely in the interest of our own defense, the U.S.S.R. following days, total chaos reigned among the Soviet military will be called on to launch broad assault operations against commanders, since they had received no instructions what­ the enemy's territory." soever for the eventuality of an attack from Nazi Germany.

ElK May 19, 1989 Books 55 In the prepared orders which the Soviet General staff had distributed to the commanders at the front, there was no provision at all for a defensive war against a German attack! A romantiC view of The contents of their instructions were solely devoted to a Soviet Russian attack on Nazi Germany ! But the intended the superpower deal date of the Soviet attack came "too late"-by only a few weeks, Suvorov asserts . by Rachel Douglas Suvorov presents convincing arguments as to why Stalin believed what his agent, Richard Sorge, had reported about Japan, but had ignored Sorge's warnings E�'out a German attack. Suvorov believes that Stalin, along whil Soviet Rus­ sia's entire political and military leadership, simply could not Two Lives, One Russia by Nicholas Daniloff imagine that Hitler and the Wehrmacht Supreme Command Houghton Mifflin Company, Boston, 1988 (OKW) would start a war against Russia without typically 317 pages, hardcover, $19.95 thorough German preparation. Suvorov relates striking examples of the way Soviet in­ telligence services were evaluating their agents' warnings The exchange of U.S. News "nilWorld Report correspondent about "Barbarossa." The Soviet intelligence services were Nicholas Daniloff, framed up and arrested in Moscow in carefully observing the continental European sheep market, August 1986, for a genuine Soviet spy who was caught in the which remained flat in 1941. The Soviets could not imagine act in New York City, Gennadi Zakharov , was a turningpoint that the Wehrmacht would attack Russia without adequate in Reagan administration policy toward the Soviet Union. winter clothing-whose essential component was sheepskin Fast on the heels of the swap that President Reagan insisted coats. The same situation existed on the market for special was "not a swap," he went qn to the October 1986 "summit fuels and lubricants, which could stand up to Russian winter that was not a summit" with Mikhail Gorbachov , at Reykja­ conditions: None of these had been procured for the Wehr­ vik. Reagan had embarked ()n the path to the disastrous In­ macht in 1941-with consequences that were to become termediate-range Nuclear Forces (INF) Treaty of 1987. quite evident by November of that year. Thus, Stalin har­ The closest Daniloffcomes to the heart of the matter, in bored no sentimental illusions about Hitler and the German this account of his ordeal, is to report that " Armand Hammer General Staff; rather, his miscalculation was based on entire­ once again became a player," with a flurry of private diplo­ ly down-to-earth considerations. macy that led to the swap. Daniloff thanks the nonagenarian Perhaps an even greater contributing factor to Stalin's Soviet intimate Hammer, "for always being there in times of miscalculation, was the fact that he and the entire Soviet Soviet-American crisis." Russian leadership were totally confident about the success Otherwise, Daniloff's book is a hopelessly romantic of their imminent surprise attack on Nazi Germany . Every­ amalgam of his story with the biography of his great-great­ thing was in place to gain possession of Romania's Ploesti grandfather, Nikolai Frolov, who was exiled to Siberia for oil fields within only a few days. At the same time, the frontal his part in the Decembrist uprising of 1825 . arcs in Lvov (Lemberg) and Bialystok were chock full of Frolov's granddaughter, Daniloff's paternal grandmoth­ soldiers , tanks , and aircraft, waiting to march directly on er, echoed the Russian supremacist Fyodor Dostoevsky, when Berlin. But all that had to wait another four years , since on she told the young Daniloff; "Russians are the world's most June 22, 1941 , the "peace-loving" Soviet Union was "de­ talented people and have something important to tell the ceitfully and treacherously" attacked by Nazi Germany . world." Grandma "was turning me into a Slavophile," Dan­ Indeed, the Wehrmacht' s immense initial successes in iloff later realized. Russia can only be explained by the fact that the masses of Daniloff mentions the bit part his grandfather, Gen. Yuri Soviet men and materiel crowded together directly on the Danilov, played in the Russian revolutions of 1917. Having frontier, could be relatively easily surrounded and crushed. "advised the czar to abdicate in March 1917," General Dan­ Within only a few weeks , millions were taken prisoner, and ilov "loved Russia so much :that he finally agreed to join the huge amounts of war materiel destroyed. Soviets at Brest-Litovsk"; he'subsequently shifted to the White It is a good thing that this book by Victor Suvorov has Army , and emigrated after defeat. The Czarina, Daniloff been published, since after 50 years it makes a crucial con­ notes, had suspected that General Danilov might have been tribution to illuminating the historical facts about the period "plotting with the supreme commander, Grand Duke Nikolai between the Hitler-Stalin Pact and "Operation Barbarossa." Nikolayevich, to overthrow her husband." As a matter of Now that it is out, the Soviet Russian leaders will find it fact, the senior Danilov' s 1930 biography of this grand duke, somewhat more difficult to purvey their historical disinfor­ the czar's cousin, suggests that the Czarina's suspicions were mation . well-founded.

56 Books ElK May 19, 1989 To tal war: a strategy for snatching victoryfr om theja ws of defeat by Allen Douglas

phasized that the form of the resistance struggle must be all­ encompassing People's War. This present volume by Gen­ Turning Defeat into Victory: A Total War eral Teng, to which LaRouche contributed a preface, is an Strategy Against Peking indispensable handbook for any statesman or ordinary citizen by Gen. Teng Chieh Chinese Flag Monthly. Taipei. 1988 who participates in that anti-Bolshevik resistance movement. 130 pages. paperbound. $5.99 General Teng's career Gen. Teng Chieh was bornin 1904 in the mainland prov­ ince of Kiangsu. During the 1920s he was sent by Gen. In the first weekof September 1988, the American statesman Chiang Kai-shek to study, first at Shanghai University, and Lyndon H. LaRouche, Jr. and his wife Helga Zepp-La­ then at the renowned Whampoa Military Academy, where Rouche, the West German chairman of the European Labor his classmates included some of those who later became Party, paid their firstvisit to the Republic of China (Taiwan). leading Communists, like Liu Shao-chi and Lin Piao. By the The high point of the several days of meetings with legisla­ early 1930s, General Teng had become one of the most trust­ tors, military figures, academics, and others, was the extend­ ed advisers to Chiang Kai-shek. ed dialogue the LaRouches conducted with 84-year-old Gen. Following the Mukden incident on Sept. 18, 1931, in Teng Chieh, one of the leading theoreticians of the ruling which the Japanese made their first incursion into China, Kuomintang (KMT) Party , and a decades-long adviser to General Teng presented Chiang with a plan to reorganize the Generalissimo Chiang Kai-shek. Kuomintang political and military forces to defeat the antic­ Throughout the discussions, General Teng emphasized ipated all-out invasion. The centerpiece of General Teng's that Moscow and Beijing were waging a different kind of reorganization was the Society for the Realization of the warfare against sovereign states in both the West and in Asia Three Principles of the People, a soGiety so secret that not than is usually understood. This kind of warfare , which Gen­ much is known about it even today. The "three principles of eral Teng calls "total war" (and which the Communists call the people" were an elaboration of Abraham Lincoln's con­ "People's War"), is vastly broader than military conflict per cepts: "of the people" (national sovereignty), "by the people" se and subsumes offensives in politics, economics, culture, (a democratic republic), and "for the people" (economic de­ and religion. The general's point was immediately appreci­ velopment) in the work of Dr. Sun Yat-sen, who founded of ated by the LaRouches, since Mr. LaRouche had long stressed the Republic of China in 191 1. The society is credited with that Moscow, under cover of detente and glasnost. was wag­ giving the KMT forces the strength necessary to forestall a ing precisely this sort of irregular warfare against the West. Japanese blitzkrieg conquest of China, and then to prepare Not long after the discussions on Taiwan, this irregular the ultimate defeat of the Chinese. warfare entered a new domain, when the Soviets and their General Teng has held a series of top posts in the govern­ Western assets forced the resignation on Nov. 11, 1988 of ment and the KMT. He is now a member of the KMT Central the President ofthe West German Bundestag (lower house of Evaluation and Discipline Committee and a member of the Parliament), Philip Jenninger (see EIR . Nov. 25, 1988). R.O.C. National Assembly. His new book is the latest in a LaRouche responded to this new assault with a call for the long series of training manuals (most of which are unpub­ creation of a "new worldwide anti-Bolshevik resistance lished) written to educate KMT party , government, and mil­ movement" against the Communists and their accomplices. itary officials, and many of his students now hold positions Hearkening back to the Taiwan discussions, LaRouche em- in the KMT, the R.O.C. government, and the military. As

EIR May 19, 1989 Books 57 each play their own part in coordination, resulting in a cen­ tralized war within a total war." In the total war against the Communists, the general argues, "revolutionary spirit is the decisive factor." "This kind of war demands constant mobilization, and in particular constant spiritual mobilization, so that everybody will un­ derstand the war and carry out their proper part in it .... Constant spiritual mobilization actually means constant spir­ itual construction," which is carried out by means of educa­ tion, with the aim of "transforming the national spirit." This is the sort of spirit developed at the Whampoa Academy in the 1920s, the same spirit later responsible for defeating the Japanese invasion. Though constant education is the key to constant spiritual construction, there is a previous indispensable concept, which lays the basis for igniting the spiritual mobilization, and that is the unwavering determination to win the total war. "In the course of our anti-communist war, the principle of 'putting victory first' is essential. The war against Communism is an all-out war in which there is no room for compromise. If you do not win, you lose; there is no third way. If you win, you keep everything. If you lose, then everything is lost, even life itself. That is how it is; if you do not put victory firstthen you are blindly courting destruction." The general specifi­ cally contrasts this to U. S. behavior in recent "limited wars ." "In any war, the aim is to seek victory. After all, if you do not seek to win, why bother to fight at all? In the Korean War Gen . Teng Chieh and the Vietnam War, the United States adopted a policy of not seeking all-out victory, and that was really something the publisher of the present work notes, "Once again he is very remarkable." proposing a bold plan, this time for resisting communism and Once one is committed to seeking victory, the revolution­ snatching victory from the jaws of defeat." ary spirit unfolds. "If you remain passive and allow yourself to be attacked, you have no hope of emerging victorious. General Teng's concept of total war There is no way you can generate an active enterprising spirit. The cornerstone of General Teng's strategy, and there­ All this runs clean counter to the demands of the revolution. fore of this book, is the concept of "total war." Before any­ The revolutionary cause is an active cause. Once you lose the thing can be done, the populations targeted for conquest by initiative, it is tantamount to laying aside or abandoning the the Communists must understand the nature of the conflictin revolution. If that is the case, how can we have a revolution­ which they find themselves. "We should be capable of dif­ ary spirit? If we are going to reestablish a revolutionary spirit, ferentiating clearly between total war and traditional forms a superior revolutionary spirit, we must regain the initiative. of warfare ," General Teng says, "without confusing the two. In order to regain the initiative we must take the offensive." We must realize that total war is very different in nature and On the surface, the form of People's War as applied by scope from other forms of warfare , and that it is employed in the Communists looks much like that applied by those op­ quite a different way ....Regarding its nature, total war is posing them. The difference is in what the two sides are thoroughgoing, maximum warfare . It overturns historical fighting for. The "Three Principles of the People" mean, for traditions, existing systems, customs and habits, even relig­ General Teng, universal democracy, which is both the goal ious beliefs . . . this kind of total war is of worldwide for which the war is fought, but also the method by which the scope ....Regarding its application, total war is applied in war is conducted. "The purpose of this plan is not merely to a multi-centered, multi-formed way. That is to say, it is not dissolve and exterminate the enemy but also to lay the foun­ solely centered on military warfare as such, but can be fo­ dation during the course of the war for the realization of the cused on other forms of warfare according to changes in the ideal of universal democracy under the Three Principles of strategic situation. When the focus has been decided, the the People. That is to say, we want to use the propaganda and political, economic, military, cultural and social sectors can education connected with the war to cultivate the foundation

58 Books EIR May 19, 1989 of the people's belief in universal democracy, to use the people's participation in the war to cultivate a basic habit of organizational life, to use the people's execution of tasks in the war to cultivate a sense of responsibility in carrying out Books Received public tasks. Hence this is a plan which covers war and development at the same time. It is a plan that stipulates Forged by Fire: Robert L. Eichelberger and the ensuring that this will be a war to end all wars, that afterwards Pacific War, by John Francis Shortal, University of we will proceed towards realization of the ideal of universal South Carolina Press, Columbia, S.C., 1987, $24.95 harmony, and that we will complete the revolution passively hardbound, 154pp. and actively in one battle." Operation Babylon: The Story oUhe Rescue of the The Three Principles of the People are entirely founded Jews of Iraq, by Shlomo Hillel, Doubleday and Co. , upon the notion that every person in the nation bears individ­ 1987, $19.95 hardbound, 301pp. ual responsibility for the outcome of the struggle. "A war of universal democracy is essentially a war in which everyone Renewal: A Novel, by Russell Shaw, Gamet Books, must participate and for which everyone must be responsible. San Francisco, 1986, $4.95 paper, $11 .95 hardbound, Hence everyone should naturally bear full responsibility for 328pp. fightingthe war. In particular those who have been influenced Pat Robertson: A Biography, by Neil Eskelin, Hun­ by traditional military affairs think that war is the business of tington House, Inc., Lafayette, La. , 1987, $9.95 paper, the military, and since they are themselves not soldiers, they 188pp. definitely do not feel that they have any responsibility for The Ancient Tradition of Geometric Problems, by this. Thus people generally tend to feel that the war is not Wilbur Knor Birkhauser, Boston, Mass., 1986, $69.00 is their business." But in reality, it their business, since "the hardbound, 411pp. war against Communism is a total war, one which must be fought by everyone, everywhere, and at all times." Stolypin: Russia's Last Great Rttformer, by Alex­ ander V. Zenkovsky, The Kingston Press Inc., Prince­ Taiwan's strategic position ton, N.J., 1986, 146pp. This exposition of total war by General Teng is under­ The Perfect Failure: Kennedy, Eisenhower and the taken, as the book's title indicates, with an urgent task in CIA at the Bay of Pigs, by Trumbull Higgins, W.W. mind. Chinese Communist leader Deng Xiaoping announced Nortonand Co. , New York, 1987, $17.95 hardbound, already in 1980 his plans to conquer Taiwan by 1991. What 224pp. General Teng-about whom Deng is reportedly obsessed­ Bernard Berenson: The Making of a Connoisseur, proposes, is to use the enormous instabilities inherent in the by Ernest Samuels, The Belknap Prtss of Harvard Uni­ Communist system to conquer mainland China instead. Many versity Press, Cambridge, Mass., 1979, 477pp. would consider it impossible that tiny Taiwan could conquer the mainland. Yet, General Teng says, the P.R.C. only looks The Gorbachev Strategy: Opening The Closed So­ l strong because it has been faced with no opposition. Once it ciety, by Thomas H. Naylor, Lex ngton BookslD.C. is, the contradictions inherent in the system of Communism, Heath and Co. , Lexington, Mass., 1988, $19.95 hard­ which have produced the economic collapse, starvation, and bound, 253pp. popular upheaval now taking place on the mainland, become Stalin: The Man and His Era, by Adam B. Ulam, readily apparent, and the path to victory clear. Beacon Press, Boston, Mass., 1973, 1987, $15.95 pa­ Much of the book is a manual for this reconquest. Yet, per, 760pp. its concepts of "total war," "revolutionary spirit," and the From Brezhnev to Gorbachev: Infighting in the "Three Principles of the People" are also those necessary to Kremlin, by BaruchA. Hazan, Westview Press, Boul­ defeat the plans of the Soviet Empire to defeat the Western der, Colo. 1987, $34.95 hardbound, 26Opp. alliance by approximately the same time that Deng intends to conquer Taiwan. The worldwide anti-Bolshevik resistance Religious Revolt in the XVIlth Ceptury: The Schism movement can take great lessons from General Teng' s book. of the Russian Church, by Nickolas Lupinin, The Almost equally importantly, resistance fighters everywhere Kingston Press Inc., Princeton, N.J., 1984, $24.00 can be greatly heartened that a man like General Teng, and hardbound, 227pp. his faction in the Kuomintang, exists. Near the conclusion of Irina Ratushinskaya: Beyond the Limit, translated his work, the general writes, "In his testament, Dr. Sun Yat­ by Frances Padorr, Brent and Carol J. Avins, North­ sen said we should unite all those in the world who regard us western University Press, Evanston, 1987, 121pp. as equals to fightalongside us."

EIR May 19, 1989 Books 59 Invoking 'peace in our time,' Bush adopts Kissinger plan

by William Jones

In a speech delivered at Texas A&M University on May 12, in a March 27 interview with the New York Times that the President George Bush announced a reversal of 40 years of Bush administration was seriously considering the Kissinger U.S. strategic doctrine and officially committed the United proposals, the plan was heavily attacked as a "New Yalta" States to the policy delineatedseveral months ago by former sellout in the United States and Western Europe. Kissinger Secretaryof State Henry Kissinger. After a preludeof paeans then deftly sought to transform it-nominally-into its op­ to the success of the last 40 years of "containment strategy," posite, in a syndicated column titled "Reversing Yalta. " The Bush announced, "We areapproac hing the conclusion of an Kissinger stigma has been removed from the policy-or so historic postwar struggle between two visions-one of tyr­ Bush hopes-but the policy itself is solidly in place. anny and conflict, and one of democracy and freedom." At­ Texas A&M was symbolically chosen as the place for the testing that his goal was "more ambitious than any of my . Bush speech, since it is the alma mater of Alfred Kotzebue, predecessors might have thought possible," Bush then de­ the firstAmerican soldier to shake hands with a Soviet soldier clared that he was going "beyond containment" toward the when the two armies met on the banks of the Elbe River in ultimate objective-''to welcome the Soviet Union back into 1945�a fact which was duly emphasized by Bush in his the world order. " speech. "Once again we are ready to extend our hand. Once "Make no mistake," exclaimed the President, "a new again, we are ready for a hand in return. Once again, it is a breeze is blowing across the steppes and cities of the Soviet time for peace," Bush said, echoing the sentiments of an Union ....Once again, it is a time for peace." umbrella-carrying prime minister some 50 years ago. Clothed in rhetoric which was undoubtedly meant to out­ shine the more euphoric phases of President Reagan's post­ Open skies, open trade Reykjavik utterances, but delivered in the characteristically Bush also resurrected a, policy from the Eisenhower pe­ clumsy, somewhat nervous, style of the Bush presidency, riod called the "Open Skies," which would allow unarmed the speech fell flat as a media eye-catcher. But its content aircraft from the United and the Soviet Union (surveillance made it clear that the Bush administration has decided to flights, complementing satellites, etc.) to fly over the terri­ travel the slippery slope of appeasement policies and has tory of the other country, thus opening up military activities wholeheartedly embraced the "end of the cold war" illusions to regular scrutiny. Perhaps the most dramatic policy reversal of British Prime Minister Margaret Thatcher, with the policy­ in the Bush speech was the promise to work with Congress content authored by Kissinger. to issue a temporary waiver of the Jackson-Yanik Amend­ Kissinger laid out his strategy several months ago in a ment, "opening the way to extending Most Favored Nation leak to the Washington Post. There he indicated that the trade status to the Soviet U Dion" -on condition that Moscow United States should agree to recognize Eastern Europe as "codify its emigration laws in accord with international stan­ primarily Soviet turf, in exchange for a Soviet pledge to dards." Bush also called an the Soviets to I). reduce their refrain from military intervention in the East European sat­ overall troop levels; 2) abandon the Brezhnev Doctrine, which ellite states. After Secretary of State James Baker indicated justifies Soviet armed intervention in the satellite countries

60 National EIR May 19, 1989 under the banner of "proletarian internationalism"; 3) collab­ menting that the resumption of strategic arms talks in June orate on resolving regional disputes; 4) achieve a lasting was an important step on the part of the Bush administration, pluralism and respect for human rights; and 5) work together aftera six-month hiatus during the "policy review," Shevard­ on the issues of terrorism, drugs, and the environment. nadze warned that the administration must "ascend new heights" in superpower relations beyond the accomplish­ Baker's trip to Moscow ments of the Reagan administration. "It would be extremely The Bush speech was strategically placed at the end of dangerous to rest on the laurels of what has already been the talks held between Secretary ofState James Baker III and achieved," Shevardnadze said. Soviet Foreign Minister Eduard Shevardnadze, at which the For the time being at any rate, the condominium is in nuts and bolts of the new policy were being worked out. place. Shevardnadze said that he and Baker had developed Before leaving for his Moscow rendezvous, to consummate "good personal relations" and that both men hope to make the New Yalta relationship with the Muscovites, Baker as­ summit meetings a "key element" in the U.S.-Soviet rela­ sured credulous conservative supporters at the Center for tionship, a "normal political phenomenon without the veneer Strategic and International Studies in Washington that the of sensationalism." He said that he agreeswith Baker that the Bush administration was not prepared to enter into a "con­ two of them should meet three or four times a year, "or more dominium" with the Soviets. Baker's talks with Shevard­ often if need be." Baker said he would also discuss the pos­ nadze and a three-and-a-halfhour discussion with Gorbachov sibility of a summit meeting between Gorbachov and Presi­ laid the practical basis for the new symbiosis. dent Bush, when he meets with Shevardnadze in New York In what was portrayed as a "vintage Gorbachov" surprise in September. attack, Baker was allegedly caught off guard by the Soviet One of the prerequisites for Moscow's remaining in the leader's proposal to unilaterally withdraw 500 short-range "condominium" will be a U.S. retreat from the Strategic nuclear missiles (out of a total of some 10,(00) and a mutual Defense Initiative. Simultaneous with the talks on strategic troop reduction of 1 million soldiers. Gorbachov called on arms limitation, there will be companion Defense and Space Baker to let NATO begin immediate negotiations with the Talks. Bush is not quite prepared to eliminate the SOl out­ Warsaw Pact for mutual reductions in short-range nuclear right-the most popular defense program of his popular weapons. Baker rejected the call for talks, which seemed predecessor. That would undoubtedly set offa storm of op­ intended to upstage him on his firstvisit to the Soviet Union. position. But budget cuts and program limitations could well The secretary of state, reportedly somewhat taken aback by serve to whittle down any remaining opposition to the New Gorbachov's heavy emphasis on arms control issues, com­ Yalta sellout. mented that the move was "a good step, but a small step . . . On May 11, the same day that Bush gave his Texas A&M toward a more equal balance in Europe." Baker said that the speech, Lt. Gen. George L. Monahan, who replaced Lt. Gen. United States has already been urging the Soviets to unilat­ James Abrahamson as the head of the Strategic Defense Ini­ erally reduce its short-range nuclear force advantage in Eu­ tiative Organization, announced that the administration was ropebefore the issue can become a subject for negotiations. delaying development of key parts of the Reagan defense In addition, the Soviets have said that they will reduce plan for two years, while it studies a proposal for deploying their tanks in Eastern Europe and the European part of the thousands of small rockets in orbit. The continuation of the Soviet Union by 40,000, theircombat vehicles in Europe by Reagan program would violate the 1972 ABMTreaty, which 42,000, and their artillery by 46,000. The offers were aimed Moscow holds as a sine qua non of U.S.-Soviet relations. to strengthenthe hand of Shevardnadze, as he travels to Bonn So far, life is cozy in the condominium. Moscow can to meet with Chancellor Helmut Kohl and Foreign Minister continue to play its waiting game. As the U.S. continues its Hans-Dietrich Genscher, while Baker trots off to Brussels to slide down the slippery slope of appeasementpolici es, Mos­ explain the agreements to his NATO allies. cow maneuvers and schemes to achieve its ultimate goal­ the elimination of the U . S. military presence on the European Soviet demands will intensify continent. Moscow can promise the Sun and the Moon to Whatever surprises-real or fictitious-may be in store achieve that goal, because once the troops and missiles and for the administration, the Bush policy is clearly aimed at tanks are gone, no possible combination of forces will be achieving a withdrawal of a significantportion of U.S. mili­ able to bring them back. Soviet tanks will not have to move tary forces from Western Europe, for budgetary and other across the Elbe to gain physical control of Western Europe . reasons. If the Gorbachov initiative lightens the load politi­ The sheer magnitude of raw Soviet military might will be cally for the Bush adminstration, so much the better, reasons enough to hold the Europeans-East and West-within the the State Department. But as there is no end to the demands bounds of Gorbachov's "common European house," wher­ for appeasementfor those who have shown themselves will­ ever those Soviet troops might happen to be stationed. ing to appease, so Soviet pressure on the Bush administration And yet in the immediate aftermath of the Bush speech, for more and more concessions will be unrelenting. Com- there are very few who dare call it treason.

EIR May 19, 1989 National 61 Edwin Williams for Joyce Rubinstein; and James Clark for Michael Billington.

Arguments The applicants argued that they have satisfiedall statutory requirements for release pending appeal. First, they represent no risk of flight, or danger t(> the community. Second, the appeal issues raise substantial questions of law and fact. These issues are enumerated �s follows: 1) The defense was den�d a constitutionally adequate voir dire in violation of their Sixth Amendment right to a fair Supreme Court denies and impartial jury. This was in stark contrast to the actions of Boston federal judge Robert E. Keeton, and represented a LaRouche bond appeal refusal by trial judge Albert: V. Bryan to take any of the precautions necessarily employed in high-profile cases, which William H. Rehnquist, Chief Justice of the Supreme Court, the LaRouche case was. has denied a request by attorneys for Lyndon H. LaRouche, 2) The court deprived the defense of critical defenses, Jr. and his six codefendants for release from jail pending through denying exculpatory: material and granting the gov­ appeal. There was no written explanation for the denial, ernment's motion in limine. This was particularly crucial notice of which was received by letter dated May 11. La­ since the way the governme�t attempted to prove intent to Rouche attorneys had filed the request on May 5. Their 14- defraud, was by determining �at lenders had not been repaid. page brief stated that the seven should be freed during their Yet the defense was prevent¢ from demonstrating the pre­ appeal to the U.S. Court of Appeals for the Fourth Circuit, cise history and nature of governmentinte rference, including because 1) the case involves non-violent crimes, 2) the ap­ a government-initiatedinvohJ Dtary bankruptcy, which made plicants do not pose a risk of flight or danger to the commu­ impossible that repayment. nity, and 3) the appeal involves substantial issues likely to 3) The court erred in deQying motions for continuance, result in a reversal or a new trial. and forcing counsel to trial without giving them adequate The seven defendants were convicted in Alexandria, Vir­ time to prepare. ginia federal court on Dec. 16, on trumped-up fraud and The papers make two other arguments. First, there is no conspiracy charges. LaRouche was sentenced by Judge Al­ question that the appeal for bond is being taken in the interest bert V. Bryan on Jan. 27 to 15 years in prison, and the other of delay or will prolong the appellate process. Second, the defendants were given sentences ranging from three to five appellants are being subjected to "continuing injury" by being years. All were forced to begin serving their sentences im­ hampered in the preparation (>f their appeal, in the same way mediately, and the six male defendants are currently pris­ they were hampered in properly preparing for their defense oners in the Alexandria Detention Center. at trial. The appeal to the Supreme Court followed three separate denials of bond by sections of the Fourth Circuit Court of Appeal denied in lower court Appeals, none of which have enunciated the reason for the The Fourth Circuit Court of Appeals in Richmond, Vir­ denial. The Supreme Court papers asked that the Fourth ginia had earlier denied a motion for bond pending appeal Circuit be ordered to articulate the standard for bond, if that was submitted on April p by defense attorneys. As EIR release is not granted by Chief Justice Rehnquist. reported (April 14, 1989), the 50-page appeal brief provided extensive documentation of the constitutional abuses and Fascist justice legal errors committed during the trial, which make it likely The denial of the request by Chief Justice Rehnquist that the defendants' appeal of their conviction will be upheld. means that the highest court in the land has ratifieda blatant The brief underlined three broad categories of errors: denial of constitutional rights to a leading political figure in 1) The inadequate voir dire process; the United States. This constitutes a ratification of political 2) The denial of the defendants' motion for exculpatory use of the judiciary to the degree that can only be described material and the fact that they were forbidden to introduce as "fascist justice." into evidence the pattern of government activity against the Filing for Lyndon LaRouche, Dennis Small, and Paul defendants, and the involun� bankruptcies which the gov­ Greenberg were attorneysRamsey Clark and Odin Anderson. ernmenthad brought againstl the defendants' organizations; Clark was U.S. Attorney General under the Lyndon Johnson 3) The rush to trial (trial l>eganjust 34 days after arraign­ administration. The other attorneys were R. Kenly Webster ment), which deprived coun�l of the time required to prepare for Edward Spannaus; Brian P. Gettings for William Wertz; an adequate defense, in a ca�e of enormous complexity.

62 National EIR May 19, 1989 'Thank God for the LaRouche people,' attorneys tell New Yo rk jury

New York Supreme Court Justice Stephen Crane may have wide conspiracy" which Cardi propounded in the hearing. thrown a monkey-wrench into the strategy of prosecutors in Judge Crane inquired whether she meant to say that member­ a financial fraud case against four associates of Lyndon ship in the NCLC itself, or its executive bodies, is member­ LaRouche in New York City, when he ruled May 9 that ship in a conspiracy-and, although the prosecutor backed inflammatory statements by so-called unindicted co-conspir­ away from saying so explicitly, it was clear from the context ators-key to the testimony of at least one governmentwit­ that that was what she intended. In effect, charged defense ness, former NCLC member Christian Curtis-were not ad­ attorney Larry Hochheiser, Cardi "wants to try a RICO case missible in the case. Crane also seemed leery of the prose­ here"-i .e., under the Racketeering Influenced and Corrupt cution's implicit claim that membership in the LaRouche Organizations act-not a conspiracy; but there are no RICO philosophical association, the National Caucus of Labor charges in the indictment. Committees, constitutes membership in a conspiracy. Some observersfo und prosecutorCardi ' s position partic­ LaRouche associates George Canning, Marielle Kron­ ularly odd, since she had claimed in her opening statements berg, Robert Primack, and Lynne Speed are charged with that the defendants "just happento be"members of a political one count each of conspiracy and one count each of schemes organization; her postureat the May 9 hearing seemed to bear to defraud, in the course of raising loans for political causes out dramatically the assertions of defense attorneys that the associated with LaRouche, which the government alleges case is aimed preciselyat membership in the NCLC. they never intended to repay. In fact, government actions, including the forced bankruptcy of threeorganizat ions, made Twenty years of government persecution it impossible to repay. Prosecution and defense had clashed sharply May 4 in When the prosecution called Christian Curtis to the stand openingstatements in the case. ProsecutorCardi claimed that on May 9, prosecutor Dawn Cardi attempted to elicit from the four defendants were "no different from any other con him various statements he claimed another LaRouche asso­ artists." But defense counsel insisted that the trial itself is ciate, "unindicted co-conspirator" Paul Greenberg, had made part of a 20-year government program of persecution of to him in 1984. Defense counsel objected and a bench con­ LaRouche and his political movement. ference began, which rapidly evolved into a lengthy hearing, Cardi asserted that the case is only about financial fraud, with the jurors and Curtis excused. and the fact that the defendants "happen to be" members of During the hearing, defense attorneys objected that they the LaRouche movement is utterly irrelevant. The defendants had not been provided a list of "unindicted co-conspirators" "bilked and preyed on the investing public," she announced. by which to prepare a defense. Judge Crane thereupon con­ The drama was reservedfor the defense, which described ducted a detailed hearing, in which Cardi had to disclose the a political movement which is the target of a vast assault by name of every unindicted co-conspirator, and the co-con­ elements of the U.S. government. spirator statements she hoped to elicit from Curtis and sub­ Attorney JeffreyHoffman , representingRobert Primack, sequent "insider" witnesses. Crane ruled out a whole series told the jury that, unlike most people, Primack and the other of those statements as being inflammatory and prejudicial to defendants not only thought about changing the world, but the defense-including numerous "co-conspirator state­ have spent the last 20 years trying to do so. These people are ments" that had been allowed in testimony that helped frame not like us, Hoffman told the jury;they don't just discuss an up LaRouche and his associates in earlier trials in Boston, idea occasionallyat a cocktail party,or vote once in a while­ and Alexandria and Loudoun County, Virginia. they have dedicated theirlives to an idea. Crane also expressed concern at the theory of a "nation- Will the documents in this case show fraud? Quite the

EIR May 19, 1989 National 63 opposite; they will show these people did everything they of Man. They do what they believein. could to give lenders a proof and a claim against them, often Hochheiser called the case "frightening-like a whirl­ after the loans were made-when any "bunko artist" woula pool," pulling these innocent people down. have takenthe money and run. On behalf of George Canning, attorney Susan Wolfe The evidence will show, he said, that the people who lent asserted that, because the case revolves around (among many money were not the "investing public," dealing with IBM, issues) defendants' intent, it is vital the jury understand what but political supporters, who knew about the movement's these people did, what they believed, and believe, in. program, government harassment-and the riskiness of the Cardi called Canning an "accountant," Wolfe said, "and loans. if he were, I'm sure his parents would be proud." He could The other category of government witnesses, Hoffman have gotten a good job; he could have made money; but continued, is former members of the LaRouche movement. instead he sacrificed material things, for ideas. When things got rough, they didn't stay, like the defendants, In an October 1986 raid, Wolfe said, the government who said, ''I'm going to stay here and 'suffer the slings and took their files, raided their offices. But that wasn't enough. arrows.' " They said, "I'm scared, I'm being yelled at, In April 1987, the government threw their companies into where's a prosecutor I can go toT' bankruptcy, shut down their publications, shut down the Hoffman described how things "got rough," citing the printing presses. But that wa$n 't enough-because you can't 1982 correspondence between Henry Kissinger and then-FBI put an idea in chains . . . a:ndtha t's what the government director William Webster on crushing the LaRouche move­ wants to do. ment; or the decision by the government and Democratic Mayer Morganroth, representing Marielle Kronberg, Party chieftains, after LaRouche candidates won statewide spoke last. He reviewed a ;20-year history of government Illinois primaries in 1986, to destroy the movement. harassment, starting back in 1969 with the FBI's "Operation Thank God, he concluded, that we live in a countrywhere Mousecrap" attempt to get members of the nascent LaRouche people like these defendants-good, decent, honorable­ movement killed by anarchilits and communists in SDS. He can try to make a change. explained that documents will show FBI surveillance and theft of financialdata over years; FBI reports, formerly clas­ 'This case is frightening' sified, that gloat: "There's only $5,000 in their bank account, Larry Hochheiser, who represents Lynne Speed, began: but their phone bill's $6,2OQ-maybe they'll go under." The prosecutor says this case is not political-but how many He described the infiltration into the organization, by the people here can possibly believe it is not political? This case FBI, of FBI agents who wen� members of the American Nazi is about the Attorney General of New York prosecuting peo­ Party and the Ku Klux Klan! ple who are not criminals, but people who are active politi­ Morganroth detailed the; role of Lt. Col. Oliver North, cally. If you listen to the indictment, you might think Lynne Gen. Richard Secord, and their agents in spying on and Speed is a Bonnie and Clyde figure who got tired of robbing attacking the LaRouche movement. It's like a spy novel, he banks and decided to go into more sophisticated theft. said-but it's true; you'll see the government's own docu­ The prosecutor wants to simplify the case, narrow itdown, ments, showing it all. he warned. But truly, simplificationis falsification. The pros­ ecutor says this is not a political trial, that these people "just Curtis takes the stand happen to be" members of a political organization. The evi­ Government witness Chris Curtis spent May 10 on the dence will show it is all about politics. stand, finishing his direct testimony and undergoing cross­ I speak for Lynne Speed. Who is this crook, this gangster, examination by defense attorneys Mayer Morganroth and this defrauder? She is a young woman pursuing humanistic JeffreyHoffman . political goals; she is not a thief. She has always been ideal­ In direct testimony, Curtis attempted, within the con­ istic. She grew up in Harlem, admiring Frederick Douglass, straints imposed by Judge Crane's ruling excluding many Marie Curie, Helen Keller, Martin Luther King-and she "co-conspirator statements,I' to do as much damage as pos­ had a real-life hero in Hulan Jack, the first major black poli­ sible. Thus, he testified that he had fabricated much of what tician, the firstblack to be elected Manhattan Borough Pres­ he told people on his fundraising calls, commenting that what ident. he had said had been "in a broad context, true," but "specif­ This will become significant because one of the things ically, false." He acted out an entire fundraising call on the Lynne was involved in was raising money to publish Hulan stand, to show that he had simply acted much of the time Jack's autobiography. The book was published. This is not a during his phone calls. He also related conversations on fund­ group of crooks banding together. raising approaches he claimed he had had with defendant These people set out to develop a New World Economic Primack. Order, based on economic justice for all. These people are Late in the afternoon Morganroth began cross-examina­ dreamers-and doers. They believe in the Inalienable Rights tion, establishing that Curtis continued to draw a check from

64 National EIR May 19, 1989 the organization until roughly December 1986, for cartoon­ And you said you felt a personal, a moral and ethical respon­ ing work-although he had quit the NCLC seven months sibility-a personal responsibility? "Yes." before-and that his wife Guida had drawn a paycheck Do you still own your house? "Yes, but I don't live through February 1987. Yet, during this period, Curtis tes­ there ." "And, without getting into figures, are you aware of tified, he was meeting frequently with agents of the Federal how much it has increased in value between 1985 and 1989?" Bureau of Investigation and local police agencies, profiling "Yes." And did you dip into your own pocket to pay one cent the organization and its members. to the people whom you said you rippedoff? "No." He conceded under cross-examination that he was famil­ Not one cent? "No." And do you have any idea how hard iar with the notion of FBI infiltrators and informants-in­ the people at the defense table worked, how hard Bob Pri­ cluding specific instances of FBI infiltration of the organiza­ mack and the others worked, how many hours, to pay off tion. He conceded that the organization had been extremely those loans? Have you been charged with any crimes? "No." concerned at the possibility of FBI informants and infiltra­ Do you want to be charged with any crimes? "No." But you tors, and confirmedthat, early in 1985, he had taken his files testified here this morning that you have no agreement, for­ on his political contacts home with him, because there was a mal or informal , with any prosecutorial agency? "That's general fear in the organization that the FBI might raid the right." So you don't want to get any prosecutorial agency office and make off with the contact cards. angry at you, right? They could charge you with a crime. "And they did do exactly that, later, didn't they?" Mor­ You want to keep them happy, right? Isn't that why you're ganroth asked. here? "Yes," Curtis answered. The following day, Hoffman showedCurtis two books­ "Four hundred FBI and other agents raided the office in Dope, Inc. (published in 1986), and itl>Spanish version Nar­ 1986 and carried offthe contact cards, didn't they?" cotrajico, SA (published in 1985)-and reminded him that "Yes," Curtis answered. he had testified the day before that he had raised money for Curtis affirmedthat he did not, however, feel in the least the publication of those books. Inasmuch as Curtis had fur­ peculiar at the fact that he and his wife were making roughly ther claimed that he had lied to lenders about the cost and the $500a week from the organization at the same time they were production schedule of the books, H()ffman pushed him to briefing the FBI extensively on NCLC members "and their admit that yes, indeed, Narcotrajico had been published in weaknesses." Curtis didn't like the word "weaknesses," and 1985-at precisely the time Curtis claimed he was inventing protested that he didn't know what the word "tum" meant, a Dope, Inc. production schedule to raise loans. but the point was clear. Hoffman later asked him if, in fact, he had not considered By the same token, Morganroth also went into the FBI's that all his colleagues on the phone team, and on regional "Fist and Sweep" operations against the organization, and phone teams, and in field organizing, were acting in good FBI harassment of contributors, and questioned Curtis about faith. his decision to tum over to the FBI the names of 35 of his Curtis writhed and equivocated, arid wound up, over and own lender-contacts, complete with addresses, even though over, announcing that he couldn't give a yes or no answer. he could surmise that the FBI would visit those supporters. Thereupon, Judge Crane permitted Hoffman, over Cardi's Curtis admitted that he had applied to various federal objection, to read to the witness his own sworntestimony, at government agencies (including the CIA) for employment an earlier trial , "where you were under oath , just as you are during the same late- 1986 period, and did not deny (as he has here ," to the effect that yes, he believed that his colleagues previously attempted to do) that he had asked FBI Agent had acted in good faith throughout their fundraising activi­ Timothy Klund, in November 1986, whether his association ties. with LaRouche might affect his ability to get such a govern­ ment job. Curtis's method of lying Attorney Jeff Hoffman focused his cross-examination on Attorney Larry Hoehheiser, repre$enting Lynne Speed, several factors . invited Curtis to expand on his "meth�d." "You testified on First, Curtis's beginnings on the phone fundraising team. direct examination that in general you told the truth, but on "The firstweek you wereon the National Center phone team, the specifics you fabricated, slipped things in. That's what did you lie on the phone to raise money?" "No." "The second works for you, isn't it? That's what YOIl testified, isn't it?" week you were on the phone team, did you lie?" "No." "How A tight spot to be in: The inference was morethan clear­ about the third week, did you lie then?" "No." "And no one in trial testimony, too, he tells som� general truths, and told you to get on the phone and lie, when you were being within those, he slips in the lies ab

EIR May 19, 1989 National 65 ness of its terms" made "extremely serious penalties available virtually whenever prosecutors choose to invoke them, with­ out the identification of genuine aggravating circumstances justifying the more serious penalties." Therefore , continued Lynch, "we rely on the prosecutor's discretion to decide for us, without the benefit of prior definition by Congress, who Congress considers are the most serious offenders , and to prosecute them more rigorously. " curb on civil RICO Anyone could be targeted The concept of an "enterprise" as defined by the RICO by William Jones legislation could indeed be almost any type of association­ a business, a labor union, a government bureau, a partner­ Hearings have begun on Capitol Hill on a bill to try to reverse ship, a corporation. "In order to cover the range of legitimate some of the uglier aspects of the notorious Racketeer Influ­ activities that organized crime could seek to invade," com­ enced Corrupt Organization (RICO) legislation. Rep. Rick mented Lynch, "the definition of enterprise had to be ex­ Boucher (D-Va.), recently appointed to the House Judiciary tremely broad-so broad as to be virtually all-encompass­ Subcommittee on Crime, is the primary proponentof thebill . ing." The second element of vagueness in the RICO statute Boucher, who earlier was a member of theJudiciary Subcom­ involves the notion of a "pattern of racketeering . . . which mittee on Criminal Justice, had been working on a RICO means little more ," said Lynch "than committing two related reform bill since 1968, but with little success in getting it crimes over a period of time." One or two people, members introduced. Similar legislation has now been introduced in of a business or a church, who commit some form of "fraud" the Senate by Sen. Dennis DeConcini (D-N.M.). more than once could be the defendants in a RICO case. Since its enactment in 1970, the RICO statute has come However, "most kinds of commercial dispute can be de­ under increasing fire from lawyers and from the general pub­ scribed by the aggrieved party as some species of fraud, and, lic. Ostensibly crafted to go after the Mafia and organized given the ubiquity of the mails and interstate wire commu­ crime, RICO has been increasingly utilized in a myriad of nications, as mail or wire fraud." cases of civil commercial fraud not having the slightest rela­ "The breadth of RICO is extraordinary," said Lynch. tionship to organized crime. Particularly in its civil aspects, "Virtually any civil claim can be expanded into a RICO RICO has been used in ways that have astounded even the case." As Lynch points out, however, the more serious prob­ legislators who passed it into law. As Supreme CourtJustice lem lies not with the civil application of RICO, but with Byron White commented in his ruling on Sedima, S.P.R.I. criminal RICO. "RICO is a criminal statute with a civil ap­ VS . Imrex Co., Inc., "In its private civil version, RICO is pendage," noted Lynch. "The law makes certain forms of evolving into something quite different from the original activity criminal, and then permits persons injured by such conception of its enactors." Especially during the last eight activity to sue the perpetrators civilly for damages ....Any years, there have been definitive interpretations of RICO's overbreadth in civil RICO is therefore by definition an over­ broad language by the U.S. Supreme Court. breadth in criminal RICO as well." Now lawmakers are making attempts to regain control Although Lynch claims that prosecutors have used RICO over their Frankenstein monster. "We can't wait any longer," legislation with restraint, he noted, "This is government­ said Rep. Bill McCollum (R-Fla.), the ranking Republican not by law-but government by the men and women in the on the subcommittee. "RICO is not being filedagainst mobs Department of Justice who will decide who the offenders will and mobsters, but against churches, government officials, be." "Is a law justifiable," he adds, "whose lack of abuse is and corporate leaders." Although one must laud the efforts dependent on the restraint of the Department of Justice?" being made to reform the seriously flawed and misused leg­ RICO's "vague terms make it potentially applicable in islation, the question at this stage of the game is, will they be such a wide variety of completely different situations, and enough to get the genie back in the bottle. allow prosecutors to invoke it at will in cases that are no more Part of the reason why the "RICO Reform Act of 1989" serious or threatening than ' ordinary' criminalbehavior. " For was insufficient was pointed out by the firstwitn ess, Gerard this reason, he considered RICO "a dangerous instrument." Lynch, a professor of law at Columbia University, who was Noting that the only change in criminal RICO made by the called by the committee to give a general pictureof the RICO bill now pending "is to further expand the list of predicate legislation and its problems. It was Lynch's contention that crimes," he felt that the approach was "essentially an effort the problem with RICO is not simply due to its interpretation to apply an extremely elaborate band-aid to a deeply flawed in the courts, but in the way in which it was originally for­ statute." Lynch's proposal was to appeal RICO altogether, mulated by the Congress. Lynch pointed out that the "vague- noting, however, that this would be a political "hot potato ."

66 National EIR May 19, 1989 tute and was recently elected to the Soviet Congress of Peo­ ple's Deputies. "We need very much that you open a second front against the cold war," pleaded Sagdeyev, alluding to the Soviet-U.S. alliance against the Nazis during World War II. Sagdeyev said that he ran his campaign for the Supreme Soviet on the program of getting control over "our own mil­ Red carpetfo r Red itary-industrial complex." brass on Capitol Hill 'Help Gorbachov' There was one clear message in their presentations. As by WilliamJones Sagdeyev expressed it, there is still a lotof opposition to the Gorbachov policies because the psychological "trauma of World War II is a very serious one." Therefore it was imper­ Rep. Les Aspin (D-Wis.), chairman of the House Armed ative that the West respond to GorbachQv's initiatives before Services Committee, is putting on the dog for his Soviet internal opposition put an end to their realization. "People friends whom he had invited to testify before the committee ask," said Kokoshin, "How can we continue making these on Soviet military plans on May 9. The rationale behind the cuts without a response from the West?" unprecedented invitation is that if the U. S. Congress had Sagdeyev claimed that Soviet military spending would concrete knowledge of Soviet plans, it could plan its own be cut by 1.5% this year and would go down 7% next year, defense budget accordingly. in order to reach Gorbachov's goal of 14.2% in 1991. When This is not the first instance of such touchy-feely ex­ Aspin asked Sagdeyev when the Soviets would publish their changes between the Soviets and the Aspin committee. In defense budget, he responded, "We would also like to know," March Andrei Kokoshin, director of the U.S.A. and Canada then argued that it is not such a simple thing to reduce one's Institute, testifiedbefore the panel. On May 5, the panel held forces so quickly without serious economic dislocations. He an informal get-together with some retired Soviet generals then noted that a commission had been �ppointed to examine and admirals, led by GRU Lt. Gen. Mikhail Milshtein. Later the "socio-economic aspects" of the cuts. in June, Marshal Sergei Akhromeyev, the chief military ad­ Rep. William Dickinson (R-Ala.), Who explained some­ viser to Gorbachov, will be testifying before the committee. what tongue-in-cheek that there was a significant cadre in the The plans to have the Soviets testify elicited some caustic U . S. Congress which habitually takes the side of the Soviet remarks from a number of congressmen. Sen. James Exon Union against the United States, asked the witnesses if they (D-Neb.), the firstsenator to back the INF Treaty, not exactly didn't findit easier working with the Congress than with the a fire-breathing conservative, commented that he found the administration. They avoided answering the question. Dick­ idea "scary." "Evidently Gorbymania has struck with a ven­ inson then asked if they thought it was feasible that the United geance in the Halls of Congress ," said Exon. "lfwe are going States restrict its plans for an ASAT systc::m, when the Soviets that far afield, why not invite Mr. Qaddafi over to give us have their own system in place. With a look of mild astonish­ expert testimony on stopping terrorism?" Exon and a few ment, Sagdeyev answered, ". have my doubts that my col­ others didn't want to make the "committee process a forum leagues have control over an ASAT system." "And yet . know for Soviet propaganda." you have," replied Dickinson, "but it's probably not much And yet that is precisely what it became-although the use arguing the point here ." Soviets have come a long way from delivering their propa­ Rep. Richard Ray (D-Ga.) wanted to know why there ganda a la Khrushchov, pounding his shoe on the table. The was a continued modernization of the Soviet military appa­ sleeker Gorbachov style has permeated Soviet diplomacy. In ratus, including an increase in tank production , when the fact, it seems as if Gorbachov has changed the old Russian Soviets were aiming at reducing their military might. "We proverb, "When you run with the wolves, howl like a wolf," have a significant production of tanks," Kokoshin admitted, to "When you run with the sheep, baa like a sheep" -at least "but we will cut that production, although concrete figures until you're ready to gobble them up. Indeed, one would be will not be available until June. Marshal Akhromeyev will astounded by the sheep-like nature of Soviet policy as pre­ bring them with him when he testifiesbefore the committee ." sented by these witnesses. Kokoshin stressed the need for reducing tactical nuclear The Soviet representatives were of course no amateurs . weapons and took exception to the suggestion made by Sen. Andrei Kokoshin is deputy director of the U . S .A. and Canada Sam Nunn (D-Ga.) that reductions in ! short-range nuclear Institute, an organization whose sole purpose is to monitor forces be delayed until there are cuts in conventional forces. the movements of thought and changes in political philoso­ Kokoshin also stressed the need for a third zero-complete phy on the NorthAmerican continent. Roald Sagdeyev is the elimination of short-range nuclear missiles-the issue which former director of the Soviet Union's Space Research Insti- is creating a major rift in the NATO alliance.

EIR May 19, 1989 National 67 congressional Closeup by William Jones

ouse panel wants the U.S.-Japan FSX fighter project. support the agreement with Japan. The H The proposal would significantly in­ S&L bailout on-budget deal is now being debated on the Sen­ crease the role of the Congress in mon­ ate floor. In order to killthe deal, both In spite of the pleading of Treasury itoring agreements negotiated by the houses of Congress would have to vote Secretary Nicholas F. Brady before Executive Branch. against it and then override a virtually the House Ways and Means Commit­ Administration officials voiced no certain presidential veto by a two­ tee on May 9, the committee voted 25 immediate objections to the Byrd pro­ thirds majority, an eventuality which to 11 to keep the bail-out of bankrupt posal, although they stressed that they is deemed highly unlikely. savings and loans institutions on­ were looking at it for the first time. budget. Supporters of the vote say that The Byrd stipulation would require that putting the plan on-budget will save "no less than 40%" of the work on the taxpayers as much as $4.5 billion over project be given to American compa­ ongress to consider 30 years . C nies and that the United States get at resolution on Lebanon For the administration, the deci­ least 40% of the work in supplying On April 25 a resolution was intro­ sion will force cuts elsewhere in the spare parts as well. duced in the House which called on budget, in order to meet the require­ Other proposals, such as the reso­ the Presidentto act against the present ments of the Gramm-Rudman law . lution put forward by Sen. Alan Dixon Syrian genocide in Lebanon. The res­ Secretary Brady called the vote a (D-lli.) and Sen. Alfonse D'Amato (R­ olution, introduced by Rep. Edward "mistake," warning that "if adopted, N . Y .) would stop the deal altogether. Feighan (D-Ohio) urged the President this action could force us to go back to Some lawmakers are planning to in­ 1) to call for an immediate cease­ square one on both the budget and the troduce an amendment which would fire among the parties in Lebanon and savings and loan plan. . . . It could ban Toshiba Corporation frompartici­ the removal of all foreign military mean months of stalemate." If the ac­ pating in the project. A branch of To­ forces and disbanding of all paramili­ tion passes the House and Senate, it shiba was earlier accused of selling tary forces; would increase the budget deficitover banned goods to the Soviet Union. 2) to urge all parties in Lebanon to the next three years by $50 billion. Secretary of Defense Richard respond to the international call for an That's not the only problem facing Cheney was on the Hill on May 10, immediate ceasefire and to undertake the Bush bailout plan. One official of testifying in favor ofthe bill, which he immediate discussions regarding in­ the Federal Home Loan Bank Board, said was advantageous to the United ternal reconciliation; which regulates the industry , said the States both militarily and economical­ 3) to support international efforts, agency would soon report that almost ly . Later in the evening, at a speech at including appointment of special em­ $8.5 billion was withdrawn in April, the Center for Strategic and Interna­ issaries by the U.N. SecretaryGeneral primarily because of higher interest tional Studies, Cheney emphasized, and the League ofArab States, to work rates in the money market funds. Ac­ "We asked the Japanese to enter into with the parties in Lebanon to imple­ cording to the New York Times, since that agreement, they didn't ask ment a cease fire and start a process of November the industry has lost almost us ....The option was that the Jap­ internal reconciliation; and $4 billion in deposits, raising con­ anese would go it alone." 4) to support actions to encourage cerns that the industry contribution to Nevertheless, some senators are the fulfillment of the constitutional the bail-out will be significantly less rattling their rhetorical sabers. Sen. mandate to elect a new President in than the White House projected. Jesse Helms (R-N.C.) denounced the Lebanon. Japanese insistence on building their own fighter plane as "pure protection­ ism." "They skinned us many a time," Congress wants more said Helms. "They skinned us real bad Senators pressed Bush say over deal with Japan in December 1941, and they are skin­ on 'global warming' hoax Sen. Robert Byrd (D-W.Va.) has in­ ning us with the FSX." On May 9, senators from both parties troduced an initiative which would The Senate Foreign Relations pressed President Bush to reverse the give Congress a more active role in Committee voted 9-8 on May 1 0 to administration's decision not to seek

68 National EIR May 19, 1989 an international convention to deal house" bill, commented, "George firstma jor domestic policy showdown with alleged "global wanning." In a Bush said in the campaign he wanted with President Bush, who has threat­ letter to the President, Sen. John Cha­ to fightthe greenhouse effect with the ened to veto the Qleasure. The vote fee (R-R.I.) said that such a conven­ White House effect. We may be get­ followed brief debate. tion proposal , which is supported by ting a little bit of the whitewash ef­ "What we consider today is a mat­ both the EPA and the State Depart­ fect." ter of elemental fairness," said House ment, could be one of the "bold new Apparently succumbing to the Speaker Jim Wright (D-Tex .). "It goes initiatives" that could "bolster your pressure, President Bush on May 11 to the heart of what our country is all reputation as an environmental Presi­ offered to host a "global workshop" in about." House Democrats who have dent. " Washington in the fall to prepare for been pushing the $4.55 figure against The idea of the Bush administra­ later negotiations on an international the objections of the administration, tion taking the initiative on the issue treatyto limit the alleged problem(see which doesn't want it to surpass $4.25, was initially rejected by White House National News) . probably do not have the two-thirds Chief of Staff John Sununu as prema­ vote necessary to override the inevi­ ture. table veto. In a separate letter, circulated by Both sides are working to draft Sen. AlbertGore (D-Tenn.) and signed Negotiators agree on post-veto battIe plans. by 12 Democrats and one Republican, $1.17 trillion budget Sen. John Heinz of Pennsylvania, the Senate and House negotiators agreed administration was urged to join other on May 11 on a $1.17 trillion budget Westernpowers in supporting a global for Fiscal Year 1990, a spending plan warming convention . Administration urton warns millions that puts serious constraints on Pen­ B sources said that the proposal was could die of AIDS tagon spending, among other things. strongly opposed by the Energy De­ Rep. Dan Burton (R-Ind.) commented The budget claims to leave a deficitof partment and other agencies that fear in the House floor debate on May 4 $99.7 billion. it will result in restrictions on fo ssil that millions of Americans will die, if In one of the many compromises fuels, which release carbon dioxide. the present rate of increase of AIDS on the budget, the Senate agreed to The whole issue was highlighted cases continues unabated. drop a provision that would have guar­ "In 1989 so farwe have had 10,452 when it was revealed on May 8 that anteed $1. 1 billion for public housing new cases in the first three months the written testimony of James E. subsidies . The spending plan allows alone," said the congressman, "which Hansen, director ofNASA 's Goddard $299.2 billion in defense spending, means that if that percentage contin­ Institute for Space Studies, had been which is $44.2 billion less than the ues through the end of the year, we changed by the Office of Management amount needed to keep up with infla­ will have seen more than a doubling and Budget in order to make it con­ tion. An additional $17 billion would of the people dead or dying of AIDS form to administration views. The be spent on foreign aid. since 1987." Hansen testimony, which helped fuel Both houses are expected to give Burton called for a routine testing the debate about the "greenhouse ef­ final approval to the document next program to find out exactly how seri­ fect," had been augmented by a para­ week. graph which weakened Hansen's con­ ous the problem is. "We have no idea clusions by calling current computer how many people areinfected with the models unreliable. "My only objec­ disease today. There are many people tion [to that alteration] ," said Hansen, that think it is transmitted in ways that "is being forced to change the sci­ House approves have not yet been admitted to by the ence. " minimum wage biD CDC. Those things need to be uncov­ This gave rise to caustic com­ On May 11, the House approved 247 ered. We need to findthat out, and we ments from congressmen on adminis­ to 172 legislation raising the hourly are not going to be able to find it out tration policy. Sen. Timothy Wirth (D­ minimum wage from $3.35 to $4.55 until we have a testing progam," he Colo.), one of theauthors of a "green- by 1991. This threatens to bring the said.

EIR May 19, 1989 National 69 NationalNews

der investigation. But Partee explained,'The thing that makes the law work for us, that makes people respect us, is that our posture Law enforcement to be is consistent. We have a life taken here." Illinois lawmakers get The Club of Life and several other pro­ war on drugs focus life groups offered "full support regarding three :anti-Satanism bills William Bennett, the Bush administration's the investigation into the murder of the in­ Three pieces of anti-Satanism legislation National Drug Director, in a May 7 appear­ fant, Samuel Linares. The events and news have now been introduced into the Illinois ance on CBS-TV's "Face the Nation," said coverage surrounding this case are rapidly state legi�lature. that the firstphase of the war on drugs will building into a national drumroll to excuse Rep. Robert Regan, the sponsor of the focus on law enforcement, rather than edu­ outright murder as a 'right. ' bills, said one of the bills would establish cation and rehabilitation. "We condemn those who seek to replace "inducement to commit suicide" as a crime. The elements of the expanded plan, the moral foundation of our country with Regan pOinted out that had cult leader Jim which Bennett said would be implemented situation 'ethics' and who would reduce our Jones catriedout murders of the character "within days or weeks," include the reas­ constitutional law to one based on popular of the JOBestown massacre and survived, he signment of military judges and prosecutors opinion. could not be prosecuted under current Illi­ to the circuit of the Washington, D.C. Su­ "We call upon you to uphold our na­ nois state law. Two teenagers have commit­ periorCourt to help with the backlog of drug­ tion's original commitment to the principle ted suici�e as part of Satanic pacts in his relatedcrime cases now stalled in the courts; of the inviolability of all human life-es­ district �cently.

the expansion of federal prison space to al­ pecially for those deemed 'unworthy of life' Two I other bills sponsored by Repre­ low the incarcerationof more convicted drug by today's standards," their statement read. sentative Regan would increase the penal­ felons; and experimentationwith heavy fines ties for dimes that are performed in the con­ and boot camp-style sentencing for casual text of ri�alistic activity. Regan said that he drug users and first offenders to create drafted his legislation aftersponsoring for­ strongerincentives for them to give up drugs. ums on the problem with hundreds of law enforce�ent officials. He expectsthe legis­ Bush defense plan lation to pass the House easily, based on the billion short Criminal Law Committee support for the $100 legislation, but thinks that Senate passage The General Accounting Office has con­ may be Iporedifficult to secure. Prosecution urged in cluded that President Bush's already shrun­ ken five-year defense plan is still at least Linares child-killing $100billi on short of the funds needed to A coalition of pro-life groups urged the Chi­ carry it out, according to press accounts on cago State Attorneyon May 8 to continue to May 10. investigate the Linares child-killing, after The GAO is expected to make this point Bushi backs conference enormous pressure was brought to stop Cook when the Senate Armed Services Commit­ County State's Attorney Cecil Partee from tee meets to explore whether the Bush de­ on 'Q-reenhouse' hoax his announced intention to investigate the fense blueprint calls for acquiring more Presiderlt Bush committed the United States case as first-degreemurder. weapons than the budget can afford. to backipg an international conference on The national media is making a hero out About half the $100bill ion arises from the environment after meeting with Dutch of Rudy Linares, the 23-year-old Chicago what the GAO claims are unrealistic figures Prime Minister Ruud Lubbers, White House man who, on April 26, held nurses at Pres­ projected on inflation. The Pentagon priced spokesman Marlin Fitzwater said May 10. byterian-St. Luke's Hospital at gunpoint its acquisition at a figure of 1.7% through Calling a conference and sponsoring a while he removed his son from life-support 1994. Most of the rest of the $100billion treaty on global warming, however, are and held him until he died. The 15-month­ shortfall stems from the combined services considered two separate issues, the White old child, Samuel Linares, choked on a bal­ blueprints costing more than the downsized House made clear. loon last summer, cutting off oxygen to the Bush defense budget provides. A faftion of Congress, William K. Reil­ brain. Since then, the child has been on a Defense Secretary Richard Cheney has ly, administrator of the Environmental Pro­ respirator, and was labeled "in a persistent strongly defended the Pentagon budget tection Agency, White House Counsel C. vegetative state," a deliberately vague term against charges by Rep. Andy Ireland (R­ Boyden i Gray, and Assistant Secretary of that does not mean "terminal. " Fla.) that it is underfunded for the five-year State fo� Oceans and International Environ­ Already one judge has reportedly said period. "Andy doesn't know what he's talk­ ment F�d Bernthal, have been lobbying ag­ privately that he intends "to stop this thing ing about," Cheney said earlier this year. gressiveh for this treaty, according to the as quickly as possible," referring to the mur- Ireland then commissioned the GAO study. May lOiWashington Post. They have been

70 National EIR May 19, 1989 Briefly

• DWAYNE ANDREAS, of the pressing Bush to use the meeting of the In­ rotate once on its axis (the length of its Archer Daniels Midland grain cartel tergovernmental Panel on Climate Change "day"), and it rotates in a retrograde direc­ firm, writes in the Russians' Inter­ (IPCC), starting May 15 in Geneva, to de­ tion. Magellan's sophisticated radar will map national Affairs journalthat the U. S. mand a global treaty to severely limit the about 90%of the planet's surface and "see" must "couple the Soviet economy with emission of so-called greenhouse gases. any features that are at least 300feet in size. the world economy" to "have the The drive to impose a global ecological It will gather a larger amount and more de­ U.S.S.R. share t/lis burden," mean­ treatywas set back in early May when White tailed data about Venus than all previous ing Third World debt. House Chief of Staff John Sununu rejected spacecraftcombined. the move as premature and in need of further • DAVID ABSHIRE, close friend cost analysis. of Henry Kissinger, is the forgotten The U.S. delegation to the IPCC meet­ man in the Iran-Contra affair. Who ing in Geneva, which will be led by Bern­ else would have been responsible for thal, "has been instructed to discuss the pos­ the fact that documents that turnedup sibility of a convention and support further Anti-abortion groups during the Oliver North trial were study, but not to endorse it. 'We were told never turned ove.. to the Iran-Contra not to cross that line,' said one official," the face Gestapo tactics congressional committees? Abshire Post reported. An account of the breakup of an anti-abor­ was hired by President Reagan to The Post said, "The instructions 'frus­ tion demonstrationpublished in Rescue News handle the scandal. trated' Reilly and other proponents of a con­ Brief, on events which occurredMarch II, vention, according to a knowledgeable 1989 at an abortion clinic in Pittsburgh, • HENRY CATTO, the new U.S. source. They fear that Washington will lose Pennsylvania, gives an alarming picture of ambassador to Great Britain, told a the initiative to other nations, even though the Gestapo-type tactics being used against British television interviewerthe night the EPA has done the cutting-edge work on demonstrators. of May 2, "Of cOlJrsethere is," when the causes and effects of global warming and After 124 people were arrested, "Bru­ asked, "Is there really a specialrela­ is more advanced in developing solutions tality startedon the bus ....People were tionship?" between the United States for dealing with it. " billy-clubbed, kicked and punched. Police and Great Britain. Asked if the dragged women on the bus by pulling up Americanrelationship to Britain were shirts and bras over their heads, exposing like American relations with Japan or them in doing so. " Police "removed their ID West Germany, Catto answered, badges" and refused to be identified. "Absolutely not." Magellan starts new Demonstrators were denied food for 30 hours. Men weretaken to a mental hospital, • WILLIAM WEBSTER, direc­ era of space science and the women to county jail, where "there tor of the CIA, professes loyalty to For the first time since 1978, the United was foul language, obscenities, and threats the old southernConfederac y, a sen­ States has launched an unmanned spacecraft of putting woman rescuers in rooms with ior European intelligence officer re­ to another planet, Magellan, which began male prisoners to be sodomized and raped. ports. Privately, Webster is wont to its 15-month journey to Venus after being Women's noses were pulled and twisted to express the wish that "we" had won deployed from the Space Shuttle Atlantis on force them to walk. They were then forcibly the Civil War, instead of the North. May 4. stripped by both male and female guards, He points favorably to such phenom­ After it is checked out in Earth orbit, dragged, kicked, and punched. Female res­ ena as statues of military men in Magellan will firean Air Force upper stage cuers were fondled, verbally abused, and Richmond, Virginia . that point in a to send it off toward the Sun. At times of threatened continually." One demonstrator northward direction. optimal launch, it would only take a space­ with asthma was harassed for 15 minutes craft four months to go from the Earth to before given oxygen. Another women was • WILLIAM FERGUSON, a 27- Venus. But in order to launch both Magellan tortured by the warden, who pulled her fin­ year-old sales representative from and the Galileo probe to Jupiter during this gers back near to the breaking point. Boston, Massachusetts who has been year, it was determined to have Galileo first The attorneyfor the rescuers was denied on a hunger strike to protest the im­ spend four months going to Venus, where it access to all demonstrators. They were re­ prisonment of Lyndon LaRouche, re­ will get a boost from the planet's gravita­ leased with the warning, "Next time, you'll ceived prominent coverage in the tional field, and then head toward the outer be here a lot longer and it will be more than Black American newspaper in New Solar System. just a display of bodies. " York May 8. Ferguson discussed Venus is an intriguing planet, similar in "The city, county, and state govern­ LaRouche's "Food for Peace" initia­ size and distance from the Sun as Earth, but ments involved have totally denied that any tive, and his activity to halt genocidal with a searing surface temperature of over wrongdoing has taken place," according to policies toward minorities. 900°F. It takes 243 Earth-daysfor Venus to the Rescue News Brief.

EIR May 19, 1989 National 71 Editorial

A tale ojtwo ju ries

Whatever complaints Lt. Col. Oliver North may have ington in Alexandria, Virginia last winter, was shame­ about his trial-and he should have quite a few-the fully different. The North jury spent 12 days in their jury is not one of them. Not only did Judge Gerhard deliberations; the LaRouche jury spent less than 12 Gesell take great care in selecting the jury over a span hours . This averaged 15 minutes per count for the 48 of many days, but the North jury's deliberations were separate "guilty" verdicts they returned on each of the more or less a model of conscientious and thoughtful counts against seven defendants . The North jury aver­ jury conduct. Edward Spannaus, EIR's law editor and aged one day per count. now a fe llow political prisoner with Lyndon LaRouche, At 15 minutes a count, the LaRouche jury couldn't has contributed the following observations on this sub­ have read any documents; they didn't have the time. ject: There were voluminous trial exhibits submitted to that In interviews after the trial , the North jurors said jury, and in fact Judge Albert V. Bryan, Jr. had prohib­ they found the Marine officer guilty only on those of­ ited witnesses from reading aloud at trial from docu­ fenses for which they believed he had responsibility ments, saying that the jury could read the documents alone, and where they felt North knew he was wrong­ for themselves. such as destroying documents and accepting a home Obviously they didn't. They couldn't have even security system. On 9 of the 12 counts , for which the taken the time to consider the evidence pertinent to each jurors believed that President Ronald Reagan or others count. of North's superiors were responsible, the jurors ac­ Who railroaded the LaRouche jury? To all indica­ quitted North in their verdict handed down on May 4. tions, it was the jury foreman-Buster Horton-a U. S. On a tenth count, they split the verdict and found North Department of Agriculture representative on an elite gUilty on only part of the offense charged. inter-agency task force that deals with "emergency pre­ In so doing, the jurors ignored Judge Gesell's in­ paredness" and sensitive matters of national security. struction , in which he said that following orders was no Ironically, Oliver North was a member of that same defense. The jurors apparently believed that North was task force, along with representatives of the FBI and being used as a scapegoat, and voted accordingly. other intelligence agencies. (For the jurors not to follow the judge's instructions The defense only learned of Horton's "secret gov­ on the law is not without precedent. In the early years ernment" affiliations aft erthe trial . There was nothing of our republic, juries of citizens regarded themselves to prevent a Buster Horton or any other ringer from as judges of both the facts and the law . Today , juries slipping onto the LaRouche jury. Unlike Judge Ge­ are instructed to accept the law as the judge gives it, sell-who took widely protested precautions to ensure and to only decide on the "facts" -a distinction some­ a fair and impartial jury-Judge Bryan in the LaRouche times impossible to make .) case ridiculed defense efforts to probe for bias during The Oliver North jury spent most of its time study­ juror selection as a "smokescreen." He seated the jury ing documents, and didn't start its actual deliberations in less than two hours. until the 10th day . According to press reports , the jurors While there are grave questions as to whether Oliver were skeptical of the testimony, �specially from wit­ North's case should ever have been brought to trial , he nesses who were given immunity from prosecution, at least was tried before a judge who upheld his consti­ and placed more trust in written documents. tutional duty to find a reasonably impartial jury . Lyn­ The conduct of the jury in the trial of Lyndon La­ don LaRouche , still in jail without bond, was not so Rouche and six associates across the river from Wash- fortunate .

72 National EIR May 19, 1989 Turning Defeat· into Victory

A Total War Strategy Against Peki ng

by General T'eng Chieh

A book-length presentation on the nature of warfare, which begins with a discussion of the traditional Chinese philosophy of benevolence, and identifies the revolutionary democracy of the entire people as paramount.

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campaign before the United States faces a new strategic crisis on its Southern Flank.

Americans have been told that there is a crisis in This 135-page report, now updated, provides: Panama because a "narco-d ictator" rules. That the • A "Who's Who" in the drug mob's campaign to over­ United States government has mobilized to drive him throw Panama's government; fr om power. That only when Defense Force Com­ • The facts on how the Establishment's secret gov­ mander General Manuel Noriega is out of the way, ernment set up the war on Panama, why they did will Panama be safe for democracy, and U.S. interests so, and how the Soviet Union will benefit fr om it; in the region protected. • The story of how that liberal Establishment, through Is this true? The answer is no. 'On this, the Reagan David Rockefeller's Trilateral Commission and the administration is wrong, dead wrong. New York Council on Foreign Relations, created.the "offshore" banking center in Panama, to handle their Did you know, that the so-called "democratic" oppo­ - Sition movement which the State Department seeks debt-and-drug looting of South America; to install in power is led by Nazis, drug-traffickers, • A proposed alternative strategy, based upon the drug-money launderers, advocates of narcotics legal­ industrial development of Panama. With the long­ ization, and arms-traffickers? overdue construction of a second, sea-level Canal­ the necessary centerpiece of a booming Ibero­ Did you know that the liberal Estab lishment's "secret AmericanCommon Market-Panama can break its government" created the crisis in Panama, lock, stock dependence on the "offshore" economy owned by and barrel, as an excuse to bring those drug-runners the international banking cartel. to power? $100 per copy, postpaid. That the campaign against General Noriega is being run by the same team which was caught trading arms­ fo r-hostages in the Iran-Contra scandal?

That the attack on Panama went into full gear when Panama's military angered international bankers, by seizingbank accounts caught laundering drug-money? SPECIAL REPORT Ifyou had read EIR 's Special Report, you would know.

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