env.ironmentalis � - .. .- -

-- Why U.N. plans for 1IVorid government must be stopped

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Make checks payable to: EIR News Service, Inc. p,o, Box 17390 Washington, D,C, 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh Assistant Managing Editor: Ronald Kokinda From the Editor Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward ' Spannaus, Nancy Spannaus, Webster Tarpley, ot long ago, the front pages of the major U.S. newspapers were Carol White, Christopher White N Science and Technology: Carol White filledwith multicolumn stories about new studies of the alleged threat Special Services: Richard Freeman of pesticide residues in fruits and vegetables. Credulous mothers Book Editor: Katherine Notley Advertising Director: Marsha Freeman were encouraged to spend the extra time and expense to travel to Circulation Manager: Stanley Ezrol the nearest kooky organic food market in order to allay the remote

INTELLIGENCE DIRECTORS: potential of long-term neurological damage to children which these Agriculture: Marcia Merry pesticides might cause. This and related hoaxes are debunked in this Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, week's Science Technology section. Paul Goldstein & Economics: Christopher White Meanwhile, the allies of the same "environmentalist" quacks European Economics: William Engdahl who spread such scare stories through the media, are conspiring Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus openly to inflict truly dangerous toxins upon the. nation's children Medicine: John Grauerholz, M.D. and youth. I refer to the drug legalization lobby, which Lyndon Russia and Eastern Europe: Rachel Douglas, Konstantin George LaRouche's allies set back at the end of the 1970s, but which today Special Projects: Mark Burdman presumes to be on the verge of victory, thanks, abQve all, to the huge United States: Kathleen Klenetsky "free-market" financial interests which made sure that the war on INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura drugs trumpeted under Reagan-Bush was never really fought. The Bogota: Jose Restrepo details are in the Feature. : Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen If you want to measure how seriously the drug-environmentalist Houston: Harley Schlanger counterculture has contaminated the U.S. national consciousness, Lima: Sara Madueiio Melbourne: Don Veitch just ask yourself how many citizens, or even policymakers, are Mexico City: Hugo Lopez Ochoa aware of the real problems confronting the world. The most serious Milan: Leonardo Servadio New Delhi: Susan Maitra strategic threat centers around Russia and the former Soviet Union, Paris: Christine Bierre as we report in the lead International articles, while our Economics Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson lead shows the treacherous role of the U.S. Federal Reserve in in­ Washington, D.C.: William Jones creasing that danger. Wiesbaden: Goran Haglund The articles on Iraq, Somalia, Pakistan, and Sudan constitute a EIR (ISSN 0273-6314) is published weekly (50 issues) powerful exposure and refutation of the pretensions of the United except for the second week of July, and the last week of December by EIR News Service Inc., 333'1, Nations' "new world order." Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-70/0. For subscriptions: (703) 777- In Investigation, we initiate the serialized translation of the key 9451. document affecting current history in South America: "The Truth European Headquarters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, about Carlos Andres Perez," Venezuela's former President and the D-6200 Wiesbaden, Otto von Guericke Ring 3, D-6200 Wiesbaden-Nordenstadt, Federal Republic of Germany favorite continental puppet of the same international banking clique. Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig The best hope for the Americas lies in the complete political destruc­ In Denmark: EIR, Post Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 tion of CAP, and this pamphlet-recently reprinted in the 90,000- In Mexico: EIR, Francisco Draz Covarrubias 54 A-3 circulation Venezuelan daily Diario de aracas-is intended to Colonia San Rafael, Mexico DF. Tel: 705-1295. C Japan subscription sales: O.T.O. Research Corporation, advance that process. Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821.

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Interviews Science & Technology Economics

49 Dr. Ali Elhag Mohamed 14 Environmentalists gear up 4 Corrupt Fed runs economic Sudan's minister of economic anti-pesticide hoax warfare to prop up banks planning and investment, Dr. Ali The most stringent state surveys E. Gerald Corrigan, the president of Elhag led the Sudanese government show pesticide residues far below the Federal Reserve Bank of New delegation at the peace talks with EPA standards, which themselves York, has resigned from that post SPLA rebels in Abuja, Nigeria. are set far above the hazardous and 'will join the board of the newly level. Why the scare then? Dr. created Russian American 66 Lewis du Pont Smith Thomas H. Jukes reports. Enterprise Fund-a vehicle for A Du Pont heir and an associate of lootj.ng the Russian economy. Just Lyndon LaRouche, Smith has been 16 U.S. health risk testing is what you'd expect from the cronies touring Europe and the United 'worthless' of George Soros. States to dramatize the book Prof. Aaron Wildavsky exposes the Travesty, which tells the story of fraud behind "health risk 6 SOlOS out to devalue mark, the Anti-Defamation League and assessment," at a Washington, attack U.S. Cult Awareness Network's aborted D.C. conference on the theme plot to kidnap him and his wife. He "Hazardous to Your Health: 7 Behind China's economic gave this interview to the Swedish Toxics, Torts, and Environmental chaos lies boundless anti-drug magazine Stoppa Bureaucracy. " Knarket. corruption

9 Currency Rates Departments Book Reviews 12 Business Briefs 10 Report from Bonn 63 Witnesses for the German fertilizers for African prosecution farmers . Cover, EIRNSI Inside the Cult, by Marc Breault Photocredits: Laurence Hecht. Pages 23, 24, 25 , and Martin King; and See No Evil: 11 Andean Report 56, 66, EIRNS/StuarfLewis. Page Blind Devotion and Bloodshed in Colombia oil find sparks policy 28 left to right: Javier Almario, El David Koresh' s Holy War, by Tim brawl. Espectador, Carlos de Hoyos. Page Madigan. 35 *RNS/Guggenbuehl Archive. 51 Report from Rio NGOs assault Brazil on Investigation environment.

54 The truth about Carlos 72 Editorial Andres Perez Your children are being abused. Part 1 of a series on the recently suspended President of Venezuela, the Anglo-Americans' favorite puppet in lbero-America, who is now facing criminal charges for corruption. From a pamphlet circulated by the Venezuelan Labor Party and the lbero-American Solidarity Movement. Volume20. Number29. July30. 1993

Feature International National

32 Russian nuclear missiles 60 Declare national can still destroy the world emergency ito recover from Lyndon LaRouche commented on flood recent developments in Russia, Restoring the vast area devastated "We are now at the beginning of by floods will require declaring and what could become World War III. acting on a nationwide economic unless we come to our senses." emergency. AS of now, the U.S. economy simply does not have the 34 The Russo-Tajik output potential to produce the Drug consumption paraphernalia is flaunted at a New agreement and its political physical goods needed to rebuild York City "head shop" in 1980, the year when the and improve the water resources drug legalization lobby was being pummeled at the effects on Central Asia polls by the National Anti-Drug Coalition and its al­ By guest commentator M. Babur. system of the country . lies. Today, the drug lobby thinks it has a better chance. 38 Iraq three years after the 62 LaRouche appeal: Fourth war: genocide in a test tube Circuit kills oral argument 20 Drug legalization: It must be stopped, again 41 Italy challenges 'new world 65 Did ADL t�y to impede San From London to Washington to Francisco probe? Bolivia, the drug legalizers, disorder' in Somalia representedby the Inter-American 66 'Dare to be as courageous Dialogue, the Drug Policy 42 All Italy knows who the Foundation, and a network of enemy is as Sweden's King Gustavus private organizations affiliated with III' the United Nations, are on a drive Somalia: a bad end for the An interview with Lewis du Pont 44 to legalize the drugs that destroy the U.S. empire Smith. minds of children and the sovereignty of nations. 68 Congressional Closeup 45 Washington's handprints found in Pakistan crisis 22 United States: Drug decrim 70 National News management is coming through the back door 47 Corrupt French elites launch new McCarthyite 26 Ibero-America: Drug inquisition legalization back on the agenda 49 One doesn't need the IMF or World Bank to survive 26 EIR warned of drug An interview with Dr. Ali Elhag legalization push in 1991 Mohamed.

29 Bush's phony war on drugs 52 International Intelligence paved the way TIillEconomics

CorruptFed nms economic warfare to prop up q I anks I

by John Hoefleand Scott Thompson

E. Gerald Corrigan, the long-time president of the Federal sian minerals and other commodities, and are dumping them Reserve Bank of New York, has resigned from that post and on western markets-in the c,se of Europe, at about 50% of will join the board of the newly created Russian American the price of comparable European products. The result is Enterprise Fund, whose nominal aim is to increase U.S. that cheap Russian labor is replacing more adequately paid investment in Russia, but which is actually a vehicle for western labor, and western companies are going bankrupt. further American looting of the Russian economy. Since most of these minerals are bought with dollars, the In this capacity, Corrigan will be again working with his result is a huge dollar windf�l for the Russians, primarily friend George Soros, who along with his stooge, Harvard the nomenklatura. The dollar, which was worth about 200 professor Jeffrey Sachs, has been the main instrument of rubles at the beginning of 1�92, is now worth more than U . S. economic warfare against Russia and the nations of the 1,000 rubles. former East bloc. An example of how this works is the case of aluminum. As head of the New York Fed, which has secretly run Before the Berlin Wall fell, the Soviet Union exported an Citicorp for the last two and one-half years, Corrigan was average of 250,000 metric tons of aluminum each year.This responsible for Citicorp's funding of Soros and his Quantum year, the members of the Community of Independent States Fund, for which Citicorp is a custodian. Not only did Citicorp (CIS) are expected to export 1.2 million tons, some 8% of fund Soros, but it also participated with him in speculation western production. As a resu�t, the price of aluminum ingot against European currencies last September. on the London Metal Exchante has dropped from a peak of Corrigan's move demonstrates the utter corruption of $1.65 a pound in June 1988, to around 53¢ a pound today, U.S. financial and economic policy. Here you have a quasi­ the lowest price for primary aluminum ever recorded. That public official joining a private operation fronting for eco­ means that virtually all of the; world's major aluminum pro­ nomic warfare to destroy the economies of Russia, Europe, ducers are losing money. Tqe aluminum industry needs a and the United States. Having devalued the British pound and minimum of 80¢ per pound to cover full costs and invest in the Italian lira, Soros has now publicly stated his intention to new capacity. sink the German mark. The London Metal Exchange aluminum stocks are at a Corrigan is not the only Fed official involved, either. Feder­ record of nearly 2 million tonS, and there is also a substantial al Reserve Governor Wayne Angell has been working on East supply of off-grade aluminum sitting in westernwarehouses. bloc economic "reform" forseveral years, as has Citicorp Vice The situation is similar fori nickel , where prices are at six­ Chairman H. Onno Ruding, a recentmember of the New York year lows and falling. Prices have fallen to $2.23 a pound, Fed's International Capital Markets Committee. and AME Mineral Economics, expects the price to fall as low as $2. 18 a pound. Nickel sold at $6 a pound in 1989. At Looting eastern Europe the current price, many of the world's nickel producers are The corruption involves not only currency manipulation, already losing money. New nickel imports from the CIS but also the related manuiplation of raw materials prices. accounted for 18% of world production in 1991 and 1992, Western operators are buying large quantities of cheap Rus- while primary nickel production in the West will fall by

4 Economics EIR July 30, 1993 30,000 tons from the 595,000 tons produced in 1992, ac­ When the Argentine branch of Citibank sold its shares in cording to Billiton-Enthoven Metals, a unit of Royal Dutch­ Citicorp Equity Investments (CEI) last year, Soros bought Shell. 2% of the shares through his investment funds . It is through As a result of these depressed prices, major metals pro­ CEI that Soros has moved into the purchase of privatized ducers are cutting production, shutting down plants, and lay­ state companies. ing off employees. Inco Ltd., the Toronto-based nickel pro­ CEI has already been involved i� several privatizations ducer, is cutting production by 40 million tons this year, in Argentina, including of such important companies as Altos to 380 million tons. Aluminum Company of America, the Homos Zapla (owned by the Army), the state-run telephone Pittsburgh-based aluminum producer, announced June 28 company, two large gas firms, and mlmy others. Soros him­ that it would cut its U.S. production by 268,000 tons (nearly self bought up 1 million shares in YPF, and CEI purchased 25%) and lay off 750 people in five states. The Alcoa cuts another 3 million. are the biggest by any major producer since 1991, when the H. Onno Ruding, the Citicorp vice chairman in charge of increased CIS shipments began. Canada's Alcan is threaten­ the bank's derivatives dealings, also has close ties to Soros. ing to close its Lynemouth, England smelter, and has closed Ruding, the former Dutch finance minister and chairman of its Aratu smelter in Brazil. the International Monetary Fund's Interim Committee, spent much of 1990 working with former Federal Reserve Chair­ Rich crooks man Paul Volcker, George Soros, and Jeffrey Sachs on the Coordinated by the highest levels of Anglo-American restructuring of the Polish, Hungarian, and Czech econo­ finance, these economic warfare operations are being run mies. Ruding and Soros met with Polish Prime Minister Les­ through the networks of carpetbaggers like George Soros and zek Balcerowicz on this issue. Marc Rich, both of whom have strong links to the Rothschild In his book Underwriting Democracy, Soros claims that interests. he and Sachs instituted International Monetary Fund (IMF) Rich, who fled the United States to Switzerland to avoid "shock therapy" in Poland with the help of Balcerowicz. charges of income tax evasion, began trading with Russia in the 1980s and today is one ofthe largest traders , with an Funny money estimated $1.2 billion in deals in that country . In 1991, Rich Meanwhile, the derivatives markets are providing huge bought 500,000 tons of Russian aluminum-more than half profits for the banks. Citicorp reported $572 million in in­ of its total exports-and dumped them on the western mar­ come from trading in financial markets for the second quar­ kets, dropping the price on the London Metal Exchange by ter, compared to $314 million one year earlier. That broke half. That action triggered strikes in the United States by the the quarterly record for U.S. bank trading income set just AFL-CIO, which demanded his extradition from Swit­ one week earlier by J.P. Morgan, with $520 million. Chemi­ zerland. cal Bank also reported a sharp rise in trading income, which Soros is owned by two groups, most immediately by accounted for $298 million of its $381 million in profits. Jacob Rothschild and his cousin Sir James Goldsmith, and "Citicorp and Chemical had huge!trading results, virtual­ also by the Federal Reserve Bank of New York. Alfred Hart­ ly the only source of real revenue strength among money mann of the Zug, Switzerland-based Rothschild Continua­ center banks," the Wall Street Journal observed on July 21. tion, the holding company for N.M. Rothschild of London, Morgan had a trading income of $989 million for the first is the business partner who connects Soros to Rich. six months, compared to a trading income of $959 million for all of 1992. The bank reported a net profitof $43 1 million Citicorp, again for the second quarter, and a first-half income of $726 Citicorp , which serves as a custodian for Soros's Quan­ million. tum Fund and has provided him with lines of credit during his The "results in the second quarter, like the first, were currency speculation, as well as joining him in his speculative exceptional," said Morgan chairman Dennis Weatherstone. raids, is also involved with him in Argentina, where Soros "Trading performance stood out, with substantial gains in has been making investments through Citicorp Equity Invest­ trading of debt instruments and strong results in swaps and ments. other derivative instruments." Soros began his operations in the country in 1990, and Weatherstone led a recent study of derivatives by the in 1991 bought up part of the IRSA real estate investment Group of 30 financial institutions, which argued against fur­ company. Since then, IRSA has specialized in buying up ther regulatory oversight, and insisted that the derivatives undervalued properties, remodeling them, and selling them players should be allowed to police themselves. But Morgan for a bundle. Baring Securities, a subsidiary of Baring Broth­ has the regulatory bases covered, too. Former Morgan man­ ers, arranged for IRSA shares to be sold on foreign stock aging director Douglas Harris, a derivatives specialist, has markets, and placed 13 million among its own clients, includ­ been appointed senior policy adviserto the U. S. Comptroller ing Merrill Lynch, Arnold and S. Bleichroder, and others. of the Currency, which regulates national banks.

July 30, 1993 EIR Economics 5 "perception" that the mark is weaker than in "reality," so as to cause a stampede against the German currency. This is a new name for an old con man's trick. Nils Taube, supervisory director and chief executive of­ ficerof Lord Jacob Rothschild's St. James Place, told EIR in Soros out to devalue a July 7 interview that since Soros's June 9 statement on the German mark, there has been a significant percentage drop mark, attackU.S. in the value of the mark to the dollar. Actually, Soros began to speculate against the mark before this statement, when the by Scott Thompson mark was 1.58 to the dollar. However, Taube complained that the rate of devaluation of the mark to the dollar has been slowing. Taube said that "Golem" George Soros. is still running amok, seeking to one week after Soros's announcement, on June 16, the rate devalue Germany's deutschemark , then blow out the U.S. had fallen to 1.69 to the dollar. But, in the ensuing period banking system. In the first phase of his operation, on June from June 16 until July 7, the mark had-oniy dropped to 1.70. 9, Soros, who had already started a run on the mark, wrote Still, Taube said that Soros is convinced that the dollar will Times of London economics editor Anatole Kaletsky, calling strengthen relative to the marl<: over the long haul. And, it for a fu ll-scale assault on Germany's currency, as well de­ appeared on July 20, when the rate stood at 1.71, that the manding that Bundesbank (German central bank) interest rate of devaluation might be starting to pick up again; there rates be lowered. Soros said that given the weakness of the had been an 8.7% devaluation relative to the dollar since German economy, the mark was grossly overvalued relative Soros began speculating at a 1,58 rate. to the dollar. Busting the banks I In speaking to top bankers for the British-centered Roth­ U.S. schild family, who dominate the board of Soros's flagship, Taube admitted that Soroslis short-selling U.S. Treasury offshore Quantum Fund NV, EIR corroborated the second bonds and hoping that intere!!t rates will rise, although he phase of Soros's plan. He is short-selling U.S. Treasury protested that "George Soros cannot manipulate the bond bonds, ostensibly to raise interest rates and thereby strength­ market," as it is "zillions of dollars daily." Soros appears to en the dollar relative to the mark. But, the reality is, as be bucking the policy of the Clinton administration-for a Soros's partners admit, that this process of raising interest weak dollar and ever lower interest rates-which seeks to rates will "bust the major U . S. banks." exportthe $300-400 trillion annual derivatives market. Soros Jeremy Smouhar, an employee ofGlobal Asset Manage­ seems to hold to the monetar$t belief that since rates have ment (GAM), whose chairman, Gilbert de Bretton, had been reached bottom, they have nowhere to go but up. While in a 25-year employee of the Rothschild family, told EIR that the short term, high U.S. inten:st rates would strengthen the Germany may have to be put through a year of austerity dollar relative to the mark, thi!! policy would also threaten to before a full-scale assault on the mark succeeds. GAM is pop the derivatives bubble. partly owned by Lord Jacob Rothschild's St. James Place, Initially, Taube protested that major troubled banks like which is represented on the board of Soros' Quantum Fund Citicorp/Citibank can withstand higher interestrat es, having by Nils O. Taube. recovered through profits earned by participation in Soros's "Soros has punctured the belief that the mark cannot be speculative devaluations of the pound, lira, mark, and so gone after," Smouhar told EIR . He has made it clear that forth . However, Taube admitted: "IfSoros'spolicy ofhigher there are other European currencies that are stronger.. .. interest rates prevails, then all the major U.S. banks like Soros made the Germans and the world sit up to realize that Citicorp will go bust in the foreseeable future. It is inevi­ Germany is not in the best shape. We do not project a full­ table." scale attack on the mark now, but the mark is already near Amidst massive corruption, like the insider trading infor­ the floorof the European Rate Mechanism. Thereare serious mation Soros and Citibank got from operatives of outgoing questions being raised whether the French franc, as opposed New York Federal Reserve chairman Gerald Corrigan on to the mark, should not become the anchor of the ERM. In a central bank moves to defend their currency, "Golem" Soros year, after Germany has lowered wages, reduced expecta­ is following a plan that will destroy what little remains of the tions, and picked itself off the floor,then we shall see whether world's economy. First, he is seeking to devalue the mark Soros, in combination with other financial interests, will and the German economy, which he hates, as the British do. force a major devaluation of the mark." Second, he is taking steps that his own board members admit Smouhar said that Soros' s statements about the weakness will bust U.S. banks, possibl}l exploding the $300-400 tril­ of the German economy showed how Sorosused his "theory lion derivatives bubble in the largest financial bust in world of reflexivity"in financialwarfare . Soros is manipulating the history .

6 Economics EIR July 30, 1993 Behind China's economic chaos lies boundless corruption by Cho Wen-pin

By now , even the communist government of China can't tor. Excessive money supply is fueling inflation, which feeds deny that the country is facing an enormous economic crisis. back to create a demand for even more money supply, drain­ The buzzword used to be "overheating," which polarized ing the local banks. All three government mints have been the supposedly authoritative opinions on China's economic operating full throttle, overdosing the country with 28% more disease. But, according to the July 4 issue of China Times paper bills than were available last year. Up through May, weekly, the State Bureau of Statistics recently reported that China issued 150 billion more yuan ($27 billion) than the China's "economic crisis is worse than just overheating." previous year. The report reveals that among China's many problems, Much of the money from local governmentgoes into pump­ agriculture remains at the top of the list. Next in severity ing up the real estate bubbles in some 6,000 "special economic comes the infrastructure bottleneck (that is, if the bottle still zones." In Shanghai, it is estimated that real estate siphoned off holds water), followed by an excessive money supply, a real $2 billion in foreign investment, much of which may actually estate bubble, and stock speculation. What it did not report, come indirectly from Chinese financial resources. As for the of course, is the corruption among China's privileged power funds invested into export-oriented assembly lines, capital is clique, corruption which goes far beyond the crisis people often wasted in redundantefforts to produce the same types of normally perceive. consumer goods. Interested in tax benefit policiesfrom Beijing, these investors have to competefirst wilth the realestate contrac­ From farmers to finances tors for building materials; then, once they have completed China's peasants account for 80% of the population in cons ction and have emptied their b accounts, they again � . � the mainland, or 20% of the entire world's population. But face pnce wars over raw matenals. : investment in the countryside has remained essentially mori­ Corruptgovernment offi cials, alqng with thugs from out­ bund during the past decades. As a result, agricultural house­ side the mainland, are fishing in t�ese troubled waters of hold income has increased only 6% each year, less than the "financial reform."This has alreadyisunk the former gover­ nationwide inflation rate, which is predicted to be at 10% this nor of the central bank, and has cast � cloud over Premier Li year. In mid-July, the China Daily reported on a recent sur­ Peng around a recent bond scandal tnvolving over 1 billion vey showing that 80% of the young peasants in Henan prov­ yuan (about $180 million) and 10<),000 victims. Another ince want to give up farming and migrate to other areas. huge black hole that drains governmtnt capital and the blood But there are no jobs waiting for them anywhere. "Some of cheap labor, is the ever-accumulating offshore balances. researchers say that the migrants could become a social prob­ lem," commented the paper-a gross understatement. And Beijing's money-laundering scheme when the peasants are subjected to social injustice, theirpolit­ One furious Chinese intellectual, reporting in the over­ ical consciousness and indignation can rise to levels far be­ seas Chinese newspaper World Journal July 7 on his recent yond what the communist regime would like to see. visit back home, summarized four major problems that The transportation crisis, caused by lack of basic infra­ shocked him. Besides moral degenerationand the calamitous structure , is another never-ending headache for Beijing. state of education, he mentioned the expanding power of From January through May of this year, China's railway Chinese managers of joint ventures or chiefs of state-owned department transported 63 1 million tons (mt) of goods- group enterprises, who are either t� next generation of the 14.37 mt less than proposed for the period, and 1.48 mt less Communist Party founding members or governmentbureau­ than the level for the same period last year. About 9.6 mt of crats on leave. He saw such people spending $100 for admis­ much-needed coal was not transported, but was leftsitting at sion to enter an exclusive bar in Beijing; tipping an escort railway stations flooded by a passenger overflow of 25 mil­ girl with $200 in Guangzhou; or Pliying $16,500 to join a lion migrating people. nightclub in Shanghai, where a bottle of cognac may have a The third symptom of China's economic crisis, as even $1,000 price tag; while some starving peasants in remote the government now openly admits, lies in the financial sec- areas live on an annual income of as little as $40 .

July 30, 1993 Economics 7 EIR On July 4, the Sunday Morning Post of Hong Kong re­ from the foreign exchange administration and Chinese cus­ ported that Larry Yung, chairman of China International toms. When a company trades with Hong Kong partners, it Trust and Investment Corp. (CITIC), has spent at least $7.5 claims in China far less than the true value of its exports, and million to purchase the family home of the late British Prime then gets kickbacks from its agents in the form of direct Minister Harold Macmillan. The new owner of this 14-bed­ deposits, stocks, or bonds. The inverse form of the same room country house in east Sussex, is the son of Chinese trick is to over-declare on imported goods in order to earn Vice President Rong Yiren-the famed "red capitalist." commissions from Hong Kong, Taiwan, or Japan. But where does this kind of capital come from? Co-au­ To determine the size of the "window" created by "mis­ thors Shang Hai and Wan Runnan tried to solve the puzzle in invoiced" import-export deals, one can evaluate trade bal­ their report in the June 30 issue of China Focus, a monthly ances between China and its major trading partners. For in­ newsletter published by the Princeton China Initiative. They stance, China has publicly denied the $18 billion trade deficit firstexamined the striking but often ignored question of why which the United States claimed to have with China in 1992: China's yuan has depreciated 50% against U . S. dollar, while Research by a French investment bank shows that Chinese Beijing's official statistics claim that the total foreign capital had under-declared at least $10 billion in its trade with the invested in China from the beginning of 1992 through the United States. Much of this discrepancy was "captured" in second quarter of 1993 has exceeded the total amount for the Hong Kong. The Far Eastern Economic Review on July 15 previous 12 years combined. Their investigation revealed quoted another source from Lehigh University in Pennsylva­ that over the last few years, Hong Kong has become the "the nia which estimated this capital flight at $15-25 billion in Switzerland of China's privileged clique-i.e., a money­ 1990 , $13-28 billion in 1991. while in 1992 it rose still laundering center," and a springboard of China's capital further, at an accelerating rate of 23%-more than the boast­ flight. Shang and Wan reported how mainland capital first ed growth rate of China's Gross Domestic Product. And this lands in Hong Kong , and then magically gets back into the leakage figure would be much larger if China's "invisible" hands of Chinese empowered via various routes. military trade were also included. It works as follows: First, the value of export goods from Next, Chinese parent companies take this opportunityof the mainland is under-declared in order to evade controls privatization to obtain money from the state treasuries, and

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8 Economics July 30, 1993 EIR inject the capital into their Hong Kong subsidiaries at far below market prices. A large chunk of the difference be­ Currency Rat comes stock or deposits of the Chinese managers in their es· phony Hong Kong fronts. Finally, part of the capital becomesre-invested back into The dollar in deutschemarks joint ventures on the mainland, thus giving them a tax-free New York late afternoonfixIng ride. The scheme reduces not only genuine foreign invest­ 1.70 -- ment in the mainland, but also government revenues. Or, --- f going beyond that, Hong Kong companies engineer deals to ././' 1.60 I- tum over ownership rights, and become the holding compa­ nies of mainland enterprises. This puts the managers of main­ 1.50 land companies on the boards of directors of both sides­ with top job security, since, as long as the reform policy 1.40 remains, no one is able to fire these communistbureaucrats . This explains why the newly rich, corrupt communists 1.30 6/9 6116 6130 7114 7121 are so zealous about joint ventures and privatization. It may 6/23 be a true tale that in 1989 George Soros was accused of The dollar in yen being CIA-connected and was kicked out of Beijing after New York late afternoonfixing the Tiananmen Square massacre; but now China has lured swindlers from Hong Kong-so-called "overseas Chinese 1140 patriots"-to skim and share the best part of the pie. 130 'Malmarmaoism' can't save China "Farmers may rebel!" This possibility has the Chinese 120 Communist Party quaking in its boots, and they have issued 110 a 36-point policy to try to ease tensions in the countryside. - , Many peasants live no better than their exploited -- ,/ � grandpar­ 100 ents did in the 1930s, and the enraged laborers , whom Mao 6/9 6116 7114 7121 led against the Nationalists, may become the major force for 6/23 The British pound in dollars; creating the potential to overthrow a regime which has al­ I ready fooled them once before. New York late afternoonflxlng To counter this, Beijing is attempting to restore the sys­ 1.70 tem of militia among the workers and peasants on the one hand, and on the other hand claims it is combatting corruption i 1.60 and decadence among ranking party leaders-a move to stop - those who trade in power now, but to allow their underlings 1.50 "' ...... - to come into power later. "'"V -- With the worship of money emerging as China's new 1.40 religion-based on the same corrupt image of man as that of the communists-China is doomed, whether it sticks with the 1.30 6/9 6116 6130 7114 7121 communists or turns to the monetarists. The only difference 6/23 between Mao Zedong and Deng Xiaoping, is that Mao The dollar in Swiss francs claimed that "power comes from the barrel of a gun ," whereas New York late afternoonflxlng Deng now believes that power can also come from a pile of cash. Deng's regime makes deals with "red capitalists" and 1.60 calls it a "socialist market economy" with Chinese character­ istics-his unique modem blend of "malmarmaoism" (a mix­ 1.50 - -.... ture of Malthus, Marx, and Mao )--equivalent to the ancient .. 1"01""10...... / Taoist legalism that ended many Chinese dynasties dis­ 1.40 � gracefully in past centuries. 1.30 The drama of Chinese history of today is digging a gigan­ tic grave forcomm unism-but it could end in a terrible trage­ , 1.20 dy , sacrificingmillions of lives, unless the Confucian "way 6/9 6116 7114 7111 of commonwealth," in the tradition of Sun Yat-sen, prevails. 6/23 6I3t

July 30, 1993 EIR Economics 9 Report from Bonn By Rainer Apel

German fertilizers for African farmers man television J ul y 19, be repeated in The urgent need to fight worldwide famines is addressed in "hunger strikes in virtually hundreds of other eastern companies that are Thuringian potash miners strike. awaiting the same fate." From t�e start of the struggle of east German potash miners against With the speech Helga Zepp­ Although many reporters attended having their jobs eliminated under the LaRouche, chairwoman of the Ger­ the rally, neither the speech nor the regime of. "rapid privatization" in man Civil Rights Movement Soldarity essential demands of the hunger-strik­ spring 199 they have drawn the con­ I, (B BS), gave to a public rally of sever­ ing miners have been reported by me­ nection between the production of al hundred protesters in the Thuringi­ dia since that strike began in early potash as a ley component of fertilizer an town of Bischofferode July 17, the July. and its undersupply in nations of the weeks-long strike of 700 potash min­ It is well understood in the Ger­ developing! sector. The slogan "Ger­ ers against the foreclosure of their man establishment that this strike is man Potash Against World Hunger, Thomas Muentzer mine entered a new different from previous labor protests , Secure Jobs for Us Here" has played a stage . and that it occurs in a much broader prominent tole in miners' mobiliza­ Zepp-LaRouche's address was in social context. The political establish­ tions, and :two years ago was still support of the 42 miners and wives ment, including the labor union bu­ openly supported by the mine workers who had been on a hunger strike for reaucracy, fears that the Bischoffer­ union. almost three weeks. The speech intro­ ode protest will become "a turning German potash mining managers duced a highly explosive aspect, when point in the social history of post-uni­ are now joiming,the propaganda of the she linked the political thrust of that fication Germany," as numerous in­ cartels about an alleged "30% overca­ strike , which opposes the deindustri­ fluential dailies such as Die Welt and pacity in global production." alization policy of the free market-ori­ the Franlifurter Allgemeine Zeitung Yet only two years ago, on May ented Berlin Treuhand agency and its warned in editorials published after 28, 1991, OttoW al terspiel of the Kas­ backers in the banking sector and the July 17. sel Potash Company said: "The world government, to the efforts of two The press wrote that this strike set needs potash to have food for a grow­ prominent Germans who wanted a re­ a new model for labor protests, nota­ ing population ," at the World Potash turn to a pro-industrial approach but bly in eastern Germany, where 900 Conference in Hamburg. He attacked paid with their lives for it: Deutsche companies still under the control of an absurd situation in which, although Bank chairman Alfred Herrhausen the Treuhand agency are slated for there are sufficientresources and pro­ (killed by a bomb in 1989) and former foreclosure because they cannot be duction capacities, "the European Treuhand agency chairman Detlev privatized under prevailing free mar­ Community is reducing its food pro­ Rohwedder (shot dead in 1991). ket conditions. This poses the threat of duction, sales are also down in eastern The ideas these two stood for must another 800,000 layoffs in the former Europe, and the developing countries be seen in the broader context of a state-run east German industry, which have no money to buy potash, an irre­ worldwide struggle against the crimes has already had to lay off 60% of the placeable plant fertilizer." of the free market ideologues, and are work force it had before unification. "Providing food to a growing continued in the struggle of the potash The Bischofferode miners did not world popUlation can only be guaran­ workers today , she stated, to the ap­ back down in the face of the usual teed by a stable potash-producing in­ plause of the audience (with the ex­ empty promises made to them by dustry," he !laid, calling for state inter­ ception of a few leftistheckler s). She bankers, phony investors , the Treu­ vention. The potash miners in declared that German potash could hand agency, and the government,but Bischofferode have campaigned for help to fightfamines in the developing decided to continue their action until just that, a 'state-funded program to nations. they had a written guarantee of jobs. save the mines from foreclosure, with The favorable response of most of Thus, they set a new standard of labor the aim of using the potash for the the workers shows the moral commit­ determination that may, as Regine production of fertilizer, which then ment behind this strike, which was Hildebrandt, the labor minister of would be sllipped to underdeveloped launched against the explicit "no" of Brandenburg (one of the five eastern countries to· help them build up their the mine workers union. German states), said on national Ger- own food production capabilities.

July 30, 1993 10 Economics EIR Andean Report by Peter Rush

Colombia oil find sparks policy brawl date Ernesto Samper Pisano, who is The IMF wants the revenues to go toward paying the debt, while rumored to favor Perry for finance minister should he win election next some are arguing/or a development program. year, and who doesn't rule out in­ vesting in infrastructure, just making it the last priority, Another proposal in this vein is the Since 1982, many nations of Ibero­ country's foreign debt, even before it call of Colombian Central Bank board America have been subjected to a de­ comes due. No recent debate has high­ member Roberto Junguito Bonnet to cade of virtual foreign rule over their lighted so clearly that the aim of the simply leave the oil in the ground, and economies, in the form of austerity IMF and its sycophants is not fighting dribble it out so slowly it won't do policies dictated by the International inflation or government deficits, but anyone any good. Monetary Fund (IMF) to compliant stopping development. On the other side of the debate are Presidents and their administrations, The line of those opposing invest­ several members of the cabinet and which have wrecked the economies ment is simple: Governmentexpendi­ other nationalists, Foreign Trade Min­ of Venezuela, Argentina, Mexico, tures are inflationary, by definition, ister Juan Manuel Santos urged in a Peru , Bolivia, and most of Central and with inflation comes devaluation July 9 article in El Tiempo that the America and the Caribbean. Above of the peso, which will hurt ev­ funds be invested in infrastructure, all, virtually every country in the con­ erybody. technology, and human capital. He tinent has been forced to decimate its The argument is bogus, as pointed debunked the notion that such invest­ expenditures for infrastructure (wa­ out by La Prensa columnist Oscar Go­ ments would automatically be infla­ ter, transportation, communications, doy, who in an early July article re­ tionary, saying that with careful man­ and power production and transmis­ viewed the development experience agement of fi�cal and monetary sion projects), all to supposedly of Indonesia, which, with much more policy, that could be avoided. He was "combat inflation." oil, managed to invest in development backed up by the National Planning Thus, when Colombia, which is over a 20-year period without causing Department, which released studies it in need of billions of dollars just to inflation or other unwanted side ef­ had done recommending that the oil modernize its road system, and which fects on the economy. Constructing money be reinvested in the oil sector went through a year of disastrous needed infrastructure is actually anti­ and in public infrastructure. power shortages last year for failure inflationary because productivity is Industrialist Fabio Echeverry to adequately invest in electricitygen­ vastly increased while productive jobs Mejia, former head of the Colombian eration, found itself early this year are created to build and operate the Industrialists' Association, wrote in a facing the prospect of an extra several new installations, putting more earn­ July 7 article that paying the foreign billion dollars a year in government ing power into the economy and stim­ debt with this money would be "a revenues from its new Cusiana oil ulating industry to expand. grave error." He urged investing in field in the Amazon, which has just Perhaps the most amazing propos­ the "social arena-health, education, gone commercial, one might have ex­ al came from Guillermo Perry, a re­ infrastructure-with particularempha­ pected strong national support for in­ searcher for a think-tank called the sis on the worst-off sectors of the pop­ vesting in the needed infrastructure Foundation for Higher Education and ulation. " and related programs. Development and a former cabinet The most elaborated proposals for While many voices were so member, who argued in an article on what to do with the funds are from the raised, there is now a heated debate July 9 that all the extra revenue from Ibero-American Solidarity Move­ over what to do with the oil revenues, the sale of the oil from the Cusiana ment, associated with Lyndon with the faction that favors IMF aus­ region should be deposited in a special LaRouche. Threeyears ago the move­ terity policies for Colombia arguing fund outside Colombia, basically to ment put out � program proposing strenuously that under no conditions lie there unused for the indefinite fu­ large-scale infrastructure projects, should this money be invested in infra­ ture. His idea is that the best way to from roads and railroads to power, structure or any other useful purpose. avoid inflation is to just not spend the water control, attd irrigation projects, Many are arguing that the oil money money! Perry's political godfather is and a new lrans-isthmian canal would be best used for paying offthe Liberal Party presidential pre-candi- through northwest Colombia.

EIR July 30, 1993 Economics 11 Business Briefs

Petroleum expenses will flow into the struggle against introduced at exactly the same time as the Pol­ AIDS by the year 2000. ish one in January 1990. I remember visiting u.s. oil production The report gives a devastating picture of Yugoslavia in April or May 1990and the situa­ falls as imports climb the rise of AIDS infections among black youth tion looked much better than in Poland." But, (predominantly young females), the depopu­ said Soros, Siobodan Milosevic felt threat­ lation of entire regions, and the dramatic in­ ened, stole the money from theNational Bank The American Petroleum Institute (API) is­ crease of AIDS cases among newborn of Serbia, andused it to get elected by promot­ sued its biannual report on July 14 on U. S. oil children. ing "GreaterSerbia ." production, import, and consumption statis­ Half of the world's recorded AIDS-infect­ tics for the first half of this year. The report ed cases are Africans, especially in countries shows that both domestic productionand con­ that are faced with grave economic problems, sumption continue to fall, while imports con­ politicalunr est, and civil war, the report says. tinue to rise. Production is now at a 35-year Asia low, consumption is lower than in 1977, and Three nations to map imports have increased 9.2% froma year ago. The API report was presented by Edward out development plans H. Murphy, the institute's director of finance, i The Balkans accounting, and statistics. Murphy said that A northern, growth "triangle" plan is being domestic crude oil output had fallen to 6.9 mil­ pushed by senior economic officials and aca­ lion barrels a day, a 5.5% drop from a year Soros-Sachs 'reform demics frOIp Indonesia, Malaysia, and Thai­ ago, with the biggest drop recorded on Alas­ program' caused war land, the AustralianFinancial Review report­ ka's North Slope. North Slopeproduction fell ed in early July. The idea for the project, 8.5% from last year's levels. He attributed the In early 1990, a "Yugoslav reform program" encompassingnorthern Sumatra in Indonesia, falling production to lagging prices and re­ drafted by Prof. Jeffrey Sachs from Harvard the four northwestern states of Malaysia, and stricted new drilling, according to theHouston and approved by the International Monetary southern i ailand, apparently emerged three Chronicle. n Fund, in the name of the Markovich govern­ years ago. The Chronicle quotes Murphy: "Last year ment, and involving speculative financier Official� plan to meet in July to an at this time, spotWest Texas Intermediate was draft George Soros, led to the dissolution of Yugo­ agenda, pitapoint cooperative projects, and $2 1 a barrel. Now it's around $18. Ask any­ slavia and theongoing war in the Balkans, the provide terms of reference for a feasibility body last year what they thought prices were secretaryof economics ofthe formerYugoslav study by the Asian Development Bankwithin going to be in July of this year, and they'd tell government in Belgrade told a journalist in eight montl).s. "The necessary leg-work has you it was going to be $21 to $22-and they July. beendone, �d the approaches to various gov­ expected stronger demand. . . . Elements of the Yugoslav "shock therapy" ernment offlcials have been completed," said "It's very much a self-inflicted wound. It program were even more draconian than the Ismail Muh�ed Saleh, deputy directorgener­ wouldn't be falling like this if we were allowed similar program imposed on Poland. When al ofthe Ku�aLumpur-based lnstitute ofStra­ to drill where the oil is," he said, in reference asked if the Yugoslav economy had begunto tegic and International Studies. to protected areas offshore and in Alaska. collapse under this Soros-Sachs "reform," as was happening in Poland, the official said: "This was the problem with Yugoslavia, which fueleddissolution and war, becauseof Demographics the decline in the economy. There had been I Health zeroor negative growth since the early 1980s Russia faces disaster, . . . but with the reform program, there was AIDS will absorb most of an even greater drop that was followed by the warns parliament paper breakup of the country, disruptions, and col­ budget, says South Mrica lapse." Rossiskaya(Jazeta, the publication of the Rus­ Inhis Nov. 18, 1992 speechto the Harvard sian Parliament, wamed in mid-July that Rus­ 1 The AIDS problemwill absorb most of the fu­ Club of New York entitled "Nationalist Dicta­ sia is facing a demographic disaster. The fig­ ture public health budgets of the Republic of torships versus OpenSociety ," Soros admitted ures were more stark than those previously South Africa, a new reportby the state medical promoting a Yugoslav reform program, but published, giving rise to accusations that they denied blame for the subsequent genocide: researchcouncil released in early July reveals. are exaggerated. However, the general trend The report wams that 75% ofthe state medical "The Yugoslav economic reformprogram was is unquestionably accurate.

Economics July 30, 1993 12 EIR GERMANY'S • electronics sector will eliminate 50,000jo bs this year, industry spoktsmen announced in Last year, 200,000 more people died in trucks,tractors , and aeronautic equipment are Frankfurt on July 13. Apart from a Russia than were born, the paperreported. In producing material that is not being bought. drop in consumer products, the crisis Moscow and St. Petersburg , deaths outnum­ Officially, unemployment is 2.6 million, but in the aerospa�e and power-generat­ beredbirths by almost two to one. Thereis also "nobody has any illusions: The number of ing sectors an4 in the automobile in­ mass migration from the countryside. In the those without work can only grow in the next dustry was cited as the main reason past 10 years, over 3 million Russians have years, tothe rhythmof the closures of factories for the decrease. left the villages for the cities, leaving 51,000 and plans of restructuring . Planning chief Jer­ villages empty. About 40% of marriages end zy Kropiwnicki speaks of 3.5 million unem­ MORGAN Futures, Inc . in divorce and nearly one in five women of ployed by the end of next year. Concerned • J.P. was fined $12:; ,000 by the Chicago childbearing agehave an abortionin any given about the rise of unemployment, the popula­ Board of Trade for a series of viola­ year,because no other form of birth controlis tion also sees its resources collapse from year tions, UPI reported July 16. The available. The numberof suicides rose 15% in to year .. ..Between 1989 and 1992, salaries company is ac�used of failing to have 1992. have gone down 26.6% in real terms;this year, contract-grade Treasury notes at its they should go down a further 5%." bank in an acc::eptable form to meet delivery dates on five occasions.

INDIAN FARMERS • ransacked Poland Biological Holocaust and partially damaged the manufac­ turing factory; of the multinational ' Two-fifths of population Antibiotic-resistant Cargill Seeds Ltd. The Karnataka Rajya Ratha Sangha (KRSS) group is living in poverty bacteria emerges demanding a ban on the cartels in the seed sector and the maintenance of Some 39% of the Polish population is living New York City Health Department officials the status quo ).vithregard to the Indi­ below or very close to the poverty level, ac­ reportin the currentissue of the British medical an Patent Act of 1970. cording to a new reportreleased on July 12 by journalLancet, that there is widespread emer­ FRANCE'S the National Bureau of Statistics in Warsaw. gence of antibiotic-resistantcommon bacteria. • governmentis refus­ Families with many children, single mothers, Dr.Thomas Friedan and his colleagues report ing to increase allowances for fami­ and the aged are the most affected. The report that enterococci bacteria, which regularlylive lies, despite $ drastic drop in birth dealt with the year 1992. in the human intestines, are now resistant to rates, according to Quotidien de Par­ The dramatic collapse of living standards theantibiotic vancom ycin. This firstappeared is . One demqgrapher told the daily under the International Monetary Fund-im­ in New York City hospitals in 1989, but by that such an iricrease would "express posedregime of the past three years is charac­ 1991, there were 38 hospitals with cases of confidence in the future ." terized by the fact that 43% of all households drug-resistant enterococci bacteria. Of 100 YEMEN can securefood only if other expenses are cut people infected with the drug-resistant bacte­ • started a two-day aerial to a minimum or are not paid, such as rentand ria, 42 of them died, half from conditions di­ spraying campaign on July 14 to electricity-which 16% of all households are rectlyrelated to the new bacteria strain. combat invading swarms of locusts, already doing . Some 20% of families have to Conditions in New York City and many Reuters reported from Aden. Yemen borrow money to afford basic foods. Third World cities are ripe for disaster, the officials sayctops could be destroyed The fact that 20% of all low-income house­ Lancet piece said, according to the July 13 by tens of minions of locusts carried holds do not have a supply of fresh water, and London Times. The combination of high-tech by winds into the country from the 50% of these households have no warmwater, medicine sporadically administered in the Hornof Africll. has public healthofficials alarmed, as doesthe midst of total social and economic deprivation, THE CANADIAN fact that more and more children from low­ drug abuse, and AIDS, is deadly. • commercial income families are suffering from the effects The discovery of antibiotics and the pre­ paper market : could face an agitated of long-term malnutrition. vention of deaths by infection was the single or collapsed market situation similar The French daily Liberation reported on most effective medical discovery in history; it to that whicb precipitated the col­ July 15 that the large majority of Poles abhor added 10 yearsto the average human lifespan, lapse of the Olympia and York world­ Jeffrey Sachs's "shock therapy" program. and therefore , the development of antibiotic­ wide real estllte giant, Moody's In­ Coal production is only 60%of what it was in resistant bacteria is extremely dangerous. vestors Services warned in a report 1980. Steel productionhas gone down by one­ Drug-resistant tuberculosis is the biggest issued July 14, UPI reported. half in four years. Factories manufacturing worry .

July 30, 1993 EIR Economics 13 · �TIillScience & Technology

Environmentalists gearu p anti-pesticide hoax: The moststrin gent state suroeys show pesticide residuesJar below EPA standards, which themselves are setJa r abov� the hazardous level. Why the scare then? Dr. ThomasH. Jukes reports.

Thomas H. Jukes is professor of biophysics in the Depart­ 2) Dr. Bruce Ames of the University of California, mentof Integrative Biology at the Universityof Californiaat Berkeley, has pointed out tha� "Americans eat an estimated Berkeley. He was one of the fe atured authors in the June 19, 1 ,500 milligrams of natural �sticides per person per day, 1992 EIR Feature "Population Control Lobby Banned DDT which is about 10,000 times, more than they consume of to Kill More People." synthetic pesticide residues." The na�ural pesticides are pro­ duced by plants to protect themselves against pests. The On June 28, 1993, Children and Pesticide Residues in the natural pesticides, on the average, are no less toxic than the Diet, a report by a committee of the National Research Coun­ synthetic ones. Dr. Ames conc:1udedthat residues of synthet­ cil (NRC), was published together with a news release from ic pesticides in foods are a negligible hazard. the National Academy of Sciences, and an opening statement 3) In analyses of pesticides in foods, carried out in 20 by the chairman of the report committee, Dr. Philip J. Landri­ states, 1990-91, with 18,928 samples, no pesticides were gan' at a press conference in Washington, D.C. detected in 70.2% of the samples. In the 1990 program by The press conference was originally scheduled for June the Food and Drug Administtation (FDA), samples tested 29, but the date was moved up because an article by Marian were 6,602, no residues found; 58%, residues present but Burros on the report appeared prematurely in the New York within guidelines; 41%, in violation: 1 %. Times on June 27 . Burros was formerly a writer on food for The FDA has recently reviewed its six-year data from the Washington Post. food analyses, 1985-91, among which are 10,000 samples The news release and statement emphasized the vulnera­ of fresh apples, oranges, bananas, pears, milk, and fruit bility of children; indeed, Dr. Landrigan ended his statement juices. There were also baked goods, infant cereals, infant with the remarkable prediction that "by taking the special formulas, and combination dinners. Less than 0.5% of sam­ steps we have outlined in our report the federal government pled foods violated federally allowed limits. Raw foods tend­ could go a long way toward ensuring ...that America's ed to have the highest residues, but washing, peeling, and future is preserved." processing can reduce residues by as much as 99%. This was The release and statement omitted all previous evalua­ reported in the May-June 1993 Journal of Offi cial Analytical tions ofthe effect of pesticide residues in food. Some of these Chemists International. are as follows. California has published the results of its own program. 1) A National Cancer Institute spokesperson on Aug. 27, In 1988, there were 14,504 samples taken. More than 98.8% 1990 was "unaware of evidence that suggested that regulated of the 9,293 samples of more than 200 different commodities and approved pesticide residues in foods contribute to the toll were within the tolerance limit;s established by the Environ­ of cancer in the U. S . " mental Protection Agency (EPA). No residues were detected

14 Science Technology July 30, 1993 & EIR in 76. 1 %. Residues less than 50% of tolerance were detected pesticide residues are set by dividing the no-effect level by in 19.6%. Residues between 50% and 100% of tolerance 100, and "EPA then divides this numbleragain by 10 if studies were detected in 1.1%. Only 1.16% contained illegal pesti­ have shown effects on the developing fetus." cide residue s. Of these, 0.94% had residues of a pesticide Dr. Landrigan says, "We believe that EPA should consid­ not authorized for use on the commodity. Only 0.23% had er using an additional factor of up to 10 when there is evi­ residues that wereover the tolerance level. The small fraction dence of postnatal toxicity." This WOUld not be applicable to (1.16%) that contained "illegal residues" were not necessari­ samples with undetectable residues. ly hazardous because the tolerance level is set well below the 4) Perhaps most important of all, risk-benefit analyses level of actual hazard. have led public health authorities to the conclusion that the For the Produce Destined for Processing Program, sam­ health benefits, including possible c�ncer prevention, from ples are taken at or after harvest. Of the 997 samples of more fruits and vegetables, far outweigh any deleterious effects than 50 different commodities, only one sample contained of pesticide residues. This was emphasized in the case of an illegal residue. children, by the California Department of Public Health at The results of the 1990 program were presented in the the time of the Alar apple scare. Indeed, Dr. Landrigandoes following summary (Issues in Food Safety, May 1992, Cali­ not challenge the conclusion because be says "parents should fornia Department of Pesticide Regulation): continue to emphasize fruits and vegetables in their chil­ "California spends more than $4 1 million each year for dren's diet." So why does he call for new program? � 'the nation's most comprehensive program to regulate pesti­ During the week preceding the release of the report, Natu­ cide use. ' Results fromthe nation's largest state residue mon­ ral Resources Defense Council (NRIl>C)and Environmental itoring program, reported in 'Residues in Fresh Produce- Working Group (EWG) issued statements that children are at 1990,' again confirm that most fresh produce contains no risk from pesticides, and even revived the discredited claims detectable residues and that virtually all residues that are made against Alar. Other participants in this campaign in­ found are well below allowable levels, according to James cluded Consumers Union, Audubon $ociety, World Wildlife W. Wells, director of Cal EPA's Department of Pesticide Fund, and Mothers and Others for a Liveable Planet. The Clin­ Regulation (DPR). ton administration (EPA, FDA, and USDA) issued a joint ''The monitoring includes the marketplace surveil­ as program statement on the same day, June 25, the EWG, saying "We lance in which commodity samples are taken from program, expect to use the upcoming reports of the National Academy throughout the channels of trade--at ports and other points of of Sciences and the EWG on children landpesticides as a basis entry, packing sites, and wholesale and retail outlets. for formulating the legislation and �gulatory policies." "Of the 8,278 samples taken of 167 different commodi­ It is unusual for comments to be made prior to the release ties in the marketplace surveillance program, 8 out of 10 of the report. had no detectable residues. Only a fraction of 1 % (0.17%) contained residues over the allowable limits. Another 0.62% Comments had residues of a pesticide not authorized for use on the Some main points of the statement and press release, commodity. These detections, usually at low levels, are often together with my comments, are: the result from drift of a pesticide from its intended target, Statement: "The federal government's decision-making and do not necessarily indicate a 'safety problem' with the process for pesticides does not pay sufficient attention to the produce tested. protection of human health, especially the health of infants ''The report also highlighted results of the DPR' s Priority and children ....Childr en are not j1l1stlit tle adults." Pesticide Program, in which monitoring is concentrated on Comment: The decision-makingiprocess is based on the pesticides of special health interest. In this program only protection of human health. The safety margins are suffi­ those crops known to have been treated with a targeted pesti­ ciently wide to allow for protection of consumers of all ages. cide are tested. Because the crops are known to have been Statement: "We recommend that; the governmenthave as treated, DPRobtains the most accurate data on which to base its clear goal the setting of tolerances that more fully protect estimates of dietary exposure. human health." , "Of the 2,598 samples taken in this program, 92% had Comment: This goal has been met. Pesticide residues in no detectable residues,' said Wells. 'The Priority Pesticide foods do not endanger human heal th, as noted by National program is a key element of our food safety program and we Cancer Institute. feel these results clearly confirm what scientists have said for Statement: " ...by taking the S{1eCial steps we have out­ many years: The "problem" of pesticide residues in fresh lined . . . the federal governmentcould go a long way toward produce is more one of perception, than reality. ' " ensuring ...that America' s future is conserved. " In short, the surveys show that a significant problem does Comment: This somewhat pomtmus prediction may be not exist. compared with the actual dangers to/children. These include As Dr. Landrigan noted, the EPA tolerance limits for infectious diseases, nutritional deficiencies, parental neglect

July 30, 1993 Science Technology EIR & 15 and mistreatment, exposure to cigarette advertising, vio­ lence, and drugs. Conference Report The lack of immunization against childhood diseases is a major problem. This has been emphasized by the Centers for Disease Control, which estimate that vaccination of children is at a rate of only 60%. Immunization of many children is needed against whooping cough, measles, mumps, polio, u.s. health risk diphtheria, tetanus, rubella, and hemophilus influenza type B. The vaccines for all these diseases are available from testing is 'worthless' public clinics. However, access to them is limited, and the immunization rate for children below the age of is low, 2 by Mark Wilsey especially in the inner cities (only about 10%). Statement: "We believe that EPA should consider using an additional factor of up to 10 when there is evidence of The legal and heath issues arising from governmental regula­ postnatal toxicity." tions were the focus of a conference entitled "Hazardous to Comment: EPA uses this additional factor if studies have Your Health: Toxics, Torts, and Environmental Bureaucra­ shown an effecton the developing fetus (Le., prenatal toxici­ cy," hosted June 8-9 in Washington, D.C. by the Indepen­ ty). This precaution would appear to be sufficient to protect dent Institute. The conference highlighted government poli­ against postnatal toxicity. cies that the participants contend are "seriously flawedboth economically and environmentally," which have helped cre­ Summary ate a situation in which an explosion of litigation threatens 1) Analyses of foods show that in most cases pesticide to cripple the "competitiveness of American business and residues were not detected, and in nearly all other cases, the labor." Topics ranged from Superfund cleanup to risk and residues were within tolerance limits. These findings show liability. that the problem is a very minor one, regardless of other Aaron Wildavsky, Profes�or of Political Science and circumstances. Public Policy at the University of California at Berkeley, A National Cancer Institute spokesperson on Aug. 27 , spoke before the conference on a panel on hazardous sub­ 2) 1990, states he was "unaware of evidence that suggested that stances. He has written numerous books and papers on the regulated and approved pesticide residues in foods contribute subject. In his talk, Wildavsky described the nature and mag­ to the toll of human cancer in the U. S. " nitude of the problem as it pertainsto the use of animal cancer The National Center for Health Statistics states that age­ tests in determining human cancer risks. He said that due to adjusted cancer mortality rates among white children ages 0 the faulty methodology of animal cancer"tests, the results to 14 years have decreased by 35% between 1973-74 and will never be good enough to be considered a valid basis for 1985-86. predicting human cancer. The simple fact is that humans will 3) Various public health authorities agree that protection rarely, if ever, encounter the same high dosage of suspected against cancer by fruits and vegetables outweighs any effect carcinogens that are given to laboratoryanimal s. of pesticide residues. 4) Pesticides kill pests. Plant protectant chemicals Ludicrous extrapolations (pesticides) include fungicides. These make a contribution To extrapolate from animal tests to humans, a number of to prevention of cancer by destroying molds that produce assumptions must be made. It is assumed that the biology of carcinogens in food. Organic foods are not protected the test animal is similar to that of humans , that an adj ustment against molds. can be made for the huge human population compared to a 5) Major problems for infants and children, outweighing limited number of test animals, and that the vast difference pesticide residues, are immunization against childhood dis­ in dosage given to animals compared to human exposuredoes eases and the need for adequate protection against traumatic not render the results invalid. Depending on the assumptions injuries and nutritional deficiencies. made and the statistical models derived fromth em, the results 6) Tolerance limits for pesticides are set with a margin of can vary greatly. safety of one-hundredth of the no-effect level. This is wide Wildavsky observed that if at the end of this exercise all enough to protect infants, children, and adults. we know is that the exposure to a chemical given to rats is 7) Natural pesticides are present in food at levels approxi­ thousands of times greater than human exposure , then we mately 1O,OOO-fold the levels of synthetic pesticides. know nothing of value. And regulations based on such results 8) The existing programs to analyze foods for pesticide make little sense, except to provide a spectacularly large residues are extensive and adequate. The concernabout pesti­ margin of safety. He notes that there are limited health bene­ cide residues has been blown out of all proportion. fits in eliminating tiny amounts of synthetic chemical resi-

16 Science Technology July 30, 1993 & ElK dues, when you consider the human body's ability to deal with the low level of natural carcinogens we are exposed to every day in our diet. In addressing ways to reshape regulations, Wildavsky suggests that chemicals should be discussed in terms of car­ cinogenic or toxic doses, rather than simply labeling the chemicals carcinogenic or toxic. Also, there are no guaran­ tees that any chemical dose will be absolutely safe. But, we can make good estimates as to what dose would be insignifi­ cant compared to other factors. Wildavsky asked, "How can a citizen tell the difference between sense and nonsense?" It is his belief that a citizen who is willing to put in some time and read the scientific literature can understand it. He adds that if garden clubs, veterans groups, retired persons, or those who run computer bulletin boards were to study different issues-global warm­ ing, DDT, or whatever-and become "citizen experts," they could become powerhouses. A hundred such groups in the United States would make a very large difference in creating a better-informed citizenry. Wildavsky's well-footnoted paper will appear in the con­ ference proceedings to be published by the Independent Insti­ A malignant tumor in a rat. Government tests extrapolate fr om tute, which is due out sometime before the end of the year. experiments with rodents who arefed What follows is Wildavsky's speech to the conference, enormous doses of a chemical, to the slightly edited for publication. likelihood of cancer in humans. "Gentlemen/rom the EPA , loyal American citizens, this is crazy!" Inset: Professor Wildavsky. Wildavsky: Environmentalist agenda is insane to kiss a whale this morning. It is, rWhat the heck are we doing?" This whole regulation business is a crock from be­ I think we need to understand the enormity of what has ginning to end. There is no truth in it, because there is no occurred in order to answer the reasonable question of the harm in it at the very low levels of our concern. gentleman from EPA [Environmental Protection Agency l, What you should keep your eye 6n in this shell game is "What should we do?" that technical thing called "risk asses�ment" or "criteria." It's A cup of coffeehas , roughly, a thousand chemicals. Of the criteria that matter. Ifwe could alter in a sensible way the these, we know something about 25 or 27 of them. It has criteria that EPA uses to regulate , 0 that our government in been estimated that each cup of coffee-likethe two I've had general uses to regulate, everythi g else would fall into this morning-has, roughly, 15 grams of carcinogenic or place. We would greatly reduce abandoned hazardous waste poisonous material. How much is 15 grams? It's roughly sites. So if you say, "What is the one thing to pay attention equivalent to what each and every one of us would get from to?" Pay attention to the criterion Of choice. At the present pesticide residues, from industry, in the food chain in one time, EPA uses the following criterion: It regulates at year. So, you want to make life safer, Mr. EPA? You want 374,000 times below any damage to man or rodent. � to show compassion for the poor SOBs who are getting cancer EPA's standard is, you can't ca se one in a million can­ every 13 seconds? Tell them to drink one less cup of coffee cers. Where did we get one in a million from? I know where each day. we got it from. Gentlemen, would �ou ever think of telling The amount of natural carcinogens-in everything that your girlfriend, "You're one in 1O,000"? There's no more to grows and expects to survive evolution, most plants and it than that. vegetables being chemical factories-----compared to the Go to your Information Please, orI some other almanac. amount of synthetic chemicals we get from industry, the Don't let another day pass before you do that. Look at acci­ ratio between the two, natural versus synthetics, is roughly dent rates, morbidity, and mortality rates for the last 100 to 99.99999 to 1. Put otherwise, the natural is 10-15,000 times 120 years. You'll see such an incredi Ie example of progress. greater by weight and potency per day than the synthetic. For black and white, for men and women, it's upward and The firstquestion that every child should ask is not, how onward in the most remarkable way

EIR July 30, 1 993 Scie ce & Technology 17 We've been doing something right it's not something that we should support. Conclusion: We must have been doing something right. What difference does it make what model you choose? It's one thing if the stretcher-bearers are carrying the youth Roughly, it makes this difference: When you've gone of America away. I used to joke to myself, and say this is the through this $1-3 million per qhemical test, and you've fol­ only country in the world that has a simultaneous crisis of lowed the procedures punctiliously-which is not easy to do Social Security and early deaths. In other words, without because you've got to slaughter the animals and put stuff on understanding the sheer insanity and inanity of what is being slides, and it's very long, and tedious, and expensive and, done, neither you nor I nor EPA employees can make any possibly, full of error. Even after all of this is done, what do progress whatsoever. . . . you know? Well, I will give you my rough translation. You The bulk, way over 90%, of governmental regulation of know within 4,000 to 4,000,000 times what's right. That's chemicals is based on animal cancer rodent tests. Like you, the margin of error. That's how we bound the uncertainties. it never occurred to me that I should ever study such a subject, Gentlemen from the EPA, loyal American citizens, this is let alone write about it. But if you understand that the criteri­ crazy! on for choice is the essential issue in all of this, and that I need to say one more thing. Bruce Ames and Lois Gold rodent tests are the devices used, then you realize that either have a theory called mitogen�sis which goes like this: The you have to claim ignorance or you have to go into the inner tests we give these animals are creating the cancers we find. sanctum. My position is very straightforward . I don't want That is, you're poisoning the poor creatures with such high anybody to miss it. These tests are worthless-absolutely, doses, they are engaging in tremendous cell division. It's unmitigated, worthless. Moreover, within the next few years well known among cancer spec;ialists and in the literature that you'll see that scientific opinion is moving irreparably and high rates of cell division lead to cancer. So, as we say, "You irrevocably against it. Now my students would say, "Well, take out what you put in." Apd that theory, while not yet maybe it's a second or third best." Say you want to go to proven, is gaining adherents. ! Baltimore, and I send you by way of Beijing. Is that second What's the rationale that I EPA gives for these tests? best? "Well, it's the best we have." $0, I have news for you: If the Most of you have heard of a few of the flaws of these best you know is between 4,00(}and 4,000,000, it's no good. tests, so I'll mention them, but I won't go into them in order to focus on things you haven't heard about that are more What should be done important. We know test animals are fed the maximum toler­ There are two other things We could and should do, some ated dose. This is very important because in comparing a of which we do now. We could! use epidemiology-the study mouse to a man, they are very small, we are very big. They of human subjects. We could have bigger samples and do it get fed huge doses-tens of thousands of times larger, some­ better by diverting some of the resources fromrodent cancer times, than us-so you have to control for that. So they say, tests. What's the objection tQ that? The objection is that "Well, these are specially grown mice, they're supposed to epidemiology only catches bigger effects. I'd say that's what have cancers." They consider a benign tumor just the same we want. We don't want to be chasing chimeras. If you look as a cancerous one because a benign one could become can­ at the morbidity and mortality statistics-promise me you'll cerous. But that is not the essence of the matter. Even the go home and look at the alm.nac, because unless you rub difference between the Food and Drug Administration (FDA) your nose in it and you see how brilliantly we have been and EPA-whereas the EPA uses one criterion and the FDA doing-why are we looking . for smaller and smaller ef­ uses another, they differ by a factor of four-that's not the fects? Why this romance 'tVith minuscule causes and essence of it. All the things you've heard about "megamouse" infinitesimal effects? Well, we could expand epidemiology. experiments are not the essence. The essence is the statistical But we're still going to m�ss some things. I stipulate argument. that. But because we don't l¢now what we're doing with In order to extrapolate from a rodent to a human, it is animal cancer tests, we're m�ssing things there, too. The necessary to control for dose and size. Well, there are many only thing you get is, at random, you might find some dozens of statistical models that could fitthe data, but unless cause of harm to human beings, but, otherwise, you you know how cancer is caused, unless you have a mechanis­ haven't the foggiest. So it's not as if the preferred method tic explanation of cancer causations, there is no way to choose is catching things that epidemiology won't. a statistical model. Immediately the small number of social The second alternative is called mechanistic studies, scientists here should tell us, "Is this the case where the learning about the mechanisI1l1s of cancer causation as we choice of the model over-determines the results?" You have recently done with dioxins. If you know the mechanism, bet it is. EPA uses what it calls a default model. So I then you can choose much more appropriate statistical mod­ will give you my jaundiced view of this: It's a default els. You can do real science. of understanding. But I do them a disservice because In the work I've done, I carry on an argument with Leo they do know what they're doing, as I will explain. But Levinson, a student who wrote some stuff with me and who

Science Technology July 30, 1993 18 & EIR was a former project director for EPA .. ..Leo says, "Let's The second one is the replacem�nt of positive evidence go back to something less insane." In the olden times we with negative evidence. Show me It won't do harm. That dido't separate what caused cancer from what caused other ain't so easy to do, as anyone who bas ever tried to defend things. If we had some reason to worry about a chemical, we himself or herself against an accusation, like, when did you would say, "Let's use whatever knowledge we have and let's stop beating your mother up, or wh$ever. increase that by a hundred as a safety factor. " If there's some Third, no dose response level. As I tell my students, in special reason to worry, we increase it by a thousand. And this business dose is everything. Neverallow yourself to utter said, rightly, "That would be better." a sentence about contamination without saying "what" and Leo I am not in favor of idiot economics. I am not in favor of "how much," compared to which. It's hard to discipline your­ the argument that says, "Here is something stupid for which self but it is essential. The third environmental proposition is we are going to pay $900 billion, I can get it wholesale that every exposure is harmful. for $600 billion." There are things that ought not to be There is a wealth of evidence in thehistory of toxicology, the study of science of poisons, that the very large majority done .... in My objection to what Leo wants, to using the old rule of of cases there's a level below which tlitere is no harm, and there thumb which worked well for centuries, is that it doesn't get may even be some good.This is denied by environmentalists. to the nub of the matter. It doesn't speak truth to power; it By putting these propositions together, environmentalists doesn't tell you what is right and what is wrong. It would cut have substituted assertion for evidence. What is the possibili­ way down on the craziness, but it's not what we should do. ty? Science might say something like, "I think it likely that," What should we do? The first thing is, we should reject the or, "There's a high probability that"-that's no good any current system root and branch. Now, I don't mean I know more. You have to show perfectiQn. They've shifted the how to get us to do that. I will confess immediately my great burden of proof. You have to have 100%knowledge . weakness. What I mean is intellectually, by whatever reason What we have to do is reject these theses, especially the is left in our minds, we should reject it, because it is false. last one. The last thesis of environmentalism is the "precau­ There is no truth in it and, therefore, there is no health in it. tionary principle" -don't be half safe. If there's any possibil­ We can make our people sicker and poorer at the same time ity that something will do harm, you have to stop it. In a book in the name of health. What sort of compassion is that? called Searching fo r Safety, I argued that this would destroy What I prefer to do is to say, "Stop the romance with the progress of western civilization; make everybody sick minuscule causes and infinitesimal effects." Replace it with and poor. what we know how to do, with mechanistic studies and with Why did the Greeks and Romans only live to 35? We epidemiology. Now environmentalists are turning against have more than doubled that longevity because we didn't mechanistic studies. How can you tum against studies of follow the precautionary principle. Then I realized that I've cancer causation? Not easy. But they've noticed something been foolish. We all know what this is. We all ieamed about important. The more we know, the less dangerous everything it in school. Don't you remember? It's called "Pascal 's Wa­ appears. You say, "What's the result of all these studies?" ger." Should you believe in God, or!Ilot?Well, if you believe Study, study, study, do less, that's anti-environmental, and God doesn't exist, what have yQu lost? But if you di�be­ right? So we should focus on the key question, the question lieve and God does exist, you have lost eternal life, so you of the criterion of choice. should believe .. .. This precautionary principle . . . is the nub of environ­ The environmental paradigm mentalism which is used everywhere-it is fallacious in its Now I want to end by placing my remarks in the context whole, it is fallacious in its part, it c� leave us in a devastated of the environmental paradigm. I placed this question to condition. Under capitalism, there is no chance we will have myself: Why is it that science seems so poor? I thought at a situation where we run out of resolllrces; that is, that we will firstof scientists doing terrible work. But, it's not that. What not have a sustainable society. The; only way we will create it is, is that the environmentalists' paradigm has devalued an unsustainable world is if we adppt the environmentalist science. Not directly; nobody says, "I'm doing this by witch­ paradigm .... craft." We must reject the environmen4l1 paradigm and the regu­ The first proposition is the replacement of probabilities latory criteria that stem from it, aDd replace it with criteria with possibilities. Before, when you had to show probable like preponderant evidence. It's tru� that in some cases, evi­ harm, you had to show preponderant evidence. Now, possi­ dence is evenly divided. But in mpst cases you see where bility is it. If anything could possibly be harmful, then you science can come in and say, "Yes, it's likely that there's have to regulate it. Well the only way to prove that something more danger or less danger one w�y or another." If we did is not possible is through a scientific impossibility theorem, that, we would be on the road to slmity, and we would im­ not your everyday cup of tea. So that's the first one, the prove people's health. There is a teal place for regulation, replacement of probabilities with possibilities. but not when we deprive it of all sense.

July Science Technology ElK 30, 1993 & 19 TIillFeature

Drug legalization: It must be stopped, again

by Michele Steinberg

The author is the fo rmer editor of War on Drugs, the magazine of the National Anti-Drug Coalition.

With the infonnation provided in this feature pack�t, the American people must engage in a spirited battle-once again-to stop the cock-sure drug legalization lobby from gaining another foothold in the destruction of the nation. From London to Washington to Bolivia, the drug legalizers, reprejSentedby the Inter-American Dialogue, the Drug Policy Foundation, and a network of private organizations affiliated with the United Nations, are on a drive to legalize the drugs that destroy the minds of children and the sovereignty of nations. Today, their campaign is being promoted under titles like "de-demonization" and "decriminalization" of drugs, and "harm reduction," but the ultimate goal is the same: Legalize, and thereby spread, the drug trade. I The model for the successful fight against dope legalization is the work of the "Anti-Drug Coalitions" of the United States, Ibero-!America, and Europe, which stopped drug decriminalization dead in its tracks in the United States in 1977-80. At that time, collaborators of Lyndon LaRoucht, the founder of EIR , uncov­ ered the massive international plot to use drugs to usher in the "New Age," a philosophical and cultural assault on western Christian civilization. Against great odds, including a President of the United States, Jimmy Carter, who openly proposed the federal decriminalization of drugs fot "recreation," the Anti-Drug Coalitions unearthed the real secrets of the drug tr�de. In the pamphlet "Get the Dope out of the White House" (1977), in the international bestseller Dope, Inc. (1978), and finally in the pages of War on Drugs magazines (printed in six languages in 1979-82 and still being published today in several European coun­ tries) of the Anti-Drug Coalitions, exposes were published which demonstrated that financial institutions, including every major bapk in the United States, Lon­ don, and Switzerland, were involved in drug money-laundering; that powerful

20 Feature July EIR 30, 1993 Cocaine prices plummet as U.S. market is saturated with cheap supply Tons sold Millions $ per ton •

700 $700

600 $600

500 $500

400 $400 ' · The skyrocketing of $300 300 cocaine consumption as , the druglords deliberately reduced 200 $200 prices over the last ten . years, gives the lie to the 100 $100 pro-legalization lobby's main argument. The figure is taken from o $0 , EIR'sNov. 9, 199O 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 fe ature on "Dope, lnc."

institutions like the Anti-Defamation League of B 'nai B'rith in order to install aU. S. -puppet government of known drug (ADL) were funded with laundered drugmoney and had been traffickers. the initiators of drug decriminalization; that the staggering On May 15 of this year, the London Economist, the lead­ growth of drug use was not a sociological phenomenon, but ing pusher of the free-trade doctrine; that justifiedopium traf­ the result of MK-Ultra, a hideous secret intelligence project fic in the 1780s, launched a new d�ve for legalization. The launched by British intelligence, Army intelligence, and the Economist faithfully reflects the British establishment view, CIA in the United States, and the notorious Tavistock Insti­ which has never accepted that mindraltering, hallucinogenic tute of London in order to spread LSD. drugs should be illegal, nor that the globalist financial institu­ The "war on drugs" was never won, because, as one of tions like the InternationalMonetary Fund should be prohib­ the articles below will show, it was never really fought. ited from profiting from the drug trade in the name of free The dope interests fought back, assassinating leading drug trade. As late as 1948, the Britisll government refused to fightersin Ibero-America, Italy, and elsewhere, and subvert­ sign the Single Convention on Psychotropic Drugs, which ing the U.S. Justice Department, which followed the script prohibited production of such subs�nces. of the ADL to frame up LaRouche and cripple the possibility The Economist gloated that the kboks of the drug legaliza­ of winning the war on drugs. The cost of that treason is only tion lobby are again openly enjoyin$ an audience at the U.S. now being measured as the full story emerges of the spiritual White House, that the House of Re}jlresentatives Select Com­ molestation of children through school programs like "out­ mitteeon Narcotics and Drug Abuse �e strongest congression­ come-based education," the "Children of the Rainbow" cur­ al forum against drugs) was shut doWn withouta peep fromthe riculum, and the ADL's "World of Difference" program, American poop., andthat the Clinto� administrationhas "done which are spreading among youth profoundly corrupted by what no American administration haa dared do in living memo­ the deliberate spread of the rock-drug-sex counterculture. ry-set the scene for a proper debate�" But, once again, American citizens can and must fight back. The argument for the legalizadon of drugs amounts to one: genocide with a profit.This argument has been made by New Age equals new world order the British oligarchy for more than 100 years. In 1893, the The real aim of the drug legalization frenzy is to enforce British Parliament commissioned what turned into a nine­ an international policy of genocide-the "new world order" volume study on hemp (marijuan.), then grown in India, that began in 1989 with George Bush's population war Britain's largest colony. The study! was an elaborate justifi­ against Panama, where civilians were militarily exterminated cation of an extensive hemp tax system, and the continued

EIR July 30, 1993 Feature 21 sUbjugation of the coolie population by fostering their use of carve out a "middle ground" between current anti-drug laws ganja (marijuana). Among the witnesses was a manager of a and "extreme libertarianism." , British-owned tea company in India who said, " ...I cannot Nadelmann, who was cite� as an authority in a recent see any harm in the use of the drug. All of those who appear article in the London Economi};t, which has long promoted to use it are good, quiet and willing coolies." The Indian drug legalization, identifiedso�e ofthe "back door" methods Hemp Commission report concluded that legalized hemp was which the drug legalizers are promoting as seemingly innocu­ both not harmful, and highly profitable for the British Em­ ous ways of achieving decriminalization. pire's colonial treasury. These include: Every single argument by the 1990s drug lobby can be • Encouraging the spread �nto the United States of the directly traced to the British Empire defense of their "coolie" "harm reduction" movement, which originated in The Neth­ program in India, and the brutal opium wars of the 1850s and erlands and Australia, and whiqh seeks not to stop drug use, 1860s in China. The latest variant is that drug legalization but to prevent drug users from harming themselves by, for will "take the profit"out of drugs, reduce prices, and thereby example, contracting AIDS, a� though drug use in and of solve the problem. But the simple facts show that, over the itself is harmless (see Documentation for more details); last 10 years, a threefold cocaine price drop has occurred as • Forcing a shift in U. S. dI1lgpolicy away from interdic­ the deliberate policy of the drug mafia, and that this has tion and eradication to treatm¢nt and "demand reduction" caused a fourfold rise in consumption-as the graph above programs, an issue currently taking top place in the national shows. debate over how the United States should change its approach If there is to be any republic on this planet, the renewed to illegal drugs. I opium war in the form of legalizing drugs must be stopped. • Using the AIDS crisis to tPsterdistribution ofhypoder­ mic needles to intravenous drug users.

Propaganda for drugs United States The "de-demonization" process hailed by Nadelmann is already well under way. Over the past several months, the question of whether drugs shouIkibe legalized has been given extensive play in the media-I1lore so than at any time since the pro-drug frenzy of the mid- ;andlate 1970s. Drugdecrim is coming Not only have the usual susrects, e.g., the Village Voice and Rolling Stone magazine, rai�ed high the pro-drug banner, through theback door but such "respectable" outlets ,.s American Heritage maga­ zine and Daedalus have staged prominently featured debates by Kathleen Klenetsky on the subject. CBS-TV's wid�ly viewed "60 Minutes" re­ cently provided what one pro-l�galizer hailed as a "surpris­ ingly objective" view of LSD, while Peter Jennings, ABC's With the advent of the Clinton administration, and on the national news anchor, did a seg�ent on the narcotics trade in corpse of the utter failure of Bush's so-called War on Drugs, Bolivia, allegedly proving that idrug interdiction as a policy drug decriminalization has jumped back onto the U. S. politi­ does not work. cal agenda. The London Economist, reIl'resenting the financialpow­ Although several influential Cabinet members-Office ers in the City of London whicihran the nineteenth-century of Drug Policy (ODP) head Lee Brown and AttorneyGeneral Opium Wars against China and to this day control large Janet Reno among them-have recently asserted that the portions of the $700 billion an�ual trade in illicit drugs, set administration does not favor legalization, there is wide­ the tone for the latest legalizatiop drive with its May 15 issue, spread optimism within the drug-Iegalizer networks that they which featured a cover story blJlntly titled "Bringing Drugs can overcome such opposition, and that major changes in the within the Law. " I direction of legalization are in the air. Key spokesmen for the In an editorial and two accompanying articles, the Econo- drug lobby say they anticipate that the Clinton administration mist argued strenuously that 'the only effective way of will usher in changes of policy that will move the United handling the drug plague is to hjlvegovernments manage the States in the direction of de facto decriminalization-as op­ distribution of drugs and ensur¢ "quality control." Not only posed to outright legalization-over the next few years. should drugs be legalized, said �he Economist, but scientists "What we will see is a gradual process of 'de-demoniz­ should be encouraged to discqver psychoactive drugs that ing' drugs,' predicts Prof. Ethan Nadelmann, who runs could be used to provide "pleas lIre" without the adverse side Princeton University's drug policy working group, which is effects of cocaine or heroin-s�milar to the drug "soma" in scheduled to produce a major reportlater this year that will Aldous Huxley's novel Brave "few World.

22 Feature EIR July 30, 1993 A Drug Policy Foundation press conference in 1989 announced a $10,000 award to Baltimore Mayor Kurt Schmoke: Left to right are DPF president Arnold Trebach , Richard Dennis, and National Organization fo r the Reform of Marijuana Laws director Kevin Zeese.

The Clinton administration: changes ahead drug policy issues which are being IntrepretedI by the pro- While no member of the Clinton administration has pub­ legalization lobby as good omens. These include not only licly called for legalizing drugs, it is hardly lost on the legal­ Clinton's decision to cut the staff ofthb aDP by 75%, leaving izers that the new administration is largely composed of the a skeletal staff of approximately 25 ipeople, many of them yuppie byproducts of the 1960s counterculture, who are far clerks, but also the very obvious avo· dance of the use of the more personally familiar with, and sympathetic to , the drug term "war on drugs" by administratior officials. In addition, culture, and that there are strong parallels between both the the National Security Council has reportedly demoted drugs I outlook and personnel of the Clinton regime and the pro-drug from third place to last, on a list f 29 national security Carter administration. priorities. Nadelmann pointed to the presence of such people as Legalization proponents cite seve al other administration Morton Halperin, formerly of the American Civil Liberties decisions as indicative of "new thinking" on drug policy, Union and now in the Defense Department, as indicative of among them, the fact that Clinton's new AIDS czar designee, the "new thinking" on drugs within the administration. Kristine Gebbie, favors needle-exchJnge programs. Furthermore, the top layers of the Clinton administration In a June 28 television interview, Gebbie commented that are peppered with members of the Inter-American Dialogue the idea of needle distribution programs for addicts, "as a (lAD), a collection of leading members of both the U. S. and part of a comprehensive strategy to d�al with the intersection Ibero-American financial and political establishments, which between AIDS and substance abusd ... deserves careful has publicly called for legalizing drugs, so that Ibero-Ameri­ attention." "We're looking forward to a major review of can countries can use the proceeds to pay back their debts to needle exchange programs that is du� out within a very short the New York City and other money-center banks. period of time. As soon as I have a cHance to see that coming Secretary of State Warren Christopher, Interior Secretary out, I will be starting some additidnal conversations with Bruce Babbitt (a close personal friend of Richard Dennis, the people about how we respond." major moneybags behind the pro-drug Drug Policy Founda­ Additionally, the fact that key Iadminist ration officials tion), HUD Secretary Federico Pena, Richard Feinberg, the have placed heavy emphasis on drug treatment and demand­ National Security Council's Latin American policy adviser, reduction programs, while criticizin interdiction policies, is and Peter Tarnoff, the number-three man at State, were all seen as a sign that, given budgetary donstraints, a significant long-time members of the lAD. portion of federal spending on narcbtics control will be di­ The Clinton administration has taken several actions on verted away from interdiction.

EIR July 30, 1993 Feature 23 omist, the meeting was held "t(1) rethink the country's failed drugs policies." Reno "starte the day by describing her doubts about America's curre t approach," the magazine reported, adding that the conference "ended, significantly, with a discussion of the merits f legalisation." "Neither Mr. Brown nor N1s. Reno, and certainly not their boss Mr. Clinton, has so fJ.supported legalization," the Economist went on. "But they ?ave done what no American administration has dared do in living memory-set the scene for a proper debate. " Although there were very s�ongI arguments made against legalization by a number of participants (see Documenta­ tion), the conference was notable for the fact that leading spokesmen for the drug lobby ere invited to I attend, includ­ ing Princeton's Ethan Nadelmann and the Drug Policy Foun­ dation's Arnold Trebach. Mor over, many other attendees who do not fall into the legaliiation category, nevertheless voiced openness to certain policies that the drug legalizers are promoting as "back door" rrlethods to decriminalization. The conference was presided over by Congressman Charles Schumer (D-N. Y.), an asset of the rabidly pro-drug Anti-Defamation League (AD who has taken over most of the responsibility for drug policy in the House of Representa­ Drug legalization advocate Ethan Nadelmann. tives, after anti-Iegalizer Rep. i Charles Rangel's (D-N.Y.) House Select Committee on Narcotics Abuse and Control was shut down in January (anotHer "positive step," according Speaking to the 1993 National Summit on U.S. Drug to the drug lobby). Policy, which took place in Washington, D.C. on May 7, In his opening statement, Schumer listed some of the AttorneyGeneral Reno questioned the effectiveness of inter­ "controversial conclusions" hel has reached concerning the diction programs, citing a governmentreport which asserted shifts required in U.S. drug policy. Among these, he said, that, in Reno's words, "to have any impact on drugs in were that "international eradicaiion and interdiction has been America, you would have to interdict 75% of the stuff, and a near total failure," which meahs "we should seriously con­ that would be economically prohibitive." sider eliminating most of the spending on foreign eradication There is no question that a critical dearth in effective and overseas interdiction ... l It is clear that we cannot treatment programs exists in the United States. Currently, a eliminate the drug supply at t�e source," Schumer stated. substance abuser wishing to get into a treatment program "The nearly $3 billion we spend annually on foreign interdic­ must frequently wait for two years before a slot is available, tion ...would be far better spent ...on demand-side treat­ making a farce of the treatment process. Once treated, as ment programs ....If many of us on the Hill have our way Reno has pointed out, these people will require extensive ...we would switch allocation of drug funds dramatically followup, including provision of a decent job, to kick the from its present distribution ....We should be moving to­ drug habit for good. ward a funding distribution that [allocates] 50% for treatment Nor is there any question that the billions which the Bush and prevention, 40% for law enforcement, and no more than I administration lavished on interdiction failed to put a dent 10% on international interdicti n and eradication." into drug flows. However, there cannot be an effective strategy for reduc­ ing the availability of narcotics unless that strategy involves destroying the source of drugs, the distribution of drugs, Documentation and, most importantly, the "respectable" financial networks which control the profitsof the drug trade, such as the Bank From The Economist, May 15, 1993 editorial, "Bring Drugs of Boston and the Hongkong and Shanghai Bank. within the Law" .'

Decrim through the back door Done properly, [legalizatiO ] would allow governments The May 7 Drug Policy Summit reflected the sea-change to take control of the distributibnh and quality of these sub­ now taking place in U. S. drug policy. According to the Econ- stances away from criminals. Quality control is decisive,

24 Feature EIR July 30, 1993 because much of the damage done by drugs bought on street approaches. The European group has asked the Drug Policy corners is caused by adulterated products; in much the same Foundation to help spread the Frankfurt resolution ideal to way carelessly distilled hooch can cause blindness. the United States and to other continints. Supply would be re gulated by a system of government Mayor Kurt Schmoke of Baltimore is working with us . licences analogous to those already in force for tobacco and . . . We intend to hold the first majbr meeting of the harm alcohol (and which would serve, among other things, to keep reduction group in Baltimore November 16th and 17th , and drugs out of the hands of children), backed by strict policing the harm reduction principles will �e featured in the Drug and heavy penalties .. .. Policy Foundation Conference that ill follow [in Washing­ Such legalization would not magically dispense with the ton] from the 17th to the 20th . need for policemen, but it would make the needed policing Here are a couple of the major principles of the harm more manageable. Par ticularly in the business of softer reduction approach: Tone down the harsh rhetoric which 1 drugs, where the taxes can be lower and the restrictions less dominates the American approach to drugs. We have already onerous, and where the first trial steps toward legalisation started to do that. To hear the Attorn�yGeneral [Janet Reno], should take place, it would undermine the "risk premium" to hear Congressman [Charles] Schumer, we are starting to that provides drug cartels with their profits . Taxes raised on think more calmly and more rationally .... what is reckoned to be the world's largest untaxed industry Third, start talking about AIDS. ..We have got to face would help governments spend money on treatment and edu­ up to the fact that there is a nexus tktween illegal drug use cation, which would do more good than the billions currently and AIDS, and we 've got to start embarking on programs spent on attempting to throttle the criminal supply of drugs that have some impact on that . The main one is needle ex­ of all sorts . change. We have started to do tha , and that is absolutely There is another consideration .... Progress is being crucial. made by scientists in understanding both what causes the Finally, I think we have to develop new and more positive pleasure of drugs, and what makes the pleasure so hard to roles for the police and prosecutors I Police and prosecutors give up ....Addiction research should be encouraged to should say that their job is to help ake treatment and harm . . . move beyond devising better therapies for those who reduction work. . . . I wish to kick the drug habit, into the invention of safer, more effective, and less habit-forming highs. At the moment it From "Thinking Seriously About A cannot, for a safe drug equals a "substance abuse" equals a bition." (Daedalus. Summer 1 crime.

Dr. Arnold Trebach. president. Drug Policy Foundation. From a presentation to the 1993 National Summit on Drug Policy (May 7):

...There are two types of change. One would be legal­ ization; one would be harm reduction. Now harm reduction is, I think, the path to go now, because I do believe that under harm reduction, we could make major moves without fundamental change in law. . . . What are the bases for this? ...I start out quite differ-' ently from most people here in that I have a differentview of the nature of drug users. I think most people here probably look at drug users as utterly irresponsible people who have to be controlled and who really are a threat, in and of them­ selves, by taking the drugs. My view is that drug use is almost like being gay. It is merely a status. Behavior is what counts. You can be abso­ lutely abstinent and a horror, or you can be a drug user and a decent person .... Most of my daily work right now in the Drug Policy Foundation is centered around harmreduct ion. The Frankfurt Resolution from Europe is an essential part of the new inter­ national harm reduction movement. That resolution has been Mayor Kurt Schmoke. who will host a signed by 15 European cities, calling for harm reduction conference in Baltimore next IVnvnnnl'r

EIR July 30, 1993 Feature 25 Assistant Professor of Politics and Public Affairs, Princeton University: Ibero-America

To legalize or not to legalize? That ...is not really the right question. The appropriate question is much broader, and it is one that incorporates the "legalize or not" question with respect to particular psychoactive drug products. What, Drug legalization simply stated, are the best means to regulate the production, distribution, and consumption of the great variety of psycho­ back on the agenda active substances available today and in the foreseeable future? by Valerie Rush ...There are better and worse types of drug prohibition, with the Dutch "harm reduction" approach epitomizing the former and the American "war on drugs" the latter. Indeed, The past few months have seen a dramatic resurgence of the for many of those characterized as advocates of drug legaliza­ so-called drug legalization debate in several Ibero-American tion, the Dutch model offers an alternativethat is preferable countries key to the drug-traffiokingchain , among them Co­ not only to current U.S. policies but also to the extreme lombia and Mexico. In both of these countries, the debate is liberation model.

Judge Stanley Goldstein, presiding judge, Miami Drug Court, to May 7 Drug Summit:

I do believe that legalization is a cop-out. It is based primarily on frustration, because judges are getting to the point where they don't believe in what they are doing. EIRwarned of drug I do know, from personal observation, of the people who come before me and from the study done at Brigham and legalizationpush in 1991 Women's Hospital in Boston, that cocaine causes blood ves­ sels that [bring] oxygen to the brain to constrict; brain cells The fo llowing are excerpts from a 150-page EIR Special denied of oxygen die; cocaine causes brain damage. The Report published in 1991, entitled "Bush's Surrender to longer you use it, the more you do damage to the brain. Dope, Inc. " In it, the story is told of how the nation of Legalizing cocaine means it would be sold or given to users Colombia has been subverted by the combined fo rces of who are becoming more and more brain-damaged. the drug cartels and pro-legalization fo rces inside the How would these drugs be distributed? If the government United States. markets the drugs and forces the users to rob and steal to get money to buy cocaine, we are simply casting the government When George Bush toured Ibero-America at the end of in the role of the street dealers today who contribute to the 1990, he unabashedly boasted that his Andean anti-drug crime problem and homelessness. strategy had been one of his three major foreign policy If the government distributes the cocaine free, then "successes," along with Panama and Nicaragua. And more and more people will become brain-damaged. They when his drug czarWillia m Bennett resigned that post one will not be able to function. They will become homeless month earlier, he told an incredulous public that his work and depend upon the government for food, housing, and was done, and that the United States "was on the road to hospitalization. . . . victory" in beating the drug plague. Why should the government spend millions of dollars to Bush and Bennett lied; the reality is quite the opposite. create zombies who are totally dependent upon the govern­ Not only is consumption of mind-destroying drugs like ment to spend more money when we have proved in Miami marijuana and cocaine not declining, or even leveling that the vast majority of these people can be saved and trans­ off, it is skyrocketing ....The official U.S. government formed into contributing citizens. What effect is that going statistics that claim that drug use is declining are based on to have on your brain? absurd polling methodology and deliberate falsifications. The vast majority of people in this country are law-abid­ ...Drug production in Third World nations is also on ing. They don't experiment with cocaine, crack, heroin, and the rise. According to conservative calculations based other drugs simply because it is illegal. If you make it legal, mainly on official production statistics supplied by the I believe you are going to triple or quadruple the number of U.S. Drug Enforcement Administration (DEA), EIR has junkies that are roaming the streets today.

26 Feature EIR July 30, 1993 no longer limited to an esoteric exchange of opinions among ernments inthe Americas in addition to the Clinton adminis­ a handful of economists, professors, and radical journalists. tration, but this is the firsttime it has owned a President. It is now a "policy option" on the agenda of presidential It is equally significant that in Peru , another major drug­ candidates-and even Presidents. producing country, drug legalization advocates have failed On June 6, Gonzalo Sanchez de Lozada was elected head to get to firstbase , perhaps as a result of the Alberto Fuj imori of state in Bolivia. A millionaire oligarch with a gringo ac­ government's unyielding offensive against narco-terrorism. cent, Sanchez's first policy statement before even taking of­ fice was to argue the futility of a war against drugs. In an Colombia: anti-drug resistance fades interview with Spain's Tiempo magazine, Sanchez insisted, Effortsby mafia-alliedfinancia l interests to force a debate "Prohibition has never achieved anything ....It is terrible on drug legalization back in the late 1970s in Colombia were to say it, but taxes should be placed upon the drugtrade ." a dismal failure. The nation still had its dignity, and citizens It is no accident that Sanchez should be the firstPresident were outraged at the proposal. After more than a decade of on the continent to endorse drug legalization. He is a member targeted narco-terrorism on the one hand, and an appease­ of the Washington-based Inter-American Dialogue, the Es­ ment policy "made in the U.S.A.'! on the other, moral re­ tablishment's premier think-tank on Ibero-American affairs sources have been significantly eroded, giving corruptedele­ which has advocated drug legalization for years. The Inter­ ments of the political elites their opportunity to revive an American Dialogue has members "on loan" to several gov- issue no longer considered taboo. Ernesto Samper Pizano,

calculated that the drug trade is growing so rapidly--over President Bush is fully complicit in the legalization 15% a year-that it is effectively doubling every five strategy. He has stated that his government's officialpoli­ years .... cy is to reduce drug consumption by 50% over the next Smelling defeatism in the air, the lobbyists for drug decade-not eliminate it. The problem begins with Wash­ legalization have gone into a frenzy of activity, in the ington's economic policies. Virtually every U . S. adminis­ United States and abroad, to convince people that the tration since [after] that of John F. Kennedy has premised war on drugs is unwinnable. What was once considered its economic and financial policies on strict adherence morally reprehensible to the majority of U. S. citizens­ to the anti-growth dictates of the International Monetary that our children should have access to mind-killing nar­ Fund (IMF) and the international banking establishment. cotics-is now being openly published by such prominent This system has placed a premium qn investment in specu­ U.S. establishment figures as former secretaries of state lative activities, and not in real production. What has George Shultz and Cyrus Vance. happened as a result, is that the international financial The legalizers have already made significant inroads. system has become progressively more addicted to the In the name of adapting to the "new realities," free hypo­ flowof drug monies, to the point wijeretoday , the banking dermic needles are now being offered to heroin addicts in system is as hooked as a junkie on heroin. Not surprising­ American cities. Free condoms are being distributed to ly, the international financialestabJishment is opposed to school children, while Satan worship is the ever-popular any serious war on drugs .... theme of rock music. In this bestial "counterculture" of Getting absolute control of Dope, Inc.'s billions satanic music and sexual promiscuity, drugs are presented means legalization. In practice, this has meant working as just another part of the "new reality" with which Ameri­ with certain groups of drug runners to control or eliminate cans must learnto coexist. others. In the case of Colombia's ;drug cartels, the U.S. The drug lobbyists in the developing sector are work­ government has maintained a wo�king alliance with the ing hand-in-glove with their colleagues in the United so-called Cali Cartel against the Medellin Cartel. . . . States. In a major drug-producing country like Colombia, The western financial Establisliment's current timeta­ legalization advocates point to the uncontrolled drug ble is to achieve a global legalizeki narcotics "industry" abuse in the United States as the primary justification for before the end of the 1990s. A difflcult proposition? Yes, legalizing the drug trade at home. "Why should we spend but at this point not an unlikely lone, if the American money we can ill afford and sacrificeour finest citizens to people continue to tolerate discussion of legalization as a wage a war that is not ours?" they argued. It were better viable "option," continue to elect :increasing numbers of to "control" the violence through legalization ....And legalizers to public office in the United States, and contin­ so, morality gives way to the pragmatic politics of the free ue to tolerate policies which for morethan 20 years have deliberately market ethic, and the negotiations are launched, the deals fomented drug use an4i the drug trade at home struck .. .. and abroad.

Feature 27 EIR July 30, 1993 the man whose name has been synonymous with proposed Discussion over how to de l with Ossa Escobar's case drug legalization in Colombia since 1978, is today the front­ was rapidly turnedin to a nationwidl e debate on drug legaliza­ running presidential candidate of the ruling Liberal Party. tion, with the weekly magazine Semana-owned by the fam­ Last May's police discovery of an illegal cache of mari­ ily of the mafia-linked former Ptesident L6pez Michelsen­ juana in the briefcase of Bank of Colombia co-director Carlos taking the lead. Its June 19 editi�n contained interviews with Ossa Escobar served as an important testing of the waters by inftuentials from the whole spec�rum, ranging from an arch­ the legalizers. Instead of a public outcry and demands for bishop, to the gamut of presidential candidates, to respected l Ossa Escobar's resignation, voices from the Congress, the political commentators. The n arly unanimous sentiment, political parties, and the media were raised in praise of the with a few tepid exceptions, ,as that drug legalization­ drug-abusing banker. Sen. Gabriel Muyuy said, "I admire now that repression had proven a "failure"-was the sole [Ossa's] courage." Sen. Pedro Bonner: "The Senate should policy option remaining to the l government. The "debate" thank Dr. Ossa for the privilege of hearing him tell the truth came down to whether it should be imposed unilaterally or forcefully and courageously." Enrique Santos Calder6n, a multi nationally , and whether it should be focused on decrimi­ prominent editor of the newspaper El Tiempo. declared that nalizing consumption or whethe ! the drug trade in its entirety Ossa's only "crime" is that he is a product of the 1960s; should be legalized and taxed. after all, argued Santos, since time immemorial mankind has The fact that only three of t�e eight or nine presidential sought "artificialparad ises and self-stimulation ." pre-candidates have publicly voiced their opposition to drug As the Ossa Escobar scandal was breaking, a London­ legalization-and one of those i a cleaned-up Samper Piza­ based think-tank calling itself the Andes-Amazon Founda­ no!-shows how tainted the Colombian presidential cam­ tion surfaced to announce a series of internationalforu ms on paign already is. Will 1994 see trielegali zers take over anoth- drug decriminalization, to be held in London, the United er Andean government? States, and Bogota over the next 12 months. The foundation 1 . argues that only the international decriminalization of drugs The Catholic Church equivocates can assure the moral preservation of the world's political and The inroads made by the legkI lizers in Ibero-America are social institutions. The foundation's purpose, according to perhaps best indicated by the Catholic Church's factionalized its own literature , is to secure "universal blessing" and "gen­ position. A February 1993 semipar on drugs held in Bogota eralized approval" for such a move. and sponsored by the Latin American Bishops Conference

The huge bust of a cocaine laboratorydubbed Tranquitandia. in Colombia. occurred when the nation was stitlfighting narco-terrorism . lnsets: Ernest Samper Pizano in when he toured 1979. the United States stumping fo r drug legalization (right), and a recent photo of him as the leading Liberal candidate fo r President, pretending to be more "moderate" on the drug issue.

28 Feature EIR July 30, 1993 (CELAM), released a series of conclusions which open the tion would cause "a disaster," given that a legalized drug door for an eventual endorsement of legalization. One of supply would increase the number <»faddicts in the country those conclusions queries "whether total prohibition is the by 50%, raising to nearly 18 million the population that solution, given the experience of failure of this policy, or if would be at risk from such a policy.: it might not be better and more efficient to design a wiser Y aria ridiculed the arguments f Milton Friedman and guideline for the whole process, ranging from production other legalizers who insist that the! state's job is merely to through consumption." CELAM also urges "a pastoral dia­ educate the population on the potential danger of consuming logue with the drug traffickers." narcotics, as it already does regard�g tobacco or high-cho­ At least two Colombian archbishops, Msgr. Augusto lesterolfood s. "They are proposing: that the state administer Trujillo Arango of Tunja and Msgr. Pedro Rubiano of Cali the chaos," says Yaria, who goes on to note that "Friedman's (also the president of the Colombian Bishops Conference), eminently economistic theory [of legalization) would merely have called for a national debate on legalization. A Colombi­ expand the drug market to include laboratories and banks." an source within the Catholic Church informed EIR that the Yaria concludes: "I think [lega}jzation] is a way to lubri­ majority view still opposes legalization, but that the "consen­ cate social conflicts. If we have many people who seek drugs sus politics" dominating the CELAM seminar provided the as an escape from their problems, they will find only one would-be legalizers their platform. escape through legalization, and that is death. Thus, legaliza­ Some churchmen in Mexico appear to have accepted the tion is an aberration given that people are being educated to legalizers' terms of debate as well. Javier Lozano Barragan, drug themselves." Bishop of Zacatecas, is quoted in the June 1 issue of the The same publication interviewed numerous politicians magazine Siempre that "if we decriminalize the consumption and think-tankers for their positions on drug legalization. of drugs, we would break the threat of power which makesthe While every individual involved in rehabilitation of drug drug traffickersso terrible." Just weeks earlier, the outspoken addicts came out squarely againstl legalization of drugs as anti-drug Cardinal Juan Jesus Posadas Ocampo was mur­ tantamount to legalizing death, thete were others who came dered by mafia assassins in what many Mexicans view as an out in favor of legalization. Amol!lg these is Luis Moreno explicit warningto the church. Ocampo, a former prosecutor and: the founder and current president of "Poder Ciudadano," amon-government organi­ Legalization debate spreading zation financed by the U.S. State Department's Agency for The high-level debate over drug legalization in Mexico International Development and with an agenda strikingly has reached frightening proportions. In May, Foreign Minis­ similar to that of the Inter-AmericaflDia logue. ter Fernando Solana told the press that legalized drug con­ Moreno says, "Argentina shou�d follow the path of de­ sumption in the United States would help to discourage drug criminalizing drugs for consumption, because we all know trafficking. President Salinas de Gortari said to Time maga­ that sending a person to jail is just: sending them to another zine in early June that decriminalized drug consumption "is center of consumption." Moreno Ocampo told El Consultor a very delicate matter" and not something he would advocate de La SaLud that a bill proposing drugdecr iminalization will for Mexico. And yet, La Jornada's pro-legalization colum­ soon be introduced into the Argentine Congress. nist Miguel Angel Granados Chapa wrote June 6 that al­ though Salinas has "for the moment" rejected legalization, "we cannot close the debate on this issue." On June 16, fo rmer Finance Minister and ex-Ambassador to Washington Hugo B. Margain declaredthat "only a conti­ nental liberalization of drug consumption can eliminate the Bush's phonywar on bestial profits of the drug cartels." The leading Mexico City daily Excelsior devoted an editorial to urging legalization, drugs paved �e way with the proviso that the initiative must come from the United States. Support for legalization has also come from the Sali­ by Jeffrey Steinberg nas-linked Cardenista Front of National Reconstruction (PFCRN) and National Action Party (PAN), as well as from the Party of the Democratic Revolution (PRD). When Vice President George Bush �ode into the White House According to the bimonthly Argentine newspaper El in the November 1988 election on the coattails of his boss, Consultor de la Sa Iud, there is a campaign afoot to present President Ronald Reagan, he made the "war on drugs" one drug legalization as a viable option in Argentina, too. Yet of the main themes of his campaigd. Bush's "tough on crime, according to Dr. Juan Alberto Yaria, the secretary of Preven­ tough on drugs" campaign rhetori¢ was brought home to the tion and Rehabilitation of Addictions for Buenos Aires prov­ American voter through a stream o� Madison A venue attacks ince, who is interviewed by El Consultor April 23, legaliza- on his ultra-liberal opponent, Ma$sachusetts Governor Mi-

Feature 29 EIR July 30, 1993 chael Dukakis. Some of the most shamefully memorable of of hypocrisy that added furtl1er fuel to the fire. the Bush election propaganda ploys centered around the case i of Willie Horton, a Massachusetts convict who committed a The Bush track record I brutal rape while out of jail on a weekend furlough. In the early years ofthe Re�an presidency, George Bush Four years later, when President Bush ran for reelection, was appointed to spearhead tij.e administration's anti-drug his vaunted "war on drugs" was nowhere to be seen . effort . The vice president was �aced in charge ofthe Nation­ Throughout the 1992 Bush-Quayle reelection drive, not a al Narcotics Border InterdicMn System (NNBIS), a well­ word was spoken about the drug plague and the incumbent's funded effort advertised to seallAmerica' s borders fromdrug track record in combatting narcotics. And for good reason. smugglers. Instead of bringin, to bear the most advanced George Bush never had any intention of conducting a surveillance technologies and d�vising cooperative programs serious war on drugs. The tens of billions of dollars in taxpay­ with other nations of the hemis�here, which might have dras­ ers' money funneled into the Bush anti-drug effort was not tically reduced the flowof illeg�l narcotics across the nation's simply wasted. The Bush war on drugs, as EIR warned early borders, Bush chose to conceptrate nearly all the NNBIS on, was never intended to succeed. Whether President Bush resources on one entry point: tJiesouthern Flori da coast. personally sought to further the cause of drug legalization by The South Florida Task Force, as it came to be known, running a no-win effort is not clear. What is clear is that the did succeed in cutting off a go04 deal of cocaine and marijua­ advocates of drug legalization within the U. S. establishment na traffic into the south Florida ¥gion. However, the concen­ were ecstatic over his phony war on drugs. And in the wake of tration of forces in that one are� drained resources from other its abysmal failure, the climate was to be set for the eventual equally vulnerable border penetration points. The net effect: legalization of mind-destroying drugs. serious increases in the overalli flowof illegal narcotics into Both Bush's hypocritical anti-drug rhetoric and the pro­ the United States. While soudi Florida showed a marginal paganda of the drug legalizers were directed at the same decline in illegal drug infiltrati�n, southern California, New target: wearing down the resistance of the American peo­ York, New England, and the �ntire southwest border area ple-who still want the drug epidemic to be eradicated by were flooded with illegal impohed drugs. Caribbean smug­ competent and constitutional means. gling routes up from Colombia were abandoned in favor of the Pacific border region b�ween the United States and Bush: drug lobby's best asset Mexico. Countries along that r�ute- -like Venezuela, Pana­ Midway through the Bush presidency, the pro-drug lobby ma, Guatemala, and Mexico-found themselves faced with gathered for an internationalstrategy session in Washington, an invasion of narco-traffickersf D.C. On Nov . 3, 1990, at the Drug Policy Foundation's Today, even many serious �aw enforcement officialsare annual convention plenary session, Ira Glasser, executive convinced that drug interdicti�n is an impossible dream. director of the American Civil Liberties Union (ACLU) and Their reasoning? The Bush eff4>rtI , which poured billions of a longtime legalization advocate, gloated that Bush's failed dollars into interdiction, was a tfsounding flop, as evidenced anti-drug effort had put drug decriminalization back on the by the increasing flowsof illega/l drugs into the United States strategic agenda after having been severely discredited by every year over the past decadel efforts in the late 1970s, spearheaded by Lyndon LaRouche, I to defeat a string of marijuana decriminalization laws. Policing the ghetto, ignoring the bankers Glasser urged his listeners to steer a careful course, pass­ If the Bush-led border inter�iction program was a calcu­ ing off legalization as "drug reform" while harshly criticizing lated flop, the domestic war op. drugs was an even bigger the draconian police state measures directed against Ameri­ fiasco. By the last year of his prflsidency, Bush was funneling ca's urban poor that had been implemented by the Bush over $12 billion a year into the .,..,aron drugs. A good deal of administration under the guise of fightingdru gs. this was diverted to local law �forcement agencies, which Dr. Andrew Weill, a Drug Policy Foundation director, found themselves increasingly �sorbed into joint task forces predicted that the Bush administration's brutality against in­ with federal agencies like the F$I and the grug Enforcement ner-city minority residents could trigger civil warfare . (This Administration. These joint ta$k forces set their sights on prognosis was delivered 18 months before the Rodney small-fry traffickingorgan izatiqns, usually made up of black King case triggered stage-managed riots in Los Angeles and Hispanic dealers-ignoring the pivotal role of commer­ and in a dozen other cities.) Weill added that he welcomed cial financial institutions in lau�dering the drug profits. Un­ such civil unrest "because changes in lifestyle only occur der new mandatory sentencing gjuidelines steered through the when people are scared. A social catastrophe is needed Congress by the White Houseb hundreds of thousands of to force the present policies of the drug warriors to be inner-city young men and women were thrown into the prison abandoned." If "social catastrophe" was what the legalizers system for drug-related crimes. f3ythe time George Bush left needed to kick their drive into high gear, it was social office, one out of every four black males under the age of 25 catastrophe that Bush delivered-compounded by a degree had spent time in jail.

30 Feature EIR July 30, 1993 With each new drug bust and jailing, freshblood was drawn highest law enforcement post was I filled by a man who had into the drug dealing trade. The entire process was accelerated surrounded himself with drug-taint�d criminals. Henry Barr, during the pre-Christmas period of 1985 with the introduction one of Thornburgh's top aides froIllhis days as Pennsylvania of crack cocaine. Crack, a highly addictive form of cocaine governor, was forced to resign from the attorney general's . which can be manufactured with little technical skill, hit the personal staff when he was identifiedas a cocaine user and ghetto streets of America like a shock, as the result of a top­ dealer. Richard Guida, who had been chief criminal prosecu­ down marketing strategy by the executives of Dope, Inc. Soon, tor of Pennsylvania under Thornbulrgh, pleaded guilty to co­ violent street gangs, often linked to prison-based gangs, were caine trafficking, and pointed the fihgerat Barr. In late 1990, running the street-level crack trade. The spread of urban drug­ Gov. Bob Martinez of Florida, a Bush political crony who related violence only increased the focus of the Bush team upon had enjoyed the backing of suspec�ed drug traffickers in his thebottom of the drug traffickingpyra mid. As the prisons filled failed bid for reelection as govern

30. 1993 Feature 31 EIR July �TIillInternational

Russian nuclear missiles can still destroy the world

by EIR's Editors

While German television viewers watched in astonishment, the British-French policy of doing nothing to stop Serbian ag­ 20 ICBM hatches opened on board a Russian Typhoon-class gression in the Balkans. At th�t point, the Moscow imperial nuclear submarine, showing the nuclear missiles, each armed faction concluded that the We$t would do nothing to thwart with six MIRVed warheads. "With this submarine, I can de­ its plans. stroy the world," the ship's commander explained. He said it would take some 20 years for Russia to achieve democracy, but LaRouche's response in the meantime, he would hold the keys to the nuclear weap­ Lyndon LaRouche, in h�s weekly "EIR Talks with ons, and would follow whatever orders he were given. A Rus­ LaRouche" radio interview on,July 21, was asked by inter­ sian militaryman responsible for firingthe missiles said that in viewer Mel Klenetsky for his View of the situation. Here is the event of war, he would, of course, be killed, but this would his reply: only take a "nano-second," while the agony of the enemies of "This is something which I can assure people I know very Russia would be protracted in time. well. I forecast this as a likely possibility back in the spring The 45-minute documentary was jointly produced by a of 1983 if the SDI [Strategic :Defense Initiative 1 were not Franco-Russian television team, and was shown on Germa­ implemented. In June 1983, tQere were several things pub­ ny's ARD TV network on July 16. For the firsttime , western lished by me, after some wor� by my collaborators on this journalists had been allowed into the top-secret submarine study, during the month of May, warningthat it should have base at Murmansk. been obvious that since the 1960s, there was a change in The show's producers pointed out that the statements by progress in Russia, away froqI bolshevism, toward some­ the ship's commander were obviously intended as "psycho­ thing else. logical warfare," but that nevertheless facts are facts: Russia "I warned those who were very happy about this change is still a nuclear superpower. The producers also reported away from bolshevism around tile U. S. government(the CIA that a truck driver who worked on the ship, who reported and the National Security Council) that this was not as simple sensitive information to the TV crews about lapses in ship­ as they thought it was, and that what they were looking at, board security, died three days later. They speculated that he was a tum toward an old Russian matrix, the so-called Third may have been punished for opening his mouth in the way Rome matrix, which had dominated Moscow many times that he did. since the middle of the 15th qentury, but which had been This flamboyant display, orchestrated by Moscow, con­ official since about 1510. This is the idea that Moscow would firms what EIR has been reporting for some months: the become the capital of a Third Roman Empire. I said that the emergence of a faction in Moscow determined to reinstitute Russians would go through a period of crisis, and that if what a Russian Empire, a "Third Rome," with Moscow as its I proposed in connection with the SDI were not implemented, capital. This ominous development entered a new phase on we would see the collapse of communist Russia, but followed May 22, when President William Clinton signed on to the by a new Russian imperialism which would inevitably go

32 International EIR July 30, 1993 in the direction of ideas of people like Dostoevsky, to an definitepattern of Russian behavioIj, a patternthat I formerly Orthodox ideology-pivoted new Russian Empire, which was reluctant to believe existed. They have now begun a would develop an adversarial policy toward the western strategy based on the implantation of Russian enclaves out­ countries, more virulent, in many respects, than had been the side Russia. Stage one in their strategy is to define such case under communism. enclaves, whether it be in Estoni�, or eastern Ukraine, or "What we are seeing with that broadcast from the Ty­ Moldova. Stage two is to start linking them together. Stage phoon-class submarine and the statements of its commander, three is to gather unto Muscovy what Muscovy once had." is that the Russian ability to destroy the West, is true. Russia Such a "restorationist" push, he noted, made it credible today is a superpower. Each of these submarines has the that a new state could be formed, called Novorossia ("New capacity of hitting 120 different targets in its initial shot, Russia"), linking the enclave of Tr�s-Dniestr in Moldova to without reloads. There are numbers of these Typhoons and Russia itself via a network of "Russian enclaves" in Ukraine. there are other weapons. We can still have thermonuclear This idea was the theme of an articlein the London Econ­ World War III under certain conditions. omist of July 16, which reported on the growing militancy of "Look at what is happening inside Russia generally, par­ the hardline Russian commander irithe Trans-Dniestr, Gen. ticularly since Clinton backed down to the British monarchy­ Aleksandr Lebed. According to th� article, Lebed is trying French operation to protect the Serb operation in the Balkans. to forge an alliance with ethnic Riussians in three parts of "The Russians have now considered that the United Ukraine-Odessa, Crimea, and the! Donbass coal-mining re­ States is a paper tiger which may still have a little sting in its gion around Donetsk-in order to forma new state of Novo­ tail, but which is headed for a deep crisis, a deep economic rossia. crisis, in which the United States' sting in the tail will be lost. Our source also foresaw a very nastyRuss ian move to "Under those conditions, certain forces in Russia, with neutralize what Moscow claims to be a "Ukrainian nuclear the encouragement of some people in Britain, France, and threat": "The Russians will fixthe Ukrainians, they will not the United States, are moving to establish a post-Yeltsin tolerate this." Great Russian/Russian imperial power which will become According to the source, "The Europeans will close their adversarial, as it is already in the process of becoming so, to eyes to these developments. They will mouth words like the United States. This is a demonstration; and the film is a 'stability,' 'respectability,' 'demjx:racy,' to characterize shocking symptom. Russian moves that actually have Ikone of these characteris­ "Look at what is happening today along the border be­ tics. The Europeans won't, and can' t, do anything about this. tween Tajikistan and Afghanistan, where Russian forces are This is already shown by what they haven't done in response now moving in with hot pursuit operations across the border to Russian threats to the Baltic statts." into Afghanistan in reprisals for British-directed (and in part The growing strategic threat, and the westerninaction in American-directed) Afghani military excursions into Tajiki­ the face of it, was pointed out sharply in an editorial in the stan. We are now at the beginning of what could become influential French journal Le Monde Diplomatique in mid­ World War III, unless we come to our senses." July, under the headline "The Russian Volcano." Ignacio Ramonet complains that the West has been transfixed, for Will the West wake up in time? too long, by the power strugglesbetween Boris Yeltsin and While the leading political figures of the West are, in his opponents, as if this were the main issue confronting general, acting as though they were asleep at the helm, there Russia. In reality, the population is living in a "state of shock" are some who are beginning to sound the alarm. after the political earthquakes sinCe the fall of the Soviet An important inflection point was the vote on July 16 by Union. At this moment, Russia itself is rocked by "centrifu­ an enclave of native Russians in Narva, Estonia to support a gal, nationalist, and separatist" tr�nds. The majority of the referendum that would separate their region from Estonia population is faced with pauperizlltion, as prices of goods and affiliate it with Russia. Estonian Defense Minister Hans and services have multiplied by 26'times in a year. Revas, speaking from N arva to Swedish Radio as the referen­ In the face of all this, the West shows itself "stricken by dum was taking place, warnedthat "we are two years behind immobility," as was clearly evidenced by the totally inade­ the Balkans." He said he was sure war would break out, and quate response of the West to the Russian problem at the that there would be a "Balkanization of the Baltics." While Group of Seven summit in Tokyo. Concludes Ramonet: "The this might not happen immediately, it would happen, at the egoistical West seems, yet again,! incapable of forecasting latest, in his view, within one year. the nonetheless foreseeable firesthat threaten to engulf Rus­ In a discussion with EIR on the significanceof the Estoni­ sia, and which threaten to underminethe pursuit of democra­ an referendum, a well-informed European expert on Russian cy in this country, and to put in danger the security of the affairs described Moscow's strategy as "to gather unto Mus­ world. Why does the western wodd remain so deaf to the covy what Muscovy once had." The source continued: "I jolts, the rumblings, and the detonations which announce the have an assembly of evidence which shows that there is a imminent explosion of the Russian volcano?"

International 33 EIR July 30, 1993 The Russo-Tajik agreement its and politicalef fects on CentralAsi a by M. Babur

On July 15, the Russian Parliament ratifieda Russian-Tajik agreement with the Russian F�eration offered the country a Agreement onfriendship, cooperation, and mutual aid which real chance of saving itself froIJ!limpending disaster and from had been signed in the Kremlin on May 25. Up to the point the destruction of its native population. One must remember of the signing, little mention had been made in the Russian that, at the time of the signing, there was no civil peace. or international press about this agreement. In the article In some areas , especially the iPamirs, battles raged pitting that fo llows, M. Babur provides crucial background on the government forces against both the "Democratic-Islamic" circumstances of the agreement, as seen from Moscow by a opposition, supported by the Afghan mujahedin, and detach­ veteran Russian observer and writer on Central Asian and ments of fighters, recruited mainly by force in the Tajik Oriental affairs who has had fivedecades experience in the refugee camps in the Afghani border provinces of Balkh, field. Kunduz, Samangan, and Takh¥, where they receive defense The ratification occurred soon after the well-publicized training from Afghan and foreign specialists working for incident of July II, in which Border Post No. 12 along the fundamentalist groups in Afghlj.nistan. One must also bear in Afghan-Taj ik border was attacked from two directions, the mind, that as a result of the ciyil war and natural disasters, main attack mounted across the Pyandzh River by armed upwards of 150,000 homes aqd 80% of all businesses had 400 refugees supported by soldiers of the 55th InfantryDivision been burnt or reduced to rubbl�. In autumn 1992, only one­ ofthe Afghan Army. The attacks resulted in the deaths of 25 seventh of the cotton harvest was brought in. The damage Russian border guards, after two days of heavy fighting. inflicted on the republic's econpmy, transport, and housing, Immediately thereafter, Russian Defense Minister Pavel was put at 350 billion rubles. Grachev and Deputy Defense Minister Konstantin Kobets During the signing of the agreement, Rakhmonov said: rushed to the combat zone, and ordered heavy reprisals. "The presence of the 201 st RU$sian Division in Tajikistan is To enforce this, President Boris Yeltsin, acting on Defense a guarantee of peace. If it had not been here, the number of Ministry recommendations, immediately dispatched thou­ people killed would have bee, not thousands, but about a sands of Russian troop reinforcements, plus combat aircraft million." This was no exagger�tion. Indeed, he added: "If it and attack helicop ters, to the border area. had not been for Russia and Boris Yeltsin personally . . . M. Babur's analysis fo llows: Tajikistan would already have (:easedto exist." This is not to say that the efforts ofEmomali Rakhmonov On May 25 in the Kremlin, President of the Russian Federa­ and Prime Minister Abdulmalik Abullodzhanov have been tion Boris Yeltsin and Chairman of the Supreme Soviet of unanimously supported in Tajikistan. The Russian newspa­ Tajikistan E. Rakhmonov signed an agreement on friendship, per Moskovsky Novosty someqow came across a copy of a cooperation, and mutual aid between the Russian Federation secret letter to Yeltsin from th� leaders of the Tajik opposi­ and the Republic of Tajikistan. At the same time, a package tion, and published it, literally! on the eve of the signing of of seven documents was signed, providing for official Rus­ the agreement (issue No. 22, datedMay 23-30). In this letter, sian and Tajik institutions to collaborate militarily and eco­ the opposition strongly protesteP against Russia's support for nomically, as well in the defense of the state border. These the current leadership in Tajikis�an, where all kinds of murder documents, and the agreement in particular, are of extreme and torture were going on. Meskovsky Novosty considered political and strategic importance for both states, and for the the letter so important, that it, printed it on its front page, other countries of Central Asia and the Middle East. together with a photograph shqwing how terrible conditions Given the dire political, social, economic, and military are for Tajik refugees in Afghanistan. situation that Tajikistan found itself in-after a year of bloody civil war; after the deaths of over 60,000 of its people 'Outdoing Goebbels' and the exodus of another 250,000 to Uzbekistan, Kyrgyz­ However, even in the Tajlk government there was no stan, Russia, and (especially dangerous) Afghanistan; and unanimity over the question o� an alliance with Russia. On after a series of serious earthquakes and floods-signing an May 19, the official organ of the;Communist Party of Tajikis-

34 International EIR July 30, 1993 Keldash Madrasah, a Musqm monument in Tashkent, the capital of uzbdkistan. It was in Tashkent that CIS leadJrs signed an Agre�ment on Collective Security in May 1992, and taders in Tashkent are monitoring the situation in neighboring Taji�istan now with considerable worry.

tan, which is still the only legally operating political organi­ ry . The Russian Ministry of DefenseI newspaper Red Star zation in the republic, published, in issue No. 20, an article published on May 27 an article entitled "Russia and Tajiki- titled "Outdoing Goebbels." In it, the Russian government stan Are Back Together Again," wHich gave an extremely was called a "criminal clique" and "followers of Goebbels." positive assessment of the agreement between the two sover­ Referring to the clashes in Moscow on May I, and to the eign states and emphasized that "th agreement stipulates a Russian Pr esident's conduct during the collapse of the joint policy on defense and milita technology, including U.S.S.R., the author of the piece, A. Ziborov, even said: financing military programs and buying arms. If an act of "Yeltsin has betrayed his presidential oath and should be put aggression is committed ,against ode of the parties to the before a court." Similarly, in recent months, the Voice of agreement, the,other.will offer the nedessary assistance." The Tajikistan and other Tajik government papers (all. newspa­ article pointed out that the agreeme t provides for keeping pers there are governmentones) had conducted a bitter cam­ Russian armed forces on the territ0ry of Tajikistan for a oss abuses of transitional period, while focusing kttention on the border paign against the Russian press for reporting gr I human rights and democratic freedoms in Tajikistan. problems: "The agreement says that or a transitional period, So the Tajik opposition, which maintained its positions and until Tajikistan has its own border troops, it is delegating in the Pamirs and isolated border areas, together with the. the .right to guard its borders and t�ose of Russia and the underground groups in the cities and towns, criticized the Community of Independent States (tIS), to Russian border Russian government for signing the agreement and sending troops." It is quite specific,though , trat "the Russian border more troops, charging that this would shore up the govern­ troops will carry out their duties in accordance with agree­ ment of Rakhmonov-Abullodzhanov. Meanwhile, the Com­ ments with neighboring Afghanistan and China, which re- munists supported the latter 's domestic policy, but at the main in force." same time echoed the slogans of the Russian Front for N ation­ Third, the agreement guarantees Ithe inviolability of Taji­ al Salvation, and criticized their leaders for signing an agree­ kistan's borders. During the signin�, Yeltsin remarked that ment with the "followers of Goebbels in the Kremlin." the borders of Tajikistan, which are �imultaneously the bor­ ders of the CIS, must be guarded through their joint efforts. Russia's national interests "Especially," he emphasized, "because Afghanistan is not There can be no doubt that the agreement signed in the indifferent to Tajikistan, I mean tenftorially speaking." So, Kremlin on May 25 is very important from the point of view true to the commitments it enteredJ into in the Agreement of Russia's national interests. on Collective Security signed by the leaders of the CIS in First, it sets the scene for preventing two potential war Tashkent in May 1992, Russia had taken responsibility to zones-Tajikistan and Afghanistan-from merging into defend the borders of the states of Central Asia and prevent one. It therefore averts the danger of a massive conflictthat terrorists, arms, and drugs from fidding their way through would undoubtedly have spread across a large part of Central the CIS into the countries of EuroJe. All of this indicates Asia and the Middle East. that the agreement of May 25, 19931 had increased Russia's Second, the agreement strengthens Russia's military and authority in the Russian Federation andCIS , and particularly political positions along the Amudar'ya and Pyandzh rivers, among the Central Asian states. I thus creating the conditions for preventing fighters and arms Fourth, the agreement improved the situation for Rus­ from being infiltrated from Afghan territory into Tajik territo- sians inside Tajikistan, who haye bden in an extremely dan-

EIR July 30, 1993 International 35 gerous position during the civil war and have often been and before that had served i the Russian Army in � 40th persecuted. Over 150,000 Russians were forced to leave the Afghanistan. He arrangedfor a �elicopter regiment stationed republic, and this not only turned them into refugees, but in Kagan (near Bokhara) to be tJlansferredto Tajik command. also deprived Tajikistan of highly qualifiedpersonnel it badly The facts about Uzbek armedi �volvement in the civil warin needed. In his Kremlin speech, Yeltsin made a point of refer­ Tajikistan were published by �he Nezavisimaya Gazeta on ring to the problem of the Russians in Tajikistan and ex­ Feb. 23, 1993 in a piece entitl� "Uzbek Aircraft Bomb the pressed the hope that now their situation would improve. Tajik Opposition." i

A second Afghanistan? Leninabad mafia ! However, some sections of Russian public opinion have In Tashkent, of course, th� situation in Tajikistan has been seriously worried about the implications of the agree­ been carefully monitored. In a Ipress conference for foreign ment. On May 27, Nezavisimaya Gazeta published an article journalists back in May 1992, Rresident Islam Karimovkept headlined, "Is Russia Being Drawn into Another Unneces­ returningto the subject. He aC$sed then-President Rahman sary War? The Agreement with Dushanbe Could Tum into a Nabiyev, who has since died, oi1reducing the people to pover­ Second Afghanistan." The article continues: "Russian mili­ ty. In answer to a question about the inhabitants of Leninabad tary figures consider that the situation in Tajikistan risks Oblast in Tajikistan wanting to setup an autonomous territory becoming a carbon copy of Afghanistan, with Russian troops inside Uzbekistan, Karimov said that the oblast (region) was in the valleys and partisans, some of whom are Afghans, in basically peopled by Uzbeks, Vtfho wanted to become partof the mountains. Russia's war with Afghanistan shows what Uzbekistan. He stated firmly, �owever, that "to talk about would happen. Having signed a document for joint military borders in the currentsit uation would be to tear Central Asia action, Russia is being drawn more and more into another war apart." Many newspapers used this statement as the headline that is totally alien to it." Moreover, the article concluded, the for their report of the whole interview. The reference to signing of the agreement would strengthen the position of the Leninabad Oblast, which is the largest region in Tajikistan Tajik government, which would hardly improve the state of and until the beginning of the civil war used to supply the human rights in the republic. party and state apparatus with k�y personnel (so much so that Radio Teheran and a number of other eastern radio sta­ people used to say "Leninabad runs Tajikistan"), is rather tions pointed out that the Russo-Tajik Agreement of May 25 interesting. Leninabad Oblast is the most fertile and densely was not received with much enthusiasm in Tashkent, the populated part of Tajikistan, and occupies a vital strategic capital of Tajikistan's neighbor Uzbekistan. The President of position on the approaches to the Fergana Valley bordering Uzbekistan, Islam Karimov, was extremely displeased with Kyrgyzstan. Its center, which :was recently given back its Rakhmonov's statement in the Kremlin, that "if it had not ancient name of Khodzhent, w�s known for 2,500 years as been for Russia and Boris Yeltsin personally, there would be one of the largest transfer points on the famous "Silk Road." no Uzbekistan and no Islam Karimov either, and Tajikistan From 1917 to 1929, Leninabadl and its environs formed part would already have ceased to exist." After all, this was said of Uzbekistan, and it was only after the formation of the by the same chairman of the Supreme Council of Tajikistan Tajik Soviet Socialist Republio that they were handed over who, in November 1992, as he was being elected at a session to the young republic at its insistence. As compensation, of the Supreme Council in Khodzhent, called Karimov the the Uzbek S.S.R. retained Samlrrkandand BokharaOblasts , "father of all the Tajiks"! which were mainly populated by Tajiks, who insisted, right Indeed, the Uzbek leadership and Karimov in particular up until 1992, that they should be handed over to Tajikistan. have done a great deal to help smash the "Democratic-Islam­ Thus, there are territorial differences between the two repub­ ic" opposition in Tajikistan and to bring Rakhmonov and lics. Moreover, about a million Uzbeks live in Tajikistan, Abdullodzhanov to power in Dushanbe. According to reports and approximately the same number of Tajiks in Uzbekistan. in the Russian press, especially Nezavisimaya Gazeta, Ros­ With all of this, as well as e�nts in Afghanistan, in mind, siskiya Vesti, Izvestia, and Novoye Vremya, at the end of Karimov announced in the interview that Russia should be­ 1992, the U zbek high command put a large quantity of arms come guarantor of the security of the Central Asian republics. at the disposal of the Tajik leadership, including field guns He also stressed that "Tajikistlan is an inalienable part of and twenty T-62 tanks, followed by an entire armored unit Central Asia, and there are ab$olutely no grounds for sug­ that had previously served in Afghanistan and was then sta­ gesting that it could suddenly! come within the sphere of tioned in Termez. Moreover, the Tajik Armed Forces and influenceor under the protection of the mujahedin of Afghan­ units of the Popular Front fighting the opposition included istan." quite a few Uzbek advisers. Uzbekistan began to play a more In an interview that he gave to foreign correspondents active part in events in Tajikistan after the appointment, as 10 months later, on March 12� 1993 , and which has been Tajikistan's defense minister, of A. Shisklyannikov, who published in full only in Tashkent newspapers, Karimov said had previously worked in the Uzbek Ministry of Defense, he was extremely worried by the situation in Tajikistan. He

36 International July EIR 30, 1993 confirmed that Uzbekistan had given active assistance to the article by the two officials from the Russian Foreign Trade legitimate rulers of the republic, on the basis of the Agree­ Ministry . The letter, which was longer than the original ment on Collective Security signed in May 1992, and the newspaper article, concluded: "Th� publication of this article Tajik-Uzbek treaty of friendship and cooperation signed in a day before the heads of state anti heads of government of January 1993 . However, he pointed out, whereas the interna­ the CIS met in Moscow [May 14]to discuss the question of tional community was devoting an enormous amount of at­ setting up an economic union, w� politically provocative, a tention to the situation in Bosnia-Hercegovina, it seemed blatant attempt to stir things up and set the leaders of the CIS totally uninterested in the Tajik tragedy . He referred to Af­ countries against one another. " In a footnote to the letter, the ghanistan's role in events in Tajikistan, and to the fact that editor of Nezavisimaya Gazeta offered his apologies, which . 1 there were more than half a million members of various IS an extreme I y rare occurrence. military units in Afghanistan, equipped with the most up-to­ In Tashkent, however, they are not only unhappy about date weapons, and continued: "Someone wants Afghanistan the Russo-Tajik Agreement. Immediately after the meeting in to be a kind of smoldering fire, from which embers can be Moscow of the heads of government of the CIS, the Tashkent plucked and cast into the independent states of Central Asia, newspaperNarodnoye Slovo, whicb is the organ of the Supreme and pressure put on them. It is no secret that certain dark Council and government of Uzbekistan, published an article forces cherish such dreams ....In Afghanistan, Pakistani headlined "Sudden U-turns Resemble Revolutions: They End and Iranian groups of terrorists are being trained to carry out in Tears ," which was signed by the Uzbek Information Agency. subversive activity in our region." In conclusion, Karimov At the center ofthe article was an attack on Nursultan Nazarbay­ repeated his view that Russia must become the guarantor of ev, the President of Kazakhstan, fot allegedly attempting at the security in Central Asia, but he stressed that the sovereignty Moscow meeting to revive the Soviet Union! of each republic must be strictly maintained. Clearly, the Russo-Tajik Agreement on friendship, coop­ Central Asia split looming? eration, and mutual aid (the last point was absent from the Nazarbayev , of course, is a figure whose authority ex­ U zbek- Tajik friendship treaty), in combination with the Tajik tends far beyond the borders of �entral Asia. In an article leaders' statements in the Kremlin, have led to a certain entitled "Integration Not in the Catds: Anti-Nazarbayev Arti­ wariness in Tashkent, as a number of radio stations in the cle in Uzbek Newspaper ConfiIllls Presence of Differences East (especially Iran) have suggested. To this must be added Between Regional Leaders," Nemvisimaya Gazeta of May the provocative and ambivalent article entitled "Asian Gas 28 commented on this attack onl him: "A political split is Will Go to the West: The New Alliance Will Harm Russia's obviously opening up inside Central Asia. . . . Kazakhstan Interests," by two responsible officialsfrom the Russian Min­ and Kyrgyzstan are leaning towwd democracy and market istry of Foreign Trade, published in Nezavisimaya Gazeta on reforms, whilst Uzbekistan and the somewhat kindred politi­ May 13, 1993. This stated that a Central Asian Regional cal regime in Tajikistan are blatantly trying to preserve the Union was going to be formed by forces allegedly believing features of Soviet totalitarianism, Iflavoring' it with a nation­ in a Greater Turkestan, who intended to include in it not al revival." This was Nezavisimay,aGazet a's revenge for the only the five republics of Central Asia, but also the Muslim trouble it had with its article, "Asian Gas Will Go to the republics that are part of the Russian Federation. It was West." It was also expressing its diispleasure at the Kremlin's claimed that the scenario for the Osh tragedy in Kyrgyzia support for the governmentof Ral¢monov-Abdullodzhanov, in 1990 [in which ethnic Uzbeks living in Kyrgyzia were and warning of a split amongst the leaders of Central Asia, attacked] was worked out in Tashkent, with the aid of the at a time when the fundamentalistl threat was increasing, and Turkish secret service; that the leader of the Afghan Uzbeks, the civil war in Tajikistan fanned Ifrom Afghan territory was A. Dostum, was receiving great support from Uzbekistan still burning. and Turkey; and that the leaders of the planned Central Asian Meanwhile, the bloody, drawn-out conflict among the Regional Union (by implication, principally Uzbekistan) had leaders of the mujahedin in Afghanistan has been settled for far-reaching designs against the "Persian-speaking bloc" the time being, by an agreemenlt in Jalalabad on May 20 (Iran, Afghanistan, and Tajikistan) and presented a serious among the leaders of the warring factions. The popular Min­ threat to Russia's economic and strategic interests. All this ister of Defense Ahmad Shah Masoud, who is a Tajik by was published less than a fortnight before the signature of the nationality and supports a politic�l settlement in Tajikistan, Russo-Tajik Agreement! is also to retire . A government ,as finally been formed in Kabul headed by the leader of thel"Islamic Party of Afghani­ Uzbek indignation stan," G. Hekmatyar, who is welI-known for his support of On May 25, i.e., the day when the agreement was signed, the Tajiks who are fightingtheir gpvernment. All of this does the editor of Nezavisimaya Gazeta published a long letter not bode well for peace on the banks of the Amudar'ya, and from the Embassy of Uzbekistan's press office, expressing it indicates the importance and timeliness of the May 25, indigation at the attacks and wild claims contained in the 1993 agreement.

EIR July 30, 1993 International 37 Iraq three years after thewar : genocide in a test tube by Muriel Mirak-Weissbach

On July 16, the Food and Agriculture Organization (FAO) bring the North Sea Brent price down $5. A Gulf study, and the W orId Food Program issued a paper reporting on the published in the United Arab Emirates Oil Ministrymagazine findings which a mission of the two U.N. organizations had Oil and IndustryNews, worried 1hat Gulf states' oil earnings completed in Iraq. "The vast majority of the Iraqi population projected at $81.3 billion in 1993, compared with $77.2 lives in absolutely deplorable conditions," it read, and is billion in 1992, "could decline in case Iraq is allowed to condemned to "a struggle for survival." The country as a resume production." whole is in a "pre-famine" situation. The mission estimates Furthermore, in the negotiations on U.N. Resolutions that, in order to feed its population, Iraq would have to import 706 and 712, which reopened Juiy 7, Iraq demanded that the 5.4 million tons of basic foodstuffs , at a cost of $2.5 billion. oil exports be shipped through ! the northern Persian Gulf "This significant sum cannot be covered by the international terminal of Mina Al Bakr, and nbt only through the Turkish community," the report comments tersely. pipeline, as the U.N. desires. Baghdad demanded, in addi­ Translated into plain English, the report says that a coun­ tion, that it be allowed to sell tnore than the $1.6 billion try of 18 million people, as a result of its having been subject­ worth of oil, and that it be able to lisethe $4-6 billion in frozen ed to three years of a hostile blockade, is about to enter assets abroad for purchase of £Pod and medical supplies. the spiral of starvation. Because the U.N. Security Council Regardless of the outcome of�the talks on a one-shot sale, reiterated on July 22 its commitment to uphold the embargo, U.N. policy is that the sanctions will remain in place. No Iraq will not be able to sell oil or any other commodity to any matter that the original condition set with the U. N. resolution trade partners . Therefore , although food and medicine are introducing sanctions on Aug. 6, "1990, that Iraq withdraw officially excluded from the embargo, Iraq will not be al­ from Kuwait, has been met. Since the end of the military lowed to generate the income which it requires to finance confrontation, ever more onerous conditions have been in­ food purchases. The "international community," which, vented to justify the continuing blockade: Saddam Hussein translated from bureaucratese, means the United Nations, was to "step down"; Iraq was to r'fulfillall the U.N. resolu­ is bankrupt and will not put up the funds for humanitarian tions," even as new ones were being formulated and rammed shipments. Even those deliveries of food and medicine which through; Saddam Hussein was ;to "behave," to eliminate have been authorized by the U.N. Sanctions Committee, weapons of mass destruction, to allowlong-term surveillance have been subjected to systematic harassment, or even pira­ of industrial activity, and so on. Most Americans, whose cy, by the fleet of "sanctions enforcers" stationed in the Red whims are periodically shaped by the public opinion polls, Sea. The U.S .-led multinational force has intercepted 17,000 express their feeling that the sanctions are "right" because ships, boarded and searched 5,000, and has diverted at least Saddam Hussein is a "bully," a '�dictator," "intractable," or 400, according to U. S. Central Command data, since August simply, still in power. 1990. The toll of the embargo The cynical politics of oil The Iraqi people are being subjected to genocide of a A compromise formula elaborated by the U.N. has been unique type. It can be compared to the same processes un­ tossed back and forth across the negotiating table since Sep­ leashed by financialspeculat ion, liIsury, and austerity, associ­ tember 1991, whereby Iraq would be allowed to sell $1.6 ated with the International Monetary Fund (IMF), for exam­ billion worth of oil, solely to finance such imports (after ple, processes which have led over 10 or 20 years, in the having given about half to the U.N. for its excellent services cases of Ibero-America and Africa, to genocidal conditions. on the ground and for reparations to the cash-strapped Ku­ The difference is that in Iraq's case, this process has been waitis); but even this trick, meant to fill the U.N.'s empty put into motion by military attack, which knocked out the coffers , might have undesired effects on the price of oil. economic infrastructure, followed by economic strangula­ Already in June, the mere rumor that the sanctions might be tion, which is killing the popUlation, undermining its ability lifted, allowing Iraq to start pumping oil again, sufficed to to reproduce itself. In Iraq, the drama is unfolding at a highly

38 International EIR July 30, 1993 An infantformula fa ctory destroyed in Iraq during the war. According to an unpublished cited UNICEF report, "more than 100,000 additional children (above expected rates) have died since the beginning of the Gulf war." accelerated tempo. The destruction which it has taken the . Food prices skyrocketed. The same report calculates that IMF one or two decades to accomplish in most Third World the market price for a food basket f 3,000 kcal per person countries has been wrought in Iraq in three years. for a family of six rose from 50qp Iraqi dinars in January How this happened is straightforward: The embargo 1991 to 1,000 dinars in January 1992, and to 2,500 dinars in stopped all air traffic to and from the country, leaving one January 1933. In the same period, ttie average monthly salary main land route through Jordan as the connectiori to the out­ rose only from 250 dinars to underl5oo. Thus, "Food prices side world. It grounded the entire civilian airplane fleet. have increased by more than 50-fold since August 1990, Trade was halted, except for medicines; even food was not while salaries have risen by only 1 2 fold," according to the allowed in until March 22, 1991. Food became scarce in a report. In addition to the devaluation of the currencydue to 1l country which had used its oil revenues to import 70% of the cancellation of trade-Whereb)l the Iraqi dinar no longer its food needs. Despite deliberate increases in internal food was recognized abroad-financial l speculation targeted the production by bringing more land under cultivation, which dinar. Since Iraq could not import, it produced its own bank­ increased the 1991 wheat acreage planted by 80%, the embar­ notes, with the result that foreign Ispeculators hoarded for­ go limited this by blocking imports of fertilizer, seed, and eign-produced 25-dinar notes, and traded them outside the spare parts for agricultural vehicles. According to an unpub­ country. This drove down the valu6 of the domestically pro­ lished report for Unicef written in April 1993, this meant that duced banknotes, further eroding I buying power, until the the harvest was reduced "to an estimated 25-30% of the government in May 1993 declared the foreign-made notes previous year's level." null and void, and closed the bordbr to Jordan temporarily, Agriculture was further damaged by reduced irrigation, to reestablish control over currenc�. due to irregular electricity supplies. The predominantly ag­ The combination of monetary tlevaluation and scarcity­ ricultural economy in the northern Kurdish region has been induced inflation of basic goods p+ces has resulted in a fall decimated by "acute shortage of certified seeds, fertilizers, in per capita income. According to the unpublished Unicef herbicides, pesticides and fuel." The lack of veterinary ser­ report, "Per capita income was eJtimated at $335 in 1988 1 vices and supplies has led to epidemic among herds, includ­ (using the free market exchange rate) and fell to $65 in 1991 , ing rinderpest. Lack of feed and electricity have virtually and $44 in 1992. This is far below1 the internationalpoverty eliminated poultry and dairy production. In Erbil, out of 300 line of $100 established by the World Bank. Dreze and Gaz­ functioning poultry farms in 1990, only two remain. dar (' Hunger and Poverty in Iraq,' 1991) found that, in terms

EIR July' 30, 1993 International 39 of private income, the prevalence of poverty is now greater supplies have been contaminated, leading to the rapid spread in Iraq than in India, with the majority of Iraqi households of infectious diseases. Although in 1992, the government earningbelow the poverty line." In 1988, only half of family made significant progress in repairing water and sanitation income was used for food purchases, but by 1993, every installations, the often makeshift repairs could not endure dinar was needed for food , and that does not suffice. Except without new spare parts. Prevented by the embargo from for the tiny percentage of very wealthy Iraqis, the population receiving spare parts, the water *ystems have broken down. depends on food rations, which provide 1 ,550 kcals per day "In Basra, a visit by Unicef in J�uary 1993 revealed that of per person, or about two-thirds of daily energy requirements. 135 sewage pumps, only 25 wer� operational. Of the 27,000 liters of sewage pumped into thd Tigris River every second, Effects on the population 17,000 are discharged untreate�. The team found that gar­ To make up the difference between rations and real bage collection services had vir(ually collapsed due to lack needs, families are forced to seek any kind of income-gener­ of spare parts and vehicles. O�erflow of raw sewage had ating activity for purchases on the black market. In the first caused flooding in many residential areas." year after the war, reports abounded of wealthy and middle­ If the physical toll of the embargo can be calculated in class women selling jewelry and dowry items for cash, to crude percentages, the psychological cost is far moredifficult cover bare necessities. This cushion is largely gone. As a to express. One indicator is a poll taken in 1992 among result, thousands have been forced to enter the illegal econo­ primary schoolchildren, which recorded the highest levels of my . The London Financial Times on May 6 reported on the psychological stress and patholo$ical behavior ever set down common sight of Iraqi women sitting on the curbstones in by specialists, in a decade of $uch investigation in areas Jordan's capital Amman, selling black market cigarettes. To marred by conflict. According tp this report by Raundalen do so, they must travel 14-17 hours by car or bus from Bagh­ and Dyregrov, 62% of the children questioned answered af­ dad to Amman every couple of weeks. Other women have firmatively to the question, "Dp you worry you may not resorted to prostitution. Inside Iraq, child labor, once un­ live to be an adult?" Seventy-niriepercent said "yes," when heard of, has become commonplace, and school dropouts, asked, "Are you afraid of losing �our family?" particularly among girls from f. 1ilies headed by a widowed A vast majority of women qu�stioned also indicated psy­ mother, have increased correspondingly. Ministry of Educa­ chological problems, ranging from insomnia to headaches tion statistics cited by the Unicef :, port indicate that 2.5% of and depression. students dropped out of primary school in 1989-90, 3% in In August 1991, a task force headed by Sadruddin Aga 1990-91, but 14% in 1991-92. Street children, who did not Khan, who was Executive Delegate for the United Nations exist before the war, have appeared, tspecially in the cities, secretary general at the time, in charge of humanitarian aid begging. to Iraq, concluded that unless some arrangement were made The impact of pauperization and insufficient caloric in­ to allow Iraq to generate income with which to purchase food take has been massive on the physical and psychological and medicine, the country would enter a dramatic crisis. The condition of the population. First, in outright mortality, the U.N. official said that what was threatened was a process cited Unicef report calculates that "more than 100,000 addi­ which, if not reversed, would lead to famine. Now, in 1993, tional children (above expected rates) have died since the that specter of famine has appearedon the horizon. Over the beginning of the Gulf war." The International Study Team last three years, the Iraqi popUlation has been progressively estimated that mortality rates for infants and children under stripped of its ability to produce. Physically, its resistance has fivewere 2.4 and 2.7 times their pre-war levels, respectively. been undermined by malnutrition, and in physical-economic Infant mortality begins at birth or before . Due to dramatically terms, its ability to reproduce itself is being threatened. Now reduced medical services since the embargo, pre-natal care it may starve, as the FAO admits. has suffered. Increases in miscarriages, abortions, premature Yet, in 1988, Iraq was ranked as a relatively wealthy births, and low-birth weight babies are the result. The per­ country. Its average caloric food intake was 3,340 kcal, well centage of babies born below 2.5 kilograms rose from 4.5% over the allowance recommended by the World Health Orga­ in 1990 to 10.8% in 1991 and to 16.8% in 1992, according nization. Iraq was a take-off economy, about to enter a fully to a study presented at an international conference in Bagh­ industrialized stage of its development. dad in 1992. In addition, the lack of general anesthetics led Despite a moral resistance that defiescompari son, which to massive increases in deaths of both mother and child, has been shown by the Iraqis since 1990, it is clear that the particularly in cases where the mother required a caesarean only way that the country will survive and its people flourish, section. is through the lifting of the genocidal embargo. Whether or The rise in infant and under-five mortality derives also not the U.S. administration prefers a healthy, growing Iraqi from malnutrition, diarrhea, infectious diseases like cholera, economy and people, or another moral catastrophe to chalk typhoid, and measles. Vaccines have been blocked by the up to foreign policy failures, will be seen in the attitude it embargo, as have medicines required for treatment. Water assumes vis-a-vis this horrendous human drama.

40 International EIR July 30, 1993 Italy challenges 'new world disorder' in Somalia by Claudio Celani

I On July 12, an obscure Vnited Nations official, Kofi Annan, is weaker. Therefore, when we were strong we made peace. took the unprecedented step of ordering the government of a Now that we are weaker, we make :war." NATO country, Italy, to recall the field commander of its mili­ The allegation of having pullecJout V.S. forces without contingent in Somalia, BrunoLoi , because he was gUilty finishing the job of disarming rival bands is shared by interna­ tary of "disobeying V.N. orders." The Italian government, with tional commentators, who name this as one of the main rea­ wounded pride, firmlyrej ected what ForeignMinister Beniami­ sons for the present escalation of the conflictin Somalia. But no Andreatta called a "diktat," thus opening the most serious the Italians have even more reason to complain about V.N.­ crisis between Italy and the Vnited States since 1985, the time V.S. conduct. At the beginning ofthe Restore Hope opera­ of the terroristhijacking of the lUXUry ship Achille Lauro. tion, the V.N.-V.S. indicated that they preferred General The conflictis not only a question of sovereignty between Aideed as their interlocutor. Then, }Vithout explanation, they the Italian national government and the V.N. supranational dropped him in favor of Ali Mahdi. Suddenly, Aideed be­ authorities; given that orders in Somalia are formally given came "Public Enemy Number One.�' Despite this about-face, by the V.N., but in reality by retired V.S. Navy Adm. Jona­ Italian commander Bruno Loi twice offered to capture than T. Howe, the policy conflictis between the Italian line Aideed, since the Italians were abJe to pinpoint his where­ of a dialogue with Somali leaders, opposed to a policy of abouts, thanks to their wide intellig�nce networks. Inexplica­ indiscriminate bombing of the civilian population, such as bly, the V.N. command refused the offer. V.S. forces demonstrated on July 12 by killing 78 people in Then came the episode which escalated the violence. the action supposedly aimed at capturing warlord Moham­ On June 5, after having rejected t�e Italian offer to capture med Aideed. Aideed, and not even having issufld a warrant against him, The crisis between Italy and the V.N.-U.S. "has enor­ the V.N. command sent Pakistani nroops to search a weapons mous ramifications," the Baltimore Sun recognized on July depot in the headquarters of Aideep'sradio station. During 18. At stake, the paper correctly observed, is the "authority­ that search, the V.N. troops reaqted to a provocation by make that sovereignty-[V.N. member states] are willing to opening fire against a group of civ�lians. It was a massacre, relinquish to a V.N. military command that has yet to attain with 23 dead on the side of the V.N. Had the Italian troops the capability of a quick response." The reality is that there not intervened, thanks to their goop relations with the local exists a deep contradiction between the V. N. stated goals (in population, losses would have been bigger. the case of the Restore Hope operation, feeding the Somali On July 3, a column of 800 iltalian paratroopers was population and preventing the total disintegration of the ambushed during a similar search operation. Despite the vio­ country) and the real V. N. policy, which promotes the disin­ lent fire(Somali fighters used anti-t�k weapons), the Italians tegration of national structures. refused to return fireon women an� children who were hug­ This contradiction exploded when the Italian contingent ging Kalashnikov machine-guns Imd throwing hand gre­ (the second biggest after the Pakistanis, but much better nades. As a result, they left thre� dead and 23 wounded. equipped and more effective) realized that the V.N.-V.S. While the ambush apparently seem�d to challenge the Italian policy was delivering the situation into the hands of those strategy of avoiding conflicts by elStablishing friendly rela­ same warlords whom they ostensibly were fighting. tions with the local population, Italian commanders insisted As Gen. Domenico Corcione, the Italian defense chief of that it was the result of the escalation provoked by the violent staff, declared on July 16, "A peace mission is turninginto a behavior of Pakistani and V.S. troqps on June 5. To demon­ war operation. And we don't like it anymore." "When we strate their point, the Italians annou�ced that they would take arrived there," Corcione explained, "there were 28,000 back the lost checkpoint without filting a shot. Americans, and we had food to distribute, potentially a On July 11, they did just that. But only 24 hours later, source of strong pressure. There were conditions to impose V. S. forces began bombing a Mog�dishu district where lead­ disarmament. Instead, the task of feeding the population was ers of the Aideed faction were meet!ing. As a result of the 17- fulfilled, but disarmament was neglected. Now the machine minute bombardment, 78 died, many of them civilians. This

July 30, 1993 International 41 EIR ignited a popular uprising, in which four western journalists national hero), and is motivated by several factors. One of were stoned. That same evening, U.N. vice-director Kofi these is the very open criticism �gainst the Anglo-Americans Annan announced arrogantly that Italian commander Bruno coming from the Catholic Chutch. On July 4, the Vatican Loi had become persona non grata, because he had consis­ newspaper Osservatore Roma$ accused the United States tently disobeyed U.N. orders. of "interference" in changing tHe scope of the U.N. mission from a peaceful one into a war. pn July 12, the Pope himself Laboratory for the rest of Africa made it known through his spokesman that "if humanitarian The enraged U.N.-U.S. reaction can be explained only interventions are not linked to a moral permanent value, they if one understands that the Italian initiative not only demon­ are no good." The Pope accused Clinton of ordering military strated that you can achieve results by engaging in dialogue operations in Somalia to improve his opinion polls. with Somali factions; it also threatened to collapse the entire structure of war economy which the U. N. is supposed to be 'Quelli del Britannia' fighting, but which in reality is a pillar of the U.N. 's world­ The Italian challenge to the Anglo-Americans, however, government project for Africa. In fact, the U.N. is using cannot be understood unless it i$ seen as the manifestation of the Somalian "laboratory" as an experiment for replacing a new consciousness which h�s been developing over the existing nation-states with tribal units, and replacing all eco­ past six months. Italian politica� leaders have come to under­ nomic activity with export of drugs and import of weapons. stand that Anglo-American power centers are playing a major This scheme already partially works in Somalia, where each role in the destabilization of th�ir country. More and more, warlord has a band working like a company, the "blue-col­ warnings and analyses to thati effect, written by Lyndon lars" being the guerrilla fighters. Such a societal organization LaRouche and his associates �nd published by EIR , have would guarantee that the "world government" (i.e., the found their way into the medi4t (see box), up to the point U.N.), is not hindered by national interests, while at the that today the "Anglo-Americarldesta bilization of Italy" has same time guaranteeing a constant flow of money, as drug i revenues, into the coffers of international banks. Witnesses report having seen U.N. planes loading drugs in Somalia, and point to the fact that each warlord was given initial capital to start his activity. Aideed, for example, is rumored to have All Italy knows been financed by the oil company Conoco, while his rival Mahdi is backed by Egyptian financiers, friends of U.N. Secretary General Boutros Boutros-Ghali. who theenemy is The weak flank in such a structure is represented by So­ Excerpts of an article appeqring in the July 8 magazine malia's elders-local leaders who still have some authority L'ltalia, entitled "Attack IAgainst Italy-or Rather, among the citizenry, although decreasingly so. Therefore, Against Europe" : the warlords, in search of legitimacy, have had to come to terms with them. This was the Italians' point of intervention. "Italy is victim of a systematic destabilization from forces By contacting every level of Somalian society, the Italians which are coordinated interdationally and internally. The have been able to partially dismantle the war structure. Of usually less-understood corltponent is the foreign one, course, dialogue is not enough; what is urgently needed is represented by a cartel of fo/reign speculators committed infrastructural investment. But by offering, for example, a to destroying the country wi/thI borrowed money." Is this small wage for a police job, the Italians have already enrolled the thesis of the Great Conspiracy against this poor, bat- youth who otherwise would be toting a gun under a warlord. tered Italy? It seems so; and this time it was not a more or As far as the U . N. accusations of insubordination against less official representative df the state who sounded the General Loi, the behavior of the Italian commander was alarm, but an economic exp4rt, and an American to boot. totally correct. Loi accepted orders from the only agency His name is William Engdahl, and he gave the introducto­ which is supposed to issue them: the Italian government. "By ry speech at a meeting recehtly held [June 28] in Milan the way," commented military expert Luigi Caligaris, calling and diligently censored by :the national press. Yet, the the bluff, "don't the Americans in Somalia also take orders theme of the meeting was anI intriguing one: "Is there a from their own government?" plot to destabilize Italy?" At present, given the Italian government's unyielding Attracted by the theme proposed by the organizers, support for Loi, the conflict between Italy and the Anglo­ the American magazine EXf!cutive Intelligence Review, Americans has no perspective for a solution. The Italian businessmen and economic bperators, as well as a varied government is forced to take a nationalist stand under the brigade of parliamentarians,i participated .. .. pressure of public opinion. Surprisingly, a sort of patriotism At the center of the anaIbrsis by Engdahl and his col­ has surfaced among political forces (less surprising among league Claudio Celani, is tljle attack which they say the the people at large, for whom General Loi has become a

42 International ElK July 30, 1993 become a fundamental parameter of any serious political tially supporting EIR's allegations: of a "British freemasonic analysis made in public. plot" against Italy. A representative of the "excommunicat­ A document published in January by EIR , denouncing a ed" Grand Orient, former Grand Master Armando Corona, secret meeting which took place last year on board the British told this news service on July 7, "it is beyond doubt that the royal yacht Britannia, has made the plot into almost a house­ British-and the Americans-laQnched economic warfare hold word. "Quelli del Britannia" ("the Britannia guys") has against Europe." The other worrying aspect, Corona said, become synonymous for the group which is destabilizing referring to the activities of finan4ier George Soros pointed Italy. A conference held by EIR on June 28 in Milan drew to by EIR , is the prevention of aptonomous monetary and spokesmen from almost all political parties, fromlef t to right, financial life of European natiqns, through speCUlation who agreed on the necessity of facing the economic and against currencies. Corona said hiS friends in the Italian gov­ political destabilization by re-establishing full sovereignty on ernment(n ot including Prime Minister Ciampi, who is close monetary and financialpower . (See "Movement Launched to to "quelli del Britannia"), will iaurich a fightto prevent "wild Save Italy," EIR , July 16, 1993.) Such a coalition of forces privatizations," i.e., the sellout of state companies to interna­ had never been seen in Italy, except during the time of Enrico tional financial circles. Mattei, the founder of Italy's oil giant ENI, who rallied sup­ Will American leaders prov� themselves more stupid port for his nationalist enterprises among traditionally op­ than Italian freemasons? Not if they act like Sen. Robert posed parties. Byrd, who strongly attacked U.S, behavior in Somalia, re­ Even Freemasonry seems to be split along a nationalist questing a congressional debate. The next step is to launch a line, a phenomenon which brought the British Mother Lodge large-scale reconstruction program like the one which Lyn­ to "suspend relations" with the Italian Grand Orient last don LaRouche indicated at the �ginning of Operation Re­ month. An unnamed high official of the Grand Orient was store Hope, when everyone had gpod reason to believe that quoted in the weekly magazine Il Sabato on July 3, substan- George Bush could not have sudd¢nly turned into a pacifist.

Anglo-political-financial world has unleashed against Eu­ we will really see some fun. rope and against Italy in particular, which is considered to be a weak link in the European front. "An economically Extracts of an article appearing in the Italian Catholic stable Italy," Engdahl observed, "connected to a continen­ weekly II Sabato on July 5: tal Europe strengthening itself around a reunified and ...[Accor ding to Senator Carmine Mancuso of the La prosperous Germany, was no longer useful to a global Rete party,] "In the banking worlq everybodyknows that Atlanticist hegemony-rather, it represented a threat." nobody is admitted in the high financial circles in New The American expert clearly refers to the Anglo-Ameri­ York or London, ifhe is not a me�er of a masonic lodge. can establishment, accused of pursuing the "globalization . . . Powerful Anglo-Saxon masorhc circles control a fun­ of the markets," that is, the realization of a single world damental aspect of the internatiopal narcotics traffic, a economic system without any control over the circulation business that some internationalpe>l ice authority estimate

and creation of capital. . . . in 600 billions a year. ". . . The remedies? Given the economic approach of the But when did it start, this thiqk air of suspicions be­ meeting, the EIR experts insisted on the necessity of con­ tween Italians and British that even overthrew links be­ taining the "derivative" phenomenon, maybe with an ad tween brothers? There is a date: O� June 2, 1992 ....On hoc tax. The spreading of this financial malpractice has that day, the yacht Britannia, pwned by the British transformed the world stock exchange system into an "im­ Crown, lands on the Italian shofels. On board, the mag­ mense gambling house, now almost totally disconnected nates of the City's financial and bapking world. Under the from the real economy. Derivative transactions amount auspices of Queen Elizabeth herself, they meet the leaders daily to almost a thousand billion dollars, enough to defeat of the Italian financial elite , of IENI, AGIP, Crediop, any central bank.". . . COMIT, Generali, Societa Autosttade. The sophisticated The most interesting aspect of the meeting was maybe meeting remains secret, until last JIUl. 14, when Executive the emergence, among the leftist representatives, of an Intelligence Review in Wiesbaden:makes the scoop .... unsuspected receptivity for a national policy that defends Fantasies, or reality?Difficult tq say. On March3, Trea­ the economy and Italian independence. Ugo Gaudenzi, a sury Director General Mario Dra$hi, in a parliamentary Social Democrat, went so far as to wish an alliance among hearing, admits to having been the Britannia, but of 0(1 all national political forces to defeat the Anglo-American having read his speech without p�cipating on the cruise strategy of hegemony in Europe. If the Milan meeting has thatfo llowed, differentfrom some �ho todayhave ministeri­

a followup in the Parliament and among political forces, al responsibility and who then staye.tJ on board. . . .

July International EIR 30, 1993 43 The aim of the U.N. mission there is to help the country Commentary re-start its economy and establish a democratic process. The U.N. functionaries in charge ha-\re let it be known that there is no hurry to set up elections: T�ese should take place when all the weapons of the conflicting parties have been given Somalia: a bad end back, and there is an established concept of general peace, and national institutions have startedto work. U.N. Program fo r the u.S. empire for Development functionary Aldo Ajello has said that it will take between 18 and 24 months before national elections are by Leonardo Servadio called. There can be no hurry when people came out of years of internal fighting. Nearly 30 missionaries are involved in the peace effort. July 12 might be chosen by posterity as a meaningful day to The Italian troops are defending the railroad, which cuts mark the end of the U . S. empire. On that day , the helicopters through the country, connecting the capital, Maputo, to Zim­ of the Marine expedition corps bombed warlord Gen. Mo­ babwe. Peace in Mozambique will hold if the foreign mission hammed Aideed's headquarters in Mogadishu, killing 80 is able to maintain its moral purpose, since in this way people Somalis. They were killed to strike a blow against Italian will soon experience actual economic development and, in a diplomatic "mediation" attempts among different factions context of peace, jobs will expand rapidly. Couldn't a similar fighting in Somalia and the U.N. expedition. approach be taken in Somalia? ! For the firsttime , all the Italian political parties (save, for the moment, the Northern League), have widely criticized An asinine foreign policy i U . S. behavior; national unity has been reached for the first People remember the day when the U.N. mission in So­ time in the postwar period, from the left to the right of the malia began: U.S. Marines landed during the night on the political spectrum. The governmentstood finnlybehind Gen. Somali shore, heavily armed ahd with their faces painted Bruno Loi, publicly rejecting U.N. Secretary General black, to conceal themselves in the darkness. As soon as they Boutros Boutros-Ghali' s request to recall him for not follow­ took hold of the terrain, they were surrounded by journalists ing the U.N. (U .S.) line. and were blinded by the camera tIoodlights. In an interview published Jbly 16 in La Stampa, ·U.S. The case of Mozambique strategist Edward Luttwak said ithat President Bush wanted An example of the way Italy has been acting recently in the Somali operation to deflect the mounting pressure push­ its policy toward the Third World is the case of Mozambique. ing the U . S. to intervene and save the Bosnian people. Soma­ On Oct. 15, 1992, an agreement was reached in Rome be­ lia was chosen, according to Luttwak, because the Marine tween the fonner Marxist regime of Frelimo (National Liber­ Corps had a new, expensiveamphibious landing craft which ation Front of Mozambique) and the guerrilla Renamo (Na­ was to be tested, and the Somalilbeach was an ideal place for tional Resistance of Mozambique), which put an end to a 12- that. While such statements probably do not tell the whole year-long internal war, which had made of Mozambique one story , they contribute to revealing the level of stupidity in­ of the poorest countries on earth ($80 annual per capita in­ volved in U.S. policy deliberati�ns. come) . The agreement came about as a consequence of the years-long efforts by the Comunita Sant'Egidio, a Catholic Continuing the Iraq trag�dy community which operated in concert with the Italian For­ When the "U.N." operation: against Iraq was decided in eign Ministry . The fundamental element moving the efforts July 1990, EIR warned that it was an operation aiming at of Sant'Egidio Community was humanitarian-a moral atti­ establishing a finner U.S. control over Europe, by consol­ tude. The agreement still holds, while a group of internation­ idating the Anglo-American hold on the Middle East; yet few al donors , led by Italy, is starting to channel aid, which is in Europe believed it, and evtn fewer opposed the U.S. delivered to the population by a U.N. military corps in which "surgical strikes." Now the Food and Agriculture Organiza­ the Italian presence is predominant. The economic situation tion is warning that in Iraq a fa�ine of catastrophic propor­ is still desperate, and there is no guarantee that peace will tions is developing as a consequence of the war waged by the hold in the future; yet so far , the situation is improving. United States in order to "free'1 Iraq of its dictator Saddam Mozambique Catholic bishops report that the Christian Hussein. community (some 2.5 million persons, approximately 20% What is happening in Somalia now, where the U. S. has of the population) and the Islamic community (more or less targeted Aideed as the bad guy, is the continuation of the the same size) get along well together. When a Catholic policy established by the Angld-American interests in Iraq. bishop reaches a village dominated by Muslims, he is hosted It is a policy which has no future, and if the United States fraternally. keeps pursuing it, it will be digging its own grave.

44 International EIR July 30, 1993 Washington's handprints found in Pakistan crisis management by Susan B. Maitra and Ramtanu Maitra

The three-month crisis in Pakistan, which took a full-blown whom are retired Annymen , have also been named. fonn on April 18 with the President dissolving Parliament meddling and sacking the prime minister, has gone into a temporary u.s. lull, with both the President, Ghulam Ishaq Khan, and the Prior to and throughout the crisis, one major player re­ prime minister, Nawaz Sharif, agreeing to step down. A mained in the shadows, namely Washington. Prime Minister caretaker prime minister and a caretaker President have as­ Sharif got on the wrong side of Washington when Arab lead­ sumed control at the center and four provinces of Pakistan, ers, allies of the United States, began complaining early this and preparations for the Oct. 6 national assembly and the year about the training of Muslim guerrillas in Pakistan by Oct. 9 provincial assembly elections have begun. the Pakistani Inter-Services Intelligence, under the tutelage The crisis had turned into a sordid drama and the country of Javed Nasir, an orthodox Muslim and a close follower of was increasingly ungovernable. During this period, the duly­ the prime minister. elected Nawaz Sharif governmentand the National Assembly Although Nawaz Sharif had supported the U.S. role in were dissolved by the President, who was already engaged the Gulf war and bent over backwards to accommodate the in a bitter feud with the prime minister. Five weeks later, the World Bank and the International: Monetary Fund (IMF), prime minister and the National Assembly were restored, Sharif is an industrialist and not a part of the feudal establish­ under the order of the country's highest court. Within days, ment. And it is Pakistan's establishment with which Wash­ the provincial governments became involved in the bitter ington has close cooperation. It really does not matter wheth­ fight and within two days (May 29-May 30), the two provin­ er any particular feudal leader iSI pro-democracy, as the cial governors, both presidential appointees, hit back with Bhuttos nominally are; he or she belongs to the establishment the dissolution of the provincial assemblies. Although the and hence is fully manageable from Washington. Sharif is Lahore High Court overturned the governor's decision to not a part of the establishment, although he did his best to get dissolve the Punjab Provincial Assembly on June 28 , within in, and even today takes pride in having been handpicked by minutes of the court's decision, the Punjab governor dis­ the late Gen. Zia ul-Haq , who was as much a part of the solved it again. Prime Minister Sharif, whose political establishment as any other military ruler in Pakistan. strength lies in Punjab, gave direct control of the province to On the other hand, Benazir Bhutto, who is strongly the federal government, in a bill which never took effect. backed by the Project Democracy crowd in the United States, On July 11, the opposition, led by fonnerPrime Minister was always part and parcel of the establishment. After she Benazir Bhutto, who had openly sided with the President was sacked by President Ghulam Isbaq Khan in August 1990 before the latter's sacking of the prime minister and dissolu­ from the prime ministership, she made peace with the two tion of the National Assembly on April 18, called for a "long most important wings of the establiishment-the Anny and march" into Islamabad on July 16, with fresh elections. At the bureaucracy, the same two wings which were involved this point, the Anny Chief, Gen. Abdul Waheed Kakar, in hanging her father for defying the establishment. Later, handpicked by the President against the wishes of the prime Miss Bhutto even became the messenger of President Ghu­ minister, moved in and began talks among the President, lam Ishaq Khan to implore Washington not to label Pakistan prime minister, and the opposition leader to bring the crisis a terrorist state. to an end. On July 2, General Kakar gave Prime Minister Her sudden switch from bein8 a virulent opponent of Sharif two weeks to resolve the crisis, although both the the President's extra-constitutional JlOwerto a co-conspirator Annyand the governmentdenied this officially. with the President in bringing down the Sharif government Following the resignations, Senate chainnan Wasim Saj­ was motivated by two basic designs. First, she was given the jad was appointed acting President and Moeen Qureshi, a signal by Washington and the Army that she is acceptable, fonner senior vice-president of theWorld Bank, was named and hence wants to seize the opportunity to become prime to head the caretaker cabinet. Provincial heads, many of minister again. The second reason, equally important for the

EIR July 30, 1993 International 45 feudal class to which she belongs, was to save herself and him redundant to both Washington and PresidentIshaq Khan. her husband, who was slapped with criminal charges by the It was a foregone conclusion that General Beg would not be President. given an extension, and he did not get one. At the center of the sordid drama stands President Ghu­ Since then, President Ishaq Khan veered the Army lead­ lam Ishaq Khan, the 78-year-old bureaucrat par excellence. ership toward a pro-U.S. and i so-called professional line. Having risen from a revenue officer to become President and General Kakar, like his predecessor Gen. AsifNawaz Janjua, having served in the highest office for the last two decades, is favorably inclined toward rebuilding ties with Washington. Ghulam Ishaq Khan (known as the BABBA-Best and Big­ It is no surprise, then, that on July 7 a news item appeared in gest Bureaucrat Alive) has been a towel boy of the United the Independent of London which said that the westernworld States for decades. Pakistan's nuclear weapons program, the is favorable to an Army takeo\!er in Pakistan. "Democracy open-armed invitation to World Bank-IMF conditionalities, has been derailed and it appears that only the Army can do a and umpteen coups in Pakistan-in all this Ishaq Khan re­ repair job," one westerndiplomllt is quoted saying. "We will mained a central figure, acting cunningly, secretively, and back the Army to put the trai� of democracy back on the listening carefully to what Washington wanted. On the one rails," the diplomat added. i hand, he bent with the slightest breeze, but on the other, in Subsequent reports carrieq by the Washington Post, domestic affairs particularly, he was the cantankerous old which said that the United State� does not want the Pakistani man who refuses to listen and change. Ofthe 12 prime minis­ Army to take over, were patently a sham. The article appeared ters so far in Pakistan, nine were dismissed, one assassinated, on July 16, at a time when Genetal Kakar had alreadyworked and one hanged after a sham of a trial. out the formulation, with W ashipgton' s help, which led to the In Pakistani politics, the winner takes all. The winner resignation of the prime ministeI1and President. The news was has the right to vilify, jail, and destroy the loser. President propagated to "reconfirm" Was�ington's "faith in democra­ Ghulam Ishaq Khan is a highly successful product of such a cy" and opposition to military rule. However, the fact remains system. But the bottom line always was his obedience to the that on July 2, when both the Pr�sident and the primeminister United States; that kept him alive. Nawaz Sharif said recently were insisting on hanging on to power, General Kakar had that the reason the elections would be held in October was issued an ultimatum to the primctminist er, and the reason that because the President's term expires on Dec. 12, and even Miss Bhutto had called off her "long march"was that General after all this, he is thinking of seeking a fresh term once a Kakar, who had met her on the night of July 15, told her that new government and new National Assembly are in place. It the adopted formulation was in'place. is more than likely that Ishaq Khan expects this little benevo­ lence from Washington. After all, he has served his masters Qureshi, the World Ban{{'s man well. But all the evidence cited here is convoluted, compared to what happened next. Following the resignation of the Pres­ Toward an Army takeover? ident and the prime minister, Moeen Ahmed Qureshi, a se­ It is widely acknowledged that Washington has gotten nior vice-president of the World Bank who had spenta good back control of the Pakistani Army after almost a decade. It part of his career in Washington, was flown in from Singa­ was Washington's man in Islamabad in the latter part of the pore to be the caretaker prime �inister of Pakistan. Qureshi, seventies and earlier part of the eighties, Gen. Zia ul-Haq, who is reportedly ailing from ¢ancer, is an economist, and who began to defy the United States, dreaming of Pakistan's observers believe that his seleotion as the country'sinterim control over Afghanistan. During the period that Soviet Pres­ chief executive was dictated by Washington, in order to get ident Mikhail Gorbachov was steadily bringing the Soviet Pakistan's balance of payments support through his contacts Union closer to the United States, General Zia, however, in the IMF and the World Bank. against Washington's expressed wishes, had continued to In other words, Moeen Qureshi's job is similar to the one back the Afghan rebels and even picked his favorite, Gulbud­ that was carried out by another World Bank vice-president, din Hekmatyar, with the hope of controlling Kabul from Dr. Mahbubul Haq, in 1988, following the death of General Islamabad. Zia. At that time, Dr. Haq, in Collusion with President Ghu­ General Zia paid dearly with his life for this misadven­ lam Ishaq Khan, had signed the IMF conditionalities during ture, but his replacement, Gen. Mirza Aslam Beg, a Zia the interim period, so that the new administration could not protege, was no different. His dream, however, was a little dilly-dally in signing those "important" documents once it more grandiose, thinking out loud of a strategic Islamic alli­ was in power. It was the signing of those conditionalities ance with Turkey, Iran, Afghanistan, and the Central Asian which tied the hands of the Bhutto administration, and forced countries. He probably did not realize that the winds of Benazir Bhutto to adopt the a�stere economic policies de­ change were already blowing across the Pakistani Army. His manded by the IMF. support to Iraq's Saddam Hussein and his mistaken belief Pakistan now has a break t):"om a three-month old crisis, that the Iraqi Army would defeat the U. S.-allied forces made but the pieces are in place to create new instabilities.

46 International EIR July 30, 1993 Corrupt French elites launch new McCarthyite inquisition by Mark Burdman

In early June, the outgoing head of France's DSGE secret spokesmen have launched a virule$t campaign that can only service, Claude Silberzahn, gave an extraordinary retirement be likened to the era of McCarthyism in the early- 1950s speech. Addressing intelligence officers at DSGE headquar­ United States, with the McCarthyite buzzword "communist" ters in Paris, Silberzahn warned that France, and the West being replaced by "extreme right." more generally, are heading toward a "civilization of chaos," Representative ofthis, the July 12 daily LeMonde carried caused in large part by the "corruption of the elites." He an "Appeal to Vigilance" by 40 professed intellectuals, who insisted that the way in which economic and political issues claim to be alarmed about the threat posed by "the extreme are discussed has lost almost all connection with the situation right." "Extreme right" is never defined, but is known to in­ in France. clude, on the one hand, such admittedly dangerous types as That these words characterize the problem in France is unrepentant fo llowers of the old pro-Nazi Vichy regime of evident from the behavior of French elites. The deeper the the 1940s and advocates of "national bolshevism" and anti­ economic, strategic, and philosophical-cultural crises in the Christian paganism, and, on the other, supporters of the cur­ country become, the greater becomes the tendency for lead­ rent pope, advocates of a vigorous "war on drugs," and fol­ ing members of the French policy establishment, driven by a lowers of EIR founder Lyndon LaRouche. LaRouche and his form of moral and political corruption , to exhibit symptoms collaborators are routinely defamed in the French media as of acute paranoia and hysteria. Rather than admit that the "extreme right," a slander which is circulated by French agen­ prevailing policy axioms of the recent period have been ab­ cies, but which emanates from the Anti-Defamation League in surd and self-defeating, the elites are lashing out at scape­ the United States, from the Britishintelligence-run magazine goats, manufactured by themselves, as supposedly responsi­ Searchlight in the United Kingdom, and from what was ble for France's problems. known in the years of the Soviet Union as the "Comintern." The state of things, as of mid-July, can be summed up by The statement might better be titled "Appeal to Vigilante­ certain tell-tale economic-demographic facts. French unem­ ism." Issued by a newly formed committee for an "Appeal to ployment is among the highest in all of Europe, second only Vigilance," it began: "We are preoccupied by the resurgence, to Spain, and the French press has begun to use the word in French and European intellectual life, of extreme right "depression" to characterize the economy. Bankruptcies are anti-democratic currents. We are worried about the lack of at a record level. Forecasts are that industrial production will vigilance and reflection on this subject. This is why some collapse by 6% this year. During the week of July 5, the among us have begun, since the month of January 1993, to INSEE national statistical agency forecast that overall Gross meet regularly, in order to exchange information and to deep­ National Product would decline by 1.2%. Meanwhile, the en our understanding of these questions." Quotidien de Paris July 9 highlighted that France is now They claim that "ideologues of the extreme right" are becoming, like many other countries of Europe, a "demo­ more visibly involved than in earlier years in propaganda graphic desert," as the country faces an historically unprece­ within "anti-democratic and neo-Nazi networks." The new dented collapse of births, a problem made worse by the Bal­ danger, they claim, is that such individuals are falsely por­ ladur government's austerity-dictated cutbacks in family traying themselves as having changed their nature, and, to allowances. make that change credible, are now conducting "a large oper­ ation of seduction aimed at democratic personalities and in­ Vigilante atmosphere tellectuals," many of whom have agreed to write signed arti­ In this environment, segments of the French political cles in magazines "edited by these ideologues. Once trapped, class have decided that they have discovered the cause of the signatories, of course, give credence to the idea that the their problems: an amorphous entity called "the extreme pretended change is a reality. " right." To divert attention from their own responsibility for This effort at duping well-meaping democrats is key to failures in the domain of economics, policy toward former "the current strategy of legitimization of the extreme right. Yugoslavia, the former Communist sector, and so on , French This strategy takes advantage of the multiplication of dia-

EIR July 30, 1993 International 47 logues and debates on subjects as, for example, what is called been the subject of much discussion in U.S. and British the 'end of ideologies,' or the supposed disappearance be­ intellectual circles, including articlesin the New York Review tween the left and right, or the presumed renewal of the of Books earlier in the year. ideas of nation and cultural identity." Those sucked into such "dialogues and debates" with the "extreme right," the signers 'So many words for not,,-ing' claim, either sufferfrom "a lack of information or vigilance, How the appeal exemplifiesthe "corruptionof the elites" from being too scrupulous in defense of libertyof expression, that former DSGE head Silberzahn was pointing to , is under­ or from a concern for unlimited tolerance." Therefore , they scored by a commentary by Roger-Pol Droit in the same "play the game today, without wanting to do so, of this day's Le M onde, entitled "The Confusion of Ideas." operation of legitimization." Droit wrote that "the alliances that are being renewed The appeal's "democratic" signers are apparently not today between several communist militants and neo-fascists comfortable with "liberty of expression" or "tolerance," and must be taken seriously," even if the number of individuals would be more comfortable with a police state. Indeed, they involved in forming such alliances is small. "But," he went go on to complain that the "involuntary complicity" of those on, "it signals, as a small revelatory fact, a formof confusion, duped by the "extreme right" contains within it a greater more vast and more diffused, that has overtaken intellectual danger, since "we cannot, in effect, forget that the words of life in the course of these last )'Iears, and which is increasing the extreme right are not simply ideas among others , but in strength in recent times. We'must certainly not underesti­ are incitements to exclusion, violence, and crime." In other mate the risk that is developing in Europe of such conver­ words , to be a member of the "extreme right" is in and of gences, which are seizing the opportunityrepresented by the itself a criminal form of behavior. chaos which reigns in Russia, by the racist murders that are To combat such dangers, the signers have decided to form mUltiplying in Germany, by the unpredictable consequences a kind of intellectual gestapo. Hence, they have assigned of the war in ex-Yugoslavia ....There exist in our intellec­ themselves "the task of collecting and circulating as widely tual life perilous tendencies." Droit outlined how various as possible, all information useful for understanding the net­ French socialists and leftistsha�e opened up a dialogue with works of the extreme right and their alliances in intellectual such "extreme right" pagan ideologues as Alain de Benoist. life (publishing, press, universities), and to take a public Tinged with hypocrisy and intellectual dishonesty, Droit position on all matters relative to these questions. We are is turning reality on its head, ahd trying to blame this amor­ committed to refusing any collaboration to magazines, col­ phous "extreme right" for the policyfailures of the predomi­ lective works , radio and television broadcasts, colloquia di­ nant faction of the French political class. As noxious as the rected or organized by individuals whose links with the ex­ ideas of an Alain de Benoist may be, it is absurd to hold him treme right would be proven." responsible for the abysmal policy of the French government. They conclude: "France, from all the evidence, is not Respecting the Gulf war confiontation of 1990-91, it must the only European country where such diverse strategies are be said, to de Benoist's credit, tihat heco-sig ned a declaration unfolding. This is why we call for a Europe of vigilance, by opposed to the war, other signers of which included dissident asking any person who approves our initiative to sign this Socialists, Gaullists, Communists, and Catholics. By con­ manifesto. " trast, the majority faction in the French political class sup­ ported that genocidal adventure. Derrida the Nazi French intellectual and political activist Bernard-Henri Among the signers of the appeal are France's Jacques Levy, in a commentary in the July 18 Italian daily Corriere Derrida and Italy's Umberto Eco, two of the leading cultural della Sera, polemicized that if someone were really worried purveyors of gnostic, fascistoid irrationalismin Europe. Eco, about "national bolshevism," he would mobilize against Ser­ the linguist and author of the Name of the Rose and other bian leader Slobodan Milose\iic and his growing array of works , is one of the intellectual godfathers of the terrorist allies in the former communist sector. Levy, who has been scene in Italy. active in organizing support for the besieged Bosnians, Derrida, were he to be logically consistent about his de­ knows he is hitting a raw nerVe, given France's flagrantly mand for the elimination of the "extreme right," would have pro-Serbian policies. to hang himself. He is the father of "deconstructionism," a He wrote: "The real national-communist danger is Slobo­ radical irrationalist philosophy that has provided the impetus dan Milosevic, a red-black synthesis, from Sarajevo to Mos­ behind such destructive movements as "political correctness" cow, from Sofiato Kiev to Vilnius." Levy advised intellectu­ in the United States. By his own admission, his theories als to "not forget priorities. .' ..I'm afraid that, in those derive from the writings of the Nazi-precursor German irra­ strange laboratories in the East, products of a really new tionalist philosopher Friedrich Nietzsche, and from the Nazi­ synthesis are coming out . . . which will make retrospective­ era supporter of Hitler's regime, Martin Heidegger. The con­ ly pathetic our ritual gesticulation against 'fascism' and its nection between his philosophy and that of the Nazis has 'ghosts.' "

48 International EIR July 30, 1993 Interview: Dr. Ali Elhag Mohamed

One doesn't need the IMF or World Bankto survive Dr. Ali Elhag Mohamed, Sudan's minister of economic plan­ EIR: Regarding the peace negotiations, one issue has been ning and investment, has just been named Sudan's fe deral the application of Sharia (Islamic law) in the South, where affa irs minister. He led the Sudanese government delegation the population is Christian, animist, and Muslim. Has there at the peace talks with SPLArebels in Abuja, Nigeria, which been progress made in the negotialiions on this point? went fromApril to June. Dr. Ali Elhag presented the results I think that in Abuja II we solved some of Dr. Ali Elhag: of the talks at a press conference in Bonn, Germany on July these issues, because we acknowledged that the problem in 13. the South has been there for years-in 1955 when the war In his briefing to the press, Dr. Ali Elhag explained that began, in 1983 when it was started again-so we have to the Sudanese governmenthad sent a high-powered, ministe­ address these issues first. It is important, because people rial-level delegation to the Abuja /Italks, which represented discuss the problem in the South a� if it were all related to the thefirstface-to{ace talks with SPLArebel leader John Gar­ Sharia. ang's group, without mediation. The Nigerian government We have the view that even if Sharia were abrogated had invited the Sudanesegovernment April 6, when Garang today, that would not solve the problem. So we said, as far was in Abuja; at that date, Garang was not prepared to meet, as Sharia is concerned, our projeCtion is that they fear that and suggested April 26 . with application of Sharia, the non-Muslims will be second­ However, when the talks opened on April 26, Garang left class citizens. Now we said, if thal is your fear, let us put it fo r Europe and the United States, and was received by the categorically in the Constitution, tb.atour criteria for holding Dutch government. any post-President, [minister of] defense, anything-is cit­ In the United States, where he met twice with the State izenship, not religion. So that solves a lot of the problems as Department and once with the secretarygeneral of the United far as political rights are concerned. Nations, he tried to organize fo reign supportfo r an interven­ We came to the question of penal law . Regarding person­ tion, and the creation of "safe havens." This, Dr. Ali Elhag al law, everybody has the right in North and South, regardless characterized as "sabotage" ; "Here we are with ministers of religion, to apply the personal law he likes, he believes in. to discuss, and John Garang is in Holland calling fo r inter­ So personal law is not a problem. If you are a Christian, you vention." can bring up your children Christian in the way you like. Garang arrived back in the Nigerian venue of the talks to block afinal communique; the talks were adjourned, on the EIR: By "personal law ," what do you mean? suggestion of the host country, untilJune 19, aft er Nigeria's Law relating to marriage, education, belief. Dr. AU Elhag: elections. This is personal law . Whether to drink or not, for example, Following those elections, however, Nigeria entered an is a question of personal law . internal crisis, and the talks have not been continued since. When it comes to penal law, 1J!1ere's an area, where you Dr. Ali Elhag rejected the proposed "safe havens" on the say, in the South, if one commits a crime, theft for example, grounds that Garang, who has lost militarily, is supporting he will not be subjected to the Shaf.,ia penal code, but will be fo reign intervention to shore up his position. subjected to other punishment (acc�rding to custom), impris­ In talks held in Nairobi with another rebelfaction which onment, or whatever. has split from Garang, agreement was reached on a number Between you and me, that seems to be acceptable to most of issues and included in a communique. Following his dis­ of the people. But because of the outside world and the cussion with the press, Dr. Ali Elhag granted the fo llowing media, who are saying that Sharia is the problem, they them­ interview to EIR. selves, the rebels, are hostage to rhat media. The media come

EIR July 30, 1993 International 49 and ask them, do you accept Sharia, and they say no. But we that that is not true . If you taU our GDP [Gross Domestic have, I think, reached a breakthrough, because in the past Product] today, it is more than what it was. [Our growth rate] they were talking about abrogation, and now they discovered was 4%, now it is 13%, by thd IMF standards. We have a that no government will abrogate Sharia. food surplus, so we are quite satisfiedwit h our program. We In Nairobi [in talks with the other rebel faction], we made think that the way the IMF is behaving might tum out to be a a lot of progress. We wrote it down in a way that in the North, blessing in disguise, as far as opr government is concerned. there is Sharia; in the South, people can have customary law, If you take a place like Egypt, Egypt is still dependent on or any other law . We left it loose. The fact remains, even wheat from America, France, �nd Australia. That is a very during the reign of Sharia, it has never been applied in the big invoice, to import up to 6 million metric tons of wheat South, and it was applied wrongly in the North; but if the law every year from the outside. Th�t is a real problem. We have is applied wrongly, that does not mean that the law is wrong. solved that problem. We think the breakthrough in the discussions is there, though The economic situation in E$ypt is also one of the factors , it has not been nailed down in writing fully. but also the suppression of the Islamists is a problem. The thing is a problem of the westerncountr ies' approach. If there EIR: Peace in the region is not only an internal Sudanese were free elections in Cairo, the situation would be better in matter. There have been serious tensions with Egypt, around the sense that probably President Mubarak would not be the Halaib issue, as well as around Egyptian allegations of there . But in the final analysis i� is the choice of the people, Sudanese support for Islamists. In this light, the meeting not the choice of America. We iare living in a very different between Sudanese President General al-Bashir and Egyptian world; when it comes to AmeriK::a, you want the Americans President Hosni Mubarak in Cairo, at the opening of the to choose what they want, wh�n it comes to Algeria, you Organization of AfricanUnity conference, came as a pleasant want the Americans to choose tlorthem , the same applies to surprise. Can you tell us more about these talks? Sudan. This is very ironic . Thah the real situation. I think that the discussions were very frank, Dr. Ali Elhag: And now you take the United Nations Security Council, because most of the things the Egyptians think about us were that's not democratic. In the U.JN., the Security Council with not brought up. The question of the Iranians, the [alleged] so its 16 members, they have the power, while the General many thousand Iranians in Sudan, is not true. The President Assembly, which represents the whole world, has no power. told Mubarak, "It is not true, if you think there are groups, It's not democratic at all. We in Sudan are free to talk, and show us the photographs." we are free because no one is Igiving us anything. Even if Even the question of terrorism, this is also not true . After they gave us something, we ate not going to stop talking. all, Sudan does not export anything; if anything we are recipi­ That's the most important mess!lge. Look at what is happen­ ents. We do not export Islam, we are recipients. Where did ing in Somalia and Bosnia-Heq;:egovina, and nobody talks. we get it from?From Saudi Arabia and Egypt, this is a fact. That's not acceptable, by any siandards. The question is that there is a real problem inside Egypt. . . . EIR: Do you see any possibility for a change, an improve­ EIR: One real problem for all the countries in the region is ment in relations between Egypt and Sudan, particularly re­ the economy, and specifically the policies demanded by the garding economic cooperation? International Monetary Fund (IMF). Can you tell us how I think that the! political situation might im­ Dr. Ali Elhag: Sudan is facing this? prove a lot and the question or!Halaib , etc., I think all will The recipe of the IMF is not workable. Take come to a solution. But for egypt to have real economic Dr. Ali Elhag: Sudan, for example: The IMF had been supporting all mili­ change depends on political will. The Egyptian people are tary governments, the last one was [Gaafar] Numayri's mili­ very capable, very able, they ate enlightened, better educat­ tary government, which received a lot of money, nobody ed, more sophisticated, they d

50 International EIR July 30, 1993 Report from Rio by Geraldo Lino

NGOs assault Brazil on environment ture Conservandy (TNC). The Nature Conservancy has just Non-governmental organizations are tryingto brainwash launched an internationalcampaign to Brazilians and dictate the government's budget. "adopt an acre" to raise funds to "pur­ chase" a part of Mat a Atlantica in the state of Parana fcbr the purpose of "pre­ serving it." In statements published in the July 14 Gazeta Mercantil, the di­ Dissatisfiedwith what they consid­ ered "opinion-makers" (businessmen, rector of TNC's Development Pro­ er to be Brazil's slowness in imple­ politicians, governmentworkers , sci­ gram, Jeanne Pen, said that other C. menting environmental protection entists, and leaders of social move­ areas of interest to TNC in Brazil in­ measures promised during last year's ments), produced the opposite result. clude the "�atened" ecosystems Eco-92 conference, national and in­ This group identifiedthe major prob­ such as the Ce�do, the Amazon, and ternational non-governmentalorgan i­ lem as lack of basic sanitation. the Pantanal. P¢rhaps it is a coinci­ zations (NGOs) are trying to broaden The NGOs are also attempting to dence that thes, regions are of vital their influence in the country. participate in the decision-making strategic interest for any plans to de­ NGOs' dissatisfaction became ev­ processes for projects financed by the velop the country'sinterior. ident in mid-June when the U.S.­ World Bank. At the end of June, a Contributors to the campaign in­ based Natural Resources Defense meeting between bank representatives clude Coca Cola, J.P. Morgan, Dow Council (NRDC) released a report at and some of the major Brazilian Chemical, Smith Kline and Beecham U.N. headquarters in New York enti­ NGOs laid the basis for that. At the and other multinational corporations, tled "One Year After Rio: Keeping the meeting, the director of the bank's de­ and the John and Catherine T. 0. Promises of the Earth Summit." The partment for Latin America and the MacArthur Foundation, one of the report said that Brazil was one of the Caribbean, Rainer Steckhan, affirmed most active sponsors of the Anglo­ worst offenders in its failure to com­ that "the factor limiting involvement American establishment's campaigns ply with the agreements signed at the of institutions in seeking resources for against Ibero-Apterican nations, par­ conference. NRDC director Jacob Brazilian environmental projects is ticularly Brazil. The foundation is one Scheer told 0 Globo that Brazil's poor conditioning approval of the project of the primary �ackers of the World record "is our worst disappointment. and the loan to the participation of an Resources Instiitute in Washington, We had hoped that it would lead the NGO in the process." As Jornal do which in 1990 a¢cused Brazil of being developing countries in areas relating Commercio reported June 25, Steck­ the world's third largest contributor to to respecting the environment. But han said, ''I'm making that observa­ the greenhouse �ffect, because of the Brazil has done nothing: It hasn't rati­ tion because in the advanced coun­ gases emanating from the burning of fiedthe biodiversity treaty nor will it tries, the NGOs participate in up to a the Amazonian rain forest. ratify the climate treaty before 1994." third of the process, an example which The foundatlion also helped to fi­ The growing influence of the could be followed in Brazil." nance the book rI'he Military and De­ NGOs was seen in a survey by the According to Steckhan, the NGOs mocracy: the FJture of Civil-Military Museum of Astronomy and Related want to negotiate the governmentbud­ Relations in Latin America, known in Sciences of Rio de Janeiro, which re­ get, something he said would be "very Ibero-America �s the "Bush Manual," vealed that 41 % of 3,650 people sur­ difficult," since the bank only deals which calls for the virtual dismantling veyed pointed to the burning of the with national governments. of the continent�s armedfor ces. rain forest as the country's majorenvi­ Those who participated in the TNC, foun�ed in 1951, is one of ronmental problem; another 25% meeting with Steckhan included Jairo the most powerirul of the U.S. envi­ pointed to nuclear energy. Survey co­ Costa of the Brazilian Foundation for ronmental NGOs. It is organized like ordinator Samyra Crespo said the re­ the Conservation of Nature (FBCN); a corporation, with 1,200 employees, sults show that the population "is be­ Roberto Klabin of the SOS Mata At­ and offices throughout the United ing influenced by the opinions of the lantica Foundation; Eneas Salati of the States and abroad, particularly in Ibe­ ecologists from the wealthy nations, Brazilian Foundation for Sustainable ro-America andiAsia. Several Brazil­ publicized by the Brazilian media." Development; and Claudio Padua ians are on its payroll, and it plans to But answers from 72 people consid- from the U.S. organization The Na- open an officein Brazil next year.

July 30, 1993 International 51 ElK InternationalIntelligence

Figaro on July 14, Carrington arrogantly any, damlljge to the Iraqi leadership. Any Lord Owen spouts asserted that, as former European Commu­ change in Iraq, he insisted, must be made Serbian propaganda nity mediator in the Balkans, he was well on by the Iraqi people themselves. Cautioning the way toward some kind of arrangement against any further use of force, he said, "If for former Yugoslavia, under the condition k Britain's Lord David Owen, the European further stri es occur, people are only getting that there would be no recognition of any of h Community's "mediator" in the Balkans angrier. W y? they ask. Who suffers? What the former Yugoslav republics until some war, openly spouted Serbian propaganda in is achieved?" kind of "global accord" had been reached interviews on July 11 with the British Sky among them. But the foreign ministers of News and the French Le Journal du Diman­ the European Community, under German che. Owen was asked whether what is hap­ Mexicqn church told prodding, "proposed the recognition of pening in Bosnia is not ethnic cleansing. Croatia and Slovenia," making a negotiated to stay lout of politics "Ethnic cleansing?" he replied. "If we talk I solution impossible. "I wamed European about ethnic cleansing, then we ought to talk leaders against this decision, which ruined Mexican GovernmentSecr etary Patrocinio about the ethnic cleansing the Serbs suffered all efforts at peace. " Gonzalez (jarrido issued a sharply worded in the ' 40s of this century, the worst after Rejecting any measures to end the arms warning to the Catholic Church to drop its that suffered by the Jews." embargo, Carrington said blandly that the campaign �gainst the government around When asked about the five-power war will end at some point, since "even the the case qf the assassination of Cardinal "peace plan" that would confirm Serbia's most atrocious wars have an end." Juan Jesus: Posadas Ocampo. The cardinal territorial aggrandizement, Owen said, d Asked whether there will be war crimes was murd red in May, and the government "You are now discussing a map, and when l tribunals for war criminals, Carrington ob­ immediate y announced that it was a case of you say, 'This is a Muslim village,' a Serb jected to designating this or that person as a mistaken i�entity: that he was killed by drug will tell you: 'This was not a Muslim village "criminal," since trying this or that person lords who !thought he was somebody else. in the '4Os.' " will depend on the outcome of the war. The Catholic Church, among others, has As the Bosnian press has pointed out, "Does anyone seriously believe that the in­ been highl� skeptical of this verdict. these statements are factually inaccurate. ternational community will put Slobodan Witho* mentioning Posadas by name, During World War II, 6% of the Serbian Milosevic on trial for war crimes?" he and camollflaging his attack in a letter ad­ population died, but the percentage of Mus­ asked. dressed to i"the churches," the government lim casualties in former Yugoslavia was secretary �aid that "the function of the higher. The Serbian authorities proudly pre­ church is to spread the Gospel," and that it sented Belgrade to the Nazis as the first Eu­ must resMct the judiciary, the institutions ropean city "free of Jews." King Hussein warns of the repu�lic, and "not intervene into areas Owen also said that in his negotiations reserved e*-clusively for the state and politi­ he had found that "they all lie . . . with of religious conflicts cal society� " He specificallyasked the Cath­ two exceptions, but I do not want to name olic hiermFhy to renounce "its revanchist names." One of the names is believed to Jordan's King Hussein warned on July 15 and irres�nsible attitudes, as well as lack be Serbian dictator Slobodan Milosevic, for of growing tension among the three great of confide�ce [in the government version] whom Owen has publicly declared his per­ monotheistic religions, which is becoming and resentment." sonal sympathy several times. As to the sec­ particularly dangerous because of the ond, the Bosnian press speculated that it is West's efforts to demonize Islam. Bosnian Serb leader Radovan Karadzk. Speaking to the Royal United Services Japan s ruling party Institute in London, the king stated: "A rift r is developing which threatens the cohesion loses cNJsolute majority Carrington blames . . . and the tolerance between the three great monotheistic religions, not only in the After a tumultuous two-week election cam­ Germany fo r Balkan war region but in the world." He said the rift was paign, Ja�n's national election on July 18 leading to a lack of understanding, particu­ resulted inlthe Liberal Democratic Party los­ Lord Carrington, the former British foreign larly where Islam was concerned. He ing an ab�olute majority for the first time secretary, charged in an interview that Ger­ pledged to defend Islam against an increas­ since 1955j.The LDP now has only 223 seats many ruined "all efforts at peace" in ex­ ingly negative image in the world. in Japan's;511-seat Lower House. Yugoslavia by insisting on the recognition He stressed that many Muslim;; saw the The p3jl1ylost only 4 seats in the election of the independence of Slovenia and U.S. bombing of Iraq as a hypocritical use itself; but �t lost its majority because, of its Croatia. of power, which only caused suffering to original 214 members of parliament, 47 quit In an interview with the French daily Le the people of Iraq, and which did little, if the party tb vote with the Socialist opposi-

July 52 International EIR 30, 1993 ISRAELI • Prime Minister Yit­ zhak Rabin warned that Israel is pre­ paring military actions in southern Lebanon. "The Israeli Defense Force ," he said, "is ready with rein­ tion in a no-confidence vote which brought nia-Hercegovina, and should authorize co­ forced troops to defend towns and down the government of Kiichi Miyazawa ordinated air strikes against Serbian supply residents of the north . It will act on June 18. lines, arms stockpiles, and heavy weaponry against those who hit its forces in the The Socialists, which had the next besieging Bosnia's cities-the so-called security zone." largest number of seats, actually lost a large 'lift and strike' option .... number of seats, going from 134 to 70. Oth­ "We say, withdraw if you do not [have] AUSTAALIAN Foreign Affairs er parties had in the range of 30-60 seats, the commitment to fu lfill y.our mandates • Minister Gareth Evans is working on making the LDP still the largest party by a properly and fu lly. We cannot instill you "a comprehensive plan to revamp the huge margin. with the will and courage . Sarajevo is not world's peace-keeping functions," Japan's public TV station NHK reported the 'Land of Oz' and we can no longer afford according to the Australian Financial on July 19 that a likely scenario was that the your half-hearted, symptomatic approach. Review. The "Blue Book" will cover LDP would form a weak, minority govern­ This is the appeal of Sarajevo and the Bos­ "everything :from how and when the ment, making Japan like Italy, as this next nians ." U.N. or other groups should inter­ governmentwould be short-lived and anoth­ vene, to the amount of force that er election held within a year. Voter turnout should be used, and the command was the lowest since World War II at 67 . 3%. Columnistfo resees system that should control troops." CHINA , 'turbulence' in Britain • will deploy People's Liberation f'\rmy troops in Hong "A uniquely turbulent phase in British histo­ Kong, incluilingits downtown areas, Bosnianambassa dor: ry" is likely soon to begin, because of the when the terlritory reverts to Chinese 'Stop the deception' discrediting of the leading institutions and sovereignty 'in 1997, said the PLA' s policies of the British establishment, wrote deputy chie� of staff, Gen. Xu Huizi. Bosnia's U.N. Ambassador Mohamed Sa­ commentator Martin Jacques in the Sunday "Troops are already being trained in cirbey said in a speech in Washington, D.C. Times of London on July 18. Guangzhou :province in preparation on July 15 that the United Nations should In an article entitled "The End of Poli­ for the June: 30, 1997 takeover," he either fulfill its mandate in Bosnia, or get tics," Jacques wrote that the British have said. A figw-e of 10,000 troops has out. "lost confidencein politicians. We don't be­ been reported. "Sarajevo is being strangled," said Saci­ lieve in them any more ." That is not true just of Britain, but of westernnations as a whole, VENEZPELAN rbey, "and there are only two alternatives • Supreme Court for survival . Either the international com­ all suffering from a "crisis of credibility. " justice Alirio Abreu Burelli was the munity, under the leadership of the Europe­ The combination of economic collapse target of a bdmbing attack on July 19, an powers and the United States, must honor and mediocrity of political leadership has although the explosive device deliv­ the mandate it already has, or it must stop the become "almost a universal condition of the ered to his office did not go off. An­ deception that it is addressing the problemor western world." More and more people are other letter bomb delivered to the Su­ even the symptoms in Bosnia-Herce­ turning to non-governmental, private orga­ preme Cou� building did explode, govina." nizations for action, and, comments Jacques injuring one office worker. Observ­ Sacirbey proposed that two draft resolu­ sardonically, "we now await only the ers in Caracts say the environment is tions should be presented before the U.N. League for the Revival of the Dinosaur." extremely tdose. Security Council. "The first should call for What is happening now, he wrote , is not an ultimatum to the Serbian forces besieging like other crises of recent years, but much TUR�'S • top military officer, Sarajevo to liftthe siege, cease the shelling, more profound, since "this is a crisis of the Commande� in Chief of the Armed and to restore the flow of humanitarian relief old paradigm, with no new paradigm yet in Forces Gen. Dogan Gures, warnedin and other essential services. If not, then the view." an interview July II that martial law already-mandated U.N. forces would un­ As for Britain, Jacques wrote that the could be irdplemented, if necessary dertake air strikes against the Serbian posi­ country's "precipitous decline and the fail­ to wipeout the terroristguerrilla forc­ tion that enable the siege and the blockade ure either to reverse it or finda new role and es of the Kurdish Workers Party to continue." Sacirbey noted that these man­ identity is placing a quite new strain on our (PKK). "We're very determined," he dates already exist under U.N. Resolutions major national institutions and fostering a said. "If we cannot render the PKK 770, 836, and others . growing disillusionment with the establish­ ineffective �y the end of winter, the "The other resolution should authorize ment. . . . This growing disenchantment possibility of martial law will be seri­ the lifting of the arms embargo with respect with our establishment and its institutions ously considered." to the government of the Republic of Bos- can only exacerbate the crisis of politics."

EIR July 30, 1993 International 53 �TIillInvestigation

The truth about Carlos Andres Perez

On May 19, two days before Venezuelan President Carlos Andres Perez (known as "CAP") was fo rced to step down Chapter 1: CAP destroyed the and stand trial fo r corruption, the Venezuelan Labor Party productive econo$y and the Ibero-American Solidarity Movement (MSIA) jointly I published a pamphlet entitled "The Truth About CAP ." Be­ ginning with this issue, EIR will publish the text of the pam­ Venezuela's Social Democmtic President Carlos Andres phlet in installments. It is divided into sixcha pters: 1) "CAP Perez (CAP) promised that he would solve the problem of the Destroyed the Productive Economy and Strengthened the foreign debt by renegotiating with the InternationalMonetary Narco-economy"; 2) "CAP, Washington's Man, and the Fund (IMF) the economic pac�age which he was imposing New World Order" ; 3) "The Drug Trade in Venezuelaunder against the will of the majority of Venezuelans. But the whole CAP's Mandate" "Corruption and CAP's Financial In­ ; 4) thing was a demagogic farce. The debt renegotiation did not ner Circle" ; 5) "CAP and Terorrism" ; and 6) "The Caribbe­ provide, as CAP described it on March 20, 1990, any an Legion: CAP's Sinister Roots." "great relief' from the burd�n of the debt. Instead, it "The Truth About CAP" is not only importantfor Venezu­ increased that burden and plunted the majority of Venezue­ ela and Ibero-America, but also fo r the United States. Presi­ lans into unemployment and misery, destroying the econo­ dent Bill Clinton has continued to app ly the major elements my, generating massive unell/lployment, and turning the of George Bush's policy toward the continent, fo r which reins of the economy over to usury, drug trafficking, and I Perez-currently suspended from the presidency-consid­ speculation. ered himself the spokesman. The debt service-that is, the interest payments above For years, Washington kept Perez in offi ce no matter the annual amortization-has rfteant that throughout CAP's what, against the will of the majority of Venezuelans. In administration, one-third of theibudget ofthe central govern­ October 1992 , U.S. Ambassador to the Organization of ment has been allocated to h�nor this usury. One out of American States (OAS) Luigi Einaudi declared that "what every three bolivars spent by the national government goes happens in Venezuela is absolutely vital fo r our collective to the creditors. It thus comes �s no surprise that all public regional future. . . . If there is any interruption [in Perez's services are lacking, beginning with water, public health, government], let me assure you that there will be a number transportation, etc . ! of reactions. " That is the cause of the qhronic deficit in the public Perez was keyfo r the U.S. State Department's op erations sector. While the illegitimate +bt is paid on time, the gov­ on behalfof the Nicaraguan Sandinistas, El Salvador's com­ ernmentcontinues to divert the:resources necessary for pub­ munist guerrillas, and he presided over the conversion of lic services into the coffers of iusurious creditors. Venezuela's financial sector into one of the world's largest The 1990 debt negotiation committed the Venezuelan drug money launderers. state to pay debt service to the! bondholders for the next 30

54 Investigation EIR July 30, 1993 years (as elaborated by Miguel Rodriguez, then planning The public debt minister) . In the event of default, the bondholders may go According to Finance Ministe( Pedro Rosas, the public to any court in the State of New York, in the United States, foreign debt since 1992 is $27.1 :million, calculated at an to sue the Republic of Venezuela as if it were any commercial exchange rate of 80 bolivars to th¢ dollar, or 2. 172 million entity. bolivars. The internal public debt is about 286 billion boli­ CAP also sank the national currency under the pretext vars. That is, after the famous regegotiation of the debt by of "economic freedom," and promoted a campaign against Pedro Tinoco and Miguel Rodrigu�z with Chase Manhattan exchange controls by presenting it as the equivalent of "cor­ Bank (which Tinoco has officially! represented in Venezue­ ruption." What hypocrisy! The first crime CAP committed la!), CAP increased the foreign de� by $2 billion. This, after against the state during his second administration was pre­ the Venezuelan government disp<$ed of the most valuable cisely to loot the last dollars available at the preferential state assets, such as the state telephone company CANTV exchange rate, for speculation and for use in a secret "black and others, in order to pay interest pn the debt. bag" account. The truth is that an unregulated exchange But aside from the public foreighdebt , there is the private rate, permitting systematic currency devaluations, served as foreign debt which, according to �e World Bank, is some an expeditious looting mechanism. Consequently, the value $7.3 billion. That is, the total fore gn debt that Venezuela's �. of our foreign debt in bolivars increased 600%. economy owes is $34.4 billion. Of course, that did not help Venezuelan exports, either, Given that the Venezuelan economy is valued in its na­ as CAP had also claimed. That was just another fraud perpe­ tional currency, and that the' Finance Ministry does the na­ trated on the citizens by CAP, who promised that free ex­ tional accounting in bolivars, we can report that Venezuela's change, trade openings, and the elimination of controls on total public debt is 2.458 trillion bolivars. This represents foreign investment would help to promote Venezuela's non­ 70% of the total national product of 1992. In relation to petroleum exports. The opposite occurred: The domestic the foreign debt in 1989, it represents an increase of nearly products Venezuelans could no longer afford to buy, were 600% . simply auctioned off abroad, thanks to the devaluation. But While the public internal debt is today estimated at 286 not even this increased exports. billion bolivars, during the first yearof CAP's administration The financial policy of high interest rates, promoted by it was 98.021 billion; that is, it increased 192%. However, then Central Bank (BCV) director Pedro Tinoco, was the this does not include zero coupon bonds issued by the BCV, other perverse mechanism used to accomplish the proposals which the Finance Ministry does not count as part of the of CAP and his political cronies. This caused disinvestment internal public debt, although in the final instance they rest in industry and agriculture, to the degree that for the first entirely upon the Venezuelan state's capacity to pay. In total, time in 80 years, Venezuela's installed productive capacity the public debt during CAP's administration has increased (the entirety of fixedcapital) shrank. That caused high unem­ 500%. ployment in the areas most critical to any country, such as the production of tangible goods, manufactures as well as Unemployment and marginality agricultural products. Yet, for the last 10 years, the world has considered Vene­ The net result was a deformation of the Venezuelan zuela "a middle-class country," meaning that the majority of social structure, concentrating income in a reduced percent­ the populace supposedly enjoyed an income that enabled age of families, while 80% of the people were reduced to them to meet their needs easily. Allbough that characteriza­ poverty, half of them well below the poverty line. tion was always a deceptive gene�alization, in comparison Productive employment was dramatically reduced, to with the currentsituatio n, there is nostalgia for better days. the degree that during the years of CAP's second adminis­ The fact is that from 1989 onward, the CAP economic tration (1989-93), some 40% of all workers were employed model destroyed the middle class� concentrated income in in the so-called "informal economy." Upon losing their the hands of 8% of the population, and plunged 80% of jobs, the unemployed have sought to find some way to Venezuelans into poverty, half with an income less than earn a living; most obviously, in the business of peddling­ 40,000 bolivars per month per family, and the other half with selling whatever they can to whoever may still have some an income of less than 10,000 boli\larsper month. buying power. According to a report by the Center for Growth and De­ But most dramatic has been the increase in drug traffick­ velopment Studies published in 1990, the middle class com­ ing, the growth of gangs of children, and the social dissolu­ prises 12% of the population, 36.3% of Venezuelans subsist tion that the economic package has caused. The billions of in relative poverty, and 44% are in critical poverty. The bolivars circulating through the Venezuelan financial sys­ highest class of the population comprises only 1.1% , and the tem-the only sector that has grown enormously-in the upper middle class only 6.6%. middle of a collapse of national production, can have no This income structurematches that of employment. Only other origin than drug trafficking. 50% of the working-age population have a relatively stable

Investigation 55 EIR July 30, 1993 the same time that they cheapen our products abroad, in order to make them more "competitiv6." The reality is that the privat6 sector has not significantly increased its exports, because there have not been invest- ments i roductive pla t. � � ? I BasIc mdustry contnbutes approximately two-thirds of all the country's non-petroleum expbrts. In 1991,exports of alu­ minum, iron, and chemicals genJrated 64% of non-petroleum exports. In 1992, that percentagb dropped to 62%, primarily because of the drastic 26.4% de�I line in exports of aluminum that year. Sales of aluminum and i.ron in 1991 constituted 52% of the total , and in 1992 this dro ped to48 %. Exports from other sectors the majority of which are private, have also fallen syste atically, and have not in­ T, creased their participation mucH beyond one-third of the to­ tal. This explains CAP's and theicreditors' interest in "priva­ tizing" the state's basic industries, despite the fact that they are supposedly unviable financiAlly. Bankers' boy Carlos Andres Perez, who isfacing trial on corruption charges. The narco-economy I The monster of the narco-ec0nomy has grown all-power­ job in the "formal" sector of the economy. Ten percent of ful, with the destruction of the rlation' s productive plant and the working-age population are unemployed, and 40% are the ruin of families by unempl6yment. Through the stock employed in the "informal economy," whose situation is exchange and concentration of b nking power, the drug trade impossible to know statistically. began taking over the Venezublan financial system, con­ The "market economy" imposed by CAP and his financial verting the country into the prinJipal money-laundering cen­ coterie serves only 7.7% of the population. This is the new ter in Ibero-America, attested tOl by the most recent report of social class that has established itself through profitsderived the United Nations Commissioni on Narcotic Drugs. But it is from speculative and parasitical activities on the stock mar­ not just drug money laundering; Venezuelan territory has ket, as well as from other less transparent services. been turned into a drug transs�ipment route to the United States and Europe. It has also ,een turned into a source of Trade imbalance drug-related jobs, and the drug Jraffickers and drug launder­ In 1992, the IMF package collapsed completely, even in ers have begun to champion themselves as a paradigm of its famous "macro-economic indices." For the first time in behavior through the mass medih. many years, Venezuela had to take dollars from its reserves With the headline "Venezuela Is the Major Money Laun­ to pay for imports and debt service. The imports, mostly dering Center in Latin AmericJ," the daily El Nacional on lUxury consumer goods, were some $12.4 billion, according Feb. 15, 1993 played up its co erage of the U.N. Commis­ l to the BCV. Moreover, the payments for debt service, com­ sion on Narcotic Drugs report, 'fhichwas presented that day bined with other services the country paid abroad, added up in Vienna. According to the rePfrt, a U.S. anti-drug agency, to $4.9 billion. In order to pay this, the country only had the the Drug Enforcement Administration (DEA), estimates that income coming from oil and other exports, equalling some in 1992 some 200 tons of cocainJ bound for the United States, $14 billion. Canada, and Europe passed th�ough Venezuela, of which At the same time, the BCV lists an unexplained $4 15 only seven tons were interdictJd in the first months of the million outflow-capital flight which they couldn't hide un­ year. It is estimated that billidns of dol1ars are laundered der any other category. annually. In all of 1991 , only ni e tons of drugs were seized. In sum, al1 of this left a deficitof $3.7 billion, for which In the commission's opinion, bdcause of the anti-drugoffen­ the governmentdid not get even the $2.67 billion borrowed sive in Colombia, Venezuela h�s turned into a key distribu­ from the IMF and Rockefel1er. And so they had no choice tion center for narcotics producbd in the Andean countries. but to take it from reserves. Berenice Gomez, a reporte� for El Nacional, consulted As we noted, the devaluations have not helped to increase various anti-drug experts in thb Technical Judicial Police, non-oil exports from the private sector. Nor have they helped National Guard, and Disip (Inte�ior Ministry security police) to reduce imports, because those who import are the few who concerning the U.N. commissi I n report, and the unanimous have high income and access to dollars, regardless of the opinion was that "Venezuela is a fiscal paradise" for drug exchange rate . The only effect of devaluations is to increase money laundering. "The fiscal facilities that the country of­ domestic prices and thus to reduce national consumption, at fers for large capital deposits ar comparable to those existing I

56 Investigation EIR July 30, 1993 in the Cayman Islands and Bahamas," stated El Nacional on More usury and more opening Feb. 16. One example of this, according to the consultants, As if all this were not enough,!on March 11, the BCV is the absence of obligatory notificationor reporting of suspi­ decided to make the regimen for determining interest rates cious deposits by the banking system to anti-drug authorities. "more flexible," meaning that from that date on, rates would There is no amount beyond which one must justify the origins be determined by the return on zeto coupon bonds, which of the deposit; to this, one would have to add banking secre­ in those days were yielding 50.9%. According to the BCV cy, which makes any type of financial investigation impos­ decision, the active rate cannot exceed 20% above the return sible. on zero coupon bonds, which put interest rates at 70%. The experts noted that since 1987 , construction of luxuri­ On March 23, at the 24th assembly of the Latin American ous tourist centers has increased in Venezuela, while the cost Bishops Conference (CELAM), Cabimas Bishop Msgr. Ro­ of living has increased in an exaggerated manner, reaching berto Luckert declared that "usury is a sin, and the govern­ millionaire levels. ment has legalized it by authorizing the bankers to charge Investigators stated that there is really no political or 70% interest." financial will to confront the problem, and suggested that On March 17, the eight foreign members of Venezuela's those businesses which conduct large financial transactions Foreign Investment Advisory ComJlnittee, headed by Henry have their books investigated, to determine the derivation of Kissinger, gave a press conference: on the conclusions that the transactions, because "the mere review of income taxes had been reached through a meeting with CAP and his plan­ would identify the existence of front men." ning, finance, and development ministers. According to one They also made reference to Finance Ministry statistics of them , Le Floch-Prigent, the committee proposed that CAP concerning the invasion of imported lUxury automobiles in impose in Venezuela the direct involvement of the banking the middle of a depressed economy, and indicated that under sector in allocating credit, minimizing the risks and making Decree 727, the Perez administration eliminated controls on interest rates flexible. James Robinson, former president of foreign capital, which can now leave the country without American Express and another committee member, ex­ paying taxes or giving explanations. pressed a similar opinion, saying that accelerated changes in According to the daily Ultimas Noticas of April 2, Gen. the country's financial laws and a reform of the General Aner Garcia Monagas (ret.), president of the National Com­ Banking Law to attract capital werea top priority. mission Against the Illegal Use of Drugs (Conacuid), admit­ On March 18, El Nacional reported that Finance Minister ted at the Vienna meeting that the international drug trade Pedro Rosas had announced that his office and the national has penetrated the country's basic institutions. Garcia Mona­ Congress agreed to reform the General Banking Law, instead gas said that "Venezuela is being used as a drug-transit coun­ of introducing the new bill which had been worked out with try," but he rejected the reports that presented Venezuela as the president of the Chamber of Deputies , Luis EnriqueOber­ a big dollar-laundering center. to. The reform would enable foreign!banks to participate with According to the Caracas press of April 16, the interna­ 100% of their capital, without any type of limitations. tional pressure reached such a point that, at the April 12 Rosas also announced that in the next Council of Minis­ meeting of the economic cabinet, it was agreed to instruct ters , a new law would be presented that would governsecuri­ Foreign Minister FernandoOchoa Antich to convoke a meet­ ties' activities under the same conditions as for foreign banks. ing with the finance minister, the president of the BCV, and the Banking Association, in order to determine the true Financial narco-reform magnitude of dollar laundering in the country. On the same The information from the U.N. Commission on Narcotic day, the press carried statements by Deputy Gabriel Nino, Drugs shouldn't surprise anyone, b¢cause it was predictable vice president of the Chamber of Deputies Anti-Drug Com­ that this would occur under CAP's regime. In late 1990, after mission who, after meeting with CAP, confirmedthat drug­ the CAP government announced plans to institute multiple laundering in the country equaled more than $4 billion a or "universal" banking and open up the financial system to month, a figure that struck the government as exaggerated. foreign investment, the secretary general of the Venezuelan Nino added that "there are individuals who have entered the Labor Party (PLV) and leader of the Movement for Ibero­ country offering companies, and even religious institutions, American Solidarity (MSIA) Alejandro Pena Esclusa, millions of dollars worth of deals, and no one knows what is warned that "thefinancia l reform Wlilltum Venezuela into a going on," except that it is not outlawed. narco-economy. " Commissioner Guillermo Jimenez, chief of the Orga­ Then-Superintendent of Foreign Investment Edison Per­ nized Crime Division of the Technical Judicial Police, sug­ ozo also warned that the firstconcr ete step toward setting up gested that there is much more than $4 billion worth of drug a narco-economy was taken Jan. 29, 1990, when the text of money laundering going on, because "our financial system is Decree 727 concerning foreign investment appeared in the used by the drug traffickers or by those persons who are Gazeta Offi cial (dated Jan. 26). That same day, then-Finance involved in money laundering, which can well be said to be Minister Eglee Iturbe de Blanco briefed a select group of the money from administrative corruption." Council of the Americas, headed by David Rockefeller and

EiR July 30, 1993 Investigation 57 Gustavo Cisneros, on the scope of Decree 727. With the vacant office buildings, as can be seen in the Chacao and EI modifications it entailed, he explained, "foreign investment Rosal zones, where the plan iSI to establish the Venezuelan will be able to operate without sp ecial authorizations in al­ Financial Center. most everyfield of activity that is deemed convenient" (em­ These developments were not unknown to CAP and his phasis added). cabinet, and Peiia Esclusa was not the only one to issue The new decree eliminated restrictions on profit remit­ warnings. Shortly before resigding from his position as Su­ tances on reinvestment, and on reexport of capital. Whatever perintendent of Foreign Invest�ents (SIEX), Edison Perozo limitations were imposed with respect to the Cartagena Pact gave a press conference on Feb. 21, 1990, at which he distrib­ (Andean Pact) were put to one side, and it set the basis for uted a pamphlet entitled "Venezuela, Opening to Invest­ the financingof technology and payment of "royalties" to the ment," in which he warned in clear and well-grounded terms home office and subsidiaries without need of prior authoriza­ that Decree 727 would pave the way for the "imposition of a tion . That is, since there were no limits on profitremittan ces, narco-economy . " payments for technology among home, branch, and affiliate Perozo's pamphlet explained that "the unrestricted offices were now permitted. opening to foreign investmentl could allow the imposition Decree 727 also eliminated the exclusive rights of nation­ and infiltration of the most inotorious dollar-laundering al companies to invest in public services, including electrici­ mechanisms, even more so in Venezuela's case where ty , telephone and telecommunications, drinking water and there is free circulation of capital, as an exception in the sanitation services in general , internal transportation of peo­ Andean Pact." ple and freight, publicity, and consulting services. Perozo gave various prop�etic examples of the tech­ Also eliminated was the restriction on internal trade of niques the drug trade could ust: "Since Decree 727 admits goods, export services, and the transport of stocks and docu­ the establishment of subsidiari¢s of foreign businesses, one ments. of these companies belonging to the international drug trade could easily register, and once the capital of the subsidiary is The coca dollar market brought into the country, couldl distribute and remit the total With the opening to foreign investment, the hoped-for profits to the home office, given that the remission of divi­ billions of dollars for investment in productive plant for in­ dends is authorized." SimilarlY.,"another example could be dustry and agriCUlture never arrived. What arrived, as had the direct investment of the drug trade in some economic been warned, was speculative capital in search of quick activity and the possibility of reinvesting.the profits, that is, profits through the recently created "capital market" in the capitalizing the surplus. The purchase of stocks on stock Caracas Stock Market. markets, or the payment of royalties among non-related busi­ The aspect of Decree 727 that has been most exploited nesses, thus is equally authorized. The examples abound, by the drug money launderers during the past three years has as unlimited as the imagination and operations of the drug been the elimination of the requirement for authorization for trafficking network that has cast its eyes on Venezuela." foreign purchase of stocks of national or mixed companies. The precise functioning of the drug economy was re­ And the means by which narco-capital has freelyentered and vealed by suspected drug trafficker Adolfo Ramirez Torres, left has been the stock market, under the impetus of Pedro a former governor of the federall district, when he testifiedto Tinoco from the BCV. the Technical Judicial Police ,that "Cali Cartel" trafficker Tinoco's financial and monetary policy was centered on Julio Ramirez told him of the existence of a "large network the issuance of the famous "zero coupon bonds," which be­ of businessmen protected by Venezuelan politicians" who gan to be sold on the stock market. These instruments allowed are buying "businesses experienced in exporting asphalt the banks-which with their high interest rates had increased products, canned foods, furnitUre, skins and prefabricates, their deposits, but were unable to place them as loans-to all used as a front for transportipg large quantities of drugs. " have something to invest those deposits in. With the zero Ramirez Torres said that he had told Gen. Ram6n Guillen coupon bonds, the BCV helped create the "stock index," Davila (former commander of the anti-drug group of the which permitted transactions worth billions of bolivars every National Guard) about a large cargo of cocaine. "Perhaps month, without ever having anything to do with production. Guillen Davila did not believe :me," Ramirez Torres told El Afterwards, the stock market began to sell and buy com­ Diario de Caracas. "One day after my arrest [Aug. 14, pany stocks, whose prices began to rise without any connec­ 1991], the network thought ofisending 20,000 kilos of co­ tion to the companies' economic performance. The buying caine. Imagine it. That's a billion bolivars. The drug was and selling of stocks, papers, etc. served only to facilitate the already there in Venezuela. But they arrested and disarmed circulation of enormous amounts of money. Vast amounts of me .. ..[They say] that they feel secure because lam impris­ foreign capital were coming in as easily as they were going oned. With the money from that operation, they were plan­ out. From the stock market, some of these already-laundered ning to actively participate in the privatization process" (em­ profits are going on to be invested in luxurious, currently phasis added).

58 Investigation ElK July 30, 1993 In late 1991, the United States seized a comparable quan­ finally, was transferred to the brapch of Banco Latino at tity of drugs, which had been sent from Venezuela on the Curac;ao. According to the investigations, it was then trans­ Danish ship Mercadian Continent. The cocaine was pack­ ferred-yet again-to the Miami branch of the same bank, aged in blocks of concrete by the Tranca company. It was through a bridge provided by Chase Manhattan in Miami." later learned that this company was tied to various import­ The Pique Imports case was not the only instance discov­ export firms; the export firms were sending the drugs, and ered of money laundering through '�export bonds." In state­ the import firms were sending payment for the drugs in the ments made to El Diario de Car(Jcas on Oct. 13, 1990, form of imported home appliances. In that one year they then-Finance Minister Roberto Poqlterra confirmed that the imported $700 million worth, one-thirteenth of that year's companies "Urraca Trading" and "I1undici6n Venezolana de imports by a single consortium. Metales Pesados, S.A." (Fuvemepe), owned by Milton Pire­ The same Danish ship had already transported a quantity la, were investigated for "export b�nd" fraud. and also be­ of cocaine packaged in containers of industrial glue, in a cause two individuals linktsed laws and got them the newspaper, Pique Imports collected part of the sum of enacted, and issued decrees such as 727. As the denuncia­ 400 million bolivars corresponding to "export bonds" for a tions of multimillion-dollar drug mqney laundering in Vene­ supposed export of razor blades to Spain that never took zuela were filtering across our borders, CAP declared: "The place, but "they were paid in dollars through transfers carried problem of dollar laundering is that 'Vedon 't have any legisla­ out by the Banco Latino branch in Miami to the Banco Latino tion that makes it a crime. We a� hoping that Congress in Venezuela, to the account of Pique Imports in Caracas. approves a law which we submitted some months ago ...

Once the deposit at the bank was made, it was registered as and when we have the law, we willibeI able to deal with this foreign exchange, went to the foreign exchange market and, serious problem" (El Universal, Majrch 4, 1993).

30, 1993 59 EIR July Investigation • �TIillNational

Declare national emergency to recover from flood'

by Marcia Merry

Because of the persisting rainfall in the upper Midwest can these bills of materials for infrastructure be supplied? throughout July, the devastation from flooding and water­ Some say they shouldn't be supplied. The three most logged land in the Mississippi-Missouri upper watersheds foolish approaches you hear and see most oftenfrom govern­ continues to mount by the hour. A typical example: On July ment, media, and many of your own non-think neighbors 17, the Baraboo River in Sauk County, Wisconsin rose by are: 10 feet in five hours during a storm lasting over two days, 1) There's no money, so 'don't rebuild. That is what during which fully 7.78 inches of rain fell during one three­ budget director Leon Panetta Said on July 16 in response to hour stretch. requests from the the ChicagoiMidwest Governors' confer­ Even before the time when things finally "dry out," and ence, where lawmakers called for cash grants, not relief aid. a full damage assessment can be made, it is clear that restor­ The same line oozes from Lobdon financial circles, where ing this area to productive habitation will require much more the July 17 Economist wrote, '!Everyone agrees that there is than heroic relief efforts; it requires declaring and acting on no point in building more or bigger flood-control systems, a nationwide economic emergency. As of now, the decrepit and, these days, there is no money for them." U.S. economy simply does not have the output potential to 2) There is the appealing ntionthat , somehow, ifwe all produce the physical goods needed to rebuild and improve just pitch in, shoulder to shoulder, and send bottled water, the water resources system of the country . buckets, and bandages, things will all tum out okay. "Some­ In mid-July, James Lee Witt, head of the Federal Emer­ body, somewhere, will take care of things." gency Management Agency (FEMA), stressed the vast infra­ 3) Finally, there is the New York Times-led line that wa­ structural damage to public works, when he made a visit to terworks and floodcontrol wert bad from the start, since they the town of Black River Falls on Wisconsin's Black River. violated the river's sacred rights to flood; therefore, not even He said, "They found 5,000 feet of their sewer system had one new levee should be built. · collapsed from the flood waters . I'm just telling you we're The last idea may be the most immoral, but all these going to have a lot of infrastructural damage. Roads have approaches are hopeless: been under water for weeks and their bases are soft. Electrical • Money. No matter how much Panetta and Congress try wiring and electrical systems have been ruined. It's very to cut spending and save money, there will be no budget early in this disaster. " balancing if there is no economy and no tax base. The rebuild­ Billions of dollars in damage have been done to bridges, ing requirements for the Mississippi-Missouri upper basins sewer lines, ports and storage facilities, locks and dams. dramatically illustrate how taclding the needed refurbishing Thousands of tons of finished goods are needed-pipes, and infrastructure improvements all around the country can valves, motors , electrical wiring, construction material, fix­ provide that economic tax baseL Millions ofjobs , and billions tures, and also huge amounts of rock, gravel, sand and other in taxable income would ensue. In contrast, not undertaking raw commodities. Yet the U.S. economy has been shutting rebuilding will just crash what's left of the economy even down capacity right and left while government leaders prate more quickly. foolishly about the "unique growth" phase we are experienc­ • Mother Earth. The anti-levee lobby led by New York ing-"the economy is growing, but there are no jobs." How Times opposes human civilization on principle. A July 18

60 30, 1993 National EIR July • Times feature on the floods ran a full-width photo of Iowa must dry out first, and problems IUise at the bridges . farmland under water, with the headline, "The Mississippi • Bridges. Hundreds of bridgesihave been knocked out. Reclaims Its True Domain." At one point, there was no crossing iover the Mississippi for • Just send relief. Thousands of people are tirelessly close to 300 miles on the western Illinois shore, because 14 pitching in to aid flood-strickenareas , and millions of people bridges were out. Since then, the Keokuk bridge has been are sending contributions. That's fine for emergency mea­ restored. These bridges will all ha�e varying damage. The sures and small repairs, but it won't rebuild destroyed sew­ Mississippi-Missouri has 141 tributaries, dozens located in ers, roads, bridges, locks, and dams. the rainfall zone, with hundreds of bridges now unusable or To deter anyone from mobilizing for a full-scale infra­ unsafe. structure development approach, the establishment powers • Rail. The Mississippi-MissoJri system bifurcates the have deployed Hollywood, the major media, and "approved heartland of the United States, and: the main east-west rail alternative politicos" such as Ross Perot. On July 19, Perot lines cut run through the floodzone , and the north-south rail visited the Salvation Army center in Alton, Ill., met briefly lines frequently follow the river v�leys. These are all in with Mayor Bob Towse, and told the media, "These are various states of damage. strong people. They'll be here when the water goes down. • Power. Many power plants ar� located along the rivers There's no question about that ....I'm here today at the or at rail points, and they rely on tht1 flow of coal-much of request of all the members of United We Stand America. All which comes by waterway down tile Ohio River from the of our members and volunteers along the river have volun­ coal-rich Appalachians, or by rail frqmthe sulfur coal depos­ teered to help the people who have problems." He said noth­ its in the west. These power stationsltypically have at least a ing about a battle plan for reconstruction. Likewise, John three-month lead, but the waterway travel will be disrupted Mellancamp, a performer sidekick of Willie Nelson, the fig­ at least that long. urehead for FarmAid, staged a benefit concert in Chicago, Critical parts of entire electric distribution systems are for "FloodAid." damaged: power lines, transformers, and otherinst allations. Meanwhile, the media are either churning out mind­ For example, a 62-mile length of 1325 transmission lines numbing "human interest" flood stories, or, in the case of which supply 60% of the power in LiJilcoln, Neb. was brought ABC's "Good Morning America," are fomenting racial ha­ down by 100 mph winds and thunjierstorms. Utilities are tred. "Why aren't blacks seen out on the lines sandbagging now buying from low-voltage lines. This was a major link in at the levees?" ABC's Diane Richardson provocatively asked power grid which must be rebuilt, but they say this cannot the anchor of a local radio station in Des Moines, Iowa. occur until next year. "Many people are coming to the belief that the black commu­ • Waterway installations. The f�mous "stairway" of 27 nity shouldn't be allowed to get any water or any help, since locks and dams that runs from Minneapolis down to St. Louis they don't see black faces on TV at the levees helping. Why will need refurbishing from water and debris damage, as will are blacks sitting back?" various port facilities all along the river. • Sanitation. Scores of towns h�ve lost use of their cen­ Vast infrastructure breakdown tral water treatment and/or sewage treatment facilities. The The area covered by either floods or waterlogged land most famous is Des Moines, whel'Cl 250,000 residents had extends to large portions of 222 counties in six states-Iowa saw their 800-mile city water pipe! system dry up, when (all 99 counties are official disaster zones), South Dakota, floodsoverran the central treatment plant. The sewage treat­ Minnesota, Wisconsin, Missouri, and Illinois, along with ment plant in Cedar Rapids also shutidown. significant areas in adjacent states, including Nebraska and Kansas. Stop the insanity Apart from flooded homes, crops, factories, stores, Rebuilding from the flood will �uire an about-face in schools, and governmentbuildin gs, think for a moment about EIR current thinking in Washington. In � interview with on the ruination under way of essential public infrastructure­ July 21, former presidential candiqate Lyndon LaRouche power, water, transport and health . stressed that there will be no economic recovery-from the • Roads. The Army Corps of Engineers is keeping floodor from anything else-until tile budget-cutting mania lists of key transport routes knocked out, and the list in Washington is halted and his prowsal for national credit­ runs for more than four pages for the state of Missouri creation through a new national bank is implemented. "The alone. As of July 22, Interstate 80 between Cedar Rapids attempt to balance the budget will ",ake things worse, not and Iowa City was still closed, but a section between better. If you want to balance the budget, do it the way I Iowa City and Des Moines re-opened. Drying out does proposed during the recent election campaign. . . . But if we not necessarily restore the road for use. Roadbed slippage do it [Federal Reserve Chairman Nan] Greenspan's way, and slumping typically knock out travel, especially on that is like going into a closet, puttin� a gun not to your head, older rural roads, built before soil mechanics were under­ but to your belly-an automatic pistql, perhaps an Uzi-and stood. The modern interstates will fare better, but they setting it off, and dying a slow and p�nful death as a nation."

30, 1993 EIR July National 61 the Anti-Defamation League df B 'nai B'rith (ADL) and the LaRouche Appeal Cult Awareness Network (CAN). The governmentand pros­ ecution team knew that the case against LaRouche was a fraud from the beginning. The judge who ran the railroad knew that the case was a frau(l. LaRouche has remained in prison nearly five years solely because these parties continue to tolerate this travesty of justice. While in the Washington, D.C. circuit there has recently been legal relief against the Fourth Circuit kills bias and misconduct of the Federal Election Commission (FEC), injustice reigns in the Fourth Circuit. Recently a Washington, D.C. Appeals Court ruled that oral argument the FEC was in flagrant violation of the law for using its subjective bias against LaRouche as the basis to deny him In a blatantly political decision masquerading as procedural matching funds in last year's presidential election. In 1981, efficiency, the Fourth Circuit Court of Appeals on July 14 New York Judge Charles Brieant wrote in another LaRouche "screened" Lyndon LaRouche's motion for freedom appeal case that the FEC was guilty df "the most abusive visitation from the oral argument calendar. The matter before the court of bureaucratic power" against LaRouche that he had ever was an appeal of a biased decision by Judge Albert V. Bryan seen. This is the same FEC which ruled that the ADL had to deny LaRouche's bid for freedom, based upon six volumes violated the law against LaRCI)Uche campaigns in the mid- of new evidence, without even so much as an evidentiary 1980s, but it was okay because the ADL was a beneficial hearing. organization, while LaRouche, in their biased view, was a The Fourth Circuit ruling now means that, again, without dangerous menace to the body,politic. a hearing, the three-judge appeal panel assigned to his case will issue their final ruling based only on the written papers International diplomatic scandal submitted. The decision to deny a hearing comes after the Depriving LaRouche oftM righteven to a public hearing, Fourth Circuit kept the case in suspended animation month is a direct slap against all the people around the world who aftermonth , as explosive tapes and masses of other evidence have acted on this case-from parliamentarians to jurists to proving LaRouche's innocence were filedbefore them. governmentofficials and artists, as well as ordinary citizens. LaRouche's attorneys, Ramsey Clark and Odin Ander­ Only two weeks before the Fourth Circuit decision, for son, won't even be allowed to argue the meaning of the new instance, a prominent ad appeared in the Washington Post in evidence, as the Appeals Court communication states: which 270 parliamentarians andlegisla tors from 26 countries ". . . the court has screened this appeal from the oral around the world publicly called on President Clinton to argument calendar. The appeal will be reviewed by a three­ "Free Lyndon LaRouche" and end the political persecution judge panel on the basis of the parties' briefs, the joint appen­ of his movement. The legislators came from 11 nations in dix and the record on appeal ." Europe , three in Asia, one in the Middle East, six in Ibero­ The three-judge panel on the case is the same one which America, and cities and towns across the United States and previously denied LaRouche's appeal of his conviction, de­ Canada. The seven-paragraph text which all these parliamen­ spite the fact that nearly 1,000prominent American and inter­ tarians signed drew attention to the fact that the judicial and national jurists submitted amicus briefs highlighting the gross human rights abuses in the LaRouche case were outside all injustices. Political prisoner LaRouche, who has been in pris­ international fair trial standards and the subject of formal on nearly five years, filed his new evidence motion for free­ complaints before the Human Rights Commission of the dom over one and a half years ago, in January 1992. The United Nations in Geneva, the Organization of American Fourth Circuit has completely ignored an emergency request States, and the Conference on Security and Cooperation in filedat the beginning of this year to appoint a Special Master Europe (CSCE). They concluded: to investigate systematic government corruption, flagrant "It is our understanding that throughout his public life bad faith, and outright fraud on the court. LaRouche has been a defender of the right to sovereign devel­ opment of all nations on this planet, and of the inalienable Why they fear a public airing rights of all men and women. For those reasons, Mr. Presi­ The evidence before the Fourth Circuit shows that not dent, we ask you to take prompt and resolute action to repair a shred of the original case against LaRouche is left. The this injustice, by immediately freeing Lyndon LaRouche." accusations against him were concocted by a "concert of Two weeks later, in a decision of utmost judicial arro­ action" among various governmentagents such as the notori­ gance, the Fourth Circuit issued its ruling that the case does ous former sheriff' s deputy in Loudoun County, Virginia, not even merit a public hearing, a decision which is a gross Don Moore, and private anti-LaRouche hate groups such as insult to all standards of internationaljurisprudence .

62 National EIR July 30, 1993 conspiracy and that somehow this will get out of control Book Review unless it is stamped out at a very early stage." A juror on the Weaver trial said that federal prosecutors "built their whole scenario out of how they perceived some­ one else should be living their lives, and if someone believed differently ...they must be abnormal." The LaRouche case stands out as evidence that the U.S. Witnesses for legal system, especially on the federal level, increasingly came to resemble a fascist police state during the 1980s. the prosecution The persecution of LaRouche and his associates provides a paradigm for investigating the injustices of the Reagan-Bush by Harley Schlanger years. Within the United States, LaRouche was targeted by pri­ vate organizations, in particular the Anti-Defamation League (ADL) and the Cult Awareness Network (CAN), which im­ posed their anti-LaRouche agenda on federal agencies. Wall Inside the Cult by Marc Breault and Martin King Street speculators joined high-level officials of the Justice Penguin Books. New York. Department, FBI, Bureau of Alcohol, Tobacco and Firearms 1993 375 pages. paperbound. $4.99 (ATF), IRS, some state attorneys general and corrupted ele­ ments of the media to establish a national "Get LaRouche" task force, which harassed associates and supporters of LaRouche and maintained a constant barrage of lies and slanders. Once they had poisoned the public mind against See No Evil: Blind Devotion and Bloodshed in David Koresh's Holy War LaRouche, a 400-man multi-agency task force descended by Tim Madigan on LaRouche headquarters in Leesburg, Virginia, complete The Summit Group. Fort Worth. Texas. 1993 with tanks and helicopters, on Oct. 6, 1986. Among the units 300 pages . paperbound. $11 .95 deployed was the Hostage Response Unit of the FBI, from Quantico, Virginia. It was only due tQ an eleventh-hour com­ munication by LaRouche to Reagan that a bloodbath was On July 2, the U.S. Court of Appeals for the District of averted, as agents who took part in the raid subsequently Columbia ruled that the Federal Election Commission (FEC) admitted. Arrests were made, and the!press dutifully cranked was wrong when it denied Democratic Party presidential out new, more vicious attacks in the tradition of "trial by candidate Lyndon LaRouche matching funds for his 1992 press." campaign. The court concurred with LaRouche's attorneys, The activity of the "Get LaRouche" task force assured who argued that the FEC violated its statutory mandate by that LaRouche and his associates would not receive a fair withholding funds from the campaign. trial. The "rocket docket" in Alexandria, Virginia gave his On hearing of the verdict, LaRouche, who is a political lawyers less than one month to prepare for the trial, while prisoner, described it as "an indication, one glimpse, of the prosecutors, working closely with the ADL and CAN, ille­ possible peek of justice, coming under the pressures of a gally withheld exculpatory evidence, tampered with witness­ great crisis. " es (including, for example, "deprogramming" a former mem­ Less than one week later, on July 8, Randy Weaver and ber), and pumped out more lies to thei obliging press. Before Kevin Harris were acquitted by an Idaho jury of charges Judge Albert Bryan, Jr. , who demonstrated bias against which included the murder of a federal marshal. Much of the LaRouche throughout the trial, it wa� a foregone conclusion press commentary on the verdict centered on the growing that, though innocent, LaRouche would be convicted. backlash against law enforcement agencies and prosecutors, The modus operandi employed by the government as many citizens fear their basic constitutional rights are against LaRouche has since been deployed in other cases, under assault. with the Weaver case as an example� Once government ac­ Tony Cooper, a terrorism expert at the University of tions, including the murder of Weavet's 14-year-old son and Texas at Dallas, expressed this sentiment to the Washington wife, and the death of a federal marshal, provoked a standoff, Post. Cooper said, "I see the formation of a curious crusading almost 400 agents surrounded Weaver's house. During the mentality among certain law enforcement agencies to stamp trial, the prosecution tried to cover up for the killing ofWeav­ out what they see as a threat to government generally. . . . er's son and wife, arguing that they were political and reli­ It's an exaggerated concern that they are facing a nationwide gious extremists who first prophesied, then sought, a holy

National 63 EIR July 30, 1993 war against federal agents. ulating others, "getting women," etc. This was countered in the trial by Weaver's lead attorney After leaving Waco, he m�ved to Australia to challenge Gerry Spence, who accused the prosecutors of trying to Koresh's hold over the Australian members, becoming a "demonize" Weaver "so that they could cover up the murder self-proclaimed "cultbuster." He made up stories to shock of a boy shot in the back and a woman shot in the head." members into leaving: "I wanted to get their attention, so I This background is essential to understand the bloody decided to shock them." On one occasion, he told them that events precipitated by the ATF and the FBI in Waco, Texas, Koresh was planning to carry out a human sacrifice. Though which left at least 86 members of the Branch Davidians and he admits this was for shock Value, to "weed out the break­ four ATF agents dead. From the beginning of the ATF's aways" he couldn't trust, this story found its way into ATF investigation of David Koresh, to the fieryend of the siege at files, and was presented by an ATF agent to the press as a the hands of the FBI, many of the same forces, both private reason for moving against Koresh! (ADL and CAN) and government (including the brainwash­ Breault also takes credit for the stories that Koresh was ers of the FBI's Behavioral Sciences Unit and the hit squads preparing a bloodbath against the people of Waco, or a mass of the Hostage Response Team), which ran the "Get suiCide. In a letter he sent in ¥arch 1992 to Michigan Con­ LaRouche" team, were involved. gressman Fred Upton (R), he predicted "that over 200people Even before the finaldeadly assault of April 19 , questions will be massacred next month.' ...Each day brings us closer emerged about A TF strategy and tactics. Experts accused the to Jonestown." Again, ATF Qfficials desperate to cover up A TF of poor planning, of acting like "storm troopers," and their blunders relied on Brea�lt's tall tales to defend their of being over-zealous in search of press acclaim. EIR identi­ actions in the post-raid press cj:mferences. fiedthe role of CAN in manipulating the A TF to launch the The only useful aspect of King and Breault's tale is that raid, through their quack psychiatry, "documents" extorted it confirmsthat law enforcemebt authorities, especially those from "deprogrammed" former members, and a furious letter­ from Waco who knew KoresQ, did not believe them. They writing campaign, supplemented by stories planted in the state, "The grim irony is that the ATF was the only U.S. law press. Lawyers for Koresh and others were convinced that, enforcement agency that took Marc Breault seriously." Grim based on evidence of ATF bungling, they could get their irony, indeed! clients off. There is another inadvertent admission of Breault which For the government, the firewhich consumed both people sheds light on the role of C�N. In his diary of the final and physical evidence was a blessing in disguise. Since the pre-raid days, he notes that lick Ross, one of CAN's top FBI has faced questions about why they took steps which led deprogrammers, was scaring tJIefamily of Koresh lieutenant to 86 deaths to "stop child abuse" or "enforce respect for the Steve Schneider into hiring him to kidnap Schneider. Ross, law," the fire may have saved them from an embarrassing a convicted jewel thief who Wlas chargedwit h kidnapping in repeat of the Weaver trial. Washington State on July 1, 1993, is the hero of See No Evil, a book written by Fort Worth Star Telegram reporter Tim The prosecution's case Madigan. For now, the prosecution's case is being presented in Not surprisingI y , Madigan never reportson Ross's crimi­ tabloid-style narratives, paste-up rush jobs cobbled together nal background. Instead, he proclaims himself to be "hope­ by those most responsible for the string of catastrophes which lessly in his debt" for his aidi in preparing the book. (Does culminated in the blazing holocaust. Among the firstto ap­ this mean Ross may be contac�ing him for bail money or legal pear (coming out less than six weeks after the tragedy ended) fees, as he follows fellow C,",N deprogrammer Galen Kelly is Inside the Cult, a piece of self-serving nonsense written by into jail?) Madigan fully defends the FBI's line on the final Martin King, an Australian reporter, and Marc Breault, a assault, that "it had become �pparent the more conservative former member of the Branch Davidians. course, further negotiation, was pointless," i.e., that every­ Breault joined Koresh in 1986, a graduate of a Seventh­ one had to die. Day Adventist school with little hope of becoming a minister Madigan does provide useful informationon Ross's role, in the church. As he tells it, "I was leftstranded with no job confirmingthat he was a majorsource for the Waco Tribune­ prospects and a useless degree." Upon recruitment to the Herald's series on Koresh, Wlhich provided copy for the na­ Branch Davidian sect, he claims to have risen to become tion's newspapers, and that he worked with A TF in preparing the "right-hand man" of David Koresh, the "most important for the raid, beginning in Jamllary 1993. person in the life of cult supremo Vernon Howell ...his To allow reporters to make Breault and Ross the heroes back-stop, his confidant, his troubleshooter." Due to his al­ of Waco would be to ensure that the United States would leged closeness with Koresh (none of the survivors remem­ continue down the path of a fascist police state. If we are to bers Breault holding such an exalted position), Breault says achieve more than a glimpse, or a peek, at justice, then the he often held private conversations with Koresh, at which role of CAN and the ADL in pervertingour system of crimi­ times Koresh confided in him on matters pertaining to manip- nal justice must be exposed and put to an end.

64 July 30, 1993 National EIR regional officesto interfere in the San'Francisco police probe, several sources close to the ADL have indicated that this memo triggered the firstphase of the league's "damage con­ trol" effort to stymie the SFPD investigation.

Damage control in the black community Did ADL try to impede Another priority targetof ADL "damage control" was the black community, especially civil tights organizations like San Francisco probe? the National Association for the Advancement of Colored People (NAACP). Shortly after the release of 800 pages of 950 by Jeffrey Steinberg investigative material , including a list of groups spied upon by the ADL, League officials put out another memo, instructing their regional officesto launch a "fence mending" A West Coast newsletter on Middle East affairshas published outreach to the NAACP in particular. excerpts of a pair of Anti-Defamation League of B 'nai B'rith The May 5, 1993 memo was penned by Ann Tourk and (ADL) internal documents that suggest that even after Charney Bromberg, the ADL's direqtor of Intergroup Rela­ police raided ADL offices and carted off incriminating evi­ tions. This memo read in part: "Many of you have already dence of illegal spying, League officialsattempted to stymie reached out to local branches of the NAACP; those of you the criminal probe using informants inside police depart­ who have not done so, particularly where you have a personal ments. relationship with the local director, should do so now. The Feb. 25, 1993 memorandum, which ADL officials "The contact should be for the pUl!poseof 'touching base' have confirmed was a genuine League document, was written but clearly, if the topic of San Francisco arises, your response by Civil Rights Division head Jeffrey Sinensky and Commu­ should be quite direct -'You know we're in the business nity Services Division chief Ann Tourk, and was addressed of monitoring extremists, not our friends in the civil rights to the ADL's 30�odd regional directors. The memo stated in movement.' part: "We are aware that theSa n Francisco Police Department "We're most interested in getting a picture of how this has written to several law enforcement jurisdictions through­ issue is playing among your intergroup contacts and coalition out the country advising them that material from their depart­ partners . Please call to give us your assessment-good, bad ments has been found in filesgathered in connection with the or indifferent. " Gerard investigation. [Former San Francisco police officer Tom Gerard is scheduled for a hearing on July 23 to deter­ Spying on Rev. Martin Luther King, Jr. mine if his case will be sent before a jury-ed.] This letter ADL officialswere painfully aware by early May, when has not been shared with us, and so it is unclear whether the the initial results of the San Francisco spy probe began to letter refers to files found at Gerard's home, ADL files, or circulate among political layers from coast to coast, that other material. We do know that the SFPD contacted the they had a big problem. One former r\DL employee, Henry Phoenix and Portland police departments and other unknown Schwarzchild, now with the American Civil Liberties Union, jurisdictions. . . . had come forward to reveal that he had quit the League after "You should be aware that your local law enforcement he discovered that the group was spying on Rev . Martin may have received such a letter; do not make any independent Luther King, Jr. , whom the ADL considered "sort of a loose inquiries regarding that correspondence. If, however, you cannon. He was a Baptist preacher and nobody could be quite learn of any contact by the SFPD in your area, please let us sure what he would do next . The ADL was very anxious know." about having an unguided missile out there. " In one ofthe depositions released to the public by the San To compound matters, the Village Voice, a widely read Francisco Police Department on April 8, 1993, former ADL New York City left-of-center news: weekly, has recently fact-finding department employee David Gurvitz described published its second lengthy article� on the ADL's spying the ADL's internal "coded language" for transmitting in­ activities in its July 27 edition. The piece, by Robert I. Fried­ structions and conveying information illegally obtained from man, exposes the ADL's role in attempting to impose strict officialsour ces, including police officers. According to Gur­ censorship on American libraries and universities that make vitz, who was firedby the ADL after he was caught soliciting available reading material on the Middle East. Friedman re­ a violent attack against an employee of the rival Wiesenthal ports that the Chicago Police . Depalltment is conducting a Center by white supremacists, ADL documents referred to serious probe of ADL spying in the Midwest, paralleling the material illegally obtained from governmentofficials as "in­ San Francisco probe, which is expe¢ted to result in indict­ formation from our officialfrien ds." ments against some ADL officials before the end of the While the Feb . 25 memo did not overtly instruct ADL summer.

National 65 EIR July 30, 1993 Interview: Lewis du Pont Smith

'Dare to be as courageous as S\Veden's King Gustavus III' The fo llowing interview with Lewis du Pont Smith, a Du Pont fight for better economic and conditions for man- heir and an associate of Lyndon LaRouche, first appeared in kind. In Stoppa Knarket our have learnedabout the the Swedish anti-drug magazine Stoppa Knarket (War on harassment against you from family and the authorities Drugs). Mr. Smith has been touring Europe and the United after your decision to expose networks that run the drug States to dramatize the book Travesty, which tells the story trade internationally. But it did end there. Last year, your of the Anti-Defa mation League (ADL) and Cult Awareness family even collaborated with group of criminals in order Network's (CAN) aborted plot to kidnap him and his wife to kidnap you. How did you to know about that plot, and Andrea Diano-Smith . He was interviewed by Lotta-Stina how did the trial against the end? Thronell. Since my Smith: wife and I have refused to be morally broken, my family has to work directly with crimi- Q: You just participated in a very successful event in Phila­ nal thugs in the A League and the so-called delphia during the Fourth of July weekend, around the idea Cult Awareness Network. My last summer, contract- of carrying out a second American Revolution. Why do you ed to have my wife and me and brainwashed, and think that is necessary? hired Galen Kelly and Moore to do the job. Galen What Rev. James Bevel and many other organizers Kelly is now in jail for kidnapping, which involved Smith: accomplished in Philadelphia with the Declaration of Inde­ Donny Moore, who was a officerof the U.S. govern- pendence Co-Signers' Convention, is of paramount impor­ ment and an errand-boy for "Get LaRouche" task force. tance for saving the United States. The American Revolution He solicited Doug Poppa, a undercover narcotics de- is based on a unique document, the Declaration of Indepen­ tective who worked for the Loudoun County, Virginia dence. Through the sacrificeof many ordinary citizens, and sheriff's department as Poppa, an honest cop, went the brilliant leadership of a few great men, we were be­ to the FBI and told them he been solicited to commit a queathed a citizens' republic under the law of God. As Benja ­ crime. When Galen Kelly mentioned, the FBI took no- min Franklin emphasized, and as Reverend Bevel and Lyn­ tice, since they were already vestigating him for another don LaRouche have emphasized, the preconditions for this kidnapping. Poppa agreed to as an undercover FBI infor- unique experiment in self-government, to survive and to mant, and pretended to go with the kidnapping plan. prosper, are for its citizens to be literate and informed, and He was "wired for sound" a concealed tape recorder. to be guided by moral virtues, to seek the common good. Sixty hours of FBI tapes and wiretaps Thirty years of the New Age counterculture under the on my father's phone were rpr'·hr/ipri sponsorship of the Anti-Defamation League of the B'nai At a certain point last , my wife Andrea and I B'rith , with the aid of the establishment news media and the were informed of this ' by the FBI, and we were satanic Hollywood entertainment industry, have destroyed asked to cooperate. With apprehension, we agreed, as the moral preconditions for our nation's survival. Therefore, we had no other choice. , in September, this gang of Reverend Bevel has organized a historic process of re-dedi­ criminal thugs, including my father, was arrested cating America to the principles of the Declaration of Inde­ ajury in the same Alexandria, pendence. Virginia court where was railroaded. This time, If America does not fundamentally change, and very the guts of the "Get task force was on trial. They soon, for the better, the world is surely doomed to a Dark were caught in their own ; but the judge, Timothy Age-and perhaps even World War III. Ellis, sympathized with my and in order to protect the government's railroad of La." vu\",,

66 National July 30, 1993 EIR ed the jury on conspiracy law. So while these thugs got off Travesty Smith: is about to be published a second time. On scot-free, LaRouche-an innocent man and statesman of our our recenttwo-week tour in the Midwest of the United States, time, whose leadership is desperately needed-sits in jail. Andrea and I were featured on several radio stations. We met However, there is good news. At least one honest U.S. with state legislators and chiefs of police. There was a genuine assistant attorneyin the Justice Department, Lawrence Leis­ concern with the ugly state of affairs in the United States that er, is pursuing the Cult Awareness Network and its gang we described. In Des Moines, Iowa, we met with an extraordi­ of kidnappers and brainwashers. Galen Kelly, long a top nary group of Muslim activists, who own a local radio station, kidnapper and deprogrammer-brainwasher for CAN, is now KCUB . They featured us for three hours in open discussion. a convicted felon. Rick Ross was the adviser to the Bureau This group and their imam is working closely with the of Alcohol, Tobacco and Firearms (ATF) when they stormed LaRouche movement, and has initiated the campaign in Des the Waco, Texas group, the Branch Davidians , and killed Moines to bring down the statue of Albert Pike, the founder over 80 innocent people, including many children. Ross, a of the Ku Klux Klan, in Washington, D.C. They have exposed convicted jewel thief, was recently arrestedfor a kidnapping the ADL ruthlessly on their radio stttion, and they are now in Washington State, and is sitting in jail. Ross was the labeled a "cult" by the so-called cult experts, CAN. These second most important kidnapper in CAN's stable of thugs. brave fightersfor humanity are studying Nicolaus ofCusa and The most important development is the public release of [Friedrich] Schiller, and seek concordance with Christians of the 60 hours of FBI tapes on the du Pont Smith kidnapping. good will in the tradition of the 1439 �ouncil of Florence , the The Attorney General of Minnesota, Hubert ("Skip") Hum­ event that launched the Golden Renaissance in Europe. It is phrey III, the son of a former U.S. vice president, is impli­ our purpose today to launch an even greater renaissance, as cated in the tapes in running dirty tricks against LaRouche a precondition for mankind's survival. and his associates. He is thus exposed for the highest crime in office, prostitution for political ends. Q: Your own situation is closely linked to the situation of Lyndon LaRouche, who was put in jail in 1989 by the same Q: At the end of May, you and Andrea started a tour of gangster network that is operating against you. The most Europe to expose this horrendous abuse of your constitutional important branch of this gangster network seems to be the and human rights. What were the highlights of your European ADL, an organization which now increasingly is exposed for tour? its dirty affairs. The media in Sweden have not mentioned a Smith: Andrea and I recently were in Europe for a five-week word about the charges against the A�L for espionage. What political tour. We held meetings with parliamentarians in are these charges? Stockholm, and met with Swedish journalists, church lead­ Smith: The ADL is now the targe� of a national criminal ers, supporters, and human rights lawyers. In addition, we investigation, starting in San Francisco and Los Angeles, visited Denmark, Austria, Italy, Germany, France, and fi­ which has spread to Chicago, Loudoun County, Virginia, nally Scotland. and other locales. The highlight of our trip, besides visiting our priest in A shocking pattern of spying on tens of thousands of Rome (who married us under Vatican protection in 1986), citizens and over 900 organizations has emerged from evi­ was our visit to Scotland. My speaking engagement in Glas­ dence seized in law enforcement raids on the ADL's offices gow at a mosque before about 60 Muslim workers , made a in California. profound impression on me. I thought this was going to be a The reason why this hasn't been covered in Sweden is polite discussion of my case and of Lyndon LaRouche's case, obvious: The major establishment news media are not only but the people were totally impassioned about the ongoing corrupt, but are directly complicit in crimes involving the genocide in Bosnia. They told me, "We don't want to hear ADL, and as long as people have their illusions of "safely" about your problems. We want to know what you are going supporting their favorite little impotent grass-roots , right­ to do about Bosnia!" I knew that their outrage was totally wing conspirophile organizations, they are going to continue justified, and I felt inadequate to respond to it. When I ex­ to be slaves of the ruling oligarchy in Sweden, which manipu­ plained to them the historic importance of Lyndon lates the media and the politicians. LaRouche, they demanded to know what they could do im­ mediately to free him. The lesson for Americans from this, Q: If you now let your thoughts travel back to Sweden, what is that we have as great a Christian duty to love our neighbors do you think people here can do to assist the re-introduction in Bosnia or Africa as for those in our hometown or family. of sanity into politics? We will be held responsible. Smith: My advice to Swedes is: "Dare to be as courageous as Gustavus III [pro-American Swedish king who reigned Q: You recently finisheda similar tour in the Midwest of the 1771-92.]!" Join with LaRouche, aad give your life, your United States. How did the American public react to the book fortune, and your sacred honor to the cause of humanity. about your case, Travesty?

67 EIR July 30, 1993 National William Congressional Closeup by Jones and Car� Osgood

Grassley asks crop relief Somali warlords," he said. "I have not during the designated "special or­ for Midwest farmers cast my vote to do that." ders," criticized the Republican-insti­ Sen. Charles Grassley (R-Iowa) has The U.N. operation, which has tuted "pledge of allegiance" at the be­ introduced S. 1214, which would pro­ turned into a witchhunt for General ginning; of each day's legislative vide some relief for farmers who have Aideed, has triggered violent anti­ session. Gonzalez, who commented been unable to plant because of the American feelings in Somalia and that theireal pledge congressmen took floodingin the Midwest. caused the first major conflict with a was to . the U.S. Constitution, said Grassley said that the bill "would U.N. ally, Italy, which has refused to they were acting "like a good little allow farmers who had earlier pur­ dismiss an Italian general whom the herd, r�miniscent of the Hitlerian pe­ chased crop insurance but did not elect U.N. claimed had defied the U.N. riod: 'Sieg heil, Sieg heil,' " in re­ the prevented planting rider to retroac­ command. peating: the pledge, but ignoring the tively purchase a prevented planting "I do not see anywhere in our U. S. substance of their oaths. option. For producers who did not Constitution that this Senate is bound purchase crop insurance this year, to go along with a U.N. operation that they can retroactively purchase a poli­ appears to be getting us deeper and cy as well. Finally, for producers who deeper into a war in which we have no planted com, but had to switch to soy­ business," Byrd said. McCain seeks end to beans, those farmers would get to Sen. Larry Pressler (R-S.D.) also aid toNicaragua keep their com level of indemnity warned, "We should disengage as Sen. John McCain (R-Ariz.) called on after soybean income has been sub­ quickly as possible. It is going to get July 16for the cessation of aid to Nica­ tracted. " worse," he said. "If troops stay there, ragua. The call was prompted by a "The benefits of this plan are they should be U.N. multi-country Washington Post expose of Nicara­ many," said Grassley. "It will proba­ forces, and our troops should not take guan-sponsored terrorism. McCain bly provide producers with higher the lead. We are going to be accused said that "those of us who supported benefitsthan they would receive under of killing people, and we are going to freedOIhand democracy and aid to the disaster relief. And that relief would have claims against the United Contra$ are again vindicated by the be provided more quickly. This legis­ States." clear r¢cord of what the Sandinistas lation will also cover future disasters Rep. John Murtha (D-Pa.), chair­ were d�ing with the help of Cuba and during this crop year. " man of the Appropriations Military others. Recent events are an indica­ Subcommittee, is quietly organizing tion that the subversion continues." support among committee chairmen He charged that President Violeta who oversee military and foreign poli­ Chamqrro's government, "led by cy to require congressional approval Minist�r Antonio Lacayo," has "ced­ Withdraw combat forces of humanitarian missions involving ed all Of its real authority to the San­ from Somalia, says Byrd the military. dinista$." He cited the retention of On July 14, Sen. Robert Byrd (D­ Humberto Ortega, brother of former W. V . ) , in remarks on the Senate President Daniel Ortega, as defense floor, called for the removal of all chief, hs forewarning that this would U. S. forces from Somalia, whether or happen. not they're a part of the U.N. opera­ Republican attack McCain claimed that the Sandinis­ tion. Byrd complained that "missions on Gonzalez fizzles tas coqtinue to export terror and sub­ of food relief have now taken a back House Speaker Tom Foley (D-Wash.) version, "posing an incredible danger seat to participation in conflict with has decided that there is no need for to the lives of innocent people as evi­ local warlords," a task which "was any disciplinary action against Rep. denceq by the uncovered stockpile of never the Senate's intent" when they Henry B. Gonzalez (D-Tex.), the surfac�-to-air missiles." He urged the approved the presence of U. S. forces Capitol Hill newspaper Roll Call re­ Clintob administration to freeze all in Somalia. Byrd noted that the U.S. ported. Republican leaders Bob Mi­ further assistance until "an interna­ contingent was recently reinforced but chel (Ill.) and Newt Gingrich (Ga.), tional body has investigated the that the Senate was not asked to okay had tried to get Foley to reprimand crimes that have been revealed." He that reinforcement. "The Senate has him. added that such a body should include not bought into a police action against Gonzalez, in one of his speeches the FBL

68 July 30, 1993 National EIR He failed to mention that the deal the nomination. agencies, and $600 million from mili­ between Chamorro and Lacayo was Elders has received support from tary intelligence agencies, from Clin­ arranged by the Bush administration many Democrats and from the Con­ ton's proposed budget. through U.S. favorite, Venezuelan gressional Black Caucus, but her poli­ Later in the ypar, the Senate might President Carlos Andres Perez. cies have sparked opposition. Elders be asked to vote on a proposal to make was to have testifiedbefore the Senate the total budget figure public, a move Labor and Human Resources Com­ which is beingjustified by the supposed mittee on July 13, but the hearing was "end of the Cold War." The Senate postponed one week as accusations districting ruling Armed Services Committee, which has R were leveled of financialirr egularities a rarely exercised prerogative over in­ irks black legislators in her management role in the Nation­ telligence, is con$idering making even In four additional states, the contro­ al Bank of Arkansas. further cuts in the budget. versial U.S. Supreme Court decision Elders , who is black, has been the calling into question the legality of re­ director of the Arkansas State Health cent redrawing of congressional dis­ Department since 1987. She is being tricts is causing political turmoil. The attacked for her strong pro-abortion decision has opened the road for legal policies, her support for early sex edu­ ostenkowSki resurfaces challenges to the new districts which R cation in schools, and her desire to in House Bank probe were set up to provide more propor­ make condoms available in high As President Cli�ton begins to focus tional representation for minorities. school clinics, albeit with the permis­ in on the budget reconciliation bill, Aftera Supreme Court decision on sion of parents. She has also support­ one of the two key negotiators for a case in North Carolina, a lawsuit ed the controversial Norplant birth­ Democrats, Hou$e Ways and Means fromlast year was re-opened on June control program. Committee Chairman Dan Rosten­ 29, challenging the district of black Sen. Don Nickles (R-Okla.), in kowski (D-Ill.), is again besieged by congressman Cleo Fields (D-La.). statements on the Senate floor on July scandal-feeding hopes that the in­ And in South Carolina at the begin­ 16, said, "While she may be a very competent, austerity-based deal could ning of July, a three-judge federal fine physician and a very able advo­ still be blocked. , panel erased court-ordered congres­ cate for a political agenda, Dr. Elders On July 19, former Postmaster of sional and legislative districts and has an agenda that can be fairly de­ the House of Representatives Robert gave the state legislature until April to scribed as extreme." Nickles pointed Rota reached al plea-bargain with produce its own map. to statements Elders had made before prosecutors, pleading gUilty to three Despite the Supreme Court ruling, the Senate Labor and Human Re­ misdemeanor counts of conspiracy the Alabama Democratic Conference sources Committee in 1990, where and embezzlemept and acknowledg­ is pressing for a second black majority she commented positively on the fact ing that he had hcrlped an undisclosed district, and the Puerto Rican Legal that the increase in abortions had led number of repreSentatives steal tens Defense and Education Fund has to a decreasein Down's syndrome in­ of thousands of dollars for almost 20 sought a third Hispanic district in New fants in Washington State. years. Although 'Rota did not name York City, where one of every four any names, he did reveal payments to residents is Spanish-speaking. an unnamed congressman whom pub­ licly available records show to be Ros­ tenkowski. Under House rules, Ros­ Senate panel cuts tenkowski would ,have to step down if Elders nomination intelligence budget he were indicted. comes under fire The Senate Intelligence Committee On July 20,: Clinton and Vice President Clinton's nomination of Dr. voted on July 16 to freeze intelligence President Al Gore met with House Joycelyn Elders to Surgeon General spending at last year's level, rejecting Democrats on the budget reconcilia­ of the United States has come under heavy administration lobbying for a tion. The President has indicated that attack on Capitol Hill, leading to a 5% increase to the nation's intelli­ he now favors the 4.3¢ per gallon gas­ postponement of her confirmation gence agencies. The vote removes oline tax increase which was con­ hearings. So far , the administration $700 million from the CIA and the tained in the Senate version of the bud­ says that it still stands strongly behind government's non-military espionage get package.

July 30, 1993 National 69 EIR , National News

•

popularized mythology, the Confederacy a system. " was "treasonous . . . a contradiction to the Anothtr obstacle to obtaining federal ideals of the American Revolution." At a funds for the project is the requirement in Lugar calls on Clinton public forum on July 12, Reverend Keen the Clintop. $140 million proposed budget recalled the scene in Danville in April 1%5, package that funds to arm Bosnians will only go to high­ the lOOth anniversary of "president" Dav­ speed rail projects that are receiving funding Sen. Richard Lugar (R-Ind.), a senior mem­ is's stay there . Whites held a huge parade, from state governments. Since the followers ber of the Senate Foreign Relations Com­ in full Confederate regalia, while blacks, of Sen. Phil Gramm (R-Tex.) in the Texas mittee , urged President Clinton on July 15 paid to dress as slaves in chains, brought up legislature succeeded in stipulating that no to ignore U. N. resolutions if necessary and the rear of the parade . He also noted that state fund$ would go to the project, the Tex­ to provide military backing for the citizens even today, virtually no black people work as High-Speed Rail Authority will be forced of Bosnia-Hercegovina, the Washington indoors in officejo bs in Danville, and con­ to lobby

70 National July 30, 1993 EIR Brilifly

A HEROIN SURGE • is under • way nationally., fed by marketing of a much more potent form of the drug- 50-60% purity as opposed to the for­ dogs have died of plague in central Wyo­ protect Bush higher-ups . On his last day in mer 5%-resulting in an increase in ming. Plague epidemics have been docu­ office, Attorney General Barr endorsed a deaths from overdoses. In Connecti­ mented in eight other western states. So far report finding Sessions gUilty of ethical cut alone , 75 people have died from this year, six persons have died of plague lapses and recommending the FBI director's overdoses over the past 15 months. in the United States, the largest number of removal . plague deaths for any single year in this President Clinton clinched the coup by HOMOSEXUALS may now century . appointing Clarke as Sessions's successor. • serve in the U.S. Armed Forces, but One of the greatest concerns of health On July 19, Rep. Henry Gonzalez (D­ are still not allowed to flauntit , Presi­ officialsin the West is that the plague infec­ Tex.) commented that "Bill Sessions was dent Clinton announced to a silent tion is reaching a density where it may be­ cut down by intriguers in the FBI. . . . This military audience on July 19. Clinton come airborne (aerosol transmission). At is a shameful example of the rawest kind of "suggested that if the military leader­ that point, there will be an explosive spread internal agency political chicanery." ship knew homosexuals personally, of the disease among both animals and their opposition to removing the ban humans. would ease," a¢cording to the July 20 Washington pdst. THE NEW ORLEANS Bisexuality is now 'in' • City Council voted ,6- 1 on July 15 to re­ Sessions fired as for American teenagers move the so-called Liberty Monu­ The Washington Post on July 15 carried a ment, which commemorates a racist FBI head in coup front-page story on how American teenag­ mob uprising in 1874 against the ci­ On July 19, President Clinton announced ers-increasingly influenced by "sexually ty's white and black Reconstruction that he was dismissing FBI Director William ambiguous" stars like Madonna and Mi­ government. Sessions, effective immediately, on the chael Jackson, and by "the climate of open­ GEORGE �USH grounds that Attorney General Janet Reno ness" to homosexuality in the schools-are • and Henry Kis­ had "reported to me . . . that he can no long­ "questioning their sexuality." The article in­ singer Associates, Henry Kissinger's er effectively lead the bureau and law en­ terviews a number of junior high and high private consulting firm, havebeen sub­ forcement community." school students. Some of those interviewed poenaedto testifyin the trialof Christo­ Following the announcement, Sessions reported that bisexual experimentation is pher Drogoul, who says that the Bush gave a final press conference in which he now the trend, since it protects one from government en¢ouraged him to laun­ lashed out at what was in effect a "Cointel­ harassment for being a homosexual or for der loans fromthe Italian Banca Natio­ pro" operation mounted by neo-Hooverites being a heterosexual ! Said a 16-year-old nale del Lavoro'to Iraq . to force his removal: "It is because I believe from the well-to-do Virginia suburb of Falls THE STATUE in the principle of an independent FBI that I Church, "For people who are heterosexual , • of KKK founder have refused to voluntarily resign," he said. (saying they're Obi') is to protect themselves Albert Pike in Washington should be Sessions has charged that there was a from being just normal . It's a form of rebel­ removed, according to a resolution virtual coup d'etat against him by what oth­ lion." And a 13-year-old from Bethesda, adopted at the national conference of ers have termed "neo-Hooverites," whose Maryland said, "A lot of my friends are like, The Most Worshipful National ringleader is Deputy FBI Director Floyd I. 'Bisexuality rules.' " Grand Lodge df Free and Accepted Clarke, especially because of Sessions's The article reports that the problem of Ancient York Masons, Prince Hall policy to overturn the byzantine hierarchy sexual identity crises is becoming so com­ Origin, Nationlll Compact. of the Bureau, which discriminates against mon, that guidance counselors held a sys­ PERJURY women and minorities. Last year, as a result tem-wide meeting in Fairfax County, Vir­ • may have been com­ of the rejection of this approach by racist ginia, one of the nation's largest school mitted during testimony of U.S. of­ neo-Hooverites, secret denunciations by systems, last spring. School officials "urged ficials during Senate hearings on those familiar with the details of Sessions's counselors not to make judgments, to en­ Americans list�d as missing in the office had prompted the Office of Profes­ courage teenagers to explore their feelings, Vietnam War, according to Sen. sional Responsibility to open an investiga­ and share them with their families." Several Robert Smith (R-N.H.). Smith, who tion. This gave Bush Attorney General Wil­ teachers are quoted saying that the phenom­ recently traveled to Vietnam with liam P. Barr a handle, when Sessions enon of homosexual youths takingeach oth­ former Marine POW Robert Gar­ criticized the Justice Department for cov­ er to school dances and proms is now com­ wood, has asked the attorney general ering up the true nature of the Banca Nazio­ mon, as is the sight of these children kissing to begin a special investigation. nale del Lavoro (BNL) scandal in Atlanta to and necking in school hallways.

July 30, 1993 National 71 EIR Editorial

Yo ur children are being abused

These days a lot is written and talked about on the the value of chastity directly challenged in the school, subject of sexual abuse, but in point of fact, both chil­ but even that of love. Sexual intimacy is reduced to the dren and adults are being subjected to something just same level as a physical sport, while homosexuality is as insidious: spiritual molestation. There is a move being taught as an "alternative lifestyle." afoot, under the guise of educational reform , which is Coupled with this is the deliberate destruction of a attempting to use U.S. schools to tear children away coherent curriculum, beginning at the kindergarten to from their families. first-grade level. Here what i� occurring is the substitu­ This is particularly insidious today , when economic tion of endless group discussion of one's "attitudes," and social conditions (not least the high rate of divorce) in place of the traditional insistence that every child are already putting extreme stress upon the American has a right and responsibility to assimilate the cultural family. According to some estimates, as many as 50% treasures of our civilization, beginning with fundamen­ of American children are raised by only one parent for tal skills such as reading, writing, and arithmetic, but a significant portion of their lives, and over half of the quickly passing on to such enduring documents as the mothers of pre-school children work at full-time jobs. Declaration of Independence, Lincoln's Gettysburg Associated to these "objective" conditions is a spiri­ Address, the Bible, Shakespeare's plays and poetry , tual malaise which undermines the stability of the fami­ and so on. ly as the basic unit of society , and child-bearing and At the time of the American Revolution, children child-raising as a fundamental task for the family. Of raised in the 13 colonies werb the best educated in the course, not all married couples become parents , that is world; today , American y04ng people are sinking to not the issue; the point is that the role of the family the lower half of any academic ranking. Subjects such in the creation of the next generation is its ennobling as history, science, mathematics, and languages are feature . All families have the privilege, in one way or no longer being competently taught, and children are

another, of participating in this glorious task, as they being encouraged to reject theI philosophical , artistic , are part of the fabric of the whole society. and scientific heritage of western civilization. What is going on in our schools today is little short This attack is perhaps most advanced in the United of rape of the family, as guidance personnel and even States, but similar degeneration is occurring every­ teachers arrogate to themselves the privilege of ques­ where . It is the logical outcome of the spread of the tioning the moral responsibility of parents for their chil­ counterculture in the 1960s, 3nd of the growing hegem­ dren . Thus children who come from homes in which ony of New Age philosoph�es. Allowed to continue, discipline is imposed are challenged by school person­ such a trend line will not only bring with it the destruc­ nel for being "authoritarian ." Even worse, in some tion of the family and the degradation of culture, but an instances, children are put into group or individual end to our civilization itself .. "therapy" sessions, without the knowledge of their par­ Similar tactics of using the schoolroom as the place ents. In those sessions, they are encouraged to reject to brainwash children have b¢en used in Nazi Germany, the authority of their parents. the Soviet Union, and Communist China. The schools Children are subjected to "sex education" classes cannot be allowed to tum children into the pawns of a which offend moral values of most families. Before tyrannical state . Everyone guilty of this abuse must be puberty even, they are given access to contraceptives , called to account and immediately removed from any and are questioned about whether and to what extent position from which they can continue this vicious they may be "sexually active." In this way, not only is abuse .

July 30, 1993 72 National EIR } l S E ' E LAROUCHE ON CAB L E TV

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