Can LaRouche Put Don Regan

. Behind Bars?

READ DOPE, INC. AND JUDGE THE EVIDENCE FOR YOURSELF! '

The classic combat manual of the War on Drugs

SECOND EDITION DOPE, INC. Boston Bankers and Soviet Commissars Now available from Caucus Distributors, Inc. P.o. Box 20550 Columbus Circle Station New York, N.Y. 10023 $14.95 plus $1.50 postage and handling for first copy, $.50 each additional copy. Visa or Mastercharge accepted. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, From the Editor Christopher White, Warren Hamerman, William Wertz, Gerald Rcse, Mel Klenetsky, Antony Papert, AI/en Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Director of Press Services: Christina Huth T 0 single out the most exciting development internationally first: INTELLIGENCE DIREcrORS: For the first time in postwar history, a new major party has come into Africa: Douglas DeGroot, Mary Lalevee Agriculture: Marcia Merry being in the Federal Republic of Germany that is not the product of Asia: Linda de Hoyos the postwar Occupation, but represents the fight by German patriots Counterintelligence: Jeffrey Steinberg, Paul Goldstein to reaffirm and defend the great heritage of science, classical art, Economics: David Goldman philosophy, and republican political thought which Germany has European Economics: William Engdahl, ,, Laurent Murawiec bequeathed, indelibly, to all of mankind. On page 28-30 we present Europe: Vivian Freyre Zoakos our first coverage of the Patriots for Germany political party, which Thera-America: Robyn Quijano, Dennis Small Law: Edward Spannaus has assembled a full slate of 100 candidates, one in every electoral Medicine: John Grauerholz, M.D. Middle East: Thierry Lalevee district, for the upcoming June state elections in Lower Saxony, one Soviet Union and Eastern Europe: of the 11 states (Lander) of the Federal Republic. Rachel Douglas, Konstantin George United States: Kathleen Klenetsky, Stephen Pepper The world-scale necessity for such a bold initiative is developed

INTERNATIONAL BUREAUS: in our other major articles: Bangkok: Pa1cdee and Sophie Tanapura The Economics lead presents the story of the ongoing, deliberate Bogota: Javier Almario Bonn: George Gregory, Rainer Apel destruction of the U.S. economy by Paul Volcker and his backers; Chicago: Paul Greenberg and the report on Lyndon LaRouche's analysis of the Tokyo summit Copenhagen: Poul Rasmussen Houston: Harley Schlanger which follows it on page 6, presents the ideological flawsin President Lima: Sara Madue;;q Reagan which are allowing this treason to be carried out. In the Los Angeles: Theodore Andromidas Mexico City: Josefina Menendez International lead story, we feature Henry Kissinger's most blatant Milan: Marco Fanini bid to date to decouple WesternEurope strategically from New Delhi: Susan Maitra the United Paris: Christine Bie"e States (page 24). In the related, National leild article, the U.S. Rio de Janeiro: Silvia Palacios military "reform" dictated Rome: Leonardo Servadio, Stefania Sacchi by the insane budget-cutting demands of Stockholm: William Jones Gramm-Rudman is analyzed In depth. United Nations: Douglas DeGroot Washington, D.C.: Nicholas F. Benton, The Feature is based on a sampling of the findings of EIR's Susan Kokinda, Stanley Ezrol newest Special Report, The Libertarian Conspiracy to Destroy Wiesbaden: Philip Golub, Mark Burdman, Goran Haglund America's Schools. As Helga Zepp-LaRouche� a co-founder of Pa­ triots for Germany, writes in her introduction to the report: "If the E1RIExecutivt! Intelligence Review (ISSN 0273-(314) is published weekly (50 issues) except/or the second week West does not want to give up voluntarily, then it is urgent that we ofJuly andjirst week ofJanuary by New Solidarity International Press Service 1612 K St. N.W., Suite 300, change our current educational policy, and cotmect our traditional Washington, D.C. 20006 (202) 955-5930 Distributed by Caucus Distributors, Inc. knowledge with the challenges of the future. BIIIYJfIHIJ HetIdq_rs:Executive Intelligence Review "Otherwise, Moscow will only need to wait until our next gen­ NacbrichtenagenlUr GmbH, Postfach 2308, Dotzheimerslrasse 166,0-6200 Wiesbaden, Federal Republic eration becomes utterly destroyed by drug consumption and by an of Germany Tel: (Q6121) 8840. Executive Directors: Anno HeUenbroich, education which promotes wretchedness. then, very soon, Michael Liebig And In IhnmMl: EIR, Haderslevgade 26, 1671 Copenhagen (01) everyone will have fogotten what the values of the Western world 31-09-08 In Mako: EIR, Francisco Dfas Covarrubias S4 A-3 actually were, along with the fundamental difference between East Colonia San Rafael, Mexico OF. Tel: 70S-129S. and West, and the reason why there do indeed exist values which /tIpIIII .ublCriptiDn .Ilks: O.T.O. Resean:h Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjulru-Ku,Tok yo must be defended at all costs." 160. Tel: (03) 208-7821. Copyright C> 1986 New Solidarity International Press Service. A1frights reserved. Reproduction in whole or in part wiIhout permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$12S,6 months-$22S, 1 year-$396,Single issue---$l0 Academic library rate: $24S per year PoIIbnaster: Send all address changes to E1R, P.O. Box 17390, Washington, D.C. 20041-0390. (202)955-5930 �TIillContents ------�--...-----� ..... ,; " Interviews EconoI,tlics

29 KarlheinG;rb� 4 What Wolcker really A former member of the board of meant lby 'controlled the Retail Traders ' Association of disint,ration' Osnabruck-Emsland and a member He's convinced the President to do of the Chamber of Industry and nothing about oil prices, rubber­ Commerce of Osnabruck, Mr. stamp n+1F plans and disastrous Derbfuss is a co-founder of tax legi�ation, and now he's Patriots for Germany and is deman<1fg emergency powers to running as a candidate on the new arrange lnterstate banking party 's slate in Lower Saxony. takeoveis.

30 Robe 6 LaRotpche characterizes Mr. Graper, stian sumlllft as 'unmitigated Democratic Union member disaster' for economy throughout his political life, was Yet, to $imply damn the President for 18 years the cnu mayor of his for his �ad policies would be hometown of Garstedt. He is now irrespoqsible-Congress and the a candidate for office on the Democ11ltic Party must be Patriots for Germany slate in reshape� as an effective "loyal Lower Saxony. opposition" on these issues.

8 Currency Rates

Departments 9 The Austral and Cruzado Plans� wrecking the 42 Southeast Asia economy to be popular On the brink in Thailand. 11 Mexi�o: Drumbeat for an 43 Report from Madrid 'Azteta Plan' Libyan terror opens election ! season. 12 AgricUlture Droug�t could be the last straw. 44 From New Delhi A blow struck for democracy. 13 Labot in Focus 14 Busiqess Briefs 4S Report from Bonn The meltdown of Kohl's popUlarity. Science & Thchnology

46 Northern Flank 16 ltaly'ls role in the coming The Palme murder and the KGB. scientific-technical revolution 47 Vatican GiuseAx:Filipponi, physicist and A not so "holy" foreign policy. director of Italy's Fusion Energy Foun!lition, traces the Italian hY

Feature International National

24 Kissinger in new offensive 62 Gramm ..Rudman bill to destroy Western haunts military reform Alliance debate His syndicated column, appearing A rehash of old, ill-advised in newspapers around the world proposals bow has the budget­ during the May 9-12 period, called cutter's axe for support. for "a major reassessment of the Atlantic Alliance." 65 Would the Democrats

NSIPS/Stuart Lewis rather die than win? The product of National Education Association 26 Mexico target of "group dynamics"-a "gay rights" parade in New outrageous hearings 66 California: Some York. incumbents fear 28 Patriots for Germany 'LaRouche lightning' 50 Who subverted America's launch election .drive in schools? Lower Saxony 67 Eye on Washington Based on some highlights from The new party has filed over 100 Shultz blows kisses back to EIR's new Special Report, The candidates, dedicated to preserving Kissinger. Libertarian Conspiracy to Destroy the Western alliance and forcing America's Schools. through urgent measures to restore 68 Congressional Closeup Documentation: the UNESCO the world economy. link, and the Lucis (Lucifer) Trust. 70 Nationar News 31 Colombian drug traffickers make a bid to control the government Investigation Documentation: The document presented to the Colombian news media by the fugitive "godfathers" 58 How the press runs of the drug trade . extortion for the ADL It is part of a political-enemies 34 Summit may have ruined operation against LaRouche and Nakasone his supporters that could result in some people, including in 35 Laborites' 'Fortress government, going to jail . Australia' plan means clear sailing for the Soviets 60 Civil Rights Commission: An idea whose time has 38 Garcia introduces passed? economic development to Contadora process 61 Why are KGB, ADL spying on LaRouche? 40 LaRouche slanderer arrested in Holland

41 Gorbachov prepares South Africa crisis

48 International Intelligence �TIillEconomics

What Volcker really meant by 'controlled disintegration'

by David Goldman

Back in 1978, soon-to-be Federal Reserve chainnan Paul simply crush political opposition to whatever "solutions" the Volcker endorsed the concept of "controlled disintegration" megabanks decide to employ. as "a legitimate objective for the 1980s," in a speech before Volcker's usual channel for leaks, Salomon Brothers' Warwick University in England.In the light of recent events, Henry Kaufman, indicated what sort of financial environ­ an ordinary fellow might suspect that he was doing it on ment these people expect, in a May 6 talk beforethe National purpose: Press Club: First, the Donald Regan cabal in the White House per­ ". .. Strong bond perfonnance has been weaned on suaded President Reagan that he need take no action against lackluster economic growth .... This market behavior also the impact of collapsing oil prices on the U.S. economy, suggests an unquantifiable speculative participation in the despite the mortal danger to the entire Southwestern banking rally, which has undoubtedly helped to boost prices and to system. . lower interest rates beyond levels that might have prevailed Secondly, Regan and Co.persuaded the President to rub­ without such speculation.Wic;le daily price swings reflect the ber-stamp the April 11 dictates of the InternationalMonetary volume of this speCUlative activity. Consider the explosion Fund, at the May 2 Tokyo Summit, leaving the IMF as in trading activity in some key sectors.The average daily recognized referee in an international system based on mul­ volume of trading in the Treasury bond futurewas $23 billion tilateral cheating. in the first four months of 1986.In the comparable periods in Third, Regan convinced the President to endorse tax leg­ 1985 and 1984, this daily volume averaged only $15 billion islation which penalizes precisely those sectors of the econ­ and $10 billion, respectively.... The capacity-to leverage omy which threaten to bring down most of the international in the financial markets is far greater today than at any time banking system. in the past 50 years.The pleasant side of speculation is that Finally, Federal Reserve chainnan Paul Volcker May 13 it can reinforce a bullish trend.The dark side is that the demanded emergency powers to arrange shotgun takeovers unwinding of speculation contributes to quick, and dramatic, of failing regional banks. The undertaker, it appears, has market reversals." takenextraordinary measuresto increase the supply of corps­ With this in mind, the Senate Banking Committee, in a es. The major money-center banks are taking advantage of special session May 13, heard the pleadings of Paul Volcker the relatively faster disintegration of domestic real estate, and other federal regulators, seeking emergency powers to energy, and farm debt, compared to the disintegration of their save failing financialinstitutions by means of bank takeovers. own holdings of Third World paper, to stage a takeover of The hearings occurred as two more agriculture-based banks the regional banking system. If they succeed, the United • collapsed in Idaho, bringing the number of farm-bank fail­ States will look like Britain or Canada, where a handful of ures this year to 42.The emergency powers which Volcker megabanks have monopoly power over the financial system. sought in the Senate are centered on a scheme to allow take­ This will not avert a crisis: The far-worse position of the overs of failing banks by out-of-state financial institutions­ megabanks will come to the surface in short order. It will primarily Citibank and Chase Manhattan. Volcker stated,

4 Economics ElK May 23, 1986 I "Banks heavily dependent on agriculture and energy have After that, capital gains would be Itaxed at the ordinary in- been hit particularly hard and bank failures could damage the come rates, which would be 15% a,d 27%.Regan, Volcker,

... entire economies of states and regions. " He then added, "The et al. have called a general profit-taking. failure of a few importantinstitutions could raise . . .concern about others, basically sound banks, and lead to a contagious What's next for the banking system? and spreading loss of confidence." Despite the recent advance in oil prices, from the $11- 12 At the same hearing, Comptroller of the CurrencyRobert level to the $14- 15 level, there is little hope of a price in­ Clarke stated for the record: "There are currently300 national crease, for the simple reason that we are continuing our slide banks on the problem list, up almost 300% from 1983." into depression. Gasoline demand actually fell in the United States between March and April, despite lower prices. In The tax falls London May 15, the directors of Shell Oil warned stockhold­ At least 6 of the 1 0 largest Texas banks are represented ers at the company's annual meeting that oil prices would in theComptroller's list of 300.We reported previously that continue downward from the $15 level, further reducing oil the Texas big 10 are less endangered by their energy loans, company revenues. which amount to roughly 150% of shareholders' capital, than The stricken oil-producing regions of the country are by their real-estate loans, which amount to about 500% of producing little else than a wave of business failures. Tulsa's shareholders' capital. The washout of the Southwestern real­ Bank of Commerce failed May 8 after panicky depositors estate boom had already brought the proportion of delinquent withdrew $5 million the previous day. Bank of Commerce's loans to the level of those banks' capital, i.e., threatening failure marked the second depositOrs' run against an Okla­ their solvency. That was before the oil price collapsed. homa bank, and this year's fourth failure. On May I, the In January, EIR warned that tax reform proposals for­ First National Bank of Carterbecame .the year's third banking mulated by the House of Representatives could knock down failure. the value of most commercial real estate by a solid 40%, Oklahoma banks have lost an eStimated $200 million in since the pricing of such properties depends heavily on tax capital during the past two years, even before the crashing advantages. The Packwood legislation in the Senate, sup­ oil price put their energy loan-paper through the shredder. ported by the White House, is actually worse than the worst­ The state's three largest banks are all posting losses for the case scenario we examined at the time. It is a prescription for first quarter of this year-even before the full impact of the a real-estate market crash. Not that such a crash is not long oil price crash hit. Bank of Mid-America, the state's largest, overdue, and perhaps even beneficial under the right circum­ showed a $5.9 million loss; BancOklahoma showed a $44 stances. But under present conditions, Packwood is in the million loss; and First Oklahoma Bancorp projects a loss of position of the firemen in the old British wheezer, Pure Hell up to $67 million. at St. Trinians, who mistakenly attach their hoses to a gaso­ These are banks that have already had to scramble for line truck. cash, borrowing funds from out-of-state banks under tough Both commercial and residential properties can now be conditions. First OklaIioma's capital:has already fallen below written off in 19 years; the new legislation stretches this out the minimum agreed to with its creditors, who may now force to 27.5 years for residential properties and 31.5 years for the bank into a distress sellout. commercial property. Depreciation would also be subject to the alternative minimumtax. Even investors who take a more New York buyout active role would be limited in the amount of losses that could In desperation, the Oklahoma State Legislature is in the beclaimed. Landlords could use up to only $25,000 in losses process of passing a bill permitting dut-of-state banks to take to offset other income. That wipes out the unlimited deduc­ over failing Oklahoma institutions.' The bill, supported by tion for interest expenses, which was the secret of successful the state bankers' association, passed on May 7. In effect, real-estate speculation under the 1981 tax bill. the Wall Street mafia headed by White House chief of staff The designers of the tax legislation are not merely aiming Donald Regan, the former head of Merrill Lynch, will start at the real-estate bubble, but at the speculative bubble in all buying out regional institutions at garage-sale prices. Texas markets.Paul Volcker's recent jeremiads conceming the $8.5 is the next target, where crashing oil prices and a dissolving trillion in domestic debt he is responsible for creating were a real-estate market endanger the state's $200 billion in bank­ crude hint to this effect.As a whole, the tax package proposes ing assets. a $22 billion tax increase, a classic deflationary measure, for Texas suffered another billion-dollar failure earlier this fiscal-year 1987, due to the time gap between the elimination month, when Houston's Mainland Savings was shut down of tax deductions, and the phasing-in of a lower general tax by regulators, and several more are expected during the next rate. several weeks. The fallout from the Southwest banking col­ Because of the elimination of the special 20% tax on lapse has already produced a conttaction in bank lending capital gains, many stockholders will sell investments before nationally, as of the first quarter of 1986. That is the firsttime July 1, 1987, to take advantage of the lower current rate. bank lending has contracted since the Great Depression.

EIR May 23, 1986 Economics 5 Tokyo Economic Summit

LaRouche characterizes summit as 'unmitigated disaster' for eCQnomy

In a release datelined May 7, declared Democratic presiden­ Arafat. Admittedly,a state of war continues toexist between tial contender Lyndon H. LaRouche, Jr. congratulated Pres­ Israel and Arafat's forces, too', but "if a constructive policy ident Reagan on achieving a "new spirit of cooperation " with of detente, leading toward peace, between Israel and the allies in the war on terrorism, but otherwise characterized the Palestinians, could be established, the threat of terrorist-like Tokyo Summit (May 3-6) as "an absolute disaster. " actions against Israel would be limited to Syrian-controlled "The economic and monetary proposals adopted by the groups. " Summit must be described without fear of exaggeration, as 'an unmitigated disaster,'" wrote LaRouche. "All around, Responsible criticism President Reagan earned a straight 'F' for his performance LaRouche characterized President Reagan as "a pretty on monetary and economic issues. . . . Compared to the good President on every issue excepting economic policy," 'success' of the Tokyo monetary summit, the Soviet's Cher­ of which, he said, "Mr. Reagan is ignorant of even the sim­ nobyl disaster was a glorious economic achievement for plest principles.... Since tije time he was closely associ­ Moscow. " ated with the General ElectriclCompany, he has been drilled LaRouche also said: "President Reagan failed to honor in what he calls 'the magic of the marketplace.' Like many the United States' implied commitment to Israel's Prime Republicans today, his ideological shibboleths have impaired Minister Shimon Peres, to present Peres's proposal for a new his ability to think economi¢ issues through in a rational Middle East p«(ace-initiative at the Summit. If the United way. " States is serious about isolating international terrorist forces LaRouche said that it was;necessary to analyze the Pres­ in the Arab world, the President must give strong support to ident's problems in economics, even though many might say: Peres's proposal. ...There is no likelihood of Arab-Israeli "Look, his policies stink. Who cares why he has adopted peace without international sponsorship of an economic de­ them. The problem is, just toiget rid of them. " Replied Lar­ velopment policy for both Israel and Arab nations, especially ouche: "The error in that simplistic argument, is the basic Egypt, Jordan, and Lebanon. " fact, that Ronald Reagan will be President until January 1989. LaRouche is considered a leading expert on terrorism by Betwe� now and January 1989, the U.S. will be confronted many security agencies, and on performance, he is the world's with themost dangerous economic crises in our history; un­ leading economist. His May 7 release was devoted to both less Ronald Reagan makes the right decisions, our republic topics, and he linked them. is in grave danger. It would be, irresponsible behavior, simply "International terrorism, " he wrote, "was launched by to damn the President for his �ad mistakes in economic pol­ former KGB chiefYuri Andropov during 1967-69. This oc­ icy. The only responsible behavior, is to analyze the Presi­ curred as part of the Soviet KGB's decision to take over dent's decision-making processes, to the practical purpose of growing portions of the international narcotics traffic. The discovering how he might be persuaded to change his way of channel used by the KGB for organizing international terror­ thinking on this subject. ism, was Syrian intelligence. " "The duty of the responsible citizen, is not only to work: Calling the Palestinian part in international terrorism "a tochange the President's views on this matter; we must work complex one, " he made a sharp distinction between "desper­ to give the President the kinds of political-power options he ate Palestinian forces " who have been coopted to sections of will need, to push through the needed kinds of changed pol­ Syrian intelligence involved in terrorism, citing Abu Nidal's icies. This means reshaping the Congress, and reshaping the forces and those of "the Abu Abbas recently featured on Democratic Party as an effective 'loyal opposition' on these NBC-TV News, " and those PLO elements loyal to Vasser issues. "

6 Economics EIR May 23, 1986 President Reagan, "like most Americans living today, indispensable and verylarge parto t the cost of production of knows nothing more than a few isolated and distorted facts everygood manufactured by priva¢ entrepreneurships." about the history of the United States," said LaRouche. "For The United States, said LaRouche, has suffered disas­ thatreason, he is able to believe such silly things, as asserting trously every time a policy of "fr� market" economics has that the U.S. economy was founded upon the principles of been adopted by an administration-and there have been Adam Smith's Wealth of Nations. In fact, the American many. Revolution was fought to free the United States from the "The center of the folly of t� President's circle," he policies which Adam Smith proposed. For example, the wrote, "is this. In the history of modem economy, the simul­ founders of Abraham Lincoln's Republican Party would be tanaeous lowering of the direct cost of production of goods, sick to their stomachs, to hear a Republican President de­ and increase of goods' quality, is the result of technological nouncing 'protectionism.'" progress.This technological progress can occur only if the LaRouche then described the President's circle-and most amount of energy produced and cc>nsumed, per-capita and professional politicians around Washington-as persons who per-hectare, is increasing, and only if productionis becoming "were processed, like so much cheese, through the 'diplo­ increasingly capital-intensive. To obtain this result, the tax mac-mill' tracks of the Ivy League universities.... It never policies and credit policies of governments, must provide occurredto them to check original sources,to discover whether incentives for such forms of inve�ment, and also provide thetextbook or lecturer were babbling nonsense. disincentives for other formsof investment. . . . ". . . They succeeded in politics, because they were sold "In U. S.history, every time the United States has adopted to the voters like a brand of breakfast cereal or toothpaste; Adam Smith's "freemarket" policies� the economy has slipped they were 'packaged' and promoted. The purpose of modern toward a new depression or general banking collapse. This packaging, is to conceal the product inside the package, or happened under Presidents Thomlls Jefferson and James to divert attention from it; this is especially so, in the pack­ Madison. It happened under Jackson, Van Buren, Polk, aging of political campaigns. Most such political careerists Pierce, Buchanan, Grant, Cleveland, Theodore Roosevelt, have verylittle confidence in what they are, inside the pack­ Coolidge, Hoover, Johnson, Nixon, Ford, Carter, and Rea­ age; defending the outer packaging, is their sense of self­ gan.Every time the United States h�s rejectedAdam Smith's interest. doctrine, as under Washington, MOQroe, Quincy Adams, and "There are members of Congress in both parties who are Lincoln, or in major economic mobilizations for national better than that privately, but we have given a fair picture of defense, the economy has boomed. 'thesebooms were caused the majority. . . . by the Federal government'sadoption of 'dirigist' policies of "It is commonplace opinion, that the President imagines infrastructure-building, and of tax �d credit policies which himself the chairman of the board of a public corporation, directed flows of investment and credit into technologically and thinks that government ought to be run as he imagines a progressive formsof productiveveqtures. successful business ought to be run. The trouble is, that while "President Reagan, like Nixon, Ford, and Carter, has a number of the President's intimates are successful busi­ tried to get the government out of the economy, to tum the nessmen, they are not producers of wealth, but are men who economy over to the powerfulrenti�r-financier bankers who made their wealth in buying and selling what was produced actually control, and rig, the so-called 'free market. ' The by others; buy cheap and sell at a profit,is about the limit of President has ignored every scientific standard of measure­ what they know. They do not understand, for example: ment of economic growth, and has Jfleasured growth only in "1) That the quality (productivity) of labor in production terms of the paper profitsof the findcial operators. depends upon both quality of education and household stan­ "The farm crisis and the skyrocketing of the u. S.foreign dard of living.They believe in 'social Darwinism,'a 'Horatio tradedeficits, are the clearest, simpl¢st examples of the Pres­ Alger' view of 'rags to riches.' ident's blundering on economic policy. "2) They do not understand the fact that all wealth is "The President asserts, that the c�use of the farm crisis is ultimately, produced physical wealth. They see no distinc­ overproduction by farmers, despite jthe fact that the quality tion between profits from production of wealth, and profits of diet of the average American household has been dropping from those forms of speculative trading in which production at an accelerating rate, and that tbe world is ravaged by of wealth has no bearing upon profitmargins. starvation levels of hunger. The levqls of production of food "3) Many of them, including the President, admiretech­ in the U.S. have been cut back to about 1954 levels, and are nological progress, but they have not the slightest compre­ now falling toward 1933-34 levels: the u.S. consumer is hension of how to foster technological progress.They simply depending more and more on cheap imported food, mostly do not understand the standpoint of the production executive from nations in which starvation already exists, and food­ and his engineering staff. shortages in the U. S. are looming fOf the years ahead. "4) They are stubbornly ignorant of the fact, that invest­ "... The U.S. imports deficit is skyrocketing, not be­ ments by government and public utilities, in creating and cause foreigners have unfair prices, �ut because our govern­ maintaining improved basic economic infrastructure, is an ment's tax and credit policies have shut down the farms and

EIR May 23, 1986 Economics 7 I factories needed to produce for our own domestic needs. I "That is a repetition of what happened under Jefferson urr and Madison, through Albert Gallatin's 'free market' poli­ C ency Ra�es cies, causing the great depression of the 1815-18 period. That ! is what happened under Jackson, causing the Great Panic of I 1837. That is what happenedunder Polk, Pierce, and Buch­ The dollar in deutsche�arks New York late afternoo nfixing anan; that is what happened under the 'free market' policies I of the second Grant administration, leading into the disaster 2.50 - -- crises of the 1872-86 period. That was the cause of the ---t--_.f------i depression of the 189Os, the great Panic of 1905-07, and the 2.40 collapse of the U.S. economy under Coolidge and Hoover. j i Every time the U.S. adopted 'free market' policies, foreign 2.30 I'i '" �------financierinterests gobbled up large chunks of our economy ".- at bargain prices. 2.20 ' �-- - "What TreasurySecretary Alexander Hamilton . . . elab­ ----j ,- orated in his famous reports to the Congress, were the eco­ 2.10 3/26 412 nomic principles for which the United States fought its war 419 4116 I 4123 4130 517 5/14 of independence against the British monarchy, a total rejec­ The dollar in yen tion of the 'free market' dogmas of Adam Smith's Wealth of New York late afternoon fixing Nations. Every achievement of the U.S. eCQnomy has been the result either of the government's adoption and implemen­ 200 I tation of that American System, or of the continuation of , those economic ideas as an embedded part of our national 190 character and culture. Every economic disaster we have suf­ 180 1 fered over the past 185 years, has been the result of govern­ - ment's adoption of so-called 'free market' dogmas. , -- "Unfortunately, President Reagan exhibits total igno­ 170 "- ..... rance of the American System of Political-Economy, and of - 160 "-,..Ii-- the economic history of the fightbetween the American econ­ 3/26 4/2 419 4116 4123 41311 517 5/14 omists and the supporters of Adam Smith's policies over the past 223 years ." The dollar in Swiss fra ..cs LaRouche then stated that it was necessary to understand Adam Smith's dogma of the "Invisible Hand," as not actually an economic idea, but a "moral dogma," i.e., an attempt to remove all morality and accountability from economic poli­ cy, to appreciate President Reagan's blindness to the true state of the economy. "The President insists, that we must not impose moral goals upon the shaping of our economic policies. He insists, that no good will come to the average citizen, or the average nation, except as a long-term benefit of submitting to the 1.70 412 dogma of the 'Invisible Hand.' Only if we understand the 3/26 4/9 4/16 4123 4/30 517 5/14 perverse nature of Smith's dogma, can we understand why The British pound in dQllars an otherwise moral individual, such as the President, could New York late afternoon fixing see the economic cruelty of his policies, for farmers, indus­ , - -. trialists, minorities, and labor generally, as a symptom of an I.SO - 'economic recovery.' Only when these same economic pol­ ..,..",.. l .F"- icies threaten to destroy national defense, the President be­ 1.40, comes a bit restive; but, so far, he has preferred to defend I 1.30 Adam Smith, rather than the nation, whenever Smith and national defense come directly into fundamental conflict. 1.20 Since he is a patriot, we must assume thatthere is a breaking­ point, at which the President would dump Adam Smith for 1.10

4/2 sake of survival of our republic; so far, that breakingpoint 3/26 419 4/16 4/23 4/30 517 5/1" has not been reached.

8 Economics EIR May 23, 1986 ArgentinaiBrazil

The Austral and Cruzado Plans: wrecking the economy to be popular by Lorenzo Carrasco

The International Monetary Fund (IMF) and the international necessary." banking oligarchy have found a new, more effective way of But, aside from the immediate political aspect, the new imposing their austerity measures on our most indebted allies plans have already started to show their true results. Under in Ibero-America. Regimes previously weakened by the the Austral Plan, the longest in effect up to now, the decom­ monetary policy are accepting turning their economies and position of the Argentine physical economyhas gotten so bad countries over to usurious capital, in exchange for a fleeting that Argentina is on the verge of losing its famed food-pro­ political popUlarity based on demagogic wage-price control ducing capacity. programs. This new cosmetic treatment has been accepted by Argentina and Brazil, with their respective Austral Plan Parallel negotiations with the IMF and Cruzado Plan. Now, a big movement is afoot in inter­ As the cases of Argentina and Brazil show, the plans national financial circles to convince Mexico to apply the so­ were put into effect through paranel negotiations with the called Azteca Plan. IMF, while the "official"negotiations continued their course. The new model is not even new; it is patterned on the It is as if nations' dealings with the IMF were modeled on the policy which the League of Nations-which in the past played behavior of devalued Ibero-American currencies: The "offi­ the role of the IMF-imposed on the countries of Central cial" market is obeyed by nobody, and all transactions occur Europe after World War I. The new monetarist prescription in the parallel "black" market. is only greasepaint covering the actual "economic adjust­ Thus, the "official" negotiati�ns continued normally, ment," or contracting 25-30% of the physical activity of the while the "black market" negotiations with the IMF, in ac­ economy at one fell swoop. The reduction of wages and cord with the true conditions of "economic adjustments," public and private investment is part of this shrinkage. went on in absolute secrecy. In this "heterodox" way, the A wage-price freeze-while one fails to take effective Alfonsin and Samey governments vaunted their freedom from measures against domestic high interest rates, and tolerates signing up with the IMF, and basktd in the lUXUry of public the drain of vital resources in the form of debt service pay­ clashes and even threats of breaking with the Fund. The only ment-is nothing more than a short-term measure. It is as purpose of this charade was appareptly to build up the popu­ short-term as the popularity in the public-opinion polls it is larity of the economic programs they imposed in their own bringing to Presidents Alfonsin of Argentina, and Jose Sar­ name-the same measures the IMF had demanded. ney of Brazil. The governor ofthe U.S. Federal Reserve, Paul Volcker, In Argentina, President Alfonsin was induced to adopt advised and personally supervised , the parallel negotiations the plan in the face of the parliamentary elections late last and the implementation of these plans. It was for this purpose year, while President Sarney adopted the Cruzado Plan to that Volcker visited Argentina in November 1985. As former stave offthe imminent destruction of his government, with Argentine Chancellor Oscar Camilion pointed out-at the elections to the National Constituent Assembly coming up. cited seminar in Rio de Janeiro-the Austral Plan was im­ Sarney hopes that the psychological effect of the plan will posed by the bankers. Camilion w�s very explicit and men­ help him in the November elections. In Mexico's case, the tioned Henry Kissinger: "Good relations with the United IMF and its disciples have convinced certain financial au­ States constituted an implicit condition of recognition of the thorities to adopt an Azteca Plan to finally tear the heart out whole scheme, which, moreover, had been negotiated con­ of the suffering Mexican economy. The political effect here cretely with the Federal Reserve B�." is a bit different. As MIT economist Rudger Dornbusch pointed out at a recent seminar in Rio de Janeiro: "The adop­ Turning over economic sovereignty tion of the Azteca Plan would make Treasury Secretary Jesus Under the agreed-upon conditiqns, the Austral and Cru­ Silva Herzog the next President of Mexico." He stressed that zado Plans start from the premise of "adjusting to what ex­ "President de la Madrid is so weak that the Azteca Plan is ists," in available externalresour ces, causing the whole plan

EIR May 23, 1986 Economics 9 to revolve around the religious payment of debt service, not be very different. i which today means about 60% of the trade surplus of both In sum, these monetary me�sures provoked the flight of countries. Besides this measure, the programs try to reduce productive investments toward �nancial investments. While the federal budget deficit through cuts in investment and Argentina is undergoing total ej:onomic paralysis, the stock increased utility rates. market has gone up by 300%si�ce the Austral Plan has been Up to now, the most outrageous case is Argentina's, in effect. where the State gave up all its remaining sovereignty over credit. The text of the Austral Plan, made public on June 14, Wage reductions 1985, expressly prohibited the State from issuing money or The reduction of the public deficit is being achieved by credit not backed up in foreign currencies. Alfonsin said at cuts in productive investment, Jax hikes and the creation of that time: "The central bank would not require more currency new taxes, increases in public service tariffs, and above all, to satisfy the requirements of the Tresury. . . .Public spend­ by cutting wages. As was to be lexpected, the firstmonths of ing should only have genuine financing, which should abso­ the Austral Plan produced an �crease in tax revenues, but lutely not rely on the possibility of issuing [currency].The less than a year after its adoptidn, and as a sequel to produc­ credit capacity of the economy will be the product of a gen­ tion collapse, the tax revenues are falling to below the levels uine monetarization; i.e., credit will also not be the conse­ collected before the Plan. I quence of printing money." But the most scandalous �spect of both plans is wage Minister Sourouille is the one who definedwhat Alfonsin robbery by decree. At the mo�ent of the wage freeze, both meant by "genuine": "The governmentproposes to achieve a countries' unions were fightin� to gain back the cumulative fiscaldeficit of about 2.5% of Gross Domestic Product (GDP) loss in wages since 1983. At th�time of the freezein Argen­ . in the second half of the year. This figureincludes thedeficit tina, wages were 30%-35% bel�w the levels of January 1984; of the central bank and will be financedby the use of foreign in Brazil, the mininum wages stayed frozenat the equivalent credit granted by international institutions and banks. Start­ of $56 monthly, the lowest in ibeto-America and the lowest ing now, the public sector will have to meet its expenses with in Brazil itself since the end of World War ll. To carry out genuine resources-taxes and tariffs-and with external fi­ the same plan, Mexico would f.eeze real wages at 67% of the nancing. Therefore it will not be necessary to require credits 1983 levels. j from the central bank." As a direct effect of the adppted policy, the jobless rate "In other words, there will be no need to issue currency in Argentina has risen 1.5 % over 1984 and underemployment to finance the public sector. The government is convinced to a similar extent: in both cas�s, the highest rate in modem that the success of the policy being initiated depends deci­ Argentine history. In Brazil, t.e unemployment and under­ sively on control over fiscal accounts. This is its conviction employment rate is higher thaniin 1978. Although we cannot and also its commitment." yet evaluate theincreases provbked directly by the Cruzado This policy meant subjugating the economy and the cur­ Plan, it is clear that the grea� epidemic diseases were not rency directly to the dollar, and converting thecentral bank frozenby the packet, and, todat, all the great industrial cities into a mere branch of the U.S. Federal Reserve, a policy of Brazil arein a state of alert ause of pandemic outbreaks. �, which reached the ridiculous when the Argentine Treasury had to issue payments in dollars to its own central bank to Economy shrinks by 30% cover pending internal debts. Brazil has been adopting a The "economic adjustme�ts" are the reduction of the similar policy since the Bank of Brazil lost its capacity to physical economy by 20-30%.Thus, we have in Argentina, issue credit for economic development purposes, when the between 1980 and 1985, a niore than 10% drop in total "transfer-accounts" were shut down. production, and 20% in industrial production. The general standard of living is 10% beloTN that of 1980, while invest­ Interest rates rise ment has fallen by more thani 50%. In the last five years, By limiting the issue of money and credit, the Alfonsin capital-goods investment in �gentina has been negative. government guaranteed the most wretchedly recessive eco­ With the collapse of at least 2$% of grain production-the nomics, which are today suffocating Argentina in the worst mainstay of the Argentine ecbnomy-the Austral Plan is : economic crisis of its history. The credit austerity provoked reaching its end. a brutal rise in domestic interestrates, doubling them in real The international financial institutions hope that Argen­ terms.While nominally the interest rates fell fromabout 30% tina will become more and mbre docile, to apply the final in May 1985, to 8.9% in June and 7.2% in July, in reality, solution to its own economy.I Will Brazil follow the same monthly interest rates jumped from 1.8% on the controlled suicidal path as Argentina? Wi� Mexico be willing to impose market and 2.6% on the free market, to 3.6% and 5.8% the final Aztec sacrifice? Or will all three join the policy of respectively in the same period. For starters, the packet dou­ Peru's President Alan Garcia, Ito limit payments on interest bled interest rates to producers. And in Brazil, thestory will on foreign debt?

10 Economics EIR May 23, 1986 what had to happen under the IntQrnational Monetary Fund Mexico (IMF) programs. All the negative Indices which the govern­ ment now recognizes have been negative since 1982-83, when the oil prices had not fallen. The disaster was created by the monetarists in the cabinet, who now want to blame everything on the oil price crisis in order to continue to Drumbeat for an destroy the economy, since the on�y remedy they propose is more austerity and continued debt payment. 'Azteca Plan' What does the fall in oil prices and the fall in hard curren­ cy revenues mean? Originally a t6tal amount of exports of by Juan Cedilla and Carlos Cota $22 billion was foreseen, and imports for a total of $14 billion-or a surplus of $8 billion. Debt service payments for this year added up to $9 billion. With the oil price drop, Thereis a growing drumbeat, both inside Mexico and abroad, all Mexico has lost is its capacity to pay the foreign debt. for Mexico to implement an "Aztec a Plan" to deal with its This has nothing to do with the domestic economy, which atrocious economic crisis. Like the Austral of Argentina and went under long ago. the Cruzado of Brazil, this is not an economic program but a For example, the loss in tax revenues of the government psychological warfare plan against Mexicans in general and is due to the fact that the fiscal policy has been one more the trade unions in particular, to make them accept greater element of de-capitalization of the economy, which has both austerity in the face of the impossibility of continuing to pay fomented tax evasion and added on� more cost of production the foreign debt. together with the burden of interest rates which now top An Azteca Plan for Mexico would mean human sacrifices 130%. In tum, the zooming inte�st rates result from the as in the pre-Colombian era, when the Aztecs lived by sack­ measures the government has reson:.ed to, to financeits public ing other peoples and decimating their populations. The plan deficit by "self-loaning" itself its s�lVings deposits, in order has been the brainchild of the Monterrey Group, a conspira­ not to print money or take on more foreign debt. This has led torial group of "businessmen," since last year. Monterrey to a severe credit squeeze, since not only are interest rates Group spokesmen have described it as consisting of: a) sub­ rising, but the reserve requirement has gone up for the com­ stantially reducing the public deficit through spending cuts mercial banks. As a result, the interest the government has and tax hikes; b) total suspension of loans by the centralbank to pay for its internal debt for 1986ltotals 8 trillion pesos-a of the government; and c) depreciation and stabilization of substantial part of the budget. exchange. The complementary measures would be, they say, eliminating the system of indexing between wagesand prices, Chain reaction eliminating foreign credit for the transition period, and adop­ The budget cuts have also forced the state and semi-public tion of a new monetary unit. sector of the economy to suspend payments to their private After three years of insisting that the International Mon­ venders, who, in tum, are suspending payments to the com­ etary Fund's program was helping Mexico's economy to mercial banks, tottering under the iflcrease in overdue paper recover, suddenly the Mexican governmenthas admitted that andbad debt. Making things worse, !the government,to avoid the economy is not only not on the upswing but collapsing in chain bankruptcies of both banks and businesses, is privately an deafening fiasco. The official recognition came in the negotiating tax exemptions with the businessmen so that they Annual Report of the Bank of Mexico on the national econ­ don't declare themselves insolvent. 'This is of course another omy. Despite a violent faction fight inside the economic blow to fiscal revenues. cabinet for the report not to come out in that form, the director This is why Planning and BUdfet Secretary Salinas de of the Bank of Mexico, Miguel Mancera Aguayo, blamed Gortari announced a budget cut of 'only" 500billion pesos, Treasury Secretary Jesus Silva Herzog and Budget and Plan­ arguing that more cannot be cut because of the risk that the ning Secretary Carlos Salinas de Gortari for the fiasco. economic apparatus will fall apart� When the 1986 budget The report says the drop in tax revenues, in the interna­ was approved, it was said that it "cannot be less nor can it be tional reserves, and in the savings deposits of banks, along more." Officially it is recognized that as far as budget cuts with skyrocketing interest rates, capital flight, the unman­ go, "We've arrived at the bone marrow."The domestic econ­ ageable mess of the foreign debt, and the runaway domestic omy is exhausted and the drop in oil. prices only sped up the debt, are due to "errors of instrumentation, laxity, and errors recognition of the failure on the partof the government. The in foresight" of the two above-named secretaries. Although only meaningful thing about this new cutback is that, as they are responsible for the disaster perpetrated by the IMF, always, it does not touch payments on domesti<: and foreign Mancera Aguayo has been complicit in the whole mess. debt, which adds up to 47% of the federal budget. And this In reality, what is happening to the Mexican economy is is wh�re the "Azteca Plan" comes in.

EIR May 23, 1986 Economics 11 Agriculture by Marcia Meny

Drought could be the last straw the opposite. The measuresit imposes Addedto the unprecedented acreage cuts, the drought hitting on U.S. fanners marginalize an al­ many fa rm states equals a crop emergency looming this year. ready failing farm sector, and thus drastically worsen the impact of the current bad weather. The farm law mandates significantly lower price T he drought that has parched much Virginia; and 2) the south-central supports-but offers financial in­ of the U.S. south, plus the huge 1986 states-west Texas, the Oklahoma ducements to a desperate farmer for food acreage cutbacks and cropland panhandle, western Kansas, and east­ contracting to remove large amounts retirement programs this year, add up ern Colorado. of crop land into the set-aside pro­ to a foreseeable emergency food situ­ Farmers have held up planting in grams.Then there is the unprecedent­ ation that needs action now. Farmers the parchedsoutheastern region, until ed "Conservlltion Reserve," that in­ are already laboring under an impos­ the pointthat almost guarantees a crop duces farme� to retire cropland from sible burden of debt and income short­ failure. foodproduction for 10 years-in fact, fall, and they cannot withstand the The general endangerment to all permanently. added pressure of bad weather. Yet, crops caused by the early-in-the-year This yeaIj, U.S. farmers have con, Washington policymakers are ignor­ bad weather is shown clearly in the tracted with 'the government to take ing the food supply consequences so national picture for wheat (three­ 43.9 million acres out of grain and clearly ahead, and instead, fixatingon fourths of which is winter wheat, cotton produbtion. This is quite a bit internationalfood trade warfare. planted in the fall). more than last year's set-aside of 34 The climatic problem is the high The USDA crop projections­ million acres. In the "Conservation pressure system that has been sitting known to commonly overstate crop Reserve" pl�, 5 million acresare tar­ over the southeastern partof the North estimates, in deference to the food geted to be taken out of productionthis American continent, and blocking out cartel interest in justifying low pay­ year, of whiqh, so far, about 889,000 moisture from the Gulf of Mexico that ments to farmers-already have been acres have �en contracted for retire­ usually circulates in late winter and revised downward for the 1986 sea­ ment from fqodproducti on. spring. For some regions, this contin­ son. The nation!llpro jection is that the The foll�wing are the USDA's ues many previous months of subnor­ U. S. wheat crop will dropthis year to conservativeiestimates of wheat crop mal precipitation. 59.3 million tons, 10% below last reductions iq top wheat states (based The National Weather Service year's 66.0 million tons, and 16% be­ on May 1 cOJllditions): (Department of Commerce) in Atlan­ low 1984's 70.6 million tons. Com is Kansas dpwn to 330 million bush­ ta, reports that less than eight inches expected to be down by 14% fromlast els, fromlas� year's 433 million. of rain has fallen there since Janu­ year, to 235.3 million tons. And these Colorad6 down to 110.2 million ary- 12 inches below normal. The are only earlyestimat es. bushels frorri last year's 134.55 mil- first four months of this year were the The drought has destroyed half of lion. : driest ever recorded. In themulti-st ate Alabama's $50 million wheat crop, Texas down to 119.6 million Tennessee Valley Authority area, a 23- and the same percentageof South Car­ bushels from 1985's 187.2 million. month dry spell has transformed the olina's. Alabama Gov. George Wal­ Oklahoma down to 145 million Tennessee River into a "pea green" lace has called for federal disaster bushels froID!last year's 165 million. flow of algae-filled, low water. emergency assistance. Because of the In 1983, ilDdertheUSD A's PIK­ The dryregion extends all the way ever-present possibility of bad weath­ Payment-in-f{ind-program, there into Virginia, where 97% of the soils er, government food and farm policy was an unprecedented land set-aside have a reduced moisture level. Hard­ should always serve the national inter­ of close to 75 million acres of grain est hit are the southeastern, and south­ est in buffering farmers financially, and cotton. A severe drought hit the central states. The USDA list of the when needed, and in maintaining a farmbelt in mid-summer, and parched farm states most affected includes: 1) national livestock inventory and crop the com, soybeans, fodder, and other the southeast-Florida, Georgia, base large enough to guarantee food crops. The cOm harvest was reduced South Carolina, North Carolina, Ala­ security and "bounce-back." by 50%. And the soybean crop was bama, easternKentucky and Tennes­ The latest four-year farm law, the cut by almost a similar amount. That see, and parts of Virginia and West Food Security Act of 1985, does just should have taught a lesson.

12 Economics EIR May 23, 1986 Labor in Focus by MariannaWe rtz

The NDPC labor candidates ar Freeze. Many trade unionists are among the nearly candidates 1 , 000 In Idaho, where a right-to-work running on the slate of the LaRouche-linked action group . bill is pending before the state legis­ lature, Marvin Sawyer is runningun­ opposed inthe Democraticprimary for state representative in the 13th Dis­ trict, Seat A, Nampa. The Idaho pri­ Many leading candidates seeking Strategic Defense Initiative. When mary election is May 27. Sawyer is an election in Democratic primaries as Blanchard refused, Wilson an­ active member of the United Food and part of the National Democratic Poli­ nounced that he's nicknaming the Commercial WorkersUnion, working cy Committee slate this year are active governor "Ducky," since he's always as a beef boner for one of the larger officials or members of trade unions . "ducking the issues ." The Michigan meat processers in the west . Sawyer Their campaigns are receiving plenti­ primary is Aug. 5. is opposing the main sponsor of the fulmedia attention, partlybecause they Juan Cortez is a candidate for the right-to-work legislation, Republican are running in the face of staunch op­ Democratic nomination for U. S. Sen­ Mike Strasser. He is fighting, he says, position fr om the "official" bureauc­ ate in Iowa, where the primaryis June to change Idahd's anti-progress eco­ racy ofthe AFL-CIO, the United Auto 3. A lifelong trade-union and black nomic policies. A big sign greets trav­ Workers, and other unions, whose al­ leader, Cortez was, until recently, elers in Boise, tije state capital: "Wel­ legiance to the corrupt liberals who president of the A. Philip Randolph come to Idaho. Set your clock back 16 run the Democratic Party has driven Institute Cedar Rapids Chapter, and is years." working people out of the party in an active member of the Cedar Rapids Kent Herschbach, a truckdriver , droves . Theircampaigns are taking the Human Rights Commission. Despite is shop steward! in the International economic and defense policies for­ his years of work on behalf of the Brotherhood of Teamsters local in St . mulated by the leading traditional Democratic Party and trade-union Paul, Minnesota. His campaign for Democrat, Lyndon LaRouche, and the causes, Cortez has had to battle for the U. S. Congress in the Fourth District NDPC directly to the population, in­ right to bring his program to audiences is part of a statewide "harmony of in­ cluding trade unionists, despite the ef­ in Iowa, facing what he has termed terest" slate, he�ded by farmer Andy forts of Lane Kirkland and his cronies "tyrannical" opposition from the Iowa Olsen for gove�or, which also in­ to squelch any real solution to the AFL-CIO. Cortez, also active in his cludes two other farmers, a house­ depression. church, was recently written up as a wife, and a physician, among more Henry "Hank" Wilson, a 32-year "model Catholic" in a feature article thana dozen announced candidates for veteran of the United Auto Workers, in the National Catholic Register. the Sept. 9 primary. is running an aggressivecampaign for In California, more than 120 can­ Herschbach .has been particularly governor of Michigan. Wilson, cur­ didates are running for state and fed­ concerned with giving direction to the rently on medical leave, is a member eral office on the NDPC slate, in the Hormel meatcuUers strike of Local P- of the UAW Local 600General Coun­ June 3 primary. A leading candidate 9 in Austin, which has gained national cil, and former president of the Dear­ is Jim Legare, in the 6th District, en­ attention as a rllllying point against bornAssembly Plant UAW Local . His compassing Oakland and other indus­ austerity. Herschbach called on the years in auto work began in the 1950s trial sections of the Bay Area. Legare, strikers to join him in working for an heyday of Walter Reuther; Wilson was former financial secretary of Oilers and "international movement against aus­ one of the union fo under's earliest Firemen Local 486, San Francisco, is terity ," targeting the International proteges. active as a rail worker and unionist. Monetary Fund's policies, to avoid the Wilson has made himself a house­ After the March 18 victory of two pitfalls oflocalistnand empty militan­ hold word in Detroit, with numerous LaRouche Democrats in statewide cy into which the strike has fallen . appearances in the media and on talk races in Illinois, Legare's campaign Only that solutiQll, Herschbach says, shows. He challenged Governor James for Congress is being taken "very se­ "can rally the 'fQrgotten majority' of Blanchard (D) to debate such crucial riously," according to his opponent, Americans" to fight for their "harmo­ issues as the AIDS epidemic and the liberal Democratic incumbent Bar­ ny of interest"in expanding the world role of Detroit's auto industry in the bara Boxer, an advocate of the Nucle- economy.

EIR May 23, 1986 Economics 13 BusjnessBriefs

Bio-Technology toward Foreign Minister Giulio Andreotti, are that United Mizrahi Bank head Meir will had reported a deal under which the Libyan resign tomorrow. EPA approves use of Arab Foreign Investment Company (Lafico) "Second, his brother has put an ad in the last January bought 70% of Tamoil , the for­ papers calling Recanati a bastard, and say­ bacteria against frost mer Italian branch of the U. S. oil company ing that what Raphael is doing now is only Amoco. confirmation of the unethical behavior that The Environmental Protection Agency an­ Lafico also owns a 15% interest in Fiat. led his brotl).erto cut offcontacts yearsback. nounced in mid-May the approval of a long­ The vendor was First Arabian Corporation, Third, the word here is that his behavior, if delayed experiment by the University of a company run by Mr. Roger Tarnraz, a it continues, could be of great harm to his California to reduce frost damage to pota­ Lebanese entrepreneur close to the Gemayel own bank." toes by releasing gene-altered bacteria into family and backed by Saudi interests. the soil. Twenty percentwas boughtby the Swiss­ Jack Moor, assistant administrator for based company Seasa, which is linked to Internatipnal Trade pesticides and toxic substances for the EPA, Socialist Party member Giorgio Mazzanti, said scientific review shows the bacteria former president of ENI, the state-con­ German Exports to trolled oil company. Mazzanti who was ap­ "pose minimal risk to public health or the U.S.S.R. dropping environment. " pointed as head of Tamoil, is a close friend Jeremy Rifkin, the leftist whose anti­ of Andreotti. progress, anti-Christian conceptions have Exportorders to the Soviet Union are rap­ gained much support from misguided fun­ idly disappearing, according to discussions damentalists and whose suit caused the orig­ The Invisible Hand withleading West German industry sources. inal delay of this experiment, said he would The National Statistics Office released again sue the EPA, this time for not requir­ Two bankers down-but figures on ;May 14 showing that German ing University of Californiaat Berkeley and exportsto theU . S.S .R. had dropped 9% for other experimenters to have liability insur­ one refuses to go the firstqu�er of this year. ance against a remote possibility accidents Germruk Economics Minister Martin may occur. ErnestJaphet, chairman and chief executive Bangema�'s highly touted trip to Moscow Rifkin, "president of the Foundation on officer of Israel's leading bank, Bank Leu­ in April, resultedin no new orders. In fact, Economic Trends," also said he wanted to mi, announced his resignation on May 12. according to industry sources, long-dis­ build local pressure to persuade local offi­ A statement issued by Bank Leumi said that cussed talks for exportof multi-billion-mark cials to ban the experiments. Japhet resigned "with great regret." industrial projects from VW, UHDE, and Earlier this year, a similar experiment The resignation comes as the result of Lurgi are all either being scaled drastically on strawberries was banned by an ordinance the reportreleased in mid-Aprilby an Israeli down or frozen. Bangemann has privately in Monterey County, California. commissionof inquiry, headed by Supreme argued that export orders to the U.S.S.R. Court Justice Moshe Bejski, that was an in­ would bej�pardized by collaboration with dictment of banking practices in numerous the U.S. �trategic Defense Initiative pro­ major Israeli banks-Bank Leumi, Dis­ gram. International Trade count Bank, BankHapoal im, United Mizra­ hi Bank, and others . The report demanded Craxi seeks foreign the resignation of the bank heads, including Japhet. Debt Crisis purchase restrictions Japhet's resignation statement attacked the Bejski report for having "failed to seri­ Mexican government When Italian Prime Minister Bettino Craxi ously relate to the country's economic con­ arrived back in Italy on May 7 from the ditions andthe changes in the domestic cap­ scraps steel plant Tokyo summit, he announced thathe would ital markets" during the past years . be seeking legislation to require the govern­ The reaction of another bank president, Mexico is fcrapping Fundidora Monterrey, ment and parliament to be "at least in­ Israeli Discount Bank chairman Raphael an old steel rolling plant which employees formed" when Italian industriesor sales net­ Recanati, is, according to the Israeli press 11,000 workers, and provides indirect em­ works were sold to foreign buyers. of May 12, an hysterical, "I refuse to go!' ployment to77 ,000 others . "I only discovered from the newspapers "It could get hot for Recanati," a Jeru­ The W(lll Street Journal quoted a U.S. that Libya had bought 1,700 filling stations salem source told EIR on May 13. "First, banker th� the move "is a quantum leap in Italy," Craxi said. he's the only one resisting: BankLeumi head forwardfrom all those diddly state compa­ The press, which took a critical attitude Japhet resigned yesterday, and the reports nies they were selling a few months ago."

14 Economics EIR May 23, 1986 Briefly

• THE BUROPEAN Community The Journalconclude s, "While unions have ogy work on the space station in 1993 or is demand�ng that Spain further cut remained quiet so far , the massive layoffs 1994." its production of steel by more than 3 that any industrial reconversion will bring There is no question that a Mars mis­ million tons, for a 30% cut overall. threaten to shatter that peace. " sion-an estimated 700-day round-trip This will mean the loss of between This is the firsttime in Mexico's history, journeygiven present propUlsionsystems­ 10,009 an� 20,000 more jobs. In­ according to the Mexican newspaperEl Fin­ would require technology not yet devel­ stalled capacity is about 21 million anciero on May 9, that the government has oped. "The mission duration will be an order tons, present production stands at un­ officially declared the bankruptcy of a state of magnitude greater than any previousmis­ der 14 million tons. company. sion or any other near-term future mission A total of 8,000workers fromFundidora and will require new levels of reliability and • ATLANTIC CITY casinos will will be"relocated" as a result of the closure. maintainability," a NASA report said in be allowed to have 24-hour per day On May 13, steel workers from the plant 1985. gambling for an experimental period held a demonstration in front of the state The Russians have suggested the United of 15 months if the New Jersey State capital, chanting, "We want work, not sev­ States join them in a Martian sample mis­ Assembly IWopts legislation (A- 1946) erence pay ." sion. However, Barney B. Roberts, a plan­ passed on May 8 by the assembly's The union claims that the declaration of ner in NASA's Houston office, said the So­ committee : on Independent and Re­ bankruptcy, made by the governmenton May viets may be using a Mars proposal as a way gional Authorities. 2, is technically flawed. of trying to deflect U.S. technology away Finance ministerJesus Silva Herzogsaid from the Strategic Defense Initiative. • THE PHILADELPHIA Naval the government was scrapping the plant and Shipyard has slated about 8,000jobs refusing to honor its debts in order "to con­ for eliminlltion over the next 16 tinue with the program of internalrationali­ months, according to a U.S. Navy zation of our industrial apparatus. . . . " Agriculture memorand�m. Six of 18 ships as­ signed to tie overhauled at the yard Secretary Lyng's during the pext three years are being dropped, and the work force could Space 'message to Europe' drop from 9,211 to 6,200 by the end of Septemqer 1987. The U.S. to create Agriculture Secretary Richard Lyng says that he still plans to retaliate against Europe's • FORD MOTOR CO., the sec­ a 'Highway to Space'? quota policies, even though the Tokyo sum­ ond-largesf auto company in the mit produced an historic agreement to re­ world, plans to eliminate up to 25% A presidential cornmissionwill soon release duce farmsubsidi es. of its salaried employees in North a report recommendinga bold, 50-year plan "We will take some harsh action, and I America by 1990 . The cuts could af­ that will pave a "Highway to Space." Enti­ know there's widespread support for that, fect 13,000 jobs, company officials tled Pioneering the Space Frontier, the re­ and I hope the Europeans are getting the stated on May 8. Since 1983, Ford ' portcalls for permanenthuman settlements message," Lyng said on May 8. has closed 15 plants and eliminated on the moon by 20 17 and on Mars by 2027 . "From an agricultural standpoint, some­ about 20% 'of its white-collar work­ The study urges Americans to spend$700 thing necessary and different, and I think force worldwide . The firmis current­ billion on space between 1995 and 2020. historic" emerged from the Tokyo summit, ly expandiqgjoint-product work with Thomas O. Paine, head of the IS-member Lyng said to the Commodity Club in Wash­ the Japane�e firm Mazda, allowing National Commission on Space, told re­ ington, D.C. At the same time, however, he the lay-off �f further engineers. porters in mid-May, "The United States accused the Europeans of having a "rather should be the country that leads mankind self-centered agricultural policy" of increas­ • PEKING will freeze oil exports into space." ing incentives to production, overproduc­ to support OPEC efforts to stabilize "The popular feeling out there is to be tion, and dumping exports. the world oil market, a senior Chinese bold," said Paine, commenting on public American unwillingness to do the same official, state councilman Zhang reaction at hearings held by his commission thing, he said, "is bringing these major pow­ Jingfu, told the Kuwait Timesin early around the nation in the past year. ers to the bargaining table." The new U.S. May. He saidthat China, Asia's big­ In a related development, Jesco von farm program, which lowers U.S. prices, is gest crude producer, would hold oil Puttkamer, a long-range planner at NASA's causing concern among rice producers such exports in 1986 at last year's level of headquarters in Washington, stated: "If you as Indonesia and Thailand, and among grain 30 million t�ns, equivalent to 600,000 want to flyto Mars in 201 1 and land in 2012, exporterssuch as Canada, Australia,Argen­ barrels perday . you have to start related advanced technol- tina, and the European Community.

EIR May 23, 1986 Economics 15 TIillScience &: Technology

Italy's role in thecoming scientificrev olution Giuseppe Filipponi. physicist and director ojItaly 's iFusion Energy Fo undation. traces the Italian hydrodynamics schdolJrom Beltrami's vortices to the hypersonic airplane ojFe rri.

What fo llows is the sp eech Dr. Filipponi delivered to the Piedmont in the position of being able to militarily sustain conference on "From Leonardo da Vinci to Hypersonic Flight: the campaign to unify Italy. Italy's Contribution to Economics and Defense. " on April Hence, despite the historyb60ks which continue to claim 29. 1986. The conference was held in Rome under the co­ that Italy was liberated from foreign domination and unified sp onsorship of the Schiller Institute and the Fusion Energy by gnostic freemasons like Maz�ini or by Garibaldi's military Foundation . prowess, the truthis that the modem Italian state was founded thanks to the combination of the political capacities of Cam­ As is clearly shown by the role of Leonardo da Vinci in the illo Benso di Cavour and the �pirations of this network of Italian Renaissance and Leibniz' s activities between the 17th republican scientists, whose ide�s were made accessible even and 18th centuries, the European hydrodynamic school is to the most humble strata of the population by the music of historically linked to political activities directed toward the Giuseppe Verdi. constitution of republican states based on scientificand tech­ Betti, Cremona, Casorati, Brioschi, and the others not nological progress, and hence on the cultural advancement only organized corps of volunteers from all over Italy in of the citizens. support ofthe Piedmontese army, but they themselves, when This is precisely the case of the great hydrodynamic school the need arose, became militatt leaders, organizing the fa­ that developed in Italy in the middle of the 19th century with mous "Five Days of Milan," the defense of Venice, and the decisive contribution of BernhardRiema nn, who moved distinguishing themselves in the most violent Risorgimento from Gottingen in Germany to Italy and spent the last years battles and insurrections. Their role was especially crucial of his life between Pisa and Lago Maggiore. after unification, when, as Cavour said, "having made Italy, Enrico Betti, Francesco Brioschi, Eugenio Beltrami, Fel­ we must now make the Italians." ice Casorati, Luigi Cremona, Mossotti, and Carlo Matteucci Cavour's plan was to build UP, afterunifica tion, the main were the main spokesmen of this school, which played a educational centers, and hence start the accelerated indus­ decisive role in the political and military battles of the Risor­ trialization of the country, basing it on the use of the most gimento that led to the formation of the Italian nation-state. advanced technologies of the tiqte, such as electrical energy. It is no accident that between 1840 and 1860 the "Annual "Italy has more energy in the poiwer of its waters falling from Congress of Italian Scientists" became a focus of patriotic the Alps than England has with Ute coal in its mines," Cavour conspiracy, so dangerous that in 1850 two orders were is­ said in his celebrated speech to the Piedrnontese parliament sued, one by the Austrian governorof the Lombardo-Veneto in 1855, the occasion when he 1 announced the great project territory, and the other by the Vatican Curia, forbidding their of the tunnel of Moncenisio. These scientists were exactly subjects to participate. the peoplewho could tum Cavok's plans into reality, putting This was the period in which the Count of Cavour had together educational, research, and industrial centers, and imposed a program of forced industrialization on Piedmont, thus making Italy the first country of the world to generate the so-called Cavour Decade. This program, tenaciously pur­ electrical energy industrially. The contribution the Italian sued despite the opposition of the ruling House of Savoy, put scientists made in those yearS to the development of the

16 Science & Technology EIR May 23, 1986 technology of electricity was decisive; it is because of them that an energy source, previously used only for lighting , FIGURE 1 became available as a power source for industry . Analogy between fluid-dynamic and It is said that the then very young Antonio Pacinotti , a electrodynamic phenomena student of Mossotti in Pisa, had invented, during the Battle (a) Magnus force of Goito of the Piedmontese against the Austrians, the so­ called Pacinotti Ring; that is, the collector that permits an efficienttransformation of mechanical energy into alternating electrical energy. Since the principle of the transformer was v already known, alternating electrical energy produced by hydroelectric or thermoelectrical power, could then be effi­ ciently transported even to a distance of several tens of kilo­ meters, but still missing was an efficient system to retrans­ form such alternating energy into motor power. The motors v = velocity WI = cl. rcu I'aMn developed were all very inefficient, and it was also not found Lorentz force I very fruitful to retransform electrical energy from alternating (b) . to direct current for use. For this reason, electricity was used s' / only for lighting. The various attempts to develop an efficient electrical motor were also often impeded by strident arguments. Lord Kelvin, for example, opposed any research in this direction, stating that all use of alternating current other than for light­ ing, would be harmful to the human body-the same objec­ tions that today's ecologists raise against nuclear energy. s N Despite the technical difficultiesand the backwardness of the S scientific world of the day , an Italian scientist, Galileo Fer­ raris, a student of Enrico Betti , thought up the concept of the rotating magnetic field, from which was derived the technol­ ogy that made it possible to build an efficient motor fed by alternating electrical energy-the modem electric motor. Unfortunately, because of Cavour's death right after Ital­ ian unification, the project of developing a basic steel and mechanical industry in Italy that could put the country on the level of the most advanced in Europe , failed . From the finan­ cial and economic standpoint, the new Italian state quickly fell into the clutches of the Anglo-Venetian oligarchy of the Rothschilds, who prevented any attempt at industrialization. Nonetheless, Enrico Betti soon became general secretary of the Ministry of Education and Luigi Cremona became its minister; Casorati and Brioschi were elected senators , and thus they took education policy in hand. Under their direction , the Naples Polytechnic Institute was founded and that of Turin expanded, together with that of Bologna and the University of Pavia. Brioschi founded the Milan Polytechnic, Cremona the Engineering School of Roma, and Betti the Normal School of Pisa. The scientificand technical potentialities created by these institutions were soon considerable; hence, when the Giolitti (a) Beltrami's depiction of the analogy between the action of government in the 1890s and the first decade of the 20th fluid dy namic vortices (top) and the electromagnetic action of century , impressed a relatively more patriotic direction on electrical currents. V is velocity, w is circulation, I is electrical the national economy than before , the Milan and Turin Po­ current, B is the magnetic field due to the current, and B, is the lytechnics, in particular, became driving centers for industri­ magnetic field due to the current. (b) Photos showing the similar pattern·s of streamlines in water al and technological development. Just to give one example: (top) and magnetic field lines created by a magnet applied to In 1883 near Milan, Brioschi's successor, Giuseppe Colom­ iron filings. Crystals of potassium permanganate dropped into bo, built the first European electric power plant. the water make the streamlines visible.

EIR May 23, 1986 Science & Technology 17 This historical overview is important to locate the work

FIGURE 2 of Eugenio Beltrami, student and then colleague of Betti and Riemann and perhaps the most gifted exponent of this school. Formation of a pair of force-free filaments in As Betti explicitly reports, the contribution of Bernhard magnetic plasma Riemann to the Italian hydrodynamics school was decisive for burning all the bridges with the algebraic methods that B, / -B,/ the Jesuits had imposed on Italy's system of schools and universities. It is important to realize that the Jesuits con­ trolled practically the whole educational system of the var­ ious states before national unity, where algebraicists like Ruffini and other personal friends of Baron Augustin Cau­ chy, who had corrupted the Ecole Poly technique of Paris after Lazare Camot was chased out, were pervasive. The role of Riemann was therefore fundamental in pushing Betti, Brioschi, Casorati, and Cremona toward synthetic geometry and mathematical physics. Ironically, in official histories of science, Betti and Bel­ trami are remembered as teachers of the theory of elasticity. What is not reported, however, is that Betti and Beltrami in particular developed this theory to be able to demonstrate that Maxwell's interpretation of electrical and magnetic phenom­ ena, like tension and pressure in an elastic medium, was wrong. In his paper "On the Mechanical Interpretation of Maxwell's Equations," Beltrami demonstrated that with Maxwell's hypothesis of elastic ether, the propagation of electrical and magnetic potential can be explained only if such potential is of the type generated by systems whose geometrical configurationcan be reduced to a single (simply connected) point. For every more complicated case, how­ ever, it fails. Thus did Beltrami dismantle Maxwell's mechanistic hy­ pothesis of an elastic medium as a "conductor" of electro­ magnetic phenomena. What is Beltrami's hypothesis on electromagnetic phe­ nomena? The hypothesis is presented implicitly in the first researches into hydrodynamics presented by Beltrami from 1871 to 1874 at the Academy of Sciences of Bologna. Ac­ cording to Beltrami, electromagnetic phenomena can be ex­ plained as hydrodynamic phenomena, and vice versa. In these papers, which are collected under the title "Re­ searches into the Kinematics of Fluids," Beltrami develops in the three-dimensional fieldthe theory of the potential gen­ erated by fluid-dynamic vortices and hence the analogy be­ tween the action of vortices and the electromagnetic action of electrical currents (Figure 1). This conception is not original with Beltrami. Riemann developed the theory of complex-variable functions precisely to deal in a unified way with hydrodynamic and electrody­ namic phenomena and those related to the transmission of The counterrotating pairs of vortical filaments of a plasma dia­ heat in the two-dimensional field. grammed here were discovered by fu sion scientist Winston Bos­ While Helmholtz in 1858 published the well-known ar­ tick in 1966, and are the same as those described by Beltrami. The photo, courtesy of Dr. Bostick, shows a plasma filament in ticle on vortices in which he pointed out that analogy with Bostick's plasma fo cus machine at Stevens Institute. The five­ the electromagnetic potential of electrical currents, there is nanosecond axial-viewphoto shows the vortex filaments ly ing in an important difference in approach between Helmholtz and the grooves of the corrugations of the current sheath. Beltrami. Helmholtz developed his theory basing himself on

18 Science & Technology EIR May 23, 1986 -I

. 1 the principle of conservation of the energy of vorticalmotion. the configuration, whereas outside it zero. In this research, He was not in the least concerned with explaining why the Beltrami was moved by the idea ofj nding all the possible vortex forms and what its successive evolution is. Beltrami, analogies between electrodynamics d electrostatics. In the however, concentrated his research on the various possible case of the "neutral solenoid," this anfllogY is obtained with configurationswhich fluid-dynamic vortices may have, with the distribution of electrical charges � the surface of a con­ the aim of investigating the principles of the functioning of ductor, for which the electrostatic action is exerted only on such systems. In other words, Beltrami studied the hydro­ the outside of the conductor, while it is zero on the inside. dynamic vortices just as the first technicians of flight experi­ The search for analogies between electrostatics and elec­ mented in water and then in air with the behavior of fluids trodynamics talces us directly to what I we said before on the around the profile of the wings, with the aim of identifying interpretationof the so-called elementary particlesas electro­ the laws of aerodynamics. dynamic force-free systems, subject to least action. From this standpoint, we can understand why Beltrami, In fact, by combining the work done by Riemann on instead of concentrating on the laws of conservation as Helm­ shock waves in 1859, "The Propagat�n of Plane Waves of holtz does, is mainly interested in research into the configu­ Finite Amplitude," with the study dont by Beltrami on force­ rations in which the fluid and, hence, the electrical currents, free vortices in 1889, "Hydrodynamic Considerations," we are subjected to the most particular and extreme conditions. have the key to resolving the paradox between waves and In the paper published in 1889 entitled "Hydrodynamic particles in the theory of Maxwell. Considerations," Beltrami probed the hydrodynamic config­ In other words, the most scientifically interesting aspect urations in which the lines of flux and the vortical lines are of physical processes are the so-called singular phenomena; always parallel; that is, an electromagnetic system in which that is, the points in space-time in which the physical phe­ the Lorenz force is zero and the electrical current, free from nomenon is no longer linear. forces, must not do any work against the magnetic field. Precisely through nonlinear transformations, in fact, Beltrami demonstrated that this case is not purely specu­ physical systems organize themselves according to distinct lative but real,and described accurately the geometry of these and well-defined physical-geometrical configurations, thus configurations, which he called helicoid. passing through states of greater complexity and energy den­ Beltrami's morphologyof filamentsis recognizabletoday sity. The so-called elementary particl�s, such as the neutron in the magnetic geometry of the spheromalc configurations and the electron, hence represent a certain level of organiza­ and the reversed field pinch [fusion reactors-ed. ]. More­ tion of electromagnetic energy. Nuclei, atoms, and mole­ over, Prof. Winston Bostick of the Stevens Institute of Tech­ cules represent a further self-organiz�ion of these particles; nology in New Jersey discovered the formation of force-free and even life does nothing but multiply the structural orga­ pairs of vortical filaments in plasma, as long ago as 1966 nization of such molecules in ever IIlQre complex and beau­ (Figure 2). tiful forms. Thus nature seems to behave in a way exactly Nature thus shows that it has a high degree of capacity to contrary to the Second Law of Thermddynamics. organize itself according to configurations that correspond to Riemann, in the cited work, demopstrated that such pas­ force-free systems and operate according to the principle of sages from one stage to the next are inigeneral nonlinear and least action. Research into these conditions can give us the that the singularities created by this �iscontinuous process, key to understanding physical phenomena such as the elec­ are not ephemeral but profoundly real,aust as the shock wave tron, the proton, the neutron, and the other so-called suba­ created by ajet in supersonic flight is real. tomic particles, considered not as elementary particles but as Beltrami then showed, in his "HyC!lrodynamic Consider­ complex electrodynamic systems. We can say the same thing ations," the geometric form that such lIingularities generally about those phenomena such as superconductivity, in which assume: a geometric form, however, jwhich has a very im­ resistance is close to zero and efficiency is maximal. portant physical meaning, by allowin$ the self-organization of the physical system according to a force-free system sub­ Particles as electromagnetic singularities ject to the principle of least action. Heilce, a configuration in Beltrami's research, even though it did not lead to a which the electrical current and the magnetic field areparallel general theory capable of explaining all electrodynamic phe­ or such that, as in the case of fluid dy�amics, it is the speed nomena, was always carried out in this spirit. In one of his of the flux that is parallel to the axis Ci)f rotation of the flow first papers, in fact, "The Mathematical Theory of Electro­ itself. dynamic Solenoids," Beltrami described the typical config­ A proof of the validity of the conceptions both of Rie­ urations of the machines that are being used to reach brealc­ mann and of Beltrami was only given ,as late as 1936, when even in thermonuclear fusion, such as the tokamalcs, stellar­ Prof. Luigi Crocco, having built the supersonic wind tunnel ators, and compact tori used to magnetically confine super­ at Guidonia with Antonio Ferri, set about studying the for­ heated plasmas. mation of shock waves around variOU$ wing profiles. In his Beltrami called these configurations "neutral solenoids" 1939 work, "A New Function of C�nt for the Study of the because the magnetic action is completely confined within Rotational Movement of Gas," Croccio showed that the or-

EIR May 23, 1986 Science & Technology 19 FIGURE 3 Electrodynamic model of the neutron

(a) B = magnetic field (c:) Force-free pl.ma filaments

Current sheet of a positive charge rotating as shown

Current sheet of a negative charge rotating as shawn

(b) In (a) the two flows of positive pnd negative charges are very close and move in opposite dire,ctions. Since their magnetic momenta are parallel, they are!added together, while the total charges is zero. It would be important to investigate the Azimuthal field characteristics of the neutron atcording to a fo rce-free, least­ action system. Such a system is( shown in (b) and (c), which are examples of plasmoids that selJiform in the hot plasma. Such an investigation can give us a dee1!er knowledge about phenomena like beta decay and nuclear ph�sics in general. In (b) the circulation of the cells produced by a "fountain-like pinch." The cells of circulationl are thought to be fo rce-free configurations. In (c), a plasma nodule, a toroidal solenoid is wrapped in a fo rce-free wire. !

ganization of air generated by a supersonic shock-frontis that fact, various indirect experiments on "scattering" were car­ of a vortex, with its axis of rotation parallel to the speed of ried out, with the goal of determining its form . Although the the flow of the air itself-a vortex, therefore, similar to the entire scientific community thought the neutron could be one described by Beltrami. described through the usual banal model of Rutherford-the The first significant attempt to explain the formation of positive charge in the middle and the negative one circulating the so-called elementary particles according to the concep­ around it-the experimentsi quickly showed that there was tions of Riemann and Beltrami, was made by Dr. Winston no charge in the middle of tbe particle, but empty space. For H. Bostick, in the InternationalJournal of Fusion Energy, this reason, some effort waS made to develop an electrody­ Vol. 3, No . 1, January 1985. Bostick's study, titled "The namic model of the neutron� as exemplifed by the essay by Morphology of the Electron," providesthe basis on which an Donald J. Hughes, "The N�utron Story ." This attempt was electron is depicted as an electrical Beltrami vortical fila­ abandoned when the esoteric methods of statistical mechan­ ment, whose mass is made up of the confined electrical en­ ics and quark theory got the Upper hand . ergy . Bostick showed that all the properties and characteris­ The first electrodynamik; models of the neutron were tics of theelectron are explicable with such a model. Follow­ mainly based on the flow of1two parallel electrical currents, ing his example, one could develop a model also for the one of positive charges and the other negative, around a neutron and the other "particles." toroidal configuration. According to this configuration, the The idea of developing a model of the electrodynamics electrical and magnetic fields completely encircle the outside of the neutron, among other things, is also not completely of the toroidal configuration!with the exception of the axis of original. Right after the neutron was discovered in 1932, in the torus, where the magnetic momenta of the two currents

20 Science & Technology ElK May 23, 1986 �� 4 . Schematic of a theta pinch machine and corotatlng and counterrotating vortex�s

(a)

z .

Median plane

A schematic drawing of the TRISOPS II experiment.

(a) Schematic of the TR lSOPS II theta pinch experiment ma­ chine designed by plasma physicist Dan Wells. (b) Vortical rings of fo rce-free plasmas, one corotational and the other counterrotational, produced in the central part of the ma­ Counterrotating vortex traveling tt> the right chine TR lSOPS II. Corotating vortex traveling to the left

are added together. The neutron, in fact, even though elec­ that at the speed of light the pinch would equal the electro­ tricallyneutral , has a magnetic momentum (Figure 3). static repulsion. Since such a pinch effect generates vortical structures in Aerodynamic approach to plasma physics the plasma similar to those described by Beltrami, free of The main difficulty plasma physicists run into is that of either Lorenz or Magnus forces or both , a study would be not being able to put in the right light the vortical phenomena necessary to investigate to what point such a pinch could be that occur in a hot plasma. In the plasma we find combined assimilated to a discontinuity such as that of a shock wave in both fluid-dynamic and electrodynamic phenomena, result­ aerodynamics (Figure 4). ing in the formation of vortices that are free from both Mag­ For these studies on plasma physics to proceed adequate­ nus and Lorenz forces. Such phenomena, however, are gen­ ly, it would be importantnot only for the physicists to acquire erally treated as unimportant "marginal effects," principally a certain familiarity with aerodynamic problems, but also for because the education of modem physicists, based on quan­ a certain number of skilled aerodynamicists, accustomed to tum mechanics and quantum physics, often literally does not dealing with vortices and shock waves, to concern them­ allow them to "see" such processes, which nonetheless have selves with plasma physics. a considerable physical importance. Just to give one example: One of tlile best treatises on the Thus, just as Prof. Luigi Crocco demonstrated that a generation of vortices is a critical essay of 1936 by Gen. shock wave generates a vortex, similar to the force-free Bel­ Gaetano Arturo Crocco, one ofthe founding fathers ofltalian trami vortices, in a hot plasma these kinds of vortices are and world aeronautics. In this essay, "Aerodynamics in A via­ very frequent and are generated by the phenomenon called tion," Crocco treats in a masterly way the formation of vor­ theta pinch. This "pinch" in the column of plasma, even tices around a wing in subsonic flight, the circulation, and though it is still a controversial phenomenon among physi­ then the harmonic generation of vortices in the opposite di­ cists, is reported to be due to the electrical currents in motion rection at the tail. Crocco also showed the formation of a in a plasma in opposition to the electrostatic repulsion, such Beltrami vortex on the end partof a wing in flight, something that the faster the charges, the stronger the pinch is, and such to which only marginal importanceis given, even today. The

EIR May 23, 1986 Science & Technology 21 1 construction of an airplane, according to Crocco,should give supersonicwind tunnel thenI¢xisting in the world. That tunnel maximum consideration to the generation of vortices. "It had been built on the mode( of the Hackerett Tunnel of Zu­ often has occurred," he reports, "that the tail of an airplane rich, but with a continuous electrical current motor of about in flight was suddenly destroyed because its structure was 2,850 kilowatt power, while the one in Zurich had a maxi­ resonant with the regular generation of vortices behind the mum power of only 900kilowatts . wings, and hence it acquired part of their energy in the form The wind tunnel had been built by Antonio Ferri and of vibrations. " Luigi Crocco (the son of Gaetano Arturo Crocco), and Ferri Today in plasma physics, we need such an attention, such ran experiments at it until l�43, when as a result of the war, a capacity to intuit and resolve problems from a fluid-dynam­ thecenter was closed and s�bsequently dismantled. ic standpoint, as we saw before in the physics of elementary In those years, Ferri utijized the supersonic wind tunnel particles. in Guidonia to study the various supersonic wing profiles, Again in the paper " Aerodynamics in Aviation," Crocco with very interesting results. He found, in fa ct, that the clas­ said, "Aerodynamics has pulled down from Olympus and sical theoretical scheme of :the formation of a shock wave humanized, by studying their generation and extinction, the systematically failed to agree with the experimentaldata , and vortices that Helmholtz had described as eternal Gods, with­ he showed that this discrepancy vanished when one corrected out birth and without death ." We could say the same thing the theory on the basis of tht 1936 study by Luigi Crocco on today for the elementary particles and plasma physics, using the generation of a global vqrtex of the fluid generated by the the ideas of Riemann and Beltrami. shock wave. Few in Italy today realize how importantthe participation The basis for supersonic flight of Italian scientists and tec�nicians was to the development "It was 1903 and the Wright Brothers had not yet flown, of world aeronautics. But the Americans knew it very well­ but in Italy General Moris in Rome had already set up the so well that Luigi Crocco was immediately invited to teach firstaerodynamic wind tunnel . In 19 14 then, the big double­ at Princeton University , and Antonio Ferri moved in 1945 return wind tunnel was built on Lungotevere Michelangelo first to the aeronautics research centerin Langley, Virginia, in Rome . Out of its mouth, 2 meters in diameter, came a and then to Brooklyn Poly technical Institute in New York wind of 200 kilometers an hour . No airplane had ever flown City. yet at that velocity . It became the object of visits by techni­ In the United States, Ferri found a situation somewhat cians from all over the world, who, when they came to Rome, behind in the aerodynamic field, and so he immediatelywent used to note down its address in their notebookstogether with to work writing what was .then the world's first book on that of St. Peter's and the Colosseum ." So wrote Gen. Gae­ supersonic flight, Supersonic Aerodynamics, making great tano Arturo Crocco in an essay on the history of aeronautics use of the experiments done with the Guidonia wind tunnels, in Italy, to demonstrate the international supremacy of Italy which are reportedin the book by the dozen. He then imposed in aerodynamic studies in those years and up to the Second on the Americans-not without having to overcome consid­ World War. erable resistance-the construction of discontinuous super­ In 19 19, 1920, and 192 1 Italian hydroplanes repeatedly sonic wind tunnels, thus giving the U. S.A. world supremacy won the international Sneider Cup for high velocity . Togeth­ in aeronautics for years to COme. er with Ferrariin Torino and Pistolesi in Pisa, Gaetano Arturo At the end of the 1960s, Ferri engaged in a new battle to Crocco was the father of the Italian aerodynamic school, convince NASA, the Pentagon, and other American govern­ which, together with that of Ludwig Prandtl and Adolf Bu­ mental institutions of the need to fund a project to developa semann in Germany, laid, in the 1930s, the bases for super­ transatmospheric aircraft ciapable of reaching hypersonic sonic flight. speeds up to Mach 12-theiplane that would have given the In 1935, Gaetano Arturo Crocco organized the Volta U. S.A. aeronautic suprematy even into the 21st century. Congress on high velocities in Rome, to which the greatest Such an airplane, according to Ferri's project, would world experts in aerodynamics came. Prandtl spoke of lift in have had to operate both in$ide and outside the atmosphere, supersonic flight, Busemann presented the supersonic wing, and, propelled by small rockets, also reach the lower Earth­ "slender as a Gillette razor blade," reports Crocco. orbits. As Ferri summarized in a speech to a conference of The centerpiece of the conference was the visit to the the American Institute of Aeronautics in 1975, such a hyper­ Center of Aerodynamic Studies and Experimentationof Gui­ sonic airplane, capable of landingand taking off horizontally donia (near Rome), where the Italian Air Force, under the like a normal airplane, of reaching to the lower orbits, and direction of General Crocco, had just completed the outfitting flying from Tokyo to Washiington in two hours, could offer of the world's most important center of aerodynamic re­ innumerable benefits both civilian and military: search, as it was then recognized internationally. 1) The construction of a fleet of hypersonic bombers In the Center there were four big subsonic wind tunnels, which at Mach 12 could traverse 1,600 kilometers in 10 a stratospheric tunnel, a big hydrodynamic tank, other small­ minutes, carrying a load of mega tonnage far superiorto any er tunnels, and-the crowning touch-the most powerful fleetof missiles, would be avery important deterrentweapon

22 Science & Technology EIR May 23, 1986 FIGURE 5

At the end of the 1960s, Antonio Ferri proposed to u.s. authorities the development of a supersonic airplane, which would have assured the United States supremacy in the aerodynamic and space field into the next century. The illustration shows a Lockheed design fo r a passenger airliner of the sort Ferri proposed. The concept includes a dual propulsion system with both conventional turbojet engines and supersonic combustion ram jet engines fu eled by liquid hydrogen . The flight timefrom Los Angeles to Tokyo would be 2 hours and 18 minutes. vis-a-vis the U.S.S.R. the medium and long term extremely profitable. In short, 2) The fu ll accessibility from Earth to the space stations good business, in the best tradition of the American economic deployed in low orbits, as well as the reduction of flying system, and proposed, obviously, by a firstgeneration Italo­ times from the present air transports on trips of7 ,000 to 9,000 American ! miles, from 18-20 hours to about 2-3 hours . Unfortunately, the American government found Ferri 's The main motivation with which Ferri supported his proj­ plan incompatibile with its budget, and therefore what was ect before the U.S. government, Congress, and public opin­ adopted as a result was a much more economical and obvious­ ion, was based on cultural optimism. ly limited version-the Space Shuttle as we know it today . In the previously cited speech of 1975 , Ferri presented a Despite the advantages the Shuttle offers relative to tra­ graphic showing that most of the world population lives at a ditional launching rockets , it clearly cannot be compared to distance of 7,000 to 9,000 miles from the United States in what Ferri proposed in terms of possible civilian and military the very poor zones of Asia, Latin America, and southern applications. Anyway, recently, aftertwo American govern­ Africa. In the future , Ferri said, industrialization and the mental agencies, the Defense Research Projects (DARPA) economic development of these areas would lead to an ex­ and the President's Officeof Science and Technology Policy, ponential increase in travel between these nations and the had maintained the need to develop a hypersonic plane in the United States. Think of India with 800 million people, think framework of the Strategic Defense Initiative, President Rea­ of China which is about to surpass a billion, he said. There­ gan in his 1986 State of the Union message in early February fore , the project for a plane that would shorten these trips announced the launching of the project (Figure 5). from 20 to 3 hours , even if initially very costly, would be in So, Ferri 's ideas have also won their last battle.

EIR May 23, 1986 Science & Technology 23 Kissinger in new offensive to destroy We sternAll iance

by MarkBurdman

A dramatic escalation in the campaign by Soviet fellow­ EIR founder Lyndon LaRou�he that Kissinger is a "Soviet travelers in the United States and WesternEurope to "decou­ agent of influence," since thd,piece is entirely based on one ple" the two continents and transform Europe into a Soviet giant lie: that "the process of�issociation" in NATO is "ac­ sphere of influence, has been initiated by the syndicated celerating," and that "the U.'S. as well as its allies would column authored by Henry Kissinger, appearing in newspa­ make a mistake to paper over the cracks in the alliance that pers around the world during the May 9-12 period, calling recent events have made explicit." In fact, in the wake of the for "a major reassessment of the Atlantic Alliance." early-May Tokyo summit of advanced-sector nations, the The piece followed a literal "Kissinger invasion" of the relations between the allies, on the strategic front, has be­ European continent and GreatBritain . From April 25, through come better than ever, particularly concerning cooperation approximately May 8, Kissinger was in Europe, beginning against international terrorism. Kissinger's piece is targeted with attendance at a meeting of the secretive "Bilderberg to disrupt and undermine this new era of cooperation. Group" in Scotland over the April 25-27 weekend, and then From his lying premise, Kissinger argues that "the polit­ continuing with stopovers in Rome, Florence, Milan, and ical and military arrangemen� within the alliance will have Venice, Italy; Bonn, West Germany; and Stockholm, Swe­ to be adjusted. . . . The conGlusion, I believe, is unavoida­ den. ble: Some of the American forces now in Europe would This might be considered "Phase Two" in Kissinger's contribute more effectively to global defense if they were personal onslaught against the NATO alliance. In March redeployed as strategic reserves based in the U.S. and able 1984, in a piece written for Time magazine, the former U.S. to be moved to world trouble spots." Not only should the F­ Secretary of State demanded a phased withdrawal ofAmeri­ Ills now in Britain be redeployed to the United States, to can forces from Europe. Now, as then, strategists across avoid the political controversies that erupted when British Europe are , in private, evaluating his propos�s as tanta­ Prime Minister Thatcher agre�d to F- I lls stationed in Britain mount to a call for the dissolution of NATO, only now more for use in the Libya raid, but "similar principles could be blatantly. It comes at a dangerous conjuncture, in a policy­ applied to otherforces suitable for a strategic reserve, forces context definedby the Gramm-Rudman legislation's budget­ such as certainlong-range fighterplanes and air-transportable cutting in the United States, and by a Soviet-authored U.S. ground forces. The objective should be to distinguish clearly media campaign to play up European-American tensions aft­ between those American for¢es earmarked exclusively for er the U.S. bombardment of Libya. Europe and those available for other areas." The best thing that can be said about the Kissinger piece The second lying premise, immersed in a long-winded is that it provides full confirmation of the charge mad� by Kissingerian historiography over the history of NATO, is

24 International EIR May 23, 1986 that "the fear of Soviet invasion [of Europe] has dimin­ "Kissinger's NATO proposals, over t¥ne, have created many ished. . . . The practical consequence is that a major portion difficulties forus . " of America's armed forces is tied up where governments will In Britain, France, and Italy, strategic planners were · permit its use only against the least likely threat, an all-out seething. "Absolute nonsense!" is how one senior British Soviet attack on the central front." Instead, he argues, re­ civil servant described the Kissinger thesis. "What he 's say­ move an unspecified array of American "forces" from Eu­ ing amounts to a major element in decoupling. The fact that rope, and deploy them, free of Europeanpolitical pressure, somebody as eminent as Kissinger would say this, I findvery from within the United States, to fightneo-colonial brushfire surprising and very disturbing. . . . the single most impor­ wars in the Third World. tant factor in coupling is the conventional presence of Amer­ The folly of all this has not escapedEuropean strategists. icans on Europeansoil . Any significantmovement that would From the standpoint of "budget-cutting," the "strategic re­ undermine the components of rapid ·. flexible response, and serve" idea is ridiculous: As there do not exist adequate lower the threshold for intercontinental nuclear war, is a bad barracks and other facilities for such a redeployment in the thing. Militarily, what he's saying is no good. The political United States, it would cost more to do what Kissinger says, repercussions are no good. I don't accept the analysis, and than to keep the troops in Europe ! More fundamentally, any the remedy he proposes is a disaster. " literate and rational European strategist, knows that what A senior French source was bluqt: "Henry Kissinger is Kissingeris saying, undermines the very foundationsof NATO completely crazy. We don't like his proposals for NATO. itself; were his proposal to be implemented, NATO would His diagnosis of NATO is largely exaggerated, his solutions disintegrate faster than the IJ:actor corein Chernobyl. completely wrong, reflecting a fundamental lack of reality. We have no sympathy for what he'� saying. Over the past 'Kissinger is completely crazy' year, France has become staunchly Atlanticist, and French­ Within a week of the Kissinger article's first appearance, men hate anything which is said against NATO, especially he had become the subject of much bitter private criticism in against the American presencein Europe ." Europe , although, with one interesting partial exception, no An Italian NATO planner, durin, a May 12 discussion, official had yet summoned up the intestinal fortitude to take attacked Kissinger for "increasing re!lentments on both sides Kissinger on pUblicly. of the Atlantic." The partial exception was West German Defense Minis­ ter Manfred Womer, speaking before a May 14 conference Speaking only for himself! on security policy in Bonn, West Germany, hosted by the One element of the anxiety, is s�culation about the ex­ West German Christian Democratic Union at their Bonn tent to which Kissinger is reflectin� a wider view in the headquarters . Womer, who had reportedly met Kissinger United States, whether it be in the U . S. Congress, the Reagan approximately one week earlier during Kissinger's stopover administration, or in American "public opinion." The Neue in Bonn, began by criticizing the opposing Social Democratic Zurcher Zeitung of Switzerland, in a May 15 feature on the Party in the Federal Republic for wanting to "send the Amer­ Kissinger article writtenfrom Washi ngton, reported that the icans home," and, thereby, "doing the work of the Soviets, tendency in Congress and in the administration to consider surrendering us to their dictatorship." Then, departing from the Western Alliance a high priority, had "dissipated consid­ his text, and speaking in a somewhat lowered voice, the erably." It speculated on a nightmare coalition, of "neo­ defense minister said: "I am very concerned that there is a conservative" Kissingerians in the iepublican and Demo­ drifting apart occurring both in Europe and the U.S. People, cratic parties, allying with liberal Democrats opposed to all some of them prominent, are calling for the withdrawal of forms of U . S. military intervention, in which case "an unholy American troops, important people like Henry Kissinger. I alliance with considerable clout will have emerged on Capitol . know that the American administration does not share this Hill," united by common opposition to the American military view, but if we expect the Americans to stand by us, we have presence in Europe. to stand by them. " One West German source told EJR on May 15 that the CDU loyalists in the audience objected that Womer was evaluation in the Federal Republic is that "Kissinger is an­ beingtoo much of a milksop on the issue, and one challenged gling for a job in the next U.S. administration, which, we him to respond to "Henry Kissinger's message," by "cele­ understand, he believes will be DemCj)Cratic." Some political brating what the Americans are doing to defend us," partic­ experts wonder if he is trying to link up with the ambitions of ularly the actions by American pilots "who flew the Berlin Gary Hart, whose advisory circles are known to favor a U.S. blockadeof the Russians." withdrawal from Europe. At NATO headquarterson May 14, a spokesman told this In the meantime, rumors are spreading fast in West Ger­ correspondent, "We've read the Kissinger article, and are many, that some form of U. S. withdt;awal fromEurope is in offering no comment." Another source, however, comment­ the works. These rumors began in e�est, with a report in ed that the reaction was "unfavorable" to the pi�e, and that the April 21 Hamburg BUd, immediately following the mid-

EIR May 23, 1986 International 25 April trip to Washington of West German Foreign Minister Hans-Dietrich Genscher. The Hamburg tabloid reported that Genscher had picked up a strong mood in the United States favorable to pulling out of Europe .. Bonn sources inform EIR that Genscher is on an all-points decoupling campaign. "It won't go unnoticed that he abso­ lutely refused to criticize the Soviets at all over Chernobyl, OAS sees red at U. S. but will attack the United States on the slightest pretext. He is the chief of the decoupling lobby in Bonn," one source meddling ip Mexico commented March 13. On March the Sunday weekly Welt Am Sonntag, 12, by Val erie Rush reported that the West German Embassy in the United States had authored a memorandum, signed by Ambassador von Well, 'Xarningthat the combined pressures of budget -cutting The United States' allies i� the Western Hemisphere are and the fallout from the Libya affair, were creating significant outraged that Mexico has bec�me the latest target for the joint momentum for phasing out the U.S. presence in Europe. The "democratization" campaign iof Sen. Jesse Helms (R-N.C.) memorandum reported an item from the U.S. publication, andthe liberal State Departmlentestablishment . The view of Defense Daily, that the U.S. Third Annored Division would the Organization of Americ� States, according to sources be withdrawn from West Germany. quoted in the Mexico City da ly Excelsior on May 15, is that i . On May 16, the tabloid Bild Zeitung claimed to have Mexico has been set up, in her:· ngs staged by Helms on May obtained the von Well memorandum, and included a com­ 13, for the "Marcos treatmen ." ment from an unnamed Bonn official , warning that tenden­ The OAS sources mince no words: "It is totally unac­ cies toward decoupling in the United States were being taken ceptable that W ashington sho�ld arrogate to itself the inalien­ "very seriously," especially as the withdrawal of U.S. troops able right of every nation to �le itself. It appears that Wash­ would mean a "weakening of our defenses," and that "nuclear ington believes that all the wbrld is like the Philippines, but weapons would have to be used earlier" in case of war. Latin America, at least, is nqt and we are prepared to prove it." The Trilateral offensive In a packed hearing roo�on Capitol Hill on May 13, A major forum for the decouplers will be established witnesses at hearings called by Senator Helms alleged that when approximately 200 Trilateral Commission members "massive corruption" at the highest levels of the Mexican arrive in Madrid May 16, for the May 17-19 annual "inter­ government-including eved the family of President Miguel national plenary" of the Commission. The May 19 sessions de la Madrid-had led to thei downfall of democracy in that will be dominated by a report, "Towards Perspectives for country, and predicted more �nd more instability unless the East-West Relations," prepared by William Hyland, editor ruling PRI party yields power fO the drug-traffickingNational of the Council on Foreign Relations ' Foreign Affa irs journal Action Party (PAN). . and former Kissinger aide at the U.S. National Security The Mexican government responded to the Helms-State Council, and Karl .Kaiser, research director at the German Department assault with what has been described as "one of Society for Foreign Relations, the Bonn affiliateof the CPR. the bitterest statements" ever.: Charging violation of national Following this, Commission mentor Zbigniew Brzezin­ sovereignty and blatant intetf..entionism which threatens to ski, former national security adviser to Jimmy Carter, will "mutilate the climate of harm?ny and understanding sought" give a presentation on "The Political Objectives of the Tri­ by the two nations, a "stron�nd formal" protest was sent by lateral Commission." In a recent interview with the French the Mexican governmentto S cretary of State George Shultz. magazine, Politique Internationale, he recommended the The stateinent charged that e Helms hearings, "apart from unilateral withdrawal of U.S. troops from Europe. adulterating the truth and preS!entinga distorted view of Mex­ The meeting is receiving an incredible boost from the ican reality, are a cle� and u�acceptable violation of Mexi­ Spanish elite. Dinner receptions are to be held at the Royal co's sovereignty. The governJ!nent of Mexico does not accept Palace, hosted by the King and Queen of Spain, on Monday that U. S. officialstake it uponithemselves to make statements evening, May 19, and there will also be dinners hosted by on Mexico's internalaff airs, Js these affairs concernonly the Prime Minister Felipe Gonzalez, on Saturday, May 17, and Mexican people and no govbrnment has the right to pass a lunch hosted by opposition Alianza Popular leader Manuel judgement. ... Fraga on the same day . Remarkably, Gonzalez himself will The State Department an$wered Mexico's formal com­ leave, immediately thereafter on May 19, for a state visit to plaint by insisting that the he!lrings were "a candid, public, Moscow, accompanied by 29 Spanish government officials balanced review" and by oth4rwise refusing to comment on and businessmen. the contents of the Mexican protest.

26 International EIR May 23, 1986 The Helms-sponsored hearings on Mexico take place in brewing in that coontry. A denuncialn of the bearings w", the context of a drive by the State Department and friends to issued by the Mexican Congress and �igned by all congres­ . force developing-sector nations, one by one, to fork over sional representatives, except for thJ PAN whose spokes­ their wealth to the world financial elite. The State Depart­ man, Jesus Gonzalez Schmall, insisted. weakly, "This is not ment-inspired overthrow of Ferdinand Marcos was but the interventionism." first such destabilization. Jesse Helms was all too ready to Mexican Labor Confederation (ClM) leader Rafael Riva lend his good offices to an attempted repeat performance in Palacio declared, "The labor movement repudiates the meth­ the strategically critical nation of Panama. ods of espionage and interventionism e>fcertain sectors of the While that effort has not ended, patriotic forces inside United States, and supports the govetnment in its energetic Panama have stalled the operation by applying EIR ' s polem­ protest. "'Industrial leader Fernandez Barajas said, "Mexican ical method-in a way Mexico would do well to study. They industrialists insist before the entire community that we are printed, in the Panamanian newspapers, reams of documen­ Mexican patriots first, and businessm�n second, and that we tation on the Nazi past and drug-pushing present of the folks are ready to defend Mexico with everything at our disposal." Helms and the State Department were touting as the "demo­ The governorof every Mexican st.te expresse� his rejec­ cratic opposition." tion of the Helms slanders. Quert!taro1governorMariano Pa­ Helms's Panama hearings of March and April were the lacios Alcocer said that dignity coul4 not be exchanged for prelude to his Mexico "corruption" hearings on May 13. economic health; Tabasco's governorjGonzalezPedrero said Feigning concernfor the effects of "flight of capital, flightof that national sovereignty was up for ,neither discussion nor workers, and flight of drugs," the senator insisted, "When sale; Tlaxcala's governor Tulio Hern.ndez said that Mexico we see the flight ofdru gs, we know . . . the corruption which is "a neighbor, not a slave," to the Ur¥ted States, and so on . always accompanies this breakdown of the social order in the Worth underlining was the assertion by Mexican embassy producing countries . We know that corruptionseldom comes spokesman Leonardo French that the flelmshearings served in one kind, that disregard of the law in one area begets a as a boost to the drug mafia. "By �ublicly criticizing the general breakdown of freedom. . . . I have a feeHng that, at efforts of countries which share ideqtical objectives in the the root of the problems we have been outlining, is the failure area of combating narcotics, all it �oes is strengthen the of the democratic system in Mexico." position of the drug traffickers themselves ...." The semi- I Also addressing the May 13 hearings was U. S. Customs official Mexican daily El Nacional g�ve banner headliaes to Commissioner William von Raab, who testifiedthat the gov­ the story that "The United States proplOtes drug production ernorof the northwesternstate of Sonora, Felix Valdes, was with approximately $1 18 billion each �ear. This is the amount not only protecting the fugitive drug trafficker and murderer which its 25 million consumers spendr . . ." Mexico's state­ Felix Gallardo in his home, but that he owned four ranches run television news network included � 1 O-minute reportMay in Sonora state where opium and marijuana were cultivated. 14 on how there are more than 600,poO' hectares of illegal The U.S. consul in Sonora admitted to the Mexican press, drugs cultivated on U. S. territory. "My government has no information available to back up in any way the allegations" made against Valdes, and offered The drug-pushing PAN I an apology to the Sonora governor. Governor Valdes re­ Not openly mentioned, however is the fact that the big­ ' l sponded that he didn't own "a square kilometer of land in gest boost to the drug mafiaprovided ; by the Helms hearings Sonora, much less four ranches," and was considering filing was its virtual endorsement of the Nazi-communist PAN l a libel suit against von Raab for "political and personal dam­ party's drive for power. Top leaders of the PAN party have ages." been repeatedly charged with collabqration with the interna­ The May 13 hearings were but the open end of a two-day tional drug mafia.It is a well-documqnted fact that the funds "Mexico-bashing" festival. The previous day, CIA and other of PAN electoral campaigns are deriv�d from the illegal-drug officials of the U. S. intelligence community reportedly tes­ trade. Yet Helms said, "Is the PRI j*st like the Communist tifiedbehind closed doors on the "massive" and "irrefutable" Party that runs Russia? . . The PAN ,oes not have the slight­ evidence of electoral fraud allegedly committed by the PRJ est chance to take over the country b�cause the PRI will not party against the insurgent National Action party (PAN) dur­ allow it." : ing last year's elections in Sonora, Sinaloa, and Nuevo Le6n. Although criminal stupidity reg ing our allies contin- ardI The intelligence agents brought in their "experts" on Mexico ues to reign in Washington, there ar� some dissenters. John who, according to some sources, included members of the Gavin, outgoing U.S. ambassador to !Mexicowho reportedly PAN party and, according to Helms staffers, "did an excellent opposes the heavy-handed method �f the Helms hearings, job." was quoted by wire services labeli� the hearings "sancti­ The Mexican government's angry demand for a Reagan monious posturing" that does more �arm than good and in­ administration explanation of the Helms-sponsored slanders sisting that "corruptionexists . . . on �oth sides of the border, of Mexico was a diplomatic hint of the very large storm wherever the merchants of slow deadt do their business."

EIR May 23, 1986 International 27 A Front-Line Campaign

Patriots for GeITI1any launch · election drive in Lower Saxony

Just before the election offices closedon May 12 in the state low-interestcredits to the debt�strapped developing countries of Lower Saxony, a new political party was born in the as well as to hard-pressed farms and factories; a global debt Federal Republic of Germany. To the shock of the nation's adjustment; destruction of the International Monetary Fund predominantly liberal news media, the Patriots for Germany and the establishment of a new just economic order in the stepped forward to officially file 100 candidates forthe June world." 15 state legislative elections, with all the petitions and other legal requirements signed and sealed. That is one candidate The importance of Lower Saxony for each of the state's 100 election districts. The June 15 elections in Lower Saxony are importantfor The new party has vowed to rally the population of West a number of reasons. First, they will be widely interpreted as Germany to reject the pressures of both Moscow and the a preview of federal elections throughout West Germany next Western "decouplers," and to uphold the Western alliance. year. Current polls give Christian Democratic Chancellor At the same time, the Patriots will mobilize for urgent mea­ Helmut Kohl a very poor chance of remaining in office. He sures to restore the world economy. would probably be replaced by Johannes Rau of the SPD, We can be sure that these developments in Lower Saxony with thebacking of the Green Party . are being watched in Moscow with about as much anxiety as Already, this arrangement is being described as a "Wa­ the latest reports from the Chernobyl"disaster zone." termelon Coalition" -greeno� the outside, red on the inside. At the party's election congress in the state capital of If Kohl is replaced with such' a coalition, that government Hanover on May 4, Renate Muller, the top candidate on the would implement a promise the SPD-Green leaders have Patriots' slate, explained that the weakness of the ruling already made-to join the Soviet bloc in a "nuclear-free Christian Democratic Union (CDU) and the treachery of the zone," making Russia the dominant force in WesternEurope. opposition Social Democratic Party (SPD) have necessitated This plan has the approval 9ftraitors in the United States. the founding of the Patriots at this time. The CDU is under A number of U.S. State Department officials have privately constant blackmail pressure from the tiny Free Democratic confided that they have already "written Germany off," and Party (FDP) of "decoupler" Hans-DietrichGenscher, the for­ so-called American conservativesaround the Heritage Foun­ eign minister. The SPD, on the other hand, is obscenely dation, are pushing for a U.S.·troop withdrawal, to "punish courting the environmentalist-fascist Greens , in hopes ofre­ the ungrateful Europeans" by leaving them to Moscow's gaining the government and breaking off all collaboration mercy. This is a gameplan for the speedy collapse of the with the U.S. Strategic Defense Initiative-as Moscow has United States, which is too weak economically, militarily, ordered. Muller described the policies of the Patriots: No and culturally to face Russia without support from Europe. decoupling from the U.S.A., no neutralization of Germany, Lower Saxony is situated on West Germany's northern yes to NATO, extensive collaboration with the Strategic De­ plains, only a few kilometers from the Warsaw Pact tanks fense Initiative, and work on a European Defense Initiative. and missile-carriers. For Amencans, the Russians may seem She emphasized that the economic problems of Lower far away at times; but for the�e citizens, the concentration Saxony, a largely agrarian state that has been devastated by camp which is East Germany is all too real. the agricultural crisis, can only be solved on an international But because Chancellor Kohl and other pro-American basis. "The world economic crisis is our chief security prob­ West German leaders have embraced the "free market" stu­ lem," she said. "The budget cuts in the United States under pidities of the Reagan administration, the country is in the the Gramm-Rudman law are endangering NATO, and sooner throes of a devastating economic crisis. Lower Saxony is or later will lead to the withdrawal of American troops from predominantlyagricultural , and thousands of farmers-who Europe. And here, the economic crisis is hitting the 'forgot­ up to now have supportedthe rulingconservative coalition­ ten majority,' those who in Illinois nominated the two La­ are quitting in disgust as they see their government doing Rouche Democrats, Mark Fairchild and Janice Hart. The nothing to halt the wave of fannshutdo wns. solution to the crisis is simple and international: long-term, According to the present forecasts, the conservative CDU

28 International EIR May 23, 1986 Interview: Karlheinz ntrbfuss i

'The middle class is being wiped out'

GERMAN DEMOCRATIC Karlheinz Derbfu ss ran a supermarket in Melle before his REPUBLIC retirement. He was a member of the board of the Retail Traders' Association of Osnabruck-Emsland and is a mem­ ber of the Chamber of Industryand Cbmmerce of Os nabruck. He was a cofounder of Patriots fo r Germany, and is now a member of its state executive committee. Here are excerpts from an interview published in the weekly newspaper Neue Solidaritat.

Q: Mr. Derbfuss, you are a membet of the state executive comittee of the Patriots for Germany in Lower Saxony and a candidate in the 81st election district, in Melle. How did you FRANCE come to join the Patriots for Germany? Derbfuss: A couple of months ago, 1 met two of my current colleagues organizing in the street, apd discovered that their views correspondedto a large extent with my own. I set about to findout more about these ideas. After long consideration, SWITZERLAND AUSTRIA reading newspapers and books, espeCially those of Mrs. Hel­ ga Zepp-LaRouche, I came to the conclusion that the only state government of Ernst Albrecht will probably lose to a way to end the misery which we find in Germany and in the Watermelon Coalition. world, is for us to come forward puplicly as patriots. After As late as six months ago, there seemed no possibility of much discussion, we finally decided on the founding of a changing that outcome. However, in November 1985, a se­ party on March 23, 1986, since only a party can really take ries of advertisements appeared in West Germany's major partin political life and realize politi�al conceptions. national-circulation newspapers, signed by the Patriots for Germany, and calling for a new movement to save West Q: You are first of all opposed to the SPD [Social Demo­ Germany from being "decoupled" from the West. In what crats] and the Greens? some observers described as an "underground politicalearth­ Derbfuss: Yes, I am convinced that!both of these parties are quake," word of the new initiative spread rapidly. Members on Moscow's line. When Ithink, for example, about Gerhard of middle-size industry and middle-class entrepreneurs driv­ Schroder of the Lower Saxony SPD+-who wants to become o en into bankruptcy, conservative politicians disgusted with governorof the state, who had previ usly participated in the theirgovernm ent's capitulation to East bloc pressure on such riots of the political leftists in Berlin� and who, according to issues as participation in the Strategic Defense Initiative, what I have heard, worked in the office of lawyer Schily for outraged farmers, and Social Democrats disenfranchised by many years [Otto Schily, Green Party leader and lawyer for theirpro-Moscow party leadership responded enthusiastical­ terrorists-ed]-that's enough for me . And then when I find ly, flooding the Patriots' office with letters and telephone out about his numerous trips to the d.D.R. [East Germany], calls. particularlyhis meetings with Erich Honecker [East German The Soviet KGB responded with a barrage of threats and . party chief], then I really get the feeling that he is trying to intimidation. But the achievement of a full slate now makes sell us out to the East. the Patriots into a major party in the elections. According to German election law, the party will enter the state legislature Q: What about the CDU [Christian1Democratic Union]? if it wins at least 5% of the total vote in the state. But its Derbfuss: Oh, the CDU! When I look at the list of candi­ spokesmen say it aims at much more than that. dates that the CDU in Lower Saxony has put forward for the

EIR May 23, 1986 International 29 state legislature, then I get the feeling that everyone in the CDU who represents the ideas of Mr. TodenhOfer or Mr. Interview: Robert Graper Dregger [Jiirgen Todenhofer and Alfred Dregger are pro­ defense leaders of the CDU-ed.] has either decided not to runfor office at all, or is sticking to those posts which do not 'It was the CDU involve these ideas at all any more. that abandoned us' Q: Does this apply to the area of defense policy? Derbfuss: Yes. The CDU is departing more and more from Mr. Graper has been a CD U nkmber throughout his political its earlier strong tie to America and the Strategic Defense life ;for 18 years he was the CD U mayor of his hometown of Initiative program. Because, if we are not in the position, to Garstedt. He is deputychair11l(ln of the Evangelical Working counterpose something equivalent to the East in the defense Group of Lower Saxony. A c6-jounder of Patriots fo r Ger­ policy area, then we are quickly out of the window--':"'we've many, he is a member of its st�te executive committee and a surrendered to the Russians. The Soviets only accept: equal candidate fo r the third spot on its state-wide slate. strength, equal power. Q: Mr. Graper, for 40 years you have been a CDU member; Q: What do you find wrong with the CDU's economic pol­ you were mayor of your homerown of Garstedt; and now you icy? are running in the coming state elections in Lower Saxony Derbfuss: That it has so neglected the middle class. This is with the Patriots forGerma ny.! Why? my own experience-for over 40 years I ran a food store. I Graper: Why? That's an easy question to answer: It was not have seen that, during the recent years , nothing is being done I who left the CDU, but the COU which left me-that is, it any more for the middle class, which composes a third of the abandoned its own founding program. My views have not population, so that many of these people are being ruined. changed. I want our middle class to function properly again, Whole occupational groups are being virtually wipedout , for and with the CDU this is simply no longer possible. After example, the food handlers. In the last 20 years, 170,000 reading a book by Mrs. Zepp-LaRouche, it became clear to food shops have been closed-more than half of those pre­ me that the Patriots, as far as the middle class is concerned, viously existing .... have not only the right national concept, but also the right internationalone . Q: What are the principles of tax and credit policy, that you want to have the Lower Saxony legislature adopt? Q: So you say that the CDU has left the middle class in the Derbfuss: The basic principle is a "two-tiered �redit poli­ lurch? cy," with lower interest rates for productive investment, of Graper: Yes, we know from the federal statistical office, 1-2%, whereas speculators would have to pay higher interest that every year 14,000-16,000 middle class people go bank­ rates. This would mean that most money would return into rupt. This means, that every day, 50-60 businesses are forced . the economy itself, and all parts of the economy would ben­ to close their doors . efit. For years in the CDU I fought for the social market economy; I believed that the "change" [the CDU's campaign Q: The hot phase ofthe election campaign is now beginning. slogan during the Schmidt gO\lernment-ed.] would finally How do you see the chances of the Patriots to enter the do something for the middle class, but this was unfortunately legislature? not the case. All my petitions were in vain .... Derbfuss: I think that the chances are decidedly good. The time could not be more favorable. The experiences of my Q: Where do the Patriots for Germany stand on the SPD? work of the last weeks, in signing up members on the streets, Graper: I knew Mr. Schumacher [Kurt Schumacher, the talking with people, have convinced me that more and more staunch anti-communist postw� leader of the Social Demo­ people are saying: Things cannot go on in this way, there crats], and respected him a great deal. And I even had a bit must be a change, and thank God that finally there arepeople ofrespectfor Helmut Schmidt. " ..But Willy Brandt's SPD who are saying the truth ! has sunk so low, that you can't take them seriously at all. The And when in North Rhine-Westphalia and Schleswig­ SPD is drifting toward the East. Holstein, over 30% did not vote, and when the latest polls in We do not want to be a satellite of the East; we do not Lower Saxony indicate"that the number of non-voters will be want to be neutralized either; we must therefore take care to even higher, it tells me that our primary task is to talk to this keep the American Army here for our protection. And we hitherto silent, or forgotten part of our population, and say to should send a resolution to America saying that no troops them how we can find the way out of our misery. If we do should be pulled out. Our policy means: The Federal Repub­ that, I think that 5% will prove to be a trifle. lic is fully a part of the Westem alliance!

30 International EIR May 23, 1986 Colombian drug traffickers make a bid to control the next government by Val erieRush

With presidential elections coming up on May 25, the god­ the 1990 presidency, drug-legalization lobbyist Ernesto fathers of the Colombian drug trade have made an offer "too SamperPizano . La Republica titled its page-one expose "1.6- good to refuse" to the next government. While couched in pez, Michelsen, Samper: Colombian; Trilogy of 'Citizens ,,, careful, "patriotic" declarations, the mafia proposal is an Above Suspicion. unmistakable threat to the two contending presidential can­ The major Liberal Party mouthpiece, El Tiempo, was didates:Which of you will legalize thedrug trade, and which quick to point out that La Republica;s choice of coverage of you wants to die? was overt political opportunism: L6pez, Michelsen, and The mafia offer (full text below) formally consists of a Samper are all important figures-political and financial­ demand that Colombia's extradition treaty with the United in the top-down control of the Liberal Party. Not bothering States be overturned and the 20 fugitive narco-chiefs be al­ to deny the charge, La RepUblica's editors answered their lowed toreturn to Colombia-with guarantees. In exchange, critics by challenging them to a debate on the published the mobsters pledge to end their trade in illegal narcotics, and charges-withEIR ! bring home enough of their ill-gotten fortunes stashed abroad The Conservatives have their own rotten apples, of course, to pay the Colombian foreign debt and start up "legal busi­ as exemplified by the column of Bertha Ospina, widow of nesses" that will allegedly generate thousands of jobs . former President (1966-70) Manano Ospina Perez, in the Neither Alvaro G6mez Hurtado, candidate of the ruling May 11 edition of La Republica. Attacking Justice Minister Conservative Party, nor Virgilio Barco Vargas of the Liberal Parejo Gonzalez for his rejection of the mafia proposal, the Party, have publicly commented on the proposal. President crusty matriarch of the Ospina family writes: Belisario Betancur-asked to respond to the mafia offer­ "I think that everyone in this country knows that the most threw the ball into his potential successor's court with the reprehensibleact of which the drug traffickers are accused is reply, ''That's a proposalto be presented to Alvaro G6mez." the vile assassination of Dr. Rodrigo :Lara Bonilla. But the Justice Minister Enrique Parejo Gonzalez, who succeeded guerrillas who today have been given all sorts of guarantees the murdered anti-drug fighter Rodrigo Lara Bonilla, spoke have assassinated, not in a day but over months and years, for the Betancur governmentin publicly denouncing the ma­ thousands .... fiaproposal as "absurd" and "unnegotiable." "For these people there are houses, cars, scholarships, freedom, but for the drug traffickers there cannot even be 'Dope, InC.' charges surface conversation over proposals that would end that criminal And yet the question of legalizing thedrug trade in some activity based on the right to be judged in their own country form has become the issue of the day, and could define the and not by a strangecountry where they would be judged and outcome of the presidential elections. On May 9, the Con­ treated in the midst of prejudices against Colombians com­ servative Bogota daily La RepUblica devoted its front page parable to those suffered by the Jews under Hitler's Germany. to lengthy excerpts from the Spanish-language edition of the I thinkthat if in Colombia there be justice for guerrillas, then best-sellerDo pe, Inc., written by an EIR investigative team. there should also be for the drug traffickers. " The excerpts were taken from the Colombia chapter of the Of course, Bertha Ospina does not mention that two of book which focused on the mafia links of former President her grandchildren were recruited to the drug trade by Severo Alfonso L6pez Michelsen, his cousin, the fugitive drug­ Escobar, one of the signers of the mafia petition, and were banker, Jaime Michelsen Uribe, and their "joint project" for arrested last year in Florida on cocaine traffickingcharg es.

EIR May 23, 1986 International 31 Lopez Michelsen and his Liberal friends have not, of course, gone after their cohorts in the Conservative Party, Documentation but have instead tried to smear the anti-drug elements in both political parties. Thus, anti-drug fighter Jorge Carrillo, Be­ tancur's labor minister and a Liberal Partymember, has come under violent attack in the Lopez-dominated media, as has his economic adviser Maximiliano Londono, former vice­ president of the Colombian Anti-Drug Coalition (See EIR , The mafia's bid to May 2, 1986). Similarly targeted has been President Belisario Betancur. legalize �g money On April 30, the scandal sheet El Bogotano owned by Jaime Michelsen Uribe charged Betancur with violating Colombian Whatfo llows is the fu ll text, in EIR' s exclusive English trans­ exchange controls and illegal laundering of fortunes from lation, of the document pre�ented to the Colombian news abroad. The same charge was then televised nationally by media by the fu gitive "godfathers" of that country'sdrug kook presidential candidate Regina Once, a self-proclaimed trade, and published in EI Ti�mpo on May 9, 1986: witch. The most prominent anti-drug spokesman in Betancur's May 6, 1986 cabinet, Justice Minister Enrique Parejo Gonzalez, has been To: Colombian reporters and:communications media under the most intense pressure to resign. Since the M-1 9 We, assault on the Justice Palace in Bogota last November, ene­ Lukas Evangelista Gomez Van Grieken, Carlos G6mez mies of the Betancur administration have alternately blamed Gonzalez, Emiro de Jesus �j ia Romero, Mario Otoya Ro­ Betancur and Parejo for the narco-terrorist massacre of half bOn, Alberto Escobar, Jovanii de Jesus Cano, Armando Jar­ the Supreme Court and destruction of the nation's legal files. amillo Marulanda,Beatriz H�lena de Tamayo, MarioOchoa, The March escape of drug traffickerJose Ramon Matta Bal­ Julian Otoya Tob6n, Linda G6mez Otoya, Carmenza Val­ lesteros from a Colombian jail with the complicity of un­ enzuela Martinez, Gonzalo Rodriguez Gacha, Carlos En- known but powerful "citizens above suspicion" and the cor­ . rique Lehder Rivas, Marlene! Navarro, Pablo Escobar Gavi­ ruption of numerous prison officials, were also laid at Pare­ ria, Jorge Sauma Ramirez, Fabio Ochoa Vasquez, Carlos jo's doorstep, even though the minister had repeatedly de­ Ferreira Camargo, and Carlo$ Tulio G6mez Gutierrez, who nounced and sought remedy for the rampant corruptionof the act in our own name and are tc!Klaypursued by the DEA [U. S. prison and court system. Drug Enforcement Administration] , and who thanks to God The efforts of the mafia-linked Attorney General Carlos find ourselves free and therefore are presenting the current Jimenez Gomez to force Parejo's ouster have gone public. A communique, in solidarity With our comrades, friends and bitter exchange of accusations between the two, triggered by compatriots: Parejo's denunciation of the attorney general's office for HernanBotero Moreno, SllidAlberto PabOn J atter, Nayib sabotaging the war on drugs, led to Jimenez demanding a Ricardo Pab6n Jatter, Marcc>s Cadavid, Carlos Humberto presidential censure of the justice minister. Betancur thus far G6mez Zapata, Berta Yolanda Paez de Gonzalez, Severo has refused to yield to the attorney general's pressures, but Escobar Ortega, Jose Antonio Cabrera Sarmiento, Evidalina rumors of Parejo's resignation were so widespread May 12 Garz6n de Escobar, Jose Jatter Alvarez, Bernardo Pelaez that a presidential communique had to be issued to quash Roldan, Luis A. Garcia Uri�, Marlene Orejuela, Gilberto them. Rodriguez Orejuela, and Jorg¢ Luis Ochoa, who are current­ While the mafia seeks to buy a foothold in the next gov­ ly prisoners in different jail!> in the U.S. and Spain. All ernment, its media mouthpieces are busy creating the popular because of the poorly named r'Extradition Treaty," "Law 27 environment for some form of legalization of the dope trade. of 1 980," which only in a moment of servility, slavery, and TV journalist German Castro Caicedo of the LopezMichel­ insanity could have been signed by then President of the sen-owned station Caracol spent time in New York in April Republic, Julio Cesar Turbay Ayala, and then minister of with the U.S. dope lobby NORML (National Organization foreign relations, Diego Uribe Vargas. We declare our firm, for the Reform of Marijuana Laws), apparently comparing total and self-sacrificingp osition against said treaty, assert­ notes and draftingcampaign strategy. The firstre sult of that ing the following points: cooperation was a television show produced by Castro and 1) We don't understand how Colombia, being a sover­ broadcast nationally in Colombia which argued that since the eign, democratic, and inde�ndent nation, had to resort to United States was growing more marijuana than Colombia, foreign and alien laws to judte its children, since as can be the herbidide eradication programs "imposed" on Colombia clearly seen with the signing of this extradition treaty and the were unfair. The hidden argument was that Colombia's only handing over of nationals to 'the U. S. government, we are opportunity for a competitive edge on the U.S. dope market allowing Colombia national S(>vereignty to be violated; was legalization. 2) It is almost incredible to have to accept that with the

32 International EIR May 23, 1986 i I mere say-so of some people who have infiltrated our country 8.S we expected, the government's an�wer was a flatno to our (DEA agents), we are to be turned over to foreign judges, so proposals; that they can satisfy their thirst for vengeance on us Colom­ 8) In view of the fact that we achieved nothing with our bians; first offer, we decided to invite the attorney general of the 3) It is clearly demonstrated that that treaty is unconsti­ Republic, Dr. Carlos Jimenez G6mez, with the purpose of tutionaland in clear violation of human rights.In making this carrying out a new dialogue which' would permit a good reference, we base ourselves on the already tested and proven understanding with the Colombian gpvernment.That meet­ thesis that after five long years of study of the extradition ing was held in Panama City.The a«prney general accepted treaty on the part of the honorable Supreme Court of Justice, despite warning that at no time did hb attend as mediator or that body has been unable to openly rule on the constitution­ as attorney general, but only to hear us and, in case our ality or not of said treaty. proposal was viable, to transmit it to the President.Once we 4) Reviewing a little history and from memory, we can met with the attorney general, we made it clear to him that observe that in an act of patriotism and independence in the our principal concern was to collaborate in reestablishing name of our country, the President of the Republic, Belisario social peace and national tranquility, to which end we would Betancur Cuartas, and the then-justice minister, Rodrigo Lara formally, genuinely, and materially i surrender all elements Bonilla (R.I.P.), at the end of 1983 ruled unfavorably on the and raw materials used for producin� cocaine.At the same extradition request that the u. S.gov ernment had made against time, we would make ourselves available to justice in order Colombians Lukas G6mez and Emiro Mejia, at the same.time to clarifyour juridical situation.The attorneygeneral listened that the President made Colombia's position on extradition to us very attentively, but we never received a response. clear, and indicated that none of its nationals would be hand­ Today, nearly two years later, we still accept in good faith ed over in extradition.At that time, the Colombian people that a decision will be made on our pioposals; unified in support of their President; 9) It is impossible to accept the m).ereality of our country 5) We cannot explain the causes or reasons that led to since after seeing what is going on here, we confirm once President Betancur's change of mind regarding the extradi­ more our conviction that we are inhabitants of the land of the tion of nationals, and in a moment of anger to favorably sign sacred heart of Jesus. Glancing at oJr current situation, we the first extradition requests, except to adduce as the only find ourselves with the signing of the so-called peace treaty, cause the lamentable death of then Minister of Justice Dr. where there is neither treaty nor peac�, since the signers have RodrigoLara Bonilla, which also led the President to declare not re-joined the social life of the countryand continue killing that from that moment on the Colombian government de::' and robbing, protected by the amneso/laws; clared open and all-out war on the so-called drug traffickers; 10) It is clearly proventhat we the' so-called drug traffick­ 6) It is inconceivable and even infantile to think that at ers have nothing to do with the so-called narco-guerrillas, as that time we, the so-called drug traffickers, who were at the we are friends of true democracy, which is being trampled time the beneficiaries of the measure adopted by the govern­ on in our country.For all of the above reasons, we proceed ment in regard to non-extradition of nationals, could be so to request the following from the govbrnment: ignorant and naive as to hang ourselves by taking the life of a) The right to be judged in ttte Republic of Col­ Justice Minister Rodrigo Lara Bonilla (R.I.P.).Our position ombia, by Colombian judges, in ,Colombian jails. is so truthful that if at this moment we were given procedural b) The right to prove that non¢ of us, the so-called guarantees, we the so-called drug traffickers could clearly drug traffickers, had any connec�on to the death of demonstrate that neither Pablo Escobar Gaviria nor any of us the Justice Minister Rodrigo Lar. Bonilla (R.I.P.) had anything to do with that tragic event; c) That a national plebiscite � immediately held 7) At the end of 1984, a group of us headed by our for the purpose of carrying out a .total revision of the protector and spokesman Carlos Tulio Gomez Gutierrez, in so-called Extradition Treaty. a private meeting held in Mexico City, had the pleasure of d) That we be granted the rig�t to bring back into dialoguing with the ex-President of the Republic, Dr.Alfon­ the country our capital, which is !currently in foreign so LOpez Michelsen.In that meeting, we asked ex-President countries.In truth, these resource. could generate em­ LOpez to serve as our mediator with the President of the ployment by paying taxes and generating foreign ex­ Republic Belisario Betancur. To facilitate cordial dialogue change that could help to reliev� our weakened na­ between the conflicting parties, we offered to appear, as long tional economy. as we were given indispensable guarantees, before the Co­ e) To demonstrate that in reality we are neither lombian courts, to respond to the charges against us, and thus bandits nor criminals, as Justice;would have the re­ to clarify our image before the nation and public opinion.We signed and tolerant public opinion of this beautiful similarly offered in a very disinterested way and without country believe. expecting anything in return, to pay off the entirety of the Colombian foreign debt, which at that time amounted to the Thanking you once for the attention you give us, we not inconsiderable amount of approximately $11 billion, but, sign ourselves (signatures in first paragraph follow).

ElK May 23, 1986 International 33 protectionist responsesfrom me of its trading partners. " In Japan late April, Sen. Jay Rocketi ller (D-W.Va.), echoing the demands of the State Dep ent, recommended thatJapan become an "import-consumin. society" -a call to tum Japan into the same kind of industrial scrapheap as the United States. The Japanese people .hould spend more, save less, Summit may have and import more goods, he s �d. "The pressure, the protec­ tionist bills that have been pur�t [by the U.S.]," he said, in ruined Nakasone a kiss of death, "have gotten Fugh to Japan's Prime Min­ ister at least." by Linda de Hoyos The free fall of the dollar bver the last months, putting a plug on the flow of Japanese �xports, has brought the econ­ omy "to the point of no return;" in the words of one Japanese Japan is postponing its decision on participation in the U.S. observer, as manufacturing filrms and export companies go Strategic Defense Initiative, Foreign Minister Shintaro Abe belly-up in the face of decre�sing orders. The yen went as announced May 13. The discussions of leading cabinet mem­ high as 164 to the dollar, with Don Regan's Merrill Lynch bers and military leaders-to deliberate on the reports of citing 135 as the still higher ra� desired. Aside from thetrend Japan's third and largest delegation to the United States to for yen revaluation, the fluctu�tions alone have wreaked hav­ investigate the SOl program-failed to reach a finaldecision , oc on trading. although the delegation had returned with their thumbs up With Nakasone's failure t(> impress his colleagues at the for Japan's strategic commitment to the SOl. summit with the necessity tq stabilize currencies, Japan's The displacement ofthe SOl to the "back burner"in Japan banking and corporate leade� have reportedly withdrawn is a direct result of the Tokyo summit of the heads of state of their support for him. According to Kyodo news service, the DECD nations, May 4-6. At that summit, the Reagan corporate leaders had a "deqpeIied apprehension over the administration "sunk" the chances of Prime Minister Yasu­ future direction of the yen as :a result of the summit talks." hiro Nakasone to succeed in his bid for a third term, and Rectifying the yen's high exc�ange rate, said Yutaka Hirata, "sunk" with him the chances for an early decision on the SDI. president of Unitika, Ltd., "i� a life or death matter." Prime Just before the summit, in an interview with NHK television Minister Nakasone in the viefN of these leaders , must take May 2, Nakasone issued his own personal commitment to responsiblity for the summit'� failure. The corporate com­ the SOl, saying: "What is called SOl is ...a new weapons munity's view is expected to " kick off a general reaction" in system that opens the way to ending nuclear weapons. . . . the ruling Liberal Democratic Party against the prime min- Mr. Reagan is trying to create such a system. He is saying ister. I that when it becomes available, he will show it to the Soviet The summit, therefore, qas killed Nakasone's plan to Union and tell them to have the same thing. When both sides dissolve parliament and press �r general elections along with have it, they will eventually dismantle their nuclear weapons. the Upper House elections sc"eduled for this June. This was The SOl is thus dedicated to an ideal." Nakasone's only chanceto remain in power for a thirdterm­ Although the betrayal of Prime Minister Nakasone, at the by outflanking the LDP leade� opposed to his tenure with a hands of the Reagan administration and with the acquiesence clear victory in general electiqns. Despite the problems with of President Ronald Reagan, is far less dramatic than that the economy, Nakasone has: enjoyed increasing personal administration's betrayal of Philippines President Ferdinand popularity, the result of his insistence that now, 40 years after Marcos, the premises of the policy were the same: forego all the defeat in World War II, JaPan begin to take its place as a strategic considerations to enforce the Trilateral Commission leader in world politics, in, keeping with its economic economic policy, on behalfof the New York and allied banks, achievements. no matter the consequences to the allied nation. The crucial turningpoint npwfor Japan will be the Upper In the case of Japan, the State Department-as if acting House elections, slated for June. If the LDP wins a strong on orders from Moscow, which has howled with rage at the showing in those elections, a�ording to a well-placed Japa­ prospects that Japan might become involved in the SOl-has nese observer, then Nakasone will stay in office until LDP been waging a protectionist trade war against its export in­ party elections in late October, (the LDP president automati­ dustries and against its currency, the yen. cally becomes the party's candidate for prime minister). In The tenor of U. S. economic policy toward Japan was put that case, a decision on the SOl will be likely before Naka­ forward aptly enough by Trade Representative Clayton Yeut­ sone steps down next winter. If, however, the LDP registers ter before the summit: "Japan is playing a very dangerous a poorshowing , thenNakaso� will be forced to leave office game in the conduct of international law . A nation cannot be immediately, and a caretaker government will take over. In all exports and no imports . Something has to change, and if that case, the decision for Japan's participation in the SOl it isn't done voluntarily with Japan, it will inevitably provoke "might become extremelydifflculL "

34 International EIR May 23, 1986 Laborites' 'Fortress Australia' plan means clear sailing for the Soviets by Allen Douglas and Col. Molloy Vaughn, u.s. ArmyRet.

In late May, Australian Defense Minister Kim Beazley will release the highly classified "Dibb Report," on Australia's militarydoctrine. One year in the making, the report proposes The ANZAC Corridor radical shifts in defense policies and force structures. From the previous policy of forward defense and close collabora­ tion with its allies, in particular withthe United States, in the The ANZAC Corridor of the Pentagon enshrines the ANZUS Pact, Australia's Socialist Internationalgovernment long tradition of cooperation among the U. S. , Austra­ proposes to retrench toward "self-reliance" in a 1,100 kilo­ lian, and New Zealand forces, which Dibb seeks to meter zone around Australia's coast. The proposed changes, end. together with the rej ection of the U. S. offer to participate in The first U.S. and ANZAC force contacts began the Strategic Defense Initiative (SOl), signal the complete during the U.S. fleet visit "down under" of 1907-08. disintegration of the ANZUS alliance, among Australia, New The display, "Europe 1917-18," points out how, in Zealand, and the United States. summer 1918, regiments of the untrained U.S. 80th Commissioned by the 38-year-old former Rhodes scholar Division were trained by, and went under their firstfire Beazley from Australian National University'S Paul Dibb, with, the New Zealand Division. The 131st and 132nd the reportbetrays a quality of strategic thinking, that exceeds Regiment of the U.S. 33rd Division were "trained by the follies of the French Maginot Line. It not only contracts and received their baptismal fire"with the Fourth Aus­ Australia's own defense capabilities, but jeopardizes key tralian Division. U.S. bases as well. In the crucial battle of Sundu Straits in February 1942, as the Japanese rolled down through the Pacific 'The to-year warning time' Islands toward Australia, the USS Houston and the All competent strategic thinking in the world today rec­ Australian ship, HMAS Perth. fought side by side until ognizes a reality which Dibb ignores: the awesome Soviet both ships went down, guns still firing, with both cap­ military buildup and drive for world domination, as docu­ tains and 800 men, having made a major contribution mented in EIR 's Special Report, Global Showdown: The to slowing the Japanese advance. Russian Imperial War Plan fo r 1988. As Dibb stated to The Gen . Douglas MacArthur's field commander, Lt. Bulletin magazine of Australia, on April 8 , "One of the things Gen. Harmon, had "only the greatest praise" for the I thought very important in intelligence was the concept of 3rd New Zealand Division comll).anded by Maj. Gen. warning time-that we would have 10 years' warning of a Barrowclough, for their campaigns of Vella Vanda, major assault on Australia because it would take any country the Treasury Islands, the bitter fighting at Bougain­ other than the superpowers at least that long to prepare the ville, and elsewhere. As a top U.S. officer, also with sortof forces necessary. " MacArthur in the Pacific, recently put it, "There is no Even apart from this elimination of the Soviet threat with way an American soldier will ever forget the valor of one pen stroke , Dibb's idea of a lO-year warning time is these people. Their units were decorated almost every ludicrous. As one leading U.S. strategic thinkercommented , day." after noting the extensive Soviet military buildup in the Pa­ The same qualities were exhibited by the ANZAC cific and the existence of Vietnam's I-million-man, highly troops during the fighting alongside American units in equipped, battle-tested army, "What universe are these guys Korea and Vietnam. [Beazley, Dibb] living in? What this report really says is

EIR May 23, 1986 International 35 'We're not going to have the capability to bother you, so we hope you won't bother us. '" Even Beazley admitted, during a trip to Indonesia in March, "Vietnam poses a major strategic The Pacificl theatre problem for Australia." From the wishful premise of "10 years' warning time," Dibb proceeds to recommend dismantling Australia's armed U.S.S.A. e Omsk forces. First, the "self-reliance" doctrine reorients Austral­ (S8-2 ) ia's army, navy, and air force ·away from integrated deploy­ O e Novosibirsk ments with their opposite numbers in the services of the (SSj.20) Western alliance, toward "working with each other." This change in C3 (command, communication, and control) struc­ ture , together with changes in equipment, will make unified deployment with the Western alliance very difficult in case of emergency, a de facto decision to scrap the ANZUS alli­ ance . In addition, the Army and Navy are substantially down­ graded: Army: It is to be largely stripped of its tanks, artillery, and APCs (armored personnel carriers). Some existing Leop­ ard tanks and APCs will be mothballed, and no new ones will be ordered , in favor of lighter, smaller, helicopter-borne units. This sort of unit is for counterinsurgency, with no capability for sustained battles against armored and mecha­ nized divisions. Navy: The six River frigates the Navy has will be re­ placed by smaller, slower Corvettes. The Navy will be a smaller, slower force operating only within the 1,170 km interceptor range of air cover of the Air Force's F/A- lSs. This will result in essentially a coast guard function-to catch smugglers, infiltrators , etc. Air Force: While the Air Force is assigned the major role of protecting Australia from invasion, and so is slightly up­ gra4!lf, even it will have only a fraction of the necessary capability. The 5S older Mirage III OIDs will be replaced by 71 F/A- lSs. But since half of the F/A- lSs will be assigned to maritime strike functions, there will be only some 30-35 FI A- ISs (given maintenance time) functioning as interceptors, for all of Australia. Dibb's "Fortress Australia" will also lack a balanced air defense, like the new Patriot going into all the Nato countries and Japan: a modem ground-based SAM mis­ sile system, able to knock down enemy bombers, cruise missiles, and with a limited ABM capability.

A real defense for Australia: the SDI . Air defense is essential, for reasons of strategic reality, which Dibb and his patron, Beazley, studiously avoid: Aus­ tralia is not exempt from Soviet strategy and planning for global showdown with the West. By virtue of its physical location, the country is a prime target for Soviet strikes. A Soviet commander, looking at the map, as Soviet command­ ers do, sees that Australia represents a base of control over Australian Defense Minist� Kim Beazley's "10 year warning time' both the naval choke-points of the Straits of Malacca and . shows the range of Soviet SS-2Q missiles when firedfrom their present I mobile SS-20s can-be quickly moved ship or air to Cam nc adjacent straits - the transit route from the Pacificto the Indian by Ranh Bay Australia (#2). Single warheatfSS-20s can reach afurther3,3 00 /em, l Ocean - as well as the alternative route south of Australia. target. Since the SS-20s can be launchedfrom non-prepared sites (literal The Soviet officeralso observes, that the United States main­ hit the ground in Vietnam. As w�ll, Soviet Baclifireand Bear H bombers, , tains three important C3I bases at NW Cape, Pine Gap, and on fa miliarization flights into �D Nang.

36 International Nurrungar. And, Australia is a possible resort for U.S. bomb­ ers needing to land and submarines :to refuel, a capability the U.S.S.R. would want to knock out in a conflict. The Soviets have not only the motive, but the capability, to "take out" Australia, using either submarine-fired missiles, or, as the accompanying map shows, the S5-20 IRBM. This missile can be rapidly transported from the Soviet Far East to Viet­ nam, and from there can hit any Australian target (and most '. of New Zealand), in its one-warhead modification. But Beazley and Dibb, as they prepare to dismantle the .. .. .: ... ,.- .. capability to deal with conventional threats, rule out the one defense made-to-order for the actual threats to the conti­ nent-the SDI. Beazley crowed, ilJ. early April during his #1 Indonesia visit, "We do not support SDI both in terms of its (S&-20) workability and in terms of the strategic balance ....We will pursue our views with the Americangovernment and our Vladivostok views are all discouraging. "

The New Yalta and the to-year warning #3 Aftera first round peddling his c�dboard "Fortress Aus­ tralia" to Australia's military traditionalists, Dibb stated, "I �� ..(J\ FI.C.

International 37 Garcia introduces economic development to Contadora process by Gretchen Small

With a proposal that Ibero-American countries assume the ic reconstructionof the nations involved in problems of war." task of funding economic development in war-tom countries Peru will take the firststep to putting the plan into action, such as Nicaragua and EI Salvador, Peruvian President Alan he promised. "I believe that my country, despite its poverty, Garcia has added a crucial economic feature to the hectic could contribute to an initial fund, making available a long­ diplomacy leading into the June 6 signing of the Contadora term credit line, at low interest �tes, so that Nicaragua could Peace Accord by the nations of Central America. obtain from Peru the resources which it needs for its growth Garcia has led the fight, at the governmental level, for or economic survival." Every member of the eight-nation the formation of an independentIbero-American powerbloc Contadora and Support Group-which includes Mexico, which could wield sufficient power to break international Colombia, Panama, Venezuelllr Peru, Argentina, Uruguay, usury's grip on world credit flows. By connecting that effort and Brazil-is "in the positioJ!l to open credit lines which with the principle of sovereignty defended in the Contadora could mean a fund of capital gqods and manufactured prod­ pact, Garcia has opened a new flank in the fight to bring ucts," Garcia told Mexico City's Novedades. stability to Ibero-America, through its economic integration. The next day, Garcia announced that Peru will extend a Economic aid to CentralAmerica, as Garcia is proposing, $10 million credit line for Nicaragua, saying its $7 billion is the right idea at the right time. With Soviet leader Mikhail debt to Peru would be refinanceki, payable in 20 years, at 3% Gorbachov escalating the Soviet push for confrontation with interest instead of 9%. Garcia '1ll1ed those terms an example the West, a CentralAmerican crisis which diverts U.S. troops to "usurious banks of the world, banks which charge 9% or from the front lines in Europe and the Pacific, takes on added even 10% interest." urgency in Soviet calculations. Economic reconstruction, After meeting with SalvadQran President Duarte, Garcia such as that proposedby Garcia, is the single quickest mea­ extended his proposal to El Salvador. "The fund is not limited sure to seal the region against Soviet destabilization. toNic aragua. . . . It can also go to El Salvador, for example, to complement and aid the development of its economy in The Garcia initiative agriculture and production," he told the press. "In addition Garcia detailed his Central American fund proposal to to opening new markets, this is the firststep towards integra­ Mexican journalists, while attending theinauguration of Cos­ tion of the Latin American economy. In this way, we can ta Rican President Oscar Arias May 8. The interviews kicked become independent of other economic systems, foreign to off a new round of regional diplomacy by Garcia, with Sal­ our reality. " vadoran President Jose Napolean Duarte invited to visit Peru President Duarte echoed Garcia's arguments. "Conta­ from May 9- 12, and Garcia scheduled to visit Panama on dora is vital to the search for peace" in Central America, May 28, and Mexico sometime thereafter. Duarte stated May 11, "but to reach it, we must strengthen "If some want to help with arms and guns, I am fully thepolitical will of the parties iQ.volved," and combine it with convinced that Latin America could, concretely and conclu­ economic aid to develop Centl-aI America. The two Presi­ sively, help with tools of development, food," Garcia told dents supported the formation · of a "Latin American Com­ Mexico's Excelsior newspaper. Garcia criticized the U.S. munity of Nations," in a corrulnunique issued at the end of insistence on sending $100 million to arm the Nicaraguan theirtal ks. Contras. "The region could help the economic reconstruction of Nicaragua concretely. Not with guns or other kinds of Contras prop up Sandinistas arms of war as the U.S. does, but with tractors, trucks, At the last Contadora meeqng May 2-4, Ibero-American fertilizer, with tools for work." nations decided to force the issue on signing of the treaty, As Ibero-America was able to establish Contadora and its setting June 6 as the date by which remaining details of the SupportGroup to present a proposal and a formulafor Central Contadora Peace Treaty are to be resolved, and the Treaty American peace, Garcia argued, "We believe that Latin sign�. Contadora's principle$ are simple: Domestic con­ America can also aid development, growth, and the econom- flicts in Central America must be separated from the inter-

38 International ElK May 23, 1986 national strategic crisis, by securing agreements which pro­ What most scared them, was : thatNicaragua might not tect national sovereignty, forbid aid by any nation for "irreg­ continue to play the game. The �ankruptcy of U.S. policy ular forces" operating against another nation, and ensure that was displayed most crudely in a �olumn in the Washington national borders are inviolable. Post on May 13, written by a team generally close to the The Treaty freezes the crisis; measures to returnpeace to American intelligence community I Rowland Evans and Rob­ the area-economic aid and allied military operations against ert Novak. Warning that the Sandinistas might actually sign drug-traffic-then must follow. the Contadora Accord, Evans and Novak complained that Locked within its borders, with lucrative drug-and-arms State Department officials had stated they would respect the routes sealed off, the Sandinista fanatics will be unable to Accord-including its provisions against support for "irreg­ wave the excuse of a "foreign" threat to silence the hatred of ular forces." If Nicaragua signs, Reagan will "have to scram­ the Nicaraguan population against them. With an integrated ble to find some credible way out� of that commitment, the Thero-America, Nicaraguan nationalists have an alternative two wrote. to choosing between Soviet and U.S. rule. "Thus is the Reagan Doctrine reduced to hope," Evans But neither the Reagan administration nor Soviet-client and Novak concluded their artic�, "a hope that Ortega's state Nicaragua, has shown any interest in respecting sover­ revolutionary stubbornness" will lead him to refuse to sign eignty in the region, nor supporting Contadora. Under the the accord. terms of the "New Yalta" agreement which the Soviets and The Sandinistas seem quite pr�pared to oblige "the Rea­ the one-worlders within the West are negotiating, Central gan Doctrine." Nicaraguan dictator Daniel Ortega continues America is a useful pawn. The Soviets can well "allow" the to insist that Nicaragua will sign! no agreement, until the United States to send troops to "fightcommunism" in Central United States stops aid for the Cont-as. White House spokes­ America; that way, the United States loses its Thero-Ameri­ man Larry Speakes announced May 14 that the signing of the can allies, while Soviet forces dominate Asia, Europe, and Contadora Accord will not be sufficientfor the U.S. to stop the Pacific. For six years, such advocates ofthe "decoupling" aid to the Contras. Thus does U.S. and Nicaraguan policy ' of the Western Alliance as Jeane Kirkpatrick, have argued serve Soviet global aims. that the United States will sooner or later have to withdraw Meanwhile, U.S. negotiations 'with the Soviet Union on its troops from Europe, to "fight" Nicaragua. "regional matters" continue unintetrupted. On May 20, As­ Former U.N. Ambassador Kirkpatrick played a key role sistant Secretary of State Elliot Abrams flewover to Moscow in developing the strategy of financingthe Contras, a rag-tag for the latest round of "discussions t group of squabbling mercenaries financed by the regional drug-trade, who have neither the political, nor military, might Nations, not pawns to overthrow the Sandinistas. Current U.S. efforts to "clean The combination of U.S. sabotage of the Contadora ef­ up their image ," by handing direct control over Contra fi­ fort, and U.S. refusal to aid its American allies in defeating nancing and campaigns to the United States, as Abrams' the two, principal causes of instability in Ibero-America­ favorite Contra leader, former United Brands lawyer Arturo murderous austerity ordered by the International Monetary Cruz insists, only worsens the stink of a return to Teddy Fund, and the international drug ttade-has created a dra­ Roosevelt-style "gunboat diplomacy." In those days, U.S. matic crisis of confidence between the United States and officers created, and ran, such armies in the region as So­ Thero-America. U.S. "scrambling" for a credible way to vi­ moza's "National" Guard. olate the June 6 deadline, is rapidl� escalating the crisis. In the past year, U.S. policy toward the entirety of Thero­ In a guest column in the Washington Post May 12, Ni­ America has been reduced to backing the Nicaraguan Con­ caraguan Cardinal Miguel Obando'y Bravo, who heads the tras , with efforts to overthrow allied governments which persecuted Nicaraguan Catholic Church, urged that a differ­ oppose that suicidal strategy, as officialsin Panama and Mex­ ent strategy be adopted. "It is urgent and essential that the ico can testify. Until now, U.S. pressure upon the small Nicaraguan people, free offoreigninterference or ideologies, Central American countries, including outright economic find a way out of the situation of conflictthat our country is blackmail, has successfully stalled the implementation ofthe experiencing," the Cardinal wrote. I Peace Accord, giving Soviet-allied Nicaragua a free hand to The Sandinistas deny "both the idea that an East-West deal roughly with its Ibero-American neighbors. conflict has made of our country a disposable card, a pawn But with new Presidents assuming office in Honduras, in the game between the superpowers, and the reality of a Costa Rica, and Guatemala in 1986, and the expansion of civil war," he argued, but the Churth insists there must be a Ibero-American involvement in Contadora through the Con­ path towards national reconciliation. He quoted from the tadora Support Group, Contadora' s insistence that the seem­ Bishops' pastoral letter of April 22. 1984: "We feel that any ingly no-win conflictin the region can end, found new recep­ form of assistance, regardless of t1!Ie source, which causes tivity in the region. The possibility that a regional accord the destruction, suffering and death bf our families, or which could finally be reached, sent the "decouplers" in Washing­ sows hatred and discord among the Nicaraguan people is ton scrambling. reprehensible. "

EIR May 23, 1986 International 39 1974 he traveled from Lebanon '0 Athens, where he estab­ Investigative Leads lished a bookstore from which �int he had been shadowed by Israeli intelligence services since 1975. It was the Japa­ nese Red Army which in the early and mid- 1970s conducted several of the most infamous terrCj)rist incidents including the Lod Airport massacre of 1972. One of its leaders, Fusako Shigenobu, is currently living in Lebanon's Bekaa Valley, LaRouche slanderer trainingIslamic terrorists. Other �rnnants of the organization are said to be engaging in simil/V activities in Teheran and arrested in Holland North Korea. Security experts believe thatthe involvement of Kiku­ by DeanAndromidas mura in a terror plot could signal a re-emergence of the Japanese Red Army on the internationalterrori st scene. This is in fact supportedby De Knipsel'(crantitself, in that the April The Dutch Secret Service has arrestedand charged with mas­ 30 issue reprints a Japanese Red Army communique to AS­ terminding a terrorist plot the editor-in-chief of De Knipselk­ ALA, the Armenian terrorist organization, on the occasion rant, the Dutch journal that has slandered EIR founder and of ASALA'S conference held iIli Athens on April 30, com­ presidential candidate Lyndon LaRouche. The editor, Paul memorating the 71th anniversary of the massacre of Arme­ Moussault, was arrested on May 4 for his involvement with nians by Turkish troops. Significtantly, the communique at­ Japanese terrorist U. Kikumura, who was arrested on April tacks Japanese Prime Minister Yasuhiro Nakasone for his 28 at Amsterdam's Schiphol airport while in possession of support of the Strategic Defens� Initiative, charging Naka­ one kilo of TNT and six electronic detonaters. sone with trying to "increase its aggressive activities against De Knipselkrant, a Groningen-based weekly, was iden­ the Asiatic peoples." tified by EIR ' s German language investigative journal, Sp u­ Moussault's attorney, Pieter Bakkershut, a lawyer who ren und Motive, as being directly linked to the three most specializes in defending terrorists and narcotics smugglers active and dangerous European terrorist movements, the West and who has been heavily involved in support operations for German Red Army Faction, the French Direct Action, and the West German Red Army fa�tion, issued a press release the Belgian Communist Combatant Cells. De Knipselkrant, claiming the police had committedirregularit ies. Bakkershut according to the West German State Attorney's office, func­ admitted that his client's passpqrt indicated he had traveled tions as the news and information service for the international to Belgrade, Yugoslavia, on April 17 and 18, which would terrorist movement. De Knipselkrant reprinted a libelous ar­ have enabled him to meet Kikurnura who was also in Bel­ ticle appearing in the April 7 issue of Newsweek. The slander grade during the same period. Police also found in Mous­ appeared in the Dutch journal the same week as the April 6 sault's home electronicsparts believed to be part of a bomb. firebombing of EIR ' s Paris officeby the Direct Action-linked Moussault and his associates:at Knipselkrant are not new­ "Black War" group. Black War also took responsibility for comers to terrorism. They are said be to active in the so­ the April 29 bombing of the offices of Laissez-Ies Vivre, the called Kraakers , a movement that seeks to illegally occupy leading French anti-abortion organization, which has coop­ abandoned houses in the major cities of the Netherlands, erated for many years with the Club of Life, headed by particularly Amsterdam. The �aakers were the model for Lyndon LaRouche's wife, Mrs. Helga Zepp-LaRouche. Se­ similar movements in West Genpany, particularlyWest Ber­ curity expertspoint to the reprinting of the article as thesignal lin, and France. These "house occupier movements" served to the international terrorist movement to "get LaRouche." as spawning grounds for the terrorist Revolutionary Cells and Direct Action. Sp uren und Motive in its March 1986 issue Terror alert in Europe reportedthat repr esentatives of De Knipselkrant attended the The arrest of both individuals comes in the midst of the Anti-Imperialist and Anti-Capitalist Resistance in Western heightened international terroralert throughout Europe. The Europe Conference, a gathering of the internationalterrori sts arrest of the Japanese terrorist U. Kikumura was the result of and their supportersheld Jan. 30to Feb. 1, 1986 in Frankfurt, increased security measures at Amsterdam's Schiphol Air­ West Germany. They distributeda publication there made up port implemented 10 days earlier. According to Dutch press of German translations of all the communiques of the Bel­ reports, Kikumura was a member of the Kuro Heru, or Black gium Communist Combatant Cells (CCCs). It was published Helmets, organization that had cooperatedwith the Japanese in cooperation with the Belgian anarchist weekly, Ligne Red Army in a 1971 bombing of the Tokyo Police headquar­ Rouge, whose chief editor, PascalVandegeerde , now resides ters. Kikumura is said to have been trained in bombproduc­ in a Belgian maximum security prisons, accused of being one tion at the time in a locationnortheast of Tokyo. InSeptember of the top leaders of the CCCs.

40 International EIR May 23, 1986 I plosive.' ...Both sides restate4 the principles of the Tri- partite Soviet-Cuban-Angolan consultations as occurred in Moscow during January of this year." This refers to the upgraded military assistance pact worked out in the January meetings in Moscow of the Sov,iet, Cuban, and Angolan Gorbachov prepares defense ministers. After the meetlngs, a Soviet general and counterinsurgency specialist named Petrov, was sent to An­ South Africa crisis gola to lay the groundwork for an all-out offensive against UNITA. , by Konstantin George The joint communique also made explicit that Moscow is preparing an escalation in SWAPO guerrilla attacks in Namibia and African National C()ngress terrorism in South While the eyes of the world are fixed on the Chernobyl dis­ Africa: "The Pretoria racists are illegally occupying Nami­ aster, Soviet leader Mikhail Gorbachov is methodically lay­ bia ....The United States is encoUragingan undeclaredwar ing the groundwork for future Soviet coDfrontationistmoves against Angola and Mozambique. i •..The Soviet Union and in various strategically vital theaters. For over two weeks, Angola call upon all governments: and forces to mobilize aid the Western media were bombarded with dozens of articles for the peoples of Angola, Namibiia, and South Africa." and commentaries speculating on the "silence" of Gorba­ chov. Until his May 14 twenty-five-minute televised address Raising the heat on Norway on the Chernobyl disaster, Gorbachov was indeed "silent"­ A historical "first" of a diffqrent sort-with ominous but only concerningthe nuclear power plant disaster. implications for NATO's northellli flank-was evident from Otherwise, Gorbachov not only was in high profile inthe afront-page announcement in the Soviet military newspaper, Soviet media, but also had announced major initiatives in Krasnaya Zvezda (Red Star) of May 9. Announced was the Soviet power projection in the international arena, focusing promotion of Col .-Gen. Boris Vtsilyevich Snetkov to the on southern Africa. Two of his dramatic moves include an rank of army general. Snetkov is the commander of the Len­ announcement he plans to visit Angola, and a WarsawPact ingrad Military District, which eJQtends from south of Len­ summit which he will lead in the Hungarian capital of Bu­ ingrad, through Karelia opposite Finland, to the Kola Pen­ dapest , June 10 and 11. insula and Soviet territory bordering on Norway. In time of From May 6 through May 10, a large Angolan delegation war, Snetkov would be the commander of the Soviet forces led by Angolan President, Eduardo Dos Santos, visited the earmarked for the invasion and .seifure of northern Norway. Soviet Union. Dos Santos held at least two lengthy meetings The promotion provides an irrefutable signal of a major with Gorbachov, besides talks with Foreign Minister Eduard buildup among the Soviet forces �signed to the Leningrad Shevardnadze; the new head of the Soviet CentralCommittee Military District. Most Soviet Mjlitary Districts are com­ International Department, Anatoli Dobrynin; and Defense manded by colonel generals. Th()se commanded by army Minister Sergei Sokolov. generals are Category I priority districts, with large forces, On May 11, Radio Moscow announced that Gorbachov and crucial invasion tasks , such as: The "Group of Soviet had "accepted an invitation to visit Angola" fromDos Santos. Forces in Germany," as the Russian forces in East Germany In March, while visiting Moscow, the leader of Mozam­ are called, who are the spearhead invasion forces deployed bique, Samora Machel, had also extended an invitation to against West Germany; the Far East Military District, facing Gorbachov to visit Mozambique; he accepted. Japan and Manchuria;·the Belorussi� Military District, which In short, later this year or in 1987, for the first time in contains the bulk of the second eche on invasion troops against �. history, a general secretary of the Soviet Union will stage a WesternEuro pe. I grand tour of the "Front Line States" of southernAfr ica. Both Snetkov's promotion came two weeks after the mid-April Gorbachov's grand tour initiative and disturbing phrases from large-scale Soviet maneuvers 13 �lometers (8 miles) from the Soviet-Angolan joint communique broadcast by the So­ the Norwegian border-maneuve� which rehearsed the war­ viet media on May 11, portend an upcoming Soviet-backed time seizure of northernNorway by!the Red Armyon the first offensive by the Cubans and Angolans against Jonas Savim­ day of war. Snetkov was identified in the March 28 EIR as bi's pro-Western UNITA. This would be designed to force a an officermarked forpromot ion, following his appointment military counter-offensive by South Africa to bail out UNI­ as a candidate Central Committee member at the 27th Party TA , and thus set the stage for a Soviet move against South Congress. The promotion of Snetkov is yet another dramatic Africa, which could escalate into a superpower showdown. signal from Moscow that an offensive, beginning with the The joint communique declared: "Both sides analyzed murder of Swedish Premier Olof PaIme, has been geared up the situation in the south of Africa, characterizing it as 'ex- against the entire northern flank.

EIR May 23, 1986 International 41 SoutheastAsia by Sophie Tanapura

On the brink in Thailand Prem may decide to set up a "national Hopesfor general elections are dim as it becomes clear that to salvation government" with an ap­ govern another year, Prem might pull a "coup" on himself. pointed national assembly. Amid the coup rumors , it is plausible that such a phase two could be implemented and Only two weeks after the dissolu­ sparked in Thailand soon after Prime even publicly accepted as a "legiti­ tion of parliament, coup rumors are Minister Prem denied an extension of mate" effortbYi Prem to stabilize a vol­ rampant as never before in Bangkok. Arthit's tenure in the armed forces, atile political situation. Most sources reportthat frictionis thereby setting thestage for Chaovalit Any person who has been in power mounting between Supreme Com­ to take over as Supreme Commander. for a certain period can become too mander and Commander-in-Chief of This crisis withint he military overlaps accustomed to that position to leave the Army Gen. ArthitKamlang-ek and the country's economic crisis; annual without wishi�g to linger on a little Prime Minister Gen. Prem Tinsulan­ debt service is now inching towards longer. Actually, it is of lesser import onda. No sooner had General Arthit 30% of export earnings or South whether Prem! politically survives or issued a six-point guideline for mili­ American levels. Prem's inability to not. The fact is that there is interna­ tary neutrality in the general elections cope with the economy has earnedhim tional interest tn maintaining the Prem scheduled for July 27, than some 70 not only the enmity of many in the government----not because of Prem­ combat unit commanders led by spe­ military, but also of those politicians but because this is likely to ensure the cial warfare commander Lt.-Gen. with power bases in the farm sector, continuation ofthe status quo of pro­ Sunthorn Khongsompong called on which has been hit by falling rice International Monetary Fund eco­ General Prem on May 13 unexpect­ prices. nomic policies: of debt repayment, free edly, in what was interpretedby many Hopes for general elections, ac­ trade, and other economic measures as a show of supportfor the caretaker cording to certain observers, are to loot the alr�ady bankrupt economy government. dwindling as it is becomes increasing­ of Thailand. To support this "demo­ The gestureof the special warfare ly clear that to govern another year, cratic process�f stability" is also pres­ forces was seen as defianceof General Prem might have to launch phase two ent U.S. State Departmentpolicy. Arthit's orders . Given Lt.-Gen. Sun­ of his political survival plan, phase If Prem subceeds and stays on for thorn's long friendship with Army one beingthe dissolution of theparlia­ one more year or so before scheduled Chief of Staff Gen. Chaovalit ment. A top cabinet official candidly general elections next year, then the Yongchaiyuth, both being graduates commented privately: "What elec­ questions tobe: asked are: 1) DoesPrem of Chullachomklao Royal Academy tions? There won't be any elections. " realize that his eventual momentary class one, it is suspected that General If one wereto lend credence to the political successwould be severely hit Chaovalit, a close aide to General rumors, General Arthit and his men by the looming world economic Prem, was, in fact, behind the show could be orchestrating a coup tomor­ depression? 2) Does Prem realize that of force. row . However, funnily enough, all further kowtowing to the International Two days after the show of sup­ coup rumors can be traced back to Monetary Fund and the World Bank port for Chaovalit, Third Army Re­ Prem himself, be it a military, media, will compromise not only his own gion Deputy Commander Lt.-Gen. or embassy channel of information. A government bpt will eventually bring Chaichana Thareechat led another scapegoat and a pretexthad tobe fo und down the vital institutions that hold group of army combat unit command­ and "a coup by Arthit" was conveni­ the country together? 3) Does Prem ers to "boost Prem's morale." Mean­ ent. realize that, in the meantime, Moscow while, General Chaovalit canceled his Calculated guesses of political in­ is playing a carrot-and-stickgame with birthdayparty for fear thatsuch a gath­ siders are that it would be in the inter­ Thailand by offering to buy Thai rice, ering of top military officers would est of Prem to make a political tapioca, and textiles at a giveaway aggravate already rising tensions. preemptive move, which could be a price, while at the same time building However, a group of senior officers coup against himself. With so much up amphibious landing capabilities in May 15 visited General Chaovalit to political fluctuation, with existing Kompong Som, a major port in Kam­ celebrate anyway. parties disintegrating and new ones puchea, four to five hours by car to The constitutional crisis was being formed, it is conceivable that Bangkok?

42 International EIR May 23, 1986 Report from Madrid by Leonardo SeIVadio

Libyan terror opens election season to take Spain o�t of NATO. It will be hard to stop 'the drug trafficand terrorism without The parties Of the anti-NATO co­ defeating a certain Libya-linked financial nexus . alition have noW created an electoral pact for the politicalelections next June 22. The bloc w�ll include the Spanish Communist Party, which the ultra-pro­ Russian elements around Gen. En­ . rique Lister joined in late April; the A powerful 20-kilo bomb, placed etc., will bearthe consequences of their PASOC; the CQrnmunist Party of the in a car parked on Principe de Vergara stand. This morning we took an ac­ Peoples of Spain; the Progressive Fed­ street in downtown Madrid, went off tion. We are watching various Amer­ eration, and otHers. The Progressive as a bus carrying police of the Civil icans who hide in the center of Ma­ Federation is �e equivalent of the Guard passedby on Friday morning, drid. They will suffer the same con­ GreenParty in West Germany. April 25. On board were nine Civil sequences." The executors of the ter­ The tight lioles between these par­ Guards, who had been picked up at ror attack may be ETA members, but ties and the Libypns are underlined by the V.S. and Italian embassies after the actions of ETA are run from out­ the fact that wri�r Gala, who headed their night patrol . Five died at once, side Spain, by the strategic command the anti-NATO toalition in the refer­ and three were hospitalized in critical allegedly hiding in France, a member endum, is presiClent of the . Hispano­ condition. As in the Dec. 20, 1973, of ETA arrested late in April con­ Arab Friendshi� Association, where assassination of Adm. Carrero Blan­ fessed. Libyan money pUtys an importantrole . co, the bomb was triggered with a re­ On April 27, Ilturbe Abasolo Libya's investm�nts in Spain are mas­ mote-control mechanism. "Txomin," described as ETA's top sive. Seventy pe«:ent ofthe Banco At­ The newspapers reported that afew leader, was arrested in Hendaye, on lantico, one of the biggest in · Spain, days before the massacre, the police the French side of the Basque region. and once of the big Rumasa holding secret service had reported that the Amazingly, the Spanish government company, was !sold cheap by the Basque separatist gang ETA was plan­ has not demanded Abasolo's extradi­ Spanish governhtent to the Arab ning a terrorist hit in that area of Ma­ tion, even though ETA had claimed Banking Corpor�tion, while 5% went drid against military targets. Hence, responsibilityfor murderingfive Civil to the Banco Alrabe Espafiol, con­ accepted wisdom here is that the Guards . trolled by the Ubyan-Arab Foreign bombing was a purely internal affair, The day of the attack, the foreign Bank. On the � of Banco Atlan­ long in the planning, and probably ministry had announced the decision tico and the Liby+ ArabForeign Bank linked to the upcoming election-as to expel 11 Libyans: 1 diplomat, 2 sit Abdullah Saudi, Qaddafi's re­ per ETA's tradition of making its elec­ embassy employees, 3 students, and nowned financialfactotum, and Salem toral statements with bombs. But the 5 professors. Foreign Minister Bar­ Zenaty, director (jfAresbank in Spain. fact that the Civil Guard bus took the rionuevo declared that there is proof Aresbank helps fu.ndGala 's Hispano­ same route every day at the same hour, of the connections between Spanish Arabic group. : raises questions on the credibility of terrorists and Libya. Among those ex­ In 1982, RUJnasa was declared the alleged warning. pelled, the "diplomat," Ramadam bankrupt by Fina4tce Minister Boyer, In reality, there is a Libyan-sup­ Mohamed Ruheim, had been impli­ a member of the! Socialist Party and . ported terror wave throughout Europe cated in attempts to disrupt an EIR ­ the Trilateral Coqunission, and; with against American targets, and those sponsored public conference in Ma­ a swift and veryl unusual operation, Civil Guards were coming from duty drid, together with elements of the ul­ nationalized andj re-sold in a few at the V. S. embassy. Credit for the tra-left-wing party PASOC, a party months to otherprf vate interests. Some bomb was claimed by an anonymous which sources describe as Libyan­ say that the sale bf Banco Atlantico caller to the daily ABC, the night of funded. It is likely that the PASOC is and Galerias �iadas, two of Ru­ the attack. A male voice with Arab not the only "leftist" party financedby masa's many sub�idiaries, to Libyan accent said: "All means, of commu­ Libya, which Seems to have had a role and drug-related interests, has some­ nication as well as of other kinds, in favoring the whole coalition, which thing to do with �e financial opera­ which support the assassin campaign at the time of the referendum on tions that are behi,d the ruling Social­ of Reagan in Central America, Libya, Spain's participation in NATO, fought ist Party of Premi�r Felipe Gonzalez.

EIR May 23, 1986 International 43- From New Delhi by Susan Maitra

A blow struck fo r democracy The daughter of Bangladesh's The Bangladesh parliamentary elections are a step to rebuilding 1971 liberation hero and first Presi­ the country's political process. dent Sheikh Mujibur Rhaman, Hasina took over the party her father had founded after his murder in a 1975 coup. The party has come to be asso­ ciated with a "pro-India" and "pro­ Soviet" stance. Hasina's 1986 decision to aban­ T he final results of the first parlia­ League's "People's Commission for don the boycptt and participate in the mentary election in seven years will Free Elections" have been used to give elections ledl to the break-up of the not be known until at least May 19, an aura of the "Philippines syndrome" opposition coalition with the BNP-Ied when the polling is completed in 36 to the election. But by the typically group as welJ as the eventual split-up constituencies where "irregularities" chaotic, rough-and-tumble standards of her own IS-party alliance. The BNP prevented completion of the vote on of Third World electoral politics-and combine re-,igned with various left­ election day, May 7. But one thing is politics in Bangladesh in particular­ ist and other Iparties and the powerful certain: Politics is alive and well in the election does not appear to have Dhaka University radical student this tiny, densely populated nation been out of bounds. community against the Awami ruled by martial law under "dictator" It is not unlikely, in fact, that the League. Has,na brookedcharges of a Lt.-Gen. H. M. Ershad since 1982. most mischief was actually done by "secret deal" with PresidentErshad and Nearly 1 ,500candidates contested the BNP-Ied boycotters. The BNP had a " sell-out" ! of the anti-martial law for 300 parliamentary seats. About the most to lose from successful elec­ campaign. 1 ,100candidates represented some 28 tions, no matter the outcome. Lacking "We have accepted the election as out of Bangladesh's 120-odd political the political organization and depth to a challenge tp add a new dimension to parties(92 parties chose to boycott the mount an election campaign, the BNP the anti-matfial movement," Hasina elections), and about 400 indepen­ is, as Awami League leader Hasina countered the charges. "In fact, we are dents ran. The percentage turnout of Wajed has pointed out, beholdento a going to take part in the polls not for Bangladesh's 47.6 million voters is new militarycoup to bring it to power. power," she, said, explaining that the not known, but the aggressive cam­ Founded by the late Gen. Ziaur elections would be a referendum to paign against the elections led by the Rahman when he was President of end martial law and establish a repre­ opposition Bangladesh National Par­ Bangladesh (1975-81), the BNP is sentative government. ty (BNP) included violence and hoo­ backed by a section of the Army. The Interestingly, reports hereare that liganism and may have blunted partic­ party and its seven-member alliance, the tiny but influential Communist ipation. including assorted Maoist sects, are Partyof Baqgladesh, a member of the Of the 264 seats counted, the pro­ led by Khaleda Zia, Rahman's wife. Awami League combine, was one of Ershad government Jatiya Party front Khaleda Zia, who peppers her speech­ thekey voices in persuadingHasina to was credited with 132, the Awami es with references to the threat of an take up the poll challenge. The oppo­ League-led opposition front with 90, "Indo-Soviet axis," operates from sition alliance had been insisting on the Jamaat-i-Islami and Muslim within the Army cantonment, where five demanps, including repeal of League with 10 and 3 seats respective­ she resides. martial lawl and establishment of a ly. Independents won the balance of The elections were an important neutral, caretakergovernment, as pre­ 27 seats. This has left Ershad's party step from martial law back to democ­ conditions fo r elections. 19 seats short of an absolute majority, racy in Bangladesh. The credit goes President Ershad steadfastly re­ but some of the re-polled seats, to­ equally to General Ershad, who has fused the l�tter demand, but aban­ gether with some of the independents, been tryingfor three years in the face doned his insistence on a presidential are expected to give his party a work­ of cynicism and political irresponsi­ probe preceding the parliamentary ing government. bility to make this step, and to Awami elections. He also agreed to lift large Vote-fraud allegations against the League leader Sheikh Hasina Wajed, chunks of martial-law authority to fa­ Jatiya Party by a British parliamentary who had the courage and politicalma­ cilitate vigorousand full electoral pol­ team invited to observe by the A wami turityto take up the challenge. iticking.

44 International EIR May 23, 1986 Report from Bonn by RainerApel

The meltdown of Kohl's popularity age of agricultural production by The revived anti-nuclear campaign caught the Bonn government granting bonuses for "reduced acreage off guard. in production." This is a Gennan ver­ sion of the USDA's "payment in kind" program. The hand of Stoltenberg and his pro-austerity faction inside the Christian Democratic leadership was becoming visible. TheGennan Social Democrats have the anti-nuclear scare campaign cost "This means that the CDU leaders decided to revive the donnant anti­ the Gennan farmers an estimated total decided to keep their eyes closed on nuclear movement as a tool to win the of between 700 and 1,000 million reality," a spokesman for the Gennan 1987 elections. All stops of demagogy deutschemarks. These are losses in Farmers Associationtold EIR on May against nuclear power are being pulled sales; not counted are the springtime 14, expressing that the farmers fe lt out, to terrorize the West Gennan investments farmers have made in the "tricked by the Ouistian Democrats ." population with invented news about "vegetable belts" which can largely be Pointing to the upcoming, crucial June post-Chernobyl radiation. A specific considered to be lost now. Many 15 state elections in Lower Saxony, target of this scare campaign is, how­ fanners won't be able topay theirdebt, the same spokesman added: "It may ever, the farm and food sector in the or their debt service. well tum out on June 15 that the voter country, which happens to be a sizea­ Preliminary reports from the will wake up these. politicians to real- ble traditional constituency of the 83,000 food stores in West Gennany ity." Christian Democrats of Chancellor show a loss of about the same dimen­ A similar statement was given by Helmut Kohl . sion, and this in a situation of gener­ an official of the. Gennan Food Store The scare campaign caught the ally escalating bankruptcy figures in Owners Association. This means that Kohl government off guard. For two that sector. Like the farmers , the food the calculations of the Social Demo­ weeks after the Chernobyl accident store owners have largely been voters c.rats . and of the Green movement became known, the government of for the Christian Democrats of Chan­ worked out well . so far: The anti-nu­ Chancellor Kohl remained inactive. cellor Kohl. They witnessed, how­ clear campaign would create pressure This left the field to the demagogues ever, that the Bonn economic policy on Kohl and his PartYfrom the consti­ of the Green Party, the Social Demo­ is not runby Kohl, but by his minister tuencies among fJUlllers and food sto­ crats and the media, who put out the of finance, Gerhard Stoltenberg, also re owners, and a failureof Kohl to do line that all fresh food had been poi­ knownas the "austerity pope of Bonn. " something for th�m would lead to po­ soned by the radioactive fall-out from Stoltenberg declared he had no litical disappointment and an escalat­ Chernobyl. The result was a dramatic money for the farmers, nor for thefood ed drain of the vote for the Christian drop in food sales for farmers , and in stores, and that he would not "violate Democrats. The Social Democrats the food stores. The losses were re­ principles of budgetary policy" be­ know they can't win .the farm vote, ported to be around 25% or even 30% cause of Kohl's fears that votes in the but they count on the erosion of the of the average income from sales of farm and food sectors might be lost. Christian Democ]!ats' constituency. fresh food, and in several regions, Rumors in Bonn have it that Stolten­ Since Chancellor Kohl and his losses of even up to 50% were wit­ berg refusedto help Kohl out, because partydon 't challenge the Social Dem­ nessed. Lacking authoritative infor­ he hopes to capitalize on the chancel­ ocrats, they feel safe and hope to ruin mation from Bonn whether there was lor's problems and become the next the Christian Democrats irreparably. a fall-out effect or not, consumers chancellor candidate of the Christian Thus, theresult ofthe black propagan­ tended not take any risks, and not to Democrats himself. da and scare campaign, which was buy freshfood , therefore. Thus, the farmers and food store launched from Moscow after the Especially the "vegetable belts" in owners were rudely repUdiated by the Chernobyl accident and transferred the regions along the rivers Rhine and Christian Democratic leadership. To into West Gennanythrough the Greens Main, and themilk farming regions of make the case worse, the CDU leaders and the Social Democrats, has been a South Gennany, were hit hard by the passed a program "for the farmers" on total "melt-down";of Kohl's authority scare campaign. The first 12 days of May 13 which encourages the shrink- and popularity .

EIR May 23, 1986 International 45 I

Northem Flank by Goran Haglund j

The Palme murder and the KGB Bjorck, annSweden lice officials �ccuse Holmer of direct­ probing the Palme murder, with Boris Pankin,'and TASS Director Ser­ ing the work like a dictator, that he is charges of gross incompetence against gei Losev, two top KGB disinforma­ paralyzing in!itiatives . . . and that he Stockholm Police Chief Hans Hol­ tion specialists, took part in Carls­ is more of a 'iability than an asset to mer. This coincides with attacks by son's Moscow talks. the investiga n," Expressen wrote on the government on its own security A central issue of the rift is Hol­ May 9. "I c not cooperate with an police, SAPO, for leaking the expul­ mer's insistence on cultivating some amateur. Tht re is no longer any rea­ sion of fiveCzech spies. tiny bit of suspicion against Viktor son for me to1talk to the Police Chief," A severe rift hasemerged between Gunnarsson, the original suspect, who one SAPO otficial stated. Holmer, who heads the Palme murder was released on March 19. Holmer SAPO rake over governmentmed­ investigation, and Stockholm Chief has had Gunnarsson cooperate in in­ dling was fueled as Foreign Minister Prosecutor K. G. Svensson, the pros­ numerable-and increasingly mean­ Sten Andersson publicly rebuked the ecutor in charge of the case, who chal­ ingless-encounters with alleged wit­ security polite for leaking the story of lenges the extraordinary powers nesses, to establish whether Gunnars­ five Czech $pies, expelled on April usurped by Holmer. According to re­ son was on the scene of the crime. 30, and braaenly denied their spying liable sources, Holmer, whose career In early March, a KGB-tainted for the Soviet KGB-ignoring how has not suffered from his intimacy with circle of journalists was tipped off by the spies from Czechoslovakia, a lan­ the ruling Social Democrats, is at­ Swedish police sources to exploit dlocked cou*try, targeted the Swedish tempting to wield such extraordinary Gunnarsson's arrest for a series of wild Navy's new! anti-submarine torpedo, powers against the European Labor libels against the European Labor Par­ Swed\sh port entrances, and locations Party in Sweden, the most vocal critic ty (ELP), based on reports that Gun­ along the S1vedish coast suitable for of the regime now headed by Palme narsson, carrying all the characteris­ amphibious landing parties. successor Ingvar Carlsson. tics of an agent provocateur, had brief­ Some sduces say the decision to The Carlsson regime, closely ly surfaced in the periphery of the ELP bust the Cz�ch spies originated out­ watching Holmer's work through two in 1984. The libels were halted upon side Swede�, with SAPO coopera­ governmentrepr esentatives in the 12- Gunnarsson's release, after Svensson tion, to counteract KGB disinforma­ man body directing the inquiry, has had determined that evidence was tion around the Palme case. Inadvert­ intervened to back Holmer. Learning lacking even to keep him in custody. ently implying such a connection, the of the Holmer-Svensson rift, Justice On April 28, no fewer than 22 new insider colu;nn of the Social-Demo­ Minister Sten Wickbom had his un­ encounters of Gunnarsson with "wit­ cratic Aftonbladet on May 10 raved dersecretarymake an urgent phone call nesses" began, after reluctant approv­ against the eonspiratorial politicizing April 26 to the home of SvenssQn's al by Svensson-with no results. Two of SAPO behind the Czech expUlsion: superior, National Chief Prosecutor days later, Svensson's superior Sjob­ "Maybe time has come for a SAPO­ Magnus Sjoberg, insisting that Svens­ erg, after government intervention, SAPO, a security police to check the son be restrained. overruled Svensson, approving an­ security police? ... Maybe in this This followed by one week Carls­ other 28 encounters. This blatant in­ context, there is a retirement post for son's return from Moscow, when a terference provoked an uproar. The Holmer, affurhe has finally failed to new tum in the investigation was an­ vice chairman of the parliament's solve the bloodiest SAPO blunder nounced, toward looking for a crazy, Constitutional Committee, Anders ever."

46 International EIR May 23, 1986 Vatican by Augusttnus 1 "

A not so 'holy' foreign policy saw convention :for having drawn out What hath been wrought by the Secretariat o/ State o/ the Holy new ideas on peace, seeking what un­ See ? ifies men of diverse opinions , and mentioned that jt had received an ex­ 'plicit message of support from the Pope, via the Setretariat of State. The Polish governmenthad at one blow promoted Archbishop Silvestri­ ni to the rank df Secretary of State. Back in Rome, it was pouring denials: T he hyperactive Vatican "foreign "I am pleased," Silvestrini writes, The message of greetings had not been minister," Mons. Achille Silvestrini, "to transmit to you, with the Pope's undersigned by the Pope , who had not , afterhis Mideast adventures, has won authorization, expressions of grati­ even been informed . Practically new friends among the shy and diffi­ tude for the contents formulated in your speaking, it was la forgery. cult Arabs . Why, even the turbulent letter." The Pope, the archbishop not­ Bygones were soon bygones, as Druze leader Jumblatt, no sooner had ed, looks with special care upon all far as Monsignor Silvestrini's opera­ he arrived in Rome, did not hesitate to noble efforts for justice and peace in tions went. It Was not the first time rush to the monsignor's office to have the world. that the shrewd and prudent officers of his wounds licked, after Prime Min­ May this congress, continued Sil­ Vatican diplomacy let something get vestrini, lead to effective results which out of hand, above all in the recent ister Bettino Craxi and Foreign Min­ ' ister Giulio Andreotti refused to meet will reinforce new relations based on period. with him. Of course, the gnostic lead­ true human solidarity, and may it lead The reason fpr the various diplo­ er Jumblatt, not satisfied despite the to a fruitful dialogue. The letter closes matic fa uxpas dm be imputed to the notoriously affable Vatican diploma­ by sending best wishes and expres­ close ties between the Secretariat of cy, went to seek further consolation in sions of deep respect for the important State's foreign policy and that of the the arms of the wife of the existential­ convention. U.S. State Department, which is car­ ist writer, Alberto Moravia. Warsaw political authorities took rying out a New Yalta project for a Moving from the Arab world to the message of Monsignor Silvestrini, separate accord with Moscow, heed­ the East bloc , the dynamic Monsignor in the Pope's name, as manna from less of nationalities and creeds . Silvestrini did not miss the opportu­ heaven, since more than 200 Polish Nor is it acci�ental that the Italian Catholic nity offered by a convention of intel­ scientists had sent a protest foreign ministry I went a bit too far in lectuals meeting in Warsaw to talk note to the convention, denouncing it encouraging a pc$sible officialvisit by about peace. When old Prof. Bogdan as a government propaganda maneu­ General Jaruzelsld, the Polish strong­ Suchodolski, ex-Catholic , ex-atheist, ver, with the clear intent of using the man, to Italy, which would imply an now communist, sent a letter to the popular topic of peace to hide the in­ "obligatory" visi to the Pope . Like­ Pope , as organizer of the convention, justices and systematic denial of hu­ wise, the Vatica. Secretariat of State to inform him about the initiative, the man rights perpetrated in Poland. is angling for a n¢w papal visit to Po­ industrious archbishop took pen and But, for the Polish government, land-although ;the Polish govern­ paper in hand and dashed off a letter only the message from Romeexisted . ment had laid down many roadblocks of warm greetings to the conventi­ On Jan. 21, Polish radio broadcast the to the places the I!'ope wants to visit­ oneers. following note, commenting on the with the aim of feeding the false image In the letter, Monsignor Silvestri­ convention's work: "We have suc­ of a Polish government as an outpost ni thanked, in the Pope's name, Pro­ ceeded in broadening the platform of of Moscow's "peace proposals. " fe ssor Suchodolski, the organizer of dialogue among men in the most im­ Prisoners of their own game, the the convention of intellectuals in de- portant affairs of the globe; it is sig­ heads of Vatican Idiplomacy don't re­ , fense of a peaceful future of the world, nificantthat the scientists congress in alize the strategi� significance of the and offered words of gratitude and en­ Warsaw received greetings fromGor­ U.S. intervention in the Mediterra­ couragement from John Paul II to him bachov and from John Paul II." nean, and the damage to the image of and the spokesmen of the world of The Polish government's spokes­ a peaceloving �ussia done by the science, art,and culture. man on the same day praised the War- Chernobyl disaster.

EIR May 23, 1986 International 47 International Intelligence

setback and most of his activities have been of Congress in rejecting an arms · sale may LaRouche interview by neutralized. Rouleau himself is said to be have created the misconception that the U.S. Saudis called 'significant' hopeful of a new appointment. commitment to freedom ofnavigation in the Gulf and Saudi self-defense has diminished. Any such view would be gravely mistaken. The interview with EIR founder and Dem­ Mideast terrorist linked We strongly support Saudi Arabian self-de­ ocratic presidential candidate Lyndon La­ to French Socialists fense." Rouche that appeared in the overseas Saudi Sen. Alan Cranston (D-Calif.), who has newspaperAs Sharq al Awsat has been as­ Naji AIlouche, bettern known as Middle East been a leader in the effort to block the sale sessed as "very significant" by Israeli terrorchief "Abu Abrahim," hasbeen closely of arms to tileSaudis, called the White House sources. associated with the French Socialist Party statement ·�silly." It was pointed out by The Arabic-language daily newspaper, for the past five years, according to Middle Speakes, h9wever, that these were the first based in London, quoted LaRouche in sup­ East intelligence sources. The Damascus­ Iranian att4cks on · Saudi ships since July portof IsraeliPrime MinisterShimon Peres's based Allouche-Ibrahim is the leader of the 1984, when Saudi fighter jets downed an proposal for a "new Marshall Plan" for the "May- IS" terrorist organization, to which Iranian F-4 Phantom Jet that had been at­ Middle East. Peres's proposal envisages a Tunisian terrorist Habib Maamar, arrested tacking a Saudi ship. $25 billion fund for co-development of Arab in the first week of May in Nancy, France, A third attack by Iran on a Saudi ship not and Israel nations as an economic founda­ belonged. mentioned by Speakes, came on April S. tion for peace in the region. Maamar has been charged with terrorist The newspaper is published by the Saudi acts as well as murder covering operations Research Marketing Corporation which on Abu Ibrahim's behalfin the last two years . Wa rn II/ terrorist controls most of the Kingdom's press. It Allouche-Ibrahim has for years been a frequently carries news items and comment activation in France leading figure in the Athens-based Union of which could not be printed within the King­ Palestinian Writers and Journalists, and is dom itself. More than 200 underground terrorists are known to have been regularly received in No Saudi Arabian press had previously about to activated in France, terroristHa ­ his "academic capacity" by the international he reported on Peres's proposal. bib Maantar has reportedly confessed to departmentof the French Socialist Party . French police. A former member of al-Fatah, AI­ This confirmed earlier information re­ louche-Ibrahim broke with PLO leader Yas­ ceived by Most of these would be like Future 0/ a French ser Arafat in 1978 to join Abu Nidal in EIR . Maamar himself-underground terrorists Baghdad, Iraq; they then separated, but both ambassador in doubt deployed for one operation at a time, but moved to Damascus, Syria as the base for otherwise,engaged in no political activities their terrorist operations. The KGB has run Heated discussions aresaid to betaking pla�e whatsoever in France. such terrorists through Syrian intelligence between the offices of the President and Maamar, arrested in Nancy, France de­ since 1967, when Yuri Andropov became Prime Minister in France concerningPar is's serted the' Tunisian army in late 1981 and KGB chief. ambassador to Tunisia, Eric Rouleau. went to Libya. He was then sent to South Following an EIR expose which was re­ Lebanon and to Damascus to join Abu ibra­ printed in Tunisian and French media, ac­ Saudi tankers hit him's "May 15" organization, which sent cusing Rouleau, a former founder· of the him back to France . Egyptian Communist Party, with plotting in Persian Gulf Since late 1982, Maamar was quietly the overthrow of the Tunisian government, based in Nancy, with no employment or res­ Premier Jacques Chirac took the decision to U. S. officials have expressed alarm over a idence permit. He received $3,000 a month withdraw Rouleau as ambassador. Accord­ pattern of neutral ships being fired on by from Abu Ibrahim. During that period, he ing to the V.S.D. weekly and Magazine Iranian naval vessels in the Persian Gulf. traveled tp the Middle East five times to Hebdo, however, Mitterrand personally in­ "Within the last eight days, two Saudi bring back explosives which were used in tervened to keep Rouleau in his position. tankers have been struck by Iranian aircraft four different bombings in Paris and Lon­ However, according to Le Figaro, Chirac in what appears to be an intensification of don. has taken the final decision to purge Rou­ strikes on neutral ships operating peacefully The �mbs were pre-timedin Damascus leau. in the Gulf," White House press spokesman for detonation, and he was told only to put Whatever the outcome, thepersonal sta­ Larry Speakes stated on May 12. them in a certain place at a certain time, not tus of Rouleau in Tunis has receiveda major "We are concernedthat the recent action their time of detonation. Failure to follow

48 International EIR · May 23, 1986 Briefly

• U.N. SECRETARY Xavier Per­ ez de CueIlar, during a recent visit to Spain, told El Pais newspaper that the U.S. atack on Libya was "deplor­ orders would have meant that, the next time, victed KGB spy, ArneTreholt . He also be­ able" and could not be justified as thebomb would have exploded while stiIl in longed for years to both the "Palme Com­ legitimate defense. He was in Spain his possession. mission" on East-West relations and David to inaugurate a foundation to the . Rockefeller's pro-Soviet Trilateral Com­ memory of murdered Swedish Pre­ mission. He is a strong supporterof Soviet mier Olof Palme in Barcelona. Greenpeace lawyer policies for "nuclear free zones" in Scandi­ advisedBonn on SDI navia and CentralEurope . • GREAT BRITAIN will cut de­ Immediately after the assassination of fense spending for the first time in seven years,: the first time since Mar­ According to the Washington, D.C., corre­ Swedish Prime Minister Olof Palme, Holst garet Thatcher took office , the British spondent ofthe FrankfurterRundscha u, the emerged in the center of a Soviet KGB dis­ governmentannounced May The West Germaneconomics ministryconsulted information campaign which vainly at­ 12. governmenCs annual defense "white the U.S. law firmof Wilmer, Cutler & Pick­ tempted to pin the blame on European as­ paper" says that defense expenditures ering, to influence the U.S. side during ne­ sociates of EIR founder Lyndon LaRouche. would fall by about over the next gotiations on the German-American coop­ He told journalists in "background discus­ 6% three years. It put the budget eration agreement for President Reagan's sions," that LaRouche and the European La­ 1986-87 at billion. Strategic Defense Initiative. bor Party , headed in Germany by his wife , $28.7 Helga Zepp-LaRouche, "helped in the cre­ Lloyd Cutler, partner in the law firm, ation . . . [of the] atmosphere of hatred" in THE INDIAN government on formerchief counsel to PresidentCarter and • Sweden, which was "ultimately responsi­ May I extended a ban on two extrem­ a member of the Trilateral Commission, ble" for the killing of Palme . ist Sikh organizations, the Dal Khal­ made headlines when he represented the sa and the National Council of Khal­ radical anti-nuclear Greenpeace organiza­ istan, for anQther two years. The ban tion in a court case against the French gov­ imposed on the two organizations in ernment. Cutler is an avowed enemy of the Israeli gun-runners 1984 was to have expired on April sm, and of the U. S. Constitution, for that plan counterattack 30, 1986. the organizations have matter. been charged with preaching and en­ Having him play a role in the German­ Israeli intelligence sources have told EIR to couraging Pmtjab secessionist and vi­ American sm agreement is like hiring Mik­ expect a counterattack on U.S. security olent activities. hail Gorbachov to advise NATO. Who in agencies from Israeli mafia-linked gun-run­ Bonn was responsible for selection of the ners whose operations into Iran were re­ • DEMONSTRATORS tried to legal advisers is not known at this time . cently busted up by the arrest of some 17 of blockade a U.S. Army Pershing-2 their number in Bermuda. missile base in Mutlangen, West Norwegian government Most prominent among those arrested in Germany on May 9, for the second April for planning to smuggle billions in straight day. Police arrested 37 peo­ a threat to NATO U.S. arms to Iran was retired Israeli Gen. ple, raising the two-day arrest total to Avraham Bar-Am. Whether he and his as­ 54. AIl were later released. Involved On May 9, Norway officiaIlyinstaIled a La­ sociates areextradited to Israel or the United were about 100people, many of them borParty minority government . Prime Min­ States is now the subject of negotiations be­ elderly. A group caIled Civil Diso­ ister Gro Harlem Brundtland began by teIl­ tween the two countries. bedienceCampaign for Disarmament ing a new conference: "Austerity is an in­ Bar-Am, implying that his operations had asked elderly people to tum out . adequate term for the vast economic restruc­ had the fuIl approval of at least some ele­ turing that must take place." Her Labor Par­ ments in the Israeli government, at one point • HARRY �CHLAuriEMANwas ty would caIl for much tougher austerity threatened to "teIl all'' if Israel aIlowed him named U.S. ambassador to Brazil , measures than those whose rejection in par­ to be extraditedto the United States. the White House announced on May liament prompted the resignation of her Israeli intelligence sources say that a 8. Schlaudeman, nicknamed Conservative predecessor. presscampaign is soonto be launched against "slaughter" in Ibero-America, is an Her government, with its generally pro­ the American FBI, blaming it for the arrest expert in coups and destabilization Soviet posture, poses a serious threat to the of confessed Mossad spy Jonathan Jay Pol­ for the State Department circles as­ cohesion. of the Western Alliance. Exem­ lard in December 1985, and for the Bar-Am sociated with Henry Kissinger, and plary is the appointment of Johan Jorgen affair, accusing the agency of being "still has been "ambassador" to numerous Holst as defense minister. under the control of the traditionaIly anti­ South American countries. Holst was a close personalfri end of con- Semitic faction of J. Edgar Hoover. "

EIR May 23, 1986 International 49 TIillFeature

Who subverted, America's sohools? by an EIR ResearchTe am

This article is based on some highlights fr om Ell.'s new Special Report, The Libertarian Conspiracy to Destroy America's Scho$ls, released on April 30. The · report was prepared by Carol White and Carol Cleary, with a special appendix by Lyndon H. LaRouche, Jr. It is available from EIRfor $250.

The American educational system is in thedeepes� crisis of its history. While at the time of the American Revolution we had the higllest literacy rate in the world, today the teachers themselves are failing basic literacy tests. Science and mathe­ matics have virtually been eliminated from school durricula, and in their place we findcourses in "alternative sexual lifestyles ." Consider the following shocking statistics: • On 19 academic tests given to students in ther industrializednations, Amer­ icans ranked last 17 times, and were never either first or second in performance. Thirteen percent of all 17-year-olds were found to �e functionally illiterate: They could read words, but could not discerntheir meanilllg. Two-thirds of 17-year-olds could not solve mathematics problems requiring several steps. • In Baltimore, 20% of the teachers hired in the fall of 1985 failed a written examination which required them to write a short p�agraph inviting parents to an open house. The test was designed to measure rudiIJlentary mastery of the English language, such as sentence structure, spelling, and punctuation. • In Arkansas, a curriculum for junior high school students calls for students to play a "values clarification" game. They draw a card from a deck of cards and discuss thetopic indicated on the card. The subject/; include: masturbation, group sex, oral-genital sex, and homosexuality. One man�al suggested for use in Arkan­ sas schools had the following words of wisdom to offer students in the way of "sex education": "Otherbo ys, about one in ten, are interestedsome time before pUberty in the idea of putting another boy's penis in their II¥luth." • American students spend one-half to one-third as much time learning sci­ ence as students in Japan, West' Germany, or the Soviet Union. The 10thgrade is the last time the majority of American high school istudents take a science course.

50 Feature EIR May 23, 1986 The grandfathers of the Aquarian kookery in today's schools: John Dewey (top) and Julian Huxley (bottom). Also shown is a parade in New York City.

Fewer than one-fifth of our high school students take even a parents wealthy enough to afford private schooling determine one-year physics course, while in the Soviet Union all sec­ the curriculum of their children's schools-and to hell with ondary school students take a compulsory five-year sequence everybody else. of physics courses. The total number of physics teachers in As this report will document, the opposition between the United States is less than 10,000 and shrinking rapidly, these "left" and "right" groupings is only superficial, since whereas in the Soviet Union there are 123 ,000, with 8,500 their crusade against universal quality education is based more being trained every year. upon the same assumptions: those of British liberalism and This collapse in the quantity and quality of education has pluralism. chiefly two, interrelated but somewhat distinct, causes. The These assumptions are the very opposite of the traditional firstcause , is the accelerating, post- 1966 slide of the United Judeo-Christian standpoint which the educational system of States into a "post-industrial society" scrap-heap, with the the United States should be duty-bound to uphold. Lyndon shrinking of the value of the per capita tax-revenue base H. LaRouche , Jr. , in an open letter to United Federation of accompanying that slide. The second cause, is the progress Teachers President Albert Shanker published in EIR's Spe­ of a campaign of radical revision of the goals and content of cial Report, identifies the following values as the postulates education, the insistent intrusion ofthe "post-industrial coun­ of our culture: terculture ," to the point that some spokesmen for the National "1) Belief that individual human reason converges, by Education Association (NEA) openly avow that the goals of degrees of decreasing imperfection, upon congruence with education include destroying the institution of the "nuclear the lawful ordering of the universe; family. " "2) Belief that hedonistic impulses must be checked by counsel of reason respecting the consequences of both actions Leftists and libertarians and policies of practice; The NEA and kindred organizations of the left-wing "3) Belief in the desirability of scientificand technologi­ counterculture promote the fraud of "value-free" education, cal progress; encouraging students to "do their own thing," however per­ "4) Belief in the heterosexual "nuclear family"; and, also, verse that might be. A right-wing backlash has recently de­ that the protection of these four principles requires the addi­ veloped against this, centered in the Washington, D.C.-based tion of a fifth: Heritage Foundation and assorted libertarian and Christian "5) Belief in the constitutional form of republican nation­ fu ndamentalist groups. What is their battle cry? "Close the state. public schools!" Rejecting the benefits of two centuries of "Then, if these five postulates are replaced by five oppos­ public education in the United States, they would have those ing assumptions, the population so affected will gradually

EIR May 23, 1986 Feature 51 alter its entire belief-structureaway from the Judeo-Christian turecontin ue, to thepresent day as the characteristic feature norms of Western civilization, to adopt a directly opposite of the unfolding of history. The oundations of Judeo-Chris­ belief-strurture. " tian republican culture, and E pean physical science, are Platonic-not Aristotelean. The way out of the crisis Another point of curriculum must be an accurate history What can we propose to remedy the crisis in education? of the origins and development of the American republic, The basis for a solution can be found in the reforms which with an emphasis on primary so ces-the works of Frank­ Wilhelm von Humboldt introduced into Prussia in the 19th lin, Washington, Hamilton, Jo Adams, John Quincy. Ad- century. ams, and so forth . I Every future citizen has the right to a universal classical­ The primary arid secondary �chool mathematics curricu­ humanist education in arts and science through the 12th grade. lum should be developed entirel� from the premises of syn­ Except for remedial programs, there should be no "tracking. " thetic geometry, to equip gradl/lates to cope with a world In primary schools, it is not necessary that children spend which will be dominated by the �chnologies now emerging several years drawing ugly blotches, in which blotches both from the frontiers of science: co+trolled thermonuclearplas­ parents and teachers must discern "artistic talent" by some mas, directed-energy physics, fd non-linear spectroscopy mysterious agency. Albertian perspective can be introduced of living processes. I to the educational play of young children, thus affording the child a means for discriminating "rightness" from "wrong­ The NEA and Jeremy Be.tham ness" in drawing. Later, on the secondary level, the student We now proceed to expose e role of the National Edu­ can be introduced to Leonardo da Vinci's correction of Al­ cation Association in the destruc� ion of American schooling, bertian perspective: projections of convex hemispherical and to investigate the evil ideo .ogical underpinnings of its mirrors, and know of his or her own independent judgment, belief-structure. why Leonardo's perspective corrects an error inherent in The NEA was founded in 1.57 in Philadelphia. It was Albertian perspective. originally organized by the pre idents of 10 state teachers' The benchmark objective of secondary education should colleges, as a political organization to determineeducational be the fostering of future leading scientific discoverers. The policy. In 1885, the NEA had only 625 members; now, with essence of scientific progress, is the discovery of some axi­ 1.7 million members (out of a total of 2.1 million U. S. omatic fallacy permeating some aspect of currently accepted teachers), the association contrJls the fieldof American ed­ ucation. Its delegates constituted the largest bloc at the 1984 Democratic Party convention,: which nominated Walter Even more insidious than the NEA's Mondale as the party's il1�fatedi presidential candidate. It is the largest governmentemploydes union in the country, and l�-wingpol itical postures and its is second in size only to the Teanj.sters. It extends its influence encouragement ojsexual through control of the Nationhl Training Laboratories, a perversion in the name oj"sex clearinghouse for the impositicj,n of "sensitivity training," therapy group sessions on governmentand industrial leaders, education," is the method which it as well as on teachers. has introduced into the school The NEA supports environmentalism, the nuclear freeze, system: "group dynamics." one-world government, and th� legalization of drugs; it op­ poses nuclear power and population growth, and demands "gay rights" and the preferential hiring of homosexuals. Ac­ cording to recent editions of its �fficialHandbook: scientific opinion. The essential requirements for such dis­ coveries, are clearly two. First, scientificdiscovery demands NEA urges the United S�ates and all other nations developed powers of independent judgment, and confidence to adopt a freeze of the te�ting, development, pro­ in those powers. Second, those powers must be competent; duction, emplacement, and deployment of nuclear the power of independent judgment must be made rigorous, weapons and all systems d�signed to deliver nuclear especially with respect to comprehension of axiomatics. weapons .... The cornerstone of classical education until the present Private possession and u$e of marijuana should not century, was the pupil's learningof classical Greek republi­ carry criminal penalties .... can literature in the original-and rightly so. If the pupil is The National Educationall Association believes that to comprehend the internal features of the 2,500 years of personnel policies and praQtices must guarantee that persisting conflictbetween republican and oligarchical forces no person be employed, �tained, paid, dismissed, and ideas, he must begin by mastering these issues in the suspended, demoted, transferred, or retired because earliest setting in known history in which the conflictis doc­ of race, color, national origin, religious beliefs, res­ umented. The arguments posed in the classical Greek litera- idence, physical disability, political activities, profes-

52 Feature EIR May 23, 1986 sional association, activity, age, maritalsta tus,family "liberals"whose ideology is fascis� to the core. relationship, sex, or sexual orientation [emphasis In his 1920 book, Reconstructlpn in Philosophy, Dewey added]. outlined the foundation of his philosophy: If truth does not exist, students can beled to accept pragmatic justification for Even more insidious than the NEA's left-wing political immoral acts. What is "good," is what is encouraged by the postures and its encouragement of sexual perversion and socialgroup. Dewey wrote: "sex education," is the method which it has introduced into lf ideas, meanings, conceptibns, notions, theories, the school system: "group dynamics." This hideous practice systems are instrumental to an: active reorganization of sensitivity sessions and ego-stripping has fostered the of the given environment, to a removal of some spe­ "other-directed" character of today's youth, which deprives cific troubleor perplexity, then ftetest of their validity the individual of any scientific and moral criteria of judg­ and value lies in accomplishing this work. If they ment. What is "good," is what the peer group demands. All succeed in their office, they are reliable, sound, valid, values are"relative": After all, what our society may esteem, good, true ....Would not this ,urther application [of may be repudiated by the Eskimos, and vice versa. There the method to morality] demand precisely that we is no absolute difference between sanity and insanity: The advance to a belief in a pluralitYlof changing, moving, man judged insane by one society or social grouping might and individualized goods and ends, and to a belief be hailed as a genius and a prophet by another. that principles, criteria, laws � intellectual instru­ The "sex education" perversions of the current decade ments for analyzing individual ",nique situations? . . . merely provide the excuse and the vehicle for introducing They are tools, and as in the qase of all tools, their such "touchy-feely" group-dynamics brainwashing into the value resides not in themselves, but in their capacity school system. to work shown in the consequences of their use. This belief structure was shaped most immediately by John Dewey. But the real "godfather" of the association In his book The Moral Principf,es of Education, Dewey would have to be Jeremy Bentham, the British sodomist and elaborated on this new "social" determination of values: Satanist whose 1785 essay "Pederasty" (in defense of that A study is to be consideredas a means of bringing practice, naturally) contained the following statement of the child to realize the social scene of action. Thus what could be the NEA's credo: "It may be asked indeed, considered it gives a criterion fqr selection of material if pleasure is not good, what is life good for, and what is and for judgment of values. We have at present three the purpose of preserving it?" independent values set up: one; of culture, one of in­ Introduction to the Principles of Morals and Leg­ In his formation, and another of discipline. In reality, these islation, Bentham laid out the principles which are taught refer only to three phases of sdcial interpretation. in the "values clarification" curricula of today: By 1918, Dewey and his self-proclaimed Progressives Nature has placed mankind under the governance had control of the NEA, which issued a document, The of two sovereign masters, pain and pleasure. It is for Cardinal Principles of Secondary� Education, modeled on them alone to point out what we ought to do, as well his educational precepts. His program, which was ultimately as to determine what we shall do. On the one hand, adopted throughout the U.S. eduqational system, attacked the standard of right and wrong, on the other the chain the notion of classical academic i education, defining the of cause and effects, are fastened to their throne. They classroom in terms of a group-therapy setting. Contrary to govern us in all we do, in all we say, in all we think; the crudest behaviorist theories, Dewey asserted that social every effort we make to throw off our subjection, will group approval is the essential mediator in learning. serve but to demonstrate and confirm it. In 1933, thirty-four individuals! led by John Dewey pub­ lished a fascist manifesto, for which they appropriated the This rej ection of universal moral values forms the belief­ name of "humanism," in an effon to confuse those who structure of both the NEA and associated "gay liberation" barely remembered that humanism was a concept of the movement, and of the "right-wing" countergangs like the Renaissance. In 1941, the American Humanist Association Heritage Foundation. was founded, and its Manifesto pledged the "humanists" to The evil influence of John Dewey the following: The single most pernicious influence in the destruction of a. Deny God as Creator and accept the evolution­ American education has been John Dewey, one of the foun­ ary theory of man's origin as fact. ders , with William James, of the pragmatist school of philos­ b. Label traditional religious concepts as inade- ophy. Dewey was an important American member of the quate. British Round Table conspiracy, whose purpose was to reas­ c. Believe there is no life after death. similate the United States into the British Empire. Two others d. Do not tolerate worship or prayer. of this grouping were Bertrand Russell and H. G. Wells, the e. Formulate values by means of "scientific in-

EIR May 23, 1986 Feature 53 quiry." f. Strive for control of all human institutions, in The NEA National Trainin Laboratories were a focal order to impose their philosophy. point for the dissemination of m thods of group therapy into g. Assert that man is essentially a product of his the United States in the postwar riod. They were modeled environment. upon the British Tavistock Ins tute, which combined the h. View the free enterprise system as grossly in­ development of group therapy th the profiling and manip­ adequate and believe a socialized and cooperative eco­ ulation of whole populations, on �half of British intelligence nomic order must be established for the common good. services. Established in 1946 as jm offshootof the NEA, the National Training Laboratories' first director was KurtLew­ The Manifesto was updated in 1973 to include an attack in. The methods of the earlier �havioral scientists were to on the sovereign nation-state: be refined and the whole Ameritan population, not just the schools, was We deplore the division of humankind on nation­ to become a laboratory for these mind control­ lers. alistic grounds. We have reached a turning point in human history where the best option is to transcend Lewin was an expert in psychological warfare, who col­ the limits of national sovereignty and to move toward laborated closely with the Tavistock Institute. He is consid­ t the building of a world community in which all sectors ered to be the father of "group dynamics," he theory which of the human family can participate. Thus we look to guides the practice of groupthera py. The idea is to substitute the development of a system of world law and a world peer-group pressure, often rei�forced by "touchy-feely" techniques of public sexual fordplay, for the family and its order based upon the transnational federal govern­ values. The group becomes a swlrogatefami ly, which has an ment. antithetical set of values to thos¢ upon which the individual This is precisely the program supported today by the had based his or her own previou� standard of judgment. This National Education Association. is the modus operandi of most effective brainwashing, and is I I

I in any case does not fall withiI). the field of UNESCO's competence. This does not meaq that UNESCO cannot do a great deal towards promoting lpeace and security. Spe­ UNESCO's subversion cifically, in its educational prowamme it can stress the of the nation-state ultimate need for world politic a!. unity and familiarize all peoples with the implications d,fthe transfer of full sov­ ereignty from separate natiotis to a world organiza­ The United Nations Educational, Scientific, and Cultural tion ....It would be wrong, tor instance, if UNESCO Organization (UNESCO) functions as the international were to throw all its efforts into the task of raising the extension of the National Education Association. Like the educational level of the least ttdvanced sections of the NEA, it is dedicated to imposing a Malthusian world­ world's population .... federalist dictatorship which will eliminate the nation­ "Here it will be necessary quite soon to face the fact state. that only a certain fraction of boy human population is UNESCO founder Julian Huxley, a British racist and equipped by heredity to be able io take full or even reason­ colonialist par excellence, described his organization as able advantage of a fullhigher �r professionaJ.fu nction of an internationalizationof the ideas of John Dewey's NEA. a world society, in addition to its functions in relation to UNESCO: Its Purpose and Its Philos­ In his 1947 work, national societies, to regional �r religious or intellectual ophy, he elaborated this assault against the nation, and his groups, or to local communitie� .... racist theory of education. For 40 years now, this is the "It is well known, for insmqce, that mathematical and philosophy which has governedone of the United Nations' musical aptitudes have a gen�tic basis; and the proper largest bureaucracies: analysis will undoubtedly confirm this, though perhaps ''The moral for UNESCO is clear. The task laid upon less obviously, for other types �f aptitude, such as for the it of promoting peace and security can never be wholly visual arts, for natural history!> for mechanical science, realized through the means assigned to it-education, and so on. It will be important 'or UNESCO to aid in the science, and culture. It must envisage some form of world working out of proper meth� for determining degrees political unity, through a single world governmentor oth­ of special aptitudes of this so11i, and later in the develop­ erwise, as the only means for avoiding war. However, ment of .educational systems *0 fit the facts thus to be world political unity is, unfortunately, a remote ideal, and discovered. . . . "

54 Feature EIR May 23, 1986 also the method of workshops used in sensitivity training, . husbands. The students were told naw to reveal class discus­ such as that attended by State Department personnel, teach­ sions to their parents, who were hound to be shocked by ' ers, industrial administrators , church officials, and even the them! armed forces. While New Jersey parents were able to prevent these Tavistock, like the NEA, is opposed to the spread of courses from being made mandatory in the school system, technology. In the mid- 1960s, the institute did a profile of Idaho parents suffered a defeat. They lost a vote on a bill the United States, attacking the influence of the space pro­ which was introducedinto the legislature which would have gram upon the American population. NASA's Apollo pro­ made it "unlawful for any employee of a school district to gram had catalyzed a mood of cultural optimism, and faith teach or imply in any way during the employee's working in the possibility of progress, which the Tavistock Institute hours in the school district, that the manifestation of sexual found unacceptable. desire toward a member of one's own sex or that erotic Following upon this report, new curriculum packets were activity with a member of one's own sex is a normal or designed by the NEA, utilizing techniques taken directly acceptable form of behavior ." The NEA had opposed this bill from group therapy sessions. Many of the teachers using on grounds it violated "free speech." them were put through sensitivity training, workshops in Drug use: The NEA's literature features a "value-free" "human relations," or directly under the auspices of the Na­ treatmentof narcotic drugs, including such statements as the tional Training Laboratories. In this way, they were prepared following: "Marijuana was not dec'ared illegal until 1937, to implement the curriculum material designed to lead the afteran energetic campaign by Bible Belt congressmen armed student to question the "value" of technology. with lurid tales of sinful acts committed by marijuana drugged Is it any wonder that a school system in which these men and women." belief-structures become hegemonic, eliminates science Zero growth: The Washington-based Zero Population courses? The creative, inquiring scientific mind obviously Growth Foundation has developed 20 curriculum guides for has no role to play in the group-dynamics session, which use with childrenfrom kindergarten ito sixth grade. These are forces the individual to accommodate to the "consensus" of now in use in the Baltimore school system. Here are some of the group. the "games" the children are taught: 1) The childrenare given a set ofpoker chips representing · The NEA's brainwashing program food, shelter, and water. Each child� plays the role of a coun­ The most potent technique for transforming the child into try , and is told to grab up as many chips as possible. Then a raving "value-free" libertarian, is to encourage him to ex­ the children are asked: "If you dorl't have enough food d9 press his or her most infantile sexual impulses. The fact that you think your country should grow in population?" the NEA, along with Jeremy Bentham and William Buckley, 2) Childrenare taken on a fieldtrip to a cemetery, and are supportthe rights of pederasts to practice t�eir perversion by asked whether there are "high rise" burial sites. "Doesn't this giving thema privileged position as teachers, only makes the signal overcrowding inside and outside the cemetery? . . . situation that much worse. And the same individuals who What caused the deaths? Epidemics? Disasters? Where there now indoctrinate childrenwith the notion that homosexuality any genetic diseases that were inherited?" is an "alternativelife-style ," arealso propagandizing for lim­ 3) In a game called "Popumonsters," children entangle iting population growth, liberalizing drug use, and ending themselves so that they form a 1 ,OOQ-Ieggedmonster-"and scientific and technological progress. discover how hard it is to move arpund in crowded condi­ Sex education: As early as 1969, the NEA produced a tions." "Sex Education Series" which was distributed to schools for 4) Children are introduced to "theidea ofthinning out the childrenbetween the ages of 12 and 13. It was approved and garden by pulling out young vegetable plants so that room is published by the American Medical Association. The de­ made for the young plants that alrea4y exist. Get the children scription of the sexual organs and the process of orgasm was to see who can grow the largest radiSh .. Have each child role­ written in a style sufficiently explicitto be pornographic. But play being a seedling. Have the child try to 'sprout' while since then, the NEA's program has become even more ex­ other children are crowding all over him ....Ask the child, treme. For example in New Jersey, parentsrej ected what was 'How did you feel if you did not haveenough roomto sprout to be mandatory co-educational "sex ed" classes, which ex­ and grow?' " tended throughout elementary shool until the senior year in Pacifism: Schools in New York City, Pittsburgh, Mil­ high school. Among the elements of this curriculum was an waukee, Los Angeles, Baltimore, and San Francisco now exercisein which students were asked to strip before a mirror include courses in "peace studies. " One impetus spurringthe (at home) and write an essay describing their bodies. Con­ introduction of this material into the cUrriculum was the tel­ doms were to be blown up and treated as balloons. Older evised showing of the filmThe Day After,in November 1983. children were not only told to accept homosexuality as an Advisers to the NEA on "peace" classes include the Union of "alternative life-style," but to question in what way women Concerned Scientists, a principal lobby group against the were different fromprostitutes if they were supported by their U.S. Strategic Defense Initiative.

EIR May 23, 1986 Feature 55 The libertarian backlash thatof "free choice" was the I ding theme of Milton Fried­ The campaign against the NEA which has been launched man's book, by the Heritage Foundation and other libertarian groups, is a Free to Choose. Friedman, lof course, is the major econ­ fraud. These groups also trace their philosophic lineage to omist for the radical right. In! this book, he endorses de­ Jeremy Bentham, and, despite their rhetoric, are in agree­ criminalization of drugs-in flIll agreement with the "left­ ment with the NEA on a more fundamental level: They be­ wing" radicals of the NEA le�ership. lieve in pluralistic values, rather than the objective existence Another leading "right-wi�g" deschooler is Samuel L. of truth. From this standpoint, they have launched their sub­ Blumenfeld, whose book Is Public Education Necessary? versive drive to close down public education altogether. is a venomous attack on the institution of the public schools. In the chapter, "Public and Private Schools" in Heritage's His oligarchical view of the poor and minorities is a flat A New Agenda/or Education. Alan Snyder writes: rejection of the American reWblican ideal, and would be From the time of the early colonies to the conclu­ soundly endorsed by the late �ritish racist Julian Huxley , :bo sion of the War between the States, private schooling the founder of UNESCO (see x): ; was the most prevalent form of education in the United The most commonly h� ld view of public educa- States. . . . An early rationale for public education tion-the view that persua�es many of us to preserve was espoused by Horace Mann, the "Father of the Common Schools." He sought to overcome the po­ tential for social strife by mixing the rich and poor in a public system that would instill each child with nonsectarian thinking. This is a distortion of the history of education in the The 'new age�of United States. Snyder goes on to defend "privatization" of education, because it guarantees the right of parents to see satanism in A.;erica that their children are taught according to whatever values system they hold. While no one would deny the right and The destruction of moral vhlues and scientific criteria of obligation of parents to supervise the education of their judgment in the Americanl school system has led to the children, and to instill moral values in them, it is a perversion shocking proliferation of s*tanic cults among school-age of the Judeo-Christian tradition to extend that "right" to children. A parent wakes u� to findthat his child has been allow parents to educate their children in evil. Snyder would murdered, the victim of soine local peer-group-based sa­ leave the education of the child completely in the control tanic cult, or that he comOllitted murder or suicide while of his parents, without regard to their level of morality, or involved in role playing duringsome magical cult activity . to whether they have a sufficiently informed judgment to Deweyism, and its mqdern versions, has taught the be able to choose a teaching program for their child. He child that no truths, no uni�ersals, no higher purpose for would allow the libertarian the same latitude. To continue man exists. When even the perversions of the National Snyder's argument: Education Association's "�ex education" classes become The question to be asked today is: How can an too "boring" for the jaded youngster, he reaches for even education system meet the needs of a free and pluralist more outrageous obscenities, and for a feeling of "belong­ society? Perhaps an educational monopoly could have ing," an illusion of status �d power, through the mystical been justified in the 19th century, when people hon­ world of the occult, and el�borate fantasy rituals likethe estly believed that education would become an exact game Dungeons and Draglms. science and when there seemed to be a consensus on Satanism is officially tecognized by the United Na­ American values. If this were true then, it certainly tions, through an operatiqn known as the Lucis Trust, is not now .... which operates as a nongo,(ernmentalcooperating agency The only way to meet the educational needs of and is assigned an official f'meditating" room. The Lucis diverse groups is to encourage considerable local ini­ Trust is a principal controller of satanic cults in the United tiative in the educational process. This will require States. Its name was ch�ged from the more revealing reversing the loss of local control over education. . . . Lucifer Trust, in order to give it some respectability. Its Today , the idea that parents are the primary educators supporters have included Imch notables as Max Lerner, of their children and they delegate this responsibiltiy Robert McNamara, Margatet Sanger, and NormanThom­ to teachers bears little resemblance to reality. The state as. The occultist, futuristic building which houses its off­ appoints the teachers, and the parents merely accept ical headquarters in Was.,.ington, D.C., the Temple of what is provided. Understanding, is frequently referred to as the "spiritual The notion that the primary right of every individual is

56 Feature EIR May 23, 1986 it-is, without doubt, the least accurate, in that it tells plain, "The unattainable ideal of manJst equality has been us very little about the realities of public education. converted into a 'right.' " T It is based on a collection of myths which most Amer­ In fact, the tax breaks and other benefits which these icans are quite reluctant to give up. The first myth is authors demand for private education, would undermine that public education is a great democratic institution whatever is left of the foundations of public education, and fundamental to America's prosperity and well­ poorer parents would be driven to provide cut-rate education being .... for their children. Why are these myths so hard to discard? Because The State has an important role to play in fostering it requires discarding an even greater myth that props universal quality education. But it is not just a question of up the whole edifice: that all men are created equal money; the key is to rediscover the 11Ilethodological supe­ and that government, as the great equalizer, is the riority of classical education, in the tradition of the Humboldt most benevolent dispenser of human goodness, gen� reforms of the 19th century in Germany. Only once this is erosity, and justice on earth .... done by an impassioned movement of parents, educators, The Heritage Foundation echoes the same oligarchic and others, can the NEA and its libertarian countergangs be attitude. In the introduction to the New Agenda. they com- effectively put out of commission.

United Nations." It is designed with six rays, indicating rebellion against enforced religion and old outworn stan­ the religions of Christianity, Judaism, Islam, Buddhism, dards and philosophies-are equally rtsponsible. How­ Confucianism, and Hinduism, which are synthetically ever, under the coming world order, etIucators will pre­ amalgamated into one amoral global religion, just as the pare the young people in schools and cbllege for partici­ sovereign nation-state is to be replaced by one world gov­ pation in an active and consciously realized group life." ernment. The group's "new age" philosophy calls for imposi­ The Lucis Trust supports the United Lodge of tion of a one-world, Malthusian governtnent: Theosphists in New York, which producesLucis (former­ "Our problem is to attain the kind of overall synthesis ly Lucifer) magazine, published in London. Support comes that Marxism and neo-Scholasticism p�vide for their fol­ from the United Nations, the Council on Foreign Rela­ lowers, but to get this by the freely cl�osen cooperative tions, communists, secular humanists, and the American methods that Dewey advocated ....W e need not only Friends Service Committee. the political synthesis of a World Federation in which the The kind of satanical cultural paradigm shift this con­ Eastern and Western hemispheres function like the right spiracy has begun implementing is spelled out in one of and left lobes of man's brain, with the :seat of the World its books, firstprinted in 1954, Education in a New Age. Brain serving as the point of decussatidn of the planetary by Alice A. Bailey: nerves, but we need also a planetary way of life, a plane­ "The Piscean Age dealt with the details of the endea­ tary ethics, and a planetary way of feelling to supply the vour to measure up to a sensed ideal ....The conquests powerful drive we shall require for the great tasks that lie of science, the conquests of nations, and the conquests of ahead of us. . . ." territory are all indicative of the Piscean method, with its Bailey specifiesthe way education must be shaped by idealism, its militancy, and its separativeness in all fields­ Malthusian doctrines in the new Aquari/m Age of Lucifer: religious, political, and economic. But the age of synthe­ "1) The emphasis in the future will �hift from the urge sis, of inclusiveness, and of understanding is upon us, and to produce large families to that of producing quality and the new education of the Aquarian Age must begin very intelligericein the offspring. This will i�clude that science gently to penetrate the human aura. . . ." of which eugenics is the distorted and exoteric indica­ The nuclear family as such is a special target for attack tion .... by the Lucifer cultists. Bailey continues: "2) The need of an increasing birtfuate will be even­ "The family group (like all else in human affairs) has tually regarded as erroneous. . . . The economic situation shared in the general separativeness, selfishness, and in­ will make it necessary that certain physical restrictions .dividual, isolated exclusiveness, based on class distinc­ should be imposed, because it is now evident that beyond tions, inherited traditions, racial attitudes and national a certain point the planet cannot support humanity. . . . custom. . . . The grip of the past upon families is a factor "3) The science of eugenics and of sex hygiene and which is largely responsible for the revolt of modem youth the development of mentally controlled relationships will . against parental control, though other factors-such as steadily grow."

EIR May 23, 1986 Feature 57 �ITillInvestigation

How the press runs extortion for the!ADL by Michele Steinberg

In a May 12 appearance on ABC-TV's "Good Morning the upcoming run-off election. Afterthreats against his fam­ America," 1988 presidential candidate Lyndon H. La­ ily, Varella announced his \fithdrawal from the race, saying Rouche, Jr. told interviewer David Hartmanthat Associated that he had been informed that the "smears would continue." Press is assisting the internationaldrug lobby in an extortion The operation against V arel)a has been traced to top Demo­ operation against his supporters. crats such as San Antonio MayorHenry Cisneros, who push­ Asked "To what extent do [the news media] represent es legalizing drug economi� in Ibero-America. you correctlyor incorrectly?" LaRouche replied: But the most blatant case of extortion in this anti-La­ "I sampled 6,500pieces of coverage of me in print media, Rouche campaign is the cafe of Charles R. Zimmerman of around the country, during a period of approximately the last Sarasota, Florida, an elderly man who was threatened be­ 30 days. In most cases there was very little coverage of cause of his supportfor La�ouche. Zimmerman financially anything I actually said ....But there was a tremendous contributedto LaRouche's 1984 presidential campaign, and amount of repeat of wild, fictitious, sometimes outright lying to the Fusion Energy Founpation, a scientific organization reports emanating and traceable to the drug lobby, Dennis which advocates "Manhattan project" crash programs for the King and company. So the news media . . . has not given the development of fusion enejrgy, and the Strategic Defense American people a direct representation of anything I stand Initiative. LaRouche helped to found PEF. for ....For example, Associated Press recently-an AP On April 26, the 79-yeaJi-oldZimmerman was the subject reporter was caught in assisting an extortion operation­ of a national wire story by Welch, a story, which was in fact Willie Welch-against my organization and supporters." designed by the Anti-Defaqlation League's Irwin Suall. Be­ LaRouche was referring to a national pattern of threats, cause of his support for L�ouche, Zimmerman had been slanders, and harassment, directed by the Anti-Defamation pressured, under threat of beinghauled to court by his bank­ League of B 'nai B'rith, with Dennis King, a reporter for the ers for an action to declare h�m "incompetent," to tum control drug lobby's house organ, High Times magazine, and run as of his finances over to his �ank. The bank, North Carolina a "private" arm of the corruptU.S. Attorney's officein Bos­ National Bank of Florida, \fhich is described in the publica­ ton, Massachusetts, headed by William Weld, offspring of tion American Banker as o�rating with "the fury of a bank the drug money-tainted Weld banking family. The primary robber given five minutes alone in the vaults at Fort Knox," targets of this extortion have been supporters of Lyndon has been implicated in que�tionable campaign contributions LaRouche's Presidential campaigns, and candidates who are to Florida bank regulator Gerald Lewis, cousin of the Florida running for elected office on the program of the National and Ohio-based drug banker Marvin Warner. Democratic Policy Committee, the political action commit­ tee associated with LaRouche. How the ADL operat�s Most recently, this drug lobby apparatus, working with According to sources , close to the Anti-Defamation the San Antonio, Texas Democratic Party, turned its venom League, a systematic financial warfare operation against on Donald Varella, an NDPC-backed candidate who received LaRouche associates was ,ctivated in late 1985, when the the highest vote total in the election for chairman of the ADL concluded that a Boston grand jury witchhunt against county Democratic Party, and was expectedto win easily in LaRouche's campaign committees, and his political associ-

58 Investigation EIR May 23, 1986 I ates, run by Weld for the last 19 months, was failing. The Zimmerman, who has been described by PEF personnel ADL operation has several stages and centers of activity, as an energetic thinker who fully suppOrts the PEF's inter­ which work closely with the Boston U.S. Attorney's office: national campaign to organize allies' support for the sm, First, large contributors are identifiedby agents working now lives under virtual prison conditions imposed by the for the ADL, through Federal Election Commission records, bank. His mail is intercepted and read by his bankers. Tele­ and frominformation fromattorneys working for drug-linked phone calls are screened at a switchboard; unfamiliar callers institutions such as First Fidelity Bank of New Jersey, and are reported to bank officials. the National BroadcastingCompany. Names of contributors are cross-checked with several anti-LaRouche operatives, Organized crime links including Dennis King and other High Times reporters, for All the operatives in this anti-LaRouche campaign are further information and identification. King is a stringerfor connected to drug traffic and money laundering. Kenneth the ADL's Irwin Suall, who has attempted to insert himself Bialkin, chairman of the Anti-Defamation League, is the as an "expert witness" into the Boston Weld investigation. former partner and attorney for Robert Vesco, a fugitive who ADL lawyers and personnel are deployed to harass rela­ now runs a cocaine empire for Fidel Castro out of Cuba. tives of contributors, spreading the ADL-concocted lies that Bialkin is also the attorney for the ADL's bank, Sterling LaRouche is a "neo-Nazi" and the like. The relativesare told National, which has been implicated in fraud. Another of to pressurecontributors to withdraw supportfrom LaRouche. Bialkin's preferredclients is Israeli mafiafigure Shaul Eisen­ Similar contact is made with contributors' bankers and attor­ berg. neys. The contributors' names are fed to a stable of reporters , U. S. AttorneyWeld is tied through familyinterests to the such as the above-mentioned AP reporter Welch, for public internationaldrug laundromat Credit Suisse, and covered up exposure and further pressure. its connection to the Bank of Boston; Investigations into On April 13, the New York Times carried a front page Zimmerman's bank, the NCNB , show that this bank may be story, purporting to report on the "finances" of 1988 presi­ in league with similar forces. dential candidate LaRouche, in the wake of the victory of According to Penny Lernoux's book:In Banks We Trust, LaRouche supporters Janice Hart and Mark Fairchild in the the NCNB was approached for a dubious $40,000 campaign Illinois Democratic primary. contributionto Gerald Lewis, candidate for the Florida State The source for the Times story was the Boston U. S . Comptroller (who regulates banking) in 1982. Attorney's office, and a so-called public document filed by Gerald Lewis is the cousin of Marvin Warner, the former Dan Small, the prosecutor in the fruitless Boston grand jury ambassador to Switzerland, whose drug financing and fraud investigation. The article, which resulted in federal ethics resulted in the collapse of a stringof Ohio-based savings and complaints against Small for illegally leaking grand jury in­ loan associations. In the early 1980s, Lewis attempted to formation, was a "signal" for the start of a media drumbeat block the Drug Enforcement Administration's "Operation accusing LaRouche and associates of fraud. Greenback" that nailed Warner's MianH holding, the Great On April 26, William Welch surfaced a national wire American Bank, for laundering cocaine money from Col­ story on the case of Charles R. Zimmerman, alleging that ombia's Isaac Kattin-Kassin. Warner was never charged in Zimmerman had been pressured by the PEF. the case. The same year that Lernouxreports the soliciting of Investigations show that it was actually Welch's collab­ dubious campaign contributions from NCNB , and the bank orators in the story who did the pressuring. they were acquiring, Exchange Bank of Florida , NCNB won According to confidential sources, Welch is working di­ federal and state approval to become th� firstinterstate bank rectly with the ADL's Irwin Suall, and with Dennis King, to to operate in Florida. That deal was a bonanza which made target financial contributors to political organizations and the institution the largest and fastest-growing bank in the companies that they say are connected to LaRouche. Sources southeast United States. close to the ADL report that Welch has been "fed" the names Southern banking insiders say that tberace for interstate of a list of "substantial" financial supporters and gears his banks such as NCNB to get into Florida was directly related interviews to "poisoning the well." Several days after his to the impact of the Florida dope trade that brought billions story on Zimmerman, Welch reported on his travels to Okla­ into the state banks-the worst centers of money laundering homa to interview Nick Anderson, another LaRouche sup­ in the United States. There is good reason to believe the porter. NCNB benefited from that drug-money influx. One of the Welch is now working with the North Carolina National banks NCNB acquired in Florida is the Pan American Bank, Bank of Florida, which extorted a "voluntary" agreement which laundered funds for Heman and Roberto Botero, a that gave them control over Zimmerman's finances, to pre­ prominent Colombian cocaine family. The manager of inter­ pare legal action against the Fusion Energy Foundation. The national operations for Pan American, Dalia Rosales, testi­ NCNB has Zimmerman under "house arrest," but set up the fiedin June 1985 that she had tranferred the Botero funds to interview with him for Welch as partof thefinancial warfare four SouthAmerican banks. In December 1985, NCNB own­ operation against LaRouche. ership of Pan American was concluded.

EIR May 23, 1986 Investigation 59 numberof Commission me rs to eight. Civil Rights Commission Abram was made vice-c airman- of the Commission, and Linda Chavez was made s director. Chavez's husband, Christopher Gerson, is the ppliticaldirector of the American Israel Public Affairs CoII1D1fttee, the official Israel lobby in the United States. (Chavez Iwas replaced by Al Latham as staff director last Novembert) An idea whose Reagan had appointed qlarence Pendleton, a black Re­ publican San Diego busines�man, as chairman of the Com­ time has passed? mission in 1982, after he firep the then-directorArthur flem­ ing and another commissiqner. Pendleton had sat on the by EdwardSpannaus boardof a bank which allo'Ved Attorney-General Ed Meese to fall 15 months behind i� payments on mortgages worth $423,000. Pendleton is und�r investigation by the California On Friday, May 9, the U.S. Commission on Civil Rights attorney-generaland the Small Business Administration, and turned its facilities over to three of the most discredited op­ was sued for over $100,OOP by the Urban League of San ponents of Lyndon H. LaRouche, permitting them to mount Diego. The General Accou-.ting Office is also investigating a vicious attack of lies and falsehoods against the only an­ the Commission for mismapagement, and a congressional nounced Democratic presidential candidate. Billed as an "in­ committee is following up t4e GAO investigation. formational briefing," the Commission took testimony from On April 16, twenty-eisht black Republicans called on Dennis King, a writer for the drug-pushing High Times mag­ Pendleton to resign immedi�tely from the Civil Rights Com­ azine, Irwin Suall, an official of the organized-crime con­ mission. They said that Penflleton "has no constituency and nected Anti-Defamation League of B'nai B'rith (ADL), and no license to speak for black! Republicans. " And on April 21 , John Rees, a fruity British intelligence stringer. another conservative Reagap appointee to the Commission, Reviewing the Commission's recent history, it is not John Bunzel, also called up

60 Investigation EIR May 23, 1986 1 Levy has been closely linked to two r�ent assassination­ bomb plots in the New York-New Jers�y area and another assassination in California. : The Voice published statements by Gail Gans, special assistant to Irwin Suall at the Fact-Findi�g Division of ADL Why are KGB, ADL headquarters , according to which Mortlechai Levy was a source of information on Lyndon LaRouche to the ADL for spying on LaRouche? a number of years. Affidavits to this effckt had been submit­ ted to the FBI in November 1984 when L¢vy was caught jury­ X by Jeffrey Steinberg tampering in a federal civil case in Ale andria, Virginia on behalf of the ADL and its co-defendant, the National Broad­ casting Corp. Even afterLevy was implioatedin a gun assault They'renow becoming regular dance partners in a macabre against the home of a LaRouche associate, no action was tango involving espionage and political assassinations. taken against Levy by the FBI. First, court evidence came out during the week ending The same New York-area JDL, accQrding to Friedman, May 10 in a San Francisco courtroom suggesting that KGB is heavily under the sway of the Soviet KG B-in partthrough spy John Walker may have been on the payroll of the Anti­ a IS-person JDL chapter in Brighton Beach, Brooklyn made Defamation League of B'nai B'rith (ADL) at the same time up exclusively of Russian emigres. Ambng the JDL-Soviet that he was selling U. S. government secrets to the Soviet members are several veterans of the Red Army . KGB . The suggestion is being made by Walker's subordi­ Federal law-enforcement agents believe that the Brighton nates in his spy ring, who believed that they were working Beach JDL cell is run by a KGB agent who came to the for Walker on legitimate investigations. Among his assign­ United States 15 years ago and has beeb working at giving ments under the cover of being a "private investigator" re­ the Soviet secret police an inside contrpl over the Russian portedlywas infiltratingthe Ku Klux Klan for theADL. Later Jewish emigre community in Brooklyn'+-one of the largest came the attempted infiltration of the National Democratic in the world. Identifiedby Friedman onlylas "Alexi," the JDL Policy Committee, a registered political action committee figure has been associated with shakedown operations in the founded in 1980 by Lyndon H. LaRouche, Jr. , the only New York City taxi industry and other more violent criminal declared candidate for the 1988 Democratic Party presiden­ activities. At least one federal agent has: identified members tialnomination. of the Brighton Beach "all Russian" JDL. cell as the primary Then, sources in Stockholm reported that ADL officials, suspects in the assassination of Tscherirtl Soobzokov, a Pa­ led by Fact-Finding Division boss Irwin Suall, wereactive in terson, New Jersey based Russian emigre and U.S. intelli­ a KGB disinformation campaign to cover up Moscow's hand gence asset who was killed last year when a booby trapped in the assassination of Swedish Prime Minister Olof Palme bomb blew up as he opened the front'door of his home. last Feb. 28, by peddling a phony trailof connections linking Soobzokov had been targeted for an intense public harass­ politicalassociates of Lyndon LaRouche to the murder through ment campaign by MordechaiLevy just before his murder. Victor Gunnarsson. Gunnarsson, a one-time subscriber to a This JDUKGB pattern also crops up in the terrorist un­ Scandinavian LaRouche-tied publication, has been recently derground in Israel. According to EIR ' s SpecialReport, Mos­ dropped by Swedish authorities as a suspect. According to cow's Secret Weapon: Ariel Sharon and the Israeli Mafia, sources in U.S. intelligence, the Swedish foreign ministry, Avigdor Eskin, a Russian emigre, is one of the leading op­ and the Israeli diplomatic corps, Suall was the most active eratives of the "Temple Mount plot." Eskin, the son of a perpetrator of the anti-LaRouche fraud, next to Soviet Am­ Russian intelligence officer, emigrated to Israel, after form­ bassador Boris Pankin , a top KGB disinformation specialist. ing Moscow's first chapter of the JDL, land translating Ka­ hane's Never Again into Russian. Eskiniorganizes funds for ADL/Jewish terrorist links the terrorist groups plotting to blow up the Al Aqsa mosque Now, in its May 6 edition, theVillage Voice, aNew York on Temple Mount in Jerusalem. City weekly, has picked up and elaborated on charges first The two recent cases of Irwin Suall 'dancing to a Soviet published in EIR that both the ADL and the KGB have a tune in defense of KGB hit squads form part of a pattern that sizable stake in the Jewish terrorist underground-both in­ EIR has had occasion to report over a lOnger period. Suall side Israel and in the New York metropolitan area. "just happenedto be on the scene" at a Socialist International According to Robert I. Friedman, the author of the 3,000- conference in Lisbon a few years ago when a leading Pales­ word dossier on the Jewish Defense League (JDL) and its tine Liberation Organization moderate, lssam Sartawi, was offshoots, the Jewish Defense Organization (JDO) and Jew­ brutally gunned down in a hotel lobby. !Late in 1984, Suall ish Direct Action (JDA), featured as the front-page story in and the ADL were deeply implicated in the Soviet-run Sikh the Voice, at least one leading JDL figure, Mordechai Levy, separatist networks that assassinated Indian Prime Minister functioned as an informant to the Anti-Defamation League. Indira Gandhi.

EIR May 23 , 1986 Investigation 61 �ITillNational

Gramm-Rudman haunts militaryref orm debCilte by Leo Scanlon

On May 7, the Senate passed the Goldwater-Nunn defense in the hopethat vigilance wlll prevent arepeat of the disaster reorganization bill, and signaled a step-up in congressional in Vietnam. This sentiment is expressed in the vehement and efforts to shape and control the national security organization bureaucratically insightful ,attacks on the current round of of the U. S. government. Behind the thin facade of "military reform measures which have come fromthe military quarters reform, " there stands the stated policy of the Military Reform at the Pentagon. The bitter fact remains that there was no Caucus, its leaders Gary Hart (D-Colo.) and Sam Nunn (D­ successfulopposition to McNamara in the 1960s because no Ga.), and its dupe , Barry Goldwater (R-Ariz.): Steer defense one fought the "post-indu$rlal society" economic policies· policy away from the SDI, and abandon our European allies which made McNamara's reforms acceptable from a prag­ to the Soviet Empire. matic standpoint. IfPentagQn officialsdon 't draw this lesson, The Goldwater-Nunn reform bill is a somewhat more and mount a charge again� the Gramm-Rudman austerity, specific version of the recommendations contained in the thenGoldwater, Nunn, Pacl.card, and the reformers will do to Packard Commission report, but both measures have been Europe what McNamara di(lto Vietnam. roundly denounced by military professionals. Like the Gold­ water bill, the Packard report targets the policy planning and Vietnamize Europe? procurement apparatus of the Pentagon, and would have no The demand for decoqpling from Europe is the prime more importancethan anyof the numerous ill-advisedschemes subject of every document ever produced by the "military produced by the Congress in each session-if their propo­ reformmovement ." In 1978, a White Paperon Defense was nents were not carrying the club of the Gramm-Rudman issued by Sens. RobertTaft (R-Ohio) and Gary Hart, written budget-cutting amendment, as enforcement. by Taft's adviser, William Lind. Lind is now the military The Goldwater-Nunn bill and the Packard Commission adviser to Hart, and is the guru of the "military reform cau­ recommendations have their roots in the strategic policies cus." He is also the central figure in a network of so-called imposed on the u.S. government by Robert McNamara, conservative organizations Ilssociated with Paul Weyrich and Henry Kissinger, and others who were persuaded that the the Heritage Foundation. These organizations, nominally in United States would no longer be the premier industrial pow­ support of the Strategic Defense Initiative (SDI), have re­ er in the postwar world, and would be unable to meet its cently begunto stump for QaryHart and his critiques of U . S. political or military responsibilities as a "superpower." The military policy. Thereforej Hart's 1978 document is worth war cry of McNamara was "cost-benefitana lysis"; today we quoting at some length because it situates the real issues in hear the more direct demand for austerity. The fundamental the currentdebate very pre¢isely. fact of the matter was described by Gen. Maxwell D. Taylor "Only a few years ago�the United States could contem­ in 1960: "The determination of U.S. strategy has become a plate a world in which Amtrican powerfar surpassed that of more or less incidental by-product of the administrative pro­ any adversary, a world in which our economic resources and cess of the defense budget." our military capabilities seemed endless ....Shortages of McNamara and his policies are still hated among military basic commoditiesand slackening industrial productionhave professionals who today conduct vigorous doctrinal debate, cut into our wealth, and dOJllestic problems have claimed an

62 National EIR May 23, 1986 i increasing share of our resources. Rising .prices have added defense department structure, and putti�g the Gramm-Rud- to the cost of our armed forces. . . . Strategic realignments man clout behind their de-coupling poli¢y, Hart and his col­ in Asia, the Middle East and elsewhere, have shown that leagues intend to impose their policiejs on the Executive America can no longer afford to play a predominant military branch. To see how the Packard Commi,sion and Goldwater role throughoutthe world. bill facilitate this intention, one must ske¢h the process which "Any discussion of committing funds andmanpower must shapes military policy. begin with the basic reality that resources are limited. . . . Every member of Congress is aware of the need to make Chaotic process choices ...in allocating resources ....Responsibility also Ever since Robert McNamara reorg�ized the Pentagon extends [to] the allocation of resources among competing and imposed his "Planning, Programmjing, and Budgeting groups within the defense establishment iteslf. System" or PPBS, cost-benefit analysis,has been applied to "The Congress has attempted to carry out its duty . . . by every aspect of military procurement, with results that have setting manpower levels for the different services and by grown more disastrous by the year. �cNamara's reforms funding, or refusing to fund , the research, development, and created a situation in which none of �e subheads of the procurement of specific weapons systems. Nevertheless, it Pentagon's Five-Year Plan are matched with the actual ap- has generally failed to exert firm influence on our defense posture.... The Congress thus has both a legal and a prac­ tical obligation to debate new options for strategy and force structure.... This is particularly important in relation to The 'structural rlifonns' don't Congress's attempt to recover its legitimate role in determin­ address a single real �ue-they ing foreign policy. Congress has, in recent years, made a are entirely oriented to "political" determined effort to restore the constitutional place of the legislative branch in setting foreign policy. " concerns, and premised! on the The authors then identify the Guam Doctrine as the turn­ austerity assumptions ojthe ing point in U.S. postwar policy-and so it was, announcing Gramm-Rudman Congress. From the end of the U.S. commitment to our allies in Southeast Asia .. The next phase change in U. S. policy is targeted by the that standpoint, the Goltlwater­ paper: Nunn and Packard Com,mission ''The Department of Defense has apparently adopted a reports are just more oj the same Europeancontinental strategy . . . . It is focusing the bulk of its interest on the problems of land warfare in central Eu­ old musicJrom McNamdras band. rope." That is the substance of the debate over military reform from 1978 until today. Hart developed this theme in subse­ propriations subheads used by Congre� for the appropria­ quent papers, attacking those weapons systems which are tions for DoD and the services. As a �sult, a sniping war necessary to pursue global war, such as the aircraft carrier goes on daily in the halls of Congress, a� staffers alter nearly and heavy cruisers, the 82nd Airborne Division (which he every line of the budgets submitted b)\ the military . Each proposes to eliminate, since infantry divisions designed to alteration requires questions answered and studies re-done. fight in Europe are archaic), and high-technology electronic Not surprisingly, the paperwork demaqds this puts on the warfare weapons, especially aircraft fighter platforms de­ staffs of the services and the Joint Chiefs has increased 1,200% signed for anti-air and anti-cruise missile missions relevent in the last decade. The reformers tum 4lfOund and point to to the European battlefield. Consistent with their opposition this as evidence of Pentagon inefficie�cy, and propose to tothe SOl, Hart and his Heritage Foundation backers propose radically re-structure the staff apparatuf which present the a stripped-down military which could never threaten Soviet military's needs to the Congress. I . land armies in Europe. In tum, this chaos hits the service S�retaries and chiefs The most lurid expression of this strategycomes from the of staff of the individual services, who are responsible for Romanian-born Edward Luttwak, identified by Admiral training and equipping the armed force�; their staffs are un­ Watkins as one of "those critics with foreign accents who able to make any long-term plans, si9ce the budget they have never served their country. . . ." Speaking on behalf of develop, based on the "Defense Guid�ce" document pre­ the Georgetown CSIS, Luttwak proposes that the United pared by the secretary of defense and thq Defense Resources States must adopt the corruptmodel of the Roman Empire as Board, may or may not have any relation �o the budget passed a model for its military strategy in the global confrontation by Congress. i with the Soviet Union. Luttwak's hatred of republican mili­ Likewise, the requestsof the Unified;and SpecifiedCom­ tary strategy is common to all the so-called reformers. manders, the flag officers who are responsible to deploy By utilizing the power of the Congress to reorganize the forces in battle, are subject to the same anarchic process.

EIR May 23, 1986 National 63 Thesecommanders report directly to the secretary of defense acquisition and logistics. 1 and the President, and can be ordered into battle by those Wade proposed to crea�, either directly, or by steps, an authorities only. Their budget requests, for staff, training "acquisition corps" modeletl along the lines of the Foreign missions, and so forth , are submitted throughthe Joint Chiefs. Service-basedon educati�n, experience, and examination. (The Chiefs of Staff, of course, do not have the authority to The corps should have a pty scale and employment condi­ deploy troops-they are responsible to convert their intimate tions (subject to demotions1 firings, etc.) comparable to pri­ knowledge of their services' capabilities, the requirements vate industry. Military officers who become part of the corps of the unified and specified commands, the budget process, would be on a "career trackl" independent of their particular and national policy into sound military advice to the Presi­ service promotion boards, andwould be a new service. There dent, through the chairman of the Joint Chiefs of Staff.) would be established a "qefense Acquisition University" The sly proposal of Goldwater-Nunn, to make the field encompassing all the existing acquisition-related defense commanders directly responsible for their own budgeting, schools and specializations such as contracting and acquisi­ would vastly increase the control Congress has over the direct tion, logistics, quality, pr�am management, systems en­ fighting forces in the field, and would in no way "increase gineering. It perhaps should be named "McNamara U." the authority of the field commanders" as its proponents The concerns of critic� of this and related, less radical claim. proposals, are that the attempt to remove acquisition author­ ity from the services, only opens the process up to greater Weapons procurement congressional meddling an� further reduces the input of the The big control lever that everyone fightsto have a hand services and field commands into the process of weapons ' on , naturally, is weapons procurement. Here the political design-which, otcourse, is what Hart, Lind, Luttwak, and implications of policy choices are very direct. On the big other opponents of the military want to do. issues, like funding the sm, the effect of the budget on the The Goldwater-Nunn ptoposals carry this and many other implementation of the policy is transparent. On most issues issues to a grave extreme, With such proposals as the above­ it is not. mentioned elevation of the Unifiedand SpecifiedCommands The Packard Commission report begins with a statement to direct responsibilityfor planning and budgeting-a move describing this political guerrilla war: which would eliminate thje staff of the Joint Chiefs, and ''Today, there is no rational system whereby the Execu­ would also make the Chiefs of Staff and service Secretaries tive Branch and the Congress reach coherent and enduring ceremonial positions. What Goldwater and Nunn don't men­ agreement on national military strategy, the forces to carry it tion is that this proposal cQuld not function at all-now. Of out, and the funding that should beprovided-in light of the course, such a radical move could function once the PPBS overall economy and competing claims on national resources and acquisition process arc isolated entirely from the mili­ . . . planning must be .. . fiscally constrained, forward tary, as the Packard Comrhission and Wade proposals sug­ looking, and fully integrated. . . ." gest: The commands woulji then be directly at the mercy of In typical bureaucratic fashion, the report then suggests the congressional budget ptocess, and the nation would be at a series of "modifications . . . in our defense establishment," the mercy of Gary Hart �d his Soviet friends. At last we most of which are vaguely in line with reforms already carried would have an "enduring agreement between Congress and out by Secretary Weinberger which have streamlined the the Executive." internal functioning of the Pentagon. Finally, this whole sctfme leaves out any consideration There are two points, considered controversial, which of the subject of defense industrial base policy. What indus­ open the door to Congress's real intentions. The first is the triesare we actually going to have left to procure from? What matter of elevating the chairman of the Joint Chiefs of Staff country are they going to be in? To what extent are we going to the post of principal military adviser to the President. This to be dependent on foreig� sources for raw materials? And is opposed by the chiefs for the simple reason that it destroys what policies do we have, 110secure a thriving base of smaller the deliberative value of the current system, in which policy contractors and sub-contrjlctors? This is the real basis of disagreements among the chiefs must, by law, be presented determing how effective acquisitions will be. The "structural to the President. Likewise, a single military adviser is subject reforms" don't address a single real issue-they are entirely to greater"political" pressuresthan the corporate Joint Chiefs. oriented to "political" co�cerns, and are premised on the The more interesting element of the report, is a proposal austerity assumptions of the Gramm-Rudman Congress. A to create a new organization designed to centralize control real re-organization would scrap the heritage of McNamara, over acquisitions and procurement. This would be accom­ by placing the SOl on a crash footing, and using the resulting plished by the creation of an undersecretary of defense for relationship between natiopal labs, contractors , and the mil­ acquisition, who would have the same authority as a service itary as a model for the r¢st of the defense industry. From Secretary . Although sketchy in the commission report, the that standpoint, the Goldwater-Nunn and Packard Commis­ proposed organization is in the direction of a paper presented sion reports are just more ' of the same old music from Mc­ in 1985 by James P. Wade, assistant secretary of defense for Namara's band.

64 National EIR May 23, 1986 In black wards and Hispanic areas, the results were even higher. Harley Schlanger, running in the 8th CD in Texas, polled over 26% district-wide, but in the black wards where he campaigned, he ran from 29% to 48%. No wonder the Slagle organization wanted to disenfranchise the blacks. In two key Hispanic areas-Brownsville �nd San Antonio­ Wo uld the Democrats NDPC-backed candidates scored significantly higher than their totals across the state. Cowling ran above 18% across rather die than win? the state, but in Cameron Co. (Brownsville) he ran 32% and in Bexar Co. (San Antonio), 27%. In the race for Democratic by Stephen Pepper County chairman in Bexar County, NDPC-backed candidate Don Varella. pulled off a little Illinois, coming in first in a field of five with 39% of the vote. From PaulKirk, Democratic Party national chairman, to state The Bexar County saga exposes just how deeply corrupt chairmen Bob Slagle in Texas, Ed Mezvinsky in Pennsylva­ and impotent the Democratic "regular" Qrganization is. Sla­ nia, Jim Ruvolo in Ohio, and many more party officials is gle went to San Antonio to warn against the danger of the heardone repeated litany: LaRouche can't happen here. To LaRouche phenomenon. The voters listened, took down Var­ hear these gentlemen devote most of their public statements ella's name, and then voted for him and �owling. The Dem­ to LaRouche and what the media now calls the "LaRouche ocrats reacted with their usual grace uqder pressure. They phenomenon," it would appear that the Republican Party has attacked Varella as if he were an Orangeman at a Catholic ceased to exist. Indeed, as Republican National Chairman wake. Mayor Henry Cisneros, linked t(> drug-lobby advo­ Frank Fahrenkopf was quick to point out shortly after the cates nationally and locally, announced that the "regulars" , primaries of May 3 and 6, the Republicans are in far better would bolt the party, and the current county chairman swore shape than he expected because the Democrats have spent all that Varella would not have a penny even to keep an office their time and money trying to hunt down LaRouche candi­ open. The DNC nationally was directly involved, and a fund dates in their midst. He and others are confidentlypredicting of $40,000 to defeat Varella was planned. Under this pres­ that the GOP will hold on to the Senate in November. sure, Varella withdrew because he and his family were not What the Republicans are looking at is the sharp drop in prepared to face the "smear" campaign, as he said in his Democratic vote totals of which the Texas primary is the best statement of withdrawal. case in point. In Texas, the Democrats drew barely 1 million Slagle, Cisneros, and the local Democrats breathed a sigh voters, one of the lowest totals in recent times. In 1982, the of relief, but their glee is both misplaced and short-lived. Democratic gubernatorial race drew 1.3 million voters. In Varella was the only Hispanic in the race. By forcing him Houston, an unbelievably low 5.9% of the eligible voters out, the DNC and the Texas organization have given an turned out, actually below the Republican total in this Dem­ eloquent signal to minority voters. In November, Democratic ocratic stronghold. The major contributing factor to this col­ Gov. Mark White will need every black and Hispanic vote lapse was none other than state chairman Slagle and the he can find. But who will tum them out for him? Slagle? The Houston Post. Slagle, in an obvious attack on the "LaRouche man who orchestrated the lowest voter. turnout in years in phenomenon," urged voters to stay home unless they "knew" black wards? Cisneros, whose allegianqe to the Anti-Defa­ the candidates, as if voting had suddenly become slightly mation League is stronger than his ties tq fellow Hispanics? more intimate than holy matrimony. The Houston Post made The only Democratic bloc that has shown it can excite the same point in an editorial, and then abetted the vote the voters that Lyndon LaRouche has called the Forgotten dissuasion movement by mixing the addresses of the Repub­ Majority, is the NDPC. The laid-offblue-colla r workers of lican and Democratic polling places. This disenfranchised a Ft. Worth, Indiana, the debt-strapped farmers of western large part of the black vote in Houston, because in the black Ohio, just as the impoverished of southern Illinois, have wards there are no Republicans; so the newspaper indicated turnedout to vote the NDPC in the face of a storm of slanders . no contest in what were actually contested Democratic pri­ But the Democratic "regular" organization is either so corrupt maries. or so stupid-or both-that it does not get the message. Although Slagle and company were so fixated on "pre­ These blind fools are convincing the voters that only the venting another Illinois" that they depressed the Democratic NDPC will respond. The votes of the Forgotten Majority are vote, the result was that the candidates backed by the National indispensable to the Democratic Party . rhe pathetic perfor­ Democratic Policy Committee drew their highest totals ever. mance of the party in national elections since 1968 is directly Statewide, Noel Cowling received 182,000 for aggriculture attributable to the alienation these voters experience. They commissioner against a well-entrenched incumbent. In will not stick to the party out of loyalty, 4lsthey proved when congressional races where there were no incumbents, the they swung behind Ronald Reagan. Could it be that the pres­ NDPC candidates polled consistently above 20%. ent pack of Democrats would rather die than win?

EIR May 23, 1986 National 65 Brian Lantz, LoRouJ candidate fo< the Democratic California nomination for U.S. Sen�e and co-chairman of PANIC, maintains that there is "no t>ttter way to overturnCalif ornia's drug-rock-sex countercultute" than by backing this initiative. Lantz is challenging the v�ry liberal Sen. Alan Cranston, who works with "civil libe�ans" behind the AIDS Lobby. Incumbents fear Rep. Mervyn Dymally faces opposition from LaRouche Democrat Kevin Zondervan in the 31st Congressional Dis­ 'LaRouche lightning' trict. An aerospace engineer, Zondervan recently returned from Japan where he spoke' at the first conference ever held by Marla Minnicino there on the Strategic Defense Initiative, sponsored by the Fusion Energy F�ndation and the Schiller Institute. Just before the primary, Zondervan will release what he calls the "I am not taking any chances ...the LaRouche 'lightning' "Dymally Dossier,"-a documentary report on Dymally's might strike my district. ...We 're takingnothing for grant­ treasonous track record on issues which directly affect his ed." These remarks were made, not by a nervous Democratic constituents. The dossier points to Dymally's support for committeeman, but by three-term incumbent Congressman suicide-cult leader Jim Jo�s, his pro-Cuban leanings, his Meryvn Dymally (D-Calif.). Dymally is one of 11 Demo­ connections to organized crime, and his "sympathy" for lib­ cratic Congressmen in California being challenged in the yan dictator Muammar Qaddafi. It will show that his activi­ June 3 primary by candidates associated with 1988 presiden­ ties make him an accomplic� to the drug mafiaand its terrorist tial candidate Lyndon H. LaRouche. According to sources, networks. Dymally is "takilng nothing for granted." many of these incumbents are "running scared," from the Democratic incumbent� Barbara Boxer, Ron Dellums, LaRouche forces' growing constituency machine. Leon Panetta, Ed Roybal, .nd Fortney Stark are also facing Over 150 LaRouche candidates are on the June 3 ballot powerful opposition from �aRouche candidates. In the 16th in California, one for U.S. Senate, 16 for Congress, 7 for CD, Monterey businessmab Art Dunn has thrown down the state assembly and a least 120 running for state Democratic gauntlet to Republican-turnbd Democrat Leon Panetta, a sup­ (and Republican) central committee. Four state assembly porter of the Gramm-Rudnian budget-balancing law. Dunn, candidates and one congressional candidate are running as a lifelong Democrat, won �substantial support when he ran LaRouche Republicans. The bipartisan slate is led by Brian for state legislature in New iYork. Lantz, Northern California coordinator for the National In the 8th CD (Oakland-Berkeley area) , LaRouche can­ Democratic Policy Committee. didate Ruth Williams has p t together a machine of volunteer The NDPC has endorsed the California LaRouche can­ campaign workers to mob;lize the "forgotten voters" who didates as part of a national drive to "take back Congress" oppose Soviet-run incumb nt Ron Dellums. In the 5th CD, from the liberals and "appeasers" whose policies are sabotag­ Andrew Klein, who leftthe district becauseof high concen­ ing U. S. economic development and undermining America's trationof AIDS cases in S� Francisco, vows that the AIDS relationship with its key allies. risk can be reduced if the PANIC initiative is passed. Klein NDPC candidates have distributed over 50,000 pieces of has made support for Israeli Prime Minister Shimon Peres's literature, in a campaign to educate voters on the treasonous "Marshall Plan" for MideaStdevelopment a plank in his cam­ activities of their elected legislators, and to present a sane paign program. His oppondnt is Rep. Sala Burton. The cam­ approachto economic and foreign policy. Many of them have paign of LaRouche candidate Jim Legare, in the 6th CD, is made slide presentations before civic associations and Dem­ also being taken "very seriously" by his opponent, Rep. ocratic clubs on the "fraud of the recovery," the Soviet drive Barbara Boxer. toward a "global showdown," and on "AIDS: More Danger­ The LaRouche slate, which also includes five congres­ ous Than Nuclear War." sional candidates running a�ainst non-incumbents, has caused The LaRouche candidates are heading a drive for a pub­ great consternation in the Democratic camp. The state party lic-health approach to AIDS, by petitioning to place a refer­ has mobilized its local apparatus to "identify the La­ endum on the November ballot mandating state authorities to Rouchians" on the ballot. In April, Los Angeles County label AIDS an infectious disease and take emergency mea­ Supervisor Mike Antonovich asked the state Human Rights sures to prevent its spread. Working with PANIC (the Prevent Committee to "investigate'� the LaRouche group. And Dem­ AIDS Now Initiative Committee), the candidates are mobi­ ocrats in the 40th CD mo�ilized a frantic effort to recruit a lizing grassroots groups to collect 400,000 signatures re­ write-in candidate when thby realized that LaRouche candi­ quired to put the measure on the ballot. Over 1,000churches date Art Hoffmanwas runding unopposed. Their choice was and civic organizations are involved in the petitioning effort. Orange County Democratic party chairman Judge Bruce The initiative directly challenges advocates of "civil rights" Sumner, whose links to or�anized crime and the dope. mafia for the AIDS virus. make him the perfectfoil for Hoffman.

66 National EIR May 23, 1986 Eye on Washington by Nicholas F. Benton

The two cases add up to the fact overhaul of the method of assembling that the Reagan administration is un­ what they were then working on for a der an escalated siege aimed at doing bomb. This breakthough in basic what many have thought impossi­ physics research, he : said, then ena­ ble-tainting it with a stain of corrup­ bled himself in collaboration with the tion recallingWatergate . late John von Neumann to propose a The design: not only to make the new, more efficient a$sembly, requir­ President feel he is even more at the ing less plutonium, aM the bomb be­ mercy of the "Establishment" wing of came a physical possibility. his cabinet (Don Regan and George The lesson concernsthe indispen­ Shultz blows kisses Shultz), but also to shape the succes­ sible role of free, flexible basic re­ sion fight to ensure the Strategic De­ search in achieving rapid, crucial back at Kissinger fense Initiative is buried by the end of breakthroughs. This, he indicated, When I asked Secretary of State 1988. must proceed through exploration of George Shultz on May 14 what he the potentials in the x-ray laser, some thought of Henry Kissinger's latest of which the Soviets may have already syndicated column calling for a rede­ Dr. Teller: Manhattan struck upon. ployment of U.S. troops and F- l 11s Project method crucial Funding constraints which have out of Europe, Shultz waxed effusive narrowed options in the U . S. SOl pro­ in praise for Henry's "thoughtful and Testifying before the Senate Appro­ gram are a great hazard from this comprehensive treatment of the prob­ priations Committee on May 9, Dr. standpoint, he said. lems of out-of-area NATO deploy­ Edward Teller gave an alarming as­ ment, which he has raised and de­ sessment of Soviet superiority in the serves to be discussed." development of a strategic defense ca­ Garn: Let's get back Shultz's remarks, made after a pability using "new physical princi­ on track for Mars speech to the Overseas Writers Asso­ ples" such as lasers. ciation, werealmost as noxious as the His concern was in particular with An angry Sen. Jake Gam (R-Utah), sugary praise Kissinger heaped on the x-ray laser. Soviet research into the first Congressmanito ride intospace Shultz in the column itself, referring this technology was published until the aboard the Shuttle, IIlIidean appeal for to his "several thoughtful and elo­ early 1970s and then abruptly stopped. getting the U. S. spa¢e program back quent speeches" on the subject of ter­ Does this mean the Soviets are on to on track swiftly, despite the last four rorism. something? Dr. Teller asks this omi­ launch mishaps. One wonders if these two shouldn't nous question every chance he gets. He called for Pre.ident Reagan to think of some way to carry on this In an exclusive interview with EIR get off the dime and iPush for the ad­ flowering relationship other than after his testimony, Teller said the x­ ditional funding to build a new orbiter working at digging the grave of the ray laser is key because, of all the pro­ to replace the Challenger. "We've al­ Western alliance. grams under study in the SOl, it is the ready gone three mopths with no de­ only one that is novel from the stand­ cision," he said. "W¢ must have a re­ point of basic physics. Therefore, in placement to be abl� to service the Noose tightens his view, it holds the greatest potential space station that we must build. And for fundamental new breakthroughs. once we get the shac�les off, we must around administration Dr. Teller recounted his experi­ get back on the track �o go to Mars." Former Reagan special adviser Mi­ ence in the Manhattan Project, the He said that despite his "fiscal chael K. Deaver has coughed up his crash effort to build an atomic bomb conservative from Utah" profile, he White House pass, and former Teams­ during World War II. He said that it was "personally embarrassed that we ter President and FBI informant Jackie was a breakthrough by Emilio Segre didn't have a probe �p to study Hal­ Presser now faces indictment follow­ in late 1943, in fundamental scientific ley's Comet," and that the science that ing a scandal over the FBI's role in research into the atom, demonstrating will come out of the space program protecting him from a Grand Jury in­ the nature of "spontaneous fission­ makes its rapid recovery "indispensi­ vestigation. emitting neutrons," which led to an ble for our nation."

EIR May 23, 1986 National 67 '3

Congressional Closeup by Kathleen Klenetsky

C happen: Pulling troops pell proved a disappointment. Citing ry it out," the President wrote. from Europe a mistake budget restraints, he said that the full But House Budget Committee In the midst of a spate of new demands $4.8 billion which the administration chairman Bill Gray (D-Pa.) called the for the decoupling of the United States has requested for the program could WhiteHouse criticism "mindless pop­ and Western Europe, the new chair­ not be supported. pycock. . . . No one in theirright mind man of the House Defense Appropri­ thinks that the Russians are coming up ations Subcommittee has issued a the Potomac." strong warning against proposals to To which we can only reply: You withdraw or cut the number of Amer­ House to Moscow: 'You've may be in for a helluva surprise, Con­ ican troops now based in WesternEu­ got a friend in D.C.' gressman. rope . Soviet warplans may have been dealt

In an inteview with Reuters May a setback by the Chernobyl disaster, , 13, Rep. Bill Chappell (D-Fla.), said but the U.S. Congress is doing its a troopwithdrawal or cut "would send darndestto compensatefor the loss. Congress takes up cudgels the wrong signal ....It would indi­ On May 15, the House of Repre­ against strategic defense cate a reduction in our own will to sentatives delivered up a budget that Given Chappell's generally strong pro­ stand prepared and stand willing must have brought tears of relief to defense posture, his claim that the against an aggressor." Moscow's rulers. A product of the Strategic Defense Initiative doesn't Chappell sounded a verydifferent House Budget Committee, the plan stand a chance for full funding is a theme from many of his colleagues, proposes to cut the administration's surefire indicator that the program is who went on an anti-NATO binge aft­ FY87 military spending plan by a gi­ heading into some extremely rough er most Western European govern­ gantic $35 billion-$16 billion more waters. ments failed to give public backing to than the underfunded budget ap­ With the sm budget now being the U.S. military strike against Libya proved by the Senate earlier in May. debated on the Hill, the "Better Red May 15. That's not all that's wrong with the than, Dead" crowd has launched a NATO "is almost daily improv­ plan. It increases taxes by $7 billion, frentied mobilization aimed at influ­ ing," said Chappell. "We're learning and specifies that the new revenues encing how much money Congress al­ better how to work together as a com­ can be used only for debt repayment, locates to the program. munity of nations ....I think we're whereasthe Senate budget, which also In early May, a coalition of over beginning to be more cohesive ....I hikes taxes, asks that they be invested 100 labor, anti-nuclear, church, en­ think we're learning how to exchange in the military. The House bill also vironmentalist, and assorted nuclear­ technology better than we have in the slashes U.S. foreign aid by 10%. freete groups, sent off a letter to Con­ past." House endorsement of the mea­ gress calling for sm spending levels Chappell, whose influence over the sure came despite impassioned pleas to be held down, on the grounds that defense budget rose significantly with by President Reagan not to "cripple" "the Star Wars program ...[will] be his takeover of the subcommittee, in­ the U.S. military. ruinously expensive . . . destroy the dicated he will take the Pentagon's side Reagan had firedoff a letter to the entire fabric of arms control and ex­ in the dispute over the proposedMidg­ House Republican leadership prior to pand the arms race into outer space. " etrnan missile. Chappell told Reuters the vote, charging thatthe "radical anti­ A week later, the announcement he believes the missile should be defense" Democratic budget would came that 6,500engineers and scien­ transformed from a single-warhead "cripple the combat readiness of our tists have taken a pledge not to partic­ launcher-as originally envisioned by conventional forces and take unac­ ipate in the program. Their action­ Henry Kissinger, Brent Scowcroft, ceptable risks with our national secu­ frighteningly reminiscent of the 1930s, and the Trilateral . Commission rity. wheJlthe appeasement faction of that crowd-intoa multiple-warhead mis­ "It would be wasteful and irre­ day protected Hitler's war prepara­ sile. sponsible to cut short this program by tions by promoting the so-called "Ox­ But on the issue of the sm, Chap- denying the funding necessary to car- ford Pledge"-was unveiled at a Cap-

68 National EIR May 23, 1986 ! itol Hill press conference hosted by ture and industry . its export earnings to interest pay­ Rep. George Brown, the California U.S. farmers, the report asserts, ments. As the debt crisiscontinues to Democrat whose close friend and ally have been badly hurt by a dramatic fester, with no perm�ent solution in in the anti-SDI movement, Carol Ros­ decline in exports to Latin American sight, additional Latin American lead­ in, was unmasked as a KGB agent two countries, which tumbled from $6.9 ers might conclude that this sort of years ago. Brown said the "pledge of billion in 1981 to$4.5 billion last year, solution is the only · way to restore resistance . . . represents one of the while the Latin American debt crisis growth and improve standards of liv­ most compellingstatements yet made "has also contributed to the collapse ing. If they unilaterally begin to limit against" the SOL of numerous farmbanks" in the United their country's interest paymens to Meanwhile, the Defense Depart­ States. 10%, or even 15%, of export earn­ ment's plan to establish an indepen­ But the study's most interesting ings, the impact on b� profits, cap­ dent think -tank to provide advice on featureis its sharpwarning that unless ital, and solvency w,l be even more thedevelopment of the SDI has drawn the United States agreesto some form severe." . fire from another vehment foe of stra­ of debt restructuring, the whole inter­ tegic defense, Sen. Carl Levin. The national financial system could be Michigan Democrat is charging that turnedon its head. the Pentagon is jeopardizing the in­ The report dismisses the adminis­ Byrd tries new: dependence of thenew institute by in­ tration's Baker Plan as entirely inad­ 'war powers' tactic viting only pro-SDI scientists to join, equate, saying it does not differ "sig­ Senate Minority Leakier Robert Byrd and by insisting on a voice in choosing nificantly"from existing policy"aside (D-W.Va.), still whiining about Pres­ senior personnel. fromchanging the rhetoric from aus­ dent Reagan's alleged failure to suffi­ What really has Levin so upset, terity to growth and shifting respon­ ciently consult Congiess beforeorder­ sources tell EIR , is the prospect that sibility from the [IMP] to the World ing the U. S. retaliat�ry strike against the creation of such a think-tank would Bank." Libyan targets last month, has intro­ build up an SDI lobby so strong, that Instead, it proposes two alterna­ duced a bill to prevent Presidents from shutting the program down or finan­ tive policies: decreasing or eliminat­ having such freedomi in the future. cially starving it would become im­ ing the spread which U.S. banks Joined by Sens. OaibornePell (0- possible. charge on loans to financiallytroubled R.I.), Sam Nunn (D-oa.) and Patrick debtor nations; and, far more politi­ Leahy (D-Vt.), Bytd introduced a cally significant, limiting interestpay­ "Counter-Terrorism �d War Powers ments to 25% of each debtor-nation's Resolution," to create an 18-member Congress fe ars 'radical exportearnings . group of lawmakers with whom U.S. actions' on debt The latter proposal, in particular, Presidents would ha... e to consult be­ The Joint Economic Committee is­ indicates just how frightened certain fore taking military actionabroad . sued a study May 10 on ThirdWorld policy-making circles are that lbero­ Byrd said that it is obvious that indebtedness reflecting the growing America may simply decide to follow Reagan cannot conshlt with all 535 concern in some quarters that Ibero­ Peru's Alan Garcia andstand up to the members of Congres� and this makes America may soon be compelled to IMF. it necessaryfor Congress to clarify in take "radical action" to deal with its "In the future," the report omi­ legislation "what consultation should debt. nously concludes, "some negotiated be and should not b�." The proposed The study charges that the Reagan arrangement limiting debt service group would includ� the Speaker of administration, in attempting to deal payments may bethe best way to avoid the House, the Senate Pro Tempore, with the debt problem, has pursued more radical, unilateral actions by the majority and minority leaders of policies which reward the big Ameri­ Latin American debtors. During his both chambers, and· the House and can banks "whose unwise lending pol­ 1985 inaugural address .. . . Peruvian Senate chairmen of the intelligence, icies helped precipitate the crisis," President Alan Garciaannounced that armed services, and foreign relations while penalizing American agricul- his country would devote only 10% of committees.

EIR May 23, 1986 National 69 ," iiI ! NationalNews

purc�s of new texts and equipment. • Tfterewill beno 1986 summer school.

District mandates American taxpayers • Therewill be no fieldtri ps. • Therewill be a25% reduction in pur­ insurance for AIDS subsidize Hammer chase of audio-visual equipment. The Washington, D,C, City Council ap­ The $2 billion in taxes which the five U.S. • The opening of the 1986-87 school proved a bill May 13 to prohibit health and oil companies operating in Libya pay Qad­ yearwiD be delayed until Sept. 5. life insurance companies from denyingcov­ daft's government accounts for one-quarter These cuts will affectmore than 156,000 erage to persons who test positivefor expo­ of that country's yearly operating budget, students of military families overseas. sure to AIDS. which includes funds devoted to carrying The bill was opposed by the national out terrorist attacks on U. S. interests. insurance industry, which used a $200,000 By contrast, the U.S. government col­ media campaign to warn that its enactment lects little or nothing from these same cor­ would result in higher insurance premiums porations-W. R. Grace, Occidental Pe­ Mor Mossad agents for everyone else. troleum, Marathon, et al .-according to a � The bill prohibits insurers from denying recent congressional study . leaving government? coverage to anyone on the basis of a positive "I doubt very much that the American I Noel Koch, the Department of Defense's medical test for exposure to the AIDS virus. people, if they knew, would want to subsi­ top c0'¥1ter-terrorism official and a suspect­ For fiveyears, the companies cannot charge dize Qadaffi's terrorism," Rep. David O�y ed ageqt of the Israeli Mossad, will be leav­ higher rates to those who test positive for (D-Wisc.) says. "Yet that is what they're ing his post at the end of May. exposureto AIDS . At the end of that period, beingforced to do ." And Rep. FortneyStark Ko<:h is a close associate of Michael insurers can petition the superintendent of (D-Calif.) remarks: "Peter Grace loves to Pillsbury, a believed Mossad officer fired insuranceto allow higher premiumsfor AIDS talk about government waste. I suggest his from State Departmentin early May. He victims . company stop paying taxes to Qadaffi so the the is also dose to Richard Perle, the Assistant U.S. government can 'waste' less on airport Secretary of State for Technology Transfer, security." who h4S recently come under attack, and who is iidentified as a Mossad spy in EIR's Hart calls for law recent :Special Report, Moscow's Secret Weapon: Ariel Sharon and the Israeli Ma- on money laundering Education cut for fia. Janice Hart, the Democratic nominee for The reasons for Koch's apparent purge Illinois secretary of state, has called on the military kids are unclear. The Washington Post reports state's party chairman to aid her in passing The Gramm-Rudman budget-cuts are thatKoch will "take his talents to the private a bill that would outlaw dirty money-laun­ wreaking havoc with the education of chil­ sector. He and several others plan to form a firm dering by the state's financial institutions. dren of members of the U.S. armed ser­ securityand counterterrorismconsulting A local UPI wire datelined Galesburg, with ofifices in D. C. and other countries." vices, statistics show. Illinois reports that Hart, the "LaRouche Even beforethe latest cuts, army schools Democrat" whose upset victory in the March were running on a per-capita budget $915 18 primaries created nationwide headlines, below the national average. Gramm-Rud­ has sent a letter to state Democratic chair­ man will mean an additional 4.9% cutback. man Vincent DeMuzio urging his support Jack Anderson's column in the May 13 for the money-laudering bill. Washington Post lays out what this will mean Dole: Reagan veto In the letter, Hart told DeMuzio that "as to the children of service personnel-the the chairman of the Democratic Party and a could be overriden nation's best source for future career mili­ leading [state] senator, your sponsorship of Senate Majority Leader Robert Dole (R­ tary personnel: a bill to prevent drug-money laundering in Kan.)stated on May 14 that President Rea­ • One of every three teachers leaving the state's financial institutions will make gan faces an uphill battle to reverse congres­ the system will not be replaced. passage of this urgently needed legislation sional rejectionof U. S. arms sales to Saudi almost fully assured ....The key to de­ • A freezewill be imposed on hiring of Arabia. "He wants us to sustain a veto [of a stroying the drug traffic is breaking the fi­ art, music, physical education, and other Resolutionof Disapprovalof the sale passed nancial nexus that allows it to operate ." "specialty"teachers . by both Houses] and we need 12 votes," To date, DeMuzio has made no reply. • A moratorium will be imposed on Dole told reporters after a GOP leadership

70 National EIR May 23, 1986 i Briefly

• A FEDERAL JURY May lO ac­ quitted Louisiana Gov. Edwin Ed­ wards, his brother, and three associ­ ates in their retrial on charges that they made $10 millionby selling state 48 meeting at the White House. a matter of to 72 hours we'd have agree­ hospital construction permits. After At that meeting, Reagan stated: "There ments that would change the world. ' the verdict, Edwards blasted U.S. is no region in the world so pivotal to the "Asked to elaborate, LaRouche said he Attorney for Louisiana John Volz for course of events as in the Middle East." could quickly get pacts with the non-aligned a politically motivated vendetta Denial of the sale would "undermine the nations, most nations in Africa, South against him. "John Volz started this credibility of all our security commitments America, and Southeast Asia, and with Ja­ thing over a year:ago with a political inthis critical regionof the world," he added. pan and forces in Europe. mission. It shows you how farhe was The arms deal would involveair-to-air, "'Forty-eight to 72 hours of my being willing to go with his unbridled use surface-to-air, and anti-ship missiles to res­ President, we would have fundamental of his political �wer." tock the Saudi arsenal . The United States changes in monetary policy, in strategic pol­ last sold military hardware-AWACS icy, in trade policy and these would be very • GEORGE SHuLTZ during May planes-to the Saudis in 1981. beneficial to the United States,' he said, 14 remarks to thb Overseas Writers After the meeting, Sen. Richard Lugar adding he would push for a 'new Marshall Association in ; Washington, was (R-Ind.) announced that the number of votes Plan in the Middle East.' asked by NBC's paniel Schorrabout had narrowed to ll, with Sen. Nancy Kas­ "LaRouche said only Reagan has been reported prosecution of news media sebaum (R-Kan.) prepared to support the partially successful in finding solutions to who publish "leaks" of U.S. com­ arms deal. the many problems. munications intelligence. EIR corre­ "'Reagan, I think, has been a better spondent Nicholas F. Benton then President than his predecessors but there denounced NBCs refusal to identify were some very bad stages there and he too the location of terrorist Abu Abbas, has ducked and failed to face the issues,' he whom NBC interviewed. The secre­ said." tary of state call�d the leaks "a dis­ LaRouche: 'I can solve gusting gusher," but said jurisdiction problems in 48 hours' lay with the Jus*e Department, not the State Department. Declared Democratic presidential contender Lyndon LaRouche, Jr. told interviewer David Hartman of CBS's "Good Morning Pentagon: Space • JACKIE PR.ESSER, president America" show that only he could solve the of the TeamsterS union, will be in­ nation's problems: "Within 48 to 72 hours program faces shutdown dicted by federal prosecutors on of my being President, we would have fun­ The u.s. space program faces a possible charges of hiring "ghost workers" for damental changes" in a number of crucial shutdown unless the government encour­ a Teamsters loc31 in Cleveland, Ohio. areas. ages private industryto enterthe space launch The New York ; Times reports that LaRouche said that none of the potential business, Frank Gaffney, the deputy assis­ prosecutors were also expected to in­ presidential candidates has "any compe­ tant defense secretary for nuclear forces and dict at least one IPBI agent who they tence whatsoever to deal with any of the arms control policy, stated on May 13 at a said used Presstr as an informant. issues" plaguing America. Therefore , he breakfast meeting in Washington, D.C. Previously, the pase against Presser said, "I think I have to be President." He said: "I think we're runNASA in a had been droppetl because of FBI op­ According to a national UPI wire, "As way that has made it commercially unattrac­ position. for his qualifications, LaRouche said in an tive for people to get into this business to interview on the 'ABC Good Morning compete.... What we clearly need is an • THE REAGAN administration America' program, 'I'm an economist, ability to reduce costs in getting our pay­ will ask Congress to change the Dav­ probably the best one living today . In terms loads into space," he said. is-Bacon Act in ways that building of the problems , I understand the issues. "The only way is competition. We have trade unions say that would come I've dealt with foreign governments, partic­ to get the government out of the business" close to demolishing prevailing wage ularly the developing sector. I'm very close of building rockets, ignoring the fact that protections for federally funded con­ to many of them. I've consulted with all of the entire history of rocketry has depended struction. The :administration will them. I know what they want. I know what on government supportfor development be­ propose to excllJde all military con­ they're willing to do . Therefore when it cause of the tremendous capital investments struction contraCts of less than $1 comes to foreign agreements, I know how involved. million and noh-military construc­ to get them. He ended by suggesting that the United tion of less than $100,000 from Dav­ "'There are people in foreign govern­ States should follow the Soviet example and is-Bacon Act coverage. It presently ment, if I were President, who would come build more rockets that are less technically applies to all co�tracts over $2,000. to Washington and I guarantee you, within sophisticated.

EIR May 23, 1986 National 71 '1 , , Editorial

The arrogance ofar bitrarypo wer

The Eastern Establishment, in 1986, encountered its Rouche. They have been c.ught stealing the money of worst nightmare: A mass-based political movement in­ political contributors-wQ mean literal, non-meta­ spired by the ideas of Lyndon LaRouche has, at last, phorical, outright stealing� as in the case of the First emerged in the land. What the Establishment knows, Fidelity Bank in New Jen�ey; they have been caught and has kept secret from the public, is the fact that the committing outright phySi�al violence against La­ LaRouche movement did not simply "emerge," in any Rouche supporters, as in �e case of Phil Donahue of mystical, spontaneous fashion, but took shape, through NBC; they have been cau�ht committing large-scale, arduous and persistent work over the years , in defiance outright extortion, as in th� case of Irwin Suall of the of the most repressive cainpaignthe Establishment had Anti-Defamation League atId William Welch of Asso­ ever launched. ciated Press; they have coquptedju dges and civil ser­ The story goes back to 1968, when the "elected vants to enlist them in theirianti-LaRouche crusade. Chairman of the Establishment," Mr. McGeorge Bun­ The entire Eastern Es�blishment is displaying all dy, was President of the Ford Foundation, pouring bil­ the classical symptoms of tPe most violent, hysterical, lions of dollars into a project to create the terroristNew crystal-throwing fitever thrPwnby any petulent, dried­ Left. From that distant date to the present, the tightly­ up old spinster since Kate

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