ATrue CrimeStory

First time ever in print The full, unexpurgated story of the Du Pont kidnap case

Read, in their own words:

• How the kidnappers-members of the criminal Cult Awareness Network­ plotted to seduce, kidnap, drug, and, if necessary, kill du Pont heir Lewis du Pont Smith, to stop his association with political leader Lyndon LaRouche; then went scot-free in the same judicial system that condemned LaRouche to life in prison .

• How Ollie North's Vietnam tentmate, a Loudoun County Virginia deputy sheriff, was at the center of a near-miss assassination of LaRouche by sharpshooters during a 400-man $8.00

paramilitary raid. Shipping and handling: $3.50 for first book, .50 for each additional book.

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or call Ben Franklin Booksellers (800) 453-4108 (703) 777-3661 fax (703) 777-8287 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editorial Board: Melvin Klenetsky. Antony Papen. Gerald Rose. Dennis Small. Edward From the Associate Editor Spannaus. Nancy Spannaus. Jeffrey Steinberg. Webster Tarpley. Carol White. Christopher White ' Senior Editor: Nora Hamerman here aresome people around the world who are catching on to Associate Editor: Susan Welsh Managing Editors: John Sigerson. what'T I'm talking about," Lyndon LaRouche told the EIR staff re­ Ronald Kokinda cently. "I think we have a handle on changing the course of history." Science and Technology: Carol White This issue, chock-full of exclusive stories, w ll give you a good Special Projects: Mark Burdman � Book Editor: Katherine Notley idea of what LaRouche has in mind. From the uproar against Interna­ Advertising Director: Marsha Freeman tional MonetaryFund austerity in Ukraine, Nigeria, Mexico, and the Circulation Manager: Stanley Ezrol Philippines, to the intervention by parliamentarHlIl Sergei Glazyev INTELLIGENCE DIRECTORS: Agriculture: Marcia Merry in the Russian State Duma, there is a growing recognition that the Asia and Africa: Linda de Hoyos world economy is on a course toward disaster. Counterintelligence: Jeffrey Steinberg. Paul Goldstein One year ago, LaRouche issued his "Ninth Forecast" on "The Economics: Christopher White Early Disintegration of World Financial Markets." He has now com­ European Economics: William Engdahl Thero-America: Robyn Quijano. Dennis Small missioned a Special Report, which will be published in EIR soon, to Law: Edward Spannaus prove that all the about Russia and Eastern Europe: talk solving America's 'financial crisis by Rachel Douglas. Konstantin George balancing the budget and cutting entitlements is a lot of hogwash. United States: Kathleen Klenetsky The real question is, why is it that the United States government, and INTERNATIONAL BUREAUS: state governments, cannot afford what we coul readily afford in Bangkok: Pakdee Tanapura. Sophie Tanapura � Bogota: Jos� Restrepo 1966, or even 1976? The tax-revenue base has ollapsed, and the Bonn: George Gregory. Rainer Apel c Buenos Aires: Gerardo Teran economy has become saturated with debt service and speculation. Copenhagen: Poul Rasmussen Analyzing what has gone wrong, we will also demonstrate to Houston: Harley Schlanger Lima: Sara Madueiio you, from a scientific basis, why it is that the American System of Mexico City: Hugo LOpez Ochoa Political-Economy is the right alternative to the p esent system. Milan: Leonardo Servadio New Delhi: Susan Maitra This week's Feature will serve to whet yourr appetite for that Paris: Christine Bierre tI longer report, as it documents the shift in the U.S. workforce from Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson productive to unproductive activity, and the devastating conse- • I Washington, D.C.: William Jones quences of that shIft. Wiesbaden: Garan Haglund Two other exclusive stories in this issue should be singled out. ElR (ISSN 0273-6314) is published weeldy (50 issues) First is Linda Everett's Investigation of the breakthroughs in medical except for the second week of July. and the last week of December by EIR News Service Inc .• 317 Pennsylvania science that absolutely refute the lies of Jack "Dr. eath" Kevorkian. Ave .• S.E .• 2nd Floor. Washington. DC 20003. (202) 544·7010. For subscriptions: (703) 777-9451. Second is Edward Spannaus's followup to last week'sp report on the EIU'OfJ"II H""_n: Executive Intelligence Review criminals in the Department of Justice. We now have the full story Nacbrichtenagentur GmbH, Postfach 2308. 0-65013 Wiesbaden. Otto von Guericke Ring 3, 0-65205 on why the DOJ' s Mark Richard was given a CIA 'award for "Protec­ Wiesbaden. Federal Republic of Gennany Tel: (6122) 9160. Executive Directors: Anno Hellenbroich. tion of National Security During Criminal Prosecutions." Michael Liebig 1. lhllmMl: BIR, Post Box 2613. 2100 Copenhagen 0E, Following this expanded issue, we will not publish next week, 40 Tel. 35-43 60 according to our usual summer schedule. We'll be back with the ,. Mu:ko: BIR, Francisco J){az Covarrubias 54 A·3 Colonia San Rafael. Mexico OF. Tel: 705-1295. issue dated July 21. /apa1I subseripdD. SIlks: O.T.O. Research Corporation, Takeuchi Bldg .• 1·34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyright CI 1995 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$I25. 6 months-$225, 1 year-$396, Single issue-$IO Postmaster: Send all address changes to ElR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIillContents

Interviews Investigation Economics 16 Chief C.O. Ojukwu S6 Kevorkian's victims needed 4 Worldwide revolt grows Chief Oj ukwu, a delegate to medical science, not suicide against IMF austerity Nigeria's National Constitutional Medical science does have new From lJkraine, to Russia, to Conference,fonnerly the military treatments for the conditions that Argent$na, and fromPakistan to leader of the 1967 BiafraWar, was Kevorkian's victims suffered from, Nigeri_, more and more leaders interviewedin London on June 11 but we can't use them if we let the recognize that the internal on the "national compromise" latter-day "body snatchers" deprive economic crisis they sufferis not achieved in drafting the new us of our reason. their cc!mntry's fault; and some are Constitution. openly consulting with Lyndon H. S8 What's available in pain LaRo�he, Jr. about the way out. 71 Bjorn Eriksson management The president of the International 6 'Life after the death of the Criminal Police Organization 62 The Passy-Muir valve IMF' seminar held in (Interpol). Guadalajara 64 The great potential of Documentation: The conference 72 Richard D. Schwein artificial bone manifesto, "Try the IMF for crimes Special Agent in Charge, FBI San against humanity!" and "Free us Juan, Richard D. Schwein, who from i,sanity of free trade," an handled "Operation Golden Trash." address to the meeting by Jaime Departments Miranda Pelaez.

Photo and graphic credits: Cover, S3 Northern Flank 11 Argentina: Debt . EIRNS/Christopher Lewis. Pages Bildt aids the British in the moratorium call causes 15, 37, EIRNS. Page 17, EIRNSI Balkans. furor Lawrence Freeman. Page21, Programme Crossroads Annenia. 80 Editorial 12 BrazU: Virtual stability, Page 27, United Technologiesl Fifty years too many. Hamilton Standard. Pages 29, 32- real disaster 35, EIRNS/John Sigerson. Pages 39, 50 (Presidents), 57, EIRNSI 14 Nige�a's policy debate StuartLew is. Page 50 (posters), rages at home and abroad EIRNS/Andrew Spannaus. Page 60, PRNewsFoto. Page 63, Passy­ 19 British fan trade war Muir, Inc. against Japan, Clinton

20 A proposal to make Armenia into Eurasia's economic crossroads

23 Currency Rates

24 Business Briefs Volume22. Number28. July7. 1995

Feature International National 36 Terror attack fails to 66 British elites jump on sllence Zapatista foes Wllson bandwagon Documentation: Excerpts from the The trashing ofPhil Grammhas speech by Ali Cancino Herrera, created an earlyvacuum in the who toured Europewith fellow ranks of GOP Presidential Mexican Congressman Walter Le6n campaign front-runners, and Robert Montoya to expose the EZLN Dole is no favorite of the London fraud. boys. So ....

Proven right again: Economist Lyndon H. LaRouche, 38 British intelligence 68 School privatization Jr. with his wife Helga Zepp-LaRouche, just after he footprints on Mubarak 'experiments' fall addressed the party congress of the Gennan "Civil Rights Movement-Solidarity" on June 18, 1995. assassination attempt 69 Local budget crises spell 26 LaRouche's ninth economic 41 Fujimori provokes harsh austerity forecast, one year later London's ire At the recent Halifax economic 71 Money lal$dering becomes summit. the assumption was that 42 Sovereignty is the crux of higher priOrity in war there is no systemic economic and Russia's political crisis against drq.gs financial crisis. but rather episodic Documentation: From Sergei problems, whose periodic eruptions Glazyev's speechduring the 73 How DOJ official Mark can bedealt with by administrative parliamentary debate before the means. EIR's analysis of the Richard won the CIA's vote of no confidence in the 'coverup award' ratcheting up of the debt obligations Russian governmenton June 21. since 1956, versus the decline of 76 Congressional Closeup the productive labor forcein the 47 Major survive the United States, shows that this not wm sinking Tory Titanic? the case. 78 National News 49 Italy at the crossroads Concluding a series.

54 International Intelligence • �TIillEconolllics

Worldwiderevolt grows against austeritY . IMF I by Linda de Hoyos

' Lyndon LaRouche, the American statesman and economist, Ukraine: looking for an alternative completed on June 24 a five-day visit to Kiev, Ukraine, LaRouche was invited to .Kiev by Natalya Vitrenko, a where he addressed members of the Ukrainian Parliament prominent member of the e�onomic commission of the and other policymakers on economic policy. The visit, which Ukrainian Parliament, and was welcomed by the president included his wife, Helga Zepp-LaRouche, and a delegation of the Parliament, Oleksandr Moroz. Ukraine is at a turning of the Schiller Institute, took place just at the point that point, LaRouche's hosts told him-a point of disillusionment leaders in Ukraine are becoming completely disillusioned with the policies of the IMF an� seeking an alternative. Since with the so-called "reform" policies of the InternationalMon­ the imposed privatizations were forced on the country three etary Fund (IMF) , which have been imposed on Ukraine years ago, Ukraine has lost 50% of its industrial capacity and since 1990. 30% of its agricultural outputLa staggering collapse. IMF In his speeches before a seminar of parliamentarians and policies, which favored specullation rather than production, elsewhere, LaRouche stressed the inevitability of the col­ also resulted in a brain-drain, similar to that which has oc­ lapse of the present global financial and monetary system, curred in Russia. Ukraine's scientists have either fled the and emphasized that apart from the effects of the looting country or are forced to work at jobs far below their qualifica­ policies carried out against eastern Europe by former British tions. Scientific endeavor is virtually shut down. As for the Prime Minister Margaret Thatcher and former U. S. President general population, poverty is now at levels that are "almost George Bush, which were intended to plunge the Comecon unbearable." Housing has been constricted, with families of countries as quickly as possible into developing-country con­ three generations living in less than 25 square meters. ditions, Ukraine was experiencing a reflection of the same Hence, policymakers are deeply concernedover the pros­ economic breakdown that is occurring in every part of the pect that any further privatizations of economic capacity will world economy, and that there is no successful economy in not only mean that Ukraine has lost its national sovereignty, any part of the world. but any continuation of such policies will plunge the popula­ A look at the political and economic crises facing leaders tion into Third World levels of poverty. Furthermore, Ukrai­ in countries throughout the world confirms LaRouche's as­ nian policymakers fear that the threatened privatization of the sessment. From Russia to Buenos Aires, from Pakistan to energy sector in Russia, and its likely political consequences, Nigeria, there is a growing realization on the part of leaders will pose a threat to Ukraine's national security. that the internal economic crisis experienced by their coun­ During his five days in Kiev, LaRouche, who has tries is not the fault of the country itself, as the international uniquely forecast the current collapse, addressed a seminar banking donors and IMF insist, but is, first, a product of a composed of a group of deputies of different parties, profes­ worldwide economic breakdown, and second, of the structur­ sors, and media; gave lectures at several universities, think­ al adjustment programs (SAP) of the IMF, which only wors­ tanks, and economic institut¢s, and gave a speech at the en the condition of the domestic economy and bring more Institute of Productive Forces, which had been created by the suffering to their populations. great Ukrainian scientist V.1. Vernadsky in 1919.

4 Economics EIR July 7, 1995 The shrinking of the physical economy, LaRouche em­ African Trade Unions (Cosatu), the union umbrella which phasized, is taking place in every country around the globe. functioned as a major base of support for the African National In the United States, average consumption of physical goods Congress, brought out nearly 500,0Q0 workers in a strike and the income of the labor force is today half of what it was action against the government's poUcies of privatization. 25 years ago (see Feature). At the same time, and spiralling "Public assets are not the private property of a particular out of control since 1987, there has been a vast expansion in party or government," Cosatu President John Gomono wrote financial aggregates per capita and the growth curve of these in calling for the strike, "but a heritage of the whole society. aggregates has now reached a hyperbolic character. In con­ They should be protected from unilateral action taken by trast to IMF policies, LaRouche posed the concept of his ruling parties." Attacking the onset of "Thatcher moneta­ 1990 program for a European Productive Triangle and ex­ rism" in South Africa, Gomono said currenteconomic poli­ tending landbridge for Eurasia, which would drastically up­ cies would lead to the lifting of trade barriers and establish­ grade infrastructure throughout central and eastern Europe, ment of cheap labor export processing zones. "Apart from as the only kind of program which can bootstrap the former the social problem created by privatization, it also has a poor Comecon economies out of their current collapse. record of creating jobs." As in Kiev, political leaders are now beginning to openly question the efficacy of IMF policies, which heretofore had Getting otTthe Titanic? been imposed on their governments without protest. Ac­ In Asian countries, where debate on IMF policies has cording to reliable sources, the failure of the IMF' s structural previously been muted, leaders are beginning to draw a line adjustment programs and the necessity for an alternative was against the Fund and its merciless constriction ofthe econo­ to be a major topic of discussion at theheads-of-state summit my. In a surprise move, Pakistani Prime Minister Benazir of the Organization of African Unity to take place on June Bhutto on June 15 publicly defied the IMP, whose policies 26. The summit was canceled after theassassina tion attempt Pakistan has dutifully followed since the 1970s, when Mah� against Egyptian President Hosni Mubarak. bubul Haq, current director of the United Nations Develop­ The failure of the IMF to meet any promises for easing ment Program, was Pakistan's finance minister and pressed the economic crisis of countries is a point of debate in many Pakistan into the IMP mold. Bhutto: reported to the press African countries. In Nigeria, the government of Gen. Sani that her government had debated whether to go for a tough Abacha came in with a program that drew the line against the budget-as demanded by the IMF-or ease the burden on IMF and imposed exchange controls. Now an open fight has the ordinary citizen. "It was decided that this year is a yearto emerged among the policymakers around on debt payments: breathe." Bhutto' s economic adviser V.A. Jafarey explained IfNigeria continues to pay its foreign debt-most of which is that "inflation would have gone up to 30% [from 13%] if we accumulated interest-then domestic investment will remain had implemented IMF conditionalities." Bhutto indicated, starved and the physical economy will continue its collapse according to Islamabad's The News, thatthere would be no (see article, p. 14). On June 10, in Nairobi, Kenyan Presi­ further currency devaluation and that funds for defense had dent Daniel Arap Moi told a rally of his ruling Kanu party been allocated to meet the country's security needs-'-also a that "henceforth the governmentwill not swallow wholesale slap in the face to IMF demands. all conditions of the structural adjustment programs that are In Manila, on June 22, a central bank official told a detrimental to the welfare of the common mwananchi [citi­ visiting IMF surveillance team that the Philippines would zen] ," reported the Daily Nation. Donors have called an withdraw from the IMP program if. the Fund insisted on extraordinary meeting for the end of July to discuss continua­ "unattainable targets. " The Philippines wants the IMF to ease tion of funds to Kenya. its monetary restrictions, and has stalledthat even if it goes In Ghana, a country put forward as an "IMF showcase" along with current IMF demands, this round of conditionali­ in West Africa, the government was forced to do an about­ ties is its "exit program" fromthe IMF. face on an IMP-demanded value-added tax, whose imposi­ And even in New Delhi, where IMF-dictated "reform" tion had raised the price on some necessities by 300%. The policies were met by some excitement over the last few years, tax led to a wave of demonstrations in Accra, with 50,000 the truth is beginning to come out. Poverty in India has been people marching through the capital in mid-May, the largest growing steadily at an annual rate of 1-2% since the 1990s, demonstration since independence. On June 9, Finance Min­ and now exceeds 40. 1 % of the population, economist Amita­ ister K wesi Botchwey told Parliament that the government va Mukherjee reported to a seminar'on June 27. Citing a was suspending the tax, since "matters have reached a point Planning Commission study soon to be published, Mukherjee where it is becoming increasingly difficult to enforce the said that reform policies had widened the inequities. While VAT law because staff from the V AT secretariat are met with overall poverty figures had steadily declined since the 1970s hostility wherever they go." and gone as low as 34. 1 % in the late: 1980s, the 1990s and IMF policy is also rapidly becoming the major issue of the start of liberalization policies haD reversed this trend, debate in South Africa. On June 19, the Congress of South with poverty now close to the level of44%.

ElK July 7, 1995 Economics 5 'Life after the death of the IMF' seminar held in Guadalajara

I by Valerie Rush

Nearly 200leaders of political, labor, and producer organiza­ stabilization plan for the Me�ican banking system, which, tions from Mexico met on June 16-17 in Guadalajara, Jalisco however, cannot be stabilized as long as the root causes to map out a strategy for reversing the disintegration of the of the endemic instability-speculation and usury-are not Mexican economy along the lines proposed by U. S. econo­ eliminated. The more these bC)J;rowed funds are poured into mist and statesman Lyndon H. LaRouche. the banking "sinkhole," the PJore the nation's productive The conference, convened by the Permanent Forum of apparatus-its agriCUltural and industrial sectors-are being Rural Producers (FPPR) and the lbero-American Solidarity looted to pay the debt, and the more the debt becomes un­ Movement (MSIA), was entitled "Yes, There Is Life After payable. the Death of the International Monetary Fund." It was the This "Mexican" crisis is being played out across lbero­ first of a series of such development conferences scheduled America, today most notably in Argentina and Brazil, mak­ across Mexico and other countries of lbero-America. The ing the example set by the GtJadalajara conference a model conferences are designed to put together a movement of for successor conferences across the entire continent-and workers and producers prepared to speak the truth about indeed for the world. It comes as no surprise, for example, the death of the international financial system, its free-trade that a national debate over the question of debt moratorium dogmas, and its genocidal institutions, such as the Interna­ is now dominating the pages Qf Argentina's newspapers (see tional Monetary Fund (IMF), and to counterpose a Hamilto­ article, p. 11). nian reorganization of current national and international fi­ nancial systems in order to revive national economic Identifying the cancer development. Jose Ramirez of the FPPRiopened the event by introduc- . The Guadalajara conference, held in the auditorium of ing the governor's representative and reading greetings from the Jalisco Industrialists Club, was attended by delegates farmers in the United States and from the Venezuelan Labor fromMexico City, and the states of Jalisco, Sonora, Michoa­ Federation, among others. Also read was a message of greet­ can, Chihuahua, Aguascalientes, Nuevo Le6n, and the state ings from MSIA chairman it Mexico Marivilia Carrasco, of Mexico. The governorof Jalisco, an important agricultural who explained that she could not be there in person because and industrial state which carries significant political weight she was on a related mission in Europe, accompanying two in the country, sent his personal representative to sit at the Mexican congressmen to expOse what is behind "Command­ dais on the opening night of the conference. Also attending er" Samuel Ruiz and the Zapatista insurgency (see article, were several municipal officials, a federal deputy from the p. 36). Mexico, said Carrascb, is being destroyed between opposition National Action Party, and representatives of nu­ the pincers of the IMF and the ethnic separatist uprising in merous other political organizations, including the PRI ruling Chiapas which, she stressed, are one and the same operation. party, a member of the state Executive Committee of the The first speaker was EIR's lbero-America editor Dennis Mexican Labor Federation (CTM), a leader of the sugar Small, who compared reacti<)ns to the current crisis of the workers union, the National Coordinator of Bank Users, the international monetary system to those of a patient with can­ National Catholic Party, and EI Barz6n, another farmers' cer. LaRouche has identifiedIthree distinct outlooks toward protest movement. this crisis, said Small. There are those who simply deny the In a press conference preceding the Guadalajara event, diagnosis, who declare they attjust nervous and need another MSIA leader Carlos Cota declared that their purpose was cigarette. These are the ones who would just expand the neither to support nor attack the government of Mexican speculative bubble. Then there are those who admit they are President ErnestoZedillo, but rather to pull together a politi­ sick, but insist they only have a cold and just need to take an cal force which can change current government policy, to­ aspirin. These, said Small, rure like some farmers in Sonora ward one which can guarantee development. The conference who demand only a fair prioe for their wheat, thank you, occurs at a moment of crisis in the Mexican economy, where "and none of those extremist proposals" from the LaRouche billions of borrowed dollarsare being poured into a so-called movement.

6 Economics EIR July 7, 1995 Then, there are those-like the FPPR-who recognize a leader of the FPPR since its incep�on. Miranda gave a that they are fighting a cancer, and who demand not only its presentation on the history of the organization, and explained surgical removal but measures to strengthen the body to resist why it and the Ibero-American SOli4arity Movement are it. Small hit especially hard at those who have refused to working together to form a "pole of a�ction" for workers, listen. In November 1993, he reminded the audience, he producers, and businessmen around the country who are had firstoutlined EIR ' s calculations of Mexico's real foreign ready to fight for national reform, aJIld not just local and debt-which were dramatically larger than the official fig­ partial solutions. We are facing a "national emergency," said ures-to a meeting of the Sonora FPPR. Today, everyone Miranda, and only those with the coura�e to "speak the truth" admits that his figures were correct, but, at the time, a huge will be able to lead the nation to recovery. It matters not if campaign was launched to discredit LaRouche and his influ­ the governmenthas rejected our proposals in the past, or even ence in the farm sector. Small pointed out that it was the rejects them now, he said. If we are not afraidto tell the truth U. S. embassy, in particular, which fostered the slanders that and present our programatic solutions Co the crisis, sooner or LaRouche was just a "foreigner" and a "criminal" who later the government will have no choice but to adopt them shouldn't be listened to. You can choose not to listen now and (see text, p. 9). pay the price, said Small, or you can work for LaRouche's Many questions were raised about where to go fromhere . exoneration and for the implementation of his full program The decision was made to immediately convoke a second while there is yet time. national conference, this one in Mexic� City, on July 21-22. Many around the world are listening closely to In answer to the question on how the Qlovement's proposals ' LaRouche. The influentialeconomist has just returnedto the are viewed outside of Mexico, EIR's Small urged that, in United States from trips to Russia, Poland, Ukraine, and order to stop the IMF, you have to get the world involved. Germany where he discussed his analysis and proposals with That, he said, requires the formation of an ecumenical move­ many who, like those at the Guadalajara event, agree that ment similar to the one that emerged against the United Na­ IMF policies are a disaster for their national economies. tion's Cairo conference on population last year. Small demonstrated how the latest "success story," that At the conclusion of the two-day conference, representa­ of Chile, is but one more example of looting a national econo­ tives of many of the organizations in attendance signed a my through usury. He presented his latest calculations, which manifesto which blamed the bankruptcy of the Mexican show that since 1973, while Chile's index of production of banking system, and the insolvency of the nation's produc­ producers goods rose by 35%, that of consumption goods tive sectors, on the chain-reaction collapse of the world mon­ dropped by 5% and that of infrastructure collapsed by 26%. etary system due to IMF policies of usury. It called for trying But over that same time period, Chile's foreign debt soared the IMF for crimes against humanity, for forgiveness of the by an astonishing 630% ! Thero-American debt as proposed by such moral leaders as Pope John Paul II, and for continent-wide integration "to put Mexican banks hooked on derivatives the economy through bankruptcy reorganization, and estab­ The MSIA' s Carlos Cota then presented a closeup of the lish a new international economic and financial framework Mexican banking crisis, showing how Mexico's banks are which will allow for economic recoveny, as well as develop­ not insolvent because of arrears by producers such as those ment of trade and cooperation among nations on a stable and in the audience, but because the banks are themselves indebt­ fair basis. " ed to the foreign derivatives market. You did not cause the crisis, Cota emphasized; the international monetary system did. Documentation The Mexican governmenthas already paid out nearly $7 billion to bail out the debt-bloated banks, and is planning to pour in another $3.3 billion, Cota said. Ten billion dollars is just what the governmentreceived for privatizing those banks 'Try the IMF for cr�mes just a few years ago! The government says that accepting a moratorium on farm debt would be "inflationary," Cota against humanity!' pointed out, and yet it has already gone into debt for many billions to bail out the banks. Where is the morality in a This manifesto was addressed "to the, People of Mexico; to policy that will allow an entire farm sector to go bankrupt the President of the Republic; to the National Congress; to that is needed to feed the nation's popUlation, and yet will the Judiciary." put its own oil wealth in hock to rescue banks riddled with the cancer of usury? As signators of this manifesto and participants in the First Also addressing the Guadalajara event was Jaime Miran­ National Forum: "There is Life Afterthe Death of the IMP," da Pelaez, a prominent farmer from Sonora who has been held in Guadalajara, Jalisco on Junel16 and 17, 1995, we

EIR July 7, 1995 Economics 7 affinn that the profound crisis afflicting [Mexico's] national which plays into the hands ot those degenerate interests of economy, expressed in the bankruptcy of its credit system London and Wall Street's financialoligarc hy. This oligarchy and the absolute insolvency of productive and consumer sec­ seeks to dismantle the nation-state through separatism, auto­ tors, is a product of the bankruptcy of the internationalfinan­ nomism or radical federalism, as seen in the case of the cial system, caused by the usurious policies of the Interna­ Zapatista National Liberation Anny (EZLN) and its allies. tional Monetary Fund (IMF). Only by breaking with ec<>nomic liberalism can we re­ This financial and monetary system threatens to destroy duce interest rates, apply a tatiff policy which protects our nation-states, the family as the moral and physical institution productive plant, resolve the problem of debt arrears, obtain of human reproduction, and human dignity. just prices for our products, m�intain growing public invest­ ment, and relieve debtors' generalized pain. TheBank of Mexico must besubordinate to the federalgov­ lfjusticeis to be served, thejoreign ernment, annulling the law which transfonned it into a mere debt qfMexicoand qfall qfIbero­ branch of the U.S. Federal Re�rve Bank. A healthy financial America, must bejorgiven, policy is only possible in a mercantilist, dirigist economy in as which the state's sovereign ability to generate credit can de­ proposed by prominent moral leaders velop basic infrastructure, industry, and agriculture . qfhumanity, His HolinessJohn Paul If justice is to be served, the foreign debt of Mexico and of all of Thero-America, musl1 be forgiven, as proposed by II in particular. prominent moral leaders of humanity, His Holiness John Paul II in particular. This is inot just because the debt is unpayable, but because it has already been paid. We are witnessing the collapse of the dogmas of econom­ In 1980, Ibero-America owed $257 billion. By 1993, ic liberalism, based on the gnostic theories of Adam Smith. $372 billion had already been paid, in interest alone; yet These have been brilliantly refuted by economist Lyndon H. today, it still owes more than $513 billion! LaRouche, Jr., who proposes a third way of global economic In 1980, Mexico owed $57 billion. By 1993, it had al­ recovery which is neither liberal nor statist. ready paid $118 billion (double that amount) in interestalone; The eradication of the "structures of sin" based on the and now, it owes $119 billion, not including the private debt, immoral theory which considers man a beast is therefore bringingthe total to $213 billiQn! imperative for the survival of nations. It is .imperative to Mexico must recognize the failure of the current world establish a new world order based on the principle that man monetary system. At thesame time, the Mexican government was created in the image and likeness of God, and is the must, together with other Ibero-American nations, promote repository of inalienable rights coherent with that condition regional integration to put the economy through bankruptcy of being different and superior to the beasts. reorganization. and establish a new international economic This principle above all asserts man's right to develop his and financial framework which will allow for economic re­ creative abilities in science, technology, classical art, and covery, as well as development of trade and cooperation culture, the true origin of the wealth of nations, sustainer of among nations on a stable and fair basis. a state of law in accordance with Natural Law and a sacred This new order must be based on a harmony of interests objective of every truly democratic system. within a community of nations, sustained by theecumenical This is not the time to lie. The liberal model created a principle of respectfor all religions and philosophies founded gigantic and cancerous speculative bubble which grows at on theprinciple that man is created in the image and likeness the expense of the assets of productive enterprises and the of God. physical economy in general. The destruction of agricultural In this ecumenical spirit, we calion patriotsof all nations activities in particular, with the resulting loss in productive to join efforts to demand a political trial of the International areas, is one of the primary causes of the planet's ecological Monetary Fund for crimes against humanity, on the basis of damage and climatic chaos, as well as of the four horsemen that principle established at the Nuremberg Trials that they of the Apocalypse-hunger, plague, war, and usury-who "knew or should have known'1 that their policies would lead have now reached the remotest comers of the globe, leaving to genocide. genocide in their wake. Signed: the Pennanent Forum of Rural Producers, the Although the entire human race is threatened, the first Cajeme Agricultural Credit Union, National Depositors Co­ victims are always the weakest sectors, as is the case with ordinating Committee (including 52 organizations), National Mexico's 12 Indian zones, where hellish levels of starvation Confederation of Small Industry, National Sugarworkers already exist. Union (Tala, Jalisco), National Citizen Council, National We energetically condemn any action which is based on Catholic Party, Western Journalists Union, Ibero-American the jacobin manipulation of popular rage-a manipulation Solidarity Movement

8 Economics EIR July 7, 1995 ment. Those meetings yielded a doc�ment which asserted that all of our activities are depressejd and headed toward a growth in debt and arrears. It wa$ also concluded that agricultural debt did not allow for a partial solution, but that what was needed were profound solutions that would positively and completely change all the variables that have Free us from insanity led to the decapitalization and indebtedness of the agricultur­ al sector. This in tum led us, in the same $tudy, to question the ' of free trade' government's entire economic polity and to propose a by Jaime Miranda Pelaez change in government economic strategy, which is based on the absurd dogma of so-called "comparative advantages," which presumes that it is cheaper to import grain and food This speech was given by Miranda PeLaez, leader of the oils than to produce them in our o�n country. Permanent Forum of Rural Producers, at a conference in On this basis, we prepared a series of proposals stemming Guadalajara, Jalisco on June 16. Subheads have been from the financial problem that this policy generated, and we added. documented the illegitimate growth of the agricultural debt, establishing the need for a moratorium on debt and arrears as We participated in convening this National Forum together a bridge toward a financial reorganization that would place with the .lbero-American Solidarity Movement (MSIA) be­ primary importance on the reactivation of the countryside cause we are fully convinced that it is a matter of national and of productive plant in general. security that the productive sectors mobilize with sufficient With this analysis and series of proposals, we have, since determination to create a correlationof forces that will enable 1992, been participating in a series of meetings in various the Executive branch to take courageous and bold decisions states of the republic. We have also encouraged mobiliza­ in breaking with the austerity conditions imposed by the tions by producers. In August 1993,! we held a tractorcade International Monetary Fund and foreign creditors. from Sonora's Ciudad Obreg6n to Guaymas port (Sonora), I would like to proceed from this premise in order to travelling some 120 kilometers in order to force an interview try to define-in accordance with our experience-what the with then-President Carlos Salinas de Gortari. We secured extraordinaryresponsibilities are that face the productivesec­ that interview, and in that private meeting, we read him a tors at this moment of crisis, a crisis which, as has been document in which we questioned the whole liberal economic demonstrated in the previous speeches, is neither Mexican, model and called on the President not to sign the North Amer­ nor conjunctural, but a structural crisis which is calling into ican Free Trade Agreement (NAFTA). question the very existence of the international financial Today we are involved in a new wave of mobilizations, system. and we currently have a picket line, with all our agricultural The reality which is being documented for us today poses equipment, surrounding the regional office of the Finance certain questions very clearly: Ministry of Ciudad Obreg6n. Will our nation, and nations in general, survive the immi­ nent collapse of the international financial system? Government stonewalling Will our government react in time by taking measures of But what I want to stress with this brief history is that protection to guarantee the existence of our country as a during all of these meetings and diScussions that we have sovereign nation? held with agencies of the agricultural sector and also with the I beiieve that the responsibility of the productive sectors business sector in general, we have met with a persistent must be located in our response to these questions. I also refusal to question the economic model and economic policy believe thatour brief but intense experience in the leadership of the government. of the Permanent Forum of Rural Produc�rs can provide us This was the problem we faced in late 1993, when we with certainmeans to conceptualize the serious responsibility participated in the national meeting of producers called by El we must currently assume. Barz6n, here in Guadalajara. At that meeting, the FPPR's The Permanent Forum of Rural Producers (FPPR) is a proposals were supported by the prodUcers, but the El Barz6n group that was started in the summer of 1992, when a group leadership refused to propose a debt moratorium or to ques­ of agricultural producers and analysts studying rural prob­ tion the government's overall econ�mic policy, using the lems in the Yaqui Valley-in southern Sonora state-held interesting argument that the role of the movement was only a series of meetings intended to formulate a more precise to urge the government to come up with solutions, but not to understanding of the national agricultural picture, with the propose what needed to be done. help of members of the lbero-American Solidarity Move- I am telling you this particular story only because it is

EIR July 7, 1995 Economics 9 illustrative of the kind of problem we face in defending which been making good and just proposals, and have been organiz­ way our movement has to go. ing mobilizations and so forth, but what will you achieve if You should all remember that since 1982, we were sub­ the government doesn't pay any attention?" jected to intense brainwashing to convince us that the cause Well, it is certainly true diat our achievement has not of all our ills was the existence of the State; through this been strictly material, but our strength and our moral author­ brainwashing we were made to accept an economic model ity have been growing to the ektent that the government has which defined the existence of the State as a structural evil refused to pay attention. Becapse it is growing increasingly that had to be dismantled, thereby criminally stripping our clear that the government's refusal to heed our proposals is own national economy of any protection. All this was done the cause of the national eco�omy's accelerated deteriora­ to the applause of the majority of Mexicans. Hurray, we tion, such that our apparent defeats will tum into the fount of shouted, finally we will get rid of this corrupt government! our greatest victory. ' Hurray for the "moral renewal" of Miguel de la Madrid! Today, we can see in this new wave of demonstrations Hurray for Salinas de Gortari who jailed La Quina [the falsely the formation of a movement of producers and businessmen imprisoned former petroleum workers leader Joaquin Her­ who are convinced that it is imperative to save the nation's nandez Galicia] ! productive plant from the irreQIediable financial collapse to­ ward which we are headed. A structural evil Now we have the deman

1 0 Economics EIR July 7, 1995 recommended grace period, funds normally allocated for Argentina payment of debt service should be used instead to "expand jobs and give credit to companies." 1'he problem of unem­ ployment "is sufficientlygrave as to signalthat we are living in a society in which work exists without the workers, and the economy without workers, and without people,"he said. Explaining that he was not expressing the views of the Debt moratorium Catholic Church as an institution, Father Musto nonetheless emphasized that. his words "are based on the teachings of callca uses furor Pope John Paul II on the issue of tIle foreign debt." In a subsequent interview with the daily Pagina 12, Musto added by Cynthia Rush and that while the country needs stability, "it shouldn't come Gerardo Teran Canal as a result of complying with International Monetary Fund demands, whether on the foreign debt or anything else." The thin-skinned Cavallo felt compelled to respond to When Father Osvaldo Musto told Radio Colonia on June 19 Father Musto personally, denouncing his call as irresponsible that Argentina's government should declare a debt moratori­ and warning that if implemented, a debt moratorium would um for one to two years, he placed the issues of national plunge Argentina into poverty, cut it off from foreign credit economic policy and solutions to Argentina's financialcrisis and destroy "investor confidence." He likened Musto to a at the center of national debate-right where Harvard-trained left-wing terrorist, who was scaring off investors with his Finance Minister Domingo Cavallo would prefer it not be. actions. Other free trade economists tried to dismiss Musto Cavallo is the chief architect of the 1991 "convertibility as just an unimportant parish priest, 'and even lied that the plan," which pegged the peso to the dollar in a one-to-one pope had never called for debt forgiveness. KissingerianTV relationship and is cited as the reason for Argentina's return commentator Mariano Grondona madeMusto's proposalthe to economic stability and acceptance by the international topic of his weekly television talk show on June 20, bringing banking community as a "reliable" country. But particularly in governmenteconomists and politicians to attack the work­ since the crisis triggered by Mexico's December 1994 peso er-priest. devaluation, the Argentine free-market "model" has foun­ But other church leaders counterattacked, not only offer­ dered, precisely as EIR predicted it would, and the uproar ing public support for Father Musto,; but elaborating on the provoked by father Musto's call underscores how precarious priest's accurate portrayal of the role of Cavallo's alma the country's alleged stability really is. mater, Harvard University, in producing the inhuman free­ The International Monetary Fund is fearful enough that market strategy that has destroyed every nation in which it Argentina won't be able to comply with the targets of its has been applied. Musto had told Grondona that "I didn't standby agreement, that it has taken the unprecedented step study at Harvard," where economists are trained in "facts of setting up a permanent office in Buenos Aires to more and figures . . . but I did study in Rdme, where concerns of closely monitor the government's progress. And many inter­ the heart"-that is, the plight of human beings-"come national bankers have expressed concern over the country's first." Msgr. Ramon Staffolani, the bishop of Rio Cuarto in ability to makeforeign debt payments. They point to the fact the province of Cordoba, told an interviewer on Radio Mitre that the only way that Cavallo could come up with the money on June 24 that most economists seem "to only come from to make payments due on June 30 was to postpone payment Harvard." But now, he said, it is time for the government to of salaries to state employees and of money owed to state listen to "others." suppliers. Some ask, if the governmenthad such difficulty in The June 24 Clar{n reported Iguazu Bishop Msgr. making payments in the range of $900 million for the first Joaquin Piiia'swarning that "we can 'It obey the International half of 1995, how will it make the $5 billion payment due in Monetary Fund at the expense of the people's hunger. " Msgr. the second half of 1995? Rafael Rey, president of the churcb' s Caritas agency and Especially nerve-wracking to local and foreign policy­ bishop of the diocese of zarate, told Clar{n that "sometimes makers is the frequency with which the name of U.S. econo­ we don't understand economics but we do understand peo­ mist Lyndon LaRouche, and his proposed solutions to the ple's pain, because we are close to them." Cavallo "is a good economic disintegration crisis, keeps cropping up inside the technician," he continued, "but something is missing. We country. Many commentators repeatedly use LaRouche's im­ can't just be concerned with number$." age of the world economy as a sinking Titanic to also describe the Argentine situation. Ferment grows Father Musto, the currenthead of the Labor Commission For President Carlos Menem an� Cavallo, this is not the of the Buenos Aires Archdiocese, proposed that during the opportunemoment for a national debate on economic policy.

EIR July 7, 1995 Economics 11 Despite an infusion of $7 billion in foreign credits to help prop up the banking system, the banks are essentially insol­ Brazil vent. More than $7 billion has fledthe system since January and the anticipated return of foreign investors has not oc­ curred. Moreover, almost all of Argentina's provinces are col­ lapsing under the weight of Cavallo's draconian austerity Virtual stability, regime. The delay in payment of wages and pensions to public employees in many provinces has provoked social protest and a situation that is ripe for manipulation by terror­ real disaster ists and provocateurs. In the politically and economically by Lorenzo Carrasco important province of C6rdoba, for example, the passage of an Economic Emergency Law on June 22 mandating harsh austerity and payment of $600 million in wages and At the completion of one year of its "monetary stability pro­ pensions to public employees with special provincial bonds gram," the government of Ftrnando Henrique Cardoso is led to two days of protest that tumed violent when members attempting to hide, with ad hoc economic indicators, the of the left-terrorist Patria Libre party infiltrated the demon­ disaster which is sweeping through the Brazilian economy. stration. The officialinflation indicator a--30% since July 1994-with Similar protests have occurred in the provinces of Salta, an alleged growth in Gross Domestic Product of 9.1 % in the Jujuy, Tucuman, Rio Negro, Tierra del Fuego, and Catamar­ last quarter, portray a numerical "virtual reality" very far ca. To govemors' pleas that the federal government assist from actual reality. I them economically, Cavallo has responded with the demand Throughout this year, and lin order to achieve this virtual that provinces immediately privatize their provincial banks stability, the government has .dopted three devices to "hold and other public companies, to generate needed funds. The down" inflation. The first was to overvalue the national finance minister told C6rdoba Gov. Eduardo Angeloz that currency, the Real, with respect to the dollar, provoking a the World Bank would be happy to provide him with funds, brutal breakdown in prices. This measure was implemented as soon as the governorprivatized the Bank of C6rdoba and . under the illusion that the country would be flooded, starting the provincial energy company, in 1995 , with foreign capital. lIn fact, up to December 1994 Signs of economic disintegration are everyWhere. In the the country had accumulated $43 billion in exchange re­ province of La Pampa, in the heart of Argentina's fertile serves. pampa hUmeda. farmers are auctioning off their agriCUltural Second, in order to keep on feeding the gluttony of the machinery and land, at prices one-third of their value, to usurious banks and to maintaip the influxof foreign capital, generate funds to pay their debts . Of the province's 10,000 interest rates were shot up to ithe stratosphere-the highest producers, 4,000 are in bankruptcy. interest rates in the world-after the Mexican crisis of Dec. According to the Argentine Federation of Chambers of 20, 1994. At present, the ba$ic rates which are applied to Commerce, at least 42,000 businesses have shut down this public securities, which servelas the reference for the entire year. The dramatic decline in sales in several key sectors national finance system, are between 50% and 60% annually of the economy tells the story. In May alone, sales of food in real terms. dropped 15%; medicines, 25%; textiles, 41%. The May Third, to keep up the pretext of near-zero inflation, in a drop in auto sales, one of the country's most importarit climate of absolute monetary I speculation, the government sectors, was estimated to be as high as 80%. Brazil's recent defined a basic market basket iat a level lower than the costs decision to establish quotas on auto imports, if kept in place, of production. To do this, it iadopted the insane policy of is expected to devastate Argentina's auto industry. The importing basic foodstuffs in �hich the country is self-suffi­ 70,000 vehicles Argentina had hoped to sell to Brazil during cient, thus artificially depressing prices. The same occurred the rest of 1995 will now drop to 12,000, according to in the shoe and textile industties, among other sectors. The industry experts . government similarly froze rates for public services, gas, Argentina's hope of offsetting its trade imbalance and telephones, electricity, and futl. preventing a worse recession by exporting large quantities of goods to the Brazilian market were also dashed on June Operation successful, patient dead 22 when the Cardoso governmentdevalued its currency, the This policy of self-dumping against domestic production real. This will make Argentine goods more expensive in indeed reduced inflation drathatically, from about 40% a comparison to Brazil's, and lower Argentina's export reve­ month to the present 2% levelJ a rate that only touches those nues at a time when it can least afford it. families living at the very limit of primary subsistence, who

12 Economics EIR July 7, 1995 spend 70% of their family budget for food and transportation. the sectors of shoes, clothing, wood', plastic products, and But even this apparent benefit will be temporary and will textiles in general. vanish when the effects of the depression and bankruptcy of Brazilian agriculture affect the future supplies of those The hemorrhage of cash resetves products. Meanwhile the high interest-rate policyis victimizing even Yet for the rest of the population, which consumes less government finances. Just in the firstfour months of 1995, the than 50% of their family budget on food and transportation, increase in the federal government's debt in securities rose by inflation is much higher than what the governmentrecogniz­ $10 billion and the debt of states and municipalities another $4 es. For example, apartment rents grew by 160% in the year billion. In other words, thispolicy is costing the public coffers of the Real plan, medical services by 70%, and school tu­ $3 billion a month, calculated on the basis of 4% monthlyinterest itions by 80-100%. In the face of this inflation, which the ad on a total internal debt, in January, of 75.3 billion Reals, ac­ hoc indicators of the government do not report, the popula­ cording to figuresof the EconomicsIns1!itute of thePublic Sector tion resorted to their only remaining source to keep up their (IESP). Thus in 1994, the public sector-Union, states, and living standards: personal debt and installment buying, which municipalities-spent $2.6 billion on interest payments. That cost as much as 18% a month in interest. is three times as much as is spent on health annually, in a The result of this process is the plain and simple bankrupt­ country where more than 40 million peoplesuffer from some cy of families. For example, the volume of bounced checks kind of endemic disease. Out of the total sum of this interest, in May was the highest in a decade, 1.4 million. Although $5.4 billion-I 0% of all tax revenues-"-isdedicated to paying this fell in the first 20 days of June, with more than 100,000 interest on internal debt each year. With these figures, the _ checks returned without funds, overall this is 370% more privatization of public companies is criminal, when the re­ than the same period last year, and a record in the banking sources that would be collected thereby, in the best of cases­ history of the country. Moreover, in Siio Paulo alone a mil­ for example Vale de Rio Doce-would barely sufficeto pay lion people stopped making any payments on loans this year. half a year's interest on debt. According to the Credit Protection Service, in the first 25 As to external $lccounts, the situation is no better. The days of June 138 ,000 new people filed for bankruptcy, a euphoria and self-sufficiencyof the governmentat the outset 245% increase over the same period last year. The govern­ of the year is shriveling up at the same rate as cash reserves ment and the banks, which are the usurers' partners, are are dwindling. In May, for the seventh month in a row, the very worried about the exponential rate of insolvency, which trade balance, despite increased customs duties, went into could cause the entire credit system to go bust. In fact, last the red for more than $600 million, and it would have been month, the central bank of Brazil carried out a sweeping even worse except that the government added the exports of intervention to save one of the biggest Brazilian banks. Ac­ the firstweek in June into the data. Losses of $5 billion were cording to some sources, this was Banco Economico, the accumulated during this period. So far this year, the deficit oldest in Brazil. has climbed to $3.492 billion. The June deficit alone will But the calamity is no less for the agricultural and indus­ probably reach $1 billion, which will make it impossiblefor trialproducers . The effect of astronomical interest rates, with the government to meet its goal of a $5 billion trade surplus depressed internalprice s, and in a climate of insane liberal­ for the year, needed to compensate the balance of payments ization of trade, checkmated the producers of basic farm and services which will register a deficit ofmore than $15 products, who will lose more than I billion Reals in subsidies billion this year. for the sake of the banks and the government's zero inflation. Given that the flow of foreign capital is still negative, The crisis is likewise pounding the shoe, textile, toy, and despite insane interest rates, the loss of reserves will go on. home appliance industries, as well as many others. In May, Since last December's financialexplosion in Mexico, Brazil SiioPaulo industry, according to figures of that state's Indus­ has so far lost this year more than $10 billion in reserves, trialists Federation (FIESP), laid off 10,000 workers. From leaving a total of about $30 billion. The most optimistic January to May, the number of preventive ("Chapter 11") expectations are that only $10 billion more will leave the bankruptcies went up by 411 %, and bankruptcies in general, country during the rest of the year on account of the balance by 70% over those same five months last year. Nonper­ of payments deficit. forming securities reached 1.2 million in that period, 84% All this obviously does not take into account the climate above the previous year. In May alone, 57 companies de­ of world financial instability. The crisis in Argentina, or the clared bankruptcy. rekindling of the Mexican bank crisis, could be the straw As a reflection of this situation, manufacturing activity, which breaks the camel's back of the I virtual reality by which according to the Brazilian Institute of Geography and Statis­ the governmentis masking its economic disaster. When this tics (IBGE), fell cumulatively by 4.4% from December to happens, the Cardoso governmentwill be revealed as decrepit April, with the largest declines, around 15%, reported in and crazed, in a modem version of theiportraitof Dorian Gray.

EIR July 7, 1995 Economics 13 Nigeria's policy debate rages at home and abroad by Uwe Friesecke

On June 27, the National Constitutional Conference in Nige­ doesn't solve anything," he declared. He challenged Nadeco ria presented the report of its deliberations to Head of State to say what they have achieved for Nigeria, and contrasted it Gen. Sani Abacha. He used this occasion in the capital city to what he and his colleages ijad done at the Constitutional of Abuja to announce the liftingof the ban on political activi­ Conference. Chief Ojukwu explained that he had gone to the ties, and said that'he would make public the government's national capital of Abuja for 1jhe Constitutional Conference plan for transition to civilian rule in October. This move to achieve a national compromise, which will not be perfect will significantlyundercut the worldwide activities of the so­ but will be the basis to preserv� peace and build the future of called democracy movement against the Nigerian gov­ the country. In contrast, he sald, Nadeco is engaged in pure ernment. nihilism and in fighting a w� of the past. Chief Oj ukwu Recently the National Democratic Coalition (Nadeco) assured the audience that he iii very confident, that most of had mobilized for a week of protestsand picketing in London the things the Constitutional Conference recommended will against the Nigerian government. This was countered by a be accepted by the governmen�of Gen. Sani Abacha. delegation of members of the Constitutional Conferencewho Chief Abiola Ogundokun closed the meeting, which by came to London to present the real picture of Nigeria's politi­ the time he spoke was already in an uproar, with a strong cal development. This delegation was led by Chief C.O. attack on TransAfrica, the grC!lup from New York which is Ojukwu, the former Biafran leader, and Chief Abiola Ogun­ calling for sanctions against Nigeria, and those prominent dokun from Nigeria's southwest. They were the invited Nigerians, such as Professor Akinyemi, Wole Soyinka, and speakers at a conference organized by the Nigerian Patriots General Akinrinade, who at QIle time or another were very on "Our Nigeria" on the evening of June 10, and they gave a close collaborators of military Jtegimesin Nigeria and who are press conference in London at the Cafe Royal on June 1 2. now hypocritically posing as the champions of democracy. Nadeco had chosen the week of June 1 2 in commemora­ At the press conference t\\Io days later, Prof. E.A. Opia tion of the annulled election two years ago, and they were from Delta State, also a prominent member of the Constitu­ not very happy to see prominent Nigerians fromthe National tional Conference, joined the group. Chief Ojukwu reempha­ Constitutional Conference there to present a different view sized that there was no alternatilveto dialogue and thatdemoc­ about Nigeria than their own. Nadeco resorted to a violent racy in Nigeria will only be built if Nigerians reacha national attempt to break up the evening meeting, and also rudely compromise first, which for him is the agreement on a rota­ disrupted the press conference two days later. Thus they tional presidency, which is one of the recommendations con­ showed quite clearly, that their tolerance of "democracy" tained in the report that the Omstitutional Conference pre­ only applies to those who are of their own opinion, but to no sented to the government on June 27. one who holds different views. During the course of the Professor Opia for his part madea passionate plea, that two events, it became quite clear that Nadeco was using the most important result of the conference was, that every­ professional tactics of disruption and provocation. While body from all parts of the country agreed to keep Nigeria they were able to create much commotion and also limited united. He also expressed hili optimism that the ideas of fistfights, Nadeco failed to break up the meeting or the press participation and power-sharirtg were well entrenched in the conference, which was largely due to the patience of the final draft of the report of the Constitutional Conference. organizers of the evening conference, the Nigerian Patriots, Asked whether the real reason for the attacks on Nigeria's and the forceful response of Chief Ojukwu, Chief Abiola current government were not the anti-InternationalMonetary Ogundokun, and the other speakers. Fund (IMF) orientation of its economic policy, Professor Especially Chief Ojukwu took the moral high ground in Opia declared emphatically that the government will never front of the audience, when he challenged his opponents to accept economic bondage, and he used the occasion to high­ drop their abuses. "I am not frightened. I have done every­ light the importance of the Pe�oleum Trust Fund for Nige­ thing in this world. I have had enough of violence and it ria's economic development. He rejected the often-voiced

14 Economics EIR July 7, 1995 embers of the National Constitutional Conference hold a press conference in London on June 12. to counteract the propaganda campaign of opponents of the Nigerian government. From right: Prof. E.A. Opia. Chief e.o. Oj ukwu. and Chief Abiola Ogundokun. criticism of this fund by the western financial press, and banking sector, including the uncontrolled freeing of the in­ commended the Abacha governmentfor having the courage terest rates and significantly increa�ed debt repayment to to use this fund to finally start rehabilitating infrastructure foreign creditors. throughout the country, especially in the rural areas. It is clear that a group of powerfu Nigerians, entrenched in the banking sector and in the affiliatesll of multinational cor­ Battle over IMF program porations such as Pepsi Cola Nigeria, who had pushed for the While certain political observers in London and Nigeria IMF's Structural Adjustment Program (SAP) back during the noticed with satisfaction that finallysome prominent Nigeri­ regime of Gen. Ibrahim Babangida, are exerting tremendous ans have gone to Europe and to combat the propaganda offen­ pressure on General Abacha to go back to IMF-World Bank sive of Nadeco in public, at home, in Nigeria, the debate policies. They are hystericallydenying the reality of all those about the future economic course of the government contin­ examples outside Nigeria, such as �exico, Russia, and nu­ ued even more pointedly. The context for this was the visit merous African countries, where the IMF-World Bank policy of an IMF-World Bank team at the end of May. According to has already led to disaster. Unfortunately, this group has sup­ Reuters, the chairman of the National Economic Intelligence port in certain comers of the Nigerian political elite, who do Committee (NEIC), Prof. Sam Aluko, wrote a letter to the not care if they sell out their country and destroy the livelihood minister of finance and the governor of the Central Bank of of Nigeria's people, if they only can enrich themselves. Nigeria, expressing his deepest concern over the danger of But some political observers point to the irony that those making any more compromises with those international fi­ people who are desperately lobbying for compromises with nancial institutions. According to Reuters, the NEIC criti­ the IMF, will soon find that the IMF and the World Bank one cizes, in particular, the sharp devaluation of Nigeria's curren­ day will simply not be around any longer, because they have cy, the naira, from 22 to the dollar in 1994 to 80-82 in gone bankrupt and were buried under the collapsing world 1995 , which in their opinion has been responsible for the monetary system. After the success of the Constitutional pauperization of the majority of Nigerians and the collapse Conference, General Abacha, who won his credibility with of any productive activity in the country . the way he allowed the conference to operate, is in a stronger During the IMF's team visit to the country, Abuja was position than ever. Hopes and expectations for the transition­ rife with rumors that they had demanded much more far­ al process are high. The danger of thb months ahead is, that reaching compromises from the Abacha government, such if the economy declines further and the deterioration of living as further devaluation of the naira; another increase in the conditions becomes unbearable for the people, the political prices of petroleum, kerosene, and diesel; removal of the gains of the last 18 month could be shattered. One hopesthat subsidy on fertilizers; removal of the official exchange rate the governmentwill now use its posiilionof strength to effect of 22 naira to the dollar; and unlimited liberalization of the visible improvements in the econom� of the country.

EIR July 7, 1995 Economics 15 whole question of transferof wer. This has dogged Nigeria Interview: Chief C.O. Oj ukwu ever since independence: hoJ, to peacefully, at the end of your mandate, hand over powl r to your successor? We have in that regard decided on a tational form of Presidency, where one side of Nigeria, e half of Nigeria, would rule at one time, then be succeed� by the other side of Nigeria, with no geographical group s cceeding itself. We have also set up a Constitutional Court !whose task will be constantly We have achieved to focus its attention on the I Constitution and the Bill of Rights of our Nigerian citize�s. We have tried, in all our various recommendations, t� make our own suggestions a national compromise justiciable, so that the citizen Icertainly has concrete actions he can take to rectify a si tion where power has been This interview was conducted with Chief Ojukwu in London abused. �I on June 11. A delegate to Nigeria's National Constitutional We have lookedupon OU venue generation and alloca­ Conference. Chief Oj ukwu was the military leader of the tion, and we have given more mphasis to areasof derivation 1967 Biafra War. For a previous interview with him, see for revenue. We feel one of e points of friction in Nigeria EIR, Dec. p. is a situation in which areasi fi d themselves to be a national 16, 1994, 58. cow, which somebody else ilks. We have suggested a EIR: You have been a member of the Constitutional Con­ minimum percentage of any £venue accruing to the federa­ ference in Nigeria, which has just concluded its delibera­ tion that must be granted ba k to the areas of generation tions. Could you tell us about the results of this conference, and extraction. These are concrete steps. We have also what is your judgment about its success? recommended that schools anelthe entire educational system Ojukwu: It is somewhat premature for me to start giving be given down to the stateS, so that nobody can blame results at this point in time, because we actually went in to anybody else for any failure in education. There are so many draft a Constitution. We have drafted one, which is being innovations we have made. But I must underline this, that printed now, and we are going to present it to the govern­ I do not believe these are perfect solutions. But these are ment. Naturally it would be after that, that we would be solutions that will prevent cohftict at this time. able to tell you the results, because we have no executive powers, we only can make recommendations to the gov­ EIR: There were lots of dis¢ussions that the exit date for ernment. the military, which the conference demanded, was changed. As far as the work itself is concerned,I am quite satisfied What is the substance of this debate and why was the date that a great deal of work has been done. I am satisfied that changed? this conference started and ended in Nigeria-with the state Ojukwu: Let's make no mistake about this. I personally of things, that in itself is an achievement. Then I am satisfied, felt that at the time the date Jan. 1, 1996 was decided upon, looking generally over the points that have been raised and it was feasible. The Constitutional Conference dragged on the various things we have said. We have not got a perfect and we are now in June; we have not submitted the report solution and in any case nobody can pretend that it is only to the government. It became in itself very unrealistic to our generation that has a monopoly of wisdom for Nigeria. keep to the date Jan. 1, 1996. That notwithstanding I still What we have produced is at best, I think, a national compro­ believe-I mean aforce majeure could intervene, if tomor­ mise. Something that will keep Nigeria together, enable us row somebody got onto the radio and started martial music to live together and make progress. At the same time, it is again, and "fellow countrymen and women"-it is true that a document that will enable future generations to better what it could change; but we wil) just be going around in the we have produced. We do not expect a rigid, firm, perfect same old vicious circle. Whatlwe looked at was the practica­ solution. It would be wrong for anybody to think in those bility for peaceful change, that would give us a greater terms. chance of stability. And we tHen decided, actually, contrary to what everybody is saying. In the body of our recommenda­ EIR: Could you mention some of the concrete points that tions is the suggestion (recommendation) that the military you think were achieved in your deliberations? government would relinquish! power in 18 to 24 months at Oj ukwu: Again, achievement is saying too much. We re­ most after the report has been presented. That is actually solved during the conference that Nigeria would remain one. the fact of the day. But we accepted that there are difficulties to that oneness. We then went ahead to design a situation, particularly the EIR: How confident are you, that the recommendations of

16 Economics EIR July 7, 1995 the Constitutional Conference will be accepted by the mili­ tary government? Ojukwu: A lot of people, when they say military govern­ ment, don't give them any nuances and don't give them any color or anything. I am talking now about the Abacha mili­ tary government, the one I know, the one we are now working with. I feel very confident about that particular military government. Should anything-God forbid-inter­ vene before, then one would have to reconsider, review, and reappraise the situation. But from every indication and everything I have seen from my interaction with this particu­ lar government, I don't believe they will tinker with the recommendations. It will probably be dotting some i's and crossing some t's. For example, there was a recommendation that the Nigerian Army should be not more than 50,000 strong; that was the recommendation of the majority. I re­ member that my comment was quite clearly that that was almost treasonable, that you don't announce the size of your army in that form. And I am pretty certain that this will not be reflected. I hope it will not be reflected in action. I think we should, like every nation, look upon matters of defense generally always based on our needs, real needs. Today it might be nigh zero; tomorrow it might be a 100,000.

EIR: In the history of states, there have always been politi­ cal classes, civilians who have done a lot of damage to the political process. I think also in Nigeria there are examples Chief C. O. Oj ukwu: "Betweenyou and , we are sure that we in which civilians can be blamed for the misfortune of the need certainly fa r more irrigation than machine-guns. I believe country. Do you see a danger that once the process of the anything that can bring about roundtable discussions is infinitely political debate and the formation of political parties start, better than the alternative, which is strife and bloodshed." that what has been achieved could be lost in the excitement of the renewed political debate on that level? it has been said the civilians ruled, there is absolutely no Ojukwu: Very often one takes this whole business of na­ justification for the military to take over. Yes, I expect, given tion-building as something you do in a classroom. You take the two years maximum that the Constitutional Conference an exam, and you pass or you fail-that sort of thing. I suggested, the chances are better thaJ average that the transi­ don't know. What I see is that a chance very soon will be tion will take place more or less smoothly. Now that we given again for civilianizing the governance of Nigeria. I raise this point, I have my own pet notion. One of the use the term "civilianizing" mainly to draw a distinction problems we have in Nigeria is that you always know the between the type of government we have now--everybody date of the national elections before )louform political parti­ calls it military, but it is only military insofar as the final es. That makes you clearly get a wliole lot of conspirators decision is taken by the military boss. But the entire appara­ who get together. You don't get politicians together. We tus of governance has civilians almost exclusively, except have been doing this, and it's a mistake we have been making again where you have a provisional ruling council. After regularly. I would have preferred a situation where, all the the presentation of our report, there will certainly be a rat time the military is in place, we should have political parties race; the politicians will all be around, trampling across the going through our various internal elections and selection land in search of votes. There will be an appearance of before . Then the politicians and their parties are fitfor pre­ confusion, because there will be a great deal of activity. I sentation. I use the term "fit for presentation" in a general don't think anybody really has the right to say "halt," be­ context, because there is nobody, and the only way you can cause we have opted for a democratic system. We have judge a political party is, can it w·n an election or not? opted to allow all shades of opinion. We have to try them There is nothing else. I believe personally, when there is out. If there is confusion, I don't think this is any reason confusion, we should go ahead, and still get a government for the process to stop. of civilians, no matter how imperfec that governmentmight It is in fact the same reason why, no matter how badly later appear.

EIR July 7, 1995 Economics 17 EIR: There recently has been a IQt Qf cQverage Qf OgQni­ 13% Qf the natiQnal product, the natiQn's product. But that land. CQuld yQU CQmment Qn whether there is a problem is as a result Qf bad gQvernance. there, is it being handled right, and what shQuld be dQne? What we shQuld do, is to, diversify so, that every Qther Ojukwu: To,understand the problem, Qne shQuld go, a little persQn prQduces sQmething, so, that we export frQm every bit mQre backwardin Qur histQry . The situatiQn we are trying Qther area, so, that we have a ,diversified mode Qf getting to, deal with is residual, residual frQm cQIQnialism. The fQreign exchange and hard currency. But even if it is a bit OgQni problem derives cQmpletely from Qur CQntact with too much, even if it were, I say, it is a fee WQrth paying imperial Britain. The OgQni peQple never at any pointchQse fQr peace. I am prepared to, go, by it. to, be part Qf Nigeria-they happen to, be. We have inherited Then we talk also, a IQt here abQut peQple in detentiQn. Nigeria, and they findthemselves in it, Qkay. ExpropriatiQn Yes, there are peQple detainedl Any cQuntry in the WQrld, Qf land? No,; no, Nigerian gQvernment expropriated any land any gQvernment,has every righ. to,maintain peaceand Qrder. frQm the OgQni peQple. By the time the Nigerians held the In PQlitics, like any Qther jQb, there are occupatiQnal hazards, executive and were responsible fQr Nigeria, the sQ-called there are lines drawn, every game has its rules and regula­ exprQpriatiQn had taken place. It was part Qf the infrastruc­ tiQns. If yQU step Qver the mark, yQU get penalized. If yQU ture Qf the imperial PQwer fQr the explQitatiQn Qf Nigeria. go, beyQnd nQrmal political a�tatiQn and go, into, treasQn, I think it is always necessary fQr people to, understand th�t yQU have YQurself to,blame . If you cQmmit arsQnand murder, basic fact. What we are dQing as politicians today, is trying yQU have yQurself to, blame. At that point it ceases to, be' to, rectify SQme Qf the wrQngs Qf the past. political, it becQmes criminal. l was watching Qn the televi­ The OgQni prQblem is no, different frQm the prQblem siQn this afternoon the W Qrld I Cup rugby. It seemed very that nQW is called in histQry the Biafran problem. It is Qur Qrderly. But if sQmebody suddenly started playing soccer variQUS natiQnal grQupings trying to, live with the fact Qf a Qn the rugby field, than there WQuld be chaQs. modern agglQmerate state, a new natiQn being fQrmed Qut So, I believe that the OgQnil problem-which actually is Qf very many. I do, nQt believe that this problem is unique. a painful Qne, where I personally see peQple who, have When I went to, the CQnstitutiQnal CQnference, I said Qn the suffered greatly-isbeing addressed. And all we need at the floor Qf the hQuse, that actually we shQuld IQQk upon Qur­ mQment is, to, give the CQnstitutiQnal CQnference a chance to, selves as delegates to, a general peace cQnference, where we finish Qff its jQb, present its report, and we try and make sit tQgether with all the variQUS injustices that we have all sure that the gQvernment does nQt interfere with the report. experienced, Qne way Qr the Qther, and try to, irQn them Qut Because as it stands today, the OgQni peQple are gQing to, in this peace cQnference, and try to, get Qut Qf it a document, be very rich. We, the Qthers will definitely get jealQus Qf a peace treaty fQr Nigeria, that we hQpe will then stand the them. That much I knQw. If th�y WQuld only use that mQney test Qf time. NQw, if Qne sees it that way, yQU can nQt iSQlate fQr their Qwn develQpment. I warntha t if they dQn't, chaQs Qne problem and say "this is the problem." will cQntinue. But it will nQt b¢ because Qf the gQvernment; The Qther thing I fQund Qn cQming to, LondQn is that it will be because Qf their Qwn:peQple's inability to, manage everybody has nQW begun even to, twist histQry. There is what the natiQn cQnsiders rightfully theirs. the political prQblem Qf OgQniland. There is no, dQubt abQut that. In the CQnstitutiQnal CQnference, we have tried to, EIR: Y QU called the CQnstitutionalCQnference apeace CQn­ address it, because we think it is quite fundamental. YQU ference fQr Nigeria. YQU think it CQuld be a model fQr peQple can never be cQntented, if yQU are living in a place where to, learn sQmething fQr Qther brutal cQnflicts in Qther parts every day the Qil frQm under yQur land is being siphQned Qf Africa? Qut, where yQU have no, post Qffices, yQU have no, roads, Oj ukwu: I believe there is no,Illternative to, dialQgue . There yQU have no, electricity, and yQur lifestyle hasn't changed are too many peQple who,make their mQney and their wealth fQr the past 50 years. Y QU are bQund to, resent it. We IQQked as merchants Qf death. In Africa, we are essentially disad­ at this and we fQund that, Qnly recently, the percentage Qf vantaged by nature, sickness, and so,Qn , and we dQn't have funds derived frQm Qil which is taken from the area that is to, add cQnflict to, it. We hav¢ famine, and when yQU are plQughed back in develQpment to, that area, was increased fighting, certainly yQU CannQtl cultivate. Between yQU and to, 3% Qf the tQtal. We felt that this was nQt fair. After me, we are sure that we need: certainly far mQre irrigatiQn deliberating, we said, the derivatiQn-and this is across the than machine-guns. I believe anything that can bring about board-whatever is produced frQm yQur area, shQuld be set roundtable discussiQns is infinitelybetter than the alternative minimally at 13%. We said it shQuld be 13%. I knQW that which is strife and bloodshed. I When yQU say "model," yQU some peQple still think that 13% is too much, because in a nQtice I hesitate. I dQn't like tq think Qf what I have partici­ situatiQn where, foolishly, the Qnly effQrt we makeeCQnQmi­ pated in being the mQdel; nQ� it is a way fQrward, and I cally is selling Qil, it seems that giving 13% to, an area Qf think the real sQlutiQn fQr Afrita will be fQund in thatdirec­ derivatiQn WQuld mean in fact that they WQuld be getting tiQn rather than the QPposite

18 EcQnQmics EIR July 7, 1995 Evans-Pritchard wrote in the May 2. London Sunday Tele­ graph. Evans-Pritchard, a British intelligence brat, was the journalist who began the "Whitewater scandal" attacks on British fan trade war President Clinton. "Trade war could easily blow up1' in President Clinton's face, he wrote, by causing a collap� of the U.S. Treasury against Japan, Clinton and currency markets. "The Bank of Japan is helping to prop up the U. S. bond market, soaking up, a third of all debt being by Kathy Wolfe issued by the U.S. government. If DOJ officials failto tum up at a Treasury auction one week, there could be panic in When an agreement was reached in Washington on June 28 the financial markets.. .. to avert trade war between the United States and Japan, it set The "Japanese-American relatiolllship is one of 'Mutual back a British plot against both nations which is being flaunt­ Assured Destruction' (MAD), to borrow an expressionfrom ed in the British media. British spokesmen openly predicted the Cold War," he crowed. "If one side launches a missile, that Japan's financial system faces a 1927-style crash, and both sides go up in smoke ....It is clear that the Clinton that U.S. President Bill Clinton would be destroyed by this. White House does not have any natural feel for what is happen­ This was all supposed to come as a resultof the May 16 threat ing in Japan. Christopher Whelan, a former Federal Reserve of $6 billion in U.S. sanctions against Japanese auto imports official who now edits Washington and Wall Street Review, into the United States. warnsthat Tokyo has turnedinto a 'financial black hole. ' ... The London Economist on June 17 in a lead editorial "It is a dangerous process of deflation that can easily fly wrote: "The depth of Japan's financial troubles is the worst out of control, much as monetary implosion fed on itself in the world. . . . The scariestfo recasts"are about to "come during the Great Depression. The Japanese banks-the big­ true.. ..Consider the scale of Japan's financialmess . Even gest in the world-are only a few steps away fromthe abyss." the upwardly mobile official figures which understate the Former London Economist d�puty editor Norman problem look terrifying. Last week, the government put bad Macrae also wrote in the London Sunday Times on May 14: debts in the banking system at Y 40 trillion ($475 billion). "Some time in 1995-97, I expect a Wall Street crash" as a That is equivalent to 10% of GDP. . . . The toll of bad debt result of Washington imposing "huge anti-Japan tariffs to mounts." The Tokyo stock market will crash and bring down 'protect' America." The "ham-handed" Clinton will be Japan's major banks; "the abyss looms." blamed, Macrae predicted, and "America will choose a Re­ Ofcour se, it is London which is the world's worst finan­ publican President." cial mess, given the public collapse of Barings and the crises Indeed, the trade sanctions annomcement by U.S. Trade in Hambros, Lloyd's insurance, and other pillars of the Em­ Representative Mickey Kantor came at the worst time, just pire. Besides, for the "authoritative" Economistto "predict" a when President Clinton needs to work most closely with crash, is wildly irreponsible. The editors know that financial Japan. Clinton's pressingchallenge is the need for the United managers globally will sell and dump on their advice. States to take the lead in putting through a general bankruptcy The Economist blamed President Clinton for the entire reorganization of the world's money and financial system. disaster. "American policy is adding to the risk that [Japan's] Japanese Finance Minister Masayoshi Takemura has been economy will crash ....Clinton is making things worse," calling for the United States to act ;vith Japan to "rethink" they conclude. "The persistent threat that quarrelsover trade the world monetary system. will escalate is unsettling markets already nervous ....In It was Maggie Thatcher's boy George Bush who launched his econonomic policy toward Japan, Mr. Clinton is dicing trade economic warfare againstJapani South Korea, and other with disaster. And for what?" nations, as signaled by a September 1989 Los Angeles address by Bush's CIA chief William Webster. Webster stated that Consistent British theme successful economies such as Japan, South Korea,arid Ger­ London, and not Washington, is trying to cause a finan­ many were no longer American allies� but, with the fall of the cial collapse in Tokyo. The London Times on June 20, in a U.S.S.R., "now represent, in effect, a new enemy image." biography of the new governorof the Bank of Japan, Yasuo Federal Reserve Chairman Alanl Greenspan, who hails Matsushita, concluded as did the Economist: "What Japan from the British-owned Morgan B�k, is also fueling the needs is a really big bankruptcy and a run on the banks so U.S.-Japan feud, George Friedman, �uthor of "The Coming large and so shocking that it will give the authorities the War with Japan," told EIR on April tl. "Greenspan doesn't excuse aggressively to reinflatethe economy." give a damn how much trouble he ca,UsesClinton . He views U.S. pressure on the bankrupt Japanese banks could that as yet another benefit;he hates dlinton' s guts. He wants cause a new Great Depression, British reporter Ambrose to cause him a big proble�."

EIR July 7, 1995 Economics 19 A proposalto makeArm enia into Eurasia's economic crossroaps by Rouben Yegorian andMarina Hovhanissian

Rouben Yegorian is director of the Department of Territorial of north-south and east-west axes of internationallinks , at 40° and Prospective Development, in the Armenian Ministry of latitude and 45° longitude. The east-west axis is the historical Construction; Marina Hovhanissian is Chief Researcher at Great Silk Road. The north-south axis is the link between the State Museum of History of Armenia, in Yerevan, the Russia and Europe's southern iSeashores, the Middle East, capital of Armenia. and India, which during the past�centuries served as an impor­ tant direction for internationali cultural , technological, and 1. Economic developments into the 21st century trade ties. Global economic relations were redefined following the On the other hand, within I the area in and around the collapse of the Soviet Union, the emergence of the indepen­ Transcaucasus, Armenia, because of its geographical posi­ dent countries of East Europe and the former Soviet Union, tion, historical role , and its inijtiative, is regarded advanta­ and the fall of the Berlin Wall. geously as an economic mediatpr between Europe and Cen­ The development of democratic and market forces in tral Asia; Europe, Russia, and the Middle East; the region's the countries of the former Soviet bloc, began to become a north and south, east and west; and Christian and Islamic guarantee for the avoidance of regional conflicts and new peoples. global catastrophes. At the same time, it was realized that the wide-ranging processes of regional and global economic 3. Program Crossroads �Khachmeruk) integration could become durable guarantees for stability re­ Taking into account the aboive, the Ministryof Construc­ gionally and in the world. tion, based on the findingsof th.s report, presented "Program Thus, various tendencies are appearing as the world en­ Crossroads" to the Ministry of Rconomy in 1993. The Minis­ ters the 21st century: the creation of a Eurasian economic tryof Economy rated and presepted this project as a national space, as well as the integration of local and regional conflict project in 1994. Today, this prc)gram is viewed as an impor­ areas (for example, the Caucasus and Central Asia) into the tant project for Armenia at the state level. wider political environment. Presently this program is undergoing a thorough technical During the creation of a unifiedEurasian economic space and economic analysis. Armeniian specialists are in need of and the integration of local regions into the global market technical assistance from the : international community to economy, there will be a range of new central issues, such as complete the relevant studies. : the development of integrated communications infrastruc­ The core of Program Cross�ads is the realization of inter­ ture , the free movement of labor, capital, and goods, and national transport corridors through Armenia. These corri­ related issues. dors consist of roads and/or railroads linking the transporta­ The most important conceptual elements in the creation tion networks of Eurasia, the Transcaucasus, and the of the integrated communications, transport, and energy in­ surrounding region. These co�dors can be used to bring frastructure will be the paths and directions of the new "Silk goods and people from Russia and Europe to the Middle East Road," including the construction of gas and oil pipelines, and Asian countries, and vice versa. road and rail lines; and those mediator-buffer countries lo­ At the same time, Program. Crossroads will benefit the cated at the "intersections" of these infrastructure links. development process within A�enia, and organically inte­ grate the Armenian transportatton network into the regional 2. The role of Armenia in the process of and global transportation networks. economic integration in Eurasia, the The local Armenian tranSpOrtation network, with its ori­ Transcaucasus, and its surrounding region gin in the transportation network of the former Soviet Union, Armenia can play an important role in the process of fulfilledthat economic space's domestic and foreign linkage integration of the Transcaucasus within the wider region, and needs. Transport links for Armenia have become essential the creation of the Eurasian economic space. after the collapse of the Soviet Union: When Armenia found On the one hand, Armenia is located at the intersection itself in an environment definecll by new relations, when Ar-

20 Economics ElK July 7, 1995 ....trl ::e Proposed Khachmeruk and other Armenian transport corridors

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"< � o� ::l )\ o --117"-- o2_ Proposed khachmeruk (partly existing. partly new link) 1- -··-If--t--·--_·- <-I - '" A I, N . ..,. N Existi lines - - - - Proposed railway lines menia strove to establish good neighborly relations and to To the north: Batumi, Black Sea, Tbilisi. Moscow; and initiate new economic cooperation with its neighboring Georgia, Russia, Ukraine, Baltic states and other cities of states, and when the emergence of a nationally definedpolicy the region. of domestic regional development became essential. To the south: Tabriz, Teheqm, Ahvaz, Persian Gulf and Thus, Program Crossroads serves two functions: to re­ Kuwait, Baghdad, Aleppo, Beilrut, Amman, Tel Aviv, and build the domestic transportationnetwork of Armenia, which many cities of the Middle East. is dictated by new conditions; and to serve as an important To the west: Ankara, Athens. Sofia, Bucharest, Bel­ element in the integration of the Transcaucasus and its sur­ grade, Budapest, Warsaw, Vienna, Prague, Berlin, Munich, rounding region, and of Eurasia in general . and other cities of Europe. : To the east: Kelbajar, MaIttakert, Baku, Caspian Sea, 3.1. Road network Krasnovodsk, other cities of Azj;:rbaijanand Central Asia, as The following can be observedin the accompanying map: well as the roads leading to Rus.ia, the Far East, and Central the harmonized and linked development of Yerevan and its Asia. surroundings, the Araratian plain, the earthquake zone, Combined transportation through Black Sea shipping Sevan basin and the remaining parts of Armenia which will lines provide additional alternative links to the overall trans­ serve to maintain an equitable, national standard of living; port corridors . the use of Armenia's geographical position as a crossroad in This particular solution tob ! e problem of the Armenia's economic integration; and the two highway axes which will international ties, during this period of differing relations link Armenia to the outside world, which are drawn north­ with Armenia's neighbors, will; on the one hand, encourage south (coming out to Georgia and Iran) and east-west (com­ the possibility for greater internll.tional economic integration, ing out to Turkey and Azerbaijan). and on the other hand, in th� Caucasus, will establish a The north-south path is traced via: Georgia, Tashir, Ste­ balance of economic interests .,etween Russia, United States, panavan, Pushkinian Pass (tunnel), Vanadzor, Dilijan tun­ Europe , Turkey, Iran, and other countries. The construction nel, Sevan, Kamo, Martuni, Yeghegnadzor, Saravan, Si­ of these two motorway axes imposes certain engineering sian, Vorodan, Darpas,tunnel under Bargushanian mountain demands required of international transit highways: chain, Musalam, tunnel under Meghri mountain chain, Mar­ • The roads must be of high technological standards, to alzami, Vahravar tunnel, Guris, Garjevan, Akarag , Iran. ensure maximum speed and safety . The length of this path is 465 kilometers: 210 km from • Resistance to varying and different climatic conditions the Georgian border to Martuni and 255 km from Martuni to and belts . the Iranian border. • Bypassing of population �enters . The west-east directionis traced via: Turkey, the interna­ • The inclusion of technol�gically complex engineering tional border located between the villages of Pakaran and projects (bridges, tunnels, jUnctions and exits, varying Yerbantashat, Arax River bank, AkhurianRiver bank, Len­ slopes, etc .) and associated in1!rastructure components (gas oghi, Hoktemberian, Akarag , Ashtarakjunction, bridge over stations, food stations, hotels, service stations, customs Hrazdan River, Arzni, Geghart, tunnel under Geghama houses, etc.). mountains, Martuni, Vardenis, Sodk, tunnel (4+4 kms) Martakert, Azerbaijan (roughly 320 km within Armenia). 3.2. Railroad network The west-east path can be alternatively realized more inex­ The railroad network in Artnenia is linked to the neigh­ pensively if the existing Sevan-Yerevan highway was used, boring countries. The conditioJ!1 of the network is neverthe­ with the requiredreparations and changes. less not good; most of it dates from the start of the century, Within Armenia, these motorways bypass population and as it has not been properly maintained during the last five centers by 2-4 km. The intersection of these two motorways years. , lies near the town of Martuni (in the less costly alternative, The existing railroads provijde an alternativefor the real­ the intersection near Sevan) which, during the utilization of ization of parts of Khachmenilk, till its development and these motorways, will become the most active trading city in especially for heavy and bulky koods transport. the country. An immediate north-south : axis can be created through Domestically, these two roads will comprise Armenia's the realization of the new link t>ttweenGioumri, Ahalkalaki, two shortest and most effective land routes linking the popu­ and Akhaltsikhe in Georgia, and by using the existing line lations of the north to the south, and of the east to the west, southwards, through Massis and Eraksh towards Nakhichev­ as well as linking populations in neighboring countries-all an and Iran . of which will benefitthe transportof goods and passengers. An immediate connection t() the west can be also materi­ These four-lane motorways are important for the pur­ alized through the line from Gioumri-Ahurian to Turkey. poses of international integration, since they will link to the Through the Turkish railroad network, goods may be trans­ road network of neighboring countries; more particularly: ported to and from the Middle East, and of course to and

22 Economics ElK July 7, 1995 from Europe . In addition, if a new link is provided between Vanadzor and Dilijan, it is possible to conceive an immediate urre link eastwards, through Idjevan and Sotoulou to the Azerbai­ C ncy Rates jan railway network. The dollar in deutschemarkS Given the well-developed railroad infrastructure in the New Yorklate afternoon ftxInc former U ;S.S.R. and neighboring countries, it is agreed that railroads provide a sound complementary mode (although not , I.SO always very fast, and requiring transshipments fromwider to standard-gauge tracks) to road transport. 1.40 ,,- I\. In order to achieve this objective, it is important for the � railroads to be improved, and for the line to be modernized, 1.30 allowing for higher speeds and for safe transport. Finally, once again, combined transportation through 1.l0 Black Sea shipping lines provide additional alternative links ; to the overall transport corridors. 1.10 5110 5/17 5IZ4 5131 6f7 . fI14 6.Ill 4. Conclusions The dollar in yen Armenia needs foreign investment in the financing and New Yorklate .rtemoon Ib:inI construction and/or improvement of these motorways and railways (to international specifications), and the develop­ 100 ment of the relevant secondary infrastructure and of other infrastructure for services and tourism. It is desirable that 90 other countries, international organizations, international 80 � '-' financing institutions, and private investors participate, be­ , cause this program is not oriented towards Armenia's needs, 70 but more than that, it is a program for regional development. Despite the fact that Armenia has initiated this program, 60 it is desirable that other interested countries, such as Russia, 5110 5117 5IZ4 5131 6f71 fI14 6121 the United States, Iran, Turkey, Germany , France, Greece, The British pound in dollars Japan, China, Azerbaijan, and other countries of Europe New YorkIate.rte moon ftxInc and Central Asia-which regard the processes of economic integration as a long-term issue and one which is a guarantee 1.80 of durable stability in the region-participate in its realiza­ tion. It would also be advantageous to create four free-trade 1.70 and economic zones at the points where the transport corri­ I dors cross into and out of Armenia. 1.60 Of course, it is well known that the European Community - is in parallel studying the "Europe-to-Central Asia" link I.SO through its Traceca program in T ACIS . i Economically, it would also be advantageous and justifi­ 1.40 able that other infrastructurepro jects and links be built along­ 5110 5117 5IZ4 5131 fI14 6121 side the planned transport corridors of Program Crossroads, The dollar in Swiss fr ancs including: the gas pipeline running from Iran to Europe, New Yorklate afternoon fixlnc which is planned to be built by the Iran Gas Europe Economic Interest Grouping; the gas pipelines from Turkmenistan to 1.30 Europe, and also from Azerbaijan to Europe, whose con­ structions have been a topic of discussion for a long time; as 1.lO well as the oil and gas pipelines feeding Armenia. 'I The Ministry of Construction is confident that this pro­ 1.10 � gram will become an international project, and will be de­ 1.00 I signed and built by numerous international specialists, com­

panies, international financial institutions, and countries, as 0.90 well as Armenian specialists and private individuals from 5110 5117 5124 5131 6f71 fI14 6121 Armenia and around the world.

EIR July 7, 1995 Economics 23 BusinessBrief s

Finance constitute three-quarters of the 2,800 Italian GermanhistOrian school of economics," as the pilots, and their protest paralyzed Italian air­ leader of a sChool that has been fighting the 'Forum' covers LaRouche ports. A1italia pilots arenot demanding wage economic mainstreamin theWest. increases, although they earn less than their on financial meltdown List's cofltribution, while refuting Adam Germanor Frenchcolleagu es, but want to stop Smith,is thathe considers what Adam Smith policiessuch as hiringCanadian or Australian leaves out-,the productivity which includes Finanz-F orum, thenewsletter of the National crewsflying on airplanes sold by A1italia. The not only rnatCrlalcapital, but science and tech­ Associationof Financial Servicesin Gennany, pilots aredetermined to force the resignation nology, Christianity, political-legal systems, citedEIR founderLyndon LaRouche and EIR of management. and cultural mentality, the authors said. List financial specialistJohn Hoefle as authorities Capt. Eugenio Boldi explained to the fonns his 0'fIl economic theory of growth, on the global financial crisis, in its June 1995 Italian daily Corriere della Sera on June 16 with a systeIl1lltic, unique, but sharppoint of issue. that management "is trying to do with air­ view, diffen,.g fromthe classical schoolof his­ Dr.Dieter E. Lueder, in anarticle entitled planes what they did in sea transport, that toricalanal y�is. "Finances and Crises," in a section on deriva­ is, bringing a service which has European The arti¢le quoted List from his rnajor tives, wrote, 'These are unimaginably huge standards [down] to the level of Third World workof 1841!, theNationalSystemofPolitical­ amounts of money in a kind of 'soap bubble. ' countries. " Economy, �d highlighted his refutation of According to John Hoefle,who gave apresen­ TransportMinister Caravale, a free-mar­ Adam Smithr tation in Washington in March, in the United ket economist trainedin England, refused to List's ecbnomic theory of growth has a States alone,the estimated size of derivatives mediate in the negotiations and ordered strik­ powerful intl:rPretation which fits the reality contractsin the fivebiggest banks is $8 billion. ers back to work,using a law that crirninalizes of developing countries, and thus becomes a The FrankfurterAligemeineZeitung estimates strikes that seriously disrupt public services. major chall$ige to the western mainstream that in Germany, the fiveleading banks have Caravale's dismissal has been demanded by theory of ecqnomics, the articlesaid. The fa­ derivatives contracts of around 3.7 billion the parliamentary opposition. An editorial in mous economistList studied almost everyas­ deutschemarks.. ..LaRouche explains that the daily La Repubblica on June 19 accused pectof econqmics, and thequestions he raised these [derivatives] areof novalue for the econ­ "anti-privatization" bureaucrats of the old concerningeConomic growthalso concems all omy; on the contrary, they pull money out of state-owned industryof steering the pilots ' ini­ thefactors oUife, it said. theeconomy ." tiative. Lueder states, "All facts considered, we A1italia ChairmanRenato Riverso, a cost­ aredrawn to the conclusion that these are no cutting fanatic, cancelled all Alitaliaflights on longer isolated cases, but thatwe areconfront­ June 17-18 in orderto increasepublic hysteria ed with a fundamental worldwide financial against the strikers. Riverso is a memberof the Space crisis." board of the British Barings Bank, which he Shuttle ion may lead In discussing what is to bedone, he con­ joined in November19 94, shortlybefore it col­ cludes, "If allthis does notwork, then the only lapsed. to international� station possibilitywill beto initiate a mutually coordi­ nated, ordered bankruptcy procedure. This Space Shu� Atlantis, whose primary mis­ should lead toa new system of financial,trade , siongoalintl?-e 10000yflightthatbeganonJune production, and currency relations interna­ 27 was to �k for fivedays with the Russian tionally. Exactly what that new system would Economic Policy Mir space s"tion, will be astepping-stone to be, would have to beexplained in moredetail the internati�nal space station. at a later point." Friedrich List cited in Thisdoc1cing missionis a dryrun to devel­ China's economic debate op the skills, and procedures that will be re­ quiredfor th¢ in-orbit assembly of the interna­ The irnpactand evolution of 19th-centuryGer­ tional Space' Station Alpha (ISA), scheduled Italy man economist Friedrich List's theory of to begin construction with the first element growth was raised in China in the debate on launched intb orbit in December 1997. ISA Airline pilots protest economic policy, in the March issue of Eco­ will be base4l on the merging of the world's nomics Information, a theoreticalmonthly put only two mapned space programs. deregulation policy out by the Economics Institute of China's The Ru�ians decided to scrap their Mir Academy of SocialScienc es. The articlewas II space station follow-on, which will be­ A1italia pilots went on a "sick out" de facto jointly written by two scholarsfrom School of come the coriemodule of the ISA. The United strike on June 15 to protest the state air com­ Economics in Wuhan University. States, Jap4in, and the European Space pany's policy of deregulation. Alitalia pilots The articlepraised List, the"pioneer of the Agency willieach contribute laboratory mod-

24 Economics ElK July 7, 1995 Bril1ly

• SEEKING A CURE for "finan­ cial AIDS" was on the agenda in the June 18-19 talks between Japanese Prime Minister Tomiichi Murayama and French PresidentJacques Chirac, Japanese sO\IIfCes told EIR on June ules and transportation vehicles. The Rus­ tor,including the state-owned sector and col­ 19. Japanese Trade Minister Ryutaro sians will contribute more than half of the lectively owned sector,holds a dominant posi­ Hashimoto coined the term in 1990 assembly missions required for the station. tion in China's economy." to describe the extreme financial de­ While the United States will maintain the regUlation which President George Space Shuttle as a manned capability that is Bush and British Prime Minister able to perform various functions, the great­ Margaret Thatcher were urging on all est part of its mission will be toconstruct and Health the Asian countries. service the station. Once again thisyear, yet !Ulotherstudy has Diphtheria epidemic • INDONESIA and Kazakhstan been doneby a governmentagency (this time agreed on June 23 to increase eco­ the General Accounting Office), estimating ravages former U o S o S o R o nomic cooperation, following talks thatthe cost of the ISA will betens of billions betweenPresident Suharto and Presi­ of dollars more than NASA estimates. Like The widespread outbreak of diphtheria dent Nursultan Nazarbayev in Jakarta, many othersbefore it, thisreport simply adds throughout the former Soviet Union "is the Reutersreported. activities into the station cost that NASA ac­ biggest public health threat in Europe since counts for differently, inflating the supposed WorldWarll,"wamedDr. JoAsvall, Europe­ • LOCKlJEED MARTIN an­ cost of the station. It is designed to have the anregionaldirector for the World Health Orga­ nounced 35,000 layoffs in late June, maximum destabilizing effecton the ongoing nization. According to WHOand Unicef offi­ nearly one-quarter of its 170,000- budget discussions. As space writer Kathy cials, 150-200,000new cases of diphtheria are person workforce. It will close a Sawyer pointedout in the June 24 Washington expectedthis year. dozen or more plants. In March, Post, however, the station, despite the sniping Experts fear that the situation is out of Lockheed Corp. and MartinMarietta of critics, is beingbuilt, andin 30 months will control, and that the disease could rapidly merged forming the largest defense start to functionin space. spread into westernEur ope. It could then, as aerospace firmin the world. one put it, "leap across the Atlantic" to the Americas. • THE USDA on June 12 forecast Richard Reed, a Unicef spokesman, told falling harVests and low stocks. China BBC on June 19 that "the outbreak is literally World production of grain (including galloping out of control"in the 15 countriesof rice) for the crop year ending on June Resistance to the former U.S.S.R. 'The human costs can 30 is estimat¢ at 1,744 million metric bestartlingly high ," Reed stated. He reported tons. Projectibns for1995-96 are down privatization grows that,in the CentralAsian nation ofTurkmenis­ to 1,724� , which would dropworld tan,the mortality rate forchildren under two stocks from293 mmt to 255 mmtfor the Hong Hu, vice minister of the StateCommis­ years of age who have contracted the disease coming year. This is the equivalent of sion for Restructuringthe Economy, China's is a staggering 50%. 52 days' cOQSumption. top economic affairs official, has reaffirmed These WHOand Unicef officialshold the China'sdetermination not to privatizeits state­ following factors responsiblefor the alarming • FOREIGN EXCHANGE trad­ owned enterprises, the officialChiTlLlDaily re­ spread theof disease: the breakdownof proper ing around tlte world probably hit $2 portedon June 21. China will continue to re­ forms of immunological control, the precipi­ trillion per dtzyin March, ChrisDeut­ form its state-run giants, but, contraryto for­ tous decline in vaccinations since 1989 in the ers, head oHorextrading at Lehman eigners' anticipation, "privatization isn't the newly independentstates of the formerSoviet Brothers, told the June 6 London Fi­ orientationforthe restructuringof state-owned Union, thegrowing socialdisorder in a period TILlncial Times. Klaus Said, head of enterprises," hesaid. of "economic transition," and the increasing forex at J.P. 'Morgan, said, "We think More than 16,000 enterprises have been "human traffic" between different countries [the April fi*ure] will startwith a two merged, and 9,000 enterprises have become and betweenEast and West. Also, the normal [$2 trillion] . Some say three." joint stock companies, said Hong, who has vaccination for diphtheria, which many get in beencharged withfo rmulatingpolicies on stat­ childhood, doesnot confer lifetimeimmunity; • KLEINWORT BENSON, a e-enterprisereform . The joint-stocksystem is vaccinations must berepeated at least once ev­ British merchant bank, is in negotia­ a property organization setup which differs ery 10 years, healthofficials are now realizing. tions to be bOught by DresdnerBank , from private ownership and doesn't conflict Whatis not discussed in the reportsof these the second iargest commercial bank with socialistprincip les, he said. U.N. organizations, is why therehas not been in Germany. Kleinwort Benson has Hong insisted that China's reform efforts a massive effort by West to help the former been one of the most important fi­ do not constitute a move toward privatization, communist countriesdeal with the crisis , since nancial arm�of British intelligence. becausethey will "see to it that the public sec- diphtheria is readilytreata ble.

EIR July 7, 1995 Economics 25 TIillFeature

LaRouche '5 ninth economic for�cast, one year late� by Christopher White

One year has now gone by since EIR published LyndqnLaRouche 's ninth econom­ ic forecast, "The Coming Disintegration of the Financial Markets ," on June 24, 1994 (also printed as a New Federalist pamphlet). Posed as a test of the sanity of such officials as the Bank of England's currentgovernor Eddie George, LaRouche put forward in that writing the conclusive proof"that the near-term disintegration of the presently bloating global financial and monet� bubble is unstoppable by any means alternative to governments acting to place the relevant institutions into bankruptcy reorganization." Over the intervening months, Orange County, California, one of the wealthiest counties in the United States in terms of per capita income, has declared bankruptcy. And, now , foll';'wing voters' rejection of a proposed 50¢ increase in the sales tax, the county t)ices imminent default on its obligations. Currency convulsions radiating out fr�m the Republic of Mexico signalled the end of the liberal free market reform& which have made so much bloody wreckage of the world in the years since 19891 One of the City of London's oldest investment houses, Barings Bank, bankrupteditself. And still to come? The list goes on, but highlights would include: Japan's banks, saddled with over $400 billion of soured loans, standing on the edge of collapSe; all of Britain's investment banks, victims of depositor runs in the aftermath of the Barings crisis; Britain's insurance market, Lloyd's of London, insolvent; and the bankrupt public finances of at least 10 countries in the industrial world. It can be assumed that among the heads of state who assembled for the recent summit proceedings in Halifax, Canada, there were among them those familiar enough with the import of what LaRouche has had to say. Such knowledge, whether they agree or not, can be contrasted with the brieflytouted achievements of that summit of the Group of Seven countries. AmOng those achievements was I the establishment of a special fund to deal with potential repetitions of this past Christmas's Mexican peso devaluation fiasco, and the aftermaththereto . This fund is to be based on a doubling, from $28 to $56 bil1ion, of a facility within the

26 Feature EIR July 7, 1995 •

A precision machining and special development technician checks dimensions of the propjetfan hub. Such productive workers now constitute less than 30% of the total U.S. labor fo rce.

International Monetary Fund. back ove, LaRouohe's forecasting of the last neoriy 40 As far as the public proceedings went, this doubled fi­ years, and ask themselves what is differentabout his method of nancial facility was about the only recognition the assembled approach, and the one they and their1 like still seem content to heads of state and finance ministers gave to the deepening rely on. It is all fine and good hav,ng indicators. As long, international financial and economic crisis. But behind the however, as there is some correspondence betweenthe indica­ scenes, it is well enough known that different kinds of discus­ tor and what is indicated, and as long as the user knows what sions, driven by altogether different views of the current is supposed to be going on. No one in their rightmind would situation, are going on. use a street map as a guide to cooking dinner. But, when it The proposal to set up such an emergency fund represents comes to financialand economic mJtters, it seems that is the the thinking and assumptions of one of the elements of that kind of thing most of us choose to �b, every time. behind-the-scenes discussion, namely, the insistence that There are still people around who insist that LaRouche is there is no systemic economic and financialcrisi s, but rather off the wall. There are others who airee with him: though not episodic problems, whose periodic eruptions can be dealt all for the same reasons. Among them, the Gotterdammerung with by administrative means. The proposed fund is to be crowd of modem chaos theory, w10 insist, that out of the combined with the development and adoption of a set of coming collapse will emerge their new order, as well as those "early warning" indicators which are supposed to provide who do agree with LaRouche, but don't think it politic to be qualified administrators with the necessary notice to act in seen and heard in such agreement iJ public. And then, there advance of the eruption of such crises as last winter's Mexi­ are the advocates of early warning �ystems, who insist that can explosion. Since the composition of such indicators will there's really nothing wrong with Ote financial system that be known, it is tempting to ask who on earth would expect changes in management and admirlistrative methods won't the proposed $56 billion to be adequate to stem the tidal flood be able to fix, and keep on fixing. of flight capital that will surely be triggered as the adopted What LaRouche said in his "Ni1 th Forecast" was, as he indicators start flashing their warninglights . told various relevant Russian scie tific institutions during Early warning indicators? One could imagine someone, the last week of April 1994: "The �resently existing global waking from the sleep of the dead at the sounding of the financial and monetary system will disintegrate during the Last Trumpet to ask, "Did the alarm go off? Where's my near term. The collapse might occu this spring, or summer, breakfast? Am I going to be late for work?" Who needs such or next autumn; it could come next year;it will almost certain­ early warning indicators now? They ought instead to look ly occur during President Williacl Clinton's first term in

EIR July 7, 1995 Feature 27 office; it will occur soon. That collapse into disintegration is tion campaign, that we were in the grip of a global financial inevitable, because it could not be stopped now by anything "mudslide." "Many people," �e said, "have been looking but the politically improbable decision by leading govern­ for a definitive one-day, two-d�y, three-day financial crash, ments to put the relevant financial and monetary institutions perhaps on the markets. . . . "What they are seeing is the into bankruptcy reorganization." Great Mudslide of 1991." And, ISO it went, from the continu­ ing collapse of Tokyo's Nikke� index through 1992, to the LaRouche's record currency crisis of the fall of 1992 and spring of 1993, to Over the course of 40 or so years as an economist, bankruptcies of financial insti�tions in Venezuela, Germa­ LaRouche had produced just eight forecasts of critical events, ny, Spain, Canada, the United �tates. prior to publication his ninth. Each such forecast, made on That record can be set agaiftst the pretensions of those, the basis of his LaRouche-Riemann method, has been subse­ for example, who are now discfssing setting up their "early quently confirmed by developments. The summary of his warning indicators" of future �rises, such as the one that forecasts, by date, is as follows: erupted in Mexico last Decembbr. How many of them fore­ 1) During the late autumn of 1956, he forecast the immi­ cast that development before it occurred? EIR did, back in nence of a major U.S. economic recession triggered by the April 1994. Why would anyoqle think that methods which bursting of the post- 1954 bubble in consumer credit. The failed before would function nolw? But, what about a record recession, known later as the "Eisenhower" recession, was which has been proven to be ¢onsistently right, where all acknowledged to have occurred laterin 1957. others have been proven to be c nsistently wrong? bI 2) During 1959-60, LaRouche made his first long-range A year ago, in supplying th¢ proof that, shortof govern- economic forecast, to the effect that near, or shortly afterthe ment action to put responsible i.stitutions throughbankrupt­ middle of the 196Os, there would be the first of a series of cy reorganization, a global fin�cial collapse had become major monetary disturbances which would lead toward the unavoidable, LaRouche wrote at he was supplying not only collapse of the then existing postwar Bretton Woods ex­ a sanity test, but also a mo �Y test for officials, and the change rate system. The firstof the series of major monetary voters who elect them to office�f., For, if his warnings were to upheavals erupted in November 1967 with the collapse of the be acted upon, the Ninth Forecast that he has put his 4O-year British pound. The official breakup of the Bretton Woods record behind, would not have to occur. system began on Aug. 15, 1971, when Richard Nixon broke the linkage between the dollar and gold, to let the U.S. cur­ A method of a ditTerent sort rency floatfree ly. LaRouche's record is based on a method of a different 3) Campaigning for President in November 1979, sort than the others. We'll see it again now, if the early LaRouche warnedthat the interest rate increases initiated by warners get sufficient time to put together their package of Federal Reserve Chairman Paul Volcker would lead to a dev­ indicators. They'll have numberson currentaccount balances astating recessionbeginning early in 1980. And, so it did. and trade balances, government revenues, expenditures and 4) In February 1983, during the course of exploratory deficits, wage income and expenditures, interest rates, and back-channel discussions conducted with Moscow on behalf currency valuations. And they'll take their statistics, and of the Reagan administration, LaRouche told his Soviet gov­ they'll say something like, for :example, in one case, "Ha! ernment interlocutors, that if his strategic defense proposals trade deficit too big, economy: growing too fast, cut wage were to be rejected, strains on the economies of the Comecon income, investment, and government expenditures to slow nations would be such that that economic system would col­ down growth," or, in another case, "Ha! trade surplus too lapse in about five years . The forecast was repeated in EIR ' s big, economy growing too fast, cut wage income, invest­ July 1985 Sp ecial Report, "Global Showdown." The collapse ment, and government expenditure to slow down growth." occurred during the second half of 1989. Opposite symptoms, same medicine, just as for Mexico and 5) During a spring 1984 televised election broadcast, Brazil last year. LaRouche warned of the outbreak of a collapse in the U.S. They'll take statistics of monetary and pricing aggre­ banking and savings and loan sectors. gates, and they'll do correlations between the statistics 6) In May 1987, in his first and only stock market fore­ they've assembled, and they'll say what has to be "adjusted," cast, LaRouche warnedof a stock market collapse beginning "cut," "restructured" to bring their correlations back into Oct. 10, 1987. On Oct. 19, the Dow-Jones index fell 508 whatever they consider to be statistical balance. That's the points, the largestone-day loss in its history to date. method of using a street map as a guide to cooking dinner. 7) On April 12, 1988, LaRouche described the phenome­ You may end up with something on your plate, but you can non of the "bouncing ball" as the key to following relatively be pretty sure it won't be what's on the map. short-term fluctuations of the U.S. economy. The ball would Monetary and pricing aggregates do indeed enter into keep on bouncing, but its overall trajectory would continue economics, but not as primary data for consideration above downwards. all else. 8) On Nov. 23, 1991, LaRouche warnedduring his elec- LaRouche has started, since the 1950s, from the assump-

28 Feature EIR July 7, 1995 FIGURE 1 FIGURE 2 U.S. workforce-ratio of workers in overhead Useless overhead employm�nt in the United vs. productive employment, 1956-90 States, 1960-90 (percent of total labor force) (percent of total labor force) 100% 80% 17.6% 90% 70% 80% 60% 70% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1956 1960 1963 1966 1970 1980 1990 • Productive employment [SJ Overhead employment [SJ Useful overhead • Useless overhead

Sources: Historical Statistics of the United States, Bureau of the Census, Sources: See Figure 1. 1975; Department of Labor, Occupational Employment Division, and Bureau of Labor Statistics, Monthly Labor Review. Department of Education, National Library of Education; Department of Health and Human Services, Bureau of Health Professions; American Nurses Association. FIGURE 3 tion that economy is essentially human activity, to be made Falling value of U.S. merch$ndise trade as a intelligible for human beings with the same scientific tools percent of U.S. foreign excliange that distinguish mankind absolutely from the lower beasts.' transactions, 1966-90 Ask the others to submit, from out of their early warning 90% indicators, a proof of the uniqueness of human existence, to 80% thereby demonstrate that human knowledge can be con­ sciously developed for application in the pursuit of human 70% activities. They will not be able to do it, no more than would 60% a witch-doctor come up with a cure for cancer. And, if they 50% can't say what is unique about human beings and human 40% existence, neither can they have anything human to say about economy, or economics. They must converge on the view 30% that LaRouche said would be directed against the then so­ 20% called developing countries, and increasingly against the ad­ 10% vanced sector countries, when in 1959-60 he said that the austerity policies of Hitler's Economics Minister Hjalmar 0% 1990 Schacht would be the establishment's policy response to the monetary turmoil he forecast for later in that decade. Since Sources: Bank for International Settlements s4rveys (1986, 1989, 1992); they can't argue what human beings are , they will have to U.S. Federal Reserve surveys (19n, 1980, HI83); GATT. follow the practice of their assumption that man is no differ­ ent than any of the lower beasts. Further, if they can't say United States labor force in select�d years since 1956. In what it is about human beings that makes human economy Figure 2, we focus more closely on one aspect of that evolu­ unique, they've got no way of knowing whether an economy tion, namely, the growth of non-productiveforms of employ­ is doing well, or whether it might be on the verge of collapse. ment, above the proportion so eqJ.ployed in 1956, when LaRouche began to issue his foreclll5ts. In Figure 3, we ex­ The development of man press the value of U . S. merchandiz� trade as a percentage of Let's take the time-frame since LaRouche began his eco­ U. S. foreign exchange transactions for 1966�90. nomic forecasts, back in 1956, to discuss further these two First, though, step back a bit. qntil the Council of flor­ aspects. First we'll compare two sets of ratios. In Figure 1, ence (1439), under the influence of Cardinal Nicolaus of we are comparing the evolution of the division of labor of the Cusa, set into motion the Golden Renaissance formation ofthe

EIR July 7, 1995 Feature 29 modem nation-state, based on the development of mankind's account for the transformation$ humans have created their unique creative capability to advance and assimilate scientific history. It is complete idiocy to suppose that any system of ideas, the characteristic of previous forms of human society statistics could capture anything of that process at all. had been that 85-90% of the population would be occupied That said, tum back to the graphs. Figure 1 is based on in producing the food, and other primarily rural products, that dividing the total labor force into two principal segments. would permit themselves, and the remaining 10% of oligar­ That part which contributes directly or indirectly to main­ chic rulers, and their associated flunkies, to live. The 85-90% taining and improving the basis for human existence, and that were to be treated as the beasts of burden. This arrangement part which, relative to the firs" represents non-productive has been the characteristic through recorded human history overhead. In the first, producti�e portion, we have included of that form of human society known as oligarchic. workers involved directly in tl)e transformation of nature, The Council of Florence institutionalized, for westerncul­ farmers, miners, manufacturing operatives, workers in con­ ture, and thus the whole world, the Christian conception that struction, transportation, and other hard infrastructure such all human life is sacred, because all men are created in the as utilities; the teachers and heal�h care workers, who contrib­ living image of God. As the basis in law for the foundation ute by maintaining the culturall and related potentials of the ofthe nation-state, this idea of man permitted the development population; and the scientists and engineers, who develop of institutions which could replace the prior oligarchic order. the ideas which are transformedl into increased human power Now, the 85-90% of the popUlation, which, in all prede­ through thework of others. Thi� is the partof the workforce cessor societies had been condemned to beast of burden chat­ which uniquely produces weal�. The overhead section in­ tel status could be free to contribute to mankind's develop­ cludes administrators, whether from governmentor business; ment. From the first such nation-state, Louis Xl's France, sales functions; and so forth, addthe unemployed, who pro­ such conceptions radiated across the globe, unleashing a pro­ vide services to the wealth-producers and their families, but cess never before seen in history, in which man's population do not contribute directly to wealth production themselves. increased from a maximum of around 400hundred million to They are instead "kept" as it we�, out of the surplus, or profit over 6 billion today. The proportion of the labor force required that is produced by the wealthproducers. to produce agricultural primarynecessities fell from over 85% Now consider: In 1956, when LaRouche produced his to under 10%. Thus, over 90% of the labor force could be free first forecast of the forthcoming 1957 recession, the ratio from agricultural-type labor to contribute elsewhere, and in between the two stood at 44.4% on the productive side, other ways. Ideas, developed from the circles of Cusa' s Coun­ · 55.6% for the overhead. cil of Florence , and Louis XI, throughLeibniz and his associ­ Assume then that this ratiO was not just arbitrary, but ates in the seventeenth century, to the makers of the American rather reflectsan outcome of the entirety of the process from Revolution, assimilated as technology into the division ofla­ the European settlement of NoI1lhAmerica, and the founding bor, increased human productivity and transformed the basis of the republic, though Lincoln's War for the Union, to of human existence in ways never seen before. Franklin Roosevelt's organizing of the "arsenal of democra­ This process helps to indicate what uniquely distinguish­ cy" to fight and win World War II. An outcome in which es the human species from all lower species. Man alone has ideas associated with the conception of growth which has transformed himself, and the conditions of his existence, to made mankind's history possible, have fought to advance increase his potential to increase the power of the species against those who still wish to tum back the clock on the over so-called nature. Over the course of his existence, from effects of the Council of Florence. This outcome is reflected the baboon-like hominid of the Pleistocene capable of merely in, for example, the near 40-fold increase in the population supporting a handful of million, such increases in trans­ over the 200 years of the republic's existence, and in the forming power have produced a three-orders of magnitude reduction of the relative socialcost of feeding that population increase in the population density of the species. No other from some 85% of the labor f@rce to around 8%. Through species has that capability. such a process the means were created to build the cities The Golden Renaissance marks a breaking point in that which housed the populations which created the industries, process, in that the idea of man in the image of God then and the infrastructure which made that succession oftransfor­ institutionalized provided the unique basis for the accelera­ mations possible. tion of that rate of increase, as reflected, for example, in In other words, assume that ratio between productiveand Gottfried Leibniz's late-seventeenth-century outline of the non-productive workers reflects something of the creative scientific principles to be employed in the creation of the power employed in the shaping of human historyand human economy of the heat-powered machine. existence. Then follow the COUl1Se of that ratio over the inter­ It is an utter absurdity to consider that the process of vening 34 years. mankind's growth, and the development of the ideas which have made that growth possible, have no bearing on discus­ The decline of the productive workforce sion of economy. It is complete lunacy to think that any The 1957 recession LaRouche warned of reduced the system of statistics derived from monetary aggregates could productive component by 4% of the labor force as a whole,

30 Feature EIR July 7, 1995 or 10% of productive workers . The years from 1960 to 1966, earth the principles of human econ0my might be, attempt to which marked the bounds of LaRouche's second forecast, predict a future course of events, 'from the growth of that saw the productive side of the ratio stagnating, with a slight which is inimical to continued human existence. uptick in 1963 reflecting John F. Kennedy's short-lived ef­ Figure 2 assumes that the 1956 proportion of overhead forts to reverse the "Eisenhower recession." The last years workers to productive workers is a tolerable allowance for of the decade of the 1960s, which saw the eruption of the the functioning of the economy, and scales the succeeding terminal crisis of the postwar Bretton Woods system, saw rations of overhead employment to that allowance. Just as the productive part of the ratio decline by another 3% of the with an individual corporation, overhead in the economy as workforce as a whole, or 9.2% of the productive labor force. a whole is "paid for" out of gross' profit, and, just as with Then compare the transformation from 1970 to 1980, the an individual corporation, the ratio between overhead and yearafter LaRouche 's New Hampshire forecast of the effects productive costs in the economy cannot vary much from50% of the Vo1cker-Carter interest rate policy-another 6% drop to 50%, without eliminating the net profitwhich is the basis relative to the workforce as a whole, or 16.5% of the produc­ for investment in the future advance of the particularcompa­ tive workforce. That shrinkage is concentrated in the years ny or economy. Reinvestment of profit, in such a way as to after 1978. Then follows, between 1980 and 1990, the year cheapen the costs of production through increasing worker before LaRouche's "mudslide" forecast, the elimination of productivity, and thereby also the cultural and skill levels of another 12% of the productive workers , down to just under the general population, has defined through a succession of 27% of the workforce as a whole. revolutionary, and lesser technical changes, the pathway the This is the backdrop to the succession of LaRouche's growth of the human species has taken over the 500 years forecasts. Take the whole process from 1956. What do we since the Council of Florence. see? That the productive part of the workforce, reduced from Extract that profit, through looting and asset-stripping, 44.6% of the labor force to 26.8% by 1990, has been slashed for other parasitical purposes and economic policy becomes by 40% . What does that mean? the instrument of a killer disease" not of the furthering of First, to maintain the same level of per-capiia output, human well-being. The growth of overhead above the 1956 relative to the population as a whole, that prevailed in 1956, allowance therefore represents, in part, the looting process the productivity ofthe remaining productive part theof work­ by which the economy has been destroyed. It is a ration force would have to have increased by 1.66 times. That has which is "taken out," as it were, from gross profit and the not happened. In 1956, one worker could support a family cost base which produces the profits, at the expense of the with one wage packet. By 1990, only 10% of households of shrinking productive capacity, but is not replaced through married couples were supported by the labor of one wage net new investment. earner. Household size had fallen from over 3.3 per house­ Now comparethe growth ofthat representation of the looted hold to under 2.7. But the process-a 40% decline divided portion of economic potential overthe 40years. At 7% in 1956- by 36 years, roughly 1 % a year-has not been uniform, but 60;at 2.8% in 1960-63; at -0.1 % in 1963-66;at 4.5% in 1966- has been defined by relatively abrupt shifts, each of around 70; at 9.6% in 1970-80; and 15% in 1980-90. Note that the rate 10% or more , and each concentrated into a relatively short of extraction ofloot from productive potential of the economy time frame. These step-function-typedeclines in the summa­ is actually increasing. Compare that increasing rate with the ry ratio of the functional division of labor in tum reflect the decline in the productive portion of the workforce. Thecom­ occurrence of the breaking points which LaRouche warned bined destructionof the productive potentialsof the economy, of in his succession of economic forecasts. as represented in the changing composition of the division of And, further, the process as a whole can be definedas the labor, and the accelerating growth ofthe effects of parasitism systematic reversal of more than 200 years of America's and speculation within the divisionl are what ensure that the history, since the Constitutional Convention, and of the pro­ present financial system will collapse. cess since the Council of Florence in which the particular 200 That can be said without reference to financialmatters as years of American republican history are embedded. That in such. For the financial system is ultimately nothing but a tum means that the last 40 years of U. S. history represent network of claims against the wealth produced by the labor a systematic violation of the known principles which have of human beings. There is no other Source of wealth. Reduce underlain mankind's historical progress as a whole. The fur­ the productive power of the labor force and population, and, ther reduction of the society's productivecapacit ies, through clearly, one is also thereby setting a limit to the growth of asset-strippinglooting , has beenchosen as a course of action the financial claims which ultimately must be settled against at each such breakingpoint juncture, in favor of the propaga­ wealth production. Pyramid the financial claims, while si­ tion of an anti-human financial system based on speculation multaneously reducing productive ¢apacity, and the bounds and parasitism. LaRouche's forecasts since 1956 have been which circumscribe the limits of sU(;h looting will be drawn based on the application of his method to the interplay be­ ever tighter. tween these economic and financial-monetary processes. So far we have not said anything about money values, This in contrast to his opponents who, not knowing what on about monetary aggregates or any of the "indicators" that one

EIR July 7, 1995 Feature 31 would expect to end up in the assembly the Group of Seven leaders want put together. But we have shown how the 40- FIGURE 4 waterborne commerce, 1956-89 year process of economic decline, which LaRouche has fore­ U.S. I cast through its successive phases, is reflected in these two (tonnage per capita of combined im�orts and exports) parameters of economic activity, as the violation of condi­ 6 tions that are necessary to maintain human existence. Figure 3 introduces financialconsiderations and permits 5 that approximation to be set against another ratio, which will approximate, in first instance, the monetary side of the 4 process. Here we have the relationship between U.S. mer­ chandize trade (the dollar value of imports plus exports) and 3 foreign exchange transactions. The foreign exchange figure is estimated, for 1977, 1980, and 1990, by multiplying the 2 Federal Reserve's estimated daily volume of foreign ex­ change traded by 224, the number of "trading" days in a year. Numbers for 1970 and 1966, in the absence of official statistics, wereestimated by taking the ratio between foreign o exchange trade and the dollar size of the Eurodollar market in 1977, and applying that ratio to the size of the Eurodollar i Source: U.S. Census Bureau, of market in the earlier years . Statisticalftbstract the United States. We are thus looking at the relationship between all for­ eign transactions using the dollar, and those transactions im­ simultaneously being looted of everything movable within plied by the volume of trade. U.S. exports can be paid for in its economy. Equally, a country whose trade was in balance foreign currency converted into dollars, and imports with need not by that token alone bel a country which is also self­ dollars converted into foreign currency. If the only currency sufficient, and capable of proclucing what was required to transactions made were those which involved international meet all its internal requirements. That has been, and is, the trade in goods, the ratio between the two would be 1: 1. There history of colonial relations down to this day, as theexample are non-trade-related foreign currency transfer, of course. of China still attests. However J it is worth pointing out, that But, leaving that aside, the more the ratio retreats from 1:1, between 1956 and 1970, the l/Jnited States did run a trade the more non-trade-related currency transactions there are. surplus. In 1956, exports exce¢ded imports by almost 16%, As this ratio nears, and surpassesthe 50% level, the more of in 1960by 11.3%, in 1963 by 11.4%, in 1966 by 4.8%, and a problem it is going to be, because it means that a country in 1970 by 0.6%. But in 1980, under the Volcker-Carter has abandoned control of its currency, and, by implication, recession, this was transformed. into a 7.5% deficit, and in its credit system. This transformationcan therefore be taken 1990 into a 13.5% deficit. as an indicator of the growth of purely speculative financial Also to be noted, over the : 34-year interval from 1966, transactions. while the non-trade-related component of foreign exchange Thus one can estimate that 82¢ of every dollartransaction transactions increased some 4O-fold, the dollar valuation of in 1966 involved trade in goods, whereas in 1990 2.1¢ of trade increased some 16 tim�s. In contrast, as Figure 4 every dollarcurrency transaction involved the trade of goods. shows, the physical volume of such trade merely doubled Compare the changes, by time interval, since 1966, with over the same time interval. Th¢ dollar value of the tradethus the comparable changes in the ratio by which overhead em­ increases eightfold, and the foreign currency transactions ployment exceeds the 1956 allowance. From 1966 to 1970, five times faster again than the pstensible monetary inflation the years in which LaRouche said in his 1960 second forecast, in the dollar value of the physi4al goods exported or import­ currency turmoil would sweep away the postwar Bretton ed. This, set against the declint:\in productive capacity repre­ Woods monetary order, the ratio fell from82% to 25%, or the sented by the decomposition of the division of labor, begins speculative component in international financialtransactions to show how the parasite has been consuming its host, or a increased 3.28 times. From 1970 to 1977, there was rough how a merely speculative financial system was transformed stability, a 1.08 increase in the speculative component. From into a bubble unprecedented in human history . 1977 to 1980, the interval which includes LaRouche's fore­ cast of the effects of the Volcker-Carter interest rate policy, Economy decoupled fro.. monetary flows this more than doubled to 2.4 times, and from 1980 to 1990 The next series of graphs show this process in different it nearly doubled again to 4.5 times. aspects. They represent, successively: the history of the dol­ Trade flows, whether positive or negative, do not precise­ lar over the near 4O-year period' in which LaRouche has been ly mirror the functioning of the economy. After all, it is making his forecasts (Figure 5); the price of crudeoil (Figure conceivable that a country could run a trade surplus, while 6); and then, some selected indicators of the purely financial

32 Feature EIR July 7, 1995 FIGURE S FIGURE 7 Deutschemarks per dollar, 1956-91 Growth of the unregulated I Eurodoliar market, 1965-90 : 4.5 (trillions U.S. $ equivalent) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 1956 1961 1966 1971 1976 1981 1986 1991

Source: International Monetary Fund. Intemational Financial Statistics. 1965 1970 1975 1980 1985 1990

Source: International MonetaryFund. IntemBitional Financial Statistics.

FIGURE 6 Petroleum prices, 1956-90 ($ per barrel of average crude) FIGURE 8 Money in U.S. mergers an� acquisitions, 1960-93 (value of funds involved for businesses pf all types. billions $) $300

250

200

150

100

1956 1960 1963 1966 1970 1980 1990 50

Source: International Monetary Fund. Intemational Financial Statistics. o +---���--�--�-- 1960 1966 1972 1978 1984 1990 side of the process by which the financial system was turned , Sources: U.S. Census Bureau. StatisticalA b.itl1!lct of the United States. into a speculative casino, and then into a bubble. There are 1989-93; Mergers and Acquisitions Publishin, Co. Database. portrayed: the growth of the offshore Eurodollar market, representing those financial claims against assets which are ! effectively outside the control of any national authority (Fig­ This graph series can be com�ared with what we have ure 7); the growth of that activity which is euphemistically seen above, in regardto the shiftin� composition of the divi­ called "mergers and acquisitions," which became notorious sion of labor, the decline of the pr¥uctive part of the work­ in the 1980s as the asset-stripping of productive resources force, the growth of that partof the ,on-productiveworkforce and potentials throughleveraged buyouts (Figure 8); net new beyond the allowable 1956 level, �d also against thegrowth investment funds raised for finance and real estate (Figure of foreign exchange speculationas i such. 9); and lastly, the growth of derivatives, those pernicious First, look at all the graphs h� succession. Notice that instruments whose so-called value is tied to the pricing of there is a clear break in each one pf them in 1970. We can something else, whether more or less directly, or indirectly, thereforedistinguish two different 'forlds out of this process. (Figure 10). Those two different worlds corre pond to what LaRouche as in the leveraged versions of such transactions ,,

EIR July 7, 1995 Feature 33 currenciesin the 1950s to gold), � falling oil price (morethan FIGURE 9 30% in the 14 years between 1�56 and 1970); contrast that New financing raised for finance and real apparent stability with the increa�es in the Eurodollar market, estate, 1948-93 in mergers and acquisitions, ankl the growth investment in (billions $) financeand real estate, during !tie same years before 1970. $400 The offshore Eurodollar m�ket increases sixfold, ap­ proximately, from 1966 to 197(>; mergers and acquisitions 350 double between 1960 and 1966 and then nearly double again 300 by 1970; money raised for finance and real estate increases 250 by 40% between 1956 and 1960,iby 25% between 60 and 63, and then 1.6 times between 1966 and 1970. 200 Compare these changes withiwhat then occurred between 150 1970 and 1980 and again bei\feen 1980 and 1990 under conditions of floating exchange *ates and subsequent succes­ 100 sive applications of the free-mar�eteers ' policies of deregula­ 50 tion. The changes: Gold price �ncreased 17-fold by 1980; the oil price 22 times between �970 and 1980; mergers and O �--��--�--���---,

34 Feature EIR July 7, 1995 and services, such as food, clothing, housing, education, health, and so on. Such useful goods and services arenot op­ FIGURE 11 tional. They arenecessa ry requirements, definedby the stan­ Employment of operative as percentage of dards set, e.g., educational qualifications of a productive actual requirement � worker who can usefully contribute to the existence of the 90% generations that are to come. Through that approach we can establish what the costs of reproducing society, in terms for 80% example of labor equivalents, or energy equivalents. We're not talking about how these things might look in someone's financial statistics. Taking up these matters from the stand­ 70% point of the reproduction of human existence is to take them up as matters of life or death importance for all of us. Against 60% this the bubble, and its proponents, represent the culture of death. 50% The requiredoutput of such useful goods and services can be systematized in the form of market baskets of consumers' 40% and producers' goods. (See LaRouche's 1984 book, So, You Wish To LearnAliAbout Economics? New Benjamin Franklin 30% +------,----,-----,----,---- House, New York, 1984.) Such requirements can then be 1967 1970 1975 1985 1990 used, as we used the ratio of productive to non-productive workers of 1956, to assess past and future economic perfor­ mance. We can thus definea society's economic performance in terms of its ability to reproduce itself, in an improved way. FIGURE 12 Such a standard would take us beyond the functional Percent of actual workfor�e required to division of labor of 1956 which we have been using as a produce 1967-style market basket yardstick, by introducing the question of productivity. Given such a division oflabor, how capable is a society of producing the means of its own existence? We took the per-capita stan­ dards of19 67 to determine this, assembling a listing of some 225 products which are consumed by either households and people, or producing industries, and a selection of construc­ tion projects, housing, schools, hospitals, offices, and so forth, to determine what the levels of consumption of goods were back in 1967, what the bill of materials required to produce such a listing of products might be, and the extent to which the ability to produce that array of products has changed since 1967. The requirements thus definedcan be expressed, for ex­ ample, in terms of the numbers of workers required to produce Machinery the requirement, or in terms of the shortfall of such workers. O% +---,---,---�._---r_---, The following two graphs encapsulate the result. We're capa­ 1967 1970 1975 1�80 1985 1990 ble of producing less than half of what we would have consid­ ered to be, perhaps, a decent standard of living just 28 years ago. Forget about these bloated financialstructures whose de­ mise is already ordained. Reverse the destruction of society's percentagesare the magnitudes by which employment would productivity which made the speculation and the bubble possi­ have to be increased to meet the prbductionlevel required. ble, and it will readily be proven that life can and will go on. Think now wherethe forecastbf financialdisintegration We would have to more than double employment in manufac­ is coming from. It is coming fromUte only authority who has turing, assuming currenttechnol ogies, to produce a compara­ built up an accurate forecasting re¢ord over thespan of eight ble market basket of producers goods to the one taken for previous forecasts and nearly40 y�ars. Isn't it abouttime to granted back in 1967 (see Figure 11). stop worrying about what the expcits, or neighbors will say, The same parameters can be definedby sector. The graph and startto face up to the fact that LaRouchebeing consistently shows operative employment requirements to meet produc­ right, while others have been consiStentlywrong , means that tion of 1967-style market baskets for the textile, shoe, steel, what he says is going to happen, $td what ought to be done and non-electrical machinery industries (Figure 12). The about it, is something you should takevery seriously?

ElK July 7, 1995 Feature 35 �TIillInternational

Terror attack fails,to silence Zapatista foes by Carlos Wesley

A terrorist assault in Paris on June 20, staged by French aim is Mexico's institutional ad territorial disintegration. supporters of the Mexican Zapatista National Liberation Details of the attack, and of the congressmen's message, Anny (EZLN), failed in its aim of preventing two Mexican were reported prominently by �e Mexican and the interna­ congressmen, Walter Le6n Montoya and Ali Cancino Herre­ tional media, including Reuter and Univisi6n. ra, from completing a tour of Europe and publicizing the ugly The attack had the effect of e�posing the British sponsors truth aboutthe EZLN . The two legislators , who represent the behind the EZLN. Parts of an i�terview given to a Chiapas beleaguered state of Chiapas in the Congress of Mexico, radio station by Hugo L6pez Ochoa, spokesman for the visited France, Germany , Italy, and the Vatican. They were MSIA, were picked up and rebroadcast throughout all of accompanied by Marivilia Carrasco, leader of the lbero­ Mexico by Notisistema Mexicano. L6pez Ochoa said that American Solidarity Movement (MSIA) in Mexico. the Schiller Institute had protestedto the French government The visit, organized with the help of the respective Schil­ for the negligence of the Frenchpolice , which failed to pr0- ler Institutes of the host countries, gave Europeans the true vide protection for the congressJinen. He also gave a detailed picture about the ongoing uprising launched on Jan. 1, 1994 report on how the international oligarchy that is grouped by the EZLN: This is not an indigenous "Mayan Indian" around the British monarchy, ha, deployed and runthe EZLN rebellion, as is generally portrayed by the media, but rather and its international support apparatus, acting through such a grab by the international oligarchy for resource-rich Chia­ individuals and institutions as Imnce Phillip's World Wide pas, said the congressmen. Fund for Nature , the elite Clu� of the Isles, the Hollinger Apparently fearing that the tour would destroy the tissue Corp. media empire , columnist Ambrose Evans-Pritchard, of lies they have spread internationallyaround Chiapas, thus and the multi-millionaires Jimmy and Teddy Goldsmith. threatening the political and financial support that important layers of European society provide to the EZLN, controllers Ruiz, the first-class terrorist of the EZLN ordered the June 20 terrorist assault. As the law­ The congressional tour occured in parallel to an organiz­ makers were about to give a talk in Paris, about 20 individuals, ing drive in Europeby Samuel Ruiz, bishop of San Crist6bal some of them hooded with ski masks in the style of the EZLN, de las Casas in Chiapas. Ruiz, !who is known to be the top entered the hall, blocked the doors, and attacked the Mexican commander of the EZLN's armejdinsurge ncy, was in Europe parliamentarians and the audience with chemical irritants, "not only to lobby for the Nobe� [Peace] Prize, which would stink-bombs, and firecrackers. A number ofconference parti­ be fatal for Mexico," said L6pe� Ochoa, but to get financing cipants were injured, including a representative of the Mexi­ for the uprising the EZLNis planpingfor July-August, "when can embassy and two journalists. The majority of theattackers the most painful part of the International Monetary Fund's were French skinheads, who absconded with the list of partici­ economic package will be implemented." pants . Before leaving, they spray-painted on the wall, "Land The MSIA spokesman said that "Samuel Ruiz may have and Liberty: EZLN ," "EZLN ," and "Viva EZLN." lost his Nobel because of this attack. Now Europe knows that The attackers' actions spoke more loudly than words the EZLN is not only a Mexican problem, but a European could have done. They proved conclusively that the Zapatis­ one as well." On June 22, the (:hiapas daily Es gave front­ tas are not fighting for Chiapas's "poor and downtrodden," page, banner headline coverag� to the charges levelled by but are part of an international terrorist operation, whose the MSIA spokesman.

36 International EIR July 7, 1995 ing it vulnerable to the international financial forces which are out to seize its vast natural resoLrces, the Mexican law- makers said. The delegation met with EuropeanI parliamentarians, dip­ lomats, military and government officials, churchmen, and media representatives. They also Jet with "the very presti­ gious" Lyndon LaRouche, as he wasldescribed by Le6n Mon­ toya. At those meetings, Cancino Herrera dispelled the four most common myths about the ChiJpas uprising: Myth 1: The EZLN defends the Indians. Truth: Most of the truly indigenous population fledlthe EZLN. Myth 2: The Chiapas cattlemen are racist oligarchs. Truth: Most are poor, and many arelIndians. Myth 3: The Roman Catholic C�rch supports the rebels. Truth: Of the three Catholic dioce�es in Chiapas, two are against the armed movement. Only in Ruiz's diocese are priests actively engaged with the EZLN. Myth 4: The Indians are the "gdod guys," the others are Marivilia Carrasco of the [bero-American SolidarityMovement I stands before graffitisprayed by French pro-Zapatista skinheads bad. Truth: There are good and bad Indians, just as there are during the June 20 attack. during which a number of people were good and bad Mestizos and whites. I injured. In his June 23 interview from "Bonn with Radio Red of Chiapas, Leon Montoya said that iA Germany they' had met Bishop Ruiz, who subscribes to the existentialist Theolo­ with officialsof Misereor and Advebiat, two charities linked gy of Liberation, happened by chance to be flyingto France to the Roman Catholic Church tha� have provided funds to on the same airplane as the congressmen-"but with the Bishop Ruiz and his terrorist projdcts. Le6n Montoya said important difference that while Bishop Ruiz was flyingin first that they informed officials of botp organizations that the class, we were flyingin second class," quipped Congressman money they perhaps thought was going to help the impover­ Leon Montoya in a phone interview with a Mexico radio ished Indians of Chiapas, was instdad being used to finance station from Bonn, Germany on June 23. c'a1' of th charit'.' took th" infoc· Just as was the case with the Nobel Peace Prize that was :�:�'::�.;.�:�! ::;:? bestowed upon Guatemalan terrorist Rigoberta Menchu in political warhead' aimed 1 1992, a Nobel for Ruiz would be a at Mexico and all of Central America-and ultimately at the \ Documentation United States itself, since the effect would be a dramatic I expansion of the insurgency that is feeding separatist tenden­ cies inside Mexico, and a furtheringof the Ruiz-Ied schism Excerpts from the speech which ican Congressman Ali within the Roman Catholic Church. Cancino Herrera delivered duringML his European tour.

What Indians? More than two-thirds of the truly i bigenOUS population fled At a press conference in Bonn on June 21, the two law­ from their supposed armed representatives during the 1994 makers explained that the EZLN's agenda of violence is uprising .... linked to the strategic importance of Chiapas for the develop­ The real leaders of the EZLN ar ' not exactly Indians. The ment of Mexico. "Chiapas has more than 15% of the potential best-known of them, so-called Sub omrnander Marcos, is a oil reserves of the world, 10% of the uranium, and more than Creole, who hails fromthe border w th the United States. The one-third of Mexico 's strategic raw materials and resources," chief of the guerrillas who took the town of Las Margaritas in 1 said Congressman Cancino Herrera(see Documentation). He January 1994 , was a nun named Jeannine, of French origin added that Chiapas "provides 70% of the electricity to Mexi­ and Canadian nationality. . . . 1 co City, and supplies electrical power to 22 other states. Regarding the cattlemen in Ciliapas, it is evident that About 80% of the country's hydro-power resources are con­ there is much generalizing going orl. Agriculture in southern centrated in Chiapas." Mexico has been in crisis for years, and a good portionof the The insurgents, conspicuously led by non-Indians, are population is dedicated to raising cattle. In such circum­ not out to defend the legitimate social and political needs of stances, the term "cattleman" is ery misleading, because Chiapas's indigenous population; instead, they want to drive many indigenous people, even som who were with the upris­ Mexico into a fratricidal war, splintering the nation and leav- ing, have been cattlemen ....

EIR July 7, 1995 International 37 In Chiapas, there are approximately 500 large-scale cat­ tlemen, those who have between 100 and 1,000 head of cattle; approximately 20 have more than 2,000 head of cattle, and a few have more than 5,000 head. The major proportion British intelligence of the cattlemen, more than 6,000, have 5-25 head of cattle. The last grouping has an annual income of between $300 and fo otprints on $2,500. But according to the propag anda, this sector is an �ubarak "oligarchy. " Another definitefactor in Chiapas is its religious compo­ assassination attempt sition. In real terms, t he majority of the indigenous people by Muriel Mirak-WeissQach areevangelicals who have stopped believing in the bishop of San Crist6bal. In the case of the Tzotzils, this is significant, because the great majority belong to the Orthodox Church. As soon as the news broke on Jun 26 that EgyptianPresident The bishop and his priests have no access to most indigenous Hosni Mubarak had narrowly eJ aped an assassination at­ communities. tempt in Addis Abeba, Ethiopia�f Lyndon LaRouche raised The Catholic Church has three dioceses in Chiapas; two the question, whether the attac� had been the work of an are against the armed movement, and only in San Crist6bal intelligence agency, intent not o� killing the Egyptian Presi­ has the participation of priests in clearly organizing the con­ dent, but on throwing a monke wrench into a series of flict been noted. political processes in the region,� and further targeting the Without a doubt, Bishop [Samuel] Ruiz is one of the nation of Sudan. Followup investijgations in the United States direct or indirectinstig ators of the war.On several occasions, and Europe provided ample information to back up nuns have been caught transportingar ms. The bishop himself LaRouche's thesis and implicate British intelligence involve­ chastises the guerrillasympathizers for their passivity. ment in the affair. There are three! levels on which the events In the [peace] talks of San Andres Larrainzar, Bishop should be analyzed. First, the ground level modus operandi Ruiz has been the voice of intransigence.. .. of the assailants; secondly, the limmediate context within The social demands of the EZLN are legitimate. . . . which it occurred; and thirdly, the broader political-strategic What no one agrees with, save a few special interests, is with context, viewed from a historical!perspective. the war, which will set back any solution to the problems for On the ground level, several disturbing aspects of the half a century. . . . operation raise serious questionsf Given that Mubarak was Now, the demands for a solution to the problems faced traveling in a heavily armored cat, why did the estimated 7- by the indigenous people, were changed for a political party , 9 assailants think they could achi�e their aim with Kalashni­ the PRD. The EZLN threatened to wage war if the PRD kov automatic weapons? If, as press accounts reported, the candidates-Amado Avendano and Irma Serrano---didn't assailants had heavy weaponry, igcluding grenade launchers win. The latter, as she admits in her book A Calzon Amarra­ and explosives, in the villa where they were housed as well do, made her fortune in illicit activities, including drug traf­ as in one of the two vehicles they iUsed in the attack, why did ficking. they not use them? There is a myth that needs to be eliminated: that of the Why did Mubarak, speaking to the press in Cairo on his indigenous cultures. It is said thatin Chiapas, the Indians are emergency return, give such an odd account of his security the "good guys," and the others are the bad ones. That's a situation? Mubarak was quoted in a June 26 bulletin of the way of manipUlating the truth. As anywhere else in the world, Egyptian embassy, saying the ci¢umstances were not usual there are some very good Indians, and good Mestizos also. on the ride from the airport into Addis Abeba. All his "per­ There areIndians who aredelinquen ts, just as there arewhites sonal security officers," he said, 'fwere put in one car, which and other racial groupings .... was rather suspicious." Mubarak continued, "In a blink of an What concerns us is that Chiapas has more than 15% of eye, they got out of the car an4 started firing back at the the potential oil reserves of the world, 10% of the uranium, attackers , gunning down three wlaile the rest of the attackers and more than one-third of Mexico's strategic raw materials fled." He added the curious comment, "Naturally, the attack­ and resources .... ers never expected to be fired at from our cars, perhaps they The guerrillas in Chiapas have no followers . Clearly, thought they were on a picnic. " they do have some supporters among the old Stalinist left in According to press accounts!, the gunmen opened fire the country. Communism . . . is waging one of itslast battles after stopping the three-car motorcade with ajeep. Men who in Chiapas. What is the worst, is that the militants from the had been inside the jeep, and others placed on rooftops, former Mexican Communist Party stay in the comfort and fired automatic weapons at the amnored car. Two Ethiopian security of their homes, away from the battle and without policemen and two assailants wete killed, whereas the other running any risk. seven or eight succeeded in escaping. Mubarak' scarimmedi-

38 International ElK July 7, 1995 ately returned to the nearby airport, where the President boarded a plane back to Cairo.

Target Sudan During his Cairo press conference, Mubarak initially re­ fused to point an accusing finger at any culprits. But, in response to insistent questions from the press regarding re­ ports of "Sudanese terrorists and weapons" found by Egyp­ tian authorities in southernEgypt days earlier, Mubarak then expressed his view that his assailants could have been of the same stripe. According to the official Egyptian government release of his remarks, "Asked if it were possible to conceive that the attackers and the weapons they used came from Sudan, he said yes: 'This is possible. Sudan is seeking rap­ prochement with us but the Turabi fr ont [referring to Suda­ nese religious leader Dr. Hassan Turabi] is working against us. I had a head of state visiting me last week who told me that Omar Al Bashir, the Sudanese President, told him that he doesn't have anything to do with Turabi. How could this happen? The state on one hand and Turabi on the other? This is the first time I hear something like this. Anyway the Sudanese people are good people and the anomalous situation Egyptian President Hosni Mubarak. By now is the creation of the regime and Hassan El Turabi British Sudan-bashing operation, he is is part of that regime.' " According to the version in the assassination. InternationalHerald Tribune on June 28, Mubarak said, "A group of Sudanese persons rented a villa on the road and gave Finally, Mubarak dragged former -')U".. all '''''; haven to the terrorists. Either this was under organization of Nimieri out of his seclusion, to the Sudanese government-and I think that it is unlikely­ against Turabi in connection with assassination attempt. or by Turabi and his group." While the Egyptian press fanned flames, the Egyptian From the first press reports, Sudan was identified as the military attacked a Sudanese unit the Egyptian-occupied prime suspect, although not a shred of evidence to support Sudanese region ofHalaib, killing station head and anoth­ this had been offered. Sudanese Minister of State Dr. Ghazi er police officer, and wounding . On June 29, Mubarak Salahuddin Attabani told the press in Khartoum on June 27 was quoted saying he had. ordered military to drive out that the accusations made by Egypt against Sudan "are under­ the 900 Sudanese soldiers from Hal , a virtual declaration standable, taking into consideration the shock at the moment, of war. but the continuation of the charges is unacceptable." Dr. Ghazi expressed dismay at the manner in which the Egyptian President was handling the affair, making accusations with­ The assassination attempt Mubarak was staged in out waiting for the results of Ethiopian investigations. the Ethiopian capital just before the YI",11111i". of the Organiza­ Sudanese calls for prudence were met in Cairo by reckless tion of African Unity summit. At the of state gathering, escalation. As widely reported in the press, Mubarak ap­ in addition to official agenda , several crucial issues peared publicly with 300Su danese opposition figures, based were to be discussed in informal First and fore- in Cairo. The Sudanese reportedly marched through the city, most, British subversion on the ,",V'I'''''''''''' demanding weapons for an insurrection against the Khartoum tackled. As EIR has documented, government. Mubarak, addressing the crowd, said that al­ seas Development Minister Lady though Egypt would not inter fere in the internal affairs of directing Ugandan dictator Yoweri Sudan, "if we wanted to, we could organize a coup d'etat in ties in Rwanda and Burundi, as Khartoum in ten days," according to the Paris daily Libera­ There are indications that Nigeria, tion. The gist of his televised remarks was that he supported planning to raise the British qUC�stllOrt the right of the opposition to overthrow Sudan's government. Most important, there could been a summit meeting His own governmenthad issued a threatening statement the between Mubarak and General ..High-level contacts day before , according to which it was determined to "annihi­ have taken place over the last between the two gov- late those financedand trained by foreign forces and by coun­ ernments, including at the foreign minister level, and, as tries aiming at undermining the national security of Egypt." both Egyptian and Sudanese sources have con-

EIR July 7, 1995 International 39 firmed, an understanding had been reached. Such a rap­ against Dr. Hassan Turabi. If at all, the piece could have prochement would have foiled historical British attempts to been prompted by EIR's June 9, 1995 Special Report on pit them against each other. Overcoming long-standing strife Sudan, which presented a radicaly different picture. But the between the two Nile Valley nations would have opened the message of the Economist is crystal clear: Mobilize forces to way to solving many of their burning economic problems overthrow the Sudanese government, target Dr. Turabi above and reaching an understanding within Egypt with the Islamist all else. opposition. Instead, it has been made to appear thatthe one British intelligence has a buming interest in eliminating was engaged in trying to assassinate the head of state of the Dr. Turabi. In order to unleash what British geopolitician other. Bernard Lewis coined the "clash of civilizations, " it is neces­ Algeria certainly would have been a topic of discussion sary to eliminate those Muslim intellectuals seeking a dia­ as well. Contacts between President Zeroual and representa­ logue with like-minded forces in the Christian West, to there­ tives of the Islamic Salvation Front (FIS) point toward a by paint all Muslims as "fundamentalist terrorists. " Turabi's negotiated solution to the civil war raging in that country. influence has been felt not only in Algeria, but also within Zeroual had reportedly discussed the perspectives for some the troubled Palestinian camp, where Harnas and Palestine accommodation with the FIS, in talks he held with Mubarak Liberation Organization leaders were to meet under the Suda­ in Cairo, a week before the OAU summit was to start. Al­ nese leader's sponsorship. In 1992, a serious assassination though the Egyptian view has not been made known, clearly attempt was mounted against him in the Ottawa, Canada any reconciliation within Algeria would have far-reaching airport, with the complicity of Canadian security forces. Now implications for Egypt. It is well known that Dr. Turabi, who British intelligence is calling for his overthrow in the pages has repeatedly offered his services to mediate in these and of the Economist. What better way to destabilize Sudan, and similar crises, enjoys enormous respect among Algerian and thus to snuff out its influence in the Islamic world, than to Egyptian Islamists. ring the countrywith hostile nations, and brand its leadership The other immediate neighbor of Sudan affected was "terrorist"? Ethiopia. The good relations which have existed between Britain's war against Sudan �oes back centuries, as our Addis Abeba and Khartoum have been very important in Sp ecial Reports documents. In its repeated attempts to elimi­ countering the destabilizing thrust emerging from Eritrea, nate an independent Sudan, the British oligarchy has always which recently broke away fromEthio pia. Both Ethiopia and tried to use Egypt, alternatively as its battering ram or its Eritrea are formally members of the IGAAD, which had Trojan Horse, as in the Anglo-Egyptian Condominium at the assumed responsibility for mediating in the British-backed close of the last century. London's consistent policyhas been war in southern Sudan against the government. Yet, Eritrea to prevent agreement between two sovereign states, Egypt hosted a conference just ten days prior to the assassination and Sudan, to squelch the enonnous economic potential the attempt, which gathered representatives from various Suda­ two together would realize. nese opposition groups, including John Garang's Sudanese Britain has also always counted on the cooperation of People's Liberation Army, the leading rebel formation fight­ manipulable Egyptian proxies. If the assassination attempt ing against the central Sudanese government. was indeed a British intelligence operation, the message it has sent to Mubarak is, he had better pursue confrontation, London 'Economist' shows Britain's hand in accordance with British poliqy. Ironically, as LaRouche A signal piece appearing in the London Economist just pointed out in his June 28 radio interview with "EIR Talks": two days prior to the attempt on Mubarak, reported exten­ "Mubarak, by consenting in the !past hours to go along with sively on the Eritrean-sponsoredconferenc e, and urged out­ the British on this Sudan-bashing operation, is actually set­ side forces to support the opposition. "America and Eu­ ting himself up for a real assassination." rope-and anyone else who cares to join in-ought to be What will happen inside Egypt is unclear. Mubarak could sending their diplomats to such meetings, to show their sup­ use the attempt on his life as a pretext for domestic crack­ port for change," said the British intelligence mouthpiece. downs against his opposition, as Nasser did in 1956, follow­ The article concluded with an explicit call to arm the insurrec­ ing a simulated attempt on his life. Prior to the attack, Mubar­ tion: "It may be necessary to make a harsh choice, and give ak had fueled massive opposition by passing a new press law the opposition whatever it needs to help remove Mr. Turabi" which makes it a crime, punishable by years in prison, to (emphasis added) . criticize the government. Not only the Islamist opposition, It is indeed the signal piece in the Economist which but virtually all professional associations in the country, in­ clinches the argument that British intelligence is the agency cluding representatives of the rollingparty , took to the streets most 'probably behind the assassination attempt. The article, to protest, in a show of force the likes of which Egypt has not "Islam's Dark Side: The Orwellian State of Sudan," had no seen in years . With growing internal opposition, any gamble ostensible occasion to be published. It is essentially a rehash Mubarak may try in a military confrontationwith Sudan, will of time-worn slanders against Sudan, and in particular backfire, and Egypt could explode.

40 International EIR July 7, 1995 their strategy to generate an unending streamof human rights cases against the military-whether "facts" bear out the accu­ sations or not. The amnesty, howe\ler, establishes that the Peruvian military will not be tried for �inning the war against Fujimori provokes Shining Path and the other terrorists. · Coming in the midst of an across-the-board campaign London's ire against the militaries of all Ibero-Am�rica on the same spuri­ ous "human rights" grounds, Londonj did not hide its displea­ by Sara Madueflo sure. John Illman, Great Britain's �bassador in Lima, at­ tacked the amnesty law for equating genuine crimes with "thought crimes." "One has to distinguish between persons On June 16, after a cabinet meeting which lasted into the early who have expressed their positions, theirpersonal ideas, and morning hours, Peru's President Alberto Fujimori signed a other criminals," he intoned. The �ondon Guardian criti­ law, passed by the Congress two days prior, which grants cized the "autocratic style" of Fujimori, demonstrated by amnesty to military, police, or civilian persons accused or such "authoritarian" measures as the promulgation of the convicted of acts "derived from or originating from actions, law, and warned that this "act, con�idered a concession to or as a consequence, of the fightagainst terrorism," for partic­ the military . . . endangers the recuperation of Peru's inter­ ipating in the coup attempt of November 1992, or for the national position." The latter, a not-S(>-v eiled threat that Lon­ crimes of disloyalty or offense to the nation and Armed don could again isolate Peru financiailly. Forces. U.S. State Departament spok€lsman Nicholas Bums The amnesty law was a skillful response of the Fujimori echoed the British line'on June 15, ctiticizing"the substance government to the brutal international pressures put on Peru of the amnesty law," as well as "th� peremptory manner in after its Supreme Military Tribunal upheld, on June 6, a which it was passed." Bums added 1jhat, with this, Fujimori lower court's conviction of Gen. Carlos Mauricio on charges "demonstrates to the world a lack of serious commitment to " of disloyalty and offense to the nation and Armed Forces, the protection of human rights. I based on public statements made during the January-Febru­ The Peruvian magazine Oiga reminded Fujimori in its ary border conflict with Ecuador. editorial on June 12 that some in London had raised death General Mauricio, as a top adviser to the British monar­ threats against him, citing the questlon which the Financial chy's defeated candidate for President of Peru, Javier Perez Times's Sally Bowen had recently iasked Fujimori: "What de Cuellar, was considered an "untouchable." Despite his would happen with Peru if the I presidential helicopter smashing defeat at the polls, Perez de Cuellar, a member of crashed, or if an assassin's bullet hit1its target?" the International Board of Prince Philip's World Wide Fund for Nature, former U.N. secretary general, and honorary National interests come first ! president of the Inter-American Dialogue, heads a political Fuj imori emphasized that the · amnesty law was passed front, the Union for Peru (UPP), run by the very "intellectu­ for the sake of "national reconciliati.,n," calling the law "the als" who relentlessly defended the terrorists while attacking best homage to those who fell in the fight against terrorism, the military during 12 years of war. The UPP's number one the members of the forces of order, lcivilians, peasants, stu­ campaign has been to paint the military as the enemy of dents, and also to the mistaken youtb who rose up against the peace, not the terrorists. State. . . . The amnesty passed, which does not justify, but In the days before Mauricio's appeal was heard, Amnesty leaves behind, occurs in the contex� . . . of laying certainly International declared him its "prisoner of conscience," de­ painful bases for true reconciliation.!" manding his "immediate and unconditional freedom." Sixty The head of Peru'sCongr ess, Victor Joy Way, added, retired U.S. military officers signed a letter containing the "Here, in Peru, nobody legislates a¢cording to what pleases same demand, while Perez de Cuellar named the general a the United States, the Washington Office on Latin America member of the Executive Committee of the UPP. [one of the most prominent non-go�mmental organizations Despite that, not only did Peru's highest military court defending terrorists' rights in the Americas], or Amnesty refuse to overturn his conviction, but it increased his sen­ International. We legislate for the wctll-beingof the country." tence, from 12 to 14 months in prison. The recently named archbishop of Ayacucho, Juan Luis Cipriani, endorsed the law, because it "aims to pacify, recon­ Fury in Great Britain cile, and bring tranqUility to Peruvilt-ns." He urged "that one But even though Mauricio and the other military enemies not react out of revenge," adding, ip what many considered of the Peruviangovernment have been freed, London and its a reference to Perez de Cuellar, "What I ask is moderation errand boys are livid. By freeing the officers accused of from the politicians, who appearmo�e to be seeking personal excessess in the anti-terrorist war, the amnesty law blocks promotion than truth and justice. " .

EIR July 7, 1995 International 41 Sovereignty is the crux of Russia's politicalcr isis by Rachel Douglas

When the leadership crisis in Russia flaredJune 21 with a no­ seizing this moment to stop ba¢king up the IMF's demands confidence vote by the State Duma (Parliament) in Prime for accelerated privatization and austerity in Russia, would Minister Viktor Chernomyrdin's government, one could not have an opportunity to change :their reputation as predators help but recall that the last great clash between the Executive and restore good will. and Legislative branches in Russia ended in tank and heavy artillery fire. That was on Oct. 4, 1993; thirteen days after DPR cites economic disa$ter President Boris Yeltsin abolished the elected Parliament of The small but influential parliamentary faction of the that era, the Supreme Soviet, Yeltsin-allied military units Democratic Party of Russia initiated the no-confidencevote . shelled its headquarters to break the body's resistance. Founded in 1990, the DPR today is led by Sergei Glazyev, This time, there is something even deeper at issue than chairman of its National Committee, and Yuri Malkin, chair­ the 1993 furor over the separation of powers and Yeltsin's man of the Political Council.: In September 1993, then­ lack of Constitutional authority to act as he did. The Duma's Minister of Foreign Economic, Relations Glazyev was the actions are not parliamentary politicking or merely a conflict only member of the government to quit in protest against between the branches of power. Rather, within many institu­ Yeltsin ' s abolition of the Constitution and the Parliament. tions of the Russian state and society as well as the Duma, Now he chairs the Duma's Committee on Economic Policy. there is a growing conviction that a point of no return for Other prominent figuresin the DPR parliamentaryfaction are Russia's future existence as a sovereign nation will be Konstantin Zatulin and the filmmakerStanislav Govorukhin, reached--or may already have been passed, some believe­ whose film and book The Great Criminal Revolution during 1995. documented the looting of Russia under cover of "reform" Among the decisive criteria for Russia to remain sover­ during 1992 and 1993 (see ElR, March 25 and July 15, eign are its food security (see EIR , June 30, and Documenta­ 1994). tion, below) and domestic control of the huge fossil fuels The June 21 vote was on the second no-confidence mo­ sector of the Russian economy, especiallythe gigantic natu­ tion launched by the DPR against the Chernomyrdincabinet, ral gas firm known as Gazprom, with which Chernomyrdin the first having failed to muster enough support several is personally associated. The organizers of the no-confidence months ago. In a May 11 artidle in Nezavisimaya Gazeta, motion explicitly addressed these matters . They also cited the Glazyev took his fellow deputieS to task for making the Duma government's prioritization of promises to the International a "government appendage." In thatpublished criticism, Gla­ Monetary Fund (IMF) over the national interest. zyev previewed the arguments he would make on the floorof Under the rules of Yeltsin's December 1993 Constitu­ the Duma in June (see Documtntation). The government's tion, a second no-confidence vote in the government, recent proclamation of economic stabilization, he predicted taken within the next three months (at this writing, it is in the Nezavisimaya article, would soon be followed by "the scheduled for July 1, amid furious government lobbying latest, this time probably really. final, ratchet in the collapse for a compromise), will be binding if it passes. The President of production-now not only industrial, but also of agri­ then would have to either appoint a new government, or culture. " dissolve the Duma and set new parliamentary elections for Glazyev challenged both the Duma and Yeltsin to October. change, implying that this was ppssible. "In 1994," he wrote, In either event, Russia would have the occasion for a big "the President and the parliamentary opposition sat by while shift in policy, away from the destructive course embarked our science-intensive industry was liquidated, and would not upon in 1991 under IMF tutelage. Western governments, by force this bungling government to resign. Will they be as

42 International EIR July 7, 1995 sanguine, while our domestic agriculture is bankrupted once the Chernomyrdin government have not been able to free and for all?" themselves. When members of the Communist Party of the Russian At a recent press conference, accordingI to a leading Federation group in the Duma attempted to piggyback a peti­ American specialist on Russian petrpleum� policy, Cherno­ tion to impeach Yeltsin, onto the no-confidencevote against myrdin denied that he personally h d shares of Gazprom. the government, it failed to gather the signatures of the 150 Nevertheless, the belief is making th rounds in Moscow that deputies required to put that question on the agenda. the name of the prime minister's po itical bloc, announced with fanfare in April, should be no Rossiya-Nash Dom, Privatization or pillaging? which means "Russia Is Our Home," but Rossiya- During the debate on the no-confidence vote, Glazyev Gmp'om . objected to "foreign advisers with their backers from the Russian government, [who] have put together multimillion fortunes over the past two years by reselling shares in Rus­ . sia's formerly state-owned enterprises." It is this activity, Documentation according to Moscow sources, which many Duma deputies I and other Russian leaders cannot forgive Chernomyrdin or I former privatization chief Anatoli Chubais. The fo llowing are excerpts of Duma Deputy Sergei Many large Russian firms , formerly the state-owned Glazyev's speech during the ·llalmel'lta,ry debate before giants of Soviet industry, have been privatized as joint-stock the vote of no confidence in the imler,nmpnt of the Russian companies during the past three years. Vladimir Polevanov, Federation, June 21, 1995. Glazyev the Duma's Com- who served a short term in charge of Russia's Committee for mittee on Economic Pdlicy and is of the National State Property before his open clash with Chernomyrdin led Committee of the Democratic Party Transcription to his dismissal in January, has reported that already, indus­ and translation are by Federal News . Subheads have trial plant and equipment worth $300-400 billion was sold been added. for only $5 billion. Most sensitive is the privatization of Gazprom, the Rus­ Esteemed representatives sian natural gas company. Fully privatized, Gazprom would of the people, I am speak­ be one of the largest, if not the single largest firm in the ing on behalf of those depu­ world. Estimates of the market value of its assets range from ties who share a common the $100billion stated by some western petroleum experts concern for the fate of our up to the figure of half a trillion dollars, including proven great and long-suffering reserves, cited by Moscow sources. Homeland, the fate of Rus­ The mammoth scale of Gazprom dates from the early sian culture and science, 1970s, when Soviet officials opted to invest the lion's share industry and agriculture, of available funds and foreign credits into building up the the physical and spiritual world's largest petroleum and natural gas industry and infra­ health of our people. structure . With the proceeds, the Soviet regime could finance In what vital area of life its military budget and buy grain abroad. By 1988, oil and has the present governmentachieved ve results? In eco­ gas sales accounted for some 80% of Soviet hard-currency nomics and finance?In social policy In nationalities policy? revenues. In crime control? In culture and In defense policy? The great projects to exploit the natural gas of west and In foreign policy? In all of these the results put us on northwest Siberia, such as the pipeline from Yamal peninsula the brink of a national disaster or . Among those who negotiated with Germany, were plagued with problems with­ signed a call for no confidence in in a decade of their commissioning, due to cost-cutting along chairs of the Duma committees. I the way. Several large explosions drew attention to these be given the floor so that we can difficulties in 1989. At that time, the boss of Gazprom was affairs in our country in a many-sided Viktor Chernomyrdin, appointed in 1985 during .Mikhail My task is to assess the results of Gorbachov's tenure as Soviet Communist Party chief. policy of the government. The natural gas industry remains one of Russia's prime Irresponsibility, incompetence, lies are the main fea- assets, and the suspicion of intent to enrich themselves and tures of the policy of the present '-'''V�''''''L of Ministers. From their associates from the resale of its shares (a portion of the beginning of last year we been hearing endless which are still state-owned; other packets, as Polevanov re­ statements of good resolutions, of \111a5Jll1al ) successes in ported in a televised interview in May, have been scooped economic stabilization and other talk on the part of the up by individual purchasers) is one from which members of au�horities. However, the projects Cabinet of Ministers

EIR July 7, 1995 International 43 are infinitely removed from reality. None of the govern­ producing agriCUltural machinery, this year may see the death ment's pledges in the past two years has been fulfilled. of many agricultural enterprises. Take the 1994 budget. It was a dismal failure and it was What we witness is not a transition to economic stabiliza­ almost one-third in the red. Take the presidential address tion, but a new phase in the strUctural crisis which is marked of 1994 which was supported by the State Duma as far as by a still deeper depression tham before. Its key elements are objectives of social and economic policy were concerned. the shedding of production capacity, growing unemploy­ None of its provisions have been fulfilled. ment, and plummeting real wages .. .. Take the government's commitments under the Agree­ Instead of a socially oriented market, the government's ment on Social Accord. No positive results can be reported economic policy has given us a colonial type economy which on any of its provisions. The present situation is very much produces almost exclusively raw materials taken out of the like that in the summer oflast year when an enlarged meeting country in exchange for consu,*ergoo ds. Socially speaking, of the government was told that economic stabilization had such a policy and economic strUcture spell a stratification of been achieved. This statement was made against the back­ society into socially hostile groups, and a dramatic growth ground of a record slump in industrial output and shortly of social tensions. Society is !falling into those who were ,, afterwards there was "Black Tuesday 1 and the new upsurge quick off the mark, have latchec!l on to the sources of national of inflation. rent and are making multi-million fortunes, those who cater Now once again we hear from the government leaders to the interests of foreign capital, and all the rest-the majori­ claims of success. And this at a time when real wages in the ty of whom are doomed to unemployment and loss of a first five months of this year dropped by 29%, and official livelihood. . . . The huge gap ih incomes between a handful unemployment almost doubled comparedwith the same peri­ of the very rich and the overwhdIming majority of the popula­ od last year. c tion creates an insoluble social problem. A direct result of the ecortomic policy is not only the No growth without investment impoverishment, but the degeneration of the majority of soci­ Every school student knows that therecan be no econom­ ety. Last year population shrank, through natural reasons, by ic growth without investment and increased demand. Only about 1 million people. Life expectancy is growing dramati­ the theoreticians from the Council of Ministers keep telling cally shorter. Socially caused I diseases have increased by us about the creation of prerequisites for economic growth several times by the past two years . against an unprecedented decline in capital investment and consumer demand. The drop of capital investment by almost The lack of a program 30% since the beginningof the year and the growing numbers We judge the record of the government not only on the of people living below the poverty line (to 45%) leave no strength of the last two years. the tragedy is not just that in chances for the creation of prerequisites of economic growth the last two years we lost one�quarter of the economic and in the near future. one-third of the industrial potential and have practically ru­ Contrary to the persistent statements of the government ined science-intensive industries, undermined the defense last fall about imminent stabilization of the economic situa­ capability and the possibilities bf a future economic growth. tion this year, that situation is fast deteriorating. Inflation Far worse is the fact that the ! government's new program continues at an intolerably high level. Although the rate of does not offer a complex of measures to take the country's industrial output decline has gone down to 5%, there is a economy out ofits present crisis. Moreover, the implementa­ clear trend for deindustrialization of the economy. Consumer tion of the government's guid�lines of social and economic goods production has dropped by 14%, and the output of policy provokes further declining output, deindustrializa­ many consumer durables has dropped by 30-40%. In light tion, and degradation of the economic structure. The expect­ industry, the slump was by 40% . Output has been growing ed fall in production and capiW investments which will in­ only in theextractive industriesoriented toward exports. crease by almost 5% comparedlwith last year will go beyond The hardest hit this year is agriculture. Already, from the level that makes it possible to maintain reproduction, the the results of the first quarter, the purchases of agricultural defense capability, and acceptable living standards for the produce have dropped by 30%. The populationsof cattle and population. areas under cultivation are dramatically shrinking. After de Our analysis shows that n�ne of the declared goals of facto liquidation of the production of agricultural machinery economic policy of the government will be implemented. and a dramatic worsening in the provision of chemicals for This holds for the goals declar¢d in the address of the Presi­ agriCUlture, crop yields and agricultural efficiency are fall­ dent at the beginning of this y¢ar. Instead of carrying out a ing. While last year saw the demise of a lot of enterprises structural maneuver to modemize industry on the basis of modem technologies, we see it� further degradation and prac­

1. Tuesday. Oct. 11. 1994. when the Russian ruble lost one-quarter of its tical destruction of the science�ntensive industry. Instead of value in one day. a rise in investment activity wd see a decline by almost one-

44 International EIR July 7, 1995 third. Instead of the growth of the scientific and industrial and the population, too,because theyhave kept their savings potential we see the potential disappearing. Instead of a tax in dollars. refonn we see a renunciation of tax refonn. Instead of pro­ There is another threatof thereplay of "Black Tuesday" tecting the internal market the government is undertaking a on the horizon. We do not see any plan that would avertthe commitment to the International Monetary Fund not to take threat of destabilization on the mon�tary market. We do not measures, well-tried measures to protect domestic pro­ see any plan for preventinganother tide of foreign-exchange ducers. speculation. We do not see any plaq for attracting additional Instead of putting in order the use of governmentproperty free rublefunds into the development of production. and finances we see a decision to disperse the government's share of stock in such property in order to speed up its sale 45 million paupers through the same procedures and by the same methods which The pauperizationof 45 millio� people and the prospect have already resulted in the sellout of governmentwealth at of one-third of our population goi.g hungry by the end of zero prices. the year, in tenns of per-capitaprotein consumption\ is an That the record ofthe governmentis unsatisfactory is not immediate result of the governmentis policy.. .. only our opinion. This is the conclusion of the parliamentary By having underestimated the €1Xpected inflationrate by hearings we held in April immediately after the government's 50% and thus having secureda covert source of revenue,the new program was adopted. This opinion is shared by the governmentis in no hurryto use thatmoney to meet socially leading economic institutions and analytical centers in the meaningful needs. Although the budget revenuetargets were country. We also speak for the domestic goods providers, overfulfilledin the firstquarter, the expenditures were almost the trade unions, and the employees who have long been 20% underfinanced. In particular, tjhe expenditures on gov­ calling on the governmentto resign. I think all our desks are ernment-supportedinvestment projqcts and defense contracts piled high with such demands which we receive from every amounted to less than 50% of the target; the expenditureson regionin the country . social measuresto less than 70%. : Meanwhile, the government w�s tryinghard to build up IMF promises kept and service their financialcommi�ents , thus creating their Dear colleagues, let me remind you that last fall when we own financialpyramid in the intereSjtsof privileged commer­ put forward the demand for a change in the economic policy cial structures. As a result, the shate of the servicing of the of the governmentin the interests of the domestic producers, government debt in budgetary eXPf!llditures is growing very our call was rejected, and concurrently, the governmentwas fast, thus creating an unbearable b�en for those who will negotiating with international organizations and adopted come to power and will have to deal;with those commitments their requirements which are the exact opposite of what was next year. I put forward by the domestic business community and produc­ They are trying to prove to us that the ruin of industry ers. The statement of the government and the Central Bank and agriculture and the pauperizatipn of the population are addressed to the [International]Monetary Fund which, unlike the inevitable costs of economic �fonn. This is a lie. The the budget, was strictly adhered to and is still adhered to, was main reason behind the high inflatiqn ratethis yearis not the clearly at odds with the interests of the domestic producers, issue of new money, but the pricing policies of the natural and our business community, because it envisaged a unilater­ monopolies. I can tell those who dq not knowit thatin April al commitment on the part of Russia not to apply universally alone the natural gas prices went ul!by 36%. Now it is clear accepted measures to protect domestic markets, a renuncia­ wherethe high inflationrates come :from, why energy prices tion of an active economic policy and a curtailment of invest­ are growing dramatically, and why po monetarypolicy mea­ ment programs .... sures can help check pricerises . Having decided against an independentmonetary policy , While 10% of the population � already starving and the government has actually become a hostage to those re­ while one out of three is impoveris�ed, there is no money in strictionswhich it assumed with regard to internationalinsti­ the budget to meet essential social n,eds, but foreignadvisers tutions. The governmentdoes not know what to do about the with their backers from the Russi� government have put ruble exchange rate today. Having violated the agreements together multi-million fortunes ov�r the past two years by that were concluded between the government and the Duma reselling shares in Russia's fonqerly state-owned enter­ at the time the budget was reviewed and having decided prises. Under the wing of [fonner:privatization chief] Mr. against reducing the ruble exchange rate in proportion to the inflation rate, which is about 8% a month today, the government did colossal damage to domestic economic 2. In a May II, 1995 article in Nezavisimafagazeta, Glazyevreported that 10% of Russians now, and an anticipated 30% by year's end, consume only agents, which we estimate at over 50 trillion rubles. The 26 grams (0.4 ounces) of animal protein dlch day, while a minimum 30 . exporters are suffering, the competitiveness of the domestic grams is required for a person to function. 'l!he average perdiem percapita industries has been hurt, commodity producers are suffering, animal protein consumption in Russi� is 37 grams (0.6 ounces).

EIR July 7, 1995 International 45 [Anatoli] Chubais, foreign advisers took advantage of their the Duma? ... privileged position as organizers of the privatization proce­ We should be afraid not of the dissolution of the State dures and themselves engaged in speculation by organizing Duma, but of the consequences of the economic policy that the sale abroad of shares of Russian enterprises, worth hun­ is being pursued by the government. . . . dreds of millions of dollars ....Under the laws of any so­ Esteemed colleagues, as a matter of fact, the fate of called civilized countrythis is a crime. For our government our country for years to come depends on us today. Either this is economic reform . . . . the destruction of the economy and society will continue, On balance, we can say that on the one hand there are a or we will try to put an end tb that mad self-destruction. few multi-millionaires who have within two years grabbed a Let us put our petty fears aside: Will they dissolve us or sizable slice of former governmentproperty in the extractive not, will they sign the law or not, or whom will we criticize industries, foreign speculators who have made huge fortunes at the time of the elections? Let tisremember our responsibil­ thanks to the good connections they have in our bodies of ity to the people, who in the elections unequivocally voted power. And on the other hand, there are 45 million paupers for changing socio-economic policy in favor of the popu­ and 15 million undernourished people, a massive growth of lation. crime and total corruption of the state apparatus .. At present everyone is getting ready for the elections, setting their sights on the year 1996. But we should realize The country's fate for years to come that the currentyear of 1995 is decisive in many respects. It Esteemed deputies to the State Duma. I think there is is this year that they are tryirtg to finish the recarving of no doubt in anybody's mind as to the kind of persons the property; it is this year that the colossal threat of the irrepara­ executives of our government are . They are not concerned ble destruction of the scientifit and industrial potential is about the impoverishment of the people, the devastation of looming large; it is this year 'that a depressive economic industry. They are not concerned about the prospect of fam­ structure may take shape and determine the cow;seof depres­ ine in the country as a result of the destruction of agriculture sion over decades to come. and the drop in the real incomes of the population. They look We still have a choice. We can wait for new victims, on calmly as the industrial and scientific potential is being getting used to the impotence and irresponsibility of the au­ ruined and the sources of future economic growth are disap­ thorities, as we have already got used to many things over pearing .. .. the past few years. Or else, we should at long last learn the But they are all too willing to offer privileges to foreign lesson and understand that the existing Executive branch, companies, to redistribute government property and fi­ impotent and incompetent, has become dangerous to our nances. I have no doubt that we are dealing with a puppet country. Life will sooner or later compel us to shake off policy which is being shaped and controlled by international slumber and come to our senses. Better sooner, and then organizations, which is pursued in the interests of the specu­ the costs of general sobering up will be lower. The present lative and foreign capital and selfish corporate gain. authorities are unable to do that, and that is why we arecalling To consolidate that policy and their influencethe govern­ for stopping the agony and for passing a no-confidence vote ment leaders now are creating their own pro-establishment on the government. party. In this way they have openlychallenged the law on the In conclusion, I will say that many well-wishers would civil service and the corresponding decree of the President like to present the Duma and oUr desire to see a responsible and the law on the government. governmentas a source of destabilization of the socio-politi­ The question is this: Why are we tolerating all that? We cal situation in the country. I: would like to answer those are tolerating the humiliation of the country and common attacks by rephrasing the well-known words of Stolypin. sense, the humiliation of the ·interests of the larger part of With an irresponsible government, we will be doomed to society. Don't we have any responsibility for everything that great upheavals and the ruin of Russia. The no-confidence is happening in the country? vote on the government is a courageous step, the only possi­ We see that a policy that is suicidal for the economy ble constitutional step of the State Duma toward overcoming and for society is being conducted, but that policy is very the paralysis and lack of will power of the executive. We beneficial to those who are pursuing it .. .. have nowhere to retreat. The · State Duma alone can stop But we also see a way out of the crisis. We know what this madness in our country. If we do not send the present needs to be done to overcome economic depression and to government packingand do not create opportunities for revis­ achieve real economic stabilization. We have a program that ing economic policy, no one will do that. contains a full set of measures that are necessary for initiating That is why, speaking on behalf of over 100 deputies who economic recovery and growth. have signed a statement of no-confidencein the government, The question is: What are we waiting for, and what are I urge you to display civic courage and responsibility, to we afraid of? Are we afraid of the President refusing to sign perform your civic duty and to pass the no-confidence vote the law on elections to the State Duma or of him dissolving , on the present cabinet.

46 International EIR July 7, 1995 point to outside support for such a trend. The more pessimistic scenario, i$ that an arrangement will be cobbled together, in the short to! medium term, between Major survive the usually irreconcilable Thatcheriies and the Labour Party Will led by Tony Blair. They would concur, that authoritarian, the sinking austerity-oriented, "post-welfare-state" policies must be put into effect, likely under a Blair-led regime. Under such condi­ tions, Britain would play an even more destabilizing global ToryTitanic ? role than it has played under the foreign policy direction of � by Mark Burdman outgoing Foreign Secretary Dougla Hurd. Recent days' mu­ tual praise of Thatcher and Blair, points to that possibility.

As the British Conservative Party's internal wars escalated 'We've already hit the iceberg' during the week of June 26, it did not go unnoticed, in circles It may well be that the attempts by the leaders of the that matter in London, how warmly Gennan Chancellor Hel­ United States, France, and Gennany to throw a lifeboat to mut Kohl and French President Jacques Chirac greetedbelea­ Major, are already too late. On Junt 26, one London source guered British Prime Minister John Major, when he arrived characterized what is happening: "You know, the situation for the Cannes summit of European Union leaders on June here in Britain is rather like the Titanic. I find all this talk 26. That perceptionwas reinforced, when host Chirac praised amusing, of appointing a new captain for the ship-after Major, during a June 27 press conference: "In the difficult we've already hit the iceberg! We ijitit some time ago, and position of Britain, one should not make more difficult the the ship has been sinking, but some people don't want to task of John Major, who embodies, with lots of elegance and realize it. The band still plays on, but the Titanic goes down." intelligence, an England which is, at the same time, modem Major's strategy has been one of desperation. On June and traditional." Chirac reported that he had intentionally 18, he returnedfrom the Group of Sevensummit in Halifax, kept items off the summit agenda that might have been sensi­ Nova Scotia, where questions about his domestic problems tive for a Major who is confrontinga massive challenge from had dominated his press conference. On his return to the the anti-European so-called "Euro-skeptics" in the Conserva­ U.K., the British press, led by thei Hollinger Corp.-owned tive Party. Kohl concurred, that all contentions had been London Sunday Telegraph on June 118,was filled with "sug­ avoided, that might have created domestic problems for "our gestions" that he might soon be resigning, or with editorials friend" Major. that he should step aside. I Observers stressthat Chirac , Kohl, and also U.S. Presi­ Under such conditions, Major attempted a maneuver that dent Bill Clinton will be hoping that Major prevails in the is being called the "suicide optiont or the "put up or shut 1 short-tenn, in his battle inside the Tories. up" ploy. On June 22, he resigned as party leader, using the This is not based on any great love for Major, who has threat that the Conservative Party would descend into chaos been likened to an empty suit of clothes. Rather, first, it would and be slaughtered in coming general elections, unless it be in the interest of the White House and the continental Euro­ stopped squabbling and rallied behind his leadership. He pean leaders to keep at bay the Thatcherite berserkers in the affinnedthat if he was not reelecte� as party head, he would Conservative Party who areleading the charge against Major. step aside as prime minister. Second, these western leaders would desire Britain to have a The next day, Hurd announced that he was resigning, government sufficiently weakened and malleable, that it effective the moment that whateverigovernmenttakes shape could only minimally obstruct plans for infrastructure devel­ in the coming days, carries out ares�uffleof the cabinet. The opment in Europe, and the refonnmeasures that are necessary source said that "by doing this, Hurd is signaling that he is to remedy what Chirac has called the "AIDS virus" of uncon­ leaving a sinking ship." trolledspeculation which is devastating the world economy. Then, over the June 24-25 weekend, rumors began to The most optimistic, but not necessarily likely scenario, circulate throughout Britain, that a member of Major's cabi­ is that Britain's turmoil will force into being a new notion net, Welsh Secretary John Redwood, would challenge Ma­ of political self-identity among segments of the elite and jor. According to reports , Redwood worked out an accom­ population in England, Scotland, and elsewhere, and that the modation with fonner Chancellor 0' the Exchequer Nonnan United Kingdom will break loose from the stranglehold of Lamont, whereby Lamont would drop his own plans for an the oligarchical "Venetian Party" that has controlled the anti-Major challenge. Lamont has, sought revenge against country for the past threecentur ies. This possibility becomes Major ever since he was sacked as 4:hancellor, when he was "thinkable," at a time when the global system that that oligar­ held responsible for the fiasco of �ritain's September 1992 chy directs from London, is in an end-phase historical crisis. withdrawal from the European Ex¢hange Rate Mechanism Chirac's praise of England in the indicated manner, might (ERM) . He has since become a dire(:torof N .M. Rothschilds

EIR July 7, 1995 International 47 merchant bank. It is certainly more than coincidence, that Worsthorne, in a May 21 London Sunday Telegraph com­ Redwood had also been with N.M. Rothschilds early in his mentary, argued that the impliementation of Rees-Mogg's career.That merchant house has played a key role in advising prescriptions would require a "fprm of authoritarianpolitics" the British and other governmentson measures to "privatize" so that "cruel belt-tightening [�d] bitter medicines" could be large segments of the economy. Both Redwood and Lamont "forced down the throats of body politics." The devastating are solid "Thatcherites." implications of such policies w�re otherwise exposed by EIR , On June 26, Redwood, with Lamont standing at his side, jn a review of a new book by �o Thatcherite "New Right" declared that he would be resigningfrom the Major cabinet ideologues (see EIR , June 30, p. 68). and mounting a challenge for the leadership. The situation as we write on June 28 is as follows: After Sir Henry and the twiligbt of the oligarchy Redwood's nomination is technically certified on June 29, The backdrop to the mouthings that Rees-Mogg typifies, the ballot for Conservative Party leader takes place on July and to the political intrigues noW takingplace in Britain, is an 4. To win, Major requires a majority of the 329 Tory parlia­ incredible density of highest-Iet el Club of the Isles activity in mentarians who are eligible to vote, and must also have 15% and aroundLondon at this time. more votes than his challenger. The vote is by secret ballot, On June 19, as theattacks 9n Major from within Britain giving greater scope for all sorts of intrigues. Under these were reachinga crescendo,'fhatcher was investedwith one of circumstances, abstentions become all-important; were there Britain'shighest chivalrichono� , the ofOrder the Garter.Lord to be a significantnumber of them, combined with a bloc of PeterCarrin gtonpresided overth� ceremony. The June 20Daily Redwood votes, he could be denied the required 165 figure. Telegraph depicted her in a colorphotograph , decked out in Should Major fail, there will be a second round of voting the costume of the Order, lookiqglike a pompous goose, while on July 11. His position will, in any case, have been so her husband, Sir Denis, lookeq laughingly on. undermined, that it is unlikely he would contend further Also on June 19, former U.S. Secretary of State Henry rounds. Other cabinet members could then jump in. London Kissinger and wife were the gu�sts of honor at a dinner hosted sources speak of an ensuing "battle of the Michaels," be­ by Hurd. The next day, Kiss$ger was dubbed, by Queen tween President of the Board of Trade Michael Heseltine, ElizabethII , "Honorary Knigh� Commander in the Most Dis­ regarded as a moderate on economic issues and relations tinguished Order of Saint ichael and Saint George with Europe, and Secretary of State for Employment Michael (KCMG)," an honor granted 'i�n recognition of Kissinger's Portillo, a hard-core Thatcherite. contribution toward Anglo-�merican relations," in the words of a June 13 BritishFo�ign Officepress release. Rees-Mogg's bloody drama Sir Henry was given a pl!lce of honor in the queen's Redwood himself was praised to the skies by former carriage, to attend theRoyal Ascot races. A Buckingham Prime Minister Baroness Margaret Thatcher, at the Washing­ Palace spokesmandeclared tha,tit was "most unusual" for an ton, D.C. National Press Club on June 26. She recalled that honorary knight to be so "hon<�red," especiallyas the Royal he had served as the director of her 10 Downing Street policy Ascot is the social event of tlhe season for Britain's high unit, during 1984-86. society. The June 21 International Herald Tribune ran a Redwood was also lauded by former London Times editor front-pagephoto of him in the carriage, accompanied by the Lord William Rees-Mogg, in a June 26 Times commentary. queen and Royal Consort Prinqe Philip. Looking everybit as In that piece, Rees-Mogg took a number of nasty digs -at ridiculous as Thatcher the day ljefore, Sir Henry was wearing Major, under such headings as "John Major Has Set in Mo­ a top hat, as was Philip. tion a Drama He Cannot Control. The Second Act Is About That evening, Kissinger was one of a multitude of guests To Begin." He likened Major to the main character in a 1713 invited to the wedding party o�Jemima Goldsmith, daughter play, Cato, by Joseph Addison, in which the Roman Cato of billionairewheeler-dealer Sir James Goldsmith, and Paki­ "commits suicide in Act Five." In the real-life drama now stani cricket star and playboy Iprran Khan. The partycontin­ unfolding, Major was losing control over the script, with the ued throughout the week of J�ne 26, as 1,300 invited titled "new facet of the plot" being the entry of "serious challenger" nobility and their political and financialretainers descended Redwood into the race. "The drama is beginning to get out on London for the wedding of Greek "Crown Prince"Pavlos of hand," his lordship stressed. "Most Conservatives would to American-bornheiress Marie-Chantal Miller, daughter of prefer the red meat on offer from Redwood, to Major's nut a British billionaire. I cutlets," he claimed. Redwood stands for "traditional values, But the mood in such circl�s may not be entirely upbeat. market economics, less government, and lower taxes." The Gotterdammerung atmosll'here prevailing in the higher Rees-Mogg is a chief spokesman for the Club of the Isles, echelons of the Conservative Party, reflects the twilight-of­ an elite grouping led by the British House of Windsor. He the-gods mood in an oligarchy that knows that the seeds of has repeatedly insisted in recent articles, that the "welfare its own destruction are contained in the rapidly accelerating state" must be dismantled. His partner in crime, Sir Peregrine process of disintegration of the global financialsyst em.

48 International EIR July 7, 1995 Italy at the crossroads

The "ConservativeRevolution " in Italy:fromthe NorthernLeag�e ' to "Clean Hands."C onclusionoj aseries by Claudio Celani.

Part I, in the June 23, 1995 issue, described how Italy has must be prevented from marrying terroni [derogative for been governedsince 1993 by unelected technocratsfrom the southerners], thus generating basUfd offspring." Mrs. For­ Banca d' Italia (except fo r the short interlude of TVmagnate colin was clearly an invented nam�. But the Gazzettino edi­ Silvio Berlusconi), whose aim is to so drastically weaken the tors, in publishing the letter, haq unleashed a hysterical power of the central State, as to make it possible to physically debate. dismember the Italian nation. When Umberto Bossi founded �e Lega Lombarda (Lom­ bard League), afterhaving been co�erted to "federalism" by The oligarchy creates the League the head of Unione Valdostaine (th� Val d' Aosta regionalist As we stated at the beginning, Mussolinian Fascism is party) Bruno Salvadori, his move(llent did not have much only one of the many jacobin populisms that the oligarchy political success and had to fight for survival. In 1986 the has used in history to gain and maintain its power. Liga Veneta kept Bossi from closin� shop with a 50-million­ The Northern League (Lega Nord) is a modem form of lira loan. The following year brou�t a qualitative leap: The this same phenomenon. Even if most of Italy's political Lombard League broke through in t/heprovinces of Bergamo forces have embraced issues and elements of the Conserva­ and Varese, north of Milan. A veryimportant player entered tive Revolution, the birth and the growth of the League is a thegame , helping to destroy the Le�gue 's political opponents case study for grasping how a jacobin movement can be through "corruption" scandals: the first"Clean Hands" opera­ created from nothing and increase its consensus by inducing tion, conducted in Bergamo by AntonioDi Pietro from 1981 mass psychosis in the population. to 1987. The League was formally born in the Veneto region in 1979, as a movement that claimed a territorial identity corres­ 'Clean hands' or black han.. s? ponding to the old Republic of Venice. The leaders of Liga Antonio Di Pietro was a young policeman of limited Veneta ("liga" is Venetian dialect for the Italian "lega," cultural background and a crude conception of law and order. league) believe in the special qualities of the Venetian peo­ His unorthodox methods of fightiing small-scale criminals ple, supposedly particularly skilled in trading and therefore brought him a modest success in Milan, where at a certain more able to produce wealth than inhabitants of other Italian point he decided to become a prosecutor. His idol was Fran­ regions. This ideology was picked up by centers such as the cesco Cossiga. When all of Italy1s magistrates decided to Cini Foundation (whose president until last year was the strike afterPresident Cossiga publiCly insulted them, Di Pie­ chairman of Olivetti Corporation), which organized meet­ tro was the only one who reported for work. ings in Venice in the 1980s in order to promote the rise of an Di Pietro was picked up by theiCossiga faction and used anti-State movement with the potential to grow on a mass as a dupe in the "Conservative Revolution." Bergamo was scale. Prosecutor Di Pietro's laboratory for experimenting with the To achieve that purpose, they needed two ingredients: methods he would later apply in Milan. Anti-corruption in­ racism against southern Italians (many of whom emigrated vestigations were used not so mu¢h to achieve justice, but to the North in the 1950s in search of jobs) and the character­ rather as part of a strategy whose main feature is a media ization of the ruling class as "corrupt and pro-South." The campaign to manipulate the attitudes of the population. The racist campaign started in 1983, when the Liga got 4% of the script is always the same: Since politicians take kickbacks votes in the political elections. from private companies in returnfor favoring them in bidding In January 1983, the Gazzettino di Venezia published a for public jobs, it is not hard to, catch a few of them in letter signed by a certain Maria Pia Forcolin, who wrote the act. In Bergamo, a daily newspaper, Bergamo Oggi, that the blood donated by southern Italians contaminated the regularly leaked "exclusive" infonnation on Di Pietro'sal­ Venetian race, because it comes from "inferior and degener­ leged secret investigations, and used them to support a cam­ ate races ." The letter went on to state that "Venetian women paign against "the political class" 'as a whole. The target of

EIR July 7, 1995 International 49 "The Northern League Cossiga, the highest authorityof the State who turned the State,formidable support in their recruitment can�naljm." Left : 1994 campaign posters in Milanfor the Northern League proclaim: "1994, The Dictatorship Falls; the North; Federalism at Hand, " and "There's a Revolution Finish." Right: Italy's Francesco Cossiga was backed by Bush at the White House in 1989, when both were I'r'·.tIl1pnt.< countries.

Di Pietro's investigations in Bergamo was the Socialist Party , He was allowed to marry into family of lawyer Arbace a very easy one since its leaders cultivated a public image of Mazzoleni, the former protege Francesco Carnelutti, the "arrogance of power." No wonder that in 1986 the League's attorneywho , as we reported in I of this article, smoothly votes in Bergamo skyrocketed. made the transition from out the reform of the Civil Bergamo, a city which has been under the oligarchical Code ordered under Mussolini 1941, to heading the law rule of the Republic of Venice for 300 years, has a long firm that handled the postwar IJ}J" U'''''' trials in Rome. The tradition of jacobinism as a form of social control. When Mazzoleni family belongs to s elite, together with Giuseppe Garibaldi started his Sicily expedition, in 1860, the Counts Pecori-Giraldi. Bergamo supplied the strongest contingent of "Red Shirts." In 1987 Di Pietro was tr",n<:f,3rr" rI to Milan. Thanks to a More than a century later, in the 1970s, when terrorist move­ , which gave extraordinary ments spread on a threatening scale in Italy, Bergamo was powers to prosecutors, "'''I.I

50 International EIR July 7, 1995 parties, and the courts, accusing all of them of being "cor­ political class. Di Pietro was helped in his investigation on rupt" and serving personal interests instead of the common illegal party financing by Kroll Associates, the so-called good. The NorthernLeague received from Cossiga, the high­ "Wall Street CIA." est authority of the State who turnedagainst the State, formi­ Former Turin city councilman Strgio Scarrone, in recon­ dable support in their recruitment campaign. structing the short experience of MARP(Movement for Pied­ Cossiga at the same time had a covert agreement with mont Regional Autonomy) which ; initiated a League-like the "Venetian" faction in the Communist Party, which had movement in Piedmont in the 1950$, recently stated: "What always seen in the Catholic Church and the Catholic party, did we lack in order to be successful? Scandals, Di Pietro, the Christian Democracy, their enemy. This faction was and Clean Hands." ready to support Di Pietro's operation aimed at the destruc­ tion of anti-communist political parties and won the majority Miglio, the guarantor for the League in the PCI, which in the meantime officially abandoned the Italian voters would not have votedfor a movement head­ name "communist" and called itself PDS (Democratic Left ed by a zombie such as Umberto Bossi just becauseof scan­ Party). Thus, the head of the Milan Court, leftist Saverio dals hitting established parties. You needed somebody to Borrelli, gave the green light to Di Pietro and created a pool of "guarantee" for Bossi. Here somt "notables" joined the three more prosecutors for him: Francesco Davigo, Gerardo League camp, to leave it afterwards, when it had played the d' Ambrosio, and Gherardo Colombo. role it was supposed to play. Prepared for months, Di Pietro's spectacular "Clean One such notable is Gianfranco Miglio, a formerinstruc­ Hands" operation started officially on Feb. 17, 1992, with tor at Milan's Catholic University and so-called constitution­ the arrest of Mario Chiesa, the manager of a Socialist Party­ al expert. Miglio joined Bossi in 1989 and elaborated the linked hospice. The real turning point came in the April 5 primitive secessionist League dem_gogy into the so-called political elections, when the Northern League reaped the "federalist project. " In 1994, once the firstphase of the"Con­ protest vote, fed by a real economic crisis but also by the servativeRevolution" was over and afterthe League,in order Cossiga-Clean Hands uproar. Bossi's League emerged as the to keep its popular base, shifted fr�m the alliance with the second party in northern Italy, and the firstparty in the major right-wing bloc into an alliance with the PDS, Miglio left urban centers of Milan, Pavia, Varese, Como, and Sondrio, Bossi with fanfare. plus tens of minor cities. Before elaborating his project . of "federalist constitu­ Supported by "public opinion" and the League vote, in tion," with a Switzerland-like Italy� divided into three can­ the following months the Clean Hands operation demolished tons, Miglio dreamed of a "Decider" who could suspend the anti-communist parties. About 2,000 politicians, local the Constitution for ten years, during which Pinochet-like administrators , and managers were arrested in one year. Out sacrifices would be foisted on the Italians. Today, Miglio of all this, only one trial was held, concerning illegal financ­ cultivates his image of cruel punisher of "corruption," but he ing of the Christian Democracy and the Socialist Party com­ started his career with a person who!became legendary asthe ing from the ENI and Montedison corporations, for which king of the corrupt: Eugenio Cefis. Cefis, a partisan with the two party leaders, Bettino Craxi and Amaldo Forlani, British-controlled guerrilla formations during World WarII , were held responsible. was put on top of ENI, the Italian 'state oil company, after Clean Hands is a media operation. As in Bergamo, Di the founder, Enrico Mattei, was assassinated -in 1962. Cefis Pietro et al. are assisted by a bevy of press and television brought back Miglio (who had already been at ENI and was journalists. Especially the daily Corriere della Sera and the forced to leave because of disagreements with Mattei), with weekly Espresso, belonging respectively to the Agnelli and the task of re-educating the ENI malllagers. Re-educate means the Caracciolo groups, played a key role in leaking records that they should start to believe n6t in national welfare as of interrogations of politicians, which were obviously given Mattei believed, but simply in "profit." That is exactly the to them by Di Pietro's office. Nobody ever cared to investi­ beginning of corruption. Today, afterhaving contributed to gate how the press systematically got secret information from corruptingthe State, Miglio, an Anglophile by training and the prosecutor's office. Instead, the political class underwent a philosophical follower of Thomas Hobbes, wants to abolish a trial-by-media and every politician or public manager in­ it. A book by journalist Giorgio Ferrari tells an interesting vestigated was forced to resign under pressure of "public episode: In spring 1945 , when Winston Churchill visited opinion," even before being indicted. LakeComo , in search ofthe famou$ Mussolini papers where Another role was played by the newspaper L'lndipenden­ allegedly his own letters to the Duce'Were kept, he was hosted te . Its publisher was Vittorio Feltri, the same publisher of the at Villa Miglio, in the village of Damaso. Of course, for Italy newspaper Bergamo Oggi during Di Pietro's stay in Berga­ the war was finished, but the country was still full of armed mo. L'lndipendente ran the most demagogic coverage, sup­ Fascists. Therefore Churchill did oot choose any villa. The porting Northern League campaigns against centralism and Miglios must have belonged to a safe circle. Miglio's father using Di Pietro's operation to call for dumping the whole had bought the house from the sister of Sydney Sonnino,

EIR July 7, 1995 International 51 a famous, early 20th-century politician whose mother was publishing house, led by occultist Roberto Calasso and born British, and a cult object for Italy's Anglophile free-marke­ out of the salon of the famou� Anglophile banker Raffaele teers (and the Cossiga group to which Miglio belongs), to be Mattioli, the founder of Cucci�' s Mediobanca. counterposed to the "Statist" tradition of Giovanni Giolitti. One of Adelphi's specialtiq; is the "left-wing"interpreta­ Contrary to Giolitti, who wanted to keep Italy neutral in tion of Nietzsche. Adelphi pul>Iished Nietzsche's complete 1915, Sonnino signed, as Italian foreign minister, the Triple works in Italian. In his book Gli Adelphi della Dissoluzione, Entente with Britain, and gave Italy 1 million deaths. author Maurizio Blondet demonstrates that Adelphi's cultur­ Besides Miglio, other important academic backing for al message is openly satanist.IBlondet interviews Cacciari, the League came from the Thatcherite American Edward who declares that he hopes forithe coming of the Antichrist. Luttwak, from Georgetown University'S Angelo Codevilla, "The Pope must stop being the Kathecon," Cacciari bursts and from British establishment mouthpieces such as The out, explaining that Kathecon is "what holds back the Anti­ Economist. christfrom its fullmanifestatidn ." Coherent with his nihilist Luttwak,author of a book entitled Technique of the Coup philosophy, Cacciari calls (lik� the League) for a Constitu­ d' Etat, is promoted by circles like the Sella Foundation of tional Convention to rewrite! Italy's Constitution in, of Monteluce, led by a descendant of Count Quintino Sella. course, a "federalist" approach. And like his right-wing Sella was the prime minister under whom, in 1870, the Pied­ American colleague Newt Gin$rich, leftist Cacciari believes montese conquered the Papal State and entered Rome. He in the "Third Wave," the corping of Ii cybernetic society was the firstbudget-cutter in the history of united Italy. Count which will replace the industriW one, and the disappearance Maurizio Sella, who divides his time between Milan and of the working class. London, is the owner of the largest single-family-owned bank in Italy, Banca Sella. Sella invited Luttwak to hold an The Berlusconi phenom�non anti-State conference at his foundation, introducing him as Although media magnate Shvio Berlusconi won the 1994 an adviser to President Clinton. In the same way, Luttwak political elections because he �ppeared to many as the most was publicized by L' Espresso, which ran two of his pro­ reasonable alternative to the �ague's irrationalism and the League articles in August 1993. PDS-supported "prosecutors' j.cobinism," the movement he Even the son of the last King of Italy, Victor Emmanuel founded (Forza Italia) carries the same self-destructive germ, IV, declared on March 17, 1993, to the daily L'lndipendente: called populism. "Our country is undergoing a terrible crisis . . . the Leagues Berlusconi tried to ride th� free-market mania and the are the only clean and modem thing. They are the normal League's fiscalrevolt, at the srupe time imposing his personal popular reaction to the clique of Italian politicians built up to imprint and slowing down privatization. This irked the City cheat the people." of London. But Berlusconi increased an aspect of the Conser­ Today Count Sella is no longer a Leaguist but he heads vative Revolution inauguratedi by Cossiga, a populist style the "Freedoms Association" (Associazione per Ie LibertA) which puts more emphasis on the emotional relations be­ where he collected members of Parliament belonging to all tween the "leader" and the population, than on the representa­ so-called moderate parties. The aim is to prepare the future tive system formed by Parliam�nt and the political parties. right-wing Liberal Party, to counterpose to the left-wingLib­ Berlusconi plays into the manipUlation of public opinion eral Party. by identifying his enemies as ''communism.'' To state that a PDS-supported government is communism is ridiculous. As The leftist conservative revolution a matter of fact, the PDS suppcl>rtedboth the Ciampi and the Bossi's Northern League is now allied with the "Left," Dini governments, which are not communist but Internation­ composed of the PDS and what the Italian press calls "bush­ al Monetary Fund governments. Berlusconi, instead of es," an archipelagoof smaller parties including the left-wing exposing the alliance between the IMF and the post-commu­ split from the former Christian Democracy. Although the nists, accuses the "communists1' of running the jacobin prose­ alliance has a tactical nature and, as things now stand, the cutors' part¥. There is a bit of truth in all he says, but the end allies will try to kill each other the first chance they have, result is false. In the present si�ation, the only alternative is inside the PDS there is a strong "Conservative Revolution" a development perspective, wl)ich means war with the IMF faction which is pushing for the League program. and the City of London, to which the non-jacobin faction in Head of this faction is the mayor of Venice, Massimo the PDS could also be recruitdd. In the 1994 election cam­ Cacciari. A candidate to lead the future left-wing Liberal paign, Berlusconi promisedto �reate 2 million jobs and went Party, otherwise called Democratic Party, Cacciari has been so far as to publish a program of large infrastructuralpro jects a follower of the proto-Nazi philosopher Friedrich Nietzsche in his newspaper, including the bridge over the Strait of since 1968 when, around the magazine QuaderniRossi, he Messina. But the most pro�nent Forza Italia economic participated in the creation of Italy's drug-sex-rock move­ spokesman is Antonio MartinQ, the only Italian member of ment. Today, Cacciari is behind a club around the Adelphi the Mont Pelerin Society.

52 International EIR July 7, 1995 by Tore Fredin Northern Flank

Bildt aids the British in the Balkans right, is prepared to pay any price for The Swedish nobilityis always eager to do London's bidding, no being one of th¢ chosen, as a junior partner in the game of British geopol­ matter the cost. itics. Bildt's persJnal background is a textbook exampJe of how one works oneself up in th¢ Swedish nomenkla­ nyone who had any illusions that Bildt arrogantly claimed that the tura as an apparatchik. As a young theA new European Union mediator in group of journalists who heard Stol­ politician in the : conservative student the Balkan war, the former Swedish tenberg, had all signed a statement movement, Bildt became the personal prime minister, conservative Carl saying that Stoltenberg had been secretary of con$erative leader Goesta Bildt, would mean an end to the Brit­ wrongly quoted in the firstplace . That Bohman in the Jarly 1970s. Bohman ish pro-Serbian policy, should consid­ created an uproar among the journal­ was the party l,ader for the moder­ er Bildt's reaction to the United Na­ ists, who denied ever having signed ates. Bildt ended up marrying Boh­ tions' mediator, the former such a statement. That forced Bildt to man's daughter, land became the party Norwegian Social Democratic For­ back down, saying that there had been leader in 1985. ! eign Minister Thorvald Stoltenberg's some misunderstanding concerning During the �arly 1980s, he was pro-Serbian remarks about so-called the signed statement. But Bildt has groomed as the 1 conservative answer ethnic cleansing, i.e., genocide car­ shown no intention of making a public to the ever-domirant OlafPalme, par­ ried out by the Serbs in their war of apology to Bosnian Ambassador ticularly in area$ of international and aggression against Bosnia. Serdarvic. security policy ,I and that is still re­ Stoltenberg said the following to a This incident is rather telling , con­ flected in his mfntality. Bildt is in a group of Norwegian journalists: "Eth­ cerning who Carl Bildt is, and also certain way just a copy of Palme. nic conflict-I do not believe that­ helps explain why he, as a "neutral" Bildt was launcqed as the speed-read­ they are all Serbs, or are they not? The Swede, has been sent in to clean up ing political wh*-kid, who already in Muslims are Serbs converted to Islam, the mess that the two British lords, his thirties, h�d an international and many of them who are clothed as David Owen and Peter Carrington, reputation as someone who spoke reg­ and call themselves Croats, they are had left behind. In his fu nction as a ularly with the Ibig European politi­ also Serbs. " "neutral" Swede covering up for the cians. He is sai� to be one of German This stupid remark shows once British, Bildt is not the firstone doing Chancellor Helmut Kohl's favorite again the cynical outlook of the So­ so in the 50-year history of the United discussion partm!rs. He talks to Kohl cialist International, which should Nations. at least once a �eek. In that respect, surprise no one. In key U.N. policy areas, such as he may be even more important to the Izet Serdarvic, the Bosnian am­ family planning, Sweden has supplied British. bassador to the Nordic countries, re­ the United Nations with an endless Two questiqns remain to be an­ sponded that "Stoltenberg, by this re­ supply of bureaucrats. Sweden has swered. First, \fho burned Bildt and mark, had become a liability to the also supplied an impressive number of exposed the British scenario by trick­ mediation process, and therefore Stol­ international mediators since the end ing him into bel�ving that there exist­ tenberg should resign." Serdarvic told of World War II. The three most ed a signed statement by these jour­ the Oslo newspaper Arbeiterbladet on important and best known ended up nalists, and w� didn't he check it June 24, "It would be better that Carl being killed. First, Count Folke out before he made his arrogant state­ Bildt continued on his own." Bernadotte, mediated in 1948 in the ment to the media? What did the "neutral" Swede Middle East; second, U.N. Secretary The second question is, will Bildt Bildt do? Bildt's response was that General Dag HammarskjOld, in 1961 and "neutral" S�edes once more be­ Ambassador Serdarvic had become a in the conflict in the Congo; and, come the stupid v.awns to be sacrificed liability to his country, and that he, third, Prime Minister Olaf Palme, in by the British in their geopolitical Bildt, intended to bring this up with 1986 in the Iran-Iraq War. History chess game, d Sregarding that Carl the Bosnian government, through its viewed in that light tells a grim Bildt, Olaf P me, Dag Hammar­ foreign minister. picture and also tells us that the Swed­ skjOld, and Fol� e Bernadotte all are As if this insult were not enough, ish political establishment, left or part of the Swedish nobility?

EIR July 7, 1995 International 53 InternationalIntelligence

of the human person." His remarks were in the United States. Crkovic presented a British worried about published in Origins, CNS Documentary paper by Lyndon LaRouche on his creative Vatican-Islamic alliance Service, on June 22. discovery,· which he has translated into the He said the term "solidarity" is helpful Croatian language. The British oligarchy is very concernedthat for grasping the church's role at these meet­ ings and that this should be contrasted with the "Vatican and Islamic countries" are be­ ' the "individualist" and "isolationist" views coming locked into a "bitter dispute" with Colom'/JianMSIA leader the other participants at the upcoming U.N. which predominated at Cairo and Copen­ Women's Conference in Beijing. An article hagen. receives death threat in the June 28 Times of London entitled "Anti-Abortion Drive Threatens U.N. On June 27, Maximiliano Londono Penilla, Women's Summit," reported that British Schiller Institute president <:>f the Colombian chapter of the politicians and aid agencies fear that the lbero-Am�rican Solidarity Movement Vatican's insistence on an emphasis on delegation in Croatia (MSIA), Ilceived a death threat in Bogota. motherhood rather than sexual rights "could The threat; the third made against Londono undermine the spirit of the Peking [Beijing] Michael Liebig from EIR Wiesbaden (Ger­ in the spa� of a month, was transmitted by gathering and even reverse the achieve­ many) and Elke Fimmen from the Schiller phone at approximately 8:15 p.m., to his ments of the Cairo conferencelast year. " Institute visited the Croatian city of Split in home. A dlale voice asked if "this were the The Times quoted Baroness Gould of mid-June. home of Maximiliano Londono." He then Potternewton, a member of the Council of Liebig spoke in the public meeting hall threatened, "Tell him to shut up. Or doesn't Europe's delegation to the conference, "I of the Liberal Party in Split, on "The Real he care abQut his wife and children?" think there will be a really fierceand serious Motives of British Politics in the Balkans," A wee� earlier the MSIA leader had re­ debate about family planning and abortions to about 60members of the city's elite. Both ceived an�ther threat by mail. It consisted . . . which could undermine all the work the British and the German honorary consul of a book (Ifcondolences known in Colom­ done at Cairo." Referring to the Vatican's attended the meeting, as well as Split radio bia as sup-agio, lamenting his death. Pre­ attempts to get the words "the right to life and a journalistfrom Slobodna Dalmacija. viously, iQ the early morninghours of April itself' inserted in a section of the document Liebig explained that there does not ex­ 23, an anonymous caller delivered a threat on the rights of girls, Baroness Gould said: ist something called "the West." Instead, by phone: "Tell Maximiliano Londono Pen­ "We have a real battle to make sure those there always was a cleftbetween continental illa to watch out, because we're going to words do not get in the document. The fight Europe and Great Britain, "that Protestant make ground meat out of him." won't stop at Peking-when we come back, island out in the Atlantic," as Charles de In a press release issued June 28, the the challenge is how we implement and in­ Gaulle used to call it. He went through the MSIA rep0rted that so far this year, a dozen terpret the plan." features of British rule, going back to Ven­ incidents �ave directly threatened the exis­ An aide to Baroness Lynda Chalker of ice, which had also strongly dominated that tence of the organization, and its leaders Wallesey, Overseas Development Minister part of the Adriatic Sea. He explained why and meml:lers in Colombia. These include (i.e., Minister for the British Empire), said in 1989 the British had nightmares when burglaries i and assaults on members and that Chalker "will make every effort to as­ communism collapsed and why they acted their homes, attempted robbery of vehicles, sure that the language of Cairo will not be to set the Balkans war into motion. Devel­ and failed attempts to breakinto the MSIA' s undermined." oping the fundamental riftbetween Clinton office. Meanwhile, Msgr. Diarmuid Martin, and the British, the change in French poli­ The C$lpaign to silence the MSIA in­ secretary of thePontifical Council for Jus­ tics, and the defeats for the British on the tensified � month earlier when Colombia's tice and Peace and head of the Vatican's financial front, he concluded that this de­ National $Iectoral Council decided to re­ delegations to the U.N.' s conferences at fines a much better chance in the future for voke the �SIA's status as a legally consti­ Cairo and Copenhagen, as well as among both Croatia and Bosnia to act than ever tuted org�ization. the leadership at the New York prepatory before . The MSIA has distinguished itself in­ committee for Beijing, told the Catholic In the Croatian capital of Zagreb, a side and oUtside Colombia as the most im­ Press Association convention in Los Schiller Institute seminar was held, where placable vbice against the drug trade and its Angeles on June 2 that the Vatican "does Liebig was joined by Dr. Josef Miklosko terrorist allies. Over the past two months, in not go to conferences to cause controversy," fromSlovakia and Croatian-Canadian Steve which the issue of the battle against the Cali as CNN charged at Cairo, but to be a "wit­ Crkovic. Before about 40 people. Dr. drug-trafficking cartel has shaped the deci­ ness to the fact that social policy can only Miklosko appealed for help to reverse the sions of Colombian President Ernesto be based on respect for an integral vision witchhunt against the LaRouche movement SamperPi;zano , Londono Penilla has issued

54 International EIR July 7, 1995 Bril1lY

• BURMA will receive upgraded anti-drug cooperationfrom the U.S., Lee Brown, director of the White House Officeof DrugControl Policy, various concreteprop osals, based on Amer­ give a whole cycle of lectures," said the announced on June 21. The June 22 ican statesman Lyndon H. LaRouche's Zavtra article, "should have attracted the Los Angeles Times story says the thinking and program to definitively eradi­ attention of all our strategicopposition [peo­ i U.S. holds tqat. Burma is the single cate drug traffickingand narco-terrorism. ple 1, who are genuinely interested in search­ largest source of heroinand opium in Londono stated: "Should anything hap­ ing for alternative pathsof development." Zavtra the world, laJIgely attributed to war­ pento me or my family members or associ­ is thesuccessor of Den (Day), the lordKhun Sa hose operationshave ates as a resultof this escalating harassment National Salvation Front-linked newspaper been the targ t of a recent full-scale and threats, this will have profound national shut down in October 1993. Apart from its [ Zavtra offensive by urma's military gov­ and internationalreper cussions, in terms of political affiliation, has become ernment. measuring the real political will of the widely read and respected in Russia as a Sampergovernment to fight against narco­ source of political intelligence and criticism • A PALAqE COUP took place in terrorism. Let me reiterate that I trust that of economic policy. the Persian Gulf state of Qatar on President Samper will give instructions to June 27, with the son of monarch the appropriate security agencies, all of Sheik Chalifa Bin Hamad Al-Thani which have received detailed reports on taking power.• Qatar has beenplaying these threats, to insure that the MSIA can Red-Green alliance a mediating tole between Iraq and freelycarry out its political activities." set back in Frankfurt other Arab suttes.

In spite of combined efforts of Germany's • UGAND.... N dictator Yoweri Moscow newspaper Social Democrats (SPD) and the Greens Museveni, w�o runs threats against (who did not even present a candidate of neighboring !4.enya, Burundi, Sudan, highlights LaRouche their own), their candidate, incumbent and Zaire oni behalf of the British, Mayor Andreas von Schoeler lost the June is displaying tus politicalweakn ess. "Lyndon LaRouche in Moscow" was the 25 elections in Frankfurt am Main. Von The constitu¢nt assembly, mostly headline of a page 2 article in the issue of Schoeler received only 45.9% of the vote Museveni sto�ges, on June 20 reject­ the Moscow newspaper Zavtra(Tomo"ow) against his Christian Democratic chal­ ed any immediatereturn to multi-par­ for the second week in June. Author A. Ba­ lenger, Petra Roth, who won with 51.9%. ty democracy and ruled out multi­ turin summarized one of LaRouche's public Von Schoeler's SPD and the Greens still party election& for at least fiveyears. appearances in the Russian capital the week hold the majority of seats in the municipal I of June 5, with an emphasis on "the huge parliament of Frankfurt, which is up for vote • 'A VVEN�,' the Milan Catho­ 'bubble' ('pyramid') of financial deriva­ in spring 1997. Early mid-term elections lic paper, ran an article on June 24 tives, ready to pop now. " were called because several SPD members exposing the 40mplicity between the Baturin provided his own gloss on voted against a Green party candidate drug cartel and the permanent high LaRouche's briefing: "The intellectual elite pushed by von Schoeler for a key municipal officials at the U.S. Department of in the West was never of one mind .... post. In a fit of pique, von Schoeler called Justice. The �cle taigets Michael From time to time, political mobilizations of these dissidents "pigs" and called elections Abbell and � cohortJohn Keeney, the economy, connected with wars or crises, for mayor, the firstby directvote. among those jpentifiedin EIR ' s June made it possible to concentrate resources in A catalyst in the elections was the candi­ 30 Special Rep ort on the overdue promising long-term directions, to carryout dacy of Michael Weissbach, an ally of Lyn­ DOJcleanup. I a structural maneuver, to raise the overall don LaRouche. He defined the usurious efficiencyof the economy. But then control Frankfurt-based bankers and their interna­ • BENAZII,l BHUTIO, the Paki­ revertedto the financialoligarchy , the polit­ tional monetarist collaborators, the Greens, stani premier: will ask the British ical elites were corrupted . . . growth rates and the organized crime networks as the en­ government il they intend to permit fell." emy in the campaign. Elements of that were self-exiled MQM leader Altaf Hus­ The latest survival ploy ofthe oligarchy, at least verbally used also by Roth. sain "to use their territory for inciting Baturin elaborated, is the "Conservative The high voter turnout,55.8%, and the an armedins�gency in Karachi," she Revolution" of Karl Popper and Friedrich parallel erosion of the SPD's electoral base, said in an in1lerview with Voice of von Hayek, the ideology of which was de­ shows that voters wanted to oust von Germany. Th� MQM has promoted veloped by the Club of Rome with its no­ Schoeler. He had been a longtime enemy drug-gang warfare in Karachi. Her tions of "limits to growth" and "post-indus­ of the LaRouche movement in Germany, remarks wereh:ported June 27 in the trialism." along with his wife, Ulrike Holler, a senior Times of Indid. LaRouche's presence in Moscow "to editor at the Hesse state radio.

EIR July 7, 1995 International 55 �TIillInvestigation

Kevorkian's victims needed medicalscience , noti suicide

by Linda Everett

In late April, the u.s. Supreme Court rejected without com­ for "death with dignity ," is b Sed on lies that have polluted ment petitions to hear the first two appeals in "physician­ not only most of society, b j t the ranks of medical prac­ assisted suicide" cases to reach the nation's highest court. titioners as well. Instead of a society that once mandated an The first case was brought by Jack Kevorkian, the Michigan era of man-made medical mir_cles, today we see a variation psychopath responsible for the deaths of 23 known victims; of the "invasion of the body smUchers"--exceptit 's the popu­ the other, by the American Civil Liberties Union of Michigan lation's use of reason that is! snatched first, leaving them on behalf of two terminally ill patients who want a doctor's mouthing Kevorkian's mantra: "Nothing else can be done. help to kill themselves. The high court's refusal to hear the There is no hope-death is th, only answer." cases forestalls, only momentarily, a national policy that So, instead of the latest trFatments that medical science would establish some variation of direct killing of sick, elder­ could offer, Kevorkian' s vic�ms chose to believe a pack of ly, and mentally ill individuals as an accepted "medical" lies. I practice. That policy, which Americans increasingly defend I as "a patient's right," is exactly the same Nazi protocol that One phone call might h�ve saved this life we fought to defeat in World War II-the 50th anniversary Consider the fate of Md. Margaret Garrish, 72, of of whose defeat we commemorated this year. Royal Oak, Michigan, who died on Nov. 26, 1994 after How is it, that, in those 50 short years, Americans have inhaling carbon monoxide �ugh Kevorkian's portable gas come to clamor for the legal right to die by carbon monoxide chamber. This tragic murder,lorchestrated by Kevorkian at­ poisoning under Dr. Death's gas mask-an updated version torney Geoffrey Fieger, expo es the depth of depravity and of Nazi poison gas "baths"? sheer hatred of medical scienqe� involved. Less than a generation ago, we, as a nation, recognized Garrish had osteoporosis� rheumatoid arthritis, and pe­ the value of each individual life and mobilized in a mission ripheral vascular disease, with partial amputation of both to put men on the Moon and to provide the most advanced legs. Kevorkian, who had hi� medical license suspended in medical capabilities possible for the world's people. Today, both California and Michigap, said Garrish had been his Americans have largely shrugged off that history of responsi­ patient for two years. His treatment consisted of videotaping bility and commitment to their fellow citizens, to endorse a Garrish, focusing the camera IOn the stumps of her legs, and national medical "protocol" cooked up by the psychopath prompting her to tell about h� pain; how her doctor refused Kevorkian , who, like a satanist, sees all that is "good" begin­ to give her pain medication; �d how, unless a doctor gave ning with the end of human life. After all, this is the ghoul her help, she would commit s�icide. Afterher plea was tele­ who wants to auction off human organs to the highest bidder vised on the nightly news, h�r doctor gave her a morphine as a way to cut the federal deficit. patch, which worked for som� months. The movement for "physician-assisted suicide," like that Seven other physicians called Fieger's office, to offer

56 Investigation EIR July 7, 1995 their help without pay, to find a specialist in Detroit who could help. Another offered to fly Garrish to a Houston pain clinic or fly up to examine her in Michigan free of charge. Fieger ignored their calls, messages, and faxes-all the while complaining on television that he couldn't find a doctor to help her. Fieger, whose lucrative association with Dr. Death nets him tens of millions of dollars in malpractice settlements a year, later dismissed the doctors as "insincere, money­ grubbing publicity seekers." Of the victim, Fieger said: Why would she want to live, she's lost her legs? Kevorkian said he didn't need any doctors , since the morphine patch didn't work, and the doctors had nothing else to offer Garrish. He was wrong, but he killed her anyway. Then, Kevorkian, who was unemployed as a pathologist for most of his adult life, announced, ''I'm a medical policeman. I can guide the traffic,"by referring patients to appropriate specialists. Too bad he never tried the Arthritis Foundation in Michi­ gan. They would have told him that even the worst case of rheumatoid arthritis can be so dramatically improved with new treatment and drug combinations that are available now for everyone, even children, that within a generation, no one need suffer limb damage or pain from this disease again. Dramatic results are possible even for those who suffer sig­ nificantfunctional disability or have very aggressive disease. To bring the highly inflammatory response under control, "Dr. Death" Jack Kevorkian: His Vlc,rlm.S JlJIWevea the patient's system is flooded with prednisone, then weaned yet the medical breakthroughs are at from it. Oftenthe chemotherapy drug metheltrexate is admin­ their suffering and prolonged their lives. istered, which has shown 50% improvement in joint pain and swelling in 50% of patients studied. This combination has doctor refused him pain medicine for of addiction. When been shown to alter the course of the arthritis, especially he was told to live with the pain, decided to use his in children. Since rheumatoid arthritis is an auto-immune .45 or to call Dr. Death. A new ordered a regime of disease, in which the body rejects its own tissue, some treat­ 2,000 milligrams of morphine daily . It put him in a stupor, ments have included a combination of metheltrexate and with no relief. l cyclosporine, the drug used to reduce a patient's immune When Frederick went to the Center for Advanced Pain I system from rejecting a transplant; or, with azulfidine, a drug Management at Houston's Memorial Hospital Southwest, used to treat another auto-immune disease: AIDS. Dr. Pavan Grover implanted an epi?ural catheter into his The Arthritis Foundation's board-certified rheumatolo­ lower back, under the skin. It was rooked to an external gist publicly offered to treat Garrish, but his offer was ignored pump that continuously released a tiny amount of morphine l by Fieger. Instead, the foundation was inundated with calls directly into his spine where it was n eded. Only 20 mg of from hundreds of arthritis patients who were terrified that morphine was used, one one-hundreth of what the patient they faced the same fate as Garrish. previously had taken-yet, he had to at pain relief. He took Other physicians who offered to help the despondent Gar­ his grandchildren fishing, drove a car, visited relatives. Once rish were pain specialists, Dr. John Nelson of Traverse City Frederick's pain was controlled, Dr. Grover said he had nev­ and Dr. Pavan Grover of Houston, both of whom are familiar er seen a patient who wanted to live sb much. with dozens of effective treatments for all types of chronic Frederick, moved by his own dxperience, wanted to and acute pain. spend his time educating people that there was an alternative Consider just one, the implantable pump. to Dr. Death. He wanted to tell Garri�h himself. Six months When Eugene Frederick, 65 , a veteran of the Korean before she was killed, he had Dr. GJover fax a letter, then War, was diagnosed with kidney cancer, he was treated for call, Fieger's officeexplaining to Garhsh that pain relief was the disease, then spent two years in intractable pain. He spent possible, and that suicide was not th answer, as he himself days crying in bed, begging his family not to touch him. had found out. He asked to speak with er personally. Fieger, The cancer had metastasized to his spine; he was diagnosed complicit in the murder, blocked al rcommunication with terminal , likely to be dead within three months. Yet, his Garrish.

EIR July 7, 1995 Investigation 57 Frederick outlived his prognosis by a year. He died on would have been candidates for the National Cancer Insti­ Nov. 26, the same day that Kevorkian killed Margaret tute's (NCI) high-priority clinical trial (meaning the treat­ Garrish. ment studied is very promising) for patients with lung cancer Frederick's discovery, one of dozens of multi-faceted (Study #INT-01 15), information on NCI's trials, other lung approaches available for treatmentof pain, could have solved cancer treatment, and newest pain management protocols is a number of Garrish's problems, including her depression readily available (l-800-4-CANCER). NCI's International and even the phantom limb pain that she may have experi­ Cancer Information Center also produces two cancer databas­ enced after the partial amputation of her legs. Specialists es with summaries of state-of-the-art cancer treatment and have found several approaches that help, including the use of ongoing clinical trials, investigational or newly approved an epidural befo re the limb is removed, and nerve stimulation drugs. afterwards. Gary Sloan had colon cancer and died on March 4, 1991, after an alleged friend constructed and used Kevorkian's Treatment for cancer patients murder machine with diagrams Kevorkian had sent to him But, what treatment and pain relief could have helped the in California. If Kevorkian were a legitimate physician, he eight or nine other Kevorkian victims who had cancer? would have told Sloan about NCI's high-priority trials that Ronald Masur was gassed to death on May 16, 1993, are studying the most effective treatment for colon cancer. after his lung cancer spread to his bones. Lois Hawes was Faced with life-threatening cancer, Masur or any of Kev­ murdered on Sept. 26, 1992, just months after she was diag­ orkian's victims, whatever their disease, may have had the nosed with lung cancer. While it is not clear whether they chance to use experimental drugs approved by the U.S. Food

'A whole new life' Consider the case ofNorma G., a 66-year-old woman, What's available who contracted polio as a child. At age 13, she entered a hospital, living there for the :next two and half years, inpain management during which she underwent five corrective surgeries and fusions of her spine for severe scoliosis. She went on to In 1994, the Agency for Health Care Policy and Research marry and have children, whil¢ the curvature of her spine (AHCPR) in Rockville, Maryland, part of the U.S. De­ intensified, curving her spine into, she says, a pretzel, partment of Health and Human Services, produced clini­ crushing her ribs into her lungs, intestines, and other or­ cal practice guidelines for management of acute, post­ gans. Over the last decade, muscle spasms so wracked her operative pain and cancer pain among patients of all ages. body that sleeping pills, huge' amounts of muscle relax­ The guidelines for clinicians and patients are available ants, and the ten doctors she consultedover as many years through the AHCPR or the National Cancer Institute offered no relief. The pain was so intense, she could no (l-800-4-CANCER). longer stand, walk, or eat. She used a wheelchair, became Prior to the AHCPR pain studies, a relatively new bedridden, then suicidal. She would try one more doctor, specialty of pain management developed out of the recent at a hospital's multidisciplinary pain-management clinic. recognition that pain, especially debilitating chronic pain, Norma says she didn't believe in miracles, but says can cause a host of secondary problems which persist this doctor gave her a whole new life. She now works a long afterthe original injury or trauma is resolved. Thus, 12-hour day, "actively" baby-sitting her grandchildren specialists fromthe fields ofpsychiatry, neurology, physi­ (they're all under nine years old!). She would have been cal therapy, and anesthesiology all opened clinics offering a candidate for a nerve block, but the severe compression pain relief treatments perfected by-and often limited of her spinal nerves precluded that. Instead, she takes to-their particular field. A neurologist might offer a spi­ methadone, a synthetic form of morphine, with another nal implant or nerve block, but for a situation in which medication to counteract drowsiness. She has experienced a much less invasive, less radical approach might have no side-effects. Norma says p¢ople who last saw her five worked equally well. And, like any field, there are sham or ten years ago, don't recognize her. operators who prey on desperate individuals. Most prom­ While doctors increasingly recognize that high-dose ising are those clinics or hospitals that utilize a team of pain medication for cancer or post-operative discomfort specialists who can offer a multidisciplinary approach to does not automatically create thepsychological addiction assess the pain's cause and to determine how best to treat in a patient that was once feared, it is also the case that its symptoms. there are now a growing number of more sophisticated

58 Investigation EIR July 7, 1995 and Drug Administration's treatment IND (Investigational was Kevorkian's 15th victim, dying on Feb. 18, 1993 after New Drug) program. The FDA can link patients with new being emotionally devastated by his mother's death and his drugs submitted for approval. own cancer. An NCI high-priority trial is studying threedif­ ferent treatment protocols for laryng�l cancer. Stopping cancer with one injection Could other trials, treatment INOs, or established treat­ Scripps Research Institute in San Diego, California has ment protocols have helped Kevorkian victims Stanley Ball developed a new therapeuticapproach that prevents the meta­ and Mary Biernat? Both had cancer, both were murdered static spread of virtually all types of tumor cells in man by on Feb. 4, 1993. They might be alive today had someone eliminating their access to the blood supply needed to grow. called the National Cancer Institute-4esignated Comprehen­ A single inje�tion of LM609 was found successful in tar­ sive Cancer Center at the Michigan ' Cancer Foundation in geting blood vessels entering tumors, while leaving normal Detroit (3 1 3-833-07 10). blood vessels unaffected. This selective and systematic oblit­ The center, one of only two nationally, participates in all eration of vascular cells ultimately leads to regression of of NCI's clinical trials and provides s41te-of-the-artdiagnosis preestablished human carcinomas of lung, breast, pancreas, and therapy methods. It was here th.t AZT, the first FDA­ brain, and larynx, and of melanomas. Researchers intend to approved drug for the treatment of �S, was created. The move this breakthrough through the pipeline and begin hu­ center's many facilities include its he�dquartersat the Detroit man trials within the year . Medical Center and its seven unive�ity-affiliated hospitals, It is likely that Jonathan David Grenz, who had throat Wayne State University, and the Vai4evicius Magnetic Res­ cancer, would have benefittedfrom such clinical trials. Grenz onance Imaging (MRI) and Spectro�opy Center, where re- I

option�ther than opiates or narcotic-induced comas­ tional trials is an implant into the $pine of tiny plastic available for relief. Norma's doctor explained that long­ cylinders the size of pencil lead, fill¢d with adrenal cow term use of methadone-the substitute for heroin addic­ cells. The tube's tiny pores allow a c�ntinual dispersal of tion-would not be appropriate for most people, but it pain-killing substances called enkeph,"ins and endorphins was right for Norma. through the person's system, but the1 pores are too small Here are a few of the other options available: for the proteins of the body's immune system to get in and Intraspinal drug infusion therapy . Even intractable reject the implant. Manufacturers think the implant will pain that does not respond to conventional therapies can help end-stage cancer patients for whom pain can be unre­ be controlled without sedation by means of a pump that lenting. dispenses minute amounts of anesthesia directly into the Nerve block. In cases of severe nerve damage or for spinal cord. The one-inch-thick pump can be refilledevery control of intractablepain, an injection of a local anesthe­ four months with a needle through the skin into the port at tic can be given into the surrounding nerve or directly the center of the pump. The dose, rate, and timing of into the spine. In some cases, an ipjection of an anti­ the medication to be released can be programmed and inflammatory, cortisone, is injected !with the anesthetic. adjusted by holding a small computer over the skin to When other options fail or are inappropriate, the nerve transmit the adjustments by a radio signal. causing the pain may be destroyed 1hrough a variety of Adjuvants. Tricyclic antidepressants (at doses too low means. With cryoalgesia, doctors freeze the nerve, de­ to treat depression) have been hailed for their ability to stroying it, while leaving its shell or architecture intact to restore a patient's normal nighttime sleep. When adminis­ allow it to grow back. For example: the case of a 30-year­ tered with certain pain medications, their analgesic or pain old nurse who was forced to stop work after a severe fall relief potential is enhanced. damaged nerves in her tailbone. When doctors froze the Radiopharmaceuticals. For metastatic bone pain from damaged nerves, she returned to work pain free. thyroid, prostate, breast, and bone cancers, radiopharma­ Sp inal Cord Stimulation (SCS). Ratients with severe, ceuticals like Metastron (strontium-89) are injected, and chronic pain in the legs, arms, or lower back have benefit­ follow the same biochemical pathways of calcium in the ted from a small implanted device that stimulates the spi­ body into the mineral structure of bone. The uptake of nal cord with tiny electrical signals that interfere with the Metastron is enhanced at sites of bone malignancy, and transmission of pain signals to the brain, thus reducing its retention in these sites is prolonged compared to normal the sensation of pain. SCS can be -,sed to relieve pain bone. The result is total or near total pain relief for up to sensations associated with amputations (phantom limb six months, without sedation. pain) or "failed back" patients (where spinal surgeries Implants. One of the newest therapies in investiga- failed).-Linda Everett

EIR July 7, 1995 Investigation 59 Polaroid Corp.'s Helios 1417 Laser System fo r medical diagnostic imaging. Americans once believed in progress, including continuous advances in medical technology fo r the benefitof all mankind. Today, we are being sold the propaganda that human life is "too expensive."

searchers use two natural forces-a magnetic field and radio of life-as indicated by the who were well enough waves-to study the behavior of cells and how they react to to hike across Ireland! at the June 1995 conference disease and treatment. of the Society of Nuclear un,u",.. reported that the cancer- Martie Ruart, murdered on Feb. 18, 1993, might also killing beta rays of strontium-89 possibly stop the cancer have been alive today with one phone call. Ruart, found to from progressing is just one of several beta- have a golf ball-sized tumor in her duodenum, delayed hav­ particle-emitting agents to relieve pain). It has en- ing it removed. It eventually spread, causing the removal abled advanced prostate cancer patIents, groggy from heavy of part of her stomach and pancreas. She refused further use of narcotic pain relievers, become virtually drug-free treatment, opting for a self-help course to "promote a greater after a strontium injection. belief in her own healing powers." Further surgery and a This remarkable treatment, I ...."J UU'"''"'u by Medi-Physics/ "strict regime of vegetable juices, coffee enemas, and thyroid Amersham, was available for before the psychopath supplements" did not tum back her cancer. Kevorkian took the lives of: Beyond the actual curative cancer treatments and clinical Jack Miller, murdered J trials, Kevorkian's victims could have benefittedwith a new cancer. pain treatment, called Metastron, which knocks out most Donald O'Keefe, Sept. 9, 1993, just two bone cancer pain for most patients for up to six months. months after his firstand only tr!!atnnelltfor bone cancer. His Metastron is a solution of radioactive strontium-89. Once family said he was bedridden pain, yet neither he nor injected into the blood, it migrates to the same outer layer his family ever contacted his for treatment of his pain of bone to which painful metastatic prostate, pancreatic , or or his deep depression. breast cancer spreads. It irradiates the cancer cells and lessens Dr. Ali Khalili, the pain. Eighty percent of the 600 patients studied found bone cancer, but had refused the first chemotherapy or relief, some complete relief. Treated patients are less prone radiation treatment. He did an implanted pump provid- to develop new painful metastases: About 59% of patients ing a very low dose of pain 111"'Ul�,all,Vllwhich could have been were free of new metastases after three months; 30% cut easily and safely increased. analgesic (pain relief medication) use; all had a better quality medication.

60 Investigation EIR July 7, 1995 In another tragic case, Metastron might have saved the thoracic Surgery at Washington University Schoolof Medi­ life of Kevorkian victim Catherine Andreyev, had she cine in St. Louis, Missouri, found that the reduction in the called anyone-but Kevorkian-for help. Within 24 hours total lung capacity gave patients like Gale and Lawrence of calling Kevorkian, Andreyev was transported across state marked relief in the shortness of breaththat so disables them, lines from Pennsylvania to Michigan and killed. Kevorkian forcing them to sleep upright at night. It also significantly attorneyMichael Schwartz told the press that Andreyev had improved exercise tolerance and quality of life. Volume re­ been "a victim of agony, torture, and torment for six years." duction was first performed 35 yeats ago; it was recently The facts: Andreyev beat breast cancer in 1986, had a revived by researchers now modifying the procedure. lump removed in 1989, returnedto working two jobs, singing Majorie Wantz, murdered on Oct. 23, 1991, had suf­ in several church choirs, and traveling. Cancer was found in fered severe chronic pain for years. Records show that she both her lungs in December 1991, but she worked two jobs suffered from depression, suicide ideation, andan obsession for another six months. with pelvic pain, the source of which was unknown. An Schwartz told the press: Andreyev "had no hope for nor­ autopsy performed by Chief Coroner for Oakland County mal life . . . her every day was wracked with excruciating Dr. L. Dragovic found no sign of disease. Wantz had been pain . . . each day had been an additional day of horror and involuntarily institutionalized twice it! the two yearsprior to dread." her murder. Because of her suicidal tendencies, proceedings The facts: Up to the day before she died, Andreyev's were again initiated to have her institutionalized, but she house was filled with visitors bearing videos or Italian or left the facility against medical advice. In his two years of Chinese dinners. She never needed more than a morphine or "treatment," Kevorkian never addres$ed Wantz's mental ill­ Duragesic patch (which, when placed on the skin, releases ness nor did he "treat" her for pelvic pain. She refused any pain medication into the patient's system). The dosage ofthe physician's treatment or pain therapy program prior to her patch could have been increased to three higher levels of death. Last year, physicians announced success in treating medication whenever she wished. Her nurse also assured her previously undiagnosable pelvic pain in women with the that a morphine drip, which would allow Andreyev to control same surgery generally used to relieve patients of leg pain the level of pain medication needed, was available as well. due to varicose veins. Why did Andreyev call the depraved Dr. Death? Whenever Sherry Miller died of Kevorkian's treatment on Oct. her pain medication needed adjustment, she grew irritable 23, 1991. She had multiple sclerosis (MS), as did Susan and depressed. Her nurse was due to adjust her medication Williams, murdered on May 25, 1992, and Elaine Gold­ on the morning of Nov. 23, just hours after she was gassed baum, murdered on Feb. 6, 1993. Miller said she was "dis­ to death. gusted with life" and was despondent because she had been The National Cancer Institute has two ongoing high-pri­ virtually helpless and dependent on her parents since her ority clinical trials for treatment of Stage II and Stage IlIA divorce years ago. Kevorkian attorney Fieger, who said that breast cancer. Miller suffered from "terminal, malignant" multiple sclero­ sis, claimed she had "nothing to live. for" and had "a life of Give patients relief, not death no meaning." Kevorkian says people with MS "aregoing to On Feb. 15, 1993, Dr. Death used his portable gas cham­ die anyway ....So, what's the big dealT' ber to take the life of Hugh Gale, 70, who had chronic MS is a chronic, sometimes progressive neurological dis­ emphysema. Kevorkian's attorney Michael Schwartz told ease in which the patient's immune . system mistakenly at­ the press that Gale could no longer walk and could not go out tacks the fatty coating that insulates the nerve cells of the of his house. "He was on oxygen 100% of the time." Are spinal cord and brain, thereby blocking the transmission of these adequate reasons to take a humau. life? There are farm­ nerve impulses from the brain to muscles and body parts. ers who work their fields every day, all day, in their tractors People with MS can have nearly normal life-expectancy, with a portable oxygen tank strapped to their backs. It is not with symptoms of fatigue, slurred speech, visual impair­ clear whether Gale's physician, who said Gale was terribly ment, and sometimes, paralysis. depressed, ever treated him for depression or attempted ex­ While Kevorkian is asking, "Who in their right mind perimental treatment for the emphysema. Another Kevorkian would try to stop a cripple ...who can't even talk from - victim, Marcella Lawrence, murdered on Dec. 15, 1992, killing himself?" several new treatments that slow the pro­ also had emphysema. gression of MS have come on line ..While there is still no They both may have benefittedfrom a surgical procedure cure, Betaseron, a genetically engineered form of the im­ called volume reduction, for chronic obstructive pulmonary mune system hormone beta interferon, produced by Berlex disease (caused by emphysema or bronchitis). A surgeon Labs in Wayne, New Jersey, has been approved for treat­ actually staples the bottom portion of each extended lung or ment. Betaseron appears to reduce the frequency of and se­ excises the diseased portion, reducing by 20% to 30% of the verity of exacerbations (new MS s)lmptoms or worsening volume of each lung. Physicians at the Division of Cardio- of old ones) experienced in relapsing-remitting MS, which

EIR July 7, 1995 Investigation 61 affects about 140,000people in the UnitedStates (about 40% Gehrig's disease. ALS is a neuromuscular degenerative dis­ of the total MS population). ease in which the nerves supplying the muscles break down, In 1994, Biogen Inc. of Cambridge , Massachusetts intro­ causing a wasting of the muscles in the hands, arms, and duced its genetically engineered form of beta interferon, legs. But, Kevorkian provided a different "treatment" for which has proven effective in U.S. and European trials in four of his victims who had ALS: Marguerite Tate, mur­ delaying by 75% the average time a patient becomes disabled dered Dec. 15, 1992, died depressed and estranged from over a two-year period. Biogen filed with the FDA for ap­ her family; Thomas Hyde, murdered Aug. 4, 1993, "just proval of Avonex in May 1995. Teva Pharmaceuticals of gave up"; Merian Ruth Fred�rick was murdered Oct. 22, Israel has also introduced a drug, copolymer- I, which sig­ 1993; and Nicholas John Loving was murdered May 12, nificantly slowed the immune system's attack in human tri­ 1995. als. Patients may benefit from a combination of these drugs While there is no cure for ALS , results from the largest­ in their treatment, since they workdifferentl y. ever Phase III trial indicate thalt Rilutek (riluzole) is the first But, Kevorkian's victims, no matter how much daily compound to prolong survivail since the disease was first assistance they needed, could have accessed the enormous described in 1869. The trial was a multinational study con­ resources of either the Living and Learning Center in Lan­ ducted at 31 sites in Europe and North America. Enrollment sing, Michigan, which helps anyone of any age with any began in December 1992, with Phase II trials conducted disability (even if they are so incapacitated that they can earlier-within a timeframe th�t could have included Kevor­ controlonly one muscle in their body) to vocalize full senten­ kian's victims. The FDA is now reviewing the application of ces and to write using commercially available augmentative Rhone-Poulenc Rorer, creator of Rilutek, for treatment IND, communication devices; or, Michigan's Alliance for Tech­ usually a 30-day process. nology Access, which has 3,500 adaptive devices that zip On June 12, 1995, Cephalon, Inc. announced a Phase zippers, adapt personal computers with oversized monitors, III clinical trial in which a new therapy, Myotrophin, demon­ and offerfree software and hardware options to enlarge texts strated less disease severity, 2p% less deterioration, slower and increase contrast to allow the legally blind (as was one progression of the disease, and better functional ability in of Dr. Death' s MS victims) to read and type. ALS patients receiving the drug than patients receiving a placebo. Myotrophin, a recombinant human Insulin-like Living with Lou Gehrig's disease Growth Factor- l or IGF- l, alters the course of this devasta­ Such adaptive or assistive devices are often basic tools ting disease. IGF- l is a natu�ally occurring protein found for individuals with amyotrophic lateral sclerosis, or Lou in muscle and tissue, which mediates regeneration of the

sands of people with brain stem damage; spinal cord injur­ The Passy-Muirvalve ies; chronic obstructive pulmonary and cardiac diseases; neuromuscular diseases that cause respiratory paralysis, like muscular dystrophy;Guillain-B arre syndrome; polio­ Patients who need long -termventilator support or a trache­ myelitis; ALS, or Lou Gehrig's disease; and musculo­ ostomy undergo a surgical procedure called a tracheoto­ skeletal diseases or damage. my, in which a small opening is made through the neck Not only has the Passy-Muir valve allowed communi­ into the windpipe,just below the larynx or voice box. A cation so critical during therapy after a strokeor accident, tracheal tube is inserted, keeping the tracheostomy open but it also assures that' children as young as two months and allowing a ventilator link-Up. The ventilator pumps don't skip their pre-speech v<>

62 Investigation EIR July 7, 1995 peripheral nervous system and its recovery from injury. IGF- 1 supports the survival of motor neurons and acceler­ ates the regeneration of damaged motor neurons. Studies show that it promotes sprouting and function of peripheral nerves. The developers of IGF-1 , Cephal on Inc. of West Chester, Pennsylvania and the Chiron Corp., say they are committed to expanding patient access to M yotrophin (1-800-797- 0705). The FDA designated Myotrophin an orphan drug treatment for ALS in October 1991, making it available for ALS patients. It may also have treatment IND status. Before her death, Merian Frederick wrote of her longing to be able to communicate, to converse with friends, to write . letters . She could have, with the most basic, inexpensive adaptive devices, and more sophisticated aids. The prediction of death from ALS within three to five years is often given with a finality that stops patients from Pierre and Jeremy Adler, two-year-old fighting back. Consider British cosmologist Stephen Tracheostomy Speaking Valve. The Hawking, who, for all his entropy theories, has managed to develop speech nor.mally . elude their application to his own battle with ALS . He was diagnosed with ALS when he was 21 years old and bored

with life. Hawking says it was the diagnosis and its prognosis Can't play bingo? Call Dr . ..,,,,,,,u,u of death within three years , that made him realize that life In his Oct. 27, 1992 appearance was worth living. Since his diagnosis 33 years ago, Hawking Club in Washington, D.C., told reporters that has married, had three children, written books, and gallivant­ "any disease that curtails life, even a day, is terminal." ed around the globe in his motorized wheelchair to give (Little wonder that one woman got suicide help after she lectures using the latest models of speech synthesizers. complained that her medical VlV'Ul"'I'" stopped her going The alternativeto "giving up" when faced with a progno­ to bingo.) But, Kevorkian's are topped by sis of total paralysis, was best demonstrated by a young man, British citizen Derek Humphry, who the Hemlock David Muir, who turned his rage about his dependence on a Society U.S.A. to make it legal United States for ventilator into a dandy little invention that has since helped anyone , of any age, to get over 100,000 people who , like Mrs. Frederick, desperately place, for any reason. wanted to "converse with friends ." , His 1991 book, Final Exit, 10 he gives explicit In 1984, when college student Muir suffered a respiratory details on how to commit suicide or , was found next arrest that necessitated his continued use of a ventilator, he to the bodies of scores of suicide Humphry leads the wrote about how bitter he initially felt. He had accepted the whenever a medical fact that he was unable to walk or use his arms; he had condition interferes with your 1l

EIR July 7, 1995 Investigation 63 While Humphry called osteoporosis a terminal disease in within minutes, it eliminates the need for surgery. Patients his book, there are women who were originally crippled by are able to walk within days of having their hip fractures the disease and languishing in a wheelchair, who got to their repaired with SRS. The FDA h�s approved SRS for multicen­ feet and walked about for the first time in years after a pro­ ter clinical trials in theUnited States to treat wrist fractures. gram of weight training was initiated! Besides the approved However, it is being used in Europe for everything from hormone replacement therapy, experts believe that several reconstructing faces (after head-on collisions) to an experi­ new kinds of therapies are likely within two or three years. mental reconstruction of one patient's spine. Merck and Co. has found that their new drug alendronate has increased bone density considerably in their studies of You've been duped women with the disease (awaiting FDA approval). A Univer­ A recent poll indicates that Americans are ready to legal­ sity of Californiastudy , released in February 1995, indicates ize murders like those reviewed here, via legislation pro­ that the hormone parathyroid can actually reverse bone loss posed in at least a dozen states� They're ready to change the due to osteoporosis (human trials of this hormone are now laws of westernciviliza tion and of this country, based on the under way). But perhaps one of the most exciting break­ lies that the ghoul Kevorkian is peddling. throughs is a new, injectable bone-mineral substitute that The information about the medical breakthroughs and vastly improves treatment of the large bone fractures caused new forms of pain management mentioned here is by no by osteoporosis every year. means complete, since we haven't even mentioned possible The bone substitute, known as Skeletal Repair System uses of optical biophysics in ¢uring diseases like AIDS. It (SRS), actually forms like natural bone right within the was gleaned, not from professional journals, but from media body-without systemic rejection or adverse side effects (see reports. Yet it makes the case that Americans have been box). In fact, the body can't tell the difference between SRS duped by Kevorkian's "no hope" pessimism all the more and natural bone. Because SRS is injectable and solidifies damning. It is not a coincidence that the resurgence of the

within minutes, it eliminates the need for open surgery to affix the rods and metal pins that are used to stabilize large The great potential bone fractures. Within 12 hours, SRS becomes as strong of artificialbone as natural bone; therefore, patients are immobilized in casts for a fraction of the time needed in current treat­ ments. At the February meeting of the American Association of Patients are more willing tOiwalk within days of having Orthopaedic Surgeons, researchers with the Norian Corp. their hip fractures repaired witlilSRS , because it produces of Cupertino, California announced a new "injectable" a rigid internal fixation of the bone to whatever hardware artificial bone which may soon become the treatment of or pins are used. According tet> Dr. Brent R. Constantz, choice for millions of people who suffer broken hips, co-author of a study on SRS published in Science on wrists, and shins every year. The new material not only March 24, this shorter period of immobilization turns out heals these tough fractures quickly and more safely, but it to have added benefits. Patients enter physical therapy can repair the brittle bones and fractured vertebrae caused sooner, and do not lose as much muscle mass and tone. by osteoporosis; stabilize failed fusions of spinal verte­ Furthermore, the longer that fqlil, elderly women are hos­ brae; and has the potential to revolutionize the cranial and pitalized for hip surgeries, the higher the mortality rate, oral surgical methods used in difficult facial reconstruc­ usually due to some other conqition, like pneumonia. tions, like the jaws and upper palates, of auto accident In February, SRS was approvedby the U. S. Food and victims. Drug Administration for clinital trials in treating wrist The artificial bone, known as Skeletal Repair System fractures in 12 U.S. hospitals. It will offer a dramatic (SRS), forms carbonated apatite-the main mineral con­ improvement of wrist fracture repairs, especially for older stituent of natural bone-directly within the body. Once patients with osteoporosis, for whom this is a common the shattered bone is reset, doctors guided by X-rays inject fracture. Their brittle bones qontinue to crush after the the SRS, which has the consistency of toothpaste, into a fracture and crumble around th� hardware needed to stabi­ fracture site. Doctors have about five minutes to mold lize the repaired bone. Bone fnagments tend to fall out of the material, which is non-toxic and does not shrink like correct anatomical alignment, even in well-set casts. The plastic bone cements. There is no heat or toxic chemical bone heals, but in the wrong position, which severely released into the body with its use. Because it hardens diminishes the patient's hand !motion, the grip strength,

64 Investigation EIR July 7, 1995 "right-to-die" movement in the United States started with the provides diagrams and classes on hoW'to suffocate your com­ British hospice concept. That, too, was a swindle: Accept a panion who has AIDS, or by sons and daughters who promise painless, early death, there's nothing else to be done-that to "help" their parents "when the time comes." These chil­ is, within the confinesof the medical resources allotted in the dren end up watching their fathers or mothers gasping under post-industrial decline of England. a plastic bag for breath, while they hOld their parents' strug- The perspective that made America a world leader in . gling hands down until they lapse into death. Such deathsare medical science largely turned on the concept that each indi­ an initiation into a culture that willingly accepts "suicide" vidual, made in the image ofthe Creator, is capable, with the over any belief that life is sacred. As one reporterexplained in best of our nation's resources, of continuing that process of a recent article in New Yorker magazine, "Euthanasia begets creation-to create miracles like the medical breakthroughs euthanasia." He tells how he, his tirother, and his father mentioned here. That each individual, even in their sickness, helped his mother commit suicide dunng her fightwith can­ is so cherished, is a fundamentally different worldview than cer, and how, like others he met at a Hemlock Society meet­ that which bows to the disease, or to nature, as Prince Philip ing who had "helped" relatives and ffiendsto die, he is sure of the House of Windsor espouses. It is that mentality that he will die the same way. After he had tucked away his is turning ours into a nation of killers, where medical eth­ mother's leftover Seconal tablets for when his tum at suicide icists make millions writing and lecturing on when it is arrived, his father was also hunting for. them frantically for "ethical" to kill. the same reason. Is that the legacy you wish to lea�e your children? With­ 'Euthanasia begets euthanasia' out a battle to put this country back on economic track as a People are being killed, not only with great fanfare by world leader, thereby becoming once again, a beacon of hope Kevorkian, but silently, every hour, by freelance killerswho , for all people, it may be the only legacy you have to leave like ERGO!-the Hemlock Society's sister organization- them.

and the patient's independence. Now, surgery is no longer In some cases, during open surgery aM the implanting of needed, since SRS can simply be injected into the fracture $2,000 worth of instrumentation (lar� plate and screws), site, making the bone and stabilizing device rigid within doctorsreestablish the joint withSRS as a void filler. Thisis minutes. The result is that SRS patients, in a cast for importantbecause without the contour ofthe joint reestab­ two weeks, attain 80% of their normal grip strengththree lished, the fracture heals improperly, causing arthritis that months after a wrist fracture. Current treatment gives pa­ may require whole knee replacement.I Other surgeons use tients only 75% of their normal strength one year after only a few screws with SRS to stabiliie the bone, because fracture, with a six-to-eight-week use of an external fixa­ SRS becomes structural immediately. : tion device for complex fractures. In a furtherevolution of its use, doctors with the most There are about 1.5 million fracturesdue to osteoporo­ experience with SRS no longer use surgery at all. They sis every year in the United States, and they usually occur use an arthroscope in the knee joint to see inside the knee in the hip, tibia, or wrist. When SRS is injected into the and to see the fracture. With a simple stabbing incision porous spongy inner shell of these large bones thinned by , below the knee, doctors use an awl to push the fragments osteoporosis, it interpenetrates the spongy interstices and back up, to reapproximate the joint ! surface. They then interlocks with them, inducing new bone growth. Dr. inject the SRS, and cast the leg for a ,couple of weeks, at Constantz told EIR that the body cannot distinguish SRS' s which point the patient begins physical therapy. chemical composition and crystal structure from that of natural bone. So, SRS acts like a living bone graft in a 'This is a job for SRS!' spinal fusion-with new bone formation and blood ves­ Dutch surgeons recently sought U.S. doctors' advice sels developing through it, a process that replaces SRS on treatinga young man whose spinal !Vertebraehad crum-. with real bone within weeks. Norian Corp. hopes to use bled, causing him to shrink 31 centimeters in height (the SRS to augment the type of fixationscrews used to stabi­ length of his head), which in tum caused him breathing lize fusions of spinal vertebrae. These (pedicle) screws difficulties-exactly what women with osteoporosis ex­ sometimes loosen or fall out. But, when they are augment­ perience. The doctors acted quickly when told, "This is a ed or set with SRS, this cannot happen. job for SRS!" They used SRS to fillthe spinal voids caused In the Netherlands, where SRS is on the market, doc­ by the bone loss-in effect reconstru¢ting his spine. tors are finding ways to use it to improve treatment of com­ Norian SRS will greatly improve� lives of the 30 mil­ mon large bone fractures, like that of the uppershin or tibia. lion Americansby affected osteoporosis,-LindaEverett

EIR July 7, 1995 Investigation 65 �TIillNational

British elites jump on Wilson bandwagon

by Jeffrey Steinberg and Kathy Klenetsky

Several weeks after the Oklahoma City bombing on April he pronounced Gramm's PreSidential bid "dead on arrival," 19, Lord William Rees-Mogg, the London Times editor-in­ His Lordship waxed eloquent! over CaliforniaGov . Pete Wil­ chief turned weekly columnist, who has been the leading son. "If [Gramm's] lack of personal appeal rules him out, "Clinton-basher" among Britain's Club of the Isles aristocra­ and I have found not a single Republican who warmsto him cy, conducted a fact-findingtour of the United States. Upon as an individual, the race wiU be between Mr. Clinton and his return to England, he penned a column, sadly noting Mr. Wilson. . . . Many Rep�blicans would probablyprefer that the Conservative Revolution's favorite candidate for the a more ideological and less ptagmatic candidate. But he has 1996 Republican Party Presidential nomination, Sen. Phil some key assets: He has been a strong governor, he is an Gramm of Texas, was "unelectable." Gramm's problem, he open market conservative, a successful campaigner, an able lamented, "is that people do not like him. His colleagues do man, and he does not come from Washington. The odds look not like him in the Senate, and voters do not like him on as good as a Presidential cancJlidateever enjoys at this stage. television ...he sounds and looks like a curmudgeon." Mr. Wilson probably now has a better than even chance of Within days of Lord Rees-Mogg's pronouncement, the beating Mr. Dole for the nomination. If nominated, Mr. American airwaves were jammed with stories about Senator Wilson has a better than even chance of beating Mr. Clinton Gramm's investments in pornographic films, his efforts to in 1996." win early release for a convicted drug felon, and other sleazy Lord Rees-Mogg was not just speaking as a distant admir­ actions way out of line for someone courting the votes of the er. On May 1, he was present at the Willard Hotel in Wash­ Christian Right. ington for a Wilson campaign fundraiser, and was personally While there is no evidence linking the Rees-Mogg assess­ most impressed with the governor's wife, Gayle Edlund ment to Phil Gramm's run-in with the American news media, Wilson. the timing is noteworthy. The trashing of Gramm, further­ A month later, on June $, the Hollinger Corp.'sDail y more, created an early vacuum within the ranks of GOP Telegraph ran its own glowing endorsement of Wilson for frontrunners, with Senate Majority Leader Robert Dole President in a two-thirds page piece by Washington bureau (Kansas), no favorite of the Mont Pelerin Society crowd chief Stephen Robinson. Robinson described Wilson as the within the party and in London, suddenly looking more and candidate whose views most closely mirror those of the more like a breakaway winner in the GOP 1996 primaries. American people, and labeled his 1994 gubernatorialelection Lord Rees-Mogg, the publisher, along with Oxford grad victory one of the great come-from-behind victories in James Dale Davidson, of the American populist newsletter history. Strategic Investment, did, however, make his own choice known for the GOP nod. And it wasn't Bob Dole, whose Bush-leaguers jump in : bellicose confrontationin January with British Prime Minis­ By the time Rees-Mogg qompleted his fact-findingjaunt ter John Major over the Bosnia conflict placed him right and pronounced Wilson the Club of the Isles' "favoriteson" behind Bill Clinton on London's hate list. candidate to defeat Clinton, tlhe Wilson campaign organiza­ In the same May 4, 1995 London Times column in which tion had already been buttressed by the arrival of a small

66 National EIR July 7, 1995 anny of veterans of the George Bush apparatus. that the success of the racist Prop 187. proves that California These included Craig Fuller, who served as chief of staff is a "sovereign state," and "not a col�ny of the federal gov­ to Bush when he was vice president, and now functions as ernment." manager of Wilson's campaign; Robert Mosbacher, secre­ tary of commerce during Bush's Presidency, and now a part­ Gramm's X-rated campaign ner with Bush and Bush's secretary of state, James Baker, It is no secret that some of PresidflntClinton 's campaign in a Houston-based business; Richard Bond, former deputy advisers had been quietly hoping th�t Phil Gramm would chief of staff during Bush's vice presidency; Stuart K. Spen­ sweep the GOP Presidential nomination in 1996. While the cer, the veteran professional political consultant who over­ Los Angeles Times dubbed Pete Wil.on, a notoriously dry saw Bush's 1992 reelection campaign; and James Lake, a public speaker, "robo-pol," Lyndon LaRouche had labeled consultant to Bush's 1992 campaign. Gramm "ForrestGum p's evil twin." ¥any Democraticpoll­ Wilson's campaign has recruited Massachusetts Gov. sters believed that Gramm would pose!the least seriouschal­ William Weld as its finance chairman. The scion of an old lenge to the President's reelection. New York family that earnedits fortune as Tory junior part­ Gramm's early fall did not come iin reaction to the fact ners of the British in the China opium trade, Weld was thrust that he was peddlingan extremebrand of ConservativeRevo­ into national political prominence in 1986, when, with then­ lution austerity that would make Hitlel1's Economics Minister Vice President Bush's backing, he was promoted from U.S. HjalmarSchacht smile in his grave. Gramm was caught in a Attorney in Boston to Assistant Attorney General in charge porno scandalat a particularlyembarrassing moment: the day of the Criminal Division. His credentials: He instigated and he appeared side-by-side with ChristiaJlCoalition head Ralph oversaw the railroad prosecution of Lyndon LaRouche. Reed to embrace that organization's "Contract with the Bush himself has not yet endorsed a Republican candi­ American Family." date, but he was an outspoken supporter of Wilson 's guberna­ The story broke in the June 5, �995 issue of the New torial bid last year. Sources close to Bush report that he is Republic, under the byline of John B. Judis. It seems that in angling to be the Republican Party's self-annointed "king­ 1974, Gramm had poured $15,000into a pornographicmovie maker," and he has dreams of parlaying a Wilson victory in about the Nixon White House, called White House Madness. 1996 into a spot on the 2000GOP Presidential ticket for his Through his brother-in-law, G ramm iwas introduced to the son George Bush, Jr. , the current governorof Texas. work of director Mark Lester, who ; had already earned a Even Henry Kissinger, recently knighted by Queen Eliza­ reputation for his 1971 pornogrp�ic spoof on Nixon, beth II for his decades of slavish loyalty to the House of Tricia's Wedding, which starred a S� Francisco troupe of Windsor and the Club of the Isles, has been sighted on the gay female impersonatorscalled the qoquettes. West Coast attempting to whip up support for a Wilson Lester later made a pornograp�ic film, Truck Stop candidacy. Women, that so titillated Gramm that �e sent off, unsolicited, In keeping with this vote of confidence from the Thatch­ a $15,000check to back the film's dis(ribution. The film was erites and the Bush-leaguers, over the past year, Wilson has already oversubscribed, but Gramm was promised a piece of sought to transform himself from a "moderate" Republican the action in Lester's next film, Bequty Queens. Gramm, who championed homosexual and abortion rights and em­ according to his former brother-in-la;.v, read the script and braced environmentalism, while opposing California's anti­ loved the film;however, Lester shel� the project in favor property tax Proposition 13, to a demagogic advocate of the of a sequel about Nixon. Again, Gran)m plowed through the main tenets of the Speaker of the House Newt Gingrich's script, gave his blessing, even thoug� the movie was likely "Contract on America." to be slapped with an X rating by thet industry rating board, That metamorphosis began during Wilson's 1994 guber­ and placed his money on the project. Already planning to run natorial reelection effort, when he turned a 20-point deficit for public office, Gramm arrangedto bave his investment in into a win at the polls, largely by jumping on the anti-immi­ White House Madness conduited through the wife of a fellow gration bandwagon. Wilson became a champion of Proposi­ faculty member at Texas A&M. tion 187, voted up by Californiavoters last November, that Afterthe entireinternational med.a jumped on the origi­ prohibits illegal immigrants from receiving any social servic­ nal New Republic story, New Yorker 1Vriter Sidney Blumen­ es, including medical care and schooling, except in emergen­ thal obtained a copy of the Nixon moyie into which Gramm cy situations. sank his $15,000. It included a sexuaDy explicit scene in the Since then, Wilson has repeatedly cited Prop 187 as an Oval Office. example of the Confederacy-inspired "states' rights" ap­ In a Presidential election campaisn in which Bob Dole proach he has enthusiastically embraced. has already made an issue out of Hpllywood' s corrupting Shortly after his reelection, Wilson gave a speech in influenceon America's younger genetlition, Phil Grammwas Washington, D.C., at the Heritage Foundation, one of the obviously the wrong man in the wrOJlg place at the wrong bastions of the Conservative Revolution, in which he asserted time.

EIR July 7, 1995 National 67 The company announced a net loss of $243,000 (amounting to 3¢ per share) for its third financial quarter, which ended March 31. Filings with the Securities and Ex­ change Commission revealed iliatEAI said it expects "reim­ bursable expenses" of $2.8 dlillion for the 1994-95 school year in Hartford-the same eJGpensesthat Golle now says are School privatization "negotiable." The report said EAI had generated a "sufficient savings" to offseta projected $chool appropriations deficitof 'experiments' fail $4.7 million, but was uncertain where it would findmoney in the budget to cover its own $2.8 million in operating costs. by Charles Tuttle EAl's predominant revenue in the past has derived from sales of company-owned financialsecurit ies. In no position to bargaia, lEAlwill likely accept whatever Education Alternatives, Inc. (EAI), the Minneapolis-based Hartford's school board agrees upon, even if that includes outfit touted as the leader among the much-advertised few of the company's recom:mended changes. The crucial "emerging industry" of education management organiza­ fact now at risk of coming to the fore , if the board doesn't tions, has run into trouble, as educators and parents, wary accept the sort of change that �AI advocates, is the nagging of their privatization schemes, recently voiced protests in question, "Why have the company here at all?" Baltimore, Maryland and Hartford, Connecticut. The cities are the company's prize contracts, examples of the greatest Is this any way to educate children? inroads nationally of the Conservative Revolution doctrine Baltimore, with its "sweetheart deal of a lifetime" with for privatized schooling which is keeping EAl's fledgling ' EAI, pushed through by a fre&zied "reform" mob during the operations afloat. summer of 1992, is now acknowledging extreme doubts. Severe scrutinyis now focusing on EAl's modus operan­ Even Mayor Kurt Schmoke ' has admitted disappointment di of projecting inflated educational expectations along "re­ with results from EAl's outcqme-based, multi-intelligences form" lines to secure public funds, while getting rid of teach­ "Tesseract Way" learning methods. Test scores have fared ers and imposing ever more austere management to maintain poorly for EAI-run schools! in comparison with district its profits. EAI won its deal with Hartford last fall to run all schools, and Schmoke is fating a tough reelection battle the city's public schools, and EAI has since proposed cutting from among EAl's harshest Critics. The press, usually the 300 staff positions while increasing class sizes. Like most staunchest of reform advoca¢s, has revealed that EAI has cities suffering from disintegrated, post-industrial econo­ siphoned off$18 million in extra funding to run its 12 schools mies, Hartford is struggling with a $171.1 million education within the 182-school system in the past three years. Closer budget, and EAI is attempting to shift millions away from examination of the contract showed that EAI, based on in­ teacher's salaries (last year's budget devoted 80% to staff flated enrollment projections that were never realized, was salaries) into cheaper computers, textbooks, and superficial allowed to pocket most of tHe extra proceeds that resulted building repairs, displaying deceptive, quick-fix "improve­ from a $270 per student surplus. EAl's contract demanded ments" yet all the while preserving profitopport unities. that it be paid the same as the district's projected allotment Raucus debates have ensued in past weeks over plans for per student, but EAI schools don't have to pay for higher-cost this year's budgetary appropriations, as Superintendant of special education such as vocational or alternative schools Schools Ed Davis has resisted the EAI-proposed teacher cuts, within their Tesseract framework. Schmoke now says he along with many other so-called reforms. Ironically, the wife misunderstood the EAI "cost-neutral" proposalto mean EAI of Mayor Michael Peters , who was key in arranging the schools didn't need more money, i.e., he hoped that the city hiring of EAI, stands to lose her school paraprofessional job wouldn't have to increase funding to pay for it. under the proposals. Superintendant Walter Amprey, an EAI adherent, has EAI Chairman John Golle now says he wants to renegoti­ admitted some doubt as to the effectiveness of the Tesseract ate its five-year management contract with Hartford, and is program, while maintaining a "it's too early to tell" stance seeking to have EAI paid a set fee or percentage of the public on the poor (and previously dtceptively bolstered) test score till in the future. The city challenged numerous expenses results. Amprey insists that EAI is no different than compa­ upon receipt of its first set of bills from EAI in early May, nies that sell the city school: supplies and that the system which included nearly $150,000 in travel expenses, $1.6 "paid to learn" from EAI. Ip keeping with the America! million for the rental of two condominiums, and hundreds of Goals 2000 "reforms," Amprey says the Tesseract (EAI) thousands in unsubstantiated construction costs. Golle also "experiment" has been worth the cost as a model for moving now says EAI "never intended to actually seek payment" for money and authority away from the board of education to the some aspects of the bills. schools themselves.

68 National EIR July 7, 1995 County-USC Medical Center has �ore than 65,000inpa­ tient and 850,000 outpatient visits M" year. Terry Bonecut­ ter, chief operating officer of Children's Hospital Los Angeles and 13 other Los Angeles ; county administrators indicated they would help solve the immediate and long­ term shortfalls. Health Director Robc:rtC. Gates, however, Localbudget crises indicated that previous studies by the) Los Angeles Medical Association revealed that private hospitals could not absorb spellharsh au sterity the projected emergency room visits, leaving 200,000 such visits unaccounted for. Forty percentl of the patients treated by Mel Klenetsky at County-USC are indigent, comp�d to 2% in the private hospitals, which shows who would :suffer most under the Reed plan. Taking the budget axe to the meat of such municipal and Analysts estimate that an equal number of "indirect jobs" county government structures as Los Angeles County, New will be lost as a result of the cuts: that is, given the 18,255 York City, and Washington, D.C. fitsin well with the policy proposed cuts from the county workfQrce of 88,811, another prescriptions that the Gingrich "Contractwith America" ad­ 18,000 indirect jobs could be lost in the restaurant and service vocates have put forward for the federal budget; yet, few of sectors. i these balanced-budget fanatics have considered the impact In 1978 California voters passed! Proposition 13 which of these measures, both economically and from the stand­ places a cap on property taxes, the�by creating a revenue point of the social and political turmoil thatsuch harsh auster­ gap for counties like Los Angeles. Th4 gap was filledby state ity will necessarily unleash. revenues, which have more recentl� dried up, due to the Days after the June 19 announcement of proposed budget collapse of the defense, aerospace, an(lcomputer-electronics cuts by Los Angeles County Chief Administrative Officer industries in California. Since 1991, the state has been offi­ Sally Reed, 1,000 demonstrators marched on the Los cially declared in a deep and prolonged recession. More than Angeles County Hall of Administration in protest. "Reed to 20% of the residents are on public asslstance in Los Angeles L.A. 's Sick: Drop Dead!" was emblazoned on the sign­ County alone. In 1993, state official�, desperate to balance boards. Placards and slogans targeted Reed, whose proposal their budgets, shifted more than $1 billion in property taxes to slash $1.2 billion to close the deficit now appears before fromthe county to the state's coffers. I the five county supervisors. These specificdevelopments refief;:tpart of the problems Reed's plan is an $11.2 billion Los Angeles County bud­ for Los Angeles County, but, like Ne\fYork City and Wash­ get that proposes laying off 18,255 county employees and ington, D.C., it faces the same basic budget crisis that the closing down the L.A. County-University of SouthernCali­ federal government faces. Physical economist Lyndon forniaMedical Center, along with four comprehensive health LaRouche, in his radio interview wi� "EIR Talks" on June centers and 25 neighborhood health centers. Additionally, 28, defined the problem from the stapdpoint of a 50% col­ 12-15 out of the county's 87 county libraries will be closed. lapse of productivity and consumptiqn levels of the typical Reed rounds out her plan with $65 million in cuts from the American, in the past quarter-century, which has led to the sheriffs office, a 20% cut in the municipal and Superior collapse of the tax revenue base. I Court budgets, some 2,300layof fs for the welfare staff, and "Now, any officialof a state, localj or federal government a cut of $7 million for the parks that would necessitate closing who pays attention to figures, can tel, you that the problem 30 parks, including six public swimming pools. of the federal budget, and of the state budgets, and of the local budgets, is that the tax revenue base has collapsed," Axing health care for the indigent LaRouche stated. "That means that we're poorer, and we're Two-thirds of the job cuts, 12,600,and $655 million out poorer by about 50% in real terms, than we were 25 years of $1.2 billion of the proposed budget cuts come from the ago ....What we have to do, is to st�p this silly discussion Department of Health, and the closing of County-USC Medi­ about 'cutting the budget,' and begi� cutting out some of cal Center represents the biggest chunk of that. County-USC those policies like the derivatives poli4Y, which areresponsi­ Medical Center requires $1.3 billion modernization up­ ble for our mess, and go back to b�oming a productive grades, including meeting new earthquake codes, which is nation again." one reason Reed has put the medical center on the chopping I block, despite the fact that the hospital contains one of the New York's budget is no model county's three bum centers, treats most of the county's AIDS New York City has had an Emer$epcy Finance Control victims, and delivers 10,000 babies per year to high-risk Board since 1977. The budget crisiS for the city publicly mothers . blew up in 1975, when the city was forced to establish the

EIR July 7, 1995 National 69 Municipal Assistance Corporation, sell Big MAC bonds, that could erode the city's control over the upstate water­ and begin a massive austerity program. When the Financial shed. "We have a great water system," Hevesi said. "It is the Control Board was set up for the nation's capital this year, best asset we have in the City of New York. I'm not sure effectively ending the 22 years of home rule, New York there's any circumstance where it's justified to transfer the City was held up to Washington as some sort of model of title. " fiscal soundness. But, look at New York City's current Giuliani's budget also inclllldes an estimated $200million problems, 20 years after Big MAC. The case of New York surplus from the 1995 budget $d other uncertain projections, City underscores the budget-cutting fo lly that LaRouche which has led many to point out that the budget will have to describes. be reexamined within three months. New York City's budget New York Mayor Rudolph Giuliani has proposed a $32 was redone twice last year, once to patch up a $1.1 billion billion city budget that calls for the deepest cuts seen since gap. the Great Depression. Thesecuts include $101 million in so­ called welfare reform, $30 million more for a total of $75 Gingrich crowd takes aim at D.C. million fromthe municipal hospital system, a delay in com­ Washington, D.C. is another city facing major budgetary mercial rent tax-cuts estimated at $65 million, and an esti­ problems. The D.C. budget tror 1995 is $3.35 billion, and mated $165 million in cuts in overtime, hiring delays, and Mayor Marion Barry is trying to close a $722 million budget­ non-personnel spending. Giuliani's cuts are designed to fill ary gap. Barry has just receiv�d a $146.7 million loan from an estimated $3.3 billion budget gap. the U. S. Treasury, to which i� had to resortafter Wall Street The city budget calls for theBoard of Education to spend downgraded its bonds to "junk status. " In January,the newly $7.28 billion for the next fiscal year, down $470 million elected Barry inherited what be thought was a $400 million fromthe currentfiscal year. Inflation, higher enrollment, and deficit from the Sharon Pratt Kelly administration. Year-end contractual obligations leave the gap for this proposal at $900 audits in 1994 showed the deflcit at more than $700million. million. As plans were put forward, outgoing Schools Chan­ During her administration, Kelly had cut 2,000jobs through cellor Ramon C. Cortines, resigning because of his disputes layoffs and attrition. In 1993 :she adjusted the city property with the mayor and because of the budget cuts, announced tax year by pushing it back th(ee months, thereby getting 12 that the 32 community school districts and the high schools months of spending with 15 months of taxes and giving her­ they serve, would have to spend $125 million less in the self an extra $170 million. B� 1994, Congress intervened, coming fiscal year in order to comply with their part of the forcing Kelly to cut $140 mUIion in spending, a move that proposed cuts. After-school programs, a shorter school day, did not bode well for D.C. Services, or for her reelection and layoffs of teachers, guidance counselors, and assistant efforts. principals are among the many ways that districts will deal Marion Barry inherited bQth the budget mess and a Gin­ with the cuts. The central board will go for administrative grich-dominated Congress. As the "Contract on America" cuts and seeking concessions from the teachers union. The crowd moved their legislative agenda forward, they used City University of New York has announced that it will pressure to bring the Barry �dministration under control, raise tuition by $750 per year at the four-year colleges to creating a financial control boardheaded by Andrew Brim­ $3,200 and $400 per year to $2,500at the community col­ mer, a former Federal Reserve Board member, whose man­ leges. date is to oversee D.C. financ�sand rein in spending. The Transit Authority of New York City, according to Barry's latest draft proposals include a 2% commuter tax, documents released by the Straphangers Campaign, will re­ which requires congressional approval. In addition, Barry duce services to achieve savings. Subway riders will have to proposes payroll cuts, furloughs, reduced services, and other wait 2 minutes longer during the rush hours for 10 subway measures to reduce the deficit. The effects of these cuts, lines starting this fall, and 57 bus routes will undergo route previous and proposed, are epitomized by the testimony of changes that will increase waits. Police Chief Fred Thomas before a House Judiciary Sub­ A major feature of Giuliani's budget plan involves selling· committee on Crime. Thomll/l said that crime had begun to the city's reservoirs, water tunnels, sewers, and sewage treat­ rise again, after a significant drop last year, because the ment plants to the New York City Water Board, a public budget-cutting process had dpmoralized his underequipped authority created 11 years ago to run the system, for $2.3 department, pointing to a recent pay cut and restrictions on billion. Giuliani planned to use $400 million from the sale overtime as factors. Police officers in the nation's capital are for construction projects, including $200 million for repairs among the lowest paid in the region, he said. Efforts to of leaky roofs, peeling paint, and collapsed buildings for the improve operations by installing field computers, which school system. The Water Board would raise the $2.3 billion would reduce time to proce$s arrests from 4 hours to 40 by selling its own bonds. minutes, have been set back by cuts, despite the $10 million City Controller Alan G. Hevesi announced on June 28, he has spent over the past two years for computers. The that he would block the plan as a risky "fiscal gimmick" volume of crime is up 10%.

70 National ElK July 7, 1995 Money laundering becomes higher priorityin war against drugs . by Joyce Fredman

Two prominent law enforcement executives stressedthe im­ It is indeed heartening to hear law enforcement officials portance of a concentrated effort against drug money-laun­ espouse views which this news service put forth in 1978, dering, in interviews on June 26. Both the president of In­ with the publication of Dope, Inc. Considered to be radical terpol and the director of the Federal Bureau of Investigation at the time, the book noted that only by hitting at the money in Puerto Rico have emphasized the need to aim high in order laundering can the drug traffickers be $topped. for the war on drugs to be effective, and high means the money. Going after the money-laundering networks has become Interview: Bj orn Eriks on a more and more prominent feature in the past few years. � "Operation Dinero," disclosed last December, grabbed head­ lines with its multi-agency sting of the Cali Cartel. Thomas ElK: What money figuresdid you gi'fe? Constantine, head of the Drug Enforcement Administration, Eriksson: The turnover worldwide i$ expected to be $400 said at the time of the arrests, "The laundering of illegal billion, of which 25% is estimated toibe money-laundered, drug profits is as important and essential to drug-trafficking in the legal banking system. organizations as the very distribution of their illegal drugs. Without these ill-gotten gains, traffickers cannot finance the EIR: Can you elaborate? , manufacturing, transportation, and distribution, or the vio­ Eriksson: If we start with the Afric� angle of it, I men­ lence, murder, and intimidation that are essential to their tioned that there was a clear risk for ",frica, that they would illegal trade." get more and more involved in it. P�y because with South More recently, the indictment of former Justice Depart­ Africa as a base and the surroundin� countries with some ment lawyers, such as Michael Abbell, raised the specter of facilitation, you have a communicatiolls system, you have a so-called establishment types protecting and facilitating the network. . . . You could add to this thllt a country like Zam­ drug mafia. bia, for example, [went] from, I think it was two commercial Bjorn Eriksson, president of the International Criminal banks , up to, was it 40, during the las_ 10 years. There are a Police Organization (Interpol), recently spoke in Zambia at lot of indications that this might be a very hot place. the 13th African Regional Conference. In his speech, he If you take money laundering in a more general sense, I, warnedof the dangers facing nations that have adopted poli­ and many people with me, always argue that the only point cies of "economic liberalization," i.e., free trade. "By ex­ where you can reach the big fish, s� to speak, is actually ploiting the liberalized market economy," criminals "buy the money. Because normally they dOJl't participate in drug professional assistance from lawyers . . . [and] have gained trafficking and, consequently, it's veIf difficult to get them a high position in the society by the business in which they "hooked" on that aspect. And you can � that in their security have invested their proceeds from crime. In this position, it system. Normally if you're talking aboutthe drugs, you have is more easy for them to associate with politicians and thereby a producer, a distributer, and a seller, and they all have to influence important legal decisions, for example actions different levels, which makes it up to !lO or 12, or 13 levels against money laundering." between the actual big fish and the li�e man on the street Eriksson, who became president of Interpol last fall, is who's buying. Whereas, when you taUe about money, there the Commissioner of the National Swedish Police, a position is only one or two persons in between, because you can't he has held for the past seven years. Prior to that, he was head take the risk of having too many peopl� involved. And conse­ of Swedish Customs. In a recent interview , Commissioner quently, that's the weak point. Eriksson, who has a wife and two daughters, reiterated some of the points he has traveled the globe discussing. ElK: Is there anything else you would like to add?

ElK July 7, 1995 National 71 Eriksson: The conclusion of this is, of course, that organi­ lem. Flights between here and the mainland are [considered] zations like Interpol, have a say. I know I am speaking as domestic flights. So all of that makes it very attractive for president ofInterpol, because being a global worldwide orga­ money laundering. nization we have some advantages over the regional organi­ zations, just due to the fact that we cover the globe. There EIR: In the same paper, it w�s asserted that the governorof are many moves nowadays between the continents, and I Puerto Rico, Pedro Rusello, $ated that Puerto Rico is more think this is something Interpol should take advantage of. fertile ground for drug trafficthan Florida. Again, this wasn't in quotes, so I'm not clear ex�ctly what was said. Schwein: I would not want t� comment on what the gover­ nor said or on what he meant, but yes, Puerto Rico is very Interview: Richard D. Schwein fertile ground.

EIR: Many say that the United States needs to do more in Puerto Rico has emerged, unfortunately, as one of the leading this area. Now, I have inten1iewed people in the Office of strongholds for drug running. In March of this year, 27 out National Drug Control Policy, including Director Dr. Lee of 29 members of the Puerto Rican Senate submitted to drug Brown, and I know they haVJe been setting up these High­ tests. The governor, Pedro Rossello, had asked the U.S. Intensity Drug Trafficking Ateas (HIDTAs), including one Department of Justice to investigate allegations that four leg­ in PuertoRi co. So it seems to me as though the United States, islators are linked to the drug business itself. One of the especially now, is making substantial efforts in this area. senators, suspended as vice president of the Senate, was Schwein: Great efforts, yes, very great efforts. Our staff accused of "transferring millions of dollars to banks in Swit­ has, as has the DEA; and w� have HIDTA, which is just zerland, the Cayman Islands, and Panama." being implemented now . It's Iitarget-rich environment, how­ One of the key fighters on the anti-drug front there is ever. We have a lot of targetsito work on. Special Agent in Charge, FBI San Juan, Richard D. Schwein. Known as the "director" in Puerto Rico, Special Agent EIR: Yes, I saw what is haPpening with the Senate-the Schwein handled "Operation Golden Trash," the indictment level of alleged corruption. dan you explain for our readers of a large-scale cocaine-trafficking and money-laundering what jurisdiction the United $tates has over that? ring based in Colombia. Schwein has been with the FBI for Schwein: Federaljurisdictio� applies to the citizens ofPuer­ 38 years, and has been stationed for the past 13 months in to Rico, like it does to the citizens of Ohio. Everybody here Puerto Rico. He is originally from Cincinnati, Ohio, and has is a U.S. citizen by birth. been married for 35 years. He has two children, one of whom is also an FBI agent, and two grandchildren. EIR: So these Senate members or anyone else- Recently, El Nuevo Dia, a Puerto Rican daily, drew at­ Schwein: If there is political corruption, we work on it and tention to the problem when it quoted Schwein saying that the U.S. Attorneys indict it aM prosecute it, and it would be "Puerto Rico is the main drug-laundering center in the world handled herejust like it wou� be anywhere else. Under the . . . megamillion of dollars' problem." SAC Schwein clari­ corruption laws, under our wltite collar crime program . fiedhis comments to this reporter. EIR: And where would that �ake place? EIR: What exactly did you say, and what did you mean? Schwein: We have U.S. iDistrict Court here; this is Schwein: I said that Puerto Rico is among the leading places America. Puerto Rico is a coptmonwealth, of course, semi­ for money laundering, which it certainly is-it's big, big self-governing in that it hasi a governor and a legislature, business here. Whether it's number one or number ten, I like Ohio or Alabama. But alI federal laws apply here. And don't know, nor does anyone else. I meant, and sometimes everyone here gets treated jdst like everyone else who is a the translation isn't very good, it is a major money-laun­ U.S. citizen, as far as the fe�eral law goes. We have seven dering center. federal judges, a United St4tes Attorney, a United States Marshal, FBI, and DEA. Ttj.ere's just no difference, other EIR: Can you give us an instance? than geographical. . . . i Schwein: For example, we indicted a case about six months ago which involves somewhere around 80 people who laun­ EIR: It seems that money l.undering in particular is more dered somewhere between $40 and $80 million. We ran an and more in the limelight. operation against them and were very successful. Schwein: Oh yeah ! It's the Imoney, who's got the money. But the reason Puerto Rico is [so ideal] , is its location, Money laundering has to be an integral part of any drug off the coast of South America; we have an American banking investigation. That's where the real profits are. Withoutthe system, and once you're in country, there's no customs prob- money, where would they bd? You have to go afterthat.

72 National EIR July 7, 1995 How DOJ officialM ark Richard. won the CIA's 'coverup award' by Edward Spannaus

In our last issue, in the article by this author entitled "John The finnBi shop Baldwin was used by the CIA both as a Keeney, Mark Richard, and the DOJ PennanentBureaucra­ cover for its agents, and also directly fpr intelligence gather­ cy," EIR reported that Mark Richard, the number-two career ing throughout Asia where the company solicited invest­ officialin the V. S. Department of Justice Criminal Division, ments. Rewald said later that the CIA commingled its funds had received an unusual award from the CIA in 1986. It with funds from legitimate investors, sb that the covert funds is called the "Central Intelligence A ward for Protection of could not be traced. Many of the CrA. officers and agents National Security During Criminal Prosecutions." invested their own funds in the openition as well. Rewald EIR has now learnedwhy Richard was recognized by the lived well, and socialized with politicians, movie stars, and CIA. In response to a question from this writer, CIA Public the like, including Vice President George Bush. When Adm. Affairs officer Mark Mansfield conducted an inquiry, and StansfieldTurner headed the CIA, he used Rewald's car and then responded that Mark Richard had received that award driver when he came to Honolulu. "in connection with his outstanding work in the case against In 1982, the IRS began an investigation of Bishop Bald­ Ronald Rewald." win, which was stalled by the CIA's intervention. In 1983, a Asked if any other prosecutors had ever gotten this local consumer protection agency began an investigation into award, the CIA spokesman said he was not able to say who Bishop Baldwin; when the probe was publicized on local TV, else had gotten the award, but he added: "We don't give it now-retired CIA officerKindschi pulled out $170,000 from out lightly. " the company's accounts. By this time, the IRS, the V.S. This writer has since spoken with most of the attorneys Securities and Exchange Commission, and other agencies involved in the defense of Ronald Rewald and his subsequent were all interested. appeals. None of them was aware of the award, and, in fact, Rewald was forced to file for ptbaJllkru cy, and, in the most of them seem only vaguely aware of who Mark Richard spring of 1984, he sued the CIA. He !laid in his suit that he is. But when the honor was described, one attorney involved had established the finnat the CIA's direction, and that some in the case quickly remarked that it should be entitled "the of its subsidiaries were "used completdlyand exclusively for Coverup Award." CIA operations." Rewald said in an affidavitthat "I am, and To the list of abuses ofjustice and coverups catalogued for the past fiveyears have been, a covert agent for the Central in the Sp ecial Report in our last issue, must be added the case Intelligence Agency." He also asserted that "there are 10 of Ronald Rewald. This case further demonstrates the corrup­ employees in Bishop Baldwin who � full-time covert CIA tion of the encrusted pennanentbureaucracy in the Depart­ agents." ment of Justice, and shows why it must be cleaned out at once. The CIA denied everything-or almost everything. It denied that it had any role in running Rewald' s company, The CIA opens a new front admittingonly thatit had"a slight involvetnent" with the finn. In 1978, after having been convicted of a minor invest­ ment scam in Wisconsin, Ronald Rewald moved to Honolu­ Mark Richard's team lu, Hawaii, and opened an investment company there. Simul­ That was just the beginning. In late-August 1984, Rewald taneously, he made contact with the local CIA chief, Eugene really got hit. He was indicted on 100 counts of mail fraud, Welch, and had Welch and his wife to dinner. He met securities fraud,tax evasion, and perjuIty. According to Jona­ Welch's replacement as head of the Honolulu CIA office, than Kwitney's book The Crimes of Datriots, Rewald was Jack Kindschi. Rapidly, Rewald and his family became ex­ held in prison on a $10 million (!) bail, and a federal judge tremely close to Kindschi and his wife. Rewald was given a put restrictions on his visitors. At the request of the CIA, "secret" security clearance in the fall of 1978, and before Rewald's lawyers were barred from r¢peating what he told long, his new company, Bishop, Baldwin, Rewald, Dilling­ them by a gag order. Case records, nonnally public records, ham & Wong, was laden with intelligence agents, retired were sealed, and Rewald was ordered notto discuss the CIA. military officers, and other assorted spooks. Nothing about the case was handled nonnally. One of the

ElK July 7, 1995 National 73 Rewald matter, there were man such in camera submissions made to the court.

A deaf and blind jury To those familiar with the t�al of Lyndon LaRouche and his associates in the EasternDi strict of Virginia (Alexandria) which took place three years lAter, the 1985 trial of Ronald Rewald will bear an uncanny r�semblance. Let us divert for a moment to recall some of the pertinent features of the LaRouche case. In the LaRouche case, the j� dge issued an order directing that evidence as to "intelligenc or security activities directed at the finance and political acti ities of persons and organiza­ tions will not be admitted." Th� judge also barred any refer­ ence to the fact that the govern ent had initiated an unprece­ dented involuntary bankruptc�+ proceeding , which had shut down and padlocked three pubhshing companies run by asso­ ciates of LaRouche. Under tHe terms of the government­ initiated bankrupty order--obt I ined in an ex parte, in camera proceeding of which no reco d was kept-the companies were prohibited from repaying lenders who had made loans to the companies to assist their �olitical activities; the govern­ ment then indicted LaRouche ahd his associates for failing to repay those very loans ! In Rewald's case, the jUd I e ruled that Rewald's ties to Justice Department's top experts on classified information the CIA were irrelevant to the c� arges against him. The judge and national security cases, Theodore Greenberg, had been declared that he "saw nothing in the documents to indicate flown in from Alexandria, Virginia to handle the grand jury that any of Mr. Rewald's invo�vement with intelligence ac­ proceedings and the indictment. As we noted in our last issue, tivities explains any of the fin1ncial actions." Therefore, no Greenberg had aided Mark Richard in the coverup around evidence concerningthe CIA ras permitted in the trial. the Terpil-Wilson case; he had also handled numerous other What was permitted was an endless parade of Rewald's espionage and intelligence-related cases in the Eastern Dis­ "victims" before the jury , incl ding a blind man and a cancer trict of Virginia (which district includes the Pentagon and victim who claimed that Rewa�(1 had stolen their life savings. . � �a�. Then another group of "victims" took the stage: former Greenberg wasn't the only arrival from Virginia. A few CIA officers. An article in the ashington magazine Regard­ days after the Bishop Baldwin case hit the press, a lawyer described the scene as foIlt ws: , ie's named John Peyton joined the staff of the U.S. Attorney in " 'I don't want to appear patsy,' said Jack Kindschi, a Hawaii. Peyton was no ordinary lawyer either: For about five retired CIA station chief, 'but I dropped my guard. I was years, up until 1981, he had been the chief of the litigation raised in the small farm to n of Platteville, Wisconsin, section of the CIA; then he is reported to have worked on where no one locked their doo s.' George Bush's South Florida Task Force on narcotics­ "With tears in his eyes, indschi told the jury he had known to be riddled with intelligence agents. Then he invested his 86-year-old motj er's life savings in Rewald's I showed up in Honolulu for the Rewald case-just by "pure, investment firmand lost it all. he Kindschi family was taken utter coincidence," he told Wall Street Journal reporter for $300,000 .... Kwitney. " 'Mr. Kindschi was taken 'n hook, line, and sinker,' said There was obviously a third, less visible member of the prosecutor John Peyton. 'In f ct, the CIA became Rewald's team: Mark Richard. Richard is the Justice Department's victim as well.' " official liaison to the CIA. In any case involving the intelli­ Other accounts demonstra�e that Kindschi was hardly the gence agencies and classifiedinforma tion, much of the action naive victim he painted himseif to be. He had "retired" from is behind-the-scenes and carried on secretly-even out of the the CIA in 1980 to become a Jonsultant to Bishop Baldwin, view of the defendant and his attorneys. Submissions are and he brought his successorjas head of the CIA's Hawaii made to the court in camera (in secret) and ex parte (without office into Bishop Baldwin a a consultant also. He helped the defendant and his attorneysbeing allowed to participate). . prepare promotional brochure� for Bishop Baldwin describ­ Thus, the defendant does not even know what the judge is ing the firm in glowing terms as "one of the oldest and largest being told about him. According to those involved in the privately held international in�estment and consulting firms

74 National EIR July 7, 1995 in Hawaii. . . . Over the last two decades we have served the Rewald, and the 18-month sentence oh Wong, as a resultof investment and consulting community with an average return the fact that the judge didn't like �e defendant Rewald, to our clients of 26% a year. " didn't like his defense strategy, and c�rtainly didn't like the Knowing full well that the company had only been creat­ CIA being tarnished. Wong, on the other hand, "rolled over ed in 1978, Kindschi wrote: "The brick and mortar founda­ and took a deal. " tion of Bishop, Baldwin, Rewald, Dillingham & Wong has Was Rewald telling the truth? A 'fonner United States been deeply rooted in Hawaii for more than four decades." Attorney for the Eastern District of Virginia, William B. Kindschi also knew that Rewald and Wong were the only Cummings, thinks he was. "Rewald �learly was telling the named partners who existed; "Bishop," "Baldwin," and "Dil­ truth when he said he was working for, or under the auspices lingham" were just old-line names picked out of the Hawaii of, the CIA," Cummings said recent�y. "He was clearly a social register. front-man for them." Cummings says he cannot comment on But, with such a parade of "victims," and Rewald's in­ the alleged criminal conduct charged i to Rewald, but he is ability to present any evidence to the jury regarding the CIA's certain about the CIA's involvement-lwhich was kept from involvement, the outcome was a foregone conclusion. The the jury. jury quickly found him guilty on all counts. The keeping of that infonnation fr(,m the jury is the cru­ Rewald was sentenced to 80 years in prison-a sentence cial issue-and that is where Mark Rithard comes in. Mike so outrageous that it only compares to the 77-year sentence Levine, itfederal public defender who tepresented Rewald at meted out to LaRouche's co-defendant Michael Billington the trial, was recently infonned about Richard's award from after Billington was unjustly convicted of "securities fraud" the CIA. Levine said that the award sJltould be "for keeping by the state of Virginia. relevant, and critical, infonnation from ajury." Rewald's partner Wong must have seen the handwriting Under current federal sentencing guidelines, Rewald's on the wall. He didn't put up a fight, pled guilty, and received sentence would have been less than 1� years, and probably an 18-month sentence, and, according to sources, he only less than 5. His realcrime seems to ha�e been to tell the truth served six of the 18 months. about a rogue CIA operation. For attenlpting totell the truth, One source familiar with thecase explains the discrepan­ he got an 80-year sentence. For keepint him fromdoing that, cy between the 80-year (960-month) sentence imposed on Mark Richard got an award.

David Schiller, testified in a hearing that he had consulted with Greenberg about the bankruptcy seizure in the The dirtyrole of LaRouche case. ! Ted Greenberg "Mr. Greenberg had prosecuted the Rewald bankrupt­ cy," Schiller testified, describing holw Greenberg had called him for advice on the Rewald �ase. Schiller then Two of the most dramatic events preceding the Alexandria testified that "he thought the approac� that I took in the trial of Lyndon LaRouche were the 400-man raid on the bankruptcy in Alexandria [LaRouche] 'fas innovative and officesof LaRouche' s associates in October 1986, and the interesting . . . and that he would want to call and talk to involuntary bankruptcyin April 1987. In both events, the me about it from time to time." hand of Ted Greenbergsubsequently became visible. Greenberg went on to head the �oney Laundering Two truckloads of documents were seized in the Octo­ Section at Justice Department headqul\.rters. In February ber 1986 raid. The trucks were immediately driven to of this year, he was detailed to the staff of Independent Henderson Hall, to a secure building at U . S. Marine Corps Counsel Donald Smaltz, the specialpr oisecutor investigat­ headquarters in Arlington, Virginia. How was this ar­ ing fonner Secretary of Agriculture Mike Espy. This is ranged? Through the Special Operations Agency at the not so strange when one realizes that �maltz is based in Joint Chiefs of Staff, using the secret channel through Little Rock, Arkansas, and is workiqg in tandem with which CIA requests for military support are directed to Whitewater special prosecutor Kennetlt Starr. With alle­ the Defense Department. In a letter to the director of gations fiying all over the place of cIA;drug-running and the Joint Special Operations Agency, Assistant Attorney money-laundering out of the air field at Mena, Arkansas, General William Weld stated that "Assistant United States the trick is ' obviously to find a way o� nailing President Attorney Theodore Greenberg, from the Eastern District Clinton without exposing the covert operationsrun out of of Virginia, has infonnallycontacted [deleted] to inquire Arkansas by George Bush, Oliver North, and elements of about the availability of secure space." the CIA in the mid- 1980s. It is an ass�gnment for which The Justice Department's top bankruptcy expert, Ted Greenberg is eminently qualified.

EIR July 7, 1995 National 75 by WilliamJones and Osgood Congressional Closeup carl

ongressmen cool to reached a conclusion in the Security must not take steps that make it more BritishC defense minister Council about the mandate of the Rap­ difficu. to achieve that historic end." British Defense Minister Malcolm id Reaction Force. . . . Discussions Such a measure at the present time Rifkind met a cool reception from continue with the Dutch, with the would �e the death-knell for the Mid­ congressmen at a meeting of the West French, and with the British and, east pe�ce accords because Jerusalem European Union, held on Capitol Hill frankly, we are not hearing consistent is a holy city for Muslims and Chris­ on June 21. Rifkindrailed against the views from all three countries about tians as well as for Jews. The Palestin­ growing U.S. opposition to Unprofor the specificsof the mandate." ians al�o consider Jerusalemthe capi­ (U . N. protection forces) operations in Both the Senate and the House tal of Palestine. In order to move the Bosnia. have passed resolutions calling for lift­ peace process forward, Israel and the Sen. John McCain (R-Ariz.), in ing the arms embargo, which would Palestipians took the issue off the ta­ his opening remarks, insisted that enable the Bosnians to counteract the ble, p<$tponingany decision on Jeru­ Bosnia was "not a failure of NATO," tremendous advantage the Serbs have salem llmtil l996. but rather "a failure of the U.N. be­ in heavy artillery. Rifkind received a cause it cannot either enforce or make further snub when Senate Majority peace." McCain said that there was Leader Bob Dole (R-Kan.) could not tremendous opposition in Congress to findtime for a meeting with him. the new Rapid Reaction Force (RRF), with many members skeptical about os er nomination falls funding it. Although the idea of the Fvictu ni to electioneering RRF was to to "beef up" U.N. opera­ The noPrinationof Henry Foster to be­ tions to enable the forces to fulfill the hristopher cautions come $urgeon General is stalled. On U.N. mandate, "we haven't seen what CongressC on Jerusalem June 22, a final vote in the Senate to the RRF would do except more of the In a letter dated June 20 and sent to break � filibuster launched by Phil same," he said. House Speaker Newt Gingrich (R­ GrllIIlqt (R-Tex.) to block his confir­ In response, Rifkind snidely re­ Ga.) and Senate Majority Leader Bob matiOI� , failed, garnering only 57 of marked that "those who are not in­ Dole (R-Kan.), Secretary of State the 60 Ivotes needed. Gramm, a presi­ volved in the operation shouldn't criti­ Warren Christopher labeled the Sen­ denti candidate, was desperately cize those who are on the ground in ate measure (S. 770), which calls for trying�to play up to the Christian Coa­ Bosnia. . . . The British, the French, moving the U.S. Embassy in Israel liton (1m one of their pet issues­ and the Dutch have to prove to them­ from Tel Aviv to Jerusalem, "ill-ad­ abortiqn. selves and their publics whether it's vised" and "potentially very damag­ M4anwhile, some Republicans worth sending young men to go face ing" to the success of the Mideast are usiPg the ruckus over the nomina­ to face with the Serbs ....This is peace process. tion a� a pretext to ".zero out" the Of­ a much more difficult question then The secretary of state warnedthat fice o� the Surgeon General entirely, merely sending money. " the step "would disrupt the negotiat­ possibly by merging it with the post of ' The RRF was an idea put forward ing process and the promotion of assis t secretary of health. Senate by French President Jacques Chirac Middle East peace," an issue, Christo­ Majo� ty Whip Trent Lott (R-Miss.) following the kidnapping of U.N. pher underlined, that has been one of has c ,led for abolition ofthe position. peacekeepers by the Bosnian Serbs in President Clinton's "key priorities in And i� the House, Robert Doman (R­ retaliation for NATO air strikes. Even foreign policy. " Calif. and 33 other members have the Clinton administration, which is Christopher wrote, "Our support called or House conferees on the bud­ supporting the RRF in "solidarity" for Israel will remain strong and stead­ get re olution to accept the Senate's with its NATO partners, has ex­ fast, and we will work actively to help call fi r abolition of the post, which pressed growing concernthat the RRF Israel achieve peace with her neigh­ they scribed as "unnecessary" and will indeed be "business as usual" for bors. . . . Given the extraordinary "large y symbolic." Unprofor. progress of the last two years , that ob­ PitsidentClinton said the Gramm In response to a question on June jective appears, for perhaps the first obstruCtionismon the Foster nomina­ 23 , State Department spokesman time in history, to be within our tion "sent a chilling message to the Nick Bums said, "We have not reach." Therefore, he concluded, "we rest o£ the country. "

76 National EIR July 7, 1995 unn questions value be done in a "gradual and transparent areas which are l�ely hard and soft ofN NATO expansion way," so that Russia will understand infrastructure, would lose $190 bil­ Sen. Sam Nunn (D-Ga.), in a speech what is happening. Russia should lion in funding over seven years. to a NATO seminar in Norfolk, Vir­ have a voice in this process, he said, In commentingon the Republican ginia on June 23, questioned the wis­ but not a veto. budget on June 20,! President Clinton dom of NATO expansion. He said that warned that it would cause "unneces­ while the advantages of expansion sary pain." The legislation would also can't be ignored, "the serious disad­ entirely eliminate $e Commerce De­ vantages must be thought through partment, a key institution in Presi­ carefully." He warnedthat "if NATO dent Clinton's overall foreign policy enlargement stays on its current ax cut gets go-ahead initiatives, including the Mideast course, reaction in Russia is likely to fromT conferees peace process. be a sense of isolation by those com­ Republican leaders in the House and mitted to democracy and economic re­ Senate struck a deal on June 22 to cut form , with varying degrees of para­ a variety of income and investment noia, nationalism, and demogoguery taxes by $245 billion over the next emerging from across the political seven years . The accord was an­ onservative !Revolution spectrum." Russia could still threaten nounced by Speaker of the House targetsC vaccinations European stability by putting pressure Newt Gingrich (R-Ga.) and Senate Rep. Scott Klug (�-Wisc.) has intro­ on Ukraine and the Baltic countries, Majority Leader Bob Dole (R-Kan.), duced legislation that would eliminate and could threaten the rest of Europe who both cast it as the finalagreement Vaccines For Children, a program by putting its remaining nuclear forces on the budget negotiations that have which was set up by PresidentClinton on a higher alert status, he warned. taken three weeks. in 1993 in order tQ close the gap in At the conference of the Western The proposed tax cuts would in­ immunization and to reachchildren in European Union, on Capitol Hill on clude a $500-per-child tax credit for impoverished area* who previously June 21, Clinton administration offi­ most families, a reduction in the capi­ were not helped by vaccination pro­ cials affirmed NATO's Partnership tal gains tax, a new Individual Retire­ grams. for Peace program as an essential part ment Account, elimination of the mar­ The program is �xpected to spend of U.S. foreign policy. Amb. Richard riage tax penalty, and business tax millions of dollars ht is yearproviding Holbrooke, assistant secretary of state breaks. children on Medicaid or whose health for European affairs, said, "All of the This tax cut, originally slated to insurance provider {vill not cover vac­ countries of eastern Europe are look­ be $354 billion by the House, had cines, with free vaccine against the ing to western Europe and the United been the main bone of contention be­ leading childhood Itiller diseases, in­ States to extend an institutional em­ tween the House and the strict budget cluding measles, niumps, polio, and : brace," and that, even though this is a deficit reductionists in the Senate, whooping cough. long and complicated process, "we're with many RepUblicans fearing that a At Klug's req�est, the General ! committed to that process." such a "tax cut for the wealthy" would Accounting Office had conducted a Assistant Secretary ofDefense for not sit well with the voters in a budget study of the pro�, and its report International Security Affairs Joseph that otherwise gouges major areas of had been highly critical. Nye, Jr. called the Partnership for necessary social spending. Aimed at Speaking on ABC's "This Week . Peace program "an institution that will eliminating the deficit by 2002, the with David Brinkley" on June 25, exist long after somecountries in east­ plan would curb the growth of Medi­ Vice President Al Goresaid that it was em Europe have joined NATO." It care by $270 billion, slash Medicaid "troubling to see the United States provides a way for nations to have a growth by $180 billion, reduce inter­ way down on the I list of countries relationship with NATO. est subsidies on student loans by $11 around the world in �rmsof vaccinat­ There is little opposition to Part­ billion, and cut farm subsidies by $13 ing children against diseases." Gore nership for Peace, but regarding the billion. The $250 billion a year in said the administration might be will­ expansion of NATO, however, the discretionary spending that includes ing to make some changes to improve ranks are indeed divided. Even Nye education, housing, transportation, the program, but �ould' not agree to insisted that NATO expansion has to the environment, and other domestic scrap it.

EIR July 7, 1995 National 77 NationalNews

Sen. Lauch Faircloth (R-N .C.), a rabid op­ unable to [payits own bills. ponent of President Clinton who has California's state budget deficits began pumped up even the tiniest allegations of skyrocke*ng in the late 1980s, and dramati­ RTC report vindicates scandal into massive rhetorical balloons, cally wor$ened due to wholesale shutdowns had in fact helped arrange Starr'sappoint­ of its aerospace and electronics industries Clintons on Whitewater ment to replace the previous independent during Q:orge Bush's occupation of the A report submitted to the Resolution Trust counsel. White Hdluse. In 1993, Governor Wilson Corporation (RTC) "corroborates most of "Of course," Tucker declared, "since rammed ,through measures enabling the President and Mrs. Clinton's assertions this independent counsel representstobacco state to sdizemajor chunks of local property about their Whitewater real -estate invest­ company interests as part of his million dol­ tax revellues and toss them into the ex­ ment " the Wall Street Journal claimed on lars a year income, not counting the panding �inkhole of state debt. More than ' June 26. The RTC, set up to oversee the fate $100,000 ayear he gets from taxpayers for $1 billiollwas dragged out of Los Angeles of U . S. savings and loan institutions which his job, it's not surprising to see a tobacco County. : went bankrupt during the mid-1980s, was state congressman, who was instrumental Mike ,Antonovich, a 15-year veteran of investigating the Clintons' financial deal­ in [Starr's]appointment by Judge Sentelle, the Los 1ngeles County Board of Supervi­ ings in Arkansas with Madison Guaranty makesuch charges. " Tucker was apparently sors, told!the Times that "ifthe state had not Savings and Loan, and the Whitewater De­ referringto the fact that Starris representing confiscated the $1 billion in tax revenues, velopment Corp. the British-owned Brown & Williamson To­ we woulc!ln't have the crises that we have According to the Journal, the RTC re­ bacco Co. in a case before the Washington, today. " l1hecounty also expected to receive port shows that the Clintons were initially D.C. Circuit Court of Appeals, at the same $600 miIlIion in federal and state aid this only passive investors in Whitewater Devel­ time that he is acting as the Whitewater inde­ year, wh�h never materialized. opment Corp., and had no active role until pendentcounsel. No a4justing ofthe books, however, can after 1986. Money transfers from Madison Tucker went on to blast Starr'sinvesti­ rebuild the collapsed economic base which Guaranty to Whitewater prior to 1986 are gation as one "where you investigate people has driven all levels of government into vir­ alleged to have contributed to Madison's and go through persons' lives, try to put tual banIfruptcy. County officials are cur­ collapse. The report also verifies,the Jour­ together a charge and then charge them with rently wrestlingwith proposals to eliminate nal stated, that the Clintons did lose the it .. ..Now , when you're granted that kind $1.2 billlon worth of public services, in $46,000 they claim to have lost in the of power in private life or in public life, hopes of!securing a $1.3 billion loan from Whitewater venture. there is a need to use with restraint the power Wall Str�et. The county already carries a The Journal noted that the report's find­ granted. This has not only been absent re­ debt of $V. 9 billion. ings have added significancedue to the fact straint, it has been overflowingwith abuse." that it was authored by Jay Stevens, who Govemor Tucker called Starr "a very was retained by the RTC despite being a thin-skinned man" who "wants to be a Unit­ Republican critic of Clinton. If the Jour­ ed States Supreme Court justice. He's made nal's account is accurate, the RTC report no secret of his ambition for higher appoint­ Cons rvative guru sees would cut the ground from under the origi­ ment by the next Republican administra­ nal Whitewater allegations against the Clin­ tion. This is his ticket to that higher ap­ 30-year¢ Republican rule tons. It might also provide the answer to pointment. " Grover Norquist, president of Americans why Whitewater special prosecutor Ken­ for Tax Reform and a crony of House Speak­ neth Starr and his army of FBI agents are er Newt pingrich (R-Ga.), told a luncheon going so far afield in their Arkansas witch­ meeting �f the American League of Lobby­ hunt and indictments. ists on lime 27 that the ruling Republican Governor Wilson sped up coalitio� will last as long as 30 years. One of the k�y premises in Norquist's scenario L.A. County bankruptcy is that more Democrats will die than Repub­ CaliforniaGov . Pete Wilson, widely billed licans. i Arkansas governor slams as the front-runner for the GOP Presidential Norquist described the Republican co­ nomination, played a major role in acceler­ alition as a collection of groups "who only Whitewater prosecution ating the Los Angeles County financial cri­ want the, government to leave them alone," Following his June 22 arraignment for al­ sis, the Los Angeles Times claimed on June citing thp National Rifle Association, tax­ leged campaign finance irregularities, Ar­ 25 . Mustering its powers of hindsight, the payers' fights and property rights groups, kansas Gov. Jim Guy Tucker made his own Times noted that Wilson's previous si­ small businessmen, and the so-called Chris­ observations concerning the corruption of phoning off of county property tax reve­ tian Co�lition as leading elements. The Whitewater special prosecutor Kenneth nues-to cover some of the state's massive Democratic coalition, Norquist claimed, is Starr and his promoters. Tucker noted that budget shortfalls-leftLos Angeles County not only!shrinking, but consists of groups

78 National EIR July 7, 1995 Brtlifly

.MARGARET THATCHER spent some extra down time with Fed chainnan Alan Greenspan, at a fare­ well party for $ritish Ambassador who are at each others' throats. Unlike the hired, when in fact he could findno doctor Robin Renwick in Washington on one fonned underPresident Franklin Roose­ willing to work for the low wages Esmor June 26. The Washington Times re­ velt, the current Democratic coalition "is was offering. ported that, besjdes stroking a few based on interests, not religion or trade He was also instructed to renegotiate a other Bush puppies at the event, union issues, and is therefore less likely to food-service contract, because $1.12 a day Thatcher spread pillows on the floor change." was considered too expensive for an in­ and settled down to a half-hour chat Norquist's version of a peekinto the fu­ mate's meals. An attorney forthe Lawyers with Greenspan. Thatcher was alleg­ ture went way beyond tea leaves in forecast­ Committee for Human Rights told the Times, edly in the United States to promote ing decades of GOP domination. If the Re­ "This facility was run on the cheap her new book, ThePath to Power. publicans go throughwith their plans to cut with guards hired off the street with no a trilliondollars from the federal budget by training." HENRY KISSINGER met re­ the year 2002, Norquist predicted, the result • The detainees, who were awaiting de­ cently in New Y()rk with Hollywood would be a shiftof 4 to 6 million jobs from portation hearings, and in most cases had actor Paul Sorvijlo, who wanted to the public sector to the private sector. That applied for political asylum, caused an esti-. size him up befo* playing Fat Henry would build the Republican majority, since mated $100,000 worthof damage to the cen­ in Oliver Stone'� forthcoming film "the peoplewho hold these jobs will beob­ ter, making it uninhabitable. They were "Nixon." Accordjingto an item in the jectively Republicans." moved to other Immigration and Naturaliza­ June 21 Washing,on Post, Kissinger That reasoning may not have fully con­ tion Service facilities in New York, Penn­ told Sorvino, "You're fatter than I vinced the lobbyists, but Norquist had not sylvania, and Maryland. The INS had am." Having rea the script, Kissing­ coupde grllce � yet delivered his to political agreed to investigate afterU.S. Rep. Robert er also told him, l"I'm a slimeball in prognostication. He unabashedly declared Menendez (D-N.J.) asked the Justice De­ it, but at least it's not a big part." that "2 million peoplea year die in this coun­ partment in May to look into charges of and 1.2 million of themare Democra ts. abuse. try, • DONALD NlXON, Jr. , nephew That means there's a 400,000 net loss of of the late President Richard Nixon, Democrats every year." has beendetained by Cuban authori­ ties, Associated ! Press reported on June 23. "Don Don," who had worked closely with top narco-fi­ Reich punctures hoax of nancier Robert Vesco, was in Cuba Riot over conditions 'family values' pushers arranging "for a pharmaceutical test there," according to AP. at 'private' prison Addressing the National Baptist Convention I The Conservative Revolution's dream of re­ in San Diego on June 21, Labor Secretary • VIRGINIA fRISONERS, un­ placing the government penal system with Robert Reich took to task proponents of der a directive effective July 1, will dirt-cheap, privately runprisons has already "family values" who use the words to gener­ be required to pay $5 for health care become a nightmare at one such facility. ate political divisiveness rather than solu­ visits, and an additional $2 for any About 300 illegal aliens held at the Esmor tions to real problems. medication dispehsed other than as­ Immigration Detention Center in Elizabeth, "It used to be," he said, "that someone pirin. There are fllwexceptions tothe New Jersey, rioted for nearly six hours on could walk directly from the high school policy. Prison i�ates make approxi­ June 18 to protest their abysmal conditions. graduation ceremony to the factory gate, mately $7 a wee which must also f.' During their rampage, the detainees and then get a decent job that would last cover such pur¢hases as shaving smashed furnitureand broke windows, until a lifetime." Today, however, Reich noted, cream and toothphte, if they have no subdued by nearly 200 policeofficers using "almost all families work, and they are other source of iUpds. pepperspray , Associated Press reported. working harder than ever," yet more and According to the New York Times on more families are "getting nowhere." • THE LAW PlARTNERof Anti­ June 21, inmate unrest was the result of the Reich attacked the "sirens of cynicism" Defamation League national com­ intense austerity imposedby the Esmor Cor­ for using "divide and conquer" tactics, and missioner Murray Janus pled guilty rectional Service, which ran the facility made direct referencesto Republican Presi­ to sexual assault 'on June 19. Rich­ solely for profit.The Times interviewedfor­ dential candidates Pete Wilson and Pat Bu­ mond, Virginia attorneyJames Baber mer employee Carl Frick, the first warden chanan. Frequently, Reich said, the strategy was accused of a�g a woman who of the detention center, who said Esmor of­ of those who invoke the words "family val­ was a potential c1tent to perfonn oral ficials instructed him to lie to immigration ues" is to "ignore the real problems, get sex in lieu of a f�e. Janus, charged officials who were investigating conditions anxious peoplescared and mad at each oth­ with bribing BaJiler's accuser with at the facility. According to the Times, Frick er, and hopethis fear puts enough points on $10,000, pled not guilty. was directed to tell them a doctorhad been the board to win when the buzzer sounds."

EIR July 7, 1995 National 79 Editorial

Fiftyyears too many

The United Nations is presently facing financial bank­ that is the establishment of an international government ruptcy. This, and its manifest bureaucratic inefficien­ with a monopoly of serious �ed force. When I speak cy, are being used by some as a reason to try to shut it of an international govern�nt, I mean one that really down. The truth is that it should be shut down, not governs, not an amiable fac de like the League of Na­ for financial reasons, but because it has been morally tions, or a pretentious shllljDr like the United Nations bankrupt since its inception--or one might say its mis­ under its present constitutio�. An internationalgovern­ conception. ment, if it is to be able to pre/servepeace , must have the A good deal of the responsibility for the founding of only atomic bombs, the onl plant for producing them, the U.N. lie� with Franklin Roosevelt, who originally the only air force, the onlYrlbattle ships, and generally conceived of it as a way of containing the British by whateveris necessary to m.e it irresistible. . . . formalizing the wartime relationship among the Big "The monopoly of armed force is the most neces­ Four: the United States, the United Kingdom, the Sovi­ sary attribute of the intern�tional government, but it et Union, and China. According to his son Elliott, Roo­ will, of course, have to exetcise various governmental sevelt's intention was to use the U.N. to dismantle the functions. It will have to �cide all disputes between British and French empires. different nations, and will �ave to possess the right to He certainly did not envisage the immediate post­ revise treaties. It will have to be bound by its constitu­ waremergence of the Cold War, nor the fiction subse­ tion to intervene by force 4>f arms against any nation quently concocted, that he and Winston Churchill had that refuses to submit to the! arbitration. " forged a "special relationship" between their two na­ Russell would certainlYihave applauded the U.N. 's tions. role today in the former ybgoslavia. In the Balkans, In 1943, Elliott Roosevelt accompanied his father the British have forced thrbugh a policy of using the to the Teheran summit. In his book As He Saw It, Elliott U.N. Blue Helmets to strengthen the Serbian position quotes FOR: "When we've won the war, I will work and prevent the Bosnians fromdefending their nation. with all my might and main to see to it that the United It is by no means coincidental that the Serbians, States is .not wheedled into the position of accepting recipients of Britain's wholehearted support, have car­ any plan that will further France's imperialistic ambi­ ried out a policy of racial urification, modelled upon ·d tions, or that will aid or abet the British Empire in its Hitler's racialist policies. �ese same policies were imperial ambitions." supported by the British oUgarchy prior to World War Franklin Roosevelt made several miscalculations. II. These same policies areJ now carried out more dis­ He overestimated his own health and his ability to de­ creetly under the aegis of IU .N. efforts to reduce the termine the shape of the postwar world. More signifi­ populations of Asia and Africa, to a level deemed ap­ cantly , he apparently did not understand the plans of propriate to their would-be ew overlords. the British circle led by Bertrand Russell to use the In a 1992 interview, pi British Foreign Secretary atomic bomb to force the establishment of a one-world Douglas Hurd told a repo�r for the London Indepen­ government. Russell's vision of a United Nations with dent his views on U.N. �olicies toward the former teeth became the U.N. we know today . colonies. "When bits of Africa collapsed in chaos in On Sept. 1, 1946, Russell wrote a scathing attack the last century ," he said, "¢olonial powers came in and on Roosevelt's conception of the U.N., in the Bulletin there was the scramble fOlt Africa. But that's not on; of the Atomic Scientists. The title of the article was, they'renot going to do that again, and therefore it is "The Atomic Bomb and the Prevention of War." Rus­ only going to be the U.N.'" sell wrote: "It is entirely clear that there is only one way It is time to correct R�osevelt's blunder and dis­ in which great wars can be permanently prevented, and mantle this abominable institution.

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