ilillQuarterly Economic Report

REAL/IT CATCHES UPW/TH THE MYTH- MAKERS

• "One-third of a nation," to use FOR's famous phrase, "is ill-clothed, ill-housed, and ill-fed" again today, as in the 1930s. The good news about the "Reagan recovery" is that the official unemployment rate is way down. The bad news is that the figures are faked, and represent displacement of the workforce into low-pay, low-benefit jobs, or involuntary part-time jobs. It represents personal credit-card debt, jobless workers without unemployment benefits, hungry persons without food stamps, underemployed or unemployed workers seeking food charity, homeless persons, and rapidly growing poverty.

• One year ago, EIR warned that the U.S. physical economy would begin a 15- 25% annual rate of decline sometime in 1986. We argued that such a decline could be slowed, by available political means, but even if slowed, would not be held back beyond the last quarter of the year. In June, the first evidence came in confirming our prediction. In December, again, we were right on the button.

• The political climate in which the administration has been able to peddle the · lies that underpinned the recovery myth has itself changed. November's mid-term elections were a crushing defeat for candidates, especially Republican Party sen­ atatorial candidates, who were identified by the electorate as supporters of the administration's economic policies.

Contents I. Introduction: reality catches up with the myth-makers and their frauds II. Poverty spreads as the 'safety net' collapses III. The collapse of basic industry IV. How defense and space programs drive economic growth V. The world food shortage worsens VI. The forecasting success of the LaRQuche-Riemann method VII. U.S. banking: the mirrors crack Appendix: the 'LaRouche-Riemann method'-by Lyndon H. LaRouche, Jr.

100 pp. Order from: Order your copy today EIR News Service P.O. Box 17390, Price: $250 Washington, D.C. 20041-0390 Yearly subscription: $1,000 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee O n April 24, as the previous issue of Executive Intelligence Review Agriculture: Marcia Merry went into circulation with its cover story on the "World debt and the Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, social-democracy," by Lyndon H. LaRouche, Jr., EIR's Washing­ Paul Goldstein ton, D.C. main office was seized by federal marshals and padlocked Economics: David Goldman European Economics: William Engdahl, in the latest brazen police-state action attempting to silence publica­ Laurent Murawiec Europe: Vivian Freyre Zoakos tions linked to LaRouche. The Washington Post and AP wire service Ibero-America: Robyn Quijano, Dennis Small went so far as to falsely boast that EIR had ceased publication. Law: Edward Spannaus Medicine: John Grauerholz, M.D. Individuals who cherish civil liberties, including many who disagree Middle East: Thierry Lalevee with this review's ideas, were profoundly shaken by these events. Soviet Union and Eastern Europe: Racht!l Douglas, Konstantin George Contributing Editor Webster Tarpley held a press conference Special Projects: Mark Burdman outside the padlocked office and stated to the press: "Three blocks United States: Kathleen Klenetsky from the White House, the Constitution has been trampled on with INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura police-state methods in the heart of Washington by the invisible Bogota: Javier Almario government." Bonn: George Gregory, Rainer Apel Chicago: Paul Greenberg Two weeks earlier, at our Washington office, we released the Copenhagen: Poul Rasmussen new 341-page Special Report, "Project Democracy and the secret Houston: Harley Schlanger Lima: Sara Madueiio government behind the Iran-Contra affair," which, thanks to the Los Angeles: Theadore Andromidas generosity of numerous patriots, has now been distributed to 1,000 Mexico City: Josefina Menendez Milan: Marco Fanini congressional offices, investigators, and government officials in the New Delhi: Susan Maitra nation's capital. Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Despite the April 24 action, EIR will continue to publish, and Rome: Leonardo Servadio, Stefania Sacchi print the views of LaRouche on the unfolding economic crisis. In Stockholm: William Jones United Nations: Douglas DeGroot that regard, I direct readers' attention to the three lead stories on Washington, D.C.: Nicholas F. Benton Wiesbaden: Philip Golub, Garan Haglund pages 4, 40, and 60, defining the imminent possibility of a world financial crash, LaRouche's guidelines for a solution, and the scope

ElR/Executive Intelligence Review (ISSN 0273-6314) is and nature of the forces deployed against him (see also page 64 for published weekly (50 issues) except for the second week ofJuly and last week of December by New Solidarity the Soviet side of that). International Press Service 1612 K St. N.W., Suite 300, Washington, D.C. 20006 (202) 955-5930 In Science and Technology, we present "Science Policy in the E""","" HetMlqllillWrs: Executive Intelligence Review U.S.A.: There is no freedom without the freedom to search for Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal Republic truth," a writing by Mr. LaRouche which was prompted by the of Germany Tel: (06121) 8840. Executive Directors: Anno HeUenbroich, alarms raised by concerned U.S. scientists at the forefront of their Michael Liebig ,,, D.""",rI" EIR, Rosenvaengets Aile 20, 2100 Copenhagen research fields. Those of you acquainted with the millennia-long OE, Tel. (01) 42-15-00 history of our philosophical tendency, will not have any difficulty ,,, Meril:o: EIR, Francisco Dlas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. understanding why the cover picture, a famous rendering of "The J.".. .ub.criptio" .ales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo Death of Socrates," was selected to illustrate the deeper issues in the 160. Tel: (03) 208-7821. present battle. Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-S12S, 6 months-S225 , I year-$396, Single issue-$ \0 Academic library rate: $245 per year Postmaster: Send ail address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 955-5930 TIillContents

Departments Economics OperationJuarez

10 Andean Report 4 Will there be a world 18 Currency reform and Ulloa scandal spreads. financial crash by May IS? replacing the IMF The behavior of the two Bakers at A comparison to two options for 11 Report from Rio the White House has convinced the implementation of "Operation Itamaraty's anti-Funaro intrigues. much of the world that such a Juarez," one with, and one catastrophe is now virtually without, U.S. cooperation. 13 Report from Bonn unavoidable. Concluding EIR's serialization of the Spanish-language Ibero­ The rise of corporatism. 6 Which people does social American Integration: 100 Million democrat Schmidt propose New Jobs by the Year 20001 55 Report from Paris to kill? Defense officials reject Soviet The leading light of German social ploy. democracy goes bananas over the "very high birth rate" among the Feature 57 From New Delhi black, brown, and yellow skinned A healthy initiative. people of the world. 24 World debt and the world social-democracy 72 Editorial 7 Malthusians use TV to The second and final part of An open letter to the President. brainwash Lyndon H. LaRouche, Jr.'s look at the the role of the Socialist 8 Currency Rates International inside the government of the United States, and in the AIDSAlert 9 Mancera bankrupts internal affairs of Central and South America, as a major Mexican economy contributing cause for the 14 New herpes virus found in accelerating collapse of the Africa 12 Hanover Fair reflects international financial system. world depression 16 Incidence of TB increasing among blacks 14 Medicine New herpes virus found in Africa. 58 AIDS threat comes to Asia 15 Agriculture 70 PANIC group files for USDA offers farmers . . . material's return "sympathy. "

71 AIDS: They're all 16 Business Briefs sounding like LaRouche Volume 14 Number 18, May I, 1987

Science & Technology International National

40 LaRouche views 60 Police state methods used capitalism's future after on LaRouche associates­ the 1987 crash again Although few leading bankers The U.S. Constitution is a have any liking for him meaningless piece of stained personally, growing numbers of parchment, if the Justice them concede that his analysis is Department gets away with forcing essentially correct. three publishing companies into bankruptcy, after its sixth police­ 43 Homintern placed under state raid since last October The death of Socrates, one of the most dramatic against companies and political moments in the history of our civilization, when a spotlight in Britain great thinker was judicially murdered solely to stop organizations associated with the search for truth. (The painting, by J. L. David, presidential candidate LaRouche in 45 Philippines rejects dates from the period around the French Revolu­ a dozen cities. tion, which also murdered its great scientists.) Ongpin's IMF deal 63 Linnas deportation: pre­ 32 There is no freedom 46 Palestinian National summit sacrifice without freedom to search Council: Soviets win for truth 64 Soviet diatribes targeted 47 Argentina: Officers In a statement on science policy in LaRouche the U.S. A., LaRouche raises the challenge IMF democracy alarm about the shutdown of Contrary to press reports, the 65 Cap: Don't trust Russian pri vate research crucial to nationalism of rebelling officers, 'openness' defeating AIDS: "There is no and their disgust with Alfonsfn Excerpts from the Defense freedom without freedom to search over his capitulation to the banks Secretary's remarks at the Navy for truth." and trampling on national League of the United States, sovereignty, reflects the thinking Washington, D.C, on April 16. of much of the population.

48 India's new education 67 Eye on Washington policy seen as 'a unique Pentagon report "horseshit": investment' Soviet.

52 Together let us defeat the 68 Congressional Closeup drug trade, the new slavery 70 National News From former Bolivian Army chief of staff Gen. (ret.) Lucio Aiiez's speech to the Schiller Institute.

54 KGB sabotaging French nuclear?

56 Colombia: Liberals accused of 'political AIDS'

58 International Intelligence �TIillEconomics

Will there be a world financial crash by May 15?

by David Goldman and EIR's European Economies Staff

Treasury Secretary Baker, Budget Director James Miller, sury sales, U.S. bond primary dealers holding the bonds and White House Chief of Staff Howard Baker succeeded, in could be forced to unload their paper. This could trigger a a Chinese fire drill April 17, in convincing the world that a real fall in bond markets ." general financial catastrophe would emerge sooner, rather What a "real fall in bond markets" may signify, must be than later, and perhaps as early as the middle of May. judged from the fact that the Treasury 30-year bond, the Budget Director Miller, who called reporters into his benchmark for the market, has lost 11% of its value since the office to warnthat rising interest rates would put the United end of March, the most rapid collapse of U.S. government States into "deep soup," was right; as EIR reported last week, bond prices in history; that is a rough index of the credibility arise of U.S. interest rates by another 2% or so will bankrupt of Washington's non-policy. Since not only U. S. thrift insti­ the entire $1.2 trillion savings system, triggering a chain­ tutions, but the banking system in general, have "securitized" reactionrun against bank deposits, collapse of bond prices, their portfolios extensively during the past five years , a 30- and a general banking crisis. The bankruptcy of the world 50% collapse of the Treasury bond market will eliminate the banking system since Mexico's August 1982 de facto mora­ equity position of the entire dollar-based banking system. torium, and the May 1984 collapse of Continental Illinois, Washington's trade pressure against Japan appears to has been covered by lower interest rates, which permitted the have backfired; the dollar is now falling out of control, de­ entire banking system to earn securities-trading profits, to spite Secretary Baker's belatedefforts to "talk the dollar up. " replace the income on bum loans. Rising rates will take the In an April 20 television appearance, Baker went as far as to thrifts out first, and bring the rest of the system down with it. say that Washington would tolerate higher interest rates, in The events of April 22-23, on which the dollar fell to new order to keep money flowing into the dollar. record lows against the Japanese yen despite an estimated $3- The dollar proceeded to collapse to its lowest levels ever $4 billion worth of currency intervention, andlong-term bond against the Japanese yen regardless, watching Washington's prices fell by almost 3% of their total value, may well have hands-i.e., the trade sanctions against Japan-rather than marked the turning point at which everything went out of its mouth. European central banks intervened in early trading control. with an estimated $3-4 billion in order to prevent a dollar fall Top London bankers are convinced that a general crisis following the abrupt breakdown of talks in Tokyo and Wash­ may emerge by May 15. "Unless the U.S. acts very soon, we ington. U.S. Trade Negotiator Clayton Yeutter and Agricul­ will have a catastrophe," a spokesman for one of London's ture Secretary Lyng leftTokyo April 22 telling reportersthey leading international banks said. He pointed to the midnight were "verydisappointed at the stance taken by the Japanese." May 15 expiration of the U.S. government debt ceiling. "If According to European financial dealers , this sparked re­ Congress fails to approve a new ceiling by then, it reverts newed selling of dollars. News of the Japan-U.S. breakdown automatically to last year's lower ceiling. This hits at the time was reported in London to be behind the 51-point fall in the of the next quarterly Treasury bond auction, which needs to New York stock exchange after close of trading hours in raise $28 billion between May 6 and May 15. Then, if, under London on Wednesday April 22. present pressures, Japan is not a major buyer in those Trea- The stock market's whipsaw on April 21 and 22-up 66

4 Economics EIR May I, 1987 points, then down 51-convince Western European finan­ in the fourth category only, together with Germany's bank­ ciers that a market crash is at hand. "These markets have rupt Bank fUr Gemeinwirtschaft. In the fifth category, Von­ become so volatile in the last days that the financialcommu­ tobel places Banco do Brasil and Banco di Roma, and Bank nity is expecting a major crack to occur," emphasized a of America is found in the sixth category-no good sign, as spokesman for a major West German bank today. London the seventh category is already reserved for banks "gone financial sources say the 51 point fall on Wall Street, follow­ beyond the brink." ing the roller coaster up/down fluctuation of the previous Gold has already reached a four-year high of about $450 week, "is significant not so much for its size, but that it an ounce, and the panic rush out of dollars may push it much indicates a major direction shift. The bull market is over." higher very soon. "There simply is not enough physical gold Europe views the debate between higher interest rates out there to be gotten" in the event of a flood ofpanic money and a stable dollar with undisguised horror. "It is argued that into precious metals, according to one of London's leading unless interest rates go up, the dollar will go down, down, gold analysts. "At present there may be some 50 tons total to down," said a prominent London banker. "But, if the U.S. play with in the whole world. At today' s price, this represents does increase interest rates, this could bring about a slump of only 2.5% of the present capitalization of IBM. If gold goes horrendousdimensio ns. Look at the scale of indebtedness in over $500, it could really go through the roof, because people the U.S. Now, add to that an increase in the cost of debt. will really start stampeding to buy." Companies who have to borrow will go bust. Banks that have high debts tied up in these companies, will also go bust. It's Misestimating the Japanese an open question, if major American corporations and banks Japanese investors' apparent boycott of the U.S. bond can survive this. My estimation is that, what has already market appears to have been leftout of Washington's calcu­ happened in the U. S. farm sector and in the U. S. energy lations. The U.S. Federal Reserve is in a struggle 'almost sector, will multiply into the U . S. industrial heartland, where like a game of chicken' with Japan, theWall Street Journal we will see the next collapse process in the U. S." European edition reported Apri123, confirrnng what EIR has said for months. The Fed is refraining from "nudging U.S. Gold at $800? interest rates higher because it doesn't want to take pressure "Capital is flowing out of the dollar; the question is, off of the Bank of Japan to ease credit, according to U.S. 'where is it going'?" said an officerof a major Swiss bank. officials. " "It's not going into Eurobonds. Not into Japanese stocks or Rather than be bled, the Japanese have decided to throw D-marks. If the German economy even had some good news, their financial weight around. The British government has it would be easier, but it is all bad, so it's not going there. already backed off, tail between legs, froman emerging trade Gold? People are trying to hedge, or get into cash. The only confrontation with Japan. Said one knowledgeable British marketnot beinghit by this volatility is the foreignexchange , source: "The British buckled in, not the Japanese, and sud­ and only because of concerted central bank intervention." denly the Thatcher government has abandoned its confron­ The Swiss banker added, "For six weeks, we have been tationist stance, of threatening to close down Japanese finan­ advising our clients to get out of dollar-denominated stocks cial institutions.operating in London. The British sent a min­ and bonds." Not only the Swiss are blowing the whistle; ister to Tokyo, to threaten and badger the Japanese. The reportedly, E.F. Hutton told clients during the third week of Japanese responded: 'You'd better pack your bags and go. April to "get out of U.S. equities." Hutton is reportedly We don't talk under threats.' Since then, people in the City advising clients to diversify into a portfolio with "35% cash of London have put great pressure on MargaretThatcher, not and 10% gold," because of the extraordinary market uncer­ to do anything to alienate the Japanese, because thereis great tainty. fear of losing Japanese funds, which areholding up the equity On March 18, Swiss Bankers' Association officialHans­ markets." Georg Rudloff warned that the world stood at the brink of The U. S. securities market is far more dependent on history'S worst financial crash. One of his most prominent Japanese funds than London's, and Washington officials may colleagues, Hans Vontobel of the bank bearing his family findthemselves with nothing leftin their pension fundsif the name, now advises investors to put money only into best­ confrontation continues. rated banks, treating others as if already bankrupt. Vontobel However, Japan's specialenvoy , Shintaro Abe, visiting states that "all United States banks are in a bad situation, Washington April 22, did offer Washington a way out: Japan because of their high Latin American debts." The one excep­ will put $30 billion over three years into a special fund for tion he makes is J.P. Morgan Bank, which is given the exclu­ Third World debtor nations. Informed Washington sources sive "A"-rating, together with fiveothers-the three leading translate Japan's offer: If you adopt a sensible plan for the Swiss Banks, Deutsche Bank and National WestminsterBank. Third World debt crisis, we will offer substantial help; if you All the other banks follow, in Vontobel' s rating-system, continue to act irrationally, we can take these markets for in due distance: Chase Manhattan Bank, for example, is rated ourselves.

EIR May 1, 1987 Economics 5 Which people does social democrat Schmidt propose to kill?

by Don Baier

Helmut Schmidt, the former Chancellor of West Germany, it a disorder. has traveled to the Soviet Union, to the United States, and to "At best, it's a floating constellation, floating not only an international forum in Malaysia, during the month of due to floating exchange rates. We have lost monetary sta­ April, playing the role of internationalelder statesman taking bility since the late '60s all over the world. We are about to a farsighted view of world problems-a cool, calm, collected lose the openness of our markets all over the world. crisis-manager, dispensing rational advice. On one subject, "Then there are the power: problems of the globe as a however, Schmidt is anything but rational. He is a fervent whole: maintenance of peace. There is the great question of advocate of malthusian population control, which is to say how to bring about greater paoe of development in 125 de­ that he condones mass murder, as long as he doesn't have to veloping countries, and there is the enormous problem of the call it that. environment, which can never be solved on a national basis. How else is one to interpret Schmidt's remarks in a mid­ "Look at this ozone problem. It is a small problem. It April interview with the Soviet weekly LiteraturnayaGaze­ could be solved by an international treaty of most of the ta, where the leading light of German Social Democracy industrialized countries who would subscribe and adhere to made so much of the "very high birth rates" in the developing such a treaty . But then there comes the carbon dioxide prob­ sector? "There are 4 billion people living in the developing lem in the outer atmosphere, which seems to be insoluble countries. South America, Africa, the entire Arab world, right now. All of us are burning coal, all of us are burning South-, Southwest-, and Southeast Asia-all are character­ petrol, all of us are burning natural gas. Some of us use ized by a very high birth rate ," Schmidt noted. For example, nuclearpowerhouse s, instead, but they have-see Three Mile in a country like Egypt, which is not very big, "the population Island, see Chernobyl-some risks. There is no country in increases annually by 1.2 million," complained Schmidt. He the world so far that has a solution so far of what to do with concluded, "There are already 5 billion people living on this the rest of your nuclear fuel. There is no solution to that right planet and by 2000it will go up to 6 billion. The developing now. But if we go to bum more oil and more coal and if the sector especially is suffering because here the increase in people in the south and in the Sahel zone bum the rest of the population is running ahead of economic progress." wood, then the 'greenhouse effect' will certainly arrive, and On this subject, Schmidt does not speak differently in the very quickly, within the lifetime of the young students in this United States than he does in the Soviet Union. Earlier, on hall. It will become pressing within the next 15 years, and April 2, when Schmidt conducted a public dialogue with may become insurmountable within the next 30 years. So it Henry Kissinger at Georgetown University in Washington, can only be solved in international cooperation. he labeled "the problem of the population explosion" the "Behind all these problems we have the problem of the cause "behind" a whole laundry list of limits-to-growth, "en­ population explosion. When I first attended school in 1925 I vironmentalist" conundrums respecting mankind's use of in­ leamed that we had 2 billion people in the world then. It was creasing amounts of energy. Schmidt betrayed a thinly veiled an unimaginable figure forme . I don't know how many zeros, contempt for the wholly legitimate desire of the peoples of nine zeros behind the two. Nowadays, it's more than 5 bil­ the developing sector for economic growth. lion, only two generations later. It will be 6.2 billion by the Schmidt said in part, .".. A host of developing countries end of the century, which is just 13 years ahead. This is are asking for a new economic order of the world. I ask inevitable. It might be that we change course in a number of myself, 'What do they mean by "new?'" Does there exist an nations, but if we don't we will end up with 8 billion people old order, or a present order? Do we call the present constel­ by the year 2020, or 2025, which means a quadrupling of the lation of the world's economy an 'order?' I would rather call world's population in one cemury, which exacerbates the

6 Economics EIR May 1, 1987 development problems, exacerbates especially the environ­ mental problem. Now, all these problems cannot be solved Mexico by issuing orders or prescriptions. They need a sense of solidarity." Leaving aside for the moment, what Schmidt means by "solidarity," it is clear that he does not really consider eco­ nomic growth, based on scientific and technological devel­ opment, as in any sense a solution to these "problems." And this became quite clear in the critical way he spoke of Japan, the industrial nation which above all, in the post-World War Malthusians use II world, has operated most according to the traditional American System principles of Hamiltonian economy , fo­ 1V to brainwash cusing on increase in labor power, based on massive invest­ ments in energy and infrastructure , and rapid assimilation of by D.E. Pettingell technological and scientific progress in the workforce. "Japan doesn't really have friends in the region," Schmidt announced, adding parenthetically "There's almost nobody Miguel Aleman, president of Mexico's private television in the region that does have friends." But, he added, "The conglomerate Televisa, and part of Henry Kissinger's Aca­ Japanese really don't understand that they don't have friends, pulco clique, was "honored" with the first "Outstanding and now you sense in this country here , and also to some Broadcaster Medal" in Washington, D.C. on April 22 by the degree in Europe, a new anti-Japanese attitude which will malthusian Center for Population Communications-Interna­ make it very difficultin the future. They have not understood tional for "achievements" in brainwashing backward Mexi­ that their economic success is just too big for the rest of the can women into sterilization and other birth control methods world to swallow." through "soap operas." Thus Schmidt is quite prepared to condemn Japan for In 1977, Aleman's Televisa aired the first "family plan­ refusing the path of the "post-industrial society" taken by the ning" soap opera ever produced. Titled "Acompafiame" (Ac­ United States and so much of Western Europe. And in place company Me), during the 9 months that the 180 half-hour of a new credit and monetary system designed to create "new episodes of the soap opera were aired in Mexico, half a Japans" by promoting American System economic expansion million women enrolled in "family planning" clinics while worldwide, as LaRouche proposes, Schmidt offers "solidar­ the contraceptive companies increased their sales three-fold. ity" as the answer to the economic and monetary "disorder" Due largely to "Acompafiame," in less than three years the he identifies. What is this "solidarity?" The closest Schmidt population growth rate of Mexico had dropped from 3.1 % to came to a definition in Washington was this: ." .. If all the 2.7%, the most dramatic drop by any country in recent his­ people and all the nations, including the poorest ones, and tory. The Televisa "experiment" was carried out with the including the richest, of course, if all of them would share total support of the Mexican government.In the mid- 1970s, the burdens . . ." the Club of Rome sold then-President Luis Echeverria the lie That is how Schmidt described the thinking at a meeting that Mexico was overpopulated and needed to adopt an ag­ of some 70 former world leaders , representing 15 nations, gressive demographic policy of population reduction. The headed by Schmidt, which convened in Rome on March 9- policy was consolidated and expanded by the succeeding 10. Subsequently, from April 19-21, another malthusian administrations. The government's goal is to cut population grouping led by Schmidt's "Inter-Action Council" met in growth to 1 % by the year 2000. Kuala Lumpur, Malaysia, for a conference on "the interre­ If this trend is allowed to continue, the consequences may lation between population, environment, and development." be devastating. Thanks to the massive anti-population cam­ (Among those on the Policy Board of this malthusian orga­ paign that the world has been subjected to in the past decades, nization are Peru's Manuel Ulloa, whom his country's courts the "perception" exists that the world is overpopulated, when refused to clear of the published charge that his economic the opposite is in fact the case. If Mexico, or any other policies were responsible for the development of multibil­ developing nation, is to achieve the levels of economic growth lion-dollar narcotics trafficking in Peru.) From April 23 on­ and security needed to employ and satisfy the already existing ward , Schmidt was scheduled for engagements in Los An­ population, the population will have to triple by the beginning geles, Nebraska, Denver, and New York, as part of "Popu­ of the next century. History has demonstrated that any real lation Awareness Week." Perhaps Schmidt will be good economic growth must be accompanied with high rates of enough to tell Americans during that time, exactly which population growth. A clear example is South Korea, where persons he proposes to eliminate in the interest of reducing the economic boom of the 1960s demanded a population world population. density of 433 people per square kilometer. Ibero-America

EIR May 1, 1987 Economics 7 has an average of less than 50 per square kilometer. The fact that Televisa and its malthusian U.S. sponsors are trying to Currency Rates do the opposite , only demonstrates their commitment to regression and death. The Mexican case is not the only place The dollar in deutschemarks wheremass brainwashing through soap operasis taking place. New York late afternoon ftxlnl In recent years the genocidal Population Institute, whose board of directors include such avowed racists as George l.J0 Ball, Sol Linowitz, Maurice Strong, and Lord Caradon, asked Televisa to make its soap opera "technology" available to 2.80 other "overpopulated" nations such as Kenya, Nigeria, Egypt, 1.90 Bangladesh, and India. Paid by the Agency for International Development, Televisa sent a team of "experts" to those � ..... 1.10 -� 1'- - countries to train nationals in the brainwashing technique. � ..

The firstbirth control soap operas will be aired in Kenya 1.70

and India this summer. The mastermind of the birth control 3/3 3/10 3/17 3/24 3/31 4/7 4/14 4/21 brainwashing technique is Jose Sabido, Televisa's vice pres­ ident and adviser to the Mexican government. Sabido, who The dollar in yen New York late afternoon fixing works hand in hand with the Center for Population commu­ nications director David Poindexter, heads up teams of so­ I. ciologists, psychiatrists, demographers, and communica­ tions experts who carry out detailed studies and profiles of 1711 the lower to middle class housewives, the soap operas' main

target. The gimmick is to present "life" as "real" as possible 160 to the woman, so she can emotionally and psychologically

identify with the melodrama being developed. The message ISO -- "" is always that children are an economic and social burden to -- the family, the community, and the nation. Many of the 1411 """"" targeted women are illiterate, so television is the best and 3/3 3/10 3/17 3/24 3/31 417 4/14 4/21 most effective "means" to get through to their minds, a Center The British pound in dollars for Population Communications spokesman explained. N... York lal. aft.rnoon IixinR In the case of Mexico, other interested partieswere "con­

sulted" and their views taken into consideration such as the 1.60 I - � the Mexican Catholic Church and the Communist Party - (PSUM). A "consensus" was reached with the Mexican I. SO Church, according to the Center spokesman , accepting the 1.40 need for lessening the number of people but through "natural means." 1.30 "Acompaiiame" has a scene of a woman going to Church for confession where the following exchange takes place: 1.20 "Father, my children believe that I'm irresponsible because 3/3 3/10 3/17 3/24 3/31 4/7 4/14 4121 I have had too many children." "They are right," the father replies. "But Father, my children are God's gifts," she adds. The dollar in Swiss francs "But you have asked for them," the priest concluded. Re­ N.,. York Ial•• ft.rnoon IIxinR gardless of priests' individual postures on the subject, the 1.80 Catholic Church's absolute condemnation of malthusianism and defense of life has been made clear in 2,000 years of 1.70 Christianculture. More recently, Pope John Paul II, speaking in Chile on April 5, quoted Pope Paul VI's famous speech in 1.60 1970 before the Food andAgriculture Organization in Rome, � where he said: "It's clear that because of economic difficul­ I.SOV ...... ties, which we are facing, there is a strong temptation to utilize authority in order to diminish the number of eaters. 1M Instead, we have to multiply the bread, and not to diminish 313 3110 3117 3/24 3/31 417 4/14 4/21 the eaters."

8 Economics EIR May 1, 1987 Others say the problems of these banks go back to the "forced mergers" decreed by the Banco de Mexico during the first three years of the present government, when they ab­ sorbed huge debts of regional banks that have since vanished. Mancera bankrupts Added to this was the credit squeeze decreed by Banco de Mexico since October 1985, which practically strangled the Mexican banking deposit banks. According to an analysis ofthe Inverlat brokerage house, the above-named banks' troubles are because the government by Carlos Cota has "favored financial above productive investment." Pre­ liminary data from Banco de Mexico for 1986, show that Not long ago, the Mexican financial daily El Financiero with the tight credit policy there was a repatriation of private leaked the existence of a new financialinstitution in Mexico, capitlilof some $1.568 billion, and that $900million returned about which the government had maintained "discretion," in in the first quarter of 1987. Yet, this capital went into spec­ order to avoid "misinterpretations." According to El Finan­ ulative financial investment, such as buying government bonds ciero, officials of the Finance Ministry and the nationalized traded on the stock exchange (Treasury Certificates, petro­ banks said that the new National Prevention Fund (Fonapre) bonds, etc.). Hence, repatriation and "conversion of debt has been operating since the start of this year and that its into capital," have provoked an "oversupply of money, while purposeis to "prevent" financial problems for banks with low the demand and capture of it by the banking system" have profits and a high growthof bad loans. continued to plummet. The figures from the Mexican Bank­ Technical language aside, Fonapre's function-under the ing Association and Banco de Mexico indicate that in Decem­ Finance Ministry, the Banco de Mexico and the National ber 1985 the commercial banks were running 82.04% of the Banking and Securities Commission-is to try to prevent a economy; investment and development banks 7.65%, and massive bankruptcy of banks, which have been reduced to the money market (brokerage houses), 10.21%. By Decem­ insolvency by the financial policy of Banco de Mexico (cen­ ber 1986, the proportions were lowered to 72.45% for the tral bank) director Miguel Mancera. According to National first-named, and 8.03% for the second, while the money Banking Commission figures, by December 1986 the non­ market climbed to 16.83%. By March 31, 1987, the official performing loan share of the total debt portfolio of Banco preliminary figures indicate a new lowering for commercial Mercantil de Mexico was 7.64%; that of Crectito Mexicano, banking and investment banking, and an increase for the 5.74%; Banpais, 5.65%; Banca Confia, 4.60%; Central Hi­ money markets, which grew to 19.52%. potecario, 3.76%; Banca Cremi, 3.42%. From the outset of this government, Banco de Mexico For their part, the "octupuses" (from before the banking director Miguel Mancera's policy has been to give the na­ nationalization of 1982), Banamex and Bancomer, only had tionalized banks back to the ex-bankers, or create new insti­ bad debts of 0.70 and 0.40% respectively, and recorded tutions for reprivatization in the future . Given the windy annual profits of 105 and 107 billion pesos respectively, protests from the ex-bankers about the creation of Fonapre, having managed between them, 69 .2% of the profits of the it seems that Mancera opposed its creation, since its function entire Mexican banking system. Banks such as Mercantil de "would be to financially subsidize" the "new state compa­ Mexico recorded profits of barely 92.9 million pesos in the nies," which are the "nationalized banks," according to the same period; Banpis, 9.9 million; Bancrese, 80. 1 million; ex-bankers . In reality, the creation of Fonapre is a measure Creectito Mexicano, 174.4; and Somex, which has been a taken by those who seeing the chain-reaction collapse of the state bank since before the nationalization, had only 2.5 entire financialstrategy followed by the Miguel de al Madrid million pesos in profits . government, already coming down the pike. The Banco de Officials of the nationalized banks have stated that the Mexico director wants to bankrupt the nationalized banks, profits of these banks continued to fall in the first months of unleashing financial speCUlation to leave Banamex and Ban­ 1987 due to the drop in capture of savings. comer as the two central commercial banks. There are various official explanations for how this situ­ Yet, as the economists at ITAM (a Mancera coven) state, ation came about, all valid. Banamex and Bancomer officials the bullish fever of the stock market is going to cool fast, say that the banks with low profits arethose that "only attract­ given its "great vulnerability due to lack of prospects in the ed cheap resources, such as savings deposits and checking real economy which could sustain it." These economists want accounts, but did not participate in other financial or credit the government to invent more and more securities for the activities, where the higher priced resources are attract­ money market to prop it up. ITAM's analysis starts with the ed ....It is a matter of institutional tradition." I.e, the banks question, "What next?" Various governmentofficials already with problems did not have much of a role in the speculative know that what is next, is the crumbling of the house of cards game. built by Miguel Mancera .

EIR May 1, 1987 Economics 9 Andean Report by Val erie Rush

Ulloa scandal spreads mittee which decided to whom the The dirty dealings of the "Man fromthe Bahamas" continue to loans would be granted-and in what surface; someare charging he's alreadyabandoned Peru. quantities. Thus, not only did the pri­ vate banks receive a generous bailout from state funds, but the private min­ ing companies also received virtually free subsidization by the state. T he furor over the Bancoper/Ber­ share in 1980 to 344 in 1982. Through two separate decrees tello case (see EIR, April 24 , 1987) Why Wiese got the lion's share of which altered both state banking and had barely begun to subside when yet the FOCOMI funds is perhaps ex­ mining legislation, Ulloa and Kuc­ another scandal broke inside Peru plained by the fact that Industry Min­ zynski sought to cover themselves with aroundformer Finance Minister Man­ ister Gonzalo de la Puente was-and the offici3J. determination that 1) the uel Ulloa, who decided April 16 that remainsto this day-a director of that Banco Minero was not required to de­ he had an urgent meeting of the gen­ bank. Mines Minister Kuczynski was mand guarantees for its loans to the ocide lobby's Inter-Action Council to rewardedfor his partin the affair with mining companies, and that 2) neither attend-in Malaysia! One Peruvian a highly lucrative directorship with thedirectorship nor the special admin­ congressman has already warned that Wiese as well. In fact, despite his de­ istrative committee of the Banco Mi­ some of the principals under investi­ parturefrom Peru to work as vice pres­ nero would bear any responsibility for gation in the Bertello case appear to ident of First Boston International, losses incurred by the bank through be "abandoning the country. " Pedro-Pablo Kuczynski earned $3 the FOCOMI loans. The newest wrinkle to appear on million as an absentee directorat Wiese Kuczynski, himself a fugitive from Ulloa's public brow comes from the Bank through February 1986. Peruvian justice stemming from 1986 FOCOMIscandal . FOCOMI (Fundfor The extent of Wiese's gratitude to charges that he defrauded the state in Mining Consolidation) was a $160 Ulloa has not yet been determined. favor of the oil multis, has issued no million credit line established by Ul­ A further scandalous aspect of the comment yet on these latest revela­ loa and his colleague, then Mines and FOCOMI case is that the interest tions. Energy Minister Pedro-Pablo Kuc­ charged the mining companies on the Ulloa hasnot been present in Peru zynski, at the state-owned Banco Mi­ Banco Minero/FOCOMI loans was so to respond to the FOCOMI revela­ nero. FOCOMI was created for the low that the central reserve bank was tions, but we presume he will stand by alleged purpose of helping to com­ forced to lend $10 million to the Ban­ the same "explanation" he gave re­ plete urgent investment projects by co Minero to pay the financialcosts of garding the multi-million dollar state mining companies afflicted with the its $160 million loan from the state. bailout he orchestrated for the bank­ 1981 collapse of minerals prices on Despite a stipulation that the mining rupt Bertellobank, namely that he was, the international market. companies had to set aside 5% of their "just like the other Latin American Although FOCOMI funds were exportearnings to repay the FOCOMI countries, trying to avoid the bank­ originally prohibited from being used loans, virtuallynone of the money has ruptcyof the banking institutions." topay creditors of the mining compa­ been recovered. The Bamco Minero is today de- nies, Ulloa and Kuczynski called a As if that were not bad enough, it . manding that the state assume the un­ "council of ministers" with a third turns out that Kuczynski and Ulloa paid FOCOMI debt. Banco Minero conspirator-Industry and Tourism created a special committee at the president LlJis Brousset says that the Minister Gonzalo de la Puente-to lift BancoMinero to substitute for the bank fundamental.misconception behind the theprohibit ion. directors in administering the FO­ creationof FOCOMI was its "extreme : At least $80 million of the FO­ COMI funds. Included on that com­ flexibility. " Brousset also notes that COMI funds went toWiese Bank, one mittee were: Moises Heresi, president loss of the FOCOMI funds stemmed of the mining companies' most impor­ of the bank at that time and currently from the state's inability to directly tant creditors. Wiese Bank was in des­ a fugitive from Peruvian law; and Al­ supervise them, due to the Interna­ perate shape as a result of the world fonso Brazzini Diaz Ufano and Alvaro tional Monetary Fund's stipulation that collapse of mineral prices; its stock Chirino Stein, both linked to several such a role by the state would have had plummeted to one-tenth its value of the major mining companies in­ violated the conditions of its stand-by in just two years, from3, 500soles per volved in the scam. It was this com- loan with the Fund.

10 Economics EIR May 1, 1987 Report from Rio by Silvia Palacios

Itamaraty's anti-Funaro intrigues Sarney, outside the Government Pal­ Will the Brazilian Foreign Ministry once again sabotage ace; this started the first wave of ru­ national sovereignty and continental integration? mors about Funaro's imminent de­ mise. Ricupero's Itamaraty faction has centered its efforts on putting an inter­ national financiers'puppet into the Fi­ nance Ministry, who will tum the A faction of the Brazilian Foreign try"; this explains why, at the timid moratorium into a cadaver or a mere Ministry, Itamaraty, represented by meeting of the eight Ibero-American bargaining chip with the banks. One Ambassador Rubens Ricupero, an in­ foreign ministers from the Contadora of their favorites is Brazil's Ambas­ ternationalaffairs adviser to President Group and its Support Group, held in sador to the United States, banker Jose Sarney, has dreamed up every Barioloche, Argentina, the Itamaraty Marcilio Marques Moreira, a Uniban­ step of the campaign to dump Finance apparat refused to approve holding a co shareholder and partner of David Minister Dilson Funaro and replace continental meeting, as proposed by Rockefeller, who is very stuck on the him with an ally of the creditorbanks. Mexico and Peru. globalist financial reorganization While President Sarney and his fi­ For these reasons, the Brazilian schemes of the Trilateral Commis­ nance minister are vigorously defend­ press,which is hostile to the debt mor­ sion. On March 21 he attended a Tri­ ing the national sovereignty and self­ atorium Brazil declared on Feb. 20, lateral Commission meeting in Cali­ interest of "Brazilian grandeur," re­ has been playing up Ricupero. His fornia, alongside a group of bankers sisting enormous international pres­ name was raised to become presiden­ and the Peruvian writer, Mario Vargas sures, Ricupero and his band are car­ tial chief of staff, an important cabinet Llosa. Helping the ambassador is vet­ rying out guerrilla warfare against position, before the current chief, eran Itarnaraty diplomat Walter Mor­ them. Marcos Maciel, stepped down. The eira Sales, the top shareholder of Un­ For his passion for Marxism and leader of the Liberal Front Party (PFL) ibanco who has been the connection for being one of Itamaraty's experts in the House of Deputies, the obscure between the Brazilian oligarchy and on U.S. politics, Ricupero could be Jose Lourenzo, publicly asked for Ri­ the U.S. Eastern Establishment for considered Brazil's "Arbatov"; he is cupero to be nominated; he also asked decades. the promoter of the trade and cultural for Funaro's head and for Brazil's In the domestic factional brawl, openings to the Soviet Union, a task reentry into the International Mone­ this crowd has already been de­ for which he can count on such allies tary Fund. nounced. On April 21 an influential as Helio Jaguaribe, the only Brazilian Interviewed in the magazine Veja columnist of Jornai do Brasil revealed in the Club of Rome, and Candido on April 8, while he was attacking that in the remote possibility Funaro Mendez. Funaro and demanding his replace­ were replaced, "under no hypothesis" The latter, a "practicing Catholic" ment by a minister "with good con­ should he be replaced by a banker­ like Ricupero (but pretty distant from tacts with the bankers," he lauded starting "with Ambassador Marcilio the Vatican's formulations on the Gorbachov and Albania as represent- Marques." debt), organized a symposium last year .. ing "civilized Marxism." Yet, the Ricupero faction contin­ to which he invited jurists from the Before the U.S. State Depart­ ues to have fullpowers, and is pledged Academy of Sciences of the U.S.S.R., ment, through U. S. Information to keeping the moratorium from being to hear suggestions for the new Con­ Agency director Charles Wick and the extended into a continent-wide politi­ stitution being discussed for Brazil. "0 Globo" TV channel which belongs cal action. It remains to be seen Besides fomenting the pro-Soviet to tycoon Roberto Marinho, launched whether the intrigues will culminate policy, Ricupero is working to boy­ their international campaign to deni­ like the old story of the "ABC" inte­ cott serious efforts at integrating the grate Funaro, Ricupero had already gration accord among Argentina, Bra­ lbero-American countries that could moved his domestic pawns. It was he, zil, and Chile, signed by Brazil's Ge­ lead to creation of a New International together with businessman Matias tulio Vargas and Argentina's Juan Economic Order. He has systemati­ Machline, who owns Sharp of Brazil, Domingo Per6n during the decade of cally stated that on the foreign debt who organized the businessmen's the 195Os. Itamaraty boycotted it, thus question, "the problem is for each meeting in Sao Paulo with President causing its failure.

ElK May 1, 1987 Economics 11 exporters, through the end of 1986. But the "mini-boom" of 1985-86 in this vital area has collapsed. Hanover Fair reflects Austerity is the buzz word world depression The most telling reflection of economic pessimism came in the opening remarks of the president of the West German by William Engdahl Employers Federation, Dr. Klaus Murmann. Murmann ex­ pressed concern over "radical changes taking place in inter­ national trading patterns. AIQlost all countries have been The Hanover Industrial Fair, held April 1-8 in this northern affected by the dramatic fall in the dollar ....The dollar German city, is one of the most remarkable events in the area, which extends far beyond the U.S.A., accounts for world for anyone concerned with the latest research and ap­ approximately 30% of world exports and 35% of world im­ plication of industrial production technology . Begun imme­ ports. " diately after the war, it has grown to become the world's So far, he is correct. But this important European indus­ largest and most important trade fair. Buyers and sellers of trialist, speaking before the world's most important exhibit technology fromall over the globe gather to show their wares, of industrial technology-the path out of any industrial and talk. depression-could only think. in terms of depression, not This year, more than 6,000 companies from throughout how to get out of it. Western Europe, North America, and select developing In sharp contrast to similat keynotes in previous years, countriespresented exhibits of their newest and most impres­ which stressed development Of the frontiers of technology sive technological production tools and machinery. for the automated "factory of the future," Murmann spent the First, some positive observations: Only last year, com­ greater part of his remarks caJIing for three desperate eco­ mercial development of a six-axis industrial robot in con­ nomic austerity measures. He called for "top priority to ... junction with a laser driver was a major new advance dis­ balancing the budget and cuttihg public expenditures." For played by two German firms.This year, six -axis robotics was the Western European econorqy, this would mean inducing evident to a degree that it has become accepted "state of the severe depression by slashing : vital state support for steel, art." The British company now owned by Westinghouse, coal, shipbuilding, and many other strategic sectors of the Puma,displayed a "mini-robot," marketed through Westing­ fragile economy. He then turn¢d to the vital area of medical house's Unimation subsidiary. The PUMA 260 is a six-axis care. At a time when the exploding AIDS epidemic is de­ unit with a payload capable of just less than a kilogram and a manding exponential expansidn of medical and biological reach of 0.4 meters. The machine has been developed for expenditure, Murmann called fura structural reform of West specific application in the automated creation of computer Germany's still functioning medical insurance system in or­ chips. In new generation microchips, air purity control is one der to "prevent social spending from exceeding all limits." of the most persistent problems. Human operators, even with Ironically, two minutes later, Murmann cited medical tech­ high sanitation garb, masks and such, achieve an air purity nology as one of the areas where Europe "leads the world." level of "Class 1000." Normal robots typically achieve Class And finally, he foolishly attacked the high wage-cost of Eu­ 100.Puma's new unit claims air purity clean-room specifi­ ropean industry. cation to Class 10. All of this made the impact of the feature exhibiit of this The world leader in overall robotics for several years has year's Hanover Fair a bit anti-climactic. The theme, chosen been the Swedish company, ASEA. This year, too, they each year to illustrate the most important new frontier in featured a number of new, larger units. Other firms had industrial technology development, was appropriately "Sys­ interesting combinations of new robotics as well . tems Integration-the Key to theFactory of the Future." This Something was clearly absent, however. The explosive was a special exhibit on production automation under direc­ enthusiasm and optimistic technology-push of the previous tion of Prof. Hans-Jiirgen Warnecke of the West German several yearswas gone. One leading robotics spokesman told Frauenhofer Institute for Production Technology and Auto­ the author, "The bottom has fallen out of the world robotics mation, located outside the industrial city of Stuttgart. It market in the last few months. The worst hit came with GM demonstrated a DEC/Vax-compatible system for sequential in the States announcing cancellation of plans to add 1,000 multiple-product assembly lines for achieving optimal pro­ robots to its production facilities." Alternativemarkets under duction control, planning, and monitoring. It contained nu­ present conditions of dollar uncertainty, simply are not evi­ merous features which would be standard industrial technol­ dent. Much of the boom was based on the promise of ex­ ogy in an expanding world market. panding U. S. markets, under the rhetoric of the Reagan "re­ But so long as industrial spokesmen who should know covery," combined with the extraordinarily favorable terms better call for industrial austerity, there will be no expanding of trade for West European exporters, especially German market. Depression will only deepen.

12 Economics EIR May 1, 1987 Report from Bonn by Rainer Apel

The rise of corporatism formerly powerful economic empire The corporatists here fa vor loosening economic ties to the West, of the labor movement hangs. Neue and an economic axis with Moscow. Heimat, the labor unions' construc­ tion and public housing giant, now burdened with a total debt of 17 billion deutschemarks, is run by the creditor banks under a tight trusteeship. Just a In West Gennany, corporatism made grams. At the same time, the corpo­ few days before Easter, the banks a step forward over the Easter Week­ ratist regime promoted extended eco­ agreed to delay the Neue Heimat end. One of the first news items was nomic cooperation with Moscow as bankruptcy by another year until the the collapse of the Maximilianshiitte "politically reasonable." end of 1988. Was labor's price for that Steel Plant-the only big facility in Queried on his anti-strike state­ favor the decision to stop the metal that industry in South Gennany-with ment by journalists, Schiller said his strike? 4,500 jobs. The company had been ideas were "becoming very popular It goes. without saying that the known to be in deep trouble before. among the labor unions now." banks also played a decisive role in The reasons management gave for fil­ As if to illustrate this, the metal­ the Maximilianshiitte affair. ing Chapter 11 bankruptcy were very workers union signed a wage agree­ Here, at the end of the metal strike peculiar, however. They spoke of a ment thesame day, late Tuesday night, before it began, and with the "look to "preemptive bankruptcy , saving most April 21. A meagre increase of 3.5% the East," the corporatistwheel comes jobs, to avoid a full bankruptcy ex­ for 1987, another 2.0% in 1988, and fullcircle. All of the big German banks pected later this year." This statement another 2.5% in 1989 was signed. New will participate in an East-West semi­ was also supported by the shop-stew­ wage talks are not planned before the nar on the financing of joint ventures, ards. spring of 1990. Given the inflation to take place in Moscow at the end of The action came at a time that the rate, this contract amounts to a wage May. And the same day the metal­ metalworkers union was close to a na­ freeze over the three-year period. workers dumped their strike, Minister tional strike. What makes the agreement even of Technology and Research Heinz The riddle was solved on Easter worse, is the fact that it also sets a Riesenhuber signed a long-tenn co­ Sunday , when one of the country's timetable for a further reduction of operation agreement in Moscow on most high-profile corporatists, fonner weekly working-hours from 38.5 now "industrial application of nuclear Minister of Economics Karl Schiller, to 37 hours by spring 1989. For 3.8 technology." As Riesenhuber said: warned in an interview with the mass­ million workers in the metal industry, "This involves the modernization of tabloidBild am Sonntag: "A strike now this means less work, and therefore 78 Soviet nuclear reactors, meaning would bedangerous." A national strike less income. Why did a labor union contracts in the range of several bil­ in the metal industry would, said that had just spoken of a big strike, lions. This also securesjobs." Schiller, push the country into "real sign such a contract? Gennan corporatism wants deals danger, throwing an already weak­ The answer is to be found in the with Gorbachov, who has already re­ ened recovery off-balance complete­ Gennan banks, the core of corpora­ sponded appropriately, by having his ly." He recommended that metal­ tism in the country. The banks en­ spokesmen term the visit of German workers and management sit down in couraged industry to adapt itself to the State President Richard von Weiz­ a round-table and solve the problems loss of export markets, especially in sacker (May 17-22) "an event that "on a reasonable basis." Ibero-America, and to reduce invest­ bears political importance far beyond This "round-table reason" was ments in highly indebted countries of the merely bilateral relations between originally invented by Schiller, a So­ the Western Hemisphere generally. Bonn and Moscow." Weizsacker's trip cial Democrat, in 1966, when he was The banks have been telling industri­ is to create a political climate favor­ cabinet minister in the grand coalition alists to seek "j oint projects" with the able to bankers' meetings in Moscow government. This historic period was Soviet Union to secure future reve­ a week later. There is a risk in the characterized by wage freezes and fis­ nues. game, however: Gorbachov won't play cal austerity. Even a special "conjunc­ The banks also have a handle on by the rules, and this will discredit the tural tax" was invented to fund costly the labor unions, because they hold plot sooner than many in the corpora­ job creation and adjustment pro- the thin thread by which the bankrupt, tist cabal may wish.

EIR May 1, 1987 Economics 13 Medicine by John Grauerholz, M.D.

New herpes virus found in Africa attacks B-cells. Some of these herpes The geographical separation o/ the two cases would suggest that viruses, particularly herpes simplex, the new T-lymphotrophic virus is already widespread in Africa. are "incredibly variable." This virologist thought it "quite conceivable" that viruses other than HIV could cause AIDS-like syn­ dromes of T-cell malfunction . When Wbile politicians and public health cated the new virus in T-cell cultures asked the question, "Why are we officials continue to fiddle, the AIDS and that "it shows exactly the same seeing within a short period of time conflagration is spreading in new, and cytopathic effects as the AIDS virus," the appearance of a series of new vi­ unexpected, ways which more and and is definitely different from the B­ ruses attacking the immune system­ more confirm the original 1974 pre­ cell trophicherpes virus discovered by the lentiviruses HIV, HIV2 in hu­ dictions of economist Lyndon H. Gallo et al . last year. mans, the new fe line AIDS virus, and LaRouche and his Biological Holo­ Becker stressed the following the new herpes viruses ," he volun­ caust Task Force. According to an ar­ points: I) Assuming that the two iso­ teeredthe idea that "something else is ticle published in the Sunday Express latedviruses are the same, as appears happening, some environmental ele­ of London, a new herpes viruscapable to be the case, the geographical sep­ ment, which is causing these viruses, of infecting T -cells could be involved aration of the twocases would suggest which probably were dormant before , in many AIDS cases as a direct cause that the new virus is already wide­ to become active. It could be anything or co-factor. spread in Afr ica. 2) Since the new vi­ from some pollution of the environ­ In a conversation with Prof. Wal­ rusappears to be immunosuppressing, ment, to a change in background ra­ ter Becker, of the Stellenbosch Uni­ it may already be involved at least as diation, or even psychosomatic fac­ versity in Cape Town, South Africa, a co-factor in many AIDS cases. 3) tors. Who knows?" Asked for a known about the new Human T-Lympho­ We should expect that the new example of activation of dormant vi­ trophic Herpes Virus (HTLHV) caus­ HTLHV virus is more infectious than rus, he cited the case of certain chick­ ing AIDS-like disease, whose discov­ the ordinary AIDS virus HIV, espe­ en retroviruses which arenormally en­ ery was attributed to Becker, he con­ cially by casual contact including sa­ dogenous (incorporated in normal cell firmedthe report, and added: liva. 4) We should take the possibility genetic material), but whose emerg­ The new herpes virus was found of rapid spread of this new virus very ence in theform of infective and rep­ in two patients showing "otherwise seriously. 5) If HTLHV is involved in licating virus can be triggered by poi­ unexplainable illnesses." Both were many AIDS cases, then this may open sons or other extreme stress. whites, one from Cape Town and the up new possibilities for treatment. This is yet another confirmationof other a Norwegian living for many The most immediate task, Becker the prediction by LaRouche's Biolog­ years in Central Africa, an earlier stressed, is to get laboratory probes ical Holocaust Task Force, that the memberof U.N. peacekeeping forces. out to test for prevalence of the new conditions of impoverishment en­ The former showed no sign of HIV virus. U.S. AIDS researcher Robert forcedin Africa, and other developing infection; the latter had apparently Gallo, he said, is keeping the probes sector areas , would not only lead to picked up HIV from his African wife. for his B-trophic herpes virus secret. resurgenceof the classic epidemic dis­ The Cape Town man had hairy-cell Becker stressed the need to findout if eases but would result in the evolution leukemia which mysteriously did not HTLHV is involved in AIDS cases. of new diseases in large immunosup­ respond to treatment, leading to sus­ In a discussion with a British vi­ pressed populations. The current epi­ picion of AIDS . No signs ofHIV were rologist who works in Lyon , France, demic of AIDS and chronic mononu­ found; but instead a herpes virus was this scientist said he had not heard of cleosis-like disease, associated with found in electron micrographs of thenew virus yet, but "thereis nothing chronic infection by some strains of lymphoid tissues. The Norwegianwas inconceivable about the idea of a T­ herpes viruses, which now appears found to be infected with HIV, but cell trophic herpes virus, just as Gallo widespread in the United States also also a herpes virus was found, again found one that infects B-cells. Most underlines the prediction that such associated with T �ells, which Becker herpes viruses are selective, tending pestilences; like the cholera pandem­ thinks caused his illness. more towardB- cells than T -cells. So, ics of the last century, �ould not re­ Becker reported that he had repli- for example, the Epstein-Barr virus main confined to their area of origin.

14 Economics ElK May I, 1987 Agriculture by Marcia Meny

USDA otTers farmers . . . 'sympathy' Furthermore, in the pipeline are Losing your fa rm? What you need is "counseling," says the requests for $40 million from fanners Department of Agriculture. to the FHA-and this does not include the estimated $1 3 million needed in the Chapter 12 reorganization plans being worked up for bankruptcy pro­ ceedings approval, by the fanners who have filed since last November. In terms of the other type of loan ThingS have only changed for the others) in a way to restore fannoper­ for the fanner, the local commercial worse in recent weeks for the U. S . ations. bank loan, the Catch 22 scenario is fann sector: More than 1,000 fanns a Thousands of fanners have filed that money is not available because week are going under. But in Wash­ for the new "Chapter 12" bankruptcy the Federal Deposit Insurance Corp. ington, D.C., policymakers only know status, supposedly designed by Con­ is leaning on the banks not to make how to talk . gress (passed last year) to permit such loans. The FDIC will only ap­ There is a new twist of the knife fanners to maintain operations and prove such a loan if the bank shows from the U.S. Department of Agricul­ stretch out their debts over 30 years. acceptable liquidity levels-which ture. They now stress "assistance," Other fanners, who are already fann­ fannbanks are not now doing because "dignity," and "sympathy." In a re­ ing as serfs for the mortgage holder or of the general depression. cent Agriculture Information Bulletin trustee of their fann, are filing for For those who do not live in a fann (No. 508, March 1987), titled "Assis­ Chapter 7, and angling to get some area, here's what this looks like: tance to Displaced Fanners," the government crop price-deficiency Thousands of fanners are not going USDA recommends that fanners get payment that will keep them in oper­ to produce any crop-whatever stage counseling as they lose their fanns, ating cash to continue fanning. Some they are in in the fight to remain fann­ and that they look for a "financial fannershave been forced by the crazy ing. No cash flow is going into the bridge" so they can eat while they look USDA system of deficiency and other local community for supplies, ser­ for non-fannjo bs. payments, to resort to virtual charla­ vices, and fann inputs. Debt of local The rhetoric is deadly: "Many tan procedures, merely to continue suppliers who can still take it is in­ fanners, unable to cope with heavy producing food. creasing. debts, have had to give up fanning in But these measures-by govern­ Even the USDA estimates that 17% the past few years. More are expected ment design, aren't working. On the of national corn . acreage will not be to leave agriculture over the next few Chapter 12 filing, there is a Catch 22. planted. At least 10% of national soy­ years. Evolving federal, state and lo­ Congress, on the one hand, says, it bean acreage will not be planted. This cal government programs, some de­ wants to help with a Chapter 12 reor­ will be exceeded in many regions, for scribed in this paper, are helping these ganization, but it makes no arrange­ example, the state of Louisiana, where fanners and their families salvage as ments for a source of credit following one observer said, "Acres and acres much equity and dignity as they can a reorganization approval. will not have a plough put in the field and find other ways to make a living." There are two possible sources of because the fanners cannot afford it." This is cynical, fantasy talk about credit, neither one of which is work­ In one small, northern Louisiana what is really happening in our nation­ ing. On the one hand, the federal gov­ cotnmunity, two drug stores have al fann sector-which is the world's ernment, through the Fanners Home closed, not because people have largest food supplier. When it goes, Admininstration, can authorize a stopped buying due to the drug store we go. fanner'sloans, but the FmHA doesn't mark-up and sales rate on sundries, In reality, fanners have been re­ have any money. For example, in one but because people have stopped buy­ sorting to scrambling for any means to southern state, there are applications ing the medicines and prescription continue to operate. There has been approved for $15 million in directFHA drugs they need, because of their low no action · taken to freeze debt, and fann loans. But there is only $7 mil­ earnedincome. In thesame area, three shore up the national agriculture credit lion available, and this will not be ob­ furniture stores and two radio stations network (Fann Credit System, banks, tainable until the fourth quarter, after have gone out of business in the last Fanners Home Administration, and the planting year ! 30 days.

EIR May 1, 1987 Economics 15 Business Briefs

Sp eculation tracting TB and dying of lung diseases at council of ministers, the Indian government "disturbingly" higher rates than whites. called the Swedish claims "false , baseless, Stock market boom Among some age groups, the black rate is 9 and mischievous." times higher than among whites, and the prelude to crash death rate 16 times higher. This disparity "is in large part a reflection of the continuing An article in the Financial Times of April and perhaps widening difference in socio­ InternationalCredit 18 considers the "perplexing lack of corre­ economic status .... This disparity ... lation between the performance of stock­ calls for an intensified effort to close this Lending to Asian gap and thereby prevent unnecessary dis­ markets and the performance of the world's nations low in leading economies." ease and death," O'Brien said. 1986 The article notes an "uncoupling of In 1985, the incidence rate among blacks bourses from economic reality," an uncou­ was 26. 7 per 100,000; among whites, 5.7 According to the Asian Development Bank pling that EIR founder Lyndon H. La­ per100, 000. Cases among blacks were con­ reportreleased on April 20 , lending to Asian Rouche has been calling attention to for a centrated in the southeast, the eastern sea­ nations was "less than anticipated. " Al­ number of years. While the real economy boa;:J, and California. Cases among whites though the value of loans approved by the stagnates, the paper markets are booming. are most common among the elderly. bank rose 4.9%, to $1.4 billion, the amount The Financial Times quotes the latest actually disbursed fell 1.3%, to $6 12 mil­ issue of Bank Credit Analyst, a monthly re­ lion, because of "an unusually large" num­ view of the U. S. investment markets, which ber of cancellations. warns that the "benchmarks of rationality" The bank said the decline "reflectedhigh are disappearing, and fears that the coming debtlevels and budgetary constraints in some international crash may begin in Tokyo, Arms Traffic developing member countries as well as which is experiencing the wildest specula­ generally low commodity prices world­ tive boom since 1929. Bribery charged in wide, which depressed their export earn­ The article ends by asking, is the world ings. " ID 1986, the net transfer of re­ going toward a boom, such as that which Indian-Swedish deal sources-net loan dispersal minus interest followed the 1953-58 stockmarket boom, or and principal repayments-by the bank to toward another Crash of '29, which fol­ On April 17, Swedish State Radio claimed Asian nations fell to $237.4 million, from lowed the boom of that year? that Indian ministry of defense officials had $421.3 million in 1985, a decrease of ap­ On the following Sunday, April 19, the accepted $8.4 million in bribes to award a proximately 43%. The fall was explained as New York Times argued, in its blinkering contract for just over $1 billion to Bofors, a resulting from net increase of repayments in "what, me worryT' style , that "a 1929-style subsidiary of Nobel Chemicals that is also relation to dispersals and the effect of cur­ crash followed by a collapse in economic implicated in arms smuggling to Iran. rency exchange losses. output is highly unlikely," citing the ability Swedish radio claimed the money was paid of governmentsto quickly shore up banking to members of India's ruling Congress Par­ systems and immediately restore consumer ty, and that $5 million had been paid in late purchasing power. 1986 into Swiss Bank Corporation accounts Fascist Economists that have been traced back to Indian offi­ cials. 'Techno-corporatism' The Indian defense ministry, the Swed­ ish government, and Bofors have all denied the wave of the future? that bribery took place. Former Bofors man­ aging director Martin Ardbo told Aftonblad­ "Enlightened techno-corporatism" is the PublicHealth et, the newspaper of the Swedish Social name being given by Austrian economists Democratic Party, that Swedish Prime Min­ and politicians to the system that currently Incidence of TB ister Olof Palme had been instrumental in rules there. One Vienna source said, "Our getting Bofors a multimillion-dollar order policy is consensus among social partners, increasing among blacks fromthe Indian governmentin January 1986, which is sometimes given the name of neo­ shortly before Palme was assassinated. corporatism ....It is a system that is unique The rate of tuberculosis infection among The government of Prime Minister Ra­ to Austria, but with internationalapplicabil­ blacks far surpasses that among whites, ac­ jiv Gandhi denounced the allegations on ity. " cording to Dr. Richard O'Brien, chief of April 18. The government said the allega­ Since corporatism was one of the pillars clinical research at the Centers for Disease tions were "one more link in the chain of of both Nazi and fascist economic and social Control's TB division. denigration and destabilization of our polit­ policy, our source hastened to distance his Dr. O'Brien stated that blacks are con- ical system." Following a meeting of the enlightened conceptions from the earlier

16 Economics EIR May 1, 1987 Briefly

fonns: "It's different from fascism because The Recovery fascism seeks to fit everything under one corporation, all under one solidarity. But FCA earnings fall, • THE STEEL SECTOR collapse society is composed of many solidarities. has continued as Sharon Steel, the There is freedom for the individual to fonn bankru tcy threatened p 12th-largest steelmaker in the United his own solidarity. Solidarities are problem­ States, filedfor Chapter 11 bankrupt­ solving mechanisms , one way to solve prob­ The $30 billion Finance Corporation of cy reorganization on April 10. LTV , lems .... " America, America's largest thrift institu­ number two in the United States , and Meanwhile, in Gennany, one Gennan tion, is ready to collapse, after announcing Wheeling-Pittsburg, number eight, economist, a corporatist, noted, "My ideas an 81% fall in its first-quarter net income, are already in bankruptcy, and Beth­ are getting popular among the labor unions." and a major operating loss due to the col­ lehem, the number three company, is Reflecting the truth of his statement, the lapse of mortgage-backed securities in its reportedly close to filing. Metal Workers Union signed a wage agree­ portfolio. ment on April 21 that meets all the basic The more than 10% collapse of these • CUBA has quarantined all indi­ tenets of the corporatist school of econo­ securities since March 31 guarantees a much viduals who test sero-positive for the mists in Gennany (see Report/rom Bonn) . worse loss during the second quarter, which AIDS virus. Three Cubans have died the shaky savings and loan cannot sustain. of AIDS so far, and of the 7% of the Last summer, FCA borrowed $6 billion population tested to date, 108 have short-tenn to buy long-tenn mortgage­ the virus, all of whom were put into backed securities , in a desperate effort to quarantine. Of 20,000 foreign stu­ Development make money. dents tested, 107 tested positive and In addition, loan losses are mounting on w€re deported to their home coun­ Japanese prime minister FCA's real-estate portfolio, especially in the tries. stricken oil patch. reveals aid plan • THE WALL STREET Journal recommends use of U.S. government Japanese Prime Minister Yasuhiro Naka­ . bonds "denominated in gold" as a way sone will reportedly unveil a new $30 billion of easing America's debt burden. lbero-American loan plan during his meet­ Free Enterprise "U.S. bonds denominated would no ings with President Ronald Reagan sched­ doubt be welcomed by foreign lend­ uled for April 29-May 2. Another Colombian dope ers ," the Journal stated on April 20. Fonner Foreign Minister Shintaro Abe, Appropriately enough, the same ar­ who was in Washington, D.C. preparing for king may be deported ticle announced that Disneyland will Nakasone's meetings with the President, said beginissuing its own money in May­ that the funds for the loans would be drawn Gilberto Rodriguez Orejuela, the only Co­ Mousca-money. from the trade surpluses Japan has with oth­ lombian drug kingpin now in jail aside from er nations , and that some of the loans would Carlos Lehder, may be extradited to the • CITIBANK lost an estimated $50 be guaranteed through the Japanese Export­ United States after all. million on Brazilian loans in the first Import Bank. Rodriguez Orejuela, the drug banker ex­ trimester of 1987, and estimates are The Washington Post reported that the posed by EIR as working with Project De­ that it will lose $190 million by the "new loans and investments in Latin Amer­ mocracy's American Institute for Free La­ end of the year. Analysts estimate ica over three years would be a major stim­ borDevelopment (AIFLD) in Colombia, had that, overall, U.S. banks will lose ulus to the economies . . . would ease pres­ nearly succeeded in getting U.S. charges $900 million in profits by Dec. 31. sureon theworld financialsystem, and could against him dismissed by a Colombian court stimulate U.S. exports to those Latin na­ "for lack of evidence." But someone appar­ • PRESCRIPTIONDRUG prices tions." ently gave the judge hearing the case a kick rose by more than four times the rate Simultaneously in Washington, a group in the pants. of inflation during the last two years, of U.S. senators , including Majority Leader U.S. evidence against Rodriguez that had according to a congressional study Robert Byrd (D-W. Va. ) and Minority Lead­ remained untranslated is now being trans­ released in mid-April. Charged with er Robert Dole (R-Kan.) sent Prime Minis­ lated. New evidence has now arrived from gouging the public, pharmaceutical ter Nakasone a letter threatening more trade the United States , and Rodriguez is sweat­ companies responded that R&D costs problems if Japan does not agree to import ing again. were responsible, but the House U.S. products such as super computers, farm Meanwhile, Carlos Lehder's U.S. trial Committee on Health and the Envi­ products , and telecommunications equip­ has again been postponed at the request of ronment claims that such costs could ment. The letter was released following defense lawyers, this time until September not possibly justify the increases. Abe's visit to the Senate on April 21. 8.

ElK May 1, 1987 Economics 17 TIillOperation Juarez

Currency reform and replacing the IMF

[The previous installment quoted fr om Lyndon LaRouche's 1982 writing, Operation Juarez, on the sp ecificmonetary and credit measures to be taken by an Ibero-American Common Part 32 Market.] Ibero-American integration The 'peso de oro' It is worth reviewing what LaRouche has said on national This installment concludes Chapter 11, the final monetary reforms, since various countries have already un­ chapter ofEIR 's exclusive translation of the Schiller dertaken such reforms in the name of fighting inflation, but Institute book, Ibero-Amer­ the truth is that they have accomplished precisely the oppo­ ican Integration: 100 Mil­ site. Such is the case of the Austral Plan in Argentina, the lion New Jobs by the Year Cruzado Plan in Brazil, and a possible Aztec Plan which the 20001 published in Spanish IMF wants to impose in Mexico, against the will of that in September 1986. It was nation. commissioned from an in­ ternational team of experts The primary purpose of a correct monetary reform is to by the Schiller Institute's take sovereign control of the nlltional currency, under con­ Ibero-American Trade Union ditions of galloping inflation in which the state has lost con­ Commission, to elaborate trol of its money, either because the central bank is not owned the 1982 proposal by Lyn­ by the state and is in the hands of private interests (as in the don LaRouche for an "Op­ case of Venezuela, for examplej; because the drug mafia has eration Juarez" that will flooded the country with dollars that they have exclusive transform the huge foreign debt problem into the control over (for example, Bolivia and Colombia); or because springboard for a regional economic boom. another nation has direct control of the national currency (as The "Garcia solution," to politically break with in Panama) . In all of these cases, a central bank owned by the IMF and not pay more than 10% of export rev­ the state must be established, andthen it must do what Jacques enues for debt service, is a 'step toward fo rming a "debtors' club" and an Ibero-American Common Rueff did for President Charles de Gaulle of France several Market. Since the book was written, Brazil's gov­ decades ago: He issued a strong, or heavy, new currency, to ernmenthas followed Peru's President Alan Garcia, replace the old one, and established a new, stronger parity with its courageous declaration of a debt morato­ vis-a-vis the dollar. rium on Feb . 20, 1987. The Austral and Cruzado PI�ns go in the opposite direc­ Numbering of the tables and figures follows that tion. While the governments of Argentina and Brazil may of the book. have replaced the existing currency, they have put in its place a weaker one, more dependent on the dollar. In the case of

18 Operation Juarez EIR May 1, 1987 Fighting fo r a new world economic order: Colombia's Unified Labor Confederation at its fo unding meeting in November 1986. At the center of the table is fo rmer Labor Minister Jorge Carrillo, who addressed the conference where the Schiller Institute Trade Union Commission was launched in 1984 . the Austral Plan , the parity of the austral and the permissible national currencies, in each of the nations under study, in­ volume of new money in circulation depends directly on the cluding the United States. An average price for the different quantity of dollar reserves the country has, such that Argen­ products was then arrived at , and then the cost of the market tina has lost sovereign control over its own currency. basket as a whole for each Ibero-American nation was deter­ Not only that . The Austral Plan involves sharp reductions mined, converting it into dollars at the standing free-market in the living standards of the population and in levels of exchange rate of each currency. industrial activity, with the argument that this is the only Put another way, if the basic market basket costs $100 in means of combating inflation. But inflation, despite the typ­ the United States, it was discovered that that same basket ical arguments of the IMF, was never defeated through de­ costs only $33 in Brazil; or rather, that the Brazilian currency struction of the productive capacity of an economy. In Ibero­ was under-valued by 67%. Instead of having an exchange America, inflation is 90% imported, in the sense that it is the rate of 22.0 cruzados to the dollar, the exchange should be result of forced devaluations imposed by the IMF, and of the 7.3 cruzados per dollar, given that at this exchange rate the collapse of productive investment, again as demanded by the same physical quantities of consumer and producer goods IMF. Eliminate these deadly policies, and there will be a could be purchased in the two countries. substantial reduction of inflation, just as happened during the The results of the calculations are reviewed in Table lI­ first year of Alan Garcia's presidency in Peru , where inflation S, and are truly impressive. The Mexican peso is undervalued fe ll from 250% annually to 60% , while nominal salaries rose by 54%; its correct exchange rate as of Aug. 1, 1986 should 95% and buying power increased 23%. have been 294 pesos/dollar instead of the 639 pesos/dollar it The fact is that all the Ibero-American currencies are was on the free market. The Argentine austral is undervalued incredibly under-valued by the IMF's financial warfare , and by 41 %; the Colombian peso by 42%; the Venezuelan bolivar ne� parities must be established among them and with the by 58%, and the Peruvian inti by 46%. major international currencies. The best way to do this is through the creation of a common Ibero-American currency, IMF or development which could be called the "peso de oro ," and whose value Until now we have presented our explanation of the mon­ would be fixed at approximately 750 pesos de oro per troy etary and fiscal measures that would have to be adopted to ounce of gold . The value of each Ibero-American currency facilitate the creation of the Ibero-American Common Mar­ should be defined in re lation to this peso de oro and not in ket-or better put "the sphere of co-development"-that direct relation to the dollar. If the dollar returns, as it should, Ibero-American integration would bring about. These Oper­ to fix its value with re spect to gold, at around $750 per troy ation Juarez-style measures are reviewed in Table 11-6. ounce of gold , then the peso de oro and the dollar could be Of the four points, all except the last are steps that can be interchanged at the rate of one-to-one . taken within Ibero-America, by Ibero-America, and without To determine the correct parities of the Ibero-American having to ask permission of or convince anyone. Only point currencies, we have proceeded from the simple premise that 4 of Operation Juarez, which poses the advantage of reacti­ the true value of a currency is defined by its power to buy a vating the economies of the advanced sector through coop­ normal market basket of consumer and producer goods. A erative projects, depends on a political decision that must be list of 20 such basic products was prepared, and a census made outside of Ibero-America. taken to define the Aug. 1, 1986 prices of these products, in These distinct policy decisions in turndefine two variants

EIR May 1, 1987 Operation Juarez 19 TABLE 11-5 Real value of lbero-American currencies with respect to the dollar (as of August 1, 1986)

Free-market Official Real exchange exchange Real undervaluation Currency rate rate value* (%)t

Argentina austral 0.91 0.91 0.54 41 Brazil cruzado 22.00 13.85 7.30 67 Colombia peso 202.00 196.98 117.91 42 Mexico peso 639.00 622.00 293.68 54 Peru inti 17.60 13.98 9.43 46 Venezuela bolivar 19.00 7.50 8.04 58 lbero-America peso de oro 1.00 1.00

·Calculated on the basis of national prices for a market basket of 20 products selected from the different countries. and compared with the price of the same products in the United States (prices taken in the capital city of each country). tUndervaluation calculated with respect to free-market exchange rate.

of Operation Juarez that must be evaluated separately. First, nized, but then the advanced sector makes new loans of $100 "Operation Juarez A" (points 1-4) , in which the advanced billion per year between 1985 and 1990. We estimate that sector actively participates in the creation of a New Interna­ that amount would increase to, $140 billion a year between tional Economic Order, and provides in the coming decades 1990 and 1995, and would drop back to $120 billion annually a substantial flow of credits to help finance the greatpro jects from 1995 to the year 2000, to add up to a total of $1.8 trillion of infrastructural, industrial, and agricultural development in over the next 15 years-the necessary level of foreign fi­ Thero-America. nancing that we identified in Chapter 5. This means, as can And second, "Operation Juarez B" (points 1-3), in which be seen in Figure 1 1-2, a substantial increase in Ibero-Amer­ historical blindness continues to prevail in the United States ica's foreign debt. The reader might perhaps be tempted to and other countries of the North , and they refuse to collabo­ conclude that this is bad, but the fact is that the new debt, in rate in the development of the South. In this case, the devel­ this case, is simply a vehicle for transfer of tangible capital , oped sector nations respond to the formation of the Debtors and not a vehicle for looting, as it is under the current inter­ Club and the lbero-American Common Market by declaring national monetary system. financial and tradewarfare . Figure 11·3 shows the interest payments that Ibero­ Thero-America must be perfectly prepared for either of America would make under each of the three options. In the these two possibilities. case of the IMF, even assuming the more generous version What we wish to emphasize is that either of the two that Kissinger proposes, there would only be a 3-point reduc­ versions of Operation Juarez is preferable-by far-to what tion in interest rates charged. This means that, in the first it would cost Ibero-America to continue under the current year, interest payments would fall from $36.4 billion to $26.7 guidelines of the International Monetary Fund (IMF) . In the billion; but then this quantity would slowly increase and , by following figures, we have made approximate comparative 1990 , annual payments would again be at $30 billion. projections of what will happen to Ibero-America if it adopts With Operation Juarez B, an interest rate of only 6.8% either Operation Juarez A or Operation Juarez B, and what would be paid on the legitimate debt of $20.5 billion; as we will occur if it continues to enforce IMF measures. have said, this would reduce annual interest payments to only What will happen with the total foreign debt? As can be $1.4 billion. With Operation Juarez A, annual interest pay­ seen in Figure 11-2, the IMF plan (which for our purposes ments would only be $7.4 billion (2% on the reorganized old we have taken as identical to the previously mentioned Kis­ debt of $370 billion). Although the total debt would increase singer proposal) rises from $370 billion in 1985 to $429 in the manner indicated in the previous figure, there would billion in 1990. Under Operation Juarez B, Thero-America be a grace period of 15 years on principal and interest charges only recognizes its legitimate debt of $20.5 billion, and there on this new debt, and therefore it would not yet affect pro­ is neither technology transfer nor new loans in the years that jected interest payments from 1985 to 1990. follow . By fully applying Operation Juarez A, however, the In Figure 11·4 one can see what the three options under $370 billion of the current debt is recognized and reorga- discussion really mean, in terms of the GNP projections for

20 Operation Juarez EIR May I, 1987 TABLE 11-6 FIGURE 11-2 laRouche's "Operation Juarez" proposal Projections of lbero-American debt: three

I. Reorganize the lbero-American foreign debt through collec­ options tive negotiation 1985-1 990 1. Capitalize or "purchase" the current Ibero-American foreign (billions of dollars) debt through emission of new bonds on the part of the Ibero­ American countries (at 2% interest, payable in 30 years, with 15 years grace on principal). 1000 2. Dump the IMF and World Bank. II. Form an lbero-Amerlcan Common Market 870 1. Establish a customs union to stimulate intra-regional trade. 2. Reestablish the real value of Ibero-American exports, both 800 for intra-regional as well as extra-regional trade, based on the concept of "guaranteed prices" (the real cost of produc­ tion plus a fixed profit percentage). 600 3. Dump the GATT. 4. Form an inter-republic bank among the Ibero-American na­ tions, which would serve as: 400 370 a) a central bank for settlements, to facilitate trade and other

. agreements of the Common Market; . . b) to establish an lbem-Americancommon currency, a "golden . . peso," with a new exchange rate to the dollar, defended . 200 . . Operation by exchange controls; and . . . Juarez B c) to create an lbero-American development bank to faCilitate . . 20.5 financing of the indicated projects. e •••••••••••••••••••••••••••••••• ' o III. Reform the national monetary systems of lbero-Amerlca 1983 84 86 87 88 89 90 1. Establish state-owned national banks, which would issue loans solely for productive purposes. 2. Impose capital and exchange controls, to the extent nec­ essary to maintain the currency exchange rate. FIGURE 1 1 -3 3. Institute, where necessary, major monetary reforms to elim­ Projections of lbero-American interest inate the drug and black markets through substituting the existing currency with a new one. payments: three options IV. Reactivate the advanced-sector economies 1985-1 990 1. lbero-America should import from the developed sector be­ (billions of dollars) tween $100 and $140 billion worth of capital goods per year, to invest in continental infrastructure projects. This should be financed through new net credits issued for this amount, negotiated at 2% interest, payable in 30 years and with 15 50 years grace on principal and interest. 2. Nationalize the U.S. Federal Reserve; return the dollar to the gold standard (at approximately $500 per ounce of gold); 40 drastically lower the interest rates; and encourage loans solely for productive purposes. " 3. Encourage the U.S. defense program, based on beam weap­ IMF 30.0 , - - ons and other advanced technologies. 30 ------''------

20

lbero-America.With Operation Juarez A, for example, there Operation is an average annual growth of 10%, which brings us to the 10 Juarez A 7.4

year 1990 with a GNP of $1. 141 trillion. • Operation • • Juarez B 1 .4 In the case of Operation Juarez B, there is no doubt that •...... o a trade embargo would cause damage to the Ibero-American 1983 84 85 86 87 88 89 90 economy, especially during the first two years, in which an approximate 15% fall in GNP would take place overall. But the fact that, despite the trade embargo, Ibero-America would The worst option for Ibero-America is that of the IMF. put a halt to the looting of the continent, and would produc­ We have estimated that, by following the recessionist poli­ tively employ the 35% of the work force which today is cies of the IMF, the Thero-American economy would collapse unemployed, means that the economic recession could be at an accelerating rate of 5% in 1985, going to 10% in 1990 quickly halted, and a trajectory of growth restored; although . . . if such policies do not first trigger an economic and definitively at a slower rate than that of option A. By 1990, social catastrophe of incalculable dimensions, which would the totalGNP would again be equal to that of 1985: $708 bring Ibero-America to African-like conditions in a matter of billion. a few years.

EIR May 1, 1987 Operation Juarez 21 I

FIGURE 11-4 Projections of Ibero-American GNP: three options 1985-1990 (billions of dollars) Wh at th e To wer 1,141 Commission

Operation did not say Juarez. . . . .B ...... __ -- . -.. l - ...,...r:-:-;:-...... • I . _ • • ..... • • 708 ...... • • ...... •t.: _ _ _ ... - ...... 47 1 - - An invisible, parallel government has been running U.S. foreign policy and economic IMF policy-into a series of disasters that leave us open to Soviet conquest. Now, this invisible government can be exposed and driven from power. The United States can regain its sovereignty. o

1983 84 85 86 87 88 89 90 Order EIR 's latest Special Report, for yourself and your congressman. Full documentation of the investigation behind the exclusive news This doesn't have to be the future of the continent. Ibero­ stories you read in EIR. An indexed guide to American integration offers a way out of the crisis, based on Israeli and Soviet foreign intelligence networks development and sovereignty, a way out that would tum in the Department of Justice and other Ibero-America into an economic superpower in less than a government agencies, as well as the key generation. "private" law firms, with greater power than There are those who will argue that our integration project most elected officials. is impractical, that it is too ambitious, that it breaks all the rules of the game. They will explain to us, patiently, that it is time that we learned that "politics is the science of the Please send me __ copies of the "Project possible. " Democracy" Special Report at $250 each postpaid. Please send (Rep. or Sen.) -'-______But this is untrue . True politics is the science of what is a complimentary copy of the Report,'at $250 each necessary, not what is possible. And, as Peron said, integra­ postpaid. tion is necessary, and therefore must be achieved, even if it [ enclose $ check or money order. appears impossible. In any case , it is this quality, of doing Please charge my MasterCard Visa . the near-impossible, which defines us as human beings. In 0 0 this historic integrationist task, Ibero-America should make No. ____ --:--____ Exp. Date ____ _ its own the words of the great German patriot and world Signature __ ---;-__" ' _ -:--______citizen, Friedrich Schiller, when he said: Name ______�------

Man must be greater than his circumstances; he Street ______must be greater than his destiny . City _____ State ---,__ Zip _____

Or, as President Alan Garcia expressed it more recently, Telephone ______-;-- ______during his July 28, 1985 inaugural address to the Peruvian nation: Make check or money order payable to: ElK News Service There remains something much greater to be done: P.O. Box 17390 the moral works of faith , which make each of us great Washington, D.C. 2004 1-0390 in the face of difficulty, and as great as history de­ mands.

22 Operation Juarez EIR May 1, 1987 "IS IT ANY WONDER QUACKS TRIUMPH ? ..*

" The exorcist approach to purging our land of ind ustrial chemicals is one of the most serious issues facing America today," says Dr. Elizabeth Whelan, a Harvard­ educated scientist and director of the American Council on Science and Health. The subsequent crippling of various U.S. industries accomplishes nothing in terms of public health, she maintains, asserting that the American people are being deprived of some of the most useful, safe and cost- effective drugs and chemicals - many lifesaving - by the rad ical environmental extremists exposed in this controversial book.

* ... Whelan sets the record straight on issues exploited by environmental and Naderite public interest movements of the last two decades_ Fills an important gap between the scientific consensus and the 'media consensus: " - Rael Jean Isaac, The American Spectator.

• "Whelan has a sure grasp for the " scientific facts." " • To xic Te rror is a convincing and • I think she is a person with - Issues in Science and persuasive work by a professional a great deal of imagination, Te c hnology, National Academy who strives for balance and and courage to speak the of Sciences rationality... a forthright and level· truth. And there aren't too headed account of what has been many scientists like that in • "Her argument builds to the book's going on in our environment, where this world of ours." final, excoriat ing chapter on the mistakes have been made, who's - Norman Borlaug, unhappy affiliation between envi· accountable." Nobel Laureate ronmentally extremist scientists - Edison Electric Institute and sensation·seeking 'media'. " - The Wa ll Street Journal • "This reviewer, for one, hopes SPECTOXIALIC TERROR OFFER that To xic Te rror outsells those two • "The message she tries to put out is regularly $16.95, environmental polemics, Paul to businessmen, scientists, environ· but you may order this Ehrlich's The Po pulation Bomb and mentalists, housewives, and anyone startling new book for Rachel Carson's Silent Spring, who'll listen is exactly the opposite: only $12.95 plus postage. combined." calm down." - The Detroit News - The MacNeil/Lehrer News Hour r------8i------,rttxl JAMESON BOOKS 722 Columbus Street Ottawa IL 61350 (815) 434-7905

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Wo rld debt and the world social-democmcy I I t by Lyndon H. LaRouche. Jr.

Editor's Note: In the firstpart of this article (EIR. :Vol. 14. No . 17. April 24. 1987), the author stated: "The current and past role dfthe Socialist International inside the government of the United States, and in thf internalaffa irs of Central and South America, is a major contributing cause fo t the presently accelerating col/apse of the international financialsyst em. If we areito stop the sp iral of col/apse in agriculture. industrial employment, and incomes, inside the United States. our citizens must understand the wicked role of the social-democrats in U.S. domestic and fo reign policy. and eliminate that dangerous fa ctor from the shaping of our national policy. .. LaRouche then outlined the urgent steps that must be taken to reverse the present economic depression . What fo llows is the second and final part of the article.

Economic recovery as such The domestic and foreign measures just listed are the essential adjustments in monetary and related policies needed as preconditions for halting the financial collapse and beginning a general economic recovery. The needed economic mea­ sures begin with an urgent repeal of the Gramm-Rudman-Hollings legislation and repeal of the recently adopted , catastrophic tax bill. The principalerror of Gramm-Rudman-Hollings was that it addressed a symp­ tom, rather than the cause of the problem. The expansion of the federal budget deficit under the Reagan administration , was a legacy' of the Carter-Volcker mea­ sures inaugurated during October 1979, and of President Reagan's adoption of this mistaken "Volcker" policy. The result of Volcker' s policy, in the context of a ' "post-industrial" orientation, was to collapse the real tax-revenue base more rap­ idly than governmentexpenditures were being cut. At the point that further cuts in federal expenditures could have only a disastrous impact on the economy, and a catastrophic impact on national defense, Gramm-Rudman mandated cutting the budgets further. Thus , the collapse of the tax-revenue base was accelerated by Gramm-Rudman, so that Gramm-Rudman proved to be a cure worse than the disease.

24 Feature EIR May 1, 1987 Some leading lights of the world social democracy-left to right: AFL-CIO President Lane Kirkland; Socialist International head Willy Brandt; Irwin Suall, head of the "Fact-Finding Division" of the Anti-Defam ation League.

What should have been done, was to address the cause of tolerate the substitution of special ideologies for common the deficit problem, the collapse of the tax-revenue base, a sense in the shaping of economic policies. By "common collapse caused, in tum , by the collapse of the economy. sense," we should mean that a nation whose constitution Unfortunately, the President and others were so zealous to commits governmentto promote the general welfare for pres­ maintain the reputation of a "Reagan economic recovery" ent generations and posterity alike , can not regard as hall­ which was nonexistent in fact, that the very mention of col­ marks of prosperity such conditions as we see in most of our lapse of the economy was prohibited in those circles which major cities, in the looting of our farmers, the collapse of our should have been addressing this problem. So, the illusion of industrial potential , the collapse into rot of our basic econom­ Gramm-Rudman was introduced to foster the conceit that a ic infrastructure , a continuing collapse in the general levels recovery was already in progress. of real buying-power of our households, and a savage oppres­ This paradoxical situation was promoted by a combina­ sion of our senior citizens. To take a low-paid service job, to tion of both misreading published statistics, and some polit­ replace a skilled operative's position lost, is not maintenance ically influenced cosmetic adjustments contained in the sta­ of employment-levels. To import cheaper foreign products, tistics reported as "official." One had the compelling sense, just because they are cheaper than domestic products , is not that the President's economic advisers were reading the charts consistent with elementary notions of national security. while standing on their heads . The optimistic reports of the For 20 years , our drift in economic and monetary policy past four years have been what the presently depressed state has been a catastrophic error. The ideologues have insisted of the economy now states so plainly, illusions manufactured that an orgy of "free trade ," if continued long enough, would and credulously adopted, in defense of a misguided, rather be the only way to true prosperity. Our Founding Fathers obsessive desire to believe that the President's "economic were of the directly opposite persuasion, and rightly so . If agenda" was "working." we chose to ignore the writings of Hamilton, Carey, and The administration and Congress should have looked back others , today's reality should teach us what we should have to the success of the Kennedy investment tax-credit reform . known from history . "Free trade" has brought us to ruin, yet Instead, a tax-reform was adopted which explicitly de­ the ideologues say that our current economic policy will bring nounced, as well as r1ierely rejected, the principles which had prosperity, because it is consistent with ideologues' dogmas made the Kennedy tax-reform a great success. Tax incentives of "free trade ." for investment in that which promotes general prosperity, is We were told that Hong Kong was a model of prosperity, not a matter of coddling some "special interest." Overall , the and , surely, we have given more and more of our citizens a adopted tax-reform was even more of a national disaster than taste of the conditions of life of the coolies of Hong Kong. the unworkable Gramm-Rudman-Hollings policy. Perhaps our citizens do not wish to be Hong Kong coolies; The time has come and passed, that our nation could they seemed to have delivered such a message to President

EIR May 1, 1987 Feature 25 Reagan during the November 1986 congressional elections, occupations which are variously marginal or useless, social although until now he seems not to have received the com­ services-oriented and kindred types. Our youth are being munication . deprivedof the developed capacity for rational thinking , and The first measure of economic policy must be an imme­ lack the developed capacity for efficient assimilation of the diate revision of the tax code , to provide a substantial margin technologies associated with the productive work-places of of advantage to those savers and lenders who promote em­ today and tomorrow. We must shift human resources from ployment of operatives in energy-intensive, capital-intensive redundant administrative and service occupations, into edu- r modes of use of advanced productive technologies. Every cation and health . job so created increases the tax-revenue base, lowers unem­ The growing AIDS-pandemic crisis points up the cata­ ployment, raises average incomes of households, and in­ strophic collapse in our health-care system over the past creases national productivity. Those whose investments best dozen years. We must build up to the levels this pandemic servethe national interest lessen our tax-burdens, and should implies, very rapidly, and plan to maintain a mobilizeable be encouraged accordingly. reserve capacity of health-delivery and combined medical An investment tax-credit policy, which shifts a signifi­ and biological research consistent with that. We can not cant margin of tax-burden from incomes invested in priority pretend that adequate anti-AIDS measures are "cost-prohib­ categories to those which compete with scientific and pro­ itive" when many millions are faced with probable doom and ductive investments, has always proven successful, as it did great suffering because of thi� rapidly mutating infection . duringthe early 196Os . Moderate Democrats , as distinct from We can not say, "We can not afford it." We must increase the more radical , social-democratic currents , should insist our national income to levels at which we can meet our moral that this be Democratic and national policy for promoting and constitutional obligations to the general welfare . recovery. Except among senior induSfrial managers and engineer­ The leading problem in our national economy today, is a ing professionals, the relationship between investment and lack of physical productivity, a deficit in per capita physical increase of productivity is very little understood today . The output. This problem has two chief causes. First, too small a subject is almost unknown among most professional econo­ ration of our labor-force is employed in production of phys­ mists, because the university economics curricula and profes­ ical goods, as opposed to too high a ration employed in sional journals have emphasized monetary theories, to the administration, sales occupations, and low-skilled services. virtual exclusion of study of principles of physical economy. Second, too Iow a level of average productivity among in­ Therefore , I must "pull rank" and identify those rules of dustrialoperati ves; this is caused chieflyby an accumulation thumb, already more or less emphasized by Hamilton and of technological obsolescence and related wear-and-tear in others , which are generally unknown to most economics our industries and basic economic infrastructure. professionals today. We should adopt the following employment objectives: There are six conditions wbich must be satisfied, to en­ 1) A rapid increase of employed operatives by about 5 sure that investment policies in a national economy are those million, with progressive increases of the employed-opera­ which promote sustainable rat�s of growth of average pro­ tives percentage of the labor-force toward 50% of the total ductivity. Physicists and mathematical economists would la­ labor-force. This, by itself, will mean a very substantial and bel these six preconditions "constraints." continuing increase in average per capita productivity of the 1) The quantity and quality of the per capita market­ labor-force as a whole, and will bring our ability to produce basket of combined physical goods, science and engineering physical output into conformity with our urgent needs. services, education, and health-care must rise only less slow­ 2) A policy of increasing the percentage of the labor­ ly than advances in both the levels of technology and produc­ force employed in various forms of technologically progres­ tivity. Otherwise, growth of productivityca n not be sustained sive research and development, from a reestablished base in a general way. This was firstpointed out in Leibniz's first level of 5% to a medium-term target-level of 10%. of many contributions to econoJillic science, his 1672 Society 3) A policy of discouraging growth of employment in andEconomy, and is proven valid over the centuries since. categories of administration, sales, and services, except in 2) The quantity of usable energy, both per capita and per science, engineering, production management, education, hectare, must increase in correspondence with advances in and health. the levels of technology and productivity. Given two econo­ 4) A program for shifting marginally employable youth mies at the same level of technology, such as the U.S.A., into large-scale employment-training programs in connec­ Japan, and West Germany of the early 1970s , the energy tion with development of urgently needed, larger-scale infra­ required per capita shrinks in proportion to the increase of structurebuilding projects . population-density, chiefly because of the factor of energy­ Our educational system is increasingly a disaster at all consumption measured in energy per unit-area developed. levels. We are producing larger and largerrations of gradu­ The two factors , per capita and per hectare, can be measured ates who are either virtually unemployable, or trained for together, as energy-density per per-capita unit of population-

26 Feature EIR May 1, 1987 density , which gives approximately the correct estimate for result. This assumes that the rations of employment in sales, economies of varying population-density. At the same level administration, and unskilled services do not expand exces­ of technology, this per capita value is approximately con­ sively. stant. Government has three inalienable responsibilities in pro­ 3) The level of temperature-equivalent of energy applied moting such economic progress. must increase secularly, in correspondence to advances in I) Government is responsible for basic economic infra­ general levels of technology and productivity. The past 500 structure , either through direct government investments, or years of history of productivity in the iron and steel industry regulated public utilities. These include the social infrastruc­ is the textbook illustration of this point. Camot' s famous rule ture of education and health-delivery institutions. They in­ of thumb is another textbook illustration . Today , we say that clude, otherwise, fre sh-water management, general trans­ the relative "energy flux density" and "coherence" of applied portation systems, generation and distribution of energy­ energy-stocks must be increased . A standard quantum of stocks, general communications, and urban-industrial infra­ structure . Infrastructure is properly classed as part of the basic cap­ ital investment of a national economy, and is integral to other capital investment, functionally, since agriculture and indus­ The core oj the social-democracy 's try can not develop and function unless infrastructure is de­ "intellectuals" is composed qf veloped and maintained at an adequate corresponding level "Nordic racists, " who view the of technology. Infrastructure is a very large ration of the total capital stock of a national economy. The rates of improve­ bleak-skinned populations oj ment of infrastructure determine, by a lag-factor of 12 to 18 Northern Europe,jro m Muscovy months, the rates of growth or decline of productivity in the westward, as a superior race, postwarU. S. economy. 2) Government must elaborate its monetary and tax pol­ which must not be compelled to icies, as well as expenditures, in ways which promote flows share scarce resources oj the planet of money, credit, and debt into the relatively more desirable with the darker-skinned aspects of private investments. 3) Government must take leading responsibility for pro­ populations,jro m Spain and Italy moting scientificand technological progress in the economy. southward. Traditionally, this role of government in the U.S. economy has been concentrated in three areas: a) education and re­ search, b) development of improved infrastructure , and c) technological progress transmitted into general production through military research and procurement. The case of the some selected frequency of coherent electromagnetic radia­ Apollo space program provides an excellent example of a tion, is the best yardstick for use, from a physics standpoint. non-military program which amplifies the role traditionally 4) The agricultural percentage of the total number of assigned to military procurement. The SDI advanced-tech­ labor-force operatives must decrease, on condition that the nologies program is an example of a model military program food and fiberproduction per capita for the entire population of this type. The Mars colonization project is the new Apollo is increased. This was stressed in Hamilton's 1791 Report to program of the coming 50 years . the Congress, "On The Subject of Manufactures." Respecting scientificand technological progress, govern­ 5) The percentage of the number of urban operatives ment functions properly as a key participant in shaping a employed in production of producers' goods , must increase, national consensus on long-range technological perspectives on condition that per capita production of households' goods for the economy as a whole. Industry and agriculture must increases for the population as a whole. be assured that government's combined monetary, taxation, 6) Technology, as Leibniz first defines the meaning of educational, infrastructural, and technology programs and this term, must advance. policies, over the span of approximately a coming genera­ These are the constraints which must be satisfiedby com­ tion, will continue to favor a certain direction in national bined investment and employment patterns, to achieve sus­ technological progress. If that assurance is given in a credible tainable growth of productivity in a technologically progres­ way, private investment is able to commit itself to medium­ sive, energy-intensive, capital-intensive mode . Investment term to longer-terms risks in those directions. in any other mode will lead to a fall in productivity. Invest­ During the initial period of recovery from the present ment in this mode which fails to satisfy these six constraints, economic catastrophe, the President of the United States will tend to be unsuccessful in producing the desired, optimal must be qualified and disposed to devote a large ration of his

EIR May 1, 1987 Feature 27 time to working with scientists and entrepreneurs on medi­ revived as the biological science of the present and future . um- to long-range technology policies. If elected President, Space exploration will depend upon it. Modem optical bio­ I intend to make this a major included function of the National physics is an indispensable part of the biologist'S battle to Security Council's staff, and to recruit scientists and leading conquer AIDS today , and is the key to revolutions in medi­ engineers to that section of the staff, to coordinate the Exec­ cine during the next decade. utive Branch's work with committees of representative entre­ 4) Two revolutions in desi� of computers and related preneurs and research institutions . The consensus on national control devices. Present designsl of digital computers and of technological and related employment and educational goals the architecture of such systems . are far short of the capabil­ developed through such channels, must be incorporated in ities we need for many applications, including aspects of the deliberations of the relevant committees of the Congress, AIDS research today . We need a technology now being as well as the Executive Branch as a whole . brought toward success: "parallel processing," to produce It is clearly foreseeable, that the main science-driver of computer modules capable of performing a billion, or many the U.S. economy over the coming 50 years should be the more floating-point-arithmetic operations per second. For Mars colonization project. Apart from the massive astro­ more advanced problems, including those arising in instru­ physics and related economic benefits which the completion mentation of ultra-high-temperature production processes, of that project will bring to Earth , beginning 40 years from we need a revolutionary new type of analog computer, an now , each step of the project's completion will mean sweep­ optical computer capable of solving nonlinear problems di­ ing advances of technology (and productivity) on Earth about rectly (explicitly). The first pro_otype of an optical-analogi every five years. digital hybrid computer is just a few years or more down the The reason for this economic "chemistry" of the Mars pike, if we force development in' this direction. project, is that once we recognize that man can not safely Science can conceive no ma$terable problems during the travel in space at less than a large fraction of one Earth immediate decades ahead, which do not lie within one or a gravity , we are forced to recognize that every frontier of combination of these four branct�s of technology. (Possibly, scientific progress being developed on Earth today, will be the development of the more advanced matter-antimatter an integral part of the Mars project. This centers on four areas technologies must wait until Mdrs-based astrophysics helps of technology now in various stages of development: us break through some rather furldamental problems of phys­ 1) Very, very energetic controlled electromagnetic plas­ ics-knowledge.) All four are reqpired for the Mars coloniza­ mas, both as new sources of power for general use, and as a tion project. revolution in metallurgy and production of vastly improved My proposal is to use the Mars project as a way of devel­ qualities of materials for all kinds of uses. oping these technologies, providing efficient channels for Using the standard deuteriumlhelium-3 fu sion model , we delivering each new discovery to industry rapidly, as each is have the means, now in development, to create engines with developed. That ensures that otIr industries would always the power of trillions of watts , more than 1,000 times the have available the most advanced technologies possible. largest power station on Earth today . This is the necessary This means a carefully thought-out approach, by both the technology for manned exploration -as far as Mars and Saturn , President and the Congress, to the purpose of ensuring that the necessary technology for colonies on Mars , and a giant government expenditures on th¢ Mars project promote the leap in productivity on Earth . All limits to growth within our emergence of new branches of industry in all regions of the solar system, are smashed by the development of such en­ United States, such that private industries working with Mars­ gines. project technologies are able to transmit those technologies In the meantime , far short of the terawatt engines used broadly throughout the private sector in each region . for manned travel to Mar� (in about two days' travel as opposed to a two-year round-trip with rocket technology) , Those troublesome social�democrats the same methods will begin to pay off on Earth during the The Russians have always been opposed tb rapid eco­ 1990s, both as sources of power and as the basis for a revo­ nomic development of the developing sector, because Mos­ lution in metallurgy . cow sees such development as strengthening the economies 2) Very energetic , coherent electromagnetic radiation, of the United States and its friends. Obviously, the sooner such as high-powered lasers. We are already entering a phase we collapse, the happier the ghost of Nikita "we will bury of building new types of machine-tools using laser principles you" Khrushchev will be; so, anything good for the United for cutting, surface-treating , and so forth . This is the ma­ States is not pleasing to Moscowf The social-democrats , not chine-tool industry of the coming 40 to 50 years , beginning all of wpom exactly like the Russians, are a different kettle now . of fish. 3) Optical biophysics. This is a branch of science actually 'Obviously, as I said earlier ,i I am emphasizing the so­ begun by Leonardo da Vinci and his friends, nearly 500 years called social-democratic "intellectuals," the "bankers ' so­ ago , revived and advanced by Louis Pasteur, and now being cialists," and not necessarily the typical rank-and-filer of a

28 Feature EIR May 1, 1987 European mass-based social-democratic party . I mean , in our of these were intelligence operatives or assets of government own country , the "Project Democracy" crew: Jay Love­ agencies (not necessarily their own country's) in the past, stone's gang of cutthroats , the League for Industrial Democ­ and some key such, like Jay Lovestone and his old 1930s racy, the Anti-Defamation League cronies of Robert Vesco, cronies of the International Rescue Committee vintage, were and the AFL-CIO's international department and its nest trained in Stalin's secret-intelligence service over a number inside Charles Wick's U. S. Information Agency, among oth­ of years. ers of that collection. In Western Europe , I mean the leader­ In the United States, social-democrats were given official ship of the SPD, the Friedrich Ebert Foundation, the left respectability around the U.S. government about the time of offshoots of the Adorno-Horkheimer-Marcuse Frankfurt Theodore Roosevelt's presidency, notably in connection with School, the Brussels staff of the International Committee of the U.S. branch of the British Fabians' Round Table organi­ Free Trade Unions, and the British Fabians. zation, the National Civic Federation (predecessor to the The ideology of the British Fabians is fairly symptomatic New York Council on Foreign Relations). Since approxi­ of these so-called "social-democratic intellectuals" as a whole. mately the period of World War I, the leading strata of such British socialism was a creation of Oxford University's U.S. social-democrats, like Walter Lippmann, functionedas John Ruskin and his circles. The avowedly pro-feudalist Pre­ "State Department socialists." Raphaelite Brotherhood was the center of this operation, the I am not implying that financier circles associated with mother-cult for legions of socialists , spoon-benders, necro­ the National Civic Federation were infected with Fabianism mantics, back-to-nature freaks, and curious religions, of the through their opportunistic adoption of social-democratic English-speaking world, down to the present day. Ruskin strata. British Fabianism, for example, like Bertrand Russell spawned British socialism as "guild socialism," signifying himself, was a late- 1 9th-century outgrowth of the same as­ thus a return to the guild societies of the feudal period, as pect of British liberalism which spawned the system of Hell well as rejecting every bit of political, scientific, and artistic Fire Clubs under Walpole. development in Europe since approximately 1420. The origin of this inside England, was the Venice-cen­ Out of the combined influence of Ruskin and the British tered Lombard banking interest associated with the Venice­ East India Company's John Stuart Mill, came that curious Genoa Levant Company, which took over the governmentof collection of theosophical mystics and "guild socialists" England over the period 1589-1603, and again, most em­ known as George Bernard Shaw's Fabian Society . The gen­ phatically, with the accession of William of Orange, and eral dedication of the Fabians, as professed socialists, was to became deeply embedded in British society with the 1716 mobilize the working class and lower middle class of Britain accession of George of Hannover, following the 1714-16 into a force dedicated to destroying both industrial entrepre­ defeat of the English Tory nationalists under Queen Anne. neurship and technological progress. That is the essence of This Levant Company spun off, most notably, theEast India social-democratic ideology generally today . companies of Britain, the Netherlands, and Denmark. In the case of the mass-based social-democratic parties During the Napoleonic Wars, Britain's liberals estab­ of Europe , the day-to-day image of the social-democratic lished much closer relations to Venice, as expressed by the leader may seem to deviate from Fabian kookishness. This wildly kookish influence ofthe Actons, Bulwer-Lytton, John ostensible difference reflects the fact, that having captured a Ruskin, et al. during the 19th century. trade-union constituency, the social-democratic leaders must As Anton Chaitkin has documented key details of this adjust to what the traffic will bear among these adherents. process, the roots of Fabianism were introducedto theUnited So, the smaller the social-democratic organization, the high­ States during the 1830s and 184Os , throughthe establishment er the percentage of kooks, and the more nakedly Fabian it of the Harvard-based "Young America" offshoot of Maz­ is. In the larger such organization, overt kookishness is the zini's radical "Young Europe" insurgency at Concord and in specialized craft of a handful of kept, academically oriented, South Carolina. Through the plottings of Swiss Jacobin in­ more overtly leftish "intellectuals," such as the Frankfurt surrectionary and sometime U.S. Treasury Secretary Albert School types around Marcuse, Horkheimer, and Adorno. Gallatin, the Smithsonian Institution and the later-founded "Intellectuals" who succeed in rising to positions within the American Museum of Natural Historyon Central Park West trade-union or mainstream party apparatus, are essentially in New York, became the center for spread of the Fabian political thugs, whose thuggery distracts attention slightly kookery among wealthy Eastern Establishment families. fromthe kookishness beneath the surface. Hence, the social­ Social-democracy developedas a by-productof the effort democratic apparatus is an instrument of Fabian, or Fabian­ to mobilize labor as a mass battering-ram for advancement like, feudalistic ideology. It is this combination of social­ of Fabian goals. So, it would bean errorto suggest that social­ democratic academics and apparatus figures upon which we democratic labor-based organizations "infected" rentier cir­ focus here. cles with socialism; the virus of "socialism" had already been This stratum of the social-democracy functions in the spread to labor organizing from these wealthy strata. mode of an intelligence organization. A significant number The significance of the U.S. social-democrats' represen-

EIR May 1, 1987 Feature 29 tation in the National Civic Federation, is rightly seen as cism breeds upon austerity, and "equitable sharing" of sac­ consistent with the fascist movement already then spreading rifices of both incomes and freedoms. Thus, the August 1976 in Europe, in the form of "corporatism," a form of fascism and March 1983 resolutions, onequitable access to means of directly, intentionally modeled on the feudal guild system, economic growth, and the policies of Presidents Garcia and and rooted in the famous "socialist" decrees of the Eastern Samey, are a deadly threat to the policies of the social­ Roman Emperor Diocletian . democracy. So are the relevant declarations on morality in Since approximately 1974, the Socialist International's economy, in Paul VI's Populorum Progressio, Cardinal Rat­ leadership has openly professed its commitment to fascist zinger's November 1985 address, the recent document of society. Especially after the events of 1936-38, the Hitler Justitia et Pax, and the efforts of John Paul II. regime, and Mussolini's submitting to client-status under The core of the social-democracy's "intellectuals" is Hitler, the very word "corporatism" was so closely associated composed of "Nordic racists," who view the bleak-skinned with Hitler's fascism, that social-democratic "intellectuals" populations of Northern Europe, from Muscovy westward, discreetly kept the word tucked in their closets. Only since as a superior race, which must not be compelled to share 1974, have social-democrats ventured to present corporatism scarce resources of the planet with the darker-skinned popu­ openly with such qualifying observations as that it was "fas­ lations, from Spain and Italy southward . This is the stated cism with a human face," or "democratic fascism." policy of a leading founder of the malthusian Club of Rome, Today, the Socialist Internationalis campaigning full tilt Dr. Alexander King, as it was the frequently stated policy of for the establishment of such a fascist transformation. The Britain's socialist EarlBertrand Russell since the early 1920s. arguments they advance, to indicate that such a fascist trans­ Since rejecting malthusian methods of genocide requires formation is a timely one, show their motives for seeking to a generalized resumption of technological progress and eco­ overthrow those developing-sector governments sharing the nomic growth, the Vatican's denunciations of malthusianism current views of such figuresas Peru's President Alan Garcia and of economic injustice against developing nations, drives and Brazil's President Jose Sarney. the social-democratic fascists (and racialists) into a hate­ The social-democrats argue, that as long as society was filledfren zy. committed to economic growth, relations between capital The social-democratic intelligence organizations, oper­ and labor were defined in terms of equitable apportionment ating behind a Venetian-style mask of "leftism" and liberal­ of the benefits of such growth. The difference now, they ism, are the mass-based social battering-ram through which insist, is that we must accept, and adapt to the reality of this hate-filled, racialist frenzy against the Vatican, Samey, negative growth in population and economy. The difference Garcia, et al. is deployed most efficiently. These social­ now, they insist, is that "co-determination" by capital and democrats, already key factors in every bloody coup in South labor must have the purpose of negotiating "equitable" forms and Central America since 1949, continue to slip in as pur­ of sacrifices of income and freedoms. This is a copy of the ported friends of mass-based political forces of developing "corporatism" of Austria's Dollfuss, Italy's Mussolini, and nations, the better to set up preparations for new political Germany's Hitler. assassinations and coups. In German-speaking Western Europe, the social-demo­ Lately, the most important new aspect to these social­ cratic drive toward fascist transformation takes the current democratic subversions is the extraordinary activation of the form, inevitably, of a negotiated convergence of Protestant­ Interaction Council, a Helmut Schmidt-linked body explic­ and Catholic-sponsored varieties of "corporatism," in which itly committed to malthusian "population reduction"of dark­ the nominally Catholic model for such fascist transformation er-skinned populations, and to Dollfuss-Mussolini-stylecor­ is the Austrian "corporatist" model of Dollfuss et al. Not porativist approaches, in the name of "democratic fascism," accidentally, the professedly Catholic fascists are the leading to a more rational sharing of sacrifices in incomes and free­ opponents of Populorum Progressio and of Joseph Cardinal doms. Ratzinger's November 1985 address to the "economists." For such ideological motives, social-democratic intelli­ The two, Protestant and Catholic adversaries of Cardinal gence operations are directed hysterically against generalized Ratzinger and Pope John Paul II, are united in a currenteffort technological progress, against resumption of high rates of to defend Adam Smith against the Vatican's denunciations average economic growth, and, most emphatically, against of the immorality of "economic liberalism," by means of any large-scale sharing of technological progress and eco­ purporting to show that there is an acceptable "bio-ethics" nomic growth with developing nations. In aid of this, they substitutefor morality in Smith's 1759-76 dogma of irration­ seek to befuddle the minds of patriots of developing nations, alist hedonism as the rule for political andpolitical-economic and others, by reasserting the old Fabian lie, that "technology behavior and policy-shaping. takes away jobs." This social-democratic fascism is threatened in an ob­ In short, modem fascism is "bankers' socialism," social­ vious way by any prospect for return to equitable allotment democratic fascism. This is the face of humanity'S most of thebenefits of significant rates of economic growth. Fas- influential enemy within Westerncivilization .

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There is no freedom without freedom to search for truth Ly ndon H. LaRouche, Jr. raises the alarm about the shutdown of private research crucial to d�eating AIDS, in a new statement about science policy in the U.S.A.

Today, except, chiefly, for the laboratories of the Switzer­ tervention. In science today, the continuing collapse of in­ land-centered international pharmaceutical giants, much of dependent farms and independent industrial entrepreneur­ the private biological research essential to defeating AIDS is ship, has concentrated the power to determine what research being shut down systematically and rapidly inside the United lives and dies, in the hands of a few powerful international States. financial cartels and governments . As the continuation of Unless unusually powerful institutions, or the U.S. gov­ private research depends more and more upon either govern­ ernment itself gives protecting sponsorship to such private ment funding or at least formal approval by governmental research programs, under present trends, most of the still agencies, a Washington bureaucrat can act arbitrarily, even existing smaller private research programs are presently without need of any legislated authority to do so, to order doomed. However, there is the added difficulty, that in the that research he dislikes be shut down. case that the government provides limited sponsorship for Although this report is focused upon the issue of scientific some existing programs , research work is regulated by either freedom, we can not discuss this matter competently without direct government censorship, or by the threat of cut-off of a glance at what is occurring inside leading political parties, sponsorship should laboratories report facts, or even follow both in the United States and in parts of Western Europe . In a line of scientific inquiry which incumbent governmental West Germany , in Britain, and in the U.S.A., among other bureaucratic authorities find displeasing. places, we are now headed rapidly into the kind of fascist Not only is some of the independent research of greatest form of government which existed in pre-Hitler Austria and importance to conquering AIDS suffering in this way. Some Mussolini's Italy , the so-called "corporate state ." This is not of the most important advanced work in physics is suffering an exaggeration in the slightest degree; I explain. in the same way. True scientific freedom is being quietly but The main political impetus for this revival of fascism systematically crushed out of existence in today 's U.S.A.; comes from both Willy Brandt's Socialist International , and the day is approaching, in which scientists are not permitted inside the U.S.A., from a force tightly integrated with that to speak the truth , because they are no longer permitted to Socialist International , the social-democratic machinery cen­ discover it. Many of the best laboratories are already on their tered around the League for Industrial Democracy and Lane last legs; only a government-approved, blinkered, and ho­ Kirkland's circles in the leadership of the AFL-CIO. This mogenized sort of research will exist if this trend is not halted. campaign came to the surface during 1974-76, with the So­ Scientific freedom is like freedom of the press; in both cialist forces' announcement of what they called "fascism cases, this freedom is limited to those who have the income with a human face," and with the Huntington report of the to maintain their institutions, and the political power to pre­ Trilateral Commission. The key facts are presented in EIR ' s vent that income from being destroyed by governmental in- Special Report on "Irangate ," "Project Democracy: The 'Par-

32 Science & Technology EIR May 1, 1987 allel Government' Behind the Iran-Contra Affair." There is now rapidly in progress, in West Germany, in Britain , and the United States , a process of fusing the leading parties of each nation into what is effectively a one-party state . The "super-Tuesday" primaries, now scheduled for 1988, are a step in this direction. Since January 1987, former West German Chancellor Helmut Schmidt, for example, has taken a leading role for establishing a coalition of the three great parties of that coun­ try into a new coalition government. In Britain , the same tendency is already evident, in the possibility that Britain's Conservative Party might be forced into a coalition govern­ ment with the trade-union-based successor to the collapsing Labour Party , the Social Democratic Party . Since 1982, with the establishment of the "Irangate"-centered National En­ dowment for Democracy (NED), the corporate arm behind Lt . Col . Oliver North 's Project Democracy accomplices, the leaderships of both Frank Fahrenkopf' s Republican Party and Kennedyite Paul Kirk's Democratic Party , is developing, step by step, the preparations for a one-party dictatorship here . I foresee no immediate prospect of actually dissolving the major parties of West Germany, Britain, and the U.S.A. into a single political party under a single party name. The public is not ready to accept so sudden and overt a develop­

ment. The immediate danger, is that the collaboration at the The author addressing a conference on AIDS in Italy, in Febru­ top between the two major parties of each country becomes ary 1987. so much integrated, through vehicles such as the social-dem­ ocratic National Endowment for Democracy, that the two major parties are effectively a national one-partydictatorship design of supersonic aircraft. The Italian combat biplane was at the top , while maintaining competing electoral machines perhaps the best fighter of its type at the time it was devel­ on the state and local levels . oped, on the basis of 1920s designs! During the war, Italy This trend toward such a thinly disguised form of one­ designed and produced one of the world's best fighters , but party dictatorship is key to understanding the way in which produced a total of about 35 of them! In other aircraftdesig ns, independent scientific research is being strangled to death for combat and other purposeS, Italy produced some of the inside the U.S.A. best in the world, but usually about one such operational I have had the opportunity to study rather closely the prototype ! conditions of research under Mussolini's fascist regime. The . Italy was unable to design suitable engines for its aircraft. horror stories I have learned from the mouths and documents It relied on German engine designs, because Italy lacked the of some prominent Italian scientists who worked during Mus­ relevant investinent in metaHurgy and so forth , to develop solini's regime are all the more horrifying, because they are needed engine-designs. Mussolini was a first-rankfaker, per­ an echo of what is happening to scientific research in the sonally . Having only 15 fighter-planes of a certain modern United States today . design, he would have these 15 flyfrom base to base, ahead For example, during World War II , Britain's Spitfires of the visiting foreign and oilierparties to whom he exhibited and Hurricanes used to use the Italian air force for turkey­ his powerful , modern air force. shoots . The basic Italian fighter plane was a biplane armed Fascist Italy inherited from the mid- 1 9th century circles with two synchronized machine-guns, firing through the of Cavour one of the world's greatest scientificpotentials in plane's single propeller. Italy's airframe designs ofthe 1920s electronics, hydrodynamics; and aerodynamics. Some of it­ and 1930s were the best in the world, as typifiedby a famous aly's economic and military' circles fought hard to maintain early 1930s seaplane , the fastest propeller aircraft ever flown the bare existence of this inherited potential , and a significant to the present day , and built around the most sophisticated sampling of this scientific capability survived under the power-plant design ever flownfor a piston-powered propeller somewhat reluctant, penny-pinching patronage of the fascist aircraft. Italy was the firstnation to produce, during the mid- state , much as Adolf Hitler despised and cut back Peene­ 1930s a supersonic wind-tunnel, and to work on problems of miinde until defeats of 1942 and 1943 prompted the fascist

EIR May 1, 1987 Science & Technology 33 dictator to scrape around for so-called "wonder weapons." pendentresear ch, limiting it to the internalresearch programs The social-democracy, together with its coalitions of the of a few international financialcartels plus government-con­ National Endowment for Democracy type, have the same trolled research. University research would be cut back es­ policytoward economic development and scientific research sentially to that backed by government or major financial today , as Italy had under the Mussolini from which the social­ cartels. Second , in the name of budgetary cut-backs, cut back democracy today copies much of its "neo-corporatist" fas­ on government-approved research programs. Then, we have cism. The direction in research policyof practice in the United conditions like those in Mussolini' s fascist Italy, or even States today, is shifting rapidly toward the kinds of conditions worse. characteristic of 1930s Italy. The foreseeable direction is this. First, cut back on inde- AIDS, for example Under those conditions, a cure for AIDS could never be expected in the West; if that were the case, sometime during the first half of the next century , the United States could be among the nations which had vanished from the map , as biologically extinct. My associates and I have been coordinating international research activities around AIDS since early 1985, bringing together experts from various relevant scientific specialties, accelerating the international transmission of relevant infor­ mation among some of the world's leading specialists, and convening conferences and seminars around the presenta­ tions and round-table discussions among such specialists. Consequently, my associates and I have been one or two Tuthill's Astro Video years ahead of most government-backed statements on the Instructional Tapes nature and transmission of AIDS . For example, much of what First in a series of detailed astronomical instruc­ my associates and I warned during the period from spring tional video tapes by this noted advanced ama­ 1985 through November 1986, is presently being reluctantly teur astronomer with 28 years of experience. admitted to be true by a growing number of governmental These are detailed, easily understood video tapes and other authoritative institutions. which te ll you how to get the most out of your The nature of, and cure for AIDS could not be discovered, scope so that the hobby gives you less hassle and except almost accidentally, without intensive and massive more fu n. The perfect gift fo r your resident astron­ omer. Designed for your home VCR, they show research into what is called the "non-linear spectroscopy of the beginner, as well as the more advanced ama­ the mitotic process." 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Get both causing the tissue to return to an uninfected state . for only $80 and Save $18. Both tapes FREE with The AIDS-infection process has some analogies to viral each SCT scope we sell! cancer, but AIDS functions in a way directly opposite to the These video tapes may also be rented for as low as $19 each. behavior of the cancer process. Human AIDS is a new kind of disease-problem, and demands a new kind of solution, and Send a large (9" x 12" 3 oz.) MANILA Self-Addressed Stamped En­ velope for our complete information Kit including "Tuthill's Twenty-Two a correspondingly new kind of understanding of the mitotic Telescope Tips' and the ·Special Tuthill Maintenance Instructions for scopes and information on the NEW STAR TRAP POWER MODULE process. #1 for other scopes." This needed understanding of the mitotic process and TOLL-FREE 1-800-223-1063 related biological events, can not be accomplished through Telephone: (201 ) 232-1786 medical research. 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34 Science & Technology EIR May 1, 1987 practice, as narrowly defined, knows little more than the ments were steered into forming the activist hard core of the pathologist reports from the autopsies of deceased AIDS left-liberal anti-nuclear, anti-technology movements . During carriers . the 1977-81 period , as marked by the role of James R. Schles­ Investigation of the mitotic process demands research inger in that administration, the anti-energy , anti-technology instruments which can detect, record , and process informa­ policies of the so-called "neo-malthusian environmentalists" tion respecting such events as the emission of a single quan­ were consolidated as the policy of the United States' federal tum-pulse of some frequency of ultraviolet emission from a and many local governments . DNA molecule in certain of its modes. It must trace the way The gutting of U.S. biological research began during the in which various such small electromagnetic emissions, over 1969-72 period, through National Security Adviser Henry an entire range inclusive of relevant frequencies, are assimi­ A. Kissinger's role in the negotiation of the Soviet anti­ lated or generated by various components of the mitotic pro­ biological-warfare agreements. Since the "biological agents" cess, and in the state of cells prior to , during, and fo llowing component of biological warfare are by-products of the same the events presently associated with mitosis as narrowly de­ research required to develop better defenses of the public fined. against new and old types of infectious diseases, the imple­ Prototypes of such instruments exist. New work, to de­ mentation of this U.S. agreement with Moscow meant that velop such kinds of instruments in ways needed, is on the Moscow, as usual , stepped up its work in developing biolog­ drawing boards, but funding is essentially cut off by the ical-warfare agents, while the U.S. cut back drastically, not bureaucracy. Meanwhile , the most promising laboratory re­ only on study of biological agents of warfare (and counter­ search work, in Italy , Germany , France, and the United States measures against newly developed Soviet agents of this kind) , hangs by a fragile thread. In the United States, these are but also cut deeply into the..re&earch needed simply for civil­ precisely the lines of independent research now being cut ian populations' defenseist new and old varieties of back most savagely. epidemic diseases. Thus.;,cQ,tbacks hurt us badly as soon as The specific attacks on independent AIDS and related the AIDS pandemic presented urgent needs for accelerated kinds of research are coming from two sources, governments biological research. and the homosexual AIDS lobby organizations typified by The developments of this kind, over the 1970s and early the late Terry Dolan's "conservative" NCPAC lobby, includ­ 1980s, coincided with effects of lowered real incomes of ing the AIDS lobby operating through the officeof New York independent farmers , industrial corporations, and persons in State Attorney General Robert Abrams. Governments argue, the U.S. and Western Europe . Reduced incomes meant Cl,lt­ as U.S. Surgeon General C. Everett Koop has repeatedly, ting back on normal levels of spending for maintenance, and that the necessary public health and other measures required cutbacks in most research programs. The lack of tax-incen­ for halting the spread of AIDs are "cost-prohibitive," and that tives to promote private research and development, and lack . therefore governments must lie about AIDS , to prevent the of credit at reasonable borrowing-costs for this purpose, en­ public from being "panicked" into demanding the necessary , sured such cutbacks. Also, trends in legislation and court costly actions. The homosexual and pro-drug lobbies argue, decisions make all research and development an increasingly that allowing the truth about AIDS to be known , would result risky venture . in measures which cut back severely upon the influence of The actions of governmentand others , to wipe out whole homosexuals and drug-users in government and other insti­ sectors of biological research, just at the time the AIDS crisis tutions. Therefore , these combined interests are lying their makes this research desperately urgent, is to be seen, at least heads off about AIDS , and are moving in to cut back on any in large part; as a reflection of a continuing anti-science and independent research, whose reportsare not under censorship anti-technology trend since about 1967 . by government, to prevent the truth from leaking out through independently authoritative researchers. Relationship to freedom in general The hysterical effortsof governmentsand certain lobbies, A culture which is oriented to scientificand technological to suppress presentation ofevidence on the true nature ofthe progress is a rational cultJlt:�� Such a culture is devoted to AIDS pandemic , and of means to check the spread of that discovering God's lawful. ordering of nature and living pro­ infection, are to be seen as an extension of the earlier policy­ cesses, and to making decisions consistent with those discov­ influence of the malthusian and countercultural lobbies on eries. This pro-science cultural outlook, encourages mem­ governments ' policy-making. bers of that society to view all persons as equal under God's Although the beginnings of the present-day malthusian universal justice, and prompts us to recognize that man-made and countercultural movements were established during ear­ constitutions, legislative acts , and decisions by judges, are lier periods, these influences began to take over the policies of inferior authority relative to a rational comprehension of of the governments of the United States and other nations , God's natural law . beginning the 1963-66 period , an influence which accelerat­ The notion that the nation is obliged to promote the gen­ ed at a rapid pace as the relics of the 1960s anti-war move- eral welfare for all sections of the population and their pos-

EIR May 1, 1987 Science & Technology 35 terities in a rational way, consistent with God's law, and that that biting and kissing might prove to be more likely modes no man or woman must be judged in legal or related actions of transmission than normal sexual intercourse ! except in a rational way consistent with our best knowledge In the instance of most of the popularized .assertions by of God's law. This is the foundation of a durable system of the AIDS lobby and governmental agencies, assertions about political freedom in general . AIDS are based chiefly on mere assertions of fact, without When that standpoint is rejected, in favor of an anti­ any supporting evidence from biological research. Indeed, scientific "back to nature" policy, such as the Nazis' "back generally, governments do not organize any of the often to nature" cult-dogmas , irrationality prevails, and justice must elementary biological research studies which would show, soon vanish, as it did under the Nazis. The arbitrary will of more or less conclusively, what the true facts of these matters any merely momentary , irrationalist majority , or a powerful are . Governmentref uses to back research which would settle such minority , replaces rational conceptions of law and per­ such questions, and then insists, like the person asking clem­ sonal political freedom. Since opinion is no longer subjected ency, as an orphan, when accused of murdering his parents, to scientific standards of proof, any opinion becomes law, that there is no scientific evidence existing to refute the gov­ simply because it is the momentarily chosen opinion of a ernment's bald, unsupported assertion ! majority or of a powerful minority . In a rational society, truth is not forced to the surface by For example, the AIDS lobby today insists, first, that . mere debating of opinions. Truth is established by rigorous AIDS is a venereal disease, spread either by sex or by direct scientific investigation, a truth which may be different than transmission of contaminated blood. So, official doctrine any of the popular or official opinions offered. Thus, science applies to AIDS the same classification , "casual contact," may show that the judgment of a handful of persons is nearest which public health law earlier reserved for use only in the to the truth , and all contrary , popular and official, opinion case of venereal diseases (e.g., the so-called "one-night factually absurd . It is the right of the individual to stand up stand .") Medical science and biological research show that for truth , even alone, and to be judged by scientific truth, AIDS is not a venereal disease, but a blood disease carried in rather than prevailing opinion, which is the bed-rock of the variouskinds of human secretions, including tears and saliva. principle of individual political freedom. Indeed, so far, the concentration of AIDS virus in saliva, We have seen, often enough, in the past, how a radical among AIDS carriers, is far greater than in semen, indicating democracy leads inevitably to the most tyrannical forms of dictatorship. The famous case of the Trial of Socrates is the model example of this. The case of the French lacobins is a more recent famous example. Neither true individual free­ dom , nor a commitment to rigorous scientificinquir y , can be durable, unless each exist to support the other reciprocally. We have come into a time, in our nation's history , in which the irrational , merely "felt" opinion of a liberal-radical pressure group has enjoyed the authority of a legal fact, even in the most outrageous opposition to readily verifiable sci­ entificfa ct. This tyranny of irrational , merely "felt" opinion, is destroying our society, and threatens, at least, to bring our nation to biological extinction, in the instance of the AIDS pandemic. In these respects, the interdependency of scientific free­ dom and individual political freedom is vastly greater than the connection to so-called freedom of the press. Any exten­ sive cutback on independent scientific research, portends a society which is turning its back on scientific freedom , and thus also individual freedom, and is thus a society on its way to becoming the kind of tyranny which the social-democrats' fascist impulses toward "neo-corporatism" are pushing Western civilization to become. This same connection functions in a complementary way . The material well-being, and life-expectancies of persons generally, depends absolutely on scientificand technological progress. If we tum away from the course of fostering of Henry A. Kissinger's role in negotiating anti-biological warfa re agreements with the Soviets in the 1969-72 period, began the technological progress in employment for the production of gutting of U.S. biological research . physical goods, the real incomes of society must fall after a

36 Science & Technology EIR May 1, 1987 A fa ther and son study an ad­ vanced helicopter at an airshow in Virginia , 1986 . A culture which is oriented to scientific and technological progress is a rational culture. relatively short span of a decade or more . This was what nations, much larger than today' s U. S. defense expenditure . caused the fall of Rome, and also the fall of Byzantium after Unless we intend to put AIDS carriers in death-camp-like it. Both empires, and others as well, fe ll because the levels hospices, or allow physicians and nurses to "terminate" them of populations fe ll under what we must regard retrospec­ with cost-saving lethal injections, the costs of quarantining tively, today, as malthusian policies of practice. infected persons in a manner consistent with our moral stan­ The effect of the fall of rates of real incomes, and of dards of care for the ill, and treating their sicknesses as best technologically progressive modes of investment in employ­ we may be able to do so, will require many tens of billions of ment for production of physical goods, has brought about 1987 dollars annually, at some point during the 1990s. Those increasing rates of austerity in most of the world. The argu­ are our alternatives. There are no others , unless we are pre­ ment of the pro-fascist leaders among social-democrats to­ pared to let the United States vanish from the map by biolog­ day , is that a form of corporatism modeled upon the 1920s- ical extinction. 30s models of fascist Austria and fascist Italy, must be estab­ To meet those and other urgent needs, we must increase lished as a mechanism for inducing populations to adopt, our productivity by very large amounts. This can not be done democratically, the forms of cuts in living-standards and without high rates of investment of advanced technologies in political freedoms "made necessary" by the progress of a workplaces, and the needed technological progress will not "post-industrial society." Minus the term "post-industrial so­ be available-nor will a cure for AIDS-without greatly ciety," this was the same argument used by the fascists of expanded scientific research. Austria, Italy, and Germany, during the 1920s and 1930s. Political freedom requires that the needs of the popula­ Science, AIDS, economy, tions be met. If existing production is not sufficient to do and individual freedom this, scientific progress, in the form of technological ad­ Although many scientists and engineering-trained pro­ vances, will increase the quality and quantity of the produc­ duction managers have a good rule-of-thumb understanding tive powers of labor to produce sufficient amounts. of the functional relationship between scientificresearch and Today , at present rates of spread of the AIDS infection, technological progress, this connection is unknown in the even if reasonable public-health standards are belatedly im­ vocabulary of most among today's leading economists, as plemented, and even if biological research is expanded to well as economics ideologues generally. produce a cure within about ten years, the cost of AIDS may Working backward from industrial production, new tech­ run as high as 20% of gross national incomes of industrialized nologies are transmitted to production chiefly through im-

EIR May 1, 1987 Science & Technology 37 proved machine-tools and similar kinds of capital goods . communications and direct collaboration with co-workers , These improved machine-tools are developed in an imitation the hypotheses which led to scientific progress, are , in each of the way the research scientist works with his instrument­ case, either the work of an individual mind, or close inter­ builders to construct an experimental apparatus. Working action among a few scientifi� collaborators . Similarly, the forward , from scientificresear ch, the rapid transfer of know 1- effective machine-tool-builder's shop is either a small enter­ edge from successful work with such experimental appara­ prise, or an element within a large enterprise, to which ele­ tus, to the new designs of the machine-tool builders , is the ment prudent corporate managements afford a very wide chief pathway through which scientific progress becomes latitude of decentralized, independent decision-making on general technological progress. development of new product lines. In both cases, it is the Generally, effective scientific work is highly individual­ independence of the individu�l or small group of specialists istic . No matter how much a scientist depends upon scientific which promotes the highest average rate of effective de vel-

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38 Science & Technology EIR May 1, 1987 opment. Bureaucratic overview, and related sorts of over­ search. Let us preserve, foster, and defend them. Let us work reaching pre-judgment of innovative work, usually result in to cause such institutions to proliferate . Let men and women a minimum of genuine, effective innovation. of conscience do so, not only for the sake of science, but also Scientific work may be fairly described philosophically, for the sake of political freedom itself. If such a change in as the interaction between freedom and necessity. Necessity directionis not forced through quickly, we shall begin to lose is a matter of scientific method, combined with knowledge scientific progress, and political freedom as well. As AIDS of the lawful ordering of the universe up to that point. True portends , we could lose not only these most valuable things, individual freedom in science, is expressed by innovations but virtually everything. which tend to overturnpreviously established opinions about AIDS is going to become one of the major growth indus­ necessity, but are innovations which prove to be consistent tries of the coming decade , and forms of biological research with a broader grasp of what is lawfully necessary in God's related to mastering all that pertains to AIDS and its prospec­ universe. In other words, what science believes at any point tive cure is essential . Current estimates are that the AIDS is imperfect, although at that time nothing less imperfect than infection doubles its number of victims approximately each present science might be known. The object of research is to eight to twelve months, perhaps faster. New mutations of the render science's knowledge for practice less imperfect, by infection are appearing. There is absolutely no time to waste . noting something outside the present limits of knowledge In this connection, as I have indicated, the spectroscopy which leads us to a less-imperfect comprehension of what the of the process of mitosis exemplifies the new directions of laws of the universe define as necessary . biological research without which the prospect of a cure may Bureaucracy overemphasizes old habituated ideas of ne­ be virtually non-existent. These branches of research, in ad­ cessity, usually on the level of the lowest common denomi­ dition to their invaluable contribution to the fight against nator of bureaucratic opinion about science. Bureaucracy and AIDS, have seemingly limitless benefits to offer in many science are incompatibles; the former stiflesthe freedomon other ways. Letus begin our war to save science and freedom which the existence of the latter depends. at this immediate rallying point, and then, so rallied, to un­ Therefore , let all men of conscience rally to the cause of dertakeother urgent, related causes, as our capabilities per­ those often small, independent institutions of scientific re- mit.

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EIR May 1, 1987 Science & Technology 39 LaRouche views capitalism's fu ture after the 1987 crash

After Vice-President George Bush and fonnerPresident Jim­ proposals might be the only ones capable of stopping the my Carter, Democrat Lyndon H. LaRouche, Jr. is today the collapse now in progress. Others, especially in New York best known name internationally among leading candidates City and Boston, are demanding, hysterically, that LaRouche for the 1988 U.S. presidential nomination. be eliminated from the political scene immediately, lest the LaRouche's international recognition began with a Bonn worsening of the financial crisis should bring him into a press conference he held in April 1975, where he said that position of power. Meanwhile, Moscow has labelled him the "floating exchange-rate" monetary system was leading "Soviet enemy number one," lUld has repeatedly demanded the world in the direction of history's biggest financial col­ that Western governments act to eliminate his political exis­ lapse. He proposedthe establishment of a new, gold·reserve­ tence. based monetary system, as the only basis for promoting a Since 1985, he has been th� object of hatred by an inter­ durable worldwide growth in production and world trade. national homosexuals' lobby, for proposing a combination Since 1977, he has been made controversial by his ene­ of public-health and research programs, to stop the spread of mies, because of his exposure of financial institutions' com­ the AIDS pandemic. The homosexuals' lobby included AIDS­ plicity in laundering funds of the internationalnarcotics traf­ victim TerryDolan 's NCPAC faction of the U. S. Republican ficking: he was, curiously, charged by the drug-trafficker­ Party. The U.S. governmentjolnedthis attack on LaRouche, linked U.S. Anti-Defamation League (ADL) with being an on grounds that LaRouche's pCOposals were "cost-prohibi­ "anti-Semite," because of his attacks on well-known U.S. tive." Generally, about 90% of LaRouche's U.S. adversaries organized-crime figures' role in promoting this drug-traffick­ have recently been exposed as key figures in the "Irangate" ing. Since 1982, he has come under heavy attack for his role scandal. in designing and promoting the U.S. Strategic Defense Ini­ Among many so-called conservative ideologues, such as tiative (SOl) . Since 1985, he has been under massive attack the U.S. Heritage Foundation, LaRouche's economic re­ for his insistence on both emergency public-health measures fonnsare generally hated. "Free trade"ideologues denounce and massive research programs against the AIDS pandemic. his policies as variously "dirigistic" or "neo-mercantilist," Increasingly frequent, and often wild news-media attacks and tennhis proposals for refonnof developing-sector debts on LaRouche in the U.S.A., the Soviet Union, Western Eu­ as "left-wing." rope, and elsewhere, have made his among the more easily The U.S. presidential candidate is a specialist in the sci­ recognized U. S. names in world politicstoday . ence of "physical economy" established by Gottfried Leib­ Since the beginning of 1987, the rapid worsening of the nizr and is a follower of Alexander Hamilton, the Careys, international economic and financial crises , have pushed and Friedrich List in political-economy. So, "free trade" LaRouche to new prominence as a leading authority in eco­ ideologues in the footsteps of Adam Smith and Friedrich von nomics. Although few leading bankers have any liking for Hayek, rightly recognize LaRouche as a political opponent. LaRouche personally, growing numbers of them concede However, since LaRouche demolishedKeynesian Abba Ler­ that LaRouche's analysis is essentially correct , and that his ner in a major New York City debate during autumn 1971,

40 International EIR May 1, 1987 none of LaRouche's opponents among economists has been selves on the same kind of arguments made by David Hume willing to debate the Democratic candidate either on the and Adam Smith. Liberalism insists that morality, at least as public platform or in literary forums. Wild slanders and li­ Christian natural law defines morality, must be kept out of bels, conduited through gossip circles and the international political-economy, in favor of egoistical impulses rooted in news-media, have been used as substitutes for debating the hedonistic irrationalism. On this, the Vatican is completely actual issues involved. correct in identifying the principal causes of the cruelest modern injustices done in the name of 'liberal capitalism.' LaRouche's kind of 'capitalism' The only flaw in the Vatican's usual presentation of the point, In a recent interview, the candidate has responded to the is that the Vatican seems to have overlooked the fact that allegations that he is an "anti-capitalist." He said, "That modern 'liberal capitalism' of this sort is a direct outgrowth depends upon how you define the word 'capitalism. , .. He of that pre-capitalist, feudal rentier-finance system of usury explained his point in the following way. which the modern sovereign state never fully succeeded in "By my kind of 'capitalism,' I mean private entrepre­ overcoming. neurship among farmers , industrialists, and resellers. I mean "In fact, the American System of political-economy is what Treasury Secretary Alexander Hamilton first described essentially an outgrowth of the 1439 Council of Florence. in 1791 as 'the American System of political-economy.' I The new kind of modern, sovereign republic, imperfectly mean what Germany's Friedrich List described as a national outlined in Dante Alighieri's De Monarchia. and defined system of political-economy. more rigorously by Nicolaus of Cusa's Concordantia Cath­ "Others usually mean something different, such as the olica. is the origin of the modern national republic, and the doctrines of the British East India Company's economists, source of the impetus for replacing the system of serfdom beginning with Adam Smith's Wealth of Nations. The dif­ and feudal guilds with free and technologically progressive ference is, that we who adhere to the American System place entrepreneurship in farming and industry. the emphasis on technological progress in production of "Historically, we have such examples as Leonardo da physical goods, whereas today's 'free enterprise' ideologues Vinci's work at Florence and Milan, the establishment of the mean a kind of pre-capitalist rentier-financesystem of usury, first such modern political-economy in Louis Xl's France, a system at least as old as the Philistines, the system best and the influence of the circles of Erasmus of Rotterdam in known in feudal Europe as the Lombard system. introducing modernforms of state and political-economy to "The leading American economist, Henry C. Carey, was, 16th-century England. These and other developments broke I believe, the first to describe the 19th-century British econ­ the political and economic monopoly of power by the feudal omy as a 'mixed economy,' a combination of capitalist en­ interests, but those feudal interests have so far managed to trepreneurship in industry with carried-over feudal elements maintain great power, and to increase it since key develop­ of land-owning and rentier-finance, but with the rentier in­ ments during the 1870s. terest on top, economically and politically. With the legisla­ "From these points of modern origin, what became the tion of the U.S. Specie Resumption Act of the 1870s, the American System of political-economy was always governed U.S. economy shifted away from the American System of by very definite moral principles, directly contrary to 18th political-economy, toward adopting the British system of and 19thcentury British Liberalism. In fact, that was the mixed economy. So, by about the time of the 1878 Treaty of central issue in the American Warof Independence. Berlin, the economic power of the industrialized nations was "Hamilton's 1791 Report to the U.S. Congress, On the concentrated in the hands of the rentier interest. Subject of Manufactures. emphasizes this connection clearly "On this particular question, Lenin's famous Imperialism enough. The function and moral responsibility of the state in was a mixture of technical incompetenceand factitious fraud. political-economy, is to promote the increase of the general Lenin, like the Fabians, hated agro-industrial capitalism, and welfare of the whole population through technological prog­ sought to place the blame for most of the world's evils on the ressfostering increase of the physical productive powers of industrial entrepreneurs. So, both Lenin and the Fabians ar­ labor, as Leibniz had defined theprinciples of economy ear­ gued that late 19th and 20thcentury imperialism was a natural lier. Under the American System, the government must outgrowth of the evolution of industrial capitalism. In fact, maintain a monopoly on issuance of credit, must invest in if Lenin hadstudied history a bit better, and had been more improvements in .what we call today 'basic economic infra­ honest, he would have recognized that imperialism was con­ structure,' and must foster technological progress in trade sciously copied as a policy from studies of the Roman empire, and investments by private entrepreneurs, to foster increase and that the driving economic force inside imperialism is an of the productive powers of labor. The morality of political­ anti-entrepreneurial, rentier relic of pre-capitalist feudalism. economic practice is measured moreor less exactly in terms "The Vatican's usual criticism of the evils of 'liberal of these ways of promoting the general welfare of all mem­ capitalism' is morally correct, but may tend to suggest an bers of present and future generations. erroneous view of economic history. Certainly, British Lib­ "The Vatican would be right to argue, that the curse of eralism and its continental and U.S. co-thinkers base them- modern government is the degree to which the adoption of

ElK May 1, 1987 International 41 liberalism has banned such elementary yardsticks of morality industrial banking, and to keep the lid on frozen financial from the deliberations of political parties, courts , and legis­ assets, until the level of physical output in the economies can latures. generate sufficient surplus to permitthe rollover of the frozen "Look at the reality of the policies which had brought the financial assets. We have these three choices, and no other world to the brink of the biggest financialcollapse in history. choice but chaos beyond imagination. Look, for example, at the vanishing price-earnings ratios of "In other words, we have a choice between Leibniz, the equities of leading industrial corporations. Look at the Hamilton, and List, on the one side, and Adam Smith, vanishing ratio of export-earningsto the currentdebt-service Schacht, and von Hayek on the other. The first is the road to obligations of nations. Look at the accelerating collapse in securing political freedom; the second is the sure road to the the ratio of collapse of real incomes of governments, to pyr­ kinds of fascist or bolshevist forms of extremes of corpora­ ' amiding of governmental indebtedness. Look at the effects tivjst tyrannies which might make even Adolf Hitler blush." of this on the ratio of liabilities to reserves of financial insti­ tutions. We will be most fortunate if only 50% of the values 'Socialism versus capitalism' of leading common stocks internationally are wiped out by On the subject of "socialism versus capitalism," the can­ the end of the coming summer. , didate said the following. "Make a simple calculation. For each industrialized na­ "The political conflict between socialism and capitalism tion, compare the amount of physical product permember of must be seen on three rather distinctlevel s. the population as a whole, with both the stagnation in pro­ "First, if one man believes he is a socialist, and the other ductivity of industrial operatives, and the shrinking percent­ man believes he is a capitalist, and both believe that socialists ages of the labor-force employed as operatives in production and capitalists are adversaries, the two will tend to engage in of agricultural and industrial goods. Include the margins of a brawl, if for no other reason than that they choose to adopt growing obsolescence and outrightcollapse in such items of such labels for themselves. basic economic infrastructure, as shipping and ship-building, in railroads, in highways and bridges, in production and distribution of electrical energy supplies, in fresh-water and The practicaljact is that the system sanitary systems, in numbers of hospital beds available per capita, and in quality of education in schools. qfpo litical-economy associated "What has been happening to these figures over the past with Leibniz, Franklin, Hamilton, ten years? The amount of financial debt per capita has been and List, is the best system qf skyrocketing, while the amount of employment in production and infrastructure-building per capita, has been falling in economy yet devised, and the one nearly all categories in every nation. In other words, the which best promotes both the amount of nominal values in the financial sector has been general welfare and political growing like a tumor, while the margin of income from production of physical goods has been collapsing. So, we jreedom. have a classical sort of 'John Law' financial bubble on our hands, a bubble which has reached the bursting-point. "This is the result of a combination of monetarist and "Secondly, what is often called 'capitalism' today, 'post­ post-industrial policies, which have measured public happi­ industrial' rentier capitalism, is much closer to the Soviet ness in the size of the delusions of rentier interests' bookkee­ system than to the American System of entrepreneurship. pers , while ignoring the fact that all debts must finally be Both the rentier and Soviet systems are ruled by an oligarch­ paid out of physical production. ical class, the one associated with rentier 'nobilities' along "We have reached the point, that the so-called capitalist traditional Venetian lines, the other with a Byzantine-like world has three choices. The firstchoice of some hysterically ruling class, the Soviet Nomenklatura. Except for Soviet desperate rentier circles, is to keep the financialbubble grow­ technological progress motivated chieflyby military require­ ing a few more months or so, by inflationary methods like ments of world conquest, the Soviet state is an echo of the those which caused the 1923 Weimar inflation. The second famous socialist decrees of the Roman emperor Diocletian, choice of some rentier circles, is to copy the austerity mea­ and Soviet society today is becoming rapidly a copy of By­ sures which Hjalmar Schacht introduced in late Weimar Ger­ zantium under such clever tyrantsas Photius. many , and under Hitler. The third choice is my alternative, "The conflictsbetween the 'pro-malthusian' rentier inter­ to freeze all potentially salvageable financial assets, while ests and Soviet interests is more a matter of national and building up our economies by a return to Hamiltonian meth­ cultural conflicts, than any insurmountable problems of con­ ods. flicts in economic policies. Hence, there is a tendency for "My object is to freeze the growth of reorganized rentier accommodation and convergence with Soviet society, not assets, to return to Hamiltonian methods of agricultural and only among avowedly socialist currents of the West, but also

42 International EIR May 1, 1987 liberal currents of political parties generally. ''Thirdly, the injustices, both real and imagined, which aresuffered under what most believe to be a system of indus­ trial entrepreneurship, causes that entrepreneurship to be the target of hostility . So, as in the case of the mass-based social­ democracies of Western Europe , the name of 'socialist' has been adopted by many ordinary folk because socialist organ­ izations, or trade-unions linked to socialist parties are seen as the credible force available for negotiating with entrepre­ Homintern is under neurial and governmental forces. "Nonetheless, many of those who come to regard them­ spotlight in Britain selves as socialist or pro-socialist in this way , are governed by personal moral beliefs not inconsistent with those govern­ by Mark Burdman ing a Hamiltonian sort of entrepreneurship. Some of these may even regardthemselves as 'Marxists,' when they would abhor Marx if they really understood him clearly; they read According to a news item in the April 21 edition of the British into Marx that which they wish to see, and overlook what daily The Independent, British spy-thriller author John Le they do not wish to embrace. Carre, famous for his The Spy Who Came in from the Cold "If a man tells me he is an ostrich , I am not obliged to and other fictional accounts of spy-master "George Smiley," accept this as a fact, although I must not overlook the signif­ will be making his firsttrip to the Soviet Union in May 1987, icance of the fact that he appears to believe he is an ostrich. at the invitation of the Soviet writers' union. Informed rumor The same must be said of those who tell me either that they has it, notes The Independent's "Diary" columnist, that Le are 'socialists' or 'capitalists,' or who say, simply, that they Carrewill meet Raisa Gorbachova, head of the Soviet Culture are 'left-wingers' or 'right-wingers.' Foundation, and "apparently one of his most enthusiastic "For me , the practical fact is that the system of political­ readers ." economy associated with Leibniz, Franklin, Hamilton, and The tripcould not come at a more interesting time for Le List, is the best system of economy yet devised, and the one Carre. On April 19, explosive revelations were made in the which best promotes both the general welfare and political British press by espionage-affairs expert Chapman Pincher, freedom. I propose that we rescue it from today's financial claiming that the suspected real-life model for George Smi­ and economic catastrophe, for the sake of ourselves and our ley, Sir Maurice Oldfield, head ofBrita in's MI-6 intelligence descendants. Let us get to production for human needs , and service from 1973-78, had been a particularly degenerate to the fostering of technological progress, on which depends homosexual, and a potential security risk. Sir Maurice's ob­ our ability to meet the elementary needs of each nation, and session, claims Pincher, was what is referredto in Britain as of the human family as a whole. " rough trade": lower-class, down-and-out young males. "I propose we become less concerned with empty word­ One could only guess what Madame Gorbachova could play with the ambiguous and confusing appellation, 'capital­ or would tell Mr. Le Carre about such matters . But one thing ism,' and think simply of the promotion of progress in agro­ is certain. As already has emerged in the known cases of industrialentrepreneurship instead . Let us stop playing word­ British spies like Anthony Blunt and Guy Burgess, both games on the subject of capitalist 'chickens' and socialist members of the secretive "Cambridge Apostles" set, Soviet 'foxes,' and use instead te.ms which have a more sensible penetrationof British elites has. been greatly expedited, over and real physical meaning than these two so-often misused a period of decades, by the rampant homosexuality prevalent and almost meaningless ones. in leading British circles, by what one lover of Burgess has "Let us say that we are horrified by famine and other referredto as "a sort of gay intellectual freemasonry. " miseriesabounding in today's world, and that through proper And, in the "Age of AIDS ," such matters have become of British national security concern, way beyond just the forms of technological progressive entrepreneurship, and . governments absolutely committed to the general welfare , matter of espionage. we have the means at hand to remedy the evils about us. We don 't know if, or how , Madame Gorbachova would "I concede that it is not inaccurate to describe me as the want to comment on such matters . But, in Britain, it seems Soviet press has done, as an 'ideologue of late-capitalism. ' that some people want to clean up the British branch of "The However, I am disgusted by the widespread practice of using Homintern. " and repeating mere labels, in the usual thoughtless, gossipy way, as a substitute for knowing actually what one is talking 'Disgustingbehavior' about. Don't fuss too much about which silly label to put on Pincher's revelations about Sir Maurice Oldfield, are me. Simply understand, concret ely, how I see the present contained in a new book, soon to be released, entitled, Trai­ situation, and what I propose we do about it." tors: The Labyrinths of Treason. Introducing an analysis

EIR May I, 1987 International 43 piece by Pincher previewing the new book, the April 19 The cleaners, or the painters , the soldiers and the sailors. Men Mail on Sunday weekly commented that Oldfield was evi­ like this would agree to whatever was required because they dently involved in the "desperately seamy side of homosex­ were being paid. . . ." uality," obsessed with "rough trade ...rent boys and down­ But the Pincher revelations were not an isolated event by and-outs ." The revelations are all the more devastating be­ any means. As his story stirred up various hornets' nests in cause Oldfield, "unquestionably brilliant, ...has always Britain, other leaks in the British press shed light on "Hom­ been presented as the modem father figureof British intelli­ intern" activities: gence. And despite author John Le Carre 's denials, Sir Maur­ • The same day's Mail on 'sundayreported that Scotland ice was frequently described as the model for his famous Yard had broken up a large "gay escort" prostitution ring, fictional spymaster, George Smiley. . . . Now, he joins that which worked by supplying black male homosexuals to lead­ long list of homosexuals whose scandals have haunted the ing personalities. "Well-kno�n clients," the paper noted, intelligence community, involving men like Guy Burgess, include a list of "politicians, showbiz personalities, and busi­ Anthony Blunt, and others ." nessmen who will be interviewed in the next few weeks." Pincher himself then writes in The Mail on Sunday: This ring is believed to be the biggest discovered to date in Oldfield's "clearly compulsive homosexuality came to Europe, involving more than 120 male prostitutes, working official notice after the Yard assumed responsibility for his for an agency called BABE, which stands for "Black and protection in 1978. Detectives became worried by the num­ Beautiful Escorts ." berand types of men who frequently visited his flat. • "Childwatch," a British organization investigating "They included waiters ofvarious nationalities and young widespread homosexuality and child abuse in the Church of men who obviously had no connection with intelligence mat­ England, has made an appeal to meet with Archbishop Run­ ters . One was such a down-and-out that he was barred from cie, to discuss allegations thar some clergymen are sexually the property after creating various scenes. abusing children. Childwatch founder Mrs . Dianne Core has "Some of these men were followed and interviewed and compiled dossiers on 10 clergymen, and claims that the in­ turned out to be male prostitutes .... formation gathered by her group is "very disturbing, although "While alone in Oldfield's flat, a policebodygua rd found we believe it is only the tip of the iceberg . The clergy involved books and magazines on sexual perversions and photographs are in a position of trust and a lot of innocentyoung children (j1'nude young men .... are falling into the hands of these unscrupulous people." She has charged that some church leaders are attempting to "cover "His case highlighted the continuing danger of. having homosexuals in such sensitive positions. . . . up the scandal," which is linked to a "severe problem of "Precautions to prevent the accession of homosexuals to homosexuality in the Church. '! such sensitive positions have now been tightened. . . ." As of our going to print, primate Runcie had not given a Pincher's claims caused a giant brouhaha. Labour Party public response to Mrs . Core . Certain British sources believe member of parliament Ted Leadbitter, the man who had that the pro-Russian favorite of Queen Elizabeth II has per­ exposed Anthony Blunt as a Soviet agent, declared that an sonal reasons for not wanting a search under "the tip of the investigation should be carried out to determine if Oldfield's iceberg" on such matters . alleged "disgusting behavior" were true; ifso , Oldfield had • On April 22, the Daily Mail, under the banner head­ been "a disgrace to this country." Oldfieldbiographer Rich­ line, "Why do the upper classes dress their boys as girls?" ard Deacon and former colleages of Oldfield, however, displayed photos of Princess Diana and son Prince William, stormed in anger that Pincher's charges were a "load of rub­ wearing lookalike dresses, and other bizarre photos of young bish." male royals dressed up as girls � This practice, noted the Mail, The rampancy of homosexual perversion in British lead­ has transformed babies into "unisex objects: a 'child' was a ing circles in this century is notorious, however. One repre­ neuter, and little boys were drtssed exactly like their sisters, sentative book on the matter, Conspiracy of Silence: The as you can see from the picture ()fDiana's forebears, Lavinia, Secret Life of Anthony Blunt, authored by London Sunday Countess Spencer, with her little boy in a silly frock.... Times writers Barrie Penrose and Simon Freeman, and pub­ The English upper classes : are monumentally slow to lished in 1986, presents the story in some detail. Of "rough change ...." trade," practiced by Blunt, for example, the authors write, A warning-shot aimed at Buckingham Palace? After all, quoting former associates of the late Blunt: the Blunt case involved such a degenerate and traitorworking ". . . Working-class trade . That was what Anthony really as art historian for the Queen. :And, as the April 20 Times of enjoyed. Scruffy , dirty things. He liked sailors the best of London reminded its readers , theissue of homosexual behav­

all. . .. ' ior by higher-ups in Britain's secret services "was given clear ". . . .I know about the working-class men. For men of focus in 1982, when Commander Michael Trestrail, the Blunt's generation, that was the only way they were able to Queen's personal bodyguard, ·resigned after allegations that get satisfaction. These were not love affairs . The window- he had had a relationship with 'a male prostitute. "

44 International EIR May 1, 1987 In the last two weeks , nearly all of Manila's columnists­ spanning the entire political spectrum-have backed Puyat's stance against the Ongpin deal , and against the IMF austerity conditionalities upon which the deal is predicated. Puyat-who has also demanded that the government end its appeasement policy with the insurgent New People's Army Philippines rejects and launch a nation-building counterinsurgency program­ was hailed in the leftistMalaya for his stance against Ong­ Ongpin's IMF deal pin's deal. Heretofore , the fight against the banks had been left as an issue to be picked up by the National Democratic by Linda de Hoyos Front and Communist Party as an issue . The Malaya April 9 denounced Ongpin and Central Bank chief Jobo Fernandezas "agents of the IMF." Citing the July Philippines Finance Minister Jaime Ongpin was sent packing 26, 1986, EIR, Malaya called Ongpin a "straw man" for back to New York April 20 to renegotiate with the country's Charles Allen & Co ., the investment house of the Meyer creditors the seven-year $13 billion debt repayment package Lansky Dope , Inc. syndicate. Allen & Co. installed Ongpin Ongpin had brought home only three weeks before . The as president of Benguet Mining Co ., the Philippines' largest purpose of his trip, Ongpin claimed, was to win the banks' mining firm, from where he moved directly to the finance agreement for an interest rate 13116 over the London inter­ ministry . The ties to Allen & Co. still appear to hold; Allen bank offered rate (LIBOR), after Mexico and Argentina had will be the primary agency for Ongpin' s proposed Philippine "won" that rate . Ongpin had brought back only a 7/8 over Investment Notes (PINs), for debt-for-equity swaps. LIBOR rate . "It is not a question of money," Ongpin told the Even more dangerous to Aquino, the Grand Alliance Filipino nation. "There are a lot of principles involved." campaign is beginning a process of erosion into Aquino's This was the finance minister's claim. In reality, Ongpin own base, coalesced around her "Lakas ng Bansa" (People's was kicked back to New York by a rising tide of protest Power) slate . The Grand Alliance campaign is making par­ against the entire sell-out deal he and Central Bank chief Jose ticular headway in the labor movement. The Labor Federa­ Fernandez had worked out with the banks . The protest has tion of the Philippines has endorsed Puyat for Senator. On caused a significant political problem for President Corazon April 13, a meeting of all labor groups-including the May Aquino and the coterie at Malacanang Palace; the demand to 1st Movement, the Federation of Free Workers , and the Lak­ reject Ongpin' s deal is led by the opposition Grand Alliance as Ngmanggagawas, called upon the Aquino government to for Democracy, specifically its chairman, Vicente "Teng" repudiate the debt and halt import liberalization . The Ongpin Puyat. agreement with the banks, the unions' joint declaration stat­ In early April, Puyat demanded that the Philippines fol­ ed, has "disastrous consequences for the working man. Cred­ low the example of Brazil and Peru , and pay only that portion itors must also assume responsibility . . . . The government of the country's revenue it can afford without decimating the economic program is anti-Filipino and anti-worker." national economy . Puyat proposed debt service at $500 mil­ On the strength of hitting the reality of the economic crisis lion per annum, 20% of Ongpin's agreement that the Philip­ in the country, the Grand Alliance is gaining substantially in pines will hand over $2.6 billion a year-a full 45% of the polls. A month ago , the Alliance was assured 30% of the current export revenues. The savings of revenue, Puyat stat­ Senate seats . Now reports Jesus Bigornia in the Manila Bul­ ed, will be used to rebuild the economy and create productive letin April 18, "Government-commissioned political surveys jobs-after three years of International Monetary Fund aus­ indicate the election of a strong opposition sector in the re­ terity . Ongpin' s "high-falluting statements," Puyat charged, vived Senate. The rosiest of three studies on country-wide are meant to hide the fact "that he has surrendered national political trends showed the first 16 slots in the 'Winners' sovereignty . " circle' equally split between the pro-administration Lakas ng The fight against the banks and the IMF has become the Bansa coaliton bets and the candidates of the Grand Alli­ centerpiece of the Grand Alliance electoral campaign for the ance." In addition, one candidate from Marcos's KBL is new Philippines senate . Elections are May 11. Puyat, the expected to win a seat, with the remaining seven seats a toss­ Alliance's leader in the 24-man slate, has himself distributed up between the Alliance and the administration. "The pros­ 50,000 posters across the country that read: pect is not at all pleasing in the eyes of President Aquino." Ifthe opposition succeeds in winning the majority in the Senate, Aquino will find herself between a rock and a hard Wanted: Puyat for Senator place-a population mobilized behind the Alliance rejection Public Enemy #1 of the Banks and IMF of the banks and IMF, and her own family ties to the pro­ Reward: $28 Billion Returned to Our Country IMF oligarchy of the country .

EIR May 1, 1987 International 45 will gesture, Habash had announced the dissolution of the PNSF, hours before the holding of PNC.

The Arab strategy If there had been any doubts as to Moscow's clout in the region, the Syrian lack of reaction days before the PNC made the point. Assad's Syria, on the front line of the anti-Arafat Palestinian National campaigns, saw its Damascus-based Palestinian puppets leaving its capital, one after the other, without complaints. Council: Soviets win No doubt Assad's pride was hurt that the Soviet leadership had so abruptly shifted gears. However, he still has power over Lebanon, hence over its Palestinian camp . He could by ThienyLalevee also appreciate, that under Soviet advice, Libya's Qaddafi decided not to attend the PNC-as a gesture to Damascus. Heralded as a personal victory for PLO chainnan Yasser Assad was then summoned to Moscow on April 23. The Arafat , the Palestinian National Council which gathered in Soviet media heralded the convergences of views between Algiers beginning April 20, was a milestone in the Soviet the two countries, including on the need for an International drive to become the power-broker in the Middle Eastern Peace Conference. conflicts. It was a victory for Arafat , in that despite many Also intriguing has been the silence of Jordan's King assassination attempts sponsored by Syria's Hafez al Assad, Hussein who was one of the sticking-points between Arafat he is alive; and despite Assad's attempts to create an ersatz and his fonner enemies. Though Hussein had himself de­ PLO called the "Palestinian National Salvation Front"(PNSF), nounced the February 1986 agreement with the PLO last he remains PLO chainnan. But for the future of the Palestin­ year, Arafat had held back fromdoing likewise. Days before ian movement and peace in the region, the victorywas worse the PNC, he bowed to the radicals' demands, but this pro­ than pyrrhic, and Arafat's own political future is in doubt. voked no particular reaction m. Amman. King Hussein and To celebrate this show of Palestinian unity, wide-ranging Assad had consulted extensi�ly over recent weeks, and it concessions were made, in which Moscow alone called the was announced that less than I 10 days after Assad, Hussein shots. The brutality of Soviet blackmail was exerted behind will flywith half of his cabinet to Moscow. the scenes while the public side took a more diplomatic mien, A deliberate provocation from Arafat over the Polisario sponsored by Algeria and Libya's Muammar Qaddafi . Days "liberation" movement caused a Moroccan walkout from the before the congress, the PLO leadership was forced to hold PNC, and Morocco to announce the next day it was closing direct talks with international terrorist Abu Nidal. Though down the PLO office in Morocco. Only two weeks earlier, only a public meeting between PLO number-two man Abu King Hassan had reiterated his willingness to help mediate Jihad and Abu Nidal was acknowledged, Yasser Arafat him­ the conflictwith Israel. Clearly , the alliance heralded by the self met the man he had personally condemned to death 15 July 1986 summit in Morocco, around then Israeli Premier years ago, and who was responsible for executing all of Shimon Peres's idea of a MarShall Plan for the region, is one Arafat's associates in Europe . Bitter pro-Palestinian activists of Moscow's main targets. As the PNC met, violence rocked questioned the reconciliation between Arafat and the killer the West Bank, paralleled by two attempts of Fatah guerrillas of his associate Sartawi, who had worked for an Arab-Israeli to cross the Lebanese borders into Israel, and renewed rocket peace settlement: "Will it mean that Abu Nidal will only kill attacks against Israeli settlements. Palestinian moderates in the West Bank?" An immediate victim has been Shimon Peres, whose last Of course, Abu Nidal didn't attend the PNC; his presence two years of peace efforts were denounced by Israeli hardli­ would have totally discredited the PLO , and that's not Mos­ ners for having "weakened Israel." In a special cabinet meet­ cow's immediate aim. Moscow desires a Palestinian move­ ing on April 19, Defense MiI1ister Yitzhak Rabin forced the ment under its control, mobilizable at will, but credibleenough issue and got full powers to launch retaliation at will in for its propaganda in favor of an International Peace Confer­ Lebanon, against the Palestinians. ence. For the same reason, internationalterrorist Abul Abbas Rabin has at the same time welcomed the Syrian move to was also dismissed from the leadership. Through the election the Awali river around Sidon, as "expected and necessary" to the PLO Executive Committee of the Palestinian Com­ to control the Palestinian movement. Just as the U. S. State munist Party, despite its total lack of credentials because of Department is said to have thrt>wnits weight behind a Rabin­ its inactivity in the occupied territories, Moscow will have led coalition, Moscow is doing the same through Assad. Yet, its agents in place. This will complement the pressures ex­ Moscow's control over the Palestinian movement keeps them erted on Arafat by the presence of George Habash's PFLP both in check. Ultimately, each of the players will be played and Nayef Hawatmeh's PDFLP, the two founding organiza­ as a puppet one against the other to Moscow's benefit; that's tions of the Damascus-based PNSF. In an inexpensive good- the price that Arafat has paid to retain his nominal position.

46 International EIR May 1, 1987 ship. . . . They are [Argentina's] most dangerous men." Argentina Why all the hoopla? For the U.S. State Department, and the international banking community, the "danger" repre­ sented by the army rebels is not that they are fascist reaction­ aries; rather, their nationalism, and disgust with Alfonsin over his capitulation to the banks, and trampling on national Officers challenge sovereignty on issues such as the Malvinas, reflectsthe think­ ing of much of the popUlation. Colonel Rico has stated pri­ IMF democracy vately that he believes that Henry Kissinger's associate, for­ mer finance minister Jose Martinez de Hoz, should be tried for treason, for his role in overseeing both economic policy by CynthiaRush and military represssion between 1976-1981. In October 1983, 53% of the voting population elected On April 17, just a few days after the government of Argen­ Alfonsin on the belief that he would punish the representa­ tine President Raul Alfonsin signed a deal for $1.9 billion tives of the hated "Patria financiera," who quadrupled the with its international creditor banks, a group of nationalist country's foreign debt, and destroyed its industrial capabili­ army officers rebelled against the leadership of Army chief ties during the 1976-83 "Proceso." But, since Alfonsin has of staff, Gen. Hector Rios Erenu. Col. Aldo Rico, a hero of pursued exactly the same economic policy as Martinez de the 1982 Malvinas conflictwith Great Britain, traveled to the Hoz, exacerbating conditions for political and social upheav­ Campo de Mayo military base in Buenos Aires, took over the al, the population is increasingly reluctant to swallow rheto­ Army infantry school with a group of young, nationalist ric about "democracy." officers, and issued a series of demands to the army leader­ Middle-ranking army officers are enraged at the Presi­ ship regarding treatment of middle-ranking officers charged dent's conscious assault on the institution of the armed forces, with human rights violations during the late 1970s "dirty war in which their ranks have been prosecuted on charges of against subversion." violating human rights during the "war against subversion," The internationalpress immediately characterized the up­ while leaving the Martinez de Hoz crowd and its military rising as a coup attempt against Alfonsin and rushed to the allies largely unscathed. Colonel Rico and his troops de­ defense of the three-year-old Radical Party administration. manded that Alfonsin remove Gen. Rios Erenu from his post, From Santa Barbara, California, the White House issued a that a legal limit be placed on the trials of younger army statement calling on officersto "desist in their defiantattitude officers, and that a significant portion of the senior officer and abide by the law," adding that under Alfonsin, impres­ corps be passed into retirement. sive gains "have been made in the consolidation of democ­ On Easter Sunday, April 19, Alfonsin flew to Campo de racy and the economic development" of the country. The Mayo by helicopter to meet personally with Rico, and then State Department issued hourly bulletins glorifying Alfon­ returned to waiting crowds outside the presidential palace to sin's "democracy," as did U.S. television stations, and on announce that an agreement had been reached. The tone of April 19, Tass news agency happily reported that the attempt Alfonsin's Sunday speech was far less strident than that of to "set the stage for a military coup hatched by reactionary the previous Thursday, and with good reason. After three military has come to an inglorious end ...." years of accepting International Monetary Fund policy, and Alfonsin initially responded with a strident, nationally denigrating the armed forces, Alfonsin could negotiate only televised speech on April 17, warning that "our democracy from a position of weakness. He accepted every demand will not be negotiated," and calling on citizens to rally around made by Colonel Rico, quickly replacing Gen. Rios Erenu, his government. Over a three-day period, the international and passing ten generals into retirement. The national courts press filled its pages with pictures of Argentine citizens in the have postponed any further trials of military officers, pending streets, showing Alfonsin flanked by opposition Peronist Supreme Court debate on the issue of whether younger offi­ leaders who had reportedly gathered to defend his govern­ cers were operating on the basis of "due obedience" in car­ ment. rying out orders of their superiors during the 1970s. When the conflict was resolved on April 20, columnist Nor is the crisis over. Observers in Buenos Aires describe William Pfaff wrote in the April 23 edition of the New York the situation as "extremely tense." On April 21, an army Times, that "Argentines . . . energetically rejected the rebels engineering unit in the northern province of Salta, and an and went to the streets to support Alfonsin's govern­ infantry regiment in neighboring Tucuman, briefly rebelled ment. . . . [T]hese officers . . . are ultra-nationalist, they to protest the naming of the new chief of staff, Gen. Jose hate the left. They often make a quasi-mystical ideological Caridi, known to be associated with the discredited senior amalgam of Argentine nationalism with Christianity and anti­ officer corps. Caridi has indicated that he may soon retire as communism. . . . They believe that they are the scapegoat well, to be replaced by a younger general, more acceptable for the atrocities carried out under the military dictator- to middle-ranking officers.

EIR May 1, 1987 International 47 India's new education policy seen as 'a unique investment' by Susan Maitra

Within days of the landslide December 1984 election which All-India Survey of 1978-79, there are no schools at all. On gave Prime Minister Rajiv Gandhi a direct mandate , the the other end of the scale, serving less than 2% of the popu­ governmentof India announced that a new education policy lation on a mostly hereditary basis, are universities and other for the nation would be formulated. centers of higher learning which are of widely varying qual­ For the first time education was raised to cabinet status, ity. and is now incorporated in the new Ministry of Human Re­ � It is not that there has been no effort over the years, or sources Development. A national debate on educational re­ that the problem came up suddenly. There has been no lack form was launched in early 1985, and during the course of of forthright studies documenting the chaos and deplorable the year discussion continued among the general public as conditions in education, and the resultant terrific waste of well as educational professonals. To focus the debate the human potential . It is striking to note that the 1968 education education ministry produced a draft document, "The Chal­ policy directives, which are largely the basis for the new lenge of Education-A Policy Perspective," an analysis of policy, themselves echo many points made in the 1904 edu­ the state of education and the problems to be solved that cation review conducted by Lord Curzon for the British co­ pulled few punches. lonial regime. The colonialists had their own cynical motives In early 1986 the National Policy on Education (NPE) for sabotaging education in India, but even since indepen­ was submittedto the parliament, and following its acceptance dence-primarilyfor lack of toughpolitical leadership in the in May, a series of 23 task forces began work to hammer out face of admittedly awesome resource constraints and a host a plan of action for implementing the ambitious policy. Dur­ of problems from the colonial legacy-entreaties to remedy ing late 1986, the various action plans were submitted to the problem have been implemented only nominally. parliament, and state education ministers were mobilized to Whatever the cause, the result from every angle is now press ahead with implementation. recognized to be disastrous for the nation. There is no corre­ lation between the manpower requirements for a growing At the crossroads economy and the organizationl ofthe educational institutions. The new policy calls, on the one hand, for a sweeping Efforts to introduce vocatiortal education starting in 1976 overhaul of the existing educational setup from the standpoint have been singularly unsucq;!ssful, with poor quality and of a national standard of excellence, cultural values and de­ management of the programs reinforcing a perniciouscultur­ velopment of a work ethic. On the other, the policy projects al bias against the dignity of labor. Typically, there is in India a determined effort to extend quality education to the whole a surplus of engineers and managers and an absolute shortage population. In particular, the policy resolves that by 1990, of skilled production-line men and technicians. every child of 11 years will have had no less than 5 years of More fundamentally, the educational failure is a failure schooling, and by 1995, all children will be provided free to build the country's citizenry as a literate and informed and compulsory education up to 14 years of age. population, constantly absorbing and discovering new ideas, The policy initiative was motivated by urgency, as indi­ which is at the heart of the question of national identity. For cated in the NPE's introductory section (excerpts of which a country like India with a rich cultural, linguistic, and relig­ are reprinted here). In nearly 40 years since independence, ious diversity overlaid historically with a succession of im­ India has not come close to fulfilling the mandate of Article perial conquests, the issue beoomes all the more complex and 45 of the Directive Policy of the Constitution to provide free politically charged, but at the same time, essential to tackle and compulsory education for all children through the age of decisively. 14 by 1960. Today some 60% of India's population, or 450 All of these considerations motivated the launching of million individuals, remain illiterate. Nearly half of the so­ the NPE. called primary schools, mostly in the rural areas, lack even rudimentary facilities such as buildings, teachers, and teach­ 'Operation Blackboard' ing aids. Sixty percent lack drinking water. In some 200,000 Though the NPE is broad in its scope, there are several towns of 200 population or more, according to the Fourth elements of the package which, if carried through, can be

48 International EIR May 1, 1987 expected to have a decisive impact: the commitment to ele­ and national norms, and coherent institutional and adminis­ mentary education, the establishment of a pace-setting school trative framework rooted in the local communities and dis­ in every district of the country, a concentrated effort to insti­ tricts. The Central Advisory Board of Education , which in­ tutionalize vocational education, and the evolution of a gen­ cludes all of the state education ministers, is being upgraded uinely "national system" of education . to play a pivotal role in moving the strategy forward nation­ The most powerful aspects of the policy are reflected in ally. At the same time, District Boards of Education will be "Operation Blackboard," a phased drive for immediate im­ created to manage education up to the higher secondary level , provement of primary schools across the country. The aim is with direct accountability both to the local communities and to ensure provision of minimally essential facilities, starting to the state education office. An Institute of Education and with a school consisting of two reasonably large rooms that Training will also be established in each district to focus on are usable in all weather, blackboards and chalk, maps and training and in-service courses for elementary teachers and charts , toys and games, and other learning materials. Pro­ personnel working in the NFE and adult education programs. ceeding block by block and district by district, it is planned This and other measures for teacher training aim to sys­ to cover 20% of the schools by 1988. School construction tematically upgrade the quality and accountability of educa­ will have first claim on two of the larger government pro­ tion at every level . The establishment of an Indian Education grams for rural employment, and designs have already been Service as an all-India service will help to bring a national finalized for standard schools costing about $6,000 each to perspective to education administration and management. construct. The new thrust in elementary education will emphasize The resource challenge both universal enrollment and , as important, universal reten­ Whether the goals of the NPE will be reached at this tion of children in the schools up to 14 years of age, as well critical juncture depends on one thing: leadership . The chal­ as a substantial improvement in the quality of education. lenge is daunting, not the least because of a cumulative record Indian educational planners have acknowledged that the nice­ of failure to take decisive action, and the pernicious pressure ly climbing enrollment figures they have achieved in the past of the international malthusian lobby, whose influenceis seen mean nothing in the face of intractably high dropout rates in the NPE's clause stating that population growth must be that correlate , not surprisingly, with poverty levels. Of 100 brought down. Although in absolute terms the government children enrolled in Class I, it is estimated only 23 make it to expenditure on education has been consistently high and Class VIII. steadily increasing, it continues to fall far short of recom­ To actually achieve universal primary education, the NPE mended levels, not to speak of actual requirements. In this relies very heavily on extending various schemes for "non­ respect, education has been the victim of a planning process formal education" (NFE) initiated several years ago into a which ranked it "one among many" priorities. As a result, large and systematic program spanning the entire country . A education has consistently claimed 10-13% of the plan budg­ network of NFE centers , relying on the support of the vol­ et-second only to defense-just enough to qualify it as a untary agencies and local village governments, will be set up "going concern," but not enough to make the needed break­ for dropouts , working children , and girls who cannot attend through in establishing a viable national system. school for the whole day . Though a systematic evaluation of From about 1 .2% of national income in 1950, educational these schemes has yet to be made , in some projects the drop­ expenditure rose to about 3% of GNP in 1965 , and has been out rate has been reduced to 10%. stuck there ever since-recommendations from the 1966 Na­ At the secondary level the thrust is on improving the tional Education Commission that it should reach 6% by the educational stream leading to higher studies , on the one hand, 1980s notwithstanding. Moreover, 85-90% of the education and systematically introducing quality vocational and tech­ budget-and in some cases fully 98%-is eaten up by teach­ nical education, on the other. To broaden the base for higher ers ' salaries and salary admininstration alone ! education , and excellenece and creativity generally, a pro­ Even now, the NPE is locked into an education budget gram to set up one "model school" (Navodaya Vidyalaya) in for the Seventh Five Year Plan (1985-90) that was finalized each district of the nation by 1990 has been taken up. These before its adoption. The government has vowed thatthe Eighth schools will make quality education available to mostly rural Plan, beginning in 1991, educational spending will be dou­ children irrespective of their parents' ability to pay or their bled to the level of 6% of GNP. But for the next three years , social status. Education, including room and board, will be apart from furthering the considerable effort to mobilize and free , with admission based on a standardized aptitUde test orient the educational bureaucracy and mobilize the neces­ geared to account for diversities in language, and lack of sary political push behind the program at all levels, with the formal training and other idiosyncracies of status and geog­ exception of the model schools program, implementation of raphy in otherwise giftedchildren . the NPE will rely on doing what can be done with existing The basic commitment of the NPE is to evolve in a delib­ funds and ad hoc efforts at supplementary fundraising. Al­ erate fashion a "national system of education," with a com­ ready , the 1987-88 budget has come up with an additional mon educational structure , a national curricular framework $50 million for education, more than 20% of which will go

EIR May 1, 1987 International 49 to elementary education and "Operation Blackboard" in par­ and accepted by consensus over the years as a solution to this ticular. problem, has yet to be really implemented on a nationwide An international comparison of educational investment basis. In this formula, education up to Class IV is strictly in on a per capita basis puts the magnitude of the challenge to the vernacular. In Class V, in addition to the mother-tongue, India's leaders in the most dramatic light. The Indian edu­ either Hindi or English is introduced. Thereafter, both Hindi cation budget rose from 3.2 rupees per capita in 1950, to 12.1 and English are required, and, in Hindi-speaking areas, an­ rupees per capita by 1965-about 1I100th that spent in, for other modem Indian language, for instance, the southern instance, the United States. But then India's school-age pop­ Tamil language, is to be added. Any two of the three lan­ ulation at any given time is about the size of the total Amer­ guages must be carried through to the 12th Class. ican population! In 1989-90, according to the Planning Com­ mission's Expert Committee on Population Projections, In­ dia's elementary school-age population will be more than 100 million-nearly twice the total population of most of the European nations! The cost of schoolhouses alone is a for­ Documentation midable figure. The resource constraintitself poses a political challenge quite apart from the need, recognized in the NPE, to elicit mass demand for, and participation in, making the new edu­ 'National Policy cation plan work. The predicament of Indian education is bound up with the problems in the economy and the lack of sufficient economic surplus generation; at the same time, it on Education' is one ofthe keys tounlocking the country's economic poten­ tial. Following are Parts I and II of the National Policy on Other hurdles Education, 1986 approved bythe Parliament of India in May In the first place, education is largely the responsibility 1986. of the various state governments, which have over the years jealously guarded their plums and prerogatives in this area. Introductory In a developing country where cash is always short, politics Education has continued to evolve, diversify, and extend is one of the more lucrative professions, and everything­ its reach and coverage since the dawn of human history. including education-is highly politicized. Since in India Every country develops its system of education to express the states are generallylanguage-based, and in a broad sense and promote its unique socio-cultural identity and also to culture-based, establishing a truly national educationsystem meet the challenges of the times. There are moments in his­ is a qualitatively more complex proposition. In 1976, the tory when a new direction has to be given to an age-old parliament took a bold and controversial decision to place process. That moment is today. education on the "concurrent list," making it a matter of both The country has reached a stage in its economic and state and centralgovernment responsibility . technical development when a major effort must be made to Besides the sheer magnitude of the numbers, the resource derive the maximum benefitfrom the assets already created constraints and political-administrative challenges, the lin­ and to ensure that the fruits of change reach all sections. guistic and cultural-religious diversity of India introduces a Education is the highway to that goal. range of highly charged conundrums into educational policy­ With this aim in view. the Government of India an­ making that would make any professional educator shudder. nounced in January 1985 that a new Education Policy would One of the most serious and intractable problems, for in­ be formulated for the country. A comprehensive appraisal of stance, has been the issue of themedium of instruction at the the existing educational scenewas made, followed by a coun­ various levels of schooling. Should it be the local or vernac­ trywide debate. The views and suggestions received from ular language?-there are 15 modem languages in India with different quarters were carefully studied. fully developed literatures recognized in the Constitution, and more than 1,500 dialects. Should it be Hindi?-a lan­ The 1968 education policy and after guage of theprimarily northernma jority population, declared The National Policy of 1968 marked a significant step in in 1947 to be the nation's "official" language, but which is the history of educaton in post-Independence India. It aimed rejected outright in the south. Or, should it be English, the to promoted national progress, a sense of common citizen­ language imposed by the colonial rulers to, in Lord Macau­ ship and culture, and to strengthen national integration. It lay's words, create a class of individuals Indian in appearance laid stress on the need for a radical reconstruction of the but English in tastes, opinions, and values? education system, to improve its quality at all stages, and The so-called three-language formula, devised in 1956 gave much greater attention to science and technology, the

50 International EIR May 1, 1987 cultivation of moral values, and a closer relation between people to benefit in the new environment will require new education and the life of the people. designs of human resource development. The coming gen­ Since the adoption of the 1968 Policy, there has been erations should have the ability to internalise new ideas con­ considerable expansion in educational facilities all over the stantly and creatively. They have to be imbued with a strong country at all levels. More than 90% of the country's rural commitment to humane values and to social justice. All this habitations now have school facilities within a radius of one implies better education. kilometer. There has been sizeable augmentation of facilities Besides, a variety of new challenges and social needs at other stages also. make it imperative for the Government to formulate and Perhaps the most notable development has been the ac­ implement a new Education Policy for the country. Nothing ceptance of a common structure of education throughout the shortof this will meet the situation. country and the introduction of the 10 + 2 + 3 + system by most States. In the school curricula, in addition to laying The essence and role of education down a common scheme of studies for boys and girls, science In our national perception, education is essentially for and mathematics were incorporated as compulsory subjects all. This is fundamental to our all-round development, ma­ and work experience assigned a place of importance. terial and spiritual. A beginning was also made in restructuring of courses at Education has an acculturating role. It refines sensitivities the undergraduate level. Centres of Advanced Studies were and perceptions that contribute to national cohesion, a sci­ set up for post-graduate education and research. And we have entific temper and independence of mind and spirit-thus been able to meet our requirements of educated manpower. furtheringthe goals of socialism, secularism, and democracy While these achievements are impressive by themselves, enshrined in our Constitution. the general formulations incorporated in the 1968 Policy did Education develops manpower for different levels of the not, however, get translated into a detailed strategy of imple­ economy. It is also the substrate on which research and de­ mentation , accompanied by the assignment of specific re­ velopment flourish, being the ultimate guarantee of national sponsibilities and financial and organisational support. As a self-reliance. result, problems of access, quality, quantity, utility, and In sum, Education is a unique investment in the present financial outlay, accumulated over the years, have now as­ and the future . This cardinal principle is the key to the Na­ sumed such massive proportions that they must be tackled tional Policy on Education. with the utmost urgency. Education in India stands at the crossroads today . Neither normal linear expansion nor the existing pace and nature of improvement can meet the needs of the situation. IDDLE EAS� In the Indian way of thinking, a human being is a positive asset and a precious national resource which needs to be INSIDER cherished, nurtured, and developed with tendernessand care, We ekly Confidential Newsletter coupled with dynamism. Each individual's growth presents a different range of problems and requirements, at every stage-from the womb to the tomb. The catalytic action of Executive Intelligence Review has been the authority on Mid· die East affairs for a decade. In 1 978, EIR presented a coherent Education in this complex and dynamic growth process needs profile of the "Islamic fundamentalist" phenomenon. EIR had to be planned meticulously and executed with great sensitiv­ the inside story of the Irangate scandal before anyone else: In 1980, exposed the late Cyrus Hashemi as the Iranian ity. EIR intelligence man in Washington, organizing arms deals and India's political and social life is passing through a phase terror. which poses the danger of erosion to long-accepted values. Middle East Insider. created in November 1986. brings you:

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The rural areas, with poor infrastructure and social ser­ • confidential reports from inside the Middle East vices, will not get the benefit of trained and educated youth, and North Africa that no one else dares to publish unless rural-urban disparities are reduced and determined • accuracy on the latest terror actions and terrorist measures are taken to promote diversification and dispersal groups of employment opportunities. A subscription also includes a "hot line," where you can call The growth of our population needs to be brought down for more information on any item we publish. significantly over the coming decades. The largest single Take out a three·month trial subscription for 1000·DM, and receive one of our recently published special reports as a gift. factor that could help achieve this is the spread of literacy Yearly subscription at 5000·DM. (Distributed only by European and education among women. office.) Write or call: Middle East Insider c/o EIR Dotzheimerstr. Life in the coming decades is likely to bring new tensions 166. P.O. Box 2308. 62 Wiesbaden F.R.G. Tel: (61 21) 88 40. together with unprecedented opportunities. To enable the

EIR May 1, 1987 International 51 Together let us defeat the drug trade, the new slavery by General (ret.) Lucio Aflez

General Afiez is thefo rmer chief of staffof the Bolivian Armed traffickers lead theirs to the very destruction of the personal­ Forces, andfo rmer vice president of the Inter-American De­ ity ." John Paul II urged each of us that, "As free men whom fe nse Board. We excerpt here his speech to the Schiller Insti­ Christ has called to live in freedom, we should fightdecisive­ tute's conference on the 20th anniversaryof Populo rumPro­ ly against this new form of slavery which has subjugated so gressio in the Washington, D.C. area on March 26. many in so many parts of the world." To do away once and for all with this new form of slave In reviewing what has occurred in these last 20 years , since trading is the task of all civilized nations. It is crucial that we Pope Paul VI issued his historic encyclical which we com­ undertake a genuine war on the drug trade , a war which not memorate today , we cannot fail to emphasize one of the only will combat the effects that drug consumption has on its leading consequences of not having paid attention to the victims, but which directly attacks the cause of the evil and warnings of Populorum Progressio: the proliferation of the its origins. drug trade . From the rubble that the economic crisis made of lbero­ Dope, Inc.: threat to the West America, a powerful business has emerged in these last few The drugtrade has grown to the point of becoming a state years: Dope, Inc . unto itself, which has declared war against all the civilized It emerged as a direct product of the misnamed "free nations of the West. Today, the drug trade represents a finan­ enterprise" economy which, as Paul VI said in his memorable cial, political, and military power that threatens all the de­ encyclical, represents "a system that considers profit the es­ mocracies of the world . As Democratic presidential pre-can­ sential motor of economic progress, competition as the su­ didate Lyndon H. LaRouche stated in 1985, we must respond preme law of economics, private ownership of the means of in accordance with this reality: The civilized nations must production as an absolute right, with neither limits nor cor­ declare war on the drug trade , and wage it with the weapons responding social obligations. This unrestricted liberalism, of war. which leads to dictatorship, was justly denounced by Pius XI If we look back, during recent years the only beneficiaries ,,, as the cause of 'the international imperialism of money. of the infamous austerity programs imposed on the nations (Liberal Capitalism. Populorum Progressio, 1967) of Ibero-America as a condition for rescheduling the foreign His Holiness John Paul II emphasized this question dur­ debt, have been the drug traffickers. To the same extent that ing his pilgrimage through Colombia last year. "To be free we have witnessed the constant growth of unemployment, Christ liberated us," said the Pope , citing the Bible (Galatians the bankruptcy of agriculture and of our incipient industry, 5: 11), during his visit to Cartagena de Indias. "Slavery," so have we seen the power of the drug traffickers grow . stated John Paul on this occasion, "has been abolished For the impoverished nations of Thero-America, this sit­ throughout the world, But, at the same time, new and more uation is truly dramatic . In Bolivia, it is already a tragedy. subtle forms of slavery have emerged because 'the mystery Years of blocking productive investments to channel export of iniquity' does not cease to act upon man and upon the earningsinto payment of the debt, have submerged the coun­ world. The ambition of money captures the heart of many try,not in stagnation, but in economic regression. and turns them, through the drug trade, into traffickers in the Thousands of peasants have been impoverished in the freedom of their brothers who are enslaved by a far worse past few years , due to the fall in their products' prices. The slavery, at times, than that of the negro slaves. The slave collapse of the price of tin haS caused unprecedented levels traders denied their victims the exercise of freedom. The drug of unemployment in the country. There is not-and I don't

52 International EIR May 1, 1987 speak of surplus to pay interest on the debt-there is not even routes of illegal trafficking and distributing of drugs; and the minimum necessary to sustain the population in a digni­ eliminating any drug mafia control over the economy. fied way . In the midst of all this, the drug mafia arrives, There must be collaboration and coordination among offering thousands of dollars to peasants to grow coca. governments of those nations which accept the challenge of wiping out this scourge, based on mutual respect for national Threat to national security sovereignty. In general , the nations of Ibero-America have The drug traffickers use their billions in profits to pay enough trained personnel to carry out this fight, but they lack terrorist armies and to attract corrupt military men into righ­ the means to do it effectively, such as airplanes, helicopters, tist coup plots , betimes headed by former officials of the radar, and other modem systems of detection. Collaboration German Nazi regime. This is where the greatest threat to with the United States would remedy this situation. democracy comes from. The capacity of the governments to This collaboration should not be conditioned, because confront these bloody threats is undermined by the growing you cannot set conditions on a war against the drug trade . By number of officials from government, political parties, and itself, the war on drugs is to the benefit of all the nations of private institutions who are bribed by the drug traffickers . the hemisphere. Cocaine and marijuana produced in the clandestine fields Further, there should be agreements to precisely regulate and laboratories of South America must be transported thou­ the activities of financial institutions, so as to be able to sands of kilometers until reaching its destination in the United automatically detect deposits and transfers of funds in any States or Europe . In crossing the border into the United direction by those suspected of involvement with the drug States-be it by land, air, or sea-it still has to be transported trade . The proper authorities should immediately take over thousands of kilometers more . Then it must pass many cus­ and confiscate whatever financial, commercial , or real estate toms houses, state borders , and cargo review stations. Then institutions, as well as the personal funds, of those who are it remains for months in warehouses until it is brought to proven to have been employed in the cultivation, processing, street distributors to be sold retail. They will collect small­ transport, or sale of illegal drugs. denomination dollar bills, which will then follow an ascend­ The economic and financial resources of the drug traf­ ing chain until they land in the most internationallyreputable fickers must be confiscated , dismantling every commercial banks , without anyone questioning the origin of the enor­ or political group associated with the drug trafficking con­ mous quantities of dollars deposited in bags or cardboard sortium. boxes . In all of this organized chain are politicians, security Special attention should be paid to the banks , securities officers , financiers, and promoters of "free enterprise," under houses, and other commercial institutions which de fa cto one chain of command. form part of the international financial cartel which coordi­ It is impossible to crush the growing political power of nates the flow of hundreds of billions dollars a yearin illegal the drug traffickers anywhere-including the United States drug profits. of America-without seizing the billions of dollars from the We must reach agreements for disposing of the billions drug trade that move through corrupt banking institutions . of dollars confiscated as �e property of the drug trafficking Moreover, within the same civil society we frequently consortium, assigning them to useful purposes, for economic meet prominent institutions and individuals who, acting as development, in infrastructure, agriculture, and the manu­ the drug mafia's fifth column, promote a thousand variants facture of useful goods. There should also be international of legalizing the drug trade . Perhaps if we were to trace back collaboration, so that the right of sovereign states to take a few case studies, we would find ourselves with those same possession of the properties of their citizens can be exercised, institutions and individuals who a century ago insisted on the be they within national territory or abroad, based on the horrendous legalization of slavery . obligations of those citizens to the state. Given the nature of the problem, it is clear that no single I conclude with another quote from Pope John Paul IT nation-alone-could do away with the drug trade , not even during his visit to our continent last year. On his trip through on its own soil. No republic on its own could defeat that Bucaramanga, Colombia, JohnPaul II gave a homily in which monstrous complex of criminal , financial, and political forces he emphasized the responsibility of Christians "to assure the that runs the internationaldrug trade. I believe that the nations economic , social, cultural, and religious conditions that fa­ of the Americas must show the world a good example of our vor the unity and stability of the families, that reinforce the commitment to our democratic traditions, to defense of our sense of respect for life, that attack the deep causes of vio­ liberties, and to our noblest traditions. We must act, together lence and of terrorism, that combat all these forms of corrup­ and seriously, to stop this threat that hangs over us. tion of the social fabric." As he called then, we call now to Consequently, we must begin to formalize serious agree­ end "the extant contradiction between the underlying Cath­ ments for the continent-wide eradication of any unauthorized olic culture among the people and within the nation, and those cultivation of marijuana, poppy, or coca; destroying the lab­ social, economic, and political 'structures' expressing and oratories and clandestine warehouses; shutting down all the generating injustices derived from sin."

EIR May 1, 1987 International 53 the West. The time coincidences in these incidents raise the question of sabotage. According to intelligence and anti-terrorist specialists from several NATO countries and from Switzerland, Moscow has decided to launch a new form of insurgency in Western Eu­ rope: environmental sabotage. Indeed, several European countries, especially Britain imd France, having shown clear Is KGB sabotaging hostility toward Gorbachov'$ "zero option" serial-manufac­ tured "offers ," the KGB and other Eastern intelligence ser­ French nuclear? vices have decided to whip up the ecology and peace move­ ment and to entertainthe confusionbetween nuclear weapons by Laurent Rosenfeld and nuclear power to arouse the population against "nukes. " Less than a month ago, attendees at a strange conference of the Cini Foundation in Venice came to the conclusion that In a matter of just a few days or weeks, both the French and France was going to be the prime target of "nuclear terror­ international press have reported with banner headlines sev­ ism." eral incidents which have plagued various u�ilities of the French civilian electronuclear program. Most of these so­ Possible industrial sabotage called nuclear accidents were of "the monkey wrench falling The first case of possible sabotage was the fire at the on the ingrown toe nail of the clumsy worker's foot" type, Sandoz chemical factory in Basel last fall, which caused with the added flavor, of course, that they took place in a considerable pollution of the Rhine river. Some intelligence nuclear power plant-in other words were pure media hype specialists believe thatit could well have been sabotage aimed for non-events. at stirring up part of the European population against the There were, however, three incidents perhaps worth re­ Swiss chemical industry-aD act which could jeopardize an porting down the 27th page of the local papers: A minor non­ effective civil defense program against chemical and bacte­ radioactive steam leak in the second unit of the Tricastin riological weapons. At the time when the Sandoz fire had power plant, another non-radioactive steam leak in the sec­ whipped up much hysteria in the media, there were several ond unit of Fessenheim, and the loss of a few pounds of instances of "greenies" voluntarily pouring poisonous sub­ uranium hexafluoride, a gaseous compound of natural ura­ stances into the Rhine in order to better stimulate panic ! nium, used in the gas diffusion enrichment plant of Pierre­ The second element is the revelations of Werner Stiller, latte, which caused minor inconvenience for a few workers, a high-ranking East German officerwho defected to the West. not so much because of the very weak radioactivity of the He reported that the East German secret service, the Stasi, hexafluoride, but simply because of its chemical toxicity. had commissioned some of its agents to spill small quantities All these incidents would have passed unnoticed if it were of radioactive materials in the vicinity of Western nuclear not for another incident, itself raising absolutely no danger facilities, to set off the radioactivity control instruments and to safety, but which took on importancebecause it happened thus whip up the West German and other West European in the largest fast breeder in the world, the 1200 MWe Su­ "Greens." perphenixreactor of Creys-Malville. There, about 20 tons of Let us be clear. We have currently no hard evidence of melted sodium leaked out of the barrel, i.e., a lock-chamber sabotage in the Superphenixi or other French incidents. But in the secondarycoolant loop through which the fuel elements two things are known: 1) The Soviets have decided to sabo­ can be introduced into or removed from the reactor itself. tage the French nuclear program in order to better jeopardize The spilled sodium was not radioactive, and is contained in the pro-nuclear weapons consensus of the French political an armored vessel under an inert atmosphere. Clearly, safety scene; 2) the French counterintelligence agency, the DST, is not impaired by this technical failure, which did not even has just revealed that at le$t 244 French companies-in­ force the utility to stop the reactor, but fixing the problem cluding 10 in the energy sector-were infiltrated by Eastern may turn out to be quite costly. secret services. Moreover, several Soviet spies were recently unmasked around the Ariane rocket program, just a few Cbernobyl anniversary months after the partlyunexplained failure of a launch. In fact, the most remarkable feature of all these unprec­ Former French Defense Minister Charles Hernu, who is edented incidents and the other non-events is that they all no doubt well-informed on these matters , recently stated the came a few weeks before the firstanniversary of the accident point: "It is certain that we · will be subjected to pressures of the Ukrainian Chernobyl plant, which the environmental­ [from the Soviets]. France is going to be the point of conver­ ist movements in Western Europe intended to use as a mo­ gence for the efforts of all ' the so-called 'pacifists,' anti­ bilization argument to support their campaign, not against militarists, and anti-security elements. This could even lay the Russian nuclear program, but against nuclear power in us open to terrorist actions."

54 International EIR May 1, 1987 Reportfr om Paris by Claude Albert

Defense officials reject Soviet ploy finlandization, and, beyond, to that of Warning of Gorbachov's "tremendous sleight of hand, " the Europe as a whole," Baumel said. Fil­ Ion stressed that "what must be French pinpoint Russia's desire to stop European defense efforts. achieved is a reinforced Franco-Ger­ man axis"; former Minister Charles Hernuhas similarly called for the "re­ inforcement of Franco-German de­ fense pillar. " Obviously this idea is not to Mik­ Mikhail Gorbachov' s latest offer sion of the French Assembly, Gaullist hail Gorbachov's taste . French mili­ to eliminate short and intermediate Fran�ois Fillon, to the same newspa­ tary circles, Le Monde reported, think range nuclear weapons in Europe , the per, since short-range weapons "are that behind the latest proposals, the "super zero option ," would leave Eu­ the weapons which forbid 'surprise ,' Soviets are racing to prevent, or at rope deprived of its only weapons ca­ massive attacks by the Soviet army ." least slow down, efforts toward' a Eu­ pable of countering Soviet conven­ The French nuclear deterrent force ropean defense. In the next few years , tional and chemical superiority: Such might not be affected now by disar­ according to a Defense Ministry is the prevailing view in French de­ mament talks , but "this will inevitably spokesman, a "historic opportunity" fense circles. This is why Moscow is be the next step," and "in France, nu­ could exist, due to the relative stability proposing to gradually eliminate these merous voices will call for a freeze, of West European governments , which forces, military officialsbelieve here , for non-modernization of our forces, would give those governments the ba­ without, other than verbally , touching and the present consensus on defense sis to set up a European defense "pil­ the Soviet strategic nuclear arsenal and will flyinto pieces," Fillon warned. lar," standing by the American ally. enormous conventional forces. Were the Americans to be tempted Moscow's "piling on the pressure" is How could France and Britain long to accept the Soviet proposals, "it aimed at destroying such an opportu­ resist combined U.S. and Soviet pres­ would be a great folly," said Fillon, as nity, the spokesman said. sures to eliminate their nuclear forces, "it would further accentuate the dan­ The current nuclear scare cam­ once the superpowers have disman­ ger of a decoupling. One cannot bet paign in France, launched by various tled their intermediate and short-range Europe 's security on Gorbachov's nice leftist quarters including the radical weapons in Europe , military experts looks." wing of the Socialist party (backed, warn . "Mr. Gorbachov is a brilliant Gaullist deputy Jacques Baumel, curiously, by the right-wing extremist card sharp , who gives the impression vice chairman of the Defense Com­ party National Front), after minor in­ he is flinging all of his game on the mission , interviewed by the same cidents in two nuclear plants , bearsthe table , while he keeps, hidden in the newspaper on April 18, called the So­ hallmark of Soviet disinformation. other hand, some master trumps," a viet offer a "tremendous sleight of Strangely enough, these incidents took French Defense Ministry spokesman hand" which would "leave Europe na­ place nearly at the same time, at the is quoted in Le Monde on April 18. ked" and "in danger of death ." The "Superphenix" fast-breeder site in "France has nothing to negotiate," danger of Gorbachov' s proposals, he Creys-Malville and at the Pierrelatte former Defense Minister Charles Her­ stressed, lies in that "they appear as a site, producing plutonium for military nu , a Socialist leader, points out in an contribution to peace while, in fact, purposes; despite the fact they pre­ interview to Le Quotidien de Paris. they would result in dangerously sented no danger, "voices" are rising April 17 . But "it is certain," he added, weakening the Western Alliance and to denounce the "corrosion of the "that we will be subjected to pres­ especially in reducing Europe's de­ whole nuclear circuit," targeting nu­ sures. France is going to be the point fense possibilities, while preserving clear power in both its civilian and where the efforts of all the so-called the enormous superiority of the Soviet military applications. While such a 'pacifists ,' anti-militarists, and anti­ Union in terms of conventional campaign is not likely to have much security will converge. This could even forces." effect on the French, largely.suppor­ lay us open to terrorist actions." No longer protected by the U.S. tive of nuclear energy, it is just what Moscow's new proposals are nuclear umbrella, "Germany, inevit­ the Green and pacifist movement in "what I feared most," said the chair­ ably , will tend to drift toward a sort of West Germany needs to agitate against man of the National Defense Commis- active neutralism which will lead to its a Franco-German axis.

EIR May 1 , 1987 International 55 rection. The cynical Conservative Party, like the Democrats Colombia in the United States, is sitting with folded arms , in hopes that the Barco government's problems will give them a better shot at the presidency in 1990. The "official" Liberal Party, ruled behind the scenes by Liberals accused former president and mafia godfather Alfonso Lopez Mich­ elsen, boasts a five- man directorate made up of the country's of 'political AIDS' most degenerate politicalgangsters and mafiapublic relations mouthpieces. Unable to exercise total control over President Virgilio by Val erie Rush Barco, who has waged an anti-drug war against deadly odds, Lopez has determined to put his political heir, drug legali­ Colombian political society was stunned by the April 12 zation lobbyist Samper, into the presidency in 1990. Lopez statements of Sen. Ivan Marulanda Gomez, one of the five has also reportedly tried to woo New Liberalism's Galan back directors of the New Liberation faction inside the ruling Lib­ into the official Liberal Party fold, with offers of a Galan eral Party . In an interview with the anti-drug daily El Espec­ presidency in 1994. To that mooted possibility, Marulanda tadar, Marulanda declared that the drug trade had success­ declared: fully closed the mouths of Colombia's political parties, the "There is a norm here which says, 'This is all true , but Church, the judicial branch of government, and private en­ one cannot say so.' We have a hypocritical establishment terprise. He specificallynamed ErnestoSamper Pizano , head which does not allow the country to face up to its crisis. of the Liberal Party's National Directorate (DLN) and moot­ Identifying the problem is the first step toward its solu­ ed presidential candidate for 1990, as "the son of political tion ....[Galan] is the key and foundation of this whole decadence" in Colombia, and accused the entirety of the process. We are now trying to come to power under condi­ mafia-linkedDLN of having "political AIDS, for which there tions that will allow the transformation of this society. . . . is no antidote." Taking power so that things remain the same is not worth the Marulanda pulled no punches in identifying Samper's effort." links to the drug mob: "Samper is a child of crisis, of political decadence ....He 's the type that sits down with contra­ Bravery in isolation? bandists when it is in vogue and helps them to protect their Marulanda's courageous statements, which have made business. And when the drug traffickers are in fashion, he him a high-profiletarget for mafia assassins, have been com­ goes to a five-star hotel and meets with them ....To the pared by some with those of Rodrigo Lara Bonilla, the anti­ marijuana growers, he says legalize ...." drug justice minister and collaborator of Galan who was Samper's sole response to Marulanda's accusations thus murdered by the drug mafia in April 1984. El Espectadar far has taken the form of an appeal to "Liberal dignity" and a columnist Maria Jimena Dusan observed April 21 that, like warning to presidential hopeful Luis Carlos Galan, head of Marulanda, "Rodrigo Lara Bonilla remained alone in his New Liberalism, against adopting Marulanda's views. Sam­ fightbecause he said what he thought ....This open, frank per's gangster colleague on the DNL, Alberto Santofimio attitude did not find sufficientbackup within his own move­ Botero, similarly blustered that "the dignity of the Liberal ment. Yet today, his solitary denunciations are one of the Party is not negotiable." Marulanda answered: "It is the dig­ battle cries of New Liberalism ....Ivan Marulanda's state­ nity of the nation which is at stake. " ments are inopportune for certain members of New Liberal­ ism, who have very concrete bureaucratic aspirations ...." Violating the pact However, Marulanda' s ,efforts to purge the country of Marulanda's accusations have landed like a ton of bricks mafia influenceare not alone. In early April, President Barco on a decrepit political structurerenowned for its "mutual non­ granted legal status to the newly formed Unified Workers aggression pact." Other leaders of New Liberalism expressed Confederation (CUT), thus putting an end to the stalling horror at Marulanda's breaking of the rules, and rushed to tactics of two consecutive labor ministers who had yielded to issue a statement insisting that ,he was speaking solely in his mafiapressur es. The CUT, �epresenting 80% of Colombia's own name. Galan, the man for whom Marulanda's moral organized labor, was foundedin 1986 as an alternativeto the challenge was in fact intended, is in Europe and has not yet mafia-corrupted federations financedby the U. S.-based Proj ­ commented. ect Democracy's American Institute for Free Labor Devel­ Marularida's denunciations appear at a moment of un­ opment (AIFLD). It has already announced plans to form a precedented political crisis in the country. Leaders of the new "workers party" to combat mafia influence in politics. In leftistpolitical party, Political Union (UP), are being assas­ granting legitimacy to the CUT and its president, former sinated literally by the hundreds, driving many of theamnes­ Labor Minister Jorge Carrillo, Barco was sending a message tied guerrillas that make up its ranks back into armed insur- to theLOpez/Samper forc es that the fieldis no longer theirs.

56 International EIR May 1, 1987 • From New Delhi by Susan Maitra

A healthy initiative an governmenthas already begun im­ Otis Bowen's visit helps advance what is already the most active plementing a policy of mandatory fo cus of Indo-U.S. joint research. testing of foreign students, 80% of whom are from Africa and a total of 10 foreign students and tourists with the disease have been deported. Some 100 cases of AIDS have al­ ready been identified within the coun­ try , in spite of an extremely limited screening capability and virtually no means to handle a rapid spread of the disease. The VAP is also a priority focus of joint work, as part ofthe Science and Technology Initiative (STI) for accel­ T he ten-day tour of U.S. Health and U. S. have agreed to coordinate efforts erated collaboration in health, agri­ Human Services Secretary Otis Bow­ to combat AIDS . Joint work, the de­ culture, and energy that was launched en, at the invitation ofIndia's Minister tails of which are to be developed in by PresidentReagan and the late Prime for Human Resource Development subsequent meetings, is expected to Minister Indira Gandhi in 1982. VAP Narasimha Rao, ended April 22. Dr. include surveillance for AIDS cases, was made a centerpiece of the joint Bowen is the first American health development of improved diagnostics research agenda in 1985, when Presi­ secretary to visit India in spite of the and confirmatory tests, and develop­ dent Reagan and Rajiv Gandhi re­ fact that Indo-U.S. cooperation in ment of protocols to investigate the newed the STI for three more years . health and biomedical sciences is ex­ epidemiology and risk factors for the The VAP will sponsor joint re­ tensive and longstanding. infection as well as cooperation in search and development of technolo­ Bowen's aim was to review and treatment, including improving the gies for new and improved vaccines formulate furtherjo int projects in con­ immune process and developing a and provide support for quality con­ sultation with his counterpart and vaccine. Bowen later emphasized that trol in expanded production and utili­ medical professionals here. Talks with one of the first tasks would involve zation of the vaccine. Areas of focus Mr. Rao, whose charge includes determining the character of the AIDS will be diarrheal diseases-still the Health and Family Welfare , produced virus, whether it was the same the most potent killers of infants and chil­ a joint statement outlining stepped-up world over or had distinct regional dren in India and other developing na­ cooperation in three areas: AIDS, vac­ variations. tions-acute respiratory infection, cines, drug and alcohol abuse. The indications that serious epi­ malaria, hepatitis, and rabies. A group Bowen also signed a memoran­ demiological studies form a leading of experts is to be formed to identify dum of understanding on the Vaccine partin the collaboration is most prom­ specificpro jects. Action Program (VAP) , in particular, ising. Indian medical professionals are Bowen's visit was preceded by a with Minister of State for Science and well aware that the environmental fac­ three-day trip to Washington in No­ Technology K.R. Narayanan and vis­ tors prevalent in, poor tropical devel­ vember by Prof. A.S. Paintal, the new ited the Indian Council of Medical Re­ oping countries have been written out director general of the Indian Council search, the All-India Institute of Med­ of most studies of the disease in Eu­ of Medical Research, India's premier ical Sciences, and the National Insti­ rope and the U. S., with the result that medical institution. Paintal had been tute of lmmunology in Delhi. He also the conclusions of such studies are of invited by U.S. Surgeon General C. visited Madras and Bombay, where he dubious value here. Everett Koop to follow up on the rec­ toured health service units, hospitals, It is not known how seriously In­ ommendation for collaboration in and research centers for cancer and dian officials took Dr. Bowen's ad­ health and biomedical sciences out­ tuberculosis. vice, offered to reporters at least, that lined during the last meeting of the Three areas of collaboration are a policy of testing visitors and immi­ Indo-U.S. Science and Technology due for a new thrust, according to re­ grants to keep AIDS carriersout of the Subcommission in Washington last ports of the visit. First, India and the country was "impractical." The Indi- September.

EIR May 1, 1987 International 57 International Intelligence

maj or periods of government since the war AIDS threat has gone for good." British scientists comes to Asia The magazine says many of Labour's being murdered? new recruits are allied to the Trotskyist So­ cialist Workers Party, and support both the Asia is "the last frontier for AIDS," said Eleven British defense scientists have either "Committee for Nuclear Disarmament" de­ World Health Organization director for the disappeared, "committed suicide," attempt­ mand for British withdrawal from NATO , Western Pacific, Hiroshi Nakajima, accord­ ed suicide, or died under mysterious cir­ and proposals for closer Labour relations ing to the International Herald Tribune. cumstances over the recent period. with the Irish Republican Army. • Indonesia reported its first AIDS death The April 18 Daily Express, in a feature The Times of London emphasizes that this month. The victim was a Dutch tourist. entitled, "Conspiracy or Coincidence," re­ Owen's Social Democrats hope to capitalize • Singapore also reported its first AIDS ports on the most recent case, involving a electorally on the left takeover of the Labour death in April. The victim, a citizen of Sin­ defense salesman, Robert Greenhalgh, who Party. gapore, was infected from blood transfu­ is in stable condition in Reading Hospital sions abroad, officialssaid. "after apparently attempting suicide." • In March, a Zairean diplomat based Greenhalgh fell 40 feet onto a railway line in China died of AIDS in Hong Kong , where Reagan to participate near his ICL office in Reading. he had gone for treatment. in drug conference Greenhalgh works with the defense di­ • Health authorities in Japan and Aus­ vision of the ICL company, which has con­ tralia both say they are concerned at the way firmed tJilat he has access to "sensitive" "President Reagan is to take part in a summit AIDS is spreading from "high risk groups" NATO information. conference of Latin American presidents to heterosexual men and women. Each of the II individuals, says the Ex­ later this year to discuss his campaign against • Australian Health Minister Neal press, "had been involved in work for the the international drug trade," reported Lon­ Blewett announced that he is inviting health Ministry of Defense." The Defense Minis­ don Times correspondent Geoffrey Mat­ ministers and advisers from the Asia-Pacific try, however, is refusing a request for a par­ thews from Bogota, Colombia April 24. The region to a World Health Organization con­ liamentaty investigation. summit is likely to be in Bogota, with Co­ ference in Sydney or Melbourne in July, to The Exp ress concludes that the events lombian President Virgilio Barco as host. cooperate on measures to prevent the spread represent "an extraordinary sequence," with According to Matthews, "Although the of AIDS. some in Britain believing it "demands more drug trade is the main motive for the meet­ • Dr. Ian Gust, director of virology at than a te�se dismissal." ing, participants will also discuss other top­ the Fairfield Infectious Diseases Hospital in ics including Latin America's foreign debt Melbourne, told the International Herald and economic development. ... Latin Tribune that mass travel and tourism were American presidents are likely to tell Mr. making it very difficult to control the spread Reagan that the drug trade fuels corruption of AIDS. Cardinal Ra[zinger and violence in their countries, with mount­ ing evidence in Colombia and Peru , in par­ to travel with Pope ticular, that drug racketeers finance and run Foresee leftist armsto guerrilla groups. " Joseph Cardinal Ratzinger, Prefect of the Meanwhile, Mexican Defense Minister Congregation for the Doctrine of the Faith, takeover of Labour Gen. Juan Arevalo Gardoqui met with his will accompany Pope John Paul II to Ger­ U.S. counterpart, Caspar Weinberger, in many fo� a one-week visit beginning April Whatever the outcome of Britain's upcom­ Washington April 22, and gave him an ex­ 29. Ratzlnger does not usually travel with ing general elections, the internal composi­ tensive report on Mexico's anti-drug efforts the Pope' s entourage outside of Italy, and tion of the British Labour Party will shift over the past four years. Arevalo then told the announcement created a small storm dramatically toward control by hardcore the press that "it would not be smart" to among liberal Catholics in Germany. leftist elements, writes the magazine Social disrupt good relations between the two Ratzinger became the bane of the liber­ Democrat, organ of Dr. David Owen's So­ countries. als in the period leading up to the Pope's cial Democratic Party. Weinberger publicly agreed that "the Extraordinary Synod of Bishops in Rome in "One fact is incontrovertible, " says the most importantaspect of this necessary mu­ November 1985. He has attacked economic magazine. "The moderate parliamentary tual collaboration is respect for the princi­ policies Which are detached from morality, party that sustained Labour throughout three ples and sentiments" of the two nations. and orchf!strated the disciplining of "dissi-

58 International EIR May 1, 1987 Briefly

• ITALY is now governed by a mi­ nority , one-party caretaker govern­ ment, under Christian-Democratic president of the Senate, Amintore Fanfani. The government was voted down April 20, in preparation for dents" who believe it their right to teach any the "cultural, political, economic, and relig­ general elections in June. Attempts private opinion as if it were part of Catholi­ ious levels." by outgoing Prime MinisterCraxi and cism. A source close to the Vatican said the Foreign Minister Andreotti to form a The Pope's decision may be read as a conference celebrating the "Russian" mil­ stable government to last until sched­ warning to the German liberals, a warning lennium is a "slap in the face" to Pope John uled elections in 1988, were unsuc­ underscored by recent statements of Bishop Paul II , who has asked Soviet authorities for cessful. Joachim Degenhardt of the important Pad­ permission to visit Kiev, not Moscow, to erborn diocese. Degenhardt denounced the celebrate the millennium of KievanRus . The • AFGHANISTAN'S former king government's "use condoms" campaign Thurn und Taxis faction wants the Catholic is reportedready to returnto Kabul to around AIDS as "pushing aside all moral Church in West Germany to conform to consider leading a government of values. " He accused the governmentof fail­ Moscow's agenda-allowing the Pope to "National Unity," says Soviet-agent ing on such fundamental values as family visit only Moscow for the celebrations. billionaire Armand Hammer. The and marital relationships, of refusing to French paper Liberation April 18 change the "libertinist sexual morality, which quotes Hammer saying that he has has become the fashion today . " Bilderberg Group held a series of discussions with the The archbishop also called on "all those king. who bearresponsibility in society and poli­ convenes in Italy tics" to address the "necessity of a radical • TWO BRITONS were arrested change, after the so-called liberal image of There's lots of conspiring going on in the at Paris's Charles de Gaulle Airport, man has provento be a misleading and false tiny town of Cernobbio, Italy these days. carrying five kilos of cocaine, worth track." Theannual summit of the Bilderberg Group three-quarters of a million pounds­ began there on April 22, in the Lake Como sterling. Simultaneously, Scotland areaof italy. Yard began raiding the London ad­ An account published on the front-page dresses of associates of the two, and ofitaly'sll Giornalethe following day, said Thurn und Tax is confa b found 200,000 pounds-worth of expected attendees include Henry Kissin­ drugs. celebrates Russianch urch ger, Paul VoJcker, David Rockefeller, Queen Beatrix of the Netherlands, Fiat magnate • NATO MANEUVERShave been A five-dayconference under the title, " 1000 Gianni Agnelli, and possibly Guido Carli, set for June, it was announced April Years Between the Volga and the Rhine," former Bank of Italy governor. 21 at Supreme Allied HQ in Brussels. bankrolled by the fabulously wealthy Prince The proceedings of the second day were The maneuvers, code-named "Au­ Johannes von Thurn und Taxis, was held to begin with a panel on "Strategy Toward rora Express," will test the rapid de­ April 21-26 in Regensburg, Bavaria at the the U.S.S.R.," while April 25, was to begin ployment capabilities of NATO's Al­ Benedictine Ostkirchliche Institut. The with a panel led by Rockefeller, on "The lied Mobile Force. Five thousand Prince's castle is located there, and contains Public Sector and Economic Growth." troops representing seven NATO a Benedictine monastery. IIGiornale headlines its coverage ofthe member nations including the United Officially sponsored by the Ecumenical Bilderberg meeting, "How to Get Together States, Turkey, Belgium, Britain, It­ Commission of the German Catholic Bish­ the Kings of the World Without Any Public­ aly, and West Germany, will partic­ ops Conference, the conference will cele­ ity." The "secretmeet ing," it says, is being ipate. brate the 1 ,000thanniversary of the Russian guarded by 1,000 police and carabinieri at Orthodox Church. the Hotel Villa d'Este in Cernobbio. • 'SPY MANIA' in France, lead­ A delegation from the Moscow Patriar­ The same news report calls the Bilder­ ing to the expulsion of Soviet "dip­ chate was to be headed by Metropolitan Fi- berg Group a "secret society," a "kind of lomats" and the revelation that 1aret of Kiev and Metropolitan Pitirim, and masonry," which is thoughtby theright wing hundreds of important French firms was to include leading European members to be a groupof financiers who lend money areinfiltr ated by the KGB , is a "prov­ of the Russian Orthodox Church Outside to communists, and by the left wing to be a ocation" by "conservative and reac­ Russia, like Father Graf (Count) Ignatiev, bunch of people who make coups d'etat. tionary elements in France ...look­ descendant of the notorious Czarist secret A mainstream view, the I paper con­ ing for ways of discrediting the So­ police (Okhrana) family. Papers prepared cludes, is that the Bilderbergers want to viets," says the latest issue of the So­ focused on "One thousand years of relations "reinforce the technocratic component of vietp ublication, New Times. between the Russians and the Germans" on governments. "

EIR May I, 1987 International 59 �TIillNational

Police state methods used on LaRouche associates again

by Jeffrey Steinberg

In this, the bicentennial anniversary of the 1787 signing of the Departmentof Justice, including Criminal Division head the U.S. Constitution, officials of the Department of Justice William Weld, have moved to bankrupt and shut down have once again demonstrated that, at least in the case of LaRouche-linked publications months before they ever get Lyndon H. LaRouche, Jr. and his friends, that most sacred their day in court. document of the nation's republican tradition is a meaning­ Papers now filed before the First Circuit Court show that less piece of stained parchment. the original contempt fines, totaling $21 million, were ille­ On Tuesday, April 21, U.S. Marshals, acting under or­ gally imposed in the firstplace on the basis of false claims by ders from the Department of Justice and a federal bankruptcy then U.S. Attorney Weld th�t the three entities, plus the court, staged the sixth police-state raid since last October National Democratic Policy tommittee, a political action against companies and politicalorganizations associated with committee registered with the Federal Election Commission, presidentialcandidate LaRouche in Leesburg, Va. and a doz­ failed to comply with subpoenas for corporate financial rec­ en other cities around the United States. The previous day, ords. In fact, as government attorneys have now admitted in in a flagrantly illegal move, Henry Hudson, U.S. Attorney court, hundreds of thousands of documents were submitted for the Eastern District of Virginia, secretly appeared before to the grand jury during 1985. federal bankruptcy judge Martin V.B. Bostetter to obtain So outrageous and politically motivated were the initial involuntary bankruptcy orders against Campaigner Publica­ fines, that attorneysfor the LaRouche associated groups dis­ tions, Caucus Distributors , Inc . and the Fusion Energy Foun­ covered only in March 1987 that during the January to June dation under Chapter 7 of the federal bankruptcy statutes. 1986 period, the grand jury, which had been investigating In a seven-page Order Directing Appointment of Interim media-foisted allegations of credit card fraud by the 1984 Trustees, Hudson petitioned the court to seize the three com­ LaRouche campaign committees, had been dissolved with panies to enable the government to collect over $16 million no charges brought. The $21 million figure reflectsrunning in contempt fines imposed beginningin early 1985 by Federal fines that were maintained {or each of the four entities District Court Judge A. David Mazzone in Boston, Mass. throughout the period that there was no standing grand jury , These fines, themselves a flagrantly unconstitutional finan­ and throughout the subsequent five months in which a sepa­ cial warfare action aimed at silencing the LaRouche political rate but unrelated grand jury Was convened. movement in the United States, are still the subject of court proceedings before the First Circuit U.S. Court of Appeals Legally unprecedented in Boston, and therefore are not legally subject to collection. Even government officials have acknowledged that the By their actions on Monday, Hudson and his superiors at April 20-21 action is the first time ever that a Chapter 7

60 National EIR May 1, 1987 involuntary bankruptcy petition was used to collect court Gorbachov summit, over the same 'zero-option' issues pre­ fines. Under Chapter 7, government-appointed trustees are sented at Reykjavik. ordered to liquidate all corporate assets and terminate all "This Soviet pressure on the U. S. government is a very corporate activities. By every reading of the statute , the important factor in the occurrence and timing of these raids, Chapter 7 procedure only applies to business corporations but there are also others complicit in the Iran-Contra scandal, engaged in profit-making activities. Two of the three entities and certain others, who are more directly involved than So­ targeted by the Hudson-Weld action this week are not-for­ viet channels in pressuring corruptible officials into taking profit. Fusion Energy Foundation, a federally approved tax these actions. There is also a very special factor: The inter­ exempt foundation, publishes Fusion magazine and the In­ national banking system and stock markets are teetering at ternational Journal of Fusion Energy. Caucus Distributors this moment on the brink of a collapse worse than 1929- is a not-for-profitmembership corporation formed to distrib­ 1931." ute literature and promote certainpolitical and philosophical Elaborating on the critical policy battle brewing around ideas. Campaigner Publications, the only "business" corpo­ the imminent monetary blowout, LaRouche continued, "Some ration, is the publisher of the twice-weekly, 200,000 circu­ of you may have read the New York Times' headlined April lation New Solidarity newspaper. article 'The Crash of 87?' The European financialpr ess, and Thus, as attorneys for the publication charged in court in leading banking officialsspeaking privately to my associates, Alexandria, Va. on April 21, the bankruptcy action is a are much moreexplicit . Financial authorities are saying, that flagrant assault against the First Amendment right to free the international financialsystem is at the brink of a collapse speech. "This is a highly irregular one-of-a-kind procedure which could collapse stockprices by as much as 50% or more with frightening implications for the press," attorney Daniel during a short period. Some are advising their customers to Alcorn told the New York Times on April 21 , adding that the dump dollarholdings for cash and gold, predicting that gold government's failure to even inform the defendants of the may zoom to between $800and $1,000 an ounce during the pending court action and thus provide them with a right to a near future . hearing was a sharp violation of the U.S. Constitution's Sixth "What the U.S. government is doing right now, starting Amendment guarantee of due process. a trade war with Japan and other allies, and pushing up interest-rates, are the worst possible policies our government The strategic crisis could adopt at this time. The trade-war with Japan is already On learning of the federal bankruptcy order and the sei­ undermining the marketin U.S. governmentbonds , with the zure of the publishing and sales offices, Lyndon LaRouche ominous May 15 date for a vote on raising the U.S. debt­ issued a statement on April 23 which identified the broader limit coming up. Raising interest-rates, will promote a crisis motives and strategic context for the wildly unconstitutional in the 'junk bonds' market, setting off a crisis which must move: tend to crush the already sagging bond markets, and a col­ "This Tuesday (April 21) Federal agencies staged the lapse in the rotten-ripestock marke ts. The best guess among sixth police-state style raid on my friends in Leesburg, Va. Europeanexperts is, that the 'Crash of 87' will surface about since the virtual military occupation of that small town back mid-May, if present policy-trends are not changed immedi­ during Oct. 6 and Oct. 7, 1986. The fact that federal author­ ately. ities admitted that Tuesday's action was without legal prec­ "This looming financial crisis accelerates the continuing edent, and that the action was used in fact to prevent the police-state actions against my friends and me in two ways. publication of a newspaper, is sufficientevidence of the cor­ First, there is a faction on Wall Street which is wildly hyster­ rupt political motives behind this action. ical about me, fearing that in the case of a 'crash,' govern­ "The latest atrocity, like the police-state action by the ment might tum to adopt my policies o�t of lack of any same federal offices last Oct. 6, occurred following massive workable alternative in sight. Second, there are others, in­ Soviet demands issued from the highest level, demanding cluding Moscow and certain leading factions around Paul that my political influencebe eliminated in the United States. Kirk's Democratic National Committee, which are not so "The most recent barrage of Soviet demands for action much concerned with my economic-recovery proposals as against me include a featured attack in the March edition of such, as the fear that my importance under conditions of the Soviet leading political journalInternational Aff airs and economic crisis might catapult me to a leading position in the more recent attacks on Radio Moscow. The last time such a 1988 presidential campaign. barrage of Soviet attacks occurred was during the weeks "In short," LaRouche concluded, "these circles, and proceding the Oct. 6 raid on Leesburg, in the context of Moscow, wish me and my friends out of the way by the time preparations for President Reagan's meeting with Soviet the 'crash' hits. That, and not the phony accusations 'leaked' General Secretary Gorbachov at Reykjavik. Tuesday's atroc­ to the news media as pretexts for new police-state raids and ity occurred in the midst of preparations for a new Reagan- arrests, are what it is all about."

EIR May 1, 1987 National 61 In the 72-hour period fo llowing the April 21 muve to Supreme Court rulings over the past 50 years . padlock the offices of the LaRouche-linked publications, of­ Fourth Amendment: The Fourth Amendment prohibits ficials of the U.S. Attorney's office for the Eastern District "unreasonable searches and seizures" and says that search of Virginia have even further flaunted their contempt for the and seizure, when permitted, must beparticular and exacting; U.S. Constitution . Appearing at an emergency hearing be­ in this case the government has illegally seized offices and fore Judge Bostetter late in the afternoonof April 21 , Assis­ property not only of the three organizations named-Cam­ tant U.S. Attorney David Schiller falsely claimed that the paigner Publications, Caucus Distributors , and the Fusion government had no intention of shutting down the publica­ Energy Foundation-but also offices and property of legally tions-"unless it were to publish libelous material ." He si­ distinct corporations such as that which publishes EIR . multaneously submitted an exhaustive list of interrogatory Fifth Amendment: (a) The Fifth Amendment declares questions to the officers of the three companies, ignoring the that no person shall be compelled to be a witness against fact that all three are under federal and state indictments , and himself. Yet, the nature of a bankruptcy proceeding is such that the answering of those detailed financial and personnel that officers and principals of a "debtor" company must dis­ probes would be an abrogation of Fifth and Sixth Amendment close information to the trustees and the bankruptcy court. In rights . this situation, when the companies and many of its officers Increasingly, with the public unraveling of the "secret and employees are under criminal indictments, most criminal government" behind the Iran-Contra affair, the American attorneys will not permit individuals to make any statements public is being exposed to the harsh reality that the U. S. to government authorities. Such "failure to cooperate" en­ Constitution has been de facto suspended. While no other sures immediate liquidation of the companies. political organization has yet been .subjected to the level of (b) The Fifth Amendment also provides that no person outright government criminality equaling that to which (which includes a corporation) shall be deprived of life, lib­ LaRouche and his friends have been subjected since Oct. 6, erty, or property without due process of law . The involuntary 1986, the message is clear: Ifthe Wall Street-Weld cabal gets bankruptcy petition was filed, and seizures ordered, in a away with the elimination of LaRouche, no one is safe. And secret, ex parte (only one side present) proceeding, in blatant the greatest experiment in democratic-republican rule of law , violation of even the statutory requirement of notice and our own American Constitution, will have been buried under hearing. Offices were seized, employees thrown out, and a tombstone reading, "1787-1 987 R.I.P." corporations shut down, without any hearing or due process whatsoever. The first that any of the companies or their law­ The constitutional violations yers knew of the proceedings was when federal marshalls According to legal specialists, the action of the U.S. appeared at 7:00a.m. to seize and seal offtheir offices. Justice Department in throwing three LaRouche-identified Sixth Amendment: The Sixth Amendment, governing organizations into "involuntary bankruptcy" on April 20 was criminal prosecutions, provides the following: completely unprecedented, and represents such a fundamen­ (a) The right to trial, and to trial by jury: Here , corpora­ tal invasion of constitutional rights that it is potentially fatal tions which were indicted and awaiting trial , are now being to constitutional rule in the United States. "executed" before trial . The involuntary bankruptcypetition It is not just that the use of involuntary bankruptcy is relies heavily upon the "criminal" nature of these companies; unprecedented as an effort to collect a government fines, ·but yet by the time they would have a chance to go to trial, defend that the procedure is being used against defendants who have themselves, and prove their innocence, they will have been been indicted and are awaiting trial in a criminal case. As liquidated in the bankruptcy proceeding. such, the procedure constitutes "execution before trial," in (b) The right to confront witnesses: The ex parte. Star that the defendant corporations will be liquidated before they Chamber nature of the seizure ofthe companies denied this ever have an opportunity to go .to trial and prove their inno­ fundamental right. Further, the justification for this ex parte cence. proceeding was provided by other ex parte proceedings such The most egregkus constitutional violations involved are as the issuing of "Cease and Desist" orders by various state as follows: securities commissions and the ex parte attachment of the First Amendment: By shutting down two publica­ "PANIC" (anti-AIDS initiative) bank account in California tions-New Solidarity newspaper and Fusion magazine­ last summer. Each Star Chamber proceeding justifiesthe next and severely hampering a third-EIR -the United States one. governmenthas silenced voices which have been at the center (c)The right to the assistance of counsel: In a bankruptcy of major policy controversies over the past decade and more . proceeding, the lawyer for the debtor is obligated to provide The seizure of their editorial offices, throwing writers and information to the court, and can be ordered to waive the editors out onto the street, and the impending liquidation of attorney-clientprivilege . When the debtor is simultaneously the companies, constitutes the grossest type of "prior re­ a defendant in a criminal proceeding, this creates an insur­ straint" of pUblications-impermissible under a long line of mountable constitutional conflict.

62 National EIR May 1, 1987 strongman Ariel Sharon into power. The evidence against Demjanjuk solely originates from Soviet intelligence ar­ Linnas deportation: chives. pre-summit sacrifice Pre-summit deals Over the last month, U.S. Zionist delegations led by liquor and narcotics magnate EdgarBronfman and American by Joseph Brewda Jewish Committee operative Morris Abram, traveled to Mos­ cow, offering to broker negotiations for aU. S.-So viet sum­ In its rush to accommodate Moscow and set up the precon­ mit, in exchange for concessions to Israel, and to the U.S. ditions for a Reagan-Gorbachov summit, the U.S. State De­ Zionist lobby more broadly. Abram and Bronfman have of­ partment deported U.S. citizen Karl Linnas to the U.S.S.R. fered to lobby for the repeal of the Jackson-Vanik Amend­ on April 20, where he is expected to be summarily executed ment, which restricts U.S. trade of strategic technologies to for alleged war crimes. Russia, in exchange for the release of some 10,000 Jews to The deportation, like the police-state effort against La­ Israel. The delegates also covertly offered Moscow assis­ Rouche-affiliated publications reported elsewhere in this is­ tance in mobilizing the U.S. public against the SOl, and for sue, indicates the degree to which a longstanding Soviet Moscow's favorite candidates in the race for Democratic gameplan to destroy the U. S. Constitution has progressed. presidential nomination. Sources report that the elimination Preparations for the deportation of Linnas, and the onslaught of LaRouche, both politically and physically, was an includ­ against LaRouche, were directly overseen by General Mil­ ed, high priority item for discussion, for both the Bronfman shtein of Soviet military intelligence-now in Washington­ team and the Soviets. and were brokeredby several Soviet and Israeli assets in the Moscow's responsemight be partiallyread from extraor­ U.S. Zionist lobby, who have had shared motives for under­ dinary remarks made by Soviet intelligence's General Mil­ mining U.S. law. shtein in Washington, on April21 , as he began a eight-day A Long Island resident for decades, Linnas had been U . S. tour sponsored by the Center for Defense Information, accused by a Estonian court in 1962 of overseeing a Nazi together with five other active and retiredSo viet intelligence concentration camp during the war. The show trial nature of officers. Milshtein remarked that allSoviet Jews who desired the case is illustrated by the fact that Linnas' s conviction and could now leave Russia for Israel, except those, such as sentencing to death in absentia, were widely reported in the himself, in crucial national security posts. The raid against Soviet press-fully two weeks prior to his actual conviction LaRouche-affiliatedpublications and the deportation of Lin­ by what are called Soviet courts. One year ago, Linnas was nas that day, would appear to be counter-signals by the State abruptly seized by the Officeof Special Investigations (OSI) and Justice Departments, that the alleged conditions for the of the U.S. Justice Department, and thrown in jail, on the summit would be met. Renewed Soviet coverage of Anti­ formal basis of the Soviet court action. Linnas was subse­ Defamation League-conduited slanders in the Swedish press quently denaturalized in a U.S. civil procedure, and ordered that LaRouche's friends were suspects in the 1986 murder of deported in another civil hearing. The U.S. Supreme Court Swedish Premier Olof Palme, were also partof the pattern of refused to hear arguments by Linnas's attorneys. intelligence signals relating to the reported deal. The charge that Linnas was a war criminal was never Immediately prior to these moves, Soviet assets in the actually heard before any U.S. court. Linnas was simply U.S. Zionist lobby, led by formerU. S. Rep. Elizabeth Holtz­ deported based on the videotaped testimony of a handful of man, directed a mobilization against AttorneyGeneral Edwin Soviet witnesses, who were interviewed by the notorious Meese, effectively pinning down any elements in the Justice Soviet Procurator General's office, on their alleged 45-year Department that might have opposed blatantly unconstitu­ old memories. Even if one could accept the astonishing claim tional actions like the Linnas deportation or the attempted that such Soviet "evidence" is admissable in U.S. courts, silencing of publications that issue LaRouche's writings. Linnas was not allowed the constitutional right of cross­ Meese has been under escalating attackthrough the Wedtech examination of his accusers, nor the right to a jury in what corruption scandal in New York, which has implicated his the U.S. Justice Departmentfrau dulently classifiedas a civil associates in graft , and in the Iran-Contraaff air. procedure. One week prior to the Linnas deportation, Meese had The political preparation for the judicial murder of Lin­ quietly worked out for Linnas to be deported to Panama, nas, was the recent deportationof Cleveland autoworker John rather than to the Soviet Union. As news of this arrangement Demjanjuk to Israel, to face charges of being a concentration leaked out, the World Jewish Congress, chaired by Edgar camp guard in Nazi-occupied Ukraine. The ongoing "Mos­ Bronfman, and Holtzman violently denounced Meese and cow show-trial" of Demjanjuk is being used to create the arrntwisted the Panamian governmentso severely that it soon hysterical atmosphere in Israel required to bring Soviet-allied rejected accepting Linnas.

EIR May 1, 1987 National 63 p.m. Central European Time, i.e., 9 a.m. Eastern Daylight Time, after the Leesburg seiZures occurred-so tightly co­ ordinated was the timing.

Soviet diatribes The barrage Radio Moscow April 21 highlighted an April 19 anti­ targeted LaRouche LaRouche slander from the Swedish daily Aftonbladet. say­ ing: "Swedish police still suspect the extremist right-wing by Konstantin George European Labor Party [EAP] in the Palme investigation. After the crime, the party went underground. It is believed that some members leftfor the United States. The case might The April 21 U.S. government seizure of Leesburg, Va. have involved foreign service agents from the CIA, South entities politically associated with U.S. presidential candi­ African, and Israeli secret services." The EAP are co-think­ date Lyndon LaRouche, followed a wave of "telegraphed" ers of LaRouche. Soviet demands from the highest level that LaRouche's po­ Radio Moscow, citing Aftonbladet. said that "inquiries litical influencein the United States be eliminated. The Soviet continue into the circumstances ofthe assassination of Swed­ demands were transmitted via a barrage of slanders in the ish Prime Minister Olof Palme ....The police are giving Soviet media against LaRouche. the greatest attention to the right-wing extremist group, the The attacks began in the March edition of the leading European Workers' Party (EAP) in the crime ....For a Soviet journal, International Affairs. with a seven-page fea­ number of years this group has conducted a campaign of ture libeling LaRouche as a "neo-fascist." The article was hatred and hostility . . . in Stockholm and abroad." authored by Vladimir Pustogarov, an intimate collaborator The Aftonbladet slander was concocted in cooperation of former U.S. Attorney General Ramsey Clark and corrupt with the U.S.-based organization of thugs with Jewish sur­ networks in the U.S. Department of Justice (cf. EIR . April names, the so-called Anti-Defamation League or ADL. The 24, 1987). On April 21, the day of the raid, both Radio co-author of the slander, one Stefan Borg, is a close collab­ Moscow in Russian (domestic) and English (overseas), and orator of ADL leaders , including Irwin Suall, head of the Soviet military radio stations such as Radio Volga (East Ger­ ADL "Fact-Finding Division" and unofficial ADL case offi­ many) began what has become a daily outpouring of slanders cer against LaRouche. against LaRouche. Here, Moscow reactivated the 1986 slan­ The Aftonbladet report was submitted to Radio Moscow ders accusing LaRouche's friends of responsibility for the by Stockholm Tass correspondent Vukolov. Vukolov, him­ murder of Swedish Prime Minister Olof Palme, and then ' self a case officer against LaRouche's Swedish associates, progressed into "covering the news" of the Leesburg sei­ was one of the authors of a September New Times slander zures. against LaRouche arid his organization. Prior to the earlier Oct. 6, 1986 raid on Leesburg, Mos­ A nearly identical broadoast was sent out April 21 on the cow had issued a six-page calumny against LaRouche in its Soviet military radio station in East Germany, Radio Volga. multi-language internationalweek ly, New Times.calling him Radio Moscow, in its Russian-langauge morning news "most dangerous" and a "Nazi without swastika." Threedays program April 21-before the raid and continuing through before that earlier raid, Soviet leader Gorbachov, speaking the morning-employed the InternationalAff airs "neo-fas­ in Moscow, in a code-phrase call to destroy LaRouche, de­ cist" slander against LaRouche. The "Leesburg raid" story livered a long tirade against "Nazis without swastikas" as (quoting an AP wire) was added on to the Aftonbladet slander being "by far more dangerous" than the swastika variety. in the next morning's (April 22) broadcasts. In October, when the raid occurredju st prior to the Reyk­ A signal that this barrage was coming appeared in the javik summit, and now, the Soviet attacks and the raids come April 17 Izvestia. which carried an article by Soviet "La­ at a time when President Reagan is under strong pressure to Rouche-watcher" A. Sichev. titled "They Hated O. Palme." adopt a "zero option" INF agreement with the Kremlin. After Sichev. author of past arti¢les in Izvestia slandering La­ Secretary of State Shultz returned from Moscow April 16, Rouche, wrote: "Investigations into the murder . . . of Swed­ the pressure on the President to approve an INF treaty with ish Prime Minister Olof Paline, now carried out for over a Moscow to be concluded this year became intense. The dan­ year, have called Swedish authorities' attention to the activ­ ger of a zero option sell-out, and its "New Yalta" redrawing ities of neo-fascist groups." , of the map of Europe in Moscow's favor, is again very much Which "neo-fascist" gr()UP Izvestia had in mind, was alive. unmistakably communicated by attacking "those circles who This brings us to April 21, and the latest Soviet slander last year blamed Palme for trying to 'sell out Sweden to the barrage. Radio Moscow reactivated the Palme assassination USSR. '" This was the phrase carried in earlier 1986 Soviet slanders against LaRouche with broadcasts beginning at 3 slanders against LaRouche and the Swedish EAP.

64 National EIR May 1, 1987 cooperation and understanding, and a lessening of interna­ tional tensions, for example, in the Middle East. At the same time, the Kremlin has offered a number of new arms control proposals and removed some obstacles from others . These proposals appear designed to further public perceptions of the Soviet Union as peaceful in its intentions and willing to negotiate. What is behind all these calls for openness? Are we really Cap: Don't trust seeing something different? Or does this public "offensive" have a somewhat more sinister cast? . . As a result of the systemic problems of Soviet society, Russian 'openness' Moscow today has been unable to adapt its economy to ab­ sorb high technology. Because of what they see and what Remarks prepared fo r delivery by the Honorable Caspar they have stolen, the Soviet leadership recognizes that they Weinberger, Secretaryof Defense, to the NavyLeague of the are falling further and further behind the West in almost every United States, Washington, D.C., Thursday, April 16, 1987. measure of technological competitiveness. A most essential element of current Soviet strategy, then, is to lessen tensions Openness: theirs and ours with the West and thereby soften Westernresistance to shar­ . . . [T]wo aspects of Soviet political behavior have be­ ing with them the modem technologies which they so des­ come apparent to anyone who is willing to learn: First, the peratelyneed for economic modernization.... Kremlin, under General Secretary Gorbachov, has under­ This Soviet strategy also hopes to decelerate the pace of taken a major campaign of "openness" or what they call technological modernization of the West's military capabil­ "glasnost." They have publicized a number of seemingly ities, and especially they hope to kill our Strategic Defense very radical initiatives ostensibly designed to liberalize their Initiative before we can deploy. Their goal is to appeal to society and to stimulate better relations with the West. But at wishful, detentist elements in the West, by posing the rhetor­ the same time, a second, more sinister and far more danger­ ical question: "Why should you spend such burdenl'omesums ous element of Soviet behavior is equally apparent. That is of money when we are slowing the rate of military build­ the continuation of a massive Soviet espionage campaign, up?" Not surprisingly, Mr. Gorbachov's speech included a which persists on a heavy scale here in the United States, in plea to "demilitarize the world." Finally, this Soviet strategy our diplomatic properties in the Soviet Union, and elsewhere deliberately is designed to make it far more difficultfor those throughout the world. This espionage campaign is designed of us in the West who strongly advocate the strengthening of to penetrate our most secure communications systems, steal our defenses .... our most secret plans, acquire our most important technolo­ For Mr. Gorbachov's plan to be successful, for the new gies, and, most ominously, to give the Soviets a decisive spirit of "glasnost" to work, for the Soviets to acquire and strategic advantage for surprise in the event of conflict. The apply more of our new technologies to their modernization, American public must interpret Soviet public statements and and, most important, for the Soviets to ensure they will keep the ongoing Soviet public relations campaign to demonstrate their military advantages secure during this process, they a most un-Soviet-like openness, in light of their massive must know what the West is up to in order to compete. They espionage campaign .... must know our plans and policies. They must know and try . In February of this year, General Secretary Gorbachov to influence our positions on such sensitive issues as arms addressed a so-called peace conference in Moscow. At this control and our military programs. And, in the event of con­ conference, politicians, scholars, journalists, and other glit­ flict, they would want to administer a fatally disarming blow terati gathered from around the world with free transportation to us with little prospect of danger to themselves. provided by the Soviets' public relations apparatus, for what In their own policy councils the Soviets refer to us as the Mr. Gorbachov terms a "forum . . . of world opinion. "In his "main enemy." As a result of this perspective, which I believe openingremarks , Mr. Gorbachov called for a broad "democ­ is a far more accurate assessment of the way the Soviets really ratization" of Soviet society. In this call for "openness," he view the West than many of our people view the Soviets, stressedthat his desire to make the Soviet Union better would they have mounted a massive espionage campaign against hurtno one, with only the world gaining from this effort . The the United States and every other Western democracy. It General Secretary then went on to catalogue the seemingly extends from the roof of their embassy in Washington, to radical changes in Soviet internaland externalpolicies which Silicon Valley in California, and from the administrative would implement "openness." He stated that revolutionary office of one of our aircraft carriers to some of the most changes were occurring in the Soviet Union, including great­ sensitive rooms in our embassy in Moscow. They have sto­ er personal freedoms. He also urged increased international len, they have seduced, and they have bought some of our

EIR May 1, 1987 National 65 most sensitive secrets. considered the Walker operation to be the most important Soviet espionage is not new. It is, rather, the product of operation in their history. The information stolen by Walker the Russian past, which, since the time of Peter the Great, enabled the KGB to decipher more than 1 million messages. has demanded absolute security. Every Western nation has Averaged over John Walker's career, this equates to Soviet felt the outrage of arrogant, intrusive Soviet espionage .... decryption of more than 150 messages a day. The. Walker Our democracy . . . depends on continuous criticism and case was handled by Department Sixteen of the First Chief the clash of ideas; on tolerance of different opinions and Directorate of the KGB , which handles only the most sensi­ ideas, however unpopular or absurd or radical; and on open tive exploitation of communications. So important was the and spirited debate . This democratic debate, in tum , depends Walker ring to the Soviets that KGB officers were assigned on the widest circulation of news, information, and opinion to the Soviet embassy in Washington solely to receive the from all sources, and on the presumption that until proven information Walker was paSISing on to them. The KGB be­ otherwise, all participants are people of good will and honest lieved that the information obtained from Walker would have intent. been "devastating" to the United States in time of war. This There is, nevertheless, a dangerous tendency in the West Soviet intelligence operation ranks as one of the greatest to disregard the explicit evidence of Soviet espionage, as espionage losses in intelligence history. exceptions to the rules by which nations conduct their affairs, John Walker's greed provided the Soviets the keys to our or as just one of the games all nations play with one another. message encryption systems, which revealed to the Soviets Indeed, particularly egregious acts of Soviet espionage are our future plans, ship locatibns and transit routes, military frequently offset with timely supposed revelations, by the operations, intelligence activities, and the information on Soviets and those willing always to believe the worst about which we based our intelligence judgments. The Soviets America, of seemingly analogous Western acts. All toooften gained access to weapons and sensor data, naval tactics, carefully chosen Soviet commentators are given direct access terrorist threats, surface, submarine and airborne training, to U. S. television audiences immediately after the revelation readiness, and tactics. Most dangerously, they may easily to explain the Soviet case. While advertisedas "independent, have learned how we might' plan to employ the U.S. Navy non-affiliated experts" or "newsmen," they arein reality hand­ worldwide in the event of crlsis or conflict. picked state employees ....[M]ili tary attaches at an em­ John Walker's violation, over almost two decades, of bassy are there to discover all they can about their host na­ every value this nation holds dear, provided the Soviets in­ tion's armed forces, and that their inquiries will probably not sights into the very heartof Our nation's political and military be limited to officialchannels or reference books. Similarly, objectives. The information he furnished, as well as that diplomats assigned to embassies, consulates, and interna­ stolen by his friend Whitwotth and his son, Michael, provid­ tional organizations like the United Nations are expected to ed the Soviets with sufficient data to permit them to gauge conduct the affairs of state in accordance with acceptable the true capabilities and vulnerabilities of the U.S. Navy. We standards.But there is a world of difference between this have clear signals of dramatic Soviet gains in all areas of diplomatically sanctioned activity, and the KGB's undermin­ naval warfare , which must mow be interpreted in light of the ing the prestige of diplomacy by systematically staffing their Walker conspiracy. Beyondiany doubt, they gave the Soviets embassies and legations with trained spies, whose chief oc­ an appreciation of our technological superiority, and the mo­ cupation is the subversion and bribery of citizens of their host tivation to improve dramatically and positively their military country. posture with respectto U.S . capabilities . And the acquisition Similarly, as the Soviets know, the United States and of our technology to improve their military posture is one of other nations of the West give great access to journalists. the goals of their "glasnost" campaign. Here in Washington, Soviet journalists-an oxymoron if I While the Walker conspiracy was a traitorous violation have ever heard one-have always been given broad access of the trust we place in our fellow Americans, the massive to Congress and the Pentagon, and the White House press Soviet intrusion into our embassy in Moscow violated the rooms . In the Soviet Union, our journalists, who are anything established rules for the way nations conduct themselves. but governmentemployee s, are harassed and arrested. What is especially revealing about this Soviet intrusion into The freedoms of Western democracies are based on the our embassy, which is by treaty inviolable for the nation moral principle that the conditions of man will be improved which occupies it, is its massive nature . It seems to me to be only by the free clash of ideas or ideas expressed and that quite comparable to Iran's actions in seizing our embassy in only from this freedom will truth emerge. But the sense of Teheran. But as has been the case of Soviet disregard for trust in our fellow man on which this is based can become a other treaties-certain key provisions of the SALT II and dangerous vulnerability when it is betrayed. Nowhere has ABM treaties come immediately to mind-the Soviets seem this been more evident than in the John Walker spy case. . . . to believe that diplomacy is merely another form of espionage The harm caused to our national security by the Walker or at least a cover for it, aM that espionage is the rightful spy ring is of the gravest nature . We now know that the KGB adjunct to diplomacy. . . .

66 National EIR May 1, 1987 Eye on Washington by Nicholas F. Benton

Astrodome"). The substance of his re­ Afghanistan last year. Your own pub­ marks was that U.S. administration lication, Red Star, admits now that policy is based on a will to maintain a you have deployed an operational anti­ strategic preponderance, or superior­ satellite (AS A T) capability. Is this not Pentagon report ity, and that this is behind the push for true? the SDI. This must be abandoned, he Trofimenko became enraged. "As 'horseshit': Soviet argued, for arms control to succeed. to thisSoviet MilitaryPower you speak Dr. Henry Trofimenko, a spokesman Rogov followed Trofimenko by of, this is horseshit," he snorted . "It is of the Soviets' U. S.-Ca nada Institute , enumerating the specific proposals that public relations," he growled, "It is was provoked by this reporter into ac­ Gorbachov had set forth to Shultz in not substantiated." cusing the Pentagon's annual Soviet Moscow in the "spirit of new thinking Comrade Rogov tried to salvage Military Power report of being that now exists in Moscow. " glasnost with a little levity. "You "horseshit" before a stunned audience Sonnenfeldt and Garthoff read know," he chimed in, "last year's edi­ of 150 and national C-SPAN cameras written statements in monotones that tion of that report was printed in Rus­ during the plenary session of the an­ had little apparent relevance to the is­ sian , and my young son was reading a nual International Studies Conference sues at hand. copy of it, and he came to me and said, here April 17. I led off the question period with a 'Daddy , now I know we're number­ Trofimenko flew into a rage when three-part question, which drew out one!'" Nobody laughed. I quoted from the 1987 edition of the revealing responses from the two So­ Trofimenko was now strident. "As Pentagon report to challenge some ab­ viet spokesmen: to the idea of military supremacy, it is surd statements he made about arms 1) Did the statement by Soviet Dr. true , of course, that this was our doc­ control during his speech . Zhdanov in the March 19 Izvestia, trine at a time when we were faced Testing his skills at the new Soviet calling for a cooperative, crash effort with an overwhelming U.S. superior­ policy of glasnost, which is supposed to find a cure for AIDS , represent of­ ity, surrounding us on all sides. But to include smiles and jokes, Trofimen­ ficial Soviet policy? Trofimenko an­ war-winning doctrines tend to be ko proved he still has a long way to swered scornfully, "I am not a medical adopted when nations feel they have go. He was on a panel with a col­ expert, but lam sure that Dr. Zhdanov no possibility of winning. When that league, Sergei Rogov , and two U.S. meant what he said. We, of course, do is not the case, they stop talking about counterparts, Helmut Sonnenfeldt and not have any significant problem with it. " Raymond Garthoff, who did their best this virus in the Soviet Union, but it is 3) If you were a European nation, to encourage the congenial mood that a very serious matter, and, of course, what would you think of a nuclear-free characterized Soviet leader Gorba­ we would cooperate . I believe there is Europe (as Gorbachov proposes) giv­ chov's recent meeting with U.S. Sec­ already some cooperation with the Eu­ en the massive Soviet conventional retary of State Shultz in Moscow. ropeans, and it would be good to work force advantage bearing down on you? While both Sonnenfeldt, who with the Americans, too ." It was Rogov's tum to get agitated. worked under Henry Kissinger at the 2) You claim the United States "First you complain that we have in­ National Security Council and State seeks superiority, yet Soviet military termediate-range missiles, and we Department in the 1970s, and Gart­ doctrine from Sokolovskii to Ogarkov agree to remove them. Then you com­ hoff, who is a "State Department lib­ is a "war-winning" military doctrine, plain about short-range missiles, and eral" and former ambassador to Bul­ and U.S. Defense Secretary Weinber­ we agree to remove them. And what garia, sought to accommodate the So­ ger, when he released the latest edition do you do? Now you complain about viet panelists' attempts at glasnost, of Soviet MilitaryPower, said the So­ conventional forces." they could not keep the Russians' viets have not just violated, but broken The encounter emboldened two boorish totalitarian personalities from out of the Anti-Ballistic Missile others who had been hidden in the pre­ erupting. (ABM) treaty , with 17 years of re­ dominantly liberal audience to follow Trofimenko's opening speech was search into lasers, the deployment of me to the microphone and confront the salted with weak attempts at humor, battle-management, phased-array ra­ Russians. Glasnost may have worked especially ridicule of the Strategic De­ dars across the U.S.S.R., and battle­ on Shultz , but it became a bust at this fense Initiative (he called it the "ideal field lasers that were seen in action in affair.

EIR May 1, 1987 National 67 Congressional Closeup by Ronald Kokinda

Byrd, Dole, Hollings rip tion of existing treaties; the need for and were implanted with Soviet elec­ 'cosmetic' INF agreement verification; and "the maintenance of tronic listening devices. A presiden­ Senate Majority Leader Robert Byrd the strongest U.S. technological base tial team is currently evaluating (D-W.Va.), Senate Minority Leader possible. It should be remembered that whether the building will have to be Robert Dole (R-Kan .), and Sen. Er­ the main thrust of the Soviet Union in torn down and rebuilt. nest Hollings (D-S .C.) all took to the essentially everyrecent arms treaty has The move also follows criticism Senate floor on April 21 to caution been to stop or slow down American thatthe Soviets were allowed a choice, against a hasty anns-control agree­ technology. " high-elevation location in Washing­ ment on intermediate-range nuclear Dole demanded that all short- and ton, D.C. by Henry Kissinger under weapons (INF). Their statements medium-range INF weapons be in­ Nixon, for their new embassy, giving echoed many of the concerns raised cluded in any agreement, and it should them sweeping electronic surveillance by U.S. NATO allies. eliminate such weapons entirely to en­ capabilities. Byrd cited Gen. Brent Scowcroft hance verification, (the zero-zero op­ The resolution directs the Secre­ who had written the day before in the tion). tary of State to notify the Soviet Union Washington Post that the "administra­ Sen. Sam Nunn (D-Ga.) gave a within five days that we are pulling tion erred in the first place by propos­ speech in Brussels, however, propos­ out of the agreement signed on May ing the zero option in 1981." "Such an ing that NATO consider major new 16, 1969 , the "Reciprocal Allocation agreement may posepolitical risks for anns-control proposals, obviously to for Use Free of Charge of Plots of the NATO Alliance," Byrd said, ease the way to an INF agreement. Land in Moscow and Washington," pointing out Soviet conventional su­ Nunn suggested that NATO renounce and renegotiate where the embassies periority . "Without the deterrent first use of nuclear weapons in ex­ will be. "The effect of my legislation pledge of nuclear weapons, and with­ change for the Soviets pulling their is to wipe theslate clean," Broomfield out the credible threat of NATO first tank armies away from the front, and said. use of nuclearweapons in the event of that 2 U.S. divisions be pulled out of Bwomfield said that recent events a Warsaw Pact invasion, our Europe­ Europe in exchange for roughly 11 indicate that "we are facing a security , an allies could be subjected to intense Soviet divisions pulled out of East diplomatic , and intelligence disaster political pressure." Germany, Poland, and Czechoslova­ that is unparalleled in recent histo­ "I would caution the administra­ kia. Moving Soviet troops a few ry. ... I have introduced legislation tion against racing into an agreement hundred miles is obviously easier than to counter the Soviet electronic sur­ which is cosmetically attractive but returning U.S. troops and equipment veillance of the U. S. embassy in Mos­ works against the cohesion and stead­ to Europe. But such proposals fit in cow and to reverse the unsettling and fastness of the Atlantic alliance," Byrd with Nunn's troop pullout, decou­ flippant attitude of the bureaucracy to said. ''To have a chance for Senate pling initiatives. the threat of the Soviet espio­ approval, any agreement must ad­ nage •..." vance our national security, and must Broomfield may attempt to add the make Europe more secure." resolution to the State Department au­ Hollings warned that racing to an Broomfield: Abrogate the thorization which is ready for floorac­ agreement in the next 18 months was embassy accords tion. "not either in our best interestsor that William Broomfield (R-Mich.) intro­ of our allies." Our deterrent relies on duced House Joint Resolution 230 on both conventional and nuclear forces, April 6 toterminate the current U.S.­ and ifwe reduce our nuclear capabil­ Soviet agreement allowing each na­ Glenn, Humphrey, ity, we must be prepared to build up tion a new embassy. Markey put NRC under fire conventionally. "I seriously question The move follows extensive criti­ At the moment that the Nuclear Reg­ whether we are prepared to meet such cism of the StateDepartment handling ulatory Commission has been nearing needs," Hollings said. of the construction of the new U.S. startup authorization for the Sea­ He pointed out three major obsta­ embassy in Moscow where portions of brook, N.H. and Shoreham, N.Y. nu­ cles to any agreement: Soviet viola- the building were constructed off site clear plants , a gaggle of anti-nuclear

68 National EIR May 1, 1987 congressmen have launched a wave of R&D facility proposed growing interest relating to all areas attacks against the NRC. The same for highway building of the construction industryon the Hill. left-right combination of liberal envi­ Rep. Dan Glickman (D-Kan.) intro­ ronmentalistsand fiscal conservatives duced H.R. 1621 on March 24 to pro­ that united to kill the Clinch River vide a research and development fa­ Breeder Reactorand nuclear power in cility for materials related to bridge Senate committee rejects the United States, is once again in evi­ and highway construction. funds cut to Pakistan dence. The bill would direct the Secretary The Senate Foreign Relations Com­ At a House Energy and Commerce of Transportation to put $30 million mittee voted 11 to 8 on April 23 to subcommittee hearing on April 21, per year for three years into a fund, in reject a cut in aid to Pakistan, an im­ Rep. Ed Markey (D-Mass.), one of consultation with the National Re­ portant U.S. ally. the more notorious anti-nuclear envi­ search Council, the National Acade­ The vote was a key rejection of ronmentalists, accused NRC execu­ my of Sciences, and the National efforts carried on by the anti-nuclear tive director Victor Stello of "coachi­ Academy of Engineers, "to establish and pro-disarmament crowd to penal­ ng" the owners of the Seabrook nucle­ a highway research and development ize Pakistan for reportedly attempting ar plant on how to get an operating program focused on increasing the to acquire nuclear weapons. Both the license and that he "virtually im­ quality and durability of high-cost Senate Foreign Relations and the plored" them to submit a lO-mile highways. House Foreign Affairs Committees evacuation plan. The bill specifically refers to seek­ have previously voted to warn Paki­ NRC Chairman Lando Zech told ing ways to improve asphaltic mate­ stan that an aid cutoff would have "adv­ Markey and the committee that Stello rials, concrete, the long-term perfor­ erse consequences" on its relationship was simply telling the utility "the facts mance of paved surfaces, procedures with the U.S. of life," that the NRC was not going for administration and control of In the debate, Sen. Jesse Helms to approve a I-mile evacuation plan as maintenance, methods to reduce the (R-N.C.) warnedthat an aid cut "und­ the owners have been fighting for . use of salt on highways and chloride oubtedly would be seen by Pakistan as Sen. Gordon Humphrey (R-N.H.) contamination of bridge decks. a hostile act" by a formerly reliable blasted the NRC for allegedly at­ "It has been estimated that rela­ ally. tempting to water down the emergen­ tively small technological improve­ Two liberal Democrats joined Re­ cy evacuation planning, complaining ments made in such materials can save publicans in the vote. Sen. Chris Dodd that the indication that evacuation not billions of dollars and more impor­ (D-Conn.) rejected the aid cut on the only can but "will" take place is miss­ tantly, lives," Glickman said. "The basis that such cutoffs arenot effective ing from the NRC's statement. The National Research Council has esti� policy. It "hasn't worked with India NRC rule would make an evacuation mated that nearly 40% of our nation's and won't work with Pakistan," Dodd plan acceptable if protective measures bridges are nearing the end of their 50 said. He has said that encouraging a can be taken if there were "reasonable year design life, and over 20% have warming of relations between India State or local governmental coopera­ already been identified as structurally and Pakistan is the best way to ap­ tion . " deficient. By 1995, an estimated proach the proliferation issue. Sen. Sen. John Glenn (D-Ohio), called 26,000 miles or 56% of our interstate Kerry (D-Mass.) later told press that for the resignation of another NRC highways will need resurfacing or ma­ if Pakistan acquires a nuclear device, board member, Thomas M. Roberts . jor repair work," he said. The FHA U.S. aid would be cut off anyway. NRC documents showing safety de­ recently told Congress that $50 billion Sen. Alan Cranston (D-Calif.), a fects at the Waterford Nuclear Plant is needed, $13 billion of that imme­ major advocate of cutting $100mil­ near New Orleans were leaked from diately, to ensure the safety of the na­ lion out of the $625 million in aid to Robert's office and found in the com­ tion's bridges. Pakistan proposed for FY88, claimed pany's files. "I have done no wrong, Despite the huge size of the con­ that the Pakistanis were "breaking and I have no intention of resigning," struction industry, it has had virtually statements made to the President and Roberts said. "I welcome a review of no R&D program. The Glickman bill moving forward to a nuclear weapons these matters by the Justice Dept." is a small part of more widespread and capacity."

ElK May 1, 1987 National 69 NationalNews

tant social program is a sound economy. If then a congressman, called a press confer­ that's wrong, nothing else is right," he said. ence at the American embassy to declared, "You limit yourself in terms of security in­ ''The people who should be in jail here are Administration sells terests if you limit yourself in trying to meet Henry Kissinger and David Rockefeller. " the areas of human needs. So that has to be Hansen's recent campaign to expose the computers to Iran the issue." horrible I=onditions in the nation's prisons, The Reagan administration has okayed the A Dukakis candidacy is obviously a including the potential spread of AIDS, has sale of computers to Iran. Despite objections stalking horse. Foreshadowing his possible put him nose-to-nose with the Justice De­ by Defense Secretary Caspar Weinberger, acceptance of a draft candidacy, Kennedy partment and what he calls "their foreign the administration gave finala pproval to sell said, "These days, I don't think about run­ style of law enforcement." $900,000 worth of equipment containing ning for President any more ...but I don't He told his supporters in a recent appeal, U.S.-made computers to Khomeini's out­ think about it any less either. " "The threat of jail doesn't frighten me , but law regime, say news reports of April 22. the threat of damnation for cowardly com­ Administration and computer industry promise of God's principles does .... officials said that the National Security Heavy-handed government might bruise us Council, which had been asked to mediate a up and often throw us in jail, but that doesn't dispute over the sale within the administra­ stop freedom-loving citizens from standing tion, gave the go-ahead for the sale in mid­ up and fighting back." Ri hts investi ator April . g g Secretary Weinberger argued that the protests Hansen arrest United States should not be providing any A leading Indian lawyer, S.C. Birla, has aid whatsoever to the Iranian regime, but sent a telegram to the White House protest­ Commerce Secretary Malcolm Baldrige and ing the arrest of former U . S. Congressman PANIC group files Secretary of State George Shultz approved George Hansen (R-Idaho). Hansen, who of the roposedsale , and won the day. Shultz p calls himself a "political prisoner," is the for material's return and Baldrige argued that the com uters in­ p author of To Harass Our People. an expose Robert Levy, attorney for California's Pre­ volved had no military applications. of the way the Internal Revenue Service vi­ vent AIDS Now Initiative Committee There were no immediate re orts on p olates fundamental constitutional rights. He (PANIC), filed a Writ of Mandate April 17 whether Lt. Col. Oliver North was consult­ served six months in federal penetentiary with the Superior Courtof California to de­ ed. last year, after being prosecuted by the Jus­ mand the returnof materials seized in a raid tice Department for not listing his spouse's on PANIC offices by state authorities over income on his own financial disclosure­ five months ago. The Nov. 19, 1986 raid thesame "violation" of income reporting for followed the organization's success in plac­ which Geraldine Ferraro was cited but never ing on the state's November ballot the fa­ prosecuted. mous "Proposition 64,"mandating public­ Kennedy endorses Hansen was arrested for violating the health measures against AIDS . provisions of his parole the weekend before The court fight now is basically over Dukakis, attacks SDI Easter, six days before a scheduled meeting whether law enforcement authorities canhold Sen. Edward Kennedy (D-Mass.) endorsed with the parole board to discuss his protest such materials indefinitely while charging Massachusetts Gov. Michael Dukakis for of the highly restrictive provisions. His vi­ no one with a crime . the Democratic Party 's presidential nomi­ olation consisted of leaving the Washing­ Attorney Levy's action contests an ad­ nation on April 16, while speaking to the ton, D.C. area for a speaking engagement. verse ruling a week earlier that would tum World Affairs Council in Los · Angeles. After meeting with Hansen, S.C. Birla, over PANIC materials now in possession of Kennedy also said Democrats should op­ chairman of the All-India Bar Association, the state to Los Angeles District Attorney pose early deployment of the Strategic De­ pledged to investigate Hansen's case, com­ Ira Reiner's office for "continued investi­ fense Initiative. menting that it appeared to be "another case gation.'· Judge Harold Schwab had denied a "I will work to see to it that the Demo­ of political harassment againsta dissident in motion for return of property, despite the cratic Party and the Democratic platform of this country. " Birla is a member of the Com­ argument that retention of the materials for 1988 will repudiate any such deployment," mission to Investigate Human Rights Vio­ fivemonths with no criminal charges is to­ he said. lations in the United States, and has already tally unreasonable and in violation of con­ Kennedy labeled the economy the ov­ condemned political persecution of Lyndon stitutional rights. erriding election issue for 1988. "As Presi­ LaRouche and his associates. The materials were seized by Attorney dent Kennedy used to say, the most impor- During a 1979 trip to Teheran, Hansen, General John Van de Kamp's office, after

70 National EIR May I, 1987 Briefly

• THE SPACE SHUTTLE launch has been delayed again by NASA, what PANIC spokesmen termed a "bogus "AIDS Is More Dangerous Than Nuclear which declared that it cannot meet the investigation" into the method of gathering War," and forecast that it would be the num­ Feb . 18, 1988 due date for the first signatures to place Proposition 64 on the ber-one politicalissue of 1988. Some months post-Challenger launch. No new date ballot. ago, he authored a piece warningthat if gov­ was set. Shuttle program head Rich­ Schwab ruled that he does not believe ernmentinaction continued, there would be ard Truly said it had been decided to that five months is unreasonable as long as vigilante actions, with homosexuals partic­ conduct two major tests before the the authorities have probable cause. He did, ularly targeted. For this, LaRouche was vil­ launch, and they "will result in a new however, stay his ruling for days to allow lified. 10 target launch date ." for appeal . LaRouche's villifiers of thattime are now The Writ filed pA ril 17 makes the point sounding exactly like him. Threemore cases • BRUCE BABBITT, former Ar­ that authorities are clearly reviewing the in point: izona governor and presidential material for months on end, in the absence • AIDS is the number-one threat to the hopeful, told a Cable News Network of a crime, "looking for a crime." Levy con­ national security of the United States, ac­ interviewerA pril 19 that "it might be cluded that if the relief sought is not granted, cording to counterterrorism expert Robert wise" to "seriously examine limited then the California courts are saying that Kupperman ofthe Center for Strategic and proposals" to do something about seized materials can be held indefinitely. " International Studies. In a presentation be­ AIDS, like testing marriage license fore the U.S. Naval Academy in mid-April, applicants. Broad testing, however, he called for an emergency national debate wouldn't survive cost-benefit analy­ and predicted an outbreak of mass vigilante sis, he added. actions against homosexuals and drug ad­ More Wall Street dicts in response to fear of the disease. He • THE PENTAGON is accelerat­ drug busts coming also called for professionals to develop ing a project codenamed "Prome­ medical, security, and political action plans theus" that aims to develop what the There are more big-name drug arrests com­ if civil liberties are to be protected and a Washington Times terms a "nuclear in on Wall Street, according to informed g military state of siege avoided. shotgun." The weapon pinpoints sources. The April 16 arrests of 16 stock • In a New York Times Magazine fea­ warheads during a nuclear attack, and brokers , including a senior partner at Wall ture entitled, "The Terrifying Normalcy of fires an atomic warhead into space to Street's Brooks, Weinger, Robbins, and AIDS," Harvardbiologist Stephen Jay Gould form a killer-barrier to missiles. It Leeds firm, on drug-related charges includ­ announced that AIDS is "potentially the might be ready for the first phases of ing traffickingand insider-trading, is just the greatest natural tragedy in human history," SOl deployment. beginning of U.S. Attorney Rudolph Giuli­ and could kill off"over a quarter of us. . . . ani's crackdown, EIR has been told. AIDS ranks with nuclear weaponry as the • U.S. EMBASSIES in seven The April 16 arrests were preceded by a greatest danger of our era. . . . The expo­ Mideast nations and the Soviet Union three-year investigation into the connection nential spread of AIDS underscores the trag­ were designed by firms that had no of various Brooklyn mafia families to Wall edy of our delay in fighting one of nature's security clearance, says a report by Street's top brokers , said the source. plagues." the General Accounting Office. The Related is the New York Police Depart­ • "AIDS is going to end up changing GAO also indicated that the State De­ ment's announcement that 114 drug dealers America and American politics," the Phil­ partment "did not know how many had been arrested over a recent period in adelphia Inquirer quotes California assem­ copies of blueprints were in existence streets, parks, and bars near Wall Street. blyman Art Agnos, a furious opponent of for their overseas projects. " The sweep will allow prosecutors to tum LaRouche on the AIDS issue. "At first we numerous users and dealers into informants, didn't do anything becausewe thought AIDS • SEN. WARREN RUDMAN thereby reaching into the higher levels of was going to go away or the magic bullet wants former CIA Director William Wall Street. would show up. AIDSis n't going to go away. Casey examined by a doctor to deter­ Not next year, not in 5 years, not in 25 years mine his precise medical condition and maybe not in 50 years. It's no longer before congressional hearings on the projections. It is now a full-blown catastro­ Iran-Contra affair begin. He says he phe, right now ....From now on AIDS believes Casey is truly ill; "I don't AIDS: They're all will be mainly a political story. The major think anybody has any doubt, but I debate, I predict, will be cost ....By next think . . . since Casey potentially is sounding like LaRouche year voters may very well be choosing can­ such an important witness . . . there More than a year ago, presidential candidate didates based on their position on those par­ ought to be some corroboration." Lyndon H. LaRouche, Jr. coined the slogan ticular issues of costs. "

EIR May 1, 1987 National 71 Editorial

An op en letter to the President

To: President Ronald Reagan, AttorneyGeneral Edwin service in time of War or in p\lblic danger; nor shall any Meese person be subject for the same offence to be twice put in Sirs: jeopardy of life or limb; nor shall be compelled in any Criminal Case to be a witness against himself, nor be The headquarters and officesof this publication have deprived of life, liberty, or prdperty , without due process been seized by members of your administration, with­ of law; nor shall private propertybe taken for public use, out any legal justification, grounds, arguments, or court without just compensation. action anywhere in the U.S.A. Such actions are only known to take place in totalitarian states. Article VI Below is the partial text of a document you were In all criminal prosecutions, the accused shall enjoy sworn to uphold when you took your oath of office. the right to a speedy and public trial, by an impartiafjury Read it and weep. of the State and districtwherein the crime shall have been committed, which district shall have been previously as­ Article I certained by law, and to be informed of the nature and Congress shall make no law respecting an establish­ cause of the accusation; to be confronted with the witness­ ment of religion, or prohibiting the free exercise thereof; es against him; to have compulsory process for obtaining or abridging the freedom of speech, or of the press; or the Witnesses in his favor, and to have the Assistance of right of the people peaceably to assemble, and to petition Counsel for his defence. the Governmentfor a redress of grievances. Article VII Article II In suits at common law, where the value in controver­ A well regulated Militia, being necessary to the secu­ sy shall exceed twenty dollaf!!, the right of trial by jury rity of a freeState , the right of the people to keep and bear shall be preserved, and no f�ct tried by a jury shall be Arms, shall not be infringed. otherwise re-examined in any Court of the United States, than according to the rules of the common law. Article III No soldier shall, in time of peace be quartered in any Article VIII house, without the consent of the Owner, nor in time of Excessive bail shall not be required, nor excessive war, but in a manner to be prescribed by law. finesimposed, nor cruel and unusual punishments inflict­ ed. Article IV The right of the people to be secure in their persons, Article IX houses, papers, and effects, against unreasonable search­ The enumeration in the Cqnstitution, of certainrights , es and seizures, shall not be violated, and no Warrants shall not be construed to deny or disparage others retained shall issue, but upon probable cause, supported by Oath by the people. or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. Article X The powers not delegated to the United States by the Article V Constitution, nor prohibited by it to the States, are re­ No person shall be held to answer for a capital, or servedto the States respectively, or to the people. otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the Sincerely, land or naval forces, or in the Militia, when in actual Criton M. Zoakos

72 National EIR May 1, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins Alert twice a week, including periodic reviews of debt, terror­ ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Alert Bulletin appears once a week in the fo rm of a one-page telex message.

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