Books . . . The Immortal Mind of Man

How the Nation Was Won: America's There Are No Limits To Growth by La integraci6n iberoamericana ICien Untold Story; Vol. I, 1630-1754 by H. Lyndon H. LaRoucbe,Jr., 14.95. millones de nuevos empleos para e1 GrahamLowry, 114.95. Just-released in ano 20001 by tbe ScbillerInstitute, witb Basic Economics for Conservative July 1988. From the founding of the sov­ an introduction by Lyndon H. La­ Democrats byLyndonH LaRoucbe,Jr., ereignMassachusetts Bay Colony in 1630, 13.95: Roucbe,Jr., $15.00. In Spanish. Known America's leaders dreamed of forging a throughout the continent as "the Green continental republic that would break the Treason in America, 2nd ed. byAnton Book," this is the most comprehensive grip of European oligarchical power. The Cbaitkin, SJ 1.95. Traces the "family tree" economic study for a uniquely integrated lessons of that fight in New England of treason from the time of the American contionent of sovereign nation-states. shaped the 18th-century strategies of Revolution to the present. Translated and serialized in EIR as "Ibero­ Cotton Mather and his protege Benjamin ModernIrregular Warfare In Defense American Integration: 100 Million New Franklin, whose early career as a repub­ Policy and as a MilitaryPhenomenon Jobs by the Year 2000!" lican intelligence agent is revealed for by Prof Friedricb August Frbr. von der the first time. So are the roles of the bril­ Heydte, witb a foreword by Lyndon H. liant Jonathan Swift, Virginia Gov. Alex­ LaRoucbe, Jr.; 19.95. The first English ander Spotswood and New York Gov. translation of this indispensable manual Robert Hunter, whose policies helped exposing the Soviets' order of battle for ensure the success of the American Rev­ world domination. olution. Derivative Assassination: Who Killed Indira Gandhi? by tbe editors Of Ex­ ecutiveIntelligenceReview, 14.95. What was the U.S.-Soviet intelligence "gentle­ men's agreement" that murdered this world leader?

The PAN: Moscow's Terrorists in FiftyYears a Democrat byHulanJack, Mexico by tbe Mexican Labor Party, 19.95. When HulanJack waselected Bor­ 14.95. ough President of Manhattan, he was the Hostage to Khomeini byRobert Drey­ highest-elected black officeholder in the fuss and Thierry LeMarc, 14.25. Origi­ country, and NewYork City enjoyed un­ nally released the same week as the U.S. precedented growth. The operation that framed him up and tore him from power Dope, Inc.: Boston Bankers and So­ hostages eight years ago, the definitive was designed to destroy the Democratic viet Commissars by tbe editors of Ex­ source book on the geostrategic jokers Party as a constituency-based organiza­ ecutiveIntelligenceReview, 114.95. The who are still playing the "Islamic fun­ tion,in preparation for the Carter-Volcker first edition of Dope, Inc. appeared in damentalist card." years-and beyond. 1978, and exploded the coverup on the $200 billion international dope cartel, St. Augustine, Fadler of European and and sold out in three printings. By the African Civilization, 114.95. Proceed­ time the authors decided to issue a sec­ ings of t\le Sixth International Confer­ ond edition in 1986, Dope, Incorporated ence of the Schiller Institute held in Rome, had grown to $500 billion a year. Now, Nov. 2-3, 1985, to celebrate the 1600th ElR is reprinting the second edition of anniversary of Augustine's conversion to this crucial combat manual for the all­ Christianity. laVishly illustrated in color out war on Dope, Incorporated. and black and white, the book includes speeches in original languages as well as The Power of Reason: 1988; An Au­ English translation. tobiography by Lyndon H. LaRoucbe, Jr., 110.00. Must reading. "I am an 'anti­ Co}onize Space. Open theAge of-Rea­ establishment' figure, which is not pleas­ son 19.95. The proceedings of the Krafft ing to our establishment. Most of the con­ A. Ehricke Memorial Conference held in troversy attached to me by the major June 1985. Speakers included Lyndon news media and liberal factions of our LaRouche and Helga Zepp-LaRouche, Dr. two major parties is simply a desire to Jonathan Tennenbaum, and Dr. Fried­ destroy anyone who is viewed as a se­ wardt Winterberg. rious potential threat to the current pol­ The Hider Book by tbe ScbillerInsti­ Friedrich Schiller, Poet of Freedom, icies and interest of the establishment." tute, edited by Helga Zepp-LaRoucbe, 19.95. New translations of Schiller's So,You Wish To LearnAll About Eco­ 19.95. A devastating expose of the finan­ works, by the Schiller Institute, including nomics? A Texton Mathematical Eco­ cial and oligarchical networks, East and a new verse translation of the play Don nomics by Lyndon H. LaRoucbe, Jr., West, that were behind Hitler's rise to Carlos, Schiller's Letters on Don Carlos, 19.95. power, and are still active today. and hischilling novella, TheGhost Seer.

Order from BEN FRANKLIN Booksellers & Record Shop 27 S. King St., Leesburg, Va. 22075 or call (703) 777-3661 for catalogue information and phone orders. Major credit cards accepted. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. " Editor: Nora Hamerman From the Editor Managing Editors: Yin Berg and Susan Welsh Editoral.Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Uwe Parpart­ Henke, Gerald Rose, Alan Salisbury, Edward he well-deserved defeat of Michael "Mussolini" Dukakis in the Spannaus, Nancy Spannaus, Webster Tarpley, T William Wertz, Carol White, Christopher recent U.S. presidential campaign opens the way to a resumption by White the Democratic Party of pre-1968-72 traditional values-the values Science and Technology: Carol White Special Services: Richard Freeman of the party that brought the United States out of the 1930s Great Book Editor: Janine Benton Depression and rebuilt the national economy, through a strong bi­ Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings partisan consensus on both domestic-economic and foreign issues of national security. INTELUGENCE DIRECTORS: Africa: Mar::; Lalev�e The pivotal figure for bringing that shift about is EIR founder and Agriculture: Marcia Merry Asia: Linda de'Hoyos contributing editor,Lyndon H. LaRouche,Jr. ,the intellectual author Counterintelligence: Jeffrey Steinberg, of the Strategic Defense Initiative. But the Soviet leadership, and Paul Goldstein Economics: Christopher White their friends in the Western financial establishment,are absolutely European Economics: William Engdahl, determined to get rid of LaRouche. This is the subject of our cover Laurent Murawiec lbero-America: Robyn Quijano, Dennis Small Feature this week: the blatantly political indictments of LaRouche Law: Edward Spannaus and his associates, who are about to go on trial in Alexandria, Vir­ Medicine: John Grauerholz, M.D. Middle East: Thierry Lalev�e ginia, on Nov. 21,1988. Soviet Union and Eastern Europe: Our Feature delineates the nature of the "legal" cases in question, Rachel Douglas, Konstantin George Special Projects: Mark Burdman and reports on the impressive lineup of internationally prominent United States: Kathleen Klenetsky individuals who have come out in LaRouche's defense. Further,we INTERNATIONAL BUREAUS: begin in this issue to explore the real object of the anti-LaRouche Bangkok: Pakdee and Sophie Tanapura Bogota: Javier Almario court cases: the Marxist-inspired war to destroy what they call the Bonn: George Gregory, Rainer Apel "authoritarian personality": one who accepts the premise of the Book Copenhagen: Poul Rasmussen Houston: Harley Schlanger of Genesis, that man is charged by God with the responsibility of Lima: Sara Madueiio having dominion over nature. This vicious fraud is taken up in the Mexico City: Hugo LOpez Ochoa, Josejina Me�ndez first of a series of articles by Michael Minnicino, and in a book Milan: Marco Fanini review (page 36) by LaRouche himself. New Delhi: Susan Maitra Paris: Christine Bierre The strategic picture we present is exclusive to us: inside reports Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi from Poland that foresee a fullscale revolt this winter,desperation in Stockholm: Michael Ericson the Kremlin over food shortages, and dangerously stupid efforts to Washington, D.C.: Nicholas F. Benton, William Jones "accommodate" to Soviet demands for trade concessions, by the Wiesbaden: Philip Golub, Garan Haglund U.S. liberal establishment. The dynamic in Asia is reported in arti­

ElR/Executive Intelligence Review (ISSN 0273-6314) is cles on page 9,pages 54-57,and in a special report that encapsulates published weekly (50 issues) except for the second week ofJuly and last week of December by New Solidarity the rapid strategic unraveling of Western interests in New Zealand Intem,ational Press Service P.O. Box 65178, Washington, DC 20035 (202) 457-8840 (page 46). BIIIY1fI"II HetIIIq".,.rs: Executive InteUigencc Review Dumping the liberal values that have led to the current mess is Nacbrichtenagentur GmbH, Postfach 2308, Dotzheimcntrasse 166,0-6200 Wieshaden, Fedcral Republic not a long-range perspective. It is of question of life-and-death ur­ ofGennany Tel: (06121) 8840. Executive Directors: Anno HeUenbroicb, gency for the weeks ahead,as the future of the United States goes on Michael Ucbig trial in Alexandria, Virginia. I. De...,..,: EIR , Rosenvacngets Alle 20,2100 Copenhagen OE, Tel. (01) 42-IS-OO •

I. Muil:o: EIR, Francisco Dlaz Covarrubias S4 A-3 Colonia San Rafael, Mexico DF. Tel: 70S·129S. J.",. .ubleription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34·12 Takatanobaba, Shinjulru-Ku, Tokyo 160. Tel: (03) 208-7821. Copyrigbt C 1987 New Solidarity Intemational Press Service. A1ffigbts 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-$12S,6 months-S22S, I year-$396, Single iasue--$IO Postmaster: Send all address changes to ElR, P.O. Box 17390. Washington, D.C. 20041-0390. TIillConteDts

Book Reviews Science & Thchnology Economics

36 In Anthony Blunt, we 16 Biotechnology lab opens 4 The central banks begin trust new doors in agriculture their power push Lyndon H. LaRouche, Jr. reviews A new laboratory at Disney The post-election organized run Mask of Treachery by John World's EPCOT Center will show against the dollar has begun, to Costello. the public the potential for new force the new administration's technologies in agriculture, reports submission to foreign central bank 40 Deadly poker, or we bet Marsha Freeman. directives-but such pressure your life games could have unforeseen, catastrophic effects on the entire Dr. John Grauerholz looks at Gus financial system. Sennos's Doctors of Deceit and Correction: the AIDS Epidemic: A View From Due to a confusion in bank the Inside. names, an article on banks 6 Will Bush bail out Mikhail under investigation for drug-money Gorbachov? laundering out of the October 42 The new Soviet order of . indictment against Bank of Credit battle 7 Poland moves toward and Commerce International winter explosion A review of Alexander Alexiev's (BCCI), in Vol. 15, No. 45, page Inside the Soviet Army in 67, EIR mistakenly misidentified Afghanistan. Florida National Bank of Miami as 8 Currency Rates the bank which handles the finances of the ADL Foundation, 9 The Russians gaze at and has fonner Nugen Hand unwilling Asia Departments Director Donald Beasely on the board of directors. That bank is 11 Mexican oilworkers "back City National Bank of Miami. 12 Andean Report debt moratorium Florida National of Miami, Venezuela sells its oil future . however, has indeed found its 13 Agriculture records subpoenaed by the U.S. USDA: "Let them eat turkey."" 60 Report from Rio Customs Service, the Wall Street A social pact with usury. Journal reported Oct. 31, 1988, because two of the top cocaine 14 Business Briefs 61 Report from Bonn runners indicted, Roberto Alcairo and Gonzalo Mora, used the bank A word on KristaIlnacht to launder their money. The BCCI remembrance. indictment named Alcairo as a AIDS Update major smuggler and money 72 Editorial launderer, and describes Mora as 40 Deadly poker, or we bet Gennany under siege. heading the Medellin Cartel's your life laundering operations in Florida, New York, and California. 62 Australia to test everybody for AIDS

70 NYC gives free needles to drug addicts Volume 15 N1..J.mber 46. Novemberl8. 1988

Feature International National

44 Gorbachov admits food 64 Anti-Dukakis vote elects crisis is desperate George Bush If the Russians cannot intimidate Dukakis came out of the the rest of the world into providing Democratic convention in late July them with sufficient food on their with a 17-point lead over Bush, terms, they could strike out but that evaporated when the militarily to secure supplies, question of whether Dukakis was perhaps even into Western Europe. mentally capable of holding the highest office in the land broke Ly� H. LaRouche. Jr. addresses a press conference at the into the international media. National Press Club in Washington. D.C. on Oct. 11. theday 46 New Zealand mmoves of h.�� arraignment. toward Soviets Whatever Moscow's fishing for in 66 How did Dukakis and the 24 The third trial of Socrates: the South Pacific, it is not fish. Demmocrats lose? U.S.A. vs. Lyndon In the past 50 years, only FOR's LaRouche 48 Israel: another Democrats have actually represented the necessary alliance Mter their Boston effort foundered fundammentalist state in the of minorities, labor, and farmers . on a mistrial and an informal jury Middle East? Today's Democrats represent vote to acquit all defendants , the anything but-with the exception Justice Department is trying it all 49 Runcie drops his mmask, of the LaRouche wing, which over again in Alexandria. Why go c1aimms Nazis were consolidated its 25-35% support to such lengths to destroy Christians among voters. statesman LaRouche? Because, to the U.S. political establishment, 50 Colommbian President LaRouche is not just another 68 Will the United States still politician, but the "modem Barco surrenders to narco­ be capable of a strong Socrates." terrorists defense? A report on a conference at the 28 The "authoritarian 52 Argentine presidential race Center for Strategic and personality": an anti­ begins ammid general International Studies. Western hoax disgust with AIfonsin The Marxists from the Frankfurt 70 National News School have devised a powerful 54 Seoul's northern policy weapon for cultural warfare . . rests on U.S.-Korea alliance 32 International figures speak out against political 56 Indo-Soviet relations: Is prosecution there a sea-change The "Declaration of Honor" comming? appearing in major newspapers, and some personal statements. 58 Beauty of lower tuning draws new endorsemments

59 Syrian drug mmafia tried to buy Lebanon

62 International Intelligence �ITillEconomics

Central banks begin post-election power push

by Chris White

Technically, it actually started the week before the election and the world, there is the underlying reality of the bank­ in the United States, but that hardly matters. The central ruptcy of the dollar-based credit andbanking system. Whoever bank-organized run against the dollar has begun, and by the now chooses to play such pressure games, is also taking the end of business on Nov. II-Veterans' Day-had already lid off a Pandora's Box of monetary and banking crisis po­ sent the currency sliding to a lO-month low against the Jap­ tential, accumulated during the last year and more of buying anese yen and a 5-month low against the West German mark. time until the U. S. elections were over. There are no surprises here for EIR readers. The central bankers' plot against the U . S. currency and credit system had Deficitreduction, tax increases beentelegraphed since the meeting of the International Mon­ The first side was represented by the slew of conferences etary Fund in West Berlin at the end of September. Now, it's held and press statements issued in the aftermathof the elec­ happening. Organized out of the European money centers­ tions. In the United States, Bill Bradley, the New Jersey London, Frankfurt, Switzerland-the attack is proceeding senator, and Paul Volcker, the cynical former Federal Re­ on three levels. Euromarket interest rates, such as the three­ serve chief, laid out the perspective to a gathering of-inter­ month Euro-deposit rate, are being increased, to organize a national investors convened by the American Stock Ex­ secondary flow out of dollar instruments, and begin a new change. Trilateral Commission member and one-time Carter roundof pressure against U . S. equity markets. administration teeny-bopper C. Fred Bergsten presented the By the close of business in London on Nov. 11, the three­ bankers' austerity demands in the form of a new study pro­ month Euro-deposit rate had reached 9%, roughly the same duced by the Washington, D.C.-based InternationalInstitute as the then-quoted yield for the 30-year U.S. long bond, and for Economics. for the first time in months, only 1% under the U.S. prime Attempting to prove that Pythagorean doctrines of rein­ rate . The dollar was trading near its postwar low range against carnation do actually represent something, this outfit in an the Japanese yen at just over 122, and at about DM 1. 73. The earlier life used to be known as the Creditors' Committee, New York Stock Exchange's Dow Jones Index, shedding and before that as the Ditchley Group. Now representing more than 47 points in the day's trading, lost more than 70 hundreds of large international banks, its views, even if rep­ pointsfor the week. According to the New York Times. this resented by the unfortunate Bergsten, should be taken as is the biggest post-election weekly loss since Harry Truman's seriously as a doctor would take the ravings of a psychopath 1948 victory. who needs restraint. Two sorts of developments have been set into motion. Bergsten identified the next six months as critical for the On the one side, politically, the central bankers' plot against United States. Either the new administration quickly puts the dollaris a pressure tactic , designed to subdue the incom­ together a package of deficit reduction and tax increases ing administration of George Bush, and force that adminis­ acceptable to the international financial community, or there tration's submission to central bankers' will. On the other will be an explosion. Bradley told the international investors side, beyond the politicalgames with the existence of nations at the American Stock Exchange the same, adding the rider

4 Economics EIR November 18, 1988 that the new administration could expect no cooperationfrom Dutch Finance Minister Onno Ruding and Hans-Jorg Rudloff the Democrats in Congress in elaborating such a program of fromCredit Suisse, that the United States financeits overseas cuts acceptable to the international bankers. Volcker warned debt by issuing bonds denominated in foreign currencies. of the limits to foreign creditors' patience, which could per­ That way, Washington no longer has the option of de,yaluing haps produce a flight out of dollar assets if the same kind of� its currencyto outsmartthe foreign creditors, and, of course, action were not taken. that way the United States no longer has sovereignty over its Outside the United States, the chorus was the same. Brit­ monetary and creditpolicies. ish and French finance ministers Nigel Lawson and Pierre Beregovoy warned that markets would suffer unless Bush Treading dangerous ground signals that he will cut the deficit.Timothy O'Dell, an econ­ But what will the effect of all this be on an already rotten omist with UBS Phillips and Drew in London, told the New bankrupt credit and banking system? It is not too difficultto York Times, in remarks reported Nov. 11: "If the markets establish that such tricks from the central bankers' armory concluded they didn't like what they saw, there would be at will contribute to accelerating the collapse of the entire $15- least the implicit threat of overseas central bankers that they 20 trillion in unsecured paper which is still called the dollar­ would withdraw supportfor the dollar. The decision may be based system. taken by 1he Germans and others that 'the Americans may· Interest rate increases, combined with another dollar col­ need, if you like, to face a more substantial crisis in the lapse? Ho, ho! First to go down the tubes will be the new financial markets to come to their senses. " round of enormous "leveraged buy-outs," which alone kept Contrary to this, Japanese Finance Minister Kiichi Mi­ the market going during the final two weeks of the election yazawa, decrying the week's plunge in the dollar, issued a campaign. Then, completed LBOs and the $150 billion junk call Nov. 10 for more coordinated central bank intervention bond market will be sucked into the maelstrom, as borrowing to halt its slide. costs rise. Also to be considered is the effect of a 1.5-2.5% While seemingly different, it can be assumed that Miya­ increase in borrowing costs on the savings and loan institu­ zawa and company are actually walking the other side of the tions, and indeed on the commercial banking sector itself. same street that the Europeans and the Americans are on. What the financial crowd calls a "flight into quality" had While the name of the demands is "cut the budget deficit," already begun before the new slide of the dollar, when the "reduce the current account deficit," and "increase taxes," announcement of the RJR-Nabisco buy-out, a $20 billion the coordinated international political pressure campaign is transaction, knocked the bottom out of the international and actually intended to make sure that the levers of control are domestic market for U.S. corporate debt. A new round of held by the international central banks, and that the new interest rate increases will raise the tempo of that flight to administration will be only a malleable tool in the bankers' quality, speedily leaving whole chunks of outstanding claims hands. worthless in the stampede for cash and other relatively crash­ The pressure against the dollar will rapidly translate into proof holdings. It will also help knock the bottom out of the new increases in U. S. interest rates, increases which will be speculatively superinflated U.S. real estate market, which coordinated by the Federal Reserve and the big commercial ultimately provides the collateral for a good chunk of the banks. On the basis of such increases, it is probably thought financial transactions, as assets are forcibly converted into that a new, lower level can be found for the dollar against cash to pay down outstanding debt. both the yen and the deutschemark, by establishing in prac­ Of course, it will then be very difficult for the central tice the independence of the central banks, no matter what bankers who organized the flight with their pressure tactics elected governments intend. to argue that there should be deficit reductions. They will The increasein the Euro-depositrate portends an increase have contributed to increasing the cost to the Treasury of in the prime rate, perhaps to 10.5% or 11%, as banks pass closing the S&Ls to the $200-250billion level, and will have along their increased borrowing costs; it also portends the been responsible for adding a similar charge against Treasury establishment of a new higher interest rate spectrum in the accounts for the commercial banking sector. bondmarkets. If three-monthoff- shore money is rated about By pursuing their pressure campaign, the central bankers' the same as the yield on the U.S. government's 30-year consortium is pushing to take control over the U. S. govern­ bonds, then there aregoing to be substantial increases in rates ment in the kind of way hitherto reserved for Third World in the bond markets to keep pace. The Treasury's quarterly debtors. It is also undermining the source of its own power, marketing, in the last two weeks of November, when it at­ the rottenbankrupt financialsystem , and thereby creating the tempts to sell about $30 billion of debt, will compound the conditions in which those with the requisite knowledge and pressure. courage can h?pe to reorganize world credit and economic Then back onto the agenda will come the proposals float­ systems on the basis of the reassertion of the sovereign pow­ edin the Spring of 1988, by former Japanese Prime Minister ers of national governments, to end the rule of usury and Yasuhiro Nakasone, and the crowd in Europe typified by speCUlation.

ElK November 18, 1988 Economics 5 World Bank "will follow." Cavanaugh said he believes that a Bush administration Will Bush bail out will adopt a "realistic" approach to the issue, and drop its campaign-trail "hardline rhetoric." One specific initiative he Mikhail Gorbachov? expects Bush to take is suspending the Jackson-Vanik and Stevens Amendments. Another East-West trade consultant, by Kathleen Klenetsky Dr. Timothy Stanley� agrees. A board member of the influ­ ential Atlantic Institute, has written a monograph urging the United States to give positive feedback to Gorbachov's phony President-electGeorge Bush is expected to come under early "reforms" by easing existing restrictions on U.S-Soviet eco­ intense pressureto agree to a taxpayer-financedbailout of the nomic relations. Moscow "perceives the West's restrictions West's chief opponent: the Soviet Union. as economic warfare," and that must come to an end, he said Bush is already being deluged with advice from various recently. quarters that he must allow, if not encourage, a significant In addition to the food processors agreement, a consor­ increase in credits, investment, and other forms of economic tium of six leading U.S. manufacturers (among them, East­ dealings with Moscow, on the grounds that, unless the West man Kodak, Archer Daniels Midland, and Ford Motor Co.), helps out the "moderate" Gorbachov, he will be replaced by are said to be on the verge of a major joint-ventures accord dangerous militants. with Moscow. Secretary of State-designate James Baker III is consid­ Whether or not the United States participates in this rush ered a leading proponent of this view, which was avidly to bail out the Soviets depends in large measure on whether promoted by Michael Dukakis's policy advisers. But it is still George Bush can be convinced that to do so, will only serve an open question where Bush himself will come down on this Moscow's imperial ambitions. first litmus test of his administration. So far, there are mixed signals emanating from the circles around him. Reagan-Bush National SecurityAdviser Lt. Gen. Joint ventures Colin Powell told an internationalinvestors conferenceNov. The Soviets made a major bid to lureWestern funds when 8 that the recent lending binge by Japanese and European it announced just a few weeks before the U.S. presidential banks to the Soviet Union does not pose a threat to Western elections that it had relaxed its laws governing joint ventures. security interests. He noted that President Reagan "strongly The Oct. 29 New York Times disclosed that Soviet Prime supports the expansion of mutually beneficial trade and eco­ Minister Nikolai Ryzhkov told European officials that for­ nomic relations with the Soviet Union," but cautioned that eign firmscould now own as much as 80% of a joint venture. the primary relationship between the U.S.S.R. and the United Combined with the recent spate of European and Japanese States is "competitive and adversarial" and "will remain so lending to the Soviets, and indications that the ruble may be in our lifetime." made convertible in the not-too-distant future, this change is A report by an administration interagency task-force, expected to spur the flowof U.S. dollars to the East. which became public a few days after Powell's remarks, said Advocates of a Gorbachov bailout are trying to make their basically the same thing. But Bush adviser Henry Kissinger case by using the tantalizing prospect of massive profits ripe has taken a warier attitude, as has Bush himself. In an inter­ for the grabbing. Omaha lawyer John Cavanaugh, who just . view with the Nov. 9 Le Figaro, he cautioned against taking recently negotiated a precedent-setting joint-venture agree­ Gorbachov's "reforms" at face value and pouring money into ment between U.S. food processors and Soviet authorities, the Soviet economy. Moreover, conservative Republicans, told the Oct. 25 New York Times that the Soviets intend to led by Sen. Steve Symms (R-Idaho), are already screaming spend $60 billion in the next fiveyears on their food process­ about untied loans to the Soviets. ing industry alone. The "bail out Gorbachov" push will get a big boost from In a subsequent conversation, Cavanaugh predicted, "The a major conference on the idea of a "Marshall Plan for the political climate in the United States [on American-Soviet East" slated for Dec. 13 in Los Angeles. Co-sponsored by economic ties] will change immediately after the elec­ UCLA and the Alcide de Gaspari Foundation, the meeting tion.... By early next year, U.S. banks will revise their will feature an international cast of influentials, including current attitudes," and will dramlltically increase their lend­ Italian Prime Minister Ciriaco De Mita-already on record ing to the Soviet bloc. favoring such a plan-as well as Giulio Andreotti, senior Cavanaugh premised his predictions of closer U. S. -So­ � Reagan-Bush arms control adviser Paul Nitze, former Dem­ viet e<;onomic ties, on the conclusion of a strategic arms ocratic Party chairman Charles Manatt, Republican National control accord. Once such an agreement is signed-which, Committee chair Frank Fahrenkopf, Sen. Alan Cranston (D­ Cavanaugh thinks, will happen next year-then increased Calif.), and a few dissenters, notably ex-Pentagon chief Cap economic relations and Soviet membership in the IMF and Weinberger.

6 Economics EIR November 18, 1988 The Moscow-IMF vise Moscow and the Warsaw puppet regime have a powerful ally in their plot to crush the Polish opposition-the Inter­ national Monetary Fund and the Western financiaLcircles behind it. Rakowski's Oct. 31 announcement was worked out during his visit to Moscow Oct. 20-21. An IMF team was in Poland during the period bct. 20-Nov. 3. This time frame encompassed Rakowski's Moscow visit, Polish leader Gen. Poland moves toward Wojciech Jaruzelski's Oct. 21 threat to employ violence against strikes and demonstrations-"my hand will not trem­ winter explosion ble if I have to use violence"-and Rakowski's announce­ ment of the closing of the Lenin Shipyard. by Konstantin George According to well-placed sources, the IMF delegation "endorsed" the Rakowski program to shut down "loss-mak­ ing" enterprises, making this a prime condition for a long­ The Polish crisis is moving inexorably toward a December sought standby credit. The IMF also demanded that Rakows­ explosion of food marches, protests, and riots on a national ki begin by closing down the Nowa Huta Steelworks, outside scale, far surpassing the bloody December 1970 riots in the the city of Krakow. Nowa Huta, which led the first 1988 port of Gdansk which toppled the Gomulka regime. The strike wave during April-May, is the other bastion of Soli­ December crisis could assume the proportions of an open darity. revoltby a hungry, freezing, increasingly desperate people, All Western credit to Poland is now blocked until Poland and could lead the Warsaw puppet regime to summon the comes to terms with the IMF. Thus, the IMF, using financial Red Army to "restore order. " blackmail, has joined Moscow as twin enforcer of the plot to In short, we are on the edge of a strategic crisis on the smash the opposition. continent of Europe, developing in the middle of the U.S. Poland's credit situation is desperate. This year, Poland post-election transition period. has received no new loans from any Western sources, and The first phase got under way with the Oct. 31 announce­ will receive nothing until the IMF is satisfied. Currently, ment by Polish Prime Minister Mieczslaw Rakowski that the about three-quarters of Poland's exports to the West, and industrial home base of the opposition Solidarity labor union more than 50% of all foreign exchange earned, go to meet and its leader, Lech Walesa, the Lenin Shipyard in Gdansk, debt service payments. would be closed. The government move, in accordance with There is another dimension to this looting vise. Soviet directives fromboth Moscow and the InternationalMonetary looting of Poland's economy has created the rationale for the Fund, touched off a round of protests in Gdansk, including IMP to demand industrial shutdowns. For example , the Lenin brief wildcat strikes. Though these strikes ended on Nov. 9 Shipyard is a perennial "loss-making enterprise," because, after only 24 hours, they are a harbinger of things to come, as admitted in the Polish magazine Polityka in the first week and of the radicalization of the Polish opposition. of November, it must sell the ships it builds "at prices far On Nov. 9, Walesa warned that an irreversible and dan­ below production costs." Polityka forgot to mention that the gerous radicalization of Solidarity is unavoidable if the gov­ sole buyer of these ships is the Soviet Union, and the scan­ ernmentrefuses to revoke its decision to close the shipyard, dalously low prices are dictated by the Soviet Union. as well as scores of other large industrial enterprises. De­ clared Walesa, "The time could come when I lose my influ­ Winter reality ence on the impatient workers and could no longer intervene It is this looting of Poland's economy that is now bringing to end strikes. Then, Walesa will no longer be of any use." that country to its greatest crisis since the war. By December, Behind the coming explosion is a rapidly worsening sup­ with no food, no basic non-food necessities, and no fuel to ply situation affecting food, non-food basic necessities, and heat freezing cold homes, the Polish winter will not deter, heating fuel. Meat has been unavailable for months. Now but more likely provoke, a spontaneous and unpredictable that British Prime Minister Thatcher has departed from Po­ explosion. land, fruit and vegetables have disappeared, and dairy prod­ The explosion is assured because, even if it wanted to, ucts are disappearing. the Polish government cannot remedy the supply situation. Canned foodproducts are also vanishing from the shelves. During September and October, as part of its "buy time" One day, Radio Warsaw's domestic service reports that vi­ strategy again�t the opposition, featuring the promise of negar is no longer available; the next day, the same report is "roundtable" talks with Walesa, the Warsaw regime used up issued concerning mustard. And so it has gone, day by day its last foreign exchange reserves and whatever consumer through the month of November. goods stockpiles existed, to create a temporary upturn in the

EIR November 18, 1988 Economics 7 consumer supply situation. That marginal, artificialimprove­ ment was sustained throughthe Nov. 2-4 Thatcher visit. The CurrencyRates bubble has now burst, and with it the Polish regime's ability to alleviate the worst winter supply situation since the first, The dollar in deutschemarks desperatepostwar years. As November runs its course, every NewYork late afternoon fixing item that vanishes from the store shelves will remain unavail­ able throughout the winter. There areno longer any reserves. 1.90 Also during November, the meager stocks of heating fuel r-- will have been largely consumed, thus adding to the grim 1.88 I\, - food picture the specter of freezing apartments in the bitter r-'" cold Polish winter. 1.70 Thus, by December, intelligence sources anticipate food 1l.fi0 marches, protests, riots, and plundering by desperately hun­ gry families. I.SO Polish women and housewives, says sources, will be in 9120 9127 10/4 10/12 10/19 10/26 1lI2 1lI9 the forefront of these demonstrations. Any move by the re­ gime to violently suppress such women's marches, would be The dollar in eny sufficientto bring the entire country into full revolt. NewYork late � fixing

Moscow prepares invasion plans ..J9 Moscow has been preparing for the eventuality of invad­ 140 ing Poland to save its puppets, "restore order," and keep .... Poland a captive nation. At the end of September, following 130 the huge "Autumn '88" Soviet-Warsaw Pact maneuvers in 1\..,...... - the Ukraine and Moldavia, the Soviet ground and air forces 120 stationed in Poland, Czechoslovakia, and the Belorussian Military District-ringing Poland-staged simultaneous no large-scale maneuvers. 9120 9127 1014 10112 10119 10126 1lI2 1119 Soviet military contingency plans have been worked out The British pound in dollars by a team led by Marshal Nikolai Ogarkov, now directing New York late afternoon fixing the WesternHigh Command, under which the WesternThea­ ter of War is subsumed. The last Soviet public reference to 1.90 Ogarkov occurred in the Oct. 13 edition of the military paper,

Krasnaya Zvezda. Ogarkov was mentioned as present as an 1.88 active officer at the Oct. 12 Moscow ceremonies on the 45th - '--� � '" anniversary of the Russian-created Polish armed forces. (The 1.70 � ----l -- Soviets had butchered the Polish officer corps at Katyn in --- ",,-- 1943.) l.fi0 Once the December crisis hits with full force, the threat - I.SO of a Soviet military intervention will become acute. The 9/20 9/27 10/4 10/12 10/19 10/26 1lI2 1119 Polish regime knows it cannot handle an actual revolt, and would issue a call for "brotherly socialist assistance" from The dollar in Swiss francs Russia. Soviet military preparations for an invasion have NewYork late � fixing been completed, and Moscow would require at most 48 ho urs' notice to commence an invasion fromtwo directions; march­ 1.60 ing west from the Western U.S.S.R. Military Districts and � ...... � I.SO the Baltic, and marching east from the Soviet forces stationed - ..... in East Germany, joining the Sov�et forces based in western 1.40 Poland. The first major strategic test for President-elect George 1.30 Bush w�1I thus probably occur even before his Jan. 20 inau­

guration, confronting him with the fact that he is morally 1.20 responsible for the fate of 40 million Poles and the continent 9/20 9/27 10/4 10112 10119 10126 1lI2 1119 of Europe.

8 Economics EIR November 18, 1988 have close ties to the U.S. State Department. While most of the world press coverage of the conference focused on the "peace" talks, the Soviet focus was econom­ ics. As reported in the Hindustan Times Oct. 3, '�It was suggested that optimum economic benefit through 'mutual cooperation among the countries of the region could be reaped by the Soviets' providing the market, the Japanese technol­ ogy, and others, including China and India, the manpower. The Russians gaze It was agreed at the instance of the Soviets to underline that the cooperation would have to be on the basis of the principle at unwilling Asia of reciprocity. " Japan 'far beyond Soviets' by MaryMcCourt Burdman One prominent Soviet participant was heard admitting that Japan has moved so far beyond them, economically and The Soviet Union stepped up its attempts to break into the technologically, that Japan no longer "has to deal" with the Asian-Pacific region by dispatching Yevgeni Primakov, a U.S.S.R. for resources or for trade. The Russian "market" is top policymaker for the Middle East and Asia, to the region nil: The Soviet Pacific coast population is about 1 % of the during October. But Asian nations are not proving quite so Asian population. Moscow has turned to "importing" Chinese susceptible to Soviet cajoling and bullying as Europeand the labor, starting with 10,000 workers from impoverished United States. northeast China, to work in Soviet factories and farms. Moscow's economic-diplomatic drive into Asia was "The Soviet Union is a Eurasian state and we wish to see launched in July 1986 with a speech by General Secretai-y our country serving as a reliable bridge connecting two great Mikhail Gorbachov enunciating the "Vladivostok doc­ continents in the economic, cultural and humanitarian fields," trine"-the Russian assertion that it, too, is an "Asian pow­ said Gorbachov in his message of greetings to the conference. er." Soviet desires for a foothold in the East were expressed Yet, there were only ethnic Russians in Vladivostok. again by Gorbachov on Sept. 16 of this year from Krasnoy­ The only enthusiastic response that even the Soviets arsk, the site of the huge Soviet anti-ballistic missile defense themselves reported on the conference came in the statements radar. by Indonesia's Imron Rosyadi to the Soviet foreign affairs The problem Moscow faces is that, although the Soviet weekly New Times (No. 42, 1988), but even Rosyadi stated Union has massively built up its Pacific military deployment it was "still too early to convene a meeting of foreign minis­ over the last decade, it is widely understood throughout Asia ters of the region." that, economically, Moscow has nothing to offer. Moscow Among other responses: has sustained a long-term trade deficit even with impover­ • Former Thai Foreign Minister Thanat Khoman simply ished India. noted that "a number of the initiatives put forward by Gor­ In an effort to circumvent this problem, in May of 1986, bachov are interesting." Yevgeni Primakov, director of Moscow's Institute of World • Chinese delegate Pu Shan of the Chinese Society of Economics and International Relations (IMEMO), an­ World Economy, while citing the increase in Sino-Soviet nounced in New Times the formation of the Soviet National trade and border "activity," stuck to the P.R.C.'s unaltered Committee for Asian-Pacific Economic Cooperation. Indi­ conditions for relations with the Soviets, calling Kampuchea cating Moscow's desire to organize economic bailouts from "the most urgent problem in the region." the Asian dynamos such as Japan and South Korea, Primakov • Philippines delegate, Senate Foreign Relations Com­ noted, "The economic problems of recentyears have become mittee Chairman Leticia Shahani, while pushing the Russian­ especially manifest in the Soviet Far East." promoted"nuclear-free zone," also asserted that "the Helsin­ But the problem was glaringly apparent at a conference, ki model cannot be applied to the Asian-Pacific region." A "Asia Pacific Region: Dialogue, Peace, and Cooperation," meeting of Pacificforeign ministers would require "extensive the Russians held at Vladivostok Oct. 1-3. It was glasnost and serious preparation" and "considerable time," she said. only for the weekend, when the "fortress city" was opened to a few selected foreigners for the first time in 55 years. Focus on Japan U.S. participants at the conferenceincluded Richard Hol­ The results of the Vladivostok conference were at best brooke, who was Assistant Secretaryof State for East Asian "inconclusive," as participants reported upon return. But in and Pacific Affairs in the Carter State Department and now a further bid· to roust up some trade with Japan, Moscow with Shearson Lehman Hutton; and RichardScalapino of the dispatched Primakov to Tokyo Oct. 24 to speak at a sympos­ University of California at Berkeley "Asian mafia." Both ium sponsored by the Research Commission on Security of

EIR November 18, 1988 Economics 9 Japan's ruling Liberal Democratic Party (LOP). Primakov was accorded high-level meetings with Foreign Minister So­ suke Uno, LOP General Secretary Shintaro Abe, and fonner Prime Minister Yasuhiro Nakasone. However, despite Primakov's numerous blandishments, Japan refused to back down on its demand that the Soviet Union return the four Kurile Islands it seized from Japan in the final hoursof WorJd War II, or take steps to returnthem , before any serious negotiations on Japanese contributions to Soviet domination of Asia take place. The Kurile Islands are AIDS: strategically important for the Russians, because the straits between them could be sealed in wartime to bottle up the Soviet Pacific Fleet in the Sea of Okhotsk or cut off Vladi­ vostok. MANKIND'S Primakov appeared ready to offer everything but the Ku­ riles. Despite Soviet retrenchment in Afghanistan over the HOUR previous week, Primakov declared that "the Afghan model can be regarded as one effective model for solving regional conflicts" in Kampuchea, South Africa, and the Korean pen­ OF TRUTH insula, according to Kyodo news service. It is important to get all the participating players together to resolve disputes, Within the immediate period ahead, mankind will he declared , but admitted that the Soviet Union could not reach the point of no return on adopting one of the support Republic of Korea President Roh Tae Woo's recent only two proposed concrete courses of action to deal proposal for a six-nation conference on the Korean situation with the out-of-control AIDS pandemic: unless Soviet ally North Korea agrees. 1) As he pledged to the American people in a June He attempted to apply the "regional deal" method to the 4, 1988 prime time television broadcast, Lyndon H. Kuriles as well. Japan should not be intransigent: "China also LaRouche, Jr.'s science-intensive plan could wipe the virus from the face of the Earth. has territorial claims over Japan," he said. "Certainly that issue [the Kuriles] cannot be used as a premise for dialogue." 2) The alternative course, proposed by Dr. C. Ev­ erett Koop, the Surgeon General; by the insurance Despite Soviet perestroika in foreign policy, Japan must join companies, the banks, governments, and the health in the dealing, he said. "If the situation is a hostile one and establishment, in the name of "cost-containment,'" the counter-party is anti-Soviet, we cannot change our poli­ is to revive Nazi policies of euthanasia ("mercy kill­ cy." 'ing") and death-camp "hospices" instead of hospitals. The Japanese daily Asahi Shimbun had reported that Pri­ This plan will doom the humanspecies to a miserable end. makov "hinted" it was impossible for Moscow to discuss the return of all four islands to Japan, but did not rule out the In a new special report, EIR presents in depth the possiblity of negotiations on two of them, Habamai and Shi­ twoalternative paths and their implications. We re­ main optimistic that mankind will ultimately choos� kotan . Prime Minister Noboru Takeshita told Japanese re­ victory over defeat. porters the next day that Japan remains unchanged on the issue of the four islands, and that any potential Soviet "return of two islands" was incompatible with the Japanese stance. �TIill In his meeting with LDP General Secretary Abe, Prima­ SPECIAL REPORT kov dropped the mask. Primakov pointedly talked up the Featuring Russians' interest in expanding trade with South Korea. Then, Lyndon H. criticizing the Japanese for "often thinking they are 100% in laRouche, Jr.'s the right," he charged that Japan's stance of applying constant AIDS Global Showdown: pressure on Moscow is counterproductive. Said Primakov, Mankind's total victory War Plan for "While Japan boasts that public sentiment for the return of or total defeat Victory the islands runs strong nationwide, Tokyo ignores the signif­ FeaturingLyndon H. laRouche,Jr.'s plan for victory icance of public sentiment [!] in the Soviet Union," Kyodo August 1988 reported." "If a referendum were held in his country, the ' majority of people would say that there should be no read­ Price: $250 Order from: Executive Intelligence justments of borders fixed at the end of World War II," Review, P.O. Box 17390, Washington D.C. 20041-0390 Primakov said.

10 Economics EIR November 18, 1988 the dollar payments for the sale of Mexican crude oil, which were invested in foreign financial institUtions and have gen- . erated further profits. Mexican oilworkers Barrientos warned that the STRPRM doesn't oppose an internal inquiry, but "we will also demand that the 'investi­ back debt moratorium gation be broadenedto include the 300 families who hold the wealth in Mexico, to detennine the source of the wealth of by Marivilia Carrasco and Hugo LOpez these families who pressure the government to favor their interests. "

In a paid announcement printed in the Mexican press on Nov. A new majority? 1, the Revolutionary Oilworkers' Union of the Mexican Re­ The oilworkers' allegations against Beteta were backed public (STRPRM) revealed the policy issue that is really by all of the congressmen linked to the Mexican Workers behind the oilworkers' fight to bring Mario Ram6n Beteta, Confederation (CTM), the National Democratic Front of ex-chairman of Pemex, the Mexican national oil company, popular fonner presidential candidate Cuauhtemoc Carden­ to trial for embezzling government funds. as, and most of the right-wing National Action Party con­ Addressing the Mexican people, the House of Represen­ gressmen. This defines the possibility of a new majority in tatives, and all "true members of the PRI" (Mexico's ruling the House of Representatives, which could totally change the political party), the ad says: "Subservience, abjectness, and nation's economic policy. slanders shall not keep the truth from the Mexican people. The power of this potential new majority can be seen in As we've always said, the facts will continue speaking to the the fact that President Miguel de la Madrid's frantic efforts nation, even as the internationalbankers' employees attempt to protect Beteta and preempt the scandal have failed. The to slander us; this is why those who tightened our belts yes­ oilworkers charge that Beteta committed fraud in 1986 during terday and today strangle our nation's life, in an alliance with the creation of the Mexican Oil Heet, privately owned by the country's banking elite which holds over half of the debt, Isidoro Rodriguez, to whom Beteta gave an exclusive Pemex do not want a moratorium even in jest." oil shipping contract. Rodriguez's company was built on a The demand for debt moratorium by the strongest trade loan issued by Banpesca, the official fishing credit agency, union in the PRI has panicked Mexico's oligarchs. On Nov. based on the contract he already had with Pemex. The loan 3, STRPRM sections 34 and 35 put it even more clearly: was for-you guessed it-buying ships. On top of that, "The only ambition of the new Porfiristas [after dictator Por­ Rodriguez, who also owned the Mexican Stock and Invest­ firio Diaz, whose regime led to the 1917 Mexican Revolu­ ment Exchange, and was chainnan of the National Chamber tion] is greater economic power to achieve greater benefits of Automotive Transportation, overpriced the ships at $19.5 and privileges, not to fight for national sovereignty or for million, even though the budget office estimated their value better living standards for the people." The statement goes at $12 million, and Beteta knew it. on, "thenew Porfiristashave always blackmailed the govern­ On Oct. 29, the AttorneyGeneral 's officeruled that crim­ ment with the greatest cynicism. Or is the constant threat of inal action against Beteta was not in order, a ruling rejected taking their money out of the country not blackmail? Isn 't it by the oilworkers' representatives and the entire opposition blackmail to demand laws and regulations ever more favor­ in Congress. Then various PRI congressmen tried to build on able to [their] capital?" the Attorney General's decision, but were beaten back by the The ad says that the leadership of the "new Porfiristas" oilworkers' representatives in what several newspapers de­ are "300 families led by the Legorretas, SUllreZeS, and Bor­ scribed as a virtual break between the union and the PRI. On tonis: the banking elite which speculates and bargains with Nov. 2, Barrientos announced that in the Beteta case-and theMexican people's and investors' rickety economy. " Pres­ possibly other matters, as well-no ruling will be upheld ident-elect Carlos Salinas de Gortari hasn't a chance of im­ unless it is supported by the entire labor representation in plementing an economic recovery program unless he shakes Congress. this "neo-Porfirista"mafia, and throws its most corruptspec­ The "families" made their countennove Nov. 5. The PRI imens in jail. delegation in Congress-headed by Rep. GuillennoJimenez Central Bank director Miguel Mtmcera is apparently on Morales, a stooge for the private bankers-excluded Rep. the oilworkers' target list, too. Rep. Adolfo Barrientos, who Adolfo Barrientos, who had begun the congressional inves­ is close to the union, announced Nov. 2 that ''the oilworkers' tigation of Beteta, from the commission charged with that union also demands an investigation of the misdirection of investigation. Yet both the opposition and the oilworkers' Central Bank funds earmarked for housing, which were in­ faction in Congress said they were confident the vote would vested in the stock market just before last year's October run 271-229 against Beteta, when the commission's ruling stock market crash." Barrientos also demanded a probe of comes to the floor.

EIR November 18, 1988 Economics 11 Andean Report by Carlos Mendez

Venezuela sells its oil future bankers were happy to lend , puffing On the eve of presidential elections, the political establishment is up the foreign debt. The debt service burden and the fall of oil prices have accused of "giving the countryawa y." rapidly depleted reserves from $30 billion in 1982 to $7.232 billion at last count, only $2.225 billion of which are liquid. And $2 billion of that must An Oct. 31 UPI wire, datelined New anism called "accounts payable." be kept on deposit in creditor banks, York, has created a political uproar in Thanks to the name-change, Ven­ or the creditors can contractually de­ Caracas. "Venezuela has begun ne­ ezuelan officials eluded the law that clare the country insolvent, under gotiations to sell $1 billion worth of requires futures contracts to be ap­ terms of last year's debt renegotiation. futures on its oil production," accord­ proved by Congress. That routewould To scrape up cash, Venezuela has ing to the report. "Caracas entrusted make an even bigger scandal, espe­ put $500 million of its gold reserves the operation to BankAmerica Cor­ cially on the eve of elections. But, the in the Bank for International Settle­ poration (the company which owns regime needs to pay $1 billion debt ments, in Basel, Switzerland, as col­ Bank of America) and to Salomon service now, to ward off bankruptcy lateral for a short-term loan, and sold Brothers, Inc." until after the elections. much of its remaining gold. The gov­ The future sale of petroleumto pay Journalist Alan Lugo decribed in ernment has also brought in a little debt is a bombshell in Venezuela, the Caracas daily EI Universal Oct. 27 cash by selling state-sector entities to which is holding presidential elections how futures sales violated the sover­ foreign creditors under debt-for-equi­ on Dec. 4. The oil industry was na­ eignty Venezuela has tried to consol­ ty schemes. tionalized 15 years ago, and it would idate since 1905, when gunboats fired All of this, however, is not enough be hard to find anyone who would on its ports to collect the debt. "In the to fill up the $2.030 billion hole in openly advocate restoring it to the first place," he wrote, "the contracts Venezuela's current accounts for the multinationals. Venezuela's present force the country to renounce thepro­ first nine months of the year, as cal­ and its future, after all, is dependent hibition against embargoes which is culated by the central bank. During on its oil exports. consecrated under international law, the first three quarters, $11.147 bil­ What makes the issue particularly in the event of non-compliance for any lion came into the country, but $13.177 explosive, is that social democrat Car­ cause. Also, the country must re­ left it, including $3.587 billion for los Andres Perez, the presidential can­ nounce the principle that any lawsuits paying the public and private foreign didate of the incumbent Democratic involving the contracts be heard in na­ debt. The difference has come out of Action party, has spent the last few tional courts." reserves, which have diminished by weeks of the campaign trying to shake Such waivers of sovereign immu­ $2. 144 billion so far this year. Anoth­ allegations made by the Venezuelan nity may or may not be among the er $1.5 billion in debt service remains Labor Party (PL V) and widely printed formal conditions of the "accounts to be paid before New Year's. - in the press, that he is a "bankers' boy." payable," but that is how it works. The The governmentand its candidate, His leading opponent, Christian Dem­ deal is: Venezuela sells its oil to Carlos Andres Perez, reject the widely ocrat Eduardo Fernandez, has recent­ Champlin Oil Refining Co. and Citgo discussed option of debt moratorium. ly narrowedCAP 's lead in the opinion PetroleumCo. Instead of paying Ven­ While they will not negotiate with the polls by charging that CAP and the ezuela, they deposit the funds in New International Monetary Fund before other establishment politicos were York, in a trustfund from which Ven­ the elections, they are heading toward "giving the country away." The future ezuela cannot withdraw them. Then a deal with the IMF. On Oct. 19, the oil sale proves his point. what? Nothing. The money goes to government raised from 7.5 to 14.5 Venezuelan Finance Minister "accounts payable." bolivars the amount needed to import Hector Hurtado felt compelled to The Venezuelan government was $1 worth offood and medicine. It �llso "correct"the UPI report, hours afterit forced into a comer by its bankers' loosened exchange controls to let pri­ was printed in the Caracas papers. refusal to lend. Duringthe years when vate-sector exporters keep their dollar H�do contended that Venezuela was the oil bonanza brought in so many revenues for speCUlative purposes, not selling "futures contracts" on its dollars that the government could not rather than have to exchange them at oil, but was using an ingenious mech- figure out what to do with them, the the central bank.

12 Economics EIR November 18, 1988 Agriculture by Robert Baker

USDA: 'Let them eat turkey' imports from Mexico, which were up Poultry is supposed to replace red meat in the diet, but thanks to 60% in January and Feburary at 586,000 head. Overall beef imports fe deral policies, you won't be able to affo rd it. are forecast to be 2.3 million pounds for 1988, mainly fromAustralia (70% Not just at Thanksgiving, but all 1988, net returns were estimated at a of imports) and New Zealand (13%). year round,"Let them eat turkey." This negative 12 cents per pound. Dry conditions and increased feed is the advice of the u.S. Department With expected increases in feed prices have slowed the USDA-fore­ of Agiiculture in recent years to ail prices from the drought, and with cast domestic herdrebuilding this year. thosewho can't afford to eat red meat, wholesale turkey prices rising to only However, there is no basis to pre­ and to those who are leery about beef 54-60 cents per pound in the fourth sume beef imports can continually and pork because of the scare stories quarter, net returnswill be as much as materialize in a world characterized over fat content and drug residues- 15-20 cents per pound. by worsening food shortages and farm . stories promulgated by even the USDA Per capita broiler consumption is crises. In New Zealand, farmers have itself. expected to rise to about 62-73 pounds been hit hard by high interest rates and Now, thanks to the impact of the in 1988 from 60.1 pounds in 1987, a unfavorable exchange rates and an drought.and to the years of federal anti­ 4% increase. The USDA reports that austerity agriculture policy (see page farm production policies, you may not increased per capita supplies of chick­ 46). New Zealand meat output is de­ be able even to afford turkey. en will slacken in the last half of the clining, and the Labour governmentis Expanding feedgrain exports, year, as chicken producers are losing redirecting beef exports away from higher domestic use, and reduced grain big money from high feed prices. traditional markets, and instead, to the stocks caused by both the drought and Broiler net returns during the rest of East bloc, and Khomeini's Iran. government cut-back programs, have 1988 are expected to be below break­ Argentine meat output is forecast caused feed costs to leap rapidly from even by as much as 3 to 5 cents per to decline, although domestic demand last year's levels, catching many live­ pound and may average a negative 0.1 is likely to be depressed by austerity stock producers off guard. cents per pound for the year. policies (see page 52), which would Corn prices have increased 117% According to the USDA, record allow exports to increase in the short from$1. 65 to $3.20 per bushel. Prices large supplies of red meat, relative to term. Turmoil in Brazil's cattle indus­ of soybeans, the main protein supple­ a year ago,are keeping livestockprices try caused a drop in output and exports ment, have increased at least 35%, low. Last year's livestock and poultry also. going from $6.50 to $9.00 per bushel receipts ($86 billion) provided pro­ Year in and year out, meat produc­ over a year ago. Feedgrain ending ducers with record profits due to very ers have been fighting for profitable stocks will be down approximately low grain prices and low animal in­ price levels to stay in business, and 37% . ventories. The relatively good profits just when prices reach a point of rea­ Thus tight supplies have pushed encouraged more producers to expand sonable profit, the free-trade myth of prices of both soybean meal and corn livestock numbers. "overproduction" triggers the market to levels that have destroyed the prof­ Now these food producers will be to reduce the price to a level of nega­ itablity of meat production for many penalized for providing larger sup­ tive return. beef, pork, and poultry producers. plies of meat because of a free-trade As long as cartel-controlled USDA Although per capita consumption marketplace without parity prices that policy keeps food producers locked to of turkey is expected to rise to 17 guarantee farmers their costs plus a the old free-tradesystem of non-parity pounds in 1988, a 12% increase from fair profit. Hog prices have declined pricing, the up and down cycle of neg­ 1987, turkey production is slowing. as a result of a 9% increase in per ative returns will slowly place food First-quarter production was 25% capita pork supplies at the same time production in the hands of a few. higher than a year ago; however, only that U.S. pork imports rose an amaz­ Just as the traditional American a 9% average increase is expected for ing 10%, primarily from Canada and steak is becoming becoming scarce, the year. Net returns to the grower Denmark. and too costly for most people, the have been negative since the third Feeder cattle flows are down, but traditional Thanksgiving turkey may quarter of 1987. During first quarter are being partially offset by increased become too expensive to raise.

EIR November 18, 1988 Economics 13 Business Briefs

Agriculture was "not the slightest doubt that the policies campaign rhetoric of "peace and prosperi­ inflictedon New Zealandby the government ty ," productivity is as bad as the 1970s and Seek mandatory land owe at least part of their origin to the Inter­ investment has remainedlow as a portionof national Monetary Fund." GNP. Volcker said that monetary measures set-asides in Europe The government has been headed by (raising interest rates) will not serve to in­ David Lange and the Labour Party since crease investment as a portionof GNP, but Farmland set-asides in Europe must become 1984; Sir Robert headed the National Party cutting consumption will. mandatory, declared Sicco Mansholt, the government. In 1984, the New Zealand na­ Although he was opposed to cutting de­ 80-year-old former agricultural commis­ tional debt stood at NZ$12.6 billion, ac­ fense expenditures, he said that, in his view, sioner of the European Community, in an cording to official figures. Now it is offi­ the deficit must come down. He indicated interview with Die Zeit. Nasty old Mansholt cially NZ$39 billion, but sources in the not so subtly that entitlements represent40% is an architect of the EC policies that have banking community say the figure is really of the federal budget, hinting that that is led to the destruction of European agricul­ NZ$56 billion. where the cuts must come from . ture . In his statement, Muldoon pointed to the Mansholt called for an ordered set-aside fact that several key staffers of New Zea­ policy that would affect 10% of the land of land's Reserve Bank and the Treasury had the European Community, which he claimed worked for the IMF and World Bank. "In Corporate Strategy would stop "overproduction" and keep prices the last four years, these people had over­ up. Land set-asides are now voluntary in seen the rise of New Zealand's debt to the Europe and the United States, although gov­ level of Third World countries," Sir Robert Societe Generale ernment or EC subsidies usually make it said, according to The Press. targeted by drug money very tempting for a farmer to take land out With New Zealand's level of external of production. debt per capita perhaps the highest in the One of France's largest banks, is now the "The farms have to be ordered to set world, Muldoon commented that in his 40 targetof a hostile takeover attempt by Mar­ aside and this should be done precisely in years in politics, "I have never fe lt so angry cel Pebereau's Marceau Investments firm. regions most productive. To get to the point at the incompetenceand lack of understand­ During October, Marceau bought up more quickly. The small farms in less productive ing of any New Zealand government." than 5% of the bank's stock, launching the regions will be spared. We need alternate The former prime minister's statement takeover bid. methods, more cultivation that takes the en­ on the debt came at a time when controversy In the course of the fight, Pebereau has vironment seriously, less chemicals, more over the Labour government's plan to sell beenforced to release some of the names of search for natural pesticides. Besides, the off numerous national facilities (postal ser­ his shareholders. They include Edmund pig-stocks in regions with an intensive pro­ vice, financial institutions, etc.) to private Safra's Republic Holdings, whose Republic duction like Holland should be cut by one­ owners erupted into a crisis in the cabinet. National Bank of New York is being inves­ half. This is hard policy. But it can no longer On Nov. 5, PrimeMinister Lange firedMin­ tigated by U.S. Customs in the drug-money go on like this." ister of State-Owned Enterprises Richard laundering case involving the indicted BCCI Mansholt, Netherlands agriculture min­ Prebble, who had been in charge ofthis "pri­ . of Luxembourg. ister in a half-dozen postwar governments, vatization" process. The avowed purposeof Safra's bank in New York is holding at was a founding member of the genocidal the sell-off is to raise funds to service the least $500,000 in drug money, according to Club of Rome. national debt. the Oct. 31 Wall Street Journal. Safra and Pebereau are longtime inti­ mate friends. Foreign Exchange Safra was implicated in the U.S. Iran­ Foreign Debt Contra scandal throughhis business ties with Vo lcker warns of Willard Zucker, the former financial wizard Former New Zealand of Robert Vesco's drug-money handling dollar's fall Investors Overseas Services, who was the premier blasts IMF financial manager of Lt . Col. Oliver North's Paul Volcker, the former Federal Reserve "Enterprise. " Sir RobertMuldoon, former Prime Minister chairman, told an American Stock Ex­ Safra has just created a new European of New Zealand, laid the blame for his coun­ change conference Nov� 9 that if foreign banking network "only for the super-rich," try 's burgeoning debt burden at the door of capital doesn't continue to flow as freely he told London's Financial Times. the International Monetary Fund. Accord­ into the United States as it does today, the The Marceau-Societe Generale case is ing to a report in the Christchurch paper The value of the dollar will fall. becoming a big political issue in France. Press, Muldoon said on Oct. 31, that there Volcker indicated that in spite of the Pebereau was purged from a major French

14 Economics EIR November 18, 1988 Briefly

• CHINA is seeking to force at least 300,000 self-employed gold pro­ state company in 1986 by the Jacques Chirac Yet, despite lack of energy, in another spectors out of business to halt riots, government, for reasons that werenot made article, the China Daily announced that the rampant smuggling, and ecological known. Nevertheless, Pebereau's move country is considering a 40% cut in nuclear devastation, official reports said on against Societe Generale has received the energy development. Nov. 6. The move follows bloody official backing of the French presidency Meanwhile, Chinese leadersadmitted to gang warfare between miners and and Finance Minister Beregovoy. Among disarray in the economic reforms instituted near-starving Tibetan peasants whose his financial backers are several close asso­ under Zhao Ziyang, during an international lands have been ruined by a Klon­ ciates of former "opposition" presidential symposium sponsored by the Geneva-based dike-style gold rush in a remote area candidat�, Raymond Barre. World Economic Forum. "It was clear that of northwestChina closed to foreign­ Former Premier Chirac' s RPR party is they don't really know what to do," one ers. expectedto move in the Parliamentfor a full participant said. "They have a general plan, investigation in the matter. but that other half is clearly missing. There • THE NUCLEAR Regulatory At issue is whether some of the leading is no consensus on what to do next. " Commission raided four southern economic and financial institutions of Eu­ Communist Party leader Zhao, who met Californiacompanies it said had sold rope are going to be taken over by the inter­ with a small group from the Forum for an counterfeit circuitbreakers to nuclear national drug mafia,as part of the pre- 1992 hour Nov. 2, acknowledged that his govern­ plants. Used circuit breakerswere al­ financial and banking reorganization. In ment "made a mistake" in decentralizing legedly sold as new under the labels 1992, Europe is slated to drop all customs economic power in recent years. Zhao said of prominentcompani es. barriers to the movement of people, goods, flatly there would "be a slowdown" in for­ and capital, and cartelization is to be ush­ eign trade and investment contracts and that • GENERAL ELECTRIC has ered in, in all economic fields. "not many new ones would be signed," a been awarded an $89.5 million con­ participant in the meeting said. tract by the U.S. Navy to build and test an electric-drive propulsion sys­ temfor warships. GE will do the work Infras tructure in Finchburg, Mass., Salem, Va. , and Schenectady, N. Y . China being forced Dope, Inc. • THE HONEY industry is wor­ to curtail output ried by the spread of microscopic German health minister mites that are killing domestic honey­ The Chinese mainland lacks the economic bees by the millions. The mites are infrastructure to sustain its current rate of wants to legalize hashish spreading through hives across the industrial output, and must cut backon pro­ country, robbing honeybees of their duction of a whole array of industrial items West German Health Minister Rita Siiss­ characteristic vigor, and eventually in consequence, the State Planning Com­ muth wants to legalize hashish consump­ killing them. mission has announced. tion. The commission is therefore urging In an interviewwith Der Spiegel, Siiss­ • THE AIDS VIRUS is found in 1 "concretemeasures to slow down the exces­ muth, already somewhat notorious for her out of 300 college students on U.S. sively rapid growth of industrial produc­ do-nothing policy and ridiculous claims that campuses, according to a study by the tion," the China Daily reportedNov . 7. The AIDS is not spreading, stated that the con­ American College Health Associa­ measures include cutting production of ma­ sumption of hashish is already tolerated, and tion and the Atlanta-based Centers for chine tools and industrial boilers. that she therefore wants to study demands Disease Control, released Nov. 1. China's industrial growth rate this year from doctors and drug information centers to date has been 17.5% higher than last year, that the German Narcotics Law be adjusted • ONE THOUSAND textile work­ and there just is not enough energy, raw to this "social reality ." ers in Taiwan demonstrated on Nov . materials, or transport to support is,th the She also supports methadone programs 8 against U.S. pressure to increase commission said in a circular distributed for heroin addicts and wants to legalize the the value of the local currency. "We throughout the country. possessionof syringes by heroin addicts. are out here to make some noise and After stating that production of goods Siissmuth said that she wants to offer remind the government that it "not essential for the people's everyday life addicts "help," regardless of whether they shouldn't give in so easily to Ameri­ ...must stop," the circular stated that "fac­ choose to live without drugs or to undergo can demands," an organizer of the tories making machine tools, automobiles, therapy . protest said. Revaluations between internal combustion engines, and industrial She said that 30 million deutschemarks 1986 and 1987 were a major factor in boilers are required to curtail their produc­ will be spent for this pro-drug package in closing almost 500textile factories. tion in the last two months of the year. " the course of the next three years.

EIR November 18, 1988 Economics 15 �ITmScience & Technology

Biotechnologylab opens new doors in agriculture A new biotechnology laboratory at Disney Wo rld's EPCOT Center will show the public the potentialfor new technologies in agriculture, reportsMa rshaFre eman.

On Oct. 7, an unusual exhibit opened in the KraftCompany's Apparently, public "opposition" to biotechnology re­ Land pavilion at Walt Disney World in Florida. It is the first search exists not only in the United States. The Land agri­ biotechnology research laboratory open to the public, where cultural manager, Dr. Henry Robitaille, reported at a seminar every day, people will be able to watch scientists doing re­ held after the laboratory dedication that the Aug. 12 issue of search that will have a direct effect on the quantity and quality Science magazine reported the shutdown of a Soviet biotech­ of the food they eat in the future. nology laboratory "due to the reaction of the public and the To some sections of the radical environmentalist move­ press." At the dedication ceremony, Secretary of Agriculture ment, "biotechnology" has become the scare word of the Richard Lyng said, "Over the past week, America's yisions 1980s, the way "nuclear power" and "radiation" were in the of the marvels of science have been dramatically rekindled 1970s. Conjuring up visions of "biologically engineered" by the successful flight of the Space Shuttle Discovery, which, mutants, and experiments that produce "the fly that ate New incidentally, was launched about 60 miles from here at Cape York," the likes of Jeremy Rifkinhave sometimes succeeded Canaveral." in stopping or delaying important research. "In the same manner," he continued, "this e�hibit will The recent conviction and prison sentence of food irra­ help create a deeper· understanding of the marvels of science diation pioneer Dr. Martin Welt over minor violations of here on Earth, and its importance to the most basic part of federal regulations is an example of how ignorance can be our daily lives-the production of food and fiber. Our sci­ organized into an anti-science mob to stop new technologies entists are on the threshold of many exciting discoveries, that from feeding the world's hungry. The 30% of the world's are every bit as important to the future of mankind as the food that is harvested but rots before it can be consumed, explorations in space. could largely be saved if the food irradiation technology "Through technologies like tissue culture, which you'll developed by Dr. Welt were widely applied. see in this exhibit, I'm convinced that our nation's research­ In order to educate the American pUblic, in particular, ers are capable of unlocking many of the remaining m�steries about the science and promise of biotechnology, the U.S. of plant science, so that no one on this planet will ever need Department of Agriculture (USDA) has joined with Kraft �to fear that the world's farmers cannot produce enough food Foods and Disney to put some of the research on display. for our survival. " Michael A. Miles, the president of Kraft, stated at the labo­ Asked by this reporter if the current food crisis, produced ratory .dedication Oct. 7 that the purpose of the exhibit is "to in part by the drought of 1988, would change the Depart­ demystify plant biotechnology for the general public." ment's lack of support for long-term research, Lyng said that

16 Science & Technology EIR November 18, 1988 New Plant Biotechnology Laboratory at Kraft Food's Land Exhibit at Disney's EPCOT Center

not investing in research is "short-sighted." Land, Kraft has had biotechnology research under way, al­ Lyng also said that the laboratory will "stimulate young though until now it has not been open to public view. people's interest in science," and perhaps interest them in About one year ago, Kraft opened a new partof an exhibit vocations in technical fields. They will be moving into a at the Land. It is ajoint project with the National Aeronautics world "where population continues to grow and food needs and Space Administration's Kennedy Space Center, using to grow with it," he stated . soil that is a simulant of lunar soil, to do experiments that The new laboratory houses over $200,000 in research will determine how best to grow food on the Moon. equipment, donated by the Agricultural Research Service of In the Land's DesertHouse , visitors see drought-tolerant the USDA, in a 500square foot facility built by Kraft . It is crops under cultivation. These are not now being widely used the last stop in a series of greenhouse and aquaculture facili­ in many of the arid parts of the world. Salt-tolerant plants, ties toured by ,:,isitors , as they go through the exhibits on a called halophytes, are also grown in the Desert House, and boat ride. their development could lead to the reclamation of salinated . Since the Kraft Land pavilion and EPCOT Center itself soils, and could reverse the spread of deserts. opened in 1982, more than 50 million people have been The Kraft exhibit shows extensive use of non-soil-based through the exhibit. Approximately 300people perday choose agriculture in closed greenhouse environments. These in­ to learn more about tomorrow 's food technology by taking clude hydroponic systems, where the plants are grown in a an added walking tour through the greenhouses, with a staff liquid nutrient medium, and aeroponics, where the plant roots member of the Land as a guide. Since the opening of the are in the open air and periodically sprayed with a nutrient

EIR November 18, 1988 Science & Technology 17 Left . Richard Lyng. u.s. Secretary of Agriculture. speaking at the dedication fo r the biotechnology laboratory

solution. the Land; it simply moved from backstage to 'on stage.' " In the Tropics House, the visitor sees little-known crops The sponsors of the exhibit hope this laboratory, pre­ under cultivation, easily adapted to tropical climates, which sented in both an educational and entertaining way., will could increase food production in developing nations. This dispel people's fear and ignorance about some of the tools includes varieties such as the winged bean, whose seed con­ that will help eliminate hunger from the world's peoples. tains up to 37% protein, which, some scientists feel, has the potential to become the "soybean of the tropics." The promise of biotechnology In closed-environment agriculture, pest management is For many years, farmers and agricultural speci!!listshave · difficult because the elements of weather, such as wind and worked to improve the stock of crop plants on which the rain, that act upon agricultural chemicals in open fields, do world depends for its sustenance. Previous successes in cross­ not exist. Therefore , it was very importantfor the new plants breeding to produce hybrid strains of com, for example, being cultivated to be as disease-free as possible from the significantly lessened the drought damage to that crop this start. past summer. Rather than planting crops from seed, many of the thou­ The promise of one area of application of biotechnology sands of plantlets that are needed in the greenhouse exhibits is to more precisely and scientificallyalter nature to optimize at the Land are started using a tissue culture-a piece of an the productivity of agriculture. The tools include genetic existing plant from which an entire new plant can be cloned. engineering, made possible by the breakthroughs in .under­ In addition to decreasing the tillie needed to start the next standing how genetic codes for specific characteristics are generation of plants, the identical clone will have essentially �passed on to succeeding generations. A gene that controls the the same characteristics as the original, including possible expression of a desired trait, for example, can be introduced resistalke to disease. into one plant species from another, in cases where the plants As agriculture manager Dr. Henry Robitaille explained would not cross-breed. at the opening of the laboratory , "Biotechnology isn't new to This is being directly done in the Kraft biotechnology

18 Science & Technology EIR November 18, 1988 laboratory, where a graduate student is experimenting with combining positive traits of a newly developed peanut strain, with the wild peanut farmers now grow. The two varieties are sexually incompatible. Through genetic engineering, this can be bypassed, to allow for the direct transfer of desirable genes from one variety to the other, creating a new hybrid variety. According to Dr. Robitaille, tissue culture technology allows the generation of a new plant from some tissue of an existing one. This can be used to very rapidly multiply the important and improved disease-free new peanut plants in large quantity, without waiting for each plant to complete an entire growing cycle and produce seeds. Large numbers of these quickly grown new plants can then be used to produce large numbers of seeds for farmers . During the first half of this year, the Department of Ag­ riculture sponsored a series of four regional information con­ ferences titled, "Agricultural Biotechnology and the Public." These were held in Raleigh, North Carolina; Reno, Nevada; New Brunswick, New Jersey; and Minneapolis, Minnesota. Scientists presented material on the promise and achieve­ ments of biotechnology in an informative and largely non­ technical format. Dr. Ken Farrell, vice president for agriculture and natural resources at the University of California, described the pos­ The Land scientists are studying ways to propagate improved sibility of making plants immune to disease. Viruses invad­ crops . Here staffmembers examine carrot plantlets grown in test ing a cell do not reproduce themselves, but instead send out tubes. and meristem tissue takenjrom a potato plant. a genetic "message" to the host cells of the plant, to reproduce the virus. By changing one of the virus gene messages, the live virus can be made incapable of commanding the host to Sterling's tests. If doctors are able to identify the specific reproduce it. When a genetically engineered virus which will parasite early, they can avoid the use of drugs that may not reproduce invades a plant, the cell recognizes it as a worsen the disease, and can try to treat the patient as well as foreign body and builds up an immunity to future encounters possible. with the natural, disease-producing virus. The plant becomes Biotechnology is also important in shortening the time it immune. would otherwise take to improve the stock of plant species Biotechnology has already spun off other technologies used by man. Trees are a good example. Dr. Ralph Mott of which will effect the diagnosis and treatment of human dis­ North Carolina State University reported to a regional con­ eases. For example, Dr. Charles Sterling of the University of ference that emerging biotechnologies provide the firsthope Arizona reported to a regional conference on rapid tests for of surmounting one natural obstacle to breeding trees-time . diagnosing three diseases caused by parasites, which have It can require 5 to 15 years to establish seed orchards and been developed through biotechnology. seed production for better-yielding trees with higher disease Dr. Sterling developed monoclonal antibodies that rec­ resistance, Dr. Mott stated. Then, an additional number of ognize the antigens produced from Cryptosporidium, which years is needed to propagate the new variety and produce is a diarrhea-causing protozoan transmitted in polluted water. seeds. He has done pioneering work in tree tissue culture to It frequently attacks small children, and has been found in clone trees with superior qualities. That process can take from one-fourth of all AIDS victims. The parasite is a serious 5 to 15 years offthe total time of improving trees. Mott and threat to very young or malnourished children, and the or­ his associates have cloned thousands of trees that are in field ganism cannot be killed by conve�tional water treatment. tests across the southeastern part of the country. Quick diagnosis is key . The tools of biotechnology can be used to produce crop Dr. Sterling bound the antibodies he produced with a plants that are disease resistant; more drought, heat, and cold chemical that produces a fluorescent glow. Within 20 min­ tolerant; less perishable; and more nutritious. utes, the resulting reagent reacts with a smear sample from a One of the most promising applications of genetic engi­ patient, showing whether the person is infected with the neering over the past 10 years has been the development of parasite. Other parasites have been shown to react to Dr. engineered bacteria that help prevent the formation of frost,

EIR November 18, 1988 Science & Technology 19 Dr. Steven Lindow, who pioneered the research in ice-minus bacteria, to protect fr uits and vegetables, in his laboratory.

which kills between $ 1 and $3 billion of produce in the United scribe as "ice-minus," written INA -. States every year. The story of how this scientific work be­ After extensive laboratory testing of the genetically en­ came the cause celebre of this country's anti-technology gineered bacteria applied to plants, Lindow and Panopoulos extremists is instructive, and demonstrates why an educa­ in 1982 obtained approval from the National Institutes of tional effort to explain biotechnology research to the public Health to do open field testing of the bacteria on potatoes. is important. The method ofthe proposed experiment was to "preemp­ tively" colonize the plants with the INA - , giving it a head Ice-minus bacteria start as the dominant bacteria, replacing the ice-forming bac­ About half of the fruits and vegetables that are lost to teria. frost each year in this country, sufferdrops in temperature to Extensive labor<;ltory testing had already established that not lower than 23°F. Frost damage is triggered by a common this altered bacteria has no harmful effects on plants, birds, and naturally occurring bacterium-pseudomonas syringe. insects, or animals (including man), that it thrives only on This organism produces a protein that serves as the nucleus the leaves of plants and does not live long in the soil, and that for the formation of ice crystals on the plant. The bacterium it has no observable pathogenic effects of any kind. also exists naturally in a non-ice�forming variety which does That did not stop malthusian Jeremy Rifkin, who heads not produce theprot ein. This however, is not abundant enough the Washington-based Foundation for Economic Trends, and in nature to displace the destructive variety. citizens whom he organized, into trying to stop the research. Dr. Steven Lindow and Dr. Nickolas Panopoulos of the They succeeded in delaying the testing for four years . Plant Pathology Department of the University of California Even with the media on his side, however, Rifkin.did not at Berkeley conservatively estimate that about half of the win the fight. In general, the people of this country are not total lost could be saved with a non-destructive bacteria they � sympathetic to the arguement made by Rifkin that God cre­ have developed, and are now fieldtest ing. They used recom­ ated a "fixed universe," and that the law of entropy dictates binant DNA techniques to delete the one gene that codes for that we should not develop new technology to feed a growing the protein production in the bacteria, and produced a genet­ world population, as he states in his book, Entropy . ically-engineered non-ice-forming organism, which they de- The torturous history of gaining approval for the testing

20 Science & Technology EIR November 18, 1988 Nitrogen-fixingbacteria can be genetically engineered to incr.ease agricultural productivity. In this micrograph. the naturally­ occurring nitrogen-fixingbacteria. Frankia. in the shape of filaments. is seen inside the cells of an Australian pine tree.

of the the ice-minus bacteria is described in the accompany­ ing box. Testing of the treatment finally began in the spring of 1987 . Lindow reports that in the first year of a two-year test program; the behavior of the bacteria was similar to the laboratory experiments, and some frost protection of potato plants was observed. When this writer asked Lindow if there were plans for testing other crops or testing other varieties of bacteria, he said that he had no such plans at this time, because "it is too expensive." During the four years when the University of California was fightingthe environmental extremists, over halfa million

Dr. Lindow demonstrating j the spraying procedure , used in the field test l I .� experiments J to see ifhis � genetically-engineered '0 bacteria can protect � plants fromfro st. Inset: .� Frost-injured andfrost­ ;§ protected potato plants.

EIR November 18, 1988 Science & Technology 21 dollars was spent on legal briefs, preparing reports for gov­ engaged in farming, and that the ice-minus bacteria would ernment agencies, running public education events for the protect some of their crops, this was a truly irrational state­ local citizenry, and preparing a multi-hundred-page environ­ ment. mental impact report. During the testing, vandals uprooted Ice-minus research is of interest to other countries of the 100 potato plants, which the scientists had to replant, and world. Extending the geographic region where produce can paid security guards had to be placed around the test plot. be grown is one of the potential benefits of this technology, One of the most striking comments made by a local group in addition to saving.a portion of the food that is now grown of officials in one of the small towns near the test site, was but lost to frost. It is certainly possible, though distressing, that the research would have no beneficial effect on their that this work, whiCh was pioneered in the United States, community. Considering that the "community" is mainly may have to be applied somewhere else first.

Dec. 17, 85 At legal status conference, NIH agrees to follow EPA for recombinant DNA research and the uni­ versity will not challenge the EPA decision to require an Biotechnologyre search EUP. Dec. 30, 1985 EUP application submitted by Lindow. sabotagedfo r four years March 7, 1986 EPA sends out EUP for review by Sci­ entificAdvisory Panel, and other federal agencies. Sept. 17, 1982 Scientists apply to the National Institute April 17, 1986 EPA personnel do on-site inspection at of Health (NIH) for field-test approval . fieldstation Tulelake. Oct. 24, 1982 NIH Recombinant DNA Advisory Com­ April 21, 1986 In Federal District Court, plaintiffs agree mittee meeting, with the public invited to attend and com­ to vacate a preliminary injunction preventing NIH from ment. approving other deliberate release of recombinant DNA Jan. 10, 1983 NIH approval is withheld due to concerns material without EPA approval. expressed at the Advisory Committee meeting. May 1, 1986 An initial date is proposed for the experi­ March 3, 1983 Scientists submit a revised proposal for ment. testing. May 12, 1986 EPA grants the EUP application. June 1, 1983 NIH grants permission for testing. June 2, 1986 Modoc County Board of Supervisors passes Sept. 14, 1983 Lawsuit filed against NIH claiming vi­ resolution opposing the experiment. olation of EPA and Council on Environmental Quality June 11, 1986 Siskiyou County Board passes resolution regulations, by Jeremy Rifkin, et al. opposing the experiment. Sept. 30, 1983 The university classifiesthe fieldtest as July 23, 1986 University issues press release on inten­ categorically exempt from CEQ oversight. tion to proceed with experiment on Aug. 6. May 16, 1984 U.S. District Court enjoins NIH from Aug. 1, 1986 Californiansfor Responsible Toxics Man­ approving the deliberate release of recombinant DNA agement of Tulake apply for restraining order, which is products until it reaches finalju dgment on potential envi­ denied. ronmental impact. Aug. 4, 1986 Same group reapplies again, to a different Dec. 27, 1984 Scientists notify the EPA of intent to judge. conduct fieldtes ts. Aug. 19, 1986 Legal agreement reached that the Uni­ Dec. 31, 1984 Office ofSci ence and Technology Policy versity will conduct further environmental review before in the White House publishes proposal under which cer­ proceeding with the fieldtest experiment. tain deliberate releases of recombinant DNA may go to Sept. 18, 1986 Notice of Preparation of Draft Environ­ the EPA for approval, instead of NIH. mental Impact Report (EIR) by the university. Jan. 21, 1985 NIH releases their evaluation that there Oct., 1986 University places ads in local newspapers is "no significant impact" for the experiment. announcing public meetings. Feb. 15, 1985 EPA risk assessment states there is slight Oct. 16, 1986 University holds public meeting . on risk but insufficientevidence to proceed. "community concerns." March 15, 1985 EPA recommends the university have Dct. 25, 1986 University sends notices describing the an Experimental Use Permit (EUP). test to 2,500 post office addresses in the area. April 24-May 17,1985 NIH receives letters on the need Dec. 17, 1986 University issues draft EIR. for an Environmental Impact Statement. Spring 1987 Experimental testing begins.

22 Science & Technology EIR November 18, 1988 Nitrogen-enhancing bacteria Office of Technology Assessment released a report titled, There are other important microorganisms that are now "U.S. Investment in Biotechnology." According to Robi­ being genetically engineered to increase agricultural produc­ taille, thereport emphasized that federal supportfor research tivity. Scientists at the University of Florida are examining in crop plants has been neglected by Congress, and must be the use of blue-green algae, called cyanobacteria, to enhance. increased. the delivery of nitrogen to plants. He stated, "The potential impact of biotechnology on all -The nitrogen required for plant growth is usually supplied aspects of life in the next century are truly mind-boggling. either by the farmer in the form of ammonia fertilizer, or by The economic consequence to the U.S. of losing the lead in the biological fixation of nitrogen in the atmosphere by bac­ biotechnology to our competitors, is staggering." teria accompanying legume plants, such as soybeans and Dr. Young reportedthat, according to the USDA, 50,000 peas. additional young men and women are "needed every year to In the natural process, the nitrogen fixation, or metabolic maintain our agricultural enterprise." Of these, he stated, assimilation of atmospheric nitrogen by microorganisms, is 29% should be scientists and engineers. In one of the De­ catalyzed by an enzyme called nitrogenase that is present in partment's regional conferences, Dr. Young had comment­ the bacteria. Some bacteria produce ammonia, and rather ed, "Regulatory restraints are inhibiting innovation and com­ than using it for their own growth, they pump it out and make mercialization." it available to surrounding plantroots. However, in naturally As in such fields as superconductivity, the United States occurring bacteria, nitrogen fixation is very energy-inten­ can easily lose the lead in biotechnology. One outcome of sive, and the energy is taken from the surroundingplant. theKraft exhibit will hopefully be not only to dispel the fears Dr. K.T. Shanmugum and colleagues at the University and myths the public may have about these frontier technol­ of Florida have been studying nitrogen availability in grow­ ogies, but also to increase awareness of why this research ing rice. Specificallyin rice paddies, the free-living nitrogen­ should have a higher priority and funding profile , fixing bacteria do not release the fixed nitrogen, but use the ammonia for their own growth. To increase the productivity Marsha Freeman is an associate editor a/ 21st Century Sci­ of the crop, researchers have been experimenting with a ence & Technology magazine. mutant strain of cyanobacteria where the fixednitrogen is not assimilated by the bacteria, but, rather, is made available to the plants. In these experiments, rice plants grown with the altered bacteria, called SA- I, had an eightfold increase in dry weight KEEP UP WITH MARS on compared to the control group, which had been given no nitrogen supplements. The rate of growth was 18 times high­ er, and not significantly different from that of plants that had $12 each (postpaid in been fertilized. The scientists hope that the bacteria can sup­ U.S.lCanada) plement growth in cases where fertilizers are not yet avail­ able. $10 each The total nitrogen content of the plants in the experiment for more than one (postpaid to demonstrated that the SA-1 bacteria did supply them with same address in nitrogen for growth, because their nitrogen content was 5.8 U.S.lCanada) times larger than the control group, though it was lower than the fertilized plants. In these experiments, the amount of SA­ This 10" x 14" calendar features 12 beautiful four-color il­ l added was low, and it has been reported that the effect is lustrations of the Moon and Mars, including original art for a Mars city, industrialization on the Moon, and lunar enhanced with more concentrated treatment. and space vehicles. The calendar follows a Mars year in These two specific examples of ongoing research in ge­ Earth time. netic engineering in agricultual biotechnology are a very Send check or money order to: For Christmas delivery, orders small sample of the broad range of research under way. 21st Century Calendar must be received by Dec. 1. For foreign deliveries add $3 P,O. Box 65473, Dept. E per calendar. Payment ac­ Washington, D.C. 20035 Crucial factors: education ,and funding cepted in U.S. currency only Enclosed is $ __for __calendars

In a two-hour seminar held after the formal dedication Name: ______

ceremonies on Oct. 7 at the Kraft pavilion, Land manager Address: ______Dr. Robitaille and Dr. Alvin Young of the USDA stressed City State Zip ___ that funding and skilled manpower are key to continued prog­ Subscribe to 21st Century Science & Technology. $20 for 6 ress in this field. issues (U .S,). Send $4 for sample issue. Published by the for­ mer editors of Fusion magazine. Dr. Robitaille reported that, recently, the congressional

EIR November 18, 1988 Science & Technology 23 )]illFeature

The third trial of Socrates: U. S.A. vs. Lyndon LaRouche

by Nancy Spannaus

When the Boston federal case against Lyndon LaRouche and several associates fell apart in May of 1988, and it was revealed that the jury had polled itself and voted for acquittal of all defendants, it would have appeared that the government prosecution against LaRouche would founder. For not only was a mistrial de­ clared, but the government's patternof blatant misconduct against the defense was a matter of notoriety among the legal profession, not to mention the jury itself. The defendants had been cheated of an acquittal by the government delaying tactics, but the prosecution had egg all over its face. But on Oct. 14 in Alexandria, Virginia, the federal government announced new indictments against LaRouche and six associates, for substantially the same class of "offenses." This time, in contrast to Boston, the prosecution was deter­ mined not to be caught in its misconduct and other illegalities. The tactic which it chose, was to take advantage of the local custom in the federal district court of Virginia, which is known nationally as the "rocket docket." Through'this forced march, the governmentintended to push through the entire prosecution in-l.essthan two months. This tactic is geared to preventing the defense from being able to get the information which it needs to rebut the charges from the government, from having time to conduct its own investigation of the particular charges, and from actually presenting an adequate case to the jury. Why is the federal government going to such lengths to destroy the statesman LaRouche? Because, to the political establishment which runs the United States, LaRouche is not just another politician. To the establishment, LaRouche is the "modern Socrates," who must be eliminated if it is to maintain its power through the upcoming period of strategic, economic, and political crises, which will bethe worst since the Black Death of the fourteenth century. Although Judge Albert V. Bryan, Jr . has not yet decided what evidence he will allow in the trial, he has shown himself insensitive, to say the least, to the defendants' constitutional rights to have the time to prepare a defense. Having admitted that he is pushing the defense a bit hard, he has nonetheless insisted that the trial go ahead on Nov. 21.

24 Feature EIR November 18, 1988 Socrates teaching: a detail from Raphael's "The School of Athens," Vatican, 1510.

The only potential for stopping it, depends upon the Fourth is based on the interpretation of the Socratic method adopted Circuit Court of Appeals, based in Richmond, Virginia. On by the Christian humanists of the Italian Renaissance peri­ Nov. 9, the defense filed a petition asking that court to direct od." On the negative side, "all of my bitterest enemies, such Judge Bryan to vacate his order setting the trial date, on the as Stone and the Communists, are in the tradition of thos� grounds that this violates the defendants' rights to a fair trial. ancient Syrian Magi who were behind the trial of Socrates, As it stands, the defense would only have five weeks from and who ordered also the trial and crucifixion of Jesus Christ the time of arraignment to trial. later." LaRouche elaborated. "If one knows European history, The Socrates comparison there is nothing astonishing in that comparison. Friedrich Since 1986, LaRouche's supporters have characterized Schiller, writing as professor of history at Jena University, the assault against him as the Third Trial of Socrates. As said that all of modem European history is fundamentally a LaRouche himself pointed out in his last television broadcast quarrel between two traditions. On the one side, there is the of the 1988 election campaign, his enemies were the first to tradition of Solon of Athens, a tradition to which both Soc­ bring up the Socrates comparison. The New York Times pub­ rates and I happen to belong. On the opposite side, there is lished a feature article back in the 1970s, by a notorious old the tradition of Lycurgus's Sparta, to which both the left­ former Communist fellow-traveler by the name of I.F. Stone, wingers like Stone and the fascists belong." who argued that the ancient Greek sage Socrates should have LaRouche's charge that he is being targeted by the gov­ been convicted for "corruptingthe youth." Investigators who ernment because of his philosophical-political commitment interviewed Stone learned that LaRouche was the "modem to the outlook of Socrates, is borne out by the facts, as we Socrates" he had in mind. shall preview a bit here, and as the trial itself should show. Socrates was the Greek philosopher who was condemned The cabal within the Justice Department that has determined to death by a jury in Athens in 399 B.C. for "corrupting the to "get LaRouche," has a violent philosophical disagreement youth." While he accepted the verdict, he asserted to the end with him, which is reflected on questions ranging from eco­ that he was being killed because he had dared to offend the nomic development to relations with the Soviet Union. There citizenry by telling the truth. Research has shown that the is massive evidence of a systematic campaign of financial entire prosecution was guided by Athens' top political lead­ and other harassment against LaRouche and his associates ers, with the support of their Persian patrons. going back to 1969, before he even ran for President. As LaRouche himself considers the comparison useful. In LaRouche's influence has grown internationally, that cam­ his words, "On the positive side, all of my work, whether in paign has become increasingly violent, to the point of a economic science, in the fine arts, and in political strategy, military raid on the town of Leesburg, Virginia, and of an

EIR November 18, 1988 Feature 25 unprecedented involuntary bankruptcy seizure of three cor­ porations which published and disseminated writings of LaRouche and his friends. Just what is it about LaRouche that has driven a cabal of Social Democrats, professional prosecutors, communists, and gangsters-with the backing of the highest levels of the Es­ tablishment-to persecute him as relentlessly as the Greek oligarchy, backed by Persia, did Socrates?

The tyranny of reason Both the Boston and Alexandria indictments are notable for the vagueness of their charges. Both center on charging "conspiracy" to commit alleged crimes, in a manner widely recognized as the last resort of political prosecutions. The current tax indictment against LaRouche, for conspiracy "to defraud the United States by impeding, impairing, obstruct­ ing and defeating the lawful function of the United States Treasury Department, Internal Revenue Service, in the as­ certainment, computation, assessment and collection of the revenue," is among the more bizarre in the history of tax law. LaRouche is not charged with actual tax evasion. What comes across in both indictments is the rage of the government that the corporations which LaRouche's friends set up, and LaRouche's presidential campaigns, were actual­ The latest treatise by I.F. Stone. the fo rmer Communist fe llow­ ly able to raise the money to carry out their political activities! traveler who argues that the Athenian jury was right to convict Socrates fo r "corrupting the youth." The fact that the campaigns or the publishing houses had difficulty paying their debts, or that there were chargebacks or customer dissatisfaction, was nothing unique to the La­ "The contemptuous view of non-members, and grandiose Rouche campaign, or these publishing corporations. Nor did thinking about their own historical mission is at the root of these difficulties necessarily involve LaRouche, who only the criminal charges facing group members , former members had a position of fiduciary responsibility vis-a-vis the politi­ and law enforcement officials say ." cal campaigns themselves. Where does this argument come from? Directly from the But there is a theory that comes across in the govern­ gutter! The dirty underside of this argument has been spread ment's argument, a theory which is central to "selling" the luridly across the pages of magazines such as the drug lobby's argument to the jury and the public, which has been plastered High Times magazine, where "LaRouche experts" such as all over the news media in slanders since 1974. That theory Chip Berlet and Dennis King have published their pioneering is that LaRouche is an "authoritarian" personality, who runs work. The screaming headline of one of these articles is, a "totalitarian" organization devoted to "imposing" a moral­ "They Want to Take Your Drugs Away," and that, in a sense, ity on the United States citizenry . Since LaRouche, as a says it all. The source of the claim that LaRouche is-"author­ private citizen, and his associates can actually "impose" itarian" is that he opposes the counterculture, including the nothing, the charge is quite an hysterical one. What actually drug culture, on both a personal and societal level. It is his galls the prosecutors is that LaRouche and his associates are stand for morality, and the social policies which would ac­ campaigning for moral purposes, and have won support. tually further it, that upsets his enemies. A more direct expression of what the government com­ The drug issue, in fact, provides a touchstone for the plains about has appeared regularly in articles in the Wash­ entire political line-up vis-a-vis LaRouche and his move­ ington Post. One on the Boston trial , by "LaRouche expert" ment. Speed freaks from the left and libertarians from the John Mintz , put it like this: "Law enforcement officials and right both violently resist the outlook of the man who outlined experts on the group say that the key to understanding the the War on Drugs, long before the Reagan administration charges in the trial . . . is not something that can be summed picked up the term. Anarchists on the left and free enterpris­ up in an indictment. The key, they say, is in the members' ers on the right both insist on the rights of drug "entrepre­ arrogan� about themselves and their position in world his­ neurs" and bankers to their "freedoms." It is an issue which tory, the attitude ...that these-fools-better-turn-to-Lyn-be­ unites the highest levels of the oligarchy and the lowest level fore-it's-too-late . " thugs. As far as organized forces go, the major forces sup­ Another Washington Post article took the same angle: porting this outlook, and funding operations against La-

26 Feature EIR November 18, 1988 Rouche, are the international Social Democracy, the bank­ ment of FBI agents and others to interfere with the political ers, and, of course, the Soviets. operations of the LaRouche movement. Additionally, much In reality, what is charged to be "authoritarian" is what of this material was already set forth in the Boston trial by used to be the standards of Judeo-Christian morality. What the defense-so effectively that the prosecution is ,desperate is today charged to be "cultist" was 20 years ago the norm. to try to rule it out here. The views of the extreme leftin the 1 960s and 1970s are nbw Let's review some of the leading features: being adopted by the federal government,as a basis for trying The first record of government attack comes as early as to make believable the idea that LaRouche is a "totalitarian" 1969, when the FBI itself issued a leaflet attacking a close who controls every word and deed of people around him, and associate of LaRouche, in an intervention in favor of the uses his personal power for sinister purposes. Mark Rudd anarchist faction in the Columbia University As a pretrial request by the defense puts it, "Defendants Students for a Democratic Society. will show that the theoretical basis for the government's In 1973, information released by the FBI shows that it characterization of LaRouche and the NCLC [National Cau­ was aware of the intention of the Communist Party U.S.A. cus of Labor Committees] is drawn from a political and to "eliminate" LaRouche, but did nothing to warnhim, much philosophical current which is bitterly hostile not only to that less to protect him. This, along with other massive evidence, of LaRouche, but to the basic philosophical traditions of rather points to a long pattern of collaboration between the Western Civilization. Defendants expect to argue this to the FBI and Moscow-directed circles to try to silence LaRouche jury in order to prove malice and the motivation for this and his movement. prosecution." In 1974, the Social Democratic leadership of the United Autoworkers, in collaboration with circles around the Justice Tbe 19-year witchhunt Department, attempted unsuccessfully to shut down the At the hearing on pretrial motions held before Judge newspaper of theLaRouche movement. Albert V. Bryan on Nov. 10, Assistant U.S. Attorney from As soon as the National Caucus of Labor Committees, Boston- John Markham, who has joined the Alexandria pros­ the philosophical association founded by LaRouche, was ecution team, argued that if the defendants were allowed to established, the FBI began "investigating" it on the basis that present the evidence which they wanted on the pattern of it was a "subversive" organization, and launched under that government harassment, they would be putting the govern­ pretext a massive campaign of intimidation, surveillance, ment on trial as to the reason that loans were not repaid. and pettyarrests against supporters all around the country. In Markham was speaking on behalf of a governmentmotion to 1977, the investigation had to be officially dropped. limit evidence, so as to prevent the presentation of "priorFBI In 1978, however, what could be called the "secret gov­ investigations; asserted infiltrations of the LaRouche organ­ ernment" went into operation. The trigger appeared to be ization by informants; other criminal and civil proceedings; LaRouche's launching of a movement for a War on Drugs, and the institution of involuntary bankruptcy proceedings in which attacked the financial backers of the drug trade, back this District." "It is the position of the governmentthat these to primarily British institutions, but also named numerous incidents essentially are irrelevant," the government papers institutions currently run by nominally Jewish families, such conclude. as the Bronfmans of Canada. Rushing to the defense of these As of this writing, the judge has not ruled on this govern­ filthy operations was primarily the Anti-Defamation League ment motion. Should he rule for the government, it will be of B'nai B'rith, which demonstrated itself over and over one of the worst travesties of justice ever seen. again to be operating as an adjunct to the FBI. This resulted The reality is that Social Democratic factions in the De­ in a wave of police and press harassment, that was only to be partment of Justice, along with their allies in the Democratic surpassed in the period of 1983 to 1986. party, the communist movement, the bankers, and others, With the onset of the Reagan administration, there was have been engaged in a war of extra-legal harassment against an opening to LaRouche's influence in certain high policy LaRouche and his associates since 1969. The negative press circles of the government. This opening, whose most clear coverage and the financial difficulties which the defendants reflection came with the adoption of the Strategic Defense have been subjected to, are the direct result of this campaign. Initiative in March 1983, nearly drove LaRouche's enemies A look at the actual pattern of harassment reveals the opera­ berserk. tions of a virtual Gestapo against anyone who has anything One of the key victories for the filthy circles in the gov­ . to do with LaRouche. ernment who opposed LaRouche in this assault, occurred in Highlights of this operation were reviewed in the motion the Alexandria federal district court in 1984. In response to a for dismissal of the case on the basis of "selective and vindic­ libel suit filed against NBC-TV by LaRouche, the court and tive prosecution," which was submitted by the defense in prosecution turned the tables and ended up finding laRouche Alexandria. Other aspects were requested in the motion for guilty of harassment of the media! This outrageous decision, release of evidence from the government, about its deploy- which confirmed the end of libel law in the United States,

EIR November 18, 1988 Feature 27 made it "fair comment" to libel LaRouche and his associates in the most false manner imaginable-an indispensable ele­ ment in building up "public opinion" against him and his movement. This period saw the addition of an obvious new compo­ nent to the government-led assault against LaRouche and his associates. This was the involvement of the Soviet Union and The 'autboritarian its representatives in the nationally coordinated legal assault against LaRouche. A chronicling of this assault-including personality': an hundreds of FBI visits to contributors , hundreds of instances of bank interference, thousands of slanderous newspaperar­ anti-Western hoax ticles, and more than a dozen grand jury investigations­ would filla warehouse with documentation. by Michael Minnicino It is this assault, which anonymous governmentof ficials freely admitted was intended to shut down financiallyorgan­ izations associated with LaRouche, that the federal govern­ The idea of "authoritarian personality," like so many con­ ment now blatantly seeks to rule out of the defense. cepts in sociology, is a fraud constructed to discredit repub­ licanism, particularly its American form, and to protect The moral fitnessto survive Marxism. If we are to believe the people who coined the term Since the onset of the federal investigation against La­ and first wrote on the subject, the authoritarian personality is Rouche in October 1984, thousands of individuals from the anyone who thinks that scientific and technological progress United States and other countries have come forward to con­ can and should occur under capitalism. demn the government's politically motivated assault. This To use the words of the concept's chief proponent, Dr. support has helped prevent the overwhelming power of the Max Horkheimer, the dividing line between the authoritarian state from destroying a private individual and the self-fi­ and the non-authoritarian is "the first chapters of Genesis." nanced popular movement associated with his ideas. The cost If you have the arrogance to accept the Old Testament's of the defense has been enough to crush anyone-costing at mandate to have mastery over nature , then you have stepped least $5 million in direct legal costs over the past four years. over the philosophical threshold that justifiesma n's mastery And now the government, with its seemingly unlimited funds, over other men. Thus, according to Horkheimer, the ultimate is pressing ahead once more. roots of fascism lie in the Holy Bible. For every individual who has come forward to defend It is not that Dr. Horkheimer's fears were derived from LaRouche, however, there have undoubtedly been 10 or more his deep concern for the human rights of the individual. At who have buckled under to the pressure of "popular opinion," the very same time that he was writing of the dangers of or the direct police power of the FBI. The American people authoritarianism, Horkheimer werit on record opposing one as a whole have demonstrated themselves to be gullible sheep, of the campaign planks of 1948 independent presidential who will not fight the power of repression, at least under candidate Henry Wallace. Wallace had proposed that the currentcondition s. Morerepr ehensible yet, have been those federal government provide all American schoolchildren with in positions of local, state, and national authority who have a pint of milk a day. Such a proposal was dangerous, said quietly worked with LaRouche's associates and appreciated Horkheimer, because it would tum the mind of the electorate his ideas, but refused to come forward in defense of his toward the "needs of body satisfaction," and away from more political rights. important issues; a well-fed child meant parents less enraged Lyndon LaRouche is the pre-eminent anti-Establishment with the currentpolitical system, and less inclined to make a spokesman in the United States, a man who has dared to revolution. campaign for a revivalof the ideas of the American Revolu­ The vicious Dr. Horkheimer was the director of the Insti­ tion in a period when they have been all but buried, and to tute for Social Research (ISR), also known as the "Frankfurt name the names of those who have carried out dirty deals to School," and the school of "Critical Theory ." Under him, the destroyboth the United States, and Westernciviliza tion as a institute created the concept of "authoritarian personality," whole. and made it-and the fraudulent methodology behind it­ Will enough people come to understand in time, that the acceptable in the scholarly world. This academic fraud was successful destruction of LaRouche and his movement would but one part of the institute's avowed goal: to undermine be the nail in the coffin to constitutional law in the United Judeo-Christian culture, and make Western civilization sus­ States? The answer to that question will indeed decide wheth­ ceptible to being overthrown. This purposewas explicit since er or not .the American population has the moral fitness to the ISR's founding meeting in 1922, held under the direction survive. of Communist International official Georg Lukacs.

28 Feature EIR November 18, 1988 The Frankfurt School, as we shall see, is the Soviet secret unconscious lawfulness which is always lacking in the works service's most important cultural warfare operation against offree reflection." To recapture this lost harmony with nature the West. necessitates a rejection of "patriarchal" rationalism, in favor of knowledge based only on racial imagination. Bachofen The attack on reason concludes that this would best be served by a revival of the The first studies on the "authoritarian personality" were Magna Mater/Great Mother cult of the Roman Empire. begun by the ISR in 1936. The institute was then in exile Although Bachofen directly influencedthe United States from Hitler's Germany, and its personnel had scattered to only very late (the firstEnglish translation of his Mutterrecht France, to the headquarters ofthe InternationalLabor Organ­ was produced in the 1960s), his impact on European thinkers ization in Geneva, and to Columbia University in New York during the second half of the 19th century was immense. City. In that year, manuscripts were prepared for an edition Jakob Burckhardt, Bachofen's co-national and childhood to be titled Studien uber Autoritiit und Familie (Studies on friend, applied the latter's theories to the history of the Italian Authority and the Family). The huge document rested upon Renaissance, and came up with the bizarre analysis that the three theoretical essays; one was by Horkheimer; the other development of Christian Humanism was actually a blow to were by two ISR members better known to recent genera­ culture, because it advanced reason over imagination. (In tions�Herbert Marcuse and Erich Fromm. 1986, Lyndon LaRouche was attacked by the Moonie-owned Contemporary readers may be shocked to findthat almost Washington Times because he accepted the title; "Renais­ every concept and catch-phrase of the 1960s-that wild era sance man"; the columnist used Burckhardt to "prove" that when youth were counseled to trust no one over 30-can be support for the ideas of the Renaissance demonstrated total­ found verbatim in this 50-year-old document. itarian tendencies.) Here, for the firsttime , Marcuse laid out his famous ideas about "hedonism" and "liberation": Freedom can never truly Powerful sponsors exist under capitalism, for the latter imposes "technological The unproven (and unprovable) cult nonsense represent­ rationality" which "mechanizes and standardizes the world," ed by the original 1936 studies by the Frankfurt School, might and inevitably decays to an authoritarian society. Thus, all well have remained obscure, had not the school secured pow­ capitalist states tend to fascism because of their adherence to erful sponsors. Negotiations were held with Columbia Uni­ technological progress. Popular rage at the alienation caused versity President Nicholas Murray Butler at the instigation of by technology occasionally breaks out, but this is mere re­ historian Charles Beard, anthropologist witch Margaret Mead, belliontempered by reason; the only path to true liberation, and Stalinist sociologist Robert Lynd (all of whom had pub­ concludes Marcuse, is hedonistic revolution, "the unpurified, lished in the institute's journal). With funds arranged from unrationalized release" of sexuality. sources like the Rockefeller Brothers Fund and the Emergen­ Marcuse is complemented by the essay by psychoanalyst cy Committee for Displaced European Scholars (headed by Erich Fromm. Psychically, technological progress is the Edward R. Murrow, before he became a newscaster), the movement away from maternalismto paternalism. As it de­ institute was offered a semi-permanent home at Columbia. velops, capitalism becomes increasingly paternalistic and In 1942, the institute received a joint contract from the oppressive; when society breaks down, as under an economic American Jewish Committee and the Jewish Labor Commit­ crisis, the "father" suddenly disappears, and the terrified tee to expand their work on authoritarianism, with particular citizenry clamors for a harsh, new father in the form of a reference to the rise of Nazism. Briefly,the institute officially fascist leader. became the Research Division of the AJC, before its mem­ Fromm's solution is a revolutionary returnto matriarch­ bers redeployed into key positions in the research depart­ ism. What he means by this, is the submergence of the indi­ ments of the OSS, the Office of Naval Intelligence, the Office vidual in a primitive socialism which he likens to Virgin for War Information, and the State Department. worship by the early medieval Church. Work commenced on a five-volume project that contin­ This theory is lifted, as Fromm admits, from the work of ued publication into 1949. One volume was a psychoanalytic the Swiss J.J. Bachofen (1815-87), who was Karl Marx's study of anti-Semitism by Marie Jahoda and Nathan Acker­ classmate at the University ofBerlin lectures oflaw professor man, both of whom would later become board members of Karl von Savigny. Bachofen transPosed von Savigny's psy­ the Tavistock Institute of London, a British Intelligence think chotic theories of the racial det�rmination of law to what tank responsible for, among other things, the MK-U1tra proj­ would be later called "anthropology." ect to foster the use of hallucinogenic drugs in the West. In his most famous work, Mutterrecht (MaternalLaw) , Another was a subjective account of anti-Semitism in Ger­ Bachofen posited that the most important cultural products many by Paul Massing, a member of the institute who had of a race are expressed as symbols and myths, "the products spent time· in a Nazi concentration camp. Both Massing and of a cultural period in which life had not yet broken away his wife were Soviet agents, by their own later admission. from the harmony of nature , [they] share with nature the The centerpiece of the series was The Authoritarian Per-

EIR November 18, 1988 Feature 29 sonality, by Teodoro Adorno and Else Frenkel-Brunswick. cepts of civilization are in a process of rapid decay. . . . The For the wider American audience, Adorno and Frenkel sig­ decisive among them was that of reason. . . . The atomized nificantly downplayed the cultism of the previous version. and disintegrating men of today . . . have abandoned the ego To give the illusion of "objective science," the extravagant in which all prudence and all stupidity of historical reason, theories of 1936 were reduced to questionaire items which as well as its compliance with domination, was sustained. constituted several "scales." The first was the "AS-scale," The progress of reason that leads to its self-destruction has which purported to measure the anti-Semitism of the re­ come to an end." spondent; an "E-scale" measured ethnocentrism; the "PEC­ This is the "authoritarian personality. " Only a liberal who scale" stood for "political and economic conservativism." believesthat "everyone has a right to their own opinion," and All three ofthese scales could be correlatedto the "F-scale," distrusts everyone who attempts to be governed by reason, which alleged to determine who had the predilection to tum would not fitthe Frankfurt School's definition. fascist under certain conditions. There are two obvious absurdities here. The first is the method itself. The study claimed that fascism can be resolved to, in the words of the authors, "an ideal anthropological The central problem with the type." That is: a combination of breeding and life experience (all reducible to yes/no questions) determines who is a crypto­ attempt to transpose BolsheVism to fascist just waiting for the social "trigger" that will tum him the West, said Lukacs, is that into a full-blown, blackshirt-wearingNa zi. Western Civilization's cultural This is identical to the old saw that the "American Black type"carries the predilection to dance well, and be good at matrix is based on reason, and on sports. Herein, the racist roots of the Frankfurt School in the domination of nature Bachofen and von Savigny are, perhaps, most clear. How­ (technological progress). ever, this aspect of the study was not attacked by the scholarly community, and, in fact, as sociological historian Alvin Gouldner reports, this method, with its claim that contructs like "alienation" could be "scientifically"measured , became the dominant methodology in postwar sociology. But, the creation of such pliant liberals is exactly what The second problem was the study's blatant pro-com­ the Frankfurt School was set up to do. munist bias. Here, at least, some contemporary critics de­ murred: Why is it the "F-scale"? Are fascists the only kind of 'Just a student meeting' authoritarians? Why not a "C-scale" to measure communist The founding meeting of the Institute for Social Research predilection, or a more neutral "A-Scale"? Further, it was tookplace in the German region of Thuringia, in the summer objected, the authors couldn't even get the PEC scale data to of 1922. The exact date and place 'are unclear, as no records correlatewith the F-scale, even though it was clearly weight­ werekept. Hede Massing, a repentant Communist spy, refers ed to do so. to it in her confessional memoirs only as a "Marxist student Adorno answered, that since the authoritarian was an meeting." The list of attendees suggests something more than "ideal type," there was no need for statistical correlations; that. the PEC scale was valid, he maintained, because the desire • The Communist International (Comintern) wasrepre­ to maintain the status quo under a clearly degenerating capi­ sented by Georg Lukacs, the Deputy Commissar of Culture talism was itself suspect. The issue of communistauthoritar­ and Education for the short-livedHungarian Soviet Republic ianism was easily side-stepped in a period when the Soviet of 1919; Lukacs'sComintern code-name was "Number One," Union was our ally, and the horrors of Nazism werebecom­ He was accompanied by Bela Fogarasi, his assistant in the ing known in detail; under any circumstances, the Frankfurt Hungarian Revolution, and member of the Hungarian secret School said, authoritarianism under socialism could only be police. an aberration, since true fascism was an extreme form of • Karl Korsch, professor of social studies at Frankfurt capitalism. Thus, socialist mistakes must always be forgiven; University and tradeunion expert for the German Communist as Marcuse would write later: "Liberating tolerance would Party (KPD), was probably recruited to the British secret mean intolerance against movements from the Right, and service during a long stay in England in 1912. Korsch was toleration of movements from the Left." later kicked out of the KPD, and finally made his way to The final analysis was given by director Horkheimer. In America, wherehe became an influential non-party intellec­ an essay from the wartime period, Horkheimer admits that, tual. for the Frankfurt School, the ultimate authoritarian is any • Richard Sorge had just been made assistant director non-socialist who demands reason: "The fundamental con- of Korsch's department at Frankfurt. This position was a

30 Feature EIR November 18, 1988 cover, arranged by the KPD; Sorge's real job was to head the that first meeting. It was dominated by Lukacs, the highest KPD's secret intelligence section in the Frankfurt ea.ar In ranking official there. Perhaps he started with the statement 1929, Sorge transferred to Red Army Intelligence, and was with which he started a then-recent book: "Who will save us assigned to the Far East, where he set up the Soviet Union's from Western Civilization?" espionage network in Japan. The Japanese Imperial Al1IJY Lukacs outlined how his own revolution in Htihgaryhad - executed him as a spy in 1945 . lasted only 133 days; the recently crushed Bavarian Soviet in • Karl August Wittfogel was a teaching assistant at the Germany had not survived much longer. The only healthy Frankfurt Social Studies Department. When the Nazis came revolution was the one in Russia. This, said Lukacs, was due to power, he was immediately sent to a concentration camp, to the cultural differences between Russia and the West. The but was soon released, when his friendProf. Karl Haushofer, Bolsheviks were able to appeal to the "messianism" of the the ghost-writer of Hitler's Mein Kampf, intervened with the peasant-dominated Russian population, and unleashed an al­ Fuhrer. Wittfogel was brought to the United States with most uncontrollable "daemonism" which led to the over­ Rockefeller brothers funds, and became head of the Institute throw of the Czar. The Bolshevik Revolution was essentially for PacificRelati ons, where he cooperated with Sorge's So­ a religious phenomenon-an "unrelenting and rigorous" re­ viet networks in the Far East . ligious cultism, like the most irrational forms of medieval • Julian Gumperz had just started the Ph.D. program Christianity. at the Social Studies Department; he attended with his girl­ The central problem with the attempt to transpose Bolshe­ friend, Hede Eisler, who was still married to graduate soci­ vism to the West, said Lukacs, is that WesternCivili zation's ologist and KPD editor Gerhart Eisler. cultural matrix is based on reason, and on the domination of -Gumperz was the founder of a magazine, Der Gegner, in nature (technological progress). The West does not believe the.orbit of the KPD. The party sent him to Moscow in 1923, that the world "has been abandoned by God," and thus people where he was recruited officially to the Red secret service. react to adversity with hope, rather than unmitigated rage. He later gave Der Gegner to Franz Jung, a friend of Lukacs If Bolshevism were to succeed in the West, then the from before World War I; Jung was a member of a self­ assembled social scientists must commit themselves to shift described "cult of Astarte," based on the theories of none the West away from Judeo-Christian culture. They must study other than J.J. Bachofen. Jung made it the official journalof the artifactsof culture, and understand how to discredit those the Young German Order, a Pan-European group allied to which foster cultural optimism, and how to create those which the Gregor Strasser wing of the Nazi Party. Jung broke with foster Ku[turpessimismus-"cultural pessimism," a phrase the Nazis in 1933, because the Nazis had turned anti-Soviet. that the Frankfurt School used totemistically over the next 50 Der Gegner's staff went underground, and most of them years. became the nucleus of the Rote Kapelle (Red Orchestra) , the Lukacs then outlined what in recently discovered notes Soviets' most important spy network in Nazi Germany. he called, "The Dostoevsky Project." Western man's sense Gerhart Eisler came from an important Communist fam­ of mastery over Nature must be replaced with the understand­ ily. His parents were close friends ofAlexander Parvus, the ing that he has "not a personal destiny, but the destiny of a Venetian spymaster who funded Lenin's rise to power in community," in a world "abandoned by God." "The model Russia; his sister Ruth was on the secretariat of the KPD; he of the new man [in the West] is Alyosha Karamazov," Lukacs himself became the Comintern' s plenipotentiary representa­ asserted, referring to the character in Fyodor Dostoevsky's tive to North America. Brother Hans Eisler also came to novel The Brothers Karamazov, who gives up all sense of America, but to Hollywood, where he became a composer of selfto become a Russian Orthodox mystic. Alyosha loses all movie scores; after the war, he collaborated with the same potency by entering "the sphere of pure soul-reality in which Teodoro Adornoon a textbook for the composition of movie man exists as man, neither as social being, nor as ...isolat­ music-it is still used today. Hans was deported in 1949, ed, unique, pure ....Dostoevsky 's utopia [is] a state of the and went to Communist East Germany, for which he com­ world in which men may know and love each other, in which posedthe national anthem. culture and civilization will not be an obstacle to the devel­ The fickle Hede left both Hans and Julian, and married opment of men. The spontaneous, wild, and blind revolt of Paul Massing, another Frankfurt sociologyPh .D. They came Dostoevsky's characters occurs in the name of a golden age. " to America in 1935, where they acted as Cominterncouriers , Lukacs's theory carried, that day in 1922, and for the and as the organizers of the NoelF �eld-Alger Hiss espionage next 50 years the Frankfurt School manufactured forms of network in Washington. culture-they called their enterprise a "culture industry"­ Nobody here, but us sociologists! to undermine Western civilization and the power of reason itself, on behalf of the Comintern and its successors. The The Dostoevsky project concept of the "authoritarian personality" is just one of those Based upon case histories of the individuals involved, subversive contributions. and subsequent developments, we can credibly reconstruct To be continued.

EIR November 18, 1988 Feature 31 Western Alliance, sm, and the solution of the debt crisis. As an economic scientist, he has fought since 1975 for the creation of a new just world economic order which, since that time, has been recognized as the only concrete possibility to bring economic policy in accordance with Christian mo­ rality again. Therefore , in the so-called Third World, his name is a symbol of hQpe for a life worthy of human beings. Lyndon LaRouche stands as the unwavering representa­ tive of Western civilization. As in the field of natural science, he has made outstanding contributions in defense of classical International figures music, the arts and culture generally. In the middle of a crisis of such apocalyptic proportions, we cannot tolerate the fact that such a man, whose morality speak. out against equals his powers of mind, be subjected to dirty tricks aimed at preventing him playing a decisive role in contributing to political prosecution the solution of this crisis. Each of us calls personally and energetically on theUnited Hundreds of internationalleaders have responded with out­ States of America, to be worthy of their great tradition as the rage at the U.S. Department of Justice's new, politically "temple of liberty" and exercise proper justice. The errant, motivated attempt to destroy the person and influence of politically motivated indictment of LaRouche has to be Lyndon LaRouche, this time in federal court in Alexandria, dropped immediately. Virginia. They have signed the fo llowing "Declaration of Honor fo r Lyndon LaRouche," which is expected to appear Prof. Dr. Norbert Brainin as an advertisement in a number of U.S. and European news­ Prof. Brainin was fo r many years the first violinistof the papers, and which has been made available to EIR. Afew of Amadeus Quartet, in Great Britain. these individuals have gone fu rther, issuing personal state­ I know Lyndon LaRouche to be a man of honor, who ments, either in writing or on television, to express their would never do anything illegal. This would suggest that the thanks fo r LaRouche's contributions in fields ranging fr om latest indictment of LaRouche is a mistake which would sort political economy to music, and their outrage to U.S. Attor­ itself out eventually, or is one of the most horrible pieces of ney General Richard Thornburgh. Excerptsfrom some of the political machination, that the world has ever seen, bearing most notable statements appear below. in mind the timing just before the American presidential election. I therefore urge you to drop this indictment imme­ Declaration of Honor for Lyndon LaRouche diately. Again, an unheard of, insane legal action against the independent American presidential candidate LynElon La­ Piero Cappuccilli Rouche has been put into motion by the American justice Opera singer,fromItaly . system, after legal proceedings in Boston , which had been To describe Lyndon LaRouche, I can say that he is a pursued with enormous efforts, fell fiat in the middle of this courageous man, who has made many initiatives. He is a year. This renewed witchhunt, which is demonstrated to be trustworthy man, who has done much for opera, paJ1icularly conducted by Dukakis's crowd in the U.S. Department of in his supportfor Verdi's standard tuning-pitch, A-432, which Justice, comes at the high point of the American election is the key to safeguarding voices in the future . In fact, with campaign and amidst the most dangerous convergence of the present high tuning, singers face serious difficulties, and crises since World War II. it's very important to return to Verdi's "A." Verdi was right, We know Lyndon LaRouche as a man of great personal and Mr. LaRouche, with his initiative, has also understood integrity, who, without any personal ambition and without how important it is to go back to singing half a step lower. seeking any personal advantage, has staked all his efforts on Mr. LaRouche has a broad-ranging mind, which extends the realization of a more human world. He might be charac­ into all fields of knowledge. And I must say that LaRouche terized as "controversial" only because his outstanding ana­ is a person who knows what he's doing. I wish there .were lytical mind-contrary to the currently reigning outlook­ more people like him. decades ago anticipated the coming crises and strategic prob­ lems, and proposed solutions to them. The spectrum ranges Vincenzo Carollo from hisfi ght against organized drug trafficking, his program Former Italian senator and fo rmer president of Italy's to defeat AIDS, his solution to the world food crisis, his Sicilian Region; currently president of the trade agency It­ resistance against the Russian threat, up to his supportfor the altrade.

32 Feature EIR November 18, 1988 In Lyndon LaRouche, I have appreciated the sincerity exposed his ideas. His analysis, first of all on defense prob­ with which he has always demonstrated that wealth can not lems, which are close to my preoccupation, was turned to­ be conceived as a means to exploit the weak, but as a force ward the future. His support in favor of the sm strategic for helping the needy. The more good one does, the more defense istruly shared by myself and co-thinkers in France. one becomes the bearer of true wealth: social wealth. This .is Thus, it is our strong hope that the course of SDI not be certainly a principle of Christianmorality , but also of politi­ changed, for it should not be negotiated. Furthermore, Mr. cal humanism. LaRouche has shown a rare patience on the plague much akin This is the reason for Lyndon LaRouche's battles on to war, the threat that AIDS means for all mankind. Generous behalf of the poor countries of the Third World and against ideas to come to the aid of countries of the Third World, a the International Monetary Fund's bureaucratic bankers' Marshall Plan for Africa, were ideas he presented to me as conception, which is neither human nor solidarist. ...Bu t an initiator. how can a great power maintain its greatness on the basis of The great causes, the struggle for freedom against tyran­ the perpetual poverty of the states of the Third World? ny, the fight fora peace through strength, the commitment to Christian solidarism does not admit this on the moral aid nations and peoples facing economic crisis, are the causes level, but history itself teaches us that a nation grows and of our time-the life of every day. Next year, we will cele­ becomes strongerto the degree in which it succeeds in trans­ brate in France the bicentennial of the French Revolution and forming the poor states which ask for charity, into states the Universal Declarations of the Rights of Man (and wom­ which are capable of producing-however gradually­ en). I, who fought so long to re-establish freedom and de­ wealth, labor, and exchange of goods in the context of inter­ mocracy in my country, believe strongly that Mr. Lyndon national relations. LaRouche's contribution to democratic debate is needed by This is also affirmedby Lyndon LaRouche, and this mor­ everyone today, and by each one of us. ally attracts me, too, because for my entire life, I have tried to help people, not in order to exploit and economically Rosemarie Love market their consensus, but to transform the duties I dis­ Commissioner of Cook County(Chicago), illinois. charged as President of the Sicilian region and as Senator of It is unfair that with the economic problems of this coun­ the Italian Republic into a service of real social solidarity; try , here we have an American economist who has not been but it should be very clear that this sociology is not Marxist allowed to enjoy the fruits of the First Amendment of the socialism, whose essential goal is not the good ofthe people, U.S. Constitution. The contradiction of this denial and the but an elitist governmentover the people. present administration's waving the American flag is strik­ On the contrary, the power of those who govern must not ing. What is there to fear in having an American economist, be more important than man, his freedom, and his develop­ capable and willing to present and implement the necessary ment, but ought to be a service for man, for society, and for solutions to our nation's economic problems? When America the people. denies what has been denied to Mr. LaRouche, the very forum to exchange ideas, which we, in America, consider Mme. Marie-Madeleine Fourcade sacred, is violated. Head of the NationaL Resistance Intelligence Network in Our government gives Gorbachov more opportunities to France, 1940-45; fo rmer member of the European Parlia­ enjoy the First Amendment, than one of its own sons, Lyndon ment. LaRouche. It's absurd to read in the national papers and view Free elections are unique moments for the debate of ideas on the national news the excitement about how great the in our democracies. In this regard, the United States of Amer­ Russians are for freeing a couple of whales under ice in ica, ally, twice liberator of France, a friend of France I love Alaska, when we as a world, have very serious problems. I dearly, is a symbol, a hopefor liberty for all peoples. Without am worried sick that winter is coming and the homeless are interfering in internal American political life, I would like to still homeless across this nation. The hungry are still hungry! emphasize the importance in my mind of the contribution I therefore call upon the unjust powers causing such pain made by Mr. Lyndon LaRouche on vital questions of world and agony, not only to Mr. LaRouche but the world as a politics. whole, to return to the principles of this great nation, which I met him fiveyears ago at a conference in Paris, in which are based on the freedom of speech and the freedom to ex­ I was invited to explain the dark days when tyranny took over change ideas! Germany and Europe when Hitler seized power in 1933. We of the French Resistance fought the rise of Nazism and total­ Eliane Magnan itarianism from its inception until the defeat of the Third VioLonceLList, from France,fo under of the Lebanon String Reich in 1945 . Quartet, and generaL secretaryof the Commission To Inves­ Since that 1983 conference, I have had the opportunity to tigate Human Rights VioLations. meet Mr. LaRouche several times, in the course of which he The Commission to Investigate Human Rights Violations

EIR November 18, 1988 Feature 33 Vincenzo Carollo Eliane Magnan Gen. Paul-Albert Scherer (ret.) Marie-Madeleine Fourcade

wishes to thank those persons, from America and around the dent of the Commission to Investigate Human Rights VioLa­ world, who have expressed their concernthat justice be done tions. in the pending case of Lyndon LaRouche in Alexandria, Very shocked and surprised at the news of your new Virginia. We believe this response, from numerous and high­ indictment, I am convinced that you are the victim of a pure ranking individuals, is the result of the fact, as we found in political campaign, without any real legal justification. hearings held on this matter last year, that Mr. LaRouche The content of this message can be shown to whomever represents for many nations, hope for freedom, justice, and you will judge necessary . With all my very best wishes to the development of civilization. architect of the SDI. In 1986 and 1987, the Commission conducted a thorough investigation of the LaRouche affair. We found overwhelm­ Amelia Robinson ing evidence that elements in the Justice Department associ­ u.s. civil rights Leader and co-founder of the NationaL ated with William Weld (and now associated with the cam­ Democratic Party. Tuskegee, ALabama. paign of Michael Dukakis), were conducting a "KGB-style Having heard of the new round of indictments against our witchhunt," at taxpayers' expense, against Mr. LaRouche great Lyndon LaRouche, I can onl y wonder at the treacherous and his associates. Our findings were corroborated by the minds of these people above suspicion, who act with impun­ . jury in Boston, which heard the case U.S. vs . LaRouche, et ity against the rights of the many guaranteed by God's laws. aL. earlier this year. That jury reported to the news media, Upon hearing of these atrocities against Lyndon LaRouche, that, had a mistrial not been declared, they would have voted I am reminded of my mother, who was a fighter fo( justice for acquittal for all defendants on all counts, and had found all of her life, such that from the time I became aware of that real evidence of governmentmis conduct in the case. idea called democracy, I got on the side of justice . My mother Now, in what can only be called a most outrageous case often told those who sought to stop her from fighting for of deja vu , the U.S. Justice Department has presented vir­ justice, "I will fight with all that I've got." tua
ly the same case it just lost in Boston, in a federal court That determination she had to fight is what guided her in Alexandria. Such bold disregard for fundamental princi­ life. For this reason, among many, I feel so good about ples of justice must lead even the most impartial observer to Lyndon LaRouche. He is not thinking about party politics, conclude that the government has an ulterior motive in its whether it be Democratic Party or Republican, but instead unrelenting prosecution of LaRouche. his mind is fixed on justice. As a Commission, our only power is moral suasion. We LaRouche knows that at this point in time, the problems therefore call on concerned individuals around the world to that all of humanity is facing are about people. Without investigate this case for yourselves, and then to act, quickly, people we have no political parties. to ensure that justice is done. Our American politicians and candidates are all fighting The Commission stands ready to act on behalf of human over petty matters in the exact same manner that we.as chil­ rights in this case, so that justice' be preserved in this nation, dren fought in child's play, through the petty environment which, more than any other on earth, represents freedom of � which is now dominating policy discussions. Without La­ thoug�t for the rest of the world. ' Rouche, there is no room to talk about valuable solutions to the miseries that we are all facing. Therefore, I feel that Gen� Jean-Gabriel Revault d' Allonnes (ret.) throughout this decade, I know of no one who is as much From France. a Compagnon de La Liberation and presi- concerned about uplifting humanity as LaRouche and his

34 Feature EIR November 18, 1988 nut-case leading a fool's crusade against the peaceful Soviet Union, and finally as a troublemaker, a parasite, and a tax evader. How easy it is, to infiltrate an organization; in order then to defame it, and, via agents of influence, to .play back falsified accusations, incriminating documents, and plausi­ ble, fear-arousing rumors to the police, the judicial authori­ ties, and the government apparatus. In Moscow's tactical lexicon this is called murder through disinformation, and the deadly sapping of the victim's energy. We see this happen very often in Germany, and then documents are seized, of­ fices searched, and those under attack are brought to trial. Something is bound to stick-if we are actually dealing with real criminals. John Seale, M.D. Dr. Norbert Brainin If the accusations leveled against LaRouche were true, we would have to seriously warn people about him. But­ and this I know-there is no truth to them. Despite this, a lovely wjfe Helga, who is his right arm. I cannot help but to part of the political elite is attempting to shut him up, just as follow justice. God bless Lyndon LaRouche. anyone who causes them discomfort is easily spat out, with­ out them having ever actually tested the veracity of the slan­ Gen. Paul-Albert Scherer (ret.) ders . I say that's unfortunate. ..Former chief of the Militiirischer Abschirmsdienst (MAD), Why am I standing up for LaRouche? Because I have Military Counterintelligence Service, West Germany. come to know him personally as a far-seeing, highly com­ For more than half of my life's 70 years , I have been mitted person of unimpeachable integrity, as a policy-maker, dealing' professionally with problems of strategy, psycholo­ and a modest, honest, and deeply religious human being, gy, leadership, and tactics of the psychological and low­ whose overriding concern is the future of Western civiliza­ intensity warfare which Moscow has been waging on us tion. We in Europe depend upon our alliance with America. during a time of ostensible peace, most recently in my capac­ And Lyndon LaRouche would never let us down. ity as a general and as chief of military counterintelligence in I decided to become personally acquainted with La­ the free part of Germany. Rouche after I had observed how he had built up his private Over the course of my inspection trips and lectures in intelligence service, and had ascertained the politically sound America and in Europe, I have been increasingly struck by conception behind it. He is a man of integrity, a man of the threat posed by the clouding of perceptions, partial blind­ freedom, highly cultured, an economic scientist with an al­ ness, and even total blindness of many people in the West as most unparalleled political acumen. a consequence of deliberate Soviet poisoning of Western I should also not forget to state, that I am not a member information sources. Anyone who believes that this has of any LaRouche organization, and am therefore making my stopped under Gorbachov, and that the Soviet Union is no judgments completely independently. To sum up: My great longer a police state, a slave-state, has lost all sense of reality. concern is that this inhuman Soviet strategy of psychological The Soviets' diabolical poisoning of the wells, and their stupefaction not succeed. Otherwise, we will not be saved. cynical strategy of deception, includes actions to muzzle, We must not be a collapsing West, as the Soviets would have slander, criminalize, and eliminate important vanguard us be. thinkers, politicians, economists, and journalists in the West-those idealists who courageously speak out against John Seale, M.D. the communist deception campaign, without regard to their Fellow, Royal Societyof Medicine , Great Britain. own personal fate . Lyndon LaRouche is one of these top­ It is disconcerting to see what appears to be a highly ranking persons, as many experts have stated. In the global unusual variety of legal harassment against Mr. LaRouche , context, the Soviets have classifiedhim as their deadly enemy the only presidential candidate who has raised the issue of number one on the KGB 's list of Americans alive today. the AIDS crisis in the election campaign. Mr. LaRouche has LaRouche emerged as a dire �hreat when he developed made great efforts to inform himself and the public of the the idea of the sm to defend the West, a concept which was scientific issues of AIDS-which is perhaps rather more than adopted by President Reagan in 1983-a dangerous distinc­ Dukakis and Bush seem to have done. tion for Mr. LaRouche . Ever since then, a campaign of char­ The unchecked spread of the AIDS virus in your popu­ acter assassination has been running against him at full throt­ lation is not only a threat to the United States, it is a threat to tle. First he is slandered as a Trotskyist, and then as an arch­ the security of the entire Western world. It really is about fascist, as a neo-Nazi, a crypto-anti-Semite and racist, as a time the politicians faced up to reality.

EIR November 18, 1988 Feature 35 �TIillBooks

In Anthony Blunt, we trust

by Lyndon H. LaRouche, Jr.

of the enormous damage done by Blunt than has been previ­ ously available in the public domain. Mask of Treachery The largest flawin Costello's account is summed up in a by John Costello William Morrow & Company. Inc .. New York. single word, "Trust," as that term was employed in the vo­ 1988 cabulary of Soviet Cheka chief Feliks Dzerzhinsky. Perhaps 765 pages with notes. documentation. and the author would acknowledge the importance of iliatfeature index. clothbound $22.95. of the case; we concede that mentioning that connection places the incautious author in the target-area of extraordi­ " nary unpleasantness. For those who prefer to avoid such To the degree the relevant portions of our official and unof­ risks, the legend which places Philby and Blunt among the ficial establishment have moved toward what is commonly biggest Soviet fish inside British intelligence may not be identifiedas pragmatic "pluralism," and therefore away from truthful, but it is a tale whose telling brings one ntany cozy the principles of natural law and reason upon which the United evenings this side of one's tomb. States was founded, the relevant agencies of the U.S., like To the degree we might obtain profit while subscribing to Britain, have become incapacitated in respect to fulfillment the myth of Philby's and Blunt's relative position as the "big of their national security functions. Soviet fish reeled in," the author's work is of exemplary This is the most general cause of serious breakdowns in usefulness. No review could do justice to the full scope of U.S. national-security's counterintelligence functions. There the material covered in that text and its appended materials; is a second, somewhat related difficulty, more specific in better the reviewer select one or more of the topics within the nature, but of approximately comparable importance. The text. celebrated cases of Britain's Anthony Blunt, H.A.R. "Kim" So, we shall view several selections among the book's Philby, Donald Maclean, and Anthony Burgess illustrate points. The center of our attention shall be matters empha­ both classes of problems. sized in Chapter 12 (pp. 219-229). Our interest shall oe the On this account, John Costello's new book, Mask of first of the two topics identified at the outset of this review. Treachery. is to be welcomed. Our subject is the fact that a certain social type , usefully Author-researcher Costello has not set the story quite termed "the anti-authoritarian personality," is always inher­ right, b�t the book covers and enlarges the established terrain ently a national-security risk, as the comparison of Anthony of the Blunt story, and affords the reader a better appreciation Blunt with Bertrand Russell illustrates the type in view.

36 International EIR November 18, 1988 The issue which Costello attacks in this chapter, is the As Bertrand Russell put the point in 1951: hoax Blunt perpetratedin his public utterances of 1979, after ...when I first became politically conscious Glad­ he had been exposedpubl icly as a fonnerSoviet spy. Costello stone and Disraeli still confronted each other amid reports: Victorian solidities, the British Empire seemed eter­ At his carefully staged press conference in 1979, nal , a threat to British naval supremacy was unthink­ Blunt appeared before the television cameras in a rum­ able, the country was aristocratic, rich and growing pled tweed jacket. On the only occasion he was called richer. ...For an old man, with such a background, to account for his treachery before the bar of British it is difficult to feel at home in a world of . . . Amer­ public opinion, the silver-haired old English gentle­ ican supremacy. men offered the nation an offhand apology for what Like the leading Gennan recruits to the Thule Society'S he admitted was his "appalling mistake." Nazi Party , those from the privileged strata of young edu­ . . . His invocation of the Official Secrets Act cated Britons who drifted variously into fascist or socialist constraints was his excuse for being conveniently movements, were morally pathologues, wandering in a mil­ vague, particularly regarding the events that had ov­ ieu of eccentric sexual fads, and lurid occultisms varying ertaken him over forty years earlier when he had short­ from cults of the Bogomil sort to the outright Satan-worship sightedly succumbed to appeals ofhis best friend: "to offered by Crowley and his anthroposophs. On this account, try to help anti-Fascism which was obviously the issue being thus already hardened traitors to Western European of the moment." civilization, and resentful to the point of envious hatred . . . Andrew Boyle told reporters afterward . . . against the great English-speaking sovereign republic across that [his book The Fourth Man] ...had finally forced the Atlantic, it became a relatively small step further to the [British] governmentto disclose Blunt's treachery. become also traitors to Britain. Boyle was one of the few not taken in by Blunt's claim It was not Marxism as such which attracted those who that he had not become a Marxist until the mid-thirties. fancied themselves in league with Moscow; it was Russian A few pages later, Costello's comes to this point again: Bolshevism. From the beginning of the Soviet NEP period, when Dzerzhinsky' s Trust arrangements were rampant in [Goronwy] Rees graduated from Oxford in 1930, Moscow's relations with powerful financier interests of the before the major political upheavals of the decade. West, through the 1927-29 overthrow of the Comintern His communism and Blunt's therefore had nothing to oppositionist factions, the Trust-linked Western financiers' do with saving democracy from Fascism. The motives influence made Moscow almost as acceptable as a "peace­ that impelled Rees toward Marxist philosophy, as in loving partner" as has been proposed increasingly by most Blunt's case, appear to have had more in common Western industrialized nations' governments and liberal es­ with intellectual snobbery than with direct political tablishments over the course of our own recent four years . action. Both discovered in Marxism the attraction of The key to the reactions among the relevant strata of a secret shrine of individual rebellion. Their inspira­ privileged young Britons, as was the case with the rise of tion appears to have been more opportunistic-the communist and fascist parties on the continent, is not the need to ensure their membership among the intellec­ inherent attractive power of communist or fascist doctrines tual elite by becomingthe clandestine outriders of the as such. The key is the fact, that under conditions of deep­ Communist revolution. ening cultural pessimism, during and following World War Costello's arraying of evidence to such effect is most I, the influence of the kind of "New Age," or "Age of persuasive. It detracts nothing from his work, that on this Aquarius," dogmas associated with the like of Fyodor Dos­ point he is not ploughing virgin wasteland. The track of the toevsky, Maxim Gorky , Friedrich Nietzsche, and Aleister British establishment young darlings turned Soviet spies Crowley, spread extensively among these strata. dates to the mid-1920s, to the rising young dissolutes at­ What made Bolshevism and fascism attractive among tracted to the circles of the older generation of high-flown these depraved types was not any yearningfor an instrument Fabians of the likes of Bertrand Russell, Aleister Crowley, of justice, but rather the persuasion that Bolshevism and and H.G. Wells. fascism as the Romulus and Remus of the "dawning of the This new generation of upper- and middle-class aca­ Age of Aquarius," offered one the means to leave the camp demic intellectuals was deeply imbued with that downward of Christianity for the camp of that Lucifer-Dionysos-Satan spiralling cultural pessimism which gripped a dismayed a they were certain must soon triumph. British youth whose friends and older brothers Field Marshal The fascist and Bolshevist recruits of this sort, did not Haig had draped as corpses upon the barbed wire of the become evil because they had become fascists or Bolsh­ World War I battlefields. evists; rather, they became fascists or Bolshevists because

EIR November 18, 1988 International 37 they had already become evil. sonality" dogma is step-brother to Karl Rahner's "liberation So, Costello paints the Anthony Blunt entering Oxford's theology," and kindred "charismatic" cult-movements in the New College in 1928. name of religion. We employ the term "evil" in a very rigorous, specific Politically, this Frankfurt School project was conceived sense. We do not mean a person who has committed a great as a means to destroy those features of the Western European amount of sin. We mean the distinction between the person cultural matrix which were the principal obstacles to the who commits a wicked act, such as robbery , murder, or introduction of Bolshevism, or something akin to it, among rape , as an ill-chosen means to gain those objects which the nations of the West. Hence, on this account, the advocacy may or may not be wicked in themselves, and the person of the "authoritarian personality" dogma is a treasonous in­ who seeks ends which serve as a pretext for doing evil. We tentper se. mean, in the latter case, the person whose keenest pleasure In practice, that dogma has been treasonous. By the latter is in the sense of doing evil for evil's sake. We include in part of the 1950s, the Anglo-American occupying authori­ the class of "evil," that person who, like a parricide, delights ties' fostering of this "authoritarian personality" dogma .as in destroying the society which has nurtured him, not with part of the "democratic reeducation" of Germans had accu­ any clear benefit in view except the pleasure of destroying mulated effects to the pointthat Frankfurt School influences for the sake of the pleasure of destroying. of Horkheimer and Adorno were employed directly to trans­ Above, we promised not to veer into this other topic, form the young organization the Social-Democratic Party, but we must make a passing reference to it here . We do not SDS, directly into a New Left pioneering project. With aid accept the proposition, that Anthony Blunt and "Kim" Philby of elements of the Socialist Internationalengaged in fostering became traitors in the Soviet service solely because of the this transformationof Germany's SDS into a New Left move­ complexities of their personal motivations. They could not ment, the U.S. arms of the Socialist International, including have functioned in Soviet service as they did, without high­ the League for Industrial Democracy (LID) and its student level protection from authorities much more powerful than branch, appropriately acronymed SLID, the New Left dis­ themselves. The paradigm for this sort of higher authority ease was spread intothe United States, and the outgrowth of is "Trust," those powerful interests which yearn for the this was named, quite shamelessly, SDS. establishment of the kind of world-federalism which a global The dogma of the New Leftwas purely and simply Ador­ power-sharing agreement with Moscow promises to bring no's "authoritarian personality" dogma. Any personality who about, and see that sort of agreement as the lever by means was self-governed by reason, and associated belief in some of which to rid this planet of the institutions of the sovereign natural law more efficient than caprices of mere popular nation-state, and of anti-aristocratic institutions of constit­ opinion, was classed as such an "authoritarian personality." uency organization under terms of representative self-gov­ Thus, the dogma of the "authoritarian person.ality" was ernment. aimed directly at the goal its pro-Bolshevist fathers had in­ Yet, that usually avoided feature of the Philby and Blunt tended for it: the virtual outlawing of the personality-type cases taken into account, the fact remains that it was the which is the characteristic, moral , patriotic personality of satanic tendencies of their flawed personal character which Western European Judeo-Christian civilization . This d�gma qualified them as suitable instruments for the rolethey played. of the "authoritarian personality," was and is Bolshevik pro­ With such proviso, we may limit our attention here to the paganda transformed into form of warfare , cultural warfare propositions posed by Costello. against the "cultural matrix" of Western European civiliza- tion. . Blunt as a type The treason of Anthony Blunt and "Kim" Philby defines The portrait of Anthony Blunt is a picture of a type fairly them as the moral type of the "new man" which the dogma identified as "the anti-authoritarian personality." He is of the of the "authoritarian personality" is designed to bring into type admired by Hannah Arendt, by Lukacs, Horkheimer, beingas the characteristic, or at least dominant social typeof and the evil Adorno, before Arendt's popularized rendering Western nations. of the Frankfurt School theses on "the authoritarian person­ As we emphasized at this outset of this report, the ques­ ality." This type is always a security-risk to any nation. tion posedby the Blunt and Philby cases is, how is it possible The dogma of "the authoritarian personality" has two that such inherently treasonous social types of "anti-authori­ overlapping origins. tarian personalities" are enabled not only to pass succe�sfully In philosophy, it is immediately a product of the influence the relevant national-security screenings, but slither into the of Husserl's implicitly satanic dogmas of phenomenology, highest places of national intelligence establishments? Again, blended,with the irrationalist existentialism of Martin Buber Costello's obsverations are useful. ' and his some-time Nazi-sympathizer co-thinkerS, Karl Jas­ pers andMartin Heidegger. By way of Heidegger's partici­ The "ivory tower" rebellion of Rees and the Ox­ pating parentage, the Frankfurt School's "authoritarian per- bridge intellectuals of his generation who became

38 International EIR November 18, 1988 Marxists flourished at the end of the twenties because population more generally, over no less than two centuries, of the "peculiar condition," as Rees called it, of the the proliferation of so many cultural perverts from among English intellectual establishment. "To be a Com­ the British intellectuals of the 1920s would not have been munist, with the declared intention of subverting and possible; even given the depressive circumstance� following destroying the fabric of the existing society, was to World War I. Rees's point, referenced by Costello, is ex­ occupy a respectable and respected position," Rees tremely important; it requires such amplification. -wrote. His contemporaries saw that "the difference The moral flaw in liberalism is axiomatic: It allows no between a communist and a liberal was merely one firm moral values, but only more or less arbitrary ones, in of those differences of opinion which arise between the included sense that a moral value upheld merely because the best of friends and which both find mutually stim­ it is customary does not represent an intelligible sort of ulating." ...The only issue was one of method. commitment. This axiomatic flaw in liberalism is the key to the way in which the dogma of the "authoritarian per­ Here lies the source of the functional disorientation shown sonality" functions in practice. by relevant security agencies. In the U.S.A., as in Britain, Adorno's and Arendt's dogma simply turns liberalism to the extent that the heritage of what is termed often "nine­ inside-out. Where liberalism says that an intelligible form teenth-century British philosophical radicalism" is deemed of moral certainties is an arbitrary choice, not a necessary an acceptable set of security values, the perceived difference one, Adorno et al. say that whoever insists on ordering their between a modem liberal and an active security risk is not own belief and practice according to intelligible sorts of a qualitative one, but essentially one of degree. Outwardly, moral principles is a bad person, to be put into the same the values openly expressed by an active security risk will classification of "extremist" as the Nazis. Of course, it is be consistent with the range of values expressed by a sig­ absurd to suggest that Adolf Hitler and his immediate circle nificant number of liberals who are not security risks. were advocates of natural law or a notion of reason based True, as we have stressed, the incidence of those from upon intelligible moral principles, but when did Adorno, et Oxbridge circles of the mid- 1920s or slightly later, who al. ever reject a thought merely because it was patently an turned up as openly or covertly Communists or fascists absurd one? during the 1930s and later, is a product of the Weltschmerz We may insist that the "authoritarian personality" dogma pervading that stratum, and of the spread of "New Age" is not merely a treasonous dogma, but an absurd one. Since cultishness during that period. the purpose of Adorno et aI., like Hitler's Nazis, is the However, the rootsof what Costello cites Rees as naming triumph of the absurdities of the irrational will over reason, "the 'peculiar condition' of the English intellectual estab­ to inform an Adorno that his argument is an absurd sort of lishment" of the 1920s is a state of affairs found widespread sophistry would merely convince him that it were the sort as early as the rise of Hell-Fire Club liberalism under Horace of dogma which his adult life was dedicated to promoting. Walpole, which was, in turn, an echo of the exotic ideas Like Hitler, Adorno and his leftish ilk are dedicated to the and practices among the circles of Sir Francis Bacon and triumph of the absurd over sanity. his secretary Thomas Hobbes. David Hume's popularization "All is permitted," the Nazis proclaimed, echoing as a writer, and position in the Edinburgh branch of the Nietzsche. Not only does Adorno insist, also, that "All is British Secret Intelligence Service was a reflection of the permitted"; Adorno insists that anyone who resists that stan­ heyday of Walpole liberalism. The more openly radical tum dard of conduct as a potential tyrant who must destroyed. in Hume's work during the period Adam Smith became his British liberalism is a British gentleman diddling the acolyte, and, later Lord Shelbourne's agent, reflects the downstairs maid for his own pleasure. All such is allowed, continuation of this sort of trend of rise of empiricist lib­ on condition that customary appearances are maintained. eralism. Shelboume's agent JeremyBentham , and the Brit­ The devotee of the "authoritarian personality" dogma, is a ish East India Company's Thomas Malthus, David Ricardo , homosexual gentleman, who shudders in horror at the thought James Mill, and Bertrand Russell's un-godfather, John Stuart of the touch of a woman's body, who rapes his ten-year­ Mill, represent the progress of progressive degeneration of old niece for no motive but the perverse pleasure of doing the British intellectual establishment's radical forms of lib­ an evil thing. The latter gentleman will damn anyone who eralism through the emergence of Oxford's John Ruskin, interferes with his act, as oppressing the perpetrator's "own and so on. Russell, Crowley, an,d H.G. Wells during the free will." 1920s typify the cultural bridge linking the generation in­ Such an "anti-authoritarian personality" would betray fluenced directly by J.S. Mill and Ruskin to the Fabianized Britain to Moscow for no deeper reason than enjoying the strata of the British intellectual establishment of the 1920s pleasure of doing an evil thing, and perhaps because, also, and 1930s. like Bertraitd Russell, he enjoys betraying Britain to Moscow Had not there been this process of successive steps of as an act against the hated United States. conditioning of the British intellectual establishment, and So, reading Martin Buber, one thinks that the chief cause

EIR November 18, 1988 International 39 of his resentment of Hitler' s anti-Semitism, is that this denied him the company of his co-thinkers Jaspars and Heidegger in boosting the Nazi cause, or even of wearing the swastika brassard himself. Such evil as Buber's requiresplain speech, even if speaking plainly is very unpleasant.

Rules for national security The case of the "anti-authoritarian personality" begs comparison with the lesson of Communist-directed guerrilla warfare . Once the armedinsurgents reach the level of having Deadly poker, or one-tenth the strength of the threatened nation's regular armed forces, and there are also no fewer than 70 to 100political we bet your life supporters of the guerrilla cause for each armed insurgent, the existence of the threatened nation is in imminent jeop­ by John Grauerholz, M.D. ardy. A people which is morally conupted-or, the same thing, culturally degraded-has no national security protection against Communist insurgency. By and large, national-security screening of prospective Doctors of Deceit and theAIDS Epidemic : and actual occupants of highly sensitive positions, has the A View From the Inside function of preventing security risks or emotionally unstable by Gus G. Sermos GGS Publishing. Jackson. Mississippi. 1988 persons from infesting a small minority of the total number 53 pages paperbound. $5.95. of adult work-places in the society at large. As long as the majority accepts the use of certain moral values and related standards as the yardsticks for security screening, national Ifyou wereto suddenly realize that you had become involved security is feasible. in a massive plot which would result in the death of millions What happens, then, if a very large minority of the intel­ of people, and that this plot was being carried out by those to lectual establishment adopts a form of liberalism which bor­ whom the potential victims had entrusted their lives, what ders on susceptibility to support of a dogma such as Adorno's would you do? Speak up or shut up? Lie low, or go with the and Arendt's "authoritarian personality" deviltry?What if, a flow? This book is the product of a man caught in such a majority, or a very large minority of that establishment find situation, or as he succinctly states it, "I am a witnc?ss;this is their differences with the converts to Adorno's cult to be my testimony. " "merely one of thosedifferences of opinion which ariseamong Gus G. Sermos was a Public Health Adviser and AIDS the best of friends and which both find mutually stimulating"? researcherat the Centers for Disease Control, who, according To the degree that nation's intellectual establishment is able to The Miami Herald. "labored for 2V2 years with scant as­ to impose its inclinations on the policies of government, that sistance and considerable resistance from the state to docu­ nation has no effective national security. ment the burgeoning epidemic of acquired immune-deficien­ Putting aside the issue of powerful "Trust" -like interests cy syndrome (AIDS) in Florida." For his troubles he was in Britain and elsewhere, no one who has studied the pattern fired and stripped of �nefits to which he was entitled for no of British intellectuals turned Soviet spies overlooks the fact legitimate reason. that many covered up for these spies because the traitors were For all that has happened to him and his family as a protected by the prevailing instinct of the intellectual estab­ consequence of his refusal to compromise his responsibilities lishment during the relevant period of time. in accordance with the official "line," this book is not the A nation which is not dominated by social strata commit­ "complaint of a disgruntled former employee." Rather, using ted to clear and intelligible sorts of cultural and related moral the same keen intelligence and observational skills which he values, is already as good as doomed to defeat by the first brought to bear on documenting and reporting on AIDS and credible adversary who resorts to the methods of cultural other diseases, Gus Sermos describes the explosive evolution warfare plotted against Western civilization by the likes of of AIDS in Florida and the criminally negligent respol)se of Adornoand Arendt. So, the United States is being destroyed state and federal health authorities to the epidemic. from the inside today . � As any good expert witness, he educates his audience The ,remedy for our resulting condition ought to be ob­ Gury)so that they understand the basis on which he arrives vious. As one completes the reading of Costello's book, a at his opinions and the thought processes underlying his con­ sense of the urgency of effecting such a change overwhelms clusions. In fact, the book is one of the most accessible one. expositions of the basic principles of public health and epi-

40 International EIR November 18, 1988 demiology which I have read. Mr. Sermos is one of those Now we are all unconsenting guinea pigs in a study extremely rare persons who possesses solid knowledge of his that encompasses a scale which dwarfs the Tus/

EIR November 18, 1988 International 41 These are the elite corps which would be the spearhead and backbone of a Soviet invasion of WesternEurope. These are not sp etsnaz troops; rather, these are three different types of troops that are as important in the new Soviet order of battle as the spetsnaz. The most highly trained are the airborne troops (VDV), followed by the air-assault troops (DShB), The new Soviet and the reconnaissance troops (razvedchiki). Rough Ameri­ can equivalents would be: troops of the 82nd Airborne Divi­ order of battle sion (VDV); troops ofthe 10 1st Air Assault Division (DShB); and Army Rangers, Army Green Berets, or Marine LRPs by Anthony K. Wikrent (razvedchiki) . In the Soviet literature , these three types of forces are generally referred to as "landing troops ," desantniki. The desantniki have bornethe brunt of all combat in Afghanistan. When the Soviets conducted their large "blocking" offen­ Inside the Soviet Army in Mghanistan sives, the procedure followed was to have the motorized rifle by Alexander Alexiev units that were assigned to occupation duty surround a pre­ The Rand Corporation, Santa Monica, Calif. , determined area, and then insert desantniki to conduct the May 1988 actual combat. Alexiev writes that the desantniki "are the 68 pages, paperbound, $7.50. units in which most of the Soviets' tactical adaptation, oper­ ational innovation, and experimentation have been exhibited. Read between the lines, this report offers further indications They have been the most successful Soviet units operation­ that the Stavka (Soviet High Command) is rapidly shiftingits ally." In one operation, recounted by an interviewee, two military forces to a new order of battle that emphasizes the helicopters landed two dozen desantniki near a remote house; role of small units of highly trained and highly motivated they killed all 30 mujahideen inside in less than 10 minutes. elite special combat troops. Evidence is also presented which In another operation, about 90 VDV troops "climbed straight demonstrates that "Pavlov is a Russian soldier's weak flank" up the mountain" to attack the rear of a very secure mujahi­ (See book review by that title in EIR , Sept. 4, 1987, Vol. 14, deen position. An eyewitness said the fighting lasted two No. 35). entire days, and he concluded, "Before that I had thought The report was undertaken by the U.S. Army's Arroyo that the Soviet soldiers are not worth anything, but I �ust say Center, which is housed in and operated by the Rand Cor­ that I had never seen anything like that. We had good food poration. Alexiev avers that it is "the first analytical exami­ there and I was in good shape, but I would not have been able nation of the Soviet armed forces under conditions of war in to climb that mountain. It was simply impossible for me. the post-World War II period that incorporates a substantial These were really tough guys." body of first-hand information." Though we would normally As can be expected, the desantniki place a premium on avoid anything that incorporates the "cost-benefit systems physical fitness. In the VDV, "many of the recruits have analysis" approach that Rand has pioneered, and which has already achieved a degree of mastery in sports such as box­ wreaked horrifying damage on America's war-fighting po­ ing, wrestling, and the .martial arts , or have acquired param­ tentials and capabilities, the present report is not of that ilitary skills in sky-diving or marksmanship in DOSAAF genre. The "first-hand information" referred to has been courses prior to being drafted." Their training includes gleaned from interviews with 35 former Soviet servicemen marches of over 15 kilometers a day, swimming underwater who actually served in Afghanistan, as well as mujahideen across a river whose surface has been set ablaze, mountain leaders. climbing, and free use of live ammunition. Alexiev points out that the Soviet forces in Afghanistan One of the major qualifications for selection into the can be divided, by function, into two distinct groups. First, desantniki is political reliability. Not surprisingly, very few about 80% of the total Soviet forces in the country are "oc­ recruits are of other than Russian ethnic origin. And it is cupation forces," which perform support duties, such as striking that of the 35 ex-servicemen interviewed, only.two transportation, or provide security, i :e., stand guard at a fixed were desantniki, and none were VDV. It must be pointed out post. These forces rarely participate in the large sweeps, that the VDV accounts for half of the desantniki deployed in called "bl,ticking operations," that the Soviets have periodi­ Afghanistan-at least 10% of the total Soviet expeditionary cally conducted against the mujahideen. force. That there was not one VDV troop among the 35 Second, are the "counterinsurgency forces," which con­ interviewed, indicates an exceptionally high reliability and duct all Soviet-initiated combat operations in Afghanistan. esprit de corps in the VDV.

42 International EIR November 18, 1988 Airborne dominance commanding officer learned about the losses, even though, Looking at the new Soviet order of battle, the implica­ according to our interviewee, it was only a matter of time tions are chilling. The Soviets now field seven VDV divi­ before the resistance group would be liquidated. Such histor­ sions, as compared to the one airbornedivis ion fieldedby the ically atypical behavior would indicate that there are at least U.S. And while the 82nd Airborne is based at Fort Bragg in some political constraints, real or perceived, that affect the the United States, at least five of the VDV divisions are based Soviet army's operational decision-making in Afghanistan at with the Group of Soviet Forces in Germany, or are under present." the command of the WesternTVD . The significanceof the rapid rotation of these desantniki The key to understanding the new Soviet order of battle, forces throughMghan istan, should be abundantly clear. Since is to realize that the Stavka is not interested in achieving these forces are intended to be the spearhead of a Soviet Russian suzerainty over a WesternEurope reduced to smol­ assault on NATO, the Stavka has striven to have as large a dering ruins by prolonged combat. Hence, the first Soviet proportion of the total Soviet desantniki force experience objective is to nullify, to the greatest extent possible, the combat in Afghanistan. The widespread dissemination of this Westernwill to resist, and to induce within the West as great experience also ensures that the Soviet Category II and Cat­ a degree of, if not admiration, then at teast tolerance, for the egory III divisions would be fleshed out with a highly signif­ intense chauvinism of Great Russian messianic expansion­ icant proportion of combat veterans during a mobilization. ism. This, of course, brings into play the question of cultural Weaknesses warfare . The second Soviet objective must therefore be to Alexiev's reportalso makes clear that, despite the appar­ devise a means of blitzkrieg attack that minimizes, or, ide­ ent invincibility of Soviet forces, as thus far portrayed, they ally, eliminates, the potential for damaging the economic suffer from extremely debilitating weaknesses. Besides the infrastructure andcapability of Western Europe, which would well-known problem with ethnic conflict within the ranks, be needed to produce the tribute the Stavka intends be ren­ the non-commissioned ranks are beset with a major conflict dered to Imperial Muscovy afterthe war. between the "newcomers" and the startsiy, "oldtimers" who In the wake of the INF Treaty, with short-range U.S. have served more time in a unit, and therefore enjoy '.'infor­ nuclear weapons removed from Europe, the Soviets are re­ mally" enforced "rights" of seniority. Soldiers who arrive lying on their irregular forces in the Western "peace" and new in a unit, are subject to often sadistic and brutal "hazing" "green" movements to make it unthinkable for NATO to by the startsiy. Alexiev's respondents recounted many cases resort to its submarine-based and ICBM strategic nuclear of "newcomers" being beaten so severely that they required weapons in the event of conflict. With respect to Western hospitalization. In at least one case, a respondent attributed Europe, then, the question for the Kremlin is reduced to his defection to the extremely brutal hazing he was subjected training and deploying the type of special combat forces that to as a "newcomer." This particular problem may be more can surgically eliminate NATO's key leadership, facilities, debilitating to Soviet combat effectiveness than the factor of and capabiUties in the shortest possible amount of time. ethnic tension. Sp etsnaz, VDV, DShB, and razvedchiki, equipped with new Another major problem for the Soviet forces in Afghan­ magnetic effect weapons, would be ne plus ultra for this istan was a critically severe failure to maintain basic condi­ mission. tions of hygiene and sanitation. Alexiev's respondents re­ Under such conditions, the desantniki would be among ported numerous cases of epidemics sweeping the Soviet themost highly valued of Soviet military assets. This consid­ contingent in Afghanistan, with some units having a quarter, eration allows us to make sense of a particular pattern of or even a half, of their personnel stricken with diseases such Soviet behavior in Afghanistan which Alexiev notes, but as hepatitis. At times, diseases were so widespread in a unit, finds incomprehensible. In its use of desantniki, "the Soviet that the unit ceased sending ill soldiers to the hospital. command seems to have become especiallysensitive to loss­ es in the past two or three years. Several of our respondents," For further reading: Alexiev continues, "were aware of efforts to keep casualties Michael Liebig, "Airborne operations: spearhead of 'post­ to a minimum, even at the cost of operational constraints . A nuclear' warfare" EIR Vol. 15, No. 38, September 30, 1988. former DShB sergeant recalled that two blockingoperations F.A. von der Heydte, ModernIrregular Warfare in De­ in which he participated were called off because of excessive fe nse Policy and as Military Phenomenon. with a foreword casualties, despite the fact that they were progressing well. by Lyndon H. LaRouche, Jr. , 1986. In one case, the Soviets had surrounded a 500-man mujahi­ Global Sh;owdown Escalates. Second Edition, 1988. An deen force in the Paghman highlands, when a DShB unit EIR Special Report. inserted in the area ran into an ambush and lost about 50 of Electromagnetic-Effe cts Weapons. 1988. An EIR Sp ecial its men. The operation was called off immediately after the Report.

EIR November 18, 1988 International 43 Gorbachov admits food crisis is desperate

by Luba George

The Soviet food crisis will form the agenda of the next Com­ underscored the life-and-death urgency of the food crisis. munist Party Central Committee Plenum, which will be held Senior party ideologue-economist Otto Latsis, in his re­ before the end of November. The urgency ofthis crisis allows port to the meeting, presented a bleak picture of the overall no delay until December or January. Moscow's announce­ food situation adding, "Everyday life has not improved. If ment of an upcoming CC plenum on the food and agricultural anything, it has deteriorated." policy question was made in a typically indirect manner, by Food shortages have worsened considerably in recent a member of the Central Committee, Vyacheslav Kochemas­ weeks. In the Ukraine, eyewitnesses report that such basic sov, the Soviet ambassador to East Germany, when he was foodstuffs as meat, sugar, and dairy products are virtually interviewed by the East German state radio station on Oct. unavailable. The severe food shortages in the republic were 25. the main subject of discussion at the Oct. 10 CC plenum in In the text of that interview, published the next day by the Ukraine, where party boss V.V. Shcherbitsky stressed the East German party newspaper, Neues Deutschland, Ko­ that "production and expansion of food supplies" was the chemassov stated: "root of the problem . . . upon whose solution depends the "The tasks of agricultural policy in the present phase were course and future of the perestroika." clearlyfor mulated in the speech by Mikhail Gorbachov at the In the Ural industrialcity of Sverdlovsk, meat consump­ recent meeting with agricultural specialists at the Central tion stands at 4 kilograms per personper year, and in Central Committee of the CPSU. That was a lively, interesting dis­ Asia at below 20 kilos. Throughout the country, including cussion with these people on the restructuring of the econom­ now in most districts of Moscow itself, shops are devoid of ic relationson the farms. This will be continued at the upcom­ meat, dairy products, sugar, and sweets. ing plenum of the party's Central Committee on questions of The language of Gorbachov's speech to those high-level agricultural policy." Central Committee functionaries was the most strident to date The growing Soviet food crisis is a potential detonator of on the food situation. He emphasized that the food crisis is World War III. If the Russians cannot intimidate the rest of "the most severe problem" facing the Soviet Union, and that the world into providing them with sufficient food on their "other tasks," no matter how important, must "if necessary, terms, they could strike out militarily to secure their food be put off," to focus on the food shortages, which "must be supply, perhaps even into WesternEurope . • tackled at whatever cost." The food crisis is already shaping the next storms to erupt 'Everyday life has deteriorated' within the Soviet leadership. Gorbachov himself admitted The "meeting at the Central Committee" that Kochemas­ that heads could roll, when he remarked that "without a sov referred to, held Nov. 2, certainly was "lively," and radical change in the attitudes" of the leadership entrusted

44 International EIR November 18, 1988 with the agricultural question, no solutions can be found. agreed on extended shipments of food products, including Gorbachov warnedthat the Soviet leadership is becoming canned meat and vegetables. "increasingly concerned" over the tendency to twist around In preparation for French President Fran�ois Mitterrand's agricultural policy decisions, "or even to ignore them." late-November visit to Moscow, the French and Soviet agri­ He was referring to the plan, now ratified by the Soviet culture ministers met. The French side emerged from the parliament, allowing private farmers to lease state land for meeting to report that shipments of food from France to the up to 50 years for food production. Under this scheme, where U.S.S.R. will continue to be met promptly. This means that farmers could sell the produce of the leased land, the state food shipments to the U.S.S.R. will take precedence over hopes to heavily increase food production, through the added European Community needs. income incentive. In Soviet-German consultations between the respective Besides Gorbachov's personal intervention , the Soviet ministers of agriculture, according to a source in Bonn, the media in late October and early November have been replete West German agreement to pay "food tribute" to the Soviets with coverage focusing on priority tasks being assigned to met strong, albeit hypocritical, protest from the side of the solve the food crisis. United States. Nevertheless, the deal is expected to be final­ Item. Oct. 22: Sovetskaya Rossiya newspaper reported ized in the near future along the lines discussed in Moscow on a Council of Ministers session in the Russian republic on Oct. 24-27 by Ignaz Kiechle. Oct. 21 "to discuss a question that can leave no inhabitant of Meanwhile, on Nov. 4, the French and German ministers Russia indifferent-the question of measures to increase food of agriculture got together in Bonn and agreed that both production and improve the provision of foodstuffs for the countries will ship more food to the Soviet Union, and at population." They talked about "the real possibility" to sat­ preferential prices. Kiechle went so far as to declare that in isfy needs for dairy products, poultry, vegetable and animal his view, "the issue of peace is more important, now , than fats, potatoes, vegetables, fish products, margarine, eggs, temporary considerations inthe framework of the European tea, candy, bread and macaroni. In other words, none of these Community'S agricultural policy." are being satisfiednow . During the Kohl-Gorbachov Moscow talks, Deutsche Item. Nov. 1: The Moscow TV evening news program Bank signed a 3.2 billion mark credit line for the Soviet Vremya reported that "for four days, Politburo Comrades Foreign Trade Bank, at least half of which will be used for [Lev] Zaikov and [Yegor] Ligachov [recently appointed to modernizing the Soviet agro-industry sector, increasing the head the newly established Agriculture Policy Commission[ output of an estimated 200companies in the food-processing have been studying in detail the work of Moscow's meat and industry in the Soviet Union. Deutsche Bank's Alfred Her­ dairy industry," which "on-the-spot analysis" was part of rhausen does not rule out the possibility that a good part of implementing CC and government decisions on strengthen­ the credit line might also be used for emergency food pur­ ing the Soviet Union's industrial base and food processing in chases by the Soviets in Western Europe . Herrhausen stressed particular.They visited dairy and meat-proce ssing combines, that the supply of consumer goods to the Russian population met workers and specialists, pushed discipline, democracy, "means a great deal for the internal stability of Gorbachov." and the role of primary party organizations in both. On Nov. 7 a Soviet delegation arrived in the West Ger­ man city of Paderborn to discuss food product deliveries to Soviets demand West pay food tribute Russia. Envisaged are sausages, canned bacon, and other Shortly before the Nov. 2 crisis meeting, Gorbachov had durable food products which won't rot before reaching Soviet revealed that procuring food was uppermost in the minds of consumers. the Soviet leadership during his talks on Oct. 24-27 with the West German delegation led by Chancellor Helmut Kohl. Transport bottlenecks During the talks, as the weekly magazine Der Spiegel (Nov. Transport is the big problem in the Soviet Union; at least 7) was to write, Gorbachov "talked the most" not to Kohl , 25% of food cargos usually rots before it ever reaches the but to West German Agriculture Minister Ignaz Kiechle. consumer. Sources in the German government arealso point­ At the Moscow discussions, Kiechle got up to introduce ing out that Soviet experts are expected to contact German himself, and after saying his name, Gorbachov cut him off, agro-machinery companies soon, to buy "appropriate ma­ and said: "I know, you are Kiechle, the agriculture minister." chinery" for food processing, storage, packing, and trans­ Every fifth kilo of butter used in the Soviet Union this port, to reduce the notorious loss of a quarter of the Soviet year has come from French and West German farmers, Soviet harvest. This also includes silo technology, on which the Prime Minister Nikolai Ryzhkov told a mid-October meeting German governmentoffered support and technical advice. of the Soviet Council of Ministers. Next year, he said, every Such large-scale purchases of food-processing industry fo urth kilo would come from French and German farmers. equipment have a military-strategic benefit for Moscow: They West European shipments of food are not limited to butter. will enormously increase in the next few years Moscow's The governmentsof France and West Germany have already capability of building up strategic food stockpiles.

EIR November 18, 1988 International 45 condescend to expand their fishing presence, without having one other crucial demand granted-that the Soviet airline Aeroflot have landing rights in New Zealand, ostensibly to flyreplacement fishingcrews in and out of the country .

Fishing for what? The concessions Mr. Palmer is now negotiating with the New Zealand moves Soviets have virtually nothing to do with "fishing," but are almost entirely military-strategic. As one New Zealand fish­ toward Soviets erman put it, during an earlier phase of discussion of Soviet "fishing rights": "The Russians are bloody useless fishermen. by Allen Douglas They're the worst in the world. Their figures here are an absolute joke. They're ridiculous. A proper commercial op­ eration would not survive on their ability to catch fish." He From Nov. 11-17 New Zealand Justice Minister Geoffrey also pointed out that while a normal New Zealand or Japanese Palmer is visiting the Soviet Union, the highest ranking New fishingvessel might carry a crew of 35, their Soviet counter­ Zealand governmentofficial in 28 years to do so. Palmer will parts often have 80, of which a dozen or so might be radio discuss trade deals with the Soviets, including joint ventures operators . So, if the Soviets are not "fishing" in New Zea­ in developing Soviet natural gas deposits, expanded agricul­ land's waters, what are they doing? tural exports (New Zealand butter sales soared from 11,400 Since the Labour government destroyed the ANZUS de­ tons to the entire East bloc last year to 60,000 tons to the fense pact among Australia, New Zealand, and the United Soviets alone so far this year) , and a greater Soviet fishing States in 1985, by banning the visits of U.S. nuclear-armed presence in New Zealand waters . Though trade is on the ships to its ports , there have been frequent sightings of Soviet agenda, politics comes first, Palmer stressed before he left submarines in New Zealand waters, often immediately off home. "We have improved our trade relationship in recent the coast. This correspondent was shocked, during a mid­ years," said Palmer, "and the New Zealandgovernment would August visit to the country , to hear how very common such like to get the political relationship onto a similarbusiness­ "visits" have become. like basis. " Aside from the generalized intelligence oversight it pro­ The Soviets are rolling out the red carpet for Palmer. vides on sensitive U.S. and French military installations in AfterMoscow , he will tour the Soviet Far East, including the the South Pacific (U.S. installations in Australia and New port of Vladivostok, home of the Soviet Pacific Fleet and a Zealand, and the French nuclear testing ground ,in New Ca­ rare stop in Russia for foreigners. But Mr. Palmer is no ledonia northwest of New Zealand) , there are two major ordinary guest. He is a Soviet sympathizer on many issues, purposes to the density of Soviet sub traffic around New particularly in his support for the Soviets' African National Zealand. Congress (ANC) terrorist band in South Africa. In New Zea­ The first is the more obvious one. For some years now , land, Palmer is widely viewed as a devout Marxist, and anthropologists and radical priests have been building an although his visit will certainly focus on "political matters," insurgency among the small fraction of New Zealand's indig­ there is a more immediate, and more sinister, content to his enous Maori population whom they have managed to radi­ talks. calize. Specificevidence has repeatedly been turned into the There is one overriding issue on Palmer's Moscow agen­ police, the New Zealand government, and the Security Intel­ da: a dramatic expansion of the Soviet Pacific fishing fleet's ligence Service, about arms-mainly AK-47s-being presence in New Zealand waters. New Zealandcorporations brought ashore to these radicals. Eyewitnesses have reported have been in intensive talks with the Soviets for months, on evidence of training camps in remote parts of the country. maintenance contracts for the Soviet fleet. One firm, the Urban gangs who have established links with the Maori rad­ Technic Group, has negotiated a preliminary agreement with icals are also being armed. One well-informed source report­ the Soviets for such maintenance. And at the same time ed, "One policeman I know is a gang liaison officer. He has Palmer is in Moscow, a consortium including the Chri­ had reprimands directed at him for investigating the arming stchurch Airport Co. and the Lyttleton Port Co. will be there , of the gangs. There are obviously training camps where the also lobbying for contracts. radicals are engaged in guerilla training, in addition to those

The Soviets have been keen for several years to extend • trained in Cuba, Moscow, and Libya." their fishing activities around New Zealand, but now they A bloody insurgency is being prepared. In irregular war­ intend to extract maximum satisfaction from their friends in fare , standard estimates are that it takes 10 regular army New Zealand's Labour government. It is widely known, and troops to deal with one "irregular warfare" troop . New Zea­ has been discussed in the Cabinet, that the Soviets will not land's army, allowed to atrophy by Labour, now has only

46 International EIR November 18, 1988 5,700troop s. Thus, as few as several hundred trained irreg­ was the sinking of the Soviet "cruise ship," the Mikhail Ler­ ulars pose an almost out-of-control situation. montov, in New Zealand waters in February 1986 ..Under That prospect is grim enough, but there is another reason mysterious circumstances, the Mikhail Lermontov ,sank in for the extensive Soviet submarine activity , beyond dead-of­ fair weather off the northern tip of the South Island. The night off-loading of AK-47s: mapping the ocean floor for Cabinet minister responsible for the investigation, Richard Soviet submarine traffic. This includes preparations for either Prebble, firstviolated all standing procedures during the pre­ nuclear war or nuclear blackmail against the Western alli­ liminary inquiry, and then decided, in the face of numerous ance . unanswered questions, that no full investigation was called Submarines move along the ocean bottom by emitting for. sonar signals to determine the terrain through which they For over one full year, until April 1987, the entire area must move. However, by emitting sonar signals, they expose was sealed off by the New Zealand government, ostensibly their own position and are therefore vulnerable to anti-sub­ because of an "oil slick" produced by the shipwreck. For marine measures. What the Soviets are clearly doing in the much of that time, however, the Lermontov was emitting South Pacific in general, and around New Zealand in partic­ signals of the nature needed for very long-wave mapping of ular, is developing a "road map" of the ocean floor, so as to the ocean floor. Accordingto experts, the sunken ship would be able to move under pre-war or wartime conditions, without have been one of the three fixedpoints needed fortriangula­ countermeasures being taken against them. In addition, by tion mapping. Extraordinary secrecyand disinformation still having established a fixedprofile of the ocean as background, surrounds all aspectsof the Lermontovaff air. the Soviets are also able to detect U.S. submarine presence, as anYthing unusual which stands out against the known map. The New Yalta deal Specialists in submarine warfare point out that, besides Such Soviet activity offshore presumes the compliance evasion and attack procedures for enemy submarines, the of powerful circles in New Zealand. The acquiescence of the Soviets would also be mapping the ocean bottom to establish Labour governmentis not surprising, riddled as it is with pro­ "beacons'j to position Soviet nuclear-missile-carrying subs, Soviet figures such as Prime Minister David Lange, who to fire their missiles. Since, under conditions of full-scale began his legal career with defense work for the Moscow­ nuclear war, electromagnetic communications through the funded Socialist Unity Party, ANC supporters Palmer and atmosphere become very difficult-ifnot impossible-sub­ ForeignMinister Russell Marshall, and Minister of Overseas marine firing positions must be established ahead of time, Trade Mike Moore, who was elected to Parliament with the through the sort of "peacetime" mapping the Soviets are help of a clique of Trotskyists. doing. But this activity also presumes the acquiescence of the In addition to the numerous clandestine Soviet subs vis­ business circles who put the Lange governmentin power, led iting New Zealand for mapping purposes (reports of which by Sir Ron Trotter, chairman of the Business Roundtable and have been systematically quashed by the government), there of one of the twolargest corporations in New Zealand, Fletcher is an astonishing range of Soviet "scientific, " "touristic," and Challenge. In 1979, Fletcher Challenge, which had no ships "commercial" ventures which also involve this sort of prep­ of its own, entered into joint "fishing" agreements with the aration. Typical is the recent New Zealand Ministry of For­ Soviets, the agreements which are now to be greatly expand­ eign Affairs approval for a three-week "scientific research ed. project" involving 65 Soviet scientists and the 6,OOO-ton Also curious is the lack of alarm on the partof the United "research vessel" Academik Mstislav Keldysh, for early next States. When New Zealand newspapers contacted the U.S. year in the Bay of Plenty, a large expanse off the east coast embassy in New Zealand, the public response was "no com­ of the North Island. The alleged purpose of this Soviet ex­ ment." Privately, which "private" assessment was publicly pedition, partof a Pacific-wideeffort , is to look for deep-sea printed, embassy people noted that they had no objection to volcanoes and thermal vents. According to reports in the New the proposed Aeroflot landing rights, even though Aeroflot Zealand Herald of Oct. 14, "Submersible craft would be used would be landing right next to a sensitive U.S. installation to look at some of the featuresrevealed by sophisticated sonar for work in Antarctica, the Deep Freeze base. One could scans of the bay in June which had produced thefirst pictorial infer, as EIR did over two yearsago (EIR , Sept. 5, 1986) that images of the New Zealand seabed." Are such "submersible New Zealand was being ceded to the Soviets as part of a craft"in fact Soviet minisubs, which have been found crawl­ "New Yalta" redrawing of the world's map, between the ing Sweden's harbors, and which have reportedly been sight­ Soviets and the liberal Establishments of the West. The fact ed near the mouth of one New Zealand river? "Maintenance" that Justice Minister Palmer, who is notorious for his state­ vessels sighted off New Zealand have been identified by ments that "there is no place in New Zealand for the private experts as submarine support ships! ownership of land," is visiting Washington for a week before One of the most notorious incidents in recent New Zea­ his Moscow junket, would do nothing to dampen that sur­ land history, which almost certainly involvedsuch mapping, mise.

EIR November 18, 1988 International 47 Israel: another fu ndamentalist state in the Middle East? by ThierryLalevee

The possibility, or rather, nightmare of Israel becoming the when the activists of the Gush Emunim extremist settlers Middle East's next fundamentalist state, ruled by rabbis as movement began staging mass demonstrations in Tel Aviv firmlyas Iran by ayatollahs, has now become a very concrete and Jerusalem urging that settlers be allowed to build new issue, and has sent shivers down the spines of the majority of settlements in the West Bank, after more than four years secular Israelis and mainstream Jewish communities abroad. during which, as part of the termsof the Labor-Likud national Of course, the four religious parties that together now unity coalition government, all new settlements had been have 18 seats in the Knesset, are hardly united on all issues. forbidden. For example, both Rabbi Eliezer Schach of the Degel Torah, Similarly, the cult issue of Solomon's Temple, which which has two seats, and Rabbi Ovadia Joseph, a former allegedly sat atop Temple Mount in Jerusalem, on the site of chief rabbi who is the spiritual mentor of the Sephardic party what is now the second holiest site in Islam, the Dome of the Shas, which has six seats, have at times expressed dovish Rock containing the Al Aqsa mosque, is expected to become views regarding the Occupied Territories and the issue of a hot political issue under pressure from those who think that territorial compromise. the time of the Messiah has come. They insist that the mosque These views are quite differentthan those of Lubavitcher be destroyed and Solomon's Temple rebuilt-a casus belli Rebbe Menachem Schneerson of the ultra-OrthodoxAgudat for the entire Arab world. Israel, with fiveseats , and of those of the traditional National With both issues, the way Israel's elections have been Religious Party , also with five seats. manipulated from the outside, come to the fore . While many Yet, those divergences matter little when it comes to have begun talking about the "orientalization" of Israeli so­ Israel's daily life. As writer David Krivine put it in the Nov. ciety, it should be recalled that Agudat Israel's leader, Rebbe 4 edition of the Jerusalem Post. "One feared a Likud victory. Schneerson, came to Israel fresh from the Flatbush section What has happened is worse, a victory for the religious bloc. of Brooklyn, New York to lead the electoral campaign. And Not a victory for religion . . . but for narrow religious sec­ there was nearly as much of an outburst of Jewish fundamen­ tarianism." talist joy at the Israeli election results in Brooklyn as there Commenting in the same issue, East Jerusalem-based was in Israel itself. Flatbush Hassidim announced that the Palestinian editor Othman Halak wrote, "As a Palestinian "days of exile are over., the time of the Messiah has come," observer . . . I wish to start by welcoming Israel to the Mid­ Israel's crazy-quilt of Jewish fundamentalist cults is in dle East. . . . The religious fever that took over Iran with the fact an American-based fundamentalist movement, not Isra­ Islamic Revolution has gripped the entire Middle East. It eli at all. It had earlier found its expression in Meir Kahane's affects the entire Arab world, and is now being felt in Is­ Jewish Defense League, Israel's Kach movement, which rael. ...It is bad enough that the Palestinian-Israeli struggle became so extreme it was banned from the electoral cam­ has expressed itself so far as a clash between two nationali­ paign, and yet it spearheaded the victory of the religious ties ....But as the days go by, it is becoming more and parties. more a clash between Judaism and Islam ....If the struggle Kahane is not his own man. Some questions may be worth becomes a religious clash, then we ilfe all doomed." asking about the lenient policy of the U.S. State Department toward Kahane, who, although he had renounced his U.S. Religious or political manipulation? citizenship to participate in the Knesset elections last sum­ Most,immediately, the fundamentalist transformation of mer, was allowed by the State Department to travel to the Israel's politics is expected to be felt at two levels; the settle­ United States on an out-of-date passport, after he claimed ments iIi the West Bank and the question of Jerusalem. The that he had renounced his citizenship under duress. final results of the elections had not yet been made public A no-less-significant consideration is the tempo of relig-

48 International EIR November 18, 1988 ious exchanges between the New York Hassidic Lubavitch­ ers and the Soviet Union, with Moscow inviting large dele­ gations for visits over the last year. A predictable result of this potential nightmare of cults taking over Israel, is that the most extreme among the secular parties, like the Likud, may begin to look moderate . That has not been lost on the likes of Gen. Ariel Sharon, or Gen. Runcie drops his Rehovam Ze'evi of the Moledet (Homeland) party, which advocates the total expulsion of the Palestinian people from mask, claims Nazis the Occupied Territories. were Christians Political crisis ahead? At the same time, however, these events have thoroughly The pro-Russian head of the Church of England, Arch- . shockedthe mainstream of the Israeli people, as indicated by bishop of Canterbury Robert Runcie, declared Nov. 9 violent anti-Orthodox commentaries which have appeared in that Christianity, in and of itself, is "guilty" of having the Israeli news media. Israeli intelligence sources predict caused die Nazis' Holocaust against the Jews. months-ofpolitical crisis, with no government coalition being "Christians areguilty ," Runcie declared at a meet­ stable enough to rule the country . ing called in London to commemorate the 50th anni­ Likud's attempt to form a coalition alone with the relig­ versary of the Nazis' anti-Jewish Kristallnacht po­ ious nuts is now being challenged by desperate negotiations groms of 1938. betWeen Labor and some of the smaller secular parties to "Many Jews knew that it was Christians who pushed form a minority government. them into the gas chambers," Runcie said. "It is no At the same time, within the established parties, there good saying they were not real Christians any more have been public outbursts of anger fromthe secondary lead­ than we should say that those who did not go regularly ership against the primary leadership. Inside Labor, Shimon to synagogues were not real Jews ....The travesty of Peres and Yitzhak Rabin have been at each other's throats, Kristallnacht and all that followed is that so much was with Rabin talking quite openly of the possibility that he will perpetrated in Christ's name. " join the Likud coalition. But both Rabin and Peres, the former Runcie, a confirmed gnostic who accepts the Rus­ now Defense Minister and once Prime Minister, the latter sian Orthodox Church's doctrinal views on Christian now Foreign Minister and once Prime Minister, have come theology, is lying willfully. The Nazi leadership, to a under strong attacks from younger politicians for the utter man, was pagan and satanic in belief. failure of their electoral campaigns. The Nazis hated the person of Christ, and they did The same is occurring inside the Likud, where younger what they did to defile "Christ's name." Had Hitler not leadership, although belonging to a seemingly victorious par­ been defeated on the battlefield, he would have begun ty, is challenging the position ofluminaries like Ariel Sharon . to do to Roman Catholics generally, what he did to the A potential reshuffleof Israel's political leadership could Jews. Hitler and company regarded Jews and Chris­ have two results. Within months, a national unity coalition tians as inextricably linked in a "Judeo-Christian" cul­ may have to be formed. One of its main tasks would be to tural-philosophical matrix, which they bitterly hated. change Israel's election laws. It will also have to face once Runcie was speaking at a Kristallnacht commem­ again the unresolved issue of what kind of constitution Israel oration in London, where he was sharing a podium should have. Inability to resolve those issues will only en­ with Cardinal Hume, the Roman Catholic Archbishop courage the trend toward disintegration of the established of Westminster and head of the British Catholics, and parties, and the emergence of new political coalitions. British Chief Rabbi Lord Jacobovitz. Israel is not expected to have much time to quietly face This "Christians as Christians are guilty for the such issues. Israel's elections have not resolved the Palestin­ Holocaust" theme first surfaced in Britain in a major ian uprising in the Occupied Territories, the so-called Inti­ publicized way this fall, when the Soviet-linked Robert fa da.By the end of November, it will have to face whatever Maxwell financed a conference at Oxford University challenge is mounted by the Nov. 15 Palestine National on the Holocaust, at which speaker after speaker stated Council meeting. what Runcie said on Nov. 9. The easiest, and most dangerous, way to suppress the Interestingly, the one important dissenter then, was leading issues is for the Israeli hardliners to lead the country the British chief rabbi, who warned that Judaism can­ into a new Middle East war. Doubtless, were that to come to not base itself on the Holocaust as the central reality of pass, it would set into motion a process of religious fanati­ Jewish belief, since that would only undermine the cism which could become irreversible, and doom the region Jewish religion, which has a long and rich tradition. to perpetual bloodshed and chaos.

EIR November 18, 1988 International 49 Colombian President Barco surrenders to narco-terrorists

by RobynQUi jano

The Colombian government's retreat in the two weeks fol­ Samudio warnedthat the martyrdomof officialsand soldiers lowing the successful defusing of the Oct. 27 general strike, cannot continue. "I believe that the subversives are demand­ and a forced shake-up in the military command, has threat­ ing a military response, and we are going to give them one," ened to leave that nation, under the worst communist subver­ he said. "I exhort [everyone], from the commander of mili­ sive assault in its history, without the leadership it needs to tary forces to the last soldier, to go on a total offensive, to survive. "The Army's hands are tied," warned one retired destroy the enemy, to eliminate him, and to break his will to general , afterhardline anti-terrorist Defense Minister Rafael fight. . . . I don't know if there is dialogue at this moment. I Samudio was forced to resign. "The terrorists have launched know that the military forces are going to answer with the a total war with the aim of seizing power. The government's armsthat the nation has given us." talk of a peace initiative under these circumstances is like After Samudio spoke, the Barco government reiterated negotiating surrender," said a Colombian political analyst. its intention to continue a "dialogue" with the terrorists. Bar­ As President Virgilio Barco, along with Cabinet minis­ co responded to the defense minister by saying that armed ters and military officials, attended mass on Nov. 6, in a quiet confrontation "is not the solution for Colombia," and that the commemoration of the third anniversary of the Nov. 6-7, government's "peace initiative will continue." He said that 1985 narco-terrorist massacre of 11 Supreme Courtju dges, respect for human rights is fundamental for the country and the nation was again facing a terrorist offensive. its armed institutions. He did not mention the civil rights of On Nov. 4, Defense Minister Samudio was forced to the military men who have been massacred, nor of the resign . He had been a target of the terroristssince 1985, when hundreds of thousands of Colombians who remain without he participated in the operation to retake the Justice Palace in electricity because of dynamited electrical grids, nOf of the Bogota, where the M-19 terrorists were holding all the Su­ thousands murdered by the terroristban ds. Barco thus echoed preme Court judges and dozens of others hostage. the line of Amnesty International and the "human rights" Samudio was forced out of office after President Barco lobby, which serves as the lawyers for terrorism. had refused to back the military in a counteroffensive against Fernando Landazabal Reyes, the former defense minis­ the current assault, whose high point was to have been the ter, called the ouster of Samudio a " victory for the enemies Oct. 27 communist-backed general strike. While Barco was of Colombia." "I have the feeling," he told the Bogota daily at a presidential summit in Punta del Este, Uruguay, Acting Espectador, "that the political powers make alliances with President Cesar Gaviria collaborated with the military, im­ the extreme left under the pretext of seeking peace, in order posing tough emergency measures that made the strike 95% to facilitate the victory of Colombia's enemies. " The govern­ ineffective. That collaboration and the tough policy was wel­ ment's position "is a recognition of the spirit of unconditional comed by the Colombians, tired of the continuous violence. surrenderin the face of the armed insurgents. The minister is But President Barco refused to learnthe lessons of the averted leaving for defending the lives of his soldiers," Landazabal strike . warned. In his letter of resignation, General Samudio stated: "I have the moral authority to demand at this time decisive A nation in fear action on the part of the Armed Forces." General Sarnudio's While Colombia is reeling from two weeks of a brutal publ�c conflict with President Barco began with statements terrorist offensive, whose aim was to destroy the electrical he made at the funeral of six soldiers from the Army's Corps grids throughout the country, the government continues to of Engineers, who had been ambushed and massacred by the talk of its "peace initiative" with the enemy. Soviet-run FARC guerrillas. At the funeral for the six men, On Nov. 6, Attorney General Horacio Serpa Uribe told

50 International EIR November 18, 1988 the international press corps that it is hard to guarantee judi­ installations of Ecopetrol, the state oil company. Most im­ cial impartiality in cases against the drug mafia, "because portant, his courage and leadership have remoralized those everyone in Colombia is afraid, and you need a high degree living within the military zone he commanded, involving of civic courage and character not to be intimidated." them in successful collaboration with the military against the Serpa Uribe unwittingly gave a perfect description �of terrorists. what is lacking in the present government. President Barco's insistence that a war will not be fought against the terrorists, Economic warfare ' at the same time that the terrorists pursue and step up their The head of Colombia's industrial association, Fabio offensive against the people and the economic infrastructure Echeverri Correa, said on Nov. 7, "Everyone knows we are of Colombia, has leftthe citizens terrified. at war ....The government has proposed a peace plan that Ex-presidential candidate and Conservative Party leader the guerrillas have refused to discuss ....[General Samu­ Alvaro Gomez Hurtado, who was kidnaped and then released dio] is right, that there must be a military answer to the by the M-19 several months ago, hit Barco for his refusal to guerrilla ....The time for dialogue is over." act like a President in this time of crisis. In an interview with Industrialists have been particularly targeted by the nar­ Radio Caracol in Bogota on Nov. 10, he said, "The govern­ co-terrorist offensive, since key areas of the country have ment is showing an indifference to the facts ....There was been blacked out for nearly two weeks-and with no electri­ a small �covery with the Minister of Government [Acting cal power, there is no industry. The only "economic activity" President during the period of the strike] who maintained the terrorists protect is the drug traffic, from which they serenity and a miniumum of presence. Don't forget that in derive millions of dollars in protection money to finance their Colombia we have a presidential system . . . and suddenly war. it's.dear that that is where we have the vacancy." Minister of Mines Oscar Mejia Vallejo announced on Nov. 6 that the terrorist sabotage which left Colombia's At­ Military under assault lantic coast without electricity was carried out by workers Attorney General Serpa's office has given Colombians connected to the ELN. Mejia said that terrorist attacks had more to be fearful about. caused losses this year of $366 million, and attacks on oil On Nov. 8, criminal charges were leveled against Gen. and gas pipelines have caused damage of more than $400 Jesus Armando Arias Cabrales, for his role in leading the million. In the last week of October alone, 16 transmission retaking of the Justice Palace from the M-19 terrorists in lines and 35 electrical towers were destroyed. 1985. The M-19's plan was to hold the government hostage In the Nov. 3 issue of Voz, the Communist Party news­ and "negotiate" for months, a plan that was sabotaged when paper, AnfbalPala cios, executive member of the CUT trade then-President Belisario Betancur refused to negotiate, and union confederation and leader of Frente Popular, the politi­ backed up the military . Any attempt to try General Arias for cal arm of the Popular Liberation Army (EPL), is quoted his role in ending the terrorist siege of the Justice Palace, threatening the government: "Let there be no mistake. We would tell both the communist guerrillas and the drug cartel are capable of blacking out the Atlantic Coast if the [CUT's] who paid the M- 19 millions to seize the Justice Palace and situation is not resolved favorably." Since the unsuccessful bum all the files on the drug-running "extradictables," that strike called by the CUT, that confederation has split, with their "human rights" will be protected at all costs. its president, Jorge Carrillo, and the democratic sector organ­ Until Nov. 8, General Arias commanded the UraM re­ izing their own confederation, which harshly attacked the gion, the only zone of the country that was totally paralyzed subversion and the manipulation of the trade unions by the by the Oct. 27 strike, and which was described by the gov­ communists. The communists and terrorists now have their ernor as "in a state of war." Arias, hated by the communists own union. for his tough anti-terroristactivity , was removed to a position The more President Barco backs down, the more the without troop command. terrorists take the offensive. On Nov. 10, a truckloaded with The military shake-up surrounding the resignation of Gen. 40 kilos of dynamite exploded outside the infantry battalion Samudio also led to the removal of Gen. Farouk Yanine Diaz of the IV Brigade of Medellin . The bombing was claimed by as commander of the ArmySecond Division. He will become the "Martyrs of UraM" commando of the ELN. UraM is the deputy chief of staff of the Armed 'Forces, a post without zone that General Arias commanded. While the removal of troop command. The Bogota daily �a Prensa characterized Arias was understood by many to be a giftto the terrorists, this transfer as a victory for the ELN (National Liberation they have thanked the government with further assaults. Army) terrorists, who had demanded the removal of General Although the government has imposed its will on the Yanine from his post. military for the time being, President Barco's refusal to face ' Yanine was known as the toughest military commander the fact that Colombia is already at war, can only lead to a in the country, one able successfully to neutralize the ELN. stronger offensive by the narco-terrorist subversives. And He recently blocked an attack the ELN had planned against the country is getting very tired of surrender.

EIR November 18, 1988 International 51 Argentine presidential race begins amid general disgust with Alfons in by CynthiaRush

The presidential candidates of Argentina's two major parties debtors to form a debtors' cartel, to jointly confront creditors. officially launched their campaigns in mid-October. Culmi­ "There is no possibility of any country getting out of the debt nating in the May 1989 elections, the race pits the Peronist trap, in isolated fashion," the candidate said. "We must act candidate, governor of La Rioja Carlos Menem, against the jointly." Cordoba governor Eduardo Angeloz, of the ruling Union Menem's campaign got off the ground officiallyon Oct. Cfvica Radical (UCR) party . The campaign promises to be a 15 and 17, in rallies held in La Rioja and Buenos Aires, heated one, given the volatile nature of Argentina's econom­ respectively. Speaking before a raucous crowd of 80,000 at ic, social, and foreign debt crisis, and popular disgust with Buenos Aires' River Plate stadium on Oct. 17, Menem de­ the last fiveyears of President Raul Alfonsin's submission to nounced the Alfonsin governmentfor causing increased mis­ the International Monetary Fund's dictates. ery over the past five years, leaving citizens "without hous­ Carlos Menem is the wild card in this race. The maverick ing, without jobs ...while illiteracy grows." He explained provincial governor, not a nationally prominent figure, was that his intention was not to confront workers with capital , not supposed to be the Peronist nominee. His rival, the social­ but to unite all sectors around the goal of a "revolution of democratic governorof Buenos Aires, Antonio Cafiero, had production. " been the expected winner in last July's primary. But Me­ In the La Rioja rally, Menem described the current gov­ nem's attacks on the IMF, his call for a moratorium on pay­ ernment as "the magicians who, in a country with food, let ment of Argentina's $56 billion foreign debt, and defense of many sectors of the community go hungry. They are magi­ national sovereignty, served as a rallying point for nationalist cians because they say they've progressed on the path to forces who saw Cafieroas much more of a tool of the Socialist growth and development, yet they've mortgaged the country Internationalthan a defender of national interests. over the last five years by another $15 billion," a reference Menem is still an unknown quantity, and has yet to pres­ to the increase in foreign debt. A week earlier, Menemhad ent clear proposals on economic and other policy matters. charged that the $1.25 billion loan package recently granted Moreover, the Peronist movement, the Justicialista Party, is Argentina by the World Bank would be used "to consolidate rife with internal dissent, as "reform" factions tied to the the culture of speCUlation, detrimental to the culture of pro­ Socialist International and foreign creditors try to shape pol­ duction, work, and industrialization, which is our proposal." icies for the candidate that they hope will be less offensive to The World Bank funds are tied to Argentina's compliance in the international banking community. opening up its economy, banking, and industrial sectors to Nonetheless, the danger that a Menem government po­ free trade, eliminating protection for industry and the possi­ tentially represents for Argentina's foreign creditors is that it bility of sovereign economic development. would speak for a revitalized nationalist coalition of trade UCR candidate Eduardo Angeloz, a businessman with unionists, sectors of the Church and Armed Forces which close ties to the military factions that ran the 1976-83 junta, have traditionally made up Peronism's base. If these forces is a rabid free-trader whose agenda is that of the Project are mobilized around a program for national industrial de­ Democracy crowd inside the U.S. State Department: Elimi­ velopment, and realization of the nation's potential as a con­ nate the role of the state in economic policy, privatize all tinental leader in science and technology, then the bankers' major state-sector companies, open up the economy to "for­ nightmare of Argentina slipping out of their control will eign competition," and let Argentina's relations with other become a,reality. In the context of the explosive Ibero-Amer­ developing-sector nations take a back seat to ties with the ican debt crisis, this option is not the creditors' preferred one. United States. Speaking from a conference in Paris on Nov. 4, Menem His disadvantage is that he is identified with the failed heightened bankers' fears when he called on Ibero-American economic policies of the Alfonsin government which have

52 International EIR November 18, 1988 reduced living standards, gouged wages, and punished na­ answer such charges. At the same time, Caridi's determina­ tional industry �ith IMF-dictated restrictions on credit. Re­ tion to purge some 120 nationalist officers, on the grounds cently Angeloz has tried to distance himself from Alfonsfn' s that they are sympathetic to the rebellious Col . Aldo Rico, policies by admitting that "mistakes have been made" and by has created a virtual state of revolt among these middle-level expressing reservations about the government's policy Qf officers against the Army high command. Inadequate wage reducing protection for national industry. The Cordoba gov­ levels areexacerbating the crisis. ernoralso has to contend with deep divisions within his own Alfonsfn may seek postponements of the generals' court party, particularly resistance from the party's Socialist Inter­ appearances, with the intention of foisting the problem off national wing, led by Foreign Minister Dante Caputo and on the next President. However, the Oct. 21 issue of the Interior Minister Enrique Nosiglia. weekly El lnfo rmador Publico reported that some of Me­ nem's advisers fear that the current Army crisis could evolve Tense period ahead into a preemptive coup against the Peronist candidate, to The outcome of the next few months' political brawl is prevent him from becoming Argentina's next President. In unpredictable, because of the depth of crisis in virtually every statements to the press in mid-September, Menem even sug­ sector of the economy and political establishment, and a gested that Alfonsfn might attempt an auto-golpe-a self­ growing polarization among citizens .. inflicted coup-as a way of escaping the consequences of his • The foreign debt crisis is out of control, despite recent failed policies, and preventing the Peronists from coming to pUblicity about new loans from the World Bank and the Bank power. for International Settlements. Argentina needs at least $3.5 A major element in UCR strategy is to rely on the State billion in freshfunds from foreign creditors, but the latter are Department's portrayal of the Peronists as "authoritarian," demanding that the government pay a significant portion of violence-prone, and even Nazi-leaning forces who will de­ the $1 billion in interest arrears before new funds can be prive Argentines of the "democracy" Alfonsfn has bestowed committed. The governmentpaid $500 million in arrears , but on them. Angeloz has reportedly met with unnamed consult­ must pay at least another $500 million to be considered wor­ ants from the U.S. Republican Party, to help plan his media thy of more loans. Argentina's negotiations with the IMF for campaign. His running mate, Juan Manuel Casella, returned a new $1.2 billion standby arrangement are proceeding at a from a trip to the U.S. at the end of October to give glowing snail's pace. reports that the negative campaign ads employed by George • There is a growing tendency toward public revolt by Bush would lead to a Republican victory and to the growth angry Argentines over the collapse of public services and of a new "conservativenationalism" in that country based on exorbitant and constantly increasing utility rates. Organized "free enterprise." Undoubtedly the Angeloz-Casella ticket rallies in which citizens bum their unpaid bills are becoming entertains similarfanta sies for Argentina. commonplace. There is talk of more organized "civil diso­ Argentine pollster Manuel Mora y Araujo went to great bedience. " lengths in a commentary in the Oct. 7 Wall Street Journal to • During the weekend of Oct. 22-23, seventeen Peronist assure readers that Carlos Menem' s unexpected victory last governorsmet in the province of Chubut to "declare war" on July was little more than a fluke. No Argentine wants to return the Alfonsfn government. The governors charged that the to the dirigistpolicies associated with Gen. Juan Peron, Mora UCR government has deliberately withheld federal funding y Araujo asserted. Why, he continued, "more than half the for those provinces governedby Peronists, to bankruptthem , adult population thinks that Argentina should improve links provoke social conflict, and politically discredit Peronism. with Western countries, and accept negotiations with the The governors called for a series of popular assemblies to International Monetary Fund to deal with the foreign debt meet around the country, culminating in a Nov. 11 demon­ problem." stration in Plaza de Mayo in Buenos Aires, to include dele­ Pollsters and U.S. media consultants notwithstanding , gations of businessmen, farmers, trade unionists, and politi­ the reality is that Argentines are enraged over the economic cal leaders from all of the provinces. The demonstrators will and moral dissolution of their nation, and want some straight march to the National Congress to state their case there. answers. The Catholic Bishops Conference reflected this in • In the Army, crisis has erupted over the fact that 15 a strongly worded document issued on Oct. 28, which de­ generals have been called to appear in federal courtto answer scribes the depth of corruption and cultural decay afflicting charges of human rights violations c�mmitted during the late Argentina. Entitled "Only God Is the Lord," the bishops 1970s' "war against subversion." Several of the generals charge that there is an "idolatry of power, sex and money" in have stated that they will not appear in court, creating the Argentina, seen in "the scandal of poverty and misery in large conditions for a showdown with the government. sectors of the population, unemployment, and the loss of a The accused generals reportedly have the backing of Army true culture 6f labor." The Church lambasts political leaders Chief of Staff, Gen. Dante Caridi, who promised some time for thinking that their power is "divine," and for not seeking ago that no Army officer would have to appear in court to urgent solutions to the deteriorating conditions.

EIR November 18, 1988 International 53 Seoul's northern policy rests on U. S.-Korea alliance by Linda de Hoyos

Using its successful hosting of the Summer 1988 Olympics human, technological, and financialresource s." as its diplomatic springboard , the Republic of Korea has "Reconnecting every roadway" implies a massive effort embarked on a foreign policy revolution aimed at bringing from the South to develop the Northerneconomy, since as is about the eventual reunification of the divided Korean pen­ known, the paved roads of South Korea abruptly tum into insula. The new tack was officially named "the Northern rubbled dirt roads as soon as the border is crossed. Policy" by South Korean Foreign Minister Choe Kwang-su Sending signals to the West and East bloc alike, Noh in an interview with the Korea Times Nov. 1, but it was first requested that "our allies and friends will contribute to the put forward in the speech to the United Nations General progress and opening of North Korea by engaging Pyon­ Assembly by President Noh Tae Woo on Oct. 4. gyang in expanding relations ....[and that] those socialist Noh began his carefully worded speech by noting that the countries with close ties to North Korea continue to maintain "joy ofliberation" from Japan in 1945 "soon turnedto despair positive relations and cooperate with North Korea even as over the tragic division of our homeland. . . . As a matter of they improve their relations with us. " convenience in the process of disarming the defeated colonial Noh also used the forum of the United Nations to call for forces, a line of artificial division was drawn through the a six-nation conference on the Korean peninsula, to include mid-section of the Korean peninsula along the 38th parallel. China, Japan, the Soviet Union, and the United States, along The decision to divide our land was made against the will of with the two Koreas. The conferencepropo sal, however, has the Korean people, dictating the fate of the nation in the been rejected by both North Koreaand the Soviet Union. decades to come." Now, Noh made clear, South Korea's economic success, Opening up the trade front . which has transformed its postwar agrarian-based society In the meantime, however, Seoul has taken strides to into a fully industrialized nation, combined with its entrance open up economic relations with China and the Soviet Union. as a nation on the international scene with the hosting of the The Koreans' strong point is their international renown,in Olympics, has given Seoul the momentum to attempt to reu­ building roads, bridges, and canals. South Korea has been in nify the Korean peninsula, implicitly under the hegemony of the forefrontof infrastructure building throughout the Middle the South. East, and also in Libya, with a reputation of being able to It was out of well-founded fear of this eventuality, that build roads faster and better than anyone in the world. the North Korean regime of Kim II Sung had launched into a The deputy chairman of the Soviet Chamber of Trape and frenzy of threats against the South's holding of the Olympics Industry spent six days in South Korea is the middle of Oc­ without full co-hosting with Pyongyang, the North Korean tober, and it is expected that agreements will be reached for capital . North Korea's plans to wreck the Olympics with acts the opening of trade offices in both Seoul and Moscow in of terrorism and sabotage were, however, squelched by the December, when Yi Sun Ki, president of the Korea Trade Soviet Union, which sent then-KGB chief Boris Chebrikov Promotion Corporation (KOTRA), goes to Moscow. to Pyongyang in September to issue Moscow's threats of The centerpiece of any South Korean-Soviet trade coop­ retribution should NorthKorea pursue its terrorist mode. eration pact would be South Korean participation in the de­ In his UNGA speech, President Noh issued his offer to velopment of Siberia. Although Japan is Moscow's favored the impoverished North: "I have taken concrete steps to pave partner in this endeavor, the Soviets appear to have run i.nto the way for free trade between the northern and southern a stonewall from Tokyo on the issue of the return of the four sides of Korea. We must transform the North-South Korean Kqrile Islands Russia seized from Japan in the final hours of relationship , so that we can reconnect every roadway , wheth­ World War II (see article, page 9)."Big business groups are er a major highway or a little path, linking the two sides mapping out strategies to penetrate into Siberia," the Korea which remain disconnected now. Then we could be enabled Times reported. . . . Active participation in socialist nations' to go on to develop our common land, by combining our development projects will be the new avenue for Korea's

54 International EIR November 18, 1988 economy in the days to come. Daewoo, Samsung, and Lucky­ the idea of cultural and trade exchanges-since the compar­ Goldstar have been busy tapping out possible participation in ison between the two countries is a severe point of. embar- the project 'against all odds.' " rassment to the North. However, as the Koreans are also careful to note, Soviet The communique instead focused on the military side, joint venture laws hand all the risk to the foreign investQr, with the first point being the withdrawal of U.S . ground with very little opportunity to reap the benefit. In the case of forces from South Korea, followed by proposals for arms China, which does not have diplomatic relations with Seoul cuts by both North and South, and the conversion of the either, steps have been taken to increase and acknowledge demilitarized zone into a "peace zone." The communuique the sizable secret trade that exists between Seoul and Beijing also called for the eventual creation of a democratic confed­ through Hong Kong. erate republic, to be known as Koryo. Upping the ante, President Noh further announced from In short, Pyongyang, maintaining its insane profile, in­ Kuala Lumpur, Malaysia, on Nov. 4 that South Korea would sists that negotiations be limited to a direction which aims at be willing to give "active support" to economic restoration the removalof U.S. troops. works in Vietnam, if the Hanoi government withdraws its troops from Kampuchea. Importance of U.S.-South Korea alliance As 10 the North, Seoul has put numerous offers of eco­ But in point of fact, as South Korean Foreign Minister nomic aid on the table. In his' U.N. speech, Noh called for Choe Kwang-su pointed out in an interview with the Korea the creation of a brand new city on the site of the current Times Nov. 4, ''The 'Northern Policy' can only be pursued DemilitarizedZone , to be inhabited by both reunitedfamiles efficiently on the basis of the solid R.O.K.-U.S. security fromthe North and South. cooperation." This is by no means negated by PresidentNo h's .on Nov. 1, Seoul Communications Minister 0 Myong call for a loweringof the U.S. military profile, in an interview said that the South is willing to assist the North in the mod­ with the Los Angeles Times Nov. 1. Noh stated that steps to ernizationof its outdated communications system. Seoul has do so would include: 1) eventually freezing South Korean 3.4 million telephone lines, against Pyongyang's 80,000 lines. troops from U.S. operational control; 2) moving U.S. mili­ Added 0: "If the North agrees, we are willing to install a tary headquarters out of Seoul; 3) revising the status-of-forces video confernce system linking Seoul and Pyongyang to fa­ agreement to give Korean courts more jurisdiction over U. S. cilitate inter-Korea talks." servicemen involved in criminal acts; and 4) removing U.S. South Korea is also studying the resumption of inter­ Armed Forces Network telecasts from Korean channels. Korean electricity transmission, which has been cut off for In part, Noh is attempting to accommodate to a backlash the last 40 years, reported Yonhap Nov. 4. The South is of anti-Americanism that has been spurred in large part by immediately capable of supplying 200,000 kilowatts of en­ U.S. actions against South Korean trade. "It is more than ergy an hour to the north, if agreed, said South Korean En­ natural, that a sovereign state should have the power to con­ ergy and Resources Minister Yi Ponfgso. The delivery would trol its own military forces." have to be preceded by the construction of an electricity cable However, unlike the Council on Foreign Relations or the line some 60 kilometers long linking South Korea's Munsan Carnegie Endowment for Peace, which are calling for a uni­ relay station, and North Korea's Pyongsan station. South lateral withdrawal of U . S. ground forces from South Korea, Korea's power generation, mainly by thermal and nuclear leaving only aU.S. air capability, President Noh said: "This power plants, has reached 19.02 million kilowatts an hour; is not the proper time to discuss reductions of American the North's produces 8.7 million, mostly with hydropower forcesor a change in the command structure." and thermal power. "We will be able to supply free electricity Only "when relations between the two Koreas improve, to the North, if it suffers a shortage of rainfall," stated Min­ and there is a definite guarantee that tension will be reduced ister Vi. and peace secured and cooperative relations between the To a significantdegree , within South Korea, the impetus south and north are estabished, that will be the time to think for these proposals comes fromthe 4 million people who fled of changing the present command structure." theNorth in the aftermath of World War II and then during Although President Noh has attempted to take advantage the Korean War. Arriving with nothing but what they could of the appearance of a decrease in tensions between the su­ carry ontheir backs, these "northerners"have played a major perpowers to put forward proposals for the peninsula's reu­ role in the industrialization of the S!luth, which until the last nification, the gravest danger to his "Northern Policy" would two decades, was the most underdeveloped areaof the Ko­ be to subsume it under the New Yalta "regional deals" now rean peninsula. under negotiations between the Kremlim and the State De­ The response from North Korea, however, has not been partment, in particular by Undersecretary of State Gaston promising. On Nov. 8, the NorthKorea Central News Agen­ Sigur. Any encasing of Noh's proposals under negotiations cy published a communique with Pyongyang's proposal for for the withdrawal of U.S. troops from South Korea, auto­ the peninsula's reunification. The North pointedly rej ected matically knocks out Noh's own bargaining position.

ElK November 18, 1988 International 55 Indo-Soviet relations : Is there a sea-change coming? by Susan Maitra and Ramtanu Maitra

The four-day visit of Soviet President MikhailGorbachov to a new superpower condominium to prominently include Delhi beginning Nov. 18 is not expected to be quite like China, has some indirect implications for India. That the Gorbachov's vist in November 1986. That was a well-or­ implications for India are highly disturbing has less to do chestrated media-hype projecting two new leaders, Rajiv with the Soviet intent, than with the illusions fostered in New Gandhi and Gorbachov, as the key initiators of world peace. Delhiby India's hopelesslyblinkered foreign policy perspec­ This time, however, observers are keeping their ears tuned tive, in which Pakistan is inevitably the touchstone of stra­ to catch-phrases and nuances which indicate a shift in Indo­ tegic assessments. Soviet ties. On Nov. 3, The Hindu. a news daily acclaimed for reli­ Vladivostok and beyond ability, put out a front-page story suggesting that while the Rhetoric aside, the 1986 visit of Gorbachov, which cul­ Indo-Soviet relationship may be strengthened as a bilateral minated in the so-called Delhi Declaration by the two leaders, economic relationship, India has been essentially cut out of had already given premonitions of Moscow's changing atti­ the strategic picture . The Hindu proceeded to point out that tude toward Asia as a whole. In his July 1986 speech at the Indian government-run news agency PTI-TV had been Vladivostok, Gorbachov emphasized the Soviet interest in unable to secure a television interview with the Soviet Pres­ the FarEast and Asia-Pacific. Once again, while speakingat ident and was politely told to pack up by the Soviet Foreign Krasnoyarskrecent ly, Gorbachov underlined that Soviet pol­ Office. More significantly, Izvestia commentator Alexander icy toward Asia, cloaked as it is in proposals on Asian secu­ Bovin stated in a television program on Indo-Soviet relations rity, will be to seek arrangements with China and the United that it was time Soviet media commentators wrote the truth States. about happenings in India, keeping in mind Soviet national By contrast, the Delhi Declaration is a merejamboree of interests. It was an unmistakable reference to the already wo.rds. It is apparent that India, which is trying to play a role charged pre-election atmosphere in India where Gandhi faces in bringing about a peaceful solution to the Kampuchean a puffed-up opposition challenge. conflict, does not figijre except in a subsidiary way in the This little flap is instructive. Moscow has a secure foot in Soviet President's scheme of things in the Asia-Pacific re­ virtually every camp on the Indian political scene, and is gion. most, likely simply, taking precautions to prevent any re­ Moscow's change of attitude toward Beijing became currence of the embarrassment it suffered in 1977 when So­ crystal clear in the months following the 1986 visit of Mr. viet media promotion of Indira Gandhi's electoral victory Gorbachov. During a visit to Delhi at that time, Anatoly proved so disastrously wrong and biased. Dobrynin, the geopolitician par excellence. who has recently The strength of the Gorbachov delegation-including zig-zagged his way back to Gorbachov's close coterie of Foreign Minister Eduard Shevardnadze, Deputy Foreign advisers, told the Indian media in no uncertain terms that the Minister Rogachov, and four others-and the itinerary for Kremlin expects India to better its relations with the People's the visit, which includes three or four sessions with the prime Republic of China through negotiations. Dobrynin brushed minister, makes it clear that the Kremlin has in no way written off press questions which tried to pin down the Soviet re­ off Mr. Gandhi as yet. sponse in case of a hypothetical China-India confrontation; While there is no indication that anything has changed in that China occupies a large chunk of Indian territory and the Indo-Soviet relationship per se, it is clear that the new pointsits nuclear warheadstoward India wereof no apparent strategic policy of the Gorbachov regime, with its priority on concernto Mr. Dobrynin.

56 International EIR November 18, 1988 Instead, he offered the Soviet model of dealing with China. has agreed to provide Pakistan with aU.S. $3.8 billion finan­ "It took us 15 years of negotiations," he said. It is interesting cial support package for cooperation in 12 infrastructural to know from Mr. Dobrynin himself that Moscow and Beijing projects. The agreement is significant because of the size of have been negotiating since 1972 and at the same time keep­ the financial commitment and the fact that Moscow signed ing up a facade of confrontation. For the Indian Foreign this agreement with the late President Zia's handpicked cab­ Office mandarins it was the equivalent of having a bucket of inet and not with any pro-Soviet Pakistani. cold water dumped on their heads. Though India takes pride in the essential pragmatism of its foreign policy, it remains to be seen how India reacts to Afghanistan the pragmatism of others. So far, the Soviet orientation to­ An similar cold shower has been unfolding in the Af­ ward China and the United States has proceeded without ghanistan-Pakistan arena. On the Afghanistan issue, the In­ visible substantive reaction in India. In truth , there is not dian government, both past and present, has taken a narrow, much India can say: Its wounds are largely self-inflicted. The cynical view which, in the event, served Soviet interests quite Soviet security blanket, against Pakistan and China in partic­ well. But since Mr. Gorbachov accused Mr. Brezhnev of ular, that India had enjoyed for the last 17 years, may not be making "a mistake" in sending troops into Afghanistan, the completely withdrawn, but the Soviets have indicated that Indian -position in support of the intervention has become the cold is not that severe. Now India needs a policy, not the shaky to say the least. For the firsttime , in the United Nations illusion of one. on Nov. 4, India joined the mainstream in supporting a Res­ For the Soviets, China can not only open the door to the olution on Afghanistan calling for Soviet troop withdrawal­ Asia-Pacific region, where a number of nations are coming a decision to which Moscow is already committed through up fast economically and where the hope of investment in the the Geneva Accords. development of Siberia is located. China is also important But despite appearances, the key to India's Afghanistan for the Middle East. In recent years China has developed policy is not appeasement of the Soviet Union: It is the dis­ high-level contacts in the Gulf area through arms deals and comfiture of Pakistan. (The same logic, incidentally, holds otherwise. In this respect India has very little to offer. India's good in the case of India's policy toward Kampuchea. The problems with Pakistan over the decades has not endeared it late Indira Gandhi recognized the Heng Sarnrin regime not to most of the Muslim nations in the Middle East, a fact only to express her support to Vietnam, but also to aggravate which has been evident whenever India and Pakistan are the Chinese who were and still are backing the murderous locked in war. In 1971, for instance, when Pakistan struck Pol Pot clique.) India's quest for a coalition government in first, the Arab nations prevailed on India to show restraint. Kabul-as opposed to a mujahideen-led government-is ac­ India's official stance on Afghanistan these last eight years ceptable to both the Soviet Union and the U.S. State Depart­ has further diminished its credibility among the Muslim na­ ment. tions. Prime Minister Rajiv Gandhi's genuine initiatives of Though India claims that a mujahideen-led administra­ recent months toward the Arab nations, so far have had little tion in Kabul will further strengthen Islamic fu ndamentalists impact. and lead to instability in the region, it is evident that a Kabul controlled by the mujahideen will provide Pakistan, who Solid economic ties nurtured and armed them for about a decade , significant In spite of it all, India is and will likely continue to be an leverage in Afghanistan: It is this prospect which is New ally of the Soviet Union. Indo-Soviet trade , a much bally­ Delhi's greatest concern. From the Soviet side it is essential hooed item with the local media, has begun to grow once that the Moscow-run People's Democratic Party of Afghan­ again after having been stagnant for years . The actual trade istan (PDPA), the ruling junta, stay in power in some form turnover between the two nations is likely to reach U.S. $3.9 or manner so that Moscow can keep its options and assets billion in 1988. The aim is to more than double that by the intact for future eventualities. In particular, Moscow would year 1992. like to keep the road between the Soviet border and Kabul According to experts in New Delhi, the trade features open, to allow speedy access to Pakistan if needed. "complementarity" of the two economies, with each filling in the gaps in the other. The composition of trade items has Shifting equations undergone vast changes over the decades. Whilein the 1950s, The convergence of interests �tween the Soviet Union 50-70% of the Soviet exports to India consisted of machinery and India on Afghanistan, however, is no more than that: a and equipment, today it is primary commodities such as crude convergence of views arrived at by very different paths. oil, petroleum products, fertilizers, and non-ferrous metals While the Soviet Union is no doubt unhappy with Pakistan that constitute 80% of Soviet exports to India. The Indians, for delivering a bloody nose to the Kremlin, with the help of in return, send tea, coffee, tobacco, spices, jute, leather U.S.-Chinese-Saudi financing of arms, its view of Pakistan products, and woolen knitwear, as well as some light engi­ is not distorted by paranoia. Only recently, the Soviet Union neering items to Russia.

EIR November 18, 1988 International 57 great soprano alive, starting with' Renata Tebaldi, who ad dressed the Milan conference. Miss Tebaldi reigned supreme over the Verdi repertoire at the Metropolitan Beautyof loweituning Operaof New York, fromthe 1950s until she retiredfro m draws new endorsements the ope ra stage 11 years ago. In October, soprano.Dame Joan Sutherland and her husband, conductorSi r Richard Bonynge, weredelight­

OnSa turday night, N,ov. 5, American television viewers ed to sign the petition . The world-famous Australiancou­ nationwide were treatedto a unique demonstrationof what ple is known forpromoting the beautiful and demanding , a Verdi operawould sound likeif it were sung at the pitch operas of .�e Ital ian "bel canto" era, having revived and the great Italian composer desired. In the course of a recordedma ny seldom-heard worksby Rossini,Donizet­ presidential election campaign broadcast, independent ti , and Bellini from, the early partof the lastcentU[y . candidate Lyndon L8Rouche showed a briefclip fromt las Two American-born Metropolitan Opera sopranos, April's historic Schiller Institute conference in Milan,It­ Leona MitcheU and Grace Bumbry, have also recently ' aly , wherethe world-�nowned bari ton e PieroCa ppuccilli signed the petition. Speakingfrom Milan, Miss Bumbry, sang part of the aria, '�Nel bal�n di tuo sorriso'� from II who' began as a mezzosoprano and now sings dramatic Tro va tore>'first at the tuning of A==432 as intended by sopranoroles, saidthat the"Verdi tuning" should be made

'Verdi,and thenat tod ay' s highe[concertpitch of A == 440. standard not on ly in Italy, but around the world. Louis The ,Itali an bari tone showed how tbe "color" of the Q1iiIico,a baritonefro m Canada whosings thegrea t Verdi music was distort¥at the higher tuning. roles at the MetropolitanOpera, also signed. Maestro CappuccilH is one o! 'the le aders fro m the Among lieder specialists-singers of the songs by operatic world of an initiative to return to the classical Schubert,Beet hoven , Mozart; Schumann, and Brahms­ composers' lower tuningpit ch, abd is backing a bill now Dietrich Fischer-Dieskau, the German baritone, is out­ Senate before the Italian to establisb A = 432, wbich is standing. . Not only has he perform ed and recorded the equivalent to the "physicists' tuning" of a Middle C set to entire Schubert songrepertoire , but is authorof a book on 256 cycles persecond, asthe offiCial tuning fo rk in Italy. Schubert lieder. Fi scher-Dieskau signed the petitionback­ He praised�

to a petition supporting�e Italian legislation, which was Christa Ludwig, hadend orsed theA = 432 campaign; like intfud uced by Senators Mezzapesa and Boggio. Fi scher-Dieskau, these singersalso fiequentlyperform as Theiniti at ive �asnow won the backing ofnear ly every soloists in classical oratorio and opera.

The trade is distorted because the ruble is pegged a notch ceptable to India. Rec:ently India's Energy Ministec Vasant above the U. S. dollar when in reality it is worth no more than Sathe announced that the Soviet Union would provide assis­ U. S. 25¢. But from the Indian viewpoint that does not seem tance to create an additional capacity of 6,000 MW in the to matter, since the payments are made in rupees which power sector during 1990-2000 A.D. otherwise have very few takers in the world market. More Besides the power sector, the Soviets are involved in importantly, India can buy from the Soviet Union using ru­ almost every aspect of India's industrial and technological pees such essential items as MiG fighter aircraft, T-72 tanks, development. The deals, which have been coming in torrents Kilo-class submarines and all sorts of military hardware which since Gorbachov took over Moscow, are beneficialfor both. the West often refuses to sell to India even against hard The Soviets, who find it hard to market their products and currencies. The Indian rupees also. buy a lot of Soviet tech- somewhat backward technologies, are happy to give !hem nology. away at reasonable prices. India, also finding it difficult to It is also significant to note that the Soviet Union is com­ market its products in large volume and eam sufficient for­ ing in in :a big way to help India overcome the dire electrical eign exchange, is happy to buy with rupees what they prob­ , power shortagewhich has stunted agricultural and industrial ably could not have bought even if they had hard currency. growth: The Soviet Union has agreed to provide India with It is an arrangement which is expected to outlast the two nuclear power plants, 1,000 MWe each, at terms ac- geopoliticians.

58 International EIR November 18, 1988 enues of Mexican drug kingpin Rafael Caro Quintero, appar­ ently through a Guadalajara associate in the real estate busi­ ness named Plaza Boneita. Syrian drug mafia Another intimate of Archbishop Chedrawi rujd Checa, Badih Pechalani, was jailed in Guadalajara in April 1987 on tried to buy Lebanon� charges of drug trafficking. Pechalani, the director of the Lebanese Center in that city, is also the local head of the by Jeffrey Steinberg Syrian Popular Party (PPS), and has been linked to Ernesto Fonseca, a major figure in the Mexican branch of the Col­ ombia-based Medellfn drug cartel. Last August, a Syrian-Lebanese branch of the international drug cartel tried to buy the presidency of Lebanon for Syrian A well-timed intervention stooge Suleiman Franjieh with $100 million in hashish and On the eve of the firstround of the Lebanese presidential heroin revenues. The operation, centered in Mexico and di­ vote, Excelsior blew the whistle on the planned buy-off. On rected by a well-known Soviet asset, the Antiochian arch­ Aug. 15, reporter Jesus Rangel published an interview with bishop-of Mexico, Antonio Chedrawi, was apparently short­ Dr. Alfredo Jalife, a prominent member of the Lebanese circuited .when the Mexico City daily Excelsior exposed the Maronite community in Mexico City and an ally of Lebanese plot to pay off Maronite Christian members of the Lebanese Forces chief Dr. Samir Geagea. Jalife, in response to ques­ Parliament to cast their votes for Franjieh in the Aug. 18 tions about Emilio Checa' s flight from Mexican justice and presidential elections. his involvement in money laundering and capital flight, re­ ,According to our special correspondent in Mexico City, vealed the plot to buy offa majority of Maronite members of the Lebanese ambassador to Mexico, Amin el-Khazen, trav­ Parliament to cast their votes for Franjieh, who had just eled to Beirut in early August to negotiate the vote-buying announced his availability for the presidency. effort, apparently on behalf of fugitive Lebanese-Mexican That interview was followed the next day with a half­ real estate baron and Franjieh ally Emilio Checa. Checa es­ page ad signed by Dr. Jalife opposing the Syrian takeover of caped from Mexico in April, using a phony diplomatic pass­ Lebanon by means of the Franjieh candidacy. The treasonous port provided by Ambassador el-Khazen. He was under in­ effort exposed, the Maronite community both inside Lebanon dictment at the time on charges that he defrauded a business and in Mexico, closed ranks behind Geagea and Lebanese partner of$1 00 million in a real estate deal, and there was an Army chief Gen. Michel Aoun. arrest warrant out for him when he fled. Checa is now re­ The attempted buyoff blocked, the Maronite parliamen­ portedly living in Houston at the home of his brother-in-law tarians boycotted the Aug. 18 vote, and a subsequent effort , Anwar Aiza. sponsored by Hafez Assad and U.S. State Department offi­ The $100milli on-plus that Checa stole was to be the cial Richard Murphy, to install a Franjieh puppet, Michel payoff fund for the votes to "win" Franjieh the presidency. Dehar, in the presidency during September in a finaleffort to Cheka was then campaign manager for all of Latin Ameri­ assemble a quorum of parliamentarians to choose Gemayel' s ca-where an estimated 6 million Lebanese live-for the successor. Franjieh candidacy. Ambassador el-Khazen, still in Beirut, apparently decid­ The scheme, which would have consolidated Syria's ab­ ed that it was no longer wise to returnto Mexico, particularly sorption of all of Lebanon under a federated Greater Syria, since his role in Emilio Checa's escape from Mexico was apparently was launched with a series of trips to Mexico by now exposed. According to our sources, the ambassador is Robert Franjieh over the last two years. still in Lebanon, and ex-President Amin Gemayel is now When President Amin Gemayel traveled to Damascus on under de facto house arrest in Beirut, on charges that he stole the eve of the Lebanese elections to consult with Syrian $200 million from the Lebanese Forces just prior to his step­ President Hafez Assad, that was apparently read by the Ched­ ping down as President. mwi-Checa group as the green lightto put their payoff scheme Emilio Checa is still in hiding somewhere near Houston, into fullswing . Texas, his hopes of a triumphal return to a Franjieh-run The pro-Syrian wing of the Maronite community in Mex­ Lebanon dashed, for the time being. ico has long been suspected of playing a pivotal role in the And in a brutal move that suggests that the Lebanese "Middle East connection" in the international drug cartel. mafia in Mexico is not prepared to roll over simply because Emilio Checa, a former business partner of the late Tony the payoff scheme was exposed, the mother of Excelsior Franjieh and Rifaat Assad (brother of Syrian PresidentHafez reporter Jesus Rangel was found dead in October in her home Assad and reputed head of the Syrian mafia), is at the center in Mexico City, her throat slit. The two men apparently of that connection. According to Mexican sources, Checa's responsible for the murder of the 70-year-old woman es­ real estate ventures have been used to launder the dope rev- caped, and their identities remain unknown.

EIR November 18, 1988 International 59 Reportfro m Rio by Lorenzo Carrasco

A social pact with usury done, the agreement with the banks The Brazilian government, the unions, and business leaders have has resulted in the central bank issuing approximately twice as many cruza­ signed a pact "fr eezing inflation" at 20% per month. dos as it otherwise would have. That is what has brought inflation rates up . to 1,000% annually. With greatpomp , the government real wages, massive layoffs of public Thanks to this scheme, the inter­ of President Jose Sarney tried to pres­ employees, tax increases, and, above national creditor banks, like the Citi­ ent the agreement it reached Nov. 3. all, a rapid increase in domestic inter­ bank of Mr. Simonsen and its chief, with labor and business leaders as if it est rates. The government also ex­ John Reed, who chairs the bank advi­ were the start of a "great social pact" pectsto collect $2.5 billion from state sory committee which dictates terms which would finishoff inflation. After governments, one-quarter of their for­ to Brazil, are once again making prof­ it is denuded of the political fantasies eign debts. its this year. Brazil has come up to with which it was packaged, the social Da N6brega and Citibank's Si­ date on its interest payments. Through pact does nothing more than set a limit monsen, himself a former finance the "menu" of debt-for-equity conver­ to inflation: 26.5% in November and minister, will never admit the true sion schemes, the banks are getting 25% in December. cause of this hyperinflationary pro­ real assets for worthless debt which Under this "anti-inflationary" cess: the accords signed with the in­ they had largely written off. strategy, designed by Citibank inter­ ternational bankers. That is why former Finance Min­ national vice president Mario Simon­ First, the government committed ister Dilson Funaro is so sharply crit­ sen, all factors of the real economy­ itself to generating huge trade surplus­ ical of the Sarney government. Speak­ i.e., wages, prices, and public service es to pay interest on the $120 billion ing on the TV program, "Critica e Au­ prices-remain subject to a pre-estab­ foreign debt, at the expense of lower­ tocritica" Nov. 6, Funaro charged that lished inflation rate. On the other hand, ing internal consumption. Excessive his successors in the ministry have set domestic interest rates and payments exportingcreated shortages, and vast­ punctual payment to the international on the foreign debt remain open to ly higher prices of products, especial­ bankers as "the only national priori­ unlimited expansion, extending the ly foodstuffs. The central bank turned ty." He assertedthat hyperinflation was pestilence of usury into all pores of on the printing press to get local cur­ caused by the $55 billion in interest Brazilian society. rency, cruzados, to buy dollars from payments Brazil has sent abroad in th� Although several of the union and Brazilian exporters. More paper mon­ past five years and insisted that the business leaders in the negotiations ey and fewer goods on the local mar­ debt moratorium he declared in Feb­ wanted to discuss, as part of the pact, ket equals growing inflation. ruary 1987 was and is the necessary the foreign debt problem, Finance Second, Brazil's deal with the path. Minister Mailson da N6brega would bankers includes clauses pledging Funaro's statements were blacked brook no questioning of the accord he Brazil to convert foreign debt paper out of Brazil's newspapers, which had signed with Brazil's creditor into cruzados for "investments" in usually record the opinions of every banks. Nor would he permit discus­ Brazil, and clauses permitting the in­ politician. The motive for this became sion of the new constitution's prohi­ ternational bankers to "re-Iend," to evident three days later in the argu­ bition of real interest rates of more anybody in the country, the cruzados ments used by France's Paribas bank than 12% annually. frozen in blocked accounts at the cen­ president Michel Fran�ois Pancet. He The pact is really nothing more tral bank. Since Brazil suspended said that no matter how much Brazil­ than a two-month truce, providing a principal payments on foreign debt in ian authorities groveled, the banks breathing space for the Nov. 15 mu­ 1982, about $25 billion worth of such would never provide the "voluntary" nicipal elections and for the govern­ frozen cruzados hasaccumulated . new lending for which Brazil was sac­ ment to try to create the political con­ The printing press was also turned rificing itself. "The path of normaliz­ ditions for savage austerity. In Janu­ on to create this reserve. The central ing debt payments helps," he said, "but ary , the caged inflation will be. re­ bank recently estimated that between the insecurity of the banks reappears ' leased,, and prices could rise 40% in $7.5 apd $8.5 billion worth of foreign constantly when we verify that many that month. The governmentwill then debt paper was turned into Brazilian Brazilians do not want the debt to be show its true intentions: sharp cuts in equity in 1988. When all is said and paid."

60 International EIR November 18, 1988 Reportfr om Bonn by RainerApel

A word on Kristallnacht remembrance died suddenly. His post as chairman Edgar Bronfman is sabotaging effo rts toward German-Jewish of the German Central Council of Jews was taken over by Heinz Galinski, a reconciliation . Bronfmanite and advocate of confron­ tation with the Bonn government. Galinski and Bronfman are engaged In late October, the German history dia turned it into a big issue interna­ in shuttle diplomacy with the Soviets professor Ernst Nolte learned that pis tionally, by methods that can only be and their puppet regime in East Ger­ invifation to take part in the W olffson called disgusting . Newsweek reporters many, on reopening of relations be­ Lectures at Oxford University, Brit­ desecrated graves in the cemetery, tween Jews and the ruling powers in ain, was canceled. He had planned to taking away flowers to rearrange them Moscow and East Berlin. speak about the fact that Hitler and on the graves of the Waffen-SS sol­ Galinski (who knew of Nach­ Stalin were twins in genocide, that one diers, to create the false impression mann's 1987 agreement with Bonn) who attacks Hitler should do so to Sta­ that "the people here still honor the attacked the West German Parliament lin as well. SS." Pictures of this orchestrated af­ and the government fornot having in­ Among those who had ErnstNolte fair appeared on the cover of News­ vited him to speak on Kristallnacht disinv.ited was Robert Maxwell, a key week, giving Bronfman's WJC and the Remembrance Day, Nov. 9, but had sponsor of the Wolffson Lectures,one Anti-Defamation League of B'nai warm words for East Germany's lead­ of the world's biggest media mag­ B'rith a pretext to attack Reagan for er Erich Honecker for inviting him to nates. Maxwell, born in Czechoslo­ allegedly "honoring" these SS graves. a commemoration at the East German vakia of Jewish origin, is today an in­ The campaign, a top news item in the Parliament. fluential Gorbachovite in the West. Soviet media, caused considerable Yet, of 4,000 Jews still alive in The Oxford decision to disinvite trouble for Reagan, and also for Chan­ East Germany in 1945 , only 380 are Nolte came on the eve of "Kristall­ cellor Helmut Kohl. left today, and of the 15,000Jews who nacht Remembrance Week" (Nov. 7- In late 1987, the head of the Ger­ have emigrated fromthe Soviet Union 14), which featured intense black pro­ man Central Council of Jews, Werner (fleeing anti-Semitic pogroms) this paganda campaigns against West Ger­ Nachmann, contacted the government year, only a few went to East Ger­ many. Prominently involved in this in Bonn. He had opposed the media many, but many to West Germany. In campaign were radical circles with show around Bitburg in 1985, and recent years , many Jews who left Is­ tight East bloc connections, like Ed­ wanted to make sure that this year's rael have settled in West Germany. gar Bronfman's World Jewish Con­ sensitive Kristallnacht Remembrance And in May this year, Isaac Neuman, gress (WJC) and their co-thinkers Week, 50 years after the November a Polish-bom Jew, quit his post as chief among German Jews. 1938 Nazi pogroms against the Ger­ rabbi in East Germany, to protest daily The same circles launched the huge manJews, did not tum into a new chain repressions by the East German polit­ black propaganda campaign against of fabricated incidents against the West ical police, the Stasi. President Reagan's visit to a cemetery German government. Moreover, since Nachmann's in the German town of Bitburg in May An agreement was reached be­ death, the Jewish issue in West Ger­ 1985. In Germany, especially the left­ tween the governmentand Nachmann many has stayed highly controversial wing "Frankfurt Jewish Group," which not to have a big event in the Parlia­ among the Jews themselves. In Octo­ maintains contact with real estate ment in Bonn, but rather at the Syn­ ber, "Nachmannite" Michael Fuerst speculator Ignaz Bubis, a figureof the agogue in Frankfurt, to which Chan­ resigned from all functions in the Ger­ "Frankfurt Jewish mob," mobilized cellorKohl would be invited. This was man Jewish Central Council, and on around the phony issue that a few opposed by Bubis and the left-wing Nov. 3, Fuerst attacked Heinz Galin­ Waffen-SS soldiers who died shOrtly Frankfurt Jewish Group, who called ski for threatening to ruin of all rec­ before the end of World War II were the invitation to Kohl a betrayal of onciliation efforts between Jews and buried at this Bitburg cemetery . "trueJewish interests." Nachmann in­ Germans. Fuerst's remarks show that Until that time, nobody had made sisted on upholding the Kohl invita­ Bronfman and his friends in Moscow an issue of these few graves in this tion . have not yet taken full control of Jew­ cemetery, but all of a sudden the me- But in January 1988, Nachmann ish affairs in West Germany.

EIR November 18, 1988 International 61 tives, and voters' distrust of Goldwater, handed Lyndon Johnson the only easy Democratic presidential victory since FDR. "In your guts you know he's nuts," was a famous anti­ Goldwater bumper sticker of the 1964 election. After Jimmy Carter won, he and Vice President Walter Mondale alienated the Americans by their crackpot deindus­ trialization and malthusian policies, coupled with the Iran fiasco. In 1980 and '84, 26% and 24% of Democrats respec­ How did Dukakis and tively voted for Reagan, the Carter taint carrying over to Mondale. Dukakis did nothing to reverse that pattern of dis­ the Democrats lose? trust, attacking various defense systems and the Strategic Defense Initiative as "pie in the sky." When the polls went by Mel Klenetsky against Dukakis, he tried to shift, but Dukakis riding around in a tank was ludicrous, and the Bush team, having a sense of the anti-liberal pulse of the electorate, made this footage The failure of Michael Dukakis to win the presidency was part of their more effective advertisements. neither a gauge of Bush's popularity nor an indication that Even though Bush lost some of Reagan's Democratic the American public believed the GOP's myth of economic support, he still came in with 48% of the 1984 Reagan Dem­ prosperity. The trade deficitte lls the story as does any simple ocrats, and a substantial 17% of the overall Democratic vote. jaunt through the Midwest, with huge industrial complexes Support for Bush and the GOP defense and foreign policy, boarded up like ghost towns and the continuing plethora of while favored over a liberal Massachusetts governor,was not farm auctions. So the Democrats lost in an election which by deep. Pre-election polls showed 70% were unhappy with all rights belonged to them and no one else. both choices; the voter turnout of 49. 1 % was a 50-year his­ How and why did they lose? Neither the Democrats nor toric low, and the Republicans lost ground in the House, the Republicans have had any answers on the economy, though Senate, and state governorships. Americans voted for Dem­ the Democrats manage to sound more compassionate. The ocratic candidates, because although they were not proposing main exception to this is Lyndon H. LaRouche, who ran for any solutions, they sounded more concerned about closed­ the Democratic nomination and as an independent Demo­ down industries, health care, low-income housing, and edu­ cratic presidential candidate. The effect his television broad­ cation. casts have had on the electorate; the ability of LaRouche and And yet Dukakis succeeded in alienating both the black LaRouche Democrats to articulate a workable economic re­ voters and the white ethnic voters. Bush got 12% of the black construction program; and the demonstration of this by the vote to Reagan's 9% in 1984, but very few blacks turnedout . March victory of LaRouche Democrat Claude Jones for Har­ In Philadelphia, out of a low voter turnout of 49% of the ris County, Texas Democratic Party chairman (the country's voting-age population, there was 'an even lower turnout in second largest electoral district), have shown the way back the black community of registered voters, only 60%. In New to vitality for the otherwise moribund Democratic Party . The York City, with heavy minority representation, voter turnout solid 20-33% of the vote in the latest round of elections for dropped from 2.3 million in 1984 to 1.9 million in 1988. LaRouche Democrats, in spite of underfunded campaigns, In New York State, where Dukakis won 36 of his 112 exclusion or slander by the media, and all-out harassment by electoral votes, only 6.2 million voted, a 46.3% tu rnout, much of the party leadership simply reinforcesthe lesson. below the national average, compared to 7 million in 1984. Gov. Mario Cuomo, Dukakis's campaign co-chairman, av­ Voter distrust of Democrats idly campaigned for Dukakis in the state. The Jewish com­ The Democratic Party has been fissured since FDR's munity was turnedoff by Rev. Jesse Jackson, especially the wartime years, and Americans have had a growing distrust Orthodox Jews who went for Bush in places like Brooklyn's of it, both in foreign and domestic policy. Kennedy (1960) Borough Park. Thus, the Jackson division in the partycreated and Carter (1976) both won very close races, taking office alienation in the black community, and fissures with the thanks to the 1958 recession, Watergate, and most impor­ Jewish voters who feared Jackson's anti-Semitic associa­ tantly, vote fraud. Kennedy beneqted from the ability of tions. Bush's 35% of the Jewish vote was better than the 31% Chicago Mayor Richard Daley and the infamous Cook Coun­ that Reagan got in 1984. ty to vote the dead. (Thousands of absentee ballots were � On top of this , the union vote didn't mean that much. The found flo�ing up the Chicago River). AFL-CIO confederation and its president Lane Kirkland en­ Kennedy did some important things like the Apollo-Moon dorsed Dukakis, limiting Bush to only 42% of the union project and his investment tax program, which reversed the household vote, but he won 49% of the blue-collar vote 1958 recession. His martyred death, these valuable initia- overall. The National Rifle Assocation mobilized the white

62 International EIR November 18, 1988 ethnic communities in central Pennsylvania for Bush, for experimental programs as New York governor, which later example, offsetting the trade union and minority turnouts in became the New Deal. With the formation of the CIO in western Pennsylvania. 1935, FDR brought labor and minorities into the Democratic Party to help crush the party leaders, like James Curley in Brawl expected Boston, New Jersey's Frank Hague, and the Prendergast A meeting of the Democratic Party state chairmen in mid­ machine of Missouri, who tended to resist Roosevelt's Mus­ November is expected to break out into a brawl. The Jesse solini-style corporatist programs. Jackson stalwarts hope to put in their candidate, Ron Brown, The fissures of the party were set aside when Roosevelt as the new chairman of the Democratic National Committee, abandoned the New Deal programs to build up a war ma­ replacing Paul Kirk. Ron Brown was convention chairman chine. The Democratic coalition of that period, unified in for Jackson, a former aide to Sen. Ted Kennedy, and cur­ foreign policy and committed to economic progress, was the rently a lawyer and lobbyist for the National Urban League. kind of party that is currently needed and represented by the Moderates and centrists in the party fear that the Jackson LaRouche Democrats. Even before the war ended, unfortu­ forces might split the party. There is talk of giving Kirk the nately, Roosevelt and Truman had alienated the ethnic East­ chairmanship again to avoid dissension. ern European blue-collar workers by selling out Eastern Eu­ This approach and that of Alvin From, director of the rope at Yalta. The reaction of the Polish-American Congress Democratic Leadership Council (DLC), all miss the boat. and other groups was so strong that Truman, at Potsdam, From correctly analyzes the problems with the Democratic reminded Stalin that free elections in Poland, reported in the Party presidential efforts as stemming from control of the American press, would make it much easier to deal with the primary process by liberal special interests. From says, "We 6 million Poles in the United States. need to have a message that resonates with the American Truman, increasingly unpopular, pulled out of the 1952 people, and we have to findthat message." race after it was clear that he would be badly beaten. The The DLC was formed in 1985 after Mondale's crushing Democratic Party, from 1948 on, was split between the left defeat. Robert Strauss, Virginia's newly elected Sen. Chuck and right New Dealers, characterized by Henry Wallace of Robb, Georgia's Sen. Sam Nunn, and even Tennessee's Al Progressive Citizens of America and the American Labor Gore are the core of the DLC, who are attempting to present Party, and the anti-communist Americans for Democratic themselves as a policy alternativeto the left wing of the party. Action, featuring Hubert Humphrey. Eisenhower, in his Their economic policies are straightforward austerity poli­ campaign of 1952, denounced Yalta and promised to reverse cies, and while pretending they are pro-defense by recogniz­ it, winning much support from Eastern European workers in ing the need for the SDI, they are no better than the anti­ Buffalo, Cleveland, and Chicago. defense liberals, calling for cuts in the SDI budget and re­ The Texas Shivers Democrats broke with Adlai Steven­ stricting the SDI. son to vote for Ike, a foretaste of Democrats for Nixon and The DLC is analogous to the Coalition for a Democratic the Reagan Democrats. FDR's New Deal , followed through Majority, which arose in the wake of the 1972 McGovern by the reform Democratic movement of Eleanor Roosevelt takeover of the Democratic Party, trying to distance itself and Adlai Stevenson in the late 1940s, 1950s, and 1960s, set from the radical McGovernites. McGovernwas trounced by the stage for what became the McGovern takeover of the Nixon, but not before the McGovernites had done a final 1970s and the Carter-Mondale mafia, all of which paved the wreckingjob on the farmer-minority-Iabor alliance that FDR's way for the fissures now being played out by the Jesse Jack­ wartime Democratic Party built. son movement. In 1960 Kennedy won, with the help of the political machines of Chicago and Philadelphia, which the Secrets of the FDR coalition later reformers helped destroy. Philadelphia's Bill Green, for In the past 50 years, FDR's wartime Democratic Party example, in 1960, turned out a record 330,000 voters for was the only one which had the support of labor, minorities, Kennedy. and farmers in both the economic and foreign policy realm. The fissures that Jackson and company represent will Lincoln's Republican Party right up until Teddy Roosevelt, continue to plague the party . It will either split into two was this kind of party, supporting industrial growth and op­ parties, or become impotent, unless the party regroups on the posing England's colonial interests. Teddy Roosevelt wrecked domestic and foreign policy perspectives that the LaRouche this Lincoln-style coalition by siding with Great Britain and Democrats have defined. In 1984 and 1988, LaRouche tried attacking industry. to present these perspectives to the national conventions of FDR's building of the Democratic Party was designed to the Democratic Party in San Francisco and Atlanta, but was pick up on the old Republican Party that Teddy Roosevelt excluded. Reminiscent of FDR' s 1941-44 Democratic Party helped destroy. FDR, however, was trying to implement and Lincoln's Republican Party, the approach of the La­ fascist economic policies, just as the Trilateral Commission Rouche Democrats, is the only one capable of saving the did with Jimmy Carter. The Russell Sage Foundation ran his Democratic Party.

EIR November 18, 1988 International 63 �TIillNational

Anti-Dukakis vote elects George Bush

by Kathleen Klenetsky

The American people dealt a resounding defeat to the most Dukakis came out of the Democratic convention in late corruptfac tions of the U. S . Establishment Nov. 8, when they July with a 17 -point lead over Bush, but that evaporated when overwhelmingly rejected Democrat Michael Dukakis' s bid the question of whether Dukakis was mentally capable of to become President. holding the highest office in the land broke into the interna­ Although the voter turnout was the lowest in 40 years, tional media in early August. Dukakis aides bitterly blamed reflecting the general lack of enthusiasm for either the Re­ the flapover their candidate's mental fitness forthe paralysis publican or Democratic standard bearer, Bush's margin of which gripped him in August, and from which he rallied, victory was significant: He won 40 states to Dukakis's 10, barely, only at the end of the race. Even after thepress began garnering 426 electoral votes to his opponent's 112. His screaming that the mental health issue was a "LaRouche dirty popular vote margin was 54-46, and he not only swept the trick," the charge stuck; it was clear, from Dukakis's behav­ South and Mountain states, but also took several of the major ior, that he was unstable. industrial heartlandstat es, including Pennsylvania and Ohio, That expose, coupled with the voters' understanding that as well as hotly contested California. Dukakis was the reincarnation of the hated Jimmy Carter, Now that the menace represented by Dukakis and his and with the Republicans' hammering on his no-defense pol­ Harvard handlers has been put back in its box, the next major icies, ensured Dukakis's defeat. Independent Democratic battle in the United States will be over the composition and candidate Lyndon LaRouche's nationally televised charge, course of the incoming Bush administration. While Bush is three days before the election, that Dukakis was a hew Mus­ rooted in the liberal wing of the Eastern Establishment, he solini, helped drive the last nail into the Duke's political has exhibited sufficient openness on certain vital issues­ coffin. notably the Soviet threat-to indicate his susceptibility to being moved in the right direction by the right political con­ Which way will Bush go? ditions. The principal danger is that Bush will be so over­ Throughout the long primary season and the general elec­ whelmed by one crisis after another (a financial crash fol­ tion period, polls consistently showed that Americans were lowed by some Soviet provocation is a likely scenario), that dissatisfied with both candidates, and were dismayed that he will be stampeded into panic reactions (draconian budget neither offered substantive solutions to the range of crises­ cuts, or major concessions to the Soviets on the SDI, for AIDS, the state of the economy, the Soviet threat-now example) that will only make matters much worse. facing the United States and the world. The responses to LaRouche's election broadcasts on space colonization, the No to the new Mussolini wOrldwidefood crisis, the Soviet threat, and the potential for Despite all the talk about a last-minute Democratic surge German reunification showed how hungry the American and a major upset, Dukakis never really recovered from the electorate is for leadership and vision. devastating blow delivered him shortly after his nomination Bush's failure to keep the Reagan Democrats (the blue­ by this news service's expose of his mental instability. collar and ethnic voters who abandoned Carter and Mondale

64 National EIR November 18, 1988 in the last two presidential elections) solidly in his column, The Center for Strategic and International Studies, home testifies to the factthat in the real world, at least, the Reagan base to several Bush strategic policy advisers, issued a report Recovery doesn't exist. If Bush cannot deliver a sound eco­ just a few days before the elections urging the next President nomic policy, one which emphasizes real productive growth not to deploy the sm, and to begin a partial withdrawal of over speculation on the one hand, and austerity on the othc5r, American troops from WesternEurope and South Korea. he can kiss the U.S. economy goodbye, and resign himself to oocoming the new HerbertHoover. Bush: caution on Soviets A fighthas already broken out in American policymaking But Bush himself is maintaining a very cautious position circles over the personnel and policies of the new administra­ vis-a-vis the Soviets. In an interview in the Nov. 8 Le Figaro, tion; the outcome of this fightwill go a long way to determin­ he warned against taking Gorbachov's alleged "reforms" at ing the fate of the world over the coming months. President­ face value and pouring money into the Soviet economy. "We elect Bush's announcement the day after the election that he want to put Gorbachov in a position [where] he'll be forced has chosen James Baker III as his Secretary of State, while to make a real choice and to cut defense spending. If we give not unexpected, was not a particularly auspicious start,given Gorbachov the money without specifying how he should Baker's allegiance to the Harriman wing of the Establish­ spend it, we're offering him the chance of ducking that basic ment. Nor are some of the individuals mooted as contenders question." Asked if the West should help Gorbachov, Bush for top Cabinet posts, e.g., Brent Scowcroft of Kissinger responded: "It seems to me we don't know enough about the Associates. Although Scowcroft has recently cautioned the dynamics of the Soviet system to know how to help Gorba­ West against being seduced by Gorbachov's "reforms" into chov. Since we'renot certain we really understand the mech­ letting down its guard, he also strongly favors scaling back anism of change under way in the Soviet Union, we should the Sm, the one military system without which the defense stick to the guiding principle of a cautious foreign policy, of the West cannot be ensured. give priority to satisfying our own interests ." The powerful groupings which hope to steer Bush down Then, at his first press conference as President-elect, · the road of accommodating Moscow and foisting the Inter­ Bush said he wasn't interested in holding a summit with national Monetary Fund's austerity conditions on the U.S. Gorbachov just for the sake of having a meeting, but only if economy, are working to createthe political climate in which there were something substantive to discuss. thiscan be accomplished. Two days later, Bush sent another signal to the Kremlin, No sooner were the results in, than the President-elect when he met in Washington with leaders of the Afghan resis­ beganto be inundated with rotten advice. Sen. Alan Simpson tance; according to his spokesman, Stephen Hart, the Presi­ (R-Wyo.) went on national TV within hours after Bush was dent-elect "reiterated his position that despite the recent So­ declared the victor, to discuss what his "good friend" Bush viet military escalation, he expected the Soviets to honor the should do: Raise taxes, and listen to the fascist National Feb. IS, 1989, deadline for total troop withdrawal. And he Economic Commission (NEC), whose co-chairmen are on emphasized that failure to do so would have a negative effect record calling for deep cuts in defense and entitlement pro­ on U.S.-Soviet relations." grams , like Social Security. Russia has reacted to the Bush victory with some schiz­ That advice was echoed by Senate Minority Leader Rob­ ophrenia. Radio Moscow is calling it both a vote for more ertDole (R-Ka n.), by the NEC, and by a host ofthink -tankers U.S.-Soviet arms-control deals, and a reflection of Ameri­ and media pundits. The "advice" is rapidly escalating into cans' support for a strong defense, and the SDI. threats and blackmail. Washington Post economics analyst HobartRowen warned Bush Nov. 10 that unless Bush heeds Bush's mandate the advice of the NEC-which is scheduled to hold a three­ Even before the final results were in, press pundits began day public bash in Washington beginning Nov. IS-he will to proclaim that Bush has no real mandate, and to gleefully face a financialblowout. Unless Bush "wants to risk a back­ predictthat he will have a tough time dealing with a Congress lash from financialmarke ts," he will have to accept the NEC's under solid Democratic control. This is being echoed by recommendations. Bush "needs the NEC , just as Dukakis many leading Democrats, and some, such as New Jersey Sen. would have, to help prepare public opinion for the belt­ Bill Bradley, are publicly declaring that they won't cooperate tightening policy changes that lie ahead." Former Carter with the new President. administration official C. Fred Bergsten issued a report the Bush can forge his own bipartisan mandate, but to do so, same day under the auspices of his Washington think-tank, he will have to ignore the advice pouring out of various saying basically the same thing. Establishment think-tanks, and give the kind of national and Besides the NEC, which is to hand the President-elect a international. leadership that has been lacking for too long. package of recommendations within the next two months, a The acute strategic and economic crisesdemand a break with host of other groups, like the American Agenda, are slated current policies, and unless Bush is prepared to do this, his to come out soon with reports along the same austerity lines. presidency will fail.

EUR November 18, 1988 National 65 International Intelligence

closed," he stated Nov . 2. One day earlier, on Nov. 4, Soviet Dep­ Pravda doesn't like The speculation in Bangkok is that the uty Foreign Minister Aleksandr Bessmert­ Thatcher's Europe policy Reagan administration intentionally leaked nykb had told a news conference that Mos­ classifieddocuments to the Post to influence cow still expects to meet the Feb. 15 dead­ Thailand's foreign policy, although a U.S. line for total pullout of its troops . "It is pos­ British Prime Minister Margaret Thatcher official told that Bangkok Post that this is sible that Feb. 15 may not be the final date" has been attacked for opposing the "Europe untrue. for all Soviet troops to be out of the country, 1992" corporativist plan from a most unu­ The allegations of embezzlement ofU.S. the Soviet official said. But on the day Vo­ sual quarter: Pravda, the newspaper of the aid to Khmer fighters were probably aimed rontsov spoke, another Soviet diplomat in Soviet Communist Party . In a high-profile todiscredit ArmyCommander- in-Chief Gen. Kabul was quoted by the Washington Post Nov. 8 article praising moves toward crea­ Chavalit Yongchaiyudh, according to Prime saying that Moscow is reconsidering its tion of a European Currency Unit in the con­ Minister Chatichai Choonhavan' s secre­ commitmentto have all its troops out of the text of steps toward "European integration," tary , Panya Singhsakda. An Army source country by Feb. 15. commentator Lev Strzhizhovsky criticizes also commented on the fact that Chavalit is Pakistani Foreign Minister Sahabzada Britain for standing in the way of closer being seen as the target of the seemingly Yaqub Khan called the announcement of a monetary unity, on which closer political well-planned leak, "The Americans may not suspension of the Soviet troop withdrawal integration depends. be happy that the Army commander-in-chief "a matter of grave concern," raising serious He says: "Mrs . Thatcher's wordsare of­ subscribes to the thought that Thailand doubts about Soviet pledges. Noting the re­ ten quoted. That is, 'there can and must not should adjust its relations with superpowers cent deployment of new warplanes and SS- be a single European state .' ... Britain by distancing itself from the United States." 1 Scud missiles in Afghanistan and a Soviet joined the European Community later than There is also speculation in the Thai press statement that soldiers completing terms of others , and still avoids taking responsibility that the leaks are designed to end U. S. fund­ duty there were being replaced, he said that on itself for the monetary policy of the EC . ing of the anti-communist resistance. the "developments are a violation of the let­ Mrs. Thatcher gives preference to internal The story was first leaked to Nayan ter and spirit of the Geneva agreements ." He policies rather than international coopera­ Chanda, Washington correspondent of the said this was also incompatible· with "the tion." Far EasternEconomic Review, which mag­ understanding that the only military activi­ Strzhizhovsky writes in an exasperated azine has been on a "democratic" crusade ties to be undertaken by Soviet forces would tone: "Does one have to prove that the future against the Thai, Malaysian, and Singapore be in defense of their withdrawing troops. " of Great Britain is unthinkable outside the governments. European home and that the U . K. like other states must be as interested as they are in stability and in the long-term interests of the Russians accuse U.S., common market?" Australia to test Pakistan of 'fra ud' everybody fo r AIDS - Bangkok warns of harm Soviet ambassador to Kabul and First Dep­ uty Foreign MinisterYuli Vorontsovblamed A whole continent is to be tested for AIDS: to U. S.-Thai relations the suspension of Soviet troop withdrawals Australia. from Afghanistan on massive arms ship­ The plan has beendrawn up, and is being The Oct. 30 "leak" by the Washington Post ments to Afghan resistance fighters by the closely studied by both the federal and local charging that Thai military officers were si­ United States and Pakistan. governments for approval. If this plan is phoning off U.S. funds designated for the "We are facing fraud on the part of the passed, foreign visitors will also be tested, anti-communist Cambodian resistance-for United States and Pakistan ....Those who and will be denied entry if they test positive. which no substantiation has been forthcom­ said they are interested in peace in Afghan­ No specificpublic health measures have been ing-may affect relations between the two istan started mass deliveries of modem outlined. The testing is designed simply to countries, according to Parliament Presi­ weapons to the detachments of the opposi­ determinethe extentof the infection's spread. dent Ukrit Monghonnawin. tion ....This is a very serious blow to the To test 16.3 million Australians will cost "Thailand and the U.S. have a friendly Geneva accords which almost torpedoed an estimated $150 million. About 1,000 relationship. Saying anything to affect the them." people are known to have contracted AIDS other shoUld be very carefully considered. He continued, "The time is ripe for a in Australia to date. Half of them have died. Since we are cooperating to keep peace in fresh international discussion of all aspects Meanwhile, the West German federal the region, such matters affecting the exe­ of the situation in Afghanistan and around court appears to be liberalizing one of the cution of such programs should not be dis- it ." only public health measuresadopted against

66 National ElK November 18, 1988 Briefly

• PRINCE CHARLES, visiting Paris Nov. 4, announced the creation of a French-British scholarship in S AID by most nations: criminal penalties Soviet sources, but is ridiculously incom­ memory of European fe deralist Jean for those who knowingly spreadthe disease. petent, the Sunday Times of London's chief Monnet, the founder of the Council A homosexual from the United States, investigative reporter, Barrie Penrose, of Europe. living in Bavaria, was accused of having charged Nov. 6. homosexual intercourse without informing Of the 17 men whose names were sup­ • THE SOVIETS have been said his partner of his AIDS infection. A Nurem­ plied to the British governmentas "Nazi war ' for months to be preparing to admit berg court sentenced him to two years in criminals" resident in Britain, Penrose re­ their responsibility for the 1943 mas­ prison. ports , five are dead, and one of them died in sacre of Polish officers at Katyn. But Now, the Supreme Federal Court has London 16 years ago. Others are almost cer­ the Nov. 6 edition of Izvestia repeat­ ruledthat while the fellow was in fact guilty , tainly innocent of the accusations. ed the standard Soviet line, that the the sentence was too harsh, and returned the This "has surprised Whitehall ....The Nazis were responsible for the mas­ case for new sentencing to Nuremberg. Home Office says that in some cases, there sacre. is no evidence to link the men named with war crimes" at .all . • SYRIA'S defense minister, Maj. China says U. S. is Informed of the deaths of the listed men, Gen. Mustafa Tlas, when he arrived blocking reunification Israeli "Nazi-hunter" Ephraim Zuroff com­ at Moscow Airport on Oct. 28. was mented, "In the circumstances, it was un­ receivedby the entire Soviet military fortunate , because some of these people leadership. The unannounced visit Mainland China's Weekly Outlook maga­ would have made our case much easier." In came two weeks aftera new Soviet­ zine charged in its Nov. 4 issue that the another case, Zuroff claimed that individu­ Syrian deal for the deliveryof SU-24 United States had broken its pledge not to als who fought alongside the Germans in the jet fighter-bomberswas made public. obstruct the reunification of Taiwan with Latvian SS Legion against the Russians are mainland China, the U.S. Army 's Stars and legally liable to be deported or stripped of .MARGARET THATCHER Stripes reported Nov. 7. citizenship in the United States, and he urged The Chinese article, written by Zhang consulted Pope John Paul II for ad­ that the same policy be applied in Britain. Jingxu of the Chinese Academy of Social vice before her trip to Poland. The But British historian Hugh Taylor has Sciences, said that the United States had told Pope sent a message to the British pointed out that the U.S. legislation specif­ Taiwan not to negotiate with Beijing over prime minister that he supported po­ ically exempted the Latvian Legion. Said reunification, and warnedTaipei about sud­ litical and economic reform , and in­ Taylor, "The act says very clearly that the denly "opening its door to the mainland." creasing freedom for the Poles. Baltic Legions are not considered to be a "'The Americans have repeatedly told the movement hostile to the United States. The SIKH Taiwan authorities to guard against the united • terrorists killed more than Wiesenthal Center's lack of professional re­ front work of the Chinese Communist Party 50 people Nov. 4 in three separate search is disappointing and casts a shadow concerning the relaxation of tensions across incidents in the Indian state of Punjab on how good their archival material is." the Taiwan straits ," the article said. It ac­ in 24 hours, the bloodiest single day cused the United States of increasing polit­ One Latvian Legion survivornow living yet, police said. ical, military, and economic ties with Tai­ in Britain, 76-year-old Fricis Kurseitis, IGNACIO CAPEGSAN, wan "in an attempt to raise obstaCles to stressed that he and many others joined the • guer­ China's reunification." Legion to fight the Russians, who had oc­ rilla leader ranked number three in "There has been no decrease in U. S. cupied the Baltic states before the Germans the Philippine communist hierarchy, arms sales to Taiwan since the Reagan took over. He said, "I was an army corporal was captured Nov. 5. Philippine Brig. administration came into office eight years and no war criminal." He and other Latvian Gen. Alexander Aguirre said Cap­ Legion veterans charged that they are on the ago ," Weekly Outlook charged. egsan was carryinga passport with an Wiesenthal list "because they are anti-com­ assumed name and was bound for the munist and active in the Latvian community United States. Anti-Nazi 'evidence' in Britain." Ironically, even the Soviets' Novosti • THE KHMER ROUGE, mili­ fo und incompetent press agency in Moscow told the Sunday tarily the most powerfulfaction in the Times, "During the fascist occupation, there Kampuchean resistance, have unex­ Information supplied to the British govern­ was no post of finance minister of Latvia. pectedlyagreed to join Prince Sihan­ ment on "former Nazis living in Britain" by And there was no post of labor minister of ouk in peace talks with the Phnom the Simon Wiesenthal Center and a top Is­ Latvia. " Yet, two of the accused are charged Penh government. raeli "Nazi-hunter," is not only based on with having held these two posts !

EIR November 18, 1988 National 67 Will the United States still be capable of a strong defe�se? by WilliamJones

At a conference held by the Center for Strategic and Inter­ "We're not going to get much money out of that [burden­ national Studies in Washington, D.C. on Nov. 1-2, defense sharing] . We could do terrible damage. " analysts debated the issue of which area of the U.S. defense establishment must be sacrificed on the altar of "budget def­ Where to cut? icit reduction." Three years ago, the CSIS issued a rePort But there was no one among the speakers who demanded called "U.S. Conventional Force Structure at the Cross­ a national industrial recovery policy that would make eco­ roads," which argued that the next administration would have nomic "triage" choices necessary . Instead, the main agenda to make very substantial reductions in overall U.S. military item was how to cut the budget, on the assumption that "we capability-by 25-35%. Now, the CSIS spokesmen argued, will be living with zero real growth for the next four to five the time has come when those cuts must be made. years ," as William Kaufmann, professor at Harvard Univer­ Still, the atmosphere of the conference was far from the sity's JFK School of Government, expressed it. Kaufmann euphoria which characterized defense discussions in the im­ called for cutting "something on the order of $475 billion mediate aftermath of the signing of the INF treaty. The prob­ over the five-year period, in order to come down from the lems created by that treaty , and particularly the effects of the level that would cover what's in the pipeline." Kaufmann, treaty on NATO defense posture, created an undertone of who shared a forumwith former Undersecretary of Defense concernthat was previously lacking. The success of the Gor­ Fred Ikle, Brent Scowcroft, General Jones, and former CIA bachov public relations spiel on the Europeans, combined officer Lewis Sorley, presented three budget-cutting scenar­ with the fear generated by the earlier U.S. rush to grab the ios. Gorbachov "olive branch," finally created concern among Kaufmann stressed that there could be no talk of a substi­ some defense analysts, that the survival ofthe alliance is now tute for U.S. leadership in NATO "in at least the coming in danger. decade." "The notion that some kind of collective. security arrangement led by the Federal Republic of Germany and , Ally-bashing' Japan is, I think, totally unrealistic. We not only represent Despite the fact that all of the speakers accepted the an aggregate of power that there is no substitute for, but I premise of the deficitreduction argument, some pointed out think we have to recognize that we have a very heavy burden with consternation that these cuts were being mandated at a of responsibility, and a good share of that responsibility is in time when NATO is faced with its greatest threat in 40 years. the military realm, and I don't think we can easily shirk it." Speakers voiced concernover the fact that the Europeans had Kaufmann's first budget reduction option involved pro­ been hard hit by all the "ally-bashing" going on in the Con­ tecting the program of modernization and maintaining -a "one­ gress and the administration, and that prime consideration contingency strategy" for the conventional forces, namely, must be taken to creating better rapport with our allies. in Central Europe. In this scenario, the force-structure would Gen. David Jones, former chairman of the Joint Chiefs be focused exclusively on Central Europe and on sea-lane Staff under President Carter, commented, "I'm leery about protection to Antwerp, Rotterdam and into the Mediterra­ all the ally-bashing going on. We probably won't achieve a nean. This, he said, would eliminate substantial commit­ great deal more in their defense effort, but we're likely to ments to north Norway, the Persian Gulf, South Korea, and exacerbate the difficulties we already have with our allies. Panama. Personally, he considered this a bad alternative, but That doesn't mean we shouldn't work at it, but I think it's a said that it would permit a savings of $335 billion. simplistic approach for people to say burden-sharing will Kaufmann's second alternative would be to attempt to solve many of our problems. The result might bethey take a protect the modernization program and the strategic nuclear higher percentage of the burden because we do less. The operating and support clause. This would imply, however, backlash may be, we pull things out of there, but they don't cutting the other operating and support costs. In order to get do more." $337 billion of savings, a 56% cut in operating arid support Lt. Gen. Brent Scowcroft, national security adviser to costs would be required, creating a "hollow Army," units President-elect George Bush, expressed his agreement: which were under-strength, or pushing active units into the

68 National EIR November 18, 1988 National Guard and the Reserve. Scowcroft wamed against the idea that armscontrol would The alternative which Kaufmann thought most workable contribute significantly to saving money, an illusion which was one which protected that part of the modernization pro­ he described as "one of the routine expectations on Capitol gram that is devoted to buying the current generation of Hill." Even if, argued Scowcroft, we were able to negotiate weapons, but "holding, not necessarily canceling, a whoie an arms agreement in conventional weapons, which comprise series of programs, very expensive programs" in research, 85% of thedefense budget, including manpower, "one does development, testing, and evaluation. Kaufmann claimed, not come up with any eariy significant cuts in NATO." "We are moving into a new generation of weapons very Fred Ikle, former Undersecretary ofDefense , was the co­ rapidly, without having fully prototyped and tested and found author, with AlbertWohlstetter, of the Discriminate Deter­ out what works , and at what cost." Kaufmann proposed put­ rence report by the President's Commission on Integrated ting those on hold during the next four to five years, "in order to see what really is worth deploying." Intelligence analyst Lewis Sorley described what he called the "strategist's dilemma." On the one hand, the strategist ifthe Bushad ministration doesn't has to prepare against unlikely events, which, if they tran­ move quickly to revive the spired, would be cataclysmic in their impact, such as a stra­ tegic nuclear war. On the other hand, he has to prepare for industrial economy, the budget events that are much more likely, but far less cataclysmic in cutters are all set to implement 25- their impact. 35 % cuts in dlifense. The result: a Sorley explained how the military forces are facing im­ minent manpower constraints. "The pool of 18-to-23-year­ "hollow Army. " And yet many olds from whom we expect to draw our entry level service among the Pentagon's planners people," he said, "is going to shrink fairly substantially over have accepted theJlawed theperiod of the next several years ....Recent analyses that I have looked at say that between 1984 and 1996, for exam­ assumptions q{"deficit reduction" ple, that pool is going to diminish by 22%, not just in num­ economics. bers, but in terms of those within the pool who will meet the current standards for acquisition by the Armed Forces." He wamed that we are rapidly approaching a situation where we will be faced with a "hollow Army," both in terms of quantity Long-Term Strategy, issued in January 1988, which pro­ and quality. He suggested that that problem could be "re­ posed scaling back U.S. military involvement in Western solved" by lowering the criteria required for the forces and Europe and Asia for the sake of "budgetary considerations." for the officer corps. He said that this was done during the At the CSIS conference, Ikle talked tough, but put forward Vietnam War era, but it led to an overall deterioration in the radical budget cut proposals. He said that the worst danger quality of soldiers and officers. that might face the United States would be a large-scale Gen. David Jones pointed out that the first hundred days conventional war with the Soviet Union, but that such a of the new administration will be most important in setting development would require the emergence of a "Stalin II, the pace for the defense program. He recommended making hell-bent on military expansion." To meet this danger, Ikle cuts affecting force structure and procurement, not readiness. said, "we need to have our R&D development done, because Complaining that there is too much overhead in the Defense that takes 10 years." However, since we are facing zero Department, Jones tried to make an argument that increases growth in military spending, we should take the major cuts in productivity could lead to a "more efficient, effective mil­ "from readiness and force size." Ikle agreed that we would itaryfive years from now," where"we can get by with 300,000 end up with a "hollow Army ," but "we have to hollow it out fewer people." in a way that it can be rapidly refilled. And by rapid, I mean two to four years, not the 10 days of our NATO planning." The Soviet adversary All well and good, if the "Stalin II" gave us two to four Gen . Brent Scowcroft warned against any attempt to years . What happens, however, if a decision were taken by change the strategy of nuclear deterrence on the assumption the Gorbachov Politburo to make a move into Western Eu­ that "the Soviet Union is a different sort of beast than it has rope or elsewhere? been up till now." "I think that the record is not in on that The deficitreduction perspective also affected the various point," said Scowcroft, "and that to change this fundamental speakers' po�itions on the question of early deployment of strategy that we've had in anticipation that we may have a the Strategic Defense Initiative, with a number of the speak­ different Soviet Union in the present time, and therefore can ers' like General Jones, recommending that we "keep SOl make those kinds of savings, seems highly risky." where it is."

EIR November 18, 1988 National 69 National News

whom will get free needles and counseling one master fund account was $384 million and the other 200jus t counseling. in the red. The New York City Council has con­ On Nov. 1, it was revealed that the state Living standards in demned the project, and on Oct. 27 the had been running a $200 million overdraft Council's Minority Caucus said, "It is be­ at the Bank of Boston to cover the Dukakis ten-year decline yond all human reason and common sense deficit. Now, release of the accounts by the Despite the fact that more women are work­ for the city to hand out needles to drug ad­ Treasury shows that the overdraft reached ing outside the home, the purchasing power dicts at a time when our police officers and $383 million during October. Republican of 40% of American families has declined our citizens have become casualties in the representatives want the state Inspector over the last 10 years, according to a study drug war." HarlemCouncilman Hilton Clark General and the Banking Commission to in­ released by the Economic Policy Institute told the press, "When the first needle is giv­ vestigate irregularities. Nov . 5. en out by Stephen Joseph, he ought to be "The Dukakis campaign, if it has done The number ofworking wives increased indicted for murder. This is an unconscion­ nothing else, has provided an opportunity to from 55.4% in 1979 to 66. 1 % in 1986, and able, criminal act. It's genocide pure and learn about the peculiarities of the Com­ wives' earnings, adjusted for inflation, in­ simple." monwealth, where borrowing fromyour own creased 12. 1 % over the same time period. City Police Commissioner Benjamin pension fund is prudence, and kited checks Yet, husbands' adjusted earnings dropped Wardattacked the program because"it sends are a common understanding," the Wall from $23,204 in 1979 to $22,240 in 1986. out the wrong message." The first location Street Journal wrote Nov. 3. While adjusted income for families in­ for the giveaway clinic was overruled by creased 7.3%, two out of five families did Koch because it provoked a wave of public not keep up with inflation. outrage becauseit was located within a block The EPI study claimed that young adults of an elementary school . who do not finish college are doing "sub­ Joseph nervously said, "If we get LaRouche aired two stantially worse" than those of the same age knockedout on this thing now, afterall we've a decade ago; that 1.5 million more unat­ gone through, nobody will ever try it in oth­ pre-election broadcasts tached young people have "returned to the er cities." Presidential candidate Lyndon LaRouche nest" because of low wages than did so a aired two nationally televised prime time decadeago; and that U.S. families have been half-hour paid political broadcasts on Oct. under greater economic pressure over the 31 and Nov. 5 leading up to the Nov. 8 last decade than at any time in the post­ election. World War II era. Duke returns to Mass. The Oct. 31 spot, entitled "The Winter "Without new economic policies, it is of Our Discontent," which aired on NBC, clear that families can no longer count on budget disaster had as its theme that the post-World War II steadily increasing incomes and that the next A major fiscalcrisis awaits Michael Dukakis era was coming to an end. The first section generations cannot expectto live better than back in Massachusetts after the presidential of the show dealt with "possibly the deepest their parents," said Jeff Faux, president of election. depression"in our history. LaRouchewarned the liberal institute. State Rep. Richard Voke, chairman of against those who "are proposing to let the the House Ways and Means Committee, International Monetary Fund increase your called for a full probe into the state's fiscal taxes, dictate our federal , state, and local crisis Nov. 3, amid reports that the state's budgets, reduce the incomes of our people, "master fund" account was overdrawn by and forbid new investments in agriculture almost $400 million on Sept. 30. A Demo­ and industry." In contrast, he outlined his NY C gives free needles crat allied with Dukakis, Voke scheduled an policy to rebuild farms, industry, and infra­ oversight hearing of his committee for Nov. structure, which, with new technologies, to drug addicts 10 to force Dukakis's underlings to provide "can increase our average incomes by 50% Despite enormous opposition from the pub­ answers about the financial debacle. "There before the end of this century. " lic and several elected officials, New York is a clear need for the Legislature to obtain The second part of the show analyzed City Mayor Ed Koch and Health Commis­ an accurate report from the administration the serious threat the West faces from Mos­ sioner Stephen Joseph startedsupplying IV regarding the Commonwealth's fiscal well­ cow and the significanceof the recent shake­ drug users with free needles on Nov. 7. being," he said. ups in the Soviet leadership. LaRouche Organized as a "study" to see if free Massachusetts State Treasurer Crane comparedthe currentpopular analysis of the needle distribution will stop the sharing of admitted that the account at the Bank of Soviets by the State Department and Soviet needles and slow the spread of the AIDS Boston was overdrawn by at least $27 1 mil­ experts to "little girls playing with dolls. " virusamong the city's addict population, the lion-not $194 million, as reported by his The third and final section of the show program will enroll 400 addicts, 200 of deputy, Patrick Sullivan. In late September, featured LaRouche's proposal to provide the

70 National EIR November 18, 1988 Briefly

Soviets with "a safe route of escape" from trition Week newsletter, the circular of the • FREDERICK DAVIES, the as­ their economic crisis and food shortages, a Nutrition Institute. trologer of Princess Margaret and proposal to reunify Germany. The newsletter warns that "another Nancy and Ronald Reagan , has died The Nov. 5 broadcast aired on the CBS droughtor near-droughtduring the next three of AIDS. Casper Baker Gary , his network and was entitled "The Third Trial years could bring actual food shortages. The homosexual lover , criticized the Rea­ of Socrates." The show outlined who was U.S. then would have to choose between gans as an "ungrateful lot" because behind the attacks against LaRouche, and supplying domestic needs to prevent major they did not send condolences. featured guest appearances by a number of food price increases or supplying farm ex­ prominent individuals, each of whom high­ ports to maintain the U.S. share of world • PENTAGON FRAUD indict­ lighted the importance of LaRouche's work markets ." ments have been delayed, and "gov­ in the fieldsof defense and intelligence, eco­ The newsletter adds, "1989 seems to be ernment investigators say they have nomics, music, and the fight against AIDS. a good time to go on a diet. Consumers beensurprised that few suspects have should plan to eat less meat and poultry." been willing to consider plea agree­ The U . S. Department of Agriculturehas ments with the Justice Department, consistently maintained that the drought will even after they were confrontedwith have a negligible impact on foodprices and evidence of possible wrongdoing," Voters back nuclear, supply. reported the Nov. 6New York Times. "We're not getting as many nibbles infrastructure aid as we expected. From what I hear, Voters in the Nov. 8 election backed nuclear there is disappointment," one DoJ of­ energy and spending for infrastructure, even ficial is quoted. in states carried by Michael Dukakis. Court rules murder Massachusetts voters rejected an effort • GOES-4, an eight-year-old by anti-nuclear activists to pass a referen­ is patient's 'right' weather satellite, was retired from the dum that would have closed the Pilgrim and AU. S. District Court in Rhode Island ruled National Oceanic and Atmospheric Yankee Rowe nuclear power plants. Re­ on Oct. 17 that a family who asked to starve Administration's fleeton Nov. 8. Us­ peatedenergy brownouts that rolledthrough to death a 49-year-old highly disabled wom­ ing infrared and visible light instru­ thestate throughout theyear due to electrical an, could do so because the patient, Marcia ments to track weather patterns and power shortages likely spurred the pro-nu­ Gray , had a federal constitutional right to storm formations, GOES-4 had clear vote. control medicaldecisions affectingher body . warned of the approach of hurricane The anti-nuclear Dukakis had repeated­ Thomas Romeo, director of Rhode Is­ Iwa, which hit Hawaii in November ly suggested that hydropower be purchased land's Department of Mental Health, Retar­ 1982. The failure to replace GOES-4 from Canada. dation, and Hospitals (MHRH), was sued leaves NOAA with six satellites, and Nebraska voters also rejected an anti­ by the family afterref using to starve Marcia just one to cover both the Pacific and nuclear effort and reaffirmedthe state's par­ Gray , 49 , over two years ago. Atlantic coasts of the United States. ticipation in a five-state group responsible Within days of the court decision, both for dealing with nuclear wastedisposal . They RhodeIsland Governor Edward DePreteand • A CALIFORNIA anti-AIDS ref­ did so despite the fact that Nebraska is con­ Attorney GeneralJames O'Neill ordered the erendum requiring testing of persons sidered a principal site for a waste disposal agency overseeing the patient in the state­ chargedwith rape and othersex crimes facility. run General Hospital not to appeal the rul­ and with assaults on law enforcement New Yorkvoters passed a$3 billion bond ing-even though the nurses, doctors, and officers was passed by state voters on measure to improve the state's deteriorating all were unanimous in their opposition to election day. But Proposition 102, roadsand bridges, demonstrating that voters starve their patient. which would have required doctors will back spending vital for a healthy econ­ Romeo, who was appointed by the gov­ to reportthose who tested positivefor omy. ernor, held a news conference in early No­ AIDS, was defeated. vember to call the governor's order to abide by the starvationruling "tantamount to mur­ • A FEDERAL COURT found that der," and saidthat "unwanted patients should the crew of Korean Airlines Flight not be killed." Doctors and nurses, "whose 007 engaged in "willful misconduct" Food prices expected whole life center around caringfor patients, in allowing the plane, shot down by should not be forced to killthem ." the Soviets in September 1983, to be to hit record levels Now , Romeo's job is in jeopardy;and flown into Soviet airspace. The find­ "The price of meat and poultry will lead the American Civil Liberties Union has de­ ing lifts the $75,000 per person cap overall food prices to record levels next manded he be fired for refusing to abide by on airlines' liability. year," according to the current issue of Nu- the "law."

EIR November 18, 1988 National 71 Editorial

Germany under siege

Just days afterthe U. S. elections, commemorative ser­ Hitler's views as if they were those of the speaker him- . vices recognizing the 50-year anniversary of Hitler's self. Kristallnacht campaign against Jews, were used l;lSthe Jenninger was in fact characterizing the widespread occasion to destabilize the West German government. anti-Semitism in Europe-particularly in Eastern Eu­ News agencies such as the British wire service Reuters , rope-and pointing to Prussia as a nation which was deliberately distorted remarks made by Speaker of the actively fighting against bigotry. Considering Britain's Parliament Philipp Jenninger, to make it appear that he own history on the subject, this distortion of the text is was praising Hitler. This slanted news coverage was particularly disgraceful. picked up in major pressoutlets in Britain and the United Winston Churchill in 1935 expressed the view­ States, and also within Germany itself. quoted by Oswald Mosley in his book A Life of Con­ As a result, this close friend of Chancellor Helmut trasts, "It is not possible to form a just judgment of a Kohl has been forced to resign from his Christian Dem­ public figure who has attained the enormous dimen­ ocratic-led government. This is a clear attempt to fur­ sions of Adolf Hitler until his life work as a whole is ther weaken the NATO alliance, and force Germany before us. . . . History is replete with examples of men into the Soviet camp. The camp of the appeasers moved who have risen to power by employing stem, grim and quickly to attempt to nullify any stiffening against So­ even frightful methods ...." Indeed a large section of viet aggression portended by the Bush victory. The tell­ the Anglo-American establishment, including the New tale pawprints of a combined Soviet-ADL deception York Times, were in the ranks of supporters of Hitler operation are there . In the name of combatting mythical and Mussolini. anti-Semitism, the leadership of the German govern­ The Hitler Project was a collaborative effort of an ment will be brought down. international oligarchy whose aim was to destroy re­ Reuters wires purporting to report the Jenninger publican forces in Germany, no less than those in the speech are a case study in how selective quotation, rest of Europe , and Western civilization as well. This characterizati9n, and deliberate misstatement, can be same grouping, including most emphatically the Soviet used for the purpose of a disinformation op eration . ruling circles, are attempting a replay today . Their use Clearly, what Reuters objects to is the refusal by Jen­ of the media to distort the truth is no different qualita­ ninger to accept the thesis that German classical culture tively than the big lie tactics of Joseph Goebbels which produced Hitlerism. Indeed he specifically points to the they pretend to deplore . pernicious influence of writers such as Dostoevsky, in The Soviet and East German press has been quite shaping the ideology of Hitler. virulent in their condemnation of Jenninger. This is Taking Jenninger's argument out of context, Reu­ particularly disgusting considering the poor Soviet re­ ters outright lies in characterizations like the following, cord, since they are infamous for allowing anti-Semi­ sent on Nov. 11: "Philipp Jenninger, who said Hitler tism to flourish in their country to this day . This was had restored German pride and that many Germans had always the case, as Jenninger pointed out. To quote thought the Jews deserved to be put in their place .... from his speech: "Politicians stormed out in shame and anger when "Prussia, for example, became the new home not Jenninger suggested in his speech to parliament on only for French Huguenots, Salzburg Protestants , and Thursday that Hitler had been a divine gift to Ger­ Scottish Catholics, but also for many persecuted Jews. many ." Virtually up to the point of Hitler's seizure of power, R,euters then accuses Jenninger of failing to disso­ German anti-Semitism had been demonstrably re­ ciate himself from Hitler's anti-Semitism, described in strained, when compared to the militant hatred of Jews the speech. Thus Reuters quotes the characterization of prevailing in Easternand Southeastern Europe ."

72 National EIR November 18, 1988 IS THIS WHAT YOUR SON OR -M IDDLE EAST­ DAUGHTER IS LEARNING IN SCHOOL? INSIDER

We ekly Confidential Newsletter

Executive Intelligence Review has been the authority on Mid­ dle East affairs for a decade. In 1 978, EIR presented a coherent profile of the "Islamic fundamentalist" phenomenon. EIR had the inside story of the Irangate scandal before anyone else: In 1980, EIR exposed the late Cyrus Hashemi as the Iranian intelligence man in Washington, organizing arms deals and terror. Middle East Insider, created in November 1986, brings you : • the inside story of U_S_ Mideast policy • what the Soviets are really doing in the region . Then you need EIR's Special Report: • confidential reports from inside the Middle East The Libertarian Conspiracy and North Africa that no one else dares to publish to Destroy America's Schools • accuracy on the latest terror actions and terrorist by Carol White and Carol Cleary groups with an introduction by Helga Zepp-LaRouche .. and a special appendix "Saving our children: A subscription also includes a "hot line," where you can call reintroducing classical education to the for more information on any item we publish. secondary classroom," Take out a three-month trial subscription for 1000-0M, and by Lyndon H. LaRouche. 150 pages receive one of our recently published special reports as a gift. Yearly subscription at 5000-0M. (Distributed only by European office.) Write or call: Middle East Insider c/o E I Ootzheimerstr. Order from EIRNews Service, P. O. Box 17390, R 166, P.O. Box 2308, 62 Wiesbaden F.R.G. Tel: (61 21) 88 40. Washington, D.C. 20041-0390. $250

,------, , I would like to subscribe to j , Executive Intelligence Review for , Executive , I , 0 1 year 0 6 months 0 3 months I

Inte�eDce I· I I enclose $ check or money order I I Review Please charge my 0 MasterCard 0 Visa I Card No. Exp. date _____ I only us.:,Canada and Mexico Signature ______

1 year ...... $396 Name ______6 months ...... ·...... $225

3 months ...... $125 Company ______

ForeignRate s Phone ( Central America, West Indies, Venezuela Address ______and Colombia: 1 yr. $45�, 6 mo. $245,

3 mo. $135 City ______yr. $470. SouthAmerica: 1 6 mo. $255, _ State ______"-'Z ip ___ 3 mo. $140. Make checks payable to EIR News Service Inc .. Europe, Middle East, Mri ca: 1 yr. OM 1400, P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. OM 750, 3 mo. OM 420_ Payable in 0390. In Europe: EIR Nachrichtenagentur deutschemarks or other European currencies. GmbH. Postfach 2308. Dotzheimerstrasse 166, 62 Wiesbaden. Federal Republic of Germany. All other countries: 1 yr. $490. 6 mo. telephone (06121) 8840.

$265, 3 mo. $145 ------...... :.------.-' ·.00 '"-wro ll 11 o&.q,, eed 0 - . t b ,If"� to ...... e e lIgg f .... 1Irorld ed 4qtelUg ll "B e ce s best el"V1ce?

• •

• •

Confidential Alert •

In the period of fas t-breaking crisis Every day, EIR gets news dispatches coming after the -U.S. elections, it will fr om our bureaus all around the world. • be invaluable to get ahead of the news. As an Alert subscriber, you get access to • the inside story on the most important When you subscribe to the EIR Confi­ trends among policy-makers and gov­ dential Alert service, you get stories on ernments. Much of this material will what's happening on the economic and never be published anywhere else ! • strategiC fronts, before the crises break • in the regular press, or down on your EIR Alert brings you 10-20 concise head. news items, twice a week, by first-class mail-or by fax (at no extra charge).

•

Make checks payable to : • In Europe: Em News Service EIR Nachrichtenagentur GmbH. P. o. Box 17390 Postfach 2308 Dotzheimerstr. 166. Washington. D.C. 20041 -0390 D-6200 Wiesbaden. F. R.G.