LaRouche: Don Regan defeated Republicans Drug traffickers go for coup in Mexico 84-year-old fights for America's elderly

California Proposition 64 has shaken the world

�� � A.LD.S. -THE KOCH"CUOMO POXI �ITillQuarterly Economic Report

How can financial collapse be avoided? Second and Third Quarters 1986 In its last Quarterly Economic Report, EIR predicted a 15-25% further decline in the productive capabilities of the U.S. economy. That is precisely what happened between March and September of this year-before the worst, most monstrous implications of the Gramm-Rudman and related tax reform measures go into effect.·

Such events force one to ask: Is the pro-Russian majority in Congress not only committed to selling out U.S. defense interests, but also to collapsing the U.S. internal economy, and international monetary and financial system? Are the industrialized nations prepared to continue policies which will lead to their own suicide?

Did you know that. ..

• The world financial system is more than ripe • 600,000 troops, including 350,000 active d!,Jty for collapse, probably before November, and the troops, will be eliminated if Gramm-Rudman II is principal fuel for such developments is the narcotics­ implemented during the course of the fiscal year trade-dependent growth of that banking category which begins Oct. 1. known as "off-balance-sheet liabilities"-dwarfing • A further, minimal 7% decline in capital and other categories of indebtedness. durable goods production capabilities will occur in the months ahead, due simply to reduced defense procurement, if Gramm-Rudman II is implemented.

Since the fall of 1979, Lyndon LaRouche's forecasts have established a record unparalleled in accuracy by any other economic forecasting service in the nation. Data Resources International and Chase Econometrics . proved unable, in the fall of 1979, to correctly forecast the consequences of the credit policy then being initiated " by the Federal Reserve under Paul Volcker. LaRouche did, in the EIR Quarterly Economic Report. Those agen­ cies, and their co-thinkers, have been repeatedly exposed as incompetent bunglers, while the LaRouche record . is one of consistent accuracy.

Full year subscription: $1,000 Double issue (second and third quarters 1986): $500

Order from: EIR News Service P.O. Box 17390, Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche, Jr: Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke, From the Editor Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Director of Press Services: Christina Huth N early one of three Calfornia voters-about 2 million people­ INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee voted on Nov. 4 in favor of Proposition 64, which proposed appli­ Agriculture: Marcia Merry cation of classi.cal public-health measures to the AIDS pandemic. Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, They did so despite the fact that the initiative's most famous endor­ Paul Goldstein, Don Tracy ser, presidential candidate Lyndon LaRouche, was targeted by the Economics: David Goldman European Economics: William Engdahl, most lavishly financed, massive campaign of mudslinging hurled Laurent Murawiec against any political figure in recent U. S. history. Europe: Vivian Freyre Zoakos Ibero-America: Robyn Quijano, Dennis Small Now, in developments that are breaking too fast to keep up with Law: Edward Spannaus here, the United Kingdom is in an uproar debating exactly the k_s Medicine: John Grauerholz, M.D. Middle East: Thierry Lalevee of steps proposed in Proposition 64. An emergency parliameiltary Soviet Union and Eastern Europe: investigation has been launched there, and the entire spectrum of the Rachel Douglas, Konstantin George Special Projects: Mark Burdman English media, of all political persuasions, has come out demanding United States: Kathleen Klenetsky some kind of emergency measures against AIDS. INTERNATIONAL BUREAUS: The street-level of opposition to Prop 64 was made up of the so­ Bangkok: Pakdee and Sophie Tanapura Bogota: Javier Almario called Gay Lobby, a minority of homosexuals manipulated by the Bonn: George Gregory, Rainer Apel gamemasters of the "Aquarian Conspiracy" to demand to die rather Chicago: Paul Greenberg Copenhagen: Poul Rasmussen than give up their lifestyle. The higher level consists of the Eastern Houston: Harley Schlanger Liberal Establishment bankers, who maintain that a crash program Lima: Sara Madueno Los Angeles: Theodore Andromidas to stop AIDS, like the SDI, is "too costly." Mexico City: Josefina Menendez What insanity. If it's too costly to protect the population from Milan: Marco Fanini New Delhi: Susan Maitra such mortal threats, something is hideously wrong with the economic Paris: Christine Bierre approach. Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi We invite readers to compare our economics coverage to that of Stockholm: William Jones the other print media. First of all, EIR is not covering up the prob­ United Nations: Douglas DeGroot Washington, D.C.: Nicholas F. Benton, lems, or swallowing the government's doctored statistics to show Susan Kokinda the "recovery." Second, we are totally committed to revitalizing the Wiesbaden: Philip Golub, Goran Haglund productive economy, on the most advanced basis; lest we descend EIRIExecutive Intelligence Review (ISSN 0273�314) is published weekly (50 issues) except for the second week into an ecological holocaust in which AIDS may be only the first ofJuly and first week of January by New Solidarity International Press Service 16/2 K St. N. W., Suite 300, deadly pandemic. The concrete specifics on how to do this are in­ Washington, D.C. 20006 (202) 955-5930 cluded every week in EIR's "Operation Juarez" section and "Science Distributed by Caucus Di.'tributors, Inc. B...... HtlldqlUll'krs: Execulive IDlelligence Review & Technology" articles, which deal with the reorganization of the Nac:hrichtenagentur GmbH, Poslfach 2308, Dotzheimerstrasse 166,0-6200 Wiesbaden, Federal Republic . world economy and monetary system, on the one hand, and the of Germany Tel: (06121) 8840. Execulive Direclors: Anno Hellenbroich, frontiers of technology on the other. Michael Liebig If EIR's proposals prevail, we can overcome the present crisis, ,"IN""",,*: EIR, Haderslevgade 26, 1671 Copenhagen (01) 31-09-08 the most dangerous that has ever threatened mankind. Another pre­ I" Muko: EIR, Francisco mas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. diction: If young people have the chance of being scientists, engi­ J.... ,."SCriptioll silks: D.T.D. Research Corporalion, neers, and productive workers, the "Gay Lobby" will rapidly lose its Takeuchi Bldg., 1-34-12 Tokalanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. appeal, along with mind-altering drugs. Copyrighl «:> 1986 New Solidarily International Press Service. All rights reserved. Reproduction in whole or in part withoul permission strictly prohibited. Second-class postage paid al Washington D.C., and at an additional mailing offices. 3 rnonthI-SI2S, 6 months-S225, 1 year-$396, Single issue-.$\0 Academic libmry rale: $245 per year Postmaster: Send all address changes to E1R, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 955-5930 ITillContents , ..

InteIViews Departments Economics

23 Dr. John Cox 12 Africa Report 4 The Reagan recovery lies The laser physicist discusses the Zaire follows Peru, breaks with and the election disaster recent breakthroughs in food IMF. It is typical of Chief of Staff Don irradiation. Regan 's mentality that he assumed 13 Report from Rome that cranking the Dow-Jones Industrial Average back up to the 48 s. C. Birla Fight to control the "Council of 1 900 level would take voters' The advocate of the Indian Ten." minds off their economic misery. Supreme Court, takes a look at Oct. 6's great raid on Leesburg , S7 From New Delhi Virginia. First in a series of 6 Currency Rates The pot boils in Pakistan. interviews with prominent figures of the International Commmission S8 Northern Flank 7 Energy Insider to Investigate Soviet-Style Human Saudi shakeup rocks the oil Rights Violations in the United A classical KGB disinformation markets. States. scheme .

S9 Report from Paris 8 Agriculture 'Creative accounting' won't save France must intervene in America. farmS. 60 Andean Report 9 Labor in Focus Of bankers, debt, and drugs. Trade deficit alone not the key. 61 Report from Rio 10 Foreign Exchange AIDS crisis in Brazil. Will Japan-U .S. accord survive? 72 Editorial 11 Medicine Now, let's talk economics. A new virus, a new disease.

14 Business Briefs Science & Thchnology 22 Food irradiation is finally OperationJuarez a commercial possibility Fish that stays fresh in the 16 How many jobless are refrigerator for two or three there really in Ibero­ weeks, pork that is trichina free , America? strawberries that don't go bad, potatoes that don't sprout, and It is no secret that the labor force grains that don't get mealy-this of Ibero-America is inefficiently is the promise of food irradiation employed, but the magnitude of that can now be delivered. the misemployment and hidden unemployment is generally 27 Livermore announces seriously underestimated. accelerator advance

.... � Volume·13Number 45, November 14,1986

Feature International National

42 Drug traffickers go for a 64 Don Regan defeated the coup in Mexico Republicans, LaRouche The government faction protecting says the dope traffic, and the holders of Despite White House self­ Mexico's foreign debt, tried a delusions, Democratic presidential "Halloween Massacre"-but candidate Lyndon LaRouche Mexico's patriots aborted the coup remarked in a post-election attempt, leaving Interior Minister statement that it was the economic Manuel Bartlett exposed as a collapse engendered by so-called Clockwise from lower left: White chief of staff u . House mafia-linked th g <­ "Reaganomics" which turned the Donald Regan, for whom public healthmeasures against Documentation: U.S. Senate around from a 53-47 . AIDS are too expensive; a homosexual-lobby rally in The statement of California against Prop 64; Pope John Paul II, who the Mexican Labor Party on Republican majority to a 55-45 recently approved a Vatican letter condemning the what's really happening with the. Democratic majority on Nov. 4. CathOlic "gay lobby"; petitioners gather signatures for drug traffickers. Proposition64 in California; a 1986 demonstrationby Orthodox Jews and others in New Yom, protesting 67 84-year-old Elizabeth Rose Mayor Koch and Governor Cuomo's pro-AIDS poli­ 4S Soviets seem to squabble fights for rights of cies. on SDI America's elderly 30 California's Proposition 64 The LaRouche supporter is not has shaken the world 46 AIDS fear behind Soviet about to be made a victim. war on drugs? Documentation: Her statement to It is destined to go down in history a Rome press conference on Oct. as the most successful "alann­ 47 Syria, the United States, 29. ringing" public health proposal and "call to anns" yet, and it made and France: Whose game "LaRouche" a household name. is it? 69 Eye on Washington EIR Biological Holocaust Task Philippines: confessions of the Force director Warren so The 'bankers' CIA' and administration. Hamennan's address the Russian lobby after·the on AIDS in Bonn on Nov. 9, Leesburg raid 70 National News 1986. Second in a series by eriton 3S SUpport grows in U.K. for Zoakos. measures rejected by S3 War on narco-terrorism: California voters President Garcia calls citizens to fight 'from 37 Liberal press fears Prop heights of victory' 64's impact SS Spain: Pro-terrorists. 38 Who ran opposition to hound interior minister Proposition 64 62 International Intelligence 39 Endorsements of Proposition 64

40 Vatican intervenes into AIDS debate, scores 'Catholic homosexual' lobby TIillEconomics

The Regan.recovety lies and the election disaster

by David Goldman

Two months before the congressional elections, the New day before the election, the: London Guardian, an important York Stock Exchange threatened the White House with a organ of the European appeasementfac tion, derided thePres­ perceived public-relations disaster on a grand scale. It is ident's claim of having brought about economic recovery. typical of Chief of Staff's Don Regan mentality that he as­ "Reagan is shading the truth about the economy and DOone sumed that cranking the Dow-Jones Industrial Average back is yet challenging him," was the headline of Alex Brummer's up to the 1900 level would take voters' minds off their eco­ Nov.3 article. nomic misery, even moretypical that he would try to sell this The Guardian "could not help but be struck by the clang­ approach to the President.The election results should finally ing dissonance between the optimism inside the arena and convince the Presidentthat the hoax has wornthin. the dismal scenes of economic dislocation outside, such as Like the threadbaresemblance of economic stabilization, the long food queues at a ,mission in Spokane. . To. . hear the pre-election crank-up of securities values was "made in the President tell it from inside, the U.S. economy is as Japan." The White House, drawing on the Nakasone govern­ healthy as it has ever been.: 'We cut government growth, ment's agreement withthe President's strategicpoli cy, begged slashed regulations, and cut income taxes almost 25% . . . for help, and Japan respondedwith heavy purchases of dollar­ and we're enjoying one of our longest expansions in our denominated securities.This stabilized·the dollar and secu­ history.' And, 'As for· our budget deficit, we have a deficit rities markets in the two weeks prior to the election disaster. becauseCongress spendstoo much'.. .No one nationally is Unfortunately, what the denizens of Lower Manhattan may challenging thenotion as Reagan put it, 'We pulled the han­ convince each other of, doesnot necessarily impressordinary dle and it cameup jobs, jobs, jobs.' The economy did appear people suffering the effects of economic depression. to perkup in the 3rd Quarter ....However the 2.4%growtb What is now occurringin the U.S. economy cOll'e$ponds rate falls wellshort of expectations and is seen by analysts as to what EIR's Quarterly Economic Report warned. of during stealing:growth from the final quarter because of large final the fourth quarter of 1985: 'sales of-motor cars-atgenerous discounts." "Unless present policiesare reversed, the underlying eco­ nomic collapse of the United States, estimated at a rate of Fraud 2.5% per annum, will accelerate during 1986, to perhaps In the.spring of 1983 , representativesof thisnews service pass over the line into the deflationary part of the depression conducted a thorough audit of the Federal Reserve' s·lndus­ process.Vulnerabilities that have accumulated under the so­ . trialProduction Index, among other statistical series, match­ called 'Recovery of 1983-84' createthe potentialfor a further ing the:same raw data. provided by private industry to the 15-30% ratchet collapse in living standarcis, fromtne levels index-numbers generated by the four Federal Reserve staff of the late 1960s and early 1970s, and for a furtherestima ted memberswho assemble the index each month.The Fed'lndex 9% to 15% reductionin the physical economy." is theonly supposed measure of physical outputpublished by As we will review below, the drastic declines in the the U.S.government on a regularbasis. The audit uncovered output of basic industry that began in June 1986 set the a patternof outright fakery in most of the 20 individualseries economy on this trackas of the second half of the year. studied. PresidentReagan 's enemies anticipa� this result; Mon- As the Guardian indicated, the level of statistical manip-

4 Economics EIR November 14, 1986 ulation has now worsened to the point that it stinks in the are now imported net from foreign producers. That is the nostrils of usually gullible commentators. The 2.4% rate of largest foreign dependency any industrial economy has sus­ increase reported for fourth-quarter Gross National Product tained in history, exceeding the net imports of European was the worst of the lot. nations under the postwar Marshall Plan. Correspondingly, More than the entire $20 billion rise in so-called realGNP U.S. consumption would fall by close to 20%-since the was accounted for by a $30 billion rise in consumer spending. domestic resourceswhich might substitute for importsis now The size of the consumer-spending increase depends, of limited-were the United States compelledto suddenly elim­ course, on the accuracy of the Gross National Product"defla­ inate its trade deficit, e.g .• as a result of a run by foreign tor," which shows exactly what federal statisticians want it investors who have financed the deficit. to show. EIR studies in the past have shown that inflation As noted, the next big ratchet-step of industrial decline measurements are generally off by more than the reported began in June; it appears that the economy's capacity to margin of economic growth. absorb imports declined betweenJuly and August. The U.S. Most of the consumer-spending increase was attributed monthly foreign trade deficit fell in August to $13.32 billion, to auto sales; and the auto sales occurred at a loss to auto the lowest in four months, after a record shortfall in July of makers, who financed them with incentives programs that $16.05 billion. The September deficit was slightly lower. produced a $338 million loss at General Motors, forcingGM Since the dollar size of these deficits reflects the drastically to schedule the shutdown of major plants in Sevenil locations, reduced purchasing power of the U. S. currency abroad, the and to halve the $2.4 billion budget of its showpiece "Saturn" import volume in real terms has probably declined by about integrated small-car facilitY. 'tmiitediately 'after the an­ 30% from the $15.5 billion monthly deficit registered in nouncement of the GNP results,GM announced several thou­ November 1985. sand additional layoffs. If imports represent 20% of total U. S. consumption, and they have declined by 30% in volume terms, total U.S. con­ Industrial collapse sumption has declined on account of imports alone by 6% The collapse of the steel industry to levels not seen since since the fourthquarter of 1985. However, it appearsthat the the worst of the 1982 decline makes clear that American decline in consumption was concentratedin the third quarter, industry in general is unraveling. October steel output was given the simultaneous sharp decline of import levels and barely above 5 million tons, i.e., an annual rate of slightly basic-industry production. over 60 million tons, less than half of what the steel industry Of course, running off excess inventories, as the auto reports its own capacity to be. The decline since October companies did during the third quarter through their money­ 1985, when the industry poured 7.4 million tons of raw steel, losing incentive programs, provides something of a buffer is 30%. Other basic metals show declines in the 20-30% against immediate consumption declines. It appears that the range over the same period. continued expansion of consumer credit during the third The collapse of steel output has been falsely attributed to quarter, at the immediate cost of future production (as the the ongoing lock-out at USX (the former U.S. Steel Corpo­ case of General Motors' profit declines shows), masked the ration).The reverseis true: The lock-outat USX, which will sharp, underlying deterioration of production. lead to the permanent closure of about half of the capacity at the largest American steelmaker, anticipated a collapse of The decline of employment steel demand, and sought to eliminate labor and capital costs Nonetheless, what the population perceived up to and in advance. Steel imports are also collapsing. They fell 13.9% through the third quarter, was a marked deterioration of its to 14.3 million net tons in the first eight months of 1986, economic prospects. Not merely did industrial employment compared with the 16.6 million tons importedlast year. Steel continue to deteriorate, but lower-paying service jobs ceased importsin August alone declined 25% to 1.5 million net tons to becomeavailable. from the 2.0 million net tons imported in July, the Institute During the first seven months of 1986, services hired said. August imports from the European Economic Com­ about 200,000 new workers each month. However, goods­ munity and Japan were off 26.9% and 20.8%, respectively. producers laid off an average of 8,000 employees per month Theeconomy's capacity to absorb steel apparentlycrashed over the same period. During August and September, the rate during June, when EIR warned that a 15-25% perannum rate of availability of new service jobs shrunk by nearly 50% to of falloff in physical output was in progress-corresponding an average 106,000, while the decline in goods employment to the forecast offered by EIR's Quarterly Economic Report accelerated. in January 1986. Reported unemployment rose sharply to 7% in Septem­ ber, a jump of two-tenths of a percentage point after three Trade deficit improvement: bad news months of declines. The actual unemployment number, as Roughly one-fifth of all U.S. physical product, and one­ most analysts now admit, lies somewhere in the 15 to 20% quarter of all capital goods, consumed in the U.S. economy. range, including individuals forced out of the reported work-

EIR November 14, 1986 Economics 5 force. Nonetheless, the Labor Department's report reflected wHat voters pulled the lever agllillst oti" No\'. '4. Anoilier ' 'Currency R;ates 40,000 factory jobs were lost, bringing the total number of manufacturing jobs eliminated this year to 200, 000. The ,Labor Department reported that 300, 000 more Americans The dollar in deutschemarks, New York I.ae afternoon IIxIJII lost their jobs in September. In addition, 135, 000 jobs in the oil and gas sector have vanished, about 25% of the industry's 2.38 entire work force. EIR warnedin our first-quarter 1986 Quarterly Economic 2.10 ,Report that a crash of inflated real-estate values would begin

this year, especially if "tax reform" eliminating prior tax­ 2.10 .benefits for real-estate investment ·were emiddl. '1'Iie' 2:'5% . vacancy rate nationwide for prime commercial office space 2.00� � ""-- .-. � has already produced a 30% decline in commercial construc­ � " tion over the past year; with a virtual shutdown in the stricken 1.90 '.J oil-producing states. Analysts anticipated a 25% or more 9/16 9/23 9/30 1017 10/14 10/21 10128 1114 decline in office-building prices nationally. The dollar in )'en Usually, commentaries on the real-estate industry at­ New York late afternoonfixinK tempt, to forecast demand for commercial office space by : 'projecting office, retail trade, restaurant, and hot�1 employ­ 190 ,'ment. In fact, real-estate speculation .creates such jOQS iriihe , short-term, not vice versa. Bankers and dev�opers agree to 180 build a shopping mall or an office complex, and, in the process, recruit the tenants of the proposed project. That is 170 to say that much, perhaps most, of the service-sector em­ ployment increases of the past three years reflect speculation 160 .... in rising real-estate values, more than any ,other economic '"\. V 158 --- development. 9/16 9/23 9/30 1017 10/14 10/21 10128 1114 The decline in service jobs during August and September coincided with the break in the' real estate market (and The dollar in Swiss francs Congressional passage of "tax reform"), and may well have New York I.ae aftemoon IixInI been caused by it. The big declines in non-goods�producing employment occurred in hotels,' architecture and .engineer­ 2.01 ing, recreation, health, and sm�l busilless, i.e., preciselythe 1.90 sectors which benefited most from thereal-estate boom. These ' sectors hired 100, 000 new workers on average betWeen Jan­ 1.80 , uary and July; that fell to 50,moin September.' In all the discussions of the "shift ',to services, " no one" 1.70 appears to have asked the question: Where do service em­ ployees obtain hoUses, cars, food, and ciothing7"Theanswer, �'� 1,60 ,� � - J/ in order of volume , is' from Japan; the developing n�tioris, 9/16 9/23 9/30 Ion 10114 10/21 10I28! 11/4 and Western Europe. Si,nce conditio!l� no .longer ,exist in which,tI1e United States can financeIi $200 billi.on pel", annum The British pound in dollars New York late afteraoon IixInI trade deficit, the conditions for continl,led expansion of ser- ',' vices,,or even maintenance of the prescnt bloated·IQvel, no 1.58 longer exist. , That suggests that there is still a very long way to fall. � --. ' - 1.40 - - - During 1982, i.e., during the last major ratchet dOWllward in

industrial output, service employment was stagnant. By the 1.30 end of 1984, the real-estateboOm brieflypushed themonthly '

hiring rate in services to. 300,000. The eliqunation o'f �e 1.Z8 foreign-trade subsidy, and the' collapse of basic industries, will wipe this out during the ensuing months, creating true 1.18 9/16 9/23 9/30 10/1 11/4 mass unemployment�as opposed to the massmiscempl{)y­ Ion 4 10121 10128 ment of the last two years. .

6 Economics EIR November 14, 1986 Energy Insider by William Engdahl

Saudi shakeup rocks the oil markets oil export earnings. It now seems that Yamani'was If anything, with the seasoned Yamani gone, chances will the dumpedin a desperatebid to "talk"oil increase for all-out price wars among OPEC members. up by signaling a boldshift in strategy. Yamani, a Harvard trained Texas oil­ patch roustabout,who had been Saudi T he surprise dumping of the man MiddleEast Economic Survey said that oil minister since the birthof OPEC in most associated with the Organization the Saudi's declared strategy follow­ 1962, even reportedly lost his honor­ of Petroleum Exporting Countries, ing Yamani's ouster "won't work, it ary title of Sheikh in the ouster. M.ore (ex)-Sheikh Yaki Yamani, on Oct. 30, is absolutely contradictory. They are interesting is what OPEC andthe Sau­ can only be a desperate."mQ\,e,by a calling for $18 oil andat thesame time dis can do now to deliver on theintent. Saudi Royal House intent on changing a greater share of the total market." One London brokerage source says the policy without having the means to Saudi production for the last months Saudis have privately determined to accomplish it. Within hours, acting has run 4.3-6 million barrels perday. resort, if needed, to their earlier role Petroleum Minister Hisham Nazer's The sales have been secured on the as "swing producer" if the Dec. 11 call for a meeting of the OPEC Price cutthroat basis of so-called "netback" OPEC ministers' meeting fails to gain Committee to work out an accord to contracts. These guarantee to the ma­ agreement to further reduce output. bring world prices back up to the $18- jor oil multinationals such as Exxon, Most Rotterdam and London industry 20 per barrel level, sparked euphoric Mobil, BP, and Shell, "irresistible" sources predictsuch OPEC consensus speculation on oil futures markets and terms giving the buyer a fixed profitat is impossibleunder strainsof crisesin drove prices of North Sea Brent from the refinery point, regardless of mar­ every OPEC economy. sagging levels of $13.50 to above ket fluctuations. The Saudis resorted One possible gimmick is that the $14.50. tothis desperate means toincrease their Saudis plan to cancel existing netback A week later, no firmdate for Na­ market share late last year. Saudi out­ contracts retroactive to Oct. 1. If so, zer'semergency meeting had been set, put had fallen to 1-2 million barrels given the six-week lead of such con­ and traders have decided to hold back perday by summer 1985 according to tracts, the markets could expect some from any speculative binge pending industry sources, when the Saudis de­ sign of such a move by mid-Novem­ concrete action fromOPEC. cided to try to regain market share by ber. Within hours of the last OPEC scaring the rest of OPEC, as well as a Diplomatic and Saudi-linked ministers' meeting in Geneva, which lot of non-OPEC, into obeying pr0- sources are circulating the rumor that ended on Oct. 22 with a pledge to an duction share agreements. the Saudi Royal House acted under even larger output of oil, prices began According to European industry pressure from Washington, as well as a steady fall. Clearly, the reality of sources close to Mideast oil politics, OPEC desperation. Certainly George , depression in the world's largest in­ the Saudis were shocked at how far Shultz and Donald Regan exert enor­ dustrial economy, the United States, world prices dropped as a result of mous influence on certain Saudi cir­ combined with devastated economies their strategy. In November 1985, cles. Regan's associate at Merrill in most of the developing world, in­ North Sea Brent sold for almost $30 Lynch, David Mulford, now assistant

cluding once-prosperous OPEC lands, perbarre l, with Mideast crudes a few treasury secretaryfor internationalaf- ' has brought no "upswing" in demand dollarslower. By last summer, prices fairs, was theliaison to theSaudi Am- .. foroil. Monetarist dogmabreaks down for certain Saudi cargos were reliably bian Monetary Agency for 10 years in a real depression, and "demand" reported as low as $7 per barrel on before coming to Treasury in 1983. does not growout of the"magic of the netback, with furthergiveaway incen­ The growing world economic marketplace." This lesson has yet to tives up to $1.50 perbarre l. Oil indus­ depression means no oil minister can be digested by the Saudi Royal House. try and banking studies indicate that a increase both price and market share . With or without Yamani, who by all sustained price well below $15 will over a longer term. If anything, with accounts was the convenient "fall lead to massive bank insolvencies and the seasoned Yamani gone, pressures guy," the strategy has beencontradic­ industrial collapse in big parts of the to market anarchy will increase the tory and inept. U.S. oil industry. As well, the $100 chances for all-out price wars among A spokesman for the Cyprus-based billion Mexico debt bomb is tied to its OPEC members.

EIR November 14, 1986 Economics 7 Agriculture by Marcia Meny

'Creative accounting' won't save farms an overly rosy picture-fann prices 1.6% The Farm Credit System has been authorized to keep "secret are now lower than last year at this time. For feedgrain crops , the Oc­ books," but no help is on the way to fa rmers. tober index was 96, based on 1977 prices being 100. Com prices are at their lowest point in more than 20 years . At some places in Iowa, com has been selling for less than $1.00a bushel. Although feedgrains are cheap for By the end of November, the giant up the system, but only caused more livestock use, meat animal producers Fann Credit System is scheduled to hardship, further jeopardizing future cannot afford to operate, despite the have put the finishing touches on its food supplies. fact that fann meat prices have risen procedures for keeping two sets of Court actions have been filed to by 9% over last year. Hogs and cattle books-a "creative accounting"gim­ preventthe shunting of money around herds are decreasing drastically. mick quietly authorized by the outgo­ the system, and fanners have been What is required from Washing­ ing Congress to keep the FCS afloat lobbying to demand that the FCS re­ ton is a package of emergency' mea­ until the l00th Congress opensin J an­ structure loans and offer lower interest sures to freeze and reschedule fann uary. rates to keep fanns in operation. debt, pump low-interest fann credits During the closing days of its last The FCS is nominally fanner­ through the agriculture lending sys­ session, a radical plan was authorized owned, but in reality, it has been run tems, and implement a food exports to allow the FCS to spread fann loan for some time by bankers who advo­ "boom" policy based on development losses over 20 years, and do some oth­ cate the austerity policies of the Fed­ project needs in target zones of the er fancy bookkeeping not so far per­ eral Reserve and International Mone­ West---.,.Africa, Central America. Wld mitted to any other sector of the econ­ tary Fund austerity policies. IMF of- so forth . omy. One set of FCS lending agency . ficialsstate that a large part ofthe U. S. Instead, a sham set of �elp-tbe­ books is to reflect the true disastrous fann sector is "redundant," and should fannerprocedures is to be followed by condition of loans; another set can be be shut down. the FCS. Naylor, who has become fa­ altered to stretch out FCS loss write­ The FCS is a government-mandat­ mous for euphemisms about the FCS offs , so that FCS debts can be paid. ed entity that commands privileged disaster, likes to call them the "bill of In 1985, the FCS lost a whopping borrowing terms, but it must raise rights." These rules are to go into ef­ $2.7 billion. This year, the rate of money on the public market. In an fect by the end of November. ,They losses is running even greater, ex­ attempt to maintain public confi­ call for guaranteeing therelease offull ceeding any internal emergency loss dence, FCS chairman Frank Naylor data on interest rates and full access to reserves. The FCS holds about $75 has maintained forced optimism in his loan documents. They define proce­ billion worth of national agriculture public statements.a At meetingof FCS dures for dealing with fanners who debt, accounting for about one-third regulators in late October, Naylor told seek forbearance on delinquent 10flDs of all fanndebt. At present.an official reporters, "We are not in any immi­ and for fast review of loan rejecti�ns. $8 billion of the FCS debt is not being nent crisis, and we do not intend to FCS lending agencies will be able to serviced at all. Billions more are sig­ move forward without some deliber­ set their own interest rates, without nificantly delinquent. ate care. We.do not intend to move approval by regulators. Fanners have In December 1985, Congress forward in a 'shoot-from-the-hip' been demanding low interest rates to passed legislation permitting the FCS mentality, if you will." Naylor insists contiDl�e their opera�ons: . regulatorsto move money out of more that the accounting gimmicks will be However already, within weeks of solvent districts, into districtsin finan­ usefulto "buy time." congressional action, the FCS regu­ cial crisis (called "capital sharing"). Most fanners know otherwise. lators warn that they will not permit Other sweeping powers were granted Fann prices are falling to unprece­ "excessively low" interest or misuse to create a new entity, FCS-Capital dented levels relativeto costs and debt of extended loss write-offs , if these Corp., to dispose of foreclosed fann­ servicing. According to the latest result in "unsafe and unsound" finan­ land. These operations have not shored USDA figures-which always paint cial practices.

8 Economics EIR November 14, 1986 Labor in Focus by Mel Klenetsky

Trade deficit alone not the key Brazil, Venezuela, and other devel­ a Labor should look at the overall economy, and at policies like oping n tions that are being forced to export the steel they need themselves, those that made America a net steel importer. in order to pay off their foreign debts. How can American exports be pro­ moted when the developing sector, through InternationalMonetary Fund­ dictated loan conditions, is forced to slash American imports and export Stopping foreign imports has long that there was a trade surplus in Janu­ everything that is not nailed down? been a concern of organized labor. ary 1981 when Reagan took office. First Boston Corporation is doing Union leaders will not endorse politi­ Since then, the cumulative trade defi­ its allto shut down U.S. blast furnaces cal candidates who drive foreign cars. cit has grown to more than $500 bil­ and integrated steel-mills, the guts of The AFL-CIO has just begun The lion, much of this hitting the Ameri­ the new steel making capacity, while Union Label Shopper, an all-union can manufacturing sector hardest. other financialinterests, like the Swiss catalogue to tap into the gigantic U . S. More importantly, the position of graingiant Cargill, promote the recy­ mail order business. manufacturing is getting worse. cled scrapindustry by buying up elec­ AFL-CIO economist Mark An­ In the first nine months of 1986 tric-arcfurnace capacities. derson says the federation's firstprior­ manufacturing imports topped exports America, once the engine of world ity in January, when the 100th Con­ by $107.5 billion, one-third higher production, is becoming an aging in­ gress convenes, will be to pass trade than 1985, when the differential be­ dustrial giant that is cannibalizing it­ legislation that will rescue American tween imports and exports represent­ self and its neighbors to get the steel it workers, industries, and communities ed an $80.9 billion manufacturing needs for consumption. World pro­ from disaster. Indeed Democratic Sen. trade loss. September's deficit stood duction overall is dramatically col­ Robert Byrd, the man who will take at $1.8 billion with Western Europe, lapsing, in termsof basic manufactur­ over from Bob Dole as Senate Major­ $4 .1 billion with Japan, $1.5 billion ing. ity Leader, has indicated that trade with Canada, and $1.5 billion with In EIR' s June 1985 QuarterlyEco­ legislation will be among the top three Taiwan. Only America's farmers in nomic Report, it was shown that just priorities of the Democrats when the Septemberran up a farmtrade surplus to meet the defense requirements to Senate opensfor business. of $138 million, after three months of keep up with the Soviets requires re­ The AFL-CIO's concern with the agricultural trade deficits. vitalizing the V.S. machine-tool in­ federal trade deficit is not totally un­ In the 1986 general elections, it dustry to the order of $600 billion. justified, but dealing with the trade was well recognized that the vote was This points to the dangerous collapse deficit without addressing the more a vote against the way the Republi­ of the V. S. machine-tool industry fundamental barriers to real recovery cans have dealt with the economy, not causedby the 28% dropin the number is just re-dividing a shrinking pie. The a vote for the way the Democrats have of machine tools used in the V. S. from U.S. trade deficit is a reflection of a handled things. 1973 to 1983, and the fact that more collapsing world economy, not its In 1984 the United States con­ thart two-thirds of the existing stock cause. sumed 98 million tons of steel, an ex­ of machine tools are "over-age." A Still, the U.S. trade deficit, which traordinary drop compared to 1973 machine-tool investment program of reached$1 27.9 billion for the firstthree when the U.S. consumed almost 15 1 this sort needs 44 million tons of iron quarters of this year, is one of the truest million tons of steel. In 1984, 48 mil­ and steel to begin with, and 4.4 mil­ readings of how shaky the world econ­ lion tons of steel came from new pro­ lion tons per year to rejuvenate exist­ omy is. The shortfallbetween imports duction, 26 million from imports, and ing stocks, once thedeficit is made up. ' and exports, at this rate, will reach 24 million from recycled scrap. While Americanindustry can flourishif, $170.5 billion, nearly 15% ahead of it is true thatimports of raw steel have and only if, world trade increases in 1985, the previous high. increased tenfold since 1980, this the context of world production in­ The AFL-CIO is quick to point out comes as a result of a conscious policy creasing.Any other context may give thatevery $1 billion in tradewipes out to shut down domestic steel. short-term gains that will soon be more than 22,000 American jobs and The raw steel imports are from wipedout.

EIR November 14, 1986 Economics 9 ForeignExchange by David Goldman

Will Japan-U .S. accord survive? nese have the leverage to dominate the primary dealerships as well. One wire­ The hidden agenda of the Oct. 31 Baker-Miyazawa agreement service account quotes an unnamed did nothing to help the administration in the u.s. elections. MerrilI Lynch executive complaining, "We were always afraid of becoming Nomura-MerrillLynch ." However, the effect of all this on the dolIar is not likely to last long. Japan apparently drove a hard bar­ ciation of the yen (and deterioration of First of all, only the Japanese, but not gain with the Reagan administration Japanese foreignmarke ts). These dol­ the West Germans, agreed to Ameri­ in return for financing a pre-election lars, invested back into U.S. Treasury can demands for such a public-rela­ boostfor the U . S. dolIar and securities securities, financedthe lion's share of tions exercise. The West German markets. The supposedly broad-rang­ America's third-quarterde ficit. Bundesbank continues to build sup­ ing economic agreement announced That arrangement could not last port for a European bloc against the Oct. 31 by Japanese Finance Minister long without broader support for the dollar, as the central bank's president, Miyazawa and his American counter­ dollar, which Miyazawa provided on Karl-Otto Pohl, represented to British part, TreasurySecretary James Baker the Friday before the U.S. elections. Prime Minister Thatcher during his III, boilsdown to the following: The yen fell to about164 , and the OM October visit to London. 1) Japan demonstratively cut its to about2.0 7, a swing of between 2% West Germany dependsmuch less discount rate to a postwar low of 3% and 3% for both currencies, as a re­ on the American market than does Ja­ from 3.5%, a purely symbolic action sult. pan, but that is not sufficientto explain which could not, by itself, have any What did the Japanese get in re­ the divergence of policies. Rather, the impact on foreignexchange markets. turn? Although the principal motiva­ Bundesbank now orients towards the 2) Japanese investors agreed, for tion appears to have been political, Munich-Zurich-Trieste banking and the moment, to continue to throw the they insisted on cementing the agree­ insurance combination, which fore­ proceeds of the country's $50 billion ment through a bigger, open presence sees a central European bloc moving trade surplus into American securi­ in U.S. bond markets. The purchase by steps out of NATO. ties. of New York's AubreyLangsto n, one To be fair to the Bundesbank, it 3) The American side agreed to of the most prestigious of the 35 pri­ does not have an American policy to sell Japan a big piece of the store, mary dealers in U.S. Treasury secu­ work with. The Federal Reserve, as namely, the$120 biIIion-per-daymar­ rities, by a Japanese bank, was an­ most Wall Street commentators not­ ket in U.S. Treasury securities. nounced two days before the Baker­ ed, is merely looking forcover under For apparent political reasons, re­ Miyazawa agreement; in some ways, which to throwhuge amounts of mon­ flecting Japanese Prime Minister Ya­ it is even more important than Sumi­ ey at the U. S. banking crisis. Any rise suhiroNakasone 's concern with Pres­ tomo's purchase of a 12.5% stake in in U. S. interestrates would not merely ident Reagan's ability to maintain his Goldman Sachs. hurt securities markets, but would strategic policy, Japan reversed its The U. S. banks and investment cause huge chunks of the rotten real­ previous stated intentions, and contin­ houses are facing enormous competi­ estate market to falI out, compromis­ ued to financethe American markets. tive pressure from the huge Japanese ing the entiresavings and loan system, Earlier, Japanese private investors had trading houses such as Nomura, Dai­ as well as large parts of the commer­ abandoned their $50 billion-plus rate wa, and such in the U.S. Treasury cial banking system. of investment in U.S. markets, evi­ market. In what observers character­ The Fed is so sensitive to this per­ dentdu ringthe second quarter;during ize as "open warfare," the Japanese ception that it immediately announced the thirdquarter, they appearedto pre­ are believed moving to use their in­ that it had no plans to cut its own lend­ fer gold, which they bought at an an­ vestmentsin U.S. governmentdebt to ing rate. But that is what it will have nual rate of nearly $30 billion. In the increase their control of the U.S. fi­ to do, and the unravelling of the bank­ interim, Japan's central bank bought nancial market. ing system will continue the pressure dollars on the foreign exchange mar­ As the largest primary purchasers on the dolIar, whatever the Japanese ket in order to prevent further appre- of U.S. Treasury securities, the Japa- do.

10 Economics ElK November 14, 1986 Medicine by John Grauerholz, M.D.

•A e v s., ._D.e __s..! .se . _ ',,, . ''" ",'. " '_t, _D..w__ir.u_ a .w dt J a." ., ?e " -- .' .' .. "'�-'''seritbre thOse s�en iii AIDS 'patierits, Recent discoveries in immune depression have implications jor ' such as loss of memory and inability to concentrateor performonce routine researc h on AIDS an otd er h new d·ls eases. mental tasks. Like mononucleosis, chronic mononucleosis syndrome ap­ pears to be highly contagious. Many of these patients have evi­ deqce of exposure to most, if not,a}l, A new member of the herpes virus already immunocompromised hO,sts. of the berpesvirus es, and it is difficult family has been isolated in the labo­ This immunosuppressive characteris­ , to distinguish between those with the ratory of Dr. RobertGallo at the Na­ tic is shared by the Epstein-Barr virus. diseaseand healthy individuals, on the , tional Cancer Institute, according to The other members of the herpes basis of serological evidence of ex­ the Oct. 31 issue of Science magazine. virus family-herpes simplex, which posure to Epstein�Barr' or other virus- This new human B-Iymphotropic vi­ causes cold sores and oral ,ulcers; es. rus (HBL V) was isolated from the ,herpes genitalis, which causes genital Whether or not HBL V will turn white blood cells of six patients, two herpes; and Varicella-Zoster virus, out to be the " cause" of chronic mon­ of whom were seropositive for the which causes ' chicken pox and shin­ onucleosis-like syndrome is now un­ AIDS virus, and four of whom were gles-all produce life-long latent in­ der investigation at the National Can­ seronegative. All of these patients had fections which become active when cer Institute and by clinicians in Bos­ either leukemia, lymphoma, or some the immune system is suppressed by ton, New York, Houston, Fort Lau­ other abnormality of the white blood infections or stress. , derdale, Miami, and Tahoe. The more cells, known as lymphocytes. The initial evidence suggests, .cer­ intriguing possibility , however� is that The new virus has the physical ap­ tain parallels with the AIDS virus. As the disease may be the cause of the pearance (morphology) of a herpesvi­ noted above, the HBLV apparently a�­ virus. rus and maybe related to these virus­ tacks B-cells in culture aIld destroys 'The discovery of the AIDS virus es, which cause cold sores, genital them. This is somewhat analogous to has tended to obscure the large body herpes, chicken pox, shingles, and the situation with the AIDS virus of data on environmental, nutritional, mononucleosis, and are involved in (HTL V-III), which destroys T -cells in and other factors associated with the the production of a number of cancers. culture, as opposed to immortalizi�g <:tevelopment of Acquired ImInune HBL V is distinguished from the other them as the Human T�cell Leukemia DeficiencySy ndrome. Thereis a large herpes viruses of animals and man, by Virus (HTLV-I) does. ' ' body Qf literatu� which documents an apparently restricted host range, in­ One disease in which the' new yi­ the ability of viruses to recombine in fecting only freshB-Iy mphocytes, and rus may play a part is a chroriic mon­ an infected host ,and produce'new viral apparently killing them, as opposed to omicleosis-like syndrome which has ,strai�s. The ability of the helpes vi­ , apother herpes virus, the Epstein-Barr come to the attention of tile m¢iCai ,'�s�s to infect i�unosuppressed in­ virus (EBV), which transforms infect­ profession in the United' States over dividuals, ,and to then produce addi­

ed B-Iymphocytes into cancer cells. the past tWo to three yeaTs. This syn­ tional immunosuppr' ession, , .is well , The appearance of a new member drome, which some physicians attrib­ d()curriented. or the herpes virus group of viruses ute ta a chronic Epsteih-Barr virus in­ It may not �, entirely fortuitol,ls has a number of implications.' All fection, gained receIitprcimlIiencevvith that �� 'see qte ,en\ergence of yet an­ members of the herpes virus family the report of 150 ��se� dra�ri�s�d in 'other , ilDJllunosuppressive vin,ls in are associated, in one way or another, the Lake Tahoe area ' of Nevada be­ areaS w��re AIDS is alread.Y� proh- of the immune tween the fall of 1984 and the fall of , lem,,�d where the general heaitben ­ with derangements ' ": ." system. One member of this family, 1985 . viro�rit, sanitar,y infrastiu�, and the cytomegalovirus, was an early 'The disease ' is charaCterized by a nutritional level have declined. If this candidate as the cause of Acquired cluster of non-specific symptOms 'in­ &cline continues, the molecular ' bi­ Immune Deficiency Syndrome, be­ cluding chronic fatigue, headache, ologists may have many more inter­ cause of its widespread prevalence in swollen glands, recutrent headaches, esting viruses to write about-ass!Jm­ AIDS patients, and its ability to pro­ and sore throats. In addition there are ing they are still aroundto do the writ­ duce further immunosuppression in neurological complications which're- ing.

ElK November 14, 1986 Economics 11 Mrica Report by MaryLalevee

Zaire follows Peru, breaks with IMF payments had been made even though "We have implemented IMF policyover the past/our years, and Zaire was losing $150 million due to the collapse of the prices of copper and the effe ct on the national economy has been a catastrophe ... cobalt, Zaire's main exports. "The problem is political, not technical,'I. said Kengo. "It is the gov­ ernment which is being attacked by the IMP, but you should know that the regime will defend itself with all its Zaire'SPresident Mobutu Sese Seko As all IMF programs are nothing but ineans." Following which, Kengo announced on Oct. 28 that from Jan. austerity and "stabilization," thatis the walked out of the meeting. I, 1987, Zaire will limit payment of end of the IMPin Zaire. At themeeting of the PopularRev ­ debt service to no more than 10% of On Oct. 31, PresidentMobutu dis­ olutionary Movement, President Mo­ export receipts. Although President missed the prime minister, Kengo Wa butu said that "The economic situation Mobutu did not mention the precedent Dondo, who has faithfully imple­ is not going very well. To be con­ set by Peru's Alan Garciain the state­ mented IMPdemands over thelast four vinced of that, it is enough to observe ment issued in Kinshasa, in which he years. Mobutu abolished the post of the standard of living of the popula­ accused the International Monetary prime minister, and named a new fi­ tion, the prices in the markets, how Fund (IMp) of strangling its econo­ nance minister, Mabi Malumba, companies operate , the state of social my, it is clear that Africa has started known for his anti-IMF attitude. He infrastructure, of heaJth and educa­ to follow Garcia's example in his re­ had publicly criticized the IMP during tion. " jection ofIMF and internationalbanks a meeting of the central committee of Jeune Afrique reported that a Zai­ demands for yet further belt-tighten­ Zaire's political party, the Popular reanofficial earns approximately 1 ,000 ing in the developing sector. Revolutionary Movement. zaires per month: To feed his family, President Mobutu "has slammed The behavior of the IMF had led he needs 300zaires per day. the door on the IMF ," said one Zairean Kengo Wa Dondo himself to "ex­ Thereare indications that the Zai­ source. "We have implemented IMF plode," at a stormy meeting between reanexample will now be followed by policyover the laSt four years, and the the IMF and Zairean government au­ other African countries. The Su­ effect on the national economy has thorities on Aug. 30, according to the danese prime minister, Sadeq el Mah­ been a catastrophe. Now the IMP is French weekly Jeune Afrique. The di, had announced at the United Na­ demanding another three or four years IMP had refused to disburse two pay­ tions General Assembly meeting in of thesame . Dothey takeus for fools'!' ments of $28 million, in April and September that Sudan would be lim­ The statement said that the IMF June, despite Zaire's strict adherence iting its debt repaymentsto a percent­ program had "led the country to op­ toIMP precepts. Kengo demanded an age of its exportrevenue. erate, without sufficient compensa­ explanation: The IMF representative, Some action must be taken be­ tion, a net transfer of capital which is Louis Goreux, acknowledged that in cause the economic situation of most not balanced by consequent invest­ April Zairehad respectedthe rules laid African countries is steadily worsen­ ment from external partners." Such down by the IMF, but he did not ex­ ing. The number of people officially investment was needed if therewas to plain why the payment then had not suffering from malnutrition in Africa be a recovery which would enable the been authorized. In June, he ex­ increased from 80 million in 1980 to country to repay its debts, said the plained, the governmenthad commit­ 100million in 1984, and these arecer­ statement. With a diplomatic choice ted the error of deciding to increase tainly underestimates. of words, the statement says that there salaries. So, he concluded, the IMP The Frenchnewsletter Lettred' Af­ will be no more IMF programs: "Any would not authorizethe two payments riquecommented in a recentissue that future program with the IMF should until Zairebehaved moreobediently. it seemed that Western bankers and be seen as a supplementary aid to na­ In response, a furious Kengo de­ financiers considered that the "battle tional efforts, and concluded with a scribed the state of the Zairean econ­ against misery" had been lost in Afri­ view to a real launch of the Zaireecon­ omy, after four years of IMPausterity: ca, and 'that French government pro­ omy, and no longer simply as a pr0- Zaire was paying 50% of its export posalsfor a "Marshall Plan" for Africa gram of austerity and stabilisation." receipts in debt service, and debt re- had not receivedmuch support.

12 Economics , EIR November 14, 1986 Report from Rome by Galliano Maria Speri

Fight to control the 'Council of Ten' Meanwhile, Anthony Tannoury, a Lebanese-born financier and weap­ The old Venetian oligarchy's institutions are playing a big role ons-smuggler closely linked to Libya, in currentfinancialpower struggles. has decided to sell a package of Ge­ nerali of around 2.4% that mysteri­ ously leftItaly years ago. Tannoury is not the only owner of the package; the others are Mazed Pharaon, brother of the notorious Gaith, Mohamed Al T he death of two bankers linked to real wealth is not known. The man­ Higgayi, president of the Libyan Arab the Vatican, Roberto Calvi and, more agement admits that it controls several Foreign Bank. and formerLibyan am­ recently, Michele Sindona, has de­ billion dollars, but nobodycan say ex­ bassador to France Muphta El Daghil. fined a watershed in Italy where actly how many, because the huge es­ Nobody knows how the shares found "Catholic finance" has been brutally tates that Assicurazioni Generali pos­ their way into their hands; the bank defeated, at least in this phase, by what sesses all over the world are a well­ that carried out the operation is the is known as "lay finance."This means kept secret. It is known to control 118 Banca Commerciale Italiana, which that the field is open for the biggest companies, 47 of them smaller insur­ passed the whole package to the Swiss power struggle since World War II. ance companies, in more than 40 Banca del Sempione. Since one adversary, the Vatican , has countries. The firm buying the shares from been knocked out, the other fighters Assicurazioni Generali has no big Tannoury is a Swiss financial compa­ are sharpening their knives with more shareholder. The biggest is Mediob­ ny called Sasea, a very shadowy ven­ -lust. anca, the only Italian merchant bank, ture often used by "Arab" investors. Accounts inside chemical con­ which holds 5.15% of the shares; the Sasea's president is Florio Fiorini, glomerate Montedison are about to be rest is divided among tens of thou­ former financial director of ENI, the settled with the de fa cto takeover by sands of shareholders. This means that Italian state oil company, who was Ferruzzi group president Raul Gardi­ to acquire a small packet of around 2% forced to resign a few years ago when ni, allied with Olivetti's president of the company is veryhard, and re­ he tried to use ENI money to bail out Carlo De Benedetti . Agnelli' s Fiat is quires a huge amount of money. Vatican-linked banker Roberto Calvi. launching a strong bid to take over Hence, it is said to be almost impos­ It is hardly surprising that Fiorini Alfa Romeo in competition with the sible to get a controlling sharebecause is negotiating the Generali deal with Ford Motor company, which will give it would take billions of dollars which Libyan agent Tannoury. Fiorini has a it a monopoly over car production in nobodycan afford. Yet the possibility business experience with the Libyans Italy. The role of Mediobanca, the core cannot be ruled out, because "Dope, dating frrm his buy-out of the Tamoil of all postwar Italian finance opera­ Inc." has the liquidity for a run on oil company from weapon smuggler tions, has been trimmedbit. a But there Generali. In fact somebody is buying Roger Tamraz, and resold it to the are other fish to fry . as many shares as possibleof Generali Libyan government, which turned it The main struggle revolves now on the Italian market, pushing its price into a joint venture with Italian inves­ around Assicurazioni Generali of upward. tors; Tamoil's president is still Mr. Venice-Trieste, the insurance giant All this makes it easier to grasp Mazzanti, former ENI president. that is like the hilltop from which the why Mario Schimberni, president of This whole deal represents an Italian economy can be controlled. It the Italian chemical conglomerate overlapping of the old Venetian fondi is not just one of the biggest insurance Montedison, fought so hard to take with Libyan-tied dope and weapons companies in the world, but the seat control of Florentine insurance com­ smugglers (by the way, Tannoury where the Venetian oligarchical fam­ pany La Fondiaria, which controls a cannot set footin Italy because he has ilies' fondi are managed with experi­ 1.3% share in Generali. Unfortu­ been indicted by an Italian judge for ence dating back centuries, back to the nately for Schimberni, a bigger fish arms smuggling). Fiorini has already days when a "Council of Ten" had than he, Raul Gardini, bought Mon­ announced that he will resell the Ge­ life-and-death power over Venetian tedison. According to informed neralipackage . Whoeverthe buyer is, subjects. sources, Gardini will also become will find himself well-placed in the Strangely enough, the company's chairman of the board of Fondiaria. "Council of Ten" that rules Generali.

EIR November 14, 1986 Economics 13 BusinessBrief s

Dope, Inc. for the defensive systems themselves .... News. the English-language newspaper "Experts believe that the real competi­ controlled by the U.S. Embassy in Mexico Raid uncovers Soviet tion between the U.S. and the Soviet Union City, on Oct. 30. Although officials in pub­ is for world preeminence in general appli­ lic deny that the 1935 prohibition by Presi­ opium fields cations of technological innovation and pro­ dent Uzaro Cardenas del Rio will be lifted , ductivity." Meyers also suggests that the ci­ "some say in private it is inevitable," The A massive police raid inside the Soviet Union vilian applications of the SOl outweigh their News states. uncovered 170 opium growing fields cov­ military potential by 20 to I. "During the 1920s and '30s, celebrities ering 5 hectares, according to a recent report such as Clark Gable, Charlie Chaplin, Jean in Pravda Vostoka , the Uzbekistan party Harlow , and Douglas Fairbanks flocked to newspaper in Tashkent. 164 persons were Tijuana to frolic and gamble at its casinos. arrested, 5 of them party members summar­ Development The heyday of Tijuana casino gambling ab­ ily expelled from the CPSU. ruptly ended in 1935 when President Gen. Pravda Vostoka said that the ring uncov­ French farm group Uzaro Cardenas del Rio banned gambling ered represented "only the tip of the ice­ thoughoutMexico on the grounds that games berg."'The planting of opium yielding crops hits Wo rld Bank, IMF of chance were immoral. Times have has a long tradition here, and the large cities changed." guarantee a rising and lucrative market. " The French Federation of Agriculture(FFA) One kilo of opium fe tches 30,000rubles called for North-South cooperationin a new world economic order, in an editorial by on the black market in Uzbekistan. Oil FFA president Henri Gaullandeau in l' Ac­ tion Agricole de France. the mass organi­ zation's newspaper: Gulf leaders met Technology "We denounce the dictatorship of the on Iran-Iraq war World Bank,whi ch, through the IMF, con­ trols worldwide development policies . . . Soviet culture Leader of the six Gulf Arab states gathered and favors the interests of the five big food Nov. 2 in Abu Dhabi for a summit focused has S I trouble cartels. D on stopping "the very serious escalation" of "Those huge concentrations of econom­ the Iran-Iraq conflict, and formulatingjoint ic power exist through a bunch of devoted Soviet culture won't allow the use of an SOl measures to protect shipping. technocrats in Brussels and Washing­ program as a science driver, GeroldYonas, The Emir of Qatar, Sheikh Khalifa Bin ton ....Let us work to support those men until recently chief scientist of the SOl Of­ Hamad a1-Thani is quoted saying that the fice (SOlO), told syndicated business col­ who will care for the return of power to so-called tanker war is as serious as attacks umnistGary Meyers. sovereign nation states. Let those men be on civilian ships during World War II. There "Whatmost Americansdon't realize,but strong enough to bring the financial powers will also be discussion of expansion of cov­ the Kremlindoes , is that the U.S. is securing to their knees so they canresume theirprop­ erage by Saudi-owned Airborne Warning its civilian economic and technological lead er role to favor the development of mankind and Control System (AWACS) planes to all in the world for the next 20 to 30 years ," and not their own interests. six states. Yonas said. "SOl is a crucial link in the "We in the FFA imagine that world de­ chain of high-tech drivers that support that velopmentcan beachieved throughan econ­ lead. The Soviets can't keep up with that omy of contracts between developed and kind of movement. Their culture won't al­ Third world nation states; this would be fi­ Astronomy low it, their myths won't support it, and nancedby long-term andlow-interest loans." their bureaucracy can't tolerate it. Success Star gazer to be grounded on the necessary consumer sup­ port of a technology base is intolerable in built in Australia the Sovietstructur e." The InvisibleHand "When it comes to the SOl, it's not fu­ The world's most powerful and accurate in­ ture U.S. weaponry that the Soviets fear as Casino gambling strument for measuring stars is to be built much as the rapid development of American near Sydney, according to the city's univer­ high technology," says Meyers in his syn­ in Mexico? sity. The official Sydney University News dicated column in the Houston Post Oct. 25. said the stellar interferometer, estimated to The SOl could well be called the "Scientific 'Thereis increasing speculationon bothsides cost $1.5 million, would be built at Cul­ Development Investment," says Meyers , of the border that casino gambling will re­ goora north of Sydney. noting that defense dollars "are being spent turn to Mexico as a way to help wipe out the It would allow astronomers to measure more for the tools of high technology than nation's $96 billion foreign debt," wrote The the temperature, mass, and physical size of

14 Economics EIR November 14, 1986 J. Briefly

• JAPAN is looking for a way to reduce its trade surplus through in­ more than 50,000 stars . Previous interfero­ lost in the auto supplier field. vestments in Southeast Asia. meters could measure only about 50 stars. it None of the plants will be closed im­ said. Work on the three-year project. funded mediately, but will be slowly phased out of • CARGILL, one of the most no­ jointly by the university and the Australian production, according to the Detroit News. torious of the grain-cartelfirms , is the government, would begin in January. Some of the phase-outs could take as long largest private company in the United Several programs were planned for the as three years. States, with $32 billion in sales, giant instrument, including one to deter­ Company officials cite an "over-capac­ ranking twice as high as Koch Indus­ mine the distances to binary or double stars, ity" in auto production. OM lost $338.5 mil­ tries, the number-two company, ac­ known as cepheids, it said. Cepheids are lion in the domestic automotive market, · cording to Forbes Magazine's sec­ used by astronomers for determining dis­ which sliced into the company's overall ond annual listing of the 400 largest tances to galaxies. quarterly profit. private firm , OM also plans to cut its salaried work­ s force by a minimum of 25% by the end of • INDIA will negotiate with the the 1980s. United States for the purchase of a Domestic Credit Not all of the hourly workers at theplants supercompter. The United States has to be closed will be laid off. Many have agreed to the sale in principle, pro­ transfer rights to other plants and will be Occidental now viding New Delhi can provide assur­ eligible for displacement training. ances that the sophisticated technol­ in trouble? Union officials charge that the closings ogy will not slip into the hands of the are a way for OM to put pressure on the Soviet Union. The technology, a Standard & Poor's has placed about $7 .5 UAW beforecontract negotiations begin next computer that is superfast in compu­ billion of the debt and preferred stock of year on a new labor contract. The old con­ tations , could also be used to design Armand Hammer's Occidental Petroleum tract expires in September 1987. nuclear weapons. U.S. officials company on its "Credit Watch List. " The therefore described the pending ne­ move is said to have "negative implications" gotiations as certain to be "long and for Hammer and his company. hard." The rating company said that Occidental Usury faces "$ 1.5 billion in potential claims and • SOVIET TRADE Minister B. I. prolonged weak energy markets." Moody's Aristov received a Japanese business gave similarreasons for openinga review of Egypt capitulates delegation headed by Y. Mimura, Hammer's debt. to IMF • • • again chairman of the boardof directors of The potentialclai ms, so far, arethe $724 theMitsubishi Corp., on Oct. 16. The million damages award against the company An Egyptian delegation to the IMF and delegation is in Moscow to take part by a Wyoming jury,and the Colombian tax World Bank has agreed to all conditions de­ in the Japan-86 tradeand industryex­ man's claim of $800 million owed to that manded by the two agencies of international hibition. state's treasury. usury, according to Cairo's AI-Ahali news­ paper. In return, the United States will in­ • MEXICO'S LABOR Congress creaseinvestments in Egypt, says the paper. protested the government's decision The IMF will only extend short-term to sell 34% of banks nationalized in The Recovery loans for various IMF-sponsored projects, 1982 back to privateowners, on Nov. not cash loans as demanded by Egypt. The 5, saying the move will ''put the GM to close plants, negotiations centered on Egypt's next Five Church in Luther's hands," and the Year Plan. The for will return to th lay-offthousands government's demand banks e old vices of lower interest rates on U.S. military loans promoting capital flight. The Con­ (from 13% to 6%) met with strong objec­ gress said the government should in­ General Motors has announced plans to close tions from the United States and the IMF. stead shut down the exchange houses five assembly and three stamping plants to The IMF suggested postponement on these which have been acting as "private cut costs and reduce production capacity. debts. banks ." As many as 26,750 hourly workers could be As part of the deal , Egypt will create a left without jobs by the move. free zone in the new I;>amietta Port area. • THE UNITED STATES has de­ Theplants include four in Michigan, with Egypt will be given a $600 million loan cidedto abstain, i"atherthatvote "no," 16,850 workers, and those in St. Louis, Mo. , fromthe World Bank. The first$200 million on a proposed $250 million World Norwood·and Hamilton, Ohio, and Willow will go for small farms and development of Bank loan to Chile. European gov­ Springs, III. totaling 9,000UAW workers. agricultural land. Some industrial growth ernments are now expectedto vote in It is projected, however, that for every will be permitted within Egypt's agricultur­ favor. job lost in the auto assembly field, three are al reform program.

EIR November 14, 1986 Economics 15 �Operation Juarez

How many jobless are there really in lbero-America?

Real unemployment in the labor force It is no secret that the labor force of Ibero-America is ineffi­ Part 11 ciently employed, but the magnitude of the misemployment and hidden unemployment is generally seriously underesti­ Ibero-American integration mated. For the purposeof realistically estimating the number of new, useful jobs required by the year 2000 and 2015, one Taking into account unemployment in ag­ must quantify not only presently recognized unemployment riculture and misemployment in unnecessary (nominal unemployment), but all forms of disguised unem­ services, the true level of joblessness in Ibero­ ployment. While any measures used for this calculatio� are America is 35%. That means that more than of necessity approximations, the following figures give a a third of the most important resource of the very good idea of the general magnitude of the true unem­ continent, its labor ployment problem in the subcontinent. Moreover, the meth­ power, is not con­ od employed to make these calculations indicates the proper tributing to creat­ way todetermine the real unemployment rate, definedas that ing wealth. percentage of the total labor force which, for one reason or The Sch1ller In­ another, does not contribute (or scarcely contributes) to the stitute's book,Ibero­ production of real economic wealth. American Integ ra­ Offi cial unemployment is naturally the first category of tion: 100 Million any total unemployment calculation. In lbero-America these New Jobs by the figures are very unreliable, and quite often do not exist for Year 2000, was the country as a whole, but only for the major cities. For published in Span­ example, since 1980, the official unemployment figures for ish in September most lbero-American countries show very slight rises in un­ 1986. An international team of experts pre­ employment, with the exception of figures from Colombia pared this study on the urgent measures and Chile which more accurately reflect the impact of the needed to free Ibero-America of its economic austeritypolicies and economic stagnation which hit all coun­ dependency, elaborating the outlines of Lyn­ tries. This failure to officially register the known post- 1980 don LaRouche's 1982 proposal, "Operation increase in unemployment casts doubt on the validity of the Juarez." figures for 1980 as well. However, due to the absence of a This week EIR 's exclusive English-language ready means to correct the official figures , we begin our serialization of the book concludes Chapter reconstruction of the real unemployment situation by using 4. Numbering of graphiCS follows that of the the official unemployment figures, as compiled by the ILO book. subgroupPrograma Regional del Empleo para America La­ tina y el Caribe (PREALC), "Dinamica del subempleo en

16 Operation Juarez EIR November 14, 1986 TABLE 4-5 Underemployment in agriculture 1980

Agriculture Agricultural Appropriate Underemployment Underemployment labor value agricultural Underemployment In agriculture In agriculture forcet added* labor forcet In agriculture (thousands) (according to ILO)* (1 ) (2) (3) (4) (5) (thouunds) (8)

Argentina 12.0 8.8 17.6 0.0 0 164 Brazil 30.6 13.0 26.0 4.6 1,989 4,789 Colombia 33.7 19.4 38.8 0.0 0 743 Chile 16.3 7.4 14.8 1.5 53 125 Mexico 26.1 8.4 16.8 9.3 2,203 1,392 Peru 39.3 8.5 17.0 22.3 1,147 865 Venezuela 15.0 5.7 11.4 3.6 176 294

tPercentage of EAP *Percentage of GOP 'Sources: Regional Jobs Program for Latin America and the Caribbean (PREAlC), subgroup of the International Labor Organization (llO).

America Latina," (1981), p. 26, and as reflected in Table 4- The results areillustrative, but unsatisfactory as a final 80np. 20. calculation in a number of cases, for reasons that require a It is well-known that despite large-scale migration to the more detailed investigation than could be conducted on the cities of Ibero-America, a large portionof the labor remaining basis of available data. The principal difficulty. lies in the on the land is underemployed, either working for only por­ overly high proportion of total GDP officially attributed to tions of the year and idle the remainder, or employed in such agriculture in several countries, notably Brazil and Colom­ low productivity tasks on the land that their contribution to bia, which apparently results from the effect on national output is almost negligible. In either case, the best measure accounts calculations of internal pricings that artificially in­ of underemployment in agriculture is the relative productiv­ creases the relative prices of agriCUltural products. Clearly, ity of agricultural labor compared to the productivity ofthe Colombia has a substantial underemployment problem in economy at large. Comparisons with other countries, both agriculture, which is at variance with the figure of 0 derived developed and newly industrializing, suggests that agricul­ above. Possibly, its total value of agricultural production is tural labor as a percentage of total labor force should be no significantly lower than the reported 19.4% of GDP, which morethan double the percentage of agricultural value added would explain the discrepancy. Brazil likewise undoubtedly as a percentage of total GDP. This percentage holds true not has many more than 1,989,000 underemployed agricultural only for South Korea, acountry which has successfully shift­ workers , given that there are entire regions of the country ed from being largely an agrarian eoonomy to largely an populated principally by millions of subsistence and sub­ industrial one, but also for the major European countries (in subsistence farmers. theUnited States, due to very capital-intensive farming, ag­ Consequently, to derive a usable estimate for agricultural ricultural labor producesmore thanits share of total GDP) . unemployment, we were forced to use a conceptually less Consequently, we applied this formulato derive estimat­ satisfactory methodology which provided somewhat more ed agricultural underemployment, as reflected in Table 4-5. consistent numbers. The PREALC-ILO study cited above Column 1 is the percentage of total labor force officially adopted a methodology based on assuming that all traditional reported in agriculture; Column 2 is the percentage of total agriculture involved some degree of underemployment, and GDP in agriculture; Column 3 is two times Column 2, rep­ it measured the rate of underemployment by how farbelow resenting the maximum healthy percentage that agricultural the poverty line the average agricultural worker fell. Using labor ought to be of the total labor force; Column 4 is the the PREALC estimations, we derivedthe numbers in column percentage now working in agriculture above what is appro­ 6 of Table 4-5 (and in Column 3 in Table 4-8) for agricultural priate (i.e., thedifference between Columns 1 and 3, if great­ underemployment. We consider it quite likely that the esti­ er than zero); and Column 5 is the total number of such mation for Mexico is too low, though the other calculations actually underemployed persons in agriculture, which was appearreasona ble. derived by multiplying Column 4 by the total economically If the above-mentioned shift from agriculture directly active population. into services, bypassing the stage of industrial employment,

EIR November 14, 1986 Operation Juarez 17 is the major structural problem of the Ibero-American econ­ Consequently, to calculate this magnitude, we examined omies, it follows that a very significant portionof the work­ the pattern of employment shifts of South Korea, one of the force nominally employed in services is in fact superfluous, most successfulof the formerly underdevelopedcountry which whether or not the workers are ostensibly employed in full­ succeeded in industrializing over the past 20 years. Table 4-. time jobs. Thus we identify misemployment in services as 6 is based on the same data as Figures 4-3 and 4-4. (Part 10, composed conceptually of three categories: those physically EIR , Nov. 7, 1986) It shows that between 1960 and 1980, employed only part-time, or for only part of the year, those 32% df Souih Korea's total labor force shiftedout of agricul­ employed in obviously marginal occupations epitomized by ture, 20% going into industry and only 12% going into ser­ the proliferation of street vendors and other examples of the vices. In other words, approximately two-thirds of the total "informal economy," and those employed as white-collar shift went into industry and only one-third into services. employees in excess of any reasonable requirement for such We calculated excess employment or misemployment in occupations. services for the Ibero-American nations by assuming that a

TABLE 4-6 Calculating misemployment in services (percentage of EAP)

1950-1980 variation using proportions 1950-1980 of South Mlsemployment 1950 1980 variation Korea In services (1) (2) (3) (4) (3-4) South Korea Agriculture 66.0 34.0 -32.0 Industry 9.0 29.0 +20.0 Services 25.0 37.0 +12.0 Argentina Agriculture 25.3 13.1 -12.2 -12.2 Industry 30.8 28.0 -2.8 +8.1 Services 43.9 58.9 +15.0 +4.0 11.0 Brazil Agriculture 59.7 29.9 -29.8 -29.8 Industry 17.1 24.4 +7.3 +19.9 Services 23.2 45.7 +22.5 +9.9 12.6 Colombia Agriculture 56.8 25.8 -31 .0 -31.0 Industry 17.8 21 .2 +13.4 +20.7 Services 25.4 53.0 +27.6 +10.3 17.3 Mexico Agriculture 61 .2 26.0 -35.2 -35.2 Industry 16.2 20.3 + 14.1 +23.5 Services 22.6 53.7 +31 .1 +11.7 19.3 Peru Agriculture 58.2 36.4 -21 .8 -21 .8 Industry 19.6 16.1 -3.5 +14.5 Services 22.2 47.5 +25.3 +7.3 18.0 Venezuela Agriculture 43.0 18.0 -25.0 -25.0 Industry 20.9 26.6 +15.9 +16.7 Services 36.1 55.2 +19.1 +8.3 10.8

"Economically active population tSouth Korea figures correspond to period 1960-1 980 Source: World Bank.

18 Operation Juarez EIR November 14, 1986 women, who are not even included in the labor force (EAP) , TABLE 4-7 but who should be, as they are in properly developing and in Mis-employment in services developed countries. This is reflectedin the fact that, in the 1980 developedcountries today, 40-45% of the total population is economically active; in South Korea, the percentage is 39%. Economically Mis-employment Mis-employment But all the ' major countries of Ibero-America have much active population In services In services (millions) (% of EAP) (millions) lower levels of total participation in the EAP, ranging from 36% for Argentina to 31.5% for Mexico. While the greater Argentina 10.2 11.0 1.1 proportionof children in the labor force, and the greater need Brazil 42.7 12.6 5.4 for women to remain in the home to care for house and family, Colombia 8.4 17.3 1.5 partially help explain these lower numbers, it is only part of Chile 3.5 14.4 0.5 the picture. It is without doubt that, were more jobs available, Mexico 21 .9 19.4 4.3 a large number of women would leave the home to work Peru 5.0 18.0 0.9 outside, at least part-time. The number of jobs that women Venezuela 4.9 10.8 0.5 now in the home would take, were they available, represents Other countries 20.0 11.6 2.3 a furtherform of disguised unemployment, or enforced un­ lbero-Amerlca 116.6 14.1 16.5 employment. Were the total participation rate in the labor force to grow

Sources:ECLA and authors' estimates. from its present 32.7% average for lbero-America to the 40% that is the lower limit of participation rates for developed countries, 26 million new jobs would have to be created. However, due to the impossibility of reliably determining similar 2: I shiftof agricultural employment into industry and what portion of this 26 million could realistically be imme­ services would have represented a healthy development pat­ diately added to the labor force, and be available for employ­ tern over the 1960- 1980 period. We then measured the de­ ment, we have not included it in our calculation of under­ viation from this· norm as the magnitude of misemployment and unemployment. However, in our projections to 2000and in services (and, necessarily, the deficit of employment in 2015, it is assumed that they join the EAP, which thereby industry). Column 3 shows the percentages of total EAP that rises to 40% of the total population, and that they are then left agriculture for industry and services, respectively, while employed. Column 4 shows what ,thosepercentages would have been in A further disguised unemployment of the same nature' Ibero-Americahad two-thirds of the shiftgone into industry, as in the South Korean case. Column 5, derived by subtract­ ing Column 4 from Column 3, is thus the percentage of total EAP now misemployed in services beyond the healthy (South Korean) level indicated in Column 4. Table 4-7 multiplies the total economically active popu­ lation (EAP) by the percentage derived in Column 5 of Table 4-6, to give the total number of service workers in each country who are employed in excess of that sectors healthy requirement for employment, who should be considered part of misemploymen.t or disguised unemployment, from the standpointof calculating the number of useful jobs that must becreated in the future. It should be noted that even if productivities had remained low, just the mere addition of these 16,450,000misemployed service workers to industry, would have represented a tre­ mendous boost to the economies of lbero-America. That number is about equal to the total number of 1985 manufac­ turing workers, and is almost two-thirds of the entire em­ ployment in industry today. Employing them thus would have increased the production of tangible goods by at least

75% more than current output. A street vendor in Lima-an example of the many lbero­ A final category of disguised unemployment must be Americans misemp/oyed in unnecessaryservices. Such jobs would noted. There are today a large number of people, mainly no longer exist in an industrial society.

EIR November 14, 1986 Operation Juarez 19 TABlE 4-8 Nominal and real unemployment in Ibero-America 1980 (millions of persons, and percentage of EAP")

Nominal Underemployment Mlsemployment Reai EAP unemployment In agriculture in services unemployment ' ; : • j Argentina 10.2 0.2 (1.8%) 0.2 (1.6%) 1.1 (11 .0%) 1.5 (14.4"IJ); Brazil 42.7 1.2 (2.9%) 4.8 (1 1 .2%) 5.4 (12.6%) 11.4 (26.7%) Colombia 8.4 0.4 (5.2%) 0.7 (8.9%) 1.5 (17.3%) 2.6 (31 .4%) Chile 3.4 0.3 (9.0%) 0.1 (3.6%) 0.5 (14.4%) 0.9 (26.9%) Mexico 21 .9 0.9 (4.3%) 1.4 (6.3%) 4.3 (19.4%) 6.6 (30.0%) Peru 5.0 0.3 (6.7%) 0.9 (17.3%) 0.9 (18.0%) 2.1 (42.0%) Venezuela 4.9 0.2 (4.2%) 0.3 (6.0%) 0.5 (10.8%) 1.0 (21 .0%) OtherCountries 20.0 1.1 (5.1%) 1.9 (9.5%) 2.3 (1 1 .6%) 5.3 (26.2%)

IberG-Amerlca 1980 116.6 4.7 (4.0%) 10.3 (8.8%) 16.5 (14.1%) 31 .4 (27.0%) lbero-Amerlca 1985 133.8 10.6 (7.9%) 12.7 (9.5%) 23.4 (17.5%) 46.7 (34.9%)

"Economically active population Sources: United Nations and International Labor Organization. concerns youths of the 15-18 year old age bracket, of which farfe wer are counted in the labor force than have left school FIGURE 4-6 and are therefore employable. It can only be assumed that Population and employment in Ibero-America this stratum is not in the labor force because of insufficient 1960-1985 job opportunities. This factor is also adjusted for in our pro­ (millions of persons) jections. 399.8 Table 4-8 summarizes the three basic components of real unemployment: official unemployment, agricultural under­ 356.8 employment, and urban misemployment in services. The totalnumber of actually unemployedin 1980 was 31,410,000, or 26.9% of the work force-clearly much higher than any 278.8 standardcalculations indicate. 246. 1

However, even this picture has becomemuch worse since 212.6 214.4 1980, because of stagnation of most areas of the economy since that time. Given that, from 1980 to 1985 production 159.5 did not noticeably increase, we can conclude without doubt 1 33.8 that theentirety of the increasein the labor force in that period went to increase real unemployment; that is, produced no new wealth. Thus, in 1985 the total real number of unem­ 35.4%" ployed in Ibero-America stoodat approximately46 .7 million people, nearly 35% of the laborfor ce. In other words, over 1960 1970 1980 1985 one-third of the continent's entire workforce is notproducing any economic wealth, i.e., it is de fa cto unemployed (see T01al population Flgure4-6). Working-age population (15m:64) The productive employment of this idle labor force de­ Economically active populalton fines one of the most urgent tasks of development under the Total unemployment lbero-American Common Market. Effective employment

Next week begins Chapter 5, "The development of em­ ·Percentage of the working-age populatIon ployment and productivity. " Sources: ECLA and authors' estimates.

20 Operation Juarez EIR November 14, 1986 The magazine for people In Defense Policy who believe in scientific progress and as a Military Phenomenon

• Fusion has fought an 11- year battle for fission and fusion by Professor power, against the environmentalists Friedrich August and budget-cutters; Frhr. von der Heydte • Fusion is campaigning internationally for high-technology industrial development, against the zero-growthers; • Fusion advocated a beam-weapon defense system as early as Order from : 1977-the program now known as the Strategic Defense Ben Franklin Initiative; Booksellers, Inc. • Fusion advocates the colonization of the Moon and Mars-'­ 27 South King St. but why stop there? Leesburg, VA 22075 Subscribe Now! $9.95 plus shipping o $20 (1 year-6 issues) ($1 .50 for fi rst book, o $38 (2 years-12 issues) $.50 for each o $40 (1 year-foreign air mail) additional book.) Bulk rates available. Order from: Fusion Energy Foundation, P.O. Box 17149, Washington, D.C. 20041-0149

Friedrich Schiller Poet of Freedom :\ collection of poems. plays. and prose writings. in m:w transla tions by members of the SchilIL:r Institu te.

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Food irradiation isfinally a commercialpossi bility

Dr. John Cox, a laser physicist pioneering in the use qfx-rays jo r jo od irradiation, is interviewed by Marjorie Mazel Hecht, managing editor qfFusion magazine.

Fish that stays fresh in the refrigerator for two or three weeks, lags behind the rest of the world in commercialization. Also, pork that is trichina free, strawberries that don't go bad, internationally accepted food irradiation standards permit 10 potatoesthat don't sprout, and grains that don't get mealy­ times the amount of irradiation permitted by the FDA-adopt­ this is thepromise of food irradiationthat can now be deliv­ ed regulation. ered. Most of the food irradiation plants now operating use Forty years of research have demonstrated that food ir­ cobalt-60 as their source of irradiation. The ionizing energy radiation is an effective and wholesome means of dis infesting from the decaying radioactive cobalt source sends very short foods and prolonging their shelf life. Finally, in April 1986, wavelength gamma rays into the food or produce being ion­ after five years of investigation, the U.S. Food and Drug ized. The gamma rays penetrate inside solid particles and kill Administration issued a regulation permitting low dose (100 microorganisms by breaking down the cell walls or destroy­ kilorad) irradiation of fruits and vegetables, and thus allow­ ing the metabolic pathways of the organism so that the cell ing U.S. consumers to reap the benefits of this technology. dies. At higher doses, all microorganisms are killed, steriliz­ The FDA also issued a regulation permitting low-level irra­ ing the processed food. diation of fresh pork, thus making possible the elimination There is no radioactivity induced in the processed food. of trichina. The chemical reaction caused by the gamma rays does not

Now, the go-ahead is expected soonfor high-dose steri­ involve the atomic nuclei of the food, and therefore the atom­ lization of foods. Radiation sterilization, the same processs ic structure of the molecules is not changed. that is used toprepare the food the astronauts eat in space, Irradiation facilities for processing food or medical sup­ allowsfood to bekept indefinitelywithout freezing or refrig­ plies are not elaborate. There is a radiation source with its eration. Thismeans that in yearswhen harvests are bountiful, shielding, a conveyor system that transports tne produce to produce can be harvested, bagged, and irradiated to keep and from the source, and various control systems to manage indefinitely without refrigeration. How does it taste when the processing, and storage facilities. Usually the cobalt-60 used much later on? The astronautswill tell you that it's fine. is embedded in pencil-thin rods, which are then submerged In the developing sector, food sterilization would make it in a well of water that serves as a shield. The dose of radiation possible for the processingof available crops and meats and received depends on the time of exposure and on the prod­ theirstorage at one-fourth the cost of canning. uct's distance from the source. Twenty-eight countries now have approved the use of Another method that has been researched but not yet food irradiation for 40 different food products. In fact, the commercialized is using accelerated electrons as the source United States, which has pioneered the technology, actually of ionizing energy.

22 Science & Technology EIR November 14, 1986 Interview: John Cox

X-rays offer a new approach to the irradiation of food

Dr. John Cox is president of FutureTech Industries, Inc. in not only the intensity of the source, but also the x-ray energy. Gainesville, Florida. He was previously a research scientist And the energy from the source will dictate on a macroscopic at the University of Florida and workedfo r U.S. Army Bal­ level the way in which the radiation is absorbed in the food . listic Missile Defense and fo r the National Aeronautics and Space Administration to develop high-energy nuclear-pow­ Q: What is the difference between the intensity and the en­ ered lasers. He has also developed a comprehensive college ergy? course on lasers available on video cassette. Mrs. Hecht Cox: To give you an example, it's like the photoelectric interviewed him on Sept. 17. effect where you can shine all of the red light that you want on metal and it won't eject an electron. In other words, you Q: When did you begin working on the idea for food irradia­ can increase the intensity as much as you want; it won't cause tion with x-rays? any ionization. But, if you go from red to blue light-it Cox: It waseven before I started FutureTech, in November doesn't matter how weak the blue light is-as soon as one 1984. I was sitting around the cafeteria with two other faculty blue photon hits the metal, it will eject an electron. So it's members and we were kicking around the idea about food the photon frequency (which is proportional to energy) that irradiation. We had just gone to a seminar given by the makes a difference. This is a very rough analogy, because in Florida Citrus Council at our department, and we were dis­ the context of absorption of the x-rays at various energies in cussing the idea of a continuous-duty x-ray machine, similar matter, it's not quite that spectacular a difference. Ionization to that used at airports to scan luggage. We thought an x-ray occurs with all x-ray energy. The higher the energy, the machine poised over a conveyor belt, irradiatingfood , would greater the penetration depth to the food or into anything be a very good idea because it would mitigate some of the really, no matter what it is. logistical and economic problems associated with dealing For example, if you wanted to take an x-ray of a human with a radioisotope source. Another device that is being stud­ chest, you would probably use something on the order of a ied for this use is a high-energy electron accelerator. 100,000-electron-volt x-ray. But if you wanted to shoot We formed a company called Citrex Technologies, Inc., through steel, you might want to use a I-million-electron­ and wrote a grant proposal in March 1985 to the U.S. De­ volt x-ray. There is another curious thing. All the electro­ partmentof Agriculture under the Small Business Innovative magnetic charts that show the spectrum always show gamma Research program (SBIR). They accepted the proposal, and rays as being more energetic than x-rays. Well, that's not by September 1985, we were under way. We got a $50,000 true; you can make x-rays with 10 million electron volts if Phase I research grant. For six months, we did a study of the you want. In other words, there's very little in the way of disinfestation of Florida grapefruit. limitations in terms of forming x-rays. X-rays and gamma rays are identical from the context of what they do to matter Q: You've had about a year of research now on your idea; when they interact. It's just a definition: X-rays are defined how far have you come? as originated by electrons and gamma rays are defined as Cox: There are several things. First of all, you can control originating in the nucleus. Other than that definition, there is an x-ray source to a far greater degree than you can control a virtually no difference in how they interact with food;they cobalt source. You can't really control the emission from the interact on an equal basis. radioactive source, you can't control things such as the en­ ergy of the particles and so forth that come out. Q: So you are really saying that you can create x-rays of certain frequencies that will act in the same way as the gamma Q: I think with cobalt-60 irradiation, all that they can do is irradiation from a cobalt source. put the food closer or farther away from the source. Cox: Yes. For instance, supposethat you had a cobalt source Cox: Right. But with an x-ray source, you can can control that was emitting I-million-electron-volt gamma rays. You

EIR November 14, 1986 Science & Technology 23 could concoct an x-ray source that would produce the same sort of energy- I million electron volts-that's commonly done . Now, as far as the food is concerned, it doesn't matter if it is being hit by an x-ray or a gamma ray; there is no qualitative nor quantitative difference between them. Now , one of the main differences we wanted to focus on is that a cobalt source would produce a mono-energetic spectrum. In other words, they make only one energy or two discreet energies, in contrast to the x-ray , which produces a broad spectrum containing many x-ray energies. Utilizing a spec­ trum of energies, you can get different effects than you can by using a mono-energetic source. This is another reason that you can control the effect with x-rays better than you can with cobalt.

Q: With the x-ray source, would you have a computer that would set the emission for whatever the particular food prod­ uct? Cox: You wouldn't even need a computer to do that. You would study each food group and once the correct emission was known, it would never change; you would just tum a knob on a set for treating bacon, or cooked stew, or potatoes, and so forth . It would all be established up front after a year or so of study, and each food group would have to be studied separately. I was talking earlier about the inability to control what Low doses of radiation have destroyed trichinae in the pork cubes picture here. the cobalt, of course , does to the food . With the x-ray ma­ extended the shelflife of the strawberries by delaying mold growth. delayed spoi/age of the highly perishable shrimp. chines, not only can you jump from one food to another, but and delayed maturation of the mushrooms and broccoli. without you can also control the amount of dose that is delivered to changing the texture andflavor or significantly reducing the skin of the food versus what is delivered to the bulk. This nutritional quality. . is a significant advantage . Especially with fruit, where you don't want to damage the peel trying to go after something in the core . Or maybe you only want to treat the skin, to get rid rays interacting in lead will generate those 10,000 ion pairs of fu ngus or bacteria on the skin only, then you don't want in a cubic millimeter, whereas in water it might be a cubic to deliver any dose to the middle, to the inside . You can centimeter. So the density of the absorbed radiation is differ­ greatly reduce the x-ray energy and just treat the skin. So that ent depending on the density of the matter. is another significantadvantage that we have that is not prac­ Now , the primary reason for going with x-rays was a tical or possible with cobalt or accelerator sources. logistical one and an economical one , as well as a psycholog­ ical one . There are many different facets. The idea is to build Q: It was my understanding that the food groups had been a quasi-portable device, one that could be brought to the thoroughly studied for the cobalt and cesium sources, per­ packing house. That is, we are going to reverse the role of haps a little less thoroughly studied for the electron acceler­ the food irradiator. Currently , if you have an accelerator or a ator sources, but what about x-rays? cobalt source, you need a multimillion-dollar fac ility. In Cox: X-rays fall in that broad sort of category . You can order to justify the cost of that facility, you need to have a make a general statement; that is to say, the effect of the high throughput. You have to bring the food to the facility, radiation on the food is not done by the primary particle, it is which means extra handling, and so forth . We have always done by the secondary particles generated by interactions. thought that food irradiation is really going to have a tremen­ For instance, a I-million-electron-volt gamma ray will gen­ dous impact on the Third World. It's going to have very little erate maybe 10,000 ion pairs in matter. An x-ray of the same impact in this country , since here you can pull out a frozen energy will do the same thing. It is those secondary particles dinner from your freezer, throw it into your microwave, and (ions) that do all of the work. So it really doesn't matter what in five minutes you 've got a dinner. That dinner was prepared you hit it with (when it comes to x-rays or gamma. rays). in the Midwest somewhere , it was delivered frozen to the What does matter is the density of the hits, how many parti­ grocer, and you put it in your freezer. The food was able to cles are interacting and the density of the object as to how far be grown on the farm , processed , packaged, delivered fro­ the particles will go before they slow down . For example, x- zen, and you eat it five minutes from the time when it was

24 Science & Technology EIR November 14, 1986 frozen solid. So that is one alternativeto food irradiation. In thingssuch as the initial tremendous investment, the need to the ThirdWorld countries, there is no alternative. transportand do the central packing. So it's not going to beat There is also a psychological hurdle that you have to it dollarfor dollar. It's going to beat it in the intangibles. In overcome, and as long as people h/ilve alternatives, they are the ease of handling, the training, the ability to move it less likely to take to any new thing. There are two things around and not to have to transport the food: Those are the against it: For one thing, people don't really like new things; kinds of things in which it is going to win. Economy-of-scale and second, people still don't understand the difference be­ is hard to beat. We are going to be irradiating 10,000pounds tween food that was contaminated at Chernobyland foodthat an hour, where cobalt irradiators can do many times that, has been irradiated. So, as long as there is an alternative, about 2,500 pounds per minute. We will never be able to people just aren't going to flockto food irradiation. However, have that kind of throughput. That's why we can't beat them in the Third World nations with no alternative, it's that or economically. nothing. And that's where it's really going to make a big impact. In order to transferthis technology to the Third World, Q: Why can't the x-ray source have that kind of throughput? you've got to have something that's cheap, inexpensive, and Cox: Even to process 5 tons an hour you need a megawatt user friendly. We are hoping that we can design this x-ray of electricity. Now, we are trying to get that down into the machine with those design criteria in mind. 100kilowatt range by coming up with a novel x-ray source, but right now, if we arestuck withjus t a small departurefrom Q: You are thinking of a portable machine that could be current technology, we are talking about enormous power trucked or put on a barge and taken to the place of harvest, consumption. Now to make a generator that produces a me­ so that you don't have to take the product of harvest to a gawatt, all you need is soy bean oil or peanutoil [fuel] to run central facility. . the generator. It's that simple. It's very energy-intensive. Cox: That's right. A centralized facility is not practical in . . . TheUnited States has beenstudying food irradiation nations where they don't have road systems and machines to for 30 years, maybe longer. It is that fact that gives us the load and unload tons of food . A lot of times, the food is most encouragement that we'll be able to slug through the processed in one place, at great distances from where it is legal and psychological implications of this project. If there grown; these distances would seem much nearer distances were some significant health risks-and many of those do here, but are great distances there because there areno roads. take 30 years to become established-that would have been These devices wouldn't be truly portable in the sense that evident by now. The evidence is clear that there are none. you could just plug them in anywhere; you'd have to perma­ And if we were starting fromscratch now, trying to promote nently mount it, put some shielding around it, and have an food irradiation without that body of knowledge, we would electric power generator with it, but it would at least be have a hopelesscase . amenable toward moving around from growing season to growing season, establishing it in different places. One ma­ Q: There are still people who believe in magic, not reason, chine could treat many different types of food. who think that the technology itself is harmful. Cox: There are people who believe that we didn't go to the Q: What is your ballpark dollar estimate on this? I know that Moon yet. You can always find that. But the psychological a cobalt-source food irradiation centralized plant that can aspect of this whole thing cannot be ignored. That's why I handle a high volume, from start to finish can be built for am convinced that it's the ThirdWorld that is going to utilize between $4 and $5 million. this technology, and that it will come back to us in the United Cox: Right. But there is an enormousoverhead maintaining States later. the facility. If you want to evaluate all of these different technologies-that is to say, the cobalt source, the acceler­ Q: In the developing sector they see that they need this ators , and our machine-you have to come up with a figure technology because they don't have food-50 to 60%of their of merit. And the figure of merit that everyone has agreed to crops go to waste. is the dollars it takes to irradiate or produce a given amount Cox: We'retrying to design this x-ray system with that in of radiation to a given amount of food: dollars per megarad mind: the idea that it can be moved around, that it can be ton. What does it cost to irradiate a ton of food at a given operated with virtually no skill, that it doesn't require all of megarad?In more bite-size figures, how much doesit cost to the highly skilled technicians that it takes to operate either a irradiate a pound of food? We are talking about a penny per cobalt source or an electron accelerator. pound. Q: Can you explain what happens when thefood moves by Q: What are the comparative figuresfor a cobalt source, an the x-ray source on the conveyor and in your prototype ma­ accelerator source, and your x-ray source? chine. How much powerwould it use and what would it look Cox: They are going to be on a par. However, that's not the like? whole picture. Once again, you've eliminated all of the extra Cox: It would looklike a bank of fluorescentlight fixtures.

EIR November 14, 1986 Science & Technology 25 It would be a rectangular box, if you will, the width of the That's the part that people don't understand. A lot of people packing house line, and maybe several meters long. The x­ say x-rays, you'rectazy, you can't do that, it's impossible. ray units would be mounted several inches above the convey­ It is impossible if you try to irradiate a pallet of foodat once, or belt, stacked up , so you might have 10 or 15 of them in a but since you are only trying to irradiate one layer of foodat line. The food rolls by on the conveyor belt afterit is washed a time, then you have enough energy to penetrate through or waxed or whatever. It would then be irradiated on the fly, that. and at the end of the conveyor belt it would be sealed and put in a box for shipment or whatever was required. Q: The difference is that, in the other sources, they do irra­ In my opinion, it is the advances in packaging technology diate the whole pallet, so the food moves by in greatvolume, that have really given food irradiation a boost. Without the very quickly. With the x-ray irradiation, you just have one packaging technology, food irradiation technology is of little layer moving byat a time. use and benefit. It is the fact that we can hermetically seal Cox: That's right. And if you're doing it on the fly, it's not food or any thing-a medical instrument, for example-in really causing a bottleneck in the process. It moves through plastics with machines which make it a much simpler process there at about a centimeter per second or something like that. than a canning process. It also takes less energy. In my It's a typical conveyor belt speed, optimized for whatever opinion, that is the main reason why the interest in fool machines or devices that are sorting or culling the produce. irradiation is being revived. Food irradiation alone is not the key; it's the marriage of the technologies between packaging Q: If you had something that was greatly dense-for ex­ and food irradiation that has really gotten things rolling. ample, if you were doing a whole side of pork-would you have to change the setting on it? Q: I know when they were beginning to work on food irra­ Cox: Oh, yes, we would have to increase the energy tremen­ diation in the army laboratory at Natick, Massachusetts, one dously. We'd have to go up to half of a million electron volts of the first things they did was work on materials for pack­ or greater to punch through a big piece of meat. Whereas, if aging and get those approved by the FDA . we were to irradiate bacon, we could get by with probably Cox: Now it turns out that the medical community has gone 100 kilovolts. to that technology for sterilization purposes, and a packaging technology has been developed forthat. The good thing about Q: So really, the system that you have described can do that is that it takes maybe a hundred times more radiation to anything just at the tum of a dial. sterilize than it does to process food , and the packages are Cox: Yes. Now, of course, we've got to design a new type designed for radiation dose levels l00-fold greater, so I am of x-ray machine. That is the premise we started with when convinced that we can expect that a very inexpensive pack­ we got the grant and decided to form the company: Somehow aging technology for food is available on the shelf. With that we were going to innovate, we were going to come up with a in mind, and knowing that the USDA and FDA have finally new machine, maybe an order of magnitude more efficient. approved food irradiation-it used to be considered a food We haven't done that yet, but we have a lot of good ideas. I additive, now it is considered a food process�I believe that expect with the talent that we can bring to bear on this idea, the legal implications will be mitigated to some extent and we'll solve it. If not, the whole concept may fail if we can't we can move ahead. get the x-ray machine to be moreef ficient. But I feel confident that we are not going to violate any laws of physics along the Q: I think that the permitfor food sterilization by irradiation way in trying to get it up there . It's not that we have to make is expected to be issued soon in the Federal Register. some kind of magic trick. We'll stretchthe limits of technol­ Cox: That is fortuitous, that all those things are coming ogy, but we're not going to violate some natural law of together at the same time. physics. We are studying new ideas, very novel and counter­ intuitive methods of producing x-rays. It's a great departure Q: Let's go back to the food on the conveyor belt. You have from current x -ray production technology. about 15 of these x-ray units lined up horizontally, and the food moves underneath them at a steady rate . Q: It sounds good. I can't wait for the technology to become Cox: These things would not take up enormous room in the commercialized in the United States. processingplant, they would sit up over the conveyor belt in Cox: All of those things will come to pass; it's a question of a line, and there would be a shielding box built around them, when. It's going to take a champion, a corporation or an just like the shielding box around the conveyor belt systems entity to promote this. It's going to take a marketing effort. at the airports . You don't really need a bunker as you would Just like selling tissues or anything else, it's got to be sold. with an accelerator. The shielding could be expressed in terms of inches of lead, 1 inch or something like that, of Q: In other countries, when they put irradiated products on metal . the market, in Israel or China, for instance, those things sold Now, we're not trying to irradiate an entire pallet offood. out because people wanted the clean produce. When they

26 Science & Technology EIR November 14, 1986 irradiated onions in Bangladesh, for instance, those onions sold out so fast that nobody had a chance to show that they could stay on the shelf for months without sprouting. Cox: Right. I have a feeling that by brute force it will over­ come opposition and people will accept it. Right now, we.are studying the disinfestation of grapefruit from the Medfly and the Caribbean fru it fly. We are also looking at eradicating pests from tobacco. (I don't like tobacco, but I am a business Livermore announces man.) We are also looking at potatoes, to inhibit the sprout­ ing. And we are also considering mangoes as well. Mean­ while, we are continuing to strive to produce a new type of accelerator advance x-ray generator that will be configuredfor the job. by Robert Gallagher Q: What is your deadline on this? and Charles B. Stevens Cox: I'm hoping that, in a year, we will have a prototype of a working device that can be scaled up into a food irradiator­ type application capable of processing 5-10 tons of food per A research team at Lawrence LivermoreNational Laboratory hour. (LLNL) reported an important breakthrough in the technol­ ogy for acceleration of electron beams in the Sept. 29, 1986 Q: What are the background of the people working with issue of Physical Review Letters. They declare that their you? recent work with the Livermore Advanced Test Accelerator Cox: There are two nuclear engineers with Ph . D. s, two food (ATA), "should permit the extension of high-current [elec­ crop specialists with Ph. D. s, two entomologists with Ph . D. s, tron] induction accelerators to arbitrarily high energies." The an organic chemist with a Ph .D., a microbiologist with a ATA is an experimental accelerator for driving free electron Ph .D., and electrical engineers as well. So we've pretty well lasers, or for an electron beam terminal defense system. got the bases covered, most of them are faculty from the Previously, the energy (or speed) to which high-current University of Florida. I expect we have enough firepower to electron beams could be accelerated by the linear induction solve the problem. Right now we are getting into Phase II of accelerator pioneered at LLNL, appeared limited by the the SBIR program, with $200,000 in funding, giving us a growth of a beam-accelerator interaction instability known total of a quarter of a million dollars of USDA money. We as "beam break-up" (BBU), which grows as the beam is are also going after other grants to study other foods, grants accelerated to higher and higher energies. Beam focusing from the particularfood producers or the USDA. with externalmagnets is insufficientto prevent the beam from literally thrashing against the walls of the accelerator, unless Q: Is the fishindustry in your area interested? monstrously large solenoidmagnets whose engineering fea­ Cox: Well, it turns out that you need about 10 times or even sibility is questionable, are applied. Experiments in beam greater amount of radiation to treat meat than you do to treat propagation conducted in the AT A, indicated that the ma­ vegetables. So, while I can see how we can easily treat the chine could not achieve its design specificationsof producing fruit and vegetables, meat is another challenge to me. Meat a lO,OOO-ampere-current, 50-million-electron-volt (50 MeV) is going to be 10 times more difficult forus to compete with electron beam. Beam break-up destroyed the beam before it processing, than it will be to do fru its and vegetables. ever reached those power levels. As the LLNL team reports:

It is clear that operationof ATA at its design value Q: Even if your machine could only process fruits and veg­ of 50,ooo-amperes with 3,ooo-Gauss solenoid focus­ etables, and maybe grain, that would be a tremendousboon ing, is not possible ....[In] an attempt to propagate for the Third World. a 7,ooo-ampere beam through ATA by use of sole­ Cox: You can't be everything to everyone. On the other noidal guiding, BBU grew to such an extent that it hand, if we do solve the problem and we can get an order of caused the tail of the pulse to hit the beam pipe. As magnitude increase in efficiency, that will be a major break­ a result, only half of the injected [electron] charge through. I do need to mention that typical electron efficien­ survived through the accelerator, and the large, trans­ cies using traditional bremsstrahlung emission devices are verse centroid displacement [from the accelerator axis] about 1 % efficient. The accelerators can move that up to as a function of time at the accelerator exit, rendered about 10%, using lO-million-electron-volt electrons to pro­ the beam totally unusable. duce them. We are trying to produce a bremsstrahlung x-ray spectra at 100 kilovolts energy with 1 % efficiencies. If we If high energies cannot be achieved with high current, can do that, that will be a major breakthrough in the science the prospects of using linear induction accelerators to drive of x-ray production .... free electron lasers at the power and wavelength require-

EIR November 14, 1986 Science & Technology 27 ments for strategic defense, would appear dim. Furthermore , without mastering the beam break-up instability-in which the beam opens up roughly in the shape of a hom because of a nonlinear growth of transverse beam motion-the gen­ eration of well-collimated and focused electron beams for both free electron lasers and terminal defense , becomes an elusive goal . The Livermore team developed a technique they call "electrostatic [plasma] channel guiding" with which "the beam break-up instability ...was reduced by three orders of magnitude ." They turned off their solenoid magnets, and used a low-density plasma to focus the beam. Low-density benzene gas was fed into the accelerator chamber. Then, a short pulse from a low-power krypton­ fluoride laser was used to ionize the gas 1 %, and transform it into a low-density plasma. As the electron beam passes through the plasma, the plasma acts to focus the beam and dramatically diminish its transverse motions. Plasma-electrostatic focusing improved the output of the

ATA with a concomitant reduction in operating costs. As A Lawrence technician works to assemble the electron injector at Livermore's Energy and Technology Review reported in the Advanced TestAccelerator (ATA), a $55 million, 50 million March 1985: electron-volt, 10,OOO-ampere linear electron beam accelerator.

Upon entering the zone where the strong electro­ static fields [produced by the benzene plasma] are in effect, the electron beam is focused to a smaller radius, Indeed, if the spread ...is sufficiently great, accel­ since the electrostatic focusing fields are three to four eration to arbitrarily high energy is possible without times stronger than the 3,OOO-Gauss fields of the ATA any BBU growth whatever. solenoids. . . . With electrostatic guiding, the full beam These advances have yielded a new generation of linear current pulse is preserved through the entire length of induction accelerator technology. The AT A with electro­ the accelerator. ...For the ATA , our O.4-joule laser static channel guiding, is not a mere scale-up of the 5-Me V is now allowing better electron beam transport than Experimental Test Accelerator that powered the Livermore is possible with our conventional axial magnetic so­ free electron laser and produced impressive free electron lenoids that produced 67 ,500joules of magnetic field laser gain and efficiency results last spring . The "new ATA" energy. is a machine based in part , on more advanced physical The strong electrostatic fields established by the benzene principles of operation . The new Livermore free electron plasma differentially affects the electrons of the beam. The laser driven by this ATA technology, and expected to also helical "betatron" oscillations of the electrons about the include parabolic magnets for improved beam control in the accelerator-plasma axis, increase in frequency for electrons lasing or "wiggler" region of the machine, holds great prom­ closer to the axis, reported Energy and Technology Review ise as a second-generation free electron laser. In other words , electrons farther from the beam axis, spiral In light of the Livermore report, there appear to be no in a helix with a lower frequency than those close to the limitations on the energy and power (the product of energy axis. Through the cross-section of the beam, there is and current) for electron beams produced by linear induction consequently a spread in the betatron frequency or "wave accelerators . If beams as finely collimated as Livermore number." Such a frequency spread occurs in water vortices claims it can produce, can be generated with energies on whose angular velocity slows with distance from the vortex the order of 100 to 200 MeV, gigawatt-power free electron center. Electrostatic channel guiding thus appears to trans­ lasers in the visible and even the ultraviolet region, might form the beam into a coherent differential-velocity vortex­ be achieved in less than a decade . Stanford University's filament. John Madey explained before a Conference of the Society This phenomenon is quite significant, reports the LLNL of Photo-Optical Instrumentation Engineers in 1985: group in Physical Review Letters: With a bright enough electron beam, a collective The spread in the betatron wave number, due to instability occurs in the free electron laser, which re­ the nonlinear restoring force of the channel, has pro­ sults in exponential growth of optical power with in­ found implication for the beam break-up instability. teraction ["wiggler"] length.

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California's Proposition 64 has shaken the world

by Wa rren J. Hamerman

Presentation to the Patriots fo r Germany conference on AIDS in Bonn, Federal Republic of Germany, Nov. 9, 1986:

It is my honor to speak to you Patriots of the land which has given the world its greatest achievements in science and musical culture, and the inspiration for the founding fathers of my nation, who, like Benjamin Franklin, father of a nation originally dedicated to scientificdevelopment, came to this world-enriching nation of yours to learn scientific method and its relation to statecraft from the great universal thinker Gottfried Leibniz. Today I wish to give you an overview-both in my capacity as the directorof theinternational Bi ological Holocaust Task Force of Executive Intelligence Review (EIR) magazine and the chainnan of the National Democratic Policy Committee (NDPC), the rapidly growing multi-candidate political action committee of the LaRouche wing of the Democratic Party which initiated and campaigned for California Proposition 64-of the scientific, strategic, and political implications of the worldwide war we must wage for the survival of mankind against AIDS . California Proposition 64 is destined to go down in history as the most suc­ cessful "alarm-ringing" public health proposal and "call to arms" for a scientific crash program in human history. Several days ago, nearly two million voters in the state of California, approximately 30% of the electorate, cast their ballots for Proposition 64, despite the fact that virtually every medical, public health, politi­ cal, media, cultural, and religious institution in the state, and many in the nation , had publicly demanded that they not vote for it. Proposition 64 , while it was defeated on the ballot, has shaken the world. It has catalyzed a global movement of growing citizen mass action in numerous countries for emergency public health programs such as obligatory reporting of AIDS cases and universal screening, and a demand for governments to initiate crash scientific efforts of multibillion-dollar expenditures. In Britain a national pollshowed that over 70% of the population favors Proposition 64-type measures. In Norway a nationwide poll demonstrated 70% supportand here in West Germany 60% for Proposition 64-like measures.

30 Feature ElK November 14, 1986 ." il;lhi f!�r gi P AiDs

Left : A Los Angeles "No on 64 " rally in September. Millions of dollars were sp ent to defeat the measure . Right: Warren Hamerman displays the NDPC pamphlet with the scientific evidence on AIDS, which was circulated to California voters in October.

America's largest newsweekly magazine has commented Is life 'cost-prohibitive'? that Proposition 64, although destined to defeat because of a Those scientific and public health authorities who have lavishly funded opposition, "may still be a harbinger of a consciously perjured themselves by spreading lies and dis­ national debate on AIDS" which could require even President information against Proposition 64, will be proven fools, Reagan to commit his officeto controlling this species-threat­ liars , and incompetents by the scientific evidence over the ening pandemic. coming months. Several major scientific papers which prove In other words , government, against its current will, in­ the threat of AIDS to general populations through casual clination, and budgetary priorities, may be forced to spend contact, have been withheld from publication until after the large sums of money to protect life. Here in fact, has rested U.S. elections. Within three to six months the population the real story of the opposition to Proposition 64. will be clamoring for Proposition 64-like measures and more. The opposition had on its side money, Hollywood stars, Unfortunately many, many people will die unnecessarily powerful political machines, and organized government in­ as a result of this vote . As the death toll rises due to this transigence. species-threatening disease, the voters will remember with High government officials such as White House chief of indignation all those who advised them not to panic. A grow­ staff Donald Regan have fostered a policy of "Don't panic, ing majority will soon give its overwhelming support to the don't act, and therefore don't demand any large budget ex­ forces who have led the fight to end the cover-up and begin penditures." Their national health and medical spokesmen waging a war on AIDS . have publicly stated that emergency public health and crash The Republican administration policy of Don Regan, the research programs are "cost-prohibitive." The President of Centers for Disease Control, and Surgeon General Koop, to the United States even went on national television during the cynically toss condoms and free hypodermic needles at a summer and told the citizens that his government was doing threatened population because an Apollo-moonshot style crash all it could against AIDS "within the given budget con­ research program and screening are "cost prohibitive," will straints. " be remembered as the worst medical/public health malfeas­ As a result of presidential inaction, one leading California ance in history . newspaper editorialized that President Reagan had let the They have been aided and assisted by institutions which policy leadership against AIDS be taken by Lyndon H. have an ideological and philosophical commitment, politely LaRouche , the founder ofExe cutive Intelligence Review and known as "Malthusianism," to brutal population reduction a 1988 presidential candidate . programs in tropical areas. Now the National Academy of Sciences, which has The State Department of my nation is such an institution warned of a national "catastrophe" demands presidential ac­ with an operational policy to drastically reduce, with any tion. means necessary , what they view as the "overpopulated"

EIR November 14, 1986 Feature 31 areas of Africa, Ibero-America, and Asia. On the interna­ History of Proposition 64 tional front, global banking institutions such as the Interna­ Nearly one year ago , in Decemberof 1985, the California tional Monetary Fund (lMF) and the World Bank have delib­ secretary of state cleared for circulation a proposed ballot erately organized against scientific-technological transfers to initiative that would place AIDS on the state's list of "com­ solve the problems of the Tropical Areas because they view municable diseases and conditions." those areas as "overpopulated" with too many "excess eat­ On June 20, 1986 the initiative was certified and placed ers." on the ballot as Proposition, 64 after it was signed by nearly They have been assisted by other international institu­ 690,000 voters . tions, many associated with the United Nations, who are The purpose of the proposition was straightforward-to committed to this anti-life, anti-science philosophic view- enforce and confirm that all of the existing public health statutes be applied to AIDS by declaring that the disease is "an infectious, contagious and communicable disease and the condition of being a carrier of the AIDS virus is an infectious, contagious and communicable condition and both Days bfifore the election. the shall be placed and maintained by the director of the Depart­ prestigious National Academy oj ment of Health Services on the list of reportablediseases and conditions mandated by [the] Health and Safety Code." Sciences and its Institute oj That citizens would be forced to vote for such a measure Medicine released a report calling is itself a startling fact. fo r a $2 billion annual budget to That every established institution in the state, the nation and many worldwide would object to traditional public health fight AIDS in order to avert what it and medical approaches is even more astounding. termed a national "catastrophe. " That heretofore reputable scientists would knowingly Two billion dollars was the preCise peIjure themselves and propagate scientific untruths is shameful. budget amount sp ecified in our Proposition 64 brochure. National Academy of Sciences report Yet, since Proposition 64 had scientifictruth and the ever more compelling reality of the inexorable spread of AIDS on its side, it created a context in which two world-historical events occurred on the eve of its passage: the simultaneous point. For example, the World Health Organization (WHO) release on Oct. 29 of a report by the National Academy of in Geneva, Switzerland, has pushed a policy on Africa of Sciences and Institute of Medicine in the United States and a "don't panic or act on AIDS and especially don't request letter from Cardinal Ratzinger, approved by the Pope, to all emergency funds." Since AIDS is a slow-acting lentivirus, Roman Catholic bishops worldwide. the delaying tactics ofthe WHO have allowed AIDS to spread Days before the election , the prestigious National Acad­ silently and rapidly through the population. emy of Sciences and its Institute of Medicine released a report Interestingly, the division of the World Health Organi­ calling for a $2 billion annual budget to fight AIDS in order zation which has been responsible for this policy, its Com­ to avert what it termed a national "catastrophe." municable Diseases Division , is Soviet-run, Soviet-coordi­ Two billion dollars was the precise budget amount spec­ nated, and Soviet-administered under a Russian infectious ified in our Proposition 64 brochure of which we had distrib­ diseases expert named Dr. Sergei Litvinov. Not only African uted 1.35 million copies before the election. The pamphlet policy has been coordinated in this way. The European sub­ was entitled A Votefo r Proposition 64 Could Save the Life of section of the WHO's Communicable Diseases Division, Someone in Your Family, and contained the results of a study with responsibility for setting policy in your nation and all by our Biological Holocaust Task Force. nations between the Atlantic and the Urals is also Soviet­ One of America's senior scientists, the co-chairman of controlled. the National Academy of Sciences report, confirmed to the Patriots of every Western nation must be ever-vigilant of entire world our assessment when he told a packed news Soviet-directed policy disguised through international insti­ conference in Washington that the Academy itself was "quite tutions. The health of any population, especially its armed­ honestly frightened" by the spread of the disease. He stated: forces-age youth , is a nation's most important national de­ "This is a national health crisis of a magnitude that requires fense. presidential leadership to bring together all elements of so­ Any nation or alliance which forgoes defending the health ciety to deal with the problem." of its population, is doomed. The report openly criticized the past federal so-called

32 Feature EIR November 14, 1986 education program on AIDS, which has been piously over­ The collective malfeasance in the leadership of the CDC sold around the world as a model for other countries, as and their AIDS program was firstpublicly exposed 13 months "woefully inadequate ." The 374-page report was sponsored ago in a lO-page documentary feature in EIR , titled "Why is by the Institute of Medicine (10M) and the National Academy the Atlanta CDC Covering Up the AIDS Story?" (EIR , Sept. of Sciences (NAS), prepared by a blue-ribbon committee of 27 , 1985, pp. 52-61). several dozen medical and scientific experts , and is titled Unfortunately, many, many people will die because of Corifronting AIDS: Directionsfor Public Health, Health Care their malfeasance. and Research. The Academy of Sciences made the following stark as­ Forecast of a catastrophe sessment: "Beginning in 1990, we will lose as many Ameri­ In contrast to the cover-up policy of the CDC and other cans each year to AIDS as we lost in the entire Vietnam institutions, what did the National Academy of Sciences re­ War." About 58,000 Americans died during the conflict. port? Their scientific conclusions can be summarized as fol­ Overall, the several tens of senior scientists who prepared the lows: report, concluded that the death and devastation from AIDS There is a likely tenfold increase in AIDS cases over the would be the most severe in the developing or Tropical sec­ next five years . Anyone who has antibodies to the virus must tor, where the majority of the at least 10 million infected be assumed to be infected and probably capable of transmit­ worldwide reside. ting the virus. A person infected with the AIDS virus may They went on to state, that given the fact that AIDS was not show any clinical symptoms for months or even years, a slow-acting viral infection, and the fact that prospects for a but apparently never becomes free of the virus. This long, vaccine or cure were probably more than fiveyears away: "In often unrecognizedperiod of asymptomatic infection, during view of the numbers of people now infected, it is extremely which an infected person can infect others, complicates con­ unlikely that the rising incidence of AIDS will soon reverse trol of the spread of the virus. At least 25 to 50% of infected itself. Disease and death resulting from HIV infection are persons will progress to AIDS within 5 to 10 years of infec­ likely to be increasing 5 to 10 years from now and probably tion and the possibility that the percentage is higher cannot into the next century." be ruled out. There is no satisfactory treatment now for HIV One of the study's directors stated that without "an enor­ infection. Prospects are not promising forat least five years, mous effort in AIDS prevention . . . a decade from now, and probably longer, for a vaccine or an acceptable cure. By we'll have four times more people cropping up with AIDS the end of 1991, there will have been a cumulative total of than we are now projecting. The epidemic will just snowball more than 270,000 cases of AIDS in the United States, with unless we get into a prevention mode." more than 74,000 of those occurring in 1991. By the end of 1991 there will have been a cumulative total of more than Contrasts with CDC cover-up 179,000 American AIDS deaths, with more than 54,000 of The independent report lifted the lid of the cover-up on those in 1991 alone. Because the typical time betweeninfec­ the true threatof AIDS which the Atlanta Centers for Disease tion and development of clinical AIDS is four or more years, Control(CDC) and other administration agencies have been most of the persons who will develop AIDS between now irresponsibly maintaining. White House Chief of Staff Don and 1991 are already infected. Pediatric AIDS cases will Regan, the economic policy strongman of the administration, increase almost tenfold in the next five years. There will be has enforced a brutal policy of "don't tell the truth , don't substantially more cases in the heterosexual population over panic the population, and don't act forcefully because it will the next 5 to 10 years. The estimate for the direct cost of cost too much money," and blow up the budget. health care for the 174,000 AIDS patients projected to be Ironically, five days before the IOM-NAS report was alive during the year 1991, will be $8 billion to $16 billion released, those two national institutions were placed in charge in that year alone. This projection does not include the cost of an emergency investigation of the collapsing CDC, which for treating ARC (AIDS-Related Complex) cases. [There has lost all institutional credibility because of its repeated have been 24,500 AIDS cases and an additional 50,000 to mismanagement of the AIDS program. Seven of the CDC 125,000 ARC cases alreadycounted .} There are an estimated AIDS laboratory 's 13 senior scientists have either quit, been 10 million individuals infected worldwide; the developing fired, or transferred from the AIDS program. At least two of sector will suffer the most from the disease. the remaining six scientists have announced that they will TheCommittee itself called for thecreation of a National leave as well over turmoil at the CDC. Dr. Paul Luciw, the AIDS Commission, initiated by presidential action, and co­ University of California virologist who helped decipher the operating with parallel efforts in other nations, and funded genetic code of the AIDS virus, commented on the turmoil with a $2 billion budget fromthe Congress. The Commission at CDC: "It is not easy to get people who are skilled and is designed to beorganized into a cohesive national program creative. I don't see them recovering. They've lost their that makes use of all available resources, including those of credibility almost completely. " the government, industrial, and academic sectors.

EIR November 14, 1986 Feature 33 Given such a scientific assessment, how can we not mo­ 2) While science has discovered a remarkable wealth of bilize worldwide against this menace to mankind? knowledge about the specific AIDS virus, its genetic struc­ ture and transmission, much less is known about how it Scientific and moral truth are one initiates infection, how it maintains infection, and what de­ On Oct. 29 , ironically the same day that the National termines theprogr ession and diversity of the resulting illness. Academy of Sciences report was released, an institution with We must overcome the problems presented by the genetic unquestioned moral authority made an intervention into the mutability and variation of the AIDS virus, like all retrovi­ AIDS crisis from the highest standpoint of Natural Law. ruses, if we are to develop a vaccine. In fact, the essence of Natural Law is the propositionthat In short, while science has understood the "mechanics" scientific and moral truth are one. of an AIDS infection, we do not yet understand the basic The Vatican released a special letter to all Roman Cath­ biological causality . olic bishops in the world written by Joseph Cardinal Ratzin­ What is the causality between human economic break­ ger, fromthe Roman Catholic Church's authority on matters down, the breakdown of the biosphere as a whole, and the of Church doctrine, the Sacred Congregation for the Doctrine generation of new forms of pandemic diseases? How are ofthe Faith, with the explicit approval of the Pope . The letter different viral diseases created; how do they interact and eloquently stated: "The particular inclination of the homo­ recombined in living organisms? sexual person, although not a sin in itself, nonetheless con­ What are the co-factors which determine the spread of stitutes a more or less strong tendency toward a behavior infection or the activation of the virus in an infected organ­ which is intrinsically evil from the moral standpoint." Al­ ism? though the practice of homosexuality may seriously threaten What new forms of space-age diagnostic methodscan we the life and well-being of a great number of people, the employ from the fieldsof optical biophysics, non-linearbio­ promoters of this tendency do not desist from their actions logical spectroscopy, and other technologies to understand and refuse to take into consideration the scale of the risk thediff erent"tunings" between a healthy growing cell and a implied in them. (See article, page 40.) contrary diseased cell? In addition to the Roman Catholic statement, theUnion Can the methods of space-age optical biophysics beem­ of OrthodoxRabbis of the United States and Canada released ployed to shiftan infected cell from reproducing "pro-viral" a statement endorsing Proposition 64 and eloquently ad­ genetic material back to reproducing "pro-healthy-cell­ dressed itself to the question of universal Natural Law from growth"genetic material? the standpoint of Jewish theology. The Union, the oldest Can we cause a shiftfrom a diseasedcondition to a healthy rabbinical organization in North America, represents over condition at the cellular level? 500 rabbis and heads of Jewish seminaries in the United If we can explore these questions, we shall not only States. unlock the secrets to saving mankind from AIDS, we shall Rabbi Hirsch Ginsberg, the executive director of the be crossing the scientificfro ntiers to reversing thepr ocessof Union, enunciated a fundamental truth of Natural Law by aging and prolonging life to the range of a century and one­ stating: "Moral conduct and goodhealth go hand in hand." quarterto a century and one-half. We have seen how the battle to mobilize our civilization We shall be crossing the frontier to being able to sustain to wage a full-scale war against AIDS , the firsttruly species­ healthy human colonies on the Moon and Mars early in the threateningdisease , has brought into play profound historical next century,as our astronauts begin to explore the uncharted forces among the scientific, religious, and political spectrum. outerregions of our solar system and beyond. The issue at stake is the very basis of our science-driven We need a broad-based crash scientific program which Westernculture . encourages the development of all areas of basic science­ Therefore, we must commit ourselves to sponsor, foster, from basic biophysics and optical spectroscopyto the more and encourage a crash scientificresearch effort. established domains of molecular biology-without know­ ing what we shall discover or what its immediate benefitmay The scientific frontiers we must conquer be. The National Academy of Sciences report makes two Against AIDS we are compelledto fightwith the weapon absolutely fundamental scientific points about the course of of science to restore the most fundamental tenet of Western thatresearch program: civilization, now lost and degraded into a so-called cost­ 1) The progress achieved to date in identifying and char­ prohibitive budget item-the notIon thateach individual hu­ acterizing the causative agent of AIDS would not have been man lifeis precious andworth stru�glingto preservebecause possible without the scientific and medical knowledge of the inherent God-like creative contribution which that achieved over the past 20 years' pursuit of basic biomedical individual may make to his or her fellow man. research. In that pursuit, the scientific investigator is rarely In short, formankind to survive, we have no choice but certain of when or if his research findings will be applicable to promote and unleash afull-scale scientificrenaissance! Is to a disease. not that a wonderful historic predicament to be in?

34 Feature EIR November 14, 1986 AIDS Debate in Britain

Support grows in U. K. for measures rejected by California voters by Mark Burdman

Hardly had the results of California's Nov. 4 Proposition 64 ducted a listeners' poll on AIDS , with the result that 78% of referendum on AIDS been announced, than dailies in Great those polled favored screening measures for AIDS , and only Britain were reporting that a newly formed British cabinet 22% voted against. This poll confirmed results of a late­ committee to combat AIDS would be considering a proposal October telephone call taken by Thames Television's ''This for doing in Britain, exactly what the voters in California Week" show, which resulted in upwards of 70% of those rej ected: treating AIDS as a communicable, or in British polled favoring screening. These results are consistent with terms of reference, a "notifiable" disease. a European-wide pattern, evident from polls taken in several According to a front-page item dispatched by the Daily countries, showing overwhelming popular support for AIDS Telegraph's political correspondent Nov . 5, ''the top-level screening measures. cabinet committee considering the government's strategyfor Perhapsreflecting this mood , the Daily Mail editorialized combating AIDS is to consider making the disease notifiable. Nov. 5 that the aim of the new British Cabinet Committee on This would give doctors and the authorities power to impose AIDS "should be to make mass screeningfor AIDS routine," additional restrictions on people diagnosed to be suffering starting with the "millions of public servants in Britain." from the disease. Existing notifiable diseases include small­ Although quarantine andisolation would be "impractical" pox , yellow fever, and lassa fever." and "inhumane," the Mail argued, screening would mean Similarly, that day's Daily Mail reported, "A dramatic that AIDS sufferers "can receive all the medical help avail­ new move to combat the spread of AIDS is to be considered able and carriers can be left in no doubt of the lethal conse­ by a special cabinet committee next week. Ministers will quence to others of their own promiscuity. " discuss making the disease notifiable, giving medical author­ Also, the Times of London's Letters to the Editor page ities greater control over victims of the killer virus." The on Nov. 5, had three letters, under the heading, "AIDS Mail reportedthat the results of the California Proposition 64 screening for high-risk groups." The firstof these was written referendum "on whether to make the disease notifiable," by Michael B. Bracken of the Yale University School of could "influence medical opinion here." Medicine, Connecticut, who called for "a massive, volun­ As news of Proposition 64'sdefeat reached London , the tary , and confidential AIDS screening program" to be adopt­ reaction, according to the Nov. 6 Telegraph, was "mixed." ed in AIDS-strickencountri es. Bracken warned, "The AIDS One AIDS specialist, Prof. Michael Adler of Middlesex Hos­ epidemic has thepotential forbecomjng the greatestthreat to pital, "warmly welcomed" the defeat, labeling the proposi­ civilization since thebubonic plague and only draconian pub­ tion "counterproductive." But, noted the Telegraph, Harley lic health measures are likely to bring about its control . " Street consultant Dr. John Seale, believes that the "no" vote The day before , the Times had become the first British was achieved by a "well-orchestrated series of half-truths and paper to dare to pUblicize the fact that the well-known Dr. lies by scientists, doctors, and public health officials." Iden­ Seale had been cooperating with Proposition 64. In the con­ tifying Seale as a proponent of "quarantine measures in Brit­ text of a general feature on Lyndon LaRouche, the Times ain," the paper quoted him saying that AIDS was communi­ noted, "Seale will be attending an international conference cable by "children playing, adults kissing, mothers caringfor on AIDS organized by Executive Intelligence Review" on the children, Good Samaritans looking after sick neighbors, and Nov . 8-9 weekend. dentists drilling teeth." Ironically, on the same day that Proposition 64 was voted California as 'negative example' down, an early-moming London radio program, the Brian Among certain British experts since Nov . 4, the evalua­ Hayes Show, on the London Broadcasting Corporation, con- tion is circulating thatthe radio-poll results could reflect the

EIR November 14, 1986 Feature 35 ''negative example" of California, that is, that the decision is reportedly as high as in New York City. Cases of babies by Calif�rnia voters to reject public health measures to deal being born from AIDS-diseased, drug-using mothers , who with theAIDS epidemic is an indication to Britons, and other themselves have the infection, are being reported. An"Edin­ Europeansas well, of what not to do in response to the AIDS burgh obstetrician, Dr . John Loudon, has made the contro­ pandemic. On the eve of Proposition64, Scottish television versial proposalthat AIDS screening-tests for pregnant moth­ ran a several-day feature on AIDS , one segment of which ers be made compulsory, and becarried out over the mother's documented how, in New York City, 1 of every 16 of the objections, should there be any . city's 7.5 million people is infected with AIDS ! As the Daily Telegraph wrote in a lead editorial Nov. 4, 'Desperately late, tragically late' were the British public to become more aware of the AIDS The Thatcher government has appointed a cabinet-level situation in the United States, "support for much tougher committee whose purpose will be, in the wordsof the Sunday measuresby the governmentmight become overwhelming." Telegraph Nov. 2, "to work out a national strategy to halt the Other British papers pointed to the future for Britain lightning spread ofAIDS ," and "to bring the whole range of becoming more and more like that in the United States The government expertise to bear on the problem for the first Sunday Times of London , Nov. 2, stated, "Britain is now time." wherethe United States was four yearsago ." The paper noted . Many observers in Britain express the fear that the com­ that, in the United States, "the failure of a widespread 'Safer mittee would lack the will to actually deal with AIDS deci­ Sex' campaign to check the spread of the disease, and a sively. For "economic reasons ," EIR has been told by sources growing feeling that the authorities have lost control , has in a position to know , the Thatcher government will likely triggeredmuch moredrastic and socially-divisive policy sug­ shy away fromtaking radicalpublic health measures on AIDS, gestions than any proposed in Britain." The paper reported, although that might change under enough pressure and under in negative terms, on Proposition 64, but was obliged to conditions where the terror of inaction overrides the fiscal­ admit, that even if Proposition 64 were to lose on Nov. 4, austerity, "privatization" mentality prevalent in government this "would in no way calm the sense ofpanic which brought advisory circles. it into public view. " The committee is to be headed by Viscount Whitelaw, Other articles in the Sunday Times reported some alarm­ and will also include Social Services Secretary NormanBak­ ing figures . One piece revealed that a growing number of er, Foreign Secretary Sir Geoffrey Howe, Education Secre­ AIDS cases are being called "unknowns," because no one tary Kenneth Baker, and Home Secretary Douglas Hurd. has discovered any mode of virus transmission along the so­ Several British editorials b¢ginning Nov. 2, demanded called high-risk routes. The Sunday Times admitted that sa­ that the Thatcher government do something, quickly and liva "has certainlybeen foundto contain the virus,though in decisively, to respond to the AIDS crisis. Under the heading, far smaller quantities than in blood or semen , the normal "Dangerous Delay," the Sunday Mail Nov. 2 exclaimed, "It vehicles of transmission." Further: "Even tears and breast­ is really extraordinary that the government is still dithering milk have not been cleared entirely. So there is at least a over what to do about AIDS." The paper stressed: "AIDS is remote chanceof infection through such activities as kissing, not just another disease. For as this newspaper has consist­ mouth-to-mouth resuscitation, dentistry , drinking from the ently sought to point out, if it is allowed to rununchecked, it communion chalice, or, even it has been suggested, trying will very soon represent a public health hazard greater than out an unsterilized contact lens." tuberculosis ever was, and perhaps even approaching the Another Sunday Times piece , under the title , "Explosion dimensions of the Black Death in the Middle Ages. That is of AIDS deaths is forecast," began: "Deaths from AIDS in notalarmist talk-that is a coldly calculated fact which can Britain could reach 20,000 to 40,000 in 10-20 years ." This be quiteeasily extrapolatedfrom the course which the disease forecast came from a new computerized analysis on likely has run so far . AIDS spread, done by Birmingham University Professor of "Priority should now be given to putting men and mate­ SocialMedicine George Knox , who told the paperthat AIDS­ rials behind a bid firstly to educate the public properly as to casualty figures "are ofthe same order as lung cancer now, the part they can play, and secondly to finance the scientific or tuberculosis in the 1920s." community to find a cure . The Sunday Times also emphasized that the latest evi­ "If this generation continues to procrastinate, it will not dence shows that AIDS is spreadingout of the so-called high­ lightly be forgiven." risk categories, into the general population , with a growing On Nov. 5, the Daily Mail, in the same editorial cited rateof AIDS cases reported among heterosexuals. above calling for routine screening for AIDS , warned: "There In addition, some local AIDS ftashpointsin the U.K. are is no curefor AIDS . Those who contract it die. The number displaying conditions not unlike the worst of cases in the of victims is doubling every ten months. As for the number United States In the city of Edinburgh, Scotland, for exam­ of carriers , estimates vary from 30,000 to 100,000. Only ple, the rate of AIDS infection among intravenous drug users now, desperately late , tragically late, is the governmentnerv-

36 Feature EIR November 14, 1986 ing itself to lead the counter-offensive. . . . The war to con­ tain the spread of AIDS must, if it is to have any hope of success, be waged all-out ....What we fear is that even now Lord Whitelaw and the others may not realize it is going to take more , far more than a public relations exercise to combat this insidious and fast spreading plague ." Liberal press fe ars From a different political standpoint, the liberal Guardi­ an, on Nov. 4, under the title, "Only a Start in AIDS Fight," Prop 64's impact welcomed the new Cabinet committee, as a possible "impor­ tant step towards a more serious public approach to the dis­ From hundreds of news reports and fe ature articles on Cali­ ease," but stated that there must still be "real concern thatit fornia's Proposition 64 around the world, we have selected has come unnecessarilylate ....If a more serious approach the following as indicative of the international impact of the had been taken two years ago, lives could have been pro­ initiative. longed . High-level attention to AIDS is important. But it is vital that Lord Whitelaw and his team do more than just strike U.S.A. attitudes ....Lord Whitelaw and his colleagues must be Newsweek, major liberal U.S. weekly magazine, Nov. prepared to follow through the logic of the setting-up of their 10 committee . We know there is a crisis and a growing threat . Noting that President Reagan has made few comments That crisis has to be addressed as a matter of priority, and on the epidemic, Newsweek says: "He may yet be forced into much more than a matter of public relations. " it. Even at its present level, the AIDS epidemic threatens to Although expressing skepticism about screening, the swamp the nation's health-care system .... AIDS poses Guardian called for "an international agreement about con­ profound ethical and legal questions . . . and it has become trols over [the spread of AIDS] through travel ," combined an issue in electoral politics as well. This week, for example, with large-scale assistance programs to AIDS-ftashpoint areas Californiavoters will decide on Proposition 64, a cunningly­ in Africaand elsewhere in the developing sector. crafted referendum item that could force state officials to isolate and quarantine AIDS victims. Sponsored by the dis­ , Awesome political retribution' ciples of political extremist Lyndon LaRouche, Proposition Ninety members of the British Parliament, almost all 64 seems destined for defeat. But it may still be a harbinger from Mrs . Thatcher's Conservative Party , put forward a spe­ of a national debate on AIDS-a debate that could require cial motion Nov. 3, calling on the BBC and the Independent Reagan, that most cheerful of Middle Americans, to commit Broadcasting Authority to provide free broadcasting time to his office to controlling this ghastly epidemic . " inform the public about the dangers of AIDS . Also, with national elections likely in 1987, the firstshots Germany may have been fired in an "AIDS war" between the political Die Zeit, West German liberal daily associated with the parties . Commentator Paul Johnson, writing in the Daily Trilateral Commission, afull-pagefeature article, written as Mail under the heading, "AIDS: The Danger Labour Ignores a position paperfo r a Nov. 6-7 West Berlin meeting on social at Britain's Peril," exposed how the opposition Labour Par­ and poljtical implications of AIDS, by Erwin Haeberle, of ty 's alliance with the "homosexual lobby," and attempts to the California-based Institute fo r the Advanced Study of Hu­ sabotage the Thatcher government's war on drug-traffickers, man Sexuality. have expedited the spread of AIDS . Johnson also attacked "LaRouche , at least, will be very satisfied , even if he has the hypocrisy of Labour's anti-nuclear campaign, following a defeat, because he argues there will be further spread of the Soviet Chernobyl nuclear disaster, while Labour actions, AIDS, and intends to campaign on the spread of AIDS , and at the same time, "entail real risks ofhastening the spread of the growing general fe ar. . . . He will attack all those who an undoubted large-scale killer-AIDS.... In Britain, AIDS went against the referendum. He will make political capital has already killed over 250 people-many, many more than out of this. have so far died in the Soviet Union as a result of Chernobyl . "[LaRouche is] a political paranoiac [who heads] a right­ A report to the cabinet warns that a further 3,000 will die in wing political sect, the National Democratic Policy Commit­ the next three years and that 300,000 more will be infected. tee . In short, unlike nuclear power, AIDS is a genuine mass-threat " [Californiaauthorities] are rightfully trembling with fear to British lives." that PANIC could be successful . ... As polls show , the Johnson concluded: "On the issue of AIDS and the homo­ voters do not know enough to guarantee a clear defeat for the sexual connection, Labour is playing with human lives. As referendum. Many [California influentials] regret having the public grasps this fact, there could be an awesome polit­ played around with the proposal for quarantine , because now, ical retribution. " the matter is to be decided upon by popular vote . It is now

EIR November 14 , 1986 Feature 37 becoming clear to politicians, that panic in respect to AIDS must be immediately knocked down, with a quick blow . Now, instead , people are running around with their tongues hanging out, running after a development that could have been stopped in the beginning stages. No matter how this affair goes, it already shows that, today, an information cam­ paign on AIDScan never betoo necessary, and too broad. . . . "Economists have calculated how much [screening] would really cost, and the estimate is, $19 billion in the first year. In short, the whole project, for financialreasons alone, is not discussable. " Who ran Sweden Angeles; The Rev. Oliver Garver, Acting Bishop, Episcopal Dagens Nyheter, Stockholm liberal "newspaper of re­ Diocese of Los Angeles; The American Jewish Congress; cord, " Oct. 30 The California Chamber of Commerce; The Los Angeles "The report [of the National Academy of Sciences] to a Area Chamber of Commerce; The California Labor Federa­ certain extent, puts wind in the sails of theright-wing extrem­ tion; The Los Angeles Times; The Los Angeles Daily News; ist Lyndon LaRouche. He wants to quarantine all AIDS vic­ former Senator Adlai Stevenson; The Washington Times; tims and is spreading scare-propaganda in California, where Surgeon-General C. Everett Koop; The American Civil Lib­ the AIDS proposition is up for a referendum vote. " erties Union; California Catholic Bishops Conference.

38 Feature EIR November 14, 1986 dorsed the Proposition, including State Assemblyman O. Bradley, State Senator Jim Ellis, and State Senator Jolul Doolittle. Also endorsing Proposition 64 was Dr. Jolua Bridgeman (a family practitioner), 12 Baptist pastors, and Lou Sheldon, California State Chairman of the Traditional Values Association. Endorsers of Orthodox Rabbis of the United States and Canada. repre­ senting over 500 rabbis and heads of seminaries. statement issued in Sacramento, California, Oct. 31 Proposition 64 Thestatement asked "all Jewish andnon-Jewish voters of California to vote yes on Proposition 64."Explaining the Lyndon LaRouche, 1988 presidential candidate, from the decision, Rabbi Hirsch Ginsberg said: "Moral conduct and pamphlet, "A Votefo r Proposition 64 Could Save the Life of good health go hand in hand. Our sacred Torah teaches us Someone in Your Family, " National Democratic Policy that all natural phenomena, whether diseases or disasters Committee such as floods or earthquakes, are decreed by God. We be­ "Every leading medical institution in the United States lieve that AIDS is the price paid for homosexual promiscuity. and Western Europe knows that the deadly disease called Jewish law and the Bible prohibit homosexual practice. We AIDS is spreadby 'casual contact'. . . . also, with genuine passion, wish the homosexualsin Califor­ "All of this evidence is known to everyresponsible med­ nia and elsewhere to tum away from their lifestyles in the ical official and public-health agency. Therefore, those who interests ofthe welfare of society. " say there is very little danger from 'casual contact,' are liars. They are gUilty of one of the most evil cover-ups in medical Candidates Biblical Scoreboard. publication of ChristiDn history. Voice/Biblical News Service "California Proposition 64, is the way to protect your family andyourself fromthis cover-up. ,. Howard Phillips, head of United Conservative Appeal, on "Cross-Fire" program of Cable News Network. Oct. 30 William E. Dannemeyer, Member of Congress, 39th C.D. "I hopevoters of Californiawill forget that this resolution (Orange County), statement submittedfo r the California Bal­ is sponsored by LaRouche and they will read thelanguage of lotPamphlet it. It holds AIDS carriers to no standards tougher than those "California law today makes it illegal for public health which apply to rabies. syphilis, gonorrhea, tuberculosis, and authorities to be informed of a large numberof those (about so forth. There's no political lobby for syphilis, as there is , 385,(00) who can spread the deadly AIDS virus to others. for AIDS ." How can they take the necessary stepsto slow its spread as long as this is true? John Seale. M.D., F.R.C.P., prominent British venereolo­ "Under existing law, a physician who encounters any of gist and expert on AIDS 58 reportablediseases is requiredto reportto health officials. From a statement issued July 17: ''The unique danger of Included are several venereal diseases, such as syphilis and the AIDS virus to our civilization is that all people infected gonorrhea. Contact tracing is conducted. But, for those with with it remain well, but are potentially infectious to others the AIDS virus, not yet developed into AIDS, a special state for several years before the illness develops. . . . " law passed at the request of the male homosexual lobby prohibits contact tracing. Proposition 64 will require that Hans B. Svindland, M.D., professor of dermatology in Oslo . those with the AIDS virus ,be reported as are other commu­ Norway, internationally known specialist in Kaposi's Sar­ nicable diseases. It does not requirequarantine . coma ''The cost of the AIDS epidemic in California, it is esti­ "The AIDS epidemic has become a global threat, and if mated, will be at least 59,400 lives by 1991and almost $6 there is tobe any hope of restricting the disease, we have to billion to bepaid by insurance andlor taxpayers. Let'sreduce resort to drastic means, just as we have done in the case of those statistics by voting YES on Proposition 64." past epidemics. "

California congressman, legislators Adrian Rogers, M.D .• Exeter, England. Medical Adviser to Republican Congressman Duncan Hunter, a well-known Conservative Family Campaign. lobbying group associated conservative from San Diego's 44th C.D., became the sec­ with 12-15 Members of Parliament ond California congressman to endorse Proposition 64. Be­ "One would support this initiative, both on basic medical sides Dannemeyer and Hunter, several state legislators en- grounds, and on basic humanitarian grounds."

EIR November 14, 1986 Feature 39 Va tican intervenes into AIDS debate, scores 'Catholic homosexual' lobby

by KathleenKlenetsky

The Vatican made a dramatic intervention into the debate on tioned support of her pastors , with a view to change civil AIDS in late October, when it issued a 14-page document statutes and laws. The goal of such action is to make such reaffirming the Roman Catholic Church's condemnation of legislation conform to these pressure groups ' own concep­ homosexual behavior. Authored by Josef Cardinal Ratzin­ tion, according to which homosexuality is at least a perfectly ger, Prefect of the Sacred Congregation for the Doctrine of innocuous reality , if not downright good. the Faith, the document received the personal approval of ''Those who within the community of faith are pushing Pope John Paul II. for legitimizing homosexual acts often have close ties with The "Letter to the Bishops of the Catholic Church on the those who act outside of it. Now these outside groups are Pastoral Care of Homosexual Persons" is a new step in the moved by a vision opposite to the truth on the human person, campaign which the Pope, Ratzinger, and their allies have which has been fullyrevealed to us in the mystery of Christ. waged to strengthenthe Church, so that its fullmoral author­ They manifest, even though not in an entirely conscious way, ity can be wielded in the battle against pagan hedonism. a materialistic ideology, that denies the transcendental nature In his letter, Cardinal Ratzinger restates the Church's of the human person, as well as the supranatural vocation of

traditional position that people who engage in homosexual every individual. . . . " activities commit an "intrinsic moral evil" and that even The letter calls upon all bishops to be particularly watch­ inactive homosexuals areat moral risk: ''The particular incli­ ful over theologians and priests who may attempt to subvert nation of thehomosexual person, although not a sin in itself, the teaching of the Church; it enjoins them to withdraw all nonetheless constitutes a more or less strong tendency toward support from homosexual organizations that "associate among a behavior which is intrinsically evil from the moral stand­ themselves, without clearly establishing that homosexual ac­ point." tivity is immoral," and to prohibit the use of buildings be­ The letter is just as straightforward in addressing the longing to the Church or Roman Catholic universities to "confusion" that has developed within the Church on homo­ homosexuals: "To some , such permission to use a property sexuality. Noting that "an ever-increasing number of persons of the Church may seem only a gesture of justice and charity , . . . is exerting very strong pressures to push it to accept the but in reality it is in contradiction with the very aims for homosexual condition, as if it were not a disorder, and to which these institutions were founded, and can be the source legitimize homosexual acts," Ratzinger warns: "Even inside of misunderstandings and scandal ." the Churcha tendency has been formed, made up of pressure groups of various names and sizes, which attempts to pass Homosexuality and the Aquarian Conspiracy itself off as representing all homosexual persons who are The rise of an organized homosexual movement, replete Catholic. In fact," Ratzinger notes , "its followers are mostly with bestial and satanic overtones, has been a hallmark of the persons who either ignore the teaching of the Church or seek United States' 20-year decline into a moral hellhole, known in some way to subvert it. as the "Aquarian Conspiracy." In this orchestrated revolt "There i:s an attempt to gather under the aegis of Cathol­ against Judeo-Christian tradition , typified by the rock-sex­ icism homosexual persons who have no intention whatever drug counterculture and by the neo-Malthusian preachments of giving up theirhomosexual conduct," the letter continues. of the zero-growth lobby ,. every form of behavior that de­ "One of the tactics used is that of asserting, in tones of protest, grades the human person, including homosexuality, has been thatany criticism or reservation toward homosexual persons, actively encouraged. their activities, andtheir lif estyle, is a form of unjust discrim­ Over the past decade, momosexuality has become one of ination. the leading causes celebres of the liberal (more accurately: "Insome nations, therefore , an actual attempt is going on Gnostic) forces which have attained great influence in the to manipulate the Church by gaining the often well-inten- American Catholic Church. The Vatican has clearly been

40 Feature EIR November 14, 1986 concerned about the proliferation of homosexuality within its goodness. He creates man in his image and likeness, male ranks. The issue figured strongly in the Vatican's recent and female. Human beings are therefore creatures of God, disciplining of Catholic University theologian Fr. Charles called upon to reflect, in the complementarity of the sexes, Curran-who teaches that homosexuality can be a positive the inner unity of the Creator. They achieve this task in a moral good under certain circumstances-and of Seattle singular manner, when they cooperate with him in the trans­ Archbishop Raymond Hunthausen, who has permitted Dig­ mission of life, through reciprocal wedded donation. nity, an organization of homosexual Catholics, to use church­ "To choose someone of the same sex for one's sexual es under his jurisdiction for religious services. activity is to annul the rich symbolism and meaning, not to Fr. James Jorgenson, a Seattle priest who regularly cel­ mention the goals, of the Creator's sexual design. Homosex­ ebrates mass for Dignity, recently wrote a letter to the Na­ ual activity is not a complementary union able to transmit tional Catholic Reporter. in which he claimed that "Homo­ life; and so it thwarts the call to a life of that form of self­ sexuality is no sin and pastoral practice should underscore giving which the Gospel says is the essence of Christian that." Jorgenson castigated the "Roman Church" for "em­ living ....This does not mean that homosexual persons are powering the voice of homophobia," in contrast to Archbish­ not often generous and giving of themselves; but when they op Hunthausen, through whose "faithful assistance, the spirit engage in homosexual activity they confirm within them­ of god herself [sic] has convinced my friends at Dignity of selves a disordered sexual inclination which is essentially their goodness." self-indulgent. ..." But Ratzinger's letter, distributed to every bishop, sig­ nals that Rome has decided to go on the offensive against Aquarian Conspirators fight back homosexuality as a concentrated expression of moral and In its Aug. 8 issue, EIR published an article reporting on spiritual degeneracy, particularly within the Church. "Make the opposition to Proposition 64. We showed that many of no mistake ," a Vatican prelate was quoted by the Washington those involved in the anti-Prop 64 campaign, particularly Post. "this statement against homosexuality and how it is to those linked to the U.S. Catholic Church, feared that the be treated by the Church's priests is directly linked to the initiative might spur a "counter-paradigm shift" away from Vatican 's attacks on the liberal doctrines of the Church in the the Aquarian Conspiracy, and strengthen the "conservative United States and Europe ." It is "no coincidence" that Curran family-centered agenda" of the Pope and Cardinal Ratzinger, and Hunthausen "offended the Vatican because of their stand as George Wiesolek, social justice director of the San Fran­ on sexual ethics, particularly their tolerance and acceptance cisco Archdiocese, put it. of homosexuals," he added. It is not surprising, that the same networks that led the fight to defeat Proposition 64, including those who claim to The paradigm shift be Catholic, have greeted Ratzinger's letter with howls of Ratzinger's letter does not mention AIDS , but it does outrage. Terry Coughlin, president of the New York chapter make an unmistakeable allusion to the deadly epidemic: "Even of Dignity, says that the Vatican "has gone further than they've when the practice of homosexuality may seriously threaten ever gone in the past, in lack of understanding" of homos ex­ the lives and well-being of a large number of people, its uals' plight. "This is part of a whole process" of cracking advocates remain undeterred and refuse to consider the mag­ down on pluralism in the Church, he moaned . "If the bishops nitude of the risks involved," it says. "The Church can never don't address this issue head on," then there'll be no stopping be so callous." Rome. What the letter does, is to place the issue of homosexu­ One element of the Vatican document that has caused ality (and, by extension, AIDS) in the context of the broader special panic in the United States is its allusion to AIDS . framework of natural law and thehealth of society as a whole, "That is outrageous!" exclaimed Jeffrey Levi, executive di­ and to examine from that standpoint, what makes homosex­ rectorof the NationalGay and Lesbian Task Force . "A Church uality, in contrast to heterosexual love, "intrinsically evil." that is supposed to be showing compassion and caring for "The Church is aware ," Ratzinger writes, "that the opinion, those who suffer from the horrible disease instead is further­ according to which homosexual activity would be equivalent ing bigotry and hatred. The hostility of the Catholic Church to , or at least as acceptable as, the sexual expression of to gay men and lesbians has made solving this problem more conjugal love, has a direct effect on the conception that so­ difficult. A statement like this from the Vatican is only going ciety has of the nature and rights of the family, and seriously to worsen the AIDS crisis, not resolve it." endangers them." A spokesmanfor the Los Angeles-areaInterfaith Council As an alternative to this fraudulenttheology of homosex­ on AIDS (which opposed Prop 64), said the document "is uality, Ratzinger poses "the theology of the creation," ex­ causing great pain" to Catholic pastors . But one Catholic pounded in Genesis. "which supplies the fundamental stand­ theologian who strongly supported the Vatican statement, point for adequate comprehension of the problems posed by believes it will "bolster the moral backbone" of American homosexuality. God in his infinite wisdom and omnipotent Church leaders who do not condone homosexuality, but have love, calls into existence all reality, as the reflection of his feared to speak out because of political pressure.

EIR November 14, 1986 Feature 41 ,\

Drug traffickers go for a coup in Mexico

by Mark Sonnenblick and Hugo L6pez Ochoa

The faction of the Mexican government which protects nar­ May 13 by Sen. Jesse Helms (R-N.C.). The drumbeat was cotics traffic and the holders of Mexico's $100billion foreign picked up and reiterated by Helms and the New York Times. debt tried a "Halloween Massacre" against the patriotic fac­ much to the astonishment of Mexicans, who knew Ocana to tion which opposes them. The coup aimed to purge and be the least likely politician to indulge in corruption. Whom intimidate all those resisting a surrender of sovereignty to the does the sniveling Yale-graduate customs director workfor? one-world institutions of drugs and monetarism. It was a He was put in his job by Treasury SecretaryDonald T. Regan leading edge of the drive to eliminate the institutions which on Oct. 13, 1981. He almost lost his job after his slander of protect the positive heritage of the Mexican Revolution. the Sonoran governor droveU. S.-Mexican relationsto a new , The patriots aborted the coup attempt, leaving its orches­ low. He was called to the White House, May 17. Witnesses tra\or, Interior Minister Manuel Bartlett, exposed as a mafia­ saw him welcomed with open arms by none otherthan Chief linked thug. While stabbing opponents in the back may help of StaffDonald T. Regan, and he kept his job. EIR readers a Mexican presidential contender, failing and getting caught are familiar with the role as godfather to Dope, Inc . 's money does not. laundering which Regan played during and after his presi­ The battle for presidential succession will increasingly be dency of the Merrill Lynch funny-money brokerage. fought over two immediate threats to Mexico: the manifest Ex-governor Ocafia's brother Gilberto confessed to political power of international narcotics traffickers , and the charges of owning ranches .on which small patches of mari­ economic disaster which President Miguel de la Madrid has juana had been found, the Mexican press trumpeted Oct. 29 . brought by propitiating international bankers . The next day it quoted Ocana saying he resigned his post as The massacre was initially directed against Samuel Ocana head of the ruling Institutional Revolutionary Party (PRI) in Garcia. As governor of the northern border state of Sonora the neighboring state of Sinaloa and retired from politics. from 1979 to 1985 , he distinguished himself for his program Both stories were lies. in favor of accelerated industrial development. Thus, while According to Ovaciones. a daily favoring Ocana, the International Monetary Fund (IMF) conditionalities propel­ pressures to get rid of him were repulsed by the new president led most of Mexico into the worst depression in its history , of the PRI, Jorge de la Vega Dominguez. One of the Mexican Ocana achieved an economic growth which makes the So­ officials with the best credentials as an anti-drug fighter, the norans proud. They still say, "We don't feel the crisis here." Supreme Court president who had sentenced narcotics king­ Framing Ocana on narcotics charges was first advocated pin Alberto Sicilia Falc6n, dispatched himself to Hermosillo, by U. S. Customs Director William von Raab in hearings held Sonora, to make sure brother Gilberto was not railroaded.

42 International EIR November 14, 1986 When Gilberto. appeared in Co.urt Oct. 31, he did so. armed o.f the Mexican populatio.n. They realize that such majo.r with documentary evidence to. provethat he had been framed, surgery co.uld o.nly be successfully perfo.rmed by shattering and the pro.secutio.n's "witnesses" testified that army o.fficers the co.untry' spolitical institutio.ns. As the Wall Street Journal had threatened to. to.rture them if they did no.t sign pre-written argued Oct. 9, Mexico. will have to.be sent thro.ugh chao.s and affidavits against Gilberto. Ocana. even eco.no.mic default and catharsis in o.rder to. bring abo.ut a All o.ver Mexico., in the Chamber o.f Deputies, in the new political o.rder. natio.nal press, and in his ho.me state , PRI patrio.ts c1o.sed The prime vehicle is the National Actio.n Party (PAN) ranksto. prevent the co.nsumatio.no.f the "Watergate" against and its partners , the Mo.sco.w co.mmunist party, no.w called the ex-go.verno.r. the Unified Socialist Party o.f Mexico. (PSUM). The PAN Crucial to. this battle was the publicatio.n in So.no.ra's candidate fo.r the go.verno.rshipo.f Si nalo.a,Manuel Clo.uthier, Diario del Yaqui, with fro.nt-page banner headlines o.fa dec­ roundly defeated in the Oct. 26 electio.ns thanks to. Samuel laratio.n by the Mexican Labo.r Party (PLM), the fraternal Ocana's guidance o.f the state PRI, declared No.v. 4 that the party to. Lyndo.n LaRo.uche's candidate's mo.vement in the United States sho.uld block new Io.ans to. Mexico.. "We will United States. The PLM reveals: "Narco.ticstraffic is co.nso.l­ have to. make a natio.nal plan to. o.verthro.w the current re­ idating a po.litical fo.rce to. makea Co.upd' etat in Mexico."and gime ....My final o.bjective will be to. destabilize this go.v­ Bartlett is apparently the man behind the Co.up. (See text, ernment, the fruit o.ffrau d, which has no. right to. go.vern us." belo.w .) Clo.uthier's role as a traito.rto. Mexico.is no.thingnew . His great-grandfather came there with Archduke Maximilian, A $12 billion 'threat to lend' who. tempo.rarily made Mexico.part o.f the Hapsburg empire . Mexico. is at a histo.rical turning po.int. Under de la Ma­ What may seem no.vel is this arch-reactio.nary's o.vertalliance drid's IMF rule, 20 years o.f advances in living standards with Mo.sco.w to. bring chao.s So.uth o.f the bo.rder. And what have been wiped o.ut, leading to. 100,000 to.tally unnecessary o.f the o.vert backing o.fthe Mexico.-bashers in the U. S. Re­ deaths from malnutritio.n yearly. The lack o.f markets and the publican Party and the State Departmentfo.r the PAN and its high interest rates have caused massive layo.ffs and put 28% "alliance fo.r democracy" with the co.mmunists? In his Oct. o.fmanufacturing o.nthe brink o.fbankrupt cy. The eco.no.mic 29 press co.nference claiming electo.ral victo.ry fo.r himself structureis beginning to.co.llapse as urban and rural pro.ducers and PAN several mayo.ral candidates, Clo.uthier blamedLyn­ simply sto.p producing. Bo.th private and state industries are do.n LaRo.uche and the PLM fo.rnews sto.ries o.n so.rdid co.n­ being handed o.ver to. fo.reign credito.rs o.ne by o.ne. nectio.nswith the Mexico.bashers which had Co.sthim heavily In return fo.r pro.mises o.freceiving a $12 billio.n package at the po.lls. o.f Io.ans to. keep the co.untry perfo.rming o.n its fo.reign ac­ A self-destructo.peratio.n is being run fro.m inside the PRJ co.unts, de la Madrid has agreed to. accelerate these tenden­ under the title, "political refo.rm ." On No.v. 3 the President cies. The business daily El Financiero published No.v. 4 a anno.uncedhe was submitting legislatio.nwhich wo.uldsatisfy Io.ng list o.fsecret co.nditio.ns signed with the Wo.r1d Bank as the incessant co.mplaints fro.m the No.rth abo.ut "vo.te fraud" part o.f the package . They amo.unt to. dismantling state direc­ and a suppo.sed lack o.f fair play to.wards the fringe parties. tio.n o.verthe eco.no.my , impo.singsho.ck austerity, and letting Interio.rMinist er Manuel Bartlett will defend the bill in Co.n­ speculators and fo.reign debt co.llecto.rs snatch what they want. gress No.v. 15. His strategy is rig the rules so. that Mo.sco.w­ The natio.nalist fo.rces in Mexico. are at the bo.iling point; run fringeparties ho.ldhalf the seats in the Co.ngress, thereby Fidel Velazquez, the veteran leader o.f the labor secto.r, the giving them veto. po.wer o.ver public po.licy. No. President Mexican Wo.rkers Co.nfederatio.n (CTM), is almo.stin direct wo.uld be able to. rule witho.utco.nciliating fo.reign interests . co.nfro.ntatio.n with the regime. Velazquez's statements are a This is but de la Madrid's latest co.ncessio.n to. credito.r reliable bellwether fo.r the co.untry's mo.o.d , altho.ugh his ac­ pressures. The famo.us Mexico. bailo.ut was anno.unced by tio.ns have been to. ho.ld the ruling PRJ party to.gether at all Treasury Secretary James Baker in Seo.ul, 13 mo.nths ago.. Co.sts. No.ta penny has co.methro.ugh . In fact, theagreement "turned The PRI has always been an alliance o.fdivergent fo.rces, into. a pumpkin" at midnight o.n Hallo.ween, when private o.perating under a set o.f unwritten rules which befuddle tho.se bank credito.rs failed to. co.mmit the 90% "critical mass" o.f o.utside the inner elite o.fMexican politico.s . In his desperate their new mo.neyco.mpo.nent under a deadlineset by the IMF. attempt to. placate credito.rs to. the No.rth , de la Madrid is The deal will be resurrected o.nce again, and nego.tiatio.ns vio.lating the rules o.fthe game by destroying the so.cial and may well drag o.uteternal ly. The series o.fexcuses fo.rbanker eco.no.mic basis o.fstability in Mexico. and no.t co.nciliatingo.r no.n-co.mpliance is quite amusing. But is certain is that the coopting the protests fro.mevery co.nstituencyo.f his party . Io.ans promised to. revive Mexico.'s eco.no.my and prevent a The bankers' aim is to. iso.late fro.m state po.wer the anti­ so.cial explo.sio.n will never arrive . Labo.rleader Fidel Velaz­ austerity , natio.nalist PRI factio.ns which represent the wo.rk­ quez wryly no.ted No.v. 3 that the credits "were sent o.n a ers , peasants , and unemplo.yed, the o.verwhelming majo.rity burro. ."

EIR No.vember 14, 1986 Internatio.nal 43 \

. secretariat of Interior there are others, led by Fernando Elias Calles Alvarez Morphy, a junior multimillionaire who is a political and family ally of ex-governor of Sonora, Carlos Armando Biebrich Torres, who is fixated on the idea of PLM: What's going on · �estroying Samuel Ocana, because of the moral integrity traffic? with the drug ,:which he showed in the face of the massive corruption Bie­ :\>richheaded when he governed that state . NUI;mlCll E.'(f!c/lI;\'(' ("o",,,,;IIet' .Hale",el/t e�r the Mex;call La­ :: Jose Biebrich, alias "El Pepin," devoted himself to nar- Imr ParlY (PLM), rt'/t'Clst'd em Oct. 31." • cotics traffic when his brother Carlos Armando Biebrich was 'governor. For his illegal activities, he used a fleet of small The events of the past few days show that narcotics tmffic is planes which he had in the sierra of Sahuaripa, in the north­ . con�llidating its political power in Mexico in order to m ake east of Sonora. But, what has been done about him? a virtual coup d·ctat . It was shown that Arcadio Valenzuela, alias "Cayo," the On Tuesday Oct . :!K.Gi lbcrto Ocana Garcia. the brother former owner of Banpacifico, was a "launderer" of Caro of the fornler governorof Sonora. Dr. Samuel Ocana Garcia. Quintero's money. Nevertheless, he now has political influ­ was arrested and accused of narcotics tmfficking. Suppos­ ence in the state of Sonora. Absolutely nothing has been done edly. three hectares planted with marijuana were found on to him. two mnches belonging to the ex-governor's brother. If that Jaime Figueroa Soto, Sonora's main drugtrafficker, who accusation were proven. the man accused should be tried for lives in the exclusive Pitic neighborhood of the state capital, it . That is not the important thing. Hermosillo, walks around completely free . And all of Sonora On the "EI Bufalo" nmch in Chihuahua. belonging to knows he' s the state' s main drug trafficker. What is worse is .. Rafael Caro Quintero. there were thousands of tons of mari­ that, when he was arrested in February of this year, he was juana which were being exported to the United States over a released hours later by one of the state's police forces. period of several months. without either state or federal au­ In Sinaloa there are many accusations against Gov . [An­ thorities having moved a finger to "discover" the "ranch ito" tonio) Toledo Corro, his son Tony and his wife, and, how­ becalisc there were important personsof politics andfin ance ever, he was protected. It is known that Governor Toledo .ilivolved in protecting it. Corro offered a political deal in exchange for not being ar­ the size of the oper­ rested. When in March and April of this year, the Chamber . ... No comparison.c an be made . given . ... · atiOll: However� in the I Ocana I arrest. one can smell a rat . of Deputies formed a commission to investigate accusations . Ocana's brotber was arrested just hours after the state elec­ against Toledo Corm, the president ofthat commission, Dep­ tions in Sinaloa. where Dr. Samuel Ocana is the representa­ uty Fernando Ortiz Arana, defended Toledo Corm. If the tive of the Institutional Revolutionary Party . Immediately. political interests which Ortiz Arana defends were investi­ the press. obviously ordered by someone to attack Ocana. gated, it would be found they are those of interior minister makesIt scandal . as if he were the drugtraf ficker! He was hit Manuel BartlettDiaz . Jose OrtizArana, the former's brother, with this. he was slandered to destroy his political career and is director of Migration Affairs in the Interior Ministry, thanks at the same time to g ive propaganda ammunition to the Na­ to his friendship and political alliance with the head of that tional Action Party. especially to Manuel Clouthier, the PAN ' s ministry . candidate for state governor, and his masters at the U . S. State Another walking free is Miguel Angel Felix Gallardo, Departmentto support their "protests"that there was "fraud" the mafia chief who ordered the assassination of U.S. Drug in theelections . Enforcement Administration agent Enrique Camarena Sala­ The PRI candidate for state governor, Francisco Labas­ zar. Gallardo is related to former Sinaloa governorLeopoldo tida Ochoa, was also slandered so that he would give political Sanchez Celis. All informed Sinaloans know that he is want­ concessions to the PAN and to the narcotics traffickers of the ed by law enforcement agencies, but that he wanders freely stateof Sinaloa, who areon the loose without anybody daring through the state of Sinaloa without anybody touching him .

. to do anything to them . The same happens with Jaime Herrera Herrera in Dur­ There is no doubt that behind the political "maneuver" of ango. He is the country's most powerful heroin and cocaine the airest of the brother of Dr. Samuel Ocana, lies a plot to trafficker. He was arrested by the army at the beginning of throw him out of national politics. Dr. Ocana, who is not tied the year and released by a federal judge in return for a large to any political or economic group, is a patriot, one of the sum or some order from above. The Attorney General's Of­ few who remain in the current regime. fice, had the judge investigated, but nobody has renewed On the other hand, he has many powerful political ene­ pursuit of Jaime Herrera, due to his association with political mies inside and outside the state of Sonora. groups like that of former state governor Armando del Cas­ The doctor has several political enemies in the current tillo Franco. Sonora government of Rodolfo Felix Valdez. In the Under- We could continue with the list, and we will.

44 International EIR November 14, 1986 the documents had been signed in Iceland, the situation might have improved." Sovetskaya Rossiya gave , of course, the "party line" reply, that the Soviet Union will,· under no cir­ Soviets seem to cumstances, give in on SOL Two days before these planted items, Soviet M�hal squabble on SDI Nikolai Ogarkov-the military cOminander-in-chief of So­ viet forces facing the U.S. and NATO-resurfaced with his by Konstantin George first published article since he left the post of Chief of the General Staff in September 1984. Ogarkov' s article·appeared on Oct. 28 in the new monthly Military Bulletin of Novosti. There is a pronounced recent pattern in both Soviet media Its theme was a categorical assertion that the Soviet Union coverage per se , and, significantly, Soviet media censorship possessed a sufficient economic and technological level to of General Secretary Mikhail Gorbachov, indicating a fac­ "technologically solve even the most complicated defense tional shift in Soviet policy-making strata. There is evidence tasks" -a singularly clear reference to the Soviet SOl-and of at least a lively discussion among the Soviet leadership on "in the shortest possible time" add to its arsenal of weapons, President Reagan's offer-repeated at Reykjavik-to ne­ "new types of weapons"-a second singularly clear refer­ gotiate a co-deployment of the Strategic Defensive Initiative ence. Ogarkov then called for equipping the Soviet Armed (SOl) with Russia. Forces with weapons of "the highest technological quality," Jbe first piece of evidence is, ironically, provided by through increased military expenditures to produce new Gorbachov himself. After his return from the Reykjavik weapons, equal to performing "complicated defense tasks"­ meeting, which he had torpedoed by rejecting Reagan's SOl the third reference to the Soviet SOL offer, Gorbachov gave a televised address to the Soviet pop­ Central Committee member Ogarkov' s demands run dia­ ulation. I.n that speech, for the firsttime ever, a Soviet general metricallycounter to the line advanced by CentralCommittee secretary informed his subjects that President Reagan offered member Georgi Arbatov, head of the Moscow U. S .A.-Can­ to share SOl technology with the Soviet Union and jointly ada Institute, who has bemoaned the SOl as an "American deploy such an ABM system. Gorbachov promptly stated his attempt" to "weaken" the Soviet economy. rejection of Reagan's offer, but grounded his opposition on Prior to Reykjavik, the first (September) edition of No­ very shaky premises, saying: "How could we believe such an vosti's Military Bulletin contained an article by Ogarkov's offer . ..when the United States will not even supply us replacement as Chief of the General Staff, Marshal Sergei modem oil drilling technology ...or modem milk-produc­ Akhromeyev, which attacked Gorbachov's nuclear test ban ing equipment?" policy. Akhromeyev insisted that the Soviet nuclear test ban Whether intentionally or not, Gorbachov thus left the had "inflicted a certain amount of damage on the Soviet door wide open for President Reagan to make offers in the Union." Not only the various articles of Novosti's Military realm of modem civilian technology transfers that would tear Bulletin, but indeed the very decision to launch such a pub­ to shreds Gorbachov's pathetic objections. lication is evidence of possible policy shifts in the making. The second important evidence of policy-making circles' There is another clinical pattern of coverage in the Soviet anger at Gorbachov's obstinacy on the SOl question, ap­ media over the past two to three months. MikhailGorbachov, peared in the Oct. 30 edition of the Central Committee­ in various speeches delivered in different parts of the Soviet controlled newspaper, Sovetskaya Rossiya, the leading daily Union, referred to the "NEP" (the "New Economic Policy" for the Russian Republic of the Soviet Union, in the form of of the 1920s , the first heyday of Bolshevik-Trust collabora­ a description by SovetskayaRossiya ' s Reykjavik correspond­ tion). Until late October, the term NEP was invariably cen­ ent of questioning he was subjected to at a meeting of the sored out of the text in the coverage retailed in the Soviet Union of Soviet Film Makers . He was asked: "Several years media. There are other equally noteworthy cases of censor­ ago, Reagan declared that he would not give up his space ship of passages from Gorbachov speeches over recent project [the SOl] . In view of the fact that we arrivedat certain months. compromises at Reykjavik, wouldn't.it have been worth the The pattern of media censorship of Gorbachov is a phe­ effort to add another compromise and stop insisting on the nomenon unknown in the Soviet Union since the time of 'Star Wars' issue?" Khrushchov. We would be very carefulagainst drawing any rash conclusions fromthese phenomena. It may all be only a Hard line on SDI questioned grand deception, or mostly deception. If so, one must com­ The same Sovetskaya Rossiya carried a letter, from a ment that it represents a deception on an elaborate scale not woman reader .in the city of Kirov, castigating Gorbachov seen before. Adding to the mystery, October has come and for not having "given in" on the SOl issue at Reykjavik: gone without a Central Committee Plenum, normally sched­ "Wouldn't it have been better to have given in on the SOl? If uled for the second half of October. Why?

EIR November 14, 1986 International 45 ship Captain Thomson , which turned out to be the "biggest dope seizure in history"-destined to the West-more and more dope-producing areas have been disclosed. In Central Asia: vast poppy-fields in Kazakhstan, Turkmenistan, Tad­ jikstan, and Uzbekistan. In the European U.S.S.R., the vast AIDS fear behind poppy-fields lie south, in Georgia and southern Russia, from' Krasnodar to Stavropol, the old fiefdom of Mikhail Gol'ba· Soviet war -bn drugs ? chov. by Luba George Gorbachov's 'glasnost' campaign All these disclosures are occurring under the instructions of Gorbachov's glasnost (openness) campaign which de- - In an important ideological turnaround, the Soviet Union is mands that the negative and corrupt side of Soviet society be now admitting it has a massive drug addiction problem. For brought into public light. The question is nonetheless posed: decades, drug addiction was officiallydescribed as a "disease Why is the Soviet leadership so insistent on stressing specif­ of capitalism"; the few cases the Soviet authorities were ready ically the drug addiction problem in its glasnost campaign? to admit were explained away as "unfortunates" who had The answer, according to well-informed Kremlin watch­ been given morphine derivatives as painkillers under medical ers , is contained in one word: AIDS . Glasnost on drug addic­ supervision, and afterwards failed to report to their doctors tion is directly related to parallel Soviet media and pOllcy that they still had a craving for the drug. Last June the veil shifts on the AIDS question. Moscow no longer denies it has was dropped when the communist youth paper Komsomol­ an AIDS problem, and in all Soviet coverage on AIDS , the skaya Pravda suddenly confessed that a major addiction high AIDS rate among intravenous drug users in the West problem exists and that Soviet society "must get rid of old has alw.aysbeen heavily stressed. On June 25 , the director of taboos." the Moscow Institute of Vir()�ogy_ Viktor Zhdanov told the The June 8 article proved to be but the beginning of a international conference on AIDS in Paris thaithe U.S.S.R. deluge of sensational disclosures-both in the Soviet media was starting systematic screening of blOOddonors and trying and in reported speeches of high-ranking party officials. to discover which groups had a high risk of catching . the • Komsomolskaya Pravda of June 8 disclosed the exis­ disease. tence of "illegal drug dealings" as well as identifying"illegal The Russian first lady, Raisa Gorbachova's, favorite crops of poppyfields in the Kuibyshev [middle Russia] region writer-friend, Chingiz Aitmatov, has-with an obvious go­ on the Volga, 1,000 kIn north of the Caspian Sea ....As ahead from the top-spearheaded the Soviet anti-drug cam­ soon as the poppy fieldsof the southern Soviet Union come paign with his new novel introducing for the first time the to flower, they are overrunby 'tourists:-addicts from Or­ theme anasha (hashish). Until Aitmatov's novel, anasha, enburg, Orel, Krasnodar, and even as far away as the Baltic was on the list of themes banned by Soviet censorship. Ait­ Republics (2,000 kIn away)-collecting the poppy heads. matov (from Kirghizia) was recently elected to the executive They come in groups in trucks, cars , motorcycles." bureau of the U.S.�.R. Union of Writers . He sits, with Raisa • For the first time a Politburo member, Boris Yeltsin, Gorbachova, on the founding committee of the new Soviet admitted in a speech that in the city of Moscow alone there Culture Foundation. are 3,700 drug addicts registered. (In 1984 leading Soviet In his new novel Plakha (Executioner's Block), publi­ narcologist Eduard Babayan claimed that there were "only cation of which started in the June issue of the journalNovy 2,500drug addicts in the entire U.S.S.R.") Mir which prints a run of 427 ,000 copies, Aitmatov takes the • The Soviet Union's chief state prosecutor, Alexander reader into the "no-go" area-the world of "anasha people," Rekunkov warnedthat in the Soviet Union, "Drug addiction where, for the firsttime ever, the Soviet Union's huge, com­ cases are by no means rare" (Zhurnalist, Moscow No. 51 plex, ramified system of trade in anasha (and opium) is 1986), and added: "Reservations in handling them have led portrayed in astounding detail, with no thought for "alleged to understating the danger and to a false evaluation of the considerations of our society's prestige." He describes in serious consequences." detail the hemp-anasha-growing in the Muyunkium and Chu • New Times (Nov. 3, 1986) Prof. Nikolai Ivanets, Steppes of Kazahstan; the "Kazan station," where "a turbid chairman of the Soviet "Drug Addiction" Commission, spoke concentration of evil" makes its nest. This, he writes, is the about the "alarming" drug-abuse problem in the U.S.S.R. all-Union transshipment point for anasha, the hub for the andthe need to "block all channels for the distribution of distribution of the Kirghiz drug to all comers of the country, drugs and to conduct a well-plannned campaign explaining "fromArkhangelsk to Kamchatka. " There are social portraits the need to combat this evil. " of the anasha people-dealers, pushers, and addicts, their With the recent seizure in the Netherlands of the Soviet methods, and their jargon.

46 International EIR November 14, 1986 Syria, the United States, and France: Whose game is it? by ThierryLalevee

The importance of West Gennan Chancellor Kohl's denun­ ez al Assad's brother Rifaat, Vice-President Abdel Halim ciation of Gorbachov as a new GOtfbbels (see International Khaddam, and Defense Minister Mustafa Tlas. Intelligence. p. 62-63) seems to have been missed by the A result of this faction fight, say the rumors coming from specialists dealing with terrorism and the delicate negotia­ Damascus, would be Hafez al Assad's lack of control and tions over the Western hostages in the Middle East. True to knowledge over what his intelligence services do. Secondly, their backers in Moscow, the Syrianand Iranian leaders have since last spring, the Syrian leadership began floodingWest­ been engaged in a Goebbels-style psychological-warfare ern capitals with reports that it wanted to loosen its ties with campaign of deceit, whose main aim has been to gain Mos­ Moscow, even to break them ! The craftsman of this campaign cow time to achieve its regional ambitions . was Defense Minister Tlas, a Soviet-trained hardliner, who Su�h campaigns are also aimed at setting Western gov­ told French officials in the spring that Damascus wanted ernments at each other's throats. Well-organized "leaks" on Western weapons. Granted the Soviet training of the Syrian new military contracts between France and Syria led to a army , Tlas implied that Damascus would want technical ad­ raving anti-French editorial in the Washington Post on Nov. visers too. Indeed , in no other way could the Syrian soldiers 3, which characterized the French leadership as "traitors" handle the French AMX tanks that he requested. and "cowards." The French government, through its ambas­ Since then, the rumor campaign has gone on unabated. sador in Washington, had to react officially the following The predictable result has been to gain Damascus what it day. This coincided with well-documented revelations com­ wanted: time, money, and credibility. ing fromTeheran that Washington has been negotiating along with the mullahs, even delivering plane-loads of weapons. War preparations Similarly, while Britain has been on the front line of the Nonetheless, the game may be over soon. Several intel­ offensive against Syrian involvement in terrorism, and the ligence sources have confinned that the Soviet Union has Thatcher government fonnally broke diplomatic relations installed two radar stations in the Lebanese Shouf mountains, with Syria on Oct. 24, Britain is welcoming sometime in controlled by Druze warlord Walid Jumblatt. The two sta­ mid-November a new Iranian charge d'affaires. While some tions, which monitor the region from the Israeli Mediterra­ Western countries believe they can play their "Iran" or "Syr­ nean coast to Jordan and up to Iraq , are manned by actual ian" card , Damascus and Teheran have become experts at Soviet technicians in disguise. In short, the Druze have leased playing their own "Westerncards ." French reporters , coming part of their territory to the Soviet Union! The implications back on Nov. 3 fromthe hotbed of international terrorism in are very serious. Not only is the presence of Soviet techni­ theBekaa valley in Lebanon, underlined the precise and often cians in Lebanon an evident breach of Lebanese national insightful knowledge of the terrorist leaders on the particular sovereignty, but it underlines Syria's war preparedness. Such internalsituation of each Western country. stations have no other purposethan to provide an early warn­ ing system against an Israeli attack. Syrian deceit That should come as no surprise. The early October cel­ The masters at the game of duplicity have been undisput­ ebrations of the Yom Kippur 1973. war led to an orgy of war ably the Syrian leaders , who have 'succeeded in maintaining cries in Damascus, from Chief of Staff Hikmat Shehabi to an aura of credibility, despite the British revelations on their Baath Party Secretary General Mohammed Ahmar announc­ role in the Hindawi terrorist case (see EIR , Oct. 24 and Nov. ing, "Damascus has reached strategy parity with Israel." As 4). Key to that game has been a well-organized campaign out we previously reported, these are no mereboasts , but state­ of Damascus, first underlining the so-called factional fights ments based on military reality: In the last six months, Syria between the Assad Alawite clan and the Sunnite majority, has received additional deliveries of SAM-5 missiles, new and within the Alawites themselves, especially between Haf- batteries of SS-23 and SS-21 -the new generations of their

EIR November 14, 1986 International 47 "Scud" and "Frog" missiles-and a preliminary pair Of the advanced MiG-29 jetfighters , primarily for training and test­ Interview: S. C. Birla ing. During October, the Syrian army held two sets of large­ scale maneuvers . In the firstweek of October, there were the largest-evernaval maneuvers off the coast of Latakia , attend­ ed and closely monitored by a Soviet team. Following the high-level visit on Oct. 19 of Colonel-General Pankin, Chief 'An unprecedented of Staff of the Soviet Air Force, the Syrian Air Force began another series of maneuvers in the northern region. Accord­ violation of rights' ing to intelligence reports , these maneuvers aimed at testing the coordination between the air force and the anti-aircraft The fo llowing statement by S. C. Birla, an advocate in the artillery units which have responsibility for the new ground­ Indian Supreme Court, is being distributed to lawyers,jud ges, to-ground missiles. and concerned citizens, with the recommendation to send telegramsto the Reagan administration, the Senate Judiciary Committee, and the House JudiciaryCommitt ee.

While some Western countries On Oct. 6, 1986, U.S. federal marshals, Virginia State troop­ believe they can play their "Iran" or ers , and other law-enforcement personnel raided the offices "Syrian" card, Damascus and in Leesburg, Virginia, and Boston , Massachusetts , of several b organizations associated with Mr. Lyndon H. LaRouche, an Te heran have ecome experts at American political figure and economist known for certain playing "Western cards." views on the need for a new economic order and progress of underdeveloped countries, especially countries of Asia, Af­ rica, and Latin America. The Oct. 6 incident was unprecedented in the history of

The persons directing and planning such maneuvers have American administration in respect of enforcement of law , been the very same as those involved in deploying interna­ as the number of armed troopers and complement of helicop­ tional terrorism. Indeed, Air Force intelligence commander ters and armored personnel carriers, etc., were those gener­ Maj.-Gen. Mohammed al-Khouli, whose role in running the ally used to crushreb ellions, not against people who believe planned terrorist atrocity of last April was conclusively prov­ in human rights and civil rights and who very much abide by en in the recent Hindawi trial in London, was appointed in American laws . The action of U.S. authorities was very much recentmonths as the acting chairman of the National Security vindictive and aimed to finishdissent by using might. Council, chaired by President Assad. A close associate of On that day, the two offices associated with Mr. La­ Assad, Khouli is the hierarchical chief of Maj.-Gen. Subhi Rouche were ransacked and sealed, while several tons of Haddad, the Air Force Chief of Staff. documents were removed by the authorities. All work in the Morever, his position of command at the NSC puts Khou­ offices was stopped . Ii above such figures as Vice-President Rifaat al Assad or It is evident that the privacy of the democratic organiza­ Defense Minister Mustafa Tlas . The NSC is also the body tion has been violated . We understand that in crimInal juris­ which controls thedeployment of the entire Syrian army, and prudence seizure or searchis done when we expect that some­ the national police in times of war. It controls not only the thing contraband or illegal is to be found, and it is not used paramilitary "Defense," "Struggle," and "Republican" guards for depriving the democratic rights of the people who are in Damascus, but also the six Command areas of the Syrian functioning democratically. The grand jury system in the army, the Special Units, the Coordinating Staff dealing with United States is to protect the citizens' rights, and should not the administration, logistic, research, and local military in­ be used to persecute and harass individuals and organizations telligence, as well as the two corps headquarters of the armies fu nctioning within their democratic rights. deployed in the Golan Heights and in Lebanon. We feel that the United States, which is the torch bearer This very coordinated and centralized hierarchy leaves of liberty, should not become a place where civil rights are no room for personal initiative. Under the control of Khouli' s violated as was done in the incident of Oct. 6 in Leesburg, NSC, the Coordinating Staffof the army has gone quite far, Virginia. according to Israeli reports, in equipping Syria's missiles • In India, lawyers stand for a rule of law, constitutional with chemical warheads. The threat is taken very seriously guarantee for the fundamental rights of freedom of speech, by the Israelis, who completed on Oct. 31 their first large­ freedom of expression, etc., which we have borrowed from scale maneuvers on the Golan Heights, equipped to fight a the American Constitution. We are shocked to know and read chemical war. about the vindictive, ruthless action of Oct. 6. We support

48 International EIR November 14, 1986 all freedom-loving and civil-rights supporters of the United States in their call to condemn the U. S. administration's action. Indian lawyers and judges are with the people of the Investigatiol}9f TJ.S. United States who at last will protect the tradition of liberty and civil rights established by Thomas Paine, Benjamin human rights vi,latl_"",�, Franklin, and other founding fathers of the United States.

EIR is pleased to present an interview with S:"C.,Birla On Nov. 5, 1986, Mr. BirLa granted the fo llowing interview of India. He is one of the prominent who havt to EIR's Susan Maitra in New DeLhi. jurists joined an"International Commission to InvestigateSo- , viet-Style Human'RiglltsViolations Inside tile U.nitod ": EIR: You, Mr. Birla, have endorsed the commissioning of States," announced OI{Oct. 29 at press confere � 1b an international inquiry on the raids that took place in lees­ Washington, D.C. and in 27 other cities burg, Virginia. What more do you think can be done now? atO\IDd , � world. " . .' , Dirla: After commissioning an international inquiry with The Commission's formation }Vasprompted by Ji:: respect to the incident on Oct. 6, 1986, a regular sitting cent U.S. goyernment . �tions .again�t Uie inquiry commission is urgently required to go into the details politic � movement aroundLyndon H. ," of the incident. Public opinion should be mobilized against LaRbuch ef Ji.)bUt lthU . a broad mandate to investigate all such abqses �� < the violation of human rights and for the rule of law. out against potential PQliticalopponents of tbe ,gove :, ment. ,. . . ,,, ' .,' , EIR: You are a lawyer in India, a developing nation. His­ Interviews :withother members ofthe Commi �n,­ torically, both in the United States and in India, lawyers have -. has. its . played a key role in social reform and justice. What 'do you which activefybegun investigation, ,,,!ll�:<,;: fo�coming issues. -: .) :' think is significant in the role that Indian lawyers are playing in now? Dirla: Lawyers in India have always remained in the fore­ front of the freedom movement, and have always been in the EIR: Political victimization was apparently the plan behind leadership of different social and political organizations this raid. What do you believe is the way to fightsuch injus,- working for social ref

following Independence, utilizing the forum of the courts to Dirla: As far as victimization by authorities is; concern�, , ' ';•. , seek justice against the violation of the fundamental rights we here in India have had much experience befQieltideperi.i enshrined in the constitution ofindia, and the class oflawyers dence with this problem; and it can be fought Qut bytaking .

has always identifieditself with the people of the world for a people into the fold of broader organizations: The, press, : similar cause. public meetings, conferences, and seminars, and so forth ate popular ways for securing justice. EIR: The United States is on the other side of the globe from India. What do you think is the significance of your endorse­ !

ment and protest against various violations that have been . � , committed against Mr. LaRouche and associated organiza­ tions? EIR Dirla: The significance of the commission's endorsement by Indian lawyers and intelligentsia and our expressionagainst SpecialReport the various violations, is that it makes the people of Asia come in behind the cause of people in the United States and Latin America. An Emergency · . · ·'k . EIR: What has been the response among Indian lawyers to the human rights violations in the United States in the La­ War Plan to Fight '. ' : Rouche case? , . Dirla: The incident of Oct. 6 in Leesburg was widely re­ " ported in the world press, though not in newspapers in India. Lawyers who were informed about it and read about the AIDS incident were very much shocked. The lawyers have ex­ pressed their solidarity with the lawyers and intelligentsia of $250.00. Order from: EIR News Service, P.O. Box other countries who have endorsed the call for a commission 17390, Washington, D.C. 20041 -0390. Order #85020 of international inquiry.

EIR November 14, 1986 I International 49 Part II of a Series

The 'bankers' CIN and the Russian lobby after the Leesburg raid by Criton Zoakos

During the first week of November, Soviet KGB agent Dr. condemnation of Prop 64 , which he circulated in California Armand Hammer ran a "gray propaganda" disinformation just prior to the election, on behalf of Dr. Hammer and Dr. operation through the U.S. Information Agency (USIA) Mathilde Krim. chaired by his agent, Charles Z. Wick. The operation was in relation to high-level diplomatic maneuvers now in progress KGB anti-dez;nfo rmatsia lobby in Washington between the United States and the Soviet Union, involving Charles Z. Wick employs in the USIA one Herbert Rom­ probes to ascertain the possibility of superpower cooperation erstein, a former Communist Party youth leader, as an expert against the species-threatening AIDS epidemic . for combatting KGB dezinJormatsiapro jects. His credentials The first person to broach the issue of superpower coop­ for the job were supplied by Roy Godson, formerly of the eration against AIDS was Lyndon LaRouche , first prior to National Strategy Information Center, and more recently, the Reykjavik summit, and later, in a memorandum pub­ head of a project to study Soviet dis information techniques lished in EIR on Oct. 24, 1986, under the title "Parameters at Georgetown University'S Center for Strategic and disin­ for U. S.-Soviet talks on AIDS pandemic." Hammer and formation techniques at Georgetown University's Center for LaRouche had already, prior to the Hammer-Wick "gray Strategic and International Studies, the current home of ex­ propaganda" operation, been bitter adversaries on the subject National Security Advisers Robert McFarlane, Zbigniew of AIDS. LaRouche, of course , was the most prominent Brzezinski, and Henry Kissinger. Roy Godson, Romer­ supporter of California's Proposition 64, which was calling stein's patron, is also a "former communist," strongly influ­ for universal screening and other urgent public health mea­ enced, throughout his life, by Jay Lovestone , one of the sures. Hammer, was the chief funder of the opposition to founders of the Communist Party-U.S .A., together with Dr. Prop 64. Hammer is the funder of the American Foundation Armand Hammer's father Julius Hammer. for AIDS Research, directed by the wife of Hammer's part­ Herbert Romerstein, as member of a State Department­ ner, Dr. Mathilde Krim. Krim and the foundation have led USIA Interagency Working Group on Soviet Disinforma­ the opposition to Prop 64 as "dictatorial." tion, traveled to London some time after Surgeon-General Hammer, friend and funder of USIA Director Charles Z. Koop's returnfrom Moscow, and discussed with an associate Wick, had, earlier in the year, introduced Wick to a KGB of his, Ian Elliott, editor of Soviet Analyst magazine, a project colonel named Yuri Koshlov and the three, Wick, Hammer, to discredit Dr. John Seale, a member of the Royal College and Koshlov, in the context of a variety of "cultural" and of Physicians and outspoken backer of Proposition 64, as a "humanitarian" agreements, arranged for Surgeon-General "Soviet disinformation channel." On Oct. 31, Ian Elliott, C. Everett Koop, Dr. James Mason of the Centers for Disease citing "ex-communist" Herbert Romerstein as his authority, Control, and Dr. James Wyngaarden of the National Insti­ alleged that Dr. Seale had charged that "U. S. intelligence" tutes of Health to visit the Soviet Union, before the elections, had artificially manufactured the AIDS virus and that that and hold discussions on the subject of AIDS cooperation. allegation had been picked up by Soviet publications which, That visit, from Oct. 3 to 13, took place after LaRouche had supposedly, were about to have a propagandistic field day . strongly recommended that President Reagan, at the then­ Though Dr. Seale protested the absurdities of the Ian upcoming Reykjavik summit, make certain proposals to Gen­ Elliott piece, three days later, at a State Department briefing, eral Secretary Gorbachov on cooperation against AIDS. Koop Herbert Romerstein' s slander reappeared under new wrap­ and the rest returned from Moscow with strong messages of ping. Department spokesman Charles Redman presented a

50 International EIR November 14, 1986 document, produced by the Interagency Working Group on tive." Don Regan's principals, just as we at EIR , fully well Soviet disinformation , denouncing the Soviets for alleging recognize that a serious, effective assault against the AIDS that the U.S.A. artificiallyproduced the AIDS virus for bio­ epidemic, will require the mobilization of economic re­ warfare purposes. So far , so good . But, inside the otherwise sources on a scale beyond that permitted by the interests of very truecharges against the Soviet disinformation practices, the banks . was embedded the lie that Dr. Seale was part of the Soviet Similarly, on the subject of Great Russian chauvinist disinformation campaign. cultural promotion: There is a deal between the Eastern Es­ tablishment banking leadership and the Gorbachov-Ogarkov What are all these 'ex-communists?' leadership in the Kremlin, which could bestbe labeled "The "Ex-cominunist" Herbert Romerstein, a protege of "ex­ Trust," after the 1920s deal between New York and Boston communist" Roy Godson, himself a man trained in intelli­ bankers and Lenin's Bolshevik government, which had the gence by "ex-Communist Party fo under" Jay Lovestone, is blessings of Robert Lansing, Woodrow Wilson's secretary employed by Charles Z. Wick, the friend of "ex-Communist" of state-an uncle of John Foster Dulles. The "Trust" of the Armand Hammer. USIA chief Wick is the offspring of a 1920s was a scheme of joint-stock companies which laid the Central European "ex-communist" family originally named foundation for the subsequent growth of Russia's warindus­ Zwick. This is one hell of a patriotic group to pronounce tries. The "Trust" we see evolving today aims for the estab­ expertise on the subject of Soviet "dis information" tech­ lishment of a nominally Moscow-centered imperial arrange­ niques. ment, in which the combined forces of international bankers This little Romerstein caperwould have been an amusing and Moscow will eradicate the legal formsof nation-states. prank, had it not involved two serious matters , namely: first, the fact that the USIA, traditionally a branch of CIA opera­ Don Regan and McFarlane in Iran tions abroad has been, under the joint Wick-Hammer man­ Armand Hammer's Occidental Petroleum's investment agement, been functioning as the conduit of exactly the kind banker is First Boston Corp. of New York, a company with of propaganda that the Kremlin leadership finds suitable in very good relations with Regan's Merrill Lynch, and one its current drive to whip up Great Russian chauvinism in its which shared with Mr. Regan the absorption of White, Weld population; and , second, it touches on the critical strategic some years back. It should be recalled that both Armand issue of the species-threatening menace of AIDS . Hammer and the New York: banks, especially Citibank, played Both of these matters of paramount national security im­ a unique role, during the Carter period, in bringing about portance, AIDS, and the Great Russian chauvinist cultural both the Khomeini Revolution and the mysterious U.S. arms offensive, are closely linked with White House Chief of Staff shipments to Iran , which, with the recent involvement of ex­ Donald T. Regan-Wall Street's man in the White House. national security chief Robert McFarlane, arenow occupying No one is about to accuse this former marine of having any newspaperheadl ines. medical expertise or any cultural interest in, say, Rimsky­ The role of the Establishment banking community in the Korsakov . However, to understand why so many "ex-com­ emergence of Khomeini's Iran, when fully revealed, will, munists" are in and about the Reagan administration, one one day, prove to have been identical with the same banking must give some thought to the circumstances under which community's role in financing and promoting the Bolshevik Donald Regan, "ex-Democrat" chairman of Merrill Lynch, Revolution of 1917. For the time being, certain salient ele­ was parachuted into the Reagan camp. ments have been established which prove conclusively that During the 1979-80 "transition period," the senior New Khomeini was put in power by the Trilateral Commission York bankers made a major effort to force Reagan to name behind the Carter administration. Walter Wriston of Citibank either secretary of state, or direc­ The relevant point for the case of Don Regan: We are tor of the CIA. Failing in this, the bankers succeeded in reliably informed that Don Regan is the White House official imposing Regan firstas treasury secretary and later as White who personally promoted the White House/NSC project of House chief of staff. They also extracted a promise from the shipping weapons to Iran . Contrary to current newspaper President-elect that he would keep Volcker at the Federal stories, these shipments were much larger than indicated by Reserve and that he would not interfere in certain banking the transactions involving the freeing of hostages Weir,Jen­ policies, which were to be safeguarded by Donald Regan. ko, and Jacobsen. Also contrary to current stories, these Regan, from the beginning, has been the banking commu­ weapons shipments from the U.S.A. did not begin in July nity's overseer of the Reagan administration. 1985-they had begun immediately afterthe Khomeini rev­ In this capacity, he has some definite views on AIDS and olution in 1979 and continued uninterruptedly throughoutthe on Russian nationalist culture . On the subject of AIDS, Re­ Carter and Reagan presidencies. gan intervened to suppress both research into the .causes of EIR has been involved in extensive litigation for a number the spread of the virus as well as research that would lead to of years against one Cyrus Hashemi, a cousin of Ayatollah development of a cure. His reason for this is: "Cost Prohibi- Ali Akhbar Hashemi Rafsanjani, because we had accused

EIR November 14, 1986 International 51 Hashemi of shipping weapons to Iran both during and after ment's banking system. the Carter administration, from 1979 through to 1986, the Nobody to this day, certainly not President Reagan, knows year of his mysterious and unexplained death in London. In what the U.S.A. had to sign away in order to permit the his litigation against EIR , Hashemi enjoyed the good legal bankers and Khomeini to secretly loot the unaccounted for services of persons associated with both the FBI and the CIA $2 1 billion. Whatever it was , it has very much to do with the who were providing cover for his operations. errands that Robert McFarlane is now accused of carrying How could the U.S.A. have been shipping weapons to out on behalf of White House Chief of Staff Donald T. Re­ Iran , stated U.S.A. policy to the contrary? And did President gan. Reagan know about it? Our educated guess is that President Reagan did not know . In all probability, he had been told of Bankers' CIA and 'revolutions' only some very limited shipments of "spare parts" for the The "bankers' CIA," or "Trust," or "Submag," or what­ purpose of one-to-one exchanges of the three above-named ever other appellation has been employed at various times, hostages. In all probability, Don Regan knew and sanctioned refers to an existent, political organization of powerful pri­ the much larger shipments of weapons to Iran and , having vate financialinterests and not to any particular governmental obtained the President's approval for the more limited hos­ agency. It has no charter, no Table of Organization and tage-exchange-related shipments, helped create the decep­ Equipment within the U.S. government. It certainly, how­ tive coloration of presidential approval for the larger deals. ever, has been majority-dominant in the CIA's "supergrades" Don Regan, during the 1979-80 transition period, knew ever since John Foster Dulles maneuvered Gen. Walter Bed­ the fo llowing matter that President Reagan did not know: A dell Smith out of the CIA in 1953, and installed his emotion­ few hours before leaving office forever on Jan. 20, 1981, ally dependent brother, Allen Dulles. Jimmy Carter signed a major agreement of financial claims Therein lies the secret of all those "ex-communists" cur­ settlement between the U.S.A. and the Islamic Republic of rently in the Reagan administration. Under the rigorous cri­ Iran which led to the release of the U.s. Teheran Embassy teria established by "Beetle" Smith Armand Hammer, for hostages after 444 days of captivity. That major agreement example, would still be considered a Soviet agent. Under was binding the United States to certain obligations, some of Dulles, as ex-CIA officers Tom Braden, Cord Meyer, and which were to be specified later, and others which were to be others have freely, publicly ackowledged, one of the most kept secret. Essentially , it was an agreement binding the populous "Clandestine Services"capabilities was organized U.S.A. to certain secret protocols which were to be spelled under Communist founder Jay Lovestone, who brought in­ out "at a later time. " especially into AIFLD, a self-proclaimed CIA front-a great EIR has reason to believe that some of these secret agree­ number of so-called "ex-communists" of the Herbert Rom­ ments bound the U.S.A. to obligations to supply Khomeini's erstein and Roy Godson variety . These were communists Iran with various types of weapons and spare parts . At any belonging to the Thomas Lamont and Corliss Lamont wing rate, it has been ascertained that, since the signing of the Jan. of the U.S. Communist Party , the one run by J. P. Morgan 20, 1981 agreement, numerous U.S. Port Authorities have & Co. bank. Thomas Lamont was the Morgan Bank official set aside certain "free zones" which the U.S. Customs Ser­ who in 1926 gave the Morgan account to Sullivan & Crom­ vice is not permitted to inspect, through which illegal weap­ well, as soon as John Foster Dulles became the law firm's ons shipments to Iran are assembled. senior partner. The "ex-communist" designation of the Mor­ At any rate , what is publicly known about the U.S.A.­ gan-Lamont agents merely denoted that for 1936 to 1942, Iran agreement signed by Carter on Jan. 20, 1981 is this: The Morgan and Stalin had a c�rtain disagreement on strategic agreement was not negotiated by the U.S. government, but policy. by a committee of Establishment banks and their law firms. The story of Morgan, Schiff, Sullivan & Cromwell insti­ The major players were Citibank, Morgan Guaranty, Manu­ gation and support for the Russian Revolution, when exam­ facturers Hanover, Bank of America, Chase Manhattan, etc . , ined carefully, is virtually identical with the story of how the 12 in all. These banks, led by Citibank, Chase, and Morgan, same Establishment banking powers launched and managed began secret negotiations with the Iranians almost exactly the Khomeini revolution. In fact, other, minor "revolutions" one week after the takeover of the U.S. embassy in Teher­ during the 20th century, bear the same characteristics. The an-unbeknownst to either the U.S. government or the pub­ pathetic "peoples' power" charade this year in the Philip­ lic. Only after Reagan won the 1980 election, did Khomeini pines, had more to do with John R. Stevenson of Sullivan & announce that the hostages would be freed if the U.S.A. Cromwell and with insurance tycoon "Hank" Greenberg than handed over to Iran $24 billion of assets belonging either to with Mrs. Aquino's charisma. Similar findings will emerge the Iranian government or to the Shah's family. from scrutinyof the 1969 Qaddafi "revolution" in Libya-in By January of next year, of the $24 billion demanded, which Chase Manhattan's Archibald Roosevelt supplied a Khomeini got only $3 billion net-the balance of $2 1 billion lucrative deployment for KGB agent Armand Hammer. disappearing mysteriously into the bowels of the Establish- To be continued.

52 International EIR November 14, 1986 War on Narco-Terrorism

President Garcia calls citizens to fight 'from heights of victory'

by Val erie Rush

justice is lost; we need to put an absolute and final end to President Alan Garda has issued a call to every Peruvian these terrorists who come and go in the jails, and who are citizen to become "an active combatant" against terrorism. wreaking such death and economic havoc against the nation." Otherwise, he stressed in a televised interview, "We will see While further details of the measures have not been re­ our system gradually undermined ." vealed, they have already received widespread supportinside Peruvians have reason to be angry . On Oct. 14, former Peru . Members of the judicial branch expressed immense Peruvian Navy chief Admiral (ret .) Geronimo Cafferata was relief that concrete action would be taken to allow it to func­ murdered by terrorists; since then, assassination plans against tion with integrity, and the armedfo rces closed ranksbehind 50 other prominent Peruvians have been discovered. Garda, describing the measures as "a brilliant response" to On Nov. 1, in a speech to a gathering of mothers' clubs, the people's demands for action. President Garda made this appeal to citizens to mobilize on behalf of the national interest: Mafia advance in Colombia "I want to be President of a nation victorious over it­ The drug mafia has launched its bid for governmental self ....I say that each one of us, looking within ourselves, power across the continent. But thanks to Garcia's example, can find reasons to feel like men and women of our own in Colombia, where the narco-terrorist threat to the national century , to feel like human beings. I say therefore that it is institutions is perhaps most advanced, there is a small but within our capacity to create a generation of men and women vocal chorus of demands for President Virgilio Barco to end with a victorious spirit, . . . to put aside the defeatism of those his equivocation and follow Garcia's lead. who have been overwhelmed by their sorrows. We are more Like Peru , Colombia has recently suffered the loss of one than our sorrows. Peru is greater than its own problems. Each of its "priceless men," as Garcia described the many victims one of us is much more than our pains. . . . We will fight of narco-terrorism. In fact, it was the mafia murder of the from the heights of victory. " respected Medellin superior court judge Gustavo Zulwiga Garda's speech could also have been addressed to citi­ Sernaon Oct. 30 that stirredColom bia's nationalassociation zens of neighboring Colombia, which on Nov. 6 was pain­ of judicial workers , Asonal, to issue its "ultimatum" to Bar­ fu lly reminded of the 100 victims, including 11 Supreme co: Court judges, of last November's narco-terrorist onslaught "Enough shows of mourningand lamentation ! This is the against the Bogota Justice Palace, now a blackened shell. moment to act, and that mission is yours, Mr. President. ... Colombia today faces a strong resurgence of the drug mob. Order the capture, Mr. President, of the known assassins, Garda's "call to arms" to Peru 's citizens was backed by and put the armed forces under your command. . . . If you a series of bold proposals which, if implemented, could set wage the battle against the enemies of justice and democracy, the pace for South America. Among them are the creation of Mr. President, we will back you. If you are silent, we judges special tribunals to try terrorists, headed by secretly chosen of the republic will remain even moreunprotected against the and highly protected judges , and the strengthening of the machine guns, and with us . . . Colombian society." Peruvian penal and legal codes to provide "drastic" penalties Speaking at the funeral of Judge Zuluaga, the president for terrorism and to halt the "revolving door" phenomenon of Medellin's superior courtJairo Terna echoed the warning so common in the jails of Peru, Colombia, and elsewhere on of Peru's Garcia: "The atrocious crime represents for the the continent. judiciary ...and for the nation a nearly irreparable loss, Garda motivated the proposed measures with a warning because respect for justice-the most abused public power that "the worst thing that could happen in a country is that in history-has been lost ....We must reflect on what a fear of the law, of judges and of the instruments of power and country without judges would be like ...."

EIR November 14, 1986 International 53 tNarco-tolerance' The justice ministry has alreadyannounced that it consid­ Asonal and Judge Terna were not only speaking of the ers the extradition treaty of higher constitutional standing narco-terrorist onslaught that has been threatening to elimi­ than any law. Nonetheless, it is widely recognized that ap­ nate the last vestiges of justice in the country . Their angry proval of the anti-extradition bill would represent the most statements are also a response to the growing environment of serious reversal for the anti-drug forces of South America, tolerance for the drug mob's inroads in Colombian financial which have looked to the precedent-setting war on drugs and political life. A governmentpr oposal for a tax amnesty launched by Barco's predecessor, Belisario Betancur, as a for "dirty money" is exemplary of the Barco government's modelfor them all. back-tracking in the war against drugs. So, too, is the rec­ ommendation of the National Narcotics Council, a depend­ encyof the Colombian justice ministry, for the suspensionof a highly successful herbicide eradication program against Documentation marijuana cultivation-under "environmentalist" pressures. Perhaps most telling of the degree to which the intensely On Nov. 2, Colombian newspaper EI Espectadorpublished Catholic country has succumbed to mafia blackmail is the an unusual editorial signed by owner and director Guillermo recentproposal of high officialsof the Colombian Church for Cano, excerpts o/ which/ollow: 80vernment dialogue with the drug mafia, modeled on pre­ vious peace negotiations with the guerrillas. As the daily We are at the point of co-existing with organized crime, of newspaperEl Espectador noted in a signed editorial on Nov. accepting it, be it legalizing its corruptbusiness deals, sitting 2, "the Church's generous office to the drug trade was an­ down with it at peace talks, or facilitating the conversion of sweredwith the assassination of another magistrate . . . . We pesos stained with the perversionof youth into clean Colom­ simply don't understand, though the pastoral language of the bian pesos, giving the seal of approval to the profits of abom­ Churchbe used, how, when and why there should bedialogue inable crimes. withthe drug trade." (See Documentation .) As opposed to what is said, what is in fact proposed lacks The editorial, signed by the newspaper's editor Guiller­ real effectiveness. If the drug traffickers today are absolved mo Cano, went on to challenge the inroads of the mafia in by an amnesty, their pasts pardoned, we will see that within government, financial, and political layers . El Espectador 24 hours their place will be taken by equally dangerouscrim­ hasalready been threatened by a spokesmanfor the powerful inals. That is why we cannot understand, though the pastoral Medellin-based drug mafia, Jairo Ortega Ramirez, the con­ language of the Church be used, how, when and why there gressman from the Medellfn crime capital whose chosen "al­ should be dialogue with the drugtrade . lernate"in Congresswas cocaineczar Pablo Escobar Gaviria There is a divine justice inclined to pardonthe repentant. But before the latter turnedfugitive . there is also a human justice which should judge those sus­ Ortega was used by the mafia three years ago, in 1983, pectedof atrociouscrimes ....Given that the drugtrade has to smear then-Justice Minister Rodrigo Lara Bonilla with nothing to do with politics, with social equality, nor with false corruption charges. Undeterred by the slanders, Lara ideologies, its crime . . . lacks any possible politicalor social Bonillacarried outan unprecedentedwar against drugs which justification. This horrid crime, in a society which considers threatened the financial godfathers of the Colombian drug itself more or less organized, should be punished by laws ttade, until he was assassinated by mafia gunmen on April which throughout the history of human society have estab­ 30, 1984.Congressman Ortega has denounced El Espectador lished civilized parameters, which man has organized for his forexposing his rolein that dirty affair, and pledged he would own defense. Centuries have passed since the law of the . "do it again." jungle prevailed, and it would appear that we are very close to returningto that period, as the victor in the battle for justice Extradition treaty under fire appears not to be the good citizen, honest and respectful of The center of the fight in 1983-84 was the Colombian­ the law, but the individual who assassinates, robsor degrades U.S. Extradition Treaty for drug traffickers , which then­ his fe llow man .... PresidentBeli sario Betancur pushed through in Lara Bonil­ Each day we are more and more shocked to see how in la's honor after his death. Now, a bill to overturn the treaty Congress bills are presented which are going to strengthen is being considered in the powerful First Commission of the the drug traffickers. That the prescription be legalization of Colombian Senate. Thecommission is presided over by Lib­ the drug trade. Thatthe panacea be Churchdialogue with the eralParty gangster AlbertoSantofimio Botero, who is known drug kingpins. That the money of the drug trade be declared to favor the bill and to have encouraged its proponent, Sen. welcome at the cost of the lives of judges, journalists, help­ Ram6n Elias Nader. Elias Nader is the brother of a former less citizens, ingenuous youth lured by easy money ....If senator and convicted cocainetrafficker who has just finished the situation is not changed, the final word will be given by serving fiveyears in a U.S. penitentiary. the drugtrade , and it will be, "We win!"

54 International EIR November 14, 1986 ph antic mediocrities who affect to be "cultural" in Spain Spain ' today, like the world-famous " writer"Camilo Jose Celat who heads the Latin Union, dedicated to the restoration of the Holy Roman Empire. It was the Albas who puffed up the second-rate Spanish Nietzsche, Ortega y Gasset, whose children are closely as­ Pro-terrorists hound sociated with Ediciones Prisa; they control, through Edi­ ciones Santillana and Editorial Tim6n, a greatchunk of school interior minister book production, both in Spain and Hispanic America; they controlthe Ministry of Culture. Does the House of Alba want by Katherine Kanter terrorism crushed? Read the House newspaper, El Pais, for your answer.

On Oct. 24 , the Spanish interior minister announced some IMF's friends in the justice ministry surprising changes in the structure of his ministry, which The real strongman of the justice ministry is the "left included: the removal of the Directors for State Security and Catholic" Joaquim Ruiz-Ximenez, now ombudsman, who in Police; the creation of a new post, Secretary of State for 1956, helped to oversee the student riots which brought the Security, combined with that of Directorship of State Secu­ liberal International Monetary Fund (IMF) economists into rity-purportedly on the French model; and the nomination Spain, as a concession to the orchestrated "international up­ of a civilian, for the first time, to head the Civil Guard, a roar against Franquist repression." The presentjustice min­ militarybody responsible for borderduties and the fightagainst ister, his protege Joaquim Ledesma, has himself been at the terrorism. center of more than a little controversy. While it is impossible at this point for us to evaluate the In 1983, Ledesma's ministry drafted reforms to the nar­ various appointments in detail, certain striking features lead cotics legislation, which made the penaltiesfor drugtraffick­ one to conclude that the press campaign against Interior Min­ ers caught in Spain the lowest in Western Europe; the law ister Jose Barrionuevo, has achieved its firstsucces s. explicitly stated that consumption of narcotics was not pun­ ishable. Ledesma then stood fully behind a law, voted up by The role ofEl Pais the parliament, which de facto legalized abortion, in Ledes­ One day after the Socialist government of Spain was ma's own words, for "economic and social reasons." inaugurated in October 1982, and announced the appoint­ The Spanish press, over the last months, has beencontin­ ment of Jose Barrionuevo as interior minister, the Madrid uously supplied with "leaks," blowing up isolated incidents daily El Pais demanded his resignation for being "anti-dem­ ocratic." Jose Barrionuevo is a viscount, and as he himself freely admits, was, as a student, associated with various El Pais, Carlist groups; no one today, not even would seri­ The "independence" refferred to, is a ously affirm that the minister supports the pretensions of Carlos-Hugo de Borbon Parma to the Spanish throne, either very specific one: In a word, those overtly or covertly. What disturbs El Pais, is that the minister judges who are protesting want to belongs to a faction of the police and intelligence services free Em members, andjail the which does not joyfully contemplate Spain'sjo ining the War­ saw Pact, nor the proposed dissolution of the national state police who arrest Em members. of Spain into rival satraps of Russia, ruled by Monsefior Setien and Abbot Cassia Just, the clerics who run the Basque Provinces and Caialonia, respectively, and energetically po­ liced by ETA and Terra Lliure, the relevant terroristgrou ps. like that in which a policeman punched an ETA member Why then, the shrill, unceasing campaign by El Pais during interrogation, and was therefore accused of "torture. " against Jose Barrionuevo? El Pais belongs to a firm called The pages of El Pais are littered with photographs of ETA Ediciones Prisa; on the board of directors of Ediciones Prisa members in various stages of undress, proudlypointing to a sits the Duke of Alba. black-and-blue mark, under a screaming headline, "I was The Alba family, of Byzantine origin, is one of the weal­ tortured." The fact that ETA killed, tortured, and mutilated thiest and most powerful houses in Spain, and is convinced over 700 people in the last 10 years, including the wife and that if they can only divide, then will they again rule Spain. children of the military governorof Guipuzcoa, Rafael Gar­ Western Europe would then, of course, have to be under the rido, as recently as Oct. 25, does not overcharge theconsci­ Russian boot. The family has great power among the syco- ence of El Pais's editors, obviously.

EIR November 14, 1986 International 55 tained by the Colombian government, as they flew to an M -19 encampment for "talks. " Easterly wind blows On the same day, Alfonso S. Palomares, intelligence over Madrid media adviser to the Grupo Zeta press empire, was named pres­ ident-director general of the Agencia EFE, the fourth­ largest press agency in the world, with tremendous clout On Oct. 24, the pro-Soviet director of Spanish Television in Hispanic America. Grupo Zeta controls the magazine (TVE), Jose Maria Calvino, was replaced. Immediately, Interviu, which prides itself on being the firstp ornograph­ he was celebrated at a private luncheon prepared in his ic magazine to have appeared after Franco's death , and honor by none other than Justice Minister Joaquim Ledes­ printed an article in July 1986 falsely alleging links be­ ma. Under Calvino's rule, a number of odd events have tween the European Labor Party-a Swedish party asso­ taken place: First, the post of Director of News was given ciated with Lyndon LaRouche-and the murderers of Olof to Jose Luis Balbin, now a star of Radio Moscow's late Palme . night broadcasts; he was succeeded by Enrique Vazquez, Also on Oct. 24, the wife of Alfonso Palomares, Ana­ who spent two weeks in Libya last year. Then Vazquez's Maria Vicente de Tutor, was named civil governor of wife, also a TVE employee, Mrs. Elena Marti, broadcast Madrid; she now has 20% of all security forces in the an extremely sympathetic interview with leaders of the country under her immediate command. Mrs. Vicente de Colombian terrorist group M- 19 on national television. Tutor's firstact was to give an interview toABemagazine , Finally, in October, a Spanish TVE film crew was de- wherein she called for the legalization of prostitution .

Now, the Alba family thinks that they have hit the jack­ "control the police"; that the Council of Judicial Power, should pot: the "El Nani" case. A recidivist called "EI Nani," alias take the matter before the government, and the parliament; Santiago Corelli, suspected of entertaining relations with that an investigative committeeshould be set up to investigate lbero-Americanorganized-crime circuits, disappearedwhile "irregularities," not only in the police, but also in the intelli­ being held incommunicado and is presumed dead. This oc­ gence services of Spain. The judges further said that "an curred in 1983. Some months ago , a group of "progressive" institutional confrontation is arising, in which the indepen­ magistrates, and a number of ad hoc committees like the dence of the jurisdictional organs is at stake, which the Coun­ newly formed Association against Torture and the Council cil of Judicial Power is called upon to save." of Judicial Power, arrived at the "feeling" that the interior The"independence" referred to , is a very specific one: minister, given his jurisdiction, is personally responsible for the cause of the Basque judges, not a few of whom, like Mrs . cases of this nature , and must be forced to resign. Elisabeth Huerta, are barefacedly pro-ETA , and who are The case of these "progressives" went right up to the throwing everything and the kitchen sink at the central gov­ Supreme Court, which on Oct. 30 rejected their arguments, ernment to avoid having jurisdiction over terrorism cases stating, however, that the decision was "without prejudice" taken out of their hands, and put under the National Courts to what conclusions might be drawn from subsequent inves­ in Madrid. In a word, those judges who are protesting want tigations . The head of the Association against Torture had to free ETA members , and jail the police who arrest ETA just declared that, should the court decide for Barrionuevo, members . it would immediately be presented with new facts which In mid-October, the interior minister, in response to the would force the case to be reopened. Huerta case, said in parliament that in order to stop her from forcing Civil Guardsto parade in identificationlineups before A little help from Russian friends ETA members and then reinterrogated by the ETA members, Just before the Supreme Court decision, an important he would go rightup to the Constitutional Courts . Huertaand planning meeting was called in Madrid by about 16 members one of her cronies, Judge Belloch, then mobilized EI Pals of the 33-man Board of Criminal Judges of Madrid, the and the justice ministry networks, and put out the line that a conclusions of which were announced fulsomely by EI Pals. mysterious West German group against separatists, the The meeting coincided with the presence in that city of a CRUN, had threatened them with death. On cue, the justice large number members of the Association of Soviet Jurists, minister rang Judge Belloch and offered him his "solidarity" who were there to participate in a joint conference between against the alleged death threats. the U.S.S.R. and the International Association of Jurists, at The interiorminis try has said that the CRUN simply does which the inaugural address was given by the man we met not exist. Moreover, on Oct. 19, the head of the Fifth Military above, Joaquim Ruiz-Ximenez, ombudsman. Region of Spain, General Hernandez, called upon "all gen­ The conclusions were, that the government is unable to erals of the Army to unite in the fight against ETA."

56 International EIR November 14, 1986 From New Delhi by Susan Maitra

The pot boils in Pakistan ed new parties over differences with Ethnic riots persist amid political fragmentation in the state of Benazir Bhutto. As of now, all four Sind. are acting independently . There is no indication of a coalition in the making. In the recent period, Benazir's Once again, Karachi, the capital the other, the more organized and mil­ PPP , the party with the largest follow­ city of the state of Sind , has been par­ itant gangsters who recruit from the ing in Sind, has begun to lose ground. alyzed by a week-long riot that has ever-growing number of politically Miss Bhutto's high profile following taken 36 lives. Curfew was imposed frustrated, unemployed Sindhi youth . her Aprilretum. from two yearsof self­ and the army called out, but sporadic In September, the Zia government exile in London has petered out, and violence continues in at least three dis­ had made an effort to tackle the grow­ she is facing a split in the party and tricts of the city . ing anarchy in Sind. Prime Minister growing lack of interest in the popu­ The riot started on Oct. 31 when Junejo, a son of Sind who heads the lation. The PPP has enjoyed the sup­ the Pathans, Pushtoon-speaking set­ Sind-based Pagaro Muslim League port of the majority of Sind's land­ tlers from the North-West Frontier (PML) , toured the province with an lords , but is now losing chunks of them Province (NWFP) , clashed with the entourage of federal ministers, mem­ to both the SBPF and NPP. The NPP Urdu-speaking Mohajirs , who mi­ bers of parliament, and law-enforce­ has also attracted the support of Pun­ grated from India after 1947 . The two ment officials. In meetings with local jabi settlers and some of the Urdu­ ethnic groups have long been econom­ politicians, Junejo and company ham­ speaking population in rural Sind. ic and social rivals, with the Mohajirs mered on the deteriorating law-and­ Apart from Sind, the North-West monopolizing the small trade in Ka­ order situation. A number of arrestsof Frontier Province, home of the Pa­ rachi, and the Pathans dominating the individuals suspected of harboring the thans, remains unstable. Millions of transport system. gangsters-including one Chandio, Afghan refugees, a hostile, neighbor­ As thousands of Mohajirs were the largest landlord in Pakistan­ ing Afghanistan, internal factions leaving Karachi on Oct. 31 to attend a pointed to the government's determi­ among the Pathans, and the pressure rally organized by the Mohajir Quam nation. But, according to most re­ on 30,000 NWFP families not to grow Movement, a new Mohajir party , in ports , it will take much more to do the poppies, has kept the province tense Hyderabad, the two groups reportedly job. and jittery . started shooting at each other in Sorab Although the recent riot seems to The instability was given a boost Goth , a predominantly Pathan suburb, have been confined to a strictly ethnic recently with the return of a red-flag­ notorious as a center for drugs and matter, it is worrisome against the bedecked Abdul Wali Khan, Pakh­ arms smuggling. According to police backdrop of political fragmentation toon leader of the pro-SovietNational reports , more than 800 people have and volatility that characterizes Paki­ Awami Party, fromKabul throughthe been arrested since the rioting broke stan generally, and Sind in particular. Khyber Pass to Peshawar, capital of out. For the underground activists­ the NWFP. There, he held a meeting Sind has been in turmoil for some secessionist and gangster alike---' in which he argued thata constitution­ threeyears now, since the 1983 move­ maximization of of chaos is ideal . At al opposition movement in Pakistan ment to dethrone PresidentZia ul-Haq the same time, four major political was impossible. was launched from the state by the leaders-Pir Pagaro of PML, Benazir According to reports, Wali Khan Movement for the Restoration of De­ Bhutto of the Pakistan People's Party brought with him "happy tidings" of a mocracy (MRD), a coalition of II op­ (PPP) , Mumtaz Bhutto of the Sind­ red revolution winding through the position parties. The movement, Baluch-Pakhtoon Front (SBPF), and Khyber, and added pointedly that "no which went out of control, saw Ghulam Mustafa Jatoi of the newly revolution coming throughthat histor­ hundreds die, and spun off numerous formed National People's Party ic pass has ever stopped shortof Som­ political factions, including a seces­ (NPP)-all from Sind, are battling to nath." Somnath is a temple town in sionist group that considerably rekindle a movement that can bring the western Indian state of Gujarat, strengthened the underground. In Sind down the present government. which was devastated by an invading today, two parallel underground forces Mumtaz Bhutto and Ghulam Mus­ Central Asian warlord in the early 11th dominate: one, the secessionist, and tafa Jatoi are former PPPers who start- century.

EUR November 14, 1986 International 57 •

N orthem Flank by William Jones

A classical KGB dis information scheme continuing Soviet submarine incur­ The new EIR Sp ecial Report on the Palme assassination shows sions in Swedish coastal waters. The Soviet disregard for Swedish why Moscow might have wanted to commit such a crime. protests was even creating debate in Swedish military circles as to the fea­ sibility of Swedish entry into NATO, a formerly taboo issue which had been At a series of well-attended press proceed with the investigation. Police sparked by the ELP's campaign for conferences in northern Europe , EIR Chief Hans Holmer, heading the in­ Sweden to join NATO. Palme could presented documentation of events quiry, wanted at all costs to pin Gun­ not ignore such high-level criticism, before and immediately afterthe mur­ narsson with the crime. Svensson at­ except at considerable political risk. der of Prime Minister Olof Palme on tacked Holmer for trying to prejudice The debate in Sweden on the subma­ the night of Feb. 28, published in a witnesses' testimony in order to make rines and the heated climate over the recently issued EIR Sp ecial Report, a case against Gunnarsson. Holmer manifest · Soviet arrogance was tend­ "A Classical KGB Campaign. Who clearly had an axe to grind against the ing to create a shift to a more forceful Killed OlofPalme?" Events surround­ ELP. defense policy. The Soviets respond­ ing the still-unsolved shooting of Mr. Despite Svensson's justifiedcriti­ ed by demanding that Palme put a lid Palme on the streets of Stockholm in­ cism of Holmer's behavior, Holmer, on the submarine debate, or else they clude the disinformation campaign with the backing of the Social Demo­ would makeScandinavia a new "trou­ launched only hours afterthe murder, cratic Party leadership, remained on ble spot." Any shift in Sweden's de­ in which Moscow tried to implicate the case, and Svensson was forced to fense policy could tend to neutralize the Swedish organization associated resign from it. what had becomefor the Soviets a key with presidential candidate Lyndon The systematic coordinationof the element in their nuclear war capabil­ LaRouche, the EuropeanLabor Party, disinformation and harassment against ity-the massive Soviet militarycon­ in the killing. the ELP, involving Soviet channels in centration on the Kola Peninsula. The speed with which the Soviets Scandinavia, partsof the Swedish So­ The same month Olof Palme was responded to the murder was , by their cial Democratic hierarchy, and possi­ killed, the Swedish government made standards, uncharacteristic ..Already bly contaminated sections of the an about-face on technology transfer on March 1, U.S.A.-Canada Institute Swedish police, combined with open to the East bloc. In February, the chief Georgi Arbatov went out attack­ Soviet threats against the Palme gov­ Swedish governmentagreed not to ex­ ing "reactionary circles" whom he had ernmentduring the latter half of 1985 port high-technology goods, pro­ seen demonstrating against Olof and early 1986 give morethan enough duced in the United States and under Palme. Days later Soviet propaganda basis for reorienting the investigation export restrictions there, to the East channels in the West became more ex­ toward possible KGB complicity in bloc. Sweden was formerly an open plicit, quoting alleged Swedish police the murder. But continued Russian window to the Soviets for such West­ sources that the European LaborParty manipulation of the Swedish govern­ ern goods. Now, the Pal me govern­ was under investigation in connection ment would tend to put the brakes on ment, under pressure from the United with the crime. On March 12, police any such investigation. States, was making things difficult for arrested Victor Gunnarsson, alleged The other little-regarded wasfactor Moscow. to be amember of the European Labor increasing Soviet anger at the Palme Did this threatened shift in politi­ Party, on suspicion of the murder. At government for not caving in to Mos­ cal orientation in Sweden merit ex­ this point the Soviet disinformation cow's increasing demands. During the traordinarymeasures on the partof the campaign shifted into high gear. last months of his life, OlofPalme was Soviets to regain control over Scan­ Two months later, Gunnarsson faced with growing criticism of his dinavia, measures including killing the was cleared of suspicion and removed appeasement policies toward the So­ Swedishprime minister?And was Olof from the case by Chief Prosecutor K. viets by leading circles of the Swedish Palme, under these conditions, more G. Svensson, who issued a press re­ military. Even sections of his own useful to them as a martyr than as a lease on May 16 revealing a major party-old-line Social Democrats with politicianbeing forcedto buck the So­ fight among the police over how to a pro-defenseleaning-were upset by viets?

58 International EIR November 14, 1986 • Report from Paris by Jacques Cheminade

France must intervene in America the United States. Britain broke with Syria as a terrorist state; France temporized. Ultimately, the error made by those What are the real issues? analyzing French Mideast policy comes from ignorance of Soviet pow­ er in the Mideast and Europe togeth­ er-without which Hafez Assad could not exist. Only the decisive joining of U. S. , Let's be blunt: We appreciate the the role allotted to France in the West­ European, and Israeli policy can mak­ attitude of Mrs . Thatcher toward Syria ern division of labor: to work "from ing it possible to attack terrorism. more than thatof the French govern­ inside" in the war of succession un­ Without a clear definition of aims, ment, and we would prefer that Eu­ folding in Syria, by trying to under­ means, and roles in this attack, the rest rope spokewith one voice. mine the most pro-Soviet "clans" and is nothing but speculation on various But no one should be fooled on the branches of secret services. (Usually forms of impotence and suicidal "real­ natureof the terrorism which has been well-informed sources say the article politicking. " hittingParis for weeks. At bottom, it in Le Monde on Oct. 30, claiming that France's role is not to launch into never was a question of a "Middle "the governmentobtained a truce with a flight forwardin the Middle East, as East" initiative, but of a Soviet irreg­ the Abdallah clan" of terrorists, could some are pushing for, but to intervene ular-warfare operation. The bomb­ only be disinformation.) That's the into the core of American policy­ ings' main aim was not to obtain some choice which the government has particularly now that U.S. elections specific goal, such as freeing some made, a choice which obviously makes are over-to deal with the evil at its jailed terrorists, but to weaken our po­ mincemeat of the bellicose pledges of source. That means weakeningthe in­ litical powerand , if possible, to make a few weeks ago, and which risks di­ fluence of the State Department and France ungovernable-to the benefit sorienting the French people, if clear the New Yalta partisans, including of Russian strategy. explanations are not given. those near President Reagan, and to Unfortunately, there's a risk this However, to make a big deal out staunchly back those who fight for a aim could be partly achieved, if the of this setback, however inglorious, "peace through strength" policy of a general confusion of positions taken and accuse the government of all evils, Western alliance reinforced and re­ by all sides continues. We would like is even more to boost the "destabili­ newed between equal partners. to contribute to turning things around zation scenario" which only benefits Counterintelligence chief Pan­ by restating the grounds upon which Russian strategy. The mistake would draud's trip to Washington was a first decisive choices will be made. be keeping our noses stuck into Mid­ step in this direction, and the meeting The government, before Premier east policy, losing sight of the overall of the Westernintelligence services at Chirac's trip to the United States for situation. Saint-Cyr-au-Mont-d'Or near Lyon the U.N. GeneralAssemb ly, was pre­ Not accidentally, the Socialist was a second. Others, and bolderones, paring strong actions. But the Ameri­ press was the most vehement in de­ will have to be taken soon. Moreover, cansChirac met with, notably Secre­ nouncing the French position on Syr­ because of its effecton the Near East . taryof StateShultz, showered him with ia, joined by the parliamentary group and the United States, we must give "go-slow" advice, and promised not a around Trilateral Commission mem­ concrete backing, including funding, whit of support in case France took ber Raymond Barre-in short, to Shimon Peres's "Marshall Plan" for steps againste th terrorists. Has any­ France's biggest promoters of a deal peace. one noticed that so farWashington has with the Kremlin. In the U. S., as in The Mideast problem will find so­ not acted (apparently) any more than France, some odd Atlanticists scream lution in a new context thus defined, Paris? about "Euro-cowards" and forget that which will take on its own dynamic. What then could the French gov­ the source of European weakness is It is by the courage the Chirac govern­ ernment do? Either prove our charac­ theU.S. State Department. Denounc­ ment shows in intervening in the U.S . ter and independence-the way we ing this weakness without naming the that we must judge it, and not by short­ would have preferred, but which would source, they merely reinforce the iso­ term negotiations in the Middle East have required means which it was lationist trend in America, and pave that will soon be relegated by history thought France did not have; or play the way for "de-coupling" Europe from to their real importance.

EIR November 14, 1986 International 59 Andean Report by Gretchen Small

Of bankers, debt, and drugs suing millions, so that Bancoper could Lima's bankers are not the only ones sweating over the pay its foreign creditors ! Now, a new angle has emerged . upcoming trial of banker Luis Bertello. Lima daily El Nacional reported on Oct. 21 , that in the months before leaving-and while receiving gov­ ernmentaid- Bertello had busily sold Will the investigation of Luis Ber­ Peru in April 1983, to findnew homes some 200 of his properties to Reynal­ tello's financial misdoings lead back variously in Miami, London, Vienna, do Rodriguez Lopez, the drug kingpin to Rockefeller's man in Peru, Manuel and Costa Rica. who owned Villa Coca! Ulloa? And will that trail lead back to Bertello's bank was not the first Does the government have the Peru'screditor banks in New York and bank to go under during the Belaunde "hard goods" on the international as­ Boston? administration. In 1981, the Banco de pects of Don Lucho's schemings, or These are the questions now buzz­ la Industria de la Construccion col­ his narcotics links? EIR does not know; ing about Lima, after "Don Lucho" lapsed in the wake of similar charges but some people in Peru are scurrying Bertello was extradited back to Peru of financial mismanagement. Its chief to keep more of this story from coming from Costa Rica Oct. 22, to finally executive, Luis LeOn Rupp, also chose to light--orto court. face charges of embezzlement and to resolve his problems by fleeing. Costa Rica's prosecutor, Roberto fraud against stockholders and the La Republica reportedOct . 26 that Steiner, advised Peruvian authorities Banco de la Naci6n, stemming from Rupp has initiated legal action to clear in early October that Bertello would the 1983 collapse of his Banco Com­ the way for his returnearly next year. arrive Oct. 9. By a combination of ercial de Peru (Bancoper) . Whether he will actually do so, will legal maneuvers in both Peru and Cos­ The case could set a crucial prec­ depend on the outcome of the Bertello ta Rica, Bertello attempted to stall his edent for the continent, providing an case. extradition , and nullify the charges. opportunity to prove-in court -how The financial maneuveringsof both That worked , until Oct. 22. Now, the foreign debt scams of the 1970s banks were similar. Rupp and Bertello Lima's financial establishment has and 1980s worked. Trying bankers for are accused of issuing bad loans to launched a campaign to free Don Lu­ the crime of financial misdealings on their own companies, and thus threat­ cho, using Caretas and Oiga maga­ the debt, if successful in one country , ening the solvency of the banks, for zines as their mouthpieces . This man could become contagious to other their personal gain. is no criminal, but merely a bad busi­ countries. The maneuvers had a further wrin­ nessman , who risked all for his coun­ An even dirtier side of internation­ kle . The governmentbailed the banks try , they argue . And they threaten that al finance may also emerge from this out: Ulloa's economic team ordered unless he is freed, that "other busi­ case: theli nks between the foreign debt that state funds cover the bank's bad nessmen" may stop "risking" their scam and the narcotics trade. And that debts. Ulloa called it "protecting the capital , too . has made Don Lucho's Wall Street depositors," but the money was sent The government, however, has friends very nervous, indeed. to the banks' foreign creditors . stuck to its guns. Vice Interior Minis­ Before its collapse, Bancoper was Bancoper was a great scam. The ter Augustin Mantilla personallywent Peru's third-largest private commer­ bank issued 85% of its loans to its own to the airport to meet the plane from cial bank, and Don Lucho was the stockholders, mostly Bertello's in­ Costa Rica, to insure no last-minute president of the national bankers as­ dustrial empire. Lacking sufficient "escape" occurred. "This is an impor­ sociation. One London newsletter capital base for this, Bancoper took tant step for the country," he told re­ praised him at the time as "a blue-eyed out dollar loans from foreign banks, porters . "With this, we demonstrate to establishment boy, " and "intimate and then reloaned them to its own the public that we are ensuring jus­ friend" of foreign bankers' favorite companies. tice." Peruvian, Ulloa. Long before Bancoper went un­ As Garcia told reporters Oct. 24, Tipped off by friends that a Lima der, its financialproblems were public "No one can avoid the law, for all the judge had issued arrestorders against knowledge in Lima. But when Ban­ money or political power they have. him and 17 other Bancoper executives coper was unable to meet its dollar The law must be equal for all Peruvi­ or directors , Bertello and crew fled obligations, the governmentbegan is- ans . "

60 International EIR November 14, 1986 Report from Rio by Silvia Palacios

AIDS crisis in Brazil er diseases, such as leukemia, the Brazilian authorities are hiding the severity of the situation, health ministry has had to admit that AIDS cases have broken out of the which is assuming ep idemic proportions. ''traditional high-risk" category. Thus, for example, in Sao Paulo-the state of the highest incidence of AIDS-of the 552 registeredcases , 23 are con­ sidered part of "non-traditional" groups and 103 have beencatalogued as "still under investigation." In April of this year, the Eighth T he Brazilian health ministry, un­ tics corresponding to October 1986, National Conferenceon Health met to der the excuse of "avoiding panic" report only 841 cases. Ministry offi­ take a close look at this new disease. within the population, is continuing to cials themselves, however, are pri­ While state and federal medical au­ follow a policy of covering up of the vately confirming that the number of thorities participated in the confer­ accelerating growth rates that AIDS is cases has surpassed 1,000. ence, the final resolutionsreflected the displaying in this country. In so doing, No one can pinpointthe true state minority influenceof leaders of the so­ they are following the genocidal rec­ of affairs , but the official figures are called gay communities who had been ommendations of organizations such being disproven daily. For example, invitedto participate. Noteworthy was as the World Health Organization Dr. Ricardo Veronesi, expertin infec­ the group from Bahia, which mobi­ (WHO) and the Centers for Disease tious diseases from the University of lized aggressively in defense of the Control (CDC) in Atlanta, Georgia. Sao Paulo, reported on Oct. 27 that civil rights of homosexuals and sought The real panic the Brazilian health 3,000 of the 7,000 prisoners in that to "decriminalize"the moral ethic that authorities apparently want to avoid is state were infected with AIDS. considers homosexuality a perver­ that of the powerful "Gay Lobby ," "Promiscuity in Brazilian jails," he sion. which infests every state in Brazil. said, "is nothing new. In the state pen­ From that conference emerged a But there is another, even more iteniary, new inmates are humiliated proposal for an AIDS control pro­ important explanation for the criminal and forced to serve the oldest pris­ gram, which was based on a series of negligence of the health ministry, oners, who take sexual advaritage of weak-kneed "preventive" measures namely, "the high cost of treatment them even if they are not homosexu­ directed only at the traditional risk and the insufficiency of beds in the als. " groups, such as hemophiliacs. How­ public health network, and of invest­ Brazil has the second-highest ever, a stipulation was made placing ment in research," as the officials number of AIDS victims among pris­ AIDS on the list of diseases for which themselves will admit. Desperate oners in the world. compulsory notificationin every state health workers-faced with a lack of No sane person would dare to ig­ of Brazil is required. It was also rec­ funds and the increase in AIDS, in a nore the miserable health conditions ognized that, because of its epide­ situation where diseases such as den­ under which large percentages of the miological characteristics, AIDS "can gue and malaria are considered en­ Brazilian population live, where en­ becomeone of the most serious public demic-see cover-up as their only op­ tire regions are undergoing a process . health problemsof the century. " tion. of "Africanization" that threatens to The homosexual groups are stay­ In this situation, which could be cause the death of millions. Sub-hu­ ing on the offensive to combat what described as a threat to national secu­ man living standards in large parts of they call the "stigmatization of gays" rity, the continuation of an economic Brazil may be one explanation for the caused by the appearance of AIDS. policy premised on paying usurious AIDS explosion there; another is the They are currently mobilizing for interest rates to service the foreign prevalent Gnosticworship of "the body "legislation that prevents firing with­ debt, is sheer lunacy. beautiful," which has given Brazil the out just cause of AIDS-positive car­ While in 1985 the most reliable unenviable fame of having the largest riers." One case, that of an airlines estimates were that 1,000 cases of homosexual community in the world. employee with AIDS forced to resign AIDS would be confirmed by the end But even if the official figures lie from his job, has been taken up as a of 1986, recent health ministry statis- and attribute deaths from AIDS to oth- cause celebre by Brazil's gay lobby.

EIR November 14, 1986 International 61 International Intelligence

characterization. In an editorial comment, , waiti-held terrorist has just been released. Sweden in official the daily Bildzeitung wrote: "The Soviets Henry Kissinger and Zbigniew Brzezin­ protest to Moscow are always ready to accuse the Federal Re­ ski were the architects of the U.S.-Iranian public or at least certain forces here of fas­ deal , according to intelligence sources. The cism, revanchism and war-mongering." administration has been sold the lie that par­ Swedish Prime Minister Ingvar Carlsson Badische Neueste Nachrichten revived post­ liamentary speaker Ali Akbar Hashemi­ called in Soviet Ambassador Boris Pankin war chairman of the German Social Demo­ Rafsanjani is a moderate, and that it would to deliver an official protest over eavesdrop­ crats Kurt Schumacher's 1945 characteri­ therefore be in U. S. interests for him to suc­ ping Oct. 3l. zation ofthe Soviets as "red-colored Nazis," ceed Khomeini, rather than Khomeini's The Swedish embassy in Moscow has accusing Moscow of working with today's designated successor, Montazeri , who di­ been tapped by Pankin's KGB for 15 years; opposition Social Democrats. rects Iran's international revolutionary or­ this was discovered during the present re­ Herbert Kremp, editor-in-chief of Die ganizations. construction of the embassy. The construc­ Welt, wrote a backgrounder on "Who was According to sources, all anti-terrorist tion workers reported "abnormal equip­ Joseph Goebbels?" He described Goeb­ forces in Europe will now have trouble ar­ ment" in the embassy. bels's past as a memberof Gregor Strasser's guing for a hard line against Syria, given the Bo Hejnebeck,an officialat the Swedish pre-1933 "national-bolshevist" current of the U. S. administration's own Carter-style deal foreign ministry, said that the protest was Nazi party. "The left-wing National Social­ with an allied terrorist state. Additionally, it "serious" but not yet "sharp," and that the ists wanted the alliance with Moscow is reported that Syrian President Hafez As­ discovery will have a negative influence on against, as they said, the militarism of sad will soon release U. S. hostages under the Baltic Sea border negotiations between France, the imperialism of England, and Syrian control , to attempt to show that, like the U.S.S.R. and Sweden. So far, the against the capital on Wall Street. Were they Rafsanjani, he is really "moderate." U. S.S.R. has not responded. still around today, to talk the same way , they would be certain to receive Soviet ap­ plause." Helmut Kohl was right: Soviet spetsnaz Gorbachov is a 'Goebbels' strike in Britain? Administration did West German Chancellor Helmut Kohl, in "Peace movement" militants carried out as­ aninterview withNewsweek magazine pub­ send arms to Iran saults against NATO nuclear weaponsfac il­ lished Oct. 27 , compared Soviet party sec­ ities in Great Britain and West Germanyon retary Mikhail Gorbachov to Nazi Propa­ Despite denials by the Reagan administra­ Nov. 5. Soviet "special fOfces" may well be ganda Minister Joseph Goebbels-only to tion, former National Security Adviser Rob­ involved. withdraw the remark a week later, under the ertMcFarlane and a four-man CIA-NSA ne­ At Greenham Common, Great Britain, pressure of furious attacks from Moscow, gotiating team traveled to Teheran in early where U,S. cruise missiles are stationed, including the cancellation of a scheduled September, where they concluded a strateg­ more than 100masked extremists assaulted visit to Moscow by the Germanresearch and ic deal with Iran. This deal , according to all a convoy of 20 military vehicles, beat up the technology minister. available information, had the personal sup­ personnel, cut the brakes, and smeared the Kohl was quoted by Newsweek: "I am port of PresidentReagan. windows with white paine. not a foo l: I don't consider [Gorbachov] to How long it will last, is another ques­ The ambush of the cruise missile convoy be aliberal. He is a modemcommunist lead­ tion. According to a numberof intelligence near Greenham Common was claimed by er who understands public relations. Goeb­ sources, the deal provides for Iran releasing the "Cruise Watch"/Committee for Nuclear bels, who was one of those responsible for the remaining hostages under its control , in Disarmament. the crimes of the Hitler era, was an expertin exchange for the United States shipping mil­ At Ansbach, Germany, about 50 radi­ public relations, too." Newsweek' s inter­ itary equipment to Iran. The U.S. govern­ cals stonned aU. S. Army base and came as viewers later reported that the phrase "who ment has already shipped communication close as 20meters to the launcher of a Persh­ was one of those responsiblefor the crimes equipment, and possibly F-4 and F- 15 jet­ ing II missile, with the obvious intent to of the Hitler era," was added to the text of fighter spare parts, to Teheran. Other items damage the missile. Military police drove the interview, on instructions from Kohl's of negotiation include the release of $1 bil­ them away and arrested six of the intruders. official spokesman, Friedheim Ost. lion in Iranian assets frozenin British banks, The incident was characterized as "very se­ Despite Kohl's equivocation, media in and the release of six imprisoned Iranian rious" by U.S. military spokesmen. Germany have pointed out the aptness of his terrorists in Kuwait. Reportedly one Ku- .B ritish Armed Forces Minister John

62 International EIR November 14, 1986 Briefly

• THE AIDS THREAT to Russia Stanley, in response to a question in the prohibits the ownership, use, stationing, or will be detailed early next year in an Journal of the Royal So­ House of Commons on the GreenhamCom­ testing of nuclearweapons and the dumping article in the mon incident, pointed out the "spetsnaz of nuclear waste in the region. cietyof Medicine, co-authored by Dr. threat"to Britain, the London Daily Express The proposal has long been pushed by John Seale and Russian exile biolo­ reported . "In very different international the Soviet Union, as a means of driving the gist Dr. Zhores Medvedev. Soviet of­ circumstances than those we had today, we United States out of the Pacific theater. ficials attempted to buy 5 million would have to take a very different attitude "We think it is important, at this time AiDS-testing kits from Finland for towards the protection of nuclear weapons," when the South Pacific is asking Washing­ the Soviet army in September. he said. According to the Exp ress, "Mr. ton, London, Peking, Moscow, and Paris to MIKHAIL GORBACHOV Stanley's words were partly aimed at the formally commit themselves to the proto­ • Soviet special forces, Spetsnaz. Intelligence cols that we take the step of formally com­ plans a big 1987 tour of Thero-Amer­ experts fear Spetsnaz agents could infiltrate mitting ourselves to the treaty," Lange said. ica. His top priority is to visit Mexi­ groups such as Cruise Watch ." Security He added, "It is the first international arms co, and the itinerary under consider­ chiefs in Britain have launched a "top-level control agreement concluded since the ilI­ ation includes Brazil, Argentina, inquiry" into the incident. fated SALT II in 1979. It is proof that prog­ Peru, Cuba, and Nicaragua. ress in arms control is possible if countries ZBIGNIEW BRZEZINSKI have the determination and political will to • says Moscow: 'Syria make it happen ." the time is right for "European reu­ nification"-but alas, Europe isn't not alone' Soviet Deputy Premier Mikhail Kapitsa, is while visiting New Zealand in August, said ready for it. In a full-page inteview in that the Soviet Union would sign the proto­ the Nov. 1-2 edition of the Danish On Nov. 4, for the first time since Britain cols after regional countries ratified the pact. paper Information, Brzezinski says: broke diplomatic relations with terrorist ''The time is right for putting Euro­ Syria,the Soviet party daily Pravda warned: pean reunification on the agen­ "Imperialist circles, which are threatening da .... Even the communists in Syria with violence, have embarked on a Buthelezi in Bonn Eastern Europe want to get free from dangerous road .... But they should not denounces sancnons the Soviet domination. They want to forget: Syria is not alone. It has the support come back to Europe.The Soviet em­ of its friends and the solidarity of the broad pire is the only one in history, where Mangosuthu Buthelezi, the South African international public on its side." the suppressed people view the dom­ black moderate leader and chief minister of Pravda notes with pleasure that British inating culture as inferior." KwazululNatal, said in a speech at a human Foreign Minister Geoffrey Howe has not rights conference in Bonn Nov. 3 that South POLITBURO succeeded inbuilding a "united front" in the • mouthpiece Alek­ European Community to isolate and punish Africa is ripefor a democratic takeover, but sandr Bovin, in an Oct. 31 speech there is a danger that economic sanctions Syria. before a conferenceof the West Ber­ will tip the scales in favor of violence. The British break with Damascus fol­ lin communist party (SEW), de­ He also said that sanctions would not lowed the gathering of massive evidence of clared: ''The United States appears Syriancontrol of terrorists in connection with force President Botha into capitulation . "The incapable of reaching arms-control the trial of terrorist Nezir Hindawi in Lon­ blacks· will suffer the most," he reiterated. agreements as long as President Rea­ am don. "I cannot support sanctions. I a leader gan is in power." with a constituency and I answer to millions of peoplewho need food , who need to clothe • PRINCE CHARLES should re­ New Zealandto sign their children." sign his claim to theEnglish throne, He added thateconomic sanctions would West Germany's Bild am Sonntag nuclear-fr ee zone pact destroy the economy of South Africa, and editorialized Nov . 2. "Would it not with it, the economies of other southernAf­ be better, that the peculiar Charles New Zealand will ratify the South Pacific rican nations which had economic links with resign from his claimancyto the Brit­ Nuclear-FreeZone Treaty, which is "a small South Africa. ish crown?" Charleshas "surrounded but a veryimportant step in the arms-control In a speech to open the conference, himself with Gurus and faith-heal­ process," Prime Minister David Lange an­ Chancellor Helmut Kohl reiterated his own ers," talks to his plants, and "has be­ nounced on Nov. 5. The treaty , adopted at opposition to economic sanctions against come a vegetarian." the South Pacific Forum in August 1985, South Africa.

EIR November 14, 1986 International 63 ITillNational

Don Regan defeated the Repuhlicans : LaRouche

by Nicholas F. Benton

The Reagan administration appears unrepentant in its insist­ her own. She is coming to See Reagan at Camp David the ence that its failed economic policy did not cause the loss of weekend of Nov. 15-16, perhaps with some long-overdue Republican control of the Senate on Nov. 4. White House rethinking of economic policy. adviser Mitch Daniels explained away the devastating set­ "Thirty-one of the 50 states are in depression conditions back for PresidentReagan in factors totally unrelated to the analogous to those of the 1930s," LaRouche contended in his economy, and the White House, the same day the news of a Nov. 5 statement. "Out of disgust and anger at the President's the record-setting 123rd bank failure of the year was an­ economic policies, many whohad voted for the President's nounced Nov. 7, bragged of new employment figures that ticket in 1984 either stayed away from the polls, or voted proved, they claimed, "the 48-month economic recovery was against Republican candidates in the Nov. 4 election. Prelim­ continuing. " i�ary results suggest that a�ut 10% to 20% of the voters Control of the Senate shifted in the election from a 53-47 swung against the Republicans on the issue of the economy. Republican majority to a 55-45 Democratic majority. This It would be fair to say that Wqite House Chief of Staff Donald means that when the new Senate is sworn in, in January , Regan cost the Republicans dontrol of the Senate." ' Democrats will control every committee and subcommittee Statistics bearout LaRouche's point. It is true that Pres­ of the Senate , as they currently do in the House. ident Reagan's exhausting 2 1 ,OOO-mile last-ditch campaign swing closed the gap in many Senate races, bringing six of Reaganomics takes a dive themwithin less than 2% difference, even though the Repub­ Despite White House self-delusions, Democratic presi­ licans lost all six. It is true that Reagan tried to feature the dential candidate Lyndon LaRouche remarked in a post-elec­ importance of the Strategic Defense Initiative (SOl) in each I ' tion statement that it was the economic collapse engendered of his speeches. , by "Reaganomics" which turned the U.S. Senate around But Daniels, the White House's expert on electoral, cam­ froma Republican majority to a Democratic majority on Nov. paigns, revealed the President's Achilles Heel in a 'press 4. briefing at the White House the day after the election. In Either President Reagan turnshis failed economics of the response to EIR's question, he asserted that the SOl was so-called free market around, or he will be worse than a lame "second place," he said, "to the primary difference that' in duck during his final two years . The President's statement of our view separates Democratic from Republican voters , which bravado following the smashing defeat, "You ain't seen noth­ is economic policy." Because that's how they saw it, that's ing yet," in his determination to clash with the Democratic­ why they lost, despite whatever else they had going for them controlledCong ress, won't mean a thing unless his economic on defense, SDI, anti-drug, and other issues. policy changes. The message of the election hasn't been lost on British What a Democratic Senate means Prime Minister Margaret Thatcher, who faces elections of In most cases, a Democratic Senate spells disaster for

64 National ElK November 14, 1986 U.S. interests, and the future of the Western Alliance. For "The national leadership of the Democratic Party is no example, Sen. Ted Kennedy (D-Mass.) will probably be­ bit better than the Republicans on economic issues," La­ come the chairman of the powerful Senate Judiciary Com­ Rouche observed. "During the election campaign period, mittee, where he will be in a position to launch new legisla­ virtually none of the Democratic candidates had anything tion and investigations aimed at rooting out what is left of useful to say about economic policies, except to blame the patriotic and technologically oriented leaders and trends in Reagan administration for all of the suffering caused .... the United States. The Democrats did not earn their victories in the congres­ Arch-Eastern Liberal Establishment "blue blood" Sen. sional races; the President's blundering on economic policy Claiborne Pell (D-R.I.) will become chairman of the Senate won their races for them." Foreign Relations Committee. The power of this post was The Republicans, including President Reagan, beat demonstrated this year when Sen. Richard Lugar (R-Ind.) themselves on Nov. 4 by identifying with the policies of the used it to betray President Reagan and lead a Senate override Wall Street faction exemplified by Don Regan in the White of his veto of punitive economic sanctions against South House. And their failed policy was punctuated by the press Africa, a betrayal that can be expectedto pale in comparison reports Nov. 7 that four more U.S banks failed the week of with what Pell will do. the election, bringing the 1986 total to 123, the highest in the Most dangerous, perhaps, will be the elevation of Sen. post-Depression period and compared to a yearly total of only Sam Nunn (D-Ga.) to chair the Senate Armed Services Com­ 10 in 1980, when Reagan was first elected. mittee. To Europe, news of this development immediately But the loss by the Republicans was not a mandate for the stirs up fear for the future of the NATO alliance. Nunn is the Democrats, even though their new control of the Senate will author of the 1984 amendment, drafted along lines dictated give them a new ability to performdevastating mischief start­ by Henry Kissinger, to withdraw U.S. troops from Europe ing in January. Among the most relevant facts of the election and destroy the alliance. With a Republican majority in the was that it was the lowest turnout in a federal election since Senate that year, Nunn's amendment failed by only three World War II: 37%. Most people were just plain fed up. votes. With the new Democratic majority, and Nunn in COITI­ Nearly two-thirds of the registered voters just stayed home. mand of the Armed Services Committee, a drive for further Most voters boycotted the very "Reagan revolution" that cuts in the U.S. defense budget will propel a "decoupling" they caused to sweep, they thought, an anti-Eastern Liberal mood in the new Congress. Establishmen� candidate into the White House in 1980, re­ The Strategic Defense Initiative of President Reagan is turninghim with a record landslide in 1984. Reagan, despite also jeopardized. Sen. Robert Byrd (D-W.Va.), who will his continuing personal popularity, and commitment to SDI replace Sen. Bob Dole (R-Kans.) as the Senate Majority and a War on Drugs, has failed his own constituency by Leader, said the night of the election, "We will have a lean, accomodating to the Wall Street faction they elected him to mean, and cost-effective defense, and will stress convention­ purge. Don Regan's policies have brought the American al forces and readiness over strategic defense." people nothing but growing trade deficits, collapsing farms The Democratic-controlled House wanted to virtually kill and basic industries, chiseling on health care and Social Se­ the SDI in 1986 by cutting its budget back to $3.1 billion, curity, and lying employment figures that put a minimum­ and only compromises with the Republican-controlled Sen­ wage job at McDonalds in the same category as a full-time ate forced the figure back up to $3.8 billion. Now, the votes factoryjo b at union wages. are no longer there in the Senate to prevent the SDI from being decimated. Also, it was only Senate insistence this Role of AIDS issue year that prevented the House-authored restraints on the Pres­ As a symptom of this economic policy, LaRouche noted, ident's defense policy-such as bans on nuclear and anti­ "The one issue which really sunk the Republicans this time satellite testing and chemical weapons development, and around was the AIDS issue." LaRouche and his supporters forced compliance with the never ratified SALT II treaty­ created an internationalexplosion by placing Proposition 64, from passing. This will no longer be the case. a public referendum demanding appropriate health care mea­ sures to stem the spread of the species-threatening AIDS Tired throwbacks virus, on the ballot in California. The state leaderships of Yet as LaRouche pointed out in his statement, the voters both the Democratic and Republican parties, as well as vir­ didn't vote for the Democrats, they voted against the depres­ tually all of the "Hollywood mafia" stable of movie stars and sion. The Democrats who won hardly represent a breath of the state public health mafiacame out against the proposition, fresh air or any new national trend. They are a lot of tired openly identifying it with LaRouche to the point the initiative throw-backs to the failed McGovern and Carter years-the became virtually a referendum on LaRouche, himself. The likes of a 69-year-old Terry Sanford in North Carolina, an measure was defeated, but still, 2 million Californiansvoted even older Alan Cranston in California, and a Brock Adams for it. in Washington. "Had the President supported actions such as Proposition

EIR November 14, 1986 National 65 64 against the Democratic opposition, the Proposition would 64and the solid 15 to 30% vote for candidates identified with have carried the state by about 60% and a number of Repub­ LaRouche throughout the country on Nov. 4, the emergence lican losers would have won their elections," LaRouche said. of the "LaRouche factor" has been the single most significant As it turned out, however, "The administration's expressed development of the 1986 election year. philosophy, that saving lives of AIDS victims is 'cost prohib­ What is the effect of all of this on the 1988 elections and itive,' is the key to the administration's brutal indifference to what happens between now and then? LaRouche said, "Un­ the miserywhich administration economic policies are caus­ less the President effects very profound changes in his eco­ ing among farmers, industrial operatives, and entire com­ nomic policies, 1988 could mean the biggest Democratic munities." Party sweepof the elections since FranklinRooseve lt's days. " LaRouche had barely time to release his post-election If the President does change his policies, and Vice-Pres­ statement, however, than his prediction that "Proposition64 ident George Bush follows such changes, then Bush will be is not dead" began to come true. He warnedthat soon "many a formidable contender in 1988. But if this does not happen, who opposed the proposition will be screaming for exactly the failure of the Presidentto change "will sink Bush's chances what the populationwould have mandated," because of "the and ruin the chances of other RepUblicans as well." piling up of death-rates, combined with the rapid spread of LaRouche said that "a likely Democratic candidate" would ,,, the infection among so-called 'non-high-risk groups. Within "have to be a figure who could carry a large chunk of the three days of the election, California was hit by two devas­ 1980 and 1984 Reagan vote , especially the Democratic vot­ tating announcements: one from the head of the Los Angeles ers who supported Reagan." These, he said, "would have to County Medical Association, demanding tough public health be anti-Carter-Mondale Democrats and independents, who measures to stem the AIDS epidemic along lines reminiscent agree with Reagan and LaRouche on defense, but have an of Proposition64; the other from the French Pasteur Institute, aversion to both Carter and Mondale." Polls taken since the whose spokesman at a San Francisco conference reported the election confirm this view, indicating that "someone else" is discovery of a new strand of AIDS virus especially lethal to by far the strongest contender when pitted against Hart, children and other "non-high-risk" groups. Cuomo, Iacocca, Biden, and other "Establishment" Demo­ LaRouche predicted that as a result of such developments crats. over the next 12 months, "I shall become a national folk-hero "Unless Reagan," LaRouche stressed, "reverses his because of my support for this Proposition, and President administration's economic policy very soon, Reagan will be Reagan will wish he had joined with me on the issue." viewed increasinglyas having made a bad deal with the New Among the factors which LaRouche identifiedas respon­ York bankers. White House Chief of Staff Don Regan, and sible for the defeat of Proposition 64 was "the worst mud­ Henry Kissinger, will be leading elements ....Under these slinging in the entire campaign . . . the many millions spent conditions, the most credible Democratic candidates will be in campaigns against me and against my support for Propo­ those identifiedas anti-establishment." sition 64."He said the generally "wide use of brutal personal In the meantime, LaRouche said, Reagan will become a attacks as the campaign tactics of many leading candidates" "lame duck" President for the next two years. in the election mainly sprung fromthe fact that "very few of On the other hand, "assuming Reagan chooses to dump the candidates had anything important to say, but only knew his present monetary policy, the President doeshave power­ that their polls were picking up a very strong 'anti' mood ful options," LaRouche added, despite the make-up of the among the voters." looth Congress that will be seated in January. He said that "apparently the pollsters failed to ask the Even with a Republican majority in the Senate in recent obvious question: 'anti' what?" The answer was, "very clear­ years, LaRouche pointed out, Reagan's defense policy, "the ly, 'anti' the way the Administration's economic policy is best of the last five Presidents," has been "whittled down in leading the nation deeper and deeper into depression-like the budgetary process" to the point that "the last remnant of conditions." Therefore, he said, the public voted negatively, the positive side of Reagan's policies will be virtually wiped and "the Democrats won throughno fault of their own." But, out of existence. " he added, the mud-slinging against him and Proposition 64 However, LaRouche added, "even with a whopping was a different matter. Democratic majority in both houses, Reagan can whip the In this case, he pointed out, "the federal government, Congress into line, on condition that the President uses the together with the two major parties, from the top down, were accelerating international financial and economic crisis as in an all-out mobilization to defeat the Proposition." This leverage to push through a genuine economic recovery pro­ factor, combined with the generalized anger against Rea­ gram. " This requires, he said, recognition that the President' s gan's economic policy, hurt the proposition's chances of influence collapsed in this election "because the voters who passing by causing many former Reagan supporters to stay turned out for the President in the past voted against White home from the polls, he said. House Chief of Staff Don Regan, mostly by not bothering to Nonetheless, between the 2 million votes for Proposition go to the pollsat all."

66 National EIR November 14, 1986 84-year-old Elizabeth Rose fights fo r rights of America's elderly

International human-rights fighter Elizabeth Rose was re­ The meeting with the Italian political leader underscores ceived Nov. 5 by Sen. Vincenzo Carollo, Christian Demo­ how Mrs. Elizabeth Rose has made herself a rallying point cratic vice-president of the Italian Senate. After listening to for the rights of political dissidents, and the elderly, around what Mrs . Rose told him about her own persecution in the the world. United States as a result of her financial contributions to American presidential candidate Lyndon H. LaRouche, Jr. , An outrageous injustice Senator Carollo stated: "The world would be much better if She has been the victim of one of the most outrageous more people were to put their personal fortunes into very instances of injustice in the history of American courts, ab­ moral causes, as Mrs. Rose did." rogating the rule of law in favor of the whimsical political

LaRouche, have sought to have me declared incQmpetent, so that they can then sue the LaRouche organizations and Mrs. Rose's statement: get the money back. A veritable reign of terror exists, now, for the elderly, 'a reign of terror' in the United States. Many of my friends have told me that they are afraid to contribute to Mr. LaRouche's ef­ The fo llowing is the text of Mrs. Elizabeth Rose's state­ forts, or related political ideas, for fear that their children ment to an Oct. 29 press conference in Rome, announcing will move to have them declared incompetent, just like fo rmation of an International Commission to Investigate my children are trying to do to me. People of my genera­ Soviet-StyleHuman Rights Violations in the United States. tion remember what the United States was once like, how it once was truly a temple of liberty and beacon of hope I am happy to be in Rome today, to help launch the Inter­ for the world. natipnar Commission on Human Rights that will investi­ Younger generations, having gone to schools that don't gate Soviet-style injustices that are rampant in the United teach history, and having been inordinately influencedby States. You have no idea how far the justic� system has the TV and mass media, have largely lost sight of what collapsed in the United States already. America once was, and what it once stood for. Motivated I am 84 years old. This past year, I made several large by greed, and pursuit of earthly pleasures, these genera­ donations to organizations affiliated with Lyndon La­ tions are preying upon the elderly of the United States. Rouche. These organizations are doing vital work to help They are being encouraged to do so by corrupt political stop the spread of AIDS , to help stop the drug plague, and forces in the United States who, like their friends, and to promote the rapid development of the SOl and the associates in the Dope Lobby, and the Soviet Union, hate colonization of space. I believe that if we don't make Mr. LaRouche, and want to see him dead. significantprogre ss in these areas, then the United States I have come to Europe today in much the same spirit will cease to exist as a free nation. that Europeans traveledto America centuries ago, in search Because I gave this money to associates of Lyndon of liberty, justice, and freedom of thought. I fear that LaRouche, I have been subjected to the kind of persecu­ unless concernedcitizens from the countriesof Europe act tion that Ithought existed only in the Soviet Union. My on these issues immediately, then the United States and children, working with political forces that hate Lyndon the Western Alliance will be doomed to collapse.

EIR November 14, 1986 National 67 opinions of a so-called judge. cus Distributors, Inc., and the Prevent AIDS Now Initiative "I am happy to be in Rome today, to help launch the Committee. International Commission on Human Rights that will inves­ The judge, named Sokolove, had already indicated a tigate Soviet-style injustices that are rampant in the United prejudice in favor of the daughters' position, ignoring Mrs. States," she earlier told an Oct. 29 pressconference in Rome, Rose's own testimony concerning her political motivations Italy. "You have no idea how far the justice system has for the donations, and ignoring the testimony of a highly regarded New York psychiatrist. He testifiedthat Mrs. Rose was completely sane. In seeking a ruling from the Court which would have declared their mother incompetent, the "No one is interested injinding out daughters would have obtained power over their mother's why I gave the money. The law is considerable personal financesand eventually her person. not being carried out here as Mrs . Rose in earlier hearings had demonstrated clearly her lucidness and sanity when she testifiedon the importance anyone but a lawyer could see .... of the President's Strategic Defense Initiative (SOl), of which This was a chancejor an old lady LaRouche is broadly deemed the "intellectual author" and leading symbol; and the campaign for public health measures to do something excitingjor the to stop the spread of Acquired Immune DeficiencySyndrome countryjor which she will" be (AIDS), which Mrs. Rose's donations had helped fund. remembered. I knew I had more But the judge sided with the testimony of her daughter, one Nancy Day, who said that her mother's mind and pock­ than enough moneyJor myself. I etbook had been picked by supporters of LaRouche. She had taken care ojmy children to luridly demanded that the judge returnto her "my mother and the best ojmy ability ...so I was her stocks." Because Elizabeth was not present at the final day of privileged to give the money I did to testimony, the judge refused to rule on the question of her the ldfo rts which LaRouche's competency. He did, however, remark before the press that associates had initiated." he thought she had been the victim of "designing persons" and appointed the designing daughters temporary guardian ad litem to "investigate" whether the funds donated by Eliz­ abeth could be returnedto her estate through a court suit. collapsed in the United States already." Elizabeth did submit testimony in writing to the final The Commission is to investigate violations of human day's hearings; through her attorney, Oscar Gaskins. She rights in the United States committed against people such as characterized the hearing as disgusting and described her Mrs. Rose, a POlitical supporterof LaRouche whose children family members as being instructed on how to lie, in order to have been turnedagainst her and taken herto court. obtain an incompetency ruling. Mrs. Rose, an 84-year-old, was in Rome, because she "No one," she pointed (jut, "is interested in finding out chose not to sanction "incompetency" proceedings brought why I gave the money. The law is not being carried out here against her by her family in a Pennsylvania court. She there­ as anyone but a lawyer could see ....This was a chance for fore walked away fromthe Bucks County courtroom, where an old lady to do something exciting for the country for which her daughters with the obvious aid of a corrupt judge were she will be remembered. I knew I had more than enough seeking to have her declaredmentally incapable of managing money for myself. I had taken care of my children to thebest her person or finances. of my ability . . . so I was privileged to give the money I did Ironically, these daughters argued that the LaRouche sup­ to the efforts which Lyndon LaRouche's associates had ini­ porters to whom their mother had made political donations tiated." were "designing persons. " If the pattern established in this court is permitted to continue, political opposition to the Eastern Establishment Pandemonium" will be crushed. Elizabeth Rose's failure to appearin court to hearherself Should' Mrs. Rose be declared incompetent solely on, declared incompetent caused pandemonium among her grounds of her Political affiliations when she returns from daughters, who are known to be working with journalists Europe, she will bethe secondknown victim of Shcharanskii­ who work for the drug lobby against LaRouche. Thedaugh­ style justice in U. S. courts. Earlier, in July, another Penn­ ters were instructed in how to move to destroy her after she sylvania courtfound Lewis du Pont Smith, heir to the du Pont contributedseveral hundred thousanddollars to three organ­ family fortune, "incompetent" on grounds of his support for izations which have backed the political and economic poli­ LaRouche, and removed from his control his personal assets cies of Mr. LaRouche-the Fusion Energy Foundation, Cau- and his right to marry .

68 National EIR November 14, 1986 Eye on Washington by Nicholas F. Benton

their "Trust" allies running the food and precious metals cartels to manip­ ulate world prices to incite political Jitters over LaRouche revolt virtually whereverthey please, emergence in 1986 especially with the International Mon­ Pay no attention to Democratic Party etary Fund (IMF) breathing down the Philippines: confessions leaders' post-election drivelings about necks of these countries, demanding the "defeat" of LaRouche candidates of the Reagan impossible conditions on debt repay­ nationwide. administration ment. Thus, the Philippines is a prime Their pronouncements about hav­ A Reagan administration adviser con­ example that the Reagan administra­ ing "stopped LaRouche" are not taken fided to this reporter while in Santa tion has not only lost control of the seriously by themselves or anyoneelse Barbara with the President the first Senate because of its acceptance of in Washington. weekin Novemberthat concerted State Don Regan's economic policies, but In reality, official Washington is Department efforts to remove Ferdi­ is rapidly losing the world as well. shaken to its boots over the emergence nand Marcos from the Philippines Nothing is more pathetic than the of LaRouche as a major, and perma­ presidency has not deterred the rise of sight of a leading policymaker shrug­ nent, force on the American political communist insurgency in the country . ging his shoulders with an impotent landscape in 1986. Three events con­ In a masterpiece of convoluted grin on his face, as if he is helpless in tributed to this in their view: 1) the logic, he said that while the State De­ the face of the "magic of the market­ upset victories by LaRouche candi­ partment (with Asian Affairs head place." dates Janice Hart and Mark Fairchild Wolfowitz running the show) consid­ in the Illinois Democraticprimary last ered the removal of Marcos very im­ March; 2) the LaRouche-sponsored portant, nontheless, his replacement Kissinger's shadow cast AIDS initiative in California which by Aquino hasn't changed anything as drew the fire of every major "institu­ faras political stability in the country over White House tional" force at a time When the pub­ is concerned. From his office at the Center for Stra­ lic's growing contempt for "institu­ So why did they get rid of Marcos? tegic and International Studies (CSIS) tions" is, in the view of one leading The adviser admitted that Marcos a few blocks from the White House, strategic analyst, the greatest threatthe wasn't responsible for what had hap­ the former Secretary of State Henry nation faces; and 3) the great Leesberg pened to the economy in that country. Kissinger is casting a long pear-shaped panty-raid, when 400 feds and state "It is world sugarand coconutoil prices shadow. police turned LaRouche into an in­ which determine the destiny of the Recent developments, such as the stant folk hero, pitted against the ex­ Philippines," he conceded, "as hard as release of the hostage Jacobsen and cesses of politically motivated police it is for people to understand that." revelations about the activities of for­ actions in a way that hasn't been seen He also admitted that these eco­ mer National Security Adviser Robert since the days of MartinLuther King . nomic factors, and not political fac­ McFarlane, are but harbingers. These three events have turned tors, determine the ferocity of the Conniving with Kissinger are fel­ LaRouche into a household word in communist insurgency in the country . low CSIS employees Zbigniew Brze­ 1986, and all the media slanders and He noted a one-to-one correlation be­ zinski and McFarlane. Recall that legal excesses have only served to feed tw�en where the pockets Of economic Brzezinski, while in the Carter admin­ this. In California, because of the way hardship are located, and where the istration, also implemented the "Ber­ the enemy played it, a vote for the communists are the strongest. nard Lewis Plan" for fomenting reli­ AIDS initiative became a vote for Whether or not he realized it, the gious fundamentalist movements de­ LaRouche, and 2 million people voted administrationadviser was saying that manding regional or tribal autonomies for it. In Illinois, Janice Hartgot more a communist takeover of the islands is in the so-called "arc of crisis" extend­ votes in November (469,000)than she inevitable, as long as the Reagan ing from Turkey to Bangladesh. He got when she won in March(359 ,000). administrationinsists on perpetuating used Ramsey Clark to advance his No one in Washington thinks its "free trade" economic insanity. overthrow of the Shah and bring LaRouche has been stopped. On the Such "free trade" policies (which Khomeini to power in Iran, as part of contrary, they fear he's just getting Marcosresisted) enable the Soviets and this scenario. rolling.

EIR November 14, 1986 National 69 NationalNews

tion of The Tablet, a British Catholic publi­ difficulties for health authorities. In Sep­ cation, the probe found that the situation in tember, a group of physicians in Dusseldorf, the seminaries was "generally satisfactory," West Germany published a report on the Justice Department but pointed to a number of problem areas . case of a four-year-old boy who contracted The criticisms are consistent with recent AIDS from blooda transfusion. When other seeks to oust Enrile Vatican censure of the U.S. Church. members of the family were tested, it was The u.s. Department of Justice has launched The investigation, conducted during discoveredthat the child's older brotherwas an investigation of Philippines Defense 1983-84, was of "free-standing" Catholic also infected . The mother recalled that the Minister Juan Ponce Enrile, in a politically seminaries. It was carried out by teams of older child was bitten by the AIDS patient motivated "watergating" effort aimed to bishops, religious superiors, and seminary several months before. force Enrile to give up his hard-line stand leaders, under the direction of Bishop John against the communist insurgent New Peo­ Marshall of B�rlington, Vermont, who was ple's Army (NPA). Enrile was defense min­ appointed by Pope John Paul II. Reports on ister in the goverment of Ferdinand Marcos, college and university level seminaries where and helped to engineer the coup against him. more than one institution is involved are The DoJ investigation is based on claims expected to be released in 1987. Appeal filed for that Enrile diverted U . S. aid monies into his The current report was written in the jailed' EIR journalists own pocket and to real estate ventures in the form of a letter to the U.S. bishops from Lawyers for Jeffrey and Michele Steinberg, United States. Cardinal William Baum, head of the Vati­ EIR journalists jailed since Oct. 6, filed an In a statement from Manila on Nov . 3, can Congregation for Catholic Education. appeal to the denial of bail in U.S. District Enrile angrily denounced the Justice De­ Despite some "substantial" problems, no­ . Court in Massachusetts on Nov. 5. The partment's move . "I have nothing to do with tably the need for "emphatic clarification Steinbergs, security aides to Lyndon La­ any kind of U.S. aid money," he said. 'These and redress" in the teaching of moral theol­ Rouche, were charged with "conspiracy to reports are apparentlyp art of a veiled black­ ogy in some seminaries, he said, the major­ obstruct justice" in a federal indictment mail scheme to stop what some perceive to ity of colleges offered balanced and faithful against several LaRouche associates arid or­ be an unseemly conduct on our part as far as programs. ganizations. They are demanding revoca­ our internal policies are concerned. Need­ According to Cardinal Baum, there had tion of a magistrate's order of detention, and less to say, I shall not be silenced or intimi­ been "a few instances of dissent from the the establishment of conditions of release. dated by any designs to prevent me from inagisterium" on matters of moral theology, serving the national interest. . . . but this was not a "major characteristic ." Lawyers William Moffitt and Thomas "I never expected that ill-meaning quar­ While curricula were generally character­ Jones argue that a full evidentiary hearing ters would stoop so low in their partisan ized by "balance, fidelity, pedagogic appro­ must be held to review the decision to with­ efforts to besmirch not only my name but priateness and pastoral sensitivity," there hold bail. Such a hearing, they argue, will that of my family. . . . I have all the records were some "inadequacies and confusions," show that the government based itscase for in my possession and I am willing to show and a notable "undervaluing of philoso­ pretrial detention on impeachable hearsay them to anyone who makes a legal chal­ phy ." evidence. The appeal brief further argues lenge." that the government has violated the Stein­ The U. S. General Accounting Office last bergs' rights, in particularthose guaranteed year sent two delegations to Manila to in­ by the fifth and sixth amendments. vestigate alleged diversion of U.S. aid funds, In a related development, Paul Gold­ EIR and came up with no evidence to show such ACLU defends children's stein, counterintelligence editor of a diversion . (along with Jeffrey Steinberg), ret� to 'right' to get AIDS the United States on Nov. 5 from a trip The American Civil Liberties Union is suing abroad, and was arrested by FBI agents at the school board of Ascadero, California, Logan Airport in Boston. Goldstein, who is for suspending a student with AIDS , after also a security aide to LaRouche, was one he bit another child. of those indicted during the Oct. 6 r8id in Vatican investigates According to the radical civil libertari­ Leesburg, Virginia. Goldstein's return had ans , the bite was a "trivial act of self de­ been the subject of two weeks of negotia­ U.S. seminaries fe nse" that endangered no one, and the boy tions between his counsel and government The preliminary results of a Vatican inves­ was a victim of illegal discrimination against attorneyS . . tigation of 38 seminaries in the United States the handicapped. He pleaded not guilty to the trumped-up were released in Washington, D.C. on Oct. The number of cases of childhood AIDS charges of obstruction of justice, and was 5. According to a report in the Oct. 18 edi- is growing around the world, posing major released from custody on Nov . 6 under a

70 National EIR November 14, 1986 Briefly

• WILLIAM BURCH, the com­ "work-release" program . Goldstein will be York, and we must begin to take steps to monwealth attorney of Loudoun pennitted to leave an as yet undetennined control this terrible disease in our state ." County, Virginia, has launched a bid Virginia prison between 8 a.m. and 8 p.m. Rhodes called the Celeste administra­ to revoke the concealed weapon per­ tion's brochures on AIDS "pornographic ," mits of five security guards employed and asked, "How can you expect to control by Premiere Services, the company the spread of AIDS in Ohio when the State that provides security for Lyndon Health Department under Celeste officially LaRouche . Kampelman: We may condones the lifestyle that caused the spread of AIDS in the first place? • TWENTY-NINE U.S. senators never deploy SDI "I don't care what anybody thinks, I'm have asked President Reagan to order Chief U.S anns negotiator Max Kampelman telling you what I know and what I've read . the same sanctions against Syria as hinted that the Strategic Defense Initiative There is no end to the spreading of AIDS in he imposed on Libya, becauseof Da­ may never be deployed, in a speech in Lon­ Ohio. Let them go talk to the parents of a mascus's supportof international ter­ don Oct. 30. Calling SOl an "exploratory" child who's contracted AIDS ....History rorism, UPI reports . Thesenators said program , Kampelman said: "A decision on will bear me out in this . The life of Ohioans in a letter to the President that he whether to move ahead with the deployment is more importantthan Dick Celeste and Jim should break off virtually all trade of strategic defenses is probably years away; Rhodes." with Syria. it might bemade by PresidentReagan 's suc­ CHICAGO POLICE cessor, but it will not likely be made by • raided the President Reagan himself. Nor is the deci­ headquarters of the terrorist EI Rukn sion foreordained. There are ample exam­ group on Oct. 30, capturing a huge ples of weapons systemsfor which research SDI funding cuts will arms cache including shoulder­ was completed but which were not deployed launched surface-to-air missiles and or maintained. " hit laser research anti-tank weapons. EI Rukn and its This statement by the arms negotiator is Lt.-Gen. John Wall, head of the Anny Stra­ leader, Jeff Fort, have long been as­ in directcontradiction to the policy of Pres­ tegic Defense Command, said in an inter­ sociated with Louis Farrakhan of the ident Reagan and Defense Secretary Caspar view published in the Washington Times on Nation of Islam and with Jesse Jack­ Weinberger. Nov. 3 that the 35% cut in funding for the son. The weapons cache is believed Kampelman's remarks were cited by Strategic Defense Initiative voted by the to have been financed by Libya via Baltimore Sun defense correspondent Congress will probably force officials to fo­ Farrakhan, as part of Qaddafi 's plan Charles Corddry in an article published Nov . cus on already-existing weapons, such as tobring terrorismto the United States. 5, as proofthat U. S. negotiators in Geneva rocket interceptors, rather than lasers and "may be hinting at further accommodation other directed-energy devices. • mREE U.S. WARSHIPS fired on the 'star wars' defense scheme ." Kam­ "Kinetic-energy weapons are ahead of a 21-gun salute in honor of the Peo­ pelman's speech "was not likely to have been laser weapons. That's all there is to it," he ple's Republic of China, as they sailed overlookedby Moscow," wrote Corddry . said. "And it goes for the whole class of into Qingdao Nov. 5 on the U.S. Na­ directed-energy weapons ." Wall said that vy's first visit to the country since the Congress, by slashing the SOl budget for communists took power in 1949. several years in a row, is forcing the aban­ donment of full-scale research efforts. "In • JIMMY CARTER on Nov. 2 Governor Rhodes: Ohio [the] 1986 budget we had to cut out some condemned the U.S. April bombing technology. In 1987, we're probably going of Libya, saying the raid killed inno­ must stop AIDS spread to have to cut out some programs. We may cent people andturned Qaddafi into a Fonner governorJames Rhodes of Ohio an­ have to decide whether to have a ground­ hero. Carter was speaking in Bangla­ nounced on Oct. 30 that he would build based laser or a space-based laser, instead desh, on a two-day visit as chainnan "containment centers" for AIDS victims in of both," he said. "I think we could spend of the Malthusian organization Glob­ Ohio, 'if he were again elected governoron judiciously and wisely a lot more money aI 2000. Carteralso called the Reagan Nov A. His re-election bid was defeated by than we have right now. " administration's "StarWars" plan "a inclimbel'lt Democrat Richard Celeste. Contrary to the claims of such devotees mistake for our nation to pursue . . . . Rhodes told an audience at Cleveland's of "off-the-shelf' technology as Lt. Gen. It is enormously costly and it may St. Maron Catholic Church: "Ohio has one (ret.) Danny Graham and his "High Fron­ mislead our Americanpeople into be­ of the highest rates of increase in AIDS cas­ tier" group, the SOl without laser and other lief that we can have an umbrella of es in the ' nation, "145% last year, as com­ directed-energy research will be a dead let­ protection over our nation." pared to 51% in California and 40% in New ter.

EIR November 14, 1986 National 71 Editorial

Now, let's talk economics

The most important news story of the week, is that stand what has gone wrongr Only EIR and LaRouche General Motors waited until after the Nov. 4 elections, have proved themselves knowledgeable enough of eco­ to announce its plan for shutting down 11 auto plants. nomic principles to know what has gone wrong, and Earlier, EIR had informed readers repeatedly, that a what is to be done about it. That must be acknowledged, concerted effort was being made to cover over the fact and LaRouche's poi icy must be adopted. of an impending international economic crisis until aft­ Our general analysis has been consistently accurate er the Nov. 4 election. We told you, that our estimate for decades, and has becom� increasingly precise since was, that the economic crisis would surface to public computer-assisted forecastil!lg was launched at the end attention during the weeks following the election, and of 1978. In one sense, this is not news to some readers; that news on the economic situation would become yet, in another sense, it is news. You read it, and the worse and worse into the spring of 1987. argument seemed logical to you, but you did not yet Yet, since the middle of 1983, the less impover­ feel it; you admired our analysis, as spectators admire ished section of the population, which by rights should the action on the sports playing-field, not as participants be reading EIR and ElR's Quarterly Reports, has been in the affray they witnessed. Now, the reality of the clinging wishfully to the administration 's propaganda­ situation begins to grip you ,as something actually hap­ line, alleging that a "U.S.-led economic upsurge" had pening to you. Our facts now have emotional , as well been in progress since the close of 1982. as contemplative appeal . . Now , that has all been changed, rather suddenly. Many breaking issues will activate the population's First, even the liberal news media has featured the fact, political sense, but the constant source of energy will that the Reagan administration and Republican Party be the developments in the economy. That is the lesson combined, made a nearly fatal blunder in continuing of the Nov. 4 election results . We are the world's only the "economic upsurge" line . Around the country , vot­ authority on the economy. ers (and non-voters) are saying to themselves, we pun­ The key political questi�n, is the fact that the Pres­ ished the Republicans and the administration for stick­ ident's only chance to avoid becoming not only a "lame ing to the fairy-tale about the actually nonexistent eco­ duck," but also politically a "dead duck," is to dump nomic upsurge. Two days after the election, General his past "economic agenda," and to begin facing reali­ Motors blew the lid off the "economic upsurge" myth, ty , exactly as we have insisted he must. announcing the scheduled plant shutdowns. Suddenly, ElR's job is to get the truth about the economy out it has become "acceptable," to speak openly of the to everyone who is still sane . You can help us to do worsening economic situation . this, by urging your colleagues and friends to subscribe, The other leading feature of the 48 hours after the and where necessary by taking out gift subscriptions election, was the general recognition of the grertt in­ for public officials and other decision makers . We can crease in the political clout of EIR and its friends. Not launch a general economic tecovery, which will begin only did 2 million in Californiavote for Propmition 64, to occur immediately if LaRouche 's economic program but according to "official estimates," the candidates is adopted. associated with LaRouche's policies gained the highest If the President does not accept that, fairly soon, he vote totals ever in general elections, as distinct from is already a "lame duck." The issue, however, is not primary elections. whether President Reagan goes down in history as a The leading issue now , is "What do we have to do, "new Herbert Hoover." The issue is, what happens to to stop this collapse of the economy?" To understand our nation and civilization, during the crucial last two what must be done , readers must first begin to under- years of Mr. Reagan's presidency?

72 National EIR November 14, 1986 Our special service for the policymaker who needs the best intelligence EIR can provide immediately. Wgrld events are moving rapidly: The economy is teetering on the brink, and even the largest American banks are shaking at their fo undations. Soviet-backed terrorists have launched a shooting war against the United States. In Alert Washington, the opponents of the President's defense program are in a desperate fight to finish offthe Strategic Defense Initiative.

We alert you to the key developments to watch closely, Alert and transmit 10-20 concise and to-the-point bulletins twice a week (or more often, when the situation is especially hot). The "Alert" reaches you by electronic mail service the next day. A daily 3-minute telephone hot-line is provided to subscribers.

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