Satanism is a criminal conspiracy, but it is also a political movement which bridges the separation between extremists on the left and those on the right. This report is your defense against it.

Crime Wave of the Who is right? '905

New York Archbishop Cardinal John O'Connor has denounced heavy metal rock as "a help to the devil" and said that "diabolically instigated violence is on the rise." (March 4, 1990)

But the Federal Bureau of Investigation's expert, Kenneth Lanning, claims: "Far more crime and child abuse has been committed in the name of God, Jesus and Mohammed than has ever been committed in the name of Satan." (June 1989)

Satanism: Crime wave of the '90s Read the definitive study by EIR's inves­ . t · tigative team, including: The Matamoros murders; Manson; the Atlanta child murders; the satanic roots of 'rock.' Plus, "The theory of the satanic personality," Order the "Satanism" Report. by Lyndon H. laRouche,' Jr. Learn the Make check or money order payable to: $100 extent of the satanist epidemic, who its EIR News Service postpaid high-level protectors are-and why some P.O. Box 17390 per copy officials want to cover it up. 154 pages. Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman From the Editor Managing Editors: John Sigerson. Susan Welsh Managing Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert; Gerald Rose. Allen Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White e are devoting over one-quarter of our expanded 80-page issue Special Services: Richard Freeman thisW week to an urgently necessary task: exposing the Anti-Defama­ Book Editor: Katherine Notley Advertising Director: Marsha Freeman tion League for precisely what it is, a criminal organization, a tool Circulation Manager: Cynthia Parsons of the Anglo-Soviet imperial condominium, dedicated to targeting INTELLIGENCE DIRECTORS: and eliminating individuals and organizations committed to the Ju­ Agriculture: Marcia Merry Asia: Linda de Hoyos deo-Christian ideal and the good policies which flow from that. Far Counterintelligence: Jeffrey Steinberg. from fighting anti-Semitism, the ADL anti-Semitism, not Paul Goldstein foments Economics: Christopher White only by targeting those seriously trying to eliminate its cultural roots, European Economics: William Engdahl. Laurent Murawiec but by acting as agents provocateurs, staging anti-Semitic "inci­ lhero-America: Robyn Quijano. Dennis Small dents" which are then used to manipulate public rage in directions Medicine: John Grauerholz. M.D. Middle East and Africa: Thierry Lalevee suitable to the aims of Moscow and its well-wishers in the West. The Soviet Union and Eastern Europe: latest atrocity in Carpentras, France has all the earmarks of such an Rachel Douglas. Konstantin George Special Projects: Mark Burdman operation (see p. 31), and is in keeping with the latest joint ADU United States: Kathleen Klenetsky KGB effort to portray American statesman Lyndon LaRouche as an INTERNATIONAL BUREAUS: ally of the anti-Semitic Russian Pamyat (p. 30). Bangkok: Pakdee Tanapura. Sophie Tanapura Bonn: George Gregory. Rainer Apel Why has Lyndon LaRouche been singled out as the ADL's top Copenhagen: Poul Rasmussen hate-object? And why are the Establishment media beating the drum Houston: Harley Schlanger Lima: Sara Madueiio so hard about a "resurgence of anti-Semitism" in Europe? Part of the Mexico City: Hugo Lopez Ochoa. Josefina answer lies in the fact that in the months since the November 1989 Menendez Milan: Marco Fanini revolution in East Germany, LaRouche's name has become synony­ New Delhi: Susan Maitra mous with his proposal to tum continental Europe into a superpower Paris: Christine Bie"e Rio de Janeiro: Silvia Palacios through a massive infrastructure project, centered on building a trian­ Rome: Leonardo Servadio. Stefania Sacchi gle of high-speed rail links between Paris, Berlin, and Vienna. But Stockholm: Michael Ericson Washington. D.C.: William Jones not just any high-speed rail: Last week's and this week's Science & Wiesbaden: G6ran Haglund Technology section (p. 20) feature magnetically levitated rail-by far the best way to move both freight and passengers during an EIRIExecutive Intelligence Review (ISSN 0273",(;314) is published weekly (50 issues) except for the second week economic mobilization. When you consider that back in the 19208 of July and lasl week of December by EIR News ' Service Inc .• P.O. Box 17390. Washington. DC 2()()41- the average net speed of a trip from Chicago to St. Louis was 120 0390 (202) 457-8840 European Headquarte,..: Executive intelligence Review miles per hour, whereas today it's a miserable 45 mph, you can see Nachrichtenagentur GmbH. Postfach 2308. Dotzheimerstrasse 166. 0-6200 Wiesbaden. Federal how much catching up the United States has to do. But it can't and Republic of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. mustn't be done by gradual steps: It's far cheaper to build maglev Michael Liebig roadbeds than conventional high-speed rail or highways, and you In Denmaric: EIR. Rosenvaengets Aile 20. 2100 Copenhagen OE. Tel. (01) 42-15-00 wouldn't even need locomotives, so that switching large amounts of In Mexico: EIR. Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. freight would become immensely simplified and speedier, too. /fI[HJIt subscriptionsales: O.T.O. Research Corporation. Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (03) 208-7821.

Copyright © 1990 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C .• and at an additional mailing offices. 3 months-$125. 6 months-$225. I year-$396. Single issue-$IO Postmaster: Send all address changes to EIR. P.O. Box 17390. Washington. D.C. 20041-0390. ITillContents

Science & Te chnology Departments Economics

20 V.S. could leapfrog 61 Panama Report 4 Budget crisis reaches a Europe, Japan in maglev Did u.s. agents arm Colombian turning point for Bush technology mafias? As the second Great Depression of Part II of a survey of magnetically this century deepens, gutting the levitated high-speed transport 62 Dateline Mexico productive tax base, the President is technology, which are not Pope calls for Ibero-American getting ready to break his "Read "boondoggles" as the zero-growth unity. My Lips" promise, and gut the Establishment argues, but rather economy even more with regressive could bring a major leap in moving 63 Report from Rio taxes and top-down austerity . people and freight in an expanding Project Democracy gang under industrial economy . Marsha attack. 6 World grain production Freeman shows how maglev's declines, as fascists build potential is an object lesson in 80 Editorial 'no meat' campaign Hamiltonian physical economics. Two steps backward, one step forward . 8 The hour of truth: shock treatment for Brazil's debt? Documentation: Excerpts from "1990-2000: The Vital Decade," by Brazil's SuperiorWar College.

11 At Asian Development Bank, V.S.-Japan rift is evident

14 Currency Rates

15 Highways crippled by Clean Air Act lunacy

16 Smoke billows from clean air debate

18 Business Briefs Volume 17 Number 21, May 18, 1990

Feature International National

50 Baltic republics fear Bush 66 Jury refuses to buy Bush's sellout at summit Iran-Contra story Lithuanian President Vytautas A gaping hole has been ripped in Landsbergis put it very succinctly the coverup of George Bush's role to a Swedish newspaper, saying in the Iran-Contra guns-drugs­ that "the West is helping the hostages deals, when a jury found . Soviets to crush our freedom. " that Richard Brenneke did not lie Moscow expects that at the when he said he flew Bush on a upcoming summit, Bush will allow mission to work out a deal with Gorbachov to begin the killing in Iran's Ayatollah Khomeini. Chicago: a recent rally in front of the headquartersof the American DopeLobby. earnest. Documentation: World press points to Bush's P-2link. 52 Gorbachov courts Soviet 28 Anti-Defamation League military as pillar of spreads Moscow's lies 70 Summit's approach brings Edgar Bronfman'sWorld Jewish stability for the empire new Soviet demands and Congress and ADL network have more Bush concessions been caught red-handed spreading a 54 Carlos Andres Perez serves new round of lies attempting to as Kissinger's socialist 72 Thornburgh longs to scrap portray the originator of the U. S. Trojan horse Constitution Strategic DefenseInitiative, Venezuela's President wants to Lyndon H. LaRouche, Jr., as an mediate a "dialogue" between the 73 Who's protecting Beijing's "anti-Semite." drug lords and the government of spies? Colombia. 30 KGB-ADL 74 Prunskiene sets higher 'dezinformatsia' tries to 56 Colombian drug lobby goals for U.S. link Pamyat to Lyndon blames military for LaRouche political assassinations 75 Eye on Washington Conan meets another barbarian. 31 LaRouche on the reaction 58 Establishment lashes out at Scottish civil rights lawyer to Carpentras atrocity 76 Congressional Closeup He signed a "friendof the court" brief in the appeal of Lyndon 32 Tax-exempt treachery: a 78 National News profile of the Anti­ LaRouche's political frameup. Defamation League Since its founding in 1913-the 60 Mideast tensions rise as same time as the founding of the Soviet Jews emigrate Federal Bureau of Investigation­ the gangsters known as the ADL 64 International Intelligence and their international networks have functioned as the key enforcer of the policies of the Anglo-Soviet Trust. A summary dossier by EIR's Counterintelligence Staff. TIrnEconomics

Budget crisis reaches a turning point for Bush

by Chris White

On May 15 begins what will, without doubt, be the firstin a ing austerity was implemented. series of so-called summit meetings between the White Of course, there are also those who look at the cleared House and congressional leaders on the subject of the Fiscal presidential table, and the dishes that are about to be served Year 1991 budget, and the federal government's budget up, somewhat differently. OVer the same weekend, the fi­ deficit. A Sunday, May 6 gathering at the White House, with nance ministers and central bank governors of most of the Bush, Budget Office Director Richard Darman, Treasury Group of Seven nations were gathered in Washington, D.C. Secretary Nicholas Brady, and the majority and minority for one oftheir regular exchange rate and monetary coordina­ leaders of Senate and House, respectively George Mitchell tion meetings. By May 8, the V.S. Treasury was preparing and Tom Foley for the Democrats, Robert Dole and Robert to begin the largest quarterly debt refinancing in its history, Michel for the Republicans, cleared the way for what the when $30.4 billion of 3-year, lO-year, and 30-year bonds pundits now presume will rapidly become a matter of "sub­ were to be brought onto the market. stance" rather than merely process. Could not the weekend table-clearing have simply been The May 6 meeting marks a watershed, of sorts, for the one of the regular series of tricks pulled off by this administra­ President and his administration . For his leadership style is tion? A coup de theatre, designed to encourage increasingly perhaps best epitomized by the notorious one-liner from his reluctantparticipants from abroad in V.S. Treasury auctions, 1988 election campaign, "Read my lips: No new taxes." The to keep the money coming, on the basis of an apparent com­ participants agreed that there would be "no preconditions" mitment from the leaders of V . S. institutions to do something applied to the upcoming budget summit. "Everything would to reduce the deficit they have been required to continually beon the table," it was later stressedby White House spokes­ finance? man Marlin Fitzwater. The President wants "an open debate The auction over, successfully, Washington would go that is unfettered with conclusions about positions taken in back to its usual ways until the next such quarterly financing the past." falls due, on or about Aug. 15, breathing a sigh of relief that So, it seems, May 6 was the day that this President had the tottering V.S. credit structure had been held together in to begin to eat the political equivalent of the broccoli which, the interim. he once told us, it was his presidential prerogative to refuse. Indeed, over the next weeks, it may become evident that Tax revenue base collapses the May 6 White House meeting marks the same kind of There is much more involved. Publicly, it is reported that turning point for the present administration as the meetings the trigger for the May 6 White House gathering was the held in the Nixon White House in the spring and summer publication on May 4 of the Bureau of Labor Statistics non­ months of 1971. Those meetings produced the notorious Nix­ farm sector payroll series of employment data. If the 70,000 on V-tum, when the Friedmanite free enterprise advocate or so people taken on to the government's payroll to conduct became a converted Keynesian emulator of British Prime the 1990 census are excluded, non-farm payrolls shrank for Minister Harold Wilson. On Aug . 15, 1971, the dollar was the firsttime since the Greatest Period of Prosperity in Ameri­ taken off the gold standard. Later, after the bankruptcy crash can History began, back in 1982-83. of the Penn Central Railroad, the full panoply of wage-goug- Behind the scenes, it had been evident before Treasury

4 Economics EIR May 18, 1990 official Glauber announced the quarterly refunding require­ been the $200 billion per annum junk bond market had col­ ment on May 1, that top-level officialswere already apprised lapsed to zero. There were no new issues that month. Corpo­ that revenues coming into the IRS after the April 15 tax rate earnings for the first quarter of 1990 fell by 18% com­ deadlines were way, way down. It can be surmised that news pared to the same quarter the year before, after a fall of 15% of the mounting revenue shortfall, which Glauber refusedto in the fourth quarter of 1989 compared to the same quarter address in his cited press conference, was prominent among in 1988. Among the worst performers were the steel industry , the factors which precipitated the White House turn away off 51 %; the automobile industry , down 64%; marine trans­ from the standing "Read My Lips" doctrine. When asked portation, down 68%; and trucking, down 97%. Eastern if he had an estimate on tax revenues, Glauber refused to banks, which include the tottering New England Federal Re­ comment. serve District were down 60%, and the catch-all diversified The administration has yet to give any estimate as to how financial services down 98%. large the shortfall in revenues collected after April 15 might The earnings collapse was accompanied by a parallel be. Taken together, the turn in the employment series, and collapse in the rate of increase of lending during the quarter. the decline in government revenues, show that the reality of Business lending for the first quarter was down about 30% economic collapse has finally begun to catch up with this from the year before; real estate lending was down by almost administration. Rising employment keeps up the nominal 40%; and lending to consumers, one of the mainstays of the amount of the revenue the governmentderives from house­ so-called recovery, was down 65%, at an annualized level, hold and individual taxes and Social Security payments. from the rate of the year before. When employment and revenues begin to fall together, then immediately at hand is the prospect of an accelerating chain Budget deficit out of control reaction, such as economic collapse, reflected in bankrupt­ There was one element of growth in all this. At a meeting cies and unemployment, reduced government income, held for Republican lawmakers on May 8, Director of the while, at the same time expenditures on such accounts as Office of Management and the Budget Richard Darman pro­ unemployment and welfare increase. Then the government's vided the admnistration's third revision of its estimate of the deficitballoo ns, and efforts to contain catastrophe by cutting federal budget deficit for the 1991 fiscal year. In January, expenditures, the method adopted consistently since 1981, when Bush delivered his budget message to Congress, it was simply accelerate the decline. estimated that $34 billion would have to be cut to meet the Gramm-Rudman target of a $66 billion deficit. By March, Crisis can no longer be ignored Darman had increased that estimate to the range $40-50 bil­ The watershed is not simply a political or rhetorical type lion. Now, in the estimate of the administration, the range is of turningpoint . Between Sept. 15, 1989 (when the failure of $60- 100billion in cuts required to meet the Gramm-Rudman Canadian speculator Robert Campeau's Allied and Federated target, depending on whether the savings and loan bailout is department store empire collapsed the secondary market in included or not. Meanwhile, the estimated deficit for the non-investment-grade securities, the $200billion per annum fiscal year in progress is increasing proportionately, and as pool of funds from which the otherwise non-creditworthy frequently. The administration's estimate began the year at borrow) and Oct. 13 (when the stock exchange's Dow-Jones $123 billion, and has been upped to over $150 billion. The Industrial Average fell by 200 points), the U.S. economy Congressional Budget Office goes higher, into the range of and financial system entered a deflationary spiral. Alan $180-200billion . Greenspan at the Federal Reserve and his colleagues among So, Sunday, May 6, the President had his first generous the federal regulatory agencies, government departments, helping of budget broccoli. There will be more to come, and and the investment and commercial banks, attempted to deal not just for him. For we will surely now get the kind of idiocy with the changed reality the same way they dealt with the which says that the way to deal with collapsing revenues is crises that erupted between 1982 and 1989, when the volume to increase taxes. That is, in effect, to say that the way to of combined debt and financial speCUlationwas increased by deal with a depression is by making the depression worse. about $2 trillion each year. They threatened, they black­ And it will be worse. For there are also groupings, typified mailed, and they threw money at problems, to maintain the by Georgia's blow-dried Republican congressman Newt appearancethat everything was as it had been. Daily Federal Gingrich, who are calling for emergency powers for Bush so Reserve intervention into the New York Stock Exchange, via that the President can deal with the crisis as he sees fit. Chicago's futures index, to keep the Dow within a narrowly The knee-jerk reaction will indeed be: austerity and more definedrange; weekly infusions of credit into collapsing parts austerity, especially against those least able to bear it, togeth­ of the banking system, like New England; and arm-twisting er with the elaboration of the institutions of a police state to of allies for funds, as in the case of Japan, are part of the enforce that austerity. That is no doubt the menu that is being pattern. prepared right now in various kitchens, for presentation to And none of it worked. By the end of March, what had the newly cleared presidential table.

EIR May 18, 1990 Economics 5 World grain production declines, as fascists build 'no meat' campaign by Marcia Merry

As spring planting draws to a close in the northern latitudes, months to 2 years--enoughto bridge the gap between poor the full horrorof world food shortages is becoming apparent. harvests, and to span disaster recovery times. This year's global harvest--even with perfect crop-growing To provide enough grain for a plain, but adequate diet weather-won't even begin to replenish the dwindling world for all 5 billion-plus people on Earth, there needs to be 3 grain reserves. At the end of the 1989-90 crop season, the billion tons of grain output a year, counting grain consumed world's grain stocks will be even lower than four years ago-­ directly as cereal products, and grain consumed indirectly the net result of limited plantings, impoverished farmers, through feeding livestock for milk, meat, and dairy products. rampaging environmentalists, and, most of all, rotten gov­ Instead, as Figure 1 shows, annual grain output has stag­ ernmentpolicies that are causing or condoning reduction of nated at about 1.8 billion tons in the 1980s, and in 1987-88 food output, and depopulating ever larger parts of the globe. fell to 1.791 billion tons, and 1.746 billion tons in the crop Figure 1 shows the downward trend of grain production, year just completed. The FAO projection for this current and the plunging trendof grain stock levels. The data are from year, based on optimism about theweather, is still only 1.868 the Rome-based U.N. Food and Agriculture Organization billion tons. (FAO) , which said in its March "Food Outlook" report, The decline in crop output is across the board. Therefore, "Even assuming normalweather, 1990 production is unlikely the annual "carryover" of stocks of grain of all types has to be large enough to meet trend consumption in 1990-91 and dropped from 426 million tons in the 1985-86 crop year, allow stock replenishment. With stocks at their lowest level down to under 399 million tons last year. It is expectedthat, for many years, adverse weather would have serious conse­ even with perfect growing weather, there will be only 293 quences." million tons of grain carryover at the end of 1990. In many important grain regions in the United States, The decline is evident for all the major grains globally: neither the farmers nor their fields have recovered from the Wheat: Stocks have dropped from 161 million tons in famous Killer Drought of 1988. The governor of one of 1985-86, to a forecast of only 116 million for the end of the world's leading producers of spring hard wheat, North summer. Dakota, has just asked for official federaldisaster designation Corn and other coarse grains (grain sorghum, barley, for his state, after three years of drought. and oats): Stocks have dropped from 208 million tons in The United Nations bureaucrats, as usual, are understat­ 1985-86 down to 126 million tons expected as of the end of ing the trends, even as they sound the alarm. In fact, total the season. world grain stocks (wheat, rice, com, millet, barley, oats Rice: Stocks have fallen from 58 million milled tons in and all others) will have fallen by 36% in late 1990, as 1985-86, down to an expected51 million tons in 1990. compared with four years earlier. The declines in stocks are most obvious in the six major This has happened because for the past three years in a grain-exporting regions of the world-the areas which in row, annual grain output has been below annual grain con­ recent decades have produced "surplus" for exportand food sumption-itself at an inadequate level for most people. relief. These nations are: the United States, the European Therefore stocks have been drastically drawn down to make Community, Canada, Australia, Argentina, and Thailand. up for this shortfall, and now stocks themselves are diminish­ According to the FAO's March report, "In the United ing, in effect, to nothing. States, by far the largest cereal exporter, wheat stocks at the The projected level of grain stocks this year will be less end of the current 1989-90 season are expected to be the than 17% of annual average consumption. In 1985-86, stocks lowest since 1974-75 and for coarse grains since 1983-84." were about 26% of average annual consumption. Civil de­ The latest "Situation and Outlook" report of the United fense and military logistics planners recommend stocks of 8 States Agriculture Department (USDA) likewise gives a

6 Economics EIR May 18, 1990 bleak picture of the U. S. grain output potential: U.S. wheat. Wheat reserves are at 400million bushels, FIGURE 1 the lowest in 20 years. Farmers areexpected to plant 1 million World cereals production and stocks fall acres less wheat in 1990 than in 1989. If the wheat crop is (Millions of metric tons) less than 2.5 billion bushels, projected by the USDA, then �� ? exports will have to drop. . 1 ,800 . � ..... U.S. corn: -r------_. ... The expected 7.8 billion bushel crop will fall 1,600 short of the combined domestic usage and export demand 1,400 which totals to 8 billion bushels. The USDA estimates the 1989-90 corn reserve at 1.2 billion bushels, which will be 1,200 drawn down to 1 billion bushels, less than two months' 1000 supply. 800 U.S. soybeans: Plantings are down 1.3 million acres from 600 1989. Output is expected to fall below 2 billion bushels. 4OO ------____ ? Reserve stocks are non-existent. t- 200 In this situation of scarcity, the cartel of giant food com­ panies (Cargill, Continental, Archer Daniels Midland­ 0 ;------.------,------.------, Toepfer, Louis Dreyfus, Bunge, Garnac-Andre , and a few 1985/86 1986/87 1987/88 1988/89 1989/90 Forecast others) are deciding who eats, and who doesn't. National pledges to the world food relief agency have dropped from _ Production - Stocks over 13 million tons of grain a year in 1986, down to 11.3 Source: U.N. Food and Agriculture Organization million tons or less this year, despite the dramatically increas­ ing need. Whole nations in Africaare being denied either the means "Either these societies will move quickly toward smaller to produce food, or food relief supplies. The result in starva­ families," warnsthe fascist Brown, "or rising death rates from tion on the scale of genocide. The March FAO report states, hunger and malnutrition will check population growth." "A cause of particular concern is the substantial unmet food Brown hails the murderous policy of Communist China, aid requirement of Angola, Ethiopia, Mozambique, and Su­ where the population growth rate has been reduced by half, dan." The reportfurther states, "The global refugeesituation and people arebeing crushed and suppressed by deliberate has deteriorated further, with the refugee population now primitivism. estimated at 15 million. Their 1990 food aid requirements The New York Times takes a seemingly more sophisticat­ areestimated at 1.3 million tons." ed approach to how the world's people should "adjust" to the In contrast to the measly 11.3 million tons of food grains grain shortage. The May 6 issue's "Week in Review section" relief for 1990 (including Western pledges to Eastern Eu­ carriedon its front page an articleentitled , "Cows in Trouble; rope), 17 million tons of food grains have been pledged to An Icon of the Good Life Ends Up On a Crowded Planet's the Soviet Union from the United States alone this trade year Hit Lists," It attacks dairy and beef livestock from many (beginning Oct. 1, 1989). vantage-points, claiming that their flatulence contributes to President Bush plans to sign a Long Term Agreement for air pollution, etc . But the main fallacy promulgated by the grain shipments to Russia, with Mikhail Gorbachov at the population-"adjustment" advocates, is that animals consume scheduled summit meeting in early June. The United States grain, which could otherwise go to human consumption di­ would commit to send at least 50 million tons of grain over rectly, if people would only forego meat and milk in their the next fiveyears . diets. John Robbins, the author of Diet fo r a New America, is featured demanding that people find alternative food The real aim: eliminate people sources to the centuries-old, nutritious cuisines based on Timed with the release of the FAO and the USDA spring meat and milk. Robbins says, "Cattle and dairy are the most warningrepor ts, "viewpoint" articles are being played up in inefficient use of land conceivable." the media to say that increasing grain output is not the answer, The article also features ten charts and graphs on ques­ and that eliminating people is the actual policy objective. tions of "changing tastes" in consumers, and asserts that "the Lester Brown, the former employee of the U.S. Depart­ 136 million metric tons of grain that feed the beef for 250 ment of Agriculture, who heads up the much-publicized million Americans could feed 400 million worldwide, ac­ Worldwatch Institute, says in his annual "State of the World" cording to Dr. Pimentel of Cornell. " report for 1990, that there are countries like Ethiopia, "and These and similararticles now floodingthe media delib­ scores of other countries where human numbers" outpace the erately downplay the essential role of meat and milk in effi­ economic system. ciently supplying high-quality protein in the daily diet.

EIR May 18, 1990 Economics 7 The hour of truth: shock treatment for Brazil's foreign debt? by Lorenzo Carrasco Bazua

The international creditor banks so notorious for proposing at least five years ahead, instead of remaining at the mercy "shock" as the miracle prescription for all the economic prob­ of rules which only benefitone of the parties. lems of the debtor nations, without regard to the social dam­ ''To abandon the moratorium at this moment is to aban­ age incurred,could end up "damaged" themselves, if Brazil 's don discussion of non-conventional paths to overcome the Collor de Mello government decides to implement what cer­ foreign debt problem. We will surrender our country's tain officials are ironically calling "shock treatment for the strongest bargaining card, but even more important, we will foreign debt." be withdrawing from the key discussion of the crisis which Thus far, President Fernando Collor de Mello has been the internationalfinancial system has been in since 1980-81. explicit that service payments on the foreign debt will be Blunders in the economies of the rich countries are paid for subordinated to guaranteed economic growth rates above an by developing countries like Brazil, always leaving the bitter annual 5% of the GNP. Economics Minister Zelia Cardoso taste of recession, economic stagnation, and resulting politi­ de Mello (no relation) has simultaneously set a maximum cal instability." limit on annual interest payments of $5 billion. By establish­ ing a ceiling on interest payments, the Brazilian government The hyperinflationary threat presumablyhopes to reduce the principal amount of the debt Funaro's words remain true today. The decision to sus­ to a level compatible with pre-determined payment limits, pend the moratorium in August 1987 only produced the polit­ that is, to one-third of its current nominal value. ical decline and discrediting of the Samey regime, giving The Collor government has also refusedto make a "sym­ rise to the mis-government which culminated in the threat of bolic payment" on the debt; the amount of $5 billion, equiva­ hyperinflation, since inherited by successor Collor de Mello. lent to accumulated interest arrears,has been suggested. That Despite its commitment to punctually meet interest pay­ refusal will enable it to renegotiate with the banks from a ments, Brazil was again forced-this time silently and with­ position of strength and with foreign exchange reserves in out the political backlash-into a debt moratorium as of Sep­ excess of $10 billion. This year alone, $60 billion of the tember 1989. Brazilian debt comes due. With its monetary and fiscalreform, the new government Apparently, the design of Cardoso's economic team is to has-until now-successfuUy controlled the hyperinfla­ re-launch the renegotiation process interrupted by former tionary process. It will not defeatit, however, until the origi­ Finance Minister Dilson Funaro's departure from govern­ nal cause of the hyperinflationary threat is uprooted: the im­ ment. Cardoso, along with many of her team, was among mense transfer of resources abroad as foreign debt service. the now-deceased minister's collaborators. In a December As long as the monetary reform, known as the Plan Brasil 1987 article Funaro wrote for EIR, he explained his original Novo, keeps two-thirds of domestic bank holdings frozen, the intentions in declaring the February 1987 moratorium, which Collor governmentwill be unable, morally and politically, to we cite in part: offer foreign creditor banks a solution other than that applied "The telex suspendinginterest payments owed by Brazil to its own banks-namely, the depreciation of its debt to, to the banks clearly states that the moratorium would be minimally, one-third of its nominal value. suspended when-and only when-the two parties find a definitivesolution to the crisis basically created by the credi­ The 'Vital Decade' tor countries. Although the details of the Collor government's debt ''The only approach which would guarantee the growth renegotiationstrategy have not yet been revealed, it is univer­ of our economy, opening prospects for all economic actors, sally understoodthat Brazil can no longer exist as a sovereign is a definitivesolution to the crisis such that Brazil could plan and independent nation if it continues to be subjected to the

8 Economics ElK May 18, 1990 looting conditions imposed during the past decade.The next ten-year period must be one of accelerated growth, if the Documentation country is to achieve its dream of becoming a great nation. That dream is clearly represented in a document produced by the Superior War College under the title "Vital Decade," and presented on April 5 by retiring General Oswaldo Muniz Oliva.The general declared, "This work-courageous, seri­ Excerpts from '1990-2000: ous, objective, and realistic-takes a Brazil without clear The Vital Decade' standing in the world, and projects forward to the year 2000. A copy of this work was offered as a gift to the excellent President of the Republic FernandoCollor de Mello, in hope The fo llowing are excerpts translated from Chapter III of a that he may findit of use to our people." document recently issued by Brazil's Superior War College, "Vital Decade"-which will bethe subject of future com­ entitled "/990-2000: The Vital Decade." The chapter we mentary in EIR-addresses the solution to both the foreign cite is called: "National policy: Brazil on the threshold of and internal debt problem as a pre-condition for the return, the Twenty-firstCentury. " as of 1992, to accelerated growth rates of 7% of the GNP, following an initial two-year period of stabilization at 5% During the next decade, Brazil should orient its development growth rates.The goal is to generate 1 million jobs per year so as to situate itself, on the threshold of the 21st century, throughout the decade, with emphasis on the rapid develop­ among the great democratic and developed nations.. .. ment of the physical infrastructure of the economy, such as It is a matter of definitelyopting for wealth: wealth to be transport, energy, and communications, and the advance of generated by Brazilians through work, dedication, intelli­ capital goods and high technology industries. gence.But wealth to be distributed to all who contribute, by "The basic points of the renegotiation," says the Superior their effort, to producing it. Work is everyone's province, War College paper, "can belisted as follows: both as a duty and a right; the just distribution of its benefits "1) Reducing the principal of the debt in accordance with is also the duty of those who lead, and the right of those who the effectivevalue of the respective bonds on the U.S. finan­ participate. cial market, and with the amount of interest already paid by At the same time, in rubbing shoulders with the great the country; countries on the international scene, Brazil's voice must "2) replacing fluctuating interest rates by fixedones; make itself heard against the clamor of inequalities that pre­ "3) 'securing' the readjusted debt at long-term, low inter­ vail in this world, and in favor of the helpless. est terms and with options regarding these two elements; This national design is not merely possible and desirable; "4) suspending 'relending' for an extended period; it derives both from the very dimension of national power, "5) establishment of clear rules for formal debt conver­ relative to that of other countries, and also to its capacity­ sion, which may only take place in quantities established by necessity, duty, and right-to mobilize. yearly by the government, discounts in agreement with pub­ We are the fifth-largest country in territory in the world, lic auctions, and allocation of the product of formal conver­ with vast known natural resources . . .still unexplored to a sion into investments in the North and Northeast, and into large degree.We are today the sixth-largest in population, structural development projects in the other regions--ex­ although the need for a great national effort to train our human cluding under any circumstances the purchase of existing resources must be recognized.We are the tenth economy in assets; the world in terms of the gross national product, on the order "6) transformation of interest owed for the first three of $385 billion (1988).Industrial manufactures, estimated at years into bonds whose characteristics will depend on ar­ nearly $104 billion (1988) is ninth in the world-and these rangements reached on points 1-5 above" (see Documenta­ have already reached a high degree of diversification, cross­ tion below for further details). sector integration, and reasonable internationalcompetitive­ This proposal of the Superior War College reflects the ness.What is cause for serious concern is the fact that the interests of the Brazilian state and a national consensus to per capita GNP of Brazilians, on the order of $2,700 (1988), resolve the suffocatingforeign debt problem.Upon the solu­ is below the world average, estimated at $3,000 in 1988; tion to this problem depends the future of the new govern­ to this can be added the fact that the inequities of internal ment, which is well aware that a retreat in the debt negotia­ distribution are only superseded by the inequalities that di­ tions will mean total loss of domestic credibility, which in vide the nations of the world between rich and poor.In terms tum could lead to the violent return of hyperinflation and of per capita GNP, Brazil is in 40th place among nations with institutional instability.The hour of truth has arrived in Bra­ more than 1 million inhabitants (1988), and worse still, its zil, and the consensus appears to be growing that it is time growth has come to a virtual standstill in this decade, in for the bankers to get a taste of their own shock therapy. comparison to growth rates of nearly 5% between 1960 and

EIR May 18, 1990 Economics 9 1980 .. .. at the same time affectthe expansion of the internal market Therefore , the need is clearly to rekindle economic and income distribution. growth in the course of this new decade, to levels equivalent The touchstone of this policy of social transformation to those of the 1970s, as the necessary if insufficient condition should be the complete guarantee of equality of opportunity, for development in the economic, social, and political providing for the fulfillment of the individual, enabling one spheres. to freelyattain one's life goals and to see one's effort reward­ ed in an open, pluralist, and united society .... 3.1. The economic dimension There is no solution to short- , medium-, and long-term V. The foreign debt national economic problems that does not imply reviving In the case of the foreign debt, renegotiation with private economic growth. creditors is an imperious necessity, obviously justified in In the short term, a policy of adjusting the economy by view of the debt's many internal ramifications.. .. The means of growth, and not recession, is necessaryto overcome opening of renegotiations should follow a clearpresentation obstacles posed by inflation, by inadequate savings and their to both the official and business world of the United States orientation to non-productive applications, by low levels of and to other great creditors, on the constitution of the debt investment, and by the financial gambling that immobilizes through time, on the effective use of the respective credits, the state indebted internallyand externally. . . . and on the effects those colossal payments have had on the In the medium term (through 1994), Brazil must return internaleconomy . Such an eminently technical presentation to its historic trajectory of growth, on the order of 7% of should be released to the publiC of the creditor nations, which GNP per year (nearly 5% per capita), in view of the need to is otherwise fed two stereotypicalvie ws: that the loans which generate new jobs and to achieve a dynamic redistribution of made up the initial debt were made with the savings of the wealth, keeping pace with growth. lender countries-when in truth they were largely made In the long term (through the year 2000), Brazil needs to through the recirculation of petrodollars-and that the debtor achieve a new economic level, with a doubling of its GNP countries persist in their attitudes on being either bad or non­ (which should surpass $800 billion, in 1988 prices, by the payers on the debt. beginning of the 21st century), and with per capita income on the order of $4,500. Per sector, a new, more advanced phase of industrialization must be reached, while consolidat­ ing Brazil's vocation as a major producer and exporter of food and agriCUltural raw materials . . . and the recovery, expansion, and modernization of energy, transport, and com­ CONSOLTING munications infrastructure. In sum, to consolidate through the year a different productive sector, modern, more ARBORIST 2000 Available to Assist in efficientand competitive. Such a sector would be grounded in the internal market, but capable of dynamic and multiple involvement in the world arena, both on the level of trade The planning and development of relations (with a yearly volume of imports and exports on the wooded sites throughout the continental order of $150 billion), and in financial relations (with a more United States as well as respected, relatively stable currency, increasingly accepted internationally). iI��LThe development of urban and suburban planting areas and 3.2. The social dimension The revival of growth will restore conditions of viability The planning of individual for carrying out a policy of social transformation, oriente� homes. subdivisions or synergistically toward the creation of new jobs (in numbers industrial parks adequate to absorb growth in the economically active popula­ tion and to reduce underemployment) , to improve income distribution, to fightcritical poverty, and to increase the value For further information and availability of national human resources. please contact Peny Crawford III Globally, the objective of such a policy of social transfor­ mation can be expressed in the incorporation, during the Crawford Tree and Landscape Services 8530 West C$lumet Road next decade, of an average 5 million Brazilians per year into Milwaukee, Wisconsin 53224 the consumer market, through absorption of nearly 1 million new jobs a year into the organized economy, which would

10 Economics EIR May 18, 1990 At Asian Development Bank, U.S.-Japan rift is evident by Susan Maitra and Ramtanu Maitra

More than a thousand Asian bankers and financial experts em Europe. This fear was fully expressed in the Pakistani descended on New Delhi May 2-4 to attend the 23rd annual Alternate Governor K.M. Chima's remarks. "There is some meeting of the Asian Development Bank's (ADB) Board of genuine apprehension that political changes in Eastern Eu­ Governors.As it turned out, the temperature inside and out­ rope may induce Westernnations and Japan to divert a larger side the meeting venue was unusually high. Although the share of their resources to Eastern Europe and thus affect the annual gala event was not destined to bear any fruitas such­ tempo of developing regions," Chima stated. "It would be a it is strictly a talk shop affair-the way things did not happen sad development if it happens," he added. revealed a growing rift among the advanced sector donor Though ADB literature tried to allay these fears, ADB countries-and more precisely a kind of undeclared war be­ President Tarumizu warnedin a seminar following the meet­ tween Japan and the United State�ver international eco­ ing of a reduced capital flow from the West except to those nomic policy, and the direction of the ADB in particular. Asian markets which are well developed already. Japan, by far the largest donor to the ADB, made the rift apparent without making it appear confrontational. Japanese Blackmail over replenishing funds Finance Minister Ryutaro Hashimoto, who declined to attend Central among the talking points at the meeting was re­ the important Interim Committee meeting of the IMF in plenishment of the resources of the Asian Development Fund Washington recently, made it a point to be in New Delhi to (ADF), the bank's soft loan facility, and the related issue of assure the ADB member countries that, as he said in his applications from Asia's giants, India and China, for access address to the Board of Governors, "Japan is determined to the softloan window for the firsttime. Prior to the meeting to continue to provide support for the developing member ADB officialsset a target of $10.4 billion for ADF replenish­ countries, including support for the bank itself, in the 199Os." ment, called ADF-6, stating that that amount would meet the The message was unmistakeable: Should the U.S. and other regions' soft loan needs for the three-year period beginning donors choose to strangle the ADB, Japan will still be there. in 1991. ADF-5, due to run its course by the end of this year, Japan's presence was felt all through the proceedings-start­ had only $3.6 billion. ing with the highly visible visit to India by Japanese Prime As anticipated, the U.S. took a hard line on ADF-6. In Minister Toshiki Kaifu which overlapped the opening of the prepared remarks to the meeting and a press conference later, meeting and set the tone. U.S. GovernorGeorge Folsom-as a deputy assistant secre­ Among the developing nations' representatives, the wor­ tary of the treasury, he is considered an insultingly low-level ry was over the shrinkage of development resources in the appointment to the ADB board-rejected outright the $10.4 context of a bleak outlook for world economic revival. As billion figure for ADF-6 and insisted there was no reason to India's Alternate Governor, Finance Secretary Bimal Jalan, begin negotiating the replenishment since ADF-5 would last outlined the predicament in prepared remarksto the meeting, through 1991. real output and volume of trade in both developedand devel­ No one was particularly surprised at this, though partici­ oping countries dropped again during 1989. Developing na­ pants noted that a small rise in ADF-6 would automatically tions face a particularly adverse external situation because rule out consideration of the Indian and Chinese applications. of a slower growth of world trade, rising interest rates in The presumption that the U.S. Congress's hostility to re­ international markets, weakening of primary commodity sumed lending to China would cast a shadow on the size of prices, and slow progress in debt negotiations, he said. At ADF-6, or that Folsom was simply covering up for the U. S. 's the same time, in real terms, net financialflows to developing own budgetary problems, was widespread. countries have declined at an annual rate of more than 9% In fact, however, the U.S. strategy to stall the ADF-6 during the 1980s, to a level half that at the beginning of the negotiations is a quite deliberate piece of blackmail, as Fol­ decade! som made clear when he demanded wide-ranging changes in Of immediate concern is the prospect that financial aid the organization and operation of the ADB as a prelude to otherwise available for developing countries will be re-routed getting down to details on ADF-6. What the U.S. is demand­ as investors scramble to cash in on the realignments in East- ing is a wholesale acceptance of the "conditionalities" policy

ElK May 18, 1990 Economics 11 last year...,is complemented y a rate of ret urn on invest­ ment of 9.39%. Last year'sHr ofit was $435 million. De­ spite the Triple-A rating , Will the measure up? carefully maintainJo ADB is Al)B now runningu p against a nu;bber of problems. Most ba­ sic, perhaps , is the fact that though overall demand for As the premier development financing institution in Asia, money is inCreaSing ' some jamong the more dynamic where nearly half the world's popul n is concentrated, countries have "graduated" out s atio member , of thebank: ' pro­ a large portion in abject poverty, the Asian Development gram-South Korea being t,he latest-and others like Bank faces a great challenge. Whether the bank willm ove Thailand have put a cap on f6reign borrowing. The nar­ effectively to become a significant catalyst to eco'nomic rowingborrower base is increasingly concentratedamong transformation in Asia in the coming periodrem ains to be the most needy and problemrtic nations , such as China seen, but there is no doubt that the benefits for Asia and and the countries of South AS1a. the world economy could be significant. ADB 'stask is,c'ompJicated by its inability to takedeci­ The ADB opened its doors for business in Manila in sions fre e of the donor cou.{tries' political whims. Th e December 1966 and now has a membership of 49. Thirty­ current U .S. campaign to irrlpose the "copditionalities" four of the members are from theA sia-Pacific region , and policy in the context of a vastly expanded "macro-eco­ the rest are the industrial capital -exporting nations of the gomic pro gram le nding" effbrt on the ADB is typical North. The bank's president is deputed fro m theJapanese of the problem. Though the l\DB claims officially that Finance Ministry, a privilege Japan has earned as the internalinsta bility is not conducive to lending to Vietnam, or s t open secret largest donor. \ Cambodia, Afghani tan , is an that it The bank ' s principal functions are to make loans and is the donors' political strongatming that has kept tbese equity investments to promote economic and social ad­ nations off the borro wers' list! vancement of itsd eveloping member countries, to provide Past bank president Fukioija' s decisionto establishthe technical assistance, to promote the investment of public Asian Finance and Investment Corp. last year is another f and private capital or development purposes (e .g., help example. AFIC , with $35 million investment, was de­ set up national development banks), and assist in mem­ signed to meet the demand for credit and assistance from bers' planning and coordination of development policy. the developing countries' pri vate sectors . Though 30% After 23 years , however, the bank remains small in 'owned by ADB , AFIC is independent. It was opposed by terms of its operations , and is often accused of being too some donors on the grounds that it was merely a vehicle conservative. With a total of $29 bil1ion outstanding in tp recycle Japanese surpluses into the region's pri vate loans to 942 projects, it is aboutone- tenth the size of the sector and capture business f., 04 r Japanese firms. Others World Bank:operationall y, but its earningsare aboutone­ argue it is an end-run aroundt be U . S. demand to incorpo­ thirdof theWorld Bank's. The ADS's limitedborro wing rate private sector operationk into the conditionalities from international capital markets-a mere $645 million policy. '

of tying assistance to changes in domestic policy by the ADB . form of macro-economic program loan requirements. The The most important problem, Folsom railed, is the "dis­ ADB is primarily a project and sectoral lending institution, torted economic policies" that prevail in the developing which has concentrated investments in infrastructural devel­ member countries of the ADB , and that undermine the bene­ opment-more than a third of ADB loans are in agriculture ficial effects of the projects ADB undertakes. To make the and agro-industry, nearly 20% are in energy , just over 15% ADB input effective, Folsom insisted, ADB must impose in transport and communications, 10% in development banks "medium-term macro-economic programs" in the develop­ and 7% in water supply and sanitation. Since 1987, the ADB ing member countries that will lead to the promotion of mar­ approved a total of $1 billion in 12 program loans to different ket economies. "The bank: should address with borrowing members , a small fraction of total lending during the same countries , as part of its dialogue efforts , needed reforms in period. their industrial and financial sectors which will set the stage In developing nations these activities invariably involve for private sector growth," Folsom said. the public sector; moreover, ADB officials point out, the ADB charter does not have any provision for imposing policy Collision course over conditionalities conditions on loans. It is apparent that the U. S. and the ADB are on a collision Not surprisingly, ADB ' s skepticism of conditionalities course over the issue of imposing "conditionalities" in the policy is shared by Japanese officials. One has only to talk

12 Economics EIR May 18, 1990 brieflywith Japanese businessmen in India to appreciate their sensitivity to the many counterproductive features of every­ day economic practice, but they are equally aware that these things are not changed abstractly or by fiat. As Finance Min­ Asia e4periencing ister Hashimoto said, the need is "to promote policy dialogue decliniJ}g gro�h and to enhance country-specific development strategies so «';;, that the bank's lending and investment activities can truly be in line with the member countries' development require­ ments." ADB President Kimimasa Tarumizu, formerly a senior adviser to Japan's Finance Ministry, was considl!rably more blunt in an interview with the Indian daily The Economic Times, when he complained that some donor countries insist­ ed on taking "a totally macro-economic approach." They are , perhaps , not satisfied , Tarumizu said. "That is wrong , you know ," he continued. "The macro-economic approach is not always appropriate. Japan, for instance, is still on the way to 100% liberalization. So the success of Japan cannot be explained by a totally macro-economic approach. Perhaps you are thinking of the U.S. Perhaps they are sticking to the macro approach. I think the development thrust of the developing member countries has to have another approach." Speaking for India, Bimal Jalan told the meeting that while the bank should encourage more rapid disbursement program lending, "we are concernedabout the attachment of onerous conditionalities accompanying this form of assis­ tance." Conditionalities "seriously erode the benefit of the assistance," Jalan said. "Usually, the imposition of these conditionalities vitiates the principles of equity and frustrates the very objective of growth with social justice." While Japan and the U.S. openly differed on the ADF-6 and conditionalities, they apparently agreed that the time was not right to restart lending to China, which was cut off following the massacre in Tiananmen Square last June. A 16-man delegation from the P.R.C, headed by ADB Gover­ nor and head of the People's Bank of China Li Guixian , was complemented by a40-strong unofficial business delegation. While George Folsom did not mention China, Hashimoto devoted a paragraph to the subject. "Japan, as a country that a resumption of normal lending to China. is situated in Asia and has a long history of mutual relations With the politicization of the ADB at an advanced stage, with the P.R.C., very much hopes that efforts on both sides it is to be seen whether the Soviet Union, now a favorite will repair China's relations with the other countries and the among the donor nations, will be allowed membership any­ multilateral institutions as soon as possible," the Japanese time soon. "If not the whole Soviet Union, then perhaps some finance minister stated. Japan-watchers pointed not to the of the Asian republics could apply for the ADB member­ content, but to the mere presence of that paragraph as sig­ ship," said Viacheslav Zakharov , deputy chairman of the nificant. Soviet State Bank, who led a four-man delegation as observ­ ADB officials say the bank is eager to resume lending to ors . Zakharov' s argument is that if Estonia and Lithuania can China on economic grounds. But ADB Vice President Stan­ have missions at the independent United Nations, why can't ley Katz told reporters the bank couldn't make an indepen­ the Asian republics have membership in the ADB indepen­ dent judgment on the issue, apart that is, from the Group of dent of the Soviet Union? Seven donor countries' decision to restrict lending to China Bank officials say the proposal cannot be considered seri­ to "basic human neds," but will be watching the World Bank ous, because "it would complicate matters for the bank." on the issue. For their part , World Bank officials at the meet­ But in the meantime, the high-level Soviet delegation took ing confirmed that they would seek approval on May 29 for advantage of the opportunity to participate in informal dis-

EIR May 18, 1990 Economics 13 cussions on the new European Bank for Reconstruction and Development. C urrency astes Environmentalism rears its head The dollar in deutschemarks Environment was inevitably another talking point around New York late afternoonfixing the meeting. ADB has promised to take environmental con­ siderations into account more systematically, and a number 1.00 of non-government organizations were present to underline the point. Chip Fay, a rabid environmentalist fromthe Philip­ 1.90 pines, demanded that the ADB conduct a complete review and redesign of an ongoing project in the Philippines before 1.80 committing the second tranche of funding due in July. ADB 1.70 .-- Governor for France, Denis Samuel-Lajeunesse, who pro­ .... posed an SDR 1 billion program to explore and implement 1.60 remedies for the global environment under the World Bank 31ll 3118 4/4 4111 4/18 4115 51l 5/9 and U.N., said France was prepared to commit 10-15% of the money. U.K. Governor Lynda Chalker, championing The dollar in yen New York late afternoon fixing environmental causes, warned against "talking about money rather than developing a means of delivering the technolo­ 160 gy ," while the U. S. called for the environmental division to - -rIV" be upgraded. 150 Interestingly, in a preemptive move, Indonesia is actively discussing its commitment to protecting the tropicalrain for­ 140 ests. The Indonesians are leery of being tossed into the same handbasket as Brazil and other countries which have borne 130 the brunt of environmentalist criticism in recent years, and 120 are anxious to stop passage of a bill in the U.S. Congress 3/11 3118 414 4/11 4118 4115 5/1 5/9 detrimental to the tropical hardwood industry. Their counter­ offensive received considerable publicity around the ADB The British pound in dollars meeting. New York late afternoon fixing

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14 Economics EIR May 18, 1990 pollution, is de jure prohibited. As Barnhart explained, this would mean that a town Highways crippled by with an old bridge that is in disrepair would not receive the funds for improvement, if fixing it would result in CleanAir Act lunacy more vehicles using the roadway. Every transportation study conducted indicates that America's highway traffic will continue to grow substantially by Marsha Freeman in the future , and that without major new investments, con­ gestion will increase. Studies have also shown that the num­ At a press conference on May 8 in Washington, D.C. hosted ber of automobile collisions increases as the square of traffic by the Road Information Program, three former heads of the density. Thus, this legislated prohibition against expanding Federal Highway Administration-two Democrats and one and improving highways will necessarily increase the car­ Republican-stated that the legislation that has been passed nage on the roads. by the Senate to amend the 1970 Clean Air Act would do Absurdly, the increased congestion created by the Clean "serious damage to the fiscal basis" of the highway system. Air Act amendments will also increase pollution, as cars The companion legislation of amendments to the act are sit idle for hours on congested roads, rather than moving under consideration in the House, and the former administra­ efficiently on expanded highway facilities. tors were astonished to learnthat congressional stafferswork­ ing on the bill were unaware of the effect it could have on The ultimate weapon: sanctions the nation's transportation systems. Under the currently formulated Clean Air Act amend­ The amendments would give the Environmental Protec­ ments, the EPA will wield the ultimate enforcement weapon: tion Agency (EPA) veto power over state and local highway the cut-off of Highway Trust Fund monies to cities and re­ projects, along with the punitive power to withhold federal gions judged to be in "non-attainment" of clean air standards. monies from the Highway Trust Fund which are supposed to According to maps provided by the American Automobile be spent on desperately needed programs. Association at the press conference, the areas of pollution In addition, the mandated use of "alternate" non-petro­ non-attainment are exactly what you would expect: every leum fuels will slash the money going into the Highway Trust major urban area of the United States. Fund, by exempting gasohol from 6¢ of the federal gasoline The Highway Trust Fund's financialresources have been tax of 9¢ per gallon. The approximately $13 billion per year under attack for many years, as budget-balancing fanatics in collected in the Highway Trust Fund could be cut by as much Washington have withheld funds from approved state high­ as $2 billion. way projects to make it appear that there was more money in The former administrators pointed out that automobile the federal budget-and thus, a lower deficit. As the press emissions have actually been lowered 96% over the past conference was taking place, the Subcommittee on Investiga­ decade, and that the requirement that 10% of the nation's tions and Oversight of the House Public Works Committee highway fuel be gasohol will not perceptibly "clean up" the was holding hearings on whether there should be changes in air. the way the Highway Trust Fund resources are administered. At the press conference, former FHA administrator Deterioration of highway safety Barnhart warned that if the amendments become law, High­ The amendments as currently proposed change the pur­ way Trust Funds withheld for state highway projects could be pose of transportation projects, from the provision of im­ diverted fromtransportation to "solving pollution problems." proved safety and mobility, to the attainment of clean air. For example, these funds "mightbe used to financewater or Every other purpose is subsumed by this EPA-enforced crite­ sewer improvements or to install scrubbers on smokestacks. " rion. Highway safety in the U.S. is no minor issue: Since He remarked that the American people will have no "trust" 1970, over 1 million Americans have been killed on the na­ in a Trust Fund which is paid for by their gasoline taxes, and tion's highways and roads. is used for other purposes. At the press conference, Ray Barnhart, FHA adminis­ The idea of spending yet less money on transport is almost trator during the two Reagan administrations, reported that inconceivable. The actual spending, according to the former the Senate Clean Air amendments say that "safety hazards, administrators, should be in the range of $100billion per caused solely or primarily by congestion or the use of a year, compared to the approximately $68 billion being spent structure or facility beyond its design capacity should be today. removed by reducing, controlling, or limiting vehicle Anyone who drives a car is aware of the safety and sanity access . . . rather than by expanding capacity." Thus, any problems on our roads, highways, and bridges. If the EPA project that would allow more vehicles to use the existing is given the power to run transport policy for the nation, these inadequate infrastructure, thereby supposedly increasing problems will only get worse.

ElK May 18, 1990 Economics 15 Memorial Day recess. Business and industry had been count­ ing on President Bush to veto any bill that was too extreme, Smoke billows from but lately they have come to a realization that he may not. They have, therefore, concentrated their fire on some of the clean air debate most outrageous aspects of the bill. Amendments added to the Senate bill by Senators Thom­ as Daschle (D-S.D.), Tom Harkin (D-Iowa), and Robert by Rogelio A. Maduro Dole (R-Kans.) require, in effect, the use of highly subsi­ dized ethanol to be used in motor vehicles sold in at least After months of complacency in the face of the devastating nine cities. This would affect 25% of the nation's drivers, amendments to the Clean Air Act proposed by President costing consumers $25-50 billicm. Rep . Bill Richardson (D­ George Bush a year ago and about to become law, American N.M.) has introduced a similaramendment in the House that businesses are finally waking up and starting a campaign to extends this requirement to 18 other cities, while Rep . Henry tell the truth about the consequences of the bill. In advertise­ Waxman (D-Calif.) has introduced an amendment mandat­ ments run in major newspapers and radio stations, the Clean ing the production of "alternative fuel" vehicles. The most Air Working Group and the American Petroleum Institute astonishing fact here is that these amendments won't provide warnedof the loss of 750 ,000jobs and the multibillion-dollar any "clean air," since burningethanol is much more polluting swindle behind subsidies for "alternative fuels." Even the than gasoline! news media seem to bewaking up. On May 11, the Washing­ ton Times ran a headline warning, "Clean Air Act is Gorba­ Cartels will rake it in chev's secret weapon." The catch is that there are hundreds of billions of dollars Under the bill, industrial, transportation, and business' to be made in this swindle, a fact duly noted in an irate policy will be consolidated in the hands of William Reilly, editorial that appeared on the May 2 Wall Street Journal. the head of the Environmental Protection Agency, who will "The main beneficiaryof this windfall will be Archer Daniels have the power to jail any individual or shut down any busi­ Midland, Inc ., which accounts for 75% of U. S. ethanol pro­ ness for "environmental violations." duction," the paper charges, adding that the grain cartel has But that is not the end of it, according to syndicated been giving "generous contributions" to politicians in Wash­ columnist Warren Brookes. In a column published May 9, ington, and "ADM chief executive Dwayne Andreas is a Brookes says there is a firestorm now erupting in the White major contributor to Senator Dole and ADM's foundation House over the initial draft of William Reilly's new "Five­ has given $160,000 to his Dole Foundation." The Journal Year Plan" for "Pollution Prevention." One top Bush official continues, " 'The piggishness of ADM has caused a major told Brookes, "You think the Clean Air Act is bad, wait until political problem for the whole com industry,' says John you see how far Reilly wants to go." Ford of the American Com Growers Association, a group Brookes says that "the basic premise of this agenda is that decries Mr. Andreas 's influence in Washington. 'The thatAmerican industry must not merely clean up its messes com industry, the politics of it, is controlled by one man, as it goes along, it must avoid even producing any waste in and Bob Dole is his go-fer on the Hill.' " the first place. As Mr. Reilly suggested archly, waste is Since the Carter administration approvedthe use of etha­ merely 'misused resource . 'In the future,the chiefs of Ameri­ nol in gasoline, as gasohol, producers have received a wind­ can business, big and small, will be required to make their fall of $4.6 billion in subsidies from the government. Most omelets without breaking any eggs." of this has ended up in the hands of Archer Daniels Midland, Although that may be Reilly's agenda, Brookes warns, Inc ., whose CEO Dwayne Andreas is one of the best friends "That approach is already implicit in the largely ignored that Mikhail Gorbachov has in theWest, and one of the main 'Permitting and Enforcement' titles of the Clean Air Act promoters of the East-West trade policy embraced by the which give the EPA a life-and-death, upstream chokehold Bush administration. over all but the tiniest businesses and every new idea product The American Petroleum Institute, which is leading the or process. If these titles become law as passed by the Senate charge against ethanol, put out ads in all major newspapers with Mr. Reilly's and President Bush's approval, they will blasting "Government Gas," while Sierra Research, Inc ., an for the firsttime requireas many as 150,000 American busi­ independent environmental research firm, released a study nesses from heavy manufacturing to small print shops and on May 8 warning that "statutqry provisions that encourage dry cleaners to secure specificEPA permits for every single­ or require the use of ethanol-gasoline blends in ozone (smog) point source of one or more of 191 'air pollutants' if they non-attainment areas will cause adverse air quality impacts . emit more than 2.5 to 7 pounds per hour." In combination with the well-established cost penalty and As it stands right now, debate is raging on the House fuel economy loss caused by ethanol-gasoline blends, motor­ version of the bill, which is expected to pass before the ists would end up paying more for dirtier air. "

16 Economics EIR May 18, 1990 NORBERT BRAININ first violinist of the legendary Amadeus Quartet

IN CONCERT AT C-256

GUENTER LUDWIG, pianist

Mozart) Sonata in Eb major) I( V 481 Brahms) Sonata in A major) Gp. 100 Beethoven) Sonata in G major) Gp. 96

Norbert Brainin, one of Europe's greatest violinists, who led the Amadeus Quartet fo r fo ur decades, is coming to America to demonstrate the importance of returning to the tuning used by the classical composers fo r their music-a middle C set at 256 Hz. C-256 was known throughout the last century as the "scientific tuning," and was mandated in Italy in 1884 by a decree inspired by the great Giuseppe Verdi. To show that the old, lower tuning is just as crucial fo r bringing out the beauty of fine instruments as fo r the human voice, Dr. Brainin will demonstrate the Saraband and Double from J .S. Bach's FirstPartita for Violin Solo on his Stradivarius violin, at today's arbitrary, high International Standard Pitch, A-440,

and then at C-256 (which gives an A of about 432 Hz.). • The Schiller Institute and Lubo Opera Company sponsored the first modem American performance of Beethoven's opera Fidelio at the "Verdi tuning" at Lincoln Center in New York in January 1990.

Wednesday, June 6 8:30 P.M. Lisner Auditorium The George Washington University Washington, D. C.

General admission $15 HISTORICCOMPACT DISC AVAILABLE ! Students, seniors $5 Norbert Brainin and Guenter Ludwig First Sonata Demonstration this century at C-256 Hz. Sponsored by Schiller Institute and Lubo Opera Company December 12, 1988 Munich, West Germany Featuring J .S. Bach: Adagio, Sonata # 1 in G minor in cooperation with The George Washington University demonstrated at both C-256 and A-440 For tickets call TELETRON: 800-543-3041 Plus: Beethoven Op. 30 no. 2 & Brahms Op. 105 Available from Ben Franklin Books (703) 777-3661 For more information: 800-543-1462 Business Briefs

Health and vegetables, wheat, and spices. Thedeci­ middle-cl�sAmerican famili es, according to sion on poultry has been under study by the Citizen A

The useofirradiationto controlsalmonella and other bacteria in fresh and frozen poultry was Income World Markets approved by the Food and Drug Administra­ tion on May 1. It is estimated that 30 to 60%of Health care costs wiped U.S. COurt upholds U.S. poultry is infected with salmonella and that as many as 4 million people suffer from out middle-class gains international jurisdiction salmonella poisoning a year. The FDA has already approved low-level U.S. health carecosts arenow so high that they In a display ofjudicial arrogance, a u.s. Court irradiation for pork (to control trichina) , fruits have wiped out most of the income gains of of Appeals upheld on April 18 a two-year-old

18 Economics EIR May 18, 1990 Bril1ly

• THE AIDS EPIDEMIC is the worst in the world in New York City , according to the May 2 New York lower court ruling which declaredthat the Brit­ Botany Post which cited a study conducted ish-based futures marleet for North Brent Sea by the U. S. Centers for Disease Con­ crudeoil is a U.S. marleet because U. S. com­ Lundnescent broccoli trol . "The New York City-New Jer­ panies do business there. sey rate is not only the highest in the The lower courtruling was considered"so used to curb black rot country, it is also higher than report­ absurd"that the market ignored it, certain that ed in Africa." it would beoverturned on appeal; when it was The U.S. Departmentof Agriculturehas given not, the May 3 Financial Times reported, "the the go-ahead for scientificfield tests in Macon, • MEDICAL emergency calls in­ maIket went into shock ." Shell cut offall con­ Georgia, of luminescent broccoli. Broccoli creased 48% between 1984 and 1989 tact with American traders , and Exxon quit the and cabbage, will be the subject of a proj ect in Houston, Texas , the Houston Post marketentirely on the advice of its lawyers . run by botanists from Aubum University to reported May 7, taxing the capability Under the same insane logic, the Tokyo curb "black rot." of the system. Fire department offi­ Nikkei stock market could be declared U.S.a Scientists will deliberatelyinf ecttheplants cials estimate that 30% of its EMS market, as could any of the world's financial with black rot bacteria that have received a dollars are used in the care of illness Fi­ and commodities markets, or even, as the gene containing a code for bioluminescence or injury related to drug abuse. nancial Times noted, "a Middle Eastern rug lifted from a marine organism (Vibrio fi­ bazaar." scher!), which, it is thought, enables fish to • THE PENSION BenefitGuaran­ "see ." The luminescent black rot bacteria will ty Corp., a government agency glow in the diseased plants, allowing scientists which is liable for defaults on pension to traceits progress without having to killthe obligations it insures, said there is a Foreign Aid plants . $14 billion shortfall of payments into Curing black rot, a major disease of the the fund for just the 50 largest plans Bangladesh squeezed cabbage and broccoli family, would result in which include General Motors, RJR higher yields. Some scientists are proposing Nabisco, and United Brands. by drop in assistance that fieldtest plots bedug in Lafayette Parle so that a "thousand pointsof light" will be visible • PRODUCTIVITY fell 1 % in the Bangladesh received an aid pledge of only from the White House. first quarter, according to the Depart­ $1.8 billion, less than its requestfor $2.5 bil­ ment of Labor, despite a 4. 1 % in­ lion, at the mid-April Paris aid consortium crease in manufacturing productivity meeting . Last year's aid commitment to Ban­ resulting from one time factors: Re­ gladesh was $1.78 billion against a pledge of covery fromthe Boeing strike and the $2.5 billion. Rail Transport Lorna Prieta earthquake . Bangladesh Finance and Planning Minis­ ter,Gen. M.A. Munin (ret.) said that no "polit­ France embarks on • THE HUNGARIAN economy ical conditionalities" wereimposed by the do­ investment program "moved into sharp recession" in the nors, but acknowledged that a mid-term re­ firstquarter of 1990 with the collapse view of economic performance would be re­ of exports to the Soviet Union and the quired for the first time. Michel Delebarre, the Frenchminister of pub­ government's tight-money policy, President Ershad's regime's alleged eco­ lic transportation, announced in Strasbourg in the Financial Times reported May 5. nomic mismanagement has become a major early May, a 100year program for building Industrial production of state-owned point among the donors . The "swelling 3,400 kilometers of track forthe FrenchTOV enterprises fell 9.7%, Deputy Minis­ growth" of expenditures, mostly unproduc­ high-speedtrain. Thirteenroutes for theTOV ter of industry Henrik Aouth said. tive, the reduced level of development or in­ inside France areplanned. vestment operations-much foreign aid is Delebarresaid thatthe entirepro ject, to be • ROMANIA should not follow held up "in the pipeline" for want of domestic presented in detail before the summerrecess, the policies of Thatcher and Jeffrey matching funds-and the "high consumption will cost 160 billion francs. The Paris-Stras­ Sachs, but those of the "Asian Ti­ spree" of the government have been singled bourg route,with a branch leading to the Swiss gers," wrote Silviu Brucan, former out for attack . border via Colmar and Mulhouse, will cost member of the Romanian National Ina move attributed to the country's deep­ FF28 billion and is scheduledto becompleted Front, in the May 4 International ening financial and economic crisis, the fi­ by 1997 . The other routes will be completed Herald Tribune. Sachs's policies nance and planning ministersresigned sudden­ by the year 2000. have so far produced "food riots" and ly in March. The country's growth rate was New locomotive model has also recently a minimum wage of $22 a month, 2.09% in 1988-89, compared t06.7% in 1972- been developedthat canbe run on all fourexist­ "not even a tenth of the average work­ 73, a downturnattributed at least in part to the ing electriccurrents, increasing theattractive­ er's food and rent costs." terrible floods of 1988-89. ness of the TOV for use outside of France.

EIR May 18, 1990 Economics 19 �IIillScience & Technology

U .8 . couldlea pfrog Europe, Japan in maglevte chnology Although aJoolish decision cost the U.S. its early lead, a policy shift now could revolutionize our cripp led transportation by the 21 st century. MarshaFree man reports.

Over the next fiveyears , u.s. scientists, engineers and trans­ for export around the tum of the century. The Japanese have port designers could be putting on line a demonstration proto­ already conducted market studies, indicating the potential typeof America's first advancedmagnetically levitated trans­ for maglev studies in South America, and developing na­ port system. The science and engineering has been under tions, such as Indonesia. development for 20 years, but in the United States it has been It may seem, at first glance, that the only way to have under a funding embargo since 1975. In that year, the High­ maglev in the U . S. in the near future , is to take up the German Speed Ground Transportation Act, passed a decade earlier, offer to export their Transrapid system. But importing mag­ expired. The federal government decided that the cost of lev systems would mean the U .S. would create neither this refurbishing the collapsed conventional rail lines, such as the advanced transport industry, nor the technologies, such as bankrupt Penn Central, would soak up all the resources it superconductivity, that will have multiple applications could put into surface transportation. A foolish, short-sighted throughout the rest of industry. Moreover, the engineering decision was made, which cost the U.S. its early lead in and economic considerations used in the European and Japa­ advanced magnetic levitation technology. nese designs do not necessarily apply to the transport require­ Over the same decade, Japanese and West German gov­ ments in the United States. Both Europe and Japan have, for ernmentand industry interests spent about $1 billion each in example, much higher primary energy prices and greater developing this transport technology. A handful of different population-density than the United States. Their systems are approaches to maglev has been under active development: optimized based on criteria which may not be as important attractive maglev systems with conventional copper coil here. Both nations also have functioning conventional and magnets in both Germany and Japan, and an experimental high-speed wheel-on-rail networks, which do not exist in the superconducting system in Japan. The West German Trans­ United States. Similarly, the distance between major popula­ rapid technology has been offered for sale to the U.S. by tion centers is much less, making short-distance air travel the German industry consortium which developed it, and in less important, and governmentshave preserved good, func­ Pittsburgh, Florida, and Las Vegas, governmentand industry tioning rail systems that are economically attractive to pas­ consortia are considering the offer. The Japanese have ex­ sengers. pressed interest in funding such a proposal, though they Finally, the West German Transrapid technology, which would not be exporting their own maglev system, which is uses less technologically advanced attractive maglev, does less developed than the German. not use superconducting magnets and has less operating flex­ Helping to finance the export to the U.S. of the German ibility and higher capital cost. The use of maglev technology technology, however, would create a market for this future will not be commercially introduced into the German trans­ ·· transport system, which the Japanese also plan to have ready port system on an operational basis until the end of this

20 Science & Technology EIR May 18, 1990 oped the idea for advanced superconducting repulsive mag­ lev, that the only thing stopping the full-scale demonstration of the technology is the political and financial will to do it. Dr. Gordon Danby, who, with Dr. James Powell, holds the original advanced maglev patent granted in the 1960s , stated at congressional hearings on March 21 , "The technoio­ gy has been in hand for years . There are no technical barriers to building maglev. . . . What is required is a third generation design, and leaderhip to pull this together."

Worldwide status of maglev The Japanese government and industry have pursued the development of both attractive, or electromagnetic system (EMS), maglev, using conventional magnets for levitation and propulsion, and the more advanced repulsive, or electro­ dynamic system (EDS) designs, which use superconducting magnets. The less advanced attractive system, called the HSST, has been under development by Japan Airlines. It is considered an intermediate-speed system, limited to about 180 miles per hour because it picks up propulsion power from the guideway. It will be superseded by the more advanced technology. The goal of Japanese maglev deployment is to bring all of the major cities within a one-day roundtrip of each other. Routes are being designed which are even geographically difficult in order to open up interior regions of the country

The Japanese MLU-OOJ is equipped with superconducting that have limited surface transport access to economic devel­ magnets on the vehicle and on-board cooling units. On the sides of opment. For example, the Tokyo to Osaka system, which is the guideway are coils fo r propulsion and guidance. projected to begin testing in 1995 for full commercial opera­ tion by the year 2001, could have been built along the shore, near the right-of-way established for the Bullet train. Instead, decade. There is, therefore , still a window of opportunity an expensive, mountainous route was chosen, which will for the U.S. to "leapfrog" ahead into the second or third require that 60% of the 300 miles of maglev guideway go generation of maglev systems, using the most advanced su­ through tunnels . perconducting, power-handling and -conditioning, and other The system is expected to cost more than $21 billion, technologies. one-third of which will be paid for by the governmentlargely For the first timesince the mid 1970s, the fiscalyear 1990 through long-term debt. It is projected to carry 100,000 peo­ budget includes a small amount of funding for a look at ple per day . The Japanese would like to avoid the burgeoning national maglev requirements. The Army Corps of Engineers of inefficient and petroleum-wasteful, short-haul air traffic is spending $1 million this year, to begin to evaluate system the U.S. experienced, as their transport needs grow . A num­ designs, and the Federal Railroad Administration's (FRA) ber of years before that 300-mile system is completed, how­ $500,000 is being used for initial safety studies. ever, a smaller 30-mile advanced maglev commercial dem­ For FY91, the Department of Transportation has request­ onstration project will be put into operation from the airport ed $6.2 million for the FRA maglev effort, and $3.5 million near the city of Sapporo, which is the capital of Hokkaido. has been sought for the Army Corps of Engineers, but only The system is projected to cost about $3 billion. In 1994 , this to study maglev requirements and technology status, and to will become the world's first commercial superconducting begin safety and other institutional examinations of all mag­ maglev system. lev technology . Interestingly, the current renewed interest in The Japanese work in maglev started in the 1960s , maglev led to the requirement in the Senate amendments to soon after Drs. Powell and Danby patented their concept. the Clean Air Act, that within six months of passage of the In 1977, the four-mile-long Miyazaki test track opened to law, an environmental assessment of maglev be done. test the ML series of vehicles. Two years later, the ML- At a Government/IndustryMaglev Forum in Washington 500 set the world's speed record for maglev at 321 miles on May 2-3, it was clear from the presentations , and discus­ per hour. In 1980, the MLU-OO I began tests, with a new sions with the scientists and engineers who created and devel- and improved design for the guideway. Future testing

EIR May 18, 1990 Science & Technology 21 must include testing prototype vehicles at full speed, the It is not too much faster th� the French Train It Grande passage of vehicles through tunnels to study aerodynamic Vitesse (TGV) , the German Inter-City Express (ICE), or effects, the wind effects of two vehicles passing each other high-speed rail lines in �peration. other at high speeds, and the development and testing of In 1999, Transrapid plans to have an operational line over track-switching devices. the 90-mile route from Hamburg to Hanover. The system is It has been pointed out that the fact that electricity costs to cost $1.7 billion. are in Japan are three times those in the United States has led In addition to bidding on regional maglev transport proj ­ to design choices that minimize power requirements, but ects proposed in the U. S., the Germans have also studied the increase capital costs. For instance, shorter block lengths for potential for this transport technology in Saudi Arabia, as the electrical activation of the guideway for propulsion; using well as a line connecting Newcastle-Sydney-Canberra, in discrete coils in the guideway rather than continuous conduc­ Australia. Table 1 compares the major characteristics of the tors strips; and using non-magnetic, low-conductivity steel high-speed wheel-on-rail and magnetic levitation techno­ alloy reinforcing rods, all reduce electricity consumption, logies. but increase the construction and materials costs of the guideway. u.s. transport in crisis In West Germany, the major effort has gone into the In the U.S. there is no test track, no maglev vehicle operational development of the less advanced, and nearer­ carrying passengers, nor are there firm or funded plans for term , attractive, non-superconducting maglev technology, maglev development. But there is a catastrophic collapse of though repulsive maglev research was initially also done in transport infrastructure, and a recognition that something the 1970s. The attractive system produces only a small, 3/8 must finallybe done. inch gap between the vehicle and the guideway, which re­ At the maglev conference May 2-3, Federal Railway Ad­ quires that it be maintained in nearly perfect condition, and ministrator Gilbert Carmichael reported that in the 1920s, thereby eliminates the inherent low-maintenance advantage one could travel from Chic�go to St. Louis by rail at an of non-wheel-on-rail surface transport. In 1974, Transrapid average speed of 120 miles I'tirhour . Today, no matter what was formed by Krauss-Maffei and the aerospace giant Mes­ serschmitt-BOlkow-Blohm. Two years later, the lO-ton Ko­ met vehicle was tested on a one-mile guideway, and soon

after, the steel firm Thyssen joined the consortium. The ma­ FIGURE 1 jor test facility, which has carried passengers in demonstra­ Intercity commercial passenger travel is tion runs since 1982, is the Emsland Test Track. The vehicle projected to grow annually 4.1% to 2000 under development is the Magnetbahn Transrapid. Million trips The limits of the attractive technology have confinedthe 1 ,600 -.------::a system to speeds of about 250 miles per hour, and it is seen as

suited to lower speed applications than the superconducting 1,400 technology, and therefore , not competitive with air transport. 1,200

1,000 TABLE 1 Alternative rail technologies (operational 800

above 125 mph) 600

400 Cruising Cost Rail speed ($/ml) Applicability 200 -.-... Bus

.. ..�-- .u-- --..�-- =4 High-speed steel wheel on steel rail 0 4-----�� �������-- � Japan-Shinkansen Bullet train 150 $21 mn Intercity 1970 1980 1990 2000 2010 2020 2030 France-Traina Grande Vitesse 185 $10 mn Intercity Sweden-(Asea Brown Boveri) 150 $10 mn Intercity Source: Argonne National Laboratory Maglev: attractive force (electromagnetic system (EMS) "The percentage of adults who have flownincreased from49" 10in 1972, to 72% Germany-Maneto-Bahn 40 N/A Commuters in 1986. Germany-Transrapid 250 $12 mn Intercity Japan-HSST 30 N/A Commuters Since the mid-1970s, the growth of passenger transport has Maglev: repulsive force-electrodynamic system (EDS) been overwhelmingly in the air mode . Without a new transport Japan-Railway Technical technology to relieve some of that burden, the nation's air Research Inst. 250 $16 mn Intercity transport system will become increasingly congested.

22 Science & Technology EIR May 18, 1990 FIGURE 2 Conceptual plan for connecting hub airportswith maglev systems

San Francisco­ Oakland I I-. 1-� - -- - - ' -F�; :::: I oklahO' City .....- -f--.. Phoeni"; I ��. The most heavily ! �'-"""""'" f traveled air routes, with '-" " 1 _-., numerous short-distance "",- .Jr\ J flights, have been Austin proposed as the first leg _ Early phases "--"���!'<.'I of a national maglev ''..,,/'1 __ Subsequent phases sa�ton'o network. ( y� Source: Argonne National Laboratory. \. .� mode of transport you use, the average speed is 45 miles per mercial airplane pilots has experienced a "near miss" midair hour along the same corridor. The federal government may collision, as a function of overloading in urban areas. just be awakening to the crisis in American transportation, Although the federal governmentbowed out of any high­ but states and localities have known it was coming since the speed rail development 15 years ago, throughout the 1980s, 1960s. It is currently expected that by the year 2020, 1-95 in cities, states, and regions started to consider options for their Florida would have to have 44 lanes, to accommodate the future transport needs. In 1983 the High-Speed Rail Associa­ projected automobile traffic between Miami and Ft. Lauder­ tion was established for the purpose of promoting new modes dale, if alternate transport is not provided. and new industries of high-speed rail passenger service, in Figure 1 illustrates the profile of American passenger excess of 125 miles per hour. It joined together manufactur­ transport. Since 1970, the millions of trip-miles by air has ing firms, engineering consultants, legal and financial firms, grown at a steady rate . Because no airports have been built state officials, labor representatives, and academia for this for 15 years, this has led to the phenomenon that passengers goal. At the same time, many states and regions were examin­ spend more time in airports than in flightfor their short-haul ing their future options. Presently the most active planning trips . Air delays cost carriers and passengers more than $5 is in Florida, Nevada, and Pennsylvania, with growing inter­ billion annually. Because rail and bus service are not a major est in the Northeast corridor between Boston and Washing­ portion of passenger transport, auto transport, especially for ton, the industrial Midwest cities, and Texas. trips up to 100 miles, and air transport primarily for distances In 1984 the Florida state legislature passed the High­ over 100 miles are the projected areas of growth and aggra­ Speed Rail Act, which authorized the study of a 3OO-mile vated congestion. high-speed rail system to connect Miami, Orlando, and Tam­ At the maglev conference, FRA Administrator Carmi­ pa, and conventional high-speed rail is under consideration. chael continually stressed that the U.S. must have a safe Four years later, the Magnetic Levitation Demonstration transport system. Over 1 million people have died on this Project Act was passed, without any specific location indi­ nation's highways since 1970. Studies have shown that the cated. Under consideration for the 17-mile route from the frequency of highway collisions tends to go up as the square Orlando airport to the vicinity of Disney World is the German of the traffic density. Moreover, though it is not generally Transrapid system, with financial support from the Japanese, reported, according to interviews, one out of every fivecom- through a consortium called Maglev Transit, Inc.

EIR May 18, 1990 Science & Technology 23 In another indication of the tum of this nation's transport ers of this plan hope that Japanese financing would be avail­ toward servicing entertainment centers, a second region ac­ able. Eventually the system would connect the major urban tively planning to meet future transport needs is on the route centers of Pittsburgh, Philadelphia, and the state capital at between Los Angeles and Las Vegas. The plan is to operate a Harrisburg, but would start with a smaller demonstration high-speed surface transport system in this corridor by about project. It has been projected that 4-12 million riders per year 1998. The approximately 250-mile system must be built at no would be attracted to this novel system. expense to the state of Californiaand bids are due in July. As The route most in need of maglev technology, however, of now, it is expected that there will be proposals representing is the Northeast corridor, which is heavily congested. No theFrench TGV rail system, and also the German Transrapid new airline flightscan be added in any of the major airports . maglev. Projections are that the TGV would cost about $2 Maglev USA, formed recently by General Electric, Westing­ billion, and the maglev about $3.5 billion. The project re­ house, the Grumman Corp., CSX, Rust International, and quires congressional authorization for dual use of the inter­ Sverdrup, is promoting the construction of a Baltimore-to­ state right-of-way, which has been raised in Washington. Washington maglev line. In Pennsylvania, there has been an aggressive effort to Clearly, this should be the first leg of the full Boston-to­ revitalize transport and the economic viability of the region Washington system. Spokesmen for the project have used for more than a decade. Recently, a study led by Carnegie the example of the Washington-to-Baltimore telegraph line Mellon University has been completed, proposing that the in the last century, which stimulated the development of German Transrapid system be imported, but be licensed for telecommunications nationwide, as the role the corridor can production in unused factories in the Pittsburgh area. Promot- play in maglev development. Over the 1970s, as the situation in the Northeast corridor worsened, the federal government poured more than $1 bil­ lion into upgrading the deteriorated Amtrak rail line, explicit­ ly as a tradeoffto simultaneously being able to use the corri­ FIGURE 3 dor as a showcase of the most advanced U. S. transport tech­ Effectof travel time on ridership nology. Detroit-Chicago corridor It has been proposed by Maglev USA and the experts Daily riders who have studied this region for Sen. Daniel Moynihan (D­ (thousands) N. Y.) and the Senate Committee on Environment and Public 16 �------,Works, that freight be included in the service provided by maglev, particularly along this corridor. It is an important 14 freight route, unlike the entertainment orientation of many of the other proposed routes. Dr. Gordon Danby reports that 12 , mUltipurpose maglev vehicles can be designed to carry both , passengers and freight. Containerized freight, which is car­ 10 , , ried by airplanes and trucks today, could be moved on mag­ , lev. A fully intermodalsystem would allow the quick transfer 8 , of freight from one transport system to another. - ' ...... " Because there has been no federal leadership in transpor­ 6 , " tation, and particularly in high-speed ground transport, for " 15 years, different systems are being considered in various 4 --.... partsof the country. If these projects go ahead, it will eventu­ ally be difficult to link them up to a national maglev grid. 2 � .... We can see that very problem in Europe, with the effort to integrate rail systems with different gauges. O �------,------�------.------,------� Figure 2 is a conceptual plan for starting the national 100 150 200 250 300 350 system by connecting hub airports to maglev networks. Ar­ Travel time (minutes) chitectural plans have also been drawn up for the interface 3 trains/day _ _ 12 trains/day between the air and surface modes, so passengers can deplane _ _ 6 trains/day _ 24 trains/day and enter the maglev terminal, rather than renting a car or taking an additional short flight to reach their final desti­ Source: Federal Reserve Bank study. 1984. nation.

Tra vel time and thefr equency of departures have been fo und to be In passenger transport, and even more so for freight, the two major fa ctors influencing how passengers choose among intermodal operation with clean interfaces and added conve­ various transport modes . nience can exponentially increase the productivityof the en-

24 Science & Technology EIR May 18, 1990 tire system and make traveling safe, rapid, efficient, and Transrapid system could be used to serve vacationers and environmentally pleasurable. casino tourists, but the U.S. needs a national system, to serve the needs of the whole country. What makes maglev 'economical'? Figure 3 describes two of the most important considera­ In a article in the New York Times in September 1989, tions, from the passengers' standpoint, in choosing a particu­ Eric W. Beshers insisted that high-speed rail cannot pay for lar mode of transport. The longer a trip takes , the fewer itself. Unfortunately, Mr. Beshers is not just a misguided riders will prefer that mode. Also, the higher frequency of commentator, but the former deputy director of the office departures, the more passengers. Maglev systems for the of economics of the Department of Transportation. It is no U.S. have been conceived of as consisting of one-car vehi­ wonder we have had no investment in transportation. Aside cles, which can have a headway, or time between departures, from Beshers' insults that the French and Japanese high­ as shortas one minute. This is possible because the sophisti­ speed trains are nothing but "boondoggles" and that the cated computer controls which are necessary for the levita­ claims of cleaner air, energy efficiency, etc. are "nonexis­ tion, propulsion, and guidance of the 300mph vehicles al­ tent," it is interesting that he has no historical understanding ready require the constant monitoring and control which of the role of transportation as the "enabling" capability to would allow the vehicles to have relatively small distances all economic activity. As most U.S. schoolchildren know, between them. before there was large-scale development of industry and As Table 1 shows, the per mile cost of building high­ agriculture west of the Mississippi, there were the trains. speed rail ranges from $21 million for the Japanese Bullet Before that, the network ofman-made and improved internal train, to perhaps $10 million for the French and Swedish waterways allowed the East to develop. versions. For maglev, it is estimated that 80-90% of the cost There is no cost-benefit analysis that can be carried out will be for the construction of the guideway. The vehicles which will show that infrastructure can "pay for itself." Do are relatively inexpensive. While it is too early to estimate children "pay for themselves?" Their role is to be "enabling" with any degree of confidence what the superconducting for the future of society. maglev system will cost, it is interesting to note that interstate It is also disturbing that Mr. Beshers makes no attempt highway construction can cost $15 million per mile in subur­ to reveal what parameters , particularly for financing, he is ban areas, and as high as $30 million per mile in urban using. At the recently held maglev symposium in Washing­ regions. Of course, included in these figures is the highly ton, Dr. George Lodge from Harvard University referred inflated cost of real estate. As Vice President Dan Quayle to the difficulties that the government-supported Sematech pointedout in a speech on May 1 before the annual meeting consortium is facing in promoting U.S. commercial leader­ of the American Institute of Aeronautics and Astronautics, ship in semiconductors. Semiconductor industry leaders, who are developing a is product which supposed to be able to make a profit, have TABLE 2 told the Congress that, unless credit at lower interest than Energy-intensity comparison for a 300-mile trip currentlyexorbitant commercial rates is made available, they with a load factor of 0.6* cannot compete with a Japanese semiconductor industry which can borrow capital at 5-6% interest. The United States has nearly succeeded in proving that it is actually possible to System or mode Cruising Energy-Intensity speed (mph) (Btu/PM) make all productive economic activity unprofitable! At the maglev symposium, where the Bush administra­ West Germany TR07 Maglev 310 1,1 50 tion fixated on partnerships between the public and private Canadian second generation 280 890 sectors to build new transport systems, aerospace industry maglev representatives, whose companies would build the airplane­ Japanese MLU002 maglev test 260 1,420 vehicle like maglev vehicles, readily admitted they had no capital Japanese six-car maglev reve- 310 890 for large-scale private investment. The week before, these nue train same aerospace companies had announced more than 10,000 Magneplane (MIT) 225 1,340 Ford Motor Co. Maglev layoffs-their portion of the "peace dividend." Base case (80-pass) 300 5,540 Fairly detailed analysis of the costs of maglev systems Modified (140-pass) 300 4,190 have been done, partly to discover how further advancements Three-car train 300 3,380 Base case with LSM 300 1,390 in the proposed component technologies and system designs Aircraft 400-500 9,1 70 can cheapen the cost of this revolutionary new transport. Dr. Personal highway vehicle (at 65 1,940 Richard Thorntonhas suggested that the technology be made 32.3 milgal) more "elegant" and simpler, as the way to reduce the cost. ·Data are for cruising speed only, excepl for aircraft, which include all gale-Io­ At the maglev symposium, he remarked that the German gale operations.

EIR May 18, 1990 Science & Technology 25 FIGURE 4 Elevated guideway design for Northeast corridor

Elevated Minimum maglev Slope o vertical wall � clearance 14'6" Slope wall 0 ' Guideway t4 (avg)

To avoid slowing down fo r rises and dips in the road, as well asfor increased safe ty and all­ weather op erations, it has been proposed that Thru Thru _ Median the Northeast corridor lanes lanes maglev system be elevated perhaps 40fe et. Source: Report of the Maglev Technology Advisory Committee, 1989.

since early in this century, the U.S. has spent about $2.5 road, the report points out, such as dips and rises, bridges, trillion on its interstate highways. In earlier periods of histo­ and interchanges, would limit vehicle speed at some loca­ ry, national leaders clearly decided that infrastructure was tions if the guideway were at 'ground level. In addition, at "cost effective. " 300 miles per hour, at ground level, the passengers would Designers have used the construction cost of $10-15 mil­ see nothing but a blur. To solve that problem, it is proposed lion per mile as target for maglev systems designs. Table 2 that the maglev guideway be elevated to a height of approxi­ clearly demonstrates why this technology should be fostered. mately 40 feet, so it can pass lover existing structures with Though even with the energy parameters in BTUs per passen­ adequate clearance, as Figure /I shows. ger-mile, maglev consumes less than one-third as much ener­ For abrupt angle curves, the guideway would departfrom gy as aircraft, and no more than automobiles and convention­ the interstate. Offline loading would allow the maglev vehi­ al rail; in addition, aircraft and autos use petroleum-based cles to maintain higher speeds 'and only stop at selected sta­ liquid fuels, of which, at the current time, 54% is imported. tions. It is proposed that the giuideway be constructed with Here, the quality of the fuel is more important than simply prefabricated beams and piers, installed on concrete footings, the quantity. Maglev is an all-electric transport m.ode. While and the beams have their aluminum conductors laid on top. conventional and high-speed rail in Europe is almost entirely The optimum distance between beams, according to the re­ electric, in the United States, less than 10% of the total port, is in the range of 50-100 feet. While the system is under rail trackage is electric. The rest is serviced by liquid fuel­ construction, one guideline must be minimum disruption of engined locomotives. For improved energy and transport se­ normal highway travel. A rou� estimate made by the scien­ curity, as well to avoid environmental noise and air pollution, tists, engineers, and industry advisers is that such a system all-electric transport is required. could be built at a cost of $11-13 million per mile for a two­ The proposal by the Maglev Technology Advisory Com­ way guideway, including components and installation. mittee, contained in its report, "Benefits of Magnetically One important requirement for the U. S. system operating Levitated High-Speed Transportationfor the United States," in the Northeast, is that it be dperable in all weather condi­ benefits from the years of research by Drs. Danby and Pow­ tions. The guideway must be designed so it does not accumu­ ell, as well as Drs. Henry Kolm and Richard Thornton, who late ice or snow. According to Dr. Danby, this is a geometric developed and tested their superconducting Magneplane con­ problem, which is easier to solve on an elevated system, cept, in scale model, in the 1970s. The committee proposes where there is no possibility of drifting. A porous design, for to build the maglev guideway using the right-of-way of the example, would prevent snow from sticking to the guideway. existing interstate highway along the Northeastcorridor. The If the guideway is elevated, the weight of the vehicle becomes center median is typically 50 feet wide, which is adequate a constraining factor. Superconducting maglev vehicles are for an elevated maglev system. The physical fe atures of the projected to be in the 40-ton nmge, whereas the attractive,

26 Science & Technology EIR May 18, 1990 non-superconducting maglev vehicle weighs typically 100 tons. Dr. Danby estimates that containerized freight in the range of the 80,000 pounds carried in trucks, could be hauled on an elevated maglev guideway. It is estimated that for approximately the same $1 billion that has been spent by the Germans and Japanese over the past decade, a superconducting demonstration maglev proj ­ ect could be built in the United States. This could likely be completed over the next five years. From there , commercial systems could be designed, to be in operation at the tum of the century . There is little argument that the U. S. has the capability to leapfrog into second and third generation maglev techno­ logies. How to fund moving from the research and study stage of maglev into the construction of full-scale systems is the subject of a number of pieces of legislation, as wel1 as discussions in the scientific and industrial communities.

Moving maglev forward Numerous bills have been introduced in the Senate by Senator Moynihan and others to try to get maglev off dead center. They vary in the amount of money which would be available, and the way the work is to be paid for. Proposals range from the use of governmentemployee s' pension funds to guarantee loans to industry, to direct appropriations through the budget, and there is even a propsal to return to a 1960s pro-growth policy of investment tax credits for indus­ try . Though Moynihan has made great public fanfare of the scandal that the Social Security Trust Fund surplus is being The German attractive maglev vehicle is the Transrapid. It is ripped off to alleviate the budget deficit, the senator fell silent being developedfor commercial operation between Hamburg and at the maglev symposium when this reporter suggested that Hanover. the more than $60 billion fund be used to extend long-term, low-interest credit to an emerging maglev industry. The collapsing aerospace industry , now following the unprotected "smokestack" industries of the past decade into billion per year on transportation. Surely , a small percentage economic oblivion, is in no position to "share costs" in mag­ of that should be put into future technology. lev development. Recent reports indicate that the political Next month, the FRA will present a report to the Depart­ defense policies being pushed by the Bush administration ment of Transportation evaluating the market potential , and to take down defense production and defense research and interest in U.S. industry for maglev . According to Maj. Gen. development, could easily push the heavily indebted defense Patrick Kel1y of the Army Corps of Engineers , the goal of and industrial capability of this nation over the edge. the U.S. R&D effort is the development of U.S. advanced The billion dollars required to build a demonstration mag­ maglev technology by the end of the century . In June, the lev system should be paid for from the federal research budget Army Corps of Engineers will present an implementation in transportation , as well as the bloated tax receipts already plan for the government intergency effort in maglev. At the being collected through the Social Security payroll tax , and maglev symposium, General Kelly reminded the audience the surpluses in the highway , air, and other "user fee" trust that the Corps had helped NASA put a man on the Moon. funds . Credits at 1-2% interest over 10-15 years would allow Unless the decision is made to make that investment industrial firms to participate in the rebuilding of American soon, the window of opportunity for U.S. maglev develop­ transport, using the technology of the 21st century . ment will close. Then , 10 years from now , our Trade Repre­ According to FRA's Carmichael, there are people in the sentative will be making visits to Tokyo to convince the Bush administration discussing using the Highway Trust Japanese to implement trade barriers which prevent the ex­ Fund, once again , for transportation. Carmichael stated that port of Japanese maglev systems to the U. S. , while the trans­ perhaps there should be a new intermodal trust fund for tech­ port systems and economy here collapse into a heap of rusted nologies such as maglev. Currently, the nation spends $600 metal .

EIR May 18, 1990 Science & Technology 27 TIillFeature

Anti-Defamation League spreads Moscow's lies

by Jeffrey Steinberg

Lyndon LaRouche, independent Democratic candidate for U.S. Congress from Virginia's 10th Congressional District, has issued a sharp warningto all Western intelligence agencies that they are about to be confronted with one of the most ambitious penetration campaigns ever undertaken by the Soviet foreign intelli­ gence services. LaRouche issued this warning upon receiving reports on the May 6-8 conference in West Berlin of the World Jewish Congress-a conference punctuated with repeated signals that the WJC under Edgar Bronfman's leader­ ship, the Anti-Defamation League (ADL) of B'nai B'rith, and other Bronfman­ dominated, pseudo-Jewish organizations have entered into a deep collaboration with the Gorbachov regime in Moscow and have placed their capabilities at the disposal of senior KGB foreign intelligence official Gen. Markus Wolf, former head of the infamous East German Ministry for State Security (Stasi) and a leading collaborator of the late KGB chief Yuri Andropov. LaRouche situated the strategic conjuncture by contrasting the good and bad aspects of the opening of the Berlin Wall, and similar events in Czechoslovakia, Hungary, and Poland. The good side is that Eastern Europe will be opened to economic integration with the West, as well as the obvious political freedom which is afforded to the Captive Nations in this process. The unfortunate part, as emphasized by Admiral Martini of the Italian intelligence services in recent interviews with the Italian media, is that Western Europe and the United States, the NATO countries, are caught flat-footed, totally unprepared to deal with a massive infiltration of the West by KGB agents underthe direction of former East German intelligence chief Markus Wolf. In Berlin, the ADL emerged as co-authors of an ongoing hoax against LaRouche and his friends (see page 30). As the intelligence packet presented in the following pages shows, the ADL is a longstanding collaborator of the Soviet Chekist services, and a most intimate collaborator of Markus Wolf. In the last week of April , Admiral Martini, the head of the Italian SISMI intelligence agency, gave an interview to the magazine L' Europeo warning of the dangers posed by the open borders between East and West Europe. While

28 Feature EIR May 18, 1990 The ADL stages a rally against Strategic Defense Initiative originator Lyndon LaRouche in /981 , outside a conference in New York City of the the philosophical organizationfounded by him . Circled is Dennis King, ADL{unded author of a book-length slander of LaRouche.

welcoming the developments in Eastern Europe as a whole, rather than remaining simply collaborators of the Soviet he cautioned that activities by agents of the Soviet intelli­ KGB , and mere channels of influence, they are moving to gence services will likely skyrocket. Martini warned that the become more integrated into the Moscow Chekist apparatus. West is ill prepared to handle these new challenges. That is because they believe that they secure greater bargain­ Martini's expressions of concern did not even begin, ing power by doing so. They are trying to operate within the however, to take into account the shifting alliances of groups condominium as an agency historically attached to the British like the ADL and the Bronfman leadership of the World side of the Western imperium and who findit expedient now Jewish Congress, which have their base in the West, and to shift their base to make themselves indispensable to the which, present potentially even more dramatic counterintelli­ Moscow side of the condominium in order to have greater gence challenges to Western intelligence agencies which bargaining power and manuevering room within the evolving themselves may already be contaminated by these groups. condominium arrangement. As LaRouche noted on May 8, the ADL is part of an LaRouche cited recent moves by the Bronfman and other international gang which is traditionally associated chiefly financial interests closely allied to the ADL into the newly with the dirtiest side of British intelligence. That section of created financial markets in Central Europe as one critical British intelligence has a longstanding alliance with the Ted­ area in which these circles are currently functioning as de dy Roosevelt circles from the United States, and has estab­ facto agents of the KGB-no longer merely as agents of lished a very important and powerful foothold inside the influence. The ugly fact is, he warned, that the United States, United States, to the point that the ADL today is more sig­ and most of continental Europe as well, have no effective nificant than what is generally called the Zionist Lobby counterintelligence capability to deal with the Soviet intelli­ around the American-Israeli Public Affairs Committee. gence onslaught in which the ADL, Bronfman, and allied In the context of current developments, a strange thing forces are principal Soviet conduits. has occurred: As Britain collapses under the weight of the It is in the interest of addressing some of these intelligence follies of Margaret Thatcher and similar kinds of economic gaps that the Counterintelligence staffof EIR presents in this and social thinking, and as a condominium develops among issue a summary dossier on the aims, goals, personnel, and Washington, London, and Moscow to constitute a global operations of the Anti-Defamation League. Since 1974, and empire, the forces centered around the ADL and the Bronf­ on a dramatically escalated scale since 1978, the ADL has mans have moved ever closer toward Moscow, particularly conducted a multimillion-dollar "active measures" campaign toward the Chekist elements of the Soviet state . against LaRouche, whose policies the Kremlin labeled as a LaRouche said that they have done so because they are casus belli for his well-known role in helping to frame the becoming vulnerable in the Western nations, and, therefore , Reagan administration's Strategic Defense Initiative.

EIR May 18, 1990 Feature 29 KGB-ADL 'dezinfomlatsia', tries to , link Pamyat to Lyn don LaRouche

Once again, the Soviet KGB and the Anti-Defamation "the activities of the healthy forces of the KGB and MVD League (ADL) have been caught cooperating in a dezinJo r­ [Interior Ministry] in their fight to protect social and state matsia (disinformation) smear against Lyndon LaRouche stability." Indeed, the entire dbcument has the strong aroma and his collaborators . The ludicrous campaign in 1986 con­ of having been concocted by the KGB . ducted precisely by these two agencies in the attempt to The document was being circulated privately during the blame LaRouche for the assassination of Swedish Prime Min­ May 6-8 meeting of the Worldlewish Congressby represen­ ister Olof Palme, is now recurring in an even more absurd tatives of the VAADI"Russian ADL." The WJC's President form , with the attempt by these two agencies and their friends Edgar Bronfman is an honorary vice-chairman and member to spread the line that LaRouche and associates "collaborate" of the National Commission of the ADL in the United States. with the avowedly anti-Semitic, neo-Nazi Russian organiza­ The document has also be,n made available to a variety tion Pamyat. of international journalists, arid there are indications that it This new "big lie" is being circulated in the form of a is to be distributed in the United States and West Germany. memorandum written in Russian by a Soviet entity called the These KGB networks may find it even more difficult to League for Struggle Against National Socialism and Racism! make this slander stick, than the line that "LaRouche killed ADL, which is affiliatedwith the Soviet Jewish organization Olof Palme," since it is a fact that for years LaRouche has VAAD, or in English, Congress of Jewish Communities and consistently attacked Pamyat as typifying the rise of Great Organizations of the U.S.S.R. The memorandum purports Russian chauvinism in the Soviet Union. Indeed, EIR, of to document episodes of anti-Semitism in the U.S.S.R. from which LaRouche is a founding and contributing editor, was February to April 1990. At its conclusion, the memorandum probably the firstpublication iiIthe Westernworld to expose states that it was "commissioned by the council of the ADL." Pamyat. Soon after Pamyat's first public appearance in the On its second page, the document reports on an press U.S.S.R. in May 1987, EIR published the first of many conference allegedly given in Moscow on March 21, 1990, blistering exposes of the group (see EIR, Aug. 14, 1987, by several organizations ostensibly representing a new, Great "Mikhail Gorbachov's stable of Great Russian writers"). In Russian anti-Semitic coalition. The purpose of the purported September 1988, a "Global Showdown Update" EIR Special event was to announce the creation of the new coalition. One Report contained a chapter titled "Pamyat: the engine behind speaker, a certain Aleksandr Eduardovich Kulakov, head of anti-Semitism and neo-Stalinism." From his jail cell, a Pamyat splinter group called Orthodox National Patriotic LaRouche has continued to attack Pamyat. Speaking from Front-Pamyat, is quoted by the memorandum: "Precisely the Rochester, Minnesota Federal Medical Center on Jan. with the rebirth of the Orthodox spirit in the people, will II, 1990, he referred to his own unceasing campaign, since begin the annihilation of the forces of evil on the Earth-that the spring of 1983, against the Great Russian chauvinists. He is, Zionism. We, through you [the press] , wish to appeal to attacked Pamyat as typifying the "raskolniki monster inside all the healthy forces in Europe , with a proposal for consoli­ Muscovy," and pointed to the backing for Pamyat in the dation of our actions. These [healthy forces] are the National Soviet military and relevant elements of the KGB . Front of Le Pen [in France], the European Party of LaRoche What a contrast with senior officials of Bronfman' s [sic], the Republican Party of Schoenhuger [sic] , and the World Jewish Congress who as late as 1989 were making Irish Republican Army ." public attempts to minimize the Pamyat threat! Following a It should be noted that the particular misformulation "Eu­ Feb. 11-12, 1989 trip to Moscow, WCJ vice president and ropean Party of LaRouche," has been used earlier by the late Bronfman aide lsi J. Leibler of Australia stated that the Pam­ senior KGB-Cominternoperative ErnstHenry , writing in the yat threat should not be exaggerated: "A bit of Pamyat hooli­ Soviet magazine New Times. ganism doesn't worry me," he said. Only days later, the In a lunatic fashion rarely seen even in the Soviet Union, London Daily Telegraph reported that Pamyat "attracts no Kulakov and other cited speakers rave against Judaism, their less than a million followers," and was a major threat to the epithets interspersed with praise for the Soviet Army and for Jews.

30 Feature EIR May 18, 1990 The KGB-ADL pipeline Markus Wolf. In Searchlight's April 1990 issue, which went The "LaRouche-Pamyat connection" hoax is being done to the printer at almost the same time that the ostensible exactly the same way the "LaRouche killed Pal me" hoax was Kulakov pronouncements were made , there appeared an arti­ carriedout . On March 1, 1986, only hours after Palme had cle explicitly praising the KGB and KGB head Gen. Vladimir been killed, the Soviet intelligence services put out the word Kryuchkov for a new KGB campaign of "fighting anti-Semit­ that "LaRouche did it." That line was quickly spread by Irwin ism." The same issue contains a wild attack on LaRouche Suall, head of the Fact-Finding Division of the ADL, and and on West German Chancellor Helmut Kohl . Searchlight's conduited into ADL-tainted media channels. The KGB-ADL role in collaborating with the ADL in the "LaRouche killed collaboration was so close during the fo llowing months, that Pal me" caper was documented in EIR ' s October 1986 Special the Soviet publication New Times published an attack on Report, "A classical KGB dis information campaign: Who LaRouche and associates in its Sept. 15 edition, under the killed Olof Palme?" headline, "Nazis without swastikas." The headline was • From March 26-3 1 , 1990-right after the alleged Ku­ adapted from a document authored by Dennis King, the lakov statements in Moscow-senior V AAD officialMikhail ADL-backed anti-LaRouche operative in the United States. Chlenov visited the United States to meet with Elon Stein­ Three weeks after the New Times piece appeared, the head­ berg , personal assistant to Bronfman, at the New York office quarters of companies associated with LaRouche in Lees­ of the WJc. On March 28, Chlenov visited the office of burg, Virginia were raided by a massive U.S. government the ADL to meet with ADL International Affairs Director force. Kenneth Jacobson. Chlenov was one of the featured partici­ The following facts are worth considering in this con­ pants at the May 6-8 WJC meeting in Berlin. nection: • One of the featured speakers at the WCJ meeting was • At the May 6-8 WJC meeting in Berlin, an official of Neal Sher, head of the U.S. Department of Justice's Office the VAAD, Yuri Sokol , was being chaperoned by the British Special Investigations, which has specialized in framing up magazine Searchlight, a mouthpiece of the British Campaign anti-communists on behalf of the Soviet Union. Sher defend­ Against Racism and Fascism, which is linked to the ADL ed the reliability of evidence provided by Soviet individuals and to the intelligence-espionage networks of "ex" -Stasi head and entities.

Berlin-Wannsee conference and the CarpentrasatrOc ity, is I both breathtaking and highly suspicious. % Reached for comment on the affair in Rochester, Min! . nesota, where he is a political prisoner, Lyndon LaRouche pinpointed the Soviet-ADL origins of the provocationi,tji which he likened to the notorious ADL practice of having ';('he Soviet KG B and allied networks of Edgar Bronfman agents paint swastikas on Jewish graves and synagogues. and the ADL in France are using a ! horrifying series of "The operation which moves in to exploit the cemetery incidents at a Jewish cemeteryin the viUage of Carpentras, incident, and so promptly," he said, "is not only a reactiorlYw "neafAvignon, to destabilize the political and social struc- which comes from only one place, but the reaction itself a t ture in Europe. I is partof an operation which was lready in motion prior w On May to, it was discovered that over 30 Jewish the incident. It comes from the BronfmaniMarkus WolfI gravestones had been desecrated at the cemetery. The Moscow operation, and it comes in the context of the ,8? cwptjts had exhumed the Oody of an 81-year-oldman who Bronfman-Ied conferences in Germany and Bronfman<\ had di eda month ago, and impaled the corpse on theshaft events in Germany, in Europe.. ' . . of an umbrella. Some ob¥rvers said that even when the "The exploitation of the event is what we're addre$s" Nazis occupied France, tHey never did anything like this ing . ... The event, the process, the reaction tothe eve�t, with a corpse. I was organized and in motion before theevent itself occur­ Bronfman's World Jerish Congress immediately re­ red. That is the essence of the evidence .. . . T,he opera­ leased a statement from Paris,charging that the Carpentras tion which subsumed the leading reaction to the event, ;;'�;,atrocity is part of "the resurgence in France and Europe that reaction was in process before theevent to which th e of the nco-Nazi ideology thatthre ate ns our democracies." reaction occurred, ex isted. The operation comes fr0tI!* The WJC bad been pre-mbbilized to react to anti-Semitic Moscow's KGB, by way of Bronfman and his cronies." incidents during the" just-concluded May 6-8 Berlin­ which includes, course, the K ar and l of l sfelds Seqrchlighi Wannsee conference. The ne�-simultaneity in time of tbe magazine in London."

EIR May 18, 1990 Feature 31 Thx-exempt treachery:a profile of theAnti-D efamation League by Jeffrey Steinberg, Scott Thompson, andEIR's Counterintelligence Staff

edly deeply dismayed when Lyndon LaRouche dubbed the 1. What is the ADL? ADL the "American Drug Lobby." More recently, the ADL has moved to deepen its ties to the Soviet foreign intelligence The Anti-Defamation League of B'nai B'rith proclaims services operating in the West and in the newly liberated itself to be a non-profit corporation "designed to eliminate nations of CentralEurope. defamation of Jews and other religious and ethnic groups; to advance proper understanding among all peoples; and to preserve and translate into greater effectiveness the principles 2. Organizational structure and of freedom, equality and democracy" (from the Bylaws of key personnel the ADL of B'nai B'rith, as amended by the National Com­ mission, June 1982). The ADL, according to its bylaws, is run by a National Nothing could be further fromthe truth . Commission (NC), which currently consists of 151 mem­ In repeated flagrant violation of Section 501 (c)3 of the bers. It is chaired by a national chairman, currently Burton Internal Revenue Service Codes, the ADL operates as a tax­ Levinson, an attorney from Beverly Hills, California. The exempt public interest organization, while in reality it engag­ National Commission formally meets once a year. es in a wide range of activities that are inherently criminal in According to Article VII of the bylaws, in the interval nature, including interference in the judicial and law enforce­ betweenthe NC annual meetings, the ADL's National Exec­ ment process, support for domestic and internationalterrorist utive Committee (NEC) acts for it. The NEC is composed of organizations, instigation of "hate crimes," espionage, sup­ a chairman (now Ronald B. Sobel, a senior rabbi at Temple port for suspected internationalnarcotics traffickers,unregis­ Emanu-EI in New York City) and vice chairman; the elected tered political activities, and covert activities on behalf of officers of the NC, the president, executive vice president, both hostile foreign governmentsand U.S. governmentagen­ and honorary (past)presidents of B 'nai B'rith, together with cies generally linked to the international social democracy. theircounterparts from B'nai B'rith Women; the appointed (It is a matter of historical record that before , during and chairmen of all of the ADL standing committees; and the immediately after World War II, the ADL functioned as a presidentof the ADL Foundation, together with 15 additional "covert action" armof the British Special Operations Execu­ membersof the NC who are elected by it. tive under its North American chief Sir William Stephenson, The ADL, founded in 1913, is formally affiliated with in close liaison with the FBI's Division Five.) B'nai B'rith. However, this link is principally maintained Through its lSI-member National Commission and its throughthe B'nai B'rith's representation on ADL's National paid staff maintaining regional offices in 31 cities in the Commission. Unlike its parent organization, the B'nai United States and a number of locations in Europe , the Mid­ B'rith, the ADL is not a membership organization. One can­ dle East, lbero-America, and the Soviet Union (a Moscow not join the ADL; membership is by nomination or invitation office is in the process of being opened at the invitation of only. In this sense, the ADL bears a greater likeness to the President Mikhail Gorbachov), the ADL operates as a covert secret lodges of Freemasonry than its B'nai B'rith parent strike force whose corruptinginfluence extends into the pores organization, which was originally conceived in the mid- of the financial community, the legal establishment, the me­ 19th century as a Jewish branch of British Freemasonry . dia, and the U.S. government at the federal, state, and local The current president of B'nai B'rith is Seymour D. level. Reich, a longstanding activist and officerof the ADL prior Above all else, the ADL is a public-relations front for to his election to head B'nai B'rith. that branch of American organized crime founded by Meyer Of the current 151 active National Commission mem­ Lansky during the early decades of this century, under the bers , a smaller coregroup directs the overall activities of the patronage and sponsorship of leading Anglo-American fi­ ADL's staff through participation in standing committees of nancial interests. ADL officials, for this reason, werereport- the NC. The standing committees are organized in precise

32 Feature EIR May 18, 1990 parallel to the ADL staff divisions and departments, thus man, who employs associate division director Kenneth Ja­ pennitting the maximum flow of marching orders and other cobson for daily operations. inputs from the National Commission into the day-to-day • Leadership. Recruits activities of the League's paid employees. In this sense, Ed­ potential future leaders, and gar Bronfman and other leading National Commissioners run coordinates an ADL National the ADL. Leadership Conference. Its di­ Standing committee chainnen of the ADL, who, together rector is Marvin S. Rappaport. with their committee members, are appointed by the national The National Leadership Con­ chainnan, include: Howard P. Berkowitz, Planning; Donald ference recently brought 250 R. Mintz, Civil Rights; Michael Nachman, Community Ser­ ADL members from around vice; Sherwin Newar, Budget; Melvin I. Salberg, Communi­ the United States to Washing­ cations; Michael E. Schultz, Administration; Joel Sprayre­ ton, D.C. for three days of Sen . Howard Metzenbaum gen and Lucille Kantor, International Affairs; David H. meetings with officials of the Strassler, Intergroup Relations; Robert G. Sugarman, Lead­ Bush administration, the Congress, and the Israeli embassy. ership; and, William Veprin, Development. The ADL has over 300 people who hold leadership or These committees correspond to the divisions of the honorary leadership positions. Among this list are a number ADL's full-time staff. The divisions include: of honorary vice chainnen who are closely linked to the • Administration. Concerned with the ADL's internal ADL, but who for various reasons-including government affairs, it is directed by Philip Shamis, who had previously service�annot serve as active officers. This group includes been controller for the American Jewish Committee. Senators Rudy Boschwitz (R-Minn.) and Howard Metzen­ • Civil Rights. This division works through departments baum (D-Ohio), fonner Carter administration Secretary of on Fact Finding (headed by Irwin Suall), Research and Eval­ Commerce Phillip Klutznick, fonner Reagan administration uation (Alan M. Schwartz), Legal Affairs (Steven M. Free­ arms control negotiator Max Kampelman, and fonner Sen. man), a Washington, D.C. office (Jess Hordes), where a Abraham Ribicoff (D-Conn.) and Rep . Sidney Yates (D­ Task Force on Nazi War Criminals (Elliot Welles) is based, Ill.). World Jewish Congress president Edgar Bronfman is and four regional area coordinators. Its director is Jeffrey P. also an honorary vice chainnan, along with two other major Sinensky, who had previously been associate director of the crime figuresfrom the old Meyer Lansky orbit, bankers Leo­ division. nard Abess and Theodore Silbert. With the exception of the • Community Service. This division directs the 31 re­ members of Congress, all the above-listed honorary vice gional offices throughout the United States, whose directors chainnen were at one time active National Commission work closely with regional boards appointed by the NC. Its members. director is Charney V. Bromberg, who was previously the deputy director of the International Relations Department of The active operatives the American Jewish Committee. Among the active core of ADL operatives are: • Communications. Handles public relations and the • Burton S. Levinson, ADL national chainnan since production of material. Until January 1990, its director was 1987. His work with ADL dates back to 1950, when, as a Lynne Ianniello. student at Los Angeles City College, he infiltrated a group • Development. It oversees the fundraising activities of affiliated with Gerald L.K. Smith. Now he is a senior partner the ADL Appeal-e.g., ADL honorary vice chainnan Edgar in the Beverly Hills-based law finnof Levinson & Liebennan. Bronfman is also head of the Greater New York Appeal. • Abraham H. Foxman, ADL national director since • Intergroup Relations. It is made up of departments on 1987. He has worked on the staff of the ADL since 1965 . Education (Frances M. Sonnenschein); Higher Education! Born in Baronowicze, Poland in 1940, Foxman is one of Campus Affairs (Jeffrey A. Ross); Interfaith Affairs (Rabbi the most mysterious figures in the ADL leadership. U.S. Leon Klenicki, who is also liaison to the Vatican); Televi­ intelligence sources, and even some top-ranking ADL mem­ sion, Radio and Film; Publications (Howard J. Langer); and bers, reportedly suspect Foxman may be a Soviet "illegal"­ an International Center for Holocaust Studies (Dennis B. a long-tenn penetration agent operating without any links to Klein). Its director is Alan Bayer, who was previously execu­ the official Soviet diplomatic corps. tive director of the Jewish Federation of San Antonio, Texas. • Arnold Forster was associate director of the ADL un­ • International Affairs . It comprises departments in the der Ben Epstein since 1946, and is now a member of the NC United States concerned with European, Latin American, and ADL general counsel. He has been "Of Counsel" with and Middle Eastern Affairs, and is in charge of ADL's over­ the New York law finn of Shea & Gould, a finn intimately seas operations, including the offices in Paris (Robert Gold­ tied to the late mob lawyer Roy Cohn. man), Rome (Lisa Palmieri-Billig), and Jerusalem (Harry • Kenneth J. Bialkin. This fonner ADL national chair­ Wall). Its director is ADL National Director Abraham Fox- man from 1982-86 is today an honorary chainnan and NC

EIR May 18, 1990 Feature 33 member, as well as president of the ADL Foundation. had been instrumental in structuring the money-laundering • Theodore H. Silbert . An honorary vice chainnan , he and theft scheme at every level. Law enforcement officials works with Edgar Bronfman in the lucrative Greater New believe that lOS was one of the early conduits for billions of York Appeal for the ADL. Silbert is chairman of Sterling dollars in drug profits, and was a cash repository used by National Bank (see below). Meyer Lansky. • Burton M. Joseph, ADL national chairman from 1976- Recently, Bialkin left ' 1978, is today an honorary chairman. His family runs the Willkie Farr to join the coun­ Minnesota-based agricultural products firm I.S. Joseph. try 's largest law firm, Skadden After World War II, Joseph teamed up politically with liberal Arps. In much the same way Democrat Hubert H. Humphrey, through whom he became that W illkie F arr pioneered the friends of Max M. Kampelman (now ADL honorary vice elaborate offshore money­ chairman) and ADL top funder Dwayne Andreas. Together laundering schemes that today they form the "Minneapolis ADL mafia." constitute the bloodstream of • Edgar Bronfman , ADL honorary national chairman the international drug trade, and head of its Greater New York Appeal (see below). Skadden Arps pioneered the Kenneth Rialkin • Irwin Suall. Since 1966 , he has headed the Fact-Find­ junk bond and leveraged buy­ ing Department of the ADL's Civil Rights Division. out schemes through which billions of dollars in dubious • Meyer Eisenberg, ADL vice chairman and former offshore money have been repatriated through hostile corpo­ head of the National Commission's Civil Rights Committee rate takeovers and asset stripping of America's industrial (with oversight over the Fact-Finding and Legal depart­ sector. Two of Skadden Arps's most notorious clients are ments). He served from 1959-70 as an attorney with the U.S. Drexel Burnham's Michael Milken and Ivan Boesky-both Securities and Exchange Commission, attaining the position of whom, not coincidentally, have been ADL contributors. of deputy general counsel of the SEC before his retirement Another ADL national chairman, Burton Joseph , played from governme!1t. In private law practice with a string of a pivotal role in the Robert Vesco takeover and looting of Washington, D. C. area firms , Eisenberg remains one of the lOS , by putting Vesco into contact with his protege, financier nation's experts on securities law. Meshulam Riklis of the Rapid American Corp. Riklis, ac­ cording to court records, purchased a controlling block of lOS stock as a surrogate for Vesco. Riklis was later linked 3. to Bialkin, Edgar Bronfman, Henry Kissinger, and other The ADLand organized crime ADL figures in a real estate scandal involving the illegal It was no public relations gaffe when, in 1985, the ADL purchase of large tracts in the Israeli Occupied Territories gave its Torch of Liberty award to gangster Morris Dalitz, a and Christian and Muslim sections of Jerusalem. founder of the notorious Purple Gang and longtime crime During Bialkin's tenure at Willkie Farr, the firm also partner of the late mobster Meyer Lansky. The present lead­ handled pro bono legal work for the ADL, and represented ership of the ADL is dominated by figures with longstanding major ADL donor and suspected crime figureEdmond Safra. ties to organized crime , particularly to the international drug Bialkin represented Safra in the Syrian banker's takeover of money-laundering apparatus. American Express, a transaction that ended years later in a Foremost among these contaminated ADL officials is fiasco, with American Express officials accusing Safra of Kenneth Bialkin, the ex-national chairman who is still an money laundering. honorary national chairman and a director of the ADL Foun­ On Jan. 3, 1989, officials of the U.S. Customs Service dation. While with the New York law firm of Willkie Farr and the U.S. Drug Enforcement Administration in Berne, and Gallagher throughout the 1970s, Bialkin masterminded Switzerland identified Edmond Safra as a major figure in an Robert Vesco's looting of Investors Overseas Service (lOS) international drug money-laundering scheme involving the of more than $60 million. Vesco, the fugitive financier now Shakarchi Trading Co. The government reports identified living in Havana, Cuba, was an early partner of Medellfn Safra as a lifetime friend and business associate of Moham­ Cartel dope smuggler Carlos Lehder Rivas, helping Lehder med Shakarchi, and identified numbered accounts at Safra's to set up his marijuana and cocaine smuggling routes through New York City Republic National Bank as pass-through ac­ the Bahamas . On April 17, 1989, Robert Vesco was again counts for drug profits from Syrian, Lebanese, Bulgarian, indicted by a federal grand jury in Jacksonville, Florida, and Colombian trafficking organizations. which charged him with involvement in a Medellin Cartel According to aides to Safra, he arranged that the ADL cocaine-smuggling conspiracy from 1974-89. receive $1 million from money he won in a lawsuit in 1989. In January 1980, a jury in the U.S. Southern District of There is one financial institution that is more closely New York ordered Willkie Farr and Gallagher to pay $35 linked to the ADL than any other: Sterling National Bank of million to victims of the lOS looting, and found that Bialkin New York City. On Jan. 29, 1982, Italian authorities filed

34 Feature EIR May 18, 1990 civil suit against Sterling National Bank and other U.S. fi­ The booze baron nancial institutions on behalf of depositors in Banca Privata No discussion of the ADL's ties to organized crime and Italiana, charging that $27 million had been looted. The the drug apparatus would be complete without reference to chairman of Sterling, both at the time of the alleged theft Edgar Bronfman, ADL honorary vice chairman and chief of and today, is Theodore H. Silbert, another honorary vice its New York Appeal. chairman of the ADL and the former head of the ADL Ap­ Today touted as a leading international businessman, peal, its major fundraising arm. philanthropist, and the chairman of the prestigious World Jewish Congress, Bronfman has been unable to erase the Moneybags at Sterling National taint left by the fact that his entire family fortune-Seagram' s Law enforcement sources have identified Sterling Na­ Corp., its majority share in E.!. du Pont de Nemours Co., tional as a mob front since its founding in 1929 by Meyer etc .-derived from his father's Prohibition-era bootlegging Lansky associate Frank Erickson. Sterling National was also activities. Known at the time as the "Bronfman Gang," the implicated in a tax evasion scheme in the early 1980s through Canadian Bronfmans were the main illegal suppliers to another ADL-linked bank director, ArnoldBurns , a Reagan­ America's crime syndicate known as "Murder, Inc." By no era U.S. deputy attorney general. Burns's law firm, Burns later than 1920, when Edgar's father Sam Bronfman and and Summit, apparently set up a string of Caribbean tax Arnold Rothstein agent Jacob Katzenberg were dispatched shelters which shielded millions of dollars in taxable income to Hong Kong to arrange opium supplies, the bootlegging through nonexistent "R&D investments" in Israel. routes were also utilized for the smuggling and retail distribu­ Former Reagan official, Ambassador to Italy Maxwell tion of illegal drugs. Raab, is another longstanding Sterling National director. To this day, elements of the Bronfman family remain tied Raab was a onetime business partner of Meyer Lansky in the to the gutter levels of organized crime, while Edgar and his International Airport Hotel Corp. brothers and cousins have managed to wrap themselves in a Yet another mob-linked banker who sits on the ADL's somewhat ragged cloak of respectability. Edgar's nephew National Commission and is listed in the League's most re­ Mitchell Bronfman was named in a 1972 Montreal Crime cent "Purpose and Program" as an honorary vice chairman, Commission report as an intimate of local crime boss Willy is Leonard Abess of the City National Bank of Miami. In Obront: "Their relationship extends into illegal activities in 1981, Abess brought Colombian cartel money launderer Al­ which they have mutually or jointly indulged . . . the special berto Duque onto the bank's board, where he remained until kinds of favors they did for each other and the resulting he was jailed on money-laundering charges in 1986. The advantages of each in the fields of loan sharking, gambling, following year, Donald Beasley was named City National's illegal betting, securities, tax evasion and corruption" (from chairman. Beasley was the former director of the Nugan The Bronfman Dynasty, by Peter C. Newman). Obront and Hand Bank, believed to have been a major laundering conduit another Mitchell Bronfman crime partner Sidney Rosen were for Southeast Asian heroin proceeds, as well as "black" funds both jailed in the mid-1970s for drug money laundering and derived from the illicit arms trafficking of Theodore G. related crimes. Shackley and other former top CIA officials later implicated When in 1978 the links of the Bronfman family to orga­ in the Iran-Contra scandal. nized crime were published in the book-length study of the A listing of ADL financialcontributors and award recipi­ internationalillegal drug trade, Dope, Inc., commissioned by ents over the recent decades reads like a "Who's Who" of Lyndon LaRouche, Bronfman, according to Quebec police the Meyer Lansky international crime syndicate. Longtime sources, ordered his attorneys to preparea multimillion-dol­ Lansky cronies such as Victor Posner, Hollywood attorney lar libel suit. But after careful deliberation, the attorneys Sidney Korshak, and Moe Dalitz all appear as ADL patrons. strongly argued against such an action. Instead, Bronfman The same pattern holds true at the regional levels of the reportedly poured large amounts of money into the ADL. ADL. For example, Phil Baskin, a Pittsburgh attorney and Almost immediately, the ADL began a shrill publicity and Democratic Party fixerknown to be the chief operator of the dirty-tricks campaign, slandering LaRouche as an "anti­ ADL in western Pennsylvania, was forced to resign as the Semite" and demanding his elimination. senior partner in his law firmafter being implicated in an effort to deliver a major airport construction contract to a top figure in the New York City Gambino family, "Nicky" Sands. 4. The ADLand the Soviet Union Further south, Paul Lipkin, the chairman of the Virginia Regional Board of the ADL, was for decades the personal In its March-April 1990 edition, the West German maga­ attorney for Arthur"Bo otsy" Goldstein, the biggest pornog­ zine Semit, self-described as "the independent Jewish maga­ raphy distributor in Norfolk. Goldstein was arrested 85 times zine," published a blistering expose of ADL honorary vice and served three jail terms for crimes including selling glue chairman Edgar Bronfman's dealings with the now-toppled to minors and peddling sex paraphernalia. regime of East German communist dictator Erich Honecker.

EIR May 18, 1990 Feature 35 The article, by Jacob Dachauer and titled "A Whiskey for Bronfman is a board mem­ the Holocaust," documents how Bronfman used his post as ber of the U.S.-Soviet Trade president of the World Jewish Congress to make deals with and Economic Cooperation the Honecker regime on behalf of his Seagram's liquor em­ Council (USTEC), a collec­ pire, and it is accompanied by a picture of Bronfman receiv­ tion of American Fortune 500 ing the highest state medal of "People's Friendship in Gold" executives and Soviet trade of­ from Honecker in October 1988. ficials actively pushing ex­ The essence of the Semit expose is that Bronfman used panded trade between the two his credentials as head of the once-respected World Jewish superpowers. According to a Congress to absolve the German Democratic Republic U.S. State Department docu­ Edgar Bronfm an (G.D.R.) of any responsibility for the wartime Holocaust, in ment, the Soviet delegation to return for a series of lucrative concessions to market his USTEC is known by the CIA to be dominated by KGB and whiskey in the German communist paradise. GRU (Soviet military intelligence) operatives. Up until re­ As EIR has reported, Bronfman's courtship of the Hon­ cently, the Soviet co-chairman of the group was KGB Gen. ecker regime began in 1986, when an associate of his traveled Yevgeni Petrovich Pitrovanov, a longtime Stalin ally who to East Berlin to meet with Klaus Gysi, the communist re­ survived the post-Stalin shifts and became the head of the gime's secretary of state for religious affairs . Klaus Gysi's Soviet Chamber of Commerce. son is Gregor Gysi, the "reformer" successor to Honecker as chief of the SED communist party (now called the PDS). In Jewish slaves for Israel subsequent trips, Bronfman met with Honecker and SED On Jan. 23 , 1989, syndicated columnists Evans and No­ Central Committee member Hermann Axen. During one visit vak reported on a secret meeting at Edgar Bronfman's New in 1988, Bronfman pledged that he would personally arrange York City apartment which also involved USTEC officials a state visit to Washington, D. C. by Honecker by 1990 at the Dwayne Andreas and James Giffen, together with Morris latest. Subsequent events, of course, have made it impossible Abrams and Simcha Dinitz. The group reportedly hatched for him to live up to that. plans to mobilize Zionist lobby support for the repeal of Edgar's brother and business partner Charles Bronfman the Jackson-Vanik Amendment, in exchange for unrestricted of Montreal became a prominent figure in Canadian-East Soviet Jewish emigration to Israel. German friendship groups, and had veto power over all The genesis of that scheme dates back to January 1985, G.D.R. visas issued to Canadians until the collapse of the when Edgar Bronfman, at the governing board meeting of communist regime in November 1989. These extensive the World Jewish Congress in Vienna, proposed that the G .D.R. links have led some intelligence analysts to conclude organization oppose the Reagan administration's Strategic that Edgar and Charles Bronfman have especially close ties Defense Initiative, "on Jewish grounds." When Bronfman to Gen. Markus Wolf, the head of the East German Staats­ also announced in April of that same year that he would sicherheitsdienst (Stasi) intelligence service and a leading lead the WJC in an effort to prevent President Reagan from protege of the late KGB and Soviet Communist Party boss visiting a German cemetery at Bitburg during his state visit Yuri Andropov. to the Federal Republic, Moscow reciprocated by inviting Edgar Bronfman enjoys equally close ties to the regime him to the Soviet Union in his offi'cialcapacity as WJC chair­ in Moscow, and those links have grown even firmer since man. The invitation, extended by Russian Federation Justice the accession to power of Mikhail Gorbachov in 1985. Ac­ Minister Alexander Sukharev, specifically proposed to dis­ cording to sources familiar with Bronfman's Russian links, cuss Soviet Jewish emigration. the Canadian whiskey baron has been a longtime associate In similar gestures of support for Gorbachov, Bronfman of Alexander Y akovlev , the former Soviet ambassador in has taken the point in forcing the resignation of the head of Ottawa who is now one of Gorbachov's closest advisers. the West German parliament, Phillip Jenninger, for a speech Yakovlev sits on both the Politburo and the newly formed delivered in November 1988 on the 50th anniversary of Na­ Presidential Council. zis' "Night of the Broken Glass" anti-Jewish pogrom. In In scores of speeches and commentaries written since addition, at a widely publicized press conference in Buda­ Gorbachov's rise to power, Bronfman has called upon the pest, Hungary on May 4, 1987, Bronfman branded Austrian United States to grant the Soviet Union Most Favored Nation President Kurt Waldheim an "essential component of the status, membership in GAIT, and access to the most ad­ Nazi killing machine." The charges against Waldheim were vanced Western technologies. In a press telease issued by based largely on Soviet-forged documents and perjured testi­ his officeon March 22, 1989, for example, Bronfman hailed mony, and were part of a major destabilization of Austria Gorbachov for overturning "socialism in one country," de­ and the Vatican. claring, "It is in U. S. interest to prevent even a partial reversal No wonder Bronfman became a frequent commuter be­ of perestroika." tween New York and Moscow .

36 Feature EIR May 18, 1990 Weeks after Bronfman's secret New York City planning the ADL-linked law firm of Shea Gould and the ADL-linked session, on Feb. 11, 1989, Edgar Bronfman led the largest investment house of Bear Steams, are part of a new invest­ delegation of Jewish leaders to ever visit Moscow. On Dec. ment consortium seeking to establish a major financial hub 13, 1989, Bronfman was back in Moscow again, this time in Budapest-with the blessings of both the Gorbachov re­ heading a delegation of 100 Western Jewish leaders to attend gime and the U.S. State Department. the opening of a Jewish Cultural Center. One week later, Kenneth Jacobson, the international affairs director of the ADL was on U.S. watch list ADL, announced that an ADL delegation would also visit ADL links to the Bolshevik regime and its intelligence Moscow in early 1990 to pursue President Gorbachov' s offer services date back decades. Even during the World War 11, to open an office in the Soviet capital. when the Soviet Union and the United States were allied Next to Edgar Bronfman, against the Nazis, certain ADL officials were kept on U.S. Minneapolis grain merchant Military Intelligence watch lists as suspected Soviet agents. Dwayne Andreas, who partic­ According to one eyewitness account, Sanford Griffith, who ipated in the Bronfman apart­ headed the equivalent of the Fact-Finding Division during ment meeting at which the and immediately following World War 11, was on such a "Jews for grain" plot was acti­ list. vated, is the ADL patron most The April 5, 1955 issue of Headlines And What's Behind responsible for the deep ties Them catalogues a controversial instance in which the ADL between the League and the provided cover for a known Soviet intelligence asset. The Gorbachov regime . Soviet agent in question, Vladimir Stepankowsky, had been Dwayne Andreas Although Andreas is not deported from France and Switzerland in the mid- 1930s after Jewish, he is one of the ADL's most generous donors . At a having been identified as the head of the Bolshevik Informa­ critical point in the late 1970s, when the ADL was financially tion Bureau, only to emigrate to the United States and imme­ on the skids, Andreas, at the request of ADL National Chair­ diately go to work for the ADL' s Mitchell Solomon. Through man Burton Joseph of the Minneapolis agricultural equip­ Solomon's ties to U.S. Army Lt . Col. Eugene Prince, an ment firmI.S. Joseph, put up the seed money to establish the intelligence officer in charge of immigration background ADL Foundation. checks, Stepankowsky was able to penetrate American war­ Andreas's relations with the ADL date back to his early time intelligence operations. In 1954, he was identified by political training by ADL National Chairman Ben Epstein, Elizabeth Bentley as a member of a Soviet spy ring; however, a relationship that Andreas described during congressional he was saved from prosecution through the intervention of testimony in 1987: "Mr. Ben Epstein, may he rest in peace, his ADL case officer Mitchell Solomon. By this point, the who was my friend for 20 years , to his everlasting credit, ADL had deployed the Soviet agent into the National Renais­ was my mentor and guidance on the matters of diplomatic sance Party of James Madole, a neo-Nazi countergang that positions. I worked with him for weeks on this problem of had been set up largely by ADL infiltrators in order to create how to expand trade with the U.S.S.R." the specter of a new "fascist menace" inside the United The Sept. 26, 1986 Wall Street Journal, in a front-page States. According to the Headlines account, the Madole piece titled "Gorbachov's Pal: Dwayne Andreas Gains a Po­ group attracted a small core of members , principally on the sition as the Kremlin's Apparent Favorite," identified An­ basis of the ADL providing NRP founder Madole with a dreas as the successor to Occidental Petroleum's chairman stable of prostitutes from the Mickey Jelke vice ring. ADL Armand Hammer (now 91), as the Soviet regime's favorite officials Ben Epstein and ArnoldForster then reportedly used "capitalist. " Stepankowsky's information to inundate the Velde Commis­ It was apparently Andreas, who has had more private sion (House Un-American Activities Committee) with scare audiences with Gorbachov than any other Westerner, who stories that the NRP had swelled to 200-700members in New arranged the invitation for the ADL to set up shop in Moscow York City alone. ostensibly in order to help combat anti-Semitism inside Rus­ sia. A former State Department intelligence officertold EIR that the real purpose of establishing the ADL office in Mos­ 5. ADL cow is to improve ADL coordination with the KGB in run­ The and Project Democracy ning pro-Gorbachov propaganda inside the United States. ADL officials, and the ADL as an organization, are guilty Another feature of the ADL's current "go east" push is of the same crimes for which Carl "Spitz" Channell and the effort by Bronfman and others to move in on the "lucrative Richard Miller were indicted during the 1987 Iran-Contra new markets" in the liberated nations of Central Europe--on probe: illegally using private, tax-exempt organizations to behalf of organized crime. For instance, the Canadian real conduct covert operations. However, unlike Channell and estate billionaires, the Reichmann brothers , represented by Miller, who were low-level flunkies in the overall "secret

EIR May 18, 1990 Feature 37 parallel government" plot, the ADL was deeply involved Contra effort. That month, Rosenthal addressed a closed­ in every facet of the Iran-Contra scandal and the Project door White House meeting sponsored by Faith Whittelsey at Democracy scheme at the highest levels on both the govern­ which aspects of the covert Contra support program were ment and private sector sides. apparently discussed. The ADL's central role in the officialPro ject Democracy In a memorandum to the Latin American Affairs Com­ apparatus of the Reagan-Bush era was an outgrowth of the mittee of the ADL dated June 9, 1983, Rosenthal described ADL's longstanding position as a major agency within the the ADL's direct role in the anti-Sandinista propaganda of­ U.S. branch of the Socialist International, which has always fensive: been dominated by members of the old Bukharinite "Right The ADL's Sandinista antir-Semitism "story's unusually Opposition" to Stalin. This link: is typified by Fact-Finding wide international and domestic coverage, by both print and Division head Irwin Suall, who was trained by the Interna­ electronic media, stimulated a flood of calls and mail to tional Ladies Garment Workers ' Union of former U.S. Com­ Nicaragua's Embassy and Consulates and also elicited strong munist Party chairman Jay Lovestone. Suall was later comments from members of Congress. A few days after the schooled at the premier Fabian labor school, Ruskin College story broke, the Nicaraguan Embassy contacted us through at Britain's Oxford University, and then passed through the intermediaries and inquired if we were willing to meet and Socialist Party and the Jewish Labor Committee before grad­ discuss the issues. The Embassy then called officially to uating to his ADL post in 1967. Today, Suall sits on the invite ADL representatives to meet the Nicaraguan Ambassa­ board of the League for Industrial Democracy and theSocia l dor, Antonio Jarquin. The meeting was held at the Nicara­ Democrats USA. guan Embassy in Washington Qn Monday, June 6." The direct links between the ADL and the Iran-Contra • Kenneth Bialkin, then the national chairman of the fiasco run through the following key players: ADL, was the attorneyfor Saudi billionaireAdnan Khashog­ • Carl Gershman, a former paid staffer of the ADL's gi during 1984-85 when Khashoggi provided the initial funds Fact-Finding Division, was the director of the National through which the Iranian governmentpurchased arms from Endowment for Democracy (NED) throughout the Iran-Con­ the North-Secord-Hakim "Enterprise." At the time of these tra fiasco. From 1966-72, Gershman was employed by the transactions, Bialkin was also a member of an administrative Research Department of the ADL. According to Jerome commission revamping U. S. federal codes. Another member Bakst, his supervisor at the time, Gershman used his exten­ of the commission was C. Boyden Gray, the general counsel sive experience as a New Left activist at Yale University to to Vice President George Bush, who formally ran the admin­ provide the ADL with detailed dossiers on Students for a istration's Special Situation Group/Crisis Pre-Planning Democratic Society, the Black Panther Party, and the Stu­ Group, the White House interagency units set up under Na­ dent Non-Violent Coordinating Committee. According to tional Security Decision Directive 3 to oversee the Reagan­ documents procured under the Freedom of Information Act, Bush government's Central America policy. as well as a recently published book-length account of the • The Lake Resources front company in Geneva, Swit­ FBI's Cointelpro effortsagainst the black student movement zerland, through which Gen. RichardSecord and AlbertHa­ in the 1960s, the ADL dossiers, apparently including Gersh­ kim laundered the Iranian profits to the Contras, was con­ man's work, were regularly passed on to the FBI's Division trolled fromthe outset by attorneyWilla rd Zucker. A former Five. partner of Bialkin' s at Willkie Farr,Zucker had been installed Early this year, Gershman hired ADL Fact-Finding Divi­ by the ADL national chairman i,n 1972 as the chief of the lOS sion deputy director David Lowe as his executive assistant legal department, making him a key inside player in the at the State Department U.S. Information Agency unit. NED Vesco looting of the fund. was a major government fundingconduit for Lt. Col. Oliver • Edmond Safra, one of the ADL's major financial North, and for White House deputy Walter Raymond's "Pub­ "angels," was the co-owner, with Willard Zucker, of the fleet lic Diplomacy" project, a black propaganda and "active mea­ of corporate jets which were used to shuttle then-National sures" effort launched to shape media coverage of the Sandin­ Security Adviser Robert McFarlane and Lt. Col. Oliver ista regime in Nicaragua. North to secret meetings in Teheran. • ADL Latin American Affairs director Rabbi Morton The ADL itself was directly involved in the "active mea­ M. Rosenthal was directly financed by the NED in 1985 sures" department of The Enterprise, through its sponsorship to conduct an electoral "fact finding" trip through Central of a series of propaganda broadSides attacking as "anti-Sem­ America. Among Rosenthal's assignments for the NED was ites" leftistgroups which oppo$ed the administration's Cen­ the monitoring of the presidential elections in EI Salvador. tral America policy. One such' study commissioned by the On May 23, 1983, Rosenthal issued a report.chargingthat the ADL in 1983 resulted in a book-length attack by writer Har­ Sandinista regime in Nicaragua was guilty of anti-Semitism. vey Klehr on the group called Clergy and Laity Concerned. The Rosenthal attack on the Sandinistas was partof an effort Another study, by longtime ADL stringer Rael Jean Isaac, to marshal Jewish support for the Reagan administration's made similar attacks against the Institute for Policy Studies.

38 Feature EIR May 18, 1990 In 1984, ADL chapters around the country hosted a speaking to the Meridian, Mississippi shootout staged by the Roberts tour by Isaac. Both Klehr and Isaac were funded during the brothers at the behest of the ADL and FBI. same period by the Smith Richardson Foundation, a North A police file report dated June 10, 1968 by Detective Carolina-based tax-exempt foundation with very strong ties Luke Scarborough, confirms the Los Angeles Times report to the social democratic wing of the U. S. intelligence com­ of the Ainsworth setup, namely that there was a three-way munity. Reagan-era National Security Adviser Richard Allen deal between the ADL, FBI, and local police in the matter, and U.N. Ambassador Jeane Kirkpatrick both currently sit for which the ADL had provided the money. As the apparent on the board of Smith Richardson. result of such ADL-FBI cooperation, the federal government "trod lightly" in punishing Alton Wayne Roberts for his part in the murder of Schwerner, Goodman, and Chaney when, 6. The ADLand domestic on March 17, 1970, he was sentenced to only 10 years, and terrorism was paroled in three. The Roberts brothers were reportedly later given the status of "Federally Protected Witnesses," and Today more than ever, the ADL as an organization repre­ remain on the FBI and ADL's informant roster to this day. sents a major agent-provocateur factor within the United As for the ADL officials, Sam Botnick still runs the States, fomenting racial and ethnic tensions, all the while ADL's New Orleans regional office, and his then-assistant claiming to be great defenders of civil rights. Richard Lobenthal took over ADL operations in Detroit. Freedom of Information Act records show that the ADL Lobenthal was later caught funding local members of the played a major role in the FBI's Cointelpro "Racial Matters" Communist Labor Party, a violent Maoist group infiltrated and "White Hate Groups" operations, targeting the civil into local auto plants. Justin J. Finger, who ran the ADL's rights movement as well as its opponents. Among the paid Atlanta-based Southern legal department during the heyday informants used by the ADL during the civil rights struggles of civil rights activities and Klan murders, is now associate of the 1960s were Ku Klux Klan members implicated in the national director of the ADL. murders of three civil rights workers in Mississippi. A Feb. 13, 1970 article in the Los Angeles Times by Baiting the Black Panthers investigative reporter Jack Nelson first revealed FBI and ADL dirty tricks in collusion with the FBI were later run ADL joint patronage of the Roberts brothers in the June 30, against segments of the anti-war movement during the late 1968 murder of a Klanswoman named Cathy Ainsworth. At 1960s and early 1970s. the time of the shootout in front of the Meridian, Mississippi FOIA documents released by the FBI (cf. l00-530-X home of ADL officialMeyer Davidson, which resulted in the from the Special Agent in Charge Los Angeles to FBI Direc­ death of Ainsworth and the near death of her associate Thom­ tor Hoover on the subject "Black Panther Party"/"Racial Mat­ as A. Tarrants III (who survived over 70 shotgun, rifle, and ter") point to ADL-FBI collusion against the Black Panther pistol wounds), Alton Wayne Roberts and six other Klans­ Party as well. The document in question is an Oct. 22, 1968 men had already been convicted for federal civil rights viola­ ADL report on the Black Panther Party by Carl Gershman tions in connection with their infamous murder of civil rights and Jerome Bakst, which concludes: "For the present at least, workers Chaney, Goodman, and Schwernerin Philadelphia, increasingly frequent and increasingly violent encounters can Mississippi in 1964. be expected between the Panthers and the police." The dis­ Roberts's case was under appeal when, according to vari­ covery of this inflammatory report in FBI files corroborates ous newspaper accounts and local police reports, the brothers a passage in the recent book Racial Matters by Kenneth were approached by Adolph "Sam" Botnick, who is still the O'Reilly in a chapter titled, "The Only Good Panther," which ADL's regional director in New Orleans, with the proposi­ says: tion that they would be paid $69,000 to act as agents provoca­ "Division Five tried to disrupt the Panthers by manipulat­ teurs in setting up a Klan bombing of ADL official Meyer ing Rabbi Meir Kahane and the 'vigilante-type' Jewish De­ Davidson's home. Botnick had been a close associate of fense League (JDL), leaking information to college adminis­ the FBI Division Five (counterintelligence) chief in New trators and sources in the Anti-Defamation League, and Orleans, the late Guy Bannister, who had established the working with newspaper columnists. The FBI compared Pan­ left-wing Fair Play for Cuba group that was part of the milieu ther ideology with 'the traditional anti-Semitism of organiza­ of President John F. Kennedy's purported assassin Lee Har­ tions like the American Nazi Party' and the even more tradi­ vey Oswald. Bannister had also been a controller of an agent tional anti-Semitism of the late Adolf Hitler. In the case of provocateur network in the Minutemen which, according to the JDL, the FBI did not limit itself to 'the furnishing of one well-informed U.S. intelligence source, helped break factual information' because Kahane's group could not 'be James Earl Ray out of prison, so that he could be used as a motivated to act' unless 'the information . . . concerning similar patsy in the April 4, 1968 murder of Dr. Martin anti-Semitism and other matters were furnished ...[with] Luther King in Memphis, Tennessee, just a few weeks prior some embellishment.' "

ElK May 18, 1990 Feature 39 Doing the FBI's dirty work after Jewish Defense League (JDL) leader Irv Rubin tried to The ADL has continued its involvement in such Cointel­ deliver a subpoena to Levy, who now heads the rival Jewish pro-type operations to this day. In fact, weII-informed U.S. Defense Organization, for a civil libel case. intelligence sources charge that after the scope of the FBI's The arrest of the 30-year- t' criminality in Cointelpro had been exposed and condemned old terrorist on charges of at­ by the U.S. Congress, the FBI temporarily "shopped out" tempted murder, first-degree all such Cointelpro operations to the ADL. Two iIIustrative assault, and reckless endan­ cases: germent brought to light a new • James R. Rosenberg (a.k.a. Jimmy MitcheII, Jimmy chapter in the pattern of FBI Anderson) is a fuII-time paid agent of ADL Fact-Finding and ADL coIl us ion in domes­ Division. Police reports corroborate statements to EIR that tic terrorism, reminiscent of Rosenberg was the ADL's infiltrator into the Ku Klux Klan Cointelpro. In a July 18, 1984 chapter in Trenton, New Jersey, who sought to provoke the court deposition, the ADL's Mordechai Levy group into bombing Trenton's chapter of the National Asso­ Irwin SuaII admitted that he ciation for the Advancement of Colored People (NAACP). has met and has had telephone conversations with Levy Pay stubs from the ADL to Rosenberg at this time have been "from time to time for quite a long time ." SualI's admis­ recovered. sions drastically underplayed Levy's longstanding role as Like many provocateurs employed by both the ADL and one of the ADL's agents provocateurs . But in an interview the more overtly violent Jewish Defense League, Rosenberg with Village Voice reporter Robert Friedman, another was given military training in Israel as an Israeli Defense ADL Fact-Finding Division official, Gail Gans, confirmed Forces soldier "on loan" from the U.S. National Guard. Levy's status as an ADL operator. Levy was in fact a In 1981, a female JDL member, using the code-name shared asset of the ADL, the FBI, and other police "Ricky," told EIR : "I met Jimmy in Israel around 1978 when agencies. Two of Levy's FBI controllers are known to be I was at the Kfar Saba Kibbutz near the West Bank ....He FBI Special Agents Joseph Valiquette and Paul Locke, was always bragging about how he worked for the Anti­ both of the New York Field Office. Freedom of Informa­ Defamation League to infiltrate the Ku Klux Klan ....Jim­ tion Act documents show that the New York Field office my got all messed up on Valium. He even had to go for drug had an official liaison with the ADL's national headquarters treatment, and that upset him because he got impotent for since at least the 1960s. about six months ....Jimmy reaIIy wanted to be in the In February 1979, Levy was caught attempting to pro­ Israeli military, and he made it-he sent me a picture .... voke a major riot in Philadelphia. Using the pseudonym But he's a 'jobnik,' a paper pusher; they wouldn't trust him James Gutman, Levy obtained a rally permit for a neo-Nazi in combat." rally at which he planned to display banners reading: "Hitler Rosenberg returned from Israel in 1979 to continue his Was Right-Gas The Commie Jews." Working out of the work for Irwin Suall, who apparently used Jimmy's new Philadelphia officesof the JDL,. Levy, under his phony "neo­ military training to have him infiltrate the paramilitary Right, Nazi" cover, was in the process of contacting all of the local which had become a major target of the ADL. On Dec . 7, KKK and Nazi groups to draw them into the event. Simulta­ 1981, Rosenberg appeared in his undercover capacity on neously, he was working with local left-wing and Jewish a WCCO Television documentary in Minneapolis, titled groups and black churches to organize a counter-demonstra­ "Armies of the Right," where he made the most violent tion. When some local reporters learned of Levy's scheme and anti-Semitic statements of any of the members of the and informed the National Park Service, the raIIy permit Christian Patriots Defense League on the show. Either by was canceled. Local press headlines exposed the plot with oversight or intent, the producers never identifiedRosenberg headlines such as in the Journal, "Jew Applied for the Permit as an ADL provocateur. They simply identified him as for Nazi Rally," and the Philadelphia Bulletin, "Nazi Rally­ "Jimmy Anderson," an official of the Queens, New York Rouser Really Jewish?" chapter of the Christian Defense League. Rosenberg and At the same time, the ADL ordered Levy to conduct a another ADL infiltrator/provocateur in the group were later harassment campaign against associates of Lyndon arrested on the roof of a Manhattan brownstone brandishing LaRouche, which involved scores of death threats phoned automatic weapons. into the offices of Campaigner Publications in New York • Mordechai Levy (a.k.a. James Gutman, James Frank, City, and countless harassing phone calls to the homes of Mark Levine, Mark Levy, Morty , etc.). On Aug. 10, 1989, LaRouche associates. By Levy's own admission, that effort Mordechai Levy was apprehended by the New York Police culminated in an attempted JDL armed assault against Lyn­ Department after he mounted the roof of his 6 Bleecker Street don LaRouche's Riverdale, New York apartment and a men­ apartment building in Greenwich Village and wounded an acing demonstration of JDLers and Yippies (Youth Interna­ innocent passerby in wild sniperfire . The shooting occurred tional Party) in front of the Campaigner offices.

40 Feature EIR May 18, 1990 Jury tampering fact-because he was to be used by the government as a The ADL' s direct use of Levy in criminal activities came witness in upcoming federal trials of Lyndon LaRouche. to light in an affidavit submitted in October 1984, during LaRouche's civil libel suit against the National Broadcasting Corp. and the Anti-Defamation League of B'nai B'rith in 7. ADL and international terrorism U.S. District Court in Alexandria, Virginia. Levy admitted to a CaliforniaLaRouche associate that he had been ordered Top officials of the ADL are suspected accessories in a by the ADL to launch a telephone harassment campaign number of major international political assassinations, in­ against the Alexandria jurors, which would be blamed on cluding the murders of Swedish Prime Minister Olof Palme followers of LaRouche. The ADL, according to the affidavit, and Indian Prime Minister Indira Gandhi. While no evidence provided Levy with the names and addresses of the jurors. is known to exist linking the ADL to the actual executions, FBI Special Agent Richard Wade of the Alexandria Field very strong evidence does exist in all three cases implicating Officewas ordered by federal Judge James Cacheris to inves­ top ADL officials in the preparation or the coverup of those tigate the Levy jury-tampering evidence, but the investiga­ crimes. tion was quashed. On Nov. 20, 1984, Levy fireda .45 caliber In the case of the assassination of Indira Gandhi on Oct. slug into the Los Angeles house of a LaRouche associate 31, 1984, eyewitness accounts of a courtroom encounter with who was investigating this jury-tampering incident. ADL officials Irwin Suall and Barbara Wall just hours after In 1985, Levy also emerged as a suspected accomplice Mrs. Gandhi was murdered by a Sikh fanatic who was a in several of the most significant domestic terrorist acts in member of her own security detail, report that the two were years: visibly elated over her assassination. • On Aug. 15, 1985, Tscherim Soobzokov, a leader of The key link between the ADL and the Sikh extremists the Circassian Muslim community in Paterson, New Jersey, who murdered Prime Minister Gandhi runs through Rabbi was the target of a bombing of his home, which caused his Rosenthal a senior ADL employee and head of the league's death on Sept. 7. Just days before the explosion, Mordechai Latin American Affairs Division, who is directly linked to Levy had been in Paterson, publicly attacking Soobzokov in the man who ordered the assassination, Dr. Jagjit Singh a local synagogue withthe same charges by which the U.S. Chauhan. It also runs through Rosenthal's longtime intimate Justice Department's Office of Special Investigations had political collaborator and sometimes business partner Jon unsuccessfully tried to prove Soobzokov was a "Nazi war Speller. Speller is widely believed to be a high-level intelli­ criminal." A few days after the bombing, Levy held a press gence agent for British intelligence and Scottish Rite Freema­ conference in Paterson applauding the attack, but denying sonic networks associated with Lord Nicholas Bethel and responsibility. One week prior to the bombing, Levy had Julian Amery, although he also had documented links to phoned a death threat to Soobzokov's attorney in the OSI Israeli, Soviet, and American intelligence services. case, Michael Dennis, Esq., during which Levy also vowed One year before Mrs. Gandhi's assassination, Speller to kill Soobzokov. sponsored a U.S. visit by Jagjit Singh Chauhan, which in­ On Oct. 11, 1985 , Alex Odeh, the Santa Ana, California cluded meetings with conservative members of the U. S. Sen­ head of the Arab-American Anti-Discrimination Committee, ate. It was partly on the basis of that American tour that died at 11:21 a.m. after a bomb rigged to the door of his Soviet news agencies blamed the Reagan administration for officeexploded as Odeh was reporting for work. The night the Gandhi assassination-eventhough then-Defense Secre­ before he was assassinated, Odeh had been interviewed on tary Caspar Weinberger was in the process of deepening two national television shows, on the hijacking of the Achille U.S.-Indian military cooperation, which was threatening So­ Lauro cruise ship which Odeh said had been the work of an viet influence in the subcontinent. anti-Arafat terrorist splinter group from the Palestine Libera­ After Mrs. Gandhi's death, Rabbi Rosenthal and Speller, tion Organization. Highly reliable sources report that Odeh operating through a front company they had jointly estab­ had been the recipient of multiple threats from Mordechai lished called Transglobal Resources, arranged a series of Levy, the JDL, and the JDO. secret meetings in Washington, London, and Quito, Ecua­ Although FBI Director William Webster, a longtime dor, which resulted in the Ecuadoran government offering "friend" of the ADL, was obliged to publicly identify the Chauhan a large tract of land on which to establish a Khalis­ "Jewish underground" as the most active terrorist organiza­ tani homeland. As the ADL's full-time director of Latin tion in the United States during 1985, no arrests were ever American affairs, Rosenthal had utilized the agency's chan­ made in either the Soobzokov or Odeh cases. Sources close nels inside the Ecuador to help establish a safe haven for Sikh tothe late Alex Odeh were candidly told by the FBI that there extremists, some of whom had recently blown up an Air would be no arrests, because of the killers' links to Israeli Canada flight and had plotted the assassination of Mrs. intelligence. The sources were also told that Levy would not Gandhi's son and successor Rajiv Gandhi during a state visit be prosecuted despite evidence of his complicity before the to Washington in December 1984.

EIR May 18, 1990 Feature 41 The Sikh extremists have never tried to hide their inten­ Party (ELP), which is associated with the ideas and policies tion of eliminating Mrs. Gandhi. Jagjit Singh Chauhan, the of Lyndon LaRouche, was under police investigation. The "president-in-exile" of the nonexistent separatist state of false trail of accusations linking LaRouche to the Palme mur­ Khalistan, issued his widely publicized call for Mrs. der diverted investigators fromlpursuing legitimate leads for Gandhi's assassination on June 9, 1984-three days after the first two months of the probe, thereby wrecking any Indian Anny troops had stormed the Golden Temple in Am­ prospects of solving the crime. It was the ADL, along with ritsar and liberated it from the hands of armed Sikh radicals KGB , which played the pivotal role in that critical coverup linked to Chauhan. Less than one week before Mrs . Gandhi's phase. murder, Chauhan had told a caller into his Reading, England Since 1982, the ADL had been involved with some of headquarters, "Some man will come forward and take offthe the most notorious KGB agents of influence in Sweden in head of Mrs. Gandhi." slandering the ELP. ADL officialIrwin Suall, an active mem­ Chauhan's call led immediately to the formation of the ber of the Socialist International, is an intimate of Swedish terrorist World Sikh Organization. Representatives of the Social Democrat Pierre Schori and West German Social WSO were soon meeting with officials of the ADL's Inter­ Democrat Klaus-Henning Rosen, the chief aide to former faith Affairs Department, according to Rabbi Leon Klenicki, Chancellor Willy Brandt. SchOri was named by confessed the department's director. The meeting had been set up at the Norwegian KGB spy ArneTreholt as a leading KGB "agent request of Landrum Bolling, the chairman of the Eli Lilly of influence" in Scandinavian social democratic circles. Endowment, which heavily funds the League's interfaith In 1982, Suall aided Swedish television producer Goran unit. Rosenberg in preparing a series of slanders labeling the ELP Surjit Singh, a top official of the WSO who has been as "neo-Nazi. " Two years later, the daily Svenska Dagbladet intimately linked to Chauhan since 1947, is also a close published a similar slander by' Willy Silberman, based on personal friendof ADL Honorary National Chairman Ken­ "research" by journalist Hans Lindquist, a protege of Joa­ neth Bialkin. chim Israel. Investigations at the time revealed that Lindquist had been directed in his efforts bythe ADL' s European direc­ The Palme assassination coverup tor in Paris, Shimon Stanley Samuels. Samuels, in tum, had If the assassination of Indira Gandhi was intended as a coordinated the anti-LaRouche campaign with Gerry Gable, blow to improving U.S.-Indian relations to the benefit of the the London-based editor of Searchlight magazine and a mem­ ADL's London sponsors and Soviet and Israeli friends, the ber of the Communist Party of Great Britain. Searchlight is assassination on Feb. 28, 1986 of Swedish Prime Minister believed to be one of the KGB's major front-publications in Olof Palme appears to have been similarly motivated by a Western Europe. Thus, at least two years before the Palme common objective of certain circles in Moscow, London, assassination and coverup, the ADL was already involved and Washington: to cover up the biggest international weap­ with Soviet intelligence networks in slandering LaRouche in ons and drug trafficking scandal in history-a scandal that Europe. only began to surface with the Iran-Contra revelations in Within 72 hours of Palme's murder, Danish, West Ger­ the United States and Western Europe and the more recent man, and Soviet news outlets were naming the ELP as prime "Stasi-gate" in East Germany. suspects of the Swedish police. This set the stage for the When Prime Minister OlofPalme ordered Swedish police detention nine days later of Victor Gunnarsson, a local Stock­ to raid the officesof Karl Erik Schmits, a prominent interna­ holm weirdo who had once signed a petition endorsing the tional arms dealer, just months before his assassination, sig­ ELP's party status, possibly on behalf of socialist party-run nificant evidence began to tum up concerning American, police networks who had used him for years as an informant British, Israeli, as well as Soviet bloc arms traffickingto Iran, on groups opposed to the Palme' s Socialist Labor Party Iraq, and the Nicaraguan Contras all in apparent collusion. (SAP). Palme reportedly became deeply concerned when the full Unconfirmed reports suggest that the ADL deployed a extent of Swedish socialist democratic involvement in the team of operatives to Stockholmin early March 1986 to fuel armstraf fickingand profiteering was documented in records the accusations against the LaRouche associates, but that the seized in the Schmits raids, and began to crack down on the team was summoned back to the United States when two flowof arms from Sweden to the Persian Gulf. At that point, LaRouche associates won the Illinois Democratic primary the prime minister became an expendable adversary of the elections for lieutenant governor and secretary of state on very intelligence services for whom he had worked through­ March 18, 1986. out his political career. What is confirmedis that Jonas Hafstrom, the first secre­ While the identity of the assassin team may never be tary of the Swedish embassy in Washington, was put in con­ known, a profile of the responsible agencies emerges from tact with the ADL's International Affairs Director Abe Fox­ the massive coverup which began within hours of the Palme man by Israeli embassy deputy chiefof mission Elyahim Ru­ murder, with the first news leak that the European Labor benstein-Migdal. Foxman funneled ADL "files" on

42 Feature EIR May 18, 1990 LaRouche into the hands of Stockholm Police Chief Hans plete the railroading of the OSI's targets, more violent means Holmer, the chief investigator of the Palme murder, through have been frequently used. The already cited case of Tscher­ a Swedish Foreign Ministry official named Nils Rosenberg. im Soobzokov is one such example. The more recent events Those filesbecame an integral part of the Palme task force's in Israel involving John Demjanjuk, a retired Cleveland au­ coverup. At the same time, U.S. State Department Swedish toworker falsely accused of being Treblinka concentration desk officerRichard Christensen steered American reporters guard "Ivan the Terrible," are an even more telling case of to ADL stringer Goran Rosenberg, the producer of the 1982 ADL-KGB collusion. television slander, who was by then based in Washington, On Nov. 29, 1988, Dov Eytan, a respected attorney and D.C. member of the Israeli establishment, plunged to his death out On March 18, 1986-the same day as the Illinois pri­ of the 15th floor of his office building in Tel Aviv. At the maries-Irwin Suall appeared on NBC Nightly News in an time of his death, Eytan, a former judge, was preparing interview with Brian Ross, in which he said that LaRouche Demjanjuk's appeal before the Israeli bar which would expo­ associates were capable of assassinating Palme. On March se the Soviet KGB's hand in forged documents, witness coer­ 19, Swedish police released Gunnarsson for lack of evidence, cion, and the suppression of exculpatory evidence by the although the "Gunnarsson-ELP" track of the investigation U . S. Departmentof Justice's Officeof Special Investigation, was pursued for many months. all of which had led an Israeli court to sentence Demjanjuk The Suall-ADL propaganda offensive intersected an to death as "Ivan the Terrible." On Dec. 1, at Dov Eytan's identical campaign by top Soviet officialsto blame the Palme funeral, after a quick ruling by the Israeli government that murder on LaRouche and the ELP. The Soviet disinformation he had committed suicide, acid was thrown in the face of effort was steered by Sergei Losev, the director general of Yoram Sheftel, John Demjanjuk's other lawyer, who had the official Soviet news agency TASS, and was coordinated argued forcefully that Demjanjuk was the victim of mistaken in Stockholm by Soviet ambassador Boris Pankin. Pankin, a identity perpetrated by the OSI and Soviet KGB . former director general of V AAP, the Soviet copyright of­ In fact, virtually all of the witnesses against Demjanjuk fice, has been identified as a lieutenant general in the KGB had either earlier given contradictorytestimony , or had been and a former director of KGB Service A, the disinformation proven to be liars during the course of the trial. The key piece unit, before he became ambassador in Stockholm in 1982. of "evidence" against Demjanjuk, a concentration camp ID On Aug. 24, 1989, the Swedish daily newspaper Expres­ card, had been flown to Israel from Moscow by Soviet agent sen revealed that officials of the Swedish national police Armand Hammer aboard his Occidental Petroleum private (sAPo) counterespionage unit had bugged the home of a jet. Demjanjuk's attorneys presented conclusive evidence Soviet embassy official and suspected KGB man and had that the ID card was a KGB forgery. obtained taped evidence that the Kremlin knew in advance More recently, in the United States, the ADL launched of the Palme assassination. Thus, the ADL was not only an attack against Rep. JamesTraficant (D-Ohio) , because he complicit in a major international assassination coverup charged on Aug. 2, 1989 that the OSI may have deliberately scheme; the scheme at least in part concealed Soviet complic­ withheld information showing that a key witness against ity before the fact in the assassination of a Western head of Demjanjuk, Otto Hom, perjured himself when he identified state. Demjanjuk as "Ivan" during 1981 denaturalization proceed­ ings. The proof of the perjury was discovered in two internal OSI reports found in a trash can outside their office, which 8. ADL subvertsju stice: the OSI were then given to Demjanjuk's son-in-law. Traficant, who has asked AttorneyGeneral RichardThornburgh to authorize One of the most significant focal points of Soviet and an "objective review" of OSI work on the Demjanjuk case, Israeli intelligence penetration of the U.S. government is said that no one "really knows" if Demjanjuk is Ivan. "We through the Justice Department's Officeof Special Investiga­ endanger the rights of all Americans by allowing John Dem­ tions (OSI), a unit created by congressional action in 1978 janjuk to be hung out to dry under such unusual circum­ to ostensibly hunt down Nazi criminals and deport them from stances," Traficantadded . the United States to stand trial for their crimes back home. Not only had the OSI suppressed evidence of Otto Hom's In fact, the OSI has always functioned as a pipeline for perjury, but there is reason to believe that the entire case had Soviet-forged evidence and other contamination of the Amer­ been fabricated by the OSI. ADL honorary vice chairman ican judicial system, and for Soviet and Israeli propaganda Edgar Bronfman has also mobilized the World Jewish Con­ directed against Eastern European emigre circles within the gress, of which he is president and chief contributor, in tan­ United States. The ADL maintains a full-time liaison officer dem with the OSI on numerous other cases. The original list to OSI posted in Washington, and another full-time ADL of 200 suspected Nazi war criminals living in the United officialworks with Israeli authorities in Tel Aviv. States, which constituted the bulk of cases since probed by Where forged documents have not been sufficientto com- the OSI, was prepared by Charles Allen, a one time research-

ElK May 18, 1990 Feature 43 er for the WJC who headed up an American-East Gennan WJC distorted the facts and even solicited perjuredtestimony friendshipgroup known to be a front group for the Commu­ against the Austrian leader. N011ed war crimes investigator nist Party USA. Simon Wiesenthal has been a harsh critic of the WJC, and has Two years after the OSI's founding, OSI officials Allan defended Waldheim. Nevertheless, Bronfman's evidence led Ryan and Neal Sher, anned with the Charles Allen "list," the OSI's Neal Sher to place Waldheim on a watch list of traveledto Moscow, where they met with General Rudenko, those prohibited from entering the United States. a Soviet military official, to review Russian files on the ac­ cused wartime Nazis. Gen. Roman Rudenko was well­ known for his handling of Moscow's genocide policy toward 9. ADLpenet ration of law Ukrainians in the 1930s, when 8-10 million Ukrainians died enforcement of starvation-a perfonnance that had earned him a promo­ tion to be one of Josef Stalin's favorite prosecutors during Despite the fact that the ADL has been repeatedly linked the purge trials. When the OSI's Sher and Ryan met with to organized crime, foreign espionage agencies, and domes­ him in 1981, they arranged to introduce the sort of KGB­ tic and international terrorist groups, the League has man­ manufactured evidence for which the OSI would become aged to conduct a highly successful campaign to insinuate notorious. itself into the day-to-day workings of virtually every major As the ADL's Teitel writes: "The United States-Israel police department and sheriff's' department in the United cooperationin this [Demjanjuk] case was only the tip of the States. In doing so, it has drawn heavily upon its longstanding iceberg. Without similarcooperation between the U.S. and "special relationship" with the FBI-which has blossomed the Soviet Union, John Demjanjuk might never have been under recent directors William Webster and William Ses­ found." And the September 1984 edition of the ADL Bulletin sions-and upon its deep involvement with the Justice De­ carried a two-page article by Neal Sher, who had succeeded partment's Officeof Special Investigations. Ryan as OSI director, defending the OSI against charges In the spring of 1989, Justin Finger, the ADL's associate fromEastern Europeans that this agreement with the Soviets national director, led a delegation of American law enforce­ had introduced KGB "forged documents" and "intimidated ment officials to Israel on an all.;expenses-paid tour that in­ witness" testimony to U.S. courts. cluded meetings with the Israeli: National Police, the Shin Beth, the Mossad, and special anti-terrorist units. Among The Arthur Rudolph and Kurt Waldheim the police executives along on the trip were: Charles Barry, capers the Massachusetts Secretary of Public Safety; Cornelius Be­ Edgar Bronfman was a willing accomplice in the OSI's han, the police chief of Baltimore; Lester Forst, the Connecti­ frameupof the rocket scientist Dr. Arthur Rudolph, who was cut Commissioner of Public Safety; Michael Hennessey, illegally forced into exile from the United States in the spring Sheriff of San Francisco County; Robert Hightower, Police of 1984 after he had been targeted as a "Nazi war criminal" Chief of Cobb County, Georgia; ,Leroy Martin, Superinten­ in Soviet publications. The real reason why the Soviets and dent of the Chicago Police Department; Charles Plummer, Bronfman targeted the celebrated designer of the Pershing I Sheriff of Alameda County, California; Peter Ronstadt, Po­ and Saturn rockets, was because he was part of the Strategic lice Chief of Tucson, Arizona; Jerry Williams, Police Chief Defense Initiative project, which was then Soviet intelli­ of Aurora, Colorado; and Aristides Zavaras, Police Chief of gence's number-one priority to disable. Kept by lack of funds Denver, Colorado. and advanced age from waging a full defense against the The trip was the third in a series of ADL-sponsored visits groundless charges, and fearful that his wife and children to Israel by major urban police since 1987, and is part of the would be driven into poverty were his U.S. governmentpen­ League's escalated penetration of the American law enforce­ sion revoked, Rudolph reached an agreement with the OSI ment and judicial community. Since 1988, the ADL has been that he would voluntarily return to his native Gennany. A publishing a Law Enforcement BlIlletin. which is distributed subsequent investigation by West Gennan courts found him free of charge to police departments, private security finns, guiltless of any involvement in the crimes the OSI accused and federal government agencies. him of. The Bulletin provides a crazy quilt of accurate and severe­ Bronfman's next case of collaboration with the OSI was ly distorted infonnation, principally targeted at the Palestin­ his campaign against fonner United Nations general secre­ ian movement, pro-Palestinian elements within the left, all tary and current Austrian President Kurt Waldheim, whose varieties of right-wing groups, andLyndon LaRouche. biggest crime appears to have been that, in agreement with In 1986, EIR learned from police officials in Atlanta, the Helsinki Accords, he has given Soviet Jews passing Georgia that Charles Wittenstein, the regional director of through Austria the right to settle wherever they choose­ the ADL, had approached police officials there with an not just in Israel, as implicitly demanded by Bronfman and offerto finance and manage thein entire infonnant program. the ADL. Waldheim's defenders charge that Bronfman's Similar approaches apparently have been made elsewhere

44 Feature EIR May 18, 1990 around the country. leader of Likud's extreme militant wing, as a gift. It was at A reviewof the past decade's issues of the ADL's month­ that ranch, that a series of secret meetings took place in May ly newsletter reveals that in the 31 regional offices in the and November 1982 to plot out an ambitious real estate scam, United States, staff directors devote the majority of their aimed at consolidating permanent Israeli control over the time to liaison with police and prosecutors, often providing Occupied Territories of the West Bank, the Gaza Strip, and information generated from the ADL's own agents provoca­ East Jerusalem, and laying the basis for the recent years' teurs inside the radical leftand right. For example: flood of Russian Jewish immigrants. • In February 1984, Stan Anderman, ADL regional di­ According to eyewitness accounts, the Sharon ranch rector in St. Louis, and Michael Lieberman, ADL Midwest meetings brought together representativesof the Bronfmans, regional director, addressed a Missouri Law Enforcement Britain's Lord Harlech and Lord Carrington, Henry A. Kis­ conferenceat Ozark Lake. Other speakersincluded Jim Win­ singer, and the ADL's Kenneth Bialkin. ter, the director of the FBI's Counter-Terror Program; Jim Operating through an extensive network of American­ Elder, head of the St. Louis office of the Bureau of Alcohol, based Christian fundamentalist groups, the ADL-Sharon Tobacco and Firearms(BATF); Tom Kelly, head of the Kan­ grouparran ged for the illegal purchase of dozens of buildings sas Bureau of Investigations; Howard Hoffman, head of the and tracts of land in the contested territories, and planned Missouri Highway Patrol; and Mark Middleman, a former for their ultimate settlement by militant Jewish activists. A Missouri assistant attorney general who was hired as a staff network of fanatical Jewish fundamentalists based in a series consultant to the ADL. of yeshivas (Jewish parochial schools) inside Jerusalem, in­ • On Feb. 13, 1986, two ADL officials, Michael Kozin cluding AteretCohanim, began illegal excavations on Islam­ and Midwest regional director Michael Lieberman, ad­ ic holy sites in the Old City, proclaiming that they would dressed a Chicago conference on Law Enforcement's Re­ rebuild the Third Temple on its original site�ven if it meant sponse to Extremism in the Farm Belt. Among the other blowing up the Dome of the Rock on the Temple Mount, participants in the conference were Illinois U . S. Commission the second-most holy place of Islam. These Jewish fanatics, on Civil Rights director Rhona Stewart; Chicago FBI office many of them linked to the Meir Kahane Jewish Defense chief Joseph Lewis; Chicago BATF office chief James League and Kach Movement and heavily funded by JDL and Seaves; Illinois State Police Director James Zagel; and Chi­ ADL financialbackers in the United States, have carried out cago U.S. AttorneyJames Reidy. machine-gun and hand-grenade attacks on the Dome of the • In February 1987, the ADL sponsored an all-day con­ Rock on dozens of occasions in recent years. In almost every ferenceon terrorismat the FBI headquarters in Indianapolis, instance, Ariel Sharon defended the actions, and even led attendedby 140 police officials.The conference was ostensi­ protest rallies when Israali police removedmilitants by force. bly in preparation for the Pan-American Games, and the The most dramatic confrontation occurred during the keynote speaker was Robert Kupperman of the Center for Easter celebrations this year, when a group of 150 Ateret Strategicand InternationalStudies at Georgetown University Cohanim fanatics illegally obtained a sub-lease on the St. in Washington, who is a frequent participant in ADL spon­ John's Hospice in the Christian Quarterof Old Jerusalemand soredterrorism events. attempted to occupy the building. When the GreekOrthodox • In other, similar conferences with local police, the Patriarch of Jerusalem led a peaceful protest against the ac­ ADL has inserted "experts" with longstanding known ties to tion, Israeli police gassed him and other demonstrators. the Mossad. Among them: Prof. Uri Ra'anan, the recruiter of On April 17 , the caretaker Likud governmentof Yitzhak convicted spy Jonathan Pollard, and Prof. Yonah Alexander. Shamir issued a statement admitting that the Housing Minis­ try, headed by MortonRosenthal and Jon Speller collaborator David Levi, had secretly fundedthe Ateret Cohanim takeover 10. The ADL, Israel, and the of the hospice. These incidents caused Pope John Paul II to Temple Mount plot tell Easter pilgrims in Rome that the "grave incidents" in Jerusalem "are a cause also for me of suffering and profound Since the founding of the state of Israel, the ADL has concern." kept its own "special relationship" with the Israeli Mossad intelligence service, especially with corrupt intelligence cir­ Spying for foreign intelligence services cles linked to what author Jacques Derogy dubbed "the Israeli The ADL's involvement in the dirty underbelly of Israeli Mafia." politics did not begin with the Sharon plot. According to Meshulam Riklis, the protege of ADL National Chairman court records and other sources, the ADL has been used Burton Joseph who was implicated in the Bialkin-Vesco loot­ for decades as a cover of convenience for Israeli Mossad ing of lOS, has been the financial "angel" of Israel's former operations inside the United States. More often than not, Defense Minister Ariel Sharon for years. Riklis purchased a those operations were in direct conflict with U.S. national large ranch in the Negev Desert and gave it to Sharon, the security interests.

EIR May 18, 1990 Feature 45 In 1967, fonner B 'nai B'rith official Saul !. Joftas filed Secretary of Defense Caspar Weinberger had asked the a slander suit charging that he had been fired for his refusal court to impose the maximum sentence on Pollard once U. S. to cooperate with secret Israeli intelligence spy operations intelligence "damage assessments" had revealed that much being run through the B 'nai B 'rith and the ADL. Depositions of the top-secret infonnation stolen by Pollard had found taken in this suit show that in 1960 , ADL honorary vice its way into the hands of the KGB and GRU . Weinberger chainnan Phillip Klutznick, then president of B 'nai B'rith, reportedly concluded that the entire Eytan network had been established a B 'nai B'rith cover for an Israeli intelligence working both for the Mossad and for the Russians. Weinberg­ operation in New York, that sought to penetrate U.S. intelli­ er ordered a more extensive probe to detennine the identity gence by dangling bits of infonnation about the U.S.S.R. of an "X Committee" believed to have been working with The Mossad case officerfor this operation was Uri Ra'anan, Pollard. Some U.S. intelligence specialists believe that a then the director of the Israeli consulate's infonnationdepart­ full probe of the "X Committee" would reveal a significant ment in New York, who later helped recruit Israeli "false interface with the National Commission of the ADL. flag" agent Jonathan Pollard. Another member of this cell While Weinberger was was ADL general counsel ArnoldForster, who was then the pressing the Pollard affair, a ADL's associate national dire�tor. separate scandal began to Another operation run by this group was uncovered during emerge involving another top the court proceedings in a letter to Joftas dated July 7, 1961 ADL associate, Deputy Attor­ by then-ADL national director Benjamin Epstein. The letter ney General Arnold Bums, a read in part: "As you know, the Anti-Defamation League for director of the ADL' s Sterling many years has maintained a very important, confidential in­ National Bank. His law finn vestigative coverage of Arab activities and propaganda .. .. Bums and Summit was caught We have maintained an infonnation-gathering operation running a string of phony off­ Arnold Burns since 1948 relating to activities from the Arab Consular Of­ shore tax shelters that claimed fices, Arab United Nations Delegations, Arab Infonnation big tax write-offs for nonexistent investments in Israeli re­ Center, Arab Refugee Office, and the Organization of Arab search and development finns. One of the attorneys linked Students." The rest of the letter elaborated upon this espionage to the scam was Howard Katz, the paymaster for the Pollard activity, then requested additional funds for it. spy ring. Yet another still active ADL link to the Pollard spy ring Behind the Pollard spy case centers around Mira Lansky Boland, the head of the ADL This 1960s collusion between ADL and the Mossad in Fact-Finding Division office in Washington. Lansky Boland running spy operations inside the U.S. apparently continued had been a classmate of Jonathan Pollard at the Fletcher unabated until the November 1985 arrest of Jonathan J. Pol­ School, and was part of the same tightly knit group of stu­ lard. A Naval Investigative Service (NIS) counterterrorism dents under Professor Ra'anan. At approximately the same analyst, Pollard was part of a spy network set up by "Dirty time when Ra' anan was helping to place Pollard in the sensi­ Rafi" Eytan, a Mossad official and intimate of Ariel Sharon tive position with NIS , he apparently also helped to secure who at one time headed an elite killer squad out of the prime Lansky her job with the ADL. Lansky Boland has played a minister's office. pivotal role in the federal-state "Get LaRouche" task force, Pollard was initially profiled for Mossad recruitment by serving as a principal conduit of infonnation between differ­ Dr. Uri Ra'anan, the fonner Israeli Consulate official and ent state and federal agencies, soliciting press slanders, and longtime ADL collaborator who had taken up a special even producing "witnesses" for the government's cases. teaching post at the Center for InternationalSecurity Studies at the Fletcher School of Diplomacy at Tufts University in Boston. Once recruited, Pollard was "handled" by Col. 11. The ADL subverts the farm A viem Sella, an Israeli Air Force officer operating under the cover of attending graduate school at New York University. movement Sella's wife Ruth was employed during the entire time of With the heavy infusion of cash into the ADL from Min­ the Pollard-Sella operation in the Legal Department of the neapolis grain merchant Dwayne Andreas, the president of ADL headquarters in New York. In protest over the sentenc­ Archer Daniels Midland, Inc., beginning in 1978, the ADL's ing of Pollard to life in prison for his espionage activities, offices in Minneapolis, Chicago, St. Louis, Atlanta, and the Israeli governmentpromoted Sella to the rankof general. Omaha began to function as adjuncts to the major Midwest In response, an ADL delegation rushed off to Israel to pre­ grain cartels, which were at that time expanding their intelli­ vent a full diplomatic rift that might have prompted a deeper gence-gathering and dirty-tricks capabilities against the investigation into the Pollard network leading ultimately to mounting threat of farmer protests against foreclosures and the ADL headquarters. impossible operating costs .

46 Feature EIR May 18, 1990 ADL links to the grain merchants had blossomed earlier, the head of the U.S. Justice Department's Community Rela­ particularly under the chairmanship of Burton Joseph be­ tions Service regional office in Kansas City, Missouri, and tween 1976-78. Joseph was himself in the agricultural prod­ David Tell, head of the Program and Policy Division of the ucts business, running a Minneapolis firm called I.S. Joseph. U.S. Commission on Civil Rights in Washington, D.C., both Joseph and one of his ADL Vice Chairman Max Kampelman confirmed that the federal government's efforts in the farm were known as the "Minneapolis Mafia" within ADL inner belt were fully integrated with the ADL �d ADL-linked circles because of their close links to the Minnesota Farm operatives like Levitas and Zeskind. Similarly, MarkTirchie Labor Party and the Hubert Humphrey-Walter Mondale po­ in the office of Minnesota Gov. Rudy Perpich, and Ann litical machine. Kesten in the office of Minnesota Attorney General "Skip" ADL had also benefited for years from the financial lar­ Humphrey, confirmed their dependence on the ADL to pro­ gesse of the Moore family of the Nabisco Corp.-another vide information and direction to their efforts to "combat giant in the grain industry . extremism" in the farm community . Rather than using physical force to disrupt the emerging farmer popular movement, the ADL resorted to its usual bag of tricks: proclaiming the farm protest movement a hotbed of 12. ADL targets pro-life movement anti-Semitism and right-wing militance, the ADLchurnedout and the Va tican propaganda, spread wildly distorted "intelligence" to federal , state, and local police agencies, and worked with a network In recent years, the ADL has played a major behind-the­ of left-wing radicals to set up farm protest "countergangs" to scenes role in opposing the pro-life movement; both through steer the ferment into populist and impotent directions. the filing of a series of amicus curiae briefs in all the major On Jan. 10, 1986, the ADL's Minneapolis regional direc­ abortion cases now up before the U.S. Supreme Court, and tor Morton Wrywick was a keynote speaker at the founding through the deployment of its spy and agent provocateur conference of the Family Farm Resource Organizing Com­ networks to vilify the Right to Life movement as a haven for mittee (FFROC), a coalition of left-wing farm belt groups neo-Nazis, anti-Semites and right-wing terrorists. including the Socialist Workers Party, Groundswell, Prairie On May 1, members of the Civil Rights Division of the Fire, the Center for Rural Affairs, Catholic Rural Life, and ADL confirmed in interviews with EIR that the ADL has the Center for Democratic Renewal. Joe Krastil was the nom­ intensified its campaign to destroy the pro-life movement. inal head of the group, which disseminated a just-released An ADL team of lawyers and analysts are reviewing videos ADL report titled "The Farmer and The Extremist" as part and news coverage of the huge pro-life march held in Wash­ of its "counseling service" to recently bankrupted farmers . ington, D.C. on April 31, in order to identify "extremists" According to interviews given at the time, Krastil had been and "anti-Semites" who participated. Another ADL source trained by Ken Lawrence, a Mississippi-based left-wing ac­ revealed that the ADL has compiled dossiers on anti-abortion tivist tied to the London Searchlight group, a known KGB activists, with particular attention to monitoring members of front-organization. Lawrence is also a regular writer for the Operation Rescue. The dossiers reportedly are being made CIA defector Philip Agee's journal Covert Action Informa­ available to law enforcement authorities who are trying to tion Bulletin and the National Lawyers Guild's The Public fraudulently apply the so-called RICO, anti-racketeering Eye, which is edited by Charles "Chip" Berlet, one of the statutes to the prosecution of Operation Rescue. most prominent slanderers of Lyndon LaRouche. The ADL has filed a series of amicus curiae briefs taking Another founder of the FFROC front, Lenny Zeskind, a radical pro-abortion stand. Honorary ADL chairman Ken­ runs the Center for Democratic Renewal, formerly the Anti­ neth Bialkin filed the brief with the U.S. Supreme Court in Klan Committee, with Lynn Wells, a former Communist the cases No. 88-790, No. 88-805 , and Nos. 88-1125 and Party youth leader who later helped found the Maoist October 88-1 309. Bialkin filed his brief as the Counsel of Record for League. Dan Levitas, a founder of Prairie Fire, another farm the Anti-Defamation League of B'nai B'rith, B'nai B'rith belt leftistinsurgency group sponsored by the ADL, recently Women, Catholics for a Free Choice, and Women's Ameri­ moved to Atlanta to join Zeskind and Wells at the CDR. can ORT. Listed as "Of Counsel" were such ADL bigwigs as Through ADL officialsMorton Wrywick (Minneapolis), Honorary Vice Chairman Meyer Eisenberg, ADL Associate Michael Lieberman (Chicago), Stan Anderman (St. Louis), National Director Justin J. Finger, and Civil Rights Division Justin Finger and Yitzak Santus (Omaha), Marvin Stem director Jeffrey P. Sinensky. (Seattle), Sol Rosenthal (Denver), Mark Briskman (Dallas) The ADL amicus brief argues that the anti-abortion stat­ and Charles Wittenstein (Atlanta), the collection ofleft-wing utes of "Illinois, Minnesota, and Ohio ...violate the estab­ farm radicals were presented as legitimate "informants" to lishment clause by endorsing one religious theory of when regional law enforcement task forces, set up at ADL urging, life begins" and that they impose "an impermissible burden to deal with the threat of "extremism" in the Midwest. on a woman's free exercise of religion by restricting her In interviews conducted in early 1986, Donald Burger, fundamental religious interest in deciding whether to contin-

EIR May 18, 1990 Feature 47 ue a pregnancy. " The argumentation is in keeping with their Steinberg said that it was "obscene" that the Pope had met dozens of amicus curiae briefs to remove prayer from school, with Austrian President Kurt Waldheim. Steinberg told a in that it advocates a "value-free" school and society in which journalist that the chief theological problem was the Pope's scientificallygrounded moral principles have no force. "triumphalist vision," which he said was a step back from Still more to the point, Laura Kam-Issacharoff,a member the "progressivism of Vatican II." The Pope, Steinberg of the ADL's Israel office, wrote an article for the March 6, warned, is mounting a "conservative international" which is 1990 Jerusalem Post entitled "Anti-Semitism in the Anti­ regressive on issues ranging from abortion, to sexuality, to Abortion Movement." Its openingparagraph reads: "Increas­ the interreligious dialogue between Catholics and Jews, to ing anti-Semitic manifestations in the volatile debate on abor­ failure to support Liberation Theology in Central America, tions are worrying Jewish leaders in the U.S. In several to pushing Solidarnosc in Poland on a dangerous course that states, the FBI has begun probing the burgeoning hate mail might undermine Edgar Bronfman's friend, Soviet President that has been directed at 'pro-choice' Jewish political leaders Mikhail Gorbachov. and doctors." The remainder of the piece contains one exag­ gerated claim after another that somehow pro-life activists believe Jewish doctors are killing Christian babies out of 13. The ADL defends Satan revenge for the Holocaust. Last year, when a group of Texas state legislators intro­ Going after the Pope duced a bill criminalizing certain Satanic ritualistic practices, One day after Pope John Paul II expressed "concern" the Dallas office of the ADL cried "anti-Semitism!" and at­ about incidents at St. John's Hospice in Jerusalem (see tempted to mobilize the Jewish community to block its pas­ above), ADL national director Abraham Foxman made the sage. The ADL effortfe ll on deaf ears, since most rabbis and following statement, as reported in the May 3 Washington other Jewish community leaders had been duly horrified by Jewish Week: "I am concerned and disturbed at the way the the recent discovery in Matamoros, Mexico of a ritualistic Christian community has responded by escalating this into mass burial site on a ranch used by a notorious drug-smug­ an international religious confrontation ....To hear this gling ring. Texas Gov. William Clements summoned both orgy of criticism [i.e., from the Pope] has sinister under­ houses of the state legislature into special session to unani­ tones. It may even border on elements of Crusadism." mously pass the bill, the first of several such anti-Satanism Foxman's remarks are only the latest of a series of dra­ bills to become state law around the country . matic confrontations between the ADL and the Vatican. The The ADL's "religious freedom" antics in Texas reflected last confrontation in the fall of 1989 followed a provocation longstanding ADL complicity in the spread of Satanism and by friends of ADL-controlled terrorist Mordechai Levy in the drug-rock-sex counterculture. The first documented in­ the Coalition of Concern, who attempted to shut down a stance of ADL involvement dates back to the early 1960s, Carmelite convent located just outside the grounds of the when Rabbi Maurice Davis, later of Westchester County, former Auschwitz concentration camp in Poland. New York, participated in Project MK-Ultra, the CIA's foray Glenn Richter, a friend of Levy, issued a press release into the use of LSD-25 and other psychedelic drugs in mind after he had accompanied Rabbi Avraham Weiss, also a controland mass socialmanipulat ion. Davis was thechaplain friend of Levy, in what became a confrontation with work­ at the Lexington, Kentucky Addiction Research Center, a men at the convent, describing how his group had surrounded hotbed of the CIA's secret LSD testing. According to Davis's it, demanding that it be removed, and complaining "that the co-workers at the time, the rabbi helped track some of the 24-foot cross desecrated the memory of the Jewish martyrs of LSD human guinea pigs when they were released to outpa­ Auschwitz." Rabbi Avraham Weiss issued a press statement tient treatment. The full extent of Davis's involvement in the saying that Cardinal Franciszek Macharski of Krakow, Po­ CIA project may never be known, because the CIA's chief land was "repugnant" for blaming the Coalition of Concern chemist, Dr. Sidney Gottlieb, shredded millions of pages of for "lack of respect for the nuns and for their human and MK-Ultra records in 1972 at the behest of outgoing CIA Christian dignity" and for failure to respect "the symbols of director Richard Helms. faith and piety" through "attempts at taking [the convent] It can be assumed, however, that Davis's services were over." Rabbi Weiss called "upon Jewish leaders to freeze appreciated, because following his transfer to Indianapolis dialogue with the Vatican" until it removed the convent. In in the mid-1960s, he became one of the first patrons of the an article in the New York Post he claimed that Pope John Rev. Jim Jones and his People's Temple-what several au­ Paul II and the Vatican had done nothing to protect Jews thors have described as another Anglo-American Occult Bu­ from theNazis . reau "project." Davis was joined in that effort by Episcopal On Aug. 15, 1989, Elan Steinberg, an aide to Edgar priest and later Bishop Paul Moore, offspring of the same Bronfman, denounced the Pope for anti-Semitism arising patrician Moore family that has heavily funded the ADL over out of the Pope's attempts to "de-Judaize the Holocaust." the past several decades. Moore later moved to New York

48 Feature EIR May 18, 1990 City where he has presided over the Cathedral of St. John the in the post- 1978 "Get LaRouche" drive, and worked for a Divine, a notorious center of New Age and outright Satanic mob-run weekly on the East Side of Manhattan, Our Town . cultism, as well as terrorism. (For years the New York City In 1978, Pehme wrote for Our Town a glowing piece on the Police Department's Arson and Explosives Unit identified Foundation Faith of the Millennium, formerly the Process the cathedral as a safehouse for the FALN , a Puerto Rican Church of the Final Judgment. This outright Satanic outfit terrorist groupthat carried out dozens of bomb attacks in the had been so closely linked to the Manson Family murders on Metropolitan areaduring the 1970s.) the West Coast in 1969 that they were forced to relocate their (In 1978, as the ADL launched its Big Lie campaign operations back East and change their name . According to branding Lyndon LaRouche as an "anti-Semite," Canon The Ultimate Evil by Maury Terry , which is an account of West, a top aide to Bishop Moore at the Episcopal Archdio­ the 1976-77 "Son of Sam" murders in New York, the Process cese, confided to a visitor that they had "gotten the Jews" to Church, now based out of Westchester County, was suspect­ take care of LaRouche, an indiCation that the relationship ed of links to those ritualistic killings as well. between the ADL and the blueblood WASP establishment Another person who ran much deeper than the Moore-Davis tie.) turned up with the Our Town In Indianapolis, Davis and Moore sponsored Jim Jones rag controlled by mobster Ed onto a number of community boards . Davis personally ar­ Kayatt, was Dennis King, a ranged the sale of his own synagogue to Jones and arranged protege of Maurice Davis and the mortgage for what would be the first People's Temple. author of hate literature against When Davis moved to the New York area shortly after Lyndon LaRouche. King pub­ Jones relocated his followers to San Francisco, the rabbi, by lished one of his nastiest slan­ now an active figure in ADL circles, became one of the first ders against LaRouche in the religious figures to warnabout the dangerous proliferation of pages of High Times maga­ Dennis King coercivecults . But far from being a Damascus Road conver­ zine, the voice of the dope le­ sion, Davis's new profile as an anti-cult crusader merely galization lobby and drug paraphernalia industry . King's represented a continuation of his involvement in the Occult most intimate collaborator in the LaRouche-bashing effort, Bureau efforts. Along with other MK-Ultra veterans such as which mushroomed into a full-scale government frameup Dr. Louis Jolyon West and Robert J. Lifton , Davis launched strike force, was Charles "Chip" Berlet, for years the Wash­ the "deprogramming" movement in the early 1970s as the ington, D.C. bureau chief of High Times and an activist in "solution" to the mushrooming problem of coercive cults NORML, the official dope legalization lobby. which Davis himself had helped to foster. Over the next By 1979, King was a fu ll-time asset of the ADL's Fact­ decade, hundreds of members of pseudo-religion and therapy Finding Division and an anti-LaRouche informant to a vari­ cults like the Unification Church, the Church of Scientology, ety of federal and state agencies and prosecutors. Throughout The Way International, est, and the Hare Krishnas were kid­ that period, King was a member of the Humanist Society of naped and subjected to grueling round-the-clock ego strip­ New York, a secular humanist club linked to the Society ping, physical abuse, and other forms of behavior modifica­ for Psychical Research, SIECUS (the radical sex education tion�ften no different than the treatment they received movement) , and other New Age kook outfits. when they were inside the cults. In nearly every instance, the The ADL links to explicitly pro-Satanist circles was no parents of the cult members paid through the teeth for the low-level effort . ADL mogul Edgar Bronfman has been asso­ kidnaping services provided by Davis and his collaborators . ciated with this project since no later than April 17, 1989, when he and Britain's Prince Philip launched the Sacred The 'Son of Sam,' and Dennis King Literature Trust, an effort aimed at publicizing the religious In 1974, Davis founded Citizens Engaged in Reuniting foundations of ecology and environmentalism-i.e., the re­ Families (CERF), a deprogrammers' front which later vival of Mother Earth and other forms of paganism. At a merged into the two major anti-cult agencies, the American United Nations press conference in New York City on that Family Foundation and the Cult Awareness Network. Capi­ date , Bronfman aide Rabbi Arthur Hertzberg and Prince talizing on the post-Jonestown reaction, the ADL established Philip's spokesman Martin Palmer announced the project. a full-time anti-cult center, housed at the Washington, D.C. Palmer's numerous writings on various aspects of pagan and headquartersof the B'nai B'rith and run by Esther Dietz and gnostic theology are published by the Lucis Trust-formerly Asya Komm. The Cult Center of B'nai B'rith maintained the Lucifer Trust-an elite group which grew out of the 19th­ joint offices with the Cult Awareness Network. In this way, century Theosophy movement. As for Rabbi Hertzberg, he the ADL established formal , ongoing links to the AFF/CAN, first gained attention at a conference in Assisi, Italy in 1986, which continue through to the present. where he advocated the revival of the gnostic Jewish Cabala. Among Davis' employees in CERF were Dennis King The proposal for the Sacred Literature Trust was first floated and Kalev Pehme, both of whom later played prominent roles at that Assisi conference.

EIR May 18, 1990 Feature 49 �ITillInternational

Baltic republics fear Bush sellout at summit

by Konstantin George

The leaders of the Baltic republics, struggling to achieve in republics formed a "human chain" extending across Latvia, fact their declared independence from Moscow, fear the Estonia, and Lithuania. This peaceful protest was an eloquent worst from Mikhail Gorbachov and George Bush. They fear harbinger of the events of the past weeks, which have thrown that the May 30 Bush-Gorbachov Washington summit will to the winds all the calculations of the Kremlin imperialists finalizethe Bush administration's sellout of the Baltic repub­ about controlling their subjects through "blood and soil" eth­ lics, by giving Moscow a "green light" to do as it pleases with nic allegiances and setting national groups against each other. Lithuania, Latvia, and Estonia. The pre-summit warningwas Although for the past 50 years the United States has sounded loud and clear by the president of independent Lithu­ officiallyrefused to recognize the forced incorporationof the ania, Vytautas Landsbergis, in a May 9 interview with three small states on the Baltic Sea borderingPoland , Russia, · Expressen, Sweden's largest circulation daily. and Finland, into the Soviet empire, nevertheless, the U.S. The interview was run with a banner headline, quoting Bush administration has refused to take the most obvious Landsbergis: "The West is Helping the Soviets to Crush our steps since Lithuania, following its firstfree elections in half Freedom," and contains Landsbergis's strongest denuncia­ a century, declared independence from Moscow last March tions to date of the U.S.-Soviet condominium policies, re­ 11. Allegedly out of a fear of weakening Mikhail Gorba­ sponsible for the global isolation of the Baltic republics. chov's hold on power in Moscow, the United States has Commenting on Gorbachov' s ultimatum threat of reprisals failed to extend full diplomatic recognition to Vilnius and to against Lithuania's neighbor, Latvia, after it had declared use its own considerable economic weapons to force the independence on May 4, Landsbergis said: "I wasn't sur­ Kremlin to respect the self-determination and sovereignty of prised. I understand that Gorbachov has received permission the Baltic states. to crush Baltic freedom. Therefore, even the form chosen by the Latvians in their striving for freedom was not acceptable Lithuania faces supply crisis to him." In his interview to the Swedish daily, Landsbergis noted, Landsbergis was referring to the fact that for Latvia, full that as the summit date approaches, the situation is becoming independence will come after a two-year transitional period, more and more tense in the Baltic states: "And this tension and will not take effect immediately as was the case with depends on the superpowers. Gorbachov can do what he is Lithuania. doing to Lithuania and the Westerncountries agree." Lands­ Lithuania, Latvia, and Estonia were annexed to the Sovi­ berg is then detailed how Gorbachov and the Soviet leader­ et Union in 1940 as a consequence of the secret protocols of ship will move through the remainder of May, to bring the the infamous 1939 "Hitler-Stalin Pact" in which the Nazi and crisis in Lithuania to a head, timed with the summit and the Communist dictators stunned the world by signing a mutual Bush sellout. non-aggression treaty. On Aug. 23, 1989, the 50th anniver­ First, the supply crisis in Lithuania will become very sary of that shameful treaty, 1 million citizens of the three tiny critical by the end of May: "Then we will have no other fuel

50 International EIR May 18, 1990 than that which we have been able to buy at high prices in of freedom lit in Vilnius, to the tumultuous cheers of the Belorussia and in Ukraine .. ..But we will see to it that food Latvian deputies. transport and ambulances still operate. The worst thing is Latvia's support was not confined to mere words. An perhaps not that the fuel will run out, but that the lack of raw accompanying resolution stated that Latvia, which borders materials will force us to close the factories." on Lithuania, would break the blockade and provide Lithua­ Together with the fuel and energy crisis coming to a head nia with sorely needed goods. On May 8, Estonia's parlia­ by around May 30, Landsbergis forecast that Moscow will ment followed with the third Baltic Declaration of Indepen­ step up its targeting of Lithuania's food-processing industry: dence, and pledge to support Lithuania. Thus, almost over­ "Then comes the finaltest for Lithuania. Probably there will night a Baltic united front behind Lithuania had emerged, be organized demonstrations of displeased non-Lithuanians, and the rage of the tyrant Gorbachov knew no limits. either in Vilnius or Klaipeda [Me mel] . There will be attempts Gorbachov is in a comer, unless he can get Bush's back­ to cause discontent among the peasants, by ensuring that ing for a totally resealing all of Lithuania's borders , which there isn't enough tractor fuel ." means concretely, sealing off Lithuania from its sister Baltic Landsbergis closed the interview with a final warningto republics. If Bush would not play Neville Chamberlain to the world of what evil is being planned by the superpower Hitler-Gorbachov, then the Kremlin Fuhrer would either condominium at the May 30 summit: "If the May 30 summit have to quickly find a face-saving way of backing down succeeds, it will mean that Gorbachov receives a letter of against Lithuania, or would have to extend the blockade to complete indulgence. He can then seal off the sea and all encompass all three Baltic republics, an act that would have borders to us. " devastating consequences for the entire Soviet economy. Gorbachov, in his rage over Latvia's independence decla­ Baltic states line up behind Lithuania ration, threatened to proceed with the latter course. He threat­ The very last sentence we have quoted from the Lands­ ened, as reported by the Soviet news agency TASS on May bergis interview, where the Lithuanian President warnsthat 5, "retaliatory measures ...of a political, economic and Bush is planning to allow Gorbachov to "seal offthe sea and administrative character" against Latvia, unless that republic all borders to us," contain the crucial physical detail of the reverted back to its pre-May 4 status. Whatever he does, he planned summit sellout of Lithuania. For without such a can only do from outside Latvia. It is a measure of how deep Washington-endorsed sealing off of all borders, Gorba­ the revolutionary process has become in the entire empire chov's blockade strategy against Lithuania will have failed, that Gorbachov can do nothing politically inside Latvia, de­ and the failure will have become evident to the entire world spite the fact that nearly 50% of the republic's population are soon after the May 30 condominium summit. ethnic Russians, and this ethnic base was what the Moscow Events in the Baltic region back up this perspective. Be­ rulers were counting on to oppose Latvia's break from the hind the bellicose threats and ultimata, Mikhail Gorbachov's Russian center. blockade strategy, of starving Lithuania into submission and This development was reflected in an opinion poll, pub­ intimidating the other Baltic republics into indefinitelypost­ lished on April 30 in the Soviet government daily Izvestia, poning independence, was already in a shambles by May 8, which admitted that 45% of the Russians living in Latvia when Estonia followed the move taken by Latvia on May 4, favor immediate independence. In response to the question, with its own declaration of independence. "If Latvia became independent, would you remain in Latvia Concerning Lithuania itself, Moscow had hoped that the or emigrate to Russia?" nearly 70% of the Russians said they blockade would widen the pre-March 11, or pre-Declaration would definitelyremain in an independent Latvia. of Independence splits that had existed in the Lithuanian All these events and facts show the depth of hope and electorate, concerning the timetable for independence, and potentiallyexcellent prospects for these nations, who as vic­ thus break the popular will to resist. Instead, the blockade tims of the Hitler-Stalin Pact, have lived under brutal Soviet backfired, by uniting all Lithuanians as never before behind occupation for 50 years. This very hope now threatens to be President Landsbergis. Beyond that, the blockade forced the crushed via the May 30 summit sellout. other Baltic republics, despite previous reservations and hesi­ Every single person who at one time or another had ex­ tations, off the fence and into solid support for embattled pressed the conviction, "If I had been around in 1938, I Lithuania and its brave President. would have done something to stop the Munich rape of The turning point came on May 4, when the parliament Czechoslovakia and stop Hitler in his tracks," now has the of Latvia, with Landsbergis present in the chamber, voted opportunity to speak out and act to stop the planned super­ up Latvia's Declaration of Independence by a two-thirds ma­ power rape of the Baltic. If the sellout is clinched at the jority, serving Moscow notice that Latvia was demanding summit, the brave peoples of the Baltic will pay a high and that the "transition period" to achieving full independence be bitter price today, the aggressor's appetite will be whetted, a maximum of two years. Landsbergis had come to the Latvi­ and in the not too distant future, we will all be paying a far an parliament with a Lithuanian delegation carrying a torch higher price for not having acted in time.

EIR May 18, 1990 International 51 Gorbachov courts Sovietmilit ary as pillar of stabilityfo r the empire by Konstantin George

On May 9, under the approving eye of Soviet President Mik­ at "sufficient strength." hail Gorbachov, who stood on the Lenin Mausoleum review­ The evening before, Gorbachov delivered a televised ad­ ing stand while Defense Minister Dmitri Yazov, newly pro­ dress for the 45th anniversary celebration which repeatedly moted to Marshal of the Soviet Union, stood on his right, a stressed that the Soviet wartime victory was due to the "unity" military parade spectacle was staged in Moscow's Red and "sacrifices"of the entire population which rallied to sup­ Square. The parade commemorated the 45th anniversary of port the soldiers at the front. He called the war "a genuine the Soviet Union's victory over Nazi Gennany, and was the People's War," where "everyone" contributed to victory, first Moscow May 9 military parade held in five years. The from the soldier at the front, to those working "in the rear," parade featured a mix of World War II military hardware, down to "the slandered and innocent, unjustly convicted including columns of T-34 tanks and BM-13 multi-barrel camp inmates in the mines ofVorkuta and Magadan." Gorba­ rocket launchers, the famous "Stalin Organs," followed by chov then said: "Today, we are again at the crossroads," a display of modem weaponry. This included the strictly and called for the same wartime qualities of "unity" and offensive weapon, the SS-21 short-range nuclear missile, "sacrifices"to overcome the present crisis. and two types of hardware never before put on public display: The most modem version of the T-80 tank, and the SA-lO Gorbachov echoes military attack on Stalin anti-aircraftmissile . Gorbachov's speechwas qne that could have been given The event and the speeches delivered by Gorbachov and by any Soviet military leader, especially when he blasted the Yazov provided the final piece in a chain of evidence since pre-war "blunders" and crimes of Josef Stalin. The attack on March 15, ridiculing the well-cultivated disinfonnationmyth Stalin has been reported in thl! Western media, but not the of "tensions" and "conflict"between Gorbachov and the mili­ detailed fonnulations, which � were identical to the attacks tary command widespread in the Westernmedia on the eve of the Soviet military command over the past two years. of the May 30 Bush-Gorbachov Washington summit. Gorbachov declared that Stalin had made "the most flagrant Every step taken by Gorbachov leading up to May 9, has strategic blunders . . . which in the opening phase of the been to accommodate political demands by the military . This war, cost millions of lives." He listed the blunders, singling began with the Moscow parade itself, which the military had out precisely those which have been most stressed by Soviet demanded, and which Gorbachov had authorized through a military figures, including the fonner chief of the Soviet presidential decree to symbolize the Anny's role as the "sav­ General Staff, Marshal Nikolai Ogarkov: 1) The pre-war ior" and sole pillar of Great Russian institutional stability, terror purges killed or imprisoned "40,000 officers," which along with military parades in the capitals of all 14 non­ caused "the decapitation" of the militarycommand . 2) Stalin Russian republics. These too, were held on May 9 with Soviet had blundered by overrulingtbe militaryand not accelerating occupation troops, missiles, tanks, and artillery parading in the pre-war buildup of the m(J)st modem tanks and aircraft. the Baltic capitals of Vilnius (Lithuania), Riga (Latvia), and 3) What Stalin had gained through the 1939 Hitler-Stalin Tallinn (Estonia) , in the Transcaucasus capitals of Tbilisi Pact-time to prepare for war, and territorial gains-"at the (Georgia), Yerevan (Annenia), and Baku (Azerbaijan), and price of enonnous political and moral cost," was "lost" in the Ukrainian capital of Kiev, as reminders that Moscow through his blunders in ignoring the intelligence provided has no intention of releasing its hold over the Captive Na­ by the U.S.S.R. 's intelligence services (including military tions. intelligence, or GRU), who h�d infonned him of the coming Yazov, in his May 9 speech, began by praising Gorba­ invasion. chov, citing the "positive changes in world politics" which Gorbachov's speech is of �xtreme importance. The Sovi­ have occurred "under the influenceof the policy of perestroi­ et President was declaring on television to the nation that the ka." Though these changes "are not yet irreversible," and common denominator of Stalin's blunders and crimes was therefore, "the danger of war continues to exist ...in these that Stalin had decimated the officers' corps, repeatedly re­ circumstances," it is necessary to keep "defensive strength" fused to listen to the military , ignored their advice and warn-

52 International EIR May 18, 1990 ings, and refused to give them a say in determining policy. to Marshal of the Soviet Union. This was the firstpromotion The message could not be clearer. He, Gorbachov, will listen to Marshal of the Soviet Union by Gorbachov, and the first to the military, will grant them a say on policy, and will grant since March 1983 when four generals, including then-chief their demands in the interest of Russia. of the U.S.S.R. General Staff, Nikolai Ogarkov, were pro­ Since his March 15 election to the U.S.S.R. presidency moted to that rank by the late Yuri Andropov. Another Krem­ giving him dictatorial powers, Gorbachov has gone out of linologist dogma, that Gorbachov would never promote a his way to cultivate a close, high-publicity relationship with general to Marshal of the Soviet Union, had been shattered. the Soviet military leadership. The post-March 15 record of The Yazov promotion accompanied two others decreed events has been, for the most part, meticulously censored by by Gorbachov. Singled out for promotion to General of the Westernmedia to create the grounds for the Bush administra­ Army was Gen. Col. Mahmoud Gareyev, a deputy chief of tion's "we must save the endangered Gorbachov" pre-summit the General Staff, leading protege of Marshal Ogarkov , and appeasement stance. the General Staffauthor behind the Soviet post-nuclear, high­ tech weapons new offensive doctrine featuring the use of Showering gifts on military Airborne and spetsnaz forces. Adm. K.V. Makarov, the Gorbachov's very first act as President was to meet on chief of the Navy's Main Staff, was also promoted to Admiral the same day he was elected, March 15, with the more than of the Fleet, the highest rank in the Navy. Consistent with 100 military officers, including nearly every top Russian the promotion of Gareyev, the Airborne and spetsnaz forces military official and commander, who are deputies in the themselves were granted a special honor when Gorbachov U.S.S.R. Congress of People's Deputies. That event was presented, from among all military commanders, the award given wide pUblicity in the Soviet media, with a well-chosen "In Service to the Motherland and Armed Forces of the photo in the Soviet press showing a beaming Gorbachov U.S.S.R." to Gen. Col. V.A. Achalov, the commander of standing next to Gen. Col. Boris Gromov, the last Soviet the Soviet Airborne Forces. military commander in Afghanistan. All these Gorbachov decrees were covered front page in On March 18, Gorbachov did what nearly every Western the Defense Ministry daily Krasnaya Zvezda on May 1, but Kremlinologistsaid he would never do: He appointed a mili­ received no coverage in any Western media. tary man, Defense Minister Yazov, to the U.S.S.R. Presi­ dential Council-what used to be called "Politburo" status, Gorbachov stands with Ogarkov as the Presidential Council has replaced the party Politburo On May 7, Gorbachov, standing next to Marshal Ogar­ as the U.S.S.R. 's ruling institution. In fillingthe Presidential kov and Defense Minister Yazov, addressed the All-Union Council, Gorbachov created a second slot, via the back door, Council of War and Labor Veterans' organization, opening for the militarythrough the appointment of Interior Minister the 45th anniversary media spectacle. The retired Ogarkov Vadim Bakatin. The Interior Ministry controls the 350,000 was present in his new capacity as chairman of that organiza­ Interior Troops, whose elite units composed of Army Air­ tion, a position he was given on March 16 after Gorbachov borne and spetsnaz veterans have been notorious in the sup­ became President, and a position which has returned him to pression of national freedom movements in the Russian em­ public prominence. This occasion was the first time ever pire. Bakatin is a civilian, but "his" Interior Troops are under that Gorbachov had appeared alongside Ogarkov . Again, the command of Army Gen. Col. Yuri Shatalin. Legal fic­ Gorbachov said what the military wanted to hear. He tions aside, the Interior Troops form a de facto extension of launched a fierce attack against "separatism," and the the Army. "abuse" of "glasnost" for "nationalist-extremist ends." Gor­ Gorbachov's next move came on March 20, when the bachov denounced the "extreme slogans" of the May Day institution of political organs and political officers for the demonstration, claiming that they were "proof' that "the Interior Ministry and Interior Troops was abolished. The inspirers themselves" see that "their time is running out." action foreshadows a parallel move expected later this year Gorbachov went out of his way to praise the military and the concerning the structure of political officers in the Armed way the entire nation united to win the war: "The Soviet Forces. Gorbachov had thus taken the firststep towards a goal people admire the feat carried out by the soldiers at the front that no other Soviet leader had even dared to contemplate­ and those who worked in the rear in those difficult years." freeing the military, for the firsttime in Soviet history, from Returning to the present, Gorbachov declared that "the time the system of party control so hated by the military command­ has come" to adopt "major decisions" on the economy, and ers. By this move alone, he had signaled his support for the on "inter-ethnic relations." military to attain its prime demand-real political power in Gorbachov's adaptation to the military will continue. its own right to co-determine Soviet policy. Both for reasons of preserving his own power and to build Gorbachov accelerated the political upgrading of the mil­ up the military as the only pillar of stability possible in the itary on April 29, when he issued a presidential decreepro­ dissolution confronting "Czar" Gorbachov's empire, the moting Defense Minister Yazov from General of the Army Kremlin leader has no other recourse, and he knows it.

EIR May 18, 1990 International 53 Carlos Andres Perez serves as Kissinger's Socialist Tr oj an horse by Gretchen Small

Cuban dictator Fidel Castro may have been relegated to the it. No. Nicaragua is following the good path of understand­ doghouse of the emerging Anglo-Soviet condominium, but ing," he told reportersApril 27. Moscow's armed bands of terrorists in the Western Hemi­ The Venezuelan daily Ultimas Noticias reported on May sphere have a new protector: Carlos Andres Perez, the social 3 that Perez had consulted withiKissinger on his Nicaraguan democratic President of Venezuela. Providing able assis­ efforts, and informed him that he considered the reappoint­ tance to Perez in this endeavor, with the usual lucrative remu­ ment of General Ortega as positive and necessary. "It is neration for his efforts , is none other than Henry Kissinger. known that Kissinger showed signs of agreement with these At a point when communist tyrannies are suffering defeat ideas of President Perez, and he even pointed out that, ac­ around the world, Perez and Kissinger have set out to force cording to his criteria, the President could be characterized governmentsof lbero-Americato hand the communists more as one of the architects of the process of development which power than they could ever win on the battlefield, by estab­ has begun in Nicaragua," Ultimas Noticias reported. lishing coalition governments with them. Perez helped facilitate the ' Sandinistas original seizure Nicaragua, El Salvador, and Venezuela's neighbor, Co­ of power in 1979 with military, economic, and diplomatic lombia, have been targeted first in this plan. support. Immediately upon his returnfrom the United States this year, CAP (as Perez is known at home) made clear that stm the Sandinista's godfather by his efforts to ensure that the: Sandinista machine remains Nicaraguan voters delivered a sharp defeat at the polls intact today, he intends to facilitate their return to power. last February to Moscow's allies in Nicaragua, the gnostic On May 6, CAP served a$ "godfather" at the Caracas Sandinistas. But when President Violeta Chamorro tookof­ baptism for a newly released book of poetry, customary for fice in place of the Sandinistas in April, Perez and Kissinger authors in Venezuela, complete with godfathers and cham­ moved quickly to ensureshe did not use her popular mandate pagne. CAP poured champagne over The Awaited Ceremo­ to dismantle the Sandinistas' extensive military and political ny, written by the Sandinistas' former minister of theinterior, apparatus in the country . Tomas Borge. Standing proudly next to Borge, who oversaw Perez accepts creditfor convincing Chamorroto take her the details of the Sandinista dictatorship for 10 years, CAP biggest step in maintaining the Sandinista power base, her announced that he had decided to attend in order to show his surprisingreappointment of Sandinista Gen. Humberto Orte­ support for his friend of so many years . ga as commander of Nicaragua's Armed Forces. Had Borge changed his goals? On the same day , the Chamorro's "most important outside friend is President Venezuelan daily El Nacional published an interview with Carlos Andres Perez of Venezuela, whom she met when she Borge in which he declared that the project for world social­ and her husband were living in exile 30 years ago," the New ism has not failed. Defending Soviet dictator Mikhail Gorba­ York Times reported April 30. "Perez's unusual influence chov and "his friend" Fidel Castro, Borge promised that the with the new Nicaraguan leader has not been lost on the Sandinistas plan to return to power in Nicaragua soon, by departingSandinista President Daniel Ortega, and his broth­ "putting a miniskirt on socialism," as the Russians had ad­ er, General Ortega. On the eve of Chamorro' s inauguration, vised them to do many years ago. the brothers are believed to have approached Mr. Perez di­ Nicaragua's armed allies in Central America also re­ rectlyfor his support of Chamorro' decisions to leave General ceived an unexpected boost from the Chamorro government. Ortega in power-a move that was under heated attack," the A happy spokesman for the Farabundo Marti Liberation paper noted. Front (FMLN) of El Salvador, Salvador Samayoa, an­ Visiting Washington, D.C. shortly thereafter, Perez de­ nounced on May 1 that the FMLN had been given permission fended the maintenance of Sandinista control over the Nica­ to keep open its Nicaraguan offices. Admitting freely that raguan Army as what will "guarantee" peace in Nicaragua. the FMLN had been arranging arms shipments through the "Only a very profound sectarianism could believe that the Sandinista government, Samayba cooed that now "our activi­ solution in Nicaragua would be a violent rupture between the ty will be more discreet," promising with a straightface that group which won the elections and Sandinismo which lost now the terrorists would only do "political work."

54 International EIR May 18, 1990 CAP pokes nose into Colombia that his friend Carter had also shown interest in taking part Flushed with his success in preserving Sandinista control in "peace efforts" in Colombia. , over the Armed Forces in Nicaragua, Perez now appears to Naturally, the narco-terrorist alliance had already an­ be turning his sights on Colombia. His efforts to destabilize nounced the conditions which they expect their friends to Colombia will, of course, put that country's narco-terrorist demand from Colombia's government in return for their par­ forces into play on both sides of the Colombia-Venezuela ticipating in talks. On April 27 , the CNG demanded changes border. It is no coincidence that CAP has supported gnostic in Colombia's constitution, a ceasefire, and the presence of terrorist forces inside Venezuela, associated with congress­ international "observers" to guarantee the government fol­ man Walter Marquez. lows orders . In fact, Carlos Andres has used his ties with the narco­ Perez's "offer" was rejected sharply in Colombia. Presi­ terrorist apparatus to meddle in Colombia's internal affairs dent Virgilio Barco responded that his nation did not need its for some time. In mid-April, he met with the directorate of the neighbor meddling in internalmatters . "We are dealing with April 19 movement (M-19) for a series of strategy sessions our own problems. In no way do we need mediation. We in Caracas. CAP hailed the M-19 for declaring that it had Colombians can sort it out," Barco told reporters on May 2. abandoned terrorism in order to wage political warfare; but The leading presidential candidate in Colombia's upcoming his allies made no pretense of having broken with the cocaine elections, Cesar Gaviria, also rejected the idea, stating that cartels who hired them in 1985 to assault Colombia's Justice there is no need to "internationalize" Colombian affairs . Palace and murder Supreme Court judges. The centerpiece of their "political" campaign is drug legalization and de­ Just a matter of business? mands that the government"negotiate" with the drugcart els. From Moscow's standpoint, Perez, with his friends of Now it appears Perez is being wooed by the oldest and "enormous weight in U . S. society," can provide lbero-Amer­ most powerful of Colombia's narco-terrorist armies, the ica's narco-terrorists with better protection than Fidel Cas� Communist Party's Revolutionary Armed Forces of Colom­ ever could. Indeed, CAP met with President Bush after se­ bia (FARC). In existence since the 1940s, the FARC enor­ curing General Ortega's post as army commander, and mously increased its capabilities in the last half of the 1980s emerged from his meeting to report that he and Bush had by moving in on the drug trade . Last year, Colombia's mili­ discussed Central America's problems . "I am very pleased tary estimated that the FARC cocaine interests-dubbed the and satisfiedto be able to say that President Bush and I fully La Uribe Cartel afterthe town where the FARC has its head­ agreed on these matters ," he announced at an April 27 press quarters-are equal or greater in scopeto the economic pow­ conference. er of the Cali Cartel. Perez was welcomed in the United States in late April as Jacobo Arenas, the FARC's 64-year-old ideologue and a model debtor who has placed his nation's resources up for long-standing military leader, announced in an April 28 inter­ sale at rock-bottom prices. He was accompanied at all times view with Colombia's Carac61 radio chain, that the FARC by Gustavo Cisneros, Rockefeller's favorite Venezuelan bil­ has asked Perezand his buddy, former U.S. President Jimmy lionaire, who sits on the board of several U.S. corporations, Carter, to intercede with the Colombian government on be­ including Chase Manhattan Bank, Beatrice Foods, and Pan half of the Guerrilla Coordinating Group (CNG). Joining American World Airways. with the Moscow-allied FARC in the CNG are the Maoist Perez also verifiedhis association with the FARC, before People's Liberation Army (EPL) and the Castroite National heading off to a breakfast at Kissinger's home. Among those Liberation Army (ELN) , which divides its time between joining the Venezuelans at Kissinger's was Wall Street Jo ur­ blowing up oil pipelines and kidnaping or murdering oppo­ nat editor Robert Bartley, Kissinger Associates directorAlan nents. Batkin, American International Groupchief Maurice Green­ Perez "wants to make a great contribution to the peace berg, and Chase Manhattan president Thomas Lebrecque. process in Colombia, and he is talking to his many friends in The Bush administration was represented by Commerce Sec­ the world so that they contribute to facing the problem of retary Robert Mosbacher. peace," Arenas said, adding that the CNG was asking un­ At the end of the meeting, Perez announced that his gov­ named European statesmen and "people of enormous weight ernment had hired Kissinger, along with "the presidents of in U. S. society to take an interest in our problems so we don't other important businesses such as Toyota," to establish an continue depending on advisers of the present government . Advisers' Council on Foreign Investment. who don't know how to manage politics." A pleased Kissinger said Perez is "an old friend of mine, Perez, interviewed from New York City on the proposal who has worked so much for Venezuela and for all the Ameri­ by Carac61, confirmed that he was already an advocate for cas .... Venezuela is a country which offers much hope the FARC-led coalition. "We are ready to do anything in our for investment: The reforms which President Perez and his powerto open afrank dialogue between the government and government is executing are going to foster foreign invest­ sectors in opposition and the guerrillas," he said. He added ment in Venezuela," he promised.

EIR May 18, 1990 International 55 Colombiandrug lobby blames military for politicalassass inations by Jose Restrepo

FonnerLiberal Party ex-President Alfonso L6pez Michelsen for removing all leading police chiefs: National Police head has publicly blamed Colombia's military for the deaths of Miguel Antonio Gomez Padilla and his deputy chief Carlos three presidential candidates, and is demanding a "reorgani­ Arturo Casadiego Torrado, political police (DAS) chief Mi­ zation" of that nation's defense and security forces. Lopez is guel Maza Marquez, and the head of the judicial police Oscar infamous for having met with the drug cartels-the so-called Pelaez, who, according to the Extraditables, "prevented the "Extraditables"-{}nMay 6, 1984, one week after their mur­ President from establishing the peace with our organization." der of the anti-drug Justice Minister Rodrigo Lara Bonilla. El Espectador, Colombia;'s most courageous newspaper In January 1990, just months after the mafiamurder of front­ in opposing the drug mafia, succinctly answered the drug running presidential candidate Luis Carlos Galan, L6pez lobby's propaganda barrage (j)n April 30: "Ex-President L6- again went public about his meeting with cartel lawyer Guido pez Michelsen proposes the reorganization of the state's Pub­ Parra, in order to negotiate a pact between the Extraditables lic Forces and intelligence se�ices. Immediately, the Extra­ andthe government. ditables demand . . . the heads of Generals Maza Marquez It is perhaps no coincidence that Lopez's "reorganiza­ and Gomez Padilla, precisely the leading figures in the anti­ tion" proposal was sounded at the same time that Conserva­ drug fight. Strange, suspicious coincidence," concluded El tive Party Sen. Alvaro Leyva Duran, another would-be go­ Espectador. betweenfor the drug cartels and a Lopez co-thinker, issued The coincidence is not on� between Lopez and the Extra­ a complementary call for a deal with the Moscow-run FARC ditables. The M-19 has refused to accuse cartel chieftain narco-terrorists, whereby they would "demobilize" under a Escobar of the murder of their leader Pizarro, despite clear­ government amnesty that would permit them to retain their cut evidence that Pizarro's death was ordered by the drug weapons and serve as a private domestic militia to guard the mafia in order to wreak havoc with the electoral process­ nation's borders. Leyva did not say what-{}r if-the military perhaps even forcing the suspension of May 27 presidential would have anything to say about such an arrangement. elections-and to pave the way for the drug lobby's assault on the military, the sole remaining bastion of the anti-drug A 'strange coincidence' effort . On April 26, an assassin hired by Medellin cartel chief­ Antonio NavarroWolf, the M-19's new presidential can­ tain Pablo Escobar killed Carlos Pizarro Leon-Gomez, presi­ didate, openly covered up for the traffickers, saying that his dential candidate of the recently legalized narco-terrorist group does not believe the cartel could have done it, because group M-19. The next day, fonner President L6pez said, the M-19 had signed a non-aggression pact with Escobar in "The successive evidence of inefficiency surrounding the 1981. And Pizarro's own brother Eduardo publicly blamed deaths of three presidential candidates forces us to consider "certain state sectors" rather than the drug mafia forCarlos the reorganization of the security forces." According to his Pizarro's death. arguments, the "security forces" were responsible for the killings, and not the drug traffickers with whom he has had U.S. hamstrings anti-drug etTort long-standing cozy relations. Lopez also demanded that a The line of L6pez and hill narco-partners-that national civilian be named defense minister, a post historically held militaries are the real threat to democracy in lbero-America, by the military . because they are corrupt an

56 International ElK May 18, 1990 forces be reorganized, even replaced outright, by a suprana­ could somehow be distinguished fromthe criminal drug car­ tional force. tels. The "dialogues" promoted by Betancur resulted in the Sure enough , right in the middle of Colombia's crisis, creation of a new above-ground political party , the Patriotic Bush administration officials stepped forward to make clear Union (UP), by the underground FARC narco-terrorists. that they are toeing that line all the way . On April 28, the While the UP "dialogued," the FARC gained breathing space Los Angeles Times reported that the Bush administration has to reinforce its armed ranks and carve out new territory for decided to block the sale of Cobra helicopters to Colombia, itself. Today, the FARC is considered Colombia's third co­ because they are too "lethal." John Walters , chief of staff to caine cartel, after the Medellin and Cali groups , because of U.S. anti-drug czar William Bennett, told the paper that the its vast drug-trafficking operations. U.S. does not believe the helicopters are "an appropriate At the same time, Betancur ordered the Armed Forces piece of equipment" for Colombia. "This particular weapon to suspend operations against "guerrilla" forces in order to system involves firepowerin excess of anything [we] believe respect "peace agreements" that put the narco-terrorists in is appropriate ." control of whole sections of national territory , zones where To allege that there is a danger in providing "excessive" the national constitution and Colombian law were effectively aid to Colombia's military at this time , is criminally insane. suspended. The legitimacy given the "guerrillas" allowed The drug mob killed 38 policemen in the city of Medellin in them to recruit new people and expand operations, while April alone. Since August 1989, they have detonated at least increasing their legitimacy through thedialogue process. Be­ half a dozen enormous car-bombs in Colombia's cities, and tancur's peace experiments were soon promoted by the U.S. have blown up a civilian airliner in mid-flight. Three presi­ State Department as a model for Central America, especially dential candidates have been killed in this year's electoral for El Salvador. race-so far. Initially, President Barco continued Betancur's policy, Colombian President Virgilio Barcohas respondedto the with some variations. The result was the "legalization" of the latest candidate murder by ordering a doubling in size of the narcoterroristM- 19, the same group whose occupation of the Police's Elite Corps . Leading presidential candidate Cesar Justice Palace in November 1985 led to the total destruction Gaviria-top on the traffickers ' hit list-answered with a of that building, and the executions of half of the Supreme national address calling for renewed attack against the drug Court justices. Although the M-l 9-currently a legal politi­ cartels, no matter the cost. "Our survival as a civilized soci­ cal party-has apparently not retained a part of its armed ety, as a democracy, depends on a monopoly of the [armed] organization, as the FARC did, the group has offered itself as force in the hands of the Colombian State ," said Gaviria. a mediator between the govermment and other "recalcitrant" Gaviria pledged not to yield in the fight against drugs and terrorist groups , and between the govermrnent and the drug narco-terrorism. In a speech transmittednationwide by radio mafia. and television on April 27, he said, "We must punish the On May 7, candidate Gaviria said Colombia should halt narcoterrorists, the terrorists, the assassins, the sponsors of that policy. In a nationally televised speech he argued for paramilitaries, the terrorist guerrillas . . . . It is time for clari­ imposing the reign of law over the narco-terrorists, the para­ ty and for courage, not for negotiations and dialogue with militaries, the assassins, and so-called common criminals. terrorism. It is time to face up to it: The demented attacks of He said: "We are not going to do away withthe guerrillas as which we are victim will admit no course but confrontation. long as they retain their sources of financing. As long as Terrorism must be confronted without concessions, but with we allow them to resort to political dialogue, without the principles. We will fight it until it is defeated , never evading condition that they . . . abandon weapons and violence; as the responsibility of leadership which we claim. . . . long as we give them credit for political changes ....Nor "To fight implies strengthening our spirits for what is to are we going to be successful against the paramilitaries as come and to accept the risk, even as the assassination threat long as there are citizens who believe that the way to confront escalates. The merchants of terror will not. prevail against the the criminal actions of the guerrillas is to promote the same solidarity of the nation," Gaviria promised. "All of Colombia excesses by people organized outside the law. We will have must stand up and be counted. Our responsibility to our no success in the war against the drug trade as long as certain children and to the future is undergoing the test of fire. We sectors and leaders think that the way to confront these orga­ cannot be inferior to our mission." nizations is to respond to their crimes with every kind of concession from society and fromthe government." Gaviria will otTer no deals Gaviria added: "The Colombian Armed Forces must re­ Gaviria's words mean that as soon he is President of cover a legitimate monopoly over force, which is essential Colombia, he will end the most importantmistake the coun­ in any democracy. It is necessary forour military and police try has made in the war on drugs . Since President Belisario forcesto be adequatelysupplied and to have greater collabo­ Betancur (1982-86), the government has sought to "make ration on the part of the civil population. Only thus will their peace" with the so-called "guerrillas," in vain hope that they actions be more effective than they have been in the past. "

ElK May 18, 1990 International 57 Establishment lashes out at Scottish civil rights lawyer by Katharine Kanter

Unrest has broken out in the Scottish legal community over to notice Carroll's existence in the first place. Prominent a complaint for grave professional misconduct served upon criminal lawyers throughout WesternEurope have expressed a Glasgow solicitor known to his colleagues as the most astonishment that Lord Hope singled out as "misconduct" combative civil rights lawyer in the country. It is virtually what is "an everyday occurrence in every court on this con­ unheard of for the most senior judge in Scotland to personally tinent." report a lawyer to the disciplinary tribunal of the profession. No one in Europe, and that includes any potential juror This bolt from Mount Olympus falls from the hand of one able to read and write, could possibly have missed the events David Hope, Lord President of the Court of Sessions and of October 1989, when four Irishmen, known as the "Guild­ Lord Justice General-that is, head of the supreme court of ford Four," who were held for 15 years in English jails on Scotland, and head of its entire judiciary. Its target is John the basis of perjured declarations by the police, had their Carroll, a criminal lawyer working from an office scarcely convictions quashed. Several hundred press articles at the largely than a cupboard, who has drawn to himself consider­ time dealt with the issue of police perjury. able hostile attention from the British government, by win­ So why is Carroll being picked on? Reachedfor comment ning against it a number of criminal cases before the Human in the U.S. federal prison at RQchester, Minnesota, political Rights Court at Strasbourg, France. Carroll, who has paid for these cases largely from his own pocket, also happens to be attached as amicus curiae (friend of the court) to the defense of Lyndon LaRouche, for whom he has appealed to U.S. President Bush demanding U.S. government disclosure of exculpatory evidence that Overturning perjury would free LaRouche. can 'go no fu rther' Police commit 'pious perjury' Lord Hope's writ alleges that "grave professional mis­ To the issue of "pious perjury," we reproduce below a conduct" took place, when Carroll read out to a jury pub­ public statement by Lord Denning, an English law lord lished statements from then-police commissioner Sir David who was Master of the Rolls, and who is now so old McNee, whereby McNee owned to the Royal Commission, that he is allowed to say in public what the Establish­ that the police sometimes commit "pious perjury" in order to ment only dares to think in private. Lord Denning re­ get results. Although the full text of Lord Hope's complaint is fers to the famous case of the "Birmingham Six" Irish­ not yet published, the Edinburgh weekly Scotland on Sunday men, who were appealing against conviction for terror­ reports that Lord Hope described this act by Carroll as "re­ ist offenses on the basis of police misconduct: "If the flecting his own personal opinions" and was susceptible of six men win, it will mean that the police were guilty of provoking a miscarriage of justice. perjury, that they were gUilty of violence and threats, Lord Hope added that he considered it a fundamental rule that the confessions were involuntary and improperly of advocacy, that an advocate "not state his personal opinions admitted in evidence, and that the convictions were on matters of fact." No such rule of advocacy is known to erroneous. This is such an appalling vista, that every exist, and Scots lawyers consulted wonder how Lord Hope, sensible person in the land would say that it cannot be who is not a criminal lawyer, and never sat on the bench right, and this action should go no further." before being elevated to its most august post, even deigned

58 International EIR May 18, 1990 prisoner Lyndon LaRouche noted: "The charge merely plays onto the side of those who might rally to John Carroll's defense. The point is, that the state is out of control, and there are people in Scotland who would also say, that the Dehumanized language state is out of control , that policemen do lie, just as they lie in the United States.. ..Judges condone this, lies and lying. begins rights violations And all on behalf of the cause of pious perjury. Those going afterCarroll pose a very interesting problem for themselves Legal decisions move ever further away from basic in that respect. " principles of natural justice, wrote John Carroll in a paper presented to the Martin LutherKing Tribunal on 'Efficiency' means no civil rights Jan. 14 in Washington, D.C. "The violation of basic Shortly before Lord Hope 's writ was served, on March human right� . . . is often preceded by institutionalized 28, 1990, Carroll won a case for one Joseph Granger in the vilificationof the intended victims . . . people are first European Human Rights Court, whereby the court held that of all dehumanized in language, and we read of them the Human Rights Convention was violated when the Su­ as 'elements,' 'the unemployed' 'factions' ... 'the preme Court Legal Aid Committee denied the accused legal enemy within' . . . . This fashioning of attitude of mind aid to appeal. Were that decision to be binding on the British to correspond with the desires of the manipulators government, tens of millions of pounds for legal aid would reaches into all levels of society, including the person­ have to be disbursed in the very short term. Now , although nel of defense, law and order, lawyers and judges. Lord Hope is by his position head of the entire criminal Propositions founded on natural law principles . . . are justice system of Scotland, he appears to have paid little heed often rubbished by courts, and violations of human to the fact that his courts do not serve only business and rights . . . when committed by or on behalf of a state, finance. are excused in law on little more than a semi-official In his inaugural address as Lord President on Sept. 28, hint that some unspecifiedmatter of securityis connect­ 1989, he stated: "The Scottish courts must play their part in ed with it." serving the increasing and changing demands of the business In the same paper, on the invasion of Panama, community in this country . . . ever greater efficiency and Carroll wrote: "No doubt lawyers will seek to justify economy insofar as these can be combined." the actions in law and the courts will likely supportthe The day before , he told the Glasgow Herald: "The re­ arguments of the state ....Was it necessary to kill, spect in which the public holds its courts, depends partly on maim, injure, and destroy the homes and belongings the integrity of the judges, but also on the efficiency with of so many people to catch one man? Are we to believe which its business is conducted." it really was only to do with drugs, or is the judicial But in the area of criminal law , lives are at stake. If the process being manipulated for ulterior purposes?" accused is to be properly represented, his trial may well be, not "economic and efficient," but a costly, protracted affair. In Britain over the last decade, deep budget cuts for legal aid have caused most first-class lawyers to drop such work al­ have to be very careful that the principles, while they must be most entirely. Or, as statesman LaRouche put it in his speech respected . . . should not stand in the way of progress. I'm not to the Martin Luther King Tribunal on Jan. 14, 1990: "Where one who would regard it with dismay, if a long established there is no economic justice, there is no such thing as civil legal principle of Scots law had to be changed in order to rec­ rights. " ognize that circumstances have altered." Scots law having proven at least adequate to the great Scotland to become a new Hong Kong? days of industrial enterprise in shipbuilding, machine tools, In the background, of course, there may be other elements and steel-all tom down by the free enterprise crowd over on the move. Among the ranks of the Conservative Party, the last decade-what progress can Lord Hope have in mind? a growing faction is convinced that Scotland, which has an Is Scotland to become a new Las Vegas? entirely separate legal system from England, should be forc­ One thing in any event is certain: Against the background ibly cracked open and turnedinto a kind of offshore financial of the independence movement in the Baltic, disquiet stirs in paradise, now that Hong Kong is on the outs. The Scottish London over the likelihood of an upsurge in Scotland; the legal system, with all its flaws, has been a barrier to that. In this absurd "over-kill" in the case of John Carr oll, who is not light, other remarks by Lord Hope, also published by Sept. 28, a political activist, may be one knee-jerk reaction to that 1989 Glasgow Herald, are perhaps relevant: "Scots law, the perceived danger. They forget, that to level cannon at spar­ legal principles, are under increasing pressure both from par­ rows is the surest way to create a folk hero. And He who sees liamentary change and also economic forces, and I think we the sparrow fall, has always had the last word.

EIR May 18, 1990 International 59 Israel and Syria are the main condominium partners in the region; both Moscow and Washington intend to increase the strength of both states, at the expense of others in the region. Ever since U.S. Secretary of State Henry Kissinger and Soviet Foreign Minister Andrei Gromyko negotiated the first Mideasttensions rise phase of detente in the early 1970s, the issue of Soviet Jewish emigration has been used in the most cynical fashion . To asSoviet Jews emigrate some degree, Moscow's shifting policy on allowing Soviet Jews to leave, who justifiably fear Russian anti-Semitism, by Joseph Brewda has served as a barometer of superpowerrelat ions. So, while 29,000 Soviet Jews were allowed to emigrate to the United Current plans by the U.S. and Soviet governments to ship States in 1979, Reagan's announcement of the Strategic De­ some 750,000 to I million Soviet Jews to Israel over the fense Initiative in 1983 and related policies drove the rate coming months and years , may dramatically destabilize an down to less than 500 in 1984. Since the 1986 Reykjavik already tense region. It is expected that all the Soviet Jews summit, emigration has been steadily rising, up to 37,000 in will be settled on the Israeli-occupied West Bank which was 1989. seized fromJordan in the 1967 Arab-Israeli war. The massive The problem from the Israeli standpoint with this emigra­ increase in Jewish settlements on the West Bank is expected tion is that virtually all Soviet Jews have preferred to emigrate to lead to the formal annexation of the occupied territories to the United States rather than Israel. Furthermore , large by Israel as part of a plan for "Greater Israel." On May 5, numbers of Israeli Jews have also fled to the United States King Hussein of Jordan called for an emergency Arab summit throughout the 1970s. The Zionist dream, even for Israelis, to deal with the effects of the influx. is simply not working. Not the least among regional concerns is the way this population boom might trigger a new Arab-Israeli war. The Soviet Jews turned away from U.S. next Israeli government will probably be runby Likud leader To deal with that concern, the Reagan and Bush adminis­ Yitzhak Shamir, but will be dominated by a triumvirate of trations, together with the Gorbachov regime, have em­ Gen. Ariel Sharon, David Levi, and Yitzhak Modai-all ployed a series of cruel measures. fanatically committed to territorial expansion. According to Until recent years , all fleeing Soviet Jews would emigrate some reports , certain strata in the Israeli leadership associat­ through Vienna, where they wouldtypically receive interna­ edwith Sharon may be planning a solution to the "Palestinian tional refugee status. This status would allow them to come problem" once and for all. Their ambitious plan reportedly to the United States without being subject to national quota entails expelling the Palestinians from the West Bank into restrictions. The U. S. Justice Department, partly to deal with Jordan, overthrowing the Jordanian King, and declaring that this "problem," began slandering Austrian President Kurt Jordan is now "Palestine." The West Bank would then be Waldheim as a "Nazi," and put him on a "watch list." As a populated by incoming Soviet Jews. result of this downturn in U.S.-Austrian relations, the chan­ There are currently some 70,000 Jews who live among nel has been constricted. the 1.75 million Palestinians of the West Bank and Gaza Similarly, the opening up of Israeli diplomatic negotia­ Strip. Israel's total Jewish population is approximately 3 tions with Russia has led to arrangementsfor shipping Soviet million. Israeli government spokesmen have projected that and Eastern European Jews to Israel on direct flights . These between 100,000 and 250,000 Soviet Jews will arrive in fleeing Jews are granted immediate Israeli citizenship upon Israel this year. They estimate that as many as 500,000 may their arrival-thereby placing them under restrictive U.S. arrive by 1991. More than 10,000 Soviet Jews arrived in quota allotments. The Bush administration only allows Israel in April 1990,compared to less than a 1,000 in April 20,000 Israelis to emigrate to the U.S. each year-and only 1989. The Israeli Bank of Israel has already called for bor­ those who meet various educational standards. The Bush rowing $2 billion over three years to house these expected administration has also reduced maximum Soviet Jewish em­ immigrants . Meanwhile, the construction of Palestinian igration to the U.S. to a low 30,000 a year. homes on the West Bank has been de facto banned. In short, Washington will accept only a small number of Jewish refugees, and has forced the rest to move to Israel , Soviet Jews used as condominium pawn despite the fact that virtually mme of these refugees want to Thepolicy offunneling Soviet Jewish emigresinto Israel, go there. This was the technique used to build up the Jewish rather than letting them into the United States or elsewhere, population in Palestine, and theinIsra el, in the post-war peri­ is a policy agreed to by both superpowers at the Malta sum­ od. Jews fleeing Europe were denied entry to the United mit, and reflects the strong, if somewhat conflicted relation­ States by the anti-Semitic U.S. Establishment. They had ship which both Moscow and Washington have to Tel Aviv. nowhere else to go.

60 International EIR May 18, 1990 PanamaReport by CarlosWe sley

Did U.S. agents arm Colombian mafias? exiles who had links with [Rodriguez] If Israeli investigators are right, Bush bears part of the blame fo r Gacha and they sent the weapons to Colombia," reported Reuter on May the estimated 7,000 Colombians murdered last year. 9. Herrera was recruited by the U. S. government in 1987, while he was ol. Eduardo Herrera Hassan, who 1989, said he did not learn until later Panama's ambassador to Israel. In an headsC the security forces of the U.S.­ that the groups were tied to the drug Oct. 29, 1989 interview with the New installed Panamanian government­ lords. In another interview published York Times, he said that he was con­ most of whose senior officialsare part­ Oct. 10, Klein was asked: "Do you tacted by State Department official ners of the Colombian cocaine car­ feel any sorrow for what has been William G. Walker and asked to join tels-has conduited Israeli-supplied done in Colombia, and for the death the effort to topple Noriega. He met weapons to Colombia's drug capos. and destruction your students have with officials at the White House, the This information about Herrera, who carried out?" No, he replied: "Is it the Pentagon, the State Department, and admits to being an agent of the U. S. education minister's fault if his stu­ the CIA. Three weeks later he was Central Intelligence Agency, was pro­ dents smoke dope in the schools?" firedby the Panamanian government. vided by Israeli officials investigating Klein also attempted to open a He came to live in the U.S. in May how a large shipment of Israeli-made school in Antigua for training Herre­ 1987, where he was paid $4 ,500 a Uzis, rocket launchers, infrarednight­ ra's anti-Noriega invading force and month by the CIA, out of Panamanian scopes, and other weapons reached other hitmen. The Antiguan govern­ government funds seized by the U. S. Colombian drug lord Gonzalo ment kept the school from opening, as economic warfare. Rodriguez Gacha. The weapons were Klein's lawyer, Yigal Shapiro, told The CIA claims it cut contact with found by Colombian authorities after Reuter on May 9. Presumably the him in April 1989, because his Rodriguez Gacha was killed in a school would operate on a ranch planned invasion could have resulted shoot-out with Colombian police in owned by Maurice Sarfati, an Israeli in the killing of Noriega. At that time December. citizen living in Miami. According to U.S. law banned involvement by the Israel claims its records show the Reuter, the Israeli daily "Yediot Ahar­ U.S. governmentin the murder offor­ armswere sold to the security forces of onot said U.S. authorities suspect Sar­ eign leaders-a ban lifted under the the tiny Caribbean island of Antigua. fati was involved in the murder of an "Thornburgh Doctrine." Antigua denies it, and says its territory Israeli flower seller, Arik Afek, who By the time the CIA supposedly was illegally used to transship the knew about the Klein-Sarfati deal." ended contact with Herrera in April arms. According to the Israeli press, Sarfati , whose name appears as 1989, the Israeli operation headed by the weapons purchase was in fact ar­ the purchaser of record for the weap­ Klein was in place. Using U.S.-based ranged by Lt. Col. Yair Klein (ret.) for ons, got the Antigua ranch with guar­ Panamanian exiles, who were given "Panamanian dissidents-including antees provided by a U.S. government Panama's government funds in the Eduardo Herrera, a former Panamani­ agency, the Overseas Private Invest­ U.S. Treasury, a "consultant" was an ambassador to Israel and now head ment Corporation. OPIC has since re­ hired by the Israeligovernment to help of its police-who wanted to oust portedly put the ranch in receivership. Herrera to build his "Contra" force. [Gen. Manuel] Noriega," reported the According to the Post, "When the The Israeli consultant provided a Washington Post on May 7. United States invaded Panama on "breathtakingly detailed" plan for re­ Last September, even before the Dec. 20 and toppled Noriega, the moving Noriega, reported the Wash­ weapons cache was discovered at the training school's mission became un­ ington Times Jan. 23. ranch of the dead Colombian drug necessary and, according to the [Israe­ After the invasion, command of lord, an arrest warrant was issued li] television account, the Panamanian the police that replaced the Panamani­ against Klein by Colombia's govern­ sponsors requested that the weapons an Defense Forces was first assumed ment, on charges of having trained the be shipped from Antigua to Panama." by a Colonel Armijo. Armijo was drug cartel's hit-squads. While admit­ Colonel Herrera has denied trans­ soon firedto make way for Herrera­ ting that he had hired mercenaries to ferring the weapons to the Colombian on charges of "corruption," based on train "self-defense groups," Klein, in drug lord, but Israeli officials say "the information supplied by "U.S. intelli­ a newspaper interview on Aug. 28, weapons were shipped to Panamanian gence agencies."

EIR May 18, 1990 International 61 Dateline Mexico by Martvilia Carrasco andHugo LOpez Ochoa

Pope calls fo r Ibero-American unity of the resistance to efforts by gnostic In Mexico, the " land of martyrs" of Ibero-American President Plutarco Elias Calles to de­ Catholicism, millions respond to the Pontiffs callfor hope. stroy the Mexican Catholic Church in the 1920s. The Pope told his collaborators how impressed he was by the people's ope John Paul II, who arrived in American family. . . . The common love. "It fillsme with joy to learnthat MexicoP May 6 on a seven-day visit, historic, cultural, and linguistic roots, Mexicans represent one-fourth of the severely criticized "the superficial no less than the religious ones, both Latin American Church," he said analysis" of those who interpret favor and impel the arduous task of upon his arrival. In the firstfour days events in Eastern Europe as the victo­ unity. of his seven-day visit, some 15 mil­ ry of liberal capitalism. Speaking to "I ask that you not be led astray, lion Mexicans turned out to hear and 1 ,500busines smen from across Mexi­ but that you persevere in the construc­ see the Pope . Upon his arrival in Mex­ co, the Pope called on them to fulfill tion of that solidarity, to have confi­ ico City, people filled the streets amid­ the social doctrine of the Church and dence in the capacity of your people st shouts of "John Paul II, the whole undertake true "Latin American soli­ to carry it out. I encourage you to work world loves you," and "Mexico is al­ darity." Spoken to a nation which has untiringly for the unity that will bring ways faithful ." A human barricade been presented by the radical liberals you an unquestionable place on the formed along the 16-kilometer route of the International Monetary Fund as world stage." To Mexico's teachers between the airport and the Basilica of an example the whole Third World he stated his conviction that "the Guadalupe where the first mass was should follow, John Paul II's words Church looks with certain confidence celebrated.' Similar demonstrations shook all of Mexico. upon Mexican culture, as it does with were repeated everywhere he went, The Pope definedthe causes of the the other cultures of Latin America. and nearly all of Mexico was glued to oppression of Mexico, which has suf­ Human and Christian are called upon its radio and television sets to hear his fered a decade of economic and moral to free the civilizing potential which words. oppression unprecedented in the has yet to full show itself." John Paul II chose Chalco, one of country's history, in a meeting with In a May 8 challenge to 2 million the poorest suburbs of Mexico City, accredited diplomats in Mexico City: Mexican youth, gathered in San Juan to issue his first urgent call for imple­ "Another question that inevitably af­ de los Lagos, ' Jalisco, the Pope menting the Church's social doctrine. fects world stability [is] the phenome­ demanded: "Look around you, and "In many of you I see the face of non of the foreign debt . . . the mech­ see much darkness, much pain and suffering Christ," he told them. "The anism that was to have served as an suffering among your Mexican words of the good shepherd fall upon aid to the developing countries has in­ brethren. . . . Faced with this panora­ this people, whose faces show the stead become a brake, not to mention ma, can you remain indifferent?" suffering features of Christ: Misereor that in certain cases it has even accen­ Journalistsreported that "an absolute, super turbam (Matt. 15,33). I feel tuated underdevelopment. . . . I feel decisive, unrestrained No! filled the compassion for the multitude because obliged to emphasize the urgency of air from 2 million throats." they are abused and oppressed, like diligently appraising the ethical di­ The population revealed its reli­ sheep without a shepherd (Cf. Matt. mension of these crises. " gious devotion in a beautiful process 9,36) ....Today , as yesterday, the On May 6, in statements to Mexi­ of spiritual ennoblement before a Church wants to be the voice of those can President Carlos Salinas de Gor­ Pope, whom they see as the last hope who have no voice." tari,the Pope focused on the need for to change their situation. There islittle doubt that the Pope's lbero-American unity: "These days, The renewal of hope, of the Cath­ message will have profound impact we are experiencing moments crucial olic faith, of the solidarity and dignity upon all of Ibero-America. Propheti­ to the future of this beloved country of the Mexican people, was the main cally, he warnedin the city of Aguas­ and also of this continent," he said. purpose of this second papal visit to calientes May 8: "The entire interna­ He returned to this theme in address­ Mexico-the first was II years ago. tional community begins a new phase ing the diplomatic corps: "I believe it The Pope called San Juan de los Lagos in its history, which will also have an necessary to stress the importance of "land of the martyrs," a reference to impact here in the not so distant the unification of the entire Latin the fact that that city was the heart future."

62 International EIR May' 18, 1990 •

Report from Rio by Silvia Palacios

Project Democracy gang under attack close ties to the Project Democracy ProDem' s fr iends in Brazil are starting to lose fa ith in Collor de networks inside the United States. He was president of the National Federa­ Mello's loyalty to their free-market liberalism . tion of Brazilian Trade Associations (CACB). In 1987, througha series of conferences, the CACB solidified its ties to the business arm of the National Uring May Day celebrations in sional deliberations on the new gov­ Endowment for Democracy (NED), DBrazil, President Fernando Collor de ernment's reforms. On April 12, 0 the Center for International Private Mello's speech caused more than a Estado de Sao Paulo reported that Do­ Enterprise (CIPE), both arms of Proj ­ few jitters among the monetarist liber­ mingos and others had lobbied to try ect Democracy. It was CIPE which al elite of the country. Paying homage to prevent insurance companies and sponsored the activities of Peru's Var­ to his grandfather, Lindolfo Collor, other financialinstitutions from taking gas Llosa and the advocate of the "in­ Brazil's firstlabor minister, the Presi­ a bath due to some of the anti-specula­ formal economy," Hernandode Soto. dent said: tion measures included in the govern­ In November 1987 de Soto traveled to "Those who believe, as I do, in ment's reform proposals. Brazil to promote his book El Otro the market economy as the best path On April 28, during a meeting in Sendero (The Other Path}-his tour to development, would like to issue a Belo Horizonte of the National Coun­ sponsored by the Liberal Institutes warning. One cannot speak of market cil of Liberal Institutions in Brazil, a and by CACB. On Oct. 26-27, 1987, economies in a society where the ma­ resolution was issued criticizing Pres­ CIPE held a seminar on the informal jority of the workers are not integrated ident Collor's behavior publicly for economy in Washington; Temporal into the market. Only cultural back­ the first time. "Despite his liberal represented Brazil and distributed a wardness can explain why many of speech, the President adopted mea­ paper at the seminar written by Afif the well-off sectors of our population sures that we consider intervention­ Domingos. promote free enterprise, but continue ist," it read. It is noteworthy that the During deliberations of the Na­ to cling to the vice of earning a lot but Liberal Institutions proliferated in tional Constituent Assembly, the visi­ paying little." Brazil as of 1987, as part of Project ble network of Project Democracy to Prominent spokesmen of those Democracy's Latin American initia­ which Temporal and Domingos be­ "well-off sectors" reacted with exas­ tive. It was at this time that the Peruvi­ long attempted to impose a liberal peration to the President's words, de­ an Institute for Liberty and Democra­ constitution. Key to their plan was the scribing them as "populist" and pro­ cy (ILD), the machine behind the fail­ dismantling of the state sector of the testing that with such posturing, the ing presidential campaign of Mario economy, starting with the oil compa­ President is trying to single-handedly Vargas Llosa, emerged; its objective ny Petrobras. They failed. apply the teachings of his grandfather, is to pave the way for a new Thatcheri­ President Collor's provocative who formulated legislation to protect te era in South America. statements do not, however, mean that the worker during the firstgovernment The worst skirmish occurred on he is free of the influencesof the free­ of nationalist Getulio Vargas. April 26, with the administrative jail­ enterprise project. His political orien­ In fact, Collor de Mello's speech ing of a prominent Project Democracy tation will only become clear when the was the latest of a series of skirmishes mouthpiece, "businesman" Amaury government defines what kind of pri­ his government has been involved in Temporal , for tax fraud of nearly $1 vatization it plans to carry out. Will it with the monetarist liberal sectors of million. On April 28, the daily 0 Glo­ follow the line of Henry Kissinger and the country, especially the influential bo commented that Temporal's the banks, which presupposes the sur­ friends of Project Democracy-the crimes were first discovered in 1988 render of state companies through secret U. S. government behind the but were covered up. Now, added 0 debt-for-equity swaps; or will it opt Iran-Contra affair. For example, in Globo. it was "by direction of Presi­ for a more cautious program premised the days just prior to Collor's address, dent Collor himself' that the tax col­ on defense of the national patrimony, the Liberal Party headed by Project lection authorities decided to act along the lines of the programmatic Democracy deputy Afif Domingos, against tax evaders, beginning with study recently issued by the Superior broke with the Collor government. "repeat offenders . " War College , entitled " 1 990-2000,the That break occurred during congres- Amaury Temporal maintains Vital Decade"?

ElK May 18, 1990 International 63 International Intelligence

Greenpeace witness Susan Sabella said Budhoo, who held the press conference Panamanians exhume the continent should be a "world park." to announce the publication of his book, invasion's victims (Quite a place for a picnic!) Enough Is Enough; Dear Mr. Camdessus, his open letter of resignation to the IMF Angry families of Panamanians killed in the Managing Director, said that the IMF's ha­ rassment of him had "intensified since, par­ Dec. 20, 1989 U. S. invasion began exhum­ East German elections ticularly, ' October of last year. I will not ing bodies of those buried in mass graves, give posts to CD U, SPD stand for, it any more." The story of Bud­ and, according to the headline of the nor­ hoo's exposure of IMF skullduggery was mally pro-government newspaper El Siglo The first free municipal elections in East featured inEIR's issue of Jan. 27, 1989. of May 7, "4,000 bodies will be unearthed; Germany will hand most mayors' posts to A number of high officialsof the IMF and some cadavers were bound." The paper de­ the Christian Democrats (CDU) and Social its sister institution, the Wo rld Bank, have scribed the first two days of excavating only Democrats (SPD), although the two parties been resigning and blasting the policies of the first of many mass graves in the Jardin received fewer votes than they did in March their fonner employers. Budhoo cited the de Paz cemetery in Panama City. 18 elections for the national parliament. Wo rld B�'s director ofpersonnel, Dr. Mi­ The exhumation is being carried out by Some observers cited a "demobilization ef­ chael Irw�n, who, in an openletter published the Committee of Families of Victims of the fect," causing many voters to stay away by the W ll Street Journal on March 30, said Invasion, whose president, Isabel de Corro, li from the polls. that he was tired of the Bank's "bloated and toldEl Siglo: "We have begun with the com­ Noteworthy was a strong vote for the overpaid bureaucracy, wasteful practices, mon grave at Jardin de Paz, and we will : Farmers Partyin rural districts, and the re­ poor ma):J.agement, and unjustified arro­ continue with the rest until we are able to markablegains for non-party citizen groups gance." bury every last body in a dignified manner. in numerous cities (especiallythe university David Knox, former Wo rld Bank direc­ These patriots deserve a special place cities). tor for Latin America and the Caribbean, is among Panamanians." The three bigger partiesCD U, SPD, and another former employee who has de­ In just the first two days, 122 bodies the communist PDS consolidated their posi­ nounced ,the policies of the IMF and the were found, including threethat were bound tions. The communists were still able to poll Wo rld Bank, Budhoo revealed. Knox at­ hand and foot. El Siglo commented, "Every­ 14% on the basis of the administrative tacked thl! handling of Latin America's for­ thing indicates that they did not die in com­ strongholds of the old regime, showing that eign debt, and said that debtor nations "have bat, but were killed in cold blood." UPI ran the "apparatus" is still there. no alternativebut massive default." a story on the exhumations and said that But in spite of the fact that the PDS "unofficial estimates [of dead] are between gained 30% in East Berlin, 17% in Frankfurt 2,000 and 4,000." The U. S. official estimate am Oder and Schwerin, most-if not all­ is that fewer than 100 civilians were killed Italia'n te"orists mayoralties will be taken by either the SPD I in the invasion. or the CDU, which are expected to form given .22 years "grand" multiparty coalitions in many mu­ nicipal parliaments. East Berlin will be run The founder of a left-wing pro-terrorist Environmentalists seek to by an SPD Lord Mayor, Dresden by one newspaper, Lotta Continua, was sentenced from the CDU, Leipzig by one from the to 22 ye� in prison by an Italian judge for ban Antarctic drilling SPD. the assaSsination of a police inspector 18 years ago. Luigi Calabresi was killed in Mi­ Environmentalists testifying before the U. S. lan on MllY 17, 1972, after an intensive cam­ Congress on May 2 called for a total ban on Accuse IMF, Wo rldBank paign of �landers against his person, particu­ mining and drilling in the largest unexplored larly appearing in Lotta Continua, the paper wilderness in the world, Antarctica. of rights violations of a terrorist group of the same name. At a congressional hearing, Jacques Adriano Sofri, the founder of Lotta Con­ Cousteau and representatives of Greenpeace Davison Budhoo, who resigned from the tinua, anll Giorgio Pietrostefani, one of the and the Antarctica Project criticized a pend­ International Monetary Fund to protest that leaders 0' the group, ordered the assassina­ ing internationaltreaty on Antarctic mineral institution's genocidalpractices against the tion of Calabresi, and one Ovidio Bompressi development, and urged the United States to Third Wo rld, charged at a press conference actually pulled the trigger, according to Leo­ give up its "minerals option" under the trea­ in Washington, D.C. on May 3 that the IMF nardo Manno, a former Lotta Continua ac­ ty. Several countries, including France and is engaging in a "systematic pattern of viola­ tivist who confessed to being the driver for Australia, have sided with these ecological tion of my human rights and the human the assassination team. fascists, and have urged a ban on mining. rights of others associated with my work." Marino also revealed the existence of

64 International EIR May 18, 1990 Briljly

• HERMANN ADS, the former chairman of West Germany's Deut­ an "underground" level in Lotta Continua, exercises, "Ocean Ve nture ," "Global sche Bank, has been placed on the responsiblefor robberies and terrorism. Out Shield," and "Defex ," were routine and not "Watch List" of the U.S. Justice De­ of that underground emerged other top ter­ aimed against Cuba. partment's self-proclaimed Nazi­ rorists in the course of the 1970s . President Bush has fiercely criticized hunting agency, the Office of Special On May 2, a Milan court sentenced So­ Castro's government for refusing to follow Investigations. Those on the list can­ fri,Pietrostefa ni , and Bompressi to 22 years political reforms in Eastern Europe and not obtain U.S. visas. A Deutsche in prison, and Marino to 11 years . Sofri is an change the island's one-party communist Bank spokesman said that this came adviser to Socialist Party leader and Deputy system. as a shock, since Abs has traveled Premier Claudio Martelli. Socialist Party Across Cuba over the weekend, firing to the U. S. numerous times and was general secretary Bettino Craxi, the former ranges crackled to the sound of automatic active in the anti-Hitler resistance. prime minister, immediately criticized the arms fire as civilians in the militia uniform sentence, saying he was "surprised" at it. of green trousers and blue shirts received • A NIETZSCHE SOCIETY was Martelli has attacked it as "unjust." weapons training from military instructors . founded in London in the first week Italian President Francesco Cossiga, a Cubans from 17-year-old youths to 65-year­ of May. A Nietzsche revival has hit day before the sentencing, had given an un­ old grandmothers put on black camouflage both British and American universi­ precedented speech blasting the "intellectu­ paint, crawled through assault courses, and ties , the Sunday Times of London re­ als" who supported and justified terrorism, learned how to shoot and throw hand gre­ ported. American commentator Stan­ calling them "bad teachers who, with an nades. In Havana alone, more than 120,000 ley Rosen called Nietzsche "the most irresponsibility equal only to their conceit of the 2 million inhabitants were mobilized influential philosopher in the West­ and moral and physical cowardice, for the for defense. ern world"-witness Hitler's Nazis, most part bourgeois, full of complexes, and although Rosen said nothing of that. well established in university professorships and newspaper editorships . . . induced • PRINCE CHARLES popped up young people . . . leading them to a destiny Communists, fa scists in Hungary May 8, and called on the of suffering and prison, but covering their West to help Eastern Europe recover own social and economic interests very lose in Italian election from the "ecological Armageddon" it well." suffered under communist rule . The The Italian Communist Party lost about 7% region has suffered a "terrible catas­ of its former vote in May 6 city, provincial , trophe ," he said. "Somehow we must Cuba la unches big and regional council elections, in which the find a way to help reverse this appar­ Christian Democrats suffered small losses ent ecological Armageddon. " military exercises while the Socialists enjoyed small gains. The right-fascist MSI lost 2%, while the • TEN THOUSAND Czechs gath­ Cuba's armed forces, battle-tested in Afri­ left-fascistGreens lost 1 % compared to their ered in the city of Pilsen for a rally ca, have engaged in nationwide maneuvers , vote in the European Parliament elections of commemorating the 45th anniversary and President Fidel Castro has stated that 1989 (but gaining about 1.5% compared to of the city's liberation by Gen . Cuba would be another "Vietnam or worse" 1985). George Patton's 3rd Army . Czech for the United States if it tried to attack . The The Lega Lombarda, which favors au­ President Vaclav Havel unveiled a mobilization of forces on the communist­ tonomy for the Lombard region, got an ex­ memorial plaque in the little town of ruled island has gathered momentum since traordinary 20% of the vote there . Rokycany, where Patton was ordered May 2, when the government launched the Electoral slates associated with the to halt his advance on Prague under "Cuban Shield" exercise to counter what it views and program of international states­ the Yalta agreements. said was the threat posed by three simultane­ man Lyndon LaRouche competed in the ous U.S. military maneuvers in the Caribbe­ Rome area and the town of Caorso in north­ • 'THE SUMMER will be tough. an . "The Yankee maneuver is an opportunity ern Italy. The Rome slate, called "Liberty I expect a fresh strike wave," Soviet for us to hold our own exercise," Castro for LaRouche," received 5,000 votes. In Labor Minister Vladimir Sherbakov said in a visit to a military command post in Caorso, the site of a nuclear plant rendered told a Spanish interviewer May 4. "If Havana. idle by Italy's 1987 referendum banning nu­ people are demanding better meat The Cuban mobilization of regular mili­ clear power, the Italians for Progress slate supplies, and there is not any meat in tary forces , reservists, and militia appeared won 1.5% of the vote, with its chief cam­ the country at all, no matter how to be one of the biggest since the 1962 mis­ paign demand being the reopening of the many laws are approved, the situa­ sile crisis, Havana-based diplomats said. nuclear plant (see EIR , May 4, 1989, "Pro­ tion will not change . " Wa shington said May 4 that the U.S. nuclear party on the ballot").

EIR May 18, 1990 International 65 TIillNational

Jrny refuses to buy Bush's Iran-Contra stoty

by Sandro Mitromaco

A federal jury in Portland, Oregon on May 4 acquitted a Judge Norma Holloway agreed to order the government to former CIA contract agent charged with lying to a judge-a release 1 ,400pages of Oliver �orth' s diary, which were kept development which means that the thick shell of lies sur­ mysteriously classifieduntil now. On one of the pages, there rounding the Iran-Contracase has finally been broken open. is reference to a meeting between Northand Bush on Aug. 6, President Bush could be the firstto go down under the debris. 1986-ameeting that, accordil!lgto the sanitized chronology The defendant, Richard Brenneke, had been indicted for which the Bush group admits to, never took place. We will making false declarations, in testimony concerning a super­ see how this fits into the illegal Contra operation. secretOctober 1980 airplane flight to Paris by George Bush, But there is more to come. Over the past days and weeks, William Casey, and other notables from the Reagan-Bush the European media have played up the story of a telegram election campaign team, to meet with representatives of Aya­ sent by the Venerable Master of the masonic lodge Propagan­ tollah Khomeini and discuss a cynical plan to free V.S. hos­ da-2, Licio Gelli, to Philip Guarino, a close associate of Bush tages-but only after the V. S. presidential elections. and a special assistant in the RepublicanNational Committee "Now people will be confronted with the problem of for the last 17 years . The telegram read: "Tell our good friend 'President Quayle,' " said a source close to Brenneke's de­ Bush that the Swedish tree will be felled." Three days later, fense. "It is no joke anymore. People will be forced to ap­ on Feb. 28, 1986, Swedish Prime Minister Olof Palme proach the issue. This is the only bad side of the court ("palm tree") was killed by an Ilssassin. victory." Brenneke was accused of having lied to Denver, Colora­ Brenneke tells his story do Federal Judge J .R. Carrigan, when he testifiedunder oath Brenneke was indicted for alleged false declarations to a on the deal the group around vice presidential candidate Bush federal judge, a charge that is stronger than perjury and could ' concluded with the representatives of Khomeini. The Bush­ lead to a five-year jail term. On Sept. 23, 1988, he had men, he said, promised money and weapons if Teheran de­ testified in camera before Judge Carrigan during the trial of layed the freeing of the hostages. That is exactly what hap­ one Heinrich Rupp, who was, accused of financial crimes. pened: Khomeini let the hostages free on Jan. 20, 1981, the Brenneke voluntarily asked to testify in Rupp's behalf and day of the inauguration of Reagan and Bush. stated that Rupp was in reality a CIA agent and the crimes Whether or not Brenneke's version of the "October Sur­ imputed to him had been done in the course of his work prise" is correctin every particular is not the point; the critical for the agency. Besides, powc;rful forces were interested in fact is that the jury's decision, occurring at the same time as destroying Rupp's credibility. Why? Because Rupp knew certain curious, related developments, can cause "all the trees too much about the secret deal that took place in Paris in in the forest to fall," as intelligence community parlance October 1980. Brenneke said �at "Mr. Rupp was involved would have it. in a flight in which Mr. Bush, Mr. [William] Casey [at that Just four days after the Portland verdict, V.S. District time chairman of the Reagan-Bush campaign and then direc-

66 National EIR May 18, 1990 tor of the CIA until his death after the Irangate scandal ex­ "proving" he could not have been in Paris. ploded] and a number of other people were brought to Paris, It was a big mistake. What the cocky Gregg could not France." imagine, was that the defense would produce as a witness Brenneke testified that Rupp had told him that Casey Robert Edward Lynott, a weather forecaster who is a legend "rode in the aircraft he flew." He also stated: "I was told that in Oregon and respected all over the United States. Lynott the following representatives of the Reagan-Bush campaign said that it was impossible that those pictures had been taken and the Iranian government were present at one or more of when Gregg said they were. The weather conditions at the these meetings: George Bush, William Casey, Richard Allen time would have made it impossible to be at the beach, and [then campaign official later Reagan's national security ad­ photographs taken on those days could not have included viser] , [B ush aide and now U. S. ambassador to South Korea] any sunshine. The prosecution was unable to counter the Donald Gregg, Ali Akbar Rafsanjani [then Speaker of the testimony of the witness. Iranian Parliament and now President of Iran], Jalal ad-din But already under cross examination by defense lawyer Farsi, and Cyrus Hashemi [the Iranian arms trader who died Michael Scott, Gregg was put on the defensive. He had to in mysterious circumstances in London] . I have been told go into his having been in the CIA for 31 years, and had to that others were also involved." admit that to lie is part of the job. He had also to explain in There were three meetings, he said, about the hostages some detail the agency's concept of "plausible deniability." on Oct. 19-20, 1980 at the Hotel Florida and Hotel Crillon It was established for the jurors that if what Brenneke said in Paris. Brenneke said he had attended one meeting at the was only partially true, then Gregg had to lie as a matter of Hotel Florida and that "at the meeting I attended, the follow­ professional routine. Things were not made easier by the ing individuals were present: William Casey, Cyrus Ha­ fact that Scott kept accidentally addressing Gregg as "Mr. shemi, [arms dealer and Iran mediator Manucher] Ghorbani­ Casey." far, Don Gregg, [French intelligence operative and arms Another mistake by the prosecution was to produce as dealer] Robert Benes, Col. Degan, Ahmed Hedari, one other witnesses two secretaries of the late William Casey. The American and two other people, who were not Americans." ladies were asked whether Casey went to Paris during the Brenneke said that an agreement was reached for $40million last period of the campaign. The first said that "he was every worth of weapons to be shipped to Iran. He also said that he day in the office." The second said he was there "most of the was at the meeting as "a member of the CIA." time."

The prosecutor's mistakes The 'October Surprise' committee Brenneke's prosecutor, Assistant U. S. AttorneyThomas But that all became irrelevantwhen former National Se­ O'Rourke, was reportedly confident of an easy victory. The curity Adviser Richard V. Allen testified on May 1. Allen rumor was spread among journalists that Brenneke was al­ had beensubpoenaed by the defense because he was consid­ ready finished, so there was no point in even attending the ered the chief of the"October Surprise" committee inside the trial-indeed, there were almost no press at a trial in which Bush-Reagan campaign. It seems that Allen had threatened both Gregg (the protege of the President) and Allen (a former to do everything in his power to damage the defendant if national security adviser) testified. Apparently O'Rourke felt forced to testify; but when put on the stand, he had to admit backed up by the full power of the Establishment. His star a few things. This was the first time that Allen has talked witness was the powerful and feared Gregg, formerly of the about that period under oath. CIA, and Vice President Bush's national security adviser in First of all, he said that in September-October 1980 he the period of the Iran-Contra shenanigans. The prosecutor had been in Europe three times, that Casey was with him at also presented two of William Casey's secretaries, to try to least once, but that he "could not remember" precisely when. prove that Casey did not go to Europe, two CIA agents to Such a formulation, according to the experts, could save him demonstrate that Brenneke was never an agency employee, from a charge of perjury in the future. Allen thus did not and two Secret Service agents who were attached to Bush in deny the possibility that Casey was in Paris, when Brenneke October 1980, to say that they were with Bush all the time said he saw him there. and he did not go to Paris. Second, Allen confirmed the "October Surprise" story. These witnesses, starting with Gregg, behaved in an arro­ He said that the Bush-Reagan campaign was concerned that gant way that backfired against the prosecution. Donald President Carter would achieve an "October Surprise" Gregg sat in the witness stand looking straight at the jurors throughthe release of the hostages before election day. Allen and repeating again and again that everything Brenneke had even confirmed that the Reagan-Bush campaign had moles said was false. He particularly insisted that he had not been in the Democratic campaign, and these sources sent word in Paris in that period, and he presented as evidence a couple that Carter was ready to close a deal with Teheran. He identi­ of photographs portraying himself and his family that he said fiedone of these sources with then Secretary of State Edmund were takenon Oct. 18-19, 1980 at Bethany Beach, Delaware, Muskie. Allen also testified that a memo he wrote after the

EIR May 18, 1990 National 67 end of the presidential race, concerning a "deal" with the go out and lecture; go out in public. Iranians, was referring to a promise of unfreezing Iranian "What has gone on is dangerous, very dangerous. Mr. assets frozen by the Carter administration. Bush has not addressed these issues, issues like this trial. He has to comment on this. If I am telling the truth , someone is The alibi Bush used lying very bad in D.C.! In Washington, peopleon both sides Another line of testimony that did not work for the gov­ of the fence want to continue with these half-truths. If more ernment's case was that of the two Secret Service agents information comes out, like this meeting between North and assigned to Bush in October 1980. When they tried to demon­ Bush, then this will make really a difference; otherwise the strate that Bush could not have been out of the country in that compromise, the game will go on." period, they ended up contradictIng one another and trying According to defense attorney Scott, the essence of the to fit their 21-day shift around what they were doing on the Portland trial is that "this immense apparatus, all these great famous weekend in question. resources were not able to produce any credible evidence Several affidavits and written reports were presented by against Brenneke. The jury listened to Gregg and did not the defense, but they were not accepted by the judge. In one believe him. Now I hope that the Justice Department has informal exchange, apparently the judge said that he would to draw the conclusion and start a serious investigation of not scandalize a jury of honest Denver citizens with evidence Gregg." of illegalities committed by the government. Some of the affidavits had been presented by a defense witness, William Will heads roll? Northrop, who has been at the center of a similar case in Many observers pointed out afterthe trial , that now may­ which a number of people were arrested and accused of illegal be Iran-Contra special prosecutor Lawrence Walsh will feel dealings with Iran while they were working for the gov­ encouraged to indict Gregg. Right after Brenneke' s acquittal, ernment. rumors popped up all over Washington, D.C. that indict­ Two intelligence operatives from Texas, Gary Howard ments are going to be issued against Gregg, former State and Ronald Tucker, testified about their collaboration with Department official Elliott Abrams, plus Duane Clarridge Brenneke, showing that he was working with the government and Allan Fiers of the CIA. and the CIA. Howard and Tucker, who have worked with Several commentators, like Seymour Hersh in the April the Customs Service and other law enforcement agencies, 29 New York Times, are beginning to target the shameful have also said in several interviews, including in the Wash­ compromise between the administration and the Democrats ington Post, that they were contacted by the FBI in order to in the Congress that led to the coverup of the real leads in the try a sting operation against Lyndon LaRouche. Reportedly Irangate affair. Then came the bombshell of the hitherto­ the two now wanted to go on record with statements that suppressedpages of Oliver North's notebooks. Among those would be useful to a lawsuit they have filed against the gov­ 1,400 pages there is North's schedule forAug . 6, 1986. The ernment for having used them in sting operations without day started with a phone call to Amiram Nir, the Israeli paying them. official who knew everything about Bush's involvement in Another witness was former CIA agent Frank Snepp. the Iran-Contra affair and who later died in a mysterious plane crash in Mexico. Later that day, North took a call from 'Dangerous, very dangerous' Robert Dutton, from the Contra resupply base in El Salvador. "There are a lot of people in Europe who know what One hour later, North was talking to ...Donald Gregg. And happenedin October 1980," Brenneke told the press afterhis after that he had a meeting at noon with ...George Bush! victory. "Now is the time to come forward. These people in It seems that North was facing a real big problem that he Europe can do a lot to arrive at the truth. Please make this could not solve, and had to go all the way up in the secret message clear. " apparatus behind the illegal Contra resupply project. Brenneke had spent a week during the trial at the St. The apparent subject of these meetings was certain inter­ Vincent Hospital and Medical Center in Denver, after he nal disagreements concerning a close associate of Gregg and suffered serious heart problems on the second day of the Bush, Felix Rodriguez, then deployed in El Salvador in ser­ trial. According to the defense lawyers, he and the lawyers vice of the CIA. But Gregg has testified that both he and themselves had been receiving death threats. Bush were unaware on Aug. 6 that Rodriguez was involved Brenneke said further that "the unanimous verdict of the in supplying the Contras. On Aug. 8, Gregg met Rodriguez jury shows that the American people are capable of recogniz­ in Washington. ing the truth. And though in many similar cases the judiciary How many more pages of crucial documentation are process failed, in this case it worked. Thus I am optimistic "missing"? On how many of them does Bush's name appear? for the future. Now the American people must know what ''The shadow oflrangate looms again over the White House," happened. Maybe this will not occur in a courtroom, but in wrote the Italian daily Il Giornale on May 10, describing the other forums. I am thinking to write a book. I would like to meeting of Bush with North.

68 National EIR May 18, 1990 of the Republican National Committee." Documentation From the Italian magazine Epoca, May 13, an article titled "The venerable trail, " by Elisabetta Burba. "Also the American police will look into the Palme affair. Wo rld press pOints And the new investigations could lead to big surprises con­ cerning the role of Licio Gelli's Propaganda-Two lodge, as revealed by FBI agent John McClerg and reported by the to Bush's P-2 link Stockholm daily Dagens Nyheter. Who put the FBI on the Italian trail? A telegram signed by Licio Gelli and sent on The trial of Richard Brenneke in Portland, Oregon has Feb . 25, 1986 to Philip Guarino: "The Swedish tree will be sparked new international attention to the complex web of felled, tell our good friend Bush."... The story was taken up intrigue surrounding the Iran-Contra arms{or-hostages by the book October Surprise by Barbara Honegger, political deals. The lid is coming off some of the most closely held analyst for Ronald Reagan until 1984, which put in evidence secrets of the U.S. "secret government, " including notably possible connections between the murder of Pal me , the victo­ the link to ItalianfreemasonLicio Gelli. ry of Reagan in November 1980, and the activities of Licio The Swedish newspaper Dagens Nyheter on April 30 re­ Gelli .. .. ported the startling fa ct of a 1986 telegram from Propagan­ "Sources supporting Honegger's reconstruction? For ex­ da-2 leader Gelli to a close associate of George Bush, hinting ample, Richard Brenneke, a CIA agent presently standing at the imminent assassination of Swedish Prime Minister trial. Olle Alsen of Dagens Nyheter told Epoca: 'Before his OlofPalme. The article, by Olle Alsen, is titled, "FBI takes assassination, Palme was acting as mediator for the United on the murder of Palme." Nations between Iran and Iraq . Maybe he knew too much . . . . ' Another lead comes fromDenma rk , from the Monthly "The FBI headquarters in Washington," Alsen writes, "has Press of Jan. 26, 1989. It's an interview with a lawyer of decided to place highest priority on the murder of Olof Palme. Stefano Delle Chiaie, fascist terrorist and member of the P- This information was given by FBI (Los Angeles) agent John 2 lodge. He stated that shortly afterPalme 's death, his client McClerg on Feb. 23 [1990] to former Reagan administration confessed to him he knew who killed the Swedish prime official Barbara Honegger ....Why is the FBI just now minister. Now the spokesman of the Committee of Investiga­ telling Barbara Honegger that the FBI will give highest prior­ tion of the Palme murder declares: 'The Italian connection is ity to the murder of Olof Palme? In her book (October Sur­ of extreme relevance.' Is this another coincidence?" prise, p. 240) Mrs. Honegger writes that a CIA agent called 'Y' alleged that notorious Italian P-2 leader Licio Gelli, From the Italian daily Avvenire, an article published on shortly before the murder of Olof Palme, sent a telegram to Sept. 21 1988, during the U.S. presidential campaign. By a close collaborator of Bush, reporting, 'Tell our good friend Alexander Minak, it is titled, "Also a picture of Gelli to get Bush that the Swedish treewill be felled'-which happened the Republicans. " three days later, Feb. 28, 1986," the day Palme was mur­ "There is a picture circulating around portraying George dered. Bush warmly shaking hands with Licio Gelli. The photo­ Alsen recaps his Feb . 19, 1990 column in the same news­ graph is actively sought by the staff of the Democratic presi­

paper, where he reported on this sensational telegram as it dential candidate .. .." . was read on a Sept. 17, 1988 Los Angeles radio talk show, where "Y," a.k.a. "Racine," read the telegram's text. "Bar­ From the book October Surprise, by Barbara Honegger (Tu­ baraHonegger does not know 'Racine's' name-for 18 years dor Publishing Company, New York, 1989), p. 240. he worked as a CIA agent; he went under the code-name "According to Informant Y (a.k.a. Ibrahim Razin), who Oswald or Oscar Le Winter. But now it can be revealed that claims his source to be Licio Gelli' s top associate Francesco his actual name is Ibrahim Razin and that he works with a Pazienza, George Bush himself was made an 'honorary' Jewish magazine in Frankfurt. These facts have come out member of P-2 in 1976, the year that he became director of around the ongoing trial in Portland, Oregon against Richard the Central Intelligence Agency. Though the author has no Brenneke, the one who first tipped Barbara Honegger off to confirmation for this claim, it is a fact that Gelli's 'lodge,' the 'October Surprise' hostage release affair. CIA agents in and especially P-2's sister Comite Montecarlo, has branches Frankfurt have reportedly pressured Razin not to testify as a in many countries besides Italy and that the grandmaster's witness for Brenneke's trial . ... [Gelli's] key targets for membership have been top civilian In recent days I was in the U.S. and also had contact and military intelligence officials.. ..There are additional with the cited telegram's alleged recipient, Philip Guarino, reports that suggests a possible link between George Bush who is .a close friend of Bush and former vice chairman and Licio Gelli 's secret organization."

EIR May 18, 1990 National 69 Summit's approach brings new Soviet demands andmore Bush concessions by Kathleen Klenetsky

Decked out in full uniform and sporting a chestful of medals, five years, Akhromeyev added a big "but": He insisted that Marshal Sergei Akhromeyev, the former chief of the Soviet Moscow's position is that these numbers must also represent Armed Forces, marched into Washington in early May and the maximum SLCMs each side is permitted to deploy. "If put forth demands that the United States make significant one were not to do that," he said, "then by building SLCM's, new disarmament concessions, or else face the total collapse you could bypass the [START] treaty, walk aroundthe trea­ of the various arms control negotiations. ty, having deployed then several thousand additional With this latest outrageousdemand, that great democrat, SLCMs. And the treaty becomes nonsensical." Soviet President Mikhail Gorbachov, is putting a very clear Akhromeyev sharply criticizedthe U.S. for so far refus­ choice before George Bush: Either grovel some more and ing to engage in naval arms talks. "We think this policy is give Moscow what it wants, or else suffer the political conse­ unjust and aimed at undermining security and gaining mili­ quences of having no foreign policy "victory" result from the tary superiority over the Soviet Union," he said. A decision upcoming summit, to parade before an increasingly-restive by the U.S. to change this Position "is today one of the American population. decisive preconditions for the improvement of relations be­ In an appearance before a Senate Armed Services sub­ tween our countries and strengtheningof confidence." committee May 8, and in other Washington public and pri­ Akhromeyev made no effort to soften Moscow's ultima­ vate forums, Akhromeyev, who currently serves as chief tum that there will be no START or CFE accord without a arms control adviser to Gorbachov, delivered a blunt mes­ U.S. concession on the naval issue. When subcommittee sage: If the United States doesn't agree to negotiate on naval member Sen. John Warner (R-Va.) asked him whether the force reductions, then the Soviets will continue to keep the Soviets would insist on naval arms negotiations as a "prereq­ strategic arms (START) and conventional forces (CFE) talks uisite" to forward movement in the START and CFE talks, deadlocked. the Marshal retorted: "You've just said that 100% right." He added: "The Soviet people are beginning to have suspicions No concessions, no agreements and mistrust of the policies of the U.S. because they refuse The Soviet marshal specifically called on the U.S. to to enter negotiations on naval forces." negotiate limits on both sea-launched cruise missiles (SLCMs) and tactical naval battle forces. So far, the U.S. Bush is panicked has refused to agree to reductions in these areas because the The Bush administration has made no definitivereply to American strategic deterrent is significantly more dependent Akhromeyev's demands-yet. But even though any move upon naval power than is that of the Soviet Union. toward acquiescing would mean a lethal blow to U.S. de­ Akhromeyev stated flatly that Moscow wants to limit fense capabilities, EIR has learned that there is serious dis­ SLCMs. Although he denied it, this position represents a cussion among the administration's top echelons that this be hardening in Moscow's previous stance, and a definite back­ done. ing-away from the agreement reached by Secretary of State "Bush is in a panic right now," one source explained. James Baker and Soviet Foreign Minister Eduard Shevard­ "Prospects for the summit are looking gloomier by the mo­ nadze last February. At that time, the Soviets had agreed to ment. Just look at what Quayle said in London the other deal with the issue by requiring the two sides to simply de­ day-that the summit wouldn't be 'totally negative'! And clare the extent of its SLCM deployments. the economy's downswing is making Bush look bad on that While asserting in his congressional testimony that Mos­ front. What he desperately needs is some kind of big public cow had accepted the U.S. proposal that both superpowers relations plum, preferably a big arms-control breakthrough, declare how many of the missiles they will have over the next to paper over the mess, and Gorbachov isn't going to give

70 National EIR May 18, 1990 it to him unless Bush is willing to engineer a compromise." upon Bush's fears that, without new demonstrations of sup­ While no hard evidence exists that Bush will compromise port from the U. S. , Gorbachov will be toppled. For example, on the naval talks issue, the administration is plying the the current issue of the Soviet magazine Literary Gazette Soviets with all sorts of other concessions. In early May, carriedShevardnadze' s speech to Communist Partymembers the National Security Council approved a new policy that in April , in which he warned that Soviet hard-liners, angry would significantly relax export controls on advanced com­ over Gorbachov' s "concessions" to the U. S. on armscontrol puters and other high-tech devices, such as microwave tech­ (!), may trigger a "social explosion." Copies of the magazine nology, to the Soviet Union that clearly could be put to are circulating through the White House and State De­ military use. partment. A week later, while Akhromeyev was in Washington, And Akhromeyev, in an interview with reporters in the administration let it be known that it had informed the Washington May 7, said that Western fears about Soviet Soviet Union that it is ready to halt production of chemical political instability are justified. "There is a certain reason weapons at a date to be agreed upon with the Soviet Union. for anxiety," he asserted. The decision, a softening in the administration's prior The administration, meanwhile, is moving headlong to­ stance, was a last-gasp effort on Bush's part to get some wards massive cutbacks in defense, blindly ignoringthe evi­ kind of arms agreement out of the summit, in this case, the dence that the Soviets are merely in a periodo f retrenchment, framework for an accord on chemical weapons, since it from which they intend to emerge militarily stronger than had become obvious that there would be no movement on before. Joint Chiefs of Staff chairman Gen. Colin Powell START or CFE. gave a lengthy interview to the May 7 Washington Post, in The change on chemical weapons follows Bush's an­ which he said that the Defense Departmentneeds to conduct nouncement May 3 that the U.S. would ask NATO to autho­ an extensive review that could lead to a 25% reduction in the rize negotiations that could lead to the elimination of all current size of the U. S. Armed Forces within the next four U.S. short-range missiles in Western Europe. to fiveyears . If applied to the currentyea r's Pentagon budget One sign that the Bush men are preparing to meet Soviet of $291 billion, this would translate into a $73 billion cut in demands for new concessions to keep the START and CFE one year alone. talks alive, came on April 18, when Edward Rowny, the chief U.S. negotiator at the Geneva strategic nuclear arms talks, handed in his resignation, effective June 30. Friends of Rowny put out the word that he was resigning to protest the administration's desperate haste to get a START agreement. SIBBET PUBLICATIONS Back in 1979, Rowny resigned as lead delegate to the SALT II talks, a move which contributed to the Senate's refusal to ratify that accord. On the day he resigned from the Bush team, Rowny gave a speech to the Reserve OfficersAss ociation (ROA) warning that Soviets "have toughened their stance ....As a matter of fact, they've walked back on some of the agreements and they see the possibility, they think, of getting us to make concessions simply to get an agreement," he said. Rowny cited the Soviet change in position on SLCMs as an example. To morrow & WHY Rowny also warned that the Soviets are continuing to modernize their strategic weapons "aggressively." "The bot­ Stocks, Bonds & Precious Metals tom line is that the Soviet strategic force that would remain Recorded 3 Min Message after START reductions have taken place, while smaller, would still be a completely modem, formidable nuclear Changed at 7:00 P.M. force," Rowny told the ROA. 'The U.S.S.R. is intent on retaining its claim to the status of a superpower equal to the United States that only first-rate nuclear forces can provide." 1-900-234-7777 Soviets exploit internal unrest Only $2.00 a minute. Ext. 33 The Soviets are trying to bolster their bully-boy blackmail Instruction manual for service. tactics by carefully exploiting the unrest in the Soviet Union Call 818-798-9746 for your copy. to obtain more concessions from the U.S. They are playing FREE

EIR May 18, 1990 National 71 standing commitment to an amendment to the Constitution to require a balanced federal budget. Presented as a panacea for the nation's fiscal woes, a balanced budget amendment would create an even bigger mess than now exists. Under c�rrent Depression conditions, Thornburgh longs to real production is rapidly collapsing, and the tax base along with it, so that balancing the budget would require increas­ scrap Constitution ingly savage attack on defense and social spending, leading to further shrinkage in revenues. by Kathleen Klenetsky It was Thornburgh's commjtment to the balanced budget insanity which also brought him to the NTU . This group has played a pivotal role in orche$trating the effort to get state Is it possible for an individual to function honestly and com­ legislatures to adopt resolutions calling on Congress to con­ petently as the Attorney Generalof the United States, when vene a second constitutional convention, to adopt a balanced he has worked closely with groups devoted to overthrowing budget amendment. ,the U. S. Constitution? What might ordinarilybe a hypotheti­ The constitutional convention issue is highly controver­ cal question suitable to classroom civics discussions, has sial , and rightly so. Leaving as�de momentarily the merits of taken on real urgency now that Richard Thornburgh is serv­ the balanced budget amendment, there is no guarantee that a ing as the nation's chief law officer. convention could be limited to this one subject; there are Since his appointment by George Bush, Thornburgh has well-grounded fears that it co�ld become a "runaway" con­ trampled on the Constitution by promulgating the Thorn­ vention , with all sorts of amen4ments adopted. Yet, the NTU burgh Doctrine, which maintains that the U.S. has the right runs around from state legislature to state legislature preach­ to invade another country and kidnap foreign nationals sus­ ing the virtues of the so-called !"con con." pected of disobeying U.S. laws. He has campaigned vigor­ Thornburgh's public involvement �ith the NTU dates to ously to strip U. S. criminal defendants of their constitutional 1987, when he joined an NTU spinoffcalled "Citizens for a rights; and to expand "white collar crime" prosecutions of Balanced Budget Amendment" Thornburgh, then governor savings and loan officials, industries in violation of environ­ of Pennsylvania, served as co-chairman, along with Richard mental regulations, defense industry executives, and others. Lamm, the former Colorado governorwho leaped into noto­ Thornburgh's contempt for constitutional principles is riety with his 1984 call for tht\ elderly to "die and get out of reflected in his past involvement in two groupsthat have been the way." This, in fact, is the primary motive behind the in the vanguard of the campaign to undo the work of the balanced budget amendment drive: to force through such Founding Fathers , the Committee on the , Constitutional lethal cuts in spending that lot$ of people will have no choice (CCS) System, and the National TaxpayersU nion (NTU). but to "die and get out of the way." Even before that, in 1986, Thornburgh had given favor­ The Constitution must go able testimony before the New Jersey state legislature when The CCS was established by former Carter White H�se it was considering a resolutiCl>n to call for a constitutional counsel Lloyd Cutler in the early 1980s, to fulfillthe aims he convention. had laid out in the Fall 1980 issue of the Council on Foreign Thornburgh's anti-Constitution activity has drawn fire Relations journalForeign Affairs. There he sharplycriticized from groups such as the Sons of the American Revolution­ the U. S. Constitution for creating a political system that a development which has no� gone down well with Thorn­ permitted the average citizen to have too much influenceover burgh's co-conspirators. An NTU staffer bitterly complained elected officials. This, he complained, impedes the imposi­ that "right-wing crazies in re� polyester slacks" are "out to tion of policies which the Establishment elite deems neces­ get" Thornburgh, by "trying to show that he is an evil person" sary , but which would be politically unpopular, such as deep because of his involvement with the CCS and NTU . cuts in Social Security and other austerity measures. Thus, Indeed, the same "right-wing crazies," along with acoali­ Cutler argued, the constitutional system should be scrapped tion of liberal groups, have sllcceeded in getting two out of and replaced with something less susceptible to constituency the 32 states which had endorsed "con con" resolutions, to pressure, such as the British parliamentarysyst em. rescind them. (A total of34 states must adopt such resolutions According to CCS coordinator Peter Schauffter, Thorn­ before a constitutional convention is held). Despite these burgh was an "active member" of the group's board. Thorn­ setbacks, an NTU officialrec�ntly gloated that thereis a good burgh is clearly in sympathy with Cutler's overall aim of chance several other states may soon adopt such resolutions. changing the U.S. government to facilitate austerity mea­ With the AttorneyGeneral in their comer, the enemies ofthe sures. Spokesmen for the CCS and NTU reportthat Thorn­ U.S. Constitution may soon! rack up some important new burgh became involved in their efforts because of his long- victories.

72 National EIR May 18, 1990 Beijing-and possibly its allies in Washington-was worried. Meanwhile, students in China itself were also be­ coming increasingly radicalized. China Spring literature smuggled onto the mainland became instrumental in that growing radicalization, as Chinese authorities have since Who's protecting stated. Beijing's spies? Feng launches a preemptive coup However, on Jan. 8, 1989, Feng and 15 of his supporters ran a coup within the executive committee of China Spring, by Joseph Brewda and expelled Wang and all of the organization's founders. Feng, who had been an obscure member based at Princeton Evidence has emerged that the Bush administration may be University, promptly moved to Washington, D.C. to work protecting mainland Chinese intelligence operations on U.s. out of Cline's two-room officeon K Street. Feng' s firstaction territory. According to recent revelations, a Chinese national as head of China Spring was to initiate civil action against who seized control of the China Spring group last year is a Wang for allegedly pilfering funds. Wang was forced to penetration agent of the People's Republic of China Ministry establish a new organization, the Chinese Democratic Party, of State Security. China Spring had been the most important in greatly reduced circumstances-and as the revolutionary U.S.-based Chinese student organization opposed to the events in Tiananmen Square approached. On June 30, 1989, Deng Xiaoping regime. Its policy changed dramatically after the mayor of Beijing, Chen Xitong, delivered a speech justi­ Feng Shengping-the alleged P.R.C. operative-took fying the Tiananmen Square massacre, in which he specifi­ charge. Feng works out of the Washington office of former call y denounced Dr . Wang and his Chinese Democratic Party State Department intelligence chief and CIA deputy director for "inciting students" and having had "a direct hand in the Ray Cline. Cline is a decades-long trusted operative for turmoil." George Bush . This has led some to conclude that the P.R.C. Shortly after taking over China Spring, Feng and his intelligence coup involving Feng was approved by the White associates began modifying their opposition to the P.R.C. House. regime to that of mild criticism. At the same time, Ray Cline Accusations against Feng center around a series of Minis­ formed a new publication, China and PacificRi m Letter, and tryof State Security internaldocuments which had reportedly placed Feng on its editorial board. There, Feng joined a been leaked to, or stolen by, opponents of the Beijing regime number of active and retired U. S. intelligence agents. and smuggled out of the mainland. The documents, and sup­ Cline's "investment" in Feng proved to be handy. Imme­ porting evidence, have been making the rounds of the Chi­ diately following the June 1989 massacre in Beijing, Cline nese student movement over recent weeks. dragged Feng from one Washington press conference to an­ One document, dated April 1989 and entitled "Summary other, in order to "explain" what had happened, and also to of Progress," deals with P. R. C. intelligence operations in the "explain" the behavior of President George Bush, whose United States directed against Chinese student organizations. cowardly betrayal of the massacred Chinese students was The document details Feng Shengping's role in "infiltrating" then provoking international outrage. China Spring. It notes that a state-by-state takeover of the Cline then worked with Feng to form a new organization U.S. organization , made possible by Feng and what the min­ known as the China Solidarity Committee. The stated pur­ istry refers to as his "task force," was then in progress. It pose of this new organization was to serve as a liaison be­ reports that actual opponents of the Deng regime within the tween the Chinese student movement and the U.S. intelli­ organization were being isolated. Other documents report on gence community. While it is unclear whom Feng is meeting Feng and his associates' role in regularly funneling informa­ with , Cline's close associates with Asian intelligence back­ tion to their superiors relating to Chinese student movement grounds include former CIA director William Colby and for­ leaders in the United States. mer Pentagon intelligence chief Gen. Richard Stilwell. China Spring was formed in 1982 by Dr. Wang Bing­ Given such connections, it is not surprising what the zhang, as the first U.S.-based student organization opposed line adopted by China Spring spokesmen has become. The to the Beijing regime. Its organizing among the Chinese Beijing students "went too far" and "should have negotiat­ student community in the U. S. proved to be quite successful. ed," they say. This is the White House line. It was also In the spring of 1987, Deng Xiaoping himself denounced Dr. shortly afterthe Tiananmen Square massacre that Feng began Wang in his speech before a plenary session of the 12th denouncing Lyndon LaRouche and EIR for "extremism" and Chinese Communist Party Central Committee. In that for being "crooks." This is also a White House line. Cline, for speech, Deng accused Wang of trying to "lead China on the his part, has taken to denouncing LaRouche before Chinese road to capitalism." students as the "devil."

EIR May 18, 1990 National 73 warning President Bush that it would not ratify any trade pact with Moscow while the Kremlin was conducting an economic embargo against Lithuania. The resolution passed with a sizable 73-24 vote. Anxious lest his Lithuanian policy Prunskiene sets become his political Achilles heel, President Bush agreed to set up a 40-minute meeting with the Lithuanian prime minis­ higher goals for ter on May 1. Even that meeting did little to assuage his more u. s. voluble critics. When the limousine of the prime minister Jones pulled up to the White House, it could not enter through by William the gates to drive up to the building. White House officials claimed that the door had suddenly jammed. Whatever the It was an astute and proud Lithuanian prime minister who case may be, the prime minister had to get out of her car, came to Washington, D.C. on May 2, a visit which the Bush show her passportto the guards at the gate, and then walk up administration did everything to prevent, wanting to avoid the drive to the door of the White House. casting any shadow on the summit meeting between Presi­ At a press conference the following day at the National dent Bush and Mikhail Gorbachov at the end of May. Press Club, Mrs . Prunskiene said that she had described for Prime Minister Kazimiera Prunskiene, the only woman President Bush the situation in her country and expressed her in the new Lithuanian government, had made inquiries with government's plans and hopes for the future . She made it regard to an American visa at the U.S. embassy in Moscow clear that "simply making statements about compromises on her return from a visit to Scandinavia in early April . is not adequate," when the Soviets were interfering with Whatever the details were of that particular encounter, she Lithuania's ties to other countries. Although she thought that was informed that this was not the appropriate time for such a summit meeting could serve a positive function, she did a high-level visit by a member of the new Lithuanian govern­ not believe that it was wise at the present moment to grant the ment, and that if she did come, it would have to be as a Soviets Most Favored Nation status, as that would indicate private citizen. When House Democrats got wind of this "implicit support" for their actions against Lithuania. Prun­ "cold-shoulder" treatment, they set off a flurryof protests, at skiene also explained how tbe lack of Western recognition which point the State Department and the American embassy of an independent Lithuania had been a major argument by beganmaking fervent denials of ever having had theslightest the Soviets to refuse to recognize the Lithuanian Declaration idea of denying the prime minister a visa. of Independence. She obviously knew her task was not going to be an easy The Lithuanian prime minister had the occasion to ad­ one. The failure of the Bush administration to act in the face dress several congressional groups, including the congres­ of increasing Soviet pressures on Lithaunia, culminating in sional members of the Helsinki Commission. In her remarks a full economic blockade just days before the Prunskiene she made it clear that the choice facing the U.S. administra­ visit, made it clear to all concernedthat the American Presi­ tion was not between Gorbachov and Lithuania, but rather dent was going to do everything possible to prop up the Soviet between a continued democratization in the Soviet bloc or a leader and that nothing was going to deter him from that return to the methods of the Empire. "In fact I would con­ goal. It was also clear from the overwhelming support which tend," she said, "that the recognition of Lithuania's indepen­ Lithuania was getting from Americans, including many dence by East and West would be a tremendous victory for members of Congress, that President Bush's appeasement democratization in the Soviet Union within the context of policy was not the most popular item on the agenda. perestroika." And besides, she noted later, "we cannot put the rights of the Empire over those of self-determination." Popular support In an interview with NBC, Lithuanian President Vytautas On her arrival in Canada on April 30, the first leg of her Landsbergis phrased the other side of that dilemma, "If the NorthAmerican tour, Prunskiene was met by representatives Soviets crush an independent Lithuania, then perestroika is of the Schiller Institute who greeted her with flowers and a finished. " copy of the book Friedrich Schiller, Poet of Freedom. As Prunskiene also stressed in her discussions with the con­ she was leaving Ottawa for her flight to Toronto, the prime gressmen that the Lithuanian government had always been minister was greeted with the strains of Beethoven's Ninth quite willing to negotiate with the Soviets and would be Symphony-which has become the unofficial anthem of willing to "temporarily suspend the quick and unilateral exe­ Lithuania-played at a Schiller Institute literature table in cution of the passed legislation if there were international the airport. Again in Washington, among the delegation to guarantees." They would not, however, under any circum­ greet her was a representative of the Schiller Institute who stances abrogate the March 11 Declaration of Independence, presented her with flowersas she came out of the terminal. a measure which the Soviets have made into a prerequisite On May 1, the Senate passed a non-binding resolution, for any negotiations.

74 National EIR May 18, 1990 Eyeon Washington by John Grauerholz. M.D.

Conan meets another barbarian ans. A more interesting question is As grotesque physiques and enragedfo rce replace the models of how he would fare against a trained martial artistof equal physical endow­ physicalfitness of the 1950s, steroid usage grows. ments, in a real fight-an opponent analogous, shall we say, to the Soviet military. n May 1, President George Bush cause the impression cohered with re­ The common denominator of Ar­ hostedO bodybuilder Arnold Schwart­ ality. nold's characteristic roles. is the zenegger at the White House. Arnold, Now Arnold is huge and quite amoral application of brute force and who is to anabolic steroids what Dolly strong, but not as strong as other less rage to problems that confront him. Parton is to injectable silicon, rose to decorative men his size. This is be­ His enemies are supposedly evil, but cinematic stardom in the movie cause strength is not the primary goal their evil appearsto consist of possess­ "Pumping Iron," and went on to star of his weight training, but the devel­ ing civilization and intelligence. For in "Conan the Barbarian" and its se­ opment of large, shapely, and well­ example, the villain in "Conan the quels, followed by roles as "The De­ definedmuscles-in other words, ap­ Barbarian" is played by the talented structor" and "The Terminator." pearance. He looks strong in a certain and literate actor James Earl Jones. George is apparently still trying to homoerotic way, but he is a beauty Thus the savage, Conan, is pitted shed his wimp image, especially in contestant. against the merciless wiles of thought light of his limp-wristed responses to The criteria for judging so-called and quasi-literate speech. communist brutality in China and male beauty have undergone a change Arnold claims not to have used Lithuania. After all, no one could ac­ over the last two decades. In the late steroids, and I suspecthe is telling the cuse Conan the Barbarian of carrying 1950s, Steve Reeves, the Arnold truth. He had the genetic potential to an umbrella. Besides, George proved Schwartzenegger of his day, starredin develop a massive physique and ap­ he could be as brutal as they come a series of movies based on the ex­ plied considerable physical and, yes, in his little urban renewal exercise in ploits of the ancient Greek heroHer­ mental effort to the task. Unfortunate­ Panama City. Of course there are cules. Reeves was 6' 2" tall and ly, he has become a "rolemodel ," and carpers who say this proves that weighed 225 lbs. when he competed those who seek to emulate him are George is both a bully and a coward. in physique contests. For movies, willing to accept the risks he declined. So George is proving his machis­ however, he would reduce to 205 Ibs. , Studies showing that 5% of high mo by pumping iron with Arnold, since it was felt that the magnification school students use anabolic steroids who, by the way, has been appointed of a cinemascope screen would make indicate the extent of the problem. head of the President's physical fit­ him appear grotesque at his contest Even if Arnold doesn't use steroids ness commission. This is an interest­ bodyweight. and polemicizes against their use, he ing commentary on the state of the Arnold, if anything, was heavier is emblematic of what one hopes to nation. in his movie roles than when he com­ attain by using them. All the profes­ In the old days it was the practice peted. Yesterday's grotesqueness is sional football players who tell kids to appoint an athlete , such as a track today's standard of beauty ,or whatev­ not to use drugscannot change the fact man or a baseball player, as the na­ er. Another example is 6' 4", 275 lb. that drug use is rampant in profession­ tional symbol of physical fitness. The Lou Ferrigno, who runs around in al athletics. Rev. Bob Richards, an Olympic green paint and a purple rage as the Contraryto some of the characters champion pole vaulter, known as the Incredible Hulk. The Hulk is the alter he portrays, Arnold is not stupid. He "vaulting vicar," is one such who ego of an enraged wimp, who trans­ accomplished what he set out to, and comes to mind. Another was the base­ forms into a green meany when sand . obtained the rewards of that accom­ ball player Stan Musial. These men is kicked in his face. plishment-money, fame, and a mar­ were highly skilled, stronger than av­ Arnold embodies the "aura of riage into the Kennedy clan via Maria erage, but hardly exemplary of mas­ strength" the way our military embod­ Shriver. As opposed to his more sive size or brute strength. Both off ies the "aura of power." Undoubtedly, working class colleague, Ferrigno, and on the playing field, they pro­ he could beat the tar out of the average Arnoldis the "yuppie Hulk." Now we jected an impression of being at least person just as the U.S. military beat know the true identity of the enraged civilized gentlemen. This was be- the tar out of the big, bad Panamani- wimp.

EIR May 18, 1990 National 75 Congressional Closeup by William Jones

conomic holocaust their goal was tomake the SEC the one Constitution for not observing the loomsE from Clean Air Act regulator over both stocks and stock statutory limitation," wrote Justice index futures, since having one regu­ Although the Senate on April 3 voted Byron White. lator, it is claimed, would help pre­ 89 to 11 to approve the Clean Air Act In a dissenting opinion, Justice vent fraud. As the Bush administra­ and the House Committee on Energy Anthony Kennedy said the majority's tion is faced with a general collapse of and Commerce passed its own clean ruling "disregards the fundamental U.S. financial markets, they are mak­ air bill on April 5 by a vote of 41 to 1, precepts for the democratic control of ing a frantic attempt to install top­ there is growing concern on Capitol public institutions." down control, hoping thereby to avoid So�e congressmen, anxious also Hill that this particular piece of legis­ the full brunt of a ratchet-collapse-a about the constitutional implications lation could create an economic holo­ move which would toll the death-knell of this decision, are preparing to take caust in the U.S. for this administration. the court on. Sen. Charles Grassley In comments on the House floor "If we do not take the necessary (R-Iowa) called the decision "a frontal on May 8, Rep. Tom DeLay (R-Tex.) steps to correct the problem now," assault on the separation of powers." said he considered it "very frightening said Brady, "we are more likely to see "We expect to oppose this deci­ when we have scientists in our country minor events trigger major market dis­ sion," said Sen. Strom Thurmond (R­ that are more interested in the emo­ ruptions like the ones we experienced S.C.), the ranking Member on the tionalism and firingpeople up than be­ in October of 1987 and October of Senate Judiciary Committee and one ing effective, than being honest." 1989." of the hill's co-sponsors. "We expect Noting that much of the debate around Senate Agriculture Committee to go rol the way with it." the Clean Air Act consisted of "a lot members seemed to give a rather cold "It's time for us to send a message of rhetoric, a lot of hysteria, a lot of reception to the proposal. CFTC to the Supreme Court: We are in emotionalism" and "little or no scien­ Chairman Wendy Gramm, a strong charge of this country and not you," tific facts," DeLay warned that the opponent of the move, warned that said Rep. Tommy Robinson (R­ Clean Air Act had the potential "of such "jurisdictional gerrymandering Ark.). shutting down America's economy will disrupt our markets ." bill would prohibit federal and for putting up to 3.7 million jobs The judges from issuing any judicial de­ at risk." cree requiring the federal or any state or local government to impose any new tax or to increase any existing tax ongress irked by or tax rate. rady proposes top-down SupremeC Court tax ruling controlB of economy More than 70 members of Congress In a dramatic move on May 8, Trea­ announced on May 3 they are sponsor­ sury Secretary Nicholas Brady and ing legislation to block a recent Su­ Undersecretary Robert Glauber told preme Court decision that allowed ongress told of Soviet the Senate Agriculture Committee judges to order local government of­ INFC treaty violations that the administration wants to re­ ficialsto raise taxes. In testimony before the Senate For­ move control over stock index futures In the recent case of Missouri v. eign Relations Committee on May 3, from the Commodity Futures Trading Jenkins, the Supreme Court ruled that Ronald Lehman, Director of the Arms Commission and give it to the Securi­ the judge in the case had exceeded his Control and Disarmament Agency, ties and Exchange Commission. authority in raising taxes himself. But said that the Soviets may be violating Currently, the CFTCregulates the a 5-4 majority said the judge did have the Intermediate Nuclear Forces Chicago futures markets, while the the power to make local officials raise agreements. Lehmann explained how SEC oversees the stock market. Brady taxes--even when the tax increases his agency had "found SS-4 related said the administration would file a violated Missouri law. equipment at an undeclared site." bill to that effect during the coming "A local government with taxing Lehman said his agency is invest­ week. authority may be ordered to levy taxes igating the discovery of the missile In a letter from the Treasury Sec­ in excess of the limit set by state stat­ parts . and would not "prejudge" retary to the committee, Brady said ute where there is reason based in the whether it was a violation of the 1987

76 National EIR May 18, 1990 INF treaty. An administration official tude with regard to withdrawing MFN Americans use cocaine at least once explained to the Washington Times status. a week-nearly three times previous that a spy satellite filmed two SS-4 Senate Majority Leader George official estimates. The report also in­ missile launchers and four transport­ Mitchell (D-Me.) strongly opposes dicated that there are about 2,000 ers last month at Kotovsk, near the the renewal of MFN status for the "hard-core" cocaine abusers in the Soviet border with Romania. The So­ P .R.C., and opposition is expected to District of Columbia, 53,000 in Vir­ viets claimed the equipment is "j unk," be intense. Outrage in Congress over ginia, and 47 ,000 in Maryland. according to the official. the Tiananmen massacre led to a se­ Committee Chairman Sen. Joseph Lehman also said the Soviet trans­ ries of sanctions imposed on China, Biden (D-Del .) said the figures sug­ fer of several SS-23 short-range mis­ but these were vetoed by the adminis­ gest that the nation's hard-core co­ siles to Eastern Europe, in violation tration. caine problem is "far worse than any of the INF agreement, is being investi­ previous guesses," and justifies a gated by ACDA "very, very seri­ "massive new effort" to increase ously." spending for drug treatment, aid for Sen. Jesse Helms (R-N.C.) said austerity-plagued cities, and building enate resolution the SS-23 missiles in East Germany, more prisons with treatment facilities. supportsS Latvia Czechoslovakia, and Bulgaria are No new proposals were contained in As the nation of Latvia declared its "clear-cut examples of the existence the report, although Biden has recom­ independence on May 4, a Senate res­ of Soviet covert INF forces." mended spending as much as $14.6 olution was introduced by Sen. Den­ billion next year to combat drugs. The nis DeConcini (D-Ariz.) to the Senate administration wants to spend $10.6 Foreign Relations Committee backing billion. the Latvian move. The resolution urges that the gov­ attle over Red China ernment of the United States "1) im­ BMFN status looms mediately offer its moral support for With the approach of the anniversary the Latvian decision to seek its inde­ of the massacre in Tiananmen Square, rank denies knowledge pendence from the Soviet Union, and President Bush is scheduled to make ofF prostitution ring 2) urge the Government of the Soviet a decision on whether to renew the A former female prostitute testified Union to respond to the Latvian offer People's Republic of China's Most for hours on May 11 before the to enter into negotiations with the three Favored Nation (MFN) trade status. House ethics committee about a sex­ elected officials of the Republic of The MFN issue will again bring to the for-hire ring that she claimed was run Latvia leading to full independence fore the question of whether there has from the home of Rep. Barney Frank for the Republic of Latvia." been any positive change in China (D-Mass.) with the knowledge of the with regardto human rights as a result congressman. Frank called the wom­ of PresidentBus h's Chamberlain-like an's statements "complete lies and appeasement of the Chinese butchers. fabricated stories about events which The British embassy in Washing­ ush War on Drugs did not happen." ton has already begun lobbying Con­ foBund inetTective Frank has submitted an affidavitto gress not to withdraw MFN status, A report issued by the Senate Judicia­ the committee from his former landla­ waming that its removal could strip ry Committee on May 10 said that the dy, who said she did not believe that Hong Kong of several billion dollars Bush administration was undercount­ Frank knew of the activities of his ho­ worth of business. Even Winston ing the cocaine-addict population of mosexual lover, Stephen Gobie, who Lord, a Kissinger protege who op­ the U.S. by a factor of almost 3 to 1, was operating the ring. In her sworn posed Bush's sending of National Se­ fueling charges that the administra­ statement, the landlady, Mary Jo curity Adviser Brent Scowcroft and tion's claims of success in the drug Daugherty, said she complained to State Department official Lawrence war are overstated. Frank about Gobie entertaining visi­ Eagleburger to China to toast the The report, described by commit­ tors in the summer of 1987. Frank, she butchers of Tiananmen in December tee staffers as the most comprehensive said, "seemed stunned," and subse­ of 1989, is proposing a go-slow atti- yet, concluded that about 2.2 million quently she "never saw Gobie again."

EIR May 18, 1990 National 77 National News

•

to General Noriega, and that other foreign the federal, government. governmentshad paid him $6 million more. In late April, more than 8,500 loggers "I don't know if you can call money from and mill workers drovetheir logging trucks SAC chief challenges the CIA tainted or not," Rubino said, "but into Portland, Oregon in protest against the it's certainly not drug money. " expansion of land taken out of production to Cheney budget rationale The government insists that Rubino has save the spotted owl. Another demonstra­ Gen . John T. Chain Jr. , commander of the been already paid $1 million or more and tion will be held in Kelso, Washington on Strategic Air Command, told reporters that insists it is under no obligation to turn over May 19. the decision to reduce by 50% the purchase drug-tainted funds to the jailed suspect. But On May 9, Ed Christie, the "Free of B-2 strategic bombers was motivated by Judge Hoeveler, noting that Noriega had LaRouche" candidate for governor of Ore­ fiscal, not strategic considerations, and re­ been a military officer for more than 20 gon, held a press conference and rally at the flectedthe actions of Pentagon civilian bud­ years , said he must have acquired some University of Oregon in Eugene, calling for get cutters and not the military views of the money legitimately. economic impact hearings before any envi­ AirFor ce. Gen. Fred Woerner, former head of the ronmental'bill can be enacted. Chain directly contradicted the argu­ Southern Command in Panama, told an au­ ment that "a reducedtarget base in Europe" dience at the Florida International Universi­ limits demand for the strategic weapon, an ty that the prospects of convicting General assertion made by Secretary of Defense Noriega are slim. Fired from his command Richard Cheney during a budget hearing in position over his opposition to the Bush ad­ late April. ministration invasion plans, Woerner said Eco-fascist insanity Chain emphasized that the weapons car, he had "very little confidence in the veraci­ ried aboard the B-2 are not designed for use ty" of statements made to the U. S. Congress on California ballot in Eastern Europe, and added that if further by Noriega oppositionist Jose Bland6n, in Over 800,000 signatures were filed in Cali­ reductions in the size of the fleet are pro­ particular, and said that he had made an fornia by environmentalists on April 25 in posed, he will not support the administra­ intensive intelligence investigation into ru­ an attempt to put the most draconian envi­ tion's arms control package for the upcom­ mors of Cuban infiltration of the Panamani­ ronmental policies yet into law through a ing summit. Chain's remarksreflect a grow­ an Defense Forces throughout his tenure, voter referendum. ing fear among military leaders that the de­ and found "no evidence of Cuban troops in Leading eco-fascists told the press they fense cuts of the Bush administration will Panama" during that time. expect to win in November. "There's no accelerate as the economic collapse wipes way we can lose ....This is a done deal ," out revenuepro jections. Chain has actively Bob Mulholland, the "Big Green" initia­ lobbied for Air Force programs in defiance tive's campaign manager told the New York of the secretary of defense. Times. Loggers protest against Policies which the referendum would mandate include a complete ban on all pesti­ environmentalist insanity cides judgedby a panel of environmentalists On April 28 more than 1,500 loggers, mill to have the slightest possibility of causing Judge orders government workers, and their families demonstrated in cancer or reproductive damage, a ban on Hoquiem, Washington against the environ­ foods produced out-of-state if a trace residue to list Noriega assets mentalist destruction of their livelihoods. of such chemicals is detected, and a cut in u.s. DistrictJudge William M. Hoeveler on With signs calling for an end to taking more the emissions of carbon dioxide of 20% by May 5 ordered U. S. governmentprosecutors and more forests out of production to save the year 2000and 40% by 20 I O. Oil drilling to providea listof$20 million in assets seized the spotted owl, demonstrators for an hour within thiee miles of the coast would be fromPanamanian Gen. Manuel A. Noriega. blocked the main north-south highway on forbidden unless the President declared a In issuing the order, Judge Hoeveler said the coast of Washington. national emergency. thatwhile General Noriega clearly could not The demonstration was organized by According to a preliminary study by use "ill-gotten gains" to pay his lawyers, contractors and workers outraged over the Spectrum Economics, Inc., of San Francis­ the government could not arbitrarily seize recent recommendation that 25% more of co, the initiative would increase gasoline money without proving that he had earned the old growth forests of Washington, Ore­ prices by 25-50¢ a gallon, raise electricity it through drug trafficking or other illegal gon, and northern California be set aside rates by more than 20%, force food proces­ means. to protect the spotted owl. In the Olympic sors, supermarkets, restaurants, and ship­ At the May 5 hearing, chief defense law­ Peninsula area of Washington State alone, pers to spend millions of dollars to replace yer Frank Rubino contended that American more than 10,000 jobs will be lost if this refrigerationunits, and would cost the state intelligence agencies had paid $11 million recommendation is acted on, as is likely, by 1 million jobs by the year 2000. •

78 National EIR May 18, 1990 Brildly

• THE TASK FORCE for Black Empowerment plans to file a petition ernmentof Croatia, now part of Yugoslavia. with the U.N. Human Rights Com­ Artukovic , a longtime California resi­ mission in Geneva, Switzerland on dent, was charged by OSI with having super­ human rights violations against black Americans dropping vised the mass murder of Jews and Serbs. He politicians in the U.S., its attorney, out of 'the system' was extradited by the OSI in 1986, subse­ Mr. Knox, said May 7 on WGCI-AM quently convicted of murder in a Yugoslav radio in Chicago. A study on "The Media and the Electorate" court, and died in prison in 1988 while ap­ released by the Markle Commission report­ pealing his conviction and death sentence. • THE LEADERSHIP of the ed that nearly two-thirds of the American The Post said his son Radoslav Artukov­ Washington, D.C. Democratic Party electorate no longer participate in elections , ic , had caught the attention of officials in was defeated May 3 in its attempt to according to May 6 press accounts. Congress with documents that suggest OSI force through a resolution calling on A large percentage of people surveyed officials may have withheld evidence of Mayor Marion Barry not to seek ree­ could not name the vice presidential candi­ contradictory testimony by two key witness­ lection. Committeeman Richard dates in the 1988 race; 33 million house­ es; misled a federal magistrate about OSl's Clark called it "unfair, undemocrat­ holds have not sent in their census forms­ role in organizing the extradition, by claim­ ic ," and "an execution order." a rate of non-compliance 12% higher than ing, falsely , that it was the Yugoslavians expected by the Census Bureau; and for ev­ who initiated the extradition, when it was • FAY YAGER, who faces ery $5 in taxes owed, $1 is being evaded. the OSI; and relied upon the testimony of a charges of child abuse stemming from "A dangerous disconnection is widening discredited witness. her efforts to help child victims of sa­ between the American electorate and its tanic abuse, told the May 7 Atlanta own political process," according to Eugene lourna1-Constitution that she's being Patterson, editor emeritus of the St. Peters­ persecutedby authorities because she burg Times and a member of the private knows too much. Yager said, refer­ fo undation which released the study. ring to organized rings of child abus­ This latest report comes on the heels of ers , "I've got the goods on them. The an upheaval in the television industry which LaRouche seven prepare bottom is going to fall out. " was caused by a Nielsen survey which dis­ Supreme Court appeal covered that over 4% of television viewers • HARVEY VAN FOSSAN of have "dropped out" in the last several years Lyndon LaRouche and six associates, who Springfield, Illinois, was fined $450 and are just not watching the tube . Burton were railroaded to jail last year, will file and sentenced to three years proba­ Yale Pines, director of the Heritage Founda­ their appeal to the U.S. Supreme Court on tion after fulfilling a city order to rid tion, claimed this is a "happy apathy" of a May 17. The brief will highlight facts show­ his lot of pigeons. Van Fossan was population satisfied with the performance of ing that every due process requirement was prosecuted under the Migratory Bird its government . sacrificedto efficiency or the "rocket dock­ Treaty Act afterthe poisonhe laid out et" known as Judge Albert Bryan's court. for the pigeons also killed two doves The high court will be asked to take this and two grackles. case because of what occurred-a 35-day rush to trial , the selection of a jury in less • THE NATION of Islam has an­ than two hours in the face of massive hostile nounced its first foray into electoral OSI 'Nazi-hunters' pre-trial publicity, and the court's issuing an politics, fielding Abdul Alim Mu­ order which prevented the defendants from hammad, spokesman for Louis Far­ under investigation putting their defense before the jury-pro­ rakhan , for Maryland's 5thCongres­ The U.S. Justice Department has begun a cedures which, if accepted as standard, will sional District; George X. Cure, for probe of alleged misconduct on the part of mean there is no justice to be had in the U.S. Delegate from D.C.; and the leading officials within the Office of United States today. The LaRouche case Shawn Brakeen for a D.C. school Special Investigations , according to the will be the test case to determine whether the board seat. May 8 Washington Post. U.S. will fully succumb to judicial fascism. Two congressmen, Reps. William Dan­ The U.S. government will have until • PRESIDENT BUSH has set up nemeyer (R-Calif.) and David Dreier (R­ mid-June to respond to the brief. The Su­ an emergency boardto try to head off Calif. ), have received letters from the DoJ preme Court will then decide if it will take a nationwide rail strike . "The nation­ stating that the department's Office of Pro­ the LaRouche appeal for briefing and argu­ al mediation board has concluded fe ssional Responsibility has "initiated an in­ ment, or whether it will condone the Fourth that the situation is extremely criti­ quiry" into the extradition of Andrija Artu­ Circuit's rubberstamping of Judge Bryan's cal," the White House said May 4. kovic, a former minister ofthe wartime gov- railroad .

EIR May 18, 1990 National 79 Editorial

Two steps backward, one stepfo rward

It now seems likely that the upcoming Bush-Gorbachov tem is in a process of collapse, with what that implies , summit will be stalled on disarmament questions, with the Russians are retreating to some degree , with a view the Soviets backing off from previous agreements, and of moving forward in the future---once the full effect increasing their demands on the United States. For ex­ of the Anglo-American financial economic debacle ample, they now demand linkage of signing of the occurs . START treaty to consideration of submarine-launched In the United States there is a prevailing insanity, cruise missiles (SLCMs) . The question is, what is the that military policy must be shaped around demands of military-strategic position of the world over the medi­ the budget, rather than on the question of the impera­ um to long term, and with emphasis upon those things tives of national defense. This gives rise to the wishful which must be taken into consideration immediately, thinking that the Soviets are no longer an enemy. respecting decisions, political and others , which must What the military imperative implies , is a buildup be made , because of their long-term effect? of Western economies, to enable them to carry the In general, it should be obvious that all ofthe strate­ necessary defense burden. In the United States this gic assessments , overt and possibly covert, around the means scrapping the policy of the past 25 years , scrap­ Bush administration, are incompetent. The Bush ad­ ping the rock-drug-sex counterculture , scrapping mon­ ministration, and the institutions functioning as part of etarism, scrapping the hideous cult of free trade , and the Bush administration team, have no comprehension so forth. It means going to a development policy in the of what is happening in the world. developing nations. That is, a policy of high-technolo­ We cannot say that the Bush administrationis dedi­ gy, scientific, and technological development. It means cated to preserving the United States as it was founded , scrapping so-called environmentalism, or at least the as a republic, in respect to adversary forces; that is, cult form in which it's rolling aroundReilly 's Environ­ forces which are adversary to that purpose, and that mental Protection Agency today . interest which the United States was founded to repre­ There are two ways of looking at military technolo­ sent, as a constitutional republic . Rather, the Bush ad­ gy: One is the development of the most advanced mili­ ministration is itself betraying, irrevocably, if it contin­ tary technologies, such as those implied by the original ues the present course, the most fundamental interests LaRouche policy for a Strategic Defense Initiative. of both the United States as such and Western civiliza­ From such a course of in,{estment, productivity spin­ tion as a whole. offs into the general economy would essentially make On the other side, the Soviets maintain a commit­ the program self-financing. ment to preserving the historic Russian "Third Rome" The other approach, assuming a dominant pacifist policy. The Russians are willing to accept a tactical mood in policy circles because of fear of offending the retreat in eastern Europe , in order to regroup their forc­ Soviets , at the minimum we must defend the military es, and reorganize their armed forces to incorporate logistical potentials of the economy to allow rapid rear­ technologies based upon new physical principles, such mament. This means a surge of industrial activity and as radio-frequency devices. energy-dense, capital-intense investment per capita, In that light, what the Russians are doing, to what­ and large-scale infrastructure investment and invest­ ever degree they are or are not aware of this fact, is that ment in the development of the machine-tool industry . they are copying Lenin's "two steps backward, one Unfortunately, the Bush administration is wedded to step forward ." Faced with the fact that they cannot hold Maggie Thatcher's lame duck free-market economics, certain ground, under present conditions, but also the just as they are blindsided about the reality of Soviet fact that the Anglo-American financial economic sys- policy .

EIR May 18, 1990 National 80 The story of those who paved the way for the LAROUCHE American Revolution, long before the Decla­ ration of Independence: MassachusettS Puri­ YOU MAY LOVE HIM tan Cotton Mather, Virginia's Governor Alexander Spotswood, British satirist Jona­ YOU MAY HATE HIM than Swift .... How the

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AMERICAN LEVIATHAN

Ad ministrative Fascism under the Bush Regime

EIR 's Special Reports have proven devastatingly correct and ahead of their time over and over again. This intelligence dossier on the U. S. Secret Government, distilled in spring 1990 from two decades of investigation by hundreds of independent researchers on three continents, includes: FREEAT LAST • Lyndon LaRouche's "U. S. Elites Adopt Administrative Fascism. " Why the imprisonment of the economist and former NO THANKSTn BUSH presidential candidate means the self­ destruction of the U. S. Establishment.

• The first full-length expose of the career of Attorney General Richard Thornburgh, FREE A-rtzASfi the inventor of the so-called "Thornburgh Doctrine," used to justify the invasion and the slaughter of thousands of civilians in Panama.

• Published for the first time in the West: The ties of Col. Oliver North's "Enterprise" to the East bloc, especially to East German communist arms and drug dealer Alexander $100 Schalck -Golodkowski. 212 pages, illustrated, with index. Also postpaid' available in German-language edition. per copy • A rare insight into the accord between

Washington and the Soviet and Chinese Make check or money order payable to: dictators, resembling the "family" affairs of private bankers and mafia chieftans. EIR News Service, Inc. p. o. Box 17390, Washington, D. C. 20041-0390 • What's behind it all: the racist, malthusian imperial policies of Bush's ego-ideal, MasterCard and Visa accepted; include signature, card number, and President Theodore Roosevelt. expiration date,