"EIR has commissioned this White Paper to bring the truth on the developing Panama crisis to American citizens and lawmakers, so that decisive action can be taken to stop this campaign, before the United States faces a new strategic crisis on its southern flank."

White Paper on the Panama crisis Who's out to destabilize the U.S. ally, and why

While the New York Times and other major media pump out "news" on Panama to fit these plans, North Carolina's Sen. Jesse Helms, the U. S. State Department, and sections of the Reagan administration have joined in a campaign to overthrow Panama's government and Defense Forces, allegedly because they have been taken over by the narcotics trade. Therefore, the United States must bring to power Panama's "democratic opposition" movement. As this report shows, the principal figures in the "democratic opposition" movement are drug-mon�y launderers, lawyers for cocaine and marijuana traffickers, terrorists, and gun-runners. Their presidential" candidate, Arnulfo Arias Madrid, is a life-long Nazi.

The report i.lcludes:

• A "Who's Who" in the drug mob's campaign to overthrow Panama's government; 100 pp. • The facts on how "conservative" Jesse Helms has joined with State Department one-worlders to implement a destabilization Order your copy today! campaign designed by the U.S. Liberal Eastern Establishment; Price: $100 • How David Rockefeller's Trilateral Commission and the New York Council on Foreign Relations created the "off-shore" From banking center in Panama, to handle their debt-and-drug loot- . ing of South America; News Service �TIill • Proposals on how the United States can help secure Panama, P.O. Box 17390 through a sertes of Canal-centered development projects, which Washington, D.C. break Panama's economic dependence on the "off-shore" 20041-0390 economy run by the international banking cartel. Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. From the Editor Christopher White. Warren Hamerman. William Wertz. Gerald Rose. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot. Mary Lalevee T he cover picture celebrates one of the most beautiful achieve­ Agriculture: Marcia Merry ments of the kind of economics identified with Alexander Hamilton Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg. and explicated in the Feature by Lyndon LaRouche this week: the Paul Goldstein rapid advances in man's dominion over nature embodied in our Economics: David Goldman European Economics: William Engdahl. century by aeronauticsand the conquest of space. It is an appropriate Laurent Murawiec Europe: Vivian Freyre Zoakos image for this "Independence Day" 1987 issue of EIR. It reminds us lbero-America: Robyn Quijano. Dennis Small of the kind of leadership the United States ought to take in the world Law: Edward Spannaus Medicine: John Grauerholz. M.D. today. Middle East: Thierry Lalevee When the founding fathers signed the Declaration of the Inde­ Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George pendence of the United States from the British Empire 211 years Special Projects: Mark Burdman ago, they stated that certain "unalienable rights" pertain to all of United States: Kathleen Klenetsky mankind, and foresaw that their actions would light the way for INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura freedom around the world. Bogota: Javier Almario Traitors in our State Department and the semi-official "Project Bonn: George Gregory. Rainer Apel Chicago: Paul Greenberg Democracy" network are trampling on the political independence of Copenhagen: Poul Rasmussen our allies around the world. In Panama, they are supporting the Houston: Harley Schlanger Lima: Sara Madueiio lunatic ravings of a Fidel Castro-allied gnostic as the pretext for Los Angeles: Theodore Andromidas overthrowing the staunchest foe of Soviet narco-terrorism in the Mexico City: Josejina Menendez Milan: Marco Fanini region, Defense Forces Commander General Noriega (page 32). In New Delhi: Susan Maitra Korea, they openly support an operation which will lead to the Paris: Christine Bierre Rio de Janeiro: Silvia Palacios neutralization and reunificationof the peninsula-under communist Rome: Leonardo Servadio. Stefania Sacchi rule-as the dossier on page 46 shows. A key role in the Korean Stockholm: William Jones United Nations: Douglas DeGroot destabilization is being play by West German's Protestant Church, Washington. D.C.: Nicholas F. Benton the EKD, which has just held a lovefest with the Soviet Union in Wiesbaden: Philip Golub. Goran Haglund Frankfurt (page 44). The National report this week includes three stories which would EIRIExecutive Intelligence Review IISSN 0273--6314) is make gripping fiction if they were not true-tales of the U. S. De­ published weekly 150 issues) except for the second week of July and last week of December by New Solidarity partment oflnjustice: the sham indictments ofthe General Dynamics International Press Service P.O. Box 65178, Washington, DC 20035 (202) 785-1347 case, the groundless persecution of space scientist ArthurRudolph, European HeDllquarkrs: Executive Intelligence Review and the outrageous "bankruptcy" proceedings against companies of Nachrichtenagentur GmbH, Postfa.h 2308, Dotzheimerstrasse 166, D-62oo Wiesbaden, Federal Republic friends of Lyndon LaRouche. Each of these actions has played into of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, the hands of the Soviet KGB and undermined U.S. defense capabil­ Michael Liebig In Denmark: EIR, Rosenvaengets Aile 20, 2100 Copenhagen ities. For whom, indeed, does Criminal Division head William Weld OE, Tel. (01) 42-15� really work? In Mexico: EIR, Francisco mas Covarrubias 54 A-3 Colonia San Rafael, Mexico DF. Tel: 705-1295. Our next issue will come out in two weeks, as we celebrate the Japan subscription sohs: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takalanobaba, Shinjulm-Ku, Tokyo July 4th holiday on our usual schedule. 160. Tel: (03) 208-7821. Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO Academic library rate: $245 per year Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 785-1347 TIillContents

Departments Science & Technology Economics

11 Dateline Mexico 14 The Russian lead in radio 4 Wriston and friends press Narco-bankers get brazen. frequency weapons for banking reorganization One reason Gorbachov doesn't The fa ct is, the system is 50 Northern Flank mind banning nuclear weapons in bankrupt, and no reorganization, Perle wrecks U.S.-Norway Europe is that he's got something but only a substantive policy relations. better.Robert Gallagher reports on change, will have any effect. Russian breakthroughs in RF as an anti-personnel weapon. 51 Report from Bonn 6 Africa in worst food crisis yet; needs French Illusions of a Franco-German defense. 'Marshall Plan' approach Have you noticed the absence of 52 Andean Report AIDS Update headline stories about food shortages or famine in Africa? Do Irregular warfare in Venezuela. not conclude the situation has 13 Soviets take public health, improved. 53 Report from Rio research measures Brazil is not a 'republiquette.' 9 Europe moves toward 56 Top Israeli doctor blasts anti-dollar ECU bloc 54 Report from Rome euthanasia policy The 'Germanization' of Italy. 12 Business Briefs 57 French minister: AIDS is 55 From New Delhi no venereal disease Haryana: dangerous portent. 68 Dole's AIDS bill seeks to 63 Year of the Constitution cut costs of dying The LaRouche case: the bankruptcy seizure that wasn't one.

72 Editorial Independence from economic ruin.

Correction: Last week we misreported the source of statements by NATO Supreme Commander Gen. Bernard Rogers attacking the zero-option deal ("General Rogers: Go slow on arms control," p. 70). The criticisms appeared in an interview with Washington Post reporter Jim Hoagland, published June 17. Also, in "Justice Department: 'lawless and out of control,'" pp. 60-61, we reported the wrong name of Attorney General Meese's lawyer, who is Nathan Lewin. •

Volume 14 Number 27, July 3, 1987

Feature International National

32 u.S. backs satanist who 58 Weld plot against defense leads riots in Panama set back as GD case ends They were run in support of a man The sudden dropping of all who is a long-standing close friend criminal charges against General of Fidel Castro, a gnostic Satan­ Dynamics and former NASA worshipper, and the leading administrator James Beggs raises "Panamanian connection" of a bigger questions about the major South America cocaine Department of Justice. pipeline into the United States. The National Air and Space Museum in Washington, 60 OSI hoax exposed: the D.C.-a testimony to the technological achievements 36 Kremlin orders war on of the "American System" of economics. Here we Rudolph travesty see the Wright brothers' "Ayer"; the X-IS rocket John Paul II West Germany's exoneration of plane, a precursor to manned spacecraft; and the Apollo The global mobilization by the space scientist Dr. Arthur Rudolph II capsule, which carried the first men to the Moon "Zionist lobby" against the Pope in 1969. exposes the "Nazi-hunting" office was ordered directly from Moscow in the U.S. Justice Department as via Edgar Bronfman's World a witting KGB tool. 22 In defense of Treasury Jewish Congress. Secretary Alexander 62 Eye on Washington Hamilton 37 Behind the UNICEF child McFarlane says debt is gravest Under his program of recovery, porn scandal crisis. our national credit was restored, our banking system became the 39 Garcia sticks to anti-IMF 65 Herbert Hoover's vice soundest in the world, and policy in face of cabinet president? The dilemma prosperous growth was unleashed crisis facing George Bush throughout most of our nation. Lyndon H. LaRouche, Jr. The intelligence "old boys" that 41 Project Democracy expose compares his own program of surround him can't make him recovery. shakes Constituent President without a substantive Assembly in Brazil policy, namely, LaRouche's. Political circuits in Brasilia were blown out by an EIR report on 67 Elephants & Donkeys Brazilian links to Oliver North's Dems search for conservative network. image.

44 West German Protestant 68 Congressional Closeup Church prepares to bolt to Moscow 70 National News

46 The State Dept., church, and private networks now destabilizing Korea What is now afoot there is not aimed at democracy, but at consummating a deal with the Soviet Union and China.

56 International Intelligence • �TImEconomics

Wriston and friends,press for banking reorganization by Chris White

Walter Wriston's old schemes for the reorganization of the Juarez." Debt would be reorganized over the long tenn,for U.S banking system are being surfaced again at ongoing repayment based on wealth generation from large-scale infra­ conference committee hearings of the House and Senate structure and technology-intensive, capital-intensive devel­ BankingCommittees on this year'sbanking bill. opment programs. Walter Wriston is the fonnerchainnan of Citibank, who, Export expansion, from within the United States and working with then Treasury Secretary Donald Regan, during other advanced-sector nations, would be the necessary cor­ the course of 1982, secured the implementation of the poli­ relative of such activity, which would not only put the bank­ cies on banking deregulation and Third World debt which ing system on a sounder footing than at any time in the last actually resulted in the bankruptcyof the U. S. banking sys­ 100 years, but would also foster economic revival in de­ tem. He is most closely associated with the revival of "free pressed advanced-sector countries themselves. enterprise" lunacies, inside and outside of government, dur­ Now the idea is to treat the U.S. economy, that is the ing recent years. savings, pensions, mortgages of U.S. households, in much At the time, it was the counsels of Wriston and Donald the same way as the economies of the developing sector were Regan which prevailed within the administration over alter­ treated in the period from 1982 onward. A select group of native banking and economic reorganization plans put for­ larger banks would arrogate to themselves the right to suck ward by theeconomist and Democratic presidential candidate up the diminishing wealth produced and saved nationwide to Lyndon H. LaRouche, Jr. Wriston and Regan bought time preserve their own political power. for their financial system by redirecting world credit flows such that prevailing patterns of trade between the United Blue ribbon solutions States and especially the nations of Ibero-America were re­ These matters, like the current reorganization discussion, versed almost overnight. The U.S. banking system became are not actually addressed directly in the banking bill pres­ dependent on inflows of foreign funds, originating in either ently before Congress. Instead that bill proposes the creation the genocidal looting of Third World economies, or from the of a special "blue ribbon" type commission to examine the internationaldrug trade, and running at between $150 to $180 current problems of the banking system, and come up with billion per year. solutions. Not suprisingly, the solutions, like the problems, At the time, LaRouche had proposed that the U.S. gov­ are of Wriston's making, and will be much worse in their ernment adoptthe internationalbanking and credit reorgani­ effect, if ever adopted, than the so-called solutions he and zation plan which subsequently became known as "Operation Donald Regan worked on duringthe period 1982-83.

4 Economics EIR July 3, 1987 The blue ribbon commission has been argued for by the er View," first published in January 1987. In Chapter 3, present Chairman of the Federal Deposit Insurance Corpo­ "What Are the Alternatives," Corrigan argues against what ration (FDIC), William Seidman, on the op-ed page of the he calls "re-regulation," "muddling through," and "whole­ New York Times. Seidman considers that present accumulat­ sale deregulation" to advocate "a better alternative." This is ed stresses and strains in the banking system are not so much represented in the words of none other than Walter Wriston: the result of failures in economic policy, but rather the result "If the National Bank Act was amended to say that everything of constricting, outdated regulatory mechanisms left over a bank holding company can do, the national bank can do, from the banking reorganization of the 1930s. I'd be extremely happy. It would simplify administration and Seidman recommended that if the commission is estab­ would make it perfectly clear to the customers that our $7 lished, then proposals put forward by the Association of Bank billion of capital is behind everything we do." Corrigan him­ Holding Companies, Gerald Corrigan of the New York Fed­ self argues that whether to maintain or not, the distinction eral Reserve, and the late Walter Heller from the Federal between banking and commercial businesses, is the critical Reserve Board, should serve as the basis for the co.m decision that has to be made, and in testimony before Con­ mis­ sion's investigations. gress, he has said that if the lines are to be blurred , then the Not surprisingly the cited drafts are not only coherent federal government should not have to pick up the tab. with Walter Wriston's old plans, but also with trial balloons In short, the fix is coming down on one of the biggest rip­ that have been floatedout of the James Baker-led Treasury offs in history. The agenda has been defined. The protago­ Department in recent weeks. nists have been lined up. The trial balloons have been floated. The proposals are couched in the language of the dere­ The institutional mechanisms have been put into place. gulators, that is the restrictions of the Glass-Steagall Act If the present banking committee conference, which is would be removed to permit bank holding companies to own primarily dealing with a short-term rescue package for the subsidiaries in insurance, securities trading, real estate deal­ collapsing thrift institutions, fails to establish the Blue Rib­ ing, and so on. In fact, the proposals would result in a cartel­ bon Commission , the Association of Bank Holding Compa­ ization of U.S. banking, leaving a handful of large holding nies legislation is on the table. And, Alan Greenspan, a public companies operating a branch banking system on the model proponent of those kinds of ideas, is moving into the Federal of Canada or the British Isles, while local banks, servicing Reserve in August, from which position he would be able to the needs of the local community, are either assimilated into implement the same kind of package, by regulatory rather the system, or are allowed to disappear. than legislative methods. In the Canadian, or British branching system, the big event of the week, as far as the branch in a small locality is concerned, is the deposit of the community's weekly pay­ The trouble is. . . checks. Decisions about what to do with those checks after The trouble is that these present schemings, like the Wris­ deposit is determined centrally rather than locally. ton-Regan efforts of 1982, ignore the reality of economic This time, unlike 1982, the proposals are not necessarily collapse, and assume that by reorganizing the deck chairs, designed to buy time for the system against a looming crash, one more time, one can also save the Titanic from founder­ but as the outline for a reorganization plan to go into effect ing. after a crash, when the little fish, so to speak, would have There is no banking reorganization that can, or will ever been shaken out, and the sharks scavenge for the juicy left­ work, if that banking reorganization is not predicated on overs. changing the economic policies on which the banking system The Association of Bank Holding Companies is propos­ rests. The banking system is not in effective bankruptcy ing for passage in 1988, or perhaps sooner, what it calls, because of out-dated regulations, but because economic pol­ "The Financial Services Holding Company Act." This would icy has depressed wealth generation, and fostered the growth "permit bank holding companies and their competitors to of usury , speculation, and indebtedness. To restore the health engage in activities financial in nature on an equal footing. of the banking system, it would only be necessary to do what The banking industry has been thwarted for a number of years LaRouche proposed, against Wriston and Regan, back in in its attempt to secure amendments to the Bank Holding 1982. Make monetary policy subordinate to the imperatives Company Act to authorize a full range of financial products of economic policy. Direct credit into wealth-generating, and servicesfor bank holding companies ....In exchange employment-creating investment in technology-intensive for authorizing the ownership of a full-service bank by finan­ modes to create the real wealth which will ensure the sound­ cial competitors, the FSHCA would authorize fun entry by ness of the banking system. Measures which will increase the banking industry into the insurance, real estate, and se­ the stranglehold of the usurers over the economy will only curities fields." increase the vulnerability of the banking system, and accel­ Corrigan's views from the New York Fed were presented erate the moment at which the final reckoning for Walter in a document entitled, "Financial Market Structure: A Long- Wriston's system comes.

EIR July 3, 1987 Economics 5 Mrica in worst food crisis yet; needs French 'Marshall Plan' approach

by Marcia Meny

Have you noticed the absence of headline stories about food This reflects a process of enforced economic stagna­ shortages or famine in Africa? Do not conclude the situation tion-the policy of the World Bank-International Monetary has improved. Despite better weather in some regions of the Fund to obstruct any form of infrastructure-development for continent, the food supplies for millions of people have be­ agricultural and industrial advance. come even more marginalized in the last two years. Mean­ Food availability per person has markedly decreased in time, deadly AIDS and other diseases are spreading. Only a Africa since the 196Os. For many nations, total annual food broad-scale "Marshall Plan" approach, of the type proposed production decreased, and food aid and purchases did not by French Agriculture Minister Fran�ois Guillaume, will make up the difference. The bar diagram (Figure 1) shows make the difference. the latest calculations of how much food is needed-but In the United States, the media coverage ignores the unprovided for-in all of Sub-Saharan Africa for merely starvation crisis in Africa, the shutdown of food output po­ minimal nutritional requirements. For the year 1987/88, an tential in the United States, and proposals such as the Mar­ estimated 9.5 million tons of cereals is required over and shall Plan approach, which French President Jacques Chirac above expected commercial import levels, and food aid presentedto President Reagan in March. The media defer to pledges. Where is it to come from? No one speaks of it. the myths of a misguided President of the United States, who Food aid shipments for Africa and other points of need in reality is acting out the script proposed to him by the same cartel banking and commodity groups whose policies are destroying Africa. In his June 16 television address to the nation after his FIGURE 1 Europe trip, President Reagan said, "I think it's notable that Unmet cereals needs, Sub-saharan Africa, so many American farmers today would like to see agricul­ 1986/87-1987/88 ture in the United States and abroad returnto the free-market Million tons basis. They know government subsidies in other countries are causing a worldwide glut of farm products and a shrinking market for American goods. " The information below shows that far from a glut, food supplies per person in Africa are dropping drastically, and the means to obtain food are likewise disappearing, under conditions of cartel-dominated "market forces." There has never been a greater market for American-grown or Europe­ an-produced food. There is an emergency need for food.

Food dependency grows 1.5 A USDA study of 25 African nations-including both oil-exporting as well as very low income nations,shows that in the last 20 years, there has been a sharp increase in food 0.5

imports (both commercial and donated). As of the period O _____---' �I=�-_ 1982-84, many nations came to import over half of their food supply, including such "agricultural" nations as Gambia, Somalia, Lesotho, Morocco, as well as oil-producing nations 1IIIIIIII86/87 such as Algeria, Egypt, and Tunisia. Source: u.S. Department of Agriculture.

6 Economics EIR July 3, 1987 are going down. According to Food and Agriculture Orga­ In the decades following the World War II, most food aid nization estimates, worldwide cereals aid in the July 1986- went to Asia. However, in the early 1970s, Africa's share June 1987 trade year will be about 10.2 million tons, down began to grow, and by 1980, Africa' received half of all the more than 15% from the 1984/85 peak of nearly 12.5 million world food aid going to developing nations. Between 1966 tons. That was the year of the publicity of the famine in and 1985, food aid to the continent grew at an annual rate of Africa. But since then, the media have regarded the "story" over 10%, going from an average of 480,000 tons up to 5 of food shortages as passe, especially NBC-the television million tons. In the Sub-Saharan African countries, food aid network that wrongly took credit for "discovering" the Afri­ amounted to only about 2% of all' food consumed in the can starvation in October 1984. 1960s. However, by the early 19808, it was well over 50% U.S. and European governmentand media officesinstead of food supplies for some places. In 1981 in Somalia, food have been publicizing the "problem of surplus cereals aid was 85% of the food supply. stocks"-corn in the United States, and wheat in Europe, as a burden with no place to go. There are proposals in Brussels Inability to grow or buy food to bum European Community wheat. In the United States, The graph of the fall in commodity prices for principal com is being burnedfor gasohol additive. African exports (Figure 2) shows part of the source of the As the bar diagram shows, the region of worst unmet present crisis. The policy of the cartels has been to pay low need is East Africa. Food output is down in Ethiopia for both prices. Groundnut (peanut) prices werecut by one-third from the 1986-87 and 1987-88 season. There may be a good sorgh­ 1973 to 1984 . Beverage prices fell: coffee , cocoa, and tea um crop in the Sudan, but the civil strife in the southernpart dropped 40% between 1977 and 1984. of the nation requires pre-positioning food stocks around the In tum, the cartel-serving World Bank and International country where needed, before the rainy season begins. Monetary Fund have refused to permit credit for African In Southern Africa, a severe drought has affected all of nations to diversify into growth-based alternativeagricultural Zimbabwe and parts of Zambia, meaning that com output and industrial projects. Therefore, the politically "indepen­ may be reduced by at least 30% in Zimbabwe and 20% in dent" nations of Africa, have been economically captive to Zambia. In Mozambique, at least 6 million people (out of cartel-imposed monocultures, that now cannot provide even 14.4 million) need food and other assistance. the means for food .

FIGURE 2 Index of world prices for major African exports, 1966-84 1966-68= 1

7 r------,

o 00 o 0 o o 6 o Coffee: o o o 5 o

4

3-

2

OL-__� ____ � __ � ____ � __ � ____ � __ � ____ � __ � ____ � ____ � __ � ____ � __ �I----�--� 1966/68 70 72 74 76 82 84

Source: U.s. Department of Agriculture.

EIR July 3, 1987 Economics 7 To acquire food, some nations could only go into debt, and hope for aid. The current account deficit for 25 African Currency Rates nations grew from $1 billion in 1970, to $13.8 billion in 1983. In 1983, Nigeria's deficitstood at $4.188 billion, and The dollar in deutschemarks Egypt's amounted to $3.544 billion. New York late aftemooa IIldq Debt service as a percent of the value of exports rose dramatically between 1970 and 1984. For Kenya, from 5.4% 2.1' to 22.9%; for Somalia, from 2% to 29%; for Morocco, from 8.5% to 38%; for Nigeria, from 4% to 30%; for Egypt, from 2." 4.4% to 80%. 1.90 Egypt, not included in the bar diagram countries of Sub­ Saharan Africa, is the largest recipient of food aid in the 1.80 world. The 1974 Camp David accords mandated sending 2.5 .- - � million tons of food annually. In Egypt's food aid of � 1978, 3 1.70 million tons peaked at 50% of total food imports. Since then, I SIS Sill S/19 S/26 6/2 6/9 6116 (,/23 Egypt has imported more food annually, and received less food aid-down to 2 million tons in 1985. Similarly, for The dollar in yen NewYork late afternoon fixing Morocco, food aid represented 97% of all food imports in 1972, then food aid decreased, and imports increased. In 170 Tunisia the same pattern prevailed. At present, in these nations and others, if the means to 160 commercially import, as well as the availability to food aid is cut off at the same time, then the consequence is political 150 disintegration and death. There have been food riots and � - strikes in Egypt since 1980, in Tunisia and Morocco in 1984; 148 � � � - and in the Sudan in 1985. In 1986, Nigeria limited debt repayment to what the gov­ 1311 ernment fe lt the economy could bear. In May, 1986, at a S/5 5112 �1I9 S/16 6/2 6/9 6116 6123 special session of the U.N. General Assembly on economic The British pound in dollars problems of Africa, African nations requested $45 .6 billion 'lie" \"ork lale afternoon 6xin� in additional aid (in contrast to the 1985 level of $7 billion in

aid), and $35-55 billion worth of new debt relief for 1986- 1.70 90. So far, the response from the West has been rhetoric � 1 '-" � � about "the market place" from President Reagan and the State .60 "' Department, and continued backing for the deadly World � J.SO Bankand International Monetary Fund. �- � -

1.48 Point of no return �- .-I--� The continent of Africa is undergoing genocide . The debt 1.38 is unpayable. Emergency quantities of food cannot be pro­ SIS SII2 SII9 6/2 6/9 6/16 6123 duced in the circumstances ofthe collapse. There is no "mag­ 5/26 ical marketplace" for current African exports. The proposal The dollar in Swiss francs of a "Marshall Plan" approach, by the EC and allied Western Ne .. York lale afternoon 6xing nations, is the o�ly means to reverse the disaster. Emergency food aid quantities can be determined and met out of remain­ 1.80 ing "surplus" stocks in Europe , North America, and other points of reserves. Quantities for the next fiveyea rs-includ­ 1.70 ing animal stocks-can be determined, and commissioned 1.60 from both African and food-exporting nations farms-in a high-technology "contract victory garden" approach. Simul­ I.SO --"""" taneously, building projects for emergency and long-term � """ """'Ii� � logistics infrastructure can be initiated to provide the basis 1.48 1 for rebuilding and developing the continent out of the shame SIS 5/12 � 19 5/26 6/2 6/9 6/16 6/23 and misery of the AIDS and starvation holocaust.

8 Economics EIR July 3, 1987 the dollar to resume its recent free fall. 'The ECU could lessen the dollar risk," stated a spokesman for one of seven Europe moves toward Western European banks which constitute the ECU Banking Association. These banks, which deal in ECU transfers , are anti-dollar ECU bloc dominated by Credit Lyonnais and Belgium's Banque Brus­ sels Lambert, both part of the Trilateral Commission's finan­ cial network. It is they who have been pushing a supra­ by William Engdahl national anti-dollar currency in recent years, and have been pushing to get the one major obstacle, the conservatism of Addressing the annual conference of the Center for European the Bundesbank, softened. Policy Studies in Brussels, Trilateral Commission monetarist Lest anyone doubts that sovereignty is at stake , the Ger­ Niels Thygesen of Denmark unveiled a drastic proposal to man resistance to an ECU system is written into Germany's create a supranational European Central Bank. The new in­ constitution, which created the independent central bank aft­ stitution would be modeled on the American Federal Reserve er the war in 1947. The prohibition against allowing bank System, with its 12 regional districts. deposits in'indexed units like ECU was a result of the bitter The Thygesen proposal reflects the policy decisions of 1930s experience of Mefo-bill fiat money under Hitler's Eco­ leading Western European monetary and banking circles. nomics Minister Hjalmar Schacht. Today, this lesson's re­ They are systematically, and suicidally, pressing for creation versal is being downplayed as a minor technical concession. of a European-wide currency, the ECU (European Currency "The Bundesbank move removes the last obstacle to real Unit), an indexed accounting unit of weighted currencies private use of the ECU," emphasized one ECU banker in originally created some years ago to handle the bookkeeping Brusselsto the writer. Two weeks before , the Spanish Central involved in agriculture trade among European Community Bank also removed prohibitions beginning July I, and will nations. quote ECU alongside the franc and other select currencies The idea behind the new bank and currencyunit , or rath­ for private bank accounts and trade. "The effect of both er, the illusion, is to separate the 12 nations of Western decisions could significantly increase the future role of the Europe from the ongoing U.S. dollar collapse. ECU ," said my banker source. "A proposal along these lines may appear radical and naive," Thygesen told his select audience of central bankers Giant bank cartels and European Community fu nctionaries. But the force of In parallel with the ECU effort, leading private bankers events will make it a reality. tied to the Trilateral Commission' are busy promoting the His remarks were delivered on June 19, three days after process of bank cartelization into a tiny handful of "super the announcement of a major policy reversal on the ECU by banks" similar to what Citibank and others are pushing in the Europe's most powerful central bank, the Bundesbank. It United States. "Get ready for the single European market," will now allow private bank accounts in Germany to be de­ Jean-Maxime Leveque told a Hamburg international bank­ nominated in the ECU . ers' gathering on June 23 . Leveque, chairman of Credit The ECU, in effect, is the currency of the European Lyonnais, said the process of creating uniform financial and Monetary System (EMS), the arrangement created in 1978 monetary rules inside the 12-nation body by 1992 is forcing to stabilize the EC economies from a devastating dollar col­ enormous changes in the structure pf European capital mar­ lapse under the policies of the Carter presidency. A firstphase kets. "There will most likely be sizeable linkups" among of the scheme was all that could be implemented at the time, banks across Europe. Regional medium-sized banks will be given national opposition. A second phase of the EMS scheme swallowed up by "super-banks" as national restrictions on is exactly what fellow-Trilateraloid Thygesen has now un­ capital flowscolla pse. Leveque also predicted that the ECU/ veiled in Brussels: the creation of a European Central Bank central bank plan will be the "next stage." to destroy remaining sovereign national control over curren­ It won't work. The Trilateral "ECU bloc" (first proposed cy and credit in the world's largest economic region, the by the Soviets a few years ago) will only aggravate the pro­ European Community, composed of 12 nations and 321 mil­ cess of dollar collapse, by encouraging further flight out of lion people. dollar-based trade. This could become the trigger for the greatest financialcatastrophe in history. European banks are Bundesbank reverses stance so integrated into dollar obligations through the complex On the surface, the Bundesbank move is merely techni­ interbank clearing system, that a collapse in New York would cal. A spokesman for the West German Commerzbank told rapidly rock the foundations of every financial institution in EIR, 'Today's decision is evolutionary, not revolutionary." Europe. But leading ECU advocates interviewed in Brusselsand else­ But since when have central bankers done anything that where disagreed. It could have dramatic implications were will work?

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Narco-bankers get brazen Yet recently, the narco-bankers Mexico has a new "emperor" bent on collecting loot for the won a significant battle inside the gov­ ernment. During the Third National foreign banks. Remember Maximilian? Meeting of the Nationalized Banks, held in Guadalajara June 8-10, Bank of Mexico director Miguel Mancera Aguayo arrogantly refused to loosen even slightly the restrictions on credit Agustin F. Legorreta, the new pres­ In a stinging rebuff to Legorreta' s imposed over the past few years. The ident of the Businessmen's Coordi­ scheme, the head of the Mexican outgoing president of the National nating Council (CCE), demanded on Workers Confederation (CTM), Fidel Banking Association, Ernesto Fer­ June 16 that the Mexican banking sys­ Velazquez, stated on June 23: "Na­ nandez Hurtado, uncle of President de tem, nationalized by Jose Lopez Por­ tionalization of the banks is a measure la Madrid, proposed that such loos­ tillo in 1982, be given back into pri­ that the government took to last for­ ening of credit restrictions is needed vate hands, "not all in one blow, but ever, and they are not going to repri­ to achieve at least minimal growth by partially. " vatize the banks in this country . the end of the presidential term. Legorretais a scion of one of Mex­ "Mr. Legorreta has already be­ The President's uncle was slapped ico's oldest oligarchic families, for­ come the new emperor of Mexico. He down in a way that flauntedthe bank­ mer owners of the Banco N acional de wants to rulethe destiny of the country ers' clout. Mancera was adamant that Mexico, and currently owners of sev­ from the CCE, and determine the "the existence of a considerable eral exchange houses of the so-called guidelines of the government. But this amount of international reserves parallel banks, a concession granted is nothing more than his personal am­ should not feed expectations" of the former bankers by President de la bition ...or madness." growth, because this "would trigger Madrid which has enabled them to go Fidel Velazquez, who has headed inflation. " right on speculating. political opposition inside the "sys­ Following a meeting of central He also belongs to the "lnter­ tem" to submission to the Internation­ bank directors at the Bank for Inter­ American Dialogue" grouping linked al Monetary Fund, charged that the national Settlements (BIS), in Basel, to David Rockefeller's Trilateral narco-bankers pull the strings of the Switzerland, Mancera boasted that Commission, which last year floated so-called informal economy, whose "Mexico has been able to pay all the scenarios for legalizing the drug traf­ legalization is urged in the widely cir­ interest on its foreign debt . . . as long fic in Ibero-America. culating book by Peruvian oligarch as we are paying the interest, the cred­ Legorreta's rise to the presidency Hernando de Soto, El Otro Sendero itors should be happy. " of CCE is seen as a show of strength (The Other Path). To purchase this "happiness," in by the Mexican oligarchy, as the jock­ "There is a danger that the under­ the first quarter of 1987 Mexico allo­ eying over who picks the presidential ground economy will overflow the in­ cated 72.9% of itsunalloca ted budget candidate for the rulingPRl in the 1988 stitutional," warned the laborleader , to paying interest on its foreign and elections intensifies. "The crisis that who went on to urge the government domestic debt. Mancera explained: has lasted for 10 years , due to mistak­ to "legislate on the question, above all "There exists a noteworthy situation, en social and economic policies," said because the [underground economy] since Mexico's terms of trade were Legorreta, "will be worse if an error is already the center of economic and approximately half' those of 1982, due is made in the selection of the pre­ financialopera tions in the country, and to the policy of pesodevaluatio ns. "We candidate who will succeed Miguel de controls the most massive speculation are going to have to export twice as la Madrid." ever in Mexico." much to be able to import the same By "error," Legorreta means that Days earlier, Jorge de la Vega this year," he added. someone might be elected to the pres­ Dominguez, chairman of the ruling This brutal looting, which Legor­ idency who could adopt a policy of PRI party, had declared that his party reta calls the "orthodox path" of eco­ economic growth and defense of na­ would never permitthe repri vatization nomics, will require still more "social tional sovereignty, as Peruvian Presi­ of the nationalized banks, since they sacrifices," he says, but in no way dent Alan Garcia has done, despite the were now "the patrimony of all Mex­ should "populist" programs be adopt­ pressures of the creditor banks. icans." ed.

EIR July 3, 1987 Economics II Business Briefs

Science is a "rapidly growing narcotics menace" and inevitable, and in my view possibly rapid, "terrifying" increase in drug use and mar­ decline in the U.S. trade deficit." Conference on optical keting in Israel. The paper quotes a senior ASEAN, he added, would have to di­ officerat National Police Headquarters: "We versify its markets, because "while you may biophysics in Italy are taking on an evil empire. It is a battle we be able to maintain your currentmarket share can never completely win, but one which in the United States, you clearly will not be The Italian industrial giant Montedison we must fight." able to look to the United States to take sponsored a conference June 21-22 in Milan The Post comments: "The 'empire' major increases in your exports." on "Biophysical Methods in Physics and Bi­ stretches from the foothills of the Far East's ReportingShult z's comments, the I nter­ ology ." The focus of the conference was the 'Golden Triangle' to the ports of Western national Herald Tribune's Michael Rich­ frontier area of "nonlinear spectroscopy" and Europe. Its trade routes criss-cross the map ardson writes, "Rapid economic growth has "optical biophysics," which studies the and increasingly pass through, or even end, enabled most governments of ASEAN na­ electromagnetic properties of living tissue in Israel." tions to keep radical Communist or Islamic for medical diagnosis and cure. The Post quotes Commander Uzi Ber­ . political movements at bay." The conference was opened by an ad­ ger, head ofthe National Police Intelligence Richardson reports that Shultz's "blunt dress of Montedison President Mario Unit, which runs Israel's anti-drug cam­ warning . . . has sent ripples of concern Schimberni and the Italian Nobel Prize win­ paign: "We are talking about an organized through the ASEAN countries-Brunei, In­ ner in biology, Renato Dulbecco. The con­ business fromstart to finish.They even send donesia, Malaysia, the Philippines, Singa­ ference was centered around the operational telexes ordering certain amounts from pore, and Thailand. Analysts said the group possibilities of nonlinear spectroscopy,with growers in the Far East, Turkey, or Iran. was worried about the possible social and speakers fr om the United States, including They have a common language. They know political costs of an economic slowdown, from Los Alamamas National Laboratory, each other. You could say it is a bit like the including the spread of Communist or Is­ and Kaisersliitern University in West Ger­ diamond business. Everyone knows whom lamic extremist movements. The ASEAN many, as well as Italy. he is trading with and everything is done on countries were also worried, the analysts Some 70 people from the Montedison trust. There are no contracts, nothing writ­ said, that if the U.S. became preoccupied staff and its scientific Donegani Institute, ten... . We are fightinga monster." with economic difficultiesat home, it might plus many journalists, attended. Israeli smugglers, he says, are active in weaken the U.S. military presence in East The speakers included Dr. Jonathan places like Antwerp and The Hague, and a Asia and the WesternPaci fic,at a time when Tennenbaum of the Fusion Energy Foun­ senior police officeris soon to be dispatched Soviet, Vietnamese, and Chinese power are dation of West Germany, which has been in to Holland to help local police spot them. growing." the forefrontof promotingstudies in the field. "That Israelis play a big part in organ­ "The Medicine of the Future" is the way izing the trade abroad can be seen by the one Italian daily headlined its article on the number who have been arrested overseas on proceedings. narcotics charges," the Post adds, reporting recent cases of Israelis nabbed for involve­ Middle£ast ment in drug-trafficking, in New York , Bra­ zil, Egypt, and Belgium. Peres tour to focus Free Enterprise on regional economy Israelis see 'evil Trade War The holding of an international conference empire' behind drugs on the economic development of the Middle Shultz prepared to East will bethe main topic of Israeli Foreign Israel law-enforcement officials now speak Minister Shimon Peres's European tour, of drug trafficking as a centralized global give Asia to Reds? which beganJune 22 in London. He was to empire, according to a Jerusalem Post news visit Paris June 24 and Bonn on June 26, article-the same framework used to ana­ George Shultz repeated trade war threats then on tq Brussels. lyze the drug trade in EIR's famous book , against ASEAN nations, during a meeting Prior to his departure, Peres said that he Dope, Inc. Israeli police are also admitting with ASEAN foreign ministers June 19. He wanted such a conference to be organized that Israel occupies a important position in stressed that the flexibility and pragmatism jointly and in parallel to an international that empire. of ASEAN would be challenged "perhaps conference on peace in the Middle East, with In a June 19 piece entitled, "A Drugged as never before" over the next few years, as West Germany and Japan playing an "es­ State," the Jerusalem Post reports that there the world economic system "adjusts to the pecially importantrole. "

12 Economics EIR July 3, 1987 Briefly

• JUNK BONDS are still on the Britain's Margaret Thatcher is expected Heute. The Moscow Institute for Immunol­ rise. DesPite 'nsider trading scandals to play a leading role in regional peace ne­ ogy was able to synthesize a part of the pro­ and an incref ing default rate, Stan­ gotiations, according to sources close to tein of the AIDS virus chemically, begins dard & Poor said that junk bonds, Peres. In London, he received a full support the article. "Now we are a bit closer to the high-yield but low credit-rated bonds from Thatcher for his proposal for an Inter­ long-sought-for vaccine," it quotes Prof. sold by companies, are proliferating. national Peace Conferene . He also dis­ Rachim Khaitov from an interview in the At the end of 1986, there was $73 cussed at length his new proposal to have an Russian newspaper Trud. The virus is "un­ billion issued by 470 companies; now economic conference, running in parallel to usually aggressive and cannot be researched there is ove($IOObillion issued by the territorial negotiations, as a "way of with traditional methods. The synthesis, 620 industrial companies. bridging the gap of mutual suspicion." however, enables the use of a less dangerous Israeli sources expect that Thatcher is in protein-part, which is artiticially synthe­ • JAPAN bias proposed creation of a position to play the role of international sized from single amino-acids." an emergency currency"buffer" fund mediator between Israel and Jordan, as well The article quotes Academician Viktor by leading industrial nations, "to cope as between Israel, the Soviet Union, and the Zhdanov again downplaying the danger. The with unpredictable emergencies or United States. Jordan's King Hussein was tirst appearance of AIDS in the U.S.S.R. unjustitiable violations." Toyoo to visit London at the end of June. does not go back to the 1970s, he insists. Gyohten, deputy finance minister, "The United States has lost its credibility "The tirst case of AIDS in our country was says $100bill ion is needed. in the region, and cannot act anymore as an registered in 1986. Naturally, we are not so honest broker. It is also .too much involved threatened by AIDS as the U.S.A. and • MEXICO AND CUBA signed a in bilateral negotiations with the Soviets. WesternEurope .... Neverthe less, the tight bilateral accord for joint develop­ Only London can act," said one source. against AIDS should not be limited to one ment projects'in energy, sugar, steel, country." an other sectors. Fidel Castro himself turnedup for the signing ceremonyin Havana, totally unexpectedly, indi­ AIDS cating the importance Cuba attaches to the accord. Soviets take public Banking • AN E.F. HUTTON broker, 52- health, research measures S&Ls continue to year-old Andy Yurowitz, who is also a first vice p�sident and account ex­ Soviet spokesman continue to deny they face sutTer deposit loss ecutive who has been with the firm much threat from AIDS, even as they launch since 1970, was arrested at the firm's energetic programs to control the disease. Depositors withdrew $14 billion more than offices by agents of the IRS and The Soviet health ministry has launched a they deposited in FSLIC-insured savings and charged with helping to launder program to control AIDS, with the Central loans in the United States during the tirst $450,000 in drug money. Reserch Institute of Epidemiology coordi­ four months of 1987, compared to only $2 nating the effort . A special lab is being set billion for the same period in 1986, said • $30 BIL�ION will be invested up at the institute; 45 diagnostic labs are now Federal Home Loan Bank Board (FHLBB) by Japan in the countries of the As­ in operation; another 60 will be opened by spokesman Doug Green, who added that sociationof Southeast Asian Nations year's end, and about 300 one year from concerns about the solvency of thrifts con­ (ASEAN), Thailand, Indonesia, Sin­ now. tributed heavily to the decline . gapore, Malaysia, the Philippines, Students wishing to study in the Green said Texas S&Ls had net with­ and Brunei. 1.1he investments will be U.S.S.R. are now undergoing blood tests. drawals of $32 million in the tirst quarter earmarked for development projects. Some 50,000people have alreadybeen tested (not the tirstfour months), and that thrifts in in Moscow. All armed forces personnel are Louisana and Arkansas also suffered sizable • 100,000 CONDOMS have been being tested. withdrawals during the quarter. recalled because they failed to meet Nevertheless, TASS quoted Vadim Pok­ . He said April was the eighth consecutive leakage standards. Some were rovksy of the Epidemiology Institute say­ month that more deposits were withdrawn shipped to a ,county health depart­ ing: "In the U.S.S.R., there is no danger of than placed. To make up for the loss, S&Ls ment in North Carolina. The recall AIDS spreading on a mass scale." borrowed $10. 1 billion in April from the was a result of increased federal in­ "A Vaccine Against AIDS," is the head­ FHLB and other sources. That is a 38% in­ spections of �ndoms, which began line in the June 1987 issue of the German­ crease in borrowing compared to April a April 7, accordingto the FDA. language Soviet magazine Sowjetunion year ago.

ElK July 3, 1987 Economics 13 ITillScience &: Technology

The Russian lead in ramo frequencywea pons One reason Gorbachov doesn't mind banning nuclear missilesJro m Europ e, is that he's got something better. Robert Gallagher reports on Russian breakthroughs in RF as an anti-personnel weapon.

Russian negotiators at the Strategic Anns Limitation Talks sons. "Just dead WesternEuropeans and Americans." (SALT II) in the late 1970s proposed a ban on "a new gen­ The fact that high peak power, short-pulsed microwave eration of weapons of mass destruction" that use "pulses of devices can destroy the electronics of aircraft, tanks, or mis­ intense electromagnetic radiation" against equipment and siles, is publicly acknowledged. Lawrence Livennore Na­ personnel, according to reports in aerospace and anns-con­ tional Laboratory is investigating the destructive effects of trol publications, now confinned by sources close to the microwaves on military electronics. The March 1987 issue Pentagon. The Russians were probing for infonnationon the of the lab's Energy and Technolo gy Review writes of "micro­ state of development of U.S. technology in the area. The waves weapons" and "the threat of offensive electromagnetic proposal reportedly was tabled because U.S. negotiators did energy": not then understand what the Russians were talking about. A high-intensity burst of electromagnetic energy Now, almost a decade later, publicly available infonna­ can pose a threat to military systems, such as aircraft tion on Russian development of compact sources of electro­ and satellites. The source of the high-intensity, high­ magnetic radiation at radio frequencies, delivered in pulses frequency pulse can be either a nuclear detonation or of millions to billions of watts in billionths of a second, a microwave-generating weapon. The nuclear deto­ combined with Russian scientists' early pioneering work on nation would broadcast a single, omnidirectional burst the effects of such short pulses of coherent electromagnetic of electromagnetic energy (a monopulse), whereas the radiation on chemical and biological processes, present the microwave weapon would focus and aim a train of horrifying picture that they have developed and are close to microwave-carrier pulses. 'In either case, the threat deploying offensive weapons superior to the nuclearmiss ile, derives from the possibility that damaging amounts of which the Russian-controlled Pugwash Conferences in the the energy would find their way to the inner workings West had proclaimed "the ultimate weapon." The new weap­ of a system's susceptible electronic devices. The pos­ ons will have the capability of disabling or destroying NATO sible effects range from confusion of electronic-system military installations, weapons systems, and troops without function to destruction of sensitive electronic com­ thedestructive eff ects to WesternEuropean industry and real ponents. These adverse effects could result even if estate thatthe Russia ns would like to prevent during a war in only part of the energy should penetrate the outer Europe, but which nuclear weapons would destroy while covering of a system. rendering whole areas radioactive and uninhabitable. The new weapons are one reason why Russian party Of more serious consequence are electromagnetic anti­ secretary Mikhail Gorbachov is agreeable to banning the personnel weapons. The principles upon which they may nuclear missile from Europe. "No nukes, no mess," he rea- function are not well understood in the West. What we

14 Science & Technology EIR July 3, 1987 present here are the results of a preliminary EIR study based gyrotron operating at the same frequ,ncy and pulse length as on known effects of the interaction of coherent radiation their 1975 device. In subsequent years, Russian research with matter. groups at Lebedev and at the Institut¢ for Applied Physics in Gor'kiy, reported routinely produciqg nanosecond pulses of Gigawatt radio frequency devices tens of megawatts of cyclotron resonance maser microwave In 1975, a team of physicists led by M.S. Rabinovich and output power at higher and higher frequencies up to 125 A.A. Rukhadze at the Lebedev Physics Institute in Moscow gigahertz, until much of the work was classified (Figure 1 announced that they had produced from a cyclotron reso­ and Table 1). nance maser, microwave pulses of electromagnetic radiation The highest peak power ever achieved in pulsed gyrotron 35 billionths of a second long (nanoseconds) with a radio operation in the United States is 64$ thousand watts (kilo­ frequency of 10 billion cycles per second (gigahertz) and a watts) at 141 gigahertz. This result, just announced June I pulse peak power of2 million watts (megawatts). The follow­ by the Massachusetts Institute of Tectmology Plasma Fusion ing year, another Russian team led by A.N. Didenko at the Center at the 1987 Institute of Electrical and Electronics Nuclear Physics Institute in Tomsk, reported generation of Engineers (IEEE) Conference on Plasma Science, is only 3-gigahertz, 50-nanosecond microwave pulses with a peak II 15th of the power reported achieved in 1982 by V. Bratman power of 1,000 to 2,000 megawatts from a type of cyclotron of the Institute of Applied Physics at Gor'kiy, from a cyclo­ resonance maser called a "gyrotron," which generates elec­ tron resonance maser operating at the roughly comparable tromagnetic radiation from an electron beam gyrating in a frequency of 125 gigahertz. The MIT device produces pulses helix. The device operated at an efficiency of 30%. In 1978, 3,000 nanoseconds long and is more appropriate for heating the Lebedev group announced generation of pulses of 60 thermonuclear plasmas than for the wtapons applications that megawatts power at 15% efficiency from a plasma-filled the Soviets appear to have oriented .most of their gyrotron program toward. Otherwise, typical U.S. gyrotron peak powers elsewhere in the microwave spectrum are 150 to 300 kilowatts. From the standpoint of short, high peak pqwer pulses, the Soviet FIGURE 1 gyrotron program is "out of sight." Russia leads U.S. in mobile, short-pulse, high peak power gyrotrons Intense multiple-photon actiQn 2000 - • Devices that produce high peak power, tens-of-nanose­ conds (or shorter) pulses of electrom!lgnetic radiation, have 1000 the potential to serve as either anti-personnel weapons, or the • Russia . • basis for new breakthroughs in medici e. The action on living U.S.A.• tissue is not simple heating, but is nonplinear. • Radio frequency pulses have the potential to penetrate •• living tissue. Once inside, an intense, highly coherent pulse of microwaves (for example) can have the effect of higher Ii) 100 frequency coherent infrared, visible, or ultraviolet light (or 'Ii • • • • even coherent x-rays or gamma raY$) through a nonlinear �01 Q) process well established within laser qhemistry, called "mul­ §. • tiple photon excitation." In one example of mUltiple photon lii • - excitation, the photon disassociation of a molecule which � • ordinarily requires absorption of rad ation within a specific � � 10 Q) band or range of frequencies (or w�velengths), is accom­ Q. • plished with coherent radiation of � lower frequency if a • short, high power pulse with sufficie,t coherence is used. It is thought that two or more lower frtjquency photons (units of coherent radiation) act together to j!ffect a transformation requiring high frequency photons.� 2b reproduced from Los Alamos Science. illustrates the mlilltiplephoton action of 10 100 1000 intense coherent radiation. In the h thetical case shown Frequency (gigahertz) there, a pulse of infrared radiation excitesYpo a molecule through over 40 quantum transitions, though: the wavelength of its Russia has developed effi cient. mobile radio frequency devices � that produce high peak power fr om 3 to J 25 Gigahertz. The two radiation is only resonant with two or hree of them. U.S. points on the graph are results of experiments with low­ There are a host of multiple phot n processes, and new effi ciency but apparently compact fr ee electron lasers . ones are being discovered regularly9; In another example,·

EIR July 3, 1987 Science & Technology 15 radiation of two different wavelengths, neither of which is nonlinear multi-photon action it may provide a vehicle for, resonant with the quantum transitions of a molecule, some­ combatting diseases like cancer or AIDS. how act together to excite a molecule through two or more The systematic investigation of nonlinear radio frequency transitions to dissociation, for example. These effects have multiple photon spectroscopy of organic material and living already made industrial laser chemistry considerably more tissue, must now become a national research priority at least feasible. as large as it is in Russia. The requirements in pulse length, Multiple photon processes are well established in the peakpower, and coherenceof the radiation source must also international scientific literature . Los Alamos National Lab­ be examined. Since it is usually easier to break something oratory's Molecular Laser Isotope Separation process in part than fixit, the weaponsapplications of multiple photon radio used nonlinear multi-photon excitation of uranium isotopes frequency biophysics, to destroy life processes, have come with infrared radiation. Recently, a patent was granted to the first. Amoco Corporationfor a multi-photon process to dissociate In the development of the nonlinear multiple photon hydrogen bromide to produce a chemical chain reaction for chemistry and physics of cohetent radiation, it is the Russian production of ethyl bromide from ethylene (see EIR , June biologists, such as Vladilen S. l..etokhov of the Institute of 26, 1987). Given that radio frequency electromagnetic radia­ Spectroscopy at the Russian Academy of Science, who have tion (which ranges from Extremely Low Frequencies to led the way. The Rand Corporation reports that Russian in­ hundreds of gigahertz), can penetrate living tissues, through vestigators began using high peakpower shortpulse gyrotron

TABLE 1 Only the Russians have systematically developed transportable, high peak power, short pulse gyrotrons

Peek Pul.. Electronic Frequency Wavelength Power Length' Efficiency Date Principal (GHz) (mm) (laW) (neec) (%) Reported Investigator ubi Notes

3 100 2,000 50 30 1976 A. Didenko Tomsk 12.5 24 300 SO" 15 1982 N. Zaytsev Gor'kiy 40 7.5 23 20 6 1982 V. Krementsov Lebedev Terek-2 accelerator 40 7.5 40 20 10 1983 P. Strelkov Lebedev Terek-2 70 4.3 6 5-30 4 1982 M. Petelin Gor'kiy CARM with Bragg mirrors

79 3.8 20-30 100" 3 1984 V. Bratman Gor'kiy Neptun-2; a = 400

88 3.4 20-30 100" 1 1984 V. Bratman Gor'kiy Neptun-2; a = 100

107 2.8 20-30 100" 1 1984 V. Bratman Gor'kiy Neptun-2; a = 100 125 2.4 10 20-30 2 1982 V, Bratman Gor'kiy CARM with Bragg mirrors; Neptun-2 accelerator Plasma-filled Devices

2.6 115 10 30" 0.02 1972 Y. Tkach Khar'kov Plasma Cherenkov device 9.1 33 200-300 30" NA 1979 Y. Tkach Krar'kov with vacuum 9.1 33 700 30" 22 1979 Y. Tkach Krar'kov with plasma 10 30 200-300 15-20 2 1975 Y. Tkach Krar'kov Slow-wave device:vacuum 10 30 600 15-20 2.7 1975 Y. Tkach Krar'kov Slow-wave device:plasma 10 30 2 35" 0.4 1975 V. Krementsov Lebedev Terek-2; plasma 10 30 60 30" 15 1978 A. Rukhadze Lebeclev Terek-2; plasma 10 30 25 35" 20 1978 V. Krementsov Lebedev Terek-2; with vacuum 10 30 65-70 35" 20 1978 V, Krementsov Lebeclev Terek-2; with plasma 6.5-20 15-46 90 45" 21 1982 P. Strelkov Lebeclev Terek-2; plasma

1 'Pulse length" refers to output microwave pulse length except when marked with an asterisk; there electron beam pulse length is given, Output pulse can be varied up to about90-95% of electron beam pulse length. 2 "Gor'kiy" refers tothe Radiophysics Institute at Gor'kiy which was transferred in 19n tothe new Institute of Applied Physics there, "Lebedev" refers to the Lebedev Physics Institute in Moscow, "Khar'kov" refers to the Khar'kov Physico-Technical Institute, "Tomsk" refersto the Nuclear Physics Institute in Tomsk, Sources: S. Kassel, "Soviet Development of Gyrotrons: Rand Corp. Report R-33n-ARPA, May 1986; V.L. Granalstein, "High Average Power and High Peak Power Gyrotrons: 'nt. J. Electronics, 1984, vol. 57, no. 6. Legend: GHz = Gigahertz; mm = millimeters; MW = megawatts; nsec = nanoseconds; CARM = cyclotron autoreeonance maser, a type of free electron laser, A Cherenkov device Is also a type of free electron laser,

16 Science & Technology EIR July 3, 1987 • microwave oscillators in the early I 970s for "high resolution ent radiation on biological materiaL spectroscopy and to investigation nonlinear self-focusing of The Russian program to develop high peak power radio intense electromagnetic waves in plasma." High resolution frequency devices has involved scidntists active in its strateg­ spectroscopy is the first stepin mastering the action of coher- ic defense program: Leonid Rudakolvof the Kurchatov Atom­ ic Energy Institute (who speciali�es in intense relativistic electron beams), A.A. Rukhadze and Y.A. Vinogradov of the Lebedev Physics Institute (who specialize in plasma elec­ tronics and x-ray lasers), and man others. FIGURE 2 i A useful review of Russian work on radio frequency The multiple photon effect devices is Rand Corporation Report R-3377, "Soviet Devel­ opment of Gyrotrons, .. by Simon Kassel (May 1986). Soviet, Dissociation limit Dissociation limit European, and American results with gyrotrons are published in English in special issues of the International Journal of

Continu�lm Electronics. Several Russian journalsthat report on the area Soviet Radiophysics and J region are available in English translation: Quantum Electronics, Soviet Radioengineering and Elec­ tronic Physics, and Soviet Radio Electronics and Communi­ r 1 11 cation Systems. How did it happen that the Russians developed high peak i power gyrotrons that at some frequencies operate efficiently at peak powers three orders of magnitude greater than any in r the West? Both the United States and Russia have programs to de­ i velop high average power long-pUlse or continuously oper­ ating gyrotrons for plasma heating in magnetic plasma con­ r finement machines like the Tokamak. In this area of high average power devices, the United States is not as far behind .... the Russians. Russian scientists had developed megawatt i power, long pulse gyrotrons by 1978. One U.S. research lab I • has recently achieved long-pulse gyrotrons producing six­ 1 I tenths of a megawatt. I There is a peculiar asymmetry to the Russian work on r high average power gyrotrons (Table 2). This work has al­ T most entirely been conducted at the Institute of Applied Phys­ I i ics in Gor'kiy (which incorporated the Radiophysics Institute in 1977). It was intense there after A.P. Gaponov and M.1. 1 Petelin built the world's first gyrotron in the mid- 1 96Os, but r slacked off considerably after the mid- 1 970s achievements in high peak power gyrotrons at Tomsk and Lebedev. Then, i Infrared laser photon 1 Infrared laser photon in the 1980s, personnel at Gor'kiy began to publish results on work new to the lab, generation of high peak power pulses Ground state Ground state from gyrotrons and other cyclotron resonance masers. Petelin I (a) 1 (b) and V. Bratman led research teams in virtual competition In multiple-photon excitation a molecule absorbs many infrared with those at Lebedev. The work on high average power photons of the same energy . If the molecule's vibrational energy devices became more and more devoted to raising the fre­ levels were equally spaced as in (a), multiple-photon excitation could be understood as a resonant excitation at each step of the quencies and the harmonics at which gyrotrons would effi­ vibrational ladder. The absorbed photons are represented by ciently produce radiation. arrows whose lengths exactly match the constant energy spacing Since the 196Os, Soviet personnel involved in gyrotron between levels in (a). But, as shown in (b), the vibrational research has increased six-fold (Table 3). However, as the ladderfo r any physical molecule is anharmonic. That is, the number of personnel involved in the program has risen, the spacing between vibrational levels decreases with vibrational energy . Therefore, the energy of the absorbed photons becomes number of scientific papers reporting on results in the open increasingly mismatched with the energy spacing. literature available to the West, has. declined. The Rand re- port concludes: : The significance of the published material on So­ Source: Los Alamos Science, Winter/Spring 1982, p. 13. viet CRM and gyrotron research ,also resides in what

EIR July 3, 1987 Sci�nce & Technology 17 it should be expected to, but does not, say. There are showing a discrepancy between the annual publication many indications that a substantial portion of this re­ frequencies and the number of research personnel ac­ search has been classified over the years. A general counted for in each year. The former shows a peak impression that this is the case is obtained from the in the mid- 1970s followed by a sharp drop, while the publication pattern of the research reports in this area, latter, as noted above, has been rising during the same

TABLE 2 The Russians also lead the U.S. in development of high average power gyrotrons

Peak Pulse Electronic Frequency Wavelength Power Length1 Efficiency Date Principal (GHz) (mm) (kW) (mlcrosec) (%) Reported Investigator Notes

Russian Devlces1

15 20 3 cw 50 1966 A. Gaponov 15 20 380 3 45 1972 A. Gol'denberg 25 12 4.3 cw 18 1966 A. Gaponov

33 9 140 cw 25 1984 V. Flyagin 2nd harmonic

34 8.9 10 cw 40 1974 Sh. Tsimring 2nd harmonic 34 8.9 30 5 43 1974 Sh. Tsimring 2nd harmonic; 400 pulses per sec 34 8.9 120 pulsed 23 1977 Sh. Tsimring 2nd harmonic 45 6.7 1,250 pulsed 35 1978 M. Petelin 54 5.6 150 cw 10 1984 V. Flyagin 3rd harmonic 60 5 10 500 NA 1974 N. Koralev 50 pulses per sec 75 4 156 100 34.6 1984 G. Nusinovich for plasma diagnostics 75 4 212 100 19 1984 G. Nusinovich for plasma diagnostics 83 3.6 200 150,000 NA 1983 V. Alikayev Tokomak T-10 ECRH; operational 94 3.2 300 100 25 1984 G. Nusinovich for plasma diagnostics 100 3 1,100 pulsed 34 1978 M. Petelin 108 2.78 12 cw 31 1973 N. Zaytsev 150 2 22 cw 22 1978 M. Petelin 157 1.91 2.4 cw 9.5 1973 N. Zaytsev 157 1.91 7 pulsed 15 1974 N. Zaytsev 136-250 1.2-2.2 10-20 3.5 10 1974 M. Ofitserov 250 1.2 4.3 cw 18 1975 A. Gaponov

326 0.92 1.5 cw 6 . 2 1973 N. Zaytsev 2nd harmonic 375 0.8 120 80 15 1982 G. Nusinovich for plasma diagnostics 423 0.71 80 80 15 1982 G. Nusinovich for plasma diagnostics 500 0.6 100 80 8.2 1982 G. Nusinovich for plasma diagnostics

Best U.S. Devices

28 10.7 212 cw 45 1980 Varian 28 10.7 250 40,000 45 1980 Varian 35 8.6 150 20,000 31 1980 NRL 35 8.6 340 50 1983 U. Md. 60 5 214 cw 33 1983 Varian 115 2.6 53 1.5 30 1984 NRL 141 2.1 645 3 24 1987 MIT step-tunable from 119 to 148 GHz

1 With the exception of the operational use of an 83 GHz gyrotron'for electron cyclotron resonance heating (ECRH) on the Tokamak T-l0 at the Kurchatov Atomic Energy Institute, all Russian work reported here was carried out at the Radiophysics Institute of the Institute of Applied Physics at Gor'kiy. Sources: See Table 1, plus: R. Temkin, "Recent advances in gyrotrons and FELs," IEEE Microwave Society Meeting, June 1987; A. Fix, et al., "The problems of increase in power, efficiency and frequency of gyrotrons for plasma investigations," Int. J. Electronics, 1 984, vol. 57, no. 6; V. Granatstein et aI., "Measured performance of gyrotron oscillators and amplifiers," Infrared and Millimeter Waves, vol. 5, 1982, Academic Press. Legend: see Table 1, plus: kW = kilowatts; cw = continuous wave output; Varian = Varian Associates; NRL = Naval Research Lab; U. Md. = University of Maryland; MIT = Massachusetts Institute of Technology.

18 Science & Technology EIR July 3, 1987 period. Assuming that individual productivity aver­ aged over the group and over time is constant, the TABLE 3 discrepancy leaves a substantial body of papers miss­ Russia has steadily increased the number of ing from the publications after 1975 which could be its scientists devoted to gyrotron research attributed to classification. pre-1973 <20 The entrance of the Lebedev Institute into the gyrotron 1973-78 40 development program in the mid- 1970s indicated that a ma­ 1982 78 jor national effort was underway. 1986 120 A typical Soviet applied research program is con­ fined to a single institute, while most of the time only Source: S. Kassel, ·Soviet Development of Gyrotrons," Rand Corp. Report R- programs of major national importance are supported 3377-ARPA, May 1986. by a coordinated effort involving several research or­ ganizations. This is clearly the case with the high­ Also, in 1984 Lawrence Livermore National Laboratory power microwave program, where the tie between the stepped up a program whose announced purpose is to de­ Institute of Applied Physics in Gor'kiy and Lebedev velop high peak power, nanosecond pulses of microwaves Physics Institute in Moscow proved to be especially and investigate the effects of microwaves on electronics. fruitful . The program appears to include a third part­ Recently, Livermore investigators generated a burst of mi­ ner, the complex of research institutes in Tomsk. crowaves with a peak power greater than 4,000 megawatts Development of high peak power gyrotrons are the focus for 25 nanoseconds at 7 gigahertz with an efficiency of about of this national effort. Lebedev conducts no work on high 1 %. It is not clear, however, whether the device, known as average power devices outside of providing guidance to the vircator, dependent as it is on a 400,000 megawatt scientists at Gor'kiy and elsewhere. The high peak power electron beam source, can be made transportable. machines have absolutely no application to the area of in­ Granatstein argues that there is an advantage in develop­ terest in gyrotrons in the West, for what is called electron ing high peak power gyroklystron amplifiers since the coher­ cyclotron resonance heating of magnetically confined plas­ ence of the output microwave radiation is expected to be mas; their pulse lengths are too short and their repetition much greater from an amplifierthan from a gyrotron oscil­ rates too low. The technology required for the high peak lator itself. High phase coherence is important for accelerator power devices differs qualitatively from the high average applications as well as radio-biological warfare. The Rus­ power gyrotrons, for example, their electron injection guns. sians plan to stabilize the coherence of their oscillators by The devices are not compatible. filling them with a low density plasma. To take this discus­ The United States didn't start a serious program in high sion further, it is necessary to describe the elementary physics peak power short-pulse gyrotrons until 1984. Perhaps it was of the gyrotron and other cyclotron resonance masers. the density of Soviet reports of generation of pulses carrying tens of megawatts of power in 1982 and 1983 that finally 'Free electron' devices got the United States moving (see Table 1 for a few of these The radio frequency portion of the spectrum of electro­ Soviet results). magnetic radiation ranges from extremely low frequencies At the International Symposium of Gyrotron Develop­ whose wavelength is measured in kilometers through the ment in Lausanne, Switzerland in July 1984 and through microwave portionof the spectrum, named after the category the International Journal of Electronics which published the of devices that produce radiation with gigahertz frequencies conference proceedings, Victor L. Granatstein of the Uni­ and wavelengths ranging from tens of centimeters to less that versity of Maryland called for development of high peak one millimeter. It is the judgment of scientists in both Russia power gyrotron devices, beginning with a gyroklystron am­ and the United States that microwave devices or "tubes," will plifierthat would produce pulses of lO gigahertz microwaves bridge the gap from the range of wavelengths achievable at with a peak power of 300 megawatts and a pulse length of reasonably high power with molecularlasers to those already 100 nanoseconds. To explain the physics problems and fe a­ reached at high power and efficiency with existing micro­ sibility of such a device, Granatstein referred almost exclu­ wave tubes. Figure 3 shows graphically the dramatic fall-off sively to Russian work in the area. Although Granatstein in existing molecular lasers' output power at long wave­ argued for his proposal on the basis that such devices could lengths. At a wavelength of 0. 1 millimeters (100micro ns), power new high energy particle accelerators more efficiently molecular lasers only produce a power of I watt. This sub­ than existing microwave sources, the Air Force Office of millimeter region is where the operating ranges of microwave ScientificResearch and the Navy are providing a good chunk tubes and lasers will overlap. of the funding for the development program, which has Unlike lasers, which are based on the emission of radia­ generated a stream of scientific papers since Granatstein's tion from electrons bound to an atom or molecule, microwave 1984 address. tubes generate radiation from swarm� or beams of "free elec-

EIR July 3, 1987 Science & Technology 19 2) that beams of electrons directed into an electromag­ FIGURE 3 netic field will form into bunches, phased at the Doppler­ The 'catastrophic chasm' in the shifted wavelength of the field; these bunches will emit ra­ electromagnetic spectrum diation of the same wavelength coherently. In the free electron "laser," a beam of relativistic elec­ Long pulse/CW sources 105 trons is directed between a series of permanent magnets whose North-South polarity alternates, thus forming a standing pe­ (Figure 10" riodic magnetic field variation, or wave 4). In the reference frame of the electrons, the high beam velocity transforms this periodic magnetic fieldvariation into an elec­ 103 tromagnetic wave, which bunches the electrons at intervals equal to the Doppler-shifted s'(>acing of the magnets. The magnets oscillate the trajectory of the electron bunches and the electrons emit radiation. (For a more detailed discussion see EIR , Nov. 7 and Dec. 12, 1986, and April 3, 1987.) In a gyrotron, an electron gun or accelerator directs an electron beam into a resonant microwave cavity. A homo­ geneous magnetic field parallel to the forward direction of the beam turns the electrons in circular orbits as they would

CH30H be in a cyclotron. Combined with their forward velocity, this 10 1 �l�� rotation results in a helical motion of the electrons into and � through the resonant cavity, a� shown in Figure S. Russian CH2F2 10-2 scientists believe that in optimal gyrotron operation, the 10 5 0.2 0.1 transverse velocity of the electrons in their circular orbits should equal their forward velocity through the cavity, de­ I I I scribing a helix with a pitch of 45°. 50 100 200 500 1000 2000 In the reference frame of the electrons, their helical mo­ Frequency (GHz) tion inside the resonant cavity, transforms the homogeneous

Gyrotrolls alld fr ee electroll lasers are expected to bridge the magnetic fieldinto an electromagnetic fieldoscilla ting at the gap betweell the frequencies (�r radiatioll produced by lasers frequency of the electron's rotation, that is, the rotating elec­ and those produced by cOIII'emiollal microw{/\'e del'ices trons "see" an oscillating field, not a static one. The oscillat- (eW = contilluOIIS \I'{/\'e).

Source: R.I. Temkin, "High Frequency Gyrotrons,", in Proceedings SPIE, Vol. 666, 1986. FIGURE 4

e - trajectory trons" moving through electromagnetic fields. Perhaps the most commonly known free electron device or microwave tube is the magnetron, the mainstay of Allied radar equipment U/�B('J in World War II and now the power source for everyday , household microwave ovens. We are interested in a more advanced subset of micro­ wave tubes known as cyclotron resonance masers (CRM), which include gyrotrons, the so-called free electron laser, and other devices. (As its inventor, Hans Motz, points out, The undulator or wiggler fo r a free electron laser is composed what is today called the free electron laser is not a laser at all, of magnets of alternating polarity in a linear arrangement. An but simply an advanced microwave tube; he named it the electron beam is directed down the center of the device, which "undulatron," after its action in undulating or oscillating its turns the electrons alternatelyfr (Jm north to south, thus electronbea m's trajectory.) oscillating their trajectory as shown. As the electrons turn, they Cyclotron resonance masers are based on two facts of emit electromagnetic radiation. The dotted line shows the shape of the periodic magnetic field that oscillates the electrons; the physics: solid line shows the electron trajectory produced by the 1) that high speed electrons emit radiation when they are oscillation, as currently understood. turned; the frequency of radiation is proportional to the elec­ trons' radius of curvature but Doppler-shifted with respect to Source: M. Billardon, et aI., "Free Electron Laser Experiment at Orsay: A their forward velocity; and Review," IEEE Journal of Quantum Electronics, Vol. QE-21 , 1985, page 805.

20 Science & Technology EIR July 3, 1987 FIGURE 5 Diagram of a gyrotron oscillator Collector I TheDown Wir Toe?

Call for a quote on

Source: International Journal of Electronics, Vol. 57, No. 6, 1984, page 790.

COOPER qualiBELDEty wireN ing field bunches the electrons at intervals equal to its wave­ IN�DUSTRIES and cable. length, Doppler-shifted by the relativistic factor of the elec­ trons' velocity(the ratio of an electron's kinetic energy to an electron's rest energy, plus I). The electron bunches emit Shielded and unshielded radiation at a frequency of approximately w = (neB/'Ymo), - cable for computers where e and m are the electron charge and mass, B is the - instrumentation and control magnetic field strength, 'Y is the relativistic factor and n is the - electrical and electrical systems harmonic of the emission (n = I the fundamental; n = 2 is the - plenums - fiber optics second harmonic, etc.). In a properly engineered device, the microwave cavity We Go to Great Lengths resonates in a mode compatible with oscillations at this fre­ To Service Your Wire Needs. quency and guides the emission to the output window. In high frequency gyrotrons, the traditional closed resonant mi­ ServiceIs WhatWe're About A single source crowave cavity is replaced with mirrors between which the electronics distributor stocking more than microwaveradiation oscillates; these are called quasi-optical prime lines of components hardware, gyrotrons. 100 test equipment, and control devices for in­ The basic components of a gyrotron are thus the electron source, the resonant cavity and output waveguide, the mag­ dustrial and commercial application. nets, and the power supply for the electron source and mag­ Write or Call Today for a nets. The resonant cavity is itself tiny, with dimensions mea­ sured in centimeters. Transportable high peak power gyro­ Free 500 Page Catalogue! trons require compact, pulsed power sources and compact, intense relativistic electron beams (lREB), technologies where the Russians have a considerable lead. For example, the Neptun-2 accelerator used in gyrotron research and devel­ opment at Gor'kiy, is reportedly a more compact version of the Neptun accelerator designed by Leonid Rudakov at the Kurchatov Atomic Energy Institute. The original Neptun occupied a few cubic meters of volume. A high peak power INDUSTRIAL ELECTRONICS gyrotron with a more compact Neptun-2, a pulsed power source and solenoid magnets , could fitinsi de a medium-sized 100 N. Main truck. Dept. E Soviet special forces operating out of such trucks in West­ Evansville, IN 4n11 ernEurope could disable NATO aircraft, missiles, and tanks in the event of war before they could get off the ground, be U.S. Wats 800-457-3520 fired, or leave their command posts. More important, radio­ Ind. Wats 800-742-3670 biological warfare special forces could wipe out entire officer Local 812-425-7201 corps, divisions, battalions, etc . Fax 812-465-4069 To be continued.

ElK July 3, 1987 Science & Technology 21 TIillFeature

In defense Secof retary 'Ireasury Alexander Hamilton by Lyndon H. LaRouche, Jr.

Today, Alexander Hamilton, our republic's firstTreasury Secretary and Inspector General of our anned forces, seems to be a giant, and our contemporary political leaders Lilliputians by comparison. When Hamilton entered the post of Treasury Secretary, our nation's indebt­ edness and economy were in a terrible condition, similar in many ways to the economic disaster we are suffering today. Under Hamilton's program of recovery, our national credit was restored, our banking system became the soundest in the world, and prosperous growth was unleashed throughout most of our nation. These policies of credit, banking, and economy, which Hamilton outlined in his famous reports to the Congress, became admired and envied worldwide by the name of the "American System of political-economy." Under the administrations of Thomas Jefferson and James Madison, Treasury Secretary Gallatin scrapped the American System, and introduced Adam Smith's free-trade dogmas instead. The result of this chan,e was a ruinous one. Under Presidents James Monroe and John Quincy Adams, Adam Smith's ruinous ideas were scrapped; Hamilton's American System was restored. National credit, bank­ ing, and economy were saved. Presidents Jackson and van Buren destroyed the American System, and rein­ troduced the ruinous policies of Adam Smith. The result of Jackson's policies was the terrible Panic of 1837. I have lived personally through a similar experience in my own lifetime. The Coolidge and Hoover use of Adam Smith's policies, during the 1920s, plunged the world into a Great Depression. Most Americans sufferedgreatly through 1938, until President Franklin Roosevelt began his firststeps toward preparing us for the war with Hitler he already knew then was inevitable. Many of you are told today, that it was military spending that pulled the United States out of the depression. I was there, and saw, as did many of my generation, exactly how the economic recovery of 1940-42 was organized. It was not the war which caused the economic recovery. President Roosevelt created the economic recovery to bring the production of our fannsand industries up to levels needed to

22 Feature EIR July 3, 1987 A parade in New York City celebrates the ratification of the U.S. Constitution in July 1788, with a parade featuring the ship Hamilton, named fo r the chief author of The Federalist papers. Under Hamilton's "American System" of economics, the United States entered an era of prosperous growth .

support our mobilization for war. It was not the war which upward, as if they were about to faint. The response is: "Let caused the economic recovery; it was the economic recovery us hope that the crash can be postpqned until after the 1988 which made it possible for us and our allies to win the war. elections. "

We could have had an even better economic recovery, if For technical reasons, the only 0 e who could predict the we had not been forced to do this under the costly, inflation­ exact timing of a crash is some ppwerful government or ary conditions of war. Despite the inflationary costs of fu ll­ banking interest, which knew the day on which it intended scale war, the U.S. recovery of 1940-43 was one of the "to pull the plug." Unless one has that sort of information, it greatest successes in the economic history of the world. All is impossible to predict mathematically the exact timing of a of the prosperity we enjoyed during the 20 years after the financial crash . However, the international financial bubble war, was a result of the high levels of farming and industrial is now stretched to the point it is ready to burst. Under these potential we built up by 1943. conditions, any significant disturbance could set off a chain­ During the past 20 years, under five successive Presi­ reaction collapse in markets. Anyone who imagines that it dents, our economy has been sliding downhill. Today, for could be postponed to beyond President Reagan's January most of our families, local communities, farms, and indus­ 1989 farewell address to the nation, without the kinds of tries, things are as bad or worse than during the middle of the sweeping changes in emergency policies I would propose, is 1930s. Leading world bankers are warning us that we are dreaming wishful dreams. near the edge of the biggest financial crash in history . Therefore, any American who is looking a few months The time has come , to junk Adam Smith's ruinous policy or more ahead, ought to be very concerned with knowing my of free trade, and to return our country to what Secretary economics philosophy and plans for emergency action. Hamilton was first to name "the American System of politi­ My policies are documented at considerable length in a cal-economy." That is what I intend to do as your next elected number of published texts, including a special report I pre­ President of the United States. sented to the Reagan administration in August 1982, and a Today, more and more political analysts are warning that follow-up special report submitted a year later. Given the the AIDS issue will make my presidential candidacy a very reading habits of most of my fe llow-citizens today, it is strong proposition. When some among these analysts are indispensable that I summarize this topic in a series of shorter asked what might be the added effect of a financial crash articles. In this article, I concentrate on what might be the becoming an issue during the coming months, their eyes roll first question which comes to the mind of the concerned

EIR July 3, 1987 Feature 23 citizen: What is the kernel of my philosophy of economics? administration has been reporting "economic growth." By profession, I am primarily an economist, and, by Hoover promised a "chicken in every pot," but ignored scientific standards, a very successful one. All of my work the question: How many Americans would still be able to in this fieldlies within the policy-framework of the American afford a pot? System, as defined by such leading economists as Benjamin What is it that we should measure? I summarize the most Franklin, Hamilton, the two Careys, and Friedrich List. fundamental features of the problem. Within that context, I have added an important discovery. Modem anthropologists insist that the earliest form of My discovery, known around the world today as the La­ society was what they term "a hunting-and-gathering soci­ Rouche-Riemann method, does not overturn anything pro­ ety ," in which mankind's existence depends upon hunting posedby Hamilton's famous 1791 "Report on the Subject of fishand animals or gathering wild fruits and vegetables. Let Manufactures," but only strengthens Hamilton's policies us assume, for the sake of argument, that these anthropolo­ rather significantly. gists were correct. Look at such a society through the eyes of Within Hamilton's "Report on the Subject of Manufac­ the economist. tures,"the following passage appears prominently: An average of approximately 10 square kilometers of the Earth's land-area would be needed to sustain the nutrition of To cherish and stimulate the activity of the human an average individual in such a society. This would mean mind, by multiplying the objects of enterprise, is not that the human population, worJdwide, could not have ex­ among the least considerable of the expedients, by ceeded about 10 million individ�als. It would be a very mi­ which the wealth of a nation may be promoted. serable existence. The average life-expectancy would be well The connection between inventions of the mind, and the below 20 years of age, and the cultural level a brutish one. increase of the physical productive powers of labor, is the Over a period longer than th� past 2,000 years, we have kernel of the American System. What I have accomplished, fairly good knowledge of the population-densities and tech­ is to show that it is possible to predict mathematically the nologies used in major portions of the world. Our knowledge rates of increased physical-economic growth which will re­ becomes more precise since the great census taken by Char­ sult from an effective use of a specific sort of mental pro­ lemagne, especially in Western Europe , where Church sta­ duction of a new technology. On this basis, I have been tistics are most helpful, in enabling us to estimate population­ able to provide a new, stronger scientific proof forthe rea­ densities by area with considerable precision. Since the 15th sons that Hamilton's American System promotes depression­ century, the quality of our data is highly reliable for estimat­ freeeconomic growth, and why Adam Smith's doctrine must ing the rates of change in population-densities. always lead a nation to new disasters. For our purposes here , it is not necessary for me to go Most of the argument in the following pages belongs into detail on the kinds of methods we use to estimate popu­ within the scope of what most readers will probably call lations and to cross-check those estimates. The point I am "intelligent common sense." Part is somewhat technical, making is a fairly obvious one: a very crucial difference although I am able to describe this in terms which require between the behavior of mankind and beasts, as seen through no mathematics education beyond the high-school level. I the eyes of the economist. make no apologies for including this technical material. Today , there are more than 5 billion persons. Even with Contrary to the apparent beliefs of President Ronald Reagan, existing technologies, as the case of Belgium illustrates the economics is a science, which only bunglers would approach general point, we could sustain three or more times the pres­ with nothing more than a few handy slogans. ent levels of population, at a standard of living comparable By the end of this article, the reader will recognize the to that in Western Europe and North America during the practical importance of the technical matters I introduce in happier days of the early 1970s. In other words, "since the the following section. hunting-and-gathering society," we have increased man­ kind's potential population by about a thousand times. We The core of my argument have also increased potential life-expectancies by about four The fault of most modem economists, and our govern­ times. If we measure all forms of income in kilocalories ment officialsreporting on the economy, is that these fellows consumed, we have raised the potential standard of living by simply do not know what it is they ought to be measuring. much more than a thousand times. Certain things have been growing in our economy; some In mathematics, it is conventional to speak of an increase things have not been growing, such as farming, industry, by a factor of 10, as an increase of one order of magnitude. stability of banks, and the average standard ofliving offamily Through technological progress, mankind has increased its households. That which pleases the Reagan administration, potential by about three orders of magnitude. The smartest it measures; that which does not please the administration, it species of beast could not increase its potential population­ either doesnot measure at all, or measures in an incompetent density by even a significant fraction of one order of magni­ way. As a result, while the economy has been collapsing, the tude.

24 Feature EIR July 3, 1987 From the standpoint of the economist, the thing about redefined the problem. My next difficulty was to select a human existence which sets us above the beasts, is that we choice of mathematics suited for solving problems of the type are able to effect successive advances in what we call scien­ I had defined. I found the solution in the work of a leading tific and technological knowledge, and are able to transmit 19th-century physicist, Prof. Bernhard Riemann. For that that knowledge to one another in such a way as to raise the reason, my discovery is known as the LaRouche-Riemann standard ofliving of the average person , while also increasing method. the potential size of the human population sustained at this The first crucial problem we encounter in seeking to con­ improved level. No beast's mind can generate or transmit struct the desired kind of mathematical function, is the prob­ scientific and technological progress. lem of definingwhat we should mean by human "creativity" The most important fact in economic history, is society's in mathematical language. "Creation" is a conception which power to increase productivity through generating technolog­ can not berepresented in any system of deductive mathemat­ ical progress, and assimilating these technological advances ics. My adolescent wrestling with the famous Critiques of into daily practice of the society generally. Immanuel Kant, enabled me to understand this problem, Let us set up a very crude sort of equation, which express­ whereLeontief, von Neumann, and Wiener, among others, es what we have just said: had failed to do so. Define the word "creation." Try it in theology. Try it in y=F(x) cosmogony. What do you mean by that word? Most of you mean, that in one moment, something does not exist, but in in which y signifies a rate of increase in productivity, and x the next moment it does. The transition from the first to signifies a rate of increase of technological progress. F(x) second moment, you will name "creation." What happens in signifies a function expressed in terms of rate of increase of between those two moments, which causes the new thing to technological progress. Is it possible to construct a mathe­ be created? No matter how long you :attack that question with matical function of the required form? The search for such a the methods of formal, Aristotelian logic, or modem deduc­ mathematical-economics function has been ongoing since the tive mathematics, you will end up no better than at the begin­ founding of modem economic science, by Gottfried Leibniz, ning. To the person who relies only upon deductive logic, it during his work over the period 1672-1716. would seem that "creation" is a word we use to identify What Leibniz did, in this connection, was to establish something the human mind could never grasp. economic science as a branch of physical science. This eco­ That was the argument of Immanuel Kant, throughout his nomic science was known during the 18th century, into the Critiques. Kant insisted throughout' these Critiques. but es­ 19th, as the science of "physical economy." It was sometimes peciallyin his last, his Critique of Judgment. that the mental also identifiedby other terms, including "science of technol­ processes by which human beings create a valid scientific ogy," and, in French, "polytechnique ." This branch of eco­ discovery, are not intelligible. This was the same standpoint nomics, "physical economy," is the area within which the which von Neumann took, not only in his doctrines on math­ greatest part of my own professional work lies. ematical economics, but his mathematical theory generally. A mathematical-economics fu nction of this sort is possi­ This was Norbert Wiener's standpoint in "information the­ ble. My principal contribution to economic science, since my ory." initial such discoveries during 1952, has been to show how The solution to this problem of mathematics was first such a function must be defined. shown to exist by a person who was probably the greatest This mathematical fu nction can not be solved through use genius of the past 600 years, Cardinal Nicolaus of Cusa. In of the methods upon which present-day econometric fore­ addition to being the Papacy's outstanding thinker of the casting is based. Those methods are based on the combined Italian Renaissance period, Cusa was the founder of the influenceof several influential figures of the 1930s and 1940s: methods of modem physical science, and the most direct Harvard's Professor Wassily Leontief, the principal designer influence on the work of Leonardo da Vinci and Johannes of the present U. S. national income-accounting system, Prof. Kepler, among others , as well as a leading indirect influence John von Neumann, and Prof. Norbert Wiener's doctrine of on Huyghens and Leibniz, among others. Cusa showed how "information theory." These defective methods are known "creation" could be represented as an intelligible idea, capa­ among specialists as methods of solution of "simultaneous ble of mathematical representation. linear inequalities. " No system of linear inequalities can rep­ Cusa was the founder of one of the two leading branches resent the relationship between rates of advance in technol­ of all modem physical science. Galileo, Descartes, and New­ ogy and rates of increase of physical productivity. ton are typical of methods of formal deduction, based upon What I did, startingby attacking this fallacy in the argu­ Euclid's Elements. Cusa, Leonardo, Kepler, Leibniz, Gauss, ments of Leontief, von Neumann, and Wiener, was to return and Riemann, are among the leading names in an opposing to the starting-point of my adolescent studies of Leibniz's faction in science, whose method is based on anon-Euclidean work. On that basis, over the course of several years work, I geometry. By "non-Euclidean geometry," I mean one based

EIR July 3, 1987 Feature 25 entirely on construction, with no axioms, from which use of Gaussian form of the complex domain. It is the Riemannian deductive reasoning is prohibited. form of this Gaussian complex domain, which permits us to Without going into the detailed history of this scientific represent those kinds of processes which are properly called issue, it is enough to say the following. Cusa solved the "creative. " problem leftunsolved by Archimedes, the so-called problem Although this Riemannian approach implicitly permits us of showing why the attempt at a simple squaring of the circle to map brain functions in a broad way, the LaRouche-Rie­ is based upon a mistaken assumption. Cusa discovered a mann method considers only one aspect of these brain func­ geometrical and physical principle, which he defined as the tions, the problem of representing the generation of higher­ "Maximum Mininum" principle, which modem mathemati­ order technologies. Admittedly, at first glance, what we are cians know in the guise of "the isoperimetric theorem" of able to accomplish in this way is "mind-boggling," but after geometric topology. The greatest advance beyond Cusa' s becoming used to the ideas involved, it all seems quite ob­ original formulation, was contributed by Karl Gauss. A num­ vious. ber of Gauss's contemporaries and collaborators worked on Beginning with a set of three scientific papers which refiningGa uss's discovery. The results of this were summed Riemann composed, during 1853, as the dissertations quali­ up in the work of Riemann. fying him for inauguration as professor at Gauss's G6ttingen Today, we call the variety of mathematical physics based university, the central feature of Riemann's work as a whole on Gauss's approach to constructive geometry "the Gauss­ is his concentration on the hypothesis, that any physical pro­ Riemann complex domain." Riemannian physics is based, cess in the universe was mathematically representable in the centrally, on the mathematical representation of processes Gaussian complex domain. Riemann supplied only partial which evolve to higher states. This is the only branch of proofs for this, but he made substantial advances, and pointed mathematical physics in which it is possible to account for the way in the direction in whiCh more general proofs might what occurs during that interval, constituting the act of cre­ be developed. What he did accomplish, is more than suffi­ ation, between the two moments of successive not-being and cient for the needs of the economist. being. Referring to the function, y = F(x), our first problem is This is not the place to elaborate this significance of that of definingthe way in which both y, a rate of increase of "Riemann Surface functions." Our purpose here , is simply productivity , and x, a rate of increase of technological prog­ to identify the nature of the problem of representation, and ress, must be measured. The problem of defining y, is the the location in which the required form of mathematical so­ simpler part of the task. Definin�x is the major challenge. It lution is to be found. The following points must, however, is that major challenge we are addressing at this point. be made. If we can represent efficiently any physical process which If you imagine that the only self-evident form of action represents a new technology, part of the problem of defining in the universe were circular action, as Cusa showed, then x is already solved. If we can also define which kinds of all of the true theorems and constructions in Euclidean ge­ physical processes are more advanced, and show that in the ometry can be developed, in a non-deductive, non-Euclidean same way we represent particular physical processes, we can way, by construction. This is done, first, by imagining the measure which process is the more advanced technology. We case in which circular action is acting upon circular action, can also measure how much more advanced it is. How do we as if the one is at right angles to another, and that this is compare two physical processes, and say that one is measur­ occurring at every interval of each circular action. This is ably superior economically to another? called doubly-connected circular action. Euclidean space, Go back to the work of Leibniz, where this problem was elaborated by rigorous methods of non-deductive (non-Eu­ firstdefined . clidean) construction, is essentially triply-connected. Leibniz's major work in ecopomic science began in Paris With Gauss, we go a step further. We know that simply during the same years, 1672-76, he solved Kepler's plan for circular action is not an adequate representation of the real creating a differential calculus. His work in Paris, together universe. Imagine a special form of circular action, in which with that of Christian Huyghens, was done under the spon­ the radius of rotation is lengthening as the action occurs: sorship of the French minister Jean-Baptiste Colbert. The spiral action. Now, imagine that the center of rotation is mission in which Huyghens and Liebniz were involved then, moving forward , in the direction of time, while this is occur­ was to design what became known as "the industrial revolu­ ring. Our spiral action now lies on the exterior surface of a tion." Leibniz defined this task as study of the principles of cone. This is called a self-similar spiral, for obvious reasons. the use of heat-powered machinery, by means of which "one Now, in place of circular forms of multiply-connected action, man can do the work of a hundred." substitute multiply-connected self-similar-spiral action. This involved the principles of design of heat-powered State what you have done in the language of trigonome­ machinery. Huyghens worked, for example, upon what be­ try , using elliptic, hyperbolic, and hyperspherical trigono­ came known later as the piston-powered internalcombustion metric functions to accomplish this result. The result is the engine. Leibniz's work led him to collaborate with Denis

26 Feature EIR July 3, 1987 Papin in the creation of what became the first steam engine tion of machine design, which enables us to predict what successfully used to power a boat (using external combus­ kinds of changes in internal organization of the machine tion). represent a more effective way of converting heat-power The general problem at the center of Leibniz's work in into increased productivity of the machine's operative. This economics, was to define the way in which increasing the principle permits us to measure the superior organization of amount of coal-burningpower supplied to a machine, would one machine over another. This measurement is the measure increase the productive power of the operator of the machine. of quantity called "technology. " It is generally true, that increasing the power used per oper­ To keep the discussion as short as possible, let us define ative will make possible increases of the productivity of the rotary motion in terms of what Leibniz defined as physical operative. It is also true , that by raising the operating tem- least action. Most of the preliminary work on definingprin­ ciples of technology was undertaken by Lazare Carnot and Gaspard Monge's circles at France's Ecole Poly technique, with the fundamental work established during the years 1794- We re Alexander Hamilton alive 1815, before the Ecole began to decay under the post- 1815 today, he would smile as he leadership of LaPlace and Cauchy. Most of the basic princi­ ples of technology of design of heat-powered mechanical accused me oj "stealing his devices were solved by the Ecole during that period or soon prog ram. " Then, he would ask, after. These collaborators of Carnot and Monge went further, "Show me how you worked out the to begin to define some of the problems of electrodynamics methodsJor measuring the in particular, as well as thermodynamics in general. The work connection between rates qf of Sadi Camot, Fourier, and Legendre is the most important. However, as French scientists were repressed under the re­ technological progress and rates oj gime of Cauchy, the world's leadership in scientificprogress increase qfproductive powers qf began to shift into Prussia as early as the 1820s, with one labor. " We wouldn't talk about center at Berlin, under the leadership of Alexander von Hum­ boldt, and another around Gauss at Gottingen. During the much else, since on everything else 1820s, Gauss and his collaborator Weber, undertook a com­ we would agree automatically. prehensive reworking of electrodyl1amics. During the 1850s, this work on electrodynamics accelerated, centered in the collaboration between Riemann and Weber. As briefly as possible, now. There is a grave flaw of perature of processes, we can not only increase the produc­ inadequacy in Fourier Analysis. The combined work of Gauss, tivity of the operative, but can perform kinds of work which Weber, Dirichlet, Riemann, Weierstrass, and Cantor, was are impossible to accomplish economically at lower temper­ focused upon this problem of Fourier Analysis to a large atures. degree. Gauss's complex domain provided a unique basis for However, Leibniz's work took him beyond these prob­ correcting this flaw. A more advanced view of hydrodynam­ lems. I shall describe the deeper problem in the simplest ics was integrated with electrodynamics. This view permits possible terms of illustration . Imagine that two machines use us to do for the technology of electrodynamics what the Ecole up the same amount of heat per hour, and that both are used Polytechnique did for the technology of mechanics and sim­ to do the same kind of work, but, that the same operative, pler thermodynamics. using one machine , will produce more than with the other The key clue is to base a notion of physical least action machine. Assuming that both machines are well built, ac­ on multiply-connected self-similar-spiral action, rather than cording to their design, how should we define the difference upon multiply-connected circular action. This approach per­ between these two machines? mits us, today, to subsume modem plasma physics and co­ Leibniz called this difference "technology." By "tech­ herent electromagnetic pulses under Leibniz' s notion of tech­ nology," we mean, broadly speaking, the quality of organi­ nology. In the conclusion of this article, I shall indicate the zation of the machine's design. One ofthe simplest examples major practical importance of that fact for organizing a long­ of this notion of "organization," is the use of a sharper and term U.S. economic recovery today. harder point, or cutting-edge on a tool. The same work can All other things being equal, there are three conditions be done with less effort, and usually better. We develop a which must be met to generate a generalized advance in more general notion of organization, by defining all machine productivity of operatives: functions in terms of rotary motion. 1. The amount of usable energy supplied, both per capita What we desire to know, is some principle of organiza- and per square kilometer, must increase.

EIR July 3, 1987 Feature 27 Presidents Andrew Jackson and Martin van Buren destroyed Hamilton's "American System" economics, and reintroduced the ruinous policies of Adam Smith. The result of Jackson's policies was the Panic of 1837, illustrated (left) in a contemporary cartoon. The drawing shows "Old Hickory" beating the bankrupt nation. The drawing on the right shows the Corliss steam engine at the 1876 centennial exposition. With the reintroduction of American System methods aft er the Civil War, such inventions spurred unprecedented industrial growth.

2. What is sometimes tenned the "effective energy-flux measure output in tenns of "market-baskets" of consumers' density" of the energy supplied and applied, must increase. and producers' requirements. The number and qualities of 3. The level of technology in internal organization of the products in market-baskets changes with technological prog­ process of production, must be advanced. ress. Labor of a higher quality of productivity requires a These three conditions are interdependent. If these con­ higher standard of living to maintain its household at that ditions are not met, productivity of production will tend to level of cultural potential . So, we must measure how many stagnate, and ultimately will collapse. individual market-baskets' worth of output are produced by One other point must be added now, before turningto the the labor of a single operative. We must take into account problem of proper measurement of productivity itself. The both consumers' market-basket requirements, and produc­ fact that we can represent technological progress mathemat­ ers' requirements measured in the same way. ically, means that we can represent this in tenns ofthe kinds The problem of diminishing returnson natural resources of mental processes which generate these discoveries. This comes into play. Here, energy comes directly into play. The does not explain everything about the human mind, but it more energy per capita, and the greater the effective energy­ describes what mental processes must do to discover a sci­ flux density of that energy, the �oorer the quality of natural entificadvance beyond existing levels of technology. To this resources we can use without su�fe ring an increase in cost of degree, creativity is rendered intelligible. production. As we are able to use poorer natural resources To choose what to measure as increase of productivity, economically, the limits of nat¥ral resources are widened; takes us back to the illustration given at the beginning of this whereas, if we do not advance technologically, the limits of section. What detennines whether a change is for the better natural resources close in upon us. of society, or not? The answer should be obvious. Most If we are broadening the limits of natural resources, the simply: whatever increases the potential population-density result is that an average square kilometer of land will sustain of society, whatever increases the number of persons who an increasing number of people. If our technological progress can be sustained, in an improved standard of living and cul­ is stagnant, the limits of natural resources are closing in upon ture, per square-kilometer of land-area. us. If we slip backward technologically, and have less energy We consider the problem of making such measurements used in production, per capita and per square kilometer, the at several successive levels of sophistication. society is on the road to collapse. Since our definition of increased productivity must cor­ For these reasons, it is not atlequate to measure produc­ respond to increase of potential population-density, we should tivity in tenns of present-day market-baskets. What we must not measure output in either prices or particular products. We measure is a rate of increase of productivity , a rate which

28 Feature EIR July 3, 1987 must be high enough so that we are broadening the limits of more wealth than is loaned to get this production into motion. natural resources, rather than allowing them to close in upon Their wages, and the business income of farms and indus­ us. tries, will put added money into circulation, increase the tax­ revenuesof the federill government(without raising tax-rat es). Political-economy If this money is loaned at low borrowing-costs, at prime A modem economy has two interdependent aspects. The rates less than 2%, and if federal tax schedules provide gen­ first aspect, which we have stressed so far, is the physical erous investment tax-credits to those who invest in creating economy: the production and physical distribution of goods. high-technology work-places in production, we shall do quite This is the aspect of the economic process which falls under well without having to borrow money from anyone but our­ the heading of physical science, as we have reviewed what is selves. involved in that. The second part is the political processes The problem today , and over the past 20 years, has been, governingan economy. These political processes include the that the political side of the economy has been mismanaged, issuance of money, the organization of credit and banking, very badly. The percentage of the total labor force employed taxation, and tariffs. in producing physical wealth has been collapsing, while the Since employment, production, and physical distribu­ combined total of unemployment, and employment in admin­ tion, on the real, or physical side of the economic process, istration and superfluous services has piled up. Tremendous are organized through buying and selling at money-prices, fortunes have been made in pure financial speculation, with and are fostered or suppressed by the way credit and banking no increase of physical production to show for it. We have are organized, and are affected by taxation, the two sides, been going deeper and deeper into debt, to produce less and the physical and political, interact in this way. This interac­ less per capita. It's a terrible way to run a railroad. tion is what we ought to understand one another to mean The only major risks in the government's creating very when we use the term "political-economy." large issues of money for lending are that the lending and tax Our Founding Fathers' knowledge of physical economy policies might move money in the wrong direction-into was obtained, from about 1766, in the relatively greater de­ more financial speculation, and more and more employment gree from French industry and science, and their theoretical in administration and marginal qualities of services. The trick knowledge from Leibniz or Leibniz's indirect influence. The is to lessen the tax burden on investments in high-technology, emphasis on "productive powers of labor" in Hamilton's goods-producing work-places, and to steer most ofthe newly "Report on the Subject of Manufactures" is strictly Leibni­ created credit into those kinds of investments. zian. Their notions of the political side of the economic My immediate goal is to add 5 million new industrial process are best traced to the pre-Andros period of the Mas­ work-places, emphasizing improved technologies, during the sachusetts Bay Colony, and the 18th-century influence of first two to three years of my administration, and steer the Cotton Mather. Benjamin Franklin's 1729 "A Modest In­ nation in the direction of employing about half of the total quiry into the Nature and Necessity of Paper Money," is an national labor force into occupations as farmers, industrial affirmation of Cotton Mather's policy, a policy based on the operatives, and operatives employed in constructing and successful use of paper money issue and "state banking" in maintaining utilities and public works. the pre-Andros Massachusetts Bay Colony. There is no magic in it. It is simply a matter of government Our Founding Fathers had none of the illusions about reaching a consensus with entrepreneurial farmers and indus­ "the magic of money" popular around Washington-and trialists, and government's delivering on promises to pro­ elsewhere-today . They knew that the source of wealth was mote technological progress in and expansion of production the production of physical goods and of public improvements and employment in manufacturing industries and similarforms such as roads, canals, bridges, ports, and similar works. of employment. Set the investment tax-incentives high, keep Paper money, credit, banking, and so forth, were necessary low-cost credit flowingthrough the private banks, and ensure arrangements for efficientcommer ce, but nothing more than that there is a sufficientrate of scientificprogress being gen­ that. erated. Today , when I outline what I shall do as President, some­ This program will not be inflationary. It will be deflation­ one always pops up to ask, "Where is the money coming ary. The higher the percentile of the labor force employed in from?" Very simply, under our Constitution, the U.S. Con­ producing wealth, and the lower the percentile employed in gress shall enact a law, authorizing the issuance of between administration and marginal services, the lower the cost of $500billion and $1 trillion of U.S. Treasury currency-notes. every article produced-the fewer the number of overhead This money will not be spent by the federal government. It salariestacked onto the price of what the farmeror industrial will be lent, through banking-system channels, to farmers, operative produces. Keep financial speculation down, too. manufacturers, public utilities, and capital accounts of fed­ That will be indispensable under conditions of financial cri­ eral, state, and local agencies responsible for building public sis; it is a good practice generally, since every dollar of works . We shall put farms, industries, and people back to income from financial speculation becomes an added dollar work producing new physical wealth. They will produce of overhead tacked onto prices of commodities.

EIR July 3, 1987 Feature 29 Let us suppose that I were President for two terms. In that ernmentmust ensure that the machine-toolsector is being fed case, before I left office, the percentage of our national labor with large doses of the kinds of technologicalprogress which force employed as manufacturing operatives would have our industries will gobble up under such circumstances. doubled, while the number of working farmers would remain The President, with cooperation of the Congress, has about the percentage existing today. This would nearly halve three major economic weapons for fostering high rates of the real cost of every manufactured item produced, simply technological progress: I) U.S. military expenditures; 2) non­ through large cuts in the overhead burden tacked onto the military research and development programs wholly or par­ price of things produced. tially backed by government; and 3) public works, both gov­ Balance the budget? Easily! The trick of balancing the ernmental and by public utilities. If the federal government budget, is, essentially, keep tax-rates low and tax-revenues plans its budgets in these three areas properly, the govern­ high. How? Simply: Increase national income. Low tax-rates ment can shape the net impact of this expenditure to foster mean, among other things, a more rapid investment in new high rates of technological progress spilling over into private work-places. By expanding production, the government gains investment. more from expansion of the revenue base, than it loses by not The practical problem on which I have been working for raising tax-rates. Government must strike a reasonable bal­ about a decade, most emphatically, is to devise the best way ance between the two, subject to imperative national needs. in which either I, or some other President could do this. The political side of the economy is the easiest part of the It happens that all technological progress likely to occur problem. We need nothing more than a governmentwit h the on Earth during the coming 50 years will be concentrated in knowledge, political will, and political support to do what four areas: must be done. Thereal mental challenges come in the area of 1. Organized plasma processes at very high energy-flux physical economy. densities. Controlled thermonuelear fusion as a primary en­ ergy source for man on Earth, and in space-exploration, is a My 'science-driver' program leading part of this. However, with these "temperatures," My first concern, as President, apart from preventing the and with associated techniques for handling hot plasmas, financial system from blowing wide open, will be to get rates every branch of metallurgy will be revolutionized, breaking of productive employment up. Those among you old enough the limits of every presently imaginable limit to natural re­ to remember 1940-43 , will understand this the quickest. We sources on Earth. must begin with the plant facilities and work-places which 2. Controlled pulses of coherent electromagnetic radia­ we can reopen for production. A few years down the line , tion, and compound pulses of this sort. This is already emerg­ after new capital investments in plant and machinery take ing as a revolution in machine�tool design, and will be the hold, the high rates in technological progress will be seen. machine-tool industry of the future . That's the way it worked during 1940-43; that is approxi­ 3. Optical biophysics. A major advance beyond molec­ mately the way it will work during most of my firstad minis­ ular biology is currently in progress, the study of all living tration. processes as characteristically tuned electromagnetic pro­ It will be during the last two years of my first administra­ cesses of special characteristics. This direction in biology tion, that the impact of technological progress will begin to was implicit in the work of Luca Pacioli and Leonardo da be felt by the population more generally. Vinci, and was accelerated for a while by the work of Louis My duty, is to ensure that long after I am out of office, Pasteur and others on "optical activity" of living processes. the United States is absorbing improved technologies at rates Modem techniques enable us, increasingly, to get at these sufficient to increase our per capita output tenfold approxi­ processes in the very small. A revolution in biology is now mately each generation. This is not pie in the sky; we already in progress as a result. have, or have in sight, new technologies adequate to trigger 4. New dimensions in computer technology. We now the greatestboom in the history of mankind. need urgently what arecalled "parallel processing" modesof I start with scientific and related manpower. To achieve computer design, capable of processing billions or even tril­ what I have set as my goal, we must build up the percentile lions of "flops"per second . Progressin this directionis under of combined scientists, engineers, and research-and-devel­ way. Under way, but more distant, is the development of opment operatives to about 10% of the total labor force. new kinds of optical-analog/digital hybrid computers, capa­ My next problem, is to rebuild the U.S. machine-tool ble of performing explicit solutions to nonlinear problems industry to a scale and rate of turnover sufficient to transfer stated in terms of the Gaussian complex domain. We need the new technologies generated in research and development such instruments for many branches of laboratory and other into production in general. If investment tax -credit incentives research. We need such instruments to aid us in remote con­ are high enough, and if large flows of low-cost credit are trol of the new, energy-dense productive processes, and in flowinginto industry, industry's appetite for improved prod­ space-exploration applications. ucts of the U.S. machine-tool sector will be enormous. Gov- For the next 10 to 15 years, there are three very urgent

30 Feature EIR July 3, 1987 programs of government, each of which requires intensive Mars program will have the same kind of effect. investment in some or all of these four areas. 1) Military. For example, the first step is to develop a cheaper and :I Moscow's rapid development of its own version of "SDI," better way to get into Earth's orbit from Earth's surface. We of which the first generation is supposed to be deployed by are at the limit of efficiency and cost for rocket-power. We 1992; and Moscow's rapid progress in developing radio­ are now ready to proceed with a better approach. This new frequency and other strategic and tactical assault weapons. approach will be a two-part airplane-rocketship. The aircraft 2) Biology. It is very unlikely that we shall master a cure for will go high into the stratosphere at speeds between eight and AIDS without a leading contributing role by optical biophys­ sixteen times the speed of sound. There, the aircraft will ics research. Progress in this direction will also be important launch the rocketcraft , and return to an airport on Earth. I in our continuing efforts to conquer cancer, and to deal with have two designs for such a system on my desk, one devel­ various problems of diseases of aging of tissue. 3) A Moon­ oped in West Germany, and a modification of the German Mars colonization project, with the objective of establishing program developed in Italy. We are speaking of something the firstpermanently manned colony on Mars by about 2027 which could be developed to fly wi�hin about seven years, A.D. allowing for all reasonable bottlenecks. I intend to steer as much of the military procurement Such a hypersonic aircraft would have other uses. At budget as possible into advanced systems. This will be indis­ eight times the speed of sound, we could fly to the most pensable to maintain effective national defense, and will have distant airport on Earth in not more than three-and-a-half the side-benefitof building up our machine-tool sector, to the hours. At double that, we could re!lch Tokyo in about an great advantage of the civilian sector. hour, and Western Europe in about a half-hour flying time, We should probably be spending about $3 billion a year probably about an hour from terminal to terminal. Develop­ on biological research into a cure for AIDS. A very large ing such aircraft would mean a giant leap in the retooling of fraction of this should go into optical biophysics, including our aircraft industry, and in retooling of the firms which are more efficient instruments for detecting various forms of vendors to that industry. The same technologies would have AIDS-like and other viruses in samples. Much of this ex­ many other uses besides those in aircraft design as such. penditure will go for laboratory instruments of advanced The way the Moon-Mars program would pay us back design, indispensable for this research. This will generate a would be in five-year-Iong half-cycles. We would have to valuable new branch of industry within the machine-tool ante up the advance money to cover the entire investment in sector. each five years of the program's phases, but, during the The Moon-Mars program is not an optional "prestige" second five years, our economy would be paid back in im­ project. The primary mission of the program is the establish­ proved productivity gained from the technologies developed ment of astrophysical laboratories at a required distance from over the preceding fiveyears , and so on. By the time the first the Sun. The principal duty of these installations near the permanent colony was established on Mars, the entire project orbit of Mars is to focus upon very unusual phenomena in would not have cost us a net cent; we would have made a our own and distant galaxies. The immediate benefit ofth is, substantial profit on the entire investment. is uncovering new physical principles of the universe, prin­ These various research and development programs would ciples which will become indispensable for life on Earth be the government's contribution to generating the new tech­ during the second half of the coming century . nologies needed to push the development of the machine-tool Since a sound Mars colonization program will require sector, and thus ensure that the private sector had the highest 40 about or more years to develop, we must begin now, or possible rate of technological progre$. s, and increases in pro- we may be starting too late for our great-grandchildren'S ductivity. needs. To ensure the best result, the Departments of Treasury, The only foreseeable way in which we could colonize Commerce, and Energy would makt use of the LaRouche­ Mars economically, would be to build much of the spacecraft Riemann method. That method of analysis would be used to and equipment we shall use on Mars on the Moon. So, the monitor bottlenecks in the flowof advanced technologies into industrialization of the Moon (largely with automatedor semi­ the economy, to detect the problem; and work to correct it automated industries) is a necessary stepping-stone to Mars long before any significant slowing of the rate of national . colonization. economic growth occurred. This Moon-Mars program, to be completed step by step, Were Alexander Hamilton alive today, he would smile over about 40 years , I project as the main science-driver as he accused me of "stealing his prdgram." Then, he would program of my own and later administrations. In manpower, ask, "Show me how you worked out the methods for mea­ the project will be approximately the scale the Kennedy suring the connection between rates of technological progress administration adopted for the NASA program. The NASA and rates of increase of productive powers of labor." We program repaid the u.S. civilian economy with more than wouldn't talk about much else, sinc� on everything else we 10¢ of benefits for each penny spent on NASA. The Moon- would agree automatically.

EIR July 3, 1987 Feature 31 u. s. backs satanist who leads riots in Panama by Gretchen Small

With two exceptions, U.S. news media and government of­ the key to tracking out the control of the Soviet-run interna­ ficials continue to black out the truth behind the riots and tional narcotics traffic of would-be Panamanian ruler Diaz disturbances which exploded in Panama in June: that they Herrera. The "Gnostic International"today still runsthe Bul­ were run in support of a man who is a long-standing close garian state, which also serves as a central headquarters for friend of Fidel Castro, a gnostic Satan-worshipper, and the much of the world's narcotics trade , including its Colombian leading "Panamanian connection" of a major South America and Cuban branches. The Gnostic Church established, and cocaine pipeline into the United States, whose capos. in Peru still directs, the Colombian narco-terrorist group, the M- I9, now sit in jail awaiting trial ! which operated in Panama for many years under the protec- ' The man behind the riots is Panama's former Defense tion of Diaz Herrera's ally, former National Guard Com­ Force Chief of Staff, Col. Diaz Herrera. Forced out of the mander Ruben Paredes. U.S. investigation into the gnostic Defense Forces on June 1, Diaz Herrera issued a string of network in the Caribbean which Diaz Herrera has identified accusations of corruption and fraud against his superior, De­ is urgent, not U.S. support for placing that network in power. fense Force Commander Gen. Manuel Antonio Noriega, which implicated the entire Defense Force command. Pana­ The Villa Coca connection ma's opposition movement, led by a spectrum of competing Diaz Herrera has long been known as the man who runs satanists and members of the South American narcotics ma­ Panama's prostitution and contraband networks. Questioned fia, immediately called a general strike, and sent their people by Panamanian reporters in June about accusations that the out rioting, demanding Panama's military and government Panamanian military is involved in drug-trafficking, Diaz be overthrown because of Diaz Herrera's charges. Herrera could only respond that "drug-trafficis everywhere," Diaz Herrera insisted that President Reagan and the Pan­ and refuse to further answer the question. amanian people must listen to him, because he is acting at No wonder. Diaz Herrera was the contact man in Panama the behest of a gnostic Indian guru, Satya Sai Baba, his for Peruvian cocaine chieftain Reynaldo Rodriguez LOpez's "secret weapon" against Noriega. He added also that he, Diaz operations, until that operation exploded, literally, on July Herrera, is coordinating his activities with a network of prac­ 24, 1985, when a gigantic cocaine laboratory blew up in a ticing cultists in the Caribbean holding powerful positions, a mansion located in one of Lima's richest districts. While network which includes leaders of the Socialist International Rodriguez was not caught until a year later, his network and Cuba's Fidel Castro. began to unravel, becoming famous as "the Villa Coca case." Except for EIR (June 19) and the Wall Street Journal Since the 1970s, Rodrfgueil had runone of the largest (June 11), Diaz Herrera's gnostic connections have been cocaine pipelines in the Western hemisphere, channeling blacked out in the United States. Yet, those connections are cocapaste and cocaine from Peru, through Panama and Mex-

32 International EIR July 3, 1987 bornin 1926, in the month of August, the 13th of August; if you want to know the hour, I be­ Fidel, DiazHerrera : lieve it was 2:00 in the morning. It appears that the night could have been influential later in my a 'mystical' relation guerrilla spirit, in revolutionary activity. We should look at other things now, no? What was Diaz Herrera: (From the June 8, 1987 interview that day like , and if nature also has some influ­ suppressed by U.S. media) Man , Fidel is a mys­ ence over the life of men. But I think I was born tic, didn't you know? I have spoken twice with at dawn ...th us, I was born a warriorbecause Comandante Castro , and we spoke in this way, I was born already at night, around 2:00 in the that he is a mystic. Do you know why? I don't morning.... know what you think of mysticism; I don't know (Responding to Frei Betto' s observation that what the dictionary says "mystic" means, but he "the number 26 has recurred several times in is a spiritual man, despite his being a Marxist­ your life") Well, I was born in 1926, that's true; Leninist, and he is a profoundly human man, to I was also 26 years old when I began the armed the core. He is a great friend not only of Panama, struggle, and I was born on a day, 13, which is but an extraordinary friend to me . half of 26. Batista carried out his coup d'etat in Fidel Castro: (From a 1986 discussion with the 1952, which is the double of 26. If I were to Brazilian Dominican priest, Frei Betto) I was study it, there could be some mystery about 26.

ico, into the United States. As partof his operation, he ran a Dfaz Herrera's ties to Peru's police are long-standing, virtual slave trade from Peru , to Mexico, and the United going back to the days when he studied at the La Campina States, traffickingin human beings as "mules" for his cocaine Academy of the Peruvian Civil Guard, a sister police service traffic. By the 1980s, his operation had firmly established its to the PIP. Colombian connections, forming an integral part of the co­ caine operations of the so-called Medellfn Cartel of Carlos The banking connection Lehder and Pablo Escobar Gavfria. Dfaz Herrera was protected for years within Panama's Uncovered with the explosion of Villa Coca, was the Defense Forces by U.S. banking interests and their allies in network of Peruvian police which had protected Rodriguez, the intelligence community, despite his links to the drugtrade a network centered in the Peruvian Investigative Police (PIP), and to Cuba. In September 1985, Dfaz Herrera attempted a particularly during the 1980-85 Belaunde government. The coup against General Noriega when he was out of the coun­ official car issued to a top adviser to Belaunde's prime min­ try-on behalf of then-President of Panama Nicolas Ardito ister, Luis Percovich Roca, who also served as interior min­ Barletta. Nicky Barletta, as his American friends call him, ister, was parked in the driveway at the time ofthe explosion. was the banker who set up the offshore banking center in Rodrfguez was listed in PIP telephone directories as a top Panama in 1970 to be, as he put it, "more secret than Switz­ adviser to the PIP High Command, a position he had report­ erland," after studying economics at the University of Chi­ edly held since 1980. PIP Generals Jose Jorge Zarate and cago under George Shultz. Eduardo Ipinze Rebatta were soon cited as the top protectors In his press conference to denounce Noriega, Dfaz Her­ of Rodrfguez within the PIP. rera took special care to praise Barletta as "my personal The Panamanian connection also immediately surfaced. friend, even though he may not want it. I admire him great­ Rodriguez ran a major portion of his operation through his ly." When the June crisis broke, Barletta was one of the first tourist agency, Seturin, which then established a network to back Dfaz Herrera's charges against Noriega and the rest within Air Panama. Also discovered, was that Rodriguez and of the military during the June crisis. PIP General Jose Jorge Zarate, worked closely with Col. Dfaz Since General Noriega has collaborated extensively with Herrera. United States anti-drug agencies in the war on drugs-in-

EIR July 3, 1987 International 33 eluding most recently aiding the passage of legislation allow­ afraid of the mystic. ing bank secrecy to be lifted for drug-runners-it is not Man, Fidel is a mystic, didn't you know? I have spoken surprisingto findU. S. and Panamanian banking interests tied twice with Comandante Castro, and we spoke in this way, to the "offshore" international banking center in Panama, that he is a mystic. Do you know why? I don't know what financingand backing the opposition's riots against Noriega. you think of mysticism; I don't know what the dictionary What is shocking, is that Reagan administration officials says 'mystic' means, but he is a spiritual man, despite his arealso backing the efforts of the drug mob to seize power in being a Marxist-Leninist, and he is a profoundly human man, Panama. The week of June 23, the Miami Herald. Los An­ to the core. He is a great friend not only of Panama, but an geles Times. and Washington Post. each reported that Reagan extraordinary friend to me. administration officials are rapidly reaching "a consensus" They are investigating who Shri Satya Sai Baba is. This that the United States must force Noriega to resign as Defense is a secret weapon, powerful, which they are afraid of. He is Forces commander, despite the fact that officials recognize a black with an afro, whom I saw for the firsttime in Buenos that Noriega has proven a reliable ally to the United States, Aires ....They are afraid of this man, simply because this and that his forced removal may "trigger political chaos" at man has demonstrated that he is nothing more nor less than a the Western hemisphere's strategic chokepoint, the Panama new divine incarnation, equal to Christ. Canal. There are four priests-take this down-who have this According to the Miami Herald. "the debate within the book. Father ErnestoJa en ...you know the line he is with, administration is still whether to endorse or abandon Norie­ more popular church, a left-wing type ....I gave it to Father ga, but slowly it's coming around to ponder the question, Rosendo Torres of Radio Hogar, a Jesuit theologian. I gave 'How do we abandon Noriega?' " Threats to withhold U.S. him the same book of "Satya Sai Baba"-I call him "swami" economic and military aid until Noriega resigns are now because we are now intimate friends-to Father Carlos Vil­ under consideration, these papers report. lalobos ...and Father Carlos Perez Herrera, who despite It is acknowledged that it was Diaz Herrera's denuncia­ his not being in a priest's position, knows about theology. tions that provoked the policy shift. "Whether the United Do you know why he knows of theology? You are very States continues to tolerate Noriega or not, the fact is that the young. Do you know who Perez Herrera is? He ran as vice situation in Panama is different now than it was before Diaz president of the ultra-leftin the last electoral campaign. There Herreramade his accusations," a U.S. official told the Miami are other people to whom I have given books . . . only people Herald: "'People fear Noriega much less now than they did of the left. beforeDfaz Herrera[made his statements J. As a result, power They have always called me communist, leftist, atheist; is likely to slip from his hands, totally leading to they have oftenthrown this nameagainst me, but now it turns instability. ' " out, when I want to enter a little into mysticism-and now Thus, the argument goes, the United States has no choice retiring me, retired, or retirable, or half-retired, as they have but to adapt to the new situation, and bring down Noriega. said-I want to get eloser to the paths of the Lord, and they To reverse the stampede toward that suicidal "consen­ become afraid. Why? Why? Fidel understands this. Do you sus," EIR here provides excerpts of those revelations by Dfaz know Fidel? Personally? ..I have spoken twice with him,

Herrerawhich have been suppressed by the U. S. media. Dfaz not on semantics, profoundly. . . . Herrera gave the interview, published by La Critica on June Any good president, not only Fidel, I think that-man, I 8, to a groupof Panamanian and Cuban journalists. think that Qaddafi , for all that he is called a terrorist, wouldn't assassinate children. I think that Reagan made a mistake, because if he wanted to kill Qaddafi, fine, but I think that the target should be Qaddafi because they accuse him of being a Documentation guerrilla-maybe, I don't know; this is a question of judg­ ment of values-but killing a child over there in Tripoli, I'm not in agreement with that .... Look, this story began in Buenos Aires, it has mystical ' implications ....In politics, this is of profound importance Diaz Herrera s ravings for Panama. Dr. Jose Francisco Peiia Gomez knows about this, you can cite him. I refer to 'Sai Baba,' this black man There it is. Take the photograph. This is the man. This is the with an afro . . . in the same way that Dr. Jose Francisco man whom they are afraid of, not me ...because they know PeiiaGomez-nothing more nor less than a politician of this who he is. I am not the only one who has read of him .... level-he has recounted in front of some people that I respect Do you know why they did not want to publish my things, a lot-I don't want to betray confidences-but, for example, why they edited me, and cut everything? It was obvious, they he spoke of mysticism to me, before I did to him. He told me cut everythingbecause I spoke of mysticism ....They are that he has spoken at least twice with the spirit of General

34 International EIR July 3, 1987 Torrijos, in the Dominican Republic-I don't know by what means-but that the spirit of Torrijos was restless because Alert on Poland he had been assassinated .... I think that Reagan has been an extraordinary Presi­ dent. ...Fidel has an extraordinary team, I imagine that Reagan also has one; Gorbachov must have one , and speak­ ing of Gorbachov, look, Russia is spending millions on stud­ ies on paranormal phenomena. Did you know that? They make people speak from Moscow to Leningrad with telepa­ thy and other things. This goes back years, man-then when someone brings up a man like Shri Satya Sai Baba, people get nervous .... Now they say that I am crazy, and they take me to the psychiatrist. . . . I have called two already, they can vouch for it, this has nothing to do with disorders, but rather neuro­ vegetative distonias. Take this down .... I am not at all brave , but if you touch me now, I'm Kremlin orders war trembling-I'm crazy-I'm trembling .... No , there is no good government here ....There are no on John Paul II economic plans here ....There is not one single economic plan to present to the InternationalMonetary Fund .... The global mobilization by the "Zionist lobby" against Pope I want to reach an understanding with the Ameri­ John Paul II over the pretext of the Pope's meeting with cans ....I am not an enemy ofthe Americans, but they have Austrian President Kurt Waldheim, who has been targeted been using me savagely. . . by as-yet-unproven charges of World War II "war crimes," Sai Baba is an "avatar," which in Hindu means a prophet. was ordered directly from Moscow. The orders were deliv­ He has demonstrated that he is divine ....He sent a message ered to Canadian liquor magnate Edgar Bronfman's organi­ through an emissary . . . that he was going to do a couple zation, the World Jewish Congress, which has been negoti­ things here so that we would believe. One of them that he ating secret deals with the Kremlin. told me in advance, which was what happened in Red Square After the Pope's recent visit to Poland, Mikhail Gorba­ in Moscow, and sent a small plane from West Germany chov personally became deeply alarmed. The Soviet dictator violating all the air space of Russia-the second power in the fears the national resistance movement which the Pope world. So that you would know, and tell it to Gorbachov: It launched there. He is committed to moving more Soviet was this Sai Baba. Then, he says afterwards-I am very troops in to crush Poland as soon as the "zero option" accord, afraid to believe him-that if you want proof, that is in front to withdraw the protection of U. S. intermediate-range nucle­ of your noses, I am going to put in Howard-the air base ar missiles from Western Europe, is signed with the United which feeds everything in Central America, full of radars and States. things-a small Costa Rican airplane ....If he wants, he Meanwhile, Pope John Paul n has committed himself, can put one in front of the White House. . . . despite pressure from the appeasement faction in the Catholic I still fear death, I have not been able to correct this. This Church, to two spectacular anti-Soviet moves: man says that one should not fear death, because he says that 1) Banned by Moscow from visitingLithua nia, the Pon­ death is like a change of old clothes for new clothes, that the tiffsent an 18-page "pastoral letter" to Lithuanian Catholics spirit leaves, and rises. He believes in incarnation, that there urging them to respect their "freedom of belief," stating that are several lives, a cycle of equal lives .... Church membership should not be viewed as "unpatriotic." Arnulfo [Arias, ex-president of Panama, Hitler support­ In Rome at the end of June, he will celebrate the 600th er, and also a declared satanist) is not as crazy as they have anniversary of the Christianization of Lithuania with exiled tried to say in this country . . . when he says "history repeats Church members. itself in a spiral," because history is cyclical. . . . There will 2) Denied by Moscow the right to visit the Ukrainian be another leader in Cuba when Fidel dies physically. I don't capital of Kiev in 1988, the Pope has announced that he will know who it is; that [death) of Fidel will be an irreparable hold a celebration in Rome July 9·10, 1988, with Ukrainian loss; because at the personal level, I don't know if Raul Catholics (Uniate) and "Autocepbalous" Ukrainian Ortho­ [Fidel's brother) has this capacity which I know in Fidel dox to commemorate the 1 ,OOOth IUlniversary of the "Chris­ personally, profoundly human. They say he killed people, tianization of Kievan Rus." Both ,the Ukrainian Uniate and that he shot people. Well, it is that these were the circum­ the Ukrainian Orthodox Church have been outlawed by the stances for Fidel. . . . Soviets.

EIR July 3, 1987 International 35 Before his visit to Poland, a nasty campaign against the others, the benefits of culture, and able to increase that cul­ Pope took offins ide the East bloc. In May, Sovetskaya Litva, ture . the party paper of Lithuania, charged the Vatican and its supporters with trying to "give a pure political orientation" To 'live heroically every day' to the 1988 millennium, and with "falsifying the events con­ Speech on June 12 at Danzig, to youth, on the theme of cerning the 1 ,OOO-year celebration." resisting the social climate no matter how negative it may be: The speeches excerpted below show what it is that the Man acts, according to the truth ... dictated by his Soviet dictatorship fears . We present quotations from Pope conscience, even though he may act against that truth. At John Paul II's speeches in Poland, translated into English that point, begins the essential drama, as ancient as mankind. from the Italian translation that appeared in Osservatore Ro­ In the moment, when the divine commandment is shown to mano, the Vatican newspaper. All emphasis is in the original. him, man chooses betweengood and evil .. In the firstcase­ he grows as man, and always becomes more that which he Drama of Polish agriculture must be. In the second case-man degrades himself. Sin Sp eech given in Tarnow on June 11, during the beatifi­ diminishes man. cation of Carolina Kozka (Osservatore Romano headlined · ..One of the threats, is the climate of relativism. A the speech, "The Great Dignity of Woman" ): threat, is the vacillation of principles and truth, upon which "God has chosen that which is weak . . . to confound the are built the dignity and development of man. A threat, is the strong, to confound the scholars" (1 Cor. 1, 27) ....This infiltration of opinions and ideas, which lead to such vacil­ young girl . . . speaks of the great dignity of woman: of the lation.

dignity of the human being. Of the dignity of the body, even · . . The Church in Poland, during these days of the though, in this world, it is subject to death and is corruptible, Eucharistic Congress, has thus concentrated on this love of just as her young body was submitted to death by the assassin, Christ "up to the very end," to discover the source of the but this human body bears within it, the sign of immortality same spiritualfo rce , before all the sons and daughters of the which man must reach in God, eternal and living, through this sorely tried Polish earth.

Christ ....She gave her young life, when it had to be given, · ..This force is needed, ill order not to fall into the to defend her dignity as a woman. To defend the dignity of a temptation of resignation, indifference, doubt, or inner emi­ Polish girl, of a peasant girl. "Blessed are the pure of heart, gration; into the temptation of a flight from the world which because they will see God." (Matt. 5, 8) can take many shapes, a flight from society, from life. Or Agriculture, is in fact, bread . The bread from which man even, into the temptation towards flight inthe literal sense of lives. Man does not live by bread alone, but to live, man the word-to abandon the Fatherland; intothe temptation of must have bread. Therefore is it so close to our heart, that no a lack of hope, which leads to the self-destruction of the one on this earth shall lack bread, that bread shall not be personality, of one's own humanity, due to alcoholism, nar­ lacking in our Country . . . throughout the world, there is cotics, sexual abuses, the seeking of sensations, the refuge agreement, that the lack of bread is a scandal ...at the same in sects or associations estranged from the culture, the tradi­ time, it is known, that the Polish rural world today, due to tions, and the spirit of our Nation ... especially when, the dramatic experiences which have become its lot, is living through various ways, the attempt is being made to convince through a complex crisis, both moral and economic . one, that that which is "scientific"and "progressive," contra­ How easy it would be , to list up the errors commited in dicts the New Testament ....

the past, and those which continue, as witness to the under­ · ..This force is needed, to live heroically every day, estimation of agriculture, which has become the field for although in a reality which is objectively difficult, to keep up unreflected experiments , lack of trust, and even, discrimi­ the loyalty of conscience in professional work, and not to nation. succumb to the conformism, so much in vogue today, not to But the peasants, are in fact, not just those who nourish remain dumb, when someone else suffers a wrong, but to others , but those who constitute a factor of stability and have the courage to express just opposition and take up the permanence. defense. The daily courage of a youth, is courage full of . . . Let Polish agriculture emerge from the many-sided initiative ...not flightfrom a difficultsituation .

threats, and cease to be condemned to a mere struggle for · ..Here , in this place, at Westerplatte, in September survival. Let it experience, many forms of help from the 1939, a group of young Poles, soldiers under the command State. Many deformations of rural life find their origin, in the of Major Henryk Sucharski, resisted with a noble obstinacy, secondary status of the peasant, as a worker, and as a citizen. committed to an unequal fight against the invader. A heroic Thus, the model of the peasant, and of the peasant-worker fight. They have remained in the memory of the nation, as an who works with little result, and to the point of exhaustion, eloquent symbol. . . . should be replaced, by the model of a fruitful and independent Each one of you, young friends, finds in life, one's own producer, knowledgeable and able to profitfr om, no less than 'Westerplatte . '

36 International EIR July 3, 1987 Uncover UNICEF links to child-sex/espionage ring by Mark Burdman andVivian Zoakos

The Belgian director of UNICEF, the United Nations' arm for blackmail and espionage. for the ostensible protection of children, was arrested June The involvement of UNICEF' s Belgian organization with 18 for participating in an international pedophile ring which international pedophilia was uncovered when police con­ used UNICEF facilities to supply children to wealthy pedo­ ducted a sweep of UNICEF's headquarters June 18. Accord­ philes. Belgium's UNICEF director, Josef Verbeeck, was ing to a statement from a police spokesman, the sweep was only one among 12 individuals arrested in connection with motivated by a broader investigation, centered on the Brus­ this child pornography and procurement ring. sels Center for Research and Information on Infants and According to the Belgian police, the ring spans the at Sexuality. Examination of the UNICEF building turned up least 16 countries, where investigations are now beginning. evidence that the basement was used to store pornographic As shockingas this news may beon purely moral grounds, pictures of children. Evidently, a computer was used to dis­ what makes the case explosive is the fact that UNICEF's tribute pictures of these children to a list of 400 "wealthy pedophile activities appear intimately intertwined with intel­ clients," who would choose sexual partners from among the ligence operations. children available. UNICEF director Verbeeck was arrested as part of a As a result of these findings, the Belgian authorities ar­ crackdown on a child porn ring centered in the Brussels rested two UNICEF employees. The first was UNICEF's suburb of Ixelles, headquarters of the Center for Research caretaker, Michel Falu, as well as itsdirector, the 63-year­ and Information on Infants and Sexuality (French acronym old Verbeeck. Formerly a journalist for a leading Belgian, CRIES). Already five years ago, the director of CRIES was Aemish-Ianguage daily, Verbeeck had used his UNICEF arrested for using hishigh security job at the Belgian Ministry position to procure children, often from broken homes, for of Justice to procure and leak classified documents. Other his international clientele. Since UNICEF is the best-known CRIES members have been arrested for similar espionage "child help" agency in the world, it was doubtless easy for activities. Verbeeck and his associates to procure large numbers of For intelligence professionals, the combination of pedo­ young ones for sexual exploitation. philia and intelligence-gathering points to a likely Soviet According to the Belgian police, names of infants as involvement in the entire affair. young as 8 months in age were found in the UNICEF base­ EIR has in the past published extensive documentation of ment computer that stored the children available internation­ another United Nations-centered, international pedophile ally to pedophiles. network with documentable Soviet tracks. This is the case of Verbeeck, however, was not operating in isolation. Ac­ WICCE, a U.N. organization which is the coordinating cen­ cording to reports published June 20 in the Italian daily II ter of a self-avowed neo-pagan movement headquartered in Messaggero, the investigation into the UNICEF-linked in­ Geneva, Moscow, and Rome. It was founded on the initiative ternational pedophile ring extends to Holland, Great Britain, of assistant U. N. secretary general Robert Mueller at the France, and Switzerland. Among those arrested apart from 1976 "Year of the Woman" conference in Brussels, Belgium. Verbeeck and Falu, there were eight other Belgians, plus one In Moscow, WICCE operates out of the offices of the Swiss and one Dutch citizen. Soviet Women's Committee, under Galina Alexandreyevna. The hub of the entire network, where at least one arrest Studies by EIR of mass murder cases and countless interna­ was made already last March, is apparently the cited CRIES tional pedophile rings, which in the United States alone are organization. Under the guise of studying so-called infant responsible for victimizing as many as 400,000 children, sexuality, CRIES and its affiliate offices in Switzerland and have consistently turned up WICCE involvement. France gained access to children whom, authorities believe, The pedophile activities are used to provide Soviet and it used to service pedophiles in about 15 countries. These other friendly intelligence networks with lavish oportunities include most of Western Europe, the United States, Canada,

EIR July 3, 1987 International 37 tries, that coordinates intelligence and police work in the battle against terrorism. k As shoc ing as this news may be Carpentier passed that intelligence over to terrorist net­ on purely moral grounds, what works. In at least one instance, he passed documents from makes the case explosive is thefa ct the files of the Belgian vice squad to the leftist magazine Pour. He also passed on a secret report of Interpol-Wiesba­ that UNICEF 's pedophile activities den on the German Red Army .Fraction terrorist gang. appear intimately intertwined with For these and related activities, Carpentier wasja iled five intelligence op eratiOns. years ago. However, his job at the ministry was handed over to another CRIES figure, Michel de Cree. Why and how this outrageous breach of security occurred is still to be investi­ gated. In any case, what is known is that de Cree predictably continued Carpentier's intelligence activities. For this, he Japan, and two African countries. CRIES is also the link himself was arrested in March of this year. which ties the pedophile activities of this network to illicit According to Belgian sources consulted by EIR , their job intelligence operations. in the Ministry of Justice had given Carpentier and de Cree­ It was investigations into the CRIES network which led who were simultaneously involved in child-pornography authorities to UNICEF. Another trail led across the border to procurement activities-access to some of the most sensitive the Netherlands, where police found a photographic labora­ information passing over the diplomatic and bureaucratic tory stocked with thousands of feet of pornographic film. tables of Europe. The full dimensions of the security threat CRIES was founded by one Philippe Carpentier, a former to the West which all this implies can, at present, barely be functionary of the Belgian Justice Ministry arrested five years imagined. ago for leaking secret documents. Carpentier's high security Meanwhile, the investigations are continuing. There has position at the ministry was that of translator of documents even been some talk that the names of the 400 high-ranking from the so-called "Trevi Group." This refers to an intermin­ pedophiles found in the UNICEF computer may be released isterial body, involving Western interior and justice minis- to the public.

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38 International EIR July 3, 1987 Peru

Garcia sticks to anti-IMF policy in face of cabinet crisis by Luis Vasquez

In what Peruvian President Alan Garcia himself described as narco-terroristmovements Shining Path (Sendero Luminoso) an act of unpardonable treason, Prime Minister Luis Alva and the MRTA to reach a working agreement with his party Castro, also Economics Minister, abruptly resigned his posts to overthrow the Garcia regime. At the same time, Commu­ at a hastily convened cabinet meeting June 22, while the nist congressman Gustavo Espinoza casually told a stunned President was out of the palace. Curiously, Alva Castro's press conference that the PCP "will not await the elections of resignation had been announced one day early by the U.S. 1990 to come to power. The current regime could end unex­ daily, The Washington Times, leading mouthpiece of the pectedly, perhaps through a coup d' eta1." international group of Reverend Moon. According to that These extraordinary statements are no mere boasts; they newspaper, Alva Castro's departure signifies a rupture be­ were, in fact, coordinated for maximum impact, just as a tween President Garcia and the private business sector, and large combined force of Shining Path and drug traffickers could ultimately lead to the seizure of the governmentby pro­ seized military control of a vast region of the Peruvian jungle Soviet military layers . surrounding part of the departments of Huanuco and San The Times' "predictions" are in fact part of a political Martin, located in the easternpart of the country. trap mounted by combined Nazi-communist forces, accord­ According to an interview withthe drug traffickers, cor­ ing to which the Garcia government would be left with no respondents from Lima television channel 5 and the maga­ other choice than to either go begging on its knees to the zine Caretas (both linked to the pro-drug politician Manuel International Monetary Fund, or hand the country over to the Ulloa) reportedthat 12 large villages in the region had fallen Soviets. under the complete control of narco-terrorists in early June, The reality is that the bosses at the Kremlin want to do after a force of more than 300men armed with sophisticated away with the Garcia government, which represents a real weaponry (including Soviet AK-47 combat rifles, the same alternative-not Communist, but Christian-to the barba­ weapons transported on the Pia Vesta ship, on orders of rous genocide of the International Monetary Fund. Assisting Oliver North), reduced the Uchiza police barracks to cinders, the Soviets are the forces of Project Democracy-popularly killing more than 30 police and civilian defenders . known in the United States in connection with the Lt . Col. It took nearly one month before the combined forces of Oliver North networks-both those encrusted in and around the Peruvian police and army, equipped with helicopter gun­ the U.S. State Department, and their agents inside Peru. ships, were able to recapture Uchiza and haul down the red Their objective is to eliminate the nationalist and anti-colo­ flag, emblazoned with hammer and sickle, that fluttered in nial pathway Garcia has opened up for the rest of lbero­ the main plaza of that city, the most important in the region. America, as quickly as possible. However, President Garcia is still far from eliminating the narco-terroristtroops from the area. Less than four days Moscow's Andean 'irregulars' afterhaving retaken Uchiza, a military airplane with 47 per­ The Soviet part in the project has intensified over the sons on board mysteriously" fell" in this same area, and the month of June, as Peru's Communists have divested them­ Lima press was quick to speculate that it had been downed selves of their legalistic masks and launched themselves in by vengeful narco-terrorists. It has already been well-docu­ open insurrection-even armed insurrection-against Gar­ mented that the drug traffickers who operate in the Peruvian cia. The leader of the pro-Soviet Peruvian Communist Party jungle are equipped with sophisticated surface-to-air mis­ (PCP), Jorge del Prado, has issued a public invitation to the siles, and know how to use them.

EIR July 3, 1987 International 39 Peruvian military intelligence sources are seriously con­ only was unsuccessful in halting speculation, but took place sidering the possibility that verysoon , a huge terrorist army­ in the midst of ferocious capital flight which was endangering armed with the best weaponry drug-money can buy-will the future of the Peruvian economy. put in check the entire Peruvian jungle, where the highest­ The flight of private capital is but one outcome of the a1caloid coca leaf in the world is produced. Just as EIR has multimillion-dollar campaign the Project Democracy agents been repeatedly warning, these skirmishes are the first indi­ have run nationally and internationally, including spreading cations of a huge transnational army of irregulars which the the lie that the Peruvian president is a closet Communist Soviets, the drug traffickers, and their accomplices in the whose ultimate purpose is to hand the country over to the "Project Democracy" network intend to raise in the very heart Soviets. By fanning these irrat�onal fears among Peru's busi­ of South America. With this "occupation army" controlling ness circles, this campaign i� on the verge of halting the the Andean spine, all the nations in the area-and not merely impressive recovery of the Peruvian economy which Garcia Peru-will findtheir stability and their future as independent has painstakingly forged over the past two years. nation-states seriously threatened. Deprived of access to foreign credit or assistance, a pen­ The combined assaults around the continent by narco­ alty imposed by a vengeful international banking commu­ terrorist forces-be they Shining Path, MRTA, M- 19, FARC, nity, the future growth of the Peruvian economy is heavily Alfaro Vive, Carajo, Brigada Roja-are nothing less than dependent upon domestic reinvestment of the profitsachieved announcements that, with the goodgraces of the Soviet Union under Garcia's pro-business nationalist policies, which are and their Project Democracy partners in the West, the dream estimated at some $4 billion. However, the combined lack of of Colombian narco-N azi Carlos Lehder of raising a 500,000 political sagacity on the part ofOar ci a 's economic team here­ man army to "liberate" Latin America, is at the point of tofore, and the weeds planted by the Project Democracy becoming reality. crowd, threaten to destroy these hopes.

A dirty partnership A change in policy While the Communists do the dirty work in pushing ahead Alva Castro's resignation infact should make it possible the irregular warfare against the Peruvian state, the white­ to implement a mercantilist economic policy for Peru, with collar agents of Project Democracy in Peru have undertaken the installation of a nationalized central bank and exchange financial warfare against Garcia's government. Recent anti­ controls that will close once and for all the only door that still government declarations made by former Central Reserve remains open in Peru to those pseudo-businessmen whose Bank president Richard Webb, that in fact the Peruvian fi­ capital flight operations-probably fed by the drug trade­ nancial system has acted as a prop for the drug trade since are sabotaging the nation's potential for growth. To shut the 1976, amounted to a public confession of a crime which door opened by Manuel Ulloa will make possible a genuinely minimally should send to jail all the finance ministers who pro-industrial economic policY',desig ned to favor the nation­ put into practice the genocidal policies of the IMF, from the alist business layers who have rejected collaboration with the fall of General Velasco through the arrival of Alan Garcia in drug trade and with anti-national interests of East and West. the presidency; these include Manuel Ulloa, Carlos Rodri­ It is therefore no accident that the Project Democracy guez Pastor, and Javier Silva Ruete. crew are pouring money into the "informal economy" project Exemplarywere the policies of Manuel Ulloa, one of the of Hernando de Soto, whose Institute for Freedom and De­ stars of the malthusian Inter-Action Council, who became mocracy is in the forefront of advocating conversion oflbero­ the czar of the Peruvian economy under the Belaunde gov­ America's budding industrial economies into black-market ernment. With the ultra-liberal financial policies imposed by "Hong Kongs" based on drugs and slave labor. Nor is it an Ulloa under IMF order, Peru was rapidly converted into a accident that De Soto's widely-publicized book, El Otro drug-economy, to the point that, by the end of 1985, it had Sendero (The Other Path) is dedicated to none other than become the world's leading exporter of cocaine paste. It is Peru's "leftists," specificallyto de Soto's close friend, Gus­ worth noting that for publicly asserting this same point in tavo Gutierrez. Gutierrezis the founder of the gnostic "The­ 1985, Manuel Ulloa sued the author of this article for slan­ ology of Liberation" which bas nourished the growth of der-and lost. countless terrorist movements across the continent. On June 14, President Alan Garcia appeared on national The "two paths" that Project Democracy would offer Peru television to charge that the free market in dollars-which are false alternatives. The "Shining Path" of narco-terrorist has survived from the era of Ulloa's banking deregulations­ Abimael Guzman and the "Other Path" of Hernandode Soto fed and serviced the drug trade. Garcia's charges implied a will lead inevitably to the destructionof the Peruvian nation­ criticism of the economic team of then-economics minister state. Both paths lead to national disintegration and to an Alva Castro who, incomprehensibly, had thrown $60 million empire of drugs, something which imperial appetites in both of national reserves onto the free market to avoid a devalua­ East and West want for Peru, and for the rest of the Ibero­ tion of Peru's currency, the inti. This exchange measure not American continent as well.

40 International EIR July 3, 1987 Project Democracy expose shakes Constituent Assembly in Brazil

The political circuits in Brasilia were blown out by an Exec­ his charges on the EIR document. Sometimes the press re­ utive Intelligence Review report on Brazilian links to Oliver ported accurately Salomao's charges of "an international North's Project Democracy. While some of those implicated conspiracy to prevent the new Constitution from asserting have virtually confirmed the allegations made in the report, Brazil's economic sovereignty" (Correio Brasiliense). others are reacting with total hysteria and are seeking a full­ Sometimes it exaggerated by saying "the constituents re­ ftedged parliamentary inquest to look into the charges. Ac­ ceived money from Colonel Oliver North" (Jornal do Bras­ cording to the daily, 0 Globo, the Constituent Assembly ilia). writingBrazil 's new constitution convoked such an inquest, EIR was also subject to considerable public abuse by the June 23. deputies named in the report. Deputy Amaral Netto and bank­ The "bomb" went off June 10. Deputy Luiz Salomao er Deputy Ronaldo Coelho were quoted in the Brazilian press from Rio protested fromthe ftoorof the Constituent Assem­ calling EIR's Brazil correspondent "a Mexican drunkard." bly that seven National Endowment for Democracy (NED) They also slandered EIR founder Lyndon LaRouche. Yet, agents inside that body were trying to write the new Consti­ despite the noise, inquests, and threatened lawsuits, none of tution so as to leave Brazil's economy exposedto the ravages those named have refuted the facts contained in the report of international looters. Salomao inserted the memorandum nor demonstrated that the lobbying the U. S. parallel govern­ (excerpted below) into the record of the Constituent Assem­ ment was sponsoring through the Confederation of Brazilian bly. Commercial Associations was not intervening in the writing The memo was written in Washington by the EIR team of Brazil's new Constitution. Until that is done, the report monitoring the House-Senate hearings on the lrangate scan­ stands on its own merits . dal. It is a preliminary reportbased on mountains of evidence presented to U.S. congressional committees and other sources. It was writtenin response to persistent inquiries from Brazil­ ian EIR subscribers, who read about Project Democracy op­ erations to destabilize the governmentsof Mexico, Panama, Documentation and Peru and suspected something similar must be afoot in Brazil. Brazil's best-known monetarist, Sen. Roberto Campos, virtually confessed that the report hit its mark by issuing Excerpts from the EIR preliminaryreport on Project Democ­ countercharges that Brazil's left also receives money from racy's Brazilian linksfo llow: the NED. Former Finance Minister Antonio Delfim Netto, took an equally pragmatic posture. He said he is going to Oliver North, with his key function in the U(lited States make a list of the leftists who are receiving aid from Cuba, National Security Council, is the operative head of the great the Soviet Union, Nicaragua, and Czechoslovakia. destabilization machine, which, under the name of Project oC:puty Amaral Netto, the vulgar thug who repeatedly Democracy, directs its efforts against sovereign republics, slanderedex-Finance Minister Dilson Funaro,raised the big­ especially in Ibero-America .... gest stink. Netto rose to the podium, June 11, to call Deputy In Brazil, [Project Democracy] is trying to seize control Salomao, "rabble and a shameless liar." For days, Netto over crucial affairs of the new Constitution being written, pursued Salomao through the halls of Congress shouting his especially those directed toward setting a sovereign econom­ epithets. Finally, Salomao replied, "Your Excellency him­ ic policy; and, as will be seen further ahead, it was the main self is the rabble." orchestrator of the campaign to overthrow Finance Minister For a week, the dispute was the hottest item on Brasilia Dilson Funaro. . . . radio andTV news. The press reportedthat Salomao's based Project Democracy primarily seeks in Brazil to disperse

EIR July 3, 1987 International 41 the forces which made possible the convoking of a National CACB. It is composed of, among others: Constituent Assembly, trying to avoid, at all costs, that pre­ Deputy Afif Domingos (Liberal Party, until recently cepts which deepen economic and political nationalism pre­ president of the Commercial Association of Sao Paulo; dominate in the new Constitution. To achieve such ends, Deputy Delfim Netto (PDS); Project Democracy's representatives in Brazil specifically Deputy Amaral Netto (Leader of the PDS in the Cham­ seek to politically radicalize the democratic transition process ber, the most visceral opponent of Dilson Funaro); between extremist forces, relegating crucial economic and Deputy Francisco Dornell s (PFL); social affairs to a secondary plane . Deputy Ronaldo Cezar C�Oelho (PMDB, frontman for The forces which Project Democracy has targeted range British interests and Royal Dutch Shell); from nationalist military factions to businessmen and politi­ Deputy Alysson Paulinelli (PFL, ex-minister of agri­ cians who consider state direction of the economy to be culture, with strong links to Ronaldo Caiado, leader of the necessary. It calls these groups "mercantilists" because they UDR, which is sponsored by the TFP [Tradition, Family, adhere to Colbert's economic doctrines. The Project Democ­ and Property , a royal restorationist cult]); racy policies opposed to them are characterized by their strong But the star is, without any doubt, Sen. Roberto Campos. adherence to genocidal malthusianism. Additional components organized around the CACB are: For such motives, Project Democracy is involved in var­ TheSociedade Rural Brasileira, presidedby Flavio Telles, ious events in the country . linked particularly to the Associacao Comercial de Sao Paulo The Brazilian connection of the business wing of the and to Deputy Afif Domingos. The National Banking Fed­ National Endowment for Democracy, the Center for Inter­ eration (Fenaban), and most particularly its vice-president, national Private Enterprise (CIPE), is the Confederation of Teophilo Azeredo Santos, (the rebellion against Funaro came Brazilian Commercial Associ1ltions (CACB) directed by out of Fenaban when he tried to begin regulations to lower businessman AmauryTemporal . interest rates, reducing the speculative spread which the The CACB has suddenly become the center which brings banks charged.) Ney Figueiredo, political adviser to Fenaban together diverse forces striving to destroy the state sector of and other business sectors, plays a significant role. the economy, promoting Adam Smith's colonial liberalism . Several members of the Maksoud family, the owners of (Attached is a clipping of an article by Amaury Temporal hotels which carry their name and Visao magazine sym­ attacking France's Colbert, one of the great architects of the pathize with the group's theorttical leadership. idea of creating a sovereign industrial state, free from usury's Another organizer is Jorge Flores, a chief of the Getulio power.) Vargas Foundation and former president of David Rocke­ In CIPE's official bulletin of Feb. 4, 1987, regarding feller's Chase Manhattan Bank!, and today a director of Sud Brazil and CACB it writes: Americana de Seguros. All of this Project Democracy organizing came to light The Confederation of Brazilian Commercial As­ with its open manipulations to impose its points of view on sociations (Confederacao das Associacoes Comerciais the subcommissions of the National Constituent Assembly do Brasil-CACB) will design two seminars on gov­ (to illustrate the case, a clipping from Jornal do Brasilof ernment relations. The first seminar for government May 27, 1987 is attached.) authorities will examine the function and purpose of At the same time, in wen-informed circles there is a business-government relations and lobbying, and dis­ strong suspicion that the electoral campaigns of some who cuss business lobbying techniques in the U. S. and are today constituent deputies ; were financed by means of other democracies. CACB will direct the second sem­ CIPE money. Something like that would not be impossible, inar toward its memberships, and will cover this same since CIPE financing has already occurred in other countries topic in addition to presenting explanatory sessions on (Mexico and Panama). the legislative process, legislative cycle, organizing grass roots action and alliances, political endorsement Roberto Campos and the Bukharin networks and rating program and regulatory lobbying. Since The case of Roberto Campos is singular because it is an Brazil's Constitution is still in its formative process, example of the type of political intelligence network charac­ CACB views these seminars as a timely way to dem­ , teristic of the National Endowment for Democracy (NED) s onstrate the value of private sector participationin the plan. legislative process to governmentauthQrities and busi­ Campos, like Delfim Netto, came out of pro-Soviet ness executives. Marxist networks, or so-called Fabian Socialism. Campos Since the period before the November 1986 elections went through an apparent and "inexplicable" transformation, and with a view to winning deputies in the National Con­ passing to represent supposedly contrary positions, now stituent Assembly who promote free trade-which is Project sheathed in "anti-communism." This transformation was not Democracy's program-a group organized itse�f around the due to an analysis of conscience, but to an international

42 International EIR July 3, 1987 change in the political networks to which he belonged, as­ partisan of the CACB, who practically prevented Dilson Fu­ sociated with the Nikolai Bukharin networks .... naro from appearing before the National Congress. On the external front, the campaign of attacks and dis­ TFP, UDR and the Sovereign crediting of Funaro came not only from bankers, but from Military Order of Malta one of the most influentialpeople in the National Endowment It is important to stress the relation between Deputy Afif for Democracy (NED), Charles Z� Wick, director of the Domingos and the Sociedade Rural Brasileira, chaired by United States Information Agency. In that capacity, Wick FlavioTe lles, to explain that Project Democracy coordinates administers the official provision of funds given by Project in Brazil with the landed families linked to the old European Democracy's NED. At the beginning of April, Wick visited oligarchy which owns great latifundia [landed estates] in Brazil for meetings with the executives of Brazil's major TV Brazil. networks, among them Roberto Marinho, owner of TV Glo­ It is already in the public domain that the UDR, presided boo by Ronaldo Caiado, grew with the support of the rural asso­ Starting with the Marinho-Wick meeting, TV Globo made ciations which gave money and political support to block a dramatic change and stopped favoring the moratorium. TV agrarian reform. Overnight theUDR became a private army Globo's Washington correspondentreceived orders to reduce of the latifundists. to a minimum coverage of the activities of Dilson Funaro, The UDR, it turns out, also received money from the who was then in Washington. The order received was that Nazi Tradition, Family, and Property (TFP) group and there coverage focus on the complaints of bankers about the "dis­ are signs that financing came directly from the French Roth­ astrous" Brazilian situation. On April 10, TV Globo decided schild family. TFP is the paramilitary arm of Prince Luiz de not to cover Dilson Funaro's press conference in the Brazilian Orleans e Bragan�a, financedby the Thurnund Taxis family. embassy in Washington .... Prince Luiz, in tum, is an executive member of the Sovereign MilitaryOrder of Malta, an agency which has collected mon­ The dirty linen of 'Irangate': Edmund Safra ey for the Nicaraguan Contras, and to which belong, among By following the trail of the Swiss banking apparat which others, Alexander Haig and the recently deceased William Oliver Northused to transfer arms and money to the Contras, Casey (CIA director when Irangate exploded). we are led directly to banker Edmund Safra and the Anti­ Another notable of this oligarchic circle-which is will­ Defamation League (ADL), the Zionist lobby which has nu­ ing to take arms to stop agrarian reform-is the German­ merous adepts in Brazil. born Wolfgang Sauer, proprietor of Volkswagen do Brasil. One of the key components of the Contra supply opera­ Sauer is also a knight of the Sovereign Military Order of tion is the Swiss "financial consulting" house, Compagnie de Malta. Services Fiduciaires (CSF). It turns out that CSF is also a Sauer has recently devoted himself to a ferocious cam­ tentacle of the business empire of one of the main financiers paign against the big state companies. In a May 21 seminar and backers of the Sandinistas: RobertVesco , whose lawyers in Rio de Janeiro, Sauer proposed opening up the big state before he fled prosecution included Kenneth Bialkin of the companies to the debt-for-equity scheme. He said that this ADL. ...The airplane which then-NSC director Robert scheme could convert $30 to $40 billion of the Brazilian McFarlane used on his secret visit to Iran belonged to CSF foreign debt, which would literally mean denationalizing the and Republica New York Air Transport Services Corp., a economy. business jointly owned by CSF and Republic National Bank The debt-for-equity scheme, a weapon against the sov­ of New York, in which CSF also had some accounts .... ereigntyof states, was proposed by Henry Kissinger in 1983 Bialkin was the most active intermediary in the merger of at a meeting in Vail, Colorado. He ratified the same policy American Express with the Safrainter ests. in his May 24 [1987] Washington Post article in preparation for his visit to Brazil. Labor movement The debt for equity scheme is actively promoted by the The National Endowment for Democracy (NED) in­ ambassador to the United States, Marcilio Marques Moreira cludes the Cultural Institute of Labor among its Free Trade and by ambassador Ru�ns Ricupero, ex-internationaladvis­ Union Institute programs. The Sao Paulo-based Cultural In­ er to PresidentJose Samey. stitute of Labor is the American Institute for Free Labor Development's (AIFLD) main enclave in Brazil. Project Democracy against Funaro The Cultural Institute of Labor received from the NED, The destabilization which brought the fall of minister Project Democracy's most important organization, at least Dilson Funaro included two aspects, one internal and the $395,000 to financea series of seminars. RobertoMagri , the other external. On the internal front, the UDR which, as we general secretary of the Cultural Institute of Labor, is the indicated above, has its links with Project Democracy played president of the Sao Paulo Light and Power Union, affiliated an important role. Later, it was PDS Deputy Amaral Netto, with the CGT union federation.

EIR July 3, 1987 International 43 Conference Report

We st German Protestant Church prepares to bolt to Moscow by Luba George

From June 17 to June 21, the leadership of the West German attitude of many in Europe is to explore deals with Moscow Protestant Church (EKD) staged its bi-annual Church Con­ now, before the situation gets worse. gress in Frankfurt. The theme which pervaded the conference On June 18, the "Reconciliation with the Soviet Union" was, "Reconciliation with the Soviet Union." Under this day of the conference, President von Weizsacker made his heading, the over 120,000 people participating each day were guest appearance. The forum included Metropolitan Pitirim subjected to intensive conditioning to prepare the way for the and Bishop Longin, representing the Moscow Patriarchate in "neutralization" of Germany and its transformation into a West Germany. Later in the day, von Weizsacker returned Soviet satrapy. The West German population as a whole was for a tete it tete with Metropolitan Pitirim. bombarded with pro-Soviet propaganda in unprecedented The climactic spectacle of the forum was broadcast na­ media play-up of the conference. tionally on television. On the podium, conducting a joint Whenever the name of Mikhail Gorbachov came up, he Protestant-Russian Orthodox prayer for German-Russian was described as "the Great Reformer," and "the Bringer of "union" and "reconciliation" were German oligarch Klaus Peace." The "Reconciliation" theme was hammered home von Bismarck, a leading promoter of a strategic accommo­ by President Richard von Weizsacker, his brother Carl-Fried­ dation with Moscow, the head of the Protestant Church, rich von Weizsacker (a "guru" of the pro-Moscow German Bishop MartinKr use, and MetropolitanPitir im. A West Ger­ "peace" movement), and Social Democratic Party executive man male chorus, who trained specially for the occasion, members Johannes Rau and Erhard Eppler (both notorious sang in Russian, the church chant "Mnogaya Leta." advocates of the "decoupling" of Europe from the United The East bloc attendees included no fewer than 1 ,500 States), to name but a few. Most of the speakers called for East Germans, 51 of whom were high-ranking government abolishing the "Enemy Image" of the Soviet Union that was officials. Side by side with the official EKD literature tables "hatched in the 1950s Cold War,"and replace it with a "Friend were the Communist Party of West Germany and the Soviet­ Image." led VVN "Nazi-hunting" organization, based in Frankfurt. The Church Congress was timed to coincide with the No such courtesies were extendedto anti-Soviet groups. The preparations for the July 6-11 visit to Moscow by President West German-based Internatinal Society for Human Rights von Weizsacker. The President, the son of Ernst von Weiz­ was booted out, accused of working for the "imperialists" sacker, number-two man in Hitler's foreign ministry and one and the "CIA." of the key figures involved in the Hitler-Stalin Pact, is a leading member of the Protestant Church elite in West Ger­ Western nuclear energy, SDI attacked many, currently promoting a German-Soviet strategic ac­ "There are certain technologies . . . like nuclear energy commodation. He made an unscheduled appearance at the . ..that are the Devi!'s work," said Hanover sociologist Congress, and met with the Soviet attendees, who included Oskar Negt at the Congress. Negt made this statement during Russian Orthodox Metropolitan Pitirim, the number-two man a discussion of so-called "Human Technology," conducted in the Russian Church hierarchy. Contrary to popular belief by the Christian Democratic Minister President of Baden­ in the West, the Russian Orthodox Church functions as a full­ WiirttembergLothar Spath. fledged partner in the nomenklatura that runsthe Soviet Union "Chernobyl, Challenger: We've reached the limits of today. mastering human capability and complexity," said American This escalation of the "decoupling" drive is a direct result professor Joseph K. Weizenbaum in his presentation. Pro­ of the U. S. administration's drive to sign a "zero-option" ceeding in the spirit of "reconciliation," he added: "We have arms-control agreement. The proposed withdrawal of U.S. to have a great restructuring, [perestroika !] One thinks of nuclear missiles from Europe is correctly seen in Bonn as a revolution, blood flowing, heads rolling. But I believe that a move to throw West Germany to the Russian wolves, and the bloodless revolution canbe made, andthis is where theChurch

44 International EIR July 3, 1987 Congress comes in." tacked the West German Defense Ministry for revoking per­ Speaker after speaker called the realization of the U.S. mission to the Soviets to film the Bundeswehr (West German Strategic Defense Initiative (SOl) "unpardonable." "Invul­ army). He failed to mention that permission was revoked nerability and mercilessness are one and the same; therefore, aft er Warsaw Pact warships fired on the West. No West it would be unpardonable if the SOl should be realized. . . . German present mentioned this either. Once again, Lutz Leh­ The Prophet Isaiah speaks not of another world, but of a mann "out-russkied" the Russians, interjecting: "Western changed world, which would need no security as power, journalists are more free in the U.S.S.R. than Russians in kingdom or hegemony to live in a safer world," sermonized West Germany ....I met with four Soviet General Secre­ an EKD theologian. taries (Brezhnev, Andropov, Chernenko, Gorbachov) Mr. Meanwhile, back at the "Reconciliation" gathering of Kondratiev . . . and how many Chancellors did you meetT' over 6,000, Vladimir Berezhkov, a formerRed Armyofficial Lehmann forgot to mention that Kondratiev has been in West and a member of the Georgi Arbatov's U. S . A.-Canada Insti­ Germany for only 16 months! tute in Moscow, defended the U . S. S.R. 's accelerated nuclear The climactic moment of this forum was when SPD mem­ energy push, declaring: "We cannot renounce ...for eco­ ber of parliament Dieter Sperling proposed that at the next nomic reasons ...nuclear energy ....We 're not going to EKD Church Congress (1989) in Berlin, "that both the Red go backwards. We are working towards developing fusion Army Orchestra and the Bundeswehr Band will be playing energy but that cannot be done soon." together. " At this point occurred yet another submission spectacle. West German TV reporter Lutz Lehmann, just returned after Pope the target of EKD feminists five years as Moscow correspondent, interjected that "what Surrenderto Moscow is a function of total moral degen­ Berezhkov forgot to mention is that the Soviet Union is pro­ eracy, which was the "other" leitmotif of the Church Con­ moting the 'peaceful use of nuclear energy.'" Berezhkov gress. EKD feminists, witchraft adherents, lesbians, and then remarkedthat Chernobylshook up everyone in Germany homosexuals challenged papal moral authority with posters, much more than in the U.S.S.R. "There were terrible ex­ leaflets, newsletters , and diatribes at the different forums, cesses in the German reactions to Chernobyl." The EKD especially targeting the Pope's "Mary Encyclical," his anti­ conference dutifully adopted resolutions to "Stop Nuclear abortion and anti-homosexual stand. Power" in West Germany. Radical "Catholic" theologian Ute Ranke-Heinemann, The full display of Soviet contempt towards a conference recently reprimandedby the Pope for her attacks on the "Mary of appeasers came when Berezhkov praised the Soviet inva­ Encyclical" and forbiden to teach in.the name of the Catholic sion of Afghanistan. "Unlike what the Western press had Church, became the "heroine" for the EKD feminists. A reported . . . there was a revolution there and we were invited VVN (a Soviet "anti-fascist" front) leaflet was distributed to support the revolution. The mistake was that we didn't attacking the present Pope for his "purge measures" and his understand what epoch we were in and how difficult it was "hostility against women." to make thechang es. . . . That's why the Monarchy hasbeen A pro-abortionposter obscenely depicted the Pope's face invited to aid in the solution ....We want to solve these superimposed on a pregnant woma n's body; there was a problems ...and like those in the Persian Gulf, by political "Peep Show" at the Church Congress where people could see and not military means." a filmof a prostitute doing her routine off-duty activities e.g. , When Vladimir Kondratiev, Soviet TV and radio corre­ shopping, cleaning, walking her dog, etc.; a book on Homo­ spondent in Bonn, spoke, the wildly anti-SOl EKD audience sexuality & the Church (published inEast Germany) was on missed the importof his remarks. display; and other obscenities. Kondratiev spoke of Gorbachov's perestroika. and de­ The EKD's push to internationalize this submission to fined it to mean "speeding up scientific and technological Moscow, was exemplifiedby Carl-Friedrich von Weizsiick­ progress ...e.g. , computer technology and laser technol­ er's initiative for a "World EcumenicalPeace Council" which ogy ....We don't want to miss or pass up any modem got top billing at the EKD Church Congress in Frankfurt, technology . . . And for that we need peaceful and good­ West Germany. Speaking before an audience of 15,000 on neighborly relations with West Germany, our strongest June 20, Carl-Friedrich von Weizsacker, re-issued his call Westerntrading partner. " for a "Peace Council of the Christian Churches. " He said that This was the conference in a nutshell. A Soviet speaker 14 countries, including all the Orthodox Churches within the demands West Germany help Soviet laser and computer tech­ East bloc, have already agreed. Von Weizsiicker said that nology programs, while the EKD Church Congress passes due to the objections of the Catholic and Greek Orthodox resolutions denouncing SDI and "computerization," and call­ Churches to calling it a "Council," it has been recommended ing for scrapping nuclear power in West Germany and de that the "Ecumenical Peace Council" be changed to "World facto unilateral disarmament. Conference on Peace, Justice, and Responsibility for Crea­ After perestroika. Kondratiev turned to glasnost. He at- tion."

EIR July 3, 1987 International 45 The State Dept. , church, and private networks now destabilizing Korea by DavidHammer

The current crisis in South Korea potentially poses grave ment current policy is support for the Korean opposition security problems for the United States and its allies, partic­ Reunification Democratic Party, led by Kim Young-sam and ularly Japan and South Korea itself. On June 22, through the Kim Dae-jung. It was the State Department that in January mission of Assistant Secretary of State Gaston Sigur to Seoul, 1985 forced the returnof exile Kim Dae-jung from the United a meeting took place between President Chun Doo Hwan and States to South Korea, warning the Chun Doo Hwan govern­ Kim Young-sam, leader of the opposition Reunification ment against any attempt to harm the opposition leader. On Democratic Party . Although the Chun government released June 22, Shultz commented on the crisis: "What we believe many of the thousands it had detained since riots began on should happen is a resumption 'of talks not simply about the June 10 and ended the house arrest of opposition leader Kim violence, but about the process through which a transfer of Dae-jung, there were no concessions coming from the RDP. power will take place in a way that reflects the will of the Instead, the party proceeded to back a nationwide "peace Korean people [emphasis added] ." march" scheduled for June 26. On the same day, State Department spokesman Phyllis As of June 25 , it would appear that the opposition is Oakley, commenting on the South Korean government's pos­ determined to push the crisis to the breaking point, leading sible options, handed down a warningto the Korean military: to total chaos in this strategically located country, or forcing "In our view, military intervention would be a serious dis­ the imposition of martial law and/or a military coup. service to Korea's interests ....We urge Korean command­ The following is a report on the organizational struc­ ers to concentrate on the defense of Korea and allow the tures-in the United States and South Korea-that have political process to develop in a manner agreeable to the created the crisis. From the United States, this network be­ Korean people." gins with the U.S. State Department, both officially and On March 2, 1986, less than a week after the U.S.­ unofficially through its affiliated Project Democracy net­ directed coup against Philippines President Ferdinand Mar­ works. This Stateside apparatus in turnworks in tandem with cos, Shultz announced that the policy toward South Korea the ReunificationDemocrat Party, which in turncoordinates would be "the same as it had been in the Philippines." This with the umbrella organizations that call the rioters out into policywas firstenunc iated in 1981, by the Woodrow Wilson the streets. Center in Washington, D.C., of which Shultz is a board From the standpoint of its architects, the policy objective member. The plan is now operational: of this crisis is not democracy, but the consummation of a 1) "the resurrection of the Carter administration's pro­ deal with the Soviet Union and the People's Republic of gram for the withdrawal of American ground forces from China, for the withdrawal ofU .S. troops from South Korea­ Korea"; as proposed by the Carter administration-and the unifica­ 2) "the negotiation of arms control measures for the Ko­ tion of the two Koreas under a Soviet-P .R.C. condominium. rean peninsula, including restrictions on the introduction of For that deal to go through, the Chun government and the advanced new weapons systems and possibly the creation of military-political forces behind it, must be swept aside. a Korean nuclear-free zone"; In this investigative report, where possible, we permit 3) "increased American pressure on South Korea to pro­ the destabilizers to speak for themselves: mote human rights and political liberalization"; and 4) "direct officialdialogue , as well as unofficialcultural , u.s. State Department academic, and economic contacts between the United States Secretary of State George Shultz: The State Depart- and North Korea."

46 International EIR July 3, 1987 Though the Carter proposal for the withdrawal of U.S. Lilley has been a featured speaker before Sigur's Council troops was quashed, Shultz appointed its author, Morton on Religion in International Affairs. Abramowitz, director of the State Department's Bureau of Intelligence and Research. Quasi-governmental: 'Project Democracy' Gaston Sigur, Assistant Secretary of State for Far The "Project Democracy" apparatus of Lt. Col. Oliver East and Pacific Affairs: In February, Sigur spoke at a North is still flourishing, centering around the U.S. govern­ public forum in New York, calling upon Korea to "develop ment-funded, but privately administrated, National Endow­ a more open and legitimate political system." He further ment for Democracy (NED) and the NED's National Dem­ suggested the United States link its military and economic ocratic Institute for International Affairs (NDI). links to South Korea to the government's progress toward According to Linda Pochek of the NED, the endowment "democratization. " provided money for the NDI to run an April 1986 workshop, Sigur is currently under investigation for his role in at­ "South Korean Democratic Development" in conjunction with tempting to line up funding for the Nicaraguan Contras in the the opposition party then led by Kim Dae-jung and Kim summer of 1985 when he served as assistant to Robert Mc­ Young-sam, the New Korea Democratic Party. "It was a Farlane at the National Security Council. Sigur is also a board review of basic party-building techniques, coalition build­ member of the New York-based Council on Religion in In­ ing," explained Pochek. "Then they recently held a seminar ternational Affairs, which has played a Stateside role in co­ which focused on the role of political parties in a democratic ordinating the destabilizations in the Philippines and South transition. But you'll have to call NDI for details, speak to Korea. Vivian Derrick. She knows all about it." U.S. Ambassador to the Republic of Korea James "The NKDP was extraordinarily factionalized. We kept Lilley: Lilley was appointed ambassador in September 1986 stressing coalition," reported the NDI' s Vivian Derrick. "We to replace Ambassador Richard Walker, a political appoint­ told them you just can't have a single issue, the elections, ee, who had acted to thwart Project Democracy efforts. Lilley you have to look at building coalitions around broader is­ was officially with the CIA from 1951 to 1978, serving in sues. . . . So, by the end of the week, they got the idea about Japan, Taiwan, the Philippines, Cambodia, and Thailand. diversifying on issues, reaching out to others, coalition build­ He was deputy station chief in Laos in 1965, at the point that ing, and the importance of having some kind of coherent Irangate's Ted Shackley and Thomas Clines were in the re­ consensus in the party was taking hold." The NDI kept up gion. He was chief of station in Beijing from 1973-75. "He's the contacts after the seminar: "Larry Atwood, our president, been involved with the Agency since the beginning of his went over to Korea with a survey team, to meet with people." career that was essentially concernedwith managing political Atwood, who led the "international observer team" to the change," comments South Korean oppositionist Pharis Harv­ Philippine elections in 1986, is a fQrrner State Department ey (see below). official. The NDI will be conducting another workshop for According to the Japanese magazine Shindoan, Lilley the opposition in the fall. recommended his close friend Donald Gregg, former CIA The credentials of the chief adviser to the Kims' Reuni­ station chief in Seoul, to George Bush as Bush's national fication Democratic Party, Kim Chong-Won, gives a good security adviser. Gregg, when stationed in Seoul in the 1970s, indication of the high-level backing for the party in the United privately circulated his belief that the government of Park States. A long-time associate of Kim Yong-sam, Chong­ Chung-hee should be overthrown. Park was assassinated in Won attended high school in Seoul, then moving to the Phi­ 1979. Later the Korea desk head at NSC, Gregg is now under lipps Exeter Academy in New England. He then studied at investigation for his role in the Iran-Contra affair. Harvard and Columbia universities, at Johns Hopkins' School Reports in the Korean exile community in the United of Advanced InternationalStudie s, and Harvard Law School. States say that the South Korean government attempted to He taught at Harvard, Johns Hopkins, and Rutgers, and also reject Lilley's appointment as ambassador, fearing that "he served as a senior research fellow at the Research Institute would try to overthrow the government." "It's not so good on International Change at Columbia University and at the that a CIA agent for 27 years was sent to Korea," said a Institute for East Asian Legal Studies at Harvard Law School. former student leader now operating out of the Center for He has been involved in research projects at the Brookings Democratic Policy. "The mere fact that he was a CIA agent Institution in Washington and has worked as a research ana­ gave a bad impression to both government and opposition. lyst for the U.S. Defense Department. Students burned his effigy even before he arrived, because they said, 'Oh, that guy's coming to mess up the situation.' The World Council of Churches And the government thought he might be coming to over­ The coordinating centers for the destabilization on the throw the government. I heard the rumor that his appointment ground in South Korea are the World Council of Churches was refusedby the Korean government, but I am not sure.... and its Korean and U.S. National Council of Churches affil­ Because, you know generals, they know what CIA is doing." iates. Said one WesternEuropean-based officialof the World

EIR July 3, 1987 International 47 Council of Churches: "Global ecumenical solidarity with the under the Christian Conference of Asia. As the situation churches and students of South Korea, against the regime, is evolved in Korea, more and more of my time was absorbed increasing. The regime is squeezed. I would say this regime by efforts to support particularlypeople in the DIM and others will be finished by the end of the year. There are similarities being arrested and so forth . They never knew I was with the to the Philippines." Over the past 20 to 30 years, the entire UIM. We worked very carefully. I was not listed on any opposition apparatus, from the well-trained youths throwing letterhead. I never signed my name to anything and when I Molotov cocktails in the streets to the Reunification Demo­ gave my address I always gave it in New York. They [the cratic Party of the two Kims, has been systematically created KCIA] had known about me earlier ....They were getting by these institutions. more and more curious toward the end, but even on the day From the United States, this network is directed by Phar­ Park was killed, I was scheduled to go to a meeting there on is Harvey, chairman of the North American Coalition for my way back to take this job ....It was just a coincidence Human Rights in Korea, a subsidiary of the National that I was there when Park was.killed, just to keep the record Council of Churches. Harvey reports himself to be on the straight. " phone with either one of the two Kims every day. He is also Though Harvey and Ogle had to leave, the apparatus they in regular contact with the State Department. A recent inter­ created took on a life of its own. As Lee Shin Bum put it, view with Harvey was interrupted when a desk officercalled after noting that Ogle trained many of those now leading the from State to give Harvey a rundown on the latest news from current protests, including the spokesman for the National Seoul. "This is a guy I talk to all the time. We talk fairly Campaign for a Democratic Constitution, "They had a center frankly with each other," Harvey explained. in many cities. The government suppressed them at the end "Many of the opposition groups have come up out of the of the 1970s. And now, the people they trained, the labor churches," Harvey reports. "During the last decade, at times leaders and all, they are now acting on their own ....The when no other group could operate legally, they operated out church contributed to the movement at the initial stage, very of the churches. The church was the nurturing ground for the much. Now, the car is in the fourth gear. (laughs) You know labor movement, the farmer movement ... [even] the what I mean?" Buddhist movement began to adapt the tactics and style of When the South Korean government cracked down on the Christian movement." the insurgency in the 1970s, mimy organizations went "clan­ Harvey, along with fellow Methodist missionary George destine," that is, back into the protective cover of the church. Ogle, laid the basis for the destabilization now under way, in "And in the 1970s, and the 1980s also it was virtuallyimpos­ the early 1950s. Their vehicle was the Urban Industrial Mis­ sible to have these groups, so many joined the church and the sion in South Korea, funded by the World Council of Church­ churches said they were renewed by the influxof new blood," es. The UIM, using the slum-organizing "community con­ reported Lee Shin Bum. "Many of my friends joined the trol" methods of Saul Alinsky, creator of Chicago's black Catholics. Some of them joined the Presbyterians, and so youth gangs, organized "Christian" radical farmer, labor, on ....I think the government cannot eradicate this. They student, and other organizations against the government. As used to say they would 'eradioate all the impure elements.' one of Ogle's associates, Lee Shin Bum of the Center for Uproot, or eradicate." Development Policy in Washington put it, "George Ogle was These groupings now comprise the bulk of the two main the man behind the scenes ....He was the key figurewho opposition coalitions, the United Minjung Movement for organized that mission. His wife, Dorothy, was also active. Reunification and Democracy, led by Presbyterian Rev. Moon He developed network building." Ik-Hwan, and the National Campaign for a Democratic Con­ Harveydescribes his work: "I used to work with DIM. In stitution, to which belongs the Reunification Democratic Par­ Asia overall the DIM is known as URM (Urban-Rural Mis­ ty. Rev. Moon Ikh-wan, currently in jail, was trained by sion) because it works with laborers, urban poor, and farmers George Ogle. and peasants, and with cultural and ethnic minority groups. As for how "the troops" are called out on the streets at a They are all together in one program, and that is the title of moment's notice, Shin Bum remarked, "At the Christian it. It is a loose federation of local programs all over Asia in Building [the lO-story Korean Council of Churches building that coalition, and there are similar loose coalitions in other in Seoul] you will see a group of'y oungsters' whose ages are parts of the world which are coordinated with the World 30 to 40 who are actually taking care of the movement .... Council of Churches, which serves as a kind of information The government brands them as the radicals committed to a center for the church to groups to contact each other and as a revolution, full-time revolutionaries." source and coordinator of funding from various church bod­ The ideology of the movement, however, is largely a ies around the world .... creation of the Christian Academy, which in the I 970s trained "In Tokyo I was with the Urban-Rural Mission as a re­ almost 800organizers , for fanners and laborers. "That insti­ search consultant on economic justice issues. I was working tute was destroyed in 1978," reported Lee, "because the

48 International EIR July 3, 1987 government found it very dangerous. That institute was The policy for the destabilization 'is reunification, at any founded by the German Church [Evangelische Kirche cost, as reflected in the title of the new Reunification Demo­ Deutschlands (EKD)]. Almost $200,000 they gave, to Bish­ cratic Party. While the rioters were battling police in South op Daniel Dj i. It was quite a good educational institute. Korea's cities June 10-26, a delegation ofthe National Coun­ People who were trained there are still very active. . . . Many cil of Churches of Korea was in Pyo�gyang, the North Ko­ Catholic and Protestant churches are funded by German rean capital, for negotiations on reunification. "An NCC churches." delegation is in the capital of North Korea right now," reports The EKD also supplied the ideology ofthe insurgency­ Harvey, "and if the political situation allows, will enter Seoul Minjung theology, the Korean version of the theology of on Saturday June 27. The issue of reunification started in the liberation. ''The main figure was the director of the [EKD­ churches. The church initiative to take up the issue at a non­ funded] Research Institute for Theology," said Shin Bum, governmentallevel has gone a long way in helping the public "Dr. Ahn Byung Moo, who is retired now. He is extremely debate form .... well-known in Germany. He was trained, I think, at Heidel­ "Last fall in Davignon, Switzerland, high leaders from berg. He taught from the nationalist point of view. And he the Christian Confederation in North Korea, and seven from himself is a well-known nationalist." the National Council of Churches of South Korea met in Centeredaround heretic Hans Kung, these circles created Switzerland. This was the first timethat has happened. the theology of liberation for Ibero-America and the Philip­ "This meeting was an outgrowth, of a project in South pines. In Korea, they faced a particular problem. As Pharis Korea of the churches to take up the 'issue of reunification. Harveyexplained it: "The church was drawn to finda political When they did, a couple of pastors and some researchers got theology with a language that was not considered treasonous, imprisoned. So they turnedto the World Council of Churches because of the anti-communist reality of the state. This led and asked them to establish an international dialogue on the in a little different direction ....They interpreted the move­ issue that would help legitimate their own internal dialogue. ment of God in history and the identification of justice and So, in the fall of 1984, we had a big internationalconference suffering of the poor as the locus of God's activity and that in Japan on the reunification of Korea. It brought people from led them to examine Korean history in terms of people's the Soviet Union, Cuba, South Korea was there, U.S., Japan, history. That's how a model of Min-jung came to have a and several European countries. Growing out of that, the theological connotation. If God is active in history, then he National Council of Churches adopted a policy statement is active on behalf of and with the poor, bringing about a about reunification." struggle for righteousness." A second conference on reunification sponsored by the The physical training of the rioters, who deploy in the Korean Council of Churches-InteMational Gathering on same paramilitary fashion as the Green Party rioters in Ger­ Peace, Justice, and the Unification of the Koreas-is sched­ many, is conducted in mountain camps, according to Lee: uled for the second week of November 1987. This conference "they have training courses. They call it MT, membership will bring together representatives of West Germany's EKD, training courses. We didn't have it so much at the time, but and numerous National Council of Churches from various now they use the MT. . . . After two weeks of MT, you will nations, including the United States. see hundreds of revolutionaries. They go to the mountains, In the United States, the National Council of Churches of go in tents and so on . 'Intensified anti-government educa­ Christ in the U.S.A. (NCCCUSA, IJsually called National tion.' Actually, it is brainwashing." The courses are con­ Council of Churches) issued a policy statement, "Peace and stantly offered , not only in preparation for a major protest. the Reunification of Korea" on Nov. 6, 1986. It reads in part "One of the courses is to work as factory workers, to get the (emphasis added): sense of ordinary people and how they feel. In my days we "The NCCCUSA shall continue and strengthen its efforts went to the rural areas in the summer and we used to go to to promote peace, justice, and participatory democracy for the factory for survey. At that time the government was not all Koreans as a fu ndamental aspect of reunification.... cooperative, but did not prevent. Now, it is impossible. So The NCCCUSA shall . . . press for the creation of a nuclear­ the students cover up their identity, just go to the factories, free zone in North East Asia. The NCCCUSA calls upon the say I went to elementary school, can I work here? They work United States Governmentto affirmform ally that it is a policy for a short period to get the sense of it, and to get the connec­ goal of the United States to support the peaceful reunification tions to labor. of Korea. The NCCCUSA urges the! United States Govern­ "It is well-organized. In many industrialized areas, you ment . . . to withdraw from commanding the U.N. peace­ will see workers and students living together, sharing the keeping operation at the Demilitarized Zone in Korea in favor emotions. Some people say it is the v narod movement. There of mutually acceptable neutral nations." is a Russian word, v narod. It means in English, 'Let's go to We leave it to the reader to answer the question: Who the people. ' In seminars it was introduced." benefits?

EIR July 3, 1987 International 49 Northern Flank by Goran Haglund

Perle wrecks U.S.-Norway relations adversaries were unable to do in dam­ The former Assistant Secretary of Defense is spearheading an aging U.S, anti-submarine defenses. While insisting that Kongsberg's effo rt to alienate staunch u.s. allies. On whose behalf! technology leaks to the Russians are not to be downplayed, having dam­ aged Norwegian security interests to the same degree as those of the United States, prO-American circles in Nor­ T he transfer of militarily sensitive Secretary of State George Shultz and way are distressed at the hostile intent computer technologies to the Soviets Defense Secretary Caspar Weinberger of declarations such as Perle's. by the Norwegian state-owned arms in April and May. Weinberger, during In a June 24 editorial in the con­ company Kongsberg Vapenfabrikk his May 12-15 visit to Norway, ex­ servative daily Ajtenposten, Perle was and the Japanese high-technology firm pressed his appreciation of Norwegian pointedly rebuked. Citing his procla­ Toshiba is being exploited by the actions. mation in U.S. News & World Report, "Mossad lobby" in the United States. But outrage over Norway and Ja­ the Oslo daily noted that "the agitated Led by former Assistant Secretary of pan's violations of the COCOM trade sentiment prevailing in certain Amer­ Defense Richard Perle, the Mossad restrictions, intersecting an anti-Jap­ ican circles is damaging the trust which lobby is trying to divert attention from anese protectionist mood and calls for each alliance must build upon. Even its own role in betraying U.S. secrets trade war legislation, continued to after the Kongsberg scandal , there and to disrupt U. S. relations with Eu­ build in the U.S. Congress. While the must be room for the good cooperation rope and Japan, viewed by the Mossad administration has pressed for enforc­ that will guarantee our national secu­ as unwanted rivals for U.S. strategic ing better cooperation and resisted rity." benevolence. sanctions against Norway and Japan , But it is precisely such U.S.-Eu­ The Norwegian and Japanese leaks the House of Representatives voted ropean cooperation that the Mossad of sensitive technologies was raised overwhelmingly in mid-June to de­ lobby is out to damage, in its zeal to by the United States at a January meet­ mand compensation, and Sen. Jake make Israel appear as the foremost ing in Paris of the COCOM organiza­ Gam, according to the New York U.S. ally. Technology leakage to the tion, founded in 1951 by NATO and Times, suggested that "we ought to Russians does not bother the Mossad. Japan to supervise East-West trade really hurt Toshiba." Where was Perle's big mouth when policies. Under false pretenses, Such attitudes toward U.S. allies Jonathan Pollard's systematic betray­ Kongsberg and Toshiba shipped com­ have long been championed by Rich­ al of U. S. military and intelligence puterized propeller-milling equip­ ard Perle, who was forced out of the secrets to Israel was blown, secrets in ment to the Russians that will enable Defense Department partly as a result many cases passed on to Moscow? The them to manufacture silent-running of his attempt to bum all bridges to Mossad network activated its assets in submarine propellers. After realizing Europe . An agent of those Israeli the press, the State Department, and the extent of the damage caused by the Mossad networks implicated in the elsewhere to suppress every key fe a­ high-technology transfers to the So­ Iran-Contra affair, Perle was rehired ture of the case, just as it had protected viets by Kongsberg Vapenfabrikk, the by Shultz, as a consultant to the State Pollard throughout his espionage ca­ Norwegian governmentmoved to pre­ Department ! Along with his Mossad reer. vent a repetition of the violations of crony and former deputy at Defense, In 1970, Perle, then an aide to Sen. the COCOM rules. Stephen Bryen, now promoted as di­ Henry Jackson on the Senate Armed The Oslo governmentlaunched an rector of the DoD's Technology Services Committee, had himself been investigation into possible further vi­ Transfer Branch, Perle has spearhead­ caught red-handed spying for Israel. olations by Kongsberg, and an­ ed the attacks on Kongsberg and To­ A wiretap of the Israeli embassy in nounced a toughening of the Norwe­ shiba. Washington, D.C., ordered by the gian law, to be implemented in con­ In a U.S. News & World Report National Security Council, revealed sultation with U.S. experts. article , Perle seconded congressional that Perle was passing classified infor­ Norwegian Prime Minister Gro calls for sanctions against the Norwe­ mation to the embassy. Despite some Harlem Brundtland and Defense Min­ gians and the Japanese, proclaiming protest, the power of the Mossad ma­ ister Johan JjljrgenHolst briefed U.S. that U.S. allies have done what U.S. chine protected Perle at that time.

50 International EIR July 3, 1987 Report from Bonn by Rainer Apel

Illusions of a Franco-German defense diplomats, including Ambassador to The so-called "post-Reykjavik process" is like a Pandora's box, Bonn Richard Burt, pressured Kohl to give in on the "Europeanization of de­ fr om which one evil aft er the other emerges . fense." Statements by the outgoing NATO C-in-C in Europe, Gen . Ber­ nard Rogers, leaked in recent discus­ sions with influential newspapers in T he propaganda for the "zero op­ "European security union" based on Europe and the United States, con­ tion" and "security partnership" with Franco-German defense cooperation. firmedthat the Reagan administration the Soviet Union, a deal cut between Schmidt and Giscard have pointed has left no stone unturned to coerce West Germany and Gorbachov' s Rus­ to the "unfinished agenda" of the European governments into "support­ sia in the era of perestroika, has been Franco-German Treaty of Jan. 22, ing an INF agreement that would followed by yet another version-the 1963. As today, the threat of U. S. dis­ crown the career of the U.S. Presi­ idea that a merger between the armed engagement was haunting Europe in dent." The price of this crown on Rea­ forces of France and West Germany the early 1960's. But the strategic sit­ gan's head would be the exposure of would suffice to defend Europe against uation of the West toward the Soviets Europe to absolute Soviet military su­ Soviet aggression. was much better in 1963, when premacy, warnedRogers . Prominent decouplers, like Ger­ France's President Charles de Gaulle Much attention has been paid to man ex-chancellor Helmut Schmidt and West Germany's Chancellor Kon­ his statements in Paris and Bonn, as and French ex-President Valery Gis­ rad Adenauer launched their vision of well as to parallel warnings issued by card d'Estaing, have campaigned for a Franco-German alliance for Euro­ U.S. presidential candidate Lyndon a "Franco-German defense alliance," pean defense. H.LaRouche in

EIR July 3, 1987 International 51 Andean Report by Val erie Rush

Irregular warfare in Venezuela with Rangel, stemming from his visit Fomenting tensions between Venezuela and Colombia is but one to the U.S.S.R. the previous year. piece of the Soviet/Project Democracy scenario. Joining Rangel's accusations against Colombia was the Venezuelan congressman and Gnostic bishop Walter Marquez, who claimed that Colombian troops have already vio­ lated Venezuelan sovereignty, cross­ T he June 12 murders of one army Western Europe. ing the borderon numerous occasions officerand eight Venezuelan soldiers, The gameplan is that of Moscow to assassinate peasants and commit who were in the process of disman­ and its "New Yalta" accomplices in other atrocities. Marquez announced tling a cocaine refininglaboratory and the West. The aim is to drag theUnited that he was calling on "the high mili­ eradicating coca and marijuana crops States into a new and more horrible tary command and the defense minis­ in Sierra de Perija, on the border with "Vietnam," this time in Central and ter to explain to the Congress what the Colombia, marks a new phase in the South America. situation in the country is ...." irregular warfare that the Soviets and The fomenting of war between One is obliged to question why it their murderous counterparts in the Colombia and Venezuela would be but is that neither Rangel nor Marquez West have unleashed against the na­ one piece of the scenario, in which make any mention of the narco-terror­ tion-states of the region. right-wing coups coul�.. create the cli­ ist ambush of a Colombian army pa­ A commando force of an estimat­ mate for communist-im"pired revolu­ trol in Caqueta province, the same ed 100 well-armed Colombian narco­ tions. week as the Venezuelan incident, in terrorists swept down on the unsus­ Former Venezuelan presidential which not 9 but 32 soldiers lost their pecting Venezuelan troops-most of candidate of the left Jose Vicente Ran­ lives. One must also ask why it is that them asleep-and took their bloody gel, an old defender of Soviet terror­ neither Rangel nor Marquez identify toll. ism, moved quickly to blame the Co­ the real forces in Colombia who are The narco-terrorists reportedly' lombian government and armedfo rces allied with the drugma fia,such as pro­ claimed to be members of the Cuban­ for permitting the assaults against drug legaliziltion senator Samper Pi­ trained National Liberation Army Venezuela: zano or his anti-extradition colleague (ELN) , which has been financed by "There is nothing strange in the SantofimioBotero? Occidental Petroleum in Colombia, so­ fact that the Colombian military ap­ The situation could become much called "protection money" for their proves the setting up of the guerrillas worse in the coming weeks, given the exploration operations. Occidental, of on our border, to create problems for apparent de1K:rmination of the Vene­ course, is the property of Moscow us and serve as an element of pressure zuelan armed forces-enraged by the agent Armand Hammer. in seeking an arrangement of the so­ June 12 ambush, which is considered It is not entirely surprising to learn called 'diferendo' (border dis­ the bloodiest foreign assault on Ven­ that Henry Kissinger's Center for pute) ....There appears to be a tacit ezuelan troopssince the wars of inde­ Strategic and International Studies agreement between the Colombian pendence-to violently respond to any (CSIS), produced a scenario for the armed forces and the guerrillas of that new borderincidents . U.S. army several years back, in which country," declared Rangel, provoking According to local sources, the Venezuela asks for U.S. troops fol­ an angry response from the Colombi­ narco-terrorist army operating along lowing a cross-border attack by Co­ an ambassador in Caracas, who de­ the border has, with help from Cuba lombian guerrillas on Venezuelan oil­ scribed Rangel's comments as "irre­ and Nicaragua, acquired sophisticated fields. sponsible. " weaponry (including land-to-air mis­ The scenario appeared in a CSIS Just one week earlier, Rangel had siles), to the tune of $350 million.· study entitled, "Strategic Require­ visited Cuba, and was received by Without a Colombia-Venezuela pact ments for the Year 2000 ," which of­ high-level government authorities. The to jointly combat the narco-terrorists fers a long list of military conflictsthat May issue of the Soviet publication in a wide swathe of territory on both could break out in Ibero-America, to America Latinacarried a lengthy in­ sides of the border, the situation could justify withdrawal of U.S. troops from terview on "Venezuelan perspectives" become highly volatile.

52 International EIR July 3, 1987 Report from Rio by Silvia Palacios

Brazil is not a 'republiquette' Folha de Sao Paulo June 22. The Brazilian military is reluctant to follow Henry Kissinger's In the face of such an explosive Jornal orders that Brazil submit to IMF discipline. situation, the oligarchy's daily do Brasil June 20 warned there is a strong currentin the government which wants to imitate Peru, limiting debt payments to a percentage of exports. President Jose Sarney is having d!)Henrique Cardoso, the ruling Bra­ Whether or not that is true, it reveals trouble winning political and military zilian Democratic Movement Party's the big fight for development cata­ support for his decision to put Brazil leader in the Senate. He had conversed lyzed by Dilson Funaro, the minister under International Monetary Fund with Kissinger during a dinner offered who declared a moratorium on most (IMF) surveillance. Sarney argued by Henry's best friend in Brazil, busi­ of Brazil's debt$ on Feb. 20. June 17, "I must tell you that the Fund nessman Israel Klabin. Bresser, on the Brazil's negotiators tried to scare also changed. Therefore, we talked other hand, spent the whole dinner ob­ the Paris Club with a Funaro presiden­ with the Fund without fearing for our sessively seeking to win the Kissinger cy in order to squeeze some "conces­ national interest." Finance Minister seal of approval. He went so far as to sion" out of the creditors. If 30 pieces Luiz Carlos Bresser Pereira is running make public for the first time his am­ of silver could not be obtained for hav­ around trying to forge a new consen­ bitious plan to convert $7 billion of ing abandoned Funaro's principled sus of political elites for a formal debt paper into ownership of Brazilian position that "the debtor nations must agreement with the IMF. companies. rescue their dignity," then Bresser However, few will swallow the In real terms, Brazil will not now would not be able to win the domestic monstrous fraud which Bresser and his be saved from financial collapse either credibility he desperately needs. If newest ally, Henry Kissinger, are by the unlikely possibility that its debt Bresser's social democrats could not trying. Sen. Jamil Haddad charged that were renegotiated or by any kind of show their subservient policy toward Bresser's austerity policy was evi­ agreement with the IMF. Brazil has the bankers paid off, the negotiators dence that "Brazil once again will pay asked the World Bank and foreign argued, the cr¢ditors would have to out $12 to $13 billion per year for governmentexport-import banks who face the "more, radical" position rep­ servicing the foreign debt, at the ex­ make up "the Paris Club" to extend resented by Funaro and his nationalist penseof its population." He noted how the due dates of debts to them which movement. Bresser's plan coincided with the ar­ were set to be paid starting the end of Kissinger's, fireworks in favor of rival of Kissinger and an IMF delega­ June. The Club answered, "Okay; but the IMF boomeranged. "That guy is tion. go to the IMF." Thus, well-informed thinking we are a republiquette," army As soon as he arrived in Brazil circles here comment that Brazil will Minister Gen. , Le6nidas Pires Gon­ June 18, Kissinger opined that Brazil make some IMF agreement around the �alves, told a friend, insider journalist might get "new money," if it again time of the IMF annual meeting in late Castello Branco reports. The power­ plays by the rules of the collapsing September. In the meantime, it may ful chief of BIjlzil' s military was an­ international finance system, as dic­ ask for bridge loans from the U.S. gered by Kissinger's interrogating him tated by the IMF. In offering new Federal Reserve and the Bank for In­ about how mu�h influence he has on money, Kissinger, the political ternational Settlements to be able to President Sarney and what he does spokesman and adviser for Rockefel­ continue making those debt payments when the President does not follow his ler's banks, is dangling before Brazil not subject to the Feb. 20 moratorium. advice. "Nothing, he's the President," what the officialrepr esentatives of the Bresser's austerity program is fac­ the general told Kissinger. He later banks are, so far, refusing. But things ing sharp opposition. "If there is any told his friend, �'He doesn't realize that did not go well for Kissinger. consensus in this country, it is on the after 20 years of power, the Brazilian "What I told Kissinger is that I need to keep the economy growing at armed forces realize that while we may have experience with what is going on rates which permit a significant in­ be able to solve short-term problems, in Argentina, and I think the surveil­ crease in per capita income," count­ we cannot permanently solve national lance which the IMF applies there is ered his predecessor, Dilson Funaro, questions. We want democra­ not in our interest," said Sen. Fernan- in an interview published in the daily cy ...."

EIR July 3, 1987 International 53 Report from Rome by Stefania Sacchi

The 'Germanization' of Italy grammatic element in these last elec­ The "ecologist" form of subversion made large gains, not at the tions, people abandoned themselves to "protest votes." Thus while some expense of the Reds, but of Italian society. pockets of resistance to disintegration were rewarded, such as the personal success of Christian Democrat Maria Pia Garavaglia, publicly supported by the Schiller Institute and the Anti-Drug Coalition for her firm position on AIDS, the general trend was toward negative votes. Some voted for the T he election of 13 deputies and 2 gram, with only one and a half nuclear Christian Democracy to be against senators of the Italian Green Party may plants still running today , the hysteria former Socialist Premier Craxi: others perhaps be the most significant out­ stirred up in Italy goes even beyond picked the Socialist Party to show their come of the June 14 Italian elections: that of Germany. opposition to Christian Democratic the deliberately orchestrated flaunting Contrary to first impressions and party head Ciriaco De Mita; workers of a process of disintegration of the television disinformation, the Greens in the industrial suburbs of the North republic's institutions and the destruc­ did not gain votes at the expense ofthe are leaving' the Communist Party, tion of the ethical and scientificvalues Communist Party , but at the expense which has left them defenseless against which led to Italy's creation as a na­ of all the parties, with a substantial the economic crisis. tion. percentage of fascist and youth votes. In this context, we had the spec­ The Greens now control about 50 It is the institutional infiltration of the tacle of Hungarian prostitute "Cic­ parliamentarians, with about 20 elect­ Green offspring of the Red subversion ciolina," elected on the Radical ticket, ed as "independents" on the Commu­ of past decades, with some examples marching victoriously with the Greens nist Partysla te , and others in the So­ of biological heredity: The daughter against the fo undations of Italy's mor­ cialist Party, Radical Party, and Pro­ of the historic ultraleft leader of the al and scientific tradition. The Cic­ letarian Democracy lists. If one adds Communist Party Pietro Ingrao, Ren­ ciolina phenomenon is a case of "so­ that the "ecologist" and anti-nuclear ata, is now supposed to become the cial engineering, " a modem version of ideology has infiltrated Parliament in secretary of the Environment League. the gnostic.i.occultist phenomena of force, controlling a majority of the The former leader of the commu­ which history is fu ll , run by the mass seats, we have an approximate but nist grouplet Continuing Struggle, media. The Greens, with Langher's striking view of the subversion under Qaddafi sympathizer Alexander slogan, "Be ethical, not scientific," are way. Langher, took a significant 4.6% of the anti-scientific and anti-ethical What Chicco Testa, former chief the votes in the Trentino-Alto Adige counterpart , to Cicciolina's obsceni­ of the Communist Party-controlled region. Another Continuing Struggle ties. Environment League, had promised comrade, Marco Boato, has become But this institutional nadir was before the elections has taken place: an Italian senator with Green, Social­ brought on by the leaders of the so­ the "Germanization" of Italy. ist, and Radical votes. called institutional parties. Uncon­ Exploiting the Chemobyl acci­ If we add to the Greens the myriad tested, Bettino Craxi sang hosannas to dent, with the hysteria created in the of slates of tiny regional, ethnic, or his "economic boom," repeating an population by the manipulation of ac­ single-issue parties, even those who Italian version of the idiotic refrain of ceptable radioactivity levels (lowered did not make it into Parliament, we the American President on the "recov­ for the occasion), the "ecologist" have a complete picture of the process ery" which never existed. Only three bombardment every day in the news­ of disintegration which the news­ days afterthe vote, the trade statistics papers and, above all, on television, weekly Espresso gleefully described for May documented a collape of ex­ reproduced in Italy the "New Dark as reflecting "post-industrial Italy," ports, i. e., of industrial production. Ages" phenomenon which is the Ger­ "neither right nor left . . . doubtless a It is no suprise that the Italian man Green Party. more modem Italy." Greens celebrated their electoral vic­ Worse yet, given the virtual no­ Given the absolute lack, and we tory, as Espresso reports, with red nexistence of an Italian nuclear pro- underline the word absolute, of a pro- champagne.

54 International EIR July 3, 1987 From New Delhi by Susan Maitra

Haryana: dangerous portent separate Punjabi-speaking Sikh-ma­ The Devi Lal victory over the Congress (I) Partymay send jority state. Haryana, earliei a part of Punjab, became a Hindu-majority state Punjab into a new spiral of chaos. in the process. As the terrorist Khalistan move­ ment mushroomed out of control dur­ ing the 1980s, this fight took on a men­ acing communal undertone. Blaming the Congress (I) for propitiating the Sikhs became a staple in Haryana. Even the term rout doesn't seem ad­ Contrary to reports in the West, Just a month before the elections, equate for what took place in the June Haryana is not the crucial "Hindi Punjab Was put under President's Rule 17 Haryana elections, when the arro­ heartland," where the fate of the Con­ again, removing the elected govern­ gant peasant mafioso Devi Lars fac­ gress Party is signed and sealed; that ment headed by Surjit Singh Barnala, tion of the Lok Dal (People's Party) distinction goes to the neighboring an aide of slain Akali leader Sant Lon­ defeated the Congress (I), which had state of Uttar Pradesh. Haryana is the gowal. Persisting factional fighting been in power in the state since 1982. land of affluent and tough Jat farmers, among the Akalili had compromised In a 90-member assembly, with who formed the shock troops for the the Bamala government's ability to act elections for 87 seats, the Congress (I) rich farmers' party, the Lok Dal. against the terrorists. The action was could secure only 5. Chief Minister In recent years, Haryana has be­ widely viewed, bowever, as a Con­ Bansi Lal, former Union Minister of come better known as the home of the gress (I) election move to counter the Railways and chief minister of the state three Lals-the defeated Chief Min­ Lok Dal charge that the Congress (I) in the 1970s when Haryana made dra­ ister Bansi Lal , his fellow Congress­ is "soft" on Punjab. matic economic gains, was himself man and rival Bhaj an Lal, and Devi The last-minute award of addi­ defeated by 2, 100 votes. Of his 17- Lal . The fierce and shifting rivalries tional water to Haryanaby the govern­ member cabinet, there was only one (and alliances) among these three men ment commission charged with find­ survivor. Nor was it a close fight. Op­ have largely determined politics in the ing a solution to the river waters dis­ position candidates won by margins state for the past 10 years. This time pute, also fell flat. ranging from 1 ,000 to 30,000 votes. around, it was Lal versus Lal versus The Punjab accord was unaccept­ It was a defeat for the Congress Lal-a three-way fight even though able, Chief Minister Devi Lal said, (I), but projections of the Rajiv Gan­ two Lals are fellow Congress-men. because it was reached with only one dhi government's imminent demise This fact, together with the stalemate faction of the Aknli Dal. Devi Lal re­ that abound here are undoubtedly pre­ in Punjab, was used to full advantage called that it had been possible to reach mature . The Haryana defeat is surely by the wily and vengeful Devi Lal to understandings in the 1970s when the a serious blow to the Congress (I), and crush his erstwhile proteges. Akali Dal was led by ,Parkash Singh even a warning of sorts. But its most It isn't surprising that Punjab was Badal and G.S. Tohra. far-reaching impact is more likely to at the top of Devi Lars campaign, to­ Indeed, it is tl;leBa dal-Tohra com­ be to throw a new monkey wrench into gether with a vow to forgive all farm bine that has been playing a dirty game efforts to resolve the Punjab crisis. debt up to Rs. 20,000 (about $1,600) in Punjab, for the past two years at One day after his swearing-in as and a promise to approve all claims least, to sabotage the accord, and in Haryana's chief minister, Devi Lal for pension benefits. Far more than the particular, to overthrow the elected announced his categorical rejection of recent scandals in Delhi, the issue in Barnalagovernment . Their opportun­ the Punjab accord, the basis for a po­ Haryana is land and water-and that ism and inflammatory rhetoric is a litical settlement in Punjab, arrived at means Punjab. The two states have matter of record; their active collabo­ by Prime Minister Rajiv Gandhi and been at loggerheads over distribution ration with the pro-Khalistani terror­ the late Sant Longowal in July 1985. of river waters and exchange of terri­ ists has been widely suspected. The accord made it possible to restore tory since they were partitioned in Devi Lal alsp announced that he an elected government and begin re­ 1966, in the wake of a successful cam­ will make independent arrangements viving the political process obliterated paign by the Sikh political party, the with Punjab onc� a new popular gov­ by terrorism. Akali Dal, to establish Punjab as a ernment is electedthere .

EIR July 3, 1987 International 55 International Intelligence

The minister is in a quandary. Top Israelidoctor Wiesenthalfinds no Like Surgeon General C. Everett Koop in the United States, she is an advocate of blasts euthanasia policy proof against Wa ldh eim the "safe sex and condoms" approach, which tirelessly maintains that AIDS is not a spe­ The head of the Israeli Medical Association, Austrian "Nazi hunter" Simon Wiesenthal cies-threatening epidemic, but a disease Ram Ishai, has attacked the practice of eu­ has attacked the World Jewish Congress for which can only be transmitted by sexual thanasia, especially in the case of Holland, its behavior in the affair of Austrian Presi­ contact. and warns that euthanasia may increasingly dent Kurt Waldheim, who has been banned Yet when the Alpes-Maritimes depart­ be justified "to avoid economic burdens on from entering the United States on the basis ment (regional government)of France tried society." of charges that he was a Nazi. Writing in to set up a confidential data bank on AIDS In Holland, II of the 90 AIDS sufferers Italy's newspaper of record, Corriere della carriers, it used the precedent of a 1983 law Sera, who have died, were victims of "mercy­ June 23, Wiesenthal reprimands the which allowed local governments to carry killing." WJC for "putting collectively under accu­ out testing for venereal disease. The minis­ In an op-ed in the June 17 Jerusalem sation all Austrians. How can a Jewish or­ ter, who opposessuch measures, hit the roof. Post, Ishai reports on an April 1987 lecture ganization," he asks, "formulate a collec­ "The fightagainst the human immuno-defi­ in Amsterdam by Dr. Sven Danner, head of tive threat against a whole people? The wave ciency virus is not among those tasks which the AIDS Unit at Amsterdam's Academic of anti-Semitism was a consequence of this were entrusted to the department by the de­ Medical Center. Danner presented statistics threat, and the WJC has given arguments to centralization laws," she told Le Point. which indicated that "one in eight deaths the anti-Semites." "AIDS is not a venereal disease!" from [AIDS) was due to euthanasia." In As far as Kurt Waldheim's alleged Nazi Secretary of State for Health Edmond many cases, these were patients who, with­ past, said Wiesenthal, "I am interested in Herve in 1985 created a working group to out question, "could have lived months be­ the truth, and I want to know the truth, and provide " help for the dying," whose report, fore dying." this truth has not come out yet." published in October 1986 by Barzach, en­ Writes Ishai: "Most religions, and es­ The U.S. Office of Special Investiga­ visaged the creation of hospices for AIDS pecially the Jewish religion, relate to every tions, as in many other instances, used only victims. killing per se, regardless of whether it con­ Soviet-concocted "evidence" to get Wal­ cerns a young, elderly, healthy or sick, or dheim declared persona non grata in the even a dying person. In the Mishna: 'One United States. Soviets said to build who is in a dying condition is regarded as a The strange thing about the Waldheim living person in all respects. ' This is also the affair, is that no one has proved Waldheim giant laser fa cility opinion of the Babylonian Talmud, and also guilty of anything, Italy's La Stampa daily the code of Maimonides, which prohibits commented June 23. Only Simon Wiesen­ U.S. intelligence agencies are watching with any action that might hasten death .... thaI, according to the paper, has actually concernas the Soviets build what appears to "Therefore , one can say, along with looked into relevant archival material, in­ be agia nt laser facility near the Afghanistan Britain's Chief Rabbi Immanuel Jakobov­ cluding documents on the Nazi period at the border, the Chicago Tribune reported June its, that: 'Any form of active euthanasia is Berlin Documentation Center, at the United 22. Speculation centers on whether the So­ strictly prohibited and condemned as plain Nations archives, at the Ludwigsburg ar­ viets are 'building an advanced anti-satellite murder,' and passive euthanasia as well, chives in West Germany, and at the Bel­ weapon Or merely a laser "research" facility. when it is performed on a person who may grade, Yugoslavia Historical Archives. In The secret installation is 30 miles south­ live further weeks or months, as was the all cases, the result was the same: He found west of Dushanbe, the capital of the socialist case with the Dutch AIDS patients. nothing. republic of Tadzhikstan. It was firstspotted "Moreover, in present-day conditions, by U.S. reconnaissance satellites several euthanasia could be performed to avoid eco­ French minister: AIDS years ago. There has been no public com­ nomic burdens on society. If there is not ment, but many in the U. S. intelligence sufficientprovision of nursing care, we will is no venereal disease community believethat the Soviets may have witness an increase in euthanasia cases in begundeployment of the world's firstoper­ the near future. It is a slippery slope and we French Minister of Health Michele Barzach ational ground-based anti-satellite system. can easily pass from the case of a patient affirmed, in an interview published in the The just-releasedJane 's Military Com­ dying from cancer in unbearable suffering June 15 issue of Le Point magazine, that it munications Annual Review notes that "re­ to cases of the very aged sick, the crippled, is "medically inaccurate" to describe AIDS cent photos taken near the Afghan border and the mentally ill." as a Sexually Transmitted Disease. suggests the Soviets' laser capabilities may

56 International EIR July 3, 1987 Briefly

• ISRAEL has granted visas to a exceed anything so far achieved by Western ings. Czechoslovakia, since the suppression Soviet delegation for the first time directed energy programs." of "Prague Spring" in 1968 , has had one of since the rupture of diplomatic rela­ the most ruthless and hardline East bloc re­ tions 20 years ago. The Soviet dele­ gimes. But with different winds now blow­ gation, led by the deputy director of ing from Moscow, Central Committee Sec­ Wa rsaw Pact vows aid the consular department of the Soviet retary and chief ideologue Vasil Bilak has foreign ministry, will discuss the em­ to U. S. against terrorism come out recently with statements in favor igration to Israel of Russian Jews and of perestroika-Gorbachov's "transforma­ the property of the Russian Orthodox Warsaw Pact nations are showing "their first tion" of society and the economy . signs of joining the West's war against ter­ Church in Jerusalem. rorism," if you believe a June 19 report in • CARDINAL JAIME SIN of the the Wall Street Journal, citing State Depart­ New political, military ment officials. "State Department counter­ Philippines has been granted permis­ terrorism official Alvin Adams made a re­ deals link China, Mideast sion to visit Lithuania during his up­ coming stay in the Soviet Union. This cent tour of East Europeancountries and the is a favor which Moscow has denied administration now is exchanging informa­ A wide-ranging series of secret and public tion on anti-terrorist techniques, devices and deals is currently under way, linking the Pope John Paul II. specificcases with Warsaw Pact countries," People's Republic of China with Israel, Iran, said the Journal. and Turkey . • 300 WEST GERMAN Commu­ Although Reagan administration offi­ Israel is secretly sending military tech­ nists, Greens, and Social Democrats cials cannot yet cite any concrete help, they nicians to Peking, to refit and modernize conducted a three-week tour of the say that East Europeans are talking and act­ hundreds of Soviet-made tanks and heavy Soviet UniQIl during the month of ing more cooperatively, professing that they artillery for the Chinese army, according to June . want to help fight terrorism. In return, the the June 19 Times of London. "China is now United States has decided not to publish a one of iran' s principal arms suppliers in the • GERM�NS visiting Moscow re­ White Paper on Palestinian terroristAbu N i­ Gulf War, selling Soviet-made equipment cently for a seminar were surprised at dal, which suggests, based on a classified to the Iranian army . . . . Israeli sources say the "pre-war mood" they found there . CIA report, that he has found refuge or as­ that the secret mission to China has been in Josef Riedmiller, first deputy editor­ sistance from six of the Soviet Union's East operation for well over a year, as relations in-chief of SUddeutsche Zeitung. European allies. between the two countries-who have no wrotes: "I was astonished ...some diplomatic representation-grow warmer." Russians even spoke of a 'pre-war The visits to Peking of Iran's Foreign situation . ' " Czechoslovakia starts Minister Valayati and Deputy Foreign Min­ ister Sheikolislam in May and June led to • YUGOSLAVIA can "easily turn its own 'glasnost' drive agreements including for Chinese construc­ into another Lebanon," according to tion of four munitions factories inside Iran, the Yugoslav Communist Party In Bratislava, Czechoslovakia, a "sensa­ Iranian oil exports to China, and Chinese newspaper Borba . On the eve of a tional" trial has been opened against Stan­ launching of a satellite to be used by Iran to Central Committee Plenum to dis­ islav Babinskii, chairman of the state-owned transmit "guidance programs" to the Gulf. cuss ethnic tensions in Kosovo prov­ consumer goods trading firm "Jednota" in A group of Chinese Muslims has been sent ince . Borba said that the persecution Northern Slovakia, and II other defen­ to Qom for training, and Beijing requested of non-Albanians there could lead to dants . This is one of the biggest corruption the help of Islamic scholars to train its Mus­ an explosion. scandals in the history of the Czechoslovak lim community ! Socialist Republic, according to the West In June, Iran signed a $2 billion deal • PROTESTANT CHURCH German magazine Der Sp iegel. with Turkey, involving constructionof a new sources in West Germany report a The list of Babinskii's customers, for pipe line and joint oil exploration compa­ growing pattern of members leaving whom he ran a prostitution ring, among oth­ nies, Iran's export of natural gas to Turkey, the church, after themid-June Church er illegal activities, includes almost the whole and development of a joint petrochemical Congress of the German Evangelical government of Slovakia, as well as Foreign industry . Iran also agreed to guarantee that Church in Frankfurt, at which pro­ Minister Bohuslav Chnoupek. Kurdish rebels will only attack Iraq, and not Soviet and pro-witchcraft sentiments The trial is open to the pUblic, but the Turkey . A joint "border security commit­ predominated . media are keeping silent about the proceed- tee" was established between.

EIR July 3, 1987 International 57 �TImNational

Weld plot against defense set back as GD case ends by Kathleen Klenetsky

The Justice Department's abrupt announcement June 19 that In announcing its exoneration of Beggs and his co-indic­ it had dropped all criminal charges in the Sgt. York case tees on all charges, the Justice Department was forced not against defense contractor General Dynamics and four com­ only to concede that it had built its case on the flimsiest of pany executives, including former NASA administratorJames evidence. It also was forced to reveal a pattern of such colos­ Beggs, has dealt a setback to a conspiracy by top Justice sal incompetence as to raise grave questions as to why the Department officials, notably Number Two man Stephen charges were ever brought at all . Trott and Criminal Division head William Weld, to dismantle 'The government is standing up and saying, we were American defense capabilities through trumped-up charges wrong," a chagrined Weld confessed June 22. He admitted of fraud and corruption. that it is "unusual for the government's view of the facts to As EIR warned in an Aug. 29, 1986 report on Weld's change so radically that the government will abort the pros­ nomination to succeed Trott-who had initiated the case ecution ....Nobody is happy about this." against General Dynamics-the two colleagues planned a "Wrong" just isn't the word for how the Justice Depart­ major escalation of Justice Department "fraud" prosecutions, ment pursued the case. An ilJegal political vendetta which which could bring the defense industry to its knees. That undermined U.S. national security, is a more apt description. operation has now been slowed down-at least temporarily. Weld was forced to disclose that Justice finally decided Just one month ago, the Justice Department was forced to to drop the indictments afterGD presented 82 boxes of Army drop a second case against General Dynamics' Electric Boat and company documents it had obtained under the Freedom Division, again for lack of evidence, and those in Congress of Information Act sustaining its position. The boxes had who have championed Justice's campaign against defense somehow been "inadvertentlyoverlooked ," Weld said. After contractorsare wailing that such prosecutions have now been examining the material, 9 of 10 prosecutors in the case rec­ discredited. ommended dismissal. Sources close to the Defense Department called the ex­ Weld also admitted that prosecutors had waited until aft er oneration of GD a victory for Defense Secretary Caspar the indictment to interview a number of governmentofficials Weinberger, and said it reflects the growing recognition in who were involved in the contract negotiations; and also military and government circles that Mikhail Gorbachov's failed to consult expertson government contractingwho later perestroikapolicy signals a massive, pre-war military build­ said that GD had followed "perfectly permissible" billing up. Weinberger had argued that allowing the Justice Depart­ methods. ment to run amok against the U.S. defense industry-and What Weld did not mention was the history of the case. especially thosecompani es, such as GD, which have critical The indictments, which accused GD and top executives of contributions to make to the Strategic Defense Initiative pro­ having defrauded the goverment through overbilling while it gram-was tantamount to suicide. Weinberger's argument was developing a prototype of the Sgt. York antitank gun, won out, and Justice was forced to terminate its prosecution were put together by the Justice Department's so-called "De­ of GD. fense Procurement Fraud Unit," a part of the Criminal Divi-

58 National EIR July 3, 1987 sion then headed by Trott. was a desire to force James Beggs out of NASA-which But they proved very hard to get. In 1984, the fraud unit contributed directly to the Challenger explosion and the trag­ sent special agent Gary Black to Los Angeles to handle the ic deaths of its crew. Beggs, one of the best administrators grand jury investigation. A year later, Black reported back NASA has ever enjoyed, a man committed to science and that there was no basis for an indictment, and no evidence of technology, an outswken foe of the Club of Rome's neo­ any criminal violations. Rather than conceding there was no malthusian nonsense, was forced by the indictments to take case, the DoJ wasted some more taxpayers' money by send­ a leave of absence just weeks before the Challenger disaster. ing Randy Bellows from the Criminal Division to Los An­ The person who took over, William Graham, was generally geles to revive the case. Reportedly, he orchestrated offers viewed as an incompetent. He had no experience with space of immunity and threats of prosecution towards lower level programs, no experience with managing large programs. For of employees at General Dynamics to contrive the case against these reasons, Beggs had strenuouslyob jected when the White the company and its executive officers. Indictments were House wanted to name Graham to the number two post at finallyhanded down the Monday afterThanksgiving 1985. NASA, but unfortunately, was overruled. Examination of the indictment papers and of the motion The fact that the inexperienced Graham-not Beggs­ to dismiss submitted by lawyers for GO, Beggs and the other was the person calling the shots on that fateful January morn­ defendants show that the governmenthas no case at all. For ing is believed to be one of the key reasons why the Chal­ one thing, the Sgt. York gun program involved a new type of lenger launch failed. Beggs himself has said many times that contract, known as "Firm Fixed Price, Best Effort" contract he would never have permitted the launch on such a cold day. for which there were no governing Armed Services Procure­ The Justice Department's illegal persecution of Beggs ment regulations. Beggs et al. were charged with violating led to the deaths of the Challenger astronauts, and has brought ArmedServices Procurement regulations that did not exist! the U.S. space program to a near stand-still. As a Senate staffer put it, "NASA is bearing the brunt of the 001' s wrong­ Challenger deaths a result? ful smearingof Beggs. " So why did Justice pursue a case that had no basis? Nu­ The resolution of the GO case has brought an avalanche merous observers have correctly noted that the resources of of well-deserved criticism down upon the Justice Depart­ the Justice Department are such that it couldn't be chalked ment, both from those who supported Weld's and Trott's up to mere incompetence. As one Senate staffer put it, "Usu­ vendetta against the defense industry, and are angry their ally when a federal grand jury hands down an indictment, a mishandling may jeopardize future prosecutions, and those conviction is almost guaranteed. The fact that the Justice who opposed it. "I really feel aggrieved on this. I was left Department's case was so flawedhas raised a lot of questions. hanging out to dry," James Beggs said June 21. "I feel the Some people have tossed around the possibility of a conspir­ grand jury system is no longer a check on the prosecutors." acy to get" James Beggs and the defense industry. Beggs's lawyer, Vincent Fuller, said the Justice Department As noted above, Trott and Weld are part of a conspiracy "ran amok" in the case. to destroy U.S. defenses. Both men have myriad ties into The June 23 Wall Street Journal called the indictments a factions which want to cut a deal with Moscow, even if that "case of waste, fraud and prosecutorial abuse," and said the means destroying the United States. EIR has previously doc­ "witch hunt" against Beggs may have contributed to the Chal­ umented Weld's ties to Soviet and Chinese intelligence, and lenger tragedy. to Swiss banking interestes involved in drug-money launder­ The Washington Post expressed similar sentiments in its ing. Trott shares a similar background, and participated in a editorial the next day. "It is hard to understand how this case left-wing-oriented folk group. Both men had vowed to make was brought in the first place. Who in the Justice and Defense prosecution of defense "fraud" their number one priority. Departments, we wonder, was in charge of reading the doc­ In a June 21 press conference, Beggs contended the in­ uments at issue before going to a grand jury? How do prose­ dictment was brought because "there is strong political mo­ cutors go so badly off the track? ..Us ually prosecutors tivation to go after defense contractors these days." come under fire for not being tough enough, for not aggres­ During his confirmationhearings in August 1986, Weld, sively going after alleged wrongdoers and seeking the heav­ who had already compiled an extensive record of defense­ iest penalties. But this and other recent cases also point up industry persecution while serving as U.S. Attorney in Mas­ the perils of reacting too quickly to public pressures. When sachusetts, promised the Senate Judiciary Committee he indictments are dismissed or juries quickly acquit, innocent would "take personal responsibility" for "vigorous enforce­ lives, as well as prosecuter's reputations, have been dam­ ment in the area of defense procurmenet fraud." Weld said aged." that "white collar and public corruptionare !1lyprivate agenda Criticism is not sufficient, however. A thorough investi­ items," and called for new positions of Assistant U . S. Attor­ gation of the Justice Department's prosecutorial abuses, in ney for Defense Fraud to be created in every U.S Attorney's this and other politically motivated cases-those against office. Lyndon H. LaRouche, rocket scientist Arthur Rudolph, and A second motivating factor behind the DoJ's vendetta others-is what is needed now.

EIR July 3, 1987 National 59 they play to this day. At these 1982-83 confrontations with the OSI, a startled Rudolph was told that if he did not voluntarily renounce his U.S. citizenship, and leave the United States, he woudl be subjected to deportation hearings. Rudolph was told by that the OSI had compiled a list of witnesses who had swornthey saw Rudolph commit atrocities during the war. The OSI refused to divulge either the identity of these purported wit­ nesses, or their alleged testimony. Faced with this judicial assault, and with insufficient funds to mount a competent legal defense, the 77-year-old OSI hoax exposed: Rudolph chose to leave the United States in March 1984, afteragreeing with the OSI to give up his citizenship in return the Rudolph travesty for a guaranteed pension. Immediately after Rudolph's forced denaturalization be­ came public, several Department of Justice officials, includ­ by Joseph Brewda ing OSI director Neil Sher, and former OSI director Allan Ryan, appeared repeatedly on national TV and throughout Shocking new evidence has emerged to further confirm EIR ' s the V.S. press, condemning Rudolph as a "Nazi," and "mur­ repeated charge that the U,S. Justice Department's Office of derer." Naturally enough, OSI formulations mimicked the Special Investigations (OSI), is a witting KGB tool, treason­ statements pouring out of Soviet propaganda outlets at the ously operating against V. S. national security interests. New time. details on the OSI witchhunt aginst Dr. ArthurRudolph abun­ But for all the OSI's rantings, it never had any evidence dantly demonstrate that this is the case. for its claims. In the spring of 1984, Dr. Rudolph, a retired NASA physicist, was confronted by the OSI with the charge that he The OSl hoax was a Nazi war criminal. Rudolph, the designer of the Persh­ Upon Rudolph's arrival in West Germany, the Central ing I missile and Saturn rocket, is a hero of the V. S. space Office of State Judicial Administration began a formal inves­ program, and was then a consultant to a group of physicists tigation of the OSI charges that Rudolph was a war criminal. working on the Strategic Defense Initiative and other essen­ The Central Office, directed by Attorney General Alfred tial military research programs. It has since been overwhelm­ Streim, has oversight over Nazi war crime prosecutions in ingly proven that the OSI case against Rudolph was a gigan­ Germany. Streim reviewed Central Office files andfound not tic, witting hoax, from beginning to end, and that the OSI's even a mention of Rudolph. Streim also requested that the intent was to cripple the Strategic Defense Initiative (SDI). OSI forward to his office the list of purported witnesses it had Moreover, a three-year exhaustive study of the OSI's against Rudolph, such that his investigation could be com­ claims against Rudolph, by two West German prosecutorial pleted. Curiously, the heretofore aggressive OSI delayed agencies, which was concluded March 1987, further proves forwarding its OSI file to Germany for a year, in unusual and that OSI director Neil Sher, Assistant AttorneyGeneral Mark direct violation of the U.S.-West German bilateral treaty Richard, and Associate Attorney General Stephen S. Trott, governing such judicial cooperation. clearly violated U.S. law on behalf of this Soviet objective. By the time the OSI had apparently complied with the The mere fact that these three gentlemen were not summarily Central Office's request, sending what it purported to be a fired and prosecuted, after the West German government complete file on Rudolph, Streim concluded his thorough concluded its investigation, is, in itself, a demonstration of search for any information implicating Rudolph, and finding the strength of Soviet intelligence networks within the U.S. none, closed the investigation. Justice Department. Following the conclusion of the Central Office investi­ Beginning in 1982, Dr. Rudolph was confronted by an gation, the Hamburg state prosecutor's office began its own OS! team led by Eli Rosenbaum, since employed by the pro­ investigation of Rudolph, led by prosecutor Peter Beck. Soviet WorldJewis h Congress, and was charged with having Beck's office spent three years exhaustively examining the participated in war crimes. Rudolph had been a civilian sci­ Rudolph case, closing its investigation last March. Beck's entist employed in the construction of V -2 rockets at the investigation proved that there was not a shred of evidence Mittelwerk facility during the war. After the war, Rudolph against Rudolph. It also demonstrated, by implication, that and several of his associates, such as Dr. Wernhervon Braun, the OSI, and Justice Department officialsSher, Richard, and emigrated to the United States, where they became the sci­ Trott were guilty of malicious prosecution, obstruction of entificcore of the U.S. missile program, and NASA-a role justice, and abuse of office.

60 National EIR July 3, 1987 The witting nature of the as!' s fraudulent case against itary research. While the first OSI tbreat to Rudolph was Rudolph is glaringly revealed by its so-called witness list, made in 1982, it was only after President Reagan's March which the OSI had used to bully Dr. Rudolph out of the 23, 1983 speech announcing the SDI program, that the Soviet country. operation within the U.S. Justice Department and State De­ When the Hamburg prosecutor received the OSI witness partment began in earnest. list, after a year's delay, it discovered that OS!'s claim to According to well-placed intelligence sources, on July have a case against Rudolph was nothing but a Goering-style 15, 1983, the U.S. State Department sent a diplomatic note "Big Lie." This OSI list contained the names of fiveindivid­ to its embassy in East Berlin, numbered 433, which ordered uals from the United States and four from Israel. All of these embassy personnel to meet with the East German government "witnesses" reported that they did not even know Rudolph to secure all documents it had on Rudolph, for the use of the during the war, or, if they knew him, that they had no evi­ OSI. During this same period, the U.S. government was dence against him! Some of the alleged witnesses even ac­ being subjected to wild Warsaw Pact propaganda attacks for knowledged that they had never worked at the Mittelwerk its SOl program. All correspondence and documents relating facility where Rudolph had been exclusively employed. to this collaboration were removed by the OSI prior to its Lest they be accused of lack of diligence, the Hamburg sending an allegedly complete file to West Germany. prosecutors continued ahead on their own investigation, de­ Yet while the OSI was collaborating with East German spite the proof that the OSI charge was a complete fraud. agencies on framing up Rudolph, it refrainedfrom even ask­ Between 1984 and 1987, the Hamburg prosecutors pored ing the West German government to assistit on the case. over the testimony of over 300 witnesses made at previous In 1983, the Assistant Secretary of State for European trials relating to alleged war crimes at the facility Rudolph and Canadian Affairs, under whose aegis the diplomatic note worked. Not one witness, in several thousand pages of testi­ 433 would have been sent, was Richard Burt, now U.S. mony, even mentioned Rudolph. ambassador to West Germany. Burt has led the effort to The prosecutors then interrogatedsome 60 witnesses who "decouple" West Germany from the United States, and dis­ had worked at Mittelwerk. Only one witness had any accu­ member NATO. It is Burt and his cothinkers at the State sations against Rudolph, a Soviet citizen named Roman Kor­ Department who are also the key U. S. proponents of the so­ neyev. Korenyev had previously been quoted in an April 9, called zero option, which would strip WesternEurope of its 1984 issue of the Soviet publication New Times. which was nuclear defense. The Gestapo-modeled persecution of Dr. devoted to attacking Rudolph, the SDI. and the Pershing Rudolph, the effort to decouple the United States fromNATO, missile as "Nazi." and the attack against the SOl representone coherent Soviet This Korneyev, while curiously accurate on such details intelligence deployment. about Rudolph as his middle name, made a series of factually Upon the West German government's clearing Rudolph incorrect statements on the work site which no one who was of the chargesagainst him, and granting him citizenship, the familiar with the facility could have made. Moreover, even OSI, and its collaborators, such as the World Jewish Con­ Korneyev ultimately confessed thathe never witnessed any gress, predictably went into a fitagrupst Germany. "A man atrocities committed by Rudolph, but simply speculated that who should be put on trialwinds up wiihcitizenship instead," Rudolph was responsible for various crimes. World Jewish Congress executive director Elan Steinberg Additionally, the West German prosecutors found many ridiculously whined, and accused the West German govern­ witnesses, in the United States, as well as Germany, who had ment of "a shocking distortion of justice." Meanwhile, the known Rudolph at Mittelwerk, and were willing to testify OSI coldly announced that regardless of the West German positively on his behalf. decision, Arthur Rudolph would continue to be on a U.S. "watch list," and barred from entering the United States, Further OSI cover-up because of his "war crimes!" When the OSI belatedly forwarded its Rudolph fileto the Congressman Bill Green (R-N.Y:) introduced a bill into West German government, it was assumed that the file was Congress shortly afterthe West Germanac tion, which called neither doctored or incomplete. It has since been proven that for revoking Rudolph's Distinguished ServiceMedal , which the OSI systematically removed from its filesany indication he had earned for designing the Saturn rocket, because of that it had been collaborating with the East German govern­ Rudolph's "crimes." Green is also, notably, one of the most ment on the Rudolph case. The OSI still lies that it did not violent opponents of the · SDI in the Congress, and has re­ work with the East German government on the case. peatedly denounced all U.S. funding for the x-ray laser. No However, investigations have determined that the hoax doubt neither Mark Richard, nor Neil Sher, nor Greenhave targeting Rudolph began in August 1981, when Allan Ryan, voiced any objection to Moscow's recent launching of the then OSI director, and his assistant Neil Sher, visited East l00-ton super-rocket, Energia, into space. Berlin. The purpose of that meeting was to target former That rocket, modeled on Rudolph's Saturn, has put Mos­ German scientists then working in the United States on mil- cow's own SDI into firstpla ce.

EIR July 3, 1987 National 61 Elephants and Donkeys by Kathleen Klenetsky

containment, as its top foreign policy the 1984 [Democratic presidential] priority. debate, we were decidedly anti-de­ This has cut tremendously into the fense and isolationist. That's changed party's traditional base of support, said now," he claimed. Aronson, and unless the party is will­ And Sam Nunn-who is expected ing to change, it will continue its los­ to throw his hat into the ring afterIowa ing streak. and New Hampshire-said a lot of The same concerns were the focus Democratic positions "are too far out of a another important party meeting for the average voter." held in Atlanta June 22. It was spon­ sored by the Democratic Leadership Council (DLC), formed in 1984 by The big joke Dems search for "centrist" elements of the party who It seems that some Democratic big­ thought they could avoid a replay of wigs have finallyfigured out that pres­ conservative ima e g Mondale's wipe-out by giving the par­ idential candidates and party pro­ The Democratic leadership is desper­ ty a more conservative face. grams which toe the Moscow line on ately scrambling to finda presidential The DLC has been the drjving defense, and the views of the no­ candidate free of the ultra-liberal taint force behind the Super Tuesday pri­ growth fanatics on the economy, sim­ which led to the party's defeats in 1980 mary March 8, where Democratic vot­ ply don't hold water with the average and 1984. Needless to say, it won't be ers in 20 states, 14 of them in the South, American. easy. Every one even considering run­ will go to the polls. The real question now is what they ning is on record pushing policies bor­ The idea behind Super Tuesday intend to do about it. And here lies the dering on treason. was to give greater weight to the rub, The hopes of the DLC and other This was the central focus of a Southern-and more conservative­ centrists are pinned on Sam Nunn. strategy meeting which the Eastern Democratic voters . This supposedly Why? Because he's supposedly pro­ Regional Caucus of the Democratic would help nominate a candidate who defense. That's as big a joke as hear­ National Committee held in Washing­ would have a better chance of getting ing Manatt-who, in 1984, steered ton in mid-June. Caucus chairman elected. the party in�o a grotesque propitiation Lanny J. Davis delivered a blunt mes­ DLC director AI From told atten­ of Moscow-promote a strong de­ sage to the 100 party activists: The dees that the group is "trying to pro­ fe nse. Democratic Party has a rotten image vide a counterpoint to pressures aris­ Nunn has certainly tried to make among the public, especially on na­ ing out of Iowa," where liberal organ­ himselflook like a serious-minded na­ tional security issues. The most dam­ izations, like the UA W, exercise tight tional security specialist. But once his aging popular perception, said Davis, control over the caucus process "that record gets out, the DLC will have a is that the Democrats are soft on de­ if unchecked, will create a leftward tilt hard time selling him as such. fense and unconcerned about the So­ in the Democratic defense agenda." After all, it was Nunn who pro­ viet threat. In addition, he said, the Former DNC chairman Chuck posed the withdrawal of U.S. troops population believes that the Demo­ Manatt proclaimed, "It's a different from Western Europe back in 1984- crats are anti-business and thus anti­ Mr. Wonderful we're looking for now. a move which would have handed Eu­ growth. Super Tuesday has caused us to look rope to the Soviet Union. BernardAron son, a former speech­ more for someone progressive, centr­ Nunn has gotten worse as 1988 writer for Jimmy Carter, amplifiedthe ist-someone strong on defense, for draws closer. This spring, he led the anti-defense theme . Whereas in the example." fight in Congress to retain the so-called 1940s and 1950s, and even under This theme was reiterated by near­ "narrow interpretation" of the ABM President John Kennedy, the Demo­ ly every speaker. Chuck Robb, the Treaty, which would cripple the SOL crats were active interventionists who former Virginia governor who, with He has also fought consistently for de­ held that Soviet expansionism repre­ Sen. Sam Nunn (D-Ga.), founded the fense-budget cuts. sented the greatest threat, today the DLC, told the 400-plus attendees, How the Democrats intend to party says the greatest threatis the arms "We're looking for mainstream ap­ package this as "pro-defense" is the race, and puts arms control, rather than proaches to the issues. If you look at challenge of the century .

62 National EIR July 3 , 1987 year o�eCONSTITUTION .� The 'LaRouche case': the bankruptcy seizure that wasn't one

Federal agents who seized the offices of three publishing In September 1986, Weld became head of the Criminal concerns run by friends of Lyndon LaRouche in Leesburg, Division at the Justice Department, and there followed the Virginia last April, ostensibly as part of a forced bankruptcy largest police raid in American history, on the offices of proceeding, appear instead to have been seeking information LaRouche associates in Virginia. The most to emerge from relevant to a Boston criminal proceeding, not inventorying that 400-man, armored personnel carrier assault on the town property for bankruptcy liquidation. If so, the "bankruptcy of Leesburg was a few indictments for credit card fraud and raid" constituted a blatant violation of the rights of criminal­ "obstruction of justice" in the federal case, plus a series of defendant "LaRouche companies" and their officers. The state indictments, some representing double jeopardy in re­ criminal case must be thrown out. spect to the federal case. After millions of dollars and reams This conclusion inescapably emerges from a 45-minute of newspaper copy charging "the LaRouche organization" videotape of the Virginia bankruptcy raid, a videotape made with something criminal, Weld and friends were going to by federal agents themselves. Agents are overheard speaking look ridiculous in courtback in Boston. of "valuable information"-irrelevant to any bankruptcy sei­ However, to recallJudge David Mazzone's $16.5 million zure of real property . fine:That was under appeal. Nevertheless, Weld and friends The videotaped statements of the federal agents are cited determined to use the fineto complete their witchhunt prior in a "Supplemental Memorandum of Defendants in Support to trial. They proclaimed the federal government, under terms of 'Motion to Stay Bankruptcy Proceeding or in the Alter­ of the Mazzone fine, the "creditor" of the defendant compa­ native to Dismiss the Instant Case .• " The memorandum was nies, obtained an order in secret turningthe defendant-com­ filedon June 15 in federal courtin Boston, in the case United panies over to federal bankruptcytrustees (in their zeal, over­ States of America v. The LaRouche Campign, et ai., by looking even the requirements stipulated in the bankruptcy attorneys for The LaRouche Campaign, four other political law), and thereupon, forced the defendants into Chapter 7 and corporate organizations, and numerous individual defen­ involuntary bankruptcy. A raid shutting down the defendant dants. The earlier motion to dismiss had asked that the case companies CD!, Campaigner, and Fusion Energy, followed in Boston be thrown out because the bankrupting of the de­ on April 21 , 1987. fendant companies violated their 4th, 5th, and 6th Amend­ Thus, three corporatedefendants in criminal proceedings ment rights as defendants, or that the bankruptcy proceeding are being forced out of existence by the prosecutor in the bevoided to preserve those rights. The supplemental motion, proceeding-before they can come to trial-the prosecutor introducing the videotape evidence for the first time, makes acting in his self-proclaimed capacity as "creditor" of the clear that the criminal case must be thrown out, regardless of defendants. Equally astounding fromthe standpoint of con­ determinationsin the bankruptcy proceeding. stitutional law, the "creditor," that is, the "prosecutor," The related criminal and bankruptcy proceedings stem thereby came into possession of all legal documents relating from the most extraordinary law-enforcement action in Jus­ to the intended defense in Boston, inasmuch as the closed tice Department history. At the end of the 1984 election offices included the legal officesfor the joint defense of those campaign period, Boston U.S. Attorney William Weld three and other defendants. launched a political witchhunt against presidential candidate Because of the clear threat to defendants' rights to due Lyndon LaRouche. Despite an 18-month grand jury investi­ process and attorney-client privilege, Judge Robert E. Kee­ gation, no evidence was turnedup of "credit card fraud" or ton promptly threatened to throw the BQston cases out unless other criminal wrongdoing on the part of LaRouche or related the Justice Department successfully showed that it had built individuals and organizations, and no indictments were hand­ a "Chinese wall" between the criminal and bankruptcy ac­ ed down. However, in February 1986, Weld persuaded a tions. Boston judge, David Mazzone, to levy an extraordinary $16.5 But-the videotape cited in the defendants' supplemental million contempt of court fine onthree of the companies memorandum not only indicates that the governmenttook no under investigation, CD!, Inc., Campaigner Publications, care to keep criminal and bankruptcy matters separate. The and the non-profitFusion Energy Foundation. two were one and the same. The videotaped statements of

EIR July 3, 1987 National 63 federal agents overheard during the bankruptcy raid establish ducted the search were "not interested in the contents of any that the raid was conducted to aid the government's criminal paper files" (Affidavitof Richard Reynold, paragraph 3) and prosecutions-not a bankruptcy seizure at all. The raid was that they "had no interest in the papers since paper was not conducted to obtain, for the criminal prosecution, informa­ the sort of thing which was an item of value to the inventory" tion reserved by law for the defense. The bankruptcy action (Affidavit of John F. Clark ,'paragraph 6). by the Justice Department thus constituted an irreversible The videotape of the search which the Government has invasion of attorney-client privilege. provided the defendants casts substantial doubt on the accu­ Excerpts from that supplemental memorandum follow. racy of these representations in the Affidavits of the mar­ shalls. As set out in the [defense] Affidavitof Barbara Boyd, Introduction some Government Agent on the tape is heard during the This memorandum will discuss the necessity for holding search to indicate " ...thirty -five percent of it is valuable an evidentiary hearing on the defendants' Motion to Dismiss information ...(in audible) ...it 's like walking through a based upon the bankruptcy seizure by the Government. As gold mine" (Boyd Affidavit, paragraph 9). In the Traveller's the Government has conceded in its filings, the key factual Building, which was the lCilcation of the legal office, Ms. issues which must be resolved are whether there has been a Boyd sets out that the tape contains the following language breach of the attorney/client relationship between the defen­ by Government Agents: "This is CDF [Constitutional De­ dants and their attorneys as a result of the bankruptcy seizure fense Fund], I know that ...If you have a moment, key in and whether there has been any Government wrongdoing or on this stuff on the bulletin board here . . . income . . . this mis conduct as a result of the seizure. is good." At a later point in the Traveller's Building, Miss The Court has before it a series of Affidavits from the Boyd quotes the tape as recording, "I like this . . . LaRouche Government and a series of Affidavits from the defendants. for President . . . I can see iwhy they didn't want us in here This memorandum will outline the factual disputes which . ..look Fusion [magazine1 subs ...don 't call people who must be resolved by way of evidentiary hearing in order to gave morethan $200.00. . ." All of these quotes suggest that properlydecide what relief, if any, is appropriate pursuant to the marshalls conducting th¢ search were clearly doing more this motion. than inventorying the physical real property in the location. The [defense] Affidavitof Martha Quinde establishes that They were conducting a substantive search of the area to be the area in the Traveller's Building [Leesburg] seized by the seized. Government pursuant to the bankruptcy proceedings con­ Additionally, the content of the videotape indicates that tained a large amount of attorney/client material . The Affi­ the concern of the Government was not simply to inventory davits of Richard Reynold [federal marshall] make it clear real property . As the Court will see when it reviews the tape , that the legal materials were seized by the Government and it is not, as set out in the Government's response, a recording held under its custody or control. This establishes a prima of the inventory method. It instead seems to be an attempt to facie basis for inquiring as to whether the attorney/client preserve substantive evidence as to the operation of the var­ relationship of the defendants was invaded by the Govern­ ious defendants . Throughout the tape , the operator contin­ ment. ually focuses in on blackboards containing substantive infor­ The Government attempts to rebut that prima facie by mation which would be irrelevant to any bankruptcy seizure way of Affidavits which purportto show that the seizure of of real property assets but elXtremely relative to the ongoing legal documents was very narrowly designed to prevent the Government investigation into the financial structure of the Government from having access to any documents, that a defendant organizations. Chinese wall was established between the portions of the A third piece of evidence which undercuts the Govern­ U.S. Government which seized the documents and the por­ ment's claim that the seizure was not seeking substantive tions of the U.S. Governmentwhich are prosecuting this case information is the actions of Special Agent Huff of the Vir­ and that two protective measures were used to guarantee the ginia State Police. He indicates that deputies brought to his integrity of the process; the seizure was videotaped in its attention an organizational qhart of the defendant groups and entirety, and the trustees supervised the seizure. As this address books with names and telephone numbers of what memorandum will set out, there are substantial factual dis­ appear to be contacts of various persons within the Federal putes as to each of the claims made by the Government in Government. He further indicates that he copied those doc­ rebutting the defendants' prima facie case that the attorney/ uments and brought them back to the Virginia Bureau of client relationship was invaded. Criminal Investigation and : prepared an intelligence report which was forwarded to the Criminal Intelligence Division. Factual Disputes as to the Procedure This course of action makes it clear that the marshalls and the Followed in the Bankruptcy Proceeding Virginia State Police were involved in more than simply The Governmentclaims initially that the agents who con- inventorying physical property.

64 National EIR July 3, 1987 Herbert Hoover's vice president? The dilemma facing George Bush

by Paul Goldstein

To the average American voter, the perception that Vice support for Rep. Jack Kemp and the gnostic evangelist Pat President George Bush is a "wimp" is a constant refrain. Robertson. Bush just seems to repeat his loyalty to the policies of Presi­ Most important, Bush is seen by the liberal Republican dent Reagan, never saying much of anything decisive or apparatus, the New England-based banking and insurance substantive for himself. It is Bush's lack of substance which companies, as one of their own-not only a Yale graduate, the voters sense . No doubt the media in the nation's capital but a select member of the secretive "Skull and Bones Soci­ have repeatedly reinforced this view. ety ," a man to be counted on not to betray his family's closest The media have also gone out of their way to implicate friends, and who can be cajoled if necessary to play the the vice president in the Iran-Contra affair. There are facts strategic and financial game by their rules. which support this view. For instance, there are links between Although Bush has extensive ties to his Texas-based con­ Bush's national security adviser, Donald Gregg, and some stituency, especially to the large independent oil producers of the identifiable players in the scandal . However, there is and their banking allies, no one sees this as the primary source much more to even this part of the story than meets the eye. of his political or philosophical outlook. It is just another one Gregg and a select group of advisers, which includes former of George Bush's constituencies, which he services by "mak­ top officials at the CIA, were not only informed about the ing the right kind of political deal." In sum, the vice president activities of NSC renegade Lt . Col . Oliver North and ex-CIA can be considered a conservative version of a Rockefeller operative Felix Rodriguez, but were more involved than the Republican-Nelson, not David. public and Congress have been informed . Although Bush has refused Gregg 's resignation, some in the intelligence com­ The real paradox munity would not be unhappy to see Gregg's departure . Although this thumbnail sketch of some of Bush's polit­ To the broad-based intelligence community, especially ical connections and constituencies sh()ws some contradic­ the Central Intelligence Agency, Bush, once the agency's tions, this is not the core of "the dilemma facing George chief, is considered a skillful executive who not only acted Bush." The real paradox is twofold. Fitst, and most impor­ to preserve a nearly decimated agency-the result of Water­ tant, is the financial and economic crisis facing the United gate and 1970s Senate hearings-but who allowed the "old States and the Western world. boy" apparatus the necessary leeway to save what was leftof Ironically, it was George Bush who first attacked Ronald its capabilities. His relationship to the CIA is one of his most Reagan's "voodoo economics" during the 1980 presidential critical assets in the upcoming election campaign, not , of campaign. The nation, thanks to that "voodoo economics," course , because the CIA will participate in a domestic elec­ is faced with the severest crisis since the 1930s Depression, tion campaign , but rather because of his unique relationship when voters threw Herbert Hoover and his economic policies to the remnants of the "old boy" network outside the official out of office. As Democratic presidential candidate La­ agency, which still maintains a great deal of influence in the Rouche has asked, "Who remembers Herbert Hoover's vice intelligence community . president-and it certainly wasn't Franklin Delano Roose­ To the Republican Party stalwart, Bush is essentially a velt." man who is willing to make political deals to the benefit of Second, Bush's associates and circle of operatives have the local Republican constituency. He does not base himself arrangements with political forces committed to destroying on an ideological outlook, but a "pragmatic" one . This par­ Lyndon LaRouche's presidential campaign, such as the De­ ticular brand of pragmatic conservatism enrages the Reagan­ partment of Justice's Criminal Division chief, William Weld. ite hard-core and its New Right offspring, reflected in their This has created a complex problem from which Bush might

EIR July 3, 1987 National 65 not be able to extricate himself. This dichotomy was confirmed by sources in the U.S. Certain circles around Bush's 1980 presidential cam­ intelligence community. One source told EIR that Bush is a paign know all too well that it was the LaRouche campaign's hard-liner against the Gorbachov glasnost charade, and that attack on the Trilateral Commission and the Eastern Liberal Henry Kissinger's statement following President Reagan's Establishment's ties to Bush which became the decisive mar­ Berlin Wall speech reflects Bush's outlook on that question. gin that enabled Ronald Reagan to beat Bush in the first 1980 Kissinger appeared on ABC's "Good Morning America" to primary in New Hampshire. According to sources working attack Gorbachov' s glasnost as an attempt to make the Soviet for Bush's campaign at the time, he winced more than once Union stronger, not to demqcratize Soviet society. when watching the paid TV political advertisements of the The Bush stance on the issue will become more public as LaRouche campaign, with their unrelenting attack on the the summit between Reagan and Gorbachov draws nearer, Trilaterals: Bush at the time was a member; he belatedly tried according to U.S. intelligence sources. He is also going to to resign. play a prominent role in that summit process. He will be Adding to the complications of his campaign is the fact presented as the "successor" to Reagan, and the continuity of that his finance committee is comprised of peoplewit h exten­ U.S. policy will be firmly established on such things as the sive ties to the "dope lobby." Max Fisher, a Detroit "busi­ Strategic Defense Initiative. These sources stated unequivo­ nessman," is one of the major fundraisers for Bush. In plain cally that Bush and LaRou¢he are the only ones running in language, Fisher is a notorious mobster linked to the old the election who can be counted on to continue the SDI. "PurpleGang ." representing one of the leading forces behind However, EIR has leal1led to be cautious about assess­ the effort to "get LaRouche." Fisher's closest associate , Gor­ ments concerning Mr. Bush. The reason is a matter of know­ don Sachs, a founder of the Republican-Jewish Coalition, ing where some of the skeletons in Mr. Bush's closet lie. has enjoyed intimate ties to Wall Street's Mr. Insider Trad­ Whether these problems belcome a dominant factor in con­ ing, Ivan Boesky. Boesky, convicted for his shenanigans, is taining Mr. Bush's commitments remains to be seen. one of the key figures in the interface between Israeli intelli­ gence and its U.S. intelligence community connections, mu­ The stature of incumbency? tually linked to the legendary mob figure Meyer Lansky's Back in 1983, in late December, this writer received a apparatus. briefingconcerning pr oblems with the President's hellith. At Some cynics within Bush's campaign organization refuse that time, I was told that Bush would likely become President to see this series of complicating problems as a liability for before the fulfillment of Ronald Reagan's second term . This Bush. However, it will be the force of historical circum­ briefingaimed to establish tbe idea that the way George Bush stances centered on the strategic and financial crises which was going to get elected in 1988 was by acquiring the stature will actually determine whether George Bush survives. Can of incumbency. This idea was bandied about during the Pres­ Bush, a Republican, be elected if and when the financialcr isis ident's cancer crisis, inducing those on the "inside" to believe erupts full blown? Without the LaRouche campaign, which that a Bush pre-election presidency was inevitable. Whether is prepared to call for a campaign and governmentof national this was Bush's own idea matters little. The circle of intelli­ unity to save the United States, the only possible successful gence people around Bush were circulating it. That typifies program is "eliminated" from the body politic. the problem. In such circumstances, neither Bush nor his inner circle Too often, a political game based upon intelligence meth­ will have a snowball's chance to survive the campaign, de­ ods or manipulation and deception is played, without any spite the present disarray in the Democratic Party . firmcommitment being madeon policy. Since the inner circle of Bush advisers has ties tOJhe intelligence community, the Public versus private manipulative outlook is endemic to them. For them, that's According to a well informed source in the Bush cam­ "how to play the game ." Thjs is especially infectious among paign apparatus, the vice president presents himself very the career intelligence officers who have latched on to Bush's differently in private than he does in public. At a recent political career. They are habituated to their manipulative campaign fundraiser, Bush's public posture was completely methods of dealing with a crisis, usually resorting to "damage opposite to his private utterances. This source stated that control" or other fallback operations-rather than a substan­ Bush will publicly break with the President after Labor Day tive policy change. when the "official" campaign gets under way. The source Therefore , they have consistently miscalculated on key added that Bush privately considers the debt crisis and a strategic questions. The rea� motive here is their desire not to financial blowout the greatest threat to the United States, and offend the "Establishment" Or the prevailing line within lead­ that while campaigning, he will begin to address this issue. ing circles. What he says, and what he will do exactly, the source did not This is the real dilemma; Bush will have to overcome-a elaborate. However, he made it clear that Bush knows it is a dependency upon those whose outlook and commitments do make-or-break situation. not necessarily reflectthe interests of our nation.

66 National EIR July 3, 1987 Eye on Washington by Nicholas F. Benton

strengthened role of Soviet conven­ threats to Europe, saying the Europe­ tional forces, including the use of new an Union must "bite the bullet" to deal technologies such as "reactive" tank with political and economic problems armor. He said the dangerous trend to maintain the viabilityof the Atlantic toward a nuclear-free Europe will en­ Alliance. courage the Soviets to exploit the po­ Burt said he favored a "greater Eu­ litical environment toward "Finlandi­ ropean defense identity" such as giv­ zation." ing each nation in the alliance a partic­ Perle insults Europe Francois Fillon of the French ular strategic task within the Alliance. Gaullist RPR party, also on the panel, Irving Kristol, editor of the Public at Seminar NATO warned that the zero-option proposal Interest magazine, questioned the Former Assistant Secretary of De­ is a "fast bobsled to a de-nuclearized presence of Canada in the NATO al­ fense Richard Perle hurled a barrage Europe." liance. In fact, he said he could not of insults at European allies of the justify the presence of any of the NATO alliance during a Capitol Hill "smaller nations" in the Alliance. The forum, "NATO in the 1990s: A New 'Zero option a remark was so "off the wall" that even Definition of the Transatlantic Bar­ Burt has forced to denounce it as "ir­ Soviet trick' gain," June 23 . Perle denounced the responsible. " European partners of the Alliance for "The zero-option is a trick by the So­ being unwilling to participate in out­ viets. It is a great mistake to accept in of-area deployments, and to protect its present form," warned Eugene McFarlane says debt NATO's northern and southern flanks. Rostow, former director of the Arms He justified growing American Control and Disarmament Agency is gravest crisis isolationism by pointing at the recent (ACDA), speaking at the "NATO in Former National Security Adviser to cases of military-related high technol­ the 1990s" forum. He said that it is the President Robert McFarlane told ogy transfers to the Soviets from Japan mandatory that the allies remedy the me in an exclusive interview June 23 (the Toshiba case) and Norway. His current situation by negotiating for a that the gravest strategic crisis facing cavalier remark about Norway drew a reduction in INF missiles to equal lev­ the West is not military in nature, but sharp rebuke and demand for an apol­ els, but not to zero, and that this apply is the looming international debt cri­ ogy from Thor Knudsen, a represent­ to missiles based both in Europe and sis. He said if this is not solved, the ative of the Norwegian Conservative Asia. He said that the INF treaty also Soviets' ability to move with impunity Party on the panel. must not be ratifieduntil effectiveac ­ in every major theater through politi­ Perle attacked the Danes for "being cords on ICBMs and defensive weap­ cal and irregular warfaremeans within in bed with the Canadians in expecting ons are also ready. the next three to four years they will . the u.S. to pay all the bills for NATO," Rostow warned that if a "secret be unstoppable. and criticized Europe's own space agenda" of a U.S. disengagement from This comment followed an analy­ program for "squandering resources" Europe lies behind the arms control sis of a number of crisis spots around by engaging in "redundant activities proposals, then this will lead rapidly the globe. He expressed special alarm already being carried out by the U. S." to a breakdown ofthe alliance, as well about exotic new technologies, such Another panelist, West German as of all non-proliferation agreements, as reactive tank armor, that the Soviets Christian Democrat Manfred Abelein, as nations will begin scrambling to put are putting onto the battlefield. "It's lashed out at the Reagan administra­ together their own nuclear defenses as things like that that really trouble you," tion's INF zero-option proposal dur­ best they can. he said. "You look up, and suddenly ing the forum, saying that it "pulls out Rostow said, "Our job is to con­ they have this new capability, and you a key element of the flexibleresp onse, vince our publics, on both sides of the say to yourself, 'Where the hell did and creates extremely negative psy­ Atlantic, that the cold war is still going that come from?' " chological reactions in Europe." He on, that Soviet policy hasn't mel­ However, when asked which he accused Reagan of "forcing strategic lowed and it keeps getting worse." felt was the sing1!e one posing the agreements for the achievement of in­ Richard Burt , U.S. ambassador to greatest strategic threat to the West ternal policies," and warned of the West Germany, delivered his usual right now, he said, "The debt."

EIR July 3, 1987 National 67 Congressional Closeup by Ronald Kokinda

Dole's AIDS bill seeks the National Institutes of Health to that had been introduced in the last to cut costs of dying make all virus serotypes available to Congress, and introduced his bill with Senate Minority Leader Robert Dole qualified researchers; expedite the 233 co-sponsors. Backers are hoping (R-Kan.) and 14 Republican co-spon­ FDA drug approval process; and fund to bring their bills to floor votes as sors introduced the AIDS Act of 1987 AIDS education programs for health­ early as this fall. on June 16, S. 1374, which avoids the care providers and the public. In motivating the bill, DeConcini issue of testing for the AIDS virus, Sen. William Cohen (R-Maine). a expressed horror at the "downward and seeks to lower the cost of caring co-sponsor, said that "AIDS is noth­ mobility" which "the next generation for those dying of AIDS . ing short of a disaster," and that "cur­ may be the first in this century to ex­ "There are some issues we are not rent trends portend that this disease perience." "Since 1970 the real per yet prepared to address," Dole said in could overwhelm our health care sys­ capita income for a young adult has introducing the bill. "Notably left un­ tem." Yet, he and other co-sponsors declined by approximately one-fifth," resolved are those issues relating to are unwilling to back public-health he said. "Even the American dream of testing, confidentiality, and nondis­ measures such as a mass testing pro­ owning one's own home is being crimination. " gram . threatened. " Republicans, in particular, are di­ But balanced budgets do not an vided between those, like Dole, who economic recovery make , and the pro­ emphasize the civil rights of the in­ posed amendment would only create fected, and those who stress the rights Balanced Budget further economic havoc . Supporters of the uninfected, as represented in a amendment introduced who recognize this admit that there bill introduced recently by Sen. Jesse Following President Reagan's call for would "have to be a transition" to a Helms (R-N.C.). a Balanced Budget amendment to the balanced budget. They argue that the One entire section ofDole 's bill is Constitution, Sen. Dennis DeConcini amendment would put teeth back into devoted to cutting the cost of care for (D-Ariz.) in the Senate, and Rep. the Gramm-Rudman-Hollings deficit­ those dying of AIDS, by moving them Charles Stenholm (D-Tex.) in the cutting effort. into home rather than hospital care. House, introduced identical bills to this Throughout the debate on AIDS, Dole effecton June 17. has continually referred to budget The DeConcini-Stenholm bill, constraints. "Our bill is based on what Sen. Joint Res. 161 and House Joint P roxmire attacks we know to date about how our re­ Res. 321, incorporates two new pro­ push for megabanks sources can best be spent," is his fa­ visions. First, it would require that the Senate Banking Committee chairman \ vorite refrain. President and the Congress reach Sen. William Proxmire (D-Wis.) at­ "One particular area where edu­ agreement on a single revenue esti­ tacked plans to consolidate American cation could do a great deal of good," mate . Second , even though Congress banking into the hands of a few large Dole said, "would be in helping these could decide to create a deficit, and banks, in a Senate floor speech on June [health-care 1 providers understand the similarly increase the debt limit, by a 16 entitled. "Why America Doesn't value of non-institutional care. In the three-fifths vote in both House and Need Fewer and Bigger Banks." case of many afflicted with AIDS, the Senate, this proposal provides for re­ "This country does not need just a most appropriate and humane site of payment of any such deficitin the fol­ few megabanks . We do not need big­ care is the home rather than the hos­ lowing year. ger banks," Proxmire said. "No one pital." Funds are providedto states to In 1982 the House blocked a Bal­ can convince this senator that we can encourage home-based care. anced Budget amendment, and in 1986 secure more competition if we reduce The Dole bill would declare AIDS the Senate defeated Sen. Joint Res. the number of banks and concentrate a public-health emergency; establish 225 by one vote (two-thirds being re­ most of our financialresources in nine an international AIDS data bank quired for passage). Stenholm said that megabanks. Fewer banks means less through the National Library of Med­ the new approach was designed to un­ competition. Yes, the big banks would icine, and a virus and serum bank in ite two slightly different approaches be fatter, in fact much fatter. But would

68 National EIR July 3, 1987 they be more efficient?Not on the ba­ trophe. The lack of airline safety is beth Dole recently decided to request sis of the record ." one of the major legacies of airline an additional $5 1.5 million for FY88 Proxmire pointed to the fact that deregulation, and of the 1981 air traf­ for 955 more air traffic controllers. "our biggest banks have been among ficcontr ollers' strike, which led to the The Department of Transportation had our weakest performers by the mea­ sacking of thousands of skilled con" been claiming that there was adequate sure of the free market." Continental trollers . personnel for safety purposes. Illinois had to be bailed out, and Bank Lautenberg said that the May 13 of America "discovered that there is a recommendations of the National difference between bigness and suc­ Transportation Safety Board (NTSB) cess." included that the Federal Aviation Proxmire said Treasury Undersec­ Administration (FAA) act to reduce Congress votes funds retary George Gould, an advocate of the number of arrivals and departures for 'Project Democracy' the megabank concept, "represents big at certain airports . He emphasized that Rep. John Conyers (D-Mich.) offered money and big business at its very big­ the NTSB labeled this a "Class I, Ur­ an amendment to the Department of gest." Nine of the 10 largest mergers gent Action." State Authorization bill, to delete in history took place last year, "but to "The NTSB is flashing the red funding for the National Endowment Mr. Gould, the merger business is lag­ light. It's ringing the alarm. The for Democracy (NED), the overt side ging." Now, "Gould would like Con­ warning could not be any louder," of the "Project Democracy" secret gress to promptly bring on nationwide Lautenberg warned. "Class I, Urgent government-but the amendment branching, permit banks to get into the Action is the category the Board re­ went down to a 310-91 defeat on June same securities, insurance, real estate serves for its. highest priority con­ 18. businesses that have been denied cerns. It means that ...an accident "We need now to bring an end to American banks during the 50 years can occur at any time, unless preven­ the privatization of foreign policy, be­ of the Glass-Steagall Act," Proxmire tive action is taken." He added that cause it is a prescription for confusion said. "But that is not enough. Gould even control sectors which control and failure," Conyers said. "The NED also would like to push our biggest planes in mid-journey cannot handle takes upon itselfto fund foreign polit­ commercial and industrial firms into the load. "We face the risk of a cata­ ical groups, foreign organizations, or­ banking." strophic midair collision," he said. ganizations for which we have little or "Just think of it," Proxmire Lautenberg said that the NTSB . no information, and groups that could warned. "In this country, very big "found that what ails the air trafficsys­ embarrass our government and have banks are not allowed to fail. . . . Does tem cannot be cured this summer with embarrassed our government and made this mean the federal governmentwill new technology, more runways, or it the subject of puzzlement and ridi­ bail out Sears Roebuck and its banking additional controller candidates." "The cule. " subsidiary or American Express or issue isn't whether the air traffic sys­ Conyers complained, "We now Ford or General Motors?" tem is foundering. It is. The issue isn't have a covert division of NED in which whether we can rebuild the system," we have secret grantees that cannot Lautenberg said, "We can. But we even be revealed, to the Oversight can't overcome the effects of the 1981 Committee for audit." At the time of strike and deregulation overnight." In the oversight hearings, "88% of the Airline safety : its May 13 report, the NTSB also grants from the NED was going to the victim of deregulation blamed deregulation for inordinate organizations who were represented Sen. Frank Lautenberg (D-N.J.), the flight delays. on its board." chairman of the Appropriations Sub­ The air traffic system is currently Fewer than a dozen Republicans committee on Transportation, intro­ being revamped and upgraded­ voted against NED this time, a fact duced S. Res. 230 on June 10, which roughly a $16 billion program-but which one Hill source attributed to the seeks to reduce air-traffic volume this has been subject to several delays. desire of the GOP to circle the wagons summer in an effort to avoid a catas- Transportation Secretary Eliza- around the embattled President.

EIR July 3, 1987 National 69 or

NationalNews

Iished a full-page article, "The Modem-Day eign Intelligence Advisory Board to hoke up Death Ray," by former Cable News Net­ a criminal prosecution against LaRouche's work correspondent Chuck de Caro . "RF associates. Weinberger rips Zbig's weapons can blow out computers, radios Ridgeway reports the irony that, "Dur­ and anything else using microchips-leav­ ing the early 1980s, while LaRouche was troop pull-out plan ing the weapon, vehicle or device useless," unaccountably being welcomed at the CIA Defense Secretary Caspar Weinberger, in a he writes. and National Security Council as a purveyor commentary published on June 23 in the . The article quotes biophysicist James of intelligence . . . the FBI thought that he Washington Post, denounced former Na­ Fraser, who says that radio-frequency might have been a representative of a hostile tional Security Adviser Zbigniew Brzezin­ weapons are easy to construct, have enor­ intelligence agency, and were seeking ways ski's argument that the United States should mous power, and could be"truck-size" soon. to prosecute him." redeploy 100,000troops out· of WesternEu­ Fraser spent I 0 years researching the bio­ rope to the Persian Gulf. "It is the very pres­ logical effects of electromagnetic radiation ence of our forces in NATO Europe that has for the Air Force, and proposed a battlefield ensured stability there and allowed critics to RF system years ago. "You could make an call it the 'least likely' threat area," Wein­ antenna that could be carriedby a helicopter Grand jury abuses and this could be expected to produce a wide bergerwrote. "Remove that strength and it laid to Justice Dept. becomes the 'most likely' area to be at­ variety of symptoms by humans who hap­ tacked. pened to be standing in the beam," he told "Ninety-nine percent of the time the grand "I doubt that a troop withdrawal would the Post. jury brings back the indictment on the counts increase Europeans' incentives to do more "Many scientists ...believe that such that the prosecutor wants because he is able for their own defense," he wrote . "It would technology is well within the realm of off­ to control and manipulate the grand jury ," convey a signal that the United States be­ the-shelf reality and could be made into a according to Lennox S. Hinds, a Manhattan lieved the Soviet threat in Europe was di­ truck-sized tactical system within a year," lawyer who is chairman of the criminal jus­ minishing. It could only reinforce existing the Post concludes. tice department at Rutgers University. Hinds pressures to cut back on defense expendi­ was quoted in a June 23 New York Times tures. article by E.R. Shipp. "Brzezinski's pronouncement that The Justice Departmenthas recently been NATO has now condemned itself to the sta­ forced to drop indictments against former tus of 'regional alliance' is curious. NATO Village Voice: LaRouche NASA administrator James Beggs, while has always been a regional alliance, former Labor Secretary Ray Donovan was avowedly and by treaty. This, while regret­ target of FBI vendetta acquitted by ajury of the corruption charges table, is understandable, but it does not pre­ In an unusual departure from the left-liberal filed against him. clude cooperative effort in the Persian Gulf media's customary lying coverage of Lyn­ Shipp reports the arguments of the de­ nor prevent us from continuing to work to­ don LaRouche, Village Voice columnist fe nse lawyers in the Donovan case, that ward a greater share of responsibilities in James Ridgeway on June 30 described the Bronx, New York District Attorney Mario the Gulf region by individual allies. FBI's unconstitutional campaign against Merola "had manipulated the grand jury into ' "To talk ofweakening Europe's conven­ LaRouche and associates, as revealed in pre­ bringing the charges to gamer publicity for tional strength at a time when we are about trial motions filed by the defendants in the himself." Also quoted by Shipp is New to remove part of Europe's nuclear deter­ ongoing federal case in Boston, U.S. v. The York's Chief Judge Sol Wachtler: "A grand rence seems to me to court the worst kind of LaRoucheCampai gn, et al. jury would indict 'a ham sandwich' if asked danger." The article is titled, "Col . North, Do to do so by a prosecutor. " You Have a License for Your Minkey?" It characterizes the government's actions as the work of "White House amateurs" run­ ning dirty tricks reminiscent of the bumbling Washington Post covers film characterInspector Clouseau portrayed Bill would boost status by actor Peter Sellers. radio weapon 'zap gap' Quoting from documents obtained of independent counsel AfterE1R broke the story of Soviet advances through the Freedom of Information Act A Senate governmental affairs subcommit­ in radio-frequency weapons, other U.S. (FOIA) and filed by the defendants, Ridge­ tee has approved a bill to strengthen the law publications have begun to pursue this crit­ way compares the unconstitutional actions governing the status of an independent ical line of investigation into the technology of Lt. Col. Oliver North's Irangate.network counsel, and make it permanent, reported that could make nuclear weapons obsolete. to the FBI's collaboration with Henry Kis­ the Washington Post on June 23. The nine­ The Washington Post on June 21 pub- singer and members of the President's For- member committee was polled by letter, aft-

70 National EIR July 3, 1987 Briefly

• LYNDON LAROUCHE arrived inRochester, NewHampshire on June 26, for his firstspeaking engagement there in the campaign for the 1988 er the Justice Department had attacked the ers said he now accepted an arms-control presidential nomination. LaRouche system of appointing special prosecutors . agreement as "inevitable," but a mistake. is a native of thestate . Organizers for According to an incomplete tally , the legis­ He said NATO could resist a Russian attack the LaRouche Democratic Campaign lation was endorsed 6-1 . for "days, not weeks ," without nucleararms. have been active in New.Hampshire The Justice Department and other Iran­ NATO must resist "sliding any further down for several months, building support gate principals are highly critical of Inde­ the slope of denuclearization," he said, and for the candidate's programs on pendent Counsel Lawrence Walsh, whose called for a halt in new nuclear disarmament AIDS, defense, and the economy. investigation of the Iran-Contra scandal is negotiations while "we look at the long-term leaving no stone unturned. implications for Western Europe ." "I'm • TOP REPUBLICAN officials, The new bill includes a provision to pro­ convinced the Soviet Union is going for the including Sen. Robert Dole (Kan.), tect an independent counsel from being re­ denuclearization of Europe ," Rogers said, metwith President Reagan in mid­ moved if he refuses to obey a presidential adding that it would leave Western Europe June to communicate theiropposition order, if the order "would compromise the vulnerable to "intimidation and blackmail" to the zero-option arms-control deal, independence" of the investigation. Anoth­ from the Warsaw Pact's superior conven­ according to. U.S. intelligence er fea:ture would make past records of inde­ tional forces. sources. They reportedlytold Reagan pendent counsel investigations available un­ • To the Frankfurter Allgemeine Zei­ that there is a bloc of congressional der the Freedom of Information Act. tung June 24: The zero option is "a severe votes opposed to the deal . flaw in security policy" that will expose Western Europe to Soviet blackmail. "The • MS. MAGAZINE has named day will come, that the Soviet Union will Lyndon LaRouche numberone on its test our will somewhere-in northern Nor­ list of the 15 "dumbest" men in General Rogers, Shultz way, maybe, in easternTurk ey, in Hamburg America. Founded by Gloria Stei­ or in Berlin, just to probe our reaction to nem and others, Ms. is a platform for clash on zero option that ." radical lesbian-feminists and other Following a series of outspoken criticisms perversions. LaRouche, described as of the proposed "zero-option" arms-control "an extremistfor all seasons who can't deal by outgoing NATO Supreme Com­ tell his left from his right," is fol­ mander Gen. Bernard Rogers, Secretary of lowed by Gary Hart. Number three is State George Shultz denounced Rogers as Pentagon raises budget Ronald Reagan . "way out of line" and called his statements "ridiculous" and "entirely incorrect." In re­ for superconductivity • A JUDGE in Fresno, California marksmade during a visit to Australia, Shultz The Defense Department has increased its ordered his courtroom closed June 19 charged that Rogers had been in Europe too budget for research on the new principles of for the arraignment of a woman, long to know what was going on in Wash­ superconductivity,from $3 million to $12.5 charged with prostitution, who was ington, and said, "General Rogers can put million. The program will concentrate on diagnosed as positive for AIDS-Re­ that in his pipe and smoke it." developing new materials. lated Complex. She has been accused Rogers left his NATO post on June 25 , The AirForce has already developed and of willfully spreadinga disease. Dur­ to be replaced by Gen. John Galvin. tested a very lightweight high-power-den­ ing the hearing, bailiffs wore rubber The attack from Shultz did not silence sity superconducting generator to provide gloves, and the defendant a surgical Rogers, who proceeded to give the follow­ electrical power for an airborne laser. Pro­ . mask. "It's my courtroom," said the ing interviews, among others: viding that the new superconductors can be judge, "and I have to protect the pub­ • To the Times of London June 19: 'The made radiation insensitive, the size of a nu­ lic." cardinal principle under which we operate clear submarine could be cut at least in half at SHAPE [Supreme Headquarters , Allied while doubling its speed, according to a re­ • THE HOUSE adopted a $1 tril­ Powers Europe] is: accept no agreement port to the Congress. lion budget for FY88, which calls for which impacts on the credibility of our de­ Meanwhile physicists from the Univer­ $19.3 billion in new taxes and freezes terrent. And the fact is, that zero INF does sity of Houston and the University of Cali­ defense spending at near-current lev­ reduce the credibility of our deterrent. . . . fornia at Berkeley reported that they have els, unless the Presidentagrees to fur­ I just think that we have moved too damned developedmaterials showing signs of being ther tax increases. The vote was 215- fast without projecting forward what the superconductors of electricity near room 20 I, with only 3 Republicans voting consequences will be , and I think the United temperature . They told an international con­ for the budget, while 34 Democrats States has put too much pressure on the al­ ference in Berkeley on June 23 that they opposed it. The President has threat­ lies to get an agreement for agreement' s have solid evidence that some materials lose ened to veto any budget which raises sake ." all resistance to electricity in the range of taxes. • To the New York Times June 24: Rog- 65°F.

EIR July 3, 1987 National 71 Editorial

Independencefr om economic ruin

America goes into its July 4 celebrations with many chief task of perestroika is acceleration." complex problems, and its survival as a nation very Gorbachov finished by calling for "an in-depth, tru­ much an open question. Presidential candidate Lyndon ly revolutionary transformation ....Now we are en­ LaRouche went into New Hampshire on June 26, and tering the most difficultphase . . . the phase of practical told the press that these could effectively be reduced to action ....Nobody can stand aside in this process. a single problem: Will the United States of America Everyone must be involved." continue to drift into a "post-industrial society"? Gorbachov blasted "conservative bureaucratic The "post-industrial society" policies of five suc­ methods of economic management ....We are ac­ cessive Presidents since Johnson's 1966 turn have placed tually in the first wave of restructuring. This wave has America, internationally, on the verge of strategic ca­ sent ripples through stagnant water." pitulation to the Soviet Union and the worst financial Among the 307 Central Committeemembers listen­ crash in history, and domestically, in a deepening mo­ ing, nodding his approval, was Marshal Nikolai Ogar­ rass of Sodom and Gommorah . kov , architect of the Soviet buildup for war against the The United States is "on its way to becoming anoth­ West. er Hong Kong, a coolie-labor service economy in which The officials of the U.S. State Department are trying everybody's serving hamburgers to each other," stated to deny that this means war build-up. "Instead of ad­ the candidate. You can't have a strong defense when mitting that the Russians are man-eating tigers , they you are letting your industry rot away . "The United are trying to portray them as peace-loving vegetarians ," States today could not defend itself from a small coun� as LaRouche aptly put it in New Hampshire. try like Cuba if it took more than three months. We'd The Soviets have a goal . They have a war plan, run out of ammunition." which is their economic reform plan. Ogarkov is giving LaRouche spoke of the way Roosevelt's 1939-44 lectures about this. The Soviets figure they have about recovery worked, a crash program to produce so that a four to five years to run their war economy before it war could be fought and won. "We can do it again," collapses, because they are running everything at fu ll LaRouche stated, without going to war. "It's not magic . speed and running it into the ground . Ogarkov knows Americans have inventiveness." that 1991-92 is the limit, when they either get the United "But if you go to the President and say, there is no States to surrender or go to war. Ogarkov won't start a recovery, he says, 'Doomsayers ! Get away from me ! " war until they are ready , and they are not ready yet. Not so in Russia, where , one day before LaRouche That gives the United States a short three to four spoke, Gorbachov unveiled a "revolutionary" econom­ years to turn around the decay of our economy, before ic reform to put the Soviet war economy on a "crash we send up the white flag and renounce the indepen­ program" basis . In their own, less inventive way, the dence, not just of the United States but of every free Soviets are now doing what the Americans did in 1939- country , and end the aspirations to independence of 44. nations such as Poland. Gorbachov addressed the Central Committee plen­ LaRouche has thrown out the challenge in New um June 26, and outlined plans for a "radical perestroi­ Hampshire. With Herbert Hoover's horsecollar hang­ ka" (restructuring). He outlined a "strategy for accel­ ing around the neck of every Republican presidential erating economic development based on scientific and nominee, it is up to the Democrats to come up with a technological progress." He repeatedly stressed candidate who can reverse the post-industrial decline. "speeding up the tempo" of scientificand technological LaRouche. has a program to do so. Does anyone else progress, and the "mechanisms of acceleration ." "The have anything to say?

72 National EIR July 3, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins Alert twice a week, including periodic reviews of debt, terror­ ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Alert Bulletin appears once a week in the fo rm of a one-page telex message.

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Executive Intelligence Review ran the above map titled, "The U.S. State Department's gifts to the Soviet Navy" in our March 7, 1986. The text reported: "The U.S. State Department's beginning of for­ mal proceedings for the transfer of the Asia theater to the Soviet Union, the overthrow of the President of the Philippines, and the pending destabilization of South Korea, is treason. However, the State Department 'list' of nations slated for such treatment, or already in the throes of it, has anoth er significance: It is the beginning of the . biggest gift to the S oviet navy ever. Every country on the State Department list for destabilization is a str�tegic naval choke­ point in some part of the world ." Our map projected a S.tate Department-backed campaign to over­ throw President Chun of South Korea and to impose a banker's coup against the Panamanian Defense Forces and their chief General Noriega. Today, the strategic crisis is. worsening and the Soviets are gaining control of the naval chokepoints, just as we warned 15 months ago.

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