THE POWER OF REASON

An exciting new videotape is now available on the life and work of Lyndon LaRouche, political leader and scientist, who is currently an American political prisoner, together with six of his leading associates. This tape includes clips of some of LaRouche's most important, historic speeches, on economics, history, culture, science, AIDS, and the drug trade. This tape will recruit your friends to the fight for Western civilization! Order it today! $100.00 Checks or money orders should be sent to: Human Rights Fund P.O. Box 535, Leesburg, VA 22075 Please specify whether you wish Beta or VHS. Allow 4 weeks for delivery.

Overpopulation Isn't Killing the World's Forests- the Malthusians Are

There Are No Limits to . Growth

by Lyndon H. LaRouche, Jr. e Power of Reason: 1988 Order from: Ben Franklin Booksellers, Inc. 27 S. King St. Leesburg, Va. 22075 (703) 777-3661 / An Autobiography by Lyndon H. LaRouche, Jr. $4.95 plus $1.50 shipping ($.50 for each additional book) Published by Executive Intelligence Review MC, Visa, Diners, Carte Blanche, and American Express accepted. Order from Ben Franklin Booksellers, 27 South King SI .. Leesburg. VA 22075. $10 plus shipping ($1.50 for first copy.. 50 for each additional). Bulk rates available Bulk rales available Founder and Contributing Editor: Lyndon H. LaRouche. Jr. From the Editor Editor: Nora Hamerman Managing Editors: John Sigerson and Susan Welsh Editorial Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Gerald Rose. Allen Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White Special Services: Richard Freeman Last week in this space I mistakenly spoke of 1 million people Book Editor: Katherine Notley reported demonstrating against the Communist regime in East Ber­ Advertising Director: Marsha Freeman Circulation Manager: Cynthia Parsons lin, whereas the figure was really the estimate for the whole country.

INTELLIGENCE DIRECTORS: But I hope readers will forgive me-the events of the past week have Africa: Mary Lalevee overwhelmed any possible exaggeration. We dedicate this special Agriculture: Marcia Merry Asia: Linda de Hoyos issue of EIR to the spirit of anti-bolshevik resistance so splendidly Counterintelligence: Jeffrey Steinberg. displayed now in Germany. Paul Goldstein Economics: Christopher White The Feature, expanded to double the usual length, begins with European Economics: William Engdahl. Lyndon LaRouche's discussion of the ideas that lay behind his appeal Laurent Murawiec Ibero-America: Robyn Quijano. Dennis Small to bring into being a worldwide anti-bolshevik resistance, one year Medicine: John Grauerholz. M.D. ago (for the text of that famous call, see the back cover). We include Middle East: Thierry Lalevee Soviet Union and Eastern Europe: a report on the German developments; LaRouche's indications for a Rachel Douglas. Konstantin George policy on reunification; and maps and a chronology of inflection Special Projects: Mark Burdman United States: Kathleen Klenetsky points in the challenge to tyranny over the last year. Also, we include

INTERNATIONAL BUREAUS: some of the voices representing institutions that are fighting for the Bangkok: Pakdee and Sophie Tanapura ideals of republican freedom, from Ukraine, from China, and from Bogota: Javier Almario Bonn: George Gregory. Rainer Apel Cambodia, discussing their fightin their own words. These particular Copenhagen: Poul Rasmussen spokesmen all addressed the conference of "Food for Peace," a mass Houston: Harley Schlanger Lima: Sara Madueno movement launched by LaRouche, on Nov. 4-5 in Chicago. Mexico City: Hugo Lopez Ochoa. Josejina Economics Menendez In the section, we present a complementary package, Milan: Marco Fanini absolutely crucial to the success of the Eastern European fight for New Delhi: Susan Maitra Paris: Christine Bierre freedom. The focus is on Poland, with Helga Zepp-LaRouche's Rio de Janeiro: Silvia Palacios five-point program, the continuation of a news analysis by Webster Rome: Leonardo Servadio. Stefania Sacchi Stockholm: Michael Ericson Tarpley, and a guest commentary from Italy, by Aleksandr Minak. Washington. D.C.: William Jones You will no doubt notice that this special issue has been expanded Wiesbaden: Goran Haglund to 80 pages from our usual 72. This is in order to accommodate two

EIRIExecutive Intelligence Review (ISSN 0273-6314) is further reports, beyond the expanded cover story: a ten-page insert published weekly (50 issues) except for the second week of July and last week of December by EIR News Service on the history of the Fusion Energy Foundation, reprinted from Inc .. P.O. Box 17390. Washington. DC 20041'()390 (202)457-8840 Fusion magazine, to honor the upcoming 15th anniversary of the European HeadqlUll1en: Executive Intelligence Review foundation on Nov. 23. Nachrichtenagentur GmbH. Postfach 2308. Dotzheimerstrasse 166. 0-6200 Wiesbaden. Federal Republic Second, we bring a report from our New Delhi bureau on the of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. national elections upcoming in the world's largest democracy, as Michael Liebig In Denmark: EIR. Rosenvaengets Aile 20. 2100 Copenhagen 500 million Indians go to the polls. This is the best coverage you OE. Tel. (01) 42-15.QO will read anywhere outside of India itself, and we are proud to bring In Mexico: EIR. Francisco Dlaz Covarrubias 54 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. it to our readers as part of an ongoing commitment to seeing the news Japan subscription sahs: O.T.O. Research Corporation. Takeuchi Bldg.. 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo as "current history. " 160. Tel: (03) 208-7821.

Copyright © 1989 EIR News Service. All rights reserved. Rep�uction 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 montho-$225. I year-$396. Single issue-$ l0

Postmaster: Send all address changes to EIR. P.O. Box 17390. Washington. D.C. 20041-0390. TIillConteDts

Interviews Departments Economics 44 Heng Cheng 40 Strategic Map 4 G ,rbachov's dangerous The former President of Cambodia The anti-bolshevik resistance ignorance of economics says that instead of backing Prince explodes. There is no way Gorbachov or Sihanouk and Pol Pot, the U.S. anyone else can save the collapsing should back the Cambodia's anti­ 60 Report from Rome Soviet economy, unless all brands Communist majority. LaRouche slate tilts city elections. of monetarist dogma are scrapped and replaced with mercantilist or 58 Martin Lee 61 Panama Report Hamiltonian models of the A member of the Hong Kong The truth about Manuel Noriega. economy . Legislative Council, a leader of the opposition to Communist rule over 62 Andean Report 6 A five-point program to Hong Kong, describes the colony's Walter Marquez defends assassins. save Poland dilemma. By Helga Zepp-LaRouche, leader 63 Report from Rio of the Patriots for Germany party . An electoral "white coup." Science & Technology 8 Polish cataclysm will 80 Editorial destroy the "New Yalta" 18 The Fusion Energy The Gennany of Schiller and List. deal Foundation: 10 years of Part 2 of an analysis by Webster fighting for progress Tarpley describes the various forces This pioneering pro-technology working on Solidamosc, and the organization was illegally forced near-term deadline for national into bankruptcy by the U.S. Justice survival. Department for two years until it was "liberated" by a recent court 11 Currency Rates ruling which found that the U.S. government had conspired to shut it 12 Poland needs the 'Italian down. EIR celebrates its 15th Model' anniversary by re rinting the p A guest commentary from Milan. history of its first decade. 14 Banking 27 In memoriam: Dr. Robert Thrifts ride into the sunset. J. Moon 15 Agriculture Milk shortage becomes official.

16 Business Briefs Volume 16 Number 46, November 17, 1989

Feature International National 46 International plot to stop 66 Elections highlight crisis of Colombia's anti-drug war 'Buckwheat' Bush Former President L6pez Michelsen The defeats for candidates the has joined with the drug mafiaand President backed merely crystallize its apologists to argue that the war the impotence and ineptitude of the on drugs is "destabilizing" and only "can't do" administration. "terrorizes society ." 68 Dump William Webster 48 Samper Pizano flails in before the summit Demonstrators in Washington, D.C. support the Chi­ European tour The name "Central Intelligence nese students who rose up in Tiananmen Square. Agency" has become self­ 49 Free Lebanon fights for contradictory . 28 My worldwide anti­ survival bolshevik resistance 69 Representative Traficant initiative 50 Argentine generals retire calls for investigati9n of Lyndon H. LaRouche, Jr. looks Seineldin PanAm 103 disaster back on his 1988 appeal from the historic standpoint of the struggle 51 Korean 'settlement' in the 71 U.S.-U.S.S.R. officials seek between oligarchist and republican works? to join worst of two worlds forces. Report on the Chautauqua 52 Indian voters to choose Conference. 31 Germany's future lies in between Gandhi, and no freedom, not in reformed government at all 73 New York mayoral communism campaign failed to face 57 Is this how China policy is issues U.S. policy toward German 33 made in Washington? unification 75 Eye on Washington George Shultz backs the drug 58 Who's responsible for Ukraine wants liberation pushers. 35 Vietnamese refugees? from the Soviet Empire 76 Congressional Closeup 64 International Intelligence 39 The anti-bolshevik resistance explodes 78 National News Chronology from Nov . 10, 1988- Nov . 10, 1989.

42 Tiananmen massacre: an eyewitness report

. 43 Chinese Communists use food to control people By Ying Tsui of the Chinese Democratic Party .

44 'The people of Cambodia hate and mistrust all Communists' TIillEconomics

Gorbachov's dangerous ignorance of economics

by John Hoefle

According to reports in the Financial Times of London, two to the economists in Moscow, the nature of Gorbachov's days of "brutal debate" were recently concluded in the failure to grasp the ABCs of physical economy, and his terri­ V.S.S.R., involving Mikhail Gorbachov, economists, in­ ble ignorance of economics generally. The problem here is dustrial managers, elected deputies of the Supreme Soviet, not only that Gorbachov is ignorant of economics, but that a and others, on the policies needed to deal with the deepening number of Soviet economists, including perhaps himself, Russian economic crisis. Gorbachov rejected the idea of free­ swallow the kind of monetarist dogmas that are otherwise market-style price gouging, warning that the population known as Thatcherism, Keynesianism, Friedmanism, Hay­ would not tolerate unrestrained price increases amid the ekism, and von Neumannism, in the West. This is reflected, chronic shortages of food and goods. aptly, by the absolutely disgusting proposals for radical pro­ "I know only one thing," Gorbachov said. "That after market reforms put forward in the Moscow Economic Ga­ two weeks of such a 'market,' all the people will be on the zette. The issue here is a simple one, which nonetheless bears streets, and will smash any government, even one which repeating, that you cannot manipulate an economy to grow declares its devotion to the people." He announced that plans through monetarist manipulations: It is impossible. Some­ to reform prices had been postponed, "out of fear of sharp times, economies under the influence of monetarist manipu­ social reaction to some radical decisions." lations grow, but they grow for reasons which are contrary Gorbachov complained that the V.S.S.R. lacks a coher­ to and in spite of the monetarist manipulations. ent economic program, and appealed to the Soviet scientific "The point is," LaRouche continued, "that monetary pro­ community to help in formulating one. He insisted that what cesses are, relative to economy, intrinsically linear. The in­ was needed was a "new strategy for perestroika." evitable result of the manipulation of an economy by any Gorbachov's statements follow an article in the Soviet form of monetarism, even a zero monetary profit moneta­ magazine Ekonomicheskaya Gazeta. charging that perestroi­ rism-that is, a case in which all real profit taken in a mone­ ka up to now has been too "timid," and that "radical" new tary form is put back into the economy as productive invest­ price-reform and other "market" measures must be imple­ ment-is entropic, leading toward cyclical collapses and re­ mented. The article insists that prices be allowed to rise coveries at best. This is because of the nature of the monetary during the course of 1990, that various state industries and process, which defends itself against the intrusions of impuls­ farm monopolies be broken up. and that a stock market be es of physical economy. created. "The problem in the Soviet economy," LaRouche stated, Responding to this confusion and turmoil in the Russian "is, first of all, in the broadest terms, an allocation problem, empire, congressional candidate and political prisoner Lyn­ the failure to understand the ratios of employment and capi­ don H. LaRouche, Jr. cited the lack of understanding of the tal-intensive employment in infrastructure, agriculture, and fundamentals of economic science among the Russian elite. industry required, at existing and projectible levels of physi­ "We see again," LaRouche said, "in the hysteria and despera­ cal productivity, to maintain a balanced and growing econo­ tion of Soviet President Mikhail Gorbachov' s recent address my, an economy which is balanced and growing in physical

4 Economics EIR November 17 , 1989 economic terms referent to physical market baskets of pro­ forth, to conform to the physical-economic objectives adopt­ ducers' and consumers' goods measured in per capita, per ed. Thus, the conscious adopting of a physical-economic family unit, and per hectare terms." model is a crucial factor." LaRouche compared the collapse of the Soviet economy to similar activity in the West, saying, "There has been no Creativity of the individual economic growth in the Western economies generally, ex­ The Soviets, he said, "don't understand the essential prin­ cept for Japan, in the the West since about 1965-66, and most ciple of WesternChristian civilization, a Filioque-keyed civ­ emphatically since 1970-72. It never happened! What has ilization, upon which foundation the success of capitalism, grown has simply been the growth of monetary aggregates, insofar as it has been successful, is entirely based. The crucial and to the extent that this shift in monetary aggregates seems factor in physical economy, once all the other structural fea­ to have made some people more wealthy, this has occurred tures, axiomatic features, of this geometry are understood, only at the expense of others who are not only corresponding­ is the creative mental powers of the individual and the devel­ ly less wealthy, but at the expense of an overall contraction opment and application of those creative mental powers. And of the rest of the economy as a whole, compensating for any the entrepreneur fanatics are correct in placing the value real component to growth in monetary aggregate income in upon the individual, upon individual freedom in economy; any restricted sub-sector of the economy." however, they don't understand what the word freedom means. It means precisely not the populist irrationalism, the Monetarism or mercantilism freedom to be irrational; it means the freedom to exercise "So," he continued, "we come to the point where the reason, to innovate, to create new technologies, to assimilate choice is, essentially, either between monetarism, which technologies and to implement them in a better manner than means the death of the world economy and the death of somebody else has implemented them-that sort of thing. nations, crises of an apocalyptic character, or the scrapping "This is the engine of growth; the function of physical of monetarism, in return for a resumption of mercantilist or economy is to create the structure and to impose upon mone­ Hamiltonian models of economy. The issue then, is not mere­ tary processes that structure, to such effect that the factor of ly between the monetarists; once we put the monetarists individual intelligence, creative mental powers, that which aside, the issue becomes one between different conceptions distinguishes man from the beast-and from the ecologists of physical economy, as distinct from monetarist models of t<>

EIR November 17 , 1989 Economics 5 A five-point program to save Poland

Helga Zepp-LaRouche, chairman qf the PatrtotsJor Germany party in West Germany, appealsJor a worldwide mobilization.

Despite the tremendous difficulties confronting Poland, the price hikes, increased levels of unemployment, and factory Solidarity movement's electoral victory on Aug. 24, and its closings. "Liberalization," "deregulation," and privatization participation in the Mazowiecki government, is a historic of infrastructure and state-owned firms-theseare all potions opportunity not only for Poland, but for developments in the wizard's kitchen of this economic sorcerer which will throughout the East bloc, and thus for all of Europe. But this only succeed in subjecting the entirety of Poland's economy opportunity will only be seized if we succeed in the short term to the same brutal procedures which the IMF has already ap­ in effecting a dramatic turnaround in the rapidly worsening plied to the developing countries. Under the pretext of fighting economic situation, so that even before this winter sets in, inflation, the value of Poland's currency wotlld become so we can achieve palpable improvements in the supplies these debased, that its par value would guarantee maximum exploi­ people need. We therefore call upon the governments of the tation, while at the same time all of Poland 's production would Western nations, as well as Western bankers and entrepre­ be focused onto exporting goods at cheap prices-solely in neurs, to assist in the realization of the five-step emergency order for Poland to repay the foreign debts incurred by the program presented below. This program's adoption would previous Communist government. The ones to suffer will be represent a complete rejection of the bitter medicine which the Polish people, who, in the view of these financial circles, the International Monetary Fund has heretofore prescribed can die a silent death after taking this medicine. for this country . What Jeffrey Sachs proposes for Poland, is deliberate There is not a moment to be lost. Lech Walesa has repeat­ genocide. Interviewed in the Oct. 29 Washington Post, he edly warned that civil war will break out in the near future, admitted that he believes it will be possible to implement his unless urgently needed investment is forthcoming from brutal austerity program, because the repressive apparatus in abroad in order to stabilize the situation. And in fact, things Poland is still firmly in the hands of the Communist Party and have already considerably worsened since the Mazowiecki remains beyond Soldarity' s reach. Thus, Sachs is revealed as government came to power. standing directly in the tradition of the Nazi economics of After 40 years of socialist economic policy has sucked John Maynard Keynes: In the foreword to the first German­ the Polish economy completely dry, leaving behind a heap language edition of his General Theory, Keynes likewise of rubble, the situation has grown even worse under the boasted that Nazi Germany would be best suited for the real­ influence of all sorts of monetary advisers from the West. As ization of his economic theory . a result, supplies of even the most basic essentials of daily One thing is clear: If Sachs ever actually succeeds in life, especially food, are in absolute catastrophe. The price imposing his recommendations on developments inside Po­ of meat has grown approximately sevenfold since this past land, that will mean Poland's ruin, and will vastly increase summer, putting it beyond the means of the great majority the likelihood of a desperate Soviet intervention. It will esca­ of Poles. Just now, as the cold winter months begin and the late the sort of destabilization which will hasten the fall of energy shortages start to crop up, popular sentiment could Mikhail Gorbachov, and which in the years ahead will lead rapidly swing toward desperation; and if that sentiment be­ to an aggressive Soviet military action outside the Soviet comes directed against the government and against Solidari­ Union's own borders, and thus to a general world war. ty, it would spell the quick end of all hopes for freedom for The sole alternative to this path to certain catastrophe, is Poland, and, consequently, for all of Europe. the immediate implementation of an economic program in the tradition of Alexander Hamilton and Friedrich List. The They don't need Sachs key to Poland's economic revival is the creation of an expand­ The last thing Poland needs, is some sort of "economic ing internal market, which must be shielded with protection­ shock program," as is being proposed by Harvard-trained con­ ist measures in order to achieve self-sufficiencyin agricultur­ sultant Jeffrey Sachs: namely, a combination of wage cuts, al production and in the most important consumer goods, as

6 Economics EIR November 17, 1989 quickly as possible. This will be possible only if from the with propose the following package of measures: outset Poland systematically fosters new small and medium­ 1) An immediate halt to the practice of bleeding Poland sized industrial finns which can function as the source of of the consumer goods which it urgently needs for its own fundamental technological innovations. use. All agricultural goods produced in Poland must remain in Poland, in order to improve the supplies to its own popu­ A program for survival lation. The most important thing for Poland, is the rapid fonna­ In addition, the European Community'S planned emer­ tion of a functioning Mittelstand [small and medium-sized gency program for supplying Poland with food must be ex­ industrial interests]; and the best thing the West could do to panded and carried through, in an uibureaucratic manner, save Poland, would be to assist it in that undertaking. Hence, before the cold season gets under way. it would be of utmost urgency to make Western medium­ 2) In order to ensure that next yeru::'s harvest can actually sized entrepreneurs available as consultants to Polish groups, overcome the shortage, it is necessary to introduce now, all instead of sending this discredited Harvard graduate Sachs. those measures required to eliminate existing bottlenecks, If West Gennan, Italian, and Frenchmedium-sized entrepre­ especially in the areas of transport, food processing, and neurs brought their knowledge to bear in this way, so as to spare parts for agricultural machinery. Credits must be made help build up a Mittelstand in Poland, that would soon enable available so that next spring's harvest can be optimally pre­ Poland to build up sufficienteconomic substance to pennit it pared and yields maximized. to redefineits pricing mechanisms and to carry out a success­ 3) A list should be drawn up of all obvious production ful monetary refonn. And, if the Polish government could bottlenecks, and measures taken, in an unbureaucratic presentsuch a perspective to the Polish population, it would fashion, in order to remove these difficulties. State guaran­ spread theo ptimism which is the indispensable prerequisite tees from Western governments, but especially the initia­ for solving the crisis. tive of private businessmen, will be requiredto accomplish The 40 years of socialist mismanagement-which was this. made even worse by Moscow's looting of Poland's econo­ 4) A general economic program for Poland must be my-led to the development of a pricing structure which drafted, on the basis of the economic theory of Leibniz's bears no relation whatsoever to the actual costs of production. concept of physical economy and the Cameralism of No problems are solved, therefore, by simply getting rid of Alexander Hamilton and Friedrich List. The program must state subsidies to Poland's agricultural production; all that define priorities such that maximum increases in the does, is fan the inflation which we already see there. The productivity of the economy and of . labor can be attained solution to this difficulty, for industrial production as well as by means of technological progress. The economic recon­ for agriCUlture, will lie in setting parity prices which corre­ struction of the Federal Republic of Gennany following spond to the actual costs of production. World War II, and the industrial revolution in Japan, can In order to attain self-sufficiencyand an expanding inter­ serve as general guidelines. nal market as rapidly as possible, it will be necessary to 5) A five-year moratorium on the payment of all debt eliminate the bottlenecks in farming and in transportation. service. Poland needs this relief period in order to develop Thanks to the misguided policies of the past few years, there the necessary economic underpinnings which must fonnthe has been an enonnous exodus of people out of rural districts, basis for repaying the debt. leading to a considerable scarcity of skilled labor for the At the same time, the West should extend at least $10 food-processing and packaging industry. The only way to billion in credits-the amount which Walesa has said is indis­ compensate for this labor shortage is by introducing highly pensable. Additionally, Western banks should openbranches developed food-processing technology, which should there­ in Poland so that Poles' private savings can likewise be in­ forebe assigned a high priority. vested in reconstructing the economy. The most obvious absurdity in today' s situation, is the fact Provided that the West decides to adopt this packet of that the hungry Poles are forced to export their geese, ducks, measures, and constitutes itself as a strong lobby which rec­ and hogs at low prices, even though these items areso urgently ognizes that developments in Poland can detennine strategic needed at home. And it is preciselythese cheap imports into developments globally, then we have every reason to be the West, which the European Commission of the European hopeful. Poland has one great advantage over the West. Community and the international food cartels are using to Namely, over the past 20 years it has been less afflicted by drive farmers in the West into bankruptcy, so that we all get the process of cultural and moral degeneration. If now, in the short end of the stick--except, of course, the cartels. Poland, the inalienable rights of all human beings and their right to conditions befitting human dignity are successfully Five points for development realized, thereby bringing morality into greater harmony with In view of the immense strategic implications which the economic policy, this will have been a gain of inestimable future course of Poland holds for the entire world, we here- value for the world as a whole.

EIR November 17, 1989 Economics 7 Polish cataclysm will destroy the 'New Yalta' deal by Webster Tarpley

Second in a two-part series. Part I documentedthe structural refonn communist monetarist line. weakness of the Polish economy under successive communist In mid-October, Solidamosc unveiled a deflationary e<;o­ regimes up to the current year. nomic program calling for freemarket mechanisms, sales of state property, elimination of food subsidies, a credit crunch Enter, toward the end of 1988, the pro-Gorbachov "refonn for industry, shutting down part of the state sector, holding Communists" around Mieczyslaw Rakowski, detennined to down wage increases, an income tax, a value added tax, and graft the worst excesses of Western usury onto the worst currency, capital, and stock markets. Solidamosc Finance failures of Stalinist centralized command economy.By early Minister Balcerowicz, described as a freetrader , is predicting 1989, during the roundtable talks with Solidamosc, accord­ 10-20% unemployment and an industrial recession for at least ing to minister Wilczek, "Poland is now paying what appears one year. to be the highest rate of interest on capital in the world"- It might be argued that hyperinflation would be occurring 9% on long-tenn hard currency deposits.According to Ra­ now in Poland no matter what the policies of the Solidamosc kowski's deputy prime minister, Ireneusz Sekula, "Polish coalition government were.There is much truth in this.But enterprises have one basic and major task: to make money." the political damage is done when the Solidamosc ministers Other ministers were promising a stock market, a bond mar­ defend the austerity measures, and assume full political re­ ket, a capital market, auctions of hard currency, and treasury sponsibility for them, letting the Communists and the Rus­ bills. sians off the hook. Poland was already proceeding under the draconian What kind of a movement comes to power to imple­ "structural adjustment" dictates of the International Mone­ ment this kind of a program? Of Solidamosc much could taryFund (IMF) and the World Bank, which were demanding be said, starting with the fact that it is not a movement that the standard of living be lowered by about 12% immedi­ united around a coherent world-outlook, but rather a grab­ ately. The refonn communists began to shut down non­ bag of heterogeneous factions united by various shadings profitable state finns, and fire their "redundant " employees. of opposition to the Communist regime.Solidamosc has The magic of the marketplace was introduced for foodstuffs Christian Democrats, of the De Gasperi or Adenauer in the last days of Rakowski, on Aug. 1, with all price con­ variety, and Roman Catholic clergy continue to play an trols and most subsidies removed.Franciszek Gaik, minister important role, despite the numerous assassinations of and head of the Central Planning Office, said that his "plan­ priests carried out by Gen. Czeslaw Kiszczak's Interior ning is rooted in moving from material planning to integrated Ministry. Then there are social democrats, free-market long-tenn financial material plans; ...We believe that fo­ liberals, freemasons, Trotskyists, anarcho-syndicalists , and cusing exclusively on the material side of the plan makes no crypto-communists, many of whom joined when the exer­ sense.We should aim at a purely financial nature of plans in cise of power was imminent. The influence of the Socialist such a short time span." International and of the U.S. AFL-CIO has been strong In short, the Rakowski "refonn communist" regime was in making Solidamosc what it is: The CIA, acting together already going monetarist with a vengeance, with predictable with Willy Brandt and Lane Kirkland networks, has done social explosions looming.In August, Gorbachov and KGB everything in its power to wreck the Roman Catholic pro­ chief Vladimir Kryuchkov forced Solidamosc ministers to natural law faction, especially by funding the latters' assume the government virtually at gunpoint, against the rivals. The Anti-Defamation League and Edgar Bronfman advice ofLech Walesa and his Catholic associates.Tragical­ have contributed the past summer's Auschwitz affair, ly , once the Solidamosc ministers had taken over their portfo­ which was engineered to isolate Cardinal lozef Glemp, lios, they had nothing to offer in tenns of economic policy the Roman Catholic Primate of Poland. except more of the same-the continuation of the Rakowski Given these institutional forces, and with a little help

8 Economics EIR November 17, 1989 fromthe InternationalInstitute for Applied Systems Analysis him as pessimistic. Later, he kindly offered me a ride across (IIASA) in Laxenberg, Austria, the economic line of Solidar­ early springtime Warsaw in his small Polski PIA T. Professor nosc is coherent with the demands of the IMF and World Trzeciakowski is a Polish patriot, as reflected in his bitter Bank. But the biggest embarrassment for Soldarnosc has disappointment in the failure of socialism and his remarks been Harvard economics professor Jeffrey Sachs. Sachs has that the Soviets had deprived Poland of its army, its national attached himself to Solidarnosc like the proverbial capitalist economy, and.much of its wealth, including by such strata­ leech, claiming to be its leading economic adviser, with eight gems as raising the price for Soviet petroleumdeliveries. He visits to Warsaw since last April. asked me if I had been in contact with the IIASA, about Sachs is a Yuppie version of Hjalmar Schacht, Hitler's which I offered a very negative opiJ!1ion. Trzeciakowski's economics minister. His program is a savage monstrosity views seemed to have been formed during the heyday of that will fail in every respect, except perhaps in reviving the illusions around Thatcher-Reagan economics, and would some nostaglia for the Nazi SS, whose depredations will thus appear increasingly dated as the Thatcher-Reagan poli­ seem pale by comparison. cies were revealed as bankrupt.

U.S. abrogates its responsibility Shock fronts through economy Part of the desperation of Solidarnosc isthe refusalof the The effect Communist-Solidarnosc reforms has been to United States, the world's largest debtor nation, to provide unleash a series of shock fronts through the Polish economy, meaningful aid. When Bush went to Poland, he promised a especially in terms of inflationand shortages.Inflation during miserable $100 million in aid, just $2.50 per head for 40 1988 was estimated by the Mieczyslaw Rakowski govern­ million Polish citizens. Of that, only $10 million was actually ment as about 70% , but it has now risen to over 40-45% per in last year's budget. The Congress wanted to increase that month and, in the opinion of visiting former French President figure by four to five times, so on Oct. 4, Bush agreed to Valery Giscard d'Estaing, is now in danger of reaching provide an additional $100 million for agriculture and $100 1,000% for all of 1989. Many Poles earnbetween $30 and million for the private sector, but only if IMF conditionalities $50 per month. are strictly observed. U.S. emergency food aid as of Sept. The first shock wave came right after food prices were 14 was set at a pathetic $100 million, just $2.50 worth of decontrolled by the Rakowski regime on Aug. 1. This is a food for each Pole. step that reform Communists have always been reluctant to Instead, the Bush administration has been prodigal with take on their own responsibility. In August-September of advice. Walter Mondale was sent to explain democracy, as 1988, the Communist Chinese regime led by Deng Xiaoping was Sen. Bob Dole (R-Kans.). Secretary of Agriculture turned back from this precipice, rej ecting the demands of Clayton Yeutter, an agent of the grain cartel, union-busting Zhao Ziyang for "price reform." During his first few years Secretary of Labor Elizabeth M. Dole, leveraged buyout in office, Gorbachov and his lunatic "economists," Viktor corsair and Secretary of Commerce RobertMosbacher, and Abalkin and Abel Aganbegyan, talked about decontrolling LBO ideologue Michael Boskin of Bush's Council of Eco­ the prices of bread and other staples. Those radical price nomic Advisers will now be sent over, along with Lane Kirk­ increases and related marketization measures, according to land of the AFL-CIO and several academics. That was the the latest word from Abalkin, have been postponed until the centerpiece of Bush's Rose Garden extravaganzafor Polish­ startof the next Five-Year Plan in 1991. American Day. If the Poles want lessons in fast-buck specu­ But Rakowski, knowing he was about to cede power to lation, financial parasitism, and political hucksterism, they a non-Communist political formation, made the fateful step. will be getting the right team. A shock frontbegan to propagate through the Polish econo­ The principal economic policymaker of Solidarnosc, my. By mid-August, widespread panic was reported among Prof. Witold Trzeciakowski, had hoped for something better consumers. By mid-September, the price of milk had risen from the United States. He had asked for an aid package of by 1000%, the price of beef by 800% , and the price of sugar $10 billion, later scaled down to bank branches with $10 by 40%. Also in mid-September, the price of diesel fuel, one billion in deposits to furnishcredit. Finance Minister Balcer­ of the key energy inputs into Polish agriculture, was up by owicz has now scaled that down even further to a stabilization 60%. This price hike was immediately condemned by the fund of $1 billion from all Westerngovernments. Union of Farmers' Circles and Organizations, which said it I had the occasion of meeting Professor Trzeciakowski had not been consulted. At about the same time, liquor prices in Warsaw back in April of 1983. We talked in his office at went up by 120% and cheap vodka by 100%. In mid-October, the Polish Academy of Sciences, before which there stands tobacco prices went up 65%. a statue of Copernicus. Trzeciakowski listened politely for A second shock wave seems to have appeared during the more than an hour while I presented an outline of the first days of October, with the implementation of fu rther LaRouche-Riemann economic method, and offered some price increases on the order of about 500% in the dairy sector. prognostications for the Western world that clearly struck These came as all remaining food subsidies were abolished.

EIR November 17 , 1989 Economics 9 These brought the price of butter up to a 900% increase over Solidarnosc forced to take responsibility the Aug. 1 price level. On the single day of Oct. 2, the prices It is clear that, after the period of the roundtable talks, of milk and other dairy products went up 70% in Wroclaw. Solidarnosc was forced to assume the responsibility for gov­ According to Gazeta Wyborcza, the Solidarnosc paper, of ernment ministries under orders from Gorbachov and his Oct I., "prices have gone crazy." On the same day, it was thug enforcer, Kryuchkov, who visited Warsaw duringthe reported that the price of bread in Warsaw had jumped for formation of the Tadeusz Maziowiecki government. the fifth time, in this case by 20%. On Oct. 3, Giscard told The most lucid observer of these matters has been Lech Le Figaro that he had seen an "economic earthquake" in Walesa himself, who resisted Solidarnosc's participation in Poland. a coalition government in the first place, and then loyally Farmers, already reeling under the impact of higher fuel shouldered the task of convincing workers to end their strikes prices, are now experiencing shortages of fertilizers and ani­ and support the new government. He has repeatedly called mal fodder. In mid-October, Ursus announced price in­ on the entire Westernwor ld, and especially on such countries creases on its tractors. as the Federal Republic of Germany (which he visited) and A third shock front seems to have hit during the last days the U. S. A. to meet their responsibilities in aiding Poland. At of October in the fuel and heating area. On Oct. 30 the the same time, he has warned against the "evil aspects of government announced that coal subsidies were being cut. capitalism," which should not be imitated by Poland. Walesa Previously, the government had kept the domestic price of has described Poland as being "on the brink of an economi� coal at 60 to 70% below the $45 per ton commanded by catastrophe," and has singled out foreign debt payments as Polish coal on the international market. The domestic price one all-important factor. On Aug. 27, Walesa noted that would now levitate sharply upward. In addition, the cost of "Poland's situation is dramatic; the Poles have only a half­ electricity was raised by 150%, natural gas by 100%, and year, maybe a year, to solve their economic problems." On heat and hot water by 50%. Oct. 5, Walesa told a press conference: "Society is furious An eloquent apostle of austerity is Trotskyist Jacek and fed up. People curse Mazowiecki and Walesa because Kuron, now the labor minister. Kuron now gives a nightly they do not understand what is going on. I repeat once more fireside chat on television, urging the population to stand that Poland is threatened with civil war, like the whole bloc." firm in the face of privation. Food stamps, which have As for the Communists, theyare preparing their counter­ been introduced in an attempt to cushion the impact of attack. In an Oct. 20 statement, the Communist OPZZ trade the galloping price inreases on the poorest Poles, have union leadership began posing as the true defenders of the been dubbed kuronki by the Poles. After a visit from an living standards of the working masses: "It is not enough to IMF representative, Kuron ranted that "the most urgent appeal for easing the hard life of the jobless and the poorest issue of today is to balance the budget and that we must through charity aid, which offends dignity. Healing our econ­ cut the real wages in the first place, since no one in the omy will not be successful if it is introduced against society world has so far managed to curb inflation without cutting and without its acceptance." Some days later, a Radio Mos­ real wages." That may be what the IMF and Comrade cow commentary picked up a similar threatening note: "The Trotsky preach, since both of these agree on the need for honeymoon is over in Poland between the Solidarnosc gov­ primitive accumulation, but the real world looks different. ernment and the [Communist party] Polish United Workers The physical phenomenon of inflation has only one cause: Party ....The party's Politburo is particularly set against insufficient production. It has only one cure: to increase attempts by the government to eliminate state property . . . production, and cutting real wages is no way to go about and the Warsaw party committee has charged that the poorest increasing the productivity of a labor force. people are bearing the brunt of the crisis. Many people see The Polish currency, the zloty was quoted six years ago, Solidarnoscas engaged in the restoration of capitalism." in September 1983, at about 95 to one U.S. dollar. By Aug. With the Communists still in firm controlof the defense 19 the dollar was trading at 7000 zlotys, and since then and interior ministries, plus transport and foreign trade, and the Polish currency has been subjected to three devaluations with all government bureaucracies staffed by dyed-in-the­ amounting to about 40%, including a 20% devaluation on wool Communist appointees, the arbiterof the situation ap­ Sept. 29 and a 12.6% devaluation at the end of October. pears to be Gen. Wojciech Jaruzelski, the President of Poland The volume of sold production in the state sector declined and former Communist Party boss. From this point of view, by some 6.7%, according to governmentreports . Coal pro­ everything is ready for a bloody crackdown, far surpassing duction, in particular, is expected to be down 1.5 million the imposition of martial law in December 1981. tons in the fourth quarter of this year, compared with the When might such a crackdown come? This depends on fourth quarter of 1988. It is estimated that Poland may experi­ events which are unforeseeable. But it is certain that this is ence an electricity shortfall of 3,000 megawatts, the equiva­ what the hard-line Communists are contemplating. In the lent of 15% of the capacity presently on line. Brownouts and spring of 1983, in Warsaw, I had occasion to pay a visiting blackouts will be unavoidable. journalist's courtesy calI on the Communist press relations

10 Economics EIR November 17, 1989 official Konopacki, who at that time was the deputy to Jerzy Urban,the spokesman for the martial law regime. Konopacki C ....u.&�eDcy &' Rates described his principal job as monitoring the psychological mood of key circles and strata of society in the Polish capital. The dollar in deutschemarks. Konopacki described the Poles as emotional and unpredict- New York late afternoon fixing able, tending usually-but not always-towards depression in the winter, and toward outbreaks of euphoria or rebellion 2.00 in the springtime and warmer weather. Konopacki added that the most dangerous time of year was the second half of April, 1.90 M ... when spring could burst upon the capital with the most unpre­ '- dictable political consequences. 1.80 �

1.70 A chance for Poland A rational recovery program for Poland would include 1.60 a commitment by the government to provide infrastructure, 9120 9127 1014 10/11 10118 10/25 1111 1118 and to provide cheap credit for agriculture, industry, mining, construction, energy production, scientific re­ The dollarin yen search, and other strictly defined productive activity-not New York IIIte afternoon fixing for speCUlation or financial services. The economy must be seen in strictly physical terms, in terms of market ISO baskets of producer goods and consumer goods needed to ... 140 - .....� reach an overall level of productivity of labor. Poland � -- needs immediate freezing of all foreign debt payments, 130 followed by the opening of long-term lines of credit for the purchase of capital goods abroad. The priorities for 120 those capital goods must be determined according to the bottlenecks of Polish production, with a view to increasing no productivity of labor. Poland will run a foreign trade 9120 9127 1014 10111 10/18 10/25 1111 1118 deficit for many years, and balancing imports and exports The British pound in doUars cannot be a policy goal for the foreseeable future. Bank New York IIIte afternoon fixing branches set up by Western banks make sense if they are staffed by real bankers , capable of judging the viability 1.90 of development projects. Because of the world economic crisis, swaps and barter deals for key commodities with 1.80 other countries should be set up , all outside IMF surveil­ lance. 1.70 The last chance for aid to Poland that might head off a 1.60 tragedy of world-historical proportions would seem to be around the middle of November. Mazowiecki, visiting Pope '" I.SOf-V � rv'" " John Paul II in Rome, stressed that Poland needs emergency 9120 9127 1014 10111 10/18' 10/25 1111 1118 aid, and that, in order to be meaningful, that aid will have to begin arriving by the middle of November at the latest. Mid­ The dollar in Swiss francs November is the time when Lech Walesa will be visiting the New York late afternoon ftxing United States, the time when a direct appeal to the American 1.80 people and to the Congress, going over the head of the Bush administration, might produce results in extremis. Mid-No­ 1.70 vember is also when the German federal chancellor, Helmut Kohl, visited Warsaw. He will returnNov . 11 and will sign .-J 1.60 r\... � a 3 billion deutschemark government-backed credit line on � � Nov. 14. I.SO Mrs. Helga Zepp-LaRouche has proposed a five-point program to save Poland (see page 6). All persons of good 1.40 will around the world must now join in an eleventh hour 9120 9127 1014 10111 10118 10125. 1111 1118 mobilization to make this program a reality.

EIR November 17, 1989 Economics 11 the speedy "integration" of the country into the "free world market," that they wish for a de facto integration of Poland and Hungary into the European Market, that they recommend resisting any "protectionist temptation," and that they sug­ gest aiming at "interdependence." All of this corresponds point for point with the interests of those whom the Trilateral Commission Report (The Crisis of International Coopera­ tion, New York, 1974) defined as "the internationalproduc­ tion of multinational integrated companies." In fact, "one­ Polandneeds the fifth of the industrial product of the countries with market economies is today controlled by corporations which plan 'ItalianModel ' their investments, their use of productive capacity, their sales policy, etc., on a transnational basis" (ibid.), "taking the raw materials in one group of countries, transforming them into by Aleksandr Minak salable goods with the workforce of other countries, and selling these to a third group of countries," to use the words We are pleased to print the fo llowing guest commentarysub­ of George Ball, founding member of the Trilateral and direc­ mitted to us from Milan, Italy. It has been translatedfrom tor of Lehman Brothers(ex -Kuhn Loeb) and all this, "accord­ the Italian original by the editors of EIR. ing to the criterion of profit, the objective measure of effi­ ciency." In its risky, precarious flight from the "socialist" economic From this perspective arises the "advice" of keeping the system, Poland risks becoming ensnared in no better a condi­ borders open to free trade. "The borders of national states tion: that of a tributary to transnational financialcapita lism. are too narrow for the goals and activities of the modem International usury already has in hand, the end of the corporation," George Ball goes on. But what is the right solid rope by which Poland is bound. The country has a debt solution for Poland? The country already suffers, because of contracted with the foreign banks (mostly American) which the miserable status of the national currency, accompanied is estimated at $37 billion. With an economy in disastrous by a de facto liberalization of currency regulations, from an condition, it is obliged to entrust its hopes for economic acute dollarization of its economy. recovery and a better standard of living to further, future loans of foreign capital, to be invested in productive activi­ The 'nouveaux riches' in Poland ties. For this reason-to maintain the confidenceof the inter­ Within the misery of Poland, a new class of rich people national banks-it must continue to pay interest on its previ­ is prospering, speculators in commodities, and foreign cur­ ous debts. rencies on the (tolerated) black market. It is feared that in Moreover, and tragically, Poland (out of inexperienceor repressing this class (but by what means, given that the pres­ necessity) has been listening in these months to the "advice" ent government cannot command the police, which remains which its usurers are generously serving up to it, masquerad­ in the hands of the party?) one would suffocate a future ing as world experts . These people put the accent on the entrepreneurial class. The scarcity of business skills is all too "need" for Poland to increase its exports; and the new Polish real, and here is the Polish risk and illusion. On the one government is asking all those who are helping it, to form hand, an outside observer doubts that the new rich, with their mixed companies, part Polish and part fo�eign, capable of pockets full of speculative dollars, might be turned into the producing sophisticated quality goods such as the world mar­ missing business class: It is more likely that they are the ket requires: exportable goods with high valued added, which core of a semi-criminal, parasitic class, similar to those that supply hard currency, to be destined, it is implied, to make pervert the South American economies, which not acciden­ interest payments on the debt. tally are similarly dependent on foreign debt and on usurers' That, manifestly, is in the creditors' interests. It is no "advice. " But the solution doesnot appear to be that of asking accident that the Rockefeller family (Chase Manhattan Bank, for a "loan" from the managers of the big internationalcorpo­ one of the biggest creditor banks) created, for example, an rations, to obviate the penury of local managers. The IBM or institute to provide managerial assistance to Polish agricul­ Chase or Ford or Nabisco managers are essentially financial ture, one of the few sectors in which the country seems specialists, concerned with showing quarterly profits and capable of producing exportable goods. Further, the transna­ thus keeping the interest of investors in the big world stock tional "advisers" identify the "competitive advantage" of Po­ markets in the stocks of their corporations alive. Poland has land in the low cost of its manpower: Fiat, for example, no stock market (nor does it need one in this phase, never envisages building automobiles in Poland, from parts that mind certain "advice") and it does have needs. are made abroad. It is no surprise that the advisers applaud The contrast is, in fact, between a "sophisticated" econo-

12 Economics EIR November 17, 1989 my of financial manipulation, and a concrete economy of the firstnest-egg which makes the need to depend on foreign needs. A healthy Polish neo-entrepreneurial class must arise capital less urgent. Also on the debt issue Japan should be from the realization that the Polish people have "needs," and cited: The state went into debt but with its own citizens, in must aim at satisfying such needs for consumer goods and their own currency, not in dollars (the United States today, food. These are extraordinarily evident needs, given the pov­ on the contrary, is the biggest world debtor vis-a-vis Japan, erty of the country; there is no commodity, however humble, as a result of the anti-protectionist philosophies prevailing that cannot count on the demand of the domestic market. It there.) The farmers are also the first"natural" businessmen. is the demand of the domestic market that must be heeded. The example of Italy in the 1950s shows that it is the rural To produce above all for the internal market (and not for class that undertakes the passage to industry, often via the export) means to move toward the solution of many of the manufacture of modest products worked up in the home, with real problems of Poland's economy: to improve the standard simple machines. The aim should be the creation of a fabric of living, create jobs, train an incipient business class which of small businesses, not the attraction of the multinationals' one hopes tomorrow will be capable of competing on vaster assembly plants. markets. What Poland should therefore demand from its interna­ But naturally in this first phase, "free marketism," the tional interlocutors is precisely the opposite of that which "opening of the borders" to foreign commodities is ruinous. they are "advising": in the first place, a suspension of the The national production of goods, industry, and agriculture already accumulated debt, such that the foreign currency are too weak to compete with foreign goods. To keep the earned �ith exports may remain in the country and serve borders open means to keep Poland open to looting by national investments, rather than go to fatten foreign credi­ the multinationals, for whom the only thing appetizing tors; in the second place (but not in order of importance), to about Poland is its low-cost labor, and to open a potential obtain the consensus to keep a margin of protectionism, to "market" for Coca Cola, Sony televisions, and Nabisco develop, under the shield of customs duties, one's own econ­ crackers. The opening of the borders implies, for sure, omy suited to satisfy internal needs, even if at higher costs the colonialist perpetuation of a condition of weakness than those of the world markets. In the third place, to seek and dependency, of which the clearest examples are Peru forms of internationalaid to safeguard its own currency; such and Colombia. that, while undervalued abroad (which facilitates exports) it On the contrary, despite the "mythology" spread by nonetheless earns the confidence of Poles internally. These the multinationals' economists, the countries that have are exigencies that a small country will findit hard to impose, shown the most prodigious development-Japan and Ko­ given the power of its interlocutors, usurers, and "advisers": rea---owe their development to protectionism, which is Such exigencies, moreover, contrast sharply with the greed still enforced there despite international "advice" and and the designs that the speculators nourish in regard to the "pressures." Even Western Europe owes its prosperity tq East undergoing "liberalization"; the multinationals see the a relative protectionism, adopted after World War II, and East as a market for their products, while it ought to be still partly in effect. the opposite: The wealthy West should be a market for the Behind the customs and protectionist barriers, in fact, underdeveloped East. Japan developed a national industry thatfirstsatisfied domes­ The principal problem however-in the opinion of this tic needs, and only aft erwards-as the result of its develop­ writer-lies in Poland's apparent incapacity to formulate the ment and its growing sophistication,. the result in tum of right demands in its own national interest. As we are seeing, an experience acquired over time-did it dedicate itself to Poland is formulating the demands suggested to it by others, export. Few know that seven out of ten Japanese industries in their own interest. work even today only for the domestic market, and thatthe The positive opportunity rather comes fromthe fact that basic farm products (such as rice) have triple the priceon the Poland today can represent a "model" even for the U.S.S.R., domestic market as they do on the world market. For Japan which is surely watching the Warsaw experiment with suspi­ there never was a sudden passage from the ruins ofwar to cion but also with attention. The Soviet ruling class, too, the worldwide sale of electronic circuits and computers; suffers from the same inexperience, the same incapacity to much less will there be for Poland, a leap from backwardness discriminate between one and another "capitalist" project. to the capacity to compete on the world markets. The example of Poland-a Poland that makes "the right de­ mands"-can help Russia to follow the same path, rather What Poland must demand than the one "suggested" by the advisers they have in com­ Like nature, the economy does not make leaps. Every mon. And the U.S.S.R. can pose the same questions with a economic rebirth must begin firstof all with agriculture, the completely differentpolitical weight. Paradoxically, a Soviet sector that satisfiesthe primary needs even of capital; and the Union with clear ideas about its Westerninterlocutors can be enrichment of the farmers (in any case a relative enrichment) a precious ally in the economic negotiations which Poland is is what provides the first accumulation of national capital, conducting.

EIR November 17, 1989 Economics 13 Banking by John Hoefle

Thrifts riding into the sunset them at rock-bottomprice s, but doing Despite the much-touted 'bailout, ' U.S. savings and loan so would collapse their market val­ ue-especially the real estate. Such institutions are dy ing . action would prevent many still-sol­ vent thrifts from selling sufficient assets to meet the new capital require­ ments, and thus they ultimately face going under themselves. The solution the RTC is favoring, T he nation's thrifts continued their Barth, the chief economist for the is to borrow another $50-100bill ion free-fall into oblivion in the third OTS, told the annual meeting of the in capital-on top of the $50 billion quarter. The Office of Thrift Supervi­ U.S. Savings and Loan League in already authorized by Congress for sion, the new entity created to regulate Chicago Nov. 4-5, that preliminary the first three years-to allow the the thrift industry, revealed on Nov. 6 OTS data shows the thrifts reduced agency to hold on to the assets long that 800 savings and loan institu­ their assets by a record $15 billion in enough to sell them at a reasonable tions-nearly one-third of the 2,600 September. The previous record was price. RTC chairman William Seid­ remaining solvent thrifts--currently for the prior month of August, when man told the House Ways and Means fail to meet the new capital standards. assets dropped $13.4 billion. S&Ls Committee on Oct. 31 that those addi­ The new standards, which take ef­ reduced their deposits by $9 billion in tional funds would be needed, and that fect Dec . 7, call for a minimum of September, on top of a $5. 1 billion his agency has identified anadditional 3% core capital-including 1.5% in drop in August. 223 troubled thrifts-with assets of tangible capital-and an additional Thanks to the fire sale of assets, $164 billion-that would likely be capital reserve based upon a risk anal­ the thrifts lost just $2.5 billion in the closed during the next three years. ysis of assets. These 800 thrifts, third quarter, the best figure since the Just like the Federal Home Loan which hold some 45% of the total $1.3 third quarter of 1988-a period of Bank Board's much-touted "South­ trillion in thriftassets , fall short ofthe massive government intervention­ west Plan," the new bailout is doomed capital requirements by about $20 bil­ when they lost "only" $1.8 billion. to failure because it completely ig­ lion. They will have until Feb. 5 to Thus, neither quarter's figures reflect nores the reasons for the thriftindustry file plans with the agency that detail the depth of the crisis. collapse in the firstplace . how they intend to bring their capital­ The yearly figures, sufferingfrom Thus far, the Bush administration to-assets ratios up to the required the same manipulations, are nonethe­ has responded with a series of increas­ ' level. less staggering. In 1988, the savings ingly bizarre and unworkable There are two ways thrifts can in­ and loans lost $13.4 billion, and have schemes. In October, a Resolution crease their capital-to-assets ratios. lost $9.7 billion through the first nine Trust Corporation delegation was The best way is to increase the amount months of 1989. dispatched to Japan, to try to convince of equity capital in the thrift, either by While the thrifts continue to lose the Japanese to buy RTC bonds. Seid­ putting profits back into the institu­ money, the Resolution Trust Corpora­ man, in his congressional testimony, tion, or by attracting additional funds tion, the new agency charged with liq­ floatedthe idea that the administration from investors. Since the thrifts are uidating the assets of thrifts closed by might create a "resolution bank" to losing money at an alarming rate, the government, has already accumu­ securitize the foreclosed thrift assets there are few profits to reinvest, and lated $94 billion dollars of assets-of and sell them on the securities mar­ investors are hard to find. The second which $16 billion is foreclosed real kets, or to issue junk bonds using way is for thrifts to reduce assets by estate-from 273 failed thrifts. Those those assets as collateral. selling them off, and by reducing the figures are certain to jump dramati­ But without a change in policy, level of deposits. This self-cannibal­ cally. another bailout is inevitable. As Allan ization goes by the name "downsiz­ The RTC has a major problem on Bortel, a thriftanalyst with Shearson ing" and is considered clever in some its hands, since in an environment Lehman Hutton, said recently, "All of circles. where everyone is selling, it is diffi­ this is simply laying the groundwork The thrift business is, in fact, cult to findbuyers . The RTC won't be for Bailout Bill II. The first one was downsizing just as fast as it can. James able to move these assets unless it sells just the down payment. "

14 Economics EIR November 17, 1989 Agriculture by Marcia Merry

Milk shortage becomes official food brokers have even bid on supply­ Supplies are so scarce, that the 'freshmilk' you buy in New ing government contracts for milk powder, because there isn't any to be Jersey may have come all the way from the West Coast. had. In August, the USDA announced it would no longer give free cheese to T his past spring, EIR forecast that "Record Milk Prices Are Expected to school lunch programs, because the by the fall, U. S. milk shortages would Rise Further; The Northeast Is 'Deal­ USDA "cupboard is bare ." show up dramatically. It didn't take a ing with a Critical Shortage.' " The Enter the speculators. In Western crystal ball: Fluid milk needs increase Nov. 7 WallStreetlournal headlined, Europe, formerly the home of the re­ when schools reopen in September, "Milk Shortage Has Broad Implica­ puted "butter mountain," there are no and at the same time, the policy of the tions, Boosting Prices for Variety of "surplus" dairy commodities. In U. S. Department of Agriculture has Products." spring of 1988, whatever reserves been to depress national milk output The scramble is on by food-pro­ were in the European Community by keeping farm milk prices at only cessing firms to obtain milk products pipeline were bought up by a consor­ 50% of parity (parity is a fair return of all types, milk powder, cheese, tium of "mystery" buyers , which ev­ level), and therefore to force farmers evaporated, as well as fluid milk. Ac­ eryone knows to be the international and dairy herds alike go out of exis­ cording to the Bureau of Labor Statis­ food cartel companies such as Nestle, tence. tics, the September consumer price in­ Unilever, and a few others. As if that weren't enough, milk dex for dairy products jumped a In the United States, the Bronf­ shortages were guaranteed by the whopping 6.6% from the same time man (Seagrams) family interests , USDA "Dairy Herd Termination" period a year earlier. through the Canadian LaBatts Brew­ program of the mid- 1980s, which in­ National milk output is down over ery, have bought up so many dairy duced farmers to take a government 2% from a year ago, when levels were processing plants in the Northeast, fee in exchange for eliminating their already depressed by the drought. that they control over 50% of the fluid herds, and pledging to avoid dairy The entire food supply pipeline in milk sales in the Philadelphia and farming for at least five years . One the United States is undergoing the New York City markets. and a half million milk cows were same emptying-out process. The food In September, Eli Jacobs, princi­ eliminated-over 10% of the national isn't there as it should be-vegeta­ pal shareholder in the Baltimore Ori­ milk herd. bles, fruits, meats. oles, moved to become a Midwest At first, in September, the report­ However, the fluid milk supply is milk baron, by acquiring the Pace ing of milk shortages was strictly in a dramatic indicator of the overall na­ dairy processing facilities of the Kro­ the local news media, in accordance tional-and international-foodpipe­ ger food chain. Pace plants manufac­ with the code in Washington, D.C. line crisis, because milk is so perish­ ture cheese and package natural to continue the "rosy recovery" myth. able. When it isn't available, there is cheese. With very few exceptions, such as no stock to draw upon for "fresh milk. " All the while, the USDA and parts of Texas and California, milk The stocks of stored dairy prod­ the Department of Justice are doing shortages were reported locally every­ ucts are gone. Whole nations-the nothing to expand and safeguard the where from Iowa to New Jersey. Dominican Republic, Jamaica, and national milk supply, nor the supply Farmers reported incredible long­ many Asian countries-which relied of other vital commodities. The distance hauls of milk to fill unmet on milk powder to add animal protein USDA is projecting that milk output urban demands. Milk came from for nutrition in the diet, now can ob­ will increase next spring, and that Washington State all the way to New tain none. The international price has prices to the consumers will drop Jersey (Johanna Farms) for processing gone through the roof. dramatically. There is no reasoning as "fresh" milk. The USDA cannot obtain any offered for this government view. Finally, in the first week in No­ powder in its own storage or on the The Department of Justice has re­ vember, the national press reported open market for its food relief assis­ fused to take any anti-trust action in the months-old "news" of the milk tance to such organizations as the the case of the Bronfmans, who are shortages. The Nov. 5 New York Women's, Infants' and Childrens' now skimming millions off the farmer Times carried an article headlined, Program. For the past two months, no and consumer.

EIR November 17, 1989 Economics 15 Business Briefs

Gold ment in Beijing, Harrold said, "China can be Conference, the official organof the American justly proud of its use of interest rate policies Catholicbisho ps. Japan-U .S. accord seeks tosolve the banking crisis thatwas developing TIle report questions whether the Third last year at the timeof the bank runsof August World debt should be pre aid, given the human to stabilize prices and early September. The problem is not to let sufferingit engenders . "Is it merely arhetorical those drastic measureswhich weretaken in the question to askhow many infants and children A tacit accord between Japan and the United short run interrupt the long-run economic die every day in Africa because resources are States to raise world gold prices in orderto help reform ." now beingswallowed up in debt repayment?" stabilize Soviet perestroikLI has been reached, Harrold suggested the Communist Chi­ thedocument asks. While saying there is gen­ according to West Europeangold analysts. nese governmentintensify economic reformas erally a moral presumption that debts should The secret agreement involving the U.S. inflationis falling "very rapidly." He warned, berep aid, the bishops add, "we believethat in Federal Reserve,Ja pan's Ministryof Finance, "The tighterausterity program could generate many instances the presumptive obligation to and large insurance companies is to force the economic recession." He added , "Now is the repay should be overridden or modified be­ world price of gold significantlyhigherin com­ time that thegovemment could bevery serious cause of the social costs imposedon the poor." ing months in order to indirectly help Soviet in deepening reform to prevent inflation that Thebisho ps grounded theiranal ysis on the hard currencyearnings for imports andto help could come back again." theme of "solidarity" emphasized by Pope stabilize perestroikLI without having to offer John Paul ll. Thedebt crisis, they say, is not new bank credits to Moscow. simply a technical problem, "but a failure to Best estimates arethat a gold priceof$450 [practice] solidarity." will be the minimum needed to help Soviet Nuclear Energy needs. The gold price has been hovering at a recent two-yearlow of some $360 per ounce, Pakistan caUs for largely because of extraordinary amounts of Soviet sales to the West to get hard currency. expanded cooperation Trade The Japanese Ministry of Finance has re­ portedly aJreadybegun to implementthe new Pakistan has called for a North-South and Soviet raw materials policy by revising the rule which limits the South-South cooperationp rogramto bring the amount of assets large Japanese reinsurance benefits of nuclear energy to developing na­ exports dropping companies areallowed to hold in gold, from tions. the current 1 % level up to 3%. Based on their Munir Ahmed Khan, chairmanof the Pa­ The Soviet Union aimsto freeze raw materials current asset valuation, this shift alone would kistan Atomic Energy Commission, said on exports at 1985 levels and double exports of allow the Japanese reinsurance companies to Oct. 21 that the wider use of nuclear energy manufacturedand processedgoods by the year purchase some 25% of total world annualsu p­ would be a greathel p in checking envirorunen­ 2000, Ivan Ivanov, deputy head of the Soviet ply. Sources also pointto the Sept. 4 speech by tal pollution. He said that nuclearpower pr0- Foreign Economic Commission said Nov. 4, Federal Reserve Board member Wayne vided the only source of clean, safe , competi­ accordingto Reuters. Angell to the U .S.A.-Canadalnstitutein Mos­ tive and inexhaustible energy for developing Ivanov was speakingat the end of a two­ cow, in which he spokeof a commodity "an­ countries, and thatto deny them nuclearpower day conference on how to improve the perfor­ chor" to prepare rubleconvertibility by linking in the name of non-proliferation and force mance of Soviet exports. "By the tumof the the value to gold, among other commodities. them to use fossil fuel was to inviteecological century, half of Soviet exports must be disaster. He said the proposalfor a nuclearco­ processed goods . . . the current level is be­ operation program should not be rejected be­ tween25 and 30%," he said. Igor Faminsky of cause it came from a ThirdWorld country. the ForeignEconomic Commission addedthat Asia thistarget is "a complex difficult matter. One of thereasons we'renot exportinggoods is be­ World Banklauds China cause they'reof low competitive quality." Debt Europeanoil tradersalso reportthatSoviet anti-inflation measures exports of heating oil to Rotterdam and other u.s. bishops ask EuropeancitieS have droppedby roughly 30% Peter Harrold, senior economist of the World since August. Soviet exports of heating oil, Bank resident mission in the People's Repub­ relief for Third World normaJly averaging 230,000 barrels per day, lic of China, is quoted by Chinese news service have droppedby at least 30% on average in the Xinhua Oct. 16, saying thathisbank congratu­ U.S. Catholic Bishops called the burdenof the pastthree months, and perhaps by as much as lates China for taking "drastic measures" to ThirdWorlddebt"economicallyunsound,po­ 50%. Coal strikes and infraslructure break­ solve the inflation problem. Iitically dangerous, and ethically unaccept­ downs inside Russia arebelieved to bethe rea­ Speakingat a seminar on world develop- able," in a report issued by the U.S. Catholic sons for thedeclin es.

16 Economics EIR November 17, 1989 Briefly

• INSURANCE COMPANIES sians, and the Max Planck Institute that show Black Economy have raised their rates in the wake of either unchanging or declining UV-B at the Hurricane Hugo, the California surface ," Hallett said. ''This calls into question Center for money earthquake, and the refinery fire in the validity of the Rowland-Molina theory and Texas , the Wall Street Journal re­ laundering the U.S. hence the whole CFC replacement effort. is ported Nov. 6. Increases were ex­ This,in , threatens the massive vested in­ tum pected for commercial property in­ terests" of the environmentalists ." "The U. S. [has] the dubious distinction as the surance and reinsurance, but "several . Hallett said his questions on this with envi­ international center for money laundering," insurers are raising all commercial ronmental groups "were greeted with the Chicago Tribune reported on Nov. 5 in a rates," the Journal said. front-page article. New laws and increasing derision. . . . When I expressed amazement thatno one was undertakinga morecurrent and pressure on traditional hot money havens • A NATURAL GAS agreement credible UV -B study, I was urged to get back "have radically shiftedthe trailof the launder­ whereby Iran will supply gas to the to the agenda topic , which was, ironically, a ing of profits from the $100billion narcotics Soviet Transtaucasus republics has schedule for getting rid of HCFCs, the trade in the U.S." so­ been signed between the Soviet called softCFCsthat suchan important U. S. Attorney for Connecticut Stanley are part Union and Iranduring a visit of Sovi­ of the CFCsubstitution scenario .... To my Twardy told the Tribune, "Traffickers prefer et Minister of Foreign Economic Re­ knowledge, no govemment entities,including the stability of the U.S. and the safety of our lations Katusbev to Teheran, accord­ the Environmental Protection Agency, banks . They know the authorities are inun­ are ing to Radio Moscow Nov. I dated by the [currency transaction] reports so pursuingUV -B measurements. Thetopic nev­ they have become bolder." er comes up in ozone-

EIR November 17, 1989 Economics 17 TIillScience & Technology The Fusion Energy Foundation

10 Years of Fighting for Pro

Whatthe Justice Dept killed The Fusion Energy Foundation was one of three orga­ nizations abruptly and illegally put into forced bank­ ruptcy by the Justice Department on April 21 , 1987. A federal judge overturned that bankruptcy on Oct. 25, 1989. The FEF was founded on Nov. 23, 1974. We use this 15th anniversary as the occasion to reprint the history of the FEP's first 10 years, as it appeared in the Jan.-Feb. 1985 issue of Fusion, the magazine of the PEF. It explains the foundation's fight forprogress­ and why the enemies of might want to bring this fight to a close.

Above: Charles B. Stevens (center), FEF director of fusion engineering, at the fo unding meeting talking informally with Dr. Robert Moon (left) and Dr. Winston Bostick, both members 0f the initial scientific advisory board.

18 Science & Technology EIR November 17, 1989 The Pinch Effect Revisited

Dr WmSIon H 8osI,ck ferences - In ea rly 1975, the FEF began to sponsor co n promoting ... ,,!::-.:,�":��:,,�, ,:��.� "''', �;;:�:.:;' ::::: :,�'�::;..::' fusion energy, nuclea r power, and industrial development in ��2:;:f:�:�]:i:�; ;,��:::·��?��: ��.��'iL�� cities around the country, and by spring 1975, a bi­ :::��2:�!'7:L':.' .... :. • ���:�,: ';', I':'":.,,��,. ;�:�',�:�,� major ,. , .. . '01...... ,.t." , •• • "� ,.�. ,." "" , .... ,...... h" ...... " ••. •••••, ...... �,•• _ ...... " ... ", ... ·1.,.... . '0 .... " ,II.- �" •• ,.�'4.,, , ' ...... , .:".... . ,. I ,J monthly FEF newsletter circulated to a few hundred subscri­ ' ''''.••• 1 ...... ''.' •.•.., .. ,1.'''.• • · ... , ... , •• •••• bers. A theoreticalj ournal, the International Journal of Fusion

its debut in March 1977, featuring Winston Bos­ G:frf�;J��;��j;Ji¥:�;::�#;:��.,,,.,,, • .., ,1,•• ,_,.. . ., ....., ... ,.. ... , ...... � .�"..... En ergy, made , .. . ''-'''''' �, , ...... , •• , ...... ! t .... . " .., •• , •• ,.".. , "'_.., ... '.k.J.... ' •• " ...... , ... . ,." ...... ick's discussion of plasma filaments:-the self-orde red struc­ ...... '-1 "' .. , .... '" • .." ... ,.".�, ... _" ._ t .'::.:" �7�:�.:":'�':::·. .:::.�··.• ',�;:;;,"7.:.:Jo: that not exist. turesin fusionpl asmas many scientists said eQuid ���::�:.;=:,��;,,:��:.:".;;:;'�::���' .; �='::.:::;; Dr. Morris Le\litt wasthe FEr's first executive director.

Nuclear Power and Rebuilding the Industrial Heartl.and

FlISION

Confererrcr011 Nm;/inearihj Launches FEF Bi% gicIl/ S(inICfSDivision

Conference on Nonlinearity Launches FEF Biological Sciences Division "So youS«1 Mr. President, there'sno sucb thinKas theE-be am. " Above: John Clarke, associa te director of the DOE Office of Fusion Energy, speaking at the FEF's annual meeting in 1978.

Above: Th e Fusion booth at the Houston airport.

The Harrisburg Hoax AII -OUI �\;d"t Of! 'UdhH ftw-q:v 11'\w-Ht· ,*�I.i>o' (,,"':,':� ""��� l, W�I H"Pfl'I'� �I � 'II• ., ...,,6li>o i�,>JO:t' ftolll J. H"' ("·i .. '(h.o,...... (:_�m;I ... H.H�«II'; .�h #..t f·«"ttU'" ".. I""' llitt: I-"!' A� .f!hJ, &. tw- },u� ..�� �,�).ffl"

EIR November 17, 1989 Science & Technology 21 tI

Pr er.iden l Ro nald R eag The W an hitt' House W ashington, D.C . 20500 Dear 1r. � Presiden t: IndIsc riminate b th dg et U ls e high inle � coupled rest ra e with serv � of Fed � Chairman ��:J? eral Rt'. Paul c nom IC a n {'r threat Carlos de Hoyos d m ili/ar " en t'Co­ Sl d a er. ules IS no . he n w in dan er �� t . ! U ited Above: Rep. McCormack addresses a May and � OSlng ledlO O/ogic Its scientif al ed ge In. ic n uclear space, f 1981 FEF seminar in Wa shington, D. c., on energy, USion. and Continu in g the COt1l Ih 1nilm l> nt <11 has mad /0 progr how the science budget cuts threaten na- e An1(' r" . ess in� Inn�- t' ea t reqlrires k. t rm inv(,"'/� �� ma lech t' S In , nnlo�n' rt' SCience and tional security. Right: One of the th ousands �('ar C h .In d dev{'/opm W e t'nt. ur,lo;t' you to of postcards fusion supporters sent to Presi- act now 10' ( j lo ) wer interest dent Reagan urging him to implement the ra les 2 ) fully fund Ihe fus io b dg t�al the � .� et to ensu re 1980 fusion la w. na lion can Cla u om l reaclor by �� mer_ the Yt'a �

Above: Dr. Gottlieb at th e podium. Seated at left is FEF research director Uwe Parpart Henke.

22 Science & Technology The Fusion feature was reprinted in Japanese in the popular science mag­ azine Cosmos 82. Inset: FEF research director Uwe Parpart Henke (a t po­ dium) debated Nicholas Yost, one of the principal architects of the Carter administration's Global 2000 Report, before an audience of diplomats, government officials, and university professors. Yost stated, "We have to ch oose between despair, hopelessness, and total extinction, " while Henke documented why "a newborn child is th e principal asset of the human race, not a threat to the existence of the living."

EIR November 17, 1989 Above: Marsha Freeman, Fu­ sion's Washington editor, with astronaut Crippen.

Carlos de Hoyos Above: Adolf Busemann at the podium. "I am very pleased to sit here today and hear that my ideas from many decades ago are still working and doing more than I ever would have th ought about, " he said with characteristic modesty and humor. He briefly described his early work at Ludwig Prandtl's institute at Cottingen in the mid-1920s on supersonic flows and his prediction of the behavior of crossing Mach wa ves during high speed flight. With him (from left) are Dr. Kra fft Ehricke, Mrs . Ingeborg Ehricke, fusion scientist Dr. Friedwardt Winterberg, and plasma physicist Dr. William Crossman. Stuart K. Lewis Above: Two New York junior high school students, Michael Masterov (left) and Yaro­ slav Shoikhet, who, inspired by th e fi rs t is­ sue, built a model tokamak and won first prize in the national SEER science competi­ tion sponsored by th e Na tional Energy Fo un­ da tion.

fillNDPC l'OlICY nlSC\JSSlON MEMORANDUM

Only Beam-Weapons Could Bring to an End The Kissingerian Age of Mutual ThennonuclearTe rror:

A Proposed Modem MilitaryPolley . of the United Sl£Jtes

By Lyndon Hennyle LaRouche,Jr.

NDpCAdvdory Commitlt:e New YorkCity Much 1982 Bardwell proposes anti-freeze

Above: LaRouche's March 1982 pamphlet on beam weapons.

Left: Th e Seattle Daily at Washing­ ton University featured the FEF cam­ paign against the freeze.

EIR November 17, 1989 Science & Technology 25 I While much of Washington and the sci­ TH� i 8UN entific community was stunned by the President's speech, and the press imme­ diately began to ridicule it as "Star Wars," Lase� weapo�s e FEF qui kly mobilized to educate the th c SCIentist provide nation about beam defense. FEF exec u­ cJalmsLtl,ey'll foolproof missile soon tive director Paul Gallagher appearedon qefense lh flO:1) l' nOf"l'W�X CBS national television news supporting >'U' �Jht;;..('\ 'h(Uor w \s,lIt:o.;G;rm.' 'AJI'l 'tf)� {'iI;lt�ri , and showing S{:R-;��,o:'�ht �.;t�1II' itMn HI fe.1; ).-�(f;:-¥ II the President's proposal $wu> MI�*'"_'tt'!i"ItI��MI w�M Aifvt'd tilt t'ltlln� t"<>t;il;""" � ' �" ';< graphics drawn by the FEF depicting what Pt�r' ilef\"t.� ;\i"ll J�; m;�$S{� ..,�t"f� lI:e*<;.MHl( w .M �m!! 4:f��;'f <;/It a r'1\IMtJl;I�fin -"' !>..'ff!- !ui:i � ��Jvi'e'>il�4 �'ml li'Jd-i} Pjttl}_rt ""�I) I'i�fi:�� t�';�'*!t# fwtUh' r conference in gton � f"l)#'tI:,:1.�� Of; '�w- Vwt · plus a major Was hin ;>II:t"J:'1It'rt _�i4 %f> ' ;;'l.I;4S":'� � W(a:j <'Wt M ,�,," >Ii If,,l\O.'j.w. April 13 that drew more flian 600 peo­ �i'il:�"4�1 <..:.lJ'n�a!�h�,ltn! �t'1l: !t""' $Iat ..� t!> "�1':<¢ .t!X$f " yri,. Th� f>hHt� ,:t",,{i!'�� l.>id ple. Additional conferences were held in �J..t $!OJbiUj()f:\: �f �«f lh* j;i�<.If�ttH'U k �r.�tw capital Western Europe, .fW1S"� H'." ,"" t>�i-e-� '*"�� all the cities of _-P'AA-t-l $!Hi.t<>�fUd.rr(>ffl. lh I<)ts ,* �st.,t".t>�, e,(>ff r;pt· involving many scientists and military 1�",",1>;\('"f1.� J",..tP/l � l,»t 1il'( �",p,,*Mif'd.. �� f�!f .,�t1- . 1t', t<f\' -€It'tt\-4! (:"'3(;.u\ H� OaICt��tMi:n�.�M' j"��l�j In �l'>.J 4Iflt .';tal! !';;,;:f"C}' \\'•• � "lti: �." ..� �m I"U I'('wri�I ('W'(:f>N\ t"f> *�<;ftl'�t'C

Directed Energy Beam Weapons Techn.ologjes Can End lIIe Era of Mutual lbermonuclear Terror

Stuart K. lewis Top righ t: An Associated Press story fea turing Uwe Parpart Henke. Inset: Pa ul Gallagher in­ terviewedat the FEF officeby CBS TV.Abov e: Steven Bardwell (at microphone) debates anti-beam-spokesmen Richard Garwin (left) and John Parmentola. The event was spon­ sored in April 1983 by the N. Y. chapter of th e American Institute of Aeronautics and Astro­ nautics.

EIR 17, 1989 26 Science & Technology November In Memoriam Dr. Robert J. Moon

Robert James Moon, professor emer­ itus at the University of Chicago, a scientific collaborator of imprisoned statesman Lyndon LaRouche, and a fo unding member of the Fusion Ener­ gy Foundation , died in Chicago on Oct. 31, at the age of 77. Dr. Moon, a great scientist and devout Episcopa­ lian , is survived by three daughters and a son, and will be buried in his boyhood home town of Springfield, Missouri . In the days before his death, Dr. Moon was busy collaborating with friends from the FEF, on plans to re­ vitalize the foundation's work, fol­ lowing the Oct. 25 court ruling dis­ missing the government's 1987 in­ voluntary bankruptcy ofFEF. He had greeted the news of the reversal with characteristic joy: "Hallelujah, and Praise the Lord ! Now let's get him [LaRouche] out" of prison. Dr. Moon was a member of the Man­ hattan Project, and continued for five decades to work in frontier areas of nuclear science. In a 1985 interview in Fusion magazine, he told why he helped fo und FEF in November 1974. "First, I wanted to bring before the public worldwide the fact that energy is a key ingredient in the well-being of any society and that we had to in­ crease our energy resources in order to expand our populations. Second, energy from combustion had reached a state of equilibrium ....Third , we wanted to encourage a greater ex­ change of ideas on advanced nuclear energy-fission and fusion-among those engaged in research in these Top: LaRouche (center) and Henke visit the High-Energy Physics Laboratory at fields. The fourth point, very impor­ Ts ukuba City in Japan. FEF's theoretical publications have influenced the devel­ tant, is that we wanted to encourage opment of Japan's la ser fusion program, in particular. Dr. Chiyoe Yamanaka, new ideas and an understanding of head ofthe Institute for Laser Engineering at Osaka University, is on the scientific advisoryboar d of Fusion and Fusion Asia. Above: Thai communications minister phenomena on the frontiers of sci­ ence, especially fu sion energy and Samak Sundaravej speaking at an October 1983 conference on the development related processes." of the Pacific and Indian Ocean Basins. With him (from left) are Uwe Parpart Henke, Lyndon H. LaRouche, and FEF coordinator in Thailand, Pakdee Ta napura.

EIR November 17, 1989 Science & Technology 27 TIillFeature

My worldwide anti-bolshevik resistanceini tiative

by Lyndon H. LaRouche, Jr.

On Nov. 14, 1988, American statesman and philosopher Lyndon LaRouche issued the "Call fo r a worldwide anti-bolshevik resistance" which is reprinted on the back cover of this issue. One year later, the inhuman system which he rallied people to resist, has been shaken by a series of events provoked by the breakdown of the physical economy which LaRouche was alone in fo recasting. The editors of EIR asked him to comment on the first anniversary of his initiative. He dictated these thoughts fr om his prison cell in Rochester, Minnesota, where he has been imprisoned since January 1989, the victim of a judicial fra meup by the Western partners of today's rulers in Moscow, who made LaRouche the most prominent U.S. target of their hatred since he shaped the military doctrine that became Strategic Defense Initiative.

Benito Mussolini referred to bolshevism and fascism as twins, and Mussolini forecast, of course, at that point, that fascism was in the process of eclipsing bolshevism in much the fashion that earlier in Italian myths, Romulus had eclipsed Remus. Both fascism and bolshevism, together with many aspects of socialist theories and socialist movements as such, like sections of the Mazzini movement, were products of what we call today the "New Age," the attempt to rid civilization, immediately, of Western Judeo-Christian traditions. Nietzsche and others , such as the Satanist Aleister Crowley, spoke in astrological terms of the passing of the Age of Pisces-the age of Christ and Socrates, they said-to bring into its own the Age of Aquarius, the Age of Dionysus and Lucifer. However, bolshevism has taken on a distinct form. Fascism, as a movement in its own name, has disappeared; as a matter of fact, a good deal of it has disappeared into bolshevism, as sections ofthe old Nazi Internationalhave become assets of the Soviet Cheka, and so forth . Now, while bolshevism is not the only evil on this planet-nor is it a principal evil-as the child of the mother of all evil, bolshevism is the most deadly enemy of humanity on this planet, the most deadly

28 Feature EIR November 17, 1989 Helga and Lyndon LaRouche visit the Berlin Wall at the Brandenburg Gate in West Berlin, Oct. 11, 1988, a month befo re LaRouche issued his call fo r a worldwide anti­ bolshevik resistance movement. Just one year � later, in one of the turning � points of world history, � the popular upsurge in � East Germany is bringing � the wall down .

child of the New Age, the most deadly child of Satan's moth­ distinction of all moral, all good human society. In the good er. And thus, it is necessary to mobilize a planetary resistance human society, the center of the conception of values, is the to bolshevism, to recognize that more than simply a peculiari­ fact, that the human individual, by virtue of creative reason, ty in the Soviet system, it is a worldwide form assumed by setting man apart from and above the beasts, defines man as this particular type of evil, once the Bolshevik Revolution cast in the image of the living God. For that reason, all had established its authority in Russia. individual human life is sacred. For that reason, society must But in fighting bolshevism we are describing something be directed to accomplish several things, above all else. else. Let me go to the root of the matter, as I understand it. I First, society must recognize the sacredness of individual have come to accept as more convenient than my own earlier human life, that this planet and the inferior living forms on formulations and images of this, Friedrich Schiller's contrast it, exist for the convenience and necessity of the human of the models of society and philosophy represented on one species. Secondly, the function of society is to recognize the hand by Solon of Athens, and the opposite hand, by Lycur­ human person in this sacred character, to recognize it not gus's constitutional form for the Spartan slave society. On the only in the abstract, but in practice, in fostering creativity one hand, Solon, as we understand Socrates from a Christian within the child and the adult, in fo stering opportunities for standpoint, upheld the essential distinction which sets man trades and professions to which the individual developing his not only apart from, but above the beasts. That only man is creativities may express them for good in some way, even to capable ofthose forms of creative reasoning which are typified the point of being a parent who produces the children and by valid, scientific discoveries pertaining to a less imperfect grandchildren who are the future generations. And that the comprehension of the permanent lawfulness of the universe. society takes the good which is contributed thus by individual By means of this faculty, which is also the faculty by which members in this way, to protect it, to nourish it, for the we create classical art forms, and by whichwe enjoy theclassi­ benefit of present and future generations, for posterity, as cal art forms, man is capable of transforming his behavior, his our Constitution of the United States stipulates. knowledge, and uplifting the condition of the human species, And when man constructs institutions of society which and also taking a hand in reshaping the universe, from modest come into conflict with the sacredness of the individual hu­ beginnings on the surface of this planet to our present outreach man life, which come into conflictwith humanity'S primacy toward the Solar System and on to the stars. above all the inferior species; when men make laws which interfere with the realization and development of this creative Man in God's image potential, which frustrate the protection of the good contrib­ This quality of man , which shows us that man is created uted so, to the advantage of present and future generations­ in the image of the living Creator, thus becomes the central then , by the highest authority recognizable by mankind,

EIR November 17, 1989 Feature 29 those laws and conditions must bend, and bow down in hu­ This arrangement, and the development of men and wom­ mility before the sacredness of individual life and that which en to become citizens with such political equality, constituted the sacredness of individual human life portends. a threat to oligarchy, that is, the capricious rule of aristocrat­ Thus, in such a society, every individual, while his ic, noble, and similar families, which considered themselves, immediate relationship to universality is through the rest as a collection of families unto themselves, an oligarchy of society, is also in an efficiently direct relationship to ruling over mankind. So as in the case of George Ill's liberal the universal as the One. And thus, every society is friends who sought to crush what was developing North compelled to bow to the sacredness of the individual, even America, so before then and after, there has been an oligar­ the single individual. Thus, in the same society, if one chical movement throughout Europe and elsewhere, seeking single individual is right, and all of the others of that to exterminate the tradition of Solon and Socrates, particular­ society have a contrary mistaken opinion, society must ly as their contributions are to be viewed from the Christian bend to the will of that one, ifthat one can be shown by standpoint. intelligible means to be right. So, in about 1814-16 or slightly afterward, at Vienna and elsewhere, the oligarchy of Europe brought the barbar­ Rule by oligarchical families ians of Moscow-mad Alexander I's hordes-to become On the opposite side is the image of Lycurgus's Sparta. the policemen of Europe, in the effort to exterminate We have a group of families which cares not for God nor everything identified with the American Revolution or with Earth nor Man, except to set their society above slaves what the American Revolution bespoke, more than what and other folk deemed inferior. The ruling families of this it was. So, at a later point, the forces, of the New Age society, this ruling oligarchy, constitutes itself a law unto emerged, determined to exterminate the cultural tradition itself, and deems its own independent will, the only law, of Solon, of Socrates, of Christ, of Western Christianity, and the only recognized law, that will imposed upon other in order that the seeds of republicanism there implanted, parts of society and upon nations around them. Thus did might be exterminated permanently from the surface of the Spartans keep helots in helotry, and thus did the this planet. And these evil fellows turned to the evil children of the Spartans torture, torment, and even murder aristocracy of Boyar Russia and conspired to overthrow helots at their pleasure, and were encouraged in so doing, the Romanovs, who were accused of being too soft, by their parents. periodically, on Western Christian civilization, and bring So, in the history of all European civilization since the up from the bowels of Hell, the most backward, bestial, time of Solon in particular, there are two philosophical cur­ and brutish, of all Russians, the Raskolniki. rents which confront us. Schiller insists, that every conflict So with the aid of the Okhrana, controlled by these anti­ of any importance in that civilization is a reflection of an Romanov Boyars, the Raskolniki emerged to power renamed underlying continuation of the conflict between these two Bolsheviki. They returned a cultural movement typified by currents: between the Christian heritage of Solon and Socra­ what was bornof the Satan-worshiping Grotto of Capri. And tes, and the opposing, oligarchical heritage of Sparta, of rule so bolshevism was born. And so those wealthy, powerful by families which consider themselves and their families a families who desired an oligarchical form of rule, who de­ law unto themselves, in defiance of any natural law . That is sired to eliminate large portions of the human race in the the essential issue. name of neo-malthusian ideologies, had conspired with the Out of this process of 2,500 years or so, there emerged devil they brought forth in Moscow, to the intent of extermi­ out of Christian civilization in Europe, and in North America nating from this planet the heritage which we in Europeknow projected fromEuro pe, the highest level of civilization which best in terms of Solon, Socrates, and the legacy of Western mankind has ever achieved on this planet-not the highest Christianity. in absolute terms, but the highest in terms of potential for Thus we must choose: Do we want an oligarchical soci­ continuing development. This form of society, let us call it ety, or do we want a republican society? Do we wish to republican, typifiedby people like Dante Alighieri as well as defend the sacredness of individual human life, or do we Augustine before him, by Nicolaus of Cusa, in a certain very wish to exterminate as much life as we please, (or as pleases important respect by France's King Louis XI, by Leibniz, the World Wildlife Fund's oligarchs)? and others: This form of society prospered too well. Because So we must rally, I thought a year ago, the peoples of the it threatened to bring all mankind, all nations, not just Euro­ world, suffering grave oligarchical injustice, to attack the pean nations, and all individuals, into a state of their proper chief instrument by which all oligarchs, or nearly all of them, equality, equality in the respect that each person is cast in the have sought to destroy Western Christianity'S benefits and image of the living God. That each person, while having a contributions to this planet: bolshevism. And thus, in order relationship to nature through society as a whole, also has that future generations may live as human, we rally the peo­ a personal and direct relationship, immediately, with the ples of the world against oligarchism, by rallying them universality of the Creator. against bolshevism.

30 Feature EIR November 17, 1989 Germany's fu ture lies in freedom, not in reformed communism by Rainer Apel

The reshuffleof the East Gennancommunist party leadership broad expression of popular disgust at the protest rally of and the governmenton Nov. 7-8 spared the one person whose almost 1 million in East Berlin the dllY before. resignation from power mass protest rallies of several million The rally on Alexanderplatz Square, which featured people in many East Gennan cities had called for in the first prominent SED officials alongside ,opposition spokesmen, place: Egon Krenz stayed in the key power positions, did not will go down in history as the biggest-ever public manifesta­ step down, and ev�n played the role of key arbiter behind the tion of anti-communist sentiments in the easternpart of Ger­ sweeping purge . many since it was made the Soviet Zoneof Military Occupa­ In his untouched triple function as secretary general tion in 1945 . of the ruling Socialist Unity Party (SED) and chainnan of Speakers for the opposition got the most tumultuous ap­ both the state and the defense council, Krenz dismissed plause when calling for free elections, freedom of the press, and appointed the new Politburo, having it voted in by of speech and political association, the abolition of political the special SED Central Committee plenum in a matter prosecution laws, and for economic-political refonns. Calls of only two hours. This reshuffle, advertised as a "step were issued also to dismiss the government, the Politburo, toward refonn ," in reality strengthened the power position and to abolish the clause in the constitution of the Gennan of Krenz at the top of the regime. He never left any doubt Democratic Rc:public (G.D.R.) that affinns the eternal lead­ about the fact that he does not intend to abolish the leading ing role of the SED in the politics of the country. role of the SED, nor give way to any other regime than Prominent SED party leaders taJdng part in the rally, in communism. "I am a communist, first of all," he declared an effort to cooptthe fennent by making it look like a cross­ in Moscow on Nov. 1. partyevent , met quite a different response: They were booed And in his address on East Gennan television Nov. 3, at, as the rage accumulated over mQre than 40 years against Krenz said the "refonns," which were still to be defined, the regime spilled into the open. should proceed in strict concordance with the existing social­ Gunter Schabowski, for exampl" Politburo member and ist system and not interfere with the needs of the military: chainnan of the prestigious SED section of East Berlin, was "Our neighbors and allies in the Warsaw Treaty Organization met by continuous hissing, whistle$, and cat-calls when he are looking to, and count on us." Krenz didn't forget to spoke on "the refonn that came too late but has become stress, either, that "no defamation of officials in responsible irreversible now," but defended th� party's leading role in functions will be tolerated." In other words: Criticize who that very same refonn process. never and whatever you want, just leave me and my policy Lt. Gen. Markus Wolf, the longtime head of the notori­ alone. ous foreign intelligence service, the Stasi, was met by the For the people of East Gennany, who are revolting same expression of popular disgust, when he confessed in against the regime and its 44-year reign, the way the shakeup his speech that he was proud of having served the Stasi at its proceeded was just another signal that with Krenz in power, top for more than 30 years, defending his fonnercolleagues none of the fundamentals of the SED's rule, its control of the at the Stasi against being made "scapegoats for everything. " state, the army , the economy, and the education system, will When he voiced the opinion that "refonn and renewal are change. nothing new, hundreds of thousands of communists have fought for them before," the crowd pooed. Trust has run out But the rage of the crowd targeted not only the SED, "This man just doesn't have the trust of the people," but communism as such, including the Soviet Union as explained Sebastian Pflugbeil, an initiator ofthe New Forum the main supporter of the regime. No "Gorbymania" could opposition group in East Berlin, on Nov. 5, referring to the be observed on Alexanderplatz Square. Gunter Schabowski

EIR November 17, 1989 Feature 31 got a full dose of public fury , for example, when he began young people from the G.D.R. to the free part of Germany, his speech by stating: "There's reason for optimism, have shown to the eyes of the world that the division of because we have now a very close shoulder-to-shoulder our country is unnatural, that walls and barbed wire cannot relation between Krenz und Gorbachov." "Cut it out!" the endure ....We have less reason than ever to be resigned to crowd yelled. "Get lost!" Schabowski said he wanted to the long-term division of Germany into two states. "use an old party slogan: Forward to ever new victories, "Free self-determination for all Germans was, is, and together with our Soviet friends." Also this provoked a will be the cornerstone of our Germany policy. . . . Our flood of jeers and whistles, forcing Schabowski to interrupt compatriots who are taking to the streets day by day to call his speech for a minute. for freedom and democracy, they are proof of a longing for "Even if Krenz granted free and fair elections, the people peace that has not ceased even after 40 years of living in a wouldn't believe him," opposition member Pflugbeil de­ dictatorship. clared. "He is seen as a representative of the very same old "Even if we are only at the beginning of a broader devel­ regime that the people don't want to stay around any longer. opment and nobody can predict or underestimate the risks of Whatever Krenz does, it will be too little, and too late ." a failure and the dangers stemming from that, still there is a Mistrust of Krenz is heightened by the fact that he is not live perspective for a profound change in all of Europe, for taking any part in the "dialogue with the people" which he an all-European order of peace , for a Europe based on free­ promised, that he chooses to speak only over television and dom and self-determination." radio, and that he is staying holed-up in his closely guarded Thanking U.S. President George Bush and especially compound outside of East Berlin. French President Francois Mitterrand for their recent state­ The reaction to the television address on Nov. 3 which ments backing a reunificationof Germany, Kohl said, "With­ Krenz used to announce "changes," speaks for itself: 50,000 out a deep attachment to the community of values of free refugees left for the West in the following five days. One peoples, we could not have gained the confidence of our refugee interviewed on West German television Nov. 5, Western partners , who have always supported us in our ef­ voiced what both the refugees and thosewho are still staying forts to create a German policy. in the G.D.R. think: "Krenz? Either he goes, or the whole "The aim of our policy," Kohl went on to say, "must people will fleethe country." The crisis of confidenceamong be to contribute to a development in East Germany which the East Germans is complete: No Krenz, no Gorby either, matches the wishes of the people there; in other words, to will tum things around. help them achieve freedom and self-determination. The crisis of confidencein the regime has created a policy "For us in the Federal Republic, it is an obvious national vacuum in the country, with the SED leadership and the duty to demand from our neighbors and from our partners in various opposition groups in a race against time, to devise the world the right of all Germans to decide for themselves. solutions to the country's problems. Unlike Poland, where No one in the East or the West can ignore a vote of all the Solidamosc developed over years into an institution that Germans in favor of the unity of their country. " could govern the country, the East German opposition is not As for the current situation in East Germany, Kohl said: prepared for that task. Spokesmen for the New Forum said "The political leadership there is not freely elected, and that in radio interviews on Nov. 8 that they find themselves faced is why our compatriots cannot identify with that state; the with developments proceeding at a much faster pace than SED must agree to to renounce its monopoly on power, allow anyone could have anticipated. The opposition groups do independent parties and pledge to hold free elections. not have the qualified people required to define the needed "The people in the G.D.R. will not be satisfied with a reforms and fill the vacuum of competence left by the com­ simple reshuffling of the leadership and the resignation of munists. The leaders of the New Forum, for example, are some leaders ....The new secretary general of the SED largely artists and intellectuals, with little contact to labor will have to allow himself to be measured by whether he and little practical administrative experience. really opens the way to thoroughgoing reforms in the state, society, and economy. Kohl on the reunificationof Germany "Cosmetic adjustments won't suffice. We don't want to This basic point was also addressed in the "State of the stabilize a state of affairs that has turned unbearable. But we German Nation" speech which Chancellor Helmut Kohl gave are committed to comprehensive assistance, on the condition to the West German parliament in Bonn on Nov. 8. The that an in-depth reform of the political and economic system address reflected the strong anti-communist ferment injected in the G.D.R. are definedin unmistaken terms." into German and international politics by the refugees, and Under conditions of such thoroughgoing reforms, Kohl the mass protest of millions of East Germans, most of all the said, his government is "committed to a new dimension of rally of 1 million in East Berlin on Nov. 4. economic assistance" to the G.D.R, to "help improve the "The events of the last few days in East Germany," said quality of life of our German compatriots, and achieve free­ Kohl, "the escape of tens of thousands of predominantly dom for them."

32 Feature EIR November 17, 1989 Soviet government continued its cqmmitment to a pre-war military buildup, as it has done, then JUnder a mode of military us. policytoward planning and development which I,dubbed Plan A back in 1985, the Soviet economy must go into a physical economic Gennan reunification breakdown crisis approximately 1989-90. That was my fore­ cast in 1985 and it seems to have borne up very well. 3) The Soviet physical economi¢ crisis has been acceler­ by Lyndon H. LaRouche, Jr. ated and the Soviets, or some Soviet agencies, have been pointing out quite correctly, by the follapse of the economy The fo llowing has been edited fr om verbal remarks made by in the West, especially the economi� of the United Kingdom Mr. LaRouche on Nov. 9: and of the United States, which contrary to all talk about the boom in the United States, has becm collapsing at varying The policy of the United States toward the present situation rates, generally now accelerating silnce about 1970-71 with in central Europe should be essentially this: The United States the events of that period. There has been no real net physical governmentand people should support the dialogue between economic rate of growth in the United States or the United France's President Mitterrand and Germany's Chancellor Kingdom, since that period. There; have been some spotty Helmut Kohl . It is the German-French cooperation in prog­ exceptions within continental Europe, and of course, Japan, ress through the initiatives of Mitterrand and Kohl which and a few other places around the globe. But in general, the definesthe possibility of a workable basis for dealing effec­ Western economies have been collapsing. Now this has af­ tively with the currently developing situation. fected both prices of Soviet exports a�d has affected the poten­ The United States is now in reduced circumstances mili­ tial scale of markets of Soviet exPQrts, so the Soviets have tarily, economically, and politically, and thus cannot under­ been faced with an aggravated inteI1l1al problemas a result of take the kind of effective role which it might have in previous the shock effect transmitted through a decaying world market. years. It must play some role, and its best role is to support Mitterrand and Kohl or things in that direction, while distanc­ Poland and German reunifieation ing the United States, as Mr. Bush has done recently, from What comes into play now is the question of how we the disgusting spectacle of anti-German xenophobia fulmi­ manage this crisis. Last year, on OCt. 12, 1988, I proposed nating from Conor Cruise O'Brien and like-thinking folks that the United States support the Federal Republic of Germa­ around London. ny in an effort to engage the East Germans in a massive effort There is no problem among continental Europeans of any to save the economy of Poland. I did that because we must significance on the prospect of reunification of Germany. select a natural avenue of demon�ating what we can do That is not the primary question for the United States. I think on the politically tolerable basis fOr stopping the physical Mr. Bush has stated that his words are an adequate policy for economic bloodletting which is going on in the East bloc in the time being;· let the French and the Germans define a general, and that we should tell MQscow we're prepared to European solution for this, but keep the United States, which take on the Polish question in certain definite terms and that will tend to be tied up with special negotiations with Moscow, we would do so with German cooperation, by giving our out from too direct an entanglement in these affairs. political and other support to German effortsin this direction. Now, that said, the particular point to address is the ques­ Now obviously the role that President Mitterrand has taken tion of relationship of France, the two Germanies, and Poland with Chancellor Kohl in Germany makes this a much more in respect to the physical economic breakdown crisis which feasible proposition. is spreading throughout the Soviet bloc. There are also other things which most Americans tend to forget, and many others tend to forget: Poland is The Soviet bloc crisis culturally a part of Western EUl10pean civilization, and We must remember that there are three aspects to the apart from the fact that it was under Russian subjugation Soviet physical economic crisis. so often and so long in previous, times, nonetheless the 1) It flows essentially as a potential from the flaws in essential structure of everything which is industrial poten­ Great Russian culture, particularly Raskolnik-flavored Bol­ tial in Poland flows from Poland's cultural association shevik version of Great Russian culture and other problems with Western European civilizatioD. For that and for other of the Soviet economy as such. The reforms undertaken by reasons, there is a natural line of logistics, a natural line Gorbachov which have begun of late to be implementedhave of flow of technology, especially through Germany, and made the problem worse. somewhat through what's called Scandinavia, into Poland. 2) The immediate cause of the realization of this potential This is the path of least resistance for delivering a physical problem in its present form has been, as I forecast in 1983 economic development aid. What the United States must and began to forecast publicly in 1985, that as long as the do is support a European utilizatiop of that natural channel

EIR November 17, 1989 Feature 33 -Wir wollen trauen auf dec h6chsten Gott The Rutli Oath Und uns nicht furchten vor tier Macht der The Rutli Oath fr om Friedrich Schiller's play offreedom, Menschen.

has been chosen as the proposed oath of Wilhelm Tell, * * * allegiance to the worldwide anti-bolshevik resistance. Hear that oath in its original German, and its English No, there is a limit to the ty ant's power, translation: when the oppressed can fin no justice, when I the burden grows unbearable-he reaches Nein, eine Grenze hat Tyrannenmacht, with hopeful courage up unto the heavens Wenn der Gedriickte nirgends Recht kann finden, and seizes hither his eterna rights, Wenn unertraglich wird die Last-greift er which hang above, inalien,\ble Hinauf getrosten Mutes in den Himmel and indestructible as stars tbemselves. Und holt herunter seine ewgen Rechte, The primalstate of nature r appears, Die droben hangen unverausserlich where man stands opposite his fellow man. Und unzerbrechlich wie die Sterneselbst ­ . As a last resort, when not a other means Der alte Urstand der Natur kehrt wieder; is of avail , the sword is giv n him, Wo Mensch dem Menschen gegenubersteht­ The highest of all goods we may defend Zum letzten Mittel, wenn kein andres mehr from violence, Thus stand re before our country , Yerfangen will, ist ihm das Schwert gegeben­ thus stand we before our wifes, our children! . . . Der Giiter hochstes durfen wir verteidgen Now, let us take the oath 0 this new league. Gegen Gewalt-Wir stehn vor unser Land, We will become a single lafd of brothers, Wir stehn vor unsre Weiber, unsre Kinder! . nor shall we part in danger and distress. -Wir wollen sein ein enzig Yolk von Briidern, We shall be free , just as ou fathers were, In keiner Not uns trennen und Gefahr. and sooner die, than live in slavery. -Wir wollen frei sein, wie die Yater waren, We shall rely upon the highest God Eher den Tod, als in der Knechtschaft leben. and we shall never fear th�P�ht of men.

of flow of logistics and technology into Poland. parently planned for Malta. This is wrong. This is faulty. We do not need to put up front, at least from the stand­ Politics cannot hold back the tempo of events in a period such point of the United States, any political timetable or political as this one. Rather the tempo of political events and political criterion projecting a unification of the East Zone of Germany decisions and institutional change must race to catch up with with the Federal Republic of Germany. That is not where we physical reality. should put the emphasis at this point. That is the German and The causes for the explosionI in Eastern Europe and else­ European question, more than the U.S. question. What we where today are not meddling �y politicians as such, at least must concentrate on is the implementation of a successful nothing recent, nor are they iml11ediately the decisions of gov­ rescue effort in Poland, before the opportunity to do so is ernmentsor interventions by g9vernments. The cause for the destroyed by the effects of a miserable, cruel winter. spread of international political and economic crisis is very Therefore the issue today is not how the two Germanies simply the global physical eco omic breakdown crisis pro­ shall be linked in political abstract terms, but rather how they cess, the crisis process which hAs been energized by 25 years shall cooperate in assisting the salvation of Poland. And of persistent folly in the drift of the economic, monetary, and obviously there can be benefits to be shared, not to be de­ financialpolicies of the United!States and other relevant na­ spised, to the East German economy, from other parts of tions. We have nobody but ourselves to blame, and the Soviets Europe, to the specific purpose of ensuring that the East have no one but themselves to lDlame for the mess. German economy is able to deliver its part effectively in that Now the exigency of the h nger crisis and general eco­ rescue operation toward Poland. That should be our focus. nomic breakdown crisis has gripped us all. We must respond to the tempo of events dictated by physical reality, not to try Politics must catch up with reality to impose upon physical reality, like King Canute, our mere Finally on this matter, there are some, including Secre­ subjective whims. Men and W · men who cannot keep pace tary of State Baker, who reject the tempo of events and wish politically with the physical reRuirements of events should l it were much milder, that it could all be nicely managed step out of the position of leade ship to make room for those withing condominium summitry , like the kind which is ap- who are qualifiedto undertake these tasks.

34 Feature EIR November 17, 1989 Captive Nations

Ukraine wants liberation from the Soviet Empire by John Kolasky

From the speech delivered by John Kolasky, authorof Educa­ "Ukraine." There was a civilization in Ukraine when wolves tion in Soviet Ukraine, Two Years in Soviet Ukraine, Part­ stilled howled on the spot where the Kremlin now stands. ners in Tyranny-The Nazi-Soviet Non-Aggression Pact, And that civilization accepted Christianity a thousand years and other books, to a conference of Foodfor Peace on Nov. ago. That civilization was destroyed by the Tartar invasions 4 in Chicago, Illinois. in the l2th century. In the period afterthat , the settlers, the farmers in the area that is now Ukraine, formed armed bands, ...I am very, very much obliged to the LaRouche move­ or groups, called the Cossacks, to defend themselves against ment for inviting me here today to present the case for the marauding Tartars. In the 17th century, the forces of the Ukraine. There's a lot of injustice in the world, and I'm going Cossacks were carrying on a war against the Polish armies, to talk about some more injustice. The campaign to free and because they became hard-pressed, in l654, the Cos­ Lyndon LaRouche, and the campaign to feed the people of sacks signed an agreement with Russia as two equal partners, the world, and the campaign to free those who are oppressed, two equal countries, two equal states. Since the Russians merge into one campaign for freedom and justice .... were stronger, it was not very long before they began taking Let me make one thing clear: When we are talking about the upper hand, and by the end of the 19th century , the the U.S.S.R., when we are talking about the Union of Soviet Russians were dominating Ukraine, the Ukrainian language Socialist Republics, or the Soviet Union, we are talking about was disallowed, publishing in Ukrainian was not allowed, the Soviet Russian Communist Empire . If you don't under­ and for all intents and purposes, as far as the Russians were stand that, then you won't understand what I'm talking about. concerned, there was no such thing as a special Ukrainian We are dealing with an empire . .1 had the privilege--or the language or a Ukrainian nation. misprivilege, whichever way you want to look at it--of In 1918, Ukrainians declared their independence. In studying at the highest Communist Party university in 1921, they were overrun by the Red Armies, and integrated Ukraine from 1963 to 1965, and the slogan there was, "One into the Russian empire. world socialist system, under the leadership of the most revo­ Let me give you an idea what they were subjected to lutionary proletariat." Now, how do you translate that? It under the Russian empire. There began the process of the means one Russian empire .... destruction of the Ukrainian intelligentsia. The Russians The second concept that I wish to deal with here is this were fearful that the Ukrainians would want to become inde­ word that we deal with, "soviet." What in the world does pendent, and they were going to wipe out any feeling of "soviets" mean? In Russian, it means "councils." Now, when independence that existed among the Ukrainians. In 1929 we say "soviets," what do we means by that? Do we mean and 1930, you had the destruction of the middle farmers, the Russian empire , do we mean the Russian people? Or, do called the korpuls. They were the nationally conscious ele­ we mean all the people of the Russian empire? If we are ment of the Ukrainian nation, they were the backbone of trying to lump all th� people of the Russian empire together, the Ukrainian nation. You also had the destruction of the we are doing a great injustice to those who are being Ukrainian autocephalous, or independent, Orthodox Church. oppressed there .... And when I say destruction, I mean the total destruction: The Now, a third concept that I want to deal with here is the hierarchy, all the priests, were exiled, and they perished in question of the word "Ukraine" itself. The Russians would the gulag , or were shot in the process of elimination. like us to believe that Ukraine is just a territory, and so they Then, in 1932, you" had the premeditated, organized fam­ call it "the" Ukraine. But actually it is a nation, called simply ine in which 10 million people perished. Population of

EIR November 17, 1989 Feature 35 A rally against Soviet tyranny in Washington , D.C., during Gorbachov's visit to the United States in December 1987. Gorbachov "wanted the workers to work a little harder, to produce more, and to improve the quality . And then there would be glasnost, which means, not openness, but advertising. In other words, the workers are going to work harder, and they 're going to talk about it ...

Ukraine at that time was 40 million, so one of every four professional killers. He was a p�()tesslon;almurder er. He was persons perished in the famine of 1932-33. Then, in 1934, the head of the KGB in an. in December, you had the murder of the secretary of the Andropov conspired with . Aliyev gathered informa- City Committee of the Communist Party, Sergei Kirov . This tion on the first secretary of the Committee of Azer- unleashed a campaign against the intelligentsia of the various baijan, whose name was , proving that Akhundov nationalities. The Ukrainians and the Byelorussians suffered was corrupt. Of course, they all corrupt; but they only the most. And in 1934, afterthe murder of Kirov ,37 Ukraini­ used this when they needed on somebody. Andro- an intellectuals were arrested. The head of the military tribu­ pov then persuaded Brezhnev remove Akhundov. And nal from Moscow came to Kiev, and in a few days, 28 of the who do you think became secretary? You guessed it: 37 were sentenced to death and executed, and nine were to Aliyev. So one republic was in Andropov's pocket. be further questioned. Of those nine , one survived; when I Then began the reign of on a Stalinist scale in lived in Kiev from 1963-65 , one was still living. I didn't Azerbaijan. The appointees of were ousted. Some have the opportunity to meet him. His son, however, was in were killed, some were to the gulag . In their places Kiev University, he was expelled , along with four others, were placed men from the KGB, and you had the beginning for demanding that Ukrainian language be used in a lecture . of what is called KBG-ization o� the government. If it worked in Azerbaijan, it might work elsewhere. In The 'KGB-ization of the Soviet Union' Georgia, the head of thepolice �not the KGB , but the regular When Yuri Andropov was appointed [head of the Soviet police, called the militsia-was a general of the KGB. His secret police in 1956] , no one dreamed he would ever aspire name was Shevardnadze. Well, if it worked in Azerbaijan, to sit on the throne. But he was very able-very vicious, of let's apply it to Georgia: The st secretary of the Central course, but also very able-and very ambitious. But all the Commitee was Mzhavanadze, so She vardnadze gathered paths to the Politburo were closed. Under Khrushchov, the materials showing that Mzhavanadze was corrupt . . . and head of the Soviet secret police was not even a member of presented it to Brezhnev, and Br zhnev, again, had no alter­ the Central Committee . And this man wants to be on the native: He had to fire Mzhavanatlze. And again, guess who Politburo! (The Central Committee has 400; the Politburo became the first secretary? She ardnadze. Arid then heads has 11, 12, 15.) So he began, through the KGB , to pave a began to roll in Georgia, and you had the same process. Over way to the Politburo. The head of the KGB in Azerbaijan 30,000 people lost their position or their heads in Georgia. was a man by the name of Gen. Geidar Aliyev. He had been In their places were appointed men mainly from the KGB . brought up and educated in the KGB from the age of 16 So, Andropov had a second republic in his pocket. ... or 17, in the branch called Smersh. Now, Smersh trained Then, Andropov began loo�jng for men in various re-

36 Feature EIRI November 17, 1989 gions who would support him. He came from an area called ist, and other extremist organization�. "The entire force of Stavropol Krai [Territory] , which is in the southwesternpart Soviet laws will be applied"-you know what that means: of Russian, bordering on the Caspian and Georgia. He used the gulag and the firing squad. And he denounced those who go there every summer, to a place called Kislovodsk, where shout about the "rubbish of independttnce." ... there was a summer stock. The man who chauffeured him However, in spite of these annouQcements, the people of around when he was there was a man who had been a student the Soviet Union, the non-Russians; are demanding more in the law faculty in Moscow, he was then the first secretary rights, with the final end in view of le�ving the Soviet Union. of the regional committee of Stavropol. His name was Gorbachov .... The Ukrainian churches Now, why am I telling you this? I telling you this to give Let me limit myself to Ukraine. First of all, when peres­ you some idea of Gorbachov's background, and what you troika and glasnost were announced,j you had voices raised can expect from him. When Andropov became ill, the duties demanding that Ukrainian be made the official language of of firstsecretary were performed by Gorbachov . When Cher­ Ukraine; now , Russian's the official language. Second de­ nenko was elected firstsecretary afterthe death of Andropov , mand: the Ukrainian ministries to have control over the eco­ Chernenko was an invalid. Gorbachov carried on the task nomics of Ukraine.... And , of course, the final demand, of first secretary. And when Chernenko died, the Central is for independence. Committee met to elect a new first secretary. It was a fore­ There are also some other questions now on the agenda gone conclusion whom they were going to elect, but just that are quite prominent, like the question about the revival listen to how they elected him: He was nominated by no other of the Ulqainian churches, the Ukrainian Catholic Church in than an old Stalinist, Gromyko. Gromyko said, "Don't mind westernUkraine and the Ukrainian Autocephalous Orthodox his smile; behind that smile are steel teeth." And who do you Church in eastern Ukraine. Now, ladies and gentlemen, I suppose seconded the nomination? No other than the head of confess to you that I went to the Soviet!Union quite indifferent the KGB , Chebrikov. And who else supported the nomina­ to religion. I never attacked it, but I iwas indifferent; I used tion of Gorbachov? The. minister of defense, Ustinov, and to make fun of it sometimes. But I came back in an entirely the ideological boss, Suslov. different mood. Now, there's a combination you can't beat. Tell me, did Let me just dwell for a minute on what brought about the these people, these old die-hard Stalinists, all make a mistake change. I broke down emotionally more than once when I and nominate a liberal, a democrat? Or did they know what was over there . There was a smalL church, an Orthodox they were doing? The firstto raise the question of the insecuri­ Church, it was working one night. �n the morning, it was ty of the empire was Andropov . Andropov said the problem gone. The army had come at night, and all you saw in the

.. is the bureaucracy, drunkenness, and the dissidents, and he morning was a pile of rubble. . I proceeded to attack all three . When Gorbachov came to pow­ I had a cousin. When the Red Army came to his native er, he announced he was going to follow the policies of village, they tied him up, and they took him away, and my Andropov; no question about it. . . . aunt never saw him again. She was very, very religious. And There were other problems, too . There was the national they closed the church. Does ajust society have to take even question, the problem that within the Russian empire, half the church away from a person? The�e are the kind of things i the people were not Russians, and they wanted out. . . . that influencedme . Gorbachov announced that there would be perestroika, Now, ladies and gentlemen, herel we are , faced with an­ which means reconstruction. Now, what does that mean? It other injustice, and this is another st1l'ggle for human rights, means that he wanted the workers to work a little harder, to for peace with freedom, for justice. What can we do? Well, produce more, and to improve the quality. And then there I ask you first of all-I presume thFlt you're Christians, I would be glasnost. which means, not openness, but advertis­ presume that you go to church, I presume that you pray­ ing. In other words, the workers are going to work harder, there might be some who don't think that prayer has any and they're going to talk about it. efficacy, but I'm not of that opinionl-and I ask you first of Well, this got out of hand. The workers, they wanted to all to pray . talk all right, but they had other things to talk about. One of The second thing you can do: Give this injustice as much the first things that was raised was the national question. At pUblicity as you can. If you can writei a letter to somebody in the plenum in January 1987, Gorbachov announced that Ukraine or some other part of the ISoviet Union, saying, those who wanted to play on national sentiments could not "We're with you." If you hold a big demonstration, if you expect any leniency. In other words, "You're going to get it, can pass a resolution and forward i� on to the papers and if you raise the national question." So we already knew then forward it to the Soviet embassy, th� does a lot. And if you where he stood, and we were not fooled. can send any Bibles to any of the iindividuals behind the Since then, of course, he's become more specific. He's Iron Curtain, that, too, will help. Don't send them to the announced there's going to be a law on nationalist, chauvin- government agencies, because they don't get distributed.

EIR November 17, 1989 Feature 37 Unrest in Eastern Europe and European U.S.S.R.

• Russian Republic '\l o Moscow

U.S.S.R.

0 • "\.( Leipzig ,_

Prague ' ...�.' . ,- f', Lvov .Jr° �CIfo- "t t" Ii'\l :'.1"- \9( 0&-. "\" -'.. \ ,. ""1 '4.tl4 . _ .I ,_.- US't�\ 1'-l. .,J-- .. � ... 0 Budapest /�. -..-. j : '\l - _ ..I. , " HUNGARY I . ROMANIA ...... --- .�. .. " Belgrade 0 '\l �... Bucharest 0 YUGOSLAVIA �'_'_"'''' � BULGARIA S �Iia

TURKEY

" " � refugees " labor strikes " mass demonstrations tit, terrorism and sabotage )Ceth nic conflicts • armed repression

38 Feature EIR November 17, 1989 against him, distorting his remarks,lwhich ends in his resig- Strategic Map nation the followin.,&day . , 2. United states: Nov� 14, 1988-Lyndon H. LaRouche, Jr. issues call for "A Worldwide Anti-Bolshevik Resistance Struggle." Jan. 27-LaRouche and six associates are jailed aftera "rail­ The anti-bolshevik road" trial in Alexandria, Virginia �deral court. The jailing �arks an international outcry that will intensify. ::so YugoslaV18: Nov. 19, 1988-Ethnic conflict resistance explodes threatens to dissolve this socialist state on the southwestern border of the Soviet empire. Following a Serbian ultimatum Since Lyndon LaRouche issued his call for an international to the Albanian ethnic leadership of ithe Kosovo autonomous anti-bolshevik resistance movement one year ago, the world region, 1.3 million Serbs demonstrate in Belgrade, demand­ political scene has been transfonned by explosive develop­ ing control over Kosovo. ments in one country after another. In the map on the follow­ 4. Transcaucasus: Nov. 23, 1988-Azeri ing page, we highlight some of these. Shi'ite mobs launch pogrom against Annenians in Azerbai­ jan; state of emergency is declared in the region, where non­ 1. Federal RepubHc of Germany: Russian republics of the U.S.S.R. are set off against each Nov. 10, 1988-Bundestag President Philipp Jenninger de­ other. livers speech on the 50th anniversary of Kristallnacht, when April 9-Soviet Anny and Interior,Forces units crush dem­ Hitler launched his attack on the Jews. Moscow and its fel­ onstration of Georgian nationalists -in Tbilisi, killing 40-50 low-travelers in the West orchestrate a slander campaign and wounding 150. Tbilisi is placed under military rule.

Unres, in Asian U.S.S.R.

Key of Symbols

,. labor $trikes

V mass f,lemonstrations

_ terrorism and sabotage

X ethnic conflicts I • arm� repression

Tomsk !'«,vosilbirsk '0 Krasnoyarsk 0& K0emer ova 0 .., KUZBASS

EIR November 17, 1989 Feature 39 August-Bloody clashes between Annenians and Azeris in the predominantly Annenianregion of Azerbaijancalled Na­ gorno-Karabakh. In Baku, Azerbaijan, demonstrators de­ mand political and economic autonomy. Sept. 2-General strike in Azerbaijan. Soviet Interior Troops are deployed to "keep order." October-Mass demonstrations against military draftin Az­ erbaijan, Georgia, and Annenia. Oct. I I-Soviet troops fireon Annenian protestersin Nagor­ no-Karabakh , following a government order for an end to Annenian-Azerbaijani clashes and to the two-month-old Az­ erbaijan rail and road blockade of Annenia and Karabakh. 5. Argentina: Dec. 2, 1988-Col. Mohamed Ali Seineldin, hero of the Malvinas War, launches a limited military rebellion, demanding an end to the dismantling of the country's military forces, which are the prime target of Soviet-backed narco-terrorist irregular warfare. 6. Italy: Jan. 19-20---Founding of the International Martin Luther King Tribunal on Crimes Against Humanity, at a conference in Rome. The tribunal vows to reverse the �litical frameup of Lyndon LaRouche and associates. 7. Venezuela: Feb. 27-Riots erupt in 17 cities in protest against the government's austerity program , im­ posed on orders from the International Monetary Fund , by President Carlos Andres Perez, a professed admirer of Gor­ bachov's perestroika. 8. Brazil: March 17-President Jose Samey de­ nounces foreigndesigns on the Amazon basin, upholding na­ tional sovereignty against "One World" ecological fascists. 9. Lebanon: April-Gen. Michel Aoun closes down ports through which Syrian intelligence has run the Lebanese drug traffic for more than a decade. Soviet-allied �a res,P2nds with terror-bombing of Beirut. 10. Ibero-America: May-One hundred con­ gressmen , from all shades of the political spectrum, sign and circulate a statement demanding freedom for LaRouche. 11. People's Republic of China: May 15- 18-Mikhail Gorbachov goes to Beijing, but is swept aside by massive demonstrations by students and workers, and over ethnic disputes. which continue throughout the month. 14. SovietUnion : July-Strikeshit the princi­ June 3-5-Massacre at Beijing's Tiananmen Square. pal mining regions: the Kuznetsk Basin (Kuzbass) in central June I i-Exiled Chinese democracy leader Wuer Kaixi, and Siberia, the Donetsk Basin (Donbass) in eastern Ukraine , Van Jiaqi , fonnerly of the Chinese Academy of Sciences, and Karaganda in westem Kazakhstan. A general strike is call for economic sanctions against the Beijing regime. In the declared in Soviet Georgia, while Russian workers in the United States, the National Democratic Policy Committee Baltic republic of Estonia strikeagainst ''repression''by Esto­ (LaRouche wing of Democratic Party) circulates 1 million nian authorities. leaflets demanding a U. S. embargo of the P. R.C. Oct. 23-Coalminers in Vorkuta, north of the ArcticCircle, 12. Poland: June 4-Massive defeat for Polaild's go on strike, with botheconomic demands and demands for ruling communists in parliamentary elections; Solidamosc political freedom. emerges as decisive force. 15. Ukraine: August-Demonstrations in Lvov Aug. 24-Poland's first non-communist prime minister in and Kiev demanding freedom for the Uniate Church. 45 years, Tadeusz Mazowiecki of Solidamosc, is elected by Sept. 8-Founding of new Ukrainian mass national move­ parliament. ment, the Narodni Rukh, with support from Poland's Solid­ 13. Uzbekistan : June-Riots over lack of food amosc.

40 Feature EIR November 17, 1989 Sept. 17-Demonstration of over 150,000 Catholics in Colombian PresidentVirgilio Barf 0 declares war on the "nar­ Lvov, demanding legal status for the Ukrainian Catholic co-terrorist" mafia. Mass arrests �f drugtraffi ckers begin. Church. 19. "German Democratic Repub;. 16. Baltic RepubHcs: Aug. 23-Anniversa­ He": September-Exodus of East Germans to the West, ry of the Hitler-Stalin Pact. Culminating months of agitation which has been building since the spring, now picks up for autonomy, two million demonstrators in the Soviet-occu­ steam. pied Baltic states link arms in a human chain starting in the Oct. 6-East Germany "celebrates" its 40th anniversary by Latvian capital of Riga and extending in either direction to imposing virtual martial law in � attempt to suppress free­ the capitals of Estonia and Lithuania, in protest against Soviet dom demonstrations all around the country, including a rally annexation of their nations under thatpact . of 70,000 people in Leipzig. I 17. Sweden: Aug. 24-Swedish intelligence cir­ Nov. 9-East Germany lifts restrictionson emigration by its cles leak to the press the information that the Soviet KGB citizens. i knew in advance of the planned assassination of Swedish 20. Hungary: Oct. 7-tThe ruling Hungarian So­ Prime Minister Olof Palme. cial Workers Party votes itself 0* of existence and creates a 18. Colombia: Aug. 25-Following the assassi­ socialist party that says it support$ a transition to "democratic nation of anti-drugpresidential candidate Luis Carlos Galan, socialism." I

EIR November 17, 1989 Feature 41 Tiananmen massacre: eyewitness report an Chinese Communists use by Hanyan food to control people From the speech to a Foodfor Peace coriference in Chica­ The fo llowing is a personal account of the massacre in Tia­ go, Nov. 4-5, by Ying Tsui, member of the National Com­ nanmen Square on June 4, 1989, reported by an eyewitness­ mittee of the Chinese Democratic Party: a Beijing University student who escaped fr om China and is now living in Vancouver, British Columbia, in Canada. Friends, brothers and sisters of the human race: You Because the student fe ars reprisals against relatives still in amaze me ! You come here to care for the poor people. China, her real name cannot be used. Because the Bush You care for the people in suffering. You amaze me ! I administration and the butchers of Beijing have agreed to thought nobody cared for the poor people. I thought no­ return to business as usual, we believe it is important to body cared for the people in suffering. remind our readers of the events related here. Before I was 16 years old, I never had more than a half-pound of meat each year. For two of these years, I On June 4, 1989, I and other students accompanied a Chinese never had any food but garbage! I ate, not the sweet pota­ tricycle from one university to another. On the tricycle was to, but the leaves of the sweet potato. I ate anything edible. the body of a nine-year-old boy, who had six gaping bullet I ate mice, I ate cockroaches, I ate the afterbirth of cattle. holes in his chest. He lay stiffin the arms of his mother, who, I was 60 pounds at 16 years old, when I escaped from totally unprepared for such a fact of life, had gone mad. mainland China. I ate so much when I got to Hong Kong, Wherever we went with the tricycle, people wept openly, in within two months I was 90 pounds. This is my personal spite of the immediate danger that sympathy of any kind suffering from lack of food . shown to the victims might bring upon them. In my village, which was about 1,000 people, from The next day I watched several students from the Beijing the year 1959 until '63, almost every month, one person Sports Institute fight the martial law troops with their bare starved to death. When people starve so much, near the fists. One of them was killed right before my eyes, another end they drink a lot of water, and the whole person swells was arrested. It was not that they were so stupid as not to up. And once the body shrinks, that is the day of death. realize the futility of fighting firearms with fists, but that they In starvation, morality goes so far down, a father takes would rather die than live under a regime that would use guns away his daughter's food; the mother steals her son's against peaceful demonstrators. rationing; people trick each other for food; people steal The deeds of these students were matched by the courage of students from the Beijing Chemical Engineering Institute, who used home-made gasoline bombs against the tanks in Tiananmen Square. The disgust with the Communist Party regime is not only Immediately after the massacre, the Communist Party manifested in such public acts of defiance, but" is also seen propaganda machine began issuing stories and showing pic­ in family disputes and complete changes in individuals' per­ turesand scenes of Beijing citizens sending giftsand provis­ sonalities. ions to the martial law troops, supposedly expressing their gratitude to the army. People changed overnight The truth behind such scenes is that these citizens were I have a friend whose father is a District Mayor in Beijing. assigned to do this, against their will. At the University of For decades he and his wife have been living in perfect har­ Beijing, for example, all the professors were summoned by mony. But after the June 4 massacre, when I went to visit the Communist Party secretary for the university. They were them, his wife talked tearfully with me for over three hours told the mission and volunteers were called for. Since no about the massacre. She told me that she had given her hus­ one seemed eager to volunteer, the secretary asked party band her ultimatum-"If you continue to work for this gov­ members among the professors to take the lead. Still nobody ernment, I will divorce you; and will not permit my children responded. So lots were drawn. On the day when those who to any longer call you 'Father.' " were selected to undertake the "honor" of taking provisions An old professor who used to teach us Chinese was and giftsto the martial law troops performed their duty, they known on campus for his fondness for his young wife and went about it as if they were heading for the gallows. his son, who was born when the professor was already over

42 Feature EIR November 17, 1989 by all means, because the government steals everything from the people. They use food to control the people . We sawit under communism. You only h�ve you r' rationing in the place where you get your assignment. That is th� only place you can get your rationing. Human rights, human dignity-what are they? There's no such thing as human rights, no such thing as human dignity! People are like dogs, like pigs. In the last 40 years , the Communists have managed to maintain the population in slavery, in ignorance, so that they can han­ dle them with ease. They intimidate the will of the people. They laugh at the peo ple. They are liars , as the whole world knows these days. Communists can say anything they please ....They promote the ugliness of human nature. Kindness is condemned. There is a necessity for some organized opposition party in China. The people's agony is very clearly ob­ served in Tiananmen Square on June 4. The people's Ying Tsui af the Chinese Democratic Party. force and the people's power is also clearly observed in Tiananmen Square on June 4. The success of the Poles, the success of the Hungarians tell us there is a necessity and love. We need to learn how to make a sound economy for an opposition political party . We believe that. with strong infrastructure for energy , for transportation, The doomsday of all inhuman tyranny will come soon. for education .... We just need to fight hard, and work hard. The end of our We need to face this world of injustice, of inhumanity. enemy is corlling. God helps those who help themselves. I am a member of the Chinese Democratic Party . Our We need to help ourselves. We'd like help from all over objective is to build a democratic China for the Chinese the world .... people, and for the peace of the world. If China is in the We'd like to build a society of justice, of kindness, of wrong man's hands, there's no way the world can have hard-working people. Without justice, people don't know peace-from Cambodia, from Vietnam, we can see that. what they're working for. ... I have no more to say, except to work hard, to fight We need to learn how to educate, based on wisdom hard , and to learn hard . Let's do it together. Thank you.

50 years old: He therefore always stayed home except for his look at events in the world, and the principle by which they time in the 'classroom . But during the demonstrations he live. walked all the way to the campus to listen to news from Do not think that the Chinese people have been intimi­ the student-run radio station. Several times I saw him so dated into submission. As a matter of fact, my talks with engrossed in listening to the broadcasts that he even forgot people who have arrived in Vancouver more recently, have he was standing in the rain ! convinced me that only the extremely gullible are buying the Under the pervasive "white terror" of the regime against government's story of the Tiananmen Square massacre. the democracy movement, the struggle has gone under­ Forty years' experience under the rule of the Chinese ground. An astute observer noted that an article in the govern­ Communist Party has taught the Chinese people to read news­ ment's People's Daily, several weeks after the massacre, papers in a unique way: If the newspapers say that things are which explained the function of tear gas, actually disclosed normal, they are actually abnormal; if the government says in an indirect way the hideous crimes of the current regime. that there were no deaths in Tiananmen Square , there must No wonder the party is still increasing its control over any have been many casualties in that very place. means of public discussion by closing down more and more People have learned, and are deaming, to fight back in newspapers and journals. every conceivable way. In this sense, we may say that the A Chinese proverb goes: " Where there is oppression there Chinese Communist Party sounded its own death-knell on is rebellion." It sums up both the way the Chinese people June 4, 1989.

ElK November 17, 1989 Feature 43 Interview: Heng Cheng

'The people of CaIIlbodia hate and Dlistrustall CODlDlunists'

H eng Cheng, fo rmer President of Cambodia, entered nation­ the Paris Conference to consolidate and legitimize the posi­ al politics in 1958. He served in several capacities in the tion of Heng Semrin. If elections are held in the next six cabinet, including Secretary of Agriculture fr om 1960 to months, Heng Semrin will win. lXfter the Vietnamese troop 1962 . He was elected President of the National Assemblyfor withdrawal, they will still keep 2,500 military in each prov­ two one-year terms, serving fr om 1968 to 1970 . In 1970, he ince in Cambodia. There are more than 1 million Vietnamese was elected President of the Republic of Cambodia, serving civilians in Cambodia who will stay, so we could not win an until 1972 . He left Cambodia in 1975, shortly before the election. takeover by Pol Pot's Khmer Rouge. He presently lives in Houston, Texas, and is president of Khmer Unityfo r Peace EIR: We have seen in China re ently, that even after 40 and Freedom . This interview was conducted by Harley Sch­ 1 years of Communist rule, millions of people demonstrated langer on Oct. 31. against the Deng Xiaoping government. Do you see the same in Cambodia, that, given the ch�nce, people would vote EIR: Would you comment on the situation facing Cambodia against the Communists? following the breakdown of the Paris Conference? Heng Cheng: Most of the CambodianI people don't like the l Heng Cheng: The world now realizes that the Cambodian Communists, they have been the ictim of the Communists, peace conference collapsed because of the Communist gov­ they know the Communists killed their families, they emp­ ernmentof Hun Sen, backed by Vietnam and Russia, and the tied our cities and ruined our agriculture, creating food short- I Khmer Rouge backed by the Chinese. These communists ages. Many people were worked to death and many starved. have already caused the Cambodian people to suffer one of There are people starving today. the worst tragedies in the history of the world. The Khmer 1 Rouge killed over 1 million in their insane attempt to return EIR: You must be very disappointed with the U.S. role at Cambodia to an agrarian society. It is believed that they the Paris Conference, since the Bu h administration has been. planned to kill as many as 5 million more , if necessary , to more interested in promoting goo relations with the Soviet consolidate their plans. Union, which is backing Vietnam, and China, which sup­ The only thing that prevented further massacres was a ports the Sihanouk-Pol Pot coalition, than in helping the purge within the Khmer Rouge that forced Heng Samrin to Cambodian people. separate from Pol Pot and ask the Vietnamese Communists Heng Cheng: Yes, this is true , ecause they don't know for their support. The Vietnamese responded by ousting Pol very well the real situation. As I told President Bush, the Pot in December 1978. Before Pol Pot's ouster, he and Heng Communists exploit indirectly, a d the U. S. and our other Samrin not only savagely massacred Cambodians who resist­ friends from the free world, they d6n't know the ploys of the ed them, but they also destroyed the social, political and Communists. cultural framework of the nation. This may have been the worst holocaust in the history of man. EIR: What about the role of privateI individuals, such as These events led the people of Cambodia to hate and mis­ Henry Kissinger and others , who areusing their influence to trust all Communists regardless of their origin. The people shape U.S. policy? I strongly oppose the continuation of Communists in power. Heng Cheng: He is not popular, but he has his connection We appeal to the United Nations and particularly to the with Chase Manhattan Bank. They can do this because the American people for help. American people do not know the real situation. The Com­ munists are smart in making propaganda. That is what hap­ EIR: What would happen if elections were held now? pened in the Vietnam war, they e ploited the opposition of Heng Cheng: The Vietnamese Communists tried to exploit some Americans [to the war] , w didn't lose the war, we

44 Feature abandoned it, when the Congress stopped military aid to good years. Meantime, you may . have flooding, drought, Cambodia, Vietnam, and Laos and these countries fell down. insects. How much does thefarme r get then? The Communists had no support, they have no support now, Then, when you have a good crop, the price drops. So you but they spend money to make propaganda. must impose a price that protects the agricultural producer.

ElK: What do you think the U.S. should do to help the ElK: What results did you achieve as secretary of agri­ people of Cambodia? culture? Heng Cheng: In my opinion, the U.S. has to support the Heng Cheng: When I firstbecam� secretary we had no trac­ wishes of the majority of the Cambodians to apply democra­ tors. We soon had more than 4,()(X)tractors . In a new area, cy. U.S. policy must not continue to be dependent on agree­ the land is overgrown; to plow, to exploit by oxen, it takes ments made with Moscow and Beijing, but must respect the five years to exploit one hectare, to clear the land and make wishes of the Cambodian people for national sovereignty. it productive. This problem restricted land useto areas pre­ The American people have a long and rich tradition of viously exploited. With the tractor, it takes one day to prepare human rights, freedom, and respect for other people. We a hectare. This meant we could increase land use. To help plead for support of our cause, which, simply stated, is to let people buy tractors, we protected the price [of the tractors], non-communist Cambodians participate in the next peace with an exemption tax, and we gave an exemption from tax meeting. We representthe majority of the Cambodian people for buying fertilizer. and we do not owe allegiance to any country . With these policies, we had a such a large increase in We have to prepare for Cambodian reconstruction, to food production, that I had to go to other countries to look attract help from other countries and loans from international for markets to export food. banks. For this, we need first, security. Secondly, we need democracy, real democracy. Third, we need a constitution, ElK: So you provided incentives for them to modernize? to form a basis for good government. Heng Cheng: Yes. We also introduced diversification, Then, we must rebuild infrastructure. This means roads, which lowered the risk we faced from being too dependent streets , telephones, all communications, electricity. We can on only one or two crops, and to grow some crops that we export agricultural provisions which are frozen, like fish and previously had to import. We developed cotton and rubber. fruit, but if we do not have enough electricity, we cannot do We encouraged and supported increasedproduction of exist­ this. We need big electrical generators, so we can have a ing crops, such as fruit trees, citrus trees (limes, lemons, low price for the people. Now, we have generators from grapefruit, and oranges) and com. ,We started producing cof­ Communist countries, they are small and expensive, so we fee for export. I encouraged people to grow jute to make bags cannot compete with other countries. We have to build a for rice, so that we did not have to import bags from India. modem port for trade . Then we built a factory to produce the bags. Productive agriCUlture allows a transformationof an economy to develop ElK: One of the most serious problems facing the region small and medium industry. is that of starvation. Cambodia was once a food-exporting We encouraged the production of beef cattle. I asked nation. What policies did you promote as secretary of agricul­ Americans to send us the Brahma bull, because the cow in ture which enabled Cambodia to produce a food surplus? my country is very small. When I bred it with the Brahma, Heng Cheng: When I was secretary of agriculture, I encour­ it became big. aged expansion of agriCUlturethrough new technologies, such as selection of seed, use of tractors to replace oxen, use of ElK: Since your reforms showed that Cambodia could be fertilizer and insecticides, and also, a policy to protect the a food exporter, what could we do today with the correct price paid to the producers. I was the firstsecretary of agricul­ government policies? ture to explain to the governmentthat, for example, to have Heng Cheng: We could be amajor food exporter. We know rice, you have to spend 160days from planting to harvest. how to produce the food. We must have good relations with You must know each day what you have to pay to produce the other countries to have markets .·We must have money to crop, so you must know if you will have the price. exploit these potentials. For example, the situation we have with fresh fish is special, we used to export a lot, but now ElK: In other words, what we used to have in the United we don't have enough money to exploit this resource. States, a parity price, to cover the cost of production? From the Great Lake to the south, all along the Mekong Heng Cheng: Yes, that's right. In industry and commerce, Delta, there is very rich land, it is easy to earn money here, when you buy something from another country, you have this is the area the Vietnamese occupy. The Mekong flows insurance, so when you have problems, if the ship sinks, from Tibet, and flowsfor 4,000ki:lometers . The land around when you lose the product, you have insurance pay . . . in this river is very fertile. In my opinion, if we have real agriculture, in five years, you may have only two or three security and some aid, we could rebuild very fast.

ElK November 17, 1989 Feature 45 �ITrnInternational

Internationalplo t to stop Colombia's anti-drug war

by Jose Restrepo

The Colombian government's declared war against the drug being betrayed by his own political colleagues, Cano urged cartels came under violent attack from former President Al­ that Lopez Michelsen, Samper Pizano, and their ilk be fonso LOpez Michelsen, during a Nov. 3 speech to a gather­ brought before a "summary trial" on charges of treason and ing of Colombian legal experts in the city of Paipa, Boyaca.. desertion in time of war. In his speech, Lopez went to the extreme of saying that "the so-called war against the drug trade" constitutes "a new The face of treason element of destabilization" in the country. In his Paipa speech, published Nov. 4 in the Conservative Lopez Michelsen's speech coincided with the appear­ daily El Siglo. Lopez Michelsen asked rhetorically, "Why is ance-in publications worldwide-of an article by his it that only in Colombia has the fight against the drug trade friend, writer Gabriel Garcia Marquez, advocating govern­ turned into ...a war between the State and the mafias? How ment "dialogue" with the narcotics mafias. It also coincided has it come about that a problem to be handled between the with tours through Europe of presidential candidate Ernesto local police and criminals, as occurs in other countries, has Samper Pizano, the most visible head of the drug legalization become a great national concern, affecting the economic, lobby in Colombia and political heir to Lopez Michelsen, social, and even political life of the entire citizenry? .. and of so-called "human rights" advocates deployed by the What came first, the Ministry of Justice classifying the war Colombian Communist Party . against the drug trade as a problem of state , or the chain of These deployments were denounced Oct. 26 as "a homicides that terrorizes society?" genuine international conspiracy" of the drug mafia and Lopez replies: "It seems to me that to claim it was the its left-wing apologists, by the lead editorial of Colombia's assassinations that forced us to raise the level of the conflict leading anti-drug daily El Espectador. That editorial re­ inverts the terms; it was by giving it the character of a war that ferred specifically to an upcoming "human rights" extrava­ Colombia has become the only country where such atrocious ganza in Amsterdam, at which narco-terrorists of all stripes events have spread throughout the national territory." Lo­ will be congregating to point the finger at the Colombian pez's message is clear: if Colombia had struck a deal with government for allegedly using the pretext of a war on the drug mafia back in 1984, when Lopez served as the drugs to mount a "dirty war" of repression against the emissary of the cartel's amnesty proposal, there would have Colombian left. The most recent report issued on Colombia been no problem today. He then concludes with the argument by the London-based Amnesty International, which charges that if, indeed, this is a "real war,"then the drug traffickers Colombia's governmentand Armed Forces with all manner have every right to seek peace negotiations with the gov­ of human rights violations in their anti-drug operations, ernment. was the first major salvo of that international conspiracy. It were appropriate here to refresh Sf. Lopez's memory The conspirators were also denounced by name as trai­ a bit. The power of the drug mafia did not, in fact, derive tors , in a signed Oct. 25 editorial by El Espectador's director from the Barco government's declaration of war against it. Juan Guillermo Cano. Warning President Barco that he is Rather, the cartels took root in Colombia through the creation

46 International EIR November 17, 1989 of various speculative and money-laundering capabilities-­ sabotaging efforts to reach a negQtiated settlement with the including the so-called "sinister" or black-market window at drug cartels and of using the Colombian war on drugs as a the Colombian central bank-facilitated by the infamous pretext for sending in U.S. troops. "tax reforms" under L6pez Michelsen's 1974-78 adminis­ In his article, Garcia furiously denies that such a thing as tration. the "narco-guerrilla" exists-perhaps in deference to his Further, the drug cartels began to infiltrate and capture good friend FidelCastro, whose financing of both the ELN the institutions of state through the purchase of congressmen and M -19 narco-terrorists in Colombia is as well known as his and investment of "narco-dollars" in electoral campaigns. sponsorship of Havana's long-term guest, Medellin Cartel The most celebrated case, of course, is that of L6pez Mi­ financier Robert Vesco. If the U.S. can prove that the drug chelsen's re-election bid in 1982, when the treasurer of his traffickers and guerrillas are one, argues Garcia, "the rest is presidential campaign accepted 20 million Colombian pesos just a question of sending troops to Colombia under the pre­ from MedellinCartel mafiosoCarlos Lehder, currently serv­ text of capturing the one and battling the other. In the end, ing a life sentence in a U.S. jail. In 1983, Lehder told report­ sooner or later, all of us Colombianscould be extradited. " ers that the 20 million peso contribution had been a cartel "The war against the drug trade in Colombia will be long, downpayment on legalization of the drug trade, were L6pez ruinous and without a future," warns Garcia, who laments to have been re-elected. L60pez's campaign treasurer admit­ that efforts to establish a dialogue between the drug cartels ted to taking Lehder's money, but denied that any strings and the Colombian government have repeatedly failed, in­ were attached. That campaign treasurer was, of course, legal­ cluding his own mediation effort in late 1985. He hints that ization lobbyist Ernesto Samper Pizano, currently making the drug traffickers have, perhaps, been provoked into their his own bid for the country's top office. violent deeds. Garcia is not the only one shedding tears for Colombia's Promoting legalization poor misunderstood drug traffickers. The "human rights lob­ Samper's European tour, which took him to Spain, byists" are mobilizing internationally, just as El Espectador France, and Sweden, was intended to deliver a single mes­ has denounced, against Colombia's anti-drug war. On Oct. sage: that drugs must be legalized worldwide. On Oct. 27, 30, in a press conference given in Bonn, West Germany, during a Bogota press conference on the eve of his departure the president of Colombia's National Association of Judicial for Europe, Samper reiterated that "If there exists the percep­ Employees accused the Barco gO'lernmentof using his anti­ tion that the war against the drug trade is not going to be won, drug war as a "smokescreen" for violating human rights. the way will be opened to reach a negotiated solution. . . . Antonio Suarez is, not accidentally, a leading member of Legalization is the viable alternative." That theme was re­ Colombia's Communist Party(PCC) . peated on every European stop, along with the argument that The Communists are active inside Colombia as well. On "We will not permit Colombia to be turned into the Vietnam Oct. 25, the PCC newspaper Voz said editorially that "the of a war against drugs in Latin America." alliance of important sectors of the drug trade with militarism At the conclusion of his European tour, Samper descend­ is the principal obstacle to a negotiated political solution to ed on neighboring Venezuela, where he joined with his fel­ the national crisis." On Oct. 26, all the leaders of the Patriotic low drug-lobbyist Gabriel Garci Marquez in a meeting with Union-the electoral arm of the narco-Communist Revolu­ Venezuelan President Carlos Andres Peerez, and promoted tionary Armed Forces of Colombia (FARC)-published a his arguments for surrender to the mafia in numerous press statement opposing the extradition of drug traffickers , using interviews. Asked at a Caracas press conference what he is the mafia's own argument that "extradition violates national doing to guarantee a victorious war against the drug cartels, sovereignty and allows extraditables to be given sentences Samper responded: "Once upon a time, a French colonel (at not considered within Colombia's legal guidelines. " war with England) said he would fight until the last Briton And on Oct. 29, the The Washington Post published a was dead. . . . I cannot say that we will fightthe war against front-page article supporting the notion of dialogue with the the drug trade until the last Colombian is dead." Journalists Colombian drug cartels, and arguing that "the war will never at the conference were heard to ask each other whether Samp­ be won until consumption inside the United States is con­ er's simile meant he was on the side of the drug traffickers, trolled." The article also lies that "if Barco continues to lose or of Colombia. support between now and next May's (presidential) elec­ Gabriel Garcia Marquez, Colombia's Nobel laureate who tions, and offers no new results, such as the arrest of (cartel resides in Mexico, has joined forces with the Samper/L6pez chieftains)Escobar and Rodriguez Gacha, it will be still more campaign. A long-standing advocate of drug legalization, difficultfor his successor to continue with a hard line" against Garcia has not only publicly appeared with Samper during the drug trade. his Venezuela tour, but has just published a lengthy article­ The Post's message to the drug traffickers is clear: hang appearing, among others, in publications of Spain, Mexico, on until the next President comes in. If it's Samper Pizano, Venezuela, and Colombia-accusing the United States of you're home free.

ElK November 17, 1989 International 47 an Community, for example, proposes to Colombia a Mar­ shall Plan similar to that being proposed to Poland. 3) Finally, with 40 million drug consumers in the world, the war on drugs cannot be an effort directed only toward the producing countries, but must be accompanied by a similar war in the SamperPi zano flails consumer countries. While we can hardly attack such proposals, which in in Europeantour themselves could be useful, the lack of will to fight the war against the mafia seems to plague this presidential hopeful. Samper said several times in Paris, and elsewhere in Europe, by Our Paris Bureau that if the war on the mafiais not successful, "the only alterna­ tive is legalization." That the problem of drug legalization is Presidential pre-candidate for Colombia's Liberal Party, Er­ not a moral issue for Samper but a technical question became nesto Samper Pizano did not exactly get the red carpet treat­ clear afterhe stated several times that the problem of legaliza­ ment when he visited Paris at the end of October. Samper, tion cannot be dealt with as a "unilateral" problem because whose spokesmen in Colombia pretended would be meeting there is the producer and the consumer end. The solution can with President Fran�ois Mitterrand, was only able to meet only be "multilateral," he stated, showing his willingness to "functionaries" at the interior and foreign ministries, as well legalize if all such technical conditions are fulfilled. as party representatives. Samper's image as a drug fighter was not convincing to One can only suspect that despite all his efforts to appear many. The first question shot at him by a journalist from as supporting Colombian President Virgilio Barco's war on Radio France International was "Mr. Samper, in the past you drugs, Samper's reputation as the head of the pro-drug legal­ were associated with the pro-legalization lobby. Can one ization lobby of Colombia was too strong for anybody impor­ interpretyour remarks from today as meaning that you have tant to meet with him. changed your line?" After Samper professed that this was Many journalists, mainly fromThero-America and Spain, indeed the case, Christine Bierre , president of the Anti-Drug but also from France attended his press conference at the Coalition in France, said she was a bit astonished to hear Latin American House. All had received a press communique about this sudden change of line, since she had received from the French Anti-Drug Coalition recounting Samper's information concerningan interview he granted to RCN Ra­ career as the head ofColomb ia's pro-drug legalization effort. dio just after the murder of Galan, rather than supporting Between 1977 and 1980, Samper headed the Association of Barco's emergency measures, Samper had criticized extradi­ Financial Institutes of Colombia (ANIF) , which he described tion of indicted drug criminals, had called for a dialogue in public statements as the "Latin American coordinator for with the gangsters, and had finally declared that the only the International Cannabis Alliance for Reform (ICAR)." In alternative to not winning the war against drugs, would be 1982, while Samper was campaign manager for ex-President legalization! Alfonso LOpez Michelsen, Carlos Lehder, one of the leaders Ernesto Samper Pizano was quite furious at being "un­ of the Medellin Cartel, said he contributed a million pesos to covered" and just kept repeating that he had never made these the LOpez campaign! statements and demanding that Mrs. Bierreread actual quotes After the murder this past August of frontrunner Luis from him, if she had them. Christine Bierre proceeded to Carlos Galan, however, Samper Pizano became a top con­ read the exact quotes from his speech, while pandemonium tender for the Liberal Party's presidential nomination, and broke out in the room with several aides to Samper denounc­ this seems to have led to some changes in his speech. The ing the Anti-Drug Coalition as having been founded by Lyn­ purpose of his European trip, he said in his press conference, don LaRouche, an American statesman currently in prison. was to discuss Colombia's problems, in particular the war Many of the questions which followed, however, were on drugs, with political figures. Samper, who paid lip service aimed at trying to pin down the "ambiguous" Mr. Samper: to Barco's war on drugs throughout his remarks, demanded "What kind of drug policy will you conduct if you are elected that a "global" approach be taken in this war, to include three President?" "Would you favor investigations into the links main points: 1) Military aid must be "redirected" toward to top-level government and other elected officials and the equipment useful to an "intelligence" war, not toward a brute drug runners?" "What would you do if you found your chil­ force war. Colombia needs electronics surveillance equip­ dren consuming cocaine?" While Samper pretended he was ment, sophisticated bomb detectors, etc. 2) Samper demand­ against drugs, when Christine Bierre asked him if he would ed financialand economic aid not only for the "war on drugs" legalize in the case "prohibition" against drugs stopped in the but also for the "peacetime." Huge costs incurred in the consumer countries, this chameleon who otherwise dared to course of the war and because of the destruction of the war denounce the "moral" evil of drugs, immediately stated that economy can be counterbalanced, he said, only if the Europe- in that case, he would be in agreement with legalization.

48 International ElK November 17, 1989 mise, accepting life under Syrian control as the "lesser evil." Not accidentally, the Vatican's turnaboutcoincided with most of the Vatican diplomats being hectically involved in talks with the Moscow regarding Mikhail Gorbachov's up­ coming visit to Italy, to the end of negotiating a consensus Free Lebanon over the Catholic communities in the East bloc countries. On the morningof Nov. 4, the Papal nuncio transmitted to Prime urvi Minister Gen. Michel Aoun, a Papal message urging Leba­ fights for s val nese Christian unity, and advocating that this was the time for "necessary concessions." by Thierry Lalevee France's posture is no better, with both the ruling social­ ists and the conservative opposition supporting the Taif ar­ Unfortunately, historical comparisons abound to describe rangements. Opposition leader Jacques Chirac went even what happened on Nov. 4, when a group of aging Lebanese further, calling on the French government to use all "means parliamentarians, under the protection of Syrian intelligence, available to the state" to pressure Michel Aoun to submit to and claiming to represent Lebanon's national and sovereign the Syrian puppet government. Such a posture smacks of interests, appointed one of their colleagues as Lebanon's new double-dealing, and may be connected to the Gaullist party's President. The best comparisons may be the elections held contacts with Syria to obtain the release of the French hos­ by the Soviet Union in occupied Eastern Europe in the late tages. 1940s, or the discredited parliamentarians of the French The French government seems to have acted from the Third Republic who gave power to Philippe Petain to make same motivations, fed by fears that the bombing of a French peace with Hitler. passenger jet on Sept. 19 may be followed by additional Completing the cynical farce is the person they chose, terror activities on French territory directly. Rene Moawad. The most diplomatic among Lebanese ob­ servers have described him as an "affairist"; others have Who will support a puppet? spoken bluntly of his swindles while he was chairman of the However, events since the Taif agreement show that Gen­ parliament's finance committee, and of his role in the drug­ eral Aoun has good reason to continue resisting Syrian occu­ traffickingactivities of former President Suleyman Franjieh. pation. Few Lebanese in their right mind consider Rene Moa­ This farce has received the political and spiritual bless­ wad as a serious President. He is a Syrian puppet and nothing ings of all the major international powers, ranging from the else. The firstone to congratulate him was Syrian intelligence United States to the Soviet Union and France, and even the boss in Lebanon, General Ghazi Kiana'an, the man who ma­ Vatican. Each power had its own divergent reasons for doing nipulated the Abdallah brothers during the 1986 terror wave so. Washington's message of congratulation to the newly in France. Moawad's first political consultations were held elected President was the least surprising; It was the end­ on Nov. 8 in Damascus, where he was not even considered result of more than a decade-long policy guided by Henry important enough to meet with President Hafez aI-Assad, but Kissinger and aimed at courting Syria's favor, both within only with Vice President Abdel Halim Khaddam. the context of the American-Soviet entente, as well as on the Communiques from the meeting indicate that Damascus delusion that Syria could play a "constructive role" in solving is now waiting for an official appeal from the so-called "legit­ the Israeli-Arab conflict. Likewise, Moscow's behavior does imate government" to launch a new military assault against not require much explanation. Whatever tension may exist East Beirut and the areas controlled by Michel Aoun. between Moscow and Damascus, Syria remains firmly in Yet, there are several factors to consider. For their own the Soviet camp, and Syria's victories strengthen Moscow's tribal reasons, Syria's Druze and Shi'ite allies are opposed power and bargaining position. to the Taif agreement. In the finalana lysis, Syria is obviously What of France and of the Vatican? Certainly, its sudden concerned that the "political process" set in motion by the turnabout has been felt more painfully by most Lebanese, Taif agreement-i.e., a two-year deadline after which the who took it almost for granted that both powers would remain Syrian presence will have to be questioned, does not reach on their side. It seems that Lebanese Maronite Patriarch Nas­ maturation. rallah Sfeir had a personal hand in influencing the Vatican Hence, despite all odds, Michel Aoun and Lebanon do hierarchy to support the agreement which the parliamentari­ have a chance of survival, given their ability to play on these ans made in Taif, Saudi Arabia. Whether this was prompted obvious divergences among Syria's so-called allies. The es­ by the fear that refusal to do so would mean further and sence will be time, and Aoun's ability to survive bC'th the devastating massacres, or by more sinister motivations, re­ immediate attempts at assassinatinghim , an upcomir: mili­ mains to be seen. In any event, Sfeir does not seem to have tary assault, and a period of siege and of blockade of the been able to master the events, and chose the route of compro- regions under his forces' control.

EIR November 17, 1989 International 49 telli, " an agreement which laid the basis for beginning discus­ sions on how to restore dignity to the armed forces.

Pardon nullified The effect of the decision to retire the nationalist leader and several other officers is to nullify Menem' s pardon of Argentine generals those who, like Seineldfn, have fought to defend the institu­ tion of the armed forces and the Constitution. There are few retire Seineldin officers who can make the claim that the colonel did recently, when he stated that "I have always been a defender of the constitutional order." General Caceres was forced to admit by Cynthia R. Rush in a Nov. 2 speech before a group of officers that Seineldin had effectively helped to prevent "the Lebanon-ization of the The high command of the Argentine Army has completely country." ignored the recent pardon granted to military officersby Pres­ The only real beneficiariesof the pardon are the terrorists ident Carlos Menem and forced the retirement of Col. Mo­ like the Montoneros, who waged savage war against the hamed Ali Seineldfn, leader of the Army's nationalist wing. nation in the mid-1970s, and those officers who On Nov. 1, Army Chief of Staff Gen. Isidro Caceres an­ "disappeared" thousands of citizens during the same period. nounced the decision of the Army's Promotions Board that An article in the Nov. 2 issue of the Buenos Aires daily La Colonel Seineldfn would be retired because he was "unfit to Prensa reported that Army nationalists are commenting that continue in active service." The colonel will also reportedly the decision to retire Seineldin should "be contrasted with be subject to 60 days in jail, as punishment for violating the case of the subversive delinquents, the 'Montoneros,' specificArmy regulations. who, with the pardon, fully recovered the capacity to exercise On Oct. 6, President Menem granted a full pardon to their rights as citizens, while with the military, the opposite Seineldfn and 180 other officers who had been involved in is the case; they are punished for doing their duty." military action against the policies of Menem' s predecessor, Seineldin's promotion to the rank of general, for which Raul Alfonsfn. Also freed fromja il at that time were several he was eligible in December of this year, has been the object leftists who had participated in armed warfare against the of an intense fightwithin the Army during the last year. The government during the 1970s. Menem told the Argentine nationalist colonel, a hero of the 1982 Malvinas War, is people that the pardon was necessary to achieve the "recon­ widely respected by especially middle-level officers for his ciliation of the nation," whose recent history has been marked efforts to halt the dismantling of the armed forces demanded by civil strife and economic chaos. by the U.S. "secret government" and Project Democracy The reasons cited by the Promotions Board for retiring apparatus. These latter groupings see the existence of any Seineldfn are the very grounds on which Menem pardoned independent political or military movement in Ibero-America him. The board charged him with having abandoned his post as an obstacle to their "New Yalta" deals with the Soviet in Panama "without authorization," "entering the country Union. U.S. policymaking circles, particularly those associ­ clandestinely," and "acting contrary to regulations against ated with former Secretary of State Henry Kissinger, have the government's military policies." lobbied hard for the removal of Seineldin from active duty. These charges refer to Seineldfn's December 1988 at­ Seineldin has said publicly that he will not contest the tempt to force the Alfonsin government to reverse its anti­ retirement order, "for the sake of the unity and cohesion of military policies and restore dignity to the armed forces. The the Army." The Buenos Aires correspondent forthe Mexican colonel leftPanama, where he was serving as military attache daily Excelsior reported that Menem is considering naming and adviser to the Panamanian Defense Forces, and returned Seineldin to head up an elite rapid deployment force to com­ to Buenos Aires, where he briefly led troops in a takeover of bat drug trafficking and subversion. The elite team would the Infantry School at the Campo de Mayo Army base, and reportedly be made up of officers from all three branches of subsequently at the Villa Martelli Army base. The action was the armed forces. taken to publicize the demand that then-Army Chief of Staff While there has been no officialconfirmation of this fact, ' Gen. Jose Dante Caridi resign his post, and that the Alfonsin in comments to the press made on Nov. 5, President Menem government make changes in its policies toward the armed emphasized that Colonel Seineldin "was retired by the Army, forces. but not by the Argentine people. He belongs to the people, The action came to a peaceful conclusion, following and if the governmentneeds him, it will require his services." Seineldin's meeting with General Caridi, who subsequently In Argentina, the President said, "everyone, absolutely ev­ resigned and was replaced by Gen. Isidro Caceres. Caceres eryone, is called upon to work for the greatness of the Father­ was the guarantor of what was called the "Pact of Villa Mar- land and the happiness of the Argentine people."

50 International EIR November 17, 1989 with the North Koreans was the subject of withdrawal of U.S. troops from South Korea, but he refused to elaborate. "The U.S. and the Soviet Union are greatly expanding their contacts with the North and South of Korea--evidence Korean's ettlement' that the trend of detente initiated mainly from Europe is rushing toward the Korean peninsula," reported the South Korean newspaper Hangyore Sinniun, a pro-opposition dai­ may be in theworks ly, on Nov. 2. In recent months, Moscow, which does not have diplomatic relations with Seoul, firstsent Georgi Arba­ by Lydia Cherry tov, director of Moscow 's U.S.A. and Canada Institute. Next came Soviet Vice Foreign Minister Mikhail Kapitsa, and Numerous behind-the-scenes meetings which took place in most recently, the third week of October-coinciding with Beijing the week of Nov. 6 are believed to have revolved the Sigur's visit to Seoul-Viadlen Martynov, director of the around the future of the Korean peninsula and Eastern Eu­ Soviet Institute for the World Economy and International rope. Reliable Taiwanese sources say that a four-hour meet­ Relations (IMEMO). ing took place between Henry Kissinger, North Koreanhard­ liner Kim II-Sung, and senior Chinese leader Deng Xiaoping, Korean opposition takes initiative who stepped down from his last official party post Nov. 9. In each case, the contact point for Moscow in South Also in Beijing-though reports are unclear ifhe attend­ Korea has been Kim Young-Sam, who heads the Reunfica­ ed that meeting-was the foreign minister of Bulgaria, Petar tion Democratic Party, and is one of three "Kims" heading Mladenov, who was named Bulgaria's new party chief on opposition parties who in recentweeks have joined forces to Nov. 10, replacing hard-liner Todor Zhivkov. Officially, attempt to bring down the Noh Tae-Woo government. The China is denying the meeting took place, insisting that Kim three opposition leaders, Kim Dae-Jung, Kim Young-Sam, II-Sung left Beijingbefore Henry Kissinger arrived on Nov. and the supposedly more conservative Kim Chong-Pil, hud­ 7. But earlier, the Chinese were denying that Kim II-Sung dled together Oct. 19 when President Noh was visiting the was in Beijing at all. All Chinese media sources have been United States to impress upon President Bush and Congress mum on the Kim II-Sung visit which was reported by Japa­ that arbitrary U.S. troop cutbacks would spell disaster. The nese news services, quoting reliable sources in Beijing. three Kims, who seldom agree on anything, announced that Beijing has been the scene of at least four rounds of in concert they would bring down �e government and keep contacts between "influentialdiplomats" of the United States legislation stalled in parliament unless the ruling party agree and North Korea in the last year. Such diplomacy has in­ to "the thorough liquidation of the [previous] Chon do-H wan creased in frequency and tempo since James Lilley, who government," and to the release of pro-North Korean dissi­ previously served as U.S. ambassador to South Korea, was dents who have been attempting to negotiate a Korean settle­ named ambassador to the People's Republic of China in May, ment with North Korea behind the government's back. and even more so since Bush insider Donald Gregg was This opposition consolidation against the governmenthas finallyconfirmed as ambassador to Seoul in early September. moved still further, according to the Korea Times Nov. 1, with a decision by Kim Young-Sam's Reunification Demo­ U.S. unilateral action on Korea cratic Party and Kim Chong-Pil' s New Democratic Republic U.S. diplomacy to North Korea culminated during the Party to merge. According to Yi Sang-Su, an unhappy last week in October with a visit by Gaston Sigur, formerly spokesman from the third opposition party, the Party for the State Department's top officialon Asia. Afterthe suppos­ Peace and Democracy, "The two partiesare said to be merged edly "unofficial" seven-day visit to Pyongyang, Sigur went into one. Now I must sink to being the spokesman of the to Seoul where he announced: "I came away firmlyconvinced second oppositionparty . " that the paramount goal of the D.P.R.K. [Democratic Peo­ In early October, Kim Chong ..Pil , who previously was ple's Republic of Korea] is to reunify Korea, and it was aligned with the ruling camp, began turning on Noh Tae­ emphasized to me that this was to be achieved throughpeace­ Woo, harshly criticizing him for his supposed lukewarm atti­ ful means." Sigur, however, did acknowledge that Ho Tam, tude in solving "Fifth Republic problems." Kim Chong-Pil, chairman of the North's "Committee for the Peaceful Reuni­ according to Seoul publication Iryo Sinmun Aug. 13, is a fication of the Fatherland," at least indirectly admitted that close friend of Donald Gregg, and met with Gregg when he the incident in which the Korean Airlines (KAL) passenger visited the United States last February. Iryo Sinmun notes aircraft was shot down in September 1983 occurred asa result that Kim beca..'lle a "very good friend of Gregg during his of North Korea's manipulation, the Seoul newspaperHanguk stay in Korea from 1973 to 1976. Political observers believe Ilbo reported Nov. 1. Sigur acknowledged to a Tong-a-Ilbo that they met regularly while Kim was prime minister from reporter Oct. 30 that the most important issue he discussed June 1971 to December 1975."

EIR November 17, 1989 International 51 Indian voters to choose between Gandhi, and no government at all by Ramtanu Maitra and Susan Maitra

On Oct. 17, Prime Minister Rajiv Gandhi brought months of Lok Oal, minus their respective rumps, has found it extremely speculaton to an end with the announcement that the ninth trying to keep both the Communists and the Bharatiya Janata elections to India's lower house of parliament, the Lok Sab­ Party within an electoral alliance (the BJP is the party of the ha, would be held on Nov. 22, 24, and 26. The announcement Hindu zealots who proclaim the need for a Hindu Rashtra. a allowed the Election Commission sufficient time to issue state that follows the precepts of Hindu religion.) Janata Oal notificationto the parties and give the contestants the stipulat­ leaders were goaded by the fact that the BJP has been gaining ed 31 days notice. Gandhi also said that all Lok Sabha seats ground significantly inMadhya Pradesh (40 Lok Sabha seats), will be contested on those threeda ys, except for the 14 seats Rajasthan (25 seats), Gujarat (26 seats), and Maharastra (48 in the state of Assam, because its electoral rolls arenot ready. seats). But even if electoral arithmetic made the seat adjust­ In all, 529 Lok Sabha seats areup for grabs. Assam, with ment with the BJP a priority, the J anata Oal could not afford 14 Lok Sabha seats, will go to the polls in the firstor second to let the Communists ally with the Congress-I because of the week of January.A numberof states, including UttarPrade­ Communists' decisive strength in West Bengal (40 seats) and sh, Andhra Pradesh, and Karnataka,will also have legislative Kerala (20 seats). Thus, it became evident from the outset that assembly elections along with the Lok Sabha elections. the Janata Oal would have to make as many seat adjustments The alternativefacing Indian voters is between Gandhi's as possible in the Hindi belt, because it has been historically Congress-Iparty and no government at all, since the opposi­ proven that whoever wins big in the Hindi belt controlsNew tion consists of an unviable amalgam of dissimilar and con­ Delhi. Support of the Communists in the east and south is tending political forces and constituencies. An opposition more important in a negative way-to prevent their alliance victory would increase the instability of the nation, thereby with the Congress-I. weakening India's sovereignty, its defenses, and its domestic The ideological differences between the Communists and programs. the Hindu zealots have been a subject of much dismay to the It is widely acknowledged that Gandhi's announcement opposition leaders, who were eager to proclaim "opposition caught the opposition on the wrongfoot. Apart from the fact unity," and may yet sink the opposition effort . CPI-M leader that the tenure of the present government would expire by and chief minister of West Bengal, Jyoti Basu, and the veter­ the end of the December in any case, for the last two years, an CPI-M leader fromKeral a, E.M.S. Namboodiripad, have as a corruptionscandal involving the Bofors gun deal bubbled repeatedly made speeches targeting the BJP as enemy num­ around the administration, the opposition leaders have been ber one. Speaking from the other side of the mouth on other demanding the instant resignation of Rajiv Gandhi. One occasions, the same leaders proclaimed that the firstpriority would hardly expectsuch demands to bemade without some was to oust the Congress-I and Rajiv Gandhi. Confusion was preparations for going to the polls at a short notice. This further enhanced when the Congress-I, buoyed by Basu and is, it must be. said, illustrative of the elementary credibility Namboodiripad's anti-BJP speeches, began to woo the Com­ problem that continues to dog the opposition. munists by raising their attack on the BJP one more decibel. In spite of the halting start, however, by Oct. 31, the last The BJP, for its part, has been enjoying its place under the day for filing nominations, the opposition had managed to sun, and has not hesitated to make perfectly clear to the J anata unify at the top level, a qualificationof some significance as Oal that the party is willing to discuss seat adjustments, but we shall see-leading to a two-party contest in most of the if such talks fail, arequite happy to go it alone. Hindi belt. The final list of candidates showed that the Janata A case in point is the NJP's stance on the Ram Janamb­ Oal will be contesting 240 seats, Bharatiya Janata Party (BJP) hoomi issue. In Ayodhya, UttarPrade sh, it is said that Lord 205 seats, Janata Oal's other constituents of the National Ram was bornthere. Hindu fanatics claim that the firstMugh­ Front (not a party) 75 seats, and the Communists (of two al emperor, Babar, in the 16th century had leveled Lord kinds-CPI-M and CPI) 122 seats. In about 400 constituen­ Ram's temple and built a mosque instead at that location. cies, electoral contests will be one-to-one between the Con­ The dispute is an old one, although very little historic docu­ gress I and the opposition with electoral alliances. mentation exists to back up the Hindu claim. British rulers, The Janata Oal, a combine of the Janata Party and the by means of court orders, had to cool the issue out. But the

52 International· EIR November 17, 1989 TAB�E 1 Statewise lok Sabha seats: 1989 How the Hindi Belt voted in previous elections

State 1967 1971 1917* 1980 1984

Haryana (e) 7 7 0 5 10 (0) 2 2 10 5 0 UttarPradesh (C) 47 73 0 51 83 (0) 38 12 85 34 2 Bihar (C) 34 39 0 30 48 (0) 19 19 54 24 6 Rajasthan (C) 10 14 1 18 25 (0) 13 9 24 7 0 Madhya Pradesh (C) 24 21 1 35 39 (0) 16 19 39 5 1

(C) =CongressiCongress-1 (0)= Non-CongresslNon-Congress-1 *In 1977, there was an electoral sweep by the Janata Party-a combine of Bharatiya Lok DaI, Jan Sangh, Congress (0), and the Socialist party.

BA Y OF BENGAL

ANDAMAN ANDCD NICOBAA • . . I '. ISLANDS (1 CD LAKSHADWEEP * Assam has 14 Lok Sabha seats, but will not be going to the -. polls at this time due to unsettled conditions in the state.

subject was opened up in 1986. Hindu fanatics demanded early years, the party has been able to attract individuals with that the mosque be demolished and Lord Ram's temple set differing ideologies into the party, because of its relaxed up at the same location. BJP provided the political backing Qrganizational structure and ability to respond to almost all and began using the issue to organize its backers. The dis­ segments ofIndia's population. Since independence in19 47, pute, since 1986, has unleashed waves of communal violence the party has gone through a transformation and particularly throughout the Hindi belt, killing hundreds of people. so during the tenure of the late Mrs. Indira Gandhi, India's Although the Hindu zealots have since given up their third prime minister, when the party split twice and the main­ demand to demolish the existing mosque, they are now in stream came to be known as the Congress-I ("I" for Indira). the process of setting up Lord Ram's temple less then 100 Yet some basic characteristics, of the party remain the yards from the mosque. The BJP has used the issue as a same as before. The party still appeals to the minority com­ political campaign and has thrown all the opposition leaders munities-be they religious or within the Hindu caste sys­ into total disarray. tem, individuals with a progressive outlook andwith a mild dose of populistic ideology-and also the poor. The Con­ Who is in the fray? gress-I organization is controlled from thetop, but because The rulingCongress- I party, which has controlled India's of its massive size, many local baronsand powerbrokers have central governmentsince 1947 for all but a brief three years, continued to flourish as always. In some states such as West is perhaps the only national party in the country. Formed in Bengal, the CPI-M has made it a minorityparty; in the south, 1885, Congress Party was in the forefront of the indepen­ regional parties, such as the Telegu Desam in Andhra Pra­ dence movement against the British colonialists. Since the desh, DMK and ADMK in Tamil Nadu, and ideology-cen-

EIR November 17, 1989 International 53 tered parties such as Janata Party in Karnataka, have pushed riority in the Hindi belt, making minority communities un­ the Congress-I from the premier position. Still, the Congress­ easy. In recent years, it seems, it has been able to rouse the I remains a force to reckon with in all these states with a 25% Hindi chauvinists, and if noise and din are indicators, BJP vote bank which just does not seem to go away. will do well in the coming elections. But it is in the Hindi belt where the strength and weakness BJP cadres and organizers, more than the leaders, are of the Congress-I are exposed to the full. In 1977, the year ideologues who believe and preach that India must be a nation Congress-I lost control of the seat of power, the party secured whose socio-political setup reflects Hindu ideology. Using only two of the more than 200 seats it contested. In 1984, when Hindu mythology effectively, the BJP tries to evoke the Prime Minister Rajiv Gandhi came riding on the back of the memory of the "superior" Hindus and their innate relation­ Hindi belt to a triumphant victory, the party captured 212 of ship with the glories of ancient India. the 22 1 seats. It is in this Hindu belt that the Congress-I has strength. While Orissa and the northeasternstates have strong The economic issues at stake Congress-I bases, the CPI-M is expected to give it a bloody The 1989 elections seem to be a hodge-podge, at least, nose once again in West Bengal. Similarly, in the the west, to observers of the campaign. The opposition is vociferously Maharashtra will vote overwhelmingly Congress-I. Gujarat, complaining that the Rajiv Gandhi administration is the most however, may not do the same. Guj arat is another state where corrupt that ever governed. In retaliation, the Congress-I is the BJP has grown significantly in the last few years. accusing the opposition of being soft toward communalism Congress-I will face its strongest opposition in the Dal­ and terrorism, which are tearing the country apart. While the a party which, with the exception of the state of Karnataka, population neither condones corruption, nor likes anyone has focused its entire strength in the Hindi belt. The Janata being softon terrorism and communalism, people generally Party, part of which joined the main segment of the Lok Dal believe that what they are hearing is simply election rhetoric. to fonnthe new Janata Dal, consists of socialists who leftthe The economy is the real issue, but it is not as straightfor­ Congress Party when they realized that the Congress Party ward as one might think. The Rajiv Gandhi administration would not allow any ideological group to dominate the party. took a strong stand to enhance the growth rate of the country's In 1977, the party saw its best days; since then it has been all economy. This has been achieved as the GNP growth rate has down hill. In 1984, Janata Party could muster only 10 Lok gone up significantly and so has the growth in the industrial Sabha seats (4 of which came from Karnataka) and its top sector. This was done by liberalizing import of various fin­ leaders such as Chandra Sehkhar and George Fernandes were ished and intennediateprod ucts, modernizingsome industri­ soundly beaten in and outside of their turf. Its present incarna­ es and deregulating and de-licensing a whole range of indu­ tion as the Janata Dal is based on the support of the north stries. However, due to an inadequate infrastructure, which Indian farmers and certain castes such as Rajputs and Tha­ has continued to remain inadequate, and an inadequate rise in kurs, in addition to the worn-out socialists. While the party productivity in the public sector and in the large agricultural leaders swear allegiance to the socialistic fonn of economy, sector, the country's economy is far from healthy, faster it is more than likely that what they mean is to enhance rural growth notwithstanding. India's foreign debt has gone up allocations through the existing planning process. quickly and steadily; foreign exchange reserves have come Lok Dal, the Janata Dal's other constituent, is a party of down to 15 weeks of import costs; and the prices of some well-off farmers with a strong rural bias. The party lost all basic foodite ms, in spite of the fact that the country experi­ but two seats in 1984 and was heading toward oblivion after enced two bumper food crops in a row, have gone up signifi­ splitting into Lok Dal (B)-captured by a socialist, the late cantly. More importantly, because of weak infrastructure H.N. Bahunguna-and Lok Dal (A)-under an MIT-educat­ facilities, wealth generated through the increased growth of ed computer scientist, Aj it Singh, whose father, the late the GNP continues to be accumulated among a few. The Choudhury Charan Singh, was an old Lok Dal patriarch and result: a widening gap between rich and poor. prime minister of India for a few weeks. But the rise of Devi Not unaware of this disparity, the governmenthas made Lalin Haryana following his sweeping victory in the state as­ many gestures which have resulted in channeling more mon­ sembly elections in 1986 gave the party a second lease on life. ey into the rural sector, without necessarilycreating produc­ There is no doubt that Devi Lal, a rustic farmer with a tive assets. These measures perhaps more than any other militant posture and higher ambitions, and V.P. Singh, once single factor, have fed the inflationary flame. Two more the number-two man in the Gandhi cabinet, until he resigned populistic programs, the Jawahar Rozgar Yojana and the from the party in 1987 protesting government corruption, Nagar Palika Bill, which would have funneled a little more have brought life back into the opposition. Their initiatives money to the rural sector, got bogged down by the intransi­ and spade work helped in the fonnationof the Janata Dal. gence of the opposition and did not make it through the The thirdforce is the BJP, which has grown significantly parliament. In this confused milieu, both the Congress-I and since 1984. Backed by a highly motivated and organized the opposition are trying to exploit each other's failures. cadre fonnation, theRS S, theBJP has promoted Hindu supe- While theopposition is keen on blaming the Congress-I for

54 International EIR November 17, 1989 differences on pending legislation with the Lok Sabha, the Rajya Sabha has to have a joint sitting with the Lok Sabha and iron out the differences. Although the members The Indianparliamentary of both houses have one vote each, the Council of Cabinet Ministers is made collectively responsible for the Lok system: how it works Sabha. As against 542 seat in the present Lok Sabha, Rajya Sabha has 246 seats. The Indian parliament, set up as a cross between the Brit­ The prime minister, leader of the Council of ministers ish and American models, consists of the Lok Sabha elected by the elected parliamentarybody of the majority ("House of People" or lower house) and Rajya Sabha party or coalition of parties, is responsible for the day-to­ ("Council of States" or upper house). Members of the Lok day running of the government. Like the British prime Sabha are elected directly by the people every five years, minister, the Indian prime minister is highly visible. unless the ruling party or coalition loses its majority. In Nonetheless, the power that the Indian President wields such a case, elections for a new Lok Sabha are held follow­ is extemely broad. Included among his functions is the ing the collapse of the government. In 1980, only three power to appoint the prime minister, cabinet ministers, years after the general election of 1977, the J anata Party judges of Supreme Court and the High Courts, and other lost its majority in the Lok Sabha and a new election was important central officialsand members of commissions. held. The President is also required to approve or disapprove Apart from several which the President appoints, all bills passed by parliament, including money bills, and members of the Rajya Sabha are elected (on the basis of bills passed by state legislative assemblies under specified population) by the elected members ofthe state legislative conditions. The President, who is elected indirectly by assemblies. Every two years, one-third of the Rajya Sabha the elected members of both Houses of Parliament and of is reconstituted. The Rajya Sabha functions as the repre­ the State legislative assemblies, is vested with all execu­ sentative of state interests in the center. Unlike the Lok tive powers, including the supreme command of the de­ Sabha, the Rajya Sabha cannot be dissolved. In case of fense forces.

the rise in prices, the Congress-I has unleashed strong attacks but the voters are also aware of the large-scale corruption in­ on the opposition for blocking the legislation which would volving some of the oppositionleaders . have transferred "power to the people." In fact, there are hundreds of factors that account for the election of a particular candidate from any constituency in Who will win? India: The candidate's personalreputati on, his or her family While the price rise and charges of corruption are serious connections, the caste the candidate belongs to, religious and and may sway some voters, the Congress-I can more than caste composition of the voters, candidates' contribution to counter this by exploiting the deep-rooted fear and suspicion economic development in the constituency, the party the the people harbor about the Janata Dal leaders, who in 1977 candidate represents, are only a few. More importantly per­ involved themselves in a spectacle so bizarre and so danger­ haps, in rural areas, which make up 70% ofIndia, the village ous that most of them lost completely the respect of the headman decides on election eve how the village should vote. people. The spectacle was the intense struggle, following His words carry a lot of weight. All these factors can be the overwhelming defeat of the Congress-I, by almost every negated by a burning issue-such as the policy of forced Janata Party leader to pull the other down so that he could sit sterilization adopted by the Congress-I during the period of on the Delhi throne. People remember that some of those emergency rule, which decided masses of votes in 1977, or leaders are now actively promotingthe Janata Dal unity. This the public display of power greediness by Janata Party leaders is one of the ABCs of Indian politics that makes mincemeat in 1979 that sealed their fate in 1980. Under such circum­ of much overexcited analysis. stances, the Indian electorate, particularly in the Hindi belt, The foreign media's pronouncements, for example, that acts in a unified manner, and it is this that constitutes the corruption charges against Rajiv Gandhi by the opposition, "wave" that the opposition wishes to set into motion today. and that Defense Minister K.C. Pant's refusal to accept the But the people's lack of interest in the election campaign seat he was offered instead of the one he wanted to contest, shows that no "wave" has yet formed. And there is a reason are major indicators that the Congress-I is in trouble, are to be for it. It is not certain at this point that the seat adjustments dismissed out of hand. Corruptionis a serious enough charge, made by the opposition leaders in the quiet of the back room

EIR November 17, 1989 International 55 Congress, Bhagat is known for his capability to wield money and power. He is expected to win big from East Delhi. Buta Sinqh: Another political lightweight who has left his traditional state of Punjab and is seeking votes in India '8 senior politicians Jalore, Rajasthan. He may win because the opposition has in the election fray failed to back the candidate they had chosen. A.R. Antulay: The former chief minister of Maharas­ htra was in the wilderness for a while after he had left Congress-I party Congress-I. He is expected to win the South Bombay seat. Rajiv Gandhi: Contesting his old seat in Amethi, a rural easternUttar Pradesh (UP) constituency. He is going The opposition to win big. V.P. Singh: The projected prime minister if the Oppo­ P. V. Narasimha Rao: a political lightweight from sition wins, Singh has left the Allahabad seat he had won Andhra Pradesh who has chosen to contest from Ramtek, in 1988 and has found a safe seat in Fatehpur, UP. Excuse: eastern Maharashtra, the seat he won last time. Congress so that he can campaign for others and spend little time will do well in the state, and that is his hope. among his own constituency. He will win big. Vasant Sathe: A strong politician from eastern Ma­ Arun Nehru: A member of the Nehru family and a harashtra. Sathe will win his old Wardha seat but with a political lightweight. Left his seat to Sheila Kaul and went reduced margin. to the adjacent constituency of Bilhaur where Brahmin Balram Jhakar: A weak politician who has been fur­ votes may see him through. ther weakened by corruption charges. He is being chal­ Chandra Sehkhar: A perennial loser from Balia, lenged by the Haryana strongman, Devi Lal at Sikar. A eastern UP. He is now contesting fromBa lia as well as toss-up. from another constituency in Bihar. A big win for opposi­ Sheila Dixit: Belonging to an old Congress family, tion in the Hindi belt may carryhim through. Dixit is contesting from the historic Kannauj in central George Fernandes: A member of the Socialist Inter­ UP. She won this seat last time and will win again. national, the evergreen George is a loser. He lost two Sheila Kaul: A member of the Nehru family, Kaul is elections between 1984 and 1989. He is contesting from contesting from Rae Bareilly, UP-a seat of Mrs. Gandhi Musaffarpur, Bihar, a traditional stronghold of the social­ and later, of Arun Nehru. She is a winner. ists. Still, no hope. Rajesh Pilot: Contesting from Bharatpur where Con­ Devi Lal: The "Haryana supremo" is contesting from gress-I is in trouble, Pilot's ability to put together a strong three seats: Sikhar in Rajasthan, Rohtak in his home state, campaign may win him this difficultseat in Rajasthan. Haryana and Ferozepur in Punjab. Devi Lal' s venture into Madhvrao Scindia: Scion of the Gwalior royal neighboring states is to establish himself as a regional house, Scindia is a sure winner. leader and not simply a leader of a small state. Devi Lal H.K.L. Bhaqat: The "uncrowned king" of Delhi will win at least one seat, if not more.

will receive the enthusiastic support of the volunteers of each warily watching the show, not quite sure whom to vote for. party on the ground. In many cases, particularly in the Hindi In the absence oflast-minute surprises-not to be ruled out­ belt, wherever the Janata Dal contests the Congress-I in a such indifference is going to help the Congress-I and make straight fight, a significant chunk of BJP votes may not go to the task of the opposition that much more difficult. In the the Janata Dal candidate, but to the Congress-I. Similarly, present Lok Sabha, the Congress-I has a majority of about where the Janata Dal has given up the seat to the BJP to 143 seats (415 of 542), which is more than the entire opposi­ contest the Congress-I, a large section of the Janata Dal tion has at present. The opposition will have to win these 143 supporters, who strongly resent the Hindu zealots, will cast seats, which means it will have to do better than doubling its their votes in favor of the Congress-I candidate. This has score. Under the circumstances, the Congress-I can afford to happened before, and in the absence of a wave, will certainly lose as many as 130 seats and still come out with an absolute happen again. It is quite likely that the Congress-I will gain majority. Since the opposition has not clicked with its cam­ from straight fights as much as the opposition. paign, the task is uphill and time is too short. It is more than So far, neither the opposition nor the Congress-I's cam­ likely at this point that the Congress-I will enjoy another paign has touched any real chord among voters . People are tenure of fiveyears in Delhi.

56 International EIR November 17, 1989 and the P.R.C. was carried further by Suzanne Ogden, an Associate in Research at the Fairbank Center for East Asian Research at Harvard University. The way to gauge the degree to which Taiwan and the mainland might reduce their hostilit­ Is thishow China policy ies is to see the degreeto which they are both evolving into the same type of entity. Ogden opened her presentation by asking: is made in Was hington? "Key Question: Can we see similaritiesin Taiwan and P.R.C. in the evolution of political institutions and ideology from a by Lydia Cherry Leninist, democratic-centralized, revolutionary and authori­ tarian party to a more democratic system?" Both the Kuomin­ The Institute of Sino-Soviet Studies of George Washington tang and the Chinese Communist Party were "rigidly hierar­ University hosted a conference Sept. 15-16 entitled "Main­ chical, authoritarian, dogmatic, and elitist," she asserted. land China and Taiwan: Comparisons and Interactions." Par­ To be sure, Ogden indicated, the evolution into more ticipating were various academics, many of whom have a democratic forms has been more successful in the R.O.C., pipeline into policymaking, including through Gaston Sigur, which at least combines "Leninism" with an economic sys­ director of the Institute and former National Security Council tem that "promotes the values of liberal democracy in socio­ staff member and Assistant Secretary of State for Far Eastern political life." This is an exercise in Western "convergence and PacificAff airs. theory ," which the Beijing regime has been raving against The conference was organized to exchange ideas on how ever since the June 4 Tiananmen massacre. the People's Republic of China and the Republic of China The implication is that since the R.O.C. has been moving (Taiwan) might improve their bilateral relations, and how faster toward political liberalization, it will become more ac­ Washington might encourage such a development. In reality , commodating toward Beijing, which is positive. This was the conference's main accomplishment was to offeryet an­ underlined by ArthurHummel , a former U.S. ambassador to other demonstration of why the subject of "political science" Beijing, who asserts that "Taiwan no longer believes it can should be banned from thenation 's universities and replaced re-capture the mainland" and "Taiwan no longer thinks the with the study of universal history as defined by Friedrich P .R.C. will collapse." There were other references by confer­ Schiller and the classics. ence participants to the fact that a "neanderthal" faction in The method, presumptions, and conclusions of the con­ Taiwan that continues to believe the government of the ference were nonsensical. R.O. C. is the lawfulgovernment of the mainland, is receding. The most informative of the conference presentations The wishful thinking that ran as the unifying streak was that of June Teufel Dreyer of the University of Miami, throughout the conference was takellto the hilt by Chien Min­ an unofficial consultant of Sigur's who presented a short Mao, from the TaiwanInstitute ofinternationalRelations and history of the military relations between Taiwan and the now a resident at the Heritage Foundation. Hoping for a P.R.C. However, even Dreyer's presentation was rife with breakthrough in relations, he stated: "poli sci"-like definitions. She opened by "theorizing" that "The R.O.C. has been dependent on the P.R.C. 's blun­ "strategic interaction can be either cooperative or hostile in ders and irrationalities for breathing space. Future competi­ nature, and both cooperation and hostility may occur in either tion is based on both nations' efforts in rationalizing their active or passive forms." This is evidently the yardstick with political and economic systems to be smoothly incorporated which we will now view military hostilities between the into the world system, also, on Peking's avoidance of inci­ R.O.C. and the P.R.C. dents like the Great Leap Forward, the Cultural Revolution, Shortly thereafter, she states the basic assumption of the the Peking Spring, Anti-Spiritual Pollution, and the Tianan­ conference: "The most important source of discord" between men Square Massacre. The rigid zero-sum game, however, R.O.C. and P.R.C. "is each government's claim to be the might be gone forever." only legitimate government of one China, and to have admin­ To assess the reality of such hopes, we need only listen to istrative jurisdiction over each other's territory." In other the Beijing leaders themselves. In defending the Tiananmen words, obstinacy is the chief reason for the hostilities be­ Square "incident" against attacks from the West, Beijing tween the R.O.C. and the P.R.C. If only both sides would spokesman Yuan Mu stated Sept. 6: "The various principles cease being so stubborn, then the "discord" could be eventu­ and policies we are pursuing and the various measures we ally dissolved. have adopted, including putting down the counterrevolution­ With this assumption, the entire history of 20th-century ary rebellion in our country, are matters within the limits of China, the absolute irreconcilability of the ideas of Sun Yat­ our country's sovereignty. Countries with different social sen and Mao Zedong, and the brutal criminality of the Beijing systems have different concepts of value. This is an objective regime are simply swept off the table as so many irrelevancies. fact." The assumption that there is an identity between Taiwan Exactly.

EIR November 17, 1989 International 57 Since August, Japan has reported that many of the several thousand "boat people" reaching its harbors are actually from mainland China, and is preparing to send at least 700 people Who's responsible for back to China immediately. Britain's determination to forcibly repatriate at least Vietnamese refugees? 40,000 Vietnamese refugees before February-which will be the next calm sailing season---certainly smells of a deal with Beijing. The UNHCR spokesman said that Communist by Mary M. Burdman China is "desperate that the Vietnamese refugee problem in Hong Kong be solved by 1997." Britain has backed down to In Asia as in Europe, huge numbers of refugees are fleeing Beijing over Hong Kong. At the last meeting of the Sino­ their own countries-the greatest number since the end of British Joint Liaison Group in London in late September, the World War II. Tens of thousands of people have already fled British government made a "subtle" pledge to the P.R.C. Vietnam, where, according to reports in September, some negotiators that the Hong Kong governmentwill deal with the 10 million people faced starvation. Vietnam has been cut off outspoken opposition to Beijing there, Hong Kong sources from loans or aid from the International Monetary Fund or report. The Chinese demanded that Hong Kong disband the World Bank on U.S. orders, a spokesman for the U.N. High groups speaking out against Beijing, and keep tight control Commission for Refugees (UNHCR) told EIR . on the anti-Beijing press. While publicly rejecting the pro­ Most "boat people" have fled in the past year, and most posal, Britain actually acquiesced. of them have gone to the British Crown Colony of Hong Martin Lee is one of Beijing 's principal targets-for good Kong, which itself is watching thousands of its citizens pre­ reason. His view on the future of Hong Kong under Chinese pare to flee, afterthe reality of Hong Kong's future under the rule is, "Hong Kong puppets ruling Hong Kong," the London control of the People's Republic of China was made clear to Sunday Telegraph reported Nov. 5. He and Szeto Wah, the the population following the Tiananmen massacre of June 4. secretary general of the Hong Kong Alliance in Support of the The great problem is that both Vietnam and Hong Kong Patriotic Democratic Movement, which brought out 1 million are being shunted aside by the industrialized nations, the people in demonstrations supporting the Chinese students at United States and United Kingdom in particular, as Hong the end of May , were booted off the Basic Law Drafting Com­ Kong Legislative Council member Martin Lee states in his mittee by Beijing, which has complete control of the commit­ interview with EIR . British Foreign Secretary John Major, tee . Lee, whose father was a Kuomintang general who fledto with the full backing of Prime Minister Margaret Thatcher, Hong Kong from the Communists in 1949, told the Sunday announced on Oct. 24 that the U.K. governmentis preparing Telegraph that he decided to take a stand against China, when to repatriate all those Vietnamese refugees who arrived in he saw Britain back down to Beijing's demands, beginning in Hong Kong after June 1988, by force if necessary. Hundreds 1985, to control moves toward greater democracy in Hong of the some 57,000 refugees in Hong Kong, who have been Kong before 1997. In October, the Chinese National People's held for months in unsanitary, overcrowded conditions, have Congress warnedMartin Lee that he could be found guilty of demonstrated against forced repatriation, some going on hun­ sedition when Hong Kong reverts to Chinese rule after19 97- ger strikes to avoid being sent back. Malaysian Prime Minis­ a charge which carries the death penalty. Lee has stated his ter Mahathir Mohammad announced the next day that Malay­ commitment to staying in Hong Kong. sia is ready to send boat people back by force. Since 1986, the industrialized nations, especially the United States and Australia, have unilaterally reneged on Interview: Martin Lee the policy of guaranteed resettlement of all refugees from Vietnam, committing themselves only to take-over many years' time-"genuine" refugees, who can prove they fled political persecution, the UNHCR spokesman said. This leaves the nations of Southeast Asia to provide for the "eco­ nomic" refugees, or send them back home. There are some Hong Kong's dilemma 107,000 refugees from Vietnam in the region: 57,000 in Hong Kong, 23,000 in Malaysia, and the rest in the Philip­ Mr. Lee is a member of the Hong Kong Legislative Council. pines and Thailand. Thailand already has tens of thousands He was interviewed by telephonefrom Wiesbad en. West Ger­ of Cambodian refugees in camps on its borders . Free Asia many on Oct. 25. 1989. also faces another flood of refugees-from China. At least 100 people a day attempt to enter Hong Kong from the EIR: You have stated that the critical situation around the P.R.C., although almost all are caught and handed back. 57,000 Vietnamese "boat people" now in Hong Kong, is

58 International EIR November 17, 1989 being manipulated by the British government. temporary refuge, so as to ascertai� who are the genuine Lee: At the moment, the Hong Kong people and Hong Kong refugees and who are not. Then there is another principle, government are getting a very bad press, particularly in the under international law , that we cannot return them anyway, United Kingdom and the U.S.A. I am aware of numerous unless we are sure that they will not be persecuted back articles being written pointing out very clearly that we, the home. . . . U nfortunatel y, these messages are falling on deaf people of Hong Kong, would like the other free countries to ears. The people of Hong Kong are getting a little impatient, take us by the millions, because we do not like to be returned and they just want to get rid of them. to a Communist regime in 1997; yet at the same time, we are being "uncharitable" to the over 50,000 unwanted people EIR: Is not Hong Kong itself a refugee city? Some 2.5 from Vietnam-we would like to send them back to Vietnam million of its 5.5 million peoplecame from China since 1949. against their wishes, and returnthem to another Communist Lee: Yes, of course most of us are here because we have regime. run away from a Communist regime, or were born of such I am terribly worried about the reputation of Hong Kong parents . Hong Kong is a refugee city, but it is typical of the overseas, because that is going to result in these other coun­ refugee mentality that, once I am here, I don't want anyone tries not wanting to take more people from Hong Kong, and else to come. not giving us passports and so on. Yet I take the view that this is entirely the responsibility of the British government, EIR: Your solution would be action from the U.S. and Brit­ because the Vietnamese refugees and the problems they have ish governments? created fall within external relationsand must be a matter for Lee: I think they should take it collectively. All the govern­ the sovereign state, which is Great Britain. I have been trying ments concerned should put their act together, because this very hard to persuade the people of Hong Kong not to urge is a problem that will take years to resolve. I do not agree the Hong Kong governmentand British governmentto adopt with the mandatory repatriation policy. But unless this other the mandatory repatriation policy. proposal that I have described to you is taken on board, there My suggestion is that since the U.S.A. is so very much is no other alternative. against this program, the U.S. governmentshould either pro­ The U.S. government is taking a very illogical stance, vide the island of Guam, or arrange with the Philippines to because they agree with screening, in accordance with United provide a big island, so that all these boat people can be Nations practice. But those screened out, what do you do shipped safely to this island which can be used as a holding about them? There is no answer at all from the U.S.A. They center, and those who are found to be genuine refugees will are not willing to take them, not willing to provide an island, be taken by other countries, and those found not to be genuine and yet they say "no" to Hong Kong, when we want to refugees will be allowed to live and work on that island until repatriate them to Vietnam. the time comes that the Vietnamese economy can be put right The British government's attitude toward refugees can again, in which case they can all be sent home to be summed in a short sentence: They don't want them, and Vietnam .... they don't want to pay for them. So, today they are trying to The unfortunate thing about Hong Kong is that we are a send the Vietnamese people home, against their will, and in very tiny island, overpopulated [Hong Kong includes the 1997, they will be quite happy to hand us over to the Chinese most densely populated areas on Earth--ed.], and we have Communist regime. The trouble is, Great Britain is getting been paying for all of these people coming from Vietnam away with it. until half a year ago, when we decided we would not pay anymore. The British government is now paying, but even EIR: It appears that the Hong Kong colonial government is now the British government's total payment is less than one­ backing down to Beijing. The Political Adviser of Hong tenth of Hong Kong's payment. But at the same time, the Kong, William Ehrman, has said that Hong Kong will not British government has been telling various countries, the become a center of subversion against Communist China. U.S.A. and so on, on an "offthe record" basis, that it doesn't Lee: I don't think it is backing down. He is agreeing that really wish to pursue such an inhumane policy, but that it is Hong Kong must never be allowed to be used as a base of pushed into doing so by the people of Hong Kong. That puts subversive activities. I agree with him there . But, the point us in a very bad light indeed, and everybody puts the blame is, we are not being subversive at all in Hong Kong. We on us. are exercising our freedom of speech, we are criticizing the True enough, the great majority of the people of Hong Beijing governmentlike the rest of the world. But, of course, Kong do not see the serious implications for them. They we are too close to them, and we are being handed over to thought they could solve the problem by scrapping the policy them soon, so they are now trying to bully us into silence, of "first asylum." I told them, in vain, unfortunately, that even under the Brits, and we will not allow that to happen, even if we were to scrap that policy, international law still because we know only too clearly, that, if today I lose my requires us to take these people, at least by giving them freedom of speech, tomorrow, it is your tum.

EIR November 17, 1989 International 59 Reportfro m Rome by Antonio Gaspari

LaRouche slate tilts Rome elections ees-Freedom for LaRouche), run­ The electorate set the Greens back and rebuffe d the traditional ning for the firsttime in the notorious­ ly difficult, polarizedRoman electoral parties. "Freedom/or LaRouche" ran its firstslate . contest. The 5,000 votes given to this group are important, considering that parties with representation in Parlia­ ment and a national daily paper, such as Proletarian Democracy, only got T hree days after the Oct. 29 munici­ Party, thanks to the decline of the 10,000 votes. pal elections in Rome, precisefigures Communist Party, and to its own hefty The slate is a coalition between the on the percentages and preference financial resources, is the only one LUPA, a retirees party begun in 1979 votes cast were still not available. Na­ that gained 50,000 votes-notenough by attorneyMario Raccagna, collabo­ tional dailies that came out on Tues­ to outweigh the loss of the other mem­ rators of Lyndon LaRouche in Italy, day, Oct. 31, with banner headlines bers of the five-party coalition. and others sharing the principles of promoting the victory in Italy's capital The Communist Party-led opposi­ freedom fro m injustice, economic city of the Christian Democracy and tion also declined. Despite a shrill and austerity, and cultural decadence; the five-party ruling coalition, soon aggressive campaign, the environ­ candidates ranged from journalists, were reporting on polemics, charges mentalist, anti-working class New teachers, and musicians, to bus driv­ of fraud, and uncertain figures. Communist Party of party boss Achil­ ers. Its vote may be compared to the The Communist Party, which had le Occhetto lost 110,000 votes. 800votes the LaRouche-linked Euro­ at firsthowled over the fact that some There was also a setback for the pean Labor Party had received in the 33,000 votes had been mistakenly Greens, who ran for office with the last local elections held in Rome in assigned to the Christian Democrats, backup of an alliance with the Radical 1985. This fivefold gain was despite has gotten very quiet. Now, the Chris­ extremists and the top leadership of the presence in the race of five"senior tian Democracy accuses the board of "Proletarian Democracy," a left split­ citizens" parties; the other four had elections of being some kind of "Com­ off from the Communist Party . Their been created by the big parties, and munist coven" run by a Communist top candidate, GianfrancoAmendol a, received a lot of help, money, and with an ultraleftpa st. had released statements to the daily television coverage, in order to split If the figures currently available La Repubblica where he claimed to and dilute the vote of Rome's 600,000 stand up, all the parties, except for the expect over 10% of the vote. The slate retirees. Socialist Party, both in the govern­ did not even reach 7%, which means The vote breakdown is very inter­ ment and the opposition, should be a loss of 45,000votes in Rome in com­ esting since peoplehad to choose both worried. The analysis of the vote parison to last June's European Parlia­ the municipal representatives, and the shows an obvious disaffection on the ment elections. district ones: Pensionati-Liberta per voters' part. If one looks at the vote The "Anti-Prohibition League" LaRouche got almost 1,000 votes not from the standpoint of the percent­ headed up by Radical Party leader more in the districts than in the City ages, which have grownthanks to the Marco Pannella, campaigning for Hall race. This means that people vo­ smaller number of voters, but in abso­ drug legalization, was also trounced, ting traditionally forthe big parties at lute numbers of votes won with re­ and may not have attained the mini­ City Hall, voted for "Liberta per La­ spect to the last municipal elections in mum to seat a single candidate. Rouche" in their local districts, show­ 1985, the protest is loud and clear. The mood of citizen protest ex­ ing in this way a recognition of the The largest party, the Christian pressed itself in not voting (there was candidates personally. Democracy, has actually lost about a 20% abstention rate), blank and Moreover, the great merit of the 60,000 voters, and another 40,000 spoiled ballots, which were 92,000 electoral decline of the Greens must have dropped away from the smaller (about 5%), and in smaller formations be ascribed to the Freedom for La­ Republican, Social Democratic, and which collectively garnered some Rouche movement. It was the only Liberal parties, adding up to 100,000 53,000 votes. slate to denounce the fraud of so­ votes lost, or 6% less, for four of the A good result was obtained by the called environmentalist parties, with five parties that make up the present 220-candidate slate called Pension­ its posters, "No to Ecological Taxes," national government. The Socialist ati-Liberta per LaRouche, (Retir- pasted up all over Rome.

60 International EIR November 17, 1989 PanamaRep ort by CarlosWe sley

The truth about Manuel Noriega ing Colombia's burgeoning illicit George Shultz's campaignfor drug legalization proves again trade-tainted money that the banks wouldn't be able to touch if they were that Noriega's opponents are the real drug pushers. properly regulated," said the Wall Street Journal. After much lobbying, General Noriega got Panama's Congress to F or several years, starting with and Treasury Secretary Donald Regan modify Barletta's secrecy regula­ Ronald Reagan's administration, the (who covered up drug-money laun­ tions, and on May 6, 1987, he moved United States has been trying to force dering at his former place of work, against the drug-money laundering out the commander of Panama's De­ Merrill Lynch), were so much against banks in a joint operation with the fense Forces (PDF), Gen. Manuel An­ fightingthat war? DEA, "Operation Pisces," which led tonio Noriega, claiming that he is The push to oust Noriega was to the seizure of 139 drug money ac­ "a corrupt, drug-running dicta­ launched by Shultz's State Depart­ counts in a score of banks of various tor." But as EIR reported in its "White ment when the commander of Pana­ nationalities. One month later, Paper on the Panama Crisis," a Spe­ ma's Defense Forces began to dis­ Shultz's State Department escalated cial Report prepared by a team of in­ mantle the drug apparatus, which had its "get Noriega" drive. vestigators, the campaign against No­ been installed there largely by Barletta saw his role in Panama as riega, if successful, "will hand the Shultz's friends. Chief among those "a little like that of a Kissinger," and, Panama Canal over to Soviet-directed friends is a former student of Shultz as EIR's "White Paper" documented, narco-terrorists." We also noted in at the University of Chicago, Nicolas was installed into Panama's presiden­ that report that the opposition to No­ Ardito Barletta. cy through the manipulations of Hen­ riega promoted by the U.S. State De­ As documented in EIR 's "White ry Kissinger. Barletta is regarded as a partment is largely composed "of Paper," it was Barletta's resignation "brilliant economist" by his American frontmen working for the drug mafia: from the presidency of Panama on banker friends, says Sol Linowitz, drug-money launderers, lawyers for Sept. 28, 1985-after Noriega re­ whose Marine Midland Bank bene­ cocaine and marijuana traffickers, ter­ fused to use the PDF to crush the fitedfrom Barletta's offshore banking rorists, and drug runners." growing unrest from both labor and center. In his autobiography, Linowi­ Once again EIR has been proven business sectors upset by Barletta's tz talks about Shultz's feelings for his right. George Shultz, during whose austerity economic policies-which protege Barletta: He "remembers him tenure as secretary of state the cam­ drew the wrath of Shultz and the U.S. well and affectionately." paign against Noriega was launched, Eastern Establishment against the In 1986, Barletta signed a report has now revealed himself as a drug Panamanian general. put out by Linowitz's Inter-American partisan (see article, p. 75). Barletta, the creator of Panama's Dialogue, calling for drug legalization Shultz's activism in favor of drugs offshore banking center, bragged that with the same arguments now pro­ is not due to a recent conversion. he had designed a banking code which pounded by Shultz. Besides Barletta, Throughout his tenure at the State De­ allowed for transactions in Panama to the document, called "Rebuilding Co­ partment, Drug Enforcement Admin­ be not only tax-free, but "more secret operation in the Americas," was istration (DEA) officialsbitterly com­ than Switzerland," according to a signed by the cream of America's Lib­ plain, Shultz only gave one speech 1982 Wall Street Journalart icle. That eral Establishment, including Mc­ against drugs, even though drug eradi­ secrecy attracted to Panama most of George Bundy, Robert McNamara cation was supposedly the number­ the top banks in the U.S. and the (Barletta's former boss at the World one foreign policy concern of the world, including Chase Manhattan, Bank), Cyrus Vance, and Elliott Rich­ Reagan administration. Marine Midland, Citibank, Banque ardson. Claiming that "Waging war Shultz's pro-drug policy also bur­ Nationale de Paris, Bank of America, on drugs cost money . . . and will in­ ies all illusions that the United States and Credit Suisse. evitably result in the loss of jobs, in­ has ever conducted a serious war on It also turned the country into a come, and foreign exchange that the drugs. How could the Reagan admin­ haven for the drug mafias, as everyone drug trade provides," the Inter- Ameri­ istration ever fight such a war, if two knew at the time. "A lot of Panama's can Dialogue demanded "selective of the top "generals," namely, Shultz deposits are the proceeds of neighbor- drug legalization."

EIR November 17, 1989 International 61 Andean Report by Antonio Avil a

Walter Marquez defends assassins curred in the region one year ago." Venezuela's Gnostic deputyhas confirmedcharges that he On Sept. 14, Colombia's IV Army Brigade command revealed that it had defends narco-terrorism, and is an enemy of the Church. captured 28 ELN members who had been carrying out various terrorist ac­ tions in the area of Medellin, in collab­ oration with the cocaine-trafficking Speaking at a press conference in lombian congressman whose visa has Medellin Cartel. front of the Venezuelan Supreme just been canceled by the U. S. State By covering for the ELN, says the Court Oct. 30, Venezuelan congress­ Deparatment because of his links to PLV's Pefia, Marquez is not only man Walter Marquez insisted that the the drug trade. backing a narco-terrorist group, but terrorist bombing four days earlier of This was certainly not Marquez's also the assassins of Catholic bishops. a jeep carrying five National Guard­ firstdefense ofnarco-terrori sts. In Oc­ In early October, the ELN first smen was not the work of the Colom­ tober 1988, members of a specialized kidnaped, then murdered the bishop bian National Liberation Army elite counterinsurgent force known as of Arauca, Monsignor Jesus Emilio (ELN), but rather an operation on the the CEJAP killed 14 suspected terror­ Jaramillo Monsalve, according to a part of military or military-linked cir­ ists in the border region known as EI spokesman for the Second Division of cles to perpetuate a coverup of an al­ Amparo. Marquez not only flouted the Colombian Army. On Oct. 3, leged military massacre the previous Venezuelan law at the time by harbor­ peasants in Arauca-which is on the year. Marquez clung to this coverup, ing two of the escaped terrorist sus­ Colombian side of the border from EI despite the fact that the ELN-a Cu­ pects, but deliberately fostered anti­ Ampar(}-found Monsignor Jara­ ban-sponsored narco-terrorist band of military sentiments by irresponsibly millo's body, with two bullets through cut-throats which had just murdered a charging that the armed forces had his head. The ELN admitted that it had Catholic bishop in Colombia-itself murdered innocent fishermen instead kidnaped the bishop one day earlier, has already assumed full responsibili­ of guerrillas, as the CEJAP claimed. with the intention of using him as a ty for the bombing! His recent press conference in front of message-bearer to Colombian Presi­ Signing themselves the "Domingo the Venezuelan Supreme Court was to dent Barco. Lain Sanz Front of the ELN," the ter­ demand that the Court re-open a trial Pefia pointed out that in view of rorists sent a communique to the press against the military personnel alleged­ Marquez's latest defense of the ELN, immediately following the Oct. 26 ly responsible for the EI Amparo the possibility of his winning a bid for bombing, claiming authorship of the deaths. governorof the border state of Tachira murders, which, they declared, were Congressman Alfredo Vethen­ presents a serious threat to Venezue­ revenge for the death of one of their court Plaza, a spokesman for the De­ lan national security. Marquez's guerrilla commanders at the hands of fense Commission of the Chamber of candidacy is backed by the Movement army troops one year earlier. Deputies which is supposed to be in­ to Socialism (MAS) party, whose The secretary general ofthe Vene­ vestigating the murder of the five magazine En el Ojo del Huracan zuelan Labor Party (PLV), Alejandro guardsmen, declared, "I believe that ("Eye of the Hurricane") just pub­ Pefia, issued a statement Nov. 7, not­ the information of the Afmed Forces lished an article by Colombian drug ing that Marquez's defense of the is correct, until proven contrary. " legalization advocate and novelist Ga­ priest-killing ELN was not surprising, However, Marquez still insists that briel Garcia Marquez, in which he at­ given the congressman's involvement claims of ELN authorship of the tacks the Colombian war on the drug with a Gnostic cult dedicated to the bombing are a lie. On Nov. 2, the dai­ trade and proposes a negotiated pact destruction of the Catholic Church. ly El Diario de Caracas published a with the traffickers. Marquez is a founder of the Universal note saying that "Deputy Walter Mar­ Venezuelan cattlemen and grow­ Christian Gnostic Church in Venezue­ quez, in a debate in the lower House, ers from the region bordering Colom­ la, which in Colombia has well-docu­ argued that this operation of the Co­ bia have also repeatedly accused dep­ mented links both to the terrorist M- lombian guerrilla is false, because it uty Marquez of defending the narco­ 19 and to the drug trade. Last year, was 'mounted' by those who would terrorists who have been murdering, Marquez conducted a tour together like to manipulate the consequences kidnaping, and rampaging on both with fe llow Gnostic Jairo Slebi, a Co- of the EI Amparo massacre which oc- sides of the border.

62 International EIR November 17, 1989 Report from Rio by Silvia Palacios

An electoral 'white coup' 1964 military takeover. "New Age" cultists are pulling a scam on the Brazilian Until recently, Aparecido used his position as governor of the Federal electorate, with dangerous destabilization the result. District to decree the construction of a mystical city inside Brasilia, which would house dozens of esoteric and secret societies. At the same time, he sponsored a major international con­ Less than 15 days before its first Santos's entrance on the scene, has ference on "holism," the cult philoso­ direct presidential election in 29 been charged with land invasion, phy which directly attacks Socratic years, Brazil has suffered a "white racketeering, and fraudulent bank­ reason and is attempting to create a coup," with the launching of the ruptcy. In 1986, Athayde' s candidacy New Age sect within scientificcircles candidacy of synthetic television en­ for the federal Senate was prohibited in the country, as part of the Satanic tertainer Silvio Santos, whose true due to accusations of abuse of eco­ mass movement promoted by UNES­ name is Senhor Abravanel. Worse nomic power. Another PMB leader, CO and the Cini Foundation of Ven­ than the announcement of the candi­ state deputy from Parana Jose Felinto, ice, among others . Not accidentally, dacy itself-which thrusts upon the has been indicted for allegedly issuing Marzagiio through Televisa, and Sil­ country an absolute neophyte commit­ false checks and participating in the vio Santos through SBT, have played ted to a monetarist economic pro­ trafficking of children to Israel. a pivotal role in the spread of New gram-is the fact that it was spon­ This destabilization of the elector­ Age ideas. sored by a group of politicians linked al process represents yet another skir­ This faction of "magicians, " to Brazilian President Jose Sarney. mish in the long-standing battle for whose monetarist economic proposals Santos, a glitzy television person­ powerinside Brazil. carry a threat of fascist genocide ality who is popular among the poor­ As far as is currently known, the against the Brazilian population, first est and most ignorant Brazilians, real brain behind the outrageous ma­ attempted to regrouparound ex-Presi­ made an immense fortune-including neuver is Augusto Marzagiio, who un­ dent Quadros, whom Marzagiio un­ through his own television chain til last June headed the multimillion­ successfully attempted to talk into a SBT-by manipulating and selling il­ dollar Televisa enterprise in London, new presidential bid while in London. lusions and false hopes to that misera­ in his capacity as international vice After that failed effort, the group tried ble and semi-literate majority who president of that powerful Mexican to use false polls to inflate the weak constitute more than half the country's television network. He abandoned candidacy of deputy Afif Domingues, 82 million voters. that post to come to Brazil and take on the candidate of the Liberal Party The visible coordinators of the the apparently secondary role of press linked to the circles of the U. S. secret Santos scam were the three senators, adviser to President Sarney, in the pa­ government known as "Project De­ Marcondes Gadelha, Hugo Napoleiio thetic final phase of his administra­ mocracy." and Edson Lobiio, known in this coun­ tion. Joroot do Brasil on Nov. 7 em­ It is rumored in the Brazilian press try as "the three little pigs." To launch phasized: "Alongside the dozens of that if national pressures force Silvio Silvio Santos, these three used the journalists who are following the Santos to withdraw his candidacy, he name of the on-paper-only Brazilian progress of Silvio Santos was an unex­ and the circles promoting him will re­ Municipal Party (PMB), whose lead­ pected presence: two Televisa repre­ constitute themselves as supporters of ers are members of an evangelical sentatives. " the AfifDomingues candidacy. sect, and several of whose principal Marzagiio and Culture Minister Whatever the outcome of the San­ leaders-according to Jornaldo Bra­ Jose Aparecido are prominent mem­ tos candidacy, his sponsors have al­ sil of Nov. 5 and 6-face multiple bers of a powerful group of Gnostic ready succeeded in destabilizing the criminal charges. intriguers of the "New Age" variety. electoral process, which could lead to For example, on Nov. 5, Jornal Both men are confidantsof the equally a dangerous political radicalization in revealed that the PMB's Mucio Gnostic former President of Brazil the country. On the other hand, the Athayde, political mentor of Ar­ Janio Quadros, who resigned from his country could finally decide to purge mando Correiawho had been theparty post in 1961, provoking a constitu­ itself of these "New Age" networks presidential candidate before Silvio tional crisis which brought on the once and for all.

EIR November 17, 1989 International 63 International Intelligence

Beijing will not interfere too closely with cree, effective Nov. 20, drastically reducing New Dutch unity Hong Kong affairs after 1997, and that, as the amount of We stern money any Hungari­ government fo rmed Beijing still wants reunification with Ta iwan an citizen can acquire in exchange for his to work, it would make a serious effort to forints . make sure that the Hong Kong experiment Under the existing law, every Hungarian After nearly two months of negotiations be­ worked . citizen can purchase up to $480 equivalent tween the Netherlands Christian Democrat­ From Hong Kong, Kissinger traveled to in We sterncurrenci es, over three years . The ic Appeal Party and the Dutch Labor Party, Communist China, where he met on Nov. 8 new law sets a maximum perp erson of $300 a new coalition government was formed on with Politburo members Vice Premier Yao equivalent for four years , thus reducing the Nov. 6. The "grand coalition" represents a Yilin and Li Ruihan. Chinese state televi­ amount by more than half. government of national unity. The Prime sion described the meetings as "friendly" Another emergency measure, an­ Minister will be Ruud Lubbers , the Christi­ and "sincere." Kissinger is also expected to nounced yesterday by Prime Minister an Democratic leader who had been Prime meet with Deng Xiaoping and President Miklos Nemeth, provides for wage in­ Minister in the former government. The Yang Shangkun. creases of 16% above inflation for Hunga­ posts of Foreign Minister, Economic Minis­ ry 's 25 ,000 scientists and research workers , ter, and Ministers of Environment and So­ to prevent the current brain drain from turn­ cial Affairs will held by the Christian Demo­ Czechoslovakia the ing into a hemorrhage. The Hungarian news crats . The posts of Deputy Prime Minister, agency MTI reported that each year 12% of Finance, Interior, Defense, and Develop­ next hotspot? the R&D workforce have been accepting ment Cooperation Ministers will be held by "job offers from abroad," i.e. , from the the Labor Party. The most likely potential world trouble-spot We st. According to Dutch observers , many of for the immediate future is Czechoslovakia, A bankrupt national economy has now the Labor ministers are moderates and are a British strategist said in a discussion with been joined by a bankrupt party, both politi­ not expected to initiate any dramatic shifts EIR . He said there is an irreconcilable di­ cally and economically. Of the old Commu­ in government policy. One observer com­ lemma in Czechoslovakia, because it is one nist Party 's 720,000 members, a mere mented that "people are too concerned with country where the Soviets are fully backing 20,000 have become dues paying members the unstable situation in Eastern Europe" to the hard-line crackdown, at the same time of the new Hungarian Socialist Party, creat­ initiate a drastic change in governmentp oli­ that pressures for social and political change ed at the extraordinary party congress on cy concerningNAID or security policy. are growing all the time. The fact that Oct. 6-7. This catastrophe was revealed yes­ A senior Dutch military source com­ Czechoslovakia borders on so many countr­ terday in a declaration by the president of mented that froma security and NAID point ies, East and We st, makes it a likely flash­ the party 's financial control commission, of view, "it is a workable government." oint for a crisis, although robably short of p p citing a party "economic crisis." MTI re­ something that would reci itate a military p p ported on Nov. 3 that the ruling Hungarian confrontation. Socialist Party has formally applied to join Kissinger wants On Nov. 4, Czech dissident Vaclav Ha­ the Socialist International , and that HSP vel warned in interviews given to France's chairman Rezso Nyers, "has signed a cor­ 'respect' fo r China Le Figaro and Britain's Independent, that a responding application." major crisis is about to erupt in Czechoslo­ The United States must resume a normal vakia. He said that the country is like a dialogue with the People's Republic of Chi­ "pressure cooker" and "nobody knows Mexico to shut na if it wants to ensure stable politics in when it will explode ....There is no rea­ Southeast Asia, Henry Kissinger said in son for the governmentto wait for the crash do wn unsoldpubl ic firms Hong Kong on Nov. 6, addressing a confer­ before starting dialogue with the nation. ence on the future of Asia-Pacific economic That would just cause needless suffering ." Mexican Secretary of Energy, Mines, and relations. "I notice that the Japanese are in­ Industry Fernando Hiriart Valderrama said creasing their military efforts ....If now in the firstweek of November that "the pub­ America cuts itself off from China it will Hungary in lic companies that aren't sold in the next affect all our relationships in Asia," Reuters months will be closed and their workers will quotes Kissinger as saying. "We do not have economic emergency be fired according to law." His threat coin­ to approve what took place . . . but we have cides with reported plans of PresidentCarlos to deal with the future , and the future re­ Hungary's Finance Minister Bekesi de­ Salinas de Gortari to introduce legislation to quires the resumption of a dialogue based clared on Nov. 4 that Hungary is at the brink repeal the existing labor laws and replace on mutual respect." of being unable to meet its foreignexchange them with laws similar to those now in force Kissinger said he is optimistic that payment commitments . Bekesi issued a de- in the maquiladora industries along the U.S.

64 International EIR November 17, 1989 Briefly

border which are cheap labor, runaway same time, the Khmer Rouge has announced • ZBIGNI�W BRZEZINSKI, shops. Maquiladora laborers earn a very that its guerrillas are advancing down Route formerly Jimmy Carter's national se­ low wage, and it is difficult or impossible 10 from Pailin, the border town they took a curity adviser, met in Moscow on for them to form unions. month ago, toward the provincial capital of Nov. 1 with Soviet foreign ministry Battarnbang. spokesman Gennady Gerasimov, as The Khmer Rouge also claimed that it part of a two-week tour. 'Hidden war' has temporarily cut another highway and railway linking Battarnbang with the nation­ against Vietnam • JUAN REBAZA has been ap­ al capital, Phnom Penh. The Khmer Rouge pointed as �ru's new minister of says it is coordinating its offensive with the ''There is a hidden war" against Vietnam fishing. Rebaza is a founding mem­ Khmer People's National Liberation Front. still, British reporter John Pilger wrote in ber, along with Helga Zepp-La­ It is also reported in Bangkok that the a feature on Vietnam in the British daily Rouche, of the Schiller Institute La­ Cambodian guerrillas trained by Britain's Independent on Nov. 4. Pilger has recently bor Commission. elite Special Air Services are now effective­ visited Vietnam. "Having sought to 'bleed ly under the control of the Khmer Rouge. Vietnam white on the battlefieldof Cambo­ • WILLY BRANDT, head of the The guerrillas were trained nominally under dia,' U.S. policy is now clear in its aim to Socialist International, announced on the auspices of Prince Sihanouk, but report­ 'destabilize' Vietnam with American sup­ Nov. 4 that the Socialist Internation­ ers for Independent Te levision Network in al's European branch will send dele­ port for the Chinese-backed, and Khmer London claim that the trained sabotage team gation to Moscow in early 1990 as Rouge-led, 'resistance' and an international is run completely by the Khmer Rouge. a followu to Brandt's ow n visit to embargo which few American allies dare to p Moscow in October. break," Pilger wrote . "Ten years ago, Thatcher's government cut off powdered Libya pressures NICOLAE CEAUSESCU, the milk supplies for starving Vietnamese chil­ • President of Romania, has sacked his dren. The U.S. still runs a propaganda war Italy fo r more aid foreign miniSter and minister of eco­ against the Vietnamese by attacking them Libya's extremely recarious financial situ­ nomic lanning. According to the for 'invading' Cambodia; it was actually a p p ation has been the rime motivation behind Daily Telegraph, Ceausescu fired defense of their We stern border against Pol p its launching of a ro aganda cam aign Economic P�nning Minister Balan Pot, aided by China." p p p against Italy. In an attem t to blackmail Italy as a sca egoat for Romania's grow­ Now Vietnam must submit to "free en­ p p into granting more economic assistance, ing economic problems . terprise" subjugation, Pilger wrote: The Libya has threatened assertion of its legiti­ head of the new Commercial Bank, laissez­ mate right to annex Venice, described as a THE 'BLACK SABBATH' Sa­ faire capitalist Dr. Nguyen Xuan Danh, who • former Libyan town, and has sent several tanic rock u received warm used to run the Bank of South Vietnam, � p hundred Libyans into Italy on Oct. 26 to praise from the Soviet weekly New offers "free enterprise zones" with cheap demonstrate against the Italian Fascist re­ Times, which said that the grou 's labor to all foreigners . p gime 's execution of Libyan prisoners during leader Tony lommi "is very modest In the hospitals, records show that 44% the war. Libya was probably tied to the mur­ in his everyday life, has no bad hab­ of the pediatric patients are malnourished, der of an Italian engineer on Oct. 25 . its, and is said to possess quite a few and one-third of them die . The U.S. still To ing it all off, Libya has requested virtues. " enforces the Thading with the Enemy Act pp several hundred million dollars worth of against Vietnam, forbidding sales of new "compensation" for the decades-long occu­ GRETCHEN SMALL received hospital equipment, medicine, and so on. • pation of Libya by Italy. Italy did actually major coverage in Mexico City'S EI Many people are near starvation in north and ay close to $10 million of com ensation in D(a Nov. 9 fur her ress conference central Vietnam. p p p the 1950s. However, the crisis is hitting a there on the political imprisonment raw nerve since Italy has major investments of her husband, EIR !bero-American Khmer Rouge in Libya, and 'llipoli'is still one of its main editor Dennis Small, with Lyndon oil suppliers. LaRouche and fiveothers in the Unit­ on the march The strange turn of events in the last ed States. El Dia quotes her charge weeks has led to speculation in the Italian that Amnesty International seems Large-scale fighting is continuing in Cam­ press that there may be more to the crisis "more interested in defending Co­ bodia as the Khmer Rouge seeks to recap­ than a mere Libyan outburst against Italy, lombia drug t}ghters than fighters for ture its former stronghold at Phnom Malai, with some mentioning a possible involve­ social justice. " the Bangkok Post reported Nov. 3. At the ment, yet undefined, ofthe CIA in the crisis.

EIR November 17, 1989 International 65 �TIillNational

Elections highlight crisis of 'Buckwheat' Bush

by Webster G. Tarpley

On Nov. 7, one year after George Bush defeated Michael the 1961 Berlin crisis and the 1962 Cuban missile crisis. Dukakis for the presidency, Americans went to the poIls for Bush is also subject to public tantrums when he does not what is now billed as an off-off-yearelecti on. It was certainly get what he wants. Since his deserved humiliation on the no coincidence that in all three of the most important races CIA's botched Panama coup, the tantrums have been coming of the day, Republican gubernatorialand mayoral candidates thick and fast. There was the one in Costa Rica, when tinhorn for whom Bush had personaIly campaigned were defeated. Danny Ortega announced that he intended to wage war on The next day, all the President could manage when asked the remnants of the Contras. There was the tantrum provoked for a reaction was a lame "wait till next year," and press by a reporter's question concerningthe refusal of the rightful spokesman Marlin Fitzwater skulked in his office and de­ leader of Lebanon, Gen. Michel Aoun, to accept the "settle­ clined to appear to brief the press. ment" turning Lebanon over to Syrian domination. There The negatives for Bush amount to far more than a few have been tantrums about the Democrats in Congress every elections. The defeats merely crystaIlize the impotence and time the question of Bush's insane cut in the capital gains tax ineptitude of the "can't do" Bush administration. Bush's sup­ has come up, with Bush accusing the Congress of blocking port, always a millimeter thick even when it seemed to be everything that he is trying to do. There was a tantrum on the a mile wide, has now almost totaIly evaporated, whatever afternoonthat theBe rlin Wall was opened, this time because doctored poIls may still purport to show. Two crises-the Bush had been blind-sided once again by a great world event, deflationary spiral inside this country, plus the breakdown and also because his Anglo-American outlook cannot come agony of the Russian empire-have now combined with the to terms with the irreversibledynamic toward German reuni­ catalyst of bungling to make a third: a political crisis of the fication. Bush has been repeatedly taken by surprise in his Bush regime. Bush is now very far gone along the road that supposed fo rte of international affairs, but still refuses to leads to Carterization, Hooverization, or even Nixonization. fire the ineffective and inflammatory CIA director, William Bush has shown a crippling inability to make important Webster. The word among the White House press corps is decisions of any kind; in this, he is prey to the chief that Bush still thinks that he is vice president, and that he is occupational hazard of the bureaucrat, which is his self­ trying to win an unprecedented fourth term in that office. conception. The Soviets have doubtless noticed this, and As reflected in his election-day press conference, Bush will get a chance to observe Bush up close at the Dec. is supporting Gorbachov and East Germany's Egon Krenz, 2-3 Malta summit. Malta on the model of the 1986 paying hard cash to Iran's Hashemi Rafsanjani, appeasing Reykjavik seIlout is bad enough, but how about the Syria's Hafez ai-Assad, and courting Deng Xiaoping, while spring 1961 meeting of Kennedy with Khrushchov in the snubbing Israeli Prime Minister Yitzhak Shamir and threat­ SchOnbrunn Palace in Vienna, when the Soviet dictator ening Aoun. (According to British press reports, Bush is profiled the U.S. President by physically attacking him? also flirting with Muammar Qaddafi, through secret talks in The conclusion of Khrushchov and his pal Walter Ulbricht Amsterdam and Brussels.) was that Kennedy was a coward, and this led directly to Domestically, Bush is threatening to make devastating

66 National EIR November 17, 1989 Gramm-Rudman automatic sequestering permanent, cutting attacks on unionists, blacks, Hispanik:s, farmers , anti-abor­ more than 220,000 active duty servicemen and a carrier battle tion groups, defense and patriotic circles, television evange­ group. As far as Bush is concerned, if the Pentagon can't lists, and especially on anti-bolshevik resistance leader Lyn­ live with that, they should tell it to the Congress. don LaRouche and his co-workers . Bush , like Prince Metter­ Bush is denying reality at every tum. Thus, the adminis­ nich before 1848, was holding down: the lid of a boiling pot tration, staffed by the most experienced and consummate by sitting on it. Now the pot is boiling over, and Bush is group of professional bureaucrats in u.s. history , is para­ about to take off with the lid. Factioqal. ferment, for good or lyzed and adrift. ill, is sure to increase.

Policy by consensus Bushmen's bets are otT Bush now inhabits the free-fire zone of cartoonis\s and On election day, Democratic Rep. James Florio defeated political satirists. Even more ominously, Henry Kissinger his Republican colleague Jim Court¢r for governor of New noted in a recent column that the Bush administration can Jersey by a lopsided margin in a race that chose the successor have no policy on Eastern Europe because Washington is to the Republican blueblood Tom Kean, and in which the being run by a consensus. Naturally, Kissinger is bidding to Democrats also captured the State Assembly. In New York fill the vacuum, as he has in the past. Bush stands for nothing City, it was moderate black Democrat David Dinkins for but a deal with Moscow on the lowest common denominator mayor over the would-be GOP aveng�r Giuliani, whose main of bureaucratic consensus. campaign gambit was to attempt to nail his opponent for tax On Nov. 8, political prisoner Lyndon H. LaRouche, irregularities. In Virginia, black moderate Democrat Doug­ speaking from a prison cell in Minnesota, compared Bush to las Wilder eked out a paper-thin margin over union-busting buckwheat, the grain whose stalks are often broken by strong right-wing ideologue J. Marshall Coleman, who demanded winds because it refuses to bend. "This is the state of affairs that tanks be sent to fight strikers at the state's coal mines. of a government which will crack and be crushed by any In Seattle, New Haven, Durham, Cleveland, Detroit, and crisis which divides the consensus, or by any crisis which other cities, black mayors were either elected or returned to forces the situation to the point that major forces left out of office. Wilder is the first black elected governor in U.S. the consensus must come into play. Thus George Bush is like history, while Dinkins in New York and Norm�n Rice in buckwheat, his administration ready to be crushed in the next Seattle are the firstblack mayors in thehist ory of these cities. political storm, and the storms are brewing. What is going Over the past years, a symbiosis between Bush and Jesse to happen? Is George Bush going to be given the treatment Jackson has been evident, with Bush relying on Jackson which outshines even that given to Nixon after 1972? Be­ to scare moderate white voters aw� from the Democratic cause I see the vultures clacking their beaks . I see the hyenas column. This strategy is also now in crisis. Wilder and Din­ lurking, the coyotes lurking. Is George Bush doomed unless kins pointedly kept their distance from Jackson, and both he quickly changes his ways and comes to realize that ideas, were elected. Jackson is thus eclip�ed, and must contend clear thinking, and not consensus, are the basis upon which with two successful moderate black spokesmen on the nation­ sound governmentis led?" al stage. The Bushmen are likely to respond by stepping Which brings us back to the elections. Bush had planned up their campaign to watergate Washington, D.C. Mayor a CIA knuckle-dragger presidency based on Lee Atwater's Marion Barry , with the intention of, opening up an election theory that a U.S. fascist police state should not be bipartisan that Jackson could win. Earlier this year, as labor ferment (as some Democrats would contend) , but rather must be Re­ began to emerge across the United States, the Eastern Liberal publican, because of that party's domination of the Executive Establishment instinctively reached for its principal counter­ branch, the seat of looming totalitarian control, and because insurgency card, the provocation of race war, as reflected of the need to extirpate any constituency politics still surviv­ in racial incidents from New York City to Virginia Beach, ing in the House of Representatives and the big city ma­ Virginia. The success of so many black candidates now chines, most of which arecontrolled by the Democrats. With makes that card harder to play for the ruling elite. the watergating attacks on Jim Wright, Tony Coelho, and Many commentaries on this vote have focused on chang­ several Democratic senators, especially around alleged sav­ ing public views on the issue of abortion. Here one thing ings and loan irregularities, Atwater and company hoped to seems certain: Bush is seeking a way to shiftto a pro-abortion move toward a one-party state. This theme was expressed by stance. In March 1980, Bush used the pages of Rolling Stone this clique's man in the House, Newt Gingrich, with his magazine to endorse the Roe v. Wade decision of 1973: "I insistence that the main line of attack must be that "Demo­ happen to think it was right." This baggage was later crats are corrupt. " jettisoned in order to board the Reaganite conveyance. It now Accordingly, the first months of Bush were marked by looks as if Bush is getting ready to endorse abortion, and to an organized campaign by the intelligence community and raise taxes. Meanwhile, the storms are brewing, and the its assets to put a lid on internal dissent, with stepped up hyenas are lurking.

EIR November 17, 1989 National 67 Webster's playing the "innocent abroad," as the Panama coup plot fizzled, may yet prove to be the crowning accom­ plishment of his tenure as Director of Central Intelligence. Judge Webster's latest problem stems from the fact that recent allegations made by attorneys for Pan American Air­ Dump William Webster lines suggest a coverup of mammoth proportions of the Dec. 20, 1988 bombing of Pan Am Flight 103 over Lockerbie, before the summit Scotland, in which 279 people, including at least three CIA officers, perished. Pan Am says that the CIA had advance by Jeffrey Steinberg warning of the planned bombing, but failed to act because its team in Frankfurt, West Germany had been compromised If President Bush wishes to demonstrate his "personal diplo­ by dealings with a Syrian-backed drug-running ring. matic" skills at the Dec. 2-3 Malta summit with Soviet Presi­ Whether the Pan Am allegations prove to be accurate or dent Gorbachov, he would do well to replace his current not, there seems to be little doubt at this point that the Locker­ director of the Central Intelligence Agency well before he bie bombing was carried out by agents of the PFLP-General sets sail for the Mediterranean. Command, a group more or less run by Syria's intelligence Since trading in his FBI director's chair for that of Ameri­ chief Ali Duba through a "former" Syrian military intelli­ ca's chief intelligence officer, Judge William Webster has gence service major named Ahmed Jibril. Syria, along with racked up a series of intelligence failures and bad judgment Bulgaria, is Moscow's chief asset in running international calls that qualify him for immediate induction into the Bloop­ narco-terrorism. ers' Hall of Fame. Moreover, his problem does not seem to lie with the boys at CIA headquarters in Langley, Virginia. Protecting the CIA's terrorist assets According to recent accounts in the Washington Post and else­ Back in the days when Webster was America's top cop where, Judge Webster spends so little time at the CIA's head­ over at the FBI, he rejected the idea altogether that there was quarters that no one there knows whence or from whom he is a link between terrorists and drug traffickers. More recently, getting his intelligence briefings. Some intelligence commu­ in his new role at the CIA, Webster has sponsored the idea nity oldtimers refer to him as the "101 st senator"-a reference of open collaboration with the KGB in combatting drugs and to the fact that he spends a tremendous amount of time up on terrorism, deploying a top adviser, ex-CIA director William Capitol Hill courting his Democratic Party backers. Colby, to hold private talks with senior KGB officialsduring Webster's most memorable intelligence miss occurred a week-long seminar at the Rand Corporation in Santa Moni­ last spring as events began to explode in the People's Republic ca, Californiain September. Back in February, he enthusias­ of China. His information on the situation inside the P.R.C. tically pushed CIA collaboration with the KGB , supposedly was so off that he failed to forsee the mass student upsurge, to crack the Pan Am 103 case. and when the Tiananmen Square massacredid take place, he He is still sticking to his guns on the issue of CIA-KGB tried to downplay the role of Deng Xiaoping, just hours before collusion. On, Friday , Nov. 3, as the first reports of the Pan Deng surfaced publicly to claim credit for the slaughter. That Am accusations were beingsurfaced by Rep. James Traficant gaffe was compounded by the fact that President Bush had (D-Oh.) at a crowded Capitol Hill press conference, Webster gone public with Webster's version of the events. turned to the Washington Post to give him front-page "dam­ On Sept. 19, Webster delivered a major public speech age control" coverage in an impromptu interview in which before the World Affairs Council in Los Angeles in which he blamed everyone from West German and British intelli­ he said that the prime focus ofU. S. national security concerns gence to the American media for the failureto come up with has shifted away from the Soviet Union, and toward econom­ the Pan Am 103 culprits. ic competitors of the United States, such as Japan. It was Webster is now caught up in a potentially damaging cov­ Webster's implicit view, that greedy industrialists in Japan erup of Soviet client-state Syria's hand in the biggest interna­ and West Germany and Third World dictators are seeking to tional terrorist incident in years. This is a pretty sorry state of bust up the superpower harmony by weakening the United affairs for President Bush, as the latter prepares his upcoming States economically. summit with Moscow's cagey chief of state. An awful lot of Proceeding from that oddball geopolitical world map, benefits might thus be derived as the summit rapidly one might have at least expected Webster to be "Johnny on approaches if the President moves to dump Judge Webster the spot" when the CIA was approached in September to give and replace him with a seasoned intelligence professional aid and comfort to coup plotters to overthrow Panama's Gen. who at least knows enough to remain skeptical about Mos­ Manuel Noriega. But Webster was nowhere in sight, offon cow's expressed intentions, and who has at least read the a European junket. Nobody from CIA was even present at files on Syria's well-known role as Moscow's leading narco­ the White House Situation Room as that crisis unfolded. terroristsurrogate.

68 National EIR November 17, 1989 Representative 1taficant calls for investigation into PanArn 103 disaster

At a packed press conference held at the Cannon House gressman. He added that the report in termsof its investiga­ Office Building on Nov. 2, Rep. James Traficant (D-Ohio) tion was a "full fieldbased report" and was not only credible charged that there may be a coverup by officialsof the United but required an in-depth investigation to ferret out the truth States governmenton the bombing of PanAm Flight 103. On about whether the CIA had advance warning about PanAm Dec. 21, 1988, that flight was blownup by a terrorist bomb 103. Marchetti praised the courage of Congressman Trafi­ over Lockerbie, Scotland, killing a total of 270 people. In cant, who is one of the few members of the House to go the intervening year, American, British, and West German against the "regular channels" for handling these matters, security services have carried out extensive investigations because the chances of a congressional coverup were too into the bombing, attempting to determine who carried out high. the attack, for what motives, and where the bomb was planted aboard the plane. The substance and reaction Pan American airlines has been sued by relatives of the What Traficant released was five pages of the report. victims of the bombing who claim that lax security by the air Despite some of the press's initial negative reaction to the carrier was a key factor in the attack. PanAm stands to pay limited version, what was released was potentially explosive. out over $300 million in damages if the federal court in One excerpt states, "Ali Racep, a Syrian living in Sofia, Brooklyn, New York findsthat it was indeed responsible. Bulgaria . . . reportedly arranged the bomb components and Congressman Traficant has charged that PanAm may their shipment to West Germany in November 1988." have been, in part, a victim of dirty dealings by American Furthermore, the report states tbat a terrorist safehouse and other intelligence services, and that the CIA may have in Neuss, West Germany was raided by the West German been tipped off at least hours in advance of Flight 103's Criminal Police (BKA) and Intelligence Service (BND), departure fromFrankfurt airport about the danger ofa terror­ which led to the arrest of 13 terrorists, most of whom were ist attack. later released. The information for the arrest was given by a At a second Capitol Hill press conference on Nov. 6, Syrian drug runner named Monzer aI-Kassar, who not only Traficant produced a five-page section of a 27-page report worked for Syrian intelligence, but apparently was under prepared by an insurance investigator which detailed the exis­ CIA protection. This CIA protection of AI-Kassar is one of tence of a CIA unit which allegedly was involved in protect­ the key factors behind Representative Traficant's charge of ing a drug-smuggling ring that emanated from Syria and a massive coverup. Bulgaria. The drug-trafficking unit, according to the report, Although the limited version of the report does not delve had recruited baggage handlers who worked for PanAm at into all the terrorist drug- and gun-running operations of the Frankfurt, who would regularly place suitcases full of drugs Syrians, it mentions two other critical individuals implicated aboard the plane. And it was members of that ring who placed in the PanAm bombing: Marwan Khreesat and Ghandanafar the bomb aboard 103. These explosive allegations, made at Dalkamoni. Delkamoni is identified as the second-in-com­ his second press conference held within the week, caused a mand of the PFLP-General Command. Khreesat was not only firestorm of controversy within the media and the various a member of the PFLP-GC network in the Frankfurt area; he intelligence agencies responsible for investigating the terror­ has been identified as an agent of the West German criminal ist operation. police, the BKA. Accompanying Congressman Traficant at the press con­ This identificationof Khreesat as a BKA informant was ference was former CIA officialand critic of the CIA's covert publicly corroborated in the Nov. 5 London Sunday Times activity, Victor Marchetti. Marchetti, co-author of the best­ in an article entitled "The Lockerbie Plot Uncovered ." The seller The CIA and the Cult of Intelligence, stated that he Sunday Times, however, goes with a different versio: of the had received the investigative report through contacts in the bombing incident, stating that there was a Maltese Airline intelligence community and provided the report to the con- connection to the incident. Nevertheless, the investigator's

EIR October 20, 1989 National 69 reportstates that the Israeli intelligence service, Mossad, and and Marchetti began to push this report that some movement the BKA had tipped offthe CIA at least two or three days in began toward unearthing the truth. advance and again 24 hours beforem, the atrocious slaughter EIR correspondents in Paris report that French intelli­ over the skies of Lockerbie, Scotland. gence was tipped off by the Israelis in advance of the terrorist incident. The French could not confirm the CIA protection Two drug-terror networks of the Syrian drug running network, but the essentials of the It identifies two competing terrorist and drug networks Jibril and al-Kassar involvement in the terrorist incident were which had overlapping networks and interests: the al-Kassar absolutely, they say correct. Now there is a political intelli­ operation and Ahmed Jibril' s Popular Front for the Liberation gence war between the British secret services and the West of Palestine-General Command. AI-Kassar was being used Germans, in which the British are blaming the West Germans by a CIA unit described in the report as CIA-I . CIA-l protect­ for bungling the Khreesat affair. In the meantime, Israeli ed al-Kassar even though he was running drugs to support intelligence is content to report the British theory on the terrorist operations, because al-Kassar was "helping on the Malta connection. The bomb supposedly was placed on an hostage question." Air Malta flight headed for Frankfurt, where it was loaded Further in the report, the investigator claims that CIA-l on to the PanAm flight. did not want to unmask or "blow" their asset al-Kassar, since he was informing on Jibril's terrorist operations. According Israeli disinformation? to Western intelligence experts, both al-Kassar and Jibril are Sources in one faction of U.S. intelligence have told EIR Syrian agents under the control of Syrian military intelligence that the report issued by Traficant is Israeli disinformation, chief Ali Duba. Complicating the investigation was the fact aimed at disrupting attempts by U. S. intelligence to place that another CIA unit led by agent Gannon and Special Forces on-the-ground operations inside Lebanon and throughout the Major McKee began investigating al-Kassar and reported to Middle East. These sources believe that a special unit in the CIA headquarter in Langley, Virginia. Langley did nothing Knesset, Israel's parliament, deployed under the direction of about the report and McKee wound up being killed on PanAm Trade and Industry Minister Ariel Sharon and spymaster Rafi 103. Eytan, are using this report for their own purposes, relating Representative Traficant called for a full congressional to growing tension between the United States and Israel. investigation to determine, among other things, the circum­ These same sources also stated that the tipoff of the CIA by stances surrounding the deaths of McKee and other members the Mossad was too vague to be acted on. of his team aboard PanAm 103. The implicit question posed The political establishment in Washington is trying to by Traficant was whether the Beirut team had been targeted run "damage control" on the revelations of Traficant and for assassination because of what they had unearthed about Marchetti, by announcing that the Presidential Commission U.S. collusion with Syrian narco-terroristAI-Kassar. on Air Safety will handle the investigation. Senators Alfonse D' Amato (D-N. Y.) and Arlen Specter (R-Pa.) called for the Variations on a theme creation of this commission right after the first press confer­ Whether all the information in the report is accurate re­ ence by Traficant. According to Marchetti, these presidential mains to be determined. Upon the release of the report, CIA commissions do nothing but cover up what the establishment spokesman Mark Mansfield called the report "ridiculous" does not want to come out, witness the notorious Warren and termed as nonsense the claim of CIA protection of the Commission on the JFK assassination, or the Rockefeller drug network. Moreover, upon release of the report by Commission on the CIA. One well-founded fear is that this Traficant, intelligence community sources began puttingout Commission will go even beyond the Tower Commission's the line that the British investigation into PanAm 103, which whitewash of the Iran-Contra "parallel government" opera­ apparently contains some glaring key contradictions with the tion that traded arms to the Iranians in exchange for promises Traficant-released report, was the closer to the truth. Not to release hostages. so coincidentally, after Congressman Traficant is first press Also at issue is the whole policymaking structure behind conference, CIA director William Webster gave a front-page the U.S. support for the Syrian butcher, Hafez ai-Assad, a interview to the Washington Post stating that the British had Middle East policy which was fashioned by former Secretary the critical information concerning PanAm 103 and that the of State Henry Kissinger. This orientation, which has locked BKA was not fully cooperating. U.S. intelligence into a no-win situation, is the underlying Webster's reaction and the subsequent battle among vari- cause of the PanAm atrocity. As long as the United States 0us intelligence services only underscore the fact that there continues to ally with the narco-terrorist Assad, terrorism is a huge discrepancy between what is publicly being stated and drugs will continue to plague the United States; and and what is privately and officiallykno wn. The families and intrigue, coverup, and murder will surround the intelligence relatives of the victims of PanAm 103 have been trying for community, engulfing even those operatives who may be one year to findout what happened. It was not until Traficant patriots.

70 National EIR November 17, 1989 Chautauqua Conference Report

U. S. -U.S.S.R. officials seek to join worst of twoworlds

by Scott Thompson

"Out of the frying pan and into the fire," goes the proverb and the Soviet Union"; "The Environment: Cooperation of about the idiot who opts for a solution worse than an already the United States and the Soviet Union in Solving Global very bad problem. The saying is descriptive of the remedies Problems"; and "How We View Each Other: Are the Images prescribed to Soviet party boss Mikhail Gorbachov, at the Changing from 'Enemy' to 'Partner?' " fifthannual meeting of the "Chautauqua Conference," where Soviet Justice Minister Yakovlev, Sen. John Heinz (R­ from Oct. 30 to Nov. 3, over 250 Soviet officialsand citizens Pa.), and U.S. Information Agency Director Bruce Gelb gathered at the campus of this year's conference co-host, the were among the featured speakers at this latest East-West University of Pittsburgh. Presuming that the U.S.S.R. is "love-in." ready to chuck Marx and Lenin off the Kremlin balcony, Gorbachov's advisers and their Western interlocutors 'Yes, there is a breakdown crisis' appeared ready to invite Marx's economics teacher Adam Among the Soviet officialswho echoed LaRouche's view Smith in the front door, to deepen the economic disaster that of the gravity of the situation was People's Deputy Pavel is currentlythe greatest threat to world peace. Bunich, who advises Gorbachov on economics, as vice chair­ Meanwhile, the Soviets played heavily on the theme that man of the commission on restructuring, and chief of the the United States must bail out Mikhail Gorbachov economi­ department of "Economic Mechanism of Managing the So­ cally, in order to "save perestroika." cialist Economy" at the Moscow Institute of Management. The tacit agenda item raised by the Soviets outside the When asked by EIR whether the Soviet Union had entered officialsessions was the danger and opportunity raised by the a "physical economic breakdown crisis," Bunich admitted, physical economic breakdown crisis in the Soviet Union, "Yes, that is so. It is a crisis of underproduction." which, they concede, Gorbachov' s perestroika policies have In a later panel discussion on restructuring, Bunich was only worsened to date. Key economic advisers to Gorbachov asked to comment on Boris Yeltsin's prediction that Gorba­ acknowledged to EIR in the corridors, that jailed U.S. states­ chov had only two years to carry out perestroika . "Yeltsin is man Lyndon H. LaRouche is right when he warns that lack too optimistic," Bunich came back!. "If nothing changes of food and other consumer goods means Gorbachov is facing soon, then it has no future . It has less than a year. The new a cold and bleak winter, which his ruling faction might not system must be working by the beginning of next year or else survive. there may be a popular revolt. Only by implementing the Little of this reality filtered into the formal proceedings, new system rapidly can we build confidencein the population where discussion instead focused on the restructuring of the to gain two to three years . If not by January , there will be East bloc to obey the "magic of the market mechanism"; less than a year. We are in a race against time." environmental policing that will only worsen matters by clos­ Bunich also ascribed the principal cause for the revolts ing down farming and industrial production; and the terms of non-Russian nationalities in the Soviet republics and the for a global partnership between the U.S. and the U.S.S.R., crisis among EasternEuropean states to "the crisis of under­ to carve up the world between the two superpowers in a new production, especially for food and consumer goods." version of the Yalta accords at the close of World War II, But revealing the barbaric mentality of the Russian lead­ which are now being tom up in the streets of EasternEurope . ership, Bunich repeated Gorbachov's stated view, that this In general, the conference was focused on topics dear to does not mean the Kremlin will rush in to alleviate the crisis the hearts of the appeasement-minded architects ofthe global with Western imports or stockpiles. On the contrary, "Our superpower deal, including trade , the environment, arms strategy is to let this crisis worsen," Bunich said, "so that control, and "human rights." A sampling of the panel titles when it reaches the boiling point, then we can force through suggests the tenor of the meeting: "Prospects for Increases our restructuring program." in Trade and Economic Relations Between the United States Ifthis is really his plan, party boss Gorbachov is walking

EIR November 17, 1989 National 71 a tightrope, hoping to tum popular anger against his oppo­ namely that the West has a financial collapse arising from nents in the state apparatus (Nomenklatura) beforeit is turned the need to roll over $20 trillion in debt. Without radical on him. Cynical, to say the least. policy reversal, this financial crisis, which has masked an even earlier physical economic breakdown crisis in the West, The invisible hand means that there is not sufficient food or capital to bail out Mikhail Gorbachov's economic restructuringpolicies , as Gorbachov, even if the will be there . outlined by Bunich and others at Chautauqua, imbibed deep­ ly of the elixir of "market magic" by which the latter-day Soviets peddle eco-fascism apostles of Adam Smith have turned whole regions of South On top of this list of monetarist structural reforms that America into empires of drug-running,overtly Satanic crime would only add high unemployment, homelessness, and a families. Bunich said that next January, a package of "two­ booming black market to the grave ills of East bloc economies tier" structural reforms will be pushed through the Supreme that may face actual starvation this winter, several panels at Soviet. Although Bunich and other officials paid lip service Chautauqua were devoted to U. S. -Soviet cooperation for im­ to meeting the "crisis of underproduction" by stepped-up posing an environmental police state on the globe, above all development of industries, farms, and infrastructure, Gorba­ for the purpose of drastically reducing human population., chov is advocating precisely the structuralreforms demanded Bush administration officials present openly called for the by big Western money interests as the precondition for fi­ "post-industrial"society, as when Deputy Assistant Secretary nancial credits . of State for the Bureau of EuropeanRelations Curtis W. Kam­ Among the measures prescribed were the following: man heralded the emerging "Age of Information," in which 1) A scheme for shifting 70% of industrial concernsfrom mere physical goods have little relevance. "We have clearly the central government to the republics, which, in tum, will moved out of the industrial age and into a new era character­ either lease or sell these enterprises to workers' collectives, ized by information and communication transcending nation­ which will be responsible for acquiring investment capital al borders," blathered "New Age" yuppie Kamman. from abroad, from Soviet banks, or else from other more Soviet environmentalist Boris Laskorin showed that the profitableenterpri ses. (Students of history will recognizethis barbaric Soviet leadership not only endorses, but is ready to classic from Mussolini' s 1927 Corporatism-partof the eco­ lead the way in promoting such genocidal gibberish: Laskor­ nomic prelude to World War II.) in called for a total shift in production technology toward so­ 2) Restructuring of Soviet banks to provide capital pre­ called organic farming (with its low inputs of technology, viously supplied by the central government, and the creation Soviet farming is far too "organic" now to feed its people) of a stock market that will be a meansof channeling workers' and energy production based upon the absurdly low-energy savings into enterprises. "renewable, no-waste sources such as solar, wave, and wind 3) A system of taxation of these enterprises and the cre­ power," which Laskorin incongruously pretended to derive ation of an insurance industry. from the late Russian scientist V.I. Vernadsky's conception 4) An austerity program for closing marginal enterprises of the biosphere. Coming to his real point, Laskorin called and redirection of capital investment from sectors such as for popUlation control as an essential means to eliminate the construction in Siberia, which, Bunich said, "will create as "contradictions" between man and nature. much as 20% unemployment." He was perfectly blunt about Laskorin's U.S. counterpart, Alan Hecht, who is deputy the murderous implications of this shock treatment: "The assistant administrator, Office of International Activities, Soviet Union will have the highest unemployment in the Environmental Protection Agency, crowed about the bur­ world," Bunich added, before "bad" Soviet workers are re­ geoning growth of U.S.-Soviet cooperation on environmen­ trained to work in a non-productive service sector that will tal issues since 1972, when an "Environmental Agreement" capture Soviet investment-because servicesrequire less in­ had been signed at the height of detente. The environment is vestment than real industrial, agricultural, and infrastructure now an established part of the U.S.-Soviet "basket five" programs! dialogue around "transnational issues" that includes terror­ 5) A hybrid price system, to include both centrally fixed ism, narcotics, and environmental law enforcement to close prices and a market pricing system, which will impose further down allegedly pollutingindustrie s. austerity by abolishing subsidies on items like food and hous­ There were occasional glimmers of sanity from the Rus­ ing. While food rationing is seen as a stopgap measure and sian side. Alternate Politburo member Yevgeni Primakov, significant homelessness is expected, this reform of pricing for example, was prudent enough to tell the U .S. partici­ combined with the revaluation of the ruble, are seen as essen­ pants, "Keep your economists like Federal Reserve chairman tial steps toward creating a convertible ruble for attracting Alan Greenspan at home; what we need are real food and more foreign investment. products ." Greenspan recently visited the Soviet Union, pre­ Gorbachov's advisers at the Chautauqua Conference sumably to advise them on how to have a nice, stable stock appeared ignorant of the facts known to every EIR reader, market like the United States does.

72 National EIR November 17, 1989 New York mayoral campaign failed to face issues by Dennis Speed

"And of much of Madness, and more of Sin, This decision was touted as a defense of minorities and the And Horror, the soul of the plot. . ." poor; the borough president of Staten Island and Brooklyn -Edgar Allan Poe, The Conqueror Worm each wielded the same power on the board, yet Brooklyn's New York City has chosen a new mayor, a replacement population was over twice that of iis sister borough. But for the 1977-89 reign of Ed Koch, as Democrat David Din­ apparently, it was conveniently "forgotten"that this problem kins defeated Republican-Liberal Rudolph Giuliani in the had been solved prior to 1958 by giving the presidents of Nov. 7 elections. The horrifying, but unavoidable truth of the most populous boroughs (Manhattan and Brooklyn) two this election, is that the citizenry failed to impose a standard votes each, and giving theother borough presidents one vote of reason and decency upon the candidates, the political parti­ each. Why was this earlier-adopted system of "weighted vo­ es, and communications media, to force the greatest crisis ting" not simply re-proposed? in urban American history to be at least confronted, if not The Board of Estimate was originally created to halt solved. corruption in New York City. The new system, with its cre­ The campaign was criticized universally for its mud­ ation of a drastically strengthened mayor and a multitude of slinging and failure to focus upon the impendingcatastrophe unreachable bureaucracies, threatens to drown the city in a facing New York, manifest in collapsing hospital care,labor cesspoolof graftand influencepeddl ing. The charterrevision unrest, homelessness, and crime. Yet one cannot doubt that will: 1) abolish the Board of Estimate; 2) expand the city the financial and cultural controllers of the city-the Anglo­ council from 35 to 51 members, shrinkingeach councilmanic American establishment-shaped this campaign in precisely district; 3) create a 13-member city planning commission. that way. The media fixatedthe electorate's attention on the Power over contracts will now shift over to the office of easily found flaws of both candidates, to the exclusion of the mayor and the City Planning Commission. Seven of the discussion of the most important issue to face voters in this commission members will be appointed by the mayor. The city since I 896-thetotal overhaul of local governmentpro­ City Council will now approve the city budget, and will also posed by the city's Charter Revision Commission. This was decide any land siting questions. approved by voters by a 3-2 margin. Traditionally, however, it has been through the offices of the borough presidents that ethnic groups and minorities Revolution from above have risen to prominent political status in New York The charter revisions may be the final step in the destruc­ City-including black Mayor-elect David Dinkins, former­ tion of this once-great city. The new charter will do away ly Manhattan borough president. Moreover, the borough with the city Board of Estimate, and turn the vast powers president essentially received "on the job training" as a associated therewith over to the mayor, a nest of unelected "mayor" of his borough, while at the same time deciding city agencies, and a part-time City Council. It will virtually upon essential financial and economic decisions for the eliminate the borough president system of governmentwhich benefit-ordetriment-of the city as a whole. This "unify­ has administered the five counties that make up New York ing" function will be destroyed by the revisions; already, City throughout the 20th century . elements in Staten Island have placed a bill in the state New York City'S Board of Estimate, in existence since legislature calling for secession from New York City. The 1898, was ruled an unconstitutional body by the U.S. Su­ city will be "Vietnamized" into "strategic hamlets" to be preme Court in March of this year. The Board of Estimate managed by faceless technocrats, such as Robert Kiley, had significant power over city contracts , the awarding of present head of the Manhattan Transit Authority, and the city franchises, and the municipal budget. It was a body "mechanic" for the genocidal Operation Phoenix scorched­ which included the mayor, the Comptroller, the City Council earth policy in Vietnam. president, and fiveborough presidents. New YorkCity faces what will emerge as its worst fiscal The Supreme Court ruled this body unconstitutional on crisis since 1975. By the time MayorDinkins takes office, the grounds that it violated the "one man, one vote" principle. there will be a $1 billion budget deficit. Mayor Koch has

EIR November 17, 1989 National 73 already proposed the following budget reductions: • $3 million in library cuts, expected to lead in reduction of hours; EIR AUDIO gives you an hour cassette each week of the news, analysis, • $3 million in cuts to cultural institutions; REPORT interviews, and commentary that • job cuts including the elimination of 455 civilian Establishment media don't want positions in the Police Department; 151 street cleaners; 68 you to hear. fire marshals; 175 park maintenance workers; and 250 administrative positions at the Board of Education. EIR AUDIO comes to you from the staff of REPORT Ex ecutive Intelligence Review, Less services, more cops the magazine founded by Lyndon As reported by the Daily News, Oct. 25, 'There were LaRouche, with bureaus around no layoffs [proposedJ but the size of the workforce will the world. decrease by 3,357 through attrition. The city still will hire more than 3,200 cops over the next eight months .... With you get in an hour what "AII­ Koch announced the changes at a packed City Hall press EIR AUDIO News Radio" won't give you in a conference attended by Wall Street executives and bond REPORT, lifetime. experts , nervous about the city's fiscal stability." The shift in social policy is made clear: less services, more security forces. Felix Rohatyn , the creator of the corporatist Munic­ First with the War on Drugs. ipal Assistance Corporation and an economic adviser to First with the Food for Peace. Dinkins, has emerged once again as the likely executioner First to drive a stake in the heart of Satanism. for the fiscal "final solution" required. "Mr. Dinkins also Listen to EIR AUDIO REPORT each week. has said he would receive economic advice from a board that would include: American Express Co. Chairman, $500 per annual subscription. Make check or money order payable to: EIR News Service,P.O. James D. Robinson III; investment banker Felix Rohatyn; Box 17390, Washington, D.C. 20041-0390. MasterCard and leveraged buyout expert Reginald Lewis; and attorney Visa accepted . Or call to place your order, (703) 777-9�51 . Joseph Flom," according to the Wall Street Journal. Already on Oct. 20 , a major sell-off of city bonds had occurred, when news leaked that the city had a $530 million budget gap. The New York real estate market has experi­ enced significant softening over the past weeks, partially CONSULTING attributed to the cumulative effects of Oct. 19, 1987, and the new Oct. 13, 1989 crash. Nothing, therefore , is intended to ARBORIST be left !o chance in a Dinkins mayoralty; Dinkins has been Available to Assist in criticized for having personal tax and other financial prob­ lems almost hourly over the past weeks. He will be extraordi­ The planning and development of narily reluctant to challenge these forces. wooded sites throughout the continental The reputation of Dinkins's opponent, former U.S. At­ United States as well as torney Giuliani, as the "world's greatest prosecutor," nose­ dived with the resurfacing of the scandal of Daniel Perlmut­ aiI�l!.J� The development of urban and ter, a former Assistant U.S. Attorney under Giuliani, who suburban planting areas and was convicted of stealing over $500,000, as well as large amounts of cocaine, from the office safe in 1984. Giuliani's The planning of individual annulment of his 14-year marriage to Regina Peruggi, on homes subdivisions or the grounds that he suddenly realized that they were second industrial parks cousins, has been described by critics as a model of what Giuliani might mean by the phrase "virtue is a lack of oppor­ tunity." For further information and availability In a Giuliani world, the world of the all-powerful prose­ please contact Perry Crawford III cutor, there can be no scruples. In a Dinkins world, there must be the appearance of scruples. The tragedy is that the Crawford Tree and Landscape Services continuing complacency of the electorate makes it nearly 8530 West Calumet Road inevitable that the hero of this "immorality play" will be the Milwaukee, Wisconsin 53224 Conqueror Worm.

74 National EIR November 17, 1989 Eye on Washington by Nicholas F. Benton

George Shultz backs the drug pushers "In light of former Secretary Shultz's Drug czar William Bennett accuses thefo rmer secretary of state recent speech advocating drug legal­ ization, does President Bush share the of undermining the U.S. anti-drug effort. view of William Bennett that-" Fitzwater interrupted, astonished: "Secretary Shultz-former Secre­ tary-who did this?" "Former Secretary of State George Shultz." Former Secretary of State George a quite serious allegation against this "He advocated legalizing drugs?" Shultz's shocking revelation Oct. 7 institution," the reporter followed. Fitzwater said, wide-eyed. that he personally favors the legaliza­ "I don't think we have any desire "In a speech at the Stanford Busi­ tion of drugs drew sharp fire from to reply, really," Boucher snapped. ness School, he advocated the legal­ Drug Czar William Bennett, and elic­ The reporterpersisted, "He's talk­ ization of drugs." ited embarrassment and confusion ing about this institution [the State De­ This was too hpt for Fitzwater. He from official spokesmen for the White partment] , which has a certain memo­ tried to deflect the issue with a quip: House and State Department. ry that goes through the various ad­ "Whoa! He's been on the West Coast When this was firstbrought to the ministrations, and by not replying you too long, hasn't he? The guy slips into attention of members of the Washing­ seem to be accepting the criticism of retirement and right away he starts ton press corps, the response was dis­ what was happening a year ago." saying things that are strange." belief and horror. "Does this man "I'm just saying I'mjust not going But this being a serious matter, have children?" one woman asked. to get into the past," Boucher an­ this reporter proceeded to present the It took over three weeks for the swered. facts. "You can read all about it in the first news of Shultz's speech to the At the following day's State De­ Wall Street Journal." But even after alumni at the Stanford University partment briefing, the question was Bennett's attack on Shultz was cited, Business School to break into the Wall raised again. But this time, Boucher all Fitzwater would say was, "I don't Street Journal. replied, "That issue was fully covered have any first-hand comment simply The firstofficial response came in in yesterday's briefing." because I was unaware of this. But the form of quotes attributed to Drug "No, it wasn't covered," a UPI re­ clearly, we do not believe drugs Czar Bennett in a small Washington porter interjected. "It was avoided." should be legalized. " Times article Nov. 2. "This explains In the meantime, Shultz had sent So, neither Boucher nor Fitzwat­ some things for me over the last eight a letter of support to a pro-drug er, in professing ignorance of Shultz's years, when I was in the Reagan ad­ legalization conference in Washing­ views, was willing to address the issue ministration," Bennett reportedlysaid ton, D.C., sponsored by the Drug as Bennett raised it: Namely, that on Oct. 31 while in Madison, Wiscon­ Policy Foundation. In that letter, on Shultz may have been undermining sin. "It explains some problems we Hoover Institution letterhead, Shultz officialpolicy during his entire tenure had. As many people have pointed thanked the pro-drug foundation for as secretary of state. out, the State Department in those its invitation to him to speak at Nonetheless, Fitzwater's pen­ days did not seem to be as avid on this their conference, and said, "I look chant for resorting to humor to get out issue as it should have been." forward to receiving more informa­ of tight spots did give some other re­ On the same day, State Depart­ tion about your foundation, and I porters the opportunity they needed to ment spokesman Richard Boucher, will be happy to refer people to more widely expose Shultz's when confronted with the news, said, you who are interested in supporting treachery. "I am not aware of all this, so I don't reform of the current policy." The The Washington Times, in a small really have any comment," but added letter was proudly read from the article, quoted Fitzwater's joke about that "anti-narcotics efforts are a high podium of the conference. being on the West Coast too long, and priority of this administration." Thus, at a White House briefing Cable News Network cited him each "Can you get a specific reply on on Nov. 6, spokesman Marlin Fitz­ half hour the following day, saying that, because it's coming from a high water had an even harder time skirting the White House was "ridiculing" government official. It appears to be the matter. This reporter asked him, Shultz's pro-drug position.

EIR November 17, 1989 National 75 Congressional Closeup by William Jones

Helms attacks Kissinger amendment onto the bill which would the United States to have relations policy in Lebanon remove the Social Security surplus with China. In statements on the Senate floor on fromthe budget since it masks the real The House adopted the China Nov. 8, Sen. Jesse Helms (R-N.C.) size of the deficit. After a promise sanctions on a 418-0 vote. The Senate attacked the treacherous policy of the from Senate Majority Leader George adopted a slightly different version of United States government toward the Mitchell (D-Me.) that the issue would sanctions July 14 by an 82-10 vote. government of Gen. Michel Aoun, be voted on as soon as possible, Heinz The conferees adopted Senate lan­ pinning the blame for the treachery on withdrew the amendment. guage permitting the President to lift U.S. acquiescence to the Kissinger­ The legislators succeeded in beat­ the sanctions if he deems this action authored U. S. -Soviet condominium. ing the debt default deadline, but there "in the national interest." The House "The State Department . . . for was a great deal of nervousness before offered a somewhat tougher standard over 15 years has allied itself with the it occurred. "This is a very difficult requiring that any lifting of sanctions Soviet Union's ally Syria. This policy night for the United States," said Rep. be "in the national security interest." was created by Henry Kissinger as Bill Frenzel (R-Minn.). "We have part of a process toward a United never defaulted, and we're getting States-Soviet condominium over the close to it. This is a genuine crisis." Middle East. For the Department of The debt bill raises the govern­ State, Prime Minister Aoun's crime is ment's borrowing limit from $2.8 tril­ Watchdog committee that he stands for a free and sovereign lion to $3. I trillion for FY 1990 which created for CIA Lebanon," said Helms. "The State ends Sept. 30, 1990. Without the ceil­ The Senate on Nov. 7 approved legis­ Department imposed the Taif agree­ ing, the governmentwould have been lation by a 64-34 vote which would ment on Lebanon under the guise of unable to repay owners of about $13.8 create an independent watchdog com­ an Arab-supported and sponsored billion worth of Treasury securities mittee over the Central Intelligence initiative ....In addition, the State that fell due on Nov. 10. Because of Agency. The inspector general would Department and the Soviet Union im­ the failure to raise the federal debt lim­ be nominated by the President and posed Rene Moawad on Lebanon it, the Treasury had on Nov. 1 sus­ confirmedby the Senate instead of re­ through the Soviet's puppet Syria." pended the sale of U. S. Savings porting only to the director, as is done Bonds. now. President Bush strongly opposes the Senate plan, which is seen as an outgrowth of the Iran-Contra debacle. Congress votes to Conferees approve "We had the potential [during Iran­ raise debt ceiling China sanctions Contra] to have a government within The House voted 269-99 on Nov. 6 to A House-Senate conference commit­ a government, sellingassets and using agree to the Senate amendment in­ tee agreed on Nov. 7 to impose further the money to run operations with no creasing the statutory limit on the pub­ U.S. sanctions against the People's trail, no trace, and no one would lic debt, thereby avoiding a govern­ Republic of China in response to the know," said Sen. William Cohen (R­ ment default. The vote came shortly bloody suppression of the pro-democ­ Me.), vice chairman of the Senate In­ before the deadline set by Treasury racy movement. telligence Committee and a member Secretary Nicholas Brady for prepar­ Among the sanctions adopted of the special panel that investigated ing for auctions to refinance $13.8 bil­ were a ban on arms sales, a ban on the Iran-Contra affair, in support of lion in debt falling due on Nov. 9. the sale of U. S. satellite and police the proposal. The Senate approved the measure equipment, an end to all nuclear coop­ The House version of the measure by voice vote after efforts to force a eration, a bar on further liberalization would leave the current organization compromise on catastrophic health in­ of export controls, and suspension of of the CIA inspector general un­ surance and an attempt to remove So­ U.S. overseas investment insurance. touched, but full access to its invest­ cial Security trust funds from deficit The sanctions were adopted just igative reports would be required.The calculations, were abandoned. Sen. after President Bush said there were House version would tempt a veto, ad­ John Heinz (R-Pa.) tried to tag an "enormous geopolitical reasons" for ministration sources say.

76 National EIR November 17, 1989 Bush says he is being 1 1,000 from theMarine s. dent to order the seizure of terrorists blocked by Congress Secretary of Defense Richard or drug traffickersabroad without the The Congress is "blocking everything Cheney on a talk show on Nov. 9 said consent of the nations where they are I try to do," President Bush said in that sequestration without additional seized. a press conference on Nov. 7. Bush funds being allotted for "reprogram­ The legal adviser to the State De­ urged the press to "get on" Congress ming," would be equivalent to "uni­ partment, Abraham Sofaer, also ex­ for sabotaging all the legislation he is lateral disarmament. " pressed concern over delegating such trying to get through. powers, since it could have an "ad­ With an air of desperation, Bush verse impact on our bilateral relations noted the morass in which much of his with the country illl which we act." Subcommittee chairman Don Ed­ proposed legislation-the clean air epublican congressman bill, the drug bill, the ethics legisla­ R wards (D-Calif.) called such a policy threatens to bolt GOP tion-has become bogged down, la­ "kidnaping," referring to the fact that Republican National Committee menting that the Congress should the Iranian parliament had cited the chairman Lee Atwater narrowlyavert­ "support the President as he tries to Justice Department opinion to say that ed a major embarrassment when he move this country forward in these ar­ "they have the same right to come into succeeded in keeping a Republican eas and not let them dominate debate the United States to arrest their fugi­ congressman from bolting to the by blocking everything I try to do." tives without our knowledge and kid­ Democratic Party by getting him a key Bush decried the "partisan shift" on nap them." Edwards commented, seat on a major committee. Capitol Hill. "Maybe the department needs more Rep. Arthur Ravenel Jr. (R-S.C.) experience; it needs an education was prevented from acquiring a seat about how the government is sup­ on the House Merchant Marine and posed to work in a free society." Fisheries Committee by a powerful Republican member of the panel. The entagon hurt by P Democrats were willing to get him the Gramm-Rudman cuts seat if he would switch to the Demo­ In testimony before the Senate Armed cratic Party . This development led to enators targeted in Services Committee, senior military frantic maneuvering by Republican S officialstold Congress that they would National Committee chairman Lee savings and loan probe be forced next year to cut 229,000 ac­ Atwater in order to keep Ravenel in Five Senators, four Democrats and tive duty men and women from the the fold. one Republican, have been implicated armed forces-roughly 10% of all House Minority Leader Robert in the investigation of the collapse of U.S. military personnel-if the cur­ Michel (R-Ill.) hastily called a meet­ Lincoln Savings and Loan and the ac­ rent budget-cutting dispute between ing of the GOP Committee on Com­ tivities of its chairman Charles the White House and the Congress is mittees to give Ravenel a seat that had Keating. not resolved. been created just a few days earlier The Senators are accused of inter­ Defense Department Comptroller when the committee was enlarged. vening with the Federal Home Loan Sean O'Keefe said that budgetary Bank Board at two 1987 meetings to pressures and deficit-reduction re­ withdraw a rule curbing high-risk in­ quirements facing Congress may re­ vestments by savings and loan institu­ sult in defense cuts totaling $150 bil­ tions. Notes provided by former fed­ lion or more from the five-yearspend­ Judiciary Committee eral bank regulator Edwin Gray to the ing plan President Bush outlined in fears FBI kidnap powers House Banking Committee indicate January. O'Keefe said the cuts, which In hearings before the House Judiciary that Sen. Dennis DeConcini (D-Ariz.) fall most heavily on personnel ac­ Subcommittee on Civil and Constitu­ told bank regulators that Lincoln counts, would include an estimated tional Rights on Nov. 8, representa­ promised to make less-speculative in­ 62,000 man reduction in the active tives of the Justice Departmentfaced vestments, and asked the bank board duty Army, 76,000 from the Navy, congressional criticism for their new to withdraw the ditect-investment reg­ 80,000 from the Air Force, and legal opinion which allows the Presi- ulation.

EIR November 17, 1989 National 77 National News

Shanker pointed to school districts' ton to restore some health benefits. fears of introducing r�forms which might The ruling, which deals directly with the drag down average scores on the Ubiquitous issue which led to the UMW A strike in April 1990 defense bill will standardized tests. "I would call for an im­ of this year, is a major victory for the union, mediate end to standardized tests as they are although it only covers 100 laid-off workers begin troop withdrawals now," Shanker said. "What you need to do, who were cut off from health benefits by The $305 billion defense bill approved by is test for things that are really important: Pittston. House-Senate conferees will remove reading, writing, computing, history. To The injunction was sought by the Na­ 15,000 U.S. troops from Europe this fiscal test for depth of knowledge, you have to get tional Labor Relations Board. year, beginning the reduction of American away from things that are graded by ma­ troop strength in Europe. chines ." Although these troops were attached to short-range missile units disbanded under the INF treaty , the move's true intent is Teamster victimization shown by an included directive to the Presi­ upheld by federal judge dent to report on beginning a gradual reduc­ 'Brain dead' baby tion of the 40,000 U.S. troops in South Ko­ Manhattan Federal District Judge David N. rea as well. now declared alive Edelstein ruled against an appeal by top Teamster officials who challenged the pow­ The bill eliminates one of three B-2 A New York baby , two-month-old Luis Al­ stealth bombers requested, and cuts $150 er of a government appointed "investiga­ varado, declared "brain dead" by so-called million from the $1.25 billion requested for tions officer," Charles M. Carberry, to oust experts and the New York Health and Hos­ a rail-based version of the MX missile. The Teamster officials. pitals Corporation, and who faced death Judge Edelstein ruled in favor of the MX missile must now be made mobile, be­ afterNew York State Judge Helen E. Freed­ government, which argued that Carberry 's cause Soviet warheads are now accurate man ruled on Oct. 18 that a New YorkCity­ enough to destroy U.S. ICBMs in their si­ powers were part of the agreement accepted run hospital , Elmhurst General , had the los-and plentiful enough to target three by the Teamsters last March in exchange for right to kill him by taking him off a respira­ the government's abandoning its RICO suit. warheads on each U.S. silo, rendering U.S. tor, has now been ruled alive. The Department of Justice had been using ICBM silos useless. The HHC had called in yet another ex­ The U.S. military is ex ected to be the RICO statutes against the Teamsters to p pert Oct. 31 to back its position in a rehear­ forced to cut 170,000 active duty troo s by convict top leaders of racketeering and put p ing of the suit brought by the child's parents, the entire union into rtXeivership. the Oct. 16 Gramm-Rudman-Hollings bud­ Luis and Carlotta Alvarado, on Oct. 27, get sequestration to save $3 .4 billion of $8 A government pp a ointed administrator, who are fighting to keep their child on the billion in cuts mandated for the Pentagon. Frederick B.· Lacey, has also filed a court respirator. The new expert who examined Another $3.8 billion would be cut from the petition seeking sanctions against Teamster the child was pediatric neurologist Hart Pe­ leaders for holding meetings without in­ operations budget, reducing flying hours for terson, who said that the child was not only forming him, so that he could attend. Lacey aircraft , steaming time for ships, as well as not brain dead, but was, in fact, making further gouging maintenance and training claims that the meetings were held to discuss feeble attempts to breathe on his own. the possibility of backing out of the March programs . Another $1.7 billion will be cut The family's attorney said HHC knew agreement, since the Teamsters believe that from research and development, causing before the latest exam that the child was not major delays in the B-2 stealth rogram , and the government is now reneging on a prom­ p brain dead. Although the hospital backed ise made then not to seek the removal of in the SSN-21 attack submarine program. down from its demand the child be removed present board members. from the respirator, the rehearing of the case will hopefullyaff ect the brain death statutes that endanger others .

AFT head calls for RICO 'fascist,' former testing for knowledge Reagan official says American Federation of Teachers President Pittston ordered to The RICO , or racketeering, law should be Albert Shanker attacked multiple choice immediately repealed because it is a "fascis­ testing, and called for a returnto tests which restore some benefits tic invasion of our law," according to Paul are a more accurate measurement of knowl­ In the bitter strike between Pittston Coal Craig Roberts, a former Treasury Depart­ edge in an Oct. 29 speech. Shanker urged a group and the United Mine Workers union, ment official in the Reagan administration, return to greater reliance upon essay tests to U.S. District Judge Dennis L. Knapp of in a commentary in the Nov. 7 Washington gauge depth of knowledge. Charleston, West Virginia has ordered Pitts- Times.

78 National EIR November 17, 1989 Briefly

Roberts dismisses efforts to "refonn" quested by the Department of Justice, which NEW YORK CARDINAL RICO, charging that only by outright repeal had conceded in June 1987 that it had insuf­ • John "will we be safe from the RICO monster that ficientevidence to try the case. O'Connor announced the creation of is destroying our rights as citizens ." Last year, Attorney General Edwin a new order of nuns whose "total Roberts quotes at length from a presen­ Meese III issued a "profound apology" to commitment will be to the cause of tation by Federal Appellate Judge David Beggs, who had been forced to resign as life as threatened by abortion and eu­ Sentelle to a recent conference in Washing­ head of NASA while he defended himself. thanasia." The order is to be called ton on RICO, in which Sentelle denounced A few months later, the space shuttle Chal­ the Sisters of Life . RICO as a "hungry monster that is devour­ lenger was lost during launch. DR. ROBERT HUNTER ing traditional concepts of American juris­ Beggs has recently begun his own con­ • has prudence," and charged that it has "eaten sulting finn, directed at furthering interna­ resigned from his post overseeing the away at the wall of federalism that the fram­ tional cooperation in space between the U.S. fusion program effective Oct. ers" of the Constitution erected. U.S. and its traditional allies. 27 , according to the Department of According to Roberts , Sentelle also Concerning the DoJ witchhunt he was Energy . Hunter tried to destroy the warned that RICO "is doing violence to the forced to endure, Beggs told the Nov. 6 magnetic fusion program by halting principle that association is a type of expres­ Washington Post, "We do things like that in construction of the next-step Com­ sion covered by the First Amendment. " He this country. No individual is above the law, pact Ignition Tokamak device. cautioned his audience that while "you may and when it comes time to account for your VICE PRESIDENT not like labor unions or the right-to-life actions, you do. But the fact that it takes so • Dan Quayle movement," the currentvictims of RICO, if long is a little difficult." has done an "outstanding job," ac­ RICO isn't stopped, it will eventually tram­ cording to President Bush, who said ple on everyone's rights . that Quayle would "absolUtely" be The Coalition for RICO Refonn, in a his running matF: in the 1992. Bush's letter to the editor in the Nov . 3 New York statements dampened speculation Times, opposes an earlier editorial support­ that Bush might choose James Baker ing the use of civil RICO. The coordinator as his running mate. of the Coalition in Washington, D.C., Mar­ Air Force says Soviet tin Connor writes, "The statute's civil pro­ • ARMENIANS outside the visions are so vague and expansive that they reductions = modernization Shrine auditorilJm in Los Angeles, make almost any claim for damages a poten­ Officials at U. s. Air Forces Europe more than 1,000 strong , protested tial Federal RICO case. 'Virtually everyone (USAFE) headquarters evaluate current So­ Soviet Red Arrity killings on Nov. who has addressed this question, ' said Chief viet unilateral force reductions to be "noth­ 2. The Soviet Red Anny chorus and Justice William Rehnquist last April, ing more than a modernization effort ," re­ dance ensemble was appearingthere . 'agrees that civil RICO is now being used ports Aviation Week and Space Technology in ways that Congress never intended when in its early November edition. The evalua­ • THE BUSH administration is it enacted the statute in 1970. Most of the tion echoes EIR ' s specialGlobal Showdown reeling from the EIR's Greenhouse civil suits filed under the statute have noth­ report. Effect report, a top scientist told EIR . ing to do with organized crime. They are These officials"maintain the Soviets are He reports it being circulated every­ garden-variety fraud cases of the type tradi­ actually enhancing their forcesbefore a con­ where , and that an open war is about tionally litigated in state courts.' " ventional arms reduction treaty is complet­ to be declared by the scientific com­ ed."Deputy USAFE commander Lt. Gen. munity on the global warming hoax . Ted Rees said, "What we see now is a re­ alignment of their forces which provides • CHINESE MILITARY person­ them greater combat capability with more nel who were told to leave the U.S. modem airplanes and weapon systems than after the June 4 Tiananmen massacre Former NASA director they had nine months ago ." Rees claims that have returned to the United States, the Soviets have been withdrawing older the Los Angeles Times reported Nov. James Beggs cleared MiG-23s from East Gennany but are replac­ 5, and are working on "The Pearl of Fonner National Aeronautic and Space Ad­ ing them with more capable MiG-29s. Peace ," the biggest-yet Sino-Ameri­ ministration Director James Beggs was to­ Military planners at USAFE headquar­ can military cooperation deal . tally vindicated, when California Federal ters at Ramstein Air Base in West Germany Judge Fernando F. Fernandez ordered that believethat the Conventional Forces Europe • THE FBI announcedit will purge all documents and records concerning the (CFE) negotiations in Vienna will inevita­ its files of the names of thousands of December 1985 indictment of Beggs, Gen­ bly result in a "leaner and meaner" adver­ membersof the Coalition in Solidari­ eral Dynamics, and other individuals be ex­ sary, and this will force the U.S. to "mod­ ty with the People of El Salvador. punged from the court. The action was re- ernize and keep our technological edge."

EIR November 17, 1989 National 79 Editorial

The Germany ojSchill er and List

November 10 was the 230th birthday of the poet and Such a solution is readily at hand. It used to be dramatist Friedrich Schiller, a most appropriate birth­ called the American System. It was associated with day to be remembered in light of the events occurring, names like U. S. Treasury Secretary Alexander Hamil­ not only in East Germany, but also in Poland and other ton, who coined the name of "American System." It parts of Eastern Europe . Already , there is an accelerat­ also included the two Careys-Benjamin Franklin's ing popular impulse for reunification of Germany-at collaborator Matthew Carey of Philadelphia, and his least, an impulse for assimilating the East Zone into son Henry C. Carey, the economic adviser of Abraham the Federal Republic . Lincoln. It was also associated with the 'great German­ Such a process unleashes the only possible positive American Friedrich List, author of The National System basis for a unification of the two German populations: of Political Economy. The best qualities of the East Zone people and the best This is a tried and true system in the United States, qualities of the West German people must interact. This as in the Germany of List and earlier of Gottfried Leib­ means, first of all, a revival of the classics of German niz, who founded the science of political economy, or culture-the common, pre-Hitler cultural roots, the in the France of Camot and Monge. It is a tradition well-springs of true German greatness. which fo sters developing the productive powers of la­ Second, the positive feature of the East Germans bor through capital-intensive and energy-intensive in­ coming across the border now is that they have labor vestments in scientific and technological progress, and skills, and bring them to a West Germany that is losing of national banking as defined by Hamilton. many of its skilled industrial operatives due to the Such a system would meet the requirements of the Green, "post-industrial" ideology that has grown so human beings who live in the East, whether they have rapidly in the recent period. Those coming over are experienced communism, Tartarism, or who-knows­ thus immensely valuable to the industrial economy of what variety of barbarism in the past. Since it meets the Federal Republic . the needs of both sides, it is the way of unifying the A reunification of the two Germanies means that people coming out of the Dark Age in the East, the these two fe atures-German classical culture and sci­ communist system, with those of us coming out of entific-technological-industrial skills-are of para­ the nightmare of Adam Smith's economics, around mount importance. common interests, common goals, and cooperation. The critical question before the world today is This is the road to peace; it leads, with the United whether there exists an alternative to two collapsing States' cooperation, and that of Paris, through Bonn, international monetary systems: on the one side, the to Berlin, to Warsaw, and thence to other points . The rotten-ripe communist system centered in Moscow; on success of the recovery of Poland, in the context of the other, the Western "Adam Smith" system centered cooperation between the economies of East and West in London, New York, and Washington. Both are col­ Germany, with East Germany serving as the bridge lapsing, and nothing can save either of them . to this cooperation, is the road to peace . It does not If we are going to avoid war, we'd better find a guarantee peace, but is the only road which leads in solution. If we're going to draw the nations of Eastern that direction. Europe and Communist China into cooperation with Now is the time to junk both Karl Marx and his the other nations of the world, we had better introduce mentor, Adam Smith, and to go back to the proven a monetary system that meets the needs of people on systems of Leibniz and the American System of Harnil­ both sides of the communist/anti-communist divide. ton , the Careys, and List.

80 National EIR November 17, 1989 �TIillSpe cial Reports Comprehensive, book-length Project Democracy: The 'Parallel Govern­ ment' Behind the Iran-Contra Affair. Order documentation assembled by #87001. $250. EIR's intelligence and research Germany's Green Party and Terrorism. The staffs . origin and controlling influences behind this growing neo-Nazi political force. Order #86009. The 'Greenhouse Effect' Hoax: A World Fed­ $150. eralist Plot. Order #89001. $100. Moscow's Secret Weapon: Ariel Sharon and Global Showdown Escalates. Revised and the Israeli Mafia. Order #86001. $250. abridged edition of the 1987 report, second in The Trilateral Conspiracy Against the U.S . ErR's Global Showdown series. Demonstrates that Constitution: Fact or Fiction? Foreword by Gorbachov's reforms were designed according to Lyndon LaRouche. Order #85019. $100. Marshal Nikolai Ogarkov's war plan for the So­ Economic Breakdown and the Threat of viet_economy. Order #88008 . . $250. Global Pandemics. Order #85005. $100. AIDS . Global Showdown-Mankind's Total " First two digits of the order number refer to year of publica­ Victory or Total Defeat. #88005 . $250. tion.

Electromagnetic Effect Weapons : The Tech­ Order from: nology and the Strategic Implications. Order #88003. $150. �ITill News Service The Kalmanowitch Report: Soviet Moles in P. O. Box 17390, Washington, D.C. 2004 1-0390 the ({eagan-Bush Administration. Order Please include order number. Postage and handling in­ #88001. $150. cluded in price.

I would like to subscribe to Executive Executive Intelligence Review for ,Inte,ngence D 1 year D 6 months D 3 months

I enclose $ ___ check or money order

Review Please charge my D MasterCard D Visa

Card No. Exp. date ____ _ us., Canada and Mexico only ______, Signature _

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

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

Foreign Rates Phone ( Central America. West Indies. Venezuela and Colombia: I yr. $450. 6 mo. $245. Address ______I 3 mo. $135 ------I City South America: 1 yr. 6 mo. $470. $255. State Zip ---­ 3 mo. $140. I I Make checks payable to EIR ]\!�ws Service Inc . . Europe. Middle East. Africa: 1 yr. DM 1400. I P.O. Box 17390. Washington. D.C. 2004 1- 0390. In Europe : EIR Nachrichtenagentur 6 mo. DM 750. 3 mo. DM 420. Payab le in I deutschemarks or other European currencies. GmbH. Postfach 2308. Dotzheimerstrasse 166. I 62 Wiesbaden. Federal Republic of Germany. All othercountries: 1 yr. $490. 6 mo. I telephone (06121) 8840.

$265. 3 mo. $145 L ______� LaRouche Delivers the Signal post under such Soviet-pre-orchestrated pressures, makes that in­ cident the signal occurrence within a pattern of developments re­ quiring the mobilization of a global anti-communist resistance force .

The rules of resistance Wherever we are faced with the conditions which compel the forces of anti-communist resistance to launch "People's War" against the adversary and his instruments , we shall wage such fo rms of war under the following rules and,conditions. A worldwide I) It shall be a form of warfare described as "People's War." 2) It shall be fought according to those rules ofju stifiedwarfare anti-Bolshevik associated with St. Augustine. 3) The heroes around whom this resistance shall be mobilized res istance strugg le is the memory of those anti-communist resistance fighters , who fought German and Italian fascism, and often communists, too, during the period up to and following 1945. Issued on Nov. 14, 1988 by Lyndon H. LaRouche, Jr. : To affirm our honor to the memory of those heroes, we teach children to despise Beate Klarsfeld, and all witting accomplices of Moscow's pre-orchestration of the forced resignation of West Ger­ the KGB's VVN, as wearing the face of the enemies of God and many's Bundestag President Philipp Jenninger set off the trip-wire humanity. For the same reason, we despise as low dogs those who warning. betrayed U. S. justice and spat in the face of God , by sending the In this circumstance, like that of the fabled Good Samaritan of American citizen Karl Linnas to his death at Soviet hands. These the New Testament, I find myself in the circumstance the responsi­ persons are an example of those we demand be brought to trial for bility for a certain action falls l!pon me. So, as the Hand of Provi­ their crimes against God and humanity . dence fell upon that Good Samaritan, in that fashion, it has de­ 4) The enemy is communist authority and the accomplices of manded that I do an awesome deed , which I do here and now . that authority's actions against our forces . All who fit that descrip­ So, let the alarm be sounded; the trumpet shall not sound an tion are the forces of the enemy for the purposes of defining our uncertain note. actions of warfare . All these bear the face of the enemy , and shall Let those who refuse to submit to Soviet worldwide imperial be brought as low as required, whenever it serves the cause for aggression rally to the ranks of a new , global resistance movement , which we fightthat that be done . prepared to fight the agents and accomplices of Soviet interest in the 5) All who die or suffer otherwise in this war shall be to us as same spirit as anti-communist resistance organizations fought the martyrs , whose honorable deeds in this cause shall be legendary in fascist tyrannies of Germany and Italy. the tales told to future generations. Let us swear the RiitliOath from "Wilhelm Tell ." Let it be made 6) If we are obliged to enter into such warfare , it would be the clear, that wherever the communist imperial interest shall destroy enemy who has forced this upon the world. Were he wise, he would governments , or subvert them to such a degree that they become hesitate to provoke this war. virtually pro-Soviet varieties of Quisling rule which so cease, trea­ sonously, to be lawful authority, the new Resistance shall launch Organization of the resistance what modernChin a's experience defines as "People's War" against I) The resistance is organized and spontaneous, and whether the communists and their accomplices . organized or spontaneous, is variously open or covert. Let no one doubt, that once such conflict were forced upon us, 2) Openly organized forms of organization , serve to carry the there is no turning back, whatever the cost, until the mop-up of the political banners of the resistance as a whole. These are the voices last remnant of the adversary has been accomplished within each which definethe principles and policies of the resistance . and all of our nations. 3) Covertly organized forms of organization flank and envelop the enemy in the institutions of society from which the enemy seeks The Jenninger issue allegiance and support. Covertly organized efforts seek to cause For the occasion of the fiftieth anniversary of the Nazis' 1938 those institutions to exist to the enemy's disadvantage . Kristallnacht atrocities against Germany Jews, the president ofWest 4) The most covert form of activity is that which is either Germany's lower house of parliament, the Bundestag, Philipp Jen­ spontaneous activity, or is caused to appear so. ninger, prepared the written form of an address. On the subject of 5) He or she is a member of the resistance, who adheres to the the conditions leading into that Nazi crime against humanity, the principles and policies of the resistance . These principles and poli­ written text of the address is among the noblest utterances in honor cies are defined by the open political organizations associated with of the victims during the entirety of the past fifty years . the resistance, from whatever location, and under whatever circum­ Almost the entirety of this address was delivered to the Bundes­ stances they are able to perform this fu nction. tag's open session by Herr Jenninger. During that delivery , certain 6) The combat functions of the resistance are estimated to be members of the Bundestag walked out in actual or simulated protest. about one percent of its total warfare-effort . Promptly, the KGB's assets and most of the European liberal press 7) For the most part , the resistance does its work silently, responded to the address with statements about it which are shown cloaked in mystery, avoiding as much as possible, to report what it to be utter lies by comparison with the written text and electronic has done, or not done, or to report where it has been or not been . A's record of the oral reading. much as possible, the spoor of its work is a shadowy presence in the Investigation shows that this reaction among the liberal press stati�ics until such time as its victories enable it to assert its presence was pre-orchestrated, in cooperation with known assets of the Soviet and work in its own name. KGB , such' as the VVN organization. You can join the resistance , where you sit or stand, without This cpincides with a pattern of recent and current developments contacting any office or person to do so. But swear the Riitli Oath which show institutions of Western governments capitulating to against communist tyranny and its accomplices, to God and to demands of Soviet agencies and KGB-controlled or KGB-complicit yourself, and you have joined. Thereafter, act accordingly, as your persons and agencies, in a more or less equally naked, and shame­ conscience, and your knowledge of the resistance's signals, prin­ less way . The fact that Herr Jenninger was induced to resign his ciples, and policies, compels you .