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

Crime Wave of the Who is right? '90s

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

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

Satanism: Read the definitive study by EIR's inves­ Crime···· wave ' of the '90s · tigative team, including: The Matamoros murders; Manson; the Atlanta child murders; the satanic roots of 'rock.' Plus, "The theory of the satanic personality," Order the "Satanism" Report. by Lyndon H. laRouche, Jr. Learn the Make check or money order payable to: $100 extent of the satanist epidemic, who its EIR News Service postpaid high-level protectors are-and why some P.O. Box 17390 per copy officials' want to cover it up. 154 pages. Washington, D.C. 20041-0390 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Allen Not two months ago, in our cover story "How British strings pull Salisbury, Edward Spannaus, Nancy Spannaus, the Middle East conflict," Webster Tarpley warned that the British' Webster Tarpley, William Wertz, Carol White, Christopher White were steering the Gulf crisis toward a one-world government. Writ­ Science and Technology: Carol White ing now on p. 34 from the United Nations General Assembly in New Special Services: Richard Freeman Book Editor: Katherine Notley York, Tarpley delivers a chilling account, backed up by quotations Advertising Director: Marsha Freeman that speak all too clearly for themselves, of the fast pace by which Cynthia Parsons Circulation Manager: that "one-world" conspiracy is achieving its aims. INTELLIGENCE DIRECTORS: Whether there is a war in the short term in the Persian Gulf-as Agriculture: Marcia Merry Asia: Linda de Hoyos seems increasingly likely; and whether that war explodes into a Counterintelligence: Jeffrey Steinberg, Paul Goldstein worldwide conflict by miscalculation, as in 1914; the machinations Economics: Christopher White of the U.N. Security Council's "perm five" will lead the world to European Economics: William Engdahl Thero-America: Robyn Quijano, Dennis Small war. As Tarpley puts it, "The very idea of five permanent members Medicine: John Grauerholz, M.D. excluding all others from real power is repugnant and unworkable, Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George and this entire supernational system ought to be junked. The U.N. Special Projects: Mark Burdman can be useful as a talk shop and as a venue for negotiations, but it United States: Kathleen Klenetsky cannot be allowed to violate the sovereignty of nation states." INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura This week' s Feature describes the U. S. side of this ugly process: Bonn: George Gregory, Rainer Apel how Margaret Thatcher is steering Bush's drive against Japan and Copenhagen: Poul Rasmussen Houston: Harley Schlanger Germany, the allies whose economic strength and potential is the Lima: Sara Maduefio one hope for peace. While the media holds up the faces of dark­ Mexico City: Hugo Lopez Ochoa Milan: Marco Fanini skinned Third World leaders (always described as "dictators," of New Delhi: Susan Maitra course) for hatred, the fair-haired Margaret Thatcher qualifies as a Paris: Christine Bierre Rio de Janeiro: Silvia Palacios far greater enemy of the human race. Rome: Stefania Sacchi Our other theme is a joyful one. Indeed it is the reason for the Stockholm: Michael Ericson Washington, D.C.: William Jones evil agitation of the Anglo-Americans and their allies in the Soviet Wiesbaden: Garan Haglund "Trust," notably Mr. Shevardnadze. On Oct. 3, we rejoiced with the citizens of newly reunified Germany in the birth of the German EIRIExecutive Intelligence Review (ISSN 0273-M14) is published weekly (50 issues) except for the second week republic, a holiday to be remembered universally for centuries to ofJuly, the third week of August, and first week of September by EIR News Service Inc., P.O. Box 17390, come, because it marked the defeat of the most infamous modem Washington, DC 20041-0390 (202) 457-8840 European Headquarters: Executive Intelligence Review police state-the German "Democratic Republic." That 20th-century Nachrichtenagentur GmbH, PostIach 2308, Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal Sparta was brought to an end by a wave of cultural optimism whose Republic of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenhroich, theme song was the "Ode to Joy" of Schiller and Beethoven (pp. Michael Liebig 42 and 63). In the same week Germany was united, the man who /" Denmark: EIR, Rosenvaengets Alle 20, 2100 Copenhagen OE, Tel. (0\) 42-15-00 prophesied these events in 1988, Lyndon LaRouche, was brought /" Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. closer to his long-overdue release from unjust imprisonment, by a iapatl subscription sales: O.T.O. Research Corporation, Justice Department decision that amounts to admitting his innocence Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. (p. 62). Copyright © 1990 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225. I year-$396, Single issu�$10 Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. TIillContents

Interviews Departments Economics

45 Audrone Vainiunaite and 17 Andean Report 4 Budget agreement calls for Donatas Katkus Citizens resist "Fujishock." new taxes, grim austerity Two members of the Vilnius With his budget package, President Quartet fromLithuania tell how 57 Dateline Mexico Bush is faithfully carrying out the their nation became united around A Trilateral oil grab. dictates of the usurers of the the ideas and works of Ludwig van International Monetary Fund who Beethoven. 72 Editorial are doing to the United States what Build a political anti-war they have already done to the Third movement. World. Book Reviews 6 'Lancet' for triage of Third 13 House of Morgan: the bank Science & Technology World babies that 'ate' the United States Leave it to the British oligarchy to come up with a new "final solution" The House of Morgan: an American 20 Reflections on the cost of to eliminate non-white children banking dynastyand the rise of water and Mideast peace from the planet. modernfinance, by Ron Chernow. Man's increasing mastery over nature has always gone hand in 7 Industrial giants of Japan 56 The British art of framing hand with increasing per capita up innocents throughput and use of fresh water. aud Germany link up for A conspiracy of crowns: the true With modem technology, there is mega-projects story of the Duke of Windsor and no intrinsic limit on that They're telling the Anglo-American the murder of Sir Harry Oakes, by throughput, even for desert areas. "post-industrialists" to go take a Alfred de Marigny with Mickey The issue of cost is a red herring; so walk. Herskowitz. what are we waiting for? Jonathan Tennenbaum presents the necessary 9 U.S. electric power supply concepts. in doubt Part II of a two-part analysis.

12 Currency Rates

15 Banking Bankers getting hysterical.

16 Agriculture Yeutter and Hills want blood.

18 Business Briefs Volume 17 Number 39, October 12, 1990

Feature International National

34 U.N. 'perm five' dictate the 60 Holocaust in Panama new world order returns to haunt Bush The five pennanent members of the The U.S. massacre of 5,000 to United National Security Council 7,000 Panamanians was known to are putting teeth into their mystical EIR readers ten months ago. But right to dictate a one-worldist now the story of Bush's coverup is � policy to everybody else . out everywhere. ..: Documentation: Excerpts from speeches at the U.N. General 62 Early release expected for

jI Assembly. LaRouche, co-defendants Britain's Margaret Thatcher convinced President Bush in Alexandria railroad. that her Persian Gulf strategy would put in their place 39 Soviet general warns of The three companies illegally shut the''uppity'' Gennans, who, along with the Japanese, arechallenging Anglo-American claims to world dom­ world war down in 1987 by the "Get inance. LaRouche" task force will be 40 Third World leaders and seeking $40-60 million in compensatory damages. 26 Mideast crisis:Thatcher press in backlash against targets German unity Gulf adventure 63 U.S. states, cities welcome The no-shows of Bush, Thatcher, German unity and Mitterrand at the Oct. 3 42 Germany reunited as one German reunificationceremonies sovereign nation; faces 64 Will George Bush's symbolize the decaying Anglo­ greater world role American Establishment's deep Mideast war be his political undoing? hostility toward the emergence of 48 Baker feeds Lebanese to non-usurious economic Syrian butchers Documentation: Congressional superpowers such as Gennany and candidate Lyndon LaRouche says Japan. Why are Bush and Thatcher we should have listened to Gen. 49 Indian government acting even worse than Gorbachov? Douglas MacArthur's warnings. bungling aggravates Documentation: "Kraut-bashing" religious disorder, in the Anglo-American media. 67 From Cold War to economic turmoil economic warfare 30 Banning technology for the The "Old Boys" of U.S. Third World 51 Pakistan's elections under intelligence got together in northern U.S. shadow Virginia. 31 Congress to authorize covert operations against 53 Collor imposes green 68 Congressional Closeup U.S. allies agenda on Brazil The new President would destroy There won't be any more 70 National News Contragates-Congress is making it Brazil's economy for a junior­ legal! partner seat in the one-world condominium. 33 U.S. spites itself in Airbus 54 Colombian terrorists get fight olive branch A case study in "free market" insanity. 55 Yugoslavia heads for dismemberment

58 International Intelligence �TImEconomics

Budget agreement calls for new taxes, grim austerity

by William Jones

Five months of rancorous budget negotiations between the Virginia congressional candidate Lyndon LaRouchethat the White House and Congress ended in an all-night session on U.S. economy is in a major depression.

Sept. 29 and a compromise budget package, just in time to I avoid the Gramm-Rudman-Hollings sequester-the auto­ Bush ushers in IMF aU$terity matic, across the board cuts in the federal budget-scheduled The package is confirmation that the U.S. economy is to go into effect on Oct. 1. The agreement was achieved after being subjected to the conditionalities and austerity policies President Bush agreed to drop his demand for a capital gains of the supranational InternationalMonetary Fund (IMF). The tax cut and consented to raising taxes, thus reneging on one budget agreement followed om the heels of the IMF's regular of his "solemn" campaign promises. September meeting in Washington, D.C., at which IMP Immediately after the agreement was announced on Sept. managing director Michel

4 Economics EIR October 12, 1990 tion of the savings made by the new budget proposal will be on the package has made him out to be a fraud, and voters made by cutting anticipated Medicare spending by a whop­ are ready to take their revenge in the November elections. ping $59.9 billion. Negotiators claimed they left Social Secu­ But the negative reaction to the package is bipartisan. "It's rity benefits intact, but obfuscated the fact that as Medicare Beirut over there ," commented one Democratic aide on the premiums go up, Social Security checks decrease. atmosphere on Capitol Hill. Among the Medicare cuts, reimbursements to hospitals Immediately after the agreement, the White House and for the costs of capital investments would be cut by 15%, congressional leaders began intense lobbying on Oct. 1 to extra payments for interns and residents would be cut, as get the package through Congress. President Bush invited would rates paid to doctors in radiology, anesthesiology, and Republicans to the White House to convince them of the need procedures that Medicare deems to be "overpriced." Medi­ of the package. Many of them remain unconvinced. care patients would also have to pay 20% of the cost of Rep. Newt Gingrich (R-Ga.), the Republican House clinical laboratory tests. Medicaid will now only pay for Whip, characterized the package as an anti-growth prescrip­ drugs from manufacturers who charge the lowest price for tion for recession. Rep. Hank Brown (R-Colo.) called the that particular drug based on the sale price of the particular plan a "fraud," saying "the estimates are so flakey I don't drug to any bulk purchaser in the state. The budget agreement think it's much to hang your hat on." Rep. Chuck Douglas also doubled the deductible-the amount beneficiaries must (R-N.H.) called the agreement "the fiscal equivalent of pay before receiving benefits-to$15 0, up from $75, in three Yalta." Rep. Dana Rohrabacher (R-Calif.) characterized it increments: a rise to $100in 1991, $125 in 1992 and $150 as "the road to recession." Rep. Marge Roukema (R-N.J.) thereafter. The budget pact also raises the premiums recipi­ commented bitterly, "If they're savaging Medicare , it's go­ ents must pay in order to cover 30% of the cost of the pro­ ing nowhere. Deficit reduction on the back of the elderly gram, up from 25%. sick? This is madness." These cuts will hit particularly the elderly, the poor, and Democrats are refusing to support the package unless disabled Americans who are the main recipients of Medicare more than 50% of the Republicans in both houses vote for payments. As one bitter critic put it, the government wants the package. In spite of White House efforts, there will be "one eighth of the population to pay for one half of the cuts." considerable GOP opposition in the House. In a press confer­ The House Ways and Means Committee issued a study on ence on Oct. 3, Gingrich said that his office had received Oct. 2 which showed that the average taxpayer among the hundreds of calls and that 83% of the people who had called poorest fifth of all taxpayers would have after-tax income were opposed to the budget. In comments on the floor on reduced by 2%, while the after-tax income of the average Oct. 2, Rep . Dan Burton (R-Ind.) said that with the budget, taxpayer in the richest one-fifth would be reduced by only "each American household will have to spend an additional 0.9%. $ 140 a year to heat and keep electricity in their homes because Farmers are also hard hit by the budget package, which of that energy tax, and the gas tax is going to cost each reduces farm support payments by $13 billion. This will American household, on average, another $20 a year in ex­ require major structural revisions in crop subsidies paid for penditures because of the gas tax." cotton, wheat, com, rice, and other grains. The conference None of these congressmen wants to go into the Novem­ committee for the Farm Bill has two choices: either lower ber elections with that kind of albatross around their necks. the prices paid to farmers for their crops or shrink the acreage The possibility of defeat of the package was so serious eligible for farm benefits. that President Bush was forced to give a nationally televised Student loans were cut by $2 billion. Some $4.6 billion address to the nation on the evening of Oct. 2-arranged on was garnered by delaying the payment of unemployment seven hours' notice-warning of the consequences of not insurance. The agreement would also cut $180 billion from accepting the budget pact. "If we fail to enact this defense spending, although the costs of the operations in the agreement," said Bush, "our economy will falter, markets Persian Gulf, estimated at $11.5 billion for the year, would may tumble, recession will follow." not be included in the spending limit. The nuclear industry Bush hopes that by publicly appealing for supportfor the was the target of $1.6 billion in increased fees to be paid to package, he will provide cover for Republican congressmen the Nuclear Regulatory Commission. to vote for it in the name of party loyalty. If the Republicans cannot produce at least 89 votes for it in the House, the pack­ Taxpayers are rebelling age could be doomed. Gingrich admits that with the weight of But the budget package has already elicited protest from the White House behind it, they may be able to produce those nervous congressmen-all 435 Members of the House and votes. But a resolution on the budget scheduled to be voted on one-third of the Senate face reelection this year. They see the by the House on Oct. 4 was delayed for fear that the package angry anti-Washington mood in their districts. RepUblicans, would be defeated. Some Democrats secretly hope, however, who have been riding the coattails of the President's "no new that Republican defections will kill the plan so they don't have taxes" pledge, are especially nervous. The Bush agreement to. "Let them screw it up," one said.

EIR October 12, 1990 Economics 5 rate does not fall the death rate will ultimately rise again, so the population is stuck in the trap.. ..The possible outcomes are limited: The population aan a) die from starvation and disease; b) flee as ecological refugees; c) be destroyed by war and genocide; and d) be supported by food and other 'Lancet'for triage resources from elsewhere, first as emergency relief and then perhaps indefinitely." Nuclear energy, new high-yield rice strains, good government, e¢onomic investment, and per­ of Third World babies haps even sliced bread, apparently do not exist for Dr. King. Such "ecological transition" has already occurredin Ethi­ by Mary M. Burdman opia, he states. "After decadeS of decline, the infant mortality rate has stopped falling in at least 21 developing countries, The British Establishment's latest atrocity was published in and is rising in others. Incipient ecological collapse is one of The Lancet, the most prestigious medical journal in Britain, the possible causes [emphasis added] . " Third World debt and on Sept. 15. In an article by Dr. Maurice King of the Depart­ strangulation by the International Monetary Fund's austerity ment of Public Health Medicine at the University of Leeds conditionalities are the actual causes. and in its lead editorial, entitled "Nothing is unthinkable," King permits himself to speCUlate on just where health The Lancet has published and endorsed an assertion that officials should "set levels of mortality control"-Le., stop there should be no public health program to save the lives of saving lives. Even while admitting that there are going to be children in developing-sector countries who are dying of "population crashes" in the next years due to famine and the such easily curable diseases as diarrhea, because the human AIDS pandemic, he asserts that "sustainability" is para­ population has put such a strain on the "ecosystem" that these mount. This means: "The demographicand ecological impli­ children are going to starve to death anyway. cations of public health measures must be understood at all King's argument and The Lancet editorial are based on levels .. ..If these are desustaining (sustainability reducing) baldly asserted fraud, written in horror-film language that [i.e., helping more people live], complementary ecologically Hollywood hacks could envy. "Global population grows by sustaining measures, especially family planning and ecologi­ a remarkable 1 million more births than deaths every four cal support, must be introduced with them. If no adequately days," The Lancet intones. "If a bomb as destructive as Hiro­ sustaining complementary measures are possible, such de­ shima had been dropped every day since Aug. 6, 1945 , it sustaining measures as oral rehydration should not be intro­ would not have stabilized human numbers." duced on a public health scale, since they increase the man­ Stability is not the issue. Every day 40,000 children die years of human misery, ultimately fromstarvation [emphasis of hunger and disease, a number that is a full 16% of the added] ." 250, 000 babies borneach day. Many tens of thousands more Oral rehydration is a meanS ofsaving the lives of children are crippled by malnutrition and drugs. This is happening in sick with diarrhea, at the cost of pennies per child. UNICEF the developing sector; it is also happening in U.S. inner calls the method "potentially the most important medical cities. advance of this century."

The fraud of 'sustainable development' Worse than Hitler King's argument is based on the supposed existence of In its editorial Sept. 20, the Hindustan Times of India something called the "demographic trap ," an entity thought called King and The Lancet "barbaric" and "uncivilized" for up by the World watch Institute in 1987 to frighten people into their racist demands . There was an outcry against Hitler, it demanding enforced population reduction in the developing stated; why not against King? sector. King also relies on the "conclusions" of the Brundt­ Actually, King and his The Lancet publishers are more land Commission, the biggest promoter of "sustainable de­ evil than Hitler. They are self�professed pagans, enemies of velopment," which is based on the fraudulent assumption the Christian assertion "of the! value of each one of us in the that human beings never developed new energy sources, new eyes of the Creator." They are death-cultists, whose victims production capabilities, or pioneered new regions of the are dark-skinned children. Dr. King has the gall to quote globe, and that no such developments can ever be achieved Mother Teresa reminding us '·that the world's poorest need in the future . our love and compassion." Programs such as oral rehydration Thus we have from Dr. King: "Populations with rapid for sick children "may not necessarily be part of that love," and sustained growth in the second stage [when death rates he concludes. As part of the British establishment whose are lowered by modem health care] are in danger of ex­ intention is to prevent the poorer countries from getting the ceeding the capacity of their local ecosystems, especially if development they need, King Iconcludes that nothing should these are fragile, as in much of the tropics ....If the birth be done to save millions of children's lives.

6 Economics EIR October 12, 1990 Industrial giants of Japan and Gennanylink up for mega-projects

by Lydia Cherry

Representatives of the two largest industrial groups in the to lead a run on the Japanese banks out of Canada and Hong world, Japan's Mitsubishi and Germany's Daimler-Benz Kong , according to a former senior State Departmentofficial . AG, met in Tokyo the third week in September to map out a The goal of the flight capital effort, the former officialthinks , program of cooperation. "All the 11 projects are large and is to precipitate a "Black Monday," crippling both the Japa­ expensive projects which take time. I think we have done nese stock market and major Japanese banks within 60 days satisfactory work for the last six months," said Shinroku of the start of the fourth quarter. This is intended to block Morohashi, Mitsubishi president, on Sept. 25. Although the Tokyo's participation in the emerging Berlin-Moscow eco­ agreement between the two sides to form a global business nomic cooperation. alliance was made six months ago, this firsthigh-level meet­ The United States has taken out its full arsenal of trade ing, in which Daimler chairman Edzard Reuter arrived in war weapons against Germany and Japan. In the case of Tokyo with a 70-man delegation to discuss the specificsof the Japan, this includes more than 60 pieces of anti-Japanese cooperation, caused no small stir, particularly in the United trade and other legislation, in different stages of enactment. States and Britain. Most blatant was the House action Sept. 12 in approving a The significanceof the hookup between the two giants is resolution to the defense authorization bill by a lopsided 370- not just a question of economic power, as is understood in 53 vote, which was influencedby a U.S. media barrage that Tokyo circles. Toshiaki Matsumoto, writing in the monthly Japan wasn't doing its share in the Anglo-American military This Is in July, predicted that the link will have an "incalcula­ buildup in the Persian Gulf. If passed by the Senate, the ble effect" on the world economy. The two conglomerates, resolution would force Japan to foot the full cost of stationing like the two countries, are similar, Matsumoto, the author of U.S. troops in Japan. Refusal to do so would mean the phased several books on economic and military affairs, suggests. withdrawal of all American troops from Japan. This was a Both countries have acquired confidence through their tre­ bit much for the normally conciliatory Japanese government. mendous economic strength. "Go ahead and go home! We have never asked [the U.S. Among the agreements initially announced was a pact for military] to remain in Japan," the head of the Japanese De­ Mercedes-Benz and Mitsubishi Motors to jointly design a fense Agency, Yo so Ishikawa, retorted. range of four-wheel-drive vehicles. Daimler and trading house Mitsubishi Corp. will cooperate to procure parts. In Orientation toward Europe some cases, commitments have just been made to further That the MitsubishilDaimler-Benz tie-up will be a strong study areas of possible future cooperation. force in Europe, Matsumoto makes clear, is the thinking in Tokyo. He quotes one of Mitsubishi's top executives stating , Britain, U.S. lash out that Mitsubishi's interlocking companies plan to "concen­ One of the major tasks for the new alliance is to gain trate on Europe from now on," and will pull back from the internationalstrength inhigh technology and machinery, ac­ United States. cording to Matsumoto. In the aerospace field, Mitsubishi is The U.K. and U.S. are particularly concerned about the anticipating acquiring the expertise to produce space labora­ Eastern Europe component of the arrangement. They cannot tories, which one of the Daimler-Benz companies, MBB, have been much reassured by remarks by A. Belousov, the is manufacturing and operating. The Wall Street Journal director of the Moscow Academy of Economic Sciences, on acknowledged on Sept. 19 that it is the aerospace hookup Oct. 1. He was quoted by the Soviet press stating that that which the U.S. is particularly concerned about. According the economies of West Germany and Japan are "the models to a German source, Washington has already begun putting for the future Soviet Union." Belousov also hinted-as nu­ tremendouspressure on Japan to block aerospace cooperation merous Soviet leaders have hinted recently-that the Soviet withEurope . The Journalpoints to concernby U.S. govern­ Union and Japan would soon settle the dispute over the south­ ment officialsthat "the Japanese are beginning to loosen their ern Kurile islands. At least some economic exchanges are exclusive relationship with U.S. aerospace companies." apparently back on track between Japanese companies and One of Britain's responses to the shifting alliances was Russia, and the U.S.S.R. recently paid Japanese trading

EIR October 12, 1990 Economics 7 houses $207 million of what it owed Japan for steel imports . a new system of economy; J�pan and Germany are serving The U.S.S.R. and Japanese trading houses have recently as the models for this." Kaidq continues that this is the case concluded contracts for the Soviet Union to sell aluminum because the socialist econoDlic system has collapsed, and to Japan. This is important because ensuring stable supplies the future of U.S.-style free-market economy "doesn't look of raw aluminum has became a serious problem for Japan. bright." The Japanese are hitting harder at U.S. economic policy l History of two conglomerates and identifying the debacle it has created. For example, Mitsubishi and Daimler-Benz have similar histories . Japanese business leader ShiIitaro Ishihara, made famous as Matsumoto documents that both have been in the process of the "bad guy" in what now appears to be a fraudulently emerging from their postwar structures, and that this has translated book, The Japan ThatCan Say No, took the gloves happened in both countriesat about the same time. "This fact off the firstweek in October after touring the Detroit region, may have provided the two groups with the 'backbone' to and called Chrysler chairman Lee lacocca "irresponsible, approach each other, going over the head of the United incompetent," and a "liar." III discussing the "Jap-bashing" States," Matsumoto says. Both-through the various merg­ sentiment he found during the tour, he told an interviewer ers and acquisitions of other companies-have often been from Playboy that American workers must realize that accused of violations of anti-monopoly laws, and both have "American managers are the real problem in America's in­ had strong governmentbacking for the mergers and acquisi­ dustry. American management is irresponsible. Look at Mr. tions they have made. lacocca." He described how Iacocca used the occasion of For example, after Daimler-Benz acquired Messer­ the devaluation of the yen t() raise Chrysler's prices and schmitt-Bolkow-Blohm (MBB) in 1986, virtually consol­ profits, instead of fighting for market share and creating idating West Germany's aerospace industry, the West Ger­ more jobs. "If he hadn't raised the prices, the difference man Federal Cartel Bureau ruled that the acquisition was between Chrysler cars and the Japanese cars would have in violation of the anti-monopoly law. But the minister for been substantial-it probably would have meant more peo­ economics reversed the ruling, which, Matsumoto asserts, ple buying his cars." was because the merger was in accordance with the wishes Ishihara next took aim at the Bush administration's hob­ of the West German government. byhorse, the capital gains tax: f'ln Japan, in order to suppress Since becoming U.S. ambassador to Japan, Michael excesses in money games-p.per shuffling to create profits Armacost has been preoccupied with the issue of the inter­ based on nothing-we make it law to impose a high tax on locking of enterprises in the Mitsubishi Group. This was capital gains. Why is there nOthing like that in America to apparently carried to its utmost absurdity in the Structural discourage companies' being bought and sold and de­ Impediments Initiative (SII) talks last February, when the stroyed-with no attention to whether or not they make a U.S. side insisted that "it is abnormal for one group to ac­ good product? How come the. United States does not intro­ count for 3% of the total sales of all Japanese enterprises." duce a similar system in order to stop all these excessive The Japanese government has fought this, and Mitsubishi mergers and acquisitions conducted on a tactical level by has pretty well ignored the American protests altogether, corporations-that have nothing to do with making the cor­ according to the author. Several days after the conclusion of porations stronger over the long term for the employees and the fourthJapan-U .S. SII talk, on April 10, Mitsubishi Metal for the economy as a whole?" Corp. and Mitsubishi Mining and Cement Company were Ishihara bluntly stated that the abysmal level of education merged. This merger, Matsumoto asserts, is particularly im­ of the American work force was the cause of the crash of a portant, because these two companies were one, prior to Boeing 747 in Japan-one of the worst air disasters in the World war II. They were split up 40 years ago by the U.S., world-and that Boeing officials admitted this to Japanese in its dismantling of the industrial conglomerates of that day, investigators . Japan has pro\!en that it can produce F- 15 the zaibatsu. "Daimler-Benz, supported by the Deutsche fighters with fewer defects than American factories, and Bank and by the German governmentand by buying up com­ would do the same with commercial aircraft, which "could panies involved in dissimilar fields . . . is in the process of save many lives." This is not done, because "the U.S. main­ becoming comparable to the Japanese zaibatsu. And with tains monopolistic aviation tteaties with many countries" the tie-up to Mitsubishi, it will acquire more knowledge on which make that hard to do. He endorses reforms described planning its strategy as a group," the author says. in a paper written by John A, Young of Hewlett-Packard, and in an MIT study, "Made in America." Japan can say 'no' Ishihara also announced that he will sue the Pentagon Japanese economic thinkers make no bones about the fact for the bootlegged, fraudulent translation of the book co­ they are talking about a different economic model than are authored by himself and Akio Morita, founder of Sony Cor­ the Anglo-Americans. Matsumoto quotes another Japanese poration. Ishihara said that helwill bring his suit as soon as economic thinker, Mamoru Kaido: "The world is looking for the authentic translation of theibook is released.

8 Economics ElK October 12, 1990 u.s. electric power supply in doubt

Public utilities commissions wreak havoc with electric power industry. reports Steve Parsons. PartII qfII.

The financial battering of the electric utilities industry careerists in public relations, media, and legal wrangling; through the combination of economic depression, social and only one has any background in science or engineering. industrial breakdown, environmental warfare, and Wall The CaliforniaPUC is now actually fundingenvironmen­ Street's financialmanipulation s, which was presented in Part talist groups directly. On July 18, it awarded $23,293 to the I (see EIR , Oct. 5, 1990), has been enforced and enormously Natural Resources Defense Council--one of the worst anti­ augmented by increasingly hostile actions of regulatory agen­ industrial organizations around-for its "substantial contri­ cies, especiallythe local public utilities comissions (PUCs). butions" as "intervenors" in regulatory decisions on utility Prior to 1973, pues had generally played a positive and rates adverse to the industry, to be paid by the state's three vital role in working with the industry to ensure provision of largest utilities. reliable electric power. Costs for both consumers and the Perhaps the worst case is Peter Bradford, the chairman utilities were more or less constantly decreasing, thanks to of the New York State Public Service Commission. Bradford an assured flowof profitsto the industry which were reinvest­ is an environmentalist who is opposed to nuclear power and ed in more efficient, modernizedplant and equipment. an advocate of zero-growth policies. In 1977, he was ap­ In the 1970s, all of that changed. In the words of a study pointed to a five-yearterm on the federal Nuclear Regulatory entitled "Rate & Regulatory Developments in 1988" put out Commission by President Jimmy Carter, where he had an by the Rate Regulation Department of the Edison Electric opportunity to vote his anti-nuclear views following the Institute in Washington, D.C., "the regulatory compact ... Three Mile Island incident. broke down." Supposedly responding to "public concerns" In 1968, he participatedin a Ralph Nader-sponsored study over alleged pricegouging and the "dangers" of nuclear pow­ on the Federal Trade Commission; from 1968-71 was an ad­ er and waste, PUCs have increasingly reflectedthe anti-sci­ viser to the governor of Maine on the environment, oil, and entific hysteriaof so-called public opinion and the growing power policies; and in 1971, became a member of the Maine policyinsanity emanating from Washington and New York. Public Utilities Commission when it was initiating policies on Wholly embracing the ideology of rabid environmentalists environmental protection and the investigation of utilities. and anti-industrialpurveyors , the media have retailed endless scare stories aboututilities and nuclear power, replete with Slashing rate increase requests incessant scandal-mongering and charges of cronyism be­ In the last few years, PUCs have hit utilities with an tween PUCs and the industry. escalating number of cuts in requested rate increases, as well as with outright denials and actual decreases. Such actions Enforcing deindustrialization dovetail perfectly with, and feed into, the Wall Street finan­ While the utilities have been circumspect in commenting cial warfare operations. on this shift in the PUCs, there is no doubt that the occupa­ Since 1986, these adverse rate request actions have been tional background and training of PUC members has shifted central in sharply lowering utilities' revenue per kilowatt­ dramatically, as has their roles. PUC members have always hour of electricity provided. In 1985, utilities on average been political appointees, beholden to the powers that be. received 6.72¢ per kilowatt-hour (kwh); by 1989, this had But in thelast two decades, they have more and more tended fallen to 6.60¢ per kwh. In constant dollars, the drop is a far to be the most labile technocratic hacks, dominated by the more dramatic 11%-from 6.68¢ in 1986, to only 5.89¢ last ideologies of pragmatism, the "free market," and "competi­ year (see Figure 1). tion." In California, for example, where the industry has Rate requests today are almost routinely lowered, partic­ been hit with tons of restrictions, rules, shifting standards, ularly for requests involving nuclear plants. Astonishingly, and arbitrary decisions, four of the five PUC members are for the first time, utilities recently made more requests for

EIR October 12, 1990 Economics 9 disallowances by PUCs" for failing to plan for contingencies FIGURE 1 and interruptions that they not only had no way of anticipat­ Revenue per kilowatt hour declines in ing, but had forced upon them by the PUCs and other regula­ absolute and constant dollar terms tory agencies. According to electric utilities analyst Sanford Revenue per kilowatt hour (in cents) Cohen of Morgan Stanley, there has been $13 billion in 7.0¢ imprudence disallowances since 1984.

constant 1982 dollars Two examples show the utter depravity of such PUC standards. ,,-- " " 6.5¢ " " The case of Illinois Power / / In March 1989, the Illinois Commerce Commission " " (ICC), the name for its PUC, ruled that only 27% of the added power capacity of the recently completed Clinton nu­ 6.0¢ clear power plant was actually needed, and that Illinois Pow­ er had "imprudently" spent $666 million too much on its construction due to alleged "waste" and bad management decisions. This meant, first, that Illinois Power would not be 5.5¢ able to raise its rates to cover more than 27% of the costs of construction-including the bonded debt-and would be forced to write off a huge chunk of its earnings. On top of that, the 27% would not include the $666 million, which the 5.0¢ utility would simply have to take as a loss. The $666 million "imprudence disallowance" forcedthe company to write off $346 million and to eliminate common stock dividends. The many years of delay in the completion of the Clinton 4.5¢ plant, which added hundreds of millions of dollars in addi­ tional expense, was caused by a combination of new regula­ tory requirements from 26 federal, state, and local agencies on plant safety and construction, new environmental regula­ 4.0¢ +--....---r---,---.----r----.-----.----r----.tions, and company concern that the ICC would not grant 1980 81 82 83 84 85 86 87 88 89 rate increases sufficient to meet the added costs. When the Source: Edison Electric Institute. ICC gave the utility the green light to complete Clinton, it was with the understanding that the added generating capacity of lowering rates than for raising them. The reason: to try to the plant was indeed "useful." control the damage they knew PUCs would wreak if utilities In fact, the Clinton plant ,has already seen full "use­ tendered requests for increases. fulness." During the heat wave and drought of 1988, Illinois There have been two criteria used by the PUCs that char­ Power was operating nearly at peak capacity. With Clinton acterize the primary rationales for cuts in requested rate in­ going full steam for 44 days that summer, the utility just creases: "excess capacity disallowances" or "used and useful barely met demand. Furthermore, with Clinton in operation, capacity," and "imprudence disallowances." Both criteria currentfor ecasted planning reserveis 25%; without Clinton, are inherently absurd. it would have been 1.3% for 1989, and actually negative in Many utilities that have requested rate increases to amor­ 1991-which would have made blackouts a regular occur­ tize the costs of constructing new capacity have been denied rence from 1988 on. On top of this, the four utilities in the either part or all of their requests on the basis of these criteria. Illinois Power region are on the verge of a capacity shortage.

PUCs have, in most cases arbitarily, de facto penalized utilit­ The Central Illinois Light Co .• for example, is constantly ies for building "excess capacity" that puts reserve margins scrambling to buy power outsideits own system. above projected levels of such anticipated necessary capacity Illinois Power appealed both rulings and filed a lawsuit for a given period. PUCs have given little consideration to challenging the order. At a hearing in June of this year, the increases in demand beyond the low projections, nor to the ICC modified the order, declaring that 61 % of Clinton was relatively long lead time needed to build a baseload plant. needed and "useful." Although four paragraphs stated that At the same time, shifting environmental and other regu­ 1 00% of the capacity of Clint()n would soon be "used and latory rules have disrupted and tremendously extended the useful," the increasingly "consumer-oriented" commission construction time of any new plant, driving up costs. But could not openly admit that its original decision was that far increasingly, utilities have been slammed with "imprudence off base, and thus compromised at 61 %.

10 Economics EIR October 12, 1990 The ICC thus wound up granting only $75 million of The PUC cut Philadephia Electric's request because of Illinois Power's requested $2 15.8 million yearly rate in­ "excess capacity" and "imprudence" disallowances. First, it crease. As a result, Illinois Power might have to write off ruled that the company now had 400 megawatts (MW) "ex­ another $248 million and suspend payment of preferred stock cess capacity" out ofthe total I, 100 MW the Limerick 2 plant dividends. can produce. Second, it said that the company had spent $60 After the 1989 decision, Moody's downgraded Illinois million "imprudently" due to bad management decisions that Power bonds to BBB, only one level above junk bonds, caused delays and suspended construction in the 1970s. virtually precluding any new construction and jacking up The PUC's decision is absurd on many counts. Philade­ further loan and interest costs. On May 23, just days before phia Electric now has 28% reserve capacity. After a PUC the June hearing, Moody's dropped its rating of Illinois Pow­ investigation in 1985, prior to the restarting of construction er's preferred stock from "uncertain" to "down"--even be­ on Limerick 2 in 1986, the PUC concluded that a reserve fore the results were in! capacity of 25% was reasonable. On April 19 , however, the Long-term investors are simply getting out, with utility PUC capriciously changed its earlier capacity ruling to 22%, stock subjectto the vagariesof speculation and manipulation and penalized the utility. on Wall Street. And that fuels more unfavorable rate deci­ The company's 28% reserve capacity figurecan hardlybe sions in a downward spiral that has buffetedthe industry over termed excessive. Unlike many utilities, Philadephia Electric the last two decades. "is now well-positioned to meet the demand for power in the What is about to further decimate Illinois Power and 1990s," says Neil McDermott, a company spokesman. Its utilities across the nation is the Clean Air Act. Illinois Power strong reserve margin has played a vital role in supplying has five 30-year-old fossil fuel plants in which they are re­ needed power to the nine companies in the Pennsylvania­ quired to put in scrubbers. The cost will be at least $1 billion, Maryland-New Jersey interconnect region. In 1989, the re­ which will have to be raised as ever more costly bonded gion provided by these companies had five instances of volt­ debt from investors that are increasingly less attracted to an age reductions during periods of heavy demand. If the com­ industry saddled with such costs, and from rate increases that pany's "excess capacity" had not been available, there could theICC will likely grant since it's for environmental reasons. possibly have been blackouts. As a result, utilities like Illinois Power have been forced As for the "imprudent" management decisions, the three to implement sharp austerity measures that are bound to af­ to four years of delays and suspension in construction were fect service. Illinois Power cut 500 positions-II% of ordered by the PUC itself because load use declined in 1976 staff-in 1989 to "save" $30 million per year, and closed or and 1978. Contributing factors were the soaring cost of fuel consolidated a number of offices in their service territory. from the oil crises, the Three Mile Island nuclear scare, Particularly affected will be customers in outlying areas. and zooming interest rates. All of these affected anticipated Service offices will have smaller staffs and repair crews, growth in demand and raised doubts about Philadephia Elec­ which will "save" all of $3 million a year, while repairmen tic's ability to finance the completion of Limerick. It was, will now have to travel f�her to serve smaller towns. therefore, "prudent" at the time for the company to back off To make matters worse, slick consultants and accoun­ from the anticipated service dates. If it had just gone ahead tantshave been hired to "streamline" and "modernize" com­ and continued building Limerick, it could well have been panymanagement practices. The so-called "dinosaurs," who slapped with lower rates for having built "excess capacity" cared nothing forMadison Avenue techniques but knew their that would not have been "used and useful." Nevertheless, business backwards and forwards, are being pushed out. the PUC ruling in April insisted that $60 million was "impru­ What is "in" are sophisticated-and expensive--efforts to dently" spent because of the delays! "build up the company's image" among the public through The rate request reduction will cost Philadephia Electric substantial expenditures on things like new company logos $306 million a year, and it has instituted an immediate 45% and "goodnews" advertising. cut in stockholder dividends and a program of deferred main­ The meat-axe austerity and "modernization"have caused tenance while carving $100 million-1O%-out of this such chaos that the company was forced to rehire some of its year's operating budget. To avoid layoffs, the company has more experiencedpeop le. had to offer early retirement to its employees. Top manage­ ment is taking pay cuts from 2-10%. Although bond ratings The case of Philadelphia Electric have not yet been lowered since the April decision, the mach­ On April 19, the Pennsylvania Public Utilities Commis­ inations over Limerick 2 since 1974 have lowered the com­ sion granted the Philadelphia Electric Co. only $242.2 mil­ pany's bond ratings to a level now just above junk bonds. lion of a requested $548.6 million rate increase. The com­ pany's rate request was made largely to recoup the costs of The 'conservation equals power' absurdity constructing its Limerick 2 nuclear power plant, which went Similar horror stories abound throughout the electric on line Jan. 8. power industry. Many utilities reported sharp profitdrops in

EIR October 12, 1990 Economics 11 the second quarter due to higher costs that they are not being permitted to recoup through needed rate increases. The latest Currency Rates is Baltimore Gas and Electric Co., which registered a 40.6% drop in profits for the second quarter and 35.4% drop for the first six months. Its earningsrate was half the level expected. The dollar in deutschemarks New York lateafternoon fixing Another recent hit was sustained by Commonwealth Edi­ I son Co. in Illinois, which reported a huge $398.8 million 1.90 loss in the second quarter, all due to refunds ordered by the

Illinois Commerce Commission and backed up by the state 1.80 courts . The utility was penalized $523 million for its alleged "imprudent cost overruns" in building three nuclear power 1.70 plants. The "imprudence" was almost entirely caused by reg­ l.60 ulatory and environmental rulings that delayed construction "-. .- -� of the plants and inflated costs far beyond original projec­ - r- � 1.50 t'-v tions. 8/15 8/22 8/29 9/5 9/12 9/19 9/26 1013 Even more lunatic are punitive rate actions to enforce power "conservation," which PUCs are viewing as the The dollar in yen alternative to building costly new plants. In cases before New York lateafternoon fixing PUCs in New York and Washington, D.C., electric utilities 160 have been told that instead of being granted requested rate increases to ensure the provision of reliable power, they 150 must enforce consumer "conservation" programs to cut

demand. 140 ..:.. - The July 7 Washington Post reported that Potomac Elec­ - tric Power, which had to black out 70,000 customers two 130 days before because of inadequate reserve capacity margins, was granted a 1.6% rate increase compared to the nearly 120 7% it requested. The commission, according to the Post, 8115 8/22 8/29 9/5 9/12 9/19 9/26 1013 penalized the utility for failing "to enact aggressive energy The British pound in dollars conservation programs." PEPCO blasted the Commission's New York lateafternoon fixing

action, stating that the increase was "inadequate to cover ..... costs." Its last rate increase was in 1984. 1.90 � " l...io... .- � In New York, the Public Service Commission has recom­ ,'"-� v- mended that Orange and Rockland Utilities have its rate fro­ 1.80 zen until Jan. 1, 1991, and then be granted 2.7% of its re­ 1.70 quested 5.8% increase-provided it includes a $3 million increase for conservation programs. 1.60 The PSC also proposed to "decouple" the relationship

between earnings and electricity sales to "eliminate both ex­ 1.50 tra profits from increased sales of electricity and lost profits 8115 8/22 8/29 9/5' 9/12 9/19 9/26 1013 resulting from energy conservation. " Thus, a company which is in business to sell electric power will now make money The dollar in Swiss francs New York lateafternoon fixing paying customers not to buy their product. The depths of this newspeak was evinced by the ••60 Bonneville Power Administration which announced a new

program on July 17 "to pay customers to find ways to use 1.50 less power. The program is called "billing credits." BPA actually calls this "acquiring" power; such cutbacks, it says, l.40 will mean "acquiring 50 megawatts through this program." These "policies have been quite effective in stopping new 1.30 - ; � � � - ....,. "'" r- construction and eroding investor confidence," says Edison V" ""'Y' Electric in its 1988 Rate Regulation report. There is no doubt 1.20 that such "effectiveness" will soon mean the end of the United 8/15 8/22 8/29 9/5 , 9/12 9/19 9/26 1013 States as an advanced industrial nation.

12 Economics EIR October 12, 1990 Book Reviews House of Morgan: thebank that'a te' theUnited States by Anton Chaitkin

of Wall Street and of American big business for about the last quarter-century of his life. Both his American-born The House of Morgan: AnAmerican Banking grandfathers were British agents, and his father Junius Mor­ Dynastyand the RIse of Modem Finance gan was an American-born British banker. by Ron Chernow Paternal grandfather Joseph Morgan III made his money Atlantic Monthly Press, New York, 1990 buying land in Hartford, Connecticut on behalf of British 812 pages, illus., hardbound, $29.95 investors. When Joseph's son Junius was two years old, Joseph's colleagues in the pro-British faction held a treason­ able convention in Hartford, trying to split up the new Ameri­ The thoughtful American citizen of today is aghast at the can Union. Junius later marriedthe daughter of the Rev. John nation's policies: imperial war-making abroad, and a virtual Pierpont. This Reverend later had great personal influence ban on physically productive work within the crumbling, on his grandson, the most famous Morgan. debt-ridden U.S. economy. Reverend Pierpont was an avid opponent of America in As a good reference tool, Ron Chernow's new book on its contest with Britain. His great-uncle was the famous Tory J.P. Morgan and company is helpful for those who wish to theologian Jonathan Edwards; Reverend Pierpont was hired understand and correctthe policy disaster. It is entertainingly by the family of Aaron Burr,Edwar ds's grandson, and lived written for such a dry subject as banking. Hundreds of anec­ with them in pomp and secrecy during the celebrated Burr dotes and quotes throw their little lights on American and Conspiracy to break up the Union. worldhistory of the past century and a half. The Rev. John Pierpont was a fanatic Calvinist, a crank The energy in the book is a limited "Get Morgan" ap­ like his great uncle. And the Reverend's grandson J. Pierpont proach not seen recently. In the face of such concentrated Morgan, Sr., though a vicious plunderer of nations and a evil, this is refreshing. Unfortunately, there is an exasperat­ sex-obsessed keeper of mistresses, was in his own way a ing lack of historical or philosophical perspective. The ques­ religious man , as Chernow indicates: tion is never directly asked: What was the purpose or the idea "[The] institution that most absorbed Pierpont [Morgan] behind this institution, the House of Morgan? An educated was the Episcopal church, which was part of the Anglican reader, either a history buff or someone schooled in econom­ Communion. Religion united his values-beauty, order, ics or banking, would come away from Chernow's book with hierarchical relationships, veneration of the past, pageantry many new leads toward answers to his own questions, even and pomp. As New York's most influential Episcopal lay­ if the author asks nothing profound. man, he attended the church's triennial conventions and par­ Then again, the author has a rather obvious though unan­ ticipated in its abstruse debates. . . . Religion moved him on nounced "agenda." He takes the defensive point of view of a more primitive level. ... [Sometimes] he seemed mes­ Jewish bankers, against Morgan. While this is not very hon­ merized by ritual and lapsed into reveries of mystic est history, it does allow certain things to be published under depth.... the auspices of the Eastern Establishment. A bit more about "Pierpont was fascinated by the occult. For years, he this, below. commissioned the astrologer Evangeline Adams to read his Chernow tries to establish the historical identity of the horoscope, asking her to study his stars on everything from House of Morgan through a huge pastiche, focused on the politics to the stock market." The Morgan family developed internal life of the bank. The thinnest material is on the an elite secret society of their own, "the Zodiac Club ...in Morgan family's origins in the early 19th century; the richest which each member took a different astrological sign." account covers the 20th century up to World WarII, with a By the time of his death, this bizarre man was the virtual tepid but useful story of the British partners. governor general of America. On behalf of British finance Analyzing the Morgan family itself is a fairly simple task. and government, Morgan had seized and monopolized all the J. Pierpont Morgan (1837-1913) was known as the boss most important branches of U. S. productive industry. He

EIR October 12, 1990 Economics 13 had bought out the great steel mills of his opponent Andrew Carnegie, reducing Carnegie to racialist imbecility-result: U . S. Steel . He had bought Thomas Edison's electric compa­ ny and broken the Franklin-like inventor-result: General Electric. His bank later squelched some pro-industrial, anti­ Wall Street critics, such as Charles Lindbergh, Sr. (his son the aviator married a Morgan partner), and hoodwinked oth­ ers, such as Henry Ford. Author Chernow does not consider the overall result of the Morgan-led British domination over the United States, which throws Morgan's religious views into sharp relief: a pagan, Roman-style empire was erected, with its "muscle" in New York and its "brains" in London. This country has come under the rule of a private government, an aristocracy J. Pierpont Morgan of financiers. fr om a J 903 photo. Morgan represented the British, as all evidence shows. But what does that mean? And why should that be such a tragedy for humanity? Chernow quotes J. Pierpont Morgan in 1873: "Neither usury and anti-industrialism gave to the London and New my firm nor myself will have anything to do, hereafter, di­ York banking centers the character of a vast criminal enter­ rectly or indirectly, with the negotiation of securities of any prise. The classic example is Morgan's repeated use of the undertaking not entirely completed; and whose status, by U . S. Marines in Central America, to collect debts and to experience, would not prove it entitled to a credit in every prevent stable nationalist governments from forming. If one respect unassailable." picks up Chernow already knowing something about this This is a simple statement, in opposition to industrial problem, then the book has some informational value. capitalism, by the old feudal merchant oligarchy of Europe, Finally, there are the Jewish bankers, whom Chernow the usurers. They only seize and control the industry which defends while exposing Morgan. builds nations, in order to put the brakes on it; as a matter of He says that German-origin Jewish bankers were black­ policy they do not build such industry themselves. Indeed, listed in the U.S. during World War I, because they were Baron Revelstoke of Barings bank put it more bluntly: "I either lukewarm in their support for the Anglo-American confess that personally I have a horror of all industrial com­ war, or they positively supported Germany. panies." The House of Morgan was the officialBritish government Chernow gives a good deal of evidence for the barbarian financier and purchasing agent within the U.S for World anti-industrial character of the Morgans and their banking War I, and the Morgans hated anything German. Then, as circle. Yet the author portrays the Morgans as conservatives, Chernow shows, the House of Morgan helped organize the who oppose the supposed over-speculative investment poli­ fascist dictatorships of Germany, Italy, and Japan (he never cies of patriotic industrialists and bankers such as Jay Cooke discusses the central Morgan role in the communist takeovers and Nicholas Biddle. Then Chernow deems it somehow a of Russia and China). Certain Jewish banking firms, such great irony that the House of Morgan "abandons conserva­ as Lazard Freres, Kuhn Loeb and Lehman Brothers, were tism" and leads the way into the leveraged buyout speculative staunch allies of Morgan's pro-fascism during the 1930s­ mania of the 1980s. then once again "hated Germany" after World War II. Cher­ But this is in fact no change in the Anglo-American Estab­ now makes no attempt to explain any of this. lishment, which is hijacking the nation in a post-industrial The quickest route to an answer to this puzzle lies in the "ecological" attack on civilization. religious views of the Morgans, and their banking allies. The Chernow gives a fair account of the three parts of the imperial enterprise is run by devout pagans, who convenient- House of Morgan: Morgan Guaranty Bank and Morgan Stan­ 1 y describe themselves as either "Christians" or " Jews." Mor­ ley in New York, and Morgan Grenfell in England. He main­ gan the enforcer of world racism, is a banking syndicate ' tains that the institution is loosely knit among the three partner with Lazard or Warburg, "Jews" who throw the epi­ branches, and shows quite clearly that the J.P. Morgan, Jr. thet "anti-Semite" against opponents of imperialism. A pene­ became merely a figurehead within his bank. trating look at the criminal subculture of Freemasonry , mysti­ But Chernow gives the reader only a glimmer of the cism, pornography, espionage, drugs, gun-running, and complex relationship between the House of Morgan and other money-laundering, would yield a more complete picture of ruling national and international institutions. By early in this the ideas and values that unite the various components of disastrous 20th century , the imperial force used to implement Morgan's Establishment.

14 Economics EIR October 12, 1990 Banking by John Hoefle

Bankers getting hysterical Currency has resident examiners at As the collapse escalates, the statements keep getting wilder, the 17 largest banks and nearly full­ time examiners in the 43 next largest. and the Fed doesn't seem to want to regulate. The plan, Seidman said, is to place resident examiners in each of the 400 banks with more than $1 billion in de­ EverybodY knows that the govern­ Chase Manhattan, Chemical, Bank of posits. The Comptroller's office has ment and the bankers are lying about America, Manufacturers Hanover, already decided to increase the num­ the state of the banking system today, and Bankers Trust as examples. ber of full-time examiners in the 10 but the lies they tell-and the manner Brumbaugh said that the Federal De­ largest banks from the current one to in which they tell them-are often posit Insurance Corp. 's Bank Insur­ as many as ten. quite revealing. ance Fund was also insolvent. Fur­ Not surprisingly, the bankers are In the early stages of the banking thermore, he characterized the upset by this proposal. The last thing crisis, the lies were told very calmly, operation to hide this from the Ameri­ they want is someone to take a close in an understated manner. As the cri­ can public as the "biggest coverup" in look at their books. sis escalated, a tinge of nervousness American history. The American Bankers Associa­ crept in. Now, as the magnitude ofthe Brumbaugh repeated those state­ tion is leery ofthe proposal, according disaster sinks in to even the thickest ments on Cable News Network's to spokesman Virginia Dean. "Banks of skulls, that nervousness has turned "Money Line" program Sept. 21, add­ want to be in compliance," Dean told to outright hysteria. ing that 400 U.S. banks have shown a the Wall Street Journal Oct. 2. She The banking system-not just a net loss since 1986 and that no one in complained that the examiners were few banks, but the entire system-is the governmentseems to know what's often inexperienced and obstinate. bankrupt. The banks are awash with going on. He warnedthat unless regu­ Regulators, she insisted, "need to put worthless paper, litter left over from lators take prompt action, the com­ real strong emphasis on the training the collapse of the Reagan-Bush spec­ mercial banking system will require a of examiners and basic interpersonal ulative frenzy. They're gone, pure savings and loan-style bailout. communications skills. There are and simple. The only thing left is to These weren't the first times some rough edges that need to be notify the next of kin. Brumbaugh had said such things, but smoothed over." Typical public rela­ Naturally, it is considered bad no public action had been taken tions idiocy. form in political and financial circles against him in the past. Better we More interesting was the response to say such things-it's considered should ignore him, the bankers of Federal Reserve System governor quite irresponsible and rude. It can thought. But no more. On Sept. II, in John LaWare, who told the Journal. also get you in a lot of trouble. a classic case of "shooting the messen­ "I'm not certain whether $1 billion is R. Dan Brumbaugh, a former dep­ ger," the Center for Economic Policy the proper cutoff or whether you uty chief economist with the now-de­ Research informed Brumbaugh that should just do that with banks where funct Federal Home Loan Bank his affiliation with the center was an examination has shown some Board, was given a demonstration of over. problems." that principle recently. Brumbaugh, When Brumbaugh accused the What's that, John? Only examine who next to EIR has been one of the university of caving in to pressure the banks where examinations have leading advocates of truth in banking, from the administration, center direc­ revealed problems? Ever hear of was recently fired from his job at the tor John Shoven laughably accused Catch-22? Stanford University Center for Eco­ him of "dreaming up conspiracies." LaWare continued, "I'd hate to nomic Policy Research. Hysteria is breaking out in other think we had a situation where Big Brumbaugh, appearing on theJuly places, too. FDIC chairman William Brother has to be there all the time." 31 television broadcast of ABC News Seidman recently revealed that federal Now, the Federal Reserve is one "Nightline," warnedthat almost all of regulators plan to increase the number of the key components of the U. S. po­ the largest commercial banks in the offull-time, on-site bank examiners at lice state. When the Fed starts raving U.S. were already insolvent or nearly the nation's largest banks. Currently, about Big Brother, you know they're so, specifically naming Citicorp, the Office of the Comptroller of the hysterical.

EIR October 12, 1990 Economics 15 Agriculture by Marcia Meny

Yeutter and Hills want blood Italy', Agriculture Minister Vito The European Community'sdecision to cut price supports to Saccomandi recently accused the United States of applying a double fa rmers is still not enoughfor GA TT' s "fr ee trade " vampires. standard ,n the GATT talks. Among other things, this refers to last month's action by the USDA to ship discount On Oct. 4, the European Commis­ turned down the 30% proposal (ad­ U. S. wheat flourto the Soviet Union, sion of the European Community vanced by Agriculture Commissioner to undercut European shipments. (EC) voted up a proposal on how to Ray MacSharry), by a narrow margin, Washington has done the same thing cut supports to the farmers of the 12- on the grounds that it did not lower in northem Africa. member nation group. This position subsidies to the farm sector enough to However, Secretary Yeutter and was taken for submission by Oct. 15, please Washington. But by October, Trade Representative Hills, like Presi­ to the final negotiations of the United they mustered the votes. dent Busb, have been mocking and Nations General Agreement on Tar­ Andriessen, Yeutter, Hills, and disdainful of other nations' interests, iffs and Trade (GATT) member na­ cohorts in Canada, Australia, and oth­ offarmefl! everywhere, and of the mil­ tions, which are in the last round of er top food-exporting nations, are bla­ lions now: dying for lack of food. talks to conclude a global treaty for tantly serving the interests of the In August, Yeutter went to Thai­ policing all agriculture trade . Called world cartel of food companies (Car­ land and Japan to insult theirfarm pol­ the "Uruguay Round" of talks on agri­ gill, Archer Daniels Midland, Conti­ icies, using his limited mental refer­ culture, the four years of sessions are nental , Bunge, An

16 Economics EIR October 12, 1990 Andean Report by Sara Madueno

Citizens resist 'Fuj ishock' centered on population as the central Peruvians are making their voices heard against the Fujimori factor in environmental pollution and speakers condemned the "Western" government's violent IMF austeritypol icy . development model for having de­ stroyed the environment. The anti-de­ velopment hysteria at this gathering was such that one speaker branded Ja­ Since taking office in late July, Pres­ selves the moral reserve to fight the pan as "eco-terrorist" because of the ident Alberto Fujimori has unleashed IMP's demand that Peru be wiped off level of industrialization it had unprecedented economic disaster on the face ofthe map. Entire cities, often achieved. Peru, with the "shock" program im­ led by local authorities, are organizing Earlier in September, a "Peruvian posedat the behest of the International protest actions to reject the govern­ Labor Gathering" attended by all the Monetary Fund (IMF). The Sept. 25 ment's policies. In such important major trade union federations touted issue of the London Financial Times southern cities as Arequipa, Cuzco, the same line. Sponsored by the un­ reported that production dropped by Puno, and Tacna, protest demonstra­ known Latin American Development 40% in August, and independent tions occur almost daily, including Association, the conference was economists are predicting a further trade union, academic, and business called to discuss the UNICEF report drop of 25 .8% in the GNP in the last organizations as well as housewives which was to have been presented quarterof 1990. Most small business­ and others. with much fanfare in New York on es, which employed over 75% of the Exemplary was the popular re­ Sept. 30. Under the guise of wanting country's economically active popu­ sponse in Arequipa, on Sept. 18. The to help the world's sick and impover­ lation, have practically disappeared, Radio Melodfa radio station had ished children, the report states, unable to withstand the government's called on the population to halt its ac­ among other things, that the high in­ anti-inflationary measures. tivities at noon and noisily protest the fant mortality rate in the developing Inflation for the month of August government's economic policies. sector coincides with "a high birth rate was 397%, according to the National Housewives banged on pots, drivers and rapid demographic growth." This Statistical Institute, but the increase in honked their horns, fire engines and fact, it says, causes "millions of peo­ the cost of the monthly market basket ambulances sounded their sirens, and ple to overexploit the environment" in of food staples was 47 1 %. The vast some churches even rang bells. Ev­ order to survive. majority of Peruvians is trekking to erywhere in the city-at universities, UNICEF concludes that the protec­ public soup kitchens for meals, where factories and businesses-paralysis tion and survival of childrenc an bestbe the nutritional value of the food is was total. At the same time, Radio guaranteed in the developing sector by poor. The Catholic Church, through Melodfa played the National Anthem. exchanging debt for programs that pr0- its Bishops' Conference, has sounded Protests occurred simultaneously in tect the environment. Many of the trade the alarm over the depth of the eco­ Tacna and Camana in the south, in the unionists who attended the conference nomic and moral crisis. The infant mountain city of Huancayo, and in the agreed that if Peru wants to integrate it­ mortality rate nationally is now 80.7 northern city of Cajamarca. self into the world economy-as de­ per 1,000 live births, and even higher The Fujimori government,and in­ manded by bankers-the government in the provinces. stitutions which back it, appear deter­ must necesarily dictate "birth control While Peru's creditors and local mined to apply the bankers' dictates, measures." oligarchy applaud Fujimori' s achieve­ despite the protest. In fact, a number Finance Minister Juan Carlos Hur­ ments and praise his brand of "democ­ of conferences held recently in Lima tado Miller indicated the govern­ racy," growing sectors of the popula­ have openly promoted genocide and ment's willingness to sacrifice Peruvi­ tion have indicated they are fed up and population reduction. ans to the bankers' agenda. On a are demanding other policy options. On Sept. 20-21, the Latin Ameri­ recent trip to Argentina, he told re­ The Independent Solidarity Move­ can Journalist Association (FlAP), porters there that Peru would honor ment and the Schiller Institute are pro­ backed by West Germany's Konrad its foreign debts no matter what and viding leadership to this nascent resis­ Adenauer Foundation, sponsored a would push debt-for-equity schemes tance. conference in Lima on "Journalism to allow creditors to buy up whatever Citizens are finding within them- and the Environment." Discussion part of the country they wanted.

EIR October 12, 1990 Economics 17 Business Briefs

Sweden "once morefe ll behind growth in demand" and rodent tests where the maximum dose to mice rice stocks fell to 13% of consumption, the of the Alar by-product was quadrupled, re­ Crisis grips Swedish lowest ratio since the world food crisis in the sulting in theproduction of tumors . early 1970s. Two consecutive poor harvests finance companies have since driven world prices up and newly self sufficientIndia, Indonesia, and the Philip­ Energy In an indication that an initial major blowout pines had again begunto importrice, illustrat­ could occurat the edge of the Westernfinancial ing the "narrow margin between self-suffi­ Indonesia plans to system, six major Swedish financecompanies ciency and potential famine in most of had trading on their stock suspended in late monsoonAsia ," the report said. "Prospectsfor build oil refineries September. a rapid recovery of production are dim." Tradingon the Stockholmbourse has been IRRIsaid surplusesand low marketprices Indonesiaplans tobuild four new oil refineries chaotic during the Mideast crisis, with the in the late 1980s gave researchers a "false im­ under joint ventures, mainly involving Japa­ main Stockholm index reaching its lowest pression that the world's rice problems have nese companies, the state oil firm announced point in two years on Sept. 27. On Sept. 24, been solved. They forgot just how precarious on Sept. 25 , the BangkokPost reported. the Nyckeln finance group announced it was the line is betweensufficient riceand potential Construction of one export-oriented re­ revising its 1990 estimated profits from 175 famine ." The institute stressed that overall finery, Exor-I, began in September in West million to 25 million Swedish kroners , due to contractionof the world economy, lack of for­ Java, a joint-venture with Britain's Foster losses in its realestate holdings in Sweden and eign exchange in many debt-ridden countries, Wheeler and two Japanese firms, Mitsui and London. Tradingin the company's short-term and strong agricultural protectionism in some Co. and Japan Gas Corp. Its products will in­ notes soon ceased, and other firms quickly industrialized countries accounted for de­ clude liquefiednatural gas , kerosene, and fuel came under scrutiny. pressed prices between 1982 and 1987, as oil . According to the London Financial much as productivity gains. Negotiationsare underway with the Nichi­ Times, Sweden's financial companies arepar­ men and Mitsubishi groups of Japan for the ticularly sensitive to the mood ofthe market, constructionof a 120,000 barrelper day (bpd) since theyrely for their liquidity on short-term Exor-ll, which is expectedto startoperation in trading in their loan certificates by major insti­ Environmentalism 1995 or 1996. Indonesia's state-sector oil firm tutions. Pertaminathis month awardedMitsui the con­ Reader's Digest reports structioncontract for a 140,000bpd refineryin Dumai. Alar scare fraud Agriculture The October issue of Reader's Digest docu­ Space Institute calls for ments the collusion of the Environmental Pro­ tection Agency and environmentalist radicals Pioneer 10 spacecraft massive rice production to ban Alar, an apple growthregulator, on no rational basis. seaching for heliopause "A massive increase in rice production is need­ The article by Robert James Bidinotto, ed over the next 30 years to avert extremely entitled "The Great Apple Scare: Pesticides The Pioneer 10 spacecraft, launched in 1972 large-scalefam ine," the Korea Times reported don't make our foodunsafe, but banning them with an expectedlifetime of21 months, passed on a study released in September bythe Philip­ might," attacks the CBS News program "fiJ the4.6 billion-mile, 50 astronomical unit mark pine-based International Rice Research In­ Minutes" which created a nationwide panic from Earth on Sept. 22, still searching for the stitute. after it presented conclusions of a Natural Re­ heliopause. One AU is the approximately 93 "In 30 years , the earth will be home to 8 sources Defense Fund report which said that million miles between the Earth and the Sun. billion people.Morethanhal f, 4.3 billion, will Americans were under the threat of cancer Pioneer to was the first spaceraft to pass be riceconsumers. Feeding them will require from chemicals like Alar. through the asteroid belt, and is now on a a massive increase in global rice production Bidinotto reports that the EPA was so dis­ searchfor the end of the Sun's radiative influ­ from today 's 470 million tons to 7fiJ million satisfiedwith the positiveevaluation of its Sci­ ence on interplanetary space, the boundary of tons ," which even if it could beachieved, "will entificAdvisory Panel on Alarthat the head of which is called the heliopause. Scientists origi­ merely maintain currentnutrition levels which the EPA Office of Pesticide Programs called nally thoughtthat the heliopause would bejust are already inadequate for hundreds of mil­ scientists into his office to demand, "How can beyond Jupiter, but the craft is to times that lions of people ," the Times quoted the report. you do this to us? ...I can't tell you what to distance from the Sun and has not encountered The report documents that at the close of do, but you might like to think about this one it. the decade, rice production growth in Asia again." The EPA then ordered a new round of NASA scientists describe its weak signal

18 Economics EIR October 12, 1990 Brilfly

• COMMUNIST CHINA'S ex­ as ''four billionths of a trillionth" of a watt of the debt-GNP ratio at the same level it hit in ports to the U.S.A. rose 43% last year power when it reaches NASA's Deep Space 1931 . Net interestpayments are at an all-time to $1 1 .99 billion, according to U.S. Networkantennas . Itis expectedthat commu­ high of 9% of GNP. Even in the depths of the Commerce Department figures, the nications will be lost around the year 2000 depression net interestgot no higher than 8%. Sept. 26 Journal of Commerce re­ when the spacecraft will be 6.9 billion miles Aggregate corporate debt is now about 16 ported. China's exports to Japan fell fromthe Sun. times greaterthan corporateprofits. At the bot­ 3.5% to $3.43 billion in the first half tom of the past two recessions (1973-5 , 1979- of 1990 and imports from Japan fe ll 82) debt exceeded profits by no morethan six 39.9% to $3.22 billion. Banking times." Liscio warnsthat "With the U.S. financial • THE DOLLAR COLLAPSE Manny Hanny attempts system so overloaded withdebt, there's just no has boosted Mexico's debt-the dol­ place to grow ....Data show total deposits lar value of Mexico's non-dollar for­ to steal Brazil's money plus currency in circulation from all insured eign debt-more than its bonanza deposit institutions gained no ground at all in from higher oil prices, the Mexican ManufacturersHanover, the New York-based the year ended March 31, the slowest rate of Secretariat of Finance and Public bank which is having its own financial prob­ monetary andcredit growth since the 1930s . Credit reported Sept. 28. Debt rose lems, seized $320,OOObelongingto the Brazil­ "The financialdislocations take more time $1. 124 billion since early August; iangovernment which was tobe forwarded to to filter through to the economy because the extra oil revenue only $1.1 billion. Jordanand presumably then to Iraqas payment fuseis longer. But the resultant layoffsand cut­ for the use of an Iraqi Airways flight to bring backs in capital spending arejust beginningto • THE DEBT BURDEN of U.S. Brazilian citizens out of Iraq. The bank did pick up speed, so it's only a matter of time until corporations is more than twice the eventually pay the money to the Jordanian the GNP numbers get real ugly. " level of the 1970s with 26% of cash Central Bank. flow spent on interest payments, up The New Yorkbranch of Banco do Brasil from 25 .5% in the second quarter of madethe payment to Manny Hanny the week the year, up from 15. 1 % two years of Sept. 19, but thelatter then refused to trans­ Develop ment ago , and up from 10% in the 1970s, ferthe funds.The flighthad been contracted to the Sept. 27 New York Times re­ fly the 260 Brazilian citizens from Baghdad, World Bank targets ported . Iraq. Paulo Tarso Flecha de Lima, head of the Nigerian steel-making • THE FEDERAL DEPOSIT In­ Brazilian delegationwhich hasbeen negotiat­ surance Corp. has extended deposit ing withthe Iraqi government for the releaseof The World Bank is attempting to preventsteel­ insurance to the $300 billion kept in the Brazilians, violently protested the move: making in Nigeria by pressuring that nation to overseas branches of U.S. banks ''This is an unspeakable procedure corning scrap the $5 billion Aj okuta Steel Co . plant, even though the coverage is not au­ from a bank which says it is serious, yet plays the largest in Africa, the Oct. I Journal of thorized by U.S. law and banks do in this way with the fate of 260 Brazilians. If Commerce reported. not pay insurance premiums on those this has something to do with the arrears of Aj okuta, which is planned to produce 5 funds, the Oct. 2 Washington Post Brazil's foreign debt, this attitude is even more million tons of steel annuaIJy , was supposed to reported. FDIC director of supervi­ shocking and scandalous." be finished by 1986. Now, an optimistic date sion Paul Fritts said the move was is late 1991. The upgrading plant to process made to avoid "negative repercus­ ore to the quality needed for steel-making is sions" and "confusion in the interna­ Debt still on the drawing board. tional markets ." Technocrats at the World Bank insist that Columnist admits debt annual demand for steel is less than 1 million • BRITISH SPENDING on re­ tons a year, but the Nigerian govemment vio­ search lags far behind that of France magnitude startling lently disagrees. "New industries will spring or Germany , a report issued by the up when we 've achieved the technological U . K. 's Science and Engineering Re­ "Be afraid. Be very afraid," of the financial breakthroughAjokuta will provide ," said Vic­ search Council states. The report's crisis warnsfinancial writer John Liscio in the tor Jegede, an assistant general manager at the author Dr. Henry Atkinson con­ late September Barron's Capital Markets plant. cludes that the German research weekly. The World Bank is blocking a $500 mil­ worker is better equipped and better ''Total [U.S. public and private] debt at lion support loan to Nigeria until Nigeria supported than is the British research $11 trillion is now more thantwice the size of agrees to "scale down its 1990 steel spending worker. the $5 trillionGNP ," Liscio writes. ''That puts plans."

EIR October 12, 1990 Economics 19 �ITillScience & Technology

Reflections o,n thecost of water and Mideast peace

There is no limit to thejresh water that can be supplied to the Middle Eastand NorthemAJr tca. Jonathan Te nnenbaum qfGennany s FusionEn ergyFo rum analyzes the economics qfwater.

Whether or not the follies of the Bush administration ignite Central Europe and the eastern United States, for example, a new war in the Middle East, two fundamental facts concern­ nearly the entirety of the water required to grow food is ing this region remain unchanged and unchangeable: 1) There provided directly "freeof charge" by relatively regularrain­ can be no lasting peace without real economic development fall; in much of the Mideast aDd North Africa, apart from for the majority of the people living there . 2) Economic coastal areas with "Mediterranean climate," the possibility development in this region depends most crucially on water, of agriculture depends upon extensive irrigation and water or more precisely on the improvement of fresh water supplies management systems. To this is added the growing require­ and water management systems. ments of industry (see Tables 2 and 3). Neither the require­ Lyndon LaRouche has developed these points in a series ments for water, nor the magnitude of fresh water throughput of recent statements on the Middle East crisis, in which he which can be generated per capitato support economic activi­ proposes relaunching economic development through infra­ ty , constitute fixed or bounded magnitudes. Both grow as structure projects, with emphasis on large-scale water proj­ a function of the per capita productive power of society. ects for "greening the deserts." This article explores some of "Productive power" means that self-expanding power of man the fundamentals of the economics of water, with reference over nature, whereby man increases the relative potential to the Middle East and North Africa. In the process we devel­ population-density of the human species. That means, op data and concepts which will be of value in further deliber­ roughly, the density of popUlation which can maintain itself ations on this topic. per unit surface area of any giventerritory (see discussion of this topic in LaRouche's book In De/ense o/ Common Sense, Water and population potential Schiller Institute, Washington, D.C., 1989). Like every other living organism, a physical economy The mastery of the fresh water supply is a crucial singu­ depends for its continued existence upon an increasing larity in the expansion of man's productive power. How throughput of water, of generally improving quality as well much water do we require per square kilometer of a given as quantity. While the absolute minimum water intake for territory, in order to maintain a given population-density at the survival of an adult human being is biologically fixed a given level of per capita productive power? And how is at about 2-4 liters of fresh water per day, the per capita that productive power applied to man's growing mastery of throughputs of freshwater required by an economy at modern nature, to the effect of generating increasing quantities and levels of living standard and agricultural and industrial pro­ qualities of water throughput per square kilometer and per ductivity, are some three orders of magnitude higher (see capita? Such improvement in water supplies provides the Table 1). foundation for realizing a higher level of productive power, Just growing the food to feed one person requires (de­ in a self-expanding negentropicproce ss. Scientificand tech­ pending on climate, form of agriCUlture, and diet) an average nological progress are the means by which that expansion is of 2-6 cubic meters (2,000-6,000 liters) of water per day. In accomplished.

20 Science & Technology EIR October 12, 1990 TABLE 1 TABLE 2 Water requirements in an Industrial economy: Water consumption in Israel, 1983 West Germany, 1980

Liters per capita Liters per Use per day" capita per Agriculture 91 1 Use day* Remarks Industry 70 Household and other 140 Highest quality 270 Households: Total 1,251 Iiters=1.251 Bathing 20-40 m3=329 gallons Laundry 20-40 Toilet 20-40 Other hygiene 10-15 Housecleaning 3-10 Dishwashing 4-7 Drinking and cooking 3-6 Supply of water per se Industry (excluding public 565 Varying qualities Two remarks should be added to define the nature of utilities power generation) Power generation by public 1 ,392 Low quality water requirements more precisely. utilities (coolant water) First, the function of water lies in its flow, or throughput, Agriculture not in any intrinsic property of water as a static object. To From rainfall: Direct water throughput of 2,740 realize this we have merely to reflect on the function which agricultural plants water serves in a living organism, an economy, or the bio­ (transpiration) sphere. This seemingly trivial idea embodies a profound Rainwater lost by ground 383 activity. evaporation, runoff, seepage truth , that substance exists only as Primitive sub­ From public supplies: Water for 23 stance is nothing but effi cient negentropic action, and nothing livestock, irrigation, etc. exists in an economy or in the universe apartfrom negentrop­ Other public and private uses 14 ic action and singularities derived from such action. What Total including direct rainfall 5,257 Total excluding coolant water 3,865 we call water is nothing other than a specificform or species for power generation of activity-andsimilarly for all those things which are often Total excluding direct rainfall 742 and coolant water for power spoken of, incorrectly , as "limited resources." generation The thirsting man does not actually thirst for water, but 3 flow *1 ,000liters= 1 m =264 gallons for the of water-the flow which threatens to be inter­ rupted when the outflow of water from his body is not matched by the inflow. (Salty water does not help him be-

TABLE 3 Examples of specific water requirements

Use Without recycling With recycling"

Minimum water consumption for growth of plant tissue 250-1,000 kg (0.25-1 m3) of water throughput for each kg of plant tissue grown above surface Water required by a field to grow a ton of wheat, under 500-1,500 m3 Central European climate conditions (low evaporation) Average amount water supplied to irrigated land in Israel 5,300 m3 per hectare per year Irrigation water required for growing cereals in desert 8,000-10,000 m3 per hectare per crop (rainfall nearly zero) Water needed by a milk cow per day 50 Iiters=0.05 m3 Steel production per ton 220 m3 5-15 m3 Paper production per ton 400 m3 120-190 m3 Coal mining per ton (anthracite) 25 m3 2-3 m3

*A variety of methods have been developed for reducing the rate of evaporation from soil and transpiration of plants, as well as recovering and recycling water through drainage and capture of water vapor in closed enclosures. By these means the net water requirement can often be reduced, at the expense of higher investments and running costs per unit area. The specific data are too complicated to go into here. It is important to note, however, that the reduction of water consumption per unit producegoes hand-in-hand with increasing the yields per hectare, i.e. with increasing intensity of agriculture.

ElK October 12, 1990 Science & Technology 21 cause its osmotic pressure blocks the flow of water into his tissues.) Thus, in an economy we are interested in the useful TABLE S throughput of water per unit time, surface area, and per capita Mean flows of major rivers at pOint of of the population. I discharge* The second point, implied in the term "useful throughput," is the requirement, that the flow of water pos­ sess certain qualities of organization in space and time. In Flow m3 per many areas of the Mideast and NorthernAfr ica, for example, River second precipitation is highly irregular and often takes the form of Amazon 120,000 Congo 61 ,000 brief, torrential rains separated by long periods of nearly zero Ganges-Brahmaputra 35,000 rainfall. Apart from overcoming the relative scarcity of fresh Yangtze 35,000 Niger 30,000 water overall in this region, we require water management Zambesi 20,000 systems to ensure a regular flowof water in the amounts and Jenissei 19,600 Mississippi 19,000 locations where it is needed, when it is needed. The control Lena 17,000 of the age-old flooding of the Nile, by the Aswan Dam and Ob 12,600 Mekong 12,000 other measures in Egypt, illustrates this principle. In Turkey, Parana 11,000 where annual rainfall varies between 250 mm and St. Lawrence 10,000 Volga 8,060 2,500 mm, more than 100 major dams have been construct­ Danube 6,430 ed. According to officialTurkish estimates, a total of approx­ Indus 5,700 Nile (at Aswan) 2,600 imately 500 dams and 430 hydroelectric projects will be Nile (at Delta) 1,600 needed to regulate Turkey's rivers and make full use of the Rhine 2,450 Murray 1,900 natural rainfall. Po 1,720 There is no intrinsic limitation on the fresh water Rhone 1,240 Vistula 930 throughput which can be supplied, even to the desert regions Euphrates 760 of the Middle East and Sahara. The potentials of modem Elbe 710 Flow of desalinated water corresponding to electric 92 technology demonstrate this very clearly. (See also the exam­ powerinput of 1 GW (assumes best stata.of-artval­ ples described in EIR , Sept. 28, 1990, "Water projects for ue with reverse osmosis, 3 kwh per rri', but not counting use of "waste heat.") the Mideast, Africa. ") 1) Fresh water can be transported by pipeline and canals, 'This does not include water which hes been"consumed" by evaporation, seep­ age, irrigation and other uses upstream of river discharge. The ratio of river from areas of higher rainfall-such as the highlands of Tur­ water usefully consumed, to fresh water Idst into the sea, differs greatly from key, the source areas of the Nile, and the Congo basin-into river to river. arid regions. Table 5 indicates the huge amounts of fresh water which presently flow, "unused" into the ocean, from the Congo basin in particular. Nuclear excavation techniques the cost of conventional techniques. By a combination of permit canals and basins to be rapidly dug at a fraction of pipeline and conduits, canals and pumping stations, fresh water can be delivered over thousands of kilometers. Large­ scale piping of fresh water is already done in California, for example. 2) Using state-of-the-art technology of reverse osmosis, TABLE 4 we can generate fresh water from seawater at the "energy Examples of unit cost of fresh water (Approximate figures based on 1987 dollars) cost" of about 3 kwh of electricity per cubic meter of fresh water produced. When electricity generation is combined Cost per U.S. mills with desalination, as can be done most advantageously with Example m3 pergallon the high temperature reactor, the "waste heat" from the gen­ Municipal water supply of Munich today $.50 1.9 eration process can be put to work in desalination, also. Average cost of water in Saudi Arabia (at 1.25 4.7 Thereby, a handful of nuclear powerunits rated at 5-6 giga­ present mostly from ground water) watts total electric output, would provide enough power to Price for desalinated water in Saudi Arabia 5.00 19 today produce a freshwater flowequivalent to the Euphrates River! Projected total cost of water via "Peace 1.50 5.7 (See Tables 4 and 5.) Pipeline" from Turkey to Saudi Arabia 3) Desalinated or raw seawater can be deliveredfrom sea (capacity 2.5 million m3 per day) Cost of water desalinated using high 1.25-1 .60 4.7-6 level to any elevation by pipelines and pumping stations. For temperature reactor/reverse osmosis example, it requires 1 megawatt of electric power to pump a combination (projection for 100,000 m3/ flow of 1 cubic meter a second over an elevation differential day plant) of 100 meters . This is hydroelectric power "runin reverse."

22 Science & Technology EIR October 12, 1990 A vineyard in Germany's Rheingau shows the abundance that can be produced with sufficient water. Just growing the fo odfor one person re­ quires an averageof 2- 6,000 liters of water per day . In Central Europe and the eastern U.S., nearly the entiretyof the water required to grow fo od is provided directly "free of charge" by rainfall; in much of the Mideast and North Afri­ ca' agriculture depends upon extensive irrigation and water management systems.

4) Through pumping and water treatment, the vast accu­ scale irrigation, we accelerate the water throughput of the mulations of fossil water, and other ground water under the biosphere and influence the climate to the effect of increasing deserts in Saudi Arabia, in the Sahel and elsewhere can be precipitation, eventually eliminating the deserts altogether. tapped. (Note: much of the accessible fossil water is heavily 8) Even if-as might actually be the case for the Moon­ mineralized, and requires treatment akin to desalination of sufficientraw water did not exist on the Earth, we could in seawater.) principle synthesize it, as necessary, through a combination 5) The electric and thermal power required by various of chemical and nuclear processes. This is not a realistic water treatment and pumping operations is available in virtu­ prospect at present, but will eventually become so in the ally unlimited quantities, through the technologies of, first, future . nuclear fission, and later, nuclear fu sion. The latter technolo­ gy permits us to generate from the trace deuterium (in the The question of cost form of heavy water, D20) contained in a single liter of These points establish the fact that the provision of fresh seawater, a power equivalent or greater than that produced water supplies is limited only by the development of produc­ by combustion of 300 liters of gasoline! That power is quite tive power, through technology. Often however, this fact is sufficientto desalinate the original liter of seawater and trans­ obscured by misplaced emphasis on apparent monetary cost. fer it to any point on the Earth. There are two points to be made in this connection. The 6) By developing intensive gardening within transparent economic costs of water supplies are determined by two ma­ enclosures, we can recycle transpired and evaporated water. jor factors: 1) the natural environment of the region (climate, By increasing the humidity in such controlled environments, geology, hydrology, ecology, etc.); 2) development of the the rate of water loss from plants and soil is greatly reduced, productive powers of labor, as reflected in technology. as demonstrated by various projects in Saudi Arabia. The It is obvious that to provide a given flow of fresh water same applies to special forms of irrigation (e.g., "drip" irriga­ per square kilometer of a desert area, requires a relatively tion) and drainage systems developed for desert agriculture, greater effort (other things being equal) than to provide the as well as irrigation of salt-r esistant plant varieties with water same flowdensity in an area with abundant rainfall or in the of lower quality . Similarly, recycling of water in industry vicinity of a great river. This circumstance is reflectedin the can decrease the nominal consumption of fresh water by widely varying supply costs of fresh water in different areas orders of magnitude (see Table 3). Generally speaking, such of the United States, for example. water-saving techniques accomplish an intensification of Apart from differences in natural environment, the cost useful water throughputs, at the cost of higher energy inputs of water is a function of the level of technology. Employing and other investments per unit area. the full potentials of nuclear and other advanced technologi­ 7) In the long term, by "greening the deserts" using large- es, the nations of North Africa and the Middle East might

EIR October 1 2 , 1990 Science & Technology 23 provide fresh water to their arid regions at a lower overall social cost, than the inhabitants of Central Europe expended for their water requirements three generations ago. We have only to compare the present projected costs of delivering nuclear-desalinated water to Middle Eastern deserts with ef­ fective cost (expressed in labor time) of fresh water supplies in Central Europe today and 75 years ago. The key to the matter is the dramatic increase in labor productivity over that period. That is the first point. This being said, we must still assume a significantly high­ er cost of water than would prevail in less dry areas of the world where the same technological level were employed. So, the cost of nuclear-desalinated water pumped from sea level into the Arabian Desert, for example, would be about twice the present cost of municipal water supplied to the city of Munich. The cost of piping fresh water from Turkey are projected to be in the same range (Table 4). Given that nearly the entire water consumption for agriculture in Germany is provided "free" from rainfall, this high cost of water trans­ lates into a higher cost for domestically produced food, a higher cost of maintaining labor at any given living standard, and a higher relative cost for nearly every branch of produc­ tion. This is particularly the case in an early phase of econom­ ic development, and raises an important point of economic policy. Should we then conclude, as economists of British "free market" persuasion do, that there is no point in developing The pipeline bringing waterfrom Istanbul's main reservoirto the agriculture and industry (apart from extraction and refining water treatment plant. Behind it is a 12th-centuryaqueduct that of oil) in the region, since these could not be competitive on was rebuilt in 1555 . Turkey contracted a study to export by a ' the world market? Should we conclude, in particular, that "Peace Pipeline" about 3.5 billion m of the daily "excess" water from the Seyhan and Ceyhan rivers to Syria, Jordan, and Saudi the oil-producing nations of the region should restrict them­ Arabia . selves to bil production, and import food and everything else from regions of the world where--owing to the lower cost of water-most production would appear to be cheaper? This would be to imitate the same arguments which the British in the world. Crucial to this was List's dual tactic of protec­ used to discourage the industrialization of Germany during tive tariffs and development of infrastructure. The tariffsys­ the first half of the 19th century! At that time, the relative tem of the German Customs Union, or Deutsche Zollverein, underdevelopment of Germany's industry and infrastructure ensured that none of a broad array of industrial commodities made the costs of domestic production appear astronomical could be imported and sold at less than the cost of production compared to the prices the British Empire was offering for of those same commodities in Germany, plus a certain mar­ dumping its wares on the German market. gin which the fledglingGerman industry required for invest­ ment into technological improvements. The relative price Parity and the development of labor power level maintained in this way is known as a "parity price." Friedrich List's answer at that time, which Lyndon (There are other means to achieve the same effectof parity, LaRouche has sharpened in crucial respects more recently, but the principle involved is always the same.) is essentially this: The goal and measure of economic activity Naturally, at firstthis meant paying a much higher price is not to acquire various commodities at the lowest possible for various commodities than the "world market price" as cost, nor to gain the largest margin of monetary profit. Rath­ determined, essentially, by the City of London. Within a er, the purpose is to accomplish the highest rate of growth in short time, however, the construction of railroads and other the productive powers of labor. Wealth resides exclusively infrastructure, together with development of technology, in the expansion of those powers . boosted the productivity of German industry to the point that So, by concentrating its efforts on developing science the costs of production became generally much less than and technology, and a higher level of education of its labor those in Britain--despite the British Empire's vast exploita­ force, Germany became the most powerful industrial nation tion of slave labor and looting of raw materials!

24 Science & Technology EIR October 12, 1990 Thesame principles apply to developing the labor power of theMiddle East and NorthAfrica today . That is the second point. Were the equivalent of "parityprices" to be introduced in systematic fashion for a variety of agricultural and industri­ al products, combined with crash programs of water and U.S. Postal Service STATEMENT OF OWNERSHIP, MANAGEMENT other infrastructure development, we would see an unprece­ AND CIRCULATION dentedboom in the internaleconomies of the region-{}espite Required by 39 U.S.C. 3685 therelatively high apparent costs of water. This brings up a deeper point concerning "cost." IA. Title of Publication: Executive Intelligence Review We must consider, both on the local level of individual lB. Publication No .: 027363 14 regions and nations, as well as on the level of the human 2. Date of Filing: September 25. 1990 race as a whole, how we can achieve the highest rate of 3. Frequency of Issue: Weekly except for the second week of July, the third week development of the productive powers of labor. For, ulti­ of August and the last week of December mately, in real economic terms, "cost" has only the signifi­ 3A. No. of Issues Published Annually: 50 cance of the difference in rate of development of the powers 3B. Annual Subscription Price: $396 4. Complete Mailing Address ofKnown Offi ce of Publication:1430 .K. St. ,NW, of labor resulting from alternative courses of policy. We Suite 90 1; Washington D.C. 20005

"pay" for a wrong policy in a deficit of that development 5. Complete Mailing Address of the Headquarters or General Business Offices which would have occurred had we followed a more correct of the Publisher:P.O. Box 17390, Washington D.C. 2004 1-0390 policy. Whereas, properly considered, we do not "pay" for 6. Full Names and Complete Addresses of Publisher. Editor, and Managing Editor a correctpolicy at all, but only gain from it. Publisher: EIR News Service, Inc.; 1625 'I' Sl. NW #625; Washington, D.C. Dependence on imports of consumer and other goods 20006 Editors: Nora Hamerman, P.O. Box 17390, Washington, D.C. 2004 1 -0390 in exchange for oil, constitutes zero development; this is Managing Editor: John Sigerson and Susan Welsh, P.O. Box 17390,Washington, virtually the most "costly" of all policies for a nation, short D.C. 20041-0390 of war. Furthermore, the lack of development of labor power 7. Owner: New Solidarity International Press Service, clo EIRNS P.O. Box 17390, Washington, D.C. 2004 1-0390; Nancy Spannaus, P.O. Box 17390, in oil-producingcountri es, such as Kuwait, that have adopted Washington, D.C. 20041 -0390 such British-style policies, is a net loss to the world economy Nora Hamerman, P.O. Box 17390, Washington, D.C. 2004 1 -0390 8. Known Bondholders. Mortgagees. and Other Security Holders Owning or as a whole. This is true no matter what the price of oil on the Holding I Percent or More of Total Amount of Bonds. Mongages or Other world market. For, all labor invested in the production of Securities: None. commodities (e.g., those tradedfor oil) whose consumption 9. For Completion by Nonprofit Organizations Authorized to Mail at Sp ecial Rates: Not Applicable. is not associated with a process of development of labor 10. Extent and Nature of Circulation power in the consumer, is labor deprived of its potential fo r Average No. Copies Actual No. Copies self-expansion- "dead" labor. In addition, the toleration of Each Issue During of Single Issue Preceding 12 Published Nearest such non-development must tend to draw the world into un­ Months to Filing Date controllable armed conflicts. A. Total No. Copies Printed 13.121 14.800 Theessential precondition for development of labor pow­ B. Paid Circulation er in the Mideast-North Africa region is essential infrastruc­ I. Sales Through Dealers and ture: above all, water supply and water management in con­ Carriers. Street junction with power generation and distribution, transport Vendors and Counter Sales 3,458 3.150 and communications. Investments in such infrastructure are 2. Mail Subscriptions 7.647 9,074 by far the most profitable in real economic terms, of all C. Total Paid Circulation 11.131 12.224 D. Free Distribution by investments in this region. Mail, Carrier or Other Actually, such a development program would give the Means. Samples, Complimentary. and nations of the region a unique advantage over other regions: Other Free Copies 1,045 1,086 The experience of intense problem-solving efforts using E. Total Distribution 12,177 13,310 F. Copies Not modern technologyto "conquer the deserts," will transform Distributed the quality of culture and labor power in a manner which I. Office Use, LeftOver, would hardlybe possible without that challenge. It resembles Unaccounted, in some respects the manner in which, in previous ages, Spoiled After Printing 944 1,490 nations were sometimes forged by the trials of war. This time 2. Return From News the war is against the deserts, not men, and we gain the Agents 0 0 G. Total 13.121 14,800 blessings of peace between nations and the future contribu­ II. I certify that the statements made by me above are correct and complete. tions of the millions of individual citizens of the Mideast­ NORA HAMERMAN . Editor. North African countries, to the progress of humanity as a whole.

EIR October 12, 1990 Science & Technology 25 ITillFeature

Mideast crisis: Thatcher targets German unity

by Kathleen Klenetsky

On Oct. 3, the two Germanys finallybecame one nation, ushering in the prospect for a new era of unprecedented peace and prosperity for Europe. With its highly productive economy, a reunited Germany has the capacity to become not only the center of an industrial renaissance that can salvage the dying economies of Eastern Europe and even the Soviet Union, but the powerhouse for a global economic recovery. Yet George Bush, Margaret Thatcher, and Fran�ois Mitterrandall turneddown invitations to attend the formal ceremonies in Germany marking the new union, on the grounds that they had more important things to do. That snub speaks volumes about the real attitude of the Anglo-Americans toward German unity. Margaret Thatcher may have fired her Chancellor of the Exchequer, Nicholas Ridley, last summer, for publicly comparing the currentleadership of West Ger­ many to Adolf Hitler, and charging that Germany w�s scheming to "take over the whole of Europe," but he was only saying in public, what his confreres among the British and U.S. Establishments were ranting about in private. Ridley's statements represent the actual policy of the Anglo-Americans towards reunited Germany­ as well as to any other country, such as Japan, which has the temerity to have a functioning, productive economy, and the potential for using that economic power as a basis for contesting Anglo-American political dominance. The Anglo-Americans' bitter hostility has manifested itself in numerous areas, increasing in intensity over the past several months. The media in the U.S. and Britain have been full of scare stories warning that a reunified Germany will become a new "Fourth Reich," that Europe will be dominated by Germany, that Germany is turningEast . Racist propaganda about the "nasty Japanese" who want to "take over the U.S. economy" has reached fever pitch. Moreover, the U.S. is waging a full-scale trade war against the two countries, a war which has escalated significantly since the Gulf crisis erupted. During the course of the WIst Congress, more than 60 pieces of anti-Japanese trade legislation have been introduced. Since "Ope�ation Desert Shield" began, numerous measures mandating trade sanctions or other forms of punishment

26 Feature EIR October 12, 1990 The aircraft carrier USS Saratoga, which is now deployed to the Mideast

� as part of the reckless Z Anglo-American show of ; fo rce in the region . against countries that don't do their "fair share" to support industrial" lunacies promoted by Washington and London the lunatic U.S. deployment, have been proposed. Germany will, like communism, collapse of their own dead weight. has been accused of "contemptible tokenism" and other sins The Germans and the Japanese are becoming more open for failing to deploy troops-an act expressly forbidden by in acknowledging that they are seeking to create a new global its constitution. economic system, out of the decaying shards of the present President Bush himself upped the ante in his speech to one. In a recent issue of the monthly Japanese magazine This the International Monetary Fund-World Bank conference on Is, author Toshiaki Matsumoto cited a Japanese analyst who Sept. 25 , in which he demanded that the upcoming Uruguay observed that, while the socialist system has collapsed, and round of General Agreement on Tariffs and Trade (GAIT) the future of the American-style free market economy looks eliminate agricultural subsidies. This was an attack on West­ dim, the systems which are proving successful are those of ern Europe, whose agricultural base would be wiped out. Japan and Germany. These two economic systems, he noted, And finally, Washington, acting at the behest of its Brit­ have several common characteristics, including the fact that ish cousins and on the ludicrous pretext that the Soviet Union their respective governments intervene to foster the process no longer represents a threat, not only has reoriented its of industrial development and production. The analyst con­ military to fight depopulation/resource wars against the cluded that the world is seeking a new economic system, and South, but has also shiftedthe focus of its intelligence appara­ that Japan and Germany are serving as models. tus away into economic warfare against its European and By the same token, the British and Americans are now Asian allies. aggressively marketing their version of a "new global order." Both Bush and Thatcher have recently called for the creation A new Roman Empire of a new order-a concept which bears a striking resem­ Why should the United States feel compelled to line up blance to the very Nazi model that has been fraudulently with a bunch of British losers to wage war against its allies­ invoked against German reunification, since the model that and against its own self-interest? the Anglo-Americans are following is that of pagan imperial For the simple reason that the Anglo-American elite con­ Rome. siders German reunification to be a major challenge to its There is nothing stopping the Anglo-Americans from economic and political power, and rightly so. If Germany, junking their own failed policies, in favor of the "American along with Japan, continues to demonstrate the success of System" ones that have proved such a success in Germany dirigist, production- and investment-oriented economic poli­ and Japan. But, in a classic case of cutting offone 's nose to cies, and uses these policies to develop Eastern Europe, spite one's face, they have opted instead for a strategy of Ibero-America, Asia, and Africa, then the free market, "post- undercutting German and Japanese development--even

EIR October 12, 1990 Feature 27 though, by doing so, they will be wiping out the basis for Japanese industrialexpo rts. their own potential economic recovery. In September, when oil was approaching $30 a barrel, The British in particular have been brazenly open about Morgan Stanley calculated that at that price, it would take their intentions. In his infamous Spectator interview, Nicho­ 38% of Poland's hard currency i.-come, 90% of Czechoslo­ las Ridley defined Britain's mission in Europe thus: "We've vakia's, and 20% of Hungary's, to pay for oil imports. In always played the balance of power in Europe. It has always poorer nations of Asia and Africa, the situation is even worse. been Britain's role to keep these various powers balanced, Aside from destroying these countries' ability to pay for any and never has it been more necessary than now, with Germa­ other needed capital investment$ or goods, the economic ny so uppity. " dislocations caused by Bush's oiliembargo will create politi­ cal instabilities that could threaten the development of de­ Mideast war against Europe and Japan mocracy in EasternEuro pe, leading to the destabilization of The Anglo-Americans had been counting on the Soviet the entire region. Union to derail, or delay, German reunification,but Moscow Even more dangerous is th� prospect that the United frustrated that plan, when it decided that its own catastrophic States will occupy the Mideast �il fields permanently-as economic situation required the assistance which a united hinted at by U.S. government qfficials and advisers, and Germany could offer. At that point, London and Washington warned about by James Akins, the former U.S. Ambassador decided that more drastic steps were necessary, namely, trig, to Saudi Arabia (see EIR , Oct. 5, ;1990, page 30). gering the current crisis in the Mideast. The Anglo-Americans are also using their rigged crisis The final decision to tum the Iraqi move into Kuwait into to try to blackmail the Germans and Japanese to adopt the a full-fledgedmilitary conflictoccurred at the 40thAnniversa­ same neo-colonial looting strategy that lies at the core of the ry of the Aspen Institute in Colorado Aug. 3-5. For the few Bush-Thatcher new world order. ; days following Iraq's action, Bush had not shown any particu­ The U. S. has already managed to extortbillions of dollars lar inclination to deploy the U . S. military. But all that changed fromGermany , Japan; and other nations, to pay for its lunatic when he and Thatcher got together at Aspen. Suddenly, the adventure in the Gulf, but continues to insist that they take President was howling for blood, and "Operation Desert on a direct military involvement. The U. S. Congressis doing Shield" got under way. The British press made no bones about its bit, by passing a slew of measures to slap various forms the fact that it was the Iron Lady herself who had "put some of trade and other sanctions on Germany, Japan and any other spine" into Bush, persuading him that war was a small price country which doesn't do its "fair share" in the Gulf. The to pay to show the world just who is in control. point is not simply to get additional forces into the area, but to It was hardly a coincidence that, at the Aspen fete , Bush line up Germany and Japan with the British and Americans, unveiled a new U. S. military strategy in which the mission against the nations of the South. In addition, the U.S. and of the American armed forces is now defined as fighting British governments are exploiting the Iraqi situation to push "regional wars"--codewords for colonialist interventions­ through a new round of internationalnon-prolif eration mea­ or that Thatcher's speech dwelt on the supposed problem of sures, aimed at shutting down the transferof technology from "overpopulation"-since these are crucial elements of the advanced industrial countries to the Third World. We explore Anglo-American new global order. this issue in greater depth in the following article. Operating under the dangerous delusion that such an in­ Even if we arevery optimistic, and assume that a Mideast herently unstable situation can be crisis-managed, the Anglo­ military conflict will not spill over into general global war, Americans believe that the Gulf mess can be used against the consequences of the Anglo-Americans' stupid games will Japan and Germany in several principal ways. nevertheless be tragic. The most obvious is the "oil weapon." Both Germany The world as a whole is in dire economic straits. Britain's and Japan are deeply dependent on Mideast energy sources; economy is a pathetic joke, and America's is fast becoming Japan, for example, receives 12% of its oil imports from Iraq one. Whole parts of the Third World, especially in Africa, and Kuwait, and 30% from Saudia Arabia. Ninety percent are dying. The newly liberated countries of Eastern Europe of Europe's energy is provided through imports . Bush's oil will be unable to survive without massive infusions of capi­ embargo has sent shock waves through the Japanese econo­ tal . In this crisis, German and Japanese economic strength my, and has put an additional burden on a Germany strug­ aredesperately needed as the levers to a new global economic gling to finance the reconstruction of its eastern half. system, based on the concepts of investment for production And the situation is getting worse by the day. With the associated with Alexander Hamilton. The United States' fu­ price of oil rising to $40 a barrel, amid predictions that it ture survival depends on the success of Germanreunification could soar to $80 or more, the global economy will suffer and the Japanese miracle. If President Bush continues to line catastrophic damage. Skyrocketing oil prices are already up with the British side, it will be destroying its last hope-­ wreaking havoc on the fragile economies of Eastern Europe and that of the world-for avoiding the worst economic col­ and the Third World-the obvious markets for German and lapse in history .

28 Feature EIR October 12, 1990 West indulged in the naive belief that a new, threat-free world Documentation had arrived. But today it should be crystal clear that such a policy is unacceptably dangerous. If Germany is to enjoy the status of a leading Western power it so desires, the Willingness of some unscrupulous German entrepreneurs to disregard elementary common se­ curity interests in order to make a profit-and of the Bonn Main Europe government to tolerate, if not facilitate, such practices­ target is must end. President Bush can help bring this about by utilizing From an interview with Jordanian Prime Minister Mudar authority available to him under existing U. S. law to impose Badran published in the Jordan Times on Sept. 19: import sanctions against German companies ....Congress The U.S. forces were aiming to deploy at the oil fields should hold hearings into German export practices. The mod­ so thatWashington can reign supreme in the coming decade el for these hearings could be the congressional inquiries of as a sole superpowerin the face of a united Europe by 1992, half a century ago when those who sold Japan scrap metal which would constitute a major world power competing with subsequently used to attack U. S. forces were held to account. the United States. Washington ...realizes that whoever lays his hand on the oil of this region will be able to control From comments on the floor of the House by Rep. John the fate of Europe. Dingell (D-Mich.), in introducing the "Desert Shield Bur­ den-Sharing Act of 1990" on Sept. 11: From the Center fo r Security Policy's report "Rabtagate: I have to join my colleagues and all citizens of this nation The Inside Storyof German Collusion in the Libyan Chemical in expressing my outrage at those nations who have chosen Warfare Program" : to sit upon the sidelines, hoping to reap the windfall of a . . . The record suggests that there exists at the highest secure and stable oil supply at the expense of American ef­ levels of German industryand officialdoma fatal willingness fort, American money, and American lives .... to subordinate common security interests to narrow parochi­ I am therefore introducing a bill to encourage meaningful alismand greed. . . . contributions from our world neighbors for resolving this In light of this evidence, the Center renews its call for crisis. The "Desert Shield Burden-Sharing Act of 1990" President Bush to utilize authority available to him under would impose an additional 20% duty on the goods of nations existing U . S. law to impose import sanctions against German that the President decides are not paying their fair share for companies judged to have violated regulations controlling Operation DesertSh ield .. .. exports. It also urges Congress to hold urgent hearings into During this crisis, the President has been able to encour­ German export practices and to examine with care the real age many nations to provide support; however, it is notewor­ risksthey pose to American and Western security interests­ thy that the Japanese propose to give us $1 billion, less than and the additional costs imposed on U.S. defense expendi­ one month's cost of this undertaking, and West Germanyhas tures. indicated that it will pay the Soviet Union $8 billion to house Under no circumstances should the United States assent and support some 300,000 Soviet troops in East Germany, to German demands for further liberalization of the multilat­ while contributing only a minuscule amount to the support eral export controlregime unless and until Bonn can demon­ of our undertaking ... . strate the adoption of a far more conscientious technology security policy and effective enforcement of existing ar­ Peregrine Worsthorne, stepson of Montagu Norman, the rangements. Such an approach should, in particular, govern Bank of England head who bankrolled the Nazis, has been a the U.S. Senate's imminent action on legislation reauthoriz­ rabid critic of German reunification. The fo llowing is from ing the Export Administration Act (due to expire on 30 Sep­ a colloquium essay on "America's Purpose Now, " published tember 1990). in the Fall 1990 issue of The National Interest: The end of the Cold War does not put an end to the need From "German profits iiberallies ," by Frank Gaffney, direc­ for some American presence in Europe. But it changes the tor of the Center fo r Security Policy, published in the Sept. justification for that presence. During the last fortyyears , the 4 Washington Times: justification has been to keep the Russians out. In the next . . . The view of both the German governmentand many period the justification will be to keep the Germans down; or German companies toward export controls might be best if not exactly down, at any rate not too triumphantlyup .... summed up as Profitstiber Alli es. This reckless and irrespon­ I see a British-French-American military alliance as be­ sible course was ill-advised when, with the fall of the Berlin ing a successor to NATO with the purpose of maintaining Wall and prior to the Iraqi invasion of Kuwait, many in the some sort of European balance of power.

ElK October 12, 1990 Feature 29 of Nuciear, Chemical, and DeliveryCa pabilities in the Third World. It calls on the United States to impose a set of new global Banning technology non-proliferation regimes, dealing with chemical, nuclear, and missile technologies. The authors give the game away when they observe: "In a number of key respects chemical for theThird Wo rld proliferation differs from nuclear proliferation. First and foremost, any country with a petrochemical, pesticide, fertil­ by Kathleen Klenetsky izer, or pharmaceutical industry has the potential in terms of equipment, raw materials, and technical expertise to produce One of the key underlying themes in the war hysteria over some chemical warfare agents� It is this daunting problem of the Iraq-Kuwait conflicthas been the role of advanced nations 'dual use' technology that makes the danger of commercial in supplying potential weapons technology to the Third misuse much more of a problem in chemical proliferation." World. This is evident from the hue and cry that has been In other words, having the� capability to produce fertiliz­ raised over the allegation that Iraq developed a chemical ers makes a Third World cOUliltry a threat, because it could weapons capability, from technology imported from the also at some point use the same!technology to produce chemi­ West. The moral of the story is supposed to be that it is cal weapons. inherently dangerous to give any kind of sophisticated tech­ The authors call for "greater European and Japanese nology to a developing country. involvement" in curbing the spread of chemical and other The whole non-proliferation issue is largely a scam. It is technologies, and for the "crafting of a durable, effective designed primarily to establish the basis for preventing any sanctions policy" against violators of non-proliferation North-South commerce in technologies that are essential to agreements. Some of their proposals have been incorporated the industrial development of the less-developed sector. The into a new intelligence bill (see accompanying article), for Anglo-Americans want to maintain the Third World as a which Inman acted as adviser. ; source of cheap raw materials, and to prevent it from becom­ It is not just the Aspen gang which is pushing this scenar­ ing a market for the capital goods of functioning economies io. The Center for Security Policy, a Washington-based think such as Japan and Germany's. tank run by the same network behind "Project Democracy" In this regard, it was hardly fortuitous that the venue for of Iran-Contra fame, is also on the case. In early September, President Bush's fatal decision to militarily intervene in the the CSP issued a report entitled "Rabtagate: The Inside Story Persian Gulf was an Aspen Institute conference. Long associ­ of German Collusion in the Libyan Chemical Warfare Pr0- ated with Henry Kissinger and other stars of the Anglo-Amer­ gram." According to a CSP press release, the report con­ ican firmament, the Aspen Institute has been a major link in cludes that Germany's sale of technology to Iraq and Libya the "special relationship," through which American brawn is "the product of an as yet un¢hanging, fatal willingness at has been impressed to serve the strategic aims of Britain's the highest levels of Germany industry and offi cialdom to dessicated oligarchy. subordinate common Western! security interests to narrow The institute was one of the godfathers of the environ­ parochialism and greed [emphasis in original]." mentalist movement in the United States, and some of its The report demanded stiff sanctions against German officials have privately boasted of its success in discrediting companies that violate export control agreements. On Sept. the American nuclear energy industry. Aspen was also instru­ 13, the Senate voted up two amendments, introduced by mental in forcing through the Nuclear Non-Proliferation Sen. Jesse Helms (R-N.C.), providing for the "imposition Treaty of 1977, which, using the alleged threat of nuclear of sanctions on countries whiclh use chemical or biological terrorism, made the development of desperately needed nu­ weapons and on corporations which assist Iraq, Iran, Syria, clear energy in the developing sector virtually impossible. Libya or certain other countrie$ to obtain, develop or stock­ Among other things, it disrupted the German plan to develop pile chemical, biological or nuclear weapons, and for other Brazil's nuclear energy capability. purposes." According to a reliable source, Helms was inspired by Non-proliferation = non-development the CSP report, and "definitely had Germany in mind." A Now, Aspen has taken the lead in a new orgy of "non­ CSP staffer admitted that the real target of the report, and of proliferation," this one aimed at preventing industrialized Helms's action, was German reunification. nations from helping Third World countries to develop fertil­ Just days before the CSP's report was published, CSP izer and petrochemical industries. It has established a task board member Richard Perle was quoted in the Financial force, chaired by retired CIA deputy director Adm. Bobby Times saying that there is a new,role for CoCom (the Coordi­ Inman and Harvard's Joseph Nye, which recently produced nating Committee for Multilateral Export Controls) in polic­ a book entitled New Threats: Responding to the Proliferation ing strategic trade between North and South.

30 Feature EIR October 12, 1990 Congress to authorize covert operations against U. S. allies

by Herbert QUinde

The U. S. Congress is about to pass an intelligence authoriza­ to a new priority on international economic concerns. CIA tion bill which, for the first time since the end of World director William Webster has elaborated the intention to shift War II, will no longer define the Soviet Union as America's toward bashing U.S. allies instead of the Soviets, in several foremost enemy, but instead designate "competing industrial pronouncements over the past year(s ee box). nations" such as Germany and Japan, and Third World na­ tions such as Brazil and Iraq as the new threat to U . S. national Economic espionage? security. The House of Representatives version of the Intelli­ A report prepared by the Senate Select Committee on gence Authorization Act (H-5422) is scheduled for a vote Intelligence in July under the signature of Sen. David Boren before the congressional recess at the end of October. The (D-Okla.), which "reports favorably" on the legislation, de­ Senate version of the bill (S. 2834) was voted up in early tails the bipartisan policy change in a section titled "Econom­ August. Former CIA director Richard Helms and former ic Espionage." It states: "During the Committee's close hear­ CIA deputy director Adm. Bobby Inman played significant ing on the U.S. counterintelligence programs, the FBI advisory roles in formulating the legislation. director and the senior State Department, Defense Depart­ The bill for the first time gives "statutory authority for ment, and CIA officialsdiscus sed the possibility of an emerg­ the President to authorize the conduct of covert actions by ing economic espionage threat, including the collection of departments, agencies or entities of the United States, includ­ U. S. proprietary and unclassified information by foreign ing the Executive Officeof the President," as well as author­ powers. In the course of refocusing the national counterintel­ izing the use of third parties and countries to fund or carry ligence strategy for the 1990s, more attention is being given out covert operations on behalf of the U.S. government. to the economic espionage issue. There is evidence that fo r­ Hitherto, covert operations were not legal by statute, but eign intelligence services, including services that are not were authorized by Executive Order. The bill also would . traditional' adversaries, have conducted clandestine opera­ legalize the provisions of President Reagan's infamous Exec­ tions in the United States to obtain information to be used utive Order 12333, allowing the President to use any Execu­ fo r their national economic advantage [emphasis added] ." tive Branch agency to carry out intelligence operations, do­ "The Committee believes," the report continues, "that mestic or foreign. Currentlaw limits such actions to the CIA. the intelligence community should concentrate its efforts in These were the central issues raised by Congress while determiningthe nature and extent of such operations, so that investigating the Iran-Contra affair-and yet not a peep has policymakers can assess whether they constitute a growing beenheard from a single member of Congress in opposition threat to U . S. interests and whether new counterintelligence, to the dramatic tum in intelligence policy. Back in the days security, or other national policy initiatives are required. of the Cold War, when communist nations were deemed to Therefore , the Committee is directing that the Director of be a fundamental threat to the security of the United States, Central Intelligence prepare a comprehensive intelligence the Congress sported a dissident and powerful grouping that community study by March 1, 1991 to evaluate the threat of kept the CIA and the rest of the so-called "intelligence com­ economic espionage and foreign intelligence services' efforts munity" on a fairly short leash. But in what President Bush to negate our nation's competitive advantage through such and British Prime Minister Margaret Thatcher call today's methods as technology transfer and international financial "new world order," Congress has decided to give the foreign and trade transactions." policy content of Oliver North's Project Democracy carte A multi-agency intelligence community task force on blanche. "competitiveness" has been created to produce long-term President Bush himself announced the policy shift during estimates of the ramifications for the U.S. economy of the the 1989 NATO summit in West Germany, where he trum­ economic and financial policies of allied nations, especially peted a"historic shift" from East-West military confrontation NATO members and Japan, as well as political and economic

EIR October 12, 1990 Feature 31 trends internationally. Sources say that the future plans of a tions and their capabilities; 5) a table describing the capabili­ reunified Gennany have been amajor focus of intelligence ties of ballistic missile and other deliveries.syst ems; 6) a analysis. table describing the characteristics of chemical and biological "The task force," reports the Boston Globe, has also stud­ weapon agents and toxins; and 7) a map or maps showing the ied how protectionism and other trade strategies of foreign location of the sites of suspect and confinned nations in­ countries, such as Japan, affect the ability of American com­ volved in the proliferation of weapons of mass destruction." panies to do business abroad; what are the likely foreign reactions to U. S. efforts to counter those trade strategies; and how American dominance is threatened in high-tech indus­ tries. " Although there have been credible rumors that CIA and other U.S. agencies have been assigned to engage in industri­ CIA's Webster charts al espionage against foreign companies, the CIA has denied it. Some intelligence community critics have pointed to the economicwarfare course new authority given by the intelligence legislation to the Defense Department to create "proprietaries," dummy com­ Director of Central Intelligence William Webster out­ mercial finnsoverseas as a cover for collecting military intel­ lined the administration's "bhsh the allies" policy in a ligence, as one potential vehicle for such covert operations. It speech before the Los Angeles World Affairs Council is of note that this is the firsttime the Congress is authorizing a on Sept. 20, 1989, when he announced that the "end department or agency, other than CIA, to set up proprietaries. of the Cold War" meant that the main threat to the United States was no longer from Russia, but from 'Nuclear proliferation' scare economic competition. The main enemies now, he The intelligence legislation also mandates an in-depth claimed, are Gennany and Japan. Instead of focusing assessment of worldwide "proliferation developments. " The on Moscow, the agency would give priority to econom­ same Senate report identifies "an increasing threat from the ic matters, since "intelligenoe on economic develop­ proliferation of chemical, biological, and nuclear weapons ments has never been more important." He went on: throughout the world. This threat is compounded by the fact "Our political and military aillies are also our economic that many of these same countries are acquiring or developing competitors. The national security implications of a a ballistic missile or other advanced delivery system capabili­ competitor's ability to create: capture, or control mar­ ty. This is certain to increase in the future ." kets of the future are very significant." The proliferation scare is typically used as the cover for Webster labeled "Japanese and European surplus blocking Third World economic development of what are capital" as "creating some potential risks." He also known as "dual-use technologies." The same science in­ asserted that "along with the : globalization of interna­ volved in chemical weapons has broad application in agricul­ tional finance has come the greater use of the financial tural advances, biological science in medical technologies, system by governments and groups whose objectives and nuclear in energy technologies. Ballistic missile research threaten our national security." is the prerequiste for any nation that intends to survive tech­ Again in April of this year, speaking before the nologically into the 21st century. World Affairs Council of Bdston, Webster said, "As The legislation instructs the CIA and the Defense Intelli­ the 21st century approaches, it is clear that economic gence Agency, "to produce an unclassifiedreview of prolifer­ considerations are increasinglytied to national security ation developments , similar in style and fonnatto the annual issues. There is now univer$al recognition that eco­ DIA publication Soviet Military Power, providing infonna­ nomic strength is key to global influence and power." tion on this important issue," by May 1, 1991. The report In September 1989, Webster ordered the establish­ "should include: 1) a global assessment of the currect state ment of a new directorate of planning and coordination, of nuclear, chemical, and biological weapon and delivery the so-called Fifth Directorate, to "reach into all levels , vehicle proliferation and an estimate of proliferation-related of the intelligence business j and "stay ahead" in a devlopments expected to occur within the next 5-10 years; changing world. Career CIA official Gary Foster was 2) specific reports on regional developments (e.g., Latin put in charge. During the Persian Gulf crisis, the Fifth America; Africa; Near East/South Asia; Far East) focusing Directorate has been responsible for assessing the suc­ on the impact of such developments on regional stability; 3) cess of the trade embargo against Iraq, as well as as­ an assessment of compliance with existing treaties and other sisting a task force which has been developing contin­ international agreements dealing with the proliferation of gency plans in case of major disruptions of oil these weapons of mass destruction; 4) a table listing the production . confinned and suspect proliferation-related activities of na-

32 Feature EIR October 12, 1990 to prove that Airbus Industrie has never made a profit on the sale of its planes, which have now grown to 30% of the world us. spites itself market share of commercial aircraft. The previous week, Airbus Managing Director Jean Pierson had announced at i the Famborough air show that the company expects to make n Airbus fight its first profit this year. Financial Times by Marsha Freeman Pierson also stated to the London that he thought the Europeans had compromised as far as they should and that "we would rather have no agreement at all In the escalating war on high-technology trade issues, the than one which is unbalanced. Enough is enough." Other Vnited States is trying to force the European Community members of Airbus complained that the fall of the V. S dollar (EC) to reduce governmentsupport for Airbus Industrie and had also distorted international trade. the European aerospace industry. If the current negotiations The Commerce-sponsored study, performedby Gellman yield no agreement, the V.S. has threatened to file a com­ Research Associates, Inc. states that the "subsidy" to Airbus plaint for unfair trade practices under the General Agreement for R&D from the governments of the European companies on Tariffs and Trade (GATT). Though the negotiations be­ totals about $13.5 billion over 20 years . This number is made tween the EC and the V. S. Department of Commerce are to seem more fantastic through the calculation that if interest confidential, the Washington Post has reported that the Euro­ on this "subsidy" were included, the figure would be more peans have proposed dropping the subsidies for the develop­ than $25 billion. ment of the Airbus from 80% of the cost of the aircraft to 45%, but that the Bush administration wants the subsidy to Europeans call U.S. practices unfair go down to 25%. The Europeans have countered this attack on their taking In this particular case, however, the only thing the V.S. national responsibility for long-term R&D and advanced will "gain" ifit succeeds in beating back European participa­ technology, by outlining that the V. S. has an enormous de­ tion in the international commercial aircraft market is a loss fense budget which pays for much of the research and devel­ of jobs, exports, and production, as 30% of the value of opment later transferred to the "commercial side of the Airbus originatesin the Vnited States. Over 400 V. S. suppli­ house." The first week in September, for example, Henri ers and 90,000 American jobs are involved in producing Martre , chairman of Aerospatiale and president of the French Airbus components and replacement parts. These involve aerospace industry association, stated that it is the V.S. gov­ the largest V.S. aerospace corporations, such as General ernmentsupport for its aerospace industry which distorts free Electric, Bendix, Westinghouse, Sunstrand, Honeywell, and and fair trade . Rohr Industries. The Europeans also leaked an Airbus document which Twenty years ago, when the Vnited States was clearly claims that the V. S. government has provided about $23 leading the world in aeronautics and space technology, evi­ billion in direct and indirect supportto Boeing and McDon­ denced by the landing of men on the Moon, the Europeans nell Douglas over the past ten years, which are Airbus's decided upon a consortium arrangement to advance their own direct competitors . fledgling aerospace industries. By combining research and The case can be made that the tens of billions of dollars development resources-which together could still not then that have been spent for aeronautical research by the civilian equal the V.S. effort-they developed a long-range plan to National Aeronautics and Space Administration (NASA) become producers of commercial aircraft. Airbus Industrie over the past 30 years, have no counterpart in Europe. The was created by the French Aerospatiale Industrie, the West laboratories, scientists, wind tunnels, and computational German giant MBB, and lesser participation from British facilities supported by NASA have made the finest R&D Aerospace, and CASA in Spain. capabilities in the world available to the V.S military and At about the same time, the predecessor to today's Euro­ commercial aircraft manufacturers. pean Space Agency was formed in an international effort to The absurdity of the "unfair trade" charge against Airbus, put Europe into space. Recently, V.S. expendable rocket­ in addition to the fact that American jobs are at stake at a time launcher manufacturers tried to force Arianespace to lower when there are tens of thousands of layoffs in the aerospace its launch price by suing the European manufacturers of the industry, is underlined by the fact that on Sept. 19 it was Ariane for unfair pricing of their rocket launcher services announced that Airbus and General Electric would be lending because they are government-subsidized. The V.S. compa­ $500 million in cash to Northwest Airlines to bail out the nies lost the suit. strapped airline. At the time when the sensitive V.S.-European negotia­ Even the Wall Street Journal admitted that "it could be tions were under way to resolve the trade issue, the Com­ difficult for the V. S. manufacturers to openly criticize Air­ merce Department released a study on Sept. 7 which purports bus's move since the loan is a boon to Northwest."

EIR October 12, 1990 Feature 33 U. N. 'peITIlfive ' dictate the new world order

by Webster G. Tarpley

Proceedings at this year's 45th session of the United Nations Pakistani foreign minister, amo� others, recalls. This world General Assembly in New York have reflected the central can be usefully compared to that of August 1914 and of role of this supernational, one-world institution in dictating 1938-39. This is the ominous �ity which the U.N. seems neo-colonialist punitive measures against Iraq. Speaker after determined to make worse. speaker in the general debate has stressed the newfound unity The far-seeing wisdom of the framers of the Charterhas of action of the five permanent members of the Security been much celebrated at the U.N. in these weeks; it is useful Council (U. S., U.K., U.S.S.R., France, and People's Re­ to recall that the framers were such unabashed imperialists public of China) after more than four decades of Cold War as Stalin, Molotov, Churchill, Eden, and the U.S. State De­ logjam and vetoes. In the view of Baker, Bush, Shevardnad­ partment. Although the fivepennanent members of the Secu­ ze, Mitterrand, Hurd, and others supporting the neo-imperi­ rity Council would like to arrogate to themselves some mys­ alist consensus of the moment, the Security Council will now terious mantle of mastership over human destiny, even the be capable of functioning according to the original 1945 composition of the "permfive" is arbitraryand anachronistic. intentions of the framers of the U.N. Charter, that is to say Why, for example, should a baqkrupt, discredited, and col­ as a syndicate of "five policemen" capable of imposing a lapsed imperialism like Great Britain retain membership, collective will by force on the rest of the world. Speaker after while such larger and more important nations as Germany, speaker has announced a "new world order" based on the Japan, India, Brazil, and others are excluded? The answer rebirth of "multilateralism" and a "renaissance" of the U.N. could not be provided by changing the powers entitled to Some critics have recalled that the last time there was so seats as permanent members. The veryidea of fivepe rmanent much talk of a "new order" was around the Rome-Berlin­ members excluding all others fr(>m real power is repugnant Tokyo Axis of 1940. The atmosphere around the U.N. in and unworkable, and this entire !Supernational system ought recent weeks has been redolent of a new Congress of Vienna. to be junked. The U.N. can be useful as a talk shop and as a But this is an illusion. In retrospect, the Security Council venue for negotiations, but it cannot be allowed to violate decisions and much of the General Assembly debate are like­ the sovereignty of nation states .. ly to read like the minutes of a discussion of urban zoning in Among Arab states, Islamic states, and among the devel­ the city council of Pompeii shortly before the eruption of oping sector and non-aligned countriesin general thereexists Vesuvius. In effect, the "perm five" and their retainers are a greatdeal of suspicion and resentment in the face of such dancing on a volcano. For the world outside of the U.N.'s neo-colonialist land grabs dressed up in hypocriticalphra ses. East River enclave is lacerated by the worst economic depres­ Mitterrand, Shevardnadze, Hur�, and others have felt them­ sion of all time, and presents half a dozen crisis spots that selves obliged to refute these objectionsin their own remarks. are ready to explode into regional war, as the speech of the But at the U.N., criticism from the Third World and the non-

34 International EIR October 12, 1990 aligned has been muted, largely because of the atmosphere The Red Chinese foreign minister, in his speech to the of gangster-style intimidation and coercion being fostered by Security Council, expressed some · verbal objection to an the great powers, and above all by the United States. armed intervention by the powers against Iraq. This is but At the center of the New World Order sits the Security the faintest echo of the old militant Third-Worldism of the Council with its 15 members. But of these, the 10 non­ Beijing regime. As for the French position, it is useful to permanent members are merely hand-raisers, merely filler. compare the speech of French President Fran<;ois Mitterrand Those who really count are the five permanent members, to General de Gaulle's speeches in Phnom Penh in 1966, those who possess veto power. On all substantive matters, when de Gaulle was President of France, or to his remarks Security Council action requires an affirmative vote of nine in the wake of the 1967 Arab-Israeli war. Such a comparison members, including the affirmative vote of each of the five makes clear that Mitterrand has abandoned the pro-Arab for­ permanent members. This means that the "perm five," plus eign policy of de Gaulle, conserving merely a certain veneer any four of their rotating stooges, are in a position to dictate of rhetoric to differentiate himself. In practice, there is not Security Council resolutions, which the U . N . considers inter­ much difference among Mitterrand, Hurd, Baker, and Bush. national law and binding on all countries. The operative French policy appears as that of Suez in 1956, The functioning of the "perm five" is a mixture of Star when France joined England and Israel in attacking Nasser's Chamber and floatingcrap game in midtown Manhattan. On Egypt when the latter had assumed control of the Suez canal the one hand, "perm five" deliberations are kept rigorously with a view to using the canal tolls to help build the Aswan secret, carried out behind closed doors , with all reporters dam. The main difference is that this time the French insist and the public barred. These are not open covenants openly on an independent command. De Gaulle scorned theUnited arrived at; this is secret haggling in the tradition of Yalta Nations as "Ie machin" ("that thing"); Mitterrand appears and Potsdam, of which the Security Council is in fact an eager to take his place at the table of the "perm five." extension. The "perm five" often meet, not in the U.N. com­ Basic features ofthe New World Order that emerge from plex at Kips Bay by the East River (an extraterritorial plot the U.N. include the following: contributed by the Rockefeller family), but in the mission of • Genocide, especially against non-white and neo-colo­ one or the other of the powers. nial populations. This is the immediate content of Security Council resolutions 660-670, mandating naval and air block­ A sinister military dimension ade and embargo of Iraq and Kuwait, including Jordan and Adding a new and sinister dimension to the Security affecting millions of Asian migrant workers in these coun­ Council is the revival of its Military Staff Committee. This tries. This is not the first time that the U.N. has served as a organism, it is worthrecall ing, was theoretically established vehicle for genocide, and we should recall that the Interna­ under Chapter VII, Article47 of the Charter, where we read: tional Monetary Fund and World Bank are both parts of the "There shall be established a Military Staff Committee to U.N.-centered supernational bureaucracy. Seen in this light, advise and assist the Security Council on all questions relat­ the hypocritical posturing and cynical demagogy sur­ ing to the Security Council's military requirements for the rounding the much-touted U.N. "Children's Summit" can be maintenance of internationalpeace and security, the employ­ properly appreciated. ment and command of forces placed at its disposal, the regu­ • Malthusianism and zero-growth environmentalism. lation of armaments, and possible disarmament. The Military These are part of the litany of almost every speaker, with Staff Committee · shall consist of the Chiefs of Staff of the Britain's Foreign Secretary Hurd inveighing against the Permanent Members of the Security Council or their repre­ ozone layer and global warming, Jan Syse of Norway talking sentatives. " of the "green agenda" in the U.N. Economic Commission Soviet Foreign Minister Eduard Shevardnadze has been for Europe's Bergen Declaration of May 1990, and Hans most vocal in proposing that this institution be reactivated van den Broek of the Netherlands calling for "green peace." and made into the military command structure for the armed Many look forward to the United Nations Conference on intervention into the Gulf; the Soviets have indicated that Environment and Development, set for 1992. they regard this as part ofthe possible price for playing a role • Usury and global impoverishment. As far as the "perm in a military attack on Iraq . The Anglo-Americans appear five" are concerned, the New World Economic Order, debt hesitant to accept the Soviet plan regarding the Military Staff moratoria, and North-South technology transfer are all a dead Committee, since this would make the Kremlin a partner in letter. The U . S. State Department regards any mention of the the Anglo-American seizure of the oil resources of the Gulf. New World Economic Order as a hostile act against the Unit­ Shevardnadze (with the support of Norway and others) ar­ ed States, to be punished by retaliatory measures. Mitterrand gued in his speech that the Military StaffCommittee ought talks at some length about the debt issue and the plight of the to possess a permanent rapid deployment force, always on poorest, yet what he proposes to do for the least developed alertto conduct raids into various partsof the world, especial­ countries is not much differentfrom Hurd, and does not differ ly thedeveloping sector. qualitatively from the "Toronto Terms" of 1988, which Hurd

EIR . October 12, 1990 International 35 claims stemmed from a British initiative in the first place. ter, the principles of internation� law, the universally recog­ The view from the U.N. is that history, ideology, and nized norms of morality, and the standards of civilized be­ politics have ended in a neo-Hegelian melange of Francis havior. Iraq has committed � unprovoked aggression, Fukiyama and Daniel Bell. In the words of Canada's Joe annexed a neighboring sovereign state, seized thousands of Clark: "In the years between the two world wars and in the hostages, and resortedto unprecedentedblackma il, threaten­ depths of the Cold War, there were debates about whether a ing to use weapons of mass destruction.. ..An act ofterror­ state's interests were best pursued through unilateral action ism has been perpetrated against the emerging new world or through cooperation and compromise. That debate is now order. This is a major affront to: mankind. Unless we find a over. It is over because the world has changed. The choice way to respond to it and cope with the situation, our civiliza­ today is not between realism or idealism, unilateralism or tion will be thrown back by half a century. . . . cooperation; it is between success and failure. Cooperation Today is no time for rejoicing, but one cannot help being is now the new realism and pragmatism is the only path to satisfied at the unprecedented unity of the Security Council progress." Even Krzysztof Skubiszewski of Poland, whose and the clear attitude of the international public opinion in country is part of the "multinational effort" in the Gulf, ap­ the face of Iraq's behavior. This gives us confidence in the provingly joins assembly President Guido de Franco of Malta ability of the United Nations to deal with this grave interna­ in quoting the London Times to the effect that "previously, tional crisis. The positions taken'by members of this Organi­ political ideologies wrecked the functioning of the Organiza­ zation give the Security Council the mandate to go as far as tion," and goes on to say that "we are now, I hope, entering the interests of world peace will require .. .. an era in which ideologies will be less and less vocal in International relations are being freed from the vestiges international politics and the role of the ideological factor of the cold war which for many years had a negative effect in relations among states will be greatly reduced and will on the international legal order. We are again becoming the disappear. We welcome this development." united nations and are returning to our own global constitu­ Implicit in all this is the vision ofa Pax Angloamericana, tion-the Charter of the United Nations, to those of its pro­ of a world empire imposed by the Anglo-Saxon superpower visions that were forgotten for a while, but have been proven that enshrines the false idols of "democracy," "pragmatism," to be indispensable for the most importantof our tasks-the and "the free market" in its imperial pantheon. This is what maintenance of international peace and security. . . . the age of St. Augustine knew as senectus mundi, the moral In the context of recent eveqts, we should remind those senility and bankruptcy of the principal institutions of the who regard aggression as an acceptable form of behavior world. It is ironic that there should be so much talk of new that the United Nations has the power to "suppress acts of order when the world is in chaos, so much reliance on a Pax aggression." There is ample evidence that this right can be Angloamericana when we are on the eve of war. exercised. It will be, if the illegal occupation of Kuwait continues. There is enough unity in this regard in the Security Council, and there is also the iwill and a high degree of consensus in the world community. . . . Of course, before-andI reiterate-befo re this, all polit­ Documentation ical, peacefu l, non-militaryfo rms of pressure must be ap­ plied to the aggressor, obviously in combination with eco­ nomic and other enforcement measures. In a way, the Gulf crisis is not just a tragedy and an extremely dangerousthreat to peace; it is also a serious chal­ The fo llowing are excerpts from speeches delivered in New lenge for all of us to review the ways and means of main­ York City to the 45th U.N. General Assembly and the U.N. taining security, the methods of protecting law and order on SecurityCouncil . All emphasis has been added. our planet, the mechanisms fo r controlling the processes which affe ct the state of human civilization in the broadest meaning of this term, and the role of the United Nations in this. Shevardnadze's 'emerging new world order' As any other democratically operating organization, the From the speech of Eduard A. Shevardnadze, Minister United Nations can function effectively if it has a mandate of Foreign Affairs of the U.S.S.R., to the U.N. General from its members , if states agree on a voluntary and tempo­ Assembly, Sept. 25, 1990: rary basis to delegate to it a portion of their sovereign rights and to entrust it with performing certain tasks in the interests . . . But now our field of vision has been obscured by of the majority. . . . the dark cloud of aggression against Kuwait. On that Black The world is consolidating on the basis of universal hu­ Thursday, Iraq flagrantly violated the United Nations Char- man values. Partnership is replacing rivalry. It is becoming

36 International EIR October 12, 1990 the basis for relations between many countries that used to its decisions and, if necessary, to suppress aggression, and regard each otheras adversaries. have a mechanism for preparing and coordinating such ac­ Partnership is not just a fashionable term. It came in tions. evidence during the latest crisis and underlay the close and The Soviet delegation believes that the Security Council constructive interaction among the permanent members of must take the necessary organizational steps to be able to act the Security Council. But the decline of East-West rivalry as in strict conformitywith the provisions of the Charter. a real or perceived factorin international relations may bring It should begin by initiating steps to reactivate the work to the arena of world politics new figures and new phenome­ of the Military Staff Committee and study the practical as­ na. One such phenomenon we will probably have to deal pects of assigning national militarycontingents to serve un­ withis claims to regional hegemony. der the authority of the Council. Among the issues assuming a critical importance fo r The Soviet Union is prepared to conclude an appropriate the future of mankind are the non-proliferation of nuclear, agreement with the Security Council. We are sure that the chemical, bacteriological, and missile technologies, and, other permanent members of the Council and states that more generally, the disproportionate growth of the military might be approached by it will do the same. sector in some economies and societies. . . . If the Military Staff Committee worked properly, if ap­ We need to definethe criteria of defense sufficiency. The propriate agreements had been concluded between the Coun­ Iraqi aggression would seem to make it difficult even to cil and its permanent members, and if other organizational discuss this. After all, what can be sufficient in the face of aspects of countering threats to peace had been worked out, the irrational? On the other hand, the aggression has once there would be no need now for individual states to act unilat­ again underscored the validity of the argument that no nation erally .... should have the exclusive prerogative or absolute freedom to There is no reason to object to steps taken by legitimate determine its own level of armament. Any other approach international "law-enforcement bodies"-the Security would result in an unbridled arms race and all-out militariza­ Council and its Military Staff Committee. tion. We must look toward different principles, toward an We should not underestimate even the psychological ef­ accommodation of reciprocal concerns and a balance of ar­ fect of the Security Council acquiring structures and forces mamentsat the lowest possible levels. . . . to counter aggression .. .. In the longer term, the world community will need to The latest crisis has dramatically illustrated the impor­ monitor the military power of states, arms supplies, and tance of preventing the spread ofweapons of mass destruc­ transfers of military technology. Such an approach will be in tion .. .. everyone's interests and will strengthen stability and trust. The world community should also consider the possibility 'Otherwise, we will continue to be confronted with armed of various " unconventional situations" arisingfromthe mass conflicts and attempts to intimidate and blackmail. Above taking of hostages and cases of blackmail involving particu­ all, it will be necessary to keep a close watch on those coun­ larly dangerous and destructive weapons. These problems tries that make determined efforts to build up the offensive will have to be addressed at two levels-technical and legal. capabilities of their armed forces. Moreover, to have them We could start out by setting up a group of experts fo r contin­ explain why this is being done. gency planning under the Security Council. We might consider the idea of introducing on a global Recommendations regarding the management of "uncon­ and regional level the international registration of certain ventional situations" should be made known to a limited typ es of armaments that are produced or acquired. There is number of people. The Security Council may find it neces­ a need for transparency in this area. . . . sary, upon recommendation of the Military Staff Committee, Two years ago, the Soviet delegation raised the issue of to establish a rapid response force to be formed on a contract reactivating the work of the Security Council's MilitarySta ff basis from units specially designated by different countries, Committee. Recent developments have convinced us of the including the fivepermanent members of the SecurityCoun­ need to return to the original idea conceived by the founders cil. This idea also deserves discussion. of this Organization and of its Charter. We know why the But technical methods alone are not enough to deal with Military Staff Committee has never become a functioning such things. In our view, there is an urgent need to institute body . During the cold war, the Committee could not and did a new norm in international law which would declare the not have a role to play. Now, however, we see that without threat by any individual for purposes of blackmail of using substantive recommendations from this body, the Security weapons of mass destruction, hostage-taking or mass terror Council is unable to carry out its functions under the Charter. to be a crime against humanity. . . . The architects of our Organization proceeded from the The principle of suppressing aggression and threats to harsh realities of the Second World War, and were right in peace should, in our view, be complemented with the princi­ assuming that for the Organization to be effective in keeping ple of individual responsibility and commensurate pun­ peace and preventingwar, it must have the means to enforce ishment.

EIR October 12, 1990 International 37 This is a difficult question from the legal standpoint. An Eduard Shevardnadze spoke fur all of us when he said advisory opinion of the International Court of Justice should earlier today: "This is a major affront to mankind. In the be sought on this subject. Incidentally, we would be in favor context of recent events, we should remind those who regard of enhancing the role of that body and would welcome a more aggression as an acceptable form Ofbehavior that the United up-to-date interpretation of its competence. Nations has the powerto suppressiacts of aggression. There The Gulf crisis is causing a major dislocation in the entire is ample evidence that this right canbe exercised. It will be, system of world economy. Its true magnitude is even difficult if the illegal occupation of Kuwait tontinues. " to assess now. It is clear that the consequences will be severe for the economies of the developing countries, particularly Van den Broek: for a 'green peace' the poorest of them, those burdened by large foreign debt. From the address to the U.N. Gener,alAssembl y by Hans Merely stating this is not enough. Action must be taken with­ van den Broek. Minister of Forei[Jn Affa irs of tlie Kingdom out delay. It is necessary to establish as soon as possible an of the Netherlands. on Sept. 26: international machinery. maybe a temporaryone fo r the time being. fo r example under the auspices of the International ...The improved climate between East and West will Monetary Fund or the World Bank. to mitigate the negative also positively influence multilateral cooperation, as is consequences of this crisisfo r countries which are in a partic­ proven by the United Nations' handling of the present crisis ularly vulnerable position .. .. in the Gulf.. ..The very core of the U.N. Charter is at The Soviet Union, as a major oil-producing and energy­ stake: the maintenance of peace and the prevention of aggres­ exporting country , will be prepared to cooperate in imple­ sion ....The sad story of the League of Nations has taught menting measures under the auspices of the United Nations the world that we must stand firm ;and united in the face of or of any other international body, aimed at stabilizing the aggression. economic situation in the world. This should not be a matter Just as in Europe, we would prefer to see regional solu­ of individual steps of a mostly charitable nature to assist tions to the regional problems in tne Middle East. In princi­ individual countries. What is needed is a global policy of ple, we therefore understand the call for an Arab solution to stabilization and compensation. this conflict. We are dealing here, however, with the aggres­ History, particularly modem history, teaches all kinds of sion of an Arab state against another Arab state. And it is at lessons. They should not be ignored or underestimated. One the request of Arab states, which feel threatened by Iraq, that of them is that security can hardly be lasting unless it is countries from outside the region 'have come to their aid. supported by economic growth combined with spiritual Moreover, international aggression and violent conquest health and traditional cultural values combined with new transcend the confines of the region, because they strike at technologies and a concernfor the environment. . . . the heart of the U.N. Charter. FinaUy, legitimate interest in Much has been said lately on environmental issues. We the stability of this part of the world is certainly not limited even run the risk of "talking away" our future , for until to the region itself. It should therefore be clear that an Arab now very little has been done at the global level, while the solution cannot be a substitute for Security Council resolu­ destruction of the environment is outstripping our prepara­ tions, but could only take shape subjectto Iraq's full compli­ tions to deal with the threat. . . . ance with them. . . . In our view, one of the priority measures would be to Just as it is difficultto imagine safeguarding international establish a United Nations Center for Emergency Environ­ peace without at the same time striving to promote soCial mental Assistance. peace, it is equally difficultto imagine that either can survive As we see it, the way to go is to reducemilitary expendi­ in the long run without an ecoloaical balance--in short, tures and to promote conversion in the defense production green peace. Life on Earth for futu¢ generations could very sector. There is no alternative. The figures are well known: well be endangered if man does not make peace with nature. $800billion must be spent before the end of this century to And if not peace , then at least a ceasefire. avert environmental degradation. That sum is almost equal The threats are real enough: waI1llling of the ozone layer, to what the world spends on the military each year. acid rain, expanding deserts, and reckless deforestation-to pick just a few from a growing list. It is indeed most urgent Baker: U.N. can and will use force that we act, if only to stop further deterioration. We simply From remarks by U.S. Secretaryof State James Baker at cannot afford the lUXUry of waiting' for irrefutable scientific the U.N. SecurityCouncil. Sept. 25. 1990: proof as to what precisely causes the differentproblems con­ fronting us. We should not give ourselves the benefit of the . . . Rarely has the United Nations been confronted by doubt. It is crucial now to move toward the early conclusion so blatant an act of aggression as the Iraqi invasion of Kuwait. of a world climate convention which should put an effective Rarely has the international community been so united and stop to such related phenomena as the warming of the atmo­ determined that aggression should not succeed. . . . sphere, the depletion of the ozone layer, and deforestation.

38 International ElK October 12, 1990 from the Soviet border, this would create an u nacceptable "arc" of U.S. military allies in the region extending from Turkey, down through Iraq, into Saudi Arabia. Moreover, he added, should the "250,000 U.S. troops that Washington wants to station in Saudi Arabia remain," Sovietgeneral then NATO would be strengthened through troops not in­ cluded in any Conventional Forces in Europe agreements. Perhaps for such reasons, Soviet President Gorbachov, warns of world war at the Sept. 9 press conference following his summit with George Bush in Helsinki, stated that any U.S. military action by Joseph Brewda in the Gulf is "unacceptable." General Moiseyev's views on the danger of warare also On Sept. 26, Gen. Mikhail Moiseyev, the Chief of the Soviet shared by others of different political persuasions-for ex­ General Staff, warned in an interview with the Washington ample, King Hu ssein of Jordan . In an unusual letter to the Post that the U.S. government's planned military action in editor of the Washington Post, published on Sept. 24, King the Persian Gulf could trigger a new world war. A military Hussein stated "I fear the current course of events could be conflict in the Gulf between the U.S. and Iraq could escalate a replay of 1914 ...when the world stumbled into a warit out of control, the general said. "The First World War in did not want but could not stop ." 1914 also started because of some minor thing. Today we should do our utmost to prevent it." Back in Washington "In case of some military actions," he elaborated, "Iran Unfortunately, it appears that the Soviet military's warn­ will join the Iraqi side. This would not be simply some kind ings or threats have not had a sobering effect on the Bush of conflict; this would be world war ....Such a war will administration. not bringany glory either to the American people or to the On Sept . 29, in a Washington Post commentary entitled people of Iraq. " "The Dangers of Stalemate," former Secretary of State Henry Concerning the factor of incalculability, Moiseyev said, Kissinger recommended an October-November deadline for "It's very hard to imagine [the consequences of war] , espe­ planned military action against Iraq . Kissinger has been cially considering the sophisticated weaponssystems that are closely associated with Bush since the Nixon administration. concentrated on both sides." He added, "I know how high a He dominates the Bush administration through such former price the American people paid in Vietnam ....We cannot partners and tools as National Security Council chief Brent allow bloodshed to happen." Scow croft, and Deputy Secretary of State Lawrence Ea­ Moiseyev called upon the United States to join with the gleburger. Soviet Union in findinga political solution to the crisis. "We "The administration must . . . decide at some point how have quite enough political means" to find a solution, he long it is prepared to wait for sanctions to work and how far added. it is prepared to go without unanimous internationalsupport ," One day after the interview, General Moiseyev traveled Kissinger wrote . "I do not know whether the decision must to the U.S. on an official visit, and continued making the be made in October or November. I would be very uneasy same warnings. "We can't view the resolution of any crisis were it to be delayed into the new year, for I believe that the like this by means of using arms ," he told the editors of the entire enterprise might then begin to unravel." New York Times in an unusual joint interview with U.S. Arguing against political solutions "saving Iraq's face is Chief of Staff Gen. Colin Powell on Oct. 2. For his part, the exact opposite of what is needed," Kissinger added, Powell responded by asserting "We are not eliminating any "Were Saddam Hussein suddenly to accept the U.N. terms, options that are available to our President. " Powell's remarks he would in fact preserve the essense of his power." Without were widely interpreted to mean that the United States is war, Kissinger believes, "Iraq would still retain its chemical moving closer and closer to a military strike on Iraq . and nuclear capabilities. Its large standing army would still preserve the capacity to overwhelm the area." U.S. military action 'unacceptable' Kissinger claimed that "The moderate Arab states would This is not the firstwarning of this kind coming from the welcome a decisive American move if it were demonstrably Red Army leadership. On Aug. 30, Gen. Vladimir Lobov, the only alternative to Saddam's succeeding." Actually riots the Warsaw Pact chief of staff, warned in a TASS interview would topple most the regimes of most Arab "moderates," that the stationing of U.S. troops in Saudi Arabia could such as Egyptian President Hosni Mubarak, withindays and threaten the "strategic balance in the region," by threatening weeks of U.S. military action. "As for Gorbachov," Kissing­ the "southern flank of the Soviet Union." He warned that er insisted, "the economic weakness of the Soviet Union should the U.S. "occupy Iraq," which is only 200 kilometers requires a concentration on domestic affairs ."

EIR October 12, 1990 International 39 Third Wo rld leaders andpr ess in backlash against Gulfadv enture

A growing number of political leaders and publications in Many in the Brazilian military are known to agree with Third World countries are beginning to warn that what's lornal do Commercio's evaluation that the Gulf campaign really at issue in the Persian Gulf, is the Anglo-American was intended to set a precededt for U.N. police action drive to stop Third World development. They are asking globally. whether their countries might be the next targets, if war in the Mideast is not headed off. Argentina President Carlos Menem, who ordered Argentine troops Venezuela to join the Anglo-American force inthe Persian Gulf, discov­ Bush's policy was criticized from an unexpected quarter: ered on a trip to Venezuela at the end of September thathe Alberto Vollmer, head of one of Venezuela's country's old­ is no longer welcome there. VenelZuelan papers derided him est and most powerful financial group s, and a friend of the in cartoons and commentaries, and the government had to Rockefeller family. "What guarantee is there that Venezuela, order employees to fill out a congtessional delegation meet­ with its immense oil reserves, will not also be swallowed up ing, because so many congressmaJllrefused to meet with him. one day by the U.S.A. or by England?" Vollmer asked in a Menem "committed treason td Latin America . . . to the Sept. 15 article in Diario de Caracas, entitled "Wall Street's Third World" and "to Argentine national dignity, when he Gurkhas." Gurkhas are the Nepalese fighters who have voluntarily, consciously, and abjeCtly prostrated the majesty served as mercenaries for the British Empire for more than a of the presidency at the feet of Mrs'. Thatcher and Mr. Bush," century, "especially expert in slitting the throat of their vic­ the Venezuelan paper EI Meridiarloeditorialized. tims at night and by surprise," he explained. The Argentine publication Uiformador Publico in its "Who are Wall Street's gurkhas? After [Iraq's invasion Sept. 28 issue published an interview with Alberto Samid, of Kuwait on] Aug. 2 ...they appear to be the Americans, who was fired by Menem the welek before for arranging a the British, some other Europeans, and a few Arabs, com­ shipment of food and medicine to Iraq via Iran. As a descen­ manded by President Bush and Mrs . Thatcher." A d�clara­ dant of Arabs, he said, "our Arab people are on the brink of tion of war is understandable when a nation's territory is suffering a war that will bring fatal consequences. . . For attacked, but not when one's wallet is, he wrote . "It is time these reasons, I couldn't agree with the posture of our govern­ that the U.S.A. and England stop being the policemen for ment." He said he sent the shipment to Iraq "for a simple the underdeveloped world." humanitarian reason. I know the sUffering of the Iraqi people, there are pregnant women there, old people and hungry ba­ Brazil bies. They have gone to the extreme measure of taking over The Amazon could be the next target of invasion, after a zoo and eating the animals." Iraq. So warnedthe editor of Brazil's lornaldo Commercio, On the question of the attack$ on Saddam Hussein, he Austregesilo de Athayde, in his column Sept. 28. "The attack said, "Any analysis must begin with the following principle: on Iraq, the ravings against Saddam Hussein, could consti­ Oil is an Arab patrimony. The British and Americans want tute a precedent for future assaults in other zones," he to control this Arab patrimony. Saddam Hussein and the warned. "Our Amazon" is a likely target for such action. If Arab people have the same enemy the Argentines had in the it is ever proved that, in that immense forest, we are threaten­ Malvinas War: the British and the Americans. Moreover, the ing the oxygen which, the ecologists say, feeds humanity's Iraqis were the only ones to back us when the British sank lungs ....Then ...the right to the legitimate defense of the General Belgrano. The Iraqii people were at our side the preservation of the species is imposed, as a higher law, when the Brits killed our boys on the islands." on Brazil and her neighbors, with the same authority with Further, he said, "I don't understand such preoccupation which the U.N. and other powers impose themselves by force and such prolixity now at the U.N., since we looked the upon Iraq, and promise Saddam Hussein the same treatment other way when the Americans invaded Panama, or when the with which Hitler's partners paid at Nuremberg for the Sec­ Soviets invaded Afghanistan. NoW! it appears that the U.N. is ond World War's crimes of genocide." an admirable organization ....w' e fool ourselves, because

40 International EIR October 12, 1990 when it suits the great powers, they back the U.N. They have from the CIA to the Saudis and Kuwait, knew that war would always done this, as long as it serves their own interests." break out, and where it would break out. They knew that Saddam Hussein had presented his situation in a realistic way Turkey and asked for a solution. Saudi Arabia and the United States lured Iraq into the "Because these countries not only wanted to push Iraq Gulf trap, declared Bulent Ecevit, the former Socialist Party and the Iraqi leadership into a comer, but to annihilate them," prime minister, following a trip to Baghdad at the end of concluded Ecevit, "they lured him into the trap of the inva­ September, where he met with Saddam Hussein. Presenting sion of Kuwait. the resultsof his meetings in the Turkish daily Milliyet, Ecev­ "As much as it was thoughtlessness and roulette-playing it expresseddoubts that the international embargowill force on the part of Iraq to step into this trap, so it was thought­ Iraq out of Kuwait. The invasion of Kuwait has a pre-history lessness and roulette-playing as well to drive Iraq into this of provocations against Iraq, Ecevit explained, elaborating trap . And it is yet unclear today whether it is Iraq that stepped the following points: into the trap , or the United States and its 100,000 American • Iraq was already close to economic ruin long before soldiers in the Arab desert." the Kuwait invasion, because of its long war with Iran, be­ cause of the losses in oil revenues caused by the war which Jordan increased the Iraqifore ign debt to an estimated $70 billion; "Maggie and company will fail," was the title of a Sept. • Irag was close to ruin because of the $102 billion it had 27 commentary in the Jordanian Times, on the lessons that to borrowabroad to buy weapons, because of the violation of Jordanians could draw from watching TV today: "Although the OPEC quotas by the other Arab countries which drove Maggie and company are trying their very best to revive their down the oil price and thereby lost Iraq $79 billion in oil empire in the Arabian Gulf and region at large, they will revenues; simply fail . . . even if they succeed in shedding a lot of • During the Iran-Iraq War, Kuwait moved the border blood. The will of the Arab people for independence from withIraq 70 kilometers northward, in order to gain access to British, American, or French hegemony over Arab oil or the profitable Rumaila oil fields and steal oil revenues of an territory or decision-making is irreversible. Even if the hero, estimate $2.4 billion from the Iraqis. in this case Saddam Hussein, is killed, the hero has created Mter the end of the war with Iran, Ecevit continued, many other heroes who will not kneel to the West, even if it Iraq approached its creditors in the Arab world on ways to means the starvation of our own children." renegotiate the debt, on the grounds that Iraq had carried out Another Jordanian newspaper, AI-Ray, denounced Saudi the waron behalf of the entire Arab world in order to contain Ambassador to the United States Prince Bandar, for his ridi­ the Khomeini revolution. The war debt should, therefore, be cule of Jordanian King Hussein's warning that aU. S. assault considered a liability of the Arab world as a whole, not just on Iraq could trigger World War III. The article, in the pa­ of Iraq, Saddam Hussein had argued. Ecevit also pointed out per's Sept. 27 issue, described Bandar as "an employee of that the other Arab OPEC countries compensated for the oil the State Department" who does everything he is asked. that Iraq could not produce during the war with Iran, and "We hope that he, as he wanders in the corridors of the made an estimated net extra profitof $106 billion. U.S. State Department or the CIA, will look for the real Saddam Hussein's initiative, which included a call for reasons behind the assassination of the late King Faisal Bin increasing the oil price to $18 per barrel for a limited period Abd-al-Aziz. If he finds the dossier, then he will read that of time, was turnedwn, do and the oil price was driven down the last meeting between King Faisal and Henry Kissinger further, from $18 to $11, which pushed Iraq into the comer. was meant to deal with the issue of oil, as far as Kissinger At the Arab summit in Baghdad on May 30, Saddam was concerned, and with the issue of Jerusalem, as far as the Hussein wamed: "War is sometimes conducted with soldiers Saudi king was concerned. The reason behind the assassina­ and bombs. But if damage is caused to an economy of this tion was the sentence he said to Kissinger: 'Jerusalem must scope, it can have the same results. This posture is like a war come before oil.' " on Iraq. If we were still strong enough to resist, we could AI-Ray also reported, citing intercepted Saudi diplomatic tolerate it. But we cannot resist the pressure any longer." communiques, that Bandar was key in forcing Riyadh to Meeting the Saudi oil minister, Hisam Naziri, on July 9, capitulate to a previously agreed-upon plan to occupy Saudi Saddam Hussein warned again: "I cannot tolerate that the Arabia. Bandar wrote to the Saudi Foreign Ministry, even Iraqi people are starving and that Iraqi women have no before U.S. Defense Secretary Richard Cheney arrived in clothes." As this warning bore the same lack of result as Saudi Arabia on Aug. 6, that "I have been informed by the the previous one, Saddam Hussein used a well-known Arab U.S. administration that its decision in this regard is final, saying on July 16, when he warned: ''Then shall the heads whether or not Riyadh agrees to ask the United States to send roll, to stop our daily bread from rolling away." its troops. Therefore, I suggest that an invitation be extended By that date at the latest, Ecevit reported, everybody, so that it would not look like an occupation by force."

EIR October 12, 1990 International 41 Gennany reunited as one sovereign nation, faces greater world role

by Rainer Ape!

''This is one of the happiest moments in my life and a day of nations. Several hundred thousand spectators attended. joy for the entire German nation," Chancellor Helmut Kohl • At midnight on Oct. 2, the! liberty bell at Schoneberg said in a nationwide television and radio address a few hours town hall in western Berlin rang out to announce German before the merger of the two Germanys at midnight Oct. 2. unity. The bell is a copy of the famous Liberty Bell in Phila­ , "After more than 40 bitter years of division, Germany, delphia, Pennsylvania. our fatherland, is being united again," Kohl said. He added • In the Schauspielhaus concert hall in eastern Berlin, that "everybody knows that a difficultpath lies ahead of us," an official ceremony a few hours before midnight Oct. 2 but he was confident such difficulties would be mastered in ended the existence of the state of East Germany. Following a a few years thanks to the buoyant economy ofWest Germany. "farewell without tears" address by outgoing Prime Minister "There could not be a better moment for mastering the eco­ Lothar de Maiziere, the longtime Leipzig Gewandhaus Or­ nomic tasks of reunification." chestra (now New York Philharplonic) co-conductor Kurt Outgoing Prime Minister of the former East German Masur conducted Beethoven's Ninth Symphony with the fi­ state, Lothar de Maiziere, spoke after Kohl, saying that uni­ nal "Ode to Joy" choral movement. The statue of Friedrich fication, the end of East Germany as a separate state, was a Schiller, the author of the ode, stands outside the concert "farewell without tears" and one of joy, despite problems hall. that remain. • In the Berlin Philharmonic: concert hall Oct. 3, a gala It was a day of joy, indeed. To the tune of its two national unity fe stivity with prominent gUe!stsfrom Germany and oth­ anthems, the Germans celebrated their reunion as one sover­ er nations featured a performanc¢ of a Bach cantata and the eign nation-state on Oct. 3. The official state anthem, the oratorio Die ScMpfung(The Crell-tion,) by Josef Haydn. "Song of the Germans," was accompanied by the second • The 644 deputies of the nejW, united transitional Ger­ anthem, Ludwig van Beethoven's Ninth Symphony with its man parliament-until national �lections on Dec. 2-held final chorus, the "Ode to Joy," performed in many cities of their firstjoint session at the Reichstag on Oct. 4. Germany that had organized official or semi-official events . Oct. 3 was declared a national "Day of German Unity" holi­ Toward a higher morality . day for all of Germany. The spirit of these three day�, highlighted by the high Berlin, the German capital until the end of the war which level of cultural activities, recall�d that German up.ity is not was physically reunited on Nov. 9, 1989 when parts of the a value in itself, but contains an appeal for a mission beyond Berlin Wall came down, became the center of nationwide mere German concerns. Prime Minister Lothar de Maiziere, unity celebrations. Some highlights of the bigger events in himself a classical musician who plays the viola, addressed Berlin, which were attended by an estimated more than 1 the issue of values in his nationwide television address on million Germans and foreign visitors during the three days Oct. 3 when he said that the collaplleof the communist ideolo­ Oct. 2-4, included: gy in East Germany should not ¢ause disbelief in ideals in • In a ceremony followed by a reception at the Allied the future. Control Center building Oct. 2, the chiefs of the three West­ Concerning ideals, Germany ,can do a lot. As classical ernmilitary missions ceded Allied powers to the newly sover­ music and culture and the sciencCls,to which Germans have eign Germany. The mission chief of Britain-whose govern­ contributed so much over centuri¢s, aims at something posi­ ment has been most outspoken against German unity-Maj . tive for all mankind, so is German unification of a broader Gen. Frank Corbett, happened to preside for the Allies. weight for the world at this crucial moment of history. The • In the evening hours, a huge flag in the three German news from the Persian Gulf, and the deep economic depres­ colors-black, red, and gold-was hoisted at the just-re­ sion in the Anglo-American zone and the Third World, and stored Berlin Reichstag building in a ceremony that was at­ the potential of a civil war in th¢ declining Soviet empire, tended by political figures from both Germanys and other underline the seriousness of the world situation. It is widely

42 International EIR October 12, 1990 expectedthat Gennany is committed to make a sizeable con­ German-Poland relations key tribution-ifnot the decisive one-to help restore a positive It is all too apparent that there cannot be in-depth coopera­ coursefor mankind. Some expect that Gennany, and no other tion between Gennany and the Soviet Union if Poland is not nation, must make the decisive step. serving as a bridge between the two. Poland is the eastern­ most of the old nations of Europe, and its economy must Soviet emphasis upon Germany urgently be stabilized and improved. To westernize the Sovi­ The Soviet Union, lacking concrete assistance from the et Union is a task too big for the Gennans alone. A develop­ United States, its longtime condominium partner, is casting ment "spiral arm" running between Berlin and Warsaw will nearlyall of its hopes on the united Gennany. The Gennans be crucial for the success of the Soviet refonnexperiment. areexpected to help the Soviet Union out of its present inter­ Chancellor Kohl made a firstimportant step in that direc­ nal disarray toward a stabilized economy in the second half tion in November 1989 when he visited Poland; but just at of this decade. This is amply documented in the official that time, the transition communist regime of East Gennany remarksfrom Moscow on Gennanunification . was close to total collapse and it decided to open the borders Soviet President Mikhail Gorbachov stated in his mes­ to West Gennany and West Berlin. Ever since, the pace of sage of congratulations to the Gennan nation, that its reuni­ developments in East Gennany dictated a priority on Gennan fication is for the good of Gennan-Soviet cooperation. This concerns, on Gennan-Soviettalks, and on diplomatic consul­ is of a "new quality" based on "the combination of the poten­ tations with the Western allies by Bonn. The issue of Polish­ tials of both sides," he said. Gennan relations was driven into the background-some Yuri Gremitskykh, the official spokesman of the Soviet say, too far into the background. Foreign Ministry, read a statement Oct. 2 to the media in Had Chancellor Kohl and his diplomatic partners fol­ Moscow that said: "The Soviet Union and the united Genna­ lowed the proposal Lyndon LaRouche made in Berlin in Oct. ny areentering a new stage of cooperation which must bring 12, 1988, the entire development would have started with a durable peace, stability, and enlightenment." Interviewed on development program for Poland, which would then have West Gennan Channel 2 television that day, Gremitskykh been extended to the western parts of the Soviet Union, East declaredthat he welcomes Gennanunification because of the Gennany, and the rest of Eastern Europe. Kohl and his part­ perspectives for close cooperation with the Soviet Union ners chose another course, and stumbled into the turbulences "especially in the fieldof managing an economy efficiently, of spring-summer 1989. using materials efficiently, which is something we still have Chancellor Kohl has, however, never lost sight ofthe fact tolearn , and I think we can learnthat from the Gennans who that next to Gennan-Soviet relations, cooperation between have built a very efficienteconomy . " Gennans and Poles has a crucial importance. A few days A few days before, Aleksandrovich Belousov, director before the fonnalunification of Gennany, Kohl reiterated his of the Moscow Academy of Economic Sciences, had told a finn intention to complete various initiatives toward Poland panel on East-West affairs in Ingolstadt, West Gennany, that which had been frozen, and sign a long-tenn cooperation theeconomies of Gennanyand Japan should serve as a model agreement with Warsaw early next year at the latest, after for the Soviet Union afterthe firstround of refonns. the Dec. 2 elections for all-Gennan parliament. On Sept. 29, a Gennan-Soviet agreement was initialed At a pre-election meeting of his Christian Democratic in Bonn that cited space technology and reconversion of Union (CDU) party near Frankfurt on Sept. 22, Kohl de­ parts of the military industrial sector as preferential areas of clared: "We will not be able to walk into a peaceful future if cooperation. The agreementon 20-year long-tenneconomic the relations between Gennans and Poles do not develop cooperation also mentioned machine-building, development in a way similar to the partnership and friendship achieved and mass production of private cars , trucks, buses, and air­ between the fonnerwartime enemies Gennany and France." craft, shipbuilding, medical, and maritime research projects. The Kohl signal was taken up promptly by senior Polish The treaty on long-tenn cooperation that was initialed in politicians. A criticism of the British attacks on Gennan Moscow betweenthe Soviets and the Gennans on Sept. 13, unificationis sued in Polish earlier by the new Polish Ambas­ already defined that "the most modern technologies" be ap­ sador to Gennany, Janusz Reiter, was published in German. plied to improvements in the transport sector and transport Calling for a clear "emphasis on confidencein the democratic links between the two states. Gennany in spite of the fact that its potency also causes These agreements plus the two lesser agreements--on certain fe ars ," Reiter took the British view head-on: "The the continued stationing of Soviet troops in easternGennany British Trade Secretary [Nicholas] Ridley had to resign from for a transition period of four years and on the joint home­ office not only because he showed a shameful tactlessness, building project for Soviet officers and their families with­ but also committed an unforgivable political mistake. drawn from Gennan territory by the end of 1994 at the lat­ "It is about time now," Reiter continued, "to demonstrate est-will likely be signed in November when Gorbachov more confidence in the Gennans. It cannot be our aim, to meets Chancellor Kohl in Bonn or Berlin. avoid dependencies from Gennany, but our aim must rather

EIR October 12, 1990 International 43 be to enter a world in which everybody depends oneach other prominently to create a stable basis for Gennan-Polish coop­ and all are profiting from that. eration. The Polish Minister of Culture, Isabella Cywinska, "Soon, we shall be neighbors to the European Communi­ who was in Bonn on Sept. 26, �ssed the issue when she ty which is represented along our borders by Gennany. Let told journalists: "Sometimes, thei artists can achieve more in us hopethat this is only a period of transition that is preparing politics than the laws." the day Poles and Gennans become neighbors within the Mrs . Cywinska said that she hopes the rapprochement of European Community." both states will "develop on the road of culture, rather than Lech Walesa, now a Polish presidential candidate, also through the merchants ....One: day, there may develop a presented a positive view of Gennan unification, when he real friendship of the type existing between the Gennansand wrote in a special supplement to the FranlifurterAllgemeine the French." Zeitung Sept. 29: "The unification of Gennany is the most visible evidence of the fact that the partition of our continent The role of France that was decreed at Yalta is over. We welcome with joy This touches the theme of what role France, having long­ what has occurred without violence or bloodshed, because standing historic ties to Poland,' shall play in this context. overcoming all the consequences which the accords of Yalta There is no doubt that cooperation between Gennany and that were repressing the peoples had, has always been the Poland would not work if France objected. Throughout most objective of Solidamosc. of the 300 years between 1648 and 1945 , the Polish issue "Up to this day, Poland was cut off from Europe by has been a source of major frictions, sometimes even war, hundreds of kilometers of the communist fortress of East between France and Gennany. french foreign policy after Gennany, surrounded by death strips and watchtowers. Only 1945 , especially after the signing of the Franco-Gennan a simple river is between us and Europe , now. And it is not Treaty of January 1963, has been improved, but frictions the case that we are expecting aid in the fonn of alms from have remained to this day. our new rich neighbors. We are rather counting on a coopera­ Because of this, it was important that Kohl recalled a tion that is of use for both sides." period in European history that saw close cooperation be­ Cooperation is making progress, though slowly. At the tween France, Gennany, and Poland, when he gave his key­ close of September, future economic Polish-Gennan rela­ note address to the unification congress of the western and tions was addressed in hints coming from Bonn and Warsaw eastern Gennan Christian Democrats in Hamburg Oct. 1. about a share that Polish construction finns would be given Kohl made direct reference to the spirit of the patriots that in the joint Gennan-Soviet home-building project. Polish had gathered at Hambach Castle in May 1832-patriotsfrom construction workers would be employed in the project, part­ France, Gennany, and Poland that were then united in their ly to compensate for lost contracts with Iraq, in an agreement common struggle against the remains of the post- 1815 Met­ reachedin principle between the Gennan and Polish housing ternichian system of repression which was the historic model ministries in talks in Warsaw Sept. 27. Details still have to for the post- 1945 system of Yalta. Kohl's emphasis on the be worked out in view of the fact that construction workers Hambach event implied an appeal to revive the historic 1832 from Czechoslovakia, Yugoslavia, and Turkey are to be inte­ reunion of Gennan, Polish, and French freedom fighters in grated in the initial phase of the DM7. 8 billion project. the last decade of the 20th century. The Gennan government will also try to guarantee em­ Kohl paid special homage to Poland's Solidamosc move­ ployment for construction and other workers from Poland ment as having made reunificationof Gennany possible. now working in Gennany-about 20,000 in the East, 10,000 Kohl also said that "also for the united Gennany, friend­ in the West. In this context, the two Gennan governments ship with France will remain of vital importance." Kohl pre­ issued a decree shortly before their merger on Oct. 3 that sented Franco-Gennan cooperation on European affairs as Polish workers with fixed contracts in eastern Gennany are the model for Eastern and Southeastern Europe. "For the no longer requiredfor the time being to show a visa for entry building of a united Europe that is living in peace, Gennan­ to Gennany. This is a minor move, but important in the Polish relations will have an outstanding weight. Without broader perspective of Polish-Gennanrelation s. Franco-Gennan friendship, the; job of unifying Europe An important, nascent development is the agreement couldn't have been begun; without Gennan-Polish partner­ signed Sept. 26 between the port cities of Duisburg and ship, it will not be possible to complete it," he said. Gdansk. Covering port management methods, loading-un­ The Gennan Chancellor paid tribute again to the Poles in loading technology, direct coordination of transport flows his nationwide television address on Oct. 2, when he extend­ between both ports , and the study of future flows of trade , ed warm,special thanks to the "refonnmovements in Poland the agreement involves "cooperation between the biggest and Czechoslovakia which gave thepeople of East Gennany inland portof the world (Duisburg, Gennany)and the biggest the courage to stand up for their rights." port at the Baltic Sea (Gdansk, Poland}." A lot has to be done to revive the Hambach spirit of 1832, But commerce is not all: Deeper values have to surface but the cornerstones have been laid.

44 International EIR October 12, 1990 Ipterview: Audrone Va iniunaite and Donatas Katkus

Two members of theViln ius Quartet: 'Beethoven's Ninth has united us all'

In mid·May, just as the economic sanctions inflictedby Mos­ Ibykus: First, hearty congratulations for the concert this cow on Lithuania began to take effect, and the West (led by evening. You come from Vilnius, the capital of Lithuania, Washington) all but flaunted its indifference to the fa te of and your President Landsbergis, truly quite unusually for the Baltic states, the Vilnius Quartet played in the Federal a politician, has called on the whole world to support the Republic of Germany. The fo ur-firstviolinist Audrone Vai­ Lithuanian freedom fight with classical music, and most of niunaite andher colleague Petras Kunca, both trained by all with performances of Beethoven's Ninth Symphony. Why David Oistrakh, violist Donatas Katkus, and ' cellist Au­ has he done that, and what was the response? gustinas Vasiliauskas-spontaneously decided to give a ben­ Katkus: Music unites all mankind, because music is univer· efi t concert in Colognefo r the "Medicinefo r Lithuania Initia­ sal and a language which everyone understands. Political tive," which hadbeen launchedby the Lithuanian Culture language, and most of all party politics, is often misunder· Institute in the F.R.G. at the beginning of May . The Schiller stood. If one, however, speaks about and, most importantly, Institute joinedforces with the Culture Institute to organize through music, then one employs a language everyone can these concerts. understand. And in Beethoven's Ninth Symphony, which The Vilnius Quartet, since its sensational debut in the one can characterize truly as the "Freedom Symphony," it is West in 1972, when it won the first prize in the Quartet most particularly appropriate. This music is understandable Competition in Liittich, is one of the most renowned Eastern for everyone: It is an expression of the highest art, but at the European chamber music groups. All fo ur players are pro­ same time for every person, also directly significant. fe ssors at the Conservatory in Vilnius and thus, fo rmer col­ This aspect of being outside parties and politics is very leaguesof Lithuanian President Vy tautas Landsbergis. Since important. Landsbergis is a musical scientist and as such, not 1972 they have given more than 1,500 concerts worldwide, a narrow thinker; he is no mere academic specialist, but and theyhave mastered a repertoire of more than 250 works. rather a man who has thought and written about all aspects With appearances at large international fe stivals in Eastern of culture. What he has written always had a very definite and Western Europe, Ibero-America and Asia, they have culturally political reference. Landsbergis was the chairman earned an excellent reputation. of our composers' union, but also the chairmanof the Union In Cologne the Vilnius Quartet played the Quartet in E­ of Musical Scholars and Critics, besides being a musicolo· flatMajo r, Op . 125 No . 1 by Franz Schubert, the Quartet gist. At his lectures he never dealt with subjects narrowly, No. 1 of the contemporary Lithuanian composer Vy tautas but always in their political context. You must know, artwas Lauru§as, andLudwig van Beethoven's Op . 130 in B Major, for us in Lithuania in the last 50 years the only fieldin which in the original fo rm in which Beethoven first composed it, we have maintained our independence. closing with the Grosse Fuge (rather than the Allegro finale Vainiunaite: Indeed, this is really of greatest importance. he later composed). For without our culture, without classical music, we would In a startling expressionof gratitude, the audience show­ never have been able to endure the complete repression by ered the artists with bouquets in the Lithuanian national Moscow, beginning with Stalin, through Brezhnev, until colors. "Some years ago, it would have created a political now with Gorbachov. It was truly the fieldin which we have scandal to do that, " remarked the violinist Petras Kunca maintained our human freedom in all these years. later. Katkus: The arts , i.e., music and poetry-not prose, for What fo llows is an interview granted to Ibykus maga­ it is too direct, too political-were truly free . Under the zine's Ortrun Cramerand Hartmut Cramer by violinist Au­ restrictions of Stalinism our poets-and we in Lithuaniahad drone Vainiunaite and violist Donatas Katkus. It has been and have very good poets-only symbolically depict truth, reprinted by permission of the editors of Ibykus magazine, hence- and was translatedt om German by Marianna Wertz. Vainiunaite: -write "between the lines."

EIR October 12, 1990 International 45 The Vilnius Quartet in concert: (left to right) violinists Audrone Va iniunaite and Petras Kunca •.cellist Augustinas Vasiliauskas. violist Donatas Katkus.

Katkus: Exactly, through poetry. And because we could for us; for many people came to these performances. For only depict the truth in poetry and music, for this reason art example at the large festivals, where our poets appeared is essential for us. and recited their poetry. That made such an impression that However, I would like to come back to President Lands­ many, many people cried. So they had a very strong common bergis. He is not, as I have read here in German newspapers, experience and had the feeling that we Lithuanians have a a music professor, who has no practical knowledge at his unique language and are a unique people, and are not, as disposal and no idea of politics. Landsbergis has an idea of Brezhnev for instance had always stressed, partof a Russian­ politics and he understands the political situation very well. speaking empire. What we are living through is a new era. Humanists are going Besides culture, there was also another very important into politics; and humanists think a little differently from area in which to strengthen our feeling of independence: pragmatists. Because they have a special quality which I sports. For instance, the best basketball team in the Soviet would like to signify as "space thinking." Union came from Lithuania, and no matter how often the Vainiunaite: Indeed, this means these people make poli­ Moscow leadership stressed that there is no Lithuania, but tics not only for themselves, not for the sake of their careers , only one Russia, only one language, only one culture, for us but in fact for the good of the people. They are inspired by it was clear: All these different activities, in which we have ideas and not possessed by striving for power. They are gone on a somewhat special track, have naturally also prepared to sacrifice and stand unselfishly for the develop­ strengthened our Lithuanian national feeling. ment ofthe whole people. One seeks in vain in these humanist leaders the egoism, which one so frequently finds in ordinary Ibykus: Recently Beethoven's Ninth Symphony was per­ politicians. formed in Vilnius in front of the cathedral before many, many listeners-well over 100,000. How did the people react, Ibykus: This independence which you have maintained in what effect did this performance have? Were you there? Lithuania in the field of art, how has it expressed itself in Katkus: No, unfortunately not, because we were at the time daily life? on a concert tour in Germany. But our families, our relatives, Katkus: In this way, that our composers and our poets have and friends were naturally there. And they have told us about expressed their own individuality in their works . We were it. It was something very special, something that is very allowed to perform these works , and that was very important difficultto describe. In such a situation music unites with-

46 International EIR October 12, 1990 Vainiunaite: -a political demonstration- The people of the West knew almost nothing of the Russian Katkus: Yes, yes, and a higher emotion. The consciousness Empire. But now, because of Moscow's posture against Lith­ of people who experienced it at first hand is raised. People uania and the other Baltic states, they begin to understand it. hear the music with a special feeling, an emotion which is The development in the Baltics is thus somewhat of a.test already"prepar ed." Music like Beethoven's Ninth symboliz­ case: If perestroika is a genuine thing and not only a tactical es something, and something veryimportant: freedom. And retreat, to gather forces and prepare a greataggression against for that reason, music in such a situation produces a strong the whole world, then there exists no reason to withhold from effect, with greater power than in other occasions. This you the Baltic states their independence, freedom, and neutrality. can no doubt recognize bythe fact that not all of the audience If Russia has no aggressive intentions, then our fight for had heard everything, because the plaza was very large and independence is no danger, for we are peaceful neighbors. the acoustics naturally correspondingly bad. But everyone therewas emotionally involved with the music. It was a great Ibykus: To come back once more to President Landsbergis. event, as already said, a great political demonstration. He is a musical scientist and pianist- Vainiunaite: We are living in a very interesting time. The Vainiunaite: Yes, and a leading thinker in Lithuania. One revolution proves it; it developed peacefully and without of the intellectuals, who has always put himself on the side weapons, though Moscow still is always seeking to intimi­ of the people. And the fact that he was selected as President, date us with tanks . But in opposition we put our spirited is an expression of the people's trust in him. We artistshave power. All the people in Lithuania, especially the intellectu­ known him very long and very well. als, are united by the newly won freedom, and most of all Beethoven's Ninth Symphony has brought us together. With Ibykus: The news has it that he has a piano in his office in this music we have united Lithuanians in spirit. That is a the Parliament, which he always plays if he must solve a wonderful power, much stronger than weapons could difficult political problem. produce. Vainiunaite: Indeed, and this has also already become the Katkus: We Lithuanians have an interestinghistory . For we subject of anecdotes about him. The most recent, my daugh­ have a unique language, which traces back from Sanskrit; it ter brought back from school recently: "Landsbergis now has is in fact quite similar to it. If I, who know no Sanskrit, read a nine-hour day." "Why does he work nine hours?" "Eight a text in Sanskrit, then I have a fantastic feeling, as though I hours in the Supreme Soviet and one hour on the piano." werereading something in Lithuanian, but not understanding Katkus: There is another anecdote, which aims in the same it. This tradition-�>De could call it the Indian tradition­ direction. "Landsbergis can play good chess. Yes, very points also elsewhere. We are, for example, very peaceful; good. So good, that he once beat a Russian grand master." we are not nationalistic, though naturally patriotic; i.e., we That is in reality a joke; but it is true, that Landsbergis is an have nothing against other lands, nations or people-alto­ excellent chess player. gether different from the Russians, who now make great difficulties for us and greatly grieve us. We, however, speak Ibykus: Do you believe that you will win your fightin Lith­ and keep very calm in the face of the Russians, we discuss uania? with them, etc. Katkus: Yes, because Gorbachov can indeed do everything to us; he can even shoot at us. But two things he cannot do: Ibykus: How do you perceive the Western governments, He cannot change our thoughts, and he cannot change the and most of all the posture of the Bush administration, who economic order. At least not at once. And it is in any case have not supported Lithuania in this difficult situation? not to be done with united appeals and letters . Katkus: We understand the international situation and also the worldwide problem, which proceeds with our fight for Ibykus: What is happening with Gorbachov's decreed eco­ independence. We understand if the newspapers here [in nomic sanctions against your land? Germany] write that Lithuania is "too impatient, it wants Vainiunaite: They naturally have a terrible effect. Many independence much too quickly." We understand all of this. people in Lithuania are unemployed, food is becoming However, one could express in opposition, that the German scarce, one can only obtain it with ration cards. Yet no one reunification process proceedstoo quickly, and indeed much must go hungry, but the quality of food which we have is quicker than the political process with us. But: "Germany is very poor; for the most part there is only rice. As you know, a great country," it is said, "it must be so. But Lithuania is there is a shortage of all medicines. But despite these diffi­ small; Lithuanians can wait a little. Not now." culties, we do not give up. Freedom and independence are We understand politicians, who calculate and weigh ev­ the most important things. erything. But we want nothing but justice, truth, and free­ Katkus: You know, in the end the truth will also seep dom. We know that our aspirations don't fit in the great through here; in the Soviet Union nothing works, absolutely political calculus. Take the example of the Russian Empire. nothing; also not the economic sanctions.

EIR October 12, 1990 International 47 role of the Syrian government in the massacre, portraying it as merely another outbreak of fightingamong rival Christian groups. And in fact, since the Baker trip to Damascus, a Bakerfe eds Lebanese systematic effort has been made to distance the Assad regime from events in Lebanon, a maneuver taken in response to to Syrianbutchers warningsfrom the French governmentamong others that the nations of Europe would not "condone passively" actions by by Jeffrey Steinberg Washington and Damascus to move militarily against East Beirut. To further the charade of an "independent" Lebanese The Bush administration's newest ally in the Mideast, Syrian government puppet "President" Hrawi, who was anointed at dictator and narco-terrorist sponsor Hafez al-Assad, has the Taif, Saudi Arabia meeting early this year, announced in launched the "final solution" to the Lebanon crisis by begin­ mid-September that he was abrogating the Lebanese Consti­ ning to starve and massacre the Christian population of East tution of 1941 and constituting a "second republic." Beirut. The Syrian escalation came within a week of U.S. It was in the name of this second republic that Hrawi Secretaryof State James Baker Ill's visit to the Syrian capital announced the siege of East Beirut on Sept. 27. Damascus, in which he reportedly forged deep ties with Syria American and Mideast intelligence sources canvassed by and gave Washington's blessing to the elimination of Leba­ EIR all agree that the Bush administration has given Hafez non's legitimate Prime Minister, Gen. Michel Aoun. al-Assad a green light to complete the absorption of Lebanon On Sept. 27, the Syrian-backed puppet regime of Presi­ into "Greater Syria." dent Elias Hrawi announced that a full-scale military siege Reportedly, the Bush administration has obtained per­ of East Beirut's "liberated zone" would commence immedi­ mission from the Assad regime to use Syrian air space to ately. Units of the military force under the direction of Gen. carry out air attacks against Iraq. According to one source, Emil Lahoud, reportedly bolstered by members of the Leba­ the use of the Syrian air corridor was necessitated by the nese Forces of Dr. Samir Geagea, set up blockades of all presence of sophisticated Soviet·manned electronic counter­ roads leading into the 100 square mile area of East Beirut measure (ECM) batteries inside Iraq. The U.S. reportedly surrounding the presidential palace, headquarters of General does not wish to conduct bombing raids through areas se­ Aoun. cured by the Soviet equipment. According to a prominent Arab journalist, the Baker­ The Oct. 1 massacre Assad deal involved a broader understanding of how the On Oct. 1, General Lahoud's troops began firing on a Mideast would be carved up among Syria, Israel, Iran, and peaceful demonstration of 15,000 East Beirut residents­ Saudi Arabia following a full-scale war against Saddam Hus­ most of them Christians-protesting the siege and showing sein. Syria would absorb Lebanon and parts of Iraq, Israel their solidarity with General Aoun' s defense of Lebanon's would permanently annex the West Bank and Gaza, and the independence and sovereignty. Some 25 demonstrators were Golan Heights on the Israeli-Syrian border would become a murdered, and another 85 were wounded before the massacre demilitarized zone. Both Lebanon and the Hashemite regime ended. According to Lebanese sources, the 15,000 demon­ in Jordan would cease to exist under the new Anglo-Ameri­ strators were one of several groups demonstrating in both can-drawn "lines in the sand." East and West Beirut in protest over Syria's de facto annex­ According to Lebanese-American sources close to Gen­ ation of the country. Reportedly, tens of thousands of Sunni eral Aoun, the people of East Beirut have rallied in support Muslims in West Beirut intended to link up with the Chris­ of the general, and plan to take immediate steps to break tians demonstrating across the Green Line in the "liberated the blockade of the liberated zone. Reportedly, the Aoun zone" of the divided city. Had the two groups joined together, loyalists plan to march on the I checkpoint at the Addwar it would have represented a significant step toward rallying Crossroad and overrunthe military barriers. nationwide supportfor the Aoun resistance. Such a direct confrontation will accomplish several According to the sources, dissident members of the Leba­ things. It will place the necessary international spotlight on nese Forces, operating against the orders of Dr. Geagea, the unfolding events in Lebanon. It will force Assad's hand carried out the massacre of the demonstrators . at a point when he is encountering mounting domestic oppo­ The next day, hundreds of thousands of East Beirut citi­ sition for his slavish assistance to the Bush administration. zens held a candlelight vigil at the site of the massacre , a Will Assad put his personal stamp on a massacre in Lebanon bridge crossing the Dead River. A half-million people were by sending Syrian forces directly into the fray? Or will he expected to turn out for the funeral for the martyrs on Oct. step back and attempt to play a balancing game between the 3. The Oct. 1 slaughter was virtually blacked out of the U.S. growing clout of General Aoun and his own puppet in the press. The scant news accounts attempted to downplay the Taif group?

48 International EIR October 12, 1990 Indiangove rnlllent bungling aggravates religious disorder, econolllic tunnoil

by Ramtanu Maitra and Susan Maitra

The unstable minority government of the Janata Dal and its leadership of the Bharatiya Janata Party chief L.K. Advani. National Front coalitionpartners in New Delhi has a monu­ The purpose is to whip up a Hindu fundamentalist frenzy mental crisis on its hands that is largely of its own making. during the journey, which will traverse 750 kilometers over Following thegovernment 's adoption of an affirmativeaction a one-month period. The chariot is due to arrive at Ayodhya program to alleviate the conditions of the backward castes, on Oct. 30, the day temple construction is to begin. virtuallythe entirety of northern India has been up in flames. But if Prime Minister Singh has been less than decisive The Janata Dal governmentalready had a tough challenge on the temple issue, it is perhaps because he has his own before it in guiding the Indian economy through a minefield agenda. On Aug. 7, apparently to stave off a challenge to of ballooning deficits, a foreign exchange shortage, and re­ his leadership and to win over a huge vote bank, the prime source andinfrastructure constraints, not to mention the im­ minister announced implementation of a plan that would re­ pact of the Persian Gulf crisis. Now, analysts fear, hasty serve 27% of the central government jobs for the socially embrace by the governmentof Prime Minister V.P. Singh of backward castes-a majority of the Hindu population (see the affirmative action-or "reservation"-policy has placed EIR , Sept. 14, 1990, p. 48). Although socially backward India on the path for a prolonged period of instability, in castes vary from state to state (for example, one caste is which the dreadful prospect of full-fledged caste war cannot considered backward in Uttar Pradesh but forward in Harya­ be ruled out. na), and the issue is not as clear-cut as it is made out to Though it is now a foregone conclusion that the country be, the prime minister did not discuss the matter with the is headed for a mid-term poll, maybe as soon as next year, electorate before taking such a monumental decision. the more basic question is how to contain the forces of divi­ The result has been catastrophic. Those who oppose the siveness that have been unleashed, and to put the country decision are asking for Singh's resignation, but the issue has back on the right track again. become ripe for exploitation by one and all. Meanwhile, northern India has been plunged into violence. The Army Political and communal powder keg has been called in to patrol areas in the states of Haryana From the outset, the Janata Dal government was con­ and Himachal Pradesh, both of which border the already­ fronted withproblems of secession in the states of Kashmir disturbed Punjab, and not far from the other troubled state andPunjab inthe northwest, and Assam in the northeast. that abuts Pakistan, Kashmir. In the capital of Delhi, where Religious tensions, which centered on the movement to reactions were severe, life has been partially paralyzed, with construct a Hindu temple at Ayodhya where a Muslim very little business transacted. In about six weeks of protest, mosque already exists, were stoking Hindu-Muslim tensions some 100 people have been killed, �ncluding nearly 20 at­ in eastern Uttar Pradesh, the most populous Indian state. In tempted self-immolations. each instance, the constant, internalleadership jockeying and All this and more has apparently not shaken the prime factionalizing within the Janata Dal made a firmand coherent minister's total commitment to the "reservation" route of approach to the problem impossible. The Ayodhya affair is social reform . Singh made it clear in a recent interview with a case in point. the Times of India that as far as he is concerned, the policy While PrimeMinister V.P. Singh has shown little ability has come to stay. Issuing a veiled threatto his detractors who to defuse the tension, one of the minority governmentpart­ are involved in violence and disruption, the prime minister ners, the Bharatiya Janata Party, which promotes Hindu said, "No. We have not lost our large support. Only we have chauvinism, has given a clarion call to all Hindus asking advised our supporters to be restrained so that conflict does them to do everything to get the temple built. A chariot not flare up." . procession from Gujarat to Ayodhya has begun under the There is no telling how long such restraint will hold good.

EIR October 12, 1990 International 49 If it does not, a large part of India will be immersed in a Underutilization of manufacturing capacity can also be bloody caste war. There are indications that such restraints counted on to further fuel inflationary pressures. Already have already broken down, at least in the state of Himachal indications are that India will experience double-digit infla­ Pradesh. tion this year. In many states, the major cause of dissension is the rising price of various basic commodities. Finance Economic situation is grim Minister Madhu Dandavate has already warnedthat gasoline The explosive social dynamics unleashed by the Janata price will be hiked further. The Oil price rise will, in its tum, Dal government are like sparks to the tinder of an overall further fuel inflation, an issue which by itself can bring the economic situation that is perhaps grimmer than ever before. government in Delhi down. The country is staggering under internal and foreign debt to the point that it is not in a position to push ahead with vital Gulf oil, Gulf refugees developmental programs. The much vaunted Five Year Plan, In this difficult economic bind, the Persian Gulf crisis scheduled to begin in 1990, is now set for an indefinite delay. comes as a severe blow. The direct additional cost of im­ Already there is talk of a "plan holiday," necessitated by porting oil alone for India will Come close to $2.4 billion, the growing revenue deficit that has begun to squeeze out according to an estimate made by the Ministry of Finance. investment. The $340 billion plan will face a $17 billion The study assumes an average crude oil price in the next 12- deficit, it is now reckoned. Against an average $3.5 billion month period of about $25 per barrel. In reality, however, annual deficit projected by the Planning Commission, the the oil price has already exceeded the stated estimate and, if main body behind formulation of the Five Year Plans, the a war breaks out in the Persian Gulf, the oil price may go as federal deficitfor 1990-91 now stands at $5.2 billion. high as $65 per barrel. The effect of the squeeze on investment is already visible. But that is not the only consideration for India. The governmentis not going to clear several pending projects The Indian government has had to evacuate some for six months to one year, to cut down on expenditure not 200,000 Indian migrant workers from Kuwait and Iraq. With in the Five Year Plan. Steel and petrochemical plants are the going cost of about $1,000 per person, India will be among the projects put on hold, Deputy Finance Minister spending another $200 million bringing these people home. Anil Shastri told reporters recently. At the same time, pro­ Moreover, some $1 billion in foreign remittances will evapo­ duction targets for coal, power, steel, and railways are to be rate from India's balance of payments with the repatriation decreased in the current fiscal year. of the migrant workers. Already, according to the Economic Times, first-quarter All in all, India will be some $4 billion poorer in the performance in these sectors has been signficantly below coming year as a result of the crisis in the Persian Gulf. These target. What is worse, officials predict that the trend will foreign exchange shortfalls, coupled with an estimated $7.0 continue through at least the next quarter. The key bottleneck billion or so in the balance of trade deficit during the fiscal seems to be coal production. Lack of adequate supply of year, will put India in a hole. The country has already accrued coal has affected both the steel and power sectors , and the a foreign debt of about $60 billion. reduction of coal deliveries has cut into rail freight earnings. In the first quarter alone, the railways lost about 3 million Seeking credit to tide over tons of traffic. It was thus little consolation for India that, after much As analysts in New Delhi point out, the coal, steel, pow­ haggling, the InternationalMonetary Fund agreed to provide er, and rail transport sectors account for some 26% of total assistance of $1 billion under the Compensatory and Contin­ economic activity in the country, and have massive down­ gency Financing Facility (CCFF) to tide India over. It is stream effects on every other industry. Unless their produc­ evident that India will have to seek loans elswhere too, most tion is on target, there is no hope of reaching the 5.5% growth likely from the commercial banks at a higher interestrate to target proposed for the Eighth Plan. make up the ensuring shortfall. In addition, a foreign exchange crunch which saw foreign The growing foreign debt and damaging impact of the exchange reserves dwindle to little more than a month's Gulf crisis on India's economic health will in tum provide worth of imports , has led the government to attempt to cut an opportunity to commercial banks to hike up interest rates back capital goods imports. for any money it parts with. Already, Standard & Poors, in If this policy is pushed through, it will have a telling its latest report on the economic status of borrowing coun­ effect on both the export and domestic front. Downstream tries, has downgraded India to the "BBB" category. Another industries which depend on the production facilitated by im­ leading credit agency in the United States, Moody's Investors ported capital goods will soon be facing underutilization of Service, downgraded India's rating to the A-2 category. Sig­ their capacity. At the same time, a large amount of the manu­ nificantly, in its report Standard & Poors cited India's politi­ factured goods exported by Indian industry depends on im­ cal instability as one of the reasons why the country's credit ported capital goods. rating was downgraded.

50 International EIR October 12, 1990 the caretaker government is contemplating fresh charges of misuse of funds to bribe legislators and of tapping telephones Pakistan's elections of friends and foes alike. If the charges pressed are laughable, the caretaker gov­ u. s. ernment seems determined to proceed with its "accountabili­ under shadow ty drive" against the Bhutto governmentnonethele ss. Indeed it has little choice. Failure to nail the PPP is tantamount to by RamtanuMaitra admitting that the presidential decree which brought the PPP government down was an act of bad faith pure and simple. As Pakistan goes to the polls for the second time within two Already Bhutto has scored a surprising victory in the form years, the fate of the recentlydeposed Prime Minister Benazir of a Peshawar High Court order restoring the Northwest Bhutto, who heads the Pakistan People's Party (PPP), the Frontier Province (NWFP) assembly and government. Al­ country's largest political party, hangs in the balance. though the caretaker government has appealed to the Su­ Whether the Oct. 24 elections will result in chaos or a new preme Court, the PPP is continuing its legal-judicial offen­ government will be determined largely by what happens in sive to reestablish all the provincial assemblies and the the coming days inside Pakistan, as well as by the policy national assembly, and thereby prove Bhutto's claim that Washington chooses to adopt for the immediate future of President Ishaq Khan's Aug. 6 action was based on "mala Pakistan. fide intentions." Presently thereis every indication that the promised elec­ tion of a new parliament, and thereby a new government, Bhutto's opposition united in disarray will indeed occur. Not surprisingly, Bhutto's status, along Meanwhile, the electoral battle against the PPP, which with that of the PPP, has become the key issue. When Presi­ the opposition expected to win hands down following the dent Ghulam Ishaq Khan peremptorily dismissed all four President's denunciation of PPP rule, looks murkier than provincial governmentsand assemblies, the national govern­ ever. Though the opposition vowed to combine against the ment, and national assembly on Aug. 6 and charged the PPP and deal it a death blow, it is still bickering over leader­ rulingPPP with gross incompetence and widespread corrup­ ship and seat adjustments. The feud between Mohammad tion, it seemed that Bhutto, the firstwoman prime minister of Khan Junejo and Mian Nawaz Sharif, two stalwarts of the an Islamic state, had reached the end of her rope . A massive Pakistan Muslim League, the key component of the opposi­ investigation to establish financial wrongdoing by her 19- tion Islamic Jamahoori Ittehad (IJI) alliance, has gone from month-old government was launched by the President's bad to worse. handpicked "caretaker government." It was trumpeted that Equally hollow so far has been the loud and solemn vow charges of misuse of power and funds--even treason­ by Ghulam Mustafa Khar, a political renegade with reputed would be brought against Bhutto. At that point many political connection to the Army, who has changed party affiliations observers believed the PPP would be sidelined and the Com­ as often as he has changed wives, that he would "remove bined Opposition would romp home in the coming general Benazir Bhutto from the political scene." Khar, a formerPPP elections. chief minister of Punjab, broke with Bhutto for the second But things have not exactly worked out according to plan. time in July and jumped onto the caretakers' bandwagon. Initial claims that Benazir Bhutto would be tried for treason But the fact is that neither Junejo nor Sharif has an iota of came to nought when, after weeks of investigating, the care­ trust in Khar, so his effectiveness against the PPP is likely to taker Home Minister had to announce that there was no evi­ remain dubious. dence to substantiate such charges. Almost a dozen investiga­ The upshot of all this is that Bhutto's PPP may do well tions to nail the PPP for financial wrongdoing have also enough in the coming elections to emerge again as the single foundered. largest political grouping, and pose serious problems to both Still, tribunals set up in Lahore and Karachi have suc­ the President and Bhutto's swornopponents . ceeded in dragging Bhutto to court to defend herself and have put a damperon her election campaign. The Lahore tribunal How the U.S. views Bhutto has established what has been advertised as a prima ja cie Behind this cameo scene the shadow of Uncle Sam looms case against Bhutto for using her authority as prime minister large. Many political observers have no disagreement with to sanction propane gas connections to members of her "cote­ Bhutto's conclusion that President Ishaq Khan dismissed the rie" and with allotting 287 acres of prime land in Islamabad PPP government to facilitate the U.S. request for Pakistani to a company. The Karachi tribunal, which has already sum­ troop deployment in Saudi Arabia to counter the mythical moned Bhutto to appear, has accused her of making an unau­ threat of an Iraqi invasion. There are reasons to believe that thorizedappointment of a consultant for the Karachi Electri­ Bhutto might have balked on the issue. But this is not to say cal Undertaking. At the same time rumors are afloat that that Bhutto is considered an "enemy" by Washington, or that

EIR October 12, 1990 International 51 Washington might be upset seeing her as prime minister again. Rather, there are clear indications that Washington may not tolerate further harassment of Bhutto. A recent letter to President Bush by Rep. Stephen J. Solarz (D-N.Y.), chair­ Collorimposes green man of the House Subcommittee on Asian and PacificAffairs and a personal friend of Bhutto, drew the American Presi­ dent's attention to the reports of nuclear weapons develop­ agenda on Brazil ment by Pakistan and urged him to cut off military and eco­ by Silvia Palacios nomic aid to Islamabad. The letter was clearly meant to exert pressure: The money at stake is $500 million, not negligible in light of Pakistan 's depleted foreign exchange reserves, now When Brazilian President Fernando Collor de Mello came to under even greater strain due to increasing oil prices and the the United States in late SepteJl[lber to open the United Na­ return of Pakistani migrant workers from Iraq and Kuwait. tional General Assembly session, he spelled out his decision President Bush subsequently announced that he would to switch Brazil's national priorities. Collor repeatedly made withhold certification of Pakistan's "nuclear weapons-free" it clear that Brazil would abandon any attempt to gain techno­ status, the precondition for new aid, until after the Oct. 24 logical autonomy; instead, it w�)Uld tie its hands and surren­ elections. The Pakistani establishment, and the Army in par­ der to ecologism and to the onerworldist agenda of the great ticular, can ill afford strained relations with the U. S. at this powers, in the illusory hope that they would generously help point and is expected to make any deal necessary, which may Brazil become a developed nation. well include reinstatement of Bhutto as prime minister if she At the opening ceremony in,New York, President Collor wins the elections. announced that Brazil had final�accepted limiting its devel­ It has also been evident that Washington is not particular­ opment of nuclear energy, eVql for peaceful purposes. He ly enamored with the Pakistani opposition. U.S. Ambassador stated, "The moment has come, to go further" than the 1967 Robert B. Oakley provoked an uproar among the anti-Bhutto Tlatalolco Treaty by which mdst countries in the Americas crowd in Pakistan with a remark at an Asia Society seminar have renounced all nuclear weapons. "Today's Brazil dis­ in New York Sept. 11. Oakley, speaking personally, said that cards the idea of any experiment which implies nuclear ex­ if Bhutto' s government is held accountable by the caretaker plosions, even though they be fcprpeaceful ends; and it hopes regime, it would be proper to hold the Junejo government that other countries consider taking the same path." This similarly accountable for its tenure from 1985-88-lest the was from a country which once had the Third World's most proceedings "inevitably be seen as partisan and further divide ambitious peaceful nuclear dev�lopment plans. the country. " Collor went so far as to d�scribe the upcoming United At a press conference on Sept. 17, the caretaker Interior Nations Conference on Environment and Development to Minister Zahid Sarfraz angrily retorted: "Mr. Oakley's be­ be held in Brazil in 1992 as ';perbaps the most important havior is like a viceroy's and not an ambassador's .. ..Why international meeting of the century." should a U.S. team come to observe our conduct?" Within days, Ambassador Oakley interrupted his leave to return to Dumping Friedrich List for John Lennon Islamabad with a personal letter from President Bush to Presi­ To give a living example pf the new character of the dent Ishaq Khan in hand. Brazilian government, Presideqt Collor de Mello had the gall The letter has not been made public. But, while those to go jogging in New York's Central Park wearing a T-shirt upset with Oakley consoled themselves that Bush had apolo­ blaring "GREEN, I want you alive." And, if that weren't gized on his behalf, leaks in the Pakistani media assert the enough, he gave a show of what he treasures as "modernity" letter dealt with an increased Pakistani role in the U. S. Gulf by placing a flower on the plaque honoring the assassinated deployment and with the handling of Benazir Bhutto. What­ drug addict John Lennon of the Beatles. ever may be the actual content of the letter, it is well known The Brazilian government's new international postures that Bhutto does have friends in powerful positions in the naturally provoked unusual enthusiasm in the Anglo-Ameri­ United States who would be unlikely to stand by and allow can Establishment. President George Bush, when meeting the opposition to persecute her and throw the country into with Collor Sept. 30, praised hiJID for his firmdec ision against yet another turmoil. nuclear energy development. U.S. Arms Control and Disar­ Under the circumstances, President Ishaq Khan is under mament Agency assistant di�ctor Gordon Bradley was almost as much pressure as Bhutto herself. If Bhutto and the quoted in the daily 0 Globo Sept. 28 declaring on the eve of PPP do well in the coming elections, which is not an unlikely Collor's U.S. visit, "We hope tPat, in the future, both Brazil prospect as things now stand, President Ishaq Khan might and Argentina will permit the lnternational Atomic Energy decide to accept Bhutto's suggestion and resign before things Agency to inspect their nuclear !installations. " get too embarrassing. The unusual support of 30 U.S. senators for virtually the

52 International EIR October 12, 1990 entirety of Collor's refonn program was even more illustra­ pIe of what the nation faced in 1822, we today also have the tive of Brazil 's compromising itself to the limited sovereignty obligation to be in the vanguard, inspired by the values of system. The document they sent President Collor was drafted our time. With independence, a new relationship was defined by Sen. Timothy Wirth (D-Colo.), who busies himself shut­ between the country and the world." ting down productive industry through mislabeled "Clean Unfortunately, 1822 was not the Brazilian nation's most Air" legislation. fruitful period. It was precisely in that year that the most The document also places great importance on the pres­ atrocious economic liberal regime, imposed by England by ence of two avid malthusians in Collor's cabinet: "Your nom­ means of the Rothschild banking house, subjected the coun­ ination of Dr. Jose Lutzenberger to be National Secretary of try to decades of being a mere colonial producer of raw the Environment and of Dr. Jose Goldemberg to be National materials and delayed its industrialization process for more Secretaryof Science and Technology are very positive signs than 100 years . of your commitment to a new era of Brazilian development. " It adds, "one of the great challenges you undoubtedly must Collor's Achilles Heel: Brazilians face is balancing the necessity to administer natural resources Although this project has international support, it is not and control pollution with urgent economic needs, chronic supported by the forces within Brazil which have shaped its poverty and the foreign debt burden ....We agree that major national institutions. Thus, President Collor has put solutions to these difficulties must be considered jointly. In himself on a confrontation course with the Brazilian military­ particular,links between negotiations for debt reduction and industrial establishment, responsible for Brazil's great eco­ environmental protectionare very promising." nomic development during several stages of the country's It is precisely through this debt-for-nature fonnula that history since the 1930s. the one-worldists hope to get Brazil to relinquish sovereignty On Sept. 18, Collor traveled with an entourage of his over partof the Amazon jungle. military , technology, and environment ministers to the Cach­ Collor, accompanied by Lutzenberger, a fanatic of pagan imbo Mountains in the Amazon. They went to fill up a shaft New Age ideas, met on Sept. 26 with Maurice Strong, the dug by the aviation ministry to store nuclear waste. The general secretary of the 1992 U.N. Conference on Environ­ message was clear: The President was putting the brakes on ment and Development. On discussing "self-sustained devel­ all technological initiatives by the Anned Forces which do opment"-which is nothing but a return to the Stone Age­ not fit into the ecologist vision. Stronginsisted that the upcoming meeting must propose fun­ Even more , according to the daily 0 Globo of Sept. 27, damental changes in the "economic development model." Collor emphasized in meetings with U. S. businessmen and Lutzenberger added, "It is necessary to deal with the econo­ politicians at David Rockefeller's Council of the Americas mies and change the economic thinking and progams of the that his government would slow down the nuclear programs industrialized countries. If everybody wanted to have the developed by the Brazilian Anned Forces. And, at lunch number of automobiles there are in the United States, there with journalists, Collor revealed for the first time that upon would be five billion [autos] and we would all be poisoned, taking office, he had ordered that an alleged military nuclear dead," he lied. project called "Operation SolimOes" be immediately can­ The Establishment's euphoria over Collor follows from celed. decades of pressure and blackmail of all kinds against Brazil In the face of these attacks, as well as the Collor govern­ by thesuperpowers to block its legitimate aspiration to sover­ ment's cancellation of all technological cooperation with eign mastery of advanced technologies. These maneuvers Iraq, Air Force general Hugo Piva, one of the architects of were particularly active during Jimmy Carter's Trilateral the Brazilian aerospace program and a protagonist of cooper­ Commission-controlled administration. ation with Iraq , told journalistson Sept. 25 that he disagreed with President Collor' s policy oflimiting technological coop­ Neo-liberalism and environmentalism eration with other Third World nations. "This is a mistake," The neo-liberal ecologist conception, which is funda­ said the retired officer. "Such a measure would mean aregres­ mentally opposed to sovereign industrial and technological sion for Brazil. We would returnto being stuck in dependen­ development, was defined by President Collor in his Sept. cy on exporting iron, beans, and coffee, when we could eam 10 reviewof his firstsix months of government. He instructed much more by transferring technology and intelligence." his cabinet that all their actions be guided by ecology and Due to its many and ever more frequent differences with "human rights." "Economic stability will be the nonn,"he the armed forces, the Collor regime has begun to be described declared, "and ecological concernswill orient growth efforts. in Brasilia as a "belated Alfonsinism." The reference is to . . . Today, the cause of human rights comes first among all fonnerArgentine President Raul Alfonsin, who, on the pre­ thegovernment 's causes. " text of waging a campaign in defense of human rights, in fact What stood out most, however, was Collor's historical began to dismantle the Argentine Anned Forces by sub­ reference. He told the United Nations, "Following the eXam- jecting them to "bread and water" budgets.

EIR October 12, 1990 International 53 • reportedly provided the fugitivehead of the Medellin Cartel. In an Oct. 1 interview with the Communist Party's Voz weekly, ELN head Manuel PereZlanswered Gaviria's offer by insisting that his group would never surrender its weapons. "These terms do not exist in our vocabulary." He pledged that terrorist attacks on the oil. pipelines and installations Colombianterrorists would continue, with the modification that they would "re­ vise the form of sabotage so a� not to produce ecological get olive branch damage ." He warnedGaviria that he was very much mistaken to think that the ELN was weak arid could be taken advantage " by Andrea Olivieri of. Rather, said Perez, we are a guerrilla movement in full bloom." The fact that Voz published the interview was widely viewed as a signal that the FARC fully shared Perez's view Colombian President Cesar Gaviria' s amazing "double-joint­ on the matter. edness" is gaining international notoriety, for the head of state has bent over so far backwards to accommodate the A message to the narcos narco-terrorists who have declared war on his country, that The Gaviria offer to the ELN and F ARC was immediately many wonder if his backbone can still be intact. His latest denounced by Enrique Santos Calderon, columnist for the announcement, made on the eve of a Sept. 27 departure for daily El Tiempo. as a veiled me$sage to the drug traffickers the United States, was to offer the country's bloodiest narco­ that the more violent their demands, the more likely that terrorist groups, the Moscow-run FARC and the Cuba­ they could wring similar concessions from the government. trained ELN, four unprecedented concessions in the name of Santos is the brother of El Tiempo' s managing editor Francis­ "peace": co Santos, who was kidnaped aril is currently being held by 1) to create a negotiating commission, including high­ the drug traffickers in exchange for what they term "political level governmentofficials and notables, to establish the pa­ treatment" by the government. Wrote Santos, since the Gavi­ rameters for the "new peace process"; ria proposal was made while the guerrillas were "in full offen­ 2) to permit international oversight (Amnesty Interna­ sive, doesn't this tell the Extraditables [the cartel chiefs who tional, Red Cross, etc.) over this peace process; are under indictment in the U. S.] ithat the best way to proceed 3) to grant the terrorists "belligerent" status under Proto­ is to returnto the harshest, most violent actions, to be listened cols I and II of the Geneva Convention on "humanization of to?" war"; and Santos's comments reflected 'growing recognition on the 4) to establish mechanisms for safeguarding the human part of most Colombians-even Ithose like Santos who have rights of these so-called insurgents. long advocated drug legalization I and an end to extradition­ The immediate response of the ELN and FARC was to that President Gaviria has effeotively abandoned the fight issue still further demands to the government, including the against drugs. The head of state's U. S. visit was the clearest abolishing of extradition as a government weapon against the indication of this, for sitting at his right hand during the drug traffickers, a lifting of the state of siege which was National Press Club speech Gaviria gave in Washington on imposed following the mafia assassination of presidential Sept. 28 was Antonio Navarro Wolf, the "former" head of candidate Luis Carlos Galan in August 1989, their guaran­ the narco-terrorist M -19 which murdered half the Supreme teed participation in a National Constituent Assembly intend­ Court in November 1985 on orders of the drug cartels. Navar­ ed to "reform" the Colombian constitution, and the imple­ ro Wolf is now Gaviria' s minister of health. And yet, during mentation of programs to "protect" Colombia's natural Gaviria's National Press Club speech, he waxed eloquent resources from multinational exploitation. about his commitment to eradicate drug traffickersand narco­ The FARC, the armed wing of the Colombian Commu­ terrorists. "They are plain criminllls:We will never negotiate nist Party, has become known in recent years as the "Third with them," was his hypocritica1 !pledge. Cartel" because of its extensive involvement in the cocaine Gaviria also reversed his usual pointed criticism of the trade as a means of self-financing its insurgency. The ELN United States for its failure to Iback words with deeds in started out in the 1970s as a small, Cuban-backed guerrilla supporting Colombia's anti-drug efforts. This time, during force on the Che Guevara model, until it was adopted by the question and answer period following his presentation, Armand Hammer's Occidental Petroleum during the mid- when he was asked what the U. S. could do to back the war 1980s, when it was converted into a highly efficientsabotage on drugs, he answered that the U.S. was making a great force against the country's petroleum infrastructure . Re­ effort , and that it was Europe and Japan which must do more. cently the ELN has been dubbed "Pablo Escobar's personal "I am impressed by Bush's wilL to support Colombia," he army ," a reference to the protection services the ELN has told the surprised audience.

54 International EIR October 12, 1990 • not even normal police action against what was clearlyarmed insurgency. The Croatian government was only too aware that any move by Croatian police to crush the Knin distur­ Yu goslaviaheads bances would be seized upon as the pretext for sending the Serbian-controlled Yugoslav Army into Croatia. Croatia's for dismemberment governmentwarned on Oct. I: "This [Serbian declaration] is very serious. It is a request for military intervention. Up until now, the Army has steered clear. ". by Konstantin George Only three days earlier, Sept. 28, the Yugoslav Army leadership had threatened to intervene against Croatia's west­ A fatal mix provided by the economic effects of the Gulf ern republic neighbor and ally, Slovenia, after Slovenia had crisis and a resurgent Greater Serbian chauvinism in Yugo­ defied Belgrade and assumed control over its territorial de­ slavia has createdthe potential for local wars and superpower fense forces. outside military interventions in the Balkans, known tradi­ The stage for even greater troubles is already set for tionally as the powder keg of Europe. November, when elections will be held in the centralrepublic Yugoslavia was already in the throes of economic col­ of Bosnia. There, the majority of Slavic Muslims has an­ lapse marked by the ruin of living standards through hyperin­ nounced that they intend to draw Bosnia into cooperation flation and mass unemployment. Economic misery, worst with Croatia and Slovenia. Leaders of Bosnia's largeSerbian felt in themore backward eastern half of the country, domi­ minority (one-third of the population) have announced that nated by Serbia, has been exploited by Serbian demagogues, if they are not included in the next Bosnian government led by Serbia's President, Slobodan Milosevic. A Serbian (knowing full well they will not be, given their platform of chauvinist mass movement has been formed within Serbia annexing Bosnia to Serbia), they will ally with Serbia to and among the hundreds of thousands of Serbs who comprise either detach the Serb regions from Bosnia, or have Serbia large minorities in the central republic of Bosnia and the annex Bosnia. western republic of Croatia. The movement's platform is to Once before in this century, Serbian attempts to annex redraw the Yugoslav map to create a Greater Serbia "uniting Bosnia had fateful consequences, with the June 28, 1914 as­ all Serbs" under one rule. sassination of the Austrian Archduke Francis Ferdinandin the The $2 billion in added costs deriving from the Persian Bosnian capital of Sarajevo, which triggered World WarI. Gulf upheaval for the remainder of 1990 alone, has taken away the last hopes for politically containing the inter-ethnic Bulgaria unstable conflict,and opened the finalphase of Yugoslavia' s dismem­ Most worrisome is that the unfolding Balkans crisis is berment. not confined to Yugoslavia. The economic effects of the On Oct. 1 an armed revolt was launched by the 600,000- Anglo-American-caused Gulf upheaVal have also sealed a strong Serbian minority which makes up 12% of Croatia's death warrant for the physical economy of neighboring Bul­ population, against Croatia's first non-Communist, demo­ garia. While Western media have not run the alarmisthead­ cratically elected government. Concentrated in Croatia's lines that the situation warrants, Bulgaria already by Septem­ Knin region, armed Serbs have set up barricades, blocking ber had plunged into the worst socio-economic crisis of its road and rail traffic, and declaredtheir autonomy. The Serbi­ modem history. Going into October, i.e., during and after an minority announced that should Croatia try either to sup­ the harvest, supplies of basic foods and other consumer es­ press this "autonomy," or move either toward independence sentials were worse than even during the war. or towardbecoming a loosely affiliatedconfederated member On Sept. 24 , Bulgaria's President Zbelyu Zbelyev or­ of Yugoslavia, then the Serbian minority would secede from dered a total ban on food exports. On Sept. 1, the most Croatia and join a Greater Serbia. draconian food rationing in Bulgaria's history was imposed. In a carefully scripted move, Croatia's Serbian minority The food supply in shops in the capital Sofia and otherciti es, "appealed" to Serbia and to Yugoslav President Borislav is worse even than in the Soviet Union. Totally nonexistent Jovic, himself a Serb, "to take steps to stop the repression in are meat of any kind, cooking oil, sugar, flour, soap, and Croatia." Serbia's response arrived within hours, in the form matches. Things will get more desperate as winter nears. of a declaration by Milosevic: "The Presidency of Serbia The Bulgarian government estimatesthat 70% of the harvest demands that the Yugoslav Presidency take urgent measures entered the black market, thus ensuring empty shops for for the federal organs to perform their constitutional duty. months to come. TheSerbian Presidencydemands that the Yugoslav Presiden­ How long Bulgaria's fledgling system of "parliamentary cy protect Yugoslav citizens of Serbian nationality from the democracy" can survive this crisis is very uncertain. The repression which they are exposed to in Croatia." conditions are there, sometime during the starvation winter, No "repression" of any sort had occurred in Croatia- for an Armycoup and the emergence of a strongman regime.

EIR October 12, 1990 International 55 The motivations for the murder of Oakes and the frameup Book Reviews of de Marigny, are particularly treacherous. In the authors' view (after some introductory chapters, most of the book is written in first-person narrative styIe) , the Duke of Windsor and his co-conspirators , including Bahamas wheeler-dealer Harold Christie, were intent on covering up a scheme they were involved in to shift funds to a Mexican bank that was also handling Nazi money. The key architect of this laun­ The British art of dering scheme was Sweden's Aiel Wenner-Gren, a notori­ ous Nazi collaborator. So, during a time when Britain was at framingup innocents war with the Nazis, the Duke of Windsor was greedily in­ volved in financial schemes with a man listed in official by Mark Burdman American intelligence reports as a dangerous Nazi collabora­ tor! When Oakes became an impediment to the success of the arrangement, he was removed. De Marigny, whom the unscrupulous Duke of Windsor personallydetested, was the A CODspiracyof CroWll8: The True Story of convenient fall-guy. the Duke of Windsorand the Murder of Sir To this day , de Marigny reg�ts that the full story of the H8I1'fOakes Duke of Windsor's role in the frameup was never allowed to by Alfred de Marigny with Mickey Herskowitz come out in court. Even his own lawyer, who otherwise Bantam Press, London, 1990 pursued the case mercilessly to win his acquittal , backed off 308 pages, with index, £14.95 during the trial from pursuing the Duke of Windsor's role, out of an undeserved loyalty to . the British Royal Family. The Duke of Windsor himself, as Royal Governor, was able Of the many recent books on the Duke and Duchess of Wind­ to suppress attempts to reopen the investigation into Oakes's sor, this one is among the most scandalous. The authors murder, and no official agency, whether British, American, develop the case that the Duke, as Royal Governor of the or Bahamaian, has ever forced thetruth to come out. Bahamas in the 1940s, was "a willing conspirator in a plot One puzzling element in the book is de Marigny' s cursory to send an innocent man to his death," in order to cover up dismissal of another theory of the Oakes murder that has his own treasonousand illicit involvement in an international received circulation in recent years, based on an investigation money-smuggling coordinated by a top Nazi-linked oper­ by the American criminologist Marshall Houts, who later ative. wrote a book on the subject. Houts's thesis, given credence The innocent man was co-author Alfredde Marigny him­ in a 1988 British book on the Duke and Duchess of Windsor self. In July 1943, he was charged with the murder of his (King of Fools. by John Parker) , was that Oakes was killed father-in-law, the eccentric multimillionaire gold miner Sir by a mafia hit team deployed byi Meyer Lansky. According Harry Oakes. De Marigny's good fortune was that the frame­ to this analysis, Lansky had arranged, with the Duke of up was so crude, that even in the British-run Bahamas, he Windsor and others, to make tbe Bahamas into a casino­ was acquitted. gambling center, a la the French Riviera so much beloved Using trial transcripts, the authors show how the frameup of the Duke. Oakes got into the way of the plan, and was was concocted, with a central role being played by mob­ eliminated. connected police investigators from Miami, Florida, brought Lansky's name is never mentioned in A Conspiracy of in personally through the intervention of the Duke of Wind­ Crowns. Whatever the reasons, one has to grant de Marigny sor. The reader gets a shocking insight into how the British the right to come to his own con¢lusions: He was the victim Establishment arranges frameups. What is even more aston­ of an atrocious operation, whichl caused him much physical ishing is the central involvement of the former Edward VIII, and emotional suffering, and this book is his testament. But who abdicated in 1936 over his marriage to Wallis Warfield for others , the Duke of Windsor-Lansky connection, both in Simpson and became the Duke of Windsor . The Duke emerg­ the Oakes affair specifically and more broadly in gambling es from this book as a petty mafia thug, in addition to his and organized crime in the Caribbean, would be a matter for better-known roles of racist, anti-Semite, and Nazi sympa­ fruitful investigation. One wonders what insights the late thizer. The former Edward VIII had it out for de Marigny, an King Edward VIII's longstanding intimate since the mid- iconoclast of French descent, bornon the island of Mauritius , 1930s, the strange British intelligence operative Kenneth de who once had the acute sense to refer to the Duke, within his Courcy (a.k.a. the Duke of Grantmesnil), today the author earshot, as "nothing more than a pimple on the ass of the of the Special Offi ce Brief newsletter and other arcane items, British Empire. " might have on this matter?

56 International EIR October 12, 1990 Dateline Mexico by Carlos Cota Meza

A Trilateral oil grab ton "bridge" into Canada have in­ Negotiations around a North American Common Market will creased by a mere 10%. As a result. expectations for production increases still have but one goal: Mexican crude fo r the United States . in Canada fell from 2.8% to 1.9%. Unemployment grew from 7.5% to 7.7%; in Ontario alone, 71,000 new Without further ado, the Carlos Energy Fernando Hiriart has an­ jobs were predicted for 1990, some Salinas de Gortari governmenthas an­ nounced that "an increase in the pro­ 19,000fewer than in 1989. nounced, through Trade Secretary duction and export platform of hydro­ Simon Reisman, a Canadian ne­ Jaime Serra Puche, that talks with carbons is imminent," but the Bush gotiator on the Trade Pact with the Canada to integrate that nation into a administration, according to the Sept. U . S., maintains that there are "nega­ Trilateral Free Trade Pact (Mexico­ 28 New York Times, considers Mexico tive effects of a global nature" stem­ U.S.-Canada) have already been to be moving too slowly. "Talks with ming from the agreement. "Canadian launched. The talks are occurring de­ [oil producer] Venezuela have been manufactured goods are between 20- spite the fact that the Mexican Senate much more encouraging," the Times 25% less productive than those of the had only authorized negotiations for reported. Indeed, officials of the state United States. . . . Canada exports a bilateral Free Trade Pact with the oil company Pemex have denounced merchandise [while] it importsservic­ United States. growing pressures by Shell, Texaco, es, investment and technology from The sudden appearance of a third Exxon, and Chevron to permit their the United States. The result is that party in the negotiations is reportedly "association" with Pemex in the ex­ between 1989 and 1990, Canada a result of U.S. pressure. Some busi­ ploration, extraction, and marketing has-for the first time in recent ness layers in Mexico have responded of the Paleocafion de Chicontepec oil years-an important balance of trade negatively to the idea, with fields. These fields, where extraction deficit with the United States." spokesmen for such Mexican business of crude is reportedlythe most techni­ The executive secretary for the associations as Concamin, Canacin­ cally difficult in the world, nonethe­ U.N.'s Economic Commission for tra, and Concanaco describing the less are one of the largest crude re­ Latin America (ECLA), Gert Rosen­ sudden change as "dangerous," alleg­ serves in the world: a 3,000 square thal, recently warnedof the risks that ing that Canada will pressure the Unit­ kilometer basin with an accumulation Mexico will face in signing such a deal ed States against giving "more advan­ of 100 billion barrels of crude in situ, with the U.s. The most evident risk, tages" to Mexico than those and a recovery capacity of 17%, or 17 according to Rosenthal, is "the mas­ supposedly attained by Canada in its billion barrels. sive bankruptcy of companies that own bilateral trade pact with the U.S. While the U.S. is reaching for cannot compete .... [Mexico] has The central issue at stake is Mexi­ Mexico's oil, one can only wonder very small-scale production com­ can oil and how quickly the U. S. can what Mexico hopes to gain. The Ca­ pared to the United States." get its hands on it. In fact, none of the nadian example is not promising. A The second risk is that "the trade governments currentlyinvolved in the recent survey published by Free Trade opening is too accelerated," which not trilateral trade talks deny that the sud­ Consultants one year afterthe Canadi­ only will produce "bankruptcies and den acceleration of negotiations is due an-U.S. Free Trade pact was signed, unemployment," but also raises the to thePersian Gulf crisis, nor do they reveals that many Canadians consider question of whether the Mexican deny the fact that Mexican oil has be­ the pact a failure . economy is "in any shape to withstand come a "strategicpriority" for both the The main point of the survey is this, and in submitting itself to a long U.S. and Canada. At the recent U.N. that in simultaneously offering the period of adjustment and recession, is General Assembly session, Bush, Sa­ products of both economies to a single placing its bets on something that it linas, and Canadian Prime Minister consumer market, the Canadian side cannot be absolutely sure will occur." Brian Mulroney were repeatedly pho­ prefers American products. Canadi­ The third risk, concludes Rosenthal, tographed together, with Salinas usu­ ans who cross the Rainbow and Whirl­ is that of "subordinating the Mexican ally sandwiched between his "ad­ pool "bridges" to buy in the U. S. have economy to the vagaries of the U. S. vanced sector" colleagues. increased in number by 60% , while economy," which is periodically jolt­ Mexico's Secretary of Mines and those crossing the Lewiston-Queens- ed by recessions.

EIR October 12, 1990 International 57 International Intelligence

Wo rld War II. "The enemy state articles re­ unforgiving capitalism and economic impe­ Italy hit by ba"age maining in the Charterare inappropriate and rialism. The triumphs of last year's revolu­ of assassinations meaningless in this new age and should be tions in Euro� are beginning to ring hollow. done away with as soon as possible," Japa­ How could w� possibly forget there was a nese Foreign Minister Taro Nakayama said "There are areasof Italian territoryin which Third Wo rld, and after this crisis takes its in a speech at the U.N. on Sept. 25 . the function of the state has weakened," de­ course, will we still keep forgetting?" This is the first time in 29 years that clared Italian President Francesco Cossiga The newspaper also published a report Japan has called for such a move at a high by its WashiQgton correspondent Michael on Sept. 23, after a magistrate, Judge Rosa­ government level. It paralleled a similar call rio Liviatino, was assassinated in Sicily. He Pye, calling anti-Arab feeling the new kind issued by Italian Foreign MinisterGianni de of anti-Semiti$m. "Anti-Semitism has been was investigating dirty-money laundering in Michelis, the Japanese news agency Kyodo transferred frqm its 1920s version (hook­ an area where the mafiadoes a big business, noted. nosed, greedy bomb-toting, dirty, inexpli­ extending to Thrkey and Venezuela. , Some of the fivepermanent members of cable Jews-Jphn Buchan stufO, to a brand­ During the preceding week, a dozen the U.N. Security Council have traditionally new modem doncept (hook-nosed, greedy, people, including three children, were as­ been reluctant to agree to any amendment to bomb-toting, unscrupulous, conspiratorial, sassinated in Naples, in the context of fac­ the Charter, believing that this would in­ dirty, inexplicable Arabs-Sidney Sheldon tion fights within the camo"a, the Neapoli­ crease pressure for a restructuring of the Se­ stuft) ." tan mafia. The number of mafia-type curity Council. Japan, Germany, India, and assassinations is growing day by day, run­ Brazil are believed to be among the states ning in the order of more than 1,000 victims aspiring to permanent membership on the per year. Gaviria �ores hypocrisy council, according to diplomatic sources . "Terrorism," said President Cossiga, quoted by Kyodo. of "was widespread, but never before had the u. s. war on drugs capacity to control a territory. Those crimes , Colombian Pr�sident Cesar Gaviria 1hlj illo perpetrated by the mafia, instead, are not drew a striki,g comparison between the common crimes, but real attacks against the Scots score We stern multibillion-d�llar outlays for George security of the state and of the republic." contempt fo r Arabs Bush's Midea$t adventure, and the failure Cossiga called for the creation of special of the advanced sector countries to give ma­ anti-mafia coordination bodies, involving Scots nationalist Patrick Kane, the rectorof terial substance to their aQti-drug rhetoric. all the relevant institutions of the state and Glasgow University, criticized the govern­ In his Sept. 21< address to the U.N. General of the local administration, in all the regions ments and media of the We st for their treat­ Assembly, ident Gaviria charged: affected. � ment of Iraq and the rest of the Arab world, "Drug trafficking may not be as tangible Pope John Paul II also addressed the is­ in a commentary in The Scotsman's week­ a threat to peace as tanks and combat air­ sue on Sept. 23. "I now ask all Italians," he end supplement in early September. craft, but it is just as real and no less said, "to be firm andcourageo us, so as to "Years of systematic contempt for the devastating. .. . The world community has contain the growing danger represented by Arab world," he wrote, "blatant double stan­ been able to tivate global cooperation to the culture of death. Let us stop the stream af dards over Israeli aggression . . . all this can face possible war and to defend international of blood, the mourning, the suffering. Let be forgotten in a righteous strike against a law. We have in less than a month mobilized all the forces of the country unite to proclaim dictator. . . . It is interesting how Saddam enormous war power from one end of the with a loud voice the will to live in a serene Hussein's first substantial peace initiative world to the other. I am convinced that we way and to build a civilization respectful of correctly seized on the lack of condemnation would be able to achieve similarly satisfac­ man and of his dignity as a person." of Israel's savageries towards Palestinians tory results in the fight against the drug and Lebanese .... trade .... "For years , well-heeled humanities "In light ofithe recent crisis in the Persian Japan callsfor revision mandarins have been gleefully trumpeting Gulf, Preside�t Bush requested and ob­ the decline of modernity.... After Nietz­ tained econo�c assistance to offset the of the U.N. Charter sche, after May 1968, all is plurality, every costs of the U. *. effort and thus help to guar­ value is relative.... A substantial body of antee the effec�of the U.N. decisions. Fight­ The Japanese government has issued a call Middle Eastern opinion would regard the ing an enemy even more dangerous to hu­ for the U.N. Charter to be revised, to delete emptiness of the We st's traditions in a less manity, Colombia has received repeated references to "enemy states" defeated in philosophical light, i.e., a lie to cover its statements of solidarity but very few real

58 International EIR October 12, 1990 Brildly

• LECH W ALESA welcomed the unification of Germany as the end of Yalta, in a statement printed by the daily Franlifurter Allgemeine Zei­ measures of support. While nations have to mean much, Clostermann says, since the tung on Sept. 29. "We welcome with demonstrated their economic support of the American invasion of Panama; since the joy what has occurred without vio­ United States, on the other side of the world, British war against Argentina over the Mal­ lence or bloodshed," he said, "be­ Colombia, fightingagainst the other enemy vinas islands , which had been on the list cause the overcoming of all the con­ of humanity and sufferingeconomic and so­ of territories to be decolonized since 1947; sequences of the Yalta accords, cial hardship,has received no compensation since the Soviet invasion of Afghanistan; which were repressing the peoples, at all. and since Israel's occupation of Arab terri­ has always been the objective of Sol­ "It is time that repeatedly announced ini­ tories. idarnosc ." tiatives be translated into concrete action." • ISRAEL and the Soviet Union Stasi terror a threat have agreed to reestablish consular Growing concern in relations. Though the two states be­ to unified Germany gan moving toward diplomatic rela­ France over Gulfpo licy tions in 1987, full ties have been German anti-terrorism experts are warning blocked by Moscow's insistence that French Defense Minister Jean-Pierre Che­ that underground cells of former agents of the Palestinian conflict be resolved venement warned that a war against Iraq the East German Stasi secret police may be in a manner approved by the Arab could lead to Wo rld War III, in a radio talk mobilized for attacks on institutions and states. show on Sept. 30. "If there were a war," he leading figures of the newly united Germa­ said, "it would be the beginning of a global ny. This is the most explicit official recogni­ • THE JORDANIAN daily Al confrontation which would not be limited in tion to date of what EIR has referred to as Dastour published an article by EIR ' s time and in space." "Operation ltoj an Horse ." Joseph Brewda in mid-September, ti­ He said that it is an exaggeration to com­ Heinz Neusel , the assistant minister of tled "Superpowers push Mideast pareIraqi President Saddam Hussein to Ad­ the interior and coordinator of anti-terrorism war." Brewda reports on a July 3 olf Hitler, and as for chemical warfare , the measures, who escaped an assassination at­ statement by Lyndon LaRouche Europeans were the firstto use gas, in 1915, tempt at the end of July, was quoted in Der which forecast that the "British zom­ and therefore Europe has no lessons to teach Sp iegel magazine at the end of September, bie state" of Israel was planning a on this score. saying that there is evidence that former new Middle East war to provide a Other French commentators outside the Stasi desperadoes are organizing them­ "final solution" to the "Palestinian government are growing even more outspo­ selves into clandestine cells, equipped with problem." ken in their opposition to the Anglo-Ameri­ explosives and weapons from secret depots can Gulf policy. "What French interests are to which only a select group of Stasi opera­ • SOVIET NUCLEAR warheads we defending?" asks analyst Pierre Closter­ tives had access. The weapons, he says, are have been moved out of potential eth­ mann in a commentarypublished in the dai­ "enough to arm an entire medium-sized nic hot-spots , according to Soviet ly Le Figaro on Sept. 27. Clostermann is army." Chief of StaffGen . Mikhail Moisey­ one of the most respected representatives of Ralf Merkel, vice chairman of the office ev, in an interview with the Washing­ the FrenchResistance during Wo rld War II, in East Berlin that is overseeing the dismem­ ton Post on Sept. 27. a member of the order of the Compagnons berment of the Stasi apparatus, said in an de la Liberation, one of the most famous interview with the daily Die We lt published • JAPANJS DEFENSE agency pilots in the war, and a recipient of the Great on Sept. 26, "The country is still covered played down the Soviet Union as a Cross of the Legion of Honor. with a network of old SED [communist] threat, in its annual White Paper re­ Clostermann asks if defending the $1.5 cliques, and either we succeed in destroying leased Sept. 18. The White Paper billion annual oil revenues received by the the old SED connections at last, or unity is concludes that domestic difficulties Saudi king's family is worth the life of a endangered, even if we are reunified from and the international environment French pilot, or if the oil revenues of Ku­ Oct. 3 on." makes Soviet aggression against oth­ wait, owned by eight families, are worth the "Nonsense talk about plans for amnesty er countries unlikely. But Prime Min­ life of a seaman on a French ship, or even if must end," Merkel declared. "Not a single ister Toshiki Kaifu's national securi­ the defense of interests of Aramco and the document file must be destroyed. . . . The ty adviser, Ichiro Yoneyama, Anglo-American oil companies is worth the nervous system of the former MfS [Ministry indicated that this shift will not affect life of a soldier. of State Security] is not as destroyed as it Japan's defense planning. "International morality" does not seem has been presented nowadays."

EIR October 12, 1990 International 59 �TIillNational

Holocaust in Panama returns to haunt Bush

by Carlos We sley

CBS News' "60 Minutes" program provided graphic evi­ cently fired after he spoke about bombing downtown Bagh­ dence on Sept. 30 that thousands of Panamanian civilians dad, Iraq. "Governments are not supposed to wage war on were indiscriminately massacred by George Bush's invading civilians," said Wallace. army during the invasion of Panama last Dec. 20. The CBS "But if civilian casualties are an issue in the war that the program was the second time in two days that Bush was taken V. S. seems to be edging closer to in the Middle East, perhaps to task for the holocaust he wrought in Panama. it's a good time to take a hard look at what happened to In a speech on the floor of the House on Sept. 28, Rep. civilians the last time the Vnifud States went to war: the Henry Gonzalez (D-Tex.) scored the administration for its invasion of Panama-Operatiop Just Cause," when, said hypocrisy in condemning Saddam Hussein for his actions in Wallace, "Many Panamanian clvilians, good friends of the the Mideast after the V . S. "incinerated" several thousand old Vnited States, were gunned down or caught in the crossfire men, women, and children in Panama without giving "a hoot as V. S. forces went after the scalpof Gen. Manuel Noriega." for them." Gonzalez accused Bush of being responsible for The V.S. official figure is 202 Panamanian civilians killed, "war crimes" and of using "Hitlerian tactics" in Panama. said Wallace, but "when you go to Panama you find that Bush is facing increasing heat for the Panama massacre figure hard to believe." at a time of growing resistance to his committing the V. S. to "How in the world was the V. S. Army able to hide the a similar bloodbath against Iraq . The President is also in deep number of civilian deaths in a country with a population of trouble because of the nation's economic and budget crisis. only two million people? One waywas to bury bodies secretly EIR founding editor Lyndon LaRouche had warned that in mass graves," said Wallace. The cameras showed a soldier the President would find himself precisely in the situation stopping a reporter from filming a mass burial site. Despite he is currently facing. Hours after Bush invaded Panama, government efforts at a coverup, some details leaked out, LaRouche issued a statement charging that the massacre in said Wallace. "For example, reporters found that more than Panama was an action carried out in "the spirit of Tiananmen 100 bodies were buried at the Jardin de Paz, the Garden of Square" and that it would eventually cause a political backfire Peace Cemetery in Panama City;" that "will lead in all probability to Mr. George Bush's resig­ Thousands of Panamanians :who have been looking for nation from office"before completing his term, EIR reported the bodies of their loved ones since the invasion have been Jan. 5, 1990. unable to findthem . "Finally, IsabelCorro was able to raise Alone among American media, EIR has consistently re­ more than $25,000in private donations that she used to con­ ported on the magnitude of the Panama massacre from the duct two exhumations. The bulldozers began to open the beginning of the invasion. As early as Jan. 5 EIR reported, mass graves at the Jardin de Paz;' in late April. "In all, 5,000 to 7,000 Panamanians, mostly civilians, died The cameras then showed sUrvivors searching for their during the invasion." relatives among the decomposed bodies, and scores of body bags being disinterred and transfered to coffins for a proper Secret mass graves burial. According to reporter Mike Wallace, the exhumations Veteran CBS correspondent Mike Wallace opened the and identifications continued for eight days amidst the horri­ "60 Minutes" segment on the Panama massacre by noting ble stench of death. Among the bodies, Isabel Corro, who that Air Force Chief of Staff Gen. Michael Dugan was re- heads the survivors' organization, found that of her own

60 National EIR October 12, 1990 father. But "many people who came to find their missing attorneys who have lived for many years in Panama where relativesleft the cemetery disappointed. They are still search­ their father was the CIA station chief. They, and another ing," said Wallace. Some of the few who did findtheir miss­ American attorney , Michael Pierce, are representing some ing family members "had to go into the pits five or six times of the victims who are seeking compensation. But the V.S., to look at what was left of the bodies after five months in the which paid compensation to the victims of American inva­ ground" in a hot, humid, tropicalcountry . sions in the Dominican Republic and Grenada, is refusing to Neither the V. S. nor the government it installed in Pana­ do so in Panama. ma helped the people in any way during the days they were According to an official Department of Defense docu­ searching the mass graves. "And while there are at least six ment, a program to indemnify the victims similar to that or seven more mass graves," said Wallace, the leader of the instituted in Grenada "would not be in the best interest of the survivors' group, Isabel Corro, "has run out of money to Department of Defense of the U. S. because of the potentially continue. " huge numbers of such claims." As David Kiyonaga said on the show, "If you have a claims programs, then all of the Bush lied claims will come out of the woodwork, and then you'll see One of the most telling moments in the "60 Minutes" exactly how costly this invasion was in terms of human life. broadcast was when Bush was shown telling the American And our governmentdoe sn't want to grapple with that .... people on the day of the invasion that "the way we went after [The invasion] was great public relations, it was great for the some of these targets was to minimize civilian casualties." President. We did a good military action, everybody loved According to Bush: "a lot of [American] kids risked their it. " lives going in at night" to avoid harm to civilians. But, Bush Before the invasion, the people of Panama were very pro­ did not tell the truth. American. Since the massacre , said Wallace, "if anything, CBS presented graphic proof that there was no demon­ anti-U.S. sentiment is growing every day." Film of a recent strable concern about minimizing the killing of civilians. demonstration to protest U.S. policy was shown on the pro­ Instead "the massive firepower" employed in "the largest, gram, and thousands of marchers could be seen--estimates most powerful V.S. military offensive since the Vietnam were 10,000 people-carrying anti-American slogans, "and War" was used without any consideration of the harm that signs of 'Yankee, go home,' are being spray-painted all over would be done to innocent people. Panama." The cameras showed the slum neighborhood where the headquarters of Panama's Defense Forces were located, EI The U.S. occupation continues Chorrillo, going up in flamesas a result of the V.S. bombard­ Representative Gonzalez made the same point on the ment. "Twenty-five thousand people lived there , and they floorof the House on Sept. 28. "I will tell you my colleagues, were asleep in their beds when the world around them began we still have our troops governing and running Panama. We to incinerate," the CBS program reported. dare not pull them out, I will tell you, because no American "When the sun came up on the morning afterthat grisly will be safe at the moment we remove our troops." Gonzalez night before, El Chorrillo was still burning out of control, ridiculed the notion that the U.S. invaded Panama to restore and reports had already begun to circulate that hundreds of democracy, noting that the man the U.S. installed as presi­ civilians had been killed and thousands wounded in EI Chor­ dent of Panama, Guillermo "Porky" Endara, was sworn in rillo alone. When the fires finally burnedthemselves out, El "at the time of the invasion at our military post and base, so Chorrillo had ceased to exist," said Wallace, as the cameras we could hardly say that he was elected." showed what used to be a vibrant community reduced to Gonzalez scored the administration for its hypocritical smoldering ashes. behavior toward Iraq , "when we invaded Panama, and com­ Is the Bush administration aware that the number of civil­ mitted atrocities such as firebombing highly incendiary ian victims is in the thousands, rather than the few handful wooden structures that had been built for the black workers of deaths it officiallyadmits to? that were imported in 1908 to construct the Panama Canal. The answer is yes, according to a copy of an official "We killed more than 1 ,000 or 2,000 or 3,000, inciner­ Armydocument shown summarizing a report from an Army ated them. They were all black or mulatto. Who has given a casualty officernine days afterthe invasion had begun: "Esti­ hoot for them? Who has given a hoot for the hundreds of mate of 1,000 civilians killed is about right. . . . Some were children who are blind, armless, old men and women in killed in the El Chorrillo section of Panama, where about 10 Panama?" Gonzalez asked. blocksof high-density housing or slums were destroyed as a "As far as I know, nobody. Would that not have been result of our ops [emphasis added]," states the secret Army called Hitlerian tactics? Would that not have been called war report. crimes?" he asked. The lawmaker said that because of his The CBS reporterinterviewed former V. S. Army Ranger behavior towards Panama, George Bush has no "moral right" John Kiyonaga and his brother, David Kiyonaga, American to attack Iraq .

EIR October 12, 1990 National 61 Early release expected fo r LaRouche, co-defendants in Alexandria railroad

Warren J. Hamerman, staff director for the Constitutional years , while the other six were sentenced to prison terms of Defense Fund, announced in a press release from Washing­ three to fiveyears each. ton, D.C. on Oct. 1 that "the U.S. governmenthas formally A book, Railroad, has been published on the Alexandria decided not to appeal the decision of two separate federal trial. Renowned jurists, human rights leaders, and political judges who found that the governmentacted unlawfully when and cultural figures around the world have protested it killed three firms associated with political prisoner Lyndon LaRouche's imprisonment. Earlier this year, former Attor­ LaRouche via a forced bankruptcy in April 1987. Legal ob­ ney General Ramsey Clark, speaking to a meeting at the servers say that this should lead to the early release of Conference on Security and Cooperation in Europe ("Helsin­ LaRouche and his co-defendants," Hamerman continued. ki" forum) in Copenhagen, described the LaRouche case as The unlawful bankruptcy was carried out by a task force the most striking example of police-state justice taking over involving U.S. Attorney Henry Hudson, Virginia Attorney the United States. General Mary Sue Terry, and the Department of Justice. Hamerman said that on Oct. 1 , lawyers for the three $40-60 million in damages to be sought LaRouche-associated entities received written confirmation "It is also anticipated that the three LaRouche-associated from Kenneth W. Starr, the Solicitor General of the United firms will be filing for $40-60 million in compensatory dam­ States, that the government had made the final decision not ages and attorneys' fees," W a.r¢n Hamerman announced on to appeal the rulings of federal bankruptcy Judge Martin Oct. 1. "Among the claims will! be full compensation for the Bostetter and federal Judge Hilton. principal and interest on the loabs to the firmsoutstanding at Each of those judges, Hamerman explained, had found the time of the unlawful government seizure, compensation that the government seizure and shutdown of the Fusion En­ for unfulfilledsubscription s, and the destruction of the 'gOod ergy Foundation (PEF), Caucus Distributors Inc . (CDI), and will and reputation' of the Fusion Energy Foundation, Cam­ Campaigner Publications was: (1) unlawful; (2) carried out paigner, and Caucus Distributots Inc. in "objective bad faith"; and (3) done by means of a "con­ "The final decision on the i bankruptcy fully vindicates structive fraud on the court." LaRouche and his co-defendants, because LaRouche politi­ "LaRouche and his co-defendants are in prison today cal supporters who lost money �id so as a result of unlawful because the government acted in double bad faith," the re­ governmentaction . Therefore, justice demands that the gov­ lease states. "First, it seized the three firms in the forced ernment must now repay the loans with interest. bankruptcy, and then it turned around and prosecuted the "The prosecution team is lot the only culpable pllrty. firms for failing to repay the loans which the shut-down The very presiding judge in the frameup of LaRouche at companies couldn't repay! This and other evidence proves his Alexandria trial in 1988-the notorious Judge Albert V. that LaRouche and his associates were innocent all along. Bryan, Jr.-was up to his eyeballs in complicity with the Unless there is a continuing fraud on the legal system by government. In 1987, after the bankruptcy, Bryan made two the government, legal observers expect that congressional rulings condoning the bankrupt¢y procedure. Then, when he candidate Lyndon H. LaRouche and his co-defendants will had the LaRouche case before him, he not only failed to be out of jail soon." recuse himself despite his prior rulings, but he granted the Mr. LaRouche was tried in fall 1988 on vague "conspira­ government's demand to ban and censor from LaRouche's cy" charges together with his associates William Wertz, Ed­ trial any evidence that the governmentbankruptcy action had ward Spannaus, Joyce Rubinstein, Dennis Small, Paul been carried out in bad faith . His outrageous order went so Greenberg, and Michael Billington. After a trial which far as to say that the defense could not even say that it was shocked international observers for its flagrant disregard for the government which brought the bankruptcy! Thus, Bryan the defendants' right to an impartial jury and to present their set up his own fraud by bamboozling the jury into drawing the own case, all were convicted; on Jan. 27, 1989, Lyndon adverse inference that it was LaRouche and his co-defendants LaRouche, then a 66-year-old man, was sent to prison for 15 who were somehow to blame." •

62 National EIR October 12, 1990 Now, therefore , we, the County Commissioners of Al­ legany County, Maryland, hearby proclaim October, 3, 1990 as German Unity Day.

Texas Proclamation by Gov. William P. Clements: German immigrants played a major role in the develop­ u. s. states, cities ment of Texas, bringing with them their culture, their love of freedom, their industriousness, and their commitment to welcome Gennanunity contribute to the building of this great democratic republic. It is proper and fitting that the people of Texas recognize A number of American states and cities recognized the im­ that, after more than 40 years of Communist dictatorship, portance of welcoming the unificationof Germany by desig­ the people of East Germany achieved their freedom. The nating Oct. 3 as German Reunification Day. The Schiller dramatic and peaceful revolution of 1990 culminated with Institute, an international organization dedicated to promot­ the tearing down of the Berlin Wall, allowing the people to ing the German classical culture of Beethoven and Schiller, reunite their country and become part of the westernalliance. had campaigned for such U. S. endorsements of the historic Therefore , I, William P. Clements, Jr. , Governor ofTex­ Germanevents . Several cities used a proclamation draftedby as, do hereby designate October 3, 1990 as Reunification of the Schiller Institute as the basis for their own declarations. Germany Day.

Louisiana The cityof Fort Worth: Proclamation by Gov. Buddy Roemer: Whereas , Fort Worth and Trier, West Germany have Whereas, on October 3, 1990, the historic reunification been Sister Cities since 1987; and, of West and East Germany will occur, to be marked by Whereas, for more than 40 years the people of Germany official celebrations throughout the new nation of Germany; have lived under two separate flags; and, and Whereas, that separation will end when Germany cele­ Whereas, Beethoven's Ninth Symphony is the "Sympho­ brates UnificationDay: ny of Hope" and Friedrich Schiller's "Ode to Joy" in the Fifth Now, therefore, Stanza [sic] of the Ninth Symphony was in honor of the I, Bob Bolen, Mayor of the City of Fort Worth, Texas, American Revolutionary War; and do hereby proclaim October 3, 1990, as German Unification Whereas, a new Germany, committed to scientific prog­ Day, ress, technological development, and Western Judeo-Chris­ and express our joy to our Trier Sister Cities friends that tian values, could serve as the engine for general economic they have been candid with their countrymen to the east and recoveryof the devastated economies of the former East bloc wish the unifiedGermany our best wishes. and the developing sector; Whereas, plans to make the Middle East desert bloom, The cityof Arlington: to tum the now arid wastes into booming urban centers, have Whereas, the people of East and West Germany having been developed, and await only determination and courage endured separation for 45 years, and have shown great cour­ to be implemented; age and given hope to the world by the peaceful liberation of Now, therefore, I, Buddy Roemer, governorof the state the East and reunificationwith the West; and of Louisiana,do hereby proclaim October 3, 1990 as German Whereas, being guided by their love for freedom and UnityDay throughoutthe State of Louisiana. inspired by the classical thinkers of their historic past, the people of Germany, holding to cultural and family ties far Maryland outweighing government policies and political ideologies, Allegany County: have involved themselves in a determined revolution remi­ Whereas, on October 3rd, the historic reunification, of niscent of our own American Revolution; and West and East Germanywill occur, to be marked by official Whereas, the newly unified Germany offers great prom­ celebrations throughoutthe new nation of Germany, and ise toward economic development and exchange on their Whereas, a new Germany, committed to scientific prog­ home front and the promotion of peace and freedom that is ress, technological development, and Western Judeo-Chris­ encouraging to a world threatened by hunger, depression and tian values, could serve as the engine for general economic aggressive confrontations; recovery in the West, as well as for the develppment of Now, therefore, I, Richard E. Greene, mayor of the city the devastated economies of the former East bloc and the of Arlington, Texas, do declare October 3, 1990 Germany developing sector; Reunited Day.

EIR October 12, 1990 National 63 Will George Bush's Mideast war be his political undoing? by Kathleen Klenetsky

PresidentBush launched "Operation Desert Shield" fully ex­ would approve invading Kuwait to force Iraq out, if that pecting that it would boost his political standing at home­ meant war. And 52% said they would oppose the permanent partly by diverting attention from such embarrassments as stationing of American forces illl the Gulf. the galloping savings and loans crisis and the overall collapse The lack of trust in the administration is making itselffelt of the economy-and bring glory and riches to the new on Capitol Hill, where a small, 'but growing, number of key Anglo-American global order that he and Margaret Thatcher congressmen are breaking ranks with the President, and with have ordained. their colleagues. House Banking Committee chairman Rep. But Bush's decision to send massive military forces into the Mideast could actually prove to be his political downfall. Opposition to the President's Mideast policy is definitely on the rise, fueled in part by rapidly worsening domestic economic conditions, as well as by the new round of warn­ "We should have ings, coming from such ominous sources as the Soviet Chief listened to MacArthur" of Staff (story, page 39), that Bush's colonial adventure in the Gulf could trigger World War III. Anti-war ferment is taking hold, not only on campuses, The fo llowing statement was issued on Sept. 27 by Lyndon but across a broad spectrum of the American population, LaRouche, congressional candidate in Virginia's 10th Con­ from church leadersand minority spokesmen, to former gov­ gressional District: ernment officials, and some members of Congress. There are growing signs that elements of the Establishment are Some years ago, Gen. Douglas MacArthur gave a most elo­ becoming increasingly unhappy with Bush's handling of the quent and insightful warning' against the folly of the United crisis, if not with the intervention itself. States pitting itself against the cause of developing nations; against the rights of the nations of the former colonial world, Reality sets in to gain the same access to ndtional sovereignty, to the eco­ In the aftermath of the jingoistic fever that initially nomic development, using scientificand technological prog­ gripped the country, people are sitting back and thinking a ress, capital-intensive, energy-intensive development, that bit more rationally about whether the U . S. deployment to the we as a nation fought to gain when we fought our oppressor, Mideast is justified, and whether Bush's alleged objectives King George Ill's Britain, back in the 18th century. are worth what most experts agree would be a particularly We have repeatedly ignored General MacArthur's warn­ bloody war. ing. The Truman administration, misled by the Harriman This phenomenon is evident in a new poll, taken at the forces (which are close to George Bush), made a fatal error end of September by a group called Americans Talk Security. in Korea, and turned that situation into a no-win war, the first A majority of those polled said they support Bush's goals in of a series of no-win wars, which destroyed the morale of the the Mideast-but a whopping 9 out of 10 said they did not American people and the defense capabilities of the United think the U. S. should start a war to achieve them. Even more States. That error was repeat�d again and again, through the revealing, 47% of those surveyed said they believed that, if colonialist mentality from the New York banking community war does break out, the U.S. government would lie to the and social democrats , who are social-democratic dogs for American people that Iraq had started it, when the U.S. larcenous, usurious bankers . actually had. We made the mistake in iAfrica, we made it in Central Another poll, conducted by ABC News and the Washing­ America, we made it in South America, we made it in Indo­ ton Post, turned up similar results. Although 78% said they china; we are making it again in Asia, and in the Middle East. supported Bush's handling of the crisis, only 48% said they

64 National EIR October 12, 1990 Henry Gonzalez (D-Tex.) introduced a resolution Sept. 5 the Constitution feared the most were king-made wars, but calling for withdrawal of all U. S. forces from the Mideast by today, do we have Presidents, co-equal, not dominant, not Oct. 1; the resolution has been referred to the House Foreign greater in power but co-equal, independent and separatefrom Affairs Committee, and, according to Gonzalez's office, has the other two organs of government, or do we have Caesars? elicited an overwhelmingly positive response from his con­ To me this is more evocative of the Caesarian period in stituents. Roman history, which you recall emerged from a republic. On Sept. 28, Gonzalez gave a stinging denunciation of The Caesars were not like we picture a modem dictator, like Bush's policy, comparing it to that of ancient imperial Rome, Hitler, or something like that. No, they wanted to be popular and calling U.S. tactics during its invasion of Panama "Hit­ with the populace. They wanted to play for public opinion. lerian." "On August 2, we were in session," Gonzalez said, They did not want to be disliked. But they assumed total and in remarks on the floor of the House. "Saddam Hussein in­ complete power, and they first had to overcome what we vaded what was known as Kuwait, a nation drawn in the sand have called the original Roman way of doing things, our by British oil colonialists back some years ago ....We do Constitution. " not have the perspective to see ourselves as the world sees Another Democratic congressman, Rep. Bob Traxler us, particularly in that part of the world. That part of the from Saginaw, Michigan, has announced thathe is "unalter­ world and everywhere else sees us as the country stepping ably opposed" to the U.S. Gulf deployment. A political pow­ into the shoes of the two departed colonial powers , Great er by virtue of his membership in the House Appropriations Britain and France." Committee-the panel that has final say over federal spend­ Gonzalez continued: "The thing the men who wrought ing-Traxler said: "I do not believe is what we are doing. I

That message from Douglas MacArthur should be heard individual dignity, or a higher standard of life such as guided again, and again, and again. You are not a lily-livered pinko, our own noble administration of the Philippines, the peoples as some folks say, if you are opposed to this war in the Middle of Asia found their opportunity in the war just past to throw East, which Mrs. Thatcher is so eager to have Mr. George off the shackles of colonialism, and now see the dawn of new Bush conduct. On the contrary: As General MacArthur says opportunity, a heretofore unfelt dignity, and the self-respect so eloquently, implicitly, you are a true patriot of the United of political freedom. States; and those who want this war, are not. Mustering half of the Earth's population and 60% of its natural resources, these peoples are rapidly consolidating a The fo llowing excerpts are from Gen. Douglas MacArthur's new force, both moral and material, with which to raise the sp eech to the Joint Meeting of the Two Houses of the U.S. living standard and erect adaptations of the design of modem Congress, April 19, 1951,' progress to their own distinct cultural environments. Whether one adheres to the concept of colonizationor not, this is the Men since the beginning of time have sought peace. Various direction of Asian progress and it may not be stopped. It is a methods through the ages have been attempted to devise an corollary to the shift of the world economic frontiers, as the international process to prevent or settle disputes between whole epicenter of world affairs rotates back towardthe area nations. From the very start, workable methods were found whence it started. In this situation it becomes vital that our insofar as individual citizens were concerned, but the me­ own country orient its policies in consonance with this basic chanics of an instrumentality of larger international scope evolutionary condition rather than pursue a course blind to have never been successful. Military alliances, balances of the reality that the colonial era is now past and the Asian power, leagues of nations, all in tum failed, leaving the peoples covet the right to shape their own freedesti ny. What only path to be by way of the crucible of war. The utter they seek now is friendly guidance, understanding, and sup­ destructiveness of war now blots out this alternative. We port, not imperious direction; the dignity of equality, not the have had our last chance. If we will not devise some greater shame of subjugation. Their pre-war standardoflif e, pitifully and more equitable system, Armageddon will be at our door. low, is infinitely lower now in the devastation left in war's The problem basically is theological and involves a spiritual wake. World ideologies play little part inAsia n thinking recrudescenceand improvement of human character that will and are little understood. What the people strive for is the synchronize with our almost matchless advances in science, opportunity for a little more food in their stomachs, a little art, literature, and all material and cultural developments of better clothing on their backs, a little firmer roof over their the past 2,000 years. It must be of the spirit if we are to save heads, and the realization of the normal nationalist urge for the flesh.. .. political freedom. These political-social conditions . . . form Long exploited by the so-called colonial powers, with a backdrop to contemporary planning which must be thought­ little opportunity to achieve any degree of social justice, fully considered if we are to avoid the pitfalls of unrealism.

EIR October 12, 1990 National 65 don't see it in the national interest, and I'm compelled to the American alliance," he sai4. raise my hand and say I dissent ....We need to come home. Other Establishment typeSI are prodding Bush to find a We have serious economic problems that deserve our full political resolution to the con�ict. Historian Arthur Schle­ attention. " singer, writing in the Oct. 1 Wall Street Journal. asked: Implicitly discounting Bush's argument that Operation "Would it not be better to regardour objectives as bargaining Desert Shield is meant primarily to get Iraq out of Kuwait, chips, accept an Arab solution, pull our ground forces out of Traxler asserted that ''There's no reason for us to be in the Saudi Arabia and declare victQry? Better this than a savage sands of Arabia except oil. There is no threat to our home­ and protracted war in which few Americans are likely to land," he added. "We could develop an energy policy that believe or long support." would free us from foreign oil. We chose not to do that. I want the U.S. energy independent and the troops home to Grass roots opposition build this country for the economic warfare of the next But it's among the general population that opposition to century." Bush's lunacy is growing fastest, fueled by a national leaflet Traxler's local newspaper, the Saginaw News, has report­ headlined, "Stop Bush's Gulf Madness or Face World War ed that 63% of the voters polled support Traxler's stand. III," issued jointly by Virginia congressional candidate Lyn­ Traxler is up for election in November, while his Washington don LaRouche and Nancy Sp�naus, a LaRouche Democrat office reports that mail responses are running 60-40 in his running as an independent for �e U.S. Senate fromVirginia. favor. Sen. Bob Kerrey (D-Neb.) has also expressed opposi­ LaRouche associates are holding demonstrations and fo­ tion to Bush's neo-colonial adventure. rums across the country, to inform people that Bush's Mid­ east policy is actually based on an Anglo-American strategy Cracks in the Establishment of seizing raw materials supplies throughout the Third Fissures are also becoming visible in what had been a World, and to lay out the parameters for a just and enduring pretty solid Establishment consensus behind the U. S. inter­ peace in the Mideast. (See also Documentation.) vention. CBS News' "60 Minutes" segment Sept. 30, which The Schiller Institute, a policy think tank founded by drew a parallel between the 4,000 civilian deaths in the U.S. LaRouche's wife, Helga Zepp-LaRouche, has held two attack on Panama, and the U.S. military strategy in the Gulf emergency seminars on the Mideast situation, one in Wash­ (story, p. 60), strongly suggests that certain policymaking ington and one in New York, which drew wide-ranging rep­ factions are either unhappy with the Mideast intervention, or resentation from the diplomatic community and the media. unhappy with Bush, or both. The theme of the seminars was how a peaceful solution to James Webb, Ronald Reagan's Secretary of the Navy, the Persian Gulf crisis could be developed, based on an ambi­ called any Middle East conflictinvolving U . S. ground troops tious economic development programfor the Mideast. an "unpardonable error," in a speech in Washington Sept. Anti-war sentiment is especially strong on thecamp uses, 27 . Webb charged that the Joint Chiefs of Staff "overreacted" where ad hoc anti-war groups are sprouting by the dozens. by sending large ground forces to Saudi Arabia. "My bottom A Schiller Institute forum at East Los Angeles College Sept. line," said Webb, "is that in terms of putting ground troops 27 drew over 100 students, and turnedinto a three-hour-long in, in a situation like this, all of the unpredictabilities go off discussion of the history of British colonialism in the Third the scale." World, and what kind of economic program is necessary to Webb continued, "How many American lives are worth produce a global recovery. The meeting concluded with the retaking Kuwait? I think anybody who says we should do formation of the East L.A. College Ad Hoc Anti-WarCom­ that ought to look into a TV camera and tell the mothers and mittee. the loved ones of the soldiers that are there that their son's Former Attorney General Ramsey Clark, who founded death is worth that price." The Coalition against Intervention in the Mideast in August, Webb made his comments at a forum sponsored by In­ has also been holding a series, of well-attended conferences sight magazine, affiliatedwith the generally pro-Bush Wash­ on the Gulf crisis. ington Times. at which other prominent Washington figures It can be expected that once the impact of the deadly also criticized Bush's policy. James Schlesinger, who has budget "compromise" worked put by Congress and the White served as both Defense Secretary and Secretary of Energy, House at the end of September starts to be felt, Bush's war and is certainly no dove, warned that a U.S. war with Iraq will get much less popular, fast.. Given that the budget deal would not lead to a new era of peace and cooperation that savagely assaults the already-diminishing living standards of Bush has said it will, even if the U.S. is victorious. the working and middle classes, and especially the elderly, · "We're unlikely to see that new world order," said Schle­ the President is going to find it difficult indeed to maintain singer, warningfurther thatthe American population won't broad-based, popular support for his Gulf adventure. In fact, tolerate a long, drawn-out conflict. "Given the underlying he'll be lucky if he doesn't findhimself the target of a nation­ instabilities in the Gulf, it provides every disenchantment of wide impeachment movement.

66 National EIR October 12, 1990 assigned to destroy Japan and Germany, which succeed be­ Conference Report cause they practice American System economics. Eastern Europe was also targeted by Ted Shackley, the former Deputy Director for Operations of the CIA, in a Sept. 29 presentation. Although monetarist economist Jeffrey From Cold War to Sachs is already ruining Poland with his International Mone­ tary Fund-style austerity "shock therapy," Shackley does not economic warfare think this enough. "Project Democracy's" National Endow­ ment for Democracy is already sending economists like by Scott Thompson Sachs to ruin the other Eastern European nations, but Shack­ ley wants to run espionage so that "Germany cannot dominate Central Europe." At the Sept. 27-29 national convention of the Association of From bases in Western Europe, Shackley proposed that Former Intelligence Officers (AFIO) in northern Virginia, espionage be mounted against EasternEurope , which he de­ the "Old Boys" of U.S. intelligence gathered to get the line scribed as a "window" for gathering intelligence on Europe on what the services would do, now that President Bush has 1992 and the U.S.S.R. Among this unit's tasks, he said, officially proclaimedthe Cold War to be over. One speaker would be to steal every scientific breakthrough that had mili­ after another said that the solution was to give economic tary or economic application, for the United States. Shackley intelligence the same priority as the Soviet Union. told me that Germany would even help set up this operation, In his speech on Sept. 28, Deputy Director of Central because the publicly announced U.S. targeting of Germany Intelligence Richard Kerrechoed earlier statements of Direc­ would only be a "minor irritant." tor of Central Intelligence (DCI) William Webster, to say that Japan and Germany would be the top targets for this Targeting LaRouche intelligence gathering. Kerr motivated the targeting of friend­ The only debate was over the question of industrial espio­ ly allies by asserting that with East-West tensions lessening, nage-i.e., the theft of trade and development secrets. CIA the Western economic crisis would come to the fore . While Director for Public Affairs Joseph Di Trani said that his many European nations want to keep NATO to preserve the Agency had just completed a study of guidelines for how U.S. as a world power involved in Europe, Kerr argued, such espionage could be turned over to U.S. corporations. even within NATO the momentum will shift to economic He said the study was now before policymakers at the highest issues. Kerr said that studies are being done to see whether level for approval. NATO can be transformed into a political and economic Di Trani admitted privately that there was little new about alliance which would permit U.S. participation in the Euro­ the economic intelligence question, except a change of tar­ pean Community. But, he added, it is likely that "Europe gets. He agreed that in 1982-83 during the outbreak of the 1992" will soon eclipse both the U.S. and the Pacific Rim as Ibero-American debt crisis, then DCI William Casey and the dominant economic power. Leo Cherne, then vice chairman of the President's Foreign One would think, styling itself an "intelligence communi­ Intelligence Advisory Board (PFIAB), had used the gamut of ty," that the intelligent thing to do would be to discover how capabilities-including electronic means-to spy on Ibero­ Germany has benefited from the principles of economics American countries on behalf of Chase Manhattan and Citi­ enunciated by Gottfried Leibniz in the 18th century and bank. Moreover, Di Trani agreed that Henry Kissinger had Friedrich List in the 19th, in a system which resonates with been the liaison between PFIAB and these creditor banks to that of the first U.S. Treasury Secretary, Alexander Hamil­ collect the debt. While the Casey-Cherne-Kissinger policy ton. Or, U.S. intelligence might study the impact of the of genocidal debt collection has leftChase and Citibank still Carey brothers (Lincoln's economists) upon modem Japan on the verge of bankruptcy, one of the key issues for their through the Meiji Reformation, which created MITI as a mounting the "Get LaRouche" task force was disagreement version of Lincoln's National Bank to fund scientific and with LaRouche's "Operation Juarez," which would have technological breakthroughs. But, various participants at the both saved the banks and permitted Third World economic APIO convention stupidly defended the "flea market" eco­ growth. Cherne and Kissinger targeted LaRouche as an out­ nomic system of British East India Company agent Adam growth of their economic warfare activities. Smith, even though its adoption has brought the U.S. physi­ Di Trani said the difference in what is now being planned cal economy to the brink of collapse. is that the former was ad hoc, while Webster is proposing a U.S. intelligence ought to examine Friedrich von Hayek, fu ll-blown program . Every indication is that it means a U.S. the Mont Pelerin . Society, and Wharton Econometrics as intelligence effort to drag down the economies of Germany agents of a seditious monetarist economic system. Instead, and Japan, the only engines of economic productivity that APIO spokesmen indicated that U.S. intelligence will be can save the U. S. from the ruin of British economics.

ElK October 12, 1990 National 67 Congressional Closeup by William Jones

Souter confirmed In one disagreement, the Senate for the finaldays of discussion. for U.S. Supreme Court bill would ban all contributions from The delays indicate fear among political action committees (PACs) , The Senate voted 90-9 on Oct. 2 to some legislators that this total surren­ confirm Judge David Souter to the while House Democrats, whose mem­ der to the environmentalist lobby bers are much more dependant on U.S. Supreme Court. could so�nd the death-knell for what PAC contributions from labor unions The nine votes against Souter is leftof Q . S. industry, creating over­ and other organizations, want only a came from liberal Democrats who whelming costs which will accelerate ceiling put on PAC contributions. feared that he would vote to restrict the rate of bankruptcies in the President Bush has promised to veto what they considered a woman's con­ economy; the legislation, if it is passed. stitutional right to have an abortion. Environmentalists are not happy The chances that the House-Sen­ "I am troubled that if Judge Souter about the delay. "I'm very distressed ate conferees will iron out the differ­ joins the current closely divided Su­ by the lacJc ofprogress," Sen. John H. ences in the bill are very slim. "Any­ Chafee (R.-R.I.) told the conferees. "I preme Court, he will solidify a 5-4 one who says the chances are good is feel what is going on here is a delaying majority inclined to turn back the lying to himself or someone else, but strategy. I worry that we're going to clock on the historic progress of recent we have got to try,"commented Rep. be put in a take it or leave it position." decades," Sen. Edward Kennedy (D­ Al Swift (D-Wash.). This opinion was Sen. Max Baucus (D-Mont.), a Mass.) said. seconded by Sen. Mitch McConnell spokesman for the environmentalists, Senate Judiciary Committee (R-Ky.), who regards the chances of said that the two sides are "still miles chairman Sen. Joseph Biden (D-Del.) compromise as "nil." apart on key issues." said he voted to confirm Souter be­ Some legislators are aware that cause he thinks Souter "is not the sort this is not going to go down well with of man who would run roughshod the voters. "There's a real prairie fire over the Constitution," but conceded out there," said Rep. Mike Synar (D­ Souter's positions on religious free­ Okla.). "As long as people think the enate backs consensus dom, racial discrimination, and abor­ S special interests have Congress in for Gu.f deployment tion rights were unclear. gridlock, they won't have confidence The Sen�e voted overwhelmingly on in anything we do . I don't know how Oct. 2 in favor of Senate Concurrent many more wake-up calls Congress Resolution 147 which supports the will get," he warned. present U.S. troop deployments in the Campaign financingbills Gulf. make good electioneering Although it characterizes the ac­ The House and Senate passed separate tions simply as a "participation in col­ bills to revise campaign financing lective security actions" and empha­ laws during the summer, but the bod­ C lean Air bill delay sizes that they be conducted in ies remain sharply divided on key pro­ may kill it for now accordance with the U.N. resolutions, visions of the legislation. It is likely The House-Senate conference on the it authorizes the President "to protect that the reform will go nowhere, al­ Clean Air bill erupted into a shouting American lives and vital interests in though congressmen can now go into match on Sept. 28, with both sides the region," a provision which could the November elections claiming that blaming the other for delay on the bill easily be used to justify military action they have voted to reform the cam­ which threatens the chances of pass­ in the waJeeof some alleged provoca­ paign financingproce ss. ing the legislation before Congress ad­ tion, i.e.� another "Gulf of Tonkin" At a time when Congress is con­ journs in October. go-ahead for military engagement. sidering increases in the costs to the Since the negotiations began in The resolution calls on the President individual of such necessary items as July, conferees have resolved only a to "conSUlt with the congressional Medicare, it's very uncertain that vot­ few of the least controversial issues, leadership" prior to committing U.S. ers, who are in a strong anti-Washing­ leaving the more divisive issues of Armed Forces to hostilities unless ur­ ton mood, will accept these claims. smog, acid rain, and airborne toxics gent circlllmstances do not permit.

68 National EIR October 12, 1990 The Senate has been hesitant to about free elections and what about Ala.), ranking Republican on the invoke the War Powers Act, which Saudi Arabia?" Colen warned, "Peo­ Armed Services Committee, said that stipulates that the President may de­ ple will become divided." President Bush had told him that he ploy troops if he determines that an A similar resolution of support ap­ would veto the bill. emergency exists, but that within 60 proved by the House Foreign Affairs Overall, the bill includes cuts of days thereof there must be an act of Committee on Sept. 27 stated that "the $24 billion from the administration's Congress-which has the constitu­ United States shall continue to empha­ request for defense in the fiscal year tional power to declare war-in order size the use of diplomatic and other beginning Oct. 1. It reduces overall for the action to continue. means" to achieve its objectives. The troop strength by 129,000, eliminates Some fear that the resolution will resolution will come to the floorof the research money for the MX and . give indirect support for further esca­ House later in October. Midgetman intercontinental ballistic lation in the Gulf. Sens. Bob Kerrey missiles, but includes $1 billion for (D-Neb.) and Mark Hatfield (R-Ore.) assisting the military buildup in the have called for invocation of the War Persian Gulf. Powers Resolution in response to the Funding cut for overseas The House action puts it in conflict Gulf deployment. Congress is "the with the Senate bill which leaves the military construction artful dodger" in its refusal to vote on B-2 bomber request intact and reduces The Senate on Oct. 1 approved an $8 invoking the War Powers Resolution, SDI by $1 billion. billion military construction bill that Hatfield said. Since the concurrent makes wholesale cuts in the budget resolution has no force of law, Hat­ for overseas projects and prohibits field characterized it as a "press re­ spending u. S. dollars on a new air lease for the Senate. " "We are the em­ reenspan blames base in Italy. G bodiment of hypocrisy. . . . We must recession on oil price The Senate trimmed $1. 1 billion ask questions about the Gulf without In testimony before the Joint Economic from the White House budget request fearof our patriotismbeing attacked. " Committee on Sept. 19, Federal Re­ for fiscal year 1991. The bill cuts $151 Hatfield called it a "non-binding, serve chairman Alan Greenspan told million from the Bush budget of $153 toothless piece of craftmanship. . . . legislators that the Persian Gulf crisis million for Germany, $43 million Why avoid our responsibilities?" Hat­ has piled "new and substantialrisks" on from the request of $44 million for field said that "The Senate Foreign an already faltering national economy. Italy, and $46 million from the budget Relations Committee hasn't even con­ "The oil shock has clearly in­ of $47 million for the United sidered the War Powers Resolution," creased both the probability of infla­ Kingdom. although when the act was passed, ev­ tion and recession," said Greenspan. The Senate legislation eliminates eryone was pledging furtively that The Fed chairman added that if crude totally the $83 million sought by the therewould be "no more Vietnams." oil prices average around $30 per bar­ administration for projects in South Some Republicans fear that if rel over the next year, the higher pric­ Korea and all $18 million for projects President Bush doesn't compromise es would likely lower economic in Japan. with Congress on the War Powers growth by a full percentage point over Act, the shaky "consensus" which has a year's time while boosting the infla­ been established with regard to the tion rate by up to 2%. Gulf operation will rapidly disinte­ The "beige book," a Federal Re­ grate. "There's kind of a loose con­ SDI and Stealth serve report on conditions in various sensus," commented Sen. William shot down in House parts of the country released the same Cohen (R-Me.), "but you can see it The House of Representatives voted day, noted that economic activity in start to frayon the edges. The longer on Sept. 19 to slash $2.4 billion from the Federal Reserve's 12 regions was this goes on, the more doubts that are President Bush's request for the Stra­ either expanding more slowly or actu­ going to be expressed: Is this really tegic Defense Initiative (SDI) and to ally declining. "Weakness is most ap­ blood for oil? You mean we don't halt production of the B-2 bomber. parent in the Northeastern and mid­ have a democracy in Kuwait? How Rep. William Dickinson (R- Atlantic districts," the report said.

EIR October 12, 1990 National 69 National News

... pression austerity . sibility is investigating the OSI for its han­ Former Maryland State Sen. Clarence dling of the Artukovic case and is investigat­ Mitchell said that when he was indicted, he ing claims that OSI deliberately withheld Top Freemason screened decided that since he was innocent he would evidence in the case of John Demjanjuk, go through the justice system and be exoner­ who was deported to Israel and is appealing GOP for LaRouche ties ated. "That approach," he said, "got me 15 a death sentence for allegedly being Treblin­ Gene Mungold, an officer of the George months in prison. " We cannot continue with ka's "Ivan the Terrible ." Washington Masonic National Memorial in this approach, he concluded. "We have to An OSI official says Reinhartz never Alexandria, Virginia, effectively the head­ fight politically. " challenged the accuracy of the charges dur­ quarters for Freemasonry in the United One woman described how her elderly ing the deportation hearings, but under the States, recently admitted that he had father, a Baton Rouge city councilman for rules of extradition used against Artukovic, screened potential candidates for the Repub­ 30 years, had been dragged from his home no one could testify to anything that contra­ lican Party to ensure there were no ties to in the middle of the night in his underwear, dicted the evidence supplied by the Yugo­ Lyndon LaRouche . sujected to a frameup, and sentenced to slavian govenunent nor attack the commu­ "I was chairman of the operations com­ eight years in prison when he was convicted nist YugoslaVian system of justice. mittee of the Republican Party in the state of embezzling $400. "The OS� told the Yugoslavs what evi­ of Virginia, working out of Fairfax . I super­ A city councilwoman from North Caro­ dence to use to extradite my father, then vised the investigation of every single candi­ lina explained that she was virtually the only assured that we could not challenge the evi­ date who tried to run for officeas a Republi­ representative from her state at the meeting, dence in any way," Artukovic's son said. can, to make sure that they had no affiliation because of the devastating frameups of state Historian Charles McAdams of the Uni­ whatsoeverwith Lyndon LaRouche," Mun­ legislators and other black elected officials. versity of Su Francisco, who was prevent­ gold said. One caucus member had prepared a list ed fromtestifying for Artukovic at his extra­ Mungold also said that "We do not allow of black elected officialsabove the level of dition hearing, said of the evidence, "It was Christianity in our lodge ...it 's too sec­ school board who are currently under indict­ absurd, ajoke. The crimes never happened. ment which is 15 typed pages long, not ...I'm part iJewish myself. The Holocaust tarian." ' Freemasons in Alexandria and including those now the subject of IRS in­ was a tremendous tragedy. But therewas no LaRouche's home in Leesburg, Virginia, vestigation. credible evi4ence against Artukovic .... stung by public criticism over the exposure None of the �tandards of justice used in the of gun-running ties of Judge Albert V. Bry­ U.S. were ap,plied." an Jr. , the judge who railroaded LaRouche Dr. Milan Bulanjic, a former Yugoslav to prison, held open houses on Sept. 29. diplomat who represented the Yugoslav Mungold denied that the open house was a govemment in the extradition and believes response to a leaflet distributed by the OSI exposed in Artukovic was a war criminal, has published LaRouche for Justice campaign. Artukovic case a book in Yugoslavia declaring the massa­ cres for which Artukovic was prosecuted The Department of Justice Officeof Special were inventiCilns. Investigations (OSI) extradited Andrija Ar­ OSI dire¢tor Neal Sher defends the ex­ tukovic to Yugoslavia based on fraudulent traditions , saying those who find fault are evidence, according to the OSl's consul­ anti-Semitic or have a personal interest. LaRouche rep addresses tant, the Sept. 24 Washington Times re­ ported. Black Caucus Foundation During World War II, Artukovic was for LaRouche spokeswoman Debra Freeman ad­ a time the interior minister of the Ustasha dressed a workshop on the targeting of black governmentin Croatia that cooperated with elected officialsat the meeting of the Congres­ the occupying Nazis. In 1986, Artukovic, Environmentalists did sional Black Caucus Foundation on Sept. 28. then living in Surfside, California, was ex­ more damage than Exxon Attendance, expected to be 150, was tradited to Yugoslavia where he was sen­ 1,000. Freeman described the judicial rail­ tenced to death. He died in 1988 at age 88 The damage done to Prince William Sound, road of Lyndon LaRouche. She challenged while awaiting execution. Alaska during the cleanup of the Exxon Val­ the audience to look at the situation of ha­ Dennis Reinhartz, a historian at the Uni­ dez oil spill was greater than the damage of rassment of blacks, trade union officials, versity of Texas at Arlington who was the the spill itself, according to a federal report. and a statesman such as LaRouche from a OSI's consultant in the case, said "he does "We think there are probably a number perspective that the powers behind the Bush not believe the chief piece of evidence of locations · where cleanup damage was administration needed to destroy all constit­ against Artukovic ." worse" than the spill, said John Robinson, uency leadership in order to implement de- The DoJ Officeof Professional Respon- hazardous materials response chief for the

70 National EIR October 12, 1990 • Brilifly

National Oceanic and Atmospheric Admin­ tled because of security problems. istration, scientific coordinator for the According to mercenaries and CIA con­ • CHESTER CROCKER, a pro­ cleanup effort. tract agents cited in the reports, the CIA and tege of Henry Kissinger who served Bulldozers and shovels were used to re­ its drug-laundering apparatus in Southeast as Reagan's Assistant Secretary of move acres of oil-coated beach surface, de­ Asia have been operationally involved in State for African Affairs from 1981 stroying shoreline plants and animals such scuttling rescue missions. to 1989, has joined the board of Mi­ as seaweed and mussels on which wildlife norco, the holding company of the survives, reported the Chicago Tribune. Harry Oppenheimer Anglo-Ameri­ Oily shorelines also were blasted with hot can mining interests. Crocker was the water and steam, killing aquatic organisms. architect of the Namibia settlement As a result, Robinson said, Alaska be­ Judge resigns over under which the mineral-rich former came a classic example of an "aggressive trust territory of South Africa became cleanup" in which oil was removed without sentencing guidelines independent this year and joined the consideration for the environmental cost be­ u.s. District Judge J. Irving Lawrence of British Commonwealth. cause of public outrage over the spill. San Diego, California announced his resig­ "There are places where recovery has been nation from the bench in late September, • THE U.N. CONVENTION on slowed down by the aggressiveness of the citing the federal reforms which have re­ the Rights of theChild has never been clean up," Robinson said. moved sentencing discretion from the bench ratifiedby the United States. One rea­ Exxon, which has spent$2 billion hiring and put it in the hands of prosecutors . son is that the convention prohibits over 11,000 workersto conduct the cleanup, The so-called reforms, which involved capital punishment for children, con­ is facing fivecriminal charges and over 215 imposing sentencing guidelines, are consid­ sidered anyone under 18, the Sept. other lawsuits reSUltingfrom the spill. ered unconstitutional by many in the legal 28 London Times reported. profession because they are designed to eliminate the concept of rehabilitation from • PRESIDENT BUSH is willing the legal system. to sacrifice30,00 0 American soldiers "It used to be that a judge could do some to "preserve our way of life," intelli­ good in sentencing, by being lenient when gence community and military Bush covers up reports lenience was called for," Irving said in refer­ sources report. Some 30,000 of POWs in Vietnam ence to his discretion prior to the new rules. deaths-more than 50% of the num­ "Now I can't do that. It tugs your heart ." ber that died in Vietnam-is the fig­ Reports assembled by CBS News "60 Mi­ ure for "acceptable losses" should the nutes" producer Monika Jensen-Stevenson Anglo-Americans engage Iraqi and her husband indicate that President forces. Bush is involved in a plot to cover up the existence of U.S. prisoners of war (pOWs) Nebraska jury indicts • CITRUS GROWERS in the in Vietnam, according to the Sept. 29 Lon­ U. S. are enraged over the impending don Financial Times. child abuse victim destruction of their industryunder the The reportson persistentallegations that A federal grand jury in Douglas County, Mexico free trade pact. Threatened the U.S. government is deliberately cov­ Nebraska indicted child abuse victim Alisha are 144,000 citrus industry jobs in eringup evidence that POWs are being held Owen on eight counts of perjury on Sept. Florida alone. in Southeast Asia includes information pre­ 26, as part of an escalating pattern of cov­ viously released by CIA official Gene Tighe erup of allegations of child abuse against • THE ANTI-DEFAMATION and Navy Admiral Tuttle, as well as stories prominent individuals in that state. League has brought a $120 million circulated by Ross Perot and Bo Gritz, all of Owen faces a potential 360 years behind civil RICO suit charging the Unifica­ whom say that the government has stymied bars as a result of the indictments, but she tion Church. Rev. Sun Myung efforts to pursue reliable evidence pointing has refused to recant her testimony against Moon, the Washington Times, the to the existence of POW s. leading members of the Nebraska political law firm of Schwalb, Donnenfeld, The Stevensons report that the Vietnam­ community. Bray & Silbert, the accounting firm ese governmenthas been rebuffed in its ef­ Miss Owen also has a paternity suit of Grant Thornton, and others, with forts to bargainfor the release of the prison­ against Robert Wadman, her accused abus­ conspiracy to destroy "the American ers and say that George Bush has been one er, the former Police Chief of Omaha. The political system in order to establish a of the leading members of the coverup. Ac­ paternity tests which were ordered by the worldwide government which would cording to the wife of one POW, Ronald court were returned negative. EIR had prohibit the separation of church and Reagan communicated that a mission to res­ warned that this would be the result unless state ." cue such prisoners was mounted and scut- extraordinary precautions were taken.

- EIR October 12, 1990 National 71 Editorial

Build a political anti-war movement

The student protests that erupted at the University of ty . Student demands includ� the resignation of the the District of Columbia and other American campuses entire Board of Trustees, scrapping of the pornography at the end of September, are the harbingers of a revolu­ purchase, improved basic education policies, longer tionary ferment potentially as powerful as that which library hours , and better student housing. led to the reunification of Germany in less than one This strike action on the issue of quality education short year. is particularly notable at a time when a study produced On July 4, 1989, in the forward to his campaign for the College Board has determined that it is the lack platform, Lyndon LaRouche, a candidate for Congress of study of geometry and mathematics on the secondary from Virginia's 10th Congressional District, forecast level which undermines the student's ability to succeed that "a new revolutionary upsurge will become an in­ in a university-and particularly so in the case of mi­

creasingly dominant feature and compelling force dur­ norities. Black and Hispanic studentsI who took at least ing the 1989- 1992 interval of crisis." It will sweep one year of high school geometry have vastly improved through Eurasia, Africa, and the Americas, he wrote , chances of getting into college and receiving a bache­ "reaching gale force inside our United States at some lor's degree , the study found . The College Board's point during the coming eighteen months." We are president, Donald M. Stewart, has issued a laudable now rapidly approaching that point, as growing public proposal for "serious considetation" of a national poli­ awareness of the catastrophic nature of the economic cy to ensure that all students take geometry in second­ crisis intersects the fear that President Bush's escapades ary school. in the Persian Gulf will lead to a new Vietnam War­ In terms of marginal expenditure , the $1.6 million or even worse. which the UDC's trustees propose to spend on a worth­ The current student demonstrations are still small, less piece of pornographic art, can do a certain amount but if used to build a political antiwar movement ad­ of good. The danger to security and public order lies in dressing these broader issues effectively, they will the threat of bringing another piece of filth of that type quickly reach the kind of "gale force" that LaRouche under university auspices, at that price, at these hard forecast. That will be not a moment too soon, if the times-that is an insult to humanity. United States and the world are to be saved from the This kind of student protest must now join the still otherwise certain disaster which the policies of the An­ modest anti-war protest internationally against the glo-American Establishment are bringing down upon prospect of a holocaust launched by the United States us . and Britain in the Middle East. On Sept. 27, students at the University of the Dis­ There must be a political anti-war movement trict of Columbia began a strike which, as we go to against this. We must not m�e the mistake that was press, was entering its ninth day . Three hundred strik­ made with Vietnam. We must not allow U.S. military ers have occupied the administration building, chaining engagement in the Middle Bast to run out of control themselves to the premises. The catalyst for this action before the protest mounts . We lost many lives, and was a decision by the Board of Trustees to spend $1.6 much more , in a war in Vietnam which was intended million--of federal and city taxpayers' money-to by Henry Kissinger and his friends to be a no-win war purchase for the campus a disgusting piece of porno­ from the beginning. graphic "art."Called "The Dinner Party ," it depicts a We do not wish to set off another Vietnam War. dining table with 39 place settings, each of which is We do not wish to set off World War III by starting a "decorated" with female genitalia. This, at a predomi­ brushfire in Iraq, which leads into a general nuclear nantly black commuter college, with an open admis­ conflict. We want a negotiated solution now , before it sions policy, intended to serve an inner city communi- is too late.

EIR October 12, 1990 National 72 'From the prison in which the politician's career expires, the influence THE CHICKEN LITTLE: of the statesman is raised toward the in need of extinction summits of his life's providential course. Since Solon, the Socratic method has become the mark of the great Western statesman. Wi thout the reemergence of that leadership, our imperiled civilization will not survive this century 's waning years.'

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