The American Renaissance has begun ... At the Schiller Institute! by Lyndon H. LaRouche, Jr.

Just as in the 15th century, In this work, publication is at the center of this Lyndon LaRouche, Renaissance. Here are some of economist, statesman, and political prisoner, our recent offerings. presents the means py which humanity may emerge into a new· Golden Renaissance Read them from the presently onrushing dark age of economic, moral and Toin the and cultural collapse. Includes In Defense of Renaissance! Common Sense, Project A, and The Science of Christian Economy. $15 retail.

Three volumes of new translations by Schiller Institute members by Amelia Platts Boynton Robinson

Selections include: "An inspiring, eloquent William Tell memoir of her more than Don Carlos, Infante of five decades on the front Spain lines ... I wholeheartedly The Virgin of Orleans recommend it to On Naive and everyone who cares Sentimental Poetry about human rights in On Grace and Dignity America." The "Aesthetical Letters -Coretta Scott King The Ghost Seer For her courage and Ballads and Poetry leadership over 50 years Vol. 1: $9.95 retail. in the civil rights move­ Vol. 2: $15.00 retail. ment, Amelia Robinson Vol. 3: $15.00 retail. was awarded the Martin Luther King, Jr. Foundation Freedom Medal in 1990. This is the story of her life. To Order Ben Franklin $10 retail. Booksellers Shipping: Pre-Publication Notice ------, - mail' A Manual on the Rudiments of 107 S. King St. $1.75 first book .75 ea add'l book Thning and Registration Leesburg, V,'A 22075 -UPS Vol. 1: Introduction and The Human Singing Voice ph.: (703) 777-3661 $3.00 first book fax: (703) 771-9492 1.00 ea add'l book This book is designed to create a new generation of Beethovens-watch this magazine for news of its arrival! Visa and Mastercard accepted Founder and Contributing Editor: Lyndon H. LaRouche, Ir. Editor: Nora Hamerman Managing Editors: lohn Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papen, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, T he photo on the cover shows American troops in a rehearsal for Webster Tarpley, Carol White, Christopher White warfare in a chemically contaminated zone of the Saudi Arabian Science and Technology: Carol Whitt desert, during the buildup for the second of the "splendid little coloni­ Special Services: Richard Freeman al wars" that George Bush carried out for the Bntish after he took Book Editor: Katherine Notley Advertising Director: Marsha Freeman office in January 1989. In reality, most of those who die in the next Circulation Manager: Stanley Ezrol phase will not be Americans, but the unlucky peoples of the Balkans, INTELUGENCE DIRECTORS: the Transcaucasian republics of the former Soviet Union, the Persian Agriculture: Marcia Merry Asia: Linda de Hoyos Gulf, and among the Palestinian diaspora-for starters. But the im­ Counterintelligence: leffrey Steinberg, age of senseless and unnecessary death, relates to a very real threat. Paul Goldstein Economics: Christopher White The lead stories in our three news sections give the picture. In European Economics: William Engdahl National, Thera-America: Robyn QUijano, Dennis Small we analyze the leaked Pentagon strategy document which Medicine: lohn Grauerholz, M.D. outlines a U.S. "defense" policy which is precisely that of imperial Russia and Eastern Europe: Rachel Douglas, Konstantin George Rome. (Don't forget that the Romans, too, pretended that their con­ Special Projects: Mark Burdman quests were required to resist evil regimes. St. Augustine, in the era United States: Kathleen Klenetsky of the collapse of the Roman System, pointed out that even if true, INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura this merely proves that the root of all empires is evil!) In Internation­ Bogota: lose Restrepo ai, we sketch the actions on the ground in the Mideast which show Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen how this policy is being put into effect-fomenting wars and then Houston: Harley Schlanger "managing" them by international policing. In Economics, we look Lima: Sara Madueno Mexico City: Hugo LOpez Ochoa at the results of the "shock therapy" imposed on the former Soviet Milan: Leonardo Servadio domains, where instability could soon dwarf the present Middle New Delhi: Susan Maitra Paris: Christine Bierre Eastern crisis. Rio de Janeiro: Silvia Palacios Behind all this, as Lyndon LaRouche stressed in his response to Stockholm: Michael Ericson Washington, D.C.: William lones a question by European economics editor William Engdahl (page 8), Wiesbaden: Garan Haglund is the Anglo-Americans' political commitment to a "scorched earth" policy of destruction. There can be no solutions to the crisis, any­ EIR (ISSN 0886-{1947) is published weekly (50 issues) except for the first week ofApril, and the last week of where in the world, that do not start with political opposition to that December by EIR News Service Inc., 333Jh Pennsylvania Ave., S.E., 2nd Floor, Washington, DC policy. There is a lesson here for the revolutionary uprisings in South 20003. (202) 544-70/0. EIII"OfI"" H,adqUlJl1err: Executive Intelligence Review America (see page 40), picking up on the ferment that began in Nachrichtenagentur GmbH, Postfach 2308, Dotzbeimentrasse 166, 0-6200 Wiesbaden, Federal central Europe. Republic of Gennany Tel: (0611) 8840. Executive Directors: Anno Hellenbroich, In the Feature, Carol White reports on Japanese breakthroughs Michael Liebig in cold fusion, which have been blacked out of the U. S. media, even In De""""": EIR, Post Box 26\3, 2100 Copenhagen 0E, Te\. 35-43 60 40 the "science" media. These results give grounds for optimism, for In Mexic6: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. solutions to the real problems of energy and environment facing JapfUI .ubscription .ak.: O. T. O. Research Corporation, mankind. Scientific optimism is what the British most fear. If you Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. doubt it-read the Queen of England's speech on page 49. Copyright IC 1992 EIR News Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic SUbscriptions: 3 months-S125, 6 months-$225, I year-$396, Single issuo-$1O Postmaster: Send all address changes to ElR, P.O. Box 17390, Washington, D.C. 20041-0390. TIillContents

Interviews Departments Economics

8 Lyndon LaRouche 22 Dateline Mexico 4 Bush feared to have a chaos The imprisoned contender for the World Bank orders legal abortions. scenario for Russia Democratic presidential nomination With the latest round of price rises replies to a question about the 23 Report from Rio decreed by Boris Yeltsin under emergency reconstruction of the Brazil yields to the bankers, again. orders of the International economy in Ukraine-and Monetary Fund, even the pockets of elsewhere. 54 Andean Report relative stability among the Peru's terrorists invade Mexico. Community of Independent States are now facing an economic and social explosion. Book Reviews 55 Panama Report Noriega's revenge? 44 Argentine nationalism 6 East Germany faces massive unemployment panics Anglo-Americans 72 Editorial The Invention of Argentina, by Community of nations must Nicolas Shumway. prevail. 8 Reconstructing Ukraine requires recognition of the enemy Photo Credits: Cover, U.S. Army. An interview with Lyndon Page 9, Ogonyok. Page 27, LaRouche. University of Utah; Dr. Akito Takahashi. Page 49, Stuart K. 10 Currency Rates Lewis. 11 The IMF -World Bank at work in Africa The journal Jeune Afrique exposes the fraud of the World Bank's "liberal credo."

15 Preventable diseases turning into kiUers

17 BCCI plea bargain: an asset grab by U.S. banking system

19 Banking Crisis at Olympia & York.

20 Unemployment Coverup

21 Agriculture Bandwagon rolls for "tree power."

24 Business Briefs Volume 19, Number12, March 20,1992

; .

Feature International National

26 Japan achieves big 58 Pentagon I. plan for breakthroughs in cold U.S. world dictatorship fusion The new classified planning A report by Carol White on a document calls for the United States conference of the Japan Society of to "discourage" potential Applied Electromagnetics in competitors "from challenging our Nagoya, Japan. As the results leadership or seeking to overturn achieved by Dr. Akito Takahashi the established political and are replicated in laboratories around economic order." More blunt than

the world, there is hope that it will During Desert Shield and Desert Stonn. American that, you cannot get. soon no longer be possible for the troops were deployed for British aims. enemies of cold fusion to suppress 60 LaRouche maps out this extraordinary new science. 38 Will Anglo-Americans or industrial recovery Israel strike Iraq first? In the second paid half-hour 28 Some issues of the accident New rivers of blood flowing in Iraq television spot of 1992. at SRI or in the Transcaucasus this spring or summer are not simply a Bush 61 LaRouche eampaign 36 Proceedings of Como re-election tactic. reports intense voter conference released response to TV address 40 Pots and pans could bring A spokesman for Democrats for down the IMF Economic Recovery describes the Venezuela's President must resign, letters to the candidate. or face another coup. 63 Ibero-Americans decry 41 U.S. targets Peru's Armed U.S. rights abuse Forces in bid to install a 'narco-democracy' 64 Auto layofl!s create hot 43 Argentina agrees to halt political climate high technology 65 Oliver North's 46 The 'Italian face' of JFK: 'Confederates' still from Permindex to the targeting Contra opponents Moro murder 67 Elephants ind Donkeys 48 Italy's elections: Will the "Front-runners" see more troubles Trilateral Commission's ahead. dream come true? 68 Congressiooal Closeup 49 Green Queen supports Earth Summit 70 National News

51 Indonesia: 'Lusitania Expresso' provocation defused

52 Chinese develop strategy for 'new world disorder'

56 International Intelligence �TIillEconomics

Bush feared to have a chaos scenario for Russia

by William Engdahl

Overthe weekend of March7, the Russian govemment of Boris when the winter heating season ends, will rise from R 350 Yeltsin fonnalized the final part of its "price shock" economic at present to as much as R 2,500 per ton, a whopping sev­ policy, by freeing from state regulation prices on bread, milk, enfold rise. sugar, and evenoil and gas. The controversial move was taken Further, as part of the IMF austerity "reform" demands, in consultation with a senior delegation from the International worked out in recent weeks in consultation with Harvard's Monetary Fund (IMF), which had been in Moscow for the "shock therapy" advocate Jeffrey Sachs and Swedish econo­ previous three weeks monitoring the ''progress'' of the Russian mist and Sachs business partner Anders Aslund, credit is economic reform since economics czar Yegor Gaidar imposed being choked at the source. The result, by governmentadmis­ the firstphase of the price float on Jan. 2. sion, has been an increase of CentralBa nk interest rates from The latest action escalates an economic and social crisis 2% in 1991 to 20% today. The rate commercial banks may to unheard-of dimensions, and threatens even the quasi-sta­ set has also been set free . The result, as Russian economist bility of neighboring CIS states such as Ukraine, who are Shmelev noted at a recent forum in Davos, Switzerland, has forced to follow Russia's price policy, as rubles printed by been a "confiscation of private savings by the government Moscow remain their only currency. beyond anything Stalin would have dared." The Russian government's statement of intent is con­ In addition, under Gaidar the government has removed tained in the March 4 Memorandum on Economic Policy, all restrictions on exports with exception for the moment of which formed the basis of what the International Monetary oil and gas. One result, according to Scandinavian business­ Fund calls a "shadow agreement" between Russia and the men, is that ships from Sweden, Norway, and other Western IMF. In detail, it amounts to the patient's agreement to com­ ports have gone empty to Russia in recent weeks, loaded only mit systematic economic suicide, in return foran indication with dollar currency, returning full of Russian timber and from IMF officials that they will grant Russia the green light other products which the desperate Russian exporters are for accelerated IMF full membership at the coming April reportedly selling at prices so low that the Scandinavian trad­ meeting of the IMF Interim Committee in Washington. ers cannot believe it. All this "reform" has been done in the desperate hope and Terms of memorandum vague promise from Sachs and others that the IMF will come The details of the March 4 agreement are draconian to in with billions of dollars in bridge loans, stand-by credits, the extreme. Following two months of free floatin prices for and other emergency hard-currency stabilization funds, crucial commodity and other goods, which raised prices by which would then, so goes the argument, open the floodgates 10-12 times their December levels, according to Russian to the billions of dollars in western capital eager to invest in eyewitness estimates, now as of March 31, prices for such the new Russia. vital items as bread and sugar will be allowed to rise without But there is something horribly wrong in this entire sce­ limit. The price of oil and gas inside Russia, as of April 20 nario.

4 Economics EIR March 20, 1992 No money fr om the IMF to rebuild Russia's economy. Even assuming, as Russia appears willing to do, that she The study, prepared by Morgan 'Stanley's Director of continues rigid adherence to the IMF shock therapy program, Global Strategy David Roche for a special British television in all likelihood there will not be any IMF money for a broadcast on the Russian economy, projects total unemploy­ compliant Russia for the foreseeable future . ment in Russia under the present price shock policy will In May 1990, the IMF Interim Committee adopted a exceed 40 million by the end of this decade, if not before. proposal for an increase of the IMF membership quota, on Further, unless western aid is "massively increased, Russia which basis the IMF is allowed to extend emergency and could collapse by early autumn." other loans to member states, of an added 50%. The U.S. The Morgan Stanley analysis ofthe problems inherentin share of this quota increase is to be $12 billion additional the present Sachs and IMF Russian "reform" is correctso far contribution to the IMF. But Washington is the only major as it goes: "Liberal economic reform, while a necessarypart capital which has yet to approve the IMF funding increase. of the demolition job on the old system, does not put a new Under IMF rules proposed by Washington, unless 85% of one in its place rapidly enough. Liberal reform alone will not the total voting shares of IMF members agree to the new create jobs, wealth and stability within a politically feasible quotas, the quotas stay at the old levels. The United States time frame, so massive infrastructureinvestment funded by has the largest IMP voting quota, 19%, enough to block the the West is needed." new funds. And the Bush administration to date has refused Roche proceeds to outline parameters of essential infra­ to wage an active campaign for the new quota, while the structure investment over a 5-15 year period from western U.S. Congress has refused to vote billions for the IMP when governments and private companies. To modernize and in­ jobs aredisappearing at home. crease oil and gas production requires fully $25-45 billion a This ensures no approval for the new IMF funding until, year for 15 years; modernizationof Soviet agriculture another at the very earliest, the end of 1992-nine months from $5-10 billion a year for 15 years; $15-30 billion annually to now-or even well into 1993. Without new money the IMF re-train and support the estimated 40 million jobless fromthe will soon run out of fundsand will not be able to extend more collapse of the old order. Further, he estimates an added $15- than a token to Russia. Moreover, Washington's refusal is 20 billion a year to upgrade the dilapidated infrastructure blocking an increase in funds for the World Bank which also of ports, telecommunications, rails, roads, and airports. In could be used in Russia. short, the West must start providing $76- 167 billion annually In an unusually critical speech delivered in Washington if the Russian reform is to not explode into social chaos. March 11, formerPresident Richard Nixon accused the admin­ But, says Roche, "current market wisdom in the West istration of playing a "penny-ante game" regarding Russia, argues that the market dictates all .. ..Nothing could be less which risks losing all the gains of the past years in eastern sure. " He points to a "direct contradiction between extremely Europefor possibly a half-century or more. Nixon noted that so long-term, high-risk allocation of resources to the former far, Bush's oillyassistance to the strugglingYeltsin govemment Soviet Union which will be needed to create a mixed econo­ was thathe gave some "agricultural credits, held a photo-oppor­ my , and the short-term horizon of current westerneconomic , tunity international conference of 57 foreign secretaries, sent and much of Anglo-Saxon business thinking." Given the 60cargo planes of leftover food fromthe Gulf war, and prom­ growing instability inside Russia and the CIS states of the ised 200 Peace Corps volunteers. This would be a generous former Soviet Union, rather than a significant increase of action ifthe target of the aid were a small country like Burkina western private capital investment into Russia, Roche notes Faso, but represents mere tokenism when applied to Russia, a that "the contribution of the western private sector to CIS nationof almost200 million." Nixon notes that the hot political reform is, if anything, on the wane." issue of the 1950s was "who lost China." He says, "If Mr. What, then, is the realistic prospect according to the Wall Yeltsin goesdown, the question, 'who lost Russia?' will be an Street firm? "Failure of reform in the former Soviet Union infinitely moredevastating issue." would not leave the West as economically unscathed as the But to date there is every indication that just such a course Gulf and Yugoslav wars have," Roche insists. He documents is unstated Washington administration policy. And not be­ the fact that western Europe, notably Germany and Austria, cause of U.S. budget restraints, as Mr. Bush claims. depend for 50% and 91% respectively on imported natural gas delivered by pipeline fromRussia via Ukraine. ''Trouble A Morgan Stanley warning between the Ukraine and Russia could sever western and In a detailed study just issued, the London arm of the easternEurope 's gas artery." Unlike the loss of Russian crude influential New York investment firm, Morgan Stanley, oil, a mere 2-3% of European oil supply, and easily replace­ paints a sobering and in most respects accurate critique of able elsewhere, there is no ready alteIl1ativefor Russian natu­ Washington's present backing for Sachs's "shock therapy" ral gas for much of German and other European industry and for Russia, while doing everything in its power to prevent heating needs. large aid commitments from Japan or western Europe going Full economic chaos in the CIS; Morgan Stanley con-

EIR March 20, 1992 Economics 5 cludes, would "severely damage business prospects by un­ dermining confidenceparticularly in western Europe." Con­ sequences of that, Roche warns, would be a "flightof capital, higher interest rates (as political risk premiums are built into the cost of money) and deeper recessions. Western Europe would risk a swing to the xenophobic right as the small East Germanyfaces man feels the pinch of recession and immigrant labor. The consequences could be that Europe becomes less rationally governed, with serious implications for European integration massive unemployment and Europe's global stature and competitiveness." by Rainer Apel Roche, noting the current economic problems besetting leading western economies, predicts the necessary western aid won't come in time to prevent anarchy and some return to a form "Wherever the Treuhand is active, it buries our labor power. " of dictatorialregime. It should benoted thatMorgan Stanley has These words, in somewhat crude German, appeared on one been among the leading American investment houses consis­ of the protest banners carried on March 4 by over 3,000 tently arguing since 1989 against German economic prospects shipyard workers who came to demonstrate in front of the andin favor of the dollaras "safe haven" against what it predicted parliament building in Schwerin, the capital of Mecklenburg would be chaos in eastern Europe. The firm is believed to have in northeastGerma ny. very close ties to Washington policy circles. The serious economic crisis which has befallen the ship­ yards in eastern Germany, and which has led to a deep crisis Kissinger 'explains' of confidencebetween workers and politicians of all parties, All of this begins to make more sense, in its perverse way, is only the most visible expression of a dramatic worsening of when seen from the point of view expressed by influential the situation in the formerly state-owned industrial concerns Washington foreign policy "gray eminence" Henry Kissing­ which were handed over to the Treuhandanstalt (THA) fol­ er. In a commentary published in the March 1 German Welt lowing German reunificationin July 1990. Out of the former­ am Sonntag, Kissinger warns, "So long as the two Germanys ly 7 million workers active in the volkseigene Betrieben were divided, Germany's growing economic and military ("people's factories") which were taken over by the THA strength" did not upset the balance of power in Europe. "The that summer, only about one-half are still working there. And so-called French leadership of the EC was the result of of those remaining, only about 500,000 of them could draw Bonn's abstinence from the challenges of power politics. A benefit from the emergency short-work regulations adopted reunified Germany no longer needs French sanction to con­ in 1990 to help the new German states, but which ran out at firm she is a 'good European.' East Europe and the former the end of last year. Soviet Union depend on the German economy." The expiration of these regulations had been set for Dec. But, argues Kissinger, "Germany has now become so 31, 1991, in expectation of a rapid economic upswing in strongthat the existing European institutions alone no longer eastern Germany; but even the upswing did not materialize, are able to maintain the balance between Germany and her negotiations in mid-February between the federal and state partners, and even less so between Germany and the former governmentsdid not result in anyextension . And so now it is Soviet Union. . . . But if both powers were to make closer up to the THA itself to come up with the short-work payments ties, there would be the danger of their hegemony. . . . With­ which were previously being paid by the Federal Labor Of­ out America, Britain and France are not in a position to fice in Nuremberg. But since the THA does not have these guarantee the political balance of power in Europe; Germany funds, it is expected that the great majority of these 500,000 then would have no anchor to counter possible nationalistic workers will be laid off during the weeks ahead. And it can ambitions or possible externalpressur es." also be expected that unemployment in easternGermany will In this twisted revival of the failed 19th-century British rise from its current 17%, to 25% or more. balance of power politics that were responsible for World Wars I and II, Kissinger reveals the real reason for Washing­ Large-scale industry dismantled ton's current policy of sending Harvard professors to unleash The THA will therefore finally accomplish what it had economic chaos in Russia and easternEurope while blocking been seeking even while the short-work relief was still in any significantwestern intervention to alter the chaos. Wash­ effect: an average reduction in employment by one-fifth to ington apparently calculates it can only gain from the chaos one-tenth. One example of this is the SEKT corporation in unleashed across Europe in coming months. The "econom­ Magdeburg, which once had 11,000 employees but now ics" of George Bush and Henry Kissinger, sadly, are little barely employs 5,000, some 4,000 of whom are going on different from those of Castlereagh and Lord Palmers ton at short-work this April. Eastern Germany's shipbuilding in­ the beginning of the 1800s. dustry, which before the fall of the Berlin Wall employed

6 Economics EIR March 20, 1992 55,000 workers, today employs only 20,000,and if the THA plants, equipment, and land into risky operations on the inter­ has its way, one-half of those should get the boot. The micro­ national money markets, in order 110 get enough money to electronics industry, which once employed 21 ,500, now em­ cover these old debts . Thus, for instance, the $1.3 billion ploys 4,500, and only 1 ,500 of those are to ultimately remain. proceeds from the sales of 28 Inte:rhotels to the Klingbeil And the textile industry in eastern Saxony, which once occu­ Group could have gone for new capital investment, but in­ pied 140,000 workers , will be shrunk down to a little over stead was reportedly frittered away on reducing this old pile 12,000workers . of debt. Two especially drastic examples show the actual result of the THA' s much-trumpeted strategy of "maintaining current What should the Treuhand do? industrial areas" during the privatization process: The Rohwedder's unimplemented proposal for a thoroughgo­ Wolfen filmfactory , where 17,000people once worked, now ing reworking of the Treuhand' s mandate, putting the empha­ has only 850 workers left; and the Riesa steel works, which sis on rationalization instead of mere privatization, could had 12,000 workers in 1989, was bought up by a Swiss firm perhaps have altered the THA' s policies to such a degree that and now employs 144 workers-not in producing steel, but current disruptions in eastern GermlUlY's labor market could in manufacturing radiators. By 1995, the number of workers have been minimized. But the most important part of any at the Riesa works is supposed to grow to 1 ,500-Le., to reform must come fromBonn . So long as the federal govern­ about one-eighth of its former work force. ment's financial and credit policy is,not guided by principles Reductions in the industrial labor force on this scale of national economy, and instead relies on a regimen of high haven't been experienced in Germany since the world eco­ interest rates, the money will never be brought together for nomic crisis of 1929-31, or since the Allied victors' policy of reconstructing the five eastern German states. Even if the dismantling German industry immediately following World THA were entirely free of indebtedness, the federal budget War II. But as far as the THA's boss Birgit Breuel is con­ would continue to impose heavy burdenson westernGerman cerned, all is in order. Speaking in Hanover on the same day taxpayers for years to come, because of high interest rates the shipyard workers in Rostock had decided to bring their and low tax revenues from the eastern states. One remedy protest to Schwerin, Breuel remarked that the former German would be to form a new national holding company, or to set Democratic Republic was "over-industrialized," anyway. up various types of employment corporations for the problem But agriculture has been equally hard-hit since the THA took industries of former East Germany. One could also provide over ownership of the former communist collective farms: the THA with an additional $6.5-13 billion in credit per year Of the 800,000 people working on the land, only about in order to get rationalization me�sures going on a grand 230,000 are left. scale, as has just been proposed by Hermann Rappe, a repre­ sentative of the IG Chemie trade union who sits on the THA' s A miniature IMF advisory council. The Treuhandanstalt naturally deserves all the attacks it And yet, if the-financial policies currently practiced by gets because of its rabid policy of dismantling industry. But Waigel and Germany's central b�, the Bundesbank, re­ this should not divert attention from the main guilty party, main unaltered, even such well-meaning proposals from the federal Finance Minister Theodor Waigel. Back in early trade union side, aimed at easing the worst bottlenecks, will 1990, before its director Detlev Rohwedder was killed in fail to bring about the desperately needed economic upswing April by a bloody terrorist attack, the THA could have chart­ in easternGermany . It would be as if a huge vacuum cleaner ed a different course. Had the THA been relieved of the were to go through the countryside. sucking up every newly former East German communist regime's state debt back in planted seedling. July 1990, or at the latest following the reunification of the But let us assume that there is a successful, fundamental two German states in October 1990, the THA would have reform of the policies of the Bundesbank and the Finance had considerably more maneuvering room, and would not Ministry . The next step would be to form a special Recon­ have had to adopt as its chief goal, the task of privatizing as struction Ministry, which would cQIlsolidate all the relevant rapidly as possible in order to help fill the hole in Waigel's activities currently going on in the other ministries, and budget. which, via the THA, would become the executive impulse It wasn't simply its privatization policy, and its selling for carrying out the priority task of productive investment. of assets at the best possible price with the smallest possible The task of this new ministry would be to put into motion, loss, but rather its so-called "debt management" operations and to provide long-term state guarantees for, sensible great which brought the THA to rub shoulders in Bahamas foreign projects in transportation infrastructure (the Transrapid mag­ exchange firmsor other dubious high-interest markets. Unbe­ netically levitated train, the ICE t,.igh-speed train, canals, knownst to the general public, a special department of the highways, airports), new power plants, and the construction THA is exclusively devoted to finding best way to invest its of both large-scale and medium-sized industry in eastern own sparse financial assets and its proceeds from sales of Germany.

EIR March 20, 1992 Economics 7 Interview: Lyndon LaRouche

Reconstructing Ukraine requires recognition of the enemy

The fo llowing exchange between EIR' s William Engdahl and fore the following comment is required. Democratic presidential candidate Lyndon LaRouche took There are no measures which can be proposed as work­ place on March 8. able under these circumstances except as· such proposals are subsumed features of a consciously uttered political concep­ EIR: In recent discussions with Ukrainians about the crisis tion; by "political," I mean not only something shared among in their country , they said, yes, it's vital to talk about substan­ an inner circle, but something spread among the population, tial infrastructure projects along the lines of Mr. LaRouche's at least in significant part. But the concept which must be "Productive Tria.!lgle" program, but we face a situation had-otherwise, nothing exists which could work: What is where, at the present rate , we may not make it as an integral, happening in continental Europe and in eastern Europe, the functioning economy for two, three, or four months longer. former Warsaw Pact nations, in the former Yugoslavia, and They pointed out that, since Jan. 2, the Gaidar price in the CIS nations today, is primarily controlled, in terms of shock has devastated the fragile stability of the Ukrainian western policy-which means International Monetary Fund economy, which at the time was considerably healthier than [lMF] policy-by geopolitical thinking in which the concern that of Russia. It has forced Ukraine into similar steps, simply of the British and their American partners , today, is as before because the ruble is the currency of the Ukrainian as well as World War I and II-the firstdirectly caused by the British, the Russian economy (the Russians have used this as eco­ the second caused as an outgrowth of the Anglo-American nomic blackmail on the terms of trade), and it is devastating policies' of the 1920s and 1930s, the Versailles policies. Ukraine . This was before Yeltsin this morning announced They're doing the same thing again. the free float of bread, milk, and sugar prices, which will Remember, the essence of this matter is expressed by the worsen the situation. case of Czar Alexander II's armed neutrality alliance, in And a nasty phase-two is going into effect, which Anders effect, with Lincoln, with the cause of the American defense Aslund of the Stockholm School of Business, a friend of against the British puppet, the Confederacy, and the reaching "shock therapy" advocate Jeffrey Sachs, has indicated is a out from Moscow toward economic cooperation with Berlin credit rationing by the Russian government of rubles to busi­ and Paris, particularly on the railroad question. The issue nesses in Russia, and that will mean a shortage of rubles in being the development impulse, as characterized by, particu­ Ukraine . larly, Count Sergei Witte, not Stolypin, but Count Sergei It's being hailed by Sachs and Aslund as the cure for the Witte, for Eurasian economic development, including the hyperinflation, but the effect on Ukraine is an acceleration implicit liberation of China from the British imperial regime. of the chaos, unemployment, and disorder. The second issue, which is related to that, is the fear by They also pointed out that American advisers are de­ the Anglo-Americans that the nations of eastern Europe and laying the production of a Ukrainian national currency, the CIS would align themselves in a common cause with the which should have been introduced six months ago. The net nations of South America, Africa, and southern Asia for a effect is that Ukraine has no national currency notes to put new global economic order based on the right of all nations into circulation to insulate themselves from these ruble-in­ to economic development, technological progress, and so duced shocks. forth . They asked, what do we do immediately, today? What would you suggest? A 'scorched earth' policy LaRouche: There are , of course, a panoply of optional mea­ This is what the Anglo-Americans fear. So therefore , sures along Listian lines which can be taken by a group, a what they are doing is not mismanaging assistance to eastern concert of nations from the region of the former Warsaw Pact Europe and the CIS nations. The British are determined to members and the Community of Independent States (CIS). destroy, to bring to absolute ruins, to a virtual economic This will intersect the Russian internal situation, and there- scorched-earth condition, each and all of the nations of east-

8 Economics EIR March 20, 1992 Women shof their rations coupons to buy food in Russia in 1991. Today undef free floating prices, the situation is even more chaotic and affects other republics like Ukraine.

em Europe and of the present CIS, former Soviet, states and ment of that policy. regions. That is the Anglo-American purpose! The IMF is At the same time, as we see in the self-destruction of the the leading instrument for implementing that policy. The Anglo-American economies by a sim lar policy, this ideolo­ recommendations, which are so warmly received as assis­ gy, this kind of free trade policy, has tiecomean internal part tance by certain quarters in easternEurope and Moscow, are of the belief structure and behavior of the leading institutions not assistance, but they are absolute malice, Anglo-American of Great Britain and North America. Thus, when they go malice, against the peoples and nations of each and all of into eastern Europe, they go instinctively for this kind of these states. operation , at the same time that the recognize, when they This has two aspects. On one side, it is a stated policy of apply it to foreign countries, if not to their own, that this is a the Anglo-American policymakers and their running dogs in way of destroying Eurasian and developing nations-each . the U.N., the IMF, and other institutions, as well as in the and all. CIA (for example, this has been openly stated by William These people must be viewed as more malicious than Webster, William Colby, and others). Adolf Hitler and the Nazis. Once that is understood, and once the system that we might call the Listian system is Economic fascism as 'free trade' adopted as the counterpole to this-as for example, writers On the other hand, this is an instinctive response. Let me such as Mathew Carey made clear in his book called The make a distinction between the two. First of all , there is a Olive Branch in the second decade of the 19th century­ geopolitical policy. We 're dealing with the fag end of the then the appropriate measures would tend to be adopted and Versailles system as that system was reformed at Yalta and supported successfully. so forth , at the end of World War II. The Versailles system Without that understanding, appropriate measures proba­ is based on nothing but the axiomatics of the Halford Mac­ bly would not be adopted, and if adopted, would not work. kinder geopolitical doctrine of crushing the heartland of Eur­ So there is no administrative scheme ' hich might be sneaked asia and crushing what we call today the developing regions in which would either be successfully imposed or, if success­ of the planet, the former colonial regions, and to maintain a fully imposed, work, unless it starts from this adversarial system of Anglo-American domination over the planet in conception that the Anglo-Americans are the enemies of the which relations within Eurasia and within the various parts human race, and it is a defense agai�st these enemies' will of South and Central America are managed internally by to destroy-not only their will, but heir want, that is, they balance of power techniques, in which the entire world is are not only willfully destroying, but the characteristics of subjected to a system of economic fascism under the guise their belief and behavior impel themlto destroy, even if they and label of "free trade." were not intending to do so, that is, i the kind of suggestions So the system is both acting, consciously using the poli­ they could make, generally. cies such as those of Sachs and the IMF, for the deliberate Now, the constraint which the Anglo-Americans fear­ purpose of wrecking, destroying the potential of the states of that is, those who are more prudent than others-is that some eastern Europe and the CIS to ever become viable states in of them will say, yes, if we push Y 6ltsin successfully to do the foreseeable future , and they're using the free trade policy, what he's doing, with Gaidar and Jo forth , then what will the so-called Sachs policy and related policies, as an instru- happen is, the Russian people them�elves will scream. And

EIR March 20, 1992 Economics 9 under these circumstances, what was formerly the Red Army, the Russian part of it, will come, out of its ideology, Currency Rates its deeply embedded cultural impulses, to the rescue of the Russian people. Under those terms you would have, of The dollar in deutschemarks course, a dictatorship, which would, in a mechanistic but New York late afternoonfixing forceful way, do what it could to prevent the chaos and starvation of the Russian people. 1.80 We know what that would mean, within the area which was formerly the Soviet Union; and we know the radiating 1.70 impact of that upon eastern Europe. - Now, for various reasons, it should be obvious, even 1.60 - l..-""'" � the saner minds among those ideologues who believe in the .... V westernAnglo-American geopolitical view would view these 1.SO measures presently taken by the IMF, Sachs, and so forth, as insane, for practical reasons, not moral ones. 1.40 So that's the nature of the situation which we're dealing 1/22 1/29 215 212 2119 2/26 3/4 3111 with. The dollar in yen New York late afternoonfixing How to approach short-term needs Measures can always be taken to match productive re­ 1IiO sources with needs, particularly essential needs. The first principle: There must be no significant unemployment. An 1 !ill unemployed person is a person who could produce. This 140 works especially if we can have cooperation among relevant nations to share the benefitof their scant resources, to make DO sure there is no suffering, and to proceed upon that foundation to build something which can be the starting point for real 120 I-" growth. 1/22 1/29 215 212 2119 2/26 3/4 3111 So, I think what we're dealing with is not a question of The British pound in dollars finding something immediately to solve the problem, al­ New York late afternoon fixing though there are immediate solutions that are required . What is required is a political conception of what the real strategic 1.90 issue is globally: How to save these parts of the world at the time that the Anglo-American economies are collapsing 1.80 � internally. I...... -- That strategic outlook subsumes the immediate action, 1.70 � as opposed to the long-term action. The danger in this situa­ tion is that the immediacy of certain cruel needs is so great, 1.60 that one falls into the trap of opposing, or seeing long-term 1.50 and medium-term requirements and objectives as in conflict 1122 215 212 with short-term urgency. Once we accept the idea that short­ 1/29 2119 2126 3/4 3111 term urgency or expediency must push aside medium-term The dollar in Swiss francs to long-term considerations, we're making the same mistake New York late afternoonfixing that stupid jerks like Sachs are making, we're falling into a similar kind of error. That we must never do. 1.60 The solution is a political conception of where we must go. And therefore, in order for us to survive to where we must 1.50 .... j,. ,.... r-- go, we are taking the following measuresfor the purpose of - .- 1.40 - .... � / getting to the medium-term and long-term building process. -

We must not make a dichotomy between the short-term 1.30 urgencies on the one side, and the medium- and long-term goals on the other. We must integrate them under a unified 1.20 political conception of who is doing what to whom, and what 1122 1/29 215 212 2119 2126 3/4 3111 our objectives are .

10 Economics EIR March 20, 1992 The IMF-World Bank at W"ork in Mrica

The 1980s were a disasterfor Africa, according to the '�nnual Reporton the State qfAfrica" by thejoumal Jeune Afrique. ChristineBierre reports.

The statistics are rolling in the bad results. The continent of generalization of primary education; and universal basic Africa is in full devolution: 13 countries today are poorer health care. Reflectingthis "social concern," it even proposes than they were when they were at the outset of colonization; to set aside double the social developmentfunds than before: 6 countries formerly classed among those with average in­ 8-10% of GDP as against 4-5% in the past, and to not touch comes have just been downgraded to the rank of lowest­ public expenses earmarked for basic social services during income countries. The average standard of living of Africans the phases of greatest austerity. has dropped 1 % each year between 1980 and 1987. From Where will these funds come from to achieve this plan, the standpoint of food, one out of five is undernourished, which purports to be able to double:Africa's annual growth according to the criteria of the World Health Organization. rates up to 4-5%, and to dedicate 6% ofthe GDP to infrastruc­ Epidemics are spreading like brush fires . Without even con­ ture in the coming decades? Here's an aspect of the plan sidering AIDS or tuberculosis, which are ravaging the conti­ which no longer comes from idealism, but certainly from a nent, there are presently 200 million people stricken with dream if we ignore the present situation in Africa. Whereas malaria, disabled for life. indebtedness and capital flight have reached record levels, What are the causes of this intolerable situation? Since and in general, foreign investors are leaving Africa, it be­ the beginning of the 1980s, one after another, nearly all the comes a question of obtaining annual investment rates on the Africannations had to submit to the yoke of the International order of 25%! They would have to be dreaming, moreover, Monetary Fund (IMF) and World Bank's structural adjust­ when the World Bank starts proposing that part of these ment programs. Altogether, 25 African countries today are investments should come from greater efforts to encourage undergoing the policies of the IMF with results that one can Africans to save! One could well ask how a population which specify. is already living in wretchedness and which has seen its standard of living drop further and further, could now in­ The swindle of the World Bank crease its savings. Economist Chedly Ayari leans toward this conclusion in Since the World Bank surely does not seek to expose an article that appeared in the Annual Report of Jeune itselfto ridicule, perhaps it is counting on a completely differ­ Afrique, on a prospective analysis of the World Bank for ent economic climate in order to put this plan into action. 1990-2000 in Africa, ("Sub-Saharan Africa, from Crisis to Imagine if, following a process of privatization of public Durable Growth"), a report which determines the stance of sector enterprises in most African countries, there were a the bank for this decade. Could the situation, desperate from full-scale return of foreign capital, These enterprises will any standpoint, explain how the World Bank-which plays need, in effect, a minimum of infrastructure in the true sense the role of gendarme for the international donors--<:an of the term, and "human infrastructure,"· in order to function. preach the necessity to reconcile the most radical economic Therefore, it will become necessary to reestablish roads, liberalism and the development of "social and human infra­ several railways, several hospitals, and to form a manpower structures"? It is also in this report that the bank launches its pool that can work properly. It is only in this context that crusade against "corruption" among Africa's political lay­ one can understand that the WorldlBank has been strongly ers-in any case, the same people the bank installed-in pushing for some time for the integration of the African favor of "democracy." In order to grasp it, we must put continent. This integration, so necessary in the context of a ourselves in the place of the bank: Just to continue colonialist true growth plan for Africa, risks, with the World Bankplan , looting, there must be a population that is able to produce, becoming a mere subterfuge allowing it to better organize and is not sickly and ignorant like today's African people. the looting of the continent. There must also be heads of state who have a popular base and don't "pocket" everything. Savage liberalism Thus, the bank's report puts an accent on four points: This brings us to the most important aspect of the World growth of the Gross Domestic Product (GDP); food security; Bank report-the promotion of the "liberal credo," with its

EIR March 20, 1992 Economics 11 theory that the state must never intervene in the economy and that it is private capital's role to define all the rules of the FIGURE 1 economic game, regardless of whether this is in the interest Price of cacao per metric ton 1975-90 of the country as a whole. The structural adjustment pro­ (in constant 1989 U.S. dollars) grams of the IMF are nothing other than the application of $600 this liberal credo and the means by which foreign private capital is presently in the process of repurchasing Africa at the lowest price, thereby taking back, bit by bit, what they 520 had abandoned at the outset of the nations' independence. 500 "The World Bank calls for deregulation at all levels and in all sectors of African economic life," writes Chedly Ayari. 406 "The government mustavoid all interference with the laws of 400 supply and demand. It must let wages, profits, and exchange 347 rates find their own levels without restraint. The flexible 308 adjustment of exchange rates, that is, the devaluation of the 300 national currency, would be the sole guarantee of a true 250 242 price ....The bank insists, above all, on the benefits of 225 211 devaluation for production, foreign commerce, and growth 199 200 191 175 in Africa. On the domestic capital markets, capital move­ 168 153 ments and transfers must be free of all hindrances." This is 121 the recipe which will allow Africa to go straight into the 90 system of Victorian England: low wages, high prices, priori­ 100 ty given to money. The World Bank has no fear of taking its liberal logic all the way and proposing that henceforth the "citizen consumer" o 1975 1960 1985 1990 pay "totally or partially, for the costs of public services. The Years i recourse to health and education infrastructure , for example, should not be free, but based on the principle of the participa­ tion of the citizen in the costs"! 'A lost decade for Africa' However you look at this World Bank plan-making In another article, "Economy: A Lost Decade for Africa," itself over with a "new skin," disguising itself behind a new Adebayo Adedeji approaches the balance sheet. Africa's "democratic" face, or reestablishing a bit of infrastructure, debts continue to grow, even though the amount of credits the better to grab loot in the liberal context-it cannot suc­ authorized for Africa has decreasedto the point that the conti­ ceed. To claim there will be economic growth in the context nent is a net exporter of capital to the North. of structural adjustments-with priority on debt payment, One major cause for the rise in debt has been, without halting great infrastructure projects, halting subsidies to in­ doubt, the brutal drOp in the prices of raw materials, which dustry and agriculture, currency devaluation, liberalization are presently at their lowest levels in 14 years, and which the of exchange rates, etc .-is economic nonsense. The expect­ countries had to counter through increasingtheir debt burden ed growth from the World Bank plan will only be produced at higher and higher interest rates. Let's remember that the in the pockets of a few large internationalcapita lists. A policy producer countries have nothing to do with the process by that would benefit the African peoples with true economic which raw materials prices become set. It is through an abso­ growth can only take place if the states invest in great infra­ lutely speculative process that these prices become fixed in structure projects-high-speed rail systems, roadways, ca­ the commodities markets in London, New York, or Chicago. nals, energy production, etc .-and in the development of It is the purchases and sales achieved by the large cartels on production of basic products as well as processing industries. these markets which will define the prices of products. The African countries must also unite to accomplish two For economies not merely dependent on exporting raw things: 1) fix the prices of their raw materials; and 2) reject materials, but frequently dependent on only one raw materi­ the IMF's structural adjustment plans. al, the drop in prices (see Figures 1 and 2) becomes translated In the context of increasing wealth, the state will have no into a brutal collapse of their economies. The drop in the problem allocating the fu nds destined to reestablish health price of cacao and coffee, for example, has had catastrophic and educational systems . consequences on the economies of IvoryCoast , the Republic With the massive increase in foreign debt, capital flight, of Central Africa, Cameroon, Rwanda, and Uganda. Just in significant erosion of the exchange rates, record drop in raw 1986, for example , it is estimated that Africa lost $19 billion, materials prices, the last ten years have been catastrophic. or about a third of its potential export receipts, because of

12 Economics EIR March 20, 1992 FIGURE 2 FIGURE 3 Cacao as a percentage of total exports Growth of agricultural production in Africa (percent)

Ghana

8% Ivory Coast 6% cameroon 4%

2% Nigeria

0%

Malaysia

-2.2

Brazil 1985 1986 1987 1988 1989 Years i

kina Faso, and Mali, among others-to free up agricultural the price drop in the principal basic products. In 1989, Ghana surplus for export (Figure 3). PocketSof famine would none­ lost $200 million this way in cacao exports . The suspension theless subsist in Angola, northernSl,'l dan, Ethiopia, and Mo­ of export quotas became translated as well into a loss of $250 zambique. He also notes slight incre�s in mining and manu­ million for the 25 member states of the inter-African coffee facturing production over these samt two years. organization. Still, it is clear that these are not "tremors," however Similarly, Africa has registered a drop in investments fragile-the price of oil has again dropped to intolerable due to "more and more limited resources due to poor results levels for the developing countries-and with respect to the from exports , from stagnation, even from the reduction of catastrophic situation in Africa as a whole, this represents the flow of foreign resources, increased obligations and nothing more than the proverbial drqp in the ocean. greater and greater debt service, and from a series of austerity : measures adopted in the course of classical structural adjust­ African debt payments aid . ment programs." Thus, the portion of investments in the the industrial countries i Gross Domestic Product goes from 20% in the 1970s to 15% The "negative transfer" of funds � to the detriment of Afri­ in the 1980s. ca, reached $30 billion in 1987. Sin4e then, it has not ceased In this context, the volume of African exports has also to grow (Figure 4 and 5). ; seen a significant contraction of 8.6% in 1989, after having Adebayo Adedeji goes into grealer depth on the problem registered a less important drop of 1.8% in 1988. This trans­ of Africa's debt in an article on ebt: Africa Strangled." lates into an increasing marginalization of Africa in interna­ After the first oil shock, Africa an"1 · other developing coun­ tional trade such that its part has gone from 4.7% in 1980 to tries benefittedfrom a considerable ow of resources coming 2.1 % in 1989. from the advanced sector countries, rising up to 5.5% per What was the fate reserved for the African population year in 1978-81. during the 1980s? On this continent, consumption per per­ But the drop in oil prices and the strong rise in interest son, already horribly impoverished, dropped even further by rates during the 1980s brought about a reversal of the situa­ 11% during that decade, when revenues dropped at a rate on tion. Between 1981 and 1985, advMced sector investments the order of 1.7% per year! in underdeveloped countries drop�d at a clip of 4.4% per Adedeji takes note of several signs of a small economic year. Today, not only does Africa npt benefitfrom an influx upturn in 1988-89, essentially due to two factors: the 25% of capital, but it also carries out a net transfer of resources rise in the price of oil during these years, as well as two good into the multilateral institutions, nQtably the IMF, and the years in the agricultural sector. Good harvests allowed a advanced sector nations more geneflllly! certain number of countries-Tanzania, Zambia, Zimbab­ According to a report of the U .11.Commi ssion on Trade we, Kenya, Ivory Coast, Ghana, Togo, Benin, Gambia, Bur- and Development (Unctad) there !Should have been over

ElK March 20, 1992 Economics 13 FIGURE 4 FIGURE 6 Africa's foreign debt . African debt as a percentage of Gross (in billions of 1989 U.S. dollars) Domestic Product

$300 100%

90% 250 80%

70% 200 60%

150 50%

40% 100 30%

50 20%

10%

o -'----"--- 0% 1970 1986 1987 1988 1989 1986 1987 e rs 1988 1989 Years Y a

FIGURE 5 FIGURE 7 Africa's debt service African debt as a percentage of goods and (in billions of 1989 U.S. dollars) services exports

$30

50%

0% 1970 1986 1987 1988 1989 1986 1987 1988 1989 Years Years

market rates were upgraded veryhigh in the 1980s. Average 1980-8 1 a net positive transfer of $50 billion into the non-oil­ interest rates for new loans, which were 5 % in 1975, reached exportingdeveloping countries, but in fact, 1984 witnessed a 10% in 1985. Similarly, interest moratoria were added to the "negative transfer" take hold-that is, money leaving the debt principal. developing sector for the advanced sector-of $14 billion. Therefore , the foreign debt of Africa went from$1 billion In 1986-87, this negative transfer reached $30 billion! in 1970 to $256.9 billion in 1989 . The debt service itself also The problem of Africa's debt is not only localized at the went from $1 billion in 1970 to $25 billion in 1989. With level of the principal, but also at the level of the debt service, respect to the rest of the economy, this is enormous(Figures which reached $25 billion in 1989. For if, in the beginning, 6 and 7). The debt principal makes up 80% of the GDP of the interest rates for contracted credits were rather low, the the whole continent of Africa. The debt service, for its part,

14 Economics EIR March 20, 1992 FIGURE 8 African debt service as a percentage of goods and services exports 40% 37.7

35% 32.6 32.2 30% 28 Preventable diseases 25% turninginto killers 20% by Joyce Fredman 15%

10% It is a sad commentary on the past two decades' "free market" zealotry among ruling financial circles in the United States, 5% that the rate of vaccinations for children in the United States has been drastically plummeting, even as many other coun­ 1986 1987 1988 1989 tries throughout the world-including developing countries Years groaning under massive debt burdens-have succeeded in substantially raising their own rates of immunization. Thanks to the current regime of enforced moral and economic stupidi­ ty , childhood diseases such as mumps, polio, diphtheria, measles, pertussis, rubella, and meningitis that were near repT�sents a good third of total export revenues, which only extinction in the United States, have now resurfaced with a reached $61.4 billion in 1989 (Figure 8). vengeance. It's worth remembering that Peruvian President Alan Numerous specificfactors can be cited for this condition, Garcia, who revolted against the IMF for several years, had not the least of which is the declining standard of living for refused to devote more than the equivalent of 10% of Peru's Americans. The increased poverty rate and inadequate access export earnings to pay the foreign debt. In 1988-89, the to proper healthcare, combined with soaring costs for stan­ African continent has effectively reimbursed $15.9 billion dard vaccines, have put the United States, particularly the the first year,and $17.8 billion the second, which represents minority populations, at greater risk than were they to live in an 11.9% increase; whereas export revenues during the first many Third World countries. Coming in tandem with the period reached no more than 0.7%! Now, with present rates shrinking of the personal family income, is the devastation of accumulation, the debt of black Africa has gone from of the local and state budgets, forcing "triage" decisions by $38.5 billion in 1978 to $153.3 billion in 1990. If, in 1978, authorities, similar to the decision to throw thousands off it already represented 87.8% of export revenues, today it disability support and welfare . represents more than 328.4%! Take measles, for example. During the late 1970s, a huge Thus, if one adds up the reimbursement of credits, the immunization push nearly eradicated this disease. In 1983, losses due to exchange rate deterioration, plus capital flight, there were fewer than 1,500 cases in the United States. But the total outflow of capital in 1988 and 1989 have reached by February 1991, that number had increased over tenfold. - $23 billion each year, surpassing inflow. Let's compare this A classic example of how the urban poor are especially vul­ to public aid for the development of Africa, which constitutes nerable, can be seen in Philadelphia. Last year in Philadel­ the greatest proportion of financialresources that comes Afri­ phia alone, over 1,500had been infected with measles, and ca's way. For the same years , this did not surpass $17 billion nine children died, because the city, like so many others, had each year. many neighborhoods in which fewer than half of the children Now , let's put in their proper place the "debt relief' were up-to-date on their shots. These are primarily the same measures that the 1988 Toronto Group of Seven summit children who do not eat properly, and the great majority of had adopted toward the least advanced African countries. them are either black or Hispanic. Adedeji underlines that these measures only concern $500 The citywide rate for immunization in Philadelphia is million over ten years on behalf of a small group of countries, 54%, while in various black and Hispanic areas , it is only whereas , during the same time period, the debt service rises 25-30%. "St. Christopher's Hospital, located in the city's $25-30 billion per year! north central district, deals with much of this population. There, the clinic receives roughly 20,000 office visits from Th is article was translatedfrom the French. children who get their shots. But another 60,000 per year,

EIR March 20, 1992 Economics 15 who have no doctor, show up only for emergency room visits make it substantially cheaper and easier to monitor their dis­ and are never screened for any vaccines. And Philadelphia tribution. is not unique. With the current price differential, one would expect that all states would contract to bulk purchase with CDC. But in Epidemics waiting to happen fact, only a minority of them do. Because the states are so While Bush goes around the country talking about the much under the gun financially, thanks to the Reagan-Bush best health care in the world, the question on most people's "recovery" which "saved" the federal budget at the expense mind is: To whom is such care accessible? Certainly not our of gutting state and municipal budgets, there is no leeway children. to provide for such vaccinations. Hence, it is left to each A January 1992 study issued by the Children's Defense individual provider to buy vaccines, at many times the cheap­ Fund on Medicaid and Childhood Immunizations (CDF) lays est price. out the grim picture. Study authors Joseph Tiang-Yaulin and One-fourth of America's preschoolers are on Medicaid, Sara Rosenbaum report that "fewer than half of the nation's and the fact that states reimburse physicians at only a fraction urban preschoolers are fully protected against preventable of the fee typically charged by office-based physicians is disease. When the proportion of adquately immunized non­ leading to a situation whereby most doctors simply refer their white infants is compared to other nations' overall rates, the Medicaid patients to the nearest public clinic-a clinic which U.S. ranks 70th in the world-behind Burundi, Indonesia, is probably already overwhelmed. According to the Chil­ Cuba, Jamaica, and Trinidad and Tobago. dren's Defense Fund study, several states actually reimburse "U.S. preschool immunization rates ...declined during physicians for office visits with immunization services at a the 1980s, causing major new outbreaks of preventable child­ rate less than the cost of the vaccines alone. These include hood disease. The most glaring result has been a three-year­ Kentucky, Nevada, West Virginia, Georgia, Nebraska, and long measles epidemic that claimed over 55,000 victims, South Dakota. including 89 who died in 1990. Twice as many children contracted pertussis [whooping cough] last year than in 'Bush health reform a hoax' 1981. ... This dilemma must be situated in a national context of an "The average state underpays physicians nearly $40 be­ overall health care system that has ignored the majority of low usual charges for the immunizations a child needs at 15 children in America. President Bush may well be the worst months. When a child needs a followup visit to complete an offender. Sharon Daly, directorof government and commu­ immunization series, 17 states refuse to pay physicians for nity affairs for the CDF, critically held up the White House the second office visit and only allow billing for the vaccine plan to light of day, in a sharply worded statement: "Presi­ and administration. The result is that many children never dent's Bush's health care reform package is a hoax. The get the additional immunizations they need." President's health care plan offers very limited help to mil­ lions of American middle-income and poor uninsured chil­ Vaccine prices skyrocket dren. Most of the benefits from the new tax deduction for The study also reveals some of the financial potholes that non-poor families proposed by the President will go to upper­ are built into the system. First of all, there are two basic income families. For example, a family earning $70,000 a price levels for vaccines in the United States. There is the year in the 28% tax bracket would receive $1,050, but a "catalogue" price that physicians or other providers pay for family earning$2 0,000 in the 15% tax bracket would receive vaccines. Then there is the "contract" price which the Centers just $375 in tax savings .. .. for Disease Control (CDC) pays for bulk purchases (to be "The President's proposal will not provide an insurance distributed at public clinics). The difference in price is not card, doctor, or clinic to a single American child. Tax credits small. For oral polio vaccine, for example, the catalogue cannot treat a child's strep throat or correct a vision prob­ price is $9.45 as opposed to $2.00 for bulk purchase. lem .. .. But there has also been tremendous inflation within the "In 1990, 8.4 million children-the vast majority of catalogue price itself. From 1981 to 1991, the catalogue whom lived in two-parent, working families with incomes price for diphtheria, tetanus, and pertussis (DTP) vaccine above the poverty line-had no insurance coverage. But the increased from 33¢ to $9. 97-a 2,921 % increase. Partly number of uninsured children is only the tip of the iceberg. responsible is the factoring of malpractice insurance by the Fully 25 million children, 40% of the nation's 65 million drug companies. But if proper services were provided by the youngsters, lack employer-based health insurance and are health care system as a whole, the cost of treating the very outside the mainstream of the health care system. Over the few cases of a child's negative reaction to a vaccine could be past decade, the proportion of children with employer-based absorbed within the general costs. The real issue, however, coverage fell by nearly 14%. If recent trends continue, only is the need to significantly expand bulk purchasing and to half of the nation's children will have employer-based health have central regulation of standard vaccines. This would insurance by the end of the decade," she concluded.

16 Economics EIR March 20, 1992 BCCI plea bargain: an asset grab by u. s. bankingsys tem by Edward Spannaus

On Dec. 19, the U.S. Department of Justice announced that thau and the U.S. Federal Reserve. • the Bank of Credit and Commerce International (BCCI) had On Nov. 14, Smouha and Terwilliger met at the DoJ. entered into a plea agreement through which BCCI pled Smouha had been negotiating with the Fed over the screening gUilty to racketeering and a variety of other charges, and process-how to "separate the bank'$ good depositors from agreed to forfeit all of its assets in the United States. the crooks." This was in the con�xt of the Fed's civil There is less here thanmeets the eye. The plea agreement proceedings against BCCI. But theJl the DoJ "upped the was a "sweetheart" deal worked out with the court-appointed ante," announcing that BCCI would SbOn be subject to crimi­ trustees; the actual owners and operators of BCCI were not nal charges, and that it might have to forfeit all of its U.S. even consulted, and had nothing to do with the "guilty" plea. assets, since criminal proceedings would take priority over The plea was entered on behalf of BCCI by Brian Smouha, civil proceedings. "The shock showed on Smouha's face ," a London-based accountant employed by Touche Ross, and according to participants in the meeting interviewed by the other court-appointed liquidators . Washington Post. Terwilliger said th.t any settlement would Other than an opportunity for the U.S. Justice Depart­ have to include BCCI (i.e., the liquidators) pleading gUilty ment to put out self-serving press releases, the real signifi­ to charges under the Racketeering Influenced and Corrupt cance of plea bargain is that it permitted the U . S. government Organization Act (RICO), paying substantial fines, and co­ to obtain a much larger share of BCCI' s assets than it other­ operating with the investigation of individuals. wise could have. Half of BCCI's $550 million in U.S. assets became available to prop up BCCI-affiliated banks in the Averting bank collapses United States, thus bandaging up one danger point in the Obviously the liquidators had no problem with the guilty crumbling U.S. banking system. plea, nor with cooperating with prosecutors by turning over documents and waiving the attorney-clientprivilege , among Foreign creditors object other privileges. (They did, however, balk at waiving the On Jan. 24, the BCCI plea agreement was approved by attorney-client privilege in any way that might be used federal Judge Joyce Hens Green in Washington, D.C. The against themselves in future civil suilts.) The only issue was approval came over the objections of foreign creditors and how to divide up the pie. According to the Washington Post central banks, who claimed that they were being unfairly cut analysis, "All the parties, it seems, ultimately got what they out of the agreement, under which the $550 million in BCCI wanted." The Justice Department gdt a RICO guilty plea­ assets in the United States are subject to criminal forfeiture. good public relations after the many charges of DoJ inaction Some U.S. banks also objected on the grounds that BCCI and coverup. The U. S. banking systctm got half of the assets assets which they hold may be subject to claims from other to be used to bail out First Ametlican and other BCCI­ countries. The U.S. government said that they could not controlled banks in the United States. Morgenthau got a raise their claims until after the criminal case was decided. guilty plea and a $10 million fine �the amount of the fine Some background on how the plea bargain was arranged having been "literally picked out of the air"). The liquidators was provided in the Jan. 24 Washington Post. The principal got $275 million for a fund for f()reign creditors (a real negotiators were Touche Ross's Smouha, and the U.S. De­ pittance, given the fact that there alIe $30 billion in claims partment of Justice (DoJ) , represented by acting Deputy against about $2 billion in assets).: By using the criminal Attorney General George Terwilliger. (Smouha had pre­ forfeiture weapon, the U.S. got far more than its share out viously spent four years "untangling the affairs" of Banco of the whole deal, at the expensel of foreign banks and Ambrosiano in the early 1980s.) Also brought into the nego­ creditors . tiations were New York District Attorney Robert Morgen- On Jan. 30, U.S. banking regulators decided to close the

EIR March 20, 1992 Economics 17 Independence Bank of Encino, California. Independence a former head of the CIA, Richard Helms, who headed the Bank, one of the three U.S. banks illegally owned by BCCI, agency when BCCI was founded, aided BCCI in its attempt was on the verge of collapse, due to bad real estate loans to take over First American in 1978," said Kerry. He released and inadequate capital. The Federal Deposit Insurance Corp. a copy of a 1978 telex from Helms to BCCI shareholder will be reimbursed by the BCCI forfeiture fund for any Rahim Irvani, promising to indemnify Irvani if he gave a payments it makes to depositors. The real concern of bank power of attorney to Clark Clifford's law firm for the First regulators is First American Bankshares, which operates a American takeover. major banking network in Washington, D.C., Maryland, Kerry did not say it, but Helms and Irvani were business and Virginia. A collapse of First American would have partners at that time in various Iranian ventures. Also men­ significant economic and political fallout in Washington, tioned in the telex is Roy Carlson, then of the Bank of and thus it was First American which was the focus of America, reportedly also a business partner of Helms, who the BCCI special fund, according to sources quoted in the later went to work for BCCI frontrnan Ghaith Pharaon. Washington Post. A number of news stories linking Bush to the BCCI Independence was "not viable," said a source quoted scandal have also surfaced recently, including disclosures by the Washington Post. "It may be better to close it and that Bush's new deputy campaign manager, James Lake, compensate the depositors. Then First American goes on," was paid over $200,000 as a public relations adviser to the he stated. Abu Dhabi Investment Co. , the largest shareholder in BCCI. As EIR has previously reported, the method of the inter­ On Feb. 25 , the New York Post ran a prominent article national BCCI shutdown was considered by the central bank­ by Jack Newfield entitled "BCCI Scandal Points Toward ers as a "coup" for the Basel, Switzerland-based Bank for White House," highlighting the BCCI involvement of International Settlements (BIS) and its Committee on Bank Bush's son, George W. Bush, and also of Sen. Orrin Hatch Supervision, known as the "Cooke committee." Cooke com­ (R-Utah), in the scandal. The story of the younger George mittee officials bragged that they had been able to close a Bush pertains to his role as a director and consultant to $20 billion bank without "even a ripple" in the international Harken Energy, which has substantial BCCI ties. The New financial markets. York Post also reported that PBS's "Frontline" news program However, a report distributed by the United Nations is preparing a documentary to be aired in early April "that Center on Transnational Transactions in early February was will zero in on the Bush administration's role in the highly critical of the method by which BCCI was seized and coverup." shut down by western central bankers. According to the And on Feb. 24, the Wall Street Journal reported on an U.N. report, the abrupt shutdown of the 70-nation banking NBC News story that William Casey, the CIA director dur­ system, which financed $18 billion in trade (much of which ing the Reagan-Bush administration, had secretly met with was legitimate trade) hit certain Third World countries the BCCI head Agha Hasan Abedi, probably in connection with hardest. The economic damage was most severe in Nigeria, CIA aid funneled to Contra and Afghan rebels. Bangladesh, and Zambia, according to the report, which has not been made public. Only Third World targeted So far, the Justice Department's efforts have only target­ Will BCCI scandal hit Bush? ed the Third World owners and operators of BCCI. The only While BCCI has been touted as the "Bank of Crooks and exception to date is the recent indictment of David L. Paul, Criminals," there is massive evidence in the public domain the former head of the failed CenTrust of Miami. Press re­ that BCCI was an instrument of western intelligence agen­ ports have played up Paul's involvement with Democratic cies. The CIA, British and Israeli intelligence were all major Party candidates. But other reports received by EIR suggest players in BCCI's dirty deals-which is why no major breaks that Paul's financial dealings also reach deeply into the Bush in the BCCI scandal are expected as long as George Bush administration. remains in the White House. According to one source, transfers and payoffs to Kis­ In a Senate hearing on Feb . 19, Sen. John Kerry (D­ singer Associates were also made through CenTrust. Kis­ Mass.) reported that a sensitive 1986 CIA memo concerning singer Associates has already been implicated in the coverup BCCI had "disappeared" from both the Treasury Department of $32 million in drug money from Colombia's Medellin and the CIA. Kerry said he was "very disappointed" in the Cartel by BCCI's branch in Tampa, Florida. Documents ob­ lack of cooperation from the CIA, which first had said that tained by EIR (see EIR , Dec. 6, 1991, "Kissinger Caught in no memoranda on BCCI existed and then claimed that only Web of Lies on BCCI Ties") show that Henry Kissinger two documents existed. Kerry has discovered that several personally recommended that Kissinger Associates assist hundred memos had been created. BCCI in a "public relations offensive" immediately after the "We have been told that the CIA had a very limited Tampa BCCI branch and nine of its employees were indicted relationship with BCCI, but over the weekend we learn that on money-laundering charges.

18 Economics EIR March 20, 1992 Banking by John Hoefle

Crisis at Olympia & York the financial capital of Europe . One of the Anglo-Americans' largest real estate developers is The Canary Wharf project was doomed from the start. It was too far sending out "pretty scary messages" to the markets. from the City of London financialdis­ trict, with inadequate transportation and few tenants. To raise the $7 billion needed to finish construction on the Rumors of the imminent bankrupt­ & York, Trizec , and Cadillac-Fair­ project, 0& Y has been forced to go cy of Olympia & York Development view, bought up large chunks of U.S. deeply into debt land sell many of its Ltd., one of the crown jewels of the real estate. The magazine War on assets. Over the past two years, the Anglo-American financial empire, Drugs in January 1981 published a firmhas sold an estimated Can. $2 bil­ sent shocks through the world's fi­ persuasive account of how this buy­ lion in mostly non-real-estate assets. nancial markets the first week of up operation was linked to the drug Meanwhile, the value of its North March, causing selloffs of U.S. and trade . The same network, through American real estate has dropped Canadian bank stocks. Robert Campeau, also bought up large sharply due to the depression. The Olympia & York, owned by the sections of the U . S. retail department firm and its controlled affiliates have billionaire Reichmann brothers of To­ store market. borrowed an estimated $20 billion ronto , is one of the world's largest pri­ In addition to its property acquisi­ from Canadian, U.S., and Hong Kong vate real estate firms. It is the largest tions, this network moved into the banks . Citicorp, Chemical Bank, and private real estate developer and own­ propaganda business, buying British, J.P. Morgan are ithe most exposed of er in the easternUnited States, and the Israeli, and U.S. newspapers through the U.S. banks. largest private landlord in New York the Toronto-based Hollinger Corp. The latest sp.te of bankruptcy ru­ City. 0& Y is also the developer of The board of Hollinger includes Peter mors began Match 3, when O&Y's London's Canary Wharf, the largest Lord Carrington, Henry Kissinger, agent, the Canac$an Imperial Bank of real estate project in Europe. At the Peter Bronfman, Albert Reichmann, Commerce, waited until late in the peak of the real estate bubble, the firm and Robert Campeau. By late 1990, day to redeem �an. $40 million of was worth a reported $25 billion. Hollinger owned over 230 newspa­ Olympia & YoM s commercial paper. The bankruptcy of such a large op­ pers worldwide, including the London "When a compa'y waits until the last eration is a major event by itself, but Daily Telegraph and the Jerusalem minute to redeeD!l itspaper, that sends Olympia & York is much more than a Post. The acquisition of the Post was out a pretty scary message," one mon­ real estate company. It is also a key financed, in part, by Li Ka-Shing, ey market trader told the Toronto component of an Anglo-American in­ vice-chairman of the drug-running Globe and Mail� Further fueling the telligence apparatus in Canada. Hongkong and Shanghai Bank. Li is doubts was the i March 5 announce­ The Reichmann brothers were widely known as the "Red Baron," be­ ment by GW Utiiities Ltd. , a firm89% born in Hungary and moved to Tan­ cause of his ties to Communist China. owned by O&Y, that it was selling giers, Morocco, prior to World War The Toronto network is also in­ its 63% stake in InterproVincial Pipe II. The family was part of the Jewish volved in looting operations in eastern Line, Inc., the world's longest pipe­ underground, smuggling Jews out of Europe, through the Central European line system, for Can. $655 million Hungary. The Reichmanns later made Development Corp. (see EIR, Sept. (about U.S. $554 million). The mon­ a fortune laundering money for the Is­ 20, 1991, "The Kissinger-Sachs ey from the IP� sale will reportedly raeli Mossad, before they moved to 'Shock Therapy' Mob Kills Na­ be used to retire some ofO&Y's slow­ Canada in 1956. tions.") moving commed:ialpaper. In Canada, the Reichmanns joined In 1987, Olympia & York took In the London market, 0&Y loans the British intelligence-controlled over building the Canary Wharf proj­ which were selling for between 80¢ Jewish organized crime network of ect in London's rundown Docklands and 85¢ on the ' dollar at the end of the Bronfman family, which made its area, from a troubled consortium. In February, dropped to 78¢ on March 5, fortune running liquor to the United doing so, 0& Y was performing a ma­ despite being backed by collateral in States during Prohibition. During the jor service to the Margaret Thatcher Gulf Canada Resources Ltd. and Abit­ 1970s and 1980s, this Toronto-based government, which needed the devel­ ibi-Price Inc., two firmscontrolled by network, operating through Olympia opment to maintain London's role as Olympia & Yorl.

EIR March 20 , 1992 Economics 19 u.s. Unemployment Coverup 22% -r------Last 3 months

20% -r------�----�--��------17'2% 17.1% 17.0% lL: 18% -+------�------_*�------�------16.9% 16.8% Dec Jan Feb 16% -r------�------�._------�------���------�--

14% -r--��------�_.h.------��----��----�------��----_J�---- 12'0% 11.9% � 11.8% 12% -r------.I------�----_.�------�__ .__ 11.7% Dec Jan Feb 100���----���------��=_------���-----

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Data used for unpublished unemployment rates Explanatory Note (thousands) In February, nearly million jobless and over million more Civilian Part-tim., Unpub- Unpub- 6 6.5 lebor Official W.nt a economic Official IlehecI II.htod semi-employed people were ignored by the U.S. governmenfs force unemployed job now r_ona U-Sb rale Rate 1 Rale 2 Bureau of Labor Statistics in its calculation of theofficial (U-5b) bla (b+c)la (b+C+CI)/a Y.r (al (bl (el (dl unemployment rate. To bring out the truth, EIR is publishing 1970 82,771 4,093 3,881 2,198 4.9% 9.6% 12.3% the rates you would see if the government didn't cover up. 1971 84,382 5,01 6 4,423 2,452 5.9% 11.2% 14.1% 1972 87,034 4,882 4,493 2,430 5.6% 10.8% 13.6% The widely publicized official unemployment rate is based on 1973 89,429 4,365 4,510 2,343 4.9% 9.9% 12.5% a monthly statistical sampling of approximately house­ 1974 91 ,949 5,156 4,514 2,751 5.6% 10.5% 13.5% 57,000 1975 93,775 7,929 5,271 3,541 8.5% 14.1% 17.9% holds. But in order for someone to be counted as unemployed, 1976 96, 158 7,406 5,233 3,334 7.7% 13.1% 16.6% the respondent member of the household (often not the per­ 6,991 5,775 3,368 7.1% 12.9% 16.3% 1977 99,009 son who is out of work) must be able to state what specific ef­ 1978 102,251 6,202 5,446 3,298 6.1% 11.4% 14.6% 1979 104,962 6, 137 5,427 3,372 5.8% 11.0% 14.2% fort that person made in the last four weeks to find a job. " no specific effort can be cited, the jobless person is classified as 1980 106,940 7,637 5.675 4,064 7.1% 12.4% 16.2% 1981 108,670 8,273 5,835 4,499 7.6% 13.0% 17.1% "not in the labor force" and ignored in the official unemployment 1982 110,204 10,678 6,559 5,852 9.7'%' 15.6% 21 .0% count. 1983 111,550 10,717 6,503 5,997 9.6% 15.4% 20.8% 1984 113,544 8,539 6,070 5,512 7.5% 12.9% 17.7% But nearly 6 million of these discarded people are also reported 1985 115,461 8,312 5,933 5,334 7.2% 12.3% 17.0% on the monthly survey indicating that they "want a regular job 1986 117,834 8,237 5,825 5,345 7.0% 11.9% 16.5% now." EIR's Unpublished Rate 1 is calculated by adding these 1987 119,865 7,425 5,714 5,122 6.2% 11.0% 15.2% 1988 121,869 6,70 1 5,373 4,965 5.5% 9.9"k 14.0% discarded jobless to the officially "unemployed." The 1989 123,869 6,528 5,395 4,656 5.3% 9.6% 13.4% Unpublished Rate 2 includes, in addition, over 6 million more 1990 124,787 6,874 5,473 4,860 5.5% 9.9"k 13.8% people forced into part-time work for economic reasons such 8.426 5,736 6,046 6.7% 11.3% 16.1% 1991 125,303 as slack work or inability to find a full-time job. These people Monthlydata (sNsonally adjusted) show up as employed in the official statistics even if they 1991: worked only one hour during the survey week. Februa/)' 125,076 8, 158 5,728' 6,062 6.5% 11.1% 15.9% March 125,326 8,572 5,728' 6,163 6.8% 11.4% 16.3% For comparability with the official rate, the EIR rates are cal­ April 125,672 8,274 5,519' 6,162 6.6% 11.0% 15.9% culated on the same base figure, the BLS defined civilianlabor May 125,232 8,640 5,519' 5,932 6.9% 11.3% 16.0% June 125,629 8,745 5,519' 5,705 7.0% 11.4% 15.9% force. This figure comprises all civilians classified as either em­ July 125,214 8,501 5,846' 5,881 6.8% 11.5% 16.2% ployed or unemployed. For a number of reasons the civilian 124,904 8,488 5,846' 5,892 6.8% 11.5% 16.2% August labor force can be considered as a bloated figure. Its use as September 125,607 8,442 5,846' 6,374 6.7% 11.4% 16.4% October 125,549 8,582 5,932' 6,328 6.8% 11.6% 16.6% the divisor in unemployment rate calculations thus further November 125,374 8,602 5,932' 6,408 6.9% 11.6% 16.7% masks the depth of the unemployment problem. Large seg­ 125,619 8,891 5,932' 6,321 7.1% 11.8% 16.8% December ments of the population, who might not under healthy economic 1992: conditions be forced to seek work, have become a part of the Janua/)' 126,046 8,929 5,932' 6,719 7.1% 11.8% 17.1% Fabruary 126,287 9,244 5,932' 6,509 7.3% 12.0% 17.2% civilian labor force over the past 25 years of "post-industrial so­ ciety" economy. This includes young mothers, the elderly, and 'The wsn!a jobnow figure is compiled quarterly. The figureused for monthly calculationof the Unpublished Rate 1 is thatfrom the most recent available quarter. many college students.

20 Economics EIR March 20, 1992 Agriculture by Marcia Merry

Bandwagon rolls for 'tree power' Minnesota, also nomestate of Cargill, Those who should know better now join the "alternative"fu els Inc., the giant cartel company that gets government subsidies for com maniacs who are destroying the environment. biomass production of ethanol. An­ other cartel company, Archer Daniels Midland (ADM), headed by former Cargill executive Dwayne Andreas, On March 2, an announcement was serve Program land (crop acreage re­ has received billions of dollars to date made that a Californiaenergy research moved from food production by in tax benefits and subsidies for pro­ institution awarded a grant of governmentaction since 1985) should cessing com, soybeans, and other bio­ $650,000 for tests on burningtrees for be put into fuel trees, thus "providing mass for ethanol. "biomass" power. Strange things are farmers with an important new cash The grant for tree biomass "re­ done every day, but in this case the crop." search" covers two areas: designs for grant comes from an agency that Biomass fuels are touted as envi­ how to bum whole, dried trees at a should know better-the Electric ronmentally friendly because they are very high temperature to get maxi­ Power Research Institute (EPRI), supposedly renewable. However, the mum heat; and secondly, research on based in Palo Alto, California, which energy output is so low-density, and hybrid tree plantations. represents the nation's electric utility the energy involved in making the ap­ Earlier this year, test stacks of companies and funds basic research paratus to capture the biomass power is more than 2,000 tons of trees were into nuclear science. so great, that biomass-produced fuels started. One pile in Minnesota is 75 The recipient company, Energy are a net loss in terms of the real , physi­ fe et x 75 feet x 100 feet. Next, these Performance Systems, Inc., is based cal economy, and they are extremely stacks are to be test dried. The largest in Minnesota, home to the food cartel detrimental to the environment. pile is to have 500 tons of water re­ companies and their various "grass­ The only agencies benefittingfrom moved before the combustion pro­ roots" fronts that are now gung-ho for the imposition of large-scale biomass cess. Finally, the burningtests will be "alternative fuels" as a way of induc­ fuel production have been commodi­ done, to be completed by April. ing farmers and rural residents to ac­ ties cartels looting the environment Under the si>0nsorship of EPRI, commodate to economic decline and and whole populations. Brazil, for ex­ the Department .of Energy, and the rural impoverishment. ample, has had severe damage from U.S. Forest Service, Energy Perfor­ The tree-burning tests involve "gasohol" produced from sugar cane. mance Systems, Inc . already manages growing hybrid hardwoodson planta­ Worldwide, the International 11 tree plantations in the Dakotas, tion plots, drying stacks of timber, Monetary Fund, World Bank, and as­ Minnesota, and Wisconsin, where burning the stacks at 2,400° Fahren­ sociated lenders (Citibank, Chase tree clones are being grown, some of heit, and using the heat for steam tur­ Manhattan, and others) have backed which are said to grow 10 times as bines to produce electricity. The com­ biomass "alternative" fuels in Third fast as common hardwoods. Other test pany's March 2 release states: "The World countries as part of their loot­ locations include Oak Ridge National goal is to replace some of the nation's ing schemes. Whole stretches of Afri­ Laboratory in Tennessee. fo ssil fuel-generated electricity by ret­ ca, India, and South America have The political bandwagon is rolling rofittingold power plants and building been denuded by people forced to for "tree power.�' The platform of the new wood-fired ones. In addition, as bum twigs and trees for cooking and Minnesota Democratic Farmer Labor the demand for electricity grows and heat, because IMF conditionalities Party condemns nuclear and fossil the nation becomes more dependent on prevented electricity infrastructure fuel energy and : calls for "renewable producing electricity using renewable development. Now biomass programs energy sources}' Over June 1-3, a resources like wood biomass, the tech­ are on the agenda for the formerly ad­ farm belt conference entitled "Energy nology will provide farmers with an in­ vanced economy of the U.S.A. in Rural America: Profits and Oppor­ centive to raise more fast-growing "Whole Tree Energy" is the trade­ tunities," is scheduled for Des trees as part of their crop mix on their mark name of the so-called new tech­ Moines, Iowa, co-sponsored by grain existing acreage." nology to be tested in Minnesota and belt state agencies and the federal gov­ The Energy Performance Sys­ Wisconsin. Energy Performance Sys­ ernment, which will feature "Trees to tem's line is that the Conservation Re- tems , Inc., is located in Minneapolis, Energy" seminars.

EIR March 20, 1992 Economics 21 Dateline Mexico by Salvador Lozano

World Bank orders legal abortions Cuba's friendsin Mexico immedi­ Salinas moves to legalize abortions, aft er World Bank ately gave their backing to the abor­ tion bill. Deputy Rosalbina Garavito, technicians calculated that killing babies cuts costs. parliamentary coordinator of Cuauh­ temoc Cardenas's Democratic Revo­ lution Party, announced that the party has always supported the "social de­ ,, On Jan. 31, the World Bank or­ pushed-"saved" nine pesos that mand ·that "a woman can decide free­ dered Ibero-American governments would otherwise have had to be spent ly for her body." But other political to legalize abortion and make it the for maternal-infant health services. parties in Congress are divided. center of their maternal-infant health Bank officials expressed horror at The National Action Party (PAN) programs . Quickly, the government how many babies are born in Central is the only congressional delegation of President Carlos Salinas de Gortari America, and demanded that the num­ which unanimously rejected the bill. put into motion the necessary legisla­ bers be cut. The fertility rate in the PAN Deputy Victor Orduna called tive machinery to take this latest step region averages six children per wom­ "the mere attempt to legislate on this into "modernity": Deputy Blanca an. With "family planning" so cheap matter ...a crime," and announced Ruth Esponda, chairman of the Popu­ (abortions or contraceptives cost be­ that the PAN caucus will oppose the lation Commission of the Chamber of tween 50¢ and $2 per capita) the bank bill with everything ",from denuncia­ Deputies, had the bill legalizing abor­ considers this a good way to cut costs tions before international human tion ready only 20 days later. of social programs, officials said. rights bodies to acts of civil resistance The World Bank delivered these To propose to legalize abortion in all over the country." If abortion is latest orders at a misnamed "Central Catholic Ibero-America is politically legalized, there will be "serious social American Conference for Maternity explosive, but the World Bank evi­ confrontations between Mexicans," without Risk" in Guatemala, attended dently has decided that, with the gov­ he wamed. by health officials, politicians, and ernments of Ibero-America all so ea­ Msgr. Norberto Rivera Carrera, legislators from ten Ibero-American ger to join George Bush's "new world president of the Catholic Bishops' countries. World Bank official Anne order," the time has come to demand Family Life Commission, denounced G. Tiker demanded that governments it. V ntil now, Castro's communist re­ the World Bank policy as demonstra­ provide "safe abortion" in all mater­ gime has been the only government to ting "the intention of the international nal-infant health programs. All "legis­ do so. creditor institutions to pressure the lative changes" required to legalize The Mexican government could Mexican authorities to bend to their abortionmust be undertaken immedi­ move so quickly to satisfy World will," so that they adopt demographic ately, she said. Bank orders, in part because the gov­ policies which "are contrary to human Most remarkable, was that the ernment had already been working rights." Progress, not suppression of World Bank demanded this policy of with Washington to draft bills for human life, is needed; "Mexico's legal genocide on the basis that killing abortion, in discussions running par­ greatest wealth is its Mexicans," he unborn children cuts down hospital allel with the negotiations for a free wrote in a pastoral letter . costs! The bank had just finished a trade accord. Lucy Atkins, the V.S. "Anti-birth imperialism" is re­ study on "Public Hospitals in Devel­ Population Council's representative sponsible for creating the "paranoid oping Countries," which found that in Mexico, had been working on this myth" of overpopUlation, he charged, conditions related to pregnancy and for over a year. Indeed, the Mexican not because it cares about poverty, but birth were the top reason for hospital government has long been, in the because "it seeks to dominate through admissions. The bank is upset that words of the London Financial Times, perversion. This is the only thing these admissions eat up 13-24% of "the darling of the bank's economists which explains the campaigns for por­ health budgets. (and its major shareholder, the nography and the strong financing for Another World Bank study, this V.S.)." Mexico's "intimacy" with the pro-abortion campaigns." Even if the time of Mexico's Social Security sys­ World Bank grows daily, the paper government legalizes abortion, canon tem, calculated that every peso spent said March 3. "The World Bank-Mex­ law will continue judging it "a grave on "family planning" between 1972 ico team has proved to be extremely sin," and anyone who commits it will and 1984-when sterilization was effective in achieving its goals." "automatically be excommunicated."

22 Economics ElK March 20, 1992 Report from Rio by Silvia Palacios

Brazil yields to the bankers, again To that end. Brazil's enormous Collor de Mello signed an unbelievably bad "debt package" state companies fare being sacrificed on the bankers' Scaffold. Perhaps the with the Club of Paris-but will he be able to stick to it? most dramatic case is that of the ener­ gy sector, where one month ago, Min­ ister Marques ordered the accounts of the company Electrobras to be In signing a deal in late February money was attracted primarily by the blocked, since it had fallen behind in with the Club of Paris (the cartel of policy of stratospheric interest rates it� foreign debt JlGlyments, which cur­ governmentcreditors ), President Fer­ and free circulation of money, which rently consume a full 25% of its op­ nando Collor de Mello has placed Bra­ is a part of the commitment the Collor erating costs. Th� "Achilles' heel" of zil on the path of what the monetarists government has assumed with the In­ the Brazilian economy is precisely the like to call "modernization," follow­ ternationalMonetary Fund (IMF). energy sector, primarily due to the in­ ing six years of rocky relations with Despite the fact that the creditor ternal economic disorganization the creditor banks . Entering into the banks have been victorious in ob­ brought about thnough nearly constant usurers' orbit will oblige the country taining all of their demands, they have submission to tbe IMF since 1982, to pay this year a sum total of $11 continued to treat Brazil with utmost when the debt crisis firstexplod ed. billion in intere'st charges on its for­ arrogance and contempt. For exam- ' Electrobras has now dramatically eign debt. pIe, during the eighth U.N. Confer­ reduced its corrunitmentto expanding No one in Brazil has the slightest ence on Trade and Development the country's electricity grid. Invest­ illusion that the negotiations with the (Unctad) held in Cartagena, Colombia ments went from $3.4 billion a year in Group of Seven bankers has yielded Feb. 11, IMF Managing Director Mi­ 1987-89, to $1.5 billion in 1990-91, even the most minimal advantage for chel Camdessus hinted how the Club leading to the paralysis of dozens of their country . The Collor government of Paris bankers, who were readying major projects. has committed itself to paying the Par­ their negotiating strategy, could drive Despite the bankers' dementia and is Club, between now and August the South American giant to its knees. the illusion of "democratic stability" 1993, $4 billion in interest payments. Camdessus criticized Brazil because upon which the Brazilian government Intransigent club ·inembers further it is a country "with the worst income is allegedly founded, reality is prov­ succeeded in whittling Brazil's re­ distribution in the world," such that it ing stronger thap the most faithfully quest for an 18-20 year repayment is "very difficultto help. " applied monetanst dogmas. Numer­ term down to 14 years. And Brazil had better prepare it­ ous press commentaries, both here Indeed, the pact was so unexpect­ self for worse to come, since U.S. As­ and abroad, have indicated that Brazil edly severe that a depressed Central sistant Treasury Secretary David Mul­ is not expected to be able to physically Bank President Francisco Gros de­ ford , otherwise known as "Mr. IMF' comply with its agreements with the clared Feb. 27, "It was the best agree­ in Washington, will be arriving in banks. ment possible." He clarified that Bra­ Brasilia in coming weeks to "help" This forecast intersects the recent zil was not in the same "situation as Economy Minister Marcilio Marques developments in Venezuela. A March Mexico or Argentina," since Brazil is Moreira prepare for June negotiations 7 editorial in 0 Estado de Sao Paulo. behind in its payments. with Brazil's steering committee of mouthpiece of i Brazil's oligarchic In contrast, the Anglo-American creditor banks. elites, commented on the "model" banking establishment is fully en­ In order to be able to pay its foreign free trade policies being imposed by joying the success of its extortion ef­ debt interest arrears , Brazil is applying Venezuelan President Carlos Andres forts. According to a review of the a program of draconian austerity, Perez. In an obvious message to Bra­ conditions of the Brazil-Club of Paris which will assuredly be intensified in silia, 0 Estado stated: "Venezuela's debt pact appearing in the daily 0 Es­ coming months. Indeed, Minister economic progqun was played up as tado de Sao Paulo on Feb . 28, during Marques promised Citibank's Wil­ a successful example of combatting a single day the London branch of liam Rhodes in a New York meeting in excessive regi�entation, stagnation, Citibank pulled in $100 million from early March that Brazil would comply and inflation, and yielding stable the Eurobond market, to be invested with all "the anti-inflationary clauses growth. . . . That program no longer in the Brazilian stock exchanges. The of the agreement with the IMF." exists."

EIR March 20, 1992 Economics 23 Business Briefs

Ibero-America Federal officials are said to be horrified, and effort needed to bring affluence" to Ger­ although only speaking anonymously. Other many's east has "been badly underestimated. " Venezuelan exporters New York hospitals are extremelyreluctant to The German population, especiallyin the release figures on their rates of infection, country's west, he said, had "deceived them­ question Perez's policies strongly suggesting that the epidemic is out of selves into believingthat capitalism in the west control. was robust enough to fuelgrowth in the east." The new president of Venezuela's National This, he explained, has proven to be a grand ExportersAssociation, Eduardo McBride, in­ delusion, because economic growth has come sists on the need to "correctthe [government's] to a standstill in the west. Not to invest in the economic program, because it no longer Environmentalism eastern statesnow, however, would be tocIose works ." one's eyes to the fact that the west owed some­ In a March 4 statement to the press, Street kids killed to ready thing to the east: "The westernGerman econo­ McBride said that the Carlos Andres Perez my has had much profit fromthe demand factor government"made a bad deal with the Interna­ Rio for Earth Summit created by reunification. The east German de­ tional Monetary Fund, in accepting its demand mand for goods came just at the right time to to create new tax measures that will have Between 50 and 60 homeless street children help fill the holes resultingfrom the weakness counterproductive effects, such that they are in Brazil are beingmurdered daily, largely by of world trade." going to collect less because therewill be great­ police officers out to get rid of the petty crime Echoing his remarks, Tyll Necker, presi­ er evasion." that plagues city streets, according to a CNN dent of the Germanindustry association BDI, He accused Economics Minister Carlos news report. The slaughter is also aimed at warnedthe same assembly that should Germa­ Bologna of going back on his word to consult cIeaningup Rio de Janeiro's image, as the June ny as a whole fail to create an upswing in the with the business sector before undertaking environmentalist "EarthSummit" or "Eco-92" east through massive investments, eventually any such measures. approaches. at the price of slowing down projects in the He also demanded that the authorities es­ The British journalistwho filedthe report west, "Not only easternGermany but the eco­ tablish monetary mechanisms to screen legal interviewed Rio's police chief, who said he nomic potential of the Federal Republic as a dollars from drug dollars, "which are doing "didn't approve" of the murders , and that if he whole would suffer lasting damage." such damage to the economy ." The flood of found any of his officers involved, he would narco-dollars is causing an artificialcheapen­ arrest them. The journalist noted that no one ing of the dollar and a revaluationof theVene­ has been arrested. zuelan boll'var,which in turnis hurtingexport­ A congressionalcommittee set up to inves­ Flea Market Economics ers. "What does [Minister Bologna] think the tigate the charges has issued what is being banks are financingus with?" asked McBride, called a landmark reportdemanding the indict­ Call for privatization who suggested that the country was burdened ment of more than 100 individuals from Rio with "a financeminister, instead of aneconom­ de Janeiro and Sao Paulo. The report names of U.S. highways ics minister." lawyers, former and current police officers, and one state legislator. The report, a seven­ Joseph F1om, senior partner of the largest U.S. month effort, cites nearly 5,000 juvenile mur­ law firm, Skadden Arps Slate Meagher and ders in three years. Most of the victims were F1om, wrote in the March 6 "Business Law" Health black. column of London's Financial Times that a "unique area for new investment activities in TB on the rise among the United States" is provided by the Inter­ Modal Surface Transportation Efficiency Act hospital employees Industry of 1991, which opens up U.S. road, bridge, and tunnel constructionto private investment. One-hundred and five hospital employees in German President calls The initiative is the latest effort by the propo­ Woodhull Hospital in New York have convert­ nents of junk bonds and leveraged buyouts to ed to test positivefor tuberculosisover the past for investment in east loot the U.S. economy. Despite the invest­ year. This represents an increase of 1,000% ments being "private ," F10m wants federal over last year's conversion rate. "We are investing in our own, western future subsidies of up to 80%. Woodhull is located in Bushwick, a very when we invest in the east of the united Germa­ F10m noted that the budget crises at all poorsection of New YorkCity , andhas aclien­ ny ," declared Richard von Weizsacker, the levels of governmentwill make it exceedingly tele with a low standard ofliving. The hospital German President, in his opening address to difficult to fund the required level of infra­ itself has not been able to afford the kind of the Leipzig spring industrial fair March 4. He structure spending. "Accordingly, a signifi­ germ-killing ultra-violet lighting and better criticized Chancellor Helmut Kohl 's rosy pro­ cant portion of the cost of infrastructure im­ ventilation that areminimal steps in preventing paganda about the alleged upswing in the five provement will have to come from other tuberculosistra nsmission. eastern states of Germany, saying, "The time sources ....

24 Economics EIR March 20, 1992 • MALAYSIA will build a steel rolling mill In Vietnam in exchange for Vietnamese industrial and ag­ ricultural products, Eric Chia, presi­ "In the act, the federal governmentautho­ their roots in aspects ofthe ongoing financial dent of the Malaysian steel company rizes the imposition of tolls on federally subsi­ revolution. But they did not degenerate into a Perwaja, announced after meeting dized bridges, roads, and tunnels (other than real financial crisis." Premier Vo Van Kiet in Hanoi Feb. those on the Interstate system) to finance their But, says Lamfalussy, "These arguments 22. The premier also asked for assis­ construction or rehabilitation. Toll revenues do not alleviate my concern. . . . The authori­ tance for a trans-Vietnam 500 kilo­ may be set aside to provide a reasonable rate ties have been quite good at crisis manage­ volt transmission line. of return to private investors .... ment, but this praise should not be misunder­ "More important, for the first time since stood. . . . Luck has beenon our side. . . . But • FUSION SCIENTISTS in Rus­ federal aid to highways began in 1916, the the hard fact is that the resilience of our new sia have been hired by the United legislation permits bridge, road, and tunnel financialenvironment has not yet beentested States, according to Department of toll projects to be privately owned and permits by a genuine worldwide recession." Energy spoiesman Phil Keif, who substantial federal subsidies to private invest­ said that $90,000is being paid for the ors willing to undertake transportation infra­ services of researchers at the Kurcha­ structure investments. tov Institute of Atomic Energy in "A federal subsidy of up to 50% of costs Moscow. "These guys are top-notch is allowed to build new roads or rehabilitate Russia fusion scientists," Keiffsaid . "It's an existing bridges, roads, or tunnels. A federal amazing bargain." subsidy of up to 80% is allowed to private Space program is investors willing to construct new bridges or • THE EUROPEAN Space tunnels or replace existing bridges or needed, says official Agency has informally proposed to tunnels." member nations budgets for the 1990s "Our tragedy is that we have not formed a sta­ which will bemore than $2 billion short ble public opinion as to why we need cosmo­ of the agency's original plans. The plan nautics," stated Russianspace chairman Alek­ is to increase spending each year by Finance sandr Dunayev, in an interview reported 5%, exceptforGermany, whosecontri­ March 6 by Federal News Service. He juxta­ bution would remain flatbecause of re­ DIS head warns posedthis to the American "spirit of respectfor unification costs. space science," made easier by the fact that the of 'global crises' U.S. space prograrn was never secret. Now • TWO MILLION people in that the military requirements for space tech­ Kenya will become infected with Bank for InternationalSettlements head Alex­ nology are greatly reduced, he stated, the Rus­ AIDS in the next three years, and andre Lamfalussy has warned that 15 yearsof sian and other Community of Independent 320,000 of them will die by 1995, financial deregulation and market globaliza­ States governments are having a difficulttime says a study by the Kenyan govern­ tion make the possibility of a global financial getting public support for civil space invest­ ment. It saysthat 42,000 people died catastrophe very real. His statement cites as a ments . of AIDS through the end of 1991. special danger the explosion in "off-balance About 7 billion rubles were spenton cos­ sheet" transactions and the cut-throatcompeti­ monautics in 1989, some 6.3 billion in 1990, • 'OVERPOPULATION' and tion for internationalbanking business. and less last year, but Dunayev reported that "pollution" are killing millions of He states, "Is there not something about there are unfinished construction projects people ea$ year, with worse to the financial system which would imply that alone of over 180 billion rubles, so the "allo­ come, says a World Health Organiza­ destructiveshocks carry greatera systemic risk cated funds are a mere pittance. Cosmonautics tion report prepared for the U.N. than in other industries? In particular: Do not needs large investments, and they are lack­ Earth Summit in Rio in June the Lon­ globalization and the speed withwhich shocks ing." Expenditures for the Mir space station don Guardian reported on March 6. are transmitted create fertile ground for full­ are$ 1 million a day , he stated, and so the visits The report will retail the discredited blown crises?" by foreign cosmonauts, which are paidfor by malthusian line that popUlation He takes up the counterargumentof dereg­ their countries, are encouraged, to help pay for growth must be halted or resources ulation advocates. "Our observer would have Mir. could be overwhelmed. noted quite a few financial disturbances, even Dunayev confirmed that managers of the major ones which did not lead to a full-blown former Soviet space program aretrying to sell • PAUL VOLCKER, former U.S. worldwide financial crisis. One can point to whatever they have for hard currency. Also, he Federal Reserve chairman, will be Latin American and East Europeandebt expo­ said, "We have undertaken to launch satellites heading up financial operationsin Rus­ suresof commercial banks, failures in the U. S. and participate in design projects in India. sia and easternEuropean countries in a thriftindustry , the 1987 stockmarket collapse, There are similar plansregarding Brazil. We joint venturebetween Lord Jacob Roth­ banking and financial failures in the United also wish to use the EuropeanSpace Agency." schild and the New York investment States, United Kingdom, the Nordic coun­ He said that the space program definitelyneeds bank James Wolffensohn. tries, Australia, and Japan. Most of these had outside aid.

EIR March 20, 1992 Economics 25 TIillFeature

Japan achieves bigbr eakthroughs in cold fusion by Carol White

On Jan. 28 and 29, two important meetings on cold fu sion were held in Nagoya, Japan, which I was able to attend. The first was a session on cold fusion which opened up a three-day symposium on nonlinear phenomena in electromagnetic fields; the second was an all-day seminar attended by 20 scientists leading cold fusion research teams in Japan. The conference was sponsored by the Japan Society of Applied Electromagnet­ ics in collaboration with a number of prestigious Japanese scientific institutions and the Institute of Electrical and Electronic Engineers (IEEE) of the United States. Afterthe keynote address, the first panel of the Jan. 28 conference was on cold fusion and featured presentations by Dr. Akito Takahashi, a nuclear physicist who heads the Electrical Engineering Department at Osaka University; and by Dr. M. Srinivasan, coordinator of India's cold fusion effort, who heads the Neutron Physics Division at the Bhabha Atomic Research Center. At the conference, Takahashi reported achieving power densities in excess of 3 200 watts per cubic centimeter (cm ). In the month since his talk, his results have been even more dramatic. On one occasion when he tried to tum off his cell; the temperature began to rise, so that he was led to quickly restart electrolysis in order to gain control of the reaction and avert an explosion. Electrolysis effectively stirs the water of the electrolyte, allowing it to carry off heat from the electrode. Instead of simply turning off his experiment, Dr. Takahashi has gradually reduced the current. He has continued to get high excess heat from the cell even with reduced current. Even after reducing the current input, he has had two occasions during which excess heat was generated so rapidly that the water in his cell boiled off. He estimates that power densities during these events may have been as high as 500 watts/cm3 • The heats that he is achieving compare with results reported by Martin Fleischmann and Stanley Pons---except that in this one cell, Takahashi is getting steady heat production, while Fleischmann and Pons have only seen such heat events as bursts .

26 Feature EIR March 20, 1992 Japanese physicist and coldfusion researcher Dr. Akito Takahashi of Osaka University;Jrom left: U.S. and Martin Fleischmann . While Japan is backing coldfusion research such as Dr. Takahashi's, and aC�llevm witchhunt against coldfusion has driven Fleischmann and Pons abroad to continue their groundbreaking

In this, his latest experiment, an average of 70 watts/cm3 has that cold fusion is a near-surface phenomenon rather than a been observed continuously over a two-month period. The volume phenomenon, then his results are strictly comparable total excess heat produced over this period has approached to theirs , not just within range. Where he has actually gotten 300 megajoules, which he calculates to be 150% the amount power emissions as high as 300 watts, Fleischmann and Pons of input energy. This has been coupled with weak neutron are dealing in the range of tens of watts with their setup. emissions. (Dr. Takahashi has recently slightly reduced his Martin Fleischmann, who is very clxcited about the implica­ estimates of power density from those reported at the ISEM tions of Takahashi's work , remains cautious about working conference-by an approximate 30%). with larger electrodes. He warns l about problems of heat Fleischmann and Pons typically work with a needle-thin transfer and other similar considerations, in working with palladium cathode, on the order of a millimeter in diameter, still unknown nuclear processes, Jince there can always be and a few centimeters in length . In this latest experiment, the possibility of a runaway fu sion levent. Takahashi is using as a cathode (negative electrode) a square ­ Takahashi began this latest experiment in December­ shaped thin plate , with a 25 millimeter side and I millimeter i.e., it had been running for two months at the time of the thickness. Thus the volume of his cathode is about 10 times conference. It began producing excess heat on Dec . 20, and greater than theirs. it is still producing heat at this time I This several-month-Iong When Takahashi scales up his maximum excess power Japanese experiment is stunning confirmation of the work of density , this compares to the scaling-up by Fleischmann and Fleischmann and Pons, as reportbd at the Second Annual Pons which gives them on the order of 1 kilowatt/cm3 excess Cold Fusion Conference in Com , Italy, and elsewhere in power-density. This is impressively close to a commercial print. (EIR 's coverage of the Com conference was featured standard of power emission. A useful parameter in judging in the Aug. 16, 1991 issue.) Up until Takahashi's recent the experiment is that the heat output of the Takahashi cold success there has been abundant co firmationof Fleischmann fu sion experiment generates more than IO times the heat and Pons's claims that electrolysis using heavy water pro­ output per cubic centimeter of a fuel rod in a nuclear reactor. duced more heat output than could be accounted for by any The use of a cubic centimeter as a volumetric standard chemical reaction, but none which replicated the high excess comes from engineering practice, where energy output is heats that they have claimed. balanced against materials and other costs; however, it is Experiments using Takahashi's model, or variants of it, useful to bear in mind that, in the Takahashi experiment, the are already under way in Italy, the United States , and in other actual power achieved is IO times greater than that obtained laboratories in Japan. Takahashi imself will be touring the by Fleischmann and Pons. Should it prove to be the case United States in April, where he will be available for techni-

EIR March 20, 1992 Feature 27 cal discussions, and will give major presentations at Massa­ has only been made worse by the ecent tragic accident which chusetts Institute of Technology and Texas A&M, on his occurred at SRI, in which cold fusion experimenter Andrew experiments . There is every reason to hope that, as labora­ Riley was killed when a cell whiJh he was removing from a tories around the world become able to replicate Takahashi's calorimeter blew up [see box] .) I experiment, it will no longer be possible for the enemies of What varies between these programs is the protocol of I cold fusion to suppress this extraordinary new science. With the loading, the configuration o · the structure of the elec- this in mind, I hope that even less technically versed readers trodes, and the metallurgical treatment of the palladium or will want to fo llow the story of Takahashi's experiments. its particular alloys. These are th aspects on which research Takahashi runs the experiment in six-hour cycles, alter­ ,ffort, "" bdng 'on"ntml

28 Feature EIR March 20, 1992 ingly reproducible. A palladium cathode and a platinum at universities, as well as more secret programs being sup­ anode can , and frequently do , produce excess heat, as well ported by industrial consortia. Like SRI these commercially as other products, such as tritium, helium-3, and helium-4, oriented research programs deliberatel maintain a low pro­ � results that indicate some sort ofnuclea r reaction-although file. The university groups are interdiscl�linary and are orga­ not a traditional hot fusion reaction conducted under vacuum nized into 20 working groups that are independent of each conditions. In future research, the emphasis will be to under­ other, but collaborate in sharing inform�tion. The group lead­ stand and control what is actually going on, rather than mere­ ers meet together every few months td review the ongoing ly to establish that cold fusion does exist. work in a friendly but searchingly critiJal environment, as I In Japan there are over 100 researchers who are working saw at the meeting which I attended. T i e program is coordi-

of order. The recombiner from that cell has decomposed and created an unstable, runaway fusi< n reaction. If this into small sphericalballs containing bits of platinum. This was a fusion reaction, neither neutron nor radiation ap­ would indicate the violence of the explosion, but nothing pear to have been detected. about the functioningof the recombiner beforehand. From their first public announcem�nt of cold fusion Although the cell was certainly open to the atmo­ in 1989, Martin Fleischmann and Stanley Pons have sphere, which would argue against a sharp rise in the warned of the danger of a runaway f�sjon event. They pressure of the hydrogerl and water, perhaps the holes have urged that strict safety ProtOflS be followed. were not sufficiently large to act as adequate vents. The Fleischmann and Pons have recommen ed the use of very containing steel wall had a bulge at the bott om, which thin electrodes, under 1 cc in volume, iesigned in a sym­ may indicate a slow buildup of pressure inside. Yet, even metrical configuration. Another recom · ended precaution assuming-for ease of calcuation-that at the time of the is to reduce the electric current gradually, thus deloading accident the canister was three-quarters full of hydrogen the electrode gradually and allowingmAximum heat trans­ (thus overestimating the hydrogen content, since oxygen fer as the electrode cools. They have preferred working would have been present and would be needed for a re­ with open cells in order to allow a sl pw boil-out of the combination to occur), the force of such an explosion solution to occur. would appear to be at least an order of magnitude too Another possibility , one actually ried in some SRI low to account for the damage. This calculation does not experiments, is to use a deuterium fue cell anode. In this assume the buildup of high pressure inside the cell. In the case there would be no decompositio of the water and near future, estimates should be available of the dynamite thus no oxygen collected at the anode Deuterium would equivalent of the explosion. be fed in at the anode and travel to the cathode, where it Apparently Andrew Riley had disconnected the cell would be absorbed within the palladiu n. In a closed cell, from the current, and was removing it from the waterbath recombination could not occur. Wh tever happened at � in which it was contained during electrolysis. Within a SRI, it is certainly true that the direc ion of research at minute, as he was moving to place it upon a work bench, present is toward closed cells at high pressure. This im­ the cell exploded in his hands and a steam cloud erupted. plies using sensing devices-as was �one at SRI-and Thus, the explosion occurred aft er the cell was turned monitoring any accumulation of hydro sen in the laborato­ off. This suggests that the heating occurred within the ry.Some researchers have already be�un introducing ex­ electrode rather than in the solution. The experiment had tra shielding into their laboratories and protective gear for been going on for some time over 1,000 hours . Sensing laboratory workers . devices which were functioning during the accident It is clear that a no-holds-barred re iew of the accident should provide more indication of what caused the ex­ must be conducted' by top researchers n the field in order plosion. to reach a consensus on new safety pro ocols. This implies � Stopping electrolysis affects the ability of the solution that concern for safety should override considerations of to transfer heat from the electrode through the solution, proprietaryinter ests, which have othet!wise hampered sci­ and can allow a steam buildup to occur around the over­ entific cooperation . In any case, thi} will improve the heated electrode . If, in fact, a very high-temperature fu­ conditions for more rapid scientificpr gress. Andrew Ril­ 9 sion event had been occurring, inability to vent the heat ey was young-34 years Old-b he had already may have caused the e�plosion. Here the scale-up of the achieved an impressive record as a c emist specializing size of the electrode would be relevant. Another contribut­ in materials science at the Universit of Utah National ing factor could be the deloading of the electrode as it Cold Fusion Institute and the Materit Is Science Depart­ cooled, which could have caused phase-shift oscillations ment. His death is a painfulloss to us l.--CarolWhite iii

EIR March 20, 1992 Feature 29 nated by Hideo Ikegami, a professor at the National Institute headline, "Cold Fusion Returns." The article characterized of Fusion Science, located at Nagoya U ni versity . Takahashi's experimental results as confirmation of the claims of Fleischmann and Pons. Cold fusion hits the headlines Also on Feb. 18, II Sole 24 Ore, an Italian financial It is an extraordinary sidelight on the viciousness of the newspaper, ran a feature by the prestigious Italian physicist attacks to which Martin Fleischmann and Stanley Pons have Giuliano Preparata, headlined: "Japanese Cold Fusion Tech­ been subjected over the past three years by the popular and nicians Begin to Think about New Power Plants," with a scientific media and the hegemonic scientific societies, that subtitle, "Meanwhile, in our country, a nucleus at the van­ the English-language edition of the monthly ScientificAme ri­ guard of Europe works without support." There was also a can continues to deprecate cold fu sion, while the Japanese­ companion piece headlined "The 'Open' Cell of Tokyo Cre­ language edition of the same magazine (which is published ates Energy for Two Months," by reporter Maria Rosaria Zincone. She quotes Italian nuclear physicist Dr. Francesco Scaramuzzi, who was present at the lecture, commenting on As Ta kahashisays, this is "unusual the sorry state of cold fusion research in Europe and the United States. With absolute accuracy, Scaramuzzi said of jus ion," and he has a complicated the Japanese program: "What has been going on now for theory which includes thejusion qf these last few years is not a miracle. What has been evidenced several nuclei simultaneously-a in Japan, besides the scientific results, is above all the exam­ ple of a coordinated research which might have also been theory which, in the end, may or carried out also in Europe or the United States." may not bebome out-but the What is cold fusion? excitement qfhis recent results lies On March 23, 1989, Martin Fleischmann and Stanley more in the vitality qfthe experiment Pons startled the scientificworld and the general public when itself. they revealed the results of thousands of experiments in which they had achieved heats in excess of any that could be accounted for by a chemical process, by conducting a table­ top electrolysis experiment. in Japan) has featured Dr. Takahashi's work in its March Using a deceptively simple battery setup (the experiment issue. There , the editors apparently felt constrained to admit is still hellishly difficultto replicate), with a platinum anode that his results add significantly to the weight of evidence (positive electrode) and a palladium cathode, and a simple confirming the discovery of the phenomenon of fu sion-in-a­ electrolyte of heavy water doused with a lithium compound, bottle at room temperatures. they were able to replicate the energy source of the Sun and On Feb. 13, some 100scientists and media representa­ stars, but at room temperature. The secret appeared to lie in tives gathered in Italy-at the National Center for Nuclear the propensity of palladium to absorb enormous amounts of Research at Frascati, on the outskirts of Rome-to hear a hydrogen-the gas produced at the cathode when water is reporton the Japanese cold fusion program by Dr. Ikegami. subjected to electrolysis and decomposed. (Oxygen flows to He reported on the work of Dr. Takahashi and other Japanese the anode.) researchers who have begun to report very high excess heat Fusion occurs when the nuclei of two atoms are fused, from their cold fusion experiments. Interest was high among despite the fact that they are positively charged and generally the audience, although there is still a good deal of skepticism repel each other. This is called, in common scientific par­ in Italy, as elsewhere, about the reality of cold fusion. lance, overcoming the Coulomb barrier. In controlled hot Ikegami's talk was given favorable coverage in major fusion experiments, plasmas made of ionized steam are gen­ Italian newspapers such as La Repubblica, on Feb. 17. Cap­ erally exceedingly thin, and the hydrogen nuclei are brought turing the mood in the scientific community which was gener­ together at high speeds in order to accomplish their fusion ated by the news from Japan, La Repubblica ran coverage of and the consequent release of energy. The speed to which the Ikegami's speech with the dramatic headline: "From a Test hydrogen (or deuterium) nuclei are accelerated is generally Tube, the Energy for Lighting a 110 Watt Bulb: Here Comes calibrated as a temperature , in this case in the hundreds of Cold Fusion." The article opened: "Japan wins the challenge millions of degrees. In the case of the Sun, the fusion plasma of the artificial Sun. A hundred or so Japanese scientists with is much more densely compacted, and fusion can occur at funds from the Tokyo government, have worked for almost temperatures in the tens of millions of degrees. How, then, three years on the project. Said the Italian researchers: 'We can fusion occur at room temperature? stood there with our mouths open.' " On the next day, the Clearly, there must be several extraordinary properties daily La Stampa ran an article on the science page with the of the palladium lattice, into which deuterium, the heavy

30 Feature EIR March 20, 1992 isotope of hydrogen, is compacted. (Deuterium is hydrogen Takahashi's dramatic success story after three years of pain­ which contains in its nucleus a proton and a neutron, instead ful effort. A good deal of the art of a successful experiment of merely one proton.) When two deuterium atoms fuse, they is in raising the loading. Even so, it is still impossible to produce another heavy isotope of hydrogen called tritium account for the lattice-deuteron interaction (a phonon-photon and release a proton; or equally likely-in the case of hot interaction) by conventional means. fusion-they will produce the next higher element, helium, As Takahashi says, this is "unusual fusion," and he has a which has two protons in its nucleus. complicated theory which includes the fusion of several nuclei The isotope helium-3 (with two protons and one neutron simultaneously-a theory which, in the end, may or may not in its nucleus) is produced with an additional neutron being be borne out-but the excitement of his recent results lies released as well. It is this neutron which is typically detected more in the vitality of the experiment itself. We shall explore in order to measure the production of helium-3, but in the Takahashi's theory below, when we go into the detail of his case of cold fusion, only a very minute amount of helium-3, experiments as they developed over a three-year period. compared to tritium, is produced. Like helium-3, deuterium is an isotope, but of hydrogen. Tritium is another isotope of Takahashi's account hydrogen, which has two neutrons and one proton. Isotopes At the Jan. 28 meeting in Japan, Takahashi reportedpow­ of a given element will react chemically in the same man­ er levels over 200 watts/cm3, and. just as exciting, he said ner-thus light and heavy water will undergo similar chemi­ that over the one-month duration of his ongoing experiment cal reactions-but certain isotopes like helium-3 (in the case (his cold fusion experiment #115), 100mega joules of more of helium), and deuterium and tritium (in the case of hydro­ energy had been produced than was input. (The 30% down­ gen) are inherently more unstable and therefore fuse more ward revisions from these figures noted above may be too easily. stringent, but he requested that we publish them pending a There are serious problems raised by cold fusion experi­ rigorous review of his data which be is undertaking.) ments. They simply do not behave like typical fusion experi­ At the beginning of his pre$entation, Dr. Takahashi ments . Despite the presence of tritium in the electrolyte after stressed just how anomalous cold fusion results really were, heavy-water electrolysis, which was not there at the begin­ but he pointed to the fact that ma�y experimenters, such as ning of the experiment and which could not have been pro­ Dr. Srinivasan and Dr. John Bockris, as well as his own duced by any known chemical means, the amount discovered group, have found high tritium production; and several ex­ is too low by up to as much as a billion times, to account for perimenters have also observed high-energy neutrons, in the the kinds of heat which the cell produces. Similarly , far range of 3-7 MeV . too little helium-3 is discovered. The phenomena are still From the work of his own group, Dr. Takahashi, a nucle­ sporadic; the occurrence of two distinct peaks of neutron ar physicist, is sure that there is always a correlation between generation also needs explanation. neutron emissions and the production of tritium, although By the criteria of traditional physics, a fusion reaction sometimes there is a problem in detecting the tritium due cannot be taking place; it should not be possible under the to the extremely low level of neutron emissions. He also conditions of the Fleischmann-Pons experiment or Taka­ reiterated a point which the detractors of the Fleischmann­ hashi's version of it. The occurrence of fusion under these Pons effect attempt to overlook. The production of excess conditions is wildly improbable. Relying on their theory rath­ heats of more than 10 megajoules, cannot be explained by a er than the evidence before their eyes, many scientists deny merely chemical reaction. the reality of cold fusion, on the grounds that this would In his earlier experiments leading up to the Como confer­ mean hegemonic theory has been challenged by Fleischmann ence last summer, he had overlooked the crucial importance and Pons's unique experiment. of achieving a loading ratio greater than .9 or 1, and as a As yet, even those scientists who are fully convinced that result he was able to generate very little excess heat. In this some nuclear event is taking place-which it is convenient talk he emphasized just how important the loading ratio is to call cold fusion, although it is likely to be far more compli­ (see Figure 1). One problem in his earlier experiments was cated than traditional fu sion events--cannot explain what that he configured the cathode and anode in his cell side-by­ exactly is occurring. side, whereas Fleischmann and Pons emphasize the impor­ Clearly there are unusual conditions created within the tance of symmetry. Thus, they favor an axially symmetric lattice. Palladium is known to absorb high amounts of hydro­ design with a cylindrical, platinum anode fitting around a gen (and all of its isotopes including deuterium). For cold needle-thin palladium cathode. Improving the loading ratio fusion to occur, it is desirable to have at least one deuteron­ is, as we shall see, one ofthe secrets of Takahashi's dramatic that is, a deuterium nucleus-packed into the lattice for every success story after three years of painful effort. palladium nucleus. This is known as a one-to-one loading Takahashi and a group of collaborators at Osaka Univer­ ratio. It is better still if the deuterons are packed in even sity began performing their own cold fusion experiments more densely . This, as we shall see, is one of the secrets of shortly after Fleischmann and P(i)ns made their historic an-

EIR March 20, 1992 Feature 31 FIGURE 1 FIGURE 2 Cell for pulse-electrolysis experiments using The experiment that really worked: D20+LiOD electrolyte (500 ml) with Pd Takahashi's Experiment 0 cathode Homogeneous O-Ioad from two sides

To anode

T110 1�+5 To anode To cathode Coolant inlet temperature: 20·C constant by chiller iE---- 115 ---:.! Flow rate: constant Pd

'-...... � Polyethylene thermocouple Pt

Pd /1'-'----,-' served another broad peak of neutron emissions, which oc­ curred between 3 and 7 MeV. This gave Takahashi and his collaborators at Osaka University confidence that they were observing a new kind of fusion. In the C-series of experi­ nouncement. ments , he was also able to detect the presence of tritium. It Takahashi groups his three years of experimental work was with this C-series, that he first began pulsing from low into four categories which he labels A, B, C, and D (see to high currents, in six-hour sweeps. Here he achieved heats Figure 2). In his first, A-series of experiments, he achieved in the range of 1 watt/cm3, which was also a definiteadvance. only a very low level of neutron emissions, and these showed Over' the three-year period of experimenting, Dr. Taka­ a peak energy level of 2.45 Me V. He introduced 30-second hashi and his collaborators achieved several essential im­ and 4-minute pulse of the current in order to cause deuterons provements in their experiment. For one thing, they in­ trapped in the palladium lattice to oscillate. To improve this creased their maximum current from a high of ,only .8 performance he began to lengthen the pulse of the current in amperes in A-series, to 1.4 amperes in B, to 2.8-3 amperes his second, B-series. The thinking behind this was to intro­ in the C-series, until recently when they have been working duce a certain disequilibrium which could catapult the deuter- with currents as high as 4.2-5 amperes. In order to work 0ns into sufficiently close proximity to fuse . The pulse dura­ safely with these high currents, it was necessary for them to tions were only minutes long. employ better and better external cooling systems-these In the B-series of experiments, for the first time he ob- allow ordinary water to flow through a cooling pipe during

32 Feature EIR March 20, 1992 the experiment to avoid boiling out the electrolyte. They also palladium rod, and a palladium plate of the same dimensions went from a pulse range from 2 to 20 minutes in the A- and as the plate in experiment D. While the excess heat level in B-series, to six-hour sweeps in series C and D. the C-series fromthe rod was about :l watt/cm3 , there was no One result was the increase in neutron yields, which rose detectable heat here, from the plate. from an original sporadic one to two neutrons per second per In the D-series, in the first experiment (#113), current cubic centimeter, to as high as 100, simply as a result of was applied to one side of the plate only, and for one month pulsing the current. In the B-series, the neutron yield in­ the ramped current was alternated in 20-minute periods, be­ creased to 15 neutrons/second/cm3• Now they were able to fore they introduced six-hour sweeps each of low and high observe the two peaks , which encouraged them in their belief current. They achieved a 50-watt excess power level for a that they were witnessing a new phenomenon of cold fu sion, week, after which they terminated the experiment. They then since with "traditional" hot fusion only one 2.45 MeV peak began experiment #114 (which is, in reality, their present would be expected. experiment #115 in its loading phase). Here, they used a For maximizing neutron emissions, an 18-minute pulse higher, 5 ampere current and loaded the plate, using 20- appears to be optimum along with a 3 ampere current; how­ minute ramped pulses, for just a week. (The ramped pulse­ ever, this regimen did not produce significant excess heat. also known as a saw-toothed wave-increases from zero to The six-hour high-currentlsix-hourlow-cur rent mode created the maximum 5 amperes and then is brought back down to conditions in which they were able to gain the remarkable zero, all within a given period-in this case, 20 minutes.) excess heats of experiment D. The key here seems to be that This is obviously a key feature of their success in a rapid, moving from a high-current mode back to a low-currentmode high-loading of the cathode. Five amperes was also the high­ apparently enables the electrode to "heal" itself of damages est current that Takahashi has ever used in his experiments. and achieve successively higher loadings of deuterium in the Clearly another major factor in the success of the experiment palladium electrode. is the fact that the plate was loaded on both sides simultane­ At the time when they performed experiment A, they ously. believed that the cathode loading ratio was only . 3; however, Dr. Takahashi typically uses .3 moles of lithium oxide they measured this loading only after takingthe cathode out (LiO) for every liter of heavy-water electrolyte, which is of the electrolyte, and therefore, in all probability, a signifi­ about three times more than that used by Fleischmann and cant amount of deuterium would have escaped before they Pons. This allows him to run his e�periment at a lower volt­ were able to measure the ratio, using a secondary emission age, at which he experiences less ohmic heating. In his first mass spectrometer. Still, the conditions under with the exper­ experiments, series-A, however, he added lithium sulfate iment was performed indicate that the loading ratio would rather than lithium oxide to his heavy-water electrolyte, have been maximally at around .6, if that. They were not which may have been a contributing factor in his poor results able to measure tritium from experiment A, because with of the time. To summarize, over the series from A through existing techniques, at least 10,000 more atoms of tritium D, not only did Takahashi improve the loading of the cath­ are required for detection than is needed to detect helium-3, ode, but he also ran his experiments at increasingly high using state-of-the-art neutron detection equipment. currents. As was firstestablished at Como, it is necessary to be in the range of one-to-one deuterium to palladium, before high Experiments make progress excess heats are produced. Experimenters in Japan now be­ To begin with, Dr. Takahashi hoped to cause cold fusion lieve they can go up to 2:1 or even 3:1 loading ratios, with to occur by rapidly alternating from low to high current. suitably enhanced results. Key here is the fact of identifying His intention was to create disequilibrium conditions which and filling not only octahedral sites in the palladium lattice, would accelerate the deuterons, SQ that they would oscillate but tetrahedral sites as well (see Figures 3 and 4). and thereby come into closer proximity with each other. Even Takahashi had several problems which lowered his load­ from the beginning he believed that the Fleischmann-Pons ing ratio in his experimental design. Even after adopting a effect was caused by multi-body fusion. At the same time he plate configuration, Takahashi at first loaded the plate from looked to the excess electrons in the palladium lattice to only one side. Only when, in this last experiment, he used screen the deuterons, so that their effective positive charge two anodes-placed in front of and behind the cathode---did was lowered. This was a mechanism by which he hoped he receive his startlingly successful results. to explain how the deuterons could overcome the Coulomb Takahashi has always worked with relatively large cath­ barrier under room-temperature conditions. Since palladium odes. In his first experiments he used palladium of 99% has 10 valence electrons (the outer-shell electrons free to purity, with radii between 4 and 5 millimeters in diameter interact in chemical reactions), such screening can occur. and 11 millimeters in length. In experiment B, cathodes were While he did not achieve the kind of excess heat he had 10 mm in diameter and 30 mm long. In the C-series, he hoped to see-in the range of 10 watts/cm3-the fact that used both a 20 mm diameter and 30 mm-Iong cylindrical he did observe neutron yields of 2-5 neutrons/second/cm3

EIR March 20, 1992 Feature 33 FIGURE 3 How the deuterium is loaded into both octahedral and tetrahedral sites

a) In principle, we can consider up to 5D process, which is omitted here, because of less "combination," so the potential picture becomes:

"""' -- , ...... ,

k "03" "0," ' ,--- ",/ -- " ."". --..... /' ..... , 1"') .---t- shallow

- y \,- �---- "...... \'-..--::)) k\ ---..4I \ ''t,'' " deep , I ...."" b) If you see "0" site at the center, it is surrounded with 8 "t" sites . From a) and b), ratio of "0" f"t" numbers is 4/8=lh. Hence, Pd: "0" :"t"=I:I:2. + + "Octahedron"

Combination

One D falling to "t" 4

Two D falling to "t" 6

Three D falling to "t" = 4

,/ Four D falling to "t" = ./ ./ ,/ ./ "Tetrahedron" ("t," is surrounded with 4 "0" sites) encouraged him in his belief that a fusion event was oc­ lattice known as octahedral sites. The probability is then a lso curring. This series of experiments did not yet point to what mere (!) 1O- , still a ridiculously low probability for fusion he calls "unusual fusion," although the existence of room­ to occur. If fusion can be assumed to occur in lattice vacanc­ temperature fusion itself is certainly anomalous. Experi­ ies, where densities are magnified a hundred-thousandfold, 8 ments at Los Alamos National Laboratory in i:lew Mexico, then the probability is increased to 10- Italy's Frascati University, and the National Fusion Institute Takahashi assumed that in the first stage of room-temper­ at Nagoya have definitely confirmed significant neutron ature fu sion-within the palladium lattice-with deuterium­ yields from experiments using the Fleischmann-Pons para­ deuterium fusion, a 50% branching ratio would occur be­ digm, and even the level of neutron emission achieved by tween production of tritium and helium-3 (a contention which Stephen Jones has been verifiedat the Kamiokande neutrino­ other researchers would deny for cold fusion), and that there­ detection facility in Japan, although scientists there are still fore he was finding between two and five fusion events oc­ rechecking the results. Takahashi's first results were only curring per second in a cubic centimeter volume cathode. comparable to those that Jones had achieved. Assuming more tritium-producing events to helium-3, neu­ At room temperature, in a vacuum, the expected number tron-producing events would raise the number of fusions of fusion events between two deuterons comes to 10-3800per accordingly, and thereby establish Takahashi's point even second per deuteron (in other words 11100,000,000,000, ... more dramatically. To realize the incongruity of his results with 3,800 zeros in the denominator). The probability is with established theory, just compare a probability of fusion improved in the palladium lattice because of the enforced occurring, which is 11100,000,000,to a reality of one event proximity of the deuterons, which take up positions in the per second!

34 Feature EIR March 20, 1992 vertices of the cube, and the center of each face. The octahe­ FIGURE 4 dral sites which are entered by the deuterons are located on Face-centered cubic PdD lattice the edges of the cube, at their midpoints , and also in the center of the cube. These form shallow potential wells, so that the deuterons are not fixed inthese positions. An analogy might be to balls located in valleys at the bottom of relatively short hills. At the point when the octahedral sites are filled, a one-to-one loading ratio of deuterons to palladium atoms will have occurred , and most of the free electrons will be bound up around the deuterons to create the shallow potential wells. Electron screening is initially quite effective in en­ hancing the fusion rate , but this effectiveness decreases as o the octahedral sites fill up and there are more deuterons per free electrons. To begin with, Takahashi supposed that a new mecha­ nism was needed, and he proposed that three-body fusion might be occurring along with traditional two-body fusion. To achieve this, the deuterons would have to be excited to o the point that they would begin to oscillate harmonically. Takahashi proposed that the deuterons located in three of the four shallow octahedral sites surrounding a tetrahedral • Deuteron at octahedral site site, might come together at tetrahedral sites of the palladium + Tetrahedral site lattice to fuse there. These tetrahedral sites are located at the Palladium o vertices of what would be a smaller cube placed with the The deuteron wave fu nction at a highly excited state has eight cubic structure of the palladium lattice. wings sp reading toward the eight nearest tetrahedral sites of the Four octahedral sites surround ea�h tetrahedral site-thus fo ur surrounding fcc cubes, hence three deuterons meet at a creating a tetrahedral , pyramidal geometry . Eight tetrahedral tetrahedral site as indicated by the arrows. sites surround each octahedral site, giving double the number 4 3D--+d+ He+23.8 MeV (14) of tetrahedral to octahedral sites open to occupation by a 3 �t+ He +9.5 MeV (14') deuteron. He supposes that over time� more and more tetrahe­ and dral sites are also occupied with deuterons, although this also 4D--+4He + 4He +47 . 6MeV (IS) goes against conventional theory . It is generally believed that tetrahedral sites remain vacant. He hypothesizes that his three-body deuteron fusion would create two different Takahashi pointed to the difficulty facing those people possible reactions, either one deuteron traveling at high speed who try to explain the occurrence of fusion in the lattice and a helium-4 nucleus (which would contain two protons by an exchange of energy between the fused deuterons and and two neutrons), or tritium and belium-3. It is the two­ oscillating palladium lattices (although there are theories body fusion of the high-speed deuterons which Takahashi such as that of Giuliano Preparata which do, at least in princi­ supposes to account for the 3-7 Me!V neutron peak, which ple, deal with the question by supposing that a special coher­ he has observed subsequent to his firstseries of experiments. ence domain is maintained in the lattice). In any event, Taka­ hashi proposes a multi-body fusion reaction to circumvent Another look at his experiment the difficulty, along with a special geometry within the lat­ In the B-series of experiments, Takahashi and his collab­ tice . The problem of lattice-deuteron interaction can be sum­ orators used an experimental setup similar to their first one, marized as follows: When two deuterons fu se, they will but with a higher current input. For three weeks they loaded briefly form an excited helium-4 nucleus, but this compound the cathode, alternating high and low current in 2.25-minute 20 21 nucleus is extremely short-lived, only 10- or 10- seconds. periods. During the fourth week they measured the neutron The palladium atoms in the lattice can only vibrate at 100- background, and then in the fifth week they began the exper­ millionth of that velocity; therefore there is no easy way iment. for the compound nucleus of the fused deuterons to transfer They measured neutrons, tritium, and heat. At the begin­ energy to the palladium lattice . ning of the experiment, during loading, they registered a Takahashi's solution is quite audacious. He points to the slight increase in neutron emissions� which decreased in the fact that palladium forms what is called a face-centered cubic third week. After increasing the debsity of lithium oxide in lattice (see Figures 3 and 4) . The palladium appears at the the electrolyte, however, the neutron emission rate doubled.

EIR March 20, 1992 Feature 35 It was at this point that they extended the pulses from 4.5 to succeeded on the level of producing neutron emissions. Not 19 minutes. After a fluctuation, the neutron rates settled into content with merely fielding a theory, they continued their a ratio of 1.15 to the background level, with a maximum rate experimental program, despite a certain amount of frus­ of emissions after 180 hours of about 15 neutrons/second/cm3 tration. of palladium. In a repeat of the B-series experiments, as before, they Fifty percent of the neutrons which they measured fell made careful checks against background radiation. They within the high-energy 3-7 Me V bandwidth. Under the given found that neutron bursts were correlated with the appearance conditions, the expected energy level of the neutrons would of high-energy neutrons. Whereas in the beginning of the have been 2.45 MeV for deuterium-deuterium fusion, experiment, 2.45 MeV neutron emissions predominated, be­ . 14.1 MeV for deuterium-tritium fusion, 3.76 for tritium­ tween 500 and 600 hours into the experiment, the higher tritium fu sion, 10.1 for tritium-helium-3 fusion, and similar­ energy peak was dominant. When they changed cathodes, ly different values than were found for deuterium-lithium they were still able to repeat the experiment. fusion. Takahashi's conjecture is that there is a compound Takahashi himself admits that his three-body model is reaction going on. First, three deuterons fuse to produce a problematic, in that it supposes an occurrence even more deuteron traveling at 15.9 MeV kinetic energy, and a fast­ improbable than deuteron-deuteron fusion at room tempera­ traveling alpha particle (a helium-4 nucleus) is also emitted. ture-i.e., that three deuterons can overcome the Coulomb Then the fast deuteron slows down in the lattice and fuses barrier simultaneously. His explanation includes quantum with another deuteron, to produce the requisite fast neutrons excitation of the deuterons resident in the octahedral sites in the 3-7 Me V range. At this point in their cold fusion and the existence of free electron clouds (plasmons) around experimental effort , Takahashi and his associates believed tetrahedral sites, which help to enhance the barrier penetra­ that his theory accounted for the observations of excess heat tion probability. Further, accordingto his theory, at a certain and anomalously high tritium-to-neutronratios that had been point, the existence of three-bodyfu sing clusters of deuterons found by other experimenters, but they themselves had only will exclude the continuation of two-body deuterium fusion.

because cold fusion is no longer a phenomenon or curiosi­ Proceedings of Como ty; it is a new area of science, which must be seriously investigated. conference released "There is a story," Del Giudice continued in a humor­ ous vein, "of the fellow who discovered boiling water, On Jan . 31, Martin Fleischmann and Stanley Pons pre­ and explained to his astonished colleague how he went sented one of their first cold fusion cells to the Leonardo about lighting a fire under a pot of water, and how this da Vinci Museum of Science and Technology in Milan, soon began to produce bubbles and vapor. His colleague Italy, at a press conference which was attended by 250 tried to 'repeat' the experiment by taking a large pot of people. The occasion was the release of the book-length water and lighting a match under it. He concluded that the proceedings of the Second Annual Cold Fusion Confer­ experiment was not repeatable, and that the first scientist ence in Como (see EIR , Aug. 16, 1991 for our report on was a fraud. To put the matter simply, certain conditions the conference). must be satisfied in order to achieve a positive result." The press conference was opened by Dr. Fontanesi, a He summarized the basis for believing that the physicist and director of the museum, who made a strong Fleischmann-Pons experiment is a true example of a fu­ statement on the importance of research such as that into sion reaction. "We hypothesize that there are various nu­ cold fu sion: "Science is not made of absolute truths. We clear reactions being observed, because some people see are constantly modifying, we are constantly learning. We tritium, others neutrons, and others observe heat. When are proud to host this press conference because we believe a significant amount of heat is observed we also see heli­ that the scientific dialogue in search of the truth must um-4 and gamma rays; and these are always in a quantity continue. No one today can simply ignore the work done proportional to the heat. This is a key reaction. You can in the area of cold fusion, and I am one who has spent say that it is the smoking gun in the hand of the assassin." most of my professional years working on hot fusion." Martin Fleischmann and Stanley Poils both spoke. Como conference organizer Dr. Emilio Del Giudice Fleischmann described how he and Pons were led to their of the University of Milan emphasized why the title given historic discovery. Describing himself as a "scientific ar­ to the proceedings was "The Science of Cold Fusion"- cheologist," he explained that he had knowledge of re-

36 Feature EIR March 20, 1992 Only in his C-series of experiments was Takahashi actu­ peared to be correlatedwith the pro4uction of tritium, which ally able to observe tritium along with the neutrons that he also increased over time. It was in allotherexperiment in this produced. He did so by taking weekly samples of the electro­ C-series, during early autumn in 1991, Takahashi firstused a lyte. These results were reported in the summer of 1991 at plate configuration. A similar neutron spectrum was emitted the Como cold fusion conference, where Takahashi elaborat­ from the plate, along with tritium in the C-series; however, ed his theory to incorporate Giuliano Preparata's superradi­ they did not get excess heat from thjs plate. ance theory to explain how the Coulomb barrier is overcome Japanese scientists are now explording the hypothesis (see box) . that it is possible to load a palladium lattice at the tetrahedral At Como, he also suggested that a number of subsidiary as well as at the octahedral sites. T,trahedral sites are deep­ fusion reactions might also be occurring, such as accelerated potential well sites, and can only � loaded with difficulty tritium fusion with deuterium to produce a very fast neutron over time. It is now believed that the alternation of low and and helium-4. It was only in this series of experiments that high current causes the octahedral sites in the lattice to unload Takahashi and his associates were able to detect tritium. In and reload-but on each reloading� a certain percentage of this C-series of experiments , he also used a cubic geometry tetrahedral sites are already filled.: These tetrahedral sites, for his electrode , which was actually a cubic centimeter in unlike their octahedral counterparts, will tend to remain diameter. filled, even as the current is shifted. Since there are double In this experiment, which also utilized alternating six­ the number of tetrahedral to octahedral sites, filling both hour sweeps in high- and low-currentmode , Takahashi's team could give a 3:1 loading ratio of the deuterium to the pal­ found that neutron emissions increased over time, with the ladium. largest excess neutrons occurring over a I ,050-second peri­ Whatever the specificdetai ls of Takahashi' s theory prove od-approximately three sweeps . In general, higher neutron to be, it is likely that the condition� which he identifies with emissions occurred for the high-current intervals than the low­ the alternation of two- , three-, an4 four-body fusions (and current intervals, and for both modes over time . These ap- possibly even higher) are identifie4 with phase-shifts of the loading with the palladium lattice of the cathode. According to Takahashi's theory, the high heats that he is now seeing come from four-bod� fusion in which deuter­ search done in the early part of this century, which indi­ ons from three surrounding octahepral sites are excited and cated the possibility of such a reaction. "fall into" the tetrahedral site (central to the tetrahedron Contrasting "cold" to "hot" fusion, he said: "We were formed by four octahedral sites) �n which a deuteron may before a high-concentration plasma, in an ordered state . also be located. In experiment D �ere are indications that, 3 This plasma has a low temperature but a high energy, as as excess power density neared lqo watts/cm , there was a opposed to the disordered state �hich we find in hot fu­ falloff of neutron emissions which ;was negatively correlated sion. Well, you have a choice when you observe some­ to the increase in power generation. thing like this. You can say it is inconvenient and ignore Already in the C-series, Tak�ashi believes that two-, it, or you can investigate it. We were skeptical, so we three-, and four-body fusions wert':! occurring, with the latter were not surprised by the skepticism of others . The lead­ two beginning to play major rolest In experiment D, he ex­ ing opinion of many at the time was that, as the experi­ plains the high heats as the promillFnce of four-body fusion. ments improved, the phenomenon would just disappear. In the two-month period from �anuarythrough February, Instead, evidence has increased in favor of cold fusion." according to his original preliminaJiYestimat es, the total input Stanley Pons continued with the same theme, re­ energy was approximately 250 �gajoules; the total ouput marking that the skepticism came from the fact that the energy was 730 MJ . This gave an excess energy total of observations contradicted "modem theory," and therefore 480 MJ . Power input on average [was 50 watts, and excess scientists believed the experiments to be wrong. "This," power was about 96 watts, whiclp. would scale to approxi­ 3 he said, "is the antithesis of modem science, which is mately 200 watts/cm • After 40 d�ys, Dr. Takahashi and his based upon the observation of phenomena. When we ob­ collaborators tried to terminatethe rexperiment. They stopped served one watt per cubic centimeter, we had an interest­ electrolysis while it was in the loW mode for about 10 min­ ing scientific curiosity, but today , with one kilowatt per utes, but as we noted above, to thpir horror, they found that cubic centimeter of energy produced, which has been ob­ the cell temperature began to slqwly increase. Fearing an served in various labs, we have something with technolog­ accident such as occurred at SRI, �hey resumed electrolysis. ical implications. Now we have to see if we can contain They have been steadily decreasipg the current since then, and sustain this. This will be a hard road, but we cannot and now believe that the experi�ent is sufficiently under say that it will not happen. "-Carol White control so that they can bring it sllfely to an end, and move on to new tests of their theory .

ElK March 20, 1992 Feature 37 �ITillInternational

WillAng lo-Americans or Israel strike Iraq first?

by Joseph Brewda and Mark Burdman

Bloody regional and civil wars , and U.S. strikes targeting "If that proves to be necessary, the answer is yes, I would the broad region including the Mideast, North Africa, West support it," Major told BBC. British officialssaid on March 6. Asia, the Indian subcontinent, and Central Asia, are on the that Major agreed in a telephone conversation with President Anglo-American drawing boards. George Bush that day, that they would use whatever means In a March 8 interview, imprisoned Democratic presiden­ necessary to force Iraqi leader Saddam Hussein to comply tial candidate Lyndon LaRouche noted that the Anglo-Amer­ with the U.N. resolution. ican elite fears that the nations of eastern Europe and the Bush and Major are both facing electoral challenges this Community of Independent States (CIS) might "align them­ year, at a time when the collapse of the American and British selves in common cause with the nations of South America, economies is thoroughly undermining their credibility with the Africa, and Southern Asia for a global development direc­ electorates. Since the Britishelection, now officiallyannounced tion, a new global economic order based on the right of all for April 9, is the earlier one, British pressure for such a move nations to economic development and technological prog­ may be much stronger than that coming out of Washington. ress ." For this reason, the Anglo-Americans are determined Informed estimates are that Bush would prefer a "summer sur­ to inflict "virtual economic scorched-earth conditions" on prise," in late June or in July, whether it be an attack on Iraq eastern Europe (see page 8). or a strike against Cuba or North Korea, since that would be For similar reasons, the Anglo-Americans are intent on closer in time to the November elections, and the "psychologi­ destroying those Asian and African regions contiguous to cal effect" would not have worn off by November. Europe that might be the first to benefitfrom such an alliance An air strike against Iraq might also be timed with a CIA! involving the now reunified Germany, eastern Europe, and British intelligence-fostered Kurdish uprising in northern the Third World, he observed. Iraq, and a related Shiite uprising in the south. In January, CIA director Robert Gates toured the region to prepare for Drumbeat against Iraq . this. In early March, the Iraqi newspaper Babel, owned by Following the appearance of Iraqi Deputy Prime Minister Saddam Hussein's son, warned of a "foreign conspiracy" Tariq Aziz at the U.N. Security Council on March 11, British targeting both regions. "It is a time bomb ready to explode and American officialsdelivered explicit warnings that new whenever the foreigners decide," the paper said. The recent strikes against Iraq are in the offing, perhaps within days. release of a U.N. report which asserts that Iraq's alleged The pretext for the strikes would be Iraq's alleged failure abuse of Kurds and Shiites represents the worst human rights to comply with U.N. Resolution 687, which requires Iraq to violations since those committed by Nazi Germany, is in­ destroy its "weapons of mass destruction." Iraq has asked tended to provide propagandistic cover for this plan. that some of its military industry be instead converted to Another strike might target Libya under the claim, for vitally needed civilian production. British Prime Minister which no evidence has been provided, that the Libyan gov­ John Major had threatened on March 8 that he would support ernmentwas responsible for blowing up Pan American Flight bombardment of Iraq if Iraq continues to make this request. 103 over Lockerbie, Scotland in December 1988.

38 International EIR March 20, 1992 The Israeli 'breakaway ally' "peacekeeping" interventions, either under U.N. or NATO According to one highly informed British strategist who auspices. just held consultations in Washington with senior American The most important and dangerous war developing in the Mideast experts , there are two schools of thought about how region is that between the former Soviet republics of Armenia to strike at Iraq , one favoring an American-led action and the and Azerbaidzhan. The apple of discord between the two other an Israeli operation. "I understand there is a project states is the Armenian enclave of Nagorno-Karabakh within under which President Bush would undertake to remove Sad­ Azeri territory, which both states claim, although so far dam, by whatever means are available, between now and the fighting has been restricted to Armenians in the enclave and American election in November, and this would be carried the Azeris. The borders were drawn by Josef Stalin in 1923 out under U.N. auspices," he said. "However, the assess­ to provide a ready means to inflame each state against the ment of informed Americans is that it might all be done a other, rather than against Moscow. The March installation different way. Israel might try to offer to carry out an anti­ of former Soviet Foreign Minister Eduard Shevardnadze as Saddam strike on their own. The U.S., as it were, would chief of the ruling State Council in neighboring Georgia, denounce it, in the U.N. and so on, but the denunciation gives those elements in the Russian!establishment tied to the would be for the public view, while privately, American West the means to arrange for the j�int destabilization of the officials would be jolly pleased." region. Recent high-profilespats between U . S. Secretary ofState Over the near term, neighboring Turkey might be drawn James Baker and the Israeli governmentostensibly over bitter into the war on the side of the Turkic Azeris. Just how danger­ differences concerning U.S. housing loan guarantees, and ous the situation might soon become is shown by remarks by related assertions that Baker has made anti-Semitic remarks Turkish President Turgut Ozal on March 6 that the govern­ in cabinet meetings, are largely designed to provide the Unit­ ment of Prime Minister Suleyman ,Demirel, should aid the ed States with justificationfor claiming that the defiantIsrael Azeris by "scaring the Armenians." is out of control. For the first time, neighboring Iran is depicting the con­ On March 8, Israeli Health Minister Ehud Olmert told an flictin religious terms. On March 2:,Jomhuri Eslami, one of Israeli press conference that his country might strike North Iran's leading newspapers, denounced the Iranian govern­ Korean ships carrying missiles to Iran on its own, regardless ment for remaining "indifferent" tp "massacres" of Azeris of what the United States does. allegedly conducted by the Armenians. Iran had responsibili­ On March 5, Israeli Chief of Staff Ehud Barak threatened ties "dictated by Islamic solidarity when Muslims are massa­ independent Israeli raids against Iraq , because, he claimed, cred," it said. It has long been an Anglo-American objective Iraq still has hundreds of Scud missiles and thousands of to trigger a mutually ruinous religiOUSwar between continen­ chemical warheads, and that, despite all the pressure from the tal Europe and the Mideast. United Nations, Baghdad is capable of rapidly relaunching The fact that the now ruling AzeriPopular Front of Azer­ its nuclear program. "There will be no peace whatsoever baidzhan defines Azerbaidzhan a$ Turkish, and also lays between Israel and its neighbors as long as Saddam Hussein claims to Iranian Azerbaidzhan, ahlo shows the potential of remains in power," Barak told the Israeli Army magazine the conflictspreading to involve T�rkey and Iran. Bamahane. Another way of spreading wars in the region is through The Israelis may also be planning to invade Lebanon. the Anglo-Americans' "Kurdish card." The Kurds live in a On March 5, the head of the Lebanese delegation to the large contiguous area in Iraq, Turkey , and Iran. The various Washington Mideast "peace talks," Suhayl Shammas, told Kurdish liberation organizations are controlled by the Anglo­ the press that the leader of the Israeli team negotiating with Americans and Israel. Lebanon, Uri Lubroni, threatened a new invasion, if the On March 7, Gen. Teoman Koman, the head of Turkish Lebanese did not eliminate the Hezbollah. In February , Israel intelligence, reported, "We have .nformation that the PKK assassinated the head of that Iranian-backed organization, [Kurdish Workers Party] will launch an uprising around the Sheikh Abbas Musawi, and then launched a 24-hour invasion middle of March." "They will not succeed," he said, but it of Lebanon shooting up U.N. peacekeeping forces in the will take time to suppress it. The Kurds claim about two­ process. Although one U.N. soldier died, the United States fifthsof Turkish soil. has refused to condemn the invasion. On March 3, Turkish Prime Minister Demirel told Parlia­ On March 6, thesecurity chief of Israel's embassy in Anka­ ment that he had warned the Syrian ambassador to Turkey ra, Turkey, was assassinated by a carbomb, a half-mile fromthe about continuing to support PKK rebel training camps in presidential palace and across the streetfrom the army barracks. Lebanon's Syrian-controlled Bekaa Valley. "I told him this Israeli media claim, without evidence, that the Hezbollah was was not a friendly situation," he' said. It may be that the responsible, leading to further calls for reprisal. Anglo-Americans seek to provoke a Turkish war with Syria The Anglo-Americans are fostering other civil and re­ to finish offthe only Arab state that represents any military gional wars , in part intended to provide a pretext for future threat to Israel.

EIR March 20, 1992 International 39 and assure them of the Bush administration's continued sup­ port. According to El Diario de Caracas, "there exists pro­ found concern in Washington over the 'extremely delicate situation Venezuela is facing.' " Bush, according to interna­ Pots and panscould tional analysts cited by El Diario de Caracas, will do whatev­ er he can "tokeep Venezuela within the democratic orbit." bring downthe IMF At the same time, the Bush government is sending its Assistant Treasury Secretary David Mulford, otherwise by Val erie Rush known as "Mr. IMF' in Washington, to Brazil, on what has been strikingly dubbed "a political visit." The government of Fernando Collor de Mello in Brazil, which has committed "The Pots Shook the Country," blared the headline of one itself to imposing IMF austerity measures comparable to Venezuelan daily, in the aftermath of the March 1 0 "pots and those which have triggered the Venezuelan protests, is also pans" protest demonstration which demanded the resignation on increasingly shaky ground. Brazilian Foreign Minister of Venezuelan President Carlos Andres Perez and an end to Francisco Rezek was forced to publicly warnthat the resigna­ his International Monetary Fund (IMF) austerity policies. tion of Venezuelan President Perez would be tantamount to Said another headline, "All of Venezuela Shouts: Get Out, a coup, something which Brazil opposes "in every country Carlos Andres!" in Latin America." Across the country, from the rich "country club" neigh­ borhood to the poorest slums, Venezuela's population heed­ 'One, two, many Venezuelas?' ed the call of the imprisoned military leaders of last month's But the ferment continues to spread. In Bolivia, 10,000 suppressed coup attempt to come out at 10 p.m. and bang students and workers marched in La Paz in early March to pots and pans, blow whistles, tum lights on and off, and sing protest that government's IMF-dictated economic measures, the Venezuelan national anthem. On-the-ground observers and EFE news service is reporting that a "group of discontent­ in Caracas say the noise was "deafening," that entire build­ ed military officers" with the sympathies of the Bolivian ings had set up loudspeakers to blare their protest, and that Labor Confederation could undertake "an action similar to the city was in a total uproar. Every state in the country the one attempted recently in Venezuela." reported the same, with the population exhilarated by the In Peru, the Fujimori government was just forced to roll extent of the protest. back a number of drastic austerity measures personally de­ This "spontaneous plebiscite against Perez," as the his­ manded by IMF director Michel Camdessus, after auniversal toric protest demonstration has been dubbed by Reuters news outcry against them prompted a split in Fujimori's cabinet service, marks the firststage in what analysts now admit is a and forced the Peruvian Congress to consider declaring the revolutionary upsurge with the potential to light similar fires measures unconstitutional. In Honduras, former President across the continent. In countries from Colombia to Brazil, Jose Ascona urged that country's currenthead of state Rafael Peru to Honduras, protests against the IMF's destruction of Callejas to "follow the example of his Venezuelan colleague" the continent are now surfacing from both civilian and mili­ Perez, in "modifying" his monetarist economic policies. tary layers. The Cesar Gaviria government in Colombia, which just nervously granted an unprecedented 45% wage hike to the 'Democratic' thuggery Armed Forces' middle-level officer corps, has imposed a In response to this outpouring of opposition to his govern­ total news blackout on the Venezuelan "pots and pans" dem­ ment, President Perez deployed street thugs to stage provoca­ onstration. President Gaviria is reportedly on the verge of tions and threaten violence. Several scores of people were introducing a new IMF "shock package" similar to the Peru­ wounded and arrested, and at least eight people-including vian one, and is clearly worried about the implications. He two children-were killed by individuals said to be police has every reason to be nervous, following the disastrous provocateurs. Early morning rallies of flag-bearing citizens mid-term elections March 8, which were boycotted by an were dispersed with water cannons and tear gas. Latest re­ unprecedented 80% of the Colombian electorate as their own ports are that the Perez governmenthas ordered police raids silent "day of protest." against trade unions, town hall assemblies, and other popular Just two days before the Colombian election, newspaper rallying points. editor Fidel Cano wrote in the daily El Espectador that the If Perez is nervous, his sponsors in Washington-who Gaviria governmentw as "incapable of confronting the disas­ managed to keep all word of the Venezuelan demonstrations ter it has caused," and said "a new governmentis required. out of the U. S. press-are even more so. U.S. Ambassador Widespread rejection of the government's policies, declared to the Organization of American States Luigi Einaudi was Cano bluntly, requires "the appointment of a new President sent to Caracas March 13, to meet with governmentofficials by means of Congress or a plebiscite."

40 International ElK March 20, 1992 u. s. targets Peru's Armed Forces in bid to install a'n arco-democracy' by Manuel HIdalgo

Peru underwent yet another bloodbath, when the narco-ter­ be performed by the same Perez de Cuellar (now returned to rorist Shining Path called an "armed strike" for Feb. 14. In Peru) , or perhaps by the leftist machinery of the Sao Paulo the name of "propaganda" for the event, Shining Path carried Forum, led by Sandinista Daniel Ortega and by the Brazilian out a series of attacks throughout the previous week which Luiz Ignacio da Silva ("Lula"). led to at least 10 deaths, including the explosion of a car­ It is, perhaps, no coincidence that Peru has been chosen bomb against the U.S. ambassador's residence in Lima, for this next laboratory "peace" experiment. The man who which killed two. On the day of the "strike," Shining Path served as the U.N. mediator for El Salvador was Alvaro de blew up a military bus carrying 16 soldiers; 6 were killed. Soto, brother of George Bush's favorite "free trade econo­ One day afterthe strike, the country learned that a"selec­ mist" Hernando de Soto. HernandQ was until recently a top tive annihilation" team of Shining Path terrorists had assassi­ adviser to the Peruvian government of Alberto Fujimori , nated Maria Elena Moyano, the popular mayor of Villa El and heads the "informal economy" think tank known as the Salvador and coordinator of emergency food programs for Institute for Liberty and Democracy (ILD), which has offices Lima's poor. Months earlier, Moyano had organized protests throughout Ibero-America, the largest being in Peru and El when Shining Path had dynamited one of these "people's Salvador. The pro-drug and free trade prescriptions of De kitchens" and had begun to assassinate community leaders Soto's ILD dovetail precisely with ,the efforts of the Anglo­ who defiedthem . American financial establishment to install a "narco-democ­ Shining Path's "people's war," which has produced racy" in Peru , for which neighboring Colombia offers the 24,000 dead, 4,000 missing, and $20 billion in losses since first such model . its beginning a decade ago, can only be compared to the deliberate extermination policies of the Pol Pot regime in Campaign to discredit the I1I1ilitary Cambodia. Shining Path controls nearly one-third of the na­ In both EI Salvador and Peru , the precondition for the tional territory of Peru , according to reliable sources, and is success of the "peace negotiations" is the destruction of these close to capturing the impoverished slums ("belts of misery") countries' defense forces. As the Bush administration has which surround Lima. These sources say that Shining Path made abundantly clear, it prefers Sbining Path to the Peruvi­ has 50,000 members and 250,000 sympathizers , and that the an Armed Forces. government, in open acknowledgment of its incapacity to The first step in the campaign to discredit and then dis­ stop this subversive advance into Lima, has urged slum member Peru's military were accusations of violations of dwellers to form self-defense squads . human rights by the one-worldist international human rights In the face of this civil war in Peru, the policy of the Bush lobby. In mid- 1991, a group of U. S. congressmen headed administration is surrender to narco-terrorism, disguised as a by Sen. Edward Kennedy (D-Mass.) asked the U.S. govern­ "democratic dialogue" with the forces represented by Shining ment to suspend anti-drug military �id to Peru, on the grounds Path and its terrorist sister organization, the Tupac Amaru of alleged human rights violations by the Peruvian military. Revolutionary Movement (MRTA) . Washington seeks to That campaign was to increase in the following months, with impose upon Peru the same model it so recently used in a series of reports issued by Americas Watch, the Washing­ El Salvador, where "dialogue" with the Farabundo Marti ton Officeon Latin America (WOLA), and Amnesty Interna­ National Liberation Front (FMLN) led to a surrender of half tional. that country to the narco-terrorists-with more to come. To this campaign can be added that of the Human Rights If in EI Salvador the farce was "negotiated" through the Commission (HRC) of the Organiz�tion of American States. ready offices of the United Nations and its former secretary In September 1991, an HRC delegation visited Peru to de­ general , Javier Perez de Cuellar, in Peru 's case that role may nounce the Armed Forces. To gath�r material for their accu-

EIR March 20, 1992 International 41 sations, they visited the prison cells of drug kingpin Reynaldo to be "demilitarized" and placed under civilian control. At Rodriguez (a.k.a. "The Godfather"), Shining Path 's number­ the end of February, leftists and social democrats convinced two leader Osman Morote , and Alberto Galvez Olaechea, the liberals in the Peruvian Congress to approve various the leader of the narco-terrorist MRTA . Galvez asked the modificationsof the National Defense Law. The fightagainst HRC to consider the Tupac Amaru officiallyas a "belligerent narco-terrorism is now under the control of a Unified Pacifi­ force" which "respects the Geneva Convention" on warfare . cation Command, largely civilian in its composition, and On Nov. 18, Amnesty International published an adver­ not under the Armed Forces command as before . The mili­ tisement in the New York Times, accusing the Peruvian mili­ tary has also lost its power to operate in emergency zones, tary of being the worst violators of human rights in the world. again thanks to the human rights lobbyists, while President Since then, Amnesty has been conducting an international Fujimori has won the authority to choose military command­ campaign to discredit the Peruvian Armed Forces. At the ers , eliminating any and all institutional autonomy. same time, the Peruvian government is going to be "tried" before the Inter-American Court of Human Rights in Costa The scenario of a 'dialogue' Rica, on charges of permitting extra-legal executions of pris­ At the same time, the campaign to legalize the narco­ oners . The "trial" is expected to indict a leading Peruvian terrorist MRTA escalates. The argument offered is that, be­ military officer. cause of the bloodthirsty nature of the Shining Path , it is the The U.S. establishment also seeks to blame the Peruvian Tupac Amaru which offers the best likelihood of following military for the failure of its hypocritical "Andean war on the path of the now-legalized Salvadoran FMLN or the Co­ drugs." On Nov. 11, U.S. Rep. Robert Torricelli (D-N.J.) lombian M -19. From the leftist followers of Liberation The­ told the New York Times that the Peruvian military and police ology, to liberal publications such as La Republica, Expreso, forces are "thoroughly corrupt," since instead of fightingthe and Caretas, there appears to be a competition as to who can drug smugglers in the Upper Huallaga Valley, they wete best flatter the MRTA with offers of "dialogue." allegedly permitting the take-off of drug-laden airplanes from The MRTA is playing its part to a tee. In September official airports . The same argument was used by Hernando 1991, the MRTA bankrolled the so-called Free Fatherland de Soto as the pretext for his recent resignation from his drug Movement as its legal front, with a program for a "great advisory post. national dialogue." The only problem is that this movement The U.S. State Department has not hesitated to use the doesn't seem to be able to shake its terrorist habits, and has matter of military aid-and especially equipment and spare sought to impose its "dialogue" program by assassinating parts-as blackmail to force the government to pursue a Andres Sosa, an orthodox Marxist leader, and threatening "demilitarization" strategy. The initial suspension of U.S. other dissidents . According to the Lima daily La Republica military aid to Peru served to increase pressures by the State of Jan. 27, the fight is "among those who seek to remain a Department to get the Peruvian government to tie the hands small militarist and anarchic group, and those who pose the of the military in the war on subversion. Defense Minister end of armed struggle and conversion to legal political action. Jose Malca had to accept, among other conditions, the annul­ A National Congress of the MRTA will soon defineits path." ment of military judicial jurisdiction over human rights cases When former U.N. Secretary General Perez de Cuellar and the entrance of governmentprosecutors into the barracks returnedto Peru in early January, the liberal press hailed him and military detention centers . The military is also at a as "the great Pacifier," and he has already opened his doors tremendous disadvantage on the legal front, in the face of to initiating a Salvador-style dialogue in Peru . On Feb . 10, the vast and powerful legal apparatus of the narco-terrorists, his aide Alvaro de Soto was interviewed by La Republica. who manage to free subversives as fast as they are captured. According to De Soto, still a U.N. official , the problem with The suspension of U.S. aid has left the Armed Forces Peru is that "its government is not prepared to have a dialogue defenseless against subversion. When the Armed Forces while the armed groups are refusing to lay down their weap­ last year asked Economics Minister Carlos Bologna for an ons." But he is hopeful that this will change in the future. emergency outlay of $200 million, the London Economist There are other contenders for the "great Pacifier" role . reported last Oct. 12 that Peru could not afford the lUXUry On March 1, former Nicaraguan President Daniel Ortegatold of spending that kind of money and throwing overboard the the Lima press, "I am prepared to become an interlocutor austerity program imposed by the International Monetary between the Peruvian guerrillas and the democratic forces of Fund (IMF) . Needless to say, Bologna denied the money, the country . . . . As I participated in the El Salvador and and then Defense Minister Jorge Torres Aciego was forced Guatemala negotiations, so, too, would I be ready to make to resign. peace a reality here." Ortega simultaneously acknowledged The Fujimori government has refused to defend any sort that application of IMF and World Bank austerity prescrip­ of anti-subversive strategy, and has instead let spokesmen tions would need to be applied, as he applied them in Nicara­ of the human rights lobby undermine the legal basis of a gua, since "that is the only solution to the lack of financial serious anti-subversion fight, with the argument that it needs oxygen."

42 International EIR March 20, 1992 cording to the recently published Argentine book Operation Condor II. the missile's destruction was one of the conditions demanded by Great Britain for reestablishing diplomatic rela­ tions with Argentina following the Malvinas War-which Argentina agrees·t o explains Di Tella's prominent role in the matter. u.s. applies 'dual-use' weapon halthigh technology In February ofthis year, at the request of the Bush admin­ istration, the Argentine government halted a shipment of machine tools and piping from the INV AP company to Iran. by Cynthia Rush INV AP is one of the only remaining companies to still pro­ duce nuclear technology. Only hours before the material was Argentine Foreign Minister Guido Di Tella, who has never to be shipped to Teheran , the Foreign Ministry classified it hidden his loyalties to the British Foreign Office, is waging as "dual use" technology, and ordered the shipment halted. an unprecedented campaign to dismantle once and for all The daily Clarin reported March 2 that U.S. Ambassador the scientific and technological achievements of the past 50 Terence Todman had sent a letter expressing Washington's years, particularly the country's nuclear program. The for­ concernthat by going through with the sale, Argentina might eign minister's efforts are directly linked to the Anglo-Amer­ be contributing to the building of the "Iranian bomb." ican political establishment's policy of eliminating the insti­ By failing to fulfill the contract :with Iran, INVAP stands tution of the Armed Forces, which has historically played to lose at least $17 million, and could lose hundreds of mil­ a crucial role in the development of Argentina's scientific lions more if other countries with whom it has similar con­ infrastructure. tracts-Algeria, Egypt, and Turkey-perceive it as an unre­ Beginning with the government of social democrat Raul liable trading partner. The Iranian government, whose trade Alfons{n (1983-89), Argentina's nuclear program came un­ with Argentina is worth $500 million annually, has said it der intense attack, largely through the vehicle of budget cuts will now review its entire trade relationship with the country . dictated by the country's foreign creditors . As a result, the That suits Di Tella just fine. On March 7, he said that program is now practically moribund. But the Oxford-trained countries like Iran, Algeria, Iraq , lqld Cuba are "unreliable," Di Tella, whose family has always represented British finan­ adding that Argentina would only export advanced technolo­ cial interests in Argentina, isn't satisfied with this. He com­ gy to those countries which sign and respect nuclear safe­ plained on March 7 that Argentina had invested "millions of guard agreements. He also promised that Argentina would dollars in the nuclear program and had achieved only certain shortly sign the Tlatelolco non-proliferation treaty, by which technological results." A day earlier, he remarked that "it the Ibero-American continent wouldbe declared a "denucle­ makes no sense to continue with the current path of nuclear arized zone." Carlos Menem likewise said recently that his research and development. " government would submit to the ,related Anglo-American Di Tella and President Carlos Menem are using the Bush demand to sign the Missile Control Technology Regime administration's campaign against "weapons of mass de­ (MCTR). struction" as a pretext to smash whatever scientific capabili­ For this policy to succeed, Di Tella insists that the "mis­ ties Argentina still possesses. The dismantling of the Air sion" of the Armed Forces be redefi�edto cohere with George Force's Condor II missile project, and its transfer to a civilian Bush's "new world order." He recently told the country's agency under the control of the presidency, is one result military leadership that the Armed IForces have become "the of this policy, although according to the March 9 London fundamental tool of the nation's fpreign policy." To prove Financial Times. the U.S. State Department is complaining this, the government has announced it intends to send large that the Argentine Air Force is still withholding information numbers of military men out of tbe country each year-as on the project, "raising concerns about the extent of transfers many as 2,800-to participate in United Nations-sponsored made to a sister-project in Baghdad that was part of Iraq 's peacekeeping forces. nuclear-capable missile development program." The article Not everyone agrees. After h¢aring Di Tella speak on brags that the United States nevertheless had good informa­ the topic , Defense Minister Erman Gonzalez responded that tion on Argentine-Iraqi links in the project, because it "had Armed Forces participation in international peacekeeping a deep-cover agent working in the Condor procurement net­ missions is "subsidiary to their essential mission, which is work in Switzerland and Austria." the preservation of national sovereignty ." Army sources told In early February , the Argentine government allowed the daily La Nacion that "military doctrine views as its first officials from the U.S. National Aeronautic and Space Ad­ priority the defense of Argentine t¢rritory , and as secondary ministration and the U.S. State Department to inspect the actions, missions such as have just been assigned them by Condor project site in Falda del Carmen in C6rdoba. Ac- the Executive branch."

EIR March 20, 1992 International 43 both, he makes clear by the manner in which he presents his Book Review material that he much prefers the freetr aders. He unhappily notes that Argentine nationalism "has a strong isolationist and protectionist current," and that the arguments used by such late 19th-century protectionists as Vicente Fidel L6pez and Carlos Pellegrini, who were influ­ enced by the German-American economist Friedrich List, "still inform Argentine nationalism and are powerful currents in Peronism." He also misses no opportunity to attack the Catholic Church and Argentina's "reactionary"Spanish heri­ Argentine nationalism tage, thus joining the chorus of "Black Legend" advocates which has become increasingly vociferous in this year of the panicsAnglo- Americans SOOth anniversary of the discovery and evangelization of America. by Cynthia Rush With the same racism and condescension displayed so often by many of his colleagues, Shumway portrays Ibero­ American nationalist aspirations as nothing more than an oddball collection of conspiracy theories and delusions of The Inventionof Argentina grandeur, with "no stated doctrine, no creed, no program or by Nicolas Shumway platform. " Universityo f California Press, Berkeley, 1991 325 pages, hardbound, $34.95 Timed with assault on military The timing of the book's publication in late 1991 is not unimportant. Since taking office in July 1989, Argentine A common thread running through many of the books written President Carlos Menem has waged a campaign to eradicate by U . S. academics about Argentina over the past two decades all vestiges of nationalism in his country, particularly within is a visceral hatred of the nationalist tradition which has the Armed Forces, while applying the draconian free market caused so many problems for the foreign, particularly Brit­ and deregulation policies demanded by the International ish, interests which attempted to dominate the country even Monetary Fund (IMP). That campaign intensifiedafter Dec. prior to its independence from Spain. 3, 1990, when nationalist military officers, led by Malvinas Nicolas Shumway, a Spanish professor at Yale Universi­ War hero Col. Mohamed Ali Seineldfn, staged a rebellion ty is no exception to this in his book The Invention of Argenti­ against the Army chief of staff to demand an immediate na. It purports to be a discussion of why Argentina has "failed change in the U. S.-dictated policy of destroying the institu­ as a nation," a topic which the U.S. academic and Washing­ tion of the Armed Forces. ton-based think-tank community never tires of analyzing, Shumway's assertion that Argentine nationalism has "no with almost always the same conclusions. In this work, stated doctrine, no creed" is wishful thinking. Whether civil­ Shumway asserts that the country's problems stem from Ar­ ian or military, this phenomenon has always struck terror gentina's 19th-century intellectuals who, instead of pursuing in the heart of the Anglo-American political establishment. a unifying national ideal based on "consensus and compro­ Testimony to this fact during the 20th century arethe extraor­ mise," devised what the author calls "guiding fictions" or dinary efforts made to discredit and overthrow the 1945-55 opposing concepts of nationhood which could never be rec­ governmentof Gen. Juan Domingo Per6n, whom Shumway onciled with each other. It is this "divisive mind-set" and describes with the typical epithet of "messianic demagogue." "mythology of exclusion," he says, which has prevented In the last century, freemasonic factions allied with the Argentina from becoming a successful nation today. grouping around Giuseppe Mazzini and advocates of British The "divisiveness" to which the Yale professor refers is liberalism spent close to 30 years, beginning in 1827, trying the 19th-century battle between Argentine "liberals"-the to oust the pro-protectionist Juan Manuel de Rosas. They overtly pro-British, pro-free trade backers of Adam Smith­ finallysucceeded in imposing the 1853 Constitution commit­ and the proponents of a nationalist, protectionist school ted to the British system of free trade. which identified the British in particular as the enemy and Even the title of Shumway's book, The Invention of Ar­ viewed Argentina as a potentially great nation capable of gentina, and his phrase "guiding fictions" are revealing. For exerting both continental and internationalleadersh ip. While him, the compelling issues which have motivated Argentine Shumway tells the reader that he intends to objectively exam­ patriots for 200 years-opposition to free trade and British ine the "guiding fictions" representative of each of these and foreign looting, identification with the other nations of groupings, and does provide significant historical detail on lhero-America, and the idea that the nation could aspire to

44 International EIR March 20, 1992 economic and political greatness-are simply not real. "The erned, overregulated economy in the capitalist world" can dark side of this nationalist vision of greatness is its obsession also be attributedto Moreno as well. "Government tampering with conspiracy theories," Shumway explains. "Nationalism with the economy has produced such a morass of regulations, readily admits Argentina's ongoing failure to realize its desti­ industrial subsidies, job protection, �bor rights, price sup­ ny , but only by blaming 'anti-national' Argentines and their ports, artificial exchange rates, state industries, and the like foreign masters who repeatedly thwart Argentina in realizing as to effectively paralyze the economy," he charges. "The her spiritual destiny." justification for such repeated intervention resonates Mor­ eno's desire to domesticate capitalisdtin the name of forced Nationhood is a 'fiction' equality. " Shumway thus reduces the real battles fought out in the 19th century to factional squabbling over competing "myths Defending the Masonry of nationhood" and "guiding fictions"-as if issues such as Where the Yale professor most reveals his ideological sovereignty or economic development were merely mythi­ bias, however, is in his discuss ion of the "Generation of cal. His insistence on this point is not unrelated to the fact '37 ," the Mazzinian faction which, in the name of civilization that the same issues are being fought out today, throughout and "democracy," imposed freetrade and British liberalism lbero-America, as evidenced by the early-February events in on the country following the 1852 overthrow of the protec­ Venezuela. His use of the term "guiding fictions" in fact tionist "barbarian" Juan Manuel de Rosas. The group's two is little more than a gimmick to attack nationalism while most prominent representatives, Domingo Faustino Sar­ presenting the freetrade faction as really not such bad fellows miento and Juan Bautista Alberdi, were unabashed in their after all. defense of Adam Smith and in their vitriolic attacks on Ar­ For example, he references a secret policy document gentina's Spanish heritage, particularly on the role of the written by Mariano Moreno, the British agent who served as CatholicChurch . secretary of the ruling body known as the Primera Junta Shumway provides ample evidence of Alberdi and Sar­ which was set up in 1810 following the declaration of inde­ miento's racism, seen in their plans 'to bring in representa­ pendence from Spain. The document was a mish-mash of tives of Anglo-Saxon culture from northern Europe-not proposals, including the call for a secret police to persecute the darker-skinned peoples of southern Europe-who, they political enemies, a strong state presence in the economy, argued, could rapidly "civilize" the country. Their advocacy and a foreign policy which invited Britain to take over lands of the slogan "to govern is to populate" specifically meant previously owned by Spain. But Shumway insists that Mor­ encouraging immigration of the "energetic" and "practical" eno's crazy plan "transmitted to Argentine discourse a con­ Anglo-Saxons who might cleanse the nation of its alleged cept of political evil still observable in many of Argentina's Spanish tradition of laziness, absolutism, and reaction. ongoing guiding fictions." This is the same'racist drivel ped­ Yet Shumway apologizes for this group, explaining that dled by analysts who claim that Argentines possess some "only the most blindly biased could deny that in the Men of genetic trait of authoritarianism which presumably explains '37 there is much to praise. With inexhaustible energy they the frequent periods of military takeover throughout the and their ideological successors diagnosed the 'barbarism' country's history. of their country, prescribed solutions, and did their best to In the same vein, the professor laboriously insists that hammer Argentina into a 'civilized' country they dreamed Moreno's advocacy of repression and political terrorism has of." In a contrived fash ion, Shumway points to the Genera­ survived as a guiding fiction into the 20th century as reflected tion of '37's tendency to lobby for "drastic cures" to the in the exaggerated use of the word intransigent in the coun­ nation's problems, one he describes as almost a "national try's political lexicon. "The term intransigente ...connotes illness" in Argentina, to warn of what really frightens the principle, morality, and uncompromising defense of truth," Anglo-Americans: "the predisposition throughout modem the author laments, "wherein compromise becomes sellout, Argentine history to accept radical changes, from military and consensus becomes collaboration with enemies. " Behind repression to democracy to messianic populism. . . . It has the silly analogy to Moreno's document is Shumway's undis­ also made the Argentine economy the most experimented guised accusation that Argentina today is a failure because with and manipulated in the world." i certain forces historically maintained a commitment to prin­ Shumway is right to be nervous,. since "radical change" ciples, morality, and truth rather than dealmaking and politi­ is on the agenda for Argentina, and for the rest of lbero­ cal expediency. No doubt he would hold up the abj ect sub­ America, which is fed up with IMF usury. The professor's mission to the IMF by Carlos Menem and other erstwhile last sentence in the book admits this, albeit in his oblique Peronists as an excellent example of "compromise." academic jargon: "I can't help sensing that the competing Professor Shumway also gets to his other complaint, Ar­ myths of nationhood bequeathed by the men who firstinvent­ gentina's tradition of a strong state role in the economy, ed Argentina remain a factor in the c()untry' s frustratedquest absurdly arguing that the existence of the "most overgov- for national realization."

EIR March 20, 1992 International 45 The 'Italianfa ce' of JFK: from Permindex to theMora murder by Sandro Mitromaco

On Feb. 24, Unita, the daily newspaper of the Italian PDS and held for three months despite the biggest police dragnet (Democratic Party of the Left)carried the following five-col­ in Italy's modernhistory , and then found dead under the nose umn page one headline: "Moro Like JFK: A Case Still Open," of the investigators . subtitled, "The state does not want the truth on the kid­ naping-the Red Brigades were directed from the outside." A national coalition Days later, Il Sabato, the conservative Catholic weekly said "It is amazing that a right-wing Catholic publication like to be close to Joseph Cardinal Ratzinger, carried on its cover Il Sabato and a daily like Unita, the paper of the PDS, both the same title: "Moro Like Kennedy," with a huge picture came out with the same title: 'Moro Like Kennedy.' It is of the slain statesman, Aldo Moro, gazing pensively at the astonishing that Agnelli's paper pops up with the same line. picture of President Kennedy. A kicker reads: "In the U. S. a What is happening? Are we going back to the National Coali­ movie accuses the CIA of the Dallas murder. In Italy, Senator tion?" a Roman insider recently said to EIR . Mazzola, deputy defense minister at the time of Moro' s assas­ Both Unita and Il Sabato point the finger at Kissinger. sination, speaks for the firsttime of the mysteries of that case. The first article was written by Gianni Cipriani, co-author, And after 13 years admits that the case is not closed." with his brother Antonio, of the book Limited Sovereignty: A third Italian daily, La Stampa, owned by the powerful Historyof Atlantic Subversion in Italy. It described the report Agnelli family of Fiat, published prominently the same equa­ presented on Feb. 23 to the Parliamentary Investigating Com­ tion: "Moro Like Kennedy"! mittee on Massacres and Terrorism. The report was prepared Aldo Moro, as EIR readers know, was the Christian Dem­ by a group of lawmakers including Francesco Macis of the ocratic statesman who was kidnaped by the Red Brigades on PDS and Luigi Granelli of the Christian Democrats, and March 16, 1978 in downtown Rome and held for a hundred stressed that the Moro case is "still open." In 41 pages, the days until his bullet-riddled body was found in the trunk of congressmen underline that important evidence and records a car, a few minutes away from the national office of the on terrorism are missing-including records on the Moro ruling Christian Democracy. case-and that the Red Brigades, far from being an indepen­ Moro, the most important Italian political leader at that dent terrorist organization, was just a tool. A few days earlier, time, had been the architect of a "Government of National the chairman of the committee, Senator Gualtieri, had public­ Solidarity," inaugurated on the day of the kidnaping. This ly denounced NATO's Gladio network as "illegal." formula was aimed at stabilizing the country after 10 years Gladio, a supersecret organization created after World of subversion, terrorism, and violence. It was a formula that War II, was supposed to be a "stay behind" paramilitary Henry Kissinger and the Anglo-American elite opposed with network able to unleash irregular warfare in case of Soviet all their might. Moro personally was threatened repeatedly invasion of western Europe. But the organization was used by Kissinger, and had abandoned political life. The new to create terrorist gangs, according to many accounts, both government, inaugurated on March 16, 1978, was his first right-wing and left-wing, aimed at destabilizing countriesto big political undertaking aftera period of inactivity provoked keep them under control. Aldo Moro, according to these by his fear of exposing his family to danger. accounts, was threatening to establish a government solid The role of Kissinger in the killing of Moro became the enough to be independent politically and, especially, finan­ focus of investigations that started with a legal petition pre­ cially, from the Anglo-Americans and from Moscow. In a sented to the Tribunal of Rome by Italian associates of Lyn­ different situation, Kennedy had represented the same don LaRouche. Italian magistrates tried to interrogate Kis­ "danger." singer, in vain. After several judicial inquiries, journalistic investigations, and a series of revelations, it now appears Permindex and the Dulles brothers inconceivable that the most powerful politician in Italy could On Feb. 19, Antonio Cipriani had published in Unita an have been kidnaped in Rome by a gang of student-terrorists original review of director Oliver Stone's film "JFK." In a

46 . International EIR March 20, 1992 long feature , the investigative journalistbrought back to light The "oil war" is also the center of the interview given by the story of Permindex and its Italian affiliate,Centro Mondi­ Christian Democrat Sen. Francesco Mazzola to II Sabato. ale Commerciale (CMC). The only defendant in the New published under the headline "Moro Like Kennedy." Orleans trial for conspiring to assassinate President Kennedy When Mazzola, the vice chairman of the Christian Demo­ was Clay Shaw, a high official of both Permindex and CMC, cratic caucus in the Senate, was asked whether the "differ­ as the film mentions. Cipriani went back to the Rome connec­ ences between Moro and Kissinger qoncerned above all the tion and dug into it. independent policy of the Italian leaders toward the Arab The article sparked an electrifying response from many countries," he stated: "Yes, for sure tbat was a point of differ­ sides of the Italian political spectrum. According to reliable ence. Also because at the end, at the center of the discussion, reports , several different researchersbegan looking for a trail there was the question of oil supplies for our country . And that would link the old Permindex to more recent destabiliza­ to have an independent policy in this ,field would have meant tion capabilities, including drugs, mafia, and terrorism. to establish links with the Arab countries. . . . Kissinger "There was also an Italian connection in the only trial for surely did not look with favor on the strengthening of our the Kennedy murder ," Antonio Cipriani wrote . "By accusing policy toward the Arab countries. Besides, in the United Clay Shaw of New Orleans, District Attorney Jim Garrison States the pro-Israeli lobby has always had a dominating pointed his accusing finger against the man who, from 1958 position. . . . I believe that this has been the issue that to 1962, represented the CIA in Rome. Not only that: Shaw prompted the U.S. decision to obstruct Moro's political de­ was a boss in two international companies, Permindex and sign. Even more: In my opinion, the key to many mysteries CMC, that were managing the Rome Fair in those years . can be found in the battle for oil. " Looking into the names of the members of the board, one Which mysteries? "I came up with no logical explanation discovers a network of agents of the British, American, and for the massacres that happened in Italy." Senator Mazzola Italian secret services, tied to the representatives of royal ventures to state that both the United States and U.S.S.R. families . And de Gaulle stated: They financed the OAS in were determined to keep Moro's plan from implementation, order to kill me ." and that both the KGB and CIA are responsible for the terror­ In his information-packed article, Cipriani publishes a ism that hit Italy. "I always thought that terrorism was the secret document, signed "Dulles," that "shut down any inves­ result of the coincidence between these terrorist groups that tigation [by U. S. personnel at any level] of Permindex. " The conceived of making the communistirevolution and those of Dulles brothers Allen and John Foster were respectively the the fourth directorate of the KGB, the section of the Soviet director of the CIA and U.S. secretary of state . "What did secret services in charge of the destabilization of the West. Dulles write? That U.S. diplomatic offices abroad should . . . Terrorism was bornfor its own �asons, that were differ­ help Permindex, because it operated in harmony with the ent from country to country, but for sure its birth and its department, in other words , people should stop investigating activities were encouraged and helped in this plan of destabi­ these economic groups ." lization that the KGB implemented in those years." Cipriani describes the charges by French President So the East was to blame for terrorism? "Certainly, but Charles de Gaulle, who accused Permindex of being a tool not alone. I am convinced that the United States watched and of the Anglo-American intelligence agency to kill him (this let it happen. In a second phase, the help has been over­ was why de Gaulle took France out of the NATO military whelming." alliance), and also the implications for the October 1962 Mazzola, who as deputy defense minister in charge of assassination of Enrico Mattei, the president of AGIP, the the Navy took part in the key meetings of the "crisis commit­ Italian oil company. tee" set up to coordinate the search for Moro, wrote detailed notes on those discussions. The senator makes a point of Oil war against the Seven Sisters stating that twice, unknown thieves hadbroken into his office When Mattei died-his plane was sabotaged and crashed "without stealing anything. Maybe looking for papers. " near Milan-his independent oil company was engaged in a One of the issues in Mazzola's papers could be the story deadly fightwith the Seven Sisters (the Anglo-Dutch-Ameri­ of Steve Pieczenik, a "Kissinger man," according to II Saba­ can companies) all over the Third World . Mattei was explicit to. a deputy assistant secretary of state sent to Italy on April about his aim: to give Italy an adequate source of cheap 7, 1978, just 22 days after Moro was abducted. He was energy. For him this was the sine qua non condition, if Italy chief of the State Department's anti-terrorist unit. Pieczenik, wanted to be independent and prosperous. His challenge had probably on the basis of secret clauses dating back to Yalta, broken the monopoly of the Seven Sisters , to establish direct took charge of the investigations. Days before the martyred contacts with several Third World countries , and to use the body of Moro was found in the center of Rome , Pieczenik growing power of his company to invest in modem technolo­ left Italy. Today the State Departqtent apparently doesn't gy in the oil-producing countries and to train thousands of have any public record on him, aad not a clue as to his Third World scientists and technicians. whereabouts.

ElK March 20, 1992 International 47 Italy's elections: Will theTr ilateral Commission's dream come true? by Leonardo Servadio

On April 5, there will be new elections in Italy. The electoral will be excluded from the construction of Europe; this will battle has been ongoing for months now, with old and new damage Europe, and will damage Italy." scandals emerging and re-emerging every day. But it is not The Italian public debt has reached unprecedented the usual election campaign; some have compared it to the heights. The current account deficitin 1990 represented 11% 1948 elections, which saw a frontal clash between the Popu­ of the Gross National Product, or 143,815 billion liras; the lar Front of the Communist and Socialist parties on the one total public debt toward the end of 1991 was 1,440,963 bil­ side, and the Christian Democracy and its allies on the other. lion liras (over $1 trillion), well above 100% of GNP, with At that time, the issue was whether Italy would stay with the a tendency to double every 10 years. "westernworld ," orgo with the Soviet Union. Now, the issue The argument of those who propose the "presidential" is what kind of institutional change Italy should undergo. system is that the "parliamentary" system necessarily leads The most drastic changes, in the direction of a "presiden­ to an inability to control public expenses. Since the "presi­ tial" system (Italy, since the end of World War II, has been dentialists" can hardly ignore the economic crisis in the governed by a parliamentary system), are called for by a "presidential" United States, it is clear that their aim is not variety of forces which include President Francesco Cossiga; really to "save" the economy at all, but to impose a political the Republican Party of Giorgio La Malfa; the Socialist Party change. Italy needs a "thin but effective government," said of Bettino Craxi; and the emerging "Leagues" (led by the Dahrendorf in his interview, calling for a change to be effect­ North League of Umberto Bossi), which since the 1990 local ed at the political level: "The Italian Republican Party repre­ elections in Lombardy, the country's richest and most popu­ sents one such source of ferment for change, and I wish them lous region, has attained as much electoral strength as the success." His interview was published on the day of the Christian Democracy. Changes of a more limited scope are Republican Party congress. proposed by the Christian Democracy and by the former The heavily Anglophile Republican Party stayed out of Communist Party, now called the Party of the Democratic the current government, led by Giulio Andreotti; it was quite Left (PDS). strange that the Republicans decided to do so in 1990, when All the changes proposed go in the direction of strength­ this government was created, since they have been the most ening "executive power"; but the "presidential" option would consistent ally of the Christian Democrats in the government require a total change in the political structure of the country, ever since the early postwar period. The Republican Party and aims quite openly at excluding from the governmentthe represents some 3% of the electorate, and it has definitely Christian Democracy, which has been, in part, the political no possibility of becoming an "alternative" to the Christian instrument of the Catholic Church. Therein lies the crux of Democracy (DC). Why pick a fightwith the party with which the matter, rather than in the formal mechanisms of govern­ they have been coalition partners for so many years? Yet ment per se. during the past year, La Malfa, the leader of the Republican Party, has continuously attacked the DC. The economic issues In an interview published by the daily La Repubblica at The Trilateral strategy the end of February, Prof. Ralf Dahrendorf, the renowned In the summer of 1983, the Trilateral Commission met "political scientist" of Oxford, said: "In order to have a in Rome, and analyzed the political situation in Italy. The healthy economy, countries must have a low inflation rate, commission established that the Italian political system was adequate interest rates, and, above all, a public debt and a too "blocked," since it was centered on the Christian Democ­ budget deficit of acceptable dimensions. It is precisely in racy. This should be changed, they said, with the introduc­ these areas that Italy, together with Belgium, has grave diffi­ tion of a system of "alternation." But Italy does not have two culties. And I believe that, if these difficulties remain, Italy big political entities, like the United States does; there are

48 International EIR March 20, 1992 three , the Trilaterals concluded: a Catholic pole, which should continue to be represented by a smaller DC; a Socialist pole, which should be constituted by an alliance between the Socialist Party (PSI) and the Communist Party (then the PCI, Green Queen supports now the PDS), with the last in a subordinate position; and a "lay" pole, including all the other non-Catholic forces, led Earth by the Republican Party . The Republican Party in Italy is SummIt considered the party of "money"--ofthe banks. by Mark Burdman With the collapse of the communist system in 1989-90, evidently the conditions required by the Trilateral Commis­ sion started to be realized. The Communist Party started to Britain's Queen Elizabeth 11 has taken the unusual step of lose votes, and everybody now expects that with the new issuing a statement, in her own namd , supporting the June 1- elections, it will be overtaken by the Socialist Party . Already , 12 U.N. Conference on the Enviro ment and Development important local governments have been formed in Milan and in Brazil, the so-called Earth sumrryt or Eco-92. The occa­ Brescia (two leading industrial cities in the north of Italy), sion was the March 9 annual Commonwealth Day Message, thanks to some important representatives of the PDS , who in which Her Majesty, speaking in �er capacity as "Head of decided to join the PSI, thus giving that party enough strength the Commonwealth," called on the Fommonwealth nations to create governments in coalition with the DC. The PDS is to mobilize to ensure the success of the Rio event. still the second-largest party in Italy. The Queen's message is inclusi+ly noteworthy because The DC also started to lose votes, at least in northern of her explicit endorsement of the c

A cultural issue Both the Italian Church and the Vatican have, through their press, criticized Cossiga repeatedly. It is not new for the DC to come under attack from a variety of forces and for it, in order to defend its positions, to call on the support of the communists. What makes the attack particularly violent this time, is that it is happening in a cultural context which is highly degraded, where the principles of morality which go with a Christian vision of life have been largely forgotten by the population. The dominating culture is "lay," consum­ erist, and hedonistic . It is significant in this regard that Italy now has a fertility rate of approximately 1.3 children per woman: a rate of reproduction well below zero . People prefer to spend their money on new cars, than on children. [t is in the context of this new hedonistic culture that the Republican Party entertains the Trilateral Commission's dream, to defeat Promoters of the "green" agenda: the Christian Democracy. Bush at the While House, May 1991 .

EIR March 20, 1992 International 49 establishment's nervousness that the Earth Summit is shaping up to be a gigantic flop. In the past days and weeks, the Documentation nations of the southern hemisphere have been increasingly vocal in denouncing the machinations around the summit as aimed at denying them the right to development and reinforc­ The fo llowing is the text of the Queen's March 9 Common­ ing the power of northern nations over the South's destiny, wealth Day Message 1992 : in a new "eco-imperialism." Some of the vocal criticisms have come from nations like Malaysia and India, which are On this Commonwealth Day I ask you to remember that we themselves members of the Commonwealth. share this world with many other living things. The Earth is a gift to us all, whoever we are , wherever we live. We have Economic concerns growing but one planet and all life on it is interdependent. Our Com­ Another factor which could potentially torpedo the eco­ monwealth is a partnership of 50 nations and we are responsi­ logical extravaganza is that the issue of economic depression ble for one-third of this planet. We all share the task of has taken supremacy over that of the environment in many ensuring that our world will remain fitfor life and capable of countries, especially in those, including Britain, where elec­ sustaining us and those who will come after us. tions are being held in the next weeks. While "green" issues For too long our natural environment has been taken for were a high-profile subjectin Britain as recently as two years granted. It is now only too evident that we have to take serious ago, none of the main parties competing in the upcoming steps to make certain that we cause no further destruction, nor elections is willing to focus on the subject, when voters are permanently degrade the verynatural resources on which we concerned with the wreckage of Britain's economy. depend. For example, unless we take action now to halt the The political panic in the British establishment about the rise in global temperatures, rising sea levels will threaten the potential collapse of the Rio gathering was further evidenced very existence of several island and low-lying Common­ two days afterthe Queen's message, in a signed commentary wealth countries. in the London Times by Michael Heseltine, British minister The United Nations Conference on Environment and De­ of the environment. Sparing no bombast, Heseltine intoned velopment will be held later this year to draw attention to the that "the future of our planet will be decided at Rio this many environmental problems that we have either inherited summer," and that "Britain is leading the world debate on or created for ourselves. At this conference, and in many the environment." He called for the preparations for the sum­ other ways, Commonwealth countries can make significant mit to be "awe-inspiring," and stressed the "transcending contributions. Together we represent a wide variety of cli­ importance" of the Brazil event itself. matic, landscape, and ecological conditions and we are at all Heseltine lauded the instrumental efforts of former Brit­ levels of economic and social development. The Common­ ish Tory Prime Minister Margaret Thatcher, whom he char­ wealth can truly be described as a cross-section of the con­ acterized as a "scientist," in bringing about the "Montreal temporary world. Protocol" for phasing out chlorofluorocarbons (CFCs), and Democratic governments reflect the will of their people. for having sounded the alarm about the alleged dangers of In our system, the views of the individual can be translated "global warming." The British minister patronizingly de­ into governmentaction , so it is possible for everyone to make manded that the nations of the South overcome their objec­ a contribution, however large or small, to ensure the future tions and show "firm commitments to action and bring a health and vitality of the natural world around us. Bringing disciplined approach to bear" in the pre-summit negotiations about the necessary changes will not be easy, particularly if and at the summit itself. Heseltine made an implicit threat it involves restraints and sacrifices. But it must be done, that some giant ecological disaster might have to be concoct­ and we can all help in one way or another, individually or ed to engineer support for the summit: "Does the world need collectively. to feel an increasing exposure to danger before it develops a The living world is a God-given heritage and we have to collective sense of purpose?" be more responsible in our stewardship of it. We all need air Heseltine praised "the brave decision of John Major, who to breathe, water to drink, and food to eat, but we must be was the firstworld leader to commit himself to attend the Rio careful-not selfish or greedy-about the way we exploit conference in person .. ..Our prime minister will attend the scarce natural resources and about the demands we make on conference in Rio." the natural environment. In mid-January, in an unusual signed commentary in the Gradually, we are waking up to the challenges, but we London Observer weekly, Major had reiterated his commit­ especially need the rising generations to help us take the right ment to attend the Rio summit. The irony is, by the time decisions and actions now. I ask the young people of the June rolls around, it is more than likely that neither he nor Commonwealth to make themselves aware of the critical Heseltine will still be in power, following Britain's elections problems and issues. There is no time to spare. It is your on April 9. future that is at stake.

50 International EIR March 20, 1992 keeping an eye all the way. If things go wrong [the peace Indonesia boat] could become the operation" (emphasis added).

Indonesia takes firm approach The Indonesian governmentmade it clear from the outset 'LusitaniaExpr esso' that it would not yield to the provocation. A release from the Department of Foreign Affairs in J akatta dated Feb. 25 stated "that the objective of this group in undertaking such a voyage provocation defused is provocative in nature; that it is not all humanitarian but politically motivated and designed to instigate confrontation, by Lydia Cherry aggravate tension, induce divisiveness, and incite distur­ bances in East Timor. . . . The Indo�esian government de­ A provocation of potentially grave danger was defused, at clares the territorial waters of Indonesia closed to the vessel least for the moment, on March 11 when a dozen Indonesian Lusitania Expresso . . . and, in accordance with its sovereign warships turnedback the Lusitania Expresso, a Portuguese­ rights and for the sake of public order, will enforce the appli­ chartered "peace boat," as it came within sight of the East cable national and international laws if the group persists in Timor coast. Students from around the world along with this voyage. " several dozen dignitaries, including the former president of Nevertheless, Portuguese President Mario Soares contin­ Portugal, had intended to use the laying of a wreath on the ued to inflame the situation until the eleventhhour with state­ grave where protesters were killed on Nov. 12, 1991 for ments like, "You must always fear dictatorships, which are maximum political effect in a campaign to split East Timor governments that are apparently strong but really very weak; from Indonesia. the weak are aggressive." The promoters of the voyage, who in advertising for the "crew" had promised to pay all expenses, had envisioned the Who is footing the bill? endeavor as a means of "creating an event of great media It was an international student grouping, the Peace in impact." The mission was to include journalists from every Timor Commission, that advertised fqr the ship's crew, mak­ type of media, but mainly from television networks. British, ing clear in a call that traveled on computer-nets: "All expens­ Portuguese, and Australian press outlets were indeed doing es, including trip from country of origin, lodging, feeding, their part in creating this event of "great media impact." In and return trip, will be supported by the organization." At the face of the hefty Indonesian fleet, however, the event least $1 million is estimated to have gone into the media fizzled. show. There has been no discussion of who was footing the What was feared by some Australians in particular, was bill. The Portuguese government claims it had nothing to that the power play could be turned into a military clash do with the organization of the mission but "appreciated its between AustralianJU . S. and Indonesian forces. The voyage generosity and its moral importance.:' Portuguese President was scheduled to place the protesters in the same area at the Soares and Prime Minister Anibal Cavaco Silva met with the same time as the biggest U.S.-Australian war-game exercise student organizers of the voyage just before they leftfor Port in Australian history. "Kangaroo '92," now in process and Darwin, where the crew gathered before departing to East reportedly two years in the planning, involves 12,000Austra­ Timor. lian combat personnel and 880 Americans drawn from the The following personalities were part of the confirmed U.S. Pacific command. list of dignataries scheduled to saiL From Portugal, Gen. Relations between Australia and Indonesia have never Antonio Famalho Eanes, former President of Portugal; Rui been particularly warm, and the largest group of dignitaries Oliveira Costa, leader of the Portuguese trade union, the onboard the Lusitania Expresso were Australians. Further­ UGT; and A. Barbedo de Magalhaes, a professor at Oporto more , statements made by Australian Prime Minister Paul University. From the United States, among other Americans, Keating calling for caution and recommending that the voy­ was a Brown University Dean, David Targan, reported to be age be called off, as one Australian source noted, were "ex­ a good friend of Sen. Claiborne Pell (D-R.I.). From Austra­ tremely limp-wristed." lia, Jean McLean, a left Labour Party Member of Parliament Australian anxiety about the matter increased with the from Victoria, was onboard, as was Shirley Shackleton, wid­ March 9 publication by the Melbourne daily Herald-Sun of ow of an Australian journalistkilled in East Timor during the an interview with an Australian Defense Department spokes­ civil war situation in the province in \he mid- 1970s, prior to man. The spokesman said the military exercise will not stand its annexation to Indonesia. Some of the other Australian idly by if Indonesia attacks the boat. The spokesman contin­ dignitaries were Paul Matters, secretary of the South Coast ued that the commanders of the allied ships "are very well Traders and Labor Council, and Bernard Collaery, former aware of the [Lusitania Expresso] operation. They will be Australian Capital Territory attorney general.

EIR March 20, 1992 International 51 Chinese develop strategy for 'new world disorder' by MaryMcCourt Burdman

China's Communist Party is once again plunged into a big of the former U.S.S.R., and attempt to use these ties to faction fight; this time not only about who in the party is influence the republics bordering China; and 3) take advan­ going to rule China, but also how the party itself is going to tage of the conflicts between the U.S. and Europe, and be­ stay in power. To that end, the factional brawl is being played tween the U.S. and Japan, to further divide them and prevent out both internallyand on the internationalstage . The reemer­ a united front against China. gence of 87-year-old Deng Xiaoping, China's senior leader, The document notes the development of economic blocs from two years of retirement, preaching "reform" and at­ in North America and Europe, and the calls for various eco­ tacking "leftism," shows that the fight is serious. But there nomic plans in Asia, but China's best interests, it says, would is no question that all warring factions within the party are be based on an economic "greater China" of Taiwan, Hong determined to hold on to power by any means available. They Kong, and Singapore , centered around the People's Republic only disagree on the means for doing so. of China (P.R.C.). This "greater China" would be built with The clearest picture yet to emerge of Chinese policy was the capital and technology of the three small countries and published in France's Le Figaro March 10. A document the mainland's industrial network, scientists, technicians, being circulated among China's hierarchy to explain the mis­ and cheap labor. With the Japanese and U.S. markets "prob­ sion of Foreign Minister Qian Qichen in Europe March 8- lematic," China must create a market in Asian countries 14, states that China must seek its way in the "new world "deeply influencedby Chinese culture," the document states. dis-order." The purpose of Qian's visit to Britain, Germany, In addition, the South China Sea region is the only undevel­ and the European Commission headquarters in Brussels, is oped source of resources that will be left when those of the to attempt to influence the new world situation. "One cold Xinjiang region in Chinese Central Asia are gone. war has been finished; two cold wars are beginning"-be­ With the world entering a "multipolar warring states peri­ tween the U.S. and Europe, and within Europe-the docu­ od," the document claims that Asia will be the only region ment states. It is necessary to returnto a "multipolar world," to enjoy "relative stability," which China must exploit until instead of a world dominated "by the United States, as a sole the international order changes to China's advantage. superpower .. ..It is necessary to exploit the contradictions, especially those which exist among the western nations, in Making deals order to reinforce China." In this context, Beijing has recently made a series of China must act "calmly and intelligently to maintain its deals with the West, including recognizing Israel. Especially position, to conceal our capacities, to win time, and to avoid interesting have been its deals with Britain. It was on his visit conflicts," the document states. Europe is a place for activity, to London on March 10 that Qian Qichen finally handed the because it is "in competition with the United States to become articles of China's accession to the Nuclear Non-Proliferation the dominant power in the world." Each country is "strug­ Treaty to Prime Minister John Major. China is the last of the gling with the United States to establish spheres of influence "Permanent Five" U.N. Security Council powers to sign the in the former communist nations. " Qian is going to Germany, treaty. Qian called the move a "major step," and Major called because, like Japan, it "defies American supremacy," and, it "an immensely important step." at the same time, "Germany's ambitions are causing disquiet During his visit, Qian also addressed the Royal Institute in Europe." of International Affairs, where he made the "concession" on At the turn of last year, the Chinese CP put out a docu­ human rights that the issue could be discussed internationally ment calling for a "pragmatic foreign policy" centered on an as long as consultations were held on "an equal footing." economic "greater China," Hong Kong's The Tide monthly When a Chinese from Taiwan asked Qian, after sounding so reported. This policy has three main elements, the document moderate, what he would do if the Kuomintang wanted to states: 1) establish a cultural and economic "greater China," come to China to organize, Qian responded that the KMT focused on the overseas Chinese community in Southeast would now be welcome on the mainland. EIR has also learned Asia; 2) expand trade and economic ties with the republics that China has privately given its assurances to the United

52 International EIR March 20, 1992 States and Britain that it would back a new military strike policymakers are considering the possibility of nuclear war­ against Iraq . fare between China and India. They consider this the ultimate On the same day in Beijing, the P.R.C. invested its cho­ malthusian "solution" to what they consider the great prob­ sen 40-member "transition team" of Hong Kong citizens for lem of the 2 billion people inhabiting these two countries. an advisory panel for 1997, when the colony is to be returned to China. The list includes prominent members of the Chi­ Knives are out nese-British "Dope, Inc." connection, including Li Ka­ This is the background of the Chinese internal power shing, Henry Fok Ying-tung, Sir Run Run Shaw, and Sir fight. China's CP is the world' s bigg�st mafia secret society, Y.K. Pao's son-in-law Peter Woo. and "ideology is nothing but a cover for the struggle for But the Chinese relationship with Britain is two-edged. power," France's Liberation quoted a Chinese journalist At the same time that deals are being made in Hong Kong March 7. The power struggle, the "biggest since 1989," is and London, century-old British-Chinese tensions are heat­ being fought "with drawn knives." The CP will hold its 14th ing up. Beijing is extremely nervous about the situation in Party Congress in the autumn, and this will be the "last time Central Asia, especially in the "autonomous regions" of Tibet for the old guard to impose its successors. The Congress will and Xinjiang, which it considers vital to Chinese military decide the succession to Deng." and economic security. It is here, where Britain played the Deng emerged from two years of retirement to visit five "Great Game" for the control of the Eurasian landmass Chinese provinces between December and January, and at against the Russian Empire in the last century, that Anglo­ the end of January he appeared on a public visit to the special American-controlled assets are again being played, especial­ economic zones of Shenzhen and Zhuhai on China's south­ ly in Kashmir and Turkey. east coast near Hong Kong. Deng 'also visited Shanghai, China moved rapidly to establish relations with the newly China's biggest industrial city and the financial hub of Asia independent Central Asian republics of the former U . S.S . R. , before World War II, and several militaryunits . motivated particularly by the close ethnic and linguistic ties The visit and Deng's calls for speeding up free market between the Uighur populations of Xinjiang and Kazakhstan, reform in China were first heralded in the pro-Beijing Hong Kyrgyzstan, Tadjikistan, and Uzbekistan. One Muslim revolt Kong press. His speeches, calling for adopting "capitalist in Xinjiang was bloodily crushed in April 1990, and Beijing methods," have since gotten more aQd more coverage inside fears more unrest. On Feb. 5, bombings in the capital city of China. On Feb. 15, the People's Daily gave front-page cov­ Urumqi killed 6 people and wounded 26. On March 2, Uighur erage to a speech by Chinese President and military strong­ nationalists based in Alma Ata, the capital of the republic of man Yang Shangkun, 85, in Shanghai, endorsing Deng's Kazakhstan, vowed to start a guerrilla war to force the Chinese reform call. Yang also said that there was a need for China out of Xinjiang. A spokesman for the Front for Liberation to adopt capitalist methods, according to the official Xinhua of Uighurstan from Alma Ata denied responsibility for the news agency release. Over Feb. 22-23, the People's Daily bombs, calling them a "Chinese provocation." The Chinese published a front-page editorial and commentary calling re­ CP head in Xinjiang, Tumol, on March 8 accused "hostile form China's "only choice." Until this point, the media had forces at home and abroad" of trying to separate the oil-rich been the bastion of Deng's opponents. Deng is now at­ Xinjiang region from China, and said that "the police, Army, tempting to force the resignations of a newly designated and militia" were all mobilized to deal with the situation. Tu­ "Gang of Four," including acting Minister of Culture He mol also said that the "changeable internationalsituation" had Jingzhi, who was appointed after the June 4, 1989 Tianan­ affected and was still affecting Xinjiang's stability. men Square massacre. An even more dangerous "poker game" is going on be­ A speech by Deng is being circ\llated in the party, por­ tween China and Britain on the population issue. China will tions of which were published in Hong Kong's Ming Pao use any and all capabilities to survive, including Beijing's newspaper. Deng reportedly assuredthe hardline faction that unique "ultimate weapon": deploying its 1.2 billion people he would not hesitate to crush any new political dissent, as a strategic threat against the other nations of Asia. Deng but that the continued support from the West depended on Xiaoping once again threatened to use this weapon, Hong continued "reform," i.e., offering up the desperate Chinese Kong's Wen Wei Bao reported Feb. 22. "If China falls into peasantry as cheap labor for labor-intensive investments in chaos, if the Chinese people do not have enough to eat ... the free trade zones. Said Deng: "It was only because we they might flee all over the world. Should 200,000 people had reform and the open-door policy that we were able to flee to Hong Kong, the territory will not be able to stand it. withstand June 4." Should 1 million flee there, Hong Kong will be crushed," Acknowledging the resistance from the more industrial­ Deng said. ized North of China, which is sufferingfrom the nearly total Britain has its own answer to this Chinese threat. There emphasis on the free trade zones in the South, Deng also is lots of discussion of China's billion-plus people as the said: "I had to go south to speak, because in the North many "ultimate marketplace," but the fact is that senior British people won't listen to me."

EIR March 20, 1992 International 53 Andean Report by Carlos Mendez

Peru's terrorists invade Mexico The letter insists that the bookstand at Shining Path, proclaiming itself "spearhead of the international issue was selling every sort of Shining Path publication and videotape, such revolution, " sets up shop in Mexico City. that "if it wasn't Shining Path at the fair, it was a twin brother." Garavito Amezaga also pointed out that, in his reply, Witman never mentioned "the links between his dis­ How extensive is the network of the "represent the spearhead of the inter­ tribution network and the (Maoist) Shining Path terrorists inside Mexico? national revolution." Revolutionary Communist Party of Who aretheir accomplices, allies, and That is, writes Garavito, "for the the United States, which is part of the followers there? And why does the Shining Path, Peru is but 'a base for so-called Internationalist Revolution­ Mexican government of President the world revolution.'... Therefore , ary Movement (MRI) created at the Carlos Salinas de Gortari tolerate their the Mexican-based Support Commit­ second conference of the (Maoist) presence? tee for People's War in Peru is a Communist International Movement These questions appeared in a let­ beachhead inside the country for a fe­ in Paris in 1983. The mouthpiece of ter to the editor published in the March rocious project that seeks to incinerate this terrorist international is, in fact, 5 issue of the Mexican daily EINacio­ Latin America, and the world." the publication A World to Win." nal, denouncing the presence of Shin­ On March 6, El Nacional pub­ Garavito Amezaga warned that ing Path at the International Book lished a reply from Efrafn Badillo Jas­ from the standpoint of Shining Path, Fair, which is organized every year so, coordinator of the International "Mexico has a key role to play, along in Mexico City by the Autonomous Book Fair, who maintains that "there with other Shining Path international National University of Mexico was no bookstand of the Shining Path centers-France, Belgium, and Swe­ (UN AM) and the engineering faculty represented" at the fair. The same den-because of its influence in Latin of that university. newspaper published the reply of America and as a route to the United In his letter, Hugo Garavito Frank Witman, the representative at States." He concluded that the book Amezaga notes that the Shining Path the fair of Liberation Distribution, fair was but a glimpse of Shining book La Guerra Popular en el Peru. who denied that the fair ever gave Path's operations in Mexico, and that El Pensamiento Gonzalo (People's space to Shining Path , saying it was those operations are not a question of War in Peru. Gonzalo'sThought, sec­ rather given to his distributing compa­ freedom of expression, but of national ond edition, Mexico City, 1991), "to­ ny, which "sells the materials of the security. gether with abundant literature pro­ Communist Party of Peru (Shining In February, at the philosophy de­ moting death and genocide in Peru , Path) . " partment of the UNAM, a poster ap­ can be acquired at the K- 15 stand that According to Witman, his compa­ peared bearing the headline "The Peo­ the International Book Fair has pro­ ny sells "progressive, radical and, es­ ple's War Gets Ready to Take vided the Shining Path committee op­ pecially, revolutionary books. . .. Power," and announcing a Shining erating in Mexico. Its exact name is The nucleus of our activities is the dis­ Path forum to be held in the auditori­ Support Committee for People's War tribution of works of the Maoist inter­ um of Section 9 of the National Union in Peru, and it is presided over by one national tendency. " Regarding the of Education Workers , captured by Gabriela Salas ....Further, the fair Shining Path propaganda event, Wit­ leftists of the National Coordinator of announced a Shining Path propaganda man claimed that it was merely to Education Workers. event for March 8. . . [on the pretext] present the magazine Un Mundo que If one considers that Mexico has of presenting a pamphlet called 'Our Ganar (A World to Win), which is the just agreed to be the site for revived Red Flag Waves in Peru.' The pam­ organ of the Shining Path internation­ "peace talks" between the govern­ phlet is an apology for 'selective al movement. ment of Colombia and the FARC! annihilation.' " On March 7, EI Nacional pub­ ELN narco-terrorists in that country, Garavito writes that worst of all is lished a second letter by Garavito one must conclude that Shining Path's the fact that the ravings of Shining Amezaga, entitled "Shining Path in presence in Mexico is indeed a beach­ Path are not limited to Peru but, as Mexico: If It Walks Like a Duck and head, and a threat to security every­ Gabriela Salas says in the pamphlet, Has the Tail of a Duck, It's a Duck." where.

54 Intemational EIR March 20, 1992 Panama Report by CarlosWe sley

Noriega's revenge? by former DEA Administrator John C. Bush's reelection bid could be dealt a new blow, as witnesses Lawn as "a model for other countries throughout the Americas." admit Noriega's cooperation in anti-drug effort. But it was Panamanian legislator Balbina Herrera who showed how flim­ sy the government case was, during her testimony for the defense on March 3. As the federal drug trial in Miami policy action-Operation Just Prosecution witIfss Max Mermelstein against Gen. Manuel Noriega was Cause-would be open to question." had testified that in 1983 he had met in coming to a close, the head of the U. S. Noriega himself attacked the ad­ Panama with aq immigration official Drug Enforcement Administration ministration's effort to railroad him who, on behalf of Noriega, promised during the same period the prosecution with the connivance of Judge William him assistance with smuggling cocaine claims Noriega was collaborating with Hoeveler, who has prevented the de­ through Panama. Mermelstein said he the Medellin and Cali drug cartels, tes­ fense fromintroducing evidence of the did not leamHeITera 's name until 1988, tified that there was no evidence that administration's running drugs for when prosecutoI'$ showed him a video­ the Panamanian leader was ever in­ arms for the Nicaraguan Contras. In­ tape of a news broadcast. volved in drug trafficking. voking his rights as a prisoner of war But, as Herrera testified, she has The testimony by Francis Mullen, under the Geneva Convention, Norie­ never met MeIlhelstein, nor has she DEA administrator from 1981 to 1985, ga told the court on March 10 that he ever been an immigration official . In and by other active and former U.S. would not take the stand, because 1983, she was . bureaucrat in Pana­ law enforcement officialscalled by the Hoeveler had barred any mention of ma's Departmctnt of Human Re­ defense-most of them as hostile wit­ "political matters , issues of war, and sources, which administers student nesses-tore apart the government's the invasion." loans and scholarships. At the time, case against the Panamanian leader. If Earlier, Douglas Driver, a DEA she did not know Noriega, who was Noriega is not convicted, this could official in Panama, had admitted that not yet commanding the PDF. She hurt George Bush's reelection bid. under General Noriega, the Panamani­ does not spea� English, and Mer­ "During the time that you were in an Defense Forces (PDF) helped the melstein does not speak Spanish. charge of the DEA , fromJuly 1981 to United States to arrest Gerardo Cabal­ Defense attorney Rubino asked March 1985, did you ever receive any lero, the son-in-law of Bolivia's "King Herrera if she was offered immunity credible information that General No­ of Cocaine," Roberto Suarez, head of or aU. S. "greem card" for permanent riega was involved in drug traffick­ "one of the most important cocaine residence in ex¢hange for testifying. ing?" asked defense attorney Frank trafficking groups in the world," ac­ She replied "no," as the prosecution Rubino. cording to Driver, who testified on objected. "No," replied Mullen. March 9 as a hostile defense witness. Almost all the prosecution wit­ "Noriega's Star Rises" headlined "This case was one of the finestexam­ nesses-including drug lord Carlos the March 6 Financial Times of Lon­ ples of international cooperation that Lehder-received reduced sentences, don , adding that "speculation is grow­ can be found anywhere," stated Driver money, immunity, or green cards to ing that he might be acquitted on at in a July 21, 1986 letter to PDF Inspec­ testify against Noriega. Charges were least some of the main counts." Ac­ tor Luis A. Quiel. dropped againstMermelstein for three cording to the newspaper, "The possi­ Former Panama Supreme Court murders he admits to and two others he bility grows that the 1989 invasion of Justice Jerry Wilson told the jury on is suspected of, tor smuggling 56 tons Panama might become an issue in this March 9 that it was Noriega who had of cocaine and 21 tons of marijuana year's presidential campaign." Noting drafted and ensured passage in 1986 of into Florida, for smuggling guns, and that "President George Bush's Desert Law 23, which for the first timemade for cheating on: his taxes. Before he Storm victory last year no longer reso­ it a crime in Panama to launder drug was sprung from jail, the government nates with voters , " the Times conclud­ money. One of the first measures un­ gave him $900 to buy snacks from the ed: "A rejection by the jurors in the Mi­ dertaken by the puppet-government prison's commissary . Since then, ami trial of all or most of the charges installed by the United States after the Mermelstein has been on the govern­ against General Noriega would mean December 1989 invasion, was to abol­ ment payroll, making at least that the rationale of an earlier foreign ish Law 23. That law was described $250,000 a year.

EIR March 20, 1992 International 55 InternationalIntel ligence

medicine, armaments, and electronic fail to take a strong stance against the U.S. Haitian President goods. There is an unrestricted flow ofBur­ demands at the General Agreement on Tar­ slams OA S accord mese timber and gems being taken out by iffs and Thade (GATT)talks that Japan open the Chinese, and the Chinese find it very its nationalist rice market. Haitian provisional President Joseph Ne­ easy to obtain National Registration Cards, Koki Hagino, a coalition candidate sup­ rette urged the Parliament on March 6 to Swe said. ported by the Japan Thade UnionConfedera­ reject the Organization of American States' Thereis enormous pressure on the Asso­ tion, the Social Democratic Party, the Dem­ accord and hold out for a "definitive, consti­ ciation of Southeast Asian Nations ocratic Socialist Party, and others, won the tutional solution." He said the accords vio­ (ASEAN) countries to condemn Burma for seat. lated the Constitution, and the OAS would human rights violations, yet at the same time Miyazawa flew into Miyagi on election make "inacceptable inroads . . . into na­ these countries are being blamed, especially eve to stump for Onodera--despite pleas tional sovereignty." by environmentalists, for "looting" Burma's from his party's local campaign headquar­ He particularly opposed the provision to forests. No pressure is being put on Beijing. ters not to come. The media have been giv­ send a large team of civilian "observers" to ing Miyazawa such bad press lately that supposedly oversee and strengthen Haiti's some LDP elders thought he would be a democratic institutions until ousted Presi­ Zurich shuts do wn liability to the local candidates. Miyazawa, 72, a nationalist, is under dent Jean-Bertrand Aristide returned. "How drug 'fr ee zone' park can we commit ourselves to accepting on attack from the Anglo-Americans for such the sacred soil of our ancestors this mission, things as Japan's nuclear program, which he The City of Zurich, Switzerland closed the helped create. But because he has refused to which has always intended to behave like an Platzspitz Park at the beginning of February, occupation?" he said. break with the Bush administration's broad­ the International Herald Tr ibune reported er geopolitical games, the Japanese people In response, OAS Secretary General on March 3, in an editorial which rejected Joao Baena Soares said he still expected the can easily be convinced that his program is the idea of legalizing drugs. The park had weak . Parliament to approve the accords, but as been a freezone for drug addicts since 1989, for military intervention, he confessed that and the number of drug users grew from a it would not work. "I don't think a military few hundred to tens of thousands. intervention in Haiti ...could solve the "In theory it was a thoughtful, well­ Colombian military curbs problem," he said. "It would not be just an meaning plan. In practice it was a disaster," intervention, it would be an occupation, and the paper editorialized. "One glimpse of the deals with terrorists that is in nobody's plans right now, and, I faces in the crowds at Platzspitz should con­ believe, will not be in the future ." vince even the most fervent reformer that The Colombian Communist Party daily Voz legalization is the wrong way to go." reported on March 4 that the country's The City of Bern also has announced Armed Forces areimposing strictures on the Chinese immigrants that it will close down Kocherpark, its free Gaviria government's pursuit of a negotiat­ zone for drugs, at the end of March. ed pact with the narco-terrorist FA RC, and sp read into Burma has been holding secret meetings on those negotiations, which had been due to resume Chinese settlers are systematically moving Japan's Miyazawa in Caracas, when the Ve nezuelan insurrec­ into and spreading throughout northeast tion intervened on Feb. 4. Burma (Myanmar), Dr. Tint Swe, an oppo­ suff ers election loss According to Vo z, the military has out­ sition member of Parliament who had to flee lined the conditions under which it will ac­ to India last year, told the Hindustan Times Japanese Prime Minister Kiichi Miyazawa's cept continued negotiations, including: I) recently. Liberal Democratic Party lost a critical seat the governmentmust not fear the alternative The Chinese immigrants are moving as on March 8, in a special election which is of war; 2) the government must put aside far south as the city of Mandalay. Their seen as a litmus test, four months before the its attitude of "peace at any price"; 3) the numbers have perceptibly increased since July national elections. The LDP's Nobuo governmentmust firstestabl ish the sincerity the Sept. 18, 1988 military coup, Swe said. Onodera, a member of Miyazawa's faction, of the guerrillas, based on a full understand­ Many are entrepreneurs, and are buying lost his contest for a seat in the Upper House ing of their capabilities and intentions; and land, whose price has gone up five times in of the Japanese Diet in Miyagi. 4) the government must not negotiate away the Mandalay region since 1988. The Bur­ Farmers in Miyagi, a key rice-growing anything which falls under the exclusive mese government, Swe reports , is showing region, were angry over the slowdown of mandate of the governmentor Congress. "unusual tolerance" of the immigrants, be­ the economy, and especially over leaks from Voz fears the possibility of President cause of Burma's dependence on China for Miyazawa's government that Japan might Cesar Gaviria's acquiescence to these mili-

56 International EIR March 20, 1992 • DENG XlAOPING is reported to have promised to take no reprisals on returning dissidents. Reuters on tary demands, noting that "on occasion, Age Yanomami Indians. "I am in favor ofthe March 6 quoted a source close to the there appear to exist two powers" in the Indians having a plot of land marked out for Communist p� saying that all Chi­ country. Late reports now confirm that the them. But I am against these huge tracts nese are welcome back "no matter site of the negotiations, when and if they which they have not even asked for." He con­ what their political views and what resume, has been moved from Venezuela to tinued: "My grandmother was an Indian, and views they hllve expressed in the Mexico. if policies of this kind existed in those days, past. " The sOUfce claims to have read her grandson would never have been elected a speech to thi6 effect by Deng, now governor. . . . The world has fought a long circulating among top layers of the battle to put an end to apartheid, and now Imprisoned Chinese party . they want to start a new apartheid over here ." leader is 'optimistic' • AN ALGFlRIAN panel of judges We i Jingsheng, leader of China's "Beijing has ordered thj;: dissolution of the Is­ Spring" in the 1970s, is said by his family Ortega campaigns fo r lamic Salvatiop Front (FIS). The par­ to be "very optimistic. . ..He is in very ty won first-round elections in De­ good spirits and is even quite confident Bush in Ibero-America cember, but a tunoff vote, which was about the future ." Reuters reported on expected to yield them a legislative March that9 sources say he is now allowed During a trip to Peru, Nicaraguan Sandinista majority, was iblocked by the Army . toread books . chieftain Daniel Ortega came out swinging It is feared that the decision will drive We i has been in solitary confinement for for George Bush as a President with whom more extreme elements in FIS to take 13 years , torturedphysically and psycholog­ the !bero-American leftcan deal. violent action: La Republica ically. The report says he has lost his teeth In an interviewwith Peru's MEXICOrS from hunger strikes against the earlier mis­ on March 2, Ortega said of Bush: "I spoke • "Beo" TV network, treatment. Despite reports that he had been with him several times when he was vice in a report on tJte presidential primary drjven to mental problems, the source told president, and he had to defend [U.S.] posi­ elections in Uie United States, said Reuters that "he is very well-informed now tions, but when he was President, we met in that Lyndon LaRouche is a factor to about what is going on in the outside world." Costa Rica in October 1989 and we had a be reckoned with in the elections. He is due for release in March 1994. very interesting exchange, on friendly George Bush and Bill Clinton are the EIR's feature story on Feb. 14 reported terms, although we ended up fighting in current front-tunners, the broadcast on the writings and life of this extraordinary frontof the press over a matter of the Con­ said, but the� are other candidates, leader. tras. You could talk to him." such as Lyndqn LaRouche, the dem­ Ortega was visiting Lima to speak at a ocratic candidate imprisoned on conference organized by the Sao Paulo Fo­ fraudcharge s, who could surprise ev- ! Amazon governor rum, a network of leftistand terrorist groups eryone. set up by the Cuban Communist Party (see denounces the greenies EIR , March 6, 1992, page 34) . Ortega made • EXILED ; TIBET AN leaders clear that the fall of communism in Eurasia blame the United States for the The outspoken governor of the Brazilian has not turnedIbero-American leftists away U.N.'s failure to censure China on state of Amazonia, GilbertoMestrinho , says from seeking power. The Brazilian Workers human rights.l Lodi Gyari, the Dalai that he would "open up the Amazon to ambi­ Party and Broad Front of Uruguay are "be­ Lama's speciliIenvoy for United Na­ tious new mining projects and legalize hunt­ coming an alternativegovernment," he said, tions affairs , Called the U.S. govern­ ing," according to a profile issued by Reu­ while EI Salvador's Farabundo Marti Na­ ment's oppos,ion to the passage of a ters on March 6. Says Mestrinho: tional Liberation Front "fought a war to cre­ resolution on tibet "diappointing." : "Environmentalists like to talk about plants ate a larger political space ." and animals but forget about man. Man is Ortega was busy selling "democratic so­ • INDIA will urge the United the beginning and end of everything . The cialism" as the model to achieve power. States to incorporate Israel , Iraq, and Earth loses all meaning without men .... That does notmean breaking with the Inter­ former Sovie. Central Asian repub­ They want the forests to remain untouched, national Monetary Fund system, Ortega lics into a regipnal plan against nucle­ that not a single tree or animal should be said. The IMF is "the only solution" for the ar proliferati�, Reuters reports. In­ removed. They believe everything should economic crisis, he told La RepUblica, dian Presid�nt Rao reportedly remain exactly as it is. They'd love to pull while specifying in a radio interview that broached the issue of Israel's inclu­ a condom over us." what the left offers , is the ability to lessen sion in the pI$! when he met Bush in Mestrinho objects to the government's the social explosions provoked by the "inev­ New York in January. granting of vast tracts of land to the Stone itable" IMF adjustment programs.

EIR March 20, 1992 International 57 �ITillNational

Pentagonleaks plan fo r for U. S. world dictatorship by Leo F. Scanlon

A classified Pentagonplanning document calling for a U.S. extends not only to alleged violations of U. S. criminal law , strategy based upon the United States asserting itself as the but to matters of commercial law as well. These doctrinesare dominant world power has been leaked to the press, provid­ complemented by the assertions of former CIA head William ing new evidence of the imminent danger in which George Webster, made during congressional testimony, that the CIA Bush's "new world order," his pax universalis, has placed should henceforth direct its effortsagainst the chief economic the world. The document is the main component of the bi­ adversaries of the United States, such as Germany and Japan. annual Defense Planning Guidance, and represents the offi­ Disturbing evidence that these erosive and unconstitu­ cial Pentagon interpretation of the Bush administration's na­ tional notions are being fully assimilated by the military, tional strategy. turnedup in the recent congressional testimony of U . S. Army The war planning document illuminates the British geo­ Chief of Staff Gen. Gordon Sullivan . He reported that his political strategy lurking behind George Bush's talk of a reorganization of the Army "supports the role of the United universal peace: The administration is pursuing policies States as the preeminent power of our age." He reiterated a which will foment instability, while proposing to achieve point he previously made in a Washington Post commentary, "control" through measured military intervention. The ad­ that the United States considers economic threats and "unfair ministration has repeatedly made clear that the target of this trade practices" as potential causes for military action, and strategy is central Europe, with the goal of preventing the that his command is prepared for that eventuality . emergence of an independent concert of nations intent on economic development outside the constraints of the Interna­ The politics of arrogance tional Monetary Fund system. In the language of the Penta­ The excerpted versions of the Pentagon report support gon planners, the United States must pursue strategies which Gen. Sullivan's outlook. The reportwas prepared by Defense will convince "potential competitors that they need not aspire Undersecretary for Policy Paul Wolfowitz, and was circu­ to a greater role" in the defense of their legitimate interests, lated on Feb. 18 to top defense officials, with a cover letter and which will "discourage them from challenging our lead­ signed by Wolfowitz's deputy, Dale A. Vesser. A copy of ership or seeking to overturn the established political and the cover memo and the accompanying 46-page document economic order." was leaked to New York Times reporter Patrick E. Tyler by The Pentagon planning document represents the military an adm!nistration officialwho wanted to force a public debate component of a series of Bush policy revelations which began over the assumptions underlying the strategy. with the "Thornburgh Doctrine" promulgated to legitimize The release of the document has provoked a domestic the invasion of Panama through asserting a U.S. right to and international uproar, especially among erstwhile allies violate the national sovereignty of other nations. The archi­ of the United States, who have characterized the proposal teet of that doctrine, Attorney General William Barr, has that the U.S. should, in effect, become the policeman of the recently added the corollary, that U.S. super-sovereignty world, as "shocking" and not "oriented to reality." Many

58 National EIR March 20, 1992 American military officershave expresseed scornat the arro­ tIe international relations. Various types of U.S. interests gant assertions of the planning guidance as well. may be involved in such instances: access to vital raw materi­ But the harshest response has come from the Russian als, primarily Persian Gulf oil." press, civilian and military, which has condemned the docu­ The scenario blythely assumes �at no matter what type ment as an insult and a warning to "Russia and to the other of government evolves in Russia, even a resurgent imperial CIS [Community of Independent States] nuclear weapons­ faction could not pose an immediate threat to Europe without carryingstat es," in the words of Radio Moscow commentator the Warsaw Pact. The threat to the Bush administration is Viktor Innikeyev. Innikeyev concluded that the report should perceived as coming from other quarters: "There are other help leading people in Russia to "part with their illusions that potential nations or coalitions that could, in the further future, the good old Americans will raise our living standards and develop strategic aims and defense :posture of region-wide take care of our interests." or global domination. Our strategy must now refocus on The particular section of the document which has pro­ precluding the emergence of any potential future global com­ voked the most reaction, contains the following paragraphs: petitor." "This Defense Planning guidance addresses the funda­ Pentagon spokesman Pete Williams insisted to reporters mentally new situation which has been created by the col­ that this refers only to a "hostile power," an assertion which lapse of the Soviet Union, the disintegration of the internal may provide small comfort to allies who are wondering ex­ as well as the externalempire, and the discrediting of commu­ actly what that means. The Pentagon insists, for example, nism as an ideology with global pretensions and influence. that the United States "must seek to prevent the emergence The new international environment has also been shaped by of European-only security arrangements which would under­ the victory of the United States and its coalition allies over mine NATO." This posture produced a direct clash between Iraqi aggression-the first post-Cold War conflict and a de­ Secretary of State James Baker and French officials at the fining event in U.S. global leadership. In addition to these Brussels meeting of the North Atlanuc Cooperation Council, two victories, there has been aless visible one, the integration who reject the. Bush administration, plan to U&e NATO as the of Germany and Japan into a U.S.-led system of collective mechanism to preserve the .European borders, drawn up at security and the creation of a democratic 'zone of peace.' Versailles and Yalta, even when that policy produces wars "Our first objective is to prevent the re-emergence of a and chaos which threaten the stability of Europe. new rival, either on the territory of the former Soviet Union The Italian newspaper Corriere Della Sera editorialized or elsewhere, that poses a threat on the order of that posed on its frontpage that the Pentagon document "is shocking in formerly by the Soviet Union. This is a dominant consider­ many respects, starting from the frankness, to the brutality ation underlying the new regional defense strategy and re­ with which it theorizes the permanent subordination of allies­ quires that we endeavor to prevent any hostile power from competitors and explains how to use military power and nu­ dominating a region whose resources WOUld, under consoli­ clear force to reiterate this subordinlltion." U.S. correspon­ dated control, be sufficient to generate global power. These dent Rudolfo Brancoli goes on to call it a "foolish ambition" regions include Western Europe, East Asia, the territory of that pushes somebody "to design such ambitious plans while the former Soviet Union, and Southwest Asia. belonging to an administration which is every day forced to realize that it has no money to help !the new democracies in Clinging to the 'established order' the East, no means to help paying the costs of the U.N. ''There are threeadditional aspects to this objective: First, peacekeeping missions, and is not even able to pay its own the U. S. must show the leadership necessary to establish and quota to the international financialorganizati ons." protect a new order that holds the promise of convincing Lyndon LaRouche was the first statesman to predict that potential competitors that they need not aspire to a greater on the basis of administration performance and stated goals, role or pursue a more aggressive posture to protect their George Bush will be vilified in history as the man who lost legitimate interests. Second, in the non-defense areas, we the peace in Europe. But now Bush's refusal to respond to must account sufficiently for the interests of the advanced reality has even drawn firefrom former President Nixon (see industrial nations to discourage them from challenging our page 4) . leadership or seeking to overturnthe established political and Indeed, one Army strategist pointed out that the only economic order. Finally, we must maintain the mechanisms parallel to the insanity which is being expressed by these for deterring potential competitors from even aspiring to a Pentagon documents, is the effort by U.S. military officials larger regional or global role. . . . to become a major instrument of the Versailles Treaty in the "While the U.S. cannot become the world's 'policeman,' 1920s. The officer observed that at that time, only sheer by assuming responsibility for righting every wrong, we will intransigence on the part of the Congress saved the military retain the pre-eminent responsibility for addressing selective­ from that fate; but he added that if there is no similar opposi­ ly those wrongs which threaten not only our interests, but tion today , he would be "pulling the hair out of my head in those of our allies or friends, or which could seriously unset- frustration. "

ElK March 20, 1992 National 59 system capable of ensuring a sufficient supply of fresh water into the 21st century." LaRouche committed himself to the North American Water and Power Alliance proposal to bring LaRouchemaps out fresh water south fromAlaska and Canada. "This NAW APA project would admittedlycost hundreds of billions of dollars over the 10 to 20 years requiredto complete the construction. industrialreco very But, it will provide an additional 135 billion gallons of water per day for the United States. That is enough water to satisfy Democratic presidential candidate Lyndon LaRouche ad­ the thirst of the biggest industrial recovery in the history of dressed the nation in a half-hour nationwide political broad­ America, and to ensuremore than enough supplies of clean cast entitled "The Industrial Recovery of the United States" water for our grandchildren." on March 8 on the NBC television network. The program, The second infrastructure program, LaRouche said, is the second nationwide broadcast by LaRouche's campaign "the rebuildingof our transportation grid, especially our rail committee, "Democrats for Economic Recovery, LaRouche system, and development of roads and ports." LaRouche in '92," outlined a six-pronged program for an economic and stressed the importance of investing in "trains without industrial revival of the U.S. economy. wheels, magnetically levitated above their tracks, traveling The program began by outlining that the government has at speeds of up to 300 miles per hour." Such trains already thousands of pages of documents which could prove that exist in Germany, he pointed out, and committed himself, if LaRouche's sentence and incarceration are the result of un­ elected President, to constructing maglev corridors along the lawful governmentactivity . George Bush was shown being easternseaboard, and two fromChicago to New York City­ questioned during a campaign appearance in New Hampshire one through Buffalo, New York and another through Pitts­ on his refusal to release the files, and the White House attempt burgh, Pennsylvania. to hide the fact that the files exist. LaRouche has stressed "These maglev systems will pay for themselves, even that without his personal, hands-on involvement, there is just in terms of wasted passenger-hours saved. An estimated no one capable of ensuring successful implementation of a $40 billion of value is lost as a result of traffic delays each recovery program. year in the nation's eight most congested urban centers," The broadcast highlighted the fact that LaRouche is the LaRouche noted. only candidate running in either party who has offered a pro­ The third area, LaRouche said, is "the construction of the gram to getthe United States out of Bush 's new "Herbert Hoo­ energy grid needed to power an industrialrecovery . " Moving ver" depression. LaRouche has repeatedly presented these towarda fully nuclear-basedeconomy and making the United programs to the American public and policymakers since the States again "the principal exporter of nuclear plants and 1970s, when the opening phase of the collapse of America's technology throughout the world," are necessary steps to­ physical economy became apparent. A LaRouche statement ward a fusion-based economy. from 1984 set the context for the recovery proposal: "This LaRouche said that he would also "develop two vital depression, like all moderndepr essions, is completely unnec­ areas of so-called softinfrastructure ," health careand educa­ essary. During the period 1939-43, President Franklin Roose­ tion. He outlined the creationof a new health care infrastruc­ velt proved that with the right measures the federal govern­ ture consistent with the requirements of the Hill-Burton Act ment can get us out of a depression any time it chooses; or can of 1946. "My campaign is not offering any new health insur­ stop a depression at any time our government has the sense ance plan as such; what we are doing is simply offering to and willpower to take the necessary measures." secure enough high-quality medical care, to ensure that the needs of all Americans are met. " Components of recovery program Fifth , LaRouche said, "we shall develop educational The economic recovery, LaRouche said in the broadcast, facilities suitable for the tasks of the rising productivity in must be "based upon a new industrial policy. " In taped voice the coming century." statements made from prison, LaRouche outlined exactly "Federal investment in these five areas of infrastructure how the federal governmentcan get us out of the depression, will immediately halt the current depression collapse-as by issuing over $600 billion in low-cost credit to state and nothing less will do. But, on top of these measures, and in federal authorities for infrastructural public works projects. order to promote continued growth and increase in industrial LaRouche estimates that this would create 3 million jobs in productivity, we will need ...a science driver, some great the public sector, and would result in the creation of an national mission, like the Kennedy Apollo program, whose additional 3 million jobs in the private sector. goals will be the kind of scientific breakthroughswhich will LaRouche outlined the vital components of America's transform our productive, technological base." LaRouche industrial infrastructure that will be rebuilt under his presi­ said that the "available best such choice of program will be dency. First, he said, is "the creation of a water management a long-range buildup toward the colonization of Mars ."

60 National EIR March 20, 1992 LaRouche campaign reports intense voter response to TVaddr ess by PatriciaSalisbury

Officialsof the Democratic presidential campaign of Lyndon qualifiedto be President because of his record of projecting LaRouche say they are pleased with the high level of citizen and posing policy alternativesin each of the major cris.es the response to the firstin a series of half-hour campaign broad­ nation faces today. " casts aired in most of the country on Feb 1. The show was viewed by 1.9 million households, and in response the Dem­ 'Is it a crime to tell the truth?' ocrats for Economic Recovery, LaRouche in '92 campaign The campaign spokesman presented a selection of letters organization received over 1 ,200 cards and letters from all to back up her claim. One letter from LaRouche's home state over the country. Campaign officials say that they consider of Virginia wrote: "I watched the predictions made by Mr. such an outpouring as an indication of the depth of voter LaRouche during the Reagan and Bush administrations of dissatisfaction with the choices currently represented by .. the how the economy could stabilize by implementing his pro­ media-acknowledged candidates in both major parties. grams. This time, at least, the polls seem to reflectreality when "It is a shame that both administrations actually hid the they report that over 50% of all Americans rate President true facts from the American public by stating the situation Bush's performance as unsatisfactory, and that a large seg­ was either under control or the economy was slowly recov­ ment of Democrats consider none of the current front-runners ering. I believe that this tactic was u$ed by both administra­ adequate, and want others to enter the field. tions to keep the public from panickiq.g if the truth was really The LaRouche campaign reports mail coming in from all revealed to them about the economic. situation. parts of the country, with particularly heavy concentrations "I am truly amazed and highly ipterested in this person fromthe Northeast. Senders identifiedthemselves as Repub­ and his views politically and economically. It is also shock­ licans, Democrats, Independents, or as first-time voters, and ing to think that a person like this who would make these virtually every letter requested detailed information on the predictions and they would actually come true. The fall of strategic perspective and policy proposals which LaRouche the Berlin Wall and the reunificationof Germany, the chaos had outlined on the broadcast. Many also reportedly con­ in Yugoslavia, the fall of socialism in the Soviet Union and tained at least short comments or questions addressed to the the economic crisis in the same area, And to also think that campaign, while a significant number of the letters were of the President of the United States would lock this man down substantial length, commenting in detail on the substance of in a federal penitentiary for telling the truth? Is it a crime to the arguments and policy presented in the broadcast. tell the truth? ..." One campaign official reported that many who wrote Another letter came from a college freshman in Ohio: at length expressed a profound appreciation of LaRouche's "This will be my first year voting and I wish to make a insistence on the depth of the depression crisis facing the difference in the lives of Americans;. I was truly moved by county, and contrasted this with the failings both of President your advertisement on the television; therefore, I now write Bush and of the other Democratic Party candidates besides you asking for more information. LaRouche. "We believe that the letters indicate the begin­ "I, too, agree that many Americans have been 'blinded' nings of a break in the population with the cheerleading by Bush's soft wordings, and that we are in an economic approach to presidential politics," she said, "and a willing­ depression-as well as a depression of morals. . . . ness to face LaRouche's challenge to the individual citizen "After I look furtherinto what Mr. LaRouche plans to do to acknowledge his or her responsibility for the misguided for our bereaved country, I may wish to write you once more policies of the last 25 years , and to use his campaign as a for information to pass out on my college campus. . . ." vehicle for a fundamental change in the nation. Rather than Other letters were bristling with questions the writers respond like spectators at a football game, the people who would like the candidate to answer., One from Connecticut who sent us letters appear to be seriously examining read in part: "I saw your televised message to the people of ' LaRouche's assertion in the broadcast that he is uniquely the United States on the ABC television network. Besides

EIR March 20, 1992 National 61 believing every bit of what was said, it also raised some "We cannot change the direction of this country unless questions in my mind. I am 27 years old, and really started we correct the mistakes that were made 10, and 25 yearsago . noticing something very drastically wrong with the political Our education system is a shambles, so is our heavy industry, makeup of this country. Before I get into that aspect, let me we are not producing educated skilled workers for our future. ask a few questions: 1) Why was your ' Address to the Nation' I truly hope the Japanese and Germans learnto love hamburg­ not previewed by ABC? 2) What do you feel the Reagan­ ers, because all of us will be flipping burgers for them in a Bush administration has to hide, or gain, by railroading you? national McDonald-Disneyland of the future." 3) What are the objective goals of the Reagan-Bush adminis­ But the issue raised most frequently in the letters was the tration? And what would they gain by running this country illegal jailing of LaRouche. Many asked at some point in into the ground? 4) Why was your 'Address to the Nation' their letters, "Why is Mr. LaRouche in jail?" or "I can't not praised nor scrutinized? 5) Do you plan to air your cam­ understand how this fineman can be in jail." In some of these paign or argue the seeming truthful credibility of your story letters , the writer supplied his or her own answer, as in the on the CNN news program Crossfire?6) If elected President, following: do you believe in the immediate protection of our economic "In this day and age we need all the help we can get. boundaries in proportion to the world? "One question we all would like to know is why Mr. "I could go on asking all kinds of questions, but I'd like LaRouche is in prison? to get back to our present political leadership. "Lyndon LaRouche seems like a brilliantman with a lot "The more I dissect George Bush, and his deviously de­ to offer the people of this world. It does not surprise us that ceptive track record, his campaign speeches become less and Bush, and those like him would do whatever they could to less credible with myself, and others I know .. .. break down such a strong opposition. "I could write a book on how I feel about things. Politi­ "We as concerned Americans would like your informa­ cians of the past have offered no promises in the year of tion on how we can tum this election around and give us a election. People have become apathetic toward our govern­ ray of hope in this otherwise dismal election." ment and its politicans. We need someone like you who will Another wrote: "We want all information that you can come through. We need you. I'd like to help if ! can. Please send us, on his views, on the rebuilding of this once great respond. I have more to say." country, and what we can do to free him and make him a powerful opposition for the Republican Party." 'Why are you in prison?' And a Maryland woman wrote: "I was spellbound by the A number of letters focused on LaRouche's economic program on Mr. LaRouche's beliefs and plans ....As I policy, but raised additional considerations, such as in this watched this I asked myself, 'Where have I been, if this type letter from a trade unionist: "After watching your program of thinking has been around?' on TV tonight I wonder why no one has paid any attention "It is easy to see why Mr. LaRouche is in prison. He to what you have to say. scares the 'good ole boys' who are and have been running "I am a union member and things have been going down­ the games in our government for all these years. They are hill for unions ever since Reagan was in office.. .. running scared, fearing that enough of us intelligent voters, "People can't live on the low wages that non-union com­ will wake up long enough to really examine the records. panies pay, also with no medical and retirement benefits. "If enough of us will wake up and examine what is obvi­ "If they keep lowering the working people's wages, then ously going on-under the table-we can get a real President who do they think is going to buy the junk that they import elected and, then, build a real governmentby the people and to sell?" for the people, not just for a few of those who are 'on the "Sir, there is no doubt that you or me would be a better inside' and who are financially raping the citizens of the President than what we have now-but-I don't think that U.S.A. who are doing all the 'gruntwor k.' ... you or I have a chance of becoming President because the "I want to read as much of his views and remedial plans American people are like cattle, they have to be led in a herd as I can get. I have a lot of catching up to do. And I want to to the waterhole .. .. understand the inner workings of his plans and proposals so "Why are you in prison?" I can come to an intelligent understanding of his logic. Another letter from a worker in Indiana read in part: "I "As I listened to and watched the TV program, I could . . . very much agree with your positions on the economy. see a glimmer of hope on the horizon. I wonder if we, the There is not a dime's worth of differencebetween the Demo­ common man, are just intellectually malnourished to the crats and the Republicans. I do not choose to be governedby point where we need to immerse our minds in Mr. a group of (congressmen) elitist bums who vote themselves LaRouche's teaching, then perhaps come to a point where huge pay raises while the rest of the working class must work we can see his visions. for lower and lower wages. In some cases I am forced to The letter concluded: "With hope-filled anticipation I work for fees I was used to getting 10 and 12 years ago .. await your reply."

62 National EIR March 20, 1992 ment on the merits of the LaRouche case-that is something for the OAS Comission on Human Rights to decide-but is just defending the need for all member countries to subscribe to the accords. He was very forceful about this," said one Ibero-Americansdecry congressman. The secretary general told the congtessmen that he would ask the OAS Human Rights Comission to reconsider the u. s. rights abuse LaRouche case, which it had previously refused to consider. Baena Soares offered his good offices, after Congressman Members of a delegation of congressmen from lbero­ Bockos of Peru's ruling Cambio 90 party , on behalf of the America that visited the United States at the end of February delegation of lawmakers, formally handed him a copy of the to investigate human rights violations against Democratic full complaint and supporting documentary evidence earlier presidential candidate and political prisoner Lyndon presented to the OAS by LaRouche and five associates. Ac­ LaRouche, are launching a number of initiatives to press for cording to the source, Baena Soares was moved to act, at his freedom. One of the lawmakers, Congo Miguel Bush least in part, because of the reciprocity issue. Rios, the ranking member of the Foreign Affairs Committee During their tour, the delegation met with LaRouche's of Panama's National Legislature, is preparing a report on the attorneysOdin Anderson and Ramsey Clark, the former U.S. LaRouche case, and will present a resolution for Panama's Attorney General. The congressional delegation traveled to legislature to cali on the U. S. governmentto free LaRouche, Chicago for a "Food for Peace" conference of the Schiller said a spokesman on March 5. Institute (founded by LaRouche's wife and collaborator, Hel­ Bush, of Panama's opposition PRD party , was one of the ga Zepp-LaRouche) on Feb. 22-23, andthence to New York seven members from three Ibero-American nations in the City, where they met with state and municipal leaders, and congressional delegation. Several are undertaking initiatives with Catholic Church officials. The office of United Nations similar to that of Congressman Bush. The others in the dele­ Secretary General Boutros Boutros Ghali also arranged for gation were: Congo Carlos Rivas Davila, Minister of Eco­ the lawmakers to meet with the ranking human rights official nomics of Peru during the APRA administration of President at the UN's New York headquarters. Alan Garcia; Congo Oswaldo Bockos, of the current Peruvian ruling party, Cambio 90; Congo Lino Cerna Manrique The State Department's heavy hand (APRA), Congo Francisco Palomino Garcia (APRA) and The congressional visit was just one of several recent Congo Eduardo Salhuana of the United Left party (IV), all actions by Ibero-American lawmakers on the LaRouche case. from Peru; and Congo Jorge Le6n Diaz (Independent) from On Feb. 12, the Congressional Committee on Human Rights Venezuela. of the Chamber of Deputies of the Congress of Mexico offi­ "It is not only in Latin America that human rights are cially adopted the case for study. Earlier, the Commission on violated. Surprisingly, even in the United States itself, hu­ Human Rights of the House of Representatives of Bolivia's man rights are being violated, specifically in the case of Congress called upon the OAS and theUnited Nations to Democratic presidential candidate Lyndon LaRouche," Con­ pursue an investigation. The persecution of LaRouche ap­ gressman Palomino said in a radio interview broadcast na­ pears to be "an irregular occurrence," stated Bolivian Congo tionwide by Radio Programas network on Feb. 28, as soon Gonzalo Ruiz Paz, chairman of the commission, "consisting as he returnedto Peru . Palomino added that the U.S. govern­ of depriving a political leader of his freedom, merely because ment has tens of thousands of documents that prove the inno­ of the fact that he was a political enemy of the Bush adminis­ cence of LaRouche, "who because of his ideas has been kept tration" and because of his "harsh criticismof [Henry] Kis­ in prison, on the pretext of tax fraud, for the past three years singer. " in the Minnesota jail. " But, showing its continued blatant disregard for human Palomino informed a reporter thathe told aU. S. congres­ rights, the Bush administration has used every dirty trick sional aide: "I will do everything in my power to prevent the at its disposal to stop these embarrassing challenges. For U.S. from investigating human rights violations in Peru, example, the Speaker of Panama's Legislature, who is unless an investigation of the charges of human rights viola­ known to be very close to the U. S. embassy, attempted to tions against LaRouche by the U.S. is undertaken. All we dissuade Congressman Bush from joining the delegation, are asking for is reciprocity," said the Peruvian lawmaker. telling him that he had learned that LaRouche was a "child According to the lawmakers, Organization of American molester." His pressure tactics backfired. States Secretary General Joao Baena Soares expressed simi­ The same cannot be said for U. S. congressmen, cowards lar sentiments when they raised the LaRouche case with him, who surrendered to the administration's blackmail: Not one during a meeting at OAS headquarters on Feb. 25. "The American congressman or senator had the courage to meet secretary repeatedly insisted that he was not passing judg- with their Ibero-American counterparts .

EIR March 20, 1992 National 63 made that clear enough when he said of the latest closings, "Innovative labor agreements and work arrangements are going to be part of our decision" on which plants remain open Auto layoffs create in the future . The UAW does not regard such measures as "innovative." hot politicalclimate At his Feb. 25 press conference, Yokich declared, "We formed our union over 50 years ago to put an end to precisely that kind of practice by the automakers, playing off workers by H. Graham Lowry against each other, and we will not allow a return to those frustrating and difficultda ys. . . . We know how to stop it. The United Auto Workers, bornin the labor struggles during We will do everything to enforce the contract, including a the Great Depression of the 1930s, is now under attack by strike. . . . We're not threatening a strike, but it's an option. " the same financiers who are driving the United States into an economic collapse of far greater magnitude. The recent wave A political tinderbox of automobile plant closings announced by General Motors The toll already inflicted on the auto industry by the has brought the union-busting desires of the moguls of corpo­ current depression has certainlynot leftthe UAW in a mood rate financeout into the open-and is fueling a new surge of for "politics as usual" in this crucialelection year. The future militancy within the United Auto Workers (UAW) itself. of the industry itself has become a highly politicized issue. The massive contraction in productive capacity currently Michigan's Republican Gov. John Engler further stoked the under way in the auto industry is not even good for General fires Feb. 27 by suggesting that auto workers offer more Motors , let alone the country. It also poses a major threat to contract concessions to "save jobs." Last fall, he threw the dwindling supply of skilled labor, the most precious of 83,000destitute persons off General Relief to "save money." all economic resources. GM announced Feb. 24 that it was The GM shutdowns hit Michigan harder than any other state, shutting down 14 plants employing 16,000 workers, as part with five plant closings and the loss of over 9,000 jobs. of a "cost-cutting" scheme to eliminate 74,000 jobs and 21 Previous auto layoffs helped push the state's official unem­ factories over the next four years. ployment rate back up to 9% in February, the highest among Beyond consigning such a major chunk of American in­ the nation's industrial states. dustry to the scrap heap, however, GM also made it clear Engler's move has added to most auto workers' rage that it no longer intended to maintain the living standards against President Bush, already under attack for his push for necessary to skilled labor, for the workers whose plants sur­ a North American Free Trade Agreement (NAFTA), which vived the shutdowns. GM chose to keep its Arlington, Texas, would herd workers into jobs at below-subsistence wages plant open-over Michigan's Willow Run Assembly at Ypsi­ along the Mexican border. On the Democratic side of the lanti, for example-because the workers agreed to allow a presidential race, self-proclaimed front-runner Bill Clinton three-shift schedule, to build cars around the clock without has aggressively endorsed NAFTA; and going into the March overtime pay. 17 Michigan primary, the UAW leadership was backing an uncommitted slate. Twelve years of Reagan-Bush economics Clinton, who is publicly opposed by the head of the AFL­ UAW leaders in Michigan have angrily denounced GM's CIO in his home state of Arkansas for his anti-union record, open intentions to violate the company-wide contract with may have shot himself through the head, as far as labor is the union. UAW Vice President Stephen Yokich, director of concerned, by embracing the Wall Street line on the auto the union's GM division, declared Feb. 25, "Plant-against­ industry. Appearing on national television March 8, Clinton plant competition would only lead to an ever downward spiral declared that "workers are going to have to change their of wages, benefits, and working conditions, which would attitude toward work, [and] be willing to change all the work be extremely harmful not only to UAW members , but to rules in order to be competitive." Clinton cited the conces­ countless other American workers for which our UAW -GM sions by workers at GM's Arlington plant as a model, "be­ contract has set an important standard." Condemning "12 cause the workers there took matters in their own hands, went years of Reagan-Bush economics," Yokich added, "Not a against the leadership of their own union, and agreed to single vehicle is produced on Wall Street." new, flexible work rules to be more productive in the global Wall Street itself is gloating over GM's new salvo against economy." organized labor. In a front-page feature March 6, the Wall Voters in Michigan got a chance March 15 to hear from Street Journal noted, "By selecting Arlington, GM strongly the only candidate with a positive solution to the current signaled that worker cooperation will determine which fac­ economic disaster. Democrat Lyndon LaRouche's proposals tories will-and which won't-survive the extensive down­ for creating 6 million productive new jobs were aired on a sizing the company plans." GM chairman Robert Stempel half-hour paid campaign broadcast (see article, page 60).

64 National EIR March 20, 1992 Oliver North's 'Confederates' still targeting Contra opponents by Jeffrey Steinberg

John Edward Hurley is, by his own description, "apolitical." tobacco and cotton lobbies centere� in the Carolinas. The The northern Virginia businessman, lay Catholic activist, Hurley affair underscores the continqing active involvement and self-styled historian of the South is not registered as a of the "secret parallel government" in the nation's political member of either major political party. He has never run affairs . for office. In matters political, it is fair to describe him as Recently, this same apparatus scored a big political coup "naive." by purging several longstanding sen�r staffers from the of­ Hurley has devoted most of his leisure time over the past fice of Sen. Jesse Helms (R-N . C. ). T�e staffers had reported­ decade to the restoration and maintenance of the Confederate ly been involved in an investigation of corrupt covert opera­ Memorial Hall, an old brownstone mansion located on a tree­ tions by the Bush administration in qentral Europe. Among lined street in northwest Washington that once served as a the targets of the probe was Agency (or InternationalDevel­ retirement home for Confederate war veterans. The last of opment (AID) chief Ronald Roskens,: a 33rd Degree Freema­ those veterans died years ago, and by 1980, the memorial son of the Southern Jurisdiction Scottish Rite. hall had fallen into disrepair and was near bankruptcy; at that point, Hurley stepped in to revive the facility as a library­ Ollie's fundraising , museum. Things began to tum from bad to worse for John Hurley That is where John Hurley's troubles began. Early this in early autumn 1986, when in his c.pacity as the chairman year, Federal District Court Judge Thomas PenfieldJackson , of the Confederate Memorial Association, he canceled a in a highly unusual ruling, ordered Hurley, his attorney, "Freedom Fighters' Night" at the hal� on the grounds that the and one other board member of the Confederate Memorial event was a political affair that violated the CMA's charter Association (CMA), which maintains the hall, to pay an as a charitable-educational group. Tl)e host of the affair was estimated $70,000 in legal fees to the Washington "white to be Navy Adm. James Carey. The guest of honor was to shoe" law firm of Steptoe and Johnson on the grounds that be Lt. Col. Oliver North. Hurley and friends had filed a frivolous lawsuit. Soon after the "Freedom Fightet1S" event was canceled, Hurley found himself the target of a �mear campaign and an A front for intelligence operations all-out assault to take over the CM,A. He was �ccused of The lawsuit in question was a civil Racketeering Influ­ financial mismanagement and of hatboring homosexuals at enced and Corrupt Organizations (RICO) action initiated sev­ the hall. When Hurley fought back against the slanders, he eral years ago after Hurley and several other CMA directors was dubbed a "LaRouchie," despite tllefact that he had never found themselves under political and legal assault from some been in contact with any representati� of Lyndon LaRouche. of their erstwhile Memorial Hall colleagues who had designs The "LaRouchie" allegation is revealing. In Spring 1986, to take over the facility and use it as a safehouse and money­ LaRouche was also a target of Olive!r North's covert opera­ laundering front for the Nicaraguan Contras and other tions because of his opposition to the Contra program, ac­ Reagan-era secret intelligence schemes. EIR's own investi­ cording to governmentdocumen ts. gation into the CMA affair has identifieda cast of characters A string of lawsuits was filed against Hurley and other who were also involved in a similar dirty scheme involving board members allied with him follolNing his cancellation of the collapse of the Omaha, Nebraska Franklin Credit Union the Contra support rally. He found :that some of the board of convicted swindler and accused pedophile LarryKing . members he had bounced from th� CMA after the North The ruling by Judge Jackson, a one-time attorneyfor the "Freedom Fighters" incident had been laundering funds of Watergate burglars, capped a back-and-forth legal battle that undisclosed origin through Confederate Memorial bank ac­ has been ongoing since 1988, which has pitted Hurley against counts. Those funds were later trace.d to the First American the combined political muscle of the Oliver North "secret Bank, an outfit covertly owned by the Bank of Credit and team" of Iran-Contra fame, leading elements of the Bush Commerce International, a haven for �ecret intelligence slush political apparatus, and a major component of the powerful funds and drug money.

EIR March 20, 1992 National 65 Ollie's cronies of the judges who will be reviewing his case is James Buck­ The single most active member of the cabal that moved ley, whose family is another patron of Richard Hines. While to take over the Confederate Hall on behalf of the Contra the Buckleys are generally associated with New York City­ "secret team" was Richard T. Hines, a former South Carolina William F. Buckley publishes National Review there and legislator who held a number of posts within the Reagan James Buckley served as its U.S. senator-the family has administration. Hines was a protege of Max Hugel, a long­ deep roots in the South as well. In 1988, South Carolina time business associate of CIA head William Casey and public television sponsored a string of presidential candidate briefly his chief of CIA covert operations; and of Gerald debates hosted by William F. Buckley and the current Bush Carmen. Hugel and Carmen, who today run a Washington, administration ambassador to Russia, Robert Strauss. Also, D.C.-based "consulting firm," also were key GOP sponsors Fergus Reid Buckley is a writer for Southern Partisan. of Franklin Credit Union crook Larry King. After serving as one of Carmen's chief deputies at the Entrenched in Washington General Services Administration during the Reagan adminis­ If Hurley's enemies are entrenched in the federal judicia­ tration, Hines, who according to an FBI official was impli­ ry, their strength inside the Bush administration is even cated in a bribery scheme in South Carolina involving a greater. convicted cocaine dealer, moved into the corporate world, Hines's wife, Patricia Mayes Hines, is the daughter of becoming a vice president of the defense firm EDS, a senior Jim Mayes, the largest cotton grower in South Carolina and vice president of Automated Sciences Group, and, most the driving force behind the National Cotton Council, and recently, a well-paid consultant to Philip Morris Tobacco has held a number of senior posts in both the Reagan and Co. Bush administrations, starting with a staff position at the In 1983, Hines approached Hurley and offered to help Reagan White House. During her Reagan White House days, in the restoration of the Confederate Hall. An editor of the Patricia Hines forged a close alliance with fellow staffers Buckley family-linked Southern Partisan magazine, Hines Gary Bauer and Deborah DeMoss. DeMoss is now a driving began funneling a small army of Southern conservative ac­ force on the staff of Senator Helms. tivists through the hall, including White House officialMor­ The DeMoss Foundation, based on the family's fortune, ton Blackwell and Department of Energy attorney Steven constitutes one of the largest sources of funds for Christian Page Smith. Hines also brought along a group of "volun­ evangelical activities in the United States, Mexico, and Cen­ teers" who were all former military pilots, who would put tral and South America. Mark DeMoss, Deborah's brother, in a few days of work painting and repairing the building, was chief of staff to JerryFalwell and the administrator of the only to disappear for weeks at a time. Christian Embassy in Jerusalem, according to Washington Hurley is now convinced that Hines was deployed by the sources. The embassy serves as a bridge between Christian North "secret team" to take over the CMA and tum the evangelicals and right-wing Israeli Zionists, and is an impor­ Memorial Hall into a front for the Contra program. The tant component of the Temple Mount plot to foment a reli­ hall was to be used as a Washington safehouse for Contra gious war over the holy sites in Jerusalem, which some evan­ operators from the South on temporary assignment in Wash­ gelicals see as a harbinger of the Final Judgment. ington, and as a money-laundering front. Since leaving the White House staff, Patricia Hines has According to Hurley, Hines's takeover scheme was pro­ servedas assistant secretary of education and deputy assistant ceeding on schedule when the "Freedom Fighters' Night" secretary of the Army for education, training, and simula­ flap occurred, following which Hines and his entire group tion. She still holds the latter post. were purged from the CMA board. According to Washington sources familiar with boththe It was at that point that the protracted legal battles en­ CMA battle and the purges at Helms's office, the same char­ sued, and Hurley suddenly found himself up against a formi­ acters were behind the two incidents. These sources point to dable machinery run by Hines's "friends in high places." the Charleston, South Carolina Scottish Rite lodge as the In a highly unusual move, for example, Judge Jackson power base of this crew of would-be Confederates, all of dismissed Hurley's civil RICO suit against the Hines group whom have entered into an alliance with the Zionist lobby. without filing a written opinion. He then dismissed the In recent years, Helms has himself been inducted into the remaining civil counts with prejudice without a written opin­ 33rd degree of this lodge, a position already obtained by AID ion, despite the fact that the case was a state court matter chief Roskens. outside his jurisdiction. When Steptoe and Johnson, repre­ Some people view this SouthernJurisdiction Freemason­ senting Hines, filed under Rule 11 for financial sanctions ry as little more than a symbolic club, of little importance in against Hurley, a second CMA board member, and attorney the world of Washington power politics. But in reality, this David Bartone, Judge Jackson readily ruled in their favor. Freemasonic connection is as dangerous as it was 150 years Hurley is skeptical that he will get any better treatment ago when the Charleston lodge was the center of the British­ before the appeals court, where the matter now stands. One run secessionist movement.

66 National EIR March 20, 1992 Elephants andDo nkeys by Kathleen Klenetsky -

'Front-runners'see lengthy article on March 10, which of the current candidates, including more troubles ahead painted a grim picture of Bush's phys­ Bush, to command popular support, ical and emotional health. suggests that Quayle should get into Bill Clinton and George Bush came The article is based principally on the race. out of the March 10 "Super Tuesday" discussions with Stanford professor primaries as the putative Democratic Dr. Herbert Abrams, an expert on the and Republican front-runners, but health of world leaders, who has just LaRouche shapes they may not hold onto that status for published a book, The President Has long. Been Shot (New York: W.W. Nor­ economic debate On the Republican side, Pat Bu­ ton), on the 25th Amendment (which Although every effort has been made chanan didn't win any primaries, but governs thesuccessi on in cases where by the establishment to destroy Demo­ he continued to eat away at Bush, gar­ a President is incapacitated). cratic presidential candidate Lyndon nering anywhere from 16% ofthe vote As part of his research, Abrams LaRouche's influtlnce-heis not only in Mississippi to 32% in both Florida was given access to Bush's medical in federal prison on trumped-Up and Rhode Island. records, and came to the conclusion charges, but has �een denied federal As far as "Slick Willy" Clinton is that Bush is in danger of crippling his campaign matchi�g funds, given al­ concerned, many Democratic activ­ party's election prospects because of most no media coverage, and kept out ists harbor deep concerns that the lack of public confidence in his health of the presidentiatdebates-he never­ scandals which have dogged his cam­ "after his hospitalization for heart fi­ theless is making . his presence felt in paign are merely the tip of the iceberg. brillations and his startling collapse in the election campllign. If he wins the nomination, they fear Japan." In the Super Tuesday voting, Republicans will dredge up all sorts Abrams said that more and more LaRouche won 2% of the vote in of as-yet-unpublished dirt that will people are asking him about the possi­ Oklahoma, and 1 % in a number of knock him out of the running. bility of Bush having a heart attack, other states, including Texas and Lou­ "Bill Clinton is one shoe-dropping about whether the 25th Amendment isiana. The percentage could have run away from imploding," Democratic might be invoked, and about Dan much higher, had, LaRouche not been consultant Alan Secrest told the Quayle's chances of becoming acting blacked out by the major media, March 11 USA Today .. "The question President. which caused mary voters to believe is, where and when?" The Times is not the only press to he was not on the ballot. Exit polls continue to register an raise the possibility that Bush may be Moreover, LaRouche's policies extraordinarily high level of dissatis­ unfit to run for reelection due to his are having a definite impact on the faction with all the major candidates. medical condition. election debate over economic policy. A poll of voters in five of the Super In early March, the White House In the wake of widely viewed and en­ Tuesday primaries showed that only was forced to deny rumors circulating thusiastically received national televi­ 39% of Democrats , and 45% of Re­ in the Washington press corps that the sion shows, several of the presidential publicans, strongly favor any of their President's cardiac condition was go­ candidates have picked up on key ele­ party's candidates. ing to require a pacemaker, and that he ments of LaRouclae's platform. had already been put on nitroglycerin Jerry Brown, for example, is call­ pills. And during CBS News's cover­ ing for large-scale port development, Bush's health age of the Super Tuesday returns to be serviced by a network of high­ a campaign issue March 10, anchor Dan Rather made speed trains. several references to Bush's health And Pat Buchanan, who has here­ The state of George Bush's mental problems as a potential bar to his re­ tofore embraced II strictly "free mar­ and physical health has started to nomination. ket" approach, said he would revive emerge as a campaign issue, with pos­ Meanwhile, the Dan Quayle fan President John F. Kennedy's invest­ sibly disastrous consequences for the club continues to beat the drums for ment tax credit to spur an industrial incumbent. its favorite presidential candidate . recovery. This is an idea which The London Times. representing The March 10 Wall Street Journal ran LaRouche, alone , among U.S. politi­ an influential segment of the Anglo­ a commentary by its editor, Robert cians and economists, has vigorously American establishment, published a Bartley, stating that the failure of any advocated.

EIR March 20. 1992 National 67 congressional Closeup by William Jones

Brady pleads for tic social programs. Russ in the District as the pretext for IMF quota increase The Democratic budget would re­ ramrodding through this legislation. In testimony before the House Foreign duce defense spending authority by District police, however, faced AffairsCommittee on March 5, Trea­ about $15 billion, roughly twice that with numerous peculiarities in the sury Secretary Nicholas Brady plead­ recommended by President Bush. Russ shooting, are beginning to ques­ ed with Congress to authorize a $12 House Democratic leaders are sup­ tion whether it was the resultof a rob­ billion quota increase for the Interna­ porting the plan as are key committee bery at all. Russ was implicated in the tional Monetary Fund. Citing the chairmen including Ways and Means investigation of financial improprie­ "successful" work of the IMF in Latin Committee chairman Dan Rosten­ ties at the House Post Office, whose America and stressing the role the kowski (D-Ill.), Appropriations Com­ operations Russ was partly responsi­ Fund intends to play in eastern Eu­ mittee chairman Jamie Whitten (D­ ble for. rope, Brady warned that a failure to Miss.), Energy and Commerce Com­ Delegate Eleanor Holmes Norton pass the increase could throw a mon­ mittee chairman John Dingell (D­ (D-D.C.) called the Republican key-wrench into IMF efforts to im­ Mich.), and Transportation Commit­ moves "election year, high-profile pose its austerity conditionalities on tee chairman Robert Roe (D-N.J.). posturing. " the newly liberated countries of the The plan has met with stiff opposi­ former Soviet Union. tion from Republicans and conserva­ "The consequences of failure to tive Democrats, however, who want pass the IMF quota increase legisla­ to use the "savings" in defense for re­ Space station tion would be extremely adverse," ducing the overall deficit. targeted by Dems said Brady. "Without our support, the After rejecting the Bush budget In a press conference on Feb. 27, a IMF quota increase cannot go into ef­ proposal by a 370-42 vote, as well as week after the Bush administration fect. This will threaten the West's en­ a budget proposal presented by the forced the resignation of NASA Ad­ tire response to the new states of the Congressional Black Caucus, Con­ ministrator RichardTruly , Rep. Rich­ former Soviet Union, and seriously gress passed a budget of $1.5 trillion ard Durbin (D-Ill.), the chairman of erode U.S. leadership in the IMF at a on March 5. The Democratic budget the House Budget Committee Task critical turning point in history. " resolution contains two budget op­ Force on Space, and Sen. Dale Bump­ If the increase is not approved, tions, depending on whether the Con­ ers (D-Ark.) announced that they and opposition to it is strong, Brady yers amendment passes. would move to eliminate funding for warned that the Japanese and others the space station. The move is an at­ could renege on their pledges to the tack on manned space programs. Fund. Durbin said that he was joining Senate Republicans move with Sen. Albert Gore (D-Tenn.) in for tougher crime bill reevaluating the fundingfor the space Desperate for election campaign is­ station. The aim would be to reduce sues, Senate Republicans have intro­ the NASA budget by $13 billion. Dem leadership would duced a crime bill even more grisly There are "more projects [in the bud­ scrap budget agreement than the one narrowly defeated last get] than we can afford," said Durbin, The House Democratic leadership is year. who claimed that there was "no scien­ supporting a bill introduced by Rep. The proposal incorporates most of tific research project on the drawing John Conyers (D-Mich.) which would the more barbaric aspects of last board that cannot be done by un­ alter last year's "budget pact" between year's bill, but dropped the five-day manned space vehicles." the White House and Congress. Last waiting period for handgun purchases Contradicting testimony by repre­ year's agreement divided the budget opposed by most Republicans. A sentatives of the National Institutes of into three major at'eas, domestic, in­ threatened filibuster over this issue Health before congressional commit­ ternational, and defense, and stipulat­ stopped passage of the previous bill. tees earlier this year where they under­ ed that new outlays in one area must be The new crime proposals also au­ scored the importance of space medi­ compensated by cuts within the same thorize the death penalty for felony cine, Durbin claimed that the NIH area. The Conyers amendment would murders in the District of Columbia. would rather have the funds for their break down that "firewall" to allow The Republicans are using the shoot­ own research than give them to defense savings to be spent on domes- ing of House Sergeant-at-Arms Jack NASA.

68 National EIR March 20, 1992 Durbin cited a General Account­ the anniversary of the war by lashing whether procedures were followed by ing Officereport which questioned the out against Iraq, vowing no let-up un­ the intelligence agencies in informing funding needs of the space station. til Iraqi President Saddam Hussein is congressional committees responsible Sen. Jake Gam (R-Utah), one of the overthrown. for intelligence oversight. "The reve­ few members of Congress to have Making an outlandish comparison lation that intelli$ence sharing with flown on the Space Shuttle, said in between the Iraqi turkey shoot and the Iraq continued well into 1990 also floor statements on Feb. 27 that he U.S. Civil War, and blasphemously raises new questions about the admin­ considered it ridiculous for the GAO quoting Abraham Lincoln, Lieber­ istration's reporting to the Senate and to tryto predict how the futurebudgets man demanded that there be "no eas­ House intelligence committees," said will look, "since indeed, it is the Con­ ing of sanctions while Saddam rules. " Gonzalez. "Based on the fact that the gress, throughour own actions, which He also called for increased support to Senate Committee report on the Gates will determine the future for NASA the Kurdish, Shiite, and Sunni oppo­ nomination contains a misleading date programs and our nation." nents of Saddam, recognition of "a for the end of the intelligence-sharing provisional government comprised of arrangement, I wonder if they were Kurds, Shiites, and Sunnis," and properly informed." "protecting that government's exis­ Gonzalez recommended that these tence in areas of Iraq outside of Sad­ issues be addressed in public over­ Finance Committee okays dam's control." sight hearings. tax cut, veto threatened Lieberman also proposed Ameri­ The Senate Finance Committee ap­ can surveillance flightsover Iraq, sup­ proved on March 3 a Democratic tax plemented by flights of combat air­ package that includes a $300tax credit craft, "a reminder that we mean for the children of middle-class fami­ business." "Normal practices of di­ Freshman GOPers want lies and a tax increase for the upper plomacy," said Lieberman, should House bank scandal names tax brackets. The bill was approved by not be applied when dealing with "in­ House Republica!). freshmen are tak­ an 11-9 vote along strict party lines. ternational outlaws." ing the lead in demanding full expo­ The legislation, crafted by Fi­ sure of those cOQgressmen who ran nance Committee Chairman Lloyd overdrafts on their accounts at the Bentsen (D-Tex.), is a variation of the House Post Office. The scandal sur­ seven-point package presented by faced when Democrats proceeded President George Bush in his State of Gonzalez questions with an investigation of the "October the Union message in January, but in­ Gates's veracity Surprise. " cluded the middle-class tax cut and a As partof his continuing investigation About 20,000 bad checks have smaller capital gains tax reduction of the Banca Nazionale del Lavoro, been written at the House Post Office, than that proposed by the President. House Banking Committee Chairman but no action has been taken against The bill is facing a certain veto by Henry B. Gonzalez (D-Tex.) pre­ the offending congressmen. The only President Bush, but will serve Demo­ sented more information in floorcom­ consideration taken by Post Office crats in their attempts to profile them­ ments on March 9 that CIA head Rob­ managers was that overall monthly selves as being for "tax fairness"­ ert Gates may not have been candid deposits covered overall monthly their own election issue. about continued intelligence-sharing withdrawals. The practice has been with Iraq after the Iran-Iraq War. followed since 1832. Information received by the Bank­ Republicans believe that in the ing Committee shows that the intelli­ present atmosphere of supposedly gence-sharing agreements with Iraq strict "ethical propriety," the scandal Lieberman calls for during the Iran-Iraq War continued could hit Democrats in the upcoming holy war against Saddam until May 1990, a fact which contra­ congressional elections. Rep . John In a significantescalation of the "war dicts statements by Gates to the Senate Kyl (R-Ariz.) said that more than 50 of words" in the U.S. Senate, Sen. Intelligence Committee in October members had been overdrawn by Joseph Lieberman (D-Conn.), one of 1991 where he stated that the arrange­ more than one month· s pay at least the more pro-Bush Democrats during ments had been terminated in 1988. once, and "scores" had written more Operation Desert Storm, celebrated Gonzalez is also questioning than 100bad checks.

EIR March 20, 1992 National 69 National News

federal judge has scheduled a hearing in Ab­ all medical personnel who have contact with ingdon, Virginia on March 16 that may de­ patients would be urged to take precau­ lay the cutoff. tions to prevent transmission of HIV an!! George Bush's son said Bush Secretary of Labor Lynn Martin hepatitis B. has opposed a plan that would restore the in insider trading scam financial solvency of the funds through an George W. Bush, President Bush's oldest industry-wide tax and a transfer of funds son, is involved in an insider trading scam, from solvent pension fund trusts. The plan according to a March issue of U.S. News is an initiative of Sen. Jay Rockefeller (D­ Castration approved in and World Report. W. V.) that is part of the Senate Finance The younger Bush sold $848,560 of his Committee's proposed tax legislation. A molestation plea bargain stock in Harken Energy Co. just before the group of non-union coal companies in Vir­ Houston, Texas Judge Michael McSpadden share prices began to plunge because of a ginia, favored by state Attorney General of State District Court agreedon March6 to poor earningsreport. At the time of the sale Mary Sue Terry and the state's right-to­ the request of an accused child molester, 28- last June 22, Bush was a member of a com­ work law, say that the Rockefeller plan year-old Steven Allen Butler, a father of one, mittee formed by the Dallas-based oil com­ could increase the cost of ton of Virginia to be surgically castrated rather than serve a pany to study the effects of a corporate re­ coal by 15¢ per ton. possible life sentence. In return, the judge structuring . The magazine reported that said he would sentence Butler to 10 years Bush's stake in Harken, and his insider role, deferred adjudication, a form of probation. stemmed from Harken's takeover of another The decision was harshlycriticized by crit­ oil company that he helped found. As a ics who stressed that child molestation has member of the restructuring committee, CDC guidelines on more todo with violence and the need tocon­ Bush had "detailed knowledge of the finan­ trol, not sex-drive. "This is not the answer," cial pressure Harken was under and of the AIDS under attack said CassandraThomas, presidentof the Na­ demands being placed on the company by The Atlanta, Georgia Centers for Disease tional Coalition against Sexual Abuse. "It its creditors," the magazine reported. Control (CDC) guidelines on testing health sounds good. It makes you feel good, but in Throughout the 1980s, the Reagan­ care workers for HIV infection are causing the long haul it doesn't deal in any way with Bush administration actively protected the confusion about what preventive measures the basic issues of sexual assault." interests of corporate raiders , leverage buy­ should be taken to protect patients from ex­ Philip Reilly, who wrote a book on the out specialists, and greenmail looters that posure. history of involuntary sterilization in the gutted American industry. Between 1985- States have until Oct. 28 to use the vague United States, asked: "Would you allow an 86, some 31 pieces oflegislation were intro­ CDC guidelines, or develop "equivalent" 18-year-old boy who stole a car three times duced into Congress to stem what became policies to reduce the risk of patients con­ to say, 'Cut my hands off so I won't do it known as the "Decade of Greed," but were tracting the AIDS virus frominfected physi­ again?' " vigorously opposed by the Reagan-Bush ad­ cians, dentists, and other health care work­ ministration. ers, afterwhich they will not receive federal grants from thePublic Health Service. Only seven states have passed laws and 19 have introduced bills related to infected health Phone customers to care workers . UMW protests loss An article in the March 3 Washington pay for FBI wiretaps? Post showed the absurdity of the CDC's lack The Bush Department of Justice has pro­ of health benefits of policy for mandatory testing for all. "The posed that the nation's telephone companies Hundreds of retired coal miners from the risk of a physician contracting the virus from install expensive equipment designed to fa­ United Mine Workers union from around an ·infected patient is far greater than the cilitate FBI and police wiretaps of citizens, the nation picketed the Department of Labor reverse," it read. There are 47 reported such and authorize the phone companies to pass in Washington on March 10 to protest the cases, according to CDC. the costs on to customers. impending loss of the Union's health care "Since the CDC has not issued final According to an AP story on March 6, benefits. guidelines, it is difficult toknow what would the proposal was drafted by the FBI and the As many as 120,000 retired miners and be considered equivalent," a director for Justice Department in response to dramatic their families have been told their health HIV-AIDS at the Association of State and advances in telephone technology, which benefits could be cut off in mid-April be­ Territorial Health Officials told the Wash­ have complicated the practice of installing cause of the debts of the two health benefit ington Post. taps on regular phone lines. New digital trusts that pay for the health care, the March CDC guidelines recommend that HIV­ transmission and switching systems pass 7 Richmond Times-Dispatch reported. Life­ infected physicians and dentists not perform conversations through central stations in a long health care has long been included in invasive procedures without a patient's con­ disassembled form , making obsolete the old UMW contracts throughout the industry. A sent. Health workers would be tested, and methods of tapping a residential phone at

70 National EIR March 20, 1992 Brilfly

• JEWISH Defense League head Irv Rubin was arrested In Los the central switch. The FBI has previously "According to the scientists, the cultiva­ Angeles and cparged in a conspiracy demanded, and been denied by Congress, tion methods of the coca farmers are based • to commit murder, police said, AP authority to force the phone companies to on traditional agricultural and ecological reported on March 8. In 1985, Rubin, build electronic "trap doors" which would knowledge. Coca plants would also, evi­ 46, had succeeded Meir Kahane. allow the governmentunrestricted access to dently, be able to grow without chemical the computer-encrypted digital phone traf­ pesticides, because the substance contained • VICE PRESIDENT Dan Quayle fic.The proposal would mandate that phone within the leaves (alkaloid) repels insects. was asked at a press conference in companies cooperate with the FBI, and stan­ "Economically equivalent alternatives South Carolinaon Feb. 28 if theUnited dardize the necessary equipment. to coca cultivation . . . don't exist, the re­ States intended to respond to the U.N. The proposal would prohibit phone searchers claim. Coca leaves could be har­ human rights query regarding the per­ companies and private exchanges from uti­ vested up to three times a year and bring in secution of Lyndon LaRouche. When lizing equipment which doesn't comply higher prices than other agricultural prod­ pressed, Quayle finally said, "Yes, we with the new standards, which are to be set ucts. In the Bolivian highlands, the labor­ will definitely respond." by the Federal Communications Commis­ intensive cultivation of coca is the most im­ sion. The phone companies would have 180 portant factor in the economy. . . . • 'NASA is expectedto put out a sec­ days to change their equipment, the specific "In Bolivia, estimates are that 120,000 ond ozone report any day now," re­ methods by which the taps would be done tons of coca leaves are produced each year. tracting its initial alarmist position on would remain secret, and the bill would give Illegal drug traders buy up 90% of the har­ the "ozone hold" of Feb. 3,aWall Street the attorneygeneral power to seek court in­ vest, and manufacture it into cocaine paste. Journal editorial reported on Feb. 28. junctions against companies that violate the . . . Experts estimate the proceeds from ille­ The editorial warnedthat by such politi­ regulations and collect civil penalties of gal coca sales to besome 20% of the Bolivi­ cal use of NASA, "The administration $10,000 a day. The FCC would be author­ an gross national product." is, of course, putting the NASA space ized to allow phone companies to raise rates program in jeopardy." to cover the costs of the equipment, which will be many millions of dollars, according • BETH OSBORNEDAPONTE, to estimates. who calculated the 1991 Iraqi death Critics of the proposal say that the FBI Milk lift a 'crack' tolls for the Census Bureau, has has never made a clear case why its current found her work classified, her files methods are not working, and are de­ in Iraq embargo destroyed, add has now been in­ manding public hearings on the measure. The milk lift to feed Iraqi children sponsored formed that shewill be firedfrom the by the Food for Peace organization "is one Center for International Research of small crack in the deadly embargo," Monsi­ the Census Bureau. She reported that gnor S.J. Adamo reported in his regular col­ 89,194 men, 39,612 women, and umn in the March 7 Philadelphia Daily 32,195 children died as a result of the U.s. Embassy in Bolivia News. Gulf war and the sanctions. Entitled "Embargo Is Killing the Chil­ funded pro-drug study dren of Iraq: They're Paying the Price for • AN ENVIRONMENTALIST The U. S. Embassy in Bolivia has funded a U . S. Policy," Adamo reported that Food for gathering of �Iigious and scientific study claiming that coca production helps Peace "has managed to convince farmers leaders will take place in Washington the ecology and the economy, the Feb. 21 from eight states to tum surplus milk into in May, charlatan scientist Carl Sa­ German daily Frankfurter Rundschau re­ milk powder so it can be shipped to Iraq to gan revealed in the March 1 issue of ported. Bolivia is the success model cited save the children from starvation." Parade magazine. A key purpose of by "shock therapy" advocate Jeffrey Sachs, Farmers are contributing to the milk lift the meeting will be to affirm support who has admitted that his economic policies to dramatize their need for higher milk pric­ for radical action on the environment have forced Bolivians into coca production. es, and the severe food shortages throughout and population control. The article read: "Coca plants contribute the world, and as a way of avoiding dumping to the maintenance of soil fertility on the milk. The effort is being coordinated by the • A LAND development scheme, stony slopes ofthe Bolivian Andes, and pro­ Committee to Save the Children in Iraq, as reported in the March 8 New York tect the land from erosion. A U.S. Embassy­ which was founded in 1991 by His Beatitude Times, may involve Democratic funded study of the 'Center for Ecological Raphael Bidawid, Partiarch of the Chaldean presidential candidate Gov. William Research and Integrated Development,' lo­ Catholic Church, Helga Zepp-LaRouche, Clinton of Arkansasin a new scandal. cated in the Bolivian city La Paz, has come chairman of the Schiller Institute in Germa­ Political appointees of the governor to this result. The researchers thereby ex­ ny , and Dr. Hans Koechler of the Interna­ implemented proposals suggested by press opposition to the reports of the govern­ tional Progress Organization. his wife, Hilary Clinton, to keep a ment , which claim that coca leaves extract "The calamity that is descending upon savings and loan used to subsidize the minerals from the soil and make it infertile. Iraq is the result of the new barbarism," scheme from going under. From coca leaves, cocaine is produced. Monsignor Adamo charged.

EIR March 20, 1992 National 71 Editorial

Communityof natio ns must prevail

According to the Pentagon leak which appeared in the again . This is not merely a question of the fact that March 8 New York Times, there is now aU. S. strategic American industrial potential has been gutted, but that military plan which baldly asserts Anglo-American as­ the culture which made the United States an industrial pirations to become the new Rome . To quote the Times, giant has also been destroyed in the process. Wide­ the policy asserts: "America's political and military spread drug abuse and the collapse of the family are mission in the postwar era will be to ensure that no rival symptoms of this cultural decay. superpower is allowed to emerge in western Europe , While the collapse of the Soviet system is obvious, Asia, or the territories of the former Soviet Union." the more profound collapse, in terms of global effects, This , of course, is not a new policy, but a reasser­ is the ongoing economic collapse of the Anglo-Ameri­ tion of the same British imperialism which brought us can system, a self-induced collapse. This collapse tends . two world wars . This is the policy which is drawing to evoke acute disorientation and demoralization for the nations of the world, apparently ineluctably, into those who lived in the former Soviet system and within yet another global conflagration. In the period leading the Anglo-American domain. up to the First World War, and then with the Versailles The Versailles system put into place after the end Treaty , the post-World War I pre-World War II decades of World War I is dead, but what is to replace it? If we . of the early 20th century , we saw a determined British are not going to move into a period like the Thirty effort to prevent Germany or Russia, or any other na­ Years' War of the 16oos, which reduced the population tion , to become a rival to British imperial aims. of Germany and Austria by half-but this time ·on a The British Empire at that time was not an awesome global scale-or some other hellish variant of a third threat, not a mighty superpower-indeed, for that very world war, then we must learn from history. reason the economic vitality of Germany was a threat What is needed, is an alternative to the doomed the British were not prepared to tolerate . The United Versailles system. It's just a matter of time before the States was also potentially a threat to the British, except whole thing falls apart. Therefore , the question is, to for the fact that there was a treacherous group of Anglo­ propose immediately counter-policies for a global sys­ philes-Teddy Roosevelt is a worst example-who tem based on the political economy of Hamilton, List, were determined to make the United States the battering and their co-thinkers , and on the sovereignty of nation­ ram for the British Empire . states . The British plan for the United States was, pure and What is needed is an understanding by ordinary simple , to reassimilate it into the British Empire . Thus citizens of at least the last 200 years of history, so that they intended to make U.S. industrial strength an asset they can prepare themselves for this moment when for their plans of world domination . They would start the "little" people are called upon to undertake great the wars , and the Americans would win them . This responsibilities. The United States was born of a great worked for the British in two world wars , but now they struggle against the very same British imperialism have a problem: While they have subverted the United whose policies now threaten to become institutional­ States from being the world's leading republican force, ized as U.S. official military-strategic doctrine. We to being a puppet of British imperialist policy, they cannot allow this to happen. have at the same time , and for that very reason, de­ It is the principles of American System economics, stroyed U.S. economic might. of the defense of national sovereignty and of the rights Whereas in the First and Second World Wars , the of men , which must again become the rallying cry u.S. came to the rescue of a British Empire which for a new community of nations based upon the great otherwise would certainly have been defeated by the republican principles for which the American Revolu­ Germans, only a fool would count on that happening tion was fought .

72 National EIR March 20, 1992 EIR Audio R�l�o�t antidote' Your weekly � fo r New World .Order 'news� Exclusive news reports.. and interviews Audio statements by Lyndon LaRq uche

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Can Europe Stop the Wo rld Depression?

EIR Special Report

The best overview to date of the LaRouche "The ruin of developing countries and the "Productive Triangle" proposal, which is becmning deepening economic depression in the English­ world-frunous as the only serious solution to the speaking world make clear that the system of present worldwide economic breakdown. Adam Smith is no more capable than that of Karl Marx to provide a solution to the economic $100 misery of eastern Europe. "What is required is a 'grand design' of European policy, which not only masters the task of reconstruction but simultaneously Make check, or money order payable to: contributes to world development and peace. �TImNe",s Service Such a plan is Lyndon LaRouche's proposed 'Productive Triangle' program." P.o. Box 17390 Washington, D.C. 20041-0390 -from the. Berlin Declaration, Mastercard and Visa accepte�, March 4, 1991

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