Executive Intelligence Review, Volume 20, Number 20, May 21, 1993

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Executive Intelligence Review, Volume 20, Number 20, May 21, 1993 The Civil War And the American System tells the truth-for the first time-about the "Civil War," which was in fact the battle between the American System of economics and the British system of free trade. Today the heirs of Adam Smith and the British Empire are pressing for worldwide "free trade," a system which led to slavery in the 19th century, and is doing so again today. Utilizing a rich selection of primary-source documents, Salisbqry reintroduces the forgotten men of the Civil War-era battle for the American System: Mathew Carey, Henry Carey, William Kelley, William Elder, and Stephen Colwell. Together with Abraham Lincoln, they demanded industrial-technological progress, against the ideological subversion of British "free trade" economists and the British-dominated Confederacy. Order today from the publisher: EIR News Service P.o. Box 17390 Washington, D.C. 20041-0390 or call Ben Franklin Booksellers (800) 453-4108 (703) 777-3661 fax (703) 777-8287 Visa and MasterCard accepted Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Managing Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, et me draw your attention to the extrao"rdinary box in our cover Carol White, Christopher White L Science and Technology: Carol White Feature, on page 23. Here we find former CIA director William Special Services: Richard Freeman Colby proclaiming that the current flooding of Russia with contra­ Book Editor: Katherine Notley Advertising Director: Marsha Freeman band Marlboro cigarettes provides the basis fo r an economic recov­ Circulation Manager: Stanley Ezrol erythere , just as-he claims-the "Lucky Strike economy" put Italy INTELLIGENCE DIRECTORS: on its feet after World War II. Agriculture: Marcia Merry As Roger Moore reports, it is now a widespread practice for Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, Russian workers to be paid in cigarettes, which .are worth more on Paul Goldstein Economics: Christopher White the black market than rubles. European Economics: William Engdahl In Colby's view, the smugglers accumulate capital for the econo­ Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus my's growth; they are followed by small retailers, who are followed Medicine: John Grauerholz, M.D. by wholesalers, who are followed by "producers" ,(of what? tobacco? Russia and Eastern Europe: . ?) Rachel Douglas, Konstantin George opIUm .. Special Projects: Mark Burdman This insane analysis sums up what is wrong wjth the U. S. econo­ United States: Kathleen Klenetsky my today. We have built a giant bubble upon "the services sector"­ INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura real estate, drugs, pornography, entertainment, the derivatives mar­ Bogota: Jose Restrepo ket-while we have gutted the productive branches of industry and Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen agriculture upon which any economy rests. Now, using the enforcing Houston: Harley Schlanger power of the International Monetary Fund, we are telling the devas­ Lima: Sara Madueno Melbourne: Don Veitch tated nations of the former communist world that! they should repeat Mexico City: Hugo Lopez Ochoa our blunders. Milan: Leonardo Servadio New Delhi: Susan Maitra EIR is pleased to report, however, that there is another side to Paris: Christine Bierre the story: Two representatives of the Schiller Institute travelled Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson to Moscow to present Lyndon LaRouche's economic program to Washington, D.C.: William Jones a distinguished conference of economists and political figures Wiesbaden: G6ran Haglund (page 4). EIR (ISSN 0273-6314) is published weekly (50 issues) The Clinton administration today is a welter of conflicting views except for the second week of July, and the last week of December by EIR News Service Inc., 3331h and policy impulses, as you can see by the stories leading our I nterna­ Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-70/0. For subscriptions: (703) 777- tiona I and National sections this week. The issue of economic policy 9451. is of decisive importance, and the President must move quickly to European Headqualfers: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, repudiate the free market idiocy expressed by Colby, and to adopt 0-6200 Wiesbaden, Otto von Guericke Ring 3, 0-6200 Wiesbaden-Nordenstadt, Federal Republic of Gennany LaRouche's program in full. i Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Michael Liebig There is not a minute to lose. In a May 13 radio interview from III Dellmark: EIR, Post Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 prison, LaRouche emphasized that we are nearing a point of no III Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 return, as far as the crisis in Russia goes. Unless there is a dramatic Colonia San Rafael, Mexico DF. Tel: 705-1295. Japan subscription sales: O.T.O. Research Corporation, change in the direction of LaRouche's economic policies within the Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. next 30-60 days, he said, "the world is going to slide, irreversibly, Copyright © 1993 EIR News Service. All rights reserved. over the coming months and Reproduction in whole or in part without pennission strictly years, into a kind of hell beyond the prohibited. Second-class postage paid at Washington D.C., imagination of virtually every American." and at an additional mailing offices. Domeslic subscriptions: 3 months-$125, 6 months-$225, 1 year-$396, Single issue-$1O Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. - ITillContents Interviews Science & Technology Economics 14 Linden Blue 14 U.S. firm, Russians to 4 LaRouche's economics is The vice chairman of General build modular helium posed in Moscow debate Atomics describes his company's reactor At a meeting of the Russian pioneering agreement with Russia The benefits of the gas turbine Institute for Strategic Studies, two to jointly develop a modular high­ modular helium reactor developed representatives of the Schiller temperature gas-cooled nuclear by General Atomics are enormous, Institutepresented Lyndon reactor. and would draw on Russia's great LaRouche's alternativeto the scientific resources, says GA Vice IMF's disastrous "shock therapy." 48 Yves Dubois Chairman Linden Blue. The editor-in-chief of France 3 6 Blast against monetarism regional television and president of in Russia cites LaRouche Coordination Alsace-Sarajevo tells Book Reviews Prof. Taras Muranivsky writes in a how his group managed to send a leading Moscow daily. convoy of trucks carrying food and 66 George Bush's legacy of medicine to Bosnia. mismanagement in East 7 Central Asia opens up to oil Europe policy multinationals 53 John Ascher At the Highest Levels: The Inside A leader of the political movement Story of the End of the Cold War, 8 Currency Rates of Lyndon LaRouche in Maryland, by Michael R. Beschloss and Ascher's wife is a political prisoner Strobe Talbott. in Virginia. He discusses his recent 11 Agriculture visit to Colombia to mobilize Move for "sustainable" farming support for human rights in the under way. United States. 12 Business Briefs Photo and graphic credits: Cover, EIRNS/Jerry Belsky. Page 15, Departments General Atomics. Pages 21, 23, 25, EIRNS. Page 26, EIRNS/Philip 9 Report from Bonn Ulanowsky. Pages 35, 40, 47, Debt moratorium is becoming EIRNS/Stuart Lewis. Page 38, popular. U.S. National Archives. Page 42, EIRNS/John Sigerson. Page 53, 10 Dateline Mexico Suzanne Klebe. Church: No limits to growth! 55 Report from Rio Will Brazil take the Fuj imori route? 67 Music Views and Reviews Eve Queler presents a bel canto gem. 72 Editorial Time to get going on fusion. - Volume 20, Number 20, May 21, 1993 Feature International National 34 Clinton State Dept. adopts 58 Paris and London undercut Bush line on Ibero-America Clinton's policy on Bosnia Once again, the United States is Senator Biden put it sharply: "I backing the governments it ought to can't even begin to express my be opposing, while seeking to anger for a European policy that's undermine its best potential allies. now asking us to participate in what amounts to the codification of a 37 Taiwan is joining Beijing in Serbian victory." Actually, it's not the destruction of China a "European" policy, but the policy The headquarters of Philip Morris, Inc. in Richmond, of a new Entente Cordiale between Virginia. Philip Morris's Marlboro cigarettes have Paris and London. become hot currency in the growing organized crime 39 South Africa on the way to Documentation: underworld of eastern Europe and Russia. repression with a Gen. Paul-Albert Scherer (ret.) of Germany calls for 'democratic' face 20 IMF free-traders turn E. immediate, unilateral U.S. military action. Europe into smuggler's 41 Tajikistan and paradise Afghanistan: Have two 60 Suall a target of California Roger Moore reports on the hotbeds of war merged into flooding of Russia and eastern spy probe one? Europe with contraband cigarettes, drugs, and prostitution: the 61 The psychiatric shock 44 Helga Zepp-LaRouche International Monetary Fund's troops bebind Waco "free trade" policy in action. announces run for German . chancellor post 63 Farrakhan dispels media 23 Former CIA chief hails image Russian black market 46 Sweden's Schori wants 'U.N. new order' over 65 Battle int�nsifies over Bosnian dead bodies 28 Philip Morris, Inc., the masonic statue cash crop warrior 48 Alsace-Sarajevo relief 68 Congressional Closeup 31 Dope trade in Russia: 'a convoy forces a breach An interview with Yves Dubois. real gold mine' 70 National News 50 32 Organized crime makes Eyewitness to terror in power bid in Ukraine Croatia 53 Colombians told of political persecution of LaRouche An interview with John Ascher.
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