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.

56 International Intelligence .. �TIillEcononrlcs

LaRouche's economics is posed in Moscow debate

by William Engdahl

There appears to be a far healthier debate over fundamental national security, and economic policy. economic policy inside Russia than is evident from most The seminar provided the occasion to place the economic western media coverage. Based on discussions with a broad perspective of LaRouche at the center of the intense Russian range of Russian policymakers and economists, the picture policy debate. The meeting took place only days after the which emerges is a broad-based rejection of the dangerous April 25 Russian referendum, which had given a clear "yes" demands of InternationalMonetary Fund (IMF) "shock ther­ to continued reform in Russia, but with no clear mandate for apy" and a serious effort to find the unique resources and a given economic course. The mood was one in which all strategy for a transformation of the economy based on the felt the process of change to be irreversible, but the content cultural and historical specificsof Russia, rather than a fool­ of reform policy was by no means agreed. ish mechanical formula for "world market price" reform and budget balancing as demanded by the Group of Seven (G-7) The results of shock therapy industrialized nations since theJuly 1990 Houston economic The results of more than one year ofIMF-mandated mon­ summit. etary "shock therapy" in Russia, implemented in January Two representatives of American economist Lyndon 1992 under then Economics Minister Yegor Gaidar, were LaRouche, from the Germany office ofthe Schiller Institute, starkly outlined by V.1. Milovankin, a representative of the were invited to a two-day seminar May 5-6 in Moscow, Russian Ministry of Economics. "Since the first quarter of organized by the Russian Institute for Strategic Studies 1992," he noted, "Russia's na�ional income has fallen 20%, (RISS). The seminar was on the theme "Financial Strategy of while retail prices have increased 32-fold on average. In the Economic Reform ." The seminar itself was an unusually 1993, we expect little improvement, with output falling an­ well-chosen selection of a broad range of viewpoints, both other 7- 12%, unemployment rising by some 3-5 million, and from the Russian side as well as from western invited guests. another sixfold price increase." Included were senior Russian government representatives Milovankin pointed out that today, debts between state from the Central Bank, the Economics Ministry, the Foreign enterprises, incurred as a direct consequence of the IMF's Ministry , the Supreme Soviet, and several economic policy demand for a zero state budget deficit, totalled 3.8 trillion institutes, as well as the Russian Academy of Sciences. For­ rubles, up from almost nothing a year ago, while the budget eign guests included representatives from the embassies of deficit itself is another R 1.6 trillion, 11% of GNP. In the the United States, Japan, and Poland, a former member of firstthree months of this year. fuel and energy sector output the Austrian government, and several western economists fell by 15% and machine constructiondropped 14%. Overall, . and banking representatives. investment into rebuilding Russia's crumbling industrial The RISS was established in February 1992 by a decree plant and equipment fell by 56% in 1992, the first year of from President Boris Yeltsin to provide information and anal­ "shock therapy." These figures provided the background for ysis for the highest bodies of executive as well as legislative a vigorous debate about the fundamentals of Russia's eco­ power in Russia. Its domain encompasses issues of defense, nomic change.

4 Economics EIR May 21, 1993 • A Marshall Plan for Russia? ing Russia's economic course. A central theme of the deliberations was a proposal drawn The background to the insistence on the IMF role, Engdahl up by the largest Austrian bank, Bank Austria, outlining noted, is the 1904 Halford Mackinder policy of "British geo­ ideas for a new Marshall Plan for Russia and easternEurope . politics," which mandates that industrial cooperation between The proposal , in sharp contrast to present G-7 efforts, sets a Russia and continental Europe, notably Germany, is to be realistic target of an estimated $300 billion annual investment prevented at all costs. "This doctrine became live, operational need in Russia and the other republics of the former Soviet policy afterthe fall of the Berlin Wall in 1989, and the collapse Union and eastern Europe. Of this total , an estimated $70 of the Warsaw Pact," Engdahl stressed, citing a floodof arti­ billion per year would be required from foreign capital­ cles from British and U.S. strategists including Henry Kis­ not an awesome sum when the alternatives of chaos and singer. "In 1989, not just one of the world superpowers, Mos­ instability are taken into account-with a specific"Marshall cow , was bankrupt," he noted. "The second, the United Plan" fund providing some 10% of needed investment, or States, and with it Britain, also entered into the beginning of $180 billion over six years . Unlike the present G-7 aid to the worst depression since the 1930s. Only, sadly, outside the Russia, in which all is contingent on self-defeating IMF aus­ role of my organization, there is not yet a similar debate about terity conditionalities, the new proposal would draw upon fundamentals of economic policy taking place in the United help from a broad range of OECD countries. States or the West," Engdahl stated. Speaking on behalf of Bank Austria, Helmut Bohunovski He then pointed to the leading opponent of this geopoliti­ addressed the current problem of lack of westernbank credits cal madness, American economist Lyndon LaRouche, "a for Russia. "Westernbanks today cannot give credit to Russia man whose name is well known in leading Russian quarters." without government guarantee," he noted. "But we face a LaRouche's 1989 proposal for an advanced high-speed rail real danger of technological collapse if Russia cannot get infrastructure policy to eastern Europe and Russia, and credit to import needed machines from the West to rebuild LaRouche's long-standing, vocal opposition to IMF policy industry. Right now, Russian debt trades at 20% of par value in Ibero-America, were then laid out. on western secondary markets . Banks have strict audit con­ Jonathan Tennenbaum of the Schiller Institute then pre­ trols from their governmentregulators which make it impos­ sented LaRouche's role since 1981-82 in proposing Russian­ sible to expect them to extend needed credits. Western gov­ U.S. joint cooperation to develop anti-missile defense tech­ ernments must change this restraint to enable banks to lend." nologies based on "new physical principles." He pointed out To help overcome this bottleneck, Bohunovski proposed that LaRouche's Strategic Defense Initiative proposal was bank "pre-export financing," with westernbank partners pro­ intended from the outset to be a technological catalyst for viding bridge credits to a Russian firm importing needed reviving the collapsing industrial structures of Russia's econ­ machines collateralized by that firm's raw material or other omy, and of shifting the negative trend in OECD economic output, for, say, a 12-month period. "The Russian firmneeds policies visible since the oil shocks of the 1970s. The April to import machinery to resume production , but cannot pay 2 Izvestia article reviving the essence of LaRouche's original hard currency cash up front," he stressed. In this scheme, the SDI technology-sharing concept in regard to advanced R&D bank creditor gets the physical goods and acts as a kind of developments by Russia on plasmoids and other areas, was clearing house in countertrade. "From its side, Russia must cited by Tennenbaum as a most encouraging development also act to remove barriers such as the overly complex export which should be pursued. licensing, duties, and duplicative division of administrative He developed the 1989 LaRouche proposal for a high­ responsibility." He stressed that in such an emergency ar­ speed rail infrastructure, "a Eurasian infrastructure alliance," rangement, the western bank, with support of its home gov­ to link the industrial capacities of central Europe to the CIS ernment, must be in a position to ensure that the credits region. He stressed that only such an infrastructure and tech­ go directly to areas which are needed to revive the civilian nology-led approach can rebuild the collapsing economic economy, and not to feed the flourishing underground mafia capacities of Russia and easternEurope . economy which has grown up as a result of the IMF monetary The comments of the two LaRouche representatives drew shock since 1992. an immediate response from Prof. Andrzej Brzeski of the Uni­ This writer delivered an analysis of the economic situa­ versity of Californiaat Davis, speaking on behalf ofthe Heri­ tion in Russia and globally. 'This IMF program for Russia tage Foundation, an extreme "free market" organization was self-contradictory and self-defeating," Engdahl told the based in Washington. "The way to stop inflation in Russia is group. "It produced the predictable result of economic chaos simple: Stop the supply of money." No matter that in Russia's and breakdown. The obvious question is, are the economists state-owned economy this means bankrupting the totality of of the IMF incompetent or do they willfully impose such industrial and agriculture production. "Economic shock ther­ chaos?" He then outlined the political decision from the Bush apy has not yet been tried in Russia, .and this is the problem. and Thatcher governmentsin the July 1990 Houston econom­ If you look at Poland, where it has, there things are improving ic summit to place the IMF in the inappropriate role of dictat- visibly," he insisted. He warned, in an intervention which

EIR May 21, 1993 Economics 5 has to be characterized as comic, that the "proposals of the which means inefficient bottlc;necks on the borders to the LaRouche people would mean a return to Stalin economics western markets. We must think of developing new types of for Russia." The audience seemed less than convinced. advanced rail transport which �illiink us with western Eu­ rope , Moscow-to-Paris, and so on. We must shiftour gauge A Euro-train project to the European standard. We h,ve the ability to build modem At the end of the two days, Dr. Yuri Stsepinsky, director of rolling stock. Russia can prodUce modem rail engines. We the RISS, presented a promising proposal. He pointed to the must also think in terms of building a maglev link between unavoidable reality that fu lly "60% of Russia's economic re­ Moscow and the West." sources arelocated in defense-related production and research." He also suggested cooperatiCllin the areaof telecommunica­ To simply let this go in an IMF-style "freemarket" sell-off would tions. "The West to date has sought to allocateto us a very narrow beunrealistic . "No country in the world has the situation where role in providing rocket boostel1S. But we have, for example, the state simply cuts loose all its military hardware." very reliable small-scale nuclea( powerreactor technology for Instead, Stsepinsky proposed transforming these R&D communications satellites, but tile firm producingthem is under and industrial capacities into rebuilding the infrastructure and attack from rival western competitors wholack such capacities. economy of Russia and eastern Europe. "Why not develop We are willing to sharesuch technologies with westernpartn ers, a 'Euro-train' project? Now Russia has a broader-gauge rail but it must be on a legitimate b�is."

Milton Friedman: Whoever is (Stronger and sneakier will Blast against monetarism survive at the expense of weak�r and honest people. Mon­ in Russia cites LaRouche etarism underlies both the theory of the 'free market,' and Marxist political economy." , But, "a qualitatively different direction has been devel­ On May 7, the Moscow daily Nezavisimaya Gazeta car­ oped in economic science an'" the practice of economic ried Prof. Taras Muranivsky's article, "Reforms and management, which the Am�rican economist Lyndon Common Sense," which exposes the disastrous incompe­ LaRouche has named 'physical �conomy;' Unlike political tence of the economic reforms adopted so far in Ukraine economy, it is one of the natu�al sciences. It studies eco­ and Russia. "Monetarism leads any economy to catastro­ nomic and social processes initheir harmonic unity with phe," he writes. "The alternativeis a shiftof the economic energetic and technological oJ!les . Physical economy re­ policy of the state to the principles of physical economy. " jects the absurd assertion that tbe state should not interfere Muranivsky, who was the scientific editor of the Rus­ in economic processes. The $oviet experience of com­ sian edition of Lyndon LaRouche's book So, You Wish to mand economic management, which was negative and Learn All About Economics? published last year, identi­ contradicted common sense, dpes not at all mean that the fiesphy sical economy with LaRouche. Nezavisimaya Ga­ economy needs no managemen,.lf a driver breaks the rules zeta reaches hundreds of thousands of readers . ofthe road and runs his car into Iiditch , it doesn't mean that The article chieflyanalyzes the reform program adopt­ the car should be sent out on tlile road without a driver. " ed in Ukraine in 1992, but Muranivsky points out that the Muranivsky discusses hi�torical examples of state results there are like what has happened in Russia. In economic regulation that were not like Soviet central plan­ both countries, "there is an unprecedented collapse of ning, such as the successful reconstruction programs in production, hyperinflation is raging, unbridled specula­ France, Germany, and Japan after World War II. The state tion flourishes, while there is a fantastical accumulation properly restrains "immoral free market activities" like of fortunes against the backdrop of, and at the cost of, the speculation and usury. Contr� to this successful experi­ abrupt, mass impoverishment of people." ence, "Ukraine's monetarist program openly states the The reason for the failure of the reforms, the author necessity of 'using the principles of the InternationalMon­ urges, should be sought in their theoretical basis-mone­ etary Fund.' Is there really inspfficient evidence, that the tarism. According to this dogma, "the economy should be IMF is nothing but a usurer and pillager of the Third World tossed into the slough of elemental market forces, and let countries?" it wallow there as best it can, while the population keeps To rectify the situation; concludes Muranivsky, tightening their belts until the 'invisible hand' straightens Ukraine should begin "not witb.mon ey, but with the econ­ everything out. The reigning principle here is a cruel battle omy," and use the principles Of physical economy to find for survival--completely in accord with the anti-humani­ scientific economic, monetaI)l, legal, and organizational tarian ideology of Adam Smith and his modem successor means to revive production.

6 Economics EI� May 21, 1993 plore one of the largest proven gas fieldsin the world, in the Ural Mountains. It is estimated that these fieldscould contain up to 20 trillion cubic meters of gas. The biggest agreement so far by the Kazakh government has been signed with Chevron, the third largest U.S. oil CentralAsia opens up company. The $20 billion accord gives Chevron the right to develop the 4,000-square kilometer Tenghiz fields, whose to oil multinationals reserves are estimated at 25 billion barrels. Although the agreement is based on a 50-50 partnership, Kazakhstan is to by Adam East receive 80% of the revenue. Kazakhstan has also managed to secure the seal of ap­ proval from the International Monetary Fund and the World Since the end of World War I, oil has been one of the most Bank , a precondition for many foreign investors. Former common sources of energy in the world, and it continues to U.S. Secretary of State James Baker gave President Nursul­ be the case today, thanks in large part to the international tan Nazarbayev the services of several American economists. oil cartel. The collapse of the Soviet Union has deprived With the United States itself in the midst of a depression, one the Central Asian republics of Moscow's centrally planned cannot help but wonder about what the future might hold energy policy. The defunct ruble, which is exploring ever for Kazakhstan if it comes to rely on the advice of these new depths on the currency market, has left most of the "American economists." member states of the Community of Independent States Not too far from Central Asia is the tiny republic ofnewly (CIS) in dire need of foreign exchange. So, in search for a independent Azerbaijan, which is also very rich in oil. The reliable source of energy and a valuable source of commodi­ State Oil Company of Azerbaijan (SOCAR) claims that the ty, some of the newly independent republics have pinned country's oil reserves are as large as those in the Middle East. their hopes on oil. According to SOCAR's estimates, there are about 5 billion International oil companies have been invited to take barrels of oil alone in just three Caspian Sea fields. part in joint ventures for development of Central Asia's Just recently the state oil company signed a multimillion­ gas and oil reserves, and in their efforts to attract the oil dollar pact with a U.S.-based firm, McDermott Inc. The U.S. companies, the countries have offered various incentives firm, in its preliminary accords with SOCAR, has agreed to and tax breaks to make their offers more appealing. The oil modernize a fleet of ships which will be used to drill for oil multis.are not wasting any time and have already entered the in the Caspian Sea. Other oil companies such as Unocol region, and several joint-venture accords have been signed. Corp., Amoco, Pennzoil, and British Petroleum are also in British Petroleum and Chevron top the list of close to a the process of reaching agreements with SOCAR. dozen oil companies which are seeking agreements with the Azerbaijan is also thinking about a pipeline which would region's oil-rich republics. transport Azeri oil to the Mediterranean. The pipeline would Thus, against the backdrop of growing political instabili­ either run through Georgia, Iran, or Armenia-that is, if ty in the region, the oil multinationals are quietly moving in a peace settlement is reached between the two Caucasian to take advantage of the region's currently most precious republics, which are at war with each other. commodity. China opens up Kazakhstan is a target The oil cartel's presence in the Central Asian region was Among the newly independent Central Asian republics, further bolstered when Beij ing annbunced in February that it Kazakhstan, with its enormous gas and oil deposits, is the would open up the Tarim Basin of western China for foreign country most sought after by the international oil companies. exploitation. Kazakhstan's oil reserves are believed to be as big as Ku­ China's cheap labor-based, high-flying economy, with wait's. Its crude reserves are estimated at about 100 billion its disproportionate and uneven rate of growth that has barrels, and the country's gas reserves are said to be around spelled prosperity only for a handful of the country's enor­ 2.4 trillion cubic meters . mous population, could run aground for lack of oil, as oil British Petroleum, AGIP, Elf, and Chevron are the major production is dwindling. western companies involved in the country. France's Elf Currently, China's oil production is running at 2.8 mil­ Aquitaine has completed a production-sharing agreement lion barrels per day, and it is exporting 400,000 bpd, which with the government on about 20,000 square kilometers in is a major drop compared to the peak export volume of central Kazakhstan. 600,000 bpd in 1985. Most existing wells that were drilled Italy's AGIP and British Gas have secured an agreement in the 1950s and 1960s are now running dry, and keeping with the Kazakh government which will allow them to ex- them operational is very costly.

EIR May 21, 1993 Economics 7 According to international oil industry reports, China may become a net importer of oil by 1995 , and this will no doubt have a significant impact on China's foreign policy in Rates the coming years . The Chinese economy, which not too long Currency ago was self-sufficient in the production of its main source The dollar in deutschemarks of energy , will probably be forced to import about one-third New York late afternoonfixing of its total present production . This new foreign dependence will greatly affectChina 's foreign policy, especially toward 1.70 the oil-producing countries of the Middle East, and Washing­ 1.60 r--.... .- .-.. - ton is reportedly concerned about a possible arms-for-oil -- trade arrangement between China and the oil-producing 1.50 states of the Middle East. 1.40 'The next Saudi Arabia' Forced to compete with the former Soviet republics, the 1.30 Chinese government is offering huge incentives to western 3/24 3/31 4fT 4114 4121 4/28 SIS Sl12 oil companies to develop its vast onshore reserves. The oil­ The dollar in yen rich Tarim Basin in the far western region of Xinjiang is New York late afternoonfixing found by many foreign companies to be the most attractive area for exploration. Tarim is believed to be the world's 140 largest unexplored basin. "We hope it will be the next Saudi Arabia," Xinjiang's vice governor Wang Leguquan told a 130 foreign news service recently. According to China National Petroleum Corp. estimates, the total potential reserves in the 120 158,565 square miles to be opened are 8.2 billion tons of r--.. oil and 2.5 trillion cubic meters of gas. Foreign oil compa­ 110 ...... nies are allowed to assume the entire risk of drilling. If 100 successful, they will either develop the oil themselves or in 3/24 3/31 4fT 4114 4121 4/28 SIS Sl12 joint ventures with the Chinese firms. Either way, a portion of the profit will go to the state . The British pound in dollars Altogether, some 62 oil companies from 17 countries New York late afternoonfixing have rushed to bid for rights to drill in the 28,080-mile rim of the Tarim Basin. British Petroleum, which seems to be 1.70 ahead of the pack, is already in Xinjiang, exchanging data 1.60 with China National Petroleum Corp. on the Tarim Basin.

The biggest problem, however, is the lack of efficient - fII' 1.50 .-/'"V- !\ ... means of transporting the oil out of the Tarim. "Infrastruc­ -- ture" is not a very familiar term in the region . Taklamakan, 1.40 the huge desert which is home of the Tarim Basin oil fields, translated from the local Turkic language means: "You go 1.30 in, but you don't come out." Sand dunes as high as 50 meters 3/24 3/31 4fT 4114 4121 4J28 515 Sl12 are likely to block progress in the road which China is The dollar in Swiss francs building to its biggest prospective oil field in the center of New York late afternoonfixing the desert.

The province of Xinjiang, with its vast oil reserves, 1.60 however, is most likely to miss the "prosperity wagon," which so far has only passed through coastal China. Xin­ 1.50 � -- - jiang, which is also known as Chinese Turkestan, is mostly � ""'- populated by Uighur Muslims, who are actually ethnic 1.40 � If- Turks. The work forces in Xinjiang's oil fields are mostly Han Chinese, all coming from other oil fields in China. 1.30 While Xinjiang's oil may bring China billions of dollars, its 1.20 inhabitants will most likely continue to live in subhuman 3/24 3/31 4fT 4114 4121 4/28 SIS 5112 conditions.

8 Economics EIR May 21, 1993 Report from Bonn by Rainer Apel

Debt moratorium is becoming popular The government's promise to shoul­ A municipal debt repayment strike in eastern Germany is der 30% of th� east German housing debt of DM 43 billion, only holds if op ening a debate on the unjust debt burden generally. the housing associations manage to sell at least 15% of their property on the market from 1996 on, to resume their debt service payments . On May 2, the DST, the national and municipal) is now above DM 1.6 Given the speculative conditions association of municipalities, de­ trillion, have been fully corroborated that are dominating the "market," the clared that its member institutions in by a new report of the Bavarian state bank warned, the associations would the five eastern states will stop pay­ central bank. It estimates that the pub­ be under immense pressure to "privat­ ments on a crucial share of their "old lic sector debt reached DM 1.67 tril­ ize" property and buildings at any debt." The move may turn out to be lion this spring. About DM 350 bil­ price, to keep pace with their debt pay­ the beginning of a political revolution lion of this sum is on the books of the ment schedule. The logical conse­ in Germany. public sector in the eastern states and quence of this governmentpoli cy, the The action concerns DM 6.3 bil­ municipalities. bank said, would be certain bank­ lion ($3.9 billion) of pre- 199O invest­ There is no way that even part of ruptcy. ments of the East German government this debt, which has been fu eled by the The ferment around the debt issue that were, afterreuni fication, mysteri­ high interest rates (in the West since also provoked Misereor, the interna­ ously transformed into "loans" alleg­ 1979, in the East since 1990), can be tional relief organization of the Ger­ edly granted by the state to the munici­ paid, and more and more economic man Catholic Church, to launch a palities for social, health, and daycare and political institutions are realizing campaign for a moratorium on the projects. that the country is caught in a "debt staggering debtof the developing sec­ The municipalities see their "debt trap ." Proposals for a moratorium and tor nations. In an ad in the daily strike" as a means of forcing a debate long-term debt rescheduling are gain­ Frankfurter Allgemeine Zeitung on on the entire pre- 199O debt in the Con­ ing ground, as this author witnessed May 11, a joint initiative of German stitutional Court, and are aiming for a in talks with governmentand industry Catholics and non-governmental or­ ruling that declares at least substantial representatives in the eastern state of ganizations with the name of "Devel­ parts of the debt a bookkeeping hoax Thuringia during early May. opment through Debt Cancellation," and, therefore, illegitimate. The debate has explosive political recalled that the 1953 London Debt The moratorium comes at a time potential, because even beyond indus­ Conference canceled more than 50% when senior spokesmen of manage­ trial circles and municipal policymak­ of the German debt, thereby giving ment, labor, and government in the ers, outrage at Bonn's stubbornmone­ the postwar German economy a good five eastern states have a consensus tarism and lack of economic expertise start. (against Bonn) that a moratorium on is growing. The decision of FinarJce The same method should be re­ the old debt is the only way out. The Minister Theodor Waigel to leave the peated 40 years later, the ad read. Ger­ strike is also officiallyendorsed by the cabinet and take over the post of Ba­ many, a creditor today, should be gen­ entirety of the similarly indebted varian state governor is symptomatic erous to its own debtors. At least 50% western German municipalities. In­ of this. of the debt in developing nations formed sources say the DST sees the Desertions from the debt-collect­ should be canceled, the ad demanded, move as a trigger for a national debate ing paradigm can also be seen in the proclaiming the principle that "devel­ on the entirety of the roughly DM 200 bankers' community. On May 7, for opment needs debt cancellation: As billion municipal debt. example, the German Construction long as 35,000 children in the debtor The debt strike is the first of its and Real Estate Bank took the unprec­ countries keep dying from malnutri­ kind in postwar Germany, and it edented step of siding with its indebt­ tion and avoidable diseases every sin­ comes when various institutions are ed clients. The bank pointed out that gle day, countries in the South should publishing new figures on the debt on concessions which the government spend their money for food and health an almost daily basis. Recent hints, had made in recent talks with the in­ care for their populations-rather on which Bonn refused comment, that debted municipal housing associa­ than paying their interest to German the total public debt (federal , state, tions in eastern Germany werepho ny. creditors!"

EIR May 21, 1993 Economics 9 Dateline Mexico by Hugo LOpez Ochoa

Church: No limits to growth! of the Third World as "one of injus­ For the first time, the Catholic Church makes use of Lyndon tice, not of Qverpopulation. " In partic­ ular, the church charged that the U.N. LaRouche's central concept of physical economy. sought to legitimize abortion through "imperialist" methods equivalent to "chemical warfare ." The conference, for its part, was T he Latin American and Caribbean as evident the supposed negative cor­ organized by the U. N . Population Regional Conference on Population relation between population growth or Fund and the Economic Commission and Development held in Mexico City demographic density and economic on Latin America (ECLA), and vari­ in early May, served as a forum for development." On the contrary, "the ous regional bodies, for the purpose unprecedented accusations by the resources of the earth do not constitute of preparing a regional "consensus" Mexican Catholic Church against the a fixed and limited quantity against document on the matter of population, international genocide lobby and, by which a growing population must en­ to present to the 1994 Cairo meeting. association, against the malthusian ter into competition. Resources are At the conclusion of the confer­ policies of President Carlos Salinas de also the product of creativity and of ence, delegates from five Ibero-Amer­ Gortari . the capacity of human labor." ican countries charged that it had been The fallacies of malthusian ideol­ "Thus, through adequate educa­ "totally manipulated and orchestrated ogy were also solidly refuted in a doc­ tion policy, with appropriate technical by the U.N� Population Fund for the ument presented to the press by Co­ and economic assistance, these re­ purpose of imposing demographic cri­ lombian Cardinal Alfonso L6pez sources should grow normally. It is an teria" in order to bring to the world Trujillo, president of the Vatican's indisputable fact that resources today population conference "a consensus Pontifical Council on the Family, and are more abundant and generally on legitimizing abortion as a method by the Vatican's permanent represen­ cheaper than in the past," says the doc­ of populati

10 Economics EIR May 21, 1993 Agriculture by Marcia Meny

Move for 'sustainable' farming under way Hollywood movies extol Amish 17th­ F ollowup meetings to the Rio Earth Summit fo cus on the IMF­ century techniques, or the pre-agricul­ tural hunting aqd gathering societies in World Bank agenda fo r destroying agriculture. the Amazon. There is a hbge mobilization in the United States to stuff this down the In June 1994 , a worldwide confer­ and sanitation. Their objective is to ex­ farmer's craw. On April 29-30, a ence is envisaged on the theme of "sus­ act deeper debt service payments. meeting was donvened in Washing­ tainable agriculture. " The event, origi­ To rationalize their demands, they ton, of represellltatives from the Inter­ nally scheduled for this June in have mobilized academics, Holly­ national Fedetation . of Agriculture Minneapolis, is designed as a follow­ wood, and the mass media to put for­ Producers , to which the Denver-based up to the June 1992 EarthSu mmit held ward the bogus idea that the only "sus­ National Farmers Union (NFU) and its in Rio de Janeiro, Brazil. Last Janu­ tainable" economic activity is that counterparts in 25 countries belong. ary , the conference was rescheduled, which requires little advanced technol­ The focus, as stated by Bo Dockered, in order to provide time for a bigger ogy. The result of this policy is seen in chairman of th¢ IFAP's Environmen­ mobilization, according to Linda Els­ the decline in food output per capita in tal Committee· and president of the wick of the Washington, D.C.-based Africa and South America, and in the Federation of Swedish Farmers, was World Sustainable Agriculture Asso­ resurgence of once all-but-conquered to formulate proposals that promote ciation. diseases around the globe, and in the sustainable agriculture. Participating The intended conference has been scourge of AIDS. shoulder-to-shdulder with the erst­ billed as dealing with food security and Contrary to the propaganda about while farm representatives were offi­ caring for planet Earth. As described so-called sustainable low-energy­ cials from the World Bank, General by Noel Brown, the regional director state economic activity, only by in­ Agreement on Tariffs and Trade for the U.N. Environment Program creasing energy availability per hect­ (GATT), and �e academic anti-tech­ based in New York City, agriculture are and per household can one facili­ nology types from World Watch Insti­ "is the best barometer of what we are tate ever more advanced forms of tute , the Center for Rural Affairs in doing to the land." production, and thus make human so­ Nebraska, Cornell University, and However, the true purpose of such cieties truly sustainable, while en­ other groups. meetings is to plan out propaganda hancing the environment at the same NFU President Leland Swenson campaigns to confuse and demoralize time. urged farm groups to work with the the public into acquiescing to fero­ The traditional technology-proud World Bank. He noted approvingly cious economic austerity. The very U.S. farmer, given a decent price for how "environJ11ental concerns have term "sustainable," as it has come into his production, access to extended ed­ risen to the top of many international I use to describe low-cost, low-input, ucation, and adequate infrastructure, organizations' .gendas." minimum-infrastructure farming, is can improve yields per hectare, and The June 1994 world meeting on the cynical concoction of private inter­ build up the productivity of the natural sustainable agri,:ulturehad been set for ests which are demanding austerity of resource base at the same time. Thus, Minneapolis because it is the seat of populations worldwide. successive advances in technology, influence of th� commodities cartels Over the lastthree decades, private energy, and changes in the resource associated with,IMF-World Bank cir­ financial and political interests associ­ base have been the true foundation for cles. Minnesota is home to Cargill, ated with the International Monetary agricultural "sustainability." and home territory for Dwayne An­ Fund (IMF) , the World Bank, the com­ But in recent decades, in which dreas, former Cargill vice president modities cartel companies, and related farmers have been underpaid and lack­ and now head of the Archer Daniels entities, have demanded more and ing the means to make improvements , Midland cartel company, which has more looting rights in the form of the entire society has suffered, and en­ been in cahoots with certain NFU of­ cheap labor and cheap goods-"free vironmental degradation has spread. ficials to loot tile U.S. farmer for de­ trade"-and they have opposed eco­ Yet the IMF-World Bank propa­ cades. The Alliance for Sustainable nomic development of basic infra­ gandists say: You must make do with Agriculture, a c�el front group based structure, such as power production, even less energy and technology, in in Minneapolis, has volunteered to water management, transportation, the name of "sustainability" on Earth. host the worldwide conference.

EIR May 21, 1993 Economics 11 BusinessBrief s

Labor railway systems are built. Tragically, in the which wouldbe 6% of the population. In Chi­ United States, it is also the impoverishedpart na, the official number is about 1,000 HIV­ German metalworkers of the economy, starved for investment, back­ infected pepple, "but that is dangerous non­ begin strike in east ward and in disrepair." sense," experts say. Internalstatistics show at Kurtzmancontrasts this to "the other econ­ least 10,000infected people. Others think the omy, the financialeconomy, [which 1 is some­ real number is 100,000. German metalworkers have begun a strike at wherebetween 20 and 50 times larger than the In Malaysia, the official numberof infect­ six steel mills and 44 other plants in eastern real economy. It is not the economy of trade ed is 5,100,while experts think the real num­ Germany, their prime demand beingfor entre­ but of speculation. Its commerce is in financial ber is ten times higher. In the Philippines, preneurs to reinstitutea wage increaseof 26% instruments." The financial economy, Kurtz­ some 35,000 peopleare infected. One AIDS promised to them by April 1 this year, in an man writes, is volatile, represents potential expertsaid that AIDS in Cambodiacould pos­ agreement linked to the 1 990 treatyon German trouble, and is booming. sibly claim more victims than the Khmer reunification. Kurtzman recommends a series of steps Rouge dictatorship, which killed about 1 mil­ Metal industry managers in eastern Ger­ to deal with this crisis, including a "fixed-rate lion people, many had canceled the agreement several dollar" peggedto a basket of l 20r so commod­ "AIDS 'is threatening to overwhelm all weeks ago, on grounds that the increase,which ities, stabilizing interest rates, dampening countries in Asia, and the economic pressure would bring industrial incomes in the metal speculation, and increasing wages. "A rising will become incredible," scientists warn. and steel sector up to 70% of average western standard of living-something we have not Thailand e�timates that its economy will lose rates, was no longer tolerable under conditions seen in nearly two decades-will go a long $9 billion by the year 2000 (one-seventh of its of an economic recession. way toward dispelling some of the socialten­ GNP). Driven by austerity-minded arguments sions that now infect our country." that have made the wage issue allegedly the exclusive "crucial problem of industry's fu­ are ture," managers avoiding thereal issues­ Economf Theory the old and new debt, interest rates, and princi­ AIDS ples of banking and creditpolicies. They pro­ Alexander Hamilton cited voked the strike to defeat eastern workers as a New strain identified prelude for income cuts on a national scale. in national debate as virus spreads in Asia First U.S.: Treasury Secretary Alexander Researchersin the Netherlands have identified Hamilton was cited as a modelfor dealing with PoliticalEconom y a more virulent strain of HIV, the virus that the budgef deficit in a commentary entitled causes AIDS, which they believe accelerates "Deficit ussons: Hamilton the Hero," by u.s. must cure speculative the development of the disease. The presence Thomas McGraw, professor at the Harvard of the synctium-inducing virus makes a patient Graduate School of Business, in the May 2 economy, says Kurtzman six or seven times morelikely to develop AIDS New York Times. Written in part to justify an within two and a half years, according to a increase in taxes, McGraw's article misrepre­ In a somewhat flawedbut devastatingly accu­ study published in the Annals of Internal Med­ sents the fact that Hamilton createda national rate presentation, the executive editor of the icine. bank to geaerate credit for producing wealth, HarvardBusinessReview, JoelKurtzman, in­ The reportcomes as expertsfear that more not to increasethe money supply merelyto pay dicts the speculative economy of the United people will soon bedying of AIDS in Asia than the debt. He nonetheless recognizes the dra­ States. His article,"The Death of Money ," ap­ in any other region in the world, the German matic resulls of Hamilton's policy. peared in the May 1993 issue of the Continen­ weekly Der Sp iegel reported in early May. "A battle over deficit reduction hardly tal Airlines magazine Profiles, and is adapted Indian AIDS expertI.S. Gilada estimates seems the stuffof a profilein courage , but there from his book of the same name which was that India will have 20-50 million HlV -infect­ it is: The . Case of Alexander Hamilton," releasedin April. ed people in the near future. Some 15% of all McGraw wrote. "When the new American In the last 20 years, America has been HlV-infected people in Indiahave been infect­ governmentwas createdby the Constitution, splintered into two economies, Kurtzman ed by blood transfusions. Out of 1,000 blood the bills fo�the Revolutionary War still hadnot writes. ''The smaller of the two economies I banks, only 600 are state-owned where the beenpaid. ;In 1790, the national debt stood at call the 'real economy . ' This is where products blood is screened, while private blood banks $75 .4 milUon, a colossal sum more than 15 are made, trade is conducted, research is car­ exert no control. Their donors are poor, sick, times the young government's annual reve­ ried out, and services are rendered. The real and oftendrug-addicted, who get something to nues. (Today's debt, though absolutely im­ economy is where the factory workers toil, eat and a little money for giving blood. mense, is <)nly four times yearlyincome .)" doctors tend the sick and teachers teach, and In Thailand, the numberof HIV -infected Hamillbn"called paying thedebt a 'sacred where roads, bridges, harbors, airports and by the year 2000 is projected at 2-4 million, obligation,' the price of. . . independenceand

12 Economics EIR May 21, 1993 • BOVINE SOMATOTROPIN (BST), a natural component of cow's milk which is fed to cattle to boost milk production 10-15%, is safe, liberty. . . . This unflinching approach has to come. But in another part of the globe, a based on research by regulatory similar cause is also being fought for in the eamed Hamilton a niche in the Republican agencies of over 30 nations, the name of 108 developing countries of the pantheon; until the 1980s, the Republicans Council for Agricultural Science said probably held only Lincoln and Washington in South ....At stake are the lives of not just April 15. greater esteem." McGraw states that "Hamil­ 150 million peoplebut those of nearly half of the earth'spopulation of fiveand a halfbillion. ton's fiscalingenuity matched his fiscalinteg­ • BRITISH DOCTORS warnedat At stake is not one democracy but more than rity . He designed a brilliant system for placing the House of Lords inquiry into medi· 100." 'public credit' on a sound basis .. ..By pro­ cal ethics on May 5 against any relax­ This situation "is exacerbated by the fact moting a national bank and capitalizing it with ation in the law which would give that the total externaldebt of developing coun­ new Treasury bills, he multiplied the meager patients the right to die. The British triesreached $1.35 trillionin 1991 ," the edito­ money supply. Hamilton's "personal victory Medical Association said that it could rial read . It noted that Indonesian President Su­ became America's as well ." eventually lead to pressure to kill the harto, as the head of the Non-Aligned chronically disabled. Movement, was not permitted to make this case at the Groupof Seven summit of industri­ • FORTY AIRLINE officials alized nations. This "gives rise to questions Ukraine from fiveairlines in Taiwan will visit which clearly require serious answers .... Shanghai in May to discuss the possi­ Does the reluctance of G-7 leaders to listen Kuchma seeks special bility of opening direct air links be­ to the plight of developing countriesoriginate tween Taiwan and China, the leader economic powers fromthe fact that unlike in Russia and the other of the delegation said on May 7. Tai­ republicsof the former Soviet Union no nucle­ wanese have made an estimated 4 ar warheads are involved? ...Why is it so Ukrainian PrimeMinister Leonid Kuchma has million trips to China since 1987, difficultfor the South to get a chance to com­ demanded "special powers" to lift the nation most of them through Hong Kong. out of its desperateeconomic crisis. Kuchma municate with the North?" made the demand to the Ukrainian Parliament • CHINA may trade nuclear pow­ on April 30, saying, "Without the introduction er, sophisticated technology, and of martial law in the economy, Ukraine will arms to the Mideast for crude oil, an cease to exist as a state." analyst said recently at an oil confer­ On May 3, the parliamentbegan deliberat­ Energy ence in Singapore . Last year, Mid­ ing on his demand. The desperate economic east oil producers sold only about crisis and Intemational Monetary Fund-dic­ China authorities warn 70,000 barrels of oil a day to China, tated "shocktherapy" and conditionalities pol­ of power shortfall but sales will leap to between icies are fuelinga politicalcr isis. Communists 600,000 and 1.5 million barrelsa day see a political opportunityin the midst of popu­ by the end of the decade. lar anger over the collapse of living standards. Five Chinese ministries and commissions wamed of a major shortfall in electric power • KENYA has 1.68 million people production, and issued a directive to local au­ who are believed to be infected with thorities demanding that they ensure that HIV, the Ministry of Health in Nairo­ Foreign Debt enough generators are installed this year, the bi reported i� early May. This is 7% China Daily reported on May 1. of the total population. A time-bomb ticking in Power production is now at least 80% be­ low that needed. It is dependenton totally inef­ • THE GERMANchemical indus­ Third World, says paper ficient thermal and hydroelectric generation trywill fire 30,000 workers this year, for an economy of 1.2 billion people,and coal­ a spokesmanfor the industry associa­ A time-bomb is ticking not just in the former burninghas already massively polluted China. tion said on May 7. Soviet republics, but in the debt-ridden Third Power generation grew only 10.7% in 1992, World, thelakartaPostofIndonesiaeditorial­ while industrial production overall grew 20% . • INSURANCE FIRMS in the izedonMay4. "The nations of the West should The Chinese power industry plans to in­ U . S. face record damages in the first be reminded that a mightier bomb is ticking stall 57 new generators this year, but of those quarter of 1993. Nine catastrophes away in the form of sufferingdue to povertyin 44are thermal and the resthydroele ctric. Chi­ led to an estimated $2.8 billion in many developing countries." na has installed generators with a power-pro­ property damage insurance claims, The editorial rej oices thatBoris Y eltsin re­ duction capacity of 165 million kilowatts per beating the previous record of $810 turnedhome with$1 .6 billion fromthe United hour, but whether theyare operating or not is million set inthe firstquarter of 1992, States. "We believein democracyand pray for unclear. China will requirea capacity of 280 UPI reported!on May 4. the welfare of the Russian people in the days million kilowatts an hour by the year 2000.

EIR May 21, 1993 Economics 13 �TIillScience & Technology

U.S. firm,Ru ssians to build modularheli um reactor The benfditsqf the gasturbine modular helium reactor developed by General Atomicsare enormous, and would draw on Russia:Sgreat scientific resources, says GA Vice Chairman LindenBlue.

Linden Blue is vice chairman of General Atomics, a San lends itselfto mass production, and there is such an enormous Diego-based company that signed an agreement with Russia market in Russia and the former Soviet states because their on April 1 to jointly develop a modular high-temperature reactors are terrible by U.S. standards. gas-cooled nuclear reactor, which will use an advanced gas Blue: That's right, and the Russians do have some good turbine to directly convert the reactor heat to electricity. Blue plants and equipment that could be readily adapted to produc­ was interviewed in early April by Marjorie Mazel Hecht, ing these modular reactors. managing editor of 2 1 st Century Science & Technology mag­ Saying that it would be in mass production is a little bit azine. misleading, because when people think of mass production they think of the automobile. Production of modular reactors Q: The recent announcement by General Atomics of the would be at a very low rate . What we're talking about is agreement for joint 50-50 partnership with the Russians to serial production; that is, there would be a constant flow, and develop the gas turbine-modular helium reactor (GT-MHR) you would take advantage of all the economics and controls is good news for nuclear and good news for world develop­ of factory production. Not only controls that keep costs ment. Can you tell me about the scope of the agreement that down, but quality control is much better in factories. So I you signed? think a better term is factory production. Blue: First of all, it is an agreement and an alliance that makes all kinds of sense. The Russians have splendid physi­ Q: When would you expect to have the design completed cists; we have worked with them for many years. Even during and your firstreactor on line, if all goes well? the years of the Cold War, we worked on fusion energy Blue: We would hope to have the first oneon line in about together and that's resulted in a broad international fusion 10 years . Frankly, the program will probably be constrained effort. There's no reason why we can't duplicate that kind of by finances, and 10 years is a ,very reasonable time period. effort with this fission reactor, the modular helium reactor. It could be done sooner, if there were full funding very early The gas turbine variation on that takes the ultimate advantage on. of that potential. Additionally, the Russians have enormous infrastructure Q: If you had the optimal schedule-let's say financing is that is currently unemployed or underemployed and, I think, not a problem and there is a crash program to do this-how it's in everybody's interest that these facilities be used and fast could it be done and, realistically, what do you expect? be used for constructive purposes rather than for making Blue: I would say eight years would be a minimum. weapons for Russia or anybody else. Q: Is this eight years to develop the design and get your first Q: Your agreement is to produce a design and a demonstra­ reactor on line? tion plant, but you also talk about mass production, which is Blue: Yes. The reason that I believe it could be done in eight tremendously exciting. This is a modular reactor, which years is that the design is already very far advanced for the

14 Science & Technology EIR May 21, 1993 The direct-cycle gas-turbine modular helium reactor

GT-MHR will pioneer the development of a next-generation nuclear reactor that is modular, simple in design, and inherently safe (no meltdown is possible). For the first time in a nuclear reactor, it will eliminate the steam turbine, converting its heat, via the helium coolant and an advanced gas turbine, directly to o electricity. The great effi ciency of the GT-MHR comes fr om several recent technological breakthroughs: new gas turbines developed fo r jet engines like the Boei':lg 74 7; compact plate-jin heat exchangers that recover the turbihe exhaust heat at 95% effi ciency; magnetic bearings that are fr iction fr ee, eliminating the needfor lubricants in the turbine system; and high-strength, high­ temperature steel vessels. Reactor vessel This 300 MW GT-MHR power plant consists of two pressure vessels, both located underground in a concrete containment structure . One vessel houses the nuclear reactor system and the other, smaller vessel houses the power conversion system-a generator, gas turbine, and two compressors . The fu el particles are unique to this type of helium-cooled high-temperature reactor. Uranium or plutonium fu el isfabricated into tiny particles that are coated with layers of ceramic materials Power that constitute tiny individual " contairtmentvessels ." conversion vessel The helium enters the reactor core at91 5°F and is heated by the nuclear reaction to 1 ,562°F. It then converts the heat to electricity and the helium is cycled back to the reactor vessel.

Source: General Atomics.

reactor itself, and we would be able to take advantage of all problems in their nuclear and weapons program? the work that's gone on before. All of this work-the latest Blue: That's a possibility . First of all, let me clarify one work-is also on CAD/CAM [computer-assisted design! thing. The reactor can either burn low-enriched uranium or computer-assisted manufacturing] , which means it's engi­ plutonium. The thing that has been talked about most recently neered electronically. Thus, changes are much easier to make is the plutonium variation because of the problem we and and you have enormous filesthat are very easy to manipulate, the Russians have to deal with: plutonium coming out of which in itself reduces the time. So, by taking full advantage weapons. Essentially the difference-whether it's burning of everything that we've done in the past, in my opinion, uranium or plutonium-is in the fuel kernel . ...It 's just a eight years is quite realistic. question of what's in the center ofthe fuel kernel-plutonium And then it would be a matter of utilizing resources in or uranium. this country and in Russia, and producing some parts in The defense authorities in both countries have to be con­ Russia and some parts in the United States. cerned with the plutonium problem. And exactly where the funding would come from is uncertain, but $20 million a Q: The news release that General Atomics put out estimated year goes a long way toward solving the problem, and, rela­ $20 million a year as a budget coming from the United States. tively, is not a large amount of money. How would that work? What do you envision? Blue: We would expect that there would be a program for Q: It's a very small amount compared to development of the development of the reactor-it would probably be admin­ other large projects like this. I would like to get into some istered by the U.S. Department of Energy-and our joint specifics of the reactor design. But first, I am going to ask venture would be the contractor which would be asked to do you another global question. I see this as a tremendous pros­ the job. The Department of Energy would oversee the effort . pect for industrial growth in all of eastern Europe, and also as a boon for U. S. technological capability, because the parts Q: Because the reactor will burnweapons-grade plutonium, and components of reactor systems that will be needed can do you expect to have funding from the Department of De­ be fabricated both here and in Europe. fense-which, I believe, has already pledged to the Russians Blue: That's absolutely right, aM it's very-high-value­ $ 1.6 billion in terms of cleaning up and working with the added production. That is to say, afterWorld War II they tried

EIR May 21, 1993 Science & Technology 15 •

The biggestan d mostim poTtantsavingsqfthe GT-MHR isthe thermal�ciency, but the other is that we are directlydriving the turbineJromithe helium gas as it comes out qfthe reactor.

to convert companies that had been manufacturing airplanes no emissions and the radiation levels are actually lower than to---one case in particular, it was Grumman-making ca­ they are from burning coal. t ou do have the storage of a noes. Well, admittedly, canoes are made out of the same small amount of high-level waste. But this amount is about thing-aluminum-that airplanes are , but there 's a huge dif­ 100,000 times less in volume tltanthe waste from coal. So it ference in sophistication and value added, so that kind of really is a problem that can be readily handled, and the fact n conversion of a defense industry to commercial products just that you have no emissions i . to the atmosphere is a great didn't work . advantage. It's very difficultto convert defense products and defense production capabilities to civilian production, and , in fact, it Q: Especially in eastern Europe, where they bum the kind is very, very rarely done successfully. In this particular case, of coal that has tremendously volluted the entire area. I like the same kind of sophisticated equipment and facilities and your slogan "To Power the World into a New Century," infrastructure that has produced weapons could also be em­ because I think that it is very appropriate. To me, one of the ployed on a very high value-added basis to make these reac­ most exciting things about the GT-MHR is that it's a gas tors , because these reactors are, likewise, very sophisticated , turbine. I never have understood why we would want to go and it takes the same kind of high-quality plant and equipment with 21st-century new nuclear treactors but use the old steam that the weapons sometimes require. So, yes, it is a splendid technology. So, the coupling o!fthe gas turbine, I think, with opportunity for conversion of defense facilities to peaceful this new reactor design-the helium reactor-is exciting be­ commercial uses. cause this is a technology worthy of the new century. Blue: That's right. The detraqtors will say, "Well, if it's so Q: The degree of sophistication, it seems to me , in the ma­ good, why wasn't it done bef0te?" And the simple answer is chining required will benefitfrom the skilled labor force that that the technologies haven't ,*en ready before . We haven't exists both in Europe and here, and is currently going idle to had a modular reactor that was �ized right for the kinds of gas a large extent. turbines that are being made now. Gas turbines themselves Blue: Yes, the problem of keeping Russian physicists and hadn't evolved to the point o� efficiency that we're getting engineers-who are extremely good and talented-produc­ now . And the magnetic beariI).gs make everything easier in tively employed and keeping them from seeking jobs outside terms of the shafts. of Russia where we might not want to have them working is I very important. And I noticed the other day in this country Q: Are these the frictionless bearings? that there's rather high unemployment among physicists and Blue: Yes, the magnetic beatings virtually eliminate fric­ engineers. This would be a great way to put some of these tion, and they havegreat proIJ1!rties for dynamic dampening people to work-something that is of enormous value to of rotating shafts, so they're sqperior in every way. But with mankind. magnetic bearings 10 years ago. , you just couldn't do this type of project. Q: Yes, and what they're really missing in eastern Europe is cheap electricity. In other words, what you need for devel­ Q: There are a number of state-of-the-artdevelopments that opment is electricity, a good source of inexpensive electrici­ made the GT-MHR efficiency possible, as your literature ty , and once you have that, you can then develop any country . notes. I I think you know we've worked on programs for developing Blue: The recuperators are the final thing. Ten or fifteen eastern Europe, and the bottom line is that you need a trans­ years ago , when we looked at �is earlier, we could only get portation grid and you need electricity. recuperators that were 88% e�ficient and were five times as Blue: That's right and remember, electricity is the most en­ large as the recuperators we're talking about now. There's vironmentally benign source of energy there is. So the ques­ been enormous improvement! in recuperators. Mostly that tion is, how do you get the electricity. If you bum coal to get has come out of the fossil-energy arena, but these advances there , you create environmental problems. Nuclear is the are directly applicable to wh�t we're doing. So, yes, the cleanest source of energy, other than hydro power. There are technology has evolved to the lpoint that it is ready to power

16 Science & Technology EIR May 21, 1993 us into the next century, and the advantages are so great that Q: Can you say a little bit now about the inherently safe it is hard to imagine people would consider using steam any aspect of the reactor? In particular, I think what is attractive more . is that the containment of this reactor is actually the ceramic layers surrounding the tiny fuel pell¢t. Q: Can you talk a little about the evolution of the GT-MHR Blue: Yes, we believe the right plaoe to confinethe radionu­ design and about its 50% increased efficiency through the clides is at their source, and that's ekactly what the tiny fuel use of the gas turbine? Because that's very impressive. particles do. They are in actuality t�y containment vessels. Blue: First of all, the laws of thermodynamics are that the We have a lot of other things that could contain the radionu­ higher up you're able to go in the thermal scale, the more clides as well, but the essence of thle safety is the tiny-fuel­ efficientyou can become. We've always known that, every­ particle containment at the source. That leads us to a reactor body knows that, and that's always the objective. The prob­ that can't melt down. That's a big contrast to the kind offuels lem is, getting heat-exchange mediums and materials that that we've seen in reactors in the past, which required the will handle the higher temperatures. presence of coolants at all times. We're able to handle the higher temperatures with our The helium reactor can have an accident where you lose fuel because it's a tough ceramic and, as you know, ceramics all the coolant and you still don't have a meltdown. We're can go to very high temperatures. That is number one. Num­ the only reactor that can do that. ber two is that water is a splendid coolant, but it is corrosive This isn't to be critical of light-water-reactor safety. I and it limits you to about 700° C in terms of its being an think in this country we've done a fine job and have had a efficient fluid forheat transfer. fine safety record. It just points out that in the case of the Helium, by contrast, is totally non-corrosive and has no helium reactor, even if you have human error as we had at thermal limit. It's going to remain a gas whether it's at room Three Mile Island and Chemobyl, you can't have a melt­ temperature or 3,000° C, and that's an enormous advantage. down. Even if you were to have a major structural failure, So you can take the helium up to as high a temperature as the you can't have a meltdown. It goes right back to that micro­ other materials will tolerate, and as you do that you are scopic fuel particle that contains aU the radionuclides right getting greater efficiency. there and the low-power-density reactor that simply can't There's another area where the efficiency comes from: reach temperatures which would fail the fuel. When you have to pass a fluid-be it water or helium­ through a heat exchanger before it can do its work, you lose efficiency, and those efficiency losses can be rather signifi­ Do you want scientific evidence cant. The biggest and most important savings of the GT­ instead of scientifichoax es? MHR is the thermal efficiency, but the other is that we are directly driving the turbine from the helium gas as it comes Subscribe to 21st CENTuRY out of the reactor. That's also a great source of efficiency, SCIENCE & TECHNOLOGY since no heat exchanger is necessary . In the Spring 1993 issue: The danger is NOT going nuclear Q: It also gives you a very compact design, it seems to me , The inside story on Japan's cold fusion program with your two modules side by side. Are soap bubbles smarter than you? Blue: Very compact and very simple, and any engineer will Julia Child on safe fo od tell you that the simpler you can keep a design, the better it The Danish astronomer who discovered the is. finite speed of light Plus much more Q: Some of the other advantages mentioned are that the cooling towers can be smaller, which saves cost, and that One-year subscription (4 issues) $201 ___ they're air-cooled, which to me is a very big selling point, Two-year subscription (8 issues) $38_ because that means you can locate the reactor in places that Single copy (Spring 1993) $5 __ · are deserts or don't have the water availability. Send check or money order (U.S. currencyonly) to: Blue: That's right, and there are so many places where there may be a little bit of water, where it's very precious-it's a 21st CENTURY shame to use it to cool electricity-generation facilities. So the Dept. E, P.O. Box 16285, Washington,D.O. 20041

GT-MHR is ideal from that standpoint also. It is possible Nrune ______because of the higher temperatures. It tells you that through­ Address ______out the GT-MHR design, you're gaining economics that are I City______State __ Zip ______extremely attractive, and you're getting rid of the traditional Giftcards are available. problems and resistances to reactors of the past.

EIR May 21, 1993 Science & Technology 17 I Q: I noticed also that this reactor makes 33% less high-level improving life. There's been i�credible killing for that rea- waste than the ordinary light-water reactors do. Why is that? son. Right now, today, we sed so much evidence of that in Blue: Let me clarify that. The light-water reactors today the volatility in the Middle Eas� because of the concentration produce 50% more waste. It takes them 50% more neutrons of hydrocarbons in that area. i to produce heat and 50% more fuel to produce the neutrons, To continue world relianc� on those resources is almost and that results in 50% more waste. It is strictly a fu nction certainly a formula for contim*d violence, destruction, and of our high thermal efficiency, where you don't have to pass death. While there is no way !we can get away from using the coolant through a heat exchanger. those resources, we should cert�inly not increase our reliance on them, and the only way w� can decrease the reliance on Q: So, all of these advantages add up to a lower cost per them is to have other sources qf energy. The kind of reactor kilowatt hour of electricity produced? that we're talking about is the tiest source of alternate energy Blue: That's correct. I know of, unless and until soJar makes dramatic improve­ ments in economy which, I hoIieand trust, it will over a long Q: What is your estimate of electricity cost with the GT­ period of time. But, right nowl, today, this is the only thing MHR? that's really economical. Blue: We estimate that we will be very close to about $.03 ! per kilowatt-hour, and that's a big improvement. Q: I think that you 're absolute�y right. The strife and devolu­ tion that we're seeing is extrenjlely dangerous. If you look at Q: The current light-water cost is closer to $.05 per kilowatt­ the 21 st century and look at tIle way things are going now, hour, I believe. unless we are able to tum tha� around and do exactly what Blue: Yes, it's sort of all over the ballpark, depending on you say-provide the energy s.,that nations can develop and when the reactors were built, but the recent ones are certainly can improve the lives of their I people-it seems to me that at $.05 or more ....Natural gas combined-cycle gas tur­ we're looking at the Third Wotld War. bines are very low-I think in the neighborhood of 3Y2¢. But Blue: I think that's very likely, and if not a Third World that's with low gas prices, and one of the things I noticed the War, just more and more confl,ctslik e Iraq. i other day in the paper was that natural gas future prices have gone from $1 .50 in January to $2.25 now; that's a 50% Q: There are so many hot sMts now-in the Middle East, increase in three or four months. That just tells you how throughout Africa, Iraq, and �an. Certainly I think people subject to change anything is that involves natural gas. would prefer to build instead �f destroy, and to do that you We think natural gas is a fine fuel, but it should not be need a source of energy. An4 a source appropriate for the the only one that we rely on for production of electricity. Of 21st century would be nuclearfis sion or fusion. I disagree course, coal has its environmental disadvantages. Natural with you on solar, because I t*nk solar is inherently limited gas has environmental disadvantages also, but from the envi­ and will never be able to prov�de the quality of energy-the ronmental standpoint, it's better than coal. energy density-needed for in�ustrial economy. Blue: I don't disagree. I'm onfy saying that I would be hope­ Q: But both coal and natural gas have the limitation that ful on solar, but that it would!be crazy for us to rely on the they are natural resources that we are depleting. expectation that it will happe�. I just hope that it will come Blue: They are natural resources we're depleting that ought along and make what I think 'ill be a very modest contribu­ to be used for transportation and home heating. tion. But it's not going to provi e the huge amounts of energy that nuclear and/or use of fossl 1 fuels can provide. Q: And also for making plastics and other things that cannot be done without having the fossil fuel as a source. Q: What do you think the ne�t step is, looking ahead? You Blue: The other thing that people must remember about nat­ signed the agreement as of AJtjl I; what kind of a timetable ural gas is that it is a fossil fuel. It does have emissions­ do you think you can have? I they're lower, yes-but they're only about 40% lower than Blue: I think the Russian sciqntists need employment now; coal; you still have 60% of the emissions to deal with . this is a problem now. I wquld hope that this will be a program that will be expediteli and that maybe some funds

Q: Well, I'm sold on the modular helium reactor, no ques­ would start to flow in a few titI onths. The need is there, the tion about that. people are there, the resourcqs are there. The capability is Blue: There's another advantage that I would like to talk very much in place, and w� have the capability in this about, and that is the whole relationship of energy availability country of contributing enorropusly to the technical effort as to world improvements in standards of living, and that means well. So, I hope that we wo�ld be under way in a serious political stability. It also means less fightingand killing. way within a few months. Throughout history men have fought over the resources, I the wealth they perceived that they needed for a good or Q: And what are the indicatiops from the new administration

18 Science & Technology EIR May 21, 1993 that you had about the project? third of the deposit, and that's a terhble waste of the oil and Blue: I believe it is one of the projects that was discussed at has all kinds of environmental negl!-tives. So, any place that the summit, and I believe it was favorably discussed, and is has heavy oil should be very interested in this source of being considered now. stimulating that production . . . along with all the other rea­ sons. And there's a lot of heavy oil in the world-Venezuela, Q: That is good news. What do you think the prospects are Indonesia, Russia. for General Atomics to work out similar joint projects with There's always resistance to anything that's new. But other nations? there comes a time when the technology is so overwhelm­ Blue: I think they're very good, because there is a need for ing-in terms of its advantages-that it can't be resisted, and this modular type of power plant where power can be added I believe that's what we have now, because we have a reactor in, say, increments of 300 MWe rather than four times that that is not only dramatically more efficient, but dramatically amount, which the big water reactors require. That's needed less polluting, dramatically less expensive (in terms not only almost everywhere. It's also needed to have the economy, of of building, but its product), and dramatically safer. In a course, that the modular reactor gives you, and the freedom time when the world does need eriergy, this confluence of from the huge infrastructure that's required to assure the technologies gives us an enormous opportunity, and I think safety of a light-water reactor. that those people who are pessimistic about what science and Our reactors are so simple, so forgiving, they can be put technology can do for the good of the world, just haven't almost anywhere in the world and you wouldn't have to been exposed to this particular project. worry about it from a safety standpoint. Q: That's a good optimistic note to end on! Can you say a Q: I think that that's a big selling point, and I think there little about the history of General Atomics? would be other nations in Ibero-America and elsewhere in Blue: General Atomics was founded nearly 40 years ago for Asia that realize that they need nuclear in order to grow, and the peaceful uses of nuclear energy, and it has been dedicated that would be interested in this. to that purpose ever since. It is a world leader in production Blue: One of the areas in which it could be very desirable is of training, research of isotope reactors, in fusion energy and for the stimulation of heavy-oil production. Right now, in it is the world leader in the fission helium-cooled reactor order to get heavy-oil production you need to bum about a technology.

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EIR May 21, 1993 Science & Technology 19 TIillFeature

IMFfr ee-traders tum E. Europe into smuggler's pamdise

by Roger Moore

On Sept. 19, 1989, then CIA head William Webster gave a speech to the Los Angeles World Affairs Council on the reorientation of CIA strategic objectives. "Our political and military allies," he stressed, "are also our economic competi­ tors." He said that the CIA's espionage activity wo*ld be directed in large part toward countering this alleged threat. Webster was referring especially to Germa­ ny , and its potential to lead western Europe into ani economic relationship with the East based on development of infrastructure and the productive sectors of the economy. On Nov. 30, 1989, Deutsche Bank 4airman Alfred Herrhausen, architect of a nascent productive development policy for Poland and the rest of the changing East, was assassinated. The Anglo-Ameridan architects of the Webster Doctrine could not have been more pleased. , Following the collapse of communism, the United States and Great Britain used the credit embargo power of the InternationalMionetary Fund (IMF) to force disastrous "shock therapy" policies on eastern EurQpe and the countries of the former Soviet Union. Over the two and a half yean; since the formation of the German currency union in July 1990, the preexisting Comecon trade relations have been ripped apart, with consequent rises in upemployment and shrinking industrial production. The goal of this policy, the geopolitical dictate tb prevent a continental Eur­ asian economic development zone, also relies for iits implementation upon the black economy of organized crime, which has lived in symbiosis with Anglo­ American financial interests for decades. In the abs�nce of real economic assis­ tance, a coordinated palette of criminal capabilitie� and products, from money laundering to alcohol, cigarette, and drug smuggli$g, was fostered to create a black, "free market" economy to fillthe vacuum. Iinstead of productive credits and investments, hot money, along with a large co�ponent of money laundered from criminal elements, was sent in to secure real assets, in the form of privatized state-owned concernsand real estate. Under the principles offree trade "Manches-

20 Feature EIR May 21, 1993 East-West black market routes in Europe

ter capitalism," thousands of import- and export-related com­ deputy director of operations for the CIA, who cut his teeth panies were created in easternEurope and the Community of setting up a heroin trafficking operation that was used to Independent States (CIS), usually linking western partners finance covert activities in Southeast Asia during the Vietnam with elements of the communist nomenklatura, to flood the War, is intimately involved in "consulting" in eastern Eu­ East with western comsumer products. rope. At the 1990 convention in the United States of the The much discussed theme of organized crime in the Association of Former Intelligence Officers (AFIO), Shack­ East, the so-called "Russian" mafia, too often concentrates ley gave a speech emphasizing that U.S. financial involve­ on the ethnically diverse street-level thugs who handle the ment in central Europe was important, because Germany dirty retail work in criminal enterprises, and fails to see the cannot be allowed to dominate the region. Since the United infrastructure, protected cash flow, and planning which per­ States has consciously inhibited serious aid, as frequent pro­ mit the retail "business" to flourish. This would be the equiva­ tests from Moscow and eastern European countries show, lent of documenting the various ethnic groups involved in what exactly is the U. S. "financial involvement"? the Asian heroin traffic and omitting that this market is the conscious creation of the nineteenth-century British imperial 'Free trade' and political corruption geopolitical expansion known as the Opium Wars against One of the most important aspects of this policy is not so China. The British creators of this market to this day play a much the illegal cash flowper se, but the buyout and corrup­ · controlling function through the role of the Crown Colony of tion of political assets. Why would Russia and other CIS Hong Kong, which is the financial center for the Golden states consciously pursue a policy Ito floodthemselves with Triangle heroin trade. western-producedciga rettes and alcohol, as has been the case It is perhaps no accident that Theodore Shackley, former since 1990-91 ?The U.S. company Philip Morris, the world's

EIR May 21, 1993 Feature 21 biggest cigarette producer and number seven on the 1991 member Yegor Ligachov, irreflaceable, century-old vine­ Fortune 500 list, and the Bronfman family's Seagram's, are yards were destroyed. Vodka became a major black market not unknown entities in Moscow. The peculiarities of this item and its price rose rapidly. I At the same time, a cottage trade are such that the Moscow government in late 1992 industry for home brews devel�ped, but was always depen­ specifically requested of the German government that their dent on the black market "tra�ing mafia's" ability to draw export trade credit guarantees, extended for Russia to pur­ more sugar out of Cuba (in exchange for weapons) and divert chase industrial machinery produced in easternGer many, be it from normal channels for distilling. shifted to cover the import of western cigarettes! It would be very interesti�g to investigate Seagram's According to Russian sources, it is now a widespread sales into the East from 1989: to the present. At the time practice for cigarettes, imported at wholesale prices, to be Edgar Bronfman received a medal from East German com­ paid out, calculated at going retail prices, to workers in the munist party boss Erich Honecker in 1988, deals were also state enterprises. In effect, the monetarization of cigarettes signed under the supervision of Alexander Schalck-Golod­ is being used as a short-term hedge against budget deficitsand kowski's "Commercial Coorcijnation" (KoKo) for an in­ ruble inflation. Managers of state enterprises are investing in creased Seagram's role in East Germany. Presumably, cigarette sales and turning a profit on the wholesale-retail Bronfman secured similar arr�gements in Moscow at the price spread. From the limited point of view of management, time he was negotiating with Mpscow on channeling emigra­ they seem to be creating more accounting freedom, although tion of Russian Jews away from the West toward Israel. Russian sources emphasize that the "profit"is not going into There was nothing aCcidenlal about the flood of alcohol purchases of new machinery for desperately needed modern­ and cigarettes into the East be,inning in 1990, and there is ization. In fact, the national economy is increasingly im­ nothing accidental about the in¢reasingly professional crime porting relatively useless consumer products, which at best syndicates, operating one lev�l below the eastern trading contribute to social peace, as the argument goes, but do partners of Philip Morris and ISeagram' s et aI., which are nothing to increase national productivity. Although Philip smuggling a part of these pro ucts back into western and Morris and other cigarette companies have plans to build easternEurope . r' factories in Russia and other CIS states, in the meantime, a The Bronfman family of Canada was notorious as one larger and larger stratum of the management apparatus sees of the main suppliers of whi*ey and other alcohol to the its immediate interests and gain in the worst forms of Man­ Prohibition-era United States. I1attained its position over the chester capitalism. U. S. smuggling syndicates by virtue of being given a major According to Philip Morris's 1990 annual report, "In chunk of the business by the Drtillery Company of London, 1990, we agreed to supply more than 20 billion cigarettes to controllers of 50% of the worl� market in Scotch whiskey. the Russian RepUblic. We also doubled our business in both The Scandinavian countries, and Germany, not previous- Poland and Yugoslavia." Annual consumption of cigarettes ly known for large domestic black markets in cigarettes and in Russia was estimated in 1992 to be 190 billion cigarettes. alcohol, have experienced significant increases in smuggling As then chairman of the board and chief executive officer since 1990. Swedish and Norwegian customs report that Hamish Maxwell stated, "And in September 1990, we 1990 was the turningpoint for tbe expansion of illegal domes­ reached a major agreement to export cigarettes to the Russian tic alcohol sales. Norway hasI the biggest problem, where Republic, the largest republic in the world's third-largest more than 20% of domestic consumption is from the black cigarette market-the Soviet Union." market. In January 1993, Swe4ish customs worked on a case From 1975 to 1990, Philip Morris had an officialadvisory where 100 ship containers, ellch holding 20,000 liters of relationship with the Soviet tobacco industry. Although the alcohol, were contracted in the West, shipped to Talinn, breakup of the Soviet Union accounted for part of the collapse Estonia, and then on to St. Petetsburg. A part of this shipment of the Soviet tobacco industry, one cannot rule out that be­ was intercepted by Swedish c,ustoms at the point of being hind-the-scenes arrangements went into effectunder the cov­ diverted into the Swedish blackrmarket. The American chem­ er of IMF-promoted western reforms, whereby protected, ical giant Union Carbide has qeen shipping large quantities state-owned production was scuttled for the benefit of the of 96% pure spirits from its fac�lities in Holland into the East. Philip Morris deal. A Russian source has stated thlltmuch of the westernalcohol brought into the East is sold uMer consumer product labels Alcohol: the Seagram's connection which have never been heard Qfbefore . The flood of alcohol into the East also raises interesting Poland, already in 1989, b4came the model for how radi­ questions. According to Arkady Vaksberg, Russian author of cal free trade and shock therapy would tum an economy over the 1991 book The Soviet Mafia, elements of the Communist to criminals. According to Kl!akow law professor Michael Party nomenklatura, which is deeply involved in black mar­ Plachta, between January 19$9 and mid-1990, some 146 keteering of scarce goods, were quite happy with Gorba­ new, limited liability compani�s imported the equivalent of chov's much-publicized anti-alcohol campaign, which in­ 30 million liters of pure spirits. This volume equaled one­ volved reductions in state production. Under Politburo sixth of Poland's official stat¢ production for 1989. Some

22 Feature EIR May 21, 1993 Fo nner CIAchief hails Russian black market

Former CIA director William Colby wrote in a syndicated column last month that Italy's experience with the black market after World War II provides the best model for Russia to follow in getting out of its economic crisis. The column was published in Die Presse newspaper of Yienna on April 15, and the quotes given here are translated from that source. "In 1945," Colby wrote, "Italy found itself in a situa­ tion as catastrophic as that facing Russia today. The econ­ omy was ruined, the currency was worthless, the chief means of exchange was a pack of 'Lucky Strike' ciga­ rettes. But as the years went by, the black market was recognized; in the footsteps of the retailers came the wholesalers, following the wholesalers came the produc­ ers .. .. "Russia now finds itself at Italy's first stage," Colby continues, "with the pack of Marlboros replacing Lucky Strike. The black market is expanding, but it is a market by, who was stationed with the CIA in Italy in the 1950s, which will call forth 50,000 new small retailers. These, in neglects to mention that the cigarette black market was tum, will oall forth the wholesalers and then the producers administered by the Mafiaand the Camorra, crime organi­ who can supply their needs." zations reestablished by the American occupation forces, Colby claims that this black market created Italy's through such intermediaries as Meyer Lansky's partner postwar prosperity, not the "corrupt" state industries. Col- Charles "Lucky" Luciano.

75% of all invoices related to this import were falsified. a large black market for cigarettes dominated by Philip Mor­ Most of the imports came from West Germany. As Professor ris and Reynolds brands. There are two prime routes for Plachta stated, "The present [1992] flood of commodities, physically smuggling American-produced cigarettes into mostly imported and distributed by an army of street dealers Italy. One involves falsification of trucking TIR documents throughout Poland, has more in common with a black, rather in order to permit trucking delivery without paying customs than free market economy." and excise taxes on cigarettes. Ahother was to ship them Cigarettes and gas were also brought in. Did Edgar Bronf­ into the East bloc, and then down to the Yugoslavian and man's presence in East Germany in 1988 have anything to do Albanian Adriatic coast, where primarily Naples-based Ca­ with the flood of alcohol out of West Germany, through East morra crime families would arran e for high-speed boats to Germany, into Poland? Schalck-Golodkowski's "KoKo," smuggle the cigarettes into Italy. I under East German intelligence (Stasi) supervision, had often During 1974-75, a dramatic development occurred lead­ smuggled western-producedalcohol back into the West reap­ ing to an unbroken trend of annual increases in heroin addic­ ing significant hard-currency commissions. tion in the United States and west rn Europe. According to numerous sources, the Sicilian mafia and Naples Camorra Cigarettes and heroin: the Balkan route concluded an alliance which then d�ew in Turkish mafiafami­ Philip Morris has a long and ominous history of involve­ lies for a dramatic expansion of traffickingof opium products ment in the East bloc that centers on the interrelationship of out of the Middle East Golden Cr6scent into the West. The cigarette smuggling and heroin trafficking, East bloc intelli­ start-up capital for this venture carhe out of an expansion of gence services, and the U.S. control ofthe Sicilian mafiaand cigarette smuggling. One useful description of this is con­ Camorra apparatus reestablished in Italy after World War tained in the book The Mafia by paire Sterling. Unfortu­ II. Contacts from this period are the basis for the current nately, this book purports to docu�ent that the Sicilian mafia expansion of commercial sales and related development of itself is the global mastermind of organized crime. The role smuggling syndicates in the East. Italy has had for decades of the United States government irlre leasing Meyer Lansky

EIR May 21, 1993 Feature 23 associate Charles "Lucky" Luciano from a V. S. jail and send­ In December 1991, the Italia� government was of a dif­ ing him back to Italy to coordinate the mafia, reestablished ferent opinion. Under the directi<�n of then Finance Minister under supervision of V. S. Army forces at the end of World Formica, the government banne� the legal sales of Philip War II, is only briefly addressed, and then dismissed by Morris in Italy, charging that tij: company was complicit Sterling in a short footnote. Sterling, a close associate of with the smuggling networks wholcontrolled the illegal black V.S. intelligence consultant Michael Ledeen, also neglects market, dominated by Philip Morris's Marlboro brand. to identify the direct role of Philip Morris. Based on documentation developed by Italy's Guardia di Finanza (financial police), it was lalso charged that the ciga­ rette-smuggling network was on� and the same as that run­ ning the Balkan route heroin tra�fic. As was clear with the famous "Bulgarian Connection," �he easternintel ligence ser­ vices, under the KGB umbrella, �ayed. a major role in facili- The Stasi entrepreneur: tating this traffic. Schalck-Golodkowski Sofia,Bulga ria was one of t* centers for the cigarette­ heroin traffic. Philip Morris had a licensed production facility in Bulgaria which was also suppl�ing smugglers. Journalist Alexander Schalck-Golodkowski, a major general in Egmont Koch describes in the boJk Grenzlose Geschiiftethe the former East German communist secret service, the 1979 case wherein Philip Morris �old cigarettes to the Swiss­ Stasi, ran a special unit of the government called Com­ based Algrado AG, owned by WprnerDenz , a man cited in mercial Coordination (KoKo). From this post, he di­ 1992 in Italian press articles as a 1ink between Philip Morris rected a network of 148 business fronts worldwide, and the Camorra. The cigarettes �ere shipped from Antwerp, and was responsible for all manner of sensitive dealings Belgium to Lisbon, Portugal, lo�ed onto a Greek freighter with the West. for shipment to Burgas, on the �ulgarian Black Sea coast, Known as "Big Alex"-and not only because of and delivered to Despred Zoll, , Sofia-based state trading his 220-pound weight-Schalck-Golodkowski's main company. Greek officials, realiziqg that Bulgaria had no need economic function was to gather as much hard currency for importing Marlboros, since Fthilip Morris had a factory as possible, for use by the Stasi in subversion opera­ there, presumed that the cigarette� were in fact to be diverted tions worldwide. For example, the KoKo supervised for the Italian black market, and s�ized the ship while docked the East German company IMES, which regularly sup­ in a Greek harbor. Albania was �so involved in such smug­ plied weapons to U. S. National Security Council staff­ gling schemes, with Marlboro tije choice brand and Philip er Lt. Col. Oliver North for the Contras, as well as to Morris's New York City and Ladsanne, Switzerland offices the warring parties in the Iran-Iraq war. The KoKo' s in touch with WernerDenz as th¢ middleman. Cyprus ports multibillion-dollar arms-smuggling empire also also play a role as a centralizin� and breakdown point for worked with British, Swedish, Belgian, Italian, West ship containers of cigarettes. Nic�sia, Cyprusis also a major German, and other western firms (see EIR , April 16, offshore banking center, includjng for the Serbian banks 1993, "Dieter Bock: Front Man for the Stasi," for channeling dirty money for the w� effort. Schalck's ties with Lonhro's Tiny Rowland). Ac­ Like Bulgaria's Kintex state trading company, East Ger­ cording to German media reports, narcotics trafficwas many's state companies were i�licated in diverting Marl­ one of Schalck's specialties. boros into the Italian black mark�t. The Schalck-Golodkow­ As a reward for services rendered to the communist ski "KoKo" apparatus funneled w�stern-producedcig arettes, regime, "Big Alex" was awarded the Order of Karl using false documentation, to th� Italian black market. One Marx in 1982 by dictator Erich Honecker, and the East German company, Asimex, toutinely handled cigarette­ Great Star of the People's Friendship in 1984. smuggling responsibilities. In � 1980 case prosecuted in Several years before the fall of communism in East Darmstadt, West Germany, a srpuggling ring shipped 100 Germany in 1989, Schalck and other communist big­ million cigarettes into East Germany, where they were re­ wigs saw the writing on the wall, and began setting up documented and falsely declaredl the trucks sealed in viola­ secret bank accounts in Switzerland, Gibraltar, Lux­ tion of the TIR international fretht treaty by East German embourg, and elsewhere, preparing for a new life under customs, and sent back into thJ West without paying the capitalism. appropriate taxes. The cigarettes had been produced in Swit­ Schalck-Golodkowski now resides in a small lake­ zerland, shipped through West <]iermanyto East Germany, side villa in Bavaria, running new "business activi­ from East Germany back into ;West Germany, and then ties." He is currently the target of a subcommittee of through Austria to Italy. Much (>f the material on the East the German parliament investigating the crimes of the bloc role in drugs and cigarette /imuggling surfaced due to former communist government. the investigations of Judge Gemlain Sengelin of Mulhouse, France.

24 Feature EIR May 21, 1993 The French Military Mission in Berlin identifiedAsim ex in a 1982 report on cigarette smuggling. An article in the Oct. 5, 1992 issue of the Berlin newspaper Tageszeitung :/ reported that there were indications that numerous western intelligence agencies had their own people in high places in the KoKo apparatus in cooperation with the Stasi, and that many of the criminal activities in which KoKo was involved were probably joint projects. Judge Sengelin personally went after the number two official in French customs, Roger St. Jean, for protecting the joint East-West criminal activities. German police agencies are reviewing the documents of the Schalck-Golodkowski-supervised trading apparatus to con­ firm suspicions that figures identified in thecurrent cigarette black market syndicates might have a Stasi background.

Marlboros on the German black market German Customs and police officials are now seizing large quantities of black market Marlboros, the prime brand on the market, every day. They expected to seize 300 million cigarettes by the end of 1992, with estimates ranging from 3-5 billion black market cigarettes retailed in Germany per annum. There are three prime sources of supply for the ciga­ rettes: 1) free trade zone warehouses in Antwerp, Hamburg, or other ports; 2) Philip Morris's licensed plant in Poland; mf,>rm7fln'nni customs agreement do and 3) Red Army bases in eastern Germany. Philip Morris not have to be inspected at border until they reach their uses the Padhoek company warehouse in Antwerp for its final destination . They are usedfor fong-haul shipping throughout eastern Europe> and are infamous as carriers of contraband. U.S.-produced cigarettes. Mention of this warehouse sur­ faced in many of the Italian investigations into the Swiss middlemen who handled putting Marlboros in the hands of increase in foreign business, largely due to sales in eastern the Camorra and thema fia. Europe and the new eastern German states. BAT is a product There are multiple routes for getting cigarettes into the of a global monopoly structure lset up in the 1920s by the German black market. One operation involves a company in financial interests behind the various British and American Poland or the CIS states placing an order, which is docu­ tobacco companies. mented for duty-free transit through Germany, but which is The licensed production ofP ilip Morris in Poland makes diverted into the blackmarket by prior arrangement. In Au­ access to the German black market relatively easy: The smug­ gust 1992, Brandenburg customs officialsseiz ed 9.4 million gler can purchase cigarettes for �lleged domestic consump­ black market cigarettes. The head of the operation was a tion and then smuggle them of� to Germany with falsified Polish businessman from Hamburg who purchased the ciga­ cargo declarations, or declare the cigarettes for duty-free rettes from a producer in Germany and declared them duty transit through Germany and th9n divert them. Because do­ free for export by truck transport to Lithuania. The truck was mestic cigarette taxes in Poland are still low compared to seized at the point of unloading the shipment in a forest Germany, the price spread is High enough to guarantee a southeast of Berlin. smuggling profit, even if one regally purchases and pays Similarly, a May 1992 case in Brandenburg also involved taxes on the Polish Marlboros. a Polish group which ordered 100 truckloads of the British British and American customs and police agencies are brand "Golden American" from Zevenaar, Holland. Seized currently helping to protect Phi lib Morris's supply system to documents showed the al leged destinations on the freight eastern European smugglers. According to a report of the papers as Lithuania, Poland, CIS, and Czechoslovakia. One International Maritime Bureau ip London, a group of con­ of these shipments, handled by a Czech trucking company, artists, with.inside knowledge oj Philip Morris's black mar­ was unloaded in Glau, Brandenburg, and the empty truck ket cigarette trade, approached �ast European and Southeast driven on to the FrankfurtlOder border crossing to Poland. Asian smuggling customers with favorable offers for delivery

The purchaser of the cigarettes was a Russian who ran a of Marlboros. The smugglers, tHI inking the con-artists to be Vietnamese group of street peddlers. a part of Philip Morris's "parallel" trading structure, took The British-American Tobacco Co. (BAT), Germany's on consignments. The perpetrat�rs presented forged freight third largest tobacco producer, via its Hamburg factory, also documents that the shipments w�re on the way by ship, and turnsup in the black market. In 1991, BAT registered a 60% the smugglers transferred pay�ent. [n fact, the cigarettes

EIR May 21, 1993 Feature 25 Pornography at the Frankfu rt InternationalAi rp ort. Frankfurt has emerged in the last 20 years as one of the prostitution. and narcotics trafficking in Germany.

never arrived and the con-artists disappeared. Few such vic­ being doyolo"'" [0, "stay behind" p ses. ""d me unde, tho tims ever approach the police for help. But Philip Morris is control of those KGB or GRU ch�nnels which participated concerned that petty crooks might bring their black market in the pre- 1990 East-West joint cribnalL ventures. From the sales structure into disrepute. Law enforcement cooperation standpoint of a Russian military corh.mand interested in main­ with Philip Morris is not unlike that of J. Edgar Hoover's taining military discipline , this involvement of the Moscow FBI with the "Murder, Inc." of Meyer Lansky and "Lucky" elite in chartering the interface with the Anglo-American "free Luciano. trade" policy, with all of its criminal possibilities, brings with The Russian Army-based supply line is interesting and it serious challenges. By August 1�4, the Western Group is the subject of many investigations, including from Moscow. to complete its withdrawal from Germany, and it already faces The Red Army Western Group in eastern Germany is al­ serious morale problems which are �ade worse when individu­ lowed, like NATO foreign units in western Germany, to al soldiers , who have little to do with the bulk cigarette smug­ import goods for the troops, customs- and tax-free . Requisi­ gling, view and consider the sums of deutschemarks ferreted tion officers began placing massive orders for cigarettes for off into unknown accounts. the WesternGroup , again Marlboros being the main choice, In a February 1993 press conferI ence in Berlin, the com­ and stockpiling the cigarettes at military bases. From the mander ofthe WesternGroup , Gen�ral Burlakov , denied that bases, or via prior diversion, street peddlers , often Vietnam­ there were ties to a "Russian maRa" operating around and ese, run the retail sales, the lowest link in the chain. In out of the bases. He noted that the Western Group doesn't January 1993, customs surveilled a Polish-licensed truck control the purchasing and provisio I ing trade, which is large­ which drove onto a Russian military base in Schonow , north ly directed out of Moscow. There is a grain of truth to this of Berlin. Shortly thereafter, several small vans loaded with statement, because the creation ofttiebla ck market in Germa­ cigarettes were seized afterthey left the base. ny ran simultaneously with Philip �orris's Moscow arrange­ ments, which opened the flood of cigarettes into the then Red Army bases used U.S.S.R. Large quantities of American cigarettes donated While the smuggling conducted from Russian Army bases to Russia were probably the first bigarettes shipped to the is often attributed to individual officers and soldiers trying to Western Group, which began with a billion U.S. cigarettes earn hard currency before being shipped back to economic sent from the U.S.S.R. misery in Russia, it is more likely that criminal capabilities are In the meantime , orders are a so placed with the port-

26 Feature EIR May 21, 1993 based free trade zones. From the top, a wide network of working on the "Icon Mafia,'1 then largely dominated by wholesale-retail logistical capabilities were brought into Chechens who also ran prostittItion and protection rackets, play, of which the Western Group bases are merely one. particularly targeting exile RU$sian shop owners. The fact According to German customs experts, manuals have been that Moscow has undertaken ho serious measures against seized in raids which were given to criminals recruited to the the allegedly rebellious Chechektautonomous republic in the smuggling business. The manuals were "how-to" instruc­ Russian Federation, suggests t�at the Chechens might have tions for all aspects of smuggling, founding trading compa­ a special arrangement, and, in the criminal division of labor, nies, etc . The start-up capital to launch the business was also a role as killers, musclemen, aM enforcers. provided by "internationalfinancial channe ls." A series of 1991-92 killings in Berlin and the "Little An interesting investigation would be to identify the enti­ Odessa" section in Brighton Bdach, where professional kill­ ties in the former Comecon zone involved in creating false ers were sent in from Russia, s*ggests the degree of central­ invoices used to procure deutschemarks in the "transfer ru­ ized control being asserted. It would be a bitter irony if the ble" fraud launched after the July 1990 currency union of majority of honest Russian emigres find themselves being East and West Germany. West Germany agreed to honor all terrorized by the modem versioh of the "Murder, Inc." of the East German obligations to Comecon accounts receivable late U.S. crime boss Meyer Lansky (born Suchovlansky), still outstanding. The transfer ruble was the accounting de­ who was himself from pre-Bol$hevik Russia. As the widow vice to balance out trade exchanges between the Comecon of Andrei Kuznetsov, killed in Los Angeles in January 1992 countries and currencies. In the upwards of DM 8 billion by a traveling Russian hit team, stated, "Some people say fraud, state-owned or state-spawned companies all over the there's no doubt the mafia, KGB, and paid killers were in­ East produced falsified transfer ruble claims generated by volved." U.S. police sources state that the proceeds of U.S. nonexistent or back-dated trade orders. It is not expected that Russian emigre fraud and crime schemes play an important many of the deutschemarks paid out will ever be recovered. role when transferred back into the former Soviet republics, The easternGerman business entities cashed in their transfer where hard currency gives th¢ crime syndicates an upper ruble claims and secretly divided up the money with the hand in the chaos of the economic shock therapy reforms. The entities in the former Comecon countries that were complicit cooperatives in Russia, the firstof the Gorbachov privatized in the fraudulent invoicing. This money was not legitimately entities, have to a large degree l)eenbrought under the control accounted for, and had to be laundered; for instance, in the of the crime syndicates. founding of new import-export companies. The timing of the Throughout easternEurope and Germany there is a grow­ frauds coincided with the beginning phases of the cigarette ing, visible presence of the Russian mafia. Press accounts black market expansion. from 1992 reported that the R/Ussians now dominate orga­ nized criminal activities in Pratue, where upwards of 3,000 The 'Russian' mafia former Soviet citzens live illeg/llly. Even though Red Army Ultimately, access to protection offeredby secret services units left Czechoslovakia in the Isummer of 1991 , the Russian and to new "product" lines, like cigarettes and drugs, deter­ mafia maintains a presence, tbeir membership divided be­ mines the rate of financial expansion, and thus dominance, tween the 10-12 gangs active in the former U.S.S.R. Side­ of the many syndicates operating in the so-called Russian walk shell games, often run b� Romanians, Albanians, or

mafia criminal milieu at home and abroad. One of the cases Yugoslavs, are controlled by I the CIS gangs. Due to the handled by the Berlin prosecutors investigating the transfer war in former Yugoslavia, the :Czech Republic and Slovak­ ruble crimes highlights the relationship between Russian ex­ ia have become transit points for up to 80% of the Balkan iles in Berlin and the East German Stasi. Four people were route drug traffic into Euro� . Prague police report that arrested when police closed in on the group as it was about 120 companies newly found�d with the involvement of to transfer several hundred million deutschemarks to an ac­ Russians are believed to have, gotten their start-up capital count in Singapore. Three of the four had been on Stasi out of drug and weapons deaUng. Vienna police, working payroll lists, and one of them, Elmer Tanner, was a tax in collaboration with Budapest, Prague, and Bratislava adviser to Russian emigres in West Berlin. authorities, reported in 1992 that one-third of the new During the early 1980s, thousands of largely Jewish emi­ foundings of limited liability ¢ompanies are accounted for gres from the Odessa region of the Soviet Union settled in by the Russian mafia. Other reports indicate that there is Berlin. A similar exodus took place into the Brighton Beach cooperation between the Russian and Polish mafias in the area of New York City, home for 45 ,000 Soviet emigres; theft of lUXUry class cars, wh�ch are then sold in the East northeast Philadelphia, with 7-8,000; and Los Angeles-West and CIS states. A press report about Gorlitz, on the Hollywood. According to the German criminal investigation German-Polish border, claim$ that the "Polish markets" service BKA, 85% of West Berlin's casino-discotheques on the Poland side of the N�isse River are firmly in the were in the hands of Russian emigres, and were used for hands of the Russian mafia. Ip Offenbach, near Frankfurt laundering the proceeds from weapons, drugs, and counter­ am Main, it is reported that , 100 Russians with criminal feiting operations. The Berlin city prosecutor's office was backgrounds or proclivities have established themselves.

EIR May 21, 1993 Feature 27 Control of prostitution changing A mafia-run prostitution ring out of Russia and the East is rapidly developing due to the cheaper purchase costs rela­ Philip Morris, ijlc. , tive to western or Asian prostitutes. This could also lead to new relations and joint ventures with the established German the cash crop 'farrior bordellos. It should be kept in mind, for example, that the managers of the Frankfurt Railroad Station red light district, The Richmond, Virginia-based Philip Morriscompany is the Beker brothers, themselves came out of the Soviet Union a modern versionof the companies of the economically in the 1960s. This district has been, along with Berlin, one dependent, slaveholding South, which supplied cotton to of the centers of crime and narcotics traffickingin Germany the Manchester, England textile mills, which in tum ex­ over the last 20 years, and thus developments here reflect ploited the "free markets" poli¢ed by the British Empire. new arrangements in organized crime. The fields once tended by slaves now grow the tobacco According to the Miami, Florida police, the presence sold to Philip Morris and Reynolds. of Colombian and other Ibero-American prostitutes in the Tobacco exports have no� become one of the major Frankfurt am Main area is probably a direct arrangement U. S. cash crops. The U.S. trade deficitwould be $5 billion related to Colombia-to-Frankfurt cocaine trafficking, which bigger were it not for tobacco axports. As recently retired uses prostitutes as part of the infrastructure for moving the Philip Morris CEO Hamish Maxwell stated, "Outside the drugs. Miami is the prime coordination point for the trade in United States, most cigarettes are made and sold by gov­ Ibero-American prostitutes globally. ernment-owned enterprises; VIle are competing, for in­ The Bekers and their mentor, Frankfurt real estate mag­ stance, against the elected governments of Japan, Italy, nate Yossef Buchmann, maintain good relations in the old and France." Like the U.S. grain cartels, which are bank­ Meyer Lansky bastions of Miami and Las Vegas, and alleg­ rupting domestic and foreign farmers alike in the name of edly have invested part of their proceeds in south Florida real free trade, the U.S. tobacco giants are a tool for the Anglo­ estate. Handling street-level muscle for the Bekers is the American financial"g lobalization" policy. "Yugo," (actually Serbian) mafiaof Rade Caldovitch, which Philip Morris carries weight in the world. In 1992, is active from Belgium, Holland, Luxembourg, and Germa­ free trade proponent Dame Margaret Thatcher was hired ny, down to Austria. According to the book Die Verbrecher for $1 million as a "geopoliti¢al consultant" on eastern Holding by Jiirgen Roth and Marc Frey, Caldovitch's crowd was supervised by the Belgrade secret services, which creat­ ed the exile monarchist organization Ravna Gora as a front, permitting their crime operatives residence in Germany portant roles. Meyer Lansky didn't carve out his role, he through political refugee applications. Based on federal and was assigned his position by the Anglo-Americanel ite who state criminal investigation reports and interviews, Roth has developed criminal syndicates to !handle the flowof British also documented on German ZDF TV the role played by this and Canadian booze into the Unilted States during Prohibi­ Serbian mafia in setting up a cocaine distribution system in tion, and then, afterthe end of Probibition, rationalized them. Germany for the Cali, Colombia cartel. His Murder, Inc. apparatus, whiclb.imposed the "rationaliza­ Wiesbaden-based promoter Ebby Thust, convicted tion," worked in conjunction witlb. and via the protection of blackmailer of the father of tennis star Steffi Graf, was feted J. Edgar Hoover's FBI. The cigarette-smuggling market is a in November 1989 at an exclusive Wiesbaden hotel by Dan kind of marker for the mechanicsl of East-West cooperation Reichartz, head of the U.S. gambling consortium Caesar's in creating a new syndicate-style crime structure in the eco­ World International. Thust is reputed to have a share in a nomically devastated East. Las Vegas casino, and the event was intended to organize gambling junkets to Las Vegas. Thust, who got his start as Financing Serbia's war of aggression a pimp in the Bekers' bordellos, is also a close friend of The 1991 commencement Ofl hostilities by the Serbian Caldovitch. Belgrade was a center of the Balkans cigarette­ authorities in Belgrade was only :possible with the backing and heroin-smuggling business, and thus one can see the of Moscow and the Bush administration. Lawrence Ea­ intermingling of intelligence services and organized crime gleburger, deputy secretaryof state at the time, and a promi­ that would be important for analyzing current developments. nent member of Henry Kissinger's consulting firmKissin ger Hersh Beker is currently evading prosecution in Germany for Associates, worked with another Kissinger Associates part­ corruption and tax fraud; he escaped to Israel from detention ner, Lord Carrington, to ensure Serbia a free hand to perpe­ in Frankfurt through the intervention of the Israeli intelli­ trate ethnic cleansing and genocide. At the same time, in gence service Mossad. order to financethe war, mechanisms were put into place to A thorough investigation of these criminal manpower direct large sums of dirty money into Belgrade's hands to pools should turn up a kind of hierarchy whereby those who cover the costs of importingarmam ents, oil, and other essen­ have performed previous services get assigned the most im- tial goods. Serbian dictator Slobodan Milosevic was well

28 Feature EIR May 21, 1993 I Europe. R.J. Reynolds hired former U.S. National Secu­ Morris, this should come as no �urprise. An early- 1980s rity Adviser Richard Allen for similar purposes. Craig Swiss police source report des�ribes the role of Sofia, Fuller, former Vice President George Bush's chief of Bulgaria in cigarette smugglint and heroin trafficking, staff, became a senior vice president at Philip Morris after and notes the source's identifi�ation of a Turk was in being employed at the Washington, D.C. "fix-it" public contact with Philip Morris. Oth�r names provided to po­ relations giant Hill and Knowlton. According to January lice were part of the network �andling attempted papal 1992 ABC News and CBS News televised broadcasts, assassin Mehmet Ali Agca. : Hill and Knowlton was responsible for the fake story that ! Iraqi soldiers had taken incubators from Kuwaiti hospi­ C. Boyden Gray and Rey�olds tals, leaving the babies to die. One week later, Fuller was Reynolds tobacco, of Winstpn-Salem, North Caroli­ working at Philip Morris. na, has similar credentials. Th� company was primarily The company is integrated into the intelligence and in the hands of the Gray familyl Gordon Gray was U.S. covert operations side of Anglo-American strategic poli­ national security adviser during 1957 -60, and was a mem­ cy. In 1983, Philip Morris Public Affairs Director Bill ber of the Presiderit's Foreign Intelligence Advisory Greener was recruited by career CIA officialWalter Ray­ Board (PFIAB) until 1977. His s�n, C. Boyden Gray, was mond, a big-wig in Oliver North's "Project Democracy" legal adviser to George Bush wijile he was vice president apparatus, to design a pro-Contra publicity campaign. In and then President. i Panama, Philip Morris's representative, Elata Amaran, Both Philip Morris and Reynqlds have takenover major was the bagman to the Panamanian "opposition," distrib­ packaged-food producers, becoFg Philip Morris/Kraft uting part of the tax payments of U. S. companies in Pana­ and RJRNabisco . Philip Morris i� now the third largestfood ma which had been seized and deposited with the u.S. producer in Europe. Both compaJ)ieshave beenparticipants State Department as part of economic warfare against in the junk bond and "leveraged �uyout" asset stripping of Gen. Manuel Noriega. Elata was arrested in April 1989 the U.S. economy in the rnid-1980s. Over the last decades, in the state of Georgia by local police and the Drug En­ both firms became cash rich, in part by using smugglers to forcement Administration, on cocaine-trafficking expand markets, and are thus well placed to purchasebigger charges. Given the Balkan route involvement of Philip chunks of a collapsing world eco ' omy.

i known to Eagleburger. As former head of Beo Banka in conquered areas has shifted sorpe wealth into the hands of Belgrade, Milosevic was involved in business deals directly the Serbian government, but ag�in, not enough to make up with Eagleburger around the Yugo car export project and for shortfalls elsewhere. The Rqssian support of the Serbian other financialdea lings. war effort with oil and weapons fS generally a pay-as-you-go Over the last 18 months, private banks and bankers sur­ arrangement. Fuel coming fromlthe West, for instance, Mo­ faced in Belgrade offering 15% per month interest for hard­ bil Oil Corp. 's Thessalonika, Greece refinery, comes in at currency savings account deposits in their branches, and black market price markups reaqhing toward 400%. 200% per month on dinar deposits, in the face of a 25 ,000% Belgrade's role in the BalkaP route heroin traffic gave it annual inflation rate. With heavy unemployment and many an entree into the international loffshore money-laundering Serbs without any source of income, the interest payments system, and points to the source qf the cash flow. The increas­ on deposits in these banks amounts to a political payoffto ing activities of the Belgrade-tjun Serbian mafia active in dampen discontent that might otherwise arise due to the eco­ westernEurope is certainly onel source of hard currency. A nomic hardships of the war effort. As one expert stated, school for burglars is run in Belb-ade under obvious protec­ "Somebody is financing a hidden welfare system." tion of the secret services, with V'graduates" rotated all over Aspects of this came to light after Belgrade's Jezdomir Europe, putting stolen goods frobbreak ins into the hands of Vasiljevic, the head of Yugoskandic Bank, fled to Israel preestablished networks of "fendes." It is doubtful, however, in March 1993. According to press reports, this bank had that this source of hard-currenct could have been expanded upwards of 4 million accounts with some $2 billion in hard­ enough to cover the costs of theiwar effort even if one takes currency deposits. Where did this money come from? Al­ into account the increased role �f Belgrade and the Serbian though prior to the war Yugoslavia had a thriving tourism mafiain the westernEuropean n�cotics market. industry and small-arms export business, prompt payment of Some naive press accounts h,ve claimed that the schemes the former Yugoslavia's foreign debt of $14 billion sucked of Yugoskandic and its largdst "competitor," Dafiment up most revenues. The tourism industry has since collapsed Banka, are in fact similar to a�y typical investment fraud and the arms production needed for the ethnic cleansing effort to collect other people's moneyi by promising regular, high leaves only limited amounts for export. War booty from returns on real estate or com�: odity investments. SuchI a

EIR May 21, 1993 Feature 29 pyramid or chain letter fraud functions as long as expanding speCUlative boodoggles of the last 18 months. The geopoliti­ volumes of money are drawn in, permitting the crook to cal interest of the Anglo-Americans to fuel this war in Eu­ cover the expanding number of monthly payouts as well as rope, despite significant public, outcry, is such that the finan­ leaving a large sum for his own purposes. The trick is to rake cial interests behind Eagleburger and Carrington also made in enough and disappear at the point that new cash dwindles. black cash flows available on lioan to Serbia and its banking Allegedly, little Serbia swindled the pros in the international apparatus. hot money markets. The obvious success of financingthe war in this way did In fact, the same people who gave Serbia the green light to not depend on secrecy, but on the lack of action by western start the war also arranged the financing ofit. Serbia is not the interests. After six months of watching the complete regulari­ organizer of this cash flow-it is the beneficiary. This occurred ty of the 15% payouts, everybody in Belgrade, including in part by setting up the arrangements by which Belgrade-run diplomats, knew here was spmething very special. The domestic and offshore banking channels could be used, at the Cyprus presence of the banks ""as also known. Nothing was cost of a commission, to launder a part of the billions in cash done, despite the fact that the lJnitedNations sanctions also from primarily international narcotics trafficking every month. prohibited financial transfers to Serbia unless for medicine For this "service," Belgrade got a cut. Standard rates for laun­ and related humanitarian items. As of early April 1993, the dering cash can be from 3-7%, but under conditions of large United Nations Sanctions Committee for the former Yugosla­ amounts of cash generated by international illegal drug sales, via admitted that they had not approached the Cyprusauthori­ traffickers can pay over 30% and still not complain. The most ties regarding the Serbian bank$. The excuse was, "We didn't expensive step is almost always the first: bringing the cash into have any concrete information;" the system. Once in the system, electronic fund transfers and the maintenance of shell companies in offshore banking centers The 'Polish mafia' are relatively cheap. It is interesting to see what,companies became the rising stars in the trading and financial world of Poland under condi­ The Mossad's role tions of Harvard professor Jeffrey Sachs's shock therapy Defina Milanovic, the head of Dafiment Bank in Bel­ reforms. grade , shares ownership of the bank with Israel Kelman of In 1989, then Finance Minister Leszek Balcerowicz in­ Tel Aviv, who holds 25% of the shares. Yugoskandic's troduced shock therapy by lif):ing the state monopoly and Vasiljevic is currently hiding out in Tel Aviv, suggesting that permitting private firms to conduct import-export trade and the Mossad, and the dirty financial channels to which it is currency transfers . One of the big early stars of the shock appended, have played an important role for the Anglo­ therapy was the trading company Art B, founded in 1989 by American orchestration of the war financing. Sources famil­ three Polish jazz musicians in tlheir30s , with financialback­ iar with Anglo-American policy toward the former "buffer ing from Australia, Britain, and Israel. Profiting at firstfrom state" Yugoslavia, assert that Israel's military and the Mos­ the flood of western consumer products into Poland, Art B sad were assigned a supervisory role vis-a-vis the develop­ soon expanded into acquiring factories and negotiating joint ment of Yugoslavia's military and intelligence establishment ventures, and simultaneously participatedin schemes similar and weapons industry. to those of the Belgrade bankers. Art B served as a channel Banker Vasiljevic had lived abroad for 15-20 years, pri­ for depositing foreign currencies, allegedly borrowed from marily in Australia, and had been a "war zone merchant in foreign financialsources at favorable interest rates, in foreign the Far East," according to the London Observer. Perhaps exchange accounts at Polish banks with higher interest pay­ an old friend of Theodore Schackley's? ments on deposits. Bank Leumi in Israel and an Australian On the financial side, the arrangement would be similar billionaire, Jack Libermann, 4ad provided some of this fi­ to the method by which American commercial banks, threat­ nancial backup. Concurrently, Art B received loans from ened with bankruptcy by the 1982 Ibero-American debt cri­ Polish banks at favorable int�est rates. With this money, sis, were saved by the increasing flow of cocaine dollars into Art B, with inside cooperation from the Polish National Bank debt repayment. This process was managed, and had little to and the State Bank, took advantage of the several-day lag in do with the "free market." As German police have discovered the bank clearing system to deposit and withdraw money in cases of Serbian mafiosi operating in Germany, Belgrade such that they collected doubkinterest payments, ultimately offers no international law enforcement cooperation and is at the expense of the state budget. thus probably a better black hole for laundering illegally When the scheme was exposed in August 1991, the three earned money than Switzerland. Cyprus, a well-developed owners fled to Israel. The man�gement of Art B was turned offshore money center, is a prime base of operations for the over to a Poznan millionare, Aleksander Gawronski, and the Belgrade bankers. Thorough investigation would probably shares of the three to the Katowice Trade Credit Bank of also reveal that Belgrade's bankers got a privileged position Ryszard Jamszewski. This bank, a large "creditor" of Art B, to invest their hard-currency holdings in the orchestrated has since been kept alive by the Polish National Bank. Ga-

30 Feature EIR May 21, 1993 are hampered by the lack of fueHor police helicopters . The entire anti-hemp effort in th¢ Russian Far East has Dope trade in Russia: four people on staff. i Estimates of the size of the n�rcotics trade in Russia 'a real gold m ne' range from the Russian Ministry of the Interior's 60 billion rubles, to the 1 trillion ruble figure given by "independent Narcotics production and trafficking in Russia have be­ experts ." come "a real gold mine for the criminal world," according "Increasingly more informatin is obtained, that the to the cover story of the Russian weekly New Times, western narco-mafia is currently taking a special interest #14 for 1993 (April). There is a I ,000% returnon rubles in winning the Russian market," wrote New Times eco­ invested in the dope business. In a "chain reaction of evil," nomic analyst Nikolai Garkusha. "According to the data narcotics addiction is multiplying rapidly throughout by the Ministry of the Interior, late last year Russia was Russia. visited by emissaries of the Medelilfn Cartel," the Colom­ EIR warnedin 1991 that under InternationalMonetary bia-centered cocaine magnates. Fund shock therapy, Dope, Inc. was moving into the for­ Garkusha outlined a hypothesis about Russia's trans­ mer Soviet republics (EIR, Nov. 22, 1991, "Mafia Mil­ formation into "a grand international laundry for dirty lionaires Emerge as Spoilers in the New Russia.") money," in which the dope trade would intersect privatiza­ New Times profiled the indigenous dope plantations tion in Russia and the dumping · of cheap Russian raw in the former Soviet Union: the opium poppy fields of materials on internationalmarkets. "What can Colombian Central Asia, and the hemp valleys of the Russian Far mafiosi do with devalued rubles? There's no paradox in East. There, "hundreds of illegal pickers" risk their health it. Dollars and deutschemarks have actually become a and their lives in the fields of Manchurian hemp. "The kind of official alternative currency. Rubles easily ex­ best and most expensive [hashish] is obtained in a rather change for 'greenbacks' in Russia. But there's also anoth­ exotic way. Having completely undressed, a picker runs er way to launder drug money used by those new mediato­ through hemp thickets, shaking the pollen off on his ry structures which, thanks to corruption reigning sweating body. Then the pollen is removed from the skin, supreme in Russia, buy, illegally , oil and nonferrous met­ and the drug is ready for use. Running through hemp als for prices lower than international ones, to export to thickets , inhaling poisonous hemp vapors is a risky af­ the West. Independent analyst A. Volobuyev believes that fair-many ...lose consciousness and even die." New in conditions of chaotic privatization, narco-dollars and Times displays a photograph of a female hemp picker in narco-rubles can be used for buying real estate." action, on the front cover. Russian anti-dope operations -Rachel Douglas

wronski is the preferred local representative of several of the times by Interpol, but released. The British also had an extra­ Seven Sisters oil cartel companies. dition request against him which was not acted upon. Ac­ Early in 1992, another bank scandal hit Poland. One cording to Vienna police sources, Bogatin was offering him­ David Bogatin, a Russian emigre and fugitive from a 1987 self as an informant to the British . The same sources also conviction for fraud in New York City, had set up in 1990 emphasized that there was no great interest from the United the First Commercial Bank in Lublin. The bank, with $100 States about Bogatin. From Vielllna, Bogatin, virtually an million in deposits, had been offering depositors above mar­ asset of U. S. and British services, !organized the 1990 found­ ket interest rates and was dealing in hard currencies. It was ing of the Lublin bank with $6 million. Polish bank supervi­ one of the first banks to offer shares on the Warsaw Stock sory officials, still largely the old nomenklatura, strangely Exchange. Bogatin had been convicted in 1987 in federal never bothered to check with Vienna on his backgroundwhen court in New York City for his involvement in a gasoline they granted him his bank license, perhaps because the excise tax fraud run by Russian emigres in the "Little Odessa" Brighton Beach "Russian mafia" is often considered a joint section of Brighton Beach, in cooperation with the Gambino asset of the KGB and U.S. crime Circles. and Colombo mafiafa milies. The "Little Odessa" mafiasof Berlin and Brighton Beach Here the story of Bogatin becomes very suspicious. have a stranglehold on the smuggling of icons out of the CIS While out on bail, by agreement with the U.S. Attorney's states. The Polish mafia is known for its role in exchanging Officeand court, awaiting his sentencing to a five-year prison domestically produced illegal amphetamines for luxury cars term, Bogatin fledthe United States for Vienna. His where­ stolen in Germany. The Russian mafia procures many of abouts was no secret, as he was arrested in Vienna several these cars for sale in the CIS, often paying with icons.

EIR May 21, 1993 Feature 31 Ions of authority in Ukraine. They have also forged strong Organized crime makes links with internationalorganiz Cfdcrime groups, and diver­ power bid in Ukraine sifiedtheir activities-primaril� in banking and trade. The principal goals of the lJkrainian mafiatoday are perceived to be: to obtain illega� easements in exporttrade; The narcotics mafia has moved into the veryhighest levels to illegally obtain raw materials; to use foreign invest­ of the government of Ukraine. according to this report by ments to fund criminal activiti�s (such as narcotics, pro­ Dmytro Filipchenko in the New Jersey-based Ukrainian duction and traffic, and the sale!of nuclear materials); and Weekly of May 2. to embezzle humanitarian aid !arriving to Ukraine from abroad. An in camera meeting of law enforcement officials and As a result, organized crime in Ukraine is struggling top-level bureaucrats was held [in Kiev] on April 12. A to achieve control over the entire import and exportsyst em group of senior regional government administrators met of the country, and is seeking to guarantee its continued with the head of the Security Service, Gen. Yevhen access to hard-currency funds. They are also very interest­ Marchuk, and the firstdeputy minister of internal affairs, ed in the process of privatization of state assets. Some Gen . Valentyn Nedryhailo, to discuss the problem. governmentofficials are allegedly formingprivate compa­ A source close to the parliamentary committee on De­ nies headed by relatives, through whom formerlypublic fense and National Security suggested that among specific property passes into the hands dfthe underworld. Another subjects addressed was the penetration of criminal ele­ tactic is to undermine the quality of an industrial concern ments into the republic's executive structures [police and to the point that it can only be sold for a minimal amount, administration] at the national and regional levels. Speak­ and then purchase it privately. ! ing to reporters after the meeting, General Marchuk said Indicative of organized critne's pervasive influence, it was quite possible that entire branches of the economy various reports in the print media in Ukraine . . . have and even regions of the country could fall under the com­ alleged that the main reason for �he removal of Ihor Y ukh­ plete control of the mob. novsky from his post as first deputy to Prime Minister Profiting from the after-effects of the collapse of the Leonid Kuchma on March 17, lWas his exposure of hard­ U.S.S.R., various gaps in the existing legislation and en­ currency speculation within the country's Ministry of forcement, and a lack of regulation of economic relations Health. Others allege that Dr. )1ukhnovsky's sacking also between the enterprises and the state, criminal elements forestalled his intended investigation of such practices in have created so-called "support groups" in the highereche- all ministries of the government.

Financial laundering services sell a certain amount of copper.. You and your foreign part­ According to a German customs source, much of the ners draw up a contract. You never see the copper itself, but money that has flowedinto the East has gone there purely for the company that allegedly sold it through your enterprise laundering purposes. It goes in and comes out. As in the transfers the 'clean money' to its bank account. Your joint Polish and Serbian case, a certain portion is "parked" there venture gets 15% for mediating.!" The variations are manifold to facilitate acquisitions, usually of an asset-stripping nature, so long as the Russian and westernsides have a joint purpose. and dirty political operations. According to Valentin Rosh­ The ruthless, unbroken drive since the early 1970s for chin, head of the Moscow Interregional Drug Enforcement international financial liberaliaation or "globalization," is Bureau, "As soon as the money crosses the border of the based on the equation that liberalization equals no govern­ former Soviet Union, it automatically becomes clean. Com­ ment interference, i.e., nothing is to be transparent or trace­ mercial shops and banks, state financial institutions all ex­ able. With the creation of ex<)tic derivatives markets and change money freely. No one will even ask where you have trillion-dollar computerized global funds transfers, the use­ gotten the cash in the firstplace ." fulness of offshore banking and tax havens becomes magni­ Roshchin also identifiedjoint ventures as a major area fied. The decline of the physicroeconomy and parallel ruble for criminal activities in the new business world. "They pres­ inflation has created a situation: where that small percentage ent the easiest channel for laundering money if need be," he of the Russian population andVor institutions which could said, since 25-27% of the drug dealers in Moscow work for accumulate finances, needs to have access to the mechanisms cooperatives or joint ventures. He described one of the many of flight capital. Like any Thitd World country constantly techniques which can be used. In a non-existent copper ex­ driven through currency devalulations by the IMF, it pays to port deal, for example, "your joint venture is approached to structure your finances and business so that most of it is in

32 Feature EIR May 21, 1993 hard currency and preferrably abroad, particularly if it comes To fight crime, end free ..arket liberalism from black market sources. The late 1991 fit ofmutual allega­ Numerous discussions by the author with law enforce­ tions about shady financialdealings between Boris Yeltsin's ment officials make it clear thati the problem of combatting circle and the Soviet Communist Party documents how much the new crime syndicates being developed in the East cannot all factions are being seduced to launder their financialaccu­ be solved unless the countries in question simultaneously mulations into the nooks and crannies of the international adopt sane economic policies that dry out the radical free financial markets, abroad and at home, insofar as they are market in the trade and financialsphere . Otherwise, no police directly established within Russia. Like going from "soft" to agency will be able to attack the controllers of the emerging "hard" drugs, once started, the participant in this process syndicates and, at the same time, respect the gray and black becomes increasingly addicted to the short-term monetary economic zone that is synonymous with the radical free highs. Russian industry and mining are currently being market. stripped clean and dumped on the international markets to This was made extremely Clear in the Italian govern­ accumulate hard currencies to further participate in such ment's December 1991 effort t break Philip Morris's de­ schemes. cades-long role in the Italian cjgarette black market. The Essentially, banks in the East risk becoming as useful to U.S. government, along with PhlIip Morris, came down hard the countries hosting them as did the banks in Panama when on Italy. Discussions on organized crime and heroin and it became a major offshore banking center. Tens of billions cigarette smuggling were to be a purely "internal"aff air, the of dollars were allegedly on deposit there, but had no useful Italians were told, and Philip Morris was not to be touched­ effect on the national economy. To the extent that banks in and it was not touched. "You c�n't blame Philip Morris for the East function as participants in the international Casino what third parties do with their cigarettes after they're sold, Mondiale, they function to vacuum liquidity out of the host that obstructs free trade," the argument went. In Germany, country, leaving behind a bankrupt physical economy and officialsadmit in private that Philip Morris is fully involved worthless currency. in creating the black market, but they still concentrate their enforcement effortson the street:distribution system. The switch to narcotics It is the ultimate in hypocrj.sy that the United States, It is the publicized opinion of most German law enforce­ which loudly demands that other nations criminalize money ment people working on the cigarette-smuggling problem laundering, is the leading nation,!along with Britain, promot­ that the real danger is the development of criminal expertise ing ultra-liberalization of the int�rnationalfin ancial markets. and networks which can easily switch over to narcotics. A A discussion with a leading American official at the FOPAC primary limitation on the extension into the former Soviet money laundering center at Interpol's Lyon, France interna­ Union of direct traffickingnetworks is the inconvertibility of tional headquarters, made this very clear. This center was the ruble. Traffickersbri nging in foreign-produced drugs are founded and in part run by Americans from the InternalReve­ confronted with merely accumulating increasingly worthless nue Service. The official had been approached on the ques­ rubles. Of course, illegal domestic production for domestic tion of the role of the mid-198Qs junk bond market in the sale has a different meaning, but the real issue will be whether United States in soaking up billions ofhot , illegal cash flows, the areas of the former Soviet Union become drug producers primarily the laundered proceeds of drug trafficking. The and exporters. In this case, the status of the ruble plays no officialcould only comment, "It might be the case, but that's role and, in fact, facilitates the lure of an illegal cash crop way over our head." export item much in the same way that Peru and Bolivia The Anglo-American finanoial interests are creating a became dependent on cocaine. system where criminality is promoted, but in which they According to Russian Drug Enforcement Bureau head retain the right to decide which criminalscan participate. The Valentin Roshchin, ''I'm of the opinion that in a decade the role of private intelligence companies like Kroll Associates, Central Asian region will become for Russia what Colombia staffed largely with former intel:ligence and police officials is now for the United States." The Central Asian republics, from Britain and the United Stlates, is to help administer Tajikstan, Uzbekistan, and Kyrgyzstan, with many small which criminal networks are put on the black list and which opium poppy fields, could become a source for the world are not. Official police channels; with limited resources and market. If global arrangements were put into place, the con­ oft-times politically circumscribed investigating powers, trollers of various criminal syndicates in the CIS states could merely put the final nailin the coffin of a blacklisted group. invest rubles in opium and heroin refining, and utilize their The involvement of Philip Morris and similar companies smuggling capabilities which cover easternEurope and reach in the East, with elements of the KGB, corrupt elements into western Europe. To a certain extent, the U.S.S.R. had in the Russian Army, and apparitchiks-turned-"Manchester already served as a transit route for heroin and hashish com­ capitalists," must be cleared out of the way if a healthy indus­ ing out ofthe Golden Crescent ofIran, Pakistan, and Afghan­ trial capitalism is ever to develop for the benefitof the citizens istan. of the states of easternEurope and the former Soviet Union.

EIR May 21, 1993 Feature 33 �TIillInternational

Clinton State Dept. adopts Bush line on Ibero-America

by Valerie Rush

, By wholeheartedly embracing the so-called human rights and Rodriguez Corro's finding, thd case will go to the Congress demilitarization approach of its predecessor toward Ibero­ for a vote on liftingPer ez's immunity, preparatory to a Senate America, the Clinton administration is signing on to a cata­ impeachment trial. strophic policy course south of the border. Under the noxious Although Perez had initially indicated that a full Supreme influence of the Inter-American Dialogue (IAD)-a sort of Court decision favoring the indictment would be sufficient WesternHemi sphere Trilateral Commission which wrote the to prompt his resignation, he has since reneged. On May 11, Bush policy on Ibero-America-President Bill Clinton has he told Spanish television that be would merely seek a leave ended up backing the wrong governments in Ibero-America, of absence and appoint a cabinet minister to replace him and is promoting policies which are paving the way for narco­ during the trial. The head of Pqrez' s Democratic Action par­ terrorist takeovers in that part of the world. ty, Humberto Celli, told the p�ss that such an alternativeto Exemplary are the cases of Venezuela and Peru. In Vene­ resignation "would lead to riots in the streets." International zuela, where more than 90% of the population despises its wire services such as Britain's Reuters are also reporting that corrupt government, President Carlos Andres Perez's sole Venezuelans might take to the streets if Perez is absolved. In bulwark of defense is Washington. And yet in Peru, the fact, there is a very realprospeqt of civil war if Perez survives highly popular government of President Alberto Fujimori, this latest move to pry him out �f the presidency. which has dealt devastating blows to the Shining Path narco­ Perez is reportedlyresortin g to police-state maneuvers to terrorist gang, is under the combined siege of Shining Path help him cling to power. According to Juan Liscano, leader and corrupted elements of the Peruvian Congress and mili­ of the opposition Patriotic Frqnt, Perez and a small coterie tary, backed unabashedly by the U.S. State Department. of military loyalists are attemRting to orchestrate a series of The resulting destabilization of the continent is paving the terrorist acts, which would then be used as a pretext for a way for an explosion of narco-terrorism, and even civil repressive crackdown, and even engineering a "self-coup" to war will spread across the continent unless Clinton reverses allow him to remain in the presidency. course. It is also feared that the Supreme Court and/or Congress might be pressured and bribed by Perez to vote in his favor. Venezuela: dictatorship by any other name Although Perez's notorious personal corruption is the Venezuelans are anxiously awaiting the results of a Su­ immediate driving force behind the popular sentiment for his preme Court decision to be handed down May 20 on whether impeachment, the underlying i hatred of his government is sufficient evidence exists to try President Perez for his role in universally attributed to the devastating effect his neo-liberal embezzling millions in public funds. A 73-count indictment economic "reforms," dictated by the InternationalMonetary against Perez was submitted to the Supreme Court by Attor­ Fund (IMF) , have had on a cou41try once oneof the wealthiest ney General Ramon Escovar Salom, and has already been on the continent. By slashing tbe investment budget, keeping approved by Chief Justice Gonzalo Rodriguez Corro. Should interest rates sky-high, and pc:!rmitting imports to flood the a majority of the 15 Supreme Court magistrates support country under his free-market policies, Perez's government

34 International EIR May 21, 1993 The United States is backing the corrupt dictator Carlos Andres Perez (right), calling him a "fellow democrat, " while doing everything possible to sabotage Peruvian President Alberto Fujimori (left), who is waging afull military war against the narco-terrorists . This was the Bush policy; why doesn't Clinton get smart? j is responsible for devastating the country 's agricultural and fledbacking as a "fellow democrat " President Clinton, who industrial sectors , thereby driving up unemployment and has every reason to shun the corrupt Venezuelan leader as prices and pauperizing a large proportion of the country's the dictator that he is, has instead aecepted the urgings of the middle and working classes. Money that once went into in­ Inter-American Dialogue-perhap at the behest of former vestment is now pouring into speculation, and drug-money Dialogue president Richard Feinberg , who today runs the laundering is considered the country's only "boom industry ." Latin America desk at the National Security Council-and Despite the fact that Perez has only survived two military has thrown his support to the besi ged Perez, thereby alie- coup attempts by the skin of his teeth, has repeatedly em­ nating an entire nation . ployed police-state methods to repress the country 's huge protest movement, and is facing likely impeachment pro­ Peru: U.S. backs Shining PathI ceedings, the Clinton administration continues to argue the In Peru , the Clinton administtatI ion has again made a Bush line that "Perez equals democracy," and has to be de­ disastrous choice. Only here , Presiqent Clinton's preoccupa- fended at all cost. tion with defending "human rights ' has, under the direction In mid-April, the Clinton State Department sent a com­ of the Inter-American Dialogue, placed his administration in munique to the Venezuelan Military High Command warning league with one of the most genocidal subversive movements that any move by the military to dump Perez would lead to in the world. an immediate U. S. suspension of relations with a successor The problem began in April, when Clinton received the government--even if new elections were promptly called. credentials of Peru 's new ambassador in Washington, with According to local press reports, the statement stirred "huge a brief but politically explosive speech. Breaking protocol, unrest at various levels of the Armed Forces, including the Clinton stated that his administration appreciated Peru's high command, because it represented ...an intervention progress on the human rights front, but demanded further into the internal affairs of the country ." steps in that direction, and fu ll auto omy for Peru 's Congress Perez was a favorite of the Bush administration, and in pursuing alleged incidents of ab se. in return for promoting Bush's "new world order" on the With this international backing a gaggle of pro-terrorist continent-including IMF dictates and repeated public at­ Peruvian congressmen attempted to use concocted "evi­ tacks on Ibero-America's armed forces-received unquali- dence" of military human rights anuses to indict the institu-

EIR May 21, 1993 International 35 tion ofthe Peruvian military as a whole. Armed Forces Com­ responsible for "systematic v�olations of human rights of mander Gen. Nicolas de Bari Hermoza fought back by Peru's popUlation." Robles's �ccusations were made from accusing the congressmen of serving as "allies of the internal the U.S. Embassy in Lima, �here he and his family took enemy," that is, the Shining Path terrorists, in a systematic refuge. Robles has since flow/n to Argentina, and has an­ effort to discredit the country's defense forces. He specifi­ nounced plans to travel to Wabhington, where he hopes to cally refused demands that he release the names of military testify before the U.S. Congrds and establish a residence. intelligence officers, insisting that this would constitute a Robles had been the numbbr-three man in the Peruvian veritable "hit list" for terrorist assassins. Army until his links to a State Department-backed coup at­ General Hermoza is nationally credited with the Fujimori tempt against Fujimori last Noyember were exposed, and he government's successful persecution of Shining Path, which was relieved of his command over Peru's southern region began in earnestin April 1992, after President Fujimori shut and demoted. down the terrorist-infiltrated Congress which was sabotaging Robles has demanded that Pk-esident Fujimori fireGeneral his anti-terrorism efforts. He is considered an important ob­ Hermoza and replace him with pen. Jose Valdivia, an officer stacle to the efforts of such Project Democracy mouthpieces whose loyalty was sharply que�tioned during the November as the lAD to dismantle Peru's Armed Forces and eliminate coup attempt. Valdivia is curtently assigned to a post in the country's national sovereignty. It is no accident, there­ Washington. Robles went so f�r as to demand that Fujimori fore , that military commanders from around the country, and name him Army inspector getteral, where "I would be in Army ranks in Lima, conducted an impressive show of force charge of investigating and putting on trial those responsible in defense of General Hermoza, and ofthe military institution for human rights violations." Robles received the public en­ itself. dorsement of imprisoned generral Salinas Sedo, who had led Yet the Clinton administration, at the urging of its lAD the attempted coup against President Fujimori last Nov. 13. advisers, abandoned all pretense of respect for the principle General Hermoza respondFd to Robles with a May 6 of non-intervention and ordered Assistant Secretary of State statement noting that Robles bias not offered a single shred for Inter-American Affairs Bernard Aronson-a hold-over of evidence to back up his charges. He added that these from the Bush administration-to step into the fray . On April "tendentious imputations were formulatedby an officerwho 22, the same day that Army tanks ostentatiously paraded past only now publicly maintains that he knew of presumed hu­ the U . S. Embassy and Peruvian Congress to defend their war man rights violations. He had theobliga tion and moral duty against subversion, Aronson called President Fujimori on the to courageously denounce them when they occurred, ac­ telephone and warned him that "the United States views this cording to the principles of military honor and decorum, as show of force as an unacceptable attempt to intimidate the solid military behavior dictates." legislature ....The Congress has every right to investigate On May 9, President Fujimori issued a statement fully human rights affairs in Peru." U. S. charge d' affaires in Lima supporting General Hermoza, praising his leadership in the Charles Bradshaw went even further, publicly warning that anti-subversion effort, and vowing that unless "concrete evi­ the Armed Forces' defiance "not only endangered democra­ dence" of rights violations were presented to him, there cy, but also puts internationalaid [for Peru] at risk." would be no changes in the military command. Minister of On April 27, the Washington Officeon Latin America, Defense Gen. Victor Malca accused Robles of "disloyalty" a leftisthuman rights lobby associated with the Marxist The­ before the Peruvian Congress,' and the Supreme Council of ology of Liberation networks on the continent, sponsored a Military Justice has since stripped Robles of all rank and has seminar on Peru in Washington, D.C. which served as a begun proceedings against him for "insubordination, in­ sounding-board for the anti-military diatribes of Peru's con­ sulting his superiors, affronting the nation and the Armed gressional allies of Shining Path. The seminar boasted of the Forces, desertion, and fraud." presence of such Washington luminaries as Luigi Einaudi, The surfacing of Robles and his timely accusations former U. S. ambassador to the Organization of American against Hermoza are getting wide play in the U.S. press. States, Philip MacLean, assistant to Bernard Aronson, and The May 12 New York Times linterviewed him, making no Peter Hakim, the head of the Inter-American Dialogue. mention of his ties to the would-be coup-makers and giving his undocumented charges full credibility. The Times article Robles spouts lies from U.S. Embassy also contains a clear-cut message to the Fujimori govern­ These U.S. threats and pressures notwithstanding, Gen­ ment, by quoting an anonymous "senior State Department eral Hermoza-backed by President Fujimori-refused to official," who insists that no U.S. aid will be given Peruuntil capitulate. It was at this point that Gen. Rodolfo Robles investigations of these human rights violations have been Espinoza appeared on the scene. Army General Robles re­ conducted, and the offenderspuni shed. "From a foreign poli­ leased a letter to the media in Peru on May 5, accusing cy standpoint," the official said, "human rights is a sine qua General Hermoza and presidential adviser Vladimiro Mon­ non ....And Peru, I think it is safe to say, is the test case tesinos of running a death squad within the Army that was for Latin America."

36 International EIR May 21, 1993 Ta iwan is joining Beijing in the destruction of China by Michael Billington

The memory and the moral leadership of the founder of the in low-technology process indust�ies in the mainland, whose Chinese republic, Dr. Sun Yat-sen, were badly damaged in profitability depends entirely upon the average $35 per month April, as officials from the Republic of China (R.O.C.) in wage of mainland workers-a sIiall fraction of the wage of Taiwan and the People's Republic of China (P.R.C.) in Chinese workers in Taiwan. AbSent entirely is any sign of Beijing met for the first time since the 1949 Communist the extensive and ambitious plaqs for the transformation of revolution. The discussions came in the context of a nearly China along the lines of Dr. Sun Yat-sen' s 1919 International total capitulation in Taiwan's political and business leader­ Development of China. ship to the policy of making as much short-term profit as ' possible through the exploitation of the 200 million desper­ Sun Yat-sen's legacy betrayed ate, unemployed peasants in the mainland who are being The collapse of Taiwan 's vision for the mainland has been recycled through the free trade zones by the reforms authored increasingly evident under the presidency of Lee Teng-hui, by the InternationalMonetary Fund (IMF) and carried out by who assumed the presidency afterthe death of Chiang Ching­ Deng Xiaoping. kuo, Chiang Kai-shek's son, in 1987, and who was elected in As this new policy has developed, the primary mission his own right in March 1990. Lee ",bolished the core institution which inspired and guided the development of the Republic responsible for the economic development plans for the main­ of China in Taiwan-namely, the commitment to the eventu­ land, the China Reconstruction Planning Commission. This al liberation and development of the mainland-has been commission, established in the early 1960s by Chiang Kai­ effectivelyabandoned. shek, published over the past q�arter-century hundreds of The meetings were held in Singapore under the patronage books and research papers on eV)ery aspect of the necessary of the longest-standing British asset in the Chinese diaspora, transformation of China. The commission's method was Singapore's senior statesman Lee Kwan Yue, the prime min­ based on Dr. Sun's policy, which in tum was derived from the ister of Singapore from 1959-91. The P.R.C. 's Wang Dao­ "American System" developed and implemented by Alexan­ han, head of the Association for Relations across the Taiwan der Hamilton and his followers, QP to and including Abraham Strait, and the R.O.C. 's Koo Chen-fu, chairman of the Straits Lincoln. Following Dr. Sun's approach, the Planning Com­ Exchange Foundation, held three days of talks April 27-29, mission rejected the British free trade dogma, insisting on marking the firstofficial high-lev el, face-to-face contact since Hamiltonian methods of government-directed credit for infra­ Chiang Kai-shek's Nationalist Party (Kuomintang) forces structure, critical sectors of industry and agriculture, and fun­ were driven off the mainland in 1949. Taiwan's negotiator, damental education and health slandards-methods that had Koo Chen-fu, one of the richest men in Taiwan, is a close ally succeeded in transforming the R.O.C., in Taiwan, despite its of the Anglo-American financial establishment. His father is small size, into one of the leading productive economies in infamous as the man who served as the leading Japanese agent Asia. Planning Commission publications worked out details during the Japanese occupation of Taiwan, and the son is for transportation, communications, energy development, widely feared to be prepared to sell out Taiwan's interests credit structures, land reform, foontier development, educa­ again today, this time to the Communist Party of China. tion, etc. , as well as policies for local governmentto facilitate A final communique announced agreement on several a transformation to republican rule. areas of communications, immigration, legal and business Under the growing influenc� of the U.S. State Depart­ relations, while setting up further negotiations on unresolved ment-supported opposition Democratic Progress Party issues. Direct air links and Taiwanese oil exploration in the (DPP), and a related faction around PresidentLee Teng-hui mainland are expected to be established over the near term. within the ruling Kuomintang, the idea of "Taiwan indepen­ But the primary import of the meeting is its symbolic dence" was sponsored as a thin disguise for ending the moral significance. While Beijing has achieved an ideological vic­ responsibilityfo r the fu ture of aliof China which had guided tory, Taiwan has shown itself to be guided by no greater the Republic of China's existencein Taiwan. In its place, the concern than the ability to protect its expanding investments IMF policy toward China was to be adopted, encouraging

EIR May 21, 1993 International 37 glo-American financialel ite wh appreciate having Deng Xi­ aoping's tanks preventing any esistance to the "blind flow" of unemployed into the free tra6e zones, it is a totally false view of Confucianism. The Confucian tradition, as contained in the works of Confucius and encius, and as advanced by the Confucian Renaissance in th�e IIth and 12th centuries un­ der the leadership of Chu Hsi (Zhu Xi), shares with Christian Platonism the idea that individ�al man's creative power of reason is precisely that gift of Heaven which characterizes mankind's identity as a species, hs distinct from all lower spe­ cies, and upon which the succe�sful development of society depends. Lee Kwan Yue's "co�munitarianism" is more in keeping with the historic enemie I of Confucianism, the Taoist and Legalist schools, or with the degenerate "enlightenment" school of pseudo-Confucian pragmatism associated with the 16th-century school of Wang Y�ng-ming. In an interview with Lee K w�im Yue published in the Win­ ter 1992 issue of the New Perspe tives Quarterly, Lee praises the way "Confucian ways have been moderated by the 100- Sun Ya t-sen's ambitious program fo r industrializing China is odd years of British rule in Hon� Kong." His views on eco­ being thrown out, infavor of coolie labor infree trade zones. nomics are pure British "free tr�de," based on management l rather than production. He speak of power being shifted from Deng Xiaoping' s near-total disregard for economic or human Beijing to the provinces-espec�ally to the free trade zones­ infrastructure , while ruthlessly squeezing the Chinese peas­ but does not address the desperate need for vast nuclear and antry , thus creating the largest mass unemployed labor force other advanced forms of energylproduction. in human history-200 million strong-to provide dirt-cheap Lee Kwan Yue, like his friend Henry Kissinger, praises coolie labor for the free trade zones. Lee Teng-hui' s abolition Deng Xiaoping's massacre of the 989 Democracy Movement. of the China Reconstruction Planning Commission , dis­ "The demonstrators didn't think i� through .. ..The tragedy of banding the scientists and political economists who were Tiananmen was that the participants got carried away by the dedicated to Sun Yat-sen's dream of a strong Chinese nation dynamics of mass emotions in a very densely populated city. contributing to world development, symbolizes the bank­ . . . The whole thing had evolve into an attack on Deng. . . . ruptcy of Taiwan's current policy toward the mainland. In my view, that was unwise. There are , after all, no traditions in Chinese history of satirizing th� emperor." Lee Kwan Vue, British racist agent Whence derived this just r�ght to rule? Not, says Lee It is not surprising that the sponsor of the meeting was Kwan Yue, from the consent 0 the governed, nor from the Singapore's ex-prime minister Lee Kwan Yue, a lifelong Confucian "Mandate of Heave " based on the successful spokesman for British policy in Asia. Lee has become the advancement of the population' well-being. For Lee , as for leading organizer of a "Greater China" movement to unite Mao Zedong and to the Britis colonialists, power comes the P.R.C., Taiwan, Hong Kong, and Singapore , based on from the barrel of a gun: "Deng ...will not stand for irrever­ the economic model of the drug-money capital of the world, ent doggerels that could destabilI ize China and throw it into colonial Hong Kong. Lee openly admires both the British chaos . Who gives him the right? He gave himself the right. colonial form of dictatorship by the Hongkong and Shanghai That is part of Chinese culture ...If someone wants to Bank in Hong Kong, and also the Maoist variety of dictator­ challenge him, they will have to take a gun and organize and , ship in the mainland. He enthusiastically supports Deng Xi­ fix him! Questions of human rig�ts in China must be viewed aoping's combination of the two-enforcing a radical free in those terms" (emphasis added . trade destruction of the economy with Stalinist methods. Such a view in Taipei toward the 1.2 billion people in To provide an "Asian" gloss to this treachery , Lee K wan China will inevitably contributd to a new holocaust in the Yue fe igned an interest in Confucianism late in life, and mainland. If there are to be neg�\iations, they must not be at concocted a pseudo-Confucian argument that Chinese-and the expense of the vision of ChIna propounded by Dr. Sun Asians in general-are culturally incapable of a sovereign Yat-sen. As the depression in th West intensifies, and as the individual creative identity, but only of a "communitarian" economic crisis in the P.R.C. intbrsects the impending death identity. Similarly, human rights are a "western" concept of Deng and the "Gang of Anci nts" still ruling China, the which does not apply to Chinese. tradition of Sun Yat-sen must be kept alive to contribute to Although such racist views are most welcomed by the An- the enormous task of developing China.

38 International EIR May 21, 1993 SouthMr ica on the way to repression witha' democratic face by Uwe Friesecke

During a visit in London at the beginning of May, the presi­ governmentof national unity. While, therefore, the multipar­ dent of the African National Congress (ANC), Nelson Man­ ty discussions are preparing wi�e-ranging constitutional dela, stated that one early decision of a new South African changes, there are already agreerpents being made behind government would be for reentry of the country into the the scenes that impose good beha ior of the South African British Commonwealth. This announcement is the key for government toward the Internatio al Monetary Fund (IMF) appreciating the profound strategic nature of the process of and the creditor banks. That is at ,so true for the especially change in South Africa. Three years ago, when Namibia important economic area of minink. Consequently, the gov­ gained independence, Sam Nujoma, the head of the govern­ ernmentis no longer allowed to le�y commissions on newly ment in Windhoek, proceeded in the same way, and made granted mining rights, and at the e�d of 1993, all payments of entering the Commonwealth his first act in office. commissions cease on rights that have already been granted. The geopolitical goal of having the British flag flyingon the Cape is being pushed forward in a new way. A certain Mining and apartheid historical tragedy was not lacking when Nelson Mandela, to This is the actual heart of apflrtheid policy, which has whom the West has assigned the role of the man who will not yet been questioned publicly. For 100 years, the gold, overcome apartheid, stated in London, "We have never for­ diamond, and strategic metal depo�its of Africa were exploit­ gotten that England is the home of parliamentary democracy, ed for De Beers, Oppenheimer's Anglo-American Corp., and that is what our efforts are directed toward," and thus and the London Rhodesia Corp. (Lonrho), among others, by paid homage to the very power that has been the incarnation a system of the most brutal repression in the mines of itinerant of colonialism for the last 300years . Has Mandela forgotten workers, who were packed together in infamous "dormitor­ that it was the British who in 1909, in the House of Com­ ies." The geopolitical goal of the �nglo-American establish­ mons, passed the South Africa Act of Union, and thereby ment is, without doubt, to maintain this control over raw created the apartheid system in the firstplace ? materials in the post-apartheid eta and to so influence the Negotiations at the end of April in London of the South process of constitutional change that their interests are not African government with its creditor banks were hardly no­ endangered. ticed by the international press. These negotiations con­ The ANC's silence on this clljlcialfact casts doubt upon cerned the continuation of the third interim agreement be­ its conduct and struggle for power, and puts the leadership tween the banks and South Africa that runs out at the end of of the ANC, which is dominated �y the South African Com­ 1993. In 1985, the South African government declared a munist Party (SACP), into a blatant contradiction with its moratorium on the repayment of a part of its foreign debt, publicly represented claim of being the principal spokesman but has serviced the other part since then with substantial for the anti-apartheid struggle of �he black population. Nei­ repayments. In 1985, the foreign debt totaled $27.7 billion. ther Mandela nor the ANC negotiations leader, Cyril Rama­ At the end of 1992, it was still approximately $18 billion. phosa, former chairman ofthe mine workers union, has ques­ During the last six years, South Africa has annually repaid tioned the repression of the llliack population through $1 billion in debt, more than any other African country. The indebtedness to the IMF and t� structure of the mining South African delegation offered at the London meetings, system. which took place at the Standard Chartered Bank, to repay a Even today, 40% of the popl,llation is unemployed, the further $5.5 billion through the year 2000, which, with inter­ educational system for the black population has largely col­ est payments, would entail approximately $1 billion per year. lapsed, and the direst poverty is everywhere. Yet the ANC The proposal was accepted quite positively, but the banks, is preparing behind the scenes to agree to the demands of the and particularly the American banks involved, insisted that IMF and the Anglo-American establishment to plunge the the ANC acknowledge the agreement. black population of South Africaiinto ruin, as is already the From 1994 until the year 2000, according to the ideas of case in other countries on the qontinent, for example, in President F.W. De Klerk and also Mandela, there is to be a Nigeria, Zimbabwe, Tanzania, Ujganda, and Zambia.

EIR May 21, 1993 International 39 Buthelezi, to acknowledge the agreements between the Na­ tional Party (De Klerk) and th� ANC (Mandela, Ramaphosa) and thus bring a "democratic , onstitution" safely to comple­ tion . On the conservative sid , a committee of former police and Army generals has been formed, in typical Boer fashion, that will seek, appropriate to their historical instinct, to bring together a broad front of Afri . aaners to form a separate state for whites. With the deterioration of the economic situation, these developments are mov�ng toward broader confronta­

tions that could very quickly t I rn into uncontrollable disinte- gration and bury the future of a new South Africa before it has come into existence . A new South Africa that i to fulfillthe hopes of its black population for freedom, justi , e, and the realization of such inalienable human rights as equality before the law, cannot be negotiated by means of dubious deals behind the scenes between the ANC and the Abglo-American establishment. The axioms of the apartheid state must be changed. That concerns not only the politica constitution, but also the eco­ l nomic order and the general g al of the state. A new South Africa has a mission for the African conti­ Nelson Mandela is callingJor South AJrica ' s reentry into the nent. Previously, the South African economy had a reservoir British Commonwealth . Doesn 't he remember that the British of technology, science, and irained specialists (in agricul­ created apartheid in the firstplace ? ture , medicine, engineering, jetc . ) that could be mobilized for the reconstruction of the tfrican countries of the north, The strategy of tension which have been ruined by lW years of IMF policy. The The uninterrupted violence that South Africa is experienc­ historic mission of a new Sout� Africa consists in challenging ing is being fomented to keep the decisive topic, the economic the power of the IMF for all 9f Africa and going over to the future and fore ign policy orientation of the new country , out side of those who are seeking a way out of the apocalypse of I of the negotiations, and to heat up confrontations between the continent, and therefore a e striving for the creation of a whites and blacks as well as within the population groups . new just world economic orde . The mission of a new South The murder of ANC leader Chris Hani on April 10, the Africa lies in the rapid buildup of infrastructure , the develop­ cold-blooded murder offive white hotel guests in East London ment of modem agriculture , and the industrialization of on May I, the professionally set ambush of a police bus in Africa. Soweto on May 5, in which four policemen were killed, as Only this orientation also offers the perspective for eco­ well as murders of white farmers in the countryside, are not nomic growth and the elimina ion of poverty in South Africa spontaneous actions, but directed intelligence operations that itself, which is the preconditioh for the success of any change utilize agent infiltration of all political camps . There are indi­ in the constitution. Finally, S�Ch an economic development cations that members of the British Special Intelligence Ser­ program and a Grand Design � r Africa offers the only realis­ vice have played a role, as well as former Soviet Spetsnaz tic chance for defining the identity of the new South Africa (special forces) members . The De Klerk government has up in such a way that all citizens an again find themselves in it to now refused to investigate the so-called third force which and overcome the existing ch�sm between white and black many believe is implicated in the killings, because it will then and between blacks. have to acknowledge the participation of at least parts of the Domestically, the system f itinerant mine workers must intelligence apparatus. That means that the same political be abolished, and the legal prJconditions must be created to power groups of the establishment that are seeking, with a allow the proceeds from minin to flowinto the development great display of propaganda, to guide the constitutional dis­ of the country . Neither the ANC nor the groups participating cussions in directions that are not dangerous to them, are ulti­ in the multiparty negotiation that are in opposition to the mately responsible for the escalation of violence in the ANC, such as the Inkatha or the Conservative Party , have country . placed these fundamental que tions on the agenda. As long as that does not happen, the hopes for freedom and justice Liberation from the apartheid system for all South Africans bound up with the negotiations will Great pressure from British circles is now being exerted remain di sappointed and bet ayed, and will lead the way on the chairman of the lnkatha Freedom Party , Mangosuthu further into chaos. l

40 International EIR May 21, 1993 I Thj ikistan andMg hanistan: Have two hotbeds of war merged into one? by M. Babur

M. Babur is one of Russia's most eminent orientalists, who population exodus from Tajikistan:! The Russians are fleeing has had over five decades experience in Central Asian af­ to Russia, and the Kirghiz living :in the Leninabad region fa irs. (now Khodzhent) and the Republi� of Badakhshan (part of Tajikistan) are fleeing toKyrgyzstap . According to the latest On the night of April 12, the former President of Tajikistan reports, there are already about 200�000 refugees from Tajik­ and long-serving First Secretary of its Communist Party , istan in Uzbekistan, including a large number of Tajiks trying Rakhmon Nabiyev, to whom the Supreme Soviet of Tajik­ to get to the Samarkand and Bukhara regions, where most of istan had awarded the unprecedented title of colonel-general the population are also Tajiks. OnlX recently, the Tajiks were the year before, died in obscure circumstances. demanding the return of these economically and culturally Two weeks earlier, the political and military leaders of important regions to their "historical motherland," i.e., the Popular Front of Tajikistan, Sangak Safarov and Fayzali Tajikistan. This was a source of great worry to the Uzbek Saidov, had been killed in a fierce shoot-out near the town authorities. of Kurgan-Tyube. March 31 was declared a day of mourning Now Tashkent is worried by the growing influxof Tajik throughout Tajikistan. The Moscow newspaper Nezavisi­ refugees into Uzbekistan itself. maya Gazeta's headline over a well-informed account of However, the most serious problem is undoubtedly the the killings ran: "The Popular Front of Tajikistan Has Been emigration of about 100,000 Tajiks:into neighboring Afghan­ Decapitated. " istan. Most of them have taken refuge in the border provinces The clash between the two leaders was preceded in early of Balkh, Konduz, Samangan, and Takhar, which are close March by the entry into the Tajik capital of Dushanbe of a to the southernbank of the Amud�'ya (Oxus) and Pyandzh large military force belonging to Fayzali Saidov. Having border rivers, and they are there upder duress. Mainly they surrounded Tajikistan's Ministry of the Interior with his are Tajiks from Garm and the Pamirs-followers of the Is­ tanks, Saidov presented Minister Yakub Salimov with an lamic Democratic Opposition tryipg to escape being killed ultimatum demanding "some leading post." He was made by the victorious army of the new government of Tajikistan, leader of the Bokhtar area in Khatlon Region, which had the forces of the People's Front tha� were until recently head­ recently been created by merging the two southern border ed by Sangak Safarov , and by the numerous bands of maraud­ regions of Kurgan-Tyube and Kulyab. At the end of the ers, some of whom got their weapQns from Afghanistan. month, the "Father of the Tajik Nation" and leader of the Power in Dushanbe now belongs to members of the Kul­ Popular Front's armed forces, Sangak Safarov , arrived at the yab-Leninabad clan, whose repres�ntatives ruled Tajikistan same place in order to stake out spheres of influence and for decades. They were deposed by the opposition in May implement his demand that Fayzali Saidov's private army be 1992, but returned to power in the autumn of the same year disbanded. The negotiations turned into a massive argument with the active materiel and military assistance of Uzbek­ that ended in the deaths of both leaders. The author of the istan. The clan is headed by the new president of the Supreme above-mentioned article in the Moscow newspaper was right Soviet, E. Rakhmonov, who hasteqed to express his gratitude to subtitle it: "More Bloodshed Now Certain." to I. Karimov, the President of Uzbekistan, by entitling him In the last two years alone, over 100,000 people have "Father of All the Tajiks." died as a result of the civil war in Tajikistan. Prominent politicians, public figures, and writers are murdered on the The refugee camps streets. At the end of 1992 the public prosecutor of Tajikistan, In the border provinces of northern Afghanistan just men­ Nurullo Khuvayduloyev, was assassinated. tioned, which are historically known as SouthernTurkestan , Between 1991 and 1993 there has also been a massive there are five large Tajik refugee camps. The situation in

EIR May 21, 1993 International 41 these camps varies. In the Balkh and Samangan camps, which are controlled by the National Islam Movement and Taj ikistan its leader General Dostum (an Uzbek), the refugees are not treated badly. There is relative order, as each day the inhabit­ ants of Mazar-e Sharif deliver 25,000 loaves of unleavened bread to the refugees, and the U. N. Commission for Refu­ gees has representatives in the town distributing food and financingthe construction of medical facilities. The refugees regularly receive information about the situation in Tajikistan and Uzbekistan. Things are considerably worse in the camps at Konduz and Takhar. These are controlled by fieldcommanders under Dostum's swornenemy Gulbuddin Hekmatyar, the leader of the "implacables." Hardly any food from the U.N. reaches these camps, and the people living in them receive no infor­ mation about their homeland. Moreover, the men in the camps are put through a tough military drill to form detachments of fighters, some of whom are infiltrated into Tajikistan in order to join the Islamic counterattack, and others used to swell the ranks of Hekmat­ yar's army as he prepares for another spiral in his battle for forever." power in Afghanistan. This statement is particul�rly ominous, given that the compromise agreement reacheU between the leaders of the New counteroffensive likely nine Mojahed organizations iniMarch 1993 to form a coali­ As for the situation in Tajikistan itself, in March and tion governmentheaded by Hekmatyar and with Burkhanud­ April 1993 it again became very complicated. The republic's din Rabbani as President, has broken down. The agreement leadership-President ofthe Supreme Soviet E. Rakhmonov was confirmed in Mecca and! Teheran, but Hekmatyar is and Prime Minister Abdumalik Abdullojanov-have issued categorically opposed to Akhmad Shakh Masud remaining repeated warnings that a massive counteroffensive is being as Minister of Defense, and is demanding the removal of prepared by the "Islamic Democratic" opposition, code­ General Dostum. named "Retribution." It is assumed that this will be launched Insofar as Rabbani and Akhmad Shakh Masud are Tajiks, by the detachments of fighters who have survived in the while Dostum and some of the dther commanders in the north Pamir Mountains and the borderlands, reinforced by "emi­ of the country are Uzbeks, one can say that the conflict is gn5" detachments hastily trained in the Afghan camps at Kon­ becoming increasingly ethnic ih nature. The religious factor duz and Takhar and loyal to Hekmatyar. Fighters are being is also coming into play. Hekmlttyaris leader of the Pushtuns trained particularly intensively in the Emam Saheb camp in and the fundamentalists. The HItter explains why he is sup­ Takhar Province on the southernbank of the Pyandzh. This porting the Islam opposition in Tajikistan and using violent camp and the whole area are fiercely controlled by Gen. methods in the republic, incIudling deploying Tajik fighters Abdul Latifa, one of Hekmatyar's henchmen. In order to trained in the Emam Saheb camp and others in Konduz and safeguard his military headquarters at Emam Saheb and the Takhar provinces. airfield next to it from possible artillery and especially air After fighting flaredup again in Kabul, the situation on attacks by General Dostum's forces, Gen. Abdul Latifa has the Afghan-Tajik border also deteriorated sharply. At the end grouped some of the refugee camps around them as a human of March and beginning of Aptil, hundreds of fighters tried shield. to cross the Amudar'ya and Pyabdzh rivers by night and force According to information received from the refugee their way into Tajikistan. The �order posts on the Tajik side camps and the U.N. Commission for Refugees office in of these rivers, which are staffed by Russians, came under Mazari-Sharif, small planes often land at Emam Saheb air­ artillery bombardment, and several were killed. On April 7, fieldbringing the latest weapons from Saudi Arabia and Iran Tajik fighters took ten Russiah border guards and officers for Abdul Latifa' s soldiers and especially for the detachments hostage. They were released only after the commanders of of fighters being trained there to be sent into Tajikistan. It the 20lst Russian Division stationed in Dushanbe and the is rather revealing that when asked what would happen in general headquarters of the border troops of the Russian Fed­ Tajikistan if the leadership there did not reach an agreement eration had presented the figHters with an ultimatum. On with the opposition and the fightersthe latter was preparing. April 9, afterthe territory prote

42 International EIR May 21, 1993 Russian Foreign Ministry sent a strongly worded note to the the east and northeast with Xinjiang, where the Chinese au­ Afghan governmentin Kabul. thorities have recently been extrem¢ly worried by the rise of Islamic fundamentalism among the: local populatiOn. More­ Diplomatic etTorts to solve the crisis over, some of the Badakhshan-XinjiJang (i.e., Tajik-Chinese) On April 8, Andrei Kozyrev, the foreign minister of the border has not yet been demarcated� Russian Federation, himself stopped off there en route from Clearly, then, the defeat of RaJehmon Nabiyev and the the Pakistani capital Islamabad. In March he had visited "Islamic Democratic" bloc in Tajikistan in 1992 dealt a seri­ Teheran. Both in Iran and Pakistan he was trying to negotiate ous blow to the long-term plans of t1!tefundamentalist leaders a peaceful settlement of the situation in the region, especially in Afghanistan and influential pol�tical circles in Iran and in Afghanistan and Tajikistan. He received the assurances he Pakistan. The new twist in the powdr struggle in Afghanistan was after, but it is well-known that the ruling groups in Iran and the "Operation Retribution" counterattack planned by and Pakistan have their own long-term interests in Tajikistan. the "Islamic Democratic" bloc in Tajikistan therefore not Early in 1992 sensational reports had appeared in the world only threaten to merge the Tajik and Afghan hotbeds into press to the effect that the President of Tajikistan at the time, one, but also to unleash a fundame�talist offensive through­ Rahmon Nabiyev, had secretly promised to supply Iran with out the Middle East and Central Asi�. The neighboring coun­ large quantities of enriched uranium produced in the super­ tries understand this, especially Uzpekistan. secret town of Chkhalovsk at a hyper-secret factory where enriched uranium was processed fromother republics in Cen­ Uzbekistan President warn$ of terrorism tralAsia. When Uzbekistan President I�lam Karimov appeared This and other, more important, questions were discussed before journalists of the Internation�lAs sociation of Foreign in June 1992 during a visit by Nabiyev to Teheran and Islam­ Correspondents accredited to the ¢IS on March 12, 1992, abad. An agreement was signed not only for Tajikistan to he said: "When the coup took placj:: in Tajikistan in May of receive credits from Iran, but also for a direct air link to be last year, when the civil war brok� out, when people were established between Teheran and Dushanbe, and for a rail­ burnt alive, women disembowele�, hands cut off, people way to be built linking Mashhad in northeast Iran to Herat, decapitated, and over 30,000 pe09le murdered in the most Mazar-e Sharif, Konduz, and Badakhshan. The plan was to barbaric fashion, no one asked wh was aiding and abetting lay a main line fropl Konduz to Pyandzh in Tajikistan, which it." Recently, he said, 100 Stingeri rockets had blown up in is linked by a line to Kurgan-Tyube, and to lay a mountain a ravine near Dushanbe, and somewhere else 400 tons of railway line from Feyzabad, the main town in the Afghan explosive had been discovered, evidently stockpiled for sub­ province of Badakhshan, to Khorog, the capital of the Ba­ versive purposes. A number of Mu�ahedin who were citizens dakhshan Republic in Tajikistan. of Afghanistan, Pakistan, and ot�er c,ountries were being charged in Tajikistan in connectioq with these offenses, said Badakhshan's strategic importance Karimov. He gave his analysis of;the situation in Afghani­ Transport was also high on the agenda during Nabiyev's stan in the spring of 1993, and copcluded: "Certain people visit to Islamabad. An agreement was reached to build a want Afghanistan to be a kind of srpoldering firefrom which highway as soon as possible from Gilgit and Chitral through they can pick embers and cast �m into the independent the so-called Bakhan Strip (Afghanistan) to Khorog, again, states of Central Asia, thus putting pressure on them. It is in the Badakhshan Republic. The latter, which until recently no secret that certain dark forces harbor those kinds of was known as the Mountainous Badakhshan Autonomous dreams ....Groups of terrorists i are being trained in Af­ Region of Tajikistan, is strategically extremely important. In ghanistan, Pakistan, and Iran to c� out subversive activity the firstinstance , most of its population are Ismailists, i.e., in our region." : religiously they are particularly close to Iran. Culturally and On March 13, 1993, Karimoy wrote to the Secretary ethnically, however, the inhabitants of the Pamirs are ex­ General of the United Nations, B�utros Boutros-Ghali, in­ tremely close to the inhabitants of Kashmir, and Kashmir, of forming him of the situation and sltressing that preparations course, is the main bone of contention between Pakistan and were being made for massive incursions across the Afghan­ India. Secondly, the inhabitants of the Pamirs and of Garm Tajik border and vicious acts of �rrorism in Central Asia form the basis of the "Islamic Democratic" opposition which generally. He insisted that a spec.al report on the situation was defeated last year in the struggle for power in Tajikistan. be submitted for discussion at a ses�ion of the Security Coun­ Most of the people in the camps in the Afghan provinces of cil. As a result of the continuing de�erioration in the situation Konduz and Takhar are Pamirians and Garmians, and it is in in Afghanistan and Tajikistan, a*d the attack on Russian these camps that Hekmatyar's men train their fighters to go forces stationed on the Afghan-Taj,k border, at the beginning into Tajikistan and organize attacks on the border posts of April many influential newspaMrs in Russia published the manned by Russians on the northernbanks of the Amudar'ya text of Karimov' s letter to the U. N. , and echoed his concern and Pyandzh. Thirdly, the Badakhshan Republic borders in that a huge theater of war was beiqgcreated in Central Asia.

EIR May 21, 1993 International 43 Helga Zepp-LaRouche anno�ces run fo r German chancellorpost ! by Our Wiesbaden Bureau

Helga Zepp-LaRouche, chairman of the new German party the United States, the civil rightsmovement and the political "Biirgerrechtsbewegung Solidaritat" (BBS), the Solidarity movement built by Lyndon LaRouche have taken the historic Civil Rights Movement, doesn't want to see the collapse of step of joining together to 6ght side-by-side for the inalien- Italy's political institutions repeated in Germany. But the able rights of all people. , wave of corruption scandals now sweeping Germany, includ­ Many well-known fig*es from the U.S. civil rights ing the resignation of Social Democratic Party Chairman movement, such as Rev. J,mes Bevel, Rev. Wade Watts, BjornEnghol m, makes the situation look all too similar. For and Joe Dickson, publishbr of the Birmingham World, years , Zepp-LaRouche has been warning that the federal Alabama's biggest and oldest African-American newspa­ government in Bonn would be digging its own grave if it per, made personal appeara�ces at the conference. Dickson passed up the opportunity which opened up in November commented later that the fact that the American civil rights 1989, and if it fails to implement the comprehensive Eurasian leaders acted as "midwife'! to the birth of the BBS, was infrastructure program which her husband Lyndon LaRouche of historic importance. Others who expressed personal had proposed back then. interest and happiness at this step included the Chinese That program, which envisaged Europe's reconstruction trade union leader Yue Wu,i who had supported the Chinese as emanating from the LaRouche Paris-Berlin-Vienna "Pro­ student movement at Tian�men Square in 1989 and who ductive Triangle," never even started to be realized. The is one of the six most wanted men in mainland China; consequences of that failure are the bloody war in former the Franciscan Father Superior Liu from Taiwan; and Yugoslavia and similar threatened developments in the for­ various representatives from African countries. The BBS's mer Soviet Union; mass unemployment, especially in the international advisory courlcil also includes many parlia­ eastern part of Germany; the collapse of production all over mentarians from eastern E�rope. the East; Germany being engulfed by the world depression; Since its founding, the ijBS has established 11 branches and now the unravelling of a German political class, which in the states of Saxony, Thuringia, Berlin, Bavaria, Baden­ has utterly failed to meet the challenges facing it. Wiirttemberg, Hesse, Rheibland-Palatinate, North Rhine­ Helga Zepp-LaRouche has said this many times before. Westphalia, Lower Saxony J Schleswig-Holstein, and Ham­ But in March 1993, when the steel crisis re-erupted with the burg. Many local groups Have also been formed. In paid announcement of new factory closings, she made the bold newspaper advertisements,1 leaflets, demonstrations, and step of announcing her readiness to challenge the Christian meetings, the BBS has beenlintervening to oppose the Serbi­ Democrat Helmut Kohl as chancellor candidate. So far, the an genocide in the Balkan$, to counter the growing anti­ next general elections are scheduled for 1994; but unlike in foreigner hysteria, and to push for a solution to the grave the United States, the date for elections can be changed by economic crisis. the parliament at any time, and in these turbulent times, anything can be expected. An international movement, too Just as the Indian freedqrn fighter Mahatma Gandhi and A new German party the American civil rights leakier Dr. Martin Luther King, Jr. Helga Zepp-LaRouche's party, the BBS, was founded emerged as moral authoritie$ in the struggle to end underde­ both an an international movement and as a federal German velopment, apartheid, and r�cial hatred, and to ensure free­ party on Nov. 22, 1992. More than 500 participants from dom, equal rights, and inaliienable rights for all people, so 25 countries gathered in Germany's Rheingau district for a today the names of Helga Zfpp-LaRouche, chairman of the conference of the international "Peace through Develop­ BBS, and her husband Lyn�on LaRouche are inextricably ment" coalition. The conference's theme: "A Thirty Years' bound up with the struggle fqra new and just world economic War, or a New and Just World Economic Order." In the order, which could enable aU people on this planet to enjoy course of two days of discussions about a strategy to halt the a life with dignity. worldwide crisis, participants found a workable answer: In "The name for peace is dbvelopment!" is the central idea

44 International EIR May 21, 1993 in all past and present activities of this international these developments by issuing a program for infrastructural movement: and economic development of the entire Eurasian continent. • In the 1970s, Lyndon LaRouche formulated the con­ The development push was to emanat� from the Paris-Berlin­ cept of an International Development Bank, an idea which Vienna "Productive Triangle," the , area where Europe's found great acceptance among the nations of the Non­ greatest productive potential is concentrated, which could Aligned Movement. Shortly afterwards, the movement function as a "locomotive" to pull thq entire world economy I raised the demand for a comprehensive moratorium on inter­ out of the depths of depression. national debt, an action which would smooth the way for a new, viable currency system. In the early 1980s, this call Ready to become chancellor I. was taken up by leading political figuresin the Third World. For many reasons-a major one being strong and quite • Special concern about the life, health, and develop­ destructive Anglo-American and French opposition to any ment potential of the younger generation was at the forefront development of eastern Europe und¢r German auspices­ ofthe "War on Drugs" against the internationalcartels which the Productive Triangle was not implemented. And no one controlled the cultivation, production, and distribution of deplores the resulting mess more thaniMrs. Zepp-LaRouche. mind-altering substances. On the same grounds, LaRouche In the statement she made in March a�nouncing her readiness was the firstto warnof the catastrophic consequences of the to take over the Bonn government ($ince it seems unlikely deadly AIDS epidemic, and made efforts to give it serious that these people will ever move to th, actual German capital medical attention, especially in terms oflarge-scale, interna­ Berlin), she wrote: tional research programs for the development of a cure. "The decision to shut down the steelmaking district of • The movement's greatest impact on the course of Rheinhausen is the last straw. If ther� is not a drastic change world events over the past decade came as a result of in the current direction of economic :policy, we are headed LaRouche's concept of a beam weapon defense system for toward the greatest economic catastrd,phein history, not only repulsing and destroying nuclear missiles, which for the first in Germany, but throughout Europe and the world. time would make defense against such missiles less expen­ "The decision to junk Rheinhausen, one of the most mod­ sive than the missiles themselves. President Ronald Reagan em steel works with an ideal locationJ is not the result of sup­ announced this concept on March 23, 1983, calling it the posed overproduction for the world market, but rather is the Strategic Defense Initiative (SOl), declaring it to be U.S. expression of the political, economicj and moral bankruptcy policy, and proposing at the same time that Moscow collabo­ of the major parties and institutions in our country. . . . rate in constructing such a system. LaRouche, who at the "Industrial leaders ' decision to transfer production facili­ request of the U.S. government had been holding private ties into so-called low-wage countries, betrays the mentality discussions with the Soviet side for almost a year, beginning of an accountant who has no sense whlitever of actual produc­ in early 1982, emphasized not only the obvious military ben­ tion. In the short term, you can perhaps shore up profitmar­ efits of the SOl, but also especially the immense spin-off gins by exploiting Chinese coolie laQor at starvation wages; effects which would occur in the civilian economy if these but in reality such a destruction of high-skilled jobs leads to "new physical principles" were applied there. The productiv­ the collapse of the entire economy. ity of the entire world economy could be thereby increased "And if the nations of the East �e forced to fulfill the by orders of magnitude. demands of the International Monet$ry Fund and must ser­ • LaRouche's SOl proposal was rejected by the Soviet vice the old communist debt, no o�e should be surprised nomenklatura, which responded by launching an unparal­ when they attempt to sell steel to the' West at dumping pric­ leled internationaldefamation campaign against LaRouche, es-steel which is cheap because Of the starvation wages and then demanded that LaRouche be "put out of circulation" being paid in the East. as quickly as possible, which later resulted in his politically "Looking around the globe, do we have too much indus­ motivated prosecution, conviction, and imprisonment in Jan­ trial and agricultural capacity? On the contrary, we have a uary 1989. The Soviet rejection of the SOl in 1983 resulted in pitiful worldwide shortage ....Fot 20 years I have been the collapse six years later of the entire communist-controlled fighting in Germany and in many other countries fora just economic sphere in central and easternEurope , including the world economic order .... Soviet Union itself. Already back in 1982, LaRouche had "The great moment of 1989, which could have become forecast that the Soviet side would negate the civilian eco­ a punctum sa liens , a turning pointin bistory, was shamefully nomic aspects of his proposal, and would move to concen­ missed, because the program I had proposed was rejected. trate exclusively on military SOl research. . . . Leading parties and institutions clid not grasp the oppor­ • The collapse of the Soviet economy offered a historic tunity of 1989, and instead stuck theit heads in the sand. . . . opportunity for freedomin central and easternEurope , along That is why I am running for the office of chancellor in with the reunificationof Germany, with Berlin as its capital. the upcoming parliamentary electioqs planned to be held in In the autumn of 1989, LaRouche, from prison, reacted to 1994."

EIR May 21, 1993 International 45 Sweden's Schori wants 'U.NlI new order' over Bosnian dead bddies by Mark Burdman and VIf Sandmark

i Never one to eschew deals made over the dead bodies of modelled on that proposed! by British Prime Minister John others, former Swedish deputy foreign minister Pierre Schori Major for the Kurds, after $e Persian Gulf war against Iraq. has launched a propaganda campaign to promote the idea (Indeed, during May, the 13ritish and French governments that the slaughter in Bosnia could be a good thing, since it have been successfully lo�ying within the V.N. Security could bring about a "new peace order" run by the Vnited Council, for the establish�nt of such "zones" for the Bos­ Nations, in which Sweden could play a central defining role. nians.) Toward this end, Schori, who under the late Olof Palme Schori wrote that "afteri the end of the Cold War, it may effectively ran Swedish foreign policy on a day-to-day basis, be possible to form a new l peace order on the basis of the and is a close collaborator of Henry Kissinger and former V.N. statutes." He praised IV.N.General Secretary Boutros British Foreign Secretary Lord Carrington, insists that no Boutros-Ghali's "Agenda f�r Peace," which outlines an ex­ military action be taken against Serbia,that a V.N. "protec­ panded global role for t�e V.N., as "innovative," and torate" be established over Bosnia, and that the international claimed that the document! was essentially inspired by the "peace movement" be revitalized around the perspective of original concept of "V.N. peacekeeping forces" developed "strengthening the Vnited Nations." in the 1950s by V.N. Secre$ry General Dag Hammarskjold, Such arguments were the substance of an article that who was also a Swede. "Sw�den, in its foreign policy, should Schori wrote for the Swedish social democratic weekly AiP, follow the Hammarskjold-Ralme line," he stressed. in its April 30 issue. A condensed version of the article was I published earlier, in the Swedish daily Dagens Nyheter on Allegiance to Carrington and the U.N. April 26. Copies of the AiP piece were circulated at a May 6 Displaying his allegiaqces, Schori elaborately praised gathering of the Swedish Social Democracy's foreign policy Peter Lord Carrington, th¢ former European Community institution, the Olof Palme International Center. The article chief "mediator" for the yugoslav crisis, contrasting Carring­ was entitled "Shooting in Sarajevo: The Revenge of History ton's views favorably to tho$eof the Germans, whom Schori or the Beginning of a New Peace Order?" The words "shoot­ accused of having brought about premature internationalrec­ ing in Sarajevo" were clearly understood by Swedes to refer ognition of Croatia and Slotenia. Carrington, Schori wrote, to the assassination of Austria's Archduke Ferdinand in always understood the nee4 for "gradual negotiations" that 1914, the which event triggered World War I. would lay the basis for a '�total solution" of the Yugoslav In both his written piece and his public statements, Schori issue. "The English Lord is �ti1l missed by democratic circles postured as a great sympathizer of the suffering Bosnians, living in former Yugoslaviaj,"Scho ri slobbered. insisting that Bosnia, as "a member of the V.N. family, has Schori 's fawning over darringtonpoints to one aspect of the right to be helped, just like Kuwait." He said that Bosnia the "hidden agenda" in his propagandizing. There are three had "the right to protection from the Vnited Nations" against essential components of tlle Swedish oligarchy's "hidden what he referred to as "Croatian-Serbian" attacks. However, agenda" respecting the Boslitiaissue . that "right" does not entail liftingthe arms embargo on Bosnia It is undoubtedly more than coincidence that the first or outside intervention against Serbia, since, according to version of Schori's argum,nt, in its abbreviated April 26 Schori, "it is not possible to solve the situation militarily," Dagens Nyheter form, was �irculated one day after the con­ and "those who say, 'Bomb the Serbs,' are wrong." clusion ofthe April 22-25 a'nual gathering of the Bilderberg Instead, what should be done, in his view, is create "pro­ Society, which took place iIiVoulia gmeni, a suburb south of tected zones" for the Bosnians, which would be defended Athens, in Greece. Carrin$on presided over this meeting, by a V.N.-sanctioned international force that would include and the notorious Lord DavJd Owen, who replaced Carring­ Swedish participation. These "protected zones" would be a ton as EC mediator, also attended. During the proceedings, transitional measure, on the way to "a true V. N. protectorate Carrington loudly argued a$ainst the lifting of the arms em­ over Bosnia-Hercegovina for a period of five years." Schori bargo against the Bosnian. and against V.S.-led military noted that the "protected zones" concept was, in essence, action against Serbia. Indeed, it was at the April 22-25 meet-

46 International EIR May 21, 1993 ing, that the agenda was worked out for the next weekend's May 2-3 Owen-Vance-led "Yugoslav conference" meeting, led by Owen and U.N. envoy Cyrus Vance, who worked out a Neville Chamberlain-modelled appeasement deal with the Serbs. The May 2-3 meeting was held at the same re sort hotel in Vouliagmeni where the Bilderberg meeting had just taken place. Only two prime ministers attended the Bilderberg meet­ ing. One was Greek Prime Minister Constantin Mitsotakis. The other was Carl Bildt, representing Sweden. Although Bildt is from the Moderate Party , for which the Social Demo­ crats are the opposition, his views on Bosnia are identical, in substance, to those of the Social Democrats . From this standpoint, Schori 's propaganda blitz should be seen as building an international Scandinavian flank for Carrington and Vance-Owen, and against a U.S.-led military intervention into Bosnia. But there is a second level, an "agenda within the agenda" in all this, namely that Sweden, together with other Scandina­ vian countries, is hoping to have the political influence of a virtual world power, through the agency of a strengthened U.N. That has been the intense preoccupation of the majority faction of the Scandinavian oligarchy , whether social demo­ cratic or otherwise , since the end of the Second World War. Since 1994 will also be the year It is noteworthy that the two first secretaries general of the conference on "Population and ' in Cairo, it is U.N. were Trygvie Lie of Norway and Dag Hammarskjold obvious where matters are heading, w the U.N. being the of Sweden. coordinating body for global malthusI ian policies, and the We see thi!! tendency prevailing to the present day . The Scandinavians playing a key role therein. I Scandinavian nations pay a disproportionate share of the From the Norwegian side, an earlier U.N. commission overall funding for U.N. operations, including, it is esti­ on "environment and development," Jhich formed the basis mated, 80% of the funding for U. N. family planning and for the 1992 "Earth Summit" in Rio, as headed by Norwe­ population control programs. Leading Swedes have positions gian Prime Minister Gro-Harlem Br ndtland. Noteworthy at the various "chokepoints" of the U.N. global structure . too, is that the announced replacemen� for Cyrus Vance, as For example, the new U.N. deputy secretary general respon­ the U.N. partner of Britain's Lord 0 en in future Balkans I sible for U.N. relief aid operations, is Jan Eliasson. Eliasson diplomacy, is former Norwegian fore 'gn minister Thorvald is formerly head of the political department of the Swedish Stoltenberg. Foreign Ministry , and is seen by informed Swedes as a clone By such activities, the Swedes and �orwegians can oper­ of Schori . Eliasson replaced the Sadruddin Aga Khan in ate as "Trojan horses" for British worl1-federalist policy, but this post; whatever the latter's failings, he did oppose the they also achieve a global influence way out of proportion draconian post-Gulf war sanctions regime against Iraq , and for countries with a combined population of less than 13 has more recently attacked the international community for million . failing to act against Serbian genocide. Eliasson's view is ' that the Gulf war was a positive, historical turning pointin To neutralize the LaRouche i fluence the building of a U.N.-ce ntered "new world order." A third aspect of the Schori offensi�e , is that the Swedish Swedish efforts are also encapsulated in a commission on elites are frantic to contain the influencd of the political move­ "global order and strengthening the United Nations system," ment of Lyndon LaRouche within S eden . By mid-April, which is due to issue its findingsduring 1994 . That commis­ LaRouche associates in Sweden were beginning to get an sion is co-chaired by former Swedish Prime Minister lngvar unusual amount of attention, because of their months of work Carlsson and former British Commonwealth Secretary Gen­ in mobilizing for solidarity with the Bosnians. On April 20, eral Sir Shridath ("Sonny") Ramphal. In public statements collaborators of the LaRouche effort ere featured on Swed­ made during the last weeks of 1992, Carlsson called for the ish television, giving interviews on th occasion of Bosnian U.N. to strengthen its presence in various parts of the world, President Alija lzetbegovic's trip to S ockholm. The reason and asserted that "the U.N, polity must go on the Hammar­ this happened, is that the LaRouche-a sociated solidarity or­ skjold-Palme line." ganization was the only one to come o�t and demonstrate for

EIR May 21, 1993 International 47 Bosnia when Izetbegovic arrived. Soon thereafter, letters began to appear in Swedish news­ Interview: Yves Dpbois papers-obviously not in a spontaneous way--<:omplaining that "the LaRouche sect" was the only group in Sweden vocally organizing on behalf of Bosnia. These letters warned that the vacuum must be filled by others; otherwise, the LaRouche-associated European Labor Party could achieve considerable political influence, given the fact that many Swedes sympathize with the plight of the Bosnians. From the first week of April, one can date an intense Swedish social democratic campaign to counter, and if possible shut down, Alsace-Sarajevo relief efforts of LaRouche associates in favor of solidarity with the Bosnians. convoy for�es a breach The other side of this coin, is that Schori, in his article and May 6 speech, promoted the idea of a new burst of "peace On March I. the convoy of trucks belonging to the movement" and Socialist International activity, around the Coordination Alsace-Sarajevo returned with great fa nfare Bosnia issue. This, undoubtedly, was to convey the impres­ in front of the Council of Europe headquarters in Stras­ sion that the vacuum was being filled. bourg. France. The scene Was one of joyous reunions of He boasted about his own links to the "Praxis" move­ the truckers with their fa tnilies and friends. who had ment, a movement of self-professed "democratic dissidents" fo llowed. not without grav� concern. this "mad project" that grew up during the Tito era. "Praxis" operatives have of bringing solidarityfr om �he entire region of Alsace into been key in building up the political-psychological climate the heart of horror-Saraje,vo. What a road was traveled for war in former Yugoslavia. (See "The Tavistock Psychia­ in such a short time! trists Behind the Rape of Bosnia," EIR . Feb. 12, 1993.) In November 1992. seW!ralfr iends got together in a Schori also boasted about his ties to the social democratic cafe to conceive the prokct. On Dec. 17. 1992 . the movements in both Slovenia (where he traveled during Eas­ demonstration of the Coof.dination Alsace-Sarajevo was ter) and Croatia (whose head, Branco Horvath, visited Stock­ joined by personnel from fhe Council of Europe to de­ holm recently), claiming that these movements were instru­ nounce the complicity of the United Nations. institutions. mental in shaping the proposals for U.N.-managed and governments with the g�nocide taking place in Bosnia. "protected zones" for Bosnia. On Jan. 17. 1993. Alsatitlns brought nearly 6 million He further wrote: "For a couple of years, we have sup­ francs [roughly $1 ./3 milli�nl to mayors' offi ces through­ ported the political and trade union resistance against nation­ out Alsace in order to fin�nce the Coordination project. alism and war, developed by the Croatian-American socialist Doubts and difficulties solin fo llowed. But on Feb. 17. Bogdan Denitch." This is directly germane to the anti­ the trucks made their rend�zvous in front of the Council LaRouche operation: Denitch had been a close collaborator of Europe. exactly two mo�ths after the demonstration­ for years of the League for Industrial Democracy's Arch and thence departed fo r StJrajevo. Puddington, the latter the mentor of Dennis King, the number Catherine Brannan of the Schiller Institute. which sup­ one author of slanders against LaRouche in the United States. ported the launching of thtt Coordination. met with Yves Moreover, Schori himself collaborated with the U.S. Anti­ Dubois. editor-in-chief of t�e France 3 regional tel�vision Defamation League and communist intelligence services to and president of Coordinatiqn Alsace-Sarajevo. and provid­ spread the lies that LaRouche and his Swedish associates ed the fo llowing interview from Strasbourg. were responsible for Olof Palme's murder in 1986. I Among this complex of allies, Schori cited the interna­ Q: Can you tell us your refl¢tionsand feelings on this "mis­ tional "peace movement." He and his British and Scandina­ sion impossible," now that it's completed? vian co-thinkers hope to mobilize a new such movement, on Dubois: What we hope to !achieve by sending the largest the scale of the Vietnam War-era youth and student move­ convoy ever organized to Sarajevo rests on a grand idea, ments, against any outside military intervention to stop the without any doubt "utopian" on several levels. I want to Serbs, against U.S.-led moves into Bosnia, and for the Unit­ insist on the fact that in the first place, we wanted to make a ed Nations. However, it is very doubtful that a mass base can demonstration "on the groupd" to say that we, citizens of now be emotionally catalyzed around such activity, since Europe, do not accept what is going on in Sarajevo. One real sympathy for the Bosnian people remains strong among hundred and forty people traveling in 64 vehicles-we were Swedes, and the growing Balkan refugee population, and no longer content to go watch with our hands in our pockets. since the U.N. has already been significantly discredited by Therefore, we brought food land medicines, 350 tons in all. its Serbia-appeasing policies in former Yugoslavia. But this was only food addec;lto the moral support. The aim

48 International EIR May 21, 1993 of this operation was to make an impression on the Serbian Europe. We have to do some "lobbting." We have to put extremists through this demonstration of a rejection of vio­ moral pressure on elected officials,: on all those in deci­ lence by so many ordinary citizens, and to force Unprofor sionmaking positions, even on business leaders. At a first [the U.N. Protection Forces] not to remain insensitive to such pass, we should think through an ac�ounting of each of the a convoy. The trip of such an important convoy was intended sectors, each aspect of daily life in • city. But we have to to serve as a dramatization, to show the unacceptable side of expect a partnership over the long te�. This is not a question this situation, and to force open a breach, the firstopen road of two weeks of emotion and then-fini.We must no longer to Sarajevo. act on the emotional spur of the moment, but rather findout how to work over the long term. I Q: Do you think you succeeded? One small example will give yo� a sense: One member Dubois: We only partially succeeded. As far as the of the convoy, rather than leave his foreign exchange with organization of such an important convoy and the direct his host family for the night, decide4 to buy several shares distribution of packages to the population goes, everything in the business belonging to the fatner of that family-we went quite well. In Sarajevo, we also succeeded in saying have to be thinking of expanding this �ype of procedure. what we had to say personally to the citizens of the capital, thanks to the press conference organized for us Q: How did other members of the cpnvoy respond to their by the town. We explained, and this was transmitted by experience? ! Bosnian television, that we were there to defend the Dubois: There are people who partfcipated in the convoy "spirit of Sarajevo"; the city-symbol of multicultural, and who want to go back to S�evo with the trucks. multireligious life, and of harmony between different What was possible with a large convoy, one time, would components of this nation that used to live in peace. not be a second. It is clear that ttte Serbian extremists On the other hand, we were not successful in intimidating will never let us go a second time.! As for the possibility the Serbian militias! Drunken madmen fingering their trig­ of sending smaller convoys, this dOj:!s not cohere with the gers. They robbed six of our trucks on behalf of the "Serbian original idea of the Coordination ' Alsace-Sarajevo. We Red Cross" as they jokingly liked to call it. On the return have always said that we did not w�nt to create one more route, they explicitly showed their anger over our televised humanitarian association. i interventions and the fact that we had succeeded in bringing Again, I think it's important npt to simply act as a in rolls of newsprint for the only newspaper in town, Oslobo­ function of personal emotions. �hat is needed is for denje . [The U.N. High Commission for Refugees had been prestigious groups to take decisions� not of principles but refusing to allow paper in, because it was not considered of action. It can be done from Alsacie. In the same manner "humanitarian aid"-ed.] As for Unprofor, we did not suc­ that concrete actions concerning �ansportation followed ceed in convincing it to open the breach with us. We received the accords passed by our German �nd Swiss partners, we absolutely no official help from it. It is clear that they had can envisage common actions with Sarajevo. The efficien­ received orders to "do nothing." This has been confirmed cy and know-how we showed in building the universal again with what we have just seen in Srebrenica. exposition at Seville . . . we should be able to mobilize to establish joint research program$ with the universities Q: What would be effective in bringing the barbarism in in Sarajevo. The university studentsi from Sarajevo should former Yugoslavia to an end, and to the foreseeable conse­ be able to come here and any im�diment should cause quences it would have on the explosive situation in the coun­ an diplomatic scandal and provoke I a major mobilization. tries of the former Soviet Union? The initiative of Strasbourg Mayo� Catherine Trautmann Dubois: What should we do? It must be understood that makes good sense. She is attempting to mobilize the Euro­ Sarajevo is not in ruins (contrary to what I expected). It is cities network in favor of recons�cting Sarajevo. There painfully heartbreaking to see the blackened buildings, with are already favorable responses a$d it is possible they the inside stories burnedout , but the buildings are standings. could organize a conference of mayprs of major European Even blackened, peppered with holes, the town is standing. cities in Sarajevo. That would be �ore important than all And especially the people are standing in every sense of the the foodstuffs in the world. word, although they are living on tenuous humanitarian aid. They are fighting to survive-but more than that, they are Q: There is much speculation about Jl military intervention. getting organized for the long term. They are letting it be Dubois: A military intervention m�s no sense unless there known that they will not be worndown by a war of attrition. is a viable long-term policy which do¢s not rely on the "parti­ They are forcing the Serbian extremists to act out in the open tion" of Bosnia. The international an4 moral right ofthe state by their composure. If the Serbians want to take the city, of Bosnia-Hercegovina is acknowled*ed. It is an independent they will be forced to walk over their bodies. state with its own borders. There can 1>eno solution by means I think, now, we have to act here, wherever we are in of ethnically based partitioning.

EIR May 21, 1993 International 49 Eyewitness to terror in Croatia I The Croatians and Bosniansar e maintainingafi ghtingsp dit qfho pe. in the fa ce qfSerbia s systematic policy qfterror. Lynne Speed reports.

The Schiller Institute's Lynne Speed traveled to Croatia with beautiful gardens. We walke4 around all the grounds, and Rev. James Bevel, Lyndon LaRouche's vice-presidential saw where the indoor hot spdngs had been. The Serbs had running mate in 1992 , on Feb. 13-/7 to get a first-hand look parked tanks across the road at).d they shelled the place every at the devastation both in Croatia and in Bosnia, and to day for a week, to make sure lhat all the equipment, all the talk with those struggling to bring peace to the region. The pools, were destroyed. We m�t a family of seven who had fo llowing is edited from a verbal report she gave to Schiller been living in their basement for six months, because the Institute members in Leesburg, Virginia on Feb. 26, 1993 . roof had collapsed. Children v}ere playing in the rubble. Then we continued on to iPakrac, which was a slightly We spent about four days in Croatia and met with a number larger city-about 20,000--�ichis right on the border be­ of people there, including the Mothers for Peace and leaders tween the pink zone and the �ray zone. We came up to a of the Catholic Church, and we interviewed a Bosnian wom­ little roadblock manned by the Croatian police. The Croatian an who had been raped. Despite the real horrors that people military is not allowed to be in this area, because the U.N. have been through, the morale of the population was ex­ is supervising it. The Croatian k>olice told us, "You shouldn't tremely high, and that was something that was very, very go in that area, up that hill." they said, "Do you see those impressive. We were entirely in Croatia, although we did two guys that are walking aro�nd? Those are Chetniks, and speak with a member of the Bosnian governmentand a mem­ they've been up there all mo�ing. We don't know whether ber of the Bosnian relief forces. they've mined the road, or whtther they have machine guns, Croatia is currently divided so that a third of it is occupied or what they're going to do, soiwe would advise you to stop." by the Serbians, one-fifth is made up of buffer zones for Now, this is an area which is iacknowledged to be Croatian which the United Nations nominally has oversight: They call territory, which is supposedly �nder the United Nations man­ these "pink zones" and "gray zones." In the pink zones, the date, where the Serbian forces! are free to runamok . U.N. is supposedly in charge, but in fact, exercises absolute­ There was a church, whe.e we had stopped, where the ly no authority, and sits by idly while the Chetnik forces images of Christ, the eyes, l1ad been shot out-for target [Serbian irregulars] do whatever they please. practice. The eyes, the nose, the mouth; Christ, the Holy When we got there, we took a tour about 90 kilometers Family, the Virgin Mary, the atchangels, all the holy images. or so outside of Zagreb, to two cities-Lipik and Pakrac. This is very important, becaus¢ one of the myths in the press, Lipik is a town which had about 5,OOO--a very beautiful which many Americans believ�, is that this is a religious war, rural village. As you drive out, there are houses on either that the Serbs are defending Ohristianity against the Islamic side of the roadway. You notice that everyhouse is demol­ hordes. A monsignor in Zagteb, who is very involved in ished. As you come closer to the center of town, you see relief programs in Slovenia, Ctoatia, and Bosnia-Hercegovi­ every singlehouse on either side of the road--onehouse right na, showed us how absurd this Iwas. He emphasized that most after another-is totally, totally destroyed--every house, Serbians are not Christians. In !most of Serbia, 70-75% of the every church, every school, every kindergarten. The grave­ Serbians had no religious insttllJction; in some areas this fig­ yard was overrun by tanks so that every single gravestone ure is 95%. They had never beFn in a church; they had never was destroyed. Most of this destruction was done after the been baptized. This is in marked contrast to the Croatian village was evacuated. This is a policy of wanton destruction Catholics-95% of the popula.ion regularly attended church, of cities, so that they can never be renewed. even under communism, when it was expressly disapproved Lipik is where you have the famous white stallions, the of. If Christmas came on a Fril,tay, the schools would remain Lipizzaners. There also is a very famous hospital, which was open. The Catholics would organize to have an early morning a center for women's diseases, and a rehabilitation-convales­ or late evening mass, and the majority of people, outside of cent home; it was a resort area, where people who were the party hacks, always went t� church. The Islamic popula­ recovering from serious illnesses could come, and there were tion as well would regularly attend services. Not true with

50 International EIR May 21, 1993 the Serbians. The way the atrocities are being carried out is back in their homes; they're moving. people someplace else. satanic: There are more than 500 Catholic churches that have There are 2 million refugees throughput Europe; 800,000 are been bulldozed, again, most of them after the cities have in Croatia and Slovenia. One of tht) towns that we visited, fallen, as have the cemeteries. which has 20,000 people, also has �O,OOO refugees. In Za­ We talked at length with a medical doctor, who has con­ greb, a city of 1 million, approximately 600,000 refugees are ducted a number of social actions throughout Croatia and there or passing through there. Bosnia-Hercegovina. When Dubrovnik was under siege, The rapes are really uncountabl,. There was one report there was an attempt to evacuate all the women and children; that gave the number of 10,000 Croatian Catholic women he made the point that if they left, then the morale of the who had been raped, the youngest one being 7 and the oldest fighting forces would go to rock bottom, and they wouldn't woman being 70. And there are no areas which are really safe: be able to resist for very long. So he organized the women If you look at the two-thirds of the I map that is supposedly and children to stay with their husbands and sons, which controlled by Croatia, it is all within 30 miles of Serbian­ allowed the resistance to go for much longer. In Vukovar, occupied territory. We had had a plan to go to Karlovac, which has become a national symbol of resistance, he did which had been peaceful for abou� a year, where we had something which very much shocked the Serbs, who expect­ wanted to see how the rebuilding �s going. However, we ed Vukovar to fall very rapidly, rather than the long period learnedthat the Serbians had started!heav ily shelling Karlo­ of resistance. Many of the people of Vukovar lived for the vac again. When we got to the m.ternity hospital on our last three or four months in their basements. Right after the second day in Zagreb, the doctor told us that their newest heavy shelling, during which people had been unable to come case of rape had been a 13-year-ol� girl in Karlovac, who out of their basements for a week or two, he would go to the couldn't even walk, because the Serbs had broken her pelvis. center of town and organize concerts of Mozart, blaring out as a message to the Serbs, that the will of the population had Geopolitical perfidy not been broken. He did this in Dubrovnik as well. There's a real recognition that the United States has play­ ed a key role in manipulating and allowing this to happen. Targeted terror Virtually everybody that we met w�� brought up the refer­ He said we have to be very clear on what's going on: The ence to James Baker's trip there in �une 1991, when he said Serbians don't have a policy of rape as a sexual assault. the important thing is a unified Yugoslavia. The monsignor What tp.eSerbs have perfected is the maximum amount of told us a story: When he had been at a bishops' conference psychological terror. If they go to a town of 50,000 people, and then went to an interview with the State Department in they don't shoot everyone, because there would be an inter­ November 1991, and Cardinal Kuharic from Zagreb met with national reaction. What they did, is they went in with targeted Ralph Johnson, who was the State Department expert on the terror operations, beginning with the men, not with the wom­ Balkans. The cardinal told him, "All we want is recognition. " en. One of the firstthings they did in villages in Croatia and And Johnson got very nasty, and sai�, "No! We never intend Bosnia was to line up all the men between the ages of 18 and to recognize Croatia because there are legitimate complaints 40-anybody that was able to have a family-and they would and problems with suppression of ethnic minorities." Later have Serbian women cut off the genitals of these men. Many in the conversation, the monsignor a�ked Johnson about San­ of these men were then killed. jak in southern Serbia, which is 80% Muslim, where it is In Biiko, in eastern Bosnia, there were 34,000 people, well-known that the Muslims were very poorly treated. John­ primarily Muslim. The Serbian forces went in, they took son had never heard of Sanjak! every single man between the age of 18 and 35, they inflicted Quite independently of what Lyndon and Helga these mutilations, and then they killed them. Then they put LaRouche have been emphasizing, people who are not famil­ the older men into concentration camps. All the girls between iar with their analysis stressed how it is crucial for people to the ages of 15 and 40-0fchildbearing age-were put into know that this is a geopolitical war. People we talked to bordellos, where they were systematically raped for two to emphasized that the cause of the �ar does not come from three months. The older women and younger children were within the Balkans, and the fact that �tconti nues is not coming put into concentration camps, as well. After two or three from this area. , months, they would let the raped women out and the refugee The woman whom I interviewed, who had been raped, agencies then come in and take the women away. was originally from Gorazde, which has been in the press be­ So, the policy was to destroy an area, leave everybody cause it's been under siege, and she, fledto Zagreb when she homeless, leave everybody without any type of family struc­ discovered she was pregnant. She and her husband were man­ ture, but without killing everyone. And then the relief agen­ agers of a small business, together with two of their Serbian cies, the United Nations and so on, are acting in collusion neighbors. She said that she had live4 with them for 20 years as with the ethnic cleansing, because they come in and clear the "brothers"; that's how she regarded them. These two Serbian area. They don't say that these people have the right to be neighbors-maybe under compulsion, it's hard to say-who

EIR May 21, 1993 International 51 had joined the Serbian militias a bit earlier came with 10 men and particularly among people from the church, the relief to rape her. They raped her for several hours, and she finally agencies, and the Bosnian ! government. Rebuilding is escaped by saying that she had togo to the bathroom and jump­ going on with virtually no re$ources. In Osijek, in eastern ing out of the second story window and running through the Croatia only a kilometer from Chetnik outposts, the center woods in the middle of the night. She finally arrived at the of the city, which was 50% destroyed by shelling, has village where her mother-in-law lived, and had never told her been almost entirely rebuilt lin nine months. They were mother-in-law or any family members what had occurred. Ac­ very hopeful and encouraged by the fact that we were cording to her understanding of Muslim law, once she was there. Reverend Bevel made Ii proposal about some social defiled, she could never have her husband look on her again. actions that we might be able to take in the area to one She said she realized her marriage was over the moment she of the church officials, and at first, he said, "This is all was raped, and only hoped to be able to see her lO-year-old wonderful, but it's too late. I'm happy for your concern, daughter again, one day. So you think about how this system­ but you should have come Here a year ago." Then, at a atic policy totally destroys the family. certain point, his eyes started tlwinkling, and he said, "Well, Many of the women who escape from these rape camps you have really great faith to think that something can be reported that the Serbian soldiers who came in to rape them, done. And maybe God has sent this Jim Bevel here, with said, "I don't want to do this, but if I don't do this, I'll be these wild proposals to salvage this situation." There was killed." So you're not just talking about some madmen, but that degree of optimism that We found everywhere: That is you have a policy of total terror. what the enemy is trying to wipe out, any vestige of Christian I wanted to stress again the optimism that people have , civilization, human civilization from the area.

house. I had togo . I was terribly frightened,and I did not expect the thing that would happen later. I knew that my Victim of geopolitics resistance would have endangered the lives of my family. When we entered the hOlilse, he asked for money, tells her story jewels, and other precious things. Everything in the house was at his disposition. He asked me where the men were. Rev. James Bevel was given thefollowing written account I did not answer. He ordered my to take off my clothes. I by a 16-year-oldBosnian during his trip with Lynne Speed was terribly frightened; I took offmy clothes in silence. I to Croatia. felt like I was dying. I closed my eyes. I could not watch him. He punched me, and I feU down. He lay on me; then Afterthe attack to my village, I was the eyewitness of the he did it. I was crying, screaming, bleeding-I was a massacre of civilians, which was the biggest tragedy I virgin. He ordered me to stand up. I wanted to gather my have ever seen before. I did not know that something even clothes to cover my nakednes$ and my desecrated body, worse than death awaited me. My sister bore a baby in a but I was not even allowed to touch it. He ordered me to basement where we were hiding during the mortar shell stand and wait. He warnedme ,to be careful of what I was attack to the village. After the fall of [my village] , and doing, because the destiny of my family depended on me. when Chetniks entered the village , I saw dead children He leftthe house and invited two other Chetniks to enter lying near the house, aged between 3 and 8. I saw a the house. I cried. These two men did the same thing as destroyed mosque, and men taken away. he had done before. I did not!feel anything, anymore. I Some renowned persons were abducted from a col­ did not notice when they leftthe house and for how long umn, and then killed with a gunshot in the head. They fell I lay on the flooralone . on the ground , and their bodies lay all around in grotesque My mother arrived and found me lying on the floor. poses. Everywhere, only chaos, panic, and death. They She entered the house, and when she saw me in such accused my grandfather of killing one Serbian, and then humiliating condition, it was :the worst thing. She sup­ they killed him in front of my eyes in the doorway. A posed what had happened to me, and she felt it like the number of women and children remained in the village. biggest sadness cifour life. We cried and screamed togeth­ We were hiding in basements of the destroyed houses. er. She dressed me, and we went together to the basement. My house was untouched. A group of Chetniks arrived ...My mother helped me a lot. I would like to become that day. They were looking for precious things, and infor­ a mother some day. But how? IMen represent to me now, mation about men who were hiding in woods. One among violence and pain. I know that all men are not like this, them, about 30 years old, ordered me to follow him in a but this feeling is strongerthan me.

52 International EIR May 21, 1993 Interview: John Ascher

Colombians told of political persecution of LaRouche

John Ascher is a leader of the political movement of Lyndon seen in other legal applications LaRouche in Baltimore. Maryland. His Wife. Rochelle (Shel­ laws, new applications were created in ley) Ascher. is a political prisoner in Virginia . sentenced cal pretext. to 10 years in prison as part of the witchhunt against the LaRouche movement. Thefollowing interview was conduct­ EIR: Can you be more specific as to ed'on May 12 by Marianna Wertz . ' your presentation of the human rights "'-{"",·v",, Ascher: People were generally "'UIII\"U . EIR: You recently traveled to Colombia to discuss your much familiarity with U.S. legal , and the idea wife's imprisonment and the human rights issues connected that you can have such corruption the government, with the LaRouche cases. What was your impression? the prosecutors , and the judges within United States was Ascher: I traveled to Colombia for approximately a week. shocking to the people I spoke with in lombia. I found within that oountry tremendous concern about the human rights issues in the United States, and I found that EIR: Isn't it true that they look to there is an intense debate in Colombia right now concerning model justice system? basic issues of law in the context of a new constitution that Ascher: They do, but on the other has been recently adopted. I believe that Colombia as a nation Colombia, for example in the spoke with con­ is looking very seriously at human rights issues in the United gressmen who were very angry with the United States in States. I believe my trip there was very effective in showing general about the application of force inst Colombia. One people something which they had no idea existed within the senator I spoke to , for example, ifically said that he United States. considered the violence in Colombia be not only internally created, but that one element of the . within Colombia EIR: Can you tell our readers something about your wife's comes directly from the United S . He fe lt the govern- case? ment of Colombia and the Congress Colombia are under Ascher: As I stressed when I was in Colombia, in my wife's tremendous pressure from the United �tates. case, and in the other cases of associates of Mr. LaRouche, Others that I spoke with, patriotic geople, are very angry what we've seen in the U.S. legal system is the application of at the attacks against the military i stitutions throughout the Thornburgh Doctrine to the United States intemally. In Ibero-America, and of course, in Colombia, in particular, other words , the philosophy that might makes right, the philoso­ coming from so-called non-governfnental organizations phy that law is based on achieving political objectives, is what [NGOs) . The people in Colombia often have a hard time has been applied in the legal cases involving my wife, Mr. distinguishing the non-governmental rganizations from the LaRouche, Michael Billington, and everyone else. United States government itself. Shelley was charged specifically with violations of the Virginia securities statutes, both with failure to register as a EIR: Not for no reason ! securities broker and with intent to defraud individuals who Ascher: Yes, exactly. And there 's a ig question also about were supporters of our organizations, making loans to these what the new administration is going to do. Is the Clinton organizations in political support of our goals. administration going to continue witH these policies which In my wife's case and the 15 others charged in the state people in Colombia detest, or is there koing to be a change? of Virginia, they indeed were not even charged, in the sense And to be blunt about it, I think at this point, people see very that the "crime" did not exist until after they were arrested. little change coming from the new a ministration. What I This was the app lication of a law intended for an entirely explained to people there is that we be ieve the new adminis­ different purpose-for stock brokers and securities brokers . tration has not entirely developed the!� policy, and that one If this law were applied to every politician nationally, many important element in their effort to stop the human rights of them would be in prison. Of course, in this case, as we've violations in our cases is the demand from Ibero-America,

EIR May 21, 1993 International 53 Lyndon LaRouche, my wife, �d the others. I spoke at a meeting at wthch they were discussing the impact of the new constitution on the legal profession, and Rochelle Ascher to they were very concerned aboht how the United States was 'Friends in Colombia' now more of a model for Colorhbia, and the dangers inherent in that, given the difficulties �ithin the U.S. legal system. So when I addressed them conqerningour cases, people were This message was sent by Rochelle Ascher to Colom­ very shocked, and quite a numper of the people at this meet­ bia, to be read at a conference on "The Fraud of the ing endorsed the petition to fn[sident Clinton. U.S. Model of Justice" keynoted by John Ascher on May 6. EIR: Did you gain any other notable endorsements? Ascher: In total, we were ab�e to organize 20 new signa­ I am honored that my husband has been invited by tures, and others are considerin� signing. This included elect­ those in your country who place such a high value on ed members of Colombia's SeJjlate, attorneys, and others. freedom to discuss the barbaric jailing of Mr. ; LaRouche and his associates .... EIR: How would you evalua� the benefitof the trip vis-a­ My husband will be able to give you the details of vis gaining freedom for Shelley and the others? this atrocious travesty of justice. My ostensible crime Ascher: I think that in Colom1i>ia, as we've seen in other na­ was "conspiracy with intent to commit securities tions of lbero-America and aro�nd the world, there is a grow­ fraud." The law characterizing the raising of political ing, aggressive mood of acting �o insist that the United States loans as the sale of unregistered securities was not change policies which people I�n these countries identify as passed until several weeks aft er we were indicted for being dangerous to the world. Tijisspecifically includes policies this so-called crime. of infringement upon national sbvereignty. I think that, under But of course, our jailing had nothing to do with these circumstances, many peq,le see the LaRouche case as so-called securities fraud. As my husband will docu­ very critical to changing what rule wrong policies. ment for you, Mr. LaRouche was railroaded to jail as Also, we have many friehds in Colombia who pretty part of a deal demanded by [Mikhail] Gorbachov, to much understand the urgent *ecessity of LaRouche being which George Bush fully agreed. This is the price Mr. free, because his policies are cljitical. I had many discussions LaRouche has paid as the leading economist commit­ about Mr. LaRouche's policie$ attacking neo-liberalism, for ted to Christian economics in the world. This is the example, with people in the ¢atholic Church, who under­ price he has paid as the leading opponent of the malthu­ stand very well that Mr. LaRo�che' s ideas play a critical role sian genocide of the InternationalMonetary Fund. in going after certain neo-liber� tendencies which are taking I know that many courageous people in your country over the economic policy planbing and thinking throughout have been similarly persecuted and even killed for Ibero-America. standing up for these same principles. History is made So, the view of many people who understand the by those who are willing, like Lyndon LaRouche, to risk LaRouche case is not only that there are human rights abuses, everything, even their mortal lives, for the sovereign but that LaRouche and his fr"Fedom, and freedom for his rights of nations and the sanctity of man made in the associates, is critical in terms �f dealing with the crisis in the image of God. . . . world at this conjuncture. A�d I think that my trip there helped galvanize support for l.jaRouche's freedom and gave people who may not be so fa�liar with the LaRouche cases a first-hand sense of what is gbing on there, and the urgent from Colombia, that there has to be a change in the adminis­ need for Mr. LaRouche to be free. tration's policies. EIR: I understand that Sheller sent a message to be read by EIR: I understand that you spoke publicly before associa­ you to a conference while youl were in Colombia (see box). tions of attorneys. Could you say something about that? Did she have anything further to say on your return? Ascher: I addressed the two primary legal organizations in Ascher: My wife is very happy that I'm able to represent the country, one of which is essentially the bar association, her and our political moveme", and to be able to travel and which is called the National Confederation of Attorneys get this kind of support. She's confident, as I am, that under (Conalbos), and the other is called the National Association the current political circumstanFes, if we continue, and given of Trial Lawyers (ANDAL). We were able to get support the very open political situatiiln that I've seen, we can do from both these organizations. Some officials of Conalbos something to change both thei legal attacks and also to get had already supported our appeal to President Clinton to free our policies implemented. :

54 International EIR May 21, 1993 Report from Rio by Silvia Palacios

Will Brazil take the Fujimori route? that a booklet pr�uced by the Peruvi­ As society sinks deeper into misery, military and civilian leaders an governmentand entitled "Peru, the Path of National Reconstruction with are considering the Peruvian solution . a Democracy Capable of Defending Itself," was circulating widely among Brazil's civilian and military intellec­ tuals. This bookllet states the reasons T he main topic of conversation in now frequently reporting rumors of that led Fuj imorl to adopt his extraor­ the nation's capital of Brasilia today meetings of military men to evaluate dinary measureSj, and how they have is whether Brazil will follow the ex­ the pace of national deterioration­ fared since. ample of Peruvian President Alberto the levels of hunger, unemployment, Continuing, Moreira Alves ner­ Fujimori. In April of last year, with and inflation that are fast approaching vously states th�t the ideas contained the backing of the Armed Forces, the extreme limits of misery . in the booklet h/lve already made an Fuj imori took a series of drastic mea­ Making the loudest warning of a impression amo�g top military men sures, including the closing of Con­ possible repetition in Brazil ofthe Fuji­ and civilians al*e. "It is a fact that, gress, to forestall the disintegration of mori model have been the representa­ in the last few weeks, the number of his country . tives of the liberal oligarchy of Sao politicians, busihessmen and reserve Discussions of such an option are Paulo. 0 Estado de Sao Paulo, the officers who ha"f. entreated top active spreading through Brazilian political leading newspaper of the city, carried duty officers to �esign a solution Ii la and military circles in response to the an editorial on May 3 which made no Fuj imori has gr�wn ....What was perceived imminence of a social con­ attempt to hide the fear this circle feels. unthinkable just, a few months ago is vulsion, due mainly to the dramatic Prior to his economic measures speech now beginning to be discussed." collapse in living standards, which the in April, the editorial said, Itamar The situatiollis further complicat­ economic measures anounced at the Franco "received much advice, in­ ed by the decisiQn of Franco and some end of April by President Itamar Fran­ cluding proposals for nationalization of his ministers to set themselves on a co have done nothing to alleviate. of the banking system, freezing prices collision course with the Armed Forc­ Indicative of the mood, on April and closing the National Congress. es. In an interview with the Mexican 28, the president ofthe influential Mil­ These came from some of the 27,000 daily Exdlsioir, Franco absurdly itary Club, Gen. Nilton Cerqueira, letters he receives every month. " Fran­ blamed the nadon's extremely high sent a letter to Senate President co has now floated the idea "that the debt solely on the military, making Humberto Lucena denouncing their people who are writing him want a dic­ no mention of either the International decision to raise their own wages by tatorship," the editorial added. Monetary Fund! or the international 367%. "It is lamentable," wrote Gen­ Similar indications of how Brazil­ banks. Also, JU$tice Minister Mauri­ eral Cerqueira, "that in a period in ians view things were suggested by cio Correa is seelcing toindemnif y the which the legal order and social condi­ the April 21 plebiscite on whether the relatives of political prisoners "disap­ tions are going through a grave crisis, country wanted to continue with a peared" during :the 1970s when the the senators, from whom one expects presidential system, switch to a parlia­ country faced a; threat from commu­ the virtues of moderation and pru­ mentary one, or restore a monarchy. nist guerrillas. ; dence, approve a measure that makes Thousands of citizens voided their All of this �nnecessarily opens a things worse in such fashion." ballots by writing in their own choic­ wound, since th� matter was resolved An organization ofretired officers es, such as "dictatorship," or "strong a decade ago with an amnesty for both called Guararapes published an ad in government. " sides. By insistihg on reviving the is­ the national press entitled "The Bra­ o Estado de Sao Paulo columnist sue, the ministry is opening the door zilian Nation Demands," calling for Marcio Moreira Alves, a leading pro­ for measures such as those imple­ the resignation of the chairman of the pagandist ofthe Marxist "Theology of mented by Argentine President Raul Chamber of Deputies because of Liberation" ideology, and an apolo­ Alfonsin when ij.ebegan trials against charges of irregularities in the manag­ gist for Anglo-American plans to dis­ top officers of tIjte Armed Forces, ac­ ing of administrative expenditures by mantle the Brazilian Armed Forces, cusing them �f violating human the chamber. wrote an article recently, "Searching rights, an actio� which merely served Newspaper commentators are for Fujimori," in which he revealed to divide �e natP-on.

EIR May 21, 1993 International 55 InternationalIntel ligence

in the previous cabinet. Giuseppe Guarino, will allow IAEA inspection of a nuclear InteriorMinister Deri the former industry minister who fought power plant in Yo ngbyon, but not at a nearby resigns in Israel against privatizations, is out. military ba�e which is exempted under the According to press reports, Ciampi's treaty. proposed list of ministers was discussed by Israel 's Interior Minister Aryen Deri, who There are indications that Malaysia may the Italian delegation at the International heads the Shas party, resigned May 9, appar­ be attemptipg to play a mediation role with Monetary Fund meeting in Washington on ently because Prime Minister Yitzhak Rabin respect to North Korea: Three weeks ago, April 28, before he made it known in Italy. failed to meet the demand of Deri's ultra­ Mahathir Was in Iran, a country with which The nomination of Ciampi came after a dele­ religious party. Shas had demanded the re­ North Korea has strong links. Under what gation from Moody's, the American rating moval of the supposedly secular Education auspices Malaysia might be acting as media­ agency, met in Rome with all candidates for tor is not known. Minister Shulamit Aloni, whose remarks prime minister, including House and Senate Shas had found to be offensive to the reli­ leaders Giorgio Napolitano and Giovanni gion. This move now has put the Rabin co­ Spadolini, Mario Segni and Ciampi. alition in the minority in parliament. Ciampi has already promised that his ADL sp reading more Most of the westernpress is speculating governmentwill last only until October, and that Rabin might be forced to seek the help prejudice in Germany disband after taking care of the economic of fivemembers of the Knesset (parliament) situation and electoral reform . who represent Arab parties, so the govern­ The April i$sue of ADL on the Frontline, the ment will be able to withstand a no-confi­ publication of the Anti-Defamation League dence vote . But since the majority of israelis of B'nai B'rith, boasts the headline, "ADL are opposed to the Arab-Israeli peace talks, Malaysian premier invited to Fight Prejudice in Germany: A World of the intention behind this artificial crisis Difference Program to Begin in Berlin." Ac­ might be to tell the Arabs that they should to visit North Korea cording to the article, the openings were be grateful for what Rabin is offering them. made by a January trip to Germany of an The fascist Likud party is accusing Rabin, North Korean President Kim II-Sung has in­ ADL delegation led by National Chairman of all people, of selling out Israel in the vited Malaysia's Prime Minister, Dr. Ma­ Melvin Salberg, who once again met with peace talks. hathir Mohamad, to visit North Korea. The Chancellor Helmut Kohl and other govern­ invitation was extended in early May when ment officials. a six-member delegation from the North Ko­ The ADL's World of Difference was Central banker takes rean Information Committee called on Dr. used to infiltrate U.S. law enforcement Mahathir and Deputy Prime Minister Ghafar agencies, and was funded with $1 million reins in Italy Baba in Kuala Lumpur. Among other from convicted junk bond swindler Michael things, there was discussion about informa­ Milken. Somepolice officers, who showed Interpreting the result of the April 18 refer­ tion exchange between the two countries, "promise" under the program and who have endum as a plebiscite against "political par­ including the exchange of television pro­ since come under investigation . in the ties," President Oscar Luigi Scalfaro has ap­ grams. Malaysian Information Minister Da­ spreading spy scandal, were rewarded with pointed central banker Carlo Azeglio tuk Mohamed Rahmat is quoted by Bernama junkets to Israel. Ciampi to form the next Italian government, news agency saying that news exchange be­ During Salberg's January trip, the ADL bowing to the demands of the international tween the two countries is particularly im­ contracted with the Office of the Commis­ financialel ites to impose a technocratic aus­ portant since reports about North Korea and sioner for Foreigners' Affairs of the Berlin terity government. The next Italian govern­ Malaysia are mostly by foreign wire servic­ Senate Administration for SociaJ Affairs to ment is requested to immediately find es and "inaccurate at times." conduct a Wo rld of Difference workshop for roughly $8 billion to plug holes in the 1992 Speaking in Malaysia on May 3, North senior officials of the Commissioner's Of­ budget, by accelerating the privatization of Korean Information Minister Kim Ki-yong fice,which deals with foreign asylum-seek­ the public industry and introducing new tax­ named the conditions that must be met if it ers . In Rostock, where skinhead violence es, and to plan a $50 billion austerity pack­ is to rejoin the Nuclear Non-Proliferation against foreigners erupted in riots with the age to be implemented in the autumn. Treaty (NPT), according to Japan's Kyodo police last year, city officialshave expressed The Christian Democracy, the main par­ news service. North Korea wants 1) a neu­ the desire tQ set up a pilot project for a World ty in the coalition which is supposed to sup­ tral International Atomic Energy Agency of Difference in public schools. port Ciampi, has moved to keep the Health delegation and assurances that its military San Francisco authorities investigating Ministry, which will presumably be saved sites will remain closed to foreign checks; the ADL spy scandal report that ADUFBI from budget cuts. The Socialist Party has and 2) the U.S. to guarantee it will not use informant Roy Bullock had traveled to Ger­ kept the Defense Ministry. The new foreign nuclear force against North Korea, and to many, where he twice met with law enforce­ minister is Beniamino Andreatta, an ultra­ withdraw nuclear weapons and facilities ment authorities over skinhead violence and liberal economist who was budget minister from South Korea. Kim said North Korea wrote the ADL profile of Germany's skin-

56 International EIR May 21, 1993 • GUNTER KRAUSE, Germa­ ny's transportation minister, resigned heads for which his boss, ADL Fact-Finding Cambodia. In addition to the dead police­ on May 6. He was immediately re­ chief Irwin Suall, has often taken credit. man, three other Japanese and five Dutch placed by Matthias Wissmann, who Bullock's informants are known to have in­ commandos were wounded. There is in­ recently took aver the research minis­ filtrated U.S. neo-Nazi groups, on the creasing pressure in Japan to withdraw from try and wants to scrap space research, ADL's behalf. EIR has exposed these groups Cambodia, cabinet secretary Yo hei Kono nuclear research and the development as being active in recruitment, training, said. V. N. head in Cambodia Yasushi Akas­ of maglev tra.n technology and in­ and incitement of skinheads against foreign­ hi travelled to Beijing, to meet with nominal stead to increase state funding of solar ers in Germany. Cambodian head of state Prince Norodom energy and biogenetics. Sihanouk, who has been there since late last year. • KENYAN "democratic" opposi­ In Beijing, a Foreign Ministry spokes­ tion leader Jolly Joe Mugalla, secre­ Pop e urges Iraq 's man "strongly condemned" the attack. tary of the Organization of Trade Without actually naming the Khmer Rouge, Christians to remain Unions, threatened at a major May I however, the spokesman expressed "our meeting in Nairobi, that any strike­ deep regret over the shelling of the Chinese Pope John Paul II has urged Iraqi Christians breaker or any employer who at­ engineering battalion in Cambodia." The not to emigrate, in a message earlier this tempts to disrupt strike actions, will Chinese, formerly the primary patrons of month conveyed by papal envoy Cardinal "bedealt witliby the necklace," ac­ the Khmer Rouge, officially "distanced" Achille Silvestrini, Prefect of Oriental Con­ cording to the Frankfurter Allgem­ themselves at the end of 1990. gregations, who was in Baghdad and and eine Zeitung. r'Necklacing" involves planned to meet with President Saddam putting a gasOline-filled tire around a Hussein. The message was delivered to the person's neck and setting it on fire. Chaldean Patriarch, Raphael I Bidawid, who read the pope's appeal at a mass. BETTINO CRAXI, Brazilian separatists • Italy's for­ "I share the hope that they stay in this mer prime mi�ister, won a vote in the country to perpetuate the heritage fed by plan southern secession Chamber of Deputies to keep his par­ their ancestors," John Paul said, according liamentary iI'flmunity on April 30, to an Arabic translation of a message he Fo lha de Sao Paulo reported on May 10 which protects him from prosecution. addressed specifically to Iraqi Christians. that on May 23, separatist Irton Marx will Judges in Milan are seeking to charge The pope continued that he hopedthat "cur­ declare the creation of the "Pampa Gaucho him in a swetping political "corrup­ rent painful conditions will change into Republic" in southern Brazil. Marx empha­ tion" scandal aimed at making Italy prosperity for Iraq" and its Christians would sizes that the fact of declaring the new re­ ungovernable. be able to stay "to carry out [Christ's] mes­ public 's existence doesn't mean that it will sage . . . . I am aware of the hard conditions separate yet from the federal union. That • CAMBODIA'S U.N. embassy is which Iraqi citizens are forced to live under. will occur, he predicts, following a plebi­ still led by THiounn Prasith, who was For their sake I have frequently raised my scite to be carried out by the assemblies in the Khmer Rouge ambassador to the voice in different ways for an end of their three southern states. No date is yet set for V.N. for seven years. The official pain," Pope John Paul said. The hardships that plebiscite, however. ambassador from Cambodia is Prince caused by the V.N. are among the reasons Continuing reports of separatist move­ Norodom Si�amoni, son of Prince Christians choose to emigrate, Reuters ac­ ments in the south have provoked strong Sihanouk, who prefers not to reside knowledges in its coverage. statements of concern. Bishop Dom Aloisio in New York. Sinesio Bohn, of Santa Cruz del SuI, in the southern state of Rio Grande do Sui, warned • P AKIST AN, under heavy threats Khmer Rouge attacks a week earlier that "there is a risk of civil from the V.S, that it will be declareda war if we don't deal with this." He charged "terrorist stat�," is now helping Egyp­ U.N., Chinese troops that international separatist interests are be­ tian intelligence compile lists of alleged hind these efforts in Brazil and that, among extremistssti ll based in Peshawar, and Two more United Nations positions came other things, this is a reflection of profound at least 180 foreign "fundamentalists" under attack from the Cambodian Khmer racism. "This is an idea which can be dis­ have been attested, according to the Rouge on May 4, according to a BBC report, seminated in times of crisis, such as these," Sunday Time5 of London for May 9. after a Japanese policeman, and later that he said. Dom Luciano Mendes de Almeida, Eleven ofthose arrested wereextradit­ night a Polish installation and a Chinese en­ president of the Catholic Bishops Confer­ ed, includin$ supporters of Sheikh gineering base, were attacked. The Chinese ence, condemned the propagation of sepa­ Omar Abdel�ahman, whose follow­ soliders returnedfir e. Japanese Prime Min­ ratist ideas and said that egotism and racism ers were arrested for the World Trade ister Miyazawa held a ministerial meeting could lead to the disintegration of the Center bombing. on May 5 to review the growing conflict in country.

EIR May 21, 1993 International 57 �ITillNational

Paris and London undercut Clinton's policy on Bosnia

by Edward Spannaus

The Anglo-American "special relationship" that has domi­ course of decisive action. Tqe danger of an open break, in nated United States postwar strategic policy is on increasing­ which the United States carrie$ out a course of action indepen­ ly shaky ground, as the Clinton administration considers dent of the British, is something that London will not risk. moving toward asserting an independent policy toward Bos­ nia. Yet the U.S. President is encountering enormous resis­ Owen lectures the 'colonies' tance and outright sabotage of his proposals from Britain and When Secretary of State Warren Christopher returned France, which are determined to prevent any U.S. interven­ from his six days of meeting" with the European allies and tion that could tip the balance in the former Yugoslavia the Russians, he briefed President Clinton on the European against the Serbs. resistance to liftingthe U .N.-imposed arms embargo against President Clinton clearly favors a strategy which is based Bosnia, and told the President that the Europeans, and espe­ on providing arms and light weapons to the Bosnian Army, cially the Russians, wanted to wait until after the May 15- while using air strikes to hold offthe Serbs while the Bosnians 16 referendum of the Bosnia� Serbs before agreeing to any are brought up to a more equal fighting strength. Notably, action. At this point, the administration apparently decided the administration's preferred policy would not involve U.S. to put any final decisionmakling on hold for a week. This ground troops. was decided before the May 10 European Community (EC) However, the Europeans, with much of the U.S. news foreign ministers meeting. media in tow, are determined to force Clinton to back down Meanwhile, EC "peace negotiator" Lord David Owen from this policy commitment, and are loudly proclaiming continued his haughty lectures to the American colonies, that he has already done so. As well, many of the media demanding that the United St�tes give up its "silly" ideas of pundits are advising Clinton to focus on domestic policy, and air strikes and lifting the ruins embargo, and instead put not to get bogged down in a "quagmire" in Bosnia. troops on the ground in Bosnia in support of U.N. For Clinton to follow such advice would be fatal for his "peacekeeping" and the Vance-Owen plan. presidency. The Bosnia issue is the predominant test for the Appearing on NBC's "Meet the Press" on May 9, Owen President at this time, one on which he has staked out a advised Washington that "to go rushing into military action position which commits the United States to a course of tomorrow or the next day wOl1ld be, in my view, extremely action which is morally correct against the treachery and foolish ....I don't think this is a time to lose our nerve or venality of the British-French alliance. He has strong biparti­ give up." Owen continued, '�We've got to be very careful san support for taking forceful action in Bosnia, with leading against having Europeans thi�ing of the Americans as cow­ Republican spokesmen such as Senators Robert Dole (Kan.) boys and Americans thinking of the Europeans as wimps." and Richard Lugar (Ind.) fully supporting him. Owen's transparent stratety is to increase the number of The people of both Europe and America are looking for ground troops in Bosnia, as i�surance to protect his friends bold leadership from the President. Despite all the backbiting the Serbs against western air strikes, and as a policy alterna­ and sabotage from London, the British would have no choice tive to allowing the Bosnians to obtain arms to defend them­ but to grudgingly follow along if Clinton embarked on a selves. The Vance-Owen plan is premised on the elimination

58 National EIR May 21, 1993 of Bosnia as a multi-ethnic sovereign nation, by breaking it tites as well. This is no more a civil war than Germany and up into ethnic enclaves. Since the fall of the town of Srebreni­ Austria and Czechoslovakia had civil wars in the 1930s. ca, the plans to destroy Bosnia have gone even further, with This, as then, in my view, is fascist thuggery on the march, the V.N. Security Council declaring five towns plus the city where religion is not a cause of violepce but, I believe, the of Sarajevo to be "safe havens" for the Muslim population. excuse for violence. The "safe haven" scheme, as pushed by the British and the "And the third thing I'd hope that tbey ' d realize is that the French, would simply create bantustan-type "homelands" in world community, by maintaining an arms embargo against a Bosnia policed by V.N. forces. multi-ethnic Bosnian democracy, ha, committed an act of It is from this standpointthat Owen demands that the V. S. moral rape .... send ground troops. "If you want to up your profileon Bosnia," "I can't even begin to express m)l anger for a European Owen said on NBC, "the best thing the Americans could do policy that's now asking us to participiate in what amounts to would [be to] put 2,000or so V.N. troops into these safe areas. the codification of a Serbian victory. Let's not mince words. . . . The absenceof your ground forces is a real problem." European policy is based on cultural and religious indiffer­ ence, if not bigotry. And I think it's fair to say that this would Bosnians tell the U.N. to get out be an entirely different situation if the Muslims were doing While Owen was declaring that the absence of V.S. what the Serbs have done, if this w�s Muslim aggression ground forces as V.N. peacekeepers is a "real problem," the instead of Serbian aggression. The truth is not lost on the Bosnian government was declaring the opposite: that the Islamic world, which is filled with a rising anger that we have presence of the V.N. peacekeeping forces is the major obsta­ not yet begun to understand, and I predict we will pay a large cle to taking the necessary next steps. price for it, as will the Europeans." On May 11, the governmentof Bosnia-Hercegovina for­ Biden's remarks received front-p�ge coverage in Britain mally asked the V.N. Security Council to withdraw all V.N. over the next days, with Britain' s For�ign SecretaryDouglas personnel from Bosnian territory, as a firststep toward lifting Hurd fuming that "it doesn't serve any purpose to start ex­ the internationalarms embargo. "We findthat the V . N. pres­ changing accusations across the Atlan�ic. " The London Daily ence on the ground has become an impediment to critical deci­ Telegraph in an editorial accused Biden of hypocrisy and sions by the international community," Foreign Minister cynicism, and complained that "aqcusations of inaction Haris Silajdzic said in a letter to the Security Council. He said against [British Prime Minister] Mr. Major come especially thatthe lifting' of the arms embargo would give the "democrat­ ill from a nation that has done nothing to date except indulge ic, multi-ethnic republic ...the means to defend itself." in a near-farcical crowd-pleasing exercise, to parachute relief Silajdzic singled out President Clinton as one who under­ supplies from the air over Bosnia." stands the Bosnians' "commitment and desperate plight" by The day after his Senate remarks I Biden was asked in a his seeking support for lifting of the arms embargo. "We be­ CNN interview what he thinks the iEuropeans should do. seech the Security Council to cease an arms embargo that has, "What they should do is what the Bospian governmentwants in practice, constituted an international intervention against them to do," Biden replied. "The Bosnian governmentoffi­ our legitimate rights as a member of the Vnited Nations." cially asked the Vnited Nations to lejlve so they could have the embargo lifted. If they believe-�d there's a legitimate Biden blasts 'bigotry' reason for it-that their troops delivering food are in jeopardy While Bosnia was delivering its demand to the V.N., if the arms embargo is lifted, then dOl what the Bosnian gov­ Sen. Joseph Biden (D-Del.) blasted the Europeans for their ernment suggests and what I suggest+-leave." "timidity" and "hypocrisy" over Bosnia, in a speech which sent shock waves across the Atlantic. Addressing Secretary of State Christopher during Senate hearings, B iden expressed sympathy for Christopher's having encountered "a discour­ Documentation aging mosaic of indifference, timidity, self-delusion, and hypocrisy" among the European allies. "Frankly, I've been hopeful that the allies would recog­ Sp eaking to this news service on Ma� 11. Gen. Paul Albert nize several realities," Biden continued. "First, that the Scherer. fo rmer head of German military intelligence Vance-Owen map-drawing approach to this question is pro­ (MAD). said: foundly flawed and has been from the outset. By starting with the premise that Bosnia will be carved up into ethnic On March to, 1993, I spoke at the !National Press Club in enclaves, this so-called peace plan, in my view, has only Washington, D.C. Then I urged th� Vnited States govern­ incited violence rather than discouraging it. And secondly, I ment to intervene militarily againsti Serbian aggression in would hope that they would understand that we face not a Bosnia in view of Europe's incapa¢ity to act. I urged the religious civil war, but a blatant act of Serbian expansionism Clinton administration to proceed with the lifting of the arms and aggression which in tum has unleashed Croatian appe- embargo against Bosnia and Croatia! and with American air

EIR May 21, 1993 National 59 assaults against Serbian artillery positions and supply lines. I strongly disadvised against any deployment of American ground forces in Bosnia. I'm very glad that the Clinton administration has appar­ Suall a target of ently in principle adopted a policy of liftingthe arms embargo and air attacks against Serbia. I am outraged at the arrogant obstructionism by Great Britain and France against that U.S. CalifoITlia spy probe policy. I strongly urge President Clinton to proceed with his by Jeffrey Steinberg I correct policy no matter what diplomatic trickery may be put , forward by this renovated Entente Cordiale. Obviously this new Entente Cordiale is determined to block any breakout of Irwin Suall, the director of tbe Fact-Finding Division of the the United States out of the geopolitical "Procrustean Bed" Anti-Defamation League of B'nai B'rith (ADL), is a prime of Versailles/Trianon/Yalta. target of the San Francisco District Attorney's Office, whose Never was the strategic factor of time so important as investigators are probing a nationwide spy ring that stole now. Action or non-action in the next two weeks can have classifiedgovernment data atIld passed it to the governments the most dramatic consequences. I think within the next two of South Africa and Israel. weeks the United States must proceed with a military inter­ A source close to the six·month-old investigation of the vention against Serbia. Were there no U.S. intervention, ADL, which has turned up eVidence of ADL illegal surveil­ which I sincerely hope will not happen, the military situation lance and data gathering on i over 950 political groups and for the Bosnia forces would likely be such that there is no at least 20,000 American citizens, told the San Francisco chance of ever rolling back Serbian conquests in Bosnia. Examiner on May 11: "Look at the top, at the organizational Equally important is that we must assume that already in setup, at the fact finders." The source named Suall as a lead­ the month of June the political and economic crisis in Russia ing target of the probe, which is expected to be concluded is going to dramatically escalate again. Under these circum­ with indictments by mid-June. stances aU. S. military intervention in Bosnia would become In fact, on April 30, SuaU hired Bay Area lawyer Charles increasingly difficult, if not impossible. In addition, with the Breyer to represent him. The move came immediately after Russian crisis worsening further, world public opinion is police released an inventory of documents seized in their likely to tum away from Bosnia. April 8, 1993 raids on the S�n Francisco and Los Angeles It must be understood that if there is no U.S. military ADL offices. Among those seized records were numerous intervention against Serbia in the time frame indicated, a memos to and from Suall and:the ADL's local San Francisco "Pandora's Box" of armed conflicts all over the globe will spy, Roy Bullock, as well as extensive financialrecords deal­ open up in the near-term. Inaction of the West will signify ing with ADL "fact-finding" expenses. internationallythat war of aggression and seizing of territory The San Francisco spy s¢andal is not the first time that by force is again an acceptable instrument of international Suall has been caught up in illegal intrigues. In March 1986, relations. In many parts of the world, there are latent conflicts Suall led an ADL effort to blame American political figure which so far have been constrained by the perception that the Lyndon LaRouche for the Feb. 28, 1986 assassination of West, and in particular the United States, will not tolerate Sweden's Prime Minister Olof Palme. Working with NBC wars of aggression. Inaction against Serbia would signify producer Patricia Lynch, Suall stirred up media smears that the West's proclaimed principles of internationallaw are against LaRouche and tried to fuel a Swedish police probe not to be taken seriously any more . The West, and in particu­ of a nonexistent "LaRouche angle" on the Palme killing. lar the United States, would appear to be a "paper tiger." Years later, a former top official of the East German I'm especially concerned about the long-range effect of secret police agency, the Stasi, revealed that the "LaRouche western inaction in Bosnia in the Islamic world. Were the killed Palme" story had been hatched in East Berlin and been West to tolerate the detruction of the Bosnian state and the foisted on gullible police and media by East German agents mass slaughter and rape of its citizenry, this is likely to of influence in the West. Although Suall was never named become the trigger of a new wave of Islamic anti-western by the former East German spy, it was the ADL Fact-Finding feeling that goes well beyond anything we have seen so far. Division that joined wholeheartedly with the Stasi and with It would not be a cheap piece of anti-western propaganda, top Soviet KGB officials in perpetrating the fraud and cov­ but it would address the truth of western complicity in the erup of the Palme assassination, which to this day remains slaughter of an Islamic people on the European continent. unsolved. All of these factors necessitate that the United States act now. And as a European, I say that the United States should Gerard returns to face indictment act unilaterally and ignore European obstructionism, cow­ On May 6, in a surprise development, former San Fran­ ardice, and diplomatic trickery. cisco police officerTom Gerard, a central player in the early

60 National EIR May 21, 1993 phase of the district attorney's probe , returnedfrom the Phil­ ippines, where he had taken refuge last November following an FBI interrogation about the passing of FBI and police files to the South African government. Initially, the San Francisco police investigation had cen­ tered around Gerard's relationship to Roy Bullock, a 40-year ADL undercover operator who infiltrated Arab-American The psychiatric shock groups, homosexual activist circles, and radical right-wing groups for the ADL. Bullock and Gerard received $16,000 from South Africa for spying on anti-apartheid groups in the troopsbehind :Waco United States, and Bullock frequently called upon Gerard to by Scott Thompson and Bruce Director illegally snatch documents from police and other government data bases. As Assistant District AttorneyJohn Dwyer delved deeper into the scandal, he refocused his probe at the ADL, At her April 19 press conference held Qours after theincinera­ which he now says is at the center of a nationwide illegal tion of 86 members of the Branch Oavidians, through the spy network. District AttorneyArlo Smith told reporters last actions of the FBI Hostage Rescue T�am, Attorney General month that Bullock is one of at least half a dozen full-time Janet Reno repeatedly stressed that thie choice of timing and ADL spies working in different parts of the country, illegally the method behind the raid had all bee� worked out in consul­ obtaining information from police and spying on activists tation with "experts." In testimony before the House Judicia­ believed to oppose the policies of the Israeli and South Afri­ ry Committee, FBI Director Williami Sessions reported that can regimes. the two most important "experts" were long-time Bureau Gerard, who had worked for three years for the CIA in the consultants, forensic psychiatrist Dr. Park Elliot Dietz and early 1980s, told police and reporters after his May 6 returnto psycholinguist Dr. Murray Miron. San Francisco that he feared for his life in the Philippines. He These two "experts"work with th� FBI's National Center was arrested at the San Francisco International Airport and for the Analysis of Violent Crime (IN'CA VC) at Quantico, released the next day on $20,000 bail. On May 12, he was Virginia, especially the NCAVC's Btlhavioral Sciences Unit arraigned and charged with fiveCalifornia state felony counts (BSU) headed by FBI Special Agent John E. Douglas and a relating to the theft of classifiedgovernment data . field action arm spun off the BSU kn�n as the Investigative In the indictment, Bullock is also cited for possession Support Unit. The FBI also drew upon an array of lesser of 1,300 California Department of Motor Vehicle records. cult "experts," including notably the i"kidnap-for-hire" Cult Bullock is expected to be indicted along with other ADL Awareness Network, which was c�ated out of the CIA officials in June. "mind control" experiments under th� influence of MK-Ultra Gerard is also being investigated by the FBI for his pos­ participant Dr. Louis Jolyon West. session of classified CIA documents dealing with agency activities in Central America during the height of the Contra Dr. Dietz protests efforts. According to FBI Director Willi.. m Sessions's testimo­ ny , the most important "expert" upon whom the Bureau re­ The Pollard angle lied was Dr. Park Elliot Dietz. Dr. Djetz told an interviewer Another angle on the spy probe is the Jonathan Jay Pollard that he arrived at the command center �ear the Branch Davidi­ affair, which could be reopened on the basis of the West an compound only 24 hours behinq the FBI, and that he Coast investigation. According to an article in the May 11 remained there for two days to help Iset up the negotiations Village Voice by Robert Friedman, Jonathan Pollard, the between the Branch Davidians anJi personnel from the convicted Israeli-Soviet spy, has written recently to friends NCAVC 's Special Operations and R�search Unit. San Anto­ that a prominent official of the ADL was key to his spy nio Special Agent in Charge Jeff Jamarr, who had responsi­ activities. One likely suspect is Mira Lansky Boland, Irwin bility for the command center, testifiedthat Dietz had particu­ Suall's Washington, D.C. "fact finder." A former graduate larly pushed the allegation that there was "child abuse," and school classmate and friend of Pollard's, Lansky Boland that every passing day increased the risk to the children. This worked for the CIA and the Pentagon's Officeof Net Assess­ allegation especially played on susc,eptibilities of Attorney ments before going to work for the ADL in late 1982. General Janet Reno. In May 1991, Lansky Boland escorted a group of 11 Dietz has ceased giving interviews on his role to the police officers to Israel on an eight-day all-expenses-paid press, because he maintains that the April 25 Sunday Times junket. Gerard was one of those who traveled with her, in of London distorted what he told them. Dietz refuses even to what another participant described as a "payback for services clarify what the distortions were. Hi� colleague, Dr. Murray already rendered" to the ADL. Miron, who was also interviewed for the Times article, be-

EIR May 21, 1993 National 61 lieves there is nothing wrong with it. eration Army case, Jonestown, and the Johnny Walkerespio­ So, what is Dietz hiding? nage case. The Times article, among other things, said: On the basis of this assessment, Miron told the FBI to "FBI chiefs ordered the attack on the cult's compound disregard Koresh's religious beliefs and instead deal with after being told by its psychiatric experts that [Branch Da­ Koresh as a manipUlative criminal psychopath. Mironis not vidian leader David] Koresh was not the sort of man who disturbed that his assessment led to such disastrous results in would commit suicide . They were also told that unless the Waco. He continues to believe that the use of force was Bureau acted decisively, the siege could last two years and necessary. Koresh would starve women and children rather than sur­ Miron said in his final report to Attorney General Reno render. before the April 19 assault: "I have no certain predictions of "After weeks of negotiations, the agency decided to what will happen if any kind of assault is mounted. I said it commission two of America's top psychiatrists to build an in the negative. I said I am not convinced that Koresh is 'offender profile' of Koresh. Hours after their conclusions suicidal; however, what I did say was that my confidence were sent to FBI headquarters in Washington, the decision in any kind of conclusion Wanes as this situation goes on, was made to use tanks and tear gas. . . . particularly in view of the fact that there are no negotiations, "Crucially, one report ruled out the likelihood that Kor­ that we are at an impasse, that the methods we are using are esh would kill himself. Murray Miron told the agency that entirely ineffective, and furtber, have the character of either the cult leader would not risk physical pain ....His conclu­ weakness or mean-spiritedness. I was specifically referring sions, contained in a secret memorandum, were based on a to playing sounds of rabbits being killed and Tibetan chants. study of five letters written by Koresh during the 51-day Further, it was transparent that Koresh was in entire control siege. Miron also warned that Koresh had no intention of of this situation. We had to try to assert our authority and our surrendering and that the FBI should take 'positive action control of the situation. It wasentirely out of hand." sooner rather than later. Further delays would increase rather On the basis ofhis analysis offive ofKor esh's messages, than reduce the danger.' Miron told the FBI that there !was little chance Koresh would "A second psychiatric profile sent to FBI chiefs in Wash­ commit suicide. ington also warned that further delays would endanger the lives of cult members . Park Dietz, an FBI consultant psychi­ Psychiatry and the W 3£0 children atrist, advised that the cult leader was prepared to sacrifice Dr. Bruce Perry, who is a staff member of the Baylor the lives of his followers rather than surrender. College of Medicine's Department of Psychiatry in Houston, "Dietz said in a confidential memorandum: 'The likeli­ was chosen by the Texas Child Protection Service (CPS) to hood of there being a successful surrenderof healthy women be the team leader for treating the 21 children released from and children is remote .' He warnedthat when food and water the Branch Davidian compound after the initial raid by the ran out, Koresh would rather see his followers go hungry Bureau of Alcohol Tobacco 'and Firearms (ATF) in Febru­ than give up .... ary . From the very beginning, Dr. Perry tried to depict a "The timing of the memorandums was crucial in influ­ scenario of "abuse and neglect," that had caused some of encing the FBI's decision to raid the compound. Miron and the children to develop a syndrome seen in many combat Dietz told the Sunday Times that they were asked to submit veterans known as post-traumatic stress disorder. Perry said their conclusions on the Saturday before the raid. Later that that the syndrome had caused potentially irreversible brain day Janet Reno, the attorney general, approved the decision damage to the children, so Dr. Perry was clearly one of those to send in the tanks. In seeking Clinton's support the next "experts" informing Attorney General Reno about "child day, Reno cited the advice of the psychiatric experts." abuse." Perhaps Dietz is just protesting that the article identifies However, Dr. Perry was forced to admit in a May 5 press him as one of the two psychiatric shock troops most responsi­ conference that, afterextensive debriefingof the children, he ble for the Branch Davidian conflagration. could not find any signs of sexual or other kinds of child abuse that would meet the standards of legal evidence em­ Psycholinguist Dr. Murray Miron ployed by the CPS to have taken the children away from The other expert cited by Justice Department officials is their Branch Davidian parents. But, despite the ruling of Dr. Murray Miron, a psycholinguist from Syracuse Universi­ authorities from Child Protective Services, Perry insisted ty who has been on a continuous retainer with the FBI for that the children had suffered intense beatings as early as 15 years. Over the years , Miron has developed a computer eight months old, had suffered emotional abuse, and, al­ program which he claims can produce a psychological assess­ though he himself found no evidence, he still insisted: "I ment of a subject by analyzing written and oral speech. He think that corroborates earlier reports that David Koresh had claims to have worked on every major case the FBI has wives as young as 12." investigated, including the Patricia Hearst-Symbionese Lib- Dr. Perry's eighth report includes almost every allega-

62 National EIR May 21, 1993 tion made by Branch Davidian defectors who had been brainwashed by the Cult Awareness Network, showing that his debriefings of the children had been biased by this "kid­ nap-for-hire" group. Perry also stated that his psychiatric team had set up a law enforcement liaison group, which turned his reports over Farrakhan dispels to the Texas Rangers and the FBI. In several reports Perry alleged as fact the whispered mythology of the children, that media image this was the apocalyptic final battle and that there would be "fiery explosions." Afterward the children believed that by Debra Hanania-Freeman David Koresh would return from the dead to slay the evil outsiders. According to Dr. Perry, this was evidence of some kind of suicide pact among the Branch Davidians. On May 3, three hundred political, religious, and community leaders enjoyed a rare opportunity to hear the Honorable MK-Ultra's Louis Jolyon West Louis Farrakhan, leader of the Nation :of Islam, present for Dr. Louis Jolyon West had been a pioneer in the CIA­ consideration to President Clinton and the U. S. Congress his funded experiments using LSD and other forms of menticide analysis of the crises confronting America. (electro-shock, isolation deprivation, and the group dynam­ The National Press Club event was hosted by the Capital ic, behavior modificationtechniques created at the Tavistock Press Club, the nation's oldest black media organization, Clinic) as part of the notorious MK-Ultra program in the which was founded over 50 years ago when black journalists 1950s and '60s. He is a founding influence and advisory were banned from membership in the National Press Club. board member of the Cult Awareness Network, which gave Although Minister Farrakhan is no stranger to the public him its Leo J. Ryan Award in 1990 (see EIR , May 14, podium-an address he delivered in Atlanta this past October "Kidnapping 'Experts' Bid to Take over Justice De­ drew an audience of over 50,OOO--it was his firstappearance partment"). at the National Press Club. Asked about the lessons of the decision to bring the Farrakhan used the opportunity t release a statement standoff with the Branch Davidians to a head, West said that entitled "A Torchlight For America," whose text was ex­ the work of the FBI planners at Quantico was "terrific, cerpted from his forthcoming book of the same title, to be outstanding," but that the Bureau should have waited, be­ released sometime in May. cause, "When you have a psychopath in a trap, you can't Farrakhan's remarks examined the status of the nation's predict what will happen." Although West appears not to health care system, welfare reform , taxation, prison reform , have been consulted as an "expert" by the Bureau on the the national debt, and the economy. Although the speech was Branch Davidians, this was not the case with CAN. As EIR packed with facts and statistics, and was bitingly accurate in has previously reported, it was defectors brainwashed by its critique of the state of the U. S. economy, what was most CAN from Australia, whose delusions provided the basis striking about the presentation was not Minister Farrakhan's for the affidavit in the Feb . 28 ATF raid. And, a spokesman acumen as an economist, but his personal vision of God, his for FBI Special Agent Jeff Jamarr told EIR that CAN mem­ good humor, and the kind of passionate defense of African­ bers were calling the command post in Waco throughout the Americans that could only be delivered by one who has fully siege with reports that sought to incite the Bureau's hostage internalized his own responsibility to provide leadership for negotiators. his people. West sees the events at Waco as an opportunity to use "I have to stand and speak for the voiceless, whose leader­ the excuse of the First Amendment's separation of church ship has often been quiet or weak in the face of an open and state to crack down on the very rights the First Amend­ enemy. Although I have been misrepresented by the media ment protects. West said that it is necessary to protect chil­ in the past, this is a new opportunity to receive my message dren from "dangerous, ruthless, manipulative, screwing" and judge it against the criterion of truth. Tonight, I hope to cults that take the guise of religion. He called for lowering speak to you and be received without bias and prejudice," he the threshold of what constitutes a legal definition of child said. The Nation of Islam leader said ne had been tarred as abuse, so the state can separate children from parents in so­ an anti-Semite, as a hater, in an effort calculated to cut off called cults. West complained that cults that call themselves his spreading influence in the black community, to make churches are given wide latitude for criminal behavior. clergymen and political and civic leaders fear that they would These religious cults must be made open to scrutiny by be similarly slandered if they associated with him. His words federal law enforcement, and their finances must not be were taken out of context and misrepresented. When he at­ protected. "Freedom of belief should not be a refuge for tacked Israel for persecuting Palestinians, he was branded a scoundrels" like David Koresh, West claimed. "Hitler."

EIR May 21, 1993 National 63 'Portray me as 1 am' pursuit of music. Farrakhan challenged the media present to portray him Farrakhan explained thllt two years ago, at age 58, he as he is, to confront his ideas directly. "If anything that I was searching for a way m(i)reprof ound than mere words to have said or written is proved to be wrong or a lie, then I will convey his message to the community-for a tool to initiate retract my words and apologize before the world. But we dialogue among the groups that have differences and misun­ cannot solve any problems by bowing down to falsehood," derstanding about himself and the Nation of Islam. "I won­ he said. dered what gift I could give:to the community, and I thought Farrakhan insisted that unless America's leaders are pre­ that I should give the gift of music. " He began to play again, pared to deal honestly and forthrightly with the nation's prob­ and said that he now devotes three hours a day to his musical lems and tell the American people the truth about the gravity studies. of those problems, the nation has no hope of recovery. He Apparently, Farrakhan was initially unaware that Men­ went on to say that "when people disagree , the intelligent delssohn came from a famous family of Jewish intellectuals, and rational thing to do is to have a dialogue. Perhaps through and that his music had been banned by Hitler; but, he said, dialogue, differences can be reconciled." that was all the more reason why he wanted to perform work He asserted that the most profound crisis the nation faces by the composer he had lolved since childhood. Farrakhan is a numbing of the people's moral conscience. "The root of said that when he hears the works of Mendelssohn, or of the problem in America is spiritual, necessitating a spiritual any great composer, what he hears is not that composer, but solution. Therefore , I am calling for a convening of the spiri­ God. "When you can see andhear God manifested in human tua
leadership to spearhead a moral rejuvenation among the beings, you are fully able i to respect their humanity," he American people. Representatives of all races and all faiths said. should be brought here to Washington, D.C. to hold confer­ In celebration of his 60th birthday, Farrakhan invited ences with President Clinton and our government leaders the citizens of Chicago to it first-ever concert on May 17, with the aim of developing programs for building the values featuring musicians of the major faiths-Christianity, Juda­ and moral backbone of America. Without a moral back­ ism, and Islam-at the Christ Universal Temple Church. bone," Farrakhan asked, "how can a nation stand upright? The invitation read, "On this , my 60 birthday, I desire for We must take the first step toward building the country's us to use the universal language of music to help us rise moral backbone by convening such a group." The minister above the fray that has been created.. ..Hopefully , the suggested that the central problem that should be focused on music will lift us above divisiveness and produce a bridge is the basic value and sanctity of human life; that was the upon which we can meet to form the basis of a New Be­ foundation upon which we could build the structure for ginning." America's future . 'I am no hater' The importance of Classical music "Is this a new Louis Fanakhan?" he was asked. Minister During a question-and-answer period following his pre­ Farrakhanlaughed good-naturedly, replying that he certainly pared remarks, the audience had the opportunity to see a side hoped he had grown and ckveloped over time, and would of Louis Farrakhan never presented in the media, when EIR continue to do so. But Fan!akhan also made clear that it is representative Lawrence Freeman asked him to comment not his responsibility to try Ito reconcile who he is, with the on his recent performance of Felix Mendelssohn's Violin image of him portrayed in the media. "I am no hater. I never Concerto, and the personal meaning that this Classical music was. I will not lie about this," he stated simply. "I do not lie holds for him. to God, why should I lie to man?" Farrakhan, who seemed delighted by the question, will­ Hearing Farrakhan in person for the firsttime was clearly ingly shared his experiences as a child, when he studied the startling to many of those gathered who had only read news violin, nourished by a mother who demanded violin practice accounts of him circulated by his enemies. But Farrakhan's before other activities. He talked about how he came to love wit, vitality, and most importantly, his humanity, wereirre­ the instrument and dedicate hours to practice during his teen pressible. Farrakhanis, without question, a far different man years. Recognized for his talent, he once appeared on Ted than the sound-byte target that the Anti-Defamation League Mack's televised talent show. But when he went to college (ADL) of B'nai B'rith has constructed. Indeed, he thanked in Winston-Salem, North Carolina, he was forced to put his Lyndon LaRouche's associates for their work and insights instrument aside. There was no place for a black Classical exposing the ADL, saying; he was shocked when he saw violinist in the racist South; there wasn't even a teacher he the ADL's "Farrakhan dossier" portraying him and those could study with. associated with him as criminals. Clearly, Farrakhan came Later, when he accepted Islam as his faith , Farrakhan to Washington to deliver a message and to offer his help to a said that he wanted to focus his full attention on learningand troubled nation. He is a naticimal asset whose voice should be teaching the work of Elijah Muhammad, and he gave up his heard.

64 National ElK May 21, 1993 and African America." The magazine, distributed to black Masons throughout the country, is published by the Phylaxi� Society, "A Society for Prince Hall Freemasons ," though n4ither the society nor its magazine are official spokesmen for Prince Hall Freema­ Battle intensifies sonry. The pressure on the black Masons not to join this fight is over masonic statue made clear in a formal disclaimer by Walkes also in this Phylaxis issue: "I just received a call from a very dear and by Marianna Wertz trusted friend from Virginia, who felt that Freemasonry would be harmed if the statue is removed. He asked that I make a statement that he could publish. I did not; as I needed With the publication of the latest issue (fourth quarter 1992) to pray on the matter. . . . [However, if] the removal of the of Phylaxis, a magazine of the (African-American) Prince statue would in any way harm Freemasonry, then I say let it Hall Masons, the battle launched by the political movement stay in place." of Lyndon LaRouche and this news service to remove the But the polemical style of Walkes's:preface, and the fact statue of Confederate Gen. Albert Pike, the founder of the that he also included in the issue extended coverage of the Ku Klux Klan and a leading Scottish Rite Freemason, from statue fightand of Pike's history taken fromthis news service Judiciary Square in Washington, D.C. has greatly escalated. and the Capital Spotlight speak mountains about where they Devoted virtually entirely to this one issue, Phylaxis makes really stand. a fierce attack on the federally maintained Pike statue and, by implication, on those who are trying to keep it up. Park historian is chief of ' Aryan' society In his preface to the issue, Editor Joseph Walkes, Jr. , Another important development in the battle over the who is also president of the Phylaxis Society, describes his Pike statue is the finding, made public on May 3 by Chaitkin, research into the links between white freemasonry and the that Gary Scott, the National Park Service's principal histori­ KKK. "Caucasian Masonic friends ...told [me] that during an for the Washington, D.C. area, who was responsible for its heyday . . . almost everyone had joined the Klan and that researching the Pike statue for the U. S. Congress in response I should not take it as a big deal. Perhaps it wasn't a big to pressure to remove it, is a key coordi�ator for the campus­ deal to Whites, but to African-Americans who were on based affiliate of the Ku Klux Klan, the "Kappa Alpha the receiving end of their hostilities, it was indeed a big Order." deal ! ... Scott's reports to the Congress and to the public on Pike have whitewashed Pike's KKK career, stating, despite solid, 'None have been more hostile' well-known evidence to the contrary, that the "evidence is "None has been more hostile to us than the White Su­ inconclusive. " preme Council of the SouthernJurisdiction located in Wash­ Scott had been subpoenaed to testify at the trial of Rev. ington, D.C. and calls itself the Mother Supreme Council of James Bevel and Anton Chaitkin for the "crime" of "statue the World, they were indeed a great evil. We will never climbing" (see EIR April 30, 1993, p. 58), but his subpoena forget or forgive the things they printed about us in the New was quashed by federal Judge Royce Lamberth, himself a Age [Scottish Rite] magazine. For instance, in their May, former member of the "Albert Pike" chapter of the Scottish 1949 issue, page 266, saying that our blood was not human Rite's youth group in Texas. blood but animal blood. Nor the other antagonistic com­ As Chaitkin revealed in early May, the Kappa Alpha mments in ...19 47 ...19 48 ...19 49 ...19 50 .... Order, founded in southernuniversities during the late 1860s "At the end of my research I published my paper, 'The and still active nationwide today, is de\lotedto the perpetua­ Ku Klux Klan and Regular Freemasonry, ' in the third quarter tion of white supremacy. Their catalogue states, "Aryan in 1982 issue of the Phylaxis. I republished it in the News Quar­ blood, we exclude the African from membership ....The terly in its Spring 1992 edition . . . where it was dis­ 'prescripts,' 'creed' and 'oaths' of the Klan were remarkably covered by supporters of Lyndon LaRouche, who demanded similar to the principles and obligation of the K.A.-so that the statue of Pike in Washington, D.C. be re­ much so that our brother, Thomas Dixon, author of The moved .... Clansman, claims a participation of K.A.'s in organizing "I have reproduced [here] my original article and have the Klan." permission from historian Anton Chaitkin to reproduce his Gary Scott is the current Kappa Alpha Chief Alumnus, article, all for the informationof our readers which will allow responsible for the activities of thousands of men nationwide you to judge the merit of the debate and also stimulate a more in this white brotherhood. Little wonder that he wanted to educated discussion within the Masonic community of White hide the truth about Albert Pike from Congress!

EIR May 21, 1993 National 65 Readers would wish that At the Highest Levels displayed that quality of Strobe Talbott which Ukrainians saw on May 9- 10. Instead, 80% of the book simply rehashes, in effect, the contents of the news and analysis stories of the New York George Bush's legacy Times and Washington Post during the period of the Bush presidency. And when the authors let Bush and Gorbachov, of mismanagement in their two major subjects, get away for a moment from the reporters ' notebooks, the two Presidents' private thoughts East Europe policy and communications most frequently revolve around the ef­ fort to get better headlines for themselves in the Washington by Aaron Tr epav Post and the New York Times. Alas! But there are some disclosures which contradict the ver­ sion of history peddled by the liberal press during the four Bush years, when it was covering up for Bush and Thatcher's At the Highest Levels: The Inside Storyof total mismanagement of East-West relations. The quality of the End of the Cold War Reagan's principled commitment to the Strategic Defense by Michael R. Beschl oss and Strobe Talbott Initiative (SDI), and of Gorbachov's fearfulobsession by it, Little, Brown and Co., Boston, 1993 are clarified on pages 113-1 18. Former secretary of state 498 pages, hardb ound, $24.95 George Shultz has recently made the same points as well, in his book, Turmoil and Triumph. Neither book properly cred­ its Lyndon LaRouche with originating the SDI policy which Soon afterI finished reading this book, I learnedof a welcome Reagan later adopted, as they should, nor do Beschloss and development involving one of its authors. Strobe Talbott, Talbott inform their readers that it was the Soviet attempt to now U. S. Special Ambassador to the nations of the former match the SDI which crippled their economy and thus Soviet Union and overall "tsar" for U.S. policy towards doomed their system, as Russian representatives recently them, visited Ukraine on May 9 and 10 to reverse the crazy detailed at a seminar at Princeton University. anti-Ukraine policy which the Clinton administration had Pages 13-14 and 240 make it clear that Henry Kissinger's inherited from George Bush's "chicken Kiev" speech of Aug. 1988 proposal for negotiations with Moscow over eastern 1, 1991. Talbott retracted the earlier U. S. threats that there Europe, both in its original Kissinger form and in the different could be no good relations between the two countries until form in which Bush and Baker adopted it, sought to block Ukraine firstrid itself of all nuclear weapons. "It is important Russian-German cooperation. not to be a one-note Johnny," he said. "What we want to do is engage the Ukrainian government in a dialogue about the What Sachs has wrought relationship in all of its aspects, rather than just dwelling on Thus, in place ofthe East� West Europe economic cooper­ one subject [nuclear weapons], important as that subject may ation that LaRouche detailed in his successive SDI, "Food be ." Talbott also said that Washington "wants to develop a for Peace," and European "Productive Triangle" proposals, relationship with Ukraine in its own right," separate from Russia and East Europe have been encouraged to apply the that with Russia-yet another problem inherited from Bush. formulas of the International Monetary Fund and Harvard's The new administration's anti-Ukraine policy had gone crazed Jeffrey Sachs. As a result, it is reliably estimated that so far, that President Clinton had recently delivered a well­ the industrial output of the former Soviet satellites has fallen publicized snub to Ukrainian President Leonid Kravchuk­ to 30% of its 1989 levels . Russia itself is in a condition which in effect telling him not to bother to visit the United States, the ballerina Nataliya Makarova, for example, compares to because Clinton might not receive him here. Now that has all the devastation immediately following World War II-ex­ been abruptly thrown out the window, as it deserved to be. cept that that was a period of reconstruction, full of hope despite the horrible material deprivations. Not so today. It The urgency for change seems that Harvard's witless Jeffrey Sachs has hurt Russia What is important, and what was missing throughout the more in 18 months, than Hitler, the Reichswehr, and the SS Bush period, is the courage to cast out false, failed ideas in could do in four years ! favor of better ones-and especially so in Strobe Talbott's It was in this way, principally, that Thatcher and Bush area. What must be grasped very quickly is that, not only threw away the greatest opportunity for peace since World with reference to Ukraine, but top to bottom, the entire Bush­ War II, during the period 1989-91. If they are not reversed Thatcher policy towards post-communist Europe has been an soon, by this administration, these policy-legacies of Thatch­ utter failure. If that is not understood soon, it will be too late er and Bush will have sown a long, bitter hatred of Russia to correct it . towards the West, and our children will pay dearly for it.

66 National EIR May 21, 1993 Music Views andReviews by Katby Wolfe

Eve Queler presents This presents a dramatic problem, be­ mantic subplot, but to reveal Anne's a bel canto gem cause Donizetti intended two distinct inner venality. voice types in order to show us two "AnnaBoLena, " by Gaetano Don­ different moral qualities. izetti; Opera Orchestra o/ New York, Compassion llwakens Eve QueLer, Music Director Christian love Classical drama Kudos are due to conductor Eve Quel­ After Anne, we see the members of er for breathing new life into Gaetano Anna BoLena was Donizetti's firstsuc­ the court, each more venal and selfish Donizetti's masterpiece drama of the cess in 1830. The New York perfor­ than the next. The pageboy Smeton Tudor Renaissance, Anna BoLena, at mance made clear that a great opera and his puerile infatuation for the Carnegie Hall on April 7. While the has found a little public, to paraphrase queen, which ruins her, are metaphor opera is being generally revived in Schiller. This fine work has been for the whole court, each of them a concert productions in several cities, wildly underappreciated by both illit­ selfishchild . Lady Jane Seymour tells this particular New York performance erate producers and audiences since us plainly that, while she's upset should make it clear that the Metropol­ the tum of the century. Anna Boiena about hurting her friend Anne, what itan Opera and other companies are was very popular from 1830 to 1870, she really wants is "love and glory ," missing the boat by not staging it regu­ when audiences were better educated. i.e., Henry as a Sex object and his larly. To reduce it, as commentators do, throne. Percy is swayed by each pass­ Carol Vaness in the title role of to the sad story of Queen Anne Bol­ ing emotion, witll1 no self-control. Henry VIII's second wife Anne Bol­ eyn, jilted by the venal English King Next to these, the : murderous Henry eyn (Anna Bolena) contributed much Henry VIII for her distracted friend looks at home. to its success, her magnificent Italian­ Lady Jane Seymour, shows a brain What makes Anne Boleyn a hero­ ate soprano rounded from the lowest shriveled by too much TV soap opera. ine is that she alone changes, and be­ notes to the highest coloratura. Dra­ Donizetti, as Verdi after him, was en­ comes a better person, by realizing matic mezzosoprano Melanie Son­ gaged in deep study of the German that all are doing wrong, and by re­ nenberg in the "pants" role ofthe page republican and dramatist Friedrich penting. Smeton also sang gloriously. Schiller and his theory of Universal Anne's shift occurs at the point One could not, however, help History . Donizetti here shows us all she feels Christian charity, firstawak­ mentally recapitulaing the perfor­ the reigns of the Tudor monarchs. ened by love for lI1er friend Jane, as mance later, after the master class on Had Donizetti shown us this liter­ Anne realizes witlt horror that Jane lowering the pitch back to Verdi's A- ally, Anna BoLena and his subsequent, will suffer the same fate as she, when 432 by tenor Carlo Bergonzi, held related Schiller operas Maria Stuarda Henry's eye roves ;again. As Jane de­ next door in CarnegieHall 's Weill Re­ (1833) and Roberto Devereux (1837) scends lower and lower into her pas­ cital Hall on April 8. Bergonzi demon­ would have been merely didactic. In­ sions, and urges Anne to lie to save strated, for example, that a mezzoso­ stead, Donizetti constructed the dra­ her skin, Anne rec.lls how she herself prano who sounds like a soprano at ma classically, so as to force us, the had stolen the hu�band of Catherine "standard New York pitch" of A-442 , audience, to come to these conclu­ of Aragon. She realizes that so long can blossom to a distinct mezzo color sions in our own minds. as people act this way , there is nothing at A-432, the pitch of Donizetti, Ros­ The point is not that Anne Boleyn to prevent the vicipus cycle from re­ sini, and Verdi . is a wronged heroine: Anne herself is peating. Young Italian mezzo Gloria Scal­ grandly corrupt. She used sex to cause We see, throughher eyes, a vision chi, singing the fiendishly difficult the destruction of Henry's first wife, of England past, present, and future: role of Anne's friend and rival Lady Queen Catherine of Aragon, and not the cycle of sin whJich must be broken Jane Seymour, would have benefitted out of any love for Henry as a man, by Christian charity, as Anne tells us greatly by Donizetti's original pitch, but out of lust for the throne. That is at the end; but since she has realized for she often sounded simply like an­ Donizetti's reason for . presenting it only after settifl.g England on the other soprano next to Miss Vaness. Anne's real lover, Percy: not for ro- road to destruction, she must die.

EIR May 21, 1993 National 67 Congressional Closeup by William Jones and Carl Osgood

C ommittee rejects patent er, earning her a spot in the runoff. lation, and directed that anticipated for Confederate insignia Hutchison and Krueger each received costs of environmental regulations be 29% of the vote. offset. The Senate Judiciary Committee re­ Two other Republicans, Reps. Joe In other developments, the envi­ jected on May 6 a request to renew the Barton and Jack Fields, each received ronmentalist profileof the Clinton ad­ design patent for the insignia of the 14% of the vote, finishing third and ministration was enhanced by the ap­ United Daughters of the Confederacy. fourth , and it is unlikely that these pointment of two key members of the The UDe's design patent has votes would shift to Krueger. If the notoriously zero-growth World Re­ come up for reauthorization every 14 Republicans win the Texas seat, Dem­ sources Institute: Gus Speth, the for­ years since the organizations's found­ ocrats will be reduced to a 56-44 ma­ mer WRI president, to be head of the ing in 1894, and had been approved jority in the Senate . A Republican vic­ U.N. Development Program, and Jes­ unanimously by Congress each time. tory would also be touted as indicating sica Tuchman Mathews, former WRI This time, however, freshman Sen. dissatisfaction with the Clinton presi­ vice president, to be deputy undersec­ Carol Moseley-Braun (D-Ill.) found dency, propaganda which may be retaryfor global affairs. the symbol, which features the flag of heeded by Democratic legislators who the Confederacy, a glorification of the are already wary of supporting the fight for slavery. President's program on a number of Moseley-Braun told the commit­ key issues. tee that the patent was not necessary esolution seeks and that the descendants of slaves held R intervention into Sudan as human chattel under the flag of the Senate resolution 94, sponsored by Confederacy have to honor their an­ Paul Simon (D-Ill.) and discussed in cestors by asking if the logo is appro­ enate approves EPA hearings in early May, condemns priate. "The Ku Klux Klan under­ S as cabinet position "egregious human rights abuses by the stands the meaning of the symbols of The Senate on May 4 approved an ad­ goven!lment of Sudan" and calls on the Confederacy when they raise the ministration-backed bill to make the President Clinton to mount the same Confederate banner at their marches Environmental Protection Agency kind ofre lief operation that was done and rallies," she said. (EPA) the 15th cabinet position in the in Somalia including airlift operations. federal government. The bill was ap­ The resolution calls for an in­ proved 79- 15 after senators rejected crease in funding to non-governmen­ several proposals which would have tal organizations (NGOs) that supply Texas victory could curbed a number of governmentregu­ aid to southern Sudan, for a U.N. Se­ boost Senate GOPers lations. curity Council resolution on Sudan, The special election in Texas on June "Permanent and official cabinet­ the appointment of a U.N. Special 5 to determine the successor to Sen. level status for the EPA moves the is­ Representative for Sudan, the creation Lloyd Bentsen, who was appointed sue of environmental protection from of "internationally monitored zones Treasury Secretary by President Clin­ the margins of policymaking to the and resettlement zones in southernSu­ ton, could boost the clout of Senate center," said EPA Administrator Car­ dan in which government forces, fac­ RepUblicans, who plan to filibuster all ol Browner. In the eyes of the bill's tions of the SPLA, and militia would proposals by the Clinton administra­ sponsor, Sen. John Glenn (D-Ohio), not be allowed," and for the place­ tion not to their liking. the cabinet-level position would en­ ment of human rights monitors in ar­ Texas Gov . Ann Richardson had hance the role of the United States in eas affected by the fightingand human appointed Democrat Bob Krueger to global environmental policy. The rights abuses. Bentsen's seat until a special election measure may, however, receive sig­ Similar legislation is expected to could be arranged. But he has appar­ nificantly more opposition in the be introduced in the House by Frank ently failed to mobilize the support house. Wolf (R-Va.). The resolution is the needed to maintain his seat. In the first One measure which was voted result of a campaign which has target­ phase of the special election, GOP down would have required an analysis ed Swan for "human rights viola­ state Treasurer Kay Bailey Hutchison of the impact on the economy and em­ tions," although it is well known that received 497 more votes than Krueg- ployment of every bill or agency regu- the so-called rebellion in the south,

68 National EIR May 21, 1993 led by John Garang, has been bank­ employed as evidence that the country "I support Space Station Free­ rolled largely from the United States. is in a depression. "The percentage dom," he stated emphatically, and ad­ The increased activity of the NGOs, of the total working-age population in vised that any "new direction" should such as the U.S. Committee on Refu­ the labor force, those working or look­ "build on what we've done." In the gees, has given them more elbow ing for ajob, has, unlike previous re­ firstten years of the space program, he room to agitate throughout the coun­ cessions, failed to rise." said, we spent $180 billion in today's try . They are now demanding the es­ He called government employ­ dollars. For Freed�m, "the commit­ tablishment of a U.N. protectorate in ment statistics "fraudulent," pointing ment is much less demanding, but the south to protect their relief opera­ out that they do not reflect workers harder to fund." He, scored the Clinton tions. who have simply dropped out of the administration for ·'the clear intent to As Roger Winter, the director of labor force because they have been fundamentally redirect NASA's prior­ the U.N. committee, indicated in his unable to findaj ob . ities away from the Space Station and testimony on Capitol Hill on May 9, The chairman also berated the Re­ manned flight, in general." "either all sides must agree to a unified publicans for having sabotaged Clin­ Poking at the congressional cul­ but secular Sudan, or south Sudan, ton's "subminimal" stimulus pro­ prits in this mess, Brown said, "we along with several related margin­ gram. "The conditions in these [inner are constantly in a fightover who gets alized areas such as the Nuba moun­ city] areas are often as desperate as to redesign the Space Station-us or tains, must be partitioned from the they are in many of the poorest parts the Appropriations Committee. " balance of Sudan." of the world. It is essential to give Echoing an important feature of In testimony on the same day, As­ full support, at least, to the meager the "Woman on Mars" scenario out­ sistant Secretary of State George anemic, subminimal programs our lined by Lyndon LaRouche in a televi­ Moose warnedthat the Clinton admin­ President offers, to at least attempt to sion broadcast during the 1988 elec­ istration is now "reviewing the situa­ help these fe llow Americans. We tion campaign, Brown stated that the tion in Sudan closely" in order to need to re-energize our economy. We Space Station should be a "learning "make the determination soon on need to give our people hope that they laboratory," open to the public whether to designate Sudan a state can have a decent job, a decent future , through satellite . communications, sponsor of terrorism." and a decent life." and would provide the opportunity for Sudan has been a thorn in the side interactive, "hands-on research, sit­ for many international financial insti­ ting at home." The American people tutions since it rejected International have to be able to participate in the Monetary Fund conditionalities and program, he stressed. proceeded to achieve self-sufficiency Brown attacks cuts in agricultural production, which has in Space Station fu nding made Sudan a net exporter of food . A "risk-avoidance society" won't build the space station, Rep. George Dooley bill defends Brown (D-Calif.) told a conference of pesticide use the American Institute of Aeronautics Rep. Calvin Dooley (D-Calif.) intro­ and Astronautics (AIAA) on May 5. duced the "Public Health Pesticides Gonzalez calls economic Brown, the chairman of the House Protection Act" on April 27, to "en­ crisis a depression Committee on Science, Space, and sure that Americans are adequately House Banking Committee chairman Technology, scored the cultural shift protected against the threat posed by Henry Gonzalez (D-Tex.) blasted the that has made it almost impossible to mosquitoes and other disease-car­ notion that there is an economic re­ do anything bold in space. He said that rying pests." covery in progress. "The truth of the during his firsttwo years as committee Dooley said that because of legis­ matter is, as I have been saying for chairman, he got into a lot of fights, lation passed by Congress in 1988 re­ over a year, we are in a silent, but but it was "exhilarating." Now, he quiring the reregistrationof pesticides terrible depression," Gonzalez said, said, there is "confusion about the fu­ originally registered before 1984, in remarks on the House floor onApril ture of space programs," and he is in public health officials are in danger of 26. the position of fightingwith an admin­ losing access to manyof the pesticides Gonzalez cited the masses of un- istration of his own party. that are used for the public good.

EIR May 21, 1993 National 69 National News

Insurance Corp. (FDIC) officer Dennis Ad­ Soviet Union, China, India, and Brazil, is a ams in Chicago. The FDIC is the receiver 'monster country,' ungovernable because it for the defunct First State Bank of Regent, is simplr too big and diverse to be run from 'Independent' blasts whose president, Paul Richter, has been a single fapital city . The states, on the other convicted of fraud and deceit in at least one hand, are mostly too small to become viable deconstructing of U.S. civil suit. The Zenkers successfully fought · indepenl!lentunits ." The May 5 issue of the London Independent efforts to seize their farm earlier by joining Pro�se continued, Kennan "claims the devotes two articles to attacking the rage for with the Food for Peace organization to ex­ false premise in all domestic debates-be it "deconstructionism" and "political correct­ pose FDIC collusion with unscrupulous in­ health care , drugs, abortion, or whatever­ ness" (PC) that has swept the United States. ternational banks to loot family farms. is that any one policy either could or should One , by Bryan Appleyard, comments on "The Zenkers are the victims of fraud suit all parts of the continent. Virtual dis­ ideas of Australian-born art critic Robert perpetrated by their former banker," de­ memberment is the only long-run solution; Hughes, whose book Culture oj Complaint clared a Food for Peace representative. it woul� have the advantage, he says, of has attacked both the left-wing "politically "Richter was making fraudulent loans to allowing southern regions tomerge into Lat­ correct" movement and its conservative farmers, and the Farmers Home Adminis­ in America. (Actually this idea does have counterpart, for driving the United States tration (FmHA) was guaranteeing these some suvport: In the Pacific Northwest pun­ toward "cultural suicide." loans with taxpayers' money. dits hav� pondered the feasibility of hiving Appleyard summarizes Hughes's attack "Richter was in cahoots with Minneapo­ off a few states and creating a separate coun­ on "deconstructionism" as follows: "The lis banker Carl Pohlad . . . [who] bought trycalled 'Cascadia')." present becomes a historical autocracy, dic­ many of these fraudulent loans knowing tating standards, interpretations and even they were deliberately programmed to fail. facts. We have no need to be humble before Pohlad then cashed in the guarantee with the the past because we make it up as we go federal government, and got paid off in full, along. Here PC meets the deconstructionist plus interest. In the Zenker case, the FmHA Fireworks over 'gays' in wave that has swept American academia. handed about $258,000 of taxpayers' mon­ There are only versions of the world, com­ ey over to Rabobank of the Netherlands. N. Y. i Israel Day parade "The courage of the Zenker family in peting discourses, and since that is all there QuestiOl).: When can't a rabbi march in the publicly fighting this fraud caused a lot of is, there is no final jury that can indict any Israel parade? Answer: When she's a other farmer-victims to step forward," the . single interpretation." lesbian . representative said. "As a result, two U.S. However, in distinction to Hughes, The backbiting was ferocious over the congressmen called for a moratorium on Appleyard maintains that political correct­ May 9 lIlew York City parade for Israel's farm foreclosures and an investigation of ness may well be "the logical outcome of 45th an�iversary. An agreement had been guaranteed loan fraud. A resolution calling liberalism rather than its perversion. " reached by parade organizers to allow ho­ for a congressional investigation of bank The second piece, by U.S. correspon­ mosexuats to march under the banner of the fraud passed the North Dakota House of dent Rupert Cornwell, focuses on "the luna­ reform Zionists , but only if they kept the Representatives, and was co-sponsored by cies of political correctness," as represented agreemept secret. Then the lesbian rabbi of 25 state legislators in South Dakota." by the University of Pennsylvania campaign Beth Simchat Torah talked about it to the to discipline Jewish student Eden Lefkowitz New Yo,* Times-so the deal was off. for screaming "water buffalo" at black The uncloseted homosexuals were women students who were making too much banned from the main event, and had to noise outside his window. Cornwell says march in their own para de. that the school's effort to make Lefkowitz Brit backs Kennan on According to the New York Post, New undergo a seminar in "racial sensitivity," is York's �liticos were in a wild scramble for reminiscent of "what was once known in the balkanizing United States the most politically advantageous appear­ old Soviet Union as 'political re­ The London Financial Times's Michael ances: education.' " Prowse called George Kennan's new book, Gov j Mario Cuomo, Mayor David Din­ Around the Cragged Hill: A Personal and kins, CitlyCouncil President Andrew Stein, Political Philosophy, "wonderfully re­ and Republican mayoral candidate Rudolph freshing," in a review that appeared on May Giuliani marched in the main parade, and 10. Prowse gave high praise to one of Ken­ also stoRped by the homosexual Congrega­ FDIC seizes Zenker farm nan's main suggestions, which, he says, is tion BetJ1 Simchat Torah to pay their re­ "too bold to be taken seriously in Washing­ spects. machinery in vendetta ton." The Kennan plan is for "the division Democratic mayoral candidate Herman Hettinger County, North Dakota Deputy of the U.S. into 12 largely self-governing Badillo and Congress of Racial Equality Sheriff Gilbert Mayer seized machinery republics, such as 'New England,' the 'Old "conservative" Roy Innis marched for Is­ from the farm of Vern and Kay Zenker on South, ' the 'Northwest,' and so on. He ar­ rael, but refused to visit the homosexual May 6 on orders from the Federal Deposit gues that the U.S., along with the former synagogue.

70 National EIR May 21, 1993 Brilifly

• THE ENERGY DEPT. issued a Former Mayor Ed Koch marched only wood's Dark Prince, by Marc Eliot. A simi­ list of "accomplishments" for the first with the gay Zionists, and boycotted the lar report on the book appeared the same 100 days of the new administration. "bigoted" mainstream. day in the New York Times . Reuters further The 22-page document written in Sen. Alfonse D' Amato (R) couldn't de­ reported Eliot's charges that Disney was a "greenspeak," boasts of Secretary cide what to do, so he used the excuse of Nazi sympathizer who attended many Nazi Hazel O'Leary's "money jar," into Mother's Day to spend the Sunday with his Party meetings and rallies during the 930s. I which anyone who uses "bureaucrat­ mother. According to the New York Times, Dis­ ic acronyms" in her presence must A Catholic columnist at the Post ridi­ ney was made a "full Special Agent in donate a quarter. Also, classes on culed Dinkins and Stein for marching for Charge contact" of the FBI in 1954--usual­ "diversity" will be added in the work­ Israel after having boycotted the St. Pat­ Iy a trusted informer who could provide place curriculum; rick's parade over the exclusion of a homo­ transportation and equipment as well as pub­ sexual contingent. lic relations services for the Bureau. Eliot • LEONEL HERRERA was exe­ claims that he found the evidence in 570 cuted in Texas on May 12. Herrera's pages of heavily censored government doc­ habeas corpus appeal to the U.S. Su­ uments obtained under the Freedom of In­ preme Court, basedon new evidence formation Act. The Times added that its own proving his innocence, was denied investigation left "no doubt that the material Oakland council passes Jan. 25 in a ruling that held that inno­ submitted by Mr. Eliot is authentic." anti-Pike resolution cent persons who have been convict­ ed of murder may be executed with­ The Oakland, CaliforniaCity Council unan­ out violating the Constitution. imously passed a resolution calling for the removal of the Albert Pike statue in Wash­ • MARIO CUOMO signed an ington, D.C. early this month. Albert Pike, Space command ignorant agreement last month with the Onei­ a Confederatt? general , was a founder of the da Indians, allpwing New York Ku Klux Klan. The statue commemorating of Russian SDI offer State's first gambling casino to open him was erected by the Scottish Rite Free­ At the annual meeting of the American Insti­ this summer in New Rome, Oneida masons, of which Pike was a leading mem­ tute of Aeronautics and Astronautics in early County. The agreement comes at a ber, in 1901 and is maintained by the federal May, Air Force Gen. Charles Homer, the time when the area faces heavy job government. Its removal has become an in­ head of the U.S. Space Command, gave an losses because operations at nearby ternational cause celebre, largely due to the impassioned plea for more emphasis on bal­ Griffiss Air Force Base are being re­ efforts of associates of Lyndon LaRouche. listic missile defense. During the Gulf war, duced. Gambling proponents claim The Oakland resolution, introduced by he related, when missiles were shot down, the casino agreement will create Nate Miley, read in part: the debris fell back on the defenders. What more than 2,000jo bs. "Whereas, it is the sense of this Council is necessary, he said, is wide-area defense, that a statue which represents one who advo­ which is only obtainable from space. When • MARY SUE TERRY, who is cates mass murder, terrorism, kidnapping people object that they don't want weapons being groomed as Virginia's next and torture, designed especially to disen­ in space , Homer said, he tells them that "the governor, is best suited to be a morti­ franchise and re-enslave newly freed Afri­ weapon in space is the warhead on the cian, according to a "career aptitude can-Americans should not be honored with ICBM, not the interceptor." "Other coun­ test" she took in high school, a recent a memorial. ... tries need ballistic missile defense, too," he profilein the Washington P osf report­ "Be it resolved: that the City Council of stressed, and stated that there had been dis­ ed. She apparently also showed a Oakland, California urges the President of cussions between Yeltsin and Bush on joint youthful talent for tobacco spitting the United States to remove the statue of Al­ defense; but he didn't know about talks with and castrating pigs. Unmentioned is bert Pike, Grand Dragon of the Ku Klux Clinton. He said that there should be a lay­ the fact that as state attorney general, Klan, as requested in the resolution of D.C. ered defense for ballistic missiles and de­ she presided over so many executions Councilmember William P. Lightfoot. . . ." nounced efforts to trade off ground and that she was nicknamed "Bloody space systems. Mary ." When asked by 21 sf Century Science & Technology Associate Editor Marsha Free­ • THE HEMLOCK Society in man for his evaluation of the recent Russian Washington State has started a group Walt Disney was FBI proposal for ajoint SOl experiment, Homer called "Compassion in Dying," said that he had never heard about the offer. which provides belp to the allegedly agent, Nazi supporter However, he stated that he thought there terminally ill to kill themselves. "Mickey Mouse, a Nazi storm trooper? should be close work with the Russians Their "help" is based largely on the Donald Duck, an FBI informer?" So begins without the worry of technology transfer, practice of "Dr. Death" Jack Kevor­ a May 6 Reuters wire, reporting on a forth­ since we would not hold each other's nations kian in Michigan. coming biography, Walt Disney, Holly- at risk if there were a joint defense.

EIR May 21, 1993 National 71 ::

Editorial

Time to get going onfusion

The Clinton administration has an opportunity to re­ things to many people." verse the policies of the two previous administrations, There is also the need to reinvigorate the national and allow thermonuclear fu sion research to move for­ fusion program , the committee says, by designing and ward . In 1980, the Congress passed and President Car­ building a machine to supersede the TFfR. The pro­ ter signed into law the Magnetic Fusion Energy Engi­ posed successor is the Tokamak Physics Experiment neering Act, legislating that producing vast amounts of (TPX) , which will address scientific and technical energy using components of seawater for fuel merited questions which could permit the tokamak to be a a level of effort which would allow it to develop new smaller device than present 'engineering would permit . fusion energy technologies. But neither the Reagan nor There is also a proposed change in policy , which Bush administration supported a level offunding which would reestablish research . and development work in would have allowed the fusion program to advance. concepts other than the maihline tokamak design. Due Today , the magnetic fusion energy program has a to budget cuts, the Department of Energy made the budget which is one-halfof what it was in 1980, in real decision a couple of years ' ago to stop work, and in dollars . No wonder that fusion scientists as well as some cases shut down operating machines, which were congressional representatives feel that the program is promising, but less advanced. , than the experiments not going forward , and are proposing various, some­ using tokamaks . times counterproductive, solutions. Dean chaired a panel for the advisory committee One danger is that history will repeat itself yet which examined these non�tokamak "alternative con­ again, and the new administration will want a new cepts ." The panel recommended that a modest, but "review" of the fusion program . Such a review is un­ inviolable, budgetary commitment be made to con­ necessary , and simply wastes precious time. cepts which were under development in the past-such Dr. Stephen Dean, president of Fusion Power Asso­ as the stellarator and rever sed-field pinch-as well as ciates, stated in an interview which will appear in the innovative concepts which are more risky but may be Summer issue of 21st CenturyScience & Technology promising. It recommended that a specific amount of magazine, that the Fusion Energy Advisory Committee money be earmarked in the budget each year. This (FEAC) of the U.S. Department of Energy (DOE) has could 5-25% of the budget, Dean explains, but would prepared a series of reports for priorities and budget be set and adhered to. requirements in the fusion program . Less thoughtful proposals have been made by fru s­ A decade ago , the Tokamak Fusion Test Reactor trated fu sion supporters in; the scientific community (TFfR) located at Princeton University was scheduled and Congress. One is to shut down the entire fusion to complete the task it was designed and built for-to program , except for the research for the ITER project. produce up to 10 megawatts of thermonuclear fusion That way, they say, at least something would finally energy, using a donut-shaped tokamak machine, by get done. There is also a proposal for the opposite burning deuterium and tritium fuel (isotopes of hydro­ approach-stop work on the tokamaks and end partici­ gen). The firstpriority of the program, the FEAC states, pation in the ITER, so that money can be put into is to perform those tests this year. another approach. The second priority is to participate in the design of The only program that will produce breakthroughs the InternationalThermonuclear Experimental Reactor in fusion is the balanced one that Dean describes. Just project (ITER) , which is being planned by the United as the space program has been faced for years with States, western Europe, Japan, and Russia. Th is is en­ budgets that do not adequately support both Space visioned to be a very large tokamak device, partly be­ Station Freedom and innovative space science experi­ cause, as a "consensus" machine to be built with the ments , the solution cannot be to support one part of a participation of many nations, it will have to be "many program by lopping off parts of others .

72 National EIR May 21, 1993 SEE LAROUCHE ON CAB L E TV

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