Bridge Across Jordan GEORGE BUSH THE UNAUTHORIZED BIOGRAPHY by Amelia Platts Boynton Robinson

From the civil rights struggle in The truth about George the South in the 1930s, to the Bush-in print for the first Edmund Pettus Bridge at Selma, time: "During late 1989 and Alabama in 1965, to the 1990, George Bush trave'rsed liberation of East Germany in 1989-90: the new edition of the a decisive watershed in his classic account by an American political career and in his own heroine who struggled at the personal mental life.. .. The of Dr. Martin Luther King and whining accents of the wimp today is fighting for the cause of Lyndon LaRouche. were now increasingly supplanted "an inspiring, eloquent by the hiss of frenetic spleen.. memoir of her more than five There were still traces of method decades on the front lines .. in George Bush's madness, but J wholeheartedly the central factor was now it to everyone who cares the madness itself." about human rights in America. "--Caretta Scott $ 20 plus $3 shipping and handling

$10 plus postage and Order from: Visa and MasterCard accepted. handling ($1.75 for the Virginia residents please add first book, $.75 for each Ben Franklin Booksellers 4.5% sales tax. additional book). Virginia 107 South King Street residents add 4.5% sales tax. Make check or money Leesburg, Virginia 22075 Ben Franklin Booksellers order payable to Ben Telephone (703) 777-3661 107 South King Street Leesburg, VA 22075 Franklin Booksellers. Mastercard and Visa accepted. PH: (703) 777-3661 FAX (703) 777-8287

A manual to stop demographic disaster

genocidalists in their own words The Genocidal Roots of (including the declassified Bush's New World Order National Security Study EIR SPECIAL REPORT Memorandum 200 of 1974, which he radical depopulation defines population growth as the lobby chalked �p a st�ategic T enemy of the United States); a VIctory by holdmg' theIr profile of Prince Philip's World "Earth Summit" in Rio in June Wild Fund for Nature; country 1992. They claim the human race and area studies; the record of the is a threat to the environment. If LaRouche movement against they prevail, we will soon have a genocide and on the positive need dying planet-a growing for population growth; the story of population of older people without depopulation in ancient Rome; a vigorous youthful population to quotes from the malthusians sustain them. As we have seen starting with Parson Malthus. already, this will accelerate the demands for euthanasia, abortion, 188 pages $250 and executions to get rid of what Make check or money order payable to: oligarchs call "useless eaters." But the truth can still win. This EIR News Service intelligence report is your weapon. p.O. Box 17390 Contents include: The history of Wa shington, D. C. 20041-0390 the depopulators; the _ MasterCard and Visa accepted Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin I Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, 'T he policies made by the United States gov�ment and others, Carol White, Christopher White Science and Technology: Carol White especially in October and November 1982, crushing Mexico, and Special Services: Richard Freeman crushing the other nations of Central and South America, have led Book Editor: Katherine Notley to the destruction of the United States itself. Now we have come to Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol the point where my policies are vindicated and the policies of my

INTELLIGENCE DIRECTORS: competitors are discredited. I do know how to stop this depression, Agriculture: Marcia Merry they do not. They are not willing to accept the policies that would Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, stop it. I am running because I can stop this depression and no other Paul Goldstein public political figure in the United States could do it." Economics: Christopher White European Economics: William Engdahl With these words, Lyndon LaRouche summed up to a Colombian Ibero-America: Robyn Quijano, Dennis Small Feature). Law: Edward Spannaus radio journalist the reasons for his electoral campaign (see Medicine: John Grauerholz, M.D. A few weeks ago, we presented his independeht bid for the U.S. Russia and Eastern Europe: Rachel Douglas, Konstantin George presidency by highlighting the vice-presidential part of the ticket, Special Projects: Mark Burdman civil rights leader Rev. James Bevel, formerly ,a top lieutenant of United States: Kathleen Klenetsky Dr. Martin Luther King. This week, we see the presidential candidate INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura himself through the eyes of an Ibero-American audience. We also Bogota: Jose Restrepo print a. handful of the latest foreign endorsements of the LaRouche­ Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen Bevel campaign which were shared with us by the campaign staff, Houston: Harley Schlanger which exemplify how this race against all ordinary odds, is seen in Lima: Sara Madueno Melbourne: Don Veitch Europe in these extraordinary times. Mexico City: Hugo L6pez Ochoa Other articles put the LaRouche political effort into a broad Milan: Leonardo Servadio New Delhi: Susan Maitra strategic perspective, notably: Paris: Christine Bierre • We print the criminal complaint, which led to the indictments Rio de Janeiro: Silvia Palacios Stockholm: Michael Ericson of four individuals on Oct. 6 for plotting to kidnap 36-year-old Lewis Washington, D.C.: William Jones du Pont Smith and his wife, who have been hounded for years by his Wiesbaden: Goran Haglund parents simply because they supported LaRouche's politics. What EIR (ISSN 0273-63/4) is published weekly (50 issues) has already come to light in this case throws a spotlight on the violent except for the second week of July, and the last week of December by EIR News Service Inc., 333112 criminality of the anti-LaRouche "Cult Awareness Network" crowd. Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) 544-70/0. For subscriptions: (703) 777- • The StrategicStudies survey of Bangladesh , one of the world's 9451. most populous nations, tackles the question of how a country's de­ European Headquarters: Execulive Inlelligence Review Nachrichlenagenlur GmbH, Poslfach 2308, pendency on aid can destabilize an entire region, and what must D-62oo Wiesbaden, 0110 von Guericke Ring 3, D-62oo Wiesbaden-Nordensladl, Federal Republic of Gennany be done to free it from the IMP straitjacket and ensure economic Tel: (6122) 2503. Execulive Direclors: Anno Hellenbroich, Michael Liebig sovereignty. In Denmark: EIR, Posl Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 • In Economics, see our coverage of Sweden and Italy for the In Mexico: EIR, Francisco Dlaz Covarrubias 54 A-3 models of austerity intended to be imposed on all of Europe: Jascism Colonia San Rafael, Mexico DF. Tel: 705-1295. Japan subscription sales: O.T.O. Research Corporalion, in the strict, historical sense of the word. Takeuchi Bldg., 1-34-12 Takalanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821. Copyrighl © 1992 EIR News Service. All righls reserved. Reproduclion in whole or in part wilhoul pennission slriclly prohibiled. Second-class poslage paid al Washinglon D. C., and al an addilional mailing offices. Domeslic subscriplions: 3 monlhs-$125, 6 monlhs-$225, I year-$396, Single issue-$10 Postmaster: Send all address cbanges 10 EIR, P.O. Box 17390, Washington, D.C. 20041-0390. -

TIillContents

InteIViews Strategic Studies Economics

28 Lyndon H. LaRouche, Jr. 20 Dead end for Bangladesh's 4 Looming banking crisis will The jailed independent presidential donor-dependent economy dwarf S&L debacle candidate speaks with a journalist Unless real efforts are made to A study by Edward W. Hill and from Colombia's Radio Toledar. undertake long-term programs, Robert J. Vaughan documents in including crucial infrastructure and gory detail what EIR has been bucking the policies of powerful reporting, that the banking crisis is Departments donors, the whole region could by no means over, as the U.S. plunge into chaos. An analysis by government's "experts" claim. 16 Report from Bonn Ramtanu Maitra in New Delhi. An anniversary tasting quite bitter. 6 Fascist austerity: Sweden 25 The assassination of Sheikh once, again the 'model' for 17 Dateline Mexico Mujib Europe Denying the crisis makes it worse. The arrests in September of two leaders of the Freedom Party-the 8 Behind the assault on the professed killers of the country's 72 Editorial lira, masonic maneuvers founding father-(:ould have a Will LaRouche get justice? target Italy resounding impact. Prime Minister Amato wanted to save gobs of money by cutting health care and pensions, but he Photo credits: Cover, Dana may get a revolution instead. Scanlon. Page 29, Foto Hennanos; (inset) NSIPS. Pages 13, 60,63 , 10 Asian development means Stuart Lewis. the International Monetary Fund must go

Correction: Due to a printer's 12 Zimbabwe trapped error, the map indicating the in location of Cameroon in Africa was satanist economics omitted from the article on p. 9 of the Oct. 9 issue. Although it 13 Currency Rates appeared in Vol. 19, No. 29, it was . not really the editors ' intention to 14 U.S. Unemployment ask readers to look it up! Coverup

15 Agriculture Low farm income is good?

18 Business Briefs Volume.':1,.,: 19,• Number41, "; October 16, 1992

Feature International National

38 Brazil's new President 54 Austerity �i11 drive next stands up to Wall Street administradon, say elites President Itamar Franco faces two The Center for Strategic and essential tasks: reviving the national International Studies in Washington economy, and restoring the has produced a new report that intelligence and security functions recommends slashing the federal of the Brazilian state, damaged by deficitby an a$tounding $2 trillion ousted President Collor's alignment over the next decade. This is the with the Anglo-Americans. program of the U.S. policy elite for Make this picture come true: Lyndon LaRouche in whoever is elected President in freedom. 40 Is the ADL concealing November. Collor's 'international 28 LaRouche: 'I do know how connection'? 56 D.C. rallies led by Bevel to stop this depression' Documentation: A letter to the have powel,'ful impact In an interview broadcast by Radio daily Folha de Sao Paulo by EIR's Toledar of Colombia, Lyndon correspondents . 57 Bankrupt states turn to LaRouche tells why he is running short-term loans for President, and why Henry Kissinger will do anything to keep 41 Argentines found new him in prison. nationalist movement 58 Grand jury indicts 'Get LaRouche' kidnaping ring Documentation: 30 Who is· Lyndon LaRouche? 42 How the communists From the Criminal Complaint in the federal A thumbnail biography of the poisoned the West with case against Donald L. Moore, E. candidate. slanders against LaRouche Newbold Smith, Galen Kelly, and Part 1 of a series by Anno Robert Point. 36 More Europeans voice Hellenbroich on the East German support of LaRouche Stasi's disinformation specialists . 63 Billington goes to jail facing Three statements issued in early 77 years October by: Italian Senator 45 Shining Path launches Carmine Mancuso, head of the "La terror to free Guzman Rete" anti-mafia political party; 64 LaRouche program is Father Michael Beer, former 46 'Indigenism' is an assault under scrutiny in Russia director of the Fatima World on Indians and national Apostolate in Germany; and the sovereignty 65 POW-MIA coverup Organization of the Ukrainian Threat of violence grows against exposed despite Senate National Rukh in Moscow. the Oct. 12 celebration of hearings Columbus quincentenary . 67 Kissinger Watch 48 Moscow: Power shift The emperor's new clothes. against IMF takes effect, but imperial danger grows 68 Congressional Closeup

50 An appeal from the 70 National News government of Bosnia and Hercegovina

52 International Intelligence .. �TIillEconomics

Loomingb anking crisis will dwarfS&L debacle

by John Hoefle

The u.s. banking crisis, which for months had been falsely Management and Budget in January 1992. portrayed as "solved" by governmentofficials and the press, The Vaughan-Hill study contends that banks can expect has suddenly risen from the grave, and is once more stalking to lose 80% of the value of thelr repossessed real estate and the financial and political markets . of loans more than 90 days past;due, and to lose 60% of their The latest outbreak of publicity about the banking crisis, loans that are delinquent less than 90 days or that have been which has in reality been steadily getting worse, revolves restructured. They also project losses of 20-40% on all other around a study prepared by Edward W. Hill, a professor at real estate loans, even those which are currently being paid Cleveland State University, and banking authority Roger J. on time. Vaughan, of Santa Fe, New Mexico. The Hill-Vaughan A taxpayer bailout of the banking system is well under study, which is being published by the Washington Post, way, but the cost will be meas�ed in trillions, not billions, presents the bleakest assessment to date by any of the estab­ of dollars. But the contention of the study that more than lishment-certifiedbanking analysts of the U.S. banking sys­ 80% of U.S. banks are healthy, is nonsense. tem. But the study, which would have you believe that less The problem is not with a !handful of banks, or even a than 20% of U.S. banks are in trouble, is just another in a couple of thousand banks. The! problem, as EIR has repeat­ long line of studies designed to hide the extent of the crisis. edly documented (see EIR , Jarl. 10, 1992, "Why the Panic The study, entitled "Banking on the Brink," wams that a Over the U.S. Banks Is Justified"), is that the entire banking taxpayer bailout of the banking system is "virtually certain," system is insolvent. The bank� have been overwhelmed by and that by refusing to recognize the seriousness of the prob­ the depression. Real estate valu�s have collapsed dramatical­ lem, the governmentis in danger of repeating the steps which ly, the level of non-payable lo�ms has skyrocketed, and the led to the S&L debacle. enormous speculative bubble df' off-balance-sheet activities The study says that were the banks to accurately reflect has popped. their financial condition, "more than 1,000 of the nation's The only thing keeping the banks afloat at this point is banks would be judged insolvent," and "perhaps I ,000 more politics. The Bush administration has bullied federal banking on the lip of insolvency." But the remaining 10,000 banks, regulators into adopting a virtual "no such thing as a bad the study claims, are "strong, profitable and internationally loan" policy, allowing banks to carry as performing loans, competitive. " those which have no chance of being paid back. Loans which cannot be repaid, are simply being rolled over or restructured Bailout estimates double when they come due, preserving the illusion that they are The study estimates iliat the cost of bank failures could viable. In addition, the banks are carrying real estate loans run as high as $95 billion, nearly double the worst-case esti­ on their books at completely unrealistic values, .as if real mate of $48 billion made by the Federal Deposit Insurance estate values had not dropped 25-50% nationwide. The result Corp. a year earlier, and significantly higher than the highest is a dramatic understatement about the extent of the banks' governmentfigure , the $72 billion projected by the Officeof loan losses, and a corresponding overstatement about the

4 Economics EIR October 16, 1992 • banks' income. It is a virtual replay of the S&L fiasco, but latory corruption, U.S. banks have �en able to report "re­ on a vastly larger scale. cord profits" of $7.6 billion in the lfirst quarter and $7 .9 billion in the second quarter of 1992. But this illusion of Banks spoon-fed profits solvency is coming to an end, as the deepening depression At the same time that the bad loans are being covered up, destroys the ability of governments and central banks to ma­ the banks are getting a massive gift from the government and nipulate the financial system. One after another, the bailout the Federal Reserve, in the form of lower interest rates. The operations are unraveling. lower rates allow the banks to increase the spread between what they pay for money and what they charge for the money Bailout operations unraveling they lend. This extra interest rate income the banks report as A prime example is the collapse of Olympia & York, the profits . giant real estate developer which is nowin bankruptcy. 0& Y The most striking example of the secret bailout of the was in many respects a bailout operation, funded by the banks banking system, is the way the banks are being spoon-fed to artificially revive the foundering.·real estate markets in profits by the Fed and the Treasury through the market for North America and Britain. Backed by billions of dollars in Treasury securities. The scam works like this: The banks loans from the banks, O&Y acquired and developed numer­ borrow money from the Fed at 3% interest, then tum around ous properties in New York City during the 1970s and 1980s and buy Treasury securities that pay 8% interest with the helping, along with similar creations such as Donald Trump, money. That gives the banks a 5% profit, without any risk to pump up the deflating New York real estate bubble. 0& Y and without the need to make loans in the economy. As a also took over the foundering Canary Wharfpro ject in Lon­ bonus, the banks are not required to set aside any equity don, Europe's largest office development. capital against these Treasury securities, whereas they would But now O&Y has collapsed, and with it the illusion of have to set aside $4 in capital for every $1()() in business viability of the New York, Toronto, and London real estate loans. So they rake in money from the governmentto bolster markets. The banks will lose not only the money they lent to their profits, while making their equity capital position look 0& Y, but also the money they lent to other companies, using better. In the words of Sen. James Sasser (D-Tenn.), "In artificially inflatedreal estate as collateral. effect, the taxpayers are bailing out the banks." The collapse of the big real estate operators leaves no one The size of this bailout is staggering. At the end of June, leftto buy up all the real estate which has been dumped on for the first time in 27 years, the amount of government the market. That, in tum, is furtherdriving prices down in a securities held by banks ($607.3 billion) surpassed the self-feeding process which will not end until real estate val­ amount of their commercial and industrial loans ($598.5 bil­ ues reach a level which can be supportedby genuine econom­ lion). During the previous 12 months, the banks' holdings of ic activity, which means that many of the commercial office government securities rose 21 %, some $105 billion, while projects are headed for declines of; up to 80% from their the banks' C&I loans fell 4% . During that same period, loans purported values at the height of the bubble. to individuals fell 2.9% and total loans fell 0.7%. That spells doom for the banks, which have some $858 In fact, for many banks, especially the larger ones, the billion in nominal value of real estate loanson their books. A main source of income comes from trading in securities, drop in value of just 30% on the banks1 realestate loans, would speculating on currency fluctuations, and other activities be more than enough to wipe out the banks' claimed $248 more akin to placing bets in a casino than traditional banking. billion in equity capital. And that drop has, in reality, already The 10 largest U.S. banks made 77% of their reported profits occurred, leaving the banking system,las a whole, bankrupt. from such trading in 1991. The preference of the government and the bankers is to This shiftto casino-style speculation has led to an explo­ let the crisis remain out of the public eye until after the sion in the level of banks' so-called off-balance-sheet liabili­ elections. They would rather that th¢ discussions take place ties, a category which includes various types of futures trad­ in the back rooms, since they all agree that the taxpayer must ing, letters of credit, loan commitments and the like. In 1984, ultimately pay to bail out the banks, and such admissions are according to the General Accounting Office, U.S. banks had bad form in an election year. $1.364 trillion in off-balance-sheet liabilities. By 1985, that But such a cutoff of public disclJssion only hastens the figure had risen to $1.8 billion, equal to 67% of all bank coming collapse, since neither the b$kers, the government, assets. By September 1991, according to a study by Weiss nor the regulators have the resources to keep the system Research, the 20 largest U.S. banks had off-balance-sheet afloat. By hanging on to a dead system, they are foreclosing liabilities of $6. 1 trillion, or 697% of their $899 billion in the possibility to shift to policies which could revive the reported total assets. Citibank led the pack with $1.381 tril­ economy. No matter how much the governmentand bankers lion in off-balance-sheet liabilities-more than the entire loot the public, they will not be able to put their financial U . S. banking system had just seven years earlier. system back together again, and the harder they try,the worse Thanks to governmentgifts , false accounting, and regu- the situation will get.

EIR October 16, 1992 Economics 5 Fascist austerity: Sweden once again the 'model' for Europe by Tore Fredin

Tens of thousands of Swedes took to the streets on Oct. The intention is to finance this 18 billion krona cut in 6 protesting sweeping cuts in the nation's welfare system. revenues by decreasing consumption. The shortfall will be Ironically, the demonstrators, organized in the National compensated for by cutting two days from paid holiday time, Trade Union Confederation (LO), traditionally of Social a 3% increase of the value added tax (V AT) on food, and Democratic affiliation, were protesting not merely against cancellation of an already-decided decrease in the VAT in the liberal-conservative coalition government, but de facto other areas. Rents are also expected to rise 10% over the next against their own political leadership as well. For it was only year. thanks to the backing of the opposition Social Democrats, The way in which this 5% reduction of the employers' that conservative Prime Minister Carl Bildt, within 10 days fee on labor costs is to be financedis described as an internal in late September, could push through two austerity packages devalution. This is the content of a national handshake be­ in response to the recent financial and currency instability. tween the government and the, Social Democratic opposi­ The austerity presented by the government is in principle tion-an ever faster erosion in the standard ofliving of Swed­ nothing new, it is just meaner. The cuts have gone deep into ish wage earners, which over the last 15 years has already the welfare and social security system, supposedly to show lost the equivalent of two months' purchasing power out of that the Swedish establishment is determined to defend the an annual wage. The latest offer, in this respect, is that by a Swedish krona at all costs. company in northern Sweden which is giving its employees In the process, the "conservative" government is collabo­ the choice between a 20% wage cut or being laid off. This is rating with the opposition Social Democrats to enforce the seen as a test for how far the austerity can be pushed. worst of both worlds: The governmentis fulfillingthe Social Democratic dream of nationalizing the banks, and the Social Prologue to the crisis Democrats are backing the free marketeers' dream of goug­ One year ago, the Swedish banking crisis came into the ing the living standards of the working population. In one open. It was just afterthat that the Social Democratic govern­ speech to the Oct. 6 demonstrators, the chairman of the trans­ ment was voted out and replaced by a liberal-conservative port workers warnedof a split of the Social Democratic Party , coalition government. The firstbank to be bailed out was the as a result of the consensus of the established parties to im­ state-owned Nordbanken. The second was F6rsta Sparban­ pose austerity to save the banks. ken, a savings and loan institution which was and is con­ Unfortunately, this will be looked to as the "model" for trolled by the Social Democratic nomenklatura, and which the enforcement of International Monetary Fund (IMF)-dic­ went bankrupt in October 1991. tated austerity throughout Europe in response to the worsen­ The free market, non-interventionist Prime Minister ing worldwide depression. Bildt thought he could let the bank go bankrupt and at the same time give the Social Democrats a political black eye. Cutting consumption Little did Bildt know. While att¢nding the IMF annual meet­ Part of the package is a 5% cut in the employers' fee, ing in Bangkok, Thailand, he got a telephone call from Swed­ which employers pay to the state for each employee as a ish Riksbank head Dennis, telling him that internationalcon­ special wage-tax. This cut was incorporated into the second siderations demanded that no free market "fundamentalists" package the day afterit was proposed by Bengt Dennis, the could be allowed to destabilize international finances by let­ head of the Swedish Riksbank (central bank), who claimed ting a bank go into bankruptcy. that the markets were demanding the step as a means to Bildt thereupon bailed out the bank with taxpayers' mon­ cut labor costs in order to increase competitiveness of the ey, and, since then, bailouts have been the policy of this Swedish export industry , to increase market share interna­ non-interventionist government. So far, the governmenthas tionally. bailed out Swedish banks for '50 billion krona, and this,

6 Economics EIR October 16, 1992 according to conservative estimates, is only one-fourth of (the difference) of almost 20%, which kills any productive what the state will have to pay in the end. According to investment in industry or agriculture. financial analyst Prof. J. Lybeck writing in the Sept. 26 Svenska Dagbladet, the Swedish banking crisis will reach its A sane voice peak next year, and all Swedish banks will be nationalized One of the few sane voices from:the Swedish establish­ by 1994. ment, the head of the giant Swedish�Swiss company ABB, This seems to be the irony of history. Here, Sweden has Percy Barnevik, is warning that Swedish industry will be got one of its only non-socialist governments in 60 years destroyed if this crazy monetarist pollcy is not stopped. Bar­ (except for the interlude between 1976 and 1982), and this nevik has incessantly in the last year called for infrastructure new governmentwill end up nationalizing the banks because programs to develop eastern Europe. He has repeatedly of its monetarist obsession. Nationalization of the banks is warned that if we do not act now, we will end up with 50,000 the policy which the Conservative Party has always accused Russians camping outside Stockholm. the Social Democrats of harboring. Why is an obviously insane policy being pursued by a coalition of parties which present themselves as protectors Phase two: austerity of Swedish agriculture and industry? One explanation is, that This year-long banking and financial crisis in Sweden by keeping Bengt Dennis, a well-known Social Democrat, as entered phase two during the recent turbulence on the interna­ head of the Riksbank, this new liberal-conservative coalition tional financial and currencies markets. The Swedish krona, government made very clear, in spite of what they were one of the weaker European currencies, became a target for saying, that they will continue a policy of anti-industrial a run which was mainly carried out by 10 bit Swedish export monetarism, just as the Social Democrats did during the industries' financial subsidaries, five Swedish banks, and 1980s. This policy had seen the deregulation of the internal three Swedish insurance companies. According to the Riks­ Swedish banking and credit market in the middle of the bank's statistics, 93% of all currency movements in and out decade, and then, at the end of decade, the elimination of of Sweden during the critical period were carried out by this currency regulation. The deregulation of the currency left handful of institutions. Sweden wide open for runs, like the recent ones, on its One example shows how few control the Swedish econo­ krona. my . The 10 leading export companies have, in short positions The monetarist Social Democratic policy began as soon and cash liquidity, 200 billion krona, which is almost twice they were back in power in the fall of 1982. The first thing the Swedish currency reserves, or more than these companies they did was to install Dennis as head of the Riksbank. They export in real goods in one year. More than half of this 200 also made a flying start into the speculative transactional billion krona sum is in the hands of companies controlled by economy they had created during the 1980s, by devaluing the Wallenberg family, and more than half of all currency the krona 16% in October 1982. THe prime movers of that transactions in and out of Sweden are performed by the Wall­ policy were Prime Minister Olof Palme, Finance Minster enberg-related S-E Bank. K.O. Feldt, and Dennis. The run was supposedly triggered by the Finnish decision All three ofthese top Social Democrats have been impor­ to let its currency float by decoupling it from the European tant operators on the international scene. Palme's role is Currency Unit (ECU), which meant a de facto decision to known, but what is not known to the general public is that devalue the Finnish mark. Since Sweden and Finland have during his time in office, Feldt played an important role in similar industrial structures, everyone thought that Sweden carrying out the policy of the IMF as chairman of the Group would also have to decouple its currency from the ECU. of Ten. To carry out the IMF's policy toward our neigh­ Then, Riksbank head Dennis carried out his now world­ boring Baltic nations is a task which "conservative" Prime famous fight to save the Swedish krona, a fight which, if Minister Bildt has made his own. Dennis has been one of allowed to continue, will destroy what is left of Swedish the important officials at the regular monthly meetings of industry. Already, this depression has cost Sweden 200,000 the Bank for International Settlemehts, where heads of the industrial jobs out of 1 million, i.e., a 20% decrease. Swedish various European central banks decide their policy. During industry employed only 1 million out of a labor force of 4 the last year, Dennis has chaired these meetings. million, so even before the acute crisis, Sweden as an indus­ During the 1980s, Social Demdcratic Finance Minister trial nation was in deep trouble. Feldt became famous for introducing the "cheese slicer" Refusing all but monetarist "remedies," Dennis pushed principle, in cutting the budget every year throughout the the economy from the frying pan into the fire. He ended up decade. The idea was to cut a sman slice each time across increasing marginal interest rates, that is, the interest rate the the budget, to carry out a continuous austerity policy. The banks must pay on daily loans from the Riksbank, to 500%. only purpose of Feldt's Social Dembcratic policy then, like All this drove the ordinary interest rates above 20%, and with the "conservative" policy of today, is to satisfy the demands an inflation level of 2%, it resulted in a real interest rate of the "market" to cut consumption.

EIR October 16, 1992 Economics 7 Behind the assault on the lira, masonic maneuvers target Italy by Claudio Celani and Umberto Pascali

The storm that is buffeting Italy is without doubt the most ship is pinned down by the rigid austerity demands of the serious in the postwar period. The lira has fallen by 15% European Community presented as a sine qua non for re­ since it exited the European Exchange Rate Mechanism on entry into the European Monetary System, demands which Sept. 13, and its fall continues. The Bank of Italy, after coincide with those of the I$ternational Monetary Fund having spent half of its foreign reserves, has now given up (IMF). These demands amouqt to sending the groups that its defense completely. National statistics show a picture of currently run things in Italy to fide off into their last sunset, virtual bankruptcy. The debt exceeds the Gross Industrial and replacing them by people qIore compliant to the Anglo­ Product: 1,500 trillion liras; the public deficit is more than American designs. 10% of the Gross Industrial Product; unemployment is grow­ ing. This financial isiscr is due to more than a decade of Spawning revolt deregulation a la Margaret Thatcher, which brought about a The decision by the governmentof Prime Minister Giuli­ huge state indebtedness by selling state bonds at more than ano Amato to "find"93 trillion liras by cutting spending and 12% interest. increasing taxation has caused!a kind of revolution. Amato The crisis is accompanied by foreign destabilizing ma­ decreed the elimination of health insurance for most Italians neuvers, mostly from the City of London and Wall Street. (later slightly eased) and a freeze on wages and pensions, as The Wall Street investment bank Goldman Sachs, which well as several new tax increasc;s. The trade unions naturally financiallysupports both George Bush and Bill Clinton, pre­ declared war, calling for strik�s that were more than 90% dicted that the fall of the lira would not stop until it reached effective, set to culminate in at general strike on Oct. 13, a the rate of 1,000 liras to the German deutschemark. Before level of protest not seen for J:4e last 20 years. The unions the crisis, the exchange rate was at 740 liras to the mark, and are demanding that the government dump its free market now it is above 900. policies. They propose their own budget cuts, which will This is not the first time that this financial oracle has not hit social services. The biggest labor confederation, the poked its nose into an Italian crisis. Economic observers have CGIL, proposed to slam finan� capital with "extraordinary noted that the speculation against the lira started at the very financialmeasur es," such as a moratorium on the public debt, moment that Goldman Sachs announced the weakness of the in order to allow for an econ�mic recovery. In itself this Italian currency, which was then still part of the European would not solve much, and could make things worse, but in Monetary System. No sooner had Goldman Sachs made its the context of an industrial rec�nstruction plan, as proposed "prediction" than it announced it was establishing an "opera­ by Lyndon LaRouche, it is the ldnd of monetary reorganiza­ tional" presence in Italy by opening its first office in Milan. tion that helps free resources for investments. A contradiction? Perhaps the explanation is to be found in The newspaper of the Italiaq Liberal Party , L' Opinione­ the proposals of the senior adviser of Goldman Sachs for considered close to masonic Circles-recently ripped into Italy, Romano Prodi, who recently suggested that govern­ CGIL head Bruno Trentin for proposing that 20% of bank ment privatize the three main Italian public banks. Clearly deposits be frozen and turned ;into a long-term loan to the with the lira's rate against the mark at 1,000, holders of the state. L'Opinione compared Trentin's proposal to those of German currency gain quite an advantage over a rate of 740 Roberto Formigoni and Vittorio Sbardella, both leaders of liras to the mark ! the Catholic organization Communion and Liberation and From a political standpoint, it is clear that, in the context members of Parliament from the dominant Christian Democ­ of the Anglo-American "new world order," Italy makes the racy. The two proposed to consolidate the public debt by easiest target for attacking continental Europe and breaking converting public bonds from s ..ort-term to long-term. L' Op­ a Paris-Bonn-Rome alliance. Wall Street and the City of inione does not explain that th�se proposals are based on a London are counting on the fact that the present Italian leader- strong criticism of free market economics, usurious interest

8 Economics EIR October 16, 1992 rates, and finance capital, and that they are aimed at forcing resign in the 1960s after allegations of attempting a coup, a shifttoward investment in industrial growth. Segni is calling for an "institutional reform" that would sup­ These anti-free market ideas are gaining ground not only press political parties and replace them with lobbies. Despite in the unions but also inside the Christian Democracy and undeniable corruption and many ot�r faults, Italy's parties the Party of the Democratic Left, the main opposition party . sometimes do represent the thinkingiof their constituencies, It is exactly against this convergence on a potentially broad and the parliamentary system makeS it extremely tough to ruling coalition that the Anglo-Americans have deployed all pass the austerity regimes ordered qy the IMF. Segni, who their destabilizing capabilities. suddenly seems able to have at his !disposal huge financial The Anglo-Americans' strong suit is the North League, resources, is promoting his own mass rallies, and is receiving the separatist movement of Umberto Bossi and Gianfranco the support of the P-2-connected media. Miglio, which has announced a tax revolt, and the intention Similarly Claudio Martelli, the justice minister, until re­ to split the "rich" north from the "poor" south of Italy, ex­ cently was the loyal henchman of Socialist Party Secretary ploiting the opposition to austerity that is radicalizing Ital­ Bettino Craxi. But Craxi is out of favor with the Anglo­ ians. The ideology of the League's leadership is exemplified Americans, who "suddenly" discovered that he was corrupt. by Miglio's statement that "Hitler made mistakes of style." Martelli, after a U.S. visit in September, where he had long In the recent local elections in the city of Mantua, in Lombar­ talks with the FBI on the "anti-Mafiafigh t," became an anti­ dy , the League tripled its vote to 34%, and the Alpine corruption convert, calling for investigations into his erst­ League, led by Bossi's sister, gained another 7%. The city's while mentor. Martelli also distinguished himself in an un­ former leading party, the Christian Democrats, collapsed to precedented personal attack on magistrate Agostino Cordo­ 14%. va, and called for increased cooperation with the FBI to fight According to polls, if a national election were held now, the Mafia. the League would come in first in the north with 30% of the Not least among P-2's assets is to be counted the secretary votes. For the first time since the war, the government has of the small Republican Party, Giorgio La Malfa, a second­ postponed 42 other local elections until next year. A reaction generation agent of the British financial establishment. La by the Constitutional Affairs Committee of the Parliament Malfa has been calling for a super-government, to include forced the governmentto call elections for Dec. 13. the North League, in order to force tihrough austerity. Masonry also has its secret assets, mostly terrorism, di­ The return of P-2 rected at the movement against IMP austerity. At the end of Behind the North League are the masonic groups associ­ September during a demonstration df 150,000 in Rome, 500 ated with the Scottish Rite in the U.S. and England-in violent "autonomists" suddenly attacked the protest's lead­ particular the structure of the secretive Propaganda-2 Iodge. ers. The autonomists, notorious organizations that provoked The Venerable Master of P-2, Licio Gelli, who spent 10 armed clashes in the streets in the 1970s and '80s, had almost years in hiding or jailed and was "cleaned up" after Bush's disappeared. This time they were led by the well-known inauguration, openly supports the League and freely pontifi­ terrorist Franco Pifano, who had previously been arrested cates in any newspaper, calling for a coup d'etat. "We have while in possession of missiles. In the confrontation that long had the conditions for a coup d'etat," he told Europeo erupted with police, few noted that the officer leading the magazine on Sept. 18. "A coup d'etat that should eliminate police was P-2 member Elio Cioppt-the same person who the scum [the political parties] that are robbing us ....In had been involved in a mysterious sabotage of the 1978 effort reality do you know who represents the only hope for this to find and free kidnaped Christian Democratic party presi­ country adrift? Bossi. If Bossi really gets the tax revolt start­ dent Aldo Moro. Moro was then killed by the Red Brigades. ed, I will join him immediately." The anti-European strategic aim!of the masonic offensive According to recent investigations begun by a prosecutor, was made brutally clear by Prof. Aldo Alessandro Mola, Agostino Cordova, in Calabria, in the south, Gelli is in close director of the Center for the Study of the History of Masonry , touch with the very same bosses of organized crime in the to the magazine II Sabato of Sept. 26. "The conflictopened south whom the League officially targets as enemies. Gelli today is on whether to accept German hegemony or to return has been unable to explain recent transactions of hundreds of to containing this hegemony. Thus, we cannot renounce the billions of liras, which may have been used for destabilizing alliance with the U. S. , England, [and] France. For us Germa­ actions. ny is and remains the strategic danger." Mola explains: "ital­ Beyond Gelli, the whole masonic network is being acti­ ian masonry was reborn in 1945 thinks to Truman. Truman vated, eerily reminiscent of the post-Versailles period that intervened even to ask for the headkJ.uarters of the masonry , preceded Fascism in Italy. In addition to the League, Anglo­ Palazzo Giustiniani, to be given \lack. Masonry had lived American masonry has a candidate who is supposed to re­ abroad during Fascism thanks to t� money of Italo-Ameri­ place the whole unruly Christian Democratic leadership: Ma­ can masons like Arturo Di Pietro and Charles Poletti; then rio Segni. The son of a former President who was forced to we had Frank Gigliotti. What's sca.pdalous in that?"

EIR October 16, 1992 Economics 9 Asian development means the International MonetaryFund must go by Kathy Wo lfe

Japan and other Asian nations are planning up to $2.5 trillion People require infrastructure in long-term investment in basic economic infrastructure Amid this great debate across Asia and in New York and projects in Asia outside Japan by the year 2000, Shiro Yokoi London, about a third of the huge infrastructure projects cited of Japan's Long Term Credit Bank told the Sept. 24 Far East by Japan's Long Term Credit Bank (LTBC) have gotten Economic Review. "An industrial revolution has changed the under way. The pro-people lobby in Japan figures that people shape of East and Southeast Asian economies over the past are wealth, and that infrastructure must be built to realize two decades, but has also created a creaking public infrastruc­ that wealth. ture ," the magazine reports . "Needed projects range from "It's simple," one LTCB economist told EIR . "Divide the new roads and mass-transit, to power generation plants and $2.5 trillion up by size of popqlations: China has 1.1 billion telecommunications systems." people, so they will need a large percentage of infrastructure, Japan's Finance Ministry has announced an additional and so on. What we will build i$ the same everyWhere: roads, $2.6 trillion, 1O-year domestic infrastructure modernization railroads, airports, water systems, mass transit, power plants, plan for 1991-2000, the Long Term Credit Bank told EIR on electric utilities grids, telecommunications systems, sewage Oct. 5. To be built are new Bullet Train lines, nuclear power systems, waste disposal systems-the obvious." plants, and communications grids to create a "hydrogen Asian nations outside of Japan and China have already economy," based on electric- and hydrogen-powered vehi­ begun projects worth some $600 billion. Taiwan alone will cles, sources close to the Keidanren business group have told spend $300 billion on infrastructure under its six-yearplan EIR . for 1990-96. This includes new highways, mass transit sys­ None of this, however, will work if Asia's financialelite , tems, and a Japanese-style high-speed rail link between Tai­ especially in Tokyo, stays trapped in the InternationalMone­ pei and Kaohsiung. Also planned are upgrading of sewage, tary Fund (IMF), Versailles system of world monetary con­ pollution control, and other sys�ems. trol by London and New York. Reality is that London and In South Korea, a similar governmenttask force has pro­ New York plan to subject Japan and Asia to the same treat­ posed spending $50-100 billion on infrastructure in the next ment which Ibero-America received after the April 1982 five years, including construqting 12 new nuclear power Malvinas War, when the plug was pulled on Mexico and plants to more than double Korea's nuclear electricityoutput Brazil, precisely because they were high-growth, viable by the year 2000, a large new Bullet Train line, two new economies. airports , several new deep water shipping ports, and expand­ An economist at the Bank ofEngland 's Asia desk laughed ed water and sewerage facilities. at the report of $2.5 trillion in Asian development in an Hong Kong plans to build before 1997 a huge new airport Oct. 1 discussion with EIR . "The Bank for International and port complex, which, along with new highways, mass Settlements is on Japanese banks to cut back foreign lend­ transit, and telecommunicatioqs lines, will cost as much as ing," the source said. "Japanese banks are retrenching, and $22-25 billion. will have to continue a long process of cutback. I don't see Thailand has an $8 billion r�il expansion plan for the five any such infrastructure lending in Asia for fiveyears at least." years 1991-96. Malaysia has a $12 billion five-yearplan for Japanese Prime Minister Kiichi Miyazawa has also port and expressway expansioQ, and Indonesia has a similar bowed foolishly to demands from the IMF, Bank of England, five-yearplan . and U.S. Treasury to use his $87 billion government Japan's 1O-year plan includes building 40 nuclear power "growth" package, announced on Aug. 28, to bail out Japan's generation plants between 1991 and20 10, including plutonium speculative stock market. Japan's Ministry of Posts an­ fast breeder reactors, doubling the number of plants to 80, nounced on Sept. 21 the transfer of some $10 billion of and increasing to over 50% the.amount of Japan's electricity the Japanese people's savings into the Postal Life Insurance supplied by nuclear power. Of these, 12 plants are already Welfare Corp. , to buy stocks. under construction. The National Railway is constructing for

10 Economics EIR October 16, 1992 operation by the year 2000 a magnetic levitation train line for service from Tokyo to Osaka, and expanding Japan's Bullet TABLE 1 Train(Shinkansen) service to all comers of the country. Asia's financial powerhouse A new international airport hub is to be built on reclaimed (billions $) land in Ise Bay on the Pacific Ocean near Nagoya, and infra­ 1O-year cumulativ Current An � structure is to be builtthere for Japan's aerospace industry. trade surplus· foreign reserves Asia-wide deep waterport hub is to be builton WakasaBay on Country 1983·1 992 (est.) ; end September 1992 I the Japan Sea opposite Nagoya, and linked to Nagoya by new Japan $650 $ 70 Bullet Train express connections. Entirely new shipping tech­ nologies are being developed, including magnetohydrodynam­ Taiwan 112 86 ic ships propelled by magnets and electric fuel cells. Singapore 15 38

Hong Kong 25 30 Development or debt bailout? In the end, however, the issue is the control over the huge P.R.C. 10 50 financial surpluses of Japan and other Asian trade power­ South Korea 5 16 houses. Long Term Credit Bank chief economist Jiro Otsuka Total $81 7 $290 estimated recently that Japan, Taiwan, Singapore, and other

Asian nations have trade surpluses from 1981 to 1990 adding 'Current account surplus, which is the trade surplus plus the net short-term up to $565 billion. foreign earnings of the country's financial sector. All years actual except 1992 figures, which are estimated. EIR's update of these figures shows that during the 10 Sources: Long-Term Credit Bank of Japan, International Monetary Fund, years from 1983 to 1992, this cummulative Asian trade sur­ World Bank. plus has grown to $8 17 billion (see figure). Asian foreign exchange reserves have also boomed. these mammoth jobs," he said. As the IMF's 1992 Annual Report complains, however, "Japanese banks have begun to prune overseas branches therest of the planet now suffers a "global capital shortage," outside of Asia," the Review also reports, "and are also eager which is, in fact, due to the collapse of the banking systems to cut their exposure to European real estate and are equally of the United States and Europe and the IMP's destruction unenthusiastic about U.S. real estate. U.S. junk bonds have of the economies of Russia, Ibero-America, and Africa. turned sour for Japanese banks.... Thus , all roads point to The IMF crowd in London and New York want Asia's Asia." surplus to be used for refinancing existing bad Third World One LTCB economist even told EIR on Oct. 5 that the loans, Russian debt, and U.S. Treasury bonds. London Eurodollar market is a thing of the past, as it has Unless Japanese and Asian leaders break with the IMP's been for the last few years funded entirely by Japanese and system, and insist on large-scale Third World debt relief and German financial surpluses. Now thatGermany needs all its a reordering of world economic priorities, an independent cash for eastern Germany and eastern Europe, and Japan is "Asian Miracle" is impossible. shifting cash into Asia, the Eurodollar market, he says, is So far, Japan's Miyazawa government has played the being shut down. IMF game. Instead of sending billions to help starving Africa "Japanese banks have been reoycling Japan's entire sur­ or building Asian dams, Japan's huge Overseas Economic plus for 10 years via the Eurodollar market, by depositing it Cooperation Fund (OECF), which dispenses over $11 billion in Japanese and other banks in New York and London. That a yearin foreign aid, announced recently a drive to give loans is over now," he said. "The United States is still in very bad to U. S. companies such as General Electric, to appease the shape, Europe is not that attractive, whereas the Japanese Jap-bashers in Washington. economy is fundamentally sound: no budget deficit, no trade Japan's Export-Import Bank, which makes an additional deficit, high savings rates. So it is time for us to have a clear $10-15 billion annually in low-cost loans, gives 20-30% of vision about our role in developing Asia. these to U.S. companies. Another 20% of the Japanese Ex- "The yen should play a greater role in internationaldevel­ 1m's budget in recent years has gone to finance the IMF opment," the Japanese banker said. "When Paul Vo1cker "shock therapy" debt restructuring package known as the raised interest rates to 22% in 1980, it must be realized, this Brady Plan for Mexico and Brazil. alone caused the Latin American debt to expand by $400 Many in Japan want to change priorities. Now that billion. This was a terrible result of his policy. If there had Asia is a new world financial power, Asian banks should been an alternative currencyto the dollarfor trade, this need fund the Asian infrastructure boom, LTCB 's Jiro Otsuka not have happened." told the Sept. 24 Far East Economic Review. Japanese While the yen could bevery useful as a development weap­ banks are "busy now brushing up their project-financing on, however, the real problem then was that no one in Tokyo techniques in readiness to meet the challenge of financing offered lbero-America credit, to es¢ape theIMF's blackm ail.

EIR October 16, 1992 Economics 11 arriving every month. The drought has caused eVen greater dislocation. Zim­ Zimbabwe trapped in babwe is traditionally a foocJr.exporting country, but this year's maize crop is down to 3$% of its normal levels. Other satanistecon omics crops are down by levels of 50 to 75%. Not only does Zim­ babwe lose foreign exchange �ith the drought, but drought relief to stave off mass starv�ion requires that Zimbabwe by Linda de Hoyos import 2 million tons of fo04 this year, of which only 1 million has been procured so far. In the last six months, Zimbabwe, a nation of 10.8 million In addition, the drought ha$ destroyed the country's ma­ people, has been afflicted with the "worst drought of the jor energy supplier: hydropoWer. On Sept. 21, the state­ century" to hit Africa, which has wreaked havoc on the coun­ run electricity authority told all companies to slash power try and placed nearly half the population in danger of starva­ consumption by up to 30% and unilaterally cut household tion. But under the leadership of Finance Minister Bernard use by 75%. Many companies Were already operating at only Chidzero, the government of Zimbabwe has been forging 70% capacity because of the energy shortage. The power full-speed ahead with a "structural adjustment program" dic­ cuts areexpected to have affecled 65,000jobs . tated by the International MonetaryFund (IMF)-no matter The combined effect of tile drought and the structural what the cost to human life. adjustment program is expecteii to shrink Zimbabwe's total Chidzero's dedication to the propositionthat usury comes Gross Domestic Product by 9-12% for 1992, with fears the firsthas even earnedhim accolades from the Britain, Zimbab­ collapse could be as great as 20% . we's former colonial master when it was called Rhodesia. On Sept. 17 British Minister for Overseas Development Lynda Enter the devil Chalker praised Zimbabwe for its grim determination to pro­ But mercy for the hungry 1 is not the order of the day. ceed with austerity reforms. Chalker told the press she was Instead, the British banks and lIMF have used Zimbabwe's "amazed the reforms were on course despite the critical situ­ increased food dependency to press even harder for their ation." demands to crash what's left of the Zimbabwe economy. In In January 1991, Zimbabwe agreed to carry out the IMF­ mid-July, as the Zimbabwe population was reeling under the dictated structural adjustment program, despite the fact that effects of the drought, with only one-third of the afflicted Zimbabwe has paid a higher proportion of its debt than any population receiving food relief, the British bank Standard other African country. By 1990, Zimbabwe's cumulative Chartered issued a scathing a�ck on the government for interest payments alone for the decade of the 1980s was failure to "hop to" with the IMI!Iprogram . double the entire debt principal of 1980! Intoned Standard Charteredl, Britain's largest bank in Af­ Chidzero, who is known to have close ties to Tiny Row­ rica, "Since Zimbabwe, in its present dire straits, has no land's Lonrho corporation, Zimbabwe's largest employer, viable alternative to an IMF package, the government will enforced the IMF program, beginning with a 41 % devalua­ have to grit its teeth and agree to politically unpopular poli­ tion of the Zimbabwe dollar. The IMF also demanded free cies. The difficultpart will be implementing those policies, trade liberalization which forced imports to rise steeply, and given the slippage in implementing ESAP [Enhanced Struc­ cut into Zimbabwe's industry. Exports were also boosted. tural Adjustment Program] ..1 • and securing the political Under the IMF conditionality requiring that the Grain Mar­ consensus necessary if the program is to proceed." keting Board, which handles grain transactions, balance its On July 30, Finance Minister Chidzero dutifully in­ books, Zimbabwe was still shipping out food as late as Febru­ formed Parliament that Zimbabwe would proceed with the ary 1992, when the extent of the impending crop failure was reforms "as the only way forward even in these difficult already known. times." Chidzero announced th�t the governmentwould: When the drought hit, Zimbabwe's economy was already • impose a 5% drought taxi surcharge on individuals and feeling the effects of the IMFpro gram, as inflationbegan to soar companies to pay for the effects of the drought; and unemployment roseto levels of 20% . Afterthe government • cut subsidies to state sector industries, and move to hiked interest rates in July, as per IMF instructions, interest sell them off to private ownerS;l rates rose to 42% ! The hike in interest rates, some Zimbabwe • cut government spending by 20% despite the 40% in­ industrialists believe, was designed to force firms to go to for­ flationrate and $200 million projected spending for drought eign creditors, bringing in more foreign exchange. relief; cuts will include chopping the civil service by 10,000 Late in 1991, Zimbabwe was downgraded from a "mid­ jobs with plans for cutting another 10,000 in 1993; dle-income country" to a "low-income country." Zimbabwe • impose a further currency devaluation , this time for is also host to some 125 ,000 famished refugees from the war 15%, scheduled for later in 199[2; in neighboring Mozambique, with some 5,000 new refugees • cut food subsidies.

12 Economics EIR October 16, 1992 i Currency Rate�

The dollar in deutschemark$ New York late afternoonfixing

1.60

1.50 IV -- This British "Dope, 1.40 1"- Inc." bank ordered � -t.- � Zimbabwe to kill its own people . 1.30 ; 1.20 8/19 8/26 9/2 9/9 9/1 (j 9/23 9/30 10/07 Let them eat debt In the last category, on Aug. 4, the government raised The dollar in yen the price of maize meal, the major staple, by 50%, and the New York late afternoonfixing price of bread by 67%. The price hike, the governmentsaid , was necessary to offsetthe cost of importing food relief. 140 Then, on Sept. 2, drought victims were told that would 130 have to live on 5 kilograms (11 pounds) of maize a month­ , a quarter of what they need to survive. The government, as � ,.... 120 reported by Reuters, said it was slashing food relief by two­ " thirds from 15 kilograms to 5, because of difficulties im­ 110 porting food. Aid workers say that a person needs 20 kilo­ grams a month of maize meal to survive. 100 Striking the understated tone of a British aristocrat, Dep­ 8119 8/26 9/2 9/9 9/16 9/23 9/30 10/07 uty Social Affairs Minister Florence Chitauro told a news conference, "We are dealing with a crisis situation which The British pound in dollars New York late afternoonfixing calls for some modification in our eating habits. People are being urged to prepare just enough food for their immediate 2.00 consumption and not to throw away leftovers"! ..... Such admonitions tend to ignore the reality that the food 1.90 V � consumption has already fallen to starvation levels. Ac­ cording to an Oct. 1 Reuters wire, people are now dying of 1.80 .� hunger in northernZimbabw e. Although the governmenthas 1.70 � not admitted any deaths by starvation, Chief Sansali of the �V J Binga district told Reuters: "I told my people to fend for 1.60 themselves while we wait for nature to take its course. It 8/19 8/26 9/2 9/9 9/!16 9/23 9/30 10/07 already has anyway, because my people are dying of hunger every day." The dollar in Swiss francs : There are some recompenses, however. On Sept. 14, the New York late afternoonfixing IMF announced approval of a $459 million loan for Zimbab­ we, which of course is dependent upon strict adherence to 1.40 I the structural adjustment program. 1.30 .,- And, in an action that will be a relief for animal lovers, ,Y 1"- V the U.S. Fish and Wildlife Service declared that it would 1.20 � � ... give Zimbabwe $200,000 in emergency aid to help relocate about 400 elephants parched by the drought. "In addition to 1.10 , saving these animals from almost certain death, the reloca­ I , tion expands the African elephant's range outside the park 1.00 into areas where they have been absent for years," FWS 8119 8/26 9/2 9/9 9f1 6 9/23 9/30 10/07 director John Turnerhappily noted.

EIR October 16, 1992 Economics 13 u.s. Unemployment Coverup

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12.5% 14�o-r���------�-I�------��------�----��------���--��--� 12.4%

1 2�o -r------��------��----"�------� 12.3% Jul Aug Sep 1 0%��----��------���------��-=__ �-- -: ' 7'7% L' 7.6"10 8% -r------.���------_.�----��------�.'" 7.5% ,

6�o ����------�------�__ nf�------��------_.� --_; 7A% Julb Aug Sep Data used for unpublished unemployment rates Explanatory Note ' (thousands) 6.1 6.3 CIvilian Part-time, Unpub- Unpub- In September, over i million jobless and million more labor Official Want a economic Oniclal liehecl I'-hed semi-employed people were ignored by the U.S. governmenfs forCII unemployed job now rueon. U-5b rale Rate 1 Rale 2 Bureau of labor Statistics in its calculation of the official (U-Sb) Vear (a) (b) (e) (d) bla (b+c)la (b+C+cI)la unemployment rate. To ,bring out the truth, EIR is publishing 4,093 3,881 2,198 4.9% 9.6% 12.3% 1970 82,771 the rates you would seelif the government didn't cover up. 1971 84,382 5,016 4,423 2,452 5.9% 11.2% 14.1% 1972 87,034 4,882 4,493 2,430 5.6% 10.8% 13.6% The widely publicized oliicial unemployment rate is based on 1973 89,429 4,385 4,510 2,343 4.9% 9.9% 12.5% a monthly statistical sanjpling of approximately 57,000 house­ 1974 91,949 5, 156 4,514 2,751 5.6% 10.5% 13.5% 1975 93,775 7,929 5,271 3,541 8.5% 14.1% 17.9% holds. But in order for someone to be counted as unemployed, 1976 96, 158 7,406 5,233 3,334 7.7% 13.1% 16.6% the respondent member of the household (often not the per­ 1977 99,009 6,991 5,775 3,368 7.1% 12.90/. 16.3% son who is out of work) linust be able to state what specific ef­ 1978 102,251 6,202 5,446 3,298 6.1% 11.4% 14.6% 1979 104,962 6, 137 5,427 3,372 5.9% 11.0% 14.2% fort that person made injthe last four weeks to find a job. If no 1980 106,940 7,637 5,675 4,064 7.1% 12.4% 16.2% specific effort can be cit�, the jobless person is classified as 1981 108,670 8,273 5,835 4,499 7.6% 13.0% 17.1% "not in the labor force" andignored in the officialunemployment 1982 110,204 10,678 6,559 5,852 9.7% 15.6% 21 .0% count. 1963 111,550 10,71 7 6,503 5,997 9.6% 15.4% 20.8% 1984 113,544 8,539 6,070 5,512 7.5% 12.90/. 17.7% But nearly 6 million of thlllSediscarded people are also reported 1985 115,461 8,31 2 5,933 5,334 7.2% 12.3% 17.0% on the monthly survey indicating that they "want a regular job 1988 117,634 8,237 5,825 5,345 7.0% 11.9% 16.5% now." EIR's Unpublish Rate 1 is calculated by adding these 1987 119,865 7,425 5,714 5,122 6.2% 11.0% 15.2% � 1988 121,869 6,701 5,373 4,965 5.5% 9.9% 14.0% discarded jobless to th� officially "unemployed." The Unpul> 1989 123,869 6,528 5,395 4,656 5.3% 9.6% 13.4% lis hed Rate 2 includes, iii! addition, over 6 million more people 1990 124,787 6,874 5,473 4,860 5.5% 9.9% 13.8% forced into part-timework for economic reasons such as slack 1991 125,303 8,426 5,736 6,046 6.7% 11.3% 16.1% work or inability to find E\ full-time job. These people show up data Monthly (seasona/ly acfusted) as employed in the official statistics even if they worked only 1991: one hour during the sUl'VIeyweek. September 125,607 8,442 5,846' 6,374 6.7% 11.4% 16.4% October 125,549 8,582 5,932' 6,328 6.8% 11.6% 16.6% For comparability with t�e official rate, the EIR rates are cal­ November 125,374 8,602 5,932' 6,408 6.9% 11.6% 16.7% culated on the same bas. figure, the BlS defined civilian labor December 125,619 8,891 5,932' 6,321 7.1% 11.8% 16.8% 1992: force. This figure compriees all civilians classifiedas either em­ January 126,046 8,929 6, 118' 6,719 7.1% 11.9% 17.3% ployed or unemployed. for a number of reasons the civilian February 126,287 9,244 6,118' 6,509 7.3% 12.2% 17.3% labor force can be considered as a bloated figure. Its use as . March 126,590 9,242 6, 118' 6,499 7.3% 12.1% 17.3% April 126,830 9, 155 6,310' 6,272 7.2% 12.2% 17.1% the divisor in unemployment rate calculations thus further May 127, 160 9,504 6,310' 6,524 7.5% 12.4% 17.6% masks the depth of the �nemployment problem. large seg­ 127,549 9,975 6,310' 6,040 7.8% 12.8% 17.5% June ments of the population, l\Ihomight not under healthy economic July 127,532 9,760 6,178' 6,324 7.7% 12.5% 17.5% August 127,437 9,700 6, 178' 6,326 7.6% 12.5% 17.4% conditions beforced to S!Bekwork, have become a part of the September 127,273 9,572 6,178' 6,304 7.5% 12.4% 17.3% civUian labor forceover ttlepast 25 years of "post-industrial so­

' The wanta jobnow figure is compiled quarteriy. The figure usedlor monthly calculation 01 the Unpublished ciety"economy. This includes young mothers, the elderly, and Rata 1 is that Irom the most recent available quartsr. many collegestudents.

14 Economics "ErR Oct6be� 16, 1992 Agriculture by Sue Atkinson

Low farm income is good? Reserve study makes clear that the in­ come would gQ to the value-added Yes, ifyou believe the Dallas Federal Reserve study of the ' processors, not the producers of the impact of free trade on fo od and fa rming . raw materials. This explains what the USDA means when it sends out press releases that free trade will result in increased farm income. They fail to disclose that T he Dallas Federal Reserve Bank, and other cavils. She had a point. the projected increased income would in its journal Economic Review (Sec­ However, there is a deeper level only amount to !lipartial recovery of the ond Quarter, 1992), carries an 11- to the Dallas study, besides its incom­ income lost due �o the drop in producer page article on the "Regional Effects petent methodology and dramatic prices during the "adjustment" period. of Liberalized Agricultural Trade," figures. The report's author, Fiona D. In fact, the study goes on to say which purports to show how free trade Sigalla, associate economist of the that while gross �ncome would decline will result in lower prices to many Federal Reserve Bank of Dallas, is for many producers , farm policy liber­ farmers, but it will be all to the good. recommending free trade for some alization would also lower some types Written in a sort of "bankspeak," very specific reasons, with deadly im­ of production costs, thereby slightly theFederal Reserve states that "free plications. offsetting the lost income. "Profitable trade would have little or no effect on She argues that lower producer businesses may experience a reduc­ income in six states and that gross ag­ prices are mostly "positive," once we tion in income but would remain in ricultural income would rise in six get beyond the "temporary" negatives operation. Marginally profitable other states. Agriculture income of the adjustment period. Positive for farms may choose not to remain in would decline by 7% or more in 14 whom? "One of the benefits of freer operation. " This is saying that there is states, and by at least 2% in the re­ trade-be it in agriculture, manufac­ going to be another round of mass maining 24 states." A map, with all turing, or services-is . . . resources farm foreclosures, and bankrupting of 50 states shaded in four tones from are reallocated to the most productive any independentfeedlots , processors, "little" to "great" effect, positive or firms." This is a veiled reference to the and others still left. negative, shows the results of free select few cartel trading companies, The assertion of the study is that trade. such as Cargill Inc. those producers who have sufficiently Recently, some of the specific This is a neo-colonial looting poli­ large livestock operations (a value­ conclusions of the so-called study cy of demanding raw materials at the added business) should survive, but have been quoted a great deal in con­ cheapest price in order for the select on a slimmer profitmar gin. The report gressional hearings and in other de­ processors to make more of a profit. goes into great detail as to which states bates on free trade, by those ques­ The Dallas Federal Reserve study is would benefit byfree trade and which tioning the desirability of the North written from this point of view. ones would losq. The results are prem­ American Free Trade Agreement The study states that consumers ised, of course, on how dependent the (NAFTA). For example, the piece will pay more for food. "Reducing or various state agricultural economies projects dramatic drops in producer removing a subsidy [or a tariff or quo­ are on the production of the to-be­ prices, including 80% for sugar, 43% ta] , would reduce the price producers cheapened raw materials and their for cotton, 63% for rice, and 34% for receive . . . [while] the price consum­ suppliers, and to what extent the econ­ com, with resultingdevastation to the ers pay would increase, and the quan­ omies are dependent on value-added various state economies affected. tity demanded would fall." It cites products whicp will be using the These dramatic income losses even the USDA as having determined cheap raw materials. were cited during the Sept. 30 Senate that "worldwide elimination of . . . The real p¥fPOse of a free trade Finance Committee hearings, by sen­ subsidies and barriers would increase agreement is to pay debt service. The ators from the relevant states. Their consumer prices for most agricultural Dallas Federal Reserve report ad­ queries gave witness Ann Veneman, products . " dresses this, but downplays it: "World deputy secretary of agriculture, an op­ If these higher consumer prices re­ farm trade liberalization would im­ portunity to ridicule the study, saying sult in increased income for the ag­ prove the U . S. lagricultural balance of that it was based on 1986-87 figures ricultural sector, the Dallas Federal trade by $3 bill�on, or nearly 25%."

EIR October 16, 1992 Economics 15 Report from Bonn by Rainer Apel

An anniversary tasting quite bitter tools, 27% for wood-processing ma­ Kohl's 10th year in offi ce is overshadowed by depression news, chines-and an accelerating drop in government has nothing but the old, fa iled recipes. domestic oq:lers . The data are sure to and his translate into reduced production and more layoffs . The bad statistics from east Germany may soon be the pattern also for the western parts. A March 1992 report of the VDMA and theBDI , the Federal Association of On Oct. 1, 1982, the Christian German regime pass away that easily. German Indbstry, on the trajectory of Democrat Helmut Kohl replaced the Kohl won the early elections of De­ key industries in theGerman East from Social Democrat Helmut Schmidt as cember 199O--mostly with the sup­ November 1990 to November 1991, German chancellor. The transition had port of the new voters in Germany's gave the following gloomy picture of been prepared by a good deal of con­ East. The clever packaging of Kohl's production output: electronics: spiracy and a no-confidencevote in the policy hid only for a short time that -54.7%; machine-building: -37.9%; parliament. The more conservative the contents hadn't changed. -32.8%; cars and trucks: -22.3%; voters welcomed the changing of the In early 1991, Chancellor Kohl chemical pr

16 Economics EIR October 16, 1992 Dateline Mexico by Cruz del Cannen Moreno Soto

Denying the crisis makes it worse jous told the newspaper Excelsior, Finance Minister Aspe is blaming the rest of the worldfor "than elimination of incompetents. President Carlos Salinas de Gortari's economicfa ilures. There is a humanlcost in terms of dis­ placed workers and businessmen who don't survive," b�t this is necessary. However, CBESP assistant direc­ tor Raymundo Winekler warned that "the state cannot withdraw assistance to industry and tell the inefficientones Finance Minister Pedro Aspe what the whole world already knows: to die, nor can it declare that 'it is dumped a bucket of cold water on his that the ceremonial signing of NAF­ unimportant if 30% or 40% of the in­ audience at the Second Mexico Youth T A on Oct. 7 was a celebration over a dustrial plant disappears.' " He as­ Forum, organized by Mexico's pri­ cadaver. In the same way, the Europe­ serted that "the extreme of the abso­ vate universities, when he declared an Maastricht Treaty is already dead, lute free market �s dangerous." This that "the government is not responsi­ despite France's shaky "yes" vote, as clear warning was in response to an­ ble for the economic deceleration of the result of England's withdrawal other of Aspe' s lunacies at the youth the country," and that Mexico is mere­ from the exchange rate agreements, forum, where he: stated that the gov­ ly suffering the consequences of the heralding the officialstart of the Great ernment was not planning to resume economic crises of the industrialized Depression of the 199Os. its role of credit issuance and increas­ nations. Just as with L6pez Portillo in ing its indebtedness with the central This impotent statement brought 1982, Aspe's comments aggravated bank, since this is prohibited by the to mind the events of May 1982, when already existing panic, rather than new bank reprivatization laws. President Jose L6pez Portillo publicly calming it. On the day of his speech, The effects of this "solid" and acknowledged that he was unable to the Mexican press published a study "firm"government policy aredevasta­ control capital flight. However, Aspe by Canacintra, the association of ting. New data recently published in went further, blaming Mexico's busi­ Mexico's manufacturers, which re­ the Mexican press reveal that the so­ ness sector for the growth of the cur­ vealed that 8 out of every 10 Mexican called "deceleration" has endangered rent account deficit, which this year is industries suffered from "decelera­ 850,000 industrial jobs alone. Pro­ near $20 billion, supposedly because tion" (official statistics show that GNP ductivity of the -clothing, footwear, businessmen and industrialists are go­ in the second half of 1992 grew less and electronic appliance industries ing into debt to modernizetheir plant than 1.5%, well under the 5.2% of has fallen by 80%. According to a and equipment "in amounts greater the same period in 1991), and that the World Bank report, Mexico's GNP than their savings capacity. " remaining 20% were also experienc­ per capita is $2,490 a year, one-third With the characteristic insanity of ing the effects of economic con­ that of Barbados flIld slightly less than the current Mexican government, traction. Brazil's. Aspe insisted that the monetary, fis­ Julio A. Millan, president of Con­ Mexico needs $40 billion over the cal, and financialmeasures of the Sali­ sultores Internacionales, issued a call next two years inlforeign reserves, but nas administration remain "solid" and to the private sector "not to panic" for projections in the growth of the cur­ "firm," and that it is only a matter for lack of operating capital. He said that rent account defiqitshow $24.6 billion the country's industrialists and farm­ deceleration is causing obvious "con­ in 1993, and another $28.8 billion the ers to put up with credit shortages, cern and anxiety," but he advised year after. Thus Salomon Brothers in­ high interest rates, new taxes, dramat­ against "dramatics or alarmism." vestment bankens say that "Mexico ic fall in sales, and the expiration of Such spokesmen for government has very probal)ly already begun to their loan deadlines until the second economic policy as Adrian Lajous and use up its interpational reserves to half of 1993, by which time, Aspe Carlos Eduardo Represas, president cover the deficit. " Only a $700 million swore, there would be a reactivation of the Center for Private Sector Eco­ reduction in the Icountry's $18.9 bil­ from foreign "investment" as a result nomic Studies (CEESP), have told the lion reserves is being admitted to thus of the North American Free Trade media that it is "healthy" for ineffi­ far, but the pani¢ is growing with ru­ Agreement (NAFTA). cient companies to shut down. "There mors that Salina� will have to devalue What Aspe did not want to admit is is no better cure for inefficiency," La- the peso.

EIR October 16, 1992 Economics 17 BusinessBrief s

Health Care of multi-system locomotives to make cross­ Total , the oil company which just recently pri­ borderrail transportindependent from thedif­ vatized a part of its capital , have decreased Poland imposes fe ring electrical currents in Germany, Den­ 30%. Other large companies like Club Medit­ mark, and Sweden was endorsed at the harsh budget cuts erranee and Carrefour are also drastically re­ meeting. ducing profitestimat es. The directors called on their governments The worst resultsfor mid-year, however, Polish Prime Minister Hanna Suchocka has to accelerate construction of tunnels and are those of Credit Lyonnais. Profits for the signed a bill cutting the public health sector bridges across the three Baltic straits of the first half ofthe year are down 93% from those budget, which will increase the cost of basic Fehmarn Belt, Fehmarn Sound, and the Ore­ of the slllIf period in 1991. medicines and hospital care . Poles will have sund to make the uninterrupted passage of The foreign trade deficit for August is 3 to partially cover the costs of a bed and food trains betweenSweden and continental Europe billion fraqcs. What is unusual about the deficit during hospital stays, and share the costs of possibleby early next century. is that for the third month in a row, industrial special health tests and dental care. It is expected thatthe volume of commodi­ exports to Germany have considerably de­ The cuts will further worsen the situation ty transport of goods between the European creased, indicating that there is a crisis on the in the health care system, which has been suf­ mainland and Sweden, which reached a vol­ other side bf the border as well. fering from a constant undersupply of medi­ ume of8 million tons annually in 1990 already , cines and erosion of care in the past years. will double by the year 2000 and triple by Theoretically, health care is still free for 2010. all insured people in Poland, which is a large In reviewingplans for new high-speedrail Energy : majority of the population. In practice, howev­ transit routes across the continent and to Tur­ I er, most clinics and hospitals ask for voluntary Frank­ key by the year 20 15, the German daily Declassification to aid donations before they admit someone for treat­ furter AllgemeineZeit ung on Sept. 29 reported ment, and some more expensive treatments that 3 million jobs will be created and secured fusion I power development have an "official"price list. by such projects. The report mentions plans, , Most patients do pay-sometimes be­ though not concretizedyet, in easternEurope­ The "Unit¢d States is startingto declassify H­ cause they want to help out, sometimes be­ an countries for links to the predominantly bomb fusion technology," in order to permit cause they fe el embarrassed or even hope for western high-speedpro jects, through Hunga­ the more �pid development of laser pelletfu­ better than ordinary treatment. Often, hospi­ ry, Czechoslovakia, the Balkans, as well as sion energy systems, WilliamJ. Broad report­ tals also rent their premises to bookstores, through Warsaw into the Community of Inde­ ed in the Sept. 28 New York Times. The same newsstands, and even hairdressers in order to pendent States, including a high-speed rail scientificph nciples are used in igniting nuclear make extramoney to cover maintenance costs. route from St. Petersburgto Moscow. fusion in tiny pellets with lasers as those uti­ lized to ignite large-scale H-bombs with atom bombs . � move toward declassificationwas first reported in the July issue of thenewsletter Infrastructure France of Fusion Power Associates, edited by Dr. Ste­ phen O. Dean. North-South high-speed Economy suffering effects All of the essential concepts in H-bomb fu sion have been published by Japanese, rail axis said critical of worldwide depression French, and Spanish scientists over the past decade. The continued secrecy has prevented The creation of a North-South axis for high­ According to two recent polls of the National U . S. scietitists from participating in interna­ speed rail transportin Europeis vital, declared Institute of Statistics (INSEE), based on ques­ tional science conferences wherethese "top se­ Heinz Duerr, the head of the two German state tioning 3 ,300 heads of companies, the eco­ cret" questions were openly discussed. The railway companies, after a meeting of several nomic situation in France looks extremely Times noted that in 1979, the U.S. government North Europeanrailway directors inCopenha­ grim. If some were still hoping for an upswing attempted to prevent The Progressive maga­ gen, Denmark on Sept. 29. during the first quarter this year, nobody ex­ zine frompublishing an article on the H-bomb. The meeting, which was also attended by pects one now . All those questioned indicate The Fusion Energy Foundation introducedan Peter Langager of the Danish State Railways that they will be decreasinginvestment consid­ amicus curiae brief in the case-which the (DSB) and Stig Larsson of the Swedish State erably and reducing jobs. government subsequently lost-pointing out Railways (SJ), resolved on a policy for more The majority of companies are revising that the inf9rmation the governmentwanted to joint investments in the development of com­ downward their expectations for the year. suppress had already beenpublished and circu­ bined rail-truck transportation in high-speed Rhone Poulenc has announced reduced profits lated in both theNew Solidaritynewspaper and transitat speedsof200 kilometers perhour and from an estimated 20% in the beginning of the Fusion magazine. more. Also, the development and production year, to 10-15% now. The quarterly profits of The m�)Ve toward declassification is wel-

18 Economics EIR October 16, 1992 Btifdly

• USE OF IlEROIN is on the rise in the United States, as the drug is entering the country in greater amounts, at lower prices, and ever more lethal levels of purity than be­ fore , the Chil1L1 Daily reported Sept. come, if it actually happens. It brings to the According to Watkins, "over the past 10 23. One U . S. (J)fficialis quoted saying fore other questions, such as whether the gov­ years, sub-Saharan Africa's debt has tripled that heroin users will outnumber co­ ernment will admit the key role of Bernhard to $180 billion, and the annual cost of servic­ caine users by the year 2000. Riemann's 1856 paperon shock waves in the ing it is $10 billion-draining the region's development of inertial confinementfusion. limited capital resources. Moreover, despite • JAPAN and the United States allocating almost a third of their foreign ex­ will jointly develop over five years a change eamings to debt repayment, most new solid-fuel rocket engine to im­ countries are building up arrearsat a frighten­ prove the range and speed of surface­ ing rate . Collectively, these amount to almost Africa to-air and air-to-air missiles, Japan $1 1 billion, compared with $220 million in announced Sept. 29. responsible for 1980 .... IMF "The human costs of Africa's debt crisis • IRAQI health officials say that have been immense, with governments infrastructure collapse the U.N. sanctions and the destruc­ squeezing public sector wages and health and tion of syringe plants by the bombing education budgets to meet their financialobli­ 'The increasingly parasiticrole of the Interna­ are forcing tbem to re-use syringes gations. Debt repayments are also undermin­ tional Monetary Fund" (IMF) is to blame and steel needles. This will "lead to ing efforts to introduce successful market re­ for the collapse of Africa's infrastructure and very, very serious health problems, forms, including many advocated by the economy, Kevin Watkins, a policy adviser to carrying dangerous diseases and mi­ World Bank and IMF .... Britain's Oxfam relief agency, wrote in a crobes, like AIDS, from one person "Thereis little point in the IMF Managing commentary in the Sept. 28 London to another," Health Ministry Under­ Director Michel Camdessus issuing . . . dec­ Guardian . secretary Dr. Shawqi Murqus told larationson poverty alleviation, when his in­ Watkins charged that the growing eco­ Reuters on Oct. I. stitution is part of the problem." nomic-currency crisis in Europe has "blown Africa off the agenda" at this year's IMF­ • AIDS AND TUBERCULOSIS World Bank meetings in Washington. This is are rampant among Florida migrant only "the latest in a decade of policy failures farm workers, the Centers for Dis­ and financialmismanagement orchestratedby Trade ease Control in Atlanta, Georgia re­ the two institutions. Since the debt crisis ported Oct. 1. Tests of 310 migrant struck in the early 1980s, the IMFand World Europe must stand up on workers in Immokalee, Florida dur­ Bank have dominated economic policymak­ ing February and March showed a 5% ing in Africa. As one country after another air war, says Attali rate of AIDS infection-ten times succumbed to the lethal combination of rising higher than the national average- interest rates and falling commodity prices, European airlines must stand up against the 44% tested positive for TB, and 8% the IMF stepped in with short-term loans to "aerial version of the Pax Americana," de­ for syphilis. burgeoning trade and budget deficits. Along manded Bernard Attali, chairman of Air with the loans came conditions governing France, in the French Sunday newspaperLe • CITIBANK engineered the stock money supply targets, interest rate levels, and Journal de Dimanche on Sept. 27. BernardAt­ market scam which crashed the Bom­ public spending, which transferred budget tali is the brother of Jacques Attali,the present bay stock market this spring, Hars­ management to Washington." French chairmanof theLondon-based Europe­ had Mehta, .the broker accused of Watkins complained that the "free market an Bank for Reconstructionand Development. wrongdoing In the case, has charged writ" of the so-called IMF "Structural Adjust­ Attali said that Europeis confronted with in an exclusive interview with News­ ment Programs" (SAPs) now "reigns supreme a fierce tradewar launched against transatlan­ track magazine. across Africa, but recovery is nowhere in tic air traffic, withU.S. airlines, which should sight. Living standards, which fell by a third not becapable ofrunning this ruinouscompeti­ • CHINA AND RUSSIA plan to in the 1980s, continued to slide ....Invest­ tion because theyare all bankrupt, setting pric­ build a bridge across the Heilong­ ment is hovering around mid- 1970s levels, es belowcost . They seem to have strongpoliti­ jiang (Amur) River at the city of infrastructure is collapsing, inflation is ram­ cal backing from the top of the U.S. Heihe, linkirig the Chinese industrial pant, and hunger is a spreading threat." administration, he said. center Harbin with Blagoveshchensk The blame for these developments, he Attali chargedthat the aim of the U.S. air­ in Russia, the Chinese news agency wrote, rests with the IMF's total backing for lines' strategy is to conquer thetransatlantic air Xinhua reported Oct. I. "Transport "creditor claims that sub-Saharan Africa's passenger market by "killing" the other com­ industries . .: . are unable to meet the crippling external debt could-and should­ petitors, to impose an"aerial version of the Pax demand cau$ed by sudden develop­ be honored, consigning the region to repay­ Americana" along with the Bush administra­ ment of bordertrade ," it said. ment levels bound to stifle growth." tion's new world order project.

EIR October 16, 1992 Economics 19 �ITillStrategicStudies •

Dead end fo r Banglap.esh's donor-dependent ecc>nomy

by Ramtanu Maitra

Political agitations which paralyzed the Bangladesh capital Meanwhile, the depleted infralitructure of the country, the of Dhaka this September should not be dismissed as yet continuing infancy of its indusbial sector, and the growing another expression of irrational rage by students trying to signs of a stagnating agricult4re have pushed the poor to steal the political limelight. Behind these more frequent out­ despair and millions are tryin� to flee the country as their bursts of discontent is the people's disenchantment with the only hope of survival. I ever-weakening economy and a resulting deep sense of hope­ Bangladesh has thus becom� a crisis for the entire region, lessness. Unless real efforts are made to formulate and imple­ and it is only in the regional cOJiltext that Bangladesh's prob­ ment long-term programs, bucking the might of the donor lems can begin to be solved. Even before any regional oppor­ countries and agencies-whose aid includes grants and cred­ tunities can be realized, howev¢r, the policies of the Interna­ its-Bangladesh could plunge into total chaos. Dhaka must tional Monetary Fund (IMF),i the World Bank, and like recognize now that the policies laid down by the donor agen­ i cies and international financial institutions are heading the country to a new form of slavery . After changing a military ruler, Gen. H.M. Ershad, and giving public exposure to allegations of his corrupt practices, the nation went to the polls last year and elected a democratic government under the leadership of Begum Khaleda Zia, wife of a former President who came to power through a military coup. But the change in power has not changed Bangladesh's prospects. Over the years , various governments have focused on only one task: feeding the population. Bangladesh leaders, not unlike the leaders of neighboring China, came to the conclusion that the way to stay in power is to keep the "iron rice bowl" intact. As a result, foreign aid and grants were used to import food . This dependency has in tum seriously eroded Bangla­ desh's independent policymaking and the credibility of its political system. At the same time, the world has relegated Bangladesh to the permanent status of an aid-dependent country . In fact, praise has been heaped upon successive Bangladesh govern­ ments by such agencies as the Asian Development Bank and the World Bank, for its policies of economic liberalization.

20 Strategic Studies EIR October 16, 1992 •

TABLE 1 FIGURE 1 Bangladesh: basic indicators Poverty in Bangladesh (percent of total population) Indicator Year Amount People with access 1990 115.6 million Population to health services 1987 Land area 14.4 million hectares People with access Arable land 13.0 million hectares to sanitation 1988 Life expectancy 1990 51 .8 years

Children dying before age 5 1990 0.88 million Adult literacy rate 1985 Malnourished children 1990 13.5 million under age 5 People below poverty line Children not in primary school 21 .3 million 1980-88

Under 5 mortality rate 1989 184 per 1,000 births Rural population 1990 Population per doctor 1984 6,730 0% 20% 40% 60% 80% 100% Population per nurse 1984 8,980

Primary pupils per teacher 1988 60 Sources: U.N. Human Development Report, 1991 ; Bangladesh Basic Information, 1992.

Sources: U.N. Human Development Report, 1991 ; Bangladesh Basic Information, 1992.

agencies, to systematically deny the means of development Bengal was the hub of India's engineering industry, besides to nations such as Bangladesh, must be totally reversed. having Calcutta as a port, during the British days. Bihar Bangladesh requires massive capital inputs , at the very least, mines were already opened and developed, serving the entire in order to tap its tremendous agricultural potential and create nation. By separating East Pakistan from this nexus of indus­ the infrastructure that might be able to support its population trial potential, the British rulers had consciously created an and industrial development (see Table 1 and Figure 1 for agrarian country with a significant size of population. This the lack thereof) . is the source of its extreme dependency today. Even so, among underdeveloped nations, aside from the post-Bretton Woods policies of the IMF, etc., Bangladesh Government offers free trade has been hamstrung by the legacy of British colonialism. Under these conditions, the policies now touted by the Bangladesh was originally the eastern section of the Indian Bangladesh elite represent a path to national suicide. state of Bengal. Aside from sharing the same language, the On June 18, Bangladesh Finance Minister Saifur Rahman western and eastern components of Bengal represented a presented the annual budget on behfllfof the ruling Bangla­ powerful economic potential in both agriculture and industry. desh Nationalist Party . The estima�d budget deficit for the In 1905 , Bengal was divided by the British, ostensibly for current fiscal year is taka 77.23 bipion (39 taka=$l), and communal reasons. Again, in 1947 , Bangladesh was separat­ the government hopes that taka 62. � billion of the deficitwill ed out of India as East Pakistan. For the British colonialists, be met through foreign assistance and the balance will be the plan was to separate the agricultural lands of East Bengal raised from new domestic sources ained by new taxes and g. from the industrial hub of West Bengal. Jute processing, for budget cuts. example, was set up in the British days in West Bengal, a Saifur assured the Parliament that the government's eco­ part of India, while the jute was grown in East Pakistan. nomic policy is aimed at providing basic needs to the poor, Beside choking the jute mills in India and affecting employ­ creating more opportunities for people to develop their skills, ment in West Bengal, the way was paved for capitalists from and building an efficient and welfare-orientedeconomy . West Pakistan to come in and take over the jute industry from After mouthing this litany, Saifurput on his IMF-World a distance of 1,000 miles. Bank cloak. Pleading for an export-led growth strategy, he While Bangladesh lacks mineral reserves, the adjoining argued that such a strategy coupled with a liberal competitive Indian states of Bihar and West Bengal possess more than economy and minimization of bureaucratic control would all 60% of the subcontinent's coal, iron ore , and manganese lead to development. reserves, besides such valuable ores as copper and uranium. He also warnedhis countrymen, 99 million of whom are On the eastern side, the Indian state of Assam is endowed living below the poverty line, "We ihave to bear in mind that with oil and various other mineral ores. Moreover, West there is no reform process without pain. All of us, including

EIR October 16, 1992 Strategic Studies 21 FIGURE 2 Distribution of Bangladesh's foreign trade (percent of total foreign trade)

Food and live animals (16.8%)

Clothing (32.3%)

Fish and preparations (11.7%)

Tea (2.6%)

Total trade = $116 million Jute (6.2'7'0)

Jute manufacture (20.2%) Leather manufacture (10.1 %) I

Source: Bureau of Manpower, Employment and Training.

the industrial entrepreneurs, will have to respond to this chal­ lenge by increasing efficiency." He also promised that steps FIGURE 3 would be taken to remove the existing high tariff wall and Distribution of labor force other administrative barriers to free trade . 1965 1988 Saifur's speech did not reflectthe reality of Bangladesh's Services economy. Only a few weeks after the speech, an advertise­ ment appeared in a Bangladeshi newspaper: "Urgent. Invest­ ors wanted. Nationalized banks and financialinstitutions pre­ pared to fund industrial projects on an emergency basis." The lack of law and order in Bangladesh has prevented investors from risking their money. Bangladeshi banks are also having difficulties getting their money back from large borrowers, most of whom are politically connected. The bad Agricultural debt situation had earlier forced the banks to deny large bor­ Source: U.N. Development Program. rowers new loans unless old loans are paid back. In short, the finance minister's export-led growth strategy has few takers. The country's export base continues to be cut-throat prices in the coming years-a prescription for the dominated by agro-products (Figure 2). In 1985, when Ban­ continuing impoverishment of the Bangladeshi population. gladesh's total export was $1.0 billion , raw jute and jute prod­ Sadly, one of Bangladesh's biggest export items is labor, ucts accounted for more than 60% of total exports. In 1989, which goes abroad in order to support families with the remit­ the exports rose to $1.2 billion, while the contribution ofju te tances which are sent home. and jute products dropped to 35%. However, the so-called non-traditional products that now dominate the export scene Weak infrastructure are also agro-based. Garments, tea, and leather, along with A glance at Bangladesh's infrastructure shows why, de­ jute and jute products, constitute 85% of total exports. Even spite large infusions of foreign assistance, Bangladesh has if exports are boosted, Bangladesh will be shipping out more remained an agriculture-based nation (Figure 3). agricultural products, made usable through application of Bangladesh's railroads corlsist of 2,818 kilometers of low-technology and high-intensity manual labor and sold at track, most of which is single Ii I e and narrow gauge. Almost

22 Strategic Studies EIR October 16, 1992 the entire northeast has remained without railroads. For 13 years, Bangladesh has not built a single railroad. Instead, the TABLE 2 money has been spent on building roads in a country which Outside foreign debt, by donor, impdrts 80% of its crude oil. Donor agencies and countries, as of June 1990 whose money was used to build these roads, influence the (millions $) decision against rail-building. Donor Debt Endowed with a weblike network of rivers, Bangladesh has some inland water transport. But inadequate water man­ Belgium $ 47.31 agement has turned most of these rivers to dry drains during France 141.62 Japan 2,625.08 the summer and into overflowing, uncontrollable water-carri­ Switzerland 6.08 ers during the monsoon season. Lack of attention in making United States 782.16 inland water transport, the cheapest form of bulk transporta­ OECD total 3,602.26 tion, a fast-growing infrastructural asset is another sign of OPEC 265.25 successive governments' disassociation from problems of the International agencies 5,594.98 Planned economies 253.20 physical economy. Others 93.69 The scene in the power sector is equally bleak. Heavily Total debt $9,809.40 dependent on foreign grants in this sector, Bangladesh's pres­ ent generation capacity is about 2,200 megawatts (MW), of Source: Bureau of Manpower, Employment and Training. which 1,864 MW capacity is located in the East Zone. Most of the country's power generation comes from natural gas. Bangladesh has estimated reserves of 15 trillion cubic meters But the successes of the last decade have not been main­ of natural gas, of which 500 million cubic meters is being tained. The government's target to produce20 million tons of consumed daily, mostly in the power and fertilizer sectors. rice in 1991-92 has fallen short by 10%. Wheat production has With such weak infrastructure, Bangladesh's industrial fallen almost 15% from its mid-1980shigh of 1.1 million tons. sector continues in a nascent state . With only 9.8% of its With little irrigation available during the dry season and labor force involved in the industrial sector, Bangladesh's shortage of drainage when the rain swamps the country , Ban­ industrial output is mostly related to agro-products directed gladesh's food production has remained enslaved to the va­ for exports . garies of rainfall. Unless a prod\1ctivity breakthrough is On the other hand, the service sector in Bangladesh has achieved, the country's dependency on foreign food will skyrocketed. This is due to policy influencefrom the donor surely increase. Inadequate water management has allowed agencies, which have pushed investment into private road the rivers to silt heavily, causing increasing drainage prob­ transport, and public sector investments in health, education, lems and pre-harvest crop losses. and social services. Most of these service jobs are low-paying and act to perpetuate poverty. The dependent economy Bangladesh's weak infrastructure and pressures in the Agricultural success wrong direction coming from donor agencies have taken their However, for all this, Bangladesh remains an indepen­ toll. Even with substantial foreign aid and grants, Bangladesh dent country because of its success during the 1980s in ag­ has acquired adebtof$12.3 billion, 55% of its GNP. In 1980, ricultural production. This sector alone provides 50% of the Bangladesh's external debt was $4. 1 billion. GNP, absorbs 75% of the labor force-if agro-product manu­ Debt service payments of $350 million annually account facturing is taken into account-and earnsmore than 50% of for 22% of Bangladesh's total exportearnin gs. What is push­ total export earnings. ing Bangladesh into a bottomless pit is its perpetual deficit Bangladesh is primarily a rice-growing country with in balance of payments in its externaltrade account. In 1989- about 13 million hectares (32 million acres) under cultiva­ 90, the deficitwa s $2.24 billion; in 1990-91, the deficitfell tion. Rice is grown on 68% of cropped areas , yielding about to $1.75 billion, and the estimated deficit in 1991-92 was 18 million tons of rice. Jute takes up 24% of cultivated land, $1. 51 billion. Bangladesh's trade deficitand debt payments while wheat is grown on 4% of the cultivated land. together exceed the total export earningsof 1990-91. In the 1980s, defying natural calamities, Bangladesh did Within the usurious framework of the IMF, Bangladesh achieve a significant growth rate in foodgrain production. can only improve its external account deficit by squeezing Bangladesh's aggregate rice production grew from 15.7 mil­ imports. Since about 50% of imports are caused by food and lion tons in 1980-81 to 18 million tons in 1990-91. However, fuel imports, this squeeze will only exacerbate the economic due to lack of inputs, the rate of foodgrain production never crisis and will be politically unacc�ptable. caught up with population growth, and Bangladesh imported Bangladesh has become more apd more dependent on for­ cereals throughout. In 1976, Bangladesh had imported 1.87 eign aid and grants over the years. On April 23 , a W orId Bank­ million tons and in 1990, imports stood at 1.73 million tons. led aid consortium meeting in Paris had pledged $2.2 billion,

EIR October 16, 1992 Strategic Studies 23 which is more than Bangladesh's total annual export earning, Rahman nationalized most industries, creating an inhospita­ in fresh aid and grants for the fiscal year beginning in July. ble climate for multinationals: and foreigners. The period This amount is in addition to $600 million promised recently between 1971 and 1975 saw the rise of a state sector which to finance the long-term and medium-term action plan for became the instrument of the so-called nationalists in their floodprot ection. As a price to be paid, the financeminister has quest for power. promised the consortium that Bangladesh will cut electricity The post- 1975 period, which began with the murder of distribution, reduce "excess" manpower, and improve mar­ Sheikh Mujib (see accompanyiJng article on page 25) and a keting and management practices in the public sector units. series of military coups, produced a new affluentelite . This The government has already decided to cut at least 100,000 group draws its succor from military coups and has pushed government and public-sector jobs in the next three years. the country firmly toward the :West. Denationalization, or Mobilization of domestic resources remains a severe the privatization of the state sector units, in industries, trade, problem. In 1989, a World Bank study showed that $4.6 bil­ and banking has provided an opportunity for the new rulers lion of project aid could not be utilized by Bangladesh because to create a group of entrepreneurs who would work with the the country could not raise the portion of local investment government and would also cooperate to bring in foreign without which the projects could not be funded. The study investments. later became a source of pressure on Bangladesh by the donor In this context, foreign aicjl and grants have played a . agencies to force a cut drastic cuts in government spending. key role. Foreign assistance became the key source of Government austerity, however, is beginning to meet capital infusion and as more: foreign grants flowed in, resistance. Confronted with growing dissension within the it further enhanced the manlipulative leverages of the trade unions, Prime Minister Begum Khaleda Zia said in powerbrokers. December: "We want to build up a market economy infra­ How corrupt is this process? Dr. Rehman Sobhan, an structure, and with this end in view we are giving special eminent Bangladeshi economi$t who served as a member emphasis to the growth of the private sector." She warned of the Planning Commission during 1972-74, has his own the trade unions that " 1 00% of industrial units [in the public version: "Many state functionat1ies, however, seek more aid sector] will be handed over to the private sector and export­ to serve as a cushion for their mahagerial inadequacies. Thus, oriented units will be encouraged." In fact, since 1975, the for example, the capacity to ensure capacity utilization of government has sold or returnedto former owners 640 indus­ mechanized irrigation facilities provided by the state to the tries, reversing a trend that started shortly after Bangladesh farmers, generated pressure for !more aid-financed import of had won independence from Pakistan in 1971, when the irrigation equipment rather than for full utilization of in­ government nationalized almost all major industries and fi­ stalled capacity. Thus, new aid becomes the main source for nancial institutions. The trade unions , led by the largest union expanding acreage under irrigation or even for maintaining SKOP, claim that the privatization will result in large-scale current levels of irrigation. Aidl in these situations becomes redundancies and closing down of many industries. the softoption designed to mitigate the consequences of dete­ In November, hundreds and thousands of jute mill and riorating operating performance within the economy. Given textile workers had uprooted railway tracks and barricaded the contingent benefits which accrue to particular classes roads, protesting the government's privatization schemes. fromaid , we can get some insight into the low and deteriorat­ ing performance of some state-IiInenterpr ises." Politics of aid How does aid dependence affect national sovereignty? After the British departed from the subcontinent in 1947, Economist Debapriya Bhattacharya has pointed out that the Bangladesh became the eastern wing of Pakistan. Until inde­ "overriding concerns of the donors, their normative biases pendence in 1971, Bangladesh was dominated by industrial and their perceptions of their own particular interests in Ban­ and feudal families of West Pakistan. Families such as gladesh" became dominant factCllrs in economic policy. One Adamjee and Ispahani became household names in East Paki­ study identified the World Bank and the U.S. Agency for stan because of the control they exerted over its industry. International Development as the donors enjoying a near These families succeeded in grabbing assets and establishing monopoly in the use of aid conditionality for forcing policy new assets in Bangladesh under the pretext of developing in­ changes in Bangladesh. digenous import-substituting capabilities. Thus, it created Demands often came out openly. Speaking at the Dhaka "domestic" entrepreneurs who after 1971, when Bangladesh Chamber of Commerce on Jan. 17, 1992, the U.S. ambassa­ became independent, leftthe country lock, stock, and barrel dor to Bangladesh said that Bangladesh could not afford to for West Pakistan. While these West Pakistani entrepreneurs continue to ignore the economic benefits of privatization. had kept the foreign investors and multinationals at bay for When the Bangladeshi foreign minister was grilled by news­ two and a half decades, their abrupt departure in 1971 created men about the conditions laid down by the donors, the minis­ a vacuum. ter agreed that the "conditions attached to the aid are tough" After 1971, the governmentof President Sheikh Mujibur and some conditionalities make' it difficult to decide where

24 Strategic Studies ElK October 16, 1992 to utilize the money. Privatization of the economy and selling off the public sector units, which Prime Minister Khaleda Zia has claimed as her government's independent decision, had long been the goal of the donor agencies. By 1989, one report says, as The assassiriation many as 640 enterprises have been denationalized under the allegation that state sector units are ill-managed causing low of SheikhMUji b productivity. Although the argument has never been proven, in the sense that the private sector in Bangladesh performs by Ramtanu Maitra any better, the uncritical acceptance of this viewpoint indi­ cates the power and influenceexerted by the donor agencies. The resident representative of the World Bank at Dhaka has Bangladesh Prime Minister Begutn Khaleda Zia's action in noted that the "opportunity for aid-givers to impose their September against the cadre-bas¢d Freedom Party , led by views on Bangladesh was made all too clear, when it became two professed killers of the country's founding father, Sheikh the accepted view that Bangladesh simply could not manage Mujibur Rahman, could have a resounding impact on Ban­ her economy without the assurance that large amounts of aid gladesh's body politic. Coming alongside memories of the would be forthcoming." vicious killing which wiped out alII of Sheikh Mujib's family except two daughters who were abroad on that fateful day, The growing crisis leaving none to bury the dead, the action against the Freedom Bangladesh's aid addiction does not end with only the Party may open a political Pandora's box. domination of the donor agencies at economic policy The arrested leaders of the Freedom Party were two of making. Bangladesh has entered into a structural adjust­ the four important members of a team of 15 that killed Sheikh ment program in 1987 with the IMF and World Bank for Mujib in 1975. Both were given free passage by Ziaur Rah­ a period of three years ending July 1990 . The result: man, Begum Khaleda's husband who became President, only worsening performance of Bangladesh's physical infra­ to be assassinated in 1982. The Freedom Party was formed structure. Bangladesh's growth rate fell to 2.8%. The IMF in 1986 during former President H.M. Ershad's reign, and diktat to enhance foreign investments into Bangladesh the two assassins were allowed t� come back home to open drew no response from foreign investors. Bangladesh's a political office in Dhaka. Subsequently, Farooq Rahman, Prime Minister Moudud Ahmed, under President Ershad, one of the two Freedom Party leaders, ran unsuccessfully took a much-publicized tour through the West urging against General Ershad in a presidential contest. The recent investors to come to Bangladesh while assuring them that police raid gathered evidence showing that the assassins of "Bangladesh would wipe the smile off the Asian tigers ." Sheikh Mujib were involved in arms smuggling in collusion His efforts drew a blank. with the right-wing Islamic party , Jamaat-e-Islami. Jamaat However, opposition to such aid addiction and kow­ is hated by the majority of Bangladeshis for lending support towing to the donors is gathering force. Dr. Iftekharuzza­ to the Pakistani Army during tbe liberation war of 1971. man of the Bangladesh Institute of International and It is also widely known that Begum Khaleda's Bangladesh Strategic Studies, at a seminar in February 1992, attacked Nationalist Party had made poli�ical arrangements with the the government's aid-dependent development strategy and Jamaat during last year's general elections which had brought called for a self-imposed moratorium in its external re­ her to power. source inflow for a decade or two. He pointed out that To know the real story behind the assassination of Sheikh the present strategy is "expanding and strengthening the Mujib on Aug. 15, 1975, is impot'tantnot only for the citizens network of an aid-sustained elite, which flourishes in its of Bangladesh, but also for the people of the entire region. exclusive position by trading poverty while the poor Once the veil is finally liftedfrom Sheikh Mujib's assassina­ continue to be poorer." tion, a number of events in the region that followed the Short of such a drastic measure, Bangladesh's elite will assassination become clear. be driven to sell the nation's labor power as a slave pool . The The 1971 liberation war in which India, and Mrs. Indira government has set up an export-processing zone in the port­ Gandhi in particular, had played Ia key role, led to the forma­ city of Chittagong in southern Bangladesh which caters ex­ tion of Bangladesh and the humiliation of the much-vaunted clusively to export-oriented industry. Plans are afoot to set Pakistani Army. This result did not please Washington, and up similar export-processing zones in Dhaka and the coastal President Nixon made that known when he ordered the Sev­ city of Khulna. Already, textile factories are churning out enth Fleet to enter the Bay of [Bengal, ostensibly to help textiles for the world market, sold under all different national rescue the Americans stationed in Bangladesh. At the time, labels. Bangladeshi labor is, evidently, among the cheapest Washington's South Asia poliqy was firmly in the hands in the world--oneto two cents an hour. of Henry Kissinger. Under Kissinger's prompting, Pakistan

EIR October 16, 1992 Strategic Studies 25 was working on behalf of the United States to help develop Failures to the fore a channel to China so that Kissinger and Nixon could meet Developments within Bangladesh were no less ominous. with the aging and fading Mao Zedong. The objective was "Bangabandhu" (Friend of Bengal) Sheikh Mujibur Rah­ to achieve a "balance of power" against the Soviet Union and man's rule had soured almost as soon as it had had begun with India with the help of Pakistan and China. The freeing of Bangladesh's 1971 liberation. After proclaiming a socialist Bangladesh showed that Pakistan was less invincible than form of government, Sheikh Mujib had little means to give what Washington would have liked Beijing to believe, and it that shape, and quickly became dependent on foreign aid that India had surely gained by clipping Pakistan's eastern and grants. On March 26, 1972, Sheikh Mujib took over wing. ownership of all assets belonging to the Pakistani nationals India was doubly aggravating to Kissinger and company. who had left Bangladesh in the wake of the liberation war. The Indo-Soviet Treaty of Peace, Friendship and Coopera­ But it was a hollow victory: Pakistani entrepreneurs had al­ tion was also signed in 1971, and it seemed that Sheikh Mujib ready stripped the facilities, leaving behind only a huge would join Washington's much-dreaded "Indo-Soviet Axis." amount of liabilities. That did not happen, because neither India nor the Soviet Through his proclamation ofesta blishing a socialist state, Union could or would come up with what was considered to Sheikh Mujib wanted to give peasants, students, and work­ be generous aid to Bangladesh. ers, who had fought the liberation war, an equal share. But On May 18, 1974, India detonated its first nuclear explo­ rampant corruption within the nationalized units and addic­ sive, and immediately drew the wrath of the international tion to foreign aid left Sheikh Mujib politically weak and community. Although others criticized India for its nuclear isolated . His three closest economists, Nirul Islam, Rehman ambitions, no one attacked India as viciously as did the Unit­ Sobhan, and Anisur Rahman, had all joined the Planning ed States and China. Pakistani Foreign Secretary Agha Shahi Commission, but soon left. Anisur Rahman went on record journeyedto Beijing in June, and China announced "full and saying that the governmentmust go without aid, and that this absolute support to Pakistan against foreign aggression and was the only way to change the institutions as well as the interference, including nuclear blackmail." "very social landscape of the nation. " Kissinger, who had described India's role in Bangladesh Attacks against Sheikh Mujib began to show up from in 1971 as similar to "Hitler's reoccupation of the Rhine­ different quarters. The Banglade$hi middle class, along with land," came to India in October 1974, ostensibly to talk it the military, were also feeling the pinch of a weakening over with Mrs. Gandhi. The two-day trip came to nothing. economy. Talk surfaced that Sheikh Mujib's relatives were Mrs. Gandhi, showing her contempt, chose to stay away amassing wealth. Sheikh Mujib saw it all, but did not respond from New Delhi the day Kissinger arrived. in any useful way, and when he did, such as when he made By then, India had drawn further ire in Washington, Lon­ Bangladesh into a one-party natiop, the effect was disastrous. don, and Beijing. In the summer of 1974, the mountain king­ In February 1974, Pakistani Prime Minister ZulfikarAli dom of Sikkim, bordering Chinese Tibet, joined the Indian Bhutto came to Bangladesh, ostensibly in order to "heal nation through a bill passed in the Sikkim Parliament. Sikkim wounds." While the anti-Mujib and pro-westerncrowd gave figured as a linchpin in the British dream of forming the Bhutto a rousing welcome, the peasants, students, and work­ "Great Himalayan Kingdom" as a geopolitical counter to ers shouted: "Butcher, go back home!" Pakistan claimed that India. The British operation was put into force when an Sheikh Mujib had organized the counter-demonstration, but American, Hope Cooke, was married off to the Sikkim mon­ there was little doubt that the polaltizationbetween pro-libera­ arch. While Washington has since accepted Sikkim's union tion war and anti-liberation war was complete. with India, China so far has not, and its printed maps of the region prove the point. The drumbeat for the kill However, by the end of 1974, a different wind began Those in Bangladesh who kept their ears close to the to blow across India. General economic problems, intense ground claim that the assassination plot had been in the works pressure fromthe International MonetaryFund to "stabilize" for quite some time before it was carried out. In 1972, Lieu­ the Indian economy, and general price rises put Mrs . Gandhi tenant Ziauddin, a Maoist military officer, demanded Sheikh on the defensive. Civil disobedience and anarchy broke out Mujib's removal in an article in Holiday, a magazine owned all over the country, particularly along the Gangetic plain, by a Maoist elite. Sheikh Mujib called in Ziauddin and took as a western-backed J.P. Narayan decided to bring the gov­ him to task for what he had said,: but did not fire him. That ernmentdown through organized anarchy. While opposition came later, and Ziauddin went underground to organize. leaders were planning to overthrow Prime Minister Gandhi, Ziauddin's comrade-in-arms, Col. Abu Taher, who had en­ she herself was quietly working toward imposing an internal joyed a brief spell of glory in November 1975 wen he had emergency. On June 25, 1975, the state of emergency was organized a coup, and who was later hanged by Ziaur Rah­ imposed, and a large number of opposition leaders were man, was also firedfor radical activities. imprisoned within the firstfew days. There were other ominous signals as well. The explosion

26 Strategic Studies EIR October 16, 1992 of the Soviet-built urea plant at Ghorasal, 30 miles northeast to a senior Awami League memb¢r, Tajuddin Ahmed was of Dhaka, on Sept. 30, 1974, was the result of an act of approached by "some Americans" in 1975. Tajuddin duly cau­ sabotage. The temporary closing down of the Ghorasal urea tioned Sheikh Mujib of the impendiI)g danger. plant seriously hurt Bangladesh's agriculture. Besides, Ban­ No matter what the plotters might have believed about gladesh got into a desperate bind to generate foreign ex­ their motives, the event of the assassination and what follows change to import more urea. The money could not be gotten, makes clear the strategic result: The assassination occurred leading to an almost 30% drop in fertilizer consumption in on the morningof Aug. 15, the day India celebrates its inde­ 1974-75. pendence. This was done most likely because the plotters Internally, those who hated Sheikh Mujib and wanted his wanted to convey a message to Mrs . Gandhi, given that rule to end, did not lack outside support. Kevin Rafferty, Sheikh Mujib had remained Mrs. Gandhi's best friend among writing in the Financial Times of London on June 6, 1974, the heads of state. Franda, a staff member of the American had already called for halting aid to Bangladesh. Rafferty Universities Field Staff, headquartered in Hanover, New said of the party Sheikh Mujib led: "Aid merely allows the Hampshire, wrote cryptically that the date was "one of the Awami League to live off the fat of the land. It would be far many ironies ...of the case." better to let the country fend for itself, let the people suffer, Those "ironies" include: and kick the rulers out." • Beijing recognized Bangladesh on Aug. 31, 1975, six­ Kissinger was in Dhaka on Oct. 30, 1974, and met with teen days after Sheikh Mujib' s murder. When Ziaur Rahman Sheikh Mujib. What happened between them is a matter of became President, Bangladesh began its military relationship conjecture, but at a press conference in Dhaka, Kissinger with Beijing, ostensibly in order to protect itself from the told newsmen that the talks had produced "some progress "threats of Indian invasion." towards straightening out some of the difficulties. " Kissinger • Saudi Arabia, which had opposed the liberation war evaded their queries about what these "difficulties" were, but of 1971 and the formation of Bangladesh, also opened diplo­ dropped hints that he, and the United States government, matic relations soon afterSh eikh Mujib was killed. believed that U.S. aid was being squandered-a U.S. green • Pakistan Radio on Aug. 15, in announcing Sheikh light to Mujib's opponents . Mujib's assassination, said that "the People's Republic of Bangladesh" had been changed to "Islamic Republic of Ban­ The final act: the assassination plots gladesh." Challenged by India, this was denied by the new According to sources in Dhaka, there were four assassi­ Bangladesh government. Hearing about the coup, Mrs. nation plots to eliminate Sheikh Mujib. The plot that got the Gandhi had put the paramilitary forces stationed along the green light involved 15 Army men, four of whom were major Bangladesh borders on alert. actors . Two of them were related through marriage, and • In the interim cabinet of Sheikh Mujib during the liber­ the other two were dismissed from the Army, and hence ation war, there was one person, Khondkar Mushtaque disgruntled. According to Moudud Ahmed, who later be­ Ahmed, who was regarded as pro-West and pro-Islamic came prime minister during General Ershad' s presidency and state. Khondkar Mushtaque became President upon Sheikh is now languishing in jail for amassing a disproportionate Mujib's assassination. amount of wealth, "In the course of time it became clear that • Following the November coup which had brought the the Army officers who took the lead in the operation had no Maoist Army officer Col. Abu Taher to power for a brief plan of their own. The question remains why did they do it, period before Ziaur Rahman took over and hanged Taher, then, and for whom?" the remaining four interim cabinet members were slaughtered All IS members of the plot were duly protected by Ziaur in their prison cells in the Dhaka Central Jail. Rahman when he became President following a series of • Moudud Ahmed, in his monograph for the U.S. Heri­ coups by military men in November 1975. tage Foundation on the Mujib era, celebrated the removal' of Two other stores were making the rounds those days in Sheikh Mujib. He said: "Anyhow, that was the end of Sheikh Dhaka. One involves Ziaur Rahman, who was then a major Mujibur Rahman and the beginning of a new era for Bangla­ general and aspiring to become the chief of Army staff. Ziaur desh. The death of Mujib changed the entire perspective of Rahman wanted to impose martial law in Bangladesh, and Bangladesh politics. The new journey began with a general had received enthusiastic support from then U. S. Ambassa­ sense of relief in the mind of the people. " dor David Boster. Sheikh Mujib had, however, preempted The assassination moved B�gladesh out of India's orbit the plan by making Maj. Oen. Safiullah chief of staff, super­ and placed it firmly in the U.S.-China-Saudi Arabia nexus seding Ziaur Rahman. which ensured more cash for the elites and more arms for the The second storywas reportedby American journalistMar­ military. Tbe "new journey," not completely different from cus Franda. Franda, a shadowy figure-and the Indian govern­ Sheikh Mujib's as far as the economy is concerned, formal­ ment will confirmthat-had managed to bein Dhaka a few days ized the current system of foreign debt, foreign grants, and before the Aug. 15 assassination. Franda says that according foreign diktats.

EIR October 16, 1992 Strategic Studies 27 TIillFeature

LaRouche: 'I cIo know how to , stop this depression'

An interviewwith Lyndon H. LaRouche, Jr.

This interview was conducted on Sept. 20, 1992 , by theRadio Todelar network of Colombia, and was broadcast on Todelar's 28 member stations. Luis Enrique Rodriguez Lopez, of the Sunday program "Todelar Reports," was the interviewer.

Q: Today we have a very special personality as the invited guest of our Sunday program. We are talking about Lyndon H. LaRouche,!independent candidate for the presidency of the United States, and at the same time a political prisoner in a U.S. jail. Lyndon H. LaRouche is a 68-year-old man, an opposition political leader in the United States, and he was sentenced to 15 years in prison in January 1989. He is married to Helga Zepp-LaRouche, a German citizen:who is fully with him and supports him in his cause. LaRouche, from behind bars , decided to run for President of the United States, to try to bring about profound changes favorable to that power, especially regard­ ing the handling of the economy, and which would at the same time help the Third World countries beset with poverty and social stagnation, largely due to their growing foreign debt. In this presentation of "Todelar Reports ," we shall speak with Lyndon H. LaRouche about the foreign debt, the drug trade, coffee, the economic movements today being felt in Europe , the Maastricht Treaty , which in fact today is at the center of events in France-in short, we shall talk about various subjects of great interest to Colombians. Of course, we shall also refer to the presidential campaign in the United States, to the views of Lyndon H. LaRouche regarding the most likely candidates for President, George Bush for the Republican Party, who :is seeking reelection, and the Democrat Bill Clinton. Lyndon LaRouche, the political prisoner and the independent candidate in the U.S. presidential elections which will occur next NOVl 4, is our personality on

28 Feature EIR October 16, 1992 A mass rally in Mexico Cityin support of President Jose Lopez Portillo's nationalization of the banks, Sept. 13, 1982 . 1t was this adoption of Lyndon LaRouche's policy recommendations that triggered the panic button among U.S. establishment circles, leading to the prosecution of LaRouche. Inset: LaRouche speaks at the congress of the Mexican Labor Partyin May 1982 , outlining his program fo r economic reform.

"Todelar Reports." Appeals Court , more than 1,000 legal experts and lawyers But before we begin our dialogue with Mr. LaRouche, from throughout the entire world denounced the violation of who by the way will be speaking from a telephone inside the LaRouche's constitutional right to an impartial trial. In a prison where he is being held, let us firstli sten to what EIR ' s public statement signed by several of these, they said: 'We magazine Resumen Ej ecutivo says about the status of the are troubled by the violations of due process and of funda­ LaRouche case. mental rights which appear to have occurred in this case. We further believe if the rulings of the [District] Court are Announcer: "The LaRouche case has been presented to the allowed to stand as precedent, this represents a potential Inter-American Commission on Human Rights of the Organi­ threat to any politically-active citizen of having their voices zation of American States, and was formally presented to the be silenced by abuse of the prosecutorial and judicial Human Rights Commission of the United Nations Organiza­ systems. ' tion, by the International Progress Organization (IPO) in "Given the political and constitutional importance of the February 1991. The IPO petition, numbered 1503, states: LaRouche case, and also given the importance of Lyndon H. 'Documentation exists to suggest that those in government LaRouche for Ibero-America, from his support for Argenti­ who want to eliminate the ideas of Lyndon LaRouche and na's fightfor the Malvinas and for Panama's sovereignty to his associates misused their access to state power in order to his concepts on economic integration of the Ibero-American silence the spread of beliefs it judged to be "extreme" or nations and the fight against drugs, we call upon the OAS "threatening" to the prevailing politicy trends.' and the U.N.O. to investigate this violation of human rights "At the meeting of the European Conference on Security in the United States and we stand in solidarity with the request and Cooperation-the so-called Helsinki Accord-held July of his attorneys for a new trial and for Lyndon H. LaRouche's 19 in Copenhagen, Denmark, former U. S. AttorneyGeneral immediate release from prison." Ramsey Clark presented LaRouche's case, and said that 'there was no intention of having a fair trial,' and that Q: This is the text ofthe position held by Resumen Ej ecutivo LaRouche and his co-defendants were tried for 'economic regarding the freedom of Lyndon LaRouche, today a candi­ crimes that did not exist, because this was a political move­ date for the presidency of the Un·ted States of America .. .. ment, it was not a for-profitactivity and wasn't intended to Our firstquestion to Mr. Lyndon LaRouche is the follow­ be a for-profit activity, it was a political movement. ' ing: What were the charges that led to your conviction and "In an amicus curiae brief presented to the U.S. federal jailing for 15 years in your country?

EIR October 16, 1992 Feature 29 LaRouche: Yes, the charges that were made up involve propose? What, concretely, would happen to the economy $294,000 in loans, but the charges are irrelevant. The pur­ of the United States? And what would happen to the banks? pose of putting me in jail was to put me out of circulation, LaRouche: The banks are already dead. The commercial after they had tried and failed to arrange my assassination. banks of the United States are already bankrupt.

That is, they tried to assassinate me in October 1986 in an I operation that involved several institutions of the state and Q: But, there are some people who say that you defend federal government in Virginia. But the White House inter­ some interests that are foreign .0 the United States, and that vened to prevent them from conducting the assassination. So your policy would directly affect the U.S. banks. Is this they stopped it. Therefore, after that they had to put me in true? prison as the alternative, because they could not pay the LaRouche: This is a question of equity. If we continue to political cost of having me killed. Then they made up the try to maintain this bankrupt b�nking system, we are going charges, which are entirely a fraud, which were constructed to murder hundreds of milliorts of people and we would with the purpose of putting me in prison, actually for 10 collect interest payments agairtst the lives of hundreds of years . They think I would be dead or too old or something millions of people. It would be :more criminal than Hitler to afterthose 10 years .

Q: Mr. LaRouche, the purpose of your imprisonment was so that you would not participate in politics; nonetheless, you are doing so as a United States presidential candidate. LaRouche: Actually, they are not trying to take me out of politics. It's something more serious. As many people recall, in 1982, particularly the spring and summer, most of the Who is Lyn don LaRouche? countries of Central and South America were in trouble over the debt. In the middle of August of 1982, the Mexican debt Lyndon LaRouche has been Ii controversial international blew up, and the entire international monetary system nearly public figure for two decades, because of his opposition collapsed that month .. .. to neo-malthusian economic and popUlation policies; his campaign for global monetary reform based on equity for Q: Since when, and why, have you defended causes that the Third World; and his role in exposing the powerful apparently go against your country, such as the foreign debt, financial interests which control international drug-traf­ U.S. expansionism, etc.? ficking. LaRouche: The problem is that the debt of these countries Since Jan. 27, 1989, LaRouche had been held as a is not an honorable debt. Under natural law , the law of equity, political prisoner of the Bush administration, serving a this is not a honorable debt. These countries have paid the IS-year sentence at the Rochester, Minnesota federal pris­ debt many times over. The debt grew because of unlawful on as a result of one ofthe most shocking judicial railroads and immoral policies of the international financial institu­ in U.S. history. The United Nations Commission on Hu­ tions. Now what's happening is this: In the past week, the man Rights announced on Feb. 7, 1992 that it is investigat­ international financial system has collapsed. Nothing can ing his case as a possible violation of human rights by the save the Anglo-American financial system centered on the U.S. government. International Monetary Fund [IMF] . It cannot be saved. It's LaRouche was born on Sept. 8, 1922 in Rochester, gone, it's finished; what is left ofit cannot be saved. Nothing New Hampshire. He attended Northeastern University can save it. The policies made by the United States govern­ from 1940-42 and from 1946-47, and served in the China­ ment and others , especially in October and November 1982, Burma-India theater during World War II. He was married crushing Mexico, and crushing the other nations of Central on Dec. 29, 1977 to German political leader and author and South America, have led to the destruction of the United Helga Zepp-LaRouche. States itself. Now we have come to the point where my LaRouche describes himself as an economist special­ policies are vindicated and the policies of my competitors are izing in physical economy, and lists as a leading accom­ discredited. I do know how to stop this depression, they do plishment of his adult life his contributionsto the advance­ not. They are not willing to accept the policies that would ment of economic science. He is the discoverer (1952) of stop it . I am running because I can stop this depression and what is today known as the LaRouche-Riemann method of no other public political figurein the United States could do economic analysis, the most a¢curate method of economic it . forecasting in existence. His work in economics is an advancement of the American System of Political-Econo­

Q: ... And what would happen if some countries, some my (of Gottfried Leibniz, Alexander Hamilton, Friedrich groups of countries, would stop paying the debt as you

30 Feature EIR October 16, 1992 pay the debt in the present terms. tions of Ethiopia and Somalia, in one country afteranother.

Q: Mr. LaRouche, there is European monetary disorder to­ Q: You have said, Mr. LaRouche; that the foreign debt is day; in fact, today, Sunday, they are deciding in France the a bomb for your country, the Uni� States, that could be future of the Maastricht Treaty. How would this European triggered by the Third World nati�ns. Please explain, for monetary disorder, that is the situation on the stock markets those listening today to Radio ToddIar,what it would mean of London, Paris, all the major world markets, the situation for some Latin American countries til stop paying the foreign in Italy and so forth, how does this situation directly affect debt. Colombia? LaRouche: What I proposed in 19$2, in principle is correct LaRouche: What has happened in Europe is simply a result today. The debt is injustice. We rec:all how this debt devel­ of the U. S. system. And the collapse of the U. S. system has oped. The Argentinian debt is completely fraudulent. That led to the breakdown in Europe. The effect on Central and agent of Henry Kissinger, Martinez de Hoz, created an illegal South America, if these countries accept these IMF condi­ debt in Argentina. But in general, this debt was created, tions, and do not resist; then we will begin to see the condi- in the present form , beginning in 1974-75 with Eurodollar

List, and Mathew and Henry Carey). He is the author In 1978, LaRouche commissioned the book Dope, of the 1984 textbook, So, You Wish to Learn All About Inc., which exposed the "citizens above suspicion" on the Economics? and the 1992 trilogy The Science oj Christian financial side of the global drug traffic, and traced ADL Economy, written while in prison, among hundreds of ties to the international drug cartel. A bestseller, Dope, other books, articles, and economic policy proposals. Inc. is now in its third edition. In 1974, LaRouche founded and became an editor of EIR . In 1976, he was among the founding members of the Goals for America Fusion Energy Foundation, a nonprofit scientific founda­ LaRouche has emphasized the need for a return to tion which worked to achieve the rapid development of classical art , music, science, and culture as an antidote to nuclear energy technologies, a revitalization of the space today's prevailing moral degeneration and cultural pessi­ program, and increased American participation in experi­ mism. He has outlined three goals forour nation: 1) eradi­ mental work on the frontiers of science. cating poverty across the globe; 2) establishing a durable In 1977, LaRouche first publicly proposed the U. S. peace among nations; and 3) colonization of the Moon crash-basis development of anti-ballistic-missile systems and Mars. based on new physical principles, what later became the During February and March 1992, in two national Reagan administration's Strategic Defense Initiative. In television broadcasts, LaRouche presented to American the months leading up to President Reagan's March 23, voters his unique program to reversethe economic depres­ 1983 announcement of the sm, LaRouche collaborated sion, with the creation of 6 millidn new jobs within the with the National Security Council in formulation of the firstyear of his presidency . LaRoucthe's approach features policy. the reshaping of the Federal Reserve System into a new LaRouche ran for the presidency in 1976, 1980, 1984, National Bank of the United State$, to direct $300 billion and 1988, and campaigned for northern Virginia's 10th of low-interest credit each year into government-funded Congressional District seat in 1990. infrastructure projects of water management, transporta­ He names as a leading enemy the Anti-Defamation tion, energy production, health c�e, and education ser­ League of B 'nai B 'rith (ADL) and its collaborators within vices. the U.S. Department of Justice and federal executive-a In conjunction with this econ�mic recovery program combination he has nicknamed the "Get LaRouche task at home, LaRouche urges deepen¢d economic collabora­ force." This group's animus toward him developed fol­ tion with western Europe and the : nations now emerging lowing an April 1975 visit by LaRouche to Iraq, at the from under the yoke of communiSm in large-scale devel­ invitation of Saddam Hussein's Baath Party . LaRouche opment programs to end the famine and disease now en­ proposed a Middle East peace plan based on Arab-Israeli gulfing the Third World. The Bretton Woods economic cooperation for the development of the region. En route system which has enslaved the developing sector and cre­ back to the United States from this trip, LaRouche pro­ ated economic crisis in the West, I and the Versailles sys­ posed his International Development Bank program for tem upon it was based, says LaRojJche, are rotten beyond global monetary reform and development at a press con­ repair, and must be replaced wit� a just, new world eco­ ference in West Germany. nomic order.

EIR October 16, 1992 Feature 31 refinancing. Then the IMF forced the devaluation of the cur­ economy in Colombia, as it has looted every other economy rencies of these countries. Debt was pyramiding by using involved, including the economy of United States. If we do fraudulent tactics . . . by using political muscle to force not ourselves get rid of the drug trade, the nations involved countries to take on this indebtedness, and then forcing the will not survive. application of conditionalities that completely looted these countries. What we have to create today is an equitable sys­ Q: If the United States has not yet done anything, then what tem of economics and financeamong the nations of the world. is the way to halt the terrorism that Colombia is experiencing Not like a debt-collecting world system, but a system of today , the violence and terrorism that Peru also is experi­ friendship and cooperation among sovereign nation-states. encing? LaRouche: According to my informed opinion, the United Q: Mr. LaRouche, in line with this response and given that States government has not fought against drug trafficking. you surely know the Colombian case very well, what relation The United States has done sel¢cted prosecutions for propa­ do you see between the drug trade and the Colombian ganda purposes, of a few celebrated cases, but the United economy? States government has acted to prevent effective action LaRouche: Yes, I know. Colombia was counted as an ex­ against the drug traffickers. This is a matter of policy. Re­ ceptional case, as was explained by former President Belisa­ member that during the late 1970 petroleum crisis, petrodol­ rio Betancur in 1983 at the Non-Aligned meeting in New lars were the world financial system. From the beginning of Delhi, India. The President and other people in Colombia the 1980s, narcodollars and weapon dollars were the basis of thought that the Colombian situation was special and was not the international financial system. And those in the United in the trouble that many countries in Ibero-America were in. States government that may not be involved directly in drug But, since then, because of the drug problem, the collapse trafficking, are otherwise involved in supporting a monetary of the economy, the civil war conditions under narco-terror­ system which itself depends upon narcodollars. ism and so forth , Colombia has moved right into the same kind of problem, generally, that the other countries have, Q: ...We have here the prologue to The Power of Reason, financially. an autobiography which politicaa prisoner Lyndon LaRouche has written; he says that it was on Jan. 27, 1989, scarcely a Q: During this period, Mr. LaRouche has spoken exten­ week after George Bush was inaugurated President of the sively of the efforts Colombia has made to eradicate the drug United States, that he became an internationallyknown polit­ trade, and the lack of international support not only from the ical prisoner. government of the United States but from the international community in general . Here, some specialists constantly say Announcer: "In accord with today's civilized standards for that Colombia makes the sacrifices while the United States legal frameups of political critics of those in power, my and other countries do absolutely nothing to eradicate the friends and I were charged and convicted on nothing but the drug trade . What has the United States government done, customary allegations of 'conspiracy.' The case was tried from your viewpoint, to combat the drug trade , this drug before ajudge who has been compared with the Nazi Roland plague, as Colombia has done until now? Freisler, before a corrupt jury stacked with members of pros­ LaRouche: First of all, remember that drugs have no real ecutorial agencies. value. When you produce drugs, you may collect money, "The rushed trial was a near-copy of France's notorious but you produce nothing of value. To produce drugs, for Dreyfus case of 1894. The Alexandria sentence of Jan. 27, example coca, means not to produce vegetables, not to pro­ was immediately the outcome of a 'get LaRouche' project duce food. So the people starve while the narco-traffickers set into motion by former U.S. Secretary of State Henry A. collect money. Guns come in for the narco-traffickers to kill Kissinger, beginning August 1<)82. Kissinger collaborated the people that have no vegetables. So, for the drug trade, in this project with several members of a powerful, corrupted there is no legitimacy. The drug trade is as evil economically President's Foreign Intelligence Advisory Board (PFIAB), as it is evil morally. And a country that tolerates it, as the and PFIAB ' s Vice Chairman Leo Cherne. United States has done-and we know that sections of the "1982-83 was not the first period Kissinger and Leo U.S. Defense Department adapt themselves to the drug traf­ Cherne's cronies had conspired to terminate my existence. fickers, the Colombian traffickers-in that sense is responsi­ The released U.S. government records of such uses of the ble for the situation in Colombia, by helping the traffickers. FBI, and other agencies of U.S.A. and foreign governments, Drug traffickers take some $600-800 billion a year out of trace practices back to the first year of Kissinger's stint at the the mouths of children around the world. Money that could White House. Nor was it the first time they had coordinated not go to industry, money that could not go into farming, such activities with the Soviet KGB . Nonetheless, from 1982 money that could not go into housing and development, goes on, there was a difference. to the profits of the narco-traffickers . That has looted the "The chief difference was that I had become much more

32 Feature EIR October 16, 1992 significantby 1982-83. As the New York Council on Foreign 135 were radio interviews; 40 newspaper, magazine, and Relations' William Bundy said to a French journalist, in wire service interviews; 2 TV interviews; and 56 interviews 1981, as paraphrased in that journalist's report: 'LaRouche with foreign media outlets, many of them Ibero-American. is dangerous, he has infiltrated the corridors of power, he "In December 1988, while the trial against LaRouche and has spies everywhere, and one should not underestimate his his six co-defendants was being held, the famous violinist influence!' referring to my activities around the nation's capi­ Norbert Brainin gave a benefitconcert for his defense. tal. Or, as President Reagan's National Security Council "In February 1989, the International Martin Luther King Economic Adviser, Dr. Norman Bailey, stated in an NBC­ Tribunal was founded in Rome to hold hearings on the ad­ TV interview on March 4, 1984, LaRouche had 'one of the vance of totalitarian fascism in the free world, of which best private intelligence services in the world.' the case of LaRouche and his co-defendants is a very clear "There were two very special issues which frightened example. The Tribunal later held major internationalconfer­ Kissinger and Cherne, and which provoked Moscow to jump ences in Paris, Washington and, again, in Rome, as well as into Kissinger's bed on all four feet. The first was my book­ national conferences in many nations of the world, among length analysis and proposal for dealing with the 1982-83 them Thailand and Peru, along with regional conferences in debt crises, Operation Juarez. The second was my intensive dozens of U.S. cities. 1982, international campaign to sell President Ronald "Italian Senator Vincenzo Carollo of Italy and General Reagan what he later named the U.S. Strategic Defense Ini­ Paul Albert Scherer, former head of military intelligence of tiative (SDI). Kissinger, Cherne, and Moscow were my West Germany , traveled to Washington to criticize deadly enemies on the issues and implications of Op eration LaRouche's treatment and to warn of Soviet motives in the Juarez, and, wherever Cherne stood, Kissinger and Moscow affair. Two heroes of the French resistance, Marie-Made­ hated me because of the SDI. leine Fourcade and Jean-Gabriel Revault d' Allonnes issued "It may, and should be reported here , that during a period statements in defense of LaRouche's impeccable honor, from January 1982 until April 1983, I was conducting private whose cause they linked to their own sacrifices in the fight 'back-channel' discussions with an official of the Soviet gov­ against the Nazis. Amelia Boynton Robinson, leader of the ernment, on behalf of the U.S. government. The principal civil rights fight in the U.S. and collaborator of Dr. Martin topic of these discussions had been my proposal for strategic Luther King, compared the conspiracy against LaRouche ballistic missile defense based upon 'new physical princi­ with that behind the King assassination. ples,' an attempt to 'feel out' possible Soviet reactions to "In February , Brigadier Geneml (ret) . Friedrich von der such a change in superpower relationships. Heydte, professor of constitutional and international law at "Unfortunately, these discussions bridged the spring­ the Universities of Mainz and Wiirzburg, issued his analysis summer 1982 period, when Moscow brought the 'Brezhnev that there exist important parallels between the recent trial of period' of Soviet history to a close by nominating Soviet LaRouche and that of the infamous Dreyfus case, from the KGB chief Yuri Andropov as Leonid Brezhnev's designated last decade of the nineteenth century in France. early successor. Whereas Brezhnev might have welcomed "In late April, more than 100 Ibero-American legislators President Reagan's March 23, 1983 offer, it turned out that signed a manifesto, which was published in several major Andropov saw that offer as a threat to the strategic master­ U.S. newspapers, including the New York Times and the plan he had developed in collaboration with Marshal Nikolai Washington Post, in which they demanded that the injustice Ogarkov. against LaRouche and his companions be corrected." "So, my Soviet interlocutor informed me in early 1983- as I, in turn, so informed the National Security Council­ Q: We hope that these excerpts from the autobiography that his government would regret my proposal for strategic of a political prisoner, The Power of Reason, give a little ballistic-missile defense. He transmitted the fo llowing find­ better insight into this individual! who is our invited guest ings of his government, which, in hindsight, are key for today, independent U. S. presidential candidate Lyndon understanding why Moscow classes me as Soviet enemy LaRouche .... number one in the world today . " Let us now speak of the Peru case. In recent days, there has been the important news of the capture of Abimael Guz­ Q: And here are some footnotes to this same prologue of man, leader of the terrorist group who was captured by the The Power of Reason, regarding what has been a difficult Fujimori government. How do you view this situation of moment for our guest today on Todelar Reports , Mr. Lyndon violence in Peru, the capture of Abimael Guzman, and the LaRouche who, we repeat, is today a candidate to the presi­ current situation facing President Fujimori? dency of the United States. LaRouche: I think that Fujimori has demonstrated what the Announcer: "From his prison in Alexandria, Virginia where solution is. This is like a very bali disease. When you post­ he was incarcerated from Jan. 27 , 1989, until moved on July pone medical treatment for a very bad disease, the longer 14, Lyndon LaRouche conducted 233 interviews. Of these, you postpone the treatment, the worse the disease becomes,

EIR October 16, 1992 Feature 33 and the more radical the treatment you need. What you see is much concernbecause he carried out certain actions which in Peru, for example, you see a group of bandits, called are not democratic, what is being called a self-coup. Do Shining Path , whose pedigree goes back nearly a century. I you support Fujimori despite the fact that he shut down the know very well: These bandits are out to destroy Peru , and Congress, and do you believe that he is good for Peru, Co­ its people. They don't have a justification to exist as an lombia's neighbor? organization . They are a criminal organization worse than LaRouche: First of all, remeI1llber that I have respect for the the Nazis, worse than Pol Pot in Kampuchea. They are com­ sovereignty of nation-states and I am very sensitive to the mitted to destroying Peru. By waiting to destroy Shining sovereignty of the states of Central and South America, espe­ Path, Peru has put itself in a precarious situation. But I have cially because I know the recent experience. Therefore , I am observed from reports, that the taking of the prisoner, the very careful about criticizing, especially publicly, certain criminal Abimael Guzman, who we all know to be a criminal, qualities of certain governments, because I think the sover­ and has been for many decades, was seen with great enthusi­ eignty of the people under the nations is a prime consider­ asm and hope by the people of Peru . Hope among the poor ation . peasants, even though they grow the coca, hope that they can Now, for what Fujimori's governmenthas done together be free from slavery to the narco-terrorists of Shining Path. with the military against the terrorists, Ijoin with the Peruvi­ Yes, the problem is a dangerous one. But, the very existence an people in rejoicing at this action. Obviously I am critical of society in these countries, like Peru and Colombia, de­ of what the Fujimori' s governmenthas not done. I also under­ pends on defeating the narco-Hitlers. stand that a nation of 20 million people, a very poor nation, a nation under great pressure, is unable to act alone in the Q: What will happen if Bush is elected President of the present circumstances. What I look at is not so much the United States? Or what would happen if Bill Clinton, the criticism of Fujimori that could be made; I look at a process Democratic candidate, is elected? And, of course, Mr. which could be spreading throughout the sovereign politics LaRouche, what would happen if you defeated the candidates of the hemisphere. I see Brazil, I see a transformation of of the traditional U.S. parties? Brazil, which I believe is in the process of sweeping through­ LaRouche: First of all, I think we can now accept and recog­ out the hemisphere. I believe that this transformation of Bra­ nize that Bush is a very sick man. It is possible that he could zil will unleash changes that have been waiting to happen be reelected, but that's becoming increasingly doubtful, al­ over the last 10 years. I think tbat a great movement of hope though it is not certain that Clinton would be elected. So, we from within the people of these countries is possible. I think have no final answer to those questions yet. What we do that such a movement of hope among sovereign people would know is that both, George Bush, whatever his administration lead to the best kind of transfor:mation in quality of govern­ would be, and Clinton, whatever his administration would ment in that region. People who are inspired and inspire their be , would be fascism, in the sense of Mussolini in Italy in the own government, will bring upon themselves the necessary 1920s and the early 1930s. Mussolini fascism is the official improvement in government. Where the governments must program of the Democratic leadership behind Clinton and is live under great depression, ecqnomic depression, and must essentially the official program of the kind of Republican live under terror, you cannot have a good government. forces behind George Bush. It was once the program of Ross Perot, who as a candidate was exactly what he was before . Q: Mr. LaRouche, you speak lliittle of self-determination, Ross Perot's program is also fascism. this phrase which has been so defended in states like our So, if any of these come to power, one can expect that own. How is it that, in the name of self-determination, which the United States would be worse under the next President has been defended by Latin Americans, and especially by the than the previous President. If I were elected, or if my elec­ democratic governments such as that of Colombia, there can tion campaign did have significant success-not total suc­ continue to be poverty, there can continue to be a situation cess, but significant success-that could change the situa­ of economic and social stagnation such as that which all the tion . Because very few people in the United States want to nations of Latin America have been suffering? vote for either Clinton or Bush. Clinton's support comes LaRouche: I don't use the tenn self-determination. That from the fact that people hate Bush, and support him not was a term introduced by certain sociologists whom I don't because they like him, but because they hate Bush more. If trust. I don't trust the word, because I don't trust them. I American people express this disdain for both candidates by speak of sovereignty of the people, that is the participation voting for the LaRouche candidacy in a protest vote, that of the people in the process of government through represen­ may help to bring about a new situation, a favorable situation tatives who actually represent the people. It is very difficult in the United States. That is what I'm trying to do. to maintain the government if you have both grave poverty and the living conditions that you have in many countries Q: Mr. LaRouche, let us return to Latin America. You have today, and if you also have no hope. If people are very just defended Peruvian President Alberto Fujimori. But there poor, but they know they are participating in the government

34 Feature EIR October 16, 1992 through their representatives, if they feel they are building gives all his sweat for a good coffee I(ke the Colombian, can that nation, they would make sacrifices willingly if they see continue to earnmoney and so that thi$ money doesn't remain I that those sacrifices are necessary to realize a good result. in the hands of the intermediaries? However, if they have no hope and no reason to hope and LaRouche: I know a little bit about the situation of agricul­ they live under terrible and ugly conditions, then you have ture in the Imperial Valley, and I know the production poten­ the conditions for dictatorship. tial there . I also know the situatio� of agriculture in the United States. And I believe in prot4ctionism. I believe we Q: Let us talk about coffee, Mr. LaRouche, an issue that is should not protect the international traders, but we must pro­ of great importance to Colombians, because coffee is the tect the individual farmer. I think every specialist knows, in backbone of our country's economy. The United States did this area, what the definition of the productive farmer is. For not collaborate in the renewal of the World Coffee Pact, and example, the definition of a productive farmer for a coffee this has caused, in Colombia and in the coffee-producing grower in the high-altitude region of Colombia is different countries in general, serious economic trauma. Why, in your from the definitionof a productive farmerin the grain district view, did the United States not collaborate in this pact? Or of the United States. But every cOlJntry knows what that is it that perhaps the United States seeks to definitely shatter definitionis in its own area. We need agreement on protective the Colombian economy and the economies of the developing prices that go directly to the produQers and make sure that countries? these producers are able to continue!to improve the produc­ LaRouche: I would say the United States is trying to destroy tion, in quality and quantity. And we will all benefit from the Colombian economy, and knows it is trying to destroy such an agreement. the Colombian economy. What has been done to the price of coffee? Any coffee grower, any economic official of the Q: Mr. LaRouche ...do you have anyspec ial message for Colombian government, or any private economist or other our Colombian people at this point, with less than two months specialist knows exactly what the effect is of this fall of the to go to the United States elections? . coffee price: that the farmer cannot afford to grow coffee . LaRouche: Well, my best wishes. I have suffered in my This means that the farmer may be able to afford to grow spirit a great deal, because I know the conditions of the heroin for the Cali cartel, but not coffee . This means that Colombian people, because many G:olombians are my per­ coca will spread where coffee was, and that is the intention sonal friends, and friends of my friends. I have suffered much of the people in Washington. because I know what is happening, land I wish a change for There is another aspect that is not just that specific. Yes, the better very soon. And I will do anything possible within we should have, as we had before, protection arrangements my limited powers. on agricultural products of various nations, including coffee. These protection agreements should be made orderly, so that Q: Mr. LaRouche, what is going tof happen with Colombia? various nations understand the other nations' protection re­ How do you see the future of ColQIDbia, and how can you quirements. And there should be protection, as there was help us, should you become the next President of the United before , for the price of coffee . That was just, and it was States? unjust to remove that understanding. LaRouche: Everything that I can. For example, as you know, perhaps, I have tried to deal with the problem of narco­ Q: But yesterday, the National Coffee Growers Federation terrorism. I have tried to deal with t� problem of the external in Colombia issued a communique for the meeting that will enemies of the internal order of C

EIR October 16, 1992 Feature 35 that, through an improper and;illegitimate use ofthe financial Documentation system, are carrying out the bloodyslaughter of the countries of the Third World, have condemned Somalia to biological annihilation, are blowing on the coals of the war in former Yugoslavia to plunge all of Europe into a situation of un go v­ More Europeans voice ernability and economic paralysis. Faced with the LaRouche case, any true democrat cannot support of LaRouche but be appalled and shocked; but as the battle of both your and our movements shows, theeuni versal ideas and principles that we are defending do not stop at the prison walls. We can Sen. Carmine Mancuso be certain that the extreme attempt of the butchers of justice Italian Sen. Carmine Mancuso is the head of the Senate to eliminate them will fail miserably. As a famous Latin group of "Movimento La Rete." The senator'sfather, a po­ American poet used to say: "Theycan cut all the flowers, but lice offi cer, was killed in the I970s in a Mafia-organized they cannot stop the returnof spring." bomb attack on the car of a courageous Palermo magistrate, Judge Terranova, fo r whom he was the bodyguard. Senator Pastor Michael Beer Mancuso has dedicated his life to the fightagainst the Mafia The fo llowing message, fro m the fo rmer Director of the and its international sponsors. Fatima Apostolate in Germany, was issued at Pfaffe nhofe n La Rete ("Network") is a new party set up recently in on Oct. 2, and was distributed at the annual, week-long Sicily and other Italian areas, in order to fight the Mafia . Fatima pilgrimage in Louisiana which began Oct. 7: In the last national elections in April, they sent some 20 representatives to the national Parliament. The leader of La All of you present at this holy place on the great pilgrimage, Rete, Leoluca Orlando, is the fo rmer mayor of Palermo. He are hearing again the message of the heavenly Mother of has received more votes than any other politician in the Fatima. In her appearance in 1917, she emphasized that all history of Sicily. Although he lives under constant death men should return to God and to His Ten Commandments. threat, Orlando relaunched a fe w weeks ago a campaign These remain in effect, all the way to Judgment Day. Back against the connections between the Mafia and Freemason­ to the true Creator and Lord ! The primary goal of today's ry-acam paign on "the same wavelength" as that of Lyndon warfare against culture, is to drivethe holy, one, all-powerful LaRouche, according to people close to the political leader. God out of our world. In doing so, of course, it also rejects On Oct. 6 Senator Mancuso sent the message belowfr om every aspect of the sanctity of life. For, when we no longer Rome to the Rev. James Bevel, LaRouche's vice presidential believe in a Creator to whom we are accountable, we thereby running-mate, on the occasion of a march on Washington: make ourselves into lords oveI1 life and death. It is now only a few more weeks to the U.S. presidential I would like to express my full solidarity with the participants elections. The best presidentia1 candidate, however, is sitting in this historic march against the death penalty and the corrup­ in prison, an utterly guiltless political prisoner, Mr. Lyndon tion of the justice system of the United States, a country H. LaRouche, as the result of an evil judicial scandal. Half where justice is subordinate to political power and becomes a year ago, LaRouche wrote on the subject of the science of thus an instrument of barbaric repression. Christian economy, on the scientific foundations of a new, The battle of the LaRouche-Bevel movement for the de­ just world economic order. lie begins his book with the fense of civil rights and the right to economic development epoch-making encyclical of Pope Leo XIII, written in 1891, represents the most important bastion of democracy. All whose tenor is: "Away with greed and profiteering, so that those who participate in this battle draw inspiration from the rich do not become richer and the poor poorer. " LaRouche the principles and teachings of Martin Luther King and are writes about the human being, the living image of God, and determined to defend the only heritage worth passing on to of his sovereign individuality which must remain inviolable, posterity. from the womb to the last dyipg breath. The death penalty I want to express my solidarity with Mr. Lyndon must disappear. LaRouche further wrote about a world in LaRouche, who has been the innocent target of a bitter perse­ which justice comes before power, and in which the "New cution by a perverse web of political, Mafia, and masonic Age" will be overthrown, because it is Godless. interests that are promoting an ignoble, feudal , one-worldist, The Pope's call remains more urgent than ever: "As hu­ and neo-colonial design. man beings and as believers, we must never cease promoting The only "crime" that LaRouche committed is to have the culture of life against the culture of death." We must challenged the powerful, usurious interests represented by proclaim the inviolability of the! right to life (life with dignity) the International Monetary Fund: neo-corporativist interests against abortion, an abnormal qrime. We must also proclaim

36 Feature EIR October 16, 1992 this right against war. When man lives without God, he the right to private ownership of IJd. We consider this to forgets the purpose of his human existence. He pursues fleet­ be the most important question in Russia-so to speak the ing idols, wants to exert power over other human beings and Achilles' heel of Russian history. Should this law pass the to acquire riches. He who knows not God, cannot view his Russian perspective will truly become closer to the European fellow human beings as God's creatures. The Pope speaks model, and so will perish the socialist base of "the unique about how we live in an era of "clouding of the conscience." Russian way," and with it, such an upinviting idea for Ukrai­ Fatima shows the way: The world can only be saved by free nians-"Russian messianism." And: so, we shall overcome. human beings. Today it seems that there is hardly anyone The reason we are turning to the American diaspora is who isn't dominated by the Zeitgeist, by today's popular connected to the presidential elections. We are carefully fol­ values. lowing the presidential campaign to! the extent the news ser­ The fight against Catholic moral teachings already began vices here allow. We deeply respedt your elections and re­ decades ago. But now that believers are becoming an ever­ membering that your democratic principles are orienting the dwindling minority, the pressure has become all the greater countries of eastern Europe, allow u� to express our thoughts and the social discrimination all the more unabashed. Jesus on the selection of a candidate, �ur point of view from says, "If they have persecuted me , so too will they persecute Moscow. you." We are called upon to oppose this war against culture, It seems to us that George Bush, as also his opponent, starting with our own lives. From Fatima the call went out: Bill Clinton, do not reflectin their I*"ogram, the new tenden­ "Do not continue to offend God, Who is already offended so cies and new approaches of world politics. The new era that much!" Mary calls us to pray for world peace. And it is high began with the fall of the Berlin Wall will be the era of a time. The terrible war in former Yugoslavia and the misery Europe united on a new basis, but eastern Europe will still around the globe, show that the world is already very far go through the process of sovereigQty, and, after that, it will gone. The world urgently needs prayerful and active Chris­ rejoin this definitepro cess. tians; otherwise still more could be lost. The views of President Bush, who called Ukrainian na­ What is now required of us, are virtues such as fidelity tionalism "suicidal," and also the main position of both can­ in faith, courage in truth, and love of our neighbor, put didates are for a strong America Which unfortunately resem­ into practice. The re-evangelization of Europe and the entire bles a global policeman-such an �pproach does not please world requested by the Pope can only be spread through our us very much. Traditional geopoliQ.cal thinking, militarism, prayer and our own Christian lives. "For faith without works show of force-is this the quinte�sential new epoch? This is dead," as the Apostle James writes. The hour of testing is too is Russian messianism, but wit� a different accent. come. The future is in our hands. Much closer to our own thinking is the program of inde� pendent candidate Lyndon LaRouc�e. Demilitarization, sup­ Ukrainian National RukhlMoscow porting the physical economy thropgh credits, development An address to our countrymen in America: of infrastructure, support for farmejrs. In the social sphere­ The Organization of the UkrainianNational Rukh (OUN the change from an imperial ideol�gy to precious European Rukh, or the Moscow branch of Rukh) salutes our coun­ culture, an attempt to sharpen .f\,.merican individualism, trymen in America, and wishes you good fortune and well­ which is a mirage of spirituality, cqncentration, and creativi- being. Even though we may live in various parts ofthe globe, ty, has began. i there is, for us, only one fatherland-Ukraine. All our efforts And his propositions for worlq development are no less are for her, and to her we give our filial love. interesting! Above all, is the idea of the "Paris-Berlin-Vienna More than one year has already passed since that unfor­ Productive Triangle," which alre�dy is popular in Europe. gettable day when Ukraine began building a sovereign na­ We can add that Lyndon LaRouche's proposal for currency tion. Things are not easy, but a bitter cup has been dealt to reforms in Russia and for leading tbe Russian economy out of Ukrainians over past epochs, and we will have hope for a the crisis has met with interest among Moscow's economists. better fate . In that year, we Ukrainians in Moscow felt our­ Therefore , Ukrainian-Americans, tum your attention to this selves to be in the diaspora in the full sense of that word, interesting and all-encompassing program. In a word: Its aim and perhaps, that is why we became more interested in the is a new rebirth of America, EuroJlle, and the whole world. diaspora of other countries. In that year, in Moscow, were To conclude our address, we !Want, once more, to wish organized Ukrainian community organizations. Amongst all Ukrainian-Americans good luqk, happy households, and them: the Association of UkrainianChoirs , Slavytich, youth blue skies over your heads. We �elieve that our traditional club, an association of Ukrainian officers, and others. The work ethic, and our fear of God Will be an eternal source of organization that is most oriented in the direction of the politi­ good will and prosperity. cal sphere is OUN Rukh. Right now our organization is Glory to Ukraine! involved in the gathering of signatures for the referendum on Oct. 2, 1992

EIR October 16, 1992 Feature 37 �TIillInternational

Brazil's new President stands up to Wall Street

by Silvia Palacios and Lorenzo Carrasco

Upon assuming office in March 1990, President Fernando tion rate ! Through this "successful"policy , Marques Moreira Collor de Mello claimed that his government would shoot caused the virtual bankruptcy of the national treasury by the "tiger"-the endemic inflationthat ravages Brazil-with provoking a collapse in tax revenues of more than 20%. a single bullet. Two and a half years later, the tiger has This is the real legacy that the IMF's policies are leaving ended up devouring the carrion of a government infestedby to the new government. unrestrained corruption. As an added irony, the debacle of Collor de Mello's governmentcan serve as the coup de grace Two immediate tasks for the Enterprise of the Americas initiative, upon which the Already heir to such economicdevastat ion, the new gov­ success of the "new world order" depends in the Western ernment of President Hamar Franco is facing two essential Hemisphere. tasks to guarantee the future existence of the country. On For the past four months, ever since President Collor's the one hand, it is clear that priority must be given to the brother Pedro exposed the scandalous conspiracy of govern­ reconstruction of the national economy. At the same time, ment corruption, the Anglo-American financial elite has at­ the intelligence and security fun¢tions of the Brazilian state, tempted to somehow keep the President's neo-liberal eco­ damaged by policies of unconditionalalignment with the new nomic policies separate from his political future , which is world order, must be rapidly restored. now in the gutter. This explains why, at the same time that President Franco's readinesslto reestablish the country's the media historically linked to Anglo-American interests, national intelligence capability, which was gravely affected such as the Civita family's magazine Veja . were enthusiasti­ by the dissolution of the National Information Service (SNI), cally exploiting the corruption scandal for all it was worth, is thus very important. This commitment is clearly indicated the international financialinstitutions were accelerating their by his naming of Gen. FernandoCard oso, who has until now debt renegotiation agreements with Brazil, in order to create occupied the post of head of ArIby intelligence (CIEX) and an irreversible situation for the next government. who comes out of SNI ranks, to head the presidential military In the middle of the Collor government's collapse, Inter­ cabinet. national Monetary Fund (lMF) Managing Director Michel Franco's sympathy for the Armed Forces' program of Camdessus, for example, expressed confidence in Brazil developing the most advanced technologies possible is also with the argument that his institution does not make deals manifest. The "point technology" policy had come under with governments, but with states. Thus, by concentrating on brutal attack during the Collor government, fromsuch "tech­ the corruptionscanda ls, internationalbankers were hoping to nological apartheid" warriors las former minister Jose exonerate the destructive economic policies of Economics Goldemberg, who never disguised his desire to dismantle Minister Marcilio Marques Moreira, while conveniently ig­ the Brazilian Armed Forces. It is significant that two of the noring the fact that the minister-banker's great "success" was military ministers already nominated by Franco come direct­ in "stabilizing" inflation throughout the year at over 20% a ly from the core group responsible for the Armed Forces' month, with real monthly interest rates at 5% above the infla- programs of autonomous development.

38 International EIR October 16, 1992 Newly appointed Navy Minister Adm. Ivan da Silveira PSDB was being sarcastically described in certain political Serpa is considered the kind of officer ready to fightfor the circles as the Party of the State Department in Brazil (PSDB). resources required to develop a modem Navy, and for the A member of the Inter-American Dialogue, Fernando continuation of the nuclear submarine program. The new Air Henrique Cardoso's concern is thati without an economic Force minister, Gen. Lelio Viana Lobo, was head of the policy totally aligned with George Bush's Enterprise for the delegation which participated in a joint program with Italy Americas initiative, the one-worldist policy of Brazil's For­ for fabricating the AMX fighterjet. eign Ministry could not long survive. Perhaps more significant still is the naming of the new In the end, Franco's nomination I of Krause to the Eco­ Army minister, Gen. Zenildo Lucena. According to the daily nomics Ministry provoked widespread hysteria among o Globo, he comes out of the "ultra-nationalist" sector of the Anglo-American financial circles and their domestic co­ Army and has close ties to the circles around former President thinkers . According to Reuters, many Brazilian bankers and Gen. ErnestoGeis el, whose governmentfavored the industri­ businessmen were "astonished" and "dismayed" by the news, al development of the country based on major infrastructure, and the Sao Paulo stock exchange {ell 8% that same day . industrial , and agricultural projects. Nonetheless, in the face of criticism ;by several bankers that Krause didn't even speak English, considered by them an Economic policy to be defined imperative in dealing with Brazil's creditors, Franco re­ If the situation appears well-definedin the military area, sponded: "That's why there are interpreters.... It is time unfortunately the same cannot be said for the economic and to ask ourselves if they [the bankers] shouldn't be speaking foreign policy areas. It is known that President Franco rejects Portuguese." the savage privatization program, especially the efforts to Franco also said, "The stock exchange is not going to privatize the oil company Petrobras and other strategic sec­ give me orders as to whom I can choose for the Economics tors, initiated by the Collor government, and that he has Ministry." serious reservations about the free market "opening" of the Franco's resurrection of the PI�nning Ministry , elimi­ economy which is destroying national industry and, especial­ nated by Collor, indicates the new President's intention to ly, the capital goods sector. Nonetheless, the pressures are strip away the super-powers that CQllor had given his eco­ immense and will grow , to force Franco to allow the IMF and nomics minister. The naming of Palillo Haddad, a confidant its banker partners-both domestic and foreign-to maintain of Franco, as planning minister, suggests that the President their "guardianship" of the national economy. intends to maintain personal control over economic policy, So far , Franco has resisted the first round of pressures which could create the conditions for a change in direction through the apparent influenceof former Vice President Au­ in that area. reliano Chavez, a nationalist who opposes liberal economic programs and has openly opposed IMF policies, and by nam­ Pragmatic alliances ing to the Economics Ministry Congressman Gustavo Franco's greatest weakness de�ves from the fact that Krause, an individual essentially unknown to the internation­ he is obliged to rely on the support of the various parties al bankers and to the powerful Sao Paulo business grouping. represented in Congress, which iq turn is forcing him to Until the last moment, the Anglo-American establish­ recreate the kind of pragmatic political arrangements that ment had Congressman Jose Serra, of the Brazilian Social President Tancredo Neves was forctrdto make to forge some Democratic Party (PSDB), as its candidate for the economic kind of political base for himself in, 1985. That base of sup­ post in Franco's government. Serra's candidacy was rather port was so broad-and so thiq---that, after Tancredo unabashedly launched by former U.S. Ambassador to Brazil Neves's sudden death and the inhe�tance of the presidency Lincoln Gordon, and backed by Luiz Ignacio Lula da Silva, by Jose Sarney, it proved the greatest obstacle to firm or president of the pro-communist Workers Party (PT). Gor­ significant governmentacti on. don's endorsement of Serra was expressed in an interview This is particularly relevant to$y, given that the urgent published Sept. 1 in the daily Jornaldo Brasil: "I had a long measures required to defend the Br�zilian economy from the talk with the congressman [Serra] during my last visit to world financialhurricane will be difficultto get approved by Brazil in 1990, and I was very impressed with him. The such a heterogeneous base of political support. Thus, there congressman has a good reputation and is recognized as an is the danger that the enthusiasm that surged forth in the objective, intelligent, and capable professional." immense demonstrations against �e corrupt Collor could The Anglo-American establishment's commitment to dissipate in the face of a governmentpolitically immobilized Serra's nomination to the cabinet was also signaled by the and impotent to confront the economic depression. obsessive insistence of Sen. Fernando Henrique Cardoso, a The Franco governmenthad best learn, and quickly, the fellow PSDB member, who even offered up his nomination bitter lesson of the recently liberated nations of eastern Eu­ to the Foreign Ministry in exchange for Serra's nomination to rope, which freed themselves from communist dictatorships the Economics Ministry. So blatant was the scenario that the only to fall into the grip of economic liberalism and usury.

EIR October 16, 1992 International 39 Is theADL concealing ColloJi's 'international connection'?

by Silvia Palacios and Lorenzo Carrasco

The publication of an ElR Special Report revealing a possible the ADL itself, whose leading representative in Brazil, Rabbi coverup of the internationalnetworks behind the "P.C." Fari­ Henry Sobel, is an Americani based in Sao Paulo. as affair-the centerpiece of the corruption scandal which The article presents as proof of ElR's supposed anti­ has just overturnedthe Fernando Collorde Mello presidency Semitism two articles by cotrespondent Lorenzo Carrasco, in Brazil-and which circulated widely in the Brazilian Con­ reproduced in facsimile in the newspaper. The articles 1) gress on the day of the impeachment vote, has provoked the expose the connections ofCongressman Feldmann to interna­ fury of agents of the Anti-Defamation League (ADL) of tional financial interests which sponsor environmentalist B'nai B'rith in Brazil. causes, and 2) the relations of Jose Goldemberg, former The ElR report was the focus of lengthy coverage in the minister of science and technology and eminence grise of Sept. 29 edition of the daily Momento Politico, the widely the Collor government, with the "technological apartheid" circulated newspaper of the country's political elites. Under warriors of the new world order and their plans to dismantle the headline "Kroll, Which Worked for the CPI, Covered Up the Armed Forces. Collor Connections" (the CPI is the congressional Commis­ While the ElR report only raises the suspicion of a cov­ sion of Inquiry which investigated the Collor scandals), the erup of the international connections of the "P. C."-Collor newspaper illustrates its report with a photograph of Presi­ alliance, it mentions nothing of Fabio Feldmann nor of Jose dent Collor alongside photographs of Edgar Bronfman, Rob­ Goldemberg. The F olha de Sdo Paulo coverage thus uninten­ ert Vesco, and Kenneth Bialkin-all closely tied to the ADL. tionally places a rather unwelcome spotlight on the two, Momento Politico observes that the Collor presidency not especially because their ideas were so very much in fashion only sprang from provincial connections to the mafia in Col­ during Collor's regime. lor's native state of Alagoas, but that also to be investigated Folha de Sao Paulo's attacks on LaRouche and ElR can are the international influences that could explain why deci­ be added to the monotonous repetition of slanders originating sions of the Collor governmentwere so dramatically at odds from the ADL and written byiscribbler AlgemiroFerreira in with Brazilian national interests. the pages of the mercenary rag Tribuna de lmprensa. The The ElR report speaks of "the near certain coverup opera­ originality of "former" communist Algemiro Ferreirais such tion by the U.S. investigating agency Kroll Associates, that his columns against Lyndon LaRouche areexact replicas which was so precipitously hired by the Brazilian Congress to of those which appeared on July 18, 1989, and were repro­ investigate precisely these ramifications." The report reveals duced repeatedly-on March 21, 22, 23, Aug. 15, 18, 27, Kroll's links with the ADL and CIA, and questions why it and Sept. 25 of this year-Without changing so much as a did not investigate "the only private individual with whom comma. I Fernando Collor de Mello met during his January 1991 visit Perhaps it is no accident that Algemiro Ferreira maintains to New York, Edgar Bronfman, president of the World Jew­ close ties with the family of businessman Israel Klabin, who ish Council and leading financierof the ADL, to which Kroll is himself linked to the international networks of the ADL. Associates is linked." The Klabin family, at least sinCe the 1950s, has been closely The ADL's response to ElR's report came via the Oct. 2 associated with the Zionist networks around Chaim Weiz­ edition of the newspaper Folha de Sao Paulo, with an absurd mann and William "Intrepid" Stephenson, then head of the attempt to link ElR and its founder Lyndon LaRouche to Special Operations Executive !of British intelligence which, gangs of street criminals which have recently appeared in in close collaboration with tHe U.S. FBI's Division Five, Sao Paulo, Rio Grande do SuI, and other states, in imitation controlled the deployments olf the communist, Trotskyist, of the neo-Nazis and skinheads of Germany. According to and Maoist organizations in the United States into Ibero­ the article's author Daniel Castro, who spoke with ElR's America. correspondents in Brazil, the intellectual authors ofthe Folha It is to these networks that journalist Algemiro Ferreira de Sao Paulo article were Congressman Fabio Feldmann and belongs. It should come as nb surprise that while Ferreira

40 International EIR October 16, 1992 does not hide the fact that he has been a member of the Brazilian Communist Party's central committee, he also fully defends the interests of Israel Klabin, while spreading ADL slanders against LaRouche and his collaborators. Argentines found new nationalist movement

Documentation by Cynthia R. Rush

The Anglo-American bankers aren't too happy these days. Adding to all of their other problems, on Oct. 3 over 2,000 patriots from military and civilian groupings gathered in Bue­ 'Stop spreading slanders nos Aires, Argentina to found a nationalist movement com­ againstLaRo uche' mitted to doing away with the Intern�ionalMonetary Fund's usurious policies and defending the "inviolable universal rights" of the individual. The fo llowing is a letter of response to Folha de Sao Paulo The Movement for National Identity and Ibero-American by EIR' s correspondents in Brazil. Integration (MINeIl) is inspired by: nationalist Army Col. Mohamed Ali Seineldin, a hero of the 1982 Malvinas War, In its Oct. 2, 1992 edition, your prestigious journal gives and Capt. Gustavo Breide Obeid, both currently jailed be­ space to a vulgar attempt to draw a connection between Bra­ cause of their opposition to the polic.es of the Carlos Menem zilian neo-Nazi groups and the U.S. magazine Executive government. The two men addressed the gathering through Intelligence Review, of which we are the representatives in messages taped at the Magdalena Prison. The meeting ac­ this country. claimed Seineldin as its "sole commander" and Breide as its In the name of the truth and of journalisticethic s, values secretary general. which Folha de Sao Paulo is said to defend, we request the Such a movement, whose goals are similar to those of the publication of this letter for the purpose of clarifying the fact lbero-American SolidarityMovement i(MSI) founded in May of that EIR magazine, founded by Mr. Lyndon LaRouche, does thisyear in Tlaxcala,Mexico, is urgently needed. Argentina is not have and has never had connections with any neo-Nazi in an unprecedented economic and moral crisis, as a result of or like group, either in Brazil or in any other country. years of IMFausterity and free trade policies. As seen in recent Regarding the label "neo-Nazi" as applied to Mr. developments in Brazil, lbero-Ameriaa is in a volatile situation. LaRouche, please note that it is but one of various slanders People around the continentare re jectitlgpoliticians and govern­ that are frequently spread by his detractors. As an example ments identified with the old corrupt �tructures and monetarist of these, we remind you of another slander, similarly given policies,and areseeking moral leadership which can defend their voice in the March 18, 1986 issue of Folha de Sao Paulo, interests and those of their nations. linking members of Mr. LaRouche's organization in Europe The MINeIl proposes to do just �hat. In his speech to the to the assassination of Swedish Prime Minister Olof Palme. conference, Captain Breide explained that the MINeIl "is not Recently, former members of the Stasi, the intelligence a political party, but a national movement, inspired by the agency of the now defunct East Germany, revealed to the Social Doctrine of the Church andl the sense of life of the Swedish press that the accusations against LaRouche's group Argentine people from within the country's deepest tradi­ were part of a successful counterintelligence operation car­ tions." The purpose of the MINeIl is to carry out "national ried out in coordination with western agencies such as the revolution . . . not to be associated with the use of force or Anti-Defamation League ofB'nai B'rith (ADL). Despite the violence ...but to produce necessary structural change, fact that this information was sent to the internationaleditori­ to find solutions to the grave moral, social, political, and al officeof your newspaper last Sept. 4, requesting the appro­ economic crisis of our republic." priate rectificationof your previous report, it has lamentably The movement's founding principles state that "the econ­ not been published as of this date. omy will be subordinate to the well-being of the individual Regarding the ADL and its leading sponsor Edgar Bronf­ and of the communityand not the inverse ....We therefore man, we offer to make available to Folha de Sao Paulo, in condemn usury and the manipulatirms of high international the event of your interest, information from the public do­ finance which enslaves people, becliuse we seek a society of main which shows his ties to high levels of international free men." Breide emphasized what the founding principles organized crime, as well as to the U.S. intelligence com­ also state: that "economics, which i�inseparable from social munity. questions, has a clear objective: that man lives, and lives

EIR October 16, 1992 International 41 well. Therefore, economic activity cannot be understood as separate from morality and social justice."

An international coalition The fact that the founding conference of the new move­ How the communists ment received 90 messages of support from 25 countries is testimony to the commitment of patriots internationally to these principles. At least three of the messages from outside with slanders against Argentina came from individuals who are imprisoned be­ cause of their opposition to the policies of the Anglo-Ameri­ Part I, by Anno Hellenbroich can establishment: Panama's Manuel Noriega; U.S. indepen­ dent presidential candidate Lyndon LaRouche; and Lt. Col. Jesus Ortiz Contreras, a member of Venezuela's Bolivarian In our Sept. 11, 1992 issue, EJR urged readers to demand a military movement. The reading of each message was met full retraction from every media outlet that circulated the with thunderous applause and shouts of slogans such as "the scurrilous lie that "LaRouche/'V as involved in the assassina­ Malvinas are Argentine," "the Canal is Panama's," "Viva the tion of Olof Palme." To date, although the true story has Great Fatherland," "Viva Argentina." appeared in some international press, no U.S. media have In his speech to the conference, Colonel Seineldfn called printed or broadcast retractions. The fo llowing article pro­ for the very thing that most frightens the internationalbank­ vides more information to put the media on the spot, where ing community: "Our nation must integrate itself with lbero­ they belong. America's brother peoples, and those of the world ....In our America, today submerged in the tragedy of anarchy At the end of August, a bomb ijlew a hole in the international and political corruption, economic catastrophe, and a narco­ psychological warfare operations. In Sweden, Herbert terrorist war which expands daily . . . the only hope for Brehmer, a former officer of lthe communist East German survival is the desired revival, from among the ashes, of Ministry for State Security (the Stasi), six years after the authentic nation-states, supported by their people and their Feb. 28, 1986 assassination ofiSwedish Prime Minister Olof historical culture." Palme, revealed that he had personally invented the web of The National Movement, the colonel insisted, "is the lies according to which Lynddn LaRouche and the political vital force of the nation ....[It] must be for the Fatherland movements associated with him-the European Labor Party what the soul is to man. Without it the body, materialized as (EAP) in both Sweden and Germany, and the LaRouche political action, cannot sustain itself or live." In Argentina's wing of the Democratic Party in the United States-had been history, he explained, this movement has inspired heroic involved in the assassination. !For eight years, this Stasi lie deeds. Today, "because of intrigue, treason, and the subse­ has been trumpeted throughout the world's media. quent aggression it suffered," the movement is weakened, This lie was an essential preparation for the political trials "but latent." against LaRouche and his movement in the United States. As Colonel Seineldin warnedthose present that "our forefa­ LaRouche's defense lawyer, f.,rmer U.S. Attorney General thers, history, and all men and women of good will in Argen­ Ramsey Clark, has repeatedly !emphasized, before he could tina are watching us. In our hands is the power to give life to be thrown into prison, LaRouche first had to be publicly the movement which reflects the national being, in its fight branded by the media as a "non-person." The special "Get to rescue the Fatherland. . . . Know that the task we begin LaRouche" task force inside thIe U.S. government, and such today together is rioteasy , but as the founder of the Fatherland hate groups as the Anti-Defamation League (ADL), were said, 'It is for men and women of courage that such enter­ only too glad to pitch in with this worldwide defamation prises were made .' " campaign. The significance of such a nationalist movement being Immediately after Palme's assassination, thousands of founded in the midst of profound internationalcris is, was not news wires, radio reports, and newspaper reports rushed to lost on the Anglo-American establishment and its friends. A allege that LaRouche and the RAP were the "right-wing cir­ particularly hysterical attack came from the Buenos Aires cles" out of which the assassination had been planned and leftist daily Pagina 12, known also to convey the views of carriedout . Immediately following the firsttwo waves of this the U.S. Embassy. Under the headline "The Cross and the worldwide slander campaign, • LaRouche stated repeatedly Sword," the paper ranted that the MINeII possessed an that this was in fact a campaign· of political defamation delib­ "apocalyptic and conspiratorial view of the world" and re­ erately launched by the KGB ; and other eastern European tailed slanders against Lyndon LaRouche, describing him as intelligence services. The opening shot was fired at the fa­ an "obscure personality" with undue influence on the mous press conference given by Georgi Arbatov in Moscow MINeII's founding. on March at which he said that people in the Soviet 1, 1986, :

42 International EIR October 16, 1992 work they did (although the truth of these descriptions is of course difficultto ascertain). Bohnsack reported the following about his "active mea­ sures," when they concocted the so-called Kohl-Biedenkopf poisoned theWe st wiretap affair in 1975:

Der Spiegel: That had to do with an illegally recorded tele­ LaRouche phone discussion between Helmut Kohl, chairman of the CDU [Christian Democratic Union] aM his secretary general at the time, Kurt Biedenkopf. The text was anonymously leaked to Stern magazine, which unleashed a storm of contro­ versy. The true culprits have never been identified. Union know that the murderers are to be found among west­ Bohnsack: They're sitting in front of you! Our bugging ex­ ern "reactionary" circles. perts gave us the transcript. We doctored it to look like a And now, following the collapse of the communist sys­ transcript made by aU.S. intelligence service, and let some­ tem in the East, former Lieutenant Colonel Brehmer comes one at Stern run across it. It was SUpPOsed to look as if top into the light of day for the firsttime , with a piece of the truth German politicians were being bugged by American intelli­ about this targeted slander campaign. gence services. Stern printed our version. Kohl and Bieden­ News media in Mexico and Peru have taken up these kopf later confirmedtheir telephone conversation. admissions of a Stasi disinformation specialist, as a unique instance in postwar history. On Sept. 14, the Mexican maga­ Der Spiegel: The contents had been correctly reported? zine Diez published a detailed report about the statement of Bohnsack: Yes; we only falsifiedthei source. the ex-Stasi officer to the Swedish journallournalisten, on how on the third day following the assassination, he had laid So, it was a typical "dirty trick" in the worst Stasi tradi­ down a false trail. Diez added a comment on the dirty role tion. From these interviews, the mission orientation of this played by the ADL and the NBC television network in the disinformation department emerges clearly: slandering of LaRouche. Angel Palacios Zea wrote in Diez: • exposure and defamation of other states, governments, "Two years later, in October 1988, Erich Honecker, leader political groups, and individuals; of the communist government of former East Germany, • inciting the population against state institutions, and awardeda medal of honor to Edgar Bronfman, honorary vice disrupting and influencingthe political policymaking process president of the ADL. The ADL . . . played a central role in specific countries; in the operations of the U.S. intelligence services against • disruption of the relations among non-communist LaRouche ....The slanders were an integral part of the states, especially between countrie� of the so-called ad­ secret intelligence war launched by the Bush administration vanced and developing sectors; with a number of politically motivated trials, leading to the • keeping westernint elligence strvices offbala nce, and imprisonment of LaRouche on Jan. 27, 1989." discrediting them. One crucial task of the disinformation department con­ ' ' Functions of a psywar officer sisted in approaching journalists, politicians, and economists In order to measure the significance of Dr. Brehmer's as cleverly as possible and turning them into "unconscious statements, and of the modus operandi of Department X of manipulators" or "useful idiots," by having them run across the HVA (Hauptverwaltung Aufklarung-the "Main Bureau such "cribbed" material. of Enlightment") in the Stasi, the little brother of the Soviet Two examples cited by Brehmer and Bohnsack are partic­ KGB , let us take a brief look at Brehmer's career. ularly noteworthy in connection with the political witchhunt Aftermilitary service, Brehmer was promoted to the po­ launched against the LaRouche movement. In the words of sition of historian, specializing in military history. Beginning the Stasi colonels, the concept of such "psychological war­ in 1961, he worked with the military intelligence service fare" was relatively simple: For example, secret information of the German Democratic Republic (G.D.R.). After the coming from the West (through bugging, covert reproduc­ formation of Department X ("Active Measures, Disinforma­ tion, etc.) underwent an "expert reworking" and was then tion") in 1966, he soon switched over to the Stasi, later played back into the West, functioning there according to the becoming active in Section 5 ("Intelligence Services") until "time bomb principle." Provided the "trajectory , timing, and shortly before the collapse of the East German communist favorable circumstances" were calculated correctly, the regime in late 1989. In interviews with the German weekly "moral impact" of such "information" was tremendous. magazine Der Sp iegel, Dr. Brehmer and his colleague, Lieu­ In the news media, special efforts were made to give tenant Colonel Bohnsack, reported a few more details on the strong support to the daily Berliner EXtradienst. "Its founder,

EIR October 16, 1992 International 43 Carl Guggomos (code name 'Gustav'), who had worked at Heinrich, from 1982 until her death in 1987, had been simul­ the SPD' s [Social Democratic Party weekly paper] Vorwiirts, taneously employed by the newspaper tageszeitung and the soon got into both editorial and material difficulties. Via Stasi, its editors really ought now to clearly distance them­ numerous already available easterncontacts , Guggomos then selves from such lies as those which came from Mr. Brehm­ came across the G.D.R. Association of Journalists, and thus er's Stasi pen about the suspected "participants in the Palme came into contact with us. Without our editorial contribution, assassination. " and without our funding, Guggomos and his Extradienst ' ' ' ' ' would have never survived." Tageszeitung : Stasi s Ieftwing tool ? In light of these admissions, it is no longer surprising What did Brehmer himself have to say to the Swedish that in 1975 the Berliner Extradienst was one of the first journal Journalisten, about what happened three days after publications in Germany to pick up the V. S .-fabricated char­ the Palme assassination, when Department X had been di­ acterization of the LaRouche movement as "violent" and rected to intervene into the police investigations? "On my "right-wing," after Stasi chief Erich Mielke had pointed the desk I drafted plans about pow the EAP theory could be paper in the right direction. convincingly injected into the Swedish police investigation. Other channels of influence ("legal covers") emerge in The plan consisted of having a Swedish daily paper receive relation to the Stasi's association with phony "Nazi-hunter" an anonymous telephone calJ. This was to occur during the Beate Klarsfeld. According to Brehmer and Bohnsack, first week following themurder ." Klarsfeld, while working many years ago as the contact per­ And then, Andreas Juhnke, in a report datelined Stock­ son of one of the Stasi's legal fronts, received incriminating holm appearing in Tageszeitltng on March 3, 1986, became material on Chancellor Kurt Georg Kiesinger. So it is no the first in Germany to repoI!t about alleged rumors that the surprise that the Stasi's relations to such ostensibly Jewish Swedish police were concenl;rating on "right-wing extremist organizations as B'nai B'rith or the ADL, and also to the circles, all the way to the 'European Labor Party, EAP.' " As V.S. Justice Department's Office of Special Investigations his source, Juhnke cited the .Swedish newspaper Expressen (OSI), were frequently utilized to feed out such "doctored" (misnamed Express in his article), even though it was only reports. One demonstration of this is the German Association on the following day that the latter paper published its own of Those Persecuted by the Nazi Regime (VVN) and its story on the EAP. It would be interesting to find out more newspaper Die Tat, which was always ready with new smears from Juhnke and Brehmer about how the interplay among against LaRouche. the Stasi, Tageszeitung, Expressen, and the Swedish police "Such useful left-wing tools would line up at our door, actually functioned. Today, six years later, Tageszeitung and, whenever possible, they would always receive material seems to have undergone a perfectly smooth transition from from us." unabashed recipient of StasitIaunched news reports, to the But the "business" they had with the EAP in Germany recipient of similar "information" from V. S. intelligence cir­ had quite different motives, since Brehmer confirms that at cles-at least insofar as LaRouche is concerned, as is shown that time he was working in Section 5 ("Western Intelligence by its most recent article slandering the work of the Schiller Services"), whereas normally this particular "business" Institute in Poland. would have been handed over to Section 2. The next great wave of international slander was set off The following portion ofhis Der Sp iegel interview sheds when a certain Willy Silberstein was allegedly the first to some light on this: "Another action, under the code name "find," among the signers qf a petition circulated by the 'Flanke,' was directed against strategic and military policy Swedish EAP, the name Viqtor Gunnarsson, thus bringing efforts of NATO, with special attention to the northern and one of the people who had 1;>een under investigative arrest southern flanks." Indeed, it was in March 1983 that directly into connection with ,the EAP. On March 27, 1986, LaRouche's proposals to construct a cordon of beam weapon the pro-LaRouche German : newspaper Neue Solidaritiit defenses, resulted in President Reagan's famous speech inau­ wrote the following about th¢ interplay of these "useful idi­ gurating the Strategic Defense Initiative. The speech set off ots" (who are constantly term¢d so by the ex-Stasi psycholog­ alarm bells in Moscow, East Berlin, and elsewhere. A flood ical warfare experts) in this KGB-steered campaign: "Willy of grotesque slanders was unleashed against LaRouche and Silberstein, who is connected to the ADL and who wrote the his wife Helga Zepp-LaRouche. CorrespondingV.S. circles slander article in Svenska Dqgbladet along with Lindquist, played a supporting role. is also a good friend of Folke Schimanski, a communist radio That, in any case, is the reason that, fromMoscow 's side, journalist. Schimanski maintains quite good contact with the assassination of Palme was the moment to achieve "the Bruno Storm, the Stockholm �orrespondent of the G.D.R. 's greatest moral impact," with a well-planned campaign of news bureau. The sister of the communist Schimanski, Vera character assassination against LaRouche. Oredsson, is chairman of th� official Swedish Nazi Party Following the recent arrest of Baader-Meinhof "lawyer" (NRP)." Interesting connect"ns indeed! Perhaps Brehmer Klaus Croissant and the revelation that his client Brigitte or Storm might like to say mQre about them.

44 International EIR October 16, 1992 called it urgent "that voices from all over the world be heard to demand that the life of Dr. Abimaeli Guzman be guaran­ Shining Path launches teed"-before Guzman's speedy militltry trial succeeds in "stunning the people of Peru as well lis supporters of Dr. terror to free Guzman Guzman in other countries. " Most members of the IEC are know b: Shining Path advo­ cates. Among those now openly joinin� the Peruvian Mao­ by Gretchen Small ists' war, however, are longtime U . S. leftist lawyers Leonard Weinglass, William Kunstler, and Pettt Erlinder, the presi­ On Oct. 7, a Peruvian military court sentenced Abimael Guz­ dent-elect of the National Lawyers GuUd. man, the mastermind of the genocidal terrorist group Shining The IEC called for "progressive fOf(�es" around the world Path, and 10 other of its leaders, to life imprisonment. The to initiate "vigorous, bold, and rapid" iactions on behalf of court ruled that "the terrorist Shining Path is a criminal orga­ Guzman, including a "worldwide day! of mass actions on nization that seeks by every means to destroy the Peruvian Oct. 7." What kind of "actions" this I means was seen in state and establish a totalitarian regime," and imposed a $25 Ecuador Oct. 1, when a Maoist group �ombed a TV station billion fine, roughly equivalent to the damage which Shining in Quito, and justified it as an act "in 4efense of Guzman's Path is estimated to have done to Peru in its 12 years of war , life." Leaflets found at the scene alSO! threatened Peruvian which the government may seek to collect by seizing Shining President Alberto Fujimori when he vi$its Ecuador in Octo­ Path's foreign banking accounts, enriched through its partici­ ber, and called for armed rebellion to l establish "a Popular pation in much of the cocaine traffic from Peru. Republic of Ecuador." I For years, arrested Shining Path terrorists walked out of Bolivia, like Ecuador, has been dtsignated "a zone of jails, released by judges corrupted by bribery and terror. As conflict" by Shining Path, the head of t�e Lima metropolitan recently as September, the terrorists had killed a judge who committee, "Comrade Thomas," threalened in an interview had dared give life sentences to two terrorists. Guzman and which Peru's Sf weekly published for $hining Path in early his cohorts, therefore, were given top-secret, summary mili­ October. "The Bolivian state, like all �tates, is condemned tary trials, the identity of the judges protected by hoods and to be demolished"; this is the goal of th� Maoist gtoup, Revo­ electronic voice distortion, and the verdict signed in code. lutionary International Movement (RIM), of which Shining Within hours of the decision, Shining Path set off five Path is a part, he said. bombs in Lima and hijacked a Navy bus with civilians ' aboard, to hold as hostages for prisoner exchange. Annihila­ Guzman s legal game tion squads murdered four Air Force men and two policemen The IEC sent a delegation of U.S.,iGerman, and French in a public market; machine-gunned a police captain as he lawyers into Peru on Sept. 30. While they did not succeed in dropped off his children in front of a packed schoolyard; held attending Guzman's trial , they provide� Shining Path promi­ a "people's trial" of three opponents, and forced townspeople nent press coverage inside Peru, and their findings were to watch as they burned one alive, bludgeoned another to broadcast internationally as objective ilegal opinion raising death, and shot the last. "questions about the fairness" of GuzqJ.an's trial , the Oct. 6 As for the government, terrorists handed a message to Christian Science Monitor reported. the international press in Lima which warned: "We will What the Monitor refused to tell lts readers, however, freezeyour smile. . . . Learnto suffer. Learnto die." was that this delegation was a Shinin� Path operation: the Shining Path combined its bloody terrorism inside Peru lawyers from France (Anne Blanchet l»arodi) and Qermany with an international mobilization, seeking to generate at­ (Martin Heining, said to be a lawyer fo� the German Baader­ tacks upon the Peruvian government. Western nations, in­ Meinhof terrorists) are members of Sh�ning Path's Commit­ cluding the United States and Great Britain-the German tee to Support the Peruvian Revolutioh; the delegation was Parliamentjoined in by holding October hearings on alleged hosted in Peru by Shining Path' s Ass�iation of Democratic "human rights violations" by the Peruvian government­ Lawyers; and the translator was Herb<$toOcasio , a Shining continue to play this Shining Path game, by withholding Path spokesman in the United Statesi who works with the aid to the Peruvian government, saying that waging war on Revolutionary Communist Party. Thei lawyers issued state­ Shining Path is "undemocratic." ments hailing Guzman as "the recogn*ed leader of millions Shining Path quickly established an "InternationalEmer­ of peasants, workers , students, intell¢ctuals and others" in gency Committee (IEC) to Defend the Life of Abimael Guz­ Peru, justifiedhis advocacy of "selectite assassination," and man," headquartered in London, with some 30 members argued that Shining Path's war cannot f'be dismissed as 'acts from the United States, Canada, Britain, Italy , Germany, of terrorism.' "In the words of the Ge$an lawyer, any court Spain, France, Mexico, Kenya, South Africa, Sri Lanka, which introduces "the word terrorism to denounce Shining Australia, and Nepal. In an Emergency Bulletin. the IEC Path has lost all sense of reality"! I

EIR October 16, 1992 International 45 'Indigenism' is an assault on Indians and national sovereignty by Carlos Mendez

Using exactly the same "indigenist" arguments of the narco­ that the U.N. and the IADB were discussing the creation of terrorist Shining Path of Peru, a number of so-called indige­ an "indigenous fund" of $40 million "to aid indigenous nous groups have intensified their protests and threats of groups in Latin America." · The U.N. is also planning to violence against the Oct. 12 celebration of the fifthcentenary declare 1993 "the International Year of the Indigenous Peo­ of Columbus's voyage to America. ples of the World," as contained in U.N. Resolution 451 So far, Shining Path poses the greatest immediate threat, 164 of Dec. 18, 1990. The IlilternationalLabor Organization but other groups, such as Colombia's Sim6n Bolivar Coordi­ (ILO, part of the U.N. system) is working to get Convention nating Group, and Bolivia's Tupak Katari Guerrilla Army 169 on Indian Peoples and Tribes approved, and since 1982 and Tupac Katari Indian Movement (whose leader has threat­ the Working Group on Indigenous Peoples (WGIP) of the ened to take up arms to defend "indigenous" rights), have Human Rights Commission ,based in Geneva, Switzerland, demonstrated that they share Shining Path's terrorist has been pushing for a Declaration of the Rights of Indige­ methods. nous Peoples. According to press reports, the Tupac Katari Guerrilla The indigenous movement is nothing but a fraud, partof Army (EGTK), sympathizers of Shining Path, had planned Bush's "new world order"-as supported by the U.N.-to to attack the Spanish and U.S. embassies in La Paz, the impose a world governmentJ.lpon sovereign nations, as well capital of Bolivia, on Oct. 12. Felipe Quispe, leader of the as to eliminate the indigenous peoples themselves through group, was arrested at the end of August. hunger and disease. Indigenous members of national legislatures from 17 This reality was demonstrated by the program voted by countries of Ibero-America, the United States, and Canada the World Conference of Indigenous Peoples Concerning met in La Paz the week of Sept. 28 for the Fourth Meeting of Land, Environment, and Development, held in Rio de Janei­ Indigenous Parliamentarians. Former Bolivian congressman ro , Brazil, June 25-30 as the "indigenous" part of the Eco- Constantino Lima, head of the Tupac Katari Indigenous 92 Conference on the Environment. The program was con­ Movement, called for all indigenous peoples of the hemi­ tained in the so-called Kari-Oca Declaration-Kari-Oca be­ sphere to "rise up in arms to demand that Spain pay $10 ing the indigenous name for Rio de Janeiro. billion for the devastation and death Spain brought to Latin The Kari-Oca Conferenc�, as the meeting is known, was America." formally organized, with U.N. support, by the Coordinating In Colombia, the Sim6n Bolivar Coordinating Group, Body of Indigenous Organizations of the Amazon Basin composed of the communist FARC and the ELN, have been (COICA), a group dating from 1984, whose present head is intimidating peasants into joining protest actions against the the Peruvian Evaristo Nugkang, who, among other things, Oct. 12 celebrations. The "Indigenous Summit," held in Pan­ calls for "debt for Indian land swaps, with which resources ama the week of Sept. 21, called for a "continental indige­ we can restore our lands. " i nous strike" on Oct. 12, including blocking highways. In demonstrations in Santo Domingo, Dominican Republic, Human sacrifice and e�ding nation-states one person has already been killed. Santo Domingo is the Among the most relevant points contained in the Kari­ focus of the celebration because Columbus first touched land Oca Declaration are: on that island in 1492. "16) We maintain our right to our traditional way oflife," which means in practice to condemn the indigenous peoples The fraud of indigenism to extinction in the near teI$ through hunger and disease. This campaign against celebrating the 500th anniversary For instance, Venezuelan anthropologists have reported that of Columbus's voyage is the beginning of an international the Yanomami Indians inhabiting the Venezuelan Amazon offensive, backed by international organizations such as the region have an average life-span of 30 years. Inter-American Development Bank (IADB), and above all "17) We maintain our right to our spiritual way of life." the United Nations. These and related demands are tantamount to a call for the For example, the New York Times of Aug. 24 reported return of the human sacrifiqe of the Aztecs, and to other

46 International EIR October 16, 1992 aberrations that form a substantial part of the cultural, reli­ create a new nation and recoup large amounts of ancestral gious, social, and political life of the ancient and primitive territory," adding that the Mapuche movement "is perhaps indigenous cultures. one of the best examples of a growing trend in the last five "21) The United Nations should have a special procedure years in Latin America of Indian groups trying to assert their to deal with issues arising from violations of indigenous treat­ rights, reclaim territory, and challenge existing laws and ies. 22) Treaties signed between indigenous peoples and non­ governmentpolici es." indigenous peoples must be accepted as treaties under inter­ The Times article called for international protection for national law . 23) The United Nations must exercise the right the Indians, stating that "their cultures, religions, and lan­ to impose sanctions against governments that violate the guages are under constant pressure from the westernized rights of indigenous peoples." world," and that this began 500 years ago, with the arrival As can be seen, the aim is supranational legislation and of Europeans. the supranational supervision of the U. N., which is totally The Declaration of San Crist6bal, which emerged from in step with the Bush administration's efforts to eliminate the International Amerindia Seminar toward the Third Mil­ national sovereignty, and with plans to make the U.N. into lennium, which took place the second half of June 1991 in a world government. San Crist6bal Las Casas, Mexico, said that "the America of At the beginning of July, U.N. Secretary General Boutros our hearts, Amerindia, has been and will continue to be Boutros-Ghali proposed that the United Nations force its indigenous in its essence, because the original peoples here members to provide troops for a permanent international constitute the nucleus of its identity." Referring to the "accel­ army under U . N. command. Said Boutros-Ghali, "the era of erated global change" that the world. is experiencing, the absolute and exclusive sovereignty ...has passed." declaration affirmed that "this challenge can only be con­ The indigenous movements are thus serving as a battering fronted in the framework of the profCilUnd reform of states ram against governmentsthat oppose the imposition of supra­ and of international relations," and added that among the national world rule. fundamental rights of the indigenous is "the special means of conserving, recovering, and increasing the lands and terri­ Separatism tories that they have traditionally occupied." Points 31 to 42 of the declaration deal with the question The conference of San Crist6bal was organized by the of supposedly Indian lands, and amount to a call for separat­ National Commission of Justice for the Indigenous Peoples ism. For example, Point 34 says, "We assert our rights to of Mexico, along with Unesco. demarcate our traditional territories. The definitionof territo­ The former Soviet Union also promoted all of this from ry includes space (air), land and sea ...." And Point 36 the standpoint of an Ibero-America reorganized around eth­ says: "Indigenous peoples reject the assertion of non-indige­ nic groups, a perspective that continues to be carried out by nous laws onto our lands. States cannot unilaterally extend communist and liberal anthropologists such as the Brazilian their jurisdiction over our lands and territories." Darcy Ribeiro, who has often said that "the indigenous peo­ This is one of the central demands of the president of the ples must get a response to their demands, which are: juridical COICA, formally organized at the Kari-Oca Conference. It rights and restitution of their lands. ", In an interview pub­ is also a central demand of the World Council of Indian lished by El Dia Latinoamericano onJuly 8, Ribeiro stated Peoples (CMPI), based in Canada and founded in 1975 with that "what is happening with the Basques [in Spain] could the support of the U.N. Educational, Scientific, and Cultural happen with the Mayas of Chiapas [sduthern Mexico] . They Organization (Unesco) and the International Center of Hu­ could lose patience and explode. In Mexico, as in the Andean man Rights and Democratic Development, headquartered in high plateau and in Guatemala, the region could be trans­ Montreal. One of the CMPI's three basic tenets is called "The formed into tinderbox where 'ethnic wars' begin." Bases of the New Relations," which translates, according to Mexican anthropologist Lucina Jimenez L., as, "We must Against development change the treaties between the Indian peoples and the nation­ The attack on development, techrtology, and industry is states. " unmistakable, and means condemning the Indians to misery The Council of All the Lands (based in Mapuches, Chi­ and death. Point 44 ofthe Kari-Oka Declaration says, "Indig­ le), a participant in the Kari-Oca Conference, and the Ma­ enous peoples should encourage their peoples to cultivate puche Foreign Committee, also of Chile, are the vanguard their own traditional forms of products rather than to use today of the separatist indigenous movement. For some time, imported exotic crops which do not benefit local peoples." the Mapuche Indians have been demanding their own territo­ Point 66 says, "The concept of development has meant the ry on lands now part of Chile and Argentina. destruction of our lands." The New York Times featured the Mapuches' demands in And to ensure no shortage of pretexts for foreign inter­ a front-page article on Aug. 24, where it reported that "more ventions, Point 87 says, "We need to have foreign observers than 200 representatives of the more radical Mapuches in come into our indigenous territories to oversee national state Chile and Argentina met recently . . . to discuss how to elections to prevent corruption."

EIR October 16, 1992 International 47 Moscow

Power shift against IMFtakes effect, but imperialdan ger grows by Konstantin George

A power shiftin Moscow, leading to a break with Internation­ working for westerninterests 1)0 sabotage Russia. He denounced al Monetary Fund-dictated policies but also to an overt Great the takeover of Russia by "the dollar" and the destructionof the Russian imperial policy, began to take effectin the firstweek ruble. Turning to the Gaidar government, Yeltsin declared that of October. The tone was set by Russian President Boris "it must finally be made cleat" whether "we support the ruble Yeltsin in his address to the Russian Parliament on Oct. or foreign currencies.. ..Wf! must stop paying for goods and 6. Although he pledged to keep his pro-IMF acting prime services in foreign currencies! The ruble must become the sole minister, Yegor Gaidar, he also made it clear that Gaidar's means of payment in Russia. f • • The conditions for a realistic team would be purged, giving Russia a cabinet committed to exchange course must be created." ignoring IMF conditionalities and pursuing industrial protec­ The anti-Gaidar forces lmmediately acknowledged the tion policies as demanded by the Russian Civic Union, the power shift in their favor. Speaking to factory workers in the industry lobby headed by Arkadi Vol sky . Ukrainian capital of Kiev later that day, Civic Union head Such a break with the IMP's disastrous "shock therapy" is Volsky commented: "It is pleasant that Mr. Yeltsin echoed absolutely necessary to prevent the economy from plunging our views." But, he demandf!d, Yeltsin must follow up with beyond the point of no return, with unpredictable political deeds if he wants Civic Union support. and social consequences. But the situation is fraught with tremendous danger, as the more westerngovernments insist Imperial rebirth that Yeltsin go along with IMF dictates, the more likely is a The imperial thrust of ,the Moscow power shift was fascist-imperialist backlash that could lead down the road to marked by Yeltsin's annountement that Russia was sending World War III. additional troops to the Georgian region of Abkhazia, to Along these lines, Yeltsin belligerently ass.erted "the "protect" the "railroad line" and "the coastal region." These rights of Russians" which are being "trampled on" in the formulations were tantamount to announcing that Abkhazia Baltic republics, above all in Estonia, and in the Georgian had become a Russian protettorate, as every city and town region of Abkhazia. He heralded Russian military interven­ of any importance lies eith¢r along the rail line or in the tion on behalf of "endangered" Russian minorities in any coastal region. I state, regardless of whether or not they are a member of the The imperial restoration policy was also symbolized in a Community of Independent States (CIS). very Russian manner by the s�cond major Yeltsin appearance on Oct. 6, carried live by RU$sian TV, and, in contrast to the 'Corrections must be made' importance of the event, ignoredby nearly all western media. The Yeltsin speech was a funeral oration for the Gaidar In the Kremlin, Yeltsin gave a state reception on the occasion team. The Russian President told the Parliament that "correc­ of the 600th anniversary of tbe death of St. Sergius of Rado­ tions must be made in the reforms. That is a demand from nezh, the Russian Orthodox imonk who led the anti-western the President." Yeltsin blasted Gaidar, the "Gaidar team," Hesychastic movement and the monastic revival in 14th­ and singled out Economics Minister Aleksandr Nechayev century Russia, and its companion political policy where the and Foreign Economic Relations Minister Pyotr A ven by monks of the lands to the ndrth and east of Kiev supported name for not considering the proposals of Volsky's Civic the ascendancy of Muscov� and the unification of all the Union: "These ideas must be used and not rejected only Russian principalities under Moscow in the successful over­ because they were devised and proposed by people other than throw of the Tatar yoke. The Kremlin ceremony, where Yelt­ Gaidar." Yeltsin declared that he was "profoundly dissatis­ sin was flankedby Moscow Patriarch Aleksi II, exile Russian fied" with Aven's ministry, which "lacks competence, Orthodox Patriarch of America and Canada Feodosius, and promptness and resolution, and consistency in defending the Holy Synod ruling group of the Russian Orthodox Russia's interests." Church, stressed the role of St. Sergius, renowned in the Yeltsin stopped just short of accusing the Gaidar group of Muscovite Russian Chronicles as the "builder of Russia" and

48 International EIR October 16, 1992 for having united "all the Russias," i.e., all the eastern Slavs, 100,000 Russian troops based there. The Georgian statement Russians, Ukrainians, and Belorussians, and having liber­ produced a blunt warning later that day from Russian Defense ated Russians from foreign rule. Minister Gen. Pavel Grachev, that if Russian bases were attacked, the troops would shoot back. Some of Georgia may be seized Moscow made sure that the Georgian leadership had got­ The firstRussian military intervention that will lead to an ten the message that the Russians were not bluffing. On Oct. area bordering on Russia being incorporated into the Russian 3, a helicopter carrying Georgian President Eduard Shevard­ state, is under way in the Georgian region of Abkhazia, an nadze to a meeting with Russian Deputy Foreign Minister ethnically mixed region which includes non-Russians and Yuri Vorobyov in the border town of' Gantiadi, was shot at Russians. As Yeltsin was addressing the Parliament, Ab­ by a Russian Mi-24 helicopter gunship. khazian irregulars, backed by thousands of Muslim tribal From the Abkhazia conflict, Russia will gain territory "volunteers" from the Russian North Caucasus and several and Georgia will be truncated-the only question is by how hundred Russian Cossack "volunteers," and all liberally sup­ much. Georgia could even break apart into several mini­ plied with weapons, armor, and ammunition from the Rus­ states, which would become Russian protectorates. sian Army, in astonishingly well-coordinated attacks for "ir­ regulars," administered the second crushing defeat to Baltic states next Georgian forces in northern Abkhazia within five days. In The next Russian conflict with a small former Soviet the first defeat on Oct. 2, the key city of Gagra was taken in republic neighboring state will be with Estonia in the Baltic heavy fightingand over 100Georgian troops were killed. region. The die for this was cast through the election-by On Oct. 6, all other towns and villages between the Ab­ Parliament, not popular vote-ofEston ia's new nationalist­ khazian capital of Sukhumi and the Russian border had fallen populist President, LennartMeri . In thepresidential elections to the Abkhazians. In addition to the 200 Georgian troops in late September, Estonian incumbent President ArnoldRu­ killed in the several days of fighting, between 800 and 1,000 utel received nearly half the vote in a multi-candidate field, Georgian civilians living in and around Gagra were massa­ with Meri coming in second with less than 25% of the vote. cred. The atrocities produced their intended effect-a mass Had Estonia practiced the same popular runoff procedure exodus of the Georgian population, who made up 40% of used in every western democracy, Estonia's new President Abkhazia's inhabitants, out of Abkhazia. Hundreds of Geor­ today would be Arnold Ruutel, and this on the basis of the gian troops and thousands of Georgian civilians fledin panic popular vote where only ethnic Estonians are allowed to vote. across the border into Russia, while others fled south into But, under the Estonian Constitution, if no one attains 50% in Georgia. In Sukhumi, where overland escape routes were the firstround, the Parliamentdecides who will be President. either blocked or dangerous, thousands streamed to the air­ Since the nationalists command a majority in Parliament, port awaiting Russian and Georgian planes and helicopters they voted in "their man." Through this de facto coup which to flythem out. By Oct. 8, the "Abkhazian" forces were just played straight into the hands of the imperialists in Moscow, outside Sukhumi, and its fall was imminent. disaster now looms over Estonia. The situation has reached the point where a Russian­ The Y eltsin statement duringhis Oct. 6 speech, that Rus­ Georgian war is imminent. This danger was clear on Oct. 3, sia would not allow Russians in the Baltic states to be "tram­ after the fall of Gagra, where Georgian planes bombed the pled on," was directed above all at Estonia and LennartMeri , town as part of a failed attempt to retake it. Yeltsin emerged who is a proponent of "ethnic cleansing." Meri, both during that day from a meeting of the Russian Security Council, the campaign and notably followingl his election by Parlia­ warning that any attacks by Georgians on Russian forces or ment, declared that he would "expel 200,000 Russians" from civilians in Abkhazia or anywhere in Georgia would produce Estonia, or about half the ethnic Russian population residing a Russian military intervention, and one not confinedto Ab­ there. While leading forces in Moscow clearly have the goal khazia. Yeltsin announced that Russia "reserved for itself' of eventually retaking the Baltic states (certainlyEstonia and the right to take "appropriate measures" to protectRussia ns Latvia, at least), there is still no popular Russian supportfor in Abkhazia. such policies. Should popular Russian support for imperial The Georgian State Council, in a meeting on Oct. 4 pre­ restoration in the Baltics materializej then the independence sided over by Defense Minister Ioseliani, responded to the of the Baltic states would be doomed. Yeltsin warningby ordering a general mobilization in Geor­ Should Meri expel the RussianS, Moscow will have a gia of some 40,000 reservists, and placed all military hard­ pretext and immense popular suppol!t to militarily intervene ware of the Russian Transcaucasus Military District on the in the Baltics. During the election campaign, allegations ap­ territory of Georgia under Georgian jurisdiction. The State pearedthat Meri'sfather had worked for the Soviet NKVD, Council further announced that it was considering demanding the KGB predecessor. Trueor not, no one knows. But a KGB the expulsion of all Russian troops based in Georgia. Any plant could not do a better job to pave the way for Russian such attempt, or move to enforce the hardware decree could action against the Baltics than Meri lis doing with his ethnic easily trigger an all-out war between Georgian forces and the cleansing program.

EIR October 16, 1992 International 49 An appealfr om the government of Bosnia andHerce govina ·

This statement, received Sept. 29, is being circulated inter­ side: nationally by the governmentof the Republic of Bosnia and • approximately loo,OQ(j) soldiers and officers of the Hercegovina. fonner JNA; • over 2,400 armored vehicles, out of which 600 [are] The facts about the war tanks; The Republic of Bosnia and Hercegovina, as an indepen­ • 50 aircraft, fighters; dent and internationally recognized state, has . been estab­ • 1,800 guns of various large calibers; lished after the dissolution of fonner Yugoslavia. Unfortu­ • a rocket-equipped brigade; nately, the dissolution process is developing neither in a • almost unlimited quantities of infantry weapons and civilized manner nor peacefully. The \yaroption, started in ammunition of all calibers; Slovenia, rapidly spread over Croatia, and then over Bosnia • additional forces from ,Serbia and Montenegro, spe­ and Hercegovina. cially trained in applying genocide to the non-Serbian popu- In multinational, multireligious, and multicultural Bos­ lation; and i nia and Hercegovina, war terror culminates in the aggres­ • complete logistics, including airports and combat air­ sor's aspiration not only to conquer the territories, but also to craft from Serbia and Monte ..egro . cleanse them of non-Serbian population. This is happening The purpose of the aggres�or's strategy is to conquer and despite the fact that the Republic's official authorities have get under its control more than 70% of the territory of persistently advocated a civilized and peaceful way of break­ Bosnia and Hercegovina, cleanse it of the majority Muslim ing up the fonner Yugoslavia. population and the Croats, and to come forward with a The authorities of Bosnia and Hercegovina Wtve,emirely request for recognition of the newly .created situation by the fulfilledthe procedural requirements for international recog­ international community. nition explicitly defined by the European Community and After more than five-months-Iong aggression against other international bodies during the process of dissolution Bosnia and Hercegovina, the impression is that the lonely of the fonner Yugoslavia. The developments in Bosnia and unarmed people are left by the international community. Hercegovina as such did not fit into the scheme for creating The international forums seem to try to present a war of the "Great Serbia" opted for, among others, by the complete aggression and conquest as a ,civil war, and ease their con­ almost one-national, well-armed fonner Federal Army science through some humanitarianaid providing for a limit­ (JNA) and extreme Serbian forces, under the militant leader­ ed number of displaced persons. ship of the Serbian Democratic Party (SDS). However, it is to be hoped that the world will finally get Great concentration of military forces and equipment of to the heart of the matter an4 give help necessary for the the fonnerJNA on the territory of Bosnia and Hercegovina, liberation of the whole territqry of the Republic. strengthenedby military effectives withdrawn fromSlovenia The liberation of the entire territory of the Republic from and Croatia, planned armament of a partof Serbian popula­ the aggressor is a prerequisitq for starting the creation of a tion in Bosnia and Hercegovina by the fonner JNA, and legal state, with the predominant role of the private sector strategy and tactics of aggression prepared in detail, enabled and a market-oriented econo�y. This is again a prerequisite the aggressor to blockade, within a comparatively short time, for more generous international financialand technical assis­ all the towns and larger settlements, roads, telephone. TV tance in reconstruction of the country destroyed by war, and radio communications, etc . On the defending side stood which is the topic of this paper. unarmed people confronted with the national (jeceit and L treason committed by their own armed forces. It is estimated Victims and horrors of warfare that the aggressor (Serbia, Montenegro, the fonner JNA, in Bosnia and HercegovJna and the militant part of the SDS) has concentrated on its The brutality and inhumarijtyof the aggressor during the

50 International EIR October 16, 1992 previous five months of war can hardly be compared with shelling. anything in the past. According to current reports: • Headquarters of major compapies in Sarajevo have • over 80,000 people have already been killed, of which been burnt down or destroyed, and most of the equipment more than 70% [are] civilians, including an extremely great [has been] stolen. number of children; • Very few factories have evaded robbery ofequipment , • more than 1.8 million people (42% of the total popula­ raw materials, finished products, technical documents, or tion) have been left homeless, of which about 400,000per­ complete destruction. sons escaped to Croatia and a great lot of displaced persons • Many agricultural estates have remained without live­ are wandering about the West European countries; stock, agricultural machinery, and provisions. Tens of thou­ • more than 100 concentration camps have been reported sands of private village holdings have been condemned to a on the occupied territory of the Republic where civilians are similar fate: Houses, farm buildings, cattle, and machinery confined, brutally tortured, and killed. have been destroyed. Snipers and machine-guns have been tactically placed • Urban transport facilities in several cities have been in all the towns and larger settlements with the purpose of completely demolished or stolen; Sarajevo is most directly terrorizing the whole population and paralyzing all vital ac­ affected by this, being the most populous city. Buses, trolley tivities. Children, women, old people, medical and humani­ buses, and trams have been completely destroyed, the electri­ tarian organization staff, and other citizens are everyday vic­ cal system and garages demolished, which, in addition, tims of this crime. makes life in Sarajevo almost unbearable. Schools, universities, and child-care centers are closed; • Documentation relevant to cadaster, geology records, students and children are either displaced, gone to war, or and water power engineeringhas be¢n destroyed and it will are taking refuge in cellars. take years of strenuous workto restote it. Numerous families are under great stress, [forced] to • Schools, libraries, hospitals, dhild-care centers, vari­ endure aggression and all 'it brings; innumerable are the hu­ ous institutes, museums, cultural aQ.d sacred buildings are man dramas, disappointments, and frustrations; many family subject to systematic destruction and,robbery. ties, ties of friendship and business relations have been bro­ All the aforesaid, along with everyday fighting, have ken off, which all give rise to doubt about the possibility of paralyzed economic activities throughout Bosnia and Her­ living together in these regions. cegovina, so that the authorities are faced with the serious problem of how to provide food, he�ting, and power supply Destruction and devastation for the coming winter, and how to organize the recovery of of material property the economy devastated by war. The aggressor's aim to rob, or to destroy all he fails to or cannot rob , is evidentat every step in this Republic devastat­ What must be done ed by war. With the coming of winter in Bosnia and Hercegovina, The extent and structure of the destruction, as well as the which is typically very demanding, the risk to life is growing methods and means being used, will be the subject of special dramatically. If exponentially greater quantities of humani­ investigations. Below are some illustrative examples. tarian relief are not provided, including food, medicines, • Literally complete towns are being tom down. Sara­ clothing, and shelter, the potential loss of life due to hunger, jevo, the capital of the Republic, has been exposed to more exposure, and disease may exceed 300,000, according to than four-months-long destruction by bombing and blocking the U.N. estimates. Vast new numbbrs of refugees could be of communications; it is being starved, water and electricity created and head toward Europe. This does not include supply has been cut off. additional casualties and refugees caused by the ongoing • Mostar is virtually destroyed, including its bridges, fighting. industrial plants, churches, mosques, and other urban facil­ Besides bringing an end to, or at least minimizing the ities. level of aggression, the only way tb mitigate the suffering • All bridges on the rivers Sava and Nereva, as well as and loss of life is to: dozens of bridges on other rivers, have been demolished. 1) distribute relief to all regions of Bosnia and Hercego­ • Railway bridges have been destroyed, wagons demol­ vina (and not just Sarajevo); ished or looted, locomotives ruined or looted. 2) establish several secured land corridors (especially • Postal and telecommunications systems have been dis­ Ploce to Sarajevo as well as Zagrep to Sarajevo); connected, main telephone centrals burnt down, TV and 3) repair promptly bridges and roads to facilitate travel; communication towers destroyed or controlled by the ag­ 4) build temporaryshelters and repair existing ones; and gressor. 5) insure the flowof adequate supply of water, fuel, and • Airport equipment has been looted from most airports; electricity. airports in Sarajevo and Bihad have been damaged by All this needs to be done without delay.

EIR October 16, 1992 International 51 InternationalIntel ligence

Valley and the north of the country. The and stability in Southeast Asia," Reuters re­ Mossad recall underlines Israelis, for their part, want to keep southern ported Oct. 2. Middle East war threat Lebanon because of their need for water Cam Slaid Vietnam had "turnedthe page from the Litani River-which they are al­ of past history" and looked forward to the ready pumping into Israel through secret All station chiefs from around the world of future . "We have done whatever possible subterranean conduits, sources report. What the Israeli intelligence service Mossad were in cooperating effectively with the United would be left of Lebanon would then be the called home to Israel over the weekend of States to settle the question of Americans small Christian enclave in the central part of Sept. 26, a Europe-based intelligence insider missing in action during the Vietnam War." the country. The issue of missing U.S. servicemen told EIR . The report provided additional evi­ The other major issue of negotiations has block¢d the normalization of relations, dence for the alert issued by U.S. indepen­ concerningLebanon , is the naturalization of and the United States still maintains a trade dent presidential candidate Lyndon some 400,000 Palestinians who have been embargo llgainst Vietnam. It is quite possi­ LaRouche (see last week's EIR) that the ar­ living illegally in Lebanon for years . The ble that tQe current Senate hearings on the rest of Jordanian parliamentarian Laith Shu­ Ta if Accords called for their naturalization, POW -MIA issue were designed to clear the beilat portended the danger of a "Temple a step which many world powers backed POW-MIA issue from the negotiating table. Mount" incident and a broader Middle East in order to tum a million Palestinians into On human rights, Cam said that every crisis. Lebanese, leaving that many less to be part state and �ation strove for the ideal of de­ "LaRouche might be right. All I can tell of a Jordan-Palestinian confederation. mocracy and freedom in its own way rather you is that there is a lot of activity in Jerusa­ than through a "stereotyped or dogmatic ap­ lem and Te l Aviv right now. Something big proach and still less through the adoption of is in the wind. All Mossad station chiefs models imposed from outside." In a refer­ from around the world have been called Savimbi issues threats ence to the United States, he added: "It is home to Israel . It happened this weekend," over Angolan election unacceptable that one nation may impose Sept. 26-27, the source said. "I don't know its own st�ndards of democracy and human what it means, but things like that, in the Jonas Savimbi, the head of the Angolan re­ rights upon another nation. And it is all the past, have happened only before very big bel group UNITA, in a statement issued on more unacceptable that one nation may developments, like the 1967 Six-Day War. Oct. 3, charged the ruling communist­ stand as juoge above another nation." It could mean anything, from an imminent backed Popular Movement for the Libera­ change in government in Israel, to a major tion of Angola (MPLA) with vote fraud, and assault being planned. Or, it could be what hinted at a new war, according to U.S. press you 're warning about. Or, something else. accounts. "It is the duty of us freedom Japan warns China In any case, the Israelis are obviously not fighters, those who through their blood and taking any chances." sweat brought about democracy to this against military buildup country, to tell you that the MPLA is not winning and cannot win," he said. Japanese Vice Foreign Minister Koji Kaki­ Partition of Lebanon Results have the MPLA ahead by 55% zawa has sharply criticized Beijing's recent to 25% for UNITA. International observers purchase of a fleet of Russian Sukhoi 27 being pushed by u. s. have not reported fraud . The bulk of the fighteraircraft, and its plans to buy a Ukrai­ UNITA support was expected to come from nian aircraift carrier. This means that "the The United States is proposing to Lebanon the countryside, but preliminary vote totals number of countries which feel a threat from that it take part in multipartite negotiations had shown the MPLA getting a smaller mar­ China will lncrease," Kakizawa told a To kyo between Syria and Israel, the only outcome gin in the cities than expected. The vote is symposium, entitled "Twenty Ye ars of Ja­ of which would be the partition of the coun­ still coming in. pan-China Relations," in late September. try, according to Lebanese sources. The U. S. "Our a¥i to China over six years is $5.6 policy is consistent with the implementation billion and; the aircraft carrier costs $2 bil­ of the Bernard Lewis Plan for the dismem­ Normalize relations, lion," Kakizawatold reporters. berment of nation-states in the Middle East. Formet Japanese Foreign Minister Sa­ Syria, after the recent elections in Leba­ Vietnam urges U. S. buro Okita lold the symposium that China's non , instead of withdrawing to the northern carrier purchase violates Japan's "Four Prin­ part of the country in September as stipulat­ Vietnamese Foreign Minister Nguyen Manh ciples" of fpreign aid, which say that To kyo ed by the Ta if Accords, has increased its Cam said in a speech to the U.N. General will cut ai� to countries spending too much stranglehold on that country. Assembly that "the normalization of rela­ on weapons. Okita is a top Tr ilateral Com­ In the context of overall negotiations, tions between Vietnam and the United mission collaborator and Sinophile, indicat­ the Israelis, according to these sources, States will benefit not only the Vietnamese ing the extentof the anger in To kyo over the would settle for letting Syria take the Bekaa and the American peoples but also peace Chinese military buildup.

52 International EIR October 16, 1992 Brilifly

• MIKHAIL GORBACHOV, the former Soviet President, has been barred from leaving Russia by the Constitutional Court because he has refused to testify in a trial to deter­ Opinion polls in Flanders show that the mine whether the Communist Party Spanish defense head number of those in favor of partition has should be outlawed. Gorbachov was risen to over 30%, the highest ever. This resigns over budget cuts forced to cancel a trip to South Korea. shift in sentiment has been accelerated by studies done at the University of Louvain, Spanish Secretary of State for Defense Jose • INDIA plans to invite Indonesia, popularizing the idea that each (rich north­ Miguel Hernandez resigned in late Septem­ Malaysia, Thailand, Singapore , and ern) Flemish family is paying the equivalent ber in the face of the biggest budget cuts in possibly other Southeast Asian coun­ of one car to a (indebted southern) Walloni­ 20 years . The defense budget will be cut tries to particip*e in joint naval exer­ an family every four years . overall by 1.5%. cises in the IndiFtn Ocean planned for Similar stories are coming out on the In May before the latest cuts, he had the spring of 1993, Navy chief Adm. Wallonian side. The summer cover issue of said, "First they told us to tighten our belts. L. Ramdas told a seminar in New Del­ the weekly Le Vif-I.:Ex press, for example, Now they want us to drop our trousers." hi, organized by the Naval Founda­ was entitled "What If Belgium Were about The latest defense cuts include 9% less for tion, a government-supported think­ to Fall Apart?" The report was obviously investment, which means that the Bazan tank. intended to plant the "separatist virus" in state shipyards at Cartagena will be shut people's mind along the line expressed by down along with the military satellite pro­ • THE NEW SOUTH WALES the leader of a newly created "Wallonian gram and the radar program for the airplanes synod of the Uniting Church of Aus­ movement," Maurice Lebeau, who ex­ on the carrier PrIncipe de Asturias. These tralia, which claims 1 .2 million mem­ pressed his enthusiasm for the "adventure planes, at present, cannot fly at night. bers, voted Sept. 27 to support the le­ for Walloons; the independence would be in Speaking to Congress, Economics Min­ gality of abortibn, without limiting it the case the acceleration of the process of ister Solchaga also announced that transport to medical necessity, rape , or defect regionalization would lead to partition." subsidies will be cut by 7.5%, the housing in the fetus, according to Reuters . The The article mooted 10 scenarios for the case budget by 0.4%, and industrial investment Uniting Church, formed in the 1970s, in which Belgium would simply be attached by 4% . embraces the Presbyterian, Congre­ to France, in the event that Wallonia According to Solchaga, "everything that gational, and Methodist churches. couldn't repay its enormous debts, ex­ can be cut from the budget will be cut," pecting France would help. except debt payment. Payments for interest • IRAN and the United Arab Emir­ on public debt are to increase by 20% . The ates broke off talks over the Iranian debt burden is such he said, that "budget Germany to approve 'out occupation of the island of Abu Musa growth for 1993 will be nil, leaving aside at the entrance of the Persian Gulf on expenditure for interest rates. The accumu­ of area' deployments? Sept. 28. The immediate reason talks lation of the public deficit, and debt to pay broke down was the inclusion by the that back, along with the high interest rates, French Defense Minister Pierre Joxe and U.A.E. of two other disputed is­ has forced us to increase by 400bill ion pese­ German Defense Minister Volker Ruhe an­ lands, the greater and lesser Tumbs, tas the budgetary provision to cover this." nounced at a colloquium on the "New Strate­ seized by Iran in 1971. gic Debate" in late September in Paris that negotiations between the founders of the • THE UNITED NATIONS Secu­ French-German Eurocorps and the NATO rity Council impounded most of Belgium debates Supreme Allied Command, Europe Iraq's oil-related assets on Oct. 2, the partition scheme (Saceur) will begin in December. The Atlan­ firsttime the U;N. has ordered the sei­ tic Council will mediate the talks on what zure of a nation's money. One provi­ The Belgian Parliament is debating a project the Eurocorps could contribute toward al­ sion in the resolution forbids states to create relatively independent regional par­ lied defense. from allowing Iraq to use some of its liaments and governments for both major "What is decisive," stated Ruhe, "is that frozen funds to buy food and medical Belgian regions: Flanders, in the north, the creation of a European defense identity supplies. which is Dutch-speaking, and Wallonia in not be perceived as being in competition the south, which is French-speaking. While with NATO." • BULGARIA is the center of in­ the project is officially to counter the so­ The announcement came amid pressure terest of dirty money launderers, said called "separatist virus," it is in fact fueling on Germany to authorize NATO "out of Bulgarian Foreign Affairs Vice Min­ it. Although approval requires a two-thirds area" (out of Europe), deployments for use ister Valentin Dobrev on Sept. 30 at majority vote, the fact that the Oct. 3 French against the Third World. Ruhe predicted that the First Intemational Conference on daily Le Monde covered the story on its front German military forces could be authorized Laundering Mbney, held at the Coun­ page demonstrates the seriousness of the sit­ by the Parliament to participate in out of area cil of Europe in Strasbourg, France. uation. deployments as early as autumn 1994.

EIR October 16, 1992 International 53 �ITillNational

Austeritywill drive next administration, say elites

by Kathleen Klenetsky

With less than a month to go before the presidential elections, supports, veterans' benefits, etc.). it is becoming increasingly apparent that the U. S. policy elite Rudman, in tum, is collab�rating with former Democrat­ has chosen to respond to the country's economic collapse ic presidential candidate Paul tsongas, Washington attorney with a regimen of austerity measures lifted straight from Lloyd Cutler, and Council on Foreign Relations Chairman Adolf Hitler's financemini ster, Hjalmar Schacht. Peter Petersen on an initiative Icalled the Concord Coalition, It is also becoming increasingly apparent that, unless the whose purpose is to propagandize the electorate on the need U . S. electorate decides to elect a President who is willing for deep cuts in entitlement programs. And Ross Perot has to buck the establishment, throw out the current bankrupt stated flatout that the main re�on he got back into the presi­ financialsyst em, and restore the "American System" of eco­ dential race is to force the issue of the deficitto the top of the nomics that made the United States the world's economic electoral agenda. powerhouse, they will soon find themselves subject to a ' ' 1990s version of the Nazis' "final solution." The Sabotaging Ameri�a commission Over the past few months, the think-tank circuit has been These various elements in; the austerity lobby have now churning out one study after another positing the same tired converged on a new study, which is being hailed far and wide theme: Solving the depression depends first and foremost as the "painful solution" to America's economic crisis. Since on reducing the federal budget deficit, which can only be its release on Sept. 30, the study has been given widespread accomplished by the wholesale gouging of social spending favorable media coverage, typical of which was columnist programs. George Will's paean in the Oct. 4 Washington Post. It's "a But this slash-and-burn mania hasn't been limited to the breathtakingproposal ," wrote Will, because it focuses on the "inside the Washington beltway" policy factories. Although "core dilemma": "The population is aging, and the elderly most elected officials still shy away, at least publicly, from arethe disproportionateconsumers of transfer payments, par­ embracing deep cuts in Medicare and the other principal ticularly pensions and medical! care." austerity measures that are being promoted, a political "aus­ Produced by the "Stren�ening of America Commis­ terity vanguard" is on the march, with its sights set on de­ sion," a project of the influentialWashington think-tank, the termining economic policy for the next administration. Center for Strategic and International Studies (CSIS), the In Congress, for instance, a group of senators that report t;ecommends slashing f'bderal deficit spending by an includes Budget Committee ranking member Pete Domeni­ astounding $2 trillion over the ,next 10 years, via a combina­ ci (R-N.M.), Bill Clinton adviser Sam Nunn (D-Ga.), tion of vast tax hikes and huge cuts in social spending, so as and Warren Rudman (R-N.H.), has been holding regular to balance the budget by the year 2002. strategy sessions on how to ram through a cap on entitle­ The reporthas been in the works since early 1991, when ment programs (Social Security, Medicare, farm price the CSIS established a bipartisan panel composed of repre-

54 National EIR October 16, 1992 sentatives from government, the business and investment philosopher Thomas Hobbes. communities, labor, and a few of the better-known policy • Spending an additional $100 bjllion on infrastructure. "wonks," with a mandate for cooking up recommendations • Reducing defense spending from 20% of the federal on how to improve the United States' economic performance, budget to 13%. with an emphasis on making the country more competitive • Creating a National Economic Council, headed by a in the international arena. national economic adviser, on a lev�l co-equal with the Na­ Co-chaired by Senators Nunn and Domenici, the com­ tional Security Council and the national security adviser. mission's members include Sen. WarrenRudman; Dwayne Andreas of Archer Daniels Midland; former Carter ambassa­ Recipe for disaster dor Richard Gardner, an adviser to Bill Clinton and a propo­ Not only does the CSIS study mimic the budget-slashing nent of letting the International Monetary Fund (IMF) extend approach employed by the IMF in ,its treatment of devel­ its surveillance activities to the U.S. economy; Joshua Led­ oping-sector countries, it will have the same disastrous ef­ erberg, president emeritus, Rockefeller University; Trilater­ fect. Every country that has been subjected to IMF condition­ aloid John Sawhill, president of the Nature Conservancy; alities and "structural adjustment" policies has ended up in Bush supporter and former Treasury Secretary William Si­ far worse condition; it may be able to scrounge the payments mon; and former Defense Secretary James Schlesinger. on its foreign debt a little faster-at least temporarily-but Although the report calls for more investment in research at the cost of destroying its labor force and, thus, its future and development, proposing specifically to create a $160 economic potential. billion Endowment for the Future through increased federal The CSIS study exemplifies th� lunacy of the budget­ investment in education, children, research and development cutting approach to economic crises, which independent and technology (this averages out to a paltry $16 billion a presidential candidate Lyndon H. LIlRouche has repeatedly year), and creating a network of high-speed rail transport, its warned against. Attempting to budg�t-cut your way out of a focus is on how to drive down Americans' "consumption" depression leads to disaster, LaRollche has stressed, since (i.e., living standards) sufficientlyto balance the budget, or, all it leads to is loss of jobs, shut�owns of business, and in other words, pay offdebt . plummeting tax revenues, demanding even further cuts, in With debt repayment as its driving concern, it should an endless downward spiral. hardly be surprising that the CSIS report would treat the The solution is to overhaul the U.S. economic and finan­ United States like a Third World debtor nation, or that its cial system, getting rid of the speculation and usury which recommendations bear a remarkable resemblance to those have sucked the economy dry , and restoring the American suggested by IMF Managing Director Michel Camdessus on System of economics of Alexander l:Iamilton and Henry Car­ Sept. 9, when he demanded that the United States hike taxes ey, which places the production of ;real wealth at the center and reduce spending to bring down the deficit. of economic activity. The study's principal proposals include the following: • Reducing federal spending by 8%, which translates Shaping the agenda into $1.5 trillion. The report states that a "critical part of this The CSIS commission states flat-outthat it intends to shape effort" will be to slap a ceiling on entitlement expenditures, the policies of the next administration. "We are releasing our with Medicare and Medicaid special targets. The report ex­ firstreport now, in theheat of the political season, because we empts Social Security, but, since slashing Medicare will send hope that it will influence the polillical debate in the weeks the death rate among the elderly soaring, Social Security ahead," by helping to "shift focus to the important, long-term spending will be cut. issues which confrontthe nati on," thf report asserts. • Launching an "unprecedented determination to imple­ While they may differ on details, neither George Bush, ment cost control" over the entire U.S. health care system. Bill Clinton, nor Ross Perot among the presidential candi­ The report stresses that "comprehensive health care reform dates has exhibited any principlqd objections to such a will not be complete without a social consensus on care for program. the terminally ill," and sternly points out: "Approximately In fact, although Perot's platform comes closest to the 30% of total Medicare dollars are spent on patients in the last CSIS recommendations, Bush and Clinton have already em­ yearof their lives." In other words, the elderly and terminally braced some key policies set forth iJilthe study. Bush recently ill must be hurried to their graves, so as to reduce the budget agreed to capping Medicare and ot�er entitlement programs, deficit. while Clinton urges drastic spending reduction in health care. • Hiking taxes by $376 billion. The day before the CSIS report came out, Clinton's top eco­ • Abolishing the current income tax system in favor of nomic policy adviser, Wall Stree� banker Felix Rohatyn, a "consumption-based income tax system," which will penal­ called for the next President to cr�ate a bipartisan National ize spending, including spending on such essentials as health Economic Commission to force through the "hard choices" care. The study traces this proposal back to the bestial British needed to reduce the deficit.

EIR October 16, 1992 National 55 ist Lawrence Guyot, who wQrked with the Student Non­ violent Coordinating Committee Mississippi Voters Project; Jerry Brentar, an activist from Ohio who is demandingjus tice D.C. rallies led by Bevel for Cleveland auto worker John Demjanjuk (who faces hang­ ing in Israel for alleged Nazi war crimes after a Soviet-rigged frameup); and a member of the Peace and Justice Committee have powerful impact ' of the Catholic Church. Speakers addressed the throngs of tourists and federal by Patricia Salisbury employees near the Supreme ,Court building. Around 150 people, some of whom had traveled fromAlabama , Tennes­ An unprecentedcoalition of civil rights activists and other politi­ see, Ohio, Pennsylvania, and New Jersey, marched in a pick­ cal forces held rallies in Washington, D.C. on Oct. 7, signaling et line, challenging the court, '�If you'regoing to kill people, that a movement potentially larger and more powerful than the put on your hood and robe"-_ reference to the fact that the 1960s civil rights movement is beingbuilt in the United States. court is meting out "justice" no different from the terrorist The actions--which broughttogether fabled leaders of the civil Ku Klux Klan, who hide un(Ier white sheets and hoods. rights era such as the Rev . James Bevel, Amelia Boynton Rob­ During the rally, nine figures�ss ed in hoods and robes and inson, and Hosea Williams, with spokesmen from the Nation representing the nine Supreme I Court justices strode through of Islam, former Washington mayor Marion Barry, and presi­ the crowd. Civil rights leader fIoseaWillia ms told the rally dential campaign organizers for Lyndon LaRouche-began at that the currentcourt behaves no differently than the Klan in the U.S. Supreme Court building. Georgia and throughout the South. The courtwas scheduled to hear the case of Leonel Herre­ ra, in which the court will decide whether it violates the Pike statue must come down! constitutional prohibition of cruel and unusual punishment Later that day most of the demonstrators and many of the and guarantees of due process to execute a person, such as speakers assembled for a secohd rally at the site of a statue Herrera, who has been convicted of a murder but may be of Albert Pike, a Confederate general who became a KKK innocent. founder and chief organizer of Klan terrorism against blacks Demonstrators numbering around 150 rallied to demand in the late 18oos. The demonstrators demanded that this ob­ that the death penalty be abolished in the United States. scene 50-feet-high, bronze cast monument to brutality and Speakers joined in denouncing the death penalty from a vari­ injustice, which is designated ia national monument by the ety of perspectives. James Bevel, the running mate of jailed U.S. Congress, be tom down immediately. They explained presidential candidate Lyndon LaRouche and former direct to astonished onlookers that tHe statue is maintained at tax­ action coordinator for Martin Luther King, stated that "life payer expense by the Department of Labor in the middle of is an inalienable right, not a privilege." He told the crowd that the District, which has a predominantlY'black popUlation. judicial murder to establish the principle of revenge makes Erected (and still protected) by the Scottish Rite of Free­ society barbaric and encourages violent crime. Michael 3 X, masonry, which helped Pike infounding the Klan, the statue speaking for the Nation of Islam-Howard University branch, remains despite demands to the relevant governmentagencies warnedwhite Americans that the death penalty is a hypocriti­ and challenges to both the BU$h and Clinton campaigns to cal cover for killing young African-Americans and chal­ demolish it. How long it will st*nd remains to be seen. While lenged citizens favoring the death penalty on religious the demonstrators renewed ch$ts of "put on your hood and grounds to realize that one who believes that God favors the robe" and "Albert Pike take a hike," two of them used moun­ death penalty had better consider whom a just God would tain climbing gear to scale the statue and garb its obese figure wreak vengeance upon: surely not the victims of an unjust in a full-scale hood and robe� When D.C. police moved society but rather the organizers of the crimes of that society, against the two, the crowd clolied ranks and they were lost "Dope, Inc." and its associated banks and political figures. from sight. These events were 'videotaped by camera crews Former Mayor Barry vowed to build a coalition to defeat for the LaRouche-Bevel presidentialcampai gn, which has an­ the referen�um reestablishing the death penalty in the District nounced plans to air the footage-and LaRouche's demand of Columbia which Congress has decreed be put on the Nov. that the statue come down--onla half-hour television broad­ 3 ballot. Juanita Kennedy Morgan, who chairs the National cast in October. The Oct. 26 isSue of The Final Call, the Na­ Black Women's Political Leadership Caucus, criticized Sen. tion of Islam newspaper, quotes Bevel's demand that the stat­ Richard Shelby (D-Ala.) for initiating the death penalty refer­ ue come down by Oct. 23, the aimiversary of its erection. endum only after his white aide was murdered despite the The issue has become so hot that the rally at the statue high number of blacks murdered in the district. She pointed was covered in much of the majC!'rWashington media, includ­ to the disproportionate statistics of young African-American ing the Washingtion Times, WllJhington Post, the local ABC men on death row . Other speakers included: civil rights activ- television affiliate, and CNN.

56 National EIR October 16, 1992 in January, another $1 billion in April; and $2.5 billion in May. Another $1 billion in notes is also due in April. The question no one wants to answer is, wpere will the money

come from? I; Bankrupt states turn A recent private forecast projected the loss of 30,000 more jobs in California's already devast*ted aerospace sector to short-term loans over the next year, and the eliminati<;ln of 37,000 public employees through budget cuts by nextjJune. Then, on Oct. 6, the Commission on State Finance projected that cuts in by H. Graham Lowry federal defense spending, which cost California 180,000 jobs in the last two years, will elimina1e 60,000 more aero­ With no economic upturnin sight, the major industrial states space workers by 1994. Outright shutdowns and cutbacks at of the United States are increasingly resorting to massive U.S. military bases in California are pk"ojected to eliminate short-term borrowing to sustain budget outlays that have al­ 21,000 civilian workers as well. Californiais already suffer­ ready been drastically cut back. Over the next three to nine ing its highest unemployment rate sinte the Great Depres­ months, billions of dollars in short-term notes will come due, sion, with nearly 1.5 million workers officiallyunemployed . plunging state governments into fiscal crises which could The state's construction industry bontinues its biggest lead to complete breakdowns. plunge since World War II. Constructibn loans fell again in In a single two-week period beginning late September, August by 4.2% from July, and are down more than 75% the money markets were flooded by $7.5 billion in short­ from their August 1989 level. Against August of a year ago, term notes from just four states, led by a staggering $5 billion such loans have declined by more than 52% in Los Angeles, sale by depression-wracked California. Generally priced to nearly 54% in San Diego, and almost 41% in Orange Coun­ yield a tax-free return of between 3.1 % and 3.5%, the notes ty. The number of California's construction workers has were grabbed up on Wall Street as a lucrative alternative to dropped by 190,000 over the last two years. taxable Treasury bills yielding barely 3%. The state budget cuts for the current fiscal year are The California sale of short-term revenue anticipation beginning to reduce local payrolls as well, further collapsing notes was the largest tax -exempt note offering ever recorded, the revenue base. Education cuts hav� leftthe Los Angeles and came barely one month after adoption of a $10.7 billion school system with a $400 million deficit, and its Board of budget cut. Pennsylvania-which lost nearly a third of its Education adopted a budget Oct. 2 that eliminates 1,334 blue-collar work force during the 1980s and placed the bank­ jobs and slashes the payroll for remaining employees by rupt city of Philadelphia under receivership last year-had $178 million. Most of the district's teachers face a pay cut ' to raise $600 million in nine-month tax anticipation notes of 12%. Sept. 22. The next day, New Jersey floated $1.6 billion in short-term notes. Two weeks later, the state laid off 1,500 Legislature mired in failed policies public employees and transferred thousands more into lower In the face of this economic disaster,Calif ornia's legisla­ pay classifications. Illinois, which earlier this year imposed tive leaders have declared it a crisis� but have offered no emergency budget cuts of over $300 million, had to tum to solutions beyond the usual fatal remedies. Assembly Demo­ short-term borrowing for another $300 million at the end of crats released a 125-page report Oct. 6 entitled "Toward an September. New unemployment claims shot up 16.7% the ADEPT California," with the clumsy acronym standing for next week. Assembly Democratic Economic Pro$perity Team. Echoing most of the absurdities in Washingtoh, the report urges tax California: looming disaster breaks for multinational corporations ,which expand in Cali­ This desperate resort to a short-term fix may push some fornia, a reduction in the capital gains tax, making businesses major governmentbreakdowns past the November elections in the state more "cost-competitive,":reducing school drop­ and irito next year, but current economic policies will only out rates, and improving vocational trtaining. continue to flatten the revenue base needed to pay off the It points to the need for greater investment in transporta­ notes. tion, water, and other infrastructure! projects, but doesn't The most dramatic proof is the case of California. State address the massive flowof low-interest, federal credit which revenue collections have fallen by $25 billion in the last two would be needed to carry that out. State Treasurer Brown years. State Treasurer Kathleen Brown expects a further is calling for a "comprehensive ecOnomic plan" to attract shortfall of up to $2 billion by next June-an extremely industries to California, but doesn't identify what ruined so modest estimate, given the current rate of collapse of the many of the ones it had. Instead, stie says, "we should be Californiaeconomy . Yet on the $4 billion in fixed-rate notes hustling. We have a lot of hustling to do." Especially when in California's $5 billion sale, $500 million will come due all those short-term notes come due. '

EIR October 16, 1992 National 57 ber of the Smith family." The indictment alleges a three­ month plot between Moore, Smith, Kelly, Point, and others in which they conspired and plannedthe kidnaping ofLewis du Grandjury indicts Pont Smith and his wife. An IlITIlignment wasset for Oct. 13. The magistrate held a 4tention hearing for Kelly. The 'Get LaRouche' government argued that Kelly should be held without bond because he is a violent threait to the community and poses a risk of flight. They presented evidence that on the day of their kidnaping ring arrest, Kelly was in Moore's house in Virginia where they were plotting a new kidnaping plan to overpower Lewis du One hour before a scheduled preliminary hearing on Oct. 6, Pont Smith with a motorcycle gang which would violently a federal grand jury in Alexandria, Virginia handed down an kidnap him in a "paramilit� operation." The magistrate indictment for conspiracy to kidnap against Donald L. said that it appearedfrom th� indictment that Moore was the Moore, Edgar Newbold Smith, Galen Kelly, and Robert main ringleader, and that Kelly should be let out on the same Point. The indictment also contains a second count of solici­ conditions as Moore. tation for kidnaping against Moore. Galen Kelly's lawyer pr¢sented the magistrate with let­ The four are charged with plotting to kidnap Lewis du ters attesting to his upstanding character. One letter was from Pont Smith, a 36-year-old man who is an heir to the du Pont Herbert Rosedale, the founderof the American Family Foun­ chemical fortune, as well as his wife Andrea Diano Smith, dation and the Cult Awareness Network, and a funder of the , and to spirit them to an offshore yacht belonging to Newbold ADL-the private institutioqs at the heart of the conspiracy Smith, his father. There, the two were to be drugged and to silence LaRouche. Rosedale wrote that he had known forcibly "deprogrammed" to break their loyalty to the ideas Kelly for 10 years. Rosedale; was present at a Paris meeting and policies of Lyndon LaRouche. The grand jury action in May 1990, with Cynthia �isser, the executive director of obviated the need for a preliminary hearing. Present in the CAN, where further actions against the LaRouche movement courtroom were John Markham, representing E. Newbold were designed. Smith; Mira Boland of the Anti-Defamation League (ADL), ; who sat next to Don Moore and his wife; and many reporters. Lewis du Pont Smith qps media Not present was Don Moore's lawyer, Mark Rasch. On Oct. 5, Lewis du Pqnt Smith released a comment which reads, in part, "I believe that, as a citizen of the United History of lawlessness States, I have the right, protected under the First Amend­ The accused (Moore, Kelly, Smith) and their lawyers ment, to politically associat4 with and financially support (Markham and Rasch) and helpers (Boland) are the guts of the causes that I believe in. "Get LaRouche" concert of action. Markham and Rasch were "The criminal charges which were brought against my the prosecutors in the notorious 1988 railroad trial of father and three other individ1.lalsby the U. S. governmentin LaRouche and six associates. Moore, fired earlier this year the Eastern District of Virgin� are veryseri ous. as a sheriff's lieutenant in Loudoun County, Virginia, had "The media generally have portrayed these events-the boasted that he "led" the 1986 raid against LaRouche's resi­ arrests, the government's cri�inal complaint, and legal pro­ dence and LaRouche-affiliated companies-a raid intended ceedings-as a family soap-opera-like feud between myself to result in LaRouche's death . Kelly claims to be a "depro­ and my father. The issue is not,between my father and myself. grammer" of religious cult members . Boland is a key opera­ "The real issue, which the governmentmakes clearin its tive for the powerful, tax-exempt, organized-crime front criminal complaint and which is revealed elsewhere by the known as the ADL, with an inside track in all the prosecutions government's chief informan�, is that there is a national kid­ of the LaRouche movement. All of these people work with naping-for-hire criminal ring, the Cult Awareness Network the Cult Awareness Network (CAN), which uses slander and (CAN), of which my father, Galen Kelly, Don Moore, and intimidation to keep LaRouche supporters from giving money others who oppose presidential candidate Lyndon LaRouche to the political cause of their choice. The indictments suggest are apart. CAN is willing to go even further to suppress democracy. "I am shocked, but not at all surprised, that my wife and I were the targets of the Cult Awareness Network and its Violent crime was planned alleged plot to kidnap, torture, and use drug-induced mind According to the indictment, it is alleged that on June 26, control techniques to break oUf wills. 1992, Moore went to the residence of Doug Poppa, also a "I am relieved that federal law enforcement agencies and former Loudoun sheriff's deputy, to recruit him to assist the U.S. Departmentof Justicq arefina lly beginning to round Moore, Smith, Kelly, Point, and others whom "Moore de­ up the alleged perpetrators of this alleged criminal kidnaping scribed as Green Beret and CIA types, in kidnaping of a mem- thought-police ring."

58 National EIR October 16, 1992 naping plans with Edgar Newbold Smith prior to proceeding Documentation to New Jersey where Moore planned to meet and discuss the kidnaping with Robert Point. 3. On or about Sept. 15, 1992, in the Eastern District of Virginia, coconspirator Donald Moore traveled from Lou­ u. s. complaint targets doun County, Virginia to the home ' of Edgar Newbold LaRouche persecutors Smith in Pennsylvania as the first leg in a trip to the law office of coconspirator Robert Point In New Jersey for the purpose of meeting with coconspirators Robert Point and The fo llowing complaint was filed with the United States Galen Kelly to discuss the plans to kidnap Lewis du Pont District Court, Eastern District of Virginia on Sept. 30, Smith and Andrea Diano Smith. 1992, in Alexandria, Virginia. All in violation of Title 18, United States Code, Section 1201(c). United States of America v. Donald Moore Affidavit Galen Kelly Your affiant, Scott Salter, is presently employed as a Edgar Newbold Smith Special Agent (SA) for the Federal Bureau of Investigation Robert Point (FBI) and has been so employed for three years. Your affi­ ant's official duty station is at Washington, D.C. and your Criminal Complaint affianthas been assigned the investigations of violent crimes Case Number: 92-1 250M including violations of Title 18 of the United States Code, Sections 1201 (kidnaping). I, the undersigned complainant being duly sworn state On June 29, 1992, your affiant w� advised by SA Scott the following is true and correctto the best of my knowledge Sutherland of the FBI that an individual described as an and belief. ... FBI Cooperating Witness (CW) advis¢d SA Sutherland that Scott Salter Special Agent Federal Bureau of Investi­ Donald L. Moore, Jr., is involved in a plan to abduct an gation individual in order to "deprogram" hijnof the influence of a ...From on or about June, 1992 through on or about "cult." Moore told the CW that the individual to be abducted the present time, in the Eastern District of Virginia and else­ is a member of the du Pont family and that the individual where, the defendants, Donald Moore, Galen Kelly, Edgar lives in the Philadelphia, Pennsylvania area. Moore told the Newbold Smith and Robert Point, did willfully, knowingly CW that he and others involved in the plan are associated and unlawfully combine, conspire, confederate and agree with a group called the Cult Awareness Network. They plan with each other to willfully, knowingly and unlawfully seize, to use a female to lure Lewis du Pont Smith to a hotel room confine, inveigle, decoy , kidnap, abduct and carry away, in where he will be given a drink containing a sedative which the special maritime and territorial jurisdiction of the United will render Smith unconscious. Once unconscious, the plan States, two adult persons, to wit: Lewis du Pont Smith and calls for Smith to be taken to a yacht waiting off the United Andrea Diano Smith, in violation of Title 18, United States States Coast where he will be held until he is "depro­ Code, Section 1201(a)(2). grammed." Moore told the CW that he planned to travel to Philadelphia on or about June 29, 1992 in order to meet with Overt Acts another involved individual and further discuss the plan. In furtherance of the conspiracy, and to effectthe objects On July 2, 1992, your affiantwas advised by SA Suther­ thereof, the defendants committed diverse overt acts in the land that the CW met with Moore following Moore's trip Eastern Districtof Virginia and elsewhere, including but not to Philadelphia. Moore told the CW that in Philadelphia he limited to , the following: met with Galen Kelly and the two discussed plans to abduct 1. On or about July 7, 1992, in the Eastern District of Lewis du Pont Smith. Moore advised that Lewis du Pont Virginia, coconspirator Donald Moore traveled from Lou­ Smith is the son of Edgar Newbold Smith and that the doun County, Virginia to the home of coconspirator Edgar planned abduction and deprogramming is sponsored by Ed· Newbold Smith in Radnor, Pennsylvania for the purpose of gar Newbold Smith. Moore reiterated to the CW that the acquiring intelligence information on the day-to-day activi­ plan calls for Lewis du Pont Smith to be lured to a hotel ties of Lewis du Pont Smith and Andrea Diano Smith. room by a female where he will be given a sedative to render 2. On or about Aug. 18, 1992, in the Eastern District of him unconscious. The plan calls for Lewis du Pont Smith Virginia, coconspirator Donald Moore traveled from Lou­ to be taken to a yacht owned by Edgar Newbold Smith doun County, Virginia to the home of Edgar Newbold waiting 60 miles offthe United States Coast where he will Smith for the purpose of meeting and discussing the kid- be deprogrammed. Moore told the CW that he and Kelly are

EIR October 16, 1992 National 59 Left : "Deppity Dawg" Donald Moore leaves the fe deral courthouse in Alexandria, Virginia after his LnI1�lrr,ml',nron kidnaping charges on Oct. 6. Included in the cheering sectionfor him and the other alleged conspirators were: (center) John Markham, representing E. Newbold Smith. Markham was one of the prosecutors in theframeup conviction of Lyndon LaRouche 989. (Right) Mira LanskyBoland of the Anti-Defa mation League, a top operative of the "Get LaRouche" taskforce.

concerned as to what to do about Lewis du Pont Smith's The CW agreed to travel w Moore. wife after he is abducted. Moore then explained to the CW On July 7, 1992, the affi was advised by the CW that that Moore and Kelly are considering abducting Lewis du Moore was scheduled to ' the CW up in Moore's vehicle Pont Smith's wife prior to abducting Smith. and that they would travel to Philadelphia area on July 7, On June 30, 1992, the affiantwas advised by SA Michael 1992 at approximately 8:00 .m. On that date, at approxi- Reith of the FBI's Wilmington, Delaware Resident Agency, mately 8:15 a.m., in I County (which I know to be that Lewis du Pont Smith, a 36-year-old male is the son of in the Eastern District of ia), FBI agents observed the Edgar Newbold Smith and Margaret Smith. Lewis du CW enter a 1980 Oldsmobile bearing Virginia license Pont Smith was identifiedas residing in Philadelphia, Penn­ tag JQF-445, registered to D�nald L. Moore, Jr., and travel sylvania with his wife Andrea Diano Smith. SA Reith ad� from Loudoun County, Virgi , ia to 871 Leslie Road, Radnor, vised that in the past several years Lewis du Pont Smith Pennsylvania, a residence the CW later identifiedas the home had been involved in civil litigation against his parents in of Edgar Newbold Smith. On July 8, 1992, SA Daniel Philadelphia, Pennsylvania over control of Lewis du Pont Murphy of the FBI's Philade phia Field Officeadv ised your Smith's trust fu nd. affiant that telephone subscr"ber information identified 871 On July 6, 1992, your affiant was advised by the CW that Leslie Road, Radnor, Pennsylvania as the home of Edgar Moore planned to travel to Philadelphia on July 7, 1992 and Newbold Smith. remain in that area until July 10, 1992. Moore invited the On July 8, 1992, FBI a ents in Philadelphia observed 1 CW to go with him on the trip and assist Moore in conducting Moore and the CW apparen ly surveilling Lewis du Pont surveillance of Lewis du Pont Smith in order to determine Smith in Philadelphia and at Lewis du Pont Smith's place Smith's daily routine and further devise the abduction plan. of employment in Upper Dar y, Pennsylvania.

60 National EIR October 16, 1992 On July 10, 1992, the affiantwas advised by SA Gregory bluntly referring to the operation as a "kidnaping." Auld of the FBI's Philadelphia Field Office that he inter­ On Aug. 17, 1992, Moore told the CW that they are to viewed the CW on July 9, 1992. The CW advised that, travel to Radnor, Pennsylvania on Aug. 18, 1992 to meet prior to departing Leesburg, Virginia, Moore paid the CW with Edgar Newbold Smith at his residence. M�re also $400.00 for the upcoming four days work in Philadelphia. stated that they would travel to South Amboy, New Jersey The CW advised that at Moore's direction, the CW and on Aug. 19, 1992, in order to meet with Robert Point and Moore surveilled Lewis du Pont Smith on July 8, 1992 perhaps Galen Kelly. M�ore described Point as a lawyer in order to determine Smith's daily routine. They located and a friend of Galen Kelly. Moore told the CW that the Smith's vehicle at his place of employment in Upper Darby, purpose of the trip is to discuss the plans to abduct Lewis du Pennsylvania and observed Smith enter a restaurant after Pont Smith. work on July 8, 1992. Moore instructed the CW to conduct The CW has advised me of the following. On Aug. 19, the same type of surveillance of Smith on July 9, 1992 (the 1992, at the direction ofDonald Moore, the CW and Moore CW instead traveled to the FBI Office inNew Town Square , traveled from Loudoun County, Virginia to the home of Ed­ Pennsylvania). The CW advised SA Auld that he and Moore gar Newbold Smith. On that date, Smith, Moore, and the are staying at the home of Edgar Newbold Smith while CW discussed the plan to kidnap and deprogram Lewis du Edgar Newbold Smith is staying in Maine. On July 9, 1992, Pont Smith. Edgar Newbold Smith called his residence and spoke with The CW has advised me of the following. On Aug. 19, Moore. The CW was present and heard Moore tell Edgar 1992, the CW and Moore traveled from Radnor, Pennsly­ Newbold Smith that they had conducted surveillance of vania to 111 North Broadway Street, South Amboy, New Lewis du Pont Smith. . . . Jersey, the law office of Robert Point. While in Point's On July 10, 1992, your affiant was advised that on July office Moore, Point, and the CW discussed the plan to ab­ 10, 1992, monitoring agents in Philadelphia overheard an duct Lewis du Pont Smith and Point discussed other abduc­ incoming call received by Donald Moore (who was at tele­ tions and deprogrammings in which he and Galen Kelly phone number 215-688-7664) from Edgar Newbold Smith have participated. Moore and Point openly discussed the (who was at telephone number 207-276-3765). During the abduction of a woman in New York City which occurred in call the two mentioned Galen Kelly twice, indicating that September 1991. Point stated that that operation went badly they needed Kelly's guidance. Moore told Edgar Newbold largely because it was handled poorly by Tony Russo, a Smith about a surveillance of Lewis du Pont Smith conduct­ police officer who was put in charge of the actual abduction. ed by Moore at his place of employment. . . . They also discussed an abduction which occurred in Wash­ On July 15, 1992, Edgar Newbold Smith placed a call ington' D.C. and which also went badly. They described that from telephone number 215-688-7664 to Donald Moore at abduction as a situation in which they mistakenly abducted telephone number 703-822-5580. The call was intercepted the wrong woman. Point told Moore and the CW that he and and monitored by FBI agents in Philadelphia and in Washing­ Galen Kelly are in the process of planning the abduction of ton, D.C. During this conversation Moore and Smith dis­ an individual who is involved with a "cult" in New York cussed the plot to abduct Lewis du Pont Smith. They agreed City. Point stated that he has maintained contact with the that the plan for the abduction could not be finalized until individuals who want that person . abducted and depro­ they speak with Galen Kelly. Moore and Smith assured grammed. During the conversation Point directed his secre­ each other that their telephones are "safe" and then Smith tary to bring the file on that case and she delivered a folder told Moore that one problem they will have after Lewis du to Point (which the CW believes contained information on Pont Smith is "lifted" is that Lewis du Pont Smith's wife that planned abudction). will bring a great deal of attention to the disappearance of The affiant is aware that Galen Kelly is the subject of her husband. They tentatively agreed that it is preferable to an ongoing investigation being conducted by FBI agents in "lift"Lewis du Pont Smith without taking his wife, however Washington, D.C. concerning the abduction of a female, Moore stated that Galen Kelly would be the best person to hereinafter Jane Doe, in Washington, D.C. on or about May ask, and he speculated that if the wife were taken she could 5, 1992. In that case, Jane Doe was the roommate of a woman be "turned" also. whose mother has persistently encouraged her (i.e., Jane During the course of this investigation the CW main­ Doe's roommate) to leave the homosexual relationship in tained contact with Donald Moore. through in-person con­ which she now lives with Jane Doe and another female room­ tacts and through telephone conversations. The CW consen­ mate. Jane Doe advised that she was forcibly abducted by sually recorded in-person contacts when possible and all two men and two women as she left work in the early morning telephone conversations were recorded by the CW. Your hours in Washington, D.C. on May 5, 1992, and taken in a affiant has listened to all tapes made by the CW. During a van to an unknown location, believed by Jane Doe to be in conversation between Moore and the CW on Aug. 11, 1992, Virginia. While being transported, Jane Doe asked one of Moore discussed the plan to abduct Lewis du Pont Smith, her abductors his name; he replied "Galen Kelly." Eventually

EIR October 16, 1992 National 61 the van stopped and an older woman entered and told the filewhich contains the namesand telephone numbers of other abductors that the victim was not "my daughter." Jane Doe persons who participate in kidnaping plans. SA Flosnik pro­ was transported back to Washington, D.C. and released; as vided the CW with an electronic transmitter device and in­ her abductors left, they threw Jane Doe's thermos (which she structed the CW to utilize the transmitter during the Sept. 16, had been carrying) out of the van. The thermos was provided 1992 meeting in South Amboy, New Jersey. to the FBI and subsequent analysis identified a latent finger­ Later on Sept. 15, 1992, the CW telephonically contacted print on the thermos as belonging to Galen Kelly. An analy­ your affiant and advised that the CW and Moore departed sis of telephone toll records showed that the mother of Jane Leesburg, Virginia (which I know to be in Loudoun County Doe's roommate (the intended victim's mother) placed calls in the Eastern District of Virginia) at approximately 2:00 to the Cult Awareness Network in Chicago in the three p.m. on Sept. 15, 1992 and traveled to 871 Leslie Road, months prior to the May 5, 1992 abduction. Radnor, Pennsylvania, arriving at approximately 6:00 p.m. On Aug. 25, 1992, the CW advised your affiant that The CW stated that they would travel to South Amboy, New during the return trip from South Amboy, New Jersey, Jersey on the morningof Sept. 16, 1992. Moore told the CW the specific details of the May 5, 1992 On Sept. 16, 1992, your affiantwas advised by SA An­ abduction in Washington, D.C. Moore told the CW that dreas Stephen of the FBP s Newark Field Office that at he (Moore) had done the surveillance and planning for the approximately 1:00 p.m. on Sept. 16, 1992, FBI agents in abduction. He provided Galen Kelly with the information as South Amboy observed the CW and another individual, who to where the target of the abduction could be found and he fit the description of Donald Moore, enter the office at III provided photographs of the intended victim. Moore ex­ North Broadway Street, South Amboy, New Jersey. The plained that the woman who was abducted had cut her hair agents also monitored the CW's electronic transmitter and and was driving the intended victim's vehicle which resulted overheard the CW in conversation. in Kelly and the three other participants abducting the wrong On Sept. 16, 1992, at approximately 7:45 p.m. the CW woman. Moore explained that while Kelly and the other telephonically advised your affiant that on Sept. 16, 1992 at three abductors went to commit the actual abduction, he approximately 1:00 p.m. he met with Moore, Kelly, and waited in the parking lot of a hotel in Leesburg, Virginia Point at III North Broadway Street, South Amboy, New with the mother of the intended victim. Kelly and the others Jersey. During the meeting the four discussed the planned brought the woman to that location and the mother stated that abduction of Lewis du Pont Smith. The CW stated that the woman they brought was not her daughter. Moore then Moore, Kelly and Point discussed several options available showed the CW a photograph of the two white females. to abduct Lewis du Pont Smith which included using force Moore explained that one of the women in the photograph and violence. The CW advised that the meeting concluded was the woman they intended to kidnap and the other woman at approximately 5:15 p.m. is the one they actually abducted. On Sept. 17, 1992, your affiantwas advised by SA Ron­ The affiant was advised by SA Richard Fanelli of the ald Butkowitz of the FBI's Newark Field Office that he and FBI's New York Office that Galen Kelly, Anthony Russo other FBI agents observed Donald Moore's vehicle arrive and others are the subjects of an investigation regarding the in the vicinity of III North Broadway, South Amboy, New kidnaping of an adult woman in New York City in Septem­ Jersey at approximately 1:00 p.m. on Sept. 16, 1992. The ber, 1991. In that case an adult woman was abducted from agents monitored the CW'S electronic transmitter and over­ her home in New York and taken to Pennsylvania and later heard four individuals in conversation, which lasted until to New Jersey. The abduction was sponsored by the woman's approximately 5:10 p.m. parents who wished to have their daughter "deprogrammed" Based on the above factS and circumstances, the affiant of the influenceof her boyfriend with whom she resided. The believes probable cause existS to believe that Donald Moore, "deprogramming" was not successful and the woman was Galen Kelly, Robert Point, and Edgar Newbold Smith eventually released .. .. have violated Title 18, United States Code, Section 1201(c) On Sept. 15, 1992, your affiant was advised by SA in that they have conspired tei> kidnap Lewis du Pont Smith Thomas Flosnik of the FBI's Washington Metropolitan and Andrea Diano Smith, and that, in furtherance thereof, Field Office that the CW provided information on Sept. 15, the defendants have committed overt acts in the EasternDis­ 1992 regarding items located within Moore's vehicle. The trict of Virginia, including the travel by Donald Moore from CW stated that within Moore's Oldsmobile, which bears the Eastern District of Virginia (which I know to be the Virginia license tag JQF-445, are papers and photographs judicial district encompassing Leesburg and Loudoun Coun­ pertaining to the abduction of the woman in Washington, ty, Virginia) to Pennsylvania on July 7, 1992 and to New D.C., on May 5, 1992, including pictures taken of the intend­ Jersey on Aug. 18, 1992 and Sept. 15, 1992, respectively. ed victim, papers and photographs pertaining to Lewis du Pont Smith, including pictures of his home, place of busi­ Scott Salter, Special Agent Federal Bureau of Investi­ ness, and pictures of him with his wife; and a Rolodex card gation

62 National EIR October 16, 1992 years in jail, say to the world? How do you face it?" He Wo rldwide Outrage replied that he could have gone free if he had been willing to sell his soul and accept a plea-bargai I deal offered by the government. But that would not have �een true freedom, for it would have been confessing to a crime he didn't commit. A small, noisy rally was held in Mexico City Sept. 25, Billington goes to outside the American embassy. It was led by a "KKK mem­ ber," complete with hood and robe, 'rho was aiming a toy jail facing 77 years axe at passersby-and who symbolized U.S. "j ustice." The newspaper La Voz de Sonora ) in northern Mexico, LaRouche associate and EIR contributor Michael Billington, printed a long letter on Sept. 26 by Ignacio Mondaca of the who reported on Sept. 28 to begin serving a 77-year prison Ibero-American Solidarity Movement (MSI), on the mobili­ sentence for political organizing in the Commonwealth of Vir­ zation to free "a collaborator of the American economist and ginia, has become a cause celebre in cities around the world. political prisoner Lyndon LaRouche. On Monday, Sept. 28, The most dramatic event was his appearance, by speaker Billington will begin serving a 77-year jail sentence." The phone, at a Sept. 25 press conference in Lima, Peru . It was letter denounced the Anti-Defamation League's role in perse­ attended by the country's top newspapers, as well as a Mexi­ cuting LaRouche and his associates, and its collaboration co-based TV station which broadcasts throughout Ibero­ with the former East German Stasi. America. The Peruvian media were especially intrigued by the contrast which Billington drew between the U.S. govern­ European rallies ment's defense of the "human rights" of Shining Path narco­ A day of protest against Billingto 's imprisonment was terrorists, and its persecution of him, Lyndon LaRouche, and held Sept. 28 throughout Europe, but open-air rallies took others for their political activities against the drug trade . place already on Sept. 26 in Denmark and Sweden as well as Billington was also interviewed for a half-hour on La Voz in Munich, the largest city of southernGerma ny. In three big de Bogota, a "drive-time" news show in Colombia's capital French cities-Paris, Lyons, and Strasbourg-the fightwas city, the station's second interview on the LaRouche move­ taken to the private radio stations. ment in two weeks (see Feature). The two journalists inter­ In Copenhagen, a demonstration downtown featured viewing Billington asked how old he was and followed up: picket signs saying, among other th "What does a man who is 46 years old, who is facing 77 Political Prisoners: Mike

Michael Billington addressed marchers against the death penalty at a rally near Richmond, Virginia on Sept. 28, in at a state prison in Powhatan to begin serving 77 yearsfo r "securities fraud" -a trumped-up charge designed he was being jailedfo r political organizing.

EIR October 16, 1992 National 63 the Internal Revenue Servic� . In January 1989, he was LaRouche programis sentenced to 15 years in pris n. under scrutinyin Russia LaRouche's supporters consider him a victim of offi­ cialcaprice , and insist that h is a politicalp risoner. They

maintain that LaRouche is danI gerous for the American The Russian weekly New Times at the endof September Establishment, because of h's views and his widespread (issue no. 39) carried the following unsigned article on (quite scandalous) internatio al fame . Also, he has partic­ U.S. independent presidential candidate Lyndon ipated in five presidential c�mpaigns. The main theses LaRouche. entitled "He Is Not Yet President." Themaga­ of LaRouche's program ha' e been struggle against the zine circulates worldwide . International Monetary FUll( and private banks, and for a ban on narcotics and resuscitation of America's sick For the fourth year now, New Times' old acquaintance, the society. For more than one d€ cade, he has been propagan­ American political activist Lyndon LaRouche,is servinga dizing his Napoleonic idee 1xe, the Productive Triangle sentence in federal prison in Rochester, Minnesota: Regu­ program: an economic UPSU�.I e of united Europe, during lar readers of our journal will recall, that in the summer an economic depression in U.S.A. of 1987, Lyndon LaRouche and the French European In order to upset life £ { "the worldwide usury of Workers Party [ sic] sued NTin a Parissuperior court. The the banks" a little bit, LaRt>uche advises Third World pretext for the suit was an article which had called the countriesto freezepayment dn their debts and is surprised LaRouche groups in Europe and America"Nazis Without that these revolutionary vie\\s are not to the liking of the the Swastika." In September 1987, the Paris court de­ American authorities. clared the suit by LaRouche and his supporters groundless In the Rochester prison, ."here in September Lyndon and rejected the accusations on all points. Thedecline and LaRouche markedhis 70thbi 1hday, he is not wasting any inglorious demise of the EWP commenced fromthat time time: He is again taking part n the electoral campaign for on . the presidency, he has writteh five books on economics, A year and a half later, Lyndon LaRouche himself philosophy, and science, he s fighting for a reconsidera­ landed'in the dock. At first he was accused df machina­ tion of his case, and he is alleady giving thought to how tions with credit cards, and then of conspiracy to confuse �e might help Russia.

15 years; Shelley Ascher-IO years; Shubeilat-death sen­ picket sign, "77 Years and Innocent," referring to Bill­ tence?" (a reference to imprisoned Jordanian leader Laith ington's prison term, drew a particularly shocked response Shubeilat-see EIR . Oct. 2, p. 47.) Another poster said: "If from th,ose who passed, amo�g them not only Germans, but the U. S. wants to preach human rights, it should clean up its also many Americans and otlierfor eigners. mess at home." In Frankfurt, Germany on Sept. 28, a large international Bush lies about comm ,nism delegation gathered around the banner "Stop Death Penalty Billington appeared at a rallyI in Richmond, before surren- in the U.S.A." and posters of LaRouche and Mike Billington. dering at the state prison in powhatan, Virginia. The press The revival of the death penalty in the United States is partic­ statement released there noted at he has already served a three­ ularly repugnant to Europeans, whose countries have all year federal sentence for politieal fundraising, and added: banned it a long time ago as a relic of a bygone and more "There is a particular irotiy in this regard. Billington has barbarous age . dedicated his recent years--,including those in prison-to That evening, a banner "Freedom for the Political Prison­ work on China, to the purpo�e of contributing to the defeat ers," was spread out on the ground at a crowded site in the of the communist tyranny in thI at once-great nation. He often city of Hanover, and about 50 candles were placed around it expressed his outrage at the lie spread by both Bush and the I plus smaller signs with the names of the political prisoners Democratic Party leadership hat co�munism had vanished and the years of their sentences. Some people reacted, "This from the Earth with the fall f the Soviet Union. Not only j is worse than McCarthy," especially when they heard of the does the United States conti ue to support Beijing, but the 77-year sentence. United States has effectively supported the Maoist fanatics In Cologne, in the heart of the Rhineland, at a busy area who are threatening to spread is hideous form of communist in the city center, a similar banner bore the slogan "Stop the tyranny throughout the world, while condemning the leaders Death Penalty in the U.S.A." and was flanked by a makeshift of the fight against drugs andI terrorism in the United States electric chair with life-size manikin strapped into it. The to longer-than-life prison sentences."

64 National EIR October 16, 1992 POW-MIAco verup exposed despite Senate hearings by Edward Spannaus

A fiercebattle is takingplace behindthe scenes in the U .S. Senate in Indochina. "This was consistent with �ficial policy that all in connection with efforts to bring to a conclusion the 20-year our men are home," charged Grassley. coverup of the abandonment of prisoners of war (POWs) by (For EIR ' s exclusive analysis of hO\\f Kissinger betrayed the Kissinger-Nixon administration in 1972-73. Although the the U.S. POWs and MIAs in the spring of 1973, see EIR , Oct. creationthe of Senate Select Committee on POW -MIA Affairs, 9, p. 26.) chaired by Sen. John Kerry (D-Mass.), was supposed to airthe The existence of a Senate staff mel!norandum charging issue, and thenbury it once and for all, therecent hearings appear that the Bush administration misled the ¢ommittee about the instead to have brought to the surface longstanding bitterness at survival of POW s in Southeast Asia was diisclosed in the Oct. 7 Kissinger's betrayal of the POWs, and at the ensuing coverup Washington Times. Recent testimony of Bush administration conducted by five administrations. officials is "misleading at best," and clI>ntradicts testimony The public revival of the POW-MIA issue is also being by former Nixon administration official� which established a fueled by a continuous stream of rumors that off-again, on­ strong case that U . S. servicemen were lq10winglyleft behind again presidential candidate Ross Perot is planning a dramat­ when U.S. troops withdrew from Vietnam in 1973, argued ic maneuver in which one or more live POWs would be the staff memorandum. extracted from Indochina before the November elections. The Washington Times also cited ano�her secret memoran­ dum from Senator Smith to Kerry, sayi� that Pentagon offi­ Bush administration under attack cials tried to cloud the issue in a recent qriefingto committee Two news stories appearing on Oct. 7, which were re­ members. "In' my opinion, the briefing:was the culmination portedly based on leaks from the Senate POW -MIA commit­ of years of doubletalk, misinformation, and obfuscation by tee, show that the Kerry hearings have not succeeded in officialsresponsible for the POW-MIA issue," wrote Smith, putting the POW issue to rest. according to the Washington Times acc()unt. Rowland Evans and Robert Novak cited "anger boiling up inside the Senate Select POW -MIA Committee" which is Kissinger role is well known ! aimed at the Defense Intelligence Agency (DIA). The syndi­ Senate Foreign Relations Committee documents re­ cated columnists reported on a secret meeting on Oct. 5 be­ viewed by EIR indicate that committee staffers are well aware tween committee members and Defense Secretary Richard of the treacherous role played by former Nixon National Cheney and National Security Adviser Brent Scowcroft, ap­ Security Adviser Henry Kissinger in petraying the POWs parently intended to "tie up loose ends" and head off any fur­ and MIAs at the conclusion of Vietnaffi!War . ther inquiry into the DIA' s handling of intelligence reports on Internal memoranda prepared by staff members clearly POW s who were leftbehind after the end of the Vietnam War. identify Kissinger's responsibility for tlle Nixon administra­ Senator Kerry and Sen. John McCain (R-Ariz.), who is tion's policy statement in April 1973 i that all prisoners in himself a former POW, are skeptical ofreports that there may Indochina were on their way homeia declaration that at still be live POWs in Indochina, say Evans and Novak,but least 350 known prisoners were dead diespite overwhelming committee vice chairman Bob Smith (R-N.H.) believes that evidence to the contrary. Defense Department memoranda POWs are still alive, and this disagreement has flared up in cited in last week's issue of EIR show that as late as March the course of tne hearings. 28, 1973, Pentagon officials believed �at 350 POWs were On Oct. 5, Charles Grassley (R-Iowa) took to the floorof being held in Laos; nevertheless, by �priI 12-13, 1973, the the Senate to raise his doubts as to whether Congress could U.S. government's official, stated po�icy was to write off "trust theDIA to competently evaluate evidence of possible these 350 POWs as dead, and announce that the repatriation survival" of POWs and men listed as missing in action of prisoners was complete. By some; mysterious process, (MIAs). Grassley pointed out that DIA did not follow up re­ these 350 known POWs were "converted"to missing in ac­ portsthat POWs had been leftbeh ind, and said that the intelli­ tion, thus declaring them unaccounted 'for-and therefore as gence community all but stopped looking for distress signals good as dead.

EIR October 16, 1992 National 65 Helms staffpurge d over POW-MIA report over $4 billion in aid for reconstruction. It also called for the The fight within the Senate Foreign Relations Committee creation of a U.S.-North Vietnam Joint Economic Commis­ over the POW coverup and exposure of Kissinger's role is sion to be formed within 30 days. a long-standing one, which has resulted in some dramatic However, says the staff report: "The letter, and the com­ eruptions within the committee staff. mitments it implied, were not revealed even to the highest­ Numerous sources have confirmed to EIR a story which ranking senators and members of Congress. . . . Congress has been circulating for over a year: that following the May knew nothing of the Kissinger commitments." 1991 publication of an explosive minority staff report on the In the interpretationof the minority staff, payment ofsuch POW issue, nine staff members who had prepared the report funds to North Vietnam "would have been an admission of were summarily fired. The firings were ordered by Adm. culpability" for the war. "Congress realized full well, if Kis­ James "Bud" Nance, a former National Security Council singer did not, that the soothing word 'reconstruction' actual­ staff member who took over Sen. Jesse Helm's (R-N.C.) ly meant 'reparations . ' The American people would never pay staff last year. reparations when no crime had been committed. Congress The controversial report was entitled "An Examination saw Kissinger's plan as a betrayaland an admission of guilt." of U.S. Policy Toward POW/MIAs," and was prepared by However, the report continues, "there is no doubt that the Republican staff ofthe Senate Foreign Relations Commit­ the North Vietnamese conclUded that the President's emis­ tee . The report became the equivalent of a commercial "best­ sary had pledged billions of dollars in reparations to the seller," with well over 100,000 copies distributed. Its publi­ Democratic Republic of Vietham." cation triggered the creation of the Select Committee on The report implies, but does not make explicit, that the POW-MIA Affairs . North Vietnamese had con$istently linked the release of The staff report opened with a letter of transmittal signed POWs to the payment ofthe r�parations. Thus when Kissing­ by Senator Helms, which states that his staffhas concluded, er promised, but failed to deliver the promised payment, he afterexamining the conduct of those U.S. governmentagen­ sealed the fate of hundreds, if not thousands, of POWs and cies which have the responsibility for determining whether MIAs. any POW-MIAs are still alive, that "the real , internal policy of the U . S. governmentwas to act upon the presumption that How many were left? all MIAs were dead." As a result, the staff found, "any The total number of U.S. prisoners returned by North evidence that suggested an MIA might be alive was uniform­ Vietnam during "Operation Homecoming" in March 1973 ly and arbitarily rejected." was 591. The staffreport reaches the following conclusions The minority staff report covered the entire history of the about the total number who were left behind: POW issue vis-a-vis the Soviet Union from World War I "At that time [April 1973] the U.S. government listed through what it termed "the Second Indochina 'Y.W': (Viet­ 2,538 [as] missing in action. However, sources interviewed nam)-the first being fought by communist forces against by the committee staff stated that this official number did not the French , and with which there were many parallels as include MIAs assigned to covert or black operations. They regards the treatment of POWs. estimated the number of covert MIAs at another 2,500, mak­ The report suggests that the U.S. government "knowingly ing a total of over 5,000 MIAs-{)ver twice the official left men-perhaps thousands of men-in the captivity of com­ number." munist forces in Southeast Asia." Although the Paris peace It is highly significant that these estimates and conclu­ agreementsigned in January 1973 providedthat all POWs were sions are coming from the Rr�publican staff of the Foreign to be returned, the North Vietnamese and their Laotian allies Relations Committee. While they tend to put a good part of took the position that the peace accord did not cover prisoners the blame for the initial abandonment on the United States' held by the communist Pathet Lao forces in Laos. weak negotiating position due to internal dissension and the Kissinger had announced at the time of the signing of the desire to end the war, they hit Kissinger's secret negotiations Paris agreements that all American prisoners held in Laos very hard for the initial abandonment, and the Reagan-Bush "will be returnedto us in Hanoi." Whether Kissinger actually administrations for the continuing suppression of evidence. believed this or not is not known, but it is clear that this was While it seems clear that the Kerry hearings were intend­ never done, and Kissinger, in his rush to accomplish the with­ ed to finally close the door on the POW issue, there is a drawal of U.S. troops, never held the North Vietnamese to growing outrage in both the' U.S. population and among this alleged agreement. Senate personnel themselves, which may prevent this from The minority staff report includes a section entitled "The being carried out. Critical elements that Kerry and company Kissinger Hand-carried Letter" dealing with Kissinger's se­ may not have taken into account, are the growing isolation cret agreement to provide postwar reconstruction aid to North of George Bush and his administration, as well as long­ Vietnam. The Kissinger letter, from President Nixon, de­ simmering hatred of Henry Kissinger by those whom he tailed the administration's alleged commitment to contribute stabbed in the back during his'White House years.

66 National EIR October 16, 1992 KissingerWa tch by M.T.Upharsin

The emperor's ing the Senate hearings on the POWs ask him. Either he sees a psychiatrist issue. Der Sp iegel then gave devasta­ or he's out." new clothes ting quotes from key colleagues of On Sept. 29, Geonany's largest Henry Kissinger stands more exposed Henry's, fromIsaacson 's book. There popular daily, Bild1eitung, down­ than ever before, like the emperor was Helmut Sonnenfeldt, saying: graded Kissinger as "the bad guy of with "new clothes." Amidst a world "Henry does not lie because it is in the day." Bild reporte4 that on the sur­ economic crisis and intensifying glob­ his interest. He lies because it is his face, Kissinger played the confidant al conflicts, there are two factors that nature ." of Nixon, but behind his back, he gave have contributed to friends parting Or, Lawrence Eagleburger, de­ him names like "dru�ard" and "ham­ company with Henry, realizing that claring of Kissinger that "Henry does burger brain. " his supposedly oracular prognostica­ not have an intrinsicfeel for the Amer­ Der Sp iegel also pointed to Hen­ tions have been pure sophistry. ican political system, and he does not ry's sado-masochistic personality. The most explosive development start with the same basic values and When he once met Israeli Prime Min­ was Kissinger's testimony before the assumptions. " ister Golda Meir, wQo told him that Senate Select Committee on POW­ Or, James Schlesinger, who told her policy was to dQ to others what MIA Affairs , which even led the New Der Sp iegel: "Henry's style of cheat­ they would do again�t her, Kissinger York Times on Sept. 26 to write: "Mr. ing may be less condemned in Europe is said to have responded that one Kissinger offered only sophistry, self­ than here. Anglo-Saxon countries should add 10%. justification and counterattacks. " have little preference for someone Kissinger may have made good This, in response to partial exposure who is exceptionally manipulative." money with his consulting firm, Kis­ of how Kissinger abandoned an esti­ Der Sp iegel reported what EIR's singer Associates, Inc., Der Spiegel mated 350 POW-MIAs in Laos alone. readers have long known: that Kis­ wrote, but he never did what he did Another development with a long singer was implanted into U. S. politi­ while in office for the, money, as much fuse was the almost simultaneous ap­ cal life by the oligarch Fritz Kraemer, as out of a totalitarian bent-such as pearance of Walter Isaacson's book, who called Henry "my little Jew"; the his supportfor Red cbma's regime. As Kissinger. report adds that nobody really knows New York Rep. Stephen Solarz put it: Taken together, these two items why Henry's 1954 book, Nuclear "Dr. Kissinger has always come out in have touched off a deluge of attacks, Weapons and Foreign Policy,became defense of repressive dictatorships, including in publications that former­ famous. The magazine also quoted an whether he had a financial interest or ly treatedKissinger as "untouchable." old campaign manager of Nelson not." Rockefeller, Oscar Ruebhausen, who comments on Kissinger joining Nix­ on's camp as soon as Rockefeller lost Der Spiegel: Pouting out in the primaries in 1968: "We were a public execution shocked. There was a sense that he Kissinger has not taken this exposure Henry Kissinger was characterized as was a whore." well. The Sept. 15 New York Post car­ "painfullyamoral" in the Oct. 5 issue of At the high point of tensions be­ ried the report in its gossip column, the German news weekly Der Spiegel, tween Nixon and a mentally unstable that Henry planned to boycott an affair which ran a five-page review of Walter and disloyal Kissinger in the White at the Council on F4>reign Relations. Isaacson's new book. The review, a House, Nixon insisted that he would Apparently Henry tJrrew a fit when demontage of thelongtime positive im­ fire Henry if he didn't agree to seek longtime associate William Hyland age of Henry in such Anglophile Ger­ psychiatric care. This tale from Isaac­ wrote a one-paragraph favorable re­ man media as Der Sp iegel, is the more son's book had also been reported in view of Isaacson's book in the latest interesting, as the founderand publisher the Sept. 28 Washington Post by Mary issue of Foreign i\ffairs. Kissinger of the magazine, Rudolf Augstein, has McGrory, who tells how Nixon set up was reputed to be sp miffed, that he been a close friend of Kissinger for a "Handle Henry Committee" to ap­ boycotted the gala dinner celebrating many years. proach the "psychotic" Kissinger, the 70th annivers� of the premier The review started off by describ­ with the proposal to seek psychiatric magazine of the eastern liberal estab­ ing Kissinger's obvious paranoia dur- care. Said Nixon: "Just tell him; don't lishment.

EIR October 16, 1992 National 67 Congressional Closeup by William Jones

Roybal asks GAO to beat his Republican opponent in No­ Objections were also raised examine pension funds vember. against the "permissiveness" of the Rep. Edward R. Roybal (D-Calif.), Hastings was the first black feder­ treaty in allowing the Russians to re­ chairman of the House Select Com­ al judge to be appointed in the state of tain their nuclear warheads (START mittee on Aging, announced on Sept. Florida. Accused of bribery and cor­ is focused on the destruction of 21 that he was requesting the General ruption, Hastings was acquitted in a launchers, rather than warheads), the Accounting Officeto examine the sta­ 1983 criminal trial. The U.S. Senate, shoddy record of the Soviets in keep­ tus of public pension plans, including however, convicted him him anyway. ing arms control agreements, and the funding and contribution levels. Roy­ The impeachment and conviction extreme difficulties in monitoring the bal said that he would be holding more were then overturned on Sept. 17 by treaty (on-site inspections would be hearings to investigate the health of federal Judge Stanley Sporkin, who limited to assembly facilities and not the funds. ruled that the full Senate, not just a production facilities). Roybal's committee hearings last panel of 12 senators, should have tried Several "killer amendments" of­ year revealed that a number of state him. fered by Sen. Malcolm Wallop (R­ and local governmentswere engaging Wyo.) were easily defeated. Some in a variety of methods to divert public senators expressed concern about the pension funds , including delaying or speed with which the United States, reducing contributions to the funds, for economic more than military rea­ Simon attacks Germany changing the actuarial assumptions sons, was dismantling its military over 'anti-Semitism' that determine contribution levels, facilities, far beyond the level re­ Sen. Paul Simon (D-Ill.), the darling taking loans, or even withdrawing quired by the START treaty. of the Anti-Defamation League, at­ money from the funds, to alleviate tacked the German government for their own budget crises. permitting what he called "anti-Semit­ Roybal said that the committee ism without Jewish people," referring would be hearing from the GAO as to neo-Nazi attacks on foreigners in well as from public employees, public quota increase Germany, and for doing "little to IMF pension fund trustees, and "others H soothe the tensions." passed by ouse with expertise in this area. I remain The House passed the Freedom Sup­ Simon criticizeathe German gov­ concerned by the impact of this con­ port Act, which contained a $12 bil­ ernment fornot doing enough to stop tinued trend on the financial retire­ lion quota increase for the Internation­ the activities of the neo-Nazis in Ger­ ment security of public workers and al Monetary Fund (IMF), by a vote of many. Simon also criticized Chancel­ retirees, as well as the impact on all 232-164 on Oct. 3. Although only a lor Helmut Kohl's attempts to reform taxpayers, who may have to eventual­ part of the $12 billion will be going to the German immigration law, one of ly make up any shortfalls in the fund­ countries of the former Soviet Union, the most liberal in all of Europe, in ing of public pension funds through the controversial measure was order to stem some of the violent out­ additional taxes." squeezed onto the bill authorizing breaks. U.S. aid and given the misleading name in order to make it more palat­ able to legislators . An alliance of liberal Democrats Hastings wins House Senate approves and conservative Republicans op­ primary in Florida START treaty posed the bill. Liberals, like Rep. Former federal Judge Alcee Hastings, The Senate approved the Strategic Maxine Waters (D-Calif.), opposed it whose impeachment was reversed in Arms Reduction Treaty (START) on as a drain from "limited resources" September, won the Democratic nom­ Oct. 2 by a vote of 93-6. Despite the which they believe should be applied ination to Congress in the 23rd C.D. lopsided vote, the debate was intense, to domestic needs. of Florida over state Rep. Lois Fran­ as conservative Republicans tried to Conservatives objected to any­ kel with 58% of the vote on Oct. 1. scuttle the treaty. Opponents warned thing being given to the former Soviet The district, which is centered around that the treaty would allow Russia to republics, given the tenuous nature of Fort Lauderdale, is heavily Democrat­ modernize and maintain unlimited the political situation there , and be­ ic, and Hastings is pegged to easily amounts of non-deployed weapons. cause of recent sales of diesel subma-

68 National EIR October 16, 1992 rines to Iran by Russia. "I think we Supreme Court okays the city of Juba in the south of Sudan, ought to put this bill on hold," said retrial for Rep. Ford which is besieged by tebels. Although Rep. Henry Hyde (R-Ill.), during the The u.s. Supreme Court on Oct. 5 the details are still unclear, it is alleged debate on Oct. 3, "until our State De­ upheld without comment the ruling of that the killing was carried out by the partment or the National Security a federal judge that another trial on Sudanese Army. Th� government of Council clarifiesthe issue as to wheth­ conspiracy, mail fraud, and bank Sudan has been enga$ed in a civil war er this sale is part of a pattern of the fraud charges against Rep. Harold in the south, in whi/ch foreign non­ transferrence of weapons of war to the Ford (D-Tenn.) should be held in governmental orgarizations have most irresponsible countries in the Memphis, Tennessee, but that jurors been helping rebel g�oups under John world." would be selected from Jackson, Ten­ Garang. Garang recejives much of his Rep. Jon Kyl (R-Ariz.) said that nessee. The ruling was a setback for financial and politiCiaI support from this was not a "support act" for Russia the Ford defense. the United States. I at all, but rather an IMF quota increase Ford had been tried in Memphis, The legislation would allow the bill. "Part of the problem here," said but the trial was declared a mistrial "Red Cross, U.S. officials, and other Kyl, "is that this IMF quota business when the predominantly black jury relief organizations" to have "un­ is really for the purpose of raising the found it impossible to reach a verdict. restricted and uncon�itional access to U. S. share of money to the IMF. It is Because many observers saw the all parts of the country ." The resolu­ not to help Russia." Kyl noted that charges as stemming from a govern­ tion calls upon Presiqent Bush to work only half of the sum was to be spent ment vendetta against Ford, the judge toward the convenin� of the U.N. Se­ in "assistance" to the former Soviet ruled that the retrial jury would be se­ curity Council to 'lconsider further republics. lected from the Jackson area. After means" to deal witH. the situation in aU. S. Court of Appeals upheld the Sudan. ruling in March, Ford appealed to the U.S. Supreme Court, arguing that the Abortion veto stands, judge was wrong in arguing that black I but cable veto nixed residents of Memphis could not serve The House failed on Oct. 2 to override as fair and impartial jurors. October Surptise probe President Bush's veto of a bill to elim­ gets funds, GOPers' goat inate the "gag rule" at federally fund­ Over Republican protests, the House ed family planning clinics. The House voted on 221-181 Oct. 2 to provide vote of 266- 148 was 10 votes short of approximately $1.3 million to fund the two-thirds needed to override. It the investigation of the "October Sur­ is the second time that the Congress Sudan targeted for prise," in which t:he Reagan-Bush has failed to override the President's 'international monitoring' campaign is said to . have delayed the veto of this particular legislation, and A Senate Concurrent Resolution in­ release of hostage� held by Iranian it was Bush's 35th straight veto to be troduced by Paul Simon (D-Ill.) and fundamentalists. until after the 1980 upheld by Congress. Nancy Kassebaum (R-Kan.) would election. The "gag rule" prevents abortion effectively place Sudan under the Rep. Lee Hamilton (D-Ind.), counseling at federally funded family same type of U.N. "receivership" as chairman of the bip/utisan committee planning clinics except by physicians. that suffered by Iraq. The crime of responsible for the wobe, has said that The Senate had succeededin overriding Sudan: refusing to cave in to the "new it will still take wettks, possibly until the veto in a vote of 73-26 on Oct. 1. world order" of PresidentBush. next January , befor� the investigation On Oct. 5, Congress did override During the Persian Gulf war, Su­ will be completed. it began in Febru­ thePreside nt's rejection of the cable reg­ dan sided with Iraq. On Oct. 5, Sudan ary 1992. ulation bill. The vote was 74-25 in the came under attack when it proposed House Minority Leader Bob Mi­ Senate and 308-114 in the House. The to export 20,000 tons of frozen beef chel (R-Ill.) opposed the probe, call­ marginin theHouse was bigger thanthat to Iraq-shipments which are allowed ing the charges "libelous and unfound­ by which the House passed the bill in under the U.N. sanctions. ed." Michel also saikIthat the audacity September, as Democrats made a major The U.S. press has been full of of the Congress to a�k the taxpayers "to effortto create theimpr ession that Presi­ stories about the killing of a U.S. AID fund an investigati�n into these fanta­ dent Bush is a lame duck. worker-allegedly for treason-in sies was beyond th� pale."

ElK October 16, 1992 National 69 National News

Joseph Zwilling, a spokesman for the New York archdiocese, where NBC and "Saturday Night Live" are based, told press: ARGUS, U.S. Marshals "To me what she did was an act of hatred Royko roasts blackout and promoted intolerance. PopeJohn Paul is of Iraqi child mortality under investigation a tireless advocate for peace." A spokesman At least two different fonnal investigations for Bishop Daily said, "I'm sure the Holy In a most trenchant column, which was are now ongoing against the founder of the Father would be the first one to say a prayer printed in the Virginia Winchester Star on private military group ARGUS (Armored for her to come to grips with whatever is Sept. 30,. syndicated columnist Mike Royko Response Group United States), which was angering her." takes up the theme of the recent study on instrumental in the Oct. 6, 1986 military O'Connor's action comes at the same deaths of Iraqi children, which was pub­ raid against Lyndon LaRouche in Leesburg, time that Madonna, another fonner Catholic lished in, the Sept. 24 edition of the New Virginia. One investigation is by the Depart­ and rock star who has viciously attacked England tournai of Medicine. The study by ment of Justice and another by the District the church , has come out with a so-called the Harvard School of Public Health, a fol­ of Columbia Police, according to the Oct. 3 "music video" that displays such explicit lowup from last year by the Harvard team Washington Post. The object of the investi­ hetero- and homosexual activity, that even that visited Iraq, attributed the high child gation is to determine how ARGUS co­ the hard-core MTV will only air those por­ mortalityto the U.N. embargo and the U.S. founder J.C. Herbert Bryant used his links tions of it late at night. MTV had earlier bombing 'of non-military-related infrastruc­ to the U.S. Marshals Service to avoid an placed strictures on the video "Erotica" that ture , and. found this year that 46,900 more arrest for carrying illegal guns in his car Madonna could not "desecrate" the cross or children under the age of 5 had died as a when he was detained on Sept. 2 at the May­ show sexual relations with animals or result of the continuing hardship inflicted on flower Hotel in Washington. Bryant also minors. Iraq by the "allies." heads the Marshals Service Association. Royko lampoons the media for not con­ Henry Hudson, the U.S. Attorney for sidering this story newsworthy, and puts the Eastern District of Virginia who ran the forward dramatic ways in which the story LaRouche railroad in 1988 and the illegal could be tailored to media tastes: If 46,900 bankruptcy against companies and publica­ children were put in a football stadium, and tions associated with him in 1987, is cur­ Cisneros takeover of then it were blown up, or if a giant meteor rently the head of the U.S. Marshals Ser­ were to hit Disney World some afternoon. vice. D.C. Police say that Bryant network gets FCC okay "represented to us he was a U.S. marshals The Federal Communications Commission deputy." approved the sale by Hallmark ofUnivision, the largest Spanish-language TV network in the U.S., to a consortium headed by Mexi­ Local :Mich. candidate can TV magnate Emilio Azcarraga, Vene­ zuela's Gustavo Cisneros, and Nonnan blasts Kevorkian backers Rock singer rips pope Lear's partner Jerrol Perenchio, according Following Dr. Jack Kevorkian's fifth mur­ to UPI. The FCC approved the deal on Sept. der, state representative candidate for the photo on NBC program 23 , but it was not reported until Oct. 1. The 28th District in Michigan Karen Roberts, of Bald Irish rock singer Sinead O'Connor approval process was expected to take up to Warren, blasted the death lobby in the state called for people to "fight the enemy" and a year; instead, the FCC rushed it through legislature. "How is it that in the last two ripped up a photo of the pope on "Saturday in five months. years Dr. Kevorkian got away with five Night Live," Oct. 3, in a shocking display of Approval was granted without a hear­ murders?" she asked in a statement on Sept. satanic hatred, which took even the cynics at ing, although several objections had been 30. NBC network by surprise. O'Connor, in a filed against the transaction. One of the ob­ She singled out for condemnation House later interview, blamed child abuse on the jections was filed by EIR . which, among Judiciary Committee Chainnan Perry Bul­ Catholic Church . In her appearance on "Sat­ other issues, noted that Cisneros does not lard and Rep. Lynn Jondahl of the Judiciary urday Night Live," she perfonned the song believe in free speech and has a proven re­ Subcommittee, who prevented Senate Bill "War" written by the late Jamaican marijua­ cord of squashing dissent, and that he does 32 from Il!aching the floor: "While Senate na advocate Bob Marley. When she reached not meet the U. S. character qualifications Bill 32 is highly inadequate because its pen­ the final refrain , "We have confidence in to run a broadcast company, given several alty for so-called physician assisted-suicide, the victory of good over evil," she pulled a instances in which his name and/or the name or killing the sick . . . falsely distinguishes photograph of the pope out from behind her of his companies and associates have been between euthanasia and murder, and there­ back and ripped it into four pieces, flinging alleged to be linked to corrupt activities, fore promotes euthanasia; nonetheless, it them into the face of the audience. "Fight including drug-trafficking and drug-money starts right by classifying assisted-suicide as the real enemy," she spat. laundering. a fe lony offense.

70 National EIR October 16, 1992 • . Brildly

• DONALD PHAU, an associate "More than simply killing people, Kev­ tion into why the agency made "incomplete of independent presidential candidate orkian is consciously assaulting the most statements" to the Justice Department about Lyndon LaRouche convicted in Vir­ important values of Judeo-Christian civili­ the affair on Oct. 7. ginia for his political organizing ac­ zation, and thus opening the door to even Judge Marvin Shoob stated that, based tivities, had his appeal denied by the more horrible crimes, the way the Nazi prac­ on what he had heard, "I have concluded state Court of Appeals. Phau has been tice of euthanasia opened the way to the that the substantial financing of Iraq by sentenced to 25 years in prison. The concentration camps .... Is it not obvi­ BNL-Atlanta was well known in interna­ trial judge, Clifford Weckstein, had ous," Roberts asked, "that once the princi­ tional banking circles, that it was well been caught secretly communicating ples of the sanctity of life have been elimi­ known in the United States, and by U.S. with the LaRouchf-hating Anti-Def­ nated, the state , to reduce its expenses, will intelligence." On Sept. 30, Drogoul said amation League about the be more and more tempted to look at some that two front companies with U.S. intelli­ "LaRouche cases" he was hearing. lives as being a burden and to see their elimi­ gence agency connections used BNL in con­ nation as a relief? Perhaps Mr. Bullard and nection with the loans to Iraq . Drogoul said • A KEY CHARGE in the Iran­ Mr. Jondahl's stalling tactics have just such that the Iraqi minister of industry and mili­ Contra indictment against former a goal." tary production had told him, "We're all in Secretary of Defe�se Caspar Weinb­ this together. The intelligence service of the erger was dismissed. Federal Judge U.S. works very closely with the intelli­ Thomas Hogan struck down the gence service of the Iraqi government." charge that Weinberger obstructed Congress by witliliolding his notes DOJ covers for Bush and diaries from congressional inves­ tigators in 1987. in Iraq bank loan case Slaves of Saudis In an unexpected move which surprised both • THE NEXT VICTIM Virginia thejudge and the defense team, federal pros­ ask for U.S. asylum Attorney General Mary Sue Terry ecutors in the Altanta, Georgia case involv­ Defense lawyers for two Asian women kept has lined up for the Virginia electric ing the Banca Nazionale del Lavoro moved as slaves by the older brother of Saudi King chair is wheelchah'-boundparaplegic Oct. 1 to withdraw aplea bargain agreement Fahd in the Ritz-Carlton Hotel in Houston, Charles S. Stamper. He is scheduled with defendant Christopher Drogoul and fileda summary with immigration authori­ to be executed on Oct. 28, and a allow the case to go to trial . The government ties in the women's deportation proceed­ clemency petition has been submitted had previously opposed allowing him to ings, according to the Sept. 29 Houston to Gov. Douglas Wilder. withdraw his guilty plea, but made an about­ Chronicle. The summary states that domes­ face when CIA documents implicating the tic workers have been tricked into signing • THE U.S. NAVY officially White House's involvement in illegal loans employment contracts. changed its strategy from preparation to Iraq surfaced at Drogoul' s sentencing "We have actual written confirmation of for deep-water war to dealing with hearing. The newly discovered evidence the agreement between the Saudi and Philip­ regional hot-spots. "It is a fundamen­ that Drogoul was not acting as a "rogue" pine governments requiring the return of tal shift from open-ocean warfight­ banker, as the DOJ had contended, but had slaves who escape ," said defense lawyer ing," said Defense Department approval from the Bush administration, led Jerry S. Payne, who is trying to win political spokesman Pete Williams on Oct. 3. Drogoul to withdraw his guilty plea, which asylum in the United States for his clients. The Navy said it was forming a new the governmentopposed. The threat of more Payne made public an internal report sent in Naval Doctrine C;ommandto develop hearings, with more evidence of govern­ 1987 to the Philippine government from its details of the new strategy which co­ ment involvement being aired this close to embassy in Riyadh which said: "The King­ here with the exigencies of the "new the election changed prosecutors' minds , dom's concept of domestic helpers is that of world order. " and the unexpected Department of Justice a slave , having no rights whatsoever. They move now shuts the BNL case down until can be given away as presents . They can be • 'NEW YORl\.' magazine's Oct. well after November. maltreated and when they complain they are 5 issue attemptelt to debunk the theo­ The New York Times said Oct. 2 that the under the police jurisdiction and immediate­ ry that the Central Intelligence hearings "provided a daily reminder of the ly land in jail, even if they are the com­ Agency was involved in the downing administration's policy of aiding Mr. Hus­ plainants. " of Pan Am Flight 103 in 1988 as a sein before the Persian Gulf war, and After "strong recommendations" from "LaRouche hoax." The article fol­ spawned charges of an administration cov­ the embassy in Saudi Arabia, Philippines lows the format of an earlier article erup." Under pressure, from this "daily re­ President Corazon Aquino instituted a tem­ in Time magazine which claimed that minder" in both the courtroom and hearings porary ban on the deployment of Filipino the "October Sutprise" was concoct­ by Texas Rep. Henry Gonzalez's House workers to Saudi Arabia in 1988, but later ed by LaRouche investigative jour­ Banking Committee, CIA director Robert the ban was lifted under a Saudi threat to nalists. Gates ordered a belated internal investiga- ban oil sales to the Philippines.

EIR October 16, 1992 National 71 Editorial

Will LaRouche getjusti ce?

On Oct. 6, 1986 a federal , state , and local task force portant, we hope that the criminalCult Awareness Net­ conducted a raid against the offices of Lyndon H. work is also to be brought before the bar of justice. LaRouche 's associates, and planned an assault on the There is no place in a democratic republic for a group place he was staying . This was the first step in an which can kidnap and brainwash individuals for hire. escalating campaign which included illegal actions by These are crimes which carry sentences ranging from the governmentthe following spring, to shut down New 20 years to life in prison. Solidarity newspaper and the Fusion Energy Founda­ As this case against M(J)ore , Kelly, and Smith pro­ tion. Then, there were the railroad trials of LaRouche ceeds through the court, we can expect that a good deal and several of his associates. of material relevant to the railroading of LaRouche and It had begun to seem that there was no longer a his associates, on false criminal charges, will come to possibility of getting justice in the United States, when light. a very welcome tum of events occurred. One of the key It should be noted that the operation run by the actors in the "Get LaRouche" task force, Don Moore , Cult Awareness Network and the "Get LaRouche" task has now been arrested, for conspiring to kidnap Lewis force , in conjunction with the ADL, which operates du Pont Smith and his wife Andrea. This was an activity as an unofficial part of the u.S. Justice Department, carried out in coordination with the Cult Awareness dovetailed with Henry A. I<:issinger's vendetta against Network (CAN), which has served as the extra-legal LaRouche. There is docunlented evidence of Kissing­ center for Anti-Defamation League (ADL) activities er' s efforts to have LaRouche "put away," beginning against LaRouche. no later than 1982, when it appeared that LaRouche As we have documented, the ADL-which could might be successful in forging an Ibero-American alli­ be known more appropriately as the American Dope ance against the bankers' dictatorship which Kissinger Lobby, for its activities in support of drug traffickers , represented. pornographers , and in some instances outright Satan­ At that time, LaRouche� was urging that the nations ists-has been deployed against LaRouche since at of Ibero-America deploy the weapon of a debt morato­ least 1978. Using the fraudulent claim that LaRouche rium, or, as he then called it, a "debt bomb," in order to and his collaborators are anti-Semites for publishing protect themselves against the fate which unfortunately the book Dope, Inc., which traces drug traffickingback did overtake them, at the ruthless hands of the consor­ to the networks behind the British Opium Wars , the tium of usurious bankers led by Kissinger's crony Da­ ADL launched a vicious campaign against them. vid Rockefeller. While much press coverage of the arrest of Moore By no later than 1983, Itask force operations were and CAN operative Galen Kelly (a private investigator in place, which surfaced during the 1984 election cam­ with a record of kidnapings of which he boasts) has paign , when the bank account of LaRouche's presiden­ been fairly objective, some media have sympathized tial campaign committee was seized in order to prevent with the father of the intended victim, E. Newbold him from apearing on prime�time television on election Smith , also indicted for this crime. Newbold Smith had eve. This was followed Jjy the sequence of events employed these thugs to kidnap and brainwash his 36- which, for almost four years now , have kept this 70- year-old son, an heir to the du Pont family fortune, who year-old patriot in federal prison. under what amounts has already suffered greatly at the hands of a father who to a life sentence. had him declared incompetent and deprived him of Now is the time for renewed efforts by all those­ access to his trust fund . both within the United States and internationally-who It is good to see the justice system deployed against are concerned at the wantqn abuses of justice in the this apparatus, which has up to now seemed to be able U.S. courts , including abuses against LaRouche and to conduct illegal acts with virtual impunity. Most im- his associates.

72 National EIR October 16, 1992 SEE LAROUCHE ON CAB L E TV

ALASKA • WESTMINSTER- • ROCHESTER- VIRGINIA • ANCHORAGE-Anchorage Carroll Community TV Ch. 55 Greater Rochester Ch. 12 • ARLINGTON-ACT Ch. 33 Community TV Ch. 46 The LaRouche Connection The LaRouche Connection The LaRouche Connection The LaRouche Connection Tuesdays-3 p.m. Thursdays-7 p.m. Sundays-1 p.m. ., Wednesdays-9 p.m. Thu rsdays-9 p.m. Greater Rochester Ch. 19 Mondays-6 :30 p.m. CALIFORNIA MICHIGAN The LaRouche Connection Wednesdays-1 2 noon • MODESTO- Public Access • TAYlOR­ Sundays-1 1 a.m . • CHESAPEAKE-ACC Ch. 40 Bulletin Board Ch. 5 Maclean-Hunter Ch. 3 Mondays-7 p.m. The LaRouche Connection Rev. James Bevel's Struggle The LaRouche Connection • STATE N ISLAND-Staten Thursdays-8 p.m. fo r America 's Future Tuesdays-7 :30 p.m. Island Community TV Ch. 24 • CHESTERFIELD COUNTY­ Rev. James Bevel's Struggle Thurs., Oct. 22-6 :30 p.m. MINNESOTA Storer Ch. 6 fo r America 's Future • MOUNTAIN VIEW­ • MINNEAPOLlS­ The Schiller Institute Show Sat., Oct. 17-6 :30 p.m. MVCTV Ch. 30 Paragon Ch. 32 Tuesdays-9 a.m. Who Owns Your Tuesdays-4 p.m. ElR World News • FAIRFAX COUNTY­ Congressman ? DISTRICT OF COLUMBIA Wednesdays-6 :30 p.m. Media General Ch. 10 Tues., Oct. 20-9 p.m. • WASHINGTON­ Sundays-9 p.m. Wednesdays-6 :30 p.m. Sun., Oct. 25-12:30 p.m. DCTV Ch. 34 • ST. PAU L-Ca ble Access Ch. 35 Fridays-2 p.m. Lincoln 's Enemies Must Still The LaRouche Connection ElR World News Sundays-6 p.m. be Defeated Sundays-1 2 noon Mondays-12 noon • LEESBURG-MultiVision Ch. 6 Mon., Oct. 26-8 :30 p.m. The LaRouche Connection ILLINOIS Wednesdays-6 p.m. Tues., Oct. 27-4:30 p.m. Mondays-7 p.m. • CHICAGO- NEW YORK TEXAS • RICHMOND & HENRICO Chicago Cable Access Ch. 21 • BUFFAlO-BCAM Ch. 32 • HOUSTON- COUNTY- LaRouche's Eco nomics I The LaRouche Connection Public Access Channel Continental Cable Ch. 31 Thurs., Oct. 22-8 :30 p.m. Tuesdays-6 p.m. The LaRouche Connection The Schiller Institute Show Who Owns Yo ur Congressman ? • DANSVlllE­ Mondays-5 p.m. Thu rsdays-6 :30 p.m. Tues., Oct. 27-9 :30 p.m. Cooney Cable Ch. 6 LaRouche Speaks The LaRouche Connection WASHINGTON MARYLAND ' Wed., Oct. 14-4 p.m. Wednesdays-afternoon • SEATTlE- • MONTGOMERY COUNTY­ Thurs., Oct. 15-1 1 p.m. Fridays-afternoon Seattle Public Access Ch. 29 MCTV Ch. 49 Tues., Oct. 20-1 a.m. • MAN HATTAN­ The LaRouche Connection The LaRouche Connection Tues., Oct. 20-10:30 a.m. Manhatta n Neighborhood Sundays-1 p.m. Thursdays-2 :30 p.m. Wed., Oct. 21-1 a.m. Network Ch. 17M • SPOKANE-Cox Cable Ch. 20 Saturdays-1 0:30 p.m. Th urs., Oct. 22-1 a.m. The LaRouche Connect'ton The Genocidal Roots of Bush 's Tues., Oct. 27-1 2:30 a.m. Fridays-6 a.m. New World Order Fri., Oct. 30-7 :30 a.m. Tues., Oct. 13-3:30 p.m.

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------� DOPE, INC . Is Bacl{!

Third edition of the $16 plus $4.50 shipping and handling. Order today! explosive best seller MaKe check or money order payable to: DOPE, INC. Ben Franklin Booksellers 107 South King Street, Leesburg, Virginia 22075 PH : (800) 453-4108 FAX: (703) 777-8287 updated and expanded Visa and MasterCard accepted. Virginia residents please add 4.5% sales tax.