EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Melvin Klenetsky, Lyndon H. LaRouche, Jr., Antony Papert, Gerald Rose, From the Managing Editor Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, Webster Tarpley, William Wertz Associate Editor: Susan Welsh yndon LaRouche’s announcement on July 18, that he has begun Managing Editors: John Sigerson, L Ronald Kokinda his campaign for President of the United States in the year 2000, is Science Editor: Marjorie Mazel Hecht welcome news, indeed. There is a leadership vacuum in the United Special Projects: Mark Burdman Book Editor: Katherine Notley States, which only he can fill. LaRouche outlined the strategic situa- Advertising Director: Marsha Freeman tion, in a speech entitled “War on the British, or, How to Save the Circulation Manager: Stanley Ezrol Economy,” at an EIR seminar in Washington, D.C. on July 23: INTELLIGENCE DIRECTORS: “Today, the question of a worldwide financial crash, something Asia and Africa: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, far more severe than 1929-1931, is no longer a matter of forecasting. Paul Goldstein Economics: Marcia Merry Baker, . The crash is already here. The nature of the crisis, however, William Engdahl goes much deeper than a mere financial crash. We’re not talking History: Anton Chaitkin Ibero-America: Robyn Quijano, Dennis Small about how to bet on the stock market. We’re not talking about where Law: Edward Spannaus to park your money while the storms blow over the financial system; Russia and Eastern Europe: Rachel Douglas, Konstantin George we’re talking about saving the very existence of this civilization, United States: Kathleen Klenetsky planetary-wide, as it presently exists.” INTERNATIONAL BUREAUS: LaRouche’s policies and his declaration of war against the British Bogota´: Jose´ Restrepo Bonn: George Gregory, Rainer Apel and the International Monetry Fund are shaping political and eco- Buenos Aires: Gerardo Tera´n nomic developments around the world. (In this issue of EIR, for Caracas: David Ramonet Copenhagen: Poul Rasmussen example, note Italy’s decision to tax derivatives, and developments Houston: Harley Schlanger in the Eurasian Land-Bridge—a report on a conference in Iran, and on Lima: Sara Maduen˜o Mexico City: Hugo Lo´pez Ochoa Indian railways in National Economy.) And Americans in particular, Milan: Leonardo Servadio should note well that his campaign is a challenge to them, to join an New Delhi: Susan Maitra Paris: Christine Bierre anti-British patriotic movement to save their nation, and civilization. Rio de Janeiro: Silvia Palacios This week’s Feature, on the history of Hongkong, should help Stockholm: Michael Ericson Washington, D.C.: William Jones cut through some of the media-induced virtual reality. In a statement Wiesbaden: Go¨ran Haglund entitled “Schiller Institute Congratulates China on Return of Hong- EIR (ISSN 0273-6314) is published weekly (50 issues) kong” (see EIR, July 18, p. 48), Schiller Institute founder Helga Zepp except for the second week of July, and the last week of LaRouche wrote, “Let us remind the world of what the Hongkong December by EIR News Service Inc., 317 Pennsylvania Ave., S.E., 2nd Floor, Washington, DC 20003. (202) question was and is all about. It is definitely not, that ‘socialism is 544-7010. For subscriptions: (703) 777-9451. World Wide Web site: http://www.larouchepub.com gobbling up a bastion of “free trade.” ’ The truth about Hongkong is e-mail: [email protected] European Headquarters: Executive Intelligence Review that one of the many crimes of the British Empire is finally coming Nachrichtenagentur GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 to an end.” Our Feature makes clear that so-called “democracy” Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Homepage: http://www.eirna.com under the Privy Council, which runs the British Empire, is a fraud. E-mail: [email protected] Executive Directors: Anno Hellenbroich, Michael Liebig There was no democracy in Hongkong under British rule. In Denmark: EIR, Post Box 2613, 2100 Copenhagen ØE, Tel. 35-43 60 40 In Mexico: EIR, R´ıo Tiber No. 87, 5o piso. Colonia Cuauhte´moc. Me´xico, DF, CP 06500. Tel: 208-3016 y 533- 26-43. Japan subscription sales: O.T.O. 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EIRContents Interviews National Economy Economics 46 Jacques Cheminade 20 Build Indian railways for 4 Currency crises lead march Jacques Cheminade is a close friend the Eurasian Land-Bridge to October global crash of Lyndon LaRouche and head of The key to fruitful trade along the A series of currency crises has the French Progress and Solidarity southern tier of the Eurasian Land- devastated the stock markets and Party; he was a candidate for Bridge, lies in strengthening the foreign exchange reserves of a President of France in 1995. existing railroads that run through growing number of Asian countries. the Indian subcontinent from east to Are they the precursor of a global west. Susan B. Maitra and Ramtanu financial earthquake? Maitra give a strategic overview of Departments the status of Indian railways, and 7 Southern Poland can be an where improvements must be made. economic powerhouse 16 Australia Dossier A statement by the Schiller Institute Rio Tinto attacks the nation-state. in Poland. The devastating floods provide an opportunity for Poland 17 From New Delhi to dump free-trade economic A whiff of hope for nuclear power. policies. 72 Editorial 8 Italy adopts a tax on Impeach Scalia! derivatives Photo and graphics credits: 9 Currency Rates Cover, 63, EIRNS/Stuart Lewis. Pages 11-13, 15, EIRNS/Michael 10 Iran takes up the fight for Weissbach. Page 14, Teheran the development of Africa Times. Pages 21, 22, 25-27, 38, A report on a conference in EIRNS/John Sigerson. Page 23, 28, Teheran, by Muriel Mirak Indian Railways. Page 31, EIRNS/ Weissbach. Montey Quesnell. Page 32, Courtesy of China Pictorial. Page 18 Business Briefs 36, Courtesy of the Hongkong Tourist Association. Page 41, Bundesbildstelle. Page 47, EIRNS/ Chris Lewis. Page 59, EIRNS. Page 60, EIRNS/Philip Ulanowsky. Volume 24, Number 31, August 1, 1997 Feature International National 30 Hongkong returns to 40 Strategic threat to China, while ‘the monkeys Australia: Pyongyang, or shriek’ London? The “shrieking monkeys” of the Despite commendable initiatives world (most of them swinging from some official quarters in around London) were not able to Australia, the London Privy deter the government of China from Council’s line is that expressed by recovering Hongkong from the U.K. Labour Party Prime Minister current-day British Empire— Tony Blair: that all Commonwealth financially and politically, still the institutions, including Australia’s Lyndon LaRouche and his wife, Helga Zepp most powerful single entity on military, shall perceive tiny North LaRouche. Earth. Emerging from the upheavals Korea as the chief strategic “enemy of the Cultural Revolution, the image” of the moment. 56 Lyndon LaRouche begins Sino-Soviet split, decades of Presidential campaign tensions with the United States, and 42 British media work The “time has come,” LaRouche many regional wars, the leaders of overtime vs. Australia said in an official statement on July China realized that their nation 18, for him to fill the leadership could not develop, without stability 43 London puts the squeeze on vacuum in the country. and peace. To achieve this, it was Kenya essential, as the late Deng Xiaoping 58 A 21-year fight: repeatedly stated, to find new, peaceful solutions for the “problems 44 Brazil’s President Cardoso LaRouche’s campaigns for left over from the past,” such as fiddles, while the nation the Presidency Hongkong. burns The late June rebellion of military 62 Explosive new 34 Cricket and the British police in the state of Minas Gerais developments in Nebraska Empire is being described as “one of the child abuse case most serious military police George Bush may be in more hot rebellions since the 1964 coup water, because a key witness in the d’e´tat,” while President Cardoso Franklin Credit Union scandal has spends his time studying up on reappeared with new evidence, and etiquette for his knighthood from is willing to testify. the Queen. 66 Starr protects Bush in 46 Cheminade: France’s Whitewater farce Jospin must solve a difficult paradox 68 Congressional Closeup An interview with Jacques Cheminade. 70 National News 53 The ‘Get Fujimori’ operation escalates 54 International Intelligence EIREconomics Currency crises lead march to October global crash by William Engdahl For more than two months, a series of currency crises and Since then, the baht has fallen more than 25% against the fears of worse to come, have devastated the stock markets dollar, with no bottom yet in sight. The problem is that the and foreign exchange reserves of a growing number of Asian Thai economy is in the midst of an intense banking crisis countries, led by Thailand and the Philippines. Are these which has yet to fully implode. When it does, it promises to shocks, tiny as they are in comparison with the scale of finan- unleash a new wave of currency crises which are likely to cial and currency markets in the United States or Europe, the spread across so-called Emerging Market countries from Asia precursor of a global financial earthquake? to Ibero-America. Moreover, Thai corporations have bor- “Right now we have a Southeast Asia crisis,” S.J.