EIR Special Reports

Kissinger's Plot to Take Over banks, and place top-down control over U.S. credit under a the Reagan Administration handful of financial conglomerates which are modeled on the The surprise naming of Henry A. Kissinger to head the Presi­ turn-of-the-century Morgan syndicate and created by "dereg­ dent's Bipartisan Commission on Central America was part of ulation." This cartel will impose economic austerity on the United a larger long-term operation by the man who has been char­ States, slashing the defense budget, and giving the Federal acterized as acting as Moscow's unpaid ambassador. The Reserve Board the power to dictate reduced levels of industrial report includes dossiers on the top Kissinger-linked people in production, wages, prices, and employment. government, including Bud McFarlane, Brent Scowcroft, Law­ Order 83-014 $250.00 rence Eagleburger, and Helmut Sonnenfeldt. Essential for un­ derstanding current battles over National Security Council, Will Moscow Become the Third Rome? Defense, and State Department policy. How the KGB Controls the Peace Movement Order 83-015 $250.00 The Soviet government, in collaboration with the hierarchy of the Russian Orthodox Church and the World Council of The Economic Impact of Churches, is running the international peace and nuclear freeze the Relativistic Beam Technology movements to subvert the defense of the West. The report The most comprehensive study available in non-classified lit­ describes the transformation of Moscow into a Byzantine­ erature on the vast spinoff benefits to the civilian economy of modeled imperial power, and features a comprehensive eye­ a crash beam-weapons program to implement President Rea­ witness account of the proceedings of the May 25 "U.S.-Soviet gan's March 23 strategic antiballistic-missile defense doctrine Dialogue" held in Minneapolis, where 25 top KGB-connected of "Mutually Assured Survival." The study, incorporating pro­ Soviet spokesmen and leaders of the U.S. peace movement, jections by the uniquely successful LaRouche-Riemann eco­ including leading advisers of the Democratic Party, laid out nomic model, examines the impact on industrial productivity their plans for building the U.S. nuclear freeze movement. and real rates of growth through introduction of such beam­ Includes a list of participants and documentation of how the defense-related technologies as laser machine tooling, plas­ KGB is giving orders to prevent President Reagan's re-elec­ ma steel-making, and fusion energy technologies. Productivity tion and U.S. beam weapons development. increases of 300-500 percent in the vital machine-tool sector Order 83-001 $250.00 are within reach for the U.S. economy within two years. Order 83-005 $250.00 Anglo-Soviet Designs on the Arabian Peninsula Politics in the Gulf region from the standpoint of a "new Yalta" The Real Story of Libya's Muammar Qaddafi deal between Britain's Peter Lord Carrington and Moscow to Why the Libyan puppet was placed, in power, and by whom. force the United States out of the Middle East. The report Examines British intelligence input dating to Qaddafi's training details the background of the "Muslim fundamentalist card" at Sandhurst, his Senussi (Muslim) Brotherhood links, and the deployed by Moscow and Lord Carrington's friends, and its influence of the outlawed Italian Propaganda-2 Freemasons relation to global oil maneuvers. who control much of international drug- and gun-running. Also Order 83-004 $�50.00 explored is the Libyan role of Moscow intimate Armand Ham­ mer of Occidental Petroleum and the real significance of the Jerusalem's Temple Mount: Trigger for prematurely suppressed "Billygate" dossier. Fundamentalist Holy Wars Order 81-004 $250.00 A detailed investigation whose findings have made the front pages of both Arab and Israeli newspapers in recent months. The Coming Reorganization of (J.S. Banking: The report documents the financing and objectives of a little­ Who Benefits from Deregulation? understood operation to "rebuild Solomon's Temple" at the Under conditions of an imminent international debt default site of one of Islam'S holiest shrines, the Dome of the Rock in crisis, the Swiss-based Bank for International Settlements, the Jerusalem. Backers of this project are associates of H.enry Volcker Federal Reserve, and the New York money center Kissinger, Swiss financiers acting on behalf of the Nazi Inter­ banks led by Citibank, Chase Manhattan, and Morgan, have national, and Protestant fundamentalists who are being drawn prepared emergency legislation to cartelize the U.S. banking into a plan to destroy the Mideast through religious warfare. system. Their aim is to shut down thousands of U.S. regional Order 83-009 $250.00

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L ______� Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editor: Susan Johnson Features Editor: Susan Welsh Assistant Managing Editor: MaryMcCourt Art Director: Martha Zoller From the Managing Editor Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. Christopher White Special Services: William Engdahl S ornepeople may have quickly forgotten the glimpse into the minds Advertising Director: Geoffrey Cohen of the military men ruling in the Kremlin which was afforded by last Director of Press Services: Christina Huth September's coldblooded shootdown of civilian airliner KAL 007, INTELLIGENCE DIRECTORS: in which 269 innocent lives were taken. That the KAL shootdown Africa: Douglas DeGroot was not a "tragic accident" or isolated atrocity, but a manifestation Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg of the threat to civilization from the Soviet military junta, is proven Economics: David Goldman by this week's cover story. LaurentMurawiec European Economics: An international team of EIR's Soviet and East bloc analysts Energy: William Engdahl Europe: Vivian Freyre Zoakos demonstrates that the entire Soviet economy is organized for winning Thero-America: Robyn Quijano. Dennis Small world ascendancy by military means, or simply the convincing threat Law: Edward Spannaus of military means. Laurent Murawiec, from our economics staff in Middle East: Thierry LaleVl!e Science and Technology: Marsha Freeman Wiesbaden, has analyzed the history of the U.S.S.R. economy from Soviet Union and Eastern Europe: the Revolution onward; Konstantin George, an expert on both East­ Rachel Douglas United States: Graham Lowry ern and Western European affairs, documents the current looting of the East bloc satellites; and EIR's Stockholm-based Soviet expert INTERNATIONAL BUREAUS: Cliff Gaddy exposes the redirection of Soviet energy policy away Bangkok: Pakdee and Sophie Tanapura from economic considerations and toward purely military ones. The Bogota: Carlos CotaMeza Bonn: George Gregory. Rainer Apel report was assembled by Editor-in-Chief Criton Zoakos, who prom­ Caracas: CarlosMendez ises that this is "only the first installment" in a full re-examination of Chicago: Paul Greenberg Copenhagen: Leni Thomsen the Soviet economy, an economy which has been unable to generate Houston: Harley Schlanger broadly based technological progress except by contributions from Lima: Julio Echeverria the West. Los Angeles: Theodore Andromidas Mexico City: JosefinaMenendez Note that Pravda marked the March 23 anniversary of President Milan: Marco Fanini Reagan's speech on "Mutually Assured Survival" by admitting (for Monterrey: M. Luisa de Castro the first time, so far as we know) that the United States has offered New Delhi: Susan Maitra Paris: Katherine Kanter to "share" the new defensive technologies with the Soviet Union, Rome: Leonardo Servadio. Stefania Sacchi and denouncing the offer as "demagogy." Stockholm: Clifford Gaddy United Nations: Douglas DeGroot The Soviets, it should be added, are counting on the kind of Washington. D.C.: Richard Cohen. ineptitude demonstrated in the interim March 30 agreement on the Laura Chasen. Susan Kokinda Argentine debt, covered in this week's Economics section, a sleight­ Wiesbaden: Philip Golub. MaryLalevee. Barbara Spahn of-hand which will only further damage the moral and material interests of both the creditors and the countries which should be

Executive Intelligence Review (ISSN 0273-6314) described as their strategic allies, rather than merely their debtors. is published weekly (50 issues) except for the second week ofJuly andjirstweek of January by New Solidarity As you will see in the transcript of EIR founder Lyndon H. La­ InternationalPress Service 304 W. 58th Street. New York. Rouche's March national TV broadcast on "Henry Kissinger: N.Y. 10019 (212) 247-8820. 26 A. Soviet Agent of Influence" presented in our National section, the In Europe:Executive Intelligence Review Nachrichtenagentur GmbH. Postfach 2308. Soviet drive will only be halted if the United States once more Dotzheimerstrasse 164, 62 Wiesbaden, Tel: (06121) 44-90-31. Executive Directors: Anno Hellenbroich, becomes a beacon of hope and a temple of liberty to the rest of a Michael Liebig despairing and desperate world. In Mexico: EIR. Francisco Ofas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 592-0424.

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TIillContents

Departments Economics

14 Agriculture 4 The U.S. banking system A disastrous U. S. export policy. after Argentina America, not just the Ibero­ 15 Foreign Exchange Americans, is setting itself up for a Decoupling Europe from the dollar. "debt-for-equity" grab on the part of the European family fortunes and their banks. 39 Middle East Report ' ' Moscow tightens its grip on Syria, I 6 Debtor's cartel formed ...to bail out banks 40 New Delhi A preliminary report on the March Zia reshuffles the deck. 30 deal whereby its fe llow debtors help Argentina "bridge" its interest 41 Attic Chronicle payments. Condemned to slow death? Documentation: Interview with an administration official close to Paul 42 Report from Bonn Volcker. Victimized by Dr. K.'s decoupling game, 8 Mexico's President launches his tour 43 Dateline Mexico Of the continent's other major PAN takes up the debtor nations. Moscow line 9 'No hope for us, the way we 56 Book Review are going' A Different Kind ofPresidency , by Speaking in the United States, Theodore C. Sorensen. Brazilian Vice-President Aureliano Chaves tells the press that the 58 Elephants and Donkeys current IMF "restructuring" programs are compounding the Is killing America's elderly one of country's problems. Hart's 'new ideas'?

59 Kissinger Watch 10 Thai banks approve Kra Canal project Will Henry decide to sue Lyndon LaRouche? At a seminar in Bangkok co­ sponsored by EIR , a green-light financial analysis was presented. 64 Editorial The spring 1984 crisis is here . 11 U.S. stance toward the Third World: hostage to the genocide lobby Congressional testimony by economist Jacqueline R. Kasun.

16 Business Briefs Volume 11 Number 14 April 10, 1984

Special Report International National

30 The Russian junta slams 46 Weinberger clears the deck Dr. K. 's back channel for beam weapons The appointment of a strong chief 32 'We need a good, expensive for the new Strategic Defense arms race' Initiative program, following the A report on the EIR -sponsored Scowcroftrecommendation for March 23-24 conference on "extreme caution." strategic energy-beam defense in Paris . 50 Why LaRouche Democrats are winning at the polls UPI Documentation: On March 26, A new shipment of shoes draws a crowd in Moscow. Jacques Chirac , the leader of the Their fight against Kissinger's Said one young Siberian student: "You know why Gaullist RPR party, calls for a returnto the White House, and their there are so few things in the stores now. It's only gotten this bad in the last two years. So much more European beam-weapons policy. platform for an American money is being used for our own military buildup." renaissance, produced primary 35 Khomeini legalizes election victories in three states this March. 18 The Soviet economy: inhuman butchery everything goes for war 52 Henry Kissinger: Soviet 36 Islamic terrorists threaten A. build-up agent of influence the West The transcript of EIR founder 22 How the West helped build 37 Egypt: an urgent test case Lyndon H. LaRouche, Jr. 's historic the Soviet war machine March 26 national television for America's policy broadcast. 25 Looting the East European toward Africa colonies for the Russian 60 Congressional Closeup imperial war effort 44 International Intelligence 62 National News 28 Military scales down nuclear program �TImEconomics •

The U. S. banking system after Argentina

by David Goldman

In 1897, an Italian anarchist drove a stiletto into the heart of released reports of a "bridge loan" to prevent Argentina from the Austrian Empress Elisabeth, who, not understanding that ending the month with more than 90 days' arrearson its loans she had been stabbed, walked several hundred paces and fell to major American banks. The loan did not materialize, be­ dead. Some observers are astonished that the money markets cause Treasury lawyers decided that the funds available for showed practically no reaction to the Argentine crisis during the exercise, the Exchange Stabilization Fund, could not be the week ended March 30--0nthe contrary, interest rates fell lent under circumstances where no future loans were in evi­ somewhat and securities prices were slightly higher-at a dence to repay the "bridge." This consideration led, finally, point where senior administration officialsand banking ana­ to the incredible charade announced the evening of March lysts are debating whether such large commercial banks as 30, in which Venezuela, Mexico, Brazil, the banking credi­ Manufacturers Hanover can survive the next several months. tors, and Argentina itselfhave each committed $100 million Earlier that week, the attention of market participants had to provide an emergency $500 million package to Argentina been misfocused on the deliberations of the Federal Open (see article, page 6). Market Committee, the Federal Reserve System body that Supposedly, this will enable U. S. bank regulators to pre­ supposedly sets monetary policy. An expected tightening of tend that the overripe Argentine loans do not have to be credit did not materialize. On Monday, March 26, the federal classified "non-performing," and that big American banks funds rate (overnightrate for interbank loans) stood at 10.5%, will not have to stop accruing the income from such loans, and had fallen to as low as 5% by Wednesday, before snap­ and permit everyone to go home happily, until the June 30 ping back to slightly over 10% on Friday afternoon;contrary inspection of the books rolls around. to expectations, the Federal Reserve did not raise its discount In reality, the Federal Reserve has merely given the Brit­ rate . ish and Swiss banks who precipitated the Argentine crisis the Temporarily lower interest rates provided a soporificto a choice of 1) blowing out the American dollar during the market whose trillion-dollar offshore branch has suffered second quarter, taking the long-term bond markets with it, or from a "slow-motion panic" since early March, when some 2) declining to continue financingeither the American banks of the major banking creditors ofArgentina found themselves or their major debtors, forcing a banking crisis. The "buyers' unable to raise fundsin the Eurodollar market without paying strike" against the Treasury's $15 billion refunding operation a significant, and dangerous premium. These include not March 29 and the weakness of the dollar throughout the week merely Manufacturers Hanover, the subject of emergency suggests that the former option is already in progress, but merger studies at New York accounting firms and at federal which way the damage is sustained is really a matter of regulatory institutions, but also some of the offshore subsi­ European bankers' whim at this point. diaries of Citibank. A large rollover date for banks' Eurodol­ The Treasury is not legally positioned to bail out the lar liabilities passed quietly March 30. Argentine mess, let alone the series of cri ses which will The solution maintaining the calm, however, holds the follow its example. The Federal Reserve's printing press will promise of major developments to come. The Federal Re­ be left with the bill. This may take the form of a frantic effort serve dumped some money into themark ets, and the Treasury to bring down banks' cost of funds to enable them to forego

4 Economics EIR April 10, 1984 Getty Oil froma consortium led by Chase, has issued an $800 • the interest on loans equivalent to their stockholders' capital which are no longer accruing, or it may take the form of a million convertible debenture (bond convertible into equity direct bailout of some major institutions. In either case the upon demand), the largest-ever convertible issued on the effect is the same, i.e., the one identifiedby Bank for Inter­ Eurobond market. The leading Swiss newspaper Neue Zurch­ national Settlements president Fritz Leutwiler last Septem­ er Zeitung commented March 28 that this issue shows "that ber. The American central bank will have to throw out its the Eurobond market, now in existence for 21 'years, has much-prized "monetary targets," and create a mass of liquid­ reached maturity," i.e., can rival the domestic U. S. bond ity to prevent a banking collapse, re-starting the run against market. the dollar, and a run by foreigners against the long-term debt The ZUrich daily added that "the transaction showed some market in U. S. dollars. new developments which could be trailblazing. For example, the creation of regional sub-consortia, reminiscent of inter­ United States a net debtor national syndicated credit business, helped to ensure the fric­ This will put the United States where the Swiss bankers tionless placement of the issue." That is, the Swiss took half want it, accelerating the already extensive domination of the whole thing (led by Credit Suisse-First Boston), demon­ U. S. financialmarkets by private European financial entities. strating what the NZZcalled the "enormous placing power of The single most important policy statement by an administra­ the Swiss banks." tion officialwas made by presidential economic adviser Mar­ Most interesting are the terms. Usually the interest on tin Feldstein. He warned in congressional testimony that by convertible debentures is low, reflecting theoption to convert the end of 1984, the United States would be a "net debtor to equity, while the premium for equity conversion is nomi­ nation," i.e., will owe more to foreigners than foreigners nal. In this case the interest rate of 11 7/8% is nearly at market owe to the United States. Previously, Feldstein's Economic levels, while the conversion premium of28.62% is unusually Report of the President released this February had argued, high. "In 1984 the U. S. current account deficit is forecasted [sic] At this date the high conversion premium will be of small to be roughly 40% the size ofthe Federal Governmentbudget importance. Clearly the Swiss are not confident that the Per­ deficit. This means that a capital inflow from abroad is fi­ sian Gulf will remain open for very long, which implies that nancing the equivalent of 40% of the budget deficit, and the WesternEurope will fall to Soviet dominion. crowding out of other sectors of domestic demand is reduced Chase Manhattan Bank is preparing a similar issue to correspondingly. International capital flows of this magni­ raise capital. The formula is somewhat different, but the tude are consistent with the increasing"integration of world principle is the same. It will issue debt with an interest rate capital markets ." determined by a spread above the Treasury bill rate, and U. S. banks passed the line into dependency on external repay part of the principal in equity. In effect, this is a con­ financing during the third quarter of 1983, when they bor­ vertible debenture at a market interest rate, rather than the rowed from the Eurodollar interbank market at a $53 billion usual lower-than-market interest rate. annual rate. Previously, American banks had been net cred­ The Swiss equity interest in the United States is of special itors of the interbank market, and, following the exhaustion significance. Large European fortunes will have to find a of the OPEC payments surplus during 1982, had become the home in the United States in the relatively near future as a principal source of new funds to the market. hedge against Russian influencein WesternEurope . This is Although data are not available after last year's third not a matter of capital fleeingto "the last citadel of capital­ quarter, it appears that the dependence of the banks on such ism," as is frequently presented. On the contrary: One-third inflows increased substantially since then. During March of all Eurobond issues are currentlydenominated in European alone, three major loans taken out by Atlantic Richfield, Units of Account (see Foreign Exchange, page 15), and some Texaco, and Socal brought $35 billion Eurodollars into the leading European financiers foresee the integration of the American banking system. EuropeanMonetary Systeminto a broader arrangement dom­ inated by the Comecon's'transferable ruble. In some re­ Signals from the Eurobond mar-ket spects, the growth of Soviet trade with Europe relative to the The biggest financing operation ever on the Eurobond collapse of world trade holds money at home. market was completed in late March, and it shows what the However, the Soviets are likely to play the game by very Swiss intentions are . The Europeanfondi are simultaneously rough rulesas long as Europe officially adheres to the Atlantic forcing up the interest rate which America must pay to obtain Alliance, and, especially, as long as France continues to foreign funds, while preparing to tum their emerging "net support the American beam-weapons initiative as a means of creditor" status into a dominant equity position in the U.S. strengthening �ATO. The Swiss and their European friends economy. This is the "debt for equity" grab, applied domest­ plan a new wave of flight capital into the United States; they ically, which the Kissinger-dominated Reagan administra­ would prefer it to occur when the dollar is weak and American tion has foolishly encouraged for Ibero-America. equity is a bargain, but they are locking up certain critical Texaco, which borrowed $8 billion in February to buy equity positions already.

EIR April 10, 1984 Economics 5 According to unconfirmedrepor ts, Mexico played a ma­ jor role in pulling the other debtor nations behind the bailout scheme in the name of stabilizing Argentina's new democ­ racy. Mexico herself has been courting unprecedented socid Debtors' cartel formed and economic chaos by shutting down large parts of her industrial base, slashing wages, and driving many Mexicans . . . to bailout banks below the subsistence level through adherence to IMF conditionalities. Mexican Finance Minister Jesus Silva Herzog, who has Valerie Rush by worked closely with his Argentine counterpart Bernardo Grinspun throughout the past weeks, has been invited to The u.s. Treasury Department pulled a last-minute emer­ address the April 1-3 meeting of the Trilateral Commission gency bailout of u. s. banks out of the hat just hours before in Washington, D.C. The commission convenes for tea at the the March 31 accounting deadline would have forced those White House on April Fool's Day. banks to classify up to $10 billion worth of outstanding loans to Argentina as "non-performing." Can the deal stick? The emergency package involved a short-term $500mil­ The International Monetary Fund strategists symbolized lion credit line to cover a portion of the overdue interest by Henry Kissinger are ecstatic at the gross display of cow­ Argentina has been refusingto pay the banks since President ardiceby the Ibero-Americans. Chase Manhattan executive Raul- Alfonsfn took office last December. Cementing the vice-president Francis Stankard, for example, burbled to the bailout scheme was an Argentine pledge to reach an agree­ New York Times: "This is unquestionably the most construc­ ment with the International Monetary Fund at the earliest tive action ever to date in the internationaldebt situation." possible moment. Yet things may take an unexpected turn.First , the emer­ Contributing to the emergency loan are 11 of Argentina's gency bailout set a precedent for viewing the Ibero-American major commercial creditor banks plus fellow debtors Mexi­ debt in global terms, both on the part of the creditors and now co, Brazil, Venezuela, and Colombia. Mexico and Venezue­ also on the part of the debtors. This precedent could be used la will each lend $100 million, and Brazil and Colombia will by the debtors to exact major concessions from the creditors contribute $50 million apiece. The Argentines themselves in the near future-ifthey decide to fight. The economic crisis will kick in $100 million fromtheir own reserves, the credi­ across the continent will not allow the debt question to be tors a final$100 million. pushed into the background. The U. S. Treasury has agreed to provide $300million to Second, there is little reason to believe that the March 30 repay the contributionsfrom Argentin a's fellow debtors. The emergency deal with Argentina will stick. The paper shuffle

U. S. commitment will be met only after Argentina signs up _ to cover up at least $3 billion in arrears was intended as a for a new International Monetary Fund austerity program. short-term bridge until the Argentines submit to an IMF "re­ Thus Mexico, Brazil, Venezuela, and Colombia will find organization." However, their government's pledges not­ themselves allied with the IMF in forcing Argentina to de­ withstanding, the Argentine people are in no mood to sign stroy its economy, if they ever are to be repaid their $300 away their country . million. PresidentAlf onsfn' s frontal assault on the Armed Forces since taking office has earned himthe enmity of nationalist 'Defusing the debt bomb' military layers, while his unsuccessful war against the Peron­ The involvement of major Ibero-American debtors in the ist trade union movement has intensifiedlabo r's resistance to bailout scheme has been hailed by creditors as an unprece­ the government's austerity policies. The executive of the dented breakthrough in the international debt crisis; onebanker CGT labor federation recently warned of "a social explosion cited by the New York Times said triumphantly, "this defuses of unforeseen consequences" if any government deals with the debt bomb," i.e., potential concerted action by the debt­ theIMF. ors to demand general restructuring of their obligations. The Argentine economy is out of control. Inflation con­ Bankers had watched anxiously throughout the previous tinues to rage at a rate of 600%annuall y, eating into whatever week while the Thero-American debtor nations used the on­ salary increases have been granted. Industrialists subject to going tour of the region by Mexican President Miguel de la price controls cannot begin to meet production costs. Every Madrid as an opportunity to denounce unfair loan condition­ major sector has been slammed by strike actions demanding alities and high interest rates, and to urge increased unity of wage increases and an emergency economic program to meet action to resolve their common debt problem. They did in the present crisis. A further turn of the screw under IMF fact unify-but to back the very institutions which have been "reorganization" could trigger civil war, with sweeping and looting their economies and undercutting their sovereignty. unpredictable results.

6 Economics EIR April 10, 1984 A: There are people who think that it is not a wise idea, like CREDITOR STRATEGY those who know that the law requires it to be a "bridge " loan and not a "pier." If you keep walking on a pier, you'll get wet. On a bridge you get to dry land at the other side .... Funds are available for bridging.The way we've done it for Brazil and Mexico, they were always a bridge to future bank

or IMF loans. . . . 'They willtr y to In the case of Argentina, if they have not reached some type of agreement with the IMF and with the banks, then walk on water' we're going to have a tough time convincing Congress, if not the people in the administration, of the problem.The Con­ This March 30 interview with a source close to Federal gress is saying, "Why are you giving Argentina the money­ Reserve Chairman Paul A. Volcker was provided to EIR by the banks don't want to, and there's no clear indication that a journalist. the banks aregoing to?" They haven't said it yet because they haven't been asked, but people in the administration object Q: I hear something really big is up on Argentina. to using ESF [Treasury Exchange Stabilization Fund] loans. A: I don't think this is going to be resolved by the end of the There are obvious problems: you won't get the funds back, month .... I think it's going to be a clear indication that so it is not a bridge. I don't think a bridge loan will be there is a round of new debt issues coming up that are going forthcoming. to address different issues than have been addressed in the I think they are going to wait and see what happens, past. That's what this is the beginning of. People think it's Manny Hanny be damned; and Manny Hanny may very well an accounting problem, that if Argentina and the IMF come be damned at the rate things are going.... to an agreement we can solve the thing, but I don't think so. Q: But no bridge loan. Q: When are they going to consider that Argentina should A: The feeling now is: The markets haven't reacted, maybe have paid but didn't? we can resolve this in the first few weeks of April; let's not A: Argentina was supposed to have paid as long ago as panic. October. The point is-and this has nothing to do with the regulators, but the regulations, which say that if the banks Q: But you said there would be no bridge loan because it have not beeq paid interest in over 90 days, [the loans] are would be a "pier." non-performing, unless they fall under the condition that they A: Well, if it's a choice between either a cliff or a pier, areeither in process of being paid or well collateralized.Now maybe they'll take the pier. At least they can walk on water if some magician out there can convince the regulators that for a little while.... those conditions apply, the banks don't have to write those loans off. Q: Argentine finance minister Grinspun said he was going to club with Brazil, Mexico, and Venezuela and present the Q: Who's the magician?Who could do that? banks with a $250 billion lump sum to deal with. A: Let's say the IMF said, "We've struck a deal with them, A: I think people are confident at this point that Mexico and but it's going to take a week for us to disburse the funds and Brazil won't be foolish enough to throw their lot in with the them topay interest, but don't worry, they're in the process Argentines. They're very much content with letting the Ar­ of repayment. " gentines set the precedent, and then seeing if they can get a Q: Do you think the IMF is going to do that? good deal. A: No; I'm just saying this is the only way around the 90- At this point, I think they'd like to see the Argentines be day limit. . .. If some time between now and the 10th of the successful, but they don't want to suffer any consequences month, someone struck a deal that indicted the banks were the Argentines may face in the outcome. . . . De la Madrid going to get paid, then it would have to happen. will be in Argentina on Monday. See what they have to say to each other. He was in Brazil Wednesday and Thursday. Q: What about Regan?Is he going to give Argentina a bridge My boss was down there at the same time. . . . Basically we loan? don't have any real problem with De la Madrid. A: If he was, I wouldn't be able to talk about it. Q: What is he saying? Q: He told Manufacturer's Hanover that he wasn't, but he A: Oh, trade, EI Salvador, de!?t problems. We don't see a told some people very high in the administration that he was. problem with the debtors' cartel.An Argentina is acting on Or at least, he said that he wanted to. its own.

EIR Apri11O, 1984 Economics 7 provocatively asked Democratic presidential candidates how they would react to a communist insurgency in Mexico. The day de la Madrid left Mexico another scandal erupted as the following April 2 Newsweek story hit the Mexican press: "President Reagan has ordered the State Department Mexico's President to play hardball with Mexican President de la Madrid to win Mexican support for U. S. policies in Central America." launches his tour National Security Decision Directive (N SDD) 124 was signed by Reagan in March, the magazine reports , ordering the State Department to write a "communication and diplo­ by Robyn QUijano macy master plan" to change Mexican opposition to Kissin­ ger's war plans in Central America. The CIA will arrange for Mexican President Miguel de la Madrid ended the firstleg of Central American leaders to "call upon Mexican officials," his four-nation South American tour with an attack against the U. S. embassy will "discreetly assemble a list of de la Henry Kissinger and his policies of destabilization, wars, Madrid aides whom Washington should try to influence," and invasions. and Reagan will tell de la Madrid during a May visit to the After signing a communique with Colombian President United States: "The price for continued U. S. economic aid Belisario Betancur backing economic integration of the con­ to Mexico is support for Washington's policies in Central tinent and pointing to development as the solution for Central America." America, the Mexican President condemned "those who con­ EIR founder Lyndon LaRouche warnedrecently that the spire against the peace of nations, and above all against aim of Kissinger's policy is to set up a U. S. invasion of its democracy and liberty, and who assume the most retrograde neighbor and ally. If carried out, NSDD 124's "hardball" is positions. We Latin Americans are protagonists of contem­ a giant step toward that plan. porary history and not the objects of this history. To play this It was Victor Acosta, president of the Colombian Labor role we are prepared with the best weapons a nation can have Federation (UTC), who proposed to de la Madrid that Ibero­ . . . reason and law. . . ." Kissinger is known in' Ibero­ America take the two steps essential to dealing with the America for having told Chilean foreign minister Gabriel economic crisis. Speaking at a luncheon with 50 representa­ Valdes in 1969 that "nothing important can come from the tives of Colombian labor, political parties, and business, South. History has never been produced in the South." Acosta told the Mexican President that Ibero-America must The question of Thero-American sovereignty, indepen­ respond with a joint debt moratorium and regional coordi­ dence, and the need for a well-defined security pact were nation "to defend our economies. " discussed. In response to the not-so-secret unpublished por­ "The challenges of today newly unite us ....Economic tion of the Kissinger Commission report on Central America problems are at the heart of all the others. This is the moment which recommends a U. S. invasion of Nicaragua, Betancur to . . . seek solutions through collaboration and joint action," and de la Madrid agreed that the four presidents of the Con­ said de la Madrid in Bogota. tadora Group (Mexico, Colombia, Panama, and Venezuela) Betancur commented emphatically: "Latin America has would immediately meet "in order not to suffer such a defeat become a net exporter of capital. ...This cannot continue, as during the Malvinas crisis when Latin America managed and Latin America must demand a change in the rules' of the no mOre than a moral protest," reports Mexico's Excelsior game of the international economic system. It is urgent to newspaper. stop Latin America from continuing to pay more principal Mexico and Colombia, the northern and southern flanks and interest than it receives in new loans, at the expense of of Central America, are targeted for destruction should the the per capita income of the 375 million inhabitants of our region become the center of East-West conflict, the new region, income that dropped by 5% in 1983. We need new Vietnam, that Kissinger is planning. resources with long payment terms and reasonable interest In his greeting to the Mexican President, Belisario Betan­ rates. curdescribed the labors of Contadora and attacked "the United "The last half-point increase in the prime rate can cost States, the Soviet Union, and Cuba for supplying arms to the Latin America nearly $1.5 billion in the next 12 months. region ....[We must stop] all of our nations from being These irrational levels of interest rates are a result of the U. S. pulled into an East-West conflict, or from being victims of model of development, which is now financedin significant such a conflict," stated the Colombian President. portion through the contributions of the developing coun­ De la Madrid's ministers expressed outrage last month tries. If Latin America were working with the interest rates when the U. S. Southern Command's Gen. Paul Gorman which the U. S. paid between 1870 and 1930--2.3% over charged that the Mexican government was covering for sub­ inflation-it would stop the transfer of nearly $15 billion a versives in the region, and Kissinger crony Barbara Walters year."

8 Economics EIR April lO, 1984 self compelled to make incursions into the American econo­ BRAZIL my, not to intervene for its own sake: but to bring back an ordering principle. "He was compelled to take initiatives in areas which were unattractive to private enterprise, but were fundamental to the American economy from a broader perspective. "For example, the initiative to create the Tennessee Val­ ley Authority . . . the firststep toward furnishingelectricity on a large scale to permit the rec:uperationof a region which had inexorably been condemned to extreme misery. . . . "It was evident that no private electric company would 'No hope for us, the make that kind of investment. What was needed was the vision of a statesman who would discern the future rather way we are go ing' than focus on the present. A businessman, battered by the here and now, generally tends to look at the day-by-day as though he did not need the future. He tends to see the day­ If there were direct elections for the Brazilian presidency this by-day and to project tomorrow as a function of today. The year, Vice-President Aureliano Chaves would win, accord­ vision of a statesman extends a bit beyond that." ing to the latest polls. But direct popular elections are unlikely. Chaves said that he gathered from his brief meeting with SiloPaulo industrialists and military nationbuilders who President Reagan that Reagan "comprehends President Fi­ fear that theIntemational Monetary Fund's policieswill make gueiredo's efforts to consolidate democratic life ... and Brazil into another Iran view Chaves as the statesman capable comprehends that Brazil must resume development to com­ of bringing national unity to face the crisis. ply-as it wishes to d

'Brazil's IMF agreement cannot work' 'To roll over debt is to increase it' Chaves visited Washington and New York on March 15- "For us to have satisfactory results, we must change the 23. He addressed the debt question at a press conference: methodology being used to balance our foreign debt. . . . "The way the agreement [of Brazil] with the International The initiative on this must come from us. The initiative must Monetary Fund is now set up, the country cannot comply come from the debtor countries, especially Brazil. ... with its internationalobligati ons. How are we going to accept "There is no hope for Brazil the way we are going. We paying our internationalcommitments by stopping, amputat­ are taking palliatives; we are apparently solving the problems ing, and intercepting our productive capacity? We have to of the moment, today's problems, and aggravating tomor­ chose new paths." row's problems. Rolling over the debt does not mean paying The next day, in New York, what he had to say about the debt; it means increasing the debt. . . . Franklin Delano Roosevelt, whose home he had just visited, "Brazil cannot live for long with a recession. Develop­ convinced reporters he was projecting his own program for ment must be resumed; thus any foreign debt payment agree­ Brazil: ment which aggravates the recession in Brazil is a harmful "When Roosevelt replaced president Herbert Hoover in prescription. " 1933, he found the American nation drowning in a terrible EIR asked Chaves whether the impending visit of Mexi­ recession. Of about 120 million people, 17 million were on can President de la Madrid to Brazil would bring into play the unemployment index. Ameri�an industry was hit by a "the new methodology for negotiating the foreign debt" which sharp and sustained drop in production. American agriculture Chaves had called for. Chaves replied, "I think the visit of which always had been a bulwark was in a state of enormous President de la Madrid to Brazil is extremely important. . . . depression. American foreign trade had f,\llen to dangerous "I think an exchange of information, of points of view, levels. There was enormous social unrest and worrisome and even of what could be called doctrine would be very national demoralization. useful. The [debt] negotiation process may not be a joint "In the first 100 days, Roosevelt sent Congress 15 one-since each country has its own peculiarities-but the bills ....He restored confidence ...through the fireside doctrinewhich will inform the negotiations could have many chats ... . points of agreement .... "The American recession coexisted with an important "I think that Mexico is having a very sure vision of its fact, the economic liberalism carried to an extreme in that reality and is being extremely cautious about the way in period. which it is going to exploit its natural resources. It is being "President Roosevelt was a man who ...was committed careful to avoid its natural resources being exploited in a to free enterprise, to the market economy, but he found him- predatory, injudicious manner."

EIR April 10, 1984 Economics 9 neers and planners of Tippets Abbett McCarthy Stratton (TAMS), RobertR. Nathan Associates, Inc., in collaboration with Lawrence Livermore Laboratory. LaRouche proposed a two-lane, sea-level canal without locks through which tank­ ers up to 500,000 dwt could pass at normal speeds. Prefera­ bly, excavation of the canal would be accelerated by use of peaceful nuclear explosives (PNEs). TheEIR-FEF plan called Thai banks approve for integration of one or two deep-sea ports and associated industrialzones at either end of the canal. Kra Canal project At the March 19 meeting, Uwe Parpart-Henke, FEF re­ search director, presented revisions of the canal project and proposalsfor its financing. by Gail G. Kay and Sophie Tanapura Excavation and construction costs were taken from the 1973 TAMS study, and put in 1983 constant dollars. The A spokesman for Bangkok Bank, Thailand's number-one results, Dr. Parpart reported, led the EIR-FEF team to reject bank and one of Asia's largest, gave the green light March its previous preference for the 500,000-dwt ship size in favor 19 to a canal-building project that promises to transform the of a 250,000-dwt two-lane canal, using PNE methods of economies of the Indian Ocean-Pacific Basin region. The construction. Estimated cost would be $10.4 billion (1983). construction of a sea-level canal across the Isthmus of Kra, Should the Thai government prefer not to use PNEs, the is a key feature of the "Great Projects " global infrastructure­ second best option would be a one-lane canal capable of building program outlined by Lyndon H. LaRouche, Jr. in handling 250,000-dwt ships, at an estimated cost of $9.93 an EIR Special Report published in 1983. billion. At an invitation-only brainstorming session on March 19 The EIR-FEF study anticipates a dramatic increase in in Bangkok, the Fusion Energy Foundation (FEF) and EIR general cargo traffic moving westward toward the Indian responded to a Thai governmentrequest to review the financ­ Ocean and Europe, whereas the 1973 TAMS study predicted ing and economic feasibility of the Kra Canal. Present were a significant increase in eastward-bound oil traffic from the 40 top corporate executives, governmentofficials, and mili­ Middle East, i.e., toward Japan and the United States. This tary observers. The corporate participants included: the three difference argues for a two-lane canal. top shipping firms in Asia, Maersk Lines, East Asiatic and Sealands; Bangkok Bank, Thai Farmer's Bank, and Chase Financial mechanisms Manhattan Bank; and interested Japanese firms, Mitsui and Parpart-Henke proposed a six-point, two-level financing Mitsubishi. package. The first level involves multilateral funding insti­ In July-August 1983, LaRouche and some of his ElR­ tutions such as the World Bank and the Asian Development FEF associates made a "fact-finding " tour of Japan, India, Bank and interest-free loans from the United States and Ja­ and Southeast Asia; in August, a conference on the Asian pan, the two primary foreign beneficiaries of the canal. The "Great Projects" was held in Washington, D.C., and in Oc­ largest share in this category would have to come from the tober 1983, a conference in Bangkok was cosponsoredby the import-exportbanks of the leading advanced-sector countries Thai Ministry of Communications. In January, Pakdee and and commercial banks. Ultimately, commercial banks would Sophie Tanapura of ElR's Bangkok bureau toured six U.S. be expected to provide 40-50% of the total value of the cities to sound out government officials, corporations, and project. others on support for the Kra Canal. The second level would come from regional and Thai sources, preferably both government and private, and gov­ Assumption: expanded trade ernment-sponsoredpreferential participation in construction The premise of LaRouche's Asia program is that under contractsfor Thai companies. conditions of rapid rates of global economic growth made In commenting on theEIR-FEF study, Dr. Nimit Nonta­ possible by adoption of his proposals for a new world eco­ punthawat, vice-president and chief economist of the Bang­ nomic order, the concentration of ocean-bornefreight move­ kok Bank and manager of the bank's Economic and Market­ ments will make the Indian and Pacific Oceans' basin the ing Research Center, reviewed the increased debt burden to center of the world's economy. The main bottleneck to the Thailand over the decade required for canal construction and doubling or tripling of such traffic by the tum of the century other infrastructural commitments. His conclusion was that is the constricted passage past Singapore through the Straits after 10 years, Thailand's debt-service ratio would be about of Malacca. The remedy is a large, high-speed, sea-level 2 or 2.5 to one, based on an estimated total debt of $38 billion canal through the Isthmus of Kra. and an export-earning potential of about $15 billion. This is The EIR-FEF proposal, as presented at the earlier confer­ dramatically better than the Philippines, where the debt-ser­ ences, drew on a 1973 feasibility study carried out by engi- vice ratio is 5 to 1.

10 Economics EIR April 10, 1984 U. S. stance toward the Third World : hostage to the genocide lobby

Testimony given befo re the Senate Foreign Relations Sub­ sociation for Voluntary Sterilization, the U.N. Fund for Pop­ committee on Western Hemisphere Affairs on March 20 put ulation Activities, and related agencies in Central America. evidence before the public that U.S. fo reign policy toward In 1978, AID inserted Sections 102 and 104(d) into the for­ Central America in particular, and the rest of the developing eign Assistance Act to require that countries receiving our world generally, is being controlled by a "population-con­ aid must demonstrate a commitment to population control. trol lobby" that is running wild. This, of course, is the basis of those so-called "requests" for Dr. Jacqueline R. Kasun, from the Economics Depart­ "population assistance" which AID reports from countries ment of Humboldt State University in California, presented receiving our aid. They are required to "request" population well-documented testimony about the secret conditions the assistance. population controllers have placed on U.S. aid to the devel­ These strong statements and forceful actions by AID , op ing sector--conditions that have turned those countries however, represent the beliefs of a rather small but superbly away fr om the United States. organized and well-financed (with U.S. government funds) EIR does not totally agree with Dr. Kasun, particularly in her recommendations on economic policies fo r Central America; she also neglects to mention that these population­ What 'population problem' in reduction conditions are the core of the Kissinger Commis­ Central America? sion report on Central America (see EIR, Feb. 14). But she presents excellent evidence of the fa ct that these conditions Personsper GNP per square mile capita, are not only based on fraudulentassumptions, but also are Country or State 1982 dollars, 1981 bound to turn the rest of the underdeveloped sector against CENTRAL AMERICA 121 n.a. the United States. Honduras 84 $ 600 Dr. Kasun'sfootnotes are available upon request. EI Salvador 574 650 Nicaragua 47 860 .. .In response to these growing, multiple problems cre­ Guatemala 163 1,140 ated by misguided central planning for development and un­ Costa Rica 112 1,430 favorable world economic conditions, the U.S. Agency for California 151 n.a. International Development [a branch of the State Depart­ India 570 260 ment] has since the mid- 1960s insisted that CentralAmeric a, China 285 300 along with all other countries receiving our foreign assis­ South Korea 1,080 1,700 tance, must control its supposedly "excessive" population West Germany 643 13,450 growth. Positing, as Richard E. Benedick, State Department Japan 825 10,080 coordinator for Population Affairs, has put it, that controlling New Jersey 986 n.a. population is a "matter of urgent global priority," that "the Rhode Island 898 n.a. 'right' to multiply indiscriminately represents a misplaced morality," and that "strenuous efforts will be required to Source: Population densities from Statistical Abstract of the United States, reach the two-child norm," AID has poured millions of dol­ 1982-83; GNP figures from World Bank, World Development Report 1983. lars into the population-control activities of the Pathfinder Fund, the Population Council, Planned Parenthood, the As-

EIR April 10, 1984 Economics 11 special interest group. They do not represent the consensus support for these programs would collapse if the United States among development economists. The. assumptions of the stopped financing them and forcing them as a condition for population-control lobby have been strongly criticized by receiving our aid. It is reported in Mexico that the price which many distinguished economists, including Julian Simon, the Mexican government has to pay for InternationalMone­ Goran Ohlin, Mark Perlman, Peter Bauer, Fred Glahe, Colin tary Fund assistance in solving its recent balance-of-pay­ Clark, and Richard Easterlin. The fact is that world resources ments crises brought on by misguided economic "planning" are fully adequate to permit economic development and com­ was to agree to a vigorous drive for population control. The fortable living standards for all peoples. Less than half of the Mexican government is now committed to reducing popula­ earth's arable land is in use, and yields could be increased tion growth to I % per year by the year 2000; this implies a many times over. World agricultural resources are capable limit of two children or less per family, depending on how of feeding 10 to 25 times as many people as now live on soon Mexican families comply with the program to reduce earth, using present agricultural methods. Supplies of indus­ births. AID has stated that the "sensitivity of population trial metals and energy are not running out but are increas­ programs" is so great that it is desirable to lisethe "multilat­ ing ....The world's entire population could be settled in eral agencies"-in Mexico's case, apparently, the IMF-as the state of Texas with a large suburban home with front and surrogates for AID itself in many cases. backyards for each three-person family, and all the rest of the The response of AID and its cl ient agencies in the popu­ world would be empty. lation-control network to what they admit to be widespread There is no economic evidence, though many economists resistance is to try harder-to spend more money and apply have searched for it, that rapid population growth retards the more leverage. Benedick insists that "the U. S. should seek growth of the gross national product or restrains investment. to keep the population problem at the forefront of the world's Investment depends not on the birth rate but on opportunities agendas" and that we should "assign ...a popUlation officer for the efficient and profitable use of economic resources. in the staffing of every Embassy where population facts are Countries which offer these opportunities will attract invest­ important"-that is, of course, in his view, everywhere. ment capital, and the data show that countries with rapidly Moreover, the drive for population control in countries growing populations have achieved just as high rates of in­ receiving our aid is only one of the goals of the population vestment and equal or better rates of output growth, as com­ activists in the Department of State. State Department Doc­ pared with countries having low population growth .... ument NSSM 200, classified in 1974 and not declassified There is resistance to AID population control in Central until 1980, clearly states that population control is to prevail America, as there has been throughout the world. Chris also in the United States: Hedges in the Christian Science Monitorof January 13, 1984 Constructi ve action by the U. S. will further our described the bitter response of EI Salvadorans to AID's objectives. To this end we should: ...Urge the adop­ sterilizations drive which uses a quota system to achieve more tion . . . of specific popUlation goals including re­ than 20,000 sterilizations a year in that country, reportedly placement levels of fertility of DCs and LDCs by without adequate provisions for voluntary consent. In a coun­ 2000. . . . After suitable preparation in the U. S. , an­ try where "death squads" operate widely, is it realistic to nounce aU. S. goal to maintain our present national expect that a sterilization drive, promoted with all the diplo­ average fertility no higher than replacement level and matic and financial leverage of AID, should observe the · attain near stability by 2000. niceties of true voluntarism? The Agency for InternationalDevelopment is well aware The document furthermore states that , to attain these of the resistance which its population-control programs elicit goals, "mandatory programs may be needed." In the mean­ in many countries; AID officials have spoken frankly about time the population activists seek now to increase their bit­ it. Richard Benedick has reportedextensively to Congress on terly resisted programs in Central America by exploiting the the "sensitivity" of these programs and the "lack of commit­ need for emergency assistance in that troubled region. ment" and "opposition" to them on the part of foreign peo­ Bizarre as it may seem, the plain fact is that the foreign ples. One of the first acts of the Sandinista government in policy of this great nation has been, is being, used-"taken Nicaragua was to close the despised AID birth-control clin­ hostage" may not be too strong a term-by a very special ics. The Sandinistas declared that from now on birth control interest group with a monomaniac world view, the belief was to be the private business of citizens and not the business that what it calls "overpopulation" is at the root of all human of the government. Similarly, soon after the United States' problems and that the United States must lead a world cru­ ignominious ejection from Iran, the Khomeini government sade against population, regardless of cost. Such fanaticism made this same symbolic gesture, closing the AID-financed must not be allowed to dominate or to use our foreign policy. birth control clinics which had spearheaded the movement The United States needs secure peace in Central America, for population control in Iran. not an AID sterilization drive to be defended and promoted One AID memorandum of 1982 frankly stated that all at the risk of our sons' lives ....

12 Economics EIR April 10, 1984 Notice Currency Rates Special Advance Notice of Sale The dollar in deutschemarks New York late afternoon fixing 1200 Coin MS -65 2.80 Morgan Dollar Collection 2.7S ,,"- JL to be sold 2.70 � 1" starting April 16, 1984 2.65 V V \ 2.60 \i0oi.. r i"'i"ol\ NEW YORK-We have just completed negotiations 2/8 2115 2/22 2I29� 3/21 3ii8 on an extensive accumulation of Original Morgan Silver Dollars. / Although we have not yet completed an inventory The dollar in yen of all the coins that are to be offered, we can tell you New York late afternoon fixing now that there are over 1200 coins in this sale worth

260 in excess of $250,000. There are coins in all states of preservation ... with 250 many of the coins in Original Gem Uncirculated (MS-65) condition. 240 .-. Most of these dollars will fall in the price range of r-' - 230 I-/' f"\ $95.00 to $400.00 each. There are over fifty dif­ ferent dates and mint marks represented. 220 '- � Morgan silver dollars have been one of the 2/8 2115 2/22 2/29 3/7 3/14 3/21 3/28 strongest of all hard money investment vehicles for the past fifteen years. They have appreciated over 2000% in the last 10 years ... and in 1983, Mint State 65 Morgans increased over 43%. The dollar in Swiss francs Most forecasters agree that these coins will go up New York late afternoon fixing . another 300% over the next four years.

2.25 We will be offering these coins starting at 9:00 A.M., Monday, April 16, 1984 on a first -come, first ­ 2.20 � �- � lA served basis at only 15% under current Grey sheet price. The prices will be determined by quotations 2.15 '\.""' - V' from the Coin Dealer Newsletter ask price less 15(}h . 2.10 \.� DO NOT MISS OUT. We will only send .a complete price list to those who express an interest. 2.0S 2/8 2/1S 2/22 2/29 3/7 3/14 3/21 3/28 Ca ll immediately (o r a list! Call (800) 334-0854 Ext. 810 (In N.C. (800) 672-0101). We will be offering Gem Uncirculated MS-65 The British pound in dollars Morgan Dollars at the following prices: 1886-P at New York late afternoon fixing $145.00, 1887-P at $150.00, 1879-S at $150.00, 1878-S at $175.00 , 1883-CC at $245.00, 1898-0 at 1.50 $285.00, 1899-0 at $315.00, 1878-CC at $330.00, ... 1883-P at $380.00, 1881-P at $395.00 . 1.45 ( \r- .,..,.. � - ""'" . All requests for price lists will be processed as 1.40 -" IV they are received. 1.35 Send this ad (not a copy) to Security Rare Coin Center, 34 Milford Drive, P.O. Box 467, Central 1.30 Islip, NY 11722, or call (516) 234-6885, (800) 2/8 2/15 2/22 2/29 3/7 3/14 3/21 3/28 344-0854 , Ext. 810 (In N.C. (800) 6 72-0101). Advertisement

EIR April 10, 1984 Economics 13 Agriculture by Cynthia Parsons

A disastrous U.S. export policy for 20th-century "East India Compa­ The State Department and conglomerates are pursuing "fo od nies, " such as Sears World Trade, Peabody World Trade, and Bank­ control" instead of expandedfa rm sales. America World Trade Corporations to increase their control of export mar­ kets, using barter and countertrade. For example, in 1983, the grain giant America's farm exports have fallen The second bill, signed by the Cargill bartered to provide Ecuador in volume for the past four years; they President, provides a measly $90 mil­ with rice in exchange for barter rights are estimated at 140 billion tons for lion in food aid for Africa. It increases on Ecuadoran output. 1984, down 15% since the 1979 all­ fundingfor the PL 480 program, Title TheU. S. government has only one time high of 163 billion tons. Despite II, the cruel and unproductive "food barter agreement, an exchange of the latest U. S. com sale to the Rus­ for work " program. Commodity Credit Corporation non­ sians of400,OOO tons, U. S. feed-grain Thethird bill, HR4072, waspassed fat dry milk for 1 million tons of Ja­ exports have declined 22% since 1979, March 22. It also increases funds maican bauxite. If the administration though a slight increase is reported for available for PL 480 by $150 million has shied away from state-to-state 1984. in FY84, adds $500 million in guar­ barter and countertrade arrangements, Easy as it is to blame the strong anteed export loans from the Com­ it is encouraging the private sector to dollar and the world "recession " for modity Credit Corporation, and ex­ make such deals which are now said the decline of agricultural exports, if pands the direct-credit program by to account for nearly 40% qf Third Congress or the administration were $100million for FY85 . World trade and 30% of world trade. serious about reversing the decline in Mere expansion of export credits Commerce Undersecretary for In­ U. S. exports, they could take action will not help much so long as the con­ ternational Trade Lionel Olmer, to expand the markets by promoting glomerates and the IMF are running speaking at a Financial Times-spon­ agro-industrial growth abroad and the system. Ninety percent of all PL sored conference in January, noted that supplying export credits. Instead, they 480 contracts are given to the seven the government had considered a pro­ areallowing the cartels to take advan­ "major " companies in the commodity posal to exchange U.S. butter for tage of the collapse and consolidate cartel-Cargill, Continental, Nestle, nickel from Russia and to trade agri­ their control of the markets. This in­ Bunge, Dreyfus, Andre, and Phibro. cultural products for Mexican volves the increasing use of counter­ The program has been turned into a petrochemicals. trade (an elaborate form of barter in vehicle for the State Department, There is growing pressure at the which the corporate giants can often working with the International Mon­ USDA and among farm organizations impose not only commodity prices but etary Fund, to provide scant amounts for reviving and funding the GSM- conditionalities). of food to "approved " nations in a 3011 program, which allows a PL 480 Congress has dealt with three combined blackmail and triage oper­ recipient to use the funds for food pieces of export-related legislation: the ation. The State Department's Agen­ infrastructure development. Export Administration Act, the Sup­ cy for International Development is This would not only increase ex­ plemental Appropriations Bill for Af­ withholding food from famine­ ports, but develop long-range markets rica, and the Agricultural Amendment wracked Bolivia on the grounds that through construction of grain eleva­ Act. The firstpassed the Senate March aid would discourage local farmers--­ tors, roads, railways, and so forth, to 1, and awaits conference committee who are starving and cannot plant improve importing and processing action. The bill is aimed to encourage crops. capabilities. U. S. exports while attempting to limit What prevents many countries The last time the program was exports of high technology products from importing is not only the lack of funded was in 1979 to enable Israel to for national security reasons. The final foreign exchange but the IMFlWorld build a grainstorage facility. Why does version could give the special trade Bank conditionalities which insist that Congress refuse to revive the one gov­ negotiator more control over embar­ they forego imports in order to pay ernment program that could assist the gos of farm exports, at the expense of debt. Thus their buying power has underdeveloped sector to make large the U. S. Department of Agriculture grossly deteriorated. medium-term increases in its import (USDA). This situation has opened the door capability?

14 Economics EIR April 10, 1984 Foreign Exchange by Kathy Burdman

Decoupling Europe from the dollar on Europe, "you would have to devel­ Kissinger's business partners expand use of ECUs- fo r political op a whole new transaction currency to maintain capital flows within the rather than financial reasons? EM S," a Morgan Guaranty economist told EIR at the end of March. "Practi­ cally speaking, they would have to use ECUs and totally change the currency flowswi thin Europe." W hen Henry Kissinger wrote in of 4.35 billion ECU-bonds has been "ECU transactions, of all types, Time magazine March 5 that the United issued. are alreadyin the bilions of dollar ECU States might remove its troops from U. S. negotiators at the GAITtalks equivalent per year," a top source at Europe, the financial ground had al­ in Geneva in March were shocked the Federal Reserve informed me ear­ ready been laid for the decoupling of when European Commissioner Vis­ lier this month. ECUs are being used Europe from the U. S. dollar. count Etienne Davignon demanded for trade and intervention. The mechanism is the European that trade quotas be set in ECUs, not "The European central banks are CurrencyUnit (ECU-pronounced ay­ dollars, an aide to U. S. Special Trade already using the ECU and the EM S koo) , the currency numeraire of the Representative Bill Brock told EIR . currenciesas the transaction currency, European Community set up in 1978 "They are using the ECU to set U. S . including as currencyof intervention, at the foundation of the European export quotas to Europe, not the dol­ sidestepping the dollar entirely," the Monetary System (EM S) . ECUs are lar, and this will cut U. S. exports. Fed man said. The European central not printed legal tender, but a currency They're using the 1982 dollar-to-ECU banks, especially the smaller ones like cocktail of the major EM S domestic rate, which means that since the ECU Belgium with less dollar reserves, are currencies, originally conceived to is worth less now, U. S. exports to Eu­ pushing the ECU market in Europe promote trade and economic growth rope will be even smaller than the quo­ like crazy. They are doing a lot of in Europe. At its foundation, the EM S tas. But why are they doing it, really?" exchange intervention in ECUs; they and its ECU were hailed by EIR and The BI S argues that the U.S. dol­ buy French francs for ECU bank bal­ others as a potential vehicle to put Eu­ lar is too unstable to finance trade. As ances, and the traders sell the ECU rope back on a gold-and-dollar stan­ one banker said, "The dollar will fall bank balances to the West German dard, and bind Europe closely to some more , then rise again, and fall central bank, for example, if they want Washington. later this year. German marks. Nobody prints ECUs, Instead, as Kissinger's private "They lose both ways with a dollar it's unnecessary . " business partner Lord Peter Carring­ system. The Europeans were first hit The European central banks are ton took over NATO, Carrington and by the rising dollar, when they had to also "pushing the European banks to BI S chief Fritz Leutwiler have over absorb a collapse of their imports and lend and the companies to financetrade the past year promoted the ECU as a inflation to their import prices. Now in ECUs," he pointed out. "Compa­ currency Europe can use instead o/ the they've absorbed that, the dollar is nies are using the ECUs to pay their dollar. (See EIR , Oct. 25, 1983.) collapsing-which won't help them, trade regularly. A German company More than 200 European banks because they were just getting to where exportsto France, the French compa­ now take accounts denominated in they could use cheap European cur­ ny pays in an ECU bank balance, and ECUs, and hold as much as 10 billion renciesto sell more European exports." the German company holds the ECU ECUs in deposits, Yves Le Portez of New York Federal Reserve Presi­ bankbalan ce. Theyuse it later for their the European Investment Bank esti­ dent Anthony Solomon threatened in foreign purchases. When the German mates. Interest rates on ECUs are low­ a speech last year that Europe is "tired company needs cash to pay their er than those on U. S. dollars. The ECU of being whipsawed by U. S. interest workers, they can go to the central is now the third largest currency of rate and exchange rate fluctuations. bank and get German marks, but oth­ world bond syndication after the dol­ They may seek ways to insulate them­ erwise they just hold ECU s." lar and the German mark. During selves behind various kinds of trade Otto Wolff von Amerongen, dean 1983, banks, corporations, and inter­ barriers, exchange controls, and cap­ of German banking and industry , national organizations borrowed 2.35 ital controls." wants a parit¥ for the ECU with the billion ECU s, and since 1981 a total In order to impose capital controls Soviets' transferable ruble.

EIR April 10, 1984 Economics 15 BusinessBrief s

European Agriculture Refusesto Bail Out EEC . " (The British still A water-management crisis faces much call the EC the European Economic of the nation due to lack of investment in German farmers protest Community . ) water infrastructure for over 25 years . Dr. "Failing in its attempt to prevent the es­ Grauerholz asserted that "all civilization is EC price cuts tablishment of the EC, Britain joined in or­ the history of the increased ability to keep der to sabotage it and destroy it from the what you take in away from what you put Twenty thousand enraged and desperate inside," as a French journalist put it. Prime out. When there is no longer the means to farmers from all over West Germany gath­ Minister Margaret Thatcher demanded a $1 maintain that separation, contamination ered in the Dortmund Westfalenhalle March billion-plus cut in the U.K. budget contri­ which has led historically to the deadliest of 25 to protest the European Community's re­ bution, and her partners bent over back­ man's diseases has set in." Drops in popu­ cent cuts in price supports for agricultural wards to appease her, accepting a $740 mil­ lation have always preceded the onset of goods . Last year alone, 20,000 farmers-a lion rebate . Yet British Foreign Minister pestilence, including the 14th-century Black rate of 60 per day-were forced to stop Geoffrey Howe announced that Britain Death that killed three-quarters of Europe's farming, and now the situation is worse . would refuse to pay a scheduled $160 mil­ population. But leaders of the German Farmers' As­ lion advance payment to the budget , hasten­ The collapse of infrastructure in Penn­ sociation (Bauernverband) failed to put for­ ing banknipting the EC . sylvania is demonstrated by fiscal cutbacks ward the basic issue facing agriculture: the The British government is demonstra­ which have left only 35 water quality in­ need for every nation's farmers to increase tively studying ways of withholding all pay­ spectors to check the state's 7,000 water production to reversethe growingworld food ments to the EC budget and "preparing for a systems to prevent potential outbreaks of crisis. war of attrition with its EEC partners ," ac­ typhoid, cholera, or hepatitis, any one of The organization's president, Herr cording to the Financial Times. Despite the which could enter a fecal-contaminated water Heeremann, resorted to a demagogic speech undisputably disruptive role played by the supply through only one carrier. after being booed by the audience . Heere­ British, French Foreign Minister Claude mann's assertion that "if things are not Cheysson "firmly quashed suggestions that changed very rapidly, the mood of the farm­ the EC could do without Britain ." Gaullist ers may rapidly shiftagainst our democracy opposition leader Jacques Chirac demanded Petroleum and our parties," was met with frenetic ap­ that the United Kingdom be put "on holi­ plause from the usually docile farmers . He day" from the Community. French Presi­ Kissinger and Qaddafi then attacked American agriculture for dent Fran<;ois Mitterrand "hinted at the end of the summit that the Nine might try to push plot coup in Sudan dumping cheap products on German . markets. ahead on their own," without Britain. Agriculture Minister Kiechle was greet­ Henry Kissinger is involved in the moves of ed with hoots and whistles, then a load of Libyan dictator Muarnmar Qaddafi to over­ manure was dumped in front of the podium throw Sudanese President Jaffar Numeiry while he was speaking, flanked with signs Infrastructure and partition Sudan into Muslim and black that threatened "French measures" would be African states. At stake is control of the taken if there were no government action. Scranton, Pennsylvania large oil reserves in southern Sudan. Two days after the Libyan bombing of Signs recalling the Nazi slogans about Ger­ suffers dysentery man farmers and German oaks have already the central Sudanese town of Omdurman begun to appear at farmers' meetings. March 16, Sudan's Defense Minister Umar Former Lehigh Valley coal center Scranton Muhammed at-Tayabbi spent six days in is now afflicted with an outbreak of dysen­ Washington where he met with both Henry tery caused by protozoa infesting the city's Kissinger and representatives of Standard of European Community main water supply due to leaking of raw California (Chevron). At-Tayyib returned sewage (fecal contamination) into the city to Sudan in the company of State Depart­ . 'Storm on the Channel: reservoir. The condition of the reservoir has ment official Vernon Walters , a long-time developed over years , but the Environmen­ Kissinger associate. continent isolated' tal Protection Agency, fully aware of the The increased military pressure on Su­ situation, failed to take corrective action. dan by Libya is calculated to destablize the That quip regarding British chauvinism was Democratic presidential candidate Lyn­ Numeiry regime and open the way for a revived on March 30, after a last-minute don LaRouche's health adviser, John coup by a handpicked puppet of Kissinger ministerial effort by the European Commu­ Grauerholz, M.D., addressed a meeting on and .the oil companies. Chevron has been nity (EC) to narrow differences concerning the water crisis March 27, and also dis­ exploring for oil in Sudan; it has been re­ the British budget contribution. It ended with cussed the contamination crisis in the de­ vealed that Chevron has hired Kissinger as worsened disagreements , the Daily Tele-. pressed former steel town of McKeesport, a consultant. Shortly after Walters's trip to graph' s front-page headline being "Britain 250 miles to the west. Sudan, Kissinger appeared on U.S. nation-

16 Economics EIR April 10, 1984 Briefly

• THE UNITED STATES is halv­ wide television and stated that the United by the Colombian government in mid­ ing the tariff-free import quotas for States should give no more heavy arms to March] are the same people who are public­ newly industrialized nations' goods. Sudan. Without continued U.S. aid, Sudan ly fighting Justice Minister Rodrigo Lara Some $12 billion in exports from ma­ will be rendered defenseless against Libya. Bonilla. who has shown himself the abject jor debtor nations will now be subject representative of your government in the to duties which will destroy their Colombian cabinet." Escobar registered his trade. U.S. Agriculture "most energetic and patriotic protest against , the unmerited intrusion of U.S. ship� and • THE U.S. TRADE DEFICIT Commodity programs authorities into Colombian territory"-part will probably be reduced by 40-60% to be barely maintained of U.S. cooperation with the war on drugs in the next 18 months if the present Lara is conducting. trend to a cheaper dollar continues, At the same time . Colombian Commu­ U.S. Trade Representative William Assistant Agriculture Secretary William nist Party 's weekly newspaper Voz Prole­ Brock stated March 28. He attributed Lesher told an agricultural policy meeting taria furiously denied Tambs's documented the sharp rise in the deficit to "eco­ in Washington D.C. March 27 that the next assertion that Escobar's cocaine factories are nomic growth" in the United States, farm bill will have to include some type of guarded by leftistguerr illas. But, the paper and the drop in exports by developing commodity program because the absense of wrote , "the class struggle also goes on in the nations to the debt crisis and the dol­ such a program would be too much of a underground economy. The exploited peas­ lar's appreciation. "shock to the system" of U.S. agriculture . ants have found themselves having to culti­ Speaking at the 1984 National Food Pol­ vate coca and sell it to the mafia's factories. " • JAPAN'S six largest steelmakers icy conference, Lesher claimed "I don't think will spend $2.71 billion on plant and we can return to the so-called free market equipment investment in FY1984, the with no farm programs ." There is still a role companies announced March29 . This for government in agriculture , he stated, al­ Food Crisis will mean an overall drop of 23 .7% though "not as deep as it is today"; it will be in capital investment from the current to "smooth out the highs and lows" in farm Philadelphia conference fiscal year. Nippon Steel, the largest prices. on African famine producer, stated that it had ear­ Lesher is a supporter of the policy the marked no funds for expanding ca­ Reagan administration has been putting into pacity; it will emphasize energy con­ effect for three years that has entailed driv­ The LaRouche Campaign held an Emergen­ servation, cost reduction, and high­ ing down the prices of U.S.-produced com­ cy Conference to Stop Genocide in Africa quality products. Nippon will cut its modities to make it possible to sell them on March 25 in Philadelphia. Panelists includ­ capital investment by 40% from last the world market at cheaper prices than oth­ ed former Manhattan Borough President year. er countries. Hulan jack; Minnesota farm leader and LaRouche Democratic candidate Pat • CHINA and the Japanese corpo­ O'Reilly; Second District congressional ration Mitsubishi signed a science and Dope, Inc. candidate Susan Bowen; U.S. Club of Life technology exchange agreement in Executive Committee member Sheila Jones early April. The first meeting will be Colombian drug mafia from Chicago; and Lyndon LaRouche's sci­ held in Peking in August. entific adviser Marcia Merry . Conference claims chauvinism moderator was Muriel Mirak, a founding • HOGS AND PIGS in the United member of the international Club of Life . States are now at 39.5 million head, United States Ambassador to Colombia Conference speakers attacked the Third the lowest March inventory since Lewis Tambs announced.March 28 that the' World policies of Henry Kissinger as de­ 1976. United States would cancel the visa of Pablo stroying the principles of the United States Escobar, whose drugdealings are estimated imd its historical commitment to developing • THE EIR three-minute taped re­ at $10 billion. Tambs also announced that the world-and related conditions in Africa port service has been restored follow­ the United States was about to ask for the to the dysentery outbreak in Scranton. A ing machine repair. We apologize to extradition of Escobar and 24 other top Co­ development policy for Africa was pre­ subscribers for the delay . Any full­ lombian drug chiefs for trial in the United sented to the conference, and a resolution year EIR subscriber is eligible to re­ States. was passed calling on the U.S. government ceive the report's phone number, Escobar immediately launched an anti­ to stop genocide in Africa, to forbid racist which can be called for a daily inter­ American campaign in the Colombian daily Henry Kissinger access to all positions of national update on breaking El Tiempo. "I am surprised," he wrote, "that power, and to carry out Lyndon LaRouche's developments . those of us whom you accuse of owning the Great Projects approach to African [cocaine] laboratory [raided and destroyed development.

ElK April 10, 1984 Economics 17 TImSpecialReport

The Soviet economy: everything goes fo r war build-up

byCriton Zoakos andLaurent Murawiec

The Soviet economy is a military economy. The greatest proportionof its working population (about 42% of the labor force not employed in agriculture or services) is employed in military production. The greatest proportion of its re-investable surplus (about 75%) is channeled into military production. And the one sector of its social activity which year after year registers increasing growth rates is the military . These statistics ought to be the indispensable grounding for any serious intel­ ligence evaluation of both the Soviet economy and the Soviet military effort. Unfortunately, this has not been and is not the case, at least not in the U.S. intelligence community. Once the composition of the Soviet Union's labor force is und�rstood and its implications are assimilated in a competent way, the absurd debates over "dollar estimates" of Soviet military expenditures among the CIA, DIA, Rand Corporation, et al . will cease, and will be replaced by a sober under­ standing that · we are dealing not with an ordinary though inefficient economic system, but with a purely military machine with a "nation attached to it." This has been especially true since the end of the Brezhnev era, and the takeover by the military junta which swept aside the communist bureaucracy and now governs absolutely. As this Special Report demonstrates, the economies of the U.S.S.R. and the satellite countries of Eastern Europe are being stripped down to fuel the current military buildup. But the shift now under way merely accentuates the distorted features of an economy which has been on a Spartan military footing since 1925. The Soviet Union, a nation with half the GNP of the United States, has maintained a military expenditure at least twice as large as that of the United States over a period of more than a decade. It outproduces the United States by wide margins in every category of military hardware, from riflesto tanks, to aircraft, to warships, to conventional and nuclear-armed missiles of all ranges. Of a total labor force of about 140 million persons, 8.5 million are employed in the manufacture of combat hardware of all types. A total of 26 million are employed in industrial professions which produce goods for the consumption of

18 Special Report EIR April lO, 1984 The Red Army on parade in Red Square. The militarymachine devours about three-quarters of the surplus generated by the Soviet economy. UPI

the military machine and under the direct administration of Each year, the Soviet educational system graduated the military establishment. In short, the Soviet "military­ 300,000 engineers and 400,000 "junior engineers." Half of industrial complex" employs 26 million productive workers, these joined the military sector. By comparison, the United which is approximately the same number that the United States graduated 60,000 engineers per year and only 20% of States employs in all manufacturing categories combined. those joined the defense industry. Compared to these 26 million productive workers in the Our own rough esti,mate, based on qualified manpower Soviet military-industrial complex, the total number of non" allocations among production sectors, is that for every man­ military-related Soviet industrial workers is about 36 million. hour invested in "new investment," there are three manhours The rest of the Soviet labor force is distributed between invested in the productions of military hardware. This i� a agriculture, services, and administration. rough, heuristic approximation which may upon closer study Of a total of 62 ministries which comprise the Soviet prove to be an underestimation of the extent of the military . government, 17 industrial ministries are administered direct- production effort. As a rule of thumb, available information 1y by the military. These are: 1) General Machine Building;. justifies the assumption that 75% of all reinvestible surplus 2) Machine Building; 3) Shipbuilding; 4 ) Aviation; 5) De­ generated by the Soviet economy goes into military output. fense Industry; 6) Radio Industry; 7) Communications Equip­ This, of course creates a problem: if one continues, year ment Industry; 8) Medium Machine Building; 9) Electronics afteryea r, to plow the investable surplus of the economy into Industry; 10) Electrical Equipment Industry; 11) Installation military output, the productive base is bound to start crum­ and Special Construction Work; 12) Maritime Fleet; 13) bling from the lack of adequate replenishment of the produc­ Transportation and Heavy Machine Building; 14) Oil Refin­ tive plant and equipment which produces the annual rein­ ing and Petrochemical Industry; 15) Energetics Machine vestable surplus. This is what happened to the Soviet econ­ Building; 16) Instrument Making, Automation Equipment, omy in the decade of the 1970s. and Control Systems; 17) Civil Aviation. In 1980, Soviet military hardware of all types was being Cannibalization of the civilian sector assembled in 134 major final assembly plants which were We survey three crucial economic parameters: rate of being supplied by over 3,500 other individual installations. growth of GNP, rate of growth of civilian investment, and This represents the greatest number of such facilities of any · rate of growth of military producton. nation on earth, and by far the greatest amount of industrial The rate of growth of the Soviet GNP as measured by floor space. During the 1960s and the 1970s, the Soviet official Soviet statistics declined' from 6-7% per year in the economy consistently produced and eployed twice as many 1950s, to 5% in the 1960s, to 3.8% in the 1970s, including major weapons systems per year as the United States. 0.9% for 1979-80.

EIR April 10, 1984 Special Report 19 •

Yet from 1966 to 1981 the annual growth rate of military The program of the Ogarkov era production averaged 5-6% per year, more than doubling over But by then another important political event had oc­ the entire time span. It is generally estimated, on the basis of curred: Chief of Staffof the Soviet Armed Forces Nikolai V. conventional judgments, that annual Soviet military spend­ Ogarkovpublished a booklet titled Always Ready to Defe nd ing is between 18% and 20% of Soviet GNP. More sophisti­ the Fatherland. It laid out the policies and economic pro­ cated methods of analysis tend to accept a 30-35% figure. grams on the basis of which a successor to the dying Brezhnev From 1970 to 1980, the civilian sector of the Soviet was to be ·selected. Ogarkov proposed to dramatically accel­ economy collapsed, while its military sector enjoyed unprec­ erate the rate at which the Soviet military economy cannibal­ edented prosperity. Military production facilities of all types izes the modest resources of the civilian sector, in order to expanded at an unprecedented rate. In 1980 they were able further speed up the pace of military buildup. Both Yuri to produce 3,000 main battle tanks, compared to the United Andropov and Konstantin Chernenko were chosen afterthey States' maximum capacity of 750. Floor space in the ship­ had paid homage to the Ogarkov program. building industry expanded by about 75%, facilitating the Marshal Ogarkov's booklet states: production of seven types of submarines .and all types of surface combatants . In 1979-80 the U. S. S.R. produced 23 In the interests of raising the defense capacity of submarines, while the U. S.A. produced two, and those with the country, it is more necessary than ever before that serious production difficulties. The Soviet aviation industry the mobilization of the Armed Forces be coordinated underwent two successive phases of expansion and modern­ with the national economy as a whole, especially in ization in this period, having massively outproduced its U. S. the use of human resources, transport, communica­ counterpart. It is now about to test-fly afighter bomber clearly tions, and energy, and in ensuring the reliability and superior to the American F- 16. At the beginning of the dec­ viability of the entire vast economic mechanism of the ade, the Soviets could produce about 200 missiles per year; country. In this connection, there must be a constant now the production of the SS-20 medium-range missiles alone effort to find ways to improve systems of cooperation is probably this much. among enterprises which produce the basic types of In the course of the 1970s, the Soviet Union's 50 major weapons, and to make them more autonomous with weapons design bureaus launched and completed over 200 respect to energy and water supplies, to provide them new major weapons systems, compared to less than half that with necessary stocks, and to create an equipment and many in the United States. These included the SS-18, SS-19, material reserve. Further improvement has to be made SS-20, and the Typhoon nuclear submarine. From 1970 to in the actual system of mobilization readiness of the 1980, the Soviets invested three times as much as the United national economy on the basis of the principle that a States in conventional hardware for their land forces, twice close interrelationship between the mobilization read­ as much for aircraft production, twice as much for military iness of the Armed Forces, the national economy and R&D, and twice as much for strategic offensive weapons. civil defense is the most important condition for main­ Through expansion of their space program, the Soviets laid taining the defense capacity of the country as a whole the basis for the future development of seven major new types on the requisite level. of space systems: the G- l (Saturn class) super booster, a medium-lift space booster, a space shuttle, a space plane , a Marshal Ogarkov's economic program was identifiedby large space station, the Potok communications satellite, and students of Soviet history as the continuation of a Spartan an advanced anti satellite system-all expected to be ready military-economy doCtrine which became dominant in the for deployment either later in 1984 or early in 1985. Soviet Union in 1926-27 and was best articulated in two The year 1976 was a critical turning point. The Tenth earlier books, Major General A. N. Lagovskii's Strategy Soviet Five-Year Plan for 1975-80 had provided for an in­ and Economy (1957) and the other published in 1947 by N. crease in civilian investment of 42% over the fiveyears . After A. Voznesenskii, the man who directed the Soviet economy the initialing of the SALT II accords in 1975, the Soviet during the war, from 1941 to 1946, The War Economy of leadership decided to increase military production and cor­ the U.S.S.R. in the period of the Patriotic War. respondingly decrease the civilian investment rate to 23% for We present excerpts from these seminal policy docu­ the five years. ments which ultimately determined the evolution of the So­ Afterthe first reduction of civilian investments by half in viet war machine "with a nation attached to it." 1976, a second major such decision was made in the spring First, from Major General Lagovskii: "Economy and . 1981 Central Committee meeting, which ordered another strategy are intertwined and reciprocally dependent. Their halving from a 23% rate over five years to a 12% rate. Before full unity is achieved by State Power. This unity is a perfectly Brezhnev died, it was once more decided to further reduce new phenomenon in the history of war and only possible in civilian investment growth rate to 1.5% per year. the Socialist State." And further on: "In order to meet the

20 Special Report EIR April 10, 1984 requirements of war, the whole economy will be revamped rolled steel in the output of metals, of aviation gasoline in for war." Lagovskii quotes early communist General M. V. the output of petroleum products, and of special chemicals Frunze, who wrote in 1924 that "Each time something is in the output ofthe chemical industry took place. The relative started in the economy, culture or other spheres, we must share of foodstuffs and supplies for the Red Army in the always raise the question: how much will the results of what food-processing and light industries increased, etc." These , we are starting here be in harmony with the requirements "new laws" have obtained in Russia's economy ever since. of the defense of the country ? Is there a possibility to build They are the very principleof the �conomic matrix of Russia. it in such a way that it can also fu lfill determined military tasks? The continuity of socialist planning "Strategy must already in peacetime make known the As to the present relevance of the Voznesenskii doctrine, approximate requirements Qf Army and Navy for the early suffice it to mention an extraordinary paean published on phase of a war, so that the economy, as war breaks out, has the occasion of the 80th anniversaryof his birth in the official sufficient bases in energy and raw materials, the required government daily Izvestia on Dec. 1, 1983, and another production capacity and skilled labor force, to meet the panegyric printed in Pravda on the same day, extolling the requirements of the armed struggle." Also: "[Modem] wars "unfading fascination and authority of this man . . . one of have demanded from the economies already in peacetime a the creators of the political economy of Socialism, the dis­ powerful tension and a corresponding preparedness to supply coverer of a number of fundamental problems in science." the armed struggle with the required military hardware. Just as former premier Aleksei Kosygin was being post­ "In modem war, quantity and quality of weaponry are humously hailed on his own 80th anniversary above all as of primordial significance ...the country's economy must one of the main organizers of the World War II mobilization, be prepared to take up immediately the mass production of rather than for any other earlier or later achievement, the arms, military technology hardware, and other supplies for fact that Defense Minister Dmitrii U stinov, in place in the the Armed Forces . . . today, the strength of a country military-industrial ministries since 1939 and a war-time col­ depends also on the time in which it can deploy its military laborator of both Voznesenskii and Kosygin, is at present potential . . . the prompt and all-rounded mobilization of the overseer of the Russian "military-industrial complex" all economic reserves is in the first place dependent on a testifiesto the continuity of the Russian leadership's doctrine country's economic system .... The Socialist system of and practice. planned economy has major advantages from this standpoint Ogarkov himself, in the cited 1982 booklet, reviews the over the capitalist economic system." lessons of 1941: Then, most emphatically: "Economic planning is very strongly determined by the interests of strategy. . . . The The beginning and the course of World War II reciprocal relations and mutual influence of economy and introduced further changes into the concept of mo­ strategy are in the modern war of especial significance. He bilization and to an even greater extent revealed the alone who grasps this fa ct. recognizes the true driving fo rce direct link which connected the mobilization and de­ of war." ployment of the Armed Forces with the transition of N. A. Voznesenskii, who directed the World War II the entire economy to a war footing and the reorgan­ economy of the Soviet Union, asserted the military supe­ ization of the political. social, scientific, and other riority of socialist planning in the following way: institutions of the State . The greater part of the econ­ "The Patriotic War created a new period in the devel­ omy and resources of the State were enlisted for the opment of Socialist economics, the period of war economics. 'purpose of ensuring immediate war needs. War economics of the U. S. S. R. is characterized by peculiar laws in the sphere of production and reproduction." Here again, Ogarkov is underscoring the principles that Voznesenskii described ". . . the mobilization of the have governed the Russian war mobilization since 1975. productive powers of Socialist industry, workers, and en­ The "high-blown prose of V oznesenskii and Lagovskii gineering and technical personnel for the needs of the Pa­ not withstanding, no war economy can survive for long by triotic War. Industrial enterprises were converted to war dumping most of its reproductive potential into the dead end enterprises. War industry was reinforced by means of trans­ of military hardware. Missiles, tanks. and warships do not ferring to it enterprises from other branches of the economy. add to productivity and are a net minus for the stock of The output of a number of civilian products was stopped in capital plant and equipment. After a few production cycles, order to release productive capacity, manpower, and ma­ the whole scheme tends to come to a crashing halt , unless terial resources for the needs of the war economy. The it loots an extraneous source of wealth . . . or unless some­ commodity composition of industrial output underwent a body feeds the military monster from outside. The Soviet radical change. Increases in the relative shares of quality war production system is no exception.

EIR April 10, 1984 Special Report 21 How the We st helped build the Soviet war machine

by Criton Zoakos and Laurent Murawiec

Serious students of Soviet history have long recognized, gineers, investment programs, and Western imported plant though the fact has yet to register among the ignoramuses and equipment. The economic historian A. C. Sutton has who write for the press, that the Soviet war production system written the definitive documentation of that period of history, that exists today was in evidence as far back as 1925-26, after in his authoritative Western Technology and Soviet Economic the death of V. I. Lenin. Ironically, Lenin, the founder ofthe Development from which we quote here: Soviet system, the purported father of modem communism, was fated to implement only one economic system after he The rapid growth of the 1920s was dependent on ascended to power, and that was a form of "free enterprise," foreign oper.ative and technical skills. Electrical en­ under therubric of the New Economic Program (NEP). Shortly ergy grew more rapidly than any other sector. Socialist prior to, and then after his death, a massive economic crisis electrificationwas achieved in good part in the 1920s. developed which was never resolved rationally. This was heralded as a triumph of Socialist contruc­ In 1926 and 1927, a group of Russian policy makers tion, but unless one defines the latter as a Western resolved on a long-term plan of building a new imperial state enterprise operating in a Socialist economy, it should power which would be based on modem military might. After be hailed as a triumph of Western private enterprise L. D. Trotsky'S expulsion from power in the early months of working under enormously difficult technical and po­ 1927 , this group worked out a detailed plan for evolving a litical conditions ....The remarkable growth of pro­ powerful military force. They concluded that their first pre­ duction in the 1920s is in those sectors that received requisite was a modem industrial base upon which such an the greatest Westernaid : coal, oil, pig iron, and rolled army would be founded. These military plans were then steel. Those sectors without a great deal of aid barely translated into the celebrated First Five Year Plan of 1929/ improved their position during the course of the dec­ 30-1934/35. ade. The Western contribution to Soviet production At the end of this Five Year Plan, Soviet manufacturing between 1917 and 1930 was total . No important pro­ of tanks had increased 40-fold, of heavy artillery guns 100- cess has been isolated which was not a West-to-East fold, of rifles I,OOO-fold, and. so forth. On April 28, 1929, transfer. . . . The penetration of Western technology Pravda quoted the vice-president of the Revolutionary Mili­ was complete: at least 95% of the industrial structure tary Soviet, Unshlikht: received this assistance.

We must try to ensure that industry can as quickly The period hailed as the great industrialization of 'the as possible be adapted to serving military needs . . . Soviet Union, the demonstration of the superiority of So­ [therefore] it is necessary to carefully structure the cialism, was described in 1933 by the journal Za lndus­ Five-Year Plan for maximum cooperation and inter­ trializatsiyu as "a combination of American business and relationship between the military and civilian industry. science with Bolshevik wisdom, [whose combined effect] It is necessary to plan for duplication of technological has created these economic giants in three or four years." processes and absorb foreign assistance ....Su ch are Given what we know of Bolshevik wisdom in industrial the fundamental objectives. matters, little could be credited to socialism. Hundreds, perhaps thousands of Western companies were called to Every new plant had a department devoted to military supervise construction of the firstFive- Year Plan. According products, and every plant produced both civilian and military to Harry Schwartz (Russia's Soviet Economy, N.Y., 1950), goods, although the military took first priority. "It seems correct to say that every or almost every major branch of the Soviet productive system receiveq substantial Bolshevism and U.S. technology aid from abroad and had much of its rapidly expanding corps The secret, of course, is that the early industrialization of native engineers and technicians of all kinds trained, effort depended almost entirely on Western companies, en- directly or indirectly, by foreigners." Adds Sutton:

22 Special Report EIR April 10; 1984 en an architect came in the door unannounced. In that year, a group of engineers from the tI.S.S.R. came to the Kahn office with an offer for a $40 million tractor plant and an outline of a program for an ad­ ditional $2 billion [these are1928 dollars!-ed.] worth of buildings. About a dozen of the factories were done in Detroit; the rest was handled in a special office with 1,500 draftsmen in Moscow. " The "outline of a pro­ gram" presented to the Kahn organization in 1928 was nothing less than the first and second Five-Year Plans of "Socialist construction."

The contract was for plant design, the selection and ordering of machinery, the preparation of process layouts, and the ordering and shipping of the tools needed to build the plants. The chief of the Soviet State Project Construction Trust, Gosproektstroi, was G. K. Scrymgeour, a Kahn en­ gineer who also headed the Building Commission of the Supreme Economic Council-the only American to be a member of the "National Technical Soviet "! Thus were the J three shining examples of Socialist construction, the tractor plant in Stalingrad, and those in Chelyabinsk and Kharkov, i built from top to bottom by American technology-the Rus­ The Soviet economy has been grounded in militaryproduction since sians providing unskilled labor and raw materials. The mil­ the death of Lenin. itary industry, which includes the three above-mentioned plants, was similarly assisted.

The foreign engineers who worked for the Soviet Lack of innovation Union between 1930 and 1945, whether under the first What is further striking is the fact that, no more in the Five-Year Plan, during the '36-'39 period, under the 1930s than in the 1920s did any significant technological Nazi-Soviet Pact or under Lend-Lease, were usually innovation spring up in Russia's civilian economy. What tofrftight consultants without whom the projects would happenedwas that "the Soviets acquired 30 years of foreign have remained on paper only. The Soviets were adept technological development in three years, although it took at selecting, in almost every field, from irrigation to 10 to 15 years to absorb the acquisition, " Sutton reports. But metallurgy, first rank foreign construction companies the backwardness remained in terms of innovation---contrary and the finest industrial talent. to a country like Japan, which extensively borrowed and Even more significant, "the Five-Year Plan as a concept copied, but assimilated and further developed technology is almost completely a myth of the propaganda mills. The developed elsewhere. complete design work, supervision of construction, provi­ What happened in the 1930s was really the mass import sion of equipment and in many cases, actual fa ctory con­ of selected technologies for selected, key branches that cen­ struction were done by Western companies under contract." tral planning had decided to boost-as preconditions for de­ We shall not repeat the detailed treatment of individual veloping the defense economy. industrial branches which Sutton takes three volumes to This Western technological assistance, including em­ develop, but for the purposes of this report, his study of the phatically Nazi assistance especially after the Hitler-Stalin planning and construction projects �ill provide the required Pact, continued un�il Hitler's June 1941 Operation Barbaros­ paradigm: sa. Lend-lease supplies from the United States in the capital goods sector alone represented more than one billion (1938) One of the truly great surprises in researching this dollars, with the result that, in the words of Sutton, "The study was the discovery that the architectural design Soviet economy ended the warat a level of technology which and supervision of construction of industrial units as in many respects was at a par with that of the United States. " well as the supply of equipment and similar assistance Aftersizable technological input accrued because of the 1939 was very much an American responsibility. In the Nazi-Soviet Pact, "the Soviets had, in effect, an indigenous words of Albert Kahn Co., Inc., the foremost indus­ military technology by 1941. Further, weapons were pro­ trial architects in the Unietd States: "It was in 1928 duced in largequantities over a full decade . . . this prudent, . . . that the most extraordinary commission ever giv- far-sighted policy accounts for the Soviet ability to tum back

EIR April 10, 1984 Special Report 23 •

the Nazi invasion before Lend-Lease goods flowed in any process. When the standard had been identified, it was great quantity. " prepared for duplication and standard drawings were When Lend-Lease goods, supplied under the first, De­ prepared. This process of identification of standards cember 1941 Russian-American protocol, started to flow, and subsequent duplication is found in all major Soviet they represented an extraordinary technological bonanza. A industries ....Why were the Soviet engineers and June 1944 cable to the State Deptartment by then-Ambassa­ planners so successful in choosing the best foreign dor to Moscow Averell Harriman makes the point clear: technologies? In almost every case [they] made an "Stalin paid tribute to the assistance rendered by the United excellent choice. They invariably chose a more suc­ States to Soviet industrialization before and during the war. cessful, low-cost process ....One explanation might He said that about two-thirds of all the large industrial en­ be the highly detailed comparative technical studies terprises in the Soviet Union had been built with U.S. help conducted . . . it is clear that the Soviet system has or technical assistance." institutional procedures enabling the rapid, usually Close to half a billion 1938 U.S. dollars worth of ad­ successful transfer of Western technology at low cost vanced machine-tools were injected into the Russian econo­ and in a relatively efficient manner. my. Still, in spite of the high technological standard thus acquired, the principle of the war economic mobilization was A series of other advantages are listed by Sutton: the the starving of the population, of the civilian sector as a help of espionage, local communist parties and sympathiz­ whole, of anything thatdid not go to the front. ers, cooperative Western manufacturers providing data in From the end of the war to the death of Josef Stalin, the order to gain contracts, the pinpointing of the more suc­ parasitical Soviet war economy took its time to digest the cessful processes by market results in the West. "These looting of Eastern Europe, an issue treated elsewhere in this constitute a formidable package of advantages ....In brief, Special Report. Afterthat arrived the era of detente, and with the Soviets have demanded and have been supplied with the it the modem, controversial form of "technology transfers," frontier work of capitalist systems often before it is utilized "industrial espionage," and that one-way East-West trade in the country of origin ....This policy requires extensive without which the Soviet military machine of the 1970s and information, assimilation of foreign techniques, and a great 1980s would not have been built. , deal of skill to avoid mistaken choices." The study of the "copying" methods further reveals the Stealing, copying, and assimilating inner nature of the Russian system: The fu ndamentaJ doctrine The process whereby Russia acquires foreign technolo­ and policy of the regime prohibits the conditions that cause gies exemplifiesthe nature of the beast: Incapable of devel­ innovation to flourish. As a result, Russia is "compelled" oping at the frontiers of technology, it steals the products of to imitate the creative discoveries made outside it, without external systems that are able to adv!\llce permanently. The ever being capable of mastering the process by which such old quip of the Russian agricultural minister opposing the discovery is achieved. The Russian economic situation is takeover of the rest of the world-"Who will sell us grain thus rooted in the deepest of all epistemological problems, then?"-has across-the-board validity. We shall once more that of mastering the process of successive scientific dis­ draw on Sutton's analysis: coveries and the method by which the process is mastered. The operational key to the development and uti­ According to a 1982 intelligence report to the U. S. Con­ lization of technology within the U.S.S.R. is con­ gress, during the 1970s the Soviet theft and acquisition tained in the two words, "standardization" and "du­ program made available to the Soviet economy the following plication." [In a first stage, the targeted foreign tech­ otherwise unavailable technologies (among others): 1) com­ nology is acquired.] The technological dragnet [is] plete industrial processes and semiconductor manufacturing unbelievably thorough and complete. It is doubtful equipment capable of meeting all Soviet military require­ whether any technical or economic development of ments; 2) complete computer system designs, concepts , consequence has escaped examination by the Soviets. hardware, and software plus a wide variety of general-pur­ When information could not be acquired overtly, it pose computers and minicomputers , enough to cover 50% was acquired covertly, by espionage, from govern­ of the U.S.S.R. 's computer needs and 100% of its military ments, companies, and individuals. Such information needs; 3) automated and precision manufacturing equipment was translated, summarized and distributed to plan­ for electronics, materials, and optical , and future laser weap­ ning, design, research, engineering, and economic ons technologies; machine tools for cutting large gears for bodies. ship propulsion systems; 4) optical, pulsed power-source Prototypes of promising processes were acquired, lasers and other laser-related components, including special examined, dissected, catalogued, and analyzed in the optical mirrors and mirror technology suitable for future most minute detail. The process most suitable for So­ laser weapons. viet conditions became the standard. Foreign engi­ The dollar value of the 1970s loot in this area alone is neers were hired to carry out or assist the selection estimated in the high scores of billions.

24 Special Report EIR April 10, 1984 Looting the East European colonies for the Russian imperial war effort by Konstantin George

No comprehensive understanding is possible of how the So­ merchant fleetcourtesy of the captive shipyards. Government viet Union's economy ticks, let alone of the current "surge and industry sources in Poland and East Germany reportthat phase" of the war economy mobilization, without examining they are compelled by Moscow to use scarce foreign ex­ the dynamics of Russia's colonialist looting of its Eastern change to purchase Westernnavigation and other specialized E�ropean satrapies. The Soviet Union is an imperialist pow­ equipment to equip the ships. There is no Russian compen­ er; it has colonies, known politely as the "fraternalcountries" sation for these hard-currency expenditures. of the Comecon, and to describe its posture towards them as These numbers only begin to tell the story. Finnish yards rape would hardly be an exaggeration. produce a high percentage of specialized modem ships whicij The prime function of the economies of the "captive enter the Soviet merchant fleet, such as container ships, RoRo nations" of EasternEurope is the compulsory export to Rus­ (roll on-rolloff) cargo ships, icebreakers, and a fleet of heavy­ sia-on Russia's terms regarding quantity, quality, and de­ duty modified ice-breaker transports for use in the Arctic livery dates-of tens of billions of rubles of critical goods, Ocean-Barents Sea and the Sakhalin-Kamchatka-Bering Sea machinery , machine tools, and transport equipment, all un­ region in the Pacific, The Polish shipyards in Szczecin and derpriced through rigged Soviet pricing policies and a ruble Gdansk are currently producing on a priority basis 33 large overvalued in relation to the Eastern European currencies. tugs (nine already delivered) to tow rigs and platforms into Without this systematic looting, not only would the depth place in the Soviet offshore oil-drilling program. The dredges, and scope of the Russian war economy hardly be imaginable, which maintain Soviet harbors in operation and keep the but, even more emphatically, the fouled-up Soviet civilian required water depths for navigation in the Soviet Union's economy would be in far worse shape than it is now. extensive inland waterway system ofrivers , lakes and canals, The satellites, in particular East Germany, Czechoslo­ are produced in East Germany. vakia, and Finland (Finland has annual consultations and extensive agreements with the Council for Mutual Economic Twenty years of looting Assistance--CMEA or Comecon-and, since it has no choice The Soviet military build-up since the 1962 Cuban Mis­ but to comply with Soviet demands for goods exports and sile Crisis hasbeen accomplished by notable increases in the "cooperation" in "joint projects," must be included in the rate of looting in each subsequent Comecon Five-YearPlan . rigorous definition of "colony") are Russia's milk cows sup­ This point was illustrated in grisly fashion in December 1965, plying industrial goods crucial for the Russian war buildup. when the East German delegation returned from Moscow A case in point is ship construction. In the past 20 years after signing the trade protocol for 1966-70, with a whopping the Soviet Union has built up a first-class navy and become increase in mandated deliveries to the Soviet Union. The East the world's number-one merchant shipping power. Without German Planning Commission head, Eric Apel, went straight the shipyards of East Germany, Poland, and Finland, this to his office, put a pistol to his head, and terminated his dual feat would have been impossible. Russia can build the servicesto the "firstWorkers ' and Peasants' State on German atomic submarines, helicopter carriers, guided-missile cruis­ soil. " ers, and destroyers for its four fleets, but ':lotwithout captive The Comecon "integration" process has gone through shipyards producing the scores of new ocean-going vessels three principal turnsof the screw: 1976-80, 1981-85, and the required each year. shift to a war economy underway today. The figurescompar­ In 1983 alone, of 67 major ocean-going ships produced ing 1976-80 with 1981-85 are quite telling. From 1976 to in East German shipyards, 54 were delivered to the Soviet 1980 the total flow of goods classifiedas "machinery, equip­ Union. Scores of ocean-going ships were delivered to Russia ment, and transportation" (especially ships and railroad cars) by Polish and Finnish yards. Project this back over 20 years, exported from Eastern Europe (not counting Finland) to the with a minimal annual average of 40 East German-built ships Soviet Union was valued at 40 billion rubles. Soviet exports delivered, and with similar calculations regarding Poland and of goods in the same categories to Eastern Europe were val­ Finland: 2,300 major ocean-going ships entered the Russian ued at 24 billion rubles for the same period. For 1981-85, the

EIR April 10, 1984 Special Report 25 original plan for East European exports of these goods cate­ bles in 1984." Concerning East German exports to the Soviet gories to the Soviet Union was set at 60 billion rubles-a Union: 50% increase over the preceding five years. Actual rates of The proportion of the following will increase: ma­ deliveries were higher, and the rates continue to climb. The chine tools, presses, forging equipment, electronical­ planned Soviet deliveries to Eastern Europe of these cate­ ly-controlled metalworking lines and tools, plus elec­ gories for 1981-85 were set at no more that 24 billion rubles­ trical and industrial chemical goods. no increase at all. The German Democratic Republic [G.D.R.J will We will now zero in on East Germany (G.D.R.) and supply: complete rolling mill plants, equipment for Czechoslovakia (C. S.S.R. ), the number-one and number­ production of cable and stranding machines, equip­ two trading partners of the Soviet Union, with whom the ment for crudepetroleum reclamation and processing, Soviet Union conducts 20% of its trade (11% and 9% respec­ cranes, open-pit mining equipment, excavators, road tively). Soviet-G.D.R. trade from 1976 to 1980 totaled 37.7 construction machinery, equipment for the construc­ billion rubles; the 1981-85 Plan was for 59.8 billion rubles, tion of industry, for the printing industry, ships, textile already a dramatic increase, and the actual 1981-85 totals machinery, agriculture machinery, and railroad cars. will minimally reach 65 billion rubles. Soviet-Czech trade Also air conditioning and refrigeration equipment, for 1976-80 was 29.5 billion rubles; the planned total for pumps and compressors, machinery for the food in­ 1981-85 was 41.4 billion rubles, and the actual total will dustry and the chemical and light industry. reach no less than 53 billion rubles for the fiveyears . Already in 1983, over 35% of total Czech and East German tradewas The following percentage figures tell the story of the withthe Soviet Union. G.D.R. economy in a nutshell. In 1983, 80% of the ocean­ With the transition to military junta rule in the U.S.S.R. going ships produced were exported to the U.S.S.R., 60% in the last years of the Brezhnev and Andropov regimes, of all waterborne craft, 80% of all railway cars, 40% of all Soviet intra-Comecon trade reached percentages not seen machine tools, 40% of all forges and presses, 60% of re­ since the Stalin period. In 1981 the Soviet Union conducted frigerated trucks and railway cars, and 70% of all telephone 52.8% of its trade within the Comecon (including Finland). switchboard equipment. In 1982, the figure was 55%, and in that year a goal of 58% Since the Central Committee plenum, the Soviet march­ was set for 1985. That 58% share has since been set in 1983 ing orders have begun to be implemented: East Germany as the goal for 1984, and now that target has been thrown has commenced a speed-up in the machine tool sector, with overboard for even more ruthless "integration." a workforce of 80,000 divided into four giant machine-tool­ producing facilities (Kombinaten) in Berlin, Karl-Marx Stadt, Even tighter 'integration' Erfurt, and Scmalkalden. The Erfurt Kombinat, on short With Andropov not yet officially dead and the military notice, just announced that it will "voluntarily" advance by junta ensconced in power, in the immediate aftermath of the six months the 1984-85 delivery dates for three huge forging Dec. 26, 1983 Central Committee plenum which officially presses for the Soviet vehicle industry. The machine tool heralded the "patriotic duty ...of greater labor discipline," industry as a whole has just pledged "four extra days worth Radio Moscow of Dec. 29 announced the decisions of the of production" above the 1984 norms. plenum for the Eastern European colonies: "Trade between the CMEA countries will grow by almost 19% in 1984 and Soviet conditionalities the CMEA share of U.S.S.R. trade will reach 61% [the Trade with the Soviets on their terms, however, is only earlier 58% projection is dead and buried], versus 53.7% in partof the way the East European satrapies are exploited. All 1980, testimony to deepening socialist economic integra­ are hostage to Soviet deliveries of critical raw materials, tion. " In case anyone in Eastern Europe missed the point, which are supplied on the basis of conditionalities very sim­ Radio Moscow added: "The Central Committee Plenum was ilarto theInternational Monetary Fund's colonialist doctrines a vivid expression of our party's course for attaining a qual­ towards the developing sector. Soviet deliveries of raw ma­ itatively new level of economic integration [in the Come­ terials required by the East European countries are supplied con] ....Comrade Andropov said one cannot imagine life not only in return for a massive flow of industrial goods, but [a bit of black humor by the military?-KGJ in the countries on condition that the East European countries supply money, of the Socialist Community without it.... In the long term, labor and equipment to "jointly" build with Russia the great integration will become even deeper, all-embracing, and majority of the huge Soviet raw material development proj­ effecti ve. " ects, raw material processing plants (e.g., ore concentrating Radio Moscow carried the news of the new trade proto­ and pelletizing and pulp and paper plants) and infrastructure cols signed with Czechoslovakia and East Germany, report­ projects (oil and gas pipelines, roads, railways, and port ing that in 1984 U.S.S.R.-Czech trade will grow by 12% and facilities). total more than 12 billion rubles, and trade with East Ger­ Imagine if the United States in its relation with Mexico, many will "significantly increase to well over 14 billion ru- as a condition for food exports, were to demand supply of

26 Special Report EIR April 10, 1984 labor, money, and equipment to "'jointly" build with the These giant power plants and power lines are built as United States the grain storage facilities, port facilities, rail­ "joint" projects between Eastern Europe and the Soviet Union. ways, and roads that would service the U.S.-Mexican trade. The power plants are fired in part by good quality Polish This is what the Soviets have been demanding, in increasing bituminous coal, millions of tons of which are now shipped amounts with each successive Five Year Plan, of their East to the Soviet Union annually under a Soviet-dictated priority European colonies. railway project shoved down Poland's throat in the early The three paradigm cases for these policies are energy, 1980s. (The Polish coal mines, like all the key enterprises in raw materials, and transportation. Let's start with energy. In the country, are under military control.) The Soviets built a 1982, in a typical "fraternal agreement," the East Germans, nearly 400-kilometer-Iong broad-gauge railway through Pol­ in return for receiving "additional amounts of natural gas" ish territory to the mining and steel center of Katowice in (barely enough to meet requirements), agreed to provide the Silesia, thus not only making all the iron ore flow and the funds, labor, and machinery to construct 500 kilometers of bulk of the coal flow toand from the "Polish Ruhr" dependent the Soviet-European gas pipeline within the Soviet Union upon the Russian railway system, but also commencing Pol­ and seven of the compressor stations. Similar arrangements ish dependency on Soviet ports for Polish exports to third were concluded with the other satellites, while the Czechs countries. were made to foot the bill for the entirety of the pipeline in The statement of the Soviet foreign trade ministry on the their territory (the trunkline traverses Czechoslovakia before scope and political significance of the project speaks for entering West Germany and Austria). From the standpoint of itself: Soviet long-term strategic planning, it should be noted that The length of the stretch on Polish territory is 397 all of the three major gas pipelines built from 1967 to the kilometers. It's the biggest transportation project un­ present traverse only the territory of the Soviet Union and dertaken in Poland in the entire postwar history. Forty­ Czechoslovakia before entering Western Europe. four railway bridges were built, including large bridges Compulsory Czech exports of wide-diameter seamless over the rivers San, Vistula, Nida ....This stretch steel pipe to the Soviet Union are also crucial for Russia. is of many-sided significance. Its main aim consists (Czechoslovakia ranks number two in pipe exports to the in securing the rhythmical direct transport of Soviet Soviet Union, afterthe Mannesmann firmof West Germany, iron ore for the Polish steel industry, and in the other which has exported well over eight million tons of such pipe direction of Polish sulfur from Tamobrzeg and coal to the U.S.S.R. in the past ten years.) The steel pipe plant at from Silesia to the Soviet Union ...and for enabling Chmutov alone has exported two million tons of wide-di­ the foreign trade of Poland to also be conducted through ameter pipe to the Soviets in the past ten years, plus an the Soviet Union [through Soviet ports]. additional one million tons of smaller-diameter pipe. Another steel plant at Kosice in Slovakia, some 50 kilometers from Two of the biggest problems confounding the Soviet the Soviet frontier, exports its production to Russia via a railway system are the overriding need to reduce the ton­ Russian broad-gauge railway especially extended into Czech mileage devoted to coal-hauling, and_ the shortage of func­ territory for that purpose. tioning locomotives at any one time, especially for the long­ Soviet policy is to simultaneously maximize the satel­ haUl routes. The East German newspaper Neues Deutschland 'lites' dependency on Russia for raw materials for their indus­ this month reported on Soviet announcements that two-kilo­ tries, and to maximize the flowof oil and gas from Russia to ' meter-long freight trains hauling coal from the Kazakhstan Western Europe, increasing Western Europe's dependency. fields to the power plants in the Urals have been instituted To facilitate this dual objective, the Soviets have promoted a as the norm, and three-kilometer coal trains have been begun nuclear energy program in their three most tightly controlled on the Baikal-Amur (BAM) railway, in the Soviet Far East. . satellites, the G.D.R., Czechoslovakia, and Bulgaria, while Extensive reports were published in the Kazakhstan Pravda the cornerstoneof the East European energy program remains in 1981, decrying the idling of thousands of coal cars because coal-firedthermal power plants, using poor quality domestic of a lack of serviceable long-haul locomotives. coal resources as much as possible. Thus the main expansion The two mammoth iron-ore mining, concentration, and of power plants in the G.D.R., Poland, and Romania has pelletizing projects underway, mostly at East European and been based on domestic lignite. Finnish expense, are at Krivoi Rog in the Ukraine and at The other facet of the program has been the construction Kostomuksha in Kareli'a, 30 kilometers from the Finnish of a string of Soviet power plants, mostly coal-fired and some border. Kostomuksha, now operational and handling 16 mil­ nuclear, in the Western Ukraine (the largest one at Khmel­ lion tons of iron ore per year, was built by 10,000 Finnish nitskii will be completed next month), with high voltage industrial and construction workers. The project also entailed power lines extending hundreds of kilometers into eastern massive modernization and expansion of rail and road fa­ regions of Poland, Czechoslovakia, and Hungary, bringing cilities in the Karelian corridor between Leningrad and the these territories more directly into the Soviet electricity grid. Finnish frontier, projects with definitemilitary implications. The same will be true for Bulgaria. The Comecon is now in the midst ofthe 1981-85 program

EIR April 10, 1984 Special Report 27 for repairing, modernizing, and reconstructing 19,000 kilo­ meters of track which "service the overwhelming portion of freight transport between the CMEA countries," and the pro­ gram is, as the Soviet Foreign Ministry so politely phrased it, "at joint expense." Of the 19,000 kilometers, 2,000 are being double-tracked, 7,000 are being equipped with auto­ matic switching and track control, 6,000 are being electri­ fied, and 9,000 being reconstructed. Military scales down Of the 18 major rail lines involved, 14 are east-west truck lines and all have primary military significance, for obvious by Clifford Gaddy reasons. The east-west lines being rebuilt and reequipped include 1) the line from Kiev through the Western Ukraine, Southern Poland (south of Warsaw and Lodz) and crossing Although the Soviet Union built the world's first nuclear into East Germany between Forst and Falkenberg, 2) the line power plant (1954), and especially during the 1970s talked a from the iron ore center at Krivoi Rog in the Ukraine through lot about an ambitious program of nuclear-generated electric­ Lvov to the Hungarian capital of Budapest, and 3) the line ity, that program never really got off the ground. The mar­ from Krivoi Rog to Prague. shals, it seems, were never really persuaded of the merits of The massive rail program is paralleled by a military prior­ the "peaceful atom." Requiring a centralized energy grid and ity Comecon highway program, also being built at predomi­ major investments in large units, the nuclear program ran nantly East European expense, according to Soviet counter to the military's preferred scheme of a network of specifications. small, decentralized energy plants; for that reason the mar­ The following item appeared in Neues Deutschland Dec. shals opposed the nuclear energy option from the beginning. 19, 1983: "Bratislava, C.S.S.R.: The first phase of a new The Soviet energy sector is a case study corroborating the two-deck combined rail and highway bridge over the Dan­ thesis of the Soviet General Staffthat when the interests of ube, is 24 months ahead of schedule. One rail track and two the military collide with those of the civilian economy, it is highway lanes on the bridge, 460 meters long, are now open the military considerations that take precedence even if that to traffiC " ...the bridge is part of the CMEA's 'Trans-Euro­ means an economic loss. peanTransport Sy stem.' [emphasis added]" In 1970 the officialplans for the domestic nuclear power Nothing in the East bloc gets built 24 months ahead of program of the Soviet Union called for an installed capacity schedule unless it has top military priority, and that's ob­ of over 50 gigawatts by 1985 (1 GW is roughly the capacity viously the case concerning both this particular bridge and of a single large modem nuclear plant). Right now, it looks the 'Trans-European Transport System" of which it is a part. like the Soviets will be lucky to reach 25 GW by that date. To quote the Soviet foreign trade minister concerning this This record of only 50% fulfillment of the original plan program: is one of the worst in the Soviet economy, and cannot be dismissed as just another manifestation of poor Soviet eco­ The program consists of four new main highways nomic performance. The foot-dragging and obstruction in an with a total length of about 9,000 kilometers: Berlin­ area which leading economic planners and politicians had Warsaw-Moscow, with a length of 2,000 kilometers; definedas a national priority can only be due to the persistent Rostock -Berlin-Prague-Budapest-B ucharest-Const an­ opposition of the military leadership of the country. ta, with a length of more than 2,000 kilometers; Dan­ The Soviets have known all along that nuclear-generated zig-W arsaw-Katowice-Bratislava-Budapest- Timo­ electricity is far and away the most advantageous form of soara-Turnu-Severin-Craiova-Calafat-Widin-Botev­ energy for an economy, the one that best promotes techno­ grad-Sofia,a length of 2,500 kilometers; and Moscow­ logical and economic growth. The nuclear course not only Kiev-Kishinev-Bucharest-Sofia, a length of 2,500 made economic sense, but it had ideological legitimacy as kilometers. well: It was, afterall , Lenin who had defined communism as In cooperation in activities of this kind, it is the "Soviet power plus electrification of the entire country." norm that the reconstruction of roads and the accom­ Nevertheless, the Soviets' effort to apply the most mod­ panying installations, that each country meets the en­ em technology to that task of electrificationwas pitiful. From tire cost and labor at its own expense for the stretch the construction of the first station in 1954 until 1970, the of road to be built on its territory. At the same time, Russians had managed to install less than 1 GW of nuclear however, questions such as the category of road and capacity. (The U.S.A. by that time had 6.5 GW.) By 1975 the schedule of construction are to be centrally decided the Soviet figure had crept up to only 4.7 GW, compared to [by the Russians] . Thus, uniform highways will be a U.S. increase to 39.8 GW. As bad as this was, though, built, based on a unified technology. there were signs that the advocates of the peaceful use of Such is the colonial policy of the modem-day Sparta. atomic power might be gaining the upper hand. Officially,

28 Special Report EIR April 10, 1984 nuclear prograIIl

the U.S.S.R. was to build 50 GW of nuclear capacity by 1985, and to reach that level it planned to build a new industry and a new city around the world's firstas sembly-line produc­ tion facility for nuclear reactors. The new factory, the Atom­ mash Plant on the Volga-Don Canal in southernRussia , was to be the showpiece of the national nuclear program, turning out eight reactors a year that could be transported by river

and rail to power station sites around the country . A nuclear plant on the U.S.S.R.'s Mangyshlak peninsula. Official Soviet statements explained why the nuclear ef­ fort was necessary . Increased electrification of the country was essential, they said, because of the rising transportation to build the plant, including the costs of building railways costs of oil and gas; the old gas and oil fields were becoming and roads to connect the plant to the existing transportation exhausted, ,and the new fields lay thousands of kilometers network, losses caused by construction, costs of water sup­ deep into Siberia, with no roads or rail communications. The ply, and investments in housing and other facilities for new way to generate that electricity cheaply, specialists said, was workers-is in the range of 210-270 rubles/KW of capacity, through, nuclear energy: "Atomic power stations generate depending on the type of reactor built. Thus, if the Soviets electric power at a substantially lower cost than other power had taken the full 30-35 billion rubles which they had invest­ stations do," said one top expert, Academician Styriovich. ed in gas pipelines over the last five years and built nuclear plants instead, they could have had an additional 111-166 The shift to natural gas GW of nuclear capacity. And even with a more realistic In other words, in view of the huge extra infrastructural assumption that not all the investments could have been di­ investmentsrequired, oil and gas are not cheap energy sources. verted from gas to nuclear, it is clear that there would have Yet what has happened over the past years? Precisely at the been no problem in reaching the target of 50 GW of nuclear same time that the nuclear industry has been kept operating capacity by 1985, and probably much, much more. at half-speed, incredible resources have been invested in the Economically, this would have meant a tremendous ad­ uneconomical Siberian oil and gas industries. vantage for the Soviets themselves. Rather than pouring tens The size of the gas effort in particular is staggering. In of billions of rubles into a very inhospitable region of the the past five years, according to newly appointed Soviet country for pure raw materials extraction, they would have Communist Party boss Konstantin Chernenkoin his election been involved in nuclear technologies on a tremendous scale speech in early March, the Soviet Union has built 40,000 in the civilian economy. Whereas in the gas option, the infra­ kilometers (around 25 ,000 miles) of gas pipelines. This re­ structural investments were made in regions not previously quired some 27 tons of steel pipe, at a cost of around 30-35 involved 'in production (and thus such investments do not billion rubles. This is a huge investment, more than that spent contribute to speeding up rates of circulation within the pro­ on nearly every major national industrial project the Soviets duction apparatus)', in a nuclear option infrastructuralinvest­ have recently undertaken-the BAM railway in Siberia, the ments would have been concentrated where they were most Kama River truck plant, the Volga auto plant, Atommash, needed in the Soviet economy: to upgrade the infrastructure and others---<:ombined. It is an investment that makes very grid within existing production regions. little economic sense except for one fact: A large part of the But this economic argument did not outweigh what the pipe was produced and paid for by Western countries. marshals perceived as the military advantages of five years' The sheer inefficiencyof the investment in the gas pipe­ intensive investment in natural gas production: a more de­ line can be seen from the following calculation. According centralized energy grid inside the U.S.S.R. and, thanks to a to Soviet figures, the so-called specific capital investment of huge volume of gas exports to the West, a prime capability a Soviet power station-that is, all the expenditures required for energy blackmail of the adversary in Western Europe.

EIR April 10, 1984 Special Report 29 The Russian junta slams Dr. K. '8 back channel

by Criton Zoakos

Secretary George P. Shultz was taken aback by the intensity to the speeches [at Mr. LaRouche's conference] and no doubt of emotion displayed by Mr. Anatolii Dobrynin during a late­ remained ...you were among troglodytes ....They came February meeting between the two, as the Soviet ambassador to Rome from various countries, on invitation from a certain insisted that any negotiations between his country and the Lyndon LaRouche ....[He] is once again trying to run [for Reagan administration will be absolutely and unconditionally the presidency]. As the hobbyhorse of his electoral campaign out of the question, on arms control or on any other issue . LaRouche has chosen . ..space weaponry. The get-together "As far as my government is concerned," Dobrynin was at the Hotel Majestic showed that both Reagan and LaRouche reported to have said, "President Reagan thinks in private have followers in the Old World." what this man LaRouche says in public," referring to Dem­ Against this background, Secretary Shultz tried to con­ ocratic presidential candidate Lyndon H. LaRouche, Jr. Sec­ vince the Soviet ambassador that none of this is true, that retary Shultz protested vigorously that this was not the case. LaRouche is an inconsequential fringe person in U.S. poli­ Dobrynin stood his ground. As far as his government is tics, that the beam weapons policy would get nowhere be­ concerned, LaRouche is the man with the ideas behind Pres­ yond the "research" phase, and that it was urgent to com­ ident Reagan's decision to develop anti-missile beam weap­ mence the "back channel" negotiations as recommended by ons, the single greatest concern of the Soviet government at Henry Kissinger. Having made his point, Dobrynin de­ this time. murred and reverted to his customary diplomatic ambiguity. Secretary Shultz, in the course of the meeting in question A euphoric Shultz returned to his officeto order a "com­ back in late February, was convinced that the advice received prehensive review" of the status of U.S.-Soviet relations. fromhis friend Dr. Henry A. Kissinger was sound, namely Ambassador Arthur Hartman was brought back from Mos­ that the Soviet leadership would agree to start "back channel" cow for emergency consultations with Shultz, Gen. Brent negotiations as soon as they were convinced that first, La­ Scowcroft and others outside the governmentincluding Hen­ Rouche had no influence in the shaping of the administra­ ry Kissinger, Winston Lord, and William Hyland. They de­ tion's anti-missile laser defense policy, and second, that he, cided to go ahead with a plan proposed by Kissinger in De­ Kissinger, was the leading influence behind Washington's cember 1983, namely, to promote an individual as a special shaping of foreign and security policy. Secretary Shultz was "presidential envoy" to conduct "private," "quiet" diplomacy also aware that, apart from Ambassador Dobrynin's openly away fromthe public view. Kissinger had recommended that stated concerns about LaRouche, the Soviet government in Lt. Gen. Brent Scowcroftspecifically be named for this task. general was focusing its intense hostility on the Democratic Scowcroft was Kissinger's chief national security aide candidate. through the Nixon and Ford administrations and now is as­ Not long before , on Nov. 15, the Soviet government's sociated with the consultant firm Kissinger Associates, Inc. daily newspaper, Izvestia, reported the following on a con­ He is also the chairman of the President's bipartisan review ference on beam weapons held by Mr. LaRouche in Rome, panel on strategic weapons. Italy: " ... but all it took was to tum up in that hall and listen Shultz's "emergency consultations" during the firstweek

30 International EIR April lO, 1984 of March produced a plan of action: Brent Scowcroft would On March 21, a Soviet tanker, theLugansk, sailing near be sent to Moscow armed with a letter (of unknown contents) the coast of Nicaragua, was damaged by a mine laid by anti­ from President Reagan, to seek a private meeting with Gen­ Sandinista rebel forces who are in insurrection against the eral Secretary Chernenko.The Reagan letter in the hands of Nicaraguan government.Foreign Minister Gromyko sum­ 'Scowcroft would serve as a signal to Moscow that Kissinger moned that day U.S.charge d'affaires Warren Zimmerman is in the saddle in Washington. Ambassador Hartman would to the Foreign Ministry in Moscow and issued an unprece­ meet with Foreign Minister Gromyko for the appropriate dented charge, as reportedby TASS: explanations and arrangements. "The Soviet government holds the U.S. government re­ Hartman went back to Moscow, and asked for a meeting sponsible for that grave crime, an act of banditry and pira­ with Gromyko.He was told it would be on the 12th of March. cy .... The government of the U.S.S.R. reserves the right The following day, Scowcroft was to arrive with four other to demand compensation for the Soviet citizens who suffered persons: William Hyland, David Jones, Paul Doty, and Ar­ injury and the replacement of the material damage done to nold Horelick. Soviet property.The government of the U.S. S .R. states its The day arrived. Before leaving the embassy for his ap­ resolute protest to the governmentof the U.S.A.in connec­ pointment with Gromyko, Ambassador Hartman glanced at tion with the criminal action against the Soviet ship Lugansk the morning's Izvestia, and there it was, dominating the cen­ and warns that the United States will bearthe entire respon­ ter of the "international news " page of the Soviet govern­ sibility for the consequences with which the continuation of ment's newspaper: an article titled "Behind The Scenes of such actions is fraught." Events: One More Scandal. " Datelined "New York, March Diplomatically, to blame the U.S.A.for a mine laid by 11, TASS, " the Izvestia article described "the scandalous ties Nicaragua's anti-Sandinistarebels is equivalent to the United of the Reagan administrationwith LaRouche... [which were] States having moved to declarewar against the Soviet Union, exposed in a special report on NBC television. The proof was say, back in the 196Os, because a Vietcong platoon attacked so weighty that the White House did not even try to deny a U.S. Army patrol in South Vietnam. it ... . The White House was forced to acknowledge the The State Department, however, decided to do nothing existence of secret ties which the National Security Council about this matter except quietly "reject the Soviet protest. " of the United States and the CIA maintain with a neo-fascist The Soviet government's newly articulated foreign poli­ organization calling itself the International Caucus of Labor cy of "one and sole superpower " which began with its March Committees.. .[which, ] headed by its 'Fiihrer' Lyndon H. 12 Izvestia attack against the "LaRouche-White House con­ LaRouche, Jr.is striving to undermine the influenceof com­ nection, " was completely elaborated in an unusual lead edi­ munists and other left forces among the workers and student torial of the Communist Party daily Pravda on March 23, youth.... " 1984, the first anniversary of President Reagan's celebrated Hartman went to his meeting with Gromyko ariyway.We March 23, 1983 speech announcing a s�ategy of Strategic have reasons to believe that Gromyko rubbed Hartman's face Missile Defense based on beam weapons, a strategy widely in Izvestia's international news page: "Reagan thinks in pri­ identified with Lyndon H. LaRouche, Jr. vate what LaRouche says in public, " he could have echoed Dobrynin's complaints to Shultz. At any rate, Gromykomade 'Focus of evil' it clear that there will be no negotiations with the Reagan We quote fromthe arrogantPravda editorial: "By contin­ administration, back channel or no, Kissinger or no. Later, uing to tread the path of preparing for nuclear war on the sources reported that wasHartman not given much of a chance ground, on the seas, in the air and now in outer space, Wash­ to speak at all. He was subjected to "one and a half hours of ington inevitably places itself in opposition to the fundamen­ bristling, unmitigated vitriol, " one diplomat said. tal interests of all people and indeed becomes the 'focus of The next day, Brent Scowcroft and his team arrived, evil' it is so busy trying to locate.. . . proudly brandishing a letter from President Reagan and de­ "For many years now, especially after the coming to manding to see Chernenko. He never saw Chernenko. He office of the Reagan administration, the American side has stayed in Moscow for five days waiting .around to see Cher­ tried in vain to convince people that the best way to quench a nenko. He was told that as a courtesy to a retired American fireis to pour oil on the flames, while the best way to enhance general, he would be permitted to see Deputy Foreign Min­ security is to pile up more and more heaps of weapons.And ister Korniyenko.In the end, Henry Kissinger's "presidential what is the result?This policy is disorganizing international envoy " leftMoscow with his tail between his legs. relations, creating crises in the economies of even developed A week later, the State Department declared itself "slight­ capitalist states, bringing whole continents onto the brink of ed." These fellows really know how to take a hint. When, bankruptcy and confronting the United States itself with in­ however, somebody spits in their face, it is a differentmatter. soluble internal problems, " Pravda said, assuming for the They simply sit there smiling and saying nothing. This is first time the role of champion of the economic interests of what in fact happened a few days after the "slighting " of both "developed capitalist states, " and Third World debtor Scowcroft. nations.

EIR April 10, 1984 International 31 Paris Beam-Weapons Conference Report

'We need a good, expensive arms race' by Laurent Rosenfeld

So far, the French press has ignored the most important ons is everywhere, but now we have to mobilize resources military strategy conference of the year in France-the March for a crash program. And for this, we also need a new world 23-24 meeting, sponsored by the Fusion Energy Foundation economic order, we need great projects sucl�as a trans-Afri­ and featuring Lyndon H. LaRouche, Jr. , on developing di­ can high-speed railway like France's TGV." rected-energy beam weapons against nuclear missiles. But the conference had no sooner closed its sessions in Paris than Top names in beam-weapons defense its impact reverberated in statements by French political lead­ Culminating a year-long series of major conferences in ers and the press. European capitals, the Paris meeting heard many of the best The meeting, on the firstanniversary ofPresident Ronald known figures in the pro-beam defense community of both Reagan's speech announcing the scrapping of the old Mu­ Western Europe and the United States. Cheminade is secre­ tually Assured Destruction doctrine and its replacement by tary-general of the European Labor Party of France, which the doctrine of Mutually Assured Survival, drew over 200 has led the political fight for the new ABM systems; speaker persons, despite a campaign of intimidation and blackmail Helga Zepp-LaRouche chairs the co-thinker European Labor led by Henry Kissinger that included threats to LaRouche Party of West Germany. and to his top representative in France, Jacques Cheminade. Other speakers were Dr. Jonathan Tennenbaum, editor The presence of 30 to 40 military officers and representatives of the German-language Fusion magazine; Dr. Giuseppe Fi­ of most of the political parties in France, as well as many lipponi, director of the Italian Fusion Energy Foundation; unofficialrepresentatives of the government, shows how much noted American scientist Dr. Robert Budwein; EIR Wiesba­ the beam-weapons idea has penetrated French social and den bureau chief Philip Golub; EIR's director in Europe, political strata. Michael Liebig; French Gen. Etienne Copel; Colonel (ret.) Cheminade, the chairman of the France and Her Army Marc Geneste, vice-chairman of the Paris Center for the Cornmittee set up last June to promote beam defense, com­ Study of Total Strategy, considered "the father of the French mented March 27 that the beam-weapons policy is just about neutron bomb." everywhere in France now. "President Fran�ois Mitterrand PEF Director of Research aUwe Parpart-Henke led a final called for beam defense in The Hague in February. Prime roundtable discussion with French Col. Philippe Debas, ital­ Minister Pierre Mauroy followed suit a week later. Last ian Colonel Magliano, a senior member of the Italian Social­ ' weekend, '.' Cheminadecontin ued, "the top French opposition ist Democratic Party, and EIR contributing editor Christo- figure, Gaullist RPR leader Jacques Chirac, called for a Eu­ pher White, who elaborated on the economic base for a beam ropean ABM defense program, and stressed the need for weapons program and for facing the Soviet challenge. West every European, and particularly the West Germans, to have German Gen. Heinz Karst sent a written contribution to the the feeling of really being defended." roundtable. By Tuesday, March 27, the major Paris daily Le Monde carried an article by editor Michel Tatu reflectingthe present LaRouche: 'I must defend Europe' official policy, giving the arguments for and against beam Lyndon LaRouche, known worldwide as the firstto call weapons, and concluding that "France has no intereSt in for a "crash program" for beam-weapons defense in early seeing both superpowers cover themselves with defensive 1982, keynoted the conference. "As many of you know, I am barriers. But since they are doing it anyway, how could running in the primary elections in the United States. I am France remain behind?" Then on March 29, Le Figaro re­ like an old horse in a horse race. But I have the advantage on ported that French defense ministry officials claim that French my opponents: I am running in the right direction and my "power lasers will be able to destroy satellites" within four opponents are donkeys running in the wrong direction," he years. began. Cheminade explained to EIR : "The issue of beam weap- "If a Hart-Mondale ticket gets elected," LaRouche con-

32 International EIR April 10, 1984 tinued, "then we better build a spaceship and go to colonize challenge, he concluded. Mars, because life is going to become impossible on this U.S. scientist Robert Budwein told the audience, "The planet. And if Reagan is re-elected while remaining under development and deployment of defensive weapon systems the control of Kissinger and his friends, then the disaster is are essential to both the stability and deterrence of a nuclear almost as grave." war. The reason is that we cannot rely on deterrence by the "Our aim," LaRouche said, "is to save civilization." Some threat of retaliation only; what if it fails? people in the United States may want to decouple Germany "Our nation must plan for this eventuality. If we do that from the United States, as Kissinger wrote in his March 5 in a realistic and serious manner, then we will greatly enhance Time magazine article; but if we lose Germany, Europe will the chances that deterrence will succeed. And, in the event go, and, next, Asia, Africa, and the Middle East will go. that we do not succeed in avoiding a nuclear war, we will at And we will end up fighting on our own territory. "I am least have a chance of surviving and 'winning' such a war." committed to defend Europe, because I am a patriot, but, Budwein ended with a message to the Europeans present from even more , because, besides being a patriot, I am a member Dr. Edward Teller, an outspoken advocate of beam weapons of civilization." defense systems: There need be a closer collaboration be­ Replying to a question concerning delays in the devel­ tween the United States and its European allies, as well as opment of beam weapons, LaRouche said, "Had I been elect­ other Westerncountr ies, and the United States wants to share ed President in 1980, we would already have some form of thesetechnologie s, as well as their development, with Europe. antiballistic-missile beam weapons, perhaps not a foolproof Giuseppe Filipponi, the president of the FEF in Italy, system, but we would be better off now than we are ." The used the example of the Malvinas War, in which the British timetable for development, he stressed, is a political ques­ fleetturned outto be barely defendable against sea-skimmer tion; if a full crash program were begun now , something missiles such as the Exocet or the Harpoon , to describe how would be available in a few months. "So, the delays essen­ conventional anti-missile systems are ineffective. The only tially depend on us. We must commit ourselves to a good, solution for defending naval units is the use of laser and expensive arms race." particlebeam defense systems. LaRouche, still denied the Secret Service protection he is legally due as a major U.S. Democratic presidential can­ 'Force de frappe' is not enough didate, attended the conference in the face of physical threats. General Etienne Copel, former deputy chief of staff of Henry Kissinger had phoned French politicians, asking them the French Air Force, asserted that France cannot continue to to sabotage the conference. "LaRouche and Cheminade are rely only on its independent nuclearforce de frappe and must people that I hate. They are personalities to be shot down," prepare for a conventional and chemical attack by the Soviet Kissinger is reported to have said to a French political figure. forces. The only way to call any bluff by the Warsaw Pact, It took an international mobilization of citizens from many said Copel, is to rapidly develop and deploy the neutron nations to ensure the necessary security protection for the bomb, a weapon that with its low blast and high radiation can LaRouches during their Paris visit. An advertisement was break any blitzkrieg offensive. These weapons should ob­ taken out in two major French dailies debunking the slanders viously be deployed in West Germany, near the East German that Kissinger's friends were spreading in France. One of and Czech borders. these lies is that the Fusion Energy Foundation must be KGB­ General Copel's name was front-page news in France in linked, since beam weapons would annihilate the credibility the two weeks before the conference, since he had resigned of "nucleardeterrence ." The ad asked, "Do Kissinger's friends just 15 days earlierover his disagreement with some features in Paris mean that President Reagan, who announced his of the French defense policy. 'Mutual Assured Survival' doctrine one year ago, is also a Jacques Cheminade detailed how the French deterrent KGB agent?" has become obsolete, and the NATO doctrine is "one strategy

too late."He , too , proposedthe deployment of neutronbom bs, A Euro-American crash program as well as a real space policy and a modernization of the In his introductory speech, Jacques Cheminade said, "We French strategic forces. Cheminade called for a national mo­ want to gather people who share an identical design-the bilization for defense, and against Kissingerian decoupling conviction that Europe, that the great European classical of Europe fromthe United States. culture can and must be defended." Dr. Jonathan Tennen­ The tradition of the great French military engineers Vau­ baum of the FEF reviewed the scientific developments that ban, Guibert, and Gribeauval, the great Lazare Carnot, the led to the possibility of developing beam weapons, showing founder of the Ecole Polytechnique , and Charles de Gaulle, how far the Soviets are ahead of the West with an effort about was a tradition of emphasis on firepower and mobility, he lO times that of the United States. While President Reagan's stressed. "Beam weapons combine these two parameters bet­ speech of one year ago was a step in the right direction, a $2 ter than anything else so far." Cheminade concluded with billion U. S. program for beam weapons development is far quotes from de Gaulle: "Let the United States, Europe, and from being the crash program that we need to face the Soviet France together do their duty. "

EIR April lO, 1984 International 33 The fight against cultural pessimism workable and self-defeating for the Western Alliance"; and On the second day of the meeting Helga Zepp-LaRouche Col. (ret.) Marc Geneste, vice-chaiiman of the Paris Center called for a "fight against cultural pessimism, appeasement, for the Study of Total Strategy, sketched the history of the and capitulationism." She warnedagainst "the illusions about strategic doctrines of the WesternAllia nce, showing how the a new ' springtime' in the East- West relations," and explained present doctrine is bankrupt. that there is little time leftto save Europe. "It is useful," she The final roundtable was opened by Uwe Parpart-Henke, said, "to look at three problem areas in an interrelated way: director of research of the FEF in New York. Parpart took up

1) European-American relations, 2) the internal political, Leibniz's formula for kinetic energy (E = mVl) to show the economic and mnitary situation in Western Europe, and 3) formidable advantage of weapons whose velocity is close to the specific situation in the Federal Republic of Germany." the speed of light, and Max Planck's formula (W = hlvD to While "the U. S. nuclear umbrella has been the essential show how lasers and other beams can induce negentropic substance of the Western Alliance since 1949, and the sole effects by being "tuned" to their targets and induce resonance obstacle which has prevented the Soviet Union from engag­ effects in them, thereby destroying them. On military strat­ ing military adventures," it is clear that the Soviet priority egy, he argued that there is no basic difference between has been "to establish hegemony over Europe up to the At­ "strategic" and "tactical" weapons, nor between "defensive" lantic and to simultaneously wipe out any American influence and "offensive" warfighting. Only stupid liberalism prompt­ from the continent." And if Europe falls into the Soviet sphere ed countries to rename their "War Department" a "Defense of influence, she asserted, then it is only a matter of time Department" or defense ministry , he said. before the Soviet Union becomes the only superpower. The main problem today in Euro-American relations is tendencies towards decoupling, as expressed in the Kissinger March 5 Time piece. Kissinger, Hart, Mondale, and Carring­ Chirac : 'Europe must make ton are worting, she said, on a "New Yalta agreement" with the Soviets, based on the decoupling advocated by State its own defense effort' Department senior official Lawrence Eagleburger and U.S. Ambassador to Bonn Arthur Bums, who proposed reunifying From La Lettre de la Nation of March 26, 1984 . Germany in the context of a "neutralized" (i.e., Soviet-con­ trolled) Mitteleuropa. "Europe must make its own defense effort by negotiating, Within Europe, she said, the European Community has in the form of a treaty, a new European defense alliance," reached a deadlock and is being destroyed by Margaret declared Jacques Chirac on Saturday March 23 in Nogent sur Thatcher, who wants to implement Peter Lord Carrington's Marne, in closing remarks to the second convention of RPR­ "New Yalta" policy. It is clearer now than ever that French Banque (an association of banking and credit businesses). President Charles de Gaulle was right in opposing Britain's The President of the RPR proposed that the Europeans entry into the Common Market . But there are also the cases "imagine and discuss, for example, the development of an of Denmark, Belgium, and the Netherlands, which have re­ anti-missile system in which the Federal Republic of Ger­ fused the stationing of the Euromissiles; there is the "March many could participate." on Rome" organized by the Italian Communist Party to pre­ To Jacques Chirac, it is indispensable to reactivate public pare a putsch or a coup de force; there are the incidents at the opinion in the context of the European elections, especially Franco-Spanish border. to establish a closer political cooperation. As for the Federal Republic of Germany, Soviet propa­ This cooperation should be based mainly at the structural ganda has convinced a large section of the citizens, including level upon the "creation of a permanent European secretariat" most of the youth, that their country's enemy is not Moscow, and the installation of military means of intervening in the but Washington. Even while opening the door to a Finlan­ world, whenever European interests are jeopardized. dized "reunification," the Soviet press preparing the pretext "It is indispensable," he said, "that each European, es­ for a possible invasion by writing of new Nazi tendencies in pecially theGerma ns, have the conviction of being defended West Germany. The Soviet Union portrays itself as the "peace­ at his frontier." loving victim of the U. S. aggressive and provocative policy. " The plan for a "new European defense alliance" should In fact, as Mr. LaRouche had said the day before, the only be launched, based on a "firming up of ties between Europe provocative act of the United States was to disarm itself. and the Atlantic alliance, and especially the Americans." "Europe must," added Chirac, "make important sacri­ Changing the present NATO doctrine fices for its defense in the face of the integrated logistics of Michael Liebig of EIR spoke on the need to change the the Warsaw Pact forces." He deplored "the present inability present NATO doctrine of flexible response, "which has al­ of Europe to coordinate its efforts at the heart of NATO and ways been strategically unsound," and has now become "un- with France."

34 International EIR April 10, 1984 Since early February, the Khomeini regime has escalated its kidnapping of young boys to send to the front. In February the legal draft age in Iran was lowered to 16 years of age. Iranian sources report that there has been an outcry from parents of young boys in Teheran who have disappeared from Khomeini legalizes elementary schools only to tum up on the war front. Boys from the fourth grade of several Teheran schools were sent in human butchery to "logistical training." Taheri reports another phenomenon as grotesque as it is bestial: Since the imposition of Khomeini' s qissass system, by Judith Wyer up to 700 of Khomeini' s Islamic judges now jet around Iran holding makeshift courts, often at airports, where summary Just over a year ago, the dictatorship of Ruhollah Khomeini executions are sometimes conducted on the spot. Ayatollah adopted a so-called Islamic legal code based on qissass (the Khalkali, who earned the title of "hanging judge" for his Farsi word for retribution) which has increased the already scores of executions just afterthe Khomeini takeover, holds barbarically high number of executions in Iran. The qissass the record for having convicted and executed 53 prisoners in system has produced over 2,500 executions, many of them one night, during a "stopover" in the Kurdish town of againstpolitical opponents of Khomeini. According to a group Sanandaj . of Iranian lawyers who have just exposed the qissass system, Recent reports from human-rights activists indicate that mutilations such as severing the left arm-to which 1,700 there are about 400 prisons and torture centers administered Iranians have been subjected-are also common forms of by the likes of Khalkali, throughout Iran. Despite efforts to punishment. So inhuman is Khomeini's form of justice that expedite executions there are still an estimated 100,000 pris� his own Islamic Republican Party refused to allow the Iranian oners being held, including women and children. According pressto write about it. to Iranian exile Khandran Aryan, who testified at the just concluded 40th session of the U . N. Human Rights Commis­ Death for 'thinking evil thoughts' sion (UNHRC), there are many infants born to imprisoned Amir Taheri of the Sunday London Times reports that Iranianwomen . These children later develop rickets and pa­ among the crimesfor which such punishment has been dealt ralysis from malnutrition and poor sanitation. are "insulting the leader," "reading heretical books," and The UNHRC session marked the first strong U.N. con­ "thinking evil thoughts." Prostitution, female adultery, and demnation of Khomeini's crimes. But the human rights homosexuality are among the most harshly punished crimes. movement, which played a major role in ousting the Shah, Public hangings of women are not uncommon today in Iran, only raised a voice of protest once Khomeini' s crimes became including pregnant women. A murderer can go scot free, so grievous that they could no longer be ignored. The silence however, by paying one of themullahs (Shi'ite Muslim priests) which has predominated up to now contributed in no small who act as judges about $300. measure to the deaths of as many as 500,000 Iranians under Death-worship is the ideological underpinning of Khom­ Khomeini's Dark Ages dictatorship. eini's fundamentalism. Khomeini himself has affirmed that millions of Iranians "corrupted" by the influence of the pre­ The chemical-weapons question vious regime, be eliminated. The deployment of thousands At the same time, the United Nations, the U.S. State of children and adolescents as cannon fodder to the four­ Department, and other bodies have upheld Iran's claims that year-longIran-Iraq war has proved to be Khomeini' s primary Iraq is using chemical weapons banned by international meansof conducting genocide .. agreement since shortly afterWorld World I (see EIR , March Martyrdom has become a national cult in Khomeini's 27). But, according to the French magazine VSD , there is Iran. During the fifth anniversary of his takeover of Iran in evidence that some of the Iranian patients reported to have ' February, a fountain of red-colored water representing the been stricken by this chemical weapons may have been sub­ bloodof Iran's martyrs south of Teheran was unveiled. That ject to attacks from the Iranian regime itself! Some of the month, the Islamic regime announced it was expanding a patients in European hospitals, according to YSD, were at­ cemetery outside the central Iranian city of Isfahan to hold I tacked by Khomeini's forces as members of the opposition. million martyrs. Moreover, in early March, the speaker of the Iranian Iran is spendingmillions of dollars to expedite the burial parliament, Hashemi Rafsanajani, publicly stated that Iran of its dead. Since the upsurge in fightingwi th Iraq two months had the ability to make chemical weapons, would do so, and ago, Iran has increased its imports of cloth from Turkey for would use them against Iraq if Iraq's alleged use of them did funeral shrouds. A textiles factory in Izmir reported in March not stop. Thus the uproar about Iraqi weapons may have been thatit sold its entire production quota to meet Iranian orders. a pretext for Iran's broad-scale use of such capabilities.

EIR April 10, 1984 International 35 services that Khomeini may put these weapons in the hands of terrorist networks. A bombing of the Intercontinental Hotel in Amman, Jor­ dan on March 26 is seen as the trigger for a terrorist activation aimed at the "Lebanization" of Jordan. Plans to assassinate King Hussein were, according to one Middle East source, a Islamic terrori sts topic of discussion during Aliyev's visit to Damascus. The Jordan situation has been further targeted by the threaten the We st fanaQ-cal Sharon-Eytan wing of Israeli intelligence--ilie "Terror Against Terror" unit responsible for recent terrorist by Jeffrey Steinberg attacks against Arabs inside Israel and the occupied West Bank. TNT is directed by RafiEytan directly from the office of Prime Minister Yitzak Shamir. Ariel Sharon and others hit AU.S. consular official in Strasbourg, France and the French the ceiling in February when the Reagan administration en­ cultural attache in Beirut were the targets of assassination dorsed the arming of a Jordanian Rapid Deployment Force at attempts by Islamic terrorists on March 26 and 27. U. S. the same time that King Hussein continued to house the envoy Robert Homme and French attache Sauveur Gliozzo moderate PLO leadership of Yasir Arafat. both sustained multiple bullet wounds but survived. The Rev­ According to an unconfirmed report, Sharon representa­ olutionary Armed Lebanese Fraction (RALF) claimed credit tives recently huddled with KGB-linked oil magnate Armand for both shootings. Hammer to wrap up an Israeli-Soviet agreement encompass­ According to U.S. and French intelligence sources, RALF ing the early elimination of King Hussein and the destabili­ has been responsible for a half dozen assassinations of U. S., zation of Cyprus through radical Palestinian terrorist actions. French, and Israeli diplomats in France, Italy, and the Middle East since 1981. The group, believed to be financed by the Target North America Iranian governmentwith logistical backup from Syrian intel­ The most tempting target of the Moscow-Teheran-Tripoli ligence, is said to draw upon both Arab and Western Euro­ axis is North America. From May through November 1984, pean terrorist networks. One French source told EIR that the there will be a World's Fair in New Orleans, the Olympic same networks were believed to have been behind the assas­ Games in Los Angeles, the Democratic and Republican pres­ sination February of Leamon Hunt, the U. S. head of the Sinai idential conventions in San Francisco and Dallas, and tours peacekeeping force and a top Middle East intelligence of Canada by Queen Elizabeth II of Britain and Pope John specialist. Paul II. The day of the hit attempt against Homme, a team of bank While the U.S. Federal Bureau of Investigation and its robbers claiming in a communique to be from the Italian Red director, William Webster, continue to publicly downplay Brigades, who are supplied with arms by the Libyans, robbed the magnitude of the terrorist danger, the Immigration and $20 million from the Rome central offices of the Brinks Naturalization Service reportedly issued an internal report Armored Car company. the third week in March acknowledging that some 7,500 Iranians are "missing" inside the United States. Many of them Damascus and its allies were smuggled in during the Carter-Mondale administration This terrorist activity coincided with threats against the and have established a terrorist interface with U.S. radical West by the Khomeini and Qaddafi regimes, just days after groups. the Soviet Politburo's top "Arabist," Geydar Aliyev, com­ EIR has learnedthat on Feb. 15, a meeting in Teheran of pleted an unusual week-long "working visit" to Syria (see the "Islamintern" Assembly of United Islamic Movements, Middle East Report, page 39). While Aliyev was in Damas­ the umbrella for Khomeini' s international terrorist opera­ cus, U.S. embassy security officialsthere received warnings tions, was devoted almost exclusively to the plan for violence that Syria had dispatched a three-person hit squad composed in North America. Reportedly, the Iranian embassy in Nica­ of two Iranians and a Palestinian to Athens to assassinate the ragua has been designated as the command center for these U.S. ambassador. A high-level security alert was called in plans. A terrorist training center just outside of Managua the Greek capital and on Cyprus, where the terrorists were housing upwards of 1,000 Iranians, Libyans, Nicaraguans, believed to be staging for the attack. and so forth , is believed to be the staging area for terrorist Other theatres of terrorism are being carefully monitored. penetrationof the United States fromboth Canadaand Mexico. On March 18, Iranian president Rafsanjani threatened to Meanwhile, some U.S. law-enforcement agencies are unleash chemical warfare against U. S. forces inside Leba­ investigating whether the United Freedom Front, the group non. Under East German and North Korean supervision, Iran responsible for recent bombings of the U.S. Capitol and at a is known to be stockpiling vast amounts of deadly chemical half-dozen corporate officesin the United States, is financed weapons, and it is believed in U . S. and European intelligence and directed by Libya.

36 International EIR April 10, 1984 Egypt: an urgent test case for America's policy toward Mr ica by ThierryLaleve�

Although most media coverage of Egypt treats that country strategists were committed to sabotaging relations between as part of the "Middle East," in fact Egypt is the gateway to two countries. There is a strong parallel to the early 1950s the African continent and the major political and economic when the new President Nasser was doing his best to root out center for Africa. Between a Middle East region tom apart Britishimper ialists' influenceon the country, calling on U. S. by more than 30 years of conflicts and an African continent President Eisenhowerfor help. What was asked for were not ravaged by local and regional wars and now faced with mass weapons, but economic aid and participation in one of Egypt's starvation, Egypt could become the focal point from which major projects, the construction of the Aswan Dam. The fact solutions to these ills can be discussed and implemented. It that developing good relations between Egypt and America was in Cairo in 1977 that all the countries of the Middle East would pave the way for an early settlement with Israel was and Africa met for the firsttime . Egypt's African dimension is uppermost in the minds of the leadership in Cairo, and this has been proven by Egyptian President Mubarak' s recent African tour of Somalia, Kenya, AsJar as the State Department is Tanzania, Zaire, and Morocco, as well as the frequent visits concerned, Egy pt is not America's of Minister of State ButrosGhali to numerous countries where ally. This was concretely proven Egyptian technicians are requested. Of particular importance are relations between Sudan and Egypt. Whatever happens during Pres ident M ubarak's talks in one country affects the other immediately, negatively or in Washington. positively. Egypt's basic idea is to foster not merely local development, but regional units of development, an Egyptian specialist recently outlined to EIR . For example, the special­ ist stressed, if it weren't for Qaddafi, the best regional path obviously not the concernof the anglophile State Department of development would be to form some kind of close rela­ led by John Foster Dulles, which vetoed the project. In a tionship between Libya, Sudan, and Egypt, and then Sudan, similar way, Dulles and his friends in France, Britain, and Ethiopia, Somalia, and so forth . Underlining such proposals Israel concocted the 1956 Suez crisis, unleashing 25 years of is the complete understanding that "peace and development wars and instability in the region, several times bringing the are closely interdependent," as was stressed recently at a entire world close to nuclear confrontation! seminar on Africa by the foreign ministry, because "while a Dulles is not around anymore, but the same crowd re­ better future for mankind is impossible without peace, the mains; and Henry Kissinger, back in the political scene in spread of poverty and deprivation coupled with a widening Washington, is quietly puiling the strings of what Reagan gap between the rich and the poor can only lead to mounting believes is his own foreign policy. And Egypto-American frustrations and world tension." relations will soon be on a collision course. Officially, the United States, Egypt, and Israel are "part­ Cairo and Washington ners in peace ," according to the words written in the 1978 As such issues are raised and discussed, another one, Camp David agreement, but these words don't have the same much more bitter, comes up: the state of Egypto-American meaning and weight in Washington, Tel Aviv, and Cairo. relations. With 10,000 years of history, most Egyptians know Seen from Cairo, America's foreign policy seems utterly that history does not quite repeat itself; there are similarities incomprehensible, and even pro-American officials within at most. In today's Egypt there is nonetheless an uncanny the government can find no other explanation than that the feeling of deja vu when it comes to Egypto-American rela­ United States is fundamentally not interested in peace, and tions. It looks to them as though Washington bureaucrats and not interested in economic development, but wants "political

EIR April 10, 1984 International 37 control over the entire African continent and the developing Is America Egypt's ally? sector to grab the raw materials." This may sound simplistic, It is a question worth asking in Washington these days, but little to the contrary has emerged from the United States because, as far as the State Department is concerned, Egypt recently . is not America's ally. This was concretely proven during At the same seminar of the foreign minis'try quoted above, Mubarak's talks in Washington, one observer said. That re­ an ambassador complained loudly that "sometimes African fers also to a particular White Paper policy statement released colleagues and myself, fed up and frustrated, would, while in early February by the State Departement in cooperation representing our respective states at international forums, with the New York Council on Foreign Relations, the Amer­ present our problems to representatives of the developed ican branch of the Royal Institute of InternationalAffairs of countries ....They did listen to us and many times assured London. The paper, which was based on several months' us of their convictions that our presentations were logical and research by State Department officials in the United States, viable ....Alas , I can never recall that these verbal utter­ London, and Egypt concluded saying that Egypt and Sudan ances were backed up or followed by any actions. . . ." He "should not be considered as reliable allies of the United added that in further discussions they were told that "as long States as there is no way to. prevent their takeover by Islamic we believe that the technological progress that made it pos­ fundamentalist elements." This is no research paper, but a sible for orbiting space ships would be reflected also in proj­ policy statement and a policy orientation. As the Washington ects to eradicate hunger, malnutrition, epidemics, and dis­ bureaucrats know, there is a sure way of preventing the take­ eases in developing countries, as long as we continue to live over of Egypt and Sudan by Islamic fundamentalists: going with these dreams, illusions, and faith in humanity, then we for the kind of economic aid and cooperation which, firstly, had better shed all hopes for any substantial improvement in could transform Sudan into Africa's breadbasket, and sec­ the lot of the developing countries." ondly, could help Egypt win its war against the desert by . To a large extent, U.S. policy toward the region is prov­ speeding the process of reclaiming thousands of hectares of ing that official's point. This was also underlined during the sand into fertile land. But that's not Washington's policy, visit of Egyptian President Mubarak to Washington in late these days. February. No other President in the past year gave so much The State department is unfortunately right, at least on importance to the United States as Egypt's, travelling to one point: If the United States maintains the same level of Washington no less than three times. This was clearly mis­ cooperation with Egypt as it does now, if AID goes on sab­ understooc,l; for the Egyptians, it underlined the willingness otaging from the outside and from the inside the national to consult with a "partner in peace," for the administration it economic development of the country, as an Egyptian official created the illusion that Egypt could be considered a mere recently described it in New York, then there is little hope vassal . When it came to concrete discussions, all Egyptian for Egypt. But that is not the issue; the issue is that Henry demands were bashed out and very undiplomatically thrown Kissinger, the State Department, and their likes are already into the wastebasket. According to observers who followed committed to such a disaster happening. Mubarak's last visit carefully, it was an entire failure on What does the State Department really want from Egypt? political, economic, and military issues. Egypt's request to Do they want to send the Egyptians back to the Soviet fold? receive treatment similar to Israel' s-not with respect to the The Egyptians, who had an unfortunate taste of the Soviet quality of military deliveries (an, impossible demand any­ brand of "socialist" colonialism, as they say, have certainly way) , but with respect to their financial side, pointing out no such wish, but what is the choice? The chosen alternative that the United States had not hesitated to give Israel several for now is to walk on a tightrope and Egyptians know it; to debt moratoria on their military purchases-were met by swallow American insults while making new openings to the dead silence, and there was no discussion. Mubarak's new Soviets or their allies-hence Mubarak's get-well telegram proposals on the question of the Israeli-Arab conflictand the to Soviet-allied Syrian President Assad a few weeks ago. need for a dialogue between America and the PLO met the They have learnedfrom history, and it is not difficultfor same fate , as did other proposals and discussions on Egypt's most to see a trap in the sudden decision in Washington to economic and financialrelationship with the United States. floodSuda n with weapons while for years badly needed eco­ Egypt has to rely on the United States for regular wheat nomic aid was refused. Isn't it the case that some in Wash­ deliveries, as well as for financialhelp to buy such deliveries. ington would be very happy to see Egypt and Sudan engulfed While this could be a mere aspect of a broader relationship in a several-year war of attrition with Ethiopia and Libya, between the two countries, the American side has been sys­ making them more dependent first, then expendable at will, tematically handling it in an arrogant way to remind Cairo, just as a variant of the 1956 scenario? That will not be easy almost daily, that it is in a dependent position and should not to achieve, as the present leadership is ready to use all avail­ forget it. Proposals to have such an insulting practice change able weapons to fight for its development and its newly have been refused: the State Department, AID, and other achieved peace. In such a fight, the real loser may not be departments like it this way. Egypt but the United States.

38 International EIR April 10, 1984 MidcUe East Report by JudithWye r

Moscow tightens its grip on Syria ties, were shut down, including one Politburo member Aliyev' s trip to Syria set up a "strategic runby Rifaat al Assad. consensus" between Moscow and Damascus. Among the changes which Assad made in his cabinet was the appoint­ ment of three vice-presidents . After Khaddam, himself considered to be an ally of Tlas, is Rifaat al Assad, fol­ lowed by Muhammed Zuhahr Mas­ harqah, a· long-time confidant of the Syrian president and activist in the rul­ ing Ba' ath party. Assad who is known Within five days of the March 8 whereby Syria's escalation of con­ for his strong-man rule, has not shared collapse of the government of Syrian frontation with Israel appeared an ur­ power since he appointed a shortlived PresidentHafez al Assad, Soviet Dep­ gent Soviet objective after President vice-presidential post in 1974. uty Prime Minister Geidar Ali Reza Ronald Reagan decided to curtail the The military faction, which in­ Aliyev arrived in Damascus. The next U.S. confrontation with Syria." cludes the Syrian intelligence chief, day, a new cabinet was formed which Abdul Halim Khaddam, who was Ali Duba and the influential head of will further Moscow's bid to marked­ upgraded from foreign minister to first the Syrian Third Army, ShefiqFay ez, ly upgrade its military alliance with vice-president in the cabinet shuffle, made critical gains at the expense of Syria. is to make a tour of the Persian Gulf Rifaat al Assad, Le Monde reported The daily At Qabas of Kuwait re­ oil-exporting states in order to expe­ on March 13, and that this signals the ported March 19 that through Aliyev dite the process of establishing rela­ eventual dismantling of Rifaat' s crack the U.S.S.R. has pledged to provide tions between them and the U.S.S.R. special forces, which act as a kind of Syria with advanced military technol­ The foremost target is Saudi Arabia. palace guard for the ruling Assad clan. ogy, including the MiG 29 and MiG In the weeks before the collapse of Moreover, it was reported that one of 31 fighterplan es. According to West­ Assad's government, a faction fight the Syrian president's longstanding ern diplomats quoted by the Kuwaiti erupted to the point of military clashes allies, Sharif Barakat, was dismissed daily, Moscow intends to forge a mil­ in the Syrian-occupied Bekaa Valley as the chief of the cabinet. Khaddam itaryaxis with Syria like the "strategic of Lebanon and outside Damascus be­ himself is vying for power at the ex­ consensus" between the United States tween military factions and the special pense of the Assads. and Israel. forces of Hafez al Assad's younger Arab sources caution that despite Aliyev is reported not only to have brother Rifaat. the apparant calm in Damascus fol­ influencedthe composition of Assad's This power struggle emerged in lowing the appointment of the new new cabinet, which is said to benefit November when the Syrian president cabinet, things are far from settled. the military hardliners around De­ was stricken with a heart attack, trig­ There are reports of a new generation fense Minister Mustafa Tlas and Chief gering a succession struggle. Despite of leaders coming up through the ranks of Staff Hikmat Shihabi, but also to his recovery, the infighting did not of the Syrian Ba'ath Party , who are have begun the process of changing subside. firmlyallied to the military . Syria's command-and-control. Mos­ Assad himself is reported to have Rifaat al Assad, well known for cow has pledged to upgrade satellite become suspicious of his ambitious his ruthlessness, has jeopardized the intelligence sharing, and to increase and corrupt brother in the wake of his ruleof the Assad clan and more broad­ trainingfor the Syrian military. illness. "Poster wars" have erupted ly the Alawite Muslim minority from Aliyev finalized an agreement with between the two brothers in Damas­ which it comes. Tlas himself is from Syria to upgrade the Syrian Air Force cus, where brigades of Rifaat-sup­ the majority Sunni Muslim commu­ and "shift its role from defense to at­ portershave plastered the city with his nity which only three years ago fought tack, toward achieving strategic bal­ portrait, only to have the posteri re­ a military battle against Assad. Ru­ ance with Israel," according to Ai placed the next day with pictures of a mors are again rife that President As­ Qabas. This agreement and new arms smiling Hafez al Assad. Late last year, sad's health is failing, which if true deals "heralded a new and practical what are politely known as "charity would invite even more violent power phase of Soviet-Syria relationship ... organizations," actually secret socie- struggles.

EIR April lO, 1984 International 39 From New Delhi by Susan Maitra

Zia reshuffles the deck legations about India are a "smoke­ Army unrest and the fundamentalist establishment challenge the screen" to try to hide widespread un­ plan fo r "Islamic democracy ." rest within the armed forces. Khar, who acknowledges his close and continuing contact with Punjabi officers, was apparently involved in coordinating the coup attempt from his exile in London. Khar told the Press T he removal of two top army gen­ army men hostage, demanding the re­ Trust of India on March 25 that nearly erals, the sacking of three cabinet lease of detained colleagues. 45 officers of th� armed forces and a ministers, and the subsequent ac­ Reports ' of the arrest of a large dozen civilians have been detained in knowledgment of an extensive army number of officers from the Lahore connection with the plot. and more coup plot against Zia ul-Haq have Cantonment, one of Pakistan's mili­ than 400 army officers have been raised new questions about the gener­ tary facilities, and vague references interrogated. ai's hold on power and the prospects from Zia to attempted foreign de­ Khar revealed that this was the for his "Islamic democracy" scheme, stabilization of his regime, came in third coup attempt in the seven years promised to go into effect no later than February. But it was not until March since Zia took power, and is not likely March 1985. These dramatic devel­ 3 and 4-when Zia summarily dis­ to be the last. Many army officers be­ opments, pointing to fissures within missed Gen. Sawar Khan, his num­ lieve Zia is using the army for selfish the institution that is the pillar of Zia' s ber-two man and Vice-Army chief, purPoses, Khar reports , and fear that present and projected rule, coincide and Gen. Mohammad Iqbal Khan, the Pakistani armed services are in with a revolt by the student wing of chairman of the Joint Chiefs of Staff danger of being destroyed as an the Jamaat-i-Islami , the Muslim fun­ Committee-that it became clear institution. damentalist establishment that has something larger was at issue. Alleged brutality in the suppres­ been Zia's main base of civilian polit­ According to senior Pakistani of­ sion of the recent rebellion in Sind ical support. ficials quoted in the British press, a province is said to be one major point The student revolt erupted in Pes­ group of army officers had plotted to of factional polarization within the hawar in February at General Zia's kill Zia while he was reviewing the army . Several months ago, at the first "election" rally. A large section Republic Day parade on March 23. height of the Sind stir, PPP chairman of the crowd began stamping and The plot was reportedly foiled when Begum Nusrat Bhutto had called on shouting "Down with Zia!" An earlier Pakistani intelligence discovered an Zia to step down and hand power over ban on student unions was the pretext, arms cache in the home of an army to Sawar Khan, who would safeguard but the complaint of Jamaat-i-Islami captain in Lahore in January. About constitutional elections. leader Mian Tufail Mohammad be­ 50 military officials were arrested at SawarKhan is otherwise regarded speaks a broader disaffection. Tufail that time. as a soldier of great professionalism, points out that his party-the principal Pakistani officials, these sources known for his strong views about the target of the ban, since "political" ac­ say, have accused Indian intelligence undesirability of involving the army tivity by the other major parties had of masterminding the plot and provid­ in day-to-day administration. He has long before been prohibited-has ing the sophisticated arms and' am­ been replaced by Lt. Gen. K. M. Arif, played a key role in keeping commu­ munition-a charge New Delhi has who aided Zia in a number of crucial nist and leftistgroups out of Pakistan ' s categorically denied. U. S. officials negotiations, including the $3.2 bil­ , universities and labor unions. have stated that they have no evidence lion U. S. military and economic aid "And now General Zia wants to of lndian involvement. deal. Gen. Mohammad Iqbal Khanhas crush us," said Tufail, a distant rela­ Ghulam Mustafa Khar, a wealthy been replaced by Lt. Gen. Rahimud­ tive of Zia. "He is a foolish man, and Pakistani landlord, former governor din Khan, former governor of Balu­ the ban was an act of foolishness. " For of P.u nj ab under former Prime Minis­ chistan and father-in-law to Zia's son. the past two months, student riots have ter Zulfikar Ali Bhutto, and a promi­ The two summarily retired generals rocked Lahore and Karachi, and nent opposition figurecurrently a fac­ were the last of the army commanders hundreds of arrests have ensued. In tional leader with the Pakistan Peo­ who supported Zia in the 1977 coup one recent incident, students took five ple's Party (PPP), insists that the al- against the Bhutto government.

40 International EIR April 10, 1984 Attic Chronicle by Phocion

Condemned to slow death? is now at the beck and call of its Eu­ Andreas lost his fight with economics czar Arsenis and his bid to romarket creditors . Hence Papan­ dreou's straitjacket. make a deal with President Caramanlis . According to the Greek constitu­ tion, only President Caramanlis­ Greece's most substantial political personality of the post-war period and a staunch traditionalist conserva­ tive-has the right to dissolve Parlia­ ment and declare elections. President Caramanlis has made it clear to the Could it be that the time has arrived Papandreou's party bosses, al­ prime minister and others that he will for even this columnist to display a ready in revolt against their chief, are oppose any early elections. A stem measure of compassion toward the arguing that this trend will be unstopp­ and unforgiving sort of paternalist, predicament of Prime Minister Andre­ able next year. Therefore, the party's Caramanlis has privately said that as Papandreou? Consider: best chance is to try a general election "since my Greeks decided to vote for In two and a half years in power, now while the party machine has not a Socialist government, I shall make this man ruined a modest nation's yet crumbled and could still pull off a them drink the whole cup to the bitter economy, defenses, and educational not-too-obvious vote fraud. They dregs. Let them have their Socialist system. He brought it to the forefront warn,corr ectly, that the party's local government for the whole four-year of drug use among nations. He shat­ organizations are about to disintegrate term. No elections before October tered its traditional moral outlook with under the pressure of popular derision 1985." an outpouring of officially sanctioned and discontent. However: the Greek president is pornography. He turnedit into a haven Early in March, Papandreou took elected not by popular vote but by an for internationalterrori sm. He used it the position that he will not allow early election in which only the members of as a lever to help collapse the NATO elections but will try to alter the gov­ Parliament vote . To be elected presi­ alliance. In the spread of all this evil, ernment's economic policy. He there­ dent, one needs two-thirds of the vote. he was motivated by a deep-seated fore launched a factional effort to un­ For the balloting in May 1985, Cara­ hunger for personal power. dercut his Minister of National Econ­ manlis is assured of the 119 votes of Now he faces the following prob­ o�y, Gerassimos Arsenis, known as the conservative New Democracy lem: The political barons of his ruling Mr. IMF Austerity in Greece, and an Party's deputies. He will need the votes party, the PASOK, are demanding that intimate friend of Robert Strange of at least 81 of PASOK's 166 depu­ he dissolve the Parliament and declare MacNamara, the world's leading ad­ ties ifhe is to be re-elected. Therefore , general elections this June 15. They vocate of genocide by economic Andreas has made a rather meek, re­ consider this the most advantageous means. luctant offer to Caramanlis: if you al­ date for their party, rather than the By March 26, Papandreou's fight low me to hold early elections, I will constitutionally scheduled October with Arsenis ended in defeat. Instead give you the votes you need. 1985. Their judgment is correct; it is of being curbed, Mr. Arsenis succeed­ Caramanlis has remained humor­ based on the fact that a collapse of ed in causing the resignation of two ously silent on the subject. According Papandreou's electoral coalition has other ministers and taking over the to reports, he is not impressed with been in progress since January . Wide­ Ministry of Treasury, to add it to his Papandreou's offer because he knows spread disaffection stemming from the control of the Ministry of National what is generally known in the coun­ economic crisis has caused PASOK's Economy and the central bank of try: There will be no other candidate popUlarity to decline from 42% to less Greece. Papandreou was defeated be­ for the presidency to contest the im­ than 28%. Papandreou's ruling party cause Arsenis enjoys the active back- mensely popular Caramanlis. Yet, has lost every local election held this - ing of the IMF and of Greece's foreign ironically, the man is committed to year in various regions and munici­ creditors. The country's foreign debt "punishing" his Greek "children" with palities. The June European Parlia­ having grown from $8 billion in 1981 one and a half more years of Papan­ ment elections are widely expected to to over $24 billion under the manage­ dreou's Socialism and Arsenis' eco­ produce an embarrassing defeat. ment of Arsenis, the Greek economy nomic austerity.

EIR April 10, 1984 International 41 Report from Bonn by RainerApel

Trapped by Dr. K.'s decoupling game em part of Norway, in order to gain Lord Carrington and the West German Social Democrats are easier access to the Atlantic? What would NATO do in case of a new Ber­ joining the push fo r a u.s. pullout fr om Western Europe. lin crisis?" His answer: NATO, that is, West Germany, would have to surrender, because the Americans would not de­ fend the country. "I shall never forget the answer a high-ranking American officer gave me in response to this T he West Germans have reason to tegic weakness of the United States to question in December 1981: If, in case fear the Warsaw Pact: They live next build the British up as the new Euro­ of a conflictin Europe, the firstnucle­ to the Iron Curtain, and Soviet mili­ pean game-masters: They told the oth­ ar weapon were actually used, it would tary buildups and maneuvers hint at er nine EC governments bluntly on lead to complete demoralization of our preparations for a surgical surprise at­ March 27 that if they

42 International EIR April 10, 1984 Dateline Mexico by Josefina Menendez

PAN takes up the Moscow line Rouche's collaborators in the Mexi­ Mexico'sfascist opposition partyasks the U.S. ambassador to can Labor,Party , PLM] , but for your release drug lobby slanders against LaRouche. passivity in the face of this atrocious interventionism. . . ." The PAN's charge of U.S. "inter­ ference" raised eyebrows in Mexico, in view of the documentation circulat­ ed by the PLM showing that the PAN An official spokesman for the pro­ preparing. " is being supported by factions in the fascist National Action Party (PAN) Three days after the PAN's letter U.S. FBI, CIA, and State Department appealed in an open letter to the U. S . appeared, the Soviet government who are out to destabilize Mexico. embassy in Mexico published March newspaper Izvestia quoted the "First Medina demanded that Gavin distance 9 for "immediate action against Lyn­ Camera" broadcast in a lengthy attack himself from the PLM accusations on don H. LaRouche's interference in on LaRouche, whom the paper called this score, but did not quarrel with Mexican affairs ." The PAN has joined "a neo-fascist, an agent of Big Capital LaRouche's charge that the PAN is a up with the U.S. drug lobby and the who loyally serves the interests of the joint project of the Nazi International Soviet press to denounce the Ameri­ ruling classes." and the Soviet KGB. can leader. Medina wrote in his letter: "The The PAN's role in running Mexi­ LaRouche had charged in a Jan. so-called 'Operation Juarez' orches­ co's drug trade (see EIR March 6) is 21 television broadcast: "Right on our trated in the United States by citizen now becoming a national scandal. The southern borders, the Soviet KGB Lyndon LaRouche is aimed at deni­ marriage of the PAN in the state of controls the leadership of an opposi­ grating and slandering my party. . . . Sonora with the local drug mafia was tion political party in Mexico called Our national leadership has submitted blatantly highlighted March 9, when the PAN, and through the PAN cir­ a formal petition to the Mexican for­ the PAN candidate for governor, Ad­ cles, drug-linked circles, the Soviet eign ministry, denying that the PAN alberto Rosas, and the PAN mayor of KGB is deploying terrorism directly is trying to decouple the northof Mex­ Hermosillo, Casimiro Navarro, were into the United States." ico to pay the foreign debt." the special guests of the 1984 gradu­ The PAN's complaint to the U.S. Then the PAN spokesman issued ating class of lawyers-a ceremony embassy appeared five days after NBC a blackmail threat against U.S. Am­ under the sponsorship of Agustin An­ television's "First Camera" program bassador John Gavin: "The U.S. am­ tUnez, the biggest drug pusher in the carried a motley collection of slanders bassador should clarifywhy he is being northwest who has been jailed several against LaRouche, concocted by "re­ so passive in the face of the blatant times for his dope dealing. searchers" for the U . S. drug lobby like interference by his compatriot in Mex­ Antunez is an advocate of the pay­ Dennis King and Chip Barlet. The two ican affairs.... ment of the foreign debt with dirty are frequent contributors to High Times "If Ambassador John Gavin does money coming from the drug trade, a magazine, which promotes the use and not reply, we in National Action will proposal he made on a television show legalization of narcotic drugs. put out the word that he supports this in Hermosillo recently. The PAN's Gerardo Medina Val­ dirty interventionist game. As a mat­ The PAN's smear campaign dez, in his open letter to U. S. embassy ter of fact, since the last century the against LaRouche has failed to stifle press attache Lee Johnson published United States has been working with the influence of "Operation Juarez," a in the PAN 's magazine La Nadon. the group which has maintained pow­ plan to reorganize the debt of Ibero­ demanded that the U.S. embassy of-. er in Mexico [the ruling Institutional America and promote continental in­ flcially join the slander campaign Revolutionary Party, PRI] and has tegration and industrial growth. Mex­ against LaRouche: "If possible, we been in solidarity with all their ac­ ican President Miguel de la Madrid want you to send us, translated into tions, because this is in the interests of began a visit to four Ibero-American Spanish so as to avoid confusion, dis­ the United States .... countries March 26 by calling for information, and high levels of spec­ "We are not blaming you for the closer communication between the ulation, the report on Mr. LaRouche use that the ruling PRI party and sev­ countries of the continent to solve the that the National Broadcasting Cor­ eral Mexican state governors have foreign debt problem and build intra­ poration's 'First Camera' show is made of those mercenaries [La- regionaltrade .

EllR April 10, 1984 International 43 International Intelligence

$2 billion Manhattan Project during World Carrington said that he does "not agree with Di� Sweden capture War II ...succes sfully united science and Mr. Kissinger on many of the conclusions industry on a massive scale." he draws , but his analysis was fairly cor­ Sovietfrogmen? However, a spokesman for the Foreign rect." He added that "one might not agree Office told EIR on March 29: "Her Majes­ with him, but if I look around in NATO , I Reports are circulating that the Swedish mil­ ty 's Governmentis committed to preventing see that Mr. Kissinger is the only one to have itary has shot and captured two Soviet frog­ an arms race in outer space." any ideas about the future of the alliance." men deployed from a mini-submarine Under the March 27 headline "The De­ Lord Carrington is Kissinger's business trapped in the waters around the Karlskrona bate on 'Star Wars': Nuclear Strategies partner in Kissinger Associates, Inc. , a con­ naval base in southeastern Sweden. The Challenged," Le Monde, the daily of the sulting and dirty-tricks firm. Swedes have been engaged in a hunt for French foreign policy establishment, grudg­ On Kissinger's plans for U.S. troop Soviet intruders there since Feb . 9. ingly admited the necessity of joining a now­ withdrawal from Western Europe , Carring­ According to official Swedish Navy re­ irreversible process. ton commented that "naturally, we need U . S. ports , on Feb . 29 at least one and possibly "This program is now starting to become military presence in Europe. but I think til\! two frogmenwere sighted on land, crossing fact-more than $26 billion has been allo­ alliance should discuss these ideas ...." one of the tiny islands encircling the Karls­ cated in Pentagon budgets up to 1989-in­ Carrington added that "detente is not dead, kronabase . cluding directed-energy systems (lasers and but will be continued." The frogmen were escaping from the particle beams), the most futuristic and con­ heavily guarded port waters into the Baltic troversial ones. The point is to study in par­ Sea. A third diver was sighted, but returned allel several different techniques . . . for a , Bonn politican: 'beams to the waters inside the base area. In the multi-layered system," reports Michel Tatu, official version, all three escaped capture . the internationally known Sovietologist and make defense human ' But four independentmilitary-related sources former Washington correspondent for Le told EIR that the intruders were killed or Monde. Bernd Wilz, a Christian Democratic mem­ berof the West German parliament, has made wounded. "The Soviets have beenworking for years the firstpublic statement that beam weapons If these reports are true, it would mean on anti-missile systems .... The French are being discussed in GermllnY. that not only the social-democratic govern­ President has been the most 'motivated' To the Italian daily Il Giornaie, he said: ment of Olof Palme , but also the Swedish leader, besides President Reagan ....Of "The laser is a new concept for defensive military, are covering up evidence that the course, France has no interest in seeing both warfare . In the end, a carbon-dioxide laser Soviet Union has waged acts of war against superpowers cover themselves with defen­ cannon will be able to destroy enemy tanks , Sweden. sive bamers . But since they are doing it airplanes and even missiles, but it will take anyway , how could she remain aloof?" 10 years until the system is perfected," says Tatu argued that if only 0.025% of ene­ Wilz, a member of the parliamentary de­ European press plays my missiles could pierce a four-layered de­ fense committee. fense system, 250 H-bombs would hit U.S. up beam weapons "Certainly, the debate tends to be emo­ cities. Notified by EIR that his arithmetic tional. That is why the public must be in­ was off, he replied, "Embarrassing mistake, The March 27 Financial Times, the City of formed that the laser is a weapon fitonly for I must say. This changes the whole picture . London's flagship daily, carried a feature defense. It will make war more human be­ Hmmm." titled "A New Apollo Project: Reagan's cause it will hit only military targets .... Ambitious Target." "In Bonn , a political decision to give "The 'Star Wars' concept ofa 21st-cen­ Carrington: 'Henry's the laser weapons to the German forces has not tury defense against nuclear weapons . . . yet been taken, but I expect that within this may never blossom into a full-scale umbrel­ only one with ideas' year, the inspector general , the highest mil­ la in space for enemy missiles. itary officialin our country, will recommend "Nevertheless, it could achieve the main In an interview on West German TV , Lord its implementation. I have estimated that U.S.. political objectives--even within this Peter Carrington publicly rejected "those since the idea of the laser weapons emerged century" writes science editor David Fish­ who believe in cheap defense, as beam about 20 years ago, the Bonn government lock, "by seeking a more efficient coupling weapons, for example ," and called for an has spent about 60 million deutschemarks in between the world's greatest scientific re­ increase in conventional defense, instead . this area of research alone ." Wilz added that search base ...and an industrial base .... Asked for a comment on Henry Kissin­ the German initiative on laser weapons was Star wars is seen by some Washington offi­ ger's recent Time magazine statements motivated by Reagan's March 23, 1983 cials as a way of achieving both goals. The threatening aU.S. withdrawal from Europe . proposal .

44 International EIR April 10, 1984 Briefly

• GEORGE SHULTZ met with the mayor of Bethlehem, Elias Freij , and The March 24 issue of Die Welt, West raeli terrorists last year to bomb the Al-Asqa Rashad Shawa, the mayor of Gaza, Germany 's leading conservative daily, mosque on the Temple Mount in Jerusalem. in late March. Both mayors are strong In mid-March, the Tel Aviv commander states: "One year afterRonald Reagan's 'Star supporters of the PLO . Freij urged of the elite Central Police Unit detective Wars' speech ...the technological strate­ Shultz to extend U.S aid directly to gy with which America wants to attain the force, Nitzav-Mishna Assaf Hefetz, was Palestinians living in the occupied goal set by the President is unfolding for suspended for leaking to the press evidence territories. The talks appear to have us ." that the police suppressed a memo he drafted centered on attempting to renew Rea­ a year ago warningof plans to attack Islamic gan's Peace Plan. sites in Jerusalem. Hefetz has obtained a show-cause order as to why he should not Soviets acknowledge • ITALY'S COMMUNIST party be reinstated. He is supported by Israeli Po­ led an 800,OOO-person "March on lice Chief of Operations Zvi Bar. MA S initiative Rome" 60 years after Mussolini 's The anti-Hefetz faction claims the po­ Fascists, as the Red Brigades stole lice have the intelligence only to catch "Arab Pravda's March 23 editorial denouncing $20 million in preparation for a mass criminals," but not Jews plotting to blow up beam weapons also explicitly rejected the terror offensive in Europe . Mutually Assured Survival offers made by the Temple Mount, because the police don't President Reagan, Defense Secretary Wein­ have enough informers among Jews . In fact, • RED STAR, the Soviet military berger, and Lyndon LaRouche last year for the would-be demolitionists are protected daily, printed an article March 28 by both superpowers to develop defensive by Ariel Sharon, minister without portfolio, Maj . Gen. A. Milovidov titled "Tak­ beam-weapons systems . Pravda stated: and Yuval Neeman, science and technology ing Account of the Growing Danger "Demagogy is springing up about some 'no­ minister, among others . of War." Soviet "combat-readiness" ble goals,' about a 'peace-loving' direction and response times have been "radi­ of a certain project ...that the United States cally changed," the article declares, will create a wide-scale system of anti-mis­ confirming that the Soviet high com­ sile defense ...which it could 'share' with DOS fo sters arms flow mand is ina pre-warshowdown mode . the SovietUnion." to Central America Pravda admits that the U.S.S.R. is pur­ • JOHN ERICKSON, an Edin­ suing beam weapons: "However, those in The State Department's sudden support for burgh University specialist on Soviet the U.S.A. who with bragging and self-con­ Iran's Khomeini, by way of attacks against military strategy, told the Swedish fidence demand urgent measures to realize Iraq, has immediate consequences for U.S. press March 29 that the recent mam­ large-scale anti-missile defense programs security in Central America. At issue is the moth buildup of Soviet deployments explained by President Ronald Reagan have conduiting of arms from Iran to the Central around Scandinavia is aimed at cut­ not considered the major and inevitable re­ America region. ting NATO communications lines action of the Soviet Union. And, if anyone This point was underlined by Nicara­ across the Atlantic . was hoping that some kind of 'superiority ' gua's Sergio Ramirez, who announced in the technological sphere will allow the ISRAEL March 23 that he had just returned from a • has moved to strength­ U.S.A. to get abead, then he is risking strong lO-day tour of Libya and Iran, meeting with en its alliance with the Falange mili­ miscalculations . " tias and Druze leader Walid Jum­ Colonel Qaddafi and leading Iranian mul-. blatt, in preparation for the perma­ labs. Ramirez said he had requested from nent partition of Lebanon. Iran and both.countries "weapons to face American the Khomeini-allied Shi'ites are de­ Temple Mount affa ir terrorism in Central America," and both countries are reported to have agreed. nouncing Jumblatt as a Zionist agent collapsed Israeli coalition Such a deal means that the flow of Amer­ and threatened him with assassina­ ican weapons to Iran, which has recently tion. The "Islamic Jihad," which One of the pretexts used for the collapse of stepped up with State Department approval, bombed the U . S. Marines on Oct. 23, the ruling coalition in Israel , which results will ultimately end up in Nicaragua. Such 1983, have also threatened him. Syr­ in national elections on July 23, was Tami an arms flow coincides with an increase in ia has remained silent about the deal­ Party leader Abu-Hatzera's allegation that cooperation between the Soviets and Iran. ings with Israel by its ally Jumblatt, Interior Minister Yosef Burg was incapable Iranian sources report that Iranians have siggesting that Damascus sees them of controlling the Israeli police department. agreed to have the Soviets build two moni­ as part of the partition plan. Police officialsare accused of suppress­ toringllistening posts in Iran, one in Balu­ ing investigation into the conspiracy by Is- chistan and the other in northern Iran.

EIR April 10, 1984 International 45 I • �TIillNational

We inberger clears the deck fo r beam weapons

by Robert Gallagher

u.s. Defense Secretary Caspar W. Weinberger announced President to proceed with "extreme caution" in pursuing his March 27 the appointment of former astronautLt. Gen. James beam defense program. A. Abrahamson as Director of Strategic Defense to carry out "a presidential directive of centralized management" for the 'A very, very high priority' development of "a thoroughly reliable, effective defense" for But Weinberger emphasized that the Strategic Defense the United States and its allies against nuclear weapons. Initiative program had "a very, very high priority, one of the The appointment makes final the establishment of a cen­ highest priorities of the administration and of this depart­ tralized program for beam defense spanning two executive ment." He compared it to the Apollo program of the National departments-Defense and Energy. With the appointment, Aeronautics and Space Administration (NASA) to land a man all authority for research and development of antiballistic­ on the Moon and to its program to build and flythe firstSpace missile (ABM) systems based on directed energy-beam tech­ Shuttle. By implication, Weinberger was discarding the 20- nologies or anti-missile missiles is removed from the hands yeartimetable previously projected by the administration for of the cynics, the naysayers, and the occultists-like Robert making a decision on a beam defense system, not to mention Cooper, director of the Defense Advanced Research Projects building one. The Apollo program reached its goal in eight Agency (DARPA)-and placed under the direction of "a years and the Shuttle program in nine. space pioneer," as Weinberger described Abrahamson, "re­ Thus it seems that the patriotic faction in the administra­ porting directly to me ." tion that supports President Reagan's March 23, 1983 initi­ In response to questions, Secretary Weinberger attacked ative to develop beam weapons is moving out of its foxholes, the fundamental assumption of Henry Kissinger's 1972 ABM under the cover of fire support from Lyndon LaRouche's Treaty-with which the United States renounced its right to presidential campaign. This might spell the beginning of the self-defense-and the doctrine of Mutually Assured Destruc­ end for Kissinger's influence in the Reagan administration. tion. "I have never believed," he said, "in the idea that we On March 28, the present Commander of Naval Opera­ have enhanced our security by giving up any attempt to de­ tions, Adm. James Watkins, attacked the War Powers Act as fend ourselves." unconstitutional and called for its repeal. "This nation," the A few days earlier, in the final report of the Kissinger­ admiral told the Baltimore Council on Foreign Affairs, "must inspired Presidential Commission on Strategic Forces, Gen. be ready and must be seen as being ready to use military Brent Scowcroft, a business partner and co-factioneer of power when forced to do so by our adversaries. " Watkins put Kissinger's, had attacked engineering development of an his weight behind the Reagan beam-weapons initiative in ABM system as "risky" because Soviet leaders might consid­ meetings of the Joint Chiefs of Staff. er it a "breach" of the 1972 ABM Treaty. He warned the Secretary of State George Shultz, however reluctantly;

46 National EIR April 10, 1984 joined the battle against the appeasers . On March 28, Schultz Last spring, two independent teams of experts began to indicated before a congressional committee that a new Rea­ grapple with the President's vision of a world that would be gan administration just might let the SALT II Treaty expire free of ballistic missiles. We asked two central questions: Do Dec . 31, 1985-instead of dismantling Poseidon missile sub­ defensive technologies provide a real promise as a means of marines or Minuteman II missiles to adhere to the treaty's ending the threat of ballistic missiles? And, if se, would a limit of 1,200 ballistic missile launchers with multiple world in which such technologies were deployed be safer and warheads. more stable than the world we face today? After several Weinberger's press conference was in marked contrast to months of intensive effort which began with a good deal of statements of Defense Undersecretary for Research and En­ healthy skepticism, the scientificand policy experts conclud­ gineering Richard DeLauer and DARPA director Cooper be­ ed that the answer to both these questions was "yes," that fore Congress earlier in March. As the New York Times wrote defensive technologies do hold considerable promise for March 28, "Senior technology officialsin the Pentagon have eliminating the effectiveness of ballistic missiles and the told Congress there is not now any plan to develop or deploy achievement of this goal could significantly enhance deter­ a defensive system against missiles. Instead, they describe rence and world stability. . . . . the program as a 'technology demonstration' to make possi­ On the basis of the studies and the consultations with ble an 'informed decision' on developing such a program Congress and our allies, the President decided, as you know, sometime in the 1990s [emphasis added] ." Both these per­ to proceed with a Strategic Defense Initiative program whose sons asserted that a defense of cities was impossible. goal it would be to enable this nation to proceed to the devel­ opment and deployment of an effective defenseagainst bal­ 'I'd like to see it next year' listic missiles. Weinberger: "The objective is to destroy all missiles The Strategic Defense Initiative program which the Pres­ coming in ....I'm very impatient and I'd like to see it next ident submitted to Congress calls for a total of $2 billion in year .... We're going to proceed [with the program] as FY85 ....From the beginning, it was clear that the suc­ rapidly as we can ...we 're going to bend all of our very cessful completion of our program will require the coopera­ considerable efforts and talents and energy as a nation to do tion of many different organizations within government and it. It is as noble a goal as we could pursue ....The Soviets all the military services. To accomplish this, the President have been working on the whole concept for a very long time recently directed that the program be conducted by a central­ and I can't imagine a more dangerous world if they should ized management office, within DOD, under a strong pro­ get this system and be able then to hold the world in nuclear gram manager reporting directly to the Secretary of blackmail. " Defense .... The Secretary a�mounced that two presidential commis­ We looked for an individual who has not only earned a sions had examined whether building a complete defense was reputation as a space pioneer but is totally dedicated and feasible and whether or not such a defense would make the committed to find a way to use our knowledge of space to world "safer." "The answer to both these questions was protect mankind from the threat of nuclear weapons. 'Yes, ' " he reported. Weinberger then introduced General Abrahamson; ex­ Abrahamson told the press that "we have a nation that cerpts fo llow from the Secretary's remarks: can indeed produce miracles and can go forward ." Until April ...Th is is a great privilege to share in the President's 15, he will continue to serve as associate administrator of vision of the future . I think he's outlined a strategy of hope NASA, where he runs the Shuttle program. for all of us, and in my career as a technologist, I think it is very, very well founded. What I've seen in this country is that we have a nation that can indeed produce miracles that Defense Secretary bent on can go forward; if you see the shuttle fly,each time there is ending the missile threat ample, visible evidence of those miracles, and those are not the only ones. They are also in the weapons systems and in Thefo llowing are excerptsfr om Secretaryof Defense Caspar the people that are behind that technology. So I think, sir, Weinberger's March 27 press conference in which he an­ that we are ready to go about your task and the President's nounced the appointment of Lt. Gen. James A. Abrahamson task .... as Director of Strategic Defense. Weinberger made the fo llowing remarks in answer to questions from the press. Last Friday marked the first anniversary of the President's Ultimately, we want a thoroughly reliable system against speech to the nation in which he called for a national effort nuclear weapons, against ballisti� missiles, and against cruise to rid the world of the threat of nuclear-armed ballistic mis­ missiles. We have at this point had two major studies, both siles. In the year since he made his call, we've done a great of which have come in with favorable responses to the ques­ many things and made a substantial amount of progress. tions, can it be done, and should it be done, and we are going

EIR April 10, 1984 National 47 to proceed from that. ...We obviously are in the situation also realistic enough to know we can't do that. We're going we were before we went to the moon with that project. We're to proceed just as rapidly as we can, and it's hard to say in the situation that we were in before we had a shuttle flying because each year may open up new avenues which when with respect to that project. . . . The idea is to have a con­ pursued may lead us to a conclusion a lot more quickly than centration on a thoroughly reliable, effective defense against we thought we could do otherwise. Bear in mind that, in the these nuclear weapons. It is, I think, something that can be past, we have managed to do a lot of the things that people achieved and it's something on which we're going to spend said were either impossible or couldn't be done under any all of our very considerable efforts, talents, and energy as a circumstances, in a relatively short time. I don't have any nation to do .... timetable on it. We have, as you know, in the budget this What we're trying to do is exactly what we've described. year a substantial amount for,looking at a number of different It's to have a thoroughly reliable defense. It is to free the things that are required for the total system. We obviously world of the shadow that has hung over it since these weapons will push that just as hard as we can and next year we will were first introduced and it is, I think, as noble a goal as we know much more how to make up a budget for the second could pursue. I think it is the only one, really, that offers the year of itbecause we'll have some of the results then. genuine hope of the world of improving the situation that we In response to whether the administration is terming the have .... defensive weaponryprogram an "emergency program" : One of the reasons we have to do this is because the No, I don't think it's an emergency program in the sense Soviets have been doing it, have been working on it since that it's something that has a deadline that has to be completed 1967 , and they've made substantial progress. It's very im­ by December or anything of that kind, but it's a program of portant that we not have a situation in the world in which the very high priority. It's one of the highest priorities of the Soviets, with all their philosophy, and all of the military Administration and of this Department, and the President's might that they have amassed of an offensive nature, have directive is that it be managed in the way that he said; that is, this system first. If they had it first, then we would indeed be with a single manager to pull the whole program together, in an extremely perilous situation, so it is vital that we do all reporting directly to me. This is evidence of the importance that we can to develop and get this system. We can talk about that's attached to it. sharing it at a later time, but the goal is to have a situation in On whether it would be important fo r the program man­ which the threat of these weapons and the effectiveness of ager to be able to shiftfu nds from one technology program these weapons is removed. . . . to another, as development took place: Does the program make the modernization of existing ...It' s hard to do in the Congress, but it's not so hard to strategic fo rces and the fo llow-on fo rces that are planned do in this building, particularly when you have a presidential any less necessary, and do you see a time when such a directive of centralized management. ..Next year's budget program as the SDI would be a total replacement fo r offe n­ will probably look somewhat different than this year's be­ sive nuclear weapons? cause we will have a centralized place for it. But this year Clearly this will not have any effect on [the modernization we're reprogramming a lot of things that were designed to of existing strategic forces] . We have briefed all of our al­ support research and perhaps more of the terminal phase than lies ....Sh ould the system become totally effective, as we theboost phase, so to speak. hope it will, then we could decide at that time what to do Question: "When Drs. Ikle, DeLauer, and Cooper [sen­ about other weapons. ior Pentagon offi cials] testified on the Hill, they were asked In response to a question on whether the administration's whether they imagined this system could do away with the proposed programs violate the United States's 1972 ABM needfor an offensive retaliatoryca pacity. DeLauer said 'no' treaty with the Soviet Union: and the others didn't disagree ...." We don't face that at all because, at the moment, we're We're now starting ... to try our best to develop a talking about the research and the work necessary to tell us strategic defense initiative that is thoroughly effective and whether we can effectively and successfully deploy such a reliable. If we can do that, and I believe we can-I don't system. The ABM treaty goes to deployment. But the Soviets have any doubts about our ultimate ability to do that, if our have not been troubled by that in the work that they have commitment is strong enough-then we could face questions done on this type of strategic defense, and the treaty itself of the kind you've just raised. . . . provides that it should be reviewed and reexamined and either On whether the aim is to achieve a point defense orfu ller governmentsign atory to it is perfectly capable and perfectly protection: able to call attention to whatever necessary revisions events ...It 's an attempt to destroy incoming missiles. We may prove desirable. don't care what label is on the missiles, we don't care where In response to a question as to the timetable the admin­ they're targeted; we want to get them, preferably as they istration is operating on: come out of their silos, with non-nuclear means ....The I'm very impatient and I'd like to see it next year, but I'm objective is to destroy all missiles coming in.

48 National EIR April to, 1984 Question: "Would you be infavor of the development of a defensive system even ifit became apparent that it would not be Ioo% [effective] but its main purpose would be just to shiftto defense?" WANTED We aren't going to face that kind of prospect until we're told definitely and completely that you can't do it [have a 100% effective system] and I think we can .... Investment opportunity Question: "But do you think the effort is worthwhile alone, if you just shift the emphasis from offensive missiles to In data communication defensive?" technology I think the effort is worthwhile to develop a thoroughly reliable, effective defense. I've always thought so. I have Fiber optic mass communications never believed in the idea that somehow we enhanced our technology is one of the new high-speed security by giving up any attempt to defend ourselves. I've data communications methods available also always thought that it was far more effective and far for the 90's. more moral and noble, if you like, to try to destroy weapons rather than people. And that is why I would very much hope A new medium-sized redundant fiber optic we would have the support of the scientific and academic communication concept is available on a joint community as well as the total support of the Department of venture basis or under other suitable agreements. Defense which we now have. In response to a question on the alleged "tremendous APPLICATIONS cost" of the program: Offshore . . .I would suggest respectfully that you might want to Process control communication add up the cost of all the offensive weapons since 1945, and Military applications Nuclear power plant systems I would think that that cost would be slightly higher, perhaps Local Area Networks (LANs) in magnitudes of 100 times, whatever the cost would be to Critical alarm transmissions develop a system to protect people. I don't findthe cost of a system to protect people to be prohibitive. Question: "Senator Nunn was one of those who said that SYSTEM SIZE Up to 1,000 connections per real time unit that's a lot of money to pay fo r something you don't know whether is going to work or not." SYSTEM STATUS Well, we've put a lot of money into things we didn't Installations already in operation know would work or not. One of them was a venture to the References avai lable on request moon, one of them was a shuttle; and nothing ventured, nothing gained. I think that we owe it to ourselves, our SPECIAL fEATURE . children, and to mankind to pursue this with every bit of Radiation-ind uced error automatically rejected energy at our command. I think it offers the most hope to mankind and I can't believe that the cost of it is going to exceed, or even come close to, the cost we put into offensive INQUIRIES systems, and will have to put into offensive systems because {. In the u.s. we don't know if we can -get this. But we do have to do F.W. Engdahl everything we can to preserve the peace and protect our c/o Executive Intel ligence Review people. I, for one, have always felt that the idea that somehow 304 West 58th Street you were safer if you gave up all defense was not only absurd, New York, New York 10019 but dangerously absurd. Phone: (212) 247-8820 ext. 745 In response to whether the defensive program might "bump against the ABM treaty": In Europe MCS Comtech I don't know . It depends on how rapidly we progress; Strandvagen 7 how much success we have, how soon we are able to find S-1 91 45 Stockholm paths that offer the greatest promise. We think we have some Sweden idea of that now . . . . But as I say, the Soviets have been Telex: 14024 working on the whole concept for a very long time and I can't Phone: (468) 7510195 imagine a more dangerous world if they should get this sys­ tem and be able then to hold the world in nuclear blackmail.

EIR April 10, 1984 National 49 Why LaRouche Democrats are winning at the polls byWa rrenJ. Hamerman

Mid-March elections in three states-Florida, Illinois, and founded by LaRouche, has a current slate of over 100 can­ Massachusettes-showed impressive victories for Demo­ didates for Congress and 10 for U.S. Senate, as well as cratic Party positions on slates fielded by the National Dem­ hundreds of candidates for state and local offices. Hundreds ocratic Policy Committee (NDPC), the multi-candidate po­ of other LaRouche Democrats are running for party posts at litical action committee founded by Lyndon LaRouche. All the county, precinct, or ward level as well as for school the NDPC-backed winners were "citizen candidates"-men board, mayor, and other local offices. In the last months of and women who had never run for public office before, but 1983, 27 LaRouche Democrats were elected in the states of decided to rise to the occasion of the national-security crisis New York. California. New Jersey. New Hampshire. Loui­ facing the United States, and put forward LaRouche's pro­ siana, and Washington. gram for reversing that crisis. In Florida 44 of the 62 candidates on the NDPC slate The voting patterns were elected. In Illinois' DuPage County. 29 of the 31 La­ In Boston. Massachusetts 27 of the 90 National Demo­ Rouche Democrats on the ballot were elected; in nearby Will cratic Policy Committee (NDPC)-backed candidates for County, 15 of 20 LaRouche candidates won; LaRouche Dem­ Democratic ward committee were elected; the ward commit­ ocrats won 15 other victories in suburban Illinois for a total teemen are now party officials in 10 of the city's 22 wards in of 59 victories. Over 200,000 votes were cast for the NDPC the once uncontested stronghold of the Ted Kennedy-Tip slate in the Chicago area. In Boston. Massachusetts 27 of the O'Neill machine. In one ward, NDPC-backed candidates 90 candidates on the NDPC slate were elected. elected a slate of nine while in another, five Democratic The LaRouche victories in Florida, Illinois, and Massa­ committeemen were elected. In a third ward, two members chusetts occurredon two successive Tuesdays, March 13 and of the NDPC slate were elected on a crowded ballot of 45 March 20, when voters came to the polls to cast their votes candidates. in those states' Democratic presidential primaries. The vic­ During the election race, the state's Democratic governor tories were doubly significantbecause presidential candidate and AFL-CIO president Lane Kirkland's cronies at the head LaRouche himself was not on the ballot in those three states of the state trade-union apparatus as well as all of the principal as he prepared an "ambush" for his three remaining oppo­ media in the area had vowed to shut down the NDPC opera­ nents for the Democratic nomination-Mondale, Hart, and tion in the city. Instead, voters elected the NDPC slate to 27 Jackson-in the Pennsylvania primary on April 10. out of the approximately 350 ward committee posts in the In each of the states, Democratic voters otherwise cast city of Boston, ()r more than 7% of the Democratic Party their ballots massively against whoever had been designated seats in the city. the "frontrunner" by the media and anointed by the national In Florida. 44 of the 62 NDPC candidates filed were Democratic apparatus of the corrupt Democratic National elected to their County Democratic Executive Committees. Committee chairman Charles "Chuck" Manatt, and the elec­ Of the nine LaRouche Democrats who won in contested tion "experts." races, one candidate gained 73% of the vote and the next day By June, the NDPC anticipates that LaRouche Democrats received a telephone call from the startled county Democratic will control at least 5% of the elected Democratic Party po­ chairman, who demanded to know how he won the election; sitions in Los Angeles. California as well as large numbers the victorious new committeeman responded: "Watch La­ of Democratic precinct positions in Oregon. Overall, in 1984 Rouche on TV Saturday night and findout !" Three candidates elections so far, 1,863 LaRouche Democrats have officially elected to Democratic Committet- on the NDPC slate are filed or formally declared their candidacies in 29 states from AFL-CIO officials who refused to follow Lane Kirkland off coast to coast. The NDPC, the political action committee the edge of a political cliff. In Brevard County, which in-

50 National ElK April 10, 1984 cludes Cape Canaveral and the aerospace belt, the full slate Moscow" and "takedown-of-the-economy" policies of the of eight NDPC candidates for County Democratic Executive media and Democratic officialdom, they voted for the La­ Committee won seats. Rouche slate, becausethey know thatLaRouche is in a pitched In Illinois' DuPage County,29 of the 31 LaRouche Dem­ battle with Kissinger, Manatt, and Kirkland. ocrats in the race were elected Democratic county commit­ Millions of Americans have had their own opportunityto teemen, giving them control of 20% of the elected party watch Lyndon LaRouche himself describe his policies on committee seats in the county. In nearby Will County, 15 of television in half-hour TV broadcasts on Jan. 21 (CBS), Feb. the 20 LaRouche Democrats who entered the race won, giv­ 4 (ABC), March 17 (NBC), and March 26 (ABC). ing them 5% of the elected Democratic committee positions The political process underlying the rapid growth of the in that county. There were 15 other victories for Democratic controversial LaRouche movement was revealed in the Chi­ committeemen in other counties in suburban Chicago, for a cago media after the election results. The March 22 Chicago total of 59 victories and over 200,000 votes cast for La­ Sun-Times ran a prominent article entitled "LaRouchies Rouche Democrats in the area. In addition, the 10 LaRouche ScoreSwe ep in DuPage" which began: "Members of Lyndon Democrats who were running for Congress in the Chicago LaRouche's extremist political fringe group won all thirty­ area received nearly 100,000 votes despite massive fraud one DuPage County precinct committeeman posts they went t against them. after in Tuesday's election. " The article reported that acount­ In two-way congressional races, Jerry "Laser" Berg re­ er-operation had been launched to organize a write-in cam­ ceived over 38% of the vote in the 4th C.D., while Mark paign -against the LaRouche candidates but it failed misera­ Adams, the NDPC candidate in the 10th C.D., won 30%. In bly. The Sun-Times quoted County Democratic Chairman the 1st C.D. the widely known political leader Sheila Jones William A. Redmon, former speaker of the Illinois House, was credited with only 17% of the vote in a challenge to Rep. as saying: "I refuse to say it is necessarily all that bad. If they Charlie Hayes. This prompted one congressional colleague really want to be part of the party and help build the of Hayes to remark that in his state, politicians have a saying party.... " that when they die, they want to be buried in Cook County, On the same day the Chicago Tribune also carried a so they can stay active in politics forever-referring to the prominent story, "LaRouche Party Victories Chill DuPage quaint practice of the deceased continuing to show up as Democrats," which began: "Faced with the loss of 57 precinct voters. Other congressional candidates on the LaRouche slate committeeman posts, suburban Democratic Partyof ficialson had vote totals counted in the range of 12-24%, despite facing Wednesday were warily assessing the impact of primary vic­ millions of dollars' worth of slander articles and dirty tricks tories by supporters of ultra-rightist [sic] presidential candi­ run against their campaigns by the media, the Anti-Defama­ date Lyndon LaRouche." The article went on to note that tion League of the B 'nai B'rith, Chuck Manatt of the Dem­ while many of the victories were in uncontested races, a fu ll ocratic Party leadership, and Lane Kirkland. quarter came in precincts with ballot opposition.

Mutiny against Manatt Now it gets serious These election victories occurredin the midst of a politi­ In the April 10 Pennsylvania primary, a candidate slate cal hurricane in which the national and prominent local me­ of 115, headed by LaRouche, appears on the ballot. La­ dia, as well as the full force of Chuck "Captain Queeg" Rouche's name is the only one appearing next to those of the Manatt's officialparty apparatus, literally ordered citizens to much-detested media-approved candidates, Mondale, Hart, reject the LaRouche Democrat slates. and Jackson. Manatt, for example, has been traveling around the coun­ Beginning with the April 10 Pennsylvania primary, Lyn­ trystrong-arming party officialsto "deliver" a shutout of the don LaRouche has already been placed on the Democratic LaRouche citizens' candidate movement, as well as issuing presidential ballot in nine states; his campaign organizers are official memoranda and party orders from his Washington petitioning to put him on three more ballots, while he has Democratic National Committee headquarters to crush the court actions on behalf of ballot status in three other states. LaRouche movement. Manatt has become notorious for Traditional Democratic constituencies are in ferment, look­ opening his speeches around the country with the statement: ing for an opportunity to rebuild the Democratic Party along "Everyone is welcome here except representatives of Lyndon the lines of Franklin D. Roosevelt's 1939-43 policies of eco­ LaRouche." Kirkland has been deploying goons against nomic and military mobilization, and they know that Lyndon LaRouche-associated candidates and wildly ordering his LaRouche is dedicated to that p\lrpose. vaunted machine to destroy the NDPC-backed campaigns. The overall significance of the LaRouche Democrat elec­ NBC-TV and a network of prominent regional media such as tion victories in mid-March, combined with the voters' rejec­ the Chicago Tribune and Boston press have thrown caution tion of every approved "frontrunner" they are offered, is that to the winds with a hysterical slander campaign against in the midst of a great world crisis, the population insists that LaRouche and his movement. neithera Kissinger-controlled Reagan second term nor a Hartl However, since so many voters detest the "surrender-to- Mondale co-presidency is acceptable.

EIR April 10, 1984 National 51 Henry A. Kissinger: . Soviet agent of influence

The fo llowing is the text of a March 26, 1984 ABC-TVna­ For nearly 40 years, from 1946 until March 23, 1983, the tional television broadcast by Lyndon H. LaRouche, Jr., strategic and foreign policies of the United States were steered candidate fo r the presidential nomination of the Democratic by the influenceof the most evil man of the 20th century, the Party. late Bertrand Russell. This may seem unbelievable to those many of you who think of Russell as a leading pacifist. I am ANNOUNCER: At a three-day seminar in the nation's not exaggerating in the slightest degree. The documents are capital, on February 17, 18, and 19, 1982, the internationally many, and the evidence is beyond dispute. famous economist, Lyndon LaRouche, firstannounced to an We shall look briefly at Russell's policies, and then we audience of U.S.A. and foreign officials a new strategic shall learn how influential figures such as McGeorge Bundy doctrine which would be made famous 13 months later by and Henry Kissinger have dedicated their lives to imple­ President Ronald Reagan. menting Russell's not really very secret agreemen!s with the LaRouche proposed to scrap the strategic doctrine which Soviet dictators for nearly 30 years . had ruled the United States for more than 20 years, the doc­ The shaping of U. S. strategic doctrines and foreign pol­ trine known as Mutual and Assured Destruction. LaRouche icies covers two parts of the post-war period. The firstphase proposed a new strategic doctrine of strategic missile defense covers the period from about October 1946 until the end of based on high-powered lasers and particle-beam weapons the 1950s. Throughout that entire period, both the strategic and related technologies already in the engineering phase or doctrine and the foreign policy of the United States and its awaiting development in our scientific laboratories. allies were based on a policy which Russell published in the Perhaps only President Reagan knows who finally con­ October 1946 issue of the Bulletin of the Atomic Scientists. vinced him to announce this new strategic doctrine on March In that article, Russell made two points. 23, 1983. First, Russell insisted that the nl1tions, including the United One thing is certain. It was the combined forces of the States, must give up their national sovereignties. He de­ Soviet dictatorship, the Liberal Establishments, and Henry manded that a world-government agency, with a monopoly A. Kissinger who worked from immediately following the of possession and use of nuclear arsenals, be established. President's broadcast to attempt to discredit the President's Second, Russell proposed that if Russia refused to submit doctrine of Mutually Assured Survival. Those same forces to the agreement to establish such a world-governmentagen­ are attempting to eliminate this vital part of our national cy, that the United States and Britain must conduct "preven­ defense from the federal budget today. tive nuclear war" against Russia. This war should begin as Tonight, Democratic presidential candidate LaRouche soon as the Anglo-American nuclear arsenals were adequate tells you some of the reasons why Soviet agents of influence to destroy the Soviet non-nuclear forces, and should occur like Henry A. Kissinger are working to cut the development before the Russians began to develop nuclear arsenals of their of our only future defense against a Russian Empire's sneak own. missile attack out of the Federal budget today. This "preventive nuclear war" policy of Russell's was LAROUCHE: In another nationwide television broad­ adopted by the United States and Britain, and remained in cast earlier this year, and in several books and published effect until the middle to late 1950s. articles, I have explained why a crash program to develop a Russell began developing a second version of his strateg­ strategic ballistic-defense anti-missile system before 1988 is ic doctrine shortly after the death of Josef Stalin, at the point necessary to the physical survival of our nation. Tonight, I that the Russians were already building up an arsenal of shall report to you why Soviet agents of influence like Henry fission weapons and had constructed a prototype of an H­ A. Kissinger are working to sabotage President Reagan's bomb. Russell communicated messages to the new leaders in commitments to providing the world the only possible alter­ Moscow, offerring to cooperate with Moscow in setting up a native to thermonuclear war during the period immediately world-wide empire, of which the Easternpart would be ruled ahead of us. by the Russian Empire, and the Western part, some sort of

52 National EIR April 10, 1984 "Kissinger and his Liberal Establishment masters and accomplices have worked consistently fo r approximately 25 years, to aid the Soviet Empire's achievement of the 'New Yalta ' agreements worked out between Khrushchev and the circles of the evil Bertrand Russell. "

World-federalist dictatorship, ruled over by the wealthy fi­ Szilard himself. To most of you, Dr. Szilard's proposals will nancial families of such places as New York, Boston , Lon­ sound like outright treason. don, and Switzerland. The central feature of Russell's and Szilard's agreement In London, at a 1955 conference of Russell's World As­ with Nikita Khrushchev was the agreement to divide the sociatiqn of Parliamentarians for World Government, four entire world between two world-empires, the first to be ruled Soviet representatives attended, to signal Moscow's accept­ by the wealthy and powerful financial families of the so­ ance of Russell's new strategic agenda. By about 1957, Hen­ called Liberal Establishments of Britain and the United States; ry Kissinger's masters at the New York Council on Foreign the second part of the world-empire, the Russian Empire, Relations had accepted the Russell-Khrushchev package. In would be made much larger than Russia's division of the 1957, the book Nuclear Weapons and Foreign Policy was world negotiated during the war-time Yalta Conference. This published in Kissinger's name. The conclusive event oc­ is the so-called "New Yalta" agreement with Moscow, to curred a year later, in 1958, at the second Pugwash Confer­ which Henry Kissinger and his business partner, Britain's . ence, held in Quebec. At that conference, the details of the Lord Carrington, are dedicated today. agreement between Russell and Khrushchev were presented As Kissinger's article in the March 5 issue of Time mag­ ina keynote address by Russell's accomplice, Dr.Leo Szilard. azine indicates, Kissinger is committed not only to giving the McGeorge Bundy, Robert McNamara, Maxwell Taylor, Soviet Russian Empire the Middle East, but also to the effec­ and Bundy's nasty-tempered National Security Council con­ tive "Finlandization" of all of Scandinavia and Germany sultant, Henry Kissinger, among others, slipped Russell's under Soviet regional domination. This is part of a deal for agreements with Khrushchev into Kennedy administration which Kissinger and his friends have been working for ap­ policy. From that time until March 23, 1983, the strategic proximately 25 years, for which Kissinger is working today. policies which Russell had negotiated with Khrushchev were In order to establish long-term balance between the two the strategic doctrines of the United States and NATO. proposed empires, Szilard demanded that both superpowers Since the late 1950s, for more than 25 years, Henry develop thermonuclear arsenals large enough that each could Kissinger has been one of the leading Soviet moles working guarantee the nuclear destruction of the other in case of a inside the policy-making processes of our government, work­ general war between the two. This is the doctrine of Nuclear ing to help Moscow in keeping the United States in submis­ Deterrence, sometimes called Mutual and Assured Destruc­ sion to those Pugwash agreements. tion, or MAD. Szilard's 1958 keynote address at the Second Pugwash However, Szilard was no pacifist. He recommended that Conference was the basis for the famous film, Dr. Strange­ local wars, including limited nuclear wars, were indispen­ love, in which the character, Dr. Strangelove, is modeled on sable to "letting offsteam ." He proposed that a set of flexible

EIR April lO, 1984 National 53 guidelines be adopted, to pennit the powers to conduct lim­ efits aimed at by socialism can only be partially re­ ited colonial and other limited wars, but with secret under­ alized, and the less prolific races will have to defend standings adopted, to prevent local wars or limited nuclear themselves by methods which are disgusting even if wars from spilling over to become general thennonuclear they are necessary . wars . This doctrine, set forth by Szilard back in 1958, became known as Flexible Response. After the war, in 1951, the same satanic Russell wrote These doctrines agreed upon between Bertrand Russell's in a book named The Impact of Science On Society: crew and the Khruschev governmentin Moscow , were smug­ gled into the Kennedy administration by McGeorge Bundy, At present the population of the world is increasing Bundy's consultant Henry A. Kissinger, Robert S. Mc­ at about 58,000 per diem. War, so far, has had no Namara, and Maxwell Taylor. All of this was orchestrated great effect on this increase, which continued through behind the backs of our elected officials of government­ each of the world wars. . . . War . . . has hitherto excepting a few witting scoundrels. President Kennedy talked been disappointing in this respect. . . but perhaps bac­ to persons such as Gen. Douglas MacArthur, an opponent of teriological war may prove more effective. If a Black such doctrines; suddenly, President Kennedy was assas­ Death could spread through the world once in every sinated. generation, survivors could procreate freely without After President Kennedy ordered McGeorge Bundy to making the world too full. . . . The state of affairs fire Henry Kissinger, Kissinger pursued his career as partic­ might be somewhat unpleasant, but what of it? ipant in meetings of the Pugwash Conference back-channel to Moscow up to the point Kissinger was inserted as a mole The essence of Bertrand Russell's purpose, for the entire into the Nixon White House. In every known case, including extent of his satanic adult life, was the destruction of modem the SALT I, ABM treaty, and SALT II negotiations, Kissin­ civilization, and the creation of a miserable condition of ger's role under Presidents Nixon and Ford was that of a feudalistic society to be ruled by the Anglo-Saxon race. Soviet agent of influence, working against the vital strategic Russell intended this to be a fonn of utopia to be established interests of the United States, and in support of secret agree­ by massive genocide against the darker-skinned popUlations ments with Moscow reached through such back-channels as of the world, including such sections of humanity as those the Pugwash Conference, David Rockefeller's Dartmouth of Arab, Turkish, Greek, Italian, and Spanish ethnic origins. Conference, and the Aspen Institute. Russell's proposal of a scheme of world-governmentand Kissinger and his Liberal Establishment masters and ac­ his bacl}-channel "New Yalta" agreements with Moscow complices have worked consistently for approximately 25 were, for Russell, H.G. Wells, and their co-thinkers of the years , to aid the Soviet Empire's achievement of the "New Liberal Establishment, a way of bringing Russell's design Yalta" agreements worked out between Khrushchev and the for a feudalist Anglo-Saxon world-empire into being. Rus­ circles of the evil Bertrand Russell. That is the reason the sell found among the hardened racialists within the ruling world is near the brink of thennonuclearwar today. Through caste of the Russian Soviet dictatorship a partner who had the work of such people as McGeorge Bundy, Robert S. similar if conflicting goals to match Russell's own. Russell, McNamara, Averell Harriman, and Henry Kissinger, the and avowed feudalists such as Henry Kissinger, allied with Soviet Empire has been enabled to develop the strategic ca­ the Soviet dictatorship not because they like Russia, but pabilities to challenge directly the most vital interests of the because they hate what the United States represents. United States. But for the sabotage of the interests and na­ The most crucial point is this: to be able to sell the tional defense of the United States by aid of such influential doctrine of "post-industrial society" to the fellows in our circles, there would be no danger of actual thennonuclear Pentagon and Congress, Russell and his crowd had to con­ war today. vince those military and political leaders that a technolog­ I read you two brief excerpts from the writings of Ber­ ically progressive development of the agro-industrial base trand Russell. The first of these is a passage from a book of thenational economy was no longer strategicallyessential. Russell wrote back in 1923, entitled, The Prospects of Indus­ This selling-job was done by insisting that war-fighting trial Civilization. See if you recognize this policy as being would come to a halt at the time the thennonuclear inter­ that of an "ecologist" political faction of the United States continental barrages were completed. Therefore, the argu­ and Europe today: ment went, there is no need for military forces of the depth which might be used to continue war-fightingafter that stage The white population of the world will soon cease of the war. In other words, under conditions of general to increase. The Asiatic races will be longer, and the thennonuclear war between the two superpowers, there would negroes still longer, before their birth rate falls suf­ not be enough left alive afterthe opening salvoes to continue ficiently to make their numbers stable without help of war. Therefore, the argument goes, conventional military war and pestilence ....Until that happens, the ben- capabilities have no strategic significance for fighting a gen- .

54 National EIR April 10, 1984 eral war. Therefore, the spokesmen for turning the U.S. that in our country such practices are not tolerated. Yet, the economy into a post-industrial junk-heap �gued, techno­ Senator was convicted. An innocent U.S. Senator sent to logically progressive investment in agriculture and industry prison on the instruction of a Federal judge; he was convicted is no longer important for national defense. and sentenced on the grounds that he looked like a public Something more cruel , more criminal, was added: neo­ official who might take a bribe at some other time ! Malthusian programs of genocide against the populations of In the city of New York, for example, one of the best the so-called developing nations. It happens, that the chea­ ways to keep out of prison is to be arrested for murder, and pest and easiest way to commit genocide is by famine and one of the easiest ways to commit crime without fear of epidemic under slave-labor conditions-as the Nazis showed arrest is to peddle drugs openly at major intersections: The at Auschwitz. city's government has ordered the policy not to interfere Therefore, until the 196Os, even those among our mil­ with drug-peddling of this sort. However, commit no of­ itary-for example-who might share the Anglo-Saxon rac­ fense, but to be falsely charged by some FBI "frame-up," , ism of an Averell Harriman, would have defended the well­ or frame-up by the office of the District-Attorney of Man­ being of Latin American nations on elementary grounds of hattan, and you will almost certainly be railroaded tv prison U.S. logistical interests. With the introduction of Flexible while the murderer apprehended on the same date walks the Response, this changed. streets to kill again, virtually scot-free. Like the Nazi regime during World War II, the world's So, it must appear, that a judgment like that fallen upon most powerful international monetary and financial agencies the Biblical Sodom and Gomorrah looms above the flesh­ today have targetted between 120 and 150 million black pots of our morally sick nation. We can escape this threat­ Africans for death through genocide: death by famine and ened doom if we as a people awaken in time. We must epidemic. This mass-murder is the policy of influential in­ recognize where we made the wrong turn in morality and stitutions such as the Club of Rome, which claims that government policy-making during the post-war period. We regions such as black Africa are overpopulated and that the must reverse that error, and do it quickly; time is running world's population must be reduced by such methods. The out. evil policies of the Club of Rome are being implemented I also proposed this new strategic doctrine as a way of by powerful banking institutions of Switzerland, by the In­ destroying the rotten agreement which Bertrand Russell and ternational Monetary Fund, by the World Bank. These are others made with Moscow back during the 1950s, the rotten policies endorsed by high officials of our own Federal Re­ agreement which Henry Kissinger and others have been serve System. These are policies being put into effect in defending in their function as Soviet agents of influence. I many parts of the world by Henry A. Kissinger and his did this, for many reasons, but above all, to eradicate Rus­ friends. sell's and Kissinger's policies of Malthusian genocide, by This monstrous immorality practiced abroad comes home destroying the roots of Kissinger's feudalistic neo-colo­ to us today, in such forms as a growing movement for nialism in the Nuclear Deterrence doctrine. It is now ap­ genocide against our own nation's most vulnerable citizens: proximately 17 years since Easter 1967, the day back then the seriously ill and our senior citizens. The same crime for when Pope Paul VI issued his appeal for an end to the evil which we condemned Nazi doctors at the Nuremberg Trials, genocide being practiced by HenryKiss inger and the fellow­ the crime of euthanasia, is being promoted in the United travellers of the Club of Rome today. Although Pope Paul States and in Western Europe today under such titles as VI's Encyclical, Popu[orum Progressio, is a Catholic doc- . "Death With Dignity." This growing murder of our seriously trine, it expresses and reflectsthe very essence of the natural ill and senior citizens is being promoted by persons and law of Judeo-Christian western civilization. groups who argue that such systematic murder of tens of The essence of natural law is that every human life is thousands and more of our citizens is needed to keep down sacred, that the development of the creative-mental poten­ theaverage cost of health insurance premimums, or, to help tialities of each and all individuals is also the sacred duty balance the Social Security budgets. of society , and that also society must afford to each and all Senator Harrison Williams was no� murdered by the persons the opportunity to employ the developed potential­ Federal Bureau of Investigation, but his case is an example ities in some way which contributes good to p't'esent and of the same immorality in government we see more vividly future generations-that no man is compelled to go to his in the form of genocide against black Africa, and in the grave like a mere beast. This is the Law of Equity. That form of Nazi-like policies of euthanasia against our invalids, Law of Equity is an absolute, in the sense that no state and and against our senior citizens . no man can deny any individual anywhere his right to equity According to the evidence presented by the U.S. De­ so defined, unless that violation be to defend the very ex­ partment of Justice in Federal Court, Senator Williams not istence of those forms and institutions of society on which only refused anyoffer of a bribe, but was in the process of the fostering and protection of Equity for all persons depends. lecturing what he believed to be a Arab guest in our country Unfortunately, neither the Russian Empire nor feudalists

EUR April 10, 1984 National 55 such as Henry Kissinger and his accomplices accepts those doctrines of natural law. In his notorious doctoral disser­ tation at Harvard University , Kissinger pledged his future Book Review diplomatic career to follow in the example of the Holy Alliance's Prince Metternich. Kissinger pledged himself to the heritage of the Persian, Roman, Byzantine, Ottoman, Austro-Hungarian, and Russian empires. He rejects abso­ lutely the Judeo-Christian natural law of Western Civili­ The Mussolini world zation, and adheres to that evil misconception of man and the universe typified by the slave society of ancient Sparta of Gary Hart and the sodomy-ridden abomination that was the empire of Rome. In its own fashion, today's rulers of the Russian by Kathleen Klenetsky Empire also trace their philosophical heritage from Lycur­ gus's Sparta, and from the models of empire in which one master-race rules as overlord over subjugated races. A Different Kind of Presidency The injustice we tolerate against the peoples of black by Theodore C. Sorensen Africa, targetted by the genocidal financial and economic Harper & Row, 1984 policies of Kissinger and his feudalistic friends, is an act of 134 pages $11.95 injustice which savagely violates our own most fundamental moral values. The injustice which our government and major political parties tolerate throughout our nation, as they tol­ Starting in the 1970s, presidential election years have pro­ erate the FBI's Gestapo-like frame-up against an innocent voked criticisms of the American system of governmentand U.S. senator, and tolerate murder and drug-pushing in cities provided a platform for discussions of proposals to reform it. like New York, are but an echo of the fact that it is our Nineteen eighty-four is no exception. morality itself which has been shattered by tolerating Henry Ted Sorensen, special counsel to President John F. Ken­ Kissinger and his accomplices in foreign policy. nedy and a prominent figure in liberal Democratic politics, Let us go back to being a great industrial power, an has published a scheme for transforming the U. S. govern­ agroindustrial power flourishing in scientific and techno­ ment which should be read by anyone who wants to know logical progress. Let us be again, what was said of us at what lurks behind Gary Hart's blow-dried hairdo. Sorensen the establishment of our independence from the feudalist signed on with the "new ideas" candidate at approximately policies of Britain: a "temple of liberty" and "beacon of the same time his book came out, and it bears a marked hope" for all mankind. Let us be again the defender of the resemblance to Hart's presidential platform. smaller, weaker nations of the world, against colonialism Sorensen argues in his A Different Kind of Presidency: A and imperialism in all their manifestations. Let us build Proposalfor Breaking the Political Deadlock that the United among sovereign nation states a community of principle States is caught in unprecedented political and economic according to natural law, as Pope Paul VI's Populorum crises which can only be resolved by "bold new initiatives" Progressio beseeched us to do. and "painful measures." Because these measures-ranging Let the President of the United States be a person who from a unilateral nuclear weapons freeze to economic auster­ knows that his or her most essential duty is that of the chief ity-will be so "vastly unpopular" with the American people, magistrate of a great republic. Let the frightened and op­ the government which comes to power through the 1984 pressed in our own and other nations around the earth look elections must be a virtual dictatorship. up with just hope from their injured circumstances, and say Sorensen doesn't use the word dictatorship, of course. to themselves: "This is an injustice which the President of He talks instead about "national unity" and "coalition gov­ the United States would not tolerate, if he knew of it." Let ernment." "The time has arrived in this country,"he writes, that opinion be justified. "for a temporary, bipartisan, 'grand coalition' of national Let us, therefore , proceed to expend the needed $200 unity" that would "go beyond anything previously attempted billions estimated as required to emplace a first-generation or seriously considered in the United States" and "could ballistic-missile defense for this nation by the year 1988. change the destiny of the country itself." That will be not only a physical defense of our republic, This particular "new idea" was aired by the Establish­ but will represent an act by aid of which we return to the ment's top Washington lawyer, Clark Clifford, back during principles on which this republic was founded. the W.atergate era of 1973-74. In fact, the "national unity" Let us move Henry A. Kissinger, and what he represents, dictatorship was the purpose behind the Watergate operation for once and forever, out of the policy-making processes of to discredit, not just Richard Nixon, but the presidency itself. government. Later, in 1980, Jimmy Carter's WhiteHouse lawyer Lloyd

56 National EIR April 10, 1984 Cutler took to the pages of the Council on Foreign Relations' new structure simply excludes the voters. Sorensen stipulates journal, Foreign Affairs, to demand that the United States that the Coalition Government will be based on "shared re­ adopt the British parliamentary system, because the era of sponsibility." The President would be drawn from one party, economic growth was finished, and "political triage" now his Vice-President from the other. So that they are not swayed necessary could not be achieved under the U . S. Constitution. by accountability to the population, Sorensen specifies that Cutler's proposal was seconded by "conservative" former both would have to foreswear a second term in office. Treasury Secretary William Simon and "liberal" former Sen. In addition, Sorensen proposes that the parties share cab­ William Fulbright. inet and sub-cabinet positions on a 50-50 basis, and that Sorensen's idea of "national unity" is that the United appointments to all other major posts-;--including Federal States relinquish its sovereignty and submit itself to a one­ Reserve chairman and Joint Chiefs of Staff chairman-be world dictatorship. As a model for the new system, he spe­ agreed upon by the two parties. cifically invokes the way Third World countries are forced The crux of Sorensen's blueprint is the establishment of by the International Monetary Fund (IMF) to destroy their two new bodies, a "National Council of Economic Cooper­ economies. "Many governments borrowing from the IMF, ation and Coordination" and a "Council of Elders." They including Britain and Italy as well as scores of developing would effectively dictate U.S. government policy in the cru­ nations, have as a condition for those loans accepted tempo­ cial areas of economic and military-strategic affairs . Both rary restrictions, some of them vastly unpopular, on their would be instituted by a presidential Executive Order, and economic conduct. The United States ...should similarly both would be composed of appointed, not elected, individ­ be able to accept some self-discipline for the common good. " uals, including former secretaries of state, businessmen, and so forth . Brave new world What Sorensen proposes, in effect, is to take such "un­ Although Hart has not publicly endorsed his campaign biased, bipartisan" groupings as the Trilateral Commission manager's book, there is no question that many of his "new and the New York Council on Foreign Relations, through ideas" cohere with what Sorensen proposes. The themes of which the Establishment families now mobilize to impose Sorensen's book-the need for "economic sacrifices," "pain­ their will on government, and bring them directly into the ful choices," an end to "special interests"-are indistinguish­ governmentitself. able from Hart's campaign-trail slogans. The book makes it clear that the Council of Economic Sorensen calls for a wage controls-incomes policy and Cooperation would be the key economic policymaking body import fees; these also form basic components of Hart'splat­ in the Coalition Government. According to Sorensen, its form . Among Hart's more radical proposals are plans for a most urgent task would be to make "deep reductions" in the $1O-per-barrel fee on imported oil, taxing consumption, loot­ federal budget deficit by raising taxes and cutting expendi­ ing employee pension funds, and eliminating 45 million jobs tures. "No one's sacred cow or traditional pork barrelwill be in U. S. basic industry over the next 15 years. safe." The Council will have to "face the painful task of It's difficult to imagine that the American population strengthening the tax base and reducing the federal tax de­ would accept this voluntarily under normal political condi­ ductions and spending programs benefiting every group rep­ tions. That's where Sorensen's "national unity" dictatorship resented around the table." comes in. Sorensen strenuously maintains that his proposal lies Appeasement . within the framework of the Constitution; in reality, it stands Sorensen zeroes in on U. S. defense as a key area in which completely at odds with the intentions of the Founding Fath­ the Coalition Governmentcould take "bold new initiatives" ers, who craftedthe American system of government specif­ without having to worry about the American electorate . For­ ically to encourage sustained economic and technological get the constitutional way to make foreign policy; instead, development. after discussions with Congress and "quiet and informal talks Sorensen's scheme, on the oth�r hand, has been designed between thetwo superpowers ," the Coalition President should to dismantle the U.S. economy. As he candidly notes, no declare a four-year freeze on the production, testing, and political party or branch of government alone wants to be deployment of all strategic nuclear weapons, including the held responsible "for cutting expansion of or eligibility for MX missile and the B-1 bomber, the production of pluton­ the middle-class entitlement programs like Social Security ium, and the testing of anti-satellite and other space weapons. and Medicare, or the funds for repairing our crumbling infra­ This blueprint for unilateral disarmament, claims Soren­ structure, or the pay or pensions of those who serve in our sen-who was forced to withdraw as Jimmy Carter's first armed forces" or any of the other austerity schemes which choice to head the CIA because he had managed to wangle Sorensen suggests, ranging from a wage freeze to higher out of military service during the Korean War-isexa ctly the taxes. kind of "good-will gesture" the United States must make in To deal with this inconvenience, Sorensen's proposed order to usher in a new era of relations with the Soviet Union.

EIR April 10, 1 9,,84 National 57 Elephants and Donkeys by Kathleen Klenetsky

campaign, and earlier this year ques­ used to be Hartpence, until he dropped tioned the value of spending thou­ his pence." sands of dollars to educate mentally "The other sticker is much more retarded children "when after four or potentially harmful. It says simply: five years all they do is roll over." 'KGB Approved. ' Now it is doubtful that presidential candidates Walter F. Moscow praises Hart­ Mondale, Jesse Jackson, or Ronald Reagan would accuse Hart of being trouble on homefront supported by the Soviet secret police. Ever since Gary Hart trounced Fritz Then who would? Come on, you Is killing elderly a Mondale in New Hampshire, the So­ know. All right then, let's take a shot in the dark and call Lyndon La­ 'new idea' of Hart's? viet press has been singing the praises of the blow-dried wonder from Colo­ Rouche's Philadelphia campaign Colorado Gov. Richard ammL , a long­ rado. Pravda, Izvestia, and Literatur­ headquarters and ask. . . . .time friendof Hart who endorsed him naya Gazeta have all run stories ap­ "When asked about the sabotage early in the presidential race, told a plauding Hart for his nuclear-freeze of Hart posters, Suzanne Rose, a meeting of the Colorado Health Law­ support and his opposition to the MX, spokeswoman for LaRouche's Phila­ yers Association March 27 that ter­ B-1, and the U. S. military presence in delphia campaign headquarters, said minally ill old people have a "duty to Central America and Lebanon. yesterday, 'I· don't know what our die and get out of the way." Now the organ of the ultra-Rus­ supporters are doing, although he Likening senior citizens who re­ sian-chauvinistic faction in the Soviet [Hart] certainly is KGB-approved.' ject machines and other advanced Union has jumped on the Hart band­ Ms. Rose cited an article in the official medical technologies as a means of wagon. The March 28 edition of So­ Soviet newspaper Izvestia on March staying alive to "leaves falling off a vietskaya Rossiya carried a panegyric 11, which she said described Hart in a tree and forming humus for the other to Hart which, under the heading "The favorable manner." plants to grow up,'" Lamm said: Words and Political Credo of Gary "You've got a duty to die and get out Hart," announced that"Without doubt. 'Gays' and disco Dems of the way. Let the other society, our . Hart'sviews on the questions of nu- kids, build a reasonable life." clear disarmament and improving So­ Fritz may be suffering a temporary Despite a massive public outcry, viet-American relations arouse inter­ ratings slippage at the Kremlin, but his Lamm has refused to retract his re­ est and sympathy." (Fritz Mondale is popUlarity is zooming with at least one marks. At a press conference in Den­ referred to rather cavalierly as a "for­ group. On March 28, his New York ver March 29, Lamm told a pro-life mer senior member of the discredited City headquarters hosted a press con­ group which had called on him to re­ Carter administration.") ference by "Gays and Lesbians for pudiate his stand that they were "con­ Though Sovietskaya Rossiya didn't Mondale," at which such self-styled temptible" and a "tiny minority" of the mention it, Hart's favorite author is "openly gay activists" as Allen Ros­ American population. Fyodor Dostoevesky, the 19th-centu­ koff, president of the New York chap­ Although Hart claimed to report­ ry Russian author whose "Mother ter of Americans for Democratic Ac­ ers that he "totally disagrees" with Russia" fanaticism is the newspaper's tion, and Kenneth Sherrill, a professor Lamm's position, he advocates a se­ governingphiloso phy. and Democratic district leader, an­ ries of cost-cutting measures, includ­ Moscow's motherly embrace is nounced their backing for Mondale's ing expanding Health Maintenance causing Hart some problems at home. candidacy. Organizations, and substituting para­ We reprint here a piece that appeared "Mondale doesn't just offer lip professionals for physicians, which in the March 26 Philadelphia Inquir­ service to gay civil liberties," said would undermine the quality and er. Under the headline "GaryHart Gets Sherrill with a fine tum of phrase. availablity of U.S. health care. In ad­ Lyndon LaRouche'd," the Inquirer "He's shown intense executive lead­ dition, Hart boasts that he sponsored reports: "Some Gary Hart campaign ership and a passionate commitment legislation to enable hospices to re­ posters around the city have had anti­ to our rights ....When we needed a ceive Medicare funds. Hartcampaign stickers pasted to them. notable person to legitimize our activ­ Lamm , a former national presi­ One of the stickers, about three inches ities and attract national media atten­ dent of Zero Population Growth, en­ square and placed in the lower left­ tion to what we're doing, Walter dorsed . the cannibalism of Alfred hand comer of the Hart poster, is al­ Mondale came forward . He was with Packer during his 1982 re-election most humorous ..It says, "His name us in the trenches."

58 National EIR April 10, 1984 Kissinger Watch by M. T. Upharsin

ger gives AIDS to boys.' Get propane keep half a million Americans, their or something and get them off fast !" familiesincluded, in Europein the long run. I say this as an old Atlanticist." Criticizing NATO's strategy of 'Excess of rhetoric' using nuclear weapons at an early in election campaign? phase of a war, Kissinger said: "As long as NATO thinks of an early use Too much debate on foreign policy is of atomic weapons, our troops are , in Will Henry decide to sue a dangerous thing in an election year, their present strength, misplaced. said Henry in a statement issued two Lyndon LaRouche? What's the sense of keeping five di­ days after Lyndon LaRouche accused visions there? These are questions "Dr. Kissinger," the reporter began, him on national television of disarm­ many more Americans than now will "two nights ago Democratic presiden­ ing the United States at the behest of certainly ask themselves in the com­ tial candidate LaRouche appeared on the Soviet Union and the Pugwash ing period." nationwide TV and stated that you are Conference One W orldists. . In a March 5 essay in Time, Kis­ a Soviet agent of influence. Do you The statement, drafted by the As­ intend to sue Mr. LaRouche, and what singer had dismissed the possibility of pen Institute's Douglass Cater follow­ will be your response to his charges?" war in Europe as "hypothetical and ing discussions with Henry in Austin, Kissinger dropped that air of pro­ esoteric," and called for aU. S. troop Texas, was also signed by Gerald Ford, fessorial arrogance with which he usu­ pullout and a transfer of the top com­ Jimmy Carter, Dean Rusk, William P. ally fends off critics. Face rigid, hands mand of NATO to European control. Rogers, Cyrus Vance, Edmund Mu­ gripping the podium, he stared at the The article created an uproar in West­ skie, and Alexander Haig. ernEurope . Asked about this criticism reporter with a burning, murderous "We are entering the season of po­ by Stern's reporter, Kissinger replied: glare, and spoke with an emotional litical contest when the contestants of intensity which shocked the assem­ "Some years from now everyone will both parties aresorely temptedto make bled press corps: see that I was right ....Have you utterances and urge actions which "Oh, Lyndon LaRouche, I treat heard any negative word from Presi­ could do harm to America's standing him with contempt. He used to be dent �eagan?" in the world," the statement says. called Lyn Marcus, now Lyndon "While mindful that robust argument LaRouche. That's a contraction of has always accompanied the choosing Trilateral Commission 'Leninist' and 'Marxist' ....I do not of the U. S. President, we caution that meets in Washington feel I have to respond. These charges excess of rhetoric can have lasting im­ are vile. LaRouche and his organiza­ pact on the conduct of foreign policy, The Trilateral Commission opened a tion are beneath contempt. . . . I will 1 causing risk for this nation which has three-day plenary session April in decide on what I wish do do with him been called to play the role of leader Washington, presided over by Kissin­ after the primaries. Then I will take in the thermonuclear age. We urge ger's piggy-bank, David Rockefeller. the appropriate action. These people candidates of both parties to recognize Topics on the agenda at press time are contemptuous [sic]. It is a con­ that we must work together for a for­ include: "Scientific, Commercial and temptuous organization!" eign policy that best serves our nation­ Military Uses of Space: Current Issues . When Kissinger finished, there al interest." and Future Challenges," "Central was dead silence in the room, the re­ Our national interest, Dr. Kissin­ America," and "Democracy Must porters amazed at Kissinger's un­ ger, or that of the U.S.S.R.? Work: A Trilateral Agenda for the wonted outburst. The press confer­ Decade." ence broke up soon afterward. Among those scheduled to address Dr. K. was speaking in San Jose u.s. military 'fixated' the meeting were Secretary of State at a convention of the CaliforniaDen­ George Shultz, International Mone­ on Western Europe tal Association. The premises were tary Fund Managing Director Jacques mysteriously plastered with dozens of Kissinger has reiterated his demand de Larosiere, Mexican Finance Min­ stickers bearing such slogans as "Kis­ for aU. S. militarypullout from West­ ister Jesus Silva Herzog, former U.S. singer Never Again. A distraught em Europe, in an interview with West National Security Adviser Zbigniew manager was overheard on the tele­ Germany's Stern magazine dated Brzezinski, the chairman of Britain's phone: "We've got trouble! The whole March 28. "Our military is much too Social Democratic Party, David area, all the doors, have stickers on fixated on Europe," he said. "Without Owen, and former Japanese Foreign them that read something like 'Kissin- any military purpose [sic], you cannot Minister Saburo Okita.

EIR April 10, 1984 National 59 congressional Closeup by Ronald Kokinda and Susan Kokinda

Stratton: House is like 1936 ties, was chaired by Sen. Jim McClure the arms-control establishment to the British appeasers (R-Idaho) who has led the Senate ef­ British pacifists of the 1930s who had A leading advocate of a strong U.S. fort to bring Soviet violations to light, allowed Hitler to rearm Germany defense, Rep. Sam Stratton (D-N.Y.), rather than by its budget-cutting chair­ unimpeded. told an American Defense Prepared­ man, Ted Stevens (R-Alaska). McClure reported during the hear­ ness Association luncheon in Wash­ At the very end of the hearing, ing that he and five other senators had ington on March 29 that the top target McClure asked retired Adm. Elmo sent a letter to Defense Secretary of the anti-defense crowd in the Con­ Zumwalt, "It is my understanding that Weinberger on March 1 asking him to gress is the MX missile. They are there was a secret Kissinger-Brezhnev follow up on the administration's So­ trying to "outdo even the British House agreement added to the SALT I treaty, viet treaty violations report with an of Commons in 1936" in their race for which gave away the U . S. right to de­ analysis of the military implications of appeasement, Stratton said. ploy three additional submarines and those violations. Stratton outlined the Soviet mili­ a number of Titan II ICBMs. Could tary edge over the United States in you elaborate on that?" Zumwalt re­ conventional, theatre, and strategic plied, "That is true. And for the record areas and noted that "all congressmen I want to say that that information was entors to make are cleared to get that type of infor­ withheld from the Joint Chiefs of Staff S mation. But few of them seem to both­ until after we had testifiedon Capitol World Bank even worse? er. If Americans saw the charts, their Hill in favor of the treaty ." McClure An effort by the international environ­ hair would curl. The Soviets are not went on, "Is it not also the case that mental lobby to impose further anti­ only ahead of us in numbers but in the United States is now going even development constraints on the Mal­ performance as well. We must speak further unilaterallyand dismantling 54 thusian policies of the World Bank has out frankly." Titan lIs, 160 Polaris SLBMs and 32 begun to gain momentum. Represen­ Stratton criticized the Business Posiedon SLBMs, and that this unilat­ tatives of the Natural Resources De­ Council and the Grace Commission eral action along with those conceded fense Council (NRDC), the National for their attacks on defense spending, in the Kissinger agreement has signif­ Wildlife Federation, the Sierra Club, and warnedthat an increased U . S. de­ icantly reduced the U.S. deterrence?" Friends ofthe Earth, the Izaak Walton fense effort was crucial to prevent the Zumwalt answered simply, "Yes." League, the National Audubon Soci­ "separation" of Europe from theUnited In powerful testimony preceding ety, and the Environmental Defense States, noting that "even Margaret this exchange, Zumwalt had detailed Fund testifiedbefore the Foreign Op­ Thatcher and Helmut Kohl" are urg­ not only the extent of Soviet treaty erations Subcommittee of the Senate ing arms control concessions on us be­ violations, but also their military im­ Appropriations Committee on March cause they "realize the Soviets' real plications. Zumwalt stated bluntly that 20 and urged that "environmental con­ military edge." the Soviets now have a first strike ca­ siderations" and "protection of indig­ pability, that they are 10 years ahead enous peoples" be taken into account of the U.S. in both offensive and de­ by the World Bank when providing

fensive capabilities, and that "The So­ loans for development projects in the . viets may, in just another year's time, Third World. Congress must vote soon Kissinger scored before be able to defend over one-third of on renewing the U.S. contribution to Senate subcommittee both their population and offensive the World Bank. Henry Kissinger's role in sabotaging forces from the U.S. retaliatory deter­ Environmental groups argued that U.S. strategic deterrence became a rent!" Zumwalt urged the administra­ large, capital-intensive development point of open discussion in the Senate tion to respond to the treaty violations projects are damaging to the environ­ Defense Appropriations subcommit­ in an escalating fashion leading up to ment and disruptive of local (back­ tee on March 28. The subcommittee, abrogation. Throughout the hearing, ward) cultures. While the World Bank hearing witnesses on the topic of So­ Zumwalt, McClure and Pentagon has never been known to press such a viet violations of arms control trea- spokesman Richard Perle compared development approach, what little ac-

60 National EIR April lO, 1984 tivity it does carry out of a capital­ back channel such as the the Union of Wheat target prices are cut 37¢ a intensive or semi-capital intensive Concerned Scientists, Physicians for bushel over 1984 and 1985 as com­ character is too much for the Social Responsibility, the Committee pared with current law; com target environmentalists. for National Security, and the Institute prices will be frozen for 1984 and then International Policy Subcommit­ for Security and Cooperation in Outer drop 15¢ below currentlaw . Rice drops tee chairman Charles Mathias (R­ Space. 50¢ in taget price for 1985. The sec­ Md.), a leading supporter of the gen­ In a press conference on March retary of agriculture is also provided ocidal policies of the Global 2000 Re­ 28, Brown said: "The public is being with discretionary powers to impose portand the Global Tomorrow Coali­ presented with the dangerous illusion further production acreage reductions tion, is said to be amenable to includ­ that the escalation of the armsrace into from 5-25% if carryover supplies reach ing language in the committee report space can solve our problems here on specifiedleve ls. . mandatingthe World Bank to take such earth. However, a careful analysis of Senator John Melcher (D-MonL), steps, but is cautious about an actual Star Wars technologies reveals that said the fact that the "wheat producers floor amendment to the legislation. these .exotic space weapons . . . will of this country are getting a triple That is likely to be very controversial, decrease our national security." The whammy" including not only the 1984 and Mathias appears to be anxious to coalition will pursue a U.S.-U.S.R.R. and 1985 reductions but also a USDA­ prevent the bill from being encum­ test moratorium on anti-satellite imposed cut in their loan rates of 35¢ bered by different amendments. weapons, and a funding ceiling for the perbushel . Sen. EdZorinsky (D-Neb.) Subcommittee chairman Bob President's Strategic Defense Initia­ complained bitterly that farms had Kasten (R-Wisc.), an alleged conser­ tive for beam weapons. planned, and bankers had lent, on the vative Republican, told the witnesses Brown's legislation is being co­ basis of the 1981 farm bill. Zorinsky that their concerns were justified and sponsored by 57 other congressmen. pointed out that the saving to the fed­ that they should work with his staff to Brown charged that "this administra­ eral budget amount to "less than $1 come up with appropriate remedies. tion is threatening the only strategic billion a year. " arms treaty ratified between the United Testifying on March 28 before the States and the Soviet Union with its Agriculture Subcommittee of the • Star Wars' fantasy. . . . Most dis­ House Appropriations Committee, the KGB kooks demand halt turbing about the President's Star Wars National Democratic Policy Commit­ to beam weapons proposal is the certainty that testing tee slammed U. S. farm policy. The Delivering on his promise to make and deployment of ballistic missile NDPC spokesman said, "The United outer space safe for intercontinental defense technologies would violate the States is in a depression, the agricul­ ballistic missiles, a promise delivered 1972 Anti-Ballistic Missile Treaty." ture sector is in a depression, and we've in a speech on the House floor on The ABM treaty does not cover weap­ got a global foodshortage on our hands March 21, Rep. George Brown (D­ ons based on "new physical that is going to mean food shortages Calif.) announced the formation of a principles. " in this nation next year unless we un­ Coalition for the Peaceful Uses of dertake a defense and economic mo­ Space on March28 and simultaneous­ bilization like we did from 1939 to ly introduced legislation demanding 1943." Appropriations Committee that the United States adhere to Henry Senate bill targets farms chairman Jamie Whitten (D-Miss.) Kissinger's Anti-Ballistic Missile for further destruction told the NOPe, "I agree with you every Treaty . Brown's Coalition includes The Senate passed legislation making time you come up here . . . but we Sen. Paul Tsongas (D-Mass.) and 12 changes in the 1981 farm bill on March appropriate the money to help farms fellow congressmen. The Coalition 22 by a vote of 78 to 10 which slashes and the administration won't spend also includes the Soviet front group, target prices for various farm com­ it ....We gave the secretary of ag­ the Women's Strike for Peace, and a modities. The cuts come as it is esti­ riculture the power to stop foreclo­ variety of "scientific"groups spawned mated that farm income could drop by sures and he won't use it. I don't know by the Soviet's Pug wash Conference 25% over 1983. what else we cando ."

EIR April 10, 1984 National 61 National News

against his receiving protection. This dele­ sioner David Axelrod to issue orders requir­ gates law enforcement powers to the legis­ ing permanent written systems . lative branch of government, LaRouche's Senator Wallop: Soviets attorneys contend, a violation of the sepa­ ration of powers doctrine of the U.S. to get space laser soon Constitution. Senator Malcolm Wallop (R-Wyo.) told a Prior to the hearing , Secretary Regan is Senator Hatch wants to meeting of the American Defense Prepar­ being required by the court to respond to a edness Association in Washington March set of pre-trial discovery requests, including ease up on MBFR talks 29 that the Soviet Union will deploy "some written interrogatories and requests for pro­ Self-styled hard-line conservative Sen. Or­ kind of space-based laser soon" and that it duction of documents. The discovery seeks rin Hatch (R-Utah) has written a letter to "won't have to be very good to make a sig­ to probe the decision-making process be­ Secretary of State George Shultz arguing nificant contribution to the Soviet strategic hind the decision to provide protection to that President Reagan should "let the Sovi­ position .... Our best guess is between the other eight candidates, as well as the ets off the hook" in the dispute over troop 1985 to 1987 ," he said. discussions behind the decision to deny pro­ strength in Europe. Wallop emphasized that the United States tectionto LaRouche. The interrogatories also The dispute, which involves U.S. must accelerate its own Strategic Defense seek to discover any meetings or discussions charges that the Warsaw Pact has 160,000 Initiative (SOl). "The spectre of retaliation between Regan and Henry Kissinger, and more troops in Eastern Europe than it con­ is worth less and less to us . Where will we between Regan and his associates and re­ cedes, is a key feature of the ongoing MBFR be 10 years from now? If we want to main­ porters for NBC television. (Mutual and Balanced Force Reduction) talks tain our security , we must change our strat­ on conventional capabilities in Vienna. egy now ." Hatch'is calling for the United States to stop Wallop had harsh words for Pentagon focusing on this issue so that the talks can and administration footdragging, saying that proceed. the program so far might be better called the 'No-code' death lists Hatch wrote in his letter: "We have to "laboratories full employment act of 1984." choose between on-site inspections [and) He stressed the need to deploy systems as in New York hospitals forcing Moscow to admit it was lying. Or­ they are developed rather than waiting for New York City hospitals, including the re­ dinarily I am all for exposing Soviet decep­ something perfect. nowned Sloan Kettering cancer research tion . . . but Moscow is hardly likely to Dismissing objections to the program hospital , have established coding systems to agree to do that and the cost to us is to lose from arms-control advocates, Wallop said determine which cancer patients should be the on-site inspection." Hatch also accused that there were "two communiques to the resuscitated and how much medical help they the administration of making a mistake by United Nations, one from Brezhnev and one should be given. An investigation of this "tightening up" demands for verification of from Andropov, saying that no such [ABM) practice is currently under way by State any troop withdrawals. treaty restrictions exist. " Prosecutor Kuriansky, and evidence was presented at a grand jury hearing in March. At Sloan Kettering, patients are divided into categories A, B, C, and D-where C and D get no intensive care treatment. The NASA's agenda for Court to hear LaRouche categories are noted on a blackboard in the physicians' lounge. The hospital 's physi­ Mars and the Moon Secret Service case cian-in-charge, Dr. Fahey, said that he did NASA administrator James Beggs an­ An April 2 hearing has been set in the federal not see the need for a more permanentrecord. nounced at the end of March that the United lawsuit brought by Democratic contender One Queens hospital designates those States could establish a colony on the Moon Lyndon H. LaRouche, Jr. against U.S. patients which are to receive no help should about the year 2010 and a colony on Mars Treasury Secretary Donald Regan demand­ they go into cardiac arrest by adding a purple before 2060, using Space Shuttle and space ing Secret Service protection. The hearing dot to their records, which are then removed station technology and infrastructure. Beggs will concern LaRouche's motion for a pre­ once the patient dies. was speaking at the U.S. Naval Academy. liminary injunction directing Regan to pro­ Both hospitals denied that the non-per­ After the first U.S. permanent manned vide the same protection for LaRouche that manent records are destroyed to save the space station is in operation in the early has been provided for other maj or presiden­ hospital and physicians from malpractice 199Os, Beggs said, a station could be placed tial candidates. suits. in geosynchronous orbit-three-quarters of The LaRouche suit will also challenge State Prosecutor Kuriansky demanded the way, in fuel terms , to the Moon. A the constitutionality of the congressional ad­ an immediate abolition of all secret death manned lunar orbital space station could be visory committee which recommended lists and called upon State Health Commis- in place by the tum of the century, with a

62 National EIR April 10, 1984 Briefly

• TIlE FEDERAL Election Com­ mission, in an extremely raucus meeting March 28, voted 5--Q to pro­ small lunar surface colony established by an early experiment in the means by which vide matching funds to Democratic the year 20 10. modern terrorism and insurrections are de­ presidential candidate Lyndon H. By 2020 or 2030, a fully operational liberately constructed; LaRouche , Jr. , once certain obliga­ research station, with the use of robots , • the design of three modern "reform" tions from LaRouche's 1980 cam­ would be in place on the Moon, and a small­ movements by British and Swiss racialists paign were satisfied. The LaRouche er station on Mars . By 2060 a "healthy and and feudalists: fascism, communism, and Campaign argues in a petitionbefore growing" Mars colony could be mining "free enterprise. " the U.S. Court of Appeals that the minerals and using automated technologies initial denial of matching funds was under development now. illegal and unconstitutional, since Mr. LaRouche had satisfied all the legal requirements for matching funds. Foundations pour funds • TIlE LAROUCHE Campaign A new history of into 'peace' movement raised more money than Gary Hart in January and February of this year, Treason in America The elite American "Brahmins," through according to figures obtained fromthe Anton Chaitkin's groundbreaking study of their "philanthropic" foundations, < have re­ Federal Election Commission. La­ the creation of today's powerful Eastern Es­ cently begun t6 channel millions of dollars Rouche's net contributions (exclu­ tablishment, Treason in America:fromAar­ in new fu nds into the "peace movement," sive ofloans)totaled $534,407 . Hart's on Burr to AverellHarriman, was released according to a report in the New York Times total for the same period was March 28 by the New Benjamin Franklin March 25. A key architect of this effort is House Publishing Company in an initial run McGeorge Bundy;'former president of the $466,660. of 50,000.The first copies of the book were Ford Foundation. GARY HART'S 'NEW IDEAS' distributed at a rally in Pittsburgh, Pennsyl­ Among the new "peace" programs are • vania, where the author attacked the oli­ the following: will come from a familiar circle of garchical families responsible for destroy­ The Rockefeller Brothers Fund is shap­ advisers if he becomesPresident. The ing the state 's steel industry . ing a new mUltimillion-dollar program em­ candidate has revealed that his kitch­ The book , based on a four-year study of phasizing security issues and arms control . en cabinet would include the 91-year­ primary sources, poses the question: How The Ford Foundation announced a $3.7 old Nazi-supporter Averell Harri­ did a nation created as a model for the world's million grant for 16 universities to research man; Trilateral Commissioner Cyrus republics come to be dominated by the oli­ the ethics of using nuclear weapons. Vance, Secretary of State during the garchs who ruled the British Empire, the The Carnegie Foundation is committing Carter administration; and former very people whom the American Revolution approximately $7 million annually to "anti­ President Jimmy Carter himself. defeated? war studies" and it recently approved a Chaitkin exposes the gross distortion by $250,000 project for an analysis of weapons • TIlEIDAHO STATE legislature the history textbooks of crucial events in in space. Carnegiehas set up a panel headed passed a resolution at theend of March American history . Thomas Jefferson's vice­ by McGeorge Bundy to discuss future proj­ calling for a crash program for defen­ president Aaron Burr, for example , de­ ects in the area. sive weaponry. The resolution was scribed in all existing biographies as a "ro­ The Field Foundation of New York is introduced by Noy Brackett, a cattle mantic" miscreant, is shown in Treason in giving $500,000 annually for "peace and rancher and fifth-term legislator. America to have been a British spy , as well security projects." as the cousin and criminal partner of Jeffer- < The George Gund Foundation ofCleve­ • PITTSBURGH steel workers and son's treasury secretary , the Swiss Albert land is helping to underwrite the Interna­ other citizens demonstrated in front Gallatin. The underworld of Swiss banking tional Physicians for the Prevention of Nu­ of U.S. Steel headquarters March 28, is shown in action waging war against the clear War, and is also funding a study of in support ofthe election bid of Dem­ American Founding Fathers . military spending. ocratic presidentical candidate Lyn­ The author details: The Buffet Foundation of Omaha will don LaRouche . One hundred sup­ devote $1 million annually for three years to porters gathered in freezing rain to • the ties of disloyal Boston mer­ the "world<'s two biggest problems," pre­ demand a reopening of the steel chants--progenitors of today's Eastern Es­ venting nuclear war and limiting population plants, parity prices for farmers , and tablishment-to the British secret service, growth. great projects for world develop­ the slav� trade , and the East India Compa­ The Council of Foundations is sponsor­ ment. The rally was covered by the ny 's narcotics empire; ing a conference next mont/1 where mem­ Pittsburgh Post-Gazette and by local • the creation of the Southern secession bers will develop a joint program for "global radio and television stations . movement by Northerners and foreigners-- interdependence . "

EIR April 10, 1984 National 63 Editorial

The sp ring 1984 crisisis here

The world has now entered the strategic-economic cri­ that these would "increase costs." sis which Lyndon LaRouche has been warning, since The idea that there are "useless eaters" whom a October of last year, would occur at the end of March society in the throes of depression cannot afford to 1984. We are on the edge of a new worldwide financial support, is a Nazi idea. If this becomes accepted in the collapse, comparable to the international banking col­ United States, what hope can there be for other coun­ lapse of 1931. Argentina is going into default on its tries in the advanced sector, let alone in the economies debt, with unpredictable implications for Latin Ameri­ called "developing"? As EIR has warned repeatedly , ca and major U . S. banks . Western Europe is undergo­ these are the policies that will prevail unless we take ing economic and social chaos as a result of the British­ urgent economic-recovery measures, like those Presi­ provoked collapse of the European Community . The dent Franklin Roosevelt took to mobilize the U. S. Soviet Union has rejected the Kissinger-spopsored "back economy in 1939 to be able to fight and win the war channel" of voluntary sellout by the West and placed against Hitler. its nuclear forces on the highest status of combat • We must put the U.S. dollar back on a gold readiness. reserve basis , reversing President Nixon's 1971 ac­ The financial collapse could erupt before this issue tions , and pricing our monetary-reserve gold at about of EIR reaches you; it might not begin until the middle $750 an ounce. of April , and with a great deal of luck, it could be • We must suspend the powers of privately con­ postponed until October. trolled central banks like the Federal Reserve to print Yet, our government seems to have learnednothing money at their own discretion, to set interest rates, and from the bungling of the Coolidge and Hoover admin­ to create credit out of thin air. istrations. Now, as in 1931, our government is prom­ • We must hold emergency meetings with the Latin ising "prosperity just around the comer." American nations' heads of state to agree on reorgan­ The reality is most starkly expressed by the resur­ izing their foreign debt, and enter into a new interna­ facing of overt Nazi policies, proposed by leading pub­ tional gold-reserve monetary system. lic figures in the United States. It is not a coincidence • We must establish a Pacific-Indian Oceans Basin that in late March Colorado Gov . Richard Lamm, who development project, covering about $200 billion in happens to be a big supporter of one of the leading major infrastructure-engineering projects over about a Democratic presidential candidates, Gary Hart , made decade. Similar programs should be created for the a speech advocating active euthanasia for the elderly, Atlantic and Caribbean ocean-basins. and defended that proposal even when it was attacked These policies will create about 8 million new jobs as the very same crime against humanity for which Nazi in industry inside the United States. They will more doctors were triedand executed in the Nuremberg Trials. than pay for the medical technologies we need to pro­ Nor is it by chance that another prominent Demo­ long and enrich human life . cratic governor, New York's Mario Cuomo, is cynical­ The program outlined here is for immediate appli­ ly exploiting press scandals over the "Do Not Resusci­ cation in the United States, but the principles upon tate" orders in New York hospitals to force through which it is based are those which must be implemented "guidelines" which would effectively legalize euthan­ globally if we are to get through the coming weeks and asia. Although Cuomo claims to be appalled by the months without a worldwide economic collapse leading practice of pulling the plug on the elderly and seriously toward certain thermonuclear war. ill , he was in the forefront of moves to cut back spend­ As the current resurgence of Nazi euthanasia poli­ ing for advanced medical technologies on the grounds cies attests, we have no moral alternative.

64 National EIR April 10, 1984 Executive Intelligence Review

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