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Send check or money order CU .S. currency only) to: 21st Century Dept. E P.O. Box 16285 Washington, D.C. 20041 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokindo Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Edward Spannaus, Nancy Spannaus, Webster Tarpley, n Sept. 1, the fifth superior penal judge in C acas, Venezuela Carol White, Christopher White vacatedO the arrest order against Engineer Alejandro Peiia Esclusa, Science and Technology: Carol White � Special PrOjects: Mark Burdman secretary general of the Venezuelan Labor Party (PL V), and declared Book Editor: Katherine Notley closed the case brought against Peiia Esclusa by tJte Cisneros group Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol in March of this year. Peiiais a prominent leader of the political move
INTELLIGENCE DIRECTORS: ment founded by American statesman Lyndon H.' LaRouche, Jr. Agriculture: Marcia Merry Days earlier, a court in Pennsylvania terminatpd an incompeten Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg, cy order against Du Pont heir Lewis du Pont Smith. whose family had Paul Goldstein him declared incompetent in 1985 because of his political association Economics: Christopher White European Economics: William Engdahl with Lyndon LaRouche, stripped him of control over his fortune, Ibero-America: Robyn Quijano, Dennis Small and denied his right to vote and marry. Later, the family conspired Law: Edward Spannaus Medicine: John Grauerholz, M.D. to kidnap and "deprogram" Smith, in the lurid tale exposed by the Russia and Eastern Europe: Rachel Douglas, Konstantin George book Travesty. The Aug. 30 court order restores Smith's control United States: Kathleen Klenetsky over his financial estate. INTERNATIONAL BUREAUS: These victories against the judicial persecution of the LaRouche Bangkok: Pakdee Tanapura, Sophie Tanapura Bogota: Jose Restrepo political movement took place on the eve of a conference celebrating Bonn: George Gregory, Rainer Apel the 25th anniversary of LaRouche's philosophic l association, the Copenhagen: Poul Rasmussen �. Houston: Harley Schlanger ICLC, founded in 1969. Lima: Sara Madueiio The outlandish frameup of Peiia was covered lin detail in EIR on Melbourne: Don Veitch Mexico City: Hugo Lopez Ochoa April 29, May 6, May 20, and May 27, 1994. On hearing of the Milan: Leonardo Servadio ruling, Peiia Esclusa observed that his enemies �'threw their entire New Delhi: Susan Maitra Paris: Christine Bierre power, all of their propaganda machine, againsti me, and even so, Rio de Janeiro: Silvia Palacios they failed to imprison me. This shows that the Cisneros family are Stockholm: Michael Ericson Washington, D.C.: William Jones no longer so powerful. Not only has Carlos Andres Perez, to whom Wiesbaden: Garan Haglund they are closely tied, fallen, but their U. S. bedfellqws such as Rocke
EIR (ISSN 0273-6314) is published weekly (50 issues) feller and Kissinger, are also in trouble. The intejrnational financial except for the second week of July, and the last week of crisis has Chase Manhattan Bank, Rockefeller'S bank, in serious December by EIR News Service Inc., 333lh Pennsylvania Ave., S.E., 2nd FloOr, Washington, DC straits, and the bank could very soon experience: what happened to 20003. (202) 544-7010. For subscriptions: (703) 777- . 9451. Banco Latino." EUI"Ope/JII HellllqlUll1e,..: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, In the trial, the Cisneros Group alleged that P¢iia was a criminal 0-6200 Wiesbaden, Otto von Guericke Ring 3, 0-6200 Wiesbaden-Nonlenstadt, Federal Republic of Germany because he was tied to U.S. economist Lyndon iLaRouche, whom Tel: (6122) 2503. Executive Directors: Anno Hellenbroich, Michael Liebig they called a criminal. That line didn't work eith�r; an ad published In Denmarl: EIR, Post Box 2613, 2100 Copenhagen 0E, Aug. 11 in the Washington Post listed hundreds o�personalities from Tel. 35-43 60 40 In Mexico: BIR, Francisco Dlaz Covanubias 54 A-3 around the world, including 50 U.S. state legisl,tors, rejecting the Colonia San Rafael, Mexico DF. Tel: 705-1295. political persecution that LaRouche has suffered itlIthe United States. JIIfI/JII subscription saUs: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanohaha, Shinjulru-Ku, The ad was reproduced Aug. 29 in EZ UniversaZiof Caracas-three Tokyo 160. Tel: (03) 3208-7821.
Copyright © 1994 BIR News Service. All rights reserved. days before Peiia's full exoneration. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO Postmaster: Send all address changes to E1R, P.O. Box 17390, Washington, D.C. 20041-0390. •
TIillContents
Interviews Departments Economics 34 Roberto Formigoni 45 Report from Rio 4 Pres.dent Clinton opens A parliamentarian and leader of the Lula follows in Cardenas's new relationship with Italian. Popular Party (PPI), Mr. footsteps. Chi�a Formigoni has for many years been u.s. (:::ommerce Secretary Ron chairman of Communion and 64 Editorial Brown travels to Beijing to line up Liberation, the biggest Catholic How we lost the peace. $25 bfllion in trade deals, in a sharp youth organization in Europe. departure from what Brown called "a 121yeartradition of laissez-faire 51 Lawrence K. Freeman Book Reviews goverpment. " Mr. Freeman is a gubernatorial candidate in the Democratic 58 The Confederate 6 After Cairo '94, U.N. plots primary. in the state of Maryland. conspiracy of Lords g1ob"l economic Palmerston and Russell dictatorship Union In Peril: The Crisis over A report on the real agenda behind British Intervention in the Civil the U;N. ' s March 1995 conference Photo credits: Cover, Bundesbild. War, by Howard Jones. in Copenhagen on "social Pages 15,33 EIRNS/Stuart Lewis. develClpment. " Page 19, EIRNS/Rachel Douglas. Page 37, Agenzia Giornalistica 61 Books Received Who's boycotting Italia. Page 52, EIRNS. ' 9 Cair-p '94
10 Currency Rates
11 Agriculture Swissifarmers don't want GAIT.
12 Business Briefs Volume 21, Number36. September9, 1994
Feature International National 30 Cornered, Castro tries 48 Anti-Britis� foreign policy immigration war shift yieldi*g successes Fidel Castro's attempt to tum his The historic announcement of a own crisis into one for President cease-fire in Northern Ireland Clinton did not succeed-much to would never have happened, had the chagrin of the British and their Clinton not ablUldoned the U. S. allies in the Bush crowd. "special relationship" with Britain.
32 How communism fell in 50 Du Pont Smith declared Russian troops leaving Gennany in 1994, departing Czechoslovakia 'competent' by Pa. judge from the Berlin area. Now what's needed is a high speed Berlin-to-Moscow railroad, to start the recon A speechby Dr. Jozef Miklosko of struction from communist and International Monetary Slovakia. 51 LaRouche Democrat Fund devastation. challenges ADL, drug 34 'We are now in a new lobby in Maryland election 14 Social unrest is harvest of phase of Italian political An interview with Lawrence K. Russian shock therapy life' Freeman. Russian troops have now left An interview with Roberto , German territory, opening the way Formigoni. 53 ADL's frie.. ds nabbed for what President Yeltsin and again fostefing neo-Nazi Chancellor Kohl hailed as a "new 36 London plots for terror era" in bilateral relations. Now is technocracy to take over the time to move rapidly toward the A Canadian right-winger turns out Italy to have been agent provocateur LaRouche "Productive Triangle" an plan for European development; if for the Canadian Security the opportunity is not seized, 39 Perez de Cuellar: From Intelligence S�rvice. Russia will continue its precipitous U.N. capo to Peruvian plunge into economic and social 'Inca'? 55 The careerl of a hired gun, chaos. in his own words 41 Is Zaire Britain's next A profile of drlRowan. I 17 The IMF's geopolitics target? ruined the economies of 62 National News eastern Europe 42 Imam Larbi Kechat freed A selection from EIR' s new Special in France Report, "Russia's Future: Dictatorship, Chaos, or 43 Vatican spokesman gives Reconstruction?" Cairo briefing The Holy See's press director, Joaquin Navarro-Valls, stated the issues from the Vatican perspective on Aug. 31.
46 International Intelligence �ITillEconomics
President Clinton optens new relationship with China
by Kathy Wolfe
i u.s. Commerce Secretary Ron Brown traveled to the Peo and Prime Minister Li Peng, ;discuss an eventual visit to ple's Republic of China (P.R.C.) and Hongkong on Aug. 27- China by Clinton, and announFe that China and the United Sept. 3 as a special representative of President Bill Clinton, States will reopen their human Jtightsnegotiations in Septem accompanied by 24 chiefs of U.S. corporations who, Brown ber when Chinese Foreign Mihister Qian Qichen visits the said, hope to, in time, realize $25 billion in trade from the United States for the U.N. General Assembly meeting. "The trip. In Beijing on Aug. 29, Brown signed a Framework announcement that dialogue is toing to be renewed is a very, Agreement on Trade with Chinese Minister of Foreign Trade very positive sign," Brown sai� on Aug. 31. and Economic Cooperation Madame Wu Yi. President Clinton "has sent substantive signals that we Isolate the British regard China as a commercial ally and a partner-that Chi As EIR Founding Editor Lyndon LaRouche pointed out na's long history is deserving of respect; and China has re in an Aug. 31 interview, the Pr�sident and Secretary Brown's sponded," Brown told a Beijing press conference on Aug. actions are precisely what Am�rica needs to do in a difficult 30. "A new relationship is being built," Brown said. With the situation. The key, he said, is t�at "the United States and the Cold War over, President Clinton has made world "economic governmentof Great Britain are!complet ely, directly at odds" security" the cornerstoneof his foreign policy. "We are try on China. ing to provide leadership in commercial diplomacy. Our na "The British governmentp<:>licy is for civil war in China, tional security is inextricably tied to our economic security. on the occasion of the death or Chinese leader Deng Xiao By bringing American and Chinese firms together, and by ping, who recently celebrated �is 90th birthday," LaRouche pursuing the course of commercial diplomacy, we seek to set said. LaRouche referenced thd June Foreign Affairs article the stage for a new era of cooperation, growth, and progress. " "China's Changing Shape" by!Gerald Segal, China director Despite the gesture of friendship stemming from Clin of London's International Institute for Strategic Studies, ton's decision in May to end the link between human rights which calls for the bloody partition of China. "The British and trade and to renew China's Most Favored Nation (MFN) want a civil war in China as partof their policy of destruction trade status, however, Beijing also insisted on showing its of Asia. The British, of course, are trying to use the Hong communist face. As Brown landed on Aug. 27, P.R.e. po kong lever as a way of destabilizing China, also as a lever for lice took Wang Dan, a student leader of the 1989 Tiananmen looting China," he said. democracy demonstrations, into custody for 12 hours, re Clinton, LaRouche said, hasinstead introduced an entire leased him, and then detained him again on Aug. 31. ly new policy: using American technology to develop China. P.R.e. Prime Minister Li Peng also announced on Aug. "The U.S. policy is for peace(ul economic development of 31 that Beijing regarded the upcoming U.N. Cairo anti-popu China through economic cooperation," he said. "That is, lation conference "as of great significance." China, he said, human rights are discussed in the context of a positive issue: would send a high-level delegation, noting that Beijing's development. " one-child-per-family policy "has been a great success." "This does indicate a shift in U.S. policy, completely, Yet Brown was able to meet both President Jiang Zemin from the George Bush nonsense" of supporting Beijing's
4 Economics I EIR September 9, 1994 rulers, including Henry Kissinger's support of the butchery going beyond simply insuring that American firms find a at Tiananmen Square-while keeping the Chinese people in level playing field around the world," Brown told the Ameri abject poverty , LaRouche said. The key is that Clinton has can Chamber of Commerce in Beijing � "We are also commit- , decided to junk Britain's "free trade" economic policy in ted to playing to win." China, a trade in cheap labor in which Kissinger's consulting He was referencing the Bush free-trade policy known as firm Kissinger Associates and other Bush friends had made the "level playing field," under which Washington for several so much blood money. years has concentrated on kicking do\'{nthe protective tariffs Secretary Brown's statements before and during his trip and other necessary market structure� of America's trading bore out administration reports to EIR (see our report from partner nations, while leaving U.S. iddustry and labor com Aug. 26, p. 6) that Clinton and Brown want to ditch the pletely unprotected in the global mari(.et. This has collapsed British policy of cheap-labor Special Economic Zones American wage standards and impoveBshed our trading part (SEZs), which Beijing fo llowed until recently on London ners around the world. and World Bank demands . The SEZs are low-technology Instead, said Brown, "Asia must play a central role in our plants which "just use China for sourcing," looting China for future growth if we are to carry Ame6can global leadership cheap labor and raw materials, and mostly producing cheap into the next century. The U.S. govetnment is now playing goods to exportfrom China back into the United States. That an activist role on your behalf." lowers both Chinese and U.S. wages, he said. In Washington before his departure, Brown specifiedthat The Brown mission, the Clinton officialsaid , is meant to the Export-Import Bank will be used more in Asia. "We shift American investment in China into major infrastructure continue to work very closely with Ken Brody and his team projects and promote U. S. high-technology exports to China. at the Exim Bank. They've shown a great deal of flexibility The delegation, he said, "consists principally of U.S. export and, frankly, many of these transactions would not have ers of all kinds, including of high-technology, who produce come to fruition if the Exim Bank had not improved our things like heavy capital goods in the United States-which financing packages," he said. "I think the Chinese would creates jobs here-and which we want the Chinese to buy." very much like to do more business with the United States. As one Beijing official told the Hongkong journalluang We have somewhere around a 10% market share of the busi Chiao Ching on Aug. 16, the Clinton administration has in ness in China. In my view that's unacceptably low .... effect joined in an international move to "isolate Britain." We ought to be doing a lot better. As you know, President The most important part ofLi Peng' s recent trip to Germany, [Fran�ois] Mitterrand and Chancellor [Helmut] Kohl have he said, was to create "new policies and strategic arrange made highly publicized trips to Chinalseeking to enhance the ments ." These include dialogue and cooperation with the commercial interests of French and 'German business and United States, using the new Sino-German partnership as an industry. We intend to send a signal that we are going to example, in order to "check the U.S., isolate Britain, and compete and that we intend to compete aggressively. influence France," and foster cordial relations with eastern "The U.S. has been lagging behind in the Chinese mar Europe. ket, especially in infrastructure. In th�s mission, we focus on Germany, he stressed, has been "the most open country infrastructure. In selecting the 24 cOQlpanies in the mission, with regard to high-technology exports to China," and Li we chose telecommunications, transportation, and power Peng timed his trip to Germany, "cleverly" set to coincide generation. We're disappointed in tije degree of American with Clinton's trip to Germany the following week, thus participation in those infrastructure Jl>rojects. There will be linking China, in Clinton's eyes, to the friendly relations several hundreds of billions of dollars, spent on infrastructure between the United States and Germany. and development between now and t� year 2000. I certainly am interested in American companies participating heavily Clinton junks laissez-faire in those infrastructure projects; tha. is clearly one of the In meetings with President Jiang Zemin and Li Peng, a purposes of the mission. " possible upcoming Clinton trip to China as well as other On Aug. 30, Brown said that his delegation had already "high-level visits by officials of both China and the United signed $5 billion in deals. These included Energy Corp., States was discussed," Brown said. He delivered a letter to which will build a Chinese power plant for $1 billion, in Jiang from Clinton which, he said, was "much more than a partnership with the Lippo Group in Hongkong; the Wing simple expression of goodwill; it makes important points Group, to build another $2 billion Chinese power plant; and about the importance of our relationship and the importance Westinghouse, which will upgrade alpower plant in Beijing of our mission. " and form a joint venture with ShanglJ.ai Electric Equipment Potentially most important, Brown said on Aug. 29 that Corp. to manufacture power-generation components. Com Clinton "has junked a 12-year tradition of laissez-faire gov munications giant Pitney Bowes ahlo signed a post-office ernment" to fight for U.S. exporters in the global market, equipment deal and IBM signed a corpputerand telecommu with financialsupport from the U.S. Export-Import Bank and nications project deal, while General Electric, Chrysler and other U.S. government resources. "We are committed to TRW are expected to sign major conliracts.
EIR September 9, 1994 Economics 5 The Copenhagen Conference
Mter Cairo U.N. plots global '94, economic dictatorship
by TorbjornJerlerup
As this is being written at the end of August, it is not yet clear meant the need for a new policy for the intelligence communi whether the U.N. Conference on Population and Develop ty. On the financial side, he stressed the increased role of ment, scheduled for Sept. 5-13 in Cairo, Egypt, will take derivatives, globalization, and,the Third World debt as rea place or not. Whatever happens, it is clear at least that the sons for the CIA to closely monitor the world economic genocidalists behind the conference will not garnertheir de system to safeguard "political �bility. " He added that trade sired level of support for population reduction. Their attempt imbalances, the spread of protectionism, and the buildup of to build a worldwide consensus has failed. However, the high-tech industries in allied alnd other nations are dangers conference in Cairo is seen among the international power which have to be monitored. Webster concluded by stating elite only as a stepping stone toward, for them, a higher that "the intelligence communio/looks at these developments end-a global government. The purpose of the Cairo confer from a strategic perspective, examining . . . the ways that ence is, in their eyes, to get governments.to accept a global actions taken abroad can dire¢tly and indirectly affect our lawmaking body to decide about the most personal and inti national security interests." Tpis meant that the old East mate doings of the family. West condominium should be 1)eplacedby international con The U.N. is, in other words, acting like a Mephisto trol of global economic activity. So, the idea of a U.N. pheles, fromMarlowe 's play Dr. Faustus, who is attempting economic security council had Peen born. to seduce the Fausts of this world, the governments. If the At about the same time, in! 1988-89, the four Scandina governmentsmake a deal with the devil in Cairo, then it will vian countries-Sweden, Denmark, Norway, and Finland be easier to enforce a global government incoming years. set up a U.N. commission call�d the "Nordic U.N. Project." Next year, over March 6-12, the U.N. will arrange a The purpose of this commission was to generate "ideas and conference in Copenhagen on "social development." The proposals as to how the Nordic countries could make con real agenda behind this conference, which is planned to cele structive contributions to the �iscussion on reform of the brate the 50th anniversary of the founding of the U.N., is to United Nations in the economic and social field," according take the next step toward establishing world government. to their 1991 report "The Unit�d Nations in Development." The report detailed how the commission believes that the The old dream of a 'world directorate' U.N. Development Program (VNDP) should play a leading In 1988-89, it became more and more clear to the elites role in the reform process. The report advocates the use of of the westernworld that their old system of controlling the global environmental taxes anq U.N. Blue Helmet interven world had collapsed. The Soviet empire was doomed, and tions as a part of the global "governance." They propose that with that the system of Mutually Assured Destruction (MAD) an economic security council $hould be created to lead this also was doomed. They had to come up with new ideas of "governance. " how to control the world population. So, the idea of a global This report, together with silmilarreports from other com condominium between two superpowers was put aside and, missions, resulted in 1991 in ithe "Commission on Global instead, the old dream of the British-Venetian elite of a Governance." "world directorate," a world governmentto control the global In November 1991, the fonnerprime minister of Sweden , economy, was made the center of policy. Ingvar Carlsson, and Shridath [Ramphal, the former foreign This thrust became visible in a speech by William Web minister of Guyana, were eleqted co-chairmen of the com ster, then head of the CIA, to the Los Angeles World Affairs mission. The commission will release its finalreport in Janu Council on Sept. 19, 1989. He explained that "a historic shift ary 1995, only two months bqfore the U.N. conferencein may be under way fromEast-West military confrontation to Copenhagen. The commission: is working side by side with a global emphasis on economic concerns," and that this the UNDP on the question of "Global Governance." The
6 Economics EIR September 9, 1994 UNDP yearly Human Development Report, 1994 released in It may be politically correct, but it is irsane. June (see EIR, June 10), deals in depth with this question. ' The UNDP report demands global popUlation control, Third Who puns the strings? World disarmament, and an "economic security council," all Did the U.N. ever ask if we want such a global institution with the purpose of limiting national sovereignty. The work to decide over our heads what is rightiand wrong? Of course of the UNDP and the Commission on Global Governance not. Is the foundation for these "valqes" based on a higher will lead into the Copenhagen conference. concept of what is right and wrongj on natural law? No, rather on "consensus" and "compromise." So, what do you What is global governance? usually call this kind of "governancef' based neither on the In a presentation of the work of the commission, "Update participation of the people nor on natQral law? Dictatorship! 93/94," the commission is said to deal with four broadly Who is behind this drive for a global U.N.-led dictator definedissu es, namely, "global values, global security, glob ship? The commission is financedprimarily by the govern al development, and global governance." ments of Sweden, Denmark, Norwa)'l, and the Netherlands, On the question of global values, the president of the and by two foundations: the notorious U. S.-based MacArthur MacArthur Foundation, Adele Simmons, says in her written Foundation and the so-called World Humanity Action Trust contributionto this "update": in the U.K. "On the topic of 'global values,' the commission is at Undoubtedly, the most important of the individuals be tempting to assess to what extent certain values can be consid hind the commission is Adele Simmdns (a representative of eredto be universal, and to identify and promote values that the MacArthur Foundation), Maurice Strong (the man behind transcend economic, ethnic, national, religious, and social the environmental conferences in Stqckholm 1972 and Rio divisions. In its work, the commission is exploring a variety 1992), Frank Judd (director of Oxfam and a former British of issues from creating a set of enforceable responsibilities minister of overseas development), IDigvarCarl sson (a repre and rights derived from shared values, to examining ways to sentative of the Swedish elite who bas long promoted the develop and promote universal standards of human rights idea of a U.N.-led global dictatorship), and Brian Urquhart. both civil and political rights, as well as economic, social Urquhart has been an errand boy for the British oligarchy and cultural rights ....We must look for ways to encourage for a long time. He has been a U.N. qndersecretary general, behavior that is consistent with value-based goals." is now deputy chairman of the Stockh
EIR September 9, 1994 Economics 7 upcoming report. global governance.. ..Global institutions are necessary to The UNDP meeting was a preparatory meeting for the set rules, to monitor 'global goods' and 'global bads, ' to Copenhagen conference in 1995. The speeches and papers redress widening disparities. P�doxically, these global in presented at the conference all dealt with differentaspects of stitutions are weakening precis¢lyat a time that global inter global governance. The UNDP bureaucrats explained that dependence is increasing. All gjIobalinstitutions desperately we are facing a paradigm shiftin world affairs, and that it is need both strengthening and re:f!orm. time to "revalue all human values" according to a new set of "Take, for instance, the lJretton Woods institutions. "global goods and global bads" worked out by the United What should worry us today is Dot their seeming arrogance, Nations. To accomplish this goal the U.N. must have more but their growing irrelevance. Theyare no longer institutions power. Therefore, they called for U.N. "social conditionali of global governance, they aredow institutions to directeco ties" (instead of the old IMF-World Bank economic condi nomic management in the d�veloping world. . . . [The tionalities), a global police force, a "global tax," a "global Group of Seven] G-7, not thel IMF, influences the global insurance company," the reduction of military expenditures monetary system today. The rich nations hold their breath in the Third World, and an almighty "economic security for the pronouncements of [U .S. Federal ReserveChai rman] council." These proponents of genocide, such as NafisSadik Alan Greenspan, not of [lMF IManaging Director] Michel of the U.N. Population Fund, stressed the importance of the Camdessus. " Copenhagen conference in this context. "Out of that confer Afterthis praise for the internationalbanks-from a man ence, new and more efficient means of global cooperation who bragged in the Swedish press about how he, as finance can be born, a new world order!" she exclaimed. minister of Pakistan, tried to; sell out his country to the banks-he describes the details of how this dictatorship 'New imperatives of human security' should be administered. Here I-te focuses on the importance To understand the importanceof the Copenhagenconfer of the creation of an economic s�curity council with "a world ence, we must take a closer look at some of the papers pre central bank, a global taxation �ystem, a world trading orga sented at this preparatory Stockholm conference. The most nization, an internationalinvestiment trust, and even a world important of the papers presented was by "the chief architect" treasury. " of the 1994 UNDP report, Mahbub ul Haq, former minister "Such a council must deal! with all issues confronting of financein Pakistan, entitled "New Imperatives of Human humanity-from food security! to environmental security, Security." In it, he states that we are entering a phase-shift in from global poverty to jobles� growth, from international human security and that it is necessary to create a new world migration to drug trafficking," be writes. Then he demands order, a "global governance." He states that to accomplish that this U.N. "governance"alsO should have powers to force this we have to take "fivedetermined steps": countries to become more "derqocratic." "The firststep is to seek a new concept of development. "These ...steps can lead towarda new Human World . . . Growth opportunities . . . must be sustainable from one Order. A unique opportunityto �uild such an order will come generation to the next. The concept of sustainable human de at the time of the World Summh for Social Development in velopment is fairly simple: It is based on equal access to devel March 1995 in Copenhagen," he says. opment opportunities, for present and future generations." This sounds nice, but in reality he means that the old idea 17th-century empiricis� and the U.N. of technological progress has to be replaced by a new concept How do the people responsiblefor this political insanity of "environmentally clean" technology. In this kind of world, about world government/governancethink? all great development projects, such as those proposed by To answer this question, aQother paper presented at the Lyndon LaRouche, would be forbidden, and, as a conse UNDP conferencein Sweden is very useful. It is on the philos quence, the poor countries will have to stay poor. Industrial ophy behind the U.N. and is writtenby Benjamin Bassin, an production on a large scale has to be abolished in a "sustain ambassador to the U.N. fromtht Finnish Ministryof Foreign able society," and replaced by so-called low-cost labor, i.e., Affairs. He was involved in th� "Nordic U.N. Project" and slave labor. is heading the U.N. reform wdrk in Finland. The paperhe He then proposes that the U.N. should force poor coun presented to the conferenceis called, "What Role for the Unit tries to demilitarize, so that national sovereignty becomes an ed Nations in World Economic land Social Development?" impossibility. He states that the history oil"multila teral diplomacy" in As the third step, he proposes that all nations should face modem times can be divided !into three phases. The first economic sanctions if they don't accept the dictates of the began with the Congress of Vie,ma in 1815, the second with banks. This would take the form of fines against those who the Paris Peace Conference of [919, and the third withthe "depart from internationallyagreed rules of good conduct." creation of the U.N. in 1945. The Congress of Vienna was The fourth step deals with global economic dictatorship. founded on the philosophy of Thomas Hobbes and the idea Haq describes this as follows: "A fourth step in the search for that "only strengthcounts ," thaH'the weak either must submit a Human World Order is to fashion a new framework of or succumb." This he calls the f'aristocratic principle." The
8 Economics EIR September 9, 1994 Paris conference in 19 19 and the "Wilsonian concept" of "international rules" in the future. (0 this end, the U.N. the League of Nations were based on a more "democratic should be "the world's police force and humanitarianrescue principle" where nations should be ruled "under law," he service," and should have the capacity to "bind member says. This concept Bassin traces back to "Kantian humanism, states" to its decisions, according to Bassin. the French Enlightenment, and to 17th-century empiricism," I especially to the influence of John Locke and the French The philosophy of evil philosopher Montesquieu. The truth is that there is no differenceI between these two When the U.N. was created in 1945, it contained "some philosophies, the one represented bt Hobbes and the other elements of both the aristocratic and the democratic tradi by Locke. These two philosophies are nothing but pure evil, tion," he states. The influence from the democratic tradition and a mixture of them in the form df a new "global gover can be seen in the U.N. Charter of Human Rights, based on the nance" would be worse than a disastJr for mankind. concept of the social contract as the 17th-century empiricists Hobbes stated that whatever a �ing commands is right viewed it. The influence from the aristocratic tradition can be because the king commands it, and -ivhat the king forbids is seen in the U.N. Security Council where the Great Powers wrong just because the king forbids i�, and that the individual are able to influence and direct the work of the U.N. citizen never can claim that he knows what is right or wrong He explains that the 1945 concept is the best concept to because "might makes right." In his �hilosophy, natural law, use in the coming U.N. reform: "While it has to continue to a higher concept of right and wrongt does not exist. There accommodate the interests of the Great Powers, its long fore, according to Hobbes, we should obey the laws of God term development objectives should conform to the liberal, not because they are just and good bJt only because Godhas humanist ideals of the charter. " the power and commands us to obey his laws. The new system of "international governance" should be The philosophy of Locke is no better. He shared Hob based on the U.N. as a "proclaimer of international rules, bes's basic idea of God. According to his "Essays Concern norms and standards," Bassin writes. The U .N. should there ing Human Understanding" from 1690, God has given us fore be able to use "aristocratic" methods to "enforce" these laws and rules which we should obby because "we are his
ing abortion and extramarital sex o.fend the majorreli Who'sboycotting gions of Islam and Christianity. Other countries have downgrad d their delegations: Cairo '94 Two women heads of government f populous, largely Muslim countrieshave withdrawn: angladesh' s Khaled.a As of Aug. 31, three nations had withdrawn their delega Zia and Turkey'sTansu Ciller. Beg m Bhuttowas sched tions entirely from the Cairo '94 depopulation confer uJedto give theopening sPeech at e conference. Presi ence. One of thegreatest blows to thedepopulators came dent Suhartoo f Indonesiahas ann ou ced he willnot attend on Aug. 30, when the Kingdom of Saudi Arabia an the conference. nounced its plan to boycottthe conference. As thelnterna Somecountries whichare atte ndi havemade clear that tional Herald Tribune noted , Saudi Arabia is "widely they willnot meekly go alongwith the Cairo agenda. I srael's considered to be the Muslim world's most" influential first ambassador to the Holy See, S uel Hadas, told the , country,"and its boycott announcement "raisesfears that Aug. 30 German-language issue of Catholic publication other Islamic nations will follow suit." Jyoti Shankar Thirty Days: "The State of Israel' still working out its Singh, executive director of the Cairo event, confirmed position. . . . I think, though, that th position of the Jews, that Saudi Arabia had sent a letter to the secretariatof the inthis matter, willbe closer to that of Vaticanthan to the International Conference on ...• Population and Develop,: other side i,n the debate. Thiswas . est in a meeting on ment, proclaiming that the country would not attend the the family, which took place in My, in Jerusalem, and conference. According to Singh, "theyga ve no reason." which was co-sponsored by the Va 'can Commission for Notwithstanding, the highest Saudi religious figure, Relations with the Jews and the In ationalJewish Com Sheikh Abdulaziz ibn Baz urged his country and the rest mitteefor Inter-Religious Dialogue." of the Muslim world to "boycott the conference. It is A government official working Israel's position told incompatible with the Muslim religion." EIR thatthe Israelis w ould beuncom misingon the impor In addition,Sudan and Lebanon have withdrawnfrom tance of the family as an institution, and would insist that the conference. Lebanese Prime Minister Rafik al-Hariri decisions on childbirth andrelated IDf ttersmust be madeon announced the decision on Aug. 30, although he gave no the familylevel, notimposed b y govepnnents.F urthermore, reason. In bothcountries, theconference agenda promot- Israel wouldbe against "abortionon demand."
EIR September 9, 1994 Economics 9 creatures" and because "he has the power to enforce it by rewards and punishments." He continues: "Good and Evil ...are nothing but pleasure or pain, Currency Rates or that which occasions or procures pleasure or pain to us. Morally good or evil then, is only the conformity or disagree The dollar in deutschemarks ment of our voluntary actions to some law, whereby good or New York lateafte rnoonfixing evil is drawn on us from the will and power of the lawmaker; I which good and evil, pleasure or pain, attending our obser 1.80 vance or breach of the law by the decree of the lawmaker, is that we call reward and punishment." 1.70 No society can survive with this philosophy as its founda tion. The relation between man and nation-states has to be 1.60 II" �- I- guided according to a higher positive understanding of what I.SO� 'V - is right and wrong-natural law . Democracy without a foundation in natural law is evil. 1.40 The philosophy of the V.N., as Bassin and the oligarchy 7n3 7120 7127 813 8110 8117 8Il4 8131 behind the V.N. view it, is therefore wrong. This philosophy can only create slaves, not free men and women. Internation The dollar in yen al affairs must never be guided according to the will of the New York lateafte rnoonfixing
strongest. It does not matter whether the policies are decided InA by the Great Powers of the V.N. Security Council or by the
"majority" of voters or countries. It does not matter if the ,.,A V.N. is based on "aristocratic" or "democratic" ideas, or a mixture of the two. If the decisions are not based on natural I11A law, they must be evil. The same is true if the decisions 1100 are based on consensus and compromise and not on truth - seeking, to strive for the good. In that case it must also be ; evil. CIA This is the philosophical battleground and it is up to us to 7113 711.0 7127 813 8110 8117 8Il4 8131 decide if we will accept this Venetian-British worldview of The British pound in dqllars masters and slaves. There is an alternative to this bestial New York lateafte rnoonfixing worldview , and it is the philosophy based on the science of i man as it was developed in the Renaissance. In "How Ber 1.80 , trand Russell Became an Evil Man" (Fidelio, Fall 1994), Lyndon LaRouche describes this in depth. 1.70 So what should we do with the upcoming V.N. global ! government/governancesummit in Copenhagen? We should 1.60 r---.. A do what LaRouche proposed on June 8 on the weekly radio I.SO interview "EIR Talks": "When people start making these kinds of noises about 1.40 supranational government, I treat that itself as a casus belli. 7n3 7120 7127 813 8110 8117 8Il4 8131 This has to be settled. This nonsense has to stop. I think we ought to shut down the V.N. unless they can stop this The dollar in Swiss francs blathering about utopian world government. I think that's the New York lateafte rnoonfixing only answer. "You know, there are some things, like some guy raping 1.60 . a woman. And you don't accept from him the argument, 1.50 'Don't object until you give me a satisfactory alternative.' Eh? You stop the rapist. And in this case, we don't have to 1.40
discuss alternatives, or we don't have to discuss improve - : ments or modifications in what are criminal designs. The 1.30 � � � I- criminal should simply stop committing crime, or we have to take measures to induce him to do so, contrary to his will. 1.l0 I think that's the only answer." 7n3 7120 711.7 813 8110 8117 8Il4 8131
10 Economics EIR September 9, 1994 Agriculture by Rosa Tennenbaum
Swiss farmers don't want GATT rations in Swiss politics. It will destroy the middle class, starting withfamity fa rmers The path Ehler and the SBY chose is the same that all major farmers' as and government payoffs are nothing but a mirage. sociations have t�en, betrayingtheir members' interests: He demands fi nancial compensl!-tionby the state. For each percent of bost increase in the witzerland is supposed to enter the mated, the average income for Swiss farms, Ehler demands SF 100million GeneralS Agreement on Tariffs and farmers in 2002 will be 45% lower from the government. He will never Trade , GATT, the supranational free compared to 1993, if the GATT pro get that, of cou�se, as he very well trade organization that has slashed and visions are carried out. knows, but it's a goodway of keeping burnedits way through many a nation This still excludes inflated prices the association's membership on pins al economy. That's what the interna for farmers' regular investments. and needles. tional institutions want, and that's Even if everything the farmer and his Besides that,the SBY wants invest what the Swiss Businessmen's Asso family buy in the next eight years has ment in "improv� structures," or, to ciation and the Swiss Farmers ' Asso the same price as today, the family put it more clearly, a structural change ciation want. Only the Swiss them income will drop by half. If inflation in favor of bigg�r farms. Of course, selves don't want it very much, and is only 1 % higher than the rationaliza they won't considerthe fact that Switz especially not the Swiss farmers. tion measures the farmers will proba erland's geographical topography, They have good reasons, which are bly take , they will have 58% less, the with its steep m(>untains and narrow little by little coming out into the pub institute calculates. As inflation will valleys, sets a linltiton that. "Structur lic light. very probably be higher than that, al development" is the SBY's magic In Switzerland, as elsewhere, around the tum of century, farm fami word; with it the SBY denies any farm incomes have been steadily de lies will have to live on substantially blame, putting h into the farmers' clining in recent years . An average less than half of what they have today. hands. They areb't "enterprising" or farm with a cultivable area of 18 hect This was predictable, since it con "dynamic" eno�gh, they failed to ares was already operating about forms to developments already seen in grow. A farmer :in the Swiss moun 25 .4% below breakeven in 1991; a the United States and European Com tains is supposed to enter into compe year later the deficit increased by an munity (now European Union). Nev tition with a New Zealanddairy farm other 4.6%, and 1993 by 11.4% more . ertheless, the Swiss Farmers Associa er, who is able to produce milk for a The income of an average farm tion (SBY) is campaigning for a Swiss fraction of the cost, thanks to natural family plummeted within three years GATT membership. conditions. It works--on paper. from 97,645 Swiss francs to In mid-April, Melchior Ehler, di The Swiss New Farmers' Coordi SF 61,879 francs. The Swiss govern rector of the SBY , sided, surprisingly, nation (NBKS) group had warned ment has endorsed the GATT mea with Swiss business in favor of their colleagues barly in the yearthat sures, but the Swiss citizens have not GATT. Since GATT would improve free trade will wipe out a major part yet decided whether they will approve business for other parts of the econo of small and m�dium-sized industry GATT regulations (in a future referen my , it was argued, GATT would also and farms, and challenged the agricul dum) . In fact, the prospects for it are be good for the farmers. tural establishDjlent with meetings not so rosy, because the opposition The contrary is true: Because free which often were crowded with hun is huge. Yet the Bern government is trade policies will wipe out the medi dreds of people� The SBY answered acting as if the voters had already vot um-sized sector, including its main with a broad slaqder campaign against ed in favor of GATT. stay, the family farms, the whole the NBKS and its collaborators in the Accordingly, agriculture's future economy is going to suffer immense Schiller Institute!. It talked about "for looks bad. In the current year, rural ly . But nothing will put a function eign manipulati�n" and "sinister con incomes will shrink a further 36%, ary's reason to sleep faster than the spiracy theorie$. " Obviously those which for the average farm corre sound of coins or the promise of a bet things do, in fadt, exist: in the places sponds to a new loss of SF 22,839, or ter position. And it's no secret that where one findslIerr Ehrler, the SBY, SF 1,211 per hectare. As the Re the "playboy of Swiss agriculture," as and numerous otherenemies and slan search Institute of Taenikon esti- he's universally called, has high aspi- derers of the N�KS.
EIR September 9, 1994 Economics 11 " BusinessBrief s
Africa fect, the electronshells are hollowed out; in Chad's oil njservesare estimated at about 200 the familiarform of ionization, it is the outer million tonsiand could produce 2 million bar Millions in East Mrica electrons that are removed. When other elec relsa day fo� 20 years. The Chadians arehope trons rushin to fillthe inner void, they emit fulthat the ompletion of the pipeline in five facing starvation q extremelyenergetic X-rays. These X-rays are years will hellpalleviate their country's excru also coherentand could possibly be harnessed ciating poverty. Millions of peoplein East Africaface hunger to build an X-ray laser at wavelengths shorter The Ch�an oil reserves,some of which and starvation, the U.N. Food andAgriculture than are available today. (SoftX-ray imaging arealready tieing exploited at Sedigi, have en Organization(FAO) warnedin its latest Africa devices weredeveloped over the past decade genderedmQstofthe 14-year-oldstrifethathas report. by the PrincetonPlasma Physics Laboratory , aggravated ad'S poverty. Deposed Presi Just in the Hornof Africa,4.7 million tons Lawrence Livermore National Laboratory, dent Hissen Habre is alleged to have met his of grain are needed to preventa human catas and other groups.) ousterbecau he signed a contractwith Exxon trophe. This is double the amount of food aid The ability to image a very small object is for oil explo� tion without consulting France, that was needed lastyear; but instead, less food limited by thewavelength of the light being which consi ers Chad in its sphereof influ aid is available internationally. used, which must besmaller thanthe dimen ence. This time, Elf Aquitaine succeeded in In Burundi,the food situation is "critical"; sions of the object. Rhodes says that a hard securing 20% of the deal. in Tanzania, the situation is worrisome; in X-ray laser would "implement a new form of Preside� Paul Biya of Cameroonreport Uganda, peopleare already starving; in Ango biological seeing, one that would revealhere edly linked his acceptance of the pipelineto a la, the food situationis "bad"; and in Malawi, toforeunseen biological processesthat ripple guarantee �m Chad that it will stop the flow the survival of 3 million people depends on throughthe living world." of armsfueliPg a bloody tribalwar in northern food aid, the FAO said. Cameroonbetween the Kotokos and the Arab The FAO appealed to the international Chaos. community to act immediately and in acoordi nated way, and to offerpropo sals for an "im mediate, coordinated, and broad-scale relief Energy action on how to reconstruct agriculture as well." On a long-term perspective, the con Chad-Cameroon oil Medicine: stant crisis in Africa will only be overcome pipeline under way Nutrie t may be linked if productivity and productionin general are � significantlygeared up . A consortiumof oil companies, including An to mv � AIDS treatment glo-Dutch Shell, Esso, and the French Elf Aquitaine, have undertaken the construction Scientists at the University of Georgia suggest of a I ,500-kilometer pipelinefrom the land that a protein produced by HIV, the virus Science locked CentralAfrican state of Chad to Came which cause. AIDS, depletes the bodyof sele roon. The pipeline, whichwill stretchfrom the nium, an essj:ntial trace element. Ina paperin New method found for Dabo oil fieldsin the Touboro regionto the the Aug. 191 issue of the Journal of Medical Atlantic seaportofKribi in the south of Came Chemistry, tJteauthors predictthat HIY con producing hard X-rays roon, will cost about$2 billion and will take tains heretofore unknown genes, some of approximately two years to construct.Sources which make: the selenium-based amino acid A team of scientists at the University of Illinois in Paris say the World Bank will provide50% selenocysteihe. Based on similarities to a in Chicago led by Charles K. Rhodeshas dis of the fundsfor the pipeline, whilea group of known activ�tor-repressorgene of another vi covered a means of producing "gigantic" Americanbanks will provide the rest. rus,they sp¢culate that one of the unknown amounts of energy in the form of hard(short The finalagreement on the project was ar HIY genes producesa proteinthat could act to wavelength) X-rays, according to theirarticle rived at during a visit to Yaounde, Carneroon repressHIV �scription, and selenocysteine and a commentary by BerndCrase mannin the by Chad military leader IdrissDerby on July is a compon4ntof the proposed repressorpro British magazine Nature, the Aug. 25 New 15. Work is expectedto start in 1996. Engi tein. Acconilngtothetheory, whenaninfected York Times reported. neering multinationals such as Canada's La cell has beeq depleted of selenium and the re Rhodes's team bombards clusters of xe valin Internationaland the French groupsBou pressor pro�n can no longer beproduced, the non atoms with intense ultravioletradiati on. ygues, Spie, Batignottes, and Technip are HIY is trigg,t:red to replicate and spread the This causes the outer electrons to oscillate co lobbying to get the constructioncontracts . infection. TIius, an adequate level ofselenium herently, transferring a large amount of energy Cameroon hopesthe pipelineand the an in the diet III/ly delay the onset of AIDS. to the inner electrons, knocking several of cillary industries thatwill grow out of the Kribi At this wint these concepts arehypotheti these tightly boundinner electronsout. In ef- deep-sea portarea will createabout 2 ,000jobs . cal and furtJter experiments are needed to
12 Economics ElK September 9, 1994 l
• UNEMPL(>YMENT in OECD nations has re�ched 35 million, the highest since �930, according to a report by the I"ternationalLabor Or prove the existence of the genes. However, floodcontrol even at the expense of cutting ganization. TIie ILO states that this these findings"could have significantimplica back on some capital constructionpro jects." crisis cannot be solved by market tions for genetic approaches to the treatment Meanwhile, China has announced plans to forces, but th4 measures offered by of AIDSbecause they openup the possibility issue stockto pay for the Three Gorges Dam. the ILO are limited to calls for labor of creatingarti ficialrepressors or boosting the Beijing has been using the profitsfrom the market deregUlation, free trade, synthesis of the natural repressor," saidE. Will Gezhouba Dam, the largest dam and power some forms Qf "market stimulus," Taylor in Chemical and Engineering News. complex in China, to pay for the ThreeGorges Taylorheaded theresearchteam at the Compu construction. Gezhouba, whose profitswere and foreign ex�hange stability . tational Center for Molecular Structure and about$250 million last year, will bemade into • INDONESIA plans to build 12 Design and chairs the university's Department a joint-stock company and the shareswill be nuclear powe� plants of 6OO-mega of Medicinal Chemistry. floatedon Wall Street. watts each ov�r the next 25 years, While based on what Taylor terms"theo reticaland circumstantial evidence," the wode according to tileAug . 10 Wall Street Journal. Con�truction of the first could help to explain why some HIV -positive plant is to be�in on Java island in individuals do not develop AIDS symptoms May 1996; el�ctricity production is for long periods of time and why many of those scheduled to sM in 2004. most susceptible to AIDS tend to bemalnour Ukraine ished. Air Force may be sold • JEFFREY! SACHS peddled his lunacy in Beiji�g in late August. Chi to pay for Russian gas na's reforms $"e "most successful," he told the Au•. 20 China Daily, due Infrastructure Under the threat of new Russian gas supply to the "milliot$of people ...work cutoffsand slowdowns, Ukraine is consider ing diligentlt and earning low China announces major ing selling part of its Air Force as "payment in wages," provi4ing China with a "reli kind" for its debts to Russia on gas deliveries able labor forte." Sachs urged that water diversion project made earlier this year, according to statements most state ind*striesbe shut down. on Aug. 24 by Ukrainian Defense Minister China announced over the weekend of Aug. Gen. Vitali Radetski. The deal may involve • MEXICOCentral BankheadMi 20-21 a multibillion-dollar water-diversion fighters, fighter-bombers, and long-range guel Mancera r.ejected the idea of set project, to bring water fromthe south of China bombers. ting up deriva1livesmarkets as partof to water-scarce northernareas, BBC reported. Sources report that this "debt for equity" Mexico's fin · cial opening. "There Details werenot given, but BBC noted that arrangementwas cooked up by Ukraine Presi is great defici; cy in the areasof reg southern China has been repeatedly hit by dent Leonid Kuchma. Since taking officeon ulation and fi ancial supervision in floods, while the North has been hit by July 19, Kuchma has been weakening Ukraine Mexico and o�er countries," he said. drought. Poorinfrastructure is blamed for se by moving to accornmodate Moscow in its vere water crises, which are affecting at least push for a "Slavic Union" among Russia, • GERMAN bankruptcies are ex 27 Chinese provinces, including Anhui, Hu Ukraine, and Belarus, and by moving to reach pected to rise trom15, 000in 1993 (a bei, and Szechuan. Often, the water is not an agreement with the InternationalMonetary 20% and 44%1 increase over 1992 in drinkable and peasants aredesperate to get wa Fund. On July 11, the day his election victory western and pastern Germany, re ter for irrigation. was confirmed, Kuchma was on the phone spectively) to 18-20,000 cases in Devastating floodingis also underscoring with IMFManaging Director Michel Camdes 1994, the head of the Germanfederal a lack of floodcontrol investment. So far this sus. One week later, he met Camdessus in association f EIR September 9, 1994 Economics 13 IIillFeature Social unrest is harvest of Russian shock therapy by Denise M. Henderson At ceremonies in Berlin on Aug. 31 marking the end of the Soviet-Russian pres ence on Gennan soil, Russian President Boris Ye�tsin and Gennan Chancellor Helmut Kohl exchanged very friendly remarks . Y¢ltsin hailed the "new era" in Russian-German relations, and stated that "a new stage in our bilateral relations has begun. We are looking to this with optimism and hope." Yeltsin praised Chancellor Kohl several times, saying that this hope has stemmed "from the actions of Helmut Kohl. ...We are great friends ....The new Russia and the united Germany are striving today to definetheir piltcein the changed world .... The postwar period of Russian-German relations is over with. It is being replaced by a period of friendship and cooperation." There is "something in the wind," as Lyndon LaRouche noted in an Aug. 31 interview with HEIR Talks." Calls which echo LaRouche's 1989 Productive Triangle proposal for a hub of high-technology indu�trial and infrastructure devel opment within the Berlin-Vienna-Paris region, which would spark the rapid eco nomic development of the newly reunifiedEurope , are coming from many differ ent levels of policymaking. These include the large-scale infrastructure-building projects proposedby former European Commission President Jacques Delors, and welcomed by both Kohl and U.S. President William Clinton. If these potentials are realized, it won't come a moment too soon for the crippled economies of Russia and its former satellites in eastern Europe. In the report which follows, William Engdahl analyzes tJ:Je consequences of four and a half years of International Monetary Fund (IMF) and World Bank policies in easternEurope , including the former Soviet Union. t;nlessthe Productive Triangle approach is implemented, the West will finditself facing a hostile Russia armed with nuclear weapons seeking to restore its borders,: and its former empire. Shock therapy paralyzes the patient What has been the overall result of Harvard punkJeffrey Sachs's shock therapy on Russia? Sachs, along with other IMF flunkies sllch as Anders Aslund, at the 14 Feature EIR September 9, 1994 President George Bush awarding his cohort fo rmer Prime Minister Margaret Thatcher the Medal of Freedom. the highest U.S. civilian medal. after their one world geopolitical designs had all but destroyed the economies of the fo rmer socialist nations. A new policy thrustfor Eurasian cooperation fo r economic development is emerging. and none too soon . behest of the IMF and the World Bank, proposed a so-called weekly Argumentyi Fakty (No. 32, ugust). Thereupon "old liberalization policy for Russia: liberalization of prices and ladies' revolts" rolled through Russia. In mid-August, in the privatization of state businesses leading, in its latest phase, Ural city of Chelyabinsk, pension�rs demonstrated at the to the shutting down of those enterprises which cannot tum provincial Department for Social Protection. In Ivanov, vet a profit. This supposedly benign shock was administered erans picketed the legislative assemb1y. In Kursk, pensioners through their wiIIing Russian cohort, former Russian Prime attacked the center where pensions kre dispensed. A "tense Minister Yegor Gaidar. situation" was reported in Krasnoyarsk and Syktyvkar, while Through such means, the IMF put Russia on the road to in Yekaterinburg, Ufa, Petrozavods�, and Moscow there is its latest crisis, demanding inflationbe stopped as a precondi serious concern about a "social explosion." tion for any loans. (Inflation that sometimes hit an annual rate of 2,000% was touched off by the IMF-prescribed price More cuts in social spendin liberalization of January 1992 in the first place !) Thus, against a background of Jever-decreasing tax reve The business section of the weekly Moscow News for July nues, the budget is being "economized" by sharply reducing 31-Aug. 7 reported: "According to a report of the Russian expenditures for social needs, abo e all at the expense of I Federation Government Center for Economic Conjuncture, those layers of the population which the government has there has been success in the recent period, in accord with deemed "useless" and who, it is believed, cannot mount the wishes of the International Monetary Fund, in sharply serious resistance to the attack on the· r rights. In some places, reducing the rate of inflationto 5.1 % per month" in July. But rage at government policy has assumed extreme forms. Dur in order to bring itself into accord with the ruinous policies ing the week of Aug. 15, a passenger train was blown up in of the IMF in order to "reduce inflation," the government the Siberian city of Chita, in what some experts called an slashed or froze payments. This paralyzed what remains of act of sabotage, a sign of protest and despair committed by Russia's real economy. workers who had not been paid for several months. I These measures also meant that the most impoverished Large-scale shutdowns and bankruptcies in Russian in- citizens suffered most. The denial of an anticipated increase dustry, resulting in growing mass unemployment, are expect in pensions, for example, caused a minor social explosion. ed to continue and increase during the fall. Thus, the risk of After both houses of Parliament voted almost unanimously a social explosion is being discussed more and more openly for a 150% increase in the minimum pension effective Aug. by officials and in the Russian press. On top of a renewed 1, President Yeltsin ordered the pension floor lowered by crisis of payments among enterprises, the tolerance of work 115%, back to nearly the previous level, according to the ers and soldiers for non-payment 0 their wages has reached EIR September 9, 1994 Feature 15 a breaking point. lation, as living below the m�nimum subsistence income. As of Aug. 25, the Russian government estimated that Some 3% of workers, when tlfy are paid, receive less than inter-enterprise debt had reached 112 trillion rubles ($56 bil 61,600 rubles per month, whilFa monthly market basket of lion), almost as much as total governmentrevenues for 1994. 19 vital food products cost 62, 00 rubles. A wave of bankruptcies threatens to put 8 million people out of work by the end of the year. Strike wave begins Those who are still working are not being paid. Total The first strikesbroke out ' late August, beforethe end liabilities of Russian enterprises to their workers have of the summer vacation peri . Industry-wide strike threats reached 3.4 trillion rubles ($1.7 billion), affecting at least have appeared simultaneously n all vital sectors of the econ 33,000 firms, and the backlog grew by 16% in June alone, omy: transport and communic tions; the steel industry and according to Russian government statistics cited in the Rus the metals sector; the energy ector, including coal mines, sian edition of the London Financial Times. Reports have oil and gas fields, and nuclear wer plants; and the military reached Moscow that some atomic power stations will have industrial complex. to close because, after the imposition of layoffs connected The turmoil also threatens to engulf the Armed Forces. with the non-payment of wages, insufficient personnel re Soldiers and officers, as do orkers, receive their wages main to operate them, while other key plants face Sept. 1 three to four months late. Col nel Deryugin of the Associa strike deadlines. tion of MilitarySociologists portedin a recentarticle that On Aug. 24, Vice Prime Minister Yuri Yarov told Rossi officers in the Far East and ransbaikal Military Districts iskiye Vesti newspaper that he would not rule out strikesthis receive enough to cover only 2 -30% of their living expens fall, and demands for pay that the government could not es. The military daily Krasna a Zvezda (Red Star) warned handle. that unrestin the Armed Forces an be expectedif this contin Since Aug. 5, a special commission under First Deputy ues. In Vladivostok in the Far ast, Rossiiskiye Vesti report Prime Minister Oleg Soskovets has been trying to end the ed, officers' families picketed e naval base to demand back internal debt crisis, without success. On Aug. 17, Soskovets pay. Krasnaya Zvezda has p blished letters saying, "We declared, "We must not be afraidof bankruptcies," and said have nothing to lose and are ready for anything." that the state would be tough on companies failing "to make On Sept. I, the millions alre�dy clamoring for their unpaid the transition to a market economy." He termed a further back wages-from May on-Will be joined by millions of drop in industrial production "inevitable," and ruled out mea other workers who were sent Qff on forced, unpaid summer sures to protect Russian industry from cheap foreign imports: "vacations" and told to report b4ck to work on that date. Strike "We must not be confused by some pseudo-patriotic idea deadlines of Sept. 1 have been tssued by the workforce of the about defending our markets. The state cannot stem the in entire Norilsk region in northqn Siberia and at two nuclear flowof foreign goods. " power stations, in Smolensk and on the Kola Peninsula. But five days later, Soskovets raised the possibility of price controls and lashed out against people "who believe the The way out formation of a market should occur in circumstances of total As presidential candidate Lyndon LaRouche noted in a chaos." By Aug. 25, the governmentwas back to denying it radio interview on Aug. 31, "fhe principal implication" of would impose price controls. the cordial Kohl-Yeltsin inteI"Clhange in Berlin that day was Earlier this year, Russia experienced drastic underinvest "not the withdrawal of the tr�ps, but rather the use of the ment in agriculture, as a result of which there will probably occasion of the withdrawal of the Russian troops to open up be a huge shortfall in the grain harvest. The price of bread officially, new economic rell¢ions between Germany and has already doubled in the past several weeks, to approxi Russia. mately 700rubles per kilogram, and is expected to shoot up "This is facilitated," he adclled, "by the fact of the estab by the onset of winter to 3,000 rubles (nearly 10% of a lishment of a kind of pan-Slav� Union, which now includes monthly pension). virtually Belarus, or White Rqssia, which signifies that the A similar process, the result of a decision to free prices Berlin-to-Moscow railway dev�lopment project, is probably on bread and milk, has taken hold in Belarus, a republic now in on as a signal piece. It's a si$Jlal project, in which a new the Commonwealth of IndependentStat es. Increases in bread development corridor centered on rails from Berlin to Mos and milk prices there resulted in a decline in production levels cow, will be key. of these two staple items. The decline, say officials, is due to "So, in general," concludeq LaRouche, "this is acontinu the fact that compensation payments, designed to offset the ation of the policy which Pre!iident Clinton announced in effects of the price increases, had not yet been fully dis Bonn and Berlin during his July visit to Europe. We'refairly tributed. optimistic about good things happening, though there are , Before the latest austerity, the Russian Ministry of Labor imminently, very profound cbanges about to occur inside had already identified 24 million people, 16.4% of the popu- Russia and Russian policy as s,ch." 16 Feature ElK September 9, 1994 The IMF's geopoliticsruined . the economies of easternEurope by William Engdahl The fo llowing is abridged from a study that appeared in a seminal policy thesis first present¢d to the British Royal EIR's Sp ecial Report "Russia's Future: Dictatorship, Cha Geographic Society in January 1904.This policythesis forms os, or Reconstruction?" published in August 1994 . EIRpub the ideological underpinnings for Brj.tain's determination to lished an abridged version of the report's Chapter 11, by orchestrate the events which led inehictably to World WarI, Lyndon H. LaRouche, under the title "A Science-Driver Pro as an attempt to destroy the influenceof the German empire gram to End Russia's Depression, " in our April 22, 1994 in continental Europe. But the essay !has also shaped British issue. diplomacy to the present day. The paper, "The Geographical Pivot of History" was In October 1993, former British Prime Minister Margaret authored by Sir Halford J. Mackinder, a Reader in Human Thatcher released her political memoirs, The Downing Street Geography at the University of OxJlord. His theses can be Years. In her account of the events surrounding the opening summarized briefly as follows: of eastern Europe at the end of the 1980s, Thatcher was • "Who rules eastern Europe,"l meaning German-cen remarkably blunt. She wrote: "The German question and the tered Central Europe "rules the Heartland," meaning Russia consequences of reunification were my chief preoccupation centered Eurasia; when, in September 1989, I decided during my return trip • "Who rules the Heartland, controls the World Island, from a conference in Tokyo, to pay a brief visit to Moscow meaning the Eurasian landmass from Vladivistok to the At in order to talk with Mikhail Gorbachov." Thatcher added, lantic; and, "I told him quite frankly that while we in Europe traditionally • "Who controls the World Wand, rules the entire acknowledged the goal of German reunification, in reality World." this caused us great concern. This I added, was not only my But the corollary to this doctriqe of geopolitics is the own opinion; I had also discussed this question with another British stance toward this geopolitic&l view of Eurasia. Brit top political figure, by which I meant President Mitterrand. ain as a global empire and an "Island!Power" separatedfrom . . . This [discussion with Gorbachov] strengthened my own continental Europe by the English Cpannel, in Mackinder's resolve to slow the already hectic tempo of developments. ,,1 view, must do all in its power to hinper any successful con Thatcher's hostile view of the transformation possibilit vergence of economic and political cOoperation between the ies in eastern Europe,and most emphatically against German nations of Central Europe and Russia. unificationin 1989-90, is thus a matter of public record. Such Thus, the prospect of a German-dominated group of Eu a response from Britain at the end of the twentieth century ropean states, including France and I_aly, extending industri would be astonishing only if one were ignorant of the long al and financial cooperation to construct modem industrial standing British doctrine of "balance of power" or "geopoli economies in Poland, East Germany ,:Hungary, and especial tics," in which British politicians and diplomats have been ly Russia, was anathema, not onl� in the view of Prime schooled at least since the 1815 Congress of Vienna. Minister Thatcher, but also of leading figures in the City of London, the Foreign Office establishment, and the U.K. Sir Halford Mackinder and media. German unification In the United States, this view was most explicitly echoed To understand the way the Group of Seven industrial by former Secretary of State HenryKissin ger, who spoke nations, beginning in 1989, responded to the potentials of out from his position as head of his private international changing economic structures in eastern Europe and the for consultancy, Kissinger Associates. i He drafted numerous mer Soviet Union, it is best to begin with a brief review of newspaper columns after 1989 openly warningof the dangers of a strong Germany. I. Margaret Thatcher. Downing Street No. 10: Die Erinnerungen, Econ Kissinger was very influential at the highest levels of Verlag, Diisseldorf, 1993 . Sir Halford Mackinder, "The Geographical Pivot of History ," in Geographical Journal, No. 23, 1904. Royal Geographical the Bush administration. Two intimate collaborators, both Society, London. formerly with Kissinger Associates, held key positions with- EIR September 9, 1994 Feature 17 in the Bush administration: National Security Adviser Brent employment from about 30,OOOiworkers in 1985 to just 7 ,000 Scowcroft, and then-Undersecretary of State Lawrence Ea as of 1987. Although fiscally nttcessary,the results are stun gleburger, who later replaced James Baker, as in 1992, as ning and indeed reflecta social tfagedy. Many of these work full secretary. ers are still unemployed or ha1e gone to the coca-growing President Bush himself appeared at best ambivalent about regions to find work." This frqrn the man who was to be a German unification. When reporters asked the President for key adviser in Poland, slated �o be the model for eastern his comment when the Berlin Wall came down on Nov. 9, Europe. I 1989, a solemn Bush replied, "Well, I don't think any single Soros was very well conneched in both Washington and event is the end of what you might call the Iron Curtain." London, which meant he could get the ear of the highest Privately, Bush reportedly told aides, "I'm not going to dance government levels in economically desperate eastern Eu on the Wall!" Only when German unification was clearly rope. He also introduced Sachs ijntoYugosla via, where Soros unstoppable did Bush appear to support German develop was also present through his !"philanthropic" foundation. ments in the face of U . S. popular approval. Both Poland and Yugoslavia i troduced Sachs-IMP shock In 1989, there was a policy accord among the govern therapy on Jan. 1, 1990. �i ments of Britain, France, and the Bush administration, to Soros later boasted of his a�d Sachs's success in Poland: ensure that economic events in eastern Europe did not lead "Balcerowicz presented a radical program of monetarystabi to the kind of industrial transformation boom and construc lization to the InternationalMonetary Fund meeting in Wash tion of economic infrastructure at which German industry ington [September 1989]. The mMF approved, and the pro would surpass all others. This explains the rigid insistence of gram went into effect on Jan. 1� 1990. It was very tough on those three governments that the International Monetary the popUlation, but people wer� willing to take a lot of pain Fund (IMP) should be at the center of the post -1989 transfor in order to see real change." Th�re was change, but not what mation in easternEurope . the Poles had hoped to see. i Then, Soros introducedSa 4s to leading Moscow circles. Soros brings in Sachs and the speculators In late November 1989, just afterthe opening of the Berlin Conveniently for those circles in the West determined Wall and days before Presiden� Bush was to meet Mikhail to undermine or delay successful industrial development in Gorbachov at the Malta summit� Soros met with Undersecre easternEurope , the two countries in the region with the great tary of State Lawrence Eagleburger to discuss Soros' s strate est debt obligation to western banks and governments-Po gy for Russia. At that time Bhsh was reportedly cautious land and Yugoslavia-were both already members of the about proposing drastic shock therapy for the Soviet Union. InternationalMonetary Fund, and were the firsttwo countries But in August 1990, Soros ass�mbled a team of economists of eastern Europe forced to take the IMP's medicine. Sig including Jeffrey Sachs, form�r senior IMF official David nificantly, the western advisers who prepared the inexperi Finch, and Ed Hewett of the BrQokings Institution (who later enced new governments to impose IMF "shock therapy," became Bush's principal Sovliet affairs adviser). Sachs, were the same in both cases: New York-based financialspec Soros, and the others went to Moscow in September 1990, ulator George Soros introduced a 34-year-old Harvard Uni where they established direct �ontact both with the group versity economics professor, Jeffrey Sachs, to members of around Mikhail Gorbachov, as well as that around the newly the Polish "roundtable" discussions even before the forma elected parliamentary leader oflthe Russian Republic, Boris tion of the coalition governmentof Tadeusz Mazowiecki in Yeltsin. Yeltsin had alreadyesU\,blished himself as an opposi- August 1989. tion to Gorbachov. I Soros gave Sachs a base of operations in Poland by em In June 1991 Yeltsin was lelected President of Russia ploying him in Soros' s Warsaw-based Stefan Batory Founda with 57% of the popular vote, $1d within weeks ofYeltsin's tion. Among those whom Soros and Sachs cultivated was emergence over Gorbachov following the failed August 1991 Leszek Balcerowicz, the man who became shock therapy putsch, President Yeltsin anno.nced in November 1991 his finance minister under Mazowiecki, and virtual economic appointment of an economic team headed by Yegor Gaidar, czar of Poland after 1989. Balcerowicz' s shock therapy pro by then a close collaborator of Jeffrey Sachs. IMF shock gram had been drafted by Sachs, a man whose only previous therapy had also come to Russia, and the way was now clear governmentadvisory experience had been four years earlier, to maximize economic chaos from Warsaw to Moscow to advising the Bolivian governmentof Paz Estenssoro. In Bo Belgrade. 2 livia, Sachs ended hyperinflationby destroying the state in dustry sector, and linking the currencyto the U. S. dollar. 2. George Soros, Underwriting 1)emocracy, MacMillan/Free Press, Sachs even admitted that his program to link the Bolivian New York, 1991. Details on Jeffrey Sachs's Bolivian reforms and the impact currency to the dollar most benefitted the cocaine barons, on the coca cultivation are taken from the book Bolivia: 1952-1986, by whose coca plants were sold in dollars. Sachs described the Jeffrey Sachs and Juan Antonio Morale�, InternationalCenter for Economic Growth, San Francisco, 1988. Details !>n aspects of the White House reac effects of his shock therapy in Bolivia on workers in the tions to German unification can be found in Michael Beschloss and Strobe state tin mine company, Comibol. "Comibol has reduced its Talbott's At the Highest Levels, Little, Brown & Co., Boston, 1993. 18 Feature EIR September 9, 1994 A single mother demonstrating infrontof the Russian government building, the "White House, " in November 1992 . Her sign reads "/ demand an effective decree by Yeltsin on the social protection of single mothers." Her son's reads: "Gentlemen of the White House! We want to live and to have a happy childhood." At the June 1990 Houston economic summit of the heads Bush administration, were adamant on the IMF's prime role of state of the Group of Seven-U.S.A., Britain, France, in eastern Europe after 1989. Italy, Canada, Germany, and Japan-a proposal had been The IMF came out of the negotiationsI between the British advanced by the Bush administration, with the strong back and U.S. governments held at the famous 1944 conference ing of France's Fran�ois Mitterrand and Britain's Margaret in Bretton Woods, New Hampshire. 1jhechief British negoti Thatcher, to put the IMF in control of the entire economic ator was Lord Keynes; his U.S. coun�erpart was U.S. Trea process in the Soviet Union, as it had been since 1989 in sury Undersecretary Harry Dexter White. These two men Poland and Yugoslavia. largely dictated the postwar IMF and World Bank monetary Certain western heads of state were so eager for the IMF order. The resulting institutions, the IMFi , its sister the World role in the U.S.S.R., that they waived IMF membership Bank, and, later, the General Agrdement on Tariffs and requirements, and granted the U.S.S.R. special "associate Trade (GATT), were the product of trong British pressure member" status, which meant they could receive IMF dic on the United States to give Britain a determiningrole in the I tates, but none of the money the IMF holds out as incentive. post World War II economic order, despite Britain's second Jeffrey Sachs, architect of shock therapy together with the rate industrial status. IMF, was coordinating policy in all three countries. From This British influence was confirmed in the fact that, time to time, Sachs sought to maintain his credibility with although a bankrupt, former Great Power by 1944, Britain host governments wary of the harsh IMF dictates, by occa got the United States to agree to give it the second strongest sional criticisms of IMF tactics; but in reality, Sachs's shock voting power on the IMF's board, whichl has remained in therapy was IMF policy. force up to the present day, despite Britain's degeneration The significance of placing the IMF at the center of eco into a has-been industrial nation. It as not until 1993, fol nomic policy changes in Poland, Yugoslavia, and the lowing a bitter contest, that GermanJ and Japan finallygot a U.S.S.R., is not well understood by most people. In fact, it larger voting share on the IMF Exec��ive Board than Britain, was the essence of British geopolitics, the extraordinary ef despite the vast superiority of both cduntries' economies. fort after 1989 to hinder major westernindustrial and techno The British role through the IMf or the U.N. Security logical investment into eastern Europe, in which German Council, is vastly more influential than any formal designa industry would have played a crucial role. tion might indicate. The content 0 IMF policy has been A brief history of the IMF is in order before examining thoroughly shaped by the radical monetarist dogma of Mar- I the results of IMF shock therapy for the former Warsaw Pact. garet Thatcher and her key financial advisers, such as Sir When the true nature of the IMF is known, it becomes clear Alan Walters, who has been a seni r official at the World why Thatcher and leading Kissingerian elements around the Bank. EIR September 9, 1994 Feature 19 The IMF and the agenda of Thatcherism But it is also notable that thelman who has direct responsi Thatcher's economic policies were an updated version of bility for the IMF' s European D�partment,which oversees all late eighteenth-century British "economist" Adam Smith, easternEuropean IMF policy, � also a Thatcher monetarist, with his "invisible hand" of the marketplace, often termed John Odling-Smee, who spe years in Thatcher's U.K. radical "free market" policies. As prime minister from 1979- Treasury before coming to the1 !IMF in 1990. Odling-Smee, 90, Mrs. Thatcher pursued a fanatical economic dogma pro like Britain's Lord David Ow�n, is a graduate of the elite moted by a secret elite group, the Mont Pelerin Society, Cambridge University. whose president was U. S. free market economist Milton Friedman. Thatcher adviser Karl Brunner was a leading Who stands behind the member of the Mont Pelerin club of radical free market econ Behind the IMF are the poI�F?erfUI financial global banks omists. of the City of London and Ne York, and speculators such Friedman's influence in the United States led to the de as George Soros of Quantum tund, and Jeffrey Sachs. For structive domestic economic policies of deregulation and the Ibero-American debtor countries, the 1980s were an un laissez fa ire during the 1980s, which contributed to "junk mitigated hell of IMF-impose� austerity. The IMF recipe bonds," corporatebankrupt cies, soaring unemployment, and was always to demand that al debtor country cut imports a tripling of the U.S. government's deficit, up to $4 trillion dramatically to bring a "balande of payments equilibrium." by the time Bush leftoffice in 1993. No matter that imports of mac�ine tools and other industrial In Britain, the only sector of the economy enjoying sub technology was vital for the d velopment of the economic stantial growth during the 12 years under Thatcher was the growth of the country, which ctpuld have enabled it to repay financial services sector. Unfortunately for the majority of its debt without sacrifice. Th� goals of the IMF have no British citizens, Thatcherism imposed the most regressive concernfor a healthy, growing atiOnal economy. tax burden on those least able to pay, and contributed to The IMF mandate also inc udes savage cuts in govern industrial decay, as government investmentin long-term in ment spending, and a heavy der aluation of the national cur frastructure projects was ruled out on ideological grounds. rency. The argument is that the victim country must have a The real reason such needed investment was banned, was cheap currency value in order to make exports attractive, to that Mrs. Thatcher's friends in City of London banks and earn hard currency, so it can repay its foreign debt. At the investment houses preferred to reap huge profits in real es same time, the cheap currency, 'a form of "dumping," makes tate, stock, and other speculation. A band of legal and illegal imports from the West prohibit1vely expensive, and ensuring financialpirates was allowed to dictate British economic pri zero long-term economic growth. orities. The history of IMF shock therapy across Africa, Ibero The IMF leadership has always been in the hands of the America and other developing economies is one of the great most rigid Anglo-Saxon monetarists, regardless of nationali est unacknowledged criminal $cts of our era. IMF "condi ty. There is a convention that the Fund's managing director tionalities" in Mexico, Brazil, Argentina, Peru, Venezuela, must be French, usually from the monetarist Bank of France, Algeria, Sudan, Egypt, and elsewhere over the past decade, whose priorities hold a strong French franc above the nation's have created only social mise� and a handful of very rich needs for a growing employment economy. The IMF director people. The aim of the major banks and powerful financial now is former Bank of France chief Michel Camdessus. A interests in the City of LondQn and elsewhere who stand previous Bank of France head, Jacques de Larosiere, also behind the IMF, was to use tij.e IMF threat to force "neo former IMF managing director, is today president of the colonialism" on less powerful ¢conomies around the world, London-based European Bank for Reconstruction and Devel for the benefitof the big banks and corporations of primarily opment. the Anglo-Saxon world. This form of colonialism, they rea The key policy posts within the IMF bureaucracy are also soned, was far cheaper than tij.e nineteenth-century British held by monetarists. Director of IMF economic policy today version, with its costly occupation armies and civil servants. is Michael Mussa, a former student of Milton Friedman at What these powerful Anglo-Saxon financial interests have the University of Chicago and a former university colleague been able to accomplish, using .he IMF as their "policeman," of Thatcher's adviser Karl Brunner. Mussa is a radical mone has been to destroy entire nation-states. tarist who, in several personal interviews with this author, But in recent months, an even more sinister agenda of the expressed no interest whatsoever in the economic well-being IMF debt restructuring process.has emerged. Using the IMF and development of easternEurope . He showed more excite austerity demands, coupled with the threat of IMF credit ment over the technical aspects of financialderivatives specu embargo against any victim country that refuses to bow be lation, and the probability theory behind that, than over the fore Fund conditionalities, the politically powerful banks of fate of the transition in former communist economies. Little London and New York have bej!nable to smash protectionist wonder that the Fund recipe in eastern Europe, Russia, and trade policies of debtor nations, land to force open their econo other transitional economies, has been equally as destructive mies for asset -stripping and other forms of looting on a scale as it has been in the Third World. never dreamed possible, a proc�ss termed "globalization." 20 Feature EIR September 9, 1994 The recent stock market boom in Istanbul, Lima, Mexico • fire "redundant" workers; City, or Kuala Lumpur and other so-called emerging mar • devalue the national currenqy against the dollar, to kets, is an example of this globalization process. Foreign make exports "attractive" in western markets, and maximize investors swooped into a defenseless and deregulated home hard currency earnings, so that fore�gn debt can be serviced. market with large sums of dollars, boosting local stock mar That foreign debt was sacred, more !than human life, even if ket prices artificially, often with the cooperation of friendly it was made unbearable by politic&lly motivated unilateral local news media. They make profits of 60-80% or more in a interest rate hikes by the U. S. FedeIlalReserve . weeks or months. Then, the hot money flees as fast as it But the problem was deeper, and far more ugly. It was came, usually taking the profits with it, at the expense of the not as if Sachs and the Fund were ungrepared for the enormity local or national economy. Or if the investors remain, they of the task of transforming formet communist economies buy up local industry dirt-cheap after IMF-dictated devalua into so-called market economies. lMF specialists and the tions have made them attractive to the foreign predators. leadership knew exactly what they were triggering. They had In sum, there is no nation submitting to IMF conditionali more than 10 years' experience in Ibero-America and Africa ties, which has seen a real per capita improvement of that its doing precisely that. overall standard of living as a result. Had Germany or the The intent of IMF shock therapy from the outset was United States in the nineteenth century followed IMF-type to minimize significant industrial restructuring, especially rules, rather than the nationalist economic policies of suitable modem transportation and communications infra Friedrich List and Henry Carey, they would be today British structure. Instead, shock therapy measures mandating that colonies. domestic prices be adjusted to sometJtingtermed "world mar It can only be termed criminal, given a decade of IMF ket price" were imposed. dictates in Ibero-America and Africa, that the Group of Seven Sachs and the IMF sold their bill of goods on the promise governments decided, aftercommunism collapsed, to insist of "six months' pain, then recoveryialong the right path." In that the Fund play the leading role in the economic recon Russia and the restof the former U,S.S.R., this policy was struction of the nations of eastern Europe and the former aimed at balkanizing the region into!many small, weakclient Soviet Union. What Stalin could not accomplish in four de states, each with its own national �urrency, dependent on cades of bloody terror, the IMF has done in four years in whatever western multinational inv�stors it could attract. In many countries. Yugoslavia, it had the effect of providing an added economic At the time of the opening in the East, the United States and social crisis, around which the ,Serbian communist Slo under Bush and Britain under Thatcher dominated IMF poli bodan Milosevic could justify his brutal seizure and war cy. A third major voting IMF member, Mitterrand's France, against Slovenia, Croatia, and Bospia-Hercegovina. In Po backed the decision to make the IMF economic dictator of land, it ensured misery and chaos �or a country that could eastern Europe and the former Soviet Union. The conse potentially provide a crucial supportlto the industrialtransfor quences have been horrendous, as we shall now indicate. mation of all eastern Europe, in�luding most especially Russia. i Market reforms, when there's no market The entire premise of the IM� in eastern Europe was In the 1980s, Poland, Yugoslavia, and the Soviet Union based on a calculated fraud: that the goal of economic life were quite diverse, with different economic problems and must be to create "free markets," i.e., self-regulating mar potentials. Culturally, Poland and Yugoslavia were much kets, controlled and directed by "world market price." All closer to western Europe, with decades of labor exchange in production in a society would exi�t only for sale, and all the West, as well as a more recent experience with capitalist income comes from such sales; furt�er, the state can do noth forms of property than Russia had. Russia had been under ing to inhibit formation of markets, i or to correctfor external communist rule since 1917, and had been far more isolated shocks which disrupt those market �echanisms. internationally. The industrial requirements of the three were One of the most destructivefall acies of postwareconom also vastly different, despite superficialsimilarities of central ics teaching in universities has beenlthat capitalism's success planning. in the West in creating great wealth was a direct result of Into this situation, entered the arrogant IMF officials, unfettered operations of freemarke� mechanisms. This strain together with Jeffrey Sachs, to dictate economic policy, us of radical monetarism, typifiedby Milton Friedman's "Chi ing the blackmail that IMF approval was a prerequisite for cago School" and the dogma of Ftiedrich von Hayek, the any future western investment. Despite willing submission, co-founders of the Mont Pelerin S�ciety, shaped economic however, almost no western investment has been forthcom thinking during the 1980s. The banI4ruptcy of the major econ ing, other than looting the resources of those three nations. omies in the English-speaking wo�ld in the 1980s, a direct In each case, the IMF demand was the same: result of such free market policies,: should have served as a • massively cut state budget outlays, by eliminating sub strong warningto the nations of ea�ernEurope . sidies to the economy, whether for bread or coal, then, privat "Markets" do not exist free in sdme primordial nature, as ize state industry; self-evident entities. Markets are : entirely the product of EIR September 9, 1994 Feature 21 man's efforts to regulatehis economic life. Just as there never experience of Germany and the pnited States to modernize was Marx's utopian world socialism in the Warsaw Pact, its economy beginning the 1870�. therehas never been a"world market price" for any specific Even in Britain, site of the rst Industrial Revolution, goods or commodities, except, roughly, for crude oil, and economic progress was based on ecades of trial and errorin that, because it is under iron-tight control by the multination which regulation and market dev � loped in parallel, beginning al oil cartel. To a lesser extent, there is a world grain price, about the time of the 1601 Poor 4aw, as well as various anti controlled on international markets by a cartel led by four enclosure land policies of the tudor and Stuart rulers to giant U. S.-based trading companies: Cargill, Archer Daniels protect the peasantryfrom mass starvation. It took two centu Midland, Continental Grain and CooAgra. Thus, when the ries, in which land and money wetefirst organized, before the IMF tells Moscow to price its oil at "free market" world organi�ation of labor to the industpalization processbegan on prices, this is an utter fraud. In reality, there exist tens if not a large scale, with the 1795 pass�ge of the so-called Speen hundreds of thousands of local, regional, and occasionally hamland Law . That law was int�nded to assure a minimum international "market prices" for goods, depending on the living standard to all wage laborers, based on the price of specific buyer and seller. bread, and other laws easing p¢sh feudal restrictions on No advanced industrial economy on Earthhas succeeded labor mobility. Poland and the foher Warsaw Pact countries in creating a stable, healthy, growing economy by applying were being told by JeffreySa chs land the IMF to do the same such freemarket dictates as demanded by the IMP for Russia in six months. i and eastern Europe. The emergence of the United States in The record of economic resu'ts since imposition of IMP the nineteenth century as an industrial giant was directly shock therapy speaks for itself. the cases of Poland, Yugo tied to application of dirigist state policies under President slavia (until outbreak of war) , �d Russia, illustrate the un Abraham Lincoln and his economic strategist Henry Carey, speakable damage done over the �t four years. who was trained in the American System of political-econo my established under U. S. Treasury Secretary Alexander Poland: The first shock vi im Hamilton, founder of the First National Bank of the United At the end of October 198"h Poland became the first States. Germany transformed itself into the technological eastern European country to adopt IMF shock therapy, with leader of the industrial world by the end of the nineteenth the measures going into effect if! January 1990. Under the century based on application of the economic nationalism of government's "Program of S�bilization and Systematic Friedrich List. And Meiji Japan borrowed from the relevant Changes," measures put forward �y Finance Minister Leszek Balcerowicz included i • punitive taxes on wage inqreases; • an end to worker bonuses; I • accelerated tax payments; I • sharp cuts in state subsidiejsto reduce the state budget deficit; • removalof state price contjrols; • cutting credit to state entetjprises; and, • a radical devaluation of Hie zloty, to allow Poland to earnmore hard currency by dum�ing its goods onto western markets. ! Balcerowicz was advised by jthe Fund and Jeffrey Sachs on his economic policy, and the �ntire focus was allegedly to reduce the severe inflation, and iJtcreasethe role of what the Fund called "market forces." NJt all of the elements of the Balcerowicz plan were harmful t� the economy. Many, such as selective ending of subsidies, �ancellation of central quo tas for enterprises, and a proh"ition of government bor rowing from the Central Bank a. zero interest to cover defi cits, would be desirable unde� any intelligent economic program. But this was not the co� of Sachs's shock therapy. The bulk of the Sachs-Balce�wicz plan was a disaster. Initially, under a program to kill inflation, Poland experi enced hyperinflation, much as R4ssia did afterJanuary 1992. The hyperinflation resulted partly from a state budget deficit financedby new unbacked money , but mainly from the free ing of prices to "market" level�, and elimination of state 22 Feature : EIR September 9, 1994 budget subsidies. By January 1990, inflation reached 80% In 1993, a United Nations Inten)ational Children's Pund per month. But beginning 1990, the anti-inflation program (Unicef) report on Polish living copditions reported that at was suppressing the real physical-economy of the nation. least 20% of children in W arsaw �ere going hungry, that Within one month in early 1990, production fell by 31%, 50% of families with three or more IChildren were below the trade by over 50%, real wages by 30%, and prices rose by poverty line. One-quarter of all families in 1992 had applied 80%. The government imposed loan interest rates of 38% for welfare . And by late 1993, more than 8 million out of 38 per month, while wages were allowed to rise only 0.3% per million were forced to live by a me�ger state pension. month, and the convertible zloty was allowed to fall to 9,500 Incomes for state enterprises were cut by the IMP-dic zlotys per dollar. tated policy, investment levels were driven below what was Industrial firms had no capital for wages or machinery; needed to replace outmoded or worn-out equipment. The trading firms, no money to financeinventor ies; and individu budget collapsed, as firms were generating no profit, and the al consumers had no money to buy goods. State enterprises budget deficit began to explode. Pensions were in danger, reacted by cutting production, as inventories of unsold prod and ability of communes to invest in anything was almost ucts piled up, households reduced spending, farmers were nil. Poles were getting their welcbme to the free market unable to sell their milk, meat, wheat, and vegetables. The economy. first 500,000 unemployed workers appeared in the early The lack of social protest was d1l1eto a general confusion months of 1990. as to whom to blame for the misery1 Because it was govern But the IMP and Sachs were quite happy with the initial ment policy, and there were no clear targets of blame, the results. They expected it, as their goal was not improvement misery was blamed on "market fotces," or Adam Smith's of production and living standards, but the development of "invisible hand." By the end of 199[1 , Polish unemployment what they called a Polish equilibrium in its foreign balance had reached a staggering level of 2 $illion. IMP shock thera of payments, and only secondarily, to achieve internal"equi py was working. The governmentdefended itself by arguing librium." it had signed "Letters of Intent" wiith the Pund which man Domestic "equilibrium" was reached, as production dras dated the strict austerity measures. What Poland got in return tically decreased to match demand, which had decreased was social misery, collapsing production, organized crime, even more. The forced export of food to the U.S.S.R. ended a black market economy, and a de�ased population. Polish in increasing domestic available supply. At firstpeople react voters signalled their clear revolt against shock therapy in ed favorably, expecting it was a short-term sacrifice on the January 1991 during the elections! in which Lech Walesa way to capitalist free market paradise. Pood appeared in the became President, and the IMP andiU.S. Embassy delivered shops, albeit at far higher, uncontrolled prices. People drew open threats to the Polish governQlent, to force it to keep on their savings to live through the first months of shock Balcerowicz and the IMP shock therapy program. They were therapy, clearly expecting dramatic economic improvement told if they did not retain Balcerowifz, all western assistance at any moment, as Balcerowicz and other government offi to Poland would cease. Balcerowic ElK September 9, 1994 Peature 23 the 1980s, production of Polish hard coal remained at slightly overemploy labor-intensivity oniprivatefarms , with an aver more than 190 million tons per year. Then, in the first daysof age of 25 persons per 1 ()()hect ares, compared with 6 per 1 ()() the IMP shock therapy, the Polish governmentwas pressured hectares in West Germany. All unemployment grew, this into an agreement with the World Bank on the following over-concentration of labor on the farms had no place to go, points: further aggravating the income �ressures on farm families. • Domestic industrial prices for coal energy would be But this was only part of the absurdity of the Sachs IMF raised to world market price as observed in the OECD indus policy. trial economies by the end of 1990; In August 1989, the government eliminated state pur • Coal energy prices for households must reach 50% of chase guarantees to farmers, and lifted state price controls. that for industry by end of 1990, and 100% by end of 1991; At the same time, the state began to free most retail food • Overall domestic coal prices must be "progressively" prices in state shops, while dr�tica1ly cutting state subsid liberalized so that they would rise to world levels by end of ies for same. Before , the subsidies had kept food costs for 1992. the Polish population relatively Istable. The consequence of Compare this rapid shock with the decades-long process freeing prices and cutting state subsidies was a predictable of phasing out coal mining in Germany, France, or other increase of overall inflation in �e domestic economy. By western European countries. The first Balcerowicz budget October 1989 the monthly inflationrate began to reachexplo for 1990 under the IMF allowed no guaranteed credit for the sive levels. The average cost of living increased for 1989 Polish energy sector. The hope was that with price reform, by 251%, and another 586% in i199O. The government was the coal industry would be able to raise the funds it so urgently aghast, but Sachs and the IMF insisted this was merely"cor needed for investment and modernizationof production. In rective inflation." By 1991 the tempo declined to "only" 70% stead, coal production began falling drastically as industry annual food cost inflation, and I was still rising by 46% in was unable to pay the enormous price increases. 1992. But the early actions had biiggeredthe veryhyperinfla Coal was subordinated to the supreme goal under the tion for which Sachs thenclaimed his shock therapy was the IMF program of "macroeconomic reform" and combatting only cure. In short, Sachs's poItcies created the problem in inflation, reminiscent of subordination to the supreme goal the first'place. under communism of "fulfillingthe Five Year Plan output. " Moreover, these price radioalization measures did not The IMF and World Bank program explicitly called for improve agriculture. Beginning January 1990, all prices "reshaping" Poland's energy balance by sharply reducing throughout the economy were liberalized under shock thera dependence on its high-quality, abundant coal, in favor of py. Rent costs, including heat anelelectricity , rose an average increasing the share of oil and gas (both of which must be 773% in 1990, and another 131% in 1991. This meant that imported). The results have been predictably disastrous for ordinary households were forced to cut back on food in order the Polish economy, and a major contributing factor to the to survive. Pensioners on fixedincomes were the worst off, economic depression which has accompanied shock therapy. as their relative share of income earmarked for rent, heat, From a peak production of 190 million tons of hard coal in and electricity, increased 44% from January 1990. Milk con 1988, Poland dropped to 178 million tons in 1989, when the sumption fell 14% between 1988 and 1991, sugarby 27%, five-day work week was introduced to quell worker unrest. and eggs by 21%. By the end of 1990, production had dropped to 148 million But when Poland's borders iwere opened, and foreign tons. By 1992, domestic hard coal output had fallen to 132 trade liberalized under IMF reform and "currency stabiliza million tons, a drop of more than 30% from the peak output. tion" after 1990, for the first time large volumes of foreign The World Bank plan adopted by Balcerowicz in 1990 agriculture products began to b� available (the amount im called for Poland to move from being a major coal exporter, ported doubled from 1990-91), oftencosting much less than to becoming a coal importer beginning the next decade. This domestic products, further ag�ating economic pressures. could be to the net benefit of Poland's international export The share of domestic farm prod�cts sold to the state declined rivals, British-owned mining companies such as Rio Tinto from 67% of the total in 1989 tell below 48% by 1991. The Zinc and certain U.S. coal exporters. Otherwise, it makes share sold in direct sales to the consumer by farmers to 34% absolutely no sense. by 1991, most of it naturally outside the new state value But for Polish agriculture, for decades the center of eco added tax (VA T) system, furthet reducing state budget rev nomic debate, the results of the Sachs shock therapy were enues. even more devastating. Little known outside Poland is the Farmers were also hit with wellrse termsof trade under the fact that Balcerowicz and Sachs had introduced price shocks shock therapy, squeezed by prioe hikes for necessary farm into Polish agriculture beginning July 1989, when the gov inputs such as machinery, fertilizer, feed, and pesticides as ernmentintroduced "market mechanisms." This was purely state-subsidized prices were rembved in 1990. Costs for in monetary, with no accompanying measures to ensure reform puts increased an impressive 41,273% between 1988 and of the deliberately inefficient, tiny land-holdings, or the fact 1991. But the farmers' sale price in the same period rose an that under the old regime Polish families were forced to average of 1,639%. By 1990 thi$ had already been a loss of 24 Feature EIR September 9, 1994 50% in terms of trade . According to official Polish govern Churchill termed this region the "soft underbelly" of Europe. ment statistics, in 1990, some 42% of all private farmers had The fact that two British oligarch!!, Lord Peter Carrington income "under the social existence minimum," double the followed by Lord David Owen, have been the European level of a decade earlier. Community "mediators" in the Balkans since 1991, attests Farmers were also unable to buy tractors . Overall, farmer to British geopolitical interest. It is a matter public record investment outlays fell from 1988 to 1990 by 40%, and anoth that Lord Owen and the British government have openly er 43% in 1991. Fertilizer use fell by 46% from 1988 to backed Serbian conquest and covered over the "ethnic cleans 1991, pesticide use by 75%, and high-protein animal feed ing" genocide as part of their broader geopolitical aim of purchases by 63%. destabilizing German and continej:ltal European economic In commenting on the results of his shock therapy in ties with Yugoslavia, one of the key economies in the south Poland, Jeffrey Sachs, at an economic forum in Switzerland eastern region of Europe, with th� most potential to effect in 1992, told this author, "Look, for the first time you find dramatic industrial transformation.I France under Mitterrand food in the shops in Poland as a result of the reforms; you can formed a de facto new "Entente Cordiale" with Britain find caviar, salmon." But these are imported, and only a tiny around Balkans policy, which has served to prevent a just handful of the population can afford them. The vast majority resolution of that war to date. of people can only window shop.3 Despite conflicts on many other issues, Mitterrand has For all this sacrifice on IMF orders since 1989, Poland backed every crucial policy issue ntom the British side in the has not been the beneficiary of significant net new foreign Balkans, echoing the post- 1904 "Entente Cordiale" alliance direct investment, but only short-term speculative "hot mon of England with France against Germany. ey" flowing into and again out of the new Warsaw Stock On Jan. 1, 1990 the Belgrade government of Ante Mar Exchange. Beginning in 1993, various western economists kovic, under IMF pressure, adopted the shock therapy pro have been touting a slow, but clear, recovery of production gram. Wages and prices were froze ..for six months to combat in Poland as proof that the country's shock therapy has been runaway inflation, then at an annual rate of 1,240%. Govern successful . Nothing could be further from the truth. A recov ment price controls on electricity, qoal for power generation, ery of 2% from the dramatic collapse in output caused by iron, and steel were all removed. Money supply to the econo Sachs and the IMF, even if it were accurate, would not be a my for the first six months of 1990 was drastically reduced recovery. But, as anyone who has spoken with Polish govern and interest rates soared. All this was an IMF precondition ment economists can attest, official Polish economic data are for negotiations with western creditors on rescheduling Yu even less reliable than under communist central planning. goslavia's hard currency foreign debt. Unlike Poland, the Little wonder that in the September 1993 national elec Yugoslavian government made strenuous efforts after the tions, Polish voters ousted the pro-IMF regime of Prime debt crisis of the early 1980s to bQth service its debt and to Minister Hanna Suchocka, and voted in a coalition of parties reduce overall debt. By 1990, foreign hard currencydebt had with ties to the former communists. But the tragedy is that, fallen to $17.8 billion from a pe� of $22.5 billion in 1987, as of this writing, the new government of Prime Minister a sum that, even so, equaled the country's entire 1989 export Pawlak has knuckled under to IMF pressures, and has not of goods and services. The Markovic government's program made an open break with IMF shock therapy. was shaped by economic adviser Jeffrey Sachs, modeled on his Bolivian program described ¢arlier. In May 1988 the Yugoslavia: IMF shock therapy triggers war government began with partial freeing of agricultural prices, The same day that shock therapy was implemented in as Poland had done. Then, on De¢. 18, 1989, the Yugoslav Poland, Jan. 1, 1990, it was also adopted by the government Central Government Council and: Parliament approved the of Yugoslavia. The economic effects of the ensuing chaos full Sachs shock therapy program to begin that coming Janu and hyperinflationwere a major contributing factor in driving ary . That program called for: the Serbian Slobodan Milosevic to a military "solution," with • full dinar convertibility an4 pegging the dinar to the prompting by British and other westerngovernmen ts, not the German mark; least being George Bush's Secretary of State James Baker • rigid monetary control of c�dit into the economy; and his Kissingerian undersecretary Lawrence Eagleburger. • reduction of the state budget deficit to zero via new War in the Balkans has been a favorite British geopoliti taxes and elimination of subsidies; cal trigger to destabilize Central Europe since 1910. Winston • free floating of almost all prices after a brief freeze of prices to dampen inflation; • freezing of wages at November 1989 levels; 3. International Atomic Energy Agency, Energy Policies: Poland, Par is, 1991. Elske Mohr, "Landwirtschaft in Polen: Trotz groan Privatsektors • currency reform making 19,000 old dinars equal to Verlierer im Reformprozea," in IFO Schnelldienst No. 4, 1993 , Munich. one "convertible" dinar, with seven new dinar equal to 1 Economic Commission for Europe, Economic Survey of Europe in 1993- deutschemark. 1994, Geneva, 1994; and, E. Czarny, "Die Auswirkungen des wirtschaf tlichen Umbaus auf den Lebensstandard in Polen 1990- 1991," in Osteuropa A cornerstoneof Sachs's "anti�inflation"strategy for Yu Wirtschaft No. 3, September 1992. goslavia was, as in Bolivia, to fOl,tce interest rates above the EIR September 9, 1994 Feature 25 existing rate of inflation, 59% per month in December 1989. from Moscow. Short-term debt lalone grew by $6.5 billion But the effect of this, combined with the wage freeze, was that year, taking the total Soviet foreign debt to $54 billion predictably a social catastrophe. State enterprises depended in 1989. At this time, Germanyi, through the state Hermes on state credits to pay their employees. With frozen prices, credit guarantee agency and other channels, began to funnel this spelled bankruptcy to many firms. In the firstmonths of an estimated $8.2 billion to the c�ntral Moscow government 1990, under IMF shock therapy, the inflationrate did decline in the context of the negotiation$ around German unity. By from a peak annual rate of 1 ,240% in 1989 to "only" 660% 1990, U.S.S.R. hard currency debt was estimated at $60 for 1990. billion, but reporting as well as idebt servicing beganto go But the cost was a dramatic increase in unemployment, into chaos, along with the econotny. as firmswere forced to lay off workers, and even close down. Foreignhard currencydebt totaled $67 billion by the end The important textile industry was devastated, and cheaper of 1991, when the old arrangements under the Council for imports caused additional market losses. The pharmaceuti Mutual Economic Assistance, 'or Comecon, finally col cal, agriculture, chemicals, and other industries were in deep lapsed, along with Gorbachov's regimeand the Soviet Union depression by mid-1990. By September, national industrial itself. Capital flight out of Russi� reached epidemic propor output had fallen 12% compared with the previous year. And tions, according to best western lestimates. In 1991, Russia for the year 1990 as a whole, production was down 11%. In became a full member of the IMF, and, within minutes of 1991 came an added 20% collapse in output. Wages and Yeltsin's forming a new Russian government in November salaries, after adjustment for inflation, dropped by 22% in 1991, the government was in intense cooperation with the 1990 and another 13% in 1991. Business investment with Fund and Professor Sachs. By JUGe 1992, the IMF calculated astronomical credit costs fell 18% in 1990 and another 30% that Russia and the former Soviet states had accumulated in 1991. arrears on their foreign debt of 1$9.4 billion, the first time The IMF shock therapy was not the only cause of the in postwar history that MoscoJ had defaulted on western war launched from Belgrade against Slovenia, Croatia, and obligations. Bosnia in the summer of 1991. Although that is a subject for On Jan. 2, 1992, the new �conomic team of Russian another setting, let me say here that it provided the suitable PresidentBo ris Yeltsin, under then-Finance Minister Yegor context of exploding economic crisis and depression, which Gaidar, announced price decontI"d1and other steps purported encouraged the citizens of Slovenia and Croatia to vote in ly intended to revitalize the collapsing Russian economy. non-communist governments for those parts of Yugoslavia The very next day, Russia fonnally applied for full IMF in April 1990, proposing a loose federation structure of the membership, Gaidar having the impression that were Russia various parts of Yugoslavia, in opposition to the Serbian to take the initial painful medicipe, a promised $24 billion communist government. Fromthat point on, it was a matter from the G-7 countries would begin to flow into Russia's of devolution of developments until Milosevic launched his economy; that never happened. , military solution on July 6, 1991.4 The Fund program for Russi� was also designed by Jef frey Sachs. That Jan. 2, 1992, the Russian government re Russia and the CIS: Sachs's friends loot versed more than 60 years of state price controls and began The Soviet leadership had refrained from the 1970s until to liftprice controls on 90% of consumer goods and 80% of the mid- 1980s from taking on large western debt burdens, industrial goods, allowing "free tnarkets" to decide the new unlike many governments of eastern Europe . But that began price levels. For the rest, prices rose immediately by some to change as the collapse of the Warsaw Pact system drew 350%, by state fiat. By the end oManuary, overall consumer nearer. The 1986 oil price collapse in the West and the Cher price inflation had increased 500%. Simultaneously, the in nobyl nuclear accident both hit the Soviet Union with a devas come levels of the broad population were effectively frozen, tating blow, when the U.S.S.R. had a total westernindebted resulting in a collapse of living ! standards unlike anything ness of $30.7 billion-a manageable sum for the large since 1917. economy, especially given its gold reserves and its ability Under orders from the IMF and Sachs, to attack this state to earn hard currency revenue from oil and gas and other created inflation (output of goods lin industrydid not increase exports. 500% at the same time), the State Central Bank stopped By 1988 the figurehad climbed to $42 billion. But, begin printing money. This meant prices on goods soared, while ning April 1989, all controls were liftedand local enterprises the money supply in circulation cdntracted.The CentralBa nk were free to take on western debt, often with no oversight in the firstquarter of 1992 increased its interest rates to local (state-owned) banks from 2% in 'ate 1991, up to more than 4. Jacqueline Heinz, Jugoslawien Liinderanalysen. July 1990, Frank 80% by April 1992, and remo� interest restrictions on furter Allgemeine Zeitung Informations Dienste. Srecko Jurdana, et aI . The member banks altogether, meading new ruble credits for War Against Croatia: A Chronology of the Aggression. Croatian Information investing in rebuilding industry "1ere impossible to pay. Service, Zagreb , March 1992 . Hubert Gabrisch, et aI . Transformationskrise setzt sichfort. June 1992 , Wiener Institut fiir Intemationale Wirtschaftsver Next, on Jan. 29, 1992, Gaid¥ and Yeltsin issued Presi gleiche. dential Decree No. 65 which saidJ "Everyonehas the right to 26 Feature EIR September 9, 1994 trade anywhere in whatever they wish." In short, unbridled The other crucial sector of the Rjlssianeconomy , energy, free market chaos was also unleashed, in the name of "eco has suffered similar consequences underIMF shock therapy . nomic reform." At the same time, Gaidarintroduced liberal Domestic oil prices increased between December 1991 and ization of foreign exchange and foreign trade , allowing local the first weeks of 1993 by 8,467%) Oil production has also producers to import and export at will, with the exception of plunged. In 1988, Soviet oil output passed the level of 624 oil and gas. Gaidar's program called for all export prices, million tons, or more than 12 million barrels perday , its all including oil and gas, to rise to world market price levels by time peak, and the highest of any nation in the world. By the end of 1993. April 1994, Deputy Fuel and Energy Minister Anatoli Shata To a desperate Russian popUlation, the slogans ofSachs 's lov announced estimates that total �utput in 1994 for Russia IMF shock therapy promised a miracle cure. The IMF and would fall to 319 million tons from �50 million tons in 1993. the G-7, led by the Bush administration, held out the carrot He cited the financial crisis as forcing wells to close for lack of $24 billion in western credits as soon as Russia agreed to of paying customers, as well as lack of investment for repair formalize its shock reform by signing the Fund's letter of and expansion of production to new areas, and acute oil intent. In April 1993, the size of the promised western aid industry equipment shortages. Mor!! than 70% of Russian oil "carrot" was increased to $43 billion, even though almost no equipment had been produced in Azerbaijan before 1990, monies had gone into Russia. which was now in a war zone and �onomic chaos. Since the Yeltsin government foolishly agreed to go One critical area affected by the!IMF shock therapy focus along with the IMF shock therapy , what happened was pre on strict monetary change, price adjllstment,and state budget dictably tragic. The so-called shock therapy reforms were the austerity, has been the large nuclejlf power industry. Since boldest attempt in history to restructure an entire national the 1986 Chernobyl accident, and indeed after the collapse economy in one fell swoop. But by December 1992, the of the Soviet Union three years ag<), G-7 governments were economy was in shambles, and hyperinflation was threaten demanding that all nuclear plants i� the former Soviet Union ing, as the Congress of People's Deputies finally forced Yelt be closed immediately for safety r�asons. But the West was sin to dump Gaidar, though not the reform. not prepared to provide an altematlve source of energy. Ac Nowhere were the negative effects of IMF shock therapy cording to experienced western european nuclear experts so evident as in agriculture and food production. According with detailed on-site knowledge of the Russian reactor de to recent estimates by the U.S. Department of Agriculture , signs, this was not only foolish, bul generally unnecessary. which has had significantadvisory exchange with Russia and The Soviets developed two different reactor types. One, perhaps the world's best data on Russian agriculture, per a water-cooled, graphite-moderatttd design, called RBMK capita consumption of essential food items in the average series, is the Chernobyl type. Thil> type does not presently Russian diet has plunged. While potato consumption has exist in the West, and was clearly i developed because of its increased dramatically, consumption of meat and other es dual-use ability to provide electric(ty for power and plutoni sential protein sources has plunged, as price liberalization um for weapons. As of 1991, there were 16 RBMK reactor under IMF dictates caused price rises to unpayable levels, units in operation, mostly in Russi\aand Ukraine, providing threatening severe malnutrition and disease. Total meat con 16.5 gigawatts electric (GWe). This is roughly equivalent to sumption fell 29% from 75 kilograms per capita in 1989 to providing all electricity requirements of two urban metropo only 53 kg in 1993. Egg consumption fell 21 %, dairy prod lises the size of New York City, 011for 16 million people. ucts by 29%, fish by 43%. Further, official statistics have In addition to the RBMK series, the former Soviet Union inflatedeven these numbers as the governmentbegan to count in 1991 had 24 VVER pressurizedwater reactors, not entirely lard and animal bones as "meat," in an effort to conceal the unlike the Westinghouse design eJ¢tensively used in western severity of the declines. Europe, especially France, and in the United States. Here the As in Poland, even the giant Russian collective farms capacity is nearly 20 GWe, or enoJgh for 20 million persons. were unable to pay for fertilizers. Despite the fact that since The safety features on the VVER reactors have in many 1972 Russia has been the major producer of mineral fertiliz cases been modified, in some in$tances by Moscow after ers in the world, per hectare application of fertilizer dropped Chernobyl, to calm public anxiety j or are readily modifiable. between 1988 and 1993 by 71 %, from 113 kg per hectare to According to impartial western ex.perts, the VVER design 35 kg per hectare. Shortages of diesel and gasoline for fuel features are in many ways superior to the Westinghouse de ing tractors and other equipment have had significanteffects sign, and represent a manageable problem for safety. The on productivity, and farms have been unable to buy new RBMK design is also controllable in terms of avoiding a machinery, as prices have climbed between 19 and 35 times second Chernobyl-type accident. ! over the past two years . Farm equipment production has But the IMF denies the importlmce of nuclear energy for dropped 60% between 1992 and 1993. Tractor prices have Russia and the other repUblics. By permitting the radical gone from 12,000 rubles in 1988 to 13 million rubles in price shocks to collapse oil, coal. and other conventional 1993, a thousandfold rise. Between 1986 and 1993, tractor energy sources, forcing non-nuclflMpower plants to operate deliveries to Russian farms fell 67%. years beyond their replacement ilife, the Fund is putting EIR September 9, 1994 Feature 27 FIGURE 1 FIGURE 2 Total Soviet long- and short-term foreign dept Russian industrial prod�ction plummeted ballooned, 1985-91 (change fromprevious year, 1989 = 100j (billions $) 7.0 100 6.0 80 5.0 60 4.0 3.0 40 2.0 20 1.0 o 4-----�----�----�----r_----r_--�o ;------.------Tr------.------� 1985 1986 1987 1988 1989 1990 1991 1989 1992 1993 Source: EIRNS, World Bank Source: EIRNS, Goskomstat stresseson nuclear generation which aremost unwise. While chases. Inter-company debt ofs�te firms, both to one another certain western media prefer to wildly exaggerate the dan and to the Central Bank, went from 40 billion rubles in De gers , there are real engineering and training problems that cember 1991 to 3.2 trillion rubl4:s by July 1992, an 8,000% require professional support from the West. Russia alone increase in some six months. currently has 28 nuclear reactors providing some 20 GWe of Major state enterprises at �t point were forced to rely crucial electric power, with St. Petersburg getting 33% of its on Central Bank printing of rub�s to bail them out, causing electricity from nuclear plants, and Moscow 22%. a general monetary inflation andlcollapsing the ruble's value The IMF also demanded as a precondition to its recom for ordinary purchases, further 4nhancing the frantic efforts mending release of the promised G-7 funds, that the Russian to get hard dollars at any cost. state first dramatically cut its budget deficit. But the Fund In this situation, the possibilities for criminal "mafia" made no provision for ensuring that Russia had a modem groups to loot the resources of 1Ihe country and sell them at functioning economic infrastructure in place beforehand, so below world market prices to unscrupulous western specula that the underlying causes of the budget deficit could dimin tors such as Marc Rich, becamel irresistible. Russian alumi ish along with the deficit, or any alternative "social safety num has been dumped onto �estern markets in recent net" to provide for the families previously employed in state months, collapsing prices in westernEurope by 30% or more. industries, who had also received social benefits as part of So it has gone with oil exports apd other raw materials such their factory employment. On paper, Gaidar cut the state as timber, aggravating an alrea.y dramatic postwar unem budget deficit. The stated goal of zero deficit by April 1992 ployment crisis in western Eurqpe. Here, alleged business was not reached, but the government claimed a state deficit associates of George Soros, inc.uding fugitive Swiss-based of 3 .5% of Gross National Product by April, some 50 billion oil and metals trader Marc Richl and the Israeli arms dealer rubles. Shaul Eisenberg, moved in to reap huge trading profits , buy But sharp cuts in government spending were the only ing from these various local Russian mafias below cost of means to cut the deficit, since company "profits" in a western production prices because they paid in dollars and had the sense were nonexistent, and taxation of income was not suc resources to move the raw materials out of Russia quickly. cessful with falling living standards. The state performed a Had the shift to ballooning bf inter-company debts not bookkeeping trick to try to appease the IMF: It cut state taken place, given the impossible IMF conditions, one-third allocations to industry, and at the same time let state-owned to one-half of all producing en1erprises throughout Russia industries run up huge new inter-enterprise debts (or credits) would have been forced to shut !immediately down and fire to each other. The "state" deficit was merely shifted to be all their employees, creating mas�ive social problems, explo come "enterprise" debts, despite the fact that these enter sion, as the IMF state deficit reStraints allowed no increase prises were state-owned. Companies that suddenly had credit of social security spending for ; mass unemployment. Not cut off by the Central Bank under the Gaidar shock therapy, surprisingly, local company managers and others opted to at refused to pay other enterprises what they owed for pur- least keep employment, howevet inefficient, going. 28 Feature 'EIR September 9, 1994 i tion from a command economy to � market economy. The FIGURE 3 IMF and World Bank give the imprefssion of having the right Steel output of former Comecon* countries, answers. But the outlook of these i stitutions is thoroughly 1987-92 * monetarist. The prime focus of the F is to correct tempo (Million metric tons) � rary imbalances in a country's n4tional balance of pay 250 ments," not to manage the most conitPlex economic national restructuring ever undertaken. 200 Because of the extremely tense spcial situation facing the government by May 1992, Gaidarl et al . decided to relax enforcement of new value-added an income taxes. The state 150 d deficitthen went from 50 billion ruBles in the first quarter to 301 billion rubles by July 1992. By Qecember 1992, combin 100 ing the state budget deficit with xtra-budget" credits to Gaidar's Finance Ministry, and the dvance draw on expect ed January 1993 tax revenues, the a'1 ' tual total state deficitfor 50 1992, the first full year of the IMF hOCk therapy, was 17% of the GNP, or 2.6 trillion rubles, r her than the IMF/Sachs o 4------r-----�------_r------�----� target of 3.5%. By the end of 19i 3, the state deficit was 1987 1988 1989 1990 1991 1992 estimated at 20 trillion rubles, some �O% more than the entire Source: EIRNS . ·Comecon, or the Council for Mutual Economic Assistance (CMEA), was the cornmeroial GNP of Russia. organization for the socialistbloc countrias, until the collapsa ofcommunism. Prices had already risen by We� inflation-style dimen sions. In February 1992, consumer �rice inflation was at the To alleviate this unstable social situation, the Central level of 40-50% annually. Total prife inflation in 1992 was Bank decided to extend "soft credits" to help settle inter an estimated 920% under shock th�rapy. By August 1993, company debts, reducing them to a nominal 1.2 trillion rubles consumer price inflation exceeded • ,250% annually. In this by September 1992; but confidence again eroded and inter situation, the real economy and livin� standards plunged. Real company debts rose, along with inflation, to previous levels wages after inflation fell by an es�ted 50% according to by December 1992. data compiled by the Geneva-based Ek:onomic Commission for Because the Gaidar government's monetary shock recipe Europe . The ECE estimated a pove� level in Russia to have called for severe contraction of money supply, while a 655% included "over 40% of the populatiorl" by the end of 1992. consumer price inflation existed by March 1992, ruble cash The ruble-dollar exchange rate �so collapsed in the last for payment of employee wages was not available, and the quarter of 1992. The government's $uch-publicized "vouch wage arrears for workers began to balloon also. The arrears in ers," or small-share ownership certi$cates in state companies wages exceeded 21 billion rubles, or 8% of the population's issued to the population by the end of 1992, was a thinly monthly income by that April, and rose to 65 billion rubles veiled political attempt by the Ye sin-Gaidar government by July 1, almost one-fifth of nominal (depressed) monthly to calm popular discontent by giving. them an illusion of wages in the entire economy. ownership. The paper vouchers c04ld be traded as a money Faced with credit cutoff by the central government and substitute. i breakdown of supply deliveries, the state-owned companies By May 1994 Russian officialsiwere faced with the im raised their own prices and cut production to meet the crisis. possible choice of continuing with IMF budget austerity and Industrial production in 1992 dropped an official 20%, and anti-inflationmeasur es, and therebyltriggering an unemploy more than 15% in 1993. In May 1994, the Russian Econom ment crisis of between 1 0- 15 millio� unemployed in the com ics Ministry announced that over the first three months of the ing months . Or, if they abandoned the IMF regimen and year, industrial output had another 25% below levels at the printed money to keep factories opeq, a new wave ofhyperin end of 1993. flationwas all but guaranteed. Shoc� therapy has indeed been On top of this is a negative investment in industrial capital proven to be a total failure in Russilt.S goods. In 1992, according to data from the European Com mission for Europe (ECE) , Gross Fixed Investment de creased 45% over the year before . In 1993 it fell another S. International Monetary Fund, et al ' e Economy of the U.S.S.R.: 50%. Summary and Recommendations, Washingt n, D.C., December 1990.An ders Aslund, Jeffrey Sachs, et al. Changing Economic System in Russia, The Harvard computer model of Professor Sachs and the Pinter Publishers Ltd. , London, 1993 . IMF fcasional Paper, "Price liber IMF had no response to this situation, except to demand alization in Russia," Washington, D.C., Ju e 1993. Robert Baker, Shock ! more shocks. Prof. Klaus Laski of the Vienna Institute for Therapy Ravages Russia's Food Production " in Executive Intelligence Re view, Washington, D.C., March 18, 1994. e World Bank, WorldDebt InternationalComparative Economics points out the absurdi Tables: 1992-93, Washington, D.C., Decem r 1992. Nuclear Engineering ty of the demands: "There exists no precedent for the transi- International, 1990-94, London. F, EIR September 9, 1994 Feature 29 �TIillInternational Cornered, Castro tries immigration war by Gretchen Small i August 1994 was not a good month on any front for Cuba's measures against the Castro regfme. By theend of the month, Erich Honecker, Fidel Castro. On Aug. 5, dissent exploded Castro, who had blustered reI>C!atedly that the refugee crisis onto the streets with the firstmass protest against his regime would not end until the Unite� States accepted discussions in decades. With the protesters' chants of "Freedom, free on ending the embargo, agreediinstead to hold talks with the dom" still echoing inside Cuba, Castro also saw his principal United States limited to the imptigration issue. Interviewed foreign policy strategy-to secure a continental power-base on Havana Radio and TV Netwprks on Aug. 25, a defensive through the coming to power of member parties of the Cuban Castro denied he had "wanted l to annoy Clinton," insisting run Sao Paulo Forum in key nations of the Americas--deliv all reports thathis regime has a r'special antagonism" toward ered a potentially deadly blow, with the peaceful completion the Clinton administration we false. of the Mexican presidential elections, in which Sao Paulo The Cuban crisis remains drfnn� atic and dangerous: Castro Forum candidate Cuauhtemoc Cardenas was handed a crush is an entrenched dictator who �ay threaten bloody civil war ing defeat. ifhe doesn't get his way; and so�e sources reportthat George Castro's response was to attempt a replay of the 1980 Bush's friends would also like ito see such a civil warerupt Mariel immigration crisis. On Aug. 5, Castro began encour in Cuba. But if the U.S. Presiflent stands his ground as he aging his fellow Cubans to risk their lives at sea on makeshift has so far, and if the United S*es and the nations of lbero boats and rafts, if they hoped for food or freedom. Such America pressure Castro to go �uietly, the world now faces cynical abuse of his fellow Cubans, he expected, would di the joyfulprospect that Cubans lcan free themselves fromthe vert the growing internal pressure on his regime outward, communist prison camp in whi�h they have been trapped for while lobbing a political hand-grenade into U.S. domestic some 35 years. I politics, destabilizing the Clinton administration, among oth In an Aug. 25 campaign s�tement, American statesman er things by building up the campaign of Jeb Bush in the Lyndon LaRouche assessed the situation thusly: "Given the upcoming Florida gubernatorial elections, and thus forcing circumstances, President Willi�m Clinton deserves creditfor the Clinton administration to accept negotiations--on the way he has responded to i the latest political stunt by Castro's terms. Cuba's leading Sao Paulo Forurpmember, Fidel Castro. Any But Castro's attempt to judo his crisis into a crisis for different response would have played into the hands of for Clinton, did not succeed-much to the chagrin of the British mer President George Bush an" Bush's partners in the Hol and their allies in the Bush crowd, who have been casting linger Corp. efforts to destabili2jethe governmentof the Unit- about desperately for some way or other to bring down the ed States. I Clinton presidency. But Clinton "dodged the bullet," in the "Now, Fidel Castro must sqe clearly that his latest game words of Jeb Bush's frustrated campaign adviser, and instead has failed. If he were wise, hi� next message to the Clinton ordered measures to stop the flowof refugees, and tightened administration would be a requ�st for cooperation in arrang- 30 International EIR September 9, 1994 ing for his own orderly departure from Cuba, quietly but Dominican Republic by the Project Democracy apparatus in surely abandoning his connections to any further attempts at the State Department after the M� presidential elections fomenting a South America "Hullabalula" by the forces and there. But unlike the Dominican R�public, when Cardenas super-wealthy backers of the leftistSao Paulo Forum." cried fraud, he found himself alone. I Some people see similar signifi�ance in the fact that one Breaking the Sao Paulo Forum game of the foreign advisers to Lula' s leading opponent, Fernando EIR has warned since 1992 of the danger represented by Henrique Cardoso, is reportedly U.$. Democrat James Car the Sao Paulo Forum, the continental movement of narco ville, a top adviser to Clinton's 199� presidential campaign. terrorist armies and political parties the Cuban Communist Party founded in 1990 after the collapse of the Berlin Wall. 'Freedom, freedom!' I Exactly one year ago, in our Sept. 13, 1993 issue, EIR ex Whether the protesters who po,red on to the streets of posed what no other U.S. English-speaking press dared re Havana numbered 5,000, or the 30�000 estimated by some port: that the Sao Paulo Forum had adopted a strategy at its Cuban-Americans, the events of Apg. 5 demonstrated that July conference in Havana to take power in at least six coun the terror of the regime's oppressi� security apparatus has tries in the Americas over the next two years, combining begun to crumble. Faced with mas$ protest, the Cuban au- electoral and terrorist tactics. The electoral targets were thorities were afraid to shoot. I Venezuela (December 1993, with the Causa R party repre Cuban "experts" may screech alJ they want, as the Inter senting the Forum), Mexico (August 1994; Cardenas's Dem American Dialogue's Jorge Domin.uez did, that the protest ocratic Revolutionary Party), and Brazil (October 1994; the of Aug. 5, while admittedly large, was an "isolated incident," Workers Party). but more serious observers remerqber that it was through Later, informed sources in South America told EIR that such "isolated incidents" that thel mass uprisings which Castro was banking, in particular, upon a victory at the polls brought down the communist tyn$nies in eastern Europe by his fellow co-founder of the Sao Paulo Forum, Brazilian began. Workers Party candidate Luis Inacio "Lula" da Silva. If the EasternEurope is much on Cub� minds. Cuban authori Cuban regime secures Brazil as its power base in South ties trace the beginning of the current migration crisis to July America-as a Lula victory would-Castro' s options for 13, when Cuban authorities sank a tugboat carrying Cubans survival change dramatically. fleeing the island, killing half of �se aboard. The r�gime EIR warnedthat what made the Cuban-directed Forum a denounced as "propaganda" the chljrge that the sinking was major strategic threat to the hemisphere, was the support it deliberate, but inside Cuba, many �ompared the atrocity to had received from powerful forces in Washington globally the East German police shooting dcjwn Germansattempting during the Bush presidency, from Bush leftovers within the to fleeover the Berlin Wall. Clinton administration, as well as from sectors of the State Internally, the Catholic Churc� has stepped forward as Department allied with the bankers' think-tank, the Inter one venue for aiding an orderly trans�tion to freedom, without American Dialogue. The Inter-American Dialogue, wbich a descent into bloody civil war. O� Sept. 8, 1993, Cuba's managed to get its president, Richard Feinberg, named to Patron Saint day, the Cuban Catholic Bishops issued a mes head the Latin American desk at the National Security Coun sage to the Cuban state and people,! including those abroad, cil, went so far as to host Castro's Sao Paulo Forum candi calling for liberty, agape, and mor4tl order to be restored in dates in Washington in April 1993, presenting them as the Cuba. One of the sharpest statemeQts ever made public on a standard-bearers of a new democracy in the region. large scale inside the police state, �e bishops insisted that Beginning Causa R party's defeat in the December 1993 change must be achieved through aialogue, but a dialogue elections in Venezuela, however, Castro's Forum option has premised on true liberty, a freeing� f the many unjustly held begun to unravel. The rout of Cardenas in Mexico badly hurt prisoners, an end to the excessive cqntrol of the state security his Brazilian ally, Lula, already failing in the polls. Some bodies, relief from the "tiring repeti�on of slogans" and "om Brazilians now believe Lula could even be defeated in the nipresent official ideology," the rul� of hatred, and a justice firstround of the elections. system premised upon "an eye for lIP eye." What Castro's minions have begun to discover, is that Foreign tourism, monies, and linvestments are not the they no longer enjoy the backing of the U.S. presidency, only answer to Cuba's crisis, they sptted; "everything can be and their power to sow chaos has declined accordingly. The resolved among Cubans," includin� those "whom we have Mexican elections evidenced this shift. Cardenas had de made into foreigners." This, combihed with "a Latin Ameri clared that anything short of his victory at the polls would can integration" to which Cuba, as the other countriesof the be ipso facto proof that the elections were fraudulent. He region, aspires, must be the answer�o "the sad experience of welcomed internationaloversight of the elections, expecting foreign intervention into our natio�al affairs" over the last to be assured of international back-up for his charges of two centuries-including that res�ting from the regime's fraud, along the lines of the destabilization run against the former alliance with the former Sdviet Union. "Poor COUD- EIR September 9, 1994 International 31 tries should join together to overcome their negative depen dency with respect to the rich countries." How commimismfe ll Back to prostitution, gambling, and the IMF The Cuban regime has shown in the past year that it is in Czechoslovakia willing to sacrifice anything, in order to stay in power. In the name of encouraging tourism, legalized gambling has by Dr. JozefMiklosko already returned to the island, with the Cuban government operating a casino in a joint venture with the Italian company Fratelli Cosulich. Cuba's yuppie Foreign Minister Roberto This speech was given in July 1994 by Slovakian mathemati Robaina admitted to the London Sunday Telegraph in May cian Dr. Miklosko, the fo rmer deputypremier of post-com 1993 that Cuban prostitutes "are said to be among the cheap munist Czechoslovakia, befo re the countries separated. Dr. est in the world." He justifiedwomen 's (girls, mostly) resort Miklosko is currently chairmaniof the group Nadacia Spolu to prostitution to answer their "material needs," as similar to patricnost ("We Belong Together"), which co-sponsored, the regime's current policy of maximizing national reve with the Schiller Institute, a seminar with Lyndon and Helga nue-by whatever means possible. LaRouche near Bratislava, Slovakia in August. Dr. Top British and other speculators otherwise feeding off Miklosko's speech has been abridged slightly . the collapse of the former Soviet bloc countries, are already cutting their deals with the Castro regime for looting Cuba. The fall of communism, our fathers' dream for a long time, The fugitive buddy of George Soros, Marc Rich, was reported was given to us by God. Totalitarianism and oppression of negotiating deals to develop Cuba's uranium, lead, zinc , and the mind lasted for 40 years. Forty is a symbolic number. copper deposits back in 1992. The Dutch banking cartel, ING After 40 days of rain, the Floo4l came, and Noah let a dove Bank, another quiet but powerful extension of the British fi fly from the ark. Elijah made his pilgrimage for 40 days to nancial cartel, arranged financing for Cuba's nickel mining Mt. Horeb. Jonah gave the town of Nineveh 40 days in earlier this year. Italy's porn-businessman, Luciano Benet which to carry out a conversio�. Moses was given the Ten ton, opened up operations in Cuba in January 1993, praising Commandments after 40 days offast ing. The Israelites wan Castro in the process for having "inspired entire generations." dered for 40 years through the desert to the promised land. The Castro regime has reportedly applied to rejoin the The countries of the East bloc l�ved for 40 years surrounded International Monetary Fund and the World Bank. IMF offi by the Red Sea of communism, and after wandering in the cials Jacques de Groote and Frank Moss paid a "personal" desert of totalitarianism, they hIoped that the time had come visit to Havana in November 1993. They issued a report to live in the promised land. following the trip noting Havana's "keen interest" in working Nearly fiveyears after the fall of the communist empire, with the IMF, asserting that Cuban policy "changes represent we, the Christians, know that freedom has two faces, that the a clear change of strategy [which] ...will inevitably pick promised land is still far away, and that it will hardly be up momentum." reached without diligence and toil. It is not surprising, then, that these British-centered inter What was it that caused out liberation from totalitarian ests denounced President Clinton's August measures to stop ism? It is nearly forgotten, and unpopular in both East and Castro's gambit as, in the words of a hysterical Aug. 22 West today to do so, but it w�s especially the 40 years of Financial Times editorial, going "precisely in the wrong di prayer, sacrifice, suffering, fa�ing, and pilgrimage of mil rection ....Reformers within the government must be en lions of people that defeated cqrnrnunism. In Czechoslova couraged," by such measures as letting Cuba join the World kia, tens of thousands were put into jail, sentenced to hun Bank and the IMF, they demanded. Similar squawks were dreds of thousands of years in prison. All religious schools, heard from the Inter-American Dialogue, which called a publishing houses, and hospit:als were destroyed. In the press conference in Washington, D.C. on Aug. 26 to demand spring of 1950, in just two nights more than 900nuns were that Clinton change course. "The President has made a strong forced to close, 15,000priests and sisters were put in concen statement, and he will have to reconsider that . . . within the tration camps for years. Nevertheless, the church was there; next few days," Dialogue president Peter Hakim pro it even flourished in those times. The church was well struc nounced. Jorge Dominguez, coordinator of the Dialogue's tured and organized, and did its main work in the under Special Task Force on Cuba, reiterated the Task Force's ground. Children, youth, students, and families regularly adamant position that the U. S. government must not base met in secret assemblies and worked well. A culture existed: any policy upon the ouster of Fidel Castro. Dominguez urged There were samizdat [underground] publishers, and western the U. S. government to instead accept Cuba's application to media and books were smuggled into the country. Hundreds join the IMF and World Bank, as the "most effective" mea of thousands joined in pilgrimages for the Virgin Mary and sure to promote "reform" in Cuba. other religious feasts. 32 International EIR September 9, 1994 High points of the battle for freedom One may mention the following historic events as the tip of the iceberg: the pope's firstvisit to Poland; 200,000people protesting at the celebrations of St. Methodius in Velehrad in 1985; Cardinal Tomasek's call for a petition to accomplish the "Thirty-One Demands for Religious Freedom" on Jan. 4, 1988, which yielded 600,000 signatures; the first so-called candlelight demonstration at Hviezdislav Square in Bratisla va on March 25, 1988, where 10,000 people called for reli gious freedom and human rights, and were brutally attacked, and where the "gentle revolution" against violence really started; the summit meeting of Reagan and Gorbachov on Dec. 8, 1988; the massacre at Tiananmen Square in Beijing; and, of course, the first hole in the "Iron Curtain" on May 2, 1989, when people fled from East Germany, the former German Democratic Republic, to Austria via Hungary. Then came the Finale ju rioso, Nov. 17, 1989 (in Bratislava on Nov. 16), when students started the gentle revolution. The fall of the Iron Curtain can be compared to the decline of the Roman Empire. The enthusiasm about the end of com present collaboration is weak, and the wall between rich munism, though, led to the illusion that there would be rapid and poor again exists. Europe must have a common future, improvements in society, and fast realization of its future otherwise we will have no future atl all. We should listen unity. Suddenly we are free, but oppression is now slipping more closely to the pope's social bncyclicals, than to the in the back door. Many feel no joy about the new possibilit conditionalities and demands of the International Monetary ies, but are impatient, tired, and disappointed. We suffer a Fund, which lead to shock therapy and social unrest. "sovietization" of thinking: that means passivity, pessimism, I no aggressiveness and initiative, and a certain waiting for a Don't forget the church's role strong personality, for orders from above. As in former What is the situation of the church, which suffered so times, today one looks for enemies and culprits. But there is much before the revolution, and for that reason had such nothing to be gained from orienting toward short-term goals enormous authority? It is more difficrltto preserve Christian and simple solutions. ity in a free world. The attacks against the church are carried Every day, we in the East, but also you in the West, out globally, by Freemasons, cults Satanists, and the New should pose some questions to yourself: What does it mean Age movement. In our country, th� church is attacked most to be free? Who made the law and the morality of our life? If of all by old communists, and by pepple who lost their orien man made it, he can change it; but if it comes from God, we tation due to media propaganda. An important subject under don't have a right to do so. discussion concerns the reasons fo� the fall of communism. We were not prepared for the assaults of consumerism, There are many who would like to trike the significant role liberalism, primitive culture, and pornography. Of the 73% of Christianity from that analysis. of Siovakians who are Christians, obviously many are only Christians in East and West have to know that there will formally believers, as the rate of criminality, abortion, and never berest, thatwe have to fight for each individual soul and divorce proves. It is absurd and dangerous that we have for freedom, again and again. The old sins which have kept businesses without morals, privatization with corruption, coming back since the time of the Apostles-namely, to have and the desire of success at all costs, without respect for been sleeping during Christ's most dF"ficult hours-should not ethical norms. In politics, we again are seeing too many be repeated. The church cannot exist without the cross. God negative human qualities, such as hatred, the demand for doesn't have hands except ours. Christians are irreplaceable in revenge, defamation, and the humiliation of others. The their efforts for love, peace, family, life, and culture. transformation of the economy involves many social prob After the five years since the end of communism, I'm still lems. Some people are in difficulty, many are afraid again, optimistic. Today, the Slovak chu ch has 2,000 students of 40% of families are living below the minimum standards. theology, many new nuns, and more and more people who The real danger exists, that in Slovakia-as in Poland and are working for their fellow man. 1s before, this year half a Hungary-a leftist government will come to power again million pilgrims came to Levoca. ¥other Teresa once said: after the elections at the end of September. "We should pray as if everything depended on God, and we Europe and the world had a tremendous chance in 1989 should work as if everything depended on man." That should to unite East and West. That chance was thrown away. The be our aim for the future, in East add West. EIR September 9, 1994 International 33 Interview: Roberto Formigoni 'We are now in a new phase of Italianpo liticalli fe' Roberto Formigoni ,for many years chairman of Communion between an extreme left wing and an extremeright wing. and Liberation, the biggest Catholic youth organization in Europe, and currently a member of the new Italian Parlia EIR: Does this center allian¢e you are talking about also ment, was interviewed by Liliana and Claudio Celani on imply the possible entrance of the PPI into the Italian govern Aug. 27, the last day of the "Meeting" in Rimini, Italy, ment, and if so, on what conditions? which is the yearly summer gathering of Communion and Formigoni: Only under spec,fic conditions. I startwith a Liberation. Together with newly elected General Secretary historical consideration: The bipolar system in Italy was born RoccoButtiglione, Formigoni is a leader of the Italian Popu prematurely, in a rushed way J and as a result of this we do lar Party (PPI), which had its first convention in Rome in not have today a modem bipolar system; we have a bipolar July, and replaced the Christian Democratic party (DC) system between two poles wbich also include the extreme which had governed Italy fo r the last 40 years. F ormigoni is wings. We have to bring the political axis of the moderate also chairman of the European section of the International pole at which we are looking, I toward the center rather than Parliamentarians Against Genocide in Bosnia, as well as the right wing. This means we must support the evolution one of the thousands of signers of the Schiller Institute call toward the center of important political forces, such as Forza to stop the Sept. 5-13 U.N. genocide conference in Cairo, Italia, the [Northern] League ,I and National Alliance itself Egypt. (For a more complete of profile of Italian political (which currently form the Be�lusconi government) making parties, see EIR, Feb. 4, 1994, p. 35 .) sure, for example, that National Alliance loses part of its nostalgic [Mussolinian] comp 34 International EIR September 9, 1994 government parties, practically ignoring the corruption of "special relation" with Great Britaip, assigning Germany a opposition parties on the left, and particularly the Communist special role in Europe. Do you thi� that this shift will have Party (PDS). I would say that the infiltration of left forces, a positive effect on Europe and on I�aly? particularly the PCI-PDS, into the Judiciary branch in the Formigoni: I would like to welc0I1le this shift with a "final last 30 years became so heavy that we can speak of a political ly!" Finally, our American friends r�alized that Europe is not attitude of the judiciary power also toward important parties the little sister of Great Britain, is pot a protectorate, but a of the present government who, however, are wrong in play continent inhabited by hundreds of: millions of people with ing the victim: [Northern League head Umberto] Bossi is different cultures, different religions, and different tradi wrong when he says that the investigations of the judges are tions. I would like to interpret this �ew relationship toward aimed against him. I would not exclude that there are foreign Germany as giving greater attentiofl to continental Europe, influences (definitely not the intervention of the CIA which where there is not only Germany, b1(tt also France, Italy, and Bossi is talking about) and one can certainly say that the other important components. The ftct that the United States action of the judiciary in Italy has to be understood in the is no longer just pro-British but alsq pro-European in a com context of a complicated international situation. However, plete way, is a very important step: forward and I hope that in the case of Bossi's movement, wrongdoings were found we will proceed in this direction. ! which had to be punished. EIR: At Corfu, Naples, and other f;uropean summits, there EIR: Do you think that Bossi was referring to a CIA inter was some discussion about the so-called Delors plan for full vention against the League? employment in Europe, a White Paper which takes its name Formigoni: Sure. You see, Bossi findshimself in a difficult from Jacques Delors, the former ptesident of the European position. He is the head of a movement which, according to Commission. The White Paper pr�posed infrastructure de thelatest polls, only has 4% ofthe vote, but he has 20% of the velopment projects echoing the Paris-Berlin-Vienna "Pro seats in the new Parliament, thanks to a very advantageous ductive Triangle" infrastructure pl� proposed by American agreement he made with Berlusconi, and he has maybe 40% economist Lyndon LaRouche in �989. Is the Delors plan of the power in Italy. In order to justify this enormous power being discussed also in Italy? that he has in his hands, he has to constantly invent plots, to Formigoni: Yes, it is being discu�sed, because the plague attack his adversaries (typical is his demonization campaign of unemployment is hitting Italy as well as the rest of Europe. against the PPI) in an attempt to keep this balance of power The Delors plan is one of the at�mpts to give structural in which he has a privileged place, from being altered. It's answers. Unfortunately, it is not s�fficient. The problem of all political reasoning which has little to do with reality. unemployment, which was recently discussed also at the Detroit summit, is a structural proqlem with deep roots. It is EIR: Contradicting the official historiography, the general necessary to create new sources �f work, new sources of secretary of the PPI, Rocco Buttiglione, recently wrote in the wealth, but certainly the Delors plan opens new important Italian daily LaRepubblica that Italy and the United States have perspectives; it's being discussed, .nd I findit important and common constitutional roots in the Christian tradition, and that agree with it. the true American soul is anti-Enlightenment. He said that, in this sense, he prefers the American Revolution of [first U.S. EIR: Over the last year in Italy, a qew current of geopolitical Treasury Secretary Alexander] Hamilton to the French Revolu thought emerged, which has reprelSentatives also inside the tion. Do you think this conception allows a new transatlantic Berlusconi government, which prf.!supposes an Italian for cooperation between Europe and the United States? eign policy navigating in the mid� of unsolvable conflicts. Formigoni: Certainly, and on the new basis of a reunifica It no longer, for example, envisions a role for Italy in the tion of the histories of our countries beyond the officialhisto Mediterranean as a bridge betwe�n two cultures, but as a riography , which is dominated by the Marxist culture and, in Limes, a fortified border, between two antagonistic worlds. the United States, by a "radical-liberal" culture which is Considering problems such as [Islamic fundamentalism anti-religious and anti-humanistic. I was always a convinced (mainly due to underdevelopment). the criminal U.N. policy supporter of friendly relations between the Italian and the to reduce the world population, .nd also the perspectives American people and of the need to value the popular roots opened up by the peace plan in the!Middle East, how do you of our countries, taking some influence away from those see this current of geopolitical tho�ght? lobbies and power groups which have very little to do with Formigoni: I do not agree with i�, because it is a negation, the true history of our countries. or at least a strong limitation, of t\le role Italy used to play, in its geographic position, and no� only in the course of its EIR: A question on the recent shift in American politics modem history, as a bridge betwten different cultures and with the visit of President Clinton in Europe and his speech different worlds: We are fully Eurc;>pean but also fully Medi at the Brandenburg Gate in Berlin: Clinton abandoned the terranean. I find that generally thel western world, including EIR September 9, 1994 International 35 Europe, underestimates the problems of the Arab world. It tends to misinterpret phenomena such as Islamic fundamen talism, and the Islamic religion itself, in a risky way for our continent and for the West. We need a profound revolution London plots for in the way we look at these phenomena, the ability to engage in dialogue, to open relations, to think in broad terms, of technoc to integration between Europe and the Arab world. racy over Italy EIR: Very much linked to this is the issue of the U.N. Cairo take conference. You are among the many signers of the Schiller Institute call to stop the Cairo conference. On this issue, there by Claudio Celani is a true war of information. The British malthusian Conor Cruise 0 'Brien accused the Vatican, for example, of creating A powerful faction in the City of London is plotting to over an unholy alliance with Muslims to defeat the Cairo confer throw the current Italian government, to replace it with a ence. On the other side, U.S. Vice President Al Gore (as have technocratic cabinet able to push through the most severe President Clinton and Secretary of State Warren Christopher) budget cuts and tax increases in Italy's postwar history. The just gave assurances that the U. S. position will be to defend London faction includes the G�orge Soros and Warburg in national sovereignty on the issue of family planning. What terests, as well as other groupsI represented by the Financial role will Italy play at the Cairo conference, with its delegation Times. This is the faction whi¢h in mid-August provoked a head, Family Minister Antonio Guidi, and how do you see financial crisis that precipitat� a drop in the value of the the American position? Is there a rapprochement between the Italian currency, the lira, to anihistoric low of 1,023 against Vatican and Clinton? the German mark, and which is planning to repeatthat assault Formigoni: Italy can play a very important role. I am speak on a larger scale, with the goal of bringing the lira down to ing to you from the Rimini Meeting, where Family Minister 1,200to the deutschemark. I Guidi came two days ago to outline the fundamental policy Such a scenario was outlineldby David Roche in an inter guidelines of the Italian position at the Cairo conference. It view with the Italian daily Cqrriere della Sera. Roche, a will. be a position giving great attention to the issue of eco former employee of the MorgJm Stanley investment bank, nomic development and population, not in the sense of lim has now built his own corporation and is one of Britain's iting freedomand imposing a ferocious birth control policy, most influential financial analtsts. He predicted that Italy, but in the sense of helping the Third World to develop and along with Sweden, will facd a severe financial crisis in support individual responsibility. I think this is the right posi September and will be out of the European Union by Decem tion. I do not see anything wrong in a convergence between ber. As an attemptto avoid tijit, Roche suggests that both Christians and Muslims on these positions, which I believe countries will take extremely �npopular measures to bring are positions of freedomand responsibility. their state deficitsunder control. The attitude held until now by the American delegation The dimensions of such meilsureshave been provided by frankly surprised me, because it contradicts the most pro Carlo De Benedetti, the Italian financierallied to Soros who, found inspiration of the American people. I see it as a position at the end of August in an intetview with his newspaperLa strongly influencedby powerful economic lobbies and ideol Repubblica, called for a comllined package of budget cuts ogies, but foreign to the true tradition of the American peo and tax increases of at least $�2 billion. Such an austerity ple. Maybe there are some openings in the statements of the program, more than double what the present Berlusconi gov last hours. If there are, I hope these openings will increase, ernment reluctantly is trying to implement, would be the otherwise it will be a clash, and it would not help anybody. most severe in the last 50 yearsl It looks as though the City lof London is trying to direct EIR: This year the Meeting in Rimini was entitled "God's the first waves of the comingj financial collapse onto the People on Its Way." Is this an answer to the false alternative "weak flanks" of Italy and Sweden-Central Europe being between globalism and nationalism (in a chauvinistic sense) their strategic target. As Lyndbn LaRouche commented in which is being offered by the lay world? an interview on Aug. 17, "George Soros has moved as the key Formigoni: Yes, but not that alone. The theme of the people player who brought about the destabilizationof the Swedish is dear to us, dear to all cultures which have a religious kroner and the Italian lira, whq is making a major attack on inspiration and areparticularly attentive to the theme of popu the German mark. This is alI: run from London, and the lar identity, national identity, religious identity, which does purpose is to destabilize Clinton's working treaty partner, not exclude, on the contrary it founds, a perspective which [Chancellor Helmut] Kohl of 36 International EIR September 9, 1994 government and replace it with a technocratic cabinet . In its weekly newsletter on Aug. 15, S.G. Warburg merchant bank predicted that in September , the government coalition will collapse because of internal conflicts and that either former IRI chairman Romano Prodi or current Banca d'ltalia chief Antonio Fazio will lead a technocratic government able to push through De Benedetti's requested austerity . Informed sources have told EIR that the trigger for the crisis will be an investigation warrant against Prime Minister Silvio Berlusconi , in the context of the Milan "anti-corrup tion" investigation, which will be used as a pretext to engi neer the financial crisis due to "loss of confidence by the markets." There are several reasons why London wants to over throw the Italian government . The simplest and most overrid ing is that, in the context of the coming global financial collapse , no elected government can implement the kind of fascist austerity measures the City of London will require in order to attempt to save its assets. Gianfranco Miglio, author of a blueprint for the breakup of the Italian nation into three small states, explained to Corriere della Sera on Aug. 31: "I The government of Italian Prime 1VI l111.m'" Silvio Berlusconi (left) believe that we will have a serious economic crisis . Today is being targeted by London . coalition ally and Northern League leader Umberto Bossi on right. the problem is the financial law [budget] . It is difficult for Italy to give the guarantees demanded by the markets ." Then , describing the four government coalition partners , he said: for infrastructure development and President Clinton's new "The whole MSI, the former DC, part of the [Northern] preferential relationship with Chanc9110r Kohl of Germany . League , and part of Forza Italia are unable to agree on a Third , on a key issue such as the U.N. International rigorous policy against public debt and welfare ." Conference on Population and Devel6pment, the Italian gov Miglio is right . Berlusconi's party , Forza Italia ("Go , ernment has made a major concesJion to the Vatican by I Italy"), Umberto Bossi's Northern League , and Gianfranco appointing a delegation which will support the Catholic Fini's National Alliance (the former Italian Social Move Church's position . ment , which is trying to shake its Mussolinian image) all The fourth reason, which invo Ives a potentially most promised voters that they would not increase taxes . Thus, revolutionary issue , is the Italian government's move to re the present austerity plan, drafted not to balance but simply strict the power of the central bank. to reduce the ratio of state debt to yearly Gross National The beginning of financial attac s which culminated in Product , now well over 100%, is composed exclusively of the mid-August collapse of the lira ban be traced back to a budget cuts . But when it came time to decide where to cut , a campaign started by the Financial Times at the beginning brawl broke out within the coalition, with half the govern of June , when the City of London �outhpiece ran banner ment opposed to cuts in pensions . Finally, a compromise headlines attacking the alleged Italian government move was reached , to the effect that pensions will not be reduced "against the independence" of the Banca d'ltalia. The cam (except to adjust for inflation), and that most of the roughly paign , which has never stopped, is xrlotivatedby the govern $11 billion in planned savings on pensions will come from ment decision to "interfere" with the Jovereignty of the Banca extending the retirement age to 65 and reducing payments d'ltalia by suggesting an outsider for the post of director for new pensions , starting next year . general, which became vacant whed Lamberto Dini left the But the discussion on pensions showed that when it post to enter the governmentas treasdry minister. The move, comes to real cuts, this coalition is unable to implement aside from the real government motivation, would objective them . Exemplary is what Labor Minister Mastella, a former ly weaken the freemasonic oligarc�y which has ruled the Christian Democrat , stated: "In Italy , we have 20 million bank since its founding, and which i� currently led by former pensioners. They can form a party from one day to the next." Gov . Carlo Azeglio Ciampi. This 1igarchy is pushing the The second reason why London is uncomfortable with candidacy of Tommaso Padoa-Schioppa9 , a globalist and an the current Italian government is that, despite the presence architect of the "Europe '92" free-market scheme, who re of British agent Antonio Martino as foreign minister , Italy cently authored a Bank for InternatIOnal Settlements report has failed to sabotage the Franco-German alliance on Europe on derivatives which recommendetl a plan of no action an policy, and it has instead favored both the Delors plan against speculation. The Ciampi gro p includes former Bud- EIR September 9, 1994 International 37 get Minister Silvio Spaventa who, according to City of Lon aboard Queen Elizabeth's ya¢ht Britannia. Now the press, don sources, is "giving the line" to the Financial Times, and in reporting about the conflic� between the government and technocrat Romano Prodi, a former collaborator of Soros the central bank, uses the term "Ciampi boys" as synonymous who is being pushed by Warburg as the next prime minister. with "Britannia boys." Prodi, an expert in asset-stripping, was appointed head of In 1993, current Deputy Budget Minister Antonio Parlato IRI, the giant conglomerate that, along with ENI, constitutes was the first and most outspolcen member of Parliament to Italy's state-controlled industry, under the Ciampi govern expose the "Britannia boys," and is now the most outspoken ment, and has overseen major privatizationoperation s, such in the attack against the Ci�pi mafia in the central bank. as Banca Commerciale and Credito Italiano, two major Parlato has presented a list of journalists who have been in banks, as well as SME, the food industry company which the payroll of the Banca d'Itailia during Ciampi's mandate, was sold to international cartel giants Nestle and Unilever. and is now waiting for an investigationto check on his allega Prodi has been recently retooled and presented as the candi tions. date to lead the next government, incase the NorthernLeague Another member of government, Transportation Minis decides to leave the government coalition and join the oppo ter Publio Fiori, has called fc)r forcing the central bank to sition. "collaborate" with governmentpolicy . Fiori, who is fighting Indicating how serious the Prodi option is, his sponsors to find financing for transportation infrastructure projects, have taken precautions to eliminate connections to potential including Italy's North-South high-speed rail line and the investigations against him. Two days after Prodi announced bridge between Italy and Sicily, is frustrated because his his candidacy, his closest friend and adviser Giuseppe Tra plans are being sabotaged by the "Ciampi boys," including montana was found dead in a mysterious car accident near their allies in the governmentJ The latest sabotage involved Brescia. Tramontana, a manager for the Agnelli group, had the central bank decision to sell a bank owned by Italy's just been hit with an investigation warrant for bribery, and railway company, which is statCcontrol led, to a privatebank. could have involved his friend Prodi, especially if the illegal Unfortunately, the necessity of ending the "extraterritori details involved in the sale of car company Alfa Romeo to ality" of the central bank and lreforming it as an instrument Fiat, engineered in the 1980s by the two friends, were to of national policy, in the "Hanriltonian" or "LaRouchean" come out. Prodi; however, has "friends"internationally who sense, is not raised by anybody except the LaRouche move are helping to create the crisis conditions which favor his ment. In its newsletter, Nuo�a Solidarieta, the LaRouche power bid. Well-informed London sources report that the movement in Italy calls for "constitutionalizing" the central Wall Street financial holding Goldman Sachs, a former em bank in order to implement a 38 International EIR September 9, 1994 Perez de Cuellar: From U.N. capo to Peruvicin 'Inca'? by Sara Madueno The launching of the presidential candidacy of Javier Perez ment, each detail, each word of Perea de Cuellar's campaign de Cuellar, former secretary general of the United Nations correspondsto a laboratory model for manipulating the popu and, according to the opposition, "the only one capable of lation, especiallythe Indians, with ancestralmyths designed competing with President Alberto Fujimori," constitutes yet to awaken the alleged "trauma of the Spanish Conquest." another calculated attempt by the one-world government Within this scenario, Perez de Cuell� would be the sublimi crowd to wreck the sovereign nation-state of Peru via the nal personality emulating the "Inca,1' the child of the "Inti" ballot box. Perez de Cuellar's loyalty to the one-world project sun god who comes back to avenge hispeople . is attested to by his lO-year stint as U.N. secretary general, These same myths, the "myths! of the Inkari" and of which he was entrusted to restructure to such ends. He had "Wari," were also manipulated by the foreign and Peruvian barely set foot on the soil of his native Peru on Aug. 14 when anthropologists who entrenched themselves in the University the essential content of his candidacy was already defined of Huamanga during the 1960s to incubate Shining Path. one-worldism, separatism, multiculturalism, and malthu Rereading the campaign messages of Perez de Cuellar from sianism. this perspectiveconfirms that it is precisely this manipulation The main card held by the promoters of "don Javier's" o/ the myth within the population, especially among the 25% candidacy is that of his services at the helm of the U.N., a that are Indian, that is the central axiQm he shareswith Shin position he was granted in 1982 thanks to Margaret Thatcher ing Path. and George Bush, the standard-bearers of one-worldism. Artificial indigenism is not the only thing Perezde Cuel Among other things, Perez de Cuellar gave U.N. approval lar has in common with Shining Path. The day afterhe en for Britain's invasion of the Malvinas Islands. Under his tered the country, the candidate reVived the thesis of the charge, the U.N. fully surfaced as the gendarme of one "breeding ground" used by Shining Path in its university worldism and of the genocidal population-control policies recruiting, when he warned that "t¢rrorism will continue. now put forth for global implementation in Cairo. . . . If the reasons for which it is constituted and for which Even though President Fujimori has kept his promise to this kind of war is launched are notiresolved, it will return maintain the free-market scheme ordained by the Internation under another name. " Days earlier, his campaign manager in al Monetary Fund, a pledge which he reiterated during the Lima, Michel Azcueta, the leftist fQl11ler mayor of Villa El Aug. 26 visit to Peru of IMF Managing Director Michel Salvador, declared his belief that Perez de Cuellarfavored Camdessus, the one-worlders will never forgive him for the dialogue with the terrorists. precedent for sovereign self-determination that he set in April 1992, when he decided, based on a civilian-military alliance, Tavistock's men in Peru to purge his nation's corrupt democracy and to wage a thus Using psychoanalysis as a kind pf "social engineering" far successful war against the terrorist subversion of Shining tool to bring about social change on a mass scale has been Path and the Tupac Amaru Revolutionary Movement the specialty of the Tavistock Institute in London and of the (MRTA). Fujimori gained precious time for Ibero-America Frankfurt School in Germany since �eir foundings in 1921 by upsetting the one-worlders' scenario for synchronized de and 1930, respectively. It is no accident, therefore, that Perez stabilization of the continent. de Cuellar's promotionas a candidate has been the responsi bility of prominentTavistock graduates such as deconstruc A campaign on the Tavistock model tionist psychiatrist Max Hernandezand his disciple Francisco Exploiting the most sophisticated social engineering Sagastegui, among others. techniques concocted by the London Tavistock Institute, Both of these expert "social engineers" direct a team Perez de Cuellar turnedhis electoral kickoff into a theatrical which for more than a year has been pushing Perez de Cuel act loaded with mythical-religious symbolism. Each move- lar's candidacy through the so-called Democratic Forum, EIR September 9, 1994 International 39 on whose board one also finds the schismatic theology of theirprecursor, stated during the 1930s that "the force of the liberation priest Gustavo Gutierrez. Hernandez and Sagas revolutionaries is not in theiIi science, it is in their faith, in tegui also head up the candidate's "programmatic team," their passion, in their will. It is a religious, mystical, spiritual whose output can be seen in "Project Agenda Peru." Both force. It is the forceof myth. '. the Democratic Forum and Agenda Peru have provided their own "breeding ground" for the most recalcitrant ultra-liber 'A President for all rac s ' als, liberation theologists, radical feminists, and proto-ter Anticipating the profileof � Perez de Cuellar's candidacy, rorists. anthropologist Juan M. Ossie!, a member of the Democratic Forum,paraphrased the Nietz&chean Jose MarfaArguedas in Inca reincarnation an interview with the magazilneDebate last April, warning Perez de Cuellar's first histrionic act upon returning to that Peru needs "a President 'for all races," whose mission Peru with his wife, after living for years in Paris and New would be to rechannel the country "under all the democratic York, was to go to Bolivia and cross the border into the and institutional rules demanded by the globalization pro southernmostPeruvian city of Puno, where he reenacted the cess"; that is, he clarified, a P4ruvian editionof the "Bolivian "legend of Manco Capac and Mama DelIo" on the founding model." It should be noted th* before arrivingin Peru, Perez of the Inca Empire. Following the "Inca path," Perez de de Cuellar was a guest of his friend Gonzalo Sanchez de Cuellar travelled fromPuno to Cuzco. According to the leg Lozada,President of Bolivia $ld a member, along with Perez end, Manco Capac and his wife Mama DelIo emerged from de Cuellar,of the Inter-Ametican Dialogue. Sanchez de L0- Lake Titicaca, located between Peru and Bolivia, sent by zada selected as his vice presidentan Aymara Indian to give their father the sun god to found the Inca Empire. The chosen the impressionthat he is the !'Presidentof all races" in Bo land was Cuzco, where Manco Capac supposedly hid the livia. golden baton given him by his father. In a recent interview in the Peruvian magazine Caretas, In a gesture identifiedby many as a calculated strategy to Perez de Cuellar said that a$ president of the culture and erase the stigma of having been absent fromthe countryfor development commission of Vnesco, he would proposethat more than 40 years, Perez de Cuellar greeted the population since Peru has an Andean ide�tity, this "should be preserved, in the Aymara dialect, described as "one of Peru's three not only with respectto lang",ageand folklore, but in every languages" by his spokesmen. The next day, he explained element that makes up the QUechua nation, because thereis in Spanish that his presence there was because this "is the a Quechua nation within the IPeruvian state which must be ancestral place which gave rise to the Inca culture ....It preserved, . . . Everything I �peak of refers to the Peruvian came out of Lake Titicaca, fromthe force of water and of the pluriculturalnation . . . . I be.ieve that some day we will be sun," and that is why Manco Capac "is something magical able to speak of federalism, ahd why not?" and transcendental." Asked if he wasn't afraid!that "this identity recognition Perez de Cuellar's theatrics received the blessing of the might provoke political demands someday" (i.e., problems theology ofliberation bishop of Puno, Jesus Mateo Calder6n, of separatism), Perezde Cuellar answered, "I don't believe who stressed that Peru "is an ethnically rich larid . . . where a revolution of this type wouIklbe prudent," but didn't deny the sense of nationality and of the ancestral forceof the Inca the possibility. In fact, he reittirated that "whatwe aredealing Empire was born." with is not merelyrescuing Ql1echua, but also creating bilin The "myth of Inkari," altered and expanded by the an gual areas." This, too, reminds us of Mariategui, who in his thropologist sponsors of indigenism, describes how "Inkari," 1924 forewordto the book Tempestad en los Andes (Storm or "Incarri," the mother of the sun, was disembodied by the in the Andes), written by anthropologist Luis E. Varcarcel, wiracochas (the bearded men from Spain.) The son of Inkari, said: "The faith of indigenous resurgence does not come from the "Inti"-the yellow god-was replaced in the Incan tem westernization;it is not the wJtite alphabet that raises up the ples by a Nazarene (Jesus Christ). But in time the-Inti will Indian. It is myth." return, according to the myth, and will re-join the scattered Perezde Cuellar was explicit on this in his Caretas inter parts of his mother. When Inti returns, concludes the myth, view: "I am among those wholthink that in those departments so, too, will his son, the "Inca." of the countrywhere Quechua is spoken, all primary instruc In Cuzco, Perez de Cuellar recalled the Inca Empire and tion should be in Quechua. '" And while recognizing that said that he has received "a transfusion of force and energy" "Quechua is not a mass-cormp.unicationlanguage nor a lan from it. He continued with a harangue filled with magic guage of present-day culture which refers to science and symbolism worthy of the most fanatic Shining Path dema technology," this is unimportant; what is important is that gogue, in which he stated that "I have come hereto receive Quechua should be "a spokeo, written, and studied official the blood of our ancestors, to begin the struggle to which we language. . . . Quechua is SpOken by 10 million peoplewho are all committed." live in Bolivia, Peru, and E�uador." That is their destiny, Jose Carlos Mariategui, considered by Shining Path as that is their identity, he claim�. 40 International EIR September 9, 1994 it does not intend to sustain the refugees in Zaire over a long period of time. Panos Moumtzis, spokesman for the U.N. High Commission on Refugees, toldi BBC on Aug. 12 that the Hutu elders areprohibiting their villagers fromretu rning, and likened the situation to that of th� Palestinian refugees. Is Zaire Britain's The huge humanitarian operation illGoma may continue another six months, "but it clearly will not continue for the nextAfr icantar et? next 5, 10, 15 years." The Zaire governmentalso will not be g able to keep the refugees for"too long a time," he said. by Linda de Hoyos The conditions are thus being put in place for additional military action in the region, either from U.N. or between the warring groups, this time bringing Zaire into the fray. For the second time in the six weeks since the Rwandan PatrioticFront (RPF) swept the Rwandan governmentarmy Policy of destruction out of Rwanda, Lady Lynda Chalker, British Minister of Zaire, now primarily an asset of t�e French government, Overseas Development, has been touring the East Africa as was the former Rwandan regim�, is one of the major region. During her firsttrip , Chalker, whose ministry is the targetsin the British grand strategy fOJ' East Africa, launched former Colonial Office forthe British Empire, spent fivedays with the October 1990 invasion ofl Rwanda. Reportedly, in Uganda hosted by her friendPresident Yoweri Museveni, Rwanda is in the paradigm for the new British Foreign Office logistical .and ideological sponsor of the RPF, and briefly agenda in Africa. visited the refugeecamp in Goma, Zaire. This time, Chalker, As EIR documented in its Aug. �9 issue, the gameplan, reported the British Broadcasting Co., is visiting Burundi as it is unfolding outward fromU gan�, involves the destruc with a different message: All governmentsof the region must tion of all independentand local political structuresand their ensure that the former Rwandan government army, now replacement with entities willing to ,be tools of the British holed up in Zaire, must not be permitted to rearmor regroup. Overseas Development Ministry, wilh a healthy component Her trip puts the British imprimatur on demands already of British citizens functioning as th� top local technocrats. coming from the RPF. A delegation of the new government The so-called "success story" for tihis policy is Uganda, in Kigali, led by Interior Minister Seth Sendashonga and where Chalker tool Museveni has helcllpower with the British Rehabilitation Minister Jacques Bihozagara, arrived in after Uganda had been destroyed by the first dictator, Idi Goma on Aug. 29, to place demands before the Zaire govern Amin, and then a brutal seven-year civil war. ment for repatriation of Rwandan refugees to their homeland. With the RPF invasion and vi¢tory, now Rwanda is Zaire, the RPF said, must help return cash, weapons, and poised either for more years of civiL war, or the protracted equipment which the ousted Hutu government hadtaken with displacement of the majority of its pci)pulation. Not only has them into exile. In addition, the Zaire Army must disarmthe the 22-year political machine of assassinated President Juve remnants of the army of the former Rwandan government; nal Habyarimana been swept out oilthe country, but other the two RPF ministers claimed the Zaire governmentis now institutions, such as the Roman Cathplic Church, have been trainingand reorganizing the Rwandan refugeearmy . devastated. I Zaire Defense Minister Admiral Mavua stated that such Estimates are that the war eliminated one out of every disarmament is occurring continuously, and that the RPF has four priests in Rwanda, where more 1!han75% of the popula no proof to back its claims of Zaire aid to the Rwandan tion is Catholic, reported the chur¢h magazine 30 Days. military. Many religious were also killed, many of them "en masse." And amid westernpress reports that the Rwandan Hutu Aside fromthe priests killed during the mass killing of April army is now reorganizing and rearming, Chalker's pal Mu and May, the RPF murdered the archbishop of Kigali and seveni has gone even further. In a mid-August statement, two otherbishops the Front had taken under its protection. Museveni called on "the international community"-thatis , Cardinal Roger Etchegaray, who vi�ited Rwanda at the end the United Nations-to arrest Rwandans in Zaire who are of June, told 30 Days that "the churth has been completely suspected of war crimes. The U.N. has already called for a dismantled, its surviving members SCattered. It is in a state war crimes tribunal against the Hutu regime on charges of of shock." 30 Days further reported!that the church "found "genocide." Such action would likely necessitate directUN itself caught in the middle of this comflictfor power because military intervention into easternZaire itself. the men of the church also represented an authority, or be There are already moves afoot for a forced repatriation cause by opposing the spiral of viol¢nce, they were consid of the Hutu refugees fromRwanda in Zaire. While the U.N. ered enemies by both sides. There is now no doubt that in Development Program has moved into Rwanda to begin to eliminating the church hierarchy, �e aim is to destroy the establish satellite communications, the U.N. is making clear church as an entity and as a point of teference." EIR September 9, 1994 International 41 himself with the "official"Al3erian earthly powers. The sec ond hypothesis is that in the ; current paranoid mood of the French population on the Al3erian situation and toward Is lam, any policy that claims to increase security would be Imam Larbi Kechat welcomed. If the arrest of L¥bi Kechat had been followed by violence of any kind, this }vouldhave created the perfect freed in France pretext to repress it through police operations. If successful, such a move would have boo�ted Pasqua's credibility, who by Odile Mojon is building himself up as a p01ential presidential candidate. Far-fetched? One source ipformed EIR that at the Friday prayer following Larbi Kechat's arrest, a stranger started Among the 26 Algerian citizens assigned to a forced resi shouting inflammatory slogaJls. Only the intervention of a dence at Folembray (about 75 miles from Paris) by French couple of individuals kept the incident from degenerating Interior Minister Charles Pasqua, 20 have been expelled to into violence. However, the strikingfact was the presence of Burkina Faso and six have been freed, but assigned to various a man with a camera, app�ently waiting for something. fixedresidences in France. Among them, the most notorious Some "exotic" scenes maybe� case is that of Imam Larbi Kechat, one of the most respected The problem for Pasqua, lis that the whole operation is figuresamong the 3 million Muslims in France. tainted with dubious motives iat a time when the legality of On Aug. 10, Larbi Kechat of the Adda-Wa mosque in the arrestand "forced residencb"procedure arecoming under Paris was arrestedfol lowing a ministerial decree of expulsion scrutiny. In this case, Pasqu� revived a little-known law accusing him of propaganda against the West and sympathy last used during the 1950s Algerian war-to justify his ac for the Algerian Islamic Salvation Front (FIS). He and the tions. And now 20 foreigners have been sent to BurkinaFaso others were apparently considered by the Interior Ministry as without any judicial procedur¢. a threatto state security. Although Larbi Kechat is lassigned to a forced residence The arrests began after the murder, in Algiers, of three in the 19th district of Paris (probably a face-saving measure French citizens by the Islamist Action Group (lAG), part of for the government), the sitUation remains tense within a a long escalation of tension between France and Algeria. Muslim community which is I now , in numbers, the second This situation has led Paris to take measures such as closing largest religion after Catholi¢ism. Most people live in the down the French high school of Algiers and imposing a visa suburbs of big cities-Marseille, Lyon, Lille, Paris-where requirement for Algerians coming to France. The visas can violent incidents have taken place following many bavures no longer be delivered by the French consulate in Algeria but (accidental police killings of young foreigners). Drugs, un only in the French city of Nantes, which means that onlf employment, illiteracy, and nc>future is the common fate for those who have good connections and money \\Iillbe able to young Africans and Beurs (second generation immigrants leave Algeria. from the Maghreb, bornand ririsedin France). In this situation, the arrest of individuals supposedly linked to the FIS is more a maneuver to propitiate the French The British hand electorate, in a pre-presidential election period, than a securi But whoever looks behindlthe scenes will findthe British ty measure. The arrest of Larbi Kechat, considered even by hand trying to stir up chaos. ]his operation is targeting both the Paris daily Le Montle to be an "imam above suspicion" countries for destabilization, t>layingon both the extremists who is preaching moderation and openmindedness, has in the Islamic movement and I the French "laicists" who are raised many questions. Deeply involved in the Islamic-Chris prone to anti-religious feeling$. Two "Islamic" events, filled tian dialogue and a regular guest on "Knowledge of Islam," with inflammatory speeches against France, recently took a Sunday TV program, he has always clearly rejected Islamic place in England (on Aug. Hn Wembley, and Aug. 28 in fundamentalism. Hence, many articles in prominent newspa Sheffield) under the protectiop of British police. Observers pers (including Catholic press) stressed the incongruityof his contrast the atmosphere at thcise events with the moderation of interviews given to French media by Sudanese religious arrest. Important intellectuals, priests, and ministers inter ' vened to request his freedom. leader Hassan Al Turabi. If we take into account that Larbi Kechat is a very influ The danger is that the French governmentand elites will ential man-his mosque is France's biggest and attracts up be distracted froman West-ElIIStand North-South pro-devel to 5,000believers toward a moderate, orthodox Islam-two opment approach, into a polic� of repression in Algeria and hypotheses are to be considered. The firstwas developed by against the Islamic community in France. Men like Larbi the weekly Nouvel Observateur. According to some Muslim Kechat are among the most cIiIcialto avoid such chaos. It is circles, the government of Algeria asked for his arrest, al good news that he is now free�but it is worrisome that he is though the imam, an Algerian citizen, has refusedto align forbidden to travel beyond Pal!i.s. 42 National EIR September 9, 1994 Ambiguity of language What cannot be passed over in silence is the ambiguous language which runsthrough a great !part ofthe draftdocu Vaticanspok esman ment and is found especially in the points which constitute the fundamental nucleus of the ideas which the conference is proposing to promote. Once again today, on the vigil of the gives Cairo briefing opening of the work, reference must be made to several concrete examples. The firstregards theconcepts of "repro Thefo llowing is the text of a briefingon the Cairo conference. ductive health" and of "sexual healith," two terms which given by Dr. Joaquin Navarro-Valls. director of the Holy appear more than 1 00times in the draft document, and are See Press Offi ce. on Aug. 31. 1994. It was supplied to EIR quoted exclusively from working documents of the World by the Vatican Mission to the U.N .• and does not include the Health Organization, without having ever been approved by question and answer section of the press conference: WHO itself or by other internationalassembli es. It can again be observed how too often, in the draftdocument, one makes The Holy See delegation to the InternationalConference on reference to "rights" never sanctioned nor recognized by the Population and Development is going to Cairo with the idea internationalcommunity. of making a contribution to obtaining a document of consen Emblematic of this is the case of Para. 7.1 on "reproduc sus. Never, on the part of the Holy See, was the idea ever tive health" which, while containing some elements that can considered not to participate in the work of the International be appreciated, also contains reference to "theright to have Conference on Population and Development. It is in fact access to methods of fertilityregulation . It is, in effect, abor opportune to recall that the presence of the Holy See has tion on demand, since in thedefinition of the World Health been assiduous and constant in all the regional preparatory Organization-according to texts prC1sentedin the third pre meetings. The Holy See thus feels strongly involved in the paratory conferenceof New York-the term"fertility regula formulation of the principles and the working out of solutions tion" includes abortion. Abortion is!thus considered as an in this internationalmeeting . essential component of "reproductive ihealth. " In the repeated The Holy See is well aware of the complexity of the ambiguity of this language is exclu�ed every limitation to problems connected with the material and moral develop abortion which is proposedas a possibility in whatevermo ment of mankind. But, at the same time, it knows it is acting ment of the pregnancy and for whatever reason. in a fieldwhich does not regard joint, ideological, geopoliti One must recall in this regardthat there is no formwhat cal or sectorial interests. The themes which will be discussed soever df internationalconsensus on a generic"right to abor in Cairo touch on, in a particular way, the respect for and tion." Such a "right" could, precisel)!, be deduced fromsev dignity of each human person. �ral of the statements contained-sometimes in an implicit This awareness of the Holy See also comes from the way, other times explicitly-[in] thedraft document. concrete situations in which the church operates-through, Mr. Al Gore, vice president of the U. S. A., and member for example, her 21,757 worldwide health institutions, 1 ,800 of the American delegation, recently!stated that "the United of which are found in Africa alone. It is in these receiving States have never sought, nor do the)l seeknor will they seek points, in the service of women, maternity, childhood, and to establish an international right tp abortion." The draft whoeveris found to be suffering, that the church feels and document, which has the U.S. administration as its principal proclaimsday by day the inviolable right to dignity given to sponsor, contradicts, in reality, Mr. Gore's statement. each member of the human family. The imprecision, the approximation of terms is not just a It is also on these bases that the Holy See feels it can and matter of lexicon terminology. Treating as it does of rights must state-in Cairo as in every other circumstance-that to beinserted into the normsand laws of single countries, it the multiple solutions which can be applied to solving the seems necessary to study more deeply and completely to give complex human problems, cannot go against, nor violate, a precise and definite meaning to concepts which concern nor much less humiliate the rights and dignity of the human human behavior which have deep cultural and ethical impli person. cations. Among the language ambiguities must be singled Together with the complexity of the problem, the Holy out the statement-in Para. 7--on"ri:productive rights" as a See is not unaware of the positive aspects contained in the prerogative of "couples and individuals." What meaning can draft document of the Cairo conference. But at the same such a concept have? It would be justifiedto think that such time the Holy See cannot be silent on the serious lacks, the a biological absurdity can legitimize iliewill of man to "sub imprecisions and the ambiguities of language, the unproven due" the woman to satisfy his "reproductiverights ." statements and the very social philosophy which is in the Also in this chapter one finds tbe extremely loose and draft document which will be soon discussed at the Cairo selective use of statistics, both in lihe order of population conference. growth as well as moral conduct and tPthe not-reached objec- EIR September 9, 1994 International 43 tives of "family planning" programs. The technical role of such a projection: In the 113 pages of the draft on develop the U.N. 's Division for Population would thus seem changed ment there are only seven actually dedicated to it. around. The entire scientific apparatusof the means of statis We should remember that population policies are only a tical surveys, judging from references in the draftdocument, part of development policy. fn fact, they include the whole appears totally inadequate and shows that it needs a complete gamut of areas: nutrition, medicine, agriculture, education, revision. demographics, economics, a d politics, together with more profound aspects, moral and fspiritual dimensions. True de The family velopment will not be respec�ed if only demographic data is If ambiguity of language runs all through the draftdocu considered as the obstacle to �evelopment. ment, it is more explicitly s 44 International EIR September 9, 1994 Reportfr om Rio by Silvia Palacios Lula follows in Cardenas's footsteps rum, and detailed the Forum's The Sao Paulo Forum's candidate in Brazil panics over his likely history. Like other frlero-American mem defe at in the October elections. bers of the Forum, the PT has been careful to keep a reserve concerning the Forum's exisfence and objectives, he effects of Mexico's recent the Forum's next conference, we will especially becau�e Lula also belongs presidentialT elections will certainly be have representatives of leftistgovern to another entitYj that brings together felt in the firstround of the presidential ments." the cream of the ipternationalfinancial elections held here on Oct. 3. The Castro has personally made a huge community: the �nter-American Dia smashing defeat of Cuauhtemoc Car effort to ensure Lula's victory, be logue. denas of Mexico's Revolutionary cause he considers it crucial for the This dual m�mbership sometimes Democratic Party (PRD) fell like a survival of his own shaky regime. creates messy pttoblems for Lula and bucket of cold water on the candidacy Brazil is the one Ibero-American the PT, given their calling card as the of Luis Inacio "Lula" da Silva of the country with the economic infrastruc defenders of the I dispossessed. When Brazilian Workers Party (PT), given ture that could help Cuba-at least for Lula and the lea�rship of the PT were that both campaigns were intended to a while. That's why Castro has assidu in Washington for a campaign stop serve as vehicles for the Sao Paulo ously cultivated good relations with earlier this year, organized mainly by Forum seizing power and launching a Brazil, but most especially with the the Dialogue, t1!tey were confronted new era of chaos and destruction in PT's leadership. during a press copferencewith a ques Ibero-America. The Sao Paulo Forum For example, in Sao Paulo, it has tion concerningItheir membership in is the continental neo-communist um just been revealed that the Cuban gov the Forum alongside of terroristssuch brella group founded in 1990 at the ernment concludeda deal worth more as Colombia's M-19. In a barely audi urging of the Cuban Communist than $300million to be paid back over ble voice, Lula Icould only mumble, Party. 10 years. The transaction favors "I don't know thFm." Cardenas's defeat in Mexico oc Cuba, since it amortizes its debt to And regardi*g the expose in Cor curred at the point at which Lula's Brazil, and extends a line of credit to reio Brasiliense� a terrified Lula re campaign had already started to slide. Cuba of more than $100 million. The sponded that th� existence of the Fo In only a few weeks, Lula lost almost bad part for Brazil is that it will pur rum is no seqret and that at its 20% in the polls. Last May he was chase medicines fromCuba that Bra founding meetiqg in Sao Paulo, "We clearly favored to win, but has now zilian industry can easily produce invited the press" but no one came." dropped to second place, with 28% of itself. According tQ polls taken by com the vote. During the same period, free The PT has nervously responded panies sympath 'tic to Cardoso, also a trade candidate and former Finance to its setbacks, and is being careful not member of the �ialogue, he is fore Minister FernandoHeorique Cardoso to allow itself to be openly linked to cast to receive a least 40% in the first moved into first place, with polls the continental terrorist and pro-ter round of voting. According to all ac showing him winning with 40% of the rorist apparatus. counts, this is 4ue to the single cir vote. Three months ago, the Ibero cumstance thatarazi l' s new monetary Thus, the Sao Paulo Forum is los American Solidarity Movement in reform, which created a new curren ing ground that it thought it definitely Brazil began circulating thousands of cy, the "real," seems to the general controlled. In July 1993, during the copies of a pamphlet entitled Lula and population to � working. Its initial Forum's Fourth Conference in Ha the Sao Paulo Forum: Agents of One effect has been to increasethe effec vana, its leaders mapped out an ambi World Imperialism, which has caused tive income of a large segment of the tious strategy to take controlof two of a huge stir within civilian and military labor force that previously saw infla lbero-America's most important circles. Panic also erupted within the tion wipe out 310% of their monthly countries, Brazil and Mexico-with PT leadership after Correio Bra paycheck. But everything is unpre out neglecting others, of course. At siliense, the leading newspaper of dictable, because the new Internation that conference, Lula promised Cuban Brasilia, the nation's capital, pub al Monetary Fund-type program is al dictator Fidel Castro in a euphoric lished an expose on Aug. 17 of the ready taking on water: Monthly speech that "I have no doubts that at PT's membership in the Sao Paulo Fo- inflationin Augpst was almost 5%. EIR September 9, 1994 International 45 InternationalIntelligence making ends meet. These two figures are with mutin�us soldiers demanding to be Shakeup coming in on a collision course. The Russian Armed paid in doll�s. Russian military brass Forces are turningfrom a means of security Meanwhile, Tshisekedi, whom Mobutu into an integrated threat to the individual, had fired from the post of prime minister, "In a very short time, there will be a reshuf the state, and society." refused to step down, creating the risk of fleof the high military command in Russia," As a point of contrast to corruption, the civil war. Btlgium and France droppedtheir a senior Moscow source affirmedto EIR on Russian media are quoting Gen. Aleksander support fori Tshisekedi, after discovering Aug. 24. He said that this is the explanation Lebed, commander of the 14th Army in that Mobutl/.'s specialarmy could still ob for the sudden rash of attacks, throughout Moldova: "I have not stolen. I do not steal. struct theiI] exploitation of Zairean re- the Russian press, on "corruptionand graft" All my belongings can easily fitinto a single sources. I in the Russian Army, with generals and oth jeep." Mobutuihas pledged to abide by the in er officers implicated. According to the structions qf the International Monetary source, there is both a fight within theRus Fund and World Bank, and accordingly ap sian political elite about how to orient to pointed Ke�go wa Dondo, to impose the ward the military, and a fight within the Belgianpointman heads IMF's Stru¢tural Adjustment Program on military about policy, leadership, funding, Zaire 's government Zaire. etc. The main target of the corruptionscan Tiny Belgium, whose Gross Domestic dals, in this source's view, is Defense Min Product exceeds that of sub-Saharan Africa ister Pavel Grachov, who is likely to be re (excluding the Republic of South Africa), Ca"as�o callsfo r placed soon. On Aug. 19, Grachov took the made a strategic move to secure its econom opposition to Cairo '94 unusual step of publicly denying a story that ic interests in Zaire, by mastermindingthe I had appeared two days earlier in Nezavisi appointment of a Zairean of Belgian blood, Marivilia C.."asco, a Mexican leader of the maya Gazeta, about a falling-out he had Joseph Leon Kengo wa Dondo, as prime Ibero-Amertcan Solidarity Movement with President Boris Yeltsin. Grachov has minister on June 14. Belgium, which refines (MSIA), addressed a conference of some come under attack for having failed to se Zairean copper, has acted as a predator on 200people iinGuadalajara, Mexico on Aug. cure adequate funding for the military. "A the Zairean nation since independence in 25, calling �or the exoneration of Lyndon lot of people are unhappy with him; they 1960. LaRouche $d his unjustly imprisonedasso regard his failure to have gotten enough Kengo wa Dondo, whose father is a Bel ciates, and repUdiating the malthusian money to be yet another humiliation for the gian of Polish origin and whose mother is agenda of t�e United Nations International military," said the source. Rwandan, was adopted by a Zairean soldier Conference: on Population and Develop from the Equator region. The appointment ment (CairO! '94). of Kengo wa Dondo, who had twice been In her keynote speech on "The Science RussiaDe fense Ministry prime minister, in 1989 and 1990, has dealt of Populatiqn Growth," Carrascosaid that a severe blow to the opposition and rein the U . N. is �viving the unscientifictheories denies corruption charge forced the powers of President Mobutu Sese of the V qnetian intelligence operative Seko. Giarnmaria brtes, the true father ofwhat we The Russian Defense Ministry on Aug. 24 After sustaining the Mobutu dictator term malthlljsianism. Ortes believed that the took the unusual step of denouncing the ship for 29 years, Belgium fell out with him Earth has a! "carrying capacity," a limit to Russian media for their articles on corrup and switched loyalties to his arch-rival, population which cannot be exceeded. tion in the Armed Forces. A statement re Etienne Tshisekedi wa Mulumba, for the This viewwas disproved in the Golden leased by the Ministry of Defense Press Of past four years, during which Mobutu torpe Renaissance, she said. As Lyndon fice accused the media of "provocative doed the democratization process. Belgium LaRouche lias proven, we are not running attempts to drag the Army into political showed increasing support for Tshisekedi, out of natural resources. Indeed, there is no score-settling and palace intrigues. " whose populist brand of nationalism had such thing �s "natural resources"; what we The latest article on corruption and mo made him a folk hero, and the only man who have is manrs creative potential. rale problems in the Armed Forces came on could challenge the dictator. He virtually Some of the youthful members of the Aug. 24 in Nezavisimaya Gazeta, written took over the capital, Kinshasa, while Mo audience, pfU1icularly from a group called by an Army sociologist, Col. Yuri Derugin. butu escaped to his hometown Gbadolite in the St. Xavier Society, had earlier proposed He contrasted the status of "fat cat" generals the north of the country, where he barri that a great march be held against the Cairo with embittered lower- and middle-rank of caded himself behind a sophisticated mili conference, ion Sept. 10 in Guadalajara. The ficers: "While a uniformed fat cat is on one tary arsenal. idea was ofllcially embraced by the Catholic pole, here is a fieldofficer in his wornArmy The Zairean nation was at a standstill, Church in tliecity , and tens of thousands of coat on the other. His wife has a hard time with inflation rates of about 1,000%, and people are eiKpectedto participate. 46 International EIR September 9, 1994 • ISRAEL i$ ready to leave the Go lan Heights to achieve peace with The MSIA issued a poster to organize and 10 Israelis should go to Iraq to start the Syria, Israeli �puty Foreign Minis support for the march, with a drawing of the process. ter Yossi Be.in said on Aug. 24. Holy Family by Leonardo da Vinci, with Darawshe added that he recently had a "There is an I�raeli readiness to pull text: "Stop the U.N. 's genocide. Defend the meeting with President Hafez al-Assad of out of Golan ajfter years of saying we family. No to abortion. No to euthanasia. Syria, who gave him a message for Israel: would not giv� back an inch," Beilin No to the U.N. 's one-worldism. No to con that Syria is ready for peace with Israel, but told a news cpnference in Norway. traceptive imperialism. Thero-American Israel has to withdraw from the Occupied "Once we sit down together in direct Solidarity Movement. " Territories. Darawshe said that this must be negotiations, t believe it would only done by 1995, since 1996 is an election year be a matter o� some months until we in Israel, and without a Syrian peace agree could sign an *greementwith Syria." Bhutto demands U.N. ment, Prime Minister Yitzhak Rabin could He added that: the extent of the with face trouble in the elections. presence in Kashmir drawal "woul4 be parallel to the level Darawshe also said that the recent criti of peace achidved." Pakistani Prime Minister Benazir Bhutto for cism of Palestine Liberation Organization chairman Yasser Arafat for closing some the first time has called for direct military • AUSTRA IA'S Young Liberals newspapers, was unjustified;he was just try l interventioninto Kashmir by the United Na adopted a regplution to legalize eu tions, in an interview with the French jour ing to get them to obtain the necessary per thanasia, at their conference at the mits, and they stopped publishing on their nal Internationale Politique . Arguing that end of Augus . The Young Liberals own because they didn't want to go along. � the "international moral code cannot be se arethe studen� wing of the opposition The conflictwas subsequently straightened lective," Bhutto said that "Pakistan is deter Liberal Party �d already have a poli mined to help the Kashmiris. If we do not out. cy of decriJJrlnalizing marijuana, consider all the conflicts on an equal foot making heroif/. available under medi ing, we will bring about terrorism and insta Ukraine wants airspace cal supervisiqn, and removing cen bility. To avoid it, we have to establish rules sorship on po�ography . which should be evenly applied." accord with Russia Kashmir, which has been divided be • THE Jo nANIAN government tween India and Pakistan since 1971, has The new Ukrainian defense minister, Valeri newspaper ATvJ ustour has published long been the target of British geopolitical Shmarov, has proposed a Russia-Ukraine an Arabic tr�slation of EIR's Aug. manipulations aimed at provoking war be agreement for "joint control" of airspace and 12 cover stOljy, "Behind Cairo '94: tween those two countries. borders, presumably as part of the package The Demogr.phic War Against Is Bhutto also expressed her bitterness that of agreements that would be signed during lam," by Has�an Ahmed and Amina the United States had withdrawn its decision the Sept. 29-30 summit in Kiev between ta Demba. ! to deliver already-paid-for F-16s to Paki Presidents Boris Yeltsin and Leonid Kuch stan, and simultaneously praised China for rna. Shmarov, a civilian, was picked by • GERM,QI' SPY CHIEF Paul its role toward Pakistan, saying: "Our coun President Kuchma on Aug. 26 to replace Miinstermand, head of the BND in try was able to develop, thanks to Beijing's Gen. Vitali Radetski, who opposed the poli telligence serVice, has retiredearly at assistance in the fieldof economic and mili cy of creeping surrender of sovereignty to the age of 62 ' amid speculation as to tary infrastructure. " Moscow. the motive. ccording to the daily In his firststatement as defense minister, KOiner Exp r1 s on Aug. 30, the real Israeli MP seeks Shmarov called for "closer military cooper reason for the move is the exposure ation" between Ukraine and Russia, speci of a.high-raqki.ng BND employee, dialogue with Iraq fying weapons maintenance and storage, the late K� Weiss, alias "Win spare parts, and "joint control" of airspace terstein," � a Stasi informant. Abdel Wahab Darawshe, a member of the and borders . The last proposal effectively Weiss, who cilied on Jan. 28, 1994, Israeli Knesset (parliament) and chairman gives Russia control of Ukraine's airspace had been a vdryclose collaborator of of the Democratic Arab Party , said on Aug. and borders, and is consistent with what Miinstermanq. 24 that it's time to end the embargo against Russia has already accomplished concern ! Iraq and for Iraq to join in the comprehen ing the outer borders of the Community of • NIGER� on Aug. 23 appointed sive Mideast peace process with Israel. Is Independent States in Central Asia and the new heads qf both the Army and rael "cannot neglect Iraq," and the two Transcaucasus. The leaders of the Russian Navy. Brig. Gen. Alwali Kazir was countries must "find a way to talk to each military and Border Troops have been de named the nef,vChief of Army Staff, other," he said, in a speech to the Foreign manding that this joint control be extended and Commodore Mike Akhigbe the Correspondents Association in Washing to the western CIS states, Ukraine and Be Chief of Nav" Staff. ton, D.C. He said that a group of 10 Arabs larus. EIR September 9, 1994 International 47 �ITillNational Anti-British foreign �olicy shift yielding success�s I by Edward Spannaus The historic cease-fireannouncement on Aug. 31 by the Irish • the Balkans, where the .S.-Germany-Vatican com Republican Army (IRA), which could bring an end to 25 bination has made possible the* lUliance between Croatia and years of British-provoked bloodshed in NorthernIreland, is Bosnia, ending the fighting between them which BritishIn the latest fruitof the ongoing strategic re-orientation of U . S. telligence had fomented to the tienefitof the Serbian forces; foreign policy away from the Anglo-American "special rela • Mexico, where the u.s overnmentand institutions, tionship" which has dominated U. S. policy for much of this in collaboration with the Vatic , stymied thedestabilization century. scenario which emerged with �e Chiapas " rebellion" at the Although the U.S. daily news media refused to cover it, beginningof the year. I President Clinton did announce the end of the U.S.-British "special relationship" during his visit to Germany in mid Cairo July. At his press conference in Bonn on July 11, Clinton The U.N. anti-popUlation c nference scheduled to begin announced a new, "unique" German-American partnership, Sept. 5 in Cairo, Egypt, will � considerably smaller than and consigned the old U.S.-U.K. special relationship to the anticipated, and the one-worldejrs� who have been planning it history books. The next day, London's Daily Express de for years are running up against major opposition to their clared: "Links with Britain No Longer So Important," while schemes from Christian and I$Iamic religious leaders and the London Guardian shouted: "U.S. Cuts British 'Special organizations. Less visible, b't equally important, is the Link'; Clinton TurnsHis Eyes to Germany," and commented agreement reached between Po� John Paul II and President that Clinton had "reduced the U. S. ' s special relationship with Clinton in June. Following thei�June 2 meeting, Clinton said Britain to a mere sentimental tie with the Mother Country. " that they had discussed "whe we agreed and where we They were right. Increasingly, U.S. strategic policy is didn't." Clinton declared that� Ihis administration does not carried out in cooperation with two new strategic partners: support abortion as a means o£ birth control, and he stated · the Vatican and Germany. The re-orientation is by no means his firmopposition to coerced pbpulation control as has been complete, and Bush administration policies continue on conducted in China. A few dafs later, Clinton indicated a "auto-pilot" in a number of areas; for example, Haiti. But the fundamental area of agreement! with the pope, when he de new emerging strategic combination has already borne fruit clared his opposition to "utopian world government" in significantareas including: schemes. • U.N. one-world government schemes around the In As statesman and economi$t; Lyndon LaRouche has re ternationalConference on Population and Development have peatedly pointed out, it is s\.1ch one-world government been significantlythwarted by common agreement between schemes, and not abortionand Fontraception, which arethe President Clinton and Pope John Paul II, despite their dis fundamental issues of the Cair9 conference. In an interview agreement on other matters; with "EIR Talks" on Aug. 31, Ij.aRouchesaid that the devel • the Middle East peace breakthroughs, which potential opments around the Cairo conf�rence are "a major setback" ly could bring to an end decades of British geopolitical ma for British agents such as U.Nf Secretary General Boutros neuvering in that region; Boutros-Ghali and that host of 1)ureaucratswhich the British 48 National ' ElK September 9, 1994 and the British Commonwealth have contributed to running Europe the United Nations and most of its non-governmentalorgani A major strategic shift in the bloody conflict in Bosnia zations (NGOs). Hercegovina resulted from the agreement between Croatia "They've taken a slap in the face," LaRouche said. "What and Bosnia signed in Washington oq March 18, following has happened is that forces led, in effect,among nations, by over a year of fightingbetween the two which was directly the United States, whose President is for the nation-state, fomented by British intelligence agents. Knowledgeable not some kind of imperial super-government, and also led sources have confirmedthat this agreement was the result of otherwise most prominently by Islamic forces, Christian the combined effortsof Germany, thei Vatican, and the Clin evangelical forces, by the Vatican, and by others, have ad ton administration. ministered a stinging, partial defeat to this Cairo conference. The U. S. special envoy who was i(lstrumentalin working It's never going to come off the way it was originally in out the agreement, Charles Redman, is now likely to be tended." named as the new U.S. ambassador 1jO Germany. The Aug. LaRouche identified this as a very important turning 30 Washington Times noted that this "jlppearsto reflect Presi point in history, in that the U.N. bureaucracy and what dent Clinton's view, expressed in BerJin in July, that Germa stands behind it is faced with a sort of collapse "because it ny-not France or Britain-is A�erica's key European has run out of usefulness, it has run out of hosts on which ally." The Times commented that Rfdman would have far to parasitize, it has bled us all pretty dry; and has run out more clout with Washington policYIJ!lakers than the current of ideas. It can no longer come up with any policies which U.S. ambassadors to Britain and Fraqce. give it any prospect for survival as a controlling force on On the occasion of the Aug. 31 cFremonies marking the this planet." finalwithdrawal of Russian troops frop1Germany , LaRouche identified the principal implication qf this as not the with Northern Ireland drawal of the troops as such, but rather the use of the occasion The Aug. 31 cease-fireannouncement by the IRA is ac to officiallyopen up new economic relations between Germa knowledged by observers to be largely the result of the role ny and Russia. LaRouche described !pis as a continuation of played by President Clinton. For this, he has received praise the policy which President Clinton �nounced in Bonn and even from political opponents such as Rep. Peter King (R Berlin in July-the policy of allying; with and cooperating N.Y.), who said on Aug. 31 that Clinton is the first U.S. with Germany for the economic dFvelopment of eastern President to go against the British on the issue of Northern Europe. Ireland. The White House acknowledged that this is some thing that the President "has worked continually on over the The Caribbean and Ibero-Arherica past year and a half." It is here that President Clinton I has faced some of the Niall O'Dowd, editor of the New York City-based Irish most intense destabilization operatiops directed both against Voice, said on Aug. 31 in Dublin that Clinton and a few his government,and against the governmentsand institutions others deserve tremendous credit "for not taking the British of Ibero-America. I point of view as the Reagan and Bush administrations have In his interview, LaRouche said tQat the British have been done." He added that the chances of the peace process work playing two games against the Clint�n administration in the ing are much greater with Clinton in the White House. Caribbean. One is through the Sao paulo Forum, of which Commenting on the truce, LaRouche pointed out that it Fidel Castro is a part (seeInternation�l, p. 30). This includes could not have been done by the IRA by itself, because the Cuauhtemoc Cardenas's PRD in Mexico; LUIS Inacio "Lula" British would simply have ignored them. "It could only be da Silva in Brazil; and the Causa R �adical Cause) party in done if a major power, like the United States, took a hand in Venezuela. LaRouche credited Clin�on with acting properly it," he said. "Otherwise, the British were going to keep that to neutralize the destabilization thrlfat, by derailing the at thinggoing forever. " tempt to floodFlorida with Cuban refugees. As for the Mexi can elections, LaRouche said on A1Jg. 25 that Clinton and China various U.S. institutions played a defisive role in preventing Another area where LaRouche identifiedClinton as buck the political chaos and violence whidh was expected to result ing the British is with respect to China. The success of the from the August elections. The averting of civil war could trade mission to China led by Commerce Secretary Ron not have happened, LaRouche said, unless someone in the Brown (see Economics, p. 4) also represents a shift in U.S. United States had said, "Leave this place alone." policy away from what LaRouche called "theGeorge Bush While Clinton still faces major idestabilizations both at nonsense." The United States and Britain are "completely, home and abroad, it is clear that h� has begun to buck the directly at odds" on this issue, LaRouche said. He explained British in a number of areas, and that British geopolitics and that the British policy is for civil war in China as soon as one-world government schemes ar'1 in the process of being rejected as the fundamental axioms qf postwar U.S. strategic Deng Xiaoping dies, whereas the U.S. policy is for peaceful I development of China through economic cooperation. policy. It's no wonder that Clinton' � enemies are enraged. EIR September 9, 1994 National 49 they were caught redhanded, ithey were let off by the actions of a judge whose jury instructions virtually directed an ac- quittal. i Smith's efforts to have his rights restored gained interna tional attention. They were tJte focus of several newspaper and magazine articles and t�levision shows in the United Du Pont Smithdeclared States, Europe, and Thero-America, where Smith and his wife travelled to bring his casle to the public. 'competent' by Pa. judge ! In a stinging rebuke to the enemies of statesman Lyndon 'An end to injustice' LaRouche , a Pennsylvania judge on Aug. 30 terminated an "This brings to an end, I /lope, over nine years of injus incompetency order against Lewis du Pont Smith, a tice, a shameful travesty of justice, a total sham," Smith LaRouche associate and heir to the Du Pont fortune, and said. "The people involved in this assault on my dignity and restored his control over his financialestate . constitutional rights-princiWlly, the ADL and CAN, which An elated Smith met the press the next day outside the constitute an anti-LaRouche tult, as well as representatives same West Chester courtroom where a corrupt judge had in the media-have failed and have failed miserably. made him the first U. S. citizen to have ever been declared "Not only have they fail¢d to break my spirit to speak "mentally incompetent" for his political beliefs. Flanked by out, to run for political office, Imd to associate with LaRouche his wife Andrea, Smith said, "This day represents a triumph and his political movement:' he said, "they have totally of justice for my wife and me and for all those who fight failed to destroy LaRouche aJild the growing influenceof his against political corruption and persecution." international movement. The order, signed by Dauphin County Judge William "As a testament to their f�ilure , I present to you the full Lipsett, set aside an order entered nearly nine years ago by page advertisement which apt>earedin the Washington Post West Chester Judge Lawrence Wood, a man firmly in the du on Aug. 11," Smitb said. "Ovbr400 prominent citizens from Pont family's pocket, who had ignored all evidence of all over the world signed the ¥, calling on President Clinton Smith's manifest competence. It also comes almost a month to exonerate LyndonLaRouc �e, based on six volumes of new after former Loudoun County, Virginia Sheriff's Lt. Don evidence submitted by LaR�uche's attorney, former U.S. Moore, the operative of the Anti-Defamation League (ADL) AttorneyGeneral Ramsey Chirk , evidence which documents and Cult Awareness Network (CAN) who was hired by that the U. S. government kn�w at all times that LaRouche Smith's father to kidnap Lewis Smith in 1992, submitted and his co-defendants were iI1nocentof the false charges for court papers showing that Moore himselfwas mentally unsta which they were convicted. 1bat evidence is gathering dust ble. Moore , along with his fellow kidnapper-for-hire Galen at the Richmond, Virginia U .$. Court of Appeals, while five Kelly, could not be reached for comment on the Lewis Smith associates of LaRouche are �till in prison serving barbaric case; both are serving sentences in federal prison for their sentences-in one case up to V7 years ! . . . role in another kidnapping. "Two of the leading thugs who were an integral partof the Smith's family, acting in concert with the ADL and its ADL-CAN govemment-conn�cted apparatus that railroaded CAN operation, moved to strip Smith of control over his LaRouche and co-defendantsl to jail, were Galen Kelly and financial estate in 1985 after he had contributed $212,000 to Donnie Moore," Smith continued. "Both are now in jail as publish Dope, Inc., a book on the illegal narcotics trade convicted felons serving prisop time for kidnapping and relat which identifiedthe role of powerful British-linked oligarchi ed charges. While they 'beat the rap' in the kidnapping case cal families and operations such as the ADL in running and against my wife Andrea and �yself, justice finally caught up protecting that trade. The book, which had been commis with these punks, who think they're above the law. As Lyn sioned by LaRouche, shows the role of these families in don LaRouche said, sometimes . the stomach of justice turns laundering the proceeds of upwards of $1 trillion annually in slowly; it seems to be turning faster these days. illegal narcotics traffic. "As for myself, I am no different than I was nine years After Judge Wood's ruling, the 36-year-old Smith was ago before I was dragged into k:ourt, except I am a little older stripped not only of control over his fortune, but was denied and wiser ....My character and integrity have not been his right to vote and to marry, without consent. He was able stained-unlike some other urlfortunatepeop le. I am in good to marry Andrea Diano only through the direct intercession health and happily married, ankIdoing what I enjoy the most. " of the Vatican. During this time, Smith and his wife were Smith said that he is now a resident of Minnesota, where harassed by his family. This culminated in the 1992 "Kidnap he is running for attorney gen¢ral in the Democratic-Farmer pers' Inc." plot, exposed in the book Travesty, for which Labor Party against Hubert li. "Skip" Humphrey III, the Moore, Kelly, the lawyer Robert Point, and Smith's father, incumbent, whom Smith de$;ribed as "arguably the most E. Newbold Smith, were indicted in federal court. Though corrupt state elected official irl the United States." 50 National EIR September 9, 1994 Interview: Lawrence K. Freeman LaRouche Democrat challenges ADL, drug lobby in Maryland electio� Lawrence Freeman is a gubernatorial candidate in the Sept. The problem is that over the last 20 years, some of the nation 13 Democratic primaryfo r the state of Maryland. He is al leaders have tried to tum the party into an amalgam of known to readers of EIRfor his work on Africa, including a environmentalists, New Agers, femin�sts, and in some cases recent series of articles and interviews conducted during a outright genocidalists, who want to get rid of a few billion visit to Nigeria. peoplebecause they believe the world is overpopulated. We LaRouche Democrats stand for econdmic progress based on EIR: Mr. Freeman, you filed to run for governor of Mary new technologies, emanating from ntw scientific discover land back in March of this year, and the primary is almost ies. We are pro-growth, pro-science, nd pro-people, which here, on Sept. 13. How do you assess the campaign so far? distinguishes us clearly from the New Age liberal crowd that Freeman: We have accomplished a great deal. I am heading is tryingto take over the party. r- i up a slate of over 50 candidates who are running for over 70 offices in the Democratic primary. We have more grassroots EIR: How has your message been received? volunteers than any other campaign. Our people are out every Freeman: At every forum, televisipn show, news inter day , and especially on weekends, distributing tens of thou view, and radio show, I have outlinedlthe imminent financial sands of copies of my program, of New Federalist newspa crash that Mr. LaRouche has foreca$t, and have displayed per, and over a quarter of a million pamphlets calling for the The LaRouche-Bevel Program To Save The Nation, which exoneration of Lyndon H. LaRouche, Jr. I have spoken at was published during Mr. LaRouc�e's 1992 presidential nearly 40 gubernatorial forums , and the other candidates campaign. My campaign is unique in (hat I want to complete running on my slate are out virtually every night, addressing ly reverse the insane "post-industrial�' economic policy that all kinds of constituency groups. We have had an enormous has driven the Maryland economy virtually into bankruptcy. impact on the Democratic Party and have won grudging re My program is to rebuild, re-industrialize Maryland, and spect from many people inside the party and other candidates, put tens of thousands of people to work in manufacturing, for our defense of President Clinton from the attacks by the agricultural, and infrastructure areas of employment. Before press empire of British intelligence's Hollinger Corp. We our elected officialsadopted this fantasy of basing our econo have really scared the hell out of the local financial-political my on dead-end service jobs, tourisII1,and gambling, Mary establishment, who have used all kinds of dirty tricks to keep land used to be a strong, industry-based economy. the voters from knowing about my candidacy, they even As a result of the wrong politiq:al decisions, we now deployed four goons one night to physically keep me out of have more and more people living in poverty. Baltimore is a a forum. But they haven't been able to stop us from reaching complete disaster, and every year we are faced with huge out to the population, and everybody involved with our slate state budget deficits. Some people ar;e predicting that in the has learned a great deal about organizing, and had some fun next fiscal year, Maryland will have over a $1 billion deficit. as well. This is all due to the shrinking tax base, which produces less revenue every year leading to higher taxes and more EIR: The press coverage of your campaign has called you a cutbacks. Several of the other candidates for governor, after LaRouche Democrat. What does that mean? listening to me at these forums, begat talking about the need Freeman: First of all, I was the firstgubernatorial candidate to have more manufacturing jobs instead oflow-paying ham to file as a Democrat, and all the candidates on my slate burger-flippingjo bs. have identified themselves as LaRouche Democrats. This is because the Democratic Party still represents, in its base, EIR: How have people responded to your efforts to have those constituencies that make up a majority of working peo Mr. LaRouche exonerated? ple, in particular the trade unions, farmers, the civil rights Freeman: Nobody has responded dfrectly on that issue, al layers, other ethnic minorities, and the poor and have-nots. though several Maryland politicians have said that they will EIR September 9, 1994 National 51 Lawrence Freeman, at right at a crab fe stival on the Eastern Shore of Maryland, is a LaRouche Democrat seeking the party nomination fo r governor. He is campaigning to reindustrialize the state . sign the call for Mr . LaRouche's exoneration after the elec syringes along with nine COIldQ.ms to drug addicts who tum tion. What is interesting is that the overwhelming majority in their used needles. Along w the drug and sex parapher- of people whom I talked to were quite interested in Mr. nalia, they receive a card with identification number that LaRouche's ideas. However, the slander campaign against stipulates that they cannot be for using these needles Mr. LaRouche is still having an effect, even if it is a decreas to shoot dope into their veins. ing one. Let me give you a couple of examples. When I spoke The phony excuse being is that this will stop the before 25 representatives of the Maryland AFL-CIO unions, spread of AIDS infection, Mayor Schmoke knows is many people there agreed with the LaRouche-Freeman pro a cynical lie. Baltimore, as as the state of Maryland, gram, but still said I was unelectable because of my associa have done absolutely nothing halt the spread of AIDS. tion with LaRouche. This gave me an opportunity to describe When we organized a forum the Moorage (un)Christian the role of the Anti-Defamation League of B'nai B'rith Center for myself, Dr. Abdul Muhammad of the Abun (ADL) and Henry Kissinger in railroading Mr. LaRouche dant Life Clinic of Washington D.C., and a few local minis into prison. But the pragmatism of the unions prevailed. At ters, to expose Schmoke's . program to help spread many events, somebody would usually come up to me or a drugs in the city, Mayor ""'''�.J''"'' , the ADL, and pro-drug campaign worker and say, "You have the best ideas, but you forces in the city forced ....a of our room. The can't get elected." forum went on anyway, but it people got. EIR: I understand that your campaign also made a major issue of Baltimore Mayor Kurt Schmoke's needle-exchange EIR: Are you satisfied with your campaign has accom- program. plished? Freeman: Yes, for me this is a fundamental moral issue as Freeman: Yes, I am very happI y at what we have been able well as a political one. I was the only candidate to come out to do. Given the fact that the Baltimore Sun, Washington calling for Schmoke's needle-exchange program to be shut Post, the other major media, along! with League of Women down, and was mildly surprised that no other candidate Voters of Maryland, the Greater Baltimore Committee, and would even talk about it. As a result of intense lobbying by the whole junior financial elite tried to censor my campaign Mayor Schmoke, the darling of the Drug Policy Foundation, from the voters, my friends Ind I did a fine job. I think and billionaire "derivatives king" George Soros, the Mary many more people are now open to learning about Mr. land state legislature passed a law to have Baltimore run a LaRouche's program to reorga6ize the financial system, and test program. It is being run by the city health department that is good news, given how close we are to a monetary and Johns Hopkins School of Hygiene, to hand out nine clean collapse. 52 National EIR September 9, 1994 ADL's friends nabbed again fostering neo-Nazi terror by Jeffrey Steinberg I Yet another governmentintelligence service long known for placed an informant who 'had his finger on the pulse' of the its intimate links to the Anti-Defamation League of B'nai Heritage Front, because any informa�ion he obtained could B'rith (ADL) has been caught masterminding a "neo-Nazi" be used against the organization in a trial." Dimant's state gang, this time in Canada. ment appeared to ignore the fact that Bltistow, and by implica On Aug. 14, 1994, the Toronto Sun revealed that Grant tion the CSIS, had actually created the Heritage Front out of Bristow, a well-known Canadian rightist who founded the whole cloth. However, a review ofthd ADL's own notorious white supremacist Heritage Front, had been an agent provo involvement in creating and deploying:neo-Nazi and Ku Klux cateur for the Canadian Security Intelligence Service (CSIS). Klan (KKK) terrorist cells to filltheir tjundraising coffers and Founded in 1989, by 1993, the Front had attracted an esti build their own credentials as "extremist experts" makes it mated 700 skinheads and other assorted radicals to its ranks. clear that Dimant was reacting to the fact that yet another ally According to the Sun, "over the past couple of years, he of the ADL had been "caught in the *t," in much the same [Bristow] threw himself into running a small unit of the front way that the ADL itself was nailed inStigating neo-Nazi ter that specialized in a dirty-tricks campaign against anti-rac rorist violence in Californialast year. . ists." The unit apparently conducted break-ins to offices of groups critical of its activities, and orchestrated harassment San Francisco probe campaigns, often pinning the operations on other "anti-rac Readers of EIR will recall that in December 1992, the ist" organizations. San Francisco police raided ADL offi¢esin Los Angeles and All the while, Bristow was receiving at least $50,000in San Francisco as part of a probe into ADL spying on tens of annual salary from CSIS. Some of this money apparently thousands of North American politicM, religious, and civil went to Bristow's extensive travels, which enabled him to rights activists. Although the year-long probe was eventually forge links to other white supremacist groups. Canadian au dropped by San Francisco District Att()rneyArlo Smith, after thorities are probing Bristow's links to a neo-Nazi interna he came under intensive political pressure from Bay Area tional organization which was apparently supported by the ADL allies and from ADL-linked career bureaucrats at the efforts of the Canadian Heritage Front. Bristow was ostensi Department of Justice, the investigatibn turned up extensive bly employed at a customs brokerage house and may have details about the ADL's massive illegal spying and dirty been instrumental in the production and distribution of neo tricks apparatus. Nazi literature around the world. The probe began in 1990 when the FBI discovered that a Bristow's activities for CSIS were reportedly exposed by West Coast ADL employee, Roy Bull�ck, had sold classified Brian McInnis, an aide to former Solicitor General Douglas FBI documents on the Nation of Islam to agents of the South Lewis, who claims that he leaked a copy of a classifiedCSIS African secret police. It later mushr(j)omed into a probe of memorandum, stamped "read and destroy," documenting League agent provocateur operations inside the White Aryan Bristow's employment, to a reporter for the Toronto Star. Resistance (WAR). McInnis was subsequently arrested by the Royal Canadian As the result of a court-ordered! wiretap of Bullock's Mounted Police (RCMP) and could be charged with violating home telephone, the FBI learned in {j)ctober 1992 that Bul Canada's Official Secrets Act. However, the Toronto Globe lock and another ADL "fact finder,'l David Gurvitz, were and Mail on Aug. 27 claimed that "senior Front members soliciting a violent attack against ani employee of the Los now believe it was Metro Toronto Police who told the Toron Angeles Simon Wiesenthal Center by WAR. The ADL had to Sun that Mr. Bristow was a CSIS mole afterthey grew sick planted a felon, whom the League code-named "Scumbag," of him stirring up problems in their jurisdiction." inside the WAR hierarchy, and Bullock and Gurvitz were It took the B 'nai B'rith less than 48 hours to leap to the overheard giving "Scumbag" the license plate number and defense of Bristow and CSIS. In a bizarre statement pub home address of their target, Rick Eaton. They claimed that lished in the Aug. 16 Globe and Mail, Canada B'nai B'rith Eaton had tried to infiltrate WAR meetings and instructed spokesman Frank Dimant "praised CSIS if it had indeed "Scumbag" to tip offother WAR members about the "Zionist EIR September 9, 1994 National 53 spy." Bullock obtained the confidential data on Eaton the ADL had enjoyed a long-term relationship with the feared through San Francisco Police Inspector Tom Gerard. Gerard Stasi secret police service. Ip February 1993, Germany's was apparently one of a number of local law enforcement leading experton East Germa� secret police operations, Mi officers throughout the country who worked for the ADL, chael Wolffsohn, told the W4shington Post that he had re illegally providing classified police and other government viewed evidence in the Stasi �chives proving that the East data on individuals on the ADL's "enemies list." Germans had been behind th� postwar buildup of the neo The discovery of the plot against Eaton put the FBI in a Nazi underground in the We�t. Wolffsohn, an Israeli-born very uncomfortable situation. Not only had the FBI for de German-Jewish military histdrian, told the Post that "dis cades collaborated with the ADL in similar infiltrationopera banded" Stasi cells continue� to run the German neo-Nazi tions against a wide range of domestic U.S. groups, but scene even after the reunification of Germany. This effort, Bullock himself was also a paid operator for the FBI, courtesy which he documented in a series in the FrankfurterAllgem of the San Francisco ADL office. Even more embarrassing, eine Zeitung and in a book-l¢ngth expose, was abetted by "Scumbag" was being jointly run by the ADL's Bullock the ADL, particularly througb the efforts of World Jewish and special agents of the Treasury Department's Bureau of Congress (WJC) head Edgar Bronfman, an ADL vice chair Alcohol, Tobacco and Firearms (ATF) ! Although the ATF man and leading fundraiser. It'win Suall was a close collabo agents were apparently oblivious to the ADL's involvement rator of many of the Stasi's leading agents and assets inside with "Scumbag," ATF nevertheless benefitted from the de the European Socialist International. briefing sessions with him at an ATF office. The Wolffsohn charges were drivenhome recently, when The FBI eventually concluded that the Eaton assault the Kainer Express of Aug. 129 revealed that Paul Miin would be a disaster, and it later came out that the Bureau stermann, the deputy chief of Germany's foreign intelligence had sat on the advance wiretap evidence. FBI agents alerted service, BND, took early retilrement this year when it was Eaton and the Los Angeles Wiesenthal Center, and then con learned that two of his top agents had been longtime Stasi fronted ADL officials in Los Angeles about the Gurvitz operators. Bullock operations with "Scumbag." Gurvitz, a new employee, was quickly fired. However, Caught 'red-handed' senior ADL officials, including chief Fact-Finding Division Not only has the ADL been caught running a largepiece head Irwin Suall and his Washington, D.C. crony Mira Lan of the worldwide "neo-Nazi" apparatus in partnership with a sky Boland, threatened they would quit if any action was number of former East bloc a1nd western police and intelli taken against Bullock, a 25-year veteran of ADL covert oper gence services. The League hilsrecently come under heavy ations. Bullock was kept on. Suall wrote a letter, which was public attack for its report OQ the so-called religious right, found by San Francisco police in Bullock's personal papers, which has driven many of t� ADL's former allies into a praising him as the "best" undercover sleuth they had ever frenzy. The book-length repoI!t, The Religious Right: An As employed. sault on Tolerance and Pluralism in America, was written in The FBI decided in November 1992 to cover up the conjunction with a number of unsavory groups, including ADL's criminality by focusing the probe instead on San Fran People for the American WaYland Americans United for the cisco cop Gerard. However, when the FBI went to the San Separation of Church and State, a front group for the South Francisco Police Department's Special Investigations Divi ern Jurisdiction of the Scottisb Rite Freemasons. It assailed sion and confronted the chief of the unit on Gerard's collusion Christian conservatives as a ¢ollection of anti-Semites and with the ADL, the SFPD turned around and launched an "authoritarians. " all-out investigation to determine the extent of the ADL's Since the release of the report, many Christian groups criminal contamination of the department. Once the police that had formerly been closely allied with the ADL have launched a serious probe of ADL corruption, the FBI joined published attacks against the League. The two most promi with OOJ officials to attempt to sabotage the effort. A year nent of these were published by the Christian Coalition, head later, the San Francisco police had amassed evidence that the ed by Pat Robertson, and by the Free Congress Foundation, ADL was running a massive agent provocateur and infiltra a Washington, D.C.-based group headed by Paul Weyrich. tion effort against nearly 1,000 domestic political groups Both attacks document the ADL' s use of guilt by association, from coast to coast. Other ADL operators, including Jimmy fake quotes, and unreliable s<)urces in painting a picture of Rosenberg of the ADL's New York City national headquar conservative Christians as a collection of extremists. The ters, were unearthed as top figures in a large number of Ku Weyrich report concluded: "AlDL may have a self-interestin Klux Klan and neo-Nazi organizations. worsening the picture of anti-Semitism and creating new enemies when in reality and on the basis of the real evidence, ADL collusion with the Stasi the old ones may have receded!. Political power and fundrais Following the collapse of the communist regime in East ing often depend on the existence and perception of en Germany, mountains of evidence were surfaced showing that emies." 54 National EIR September 9, 1994 Profile: Carl Rowan The career of a hired gun, in his own words by Anton Chaitkin , Newspaper columnist Carl T. Rowan recently wrote a series itself made headlines. The day the article was released, Aug. attacking National Association for the Advancement of Col 28, 1967, the New York Times gloated that King had been ored People Executive Director Benjamin Chavis as a thief "attacked by a fellow Negro" who w*s the "former director and adulterer. Rowan's nationally syndicated articles of the United States Information Agency" (USIA) and was brought to a successful conclusion the campaign of the Anti "now the writer of a column appeaIling in more than 100 Defamation League of B'nai B'rith to stop Chavis and the newspapers." The following are exaerpts from the Digest NAACP from uniting with blacks such as Minister Louis article: Farrakhan and the Nation of Islam. "Last April 4, the Rev. Martin iLuther King stood in After the NAACP executive board fired Chavis on Aug. New York City's Riverside Church llDd delivered the most 20, Chavis said, "I think it's a very sad commentary that a scathing denunciation of U .S. involv�ment in Vietnam ever journalist like Carl Rowan would engage in a campaign to made by so prominent an American.: . . . Radios Moscow assassinate my character as he joined in a campaign when and Peking picked up King's words �d spread them to dis Martin Luther King, Jr. was alive to assassinate his char tant capitals. In the White House, a presidential aide shouted, acter." 'My God, King has given a speech on Vietnam that goes Chavis was referringto Rowan's rolein the effort, largely right down the commie line!'. . . orchestrated by the Federal Bureau of Investigation, to de "Civil rights leaders wrung �eir hands and began to plan fame and destroy Dr. King. Typical of the FBI's actions was steps to take the already-splintered i movement for Negro a directive sent by the Bureau to all FBI fieldoffices on March equality out from under the onus of King's broadside .... 4, 1968, ordering a concerted offensive to "prevent the rise The directors of Freedom House calle EIR September 9, 1994 National 55 policy .... [Various Negro leaders] pleaded in vain with publicly against [President Jbhnson's] Vietnam policies. I King not to wade into the Vietnam controversy. called King in Atlanta. I leveJed with him completely about "Why did King reject the advice of his old civil rights the documents and the charg+s that were crossing my desk. colleagues? Some say it was a matter of ego-that he was I told him how the Preside�t was being bombarded with convinced that since he was the most influential Negro in the slanderous materials ....N �ne [of King's concerned col United States, President [Lyndon] Johnson would have to leagues] could tell him, in ugly detail, as I did, what Hoover listen to him and alter U. S. policy in Vietnam. Others revived was saying about him." a more sinister speculation that had been whispered around Rowan wrote, "The FBI produced reportsas to which of Capitol Hill and in the nation's newsrooms for more than two King's speeches had been written, or heavily influenced, by years-talk of communists influencingthe actions and words his 'communist' advisers. Fr m time to time the documents �I of the young minister. This talk disturbed other civil rights brought to me mentioned the: possibility of Dr. King 'being leaders more than anything else. killed by one of the husbands�he has cuckolded.' "I report this not to endorse what King and many others "I considered this ominocts and a possible setting up of a will consider a 'guilt by association' smear, but because of motive for someone to kill K�g. " the threat that these allegations represent to the civil rights This was written many Y4arsafter King 's assassination. movement. When King was simply challenging Jim Crow, But when Rowan himself �w this dirt at King, he did not murmurings that he was associating with, or influenced by, tell the public that it was part pfa murder plot. 'enemies of the United States' had only limited impact. Most i congressmen and editors knew that American Negroes did Rowan as a spook not need a communist to tell them that they disliked [abuses How did the "document� and charges" get to Rowan's of their rights]. But now that King has become deeply in desk? i volved in a conflictwhere the United States is in direct com U.S. Sen. Harris WoffoJld wrote in his 1980 book, Of bat with communists, the murmurings are likely to produce Kennedys and Kings, that ron Director J. Edgar Hoover powerfully hostile reactions. . . . "directedthat 'friendly' repor1ters be furnishedquestions that "A recent Harris survey showed that almost one of every would embarrass King. An �ditorial ... which criticized two Negroes believes that King is wrong-and another 27% King for his stand on Vietnru!n, was given to 'friendly news reserved judgment. sources' in order to 'publiciz� King as a traitor to his country ". . . This opposition to King . . . suggests that . . . most and his race' and, according �o the FBI covering memoran Negroes still think of America as their country and do not dum, 'to reduce his income.'I" want to seem unpatriotic .... In addition to his journ�lism, Rowan has long been a "Martin Luther King has alienated many of the Negro's trusted insider in that sectionJ of the intelligence community friends and armed the Negro's foes, in both parties, by creat which is an extension of the :$ritishgloba lists. ing the impression that the Negro is disloyal." Rowan boasted in his a�obiography: "My job and my On April 8, four days after King's Riverside Church participation in cabinet and l'iational Security Council meet speech, President Johnson's press secretary reported private ings gave me a broad 'need to know' about things that had ly that he had just spoken with Rowan, who said that he was never been entrusted to any bljackoffici al-and only to a very "exploring the Martin Luther King matter. He said everyone few white ones. i in the Civil Rights movement has known that King has been "Each morning I got a �pecial supersecret intelligence getting advice from a communist. " briefing.. ..[The briefing ibcluded] some titillating gossip Then, on April 14, in his nationally syndicated column, about the health and the mis*sses of world figures. Rowan tried to give credibility to this FBI filth: "Key mem "I noticed in March of 19«P4 thatthese briefingscontained bers of the House and Senate have been told by the FBI an extraordinary number of references to Dr. King and his that King is listening most to one man who is clearly more private activities." I interested in embarrassing the United States than in the plight Among these documents !was a 13-page anti-King paper of either the Negro or the war-weary people of Vietnam." A entitled "Communism and t� Negro Movement," prepared few months later, in the Reader's Digest article, Rowan did by the FBI's joint British-U .�.-run Division Five. On Dec. not even mention the FBI. 7, 1964, it was distributed tQ Secretary of State Dean Rusk, Defense Secretary Robert M¢Namara, CIA directorRichard Setting up a murder plot Helms, Attorney General Nicholas Katzenbach, USIA Di Rowan did not inform the public that the "communist" rector Carl Rowan, three mtlitary intelligence offices, and charges were lies, designed to stop King's political activity. the National Science Foundation. But did Rowan himself believe that the charges were true? Carl Rowan is a native �f rural Tennessee. He stresses In his 1991 autobiography, Breaking Barriers, Rowan the unbearable repulsivenes, of his early poverty, and the said that he telephoned Dr. King after the latter "began to rail thrill and satisfaction of beint finallyaccepted into the ranks 56 National EIR September 9, 1994 of successful, powerful men. After studying journalism at and House Speaker John McCormack �ll concurred. In that the University of Minnesota graduate school, Rowan was meeting only Sen. Mike Mansfieldwa � opposed." hired to write for the Minnesota Tribune. Publisher John Rowan explains how he worked to prepare the ground for Cowles, whom Rowan viewed as his savior from the lower that escalation: ! depths, was a cousin and political collaborator of Thomas "In 1964, Johnson asked me to �company Rusk and Lamont, the chief of J.P. Morgan bank and the notorious McNamara to Saigon to reassess the :state of the war and sponsor of Mussolini and Tojo. make recommendations as to the next QOurse of U. S. action. . ..On my returnto Washington, I w�te President Johnson Rowan's 'bold use of eolor ' the following memorandum on April 21, 1964: 'During the This is how Rowan demurely describes his early work as recent trip to Saigon with Secretary kusk, I came to the a prostitute in journalism, a peddler of his black skin: conclusion that the weakest part of the rwar operation . . . is "I got a telephone call from John Cowles ... [who] in the fieldof information and psychological warfare.' " said, 'Carl , you know there's going to be a mighty important According to Rowan, he once cafdidlY told President conference of Asians and Africans in Indonesia in April. Johnson what kind of a tough job he h� to do as head of the . . . I know you just got home, but what would you think worldwide propaganda effort for the Vietnam War: of going back to cover that conference? ...Dulles called "People need and want soap and cornflakes, so they are me to say it would be a service to the nation if you were easy to sell. It's just a matter of which brand they buy. But there. Allen says you have access to the key people who nobody wants war, or napalm bombs, oJ- having their villages will be there well beyond the access available to anyone in wiped out, or seeing thousands of GIs f- their women. I'm the foreign service .... trying to sell what people wouldn't bU)fat a fire sale." " 'Mr. Cowles,' . . . I said rapidly, 'I could never pass For this service, USIA Director Carl Rowan was awarded up a chance to cover a meeting as important as this one the "Communications Award" of .he Anti-Defamation will be .. .. League of B 'nai B'rith. "I went into the kitchen and said . . . 'Christ, I think the On July 8, 1965 , Rowan resigned !from government for Dulles who called Cowles was Allen, the head of the CIA, "private and family reasons." With hi� "supersecret" intelli not John Foster, the secretary of state. Damned if I want gence channels, Rowan continued his �sychological warfare peopleto think I'm working for the CIA!' work as a private journalist. I "I got so preoccupied in the rush to finish my series Martin Luther King, Jr. was shot �ead exactly one year on Southeast Asia that I forgot my intentions to follow up after giving the speech which Rowan tPldthe world seemed discreetly and determine just which Dulles wanted me at to be communist-scripted. After Ki�g was dead, Rowan Bandung .. ..Ah yes, whichever Dulles telephoned Cowles tried to distance himself from the FBIi In his autobiography knew damned well that while the advantages of being a black 23 years later, Rowan wrote, "My gut �old me in April 1968 journalist were not universally great, they could be of real that no lone man showed up in Mem�is on his own to kill importance at an Asian-African conference. I was able to King. Deep in my heart I felt, based �n all the intelligence obtain access to key people, and some of it did come from data that I had seen while at USIA,I that someone in the the bold use of my color." U.S. government had put out a contr�ct to 'neutralize' this John Cowles and his brother Gardner Cowles, Jr. , the black preacher-'neutralization' bein* almost synonymous World War II director of domestic propaganda for the Office with a death sentence in the argot of �he intelligence com- of War Information, were Anglophile advocates of the classi munity." I cal British Empire-style of psychological warfare. After 13 Rowan wrote that his "suspicions' intensified" when he years of such "bold" work for Cowles, Rowan joined the learned that the FBI had planted a 1'telephone tap and a State Department in 1961. AfterKennedy 's murder, Rowan microphone . . . in the home of Elija!i Muhammad to listen became ambassador to Finland, and then director of the U . S. in on conversations of the late leader of the Black Muslims," Information Agency. i.e., the Nation of Islam. ! In 1988, Rowan, a zealous gun-coQtrol advocate, shot an The Vietnam War intruderat his Washington, D.C. hom¢ with an unregistered In this post, Rowan was allied to the McGeorge Bundy gun. Rowan demanded that he not b� prosecuted-the gun Henry Kissinger faction which had immediately escalated was legal, he said, because it belong�d to his son, an FBI America's self-destructive Vietnam intervention over John agent. Kennedy's dead body. Now that Rowan is working to ljIreak up the working Wofford reported on the 1965 meeting convened by Bun relationship of the civil rights comm�nity with the Nation dy and McNamara to push for the beginning of bombing of lslam, our suspicions have intensifi¥that Rowan is under North Vietnam: "McNamara, his deputy, Cyrus Vance, contract with his handlers to neutraliae black leaders in the George Ball, William Bundy, Douglas Dillon, Carl Rowan, United States. EIR September 9, 1994 National 57 Book Reviews I The Confederate conspiracy Iof Lords Palmerston andRu ssell by Stuart D. Rosenblatt issue of official British recogn�tionof the South. Recognition would bring with it both logistical aid and a shift in the balance of power on the American continent. Alarm signals Union In Peril: The Crisis overBritish went off in all Union quartersJ Intervention in the Civil War "Union apprehensions re8arding recognition appeared by Howard Jones justified. The prime minister, �rd Palmerston, was a peren Universityof North Carolina Press. Chapel Hill. nial arch-critic of America. Ndw 76 years of age, he remained N.C. . 1993 an impressive figure despite thinning white hair, failing eye 300 pages. hardbound. $39.95. sight, and a faint stoop in his -Walk that belied his height and still sharp mind. He had bee� foreign secretary during the 1830s, when England threatened war with America over the Howard Jones's Union in Peril should be required reading Alexander McLeod affair. Both in and out of office during for President Bill Clinton as he embarks on his still tenuous the years afterward, Palmerston had been conspicuous on the "break with England." There should be no illusions as to the international scene, never failfug to promote British interests lengths to which the British will venture to maintain their by exploiting the weaknesses of rivals. He disliked Ameri control over the United States today, just as there was no cans in general and [U . S. Sec�tary of State William] Seward limit over a hundred years ago (1860-65) when the British in particular; nor did he approve either of American republi tried for the third time to reconquer their former colonial can government or of its outspokenly Anglophobic Irish possession. Jones's book clearly delineates the ugly anti American journalists. In foreign affairs he believed that the American, pro-Confederate intentions of British foreign poli only way to undermine America's claim to manifest destiny cy during the U.S. Civil War. His work is a vivid portrayal was to make bold displays of British strength. . . . of the "Venetian" methods of Britain's Prime Minister Lord "Unknown to Americans, ,Palmerston had already toyed Palmerston: divide and conquer, "let them fight each other," with the possibility of extending recognition to the South. and support for the "national rights of self-determination of Less than two weeks after South Carolina announced seces an oppressed people"-in this case, the slave-holding South. sion in December 1860, he considered a complicated ar Unfortunately, Union in Peril does not explore the role rangement that involved the offer of recognitionand the use of Czar Alexander II and Russia in preserving the American of his longtime opposition to the slave trade as a lever to Union, but instead credits the legalistic arguments of British prevent the South from reopei)ing the practice. . . . Palmer Secretary of War George Lewis for preventing Britain's entry ston did not abandon the plan until the summer of 1861." into the conflict. At the outbreak of hostilities, British Foreign Secretary Nevertheless, we have an excellent portrayal of the evil Lord John Russell declared his nominal opposition to separa minds at work in Victorian England. Jones captures the dy tion; but he soon recantedand $tated he would hold all support namic operating among Palmerston, Gladstone, and their for the Union in abeyance. Jones then describes Russell's accomplice, Lord John Russell, grandfather of the 2Oth-cen Mazzinian1 world view: tury's evil man, Lord Bertrand Russell. "A Whig in philosophy and a Liberal in party, he thought that a people had a natural right to rebel against an established Exploiting the weakness of Britain's rivals authority if it became oppressive, and he seemed to place From the moment the Confederacy was launched in 1861, credence in the South's claim to independence over an impe Prime Minister Palmers ton was hard at work on the critical rial North, which itself denied that slavery was a cause for the 58 National ElK September 9, 1994 A cartoon fr om Harper's )Veekly lampoons the European oligarchs' " WHAT THE TYRANTS OF THE OLD WO RLD THL.'lK OF SECESSION • Jrocodile tearsover the Confederacy's I . "Oh. ain't we sorry!" Harper's Weekly, 1860 secessIOn . war. Russell exemplified the outlook of many Englishmen in Janu"",that the Un;on should admOW ge the legal right of never coming to understand the North's reverence for the secession and permit separation. 'One Republic to be consti Union. During the Italian crisis in October 1860, he had cited tuted on the principle of freedom andI� �ersonal liberty-the the Swiss theorist on internationallaw Emmerich de Vattel in other on the principle of slavery and ttle mutual surrender of arguing that the rebellious peoples in Naples and the Roman fugitives.' " states were the best qualified to handle their own affairs. At this point, the government of l France joined forces Although the foreign secretary insisted that he would not with England against the Union. ts Jones elaborates: attempt to judge the question of secession in America, he ". . . Russell's support for an Anglo-French concertsuggest failed to convince Dallas [George Dallas, U. S. Minister in ed to anxious Union officials that the wo European nations London] that England's motives were pure. Russell , it were in league to encourage a breakup of the United States seemed , reflectedhis people's opinion that peaceful disunion that would permit them to expand thei I interests in the West would benefitboth North and South and , by the way , the rest ern Hemisphere." Jones quotes the correspondence between of the world as well. The British did not grasp the dangers George Dallas and U . S. Secretary of State Seward as follows: of disunion, Dallas surmised. Russell's reply also seemed "On May 22, the Union's minister in pbs, William Dayton, I purposeful. In less than a week an outspoken Southern sym wrote Seward after a meeting with Trouvenel, the foreign pathizer in Parliament , William Gregory, intended to present secretary , six days earlier , 'You will not fail to have observed a motion in the House of Commons calling for recognition that the action of France and England upon this question of of the Confederacy." belligerent rights has been upon a mut al understanding and agreement' (Dayton to Seward , May 22, 1861)." France joins the plot Shortly thereafter, Russell moved toward open support As the insurrection spread, Palmerston and Russell con for the South. His rationalization inclucledthe contention that I spired to support the South. "Southern separation seemed the American Civil War itself would disrupt trade with both irrevocable. Palmerston and Russell thought so even before South and North (the Southern cotton trade was financed out the Confederacy had reached full size. The prime minister of Anglophile New York banks), an therefore, should be had told Queen Victoria on New Year's Day of 1861 that the ended-with the obvious implication that the Union would Union was virtually dissolved. And despite Russell's claimed be leftsevered. "Russell considered tHe Lincoln administra refusal to judge American affairs , he had decided as early as tion wrong in dismissing southerndiscontent as a mere rebel- EIR September 9, 1994 National 59 lion that deserved no attention from the outside. The Ameri eration, the takeover of Mexico. The planned physical occu can events constituted a civil war that directly threatened pation of Mexico would serv� three purposes: 1) divertatten British interests. The South had a civil government, Russell tion from the weak CanadiaIl flank while Britain moved to insisted, and deserved the status of belligerent." shore that up militarily, 2) knqck out the Lincoln-allied Mexi On May 13, 1861, Queen Victoria issued a proclamation can republican movement of �enito Juarez, and 3) providea of official British neutrality, thus granting belligerent rights Southernstaging ground for a\ full-scale invasion of the Unit to the South. 'This gave the South enormous advantages, ed States. To this end, Palmerston proposed a Franco-Span including the right to borrow money, purchase war materiel, ish-British intervention into tjhe Mexican Civil War, which enter British ports with loot from privateering, commission culminated on Oct. 31, 1861 i in the signing of the Treaty of vessels from British shipbuilders, and, as long as the actual London. The invasion of Me�ico was now operational. equipping and fittingfor wartime purposes did not take place Meanwhile, John RussellJ Lord RobertCecil , and a num in England, to incorporate the new vessels into a Confederate ber of Conservatives came ou in open supportof separation. ,, t navy. 2 They demanded the reopenin* of the cotton trade, preposter ously saying that this was the fnly way to end the slave trade, Free trade: a cause for war because the South would find$� tself isolated on a continent of The declaration of neutrality enraged the North, forcing free countries and would be £ ced to give up slavery! Russell to publicly clarify his position. "The British sympa Lincoln countered Palme ston with what became known thized with the North, Russell declared, but they were not as the Trent Affair in Novem er I 861-the bold Union cap pleased with the Union's blockade, the high Morrill Tariff, ture of John Slidell, Confe rate Minister to France, and and the designation of Southern privateers as pirates." Jones James Mason, Confederate inister to England, while on further elaborates the free trade madness of Britain's lord board the British steamer Trrnt. They were deemed to be ships as a key element of the British support for the South: "the embodiment of contrab d dispatches" en route to Eu "The South's arguments for states' rights and free trade rope, and were seized by the� 'PSS San Jacinto. "Palmerston emerged as principles that British citizens could support. was irate," writes Jones. "Th�Americans, he told the Queen, England seemed determined to pursue a policy that would, had violated the British flagap d would have to make repara even if inadvertently, endanger relations with the United tions. He fumed to Russell th�t they had intended this 'delib States." erate and premeditated insult', to 'provoke' a quarrel. Russell The North became increasingly hostile to Britain, realiz called for a strong stand and "{arnedthat the Americanswere ing that British "neutrality" was but one short step from 'very dangerous people to I1In away from.' " The British "recognition." As diplomatic relations worsened, Palmer were now openly gunning for war. Palmerston gave the Unit ston began openly contemplating war against the United ed States seven days to rel�se the captives and issue an States. He called for sending three battalions of troops to apology. The British governrpentalso imposed an embargo Canada to shore up a weak military flank. In June 1861, on saltpeter, the primary component of gunpowder. Of France and England began escalating plans for war against course, France backed the British ultimatum, as did U.S. America, but they received a big shock when the Union Commanding Gen. George lB.McClella n, who joined the expanded the military buildup and initiated a full coastal call to release the prisoners!:Russell commented glibly on blockade. The British secretly worried that if Lincoln were British agent McClellan, "I Wish McClellan could be made to suppress the rebels, he would tum on England next. Dictator." Lincoln would eventuallYlrelease the prisoners, but only The Mexican flank after he had forced all player!1to show their cards, including This concern was quickly extinguished with the stunning his own generals. Union loss at Bull Run. Palmerston was gleeful , quipping that "Bull's Run should be known as 'Yankees Run.' " Rus Britain's hypocrisy abQut slavery sell thought the division of the United States was now all but Realizing the courage ofiLincoln and, at least in these a fa it accompli. Palmerston began beating the drums for situations, Secretary of State Seward, the increasingly har recognition, launching a series of dirty operations, including ried British now began to move for open recognition of the the Bunch-Mure Affair, involving the misuses of diplomatic South. The new argument was simple: Since the Union did pouches by a British consul. The moves were coordinated not make slavery an issue, the British assertedthat the South with the French puppets, who stepped up their call for inter wanted "independence," while the Union obviously desired vention. The French sent Prince Napoleon Jerome Bonaparte an "empire." Hence the British, arguing in the tradition of on a grand tour of the South, and, moreover, admonished the their agent Mazzini, would have to support the South's right Union against any interference with their trade in the South. to self-determination. With the move for intervention now initiated, Palmers ton Lincoln pulled the rug out,from beneath the British hypo switched gears and cooked up an Anglo-French flanking op- crites by circulating his proposal to free the slaves; frantic, 60 National EIR September 9, 1994 the British labelled this a move toward potential race war! erston who steered British revolts under cover of so-called liberation strug British Ambassador Lyons stated in a letter to Russell, " 'The gles against monarchies or empires, which hap ned to obstruct the British road to world empire . Pj: question is rapidly tending towards the issue either of peace 2. As the Civil War closed, Queen Victorill's diaries contained more and a recognition of the separation, or a Proclamation of references to her fear of a U.S. attack against Britain because of the latter's Emancipation and the raising of a servile insurrection.' Rus support for the South during the war (particularly in the area ofshipbuilding ), sell expressed alarm that the President should want a 'war of and because of Irish-American activity. emancipation.' " How ironic: the British racial imperialists accusing the U.S. republic of conducting a racialist imperialist war. Per haps they were worried about the consequences of Lincoln's emancipation moves on their own Empire? Free trade and blockade running Books Received On a different front, the Union blockade of the South Lincoln in American Memory, by Merrill D. Pe was beginning to show some success, and Foreign Minister terson, Oxford University Press, New York, 1994, I Russell moved to invoke free trade as a way to break the 482 pages, $30 i blockade. The British were particularly upset at its success in Tainted Breeze: The Great HanPig at GainesviUe, halting cotton shipments , and they were increasingly worried Texas, 1862, by Richard B. MdCaslin, Louisiana about the strategic threat posed by the growing U.S. Navy. I State University Press, 234 pages, �ardbound, $22.95 This issue burst on the scene in late March 1862, with the b clash of ironclads Monitor and Merrimack at Hampton The South Was Right! by James R nald Kennedy and Roads, Virginia. While the military result was a standoff, Walter Donald Kennedy, Pelican �blishing, Gretna, the significanceof a powerful new Yankee navy was not lost La. , 1994, 432 pages, hardbound,: $22.50 on the British. I Am Roe: My Life, Roe v. WaJle, and Freedom Despite all the obvious setbacks to the Confederates, the by Norma McCorvey ith Andy Meisler, of Choice, �I British never flaggedin their support, even if it brought them HarperCollins, New York, 1994 i 216 pages, hard- ' into clearly contradictory arguments. As author Anton Chait bound, $23 kin has amply documented in his book Treason in America, When China Ruled the Seas: The lfreasureFleets of the Confederacy was a British creation, the Rebellion was the Dragon Throne, 1405-1433, b� Louise Levathes, their doing. They were dumbfounded at the resiliency of Simon and Schuster, New York, ; 1994, 252 pages, Lincoln, and his ability to render impotent their every move. hardbound, $23 The U.S.-Russian alliance Perspectives on Modern China: I Four Anniversa A substantial portion of Jones's book is occupied with ries, edited by Kenneth Lieberth�, Joyce Kallgren, chronicling the titanic struggle of Lincoln to defend the Roderick MacFarquhar, and FredeJjick Wakeman, Jr. , American republic against the desperate attempt of Palmer M.E. Sharpe, Armonk, New York!, 1991, 433 pages; ston, Russell, et al. to fracture the Union. Jones unfortunately hardbound, $59.95; paperbound, $18.95 fails to locate the ultimate cause for the rebuff of the English The Making of a Soviet Scientis�: My Adventures efforts: the 1863 alliance of Czar Alexander II of Russia with in Nuclear Fusion and Space frpm Stalin to Star Abraham Lincoln. This alliance broke the back of the British Wars, by Roald Sagdeev, John Wiley and Sons, New interventionists and changed the course of history, as docu York, 1994, 352 pages, hardboun , $24.95 mented by Konstantin George in EIR's Feature of June 26, � Questions of Identity: Czech anJi Slovak Ideas of 1992 ("The U.S. Russian Entente That Saved the Union.") Nationality and Personality, by RobertPynsent , Ox That this lesson of 1863 should not be lost on Americans ford University Press, New YorkJ 1994, 244 pages, today is quite important. The United States republic is locked hardbound, $45 again in a life or death struggle to free the world from the ideological and political grip of the decaying British imperi Multilateral Debt: An Emergin* Crisis, by Percy um. President Clinton's recent declarations in that direction Mistry, Forum on Debt and Devej!.opment (Fondad) , underscore this concern. To sever the "special relationship The Hague, Netherlands, 1994, i 76 pages, paper with England" once and for all would pay appropriate hom bound, $15 age to Abraham Lincoln. The Normandy Diary of Marit-Louise Osmont, 1940-1944, by Marie-Louise psmont, Random Notes House, New York, 1994, 118 pag�s, hardbound, $17 1. Giuseppe Mazzini, 1805-1872, was an agent of Prime Minister Palm- EIR September 9, 1994 National 61 NationalNews quests such a declaration. The supervisors He said a ency officialswanted Espy to look are expected to make that request Sept. 20; bad, whith� would be difficult to do if the earlier this year, they sent an invoice to the test workk:d and were mandated. He said Harold Brown: Kissinger White House for $64million to cover costs the testin� was finally allowed after Espy of services allegedly incurredas a result of intervenell. Espy and his aides have blamed is wrong about Clinton policing illegal immigrants. the FSIS, !which, until recently,continued to Former Secretary of Defense Harold Illegal immigration will be a major issue be run byi a Bush appointee, for obstructing Brown, who served in Jimmy Carter's ad in the November gubernatorialelections and reform ot1meat and poultryinspection s. ministration, defended President Clinton's a spokesman for Wilson's opponent Kath European policy against recent attacks by leen Brown said, "on the issue of illegal Henry Kissinger in a Washington Post com immigration, Pete Wilson is a fraud. This is mentary on Aug. 26. Kissinger, in his inter another case of Rip Van Wilson sleeping nationally syndicated column, had blasted while a problem got bigger and then waking Biodi ersity Treaty the President's Partnership for Peace pro up at election time." While he was in the t takes .. hit gram, which encompasses not only the con U.S. Senate, Wilson had made speeches ' tinental European NATO members but also about the state's dependencyon the labor of Last-min te attempts by the State Depart the former Warsaw Pact, and defended the illegal immigrants, had authored anamend ment and environmental big guns, headed U.S.-British "special relationship." ment making it easier for illegal immigrants by the Si� rra Club, to push through ratifica Brown asserted that the "usually astute" to stay in this country, and had intervened tion Ofth Biodiversity Treaty in August fell Kissinger was wrong when he wrote on with immigration officials on behalf of a through hen the Senate recessed on Aug. Aug. 16 that Clinton's policies are eroding hotel manager in trouble for hiring undocu 25 witho t any action on the treaty. The the Atlantic Alliance and turning NATO mented workers. treaty, w� ich has few specific provisions, into an empty shell. The unspoken theme of Asked if he is afraid that a border block but estabfishes supranational control over Brown's piece is that Clinton's European ade in San Diego might be interpreted by sovereig� nations' land use, mandated that policy, which encourages infrastructuralde the Mexican government as a hostile act, any nati! that had not signed by Aug. 31 velopment and breaks the special relation Wilson snapped, "Ifit is, that's too bad. I've could no vote in the upcoming "Confer ship with Britain, replacing it with an orien got to tell you something: Our duty is to ences of e Parties" where the treatyprovis tation toward Germany, is a valid one and Americans, our duty is to Californians. I ions will ! actually be written. The Sierra that Kissinger was attacking exactly that make no apologies about that. " Club had �aunched a last-ditch campaign tar policy in his Aug. 16 piece. geting tItaty opponent Robert Dole (R Kan.), beFause he had called for a postpone ment on ratification based on the treaty's ambigui�s and potential damage to U.S. Espy's enemies play sovereig� and national interests. The let Calif. 's Wilson back on ter was si�ned by 35 Republican senators. games with food safety The flostponement is a victory for the immigration hobby-horse Supporters of U.S. Agriculture Secretary "wise us�" organizations and trade associa California Gov. Pete Wilson (R) criticized Mike Espy have circulated a memo by U . S. tions that ought to stop the ratification. The President Clinton on Aug. 25 for moving Meat Animal Research Center head Dan La next rou will start on Sept. 12 when the quickly to stop the floodof Cubans who are sater which charges that the Food Safety Senate returns from its recess. fleeing to Florida while "ignoring" the larger Inspection Services delayed the use of a test and costlier illegal immigration situation in for bacteria on meat carcasses. Employees California, reported the Los Angeles Times. of the FSIS are reportedly working behind I Wilson called on Clinton to beef up the Bor the scenes with the FBI and Justice Depart der Patrol and order a blockade of a 17-mile ment to concoct a case against Espy for al Scho l privatizers stretch of canyons, hills, and ravines near legedly showing favoritism to the "chicken San Diego, akin to a blockade implemented monopoply" over the "meat monopoly," be targetq their foes at EI Paso, Texas. cause he stepped up meat inspections after The Chi�ago School Board, the Chicago "It's the fault of Washington, the Presi the deadly outbreak of E. coli bacteria, School Fipance Authority, and Illinois leg dent, and the Congress, and it's time they which struck 500people in the Northwest islators a¢ using charges of waste and fraud cure this dereliction of duty," charged Wil last year. in the school system to target opponents of son, who also said he would declare a state Lasater said that the FSIS refused to schemes tbprivatize public schools, such as of emergency in California as soon as the allow trials of a test that rapidly detects bac charter scbools. San Diego County Board of Supervisors re- teria in beef, pork, and poultry carcasses. The pro-privatization School Superin- 62 National EIR September 9, 1994 ! Bri�!J • PENNSYLV.j\.NIA'S State Su preme Court has IiPprovedthe steril ization of a retardc:d26-year-old Phil adelphia woman, for which her mother has fougbt in the courts for tendent Argie Johnson has released results McCall, a young former inmate and author seven years. The'girl's attorney said of an internal investigation which exposed of a best-selling book on prison life, Makes her client is considering an appeal to alleged mismanagement and wrongdoings. Me Wanna Holler: A Young Black Man in the u.S. Supreme Court. She said The probe began after Johnson designated America. McCall told the governor, in a that the high cow.-C might welcomethe himself as top whistle-blower. Now, a spe measured tone, "That is just reintroducing opportunity to re'ferse the 1929 Buck cial hotline has been set up for citizens to plantations . " v. Bell ruling, which allowed the ster reportfraud and waste. The president of the Michael Johnson, a 25-year-old in X. ilization of Carri� Buck because she Chicago School Finance Authority, Martin mate in a maximum security facility, is on a was adjudged to Ikfeeble-minded. Koldyke, has begun a probe of finances of hunger strike against Allen's Proposal X, ! the schools' facilities department. A year saying he wants to meet with Allen and is • A FEDERAL JUDGE has or ago, an inspector general was hired by the prepared to die if he can't have the meeting. dered the PennsyJ.vania Welfare De- legislature to investigate fraud. Johnson told the Aug. 26 Richmond Times partment to hal ·· ts plans to cut the The legislature convened public hear Dispatch: "It's a humane protest against an � benefits of 29, people between ings Aug. 18 in Chicago to air some of the inhumane government. I could very easily the ages of 45 64. The state has charges, including allegations of misappro get 100, 200guys andlead a violent protest. admitted that a�ut 12,000 of them, priation of funds by Board of Education What would that accomplish? Nothing. including many who are mentally ill President Sharon Grant. State Sen. Frank People might get hurt, and we defeat the or require life-s�ving prescriptions, Watson, who chaired the hearings, called cause. But if we sacrifice our lives as [did] are probably elig.ble for benefits. for dividing up the school district, saying Christ Jesus," it might make a difference. i that "the vast largeness of the system creates "He sacrificed his life and made a world of • UNITED A O Workers mem the inability to control." difference. " UT bers struck a k4Y General Motors Corp. subsidiary/in Anderson, Indi ana on Aug. 23, iJtterruptingthe flow of components tolthe automaker's as Weld, Wampanoags sign sembly lines. � walkout reflected Virginia's Allen wants long-standing risentments among Bay State casino pact employees over M's effort to give million for prisons O $850 Massachusetts Gov. William Weld has more work to nod-union workers. The fiscalconservative , "Jeffersonian" Vir signed an agreement with the Wampanoag i ginia Gov. George Allen (R), has proposed Indian tribe for the construction of a gigantic • THE TEXA$ attorney general's to finance the construction of all the new gambling casino. Weld called the deal "a office rendered � opinion on Aug. prisons that will be needed if his parole abo sure bet" for the Indians and the state. The 23, that casino tambling would be lition plan goes through, by floating $850 proposed $175 million casino complex illegal without a1change in the state million in government bonds. He drew a would be built in New Bedford, though the constitution. Suqh a change would quick response from Del. Richard Cranwell tribe's only ancestral land is on Martha's require a two-thijrds approval of the (D-Roanoke), who said, "It's easy to talk Vineyard island. The deal will require ap legislature and acfeptance by the vot about bonds, because bonds are passing the proval from Interior Secretary Bruce ers in a referend�m, which is unlike cost on to future generations." Some law Babbitt. Iy. Pro-gambling!forc es are trying to makers have gone Allen one better, propos Boston Globe David Nyhan analyzed bypass that procejssthrough a federal ing to finance the prisons with casino gam Weld's apparent political transformation suit by the TiguajIndian tribe to turn bling revenues. from an anti-welfare and anti-gambling con their bingo parlo. into a casino. Democrats have also challenged Allen's servative, in his column on Aug. 24: "The claim that his Proposal X, as the parole abo deal was greased with bigtime gambling • THE NEW \fORKTIMES con lition plan is called, could prevent 120,000 money ....But where was Weld and his tinued its traditi�n of attacking U.S. crimes over the next decade. The Virginia conservative mantra? ...He 's down there science in an Au�. 26 editorial, "Too Criminal Justice Research Center released a in the pit, up to his elbows in chips and Many Nuclear �bs," asserting that report in late August showing that only 78 complimentary cocktails, singing 'Let the the Clinton adrni$istrationshould im murders out of 1,700 could have been pre good times roll.' " pose reductions qn the nation's three vented between 1986 and 1993 if the plan Rep. BarneyFrank (D), an avowed ho nuclear design f� ilities: Los Alamos had been in effect during those years. mosexual whose district includes New Bed National Labora1\ory and Sandia Na In a debate on CNN's "LarryKing Live" ford , supported his Republican governor: tional Laborator}' in New Mexico; on Aug. 18, Allen reiterated his plan to use 'This is not compulsory gambling. This is and Lawrence Livermore National prison labor to build the new prisons. He letting adults do what they want in an eco Laboratory in Cliifornia. was immediately challenged by Nathan nomically constructive way." ElK September 9, 1994 National 63 Editorial How we lost the peace Plans by the Smithsonian's National Air and Space In 1943, President Roosevelt stated repeatedly that Museum to run an exhibit entitled: "The Last Act: The he had made no decision as (0 whether or not he would Atomic Bomb and the End of World War II," have approve using atomic weappns. By 1945, in the last generated a storm of opposition based upon emphasis months of Roosevelt's life, it was an even bet whether in the display on scenes of the aftermath of the bomb Japan or Germany would collapse first. The Japanese ings in Hiroshima and Nagasaki. As planned, the ex had already sent out peace feelers through Josef Stalin hibit is divided into five areas-the context in which and also through the Vatidan. Indeed, according to the war in the Pacificoccurr ed, the decision to develop the U.S. National Archive pocumentation, President and use atomic bombs, details about the two bombing Roosevelt had planned to meet with Pope Pius XII missions, the effects ofthe bombings on Hiroshima and early that year, to discuss these negotiations and other Nagasaki, and the legacy of the bombings. matters with the pontiff. Then he died. Its critics contend that the exhibit not only is biased "Drop atomic bombs on the Japanese," his advisers toward a Japanese point of view, but that it treats the told President Truman, "an� not only will the war in bombing as a matter of U. S. war guilt on a par with the Pacific be over, but YO)l will have the means of Nazi concentration camps. The horrors inflictedon the forcing concessions from the Soviets." Stupidly, and populations of Hiroshima and Nagasaki were terrible, cruelly , he agreed. As Betp"and Russell admitted in but war itself is always terrible. The question to be print just one year later, the atom bomb was to be the answered is first, whether a given war is a just war; battering ram to force world government not only on second, whether the means used to fight it are appro the Soviets, but on the recalj:itrant Americans as well. priate; and third , whether the terms on which a war is Harry Truman was fooled by these one-worlders into brought to conclusion provide a basis for a fruitful playing their game. peace for both victors and vanquished. They planned to control the United States and force Few people today would deny that World War I a new form of imperialism upon the peoples of the was an unjust war, and certainly it was an unjust peace. world. The terror potential pf unlimited development This led to circumstances in which Hitler was catapult of nuclear weapons was to b� the lever. ed to power in Germany with the backing of the British They did not, of course, succeed with their total royal house and many in the United States. Notwith agenda, but they have shaped the events of the past 50 standing, by 1941, when the Japanese attacked Pearl years so as to gradually erode national sovereignty and Harbor, the die was cast and the United States had to to allow the United Nations: organization to accrue de ensure the defeat of Hitler and the Axis powers allied facto more and more police power. They have done this with him. through various world-goveltnmentinstrumentalities of Much could and should have been done to avert the United Nations such as the International Monetary World War II, but by then , it had to be fought; and the Fund (IMF) , the United Nations Education, Social and goals enunciated by President Roosevelt on behalf of Cultural Organization (Une�co) and the International the American people made it a just war. The terrible Atomic Energy Agency (I�EA). This is their agenda thing is that, after President Roosevelt's death , we did for the population conferenqe now occurring at Cairo. not have a just peace, nor can it be said that the conduct President Roosevelt, in both private conversation as of the war in itself was just. It did not take the killing reported by his son Elliot and in public speeches, made of the 200,000 residents of Hiroshima and Nagasaki to his purpose clear. World WatII was being fought to end end the war without an invasion of Japan. Before the all imperialisms, not least that of the British. His death, two bombs were dropped, the Japanese had already like that of Abraham Lincoln, ended a just warwith a bad been licked. peace and we are still paying the price for that. 64 National EIR September 9, 1994 SEE LAROUCHE ON CAB L E TV Al l programs are The LaRouche Connection unless otherwise noted. ALASKA GEORGIA MISSOURI • UTICA-Harron Ch. '3 Thursdays-6:30 p.m. • ANCHORAGE-ACTV Ch. 40 • ATLANTA-Ch. 12 • ST. LOUIS-Ch. 22 Wednesdays-9 p.m. Fridays- 1 :30 p.m. Wednesdays-5 p.m. • WEBSTER-GRC Ch. 12 Wednesdays-9 :30 p.m. IDAHO NEW YORK ARKANSAS • YONKERS-Ch. 37 MOSCOW-Ch. 37 BRONX-BronxNet Ch. 67 • FAYETIEVILLE-Ch. 8 • • Fridays-4 p.m. Wednesdays-1 2 Midnight (Check Readerboard) Saturdays-6 pm OREGON ILLINOIS • BROOKHAVEN-(E. 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