'A T.OTA STRATE INST PEKING by Gen. Ten

,. "j

ft IIAll we need do is to ow 'eft> make the most of s weLknesses. Then we He(eat. The Chinese like a paper rough. All the unism." . Teng Chieh

This amazin Kuomintang 1988, charted erupted just a ,Jr.

Exclusive U.S. 1.50 postage and Ben Franklin rst book, $.50 for 27 South King St. book), Virginia 4112% Leesburg, VA tax. . (703) 777-3661 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: John Sigerson, Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papen, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, ver the past month, Helga Zepp-LaRouche, the founder of the Webster Tarpley, William Wenz, Carol White, O Christopher White Schiller Institute, and her colleagues have given a series of presenta­ Science and Technology: Carol White tions in Czechoslovakia to public and private conferences held to Special Services: Richard Freeman discuss future economic policy in the wake of the liberation of central Book Editor: Katherine Notley Advertising Director: Marsha Freeman European countries from the yoke of Soviet-imposed communist Circulation Manager: Cynthia Parsons dictatorship. In Economics, you can read in more detail about a INTELLIGENCE DIRECTORS: conference in Slovakia, plus a report on a Schiller Institute delega­ Agriculture: Marcia Merry Asia: Linda de Hoyos tion's first visit to a republic within the Soviet Union-Ukraine. Counterintelligence: Jeffrey Steinberg, More will follow in our next issue, as we expect to report on further Paul Goldstein Economics: Christopher White activity in Czechoslovakia as well as Soviet Annenia. European Economics: William Engdahl These forays are situating the Schiller Institute and the programs Thero-America: Robyn Quijano, Dennis Small Medicine: John Grauerholz, M.D. of Lyndon LaRouche-which are the 20th century sequel to Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George Friedrich List's notion of a national economy-as the counterpole Special Projects: Mark BNrdman to what is known in the former East bloc as the Harvard Mafia, United States: Kathleen Klenetsky around such characters as Jeffrey Sachs. As the initial round of INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura, Sophie Tanapura Sachs's radical free-market recipes is causing so much chaos, many Bogota: Jose Restrepo see LaRouche's "Productive Triangle" plan as the only realistic alter­ Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen native. Houston: Harley Schlanger I urge you to tum next to our National lead article, where Webster Lima: Sara Madueno Mexico City: Hugo L6pez Ochoa Tarpley reveals how the New York Council on Foreign Relations is Milan: Leonardo Servadio considering deploying U.S. military forces into the U.S.S.R. in New Delhi: Susan Maitra Paris: Christine Bie"e the expectation of intervening into civil war. Does the East Coast Rio de Janeiro: Silvia Palacios establishment want a Soviet civil war? It may seem unthinkable. But Rome: Stejania Sacchi Stockholm: Michael Ericson read in the Internationallead about how the U.S. State Department, Washington, D.C.: William Jones in concert with its Moscow counterparts, has fostered the breakdown Wiesbaden: Goran Haglund into violent conflict in Yugoslavia; it becomes clear that such evil is EIR (ISSN 0886-0947) is published weekly (50 issues) indeed in the hearts of the Anglo-American elites. except for the first week of April, and the last week of December by E1R News Service Inc., 1430 K Street, All this is designed to keep loot flowing into a financial system NW, Suite 901, Washington, DC 20005 (202) 628·0029 cantilevered far beyond bankruptcy, as the U. S. physical economy E/U'OfIHIJ HtlItIqlltllWrs: Executive Intelligence Review NachrichtenagenlUr GmbH,Postfach 2308, continues its tailspin toward a crash. The Economics lead article tells Dotzheimcrstrasse 166, 0-6200 Wiesbaden, Federal Republic of Germany that the U. S. has entered into hyperinflation because of the failure of Tel: (0611) 8840. Executive Directors: Anno Hellenbroich, Michael Liebig Wall Street and its Washington puppets to face reality. The Feature In Denmorlc: EIR, Post Box 2613,2100 Copenhagen 0E, Tel. 3543 60 40 exposes the dimensions of U.S. unemployment figures, and what In Me;r;ieo: EIR, Francisco Dlaz Covarrubias 54 A·3 you can to do make the governmenttell the truth. Colonia San Rafael, Mexico OF. Tel: 705·1295. JaptUI ,""'cripIi6n silk.: O.T.O. Research Corporation, Our next issue, dated July 19, will be a double issue and will Takeuchi Bldg.,1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. count as two issues for subscribers. It will contain a full report on Copyright iCI 1991 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly the legal frameups of LaRouche and his friends, besides the regular prohibited. Second-class postage paid at news and features. Washington D.C., and at an additional mailing offices. 3 months-$12S, 6 months-$225, I year-$396,Single issue--$IO Postmaster: Send all addresschanges toElR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TImContents

InteIViews Economics

9 Professor V. Sikora 15 EIR team finds scant A professor of political economy at support for NAFTA the Cultural Institute of Kiev, also chairman of the Center for Market 16 Korean economic deals 'an Economy, discusses the need to internal matter' base Ukraine's economic recovery on the ideas of Friedrich List­ precisely the model promoted by 18 Third World leaders the Schiller Institute. denounce U.N. genocide pro�osal Helga Zepp-LaRouche in Prague. where she ad­ Departments dressed two conferenceson the "Productive Triangle" program in May-part of an intense intervention by 19 July 1 budget cuts mean the Schiller Institute throughout central ann eastern ma!fi layoffs 23 Report from Rome Europe's formerly communist-ruled countries. University reopens to nuclear 20 'Zero risk' standard for debate. 4 U. S. deficit out of control, pes�cides makes no sense as hyperinflation looms 45 Report from Bonn May's deficit came in at an all-time in the real world Berlin is again the capital. record $53.35 billion, even though the Treasury received that month 22 Banking 46 From New Delhi most of the balance of Gulf war House seeks to curb Bush bailout. Rao cabinet affirmscontinuity . tribute money from the erstwhile allies. 24 Business Briefs 47 Dateline Mexico Kissinger's depopulation plan 6 Slovakia debates economic exposed. policy: LaRouche vs. IMF A conference of the Schiller 48 Panama Report Institute in Bratislava was the scene U.S. agents are tied to drugs. of heated debates.

49 Report from Rio 8 Currency Rates The Brazil that can say yes. 9 Ukraine needs its own 64 Editorial currency to promote Development on the table economic development internationally. Interview with Prof. V. Sikora.

10 Toward the sovereignty and progress of Ukraine

11 Peru revolts against IMF's wrecking job

13 Bush wants World Bank 'privatization' shift

14 LaRouche warns against bashing Europe, Japan Volume 18, Number 26, July5, 1991

Feature International National

26 Did unemployment top 32 34 Yugoslav civil war process 52 CFR eyes U. S. role in million in U. S. in 1990? can still be stopped U.S. S. R. civil war Laurence Hecht shows that the real The West deliberately failed to By Webster Tarpley. Whether or levels of unemployment are far foster a peaceful compromise this not it is desirable to have a civil war higher than the government and spring; but the die was really cast in the U. S. S.R. is the issue: media report. President Bush and two years ago, when the IMF Humanity and reason say no. other officials may keep on using forced Belgrade to take Jeffrey the fraudulent statistics, but they Sachs as an economic adviser. 54 Rep. Gonzalez seeks to lift can no longer claim they didn't Iraq embargo know what the real numbers are . 36 'Surrender' of Medellin drug lord means the moral 55 Pentagon admits: Intent kidnaping of Colombia toward Iraq is genocide. Pablo Escobar is now ensconced in It was the reason for the war, and it his luxury "prison." The Gaviria is the reason for continuing the government's capitulation can be sanctions now. traced to the U. S. refusal to help Colombia's war on drugs in 1989. 56 Latest Supreme Court Documentation: From a statement rulings rip up U.S. Bill of by former Colombian Justice Rights Minister Enrique Parejo Gonzalez. The Court is expanding the power of police agencies over the 38 Venezuelan Army chief individual, while limiting the power warns 'corrupt democracy' of the federal courts to enforce the is breeding civil war Constitution. Dissenting Justice Documentation: From a speech by Thurgood Marshall (who has now Corrections: In our June 21 issue, on Gen. Carlos Julio Penaloza, page 57, the great Russian icon painter resigned from the bench) quoted a outgoing commander of the Army. Rublyov's name was incorrectly spelled Florida judge: "This is not Hitler's "Rubleyev." On page 6 of the same Berlin, nor Stalin's Moscow"-at issue, in the opening of Paolo 41 Regional powers win least not yet. Raimondi's speech in Prague, Cambodian cease-fire "Friedrich List: the economist of 58 Thornburgh and the industrial capitalism," the citation from 42 Club of Rome in new Contra drug link List should open with the very first malthusian offensive paragraph of the speech, and continue 59 Nebraska pedophile trial through the third paragraph. Due to an 43 Prince Philip put on ends in coverup editorial error, the quote marks only defensive by EIR opened with the third paragraph. The 60 Congressional Closeup actual words of List begin with the phrase, "I shall confine my remarks to 44 Horn of Africa target for the refutation of the theory of Adam re-colonization 62 National News Smith ...." We apologize for any confusion this error may have caused. 50 International Intelligence �TIillEconomics

u.s. deficit out of control, as hyperinflation looms:

by Steve Parsons

While the U.S. government and international media chum called attractiveness of U. S. investments for foreign money, out reams of data and forecasts hyping the imminent "recov­ not to mention the stock market. ery ," the U . S. financial system is verging on an uncontrolla­ ble hemorrhage of debt and red ink. An unprecedented U. S. $300 billion more for the banks budget deficit is now intersecting the insolvency of major But this is only the tip of the iceberg. Treasury Secretary financial sectors. From banks and insurance companies to Nicholas Brady appeared before the House Banking Commit­ governmentsat all levels , the enormous demand for financing tee on June 26 to demand another $180 billion bailout for the is threatening to detonate a hyperinflationary explosion as bottomless savings and loans pit known as the Resolution the "alternative" to a deflationary collapse. Trust Corp.-$80 billion in, direct budget appropriations, First of all, the U.S. government's budget deficit is out and $100 billion in "working capital" that will be financed of control. Mafs deficitcame in at an all-time record $53.35 through off-budget RTC bonds. This comes on top of the $80 billion, even though the Treasury received that month most billion "officially" already provided by Congress, plus $70 of the balance of Gulf war tribute money from the "coalition" billion in RefCorp bonds already floated. Furthermore, the allies. Thus, the actual deficitwas even worse. This boosted new $80 billion on-budget request by Brady understates by the total for the first eight months of the fiscal year to $175 approximately $50 billion hat the RTC needs, on two billion. Although the Bush administration still maintains that counts: It does not include 208, S&Ls that are insolvent but this year's deficit will be under $300 billion, it is recognized not yet declared officiallydead , and is valued in 1989 dollars, that the U. S. Treasury's quarterly funding requirements will not current dollars. And on top of these shenanigans, Con­ amount to $100billion from now on. That is, the United gress is being asked to permtt commercial banks to borrow States is now set to borrow , every three months, an amount $70 billion directly from the Federal Reserve. approximately equal to Mexico's total foreign debt. That puts the total new money requests for the S&Ls and For the last week of June alone, the Treasury was plan­ banks at $300 billion. And no one doubts that this is hardly ning to raise $55.25 billion in two-year and five-yearnot es, the end, as the original S&L bailout estimate of $50 billion along with three-month, six-month, and one-year bills, even now veers up toward $1 trilli6n. though a large inventory of short- and intermediate-term Brady not only ignores mention of this stupendous debt notes is sitting unsold on dealers ' shelves. Interest payments run-up, but insists that the so-called on-budget RTC costs alone on the federal government's present debt are now run­ add up to just $132 billion-the latest officialcost projection ning at about $240 billion per year, as much as the Bush for the S&L bailout. This "new math" project to cover up the administration's estimate of this year's deficit, and expendi­ catastrophe has not, however, fooled those in the know. tures are growing almost twice as fast as revenues. These The Swiss-based Bank for International Settlements increased funding requirements set the stage for both a dollar (BIS) noted, albeit in an exceptionally polite manner, the devaluation and U. S. interest rate increases in the context of rigged data coming out of the U.S. government. In its just­ the August quarterly refinancing-thus torpedoing the so- released annual report, the central bank of central banks says

4 Economics EIR July 5, 1991 • that U.S. financial statistics on capital flows are totally con­ in a significantdegree , it will signal that the game is over for tradictory, making it "unclear how the U. S. deficit is fi­ Bush's economic crisis management." nanced." Last year, foreign direct and portfolio investment in the United States plunged more than $100 billion, to less A $500 billion deficit? Or more? than $31 billion, while U.S. investments abroad sharply in­ The growing tab for the S&L and commercial bank bai­ creased-putting net capital flows roughly in balance. But louts are not all that's hitting Washington. In the wings is the U.S. current account statistics unaccountably show a sur­ insurance industry , reeling from billions of dollars of losses plus-and net inflowof funds-of some $73 billion. from crashing real estate, junk bonds, and hefty liability At the same time, while on-the-books figuresfrom Japan settlements. As of 1989, total real estate and mortgageinvest­ show a sharp decrease in net outflow ofsecurities purchases ments for many insurance companies were up to 10 times to only a $5 billion, Japan's current account deficit was un­ greater than capital and surplus. A Townsend & Schupp derstated. There was "again a sizable statistical discrepan­ survey of 61 life insurance companies showed that average cy-with the opposite sign to that of the United States," the real estate investments were more than 400% of capital in BIS observed. 1989. Travelers' ratio was nearly 900%, Mutual Benefital­ What this means, is that a statistical obfuscation is cov­ most 1,000%, and Aetna's was 1,100%! ering up the extent of U.S. deficit financing, and the extent With the failures of First Executive and First Capital of Japanese subsidy for that financing, for fear of making showing the utter inadequacy of state guaranty funds, state clear the gaping financial hole in America-and, perhaps insurance regulators by year-end are expected to requirecom­ even worse, revealing the growing inability to actually fi­ panies to set aside capital reserves against risky mortgages nance such enormous deficits. It is this reality that was behind and real estate investments, similar to the reserve ratios that theGroup of Seven meeting in London on June 23. banks are supposed to maintain to cover potential loan de­ faults. The greatest hemorrhage of red inkis from the insur­ Desperate ploy at G-7 talks ance companies with the worst investments, as with the "It is clear from the London G-7 talks that Washington banks, the ones that can least affordto maintain reserves. absolutely is determined to prevent large flowsof funds from That poses the potentiality of an insurance bailout by the going into the Soviet economy and East Europe," said City federal government, on top of the S&L and imminent bank of London economist Stephen Lewis in comments on the mess. Some of the largest insurance companies have been recent "pre-talks" prior to the July 15 Western economic discussing with federal officialslegisla tion to have Washing­ summit to which Gorbachov has been invited. "The U.S. is ton take over regulation of commercial insurers from the putting behind-the-scenes pressure to redirect capital flows states. This would be the prerequisite for creating some form back into the United States. This is also behind the recent of federal insurance fund, like the Federal Deposit Insurance spate of articlesmentioning the recent BIS report on a global Corp . (FDIC) for the banks. capital shortfall. Washington is trying to 'orchestrate' the And it doesn't stop there. As the collapse of First Execu­ news to show an 'upbeat U.S. recovery. ' The problem is that tive shows, the pension benefits of millions with insurance the U.S. stock market is already overinflated. At this point, company annuities are in danger. And if there is a bust on if the markets believe the signs of 'recovery,' they will start the markets-including stocks, mutual funds, and bonds­ to pull back, fearing no further interest rate cuts; if there is the institutional pension funds that are the number one source no more 'good news' on the recovery, the markets will fear of liquidity for the entire U.S. financial system, are in ex­ rising deficits and higher taxes, and will sell as well." treme danger. The call has already gone up for the govern­ According to Lewis, Bush has set the stage by permitting ment's Pension Benefits Guaranty Corp. to guarantee the Gorbachov to come to the G-7. "Gorbachov will come away pensions for victims of First Executive and other companies, fromLondon and the G-7 with nothing. This and the growing with many mooting that it should insure virtually all pension catastrophe of the Soviet economy will then dominate press funds . headlines for the coming months. This will benefit Bush, Take into account the financing requirements for state because it will indirectly send the message that Germany is and local governmentsunable to sufficientlycut expenditures not a secure investment with so many problems in the nearby or raise taxes to finance some $200 billion in deficits for Soviet economy, hence Washington hopes to reverse capital fiscal years 1991 and 1992. Then add in unprecedented levels flows again back into the 'recovering' U.S. economy and the corporate borrowing, and plummeting foreign investment, dollar. and you get a horrifying picture of total illiquidity. Govern­ "The problemfor Bush is that, as the recent May deficit ment "remedies" of blood-curdling budget cuts and tax hikes, showed, the size of the coming U.S. capital funding require­ no matter how extensive, simply can't pay for all this. That ments is so far beyond anything to date , that Bush must leaves simply the printing presses-a Brazilian-style hyper­ attract a very, very large sum of capital, and ultimately that inflation that can only result in a catastrophic deflationary means raising U. S. interest rates to do that. Once this occurs bust.

EIR July 5, 1991 Economics 5 European dream,' but we will i work together, without illu­ sions, with a serious commitment on economic policy."

Slovakia and the Productive Triangle Mrs. Beyreuther-Raimondi, in her speech on the conse­ quences of the "shock" austerity policy of the International Monetary Fund and the World Bank, warned that this policy should be rejected for Czechosjovakia, as it had led national Slovakiadeba tes economies into ruin wherever tlais"lethal IMF medicine" had been adopted. Paolo Raimondi counterposed the policy of economic policy: the "industrial capitalist Friecblich List" to the "ideology of the monetarist Vaclav Klaus," ",hois the national Czechoslo­ LaRouchevs . vakian finance minister. Raim�ndi called on participants to IMF look back to the historic example of the successful industrial by AngeUka Beyreuther-Raimondi revolution, and not to the ideological authors of bankrupt economic systems which chan¢terize today's American and ! British models. In the beautiful headquarters in Bratislava of the Christian The discussion pivoted around the question of what is the Democratic Movement of Slovakia, the Schiller Institute best economic course today. One spokesman for a Slovak sponsored on June 17-with strong organizational support ministry stated that his ministry would have been happy to from the Movement-a daylong meeting on the topic of host a conference on the Productive Triangle, but that since Lyndon LaRouche's proposal for a European Productive Tri­ the IMP was at that very moment conducting negotiations in angle and the "Science of an Economic Policy Based on Slovakia, the Schiller Instituteis views on that question had Christian Principles." become too hot to handle. The: concrete question was posed The chairman of the Schiller Institute in Germany, Mrs. in manifold ways as to what possibilities are available other Helga Zepp-LaRouche, and the other Schiller Institute speak­ than IMP "medicine." ers were presented by Dr. Papay, the leader of the Christian There was great skepticism about the West. "Where are Democratic Education Center. Dr. Hrnciar, the leader of the our partners in the West, who will support us, if we reject the Christian Democratic foreign division, delivered the official IMF prescriptions and implement the Productive Triangle?" greetings. Dr. Papay also saluted on the podium, Slovakia's There was also skepticism about certain assertions of the Forestry and Water Management Minister William Ober­ Schiller Institute: "Can you really compare the highly indus­ hauser, as well as a guest delegation from Budapest, led trialized nation of Czechoslovakia with Third World coun­ by the president of the Association of Hungarian Political tries? If we adopt the IMF conditions; will it really have the Prisoners, Mr. Fonay. The 60guests included leading figures same results for us as in the Third World? Aren't there also of the different Slovakian ministries, several parliamentari­ some positive examples of the effects of IMF conditions, ans, scholars from various universities and institutes, and such as Portugal, Spain, Greeoe, or Turkey?" active members of the Christian Democratic Movement. In August 1990, the Christian Democratic prime minister Following a presentation on the Productive Triangle by of Slovakia, Dr. Jan Carnogunsky, gave the German maga­ Ralf Schauerhammer, Mrs. Zepp-LaRouche developed in zine Parliament an interview, inwhich he expressed his wish her speech the basic problem of the neomalthusian "new "that Bratislava will attain the importance of Vienna and world order" of George Bush, which is in total contrast to Budapest." He added: "The city has all the preconditions for the new world economic order put forward by her husband, that in its geographical position." The geographical position Lyndon LaRouche, on the basis of Christian principles. She of the historic city on the Danube River is in fact extraordi­ gave examples from almost 20 years of recent history, of narily interesting within the context of an overall European how the LaRouche movement and, since 1984, the Schiller infrastructure project. Not only would Slovakia's location Institute had evolved as the international institutional count­ bring major economic advantages to this country, if the Pro­ erpole to the neomalthusians. ductive Triangle concept were implemented, but also, the Both President Fonay of the Association of Hungarian high ratio of skilled labor power in its 5 million people. Political Prisoners and the chief of the association's foreign In the cited interview, Dr. C�ogursky also indicated that section, Dr. Tibor Kovats, appealed strongly for friendship "political awareness in Slovakia is more shaped on the model for the two neighboring peoples, and extolled "that which of Christianity than is the case ,for the Bohemian states." binds us together," namely, "the economic-political program In the controversy over theiright direction for Czechoslo­ for the future." Dr. Kovats declared that with our friends of vakian economic policy, this! fact may play an important the former East bloc lands, "we will not just 'dream a unified future role: Slovakia has a Ca�olic majority and its people

6 Economics EIR July 5, 1991 fThe Castle in Prague, seat of Czechoslovak President Vaclav Havel, where the Schiller Institute was �nvited on May 23 to present its economic program to experts from ministries, research institutes, and universities during a half-day seminar sponsored by tho George Podebrady Foundation for European Cooperation.

In Bratislava, RalfSchauerhammer Paolo Raimondi, who spoke in Prague and Angelika 1{(llm,UfUll outlined the infrastructure projects which Bratislava on Friedrich List, contrasting on the crimes of make up the "Productive Triangle" plan. his concept of National Economy to the World and Eastern Europe at the Schiller policies of monetarist Finance Minister Institute conferences. Vaclav Klaus.

This demonstration, demanding independence for Slovakia, greeted Vaclav Havel on his first trip to Munich, Germany in early 1990. The current Slovakian premier, Dr. Carnogursky, seeks a state treaty in which Slovakia's sovereignty would be established, and it would then delegate powers to the federal regime in Prague.

EIR July 5, 1991 Economics 7 are therefore more disposed to an economic order based on Christian principles. Currency Rates Czechoslovakia's current crisis The situation in Czechoslovakia is critical. According to The dollar in deutschemarks New York late afternoonfixin g estimates, overall production fell 25% in the year between March 1990 and March 1991. In construction, the decline 1.80 .A. was 43.9%. Consumer prices rose about 63% and prices to industrial manufacturers more than 71 %. The average real 1.70 r--.... � � � income collapsed about 35%. This reversal corresponds to Lr- about double the decline of Czechoslovakia's industrial pro­ 1.60 duction in the four years after 1929-the onset of the last Great Depression. 1.50 In Slovakia, things are even worse. This is where heavy 1.40 machinery construction and the arms industry are concentrat­ 5/8 5115 5122 5129 615 6112 6119 6126 ed, as well as the big metalworking and chemical complexes. Unemployment has climbed sharply. The monetarist finance The dollar in yen minister Vaclav Klaus is therefore even more disliked in New York late afternoon fixing Slovakia than in the Bohemian and Moravian parts of the country. 160

150 Political clashes

On June 17, in the Moravian city of Kromeziz under the 140 chairmanshipof President Vaclav Havel, the fifthnegotiating � session opened between the Czech and Slovak republics con­ 130 cerning the future constitutional shape of the state. Prime Minister Carnogursky argued for a state treaty between the 120 two republics guaranteed by international law, in which the 5/8 5115 5122 5129 615 6112 6119 6126 sovereignty of Slovakia would be established, and as an au­ The British pound in dollars tonomous state it could then delegate powers to the federal New York late afternoonfixin g regime in Prague, such as foreign and defense policies. Finance Minister Klaus, who has been for some months 2.00 also the chairman of the small Democratic Citizens Party, put out an ultimatum-like declaration before the negotiations 1.90 started, rejecting all the Slovakian proposals. It is to be hoped that the personal relations between Havel and Carnogursky, 1.80 from their days as political prisoners under the communist 1.70 --- regime, may help to overcome the difficultieswhich are mak­ � rv. '" ing deep divisions in the country, especially because of this 1.60 r" kind of provocative behavior. � 5/8 5115 5122 5129 615 6112 6119 6126 The dyed-in-the-wool "Anglo-Americans" among Czech politicians, like Vaclav Klaus, will find it more difficult in The dollar in Swiss francs the future, if their "leading lights" continue to behave rudely New York late afternoonfixin g by European standards. When U.S. Vice President Dan Quayle recently met with the elites of the Eastern European 1.60 countriesin Bardejov, Czechoslovakia, not only did the be­ 1.50 � havior of the American security forces shock the central and � - � eastern Europeans, who could not help but compare their 1.40 � arrogance to memories of the Russian occupation; but the V- cost of the American visit was so high-and the Quayle 1.30 entourage's actions so downright "imperial"-that the politi­ cians whose populations are supposed to swallow the ordered 1.20 drastic austerity measures, were quietly tallying things up 5/8 5115 5122 5129 615 6112 6119 6126 and thinking about the Yalta sellout.

8 Economics EIR July 5, 1991 Interview: Professor V. Sikora

Ukraine needs its own currency to promote economic development

In the context of a sp ecialized conference of the Ukrainian approach. popular movement Rukh in Kiev, our correspondents Anno We must therefore take care that the introduction of a Hellenbroich and Michael Vitt had the opportunity to inter­ Ukrainian national currency be carried out very carefully. view Prof. V. Sikora about the situation in Ukraine in the The introduction of a general internal as well as external midst of the current breakdownprocess in the Soviet Union. convertibility would be premature, because the Ukrainian Mr. Sikora is professor of political economy at the Cultural economy is not well enough established and the foreignatmo­ Institute of Kiev and chairman of the Center fo r Market sphere does not present itself as friendly.We must therefore Economy. place in the foreground, the strengthening of the currency inside the country . ElK: We are now just at the end of an important conference The strengthening of economic relations with our neigh­ on the economic rebirth of Ukraine.What in your judgment boring countries Russia and Belorussia is very importantfor will be the impact of the conference and what is the present Ukraine.The same goes for economic relations with Germa­ status of thediscussion? ny. These relations should serve to build up a stable Central Sikora: Ukraine is on the verge of introducing its own na­ European economic zone-Poland, Czechoslovakia, Hun­ tional currency. We see this as a decisive step toward solving gary, even Bulgaria-between Ukraine and Germany. Ger­ the problems which have emerged in the frameworkof priva­ many must understand, that the East European economic tization. At the same time, it should protect the population zone is in the foreground for us.The development of relations from the bruntof the consequences that come with the intro­ to Germany follows then as the next step .... duction of a market economy in general. The development of these relations must be accomplished The conferencemade it clear, that an independent Ukrai­ in the framework of an accelerated European integration. nian economy could play an essential role within an Eastern The Ukrainian national currency deserves the trust of its European economic structure.. . . And if we simultaneously neighbors. It will soon be able to have extensive hard-curren­ introducethe mechanisms of the market economy, yet guard cy reserves at its disposal, because it exports raw materials. against the introduction of the "pure market economy," i.e. , We hold, for example, practically the world monopoly on carry through the cultural aspects and the political instru­ manganese and beryllium mining. Ukraine is noted for its ments of a market economy in the right direction, I am sure wealth of mineral raw materials.Add to this, agricultureand that all these prerequisites will contribute to allowing the our export capabilities in oil, sugar, and iron ore. And with introduction of our own national currency to be successful. the necessary investments, Ukraine could develop gold min­ This national currencywould, for its part, advance the stabili­ ing.In this respect, the Ukrainian currency has at its disposal ty of the Ukrainian economy. an extensive cover in the form of hard currency reserves. If a Ukrainian national currency were introduced within The foreign debt of Ukraine is smaller than the Romani­ six months at the latest, this could in my judgment become an, for example. Also from this side nothing stands in the the turning point in our economic development. . .. The way of real economic development. most importantthing seems to me to establish that the Ukrai­ nian economy forms a solid basis for a national currency. EIR: Several of the conference speakers are members of the Ukraine has to represent an independent economic zone, Supreme Soviet of Ukraine and the People's Congress.Will which doesnot isolate itself through exaggerated protection­ the problems of privatization and the struggle for indepen­ ism, but is much more oriented to the views of Friedrich List. dence be correctly handled by the local parliament and the Precisely List is, in my view, to be taken very seriously in present regime? How does the perspective of the next three this period, in order to prevent a one-sided market economy to six months look to you?

ElK July 5, 1991 Economics 9 Sikora: The situation in Ukraine is complicated.We don't EIR: How do things stand regarding the supply of industrial have any really independent governmental institutions.The and agricultural products vis-�-vis the upcoming Group of policy of a "shock therapy" is not acceptable to us.Ukraine Seven meeting and the proposats which Gorbachov directed must move in various directions in the next six months.Politi­ to Western leaders? cal independence is the first priority.Our own currency sys­ Sikora: Ukraine is in the situation of being able to feed its tem is the precondition for privatization.And for the problem own people.The stockpiles of grain from the last cropare in of privatization, the merely one-dimensional solution of the range of 6-7 million tons. shock therapy is ineffectual. Even if half the black earth area is hit by drought, the other half will produce enough food for export to supply EIR: How is the electoral victory of Boris Yeltsin evaluated Russia and get oil and natural gas in return.In contrast to us, by leading politicians in Ukraine, for example with respect Russia is heavily dependent on imports. I to the endorsement of the Treaty of Union? Sikora: Yeltsin only has one chance to survive politically: EIR: What do you expect from your Westernpartners? How The process of forming sovereign republics must be sped up. should they act? That I'm certain of. This is equally important for Yeltsin, Sikora: From the fact that Ukraine does not need grain or Ukraine, Russia, and Kazakhstan .... food imports from the West, it! follows that the type of rela-

trade relations, and the introduotion of a Ukrainiancurren­ Toward thesovereignty cy are successfully conquered in the coming months, Ukraine has a good chance of obtaining its fullsovereign­ andprogress of Ukraine ty, and the political situation· could be stabilized. The country is as big as France (over 600,000 square kilome­ Questions about the national and economic sovereignty ters) ; with over 52 million inhabitants thesecond strongest of the Ukrainian Republic were at the center of a tbree­ republic in the U.S.S.R.; it has many mineral resources day conference which took place at the invitation of the such as coal, manganese, iron ore, and gold, and also popular democratic movement called Rukh on June 14- has important industrial capa¢ities, for example in the 16 in Kiev.As we reported last week, two speakers from computer industry.The chaiman mentioned that in July the Schiller Institute, Anno Hellenbroich and Karl-Mi­ 1990, the Ukrainian Parliamertt had passed a declaration chael Vitt, were invited to speak on the future of Ukraine of sovereignty-with a view tOi the introductionof private in Lyndon LaRouche's plan for a "Productive Triangle" ownership and other mechanisms of a free economy.This of central European development. could only be mapped out futther with the help of this In his greetings to the 300 guests, who were gathered conference, he said. in the auditorium of the Polytechnic Institute of Kiev Uni­ versity, the chairman of Rukh, Ivan Drach, pinpointed Controversy over future economic policy the drama of the present moment.He referred to the elec­ In the ensuing debates, the basic contradictions in tion of Boris Yeltsin as President of the Russian Republic conceptions of economic polity came clearly out in the and especially hailed the decision to rename Leningrad by open, pivoted around the question of how the economy its historical name, St.Petersburg. He outlined the theme can develop out of the bankruptcyof the socialist planned of the conference: the independence of the Ukrainian Re­ economy. Representatives of .the co-sponsoring group, public in the democratic process of Europe, the creation the Center for InternationalM�agement Education, pro­ of a Ukrainian currency, and the spiritual and material moted the "horse medicine" of the "pure doctrine of the renaissance of Ukraine. free market." The president of Kiev University, in his keynote One of the four American speakers went so far as to speech, expressed the hope that this conference might assertthat he had lost his suitcase on theAeroflot flight there, carry Ukraine a good way farther down the road toward and that this was a new proof that a state monopoly is economic independence and sovereignty.If the problems the worst competitor for the fu;e market.He claimed that of "de-nationalization" of the industries and real estate competition of private airlines inthe United States haddone holdings which are in the possession of the Moscow cen­ a marvelousjob of improvingse tvice.This was a boldasser­ tralpower (about 60% of Ukrainian industries), the priva­ tion, especially when one complareS the service of Swissair tization efforts, the development of extensive foreign or Lufthansa with the (bankrupt) PanAmerican!

10 Economics EIR July 5, 1991 tions must be differentiated from those with Russia. With German help, the economic motor can be effectively devel­ oped, and Europe should promote its relations to Ukraine more energetically. It is not possible to set 6 or 10 million people into motion at the same time. There has to be a phased development, and for that, the Galitsia region offers itself. The sister city relationship between Munich and Kiev is very Peru revolts against important, too. Germany ought to concentrate on one region and work really effectively there. But it should not be forgotten that relations with Russia IMF's wreckingjob are very important to us. The Soviet Union, the Russian by Luis Vasquez Republic, and Ukraine are on the verge of attaining a new quality of relations. The West must act, therefore, in a tactful and enlightened manner, and show greater flexibility in its The Peruvian population's rebellion against the government diplomatic activities and calculations. If one side were to go of President Alberto Fujimori, which is mercilessly applying back to the Cold War approach, this would make the situation International Monetary Fund (IMP) austerity dictates, is considerably more difficult. growing daily. The center of Lima and the workers' zones which surround the capital city are the scenes of daily demon­ strations by the unemployed, and of street battles between striking workers and the police sent by the government to The current crisis disperse them. These protests, usually joined by ordinary The struggle over the correct economic path is being people in the streets, oftentum into scenes of looting, stoning decided both by the ever-worsening supply and produc­ of public buildings, and burning of buses. Thesame is going tion situation, as well as by how the central autorities will on to varying degrees across the country. react to the independence struggle in Ukraine. In touring Peru, which has staggered along for years under an un­ around Kiev, for example, one observes a certain supply payable multibillion-dollar debt burden, has reached a point of simple housewares, cosmetics, and so forth, but the of total economic and social breakdown. Peru is theepicenter only ones who can buy them are those who have ration of the cholera epidemic killing thousands across the conti­ coupons. The rationing measures on consumer goods are nent, which has now reached into Mexico to claim its first aimed at the buyers who stream into the city from the victims there. Peru is also an increasingly important center of surrounding area to "buy off' from the Kiev citizens operations of the cocaine cartels, which directly or indirectly "their" commodities. A trip on public subway trains costs have hundreds of thousands of Peruvians on their payroll. 15 kopeks now, while only a few months ago it was 5 Peru, in the grip of the IMF, is Ibero-America's future. kopeks. The black market is flourishing. A foreigner has great difficulty getting a taxi that will still carry you for Labor is up in arms rubles. (Amounts as high as $40 are needed for transport There are presently some 2 million workers in Peru on ' from the Moscow International Airport to the domestic indefinitestrike, according to the head of thePeruvian Gener­ airport-according to the official exchange rate, this al Workers' Federation. That is 40% of Peru's total work would correspond to some 880 rubles, or two months' force. All of the country's largest labor federations are on wages.) strike or in a protest mobilization of some sort. The teachers' The black market problem was heavily discussed at union, representing some 300,000 workers nationwide, has the conference. Around the question of how privatization struck in protest against its members' miserable wages, will take place--either by means of outright grants to which generally are less than the equivalent of $30 a month. private businessmen, or through auctions or leasing-the The health workers' union, representing more than 250,000 problem emerges as to how a simple Ukrainian citizen doctors, nurses, and medical aides, has been on strike for could come into enough money to buy up a major compa­ more than 90 days, in parallel with the growth of the cholera ny. Some speakers proposed regulation of loans and credit epidemic. A nurse with 20 years' experience receives no lines by laws. Some, however, suggested that the black more than the equivalent of $32 a month, while doctors aver­ market should be simply legalized, in order to allow these age $50 or less. Every day, a contingent of 100retired elderly huge illegal monies to flow into the productive economy, persons can be found chained to the steps of Peru's Social something that was greeted with stormy protests from a Security Institute, to protest the miserable pensions which few listeners. "That way, criminal machinations would have condemned them to death by starvation. go unpunished," shouted the protesters. The best-paid, the oil workers, have been charged by President Fujimori with a "lack of solidarity" for their aver-

EIR July 5, 1991 Economics 11 age $200 per month wage. They have just declared a strike into the international financial community," is that the only to protest the government's decision to privatize the state foreign "investment" that has come into the country has been: oil company PetroPeru, the economy's "goose that lays the 1) a group of Korean investors who purchased an old Lima golden egg." hotel earlier this year, and turned it into a casino, complete with slot machines ; and 2) a Hong Kong banking group, 'A pound of flesh' headed by the Hongkong anc;l Shanghai Banking Corp., The Peruvian population is being starved to death to pay which bought Lima's Sheraton Hotel and Aeroperu, the na­ the IMF, charged Sf magazine of June 22. At present, "one­ tional airline, and announced .that it was going to build a third of government revenue is used to pay [IMF managing network of casinos and hotels, including in the ancient Inca director] Monsieur Camdessus and company." So far this city of Machu Pichu. year, $400 million has been paid out, and the monthly outlay The second reason for the failureof the IMF program lies, is now reaching nearly $50 million, according to Sf. This according to the Fujimori govemment itself, in its inability to figure was corroborated by Economics Minister Carlos Bo­ increase the country's tax revenue. And this inability is not logna, who declared that one of the benefits of the "bridge due to the high taxes which have Peru's small base of taxpay­ credit" of $1.2 billion that Peru is asking of a still non­ ers squeezed dry, nor because service costs of the public existent "support group" of nations, will be to avoid the $50 companies are too low. In fact; Peru is currently paying the million monthly payment to the IMF. highest price for gasoline of any producer nations. And its Various analysts, and even some congressmen, have electricity, water, and telephone charges top any Latin Amer­ charged that the Fujimori administration has paid thus far ican cost index. more than $1.1 million to the IMF, without receiving a cent The real reason for the inadequate flowof tax revenue is of credit in return. what Bush's favorite Latin American economist, Hernando Sf magazine also reports that the Gross National Product de Soto, fondly calls the "infonnal economy." The Fujimori has fallen by 20% so· far this year, and in certain industrial government, advised by De Soto, has already admitted its sectors, the collapse has surpassed 35%. The import liberal­ inability to incorporate this immense layer of "informal," or ization policy which has opened up the economy to every­ underground, producers, into the taxpaying universe. thing, even to imports of U.S. toilet paper, has caused the virtual disappearance of certain branches of national indus­ The spread of cholera try. Justo Orrellana, the president of Peru's Association of What most demonstrates the utter bankruptcy, the out­ Small and Medium Businesses (Apemipe), recently charged right criminality, of IMF presclfiptionsis the economic histo­ that nearly 250,000 small companies have gone bankrupt ry behind the cholera epidemic in Peru. As President Fujikm­ during the first year of Fujimori's reign. ori recently confessed to the Japanese magazine Nikkei, Peru Agriculture is also in dire straits. According to the Peruvi­ has lost $400 million in exports and more than 500 million an Farmers Federation, as much as 50% of arable land is no man-hours of labor-a combined equivalent of nearly $1 longer cultivated for lack of credits from the development billion-due to the cholera epidemic. These dramatic losses banks, and because of high interest rates from the commercial could have been prevented if Peru had employed an $80 banks. Poor farmers have begun to sell off their lands in view million program of emergency sanitation and small infra­ of the imposssibility of cultivating them, and the government structural projects in Peru's main cities. has assisted the process with a decree annulling the agrarian This emergency program, according to former Health reform of former President Gen. Juan Velasco Alvarado Minister Carlos Vidal Layseca, had already been outlined (1968-75). with the help of World Health Organization technicians. Despite the brutal recession that has been imposed, infla­ However, when the program was presented to then-Econom­ tion has yet to be defeated. In fact, in the past two months, ics Minister Hurtado Miller, he had invoked the authority of the monthly inflation rate has again surpassed two digits and President Fujimori in refusing to declare the country in a state now everyone, even officials of the Fujimori government, of emergency. In his own words to the Lima press at the time, are admitting to the failure of the "anti-inflation" program such a program implied "too milch expense." The "economic designed by IMP officials. program had to be saved," said Hurtado Miller. There are two fundamental reasonsfor that failure. First, Health Minister Vidal was forced to resign fromthe gov­ the liberal essence of the program, which sanctifies "free ernmentbecause of his disagreement with Fujimori and Hur­ enterprise," has made the Peruvian economy much more tado's handling of the cholera epidemic. However, before parasitical than it was even one year ago. Today, more than his departure, Vidal presented the national press with some ever, the activities which tum the biggest profit-drug traf­ explosive accusations against 'the government, charging it ficking, contraband, financial speCUlation-are soaring, with having forced him to lie to the public, and to hide the while real production disappears. The paradoxical result of existence of cholera when clinical proof of its spread in Peru this "opening" to foreign capital, and to Peru's "reinsertion was already in hand.

12 Economics EIR July 5, 1991 allowed into the Third World has been to refinance the debt (in connection with forced devaluations of currency), or in industries exploiting cheap labor and reaping a quick re­ Bush wants Wo rld Bank turn-likethe maquiladoras along the Mexican-U .S. border or the free trade zones on the China coast. 'privatization' shift The World Bank, while functioning as a primary arm of the malthusian policymakers, has nonetheless been a source of at least some development funds during the "lost decade," by Michael Billington as the 1980s have come to called in the Third World. Even that paltry flow of funds would be cut back under the U.S. Angryresistance has postponed efforts by the Bush adminis­ plan. Mulford argued that the current policy of theBank tration to force new conditions onto World Bank loans to discourages governments from privatizing their state indus­ the Third World. The U.S. wants the loans to include the tries, since these industries occasionally get access to World condition that nations "privatize" their state-owned indus­ Bank loans, while private industries do not. The opposite tries-Le., sell them off to the highest bidder. The Bush policy is clearly intended: If a governmentref uses to sell off administration expected easy passage of this change, but it its state industries, they will be cut off from any remaining hit a snag, when a meeting on June 20 of the World Bank development funds. board brokeup in disagreement. The only reported criticism of this policy. at thebank TheWorld Bank, like its twin the InternationalMonetary board meeting came from U.S. allies who don't necessarily Fund (IMF), is already infamous for the imposition of "con­ disagree with the policy, but objected to the way in which ditionalities" on loans to the Third World, demanding that Washington tried to ram the policy throughwithout consulta­ austerity conditions be imposed on target populations in order tion with the other members. However, a World Bank to meet debt payments to the international banks , or face spokesman admitted that several developing nation represen­ a cutoff of trade and credit. "Privatization" conditions are tatives voiced concern with the content of the policy. The commonin IMF demands on the Third World. However, the Washington Post pointed out that the U.S. had gone to some World Bank was supposedly designed to provide develop­ effort to try to reassure member nations that "a concern that ment assistance, and its charter allows it to lend only to public sector activities would be ignored by the Bank was governments, not to the private sector. U.S. Treasury offi­ misplaced. " cials are askingfor a change in that charter, and in the mean­ Democratic leaders in the House have charged theBush' time want the Bank to demand privatization in exchange for administration with following "a narrow ideological agenda" loans. by insisting that the World Bank concentrate on the private The International Finance Corp., the financialinstitution sector. Reps. David Obey (D-Wisc.) and Matt McHugh (D­ associated with the World Bank which lends to the private N. Y.) threatened to hold up funding for the IMF and for sector, is due for a recapitalization. U.S. Treasury Undersec­ Bush's Enterprise for the Americas if the World Bank dispute retary David Mulford told the Congress earlier in June that is not solved. negotiations among the United States, the World Bank, and the IFC had reached agreement that in exchange for U. S . AID demands privatization support for increasing the capital of the IFC by $1 billion The U.S. Agency for International Development (AID), (nearly doubling its resources), the World Bank would do responsible for U.S. government lending to developing na­ more to "promote" private enterprise in Third World coun­ tions, is also experimenting with new ways to force the "free tries-thepolite way of insisting they sell-off their state sec­ market" methods that have proven such a dismal failure in tor. The expected routine approval of this agreement on June the U.S. onto the rest of the world. Thailand, one of the 20 resulted instead in "pandemonium," as one official de­ Asian nations that is rapidly joining the "little dragons" of scribed it to the Washington Post, when "extremely sharp Taiwan, Korea, Singapore , and Hong Kong as a newly devel­ criticism" of the U.S. strongarm methods resulted in U.S. oped nation, has become the target of an experiment at AID withdrawal of support for the IFC capital increase. called the Advanced Developing Country Strategy. Thereare enormous infrastructure projects that are needed in Thailand, Infrastructure would be hit hardest especially the Mekong River development project and the The U.S. proposals, were they to be implemented, would digging of a canal across the Kra Isthmus, but the U.S. is not further reduce any source of funds for fundamental infra­ interested in such projects any longer. Instead, the strategy structure development in the Third World. The United States is to promote privatization, while trying to place the United has increasinglypropped up its collapsing productive econo­ States in a controlling position in directing investments, with my by draining resources out of the developing sector at rates a particularly careful eye on preventing Japanese domination of over $30 billion per year. Practically the only money of the Thai market.

ElK July 5, 199 1 Economics 13 William Webster. At the same time, the Bush administration has demanded that Japan and Germany follow the United States, and destroy their economic productivity. Meanwhile, Bush spokesmen see slave labor in North America as their answer to prosperity based on high-technology, stating that this is what is behind the "fas� track" North American Free LaRouchewams against Trade Agreement (NAFTA) plan, based on "rapidly growing labor camps on the Mexican b9rder where factories pay 50¢ bashing Europe, Japan per hour." The Bush allies-ba�ing approach has been taken up by some in the Democratic Party, says LaRouche, citing by L. Wolfe statements by Democratic pre$idential candidate Paul Tson­ gas, House Majority Leader Richard Gephardt, Senate Fi­ nance Committee chairman Lloyd Bentsen, and Sen. Ernest U.S. Democratic presidential candidate Lyndon LaRouche Hollings, all of whom attended the June 13-14 gathering at sent an open letter to Democratic Party officialsand organiz­ Pamela Harriman's Virginia estate. ers in June, urging them to reject a campaign of "bash Europe "This is pure, fruitless idiocy on the part of the United and Japan," and proposing instead that the party support a States," says LaRouche. "The Ifact of the matter is, since the policy collaboration with our allies in major infrastructure assassination of President John Kennedy in 1963 , the United and other projects to develop markets in the developing sector States has had no sane medium- to long-range economic and Eastern Europe. policy. The United States, over the past 25 years, has gone LaRouche, who is being held political prisoner by the from bad to worse in economic policy, especiallyby way of Bush administration at the Federal Medical Facility in Roch­ the Volcker high interest rate measures, deregulation; the ester, Minnesota, issued the statement while Democratic Par­ Gam-St Germain legislation Ilnd other mistakes� Now an ty leaders were meeting at the Middleburg, Virginia estate absolute catastrophe faces the United States and our free of Pamela Harriman to discuss strategy for the 1992 election. market guru, Britain, in partic�lar this year and beyend.We All accounts of the secret sessions, attended by several are already in a new world depression probably far worSe announced and unannounced presidential candidates, indi­ than that of the 1930s." cate that no policy was agreed on other than to attack Presi­ This idiocy is compounded by the collapse of the Soviet dent Bush's "domestic agenda." On the key trade issues iden­ economy, led by the collapse IOf Soviet agriculture. "While tifiedin the LaRouche letter, the Democrats were in complete the Soviets appear to unders1:$d that a successful economy accord with Bush trade war thrust; under the rubric of "free requires modem industry, they have failed to understand trade is fair trade," some leading Democrats are even more it also requires an independent, entrepreneurial agriculture rabid than the Bush administration in wanting to "beat up our capable of assimilating technological revolutions, typifiedby allies," as LaRouche called it. the American family farmer of one or two decades ago," LaRouche is not surprised by the idiocy of Democratic LaRouche wrote. Party policy. He points out in his letter that the party had Ironically, the U.S. Departmentof Agricultureis respon­ rejected his proposals during the 1980 campaign for "dump­ sible for collapsing American lagriculture, once themost ef­ ing then-Federal Reserve chairman Paul Volcker and direct­ ficient food-producing system on Earth. "Cargill et al., ing credit into high-technology capital and energy exports." throughU. S. Departmentof Agriculture policies and related Instead, the Democrats followed the "pro-usury policies" of measures, have been eliminating the American independent their then-chairman "Banker Charles Manatt," which have farmer in a way which is remarkablyanalogous to what Stalin led to electoral disasters. "The fact is, I was right, and those and his successors did in eliminating the independent produc­ who followed Banker Manatt and his money-men were tive farmer in the Soviet Union," LaRouche says. wrong," wrote LaRouche. The present virtualfamine in the U.S. S.R. , and growing, "George Bush's Anglo-American administration is at though unadmitted, food shortages in the United States, show war on two fronts," the letter states. "On the one hand, as marked similarities to the chronic food shortages created has been recognized in the international press, the Bush ad­ through usury in formerly colonial nations. Under the influ­ ministration has started military wars against small nations ence of the satanic Adam Smith and his "free trade" dogma, to deflect attention from the depression that has already be­ the colonial powers which seitz:ed various parts of the world gun in the United States. Against the economically strong destroyed the native independent agriculture; that is, the food nations of this planet, Bush has launched a simultaneous producers who are the counterpartof the independentfamily trade war, especially against unified Germany and Japan." farmer of the United States. Such policies are also responsi­ The CIA has definedGermany and Japan as our enemies, ble for collapsing farm produ¢tion in the developing sector. he says, pointing to statements by outgoing CIA director "What the colonial powers did, instead of enhancing the

14 Economics EIR July 5, 1991 productivity of the independent farmers who produced the food supply of those nations, was to set up collective farming of one sort or another," LaRouche reports.

Production collapse EIR te finds scant Production in both the U.S. and the Soviet Union is col­ am lapsing, writesLaRouc he. In the United States, the candidate support for NAFTA points to the collapse of infrastructure since the early I 960s , showing that we are suffering a net loss of much-needed by Harley Schlanger infrastructure. This was brought about by the wrong credit policies, which steered investment away from infrastructure­ building programs into speculation. As a result, our economy In a mid-June tour through northeastern Mexico, EIR corre­ is a shambles. spondents from Houston and Mexico City discovered that, "The U.S. economy would come to a screeching halt for in spite of intense propaganda and arm-twisting by both the lack of parts no longer produced by the United States if the Bush and Salinas administrations, there is little support for restof the worldwere to stop supplying them," the candidate the North American Free Trade Agreement (NAFTA) in the writes. "Without the productive capabilities which exist in areas which have already tasted the alleged benefits of so­ Japanand especiallyWest Germany today, the United States called free trade. economy cannot recover." Both the U. S. and Mexican Presidents have proclaimed Therefore, "it is absolutely insane and treasonous to go the adoption of this treaty as being among the highest priority on a Europe and Japan-bashing expedition at this time," he concerns facing their governments. states. �'We must, rather, instead admit that every administra­ The intensity of the deployment by Harvard's Cmlos Sali­ tion, Republican or Democrat, has acted like a bunch of nas de Gortari and Yale's George Bush to rally support for idiots on economic policyfor the past 25 years. It's time to NAFTA shows a certain desperation. Conferences wereheld learn the lesson of the mistakes. And, the worst mistake of in Nuevo Laredo in Mexico and McAllen, Texas, to drum all., would be to go on a bashing campaign, against the only up support for the treaty. economies which are equipped to assist the United States in Both conferences featured top government officials. a recovery. " Mexico was represented by Serra Puche, the commerce min­ To get this recovery under way, LaRouche proposes a ister, Gustavo Petricioli, the ambassador to the U.S., Miguel number of interrelated initiatives, including "a system of Aleman Velasco, the ambassador-at-Iarge, and local offi­ high tariffs, in the sense of the Clay-Carey Whig policy cials, including the governorof the border state of Tamauli� against the Southern cotton-slave interests of the early 19th pas. Julius Katz, the chief U.S. negotiator for NAFTA, led century. . . . Only by providing protection can we restore a the U.S. delegation, which included Gov. Anne Richardsof fragile U.S. industrial structure." Texas, Congressman Kika de la Garza (D-Tex.), and a slew However, it will not be enough to "protect" American of undersecretaries from the State Department and Com­ industry. "Nor will any amount of investment by Japanese merce Department. Also attending were the ambassadors or Europeans into the internal U.S. economy. The United to Mexico from Canada and South Korea. More than 375 States needs a large area of exports in order to get a jump­ businessmen, local politicians, and academics attended the start on economic recovery." That will be the developing session in McAllen. sector and EasternEurope as areas for large-scale infrastruc­ This assault was augmented by commercials on Mexican ture development projects. "That is the basis for aU. S. recov­ television, produced by the government, at IS-minute inter­ ery: an exportorientation towarda high-technology transfor­ vals, trumpeting the virtues of the agreement for Mexico. mation of the developing nations in the direction of an energy-intensive, capital-intensive mode of development­ The hidden agenda of NAFTA precisely the policy which Pope John Paul II has called for The theme of the speakers in McAllen was that all three in his new encyclical Centesimus Annus. And, to do that, nations (Canada is the third partner in NAFTA) will benefit you must have a reformof the internationalmonetary system, from the treaty . According to Don Newquist, U.S. Interna­ which I have called for since 1974-75," LaRouche says. tional Trade Commissioner, "The basic reason for doing a "A worldwide recovery, based on the essential role of North American trade agreement is to enhance the competi­ Japan and westernGermany in providing the high technology ti veness of the U. S. , Mexico, and Canada in the global econ­ necessaryto a recovery in the United States, is the essence of omy." While not stating that this improved "competitive­ my campaign for the Democratic presidential nomination ," ness" is based on wage gouging, using slave labor wages in LaRouche concludes. The Democratic Party must make this Mexico to drive down wage levels in the United States and the cornerstone of the 1992 campaigns. Canada, he did make two interesting admissions.

EIR July 5, 1991 Economics 15 First, he confinned that the agreement is directed against Europe and Japan, saying NAFfA would give the partici­ pants "the needed leverage" to compete with them. Secondly, he acknowledged indirectly that a fundamental purpose of Korean economic deals NAFfA is to bail out the collapsing Wall Street banks. "Face the fact of life," he said. "All three countries are moderately broke . And we've got to export to be able to service the 'aninternal matter' enonnous debts all three countries have." by Lydia Cherry Another admission that startled attendees was from Mexi­ can Ambassador-at-Iarge Miguel Aleman, who told them that Mexico will face inflation and recession from NAFfA, A prime objective of South Korea President Noh Tae Woo's as well as problems handling the population boom at the upcoming meetings with Georg� Bush July 2, will be to seek border. The lack of infrastructure-which will not improve U. S. recognition that certain economic deals between North under the tenns of NAFfA, and was not addressed by Ale­ and South Korea-as was the caSewith Germany prior to reuni­ man-is already a serious problem, especially in border fication-are "internal trade"and not subjectto outside interfer­ cities such as Ciudad Juarez, Chihuahua, across from EI ence. Earlierthis year, the two Koreas worked out a barter deal Paso, Texas. Health officialson both sides of the border have wherebythe North would obtain:much neededrice inexchange identifiedJuarez as the most likely transmission point for the for coal, but the deal has been delayed because the U.S., espe­ spread of cholera into the United States. cially the Department of Agriculture, was unhappy with it. At the same time, it has become clear that the North is battling LaRouche versus the free traders stark food shortages. The South Korean daily Tong-a Ilbo This occurred as the EIR tour got under way, to announce claimed May 21: "It hasbeen revealed that the U.S. administra­ the release in Spanish of the EIR Special Report exposing tion raised objections to the rice barter between the North and NAFfA, entitled "Auschwitz below the Border." South through diplomatic channels." From the wide-open responses to the presentations of the Noh Tae Woo's "Northern Policy," first put forth in a EIR correspondents during their tour, it is obvious that the speech to the U.N. General Assembly in October 1988, pre­ efforts of the governmentsto sell NAFfA have been ineffec­ cisely echoed U.S. statesman Lyndon LaRouche's "food tive thus far. In press conferences and in private meetings for Peace" proposal toward the Soviet Union. In the U.N. with elected public officials, we found significantopposition speech, Noh had announced: "W� must transfonnthe North­ to NAFfA. South Korean relationship, so that we can reconnect every Reynosa, in the heart of the productive agricultural sector roadway, whether a major highway or a little path, linking the of the state of Tamaulipas , is a city of almost 700,000people , two sides which remain disconnected now. Then we could be across the border from McAllen. The EIR press conference enabled to go on to develop our common land, by combining there was attended by two radio reporters and two newspa­ our human, technological, Ud financial resources." The pers. It lasted almost two hours, as reporters firedquesti ons, paved roads of South Korea abruptly turn into rubbled dirt asking for details about the real intentions behind the treaty, roads as soon as the border is crossed. what does the United States hopeto gain, do they want Mexi­ Later, Korean leaders monitored carefullythe fall of the co's oil, is there opposition to NAFfA in the U.S.? Berlin Wall, and sent numeIQus delegations to Europe to There was great enthusiasm for U.S. presidential pre­ study Gennan reunification. The government, however, is candidate Lyndon LaRouche's proposal for an lbero-Ameri­ aware that the NorthKorean economy is in much worse shape can Common Market as the alternative to NAFfA. The re­ than was East Gennany's. At a strategy meeting in Seoul porter for La Frontera has written a full-page article, and his June 17 that was presided o�er by President Noh, it was paper is interested in serializing EIR's report, "Auschwitz concluded that-the South must greatlyboost economic coop­ below the Border. " eration with the North now to fillthe economic gap prior to This has caused a scandal, as representatives from the reunification. Although this is not a new idea (it was part Mexican Chamber of Commerce asked the paper not to cover of Noh's initial framing of his now two-year-old "Northern the opposition to NAFfA, saying there is already great suspi­ Policy"), there is now much more of a chance for it to be cion against the treaty ! implemented. There was a similar response in Matamoros, where a At the same time that the NorthKorean economy contin­ representative of the Mexican Labor Confederation (CTM) ues to go downhill, the two sides are talking and taking part attended the press conference. Both he and another reporter in joint sports events. And, in recentweeks , NorthKorea has confided that the support which the Mexican government made two "turn-arounds." First, it said it will seek United takes for granted is very weak. "What we lack, is an alterna­ Nations membership separately from South Korea-a point tive," he said. South Korea had insisted would be preferable because it

16 Economics EIR July 5, 1991 would give the two sides a chance to cooperate in an interna­ is available should a company "lose its shirt" in the process. A tional organization. The second tum-around , as evaluated by Lucky Goldstar executive recently noted that the government the South , is its agreement to sign the nuclear safeguards had no qualms about a deal it was involved in, which allowed accord of the International Atomic Energy Agency and open for the North to receive badly needed hard currency. Officials, its nuclear facilities to inspection. Admittedly, this second he said, were encouraging much more trade . point is still unclear because of the rhetoric between the U. S. However, just from the economic standpoint, helping and North Korea on who does and does not have nuclear North Korea with its economic difficulties is not that easy. weapons and whose nuclear facilities should be opened for The North has been competing with "the U.S. colony" in the inspection. But, nevertheless, Noh Tae Woo has told his South for 46 years . North Korea received a donation of "rice ministers to prepare for unification , even though he says the of love" collected by Christian groups in the South some final form may not be achieved before the end of the decade. time ago . After this was made public , North Korean officials Noh Tae Woo's governingDemocratic Liberal Party was announced that the rice in question "shall be returned at greatly strengthened June 21 when it won an overwhelming once ." Recently, Nodong Sinmun, the newspaper of North victory in local elections. The Kim Dae Jung New Democrat­ Korea's ruling Worker's Party , described the South Korean ic Party, which largely supports the politics of "violence-in­ economy as a "catastrophe ," noting that "it is a tragedy of the-streets ," was beaten back significantly , winning only 165 our nation to see an ailing colonial dependent economy in of 880 seats . This has given Noh a clear mandate to pursue half of the country ." his primarygoal : reunification. South Korean press reports make clear that the govern­ Food shortages the turning point ment is studying replacing the current Armistice Agreement There have been clear signs that the North Korean food with a peace treaty and disbanding the U.S. Command, fol­ shortage has reached such a critical stage that the North Kore­ lowing North and South Korea entering the United Nations ans are being more open about their plight, however. Ac­ at the same time, which is expected to take place this fall . cording to the South Korean publication Wolgan Choson in Replacing the Armistice Agreement was the subject of a March 1991 , the food crisis is reflectedin recent slogans such speech delivered at the Korea Regional Policy Institute by as "Rice is Communism," and "From the Rice Bin Comes Foreign Minister Yi Sang-ok on June 14. He is quoted: the Public Confidence," to urge increased production of rice "Close consultations between South and North Korea are and other foodstuffs . Lately, however, the expression, "Of necessary before making any decisions on the status of the all the tasks facing us in our socialist economic construction, U.N. Command and conclusion of a peace treaty with North most urgent is to resolve the question of food ," is becoming Korea." The Korea Herald notes that concluding a peace the most commonplace. treaty is "an especially complicated question which necessar­ The Institute of the Socialist Economy, under the ily involves the status of not only the U.N. Command but U.S.S.R. Academy of Sciences, in its assessment toward the also U. S. troops in Korea in general . " end of 1990, said, "North Korea imported 1 million tons of The U.S. is not known to favor Korean reunification, and food in 1989; however, due to the 1990 crop failure , it will unidentified "foreign bankers ," according to AFP, "are telling have to import 2.2 to 2.5 million tons in the future ." Ac­ South Korea that reunification would stunt South Korea's cording to the Institute, "It is seriously feared that a famine growth for years, if not decades, andput on hold its dream of will occur this spring and North Korea is likely to ask interna­ shifting its labor-intensive economy into high technology ." The tional organizations for food aid. For internal reasons, how­ Noh govemment, however, seems to be ignoring the "advice" ever, the Soviet Union is unable to extend food assistance." as it moves in both directions at the same time. Noh envisages Both South Korea and Thailand report that the North has rapidly turning Korea into a developed country; he has an­ made overtures to buy rice. South Korean press report that nounced, for instance, that it is a "historical mission imposed as early as mid-January , North Korea proposed to buy on all of us" that Korea catch up with the Group of Seven 100,000 tons of rice, suggesting that payment be made in advanced countries in science and technology by the year 2000. North Korean products, such as pollack. Also in January, His answer seems to be to engage in every effort possible to North Korean Premier Yon Hyong-muk informed the Thai improve North Korea's economy now . premier of North Korean plans to import 1 million tons of rice and 500,000 tons of feed-purpose tapioca (a kind of. Link-up of railways proposed potato) from Thailand within the next 2-3 years . It is not One idea proposed June 21 was for the Koreas to immedi­ known if any of these deals have materialized. Problems atelylink up theirrailroads "to upgrade transportationof exports from the U.S. side derailed, or at least postponed, the count­ to the Soviet Union and Europe," as was laid out by South er-trade agreement by the South's Cheonji Trade Co. to swap Korean Unification Minister Cho Ho-chung. Seoul is also en­ rice for coal from the North's Kumgangsan International couraging private companies, in particular Korea's huge con­ Corp. Once the deal became a matter of public debate, North glomerates, to take risks in trade with the North . A special fund Korea, predictably, backed out.

EIR July 5, 1991 Economics 17 Why, may I ask, is it vital to have an index on homosexuality? Is the Western world ...and some people in the UNDP preoccupied over homosexuality?" Speaking for the Group of 77, Dr. Kofi Awoonor. the Ambassador to the U.N. from Ghana, denounced the fact that Third Wo rld leaders the UNDP used the work of "dne Western scholar who repre­ sented a particular culture whioh has been viewed by many as denounce U. N. linked to oppression and exploitation of a vast portion of our world." AmbassadorAwoonor was referring to British academ­ genocide proposal ic Charles Humana, who is the source of the index. Genocidalist Draper openly argues against aid for indus­ na­ by Michael Billington trialization or infrastructure development for developing tions, dubbing them "extrav�ant prestige projects ." With no reference to the collapse of living standards, the spreading Leaders of the Group of 77, composed of 128 developing epidemics of AIDS, cholera, and other diseases of poverty, nations, have delivered scathing attacks at the United Nations and with no reference to the massive debt burden in the against the "1991 Human Development Report," which was Third World, Draper declared that the "foundations of human released by United Nations Development Program (UNDP) development" are in "primary education, preventive health director William Draper III in May . These denunciations care , and family planning. This is where government is most have been largely blacked out of the U.S. press, despite productive, not in mining, shipping, and building steel mills widespread coverage of the press conference at which Draper and cement factories." released the "Human Development Report" (see EIR , June The report provides an example of precisely what kind 28, 1991, "Zero Growth Lobby Demands More Genocide"). of project is considered to be a "prestige project" which is Draper, who got his positionthrough his longstanding fami­ "totally inappropriate and an excessive drain on local expen­ ly ties with George Bush, personally issued the report, which diture . The Institute for Malaria Research in the Solomon stated that the increasing poverty and collapse in the developing Islands is one of several such projects funded by Japan in the sector were entirely the fault of those countries and peoples, South Pacific." due to their "lack of political will-not financial resources." Draper blamed these countries for "wasting" money on devel­ Targets of demographic extermination opment and defense spending, demanding instead that popula­ The countries condemned by the index, interestingly, tion reduction take priority over industrial production. correspond in large part to the countries targeted for demo­ A "Human Development Index" was established which graphic extermination in the secret 1973-75 National Securi­ "replaces the traditional yardstick index of per capita GNP ty Council documents commissioned by Henry Kissinger as a measure of national progress," substituting a "human and George Bush: India, Egypt, Nigeria, Mexico, Zaire , experience" index in its place. Bangladesh, and Kenya (EIR, May 3, 1991). Translated, that means that Draper's report, far from ad­ Among the nations whose representatives blasted the vocating "human development," calls for destroying the pos­ UNDP report were Mexico, Libya, China, and Singapore. sibility that Third World countries can ever develop to the Kenya's deputy representative said that his government point of entering modem industrial society-or even being "strongly questioned" any attempt to use the index "in imple­ able to feed their people. menting projects in developing countries." It is a blueprint for genocide. Such "human rights" con$iderations in the hands of the architects of George Bush's "new world order" are not only a Why have a 'homosexuality index'? tool for stopping development; they are also a threat to national Malaysian Ambassador to the U.N. Ismael Razali de­ sovereignty. American handling of the Kurdish crisis, and the manded that the U.N. Development Program, representing recent passage in the U.S. Congress of a bill which calls for all member nations of the United Nations, "consider in its completely bypassing the governments in the Hom of Africa in computation on human freedom and human rights, the right dealing with aid to refugees, demonstrate thatBus h's new world of every human being to food , shelter, employment, educa­ order will ignore the sovereigJllty of any nation deemed to be tion, health, and to be free of disease." The UNDP is not, he out of line with his and Draper's policies. insisted, "despite financial contributions, a vehicle of donor Draper himself, in response to the broad and virulent countries to apply conditionalities on so-called human rights attacks on his program from the nations for which, as head issues." The U.N. must be nonpartisan, and not be "suspect­ of the U.N. Development Program, he is supposedly respon­ ed of being surrogates for one-sided Western values which sible, asserted thatthe report "needs no defense and it certain­ in the process insult the traditions and values of others .... ly needs no apology. "

18 Economics EIR July 5, 1991 in the form of wage freezes and unpaid furloughs. United States In California, Gov. Pete Wilson's administration went into the last week of June threatening to lay off over 22,000 state workers, unless the unions agree to equivalent spending cuts in pay and other benefits. If they reject a 5% pay cut and two payless workdays a month, 9,380 will lose their jobs. If the governoris not granted authority to grab $1.6 billion from July 1 budget cuts the public employee pension fund, another 12,275 workers will be laid off. mean mass layoffs New York State laid off 1,300 workers on July 1, and Gov. Mario Cuomo announced June 21 that he would soon lay off another 4,000, despite the fact that the state's fiscal by H. Graham Lowry '92 budget has already been passed and put into effect. New York City began laying offnearly 8,000 city employees on Public employees across the United States face mass layoffs , June 17 in order to cut them from the payroll by July 1. City as budget cuts for the new fiscal year go into effect for most budget-cutters plan to eliminate a total of over 20,000 jobs cities and states on July 1. The resulting nationwide increase through layoffs and attrition over the next 12 months. in unemployment will further shrink revenues at every level Other layoffs planned for the coming fiscal year include of government, at a time when their rate of collapse has 5,600 in Massachusetts; 5,300 in Virginia; 2,600 in Connec­ forced major monthly-and even weekly-increases in pro­ ticut; 4,400 in Illinois; and as many as 8,000 in Michigan. jected deficits. The combination of huge budget cuts and steep tax increases will deal another crushing blow to what Teachers on the chopping block remains of the U.S. economy. Cuts in state aid to local school districts are forcing further The revenue shortfalls from a vanishing tax base continue waves of teacher layoffs . In Alabama, 2,000 are expected to to widen, despite the fact that half of the states increased be let go before the end of June. Minnesota schools are taxes a year ago, and half of them have raised them again for planning to discharge another 1,500, while in Indiana pink the coming year. Twenty-nine states had to make further slips may be sent out to as many as 5,000 teachers. Twenty­ budget reductions to cover deficits which grew throughout nine states have already cut aid to higher education as well, the past fiscal year, and they are still considering a total of in some cases closing entire campuses. The bankrupt city of $8 billion in additional cuts, just to get through to July 1. Chelsea, Massachusetts, placed under state receivership June Studies for the Congressional Budget Officeestimate that 11, fired all of its public school teachers the same day. budget cuts and tax increases by state and local governments Welfare measures adopted in a number of states will also could total $50 billion in the next fiscal year, or roughly 1 % affect public payrolls. On June 14, Massachusetts created a of the nation's supposed GNP. Yet the National Conference mandatory "workfare" program for welfare recipients and a of State Legislatures estimates that 21 states will have deficits 90-day residency requirement for welfare benefits. Aid to totaling $35 billiop just by themselves. A leading New York Families with Dependent Children (AFDC) and General Re­ municipal bond investment house is privately predicting that lief recipients without children at home and who are not the total state and local budget deficits for the current fiscal disabled, will be required to work 20 hours a week for their year could reach $140 billion! cities or towns in order to receive benefits. This will simply The. worst cases--California, New York, Connecticut, increase the degree to which cities resort to further layoffs of Texas, and Pennsylvania-all publicly project multibillion­ city employees. dollar deficits, with California's estimated as high as $15 The absurdity of attempting to balance budgets without billion. All of those but Texas, plus Maine, New Hampshire, completely overhauling current policies and restarting the and Louisiana, are working on spending cuts and tax hikes economy, was dramatically demonstrated again in the case totaling more than 20% of their entire budgets. of Maryland on June 25. State fiscal officers told a stunned joint budget committee of the legislature that their projected Layoffs rising rapidly deficit for the fiscal year beginning July 1 was already a At least a score of states are already planning sizeable whopping $300 million, in a budget of $11 billion. layoffs of public employees, and if New Jersey is any exam­ Only $200 million was expected to be in the state's trea­ ple, the numbers will rise rapidly. A fiscal 1992 deficit pro­ sury on that date, prompting one legislator to make the black­ jected at $812 million in May prompted 3,000 layoffs . Now humored suggestion that it be used to purchase Maryland New Jersey projects a $1.5 billion deficit, and is preparing lottery tickets in hope of a partial bailout. Worse yet, the to lay off another 6,000, bringing the total to 9,000 out of a state's economists project the revenue shortfall for 1993 to statewide work force of 70,000. Additional cuts will come hit $573 million.

EIR July 5, 1991 Economics 19 'Zero risk' standard fo r pesticides makes no sense in the realwo rld by Robert D. Sweet

Robert D. Sweet is Professor Emeritus at Cornell Universi­ minute quantities must be available before the chemical can ty'sCollege of Agriculture and Life Sciences, Department of be marketed, but no scientific techniquesexist that guarantee Fruit and Vegetable Science. Professor Sweet has had 50 accurate measurements for "zero" for the case of pesticides­ years experience infruit and vegetable research and cultiva­ or for any other substances. tion practices. Let us examine some everyday examples of toxicity. It During the past two decades of decline in the economy, is medically sound to state that: heavy cigarette smoking over the scientificmethod of evaluation has come under attackfrom a period of years often causes bealth problems. Yet those of superstition, vested interests, and governmentcircles . A re­ us non-smokers who are exp0l>ed to just a whiff of smoke a cent example was provided by some testimony at a June 12 few times a week are not concernedabout contracting health hearing bythe House Agriculture Subcommittee on Domestic problems. However, what level of exposure to cigarette Marketing, Consumer Realations, and Nutrition on "The smoke presents zero risk to all people regardless of age or U.S. Fruit and Vegetable Industry in the 1990s." Offi cials health status? The zero-risk advocates state that since this from the Environmental Protection Agency, the Department level is so difficult to establish, the only practical answer is of Agriculture, and other governmentde partments repeated to ban all smoking. Another example: We need oxygen to blatantly unscientific views of horticulture and soil science. live, but it must be in appropriate amounts. The air we breathe They calledfo r low-cost, cheap-labor agriculture, couching normally contains about 20% oxygen, and our bodies func­ their concepts with praisefo r the merits of " organic" produce tion quite well with these levels. However, under certain and "zero-risk" pesticides. Moreover, the administration is conditions, pure oxygen for a limited time is helpful. Ath­ backing the shift of much of u.s. vegetable production to letes, mountain climbers, premature babies, victims of em­ northern Mexico under the "North American Free Trade physema, etc . often need pure oxygen. However, severe Agreement" negotiations, which, according to studies byfac­ damage can be done with prolonged use of pure oxygen. ultyat Texas A&M University, willinvolve mining of the soils, Conversely, deprivation of oxygen for as much as a half hour very low yields, and biological degradation, not to mention or so, can result in death. serf-type labor practices-Marcia Merry. Similar situations arise regarding our needs for water, but at the same time, excessive water causes illness and even A small, but highly vocal group is calling for "zero risk" as death. It is obvious that toxicity of a substance to humans is the basis for regulating pesticides. This extreme view is not not a clear-cut process whereby certain substances are always supported by medical experts , toxicologists, or biological "bad" and others are always "good." As toxicologists pro­ scientists. These highly trained professionals are well aware claim, it isn't the substance per se that causes toxicity, but that zero risk for pesticides is just as untenable as was the the dose and exposure. Agric;:ulturalists believe those who law passed about 40 years ago which specified zero levels in advocate "zero risk" for pesticides actually want to ban all foods of added substances which could cause cancer. pesticides and are using this slogan as a tactic or strategy for Many people cannot understand why wonderful-sound­ gaining their goal. ing slogans or laws such as those proposing zero risk just do Some localities and states propose, and sometimes pass, not work. They need to be reminded of a few basic facts pesticide regulations which put local producers at a serious about toxicity and about "zero." Absolutely nothing is toxic competitive disadvantage, but which do little to influence the if the dosage and exposure are sufficiently low. Conversely already high quality of our foods. For example, 50-75% of absolutely everything is toxic if the dosage and exposure our fruit and vegetables contain no pesticide residues at any are sufficiently high. As to "zero," this is a problem of the detectable level whatsoever. The remaining supplies contain technology available to measure a particular substance at low permitted amounts which are �bout 1,000 times below what levels. For pesticides, technology for measuring extremely medical experts believe might cause toxicity. Regulatory

20 Economics EIR July 5, 1991 agencies often report about 1 % of samples as being in viola­ risk of toxicity from chlorination. Do we demand zero risk? tion. However, since these are not consistent and vary from No. The benefits from chlorination are enormous. Water­ crop to crop, locality to locality, and season to season, they borne health risks like typhoid fever are practically elimi­ do not pose a health threat. Of course, a persistent, consis­ nated by this process. Instead we try to have well-trained tent, supplier of crops with unsafe levels of pesticide residues personnel running our municipal water systems so that risks is soon caught and put out of business. are minimized-but not zero. Some anti-pesticide people try to convey the idea that Do we demand zero-risk shelter? Are all our homes re­ most troubles from pests are really caused by or increased in quired to have zero risk from natural disasters such as torna­ severity by the use of modem pesticides. What utter non­ does, earthquakes, lightning, floods, etc.? Of course not. sense! Ever since recorded time, pests have been mentioned Each of us makes decisions as to the degree of risk we are as causes of famines. Early tribes often were forced to mi­ willing to accept and how much protection we can afford. grate in order to find food ! Even as recently as the 1840s, Naturally we also consider the kinds of natural disasters like­ potato blight caused massive starvation in Ireland. It precipi­ ly to occur in a given region or at a particular site. Certainly tated a migration of hundreds of thousands to the United areas of Californiahave more risk of earthquake and less risk States. The culture of both Ireland and the U.S. was pro­ of tornadoes than do areas of the mid-South. foundly influenced. While potato blight is still a threat to Do we demand zero risk for air quality? Here, man really potato production, effective fungicides are utilized at the shows his colors. Two primary causes of unsafe air are auto earliest signs of the disease, and rarely is more than 1 % of emissions and electric generating plants. While the govern­ the crop lost. What a boon to the starving Irish, effective ment struggles to require lower auto emissions; the people fungicides would have been! still drive an average of 15,000 miles a year, with much of For centuries, scholars have taught us th{( Malthus thesis that distance covered when only one person is in the car.The that man reproduces at a faster rate than he discovers how to same story for power plants . Only in the last 10-15 years grow more food, and thus, it is argued, massive famines have we made attempts to have energy-efficienthom es. But are the natural factor regulating global population levels. while doing so, we have added all kinds of gadgets in our Happily, in the last 40 years, this pessimistic view has been homes including electric tooth brushes, can-openers, etc. laid to rest. Currenttechnology , including synthetic chemical There has been no major reduction in theamount of electricity pesticides, permits production of food for millions more per­ the average family consumes. Another alternativeis to switch sons than now exist. Most sociologists claim that starvation, electric generating from fossil fuels to nuclear power. There malnutrition, food shortages, etc . are due to political, eco­ is no question that air emissions would be lowered, but the nomic, and sociological factors far removed from agricultur­ effects of a nuclear disaster still loom rather large in the al technology. minds of the public. But where is "zero risk" when creature Philosophically, the call for zero risk in regard to pesti­ comforts are involved? cides, and not for the many other areas of our lives that are regulated by the government, is very difficultto understand, Aspirin could not pass unless, of course, as mentioned earlier, this is just a "scam" What about zero risk in the medical arena? Medicines for those who really wish to ban all pesticides. The list of must go through about the same kinds of tests for safety as areas which could be included in a zero-risk argument is do pesticides before they can be marked. In fact, old standbys almost endless and includes every conceivable aspect of our such as aspirin could not pass current tests for safety. Who lives such as food, air, water, shelter, education, health care, advocates "zero risk" for either old or new medicines? The transportation, and so on. public asks for reasonable chances for efficacy, and a reliable Do we demand zero risk from our foods? Poultry con­ explanation of possible adverse effects. The doctor and pa­ sumption has increased enormously in the last 20 years . tient arrive at decisions on an individual basis, and zero risk However, poultry is a major source of salmonella, a bacteri­ isn't demanded by either. um which can cause serious intestinal upsets, and even death. Zero risk is a powerful political and emotional slogan, but Do we demand zero risk or banning of pOUltry? No, it's a it makes no sense in the real world. We could not live under fine food , and its benefits to people are enormous. Instead, such constraints, because everything connected with our lives we ask for vigorous enforcement of sanitary slaughtering carries some degree of risk. Those who single out pesticides requirements and caution the public that all pOUltry must be for the unworkable slogan of zero risk probably fall into one of thoroughly cooked so that salmonella, if present, will be two categories: They are unaware of how safe our presentfood killed. This is just one of many food examples. supplies are, or theydo not understand theterrible consequences Do we demand zero risk from water supplies? Practically to world food supplies if zero risk from pesticides ever became every municipality has a central watersystem , and most use a global policy. Indeed Malthus's pessimistic view of man and chlorination as an important part of their water processing. his capacity to reproduce versus his inability to grow enough Yet scientists have shown that there is a small but measurable food would once again become accurate.

EIR July 5, 1991 Economics 21 Banking by John Hoefle

House seeks to curb Bush bailout tions showed that $9.4 billion in re­ The Banking Committee is throwing a monkey wrench into the serves had been required. The GAO found that bankers President's 1992 reelection bid. "have a strong incentive" to delay marking down their assets because it increases their losses and decreases their capital. "It is likely that many T he House Banking Committee, in and the Comptroller of the Currency open financial institutions have over­ its first full week of markup on the and the enforcement of capital stan­ stated the value of their troubled Bush administration's bank reform dards, adopting a measure to force fed­ assets," the study said. bill, took dead aim at the President's eral banking regulators to close any Treasury Secretary Nicholas plan to paper over the insolvency of bank whose capital falls below 2% of Brady insisted that due to the banks' the banking system until after the assets. stronger capital position, the banking 1992 elections. Under the committee plan, a man­ crisis and the savings and loan crisis The heart of the Bush scheme is to datory series of actions would be trig­ "areas difftrent as chalk and cheese." allow the big banks to stay open, no gered once a bank fell below the cur­ But it is becomingever more clear that matter how bankrupt they may be, rently required 3% capital-to-assets the only real difference is that the while providing them all manner of ratio. The bill would require that any thrifts are further along the curve of regulatory and financial assistance. It undercapitalized bank file a capital collapse than the banks, and that is precisely this scheme that the bank­ restoration plan with regulators, and where the thrifts go today, the banks ing committee targeted. would impose increasingly strict mea­ will follow. tomorrow. From the opening bell, the com­ sures as capital deteriorated. When the Bush administration mittee, led by chairman Rep. Henry However, according to the bill, firstpresented its S&L bailout propos­ B. Gonzalez (D-Tex.), made it clear once a bank drops to the "critical capital al in 1989 ,it claimed that $50 billion that the administration's power to level" of 2% of assets, "regulators must would be more than enough to resolve prop up insolvent banks indefinitely, close the institution within 120 days , the crisis. Thus far, the administration through regulatory forbearance and unless they find some other action to has spent $80 billion, and is now be­ "backdoor bailouts" arrangedthrough be more advantageous to the insurance fore Congress seeking an additional the Federal Reserve's discount win­ fund"-thatis, to the FDIC. Even if the $80 billion just to fund the bailout dow , was in jeopardy . "other action" option is taken, "at the through 1992. To the untrained eye, As we reported last week, the Fed end of six months , if the institution is that would seem to be $160 billion, has been pumping billions of dollars still below 2% capital, regulators must more than the latest official adminis­ into insolvent and nearly insolvent close the institution." tration projection of $132 billion. banks, with the Federal Deposit Insur­ Since it is unlikely that any bank Nevertbeless, the Bushmen insist ance Corp. (FDIC) ultimately liable for which reaches the "critical" stage can that the outlays do not exceed projec­ repayments if and when the banks fail. recover within such a short time-if tions, because the figures should be Gonzalez had introducedan amend­ at all-the bill in effect mandates that calculated in 1989 dollars, not the ment to limit Fed discount window such banks be closed, and either liqui­ 1990 dollars they had previously loans to any bank to no more than five dated or sold with assistance from the used. Brady's repeated statements to consecl,ltive days in any three-month FDIC. Congress about 1990 dollars, the period, but he temporarily withdrew the For capital standards to be mean­ Treasury insists, was due to "a typo in measure after a meeting withFed chair­ ingful, however, the banks must stop the transcript." man Alan Greenspan. The committee lying about their financial condition. Very clever. With one stroke, the and the Fed will try to reach a compro­ The General Accounting Office Bushmen explain away $28 billion mise on the matter, but banking com­ (GAO), in a recent study of 39 banks and set a precedent for next year, mittee staffers insist that some form of which failed in 1988 and 1989, when they can claim that their $50 bil­ the measure will bereintroduced before showed that the banks' actual loan lion forecast was a "typo"-they the bill leaves the committee. losses were 348% of their loan loss meant to say $50 trillion. And some With the Fed under fire, the com­ reserves. The banks had set aside $2. 1 people say tbe administration doesn't mittee turned its attention to the FDIC billion, while post-failure examina- know what it's doing.

22 Economics EIR July 5, 1991 Report from Rome by LorenzaMaria Saini

University reopens to nuclear debate by the 1987 anti-nuclear referendum, In Italy's anti-nucle ar referendum, "witch-doctors won over the traced an extremely alarmist pictureof the national energy situation. Installed physicians, astrologers over astronomers. " electrical capacity is no longer capa­ ble of meeting the national demand, and thus Italy is no longer able to con­ tract the prices at which it buys im­ ported electrical power from a posi­ T he Schiller Institute has picked up remarks especially to the youth, and tion of strength. And ironically, the the "hot potato" of nuclear energy in expounded very sensitively some re­ electricity produced abroad and im­ Italy, by organizing on June 5 a debate flections which future scientists and ported into Italy is the equivalent of on "Nuclear Energy, High-Speed technicians have to take into account, six units of the nuclear plant at Caor­ Trains, and Telecommunications: In­ beyond their personal aspirations. At so, one of those shut down in the after­ frastructure for a Free Europe," at the the end of World War II, for example, math of the referendum. From this Engineering Faculty of La Sapienza for him as for many of his university standpoint one cannot even say that University here. After a long hiatus, classmates, there were no doubts Italy has refused to use electricity pr0- expertsin the various fieldsof nuclear about their role-they had to rebuild duced from nuclear sources. energy and telecommunications were the country. Now, he said, that clarity Dr. Giovanni Pellegrineschi, se­ able to talk to students about the many of purpose is gone, and we have even nior scientific consultant to Alenia hopes and projects which, despite the come, with the exit of nuclear power, Space Co.-after an interesting aside greenie fad , are still pursued by Italy's to a further impoverishment, so to on the history of satellites launched scientific and technical elite. speak: An entire stratum of techni­ into space, conceived as a new opera­ The speakers included spokesmen cians and engineers , not just nuclear, tional space, like the water of the for the national electrical utility but linked to the so-called armature oceans when Spain and England were ENEL, the national alternative energy of the plants , no longer exists. In the maritime powers-spoke about new agency ENEA, Alenia Space Co. , the clash between the village witch-doc­ communications technologies. Direct Assotrasporti transport firm, and the tor and the physician, between the as­ satellite broadcast technologies are Engineering Faculty's Transportation trologer and the astronomer, the 1987 very useful to reach areaswhere com­ Institute. They addressed an audience referendum against nuclear power munications are backward or down­ of students and representatives of top took Italy back to the old beliefs, he right lacking, because. they allow national companies. charged. "leapfrogging" over the need to build The forum was introduced by Dr. Professor Federighi explained traditional infrastructure. These po­ Giuseppe Filipponi from the Schiller how today the energy problem is glob­ tentials are bogged down by a legisla­ Institute, who discussed the economic al and requires an international ap­ tive and bureaucratic complex which development potentials created with proach in the general framework of cannot keep pace with the potentials the collapse of the Berlin Wall. After development, of resources, of over­ the new techniques afford. outlining broadly the main infrastruc­ coming imbalances, and of safe­ Dr. Catella, president of Asso­ ture projects which these changes guarding the environment. After ana­ trasporti , decried a discrepancy be­ could allow, which offer interesting lyzing the limits of fossil fuels and tween statements of principle and the chances for intervention by Western their impact on the environment, Fed­ practical effects produced when these European countries, Filipponi under­ erighi pointed to the new nuclear tech­ are translated into law. He suggested lined the need to build throughout the nologies as the way to limit gaseous that one way to rebalance the global continent, in the medium term, at least emissions into the atmosphere, in or­ transportation system is to develop in­ 250 nuclear plants-an undertaking der to satisfy the growing energy termediary modes between the vari­ which is feasible thanks to new reactor needs which will derive both from the ous systems, even the alreadyexisting technologies which are more ad­ development of the East European one of internal navigation. Among vanced both technically and in terms countries and of the Third World. initiatives to cut current costs, he an­ of safety. Engineer Paolo Fornaciari, the nounced a conference of experts to Professor Federighi, a member of ENEL planner who signed the Unified stop the veritable epidemic of cargo the ENEA management, directed his National Project which was blocked theft from auto-trains.

EIR July 5, 1991 Economics 23 BusinessBrief s

Ibero-America was issued. "Central America offers excep­ • Some i 2,000 newly drilled oil wells tional conditions for the cholera epidemic to can't betapped for lack of pipesand technical Argentine economic spread among its vulnerable inhabitants, and equipment. plan disintegrates reach Mexico," Mexico's Excelsior newspa­ • Low productionof basic chemicalsand perwamed its readers in a dramatic front-page physical breakdownsin the pharmaceuticalin­ story June 18. "Half the population lacks basic dustry will meanthat only 40% of needed sup­ The Argentine governmentis franticallytrying health services, potable water, sewage, and plies of medicine can be produced. to obtain a $1 .2 billion standby loan from the other sanitation services, among other priva­ • Co�ercialexchange withEastemEu­ InternationalMonetary Fund, but the econom­ tions ." The Pan-American Health Organiza­ rope, which \vas at 78.9 billion transferable­ ic program on whose success the IMP agree­ tion predicts 600,000 cases of cholera in Cen­ rubles in 198� , droppedto 57 .7 billion in 1989 ment depends, is in trouble. Announced by Fi­ tral America alone . and virtuallyto zero in the course of 1990. nance Minister Domingo Cavallo last March, In several countries there,gov ernment ex­ IfindustJ!y is not put back in shape, andif the "convertibility" plan established a strict penditureson health areless than$1 0 percapi­ thereconveniion of selectmilitary production paritybetween the dollarand the national cur­ ta peryear, Exceisiorreported.. On an average , to civilian p$'poses doesn't work for lack of rency, the austral. Cavallo promised at that there is only one doctor per 8,600 Central capital input, Falin warned, 1.5-2 million time he would not print money unless it were Americans. One in 10 children dies beforethe skilled worlq:rs and engineers will emigrate backed up 100% by foreignreserv es. Now, he age of five;two-thirds of those who surviveare fromthe Sovjet Union to seek emplyoment in appears to have abandoned that plan. malnourished. In Honduras , El Salvador, and the West. If, the economy continues to col­ Unable to generate the $300 million Guatemala, four of every five children suffer lapse, "Drarrlaticdevelopments which nobody monthly surplus demanded by the IMF, Caval­ from malnutrition. here can pre4ict yet, will occur." In this con­ lo has been forced to dip into reservesto make President Serrano's flat statement that text, Falin wbuld not rule out a military coup. payments on the foreign debt, and replace the nothing can bedone in Guatemala, means that hard-currency reserves with dollar-denomi­ cholera will soon devastate the impoverished nated foreigndebt bonds,known as Bonex. In southern states of Mexico , the governorof the 15-23), one week (May the value of Bonex Mexican state of Oaxaca told EIHeraldo June Economiq Theory bondsincluded as partofthereservesrose from 10. He reported thatearlier cholera epidemics , : $131 million to $411 million. which spreadalong commercialroutes and riv­ Soviet remier hits Argentine analysts say the use of Bonex ers which pass through southeastern Mexico p represents a "dangerous tendency" which is and Guatemala in 1833, 1849 , and 1854, Harvar(l economists tantamount to printing money-something killed more than 200,000 people. Cavallo said he would never do . It means that The first 17 cases reported in Mexico oc­ Soviet Prime Minister Valentin Pavlov deliv­ the minister's plan, and his promises of stabi­ curredin the center, "leaping" over the vulner­ ered some caustic comments about Harvard lizing the economy prior to the October con­ able south, probably via airplane routes. University economists ' views on the Sovietsit­ gressional elections, is in jeopardy . Many uation, in his;speechbefore the SupremeSovi­ economists are predicting that by October, et June 17. "t know certaingentlemen at Har­ only 70% of the australs in circulation will be vard," he said. '''They do not knowour life , or backed byhard-currency reserves, and by De­ Soviet Union our views on life. They impose their criteria cember, that figure will drop to 50%. and tell you how to live and work."Deriding Falin outlines the Gregory: Yavlinsky-Harvard jointly au­ thoredplan f� the Soviet economy as "a pretty industrial collapse piece of paper," Pavlov stated sarcastically, Disease "We will soqn have more programs thandis­ Soviet industrial output in the first months of sertations" in the U.S.S.R. Cholera spreads 1991 has declined 5.6% as compared to the For the S4:C0nd time in a week, Pavlov fa­ first months of 1990,Soviet Central Commit­ vorably conttasted the European view toward to North America tee Secretary Valentin Falin told an audience helping the Spviet Union with that of the U.S., in DUsseldorf, Germany June 18. saying the EUropeans were more cooperative. Seventeen people came down with cholera in He reported: "I know the U.S. system," he said. "To get the stateof Mexicoon orbefore June 20, mean­ • Production of metals of all kinds is money, you 'need to go to Congress and say ing that the disease has spreadfrom Colombia, down 60%. that the Soviet Union needs help, you need to Peru, where it has reached epidemic propor­ • Miners strikes and declining coal pro­ stand in a queue. We have toget in line behind tions, into North Americ a. duction badly affectedthe steel sector: Of 121 Israel and Nicaragua. If someone wants getto Even as the cases were reported , a warning blast furnaces, 67 areout of operation. in line, fine, but without me ."

24 Economics EIR July 5, 1991 Brif1ly

• EUROPE, not Asia, may domi­ nate the world economy, Singapore Premier Goh Chok Tong told the Eighth Pacific Economic Coopera­ tion Conference in Singapore May Pavlov stated bluntly: "I do not believe the decided jump above the [Government Ac­ 20. If Eastern Europe and even the U.S. will give us economic aid without condi­ counting Office] GAO's findings of in 3% Soviet Union were integrated, "with tions."He said thatpref he erred vea perspecti of 1989," the study said. A Bureau of National a combined population of over 700 ''positive foreign investment" in the U.S.S.R., Affairs surveyreports that 82% of employers million, Europe could well pull the ratheraid than with conditionshed. attac indicate that they would consider replacing center of gravity of the world's econ­ their work force if they were hit with strikes. omy towards it." Of particular note is that 55% of the work­ ers who went out on strike last year did so over • BANQUE BRUXELLES Lam­ health care issues, and these accounted for Domestic Credit bert's chief economist, Roland nearly 70% of those who were permanently Leuschel, called for fixed exchange replaced. Credit card defaults rates to avoid monetary disaster in the Wall Street Journal June 18. Calling threaten securities the world monetary system an "inter­ national casino for speculators," he A soaringrate of defaults by creditcard holders Science and Technology warnedthat if the U.S. dollaris driv­ endangers the market for credit card-backed en above two German deutsche­ securities, the Wall Street Journal warned on ANC stresses need marks, or if the chronic U.S. trade June 18. deficitturned into a surplus, the sys­ At the endMay of , the reported,paper de­ for electrification tem would collapse. faults had exceeded 6% for three consecutive months on $450 million in credit card-backed The African National Congress (ANC) is • EUROPE needs continent-wide, secmities issued by Maryland's Chevy Chase "acutely mindful that economic growth is to a integrated networks of infrastructure, Savings Bank-ooe of the largest thrifts in the great measure driven by advances in technolo­ including transportation, telecom­ Washington, D.C. area-opening the door to gy ," Valli Moosasaid at the ANC's firstcon­ munications, energy, and research holdersof the secwities demanding that ceSB ference on science and technology last Decem­ institutes, Fiat's Umberto Agnelli pay off holders before the securities mature. If ber,Nature magazine recently reported. told construction executives in Rome 25% of holdersthe signify such desirein writing , Moosasaid that the ANC regards electri­ June 21. it will be the first time ever that a credit card­ fication as a priority because of health prob­ backed security was forced intopayback. early lems arising fromwood-smoke pollution in the • AFRICAN COFFEE is so un­ TheJournal noted that since such securi­ townships, and the expectation that electric derpriced that economic recovery for ties werefirst issued in 1987, they have been light would enable peopleto study at night. Yet the continent is impossible, Eliyah one of the most desireditems on Wall Street, theproblems associated with electrificationof M wangale of Kenya, chairman of the and over $5 1 billion have been sold. Howev­ the townships are financial, he said. Inter-African Coffee Organization, er, Moody's Investors Service notes that There was also concern at the conference told a "coffee summit" in Nairobi in credit card deliquencies rose to 6.13% in aboutthe declining proportionof South Africa's mid-June. Export coffee prices have March, compared to 4.64% in March 1990, Gross Domestic Product spent on research and fallen by more than 40% since 1989. ajumpof one-third, while defaults have risen development, and the conference urged a com­ 42% from 4.08% to 5.8%. mitment to spending a certain percentage of • JAPAN will develop a space GDP on R&D. The shortage of scientific and shuttle, its National Space Develop­ technical manpower in South Africa, and its ra­ ment Agency said June 17. It an­ cial composition, also occupied the conference. nounced it would start an R&D proj­ Labor Prof. C.C. Mjojo, president of the Net­ ect in 1992 to put an unmanned work of African ScientificOrganizati ons, in shuttle into space by the year 2000. Strikingworkers face a closing address, explained how the net­ work is attempting to convince African • GREIFSWALD in eastern Ger­ permanent replacement heads of state of the importance of science many on the Baltic coast, with four and technology in the development of the Soviet nuclear reactors shut down by The numberof strikingworkers who wereper­ continent. It has already persuaded President unified Germany's safety regula­ manently replaced skyrocketed last year, ac­ Daniel Arap Moi of Kenya to convene a sum­ tions, has applied to compete to be­ cording to an AFL-CIO study reported in the mit of 16 leaders to focus attention on the come the seat of the International Fu­ AFL-CIONews . "Itis possibleto estimate that issue. Mjojo added that his organization was sion Research Center, to be built 11% of the workers participating in large awaiting a signal from the ANC to begin talk­ sometime in the late 199Os. strikeswere pe rmanently replacedin 199O-a ing to South African scientists.

EIR July 5, 1991 Economics 25 ITillFeature

Did unemployment top 32 million in U. S. in 19901

by Laurence Hecht

What is the real unemployment rate in the United States, and how do we get the governmentto tell the truth about it? Millions of people who are out of work and want a job are simply not counted by the government as unemployed. Millions more who work part-time jobs but need full-time work are also not counted. Yet those who work even one hour in a week get counted as employed. The result is a scudalous papering over of the real job crisis in the U.S.A. Using only the data available to and collected by the government agencies charged with this task, we will show you the truth behin9 the so-called "official" unemployment rate: where it comes from, how it is calculated, and what is left out. Then we will show you how to calculate from this same data, measures of unemployment 2-3 times what is reported. Pay attention. This is something you can do some!thing about. The Department of Commerce and the Department of Labor, and their respective Bureau of the Census and Bureau of Labor Statistics, work for you. The guidelines and defini­ tions of terms they use are set by political debate . What you are hearing now is a self-serving tale from the same government whose economic policies are bringing us near to ruin. These agencies can be made to tell the whole story. Knowing the truth is the first step toward that.

What is 'unemployed'? After reading this, you will never again regard the monthly "unemployment rate" as what its name sounds like it is. If Presidents, the media, and even so­ called "opposition" congressmen wish to continue to cite these partial and self­ serving statistics, contrived to mask the really serious levels of unemployment and suffering in the U.S. work force, they may do so. But let us now end their ability to claim they didn't know. The monthly figures known as the unemployment rate and the total unem-

26 Feature EIR July 5, 1991 As the unemployed become discouraged in finding a job and stop their search. the government no longer counts them as among the "unemployed."

ployed, which you see published in your newspaper or de­ One hour of work in a week is a "job" by this standard. scribed on radio or television, are not a measure of the total People not at work because of illness, bad weather, vacation, number of people out of work. The figureincludes only those labor disputes , or other reasons are counted as employed. people from a statistical sample who tell a Census Bureau Members of the ArmedForces statidned in the United States poll taker that they, or the person in their household on whom are also included in the total employbd. they are reporting, made a specific effort to find a job in the If a person does not have a job dr business, that does not previous fo ur weeks. Nearly 6 million people who want ajob mean he is then counted as unemployed. To be counted as are immediately written off by this procedure and classified officially unemployed, he or she m st have made a specific as not in the labor fo rce. But the governmentknow s they are effort to find employment within th�� last four weeks--even there. Let us look inside the process of data collection that if that person wanted a job and hadi specific reasons for not leads to this result. looking during that time. (There at only two exceptions: If Every month, trained interviewers working for the Bu­ you were laid off and waiting to be recalled to your job, or reau of the Census visit about 60,000 households as part of were waiting to report to a new job within 30 days, you would the monthly survey known as the Current Population Survey qualify as unemployed.) (CPS). The households, which are constantly changing, are scientifically selected to represent the civilian non-institu­ What is the 'labor force' ? tional population (that is, people over 16, not in the military, If you did not work at all during the survey week, and and not institutionalized in public or private facilities). Some­ you did not meet the strict criterion bf unemployed now used one from each of 57,400 households, representing 1,973 by the Bureau of Labor Statistics, ybu fall into a second and geographic areas in the United States, is actually t'alked to very large category known as not i� labor fo rce. Everyone each month. Respondents are asked about the employment over 16 who is not institutionalized is going to be either in status of each member of the household 16 years of age or the labor fo rce or not in labor fo rde. . over during the calendar week, Sunday through Saturday, As of March 1991, we had a nod-institutional population I which contains the twelfth day of the month. This is known of 190,703,000. Of these, 126,78�,OOO were in the labor as the survey week. fo rce, and 63,917,000 were not i labor fo rce. The total Any household members who did any work at all during labor fo rce is made up of the employed1 (118,214,000), and the survey week, as paid employees, in their own business the unemployed (8,572,000), as detJrmined by the definition or profession, or on their own farm , are counted as employed. above. Other people who may thiJk they are unemployed

EIR July 5, 1991 Feature 27 25%

FIGURE 1 EIR weekly unemployment 20% rates, U-1 , U-2, compared to official weekly rate 15%

10% The EIR U-l and U-2 unem­ ployment measures were cre­ ated to count the millions of jobless not counted in the of­ ficial rate. U-l adds to the of­ 5% ficial "unemployed" all those who answer government sur­ veys saying they "want a job now." U-2 adds to that the par­ tially unemployed, working in part-time jobs but needing

O% �------'------�------�------r-__� full-time work. 1948 1958 1 968 1978 1988 1991

but did not meet the criterion of having looked for a job in fo rce. The V-Sa rate, which usually is 0. 1 % lower, uses the last four weeks are considered not in labor fo rce . total labor fo rce, rather than civilian labor fo rce in the Subtract the members of the Armed Forces (counted as denominator. The V-Sb rate for the first quarter of 1991 was 1,460,000 in March 1991) from the total labor fo rce, and 6.S%. For the month of April it was 6.6%; in May, it went you have the civilian labor fo rce. This figure was up to 6.9%. 12S,326,000 in March 1991. It is important because it is The V-Sb measure, sometimes referred to as the "offi­ used as a base for the most commonly reported unemploy­ cial" rate , is not, strictly speaking, official. The official ment rate . policy of the Bureau of Labor iStatistics (BLS), which you A somewhat larger number than the labor fo rce is the will be told if you call there and ask, is that the oft-cited V­ total who worked or lookedfor work. For 1989, the last year Sb unemployment rate by itself does not tell you what is for which this figure is available, the total who worked or going on in unemployment. lookedfor work was 133 ,444,000.That compared to a total "We always tell the media this. Sometimes they will labor fo rce of 119,030,000, and a civilian labor fo rce of publish the other information we put out with it. But a lot 117 ,342,000. of people just look at the one figure, as telling the whole story ," this reporter was told recently by a new employee What is the 'unemployment rate'? who answered the phone in the Labor Force Statistics divi­ Now you know what unemployed means in government sion of the BLS. statistics. What is the unemployment rate? Still, the V-Sa and V-Sb measure is published and set in There are actually seven rates released monthly on the boldface type, presumably to stand out from the other six first Friday of the month by the Bureau of Labor Statistics. rates, every month in Table A-8 of the BLS information These are known as measures V-I to V-7. They yield percent­ release called the Employment Situation. It is the one nearly ages which varied for the first quarter of 1991 from 1.8%, always cited by the President and congressmen as well as by measure V-I, t0 9.8%, by measure V-7. But even measure by most press. Few people know of any other. It is hard to V-7, the highest, does not count all the people who are out believe the BLS is doing much to combat what they seem of work, who want a job, and who almost surely consider to say is a misrepresentation of their data. themselves "unemployed." The Bureau ofLabor Statistics' V-Sb unemployment rate Are there better measures of unemployment? is the one you almost always hear cited in newspaper and After careful study of the BLS figures, it became clearto broadcast media reports. Very rarely does anyone beyond a this writer that even the V-7 rate of the BLS (8.2% in 1990)­ labor force economist see anything but the V-Sb rate . It is their highest-seriously underestimates the number of peo­ arrived at by dividing unemployed by total civilian labor ple without jobs whom the governmentknows about. The so-

28 Feature EIR July S, 1991 would have added 5,728,000 joble�s people to the average weekly number of unemployed for the first quarter of 1991. This would have changed the u-5b average unemployment rate for that quarter from 6.6% to j 11.1%. It would have meant an average weekly number of p,877,000 unemployed persons. The progress of the EIR U-l rate of unemployment over recent years can be followed in Figure 1. Calculating the EIR U-2 rate: IThere are also a large number of people each month who ¥eI forced into part-time employment because they cannot pnd a full-time job, or their full-time job has become, at least temporarily, part­ time. These are classified in the BUS statistics as part-time fo r economic reasons .. they are s metimes known as the "partially unemployed." There wen�d 5,911,000 such people each week on average during the first quarter of 1991. y including them in the measure of unemployment, the averageB weekly rate increases to 15.8%, �md counts 19,788,000 i people as unemployed or partially unemployed each week during the first quarter of 1991. T e EIR U-2 rate is also shown in Figure 1. h

No annual rate The second biggest problem wit . the way the government . reports unemployment is the lack of �n annual rate. All seven I unemployment rates produced by th9 governmentcount only the average number of people out of work in a week. What. I about the total number unemployed over the whole year? The Gross National Product is not reported as a weekly average. Neither is the balance of trade. Add Presidents have been known to brag about the number df new jobs created in a year. But rarely if ever do we hear Cl>fthe number of jobless in a year. The government has a figure �or, the number of such people, as measured by their restric�ive unemployment rate, A billboard advertisement for Resorts International casino in and if you dig deep enough, you w�l find it. In 1989 it was Atlantic City. New Jersey . While jobs in the gambling "industry" 17.3 million, producing an annua� unemployment rate of have been integrated into the legitimate economy. government 13.9%. But that is only about half the story. This figure, surveys indiscriminately include illegal activities in their category along with all the other annual su ey data, comes from an of "employed. " expanded CPS survey done each March� which asks about the work experience of each household rhember during the entire called broader picture outlined in the monthly Employment previous year. The results of this sprvey are released each Situation report also drastically understates the problem. Ev­ August in a special BLS press release. They are otherwise I ery one of the rates currently used by the BLS understates hard to come by. The last one (UfDL 90-447 , Aug. 28, the real joblessness situation because the definitionof unem­ 1990), found that the total numbe of persons who were ployed leaves out so many people who tell interviewers they unemployed during 1989. at 17.3 mlWon.r was more than 2.5 want work. times the average monthly unemploybent level of 6.5 million. Calculating the EIR U-l rate: With some change in this Taken as a percentage of the civilian labor fo rce, that definition, millions of people now classified as not in labor gives an annual unemployment rate of 13.9%, in a year in fo rce reappear as really in need of, and wanting work. These which the widely publicized monthlt figuresaveraged 5.3%! numbers have been already compiled by the governmentsur­ To derive an annual unemployrhent rate that counts the veys. For example, by expanding the definition of unem­ whole picture, like the EIR U-l an� U-2 weekly rates, we ployed to include all those who want a job now, a category must resort to estimation. The est'mating procedure is as compiled monthly by the Bureau of Labor Statistics, we follows:

EIR July 5, 1991 Feature 29 would mean the total number of people unemployed during FIGURE 2 the year was 32,379 ,()(}()!That is 26. 1 % of the civilian labor fIR annual unemployment rates U-3, U-4 fo rce for 1989. Counting the part-time or "partially unem­ compared to official annual rate ployed," the figure goes considerably higher (see Figure 2).

60% Few work 50 or more weeks a year That figureof 32 million jobless at some time during the 50% year correlates with another figure directly available from the BLS data. You will probably be surprised to learn that in 1989, 40% out of 132 million people who worked that year, almost 42 million were out of work for three or more weeks during the year. We are not counting paid vacations or sick leave; we 30% mean out of work. Of the 42 million, 20.7 million were out of work for 26 weeks or longer (see Table 1). If we deduct 20% a generous 10 million from th¢42 million, to take account of students who voluntarilyga � up summer jobs, and others who only wanted temporary 'fIork, we arrive again at 32 . 10% million unemployed in 1989. So the answer to the quest�on, "Did unemployment top 32 million in 1990?" is: most probably, yes. By two different 0% 1972 1978 1982 estimating procedures, thebest ,available to us since the gov­ ernment surveys do not ask the questions that would give us the answer, there were 32 million unemployed in 1989. Since Official rate EIR U-3 EIR U-4 • � the weekly unemployment rates went considerably higher in 1990, we can be pretty certainlthat when the yearly figures If the total unemployed in the whole year was 2.5 times are published in August, we wiljIcalculate by the same means the monthly average (specificallyit was 2.64 times), then we used here that the total numbet of people out of work more could estimate that the total who were out of work for longer than a week and wanting a job t any time during the year in than a week but wanted ajob right away, was also 2.64 times 1990 was over 32 million. Whein� we succeed in forcing some larger. That would add 15,122,000 people to the number changes in government reporting procedures, we can know who were unemployed some time during the year. That for sure.

TABLE 1 Number of people working fewer than 50 weeks per year (thousands)

1958 1968 1972 1978 1982 1989

Civilian non-institutional population' 114,849 133,639 146,230 164,027 173,656 187,524 Total who worked or looked for work 78,787 91 ,480 99,730 114,464 120,235 133,444 (As % of non-institutional population) 68.6% 68.5% 68.2% 69.8% 69.2% 71 .2%

Worked 49 weeks or fewer 32,054 33,426 37,461 43,400 46,450 41,965 Full-time 20,345 20,981 22,450 25,670 25,602 23,726 Part-time 10,039 11,195 12,935 15,601 16,890 16,662 Not at all 1,670 1,250 2,076 2,129 3,958 1,577

Worked 26 weeks or fewer 17,483 18,591 21 ,433 23,244 25,651 20,734 Full-time 8,799 9,866 10,756 11,626 11,496 9,480 Part-time 7,014 7,475 8,601 9,489 10,197 9,677 Not at all 1,670 1,250 2,076 2,129 3,958 1,577

• as of month of annual survey in following year Source: BLS, Handbook of Labor Statistics, 1989, Table 49; Current Population Survey annual data for 1989 (USDL 90-447, Aug. 28, 1990).

30 Feature EIR July 5, 1991 TABLE 2 TABLE 3 EIR average weekly rates, U-1 and U-2, EIR annual rates, U-3, U-4, compared to compared to 'official' rate 'official' rate (percent) (percent)

1st qtr. 1958 1963 1968 1972 1978 1982 1_ 1972 1978 1982 1990 1991 EIR U-3 Rate1 34.1 33.4 38.8 25.4 EIR U-1 Rate1 10.8 11.4 15.6 9.9 11.1 EIR U-4 Rate2 42.9 42.9 52.0 35.4 EIR U-2 Rate2 13.6 14.6 21 .0 13.8 15.8 'Official' Rate28 20.9 19.8 14.4 17.7 17.8 24.0 13.9 'Official' Rate2a 5.6 6. 1 9.7 5.5 6.5 1. Annual looked for work in last four weeks, plus ''want ajob now" (est.)(civilian 1. Lookedfor work in last four weeks, plus "want a job now· (civilian labor force). labor force). 2. Looked for work in last four weeks, plus "want a job now,· plus "part-time for 2. Annual looked for work in last four weeks, plus "want a job now" (ast.)plus economicreasons" (civilian labor force). part-time for economic reasons (est.) (civilian laborforce) . 2a. Lookedfor work in last four weeks (civilian labor force) (equivalent to BLS 2a. Official annual unemployed (civilian labor force). rateU -5b).

The EIR U-series unemployment rate measures FIGURE 3 The unspoken implication of the government's "official" Civilian labor force as a percentage of U-5b rate is that if you didn't make a specific job search in population (1958-1 990) the last four weeks, you're not serious about getting a job, 67% andtherefore you shouldn't be counted as unemployed. One 66% might be tempted to call it the Simon Legree definition of unemployment. What if you had no chance and you knew 65% it? If you and several thousand other workers were just laid 64% off from a plant in a one-industry town, what are your 63% chances of finding work? Take a look at New England, or the Midwest "rust belt" to see how that works . If you work 62% as an unskilled farm laborer, and it's off-season, what are 61% your chances of finding work? If you've been looking and 60% getting nowhere, and left your name at a dozen places that 59% said, "Don't call us, we'll call you," what are your chances? The basic assumptions of the EIR U-series are only two: 58% 1958 1968 1978 1988 1) That if someone answers a survey saying they "want a job now," a fairly strong case can be made that that person Source : BLS Employment and Earnings. is unemployed. They probably think so. The EIR U-l weekly rate and the U-3 annual rate (estimated) count these people. precisely where the uncounted are . The BLS unemployment rates do not.· 2) That if someone is forced into part-time unemployment, perhaps as little as The destruction of the family one hour, when they need full-time work, they are at least Even though the unemployment rate measures are high, partiallyunemployed. The EIR U-2 weekly rate and the U-4 they remained below the 1958 recession level for some time annual rate count these people in addition to those above. in the 1980s. For May 1991, the official figure of 6.9% was The BLS unemployment rates do not (see Table 2 and 3). the first time in four and a half years that that level was We have created the EIR U-series unemployment mea­ exceeded. Does that mean that the labor force or theecono­ sures to recognize these people, fully realizing that there my as a whole was better off in the 1980s than in the 1958- may be millions more uncounted. For example, the Census 63 period? It would be foolish to think so. Bureau now estimates about 5 million people uncounted in One big reason the unemployment rate seemed lower the 1980 census. A preponderance of these are thought to than it might have over that period, is that the civilian labor be from the lowest rungs of the economic ladder. We can force (the denominator in the unemployment rate formula) assume that these are the same people who slip through the increased so much. Figure 3 shows the increase of the net of the monthly Current Population Survey. One can civilian labor force as a percentage of the total non-institu­ assume, therefore, that a high rate of unemployment prevails tional population. After remaining fairly constant (even de-

EIR July 5, 1991 Feature 31 ation. These are not all full-time jobs, and, as we saw, not FIGURE 4 all year-round jobs. Of the 1 32 million people who worked Changing composition of work force in 1989, only 80 million worked in full-time, year-round (50 (Men and women as % of total who worked or looked for work) weeks or more) jobs. That's:only 61% of the jobs that are full-time real jobs. And not everyone who worked the part­ 65% Men time and the temporary jobs wanted to. It is suspected that 60% a growing proportion of them are people being "recycled" from better to worse-paying jobs and from full-time to part­ 55% 4 time employment. A last point to recognize about these statistics is that the 50% employed category does not necessarily measure the quality

45% of the job held. You only had to work one hour in the week to be classified as employed by the government survey. Wom� 40% ______(Compare that to the difficulty of qualifying as unemployed even if you don't have a job). 35% �______�______� � One measure of worsening economic and social condi­ 1958 1968 1978 1987 tions is the growth of the underworld. Yet, many criminals are employed. The Current Population Survey does not ask Source: BlS. Handbook of labor Statistics. Table 50. whether a job is legitimate. One can sympathize with the difficulty of a census taker, face-to-face in a person's house­ hold, having to ask such a question. But a mafiahit man, a clining for several years) from 1958 to 1968, you can see it drug dealer, or a prostitute is employed by the survey's took a sharp and steady tum upward. measure if they or someone in their household says they Basically, what you are looking at there is the destruction worked last week. Occasionally someone in this category of the working class family in America. It was part of the tells the census taker what they do. Thus, in the detailed "paradigm shift" that the proponents of the New Age brought industrial classification of � CPS results, various under­ about, beginning about 1963 and accelerating towards 1968 world occupations appear. and into the 1970s. The trend was so severe that in the later 1970s, a govern­ Who's to blame? ment commission eliminated the category of "worker with Intelligent statisticians in the Department of Labor and three or more dependents" from many social statistics. He the Department of Commerce, including many who provided didn't exist anymore. More and more mothers had to go to information for this article, know that no single figure can work (see Figure 4), families broke up, exotic new kinds of characterize a process so complicated as the unemployment living arrangements developed, fewer children were born. level. But, they also know how the figurechosen to character­ But almost everybody, whatever their "lifestyle" or "sexual ize so politically important a process as unemployment is preference," worked more and got paid less. going to be used. Some responsibility for objecting to the New "lifestyles" were only part of the story. Declining dissemination of what they must know is a false reading of real wages were another and probably bigger part. Real unemployment levels should lie with the employees of these spendable earnings have been on a long-term secular slide bureaus themselves. Morally;, anyone who knows this kind since about 1967-68. In March, they fell below the 1959 of cruel misrepresentation is going on is obligated to try to level of $77.62. That is, in 1959 dollars, the average produc­ stop it, whatever their degree lof legal responsibility. tion or non-supervisory worker earned $77 .13, even though But direct responsibility for the policies of these bureaus his or her paycheck read $346.06. To maintain the family lies with the President, who ,selects the cabinet appointees living standard, mom and the kids had to work (child labor who run the departments, and with Congress. If you want to is up, too) . It wasn't a matter of choice. get it changed, that's where to go. So that's one reason that up until the middle of last year , We suggest that concerned citizens take the EIR unem­ more jobs than ever had been created. Don't call it a "boom" ployment rates and show them to the relevant elected offi­ or "recovery," if everybody is working more and getting cials, so that a bit of a stink might be raised over this in paid less. Especially if monetary and trade arrangements, Washington. They might even like to know. One of the rea­ banking practices, and rigged "free" markets in commodi­ sons your congressman may look and sound so stupid to you, ties, set up a situation where the rich nations, and the U.S. is that he believes the official unemployment rates. Perhaps more than others , are stealing from the poor nations to he ought to know better. For 'those who may not care, up to maintain their apparent standard of living. and including the President, we can at least eliminate their There's another side to this so-called boom of job cre- ability to pretend they don't know any better.

32 Feature EIR July 5, 1991 fast track t rule by the big nks

EIR Special Report, May 1991

Auschwitz below the border: Free trade and George 'Hitler' Bush's program for Mexican genocide

Right now, your congressman may be voting to authorize the Bush administration to negotiate a treaty with Mexico that will mean slave labor, the rampant spread of cholera, and throwing hundreds of thousands of workers onto the unemployment lines-<>n both sides of the border-all fo r the purpose of bailing out the Wall Street and City of London banks. Doubt it? Then you haven't looked into NAFTA, the North American Free Trade Agreement that George Bush and his banker buddies are trying to railroad through Congress on a "fast track." In this 75-page Special Report, EIR's inves tigators tell the truth about what the Bush administration and the media have tried to sell . as a once-in-a-lifetime opportunity to get economic growth started across the Americas. The Wall Street crowd-led by none other than , David Rockefeller of Chase Manhattan-are going berserk to ram this policy through. Rockefeller threatened in May, "Without the fa st track, the course of history will be stopped." With this report, EIR's editors aim to stop Rockefeller and his course of history-straight toward a banking dictatorship.

$75 per copy Make check or money order payable to:

�L� News Service P.o. Box 17390 Washington, D.C. 20041-0390 Mastercard and Visa accepted. �TIrnInternational

Yu goslav civilwar process canst illbe stopped

by Konstantin George

The June 25 declarations of independent statehood by the Yugoslavia." Had there been a Western policy of promoting western Yugoslav republics of Slovenia and Croatia, and national and regional economic development in the republics the brutal ongoing intervention on the territories of these of Yugoslavia, the country today would not be at the brink republics by the Serbian-controlled Yugoslav Army, mark of civil war. the formal start of a civil war process, potentially but not On May 15, under the old Yugoslav state presidential inevitably quite bloody. This process did not start on June rotation system, it was the turn ·of a Croat, Stepan Mesic, to 25. The die was cast when, back in mid-May, the national­ become Yugoslavia's President and commander-in-chief of bolshevik Serbian cabal, grouped around Serbia's Commu­ the Armed Forces. The Serbian cabal blocked Mesic from nist President Slobodan Milosevic and backed by a powerful attaining, by merely one vote, the required five votes of the Serbian extremist faction in the armed forces, police, and eight members of the collective State Presidency. Ever since security service, rejected the offer by Slovenia and Croatia then, the State Presidency has ceased to exist. It was replaced to peacefully end the centralized Yugoslav Federation, and by a new Serbian-dominated eJreCutive cabinet, whose three replace it with a loose confederation of sovereign republics. key players are the federal prime minister, Ante Markovic, This plan, also supported by the republics of Bosnia and and two Serbian generals, Defense Minister Kadijevic and Macedonia (i.e., four of Yugoslavia's six republics) repre­ Interior Minister Petar Granin. This forced the question for sented the only viable means to extricate Yugoslavia from Slovenia and Croatia, not to wait and allow negotiations for civil war, partition, and the emergence of a "Greater Serbia" a confederation to take their coorse, but to set June 26 as the from the ruins of the former federation. latest date for proclaiming independent statehood. Note that In a more fundamental causal sense, the die had been cast both republics emphasized that they have left ''federal Yugo­ two years ago when the Belgrade government hired as a so­ slavia," and are more than willing to re-enter, especially in called economics adviser one Jeffrey Sachs of the Harvard the case of Croatia, if Yugoslavia becomes a loose confeder­ mafia. Sachs and the International Monetary Fund, which ation . recommended him, imposed on Yugoslavia the same austeri­ Croatia, which includes Yugoslavia's Adriatic Coast ty conditionalities as were foisted on the Polish nation, with with its numerous beach resorts, has absolutely no interest the same result: depression-level mass unemployment com­ in civil war, and certainly not in the summer. The 1991 bined with hyperinflation; a reversal of living standards first political upheaval has already gravely injured its economy. by years , and then by decades; and a halt to all projects for Gross domestic product fell sQme 20% over the first five national economic development. months of the year, and the number of people either unem­ There is one key difference. Poland is ethnically homoge­ ployed or on half pay stands at 400,000(out of a total popula­ neous. Applying Sachsomania to a multi-national state such tion of 4.5 million). Belgrade timed the crisis to wreck the as Yugoslavia ensures, besides the full gamut of economic last pillar of the Croatian economy, the foreign exchange and social horrors, the guaranteed breakup, in a few years at from the summer tourist invasion. Normally, some 2 million most, of the state along ethnic lines. The crisis is not "Made in come. This year, the Adriatic will be a littoral of ghost towns.

34 International EIR July 5, 1991 The brink of mass bloodshed nothing of the sort happened are to be found outside the The most dangerous "spark" potentials for civil war pro­ borders of Yugoslavia, above all in the capitals of the two voked by Army deployments are: superpowers . In June there have been many pious-sounding • Slovenia: As of this writing (June 27), Army units with calls, by Washington, by European governments, and by large numbers of tanks and armored vehicles have surround­ Moscow, that the Yugoslav Federation must be maintained. ed the Slovenian capital of Lj Ubljana and tank columns have The superpowers and the powers of Europe were strangely seized Lj ubljana Airport, except for a landing strip held by silent, however, back in mid-May, when they could have armed men of the Slovenian Territorial Army. En route to the intervened, using all the economic levers at their disposal, airport, makeshift roadblocks of cars placed by Slovenians to to tum only one vote and force through the election of Mesic. straddle the highway were simply crushed by the tanks. Un­ Their silence ensured that the Yugoslav Federation came to der orders to seize all Slovenian border crossings with Italy an abrupt and final end. and Austria, Army units are advancing toward these points. The final act of sordid conduct in this regard by the Bush Slovenia's President, Milan Kucan has issued a call to Slo­ administration was the failed June 22 "mediation mission" to venes for armedresistance, and appealed to other Yugoslav Belgrade by u.S. Secretary of State James Baker. Baker spent republics to send in troops and assistance. a mere 24 hours in Belgrade, with not even agenda provisions • Croatia: Here the Army deployments betray the Serbi­ for talks with leaders of the various Yugoslav republics. Baker an goal of creating a Greater Serbia including the regions stated that only Yugoslavia's continuation as a centralized fed­ outside of Serbia where Serbs predominate. In Croatia, ex­ eration is acceptable to Washington. This killed any remaining cept for troop concentrations in the Adriatic port garrisons, hopes for last-minute inter-republic talks to reach some form of such as Split and Rijeka, troop movements are mostly non­ agreement on transforming Yugoslavia into a loose confedera­ existent in the two-thirds of Croatia where the Croat majority tion. His "mission," with a U.S. stamp of approv,:al to central­ predominates. The Army has seized the less densely populat­ ized rule, gave the green light for the Serbian-extremist-domi­ edone�third of Croatia, where the Serbs (600 ,000in Croatia) nated federal cabinet cabal to crack down on Slovenia and predominate: Knin in the north, and more importantly, the Croatia in such a way as to ensure partition. Krajina region inland from the Adriatic in the south. These Baker threw the final match into a powder keg atmosphere regions had already been under the de facto control of Army­ reminiscent of pre-civil war Lebanon: Every nationality and assisted Serbian irregular militias, with no Croatian Army religious group in the country has formed heavily armed mili­ presence. Thus, the Army has attained a Serbian Anschluss in tias, each exercising control over its region. Before Baker's Croatia, and sits back, taunting Croatia to be the "attacker." arrival, all sides were hoping for peace, but preparing for war. • Bosnia: In this hapless central republic, sandwiched With his departure, the only open questionbecame: "Could the between'Croatia and Serbia, an Anschluss is occurring paral­ civil warprocess be held to one of limited bloodshed, or, would lel to that in the Serb regions of Croatia. Bordering on Cro­ it snowball into an all-out conflagration?' atian Krajina is the much larger Bosnian region also called The Serb-run Yugoslav Army has armed the Serbs of Krajina, where most of Bosnia's large Serbian minority lives Serbia proper, the Serbian minorities in Serbia's primarily (1,300,000, or some 32% of Bosnia's population). This re­ ethnic Albanian region of Kosovo, and the Serbian minorities gion has been occupied by the Army. A second deployment, in the republics of Bosnia and Croatia. The governments of not mentioned in any press, completes the picture. The Army Croatia and Slovenia have formed their own armies, equip­ has, under orders to secure "the internal borders of Croatia," ping them with massive amounts of arms, imported from occupied and blocked all routes connecting Croatia with Bos­ Austria, Hungary, Italy, Germany, and Ibero-America. Dur­ nia. This cuts off the 800,000 Croats who live in Bosnia, ing June, the Army had been transferring all key war-fighting near the Croatian frontier, from their kinsmen in Croatia assets to Serbian territory. This has included all of Yugosla­ proper. Though nobody is saying so in public, these 800,000 via's large Air Force, and indeed nearly all civilian aircraft Croats are hostages to ensure Croatia's future compliance as well. In commando missions on June 21-22, Army pilots with the new Greater Serbia-dominated map of Yugoslavia. flewto Serbian air fieldsall light aircraft andhelicopters they Already, in early June, the Yugoslav media were rife with could find in Slovenia, including the entire stock of trainer speCUlation that a partition of Bosnia was afoot. Either Bos­ aircraft Slovenia had procured for its nascent "air force ." nia would disappear,or continue to exist as a shrunken buffer The tragedy of the war that, with very few exceptions, zone between Croatia and Serbia, with Serbia taking "its almost no one in Yugoslavia wanted, is now perhaps only an share," and "allowing" the Croat inhabited part to join Croa­ incident or two away. Decisive action by Europe is the only tia, in exchange for Croatia relinquishing Krajina. hope. The leading nations of Europe must offer a package of political and above all economic incentives to bring the Baker fails by design republics into a solution that would create a new Yugoslav In the nearly six weeks between May 15 and June 25 , entity based on policies to the mutual advantage of all the there was ample time for a compromise. The reasons that sovereign republics.

EIR July 5, 1991 International 35 'Surrender' of Medellin drug lord llleans the llloral kidnaping of Cololllbia by Robyn QUijano

When Pablo Escobar, the world's most wanted drug crimi­ in 1987, has just resigned as ambassador, protesting the Gav­ nal, surrendered June 19 to the lUXUry jail he built for himself iria government's surrender to the drug cartel. in his home town, guarded by his own bodyguards, the world Two days before Parejo's resignation, he wrote, "What asked, "Who surrendered to whom?" Escobar, the assassin has been the new strategy employed to 'submit' the drug of thousands, including justice ministers and presidential traffickers to justice? In the first place, a lowering of the candidates, is likely to spend less than three years in his sentence in favor of those who s1;1rrender, forgetting that drug lUXUry jail, and leave with a law degree, ready to runfor the traffickingis, by its extreme seripusness, a truecrime against Colombian Senate, and with his multibillion-dollar empire humanity. In the second place, the state made the commit­ intact. The illegally convened Constituent Assembly, domi­ ment not to hand them over to f@reign judges who seek them nated by the narco-terrorist M-19, which did Escobar's dirty for crimes committed outside Colombia, assuring them thus work in November 1985 when it seized the Justice Palace . . . a high probability that such crimes will go unpunished. and murdered most of the Supreme Court Justices, not only . . . One cannot see either in the government's measures or dissolved the duly elected Congress, but banned extradition, in the decisions of the Constitut';ntAs sembly a concern over the key demand of the drug mob, and changed the laws for the enormous fortune amassed :by the drug traffickers with running for political office to remove all impediments to a the blood of illustrious Colomb�ns and of humble folk. . . . takeover of all "democratic" institutions by drug runners and It would not be far-fetched to think that, even should they be terrorists. convicted, they would leave jail after a short time to enjoy On June 24, El Espectador, Colombia's courageous anti­ their immense, blood-stained fortune, which would permit drug daily which has campaigned against President Gaviria's them to continue corrupting national life ....After all this, deal with Escobar's MedelHn Cartel, ran an article by its co­ can one honestly speak of the surrender ofthe drug traffickers director, Alfonso Cano Isaza, headlined " 'Operation Sur­ to the state? Wouldn't it be more precise to speak of the render' as viewed by Guillermo Cano." Alfonso Cano Isaza submission of the state to the will of the criminals?" quotes a Nov. 2, 1986 commentary by Guillermo Cano, the This hideous capitulation by the Gaviria government to newspaper's martyred director, writtenjust one month before narco-terrorism can be traced directly to the refusal of the he was killed by Escobar's hitmen, for his campaign in favor Bush administration to assist Colombia's war on drugs when of extradition, and for a total war against narco-terrorism. Bogota begged for aid two year� ago, and to Bush's sabotage The elder Cano had expressed his anger at the lack of resolve of Colombia's legal economy by refusing its request for low­ taken by the government fiveyears ago when there was still er U.S. tariffs on its principal legal exports, coffee and flow­ a war on drugs, with all its limitations. His words then were ers. Last year, U.S. assistance to Colombia to combat drugs fatefully prescient. "There remains but one step to be taken in was $85 million, while 90% o{ Colombia's estimated $2-3 this distressing picture: that all the judges, without exception, billion in cocaine exports is consumed in the U.S. abdicate their power to judge; that the legislators change the laws to accommodate the demands of the criminals; that the Bush looked the other way rulers look the other way in the defense of the lives, honor, Not only did the Bush administration set the stage for the and goods of the citizenry. Then the final word will be spo­ Gaviria surrender, but during the entire period of negotiations ken. And that word, on the lips of the drug traffickers, will leading up to the Escobar deal, the Bush administration never be: We Win !" protested the plea-bargaining arrangement with its most There is no doubt that with these steps now taken, the wanted "extraditable." Medellin Cartel believes it won. Former Colombian Justice Former U. S. DrugEnforcement Administration chief Pe­ Minister and Ambassador to Switzerland Enrique Parejo ter Bensinger wrote in the June 24 New York Times that "Mr. Gonzalez, who was himself a victim of narco-terrorism back Escobar should be on death row, not in a posh mountain

36 International EIR July 5, 1991 retreat ....The State Department regrets Colombia's deci­ of an inflationary surge. sion. What baloney (other words come to mind) ....This The narco-terrorist-dominated Constituent Assembly action was shocking; it is not a surprise. For months we will probably not write drug legalization into Colombia's have heard about Mr. Escobar turning himself in for a light new Constitution. However, its dissolution of the National sentence and no extradition. The U.S. should have made it Congress and the redefinition of the qualifications for con­ clear that such a deal was unacceptable ....We looked the gressional candidates have probably paved the way for a new other way, instead of preventing the disaster." Congress more amenable to the idea. Escobar's "surrender" is viewed by experts as a move to protect, rather than dismantle, his so-called Medellin Cartel. Narcotics officers in Colombia and abroad are certain that Documentation Escobar's traffickingnetwork will continue to operate-none of his properties or bank accounts have been touched, and none of his laboratories, smuggling fleets, etc., have been surrendered. Escobaralso has freedomto meet or speak with The fo llowing are excerpts from a statement written byfo r­ whomever he chooses-his mother visits him at any time, mer Colombian Justice Minister andjust-resigned Ambassa­ thehome town mayor reportedly watches television with him dor to Switzerland Enrique Parejo Gonzalez, who was him­ in his luxurious "cell," and no one can even enter the "prison" selfa victim of narco-terrorism back in 1987 fo r his strong who isn't firstapproved by his own bodyguards. stance in fa vor of the extradition of drug traffickers. His statement was submitted by the brother of murdered presi­ Legalization on the agenda dential candidate Luis Carlos GaLan to the National Constit­ Before his surrender, Escobar gave an interview to Co­ uent Assembly on June 19, 1991, on the eve of the Assembly' s lombia's RCN radio suggesting that drug trafficking-the vote to constitutionally ban extradition. only offense he is likely to confess to---could well be legal­ ized before long. And prominent criminal lawyer Jorge Cor­ ...We are dealing with an international crime which tran­ dova Poveda, interviewed by Hoy por Hoy magazine on scends national borders and which in some states, among Escobar's possible sentence, cautioned that prejudging the them our own, poses a serious threat to democracy. To com­ case was impossible. After all, he said, "We don't know if bat this crime, international mechanisms are required. It is the drug trade will be legalized in two or three years, do thus inadvisable to deprive the ordinary legislator of the op­ we? The judicial process is so uncertain-in the case of portunity to establish, when public circumstances demand it, Escobar-we can't even be sure he'll be convicted." that instrument of society's defense against one of the worst Indeed, proposals for legalization are inundating Colom­ forms of organized crime that has confrontedhumanity in all bia. The National Constituent Assembly is debating a propos­ its history. al by former minister Jaime Castro for legalization of the Colombian society and its ruling class have the duty to production, sale, and consumption of drugs. Hoy por Hoy declare themselves against the absurd attempts of the drug devoted several features to the subject recently. A prestigious traffickersto impose their criminal will on the country. Under thinktank, the Institute for Liberal Studies, founded by De­ the worst dictatorships, citizens live in fear of the dictator's velopment Minister and drug legalization lobbyist Ernesto ability to repress whomever acts or expresses opinions SamperPizano , has just issued a new proposal for legalizing against his omnipotent and arbitrary power. In our country, cocaine. And widely read journalist Jorge Child has just which prides itself on being a democracy, the drug trade written that "as long as the new culture of drug legalization seeks to exercise a still more ominous dictatorship against is not imposed worldwide-and Colombia should begin by the state itself, and against the citizenry, to prevent-by promoting it, as delegate Jaime Castro has proposed-we means of crime and terror-that Colombians dare act or ex­ will remain enveloped in the satanic repression of the Holy press their opinions or feelings against such criminal activity. War." There is an imposed silence, resulting from fear of death Behind this drumbeatfor legalization is the commitment which, implacably, the drug traffickers order against anyone on the part of President Gaviria's government to George who opposes, by word or by pen, their criminal designs.

Bush's "freetrade ethics," which de facto embrace the legal­ Fortunately, the country still has men of the moral caliber ization of drugs under the concept of the "open economy." of a Guillermo Cano, of a Luis Carlos Galan, of a Rodrigo Not accidentally, just three days after Escobar's surrender, Lara Bonilla, of a Carlos Mauro Hoyos, of so manyofficials the Gaviria government decided to shut down its infamous and agents of our Armed Forces and of the citizenry in gener­ "sinister window" at the central bank, which laundered drug al, who have died in their fight against crime and in defense dollars, and in its place opened up the entire banking system of public morality. Men who prefer, like them, to face any to a" freeexchange" of dollars for pesos, no questions asked. risk so as not to suffer the enslavement of their consciences. Drug dollars have begun to floodthe country , sparking fears The country cannot permit itselfto be morally kidnaped.

EIR July 5, 1991 International 37 Ve nezuelanArm y chief warnS 'corrupt democracy' is breeding civilwar

by Gretchen Small

The extreme fragility of the current political map of Ibero­ to accept Garcia's resignation. America was exposed on June 20 in an unexpected comer: Perez was forced, however, to firea close friendand ally, Venezuela. In the ceremony transferring command to his Gen. Herminio Fuenmayor, as head of the Department of successor, outgoing Army commander Gen. Carlos Julio Pe­ Military Intelligence, after police caught him doing favors naloza issued a dramatic call to the "decent majority" in the for a drug-traffickingring . country to join the armed forces in a crusade against rampant New revelations of drug trafficking involving the cream corruption, before others, less concerned with liberty, act to of Venezuelan "society" were reported in June. The penetra­ cleanse the country's political institutions through "blood tion of Venezuelan institutions by drugs is shown in the case and fire." of Adolfo Martinez Torres, a former governor of Caracas Corruption, from drug trafficking to extortion, has be­ and interior minister, who has been accused by the U.S. come so widespread in Venezuela that national security is Drug Enforcement Administration (DEA) and Venezuelan threatened, he charged. If things continue as they are , there officials of heading a band of drug-runnersmade up of young will be civil war "between the corrupt minority whose moral members of upper class families (Brillembourg, Arape, Bal­ degradation is visible but which has enormous resources, and ladares Branger, Morett, and Pab6n) , some of whom arenow the decent majority which suffers daily." in jail in the U.S., Canada, and Switzerland. The ring set What goes under the name of "democracy" these days in up a car-smuggling operation as a cover for their cocaine Venezuela, responded with fury . The general's speech was trafficking. published only in one dissident newspaper, EI Nuevo Pais, Adolfo's brother, Nelson Ramirez Torres, is the lawyer and the press conference he gave at the end of the ceremony for a Cuban-Venezuelan bankel'!, Orlando Castro, allied with was blacked out entirely. The defense minister, speaking for Perez's circles, who attempted to take over the Banco de President Carlos Andres Perez , announced that the govern­ Venezuela, one of the nation's biggest banks, last year. Nel­ ment was studying what "sanctions" could be applied against son says his brother is a "victim of a plot" runby the owners the general for speaking out. Perez railed that it was an "inso­ of the Banco de Venezuela, but: his credibility was tarnished lent aberration to say that democracy is corrupt." with the news that the DEA is investigating the $400,000 he Penaloza evidently did not speak only for himself, and received in "honoraria" for defending the wife of a now­ the government was forced to back off, at least for now, from jailed drug trafficker. punishing its most outspoken critic to date. As June closed, the news broke that the largest stock brokerage house in Venezuela,! Incambios Valores, headed Rot permeating the country by banker Angel Buenano, served as the launderers for the No one doubted that Penaloza's description of corruption Ramirez Torres ring. A worried president of the Caracas referenced the President, among others, whose advisers and stock market, Juan Domingo Cordero, acknowledged that personal staff have spent the past two months denying mount­ Buenano has played a leading: role in Venezuela's capital ing evidence that they are involved in arms profiteering and markets, telling EI Nacional June 25, "The truth is that the drug running. The head of presidential security, Orlando Venezuelan financial system lacks the necessarycontrols to Garcia, a Cuban-Venezuelan who has run Perez's personal avoid or control money laundering .. ..Drug traf fickinghas security for more than three decades, tendered his resignation penetrated the financial system and the stock market cannot in mid-June, when it became no longer possible for him to be exempt fromth is." deny charges by Penaloza and others that Garcia and his former mistress, Gardenia Martinez, along with a number of 'Democracy' as a weapon of war retired military officers, were involved in bilking the state Such truths as presented by Penaloza are seldom heard through fraudulent arms contracts . Press accounts said that about Venezuela's "democracy," hailed as one of Washing­ the President's own mistress, Cecilia Matos, was involved. ton's greatest political success stories. Perez has traveled the Despite proof of graft and influence-peddling, Perez has yet world as a spokesman for Geotge Bush's new world order,

38 International EIR July 5, 1991 the virtues of "limited sovereignty," and the need to replace Ibero-America. But here , resistance is being waged in the such "archaic" institutions as the national military by supra­ name of a war on phony IMF "democracy." national forces. General Penaloza's call to arms , however, is only the War in the Amazon? most explicit statement voiced so far, of a rebellion brewing Penaloza's warningthat bloody civil war will result if the in the military throughout the Americas against the form of free-for-all looting continues unchecked, is true for the entire "democracy" championed by Washington which has region. The breakdown of institutions has now reached the served-deliberately-to bring about the disintegration of point where the question is no longer whether the current nation-states. From Mexico on down, military men are ever form of governments can continue to rule-it can't, for more loudly agreeing with Penaloza, that "leadership of the long-but whether national movements such as that called state is too important to leave it only to the politicians." for by Penaloza, uniting civilian and military patriots, can The rebellion is aimed squarely at the imperial policies seize leadership over the social upheavals now brewing, be­ coming out of Washington. The day Penaloza spoke, U.S. fore bestial war of each-against-all engulfs the whole region. Assistant Secretary of State Bernard Aronson was busy tell­ The most intense battle for sovereignty against the IMF, ing the House Subcommittee on Western HemisphereAffairs is taking place in Brazil, and has international financiers that "the people of Latin America and the Caribbean, long worried. "Brazil is the swing country" in determining wheth­ freed from colonial domination, have embraced democracy er the IMF reforms and "free trade" can sweep South as the only legitimate form of government." At the annual America, the London Guardian said June 25. meeting of the Organization of American States, held in The problem the IMF has in Brazil, is military resistance Santiago, Chile June 3-8, U.S. diplomats had teamed up with to President Fernando Collor's efforts to put through new Perez's diplomats, to ram through a resolution committing world order policies, which has galvanized civilian support governments in the region to consider collective action for the nationalist program (see EIR , June 28). That resis­ against any country in which "democracy" is overturned. tance extends from the auctioning off of Brazil's strategic Yet in the past decade, "democracy" has come to mean industries to foreign interests, to efforts to tum the Amazon freedom for disease, drug-traffickers, narco-terrorists, and heartland of Brazil into a foreign-controlled enclave. foreign looters-and no one else. The system of representa­ A Brazilian Parlimentary Commission of Inquiry (CPI) tive governmentconceived of by the U. S. Founding Fathers , was established in June to investigate such plans to "interna­ premised on national sovereignty and answerable only to tionalize" the Amazon. Correio Braziliense reported June 18 natural law , is diametrically opposed to the concept of sover­ that the threat of the "limited sovereignty" doctrine being eigntyof the people put forward as "democracy" by the An­ raised internationally, was top on the agenda of discussions glo-American crowd now running policy in Washington. during a tour by a group of 15 congressmen of militaryout­ Sovereignty "of the people," raised in opposition to national posts in the Amazon region in June. The commander of sovereignty, is nothing but that most dictatorial of concepts, the Amazon region, Gen. Antenor de Santa Cruz Abreu, therule of men, not law. As has occurred throughout human reminded the congressmen that the Amazon had been the history, that translates into simply the rule of the most pow­ object of foreign greed since the days of the 17th-century erful. pirates. Effortsto set up multinational "Indian" parks today, Washington, impressed with its imperial power, has intervention by foreign missionaries, European Community twisted "democracy" into the means to destroy any national intervention against Brazil's gigantic Carajas mining project, institution which stands in the way of the new world order. the U.S. Treasury's threats to cut off assistance if Brazil That has made the military their number one enemy in Ibero­ attempts to complete the Brazilian-Peruvian highway America because, as Penaloza said, "What distinguishes the through the Amazon, are no different, the general stated. military institution is its capacity to wage war in defense of "Economic interests" are behind these attacks. the Fatherland's vital interests ." After one military-civilian meeting, Congressman Mauri­ Under the new order, the only "vital interest" allowed to cio Campos, president of the House Committee on National governments, is that of meeting foreign debt payments . This Security, repudiated "the actions of international groups that definitionof democracy was made explicit by none other than have been investing in ecology to cover up for their interests the chief of the International Monetary Fund (IMF) , Michel in the niobium, gold, uranium, and cassiterite reserves in the Camdessus, who told an International Labor Organization Amazon." Sen. Irapuan Costa, Jr. , president of the Senate conference on June II, "It is the experience of the Fund, that Commission on Foreign Relations and National Security, de­ progressin democratization makes the launching of econom­ fended the role of the Brazilian Army in the Amazon. The ic reforms easier. " presenceof the military is felt "not as protectorsof the borders," Thus, the worldwide anti-Bolshevik resistance move­ but "with more or equal intensity in thefield of education and ment, which arose in China and Eastern Europe in 1989 health.. ..The Army dedicates 90% of its activities to service under the banner of democracy, is now raising its flag in civilians, in all the Amazon region," he said.

EIR July 5, 1991 International 39 of holding back tyranny's dark waters. Documentation This analysis leads me to raise some questions: Is it justifiableto sacrifice freedomto defeat corruption? Aren't we faced with a false dilemma which forces us to choose between a corrupt democracy or an honest dicta­ torship? Are there no other options? Finding the answer to these questions constitutes the highest national priority ....The Holy War against corrup­ 'Venezuela needs tion has only just begun and will be a long one. Peace is not yet on the horizon. . . . What, then, must the role of the a moral renaissance' military be? Blind obedience? The fo llowing are excerpts of the sp eech delivered on July We know only too well that our duty is to be obedient 20 in Caracas by Gen. Carlos Julio Penaloza, outgoing com­ and not deliberate [policy] , as the Constitution and Venezue­ mander of the Army. lan law dictate; but this doesn't imply that we obey immoral, illegal, or illegitimate laws, nor that we remain silent when . . . A call to the honest and decent majority of our compatri­ the Nation is in danger ....To paraphrase Clemenceau, we ots to enroll in the crusade against the plague of corruption can say that just as "war is too important to leave it only to which threatens to slowly, yet relentlessly, destroy our moral the generals," leadership of the state is too importantto leave bases and our freedom. . . . it only to the politicians. Today , freedom's primary enemy is corruption, that What distinguishes the military institution is its capacity monster engendered by the satanic mating of injustice with to wage war in defense of the Nation's vital interests. Today immorality; that hydra of innumerable heads, such as drug we are waging war against corruption, in defense of our trafficking, extortion, personal insecurity, etc., spreads the moral values. For that reason, When we are under attack from deadly virus of moral AIDS irreparably produced by the corruption's followers, we in �e military , as always, must be Fatherland's system of ethical immunity. In only a short on the front lines of combat, beicause the Republicdemands it time, that plague has become Public Enemy number one, of us, and because the ethical ¢ost of not acting would be too constituting the gravest threat looming over our nation. This great for an institution as important. as the National Armed offspring is a truly subversive element which, through the Forces (FAN). destruction of our moral values, attempts to destabilize our For some, it would appear:that this is not a military war, democratic system and rob us of our freedom. This disease because instead of conventional weapons, we must defend has been gaining such strength and aggressive capability, ourselves with moral weapons. But we, the military, cannot that I do not hesitate to state that in Venezuela, a civil war is avoid this battle, in which we must fightas part of an obligato­ brewing between the corrupt minority whose moral degrada-: ry moral service .. ..The military is a legitimate and impor­ tion is visible but which has enormous resources, and the tant part of society, and thus an institution which has some­ decent majority which daily suffers the corrosive impact of thing to say and must be heard, without this constituting a the cunning blows delivered by this degenerate beast. . . . threat to civil society and democratic institutions .... Corruption reigns among us and threatens us all, to the We all know that in cases liike this, to take a moral stand, point that it threatens the very security of the state .. .. following the voice of one's cQnscience, can have bad conse­ quences, but the consequences of not taking that stand can Democracy's dilemma be even worse .. .. This now unavoidable truth has provoked opposition We have to prevent freed{)m from becoming one of the from among a growing group of military men and civilians casualties. At this critical moment for our Nation, therefore, who are convinced that today's democracy is so rotted by it is indispensable that we the military become soldiers of corruption that the only way to correct that situation is by morality even at the risk of being considered in a state of force, which, through blood and fire, would purge the corrupt [policy] deliberation. and save the nation. This group feels that the only way to We pray to God that our leaders will rebuild and awaken restore the nation's honor is through the blood of those who this sleeping democracy which is, dangerously, abhorred by have stained it, and that to attain that end, it is necessary many . If they ignore the advice to correct it, and refuse to to do away with democracy and establish an authoritarian take measures to purify it in the short term, then Democracy regime. If this were to occur, we would again fall victim to will be the loser. If a moral renaissance isn't begun soon in despotism and would lose our freedom, the only dam capable Venezuela, anything can happen.

40 International EIR July 5, 1991 broglio as a major obstacle to the full integration and strengthening of the region as a whole: • In early June, Japanese Foreign Minister TaroNakaya­ Regional powers win rnavis ited Hanoi, the firstvisit of a Japanese foreign minister to the country. Aside from promising to train Vietnamese Cambodian cease-fire economists and provide technical assistance, Nakayama also reportedly said Japan would provide Vietnam with $1 billion by Linda de Hoyos in investment, upon the completion of the Cambodia settle­ ment. Nakayama also met with Hun Sen while in Vietnam. Japan has been seeking to find a middle ground within the Meeting in the Thai resort town of Pattaya, the newly formed U.N. plan to which Phnom Penh would agree. Supreme National Council of Cambodia, chaired by Prince • At the same time, Chea Sim, Politburo member of the NorodomSihanouk, has reached the firststages of agreement Phnom Penh government party , visited France for meetings on measures to end the ll-year-Iong conflict in Cambodia. with officials there . France has been working with Indonesia The council is comprisedof the Vietnamese-backed govern­ to mediate a settlement on Cambodia. ment in Phnom Penh, and the three factions of the resistance • Thailand has also played a crucial role in trying to . coalition to that government, led by Sihanouk, the U.S.­ bring the warring Cambodian factions to the negotiating ta­ backed Son Sann, and the Chinese-backed Khmer Rouge . ble. In the last year, Thailand has acted as informal mediator On June 24, the council announced that it had reached between Phnom Penh and the resistance coalition, working unanimous agreement for an "unlimited cease-fire" and to in tandem with Tokyo. On May 30, Thai Prime Minister stop receiving foreignmil itary assistance. Further, Sihanouk Anand Panyarachun, speaking during a visit to Malaysia, told the press, the council had put to rest the contentious said that he saw no problem with the Indochina countries­ issue of leadership, by unanimously endorsing the prince as Laos, Cambodia, and Vietnam-joining the Association of "convenor and president" of its future meetings and as head South East Asian Nations (ASEAN). of the council delegation to the U.N. General Assembly, One week before the Cambodian Council met in Pattaya, according to the Bangkok Nation. The meeting also adopted the Thai governmenthosted a visit by Yang Shangkun, Presi­ a common flag and national anthem. dent of the People's Republic of China. Yang was met at Thecease-fire is being imposed after the Khmer Rouge the airport by Thai King Bhumipol and feted accordingly. has been driven out of the crucial town of Pailin near the According to the Thai Rat daily, a settlement of Cambodia border with Thailand, and Phnom Penh had stopped their was a key point on the agenda. driveto take the provincial capital of Battambang. Also discussed were plans for the development of the The tortuous road toward settlement of the conflict has upper reaches of the Mekong River, situated in China, as part centered on the plan put forward last year by the Permanent ofthe overall Mekong River Project. The project, expectedto Five of theU.N. Security Council. That plan called for a cease­ be underwritten by Japan, is awaiting the Cambodian settle­ fire, the dissolution of the Phnom Penh government, and a ment to move forward . Seven dams would be built along the replacementadministration by the United Nations itself to over­ Mekong, resulting in the vast expansion of irrigation and see national elections. Phnom Penh and its backer Hanoi have, hydroelectric power for Laos, Cambodia, Thailand, and Me­ not surprisingly, opposedthe plan,which is, also not surprising­ kong Delta area of Vietnam. In May, the P.R.C. indicated ly, enthusiastically endorsed by the Khmer Rouge. for the first time that it was interested in joining the Mekong Although it has agreed to cease-fire-the first condition Interim Committee, composed of the countries through for any settlement-the council has not yet agreed to the which the Mekong River runs. extent to which it will adhere to the U.N. "Perm Five" plan. According to the Bangkok Nation, the Chinese President Prince Sihanouk said that Hun Sen, prime minister of the had agreed to "try to persuade the communist guerrillas Phnom Penh government, did not agree with the plan at [Khmer Rouge] to be more flexible." all, although Phnom Penh representatives said Hun Sen had • On June 22, Prime Minister Anand met with all the never rejected the plan. Sihanouk quoted Hun Sen as saying, Cambodian factions in Pattaya. "We are a sovereign country , we have to solve our problems There is still a long way to go until a sovereign govern­ as sovereign people"-a statement Sihanouk himself might ment is established in Phnom Penh which is able to rulethe agree with. entire country. The Khmer Rouge wants 700U.N. advisers to rush to the scene to oversee the ceasefire, while Hun Sen Japanese-Thai etTorts has said that the cease-fire should be directed by a Cambodian The council's meeting, in the balmy atmosphere of Pat­ committee. However, the agreement to a ceasefire itself is a taya, followed a round of diplomatic initiatives by neigh­ major step-and the promise of a regional effort to rebuild boring andfriendly governments that see the Cambodia im- Cambodia has been a major factor in its attainment.

EIR July 5, 1991 International 41 world: the Middle East, Africa, and the Soviet Union, Euro­ pean analysts report. In all these areas , the Club is trying to impose its own agenda for dealing with what they call the problematiques that must be fa ed, like "food security," "en­ vironmental constraints," "population� growth," "potential mass population movements,"- and the "North-South issue." The Club ofRome 's national group in the Soviet Union­ Club of Rome in new one of the Club's most active chapters, it is reported-just held a secret high-level meeting involving academics and malthusian offensive students in Novosibirsk, Siberia, and including Club co­ founder Alexander King, a British racist who has spent much by Our SpecialCor respondent of his career seeking ways to "reduce the threat frompopula­ tion growth among non-white' populations." Soviet Club of Rome members include Yevgeny M. Primakov, director of The Club of Rome , the conceptual command center of the the Institute of World Econonly and International Relations, neo-malthusian movement since the release of its notorious and Dzherman Gvishiani of the Committee for Systems Anal­ Limits to Growth report two decades ago, is launching a new ysis of the Soviet Academy of :Sciences. organizing offensive this autumn. According to information Although the Soviet Club of Rome is not expressing pub­ obtained by EIR , the Club plans to release two major reports, licly any views on population, migration, or North-South which will receive wide pUblicity in the international media, problems, these are matters of great concern, especiallywith­ one assessing the results of its 20 years' proliferation of in the Soviet Union itself, sources close to the Club report. malthusianism, and the second spelling out its agenda for the According to these sources, the Soviets claim to have their current decade and for the next millennium. own internal "North-South" crisis, between the Russian and The first, entitled The First Global Revolution, will be western republics, and the southern Islamic republics. The published simultaneously in September as a book in the U nit­ Russian and Ukrainian birth rates are very low comparedto ed States, United Kingdom, France, and other nations, in those of the Islamic republics. :Yetat the same time, especial­ Germany as a special edition of the weekly Der Sp iegel. and ly in the midst of the current economic breakdown in the in Japan by the newspaper Asahi Shimbun. Then, for the Soviet Union, none of the Islamic republics wantto leave the occasion of their next international conference, to be held in union. Hence, the "internaldemographic threat" will grow . Montevideo, Uruguay in November of this year, the Club will produce an updated version of the 1971 Limits to A racist alliance Growth. the blueprint for the genocidalist program to end The same sources also claim there is a great external all economic growth and decimate the world's population. Soviet fear of the Chinese "population problem," despite the Dennis Meadows, author of the original Limits to Growth. is warming ties between the So�iet Union and China. Suppos­ now working on this version. This will lead to the publication edly, in Siberia and elsewhe� in the U.S.S.R., the Soviets of a report with the title, Limits to Growth fo r the 21st fear hordes of Chinese crossing the border into Siberia, a Century. region many Chinese settlers moved into during the last cen­ Club leaders privately deny any policymaking role, but tury, and an areabarely populated by Russians. in fact their self-appointed role goes beyond policymaking Whether this faithfully represents the private view of in the narrow sense of this term. The Club of Rome has leading Soviet Russian elites or not, the very circulation of always attempted to shiftthe "paradigms" of thinking of both such reports flowing out of the Novosibirsk meeting, indi­ policy elites and populations. What they are now attempting, cates that King and his cohorts are trying to recruit the Soviet is to exploit to the full, through propaganda and other means, Russian "caucasians" into a common alliance against the the increasing number and severity of disasters-man-made world's non-white peoples. : and natural-taking their toll in human lives, to induce peo­ The Middle East and Africa and the Islamic world are ple to feel more despairing and pessimistic in the face of such also a matter of considerable preoccupation for the Club catastrophes, and to implant a "Kantian duty" which will of Rome. The convergence of disasters in these regions, render them incapable of finding creative solutions to the including war and famine, is being cynically exploited to problems of the future . In that state of mind, human beings foster the Club's aims. One policy being discussed and ad­ can be induced to "dutifully" acc�pt mass death. vanced, is to use the "food weapon" against the Arab states, in response to use of the "oil weapon." As one Club member Focus on crisis regions noted privately, the Middle East now requires 60million tons The Club of Rome has recently been focusing its malig­ of imported grain a year to keep alive, and this could provide nant attention on some of the most troubled regions of the a powerful weapon in the hands of food exporters .

42 International EIR July 5, 1991 WWF's own journalists tried to excuse his behavior: "The Prince doesn't like journalists."

Why Sweden? Prince Philip put on The UNEP chose to hold World Environmental Day in Stockholm so that Sweden could tum over to Brazil the re­ defensive by EIR sponsibility of hosting the next U.N. environmental confer­ ence, set for Rio de Janeiro in 1992. At first, it was suggested by Ulf Sandmark that Stockholm again play host, but, because of the debate on the rain forests, Brazil was chosen. But Brazil will not be told that, on the pretext of concern Under the banner of protecting the environment and wildlife, for the rain forests, the country's natural resources will be the World Wide Fund for Nature (WWF) and the United stolen, and its women sterilized. Yet those are the facts-as Nations Environmental Program (UNEP) held meetings in could be seen when Swedish Prime Minister Ingvar Carlsson Stockholm in the beginning of June. What they plainly did supported giving George Bush's "new world order" ultimate not wish to protect was the world's human population . power over the fate of the rain forests. Carlsson said, "In­ The WWF's international president, Prince Philip of En­ deed, some have compared the present period with the great gland, spoke on the group's intentions for the nations border­ creative period of new, multilateral cooperationthat followed ing the Baltic Sea. At a press conference with WWF officials the end of the Second World War. We now need a similar from Sweden, Estonia, Latvia, and Poland, he complained burst of creativity and commitment in using the existing mul­ about the forces working against the WWF. "The ecological tilateral framework to build a wider system of global gover­ problems in the area are the result solely of human activity nance, where common responsibility, economic develop­ concerning industry, agriculture, forestry, and transporta­ ment, and protection of the environment is the unifying tion. There are many large economic interests involved and thought. I have no doubt that towards the end of the 1990s it would be unrealistic to believe that we can achieve long­ we will say 'before and after Rio' in the same way that many range environmental protection goals and conservation of the people now say 'before and after Stockholm.' " biodiversity without colliding with human economic inter­ Carlsson also referred to a report prepared by the Swedish ests," said the Prince. He set "ecological interests" against government for Environment Day; the report said that "in thoseof the human race. low-income countries, millions of peopleare suffering from PrincePhilip was consciously attacking the livelihood of the effects of high population growth, overpopUlation, and the world's population. Not surprising; he is part of an elite poverty," and that these problems must be overcome to en­ which steers the ideas that make up the framework for the sure the maintenance of a healthy environment and a good worst genocide in history. At the press conference, Philip's "quality of life" for the lucky few allowed to be born, or to complicity was revealed when EIR reporter Robert Zelizi live out their lives. asked if he and the WWF do not support epidemics and starvation, as a solution to so-called overpopulation in the Bloody-minded Anders Wijkman Third World. Of all those participating in Environment Day, the most Philip grew noticeably nervous at the question, and deliv­ ferocious was the president of the Swedish Society for the ered a lO-minute defense of the WWF. He denied he was Conservation of Nature, Anders Wijkman. He announced: proposing such horrors, insisting he wanted only to warn "In a recent study the question was posed: How many people how serious overpopulation has become. Said the Prince: could live on Earth at the living standard of the average "The world population has actually tripled in my own life­ Swede? The result was an estimated half a billion people. time. People must freely decide which necessary measures Already, today, there are 5.4 billion people on Earth. When they themselves must taketo solve this horrible problem." my children are grown, there may be 8-9 billion." Others at the press conference did not exactly follow the Wijkman is promoting staggering levels ofgenocide . His interaction between the .Prince and EIR , and did not under­ proposal to halve the energy consumption in industrial coun­ stand when Philip childishly tried to tum the question around tries by the year 2025 can result only in destruction of living so as to make it appear that it was EIR's policy to propose standards. At a demonstration after he spoke, he was con­ genocide. "Splendid, now it's on the record that your maga­ fronted with a sign which read: "Anders Wijkman is propos­ zine is proposing this," Philip said, looking triumphantly ing genocide 100 times worse than Hitler. " around the room. He found that no one else was laughing "I could sue you for that," he threatened. However, when withhim . urged to do so, he fell silent. When he was offered an oppor­ After Philip indulged in a further exchange with EIR , the tunity to buy a rope to hang himself (if he thinks the world press conference was closed down, and Philip fled. One of so "overpopulated"), he ran away.

EIR July 5, 1991 International 43 and British intelligence. Without such support, there would be no civil war-and resulting famine. Nonetheless, the U.S. Congress claims to be concerned about the people of the region. To this supposed end, the bill provides for giving aid to the "people," bypassing the Horn of Mrica target governments. It calls for providing "assistance to indigenous non-governmental institutions working government-con­ fo r re-colonization trolled or opposition-controlled territories . . . to advance development programs, or to carry out relief." by Joseph Brewda What this formulation and others throughout the bill means is this: The United States will continue to provideaid to "the people" in such forms as food, seed, agricultural On June 20, the U.S. Congress voted 410-0 in favor of H.R. equipment, and the like-without the consent or even the 1454, the so-called "Hom ofAfrica" Act, which sets a crucial knowledge of the governments concerned. To this end, "hu­ precedent in reintroducing outright colonialism in Africa. manitarian" bases will be established in neighboring Kenya, What George Bush's "new world order" means for Africa Uganda, and elsewhere, and food-and presumably weap­ and the rest of the Third World is the imposition of United ons-transported across the border to the people, especially Nations trusteeships, protectorates, and eventually even for­ those people, such as John Oarang, in revolt against their mal colonies-and starvation, war, and disease, for those governments. who resist. The bill, sponsored by Sen. Byron Dorgan (D-N.D.) and Crocodile tears 48 co-sponsors, claims to "assure the people of the Hom of As far back as Dec. 14, international law expert Bruce Africa"-Sudan, Ethiopia, and Somalia-"the right to food Fein, writing in the Washingum Times, called for using the and other basic necessities and to promote peace and develop­ Persian Gulf crisis to form a United Nations army which ment of the region throughgrassroots participation." Reality would recolonize Africa and the rest of the former colonial is otherwise. sector. The mission of the force, Fein advocated, would be The bill attacks the three governments for supposed to "punish violations of international law ." "gross human rights violations, political repression, and en­ "Who would shed even crocodile tears," Fein asked, "if vironmental destruction," and the consequent failure of the [U.N.1 Security Council forces were deployed to quell the International Monetary Fund (IMF) in "achieving economic domestic conflagrations in Ethiopia and Sudan and to rule reform objectives." Under this pretext, the bill cuts off every them according to trusteeship agreements similar to those penny of military, economic, or other aid to the governments concluded under the U.N. international trustee system?" of the three states. For those in the British and U. S. governmentswho think The Ethiopian and Somalian governmentswere just over­ like Mr. Fein, starvation is a very effective way to create the thrown by revolts; Sudan continues in a civil war. Nonethe­ conditions favorable to reestablishing colonies in Africa. less, the bill condemns the governments of the three states Thirty million Africans-a population equivalent to that as responsible for starvation in their lands. Ironically, the bill of California-are now in danger of starvation, according to had been drafted prior to the Ethiopian revolution, but was the U.N. Food and Agriculture Organization. "Unless there left unchanged, despite the installation of the new gov­ is a massive acceleration of the flow of food aid to the affected ernment. populations," FAO Director General Edouard Saouma told "Countries in the Hom of Africa are among the poorest the Financial Times of London June 19. "We are going to in the world," the bill reads, "yet military expenditures by see widespread deaths from starvation between now and the regimes in the region consumed as much as half of all govern­ next harvest at the end of the year." The FAO report says ment revenues, thereby diverting scarce resources from de­ fightingin Africa has created 3.5 million refugees, and anoth­ velopment and basic human needs." This is particularly strik­ er 5 million people are displaced within their own nations. ing since the wars in the region, including civil war, which The FAO estimates that 5.7 million tons of grain are necessitate such military expenditures, are themselves ma­ needed, though only 3.4 million tons have been pledged, and nipulated largely by the United States, British, and Soviet only half of that delivered. Under the cover of pretending to governments. address this grave problem, several Western governments For example, John Garang's Sudanese People's Libera­ and aid agencies, such as Oxfam, are proposing that a "U. N . tion Army has been in revolt against the central government czar for African aid" be appointed. According to the Finan­ in Khartoumfor years, among the reasons the Sudanese state cial Times, the United Nations czar would have the authority requires large military expenditures. Garang is funded and to call up military forces, supposedly to overcome logistical armed by the U.S. CIA and the Pentagon, the Israeli Mossad, problems with food supplies.

44 International EIR July 5, 1991 Reportfro m Bonn by Rainer Apel

Berlin is again the capital not remain the East of the West, but The German Parliament's vote in fa vor of restoring Berlin as the rather become the new center of Eu­ rope. Berlin is well situated there-in capital is a signal to the East. respect to both axes: North-South and West-East. " His remark that "not even France would have had the idea to re­ main in idyllic Vichy" after the libera­ A marginof 18 votes secured a ma­ many a 10-20 year magnet for infra­ tion of Paris in 1944, embarrassedthe jority in the Bundestag (the Parlia­ structure and industrial investments in pro-Bonn lobby, which included lead­ ment) afteran I I-hour debate June 20, the range of several tens of billions of ing members of his own Social Demo­ making Berlin once again the capital deutschemarks. It makes a big differ­ cratic Party, including the two party and seat of government. Of 662 depu­ ence whether Berlin withits 3.5 million vice chairmen, Oskar Lafontaine and ties, 338 voted for Berlin, 320 for citizens, or Bonn with its 260,000 citi­ Johannes Rau, and the chairmanof the Bonn, two voteswere invalid, and an­ zens, is the German capital. parliamentary group, Horst Ehmke. other two deputies were absent. It also makes a big difference in A few days afterthe vote, the main The move of key government and terms of "political geography." Those industry and trade associations wel­ state functions would be done in "a who argued for Berlin referenced the comed the decision. The U.S. Embas­ IO-year time-frame, approximately," signal function the city has, and will sy in Bonn (Amb. VernonWalters en­ Chancellor Helmut Kohl declared have, for the commitment to help East­ dorsed Berlin) was among the first to afterthe historic vote. ern European countries in theirdifficult announce plans to move to a site near The debate on the issue had been a job of recovery from 46 years of com­ the Brandenburg Gate in Berlin. heated one, with domestic politics ab­ munist rule. One must add the damage Most important, the budget com­ sorbedunder the slogan, "Bonn or Ber­ that remained from the First World mission of the German Parliament un­ lin,"to anextent difficult to understand War, the depression of the 1920s and froze DM 30 million ($16.6 million) for manyGermans and most foreigners . 1930s, and the Second World War. for the development of the Transrapid The debate saw provincialism of During the Bundestag session maglev train project, with the recom­ politicians who said, "Why do we June 20, speakers like Interior Minis­ mendation that at least one of five need the old capital anyway?" It also ter Wolfgang Schauble, (a potential maglev routes proposed, with Berlin saw the intervention of financial and successor to Kohl after 1994), and for­ having a central role in all of them, be business interests linked to circles in mer Chancellor Willy Brandt, placed on the new National Transport the West who feared that a vote for stressed the key issues: Infrastructure Development Plan that Berlin would be one for state pro­ Schauble reminded listeners that is to be passed at the end of this year. grams to reconstructthe capital. This, the changed parameters of politics The fiveproposed routes are: they thought, would weaken the "free after reunification did "not allow • Bonn-Cologne-Berlin: to con­ market" system in Germany. things to remain as before in the 11 nect the two administrative centers of The case of Count Otto Lambs­ old German states-neither in Bonn the future German government; dorff, the partychairman of the liberal nor in the Rhineland." He called the • Frankfurt-Berlin: to connect Free Democrats, who voted for Bonn, 1948-49 Berlin air liftand the interna­ the north-south high-speed ICE train is exemplary. A devout free market tional sympathy for Berlin, vital to the route that runs through Frankfurt, "democrat," he voiced "great concern" birth of the Western-oriented, anti­ with Berlin, via Potsdam, Leipzig, as much as a year ago that the govern­ communist state of the Federal Re­ and Erfurt; ment-initiatedprograms planned for the public of Germany. He said that that • A "triangle" connecting the economic reform in Eastern Europe sympathy for Berlin should not be be­ three northern airports of Hanover, (and eastern Germany) would bypass trayed now, nor should it be over­ Hamburg, and Berlin; restrictive General Agreement on Tar­ looked that the return of government • A "midway" route from Han­ iffs and Trade and International Mone­ to the city would exemplify the key over to Leipzig, via Magdeburg and tary Fund rules. role of Germany in the rebuilding of Halle, with a branch arm from either Lambsdorff and his co-thinkers EasternEurope . Magdeburg or Halle to Berlin; knew that a decision for Berlin would Brandt, who is Berlin's former • A Berlin-Leipzig or Berlin­ make the biggest industrial city in Ger- mayor, declared that "Germany will Leipzig-Dresden route.

EIR July 5, 1991 International 45 From New Delhi by Susan Maitra

Rao cabinet affirms continuity home in Delhi handling national af­ Belying media predictions, the newly elected Congress (I) fairs . governmentis an extension of the Indira-Rajiv tradition. The oth�r major Indira-Rajiv loy­ alist, ArjunSingh , has been given the less controversial Human Resource Development portfolio. Singh is a very powerful figure in the Congress DesPite oppoSItlon from certain text, it is considered the precursor to (I) party hierarchy, and was the chief quarters within the newly elected Con­ the Group of 15 "heavyweight" devel­ minister of the state of Madhya gress (I) party, Prime Minister P. V . oping countries. There is no doubt that Pradesh on !more than one occasion. Narasimha Rao has entrustedministeri­ Dr. Singh's appointment will be ac­ Singh served as a minister in the Rajiv al responsibilities to the individuals claimed widely in the developing na­ Gandhi cabinet for a short while, be­ who arewidely acknowledged as Indira tions, particularly in Southeast Asia sides assuming such challenging posi­ Gandhi and Rajiv Gandhiloyalists. The and Japan. In a television discussion tions as go�ernor of Punjab and vice most significant achievement of the following his appointment, Dr. Singh president of the party under Rajiv new prime minister is to have included emphasized that the modernization of Gandhi's p$sidency. in his cabinet Sharad Pawar, the chief the Indian economy will be his prime From all available indications, Ar­ ministerof the stateof Maharashtra and objective. jun Singh' Sl position in the party has the man widely projected in the media While the appointments of Dr. been further consolidated by the par­ as the Congress leader ready to lead a Singh and Mukherjee are considered ty's unexpe¢tedlygood showing in the rebellion againstRao himself. Pawar is most appropriate, little can be said state of Macllhya Pradesh in the recent likely to be sworn inas defense minis­ about the naming of Madhavsinh So­ elections. lit that state, the Congress ter, a highly prized post in the present lanki" former chief minister of Gujarat (I) under Singh's leadership turnedthe context. and a state politician with a signifi­ tables on th¢ high-profileHindu chau­ The crucial Finance Ministry job cantly reduced political base, as the vinist Bharatiya Janata Party (BJP), has been given to Dr. Manmohan foreign minister. Solanki, who did a which rulesi the state, and won 27 out Singh, who served as the governor of short stint as planning minister during of 40 seats in the Lok Sabha, the lower the Reserve Bank of India, the coun­ the later part of Rajiv Gandhi's admin­ house of parliament. According to try's central bank, during Mrs. Gan­ istration-a stint which ended with sources in Delhi, handling a less con­ dhi's last tenure, and as deputy chair­ the electoral defeat in the 1989 general troversial pprtfolio will free Singh to man of the Planning Commission, the elections---can hardly be considered make significant inputs into the party body which prepares India's five-year qualifiedfor the job. The appointment reorganization which is reportedly on plans, during the Rajiv Gandhi tenure. can only mean that Prime Minister the anvil now . The Planning Commission will now Rao, who was Mrs. Gandhi's foreign It is alsO evident from the broad be under Pranab Mukherjee, who had minister following her returnto power representatipn in the cabinet from all served as Mrs. Gandhi's finance min­ in 1980, will make the foreign policy parts of the country, that while the in­ ister and was considered as the num­ decisions himself. Traditionally, the dira Gandhi-Rajiv Gandhi loyalists ber two in her cabinet during the 1983- Congress (I)-led governments' for­ dominate, the present leadership of 84 period. eign policy has been conducted from the party is trying to integrate the party Besides establishing his creden­ the prime minister's office, as was on a nationwide basis. To start the pro­ tials as both a money man and devel­ particularly evident during the reigns cess is particularly essential in light of opment planner, Dr. Singh was most of Jawaharlal Nehru, Indira Gandhi, the weak sbowing of various centrist recently the Geneva-based secretary and Rajiv Gandhi. parties in dl.e latest elections, and the general of the South-South Commis­ The other important portfolio, steady, although not spectacular , sion, a grouping which formed at the Minister for Home Affairs and Inter­ growth of the right-wing Hindu reli­ initiative of Malaysian Prime Minister nal Security, has been given to the old gious party. the BJP. There are indica­ Dr. Mahathir Mohammad to address Congress (I) stalwart from Maharash­ tions already iliat some of the leaders development issues. Though the com­ tra, S.B. Chavan. Chavan held the of ilie non-Congress centrist parties mission did little to initiate new policy same portfolio under Rajiv Gandhi are hobnobbing with the influential programs in the global economic con- and is a state politician who is more at members of the ruling Congressparty .

46 International EIR July 5, 1991 Dateline Mexico by Carlos Cota Meza

Kissinger's depopulation plan exposed ington, D.C. A congressman charges the U.S. National SecurityCouncil with While Erasmo L6pez was speak­ ing, certain deputies from the ruling a plot to reduce Mexico's population growth. PRI party-those charged with keep­ ing parliamentary debate "under con­ trol" to ensure that it is as banal and uninteresting as possible-j umped from their seats. They couldn't toler­ ' ate the fact that in the Chamber of Now we know where Mexican ny "catastrophe-mongering"and went Deputies, imperialists like Henry Kis­ government officials get their phony on to prove his assertion. He gave a singer and George Bush were being catastrophic view that supposedly detailed report on developments in denounced by name. One PRJ deputy comes to them from the simple fact Brazil, where both the health minis­ even babbled, "We'll be accused of thatMexicans exist. It's an imperialist ter, Dr. Alceni Guerra, and a group intervening in the internal affairs of policy dictated by the intelligence of 165 congressmen have exposed the the United States ." agencies of the U. S. government and anti-natalist programs imposed on the But not all PRJ members think that its embassies," charged federal con­ country by the U.S. government and way. On June 24, the daily El Dfa gressman Erasmo L6pez Villareal on the international malthusian agencies. Latinoamericano published a front­ June 11, before a plenary session of As the congressmen listened in as­ page article under the headline "The Mexico's Chamber of Deputies. tonishment, L6pez Villareal de­ United States vs. the Third World: L6pez Villareal was speaking on scribed recently declassifiedU.S. Na­ War Against Natality." The article behalfof the congressional caucus of tional Security Council documents of bore the byline of Carlos Wesley of the Authentic Party of the Mexican 1974-77 which outlined a secret cam­ EIR . Revolution (PARM), and his speech paign against 13 developing coun­ Wesley's article denounced exact- was entitled "Regarding the Demo­ tries, to force them to reduce their 1y the same NSC depopulation memo­ graphic Policy of the Mexican Gov­ populations. Mexico was among the randa authored by Henry Kissinger. ernment." The PARM congressman 13 countries listed. The documents El Dia Latinoamericano is the weekly was speaking in reference to the offi­ were the subject of a May 3, 1991 EIR supplement, distributed continent­ cial visit to Mexico by Dr. Nafis Sad­ cover story . wide, of the daily El Dia, sometimes ik,t he director of the United Nations L6pez reported that "one of the se­ considered to be a "semiofficial" Population Fund, a few weeks earlier. cret National Security Council docu­ newspaper of the Mexican govern­ In the context of this visit, Mexi­ ments dates from 1974, and is entitled ment, and sometimes as a mouthpiece can governmentofficials in charge of 'Repercussions of World Demograph­ for a faction of the pRJ·. health and demographic policy issued ic Growth on the Security and Foreign Faced beforehand with congres­ a number of alarmist statements re­ Interests of the United States.' Anoth­ sional refusal to form a commission garding Mexico's demographic er, dated 1976, is entitled 'First Annu­ of inquiry to investigate the so-called growth. Dr. Sadik wamedthat ifMex­ al Report on the United States' Inter­ "family planning" programs, which ican population growth weren't halt­ national Demographic Policy.' " L6pez defined as "a violation of the ed, "there will be political instability He also told the congressmen that most fundamental human right, the in the country." Manuel Urbina, di­ the documents were written and right to life," the P ARM congressman rector of the National Population signed "by then National Security delivered, in the name of his party, a Council, seconded this, with the state­ Council director, Henry Kissinger. set of the NSC documents to the presi­ ment that "social violence will invade Current President George Bush, who dent of the body and told her that Kis­ Mexico's large cities." Emilio Gam­ at that time was CIA director and sub­ singer's documents "establish the im­ boa Patr6n, director of the Mexican sequently ambassador to China, col­ perialist character of the demographic Social Security Institute, added that laborated in the formulation and appli­ policies currently being imposed by by the year 2000, there won't be cation of these policies." The PARM the Mexican government." The docu­ schoolsfor children or jobs for adults. deputy explained that the documents ments will be filed at the Mexican Li­ Congressman L6pez charged that were declassifiedin 1989 and are cur­ brary of Congress where they can be all these statements amounted to pho- rently available to the public in Wash- freely consulted by the public.

EIR July 5, 1991 International 47 Panama Report by CarlosWe sley

agents are tied to drugs U.S. get into the fishingbusines s. Barreiros They stole millions and were in business with Colombia's became the president, Lewis Galindo "God ather, " but Bush allied with them. Why? the vice president, FernandoEleta the f treasurer (tti.e documents also name his brother Carlos as treasurer at one point), and Morgan the secretary. Pro­ marsa bought two boats from the Prominent Panamanians employed Michelsen, "Godfather" of the ar­ Spanish company Cieisa-owned by by the U.S. government to oust "drug­ rangement by which power in Colom­ Celso Barreiros and his brother Vale­ trafficking"Gen . Manuel Noriega and bia is being handed to the drug traf­ riano. "bring democracy" to Panama orga­ fickers. It was L6pez Michelsen who The pur¢hase was financedby the nized a scam by which millions of dol­ carried out the initial negotiations Banco Exterior of Spain, through its lars were stolen fromPanamanian tax­ with drug cartel capos Pablo Escobar Panamanian subsidiary owned by the payers, documents obtained by EIR and Jorge Ochoa in 1984 at Panama's Eletas. But the more than $6 million show . The scam was interwoven with Marriot Cesar Park Hotel, co-owned loan was guaranteed by Cofina. At the drug traffickingand drug-money laun­ at one time by Lewis Galindo. Japan's time, the pJtesident of Cofina was­ dering. In fact, it was carried out with Aoki Corp. is another major investor you guessesi it-Juan David Morgan, the help of Celso Barreiros, arrested in the hotel, and one of Aoki's part­ one of the owners of Promarsa. last year in Spain for traffickingdrug s, ners is Prescott Bush, brother of the To get iCofina to guarantee the as a result of "Operation Necora." current occupant of the White House. loan obtain�d by Barreiros on behalf According to the officialPanama­ Carlos and Fernando Eleta own of the buyer j Promarsa, to pay the sell­ nian government records obtained by Banco Exterior, through which the er, the same Barreiros, on behalf of EIR , the Spaniard Barreiros swindle was carried out. Members of Cieisa, Bam:o Exterior vouched that Rodriguez was an accomplice of Pan­ Panama's millionaire elite, the Eletas they knew Barreiros and had loaned amanians Gabriel Lewis Galindo, are business partners of Endara. More him "important amounts over eight brothers Carlos and Fernando Eleta important, they have ties to Bank of years , with satisfactory results. " Almaran, and Juan David Morgan, in America, General Mills, and Phillip The twoboats were renamed Pro­ the multimillion-dollar swindle Morris, the tobacco company which marsa I and Promarsa II, but they against the Panamanian treasury . has invested money to promote drug don't seem tohave done much fishing. Most of the Panamanians were em­ legalization. Carlos was ' the CIA's Investigators report the vessels were ployed by the U.S. government in the bagman for the anti-Noriega opera­ used to haul drugs from Panama to campaign to oust General Noriega. tions until his arrest in April 1989, in Spain, and qrug money from Spain for They are all considered viable re­ Macon, Georgia, for masterminding a laundering in Panama. placements, in the event Washington plot to smuggle 600 kilos of cocaine Shortly ,after the boats were pur­ decides to change the current U. S.­ per month into the U.S. and for drug­ chased, the� Barreiros brothers, who installed government of Guillermo money laundering. Afterthe U. S. in­ were supposed to sell the catch Endara, which is itself controlled by vasion of Panama, lawyer Gregory through their Spanish companies, officials involved in the drug trade . Craig, of the intelligence-linked law ,went out of business in Spain. Then Gabriel Lewis Galindo ran the firm Williams and Connolly, got the Promarsa in Panama, owned by Bar­ anti-Noriega Civic Crusade in Wash­ U.S. government to drop all charges reiros, Morgan, Lewis Galindo, and ington, an office funded by the U.S. against Eleta because of "insufficient the Eletas, defaulted on the loan. government's National Endowment evidence. " The money, of course, was owed for Democracy, a.k.a. Ollie North's Juan David Morgan, a lawyer, to the Eletas' Banco Exterior, which "Project Democracy." A member of was the president of Cofina, the Na­ demanded thatCofina , of which Mor­ Panama's millionaire elite and a for­ tional Finance Corp. established by gan---'-the secretary of the defaulting mer ambassador to the U. S., banker Panama's government to promote Promarsa-was president, honor its Lewis Galindo-his family owns business investments. It was Cofina guarantee. Cofina recommended that Panama's Banco del Istmo-is a long­ that was swindled. the government make good the loan to standing business associate of former These gentlemen set up a compa­ "protect theination's good credit," and Colombian President Alfonso L6pez ny in Panama, Promarsa, ostensibly to Banco Exterior got paid. More later.

48 International EIR July 5, 1991 Report from Rio by GeraldoLino

The Brazil that can say yes one to greet them at Andrews Air President Collor was prepared to concede everythingon his recent Force Base. Somewhat later, Deputy visit to Washington-ifthe nationalists at home had let him. Secretary of State Lawrence Ea­ gleburger and Assistant Secretary Bernard Aronson, lower-level offi­ cials, showed up to greet the Brazilian President. Brazilian journalists re­ portedthat the early arrival was due to Just as the Brazilian edition of the blocked a number of the government's the fact that during the flight, Collor book The Japan That Can Say No, projects, including an immediate sign­ took over the plane's controls and ac­ by Shintaro Ishihara, was arriving in ing of a debt accord and the idea of a celerated well beyond the cruising local bookstores, in which the author new U.S.-Brazil military pact. De­ speed. calls for his country to seek greater prived of the main goodiesin its market The following day at dinner, Bush independence from the U. S., the visit basket of concessions, the Collor gave Collor the "paternal" treatment. of Brazilian President Fernando Col­ agenda in the U.S. was looking very Referring to the Brazilian President's lor de Mello to Washington, from weak, which even led Itamaraty to con­ sports fetish and his piloting skills, June 17-20, demonstrated that this sider canceling the trip. But the trip Bush greeted Collor as "Indiana country's foreign policy is based on wasn't canceled. And althoughthe deli­ Jones" and "Captain Collor," thank­ an exactly opposite principle. cate issue of a military pact was never ing him for "not making any pirou­ The Collor administration's will­ raised-the Brazilian Armed Forcesare ettes over the White House." As the ingness to align itself fully with Wash­ violently hostile to the idea-Washing­ Washington Post reported, Bush ex­ ington was clear in the preparations ton made progress on the issue of Bra­ pressed regret that he had never pilot­ for the presidential trip, when the or­ zil's foreign debt arrears. The Collor ed Air Force One. ders from Itamaraty, Brazil's Foreign government agreedto a July 1, first in­ On June 19, during a luncheon or­ Ministry, were that all obstacles were stallment of $900 million on these back ganized by members of the U.S. es­ to be removed that might complicate monies due. tablishment, the Brazilian President an understanding between the two Analyst Martin Westlake, former witnessed the "subtlety" with which governments, or get in the way of Bra­ managing editor of South magazine, the leaders of the new world order deal zil's obtaining U.S. support on the emphasized the importance of Brazil with their interests. Among those in­ two agenda items deemed fundamen­ within the Anglo-American new vited was Gen. Colin Powell, chair­ tal by Brasilia: the negotiation of the world order, in an article published in man of the Joint Chiefs of Staff, foreign debt and the transfer of ad­ the June 25 issue of the British Guard­ whose presence contrasted with the vanced technologies. ian. "Brazil is the swing country of fact that no Brazilian military officer From the other side, Washing­ the silent revolution which has been of similar rank was present. Aware of ton's own extensive list of items on the unfolding in Latin America," he as­ Collor's habit of jogging on Sundays bilateral agenda ranged from Brazil's serted. "From the Rio Grande to Tier­ wearing flamboyant T-shirts, Powell immediate conclusion of a foreign ra del Fuego, nations have been under­ offered him one with the inscription debt agreement with its creditor taking economic policy reforms that "Operation Desert Storm," which the banks, to the speeding up of the "pri­ in many cases are as deep-seated and President promised to wear in Bra­ vatization" of state sector companies, far-reaching as the dismantling of silia. to the signing of a new U.S.-Brazil communism in Eastern Europe." The next afternoon, Collor had the "military cooperation" agreement, to Westlake quotes one unnamed banker most secretive meeting of the whole the immediate recognition of interna­ who says that without Brazil, "Latin trip-with leaders of the U. S. Jewish tional pharmaceutical patents and the America will only have experienced community. While the Brazilian me­ total opening of Brazil's computer half a revolution." dia hasn't said a word about the event, market to foreigners. Upon his arrival in Washington, it is almost certain that it was orga­ But the intention of the inner core Collor got a taste of how he would be nized by Edgar Bronfman, who was of the Collor government was spoiled treated by his hosts. Having landed a Collor's interlocutor during his first by nationalist groupings in the military half-hour early, the presidential dele­ trip abroad, as President-elect in Janu­ and the national Congress, which gation discovered that there was no ary 1990.

EIR July 5, 1991 International 49 InternationalIntel ligence

Santa Cruz Abreu , the Brazilian military face a further imminent catastrophe which Europ ean treaty of commander of the Amazon region, during a could include epidemics and famine if life­ union is nearly ready presentation to congressmen in the city of supporting needs arenot rapidly met. Manaus. "The Canadian Physicians for the Pre­ The documents go on to say that mis­ vention of Nuclear War have asked: How is Preparations for the new treaty on European sionaries' duty is to use whatever means and political union are in their final phase, after it possible that the international community resourcesare available "which will resultin allowed its governments to place an entire most of the 12 foreign ministers of the Euro­ the defense, the security, and preservation civilian population in such jeopardy? Cana­ pean Community member nations (excep­ of that immense territory, and the human da must accept our share of the responsibili­ ting Britain's Douglas Hurd) signaled their beings inhabiting it, who are the patrimony ty for rebuilding after the carnage of this agreement with the draft treaty on June 17. of mankind, and not the patrimony of those tragically Wrong war." With some re-editing, the final draftwill countries which say, pretentiously, that be presented to the foreign ministers and these territories belong to them." The WCC then passed on to the 12 heads of state and documents also states that the Amazon must government of the Community that are to Bhutto andfamily be defended from any activity which might decide on the entire package at their Luxem­ "destroy"or "modify" it, anything "that civ­ fe ar terror attacks bourg meeting on June 28. ilization calls progress." At the center of the new treaty, which is In a related development, Brazilian Pakistani opposition leader Benazir Bhutto, to complement the 1957 1h:atyof Rome , are Deputy Joao Fagundes has charged that the formerprimeminister, who recentlystated two initiatives: I) a Franco-German one for some of the foreign religious missions are that India's"Ra jiv Gandhi becamea victimof a federal structure of the new union, which "importing" Indians to the Amazon from the new wbrld order" beforeshe left to attend the Germans want to beeven more definitely Guyana and Surinam, in the name of "ecolo­ Gandhi's funeral in New Delhi, has herself aiming toward a "United States of Europe," gy." The Indians only speak English and been the target of several incidents recently, including eventually Eastern Europe; 2) an are trained to fight for the establishment of along wi� her family. In mid-June, gunmen Italo-German initiative for an upgraded sta­ "reservations," in order to gain land, he approach� her house, firinginto theair as her tus of the European Parliament, which is to said. bodygtJlll$ firedthem. at receive certain legislative powers and the More �eriously, Judge Nabi Sher Junejo right to elect the head of the European Com­ was "professionally" ambushed and assassi­ mission. nated in �arachi on June 18, while driving The defense cooperation aspect is being MP urges Canadato to court. Judge Junejo was trying the case kept out of the agreement for the next few of Asif Ali Zardarl, Bhutto's husband. Ju­ years, and the project of a EuropeanCentral lift sanctions on Iraq nejo has sentenced 11 people to death and Bank and intensified monetary cooperation four to life in prison for killing police, rob­ with the final phase of the European Mone­ "Canada must urge the immediate lifting of bery, and kidnaping. The attack was so pro­ tary System was postponed to the second non-military economic sanctions against fessional that Junejo's bodyguard did not half of the 199Os. Iraq," said Member of Parliament Svend even have time to react. Sind province chief Robinson (Burnaby-Kingsway), the New minister Jam Sadiq Ali, who has often ac­ Democratic Party's External Affairs Critic, cused Bhlltto's Pakistan People's Party of WCC declares Amazon before the House of Commons on June 19. violence, "lamed the pro-PPP People's Stu­ "Mr. Speaker," he said, "the war in the dent Fedetation for the attack. 'patrimony of mankind' Gulf may be over but the casualties continue to mount. The Wo rld Council of Churches is sending "The U.N. Undersecretary General re­ Balticrepublics pursue out to its missionaries, as well as to the Unit­ ferred to the near apocalyptic conditions fol­ ed Nations and other international organiza­ lowing the coalition bombing of Iraq. Uni­ fightfo r recognition tions, a document proclaiming that the Am­ cef has reported Iraqi children have stopped azon is not subject to national sovereignty. growing because they are not getting enough The first closed session of the current Con­ "We consider that the totality of the Ama­ to eat. Water-borne diseases are wide­ ference on Security and Cooperation in Eu­ zon, most of whose area is found in Brazil, spread. rope (CSCE) was dominated by debate over but which also includes portions of Ve nezu­ "SurelyCanada must urge the immediate the right at'the Baltic republics to indepen­ ela, Colombia and Peru, is the patrimony of lifting of non-military economic sanctions dence, reported Reuters on June 20. DIIDish mankind," the document states. against Iraq . As the U.N. Secretary General Foreign MinisterUffe Ellemann-Jensen told The document was disclosed by Gen. reported in March, the Iraqipeople may soon the Soviet delegation headed by Deputy For-

50 International EIR July 5, 1991 Brilfly

• CHANCELLOR KOHL ofGer­ many and Premier Bielecki of Poland signed the new long-term German­ eign Minister Yuli K vitsinsky that the Indian Ocean. Polish Treaty, with both foreignmin­ U.S.S.R. was "hiding behind a smoke­ China claims all of the SpratIys, and isters and past German Chancellor screen" when it claimed that the Baltics President Yang Shangkun said on a visit to Willy Brandt attending the ceremony were an internal matter for the Soviets to Indonesia earlier in June that Beijing has in Bonn on June 17. The document handle. "indisputable sovereignty" over the islands. includes a German pledge to help the Ellemann-Jensen, backed by the repre­ Polish economy in its transformation sentatives of Belgium, France, Sweden, and into a "social market economy." Norway, gave a speech in which he said that Will ZPG maniacs the Baltics had "not yet got the freedom and resort to nuclear bombs? • CHINESE PRESIDENT and indeperidence which their populations have military strongman Yang Shangkun so clearly said they desire and which they Certain strategic planners are beginning to called June 12 for a "positive re­ so clearlyhave a right to .. ..In particular, think that it may be necessary to use nuclear sponse" from Taiwan to the reunifi­ we appeal to the government of the Soviet weapons, at some point during the 1990s, cation of China in the 1990s,the of­ Union to refrai,n from �l acts of violence against "population explosion" ftashpoints ficial news agency Xinhua reported.' and intimidation by 1ts ,armed forces in the like India and China, a leading British strat­ Yang, speaking to Chinese groups in Baltic states." egist told this news service. Bangkok, churned that "revitalizing Es­ The three Baltic republics-Latvia, Responding to questions about the 1974- and reunifying China is the common O informa­ t nia, and Lithuailia�pened an 77 National Security Council documents desire of all Chinese people including in Bonn, on June 19, to present tion ,office which EIR has unearthed, which character­ the overseas Chinese." He called on the,ircause to the Germanpublic and to serve ize Third World popUlation growth as a "na­ overseas Chinese to support unifi­ as a documentationc enter and contact office tional security threat,"he reported attending cation. is betw�n Germans and Baits. The office a U.N. conference on "The Future of Inter­ t a preparatory step to­ designeq , o Serve as national Security," which took place in Ja­ • SOVIET KGB HEAD Gen. Vla­ in wardt\dJ-scaie diplomatic representation pan in June. "Certainly, demographics have dimir Kryuchkov charged on June 17 the future. moved to the center stage of discussions. that the Western intelligence servic­ Peopleare beginning to pose the question: In es, with the CIA playing a prominent the post-Cold War era, what are the foremost role, were mapping out plans "for the Indonesia tries to calm threats we face? The answers obviously in­ pacification, ... d even occupation, of volve North-South, the Mediterranean , de­ the Soviet Union, under the pretext Islands crisis mography, the clash for energy resources, of establishing international control Sprcitly and the environment." over its nuclear potential. " Indonesia will sponsor an international con­ He referred to certain "demographic ference in July in an attempt to negotiate set­ time-bomb" regions such as North Africa, • A JAPANESE Foreign Ministry tlement of the potentially explosive situation China, "India absolutely," and Southeast spokesman said on June 18 that the in theSpratly Islands, in the South China Sea, Asia, "but obviously not black Africa, return of Japaneseislands held by the the BBCreportedon June 20. The conference, since-it may sound cynical, but that's the Soviet Union since World War IT is to be held in Bandung, where the Non­ way it is-there are built-in controls there , no longer a precondition for aid to Aligned Movement was founded, will bring like famine and AIDS." Moscow, although large-scale fi­ together allthe nations involved: the People's Then he said: "I can tell you I now hear nancial support shoub:l not be ex­ Republic of China, Malaysia, Vietnam, the talk about the nuclear deterrents being used pected. Philippines, Thiwan, and Brunei. to combat the popUlation explosion. As peo­ Fighting broke out between Chinese and ple mull through the question of whether • BRAZIL'S former President Vietnamese warshipsin 1988 when the Chi­ we will, or will not, meet the challenges to Jose Samey says Henry Kissinger nese forced Vietnamese troops off one of international security, and as they see the wamed him that Brazil must never the islands. All the invited nations but Bru­ population explosion as such a challenge, become a great industrial power. nei have stationed troops on some of the they are beginning to think that nuclear "We should not forget that the United islands, and more fighting is possible. The weapons are the only response, ultimately. States has the impression, in relation SpratIys, although uninhabited, are the key Maybe not immediately, but down the road. to Brazil, that we can be a great Ja­ to control of huge fishing grounds and the Thinking about this problem is now moving pan, and that is extremely danger­ neighboring seabed, believed very oil-rich, to center stage, as people answer the ques­ ous," Samey told the Rio daily Tribu­ and are also strategically located close to tion, what are the threats to international na da Imprelisa, citing Kissinger. major sea lanes linking East Asia with the security?"

ElK " JUly 5, i991 International 51 �TIillNational

CFR eyes u.s. role in U. S. S.R. civilwar

by Webster G. Tarpley

In his recent farewell breakfast with reporters, outgoing Di­ U.S.S.R., an item which had drawn some response fromthe rector of Central Intelligence William Webster raised the Soviet press. possibility that the U.S.S.R. might break up during the Whether or not it is desirable to have a civil warin the course of 1991. He talked about scenarios according to which U.S.S.R. is the momentous issue. Humanity and reason say Moscow could lose control over the Soviet nuclear forces. absolutely no to civil war. N�ce that the rejection of civil Webster's remarks called attention to the question of whether war should not be construedas a commitment to the integrity the Bush administration and its British maitres a penser are of the prison house of peoples. In his West Berlin address of seeking, in the wake of the Gulf war, to exacerbate Soviet Oct. 12, 1988, Lyndon LaRouche offered the U.S.S.R. a internal difficulties in the direction of all-out civil war. comprehensive solution to the breakdown crisis in Eastern Such ruminations are being conducted on a large scale Europe and the U.S.S.R.: MO$cOW was encouraged to grant in the U.S. intelligence community, as indicated by a new self-determination and indepeo.dence to the Eastern Europe­ volume, The Rise of Nations in the Soviet Union, published an states, and to the peoples of the U.S.S.R. who desire to in June by the New York Council on Foreign Relations. establish their own independent sovereignty. In return, the These essays, edited by Michael Mandelbaum, reflectpapers West must launch a vast program of productive investment delivered at a New York City CPR symposium last Oct. 25- in these areas to promote the scientific, technical, and pro­ 26. ductive modernization of the �conomies. During 1989-90, The CPR announced the volume with a news release after the fall of the Berlin Wall, this aspect was further con­ issued on May 20, which starts off with the bald statement: cretized by LaRouche in the formof the Paris-Berlin-Vienna "The Soviet Union is beginning to break apart." The release infrastructural and productive triangle. These approaches are goes on to specify that the volume is concerned with such required to make sure that existing nations, new democra­ questions as: "How will Western Europe and the United cies, and newly emerging states all be economically viable States react if millions of economic and political Soviet refu­ as the basic precondition of waravoida nce. gees flee westward? What role should supranational institu­ But civil war is the opposite of all this. Civil warspells tions such as the International Monetary Fund, the World a hecatomb at least on the scale of the civil warin the former Bank, and the European Economic Community play? Will Russian Empire after 1917, which claimed the lives of many the Kremlin be able to maintain exclusive control of Soviet millions. Civil war today may well be fought with nuclear., nuclear weapons? What can the United States do to reduce chemical, and biological weapons. Civil warmeans that no the likelihood of such adverse outcomes as the rise of Russian people or nation will see their legitimate aspirations fulfilled fascism and Islamic fundamentalism? Under what circum­ in a peaceful, equitable, and orderly manner. Above all, stances might the United States deploy military force either since the area in question deploys the most formidable nucle­ unilaterally or as a part of a larger United Nations or multilat­ ar potential the world has ever seen, there is grave danger eral force?" This last, obviously sensitive point had already that civil war between the Bug River and Vladivostok will been raised by a Time magazine item published after the end spill over into an international nuclear conflagration, even a of the Gulf war which talked of a possible "Operation Steppe universal one. Storm" in which U.S. military forces would be sent into the In the studies they have now placed in the public domain,

52 National EIR July 5, 1991 the CFR authors are clearly profiling and toying with the values for dealing with their problems." This is to include evident possibilities for starting such a civil war. Classified the lethal embrace of the malthusian-genocidal International documents are likely to have gone further down this road . Monetary Fund and the World Bank as well as NATO, but TheCFR authors are not describing methods of infrastructur­ only "observer status" in the European Community. Motyl al investment that might make war avoidance possible. Rath­ also wants the U.N. to take over a leading role in administer­ er, they are seeking to identify the ethnic , political, and ing the republics in what sounds suspiciously like mandate institutional fault lines which might open up into armed con­ status. Most sweeping is Motyl's proposal for a "second flict. They also open a discussion of foreign intervention, on Nuremberg, at which the leading representatives of the for­ themodel of theBritis h, French, U.S., Japanese, Greek, and mer communist regimes and their collaborators would stand relatedinterventions in the post- 1917 civil war. trial and be sentenced for their crimes against humanity. Only Mandelbaum's introduction includes these comments: the West has the moral authority and the political clout to "Even if Western governments conclude that they would engage in such a replay of history ." A glance at the genocide prefer to see the Soviet Union preserved in some form , it against Iraq ought to be enough to judge whether the U.S. may well bethat nothing they-or anyone-cando will keep and the West have any such moral authority, or whether their it together. The continuing collapse of the country could armed forces are capable of freeing anybody today . produce farmore instability than has occurred thus far, and Another essay is entitled "The Soviet South: Nationalism that could, in tum, present the West with a third set of issues. and the Outside World," by Ronald Grigor Suny. This is a Thenations of WesternEurope could findthemselves flooded survey of developments in the Transcaucasus and Muslim with immigrants from the western republics of the Soviet Central Asia. Suny is a professor at the University of Michi­ Union. The West would then have to either try to absorb gan whose method of approach is illuminated by the title of millions of people for whom it is not prepared or, in effect, his most recent book, Party. State. and Societyin the Russian reconstruct theIron Curtain. Civil War: Explorations in Social Hi$tory. which he co-edit" "There is another , even more dangerous possibility. The ed with other authors. rise of nations and nationalism has already generated vio­ More specific conclusions are drawn in the concluding lence, which could grow and spread until it becomes a civil essay by Jeremy R. Azrael of the Rand Corp. Among Az­ war. The national question has already drawn the Soviet rael's credits is a Rand study entitled "Emergent Nationality army further into the political arena than at any time since Problems in the U.S.S.R.: A Project Air Force Report Pre­ 1917. A number of its officers have expressed vehement pared for the United States Air Force," dating from 1977. sentiments in favor of preserving the Union, as well as out­ After surveying the breakup of the U,S.S.R. fromthe points rage -at the large-scale avoidance of military service in the of view of nuclear proliferation, Russian fascism, Islamic non-Russian republics, particularly the Baltics ....In the fu ndamentalism, and balkanization, Azrael proposes mea­ event of civil war, the West would have to be concernedabout sures to "meet the challenge": "We may eventually have to the possibility that violence would spill over the borders of consider much more drastic, emergency measures to deal the Soviet Union into other countries, such as Poland or with the consequences of our inability to secure more favor­ Turkey. There would also and inevitably be grave concerns able outcomes in the time available .... about thecontrol of the thousands of nuclear weapons. . . ." "To indicate where the process might end, . . . it may Alexander J. Motyl of the Harriman Institute of Columbia not be inappropriate to point out that, among others , we University, in his essay entitled "Totalitarian Collapse, Im­ should probably be planning for situations in which theUnit­ perial Disintegration, and the Rise of the Soviet West: Basic ed States cannot effectively protectits interests without de­ Implications for the Soviet West," provides helpful hints for ploying, and possibly even employing, military force, either U.S. policymakers, many of which seem apt to favor the unilaterally or as part of a larger United Nations or multilater­ most apocalyptic outcomes. "Pressure Gorbachov to dissolve al force. Possible cases in point include the acquisition of the Soviet Union immediately and to replace it with a confed­ Soviet nuclear weapons by hostile and adventurist groups or eration of sovereign states" is his first suggested diplomatic regimes, the outbreak or threatened outbreak of large-scale opening gambit. Then "warn that the West will respond to hostilities along or across internationallysensitive Soviet (or the repression ofrepublics and 'democrats' with diplomatic ex-Soviet) borders, the initiation of genocidal or potentially and economic sanctions along the lines of those imposed on genocidal attacks on U.S.-linked groups (e.g., Jews or Ar­ Iraq after Saddam Hussein's invasion of Kuwait." We are menians), and/or the outbreak of a Russian civil war pitting back to Operation Steppe Storm. But could this policy do an embattled democratic regime against insurgent neo-fas­ something positive for the republics and peoples, including cists. Although the force requirements to deal with these the Russians themselves, who are striving for freedom? Mo­ situations would vary greatly, depending on the particulari­ tyl's next suggestion rules out any such hope: We must "en­ ties of the scenario, the need to consider U.S. force require­ velop the republics in as many supranational institutions as ments in thinking seriously about prospective developments possible so as to provide them with stable structures and on the Soviet nationality front speaks eloquently for itself."

EIR July 5, 1991 National 53 WHEREAS cholera, typhoid, and gastroenteritis have be­ come epidemic throughout Iraq since the war due to the critical scarcity of medicine and the inability of Iraq to pro­ cess sewage and purify the water supply; Rep. GonuUez seeks WHEREAS the system of medical care has broken down in Iraq, resulting in the closure of up to 50% of Iraq' s medical facilities due to acute shortages of medicines, equipment, to lift Iraq embargo and staff; WHEREAS the incapacitation of 18 of Iraq's 20 power On June 24, Rep. Henry B. Gonzalez (D-Tex.) introduced plants during the war is a principal cause of the deterioration House Resolution 180 (H.R. I80) into the House of Repre­ in public health due to the resultant inability of Iraq to process sentatives, expressing the sense of the House that the United sewage, purify its water supply, and supply electricity to States should act on an emergency basis to lift the economic health facilities; embargo of Iraq. In his comments on the floorin introducing WHEREAS the health care crisis cannot be addressed with­ the resolution, Gonzalez noted that "the war has contributed out the reconstruction of electrical facilities that enable the directly to this crisis. It is a consequence of the war. The purificationof water and treatment of sewage; destruction of Iraq's electrical infrastructure has made it WHEREAS before the economic embargo of Iraq, three­ almost impossible to treat sewage or purify water which quarters of the total caloric intake in Iraq was imported and, means water-borne diseases flourish, and hospitals cannot moreover, 96% of Iraqi revenue to pay for imports, namely treat crucial diseases." "Whether we like it or not, " said food and medicine, was derived from the exportation of oil Gonzalez, "We are perpetrating genocide ....The sanc­ now prohibited under the embargo; tions against Iraq must be lifted to save tens of thousands of WHEREAS the onset of the summer heat in Iraq will both lives. If we do not, the blood of these Iraqi children will be accelerate the spread of disease and impede its treatment due on our consciences and hands." to the lack of refrigeration facilities even in hospitals; WHEREAS the acute shortages in food in Iraq, the inflation House Resolution 180 of up to 1,000% in food prioes caused by these shortages, WHEREAS reports from the United Nations, the Physi­ thecritical scarcity of medicine, and the essential need to cians for Human Rights , the International Red Cross, a Har­ reconstruct Iraq's capacity to generate electricity to enable vard study team, other independent organizations, and pri­ sewage treatment and water purification,cannot be addressed vate U.S. citizens have documented the fact that unless the or rectified without Iraq's re-¢ntry into global commerce, at economic sanctions imposed against Iraq are immediately present effectively prohibited by the economic sanctions; lifted and Iraq is allowed to buy and import food, medicine WHEREAS the immediate .lifting of the sanctions would and equipment, especially for power generation, tens ofthou­ drastically reduce the number of Iraqi children who will die sands if not hundreds of thousands of Iraqi civilians will die in the upcoming months from malnutrition and disease and in the upcoming months; would relieve the suffering of the innocent Iraqi population WHEREAS a Harvard study team estimates that at least which is now bearing the burden of the embargo; Now there­ 170,000 Iraqi children under the age of five will die within fore , be it the next year from the delayed effects of the war in the Persian RESOLVED by the House of Representatives, that the Gulf if the imposition of the sanctions continues; United States should act on an emergency basis to lift the WHEREAS this is a conservative estimate and does not economic embargo of Iraq to save innocent Iraqi civilians, include tens of thousands of Iraqi civilians above the age of especially children, from death by disease and starvation. five who are expected to die from similar causes; WHEREAS the Catholic Relief Service estimates that more Penny resolution seeks humanitarian aid than 100,000 Iraqi children will die from malnutrition and On June 18, Rep. Tim Penny (D-Minn.) introduced a disease in the upcoming months due to the economic embar­ more limited resolution proposing that a portion of Iraqi go and destruction of the war, and the United Nations Chil­ assets be released to Unicef for the purpose of providing dren's Fund estimates that 80,060 Iraqi children may die medical and humanitarian assistance to Iraqi citizens. from these causes; The resolution resolved: "That it is the sense of the Con­ WHEREAS malnutrition has become severe and wide­ gress that the United States should ask the United Nations to spread in Iraq since imposition of the embargo and the war release through Unicef a portion of Iraq's frozen assets for due to severe food shortages and the inflation of food prices the sole purpose of providing medical and humanitarian as­ of up to 1,000%, which has effectively priced many Iraqis, sistance to the Iraqi people, particularly children, with re­ especially the poor and disadvantaged, out of the food lease of the funds contingent on Iraqi governmentacceptance market; of United Nations' oversight and control. "

54 National EIR July 5, 1991 out the Iraqi people? No. What we were doing with the attacks on infrastructure was to accelerate the effect of the sanctions. " Col. John Warden, Air Force deputy strategy chief, re­ ported that destroying economic infrastructure was meant to impose "a long-term problem on the leadership that it has to deal with [for] some time." This allows for the United States Pentagonadmits : Intent to impose its will on Iraq. "Saddam Hussein cannot restore his own electricity," Iraq is genocide Warden gloated. "He needs help. If there are political objec­ toward tives that the U.N. coalition has, it can say 'Saddam, when by Joseph Brewda you agree to do these things, we will allow people to come in to fixyour electricity. ' It gives us long-term leverage." Another Air Force planner added, "Big picture, we want­ Senior U.S. military officers admitted in remarks published ed to let people know, 'Get rid of this guy and we'll be more in the Washington Post on June 23, that the U.S. war against than happy to assist in rebuilding. We're not going to tolerate Iraq was intended to murder large numbers of Iraqi civilians Saddam Hussein or his regime. Fix that, and we'll fix your anddestroy theability of Iraq to sustain itself as a functioning electricity.' " Lt. Gen. Charles A. Homer, who ran the air nation. The same officers, led by Lt. Gen. Charles A. Homer, campaign, said that a "side benefit"of destroying Iraq 's pow­ who had overall command of the air campaign, and by Col. er grid was "the psychological effect on ordinary Iraqi cit­ John Warden III, the deputy director of strategy, doctrine, izens." andplans for the U. S. Air Force, also said that the continuing Pentagon officialssaid that because ofthe bombing, "The United Nations sanctions and embargo against Iraq have the country has roughly the generating capacity that it had in same purpose. I 92O-before reliance on refrigeration and sewage treatment became widespread." Consequently, 50% of Baghdad's sew­ Target the civilians age cannot be treated. Cholera and typhoidfever are reaching All throughout the war, Pentagon and White House epidemic proportions as a result. spokesmen, and the establishment press, claimed that sophis­ ticated precision bombingallowed the allied forces to selec­ Continuing the killing tively hit military targets, while protecting nearby civilian Testifying before Congress on June 17, Assistant Secre­ facilities and neighborhoods. It now comes out, contrary to tary of State John Kelly stated that U. S. policy is to continue these claims, thatthese "precision bombs" were deliberately the embargo on Iraq indefinitely, and not allow it to sell oil used to targetcivilian sites for destruction. for food, medicine, or any other need. "Our position," he Dismissing former claims that the damage of civilian said, "is that once we are satisfied that Iraq has a legitimate siteswas merely"coll ateral" or "accidental," the officers told need for the money, we would be willing to entertain the Washington Post reporter Barton Gellman that the "worst liftingof that particular sanction against the sale of oil. " civilian suffering resulted not from bombs that went astray On June 12, the U.N. sanctions committee ruled that but from precision-guided weapons that hit exactly where $1 billion of frozen Iraqi assets held in the U. S., Britain, intended." Switzerland, and Japan could be unfrozen to allow Iraq to Justifying this policy, the officers said that "Iraqi civilians purchase food and medicine. All four governments-led by werenot blameless for Saddam's invasion of Kuwait." "The the U.S.-refused to release the funds. A week later, the definition of innocents gets to be a little bit unclear," one of committee voted to allow $3.7 billion in frozen Iraqi assets the officers, an unidentified senior figure in the Air Force, held in 25 countries to be released. The U.S. and British told the Washington Post. "They do live there and ultimately governments are currently strong arming other states to en­ the people have some control over what goes on in their sure that no money is released. country." On June 21, Iraqi Ambassador to Japan Rashid Al Rifai Another officer, who reportedly played a central role in called on the Japanese government to release Iraq's assets, the air campaign, said that targeting civilian infrastructure and called for an end of the sanctions. "What is the objective was necessary to destroy "all those things that allow a nation of sanctions? A tragedy is going on in my country. Tens of to sustain itself." Ridiculing the claim that the bombing was thousands of children are in great danger of death and ur­ not intended to harm civilians, the officer added, "People gently need food and medicine. We appeal to the government say, 'You didn't recognize that it was going to have an effect and the noble people of Japan to expend all urgent efforts to on water or sewage,' " by bombing power plants. "Well, stop the genocide and rescue Iraqi men, women, and children what were we trying to do with sanctions?" he said. "Help who are threatened by untold dangers of annihilation."

EIR July 5, 1991 National 55 Latest Supreme Court rulings rip up U. S. Bill of Rights by Leo F. Scanlon

The United States Supreme Court is closing its 1991 tenn this is nowhere more apparent than when it argues that such with a series of rulings which lay the framework for an attack tyrannical measures are necessary in order to prosecute the on the fundamental concepts of individual sovereignty and Bush administration's "war on drugs." liberty secured by the U.S. Constitution. In a rapid-fire set The domestic and international drug traffic has been de of rulings, the Court has expanded the power of government facto legalized by this administration, and the continuous police agencies over the individual, while limiting the power expansion of prosecutorial powers is feeding a growing can­ of the federal courts to enforce the Constitution in the states. cer of corruption within the law enforcement apparatus itself. The rulings are the expression of a legal insurrection which The open advocates oflegalizationare counting on a backlash is the most serious attack on the federal system since the days which will strike down the remaining juridicalanti-drug pro­ of the Confederacy. hibitions. This catastrophe is 8Jcertainty unless a political and From June 13-24, the Supreme Court handed down land- legislative battle for the individual dignity and sovereigntyof mark decisions in: every human is joined by all friends of the Constitution. • NcNeil v. Wisconsin (June 13) • Wilson v. Seiter et al. (June 17) Hitler's Berlin, Stalin's Moscow • Florida v. Bostick (June 20) An internationalalarm has been raised at the degeneration • Coleman v. Thompson, Warden (June 24) which is overtaking American constitutional law under the • fist, Warden v. Nunnemaker (June 24) . Bush administration. The British newspaper the Guardian In the name of expeditious law enforcement, the Court recently ran an unprecedented attack on the U .S.justice sys­ has diluted the Fourth Amendment to the point that the gov­ tem, chronicling the growth of what it called "an American ernmentis virtually authorized to issue general warrants, the gulag." Authoritative American pUblications such as Legal paramount evil to which the amendment was addressed. In Times have editorialized against the "Police State of Mind" order not to inconvenience prosecutors and court officials, which dominates the Supreme Court. Loudest and most omi­ it has narrowed the Sixth Amendment's guarantee that the nous of all have been the dissenting opinions, issued by a accused shall be represented by an attorney when confronted dwindling minority of the Court's justices, which point to by the state, and has specificallyasserted that there is no right the imminent emergence of an entirely new, and tyrannical, to an attorney in post-trial appeals. The majority argues that system of law in the United States. the Great Writ of Habeas Corpus imposes an undue burden The case of Florida v. Bostick is typical. A 6-3 majority of on state courts, and strikes at the authority of the federal the Court ruled that armed law enforcement agents are entitled governmentto guarantee constitutional protections to defen­ to randomly stop, question, and search the belongings of inter­ dants in local courts. Logically, the Court has also ruled that state travelers, without a warrant, and with no probable cause. a prisoner incarcerated by the government is not entitled to The practice, which has dubious law enforcement value, is even basic conditions of sanitation, shelter, and nutrition, justified by police andthe Courtas a necessaryevil in the "war if the provision of these necessities is too great a financial on drugs." In his dissent, JustiCe Thurgood Marshallpoints out burden. that the general warrant was a very effective law enforcement More is yet to come, as the decisions in several key tool,but was nonethelessproscribed by the FourthAmendment , cases have not been announced as this issue goes to press. as are other "effective" techniques which are routinely utilized Nonetheless, the Court took the occasion of the 25th anniver­ by tyrannical governments. sary of the famous Miranda decision, in which an arresting He quotes a Florida judge who warns, "The evidence in officer must infonn a suspect of his rights, to issue a ruling this case has evoked images Qfother days, under other flags, which was widely seen as a symbolic "declaration of war" when no man traveled his nation's roads or railways without on an array of historic decisions which tried to contain, within fear of unwarranted interruption, by individuals who held the Constitution, the most powerful prosecutorial apparatus temporary power in the government." The judge says, "This in the world. Symbolism is very big with this Court, and is not Hitler's Berlin, nor s.alin's Moscow," at least not

56 National EIR July 5, 1991 yet. Similarly a federal court in the District of Columbia able to an individual wronged by the prosecution. Coleman expresseda view of such law enforcement practices which is was convicted of murder in Virginia and sentenced to death. echoed aroundthe world, with the observation that "it seems He presented an appeal which listed numerous claims to the rather incongruous at this point in the world's history that we Virginia appeals courts . Technical failures on the partof his find totalitarian states becoming more like our free society, attorney led to his claims being dismissed by the state, and while we in this nation are taking on their former trappings yet he was never clearly told whether it was lack of merit or of suppressed liberties and freedoms. " the faulty legal procedure which defeated his appeal . He filed Despite the hypocritical claims to the contrary, the Court a petition for habeas corpus review of the case on this and majorityis pursuing a legal agenda which has only a "symbol­ related grounds. ic" relationshipto the issue of drug-based crime. Its underly­ The Supreme Court has historically heard such cases pre­ ing purposeis to shiftthe nature of the American legal system cisely in order to force state courts to present explicit grounds away from what is called the "accusatory" or "adversarial" ("fair statement") for denials of appeals. This time, a 6-3 system of justice. These terms refer to the concept, funda­ majority abolished this requirement, observing that it is a mental to the Constitution, that the state is composed of free "burden" on the state courts, and additionally argued that citizens whose rightsare "inalienable"-prior to and superior Coleman had no right to ask for relief based on the failuresof to those of the government or its agents-in all cases. Even his attorney. Since the Court does not recognize a guaranteed in time of national emergency, such as a war declared by the right to an attorney in a post-trial appeal, the majority rea­ elected representatives in Congress, some of these rights soned, his attorney's failures did not deny him a right to a may be only temporarily suspended, and never overturned. fair trial. Coleman will go to his death convinced that he (Needless to say, neither the "war on drugs" nor its cousin, never had a trial, as will many others. A large percentage of "DesertStorm ," enjoys such legitimacy.) In no case may the those sentenced to death in state courts have valid habeas state restrictthe citizen without his or her having the right to claims, which now may never be heatd. challenge (as an equal adversary) the actions of the state. Justice Harry Blackmun thundered in his dissent: "In its The Court'ssystematic restriction of protections against attempt to justify a blind abdication of responsibility by the illegal search and seizure is part of this shift. The Miranda federal courts , the majority's opinion marks the nadir of the issue is subsumed by this and is one of a number of rulings Court's recent habeas jurisprudence, where the discourse of by which the majority seekto restrict access to legal represen­ rights is routinely replaced with the functional dialect of tatiOl� during the pre-trial period-the point at which the interests. The Court's habeas jurisprudence now routinely, powerof the state is potentially most arbitrary . and without evident reflection, subordinates fundamental McNeil v. Wisconsin was a representative case. The ma­ constitutional rights to mere utilitarian interests. See e.g. jority ruled that police had the right to arrest the defendant McClesky v. Zant .. ..Such unreflectivecost-benefit analy­ on one charge, and then question him about another matter, sis is inconsistent with the very idea of rights. " even though he had requested, but not received, legal assis­ tance. For technical reasons, the significance of the ruling The 'price' of freedom was characterized by Justice Marshall as "symbolic" in its The utilitarian calculus which drives the legal system in practical effects. But he pointed out that the symbolism was the United States was presented in its most barbaric form ominous, "because it reflectsa preference for an inquisitorial with the ruling in the case of Wilson v. Seiter. An Ohio system that regards the defense lawyer as an impediment prisoner sued the warden of his facility, alleging that a num­ ratherthan a servant to the cause of justice." He went on to ber of the conditions of his confinement (overcrowding, ex­ emphasize that "whenever the Court ignores the importance cessive noise, inadequate heating and cooling, unclean and of fair procedure in this context and describes the societal inadequate restrooms, unsanitary dining facilities and food, interest in obtaining 'uncoerced confessions' from pre-trial housing with mentally and physically ill inmates, and more) detainees as an 'unmitigated good,' the Court is revealing a constituted cruel and unusual punishment. preference for an inquisitorial system of justice. " Federal courts have been ruling against state and local Specifically, in an inquisitorial system, one person or prisons on such issues for years, putting whole state systems group inquires into the acts of others , and the inquisitors under direct court supervision, "even if the officials manag­ possess the combined power of prosecutor and judge. The ing the institution have exhibited a conscientious concernfor practical effect of the restriction of the Fourth and Sixth ameliorating its problems." Until today, the rule has been Amendmentrights isjust that-the individual can findhim­ that if the state imprisons even the meanest criminal, cruel self arbitrarilydetained by a power which denies him access or inhuman punishment is forbidden, no matter what burden tocounsel while he is questioned and a charge is formulated. the cost of incarceration imposes on the state. That principle In the cases of Ylst v. Nunnemaker, and the related case has gone by the boards in the U.S ., and the Court has ruled of Coleman v. Thompson, the Court majority moved to com­ that financial austerity imposed by the state on a prison can plete this process by hitting at the post-trial remedies avail- justify barbaric conditions of confinement.

EIR July 5, 1991 National 57 United States. When the Reagan administration began crack­ ing down on traffickers in the southern Florida area, Luytjes pioneered a new route which brought cocaine shipments di­ ThOITlburgh and the rectly into Pennsylvania-bypassing the concentration of drug interdiction forces in the Southeast and delivering the Contra druglink cocaine right into the hands of MedelHn Cartel distributors in the Greater New York area. by Jeffrey Steinberg and Steve Komm It is publicly documented that Luytjes's status as a wealthy GOP financier won him an invitation to Richard Thornburgh's 1983 inauguration ball. On May 31, 1989, James J. West, the Acting U.S. Attorney The Air America scandal was not an isolated affair. The for the Middle District of Pennsylvania, wrote to the United stench of gun and drug running was pervasive throughout States Parole Commission requesting a reduction in sentence Thornburgh's governorship. for a major internationaldrug trafficker, Frederik John Luyt­ Another case that was instantly suppressed, which may jes, the president of Air America, Inc. of Scranton, Pennsyl­ provide a clue as to why Thornburgh was brought to Wash­ vania. Despite the fact that Luytjes was responsible for smug­ ington in August 1988 to replace Edwin Meese, goes to the gling over nine tons of cocaine into the U. S. between 1981- heartof the Iran-Contrascandal . 84 (Attorney General Edwin Meese called Air America "the largest cocaine-smuggling organization in the country"), The Hasenfus question . West's office had negotiated a plea agreement with Luytjes When the C-123 cargo plane of Eugene Hasenfus was in May 1986, in which, in returnfor testifyingagainst several shot down over Nicaragua on Oct. 5, 1986, one of the first of his underlings, Luytjes received a slap-on-the-wrist sen­ revelations of what came to , be known as the Iran-Contra tence of 10 years in prison and a $260,000fine . Luytjes was scandal centered around an obscure air cargo firmlocated at allowed to keep over $2 million in Swiss bank deposits, a a local airport in Quarryville, Penn.; Corporate Air Services, multimillion-dollar estate in Pennsylvania, and a villa in the a small company founded in 11974 by a local right-wing busi­ Bahamas as part of the deal. nessman named Edward T. DeGaray, turned out to be the Now, prosecutor West was asking for a furtherreduction paymaster for the entire crew of ex-CIA and mercenary pilots in Luytjes's sentence. West's request carried a great deal of who ferried guns to the Contras for Oliver North and clout, given that the Acting U.S. Attorney was a longtime company. protege of the Attorney General ofthe United States, Richard According to the findingsof various congressionalprobes Thornburgh. and police investigations, many of the planes shuttling guns Thornburgh announced this May that he intends to run into Central America returned with large loads of cocaine for the U.S. Senate seat vacated by the tragic death of John and marijuana. Heinz in a plane crash in April. Pennsylvania Democratic Many of the pilots and flightcrews of those secretairlift State Committee chairman Anthony May says that missions, including Eugene Hasenfus, were paid through Thornburgh's "law-and-order, squeaky-clean image" is pho­ Corporate Air Service's accounts at the Farmers First Bank ny, and that his party is going to expose Thornburgh's seamy of Lititz, Penn. Investigators established that Corporate Air past. Services had been contractedby the CIA to work in conjunc­ If May and the Democratic senatorial nominee Harris tion with Southern Air Transport, a firm founded as a CIA Wofford are serious about their promises to expose proprietary in 1960. DeGaray purchased the C-123 shot Thornburgh's corruption before the Pennsylvania voters, down over Nicaragua with a $300,000 check drawn on the they would do well to look into the Air America case, as well Southern Air Transport Miami bank account. That plane, as the case of another Pennsylvania private airline which was ironically, had been sold several yearsearlier by RikLuyt jes deeply implicated in the Iran-Contra scandal and possible to a former military pilot-tumed-dope-smuggler named Ad­ guns-for-drugs trafficking. ler Berriman ("Barry") Seal. When the Hasenfusplane was downed and Hasenfussur­ Evading drug interdiction vived the crash (several other crew members were killed), It was the worst-kept secret in Pennsylvania during the Corporate Air Services folded up its business and DeGaray era of Thornburgh's governorship(1 979-87) that Rik Luytjes disappeared from sight. In oneof the many lingering myster­ was a bigtime dope smuggler. At first,Luyt jes's efforts were ies of the Iran-Contrapro be, congressional investigators nev­ limited to specially modifying private airplanes with spare er questioned DeGaray, despite the fact that he had been fuel tanks and storage compartments at his Scranton Air subpoenaed and granted immunity. America compound. But by 1982, Luytjes was himself fer­ The senatorial campaign could offer an excellent oppor­ rying large shipments of cocaine from Colombia into the tunity to correct that "oversight."

58 National ElK July 5, 1991 specialists in combatting organized exploitation of children have stated that they believe Owen's testimony and similar, overlapping testimony by many other Nebraska children. Nebraska pedophile Some of these specialists have campaigned for the launching of a new, reinvigorated Franklin investigation. Dr. Judianne ends in coverup Densen-Gerber of New York, an expert on satanic abuse who trial interviewed Bonacci twice, has stated that he is a reliable eyewitness to crimes including satanic abuse and murder, by Alan R. Ogden and is a valuable resource in efforts to combat cults and child kidnapers . The barbarous conviction in Omaha June 21 of child sexual Dr. Densen-Gerber denounced the jailing of Bonacci and abuse victim Alisha Owen for perjuryin her statements about Owen, pointing out that never before had child abuse victims her abusers, and the sentencing earlier in the week of Franklin been charged for telling their story. Nebraska investigators Credit Union chief LarryKing , a key figurein the child abuse have said for years that the FBI covers for the pedophile ring, ring, to 15 years for embezzlement, mark a new stage in which involves wealthy and politically powerful people and efforts by the FBI and local prosecutorsto complete the circle has political ties stretching all the way to the nation's capital. of a coverup. The persecution of Owen conveys the message thatit is impossibleto stop organized child exploitation. The Discovery by the defense stopped cold King conviction was designed to divert attentionaway from Miss Owen was convicted on June 21, the day of the a larger criminal network. Through plea bargaining, King summer solstice, which satanists consider a high holiday. was maneuveredthrough his embezzlement trial without any Incredibly, on the same day, state prosecutor Gerald Moran, mention being made of the allegations that he ran a child who tried the cases against both Owen and Bonacci, an­ prostitution ring from Omaha to Washington, D.C. Then, nounced that he was dropping the perjurycase against Bonac­ althoughKing expecteda shortsenten ce, he was "sent up the ci, and that federal perjury charges against Owen were also river," to provide a cover for others. dropped. He explained this turnaroundas "in the interests of Take Harold Andersen, former Omaha World Herald justice," and pushed the line that all the evidence accumu­ publisher, for example. Andersen has been accused more lated in the two-year Franklin Committee investigation was than once of being a pedophile. In testimony presented to discredited by Owen's conviction. a committee of the Nebraska Senate in 1990, young Paul "The truth is out," Moran said. "It is evident that allega­ Bonacci, who had come forward with the story of his treat­ tions of sexual misconduct were a lie from startto finish." ment at the hands of the child abuse ring, termed Andersen In fact, the truth is not out. By dropping the charges "one of the sickest men I have ever been abused by," and against Bonacci, Moran rendered moot all the pending mo­ described sadistic burnings which he said Andersen per­ tions for orders for depositions which Bonacci's attorney formed on groups of boys. John DeCamp had been filing for six months. On Moran's cue, the judge in Bonacci's case continually stalled on every A fraudulent conviction motion DeCamp filed to subpoena witnesses and compel Owen, now 23, who had also named Andersen and other testimony. Terming Alisha Owen a "heroine," DeCamp said, prominent Omahans as abusers, was convicted of eight "We should be jumping for joy that they've dropped the counts of perjury after a four�week trial . Her sentencing is charges in Paul's case, except that we know they are doing scheduled for July 8, and she faces up to $200,000 in fines it to make sure that the truth , with nothing held back, never and 160years in prison. Andersen, in a statement published comes out." An appearance in court by Bonacci was feared in the World Herald, gloatingly termed this persecution of a by the pedophiles. DeCamp received a death threat-the young lady, who even the prosecution admits is an abuse latest of many-which said, "Now that Alisha is finished, victim, a "splendid example" of our system ofjusti ce. Ander­ you had better get out of Nebraska, or you and your family sen calls testimony about abuse of children "wreckage creat­ will be in the cemetery. " ed by liars and vicious rumor-mongers." Commenting on the Owen conviction, Omaha attorney Owen and Bonacci were indicted for perjuryby a grand Marc Delman, known for representing pornographers, jury when they refused to recant their testimony before the gushed to reporters, "The system really works." Delman and Senate committee investigating criminal involvement by other lawyers linked to the coverup are said to be preparing figures in the failed Franklin Credit Union. Lashing out at new lawsuits: against the company hired by the Senate to the committee chairman, Sen. Loran Schmit, Andersen investigate abuse allegations, against prison officials who termedthe commmittee "out of control." protected Owen from physical attack inja il, and others . The Not everyone agrees with Andersen, however. A whole message conveyed to children still victimized is clear:"Don 't array of child care workers, ministers, psychologists, and talk, or you'll end up like Alisha."

ElK July 5, 1991 National 59 Congressional Closeup by William Jones

Dems impose conditions in Pennsylvania. First Bradley claimed that the on China MFN status Federal authorities also sought in­ State Department had provided spe­ Senate Majority Leader George formation about honorariums paid to cial funds for medical and food aid. Mitchell (D-Me.) introduced on June other parties in Gray's name or as­ When the correspondent referred to 25 a Democratic proposal that would signed to other organizations, includ­ the comments by State Department renew Most Favored Nation (MFN) ing the Bright Hope Baptist Church Food Aid administrator Andrew Nat­ status for the People's Republic of in Philadelphia, where he serves as sios that they had $9 million available China only on condition that China minister. for aid which they were deliberately improve its human rights and trade Gray has expressed concern that withholding, Bradley complained that practices. The bill mandates termina­ the Justice Department may be selec­ "we should use these $9 million for tion of that status if the Chinese gov­ tively investigating blacks. It is esti­ the children of our own country who ernment exports ballistic missiles to mated that 47% of all black elected are in need, rather than for the children Syria, Iran, or Pakistan. officials inthe United States are facing of Iraq," The press conference was Although the proposal represents indictment. then quickly ended. a softening of the Democrats' stance "I try to think that we don't have on the issue of China MFN,even this this kind of problem in America that's modest proposal would undoubtedly racially motivated and that even our be met by a veto from President Bush, Justice Department is motivated based who has bent over backwards to ap­ on justice and not on race," Gray stat­ Burton leads attack pease the Chinese leadership. ed in submitting his resignation June against aid for India The Senate Finance Committee is 22. "But I've got to be kind of candid A resolution proposed by Rep. Dan scheduled to debate the Mitchell pro­ with you; I am becoming increasingly Burton (R-Ind.), which would have posal, along with a similar proposal concerned. " cut off 'half of the developmental aid by Sen. Alan Cranston (D-Calif.), on to India until the President reportedto June 27. Congress that the Indian government was no, longer preventing representa­ tives of Amnesty International and Dribbling Bill fouls out other human rights organizations from on lifting Iraq sanctions visiting India to "monitor" human Gray resigns as Sen. Bill Bradley (D-N.J.), one of the rights conditions, was defeated 271- FBI conducts probe two congressional guests at the anni­ 144 on June 19. Despite the seemingly The sudden resignation of House Ma­ versary celebration of the World Sum­ comfortable margin of defeat, in the jority Whip William H. Gray III (D­ mit for Children in Washington, D.C. wake of the Gulf war the attacks on Penn.) on June 21 to become the head at the end ofJune , made clear that his India are assuming serious dimen­ of the United Negro College Fund, concernfor the children of the world sions. was officially attributed to Gray's was limited to the children of the Unit­ The same day, ranting about al­ frustration with his job. At the same ed States (at least those whose parents leged outrages by the Indian govern­ time, it was revealed that despite deni­ can vote) . ment against the Punjab and Kashmir, als of Attorney General Richard At a press conference in conjunc­ Burton introduceda resolution calling Thornburghin April that Gray was the tion with the anniversary, Bradley for a plebiscite in Kashmir to deter­ subject of a Justice Department inves­ was asked by an EIR correspondent mine its future political status, a mea­ tigation, documents were subpoenaed whether he would work to eliminate sure which would have represented di­ by federal authorities subsequent to the State Department restrictions on rect interference in the internalaffairs the Thornburgh statement to review the shipments of food and medicine to pf India. The amendment would have payments Gray and his wife may have Iraq, and to lift the economic sanc­ eliminated assistance for certain hous­ received, according to sources cited tions on Iraq, so that Iraq could import ing prQgrams, for AIDS prevention by the Washington Times. the food and medicine it needs to alle­ and control in India, and other devel­ Thornburgh is resigning as Attor­ viate the suffering caused by the U. S . opmental projects. ney General to run for the U. S. Senate bombardment of that country. The aid cutoff was rejected, but an

60 National EIR July 5, 1991 amendment was added to the Foreign ley (D-Wash.) to launch a formal in­ ing the growing technological might Assistance Authorization Bill which vestigation. Foley called the questions of Japan and Germany. called on India to "take a series of ac­ concerningthe whereabouts of former The bills are intended, in the tions topromote adherenceto interna­ CIA chief William Casey in the sum­ words of Senator Bingaman, to "iden­ tionally recognized human rights stan­ mer of 1980, during which time the tify and continually reevaluate our dards." Such measures passed by the negotiations with the Iranians were technology priorities, and [as] a U.S. Congress serve to escalate the said to have taken place, "discon­ mechanism to manage efforts across political unrest in India following the certing and unresolved." Federal agencies to promote those pri­ assassination of Rajiv Gandhi. A House staff inquiry is under orities," to give "adequate supportfor way, and senior Democrats decided the research and development of these the week before Gore made his call, critical technologies," and for the to delay making a final decision for a commercializatiop and applications ouse votes to cut fullformal inquiry until after the start of those technologies. H of the confirmation hearings of Robert The bills would also, said Binga­ otTaid to Jordan Gates, Bush's nominee as CIA direc­ man, create "an enhanced capability The House voted overwhelmingly on tor. Gates, who served as Casey's to monitor and gain access to foreign June 19 to cut offall aid to Jordan for deputy, will face questions about any sources of technological advantage." fiscalyear 1992. An amendment to the knowledge he had regarding the Iran­ Calling for "a partnership between ForeignAssistance Authorization Bill Contra affair, arms sales to Iraq and federal agencies," the bills would which effectively penalizes Jordan for South Africa, and, possibly, the "Oc­ "link technology development with its refusal to join the U. S.-backed co­ tober Surprise." manufacturing .... U.S. industry, alition in the war against Iraq, pro­ long accustomed to a virtualmonopo­ posed by Rep. Dan Burton (R-IIid.), ly of world markets, ignored the criti­ was passed by a 410-4 vote. cal importance of manufacturing in a The amendment was amended by global economy. . . . We are now Rep. Randy Cunningham (R-Calif.) ems point to ruined paying a heavy price for that neglect. " to allow the allocation of aid if the D U.S. manufacturing base Under the program instituted by Presidentcertifies that such assistance A series of bills was introduced into one bill, a "National Manufacturing is "in the national interest." The aid the U.S. Senate on June 19-20, which Extension Program," the federal gov­ cutoff was in retaliation for Jordan's purports to be an attempt to redress ernment would provide matching attempts to mediate peace with Iraq. the rapid disintegration of U . S. manu­ funds for new and existing state, lo­ Burton accused Jordan's King Hus­ facturing industry. The four pieces of cal, and non-profit programs to help sein of "giving aid and comfort to Sad­ legislation, "The National Critical modernize small- and medium-sized .damHussein ." Technologies Act," "The Advanced manufacturing firms . The legislative Manufacturing Technology Act," package also calls for establishing "The Federal Technology Strategy new programs in manufacturing engi­ Act," and "The Defense Manufactur­ neering education at U . S. universities Pressure grows for probe ing Engineering Act," were worked and colleges. of 'October Surprise' out in collaboration by Sens. Ernest The senators' remarks indicated In a floorspeech on June 24, Sen. Al­ Hollings (D-S.C.), Sam Nunn (D­ that they were most concerned about bertGore (D-Tenn.) called for a for­ Ga.), Jeff Bingaman (D-N.M.), and the rise of Japan in the world markets. mal inquiry into charges that the Albert Gore (D-Tenn.). Sen. Kent Conrad (D-N.D.) noted Reagan-Bush campaign struck a deal The legislation points to the obvi­ that "in industry after industry, our with Iran to delay the release of 52 ous, although up until now generally competitors are on the move and we U.S. hostages until after the 1980 unadmitted, collapse of the U.S. man­ are not." Conrad added that it was in election, the so-called "October Sur­ ufacturingsector. The bills, undoubt­ the areas indicated in the bill as those prise." edly oriented toward servingas a basis of "economic vulnerability" that "the The Gore statements build up of a Democratic presidential cam­ United States must be more ag­ pressure on House Speaker Tom Fo- paign, are also oriented at undermin- gressive."

ElK July 5, 1991 National 61 NationalNews

close to people we believe were involved" cluding rights to collective bargaining, vo­ in the 1979 double murder in Norfolk, for cational training, health and safety which Giarratano was convicted. protection, and a minimum wage. The Bush Hospital sets up Last February , after Virginia Gov. L. administration and the Mexicangovernment Douglas Wilder granted Giarratano a condi­ "resistany such protection in the U.S. -Mex­ separate AIDS unit tional pardon three days before he was to be ico arrangdments," he said. The Illinois Masonic Medical Center clinic executed, Virginia Attorney General Mary Donahue pointed out that the "European has separated its AIDS treatment unit from Sue Terry refused to allow him a new trial . Communityhas a huge assistanceprogram­ its regular facilities, the June 19 Chicago Deans said that during private investiga­ the EuropeanRegional DevelopmentFund­ Sun Times reported. tions, two informants have linked another which will spend at least $68 billion over the The Adult Medical Treatment Center man to the murders . She said one informant next four years to narrow thegap betweenthe closed in May after a 15-month-old girl reported overhearing a conversation several richest regions, such as Germany, and the pulled an HIV -contaminated needle out of a years after the slayings between two men poorest regions, such as most of Portugal. waste container and pricked herself while bragging about a double murder in Norfolk. Thereare no such plans here ." her mother was being examined. It was one Recently, a second informant gave the name In a June 4 letter to U.S. Trade Repre­ of two incidents in which three people were of an individual cited by the first informant, sentative Carla Hills, Msgr. Robert Lynch, accidentally exposed to the AIDS virus in corroborating that informant's story. the general secretary of the U.S. Catholic the last two months. Gerald Zerkin, an attorney for Giarrata­ Conferenq:, the public policyagency of the The opening of a new outpatient unit for no, told EIR in February that the considera­ U.S. Catholic bishops, also urges that in the AIDS patients , called the Infectious Disease tions in his case were more political than NAFTA agreement, "questions of econom­ Sub SpecialtyClinic, was speededup afterthe legal. Referring to Terry's unwillingness to ic and social justice receive priority atten­ AIDS exposure incidents, which resulted in grant a new trial, Zerkin said, "Rather than tion." There must be "concern for the poor lawsuits, Dlinois Masonic President Gerald taking the position that the Attorney Gener­ in both lands . " W. Mungerson said, the paper reported. al's office remains a safety net" to "reduce Hospital "policy will be to refer else­ the risk of executing innocent persons-in­ where AIDS patients who do not wish to be stead, they seem to abide by the philosophy treated in the separate clinic, hospital offi­ that if we admit that it's possible for a mis­ cials said. But that could amount to discrim­ take to have been made , then that will under­ Trend toward lawmaking ination, said Debbie Gould, a member of the mine people's faith in the death penalty. " AIDS activist organization ACT UP . . . . by bal'ot referendums "Kathy Adler, a program director of the Reflecting.a national trend toward making AIDS Foundation of Chicago, a group of laws via ballot referendumsthat bypass leg­ hospitals and others who serve people with islatures, the New Jersey Senate began con­ AIDS , said the discrimination issue was Labor, Catholics keep sidering a constitutional amendment to per­ more a concern in the early stages of the mit citizeris to enact or repeal laws through AIDS 'epidemic,' when less was known up pressure vs. NAFTA ballot initiatives. about the disease. Now it is generally be­ The AFL-CIO has issued a statement de­ This has become a hot political issue due lieved separate treatment of AIDS patients nouncing the North American Free Trade to anger over Gov. Jim Florio's (D) $2.8 can be conducive to better, more specialized Agreement (NAFTA) which George Bush billion tax increase passed last year. While and comprehensive care , she said," the pa­ is negotiating with Mexico. It was printed many legislators are apprehensive over such per reported. in the union federation's Free Labor World mob democracy, which Florio correctly biweekly on May 31. points outl is "contrary to the principle of Tom Donahue, AFL-CIO secretary­ representative government," taxpayer ire is treasurer, declared that "we believe that the so intense that some sort ofamendment will substance of the U.S. administration's pro­ likely be proposedand enacted. New suspects in posal is harmful and ill conceived. We be­ lieve American workers would pay for it Giarratano case with their jobs. New leads in the case of Joseph Giarratano , "We hear about a market stretching from the Virginia prisoner who became interna­ the Yukon to Yucatan ....The poetry is Victim fightsfor AIDS tionally known as he spent years on death impressive, but the practicality is de­ row, were announced June 21 by Marie pressing," he said. testing, full disclosure Deans, executive director of the Virginia Donahue contrasted how Europeans are Kimberly Bergalis, one of fivepatients who Coalition on Jails and Prisons. Deans told working to establish a Social Charter to pro­ contracted AIDS from dentist Dr. David the media, "We are getting increasingly tect workers in the 1992 single market, in- Acer, blasted Florida health authorities in a

62 National EIR July 5, 1991 Brifdly

• NEIL BUSH, the President's son, has dropped his appeal of the administrative ' sanctions levied letter to Florida Health and Rehabilitation ed with ADL representatives seeking to en­ against him by the Office of Thrift Services investigator Nikku Economou list their support in a controversy over his Supervision for his actions while a April 6, which appeared in the June 20 Mi­ handling of previous LaRouche-related tri­ director of the now-defunct Silverado amiHerald. als. When Welsh requested full disclosure S&L, the June 19 Wall Street Journal Bergalis, now near death, has lobbied of his relationship to the ADL, Weckstein reported. for mandatory AIDS testing of health care selectively revealed one set of correspon­ workers and full disclosure of AIDS status dence, but withheld documents which ob­ • THE LOUISIANA legislature between doctors and patients . Florida au­ structed the defendant's ability to prove has enacted an anti-abortion law de­ thorities allowed her dentist to continue his bias. The full picture only emerged later, scribed as one of the strictest. Alex practiceknowing he had AIDS. during an evidentiary hearing on govern­ Sanger, grandson of Margaret Sang­ "Who do I blame? Do I blame myself? ment misconduct. er, the founder of Planned Parent­ I sure don't. I never used IV drugs, never The court will also hear Welsh's petition hood, the largest operator in the lu­ slept with anyone , and never had a blood seeking reversal of his conviction under crative abortion industry, whined to transfusion," she wrote . Kastigar v. United States . Welsh contends CBS News that "abortions are down "I blame Dr. Acer and every single one that a hearing held by Weckstein was consti­ about 6% from last year. " of you bastards, anyone who knew Dr. Acer tutionally insufficientto determine if immu­ was infected and had full-blown AIDS and nized testimony given in a prior proceeding, • GEORGE BUSH lashed out at stood by not doing a damn thing about it. " was improperly used by the prosecution. Newsweek magazine in mid-June. Acer's status was shielded by Florida "You're talking to the wimp," he law, and he claimed he was following stan­ said, after discussing the possibility dard infection control procedures. Ac­ of not running for office. "You're cording to AP, Acer never told his patients talking to theguy that had a cover of he hadAIDS until he releaseda posthumous a national magazine, that I'll never letter to them, advising them to seek testing. FBI hiding files forgive, [that] put that label on me." In Minnesota, it was also revealed that Dr. in LaRouche case Philip Benson, an obstetrician, has had • ECO-TERRORISTS from the AIDS since September 1990. He has been In answers to interrogatories in mid-June in Animal Liberation Front claimed treating patients, including carrying out in­ the 17-year old civil rights case LaRouche credit for a fire in an animal food and vasive procedures, without informing any et al. v. Webster, the FBI refused to answer processing building of the Northwest of his patients of his condition, and despite questions about the extent of its collaboration Farm Foods Cooperativenear Seattle an agreement with the state that he could with the Anti-Defamation League (ADL) on June 15, the second attack in the continue to practiceonly if he did not carry matters against Lyndon LaRouche and hisas­ Northwest in June. out invasive procedures. Now, 328 of his sociates, a central claim at issue in the suit. patients are being contacted and told that "Any information responsive to this in­ • ONE OF THE Gulf war's dan­ they may have been exposed to AIDS. terrogatory, if it exists, is contained in pend­ gerous aspects is that it has psycho­ ing criminal investigative files," the FBI re­ logically conditioned the U.S. popu­ fusal reads. lation to accept and/or to support Had the evidence of the influence ofthe wars against Third World nations, ADL been available to present to the jury Robert Jay Liftonof New York Uni­ Weckstein bias to be in LaRouche's federal trial in Alexandria, versity warned in a commentary in Virginia, the corruption of the government the June 20 London Guardian. reviewed by court could have been on trial rather than the de­ The Virginia Court of Appeals June 17 de­ fendant's "crimes" manufactured by the • A PLAN to ask Congress to allo­ cided to review a case alleging collusion government. cate $9 1 million to bolster vaccina­ between Roanoke Circuit Court JudgeClif­ The FBI also denied that there has been tion and immunization programs, ford Weckstein, who has presided over sev­ any investigation of LaRouche under Exec­ was deferredby George Bushjust one eraltrials of associates of presidential candi­ utive Order 12333 since Jan. I, 1989. The week after he announced the dis­ date Lyndon LaRouche, and top-level denial contradicts both an FBI affidavitfrom patching of teams to U.S. cities "to emissaries of the Anti-Defamation League a July 1989 Freedom of Information Act learn why kids aren't getting immu­ (ADL) . The court granted the petition, case brought by LaRouche associate Paul nized." The plan, which is being kept which argued that Weckstein should have Goldstein stating that such a fileexists , and secret, warns , that "immunization recused himself due to "an appearance of an FBI affidavit in this case in September programs across the country have in­ bias," in the case of RichardWelsh . 1989 acknowledging a E.O. 12333 file but adequate resources," the June 23 While presiding over Welsh's case in calling it a "repository for national security New York Times reported. May 1990, Weckstein covertly correspond- information. "

EIR July 5, 1991 National 63 Editorial

Development on the table internationally

There is clearly a fight going on throughout Europe­ institute for infrastructure . from the Atlantic to the Urals-{)n issues related to His proposal anticipates a combination of govern­ development, and , in particular, infrastructure devel­ ment and private capital investment. While, unlike the opment. On the one side, there is the London-Washing­ LaRouche proposal, he does not emphasize extension ton axis organized to impose Anglo-American hegemo­ of this network to EasternE�rope as a priority, .he does ny on the world; on the other, a far more tentative include these nations. The European commissioners grouping which is considering the implications of are reportedly studying a sirn.ilarplan . LaRouche's proposal for the "Productive Triangle," There are also signals from the Soviet Union. In and Pope John Paul II's critique of the immorality of a recent interview with the German newspaper Der liberalism. Sp iegel, Soviet Vice President Gennady Yanayev stat­ The recent series of events at which Schiller Insti­ ed that when Gorbachov goes to London , it will not be tute spokesmen have met with policymakers from the to ask for credits , but that he will be going there with a former Soviet domain, most recently events in Ukraine detailed program for development assistance. Yanayev and Slovakia, have directly pitted LaRouche's devel­ said of Gorbachov's trip: "He will submit proposals, opment-centered economics against the fascist austeri­ which will be as beneficial for the West as for us: ty measures being advocated by the Harvard crowd. namely, to invest in infrastructure , in completely de­ The example of Poland is sufficientproof for all patriots fined areas for the transport system, in energy-gas of the bankruptcy of free trade . It was not to see their and oil development . . . also in small and medium­ countries destroyed by a bankers ' dictatorship, that sized enterprises for the processing of agricultural pro­ these brave people fought against Soviet tyranny . duction." We can suppose that this interest in LaRouche's Another positive sign is the commitment in Germa­ economics has not been lost upon European policymak­ ny to include the development of magnetically levitated ing circles, nor Soviet circles, who are doubtful of the (maglev) trains in their new National InfrastructureDe­ direction of the Anglo-American grouping. If France velopment Plan, which will be debated at the end of this and Germany, for example , knuckle under on the ques­ year. German Research Minister Heinz Riesenhuber tion of farm subsidies in the continuing General Agree­ proposes a maglev trail from Bonn to Berlin. This will ment on Tariffs and Trade negotiations, this will have serve to integrate Berlin as the capital of Germany with disastrous repercussions for their economies. the administrative functions remaining in Bonn. On June 21, Umberto Agnelli, the number two man These plans are signs of an important realism enter­ in the Fiat industrial complex , who is also the president ing into economic thinking in Europe and the Soviet of the Round Table of the European Industrialists, ad­ Union; however, LaRouche's proposal for the "Pro­ dressed a conference of the construction industry held ductive Triangle" ·was specific on the crucial role to be in Rome . He called for the development of a "design played by the most industrially dense region of Eu­ of continental networks of infrastructure" which should rope--centered in Germany but extending into France, shape national projects. and Austria. These included transportation, telecommunica­ Time is of the essence. As the result of decades of tions , energy production, and research and develop­ deliberate misdeployment of world resources out of ment projects . He proposed the creation of a European infrastructural development, and away from develop­ agency for infrastructure able to take decisions at the ment of controlled thermonuclear power and the poten­ supranational level (like the European Commission) tials of space travel, tens of millions are unnecessarily and, because he agrees that this will not be possible threatened with death from wholly preventable so­ immediately, he called for the creation of a European called natural disasters such as water shortages.

National 64 ElK July 5, 1991 'From the prison in which the politician's career expires, the influence EIR Audio Report oj the statesman is ra ised toward the summits oj his life 's providential Your weekly antidote course, Since Solon, the Socratic method has become the mark oj the for New World ,Order 'news' great Western statesman, Without the reemergence oJ that leadership, our Exclusive news reports and interviews imperiled civilization will not survive Audio statements by Lyndon La Rouche this century 's waning years. ' -Lyndon H. LaRouche. Jr. Updates On : _ The Rea l Economy - Science and Technology - The Fight for Constitutional Law IN DEFENSE - The Right to Life - Food and Agricultu re COMMON SENSE - The Arts by Lyndon H. LaRouche, Jr. - The Living History' of the American Republic - Essential Reports from around the Available fo r $5 fr om: Globe Ben Franklin Booksellers S. St. $500 for 50 Issues 27 King Leesburg. Va. 22075 An hour-long audio cassette sent by first-class mail each week. Includes cover letter with contents. Telephone (703) 777-3661 Make checks 'payable to : Postage & Shipping U,S. Ma il: S1.50 + S.50 EIR News Service each additional book, p. o. Box 17390, Washington. D.C. 2004 1 -0390 ups: S3 + SI each Phone: (703) 777-945 1 Fax : (703) 771-9492 additional book,

------, I would like to subscribe to Executive Executive Intelligence Review for Inte�ence D 1 year D 6 months D 3 months

I enclose $,_____ check or money order

Review Please charge my D MasterCard D Visa

Card No. Exp. date ____ _ U8.t Canada and Mexico only Signature ______

1 year ...... ••...... • $396 Name ______6 months ...... $225

...... 3 months ...... $125 Company ______

Foreign Rat es Phone ( Central America . West Indies, Venezuela Address ______and Colombia: 1 yr. $450,. 6 mo. $245. 3 mo. $135 City ______

South Ame rica: I yr. $470. 6 mo. $255. State ______-'-'Z ip ___ _ 3 mo . $140. Make checks payable to EIR News Service Inc .. Europe. ltiddle East. Africa: 1 yr. DM 1400, P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. OM 750. 3 mo. DM 420. Payab le in 0390. 'In Europe: EIR Nachrichtenagentur deutschemarks or other European currencies. GmbH. Postfach 2308. Dotzheimerstrasse 166. 62 Wiesbaden. Federal Republic of Germany. AU otller countries: 1 yr. $490. 6 mo. telephone (06121) 8840. $265. 3 mo. $145

------� Can Europe Stop the Wo rld Depression?

EIR Special Report

The best oveIView to date of the LaRouche "The ruin of developing countries and the "Productive Triangle" proposal, which is becoming deepening economic depression in the English­ world-famous as the only serious solution to the speaking world make clear that the system of present worldwide economic breakdown. Adam Smith is no more capable than that of Karl Marx to provide a solution to the economic $100 misery of eastern Europe. "What is required is a 'grand design' of European policy, which not only masters the task of reconstruction but simultaneously Make check or �oney order payable to: contributes to world development and peace . Such a plan is Lyndon LaRouche's proposed �TIillNe",s Service 'Productive Triangle' program." P.O. Box-17390 Washington, D.C. 20041-0390 -from the Berlin Declaration, Mastercard and Visa accepted. March 4, 1991