... ATOTA STRATE INST PEKING by Gen.· Ten

f' tr IJAII we need do is to un , yomake the most of s weaknesses. Then we befeat. The Chinese like a paper ough. All the munism." . Teng Chieh

This amazin Kuomintang 1988, charted erupted just a

Exclusive U.S. di 1.50 postage and Ben Franklin book, $.50 for 27 South King St. al book). Virginia Leesburg, VA 220 4V2% 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 Papert, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, In Economics we present an eight-page special report which came Webster Tarpley, William Wertz, Carol White, Christopher White together as we were editing this issue, on the cru�l reality of Iraq Science and Technology: Carol White since "Desert Storm." The report leads with the formation of a Com­ Special Services: Richard Freeman mittee to Save the Children in Iraq, announced on May 15, and Book Editor: Katherine Notley Advertising Director: Marsha Freeman the text of the committee's appeal for immediate action to end the Circulation Manager: Cynthia Parsons sanctions and rescue the Iraqi people from extinqtion. I personally INTELLIGENCE DIRECTORS: urge each reader to support this effort in whatever way possible. Agriculture: Marcia Merry Asia: Linda de Hoyos The call is accompanied by two extraordinary first-hand reports Counterintelligence: Jeffrey Steinberg, on Iraq. If there were any lingering doubts about the genocidal Paul Goldstein Economics: Christopher White intentions of George Bush and his British sponsors in engineering European Economics: William Engdahl this war under United Nations auspices, they should be dispelled by lbero-America: Robyn Quijano, Dennis Small Medicine: John Grauerholz, M.D. these reports and photographs. What the eyewitness accounts prove Soviet Union and Eastern Europe: is the deliberate design of those who are still prosecuting the "war Rachel Douglas, Konstantin George Special Projects: Mark Burdman on Saddam Hussein" to carry out a slaughter of the innocents. To United States: Kathleen Klenetsky quote one of the authors, "One of the great myths of this war was INTERNATIONAL BUREAUS: that food and medicine would continue to be allowed into Iraq. From Bangkok: Pakdee Tanapura, Sophie Tanapura Bogota: Jose Restrepo August to March, no food whatsoever was permitted to enter Iraq Bonn: George Gregory, Rainer Apel Copenhagen: Poul Rasmussen (from any source) according to the provisions of Sanctions Resolu­ Houston: Harley Schlanger tions 661 and 666. " Lima: Sara Madueno Mexico City: Hugo Lopez Ochoa On May 21, we were horrified to learn that the former prime Milan: Leonardo Servadio minister of India, Rajiv Gandhi, had been assassinated. His death, New Delhi: Susan Maitra Paris: Christine Bierre as we report in International, must be laid at the door of those same Rio de Janeiro: Silvia Palacios genocidal Anglo-American elites who concocted "Desert Storm." Rome: Stefania Sacchi Stockholm: Michael Ericson The cover photo highlights an example of the strong grassroots Washington, D.C.: William Jones resistance to Auschwitz policies, being mobilized by presidential Wiesbaden: Garan Haglund candidate Lyndon LaRouche and his collaborators: A truck, adorned EIRIExecutive Intelligence Review (ISSN 0273-6314) is with a large image of a magnetically levitated train and the banner, published weekly (50 issues) except for the jirst week of April, and the last week of December by EIR News "Build Maglev/No 'Free Trade' Slavery! U.S. Needs LaRouche Service Inc., 1430 K Street, NW, Suite 901, Washington, DC 20005 (202) 628-0029 Economics," crossed the state of Pennsylvania along the route of a European Headquarters: Executive Intelligence Review proposed high-speed maglev rail line. Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal There is no reason for NAFTA, except to bailout the big money­ Republic of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, center bankers who have George Bush in their pocket. The Feature Michael Liebig In Denmark: EIR, Post Box 2613, 2100 Copenhagen 0E, outlines the lethal effect "free trade" will have on the already mori­ Tel. 35-43 60 40 bund U. S. economy. In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. Science & Technology offers one crucial example of how eco­ Japan subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, nomic problems can actually be solved-through leaps in technolo­ Tokyo 160. Tel: (03) 208-7821. gy, especially to more energy-dense forms of energy production: Copyright © 1991 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly namel y, fusion power. prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-$iO

Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIillContents

Interviews Science & Technology Economics

10 Lennart Skov-Hansen 20 Cold fusion generators 4 Brazilian minister: Save The deputy general of possible in five years Iiv� before paying debt Danchurchaid, the relief Physicists Frederick Mayer and Dr. Alceni Guerra blames the organization of the Danish State John Reitz have a new idea about International Monetary Fund's Church, who recently visited Iraq, what makes the controversial "cold austerity policies for the current says the country has to be put back fusion" experiments work. Their health disaster facing the continent. on its feet economically, or many Boston press conference will no more will die. doubt infuriatethose who have been 6 Group seeks to save the determined to label cold fusion a children of Iraq scientific chimera-or a fraud. Documentation: The "Plan of Departments Action" released by the Committee to Save the Children in Iraq at a 27 Books Received Bonn press conference.

S6 Report from Bonn 10 Sanctions must be lifted to Germans squeezed by two stop further loss of life in superpowers. Iraq An interview with Lennart Skov­ S7 Australia Dossier HanSen. A glimpse of Australian powerbrokers. 12 Currency Rates

S8 Dateline Mexico 13 When push comes to shove: The case of the Negroponte cable. Is the United Nations savior or spoiler when it comes to S9 Report from Panama humanitarian aid for Iraq? The Noriega papers. by Eric Hoskins, M.D., Medical Coordinator, Gulf Peace Team. 72 Editorial Is Bush planning a new war? 16 Clash over type of investments in China

17 Agriculture United States imports Swedish barley.

18 Business Briefs Volume 18, Number 21, May31, 1991

Feature International National

40 British 'new world order' 62 House capitulates to fast behind R�iv Gandhi track, but fight expands slaying Democratic presidential candidate The "crime" of the Indian Lyndon LaRouche is spearheading subcontinent, in the Anglo­ the resistance to NAFTA by North American oligarchy's book, is its Americans unwilling to accept the failure to become depopulated. destruction of their jobs, standard of living, and their future. � � 42 'Assassination of Gandhi is LaRouche spokesman Phil Valenti talks to the press a crime against humanity' 64 Queen Elizabeth visit alongside the "maglev mobile" driven across Pennsyl­ A statement by Lyndon H. celebrates Anglo-American vania to the capital in Harrishurg. about the alternative LaRouche, Jr. imperial alliance to NAFfA. Documentation: The Queen's speech to a joint session of the U.S. 28 'Free trade': worst threat 43 Brazilians challenge U.S.­ Congress. to U.S.A. since backed genocide Confederacy 66 U.S. markets being ftooded The Confederate States made it 44 Danger of war intensifies illegal to protect domestic industry through the Balkan with heroin and to foster national peninsula improvements. Today, the North Not the internal troubles alone, but 67 Nebraska courts still shield American Free Trade Agreement outside, deliberately evil pedophile ring will wreck what remains of U.S. manipulation could drive industry, driving down wages to Yugoslavia into civil war. 68 Congressioaal Closeup slave-labor levels, and turning Mexico into one big maquiladora. 46 French military strategy 70 National News The conclusions of a survey by returns to gunboat EIR's Economics Staff. diplomacy aimed at South

48 Military crisis builds in Argentina

50 Chinese unity debated in Hong Kong Webster Tarpley reports on a most unusual search for a national dialogue, between people from mainland China, Hong Kong, Taiwan, and friends of China from abroad.

54 Sino-Soviet summit: troubled giants embrace

55 Frankfurt drug lobby hollers against ADC

60 International Intelligence • �ITrnEconoIDics

Brazilianminister: Save lives before payingdebt by Silvia Palacios

During the 44th General Assembly of the World Health Orga­ billion, as Guerranoted, and yet here the foreign debt jumped nization (WHO), held in Geneva in the first week of May, from $71 billion to $111 billion between 1980 and 1989. Dr. Alceni Guerra, the health minister of Brazil, blamed the This looting through the foreign debt mechanism meant that International Monetary Fund for the current disaster facing Ibero-America, and Brazil in ;particular, did not invest the the continent's health and sanitation systems. He stated that necessary resources in maintaining thehealth and other vital such international institutions as the IMF had made lbero­ infrastructure for the survival of the population. America a "sick continent," facing an imminent threat of In Brazil, for example, in terms of sanitation, the current losing millions of people to the cholera pandemic now sweep­ precarious systems are the result of investments made in the ing the region. Health conditions cannot be ignored when decade of the 1970s. The National Sanitation Plan, which developing nations renegotiate their debt conditions, the Bra­ was drawn up in the mid-1970s when Brazil launched its zilian minister asserted. "Life cannot take second place." great infrastructure projects, had as a goal to provide 80% of Emphasizing that he had the backing of Brazilian Presi­ the Brazilian municipalities with garbage collection, sewer­ dent Fernando Collor de Mello, Minister Guerra proposed a age, and potable water services. specific,urgent measure to combat cholera and other epidem­ But during the most recent decade, Brazil docilely paid ics: Divert part of the foreign debt payments into sanitation its debt and stopped all investment. Thus, basic sanitation infrastructure projects. He presented data to document the investment dropped to an annual level of $80 million, an cruelty stemming from the usurious foreign debt. South almost insignificant amount; experts consider an optimal av­ America, he explained, has a foreign debt of about $500 erage investment to be about $3 billion per year. billion. And Brazil, which is the continent's largest debtor and owed over $11 0 billion of this amount, paid out $85 Cholera, the IMF's epidemic billion in interest over the course of the 1980s. If 20% of this In 1974, EIR Founding Editor Lyndon H. LaRouche fore­ had been invested in health, Dr. Guerra argued, the country cast that, if the zero growth policies of the World Bank and would be in a much better situation to deal with the cholera the draconian austerity of the IMF continued to be applied in crisis facing it. the Third World, there would necessarily be a resurgence of The fact is that the decade of 1980-90 were the years of pandemics which humanity had earlier controlled, and that the worst looting in all of Ibero-America's history, as can be these would possibly be accompanied by new types of dis­ seen in the Figures 1 and 2. Ibero-America as a whole paid eases, new "Black Deaths" engendered by the bankers' $313 billion in interest payments over the decade, and yet its boundless usury. Unfortunately, that forecast is being ful­ foreign debt rose during this period from $243 billion to $439 filled. billion. In the case of Brazil, the country paid out about $85 Then in 1982, LaRouche provided a solution to this prob-

4 Economics EIR May 31, 1991 •

FIGURE 1 FIGURE 2 lbero-America paid, and the debt kept growing Brazil paid, and the debt kept growing (billions of U.S. $) (billions of U.S. $)

$500 $140 450 -- 120 c--- � - f--- f--- f--- r-- 400 - - - -- 1--- - I---- 350 I-- t-- t-- f--- t-- r-- 100 ------f--- --_=__ f--- f--- r-- I-- '-- '-- - 300 80 t--- f- t------250 ------60 I-- t--- I--:: 200 r-- t-- -- - � t------150 t-- t-- t-- 40 f-- - - 100 f---- f-- f--- - r- r--- - 20 50 t-- ... o �- o .J ei 80 81 82 �83 84 85 86 87 88 89 90 80 81 82 j83 84 85 86 87 88 89 _ Cumulative interest _ Cumulative interest , D Total debt o Total debt

Source:World Bank. Source:World Bank.

lem, proposing that Third World nations use the "debt bomb" urn. On May 18, the latest study was released by the Brazilian to protect themselves from the destruction wrought by the Institute of Geography and Statistics (lBGE), which shows usury of the international financial institutions. an almost unimaginable sanitation vulnerability in Brazil. So, today, in order to deal with cholera, and in Brazil's More than 100 million Brazilians residing in urban areas­ case also with the dramatic, exponential growth of AIDS that is 66% of the population-lack clean water, sewerage, cases (medical authorities estimate the number of cases at and garbage collection services. This lack of basic sanitation 300,(00), the first step is to declare a total moratorium on is already the principal cause of the $00,000 cases per year the foreign debt, before the continent is killed off by disease of malaria, the 5,000 cases of Chagas' disease, and of the and starvation. more than 40 million Brazilians infected with schistosomia­ According to conservative estimates of the WHO, Brazil sis. Out of 4,425 Brazilian municipalities, less than half will face about 3 millioncases of cholera. On May 14, Brazil­ (47.28%) have a sewage system; onl}'l239(5. 4%) have treat­ ian Health Ministry official Percy Soares, in announcing a ment facilities for sewage; and only 51 cities in the country special program to combat cholera with resources on the (1% of the total) have their own treatJ;nentfacilities. order of $3 billion, recognized that Brazil has sanitation con­ It is in the North, the "Africanized" area of the country, ditions which are worse than those of poorer countries, such where the greatest lack of basic sanitation is to be found. Of as Costa Rica or Sri Lanka. 298 municipalities, only 24 have a network of septic tanks. The cholera epidemic is taking two routes into Brazil, In other areas, such as in the AllUl2lon capital of Manaus, pincers-style. One is through Peru, directly into the Amazon which is feared to become the epicenterof cholera contagion region, which is the area of the country almost totally lacking in the country, the situation is no better. The city of one and in any sanitation services, from where it will jump to the big a half million people has sewerage for less than 4% of the cities where the the immensefavelas, or slum areas, will be population, and only 7% have potable water in their homes. a tremendous breeding ground for the disease. The second Contrary to the lies of the bankers; and their mouthpieces, route is through Bolivia. the cholera' contagion is far from under control in lbero­ Taking both routes into account, a total of 12 cases of America. In fact, new countries continue to be added to cholera have been reported. The newest was found in the capital the victim list. In Venezuela, for example, three probable of the state of Sao Paulo, the industrial heartof Them-America. cholera cases were just discovered along the border with ''The outskirts of the cities of Sao Paulo, Rio de Janeiro, Ma­ Brazil. The arrival of the cholera bacillus is also considered naus, Salvador, and Recife, constitute a truered zone of cholera inevitable in Central America, according to a task force of threat. Ifcontamination occurs in those critical centers, we will specialists who met in Costa Rica May 16. Said Raul Penna, lose control of the disease," National Secretary of Sanitation a representative of the Pan-American Health Organization Walter Annichino declared on April 20. for Central America, "although we cannot say that the arrival Almost half of Brazil is vulnerable to the cholera bacteri- of cholera in the region is imminent, we know that it is

EIR May 31, 1991 Economics 5 unavoidable." At least 600,000 cases of cholera of a total Central American population of 30 million areexpected over Special Report the next few years. In Peru, the number of cholera cases has now surpassed 182,000, while in Ecuador, health officials are admitting to nearly 11,000 cases in that country. Colombia, too, is acknowledging more than 800, while Chile is struggling to keep several outbreaks there frombecoming epidemic.

Banks' policy amounts to infanticide Minister Guerra's presentation in Geneva reached a high Group seekst o s.ave point, when he denounced the infanticide that is resulting from imposition of the bankers' brutal austerity terms for the children of Iraq paying the foreign debt. In Brazil, he said, 350;000children are dying each year, "four times the number of deaths that Almost three months since the official close of hostilities resulted from the bombing of Hiroshima." It is as if "three against Iraq, the scale of the devastation wrought on the airplanes filled with children were crashing every day of the country and its people�specially its children-is beginning year in Brazil," he added. The leading cause of infant deaths to emerge in the public view. The picture, as presented by in Brazil is diarrheal illnesses, caused-as with cholera-by members of the newly formed Committee to Save the Chil­ a lack of basic sanitation. dren in Iraq at a press conference in Bonn on May 15, is one The murder of babies in Brazil and throughout the Third which strikes horror in the hearts of moral men and women. World, is the cold, hard truth that lies behind the perverse In her remarks concluding the Bonn press conference, face of bankers' usury. The explosive imagery used by Minis­ Helga Zepp-LaRouche, chairwoman of the Schiller Institute, ter Guerra has enraged the nea-liberal fanatics, who accused addressed what the real target of"Desert-Storm" was: "It was the minister of being "grotesque," and demanded his head. precision bombing, to be sure, but not to spare ·the civilian A May 9 editorial in the daily 0 Estado de SiioPaulo, entitled population, rather to apply the i'bomb now, die later' princi­ "The Limits of Stupidity," warned that the bold truths stated ple. The aim of the war was no� Saddam Hussein or Kuwait, by the health minister in Geneva could ruin ongoing negotia­ but the destruction of Iraq as a developing sector land that tions with Brazil's creditor banks. President Collor had better was on the verge of taking off." The Schiller Institute initiated make up his mind, the editorial demanded: "The bankers the call for the formation of tile committee (see Documen­ and foreign investors have a right to ask whose mentality tation). predominates in Brazil-the President's or his minister's?" Not only Iraq, but the whole developing sector is target­ A new book just published by the Danish section of UN1- ed, said Mrs. Zepp-LaRouche" pointing to the 120 million CEF, Danish Save the Children Foundation, offers timely people in Latin America threatened by cholera, 5 million confirmationof the infanticide committed by the Internation­ homeless in Bangladesh, the 27 million people in Africa, all al Monetary Fund. The book, Lost Generations-A Debate suffering, not from "natural catastrophes," but from "the about Children and the Debt Crisis, identifiedthe high inter­ result of policies developed in the 1970s to reduce thepopula­ est rates imposed by then U.S. Federal Reserve Chairman tion of the developing sector." She quoted statements made Paul Volcker in 1979, the 1982 debt crisis, and the "free the week before at a Conservative Party gathering in Britain market religion" exemplified by George Bush's Enterprise by Sir Nicholas Fairbairns, to the effect that food aid should for the Americas Initiative, as the principal causes of misery not be sent to storm-ravaged Bangladesh, because it would in the world today. allow them to only "breed more people." This attitude, she "Every week, year round, 273,000 children die in the said, betrays the same kind of thinking behind Hitler's view Third World fromdiseases that do not harm our own children. of people as useless eaters; today, there are those who think That adds up to 14 million children every year who do not die secretly that it is better to let masses of people in the devel­ fromthe catastrophic famines, the floods,the earthquakes, or oping sector die. the other natural disasters we areentertained with on the TV Only three days after the Bonn press conference, another news or at humanitarian rock concerts. All 14 million die member organization of the committee was able to announce quietly. Killed by the rich world's lack of will to help. . . . that former U.N. High Commissioner for Refugees Prince Throughout the '90s, it would take $2.5 billion a year to save Sadruddin Aga Khan will ensurethat the U.N. pays for trans­ the lives of most of these 14 million." This $2.5 billion port and delivery of goods collected by the Letter of James­ "amounts to 6% of what the underdeveloped countries send Food for Peace in Sweden artd the Chaldean Patriarch in to the industrialized countries in interest payments on their London. The committee itself intends to oversee each and foreign debt to the West. " every shipment.

6 Economics EIR May 31, 1991 A May 18 press release from the International Progress as the temperature rises-soon to reach up to 120"F in some Organization announced: parts of the country-and even basic information about their "Austrian President Dr. Kurt W aldheim yesterday con­ location and spread is impossible to communicate, due to the tacted the Executive Delegate of the United Nations for the lack of telephones, radios, and television links. Already, Humanitarian Program in Iraq, Prince Sadruddin Aga Khan, 90% of deaths among children are due to diarrhea, contracted so as to facilitate the transportation of hospital equipment and through contaminated water. emergency food supplies that has been donated by several The conditions in which Iraqi refugees in southern Iran humanitarian organizations in the United Kingdom, Sweden, are forced to live, with 22 people ip rooms three by four Germany and other European countries. Thanks to this initia­ meters , without sanitation, are also breeding grounds for tive, transportation and delivery is now being assured within epidemic diseases, as Dr. A.-Hassan Halboos, president of the frameworkof the United Nations Emergency Program in the Association of Arab Doctors, reported from his recent Iraq. trip there. ''The President of the International Progress Organiza­ While Iraqis are being put slowly to death by torture, the tion, Prof. Dr. Hans Koechler earlier this week had briefed United Nations sanctions blocking vital food and medicine President Waldheim in Vienna on the humanitarian situation are still in force. "This is an embargo against 18 million in Iraq. He informed the Austrian head of state on the joint Iraqis," in the words of Father Philip Najim, secretary gener­ initiative of the Committee to Save the Children in Iraq, al to His Excellency, Patriarch Raphael Bidawid. ''The popu­ which was established by several non-governmental organi­ lation is innocent, and has nothing to do with this situation." zations in order to co-ordinate humanitarian projects. Yet, he said, "the bombardments destroyed everything, the "The Committee held an international press conference economy, the infrastructure, even the culture. They bombed in Bonn on May 15 where Dr. Margit Fakhoury, representa­ mosques, churches, convents, monuments," he said. "Now, tive of the International Progress Organization, gave infor­ it's finished. Our question is: Why is the embargo still on? mation on the difficult situation in Iraqi hospitals resulting In order to create more suffering? What about the children?" fromthe lack of medicine and medical equipment. The Iraqi healthminister had told Father Najim in Geneva "Among the members of the Committee are H.E. Rapha­ in early May that "whatever Iraqreceives now" in humanitar­ el Bidawid, Patriarch of the Chaldeans, Dr. Reza Sabri­ ian aid "is enough for 10 provinces for six hours." He ex­ Tabrizi (Edinburgh), and Prof. Dr. Hans Koechler, president plained that prior to Aug. 2, 1990, kaq spent a half-billion of the International Progress Organization, an organization dollars a year to import medical supplies. Since Aug. 2, it has in consultative status with the United Nations." not been able to purchase any. The minister was in Geneva for medicines, but was unable to organi:a;e purchases because of War against innocents detailed the sanctions, and has forwarded the Jist of required items to The Iraqi people were first weakened by a five-month­ the Committee to Save the Children in Iraq. long embargo, then,subjected to 40 days and 40 nights of Iraqi Trade Minister Mehdi Salih has asked that the $1 relentless bombardments; those who survived have been suf­ billion in frozen Iraqi assets be freed, so that the country fering ever since from the after-effects of the surgical bomb­ can buy food, including 1.5 billion tons of wheat already ing and the continuing embargo. contracted fromAustralia and Canada. Salih, who threatened Whereas talk is rife of plans for rebuilding Kuwait, with to bring the case before the U.N. Human Rights Commis­ British and U.S. firms scrambling over lucrative contracts, sion, said Britain was deliberately blocking the funds, in an almost no one is addressing Iraqi reconstruction. Indeed, the attempt to starve the Iraqi people and thus force Saddam policy toward this battered country, on the part of those Hussein out of.offi ce. who have isolated it and destroyed it, continues to be total "The United States and Europe are supposed to be de­ annihilation. fenders of human rights, but they are destroying human rights The war's genocidal effects were described at the Bonn in Iraq," Father Najim said. "Here we have to put our hopes press conference by pediatrician Dr. MargitFakhoury , who and principles together to save this ,society in Iraq. Saving worked for years at the Baghdad Children's Hospital. With this civilization is a humanitarian act." He appealed to the water, electricity, and communications destroyed, she said, press and others present to "say it everywhere, say 'stop the doctors "would like to help patients, but have their hands embargo' and give Iraqis their right to begin a new life, to tied, since the medications and required medical equipment live a normal life in their own country, to produce and use are lacking." This means that diabetic children die from lack their own goods." Mrs . Zepp-LaRo1ilche also pointed to the of insulin; infants with bronchial ailments die for lack of moral responsibility Europe shares for having financed the oxygen; only emergency operations can be performed, and Gulf war: "Humanity will emerge from this crisis, only if scalpels are used and reused. Most of the illnesses afflicting Europe overcomes moral indifference, and participates in the children are caused by acute undernourishment, a result of reconstruction of Iraq; for this, the ¢mbargo must be lifted. the sanctions. The danger of spreading epidemics increases Save the children of Iraq!"

EIR May 31, 1991 Economics 7 1) Approximately 3.9 million tons of staple foods are Documentation required over the course of the coming year, in order to close the gap between 750/1 ,000 calories a day, to 2,500 calories a day on average. The emphasis must be on items that do not need refrigeration as that is no longer possible due to the bombing. Food items most needed are rice, tea, coffee, flour, powdered milk, canned meat (not pork) and canned vegeta­ bles. Approximately 21,900 tons of dried milk powder are Plan of action required over the coming year to provide for infants. Medicines urgently required include those to regulate What fo llows is the text of the "Plan of Action" released by blood pressure and cardiotonicS; anesthetics (for local anes­ the Committee to Save the Children in Iraq at its Bonn press thesia as well as for surgery), disinfectants (to purify water, conference May 15. to wash vegetables, to disinfedt wounds, for hospital use); insulin for diabetics; antibiotics of a wide variety; and throw­ The Committee to Save the Children in Iraq has been founded away syringes. as a non-partisan coalition of doctors , intellectuals, leaders 2) Hospital equipment is required to set up functional in the religious community, human rights and right-to-life operating rooms. Electric generators, not less than 10 KW, activists, politicians, relief workers , prominent citizens, are urgently needed, as well as material to repair existing trade unionists, farmers , and all those who cherish the sacred­ generators. Generators are now being moved about in cities ness of human life. We have come together out of a shared and from village to village, because of their scarcity; massive concern that, unless immediate steps are taken, a tragedy of amounts are required, as refrigerators can run only a few apocalyptic proportions will play itself out in Iraq, annihilat­ hours and freezers, not at all. Emergency power equipment, ing an entire population. Especially threatened are the chil­ fuel to run it, and chemicals for water treatment must be dren of Iraq, who represent the country's future. We are provided. While the U.N. estimates needs at 40 liters per committed to mobilizing public opinion and responsible gov­ person per day, we believe that: 150 liters per person per day ernmentand internationalbodies to act on three levels to stop must be brought on as soon as �ssible. Before the war,the genocide in Iraq: 1) immediate relief, through shipments population was getting 450 liters per day on average. 150 of food, medicines and other emergency items, particularly liters is the minimum given the special demands created by required for children; 2) equipment, such as generators and the present sharp increase in diarrheal diseases. To get to 150 hospital equipment, to start activity needed to save lives; 3) liters a day in Baghdad, 6,750 tons of fuel will be needed to reconstruction of basic infrastructure. run water purification facilities, plus 16 tons of chlorine, and Reports from the United Nations, the Physicians for Hu­ 5,600 tons of alum. For sewage treatment, 3,300 tons of man Rights, the International Red Cross, the Gulf Peace diesel fuel would be needed to operate sewage treatment Team, and scores of others document the devastation caused equipment, in addition to 16 m�re generators for emergency by over 120,000 U.S . -led air strikes against Iraq's infrastruc­ use. Vehicles of all types are needed, especially ambulances, ture. The precision bombing methods utilized succeeded in jeeps, bulldozers, dump trucks and spare parts likebatterie s, paralyzing the nervous system of the entire country, destroy­ tires. ing communications, transportation, basic utilities such as 3) Basic infrastructure for gathering and stocking food electricity and water, as well as homes, schools, factories, must be provided, in order that the wheat crop sown last fall farms, distribution outlets and places of worship. The "near­ be harvested. Seed stocks must be replenished by October apocalyptic results" of which United Nations emissary Marti 1991, that enough fruits and vegetables may be planted. To Ahtisaari spoke following his March 10-18 tour of Iraq, are rebuild Iraq's infrastructure, a major effortinvolving govern­ visible in reported cases of cholera, typhoid, and other epi­ ments must mobilize civilian, engineering corps to build demic diseases. Most endangered are the elderly and chil­ bridges across the Tigris and Euphrates and restore transport dren. According to a more recent UNICEF report 5 million capabilities. A Gulf Peace Team report (April 17) emphasiz­ children in the region as a whole are threatened by death due es the importance of regenerating the Iraqi distribution sys­ to food and water shortages, and disease. As oflate February, tem, in cooperation with the Iraqi government,so as to ensure the calories available to Iraqis averaged between 750 and that all relief efforts reach the 'people in need. Emergency 1,000 a day-less than what a 5-year-old child needs. measures must also be taken to provide at least 25% of the pre-war civilian fuel consumption. Beyond the emergency Immediate needs phase of restoration of basic infrastructure, a vast project for Individuals and organizations working with the Commit­ infrastructure development in the entire Gulf and Mideast tee have identifiedthe following needs, corresponding to the region, through cooperative governmental efforts, is re­ three levels of intervention mentioned above. quired.

8 Economics EIR May 31, 1991 Lifting the sanctions Peace, Sweden, which collects food ,Clothing, and medicine. The first step toward implementing this emergency pro­ • International Progress Organization, Vienna, which orga­ gram must be to mobilize the political will to make available nizes transportation of food and medicines to children in Iraq, the necessary resources. The precondition for averting geno­ via Amman .• Middle East Action Network, Vienna, which cide in Iraq is the lifting of the U.N. embargo against the organizes transportation of food and medicines to Iraq, via country, to allow it to sell its oil and therefore be able to Amman. It is currently rebuilding and re-equipping a hospital purchase necessary goods for the population. A country in Kerbala .• Patriarchate of Baghdad, which coordinates which was dependent on imports for 70% of its food before distribution of food and medical supplies. the warcannot survive the embargo. Indeed, more deaths are The activities of the Committee are supported by the expected through famine and epidemics in the wake of the following (affiliation for identification purposes only): Dr. war than during hostilities themselves. As the cited Gulf Beatrice Boctor, Psychiatrist, Cambridge, England; Keith Peace Team report moots, "One is led to conclude that the Bovey, Solicitor, Edinburgh, Scotland; Msgr. Robert Calla­ continuation of the sanctions serves more insidious purposes, han, STL, JCL-U.S. Catholic Relief Mission; Dr. Janet such as driving the Iraqi people to despair and, ultimately, Cameron, formerly Gulf Peace Team, Ayrshire, Scotland; rebellion." Among others demanding the liftingof the embar­ Alan Clayton, Schoolteacher, Glasgow, Scotland; Dr. An­ go were the representatives of the Christian churches in Iraq, drew Dobson, Keele University, Lecturer in Politics; Mary in their meeting with Pope John Paul II in the Vatican May Catherine Donnelly, Regent, Catholic Daughters of 5. His Holiness indicated he would act through international America; Prof. M. Dummett, New College, Oxford; Dr. channels to remove the embargo, according to press reports. James Elgorn, The Flying Physicians, U.S .A.; Sr. Rosa Es­ Secondly, governments must be forced to mobilize a large­ posito, Daughters of Charity of St. Vincent de Paul; Sammer scale relief and reconstruction effort, in cooperation with the Ghouleh, Union of Palestinian-American Women; Toby Iraqi authorities and other cooperating governments in the John Grainger, London; Dr. Ahmed Hakim, Arab-American region. Finally, the Bush administration policy of "retribu­ Physicians Association; David Hargreaves, Editor, Surrey, tion" and technological apartheid (denying life-saving tech­ England; Donald Lowry, Primary S�hool Principal, Dublin, nology to the Third World) must be stopped. The worldwide Ireland; Adelgunde Mertensacker, Bundesvorsitzende, mobilization to defeat famine and disease, starting with the Christliche Mitte Deutschland; John Morrison, District Man­ dire state of Iraq, can not only solve that problem, but provide ager, Edinburgh, Scotland; A.C. Robb, Catholic writer, the impetus for reversing the immoral IMF economic policies Dundee, Scotland; Prof. Hermann Schneider; Nancy Span­ of the last 20 years. naus, Club of Life, U.S.A. Joyce Turner, Save the Children, The Committee to Save the Children in Iraq has been Philadelphia; Herr Wiirmeling, General Secretary, Union der brought into being by the following individuals (affiliation Nationen EuropiiischerChristen , Paris. for identification purposes only): Rev. James Bevel, U.S. civil rights leader; His Beatitude Patriarch Raphael I. Bidaw­ x------id, Patriarch of the Chaldean Church, Baghdad; Amelia Clip and send the following to: Boynton Robinson, U.S. civil rights leader, author; Jacques Muriel Mirak-Weissbach, Cheminade, Schiller Institute, Paris; Jutta Dinkermann, Club Committee to Save the ChUdren in Iraq, of Life, Germany; Dr. A. Hassan-Halboos, M.D., Haan, c/o Schiller-Institut Germany; Katharine Kanter, journalist, Germany; Muriel Vereinigung fUr Staatskunst e.V., Postfach Mirak-Weissbach, author, Germany; Richard Nikodaim, 121380. W-3014 Laatzen 2, Germany. Berlin; Fiorella Operto, Schiller Institute, Rome; Dr. Reza o I supportthe Committee to Save the Chndren Sabri-Tabrizi, Edinburgh, Scotland; Ulf Sandmark, Anti­ in Iraq. Drug Coalition, Stockholm; Helga Zepp-LaRouche, Schiller o Please inform. me of how t can help Institute, Germany. concretely. People working with the Committee include: Irrngard Ehrenberger, Middle East Action Network, Vienna; Prof. Name ______

Dr. Hans Koechler, International Progress Organization, Telephone ______� ______

Vienna. Address ______The Committee to Save the Children in Iraq collaborates with relief organizations and private groups dedicated to col­ Zip code. CityState lecting needed goods, and organizations and groups which Country______transport and deliver them. The Committee serves as a coor­ Myorganization ______dinating link between the two. While open to collaboration with all such oriented organizations, the Committee currently can do the following: _____�------works through the following: • Letter of James-Food for

EIR May 31, 1991 Economics 9 Interview: Lennart Skov-Hansen

Sanctions must be lifted to stop further loss of life in Iraq

Lennart Skov-Hansen is the deputy general secretary of takes a lot of those missiles to destroy concrete buildings, and Danchurchaid, the relief organization of the Danish State that was what they had done very thoroughly and effectively. Church. He was interviewed in Copenhagen on May 17 by They had cut the nervous syste$l of the city, and paralyzed Poul Rasmussen. it in a way that affected people living a big city much harder than if they were living in thecO\Jntryside or in a Third World EIR: You were among the very first to arrive in Baghdad country. If you are already dependent upon modem facilities, after the Gulf war. What did you see? on drinking water coming from:a faucet, and on a toilet that Skov-Hansen: I arrived in Baghdad on March 7 as a mem­ can be flushed, then you are in deep trouble the day these ber of a delegation from the Middle East Church Council. things are cut. We were quite shocked, when we realized The MECC has its officein Limasol, Cyprus, but throughout how effectively these things had been destroyed. the period leading up to the Gulf war, we had a stock office i in Amman, Jordan, to coordinate the relief work for the EIR: There has been a great deal of discussion about wheth­ refugees from Kuwait and Iraq. It was from here that we er or not legitimate military targ�ts were bombed. brought in the first Western shipments of emergency relief, Skov-Hansen: From our standpoint, these werenot military which arrived in Baghdad on March 7. Our group consisted targets. First of all, Baghdad w.s not a war zone as such. It of a representative from Danchurchaid-myself-a repre­ was Kuwait they were supposed to liberate. In our opinion, sentative from the Norwegian Church Relief Organization, Baghdad was not a war zone, and post offices, central tele­ and a couple of people from the British Christian Council in phone exchanges, and things like that are not obvious mili­ Amman. tary targets, neither are ministri�s. I do not know how mili­ As I said before, it was a very strange feeling to arrive in tary targets are defined. If it is installations of weapons and Baghdad. We drove from the Jordanian border through Iraq the production of weapons, yes� but that is not what we are during the night and arrived in Baghdad at dawn. We went talking about. They were clearl, civilian targets, if one does through the suburbs and got to the center of the city very not limit civilian targets only to tesidential areas. I am not an early in the morning. It was more or less like a ghost town. expertin those things, so I don't really know, but for us, they Perhaps, we had expected to find much more material dam­ were civilian targets, as if you bombed the central post office age, since we had followed the bombings of Baghdad night in Copenhagen. after night; but to our surprise, the destruction was very limited, at least at firstimpression-a few buildings here and EIR: Ramsey Clark and other$ have clearly said that these there , and most of the bridges across the Tigris River. It were not military targets and therefore, the U. S. government was not until later in the day that we realized what kind of should be held responsible for what it did (see interview with buildings had been totally destroyed. They were very strate­ Prof. Francis Boyler, EIR, May 24, p. 66). gic sites: ministries, TV, communications, pumping sta­ Skov-Hansen: It is a matter of definition. I think that this tions, the water supplies, the electricity supplies, and those war was a totally new type of war. It was not a conventional kinds of things. And it was not just one attack and one round war in the sense that it was a totally different way of conduct­ of bombings, but countless bombings during the short time ing a war, with completely new types of weapons. And that of the war. The same strategic buildings had been hit again is a very effective way to paralyze a society. Therefore, if and again, and then, of course, the bombs that had missed they consider them military targets, it is because civilian their target, and hit the residental areas in the suburbs and in targets also become military targets when you want to para­ Baghdad. lyze the society. All of this might be very difficultto comprehend, but Iraq is not a traditional Third World country. Baghdad is a very EIR: Danish Radio reported �ently about an article in the large and modem city of 4-5 million people. Therefore, it New York Times by a journaliSl Paul Lewis, who said that

10 Economics EIR May 31, 1991 the initial reports about the damage in Baghdad might have tion is to liftthe sanctions. But then there is the double effect, been all true, but that now everything is functioningnormal­ that is, they fear that this could be used for other things, and ly, and that water and electricity have been restored. He said that is why the allies maintain the salctions. that the Iraqis were much better organized than anybody had expected and therefore the sanctions should continue, EIR: But aren't there some very unpleasant consequences because otherwise Iraq would become a military threat again. if the sanctions continue? Skov-Hansen: I was at a U.N. meeting in Geneva on May Skov-Hansen: That is clear. 15. There, Prince Aga Khan [U.N. Executive Delegate for the Humanitarian Program in Iraq] gave a report on his last EIR: Then what are we going to do? visit to Iraq, including Baghdad. The issue was the Kurdish Skov-Hansen: You have the humanitarian goals and conse­ and the Shiite uprising. He had been in Baghdad to make an quences and thepolitical ones. They are not always compatible. agreement with the authorities about a comprehensive relief effort everywhere, both in the Kurdish area and in the south­ EIR: But, how can we have a political policy that is contrary easternarea around Basra. He reported that things now func­ to a humanitarian attitude? tion much better in Baghdad, but not in any satisfactory way Skov-Hansen: Very easily, because isn't that what they are yet. Maybe the center of the city is being restored, but in the trying to do to Iraq? We have the sanctions, and then the outer areas the supplies of drinking water, etc., have not at population is suffering. That is supposed to be the motivation all been reestablished. for them to overthrow the regime, or to get them on their And the food situation is a catastrophe. Iraq is totally knees and accept the conditions. That is why the sanctions dependent upon imports of food. The production has stopped are there. and they do not have the foreign currency to import food . That is why there is a catastrophic shortage of food. The EIR: As a human being, one has to react to that kind of water supplies still do not function. The pumping stations are thinking. What needs to be done now? What are the plans of down. There are massive problems with garbage collection. the various relief organizations for Iraq? The sewer systems are only functioning in limited ways. Skov-Hansen: Right now we are very busy trying to help Still, Baghdad is slowly returning to normal life. in northern Iraq. That is, help the returning Kurds, and it is But the situation is much worse in the countryside and a massive job to resettle almost 2 millionpeop le. Then there around Basra. That is the area that was hit hard by the Gulf is the Baghdad area. But there are areas which were hit war and the uprising afterwards. Here, there used to be very even worse, especially fromBaghdad down to Basra, which effective modem agriculture. This has been smashed too. certainly got its share both during �e war and the civil war There are no power plants, and the irrigation systems do not after that. That is the area which we are now tryingto reach. function. Therefore , they fear a mass migration into Iran, We have an airplane leaving tonight directly from Luxem­ because the entire areais threatened by starvation. Again this bourg to Baghdad. That is the latest of a numberof airplanes goes to show that Iraq is not an underdeveloped country. One bringing 50 tons of food and medicine. It is the firsttime we could imagine if our own big cities and our own agriculture are flying directly to Baghdad. Part of the supplies will go were destroyed. up north to the Kurdish area, and part of it we will try to get down to the civilian population in the southeasternar eas. We EIR: Did you discuss the sanctions issue at that meeting? have been as far as Kirkala, 100-150 kilometers south of Skov-Hansen: Yes, indirectly, by way of concluding that Baghdad, but we will now try to get even further south. unless the sanctions are lifted and trade is resumed, the Iraqi When I say "we," I mean Danchurchaid in collaboration people will become totally dependent upon humanitarian aid, with MECC, which includes all the small Middle Eastern which is totally insufficient. In a way, this was an indirect churches. Some of these are very old churches like the Ortho­ message, saying that trade has to be reestablished, so people dox Syrian Church, the Assyrian i Church, the Armenian can get the necessary food , and so that self-sufficientagricul­ Church, etc. There are 12 of these represented in Baghdad. ture can become reestablished in order to stabilize the situa­ They have negotiated with the authorities and the Red Cres­ tion and prevent the loss of lives. cent organization and have been met with great cooperation. It is only a question of solving the practical problems, like EIR: And that is what you suggest? availability of diesel fuel and gaSOline in order to get the Skov-Hansen: Yes, and that was also our most important shipments organized for such large quantities of supplies. recommendation afterour first visit right after the war. That But we know where the hospitals ate, where the institutions is-sure we can accomplish something in a relatively short are that can receive and distribute the supplies, so it is only period of time through emergency relief and humanitarian a question of getting out there. aid, but you cannot continue that for half a year or one year. Therefore, the only effective way to help the civilian popula- EIR: Can you give us any news concerning the situation of

EIR May 31, 1991 Economics 11 • the children in Iraq? Skov-Hansen: Our very first contact in Baghdad was with Currency Rates the Saddam Children's Hospitat the main children's hospital in Iraq, where we spoke to the director and the chief surgeon. The dollar in deutschemarks They were extremely good contacts, because they were very New York late afternoon fixing open and kind. In this way we also got a good sense of the situation in the country as a whole, because the children were 1.80 referredto the hospital not only from Baghdad, but also from the rest of the country. When we were there the situation was 1.70 /'-1""" ",\ � I--... roo. chaotic. The hospital was overcrowded and there was no '"""" --- , medicine. Later, we visited the hospital several times, when 1.60 we had new shipments. Yes, now they have started to receive

1.50 medicine and the things they need to help the children, but there are still a lot of reports of diarrhea and intestinal prob­ 1.40 lems, mainly from the polluted drinking water. The situation 4/3 4/10 4/17 4124 5/1 518 5/15 5122 in the hospital is better and some of the supplies can be further distributed, but the number of cases they receive show that The dollar in yen New York late afternoonfixing the water supplies are far from being satisfactory.

160 EIR: Looking at the proportions of the problems in Iraq, Iran, and Kuwait, can this be handled by the private relief 150 organizations alone, or do we have to involve the Western governments? 140 Skov-Hansen: There is no way that we can handle it on a -"'v """I" - private basis. We have never said that we could. We could 130 never reach anything that resembles effective help for Iraq.

120 Danchurchaid couldn't; 120 relief organizations couldn't, 413 4/1 0 4/17 4124 5/1 518 5/15 5122 because we are talking about immense resources that are needed. What we have participated in-and I would say in The British pound in dollars an effective manner as a voluntary private organization-has New York late afternoonfixing been a limited first aid. But in the long run that is no help. What is needed is a totally different kind of effective help 2.00 and reconstruction. Maybe we: have saved some children,

1.90 like at the Saddam Children's Hospital-which now func­ tions and can take care of the patients, which it couldn't do 1.80 when we arrived on March 7, thanks to the medicine and f"'..I food which we and others have supplied. That is what we 1.70 r I-\.. � � call first aid. But we have to reach the stage where all the \.. - �� health institutions and the hospitals, so to speak, make them­ 1.60 selves superfluous. That is not happening. Of course, there will be children hospitalized even under normal circum­ The dollar in Swiss francs stances. But the kind of diseases they are getting now, the New York late afternoon fixing cases of diarrhea and malnutrition, are due to an abnormal and very catastrophic situation. 1.60 These are clear signs that something else has to be recti­ fied, and that is the food situlI-tion-the rebuilding of the 1.50 domestic agriculture, and more than anything else, that � ""� means imports of pesticides, fertilizers,and seed grain. They 1.40 .A V"-� ...... do not even have that in the area to get the agriculture func­ 1.30 tioning again. In addition, they have to import food. Probably 40-60-70% of the food has to be imported. 1.20 EIR: And that means lifting th� sanctions? Skov-Hansen: Yes.

12 Economics EIR May 31, 1991 •

Whenpush comes to shove

Is the United Nationssavior or spoilerwhen it comes to humanitarian aidfo r Iraq? By EricHoskins, M.D., Medical Coordinator, GuifPeace Team.

This article is being reprinted with the kind permission of the ers, and spare parts for machinery and irrigation pumps. author. Between August and January, food prices increased by as much as 1,000% . Now that Kurd-Aid has come and gone, refugees are re­ Last week, the United Nations quadrupledthe amount of turning home and unarmed United Nations "guards" are its appeal for humanitarian aid for Iraq, to just under $1 heading north, the public would like to believe that for once billion. Unicef and the World Health Organization have now the problem is actually being solved, rather than simply warnedof a "potentially disastrous situation" if more money Band-aged. and aid arenot immediatelyforthcoming. However, Kurdish and Shi'a refugees returning to Iraq Yet, the scale of the human tragedy unfolding has been are likely to find home less than welcoming. If one takes known by Western governments and aid organizations for United Nations special envoy Prince Sadruddin Aga Khan's months. Not only has this tragedy been entirely predictable, recent pronouncements to heart, conditions within Iraq are it has been the product of six months of a strangulating eco­ now critical. Food shortages are leading to rising rates of nomic embargo culminating with a war whose greatest im­ malnutrition, and a paralyzed health service is unable to cope pact was to eliminate Iraq's capacity to generate electricity, with surging epidemics of disease. thereby paralyzing the country's infrastructure. In Kirkuk, several hours north of Baghdad, an old man One of the great myths of this war was that food and lay collapsed some ten meters in front of the emergency medicine would continue to be allowed into Iraq. From Au­ entrance to the general hospital, suffering from a potentially gust to March, no food whatsoever was permitted to enter fatal exacerbation of his chronic chest pain. There are no Iraq (from any source) according to the provisions of Sanc­ medicines to give him. Inside, the 4OO-bed hospital's only tions Resolutions 661 and 666. attending physician explained how she had just completed Resolution 661 stated that foodstuffs would be allowed an emergency caesariansection "with fliesswarming over the into Iraq under "humanitarian circumstances." Resolution incision because operating room windows had been shattered 666, passed one week later, indicated that "it is for the Securi­ during wartime bomb blasts." ty Council alone . . . to determine whether humanitarian Hospitals have been reduced to mere reservoirs of infec­ circumstances have arisen" and hence when food might be tion since most medicines are in short supply, laboratories allowed into Iraq. cannot function, operating theaters have no supplies, and Indeed, it wasn't until a humanitarian emergency was basic services (including food, water and electricity) are of­ declared in March, and only afterconsiderable pressure from ten unavailable. concerned governments and aid agencies, that even a single In all parts of the country, critical shortages of clean scrap of food was permitted entry into Iraq. This followed drinking water have led to epidemic levels of gastroenteritis eight months of what effectively constituted a total food em­ (infectious diarrhea). Thousands have died. In Nasiriyah, bargo in a country that historically imports more than 70% near Basra, 98% of admissions to the town's pediatric hospi­ of its food. tal are children with diarrhea. Infants as young as two months Not only had no food been provided by the international old are admitted badly malnourished, dehydrated and dying. community since August 1990, but for the firsttime in history Once in hospital these babies are often given only two hours a country and its government, in this case Iraq, had been of intravenous fluid and then discharged since doctors have prohibited from importing food (and medicine) for its own no drugs with which to treatthe diarrhea,and no food to offer people. these scrawny, vacant-eyed infants. Even with the March declaration of a humanitarian emer­ Food throughout the country is prohibitively expensive gency, foodstuffs were only permitted entry when provided and generally in scarce supply. The U.N. admits that agricul­ "through the United Nations in cooperation with ...other tural production has been halted due to a lack of fuel,fertiliz- iate humanitarianagencie s." Despite the presence of an inter�

EIR May 31, 1991 Economics 13 nationally acknowledged food emergency, Iraq could still fact grows wider still. not purchase or import its own food and relief supplies. Resolution 661 states q inno�uously that "supplies If we look at the international commmunity's efforts to intended strictly (or medical " are exempt. Perhaps deliver food to Iraq , the figures are somewhat discouraging. sensing the laxity of the earlier �v"Ul,�ll1U'U , 666 quickly issues A country with more than 18 million persons, lraq 's daily a clarification by specifying "medical supplies �hould· be food requirements amount to roughly 10,000 metric tons of exported under the strict of the government of staple foods per day , 70% of this imported. From August to the exporting state ." This is clearly intimidating if April , the total food provided by the internationalcommunity not outright threatening to governments who perhaps amounts to less than 10,000 tons---enough for only a single naively believed that medici to be exempt from sanc- day's ration and less than one-half of one percent of the tions controls. country's estimated needs during that nine month period. Historically, Iraq imports than $500 million worth Iraq , in short, was not only left to starve, it was forced to of medicines per year (one of . highest per capita rates in starve itself. the Middle East) . Since it has been estimated that Unfortunately, more was at play than simply Western less than one-thirtieth of Iraq' indifference to the growing calamity within Iraq . There are being met. All mf�Ql(;lflieS--lln.qIUQ:mg vaccines, insulin, an­ numerous examples where coalition governments actively esthetics and been found to be in short prevented the export of food to Iraq . supply since late 1990. Iraq 's

Over 2,000 metric tons of infant formula and powdered has been suspended since "'vl',L�"IJILJvl milk, purchased by the government of Iraq prior to August Already , cases of paralytic 1990, remain blocked in ports and borders around the world. breaks of measles are likely. Shipping companies and governments housing these stocks Despite access to health being a fundamental human argue that the formula and milk powder cannot legally enter right, the following methods used to effectively ban Iraq due to economic sanctions. The expiry date of the food medicine from entering Iraq . is now dangerously close and it is likely that the shipments More than 50 separate COln.�lgfllments of medicines were will be spoiled. Over 1,800 tons of milk powder have been purchased by the government Iraq prior to August 1990. blocked in Mersin, Turkey since August 1990. A further 500 These medicines are still held in foreign ports and tons have been held since August by authorities in Poland border stores, where shipping or the governments and Bulgaria. themselves are preventing medicines from being for- When one begins to examine the impact of sanctions on warded to Iraq . Indeed many companies have importation of medicine to Iraq , the gulf between myth and to sell medicines to Iraq since , August embargo. IIl .many

14 Economics EIR May31, 1991 Left to right: 1) At Erbil Pediatric Hospital, a special infectious disease ward fo r typ hoid patients. 2) At Sulamaneiya Pediatric Hospital, a two-year-old Iraqi child suffering from gastroenteritis, severe vomiting, and malnutrition. "Once in a hospital these babies are oft en given only two hours of intmvenous fluidand then discharged, since doctors have no drugs with which to treat the diarrhea, and no fo od to offe r these scrawny, vacant-eyed infants." 3) A street scene in Kirkuk: children washing in contaminated water. "Critical shorta es of clean drinking water have led to ep idemic levels of gastroenteritis."

countries, a special license must be issued by the government sanctions should not be imposed wit the same vigor against before medicines can be purchased or shipped to Iraq . Iraq . Finally, only those items which the Security Council has However, there are important di ferences. Unlike South deemed "supplies intertded strictly for medical purposes" are Africa, it must be concluded that tHe majority of Iraqis do allowed under the sanctions restrictions. All materials, spare not wish sanctions to continue again�t them. Sanctions were parts , transport, and other paramedical items essential for applied before the war, when no such humanitarian emergen­ the operation of a health care system are still prohibited or cy existed, and when sanctions were meant to weaken, not allowed only on a case-by-case basis after agencies submit bll. . I an application to the Security Council. Furthermore, sanctions against Iraq were applied as part As a result of the above measures, Iraq has had no choice of a non-violent campaign to force the Iraqi military out of but to join Bangladesh and Africa in the growing queue of occupied Kuwait. It was understood that sanctions would countries appealing for humanitarian assistance. be removed following the Iraqi withdrawal . However, upon But, unlike Bangladesh and Africa, the solution to Iraq's implementation of the cease-fire agrbement, it became clear crisis is far more manageable. A rich country, remove all that sanctions would only be lifted once Iraq complied fully non-military sanctions and Iraq will be capable of providing with the cease-fire terms. More redently, we have seen a its own currency for relief and reconstruction. Allow Iraq to further shuffling of the goalposts a� at least one Western export petroleum and they will once again have the funds leader (with Security Council veto ppwer) has declared that with which to purchase food and medicine for the Iraqi popu­ sanctions will not be lifted until Saddam Hussein is no longer lation. And by offering genuine United Nations assistance, in power' .. . .. the international community will possess the requisite super­ For t h e maJonty 0 flraql" CIVI'1' lans I th e war IS contmumg. vision to ensure compliance with cease-fire terms. Their suffering now is largely due to the cruel hand of puni­ Yet we continue to sweep the sanctions issue under the tive economic sanctions. As more and more coffinsare spirit­ carpet. We must stop seeing sanctions as justified leverage ed away aboard taxis and horse carts , towards cemeteries against the Baghdad regime and consider that we have drifted already bulging from ten years of w , isn't it time we stop I a long way from the original terms of their implementation. the hurting and begin the healing? But we must acknowledge one further inquietude, one reason why the peace movement in particular has been loath The author, a medical doctor wh@ sp ecializes in public to acknowledge the controversy surrounding sanctions. After health and disaster relief, recently lconcluded a fo ur-week relentlessly championing the cause of sanctions against apart­ I health and nutrition assessment in both southern and north­ heid South Africa, how can we possibly suggest that punitive ern Iraq.

EIR May 31, 1991 Economics 15 is to drop the "fast money" policy of the Special Economic Zones along the coast in favo� of finally creating a modem infrastructure for the national �onomy as a whole. Such a program, as Sun Yat-sen corre�tly envisioned, was not only Clash over typeo f a necessary prerequisite for th� development of China, but was also a necessary investm�nt program for the Western investments in China nations, to provide the markets necessaryfor their own recov­ ery from the post-World W� I recession. The failure of by Michael O. Billington the West to heed Dr. Sun's advice at that time, in favor of speculative looting, led inevitably to the Great Depression of the 1930s. Amidst all the discussion in the U. S. Congress and the media There are some voices, even within the P.R.C., who about whether or not the U.S. should extend Most Favored are calling for infrastructure projects in this direction. The Nation (MFN) status to the People's Republic of China current "hard line" leadership centered around Li Peng (P.R.C.), a more crucial issue is being fought out in the admits that projects such as building the Three Gorges Dam background: What kind of investment will go into the world's across the Yangtze, and the building of an extensive nuclear most populous nation? Two opposite policies present them­ energy grid, are the only approlj,ch that could provide for real selves: on the one hand, massive infrastructure development, development. But there is no �dea of how to finance such of the sort first proposed by Sun Yat-sen in the 1920s, or, projects nor how to mobilize t�e skilled labor to implement continued expansion of the "free trade zone" policies in the them. In fact, the domestic pOli¢ies of the regime arevirtually coastal cities at the expense of the agricultural and industrial a new Cultural Revolution, mqant to suppress any indepen­ infrastructureof the country as a whole. It is this latter policy dent thought of the sort that l�d to the 1989 revolutionary that has been the basis of collaboration between the U. S.and movement. Great projects will not function in such a mind­ the P.R.C. since Henry Kissinger and George Bush first less environment. established ties with China in the early 1970s. As to the "reformers" in the government, their reforms The current highly publicized debate over MFN is not of the last 12 years were a disaster. The truth of the "opening what it is portrayed to be in the Westernpr ess, i.e., congres­ up to the West" under Deng Xiaoping is that the economy sional pressure on Bush, or merely a partisan effort by Demo­ was "opened up" to a collapsing, post-industrial mess in the crats to attack Bush's close relationship to the Beijing regime United States, under the direction of Henry Kissinger and as a presidential campaign issue. This is made obvious by Associates. The Anglo-Ameri�an interests, represented by observing that the Bush administration itself began the con­ Kissinger and Bush, were interested in China's economy frontation by attacking China's balance of trade surplus and only as a source of cheap labar , not as a market for heavy their military and technological trade with other Third World industry or infrastructure devejlopment, which would have nations. The se, and not human rights , are the issues that required a transformation of the international monetary sys­ are actually governing the debate. The emerging new world tem. Today, while the Bush administration organizes against order envisioned by Bush et al . insists that the developing major infrastructure loans into the P.R.C., there has been no nations must be prevented access to modem technology, effort to slow down the inve�ents into the cheap labor claiming that such nations can not be trusted with potential markets in the Special Economic Zones. military-use technology. Although China lacks the means Japan, although it has also taken full advantage of the to provide substantial aid to other developing nations, their cheap labor in the Special Economic Zones, has repeatedly ability to provide support outside of the control of the Anglo­ insisted that no long-term solution to the Chinese economy Americans represents a threat to Bush's new world order. exists without a major transformation of infrastructure. Japan Also, the Bush-Kissinger crowd want any available in­ resumed a five-year, $6 billion loan program last November, vestment capital from other nations--especially Japan-to which had been suspended after the Tiananmen Square mas­ be diverted to bailing out the collapsing U.S. financial struc­ sacre, which is primarily directed at basic infrastructure and ture, rather than flowinto Third World development. In such resource development. They alSo called for the Asian Devel­ a new world order, the only investment funds to be permitted opment Bank to extend a $500million loan for rail and bridge into the developing sector are those for labor-intensive, ex­ construction. But the U.S. is reported to have argued against port-oriented industries under "free trade zone" regulations, this ADB loan. China has now requesteda massive $5 billion creating conditions like those of the British Imperial age . loan from Japan for resource development, in addition to existing agreements. The United States wants to divert such Modem infrastructure for all of China Japanese money to bail out the U.S. deficit, without which The opposite policy, and the only one that could possibly the bottom will fall out of the already bankrupt U.S. reverse the catastrophic economic breakdown facing China, economy.

16 Economics EIR May 31, 1991 Agriculture by Marcia Meny

United States imports Swedish barley tional Agricultural AdvisoryCommit­ Afrenzy offo od dumping is being organized by the worldfood tee (NAAC) of the Citizens Network cartel under the Bushfree trade policy. for Foreign Affairs . The Citizens Network includes among its directors, banker David Rockefeller, AD� head DwayneAn­ dreas, and AFL-CIO President Lane Kirkland. Henry Kissinger, who pro­ Even before the congressional vote Cargill, Archer Daniels Midland, An­ motes the policy of using food as a took place on whether to continue the dre, Bunge, Louis Dreyfus, and Fer­ weapon, is an honorary adviser. Bush administration's imperial de­ ruzzi) have brought in Swedish oats to Little wondet that food dumping mand for "fast track," rubber stamp the U. S. market over the past 10 is rampant. HeinZ, for example, pro­ approval of any free trade agreement years . One trader reports that 12 ship­ duces ketchup in Tijuana with cheap with Mexico or the 100 member na­ loads of oats from Sweden are lined labor and underpriced produce. tions of the U.N. GATT (General up for the coming months. The U.S. Department of Agricul­ Agreement on Tariffs and Trade), John Mittleider, director of mar­ ture last year gave sudden approval there are new examples almost daily keting for the North Dakota Barley to allowing Mexicanbeef to enter the of dumping of farm commodities by Council, said of the Swedish barley U.S., which heretofore had been con­ the world cartel of food companies. innovation, "We may end up being sidered unreliable under sanitation At the beginning of May, a ship a dumping ground." He charged, "It codes. Five in-bond abatoirs are pro­ filledwith barleyfrom Sweden floated certainly doesn't sit well with our ducing beef at serf-labor wages for ex­ into port in California, to unload its growers that one of our exporting port to the United States. golden cargo at Continental Grain's firms that has benefitted from U.S. The most dramatic case of dump­ Stockton elevator. subsidy programs aimed to support ing is the criss-crossingof wheat over U.S. barley growers were livid, domestic prices is also importing the U.S .-Canada border since the Free but those who castigated Washington barley, softening the domestic Trade Agreement went into effect two officials and the cartel companies for market." years ago. At that time Cargilland the failing to enforce "fair play" among Mittleider is referring to the Ex­ other cartel companies re-positioned nations, and allowing subsidized port Enhancement Program, in which elevators and grain assembly points Swedish barley to enter port, were the big grain trading companies get to control the North American wheat wasting their breath. The rhetoric of free government handouts of grain belt, outside government power. To "free trade" is just a cover for free­ and other commodities in order to serve cartel interests, Canadian wheat for-all dumping and usury by a select guarantee the cartel's profits in their was first dumped into the United group of companies, banks, and pri­ trade deals. Recently Continental was States. Then, a!; of April this year, vate interests who see themselves as given a fat export bonus to sell dis­ the Canadian government authorities above the law of nations. They are count feed barley to Israel. agreed that U.S.' wheat should be al­ wheeling and dealing in commodities, This is not the exception, but the lowed to cross i into Canada freely while deliberately denying food, and rule of free trade. Thefood cartel com­ without import licenses. the means to produce food, to millions panies regard the proposed GATTand To give covet for this, an elaborate who are starving. North American Free Trade Agree­ set of calculatioll/l is done by bureau­ The Swedish barley shipment in ment with Mexico as merely a license crats to determinelwhich national sector April had920, 000bushe ls, and another to completely consolidate their deadly of farmers has a marginally higherde­ shipment rumored to be on the way, control over farm and food supplies gree of subsidy i and then they are will displace about the amount that everyWhere. The grain cartel issued a dumped on by the cartel trade. In the Montana barley growers send to Cali­ statement April 24 in favor ofNAFTA wheat decision, sources say that Cana­ fornia,which is one-third of Montana's and the fast track, signed by Continen­ dian Prime Min�ter Brian Mulroney market for barley, according to the tal Grain Co., Cargill, ADM, Louis (called Lyin' BrianBaloney) personally Montana Wheat and Barley Com­ Dreyfus, and three dozen other indi­ made the decision to allow in U.S. mittee. viduals and groups. wheat, over th� objections of his The grain cartels (Continental, They called themselves the Na- cabinet.

EIR May 31, 1991 Economics 17 BusinessBrief s

Research & Development tracts in telecommunications, electricity gen­ ry which Washington has claimed as its own, eration and, other infrastructural projects. has obviously gone to its head . Washington is Asian countries respond Companies fromJapan, France, and the Unit­ attempting toexploitthemomentumgenerated ed States are currentlybeing considered for a U.S. with science center by the Gulf war to create a 'super council' of to $10 million site study contractfor Indonesia's just seven nations which will decide what's first nuclear reactor. rightand What's not in the world .. ..The G­ A "center for Asianscience and industrialpoli­ Indonesian President Suharto plans to in­ Ts domination of the world economy is bad cyresearch" hasbeen founded in New Delhiin auguratethe controversial Kedung Ombodam enough. 'therewill bemore acrimony ifit is to orderto "seek geopoliticalcooperation among in Central Java on May 18, a project in which also push lts collective weight aroundin politi­ developing Asian countries and evolve a col­ the Japanesehave a hand, the Indonesian daily cal affairs, which is bound to also meaninter­ lective science and industrialpolicy , "the Press Suara Pembaruan reported May 17. The vening in pomestic, bilateral, and regional af­ Trust of India announced in early May. $281.3 million dam , funded by the World fairs of mltions." Headed by Dr.Dhirendra Sharma, a work­ Bank, the Export-Import Bank of Japan, and shop of science policyexperts from several un­ the Indonesian government, and involving namedcountries concluded thatthe center was Japanese contractor Hazama-gumi Ltd ., was needed to "encourage cooperation and collec­ completed in January last year. Technology tive research ...in view of the official U.S. The project straddles the three districts of ; action in placing China, India, and Thailand Sragen, Purwodadi, and Boyolali, over Only 2S semiconductor under the blacklist of the Special 301 Trade 17,606 hectares in the provinces of Central Provision"-a provision that places sanctions Java and Jogyakarta, and will supply water to plantS by the year 2000 against anycountry thatdoes not comply with 70,000hectares of now -dry land. The damhas Washington's notion of ''free trade ." been opposed by environmentalists. The world will only beable to afford 25 semi­ Thecenterwas termed"the right response" conductor factories by the year2000, because to theU.S. policy, which is accused of tryingto they will cost $2 billion each, a panel of indus­ impose growing control"in the formof trade, try experts assembled by the National Advi­ banking, patent, and industrial laws ." Said Third World sory Confullttee on Semiconductors has con­ Sharma, "Laws passed by governments and cluded, theNew York Times reportedMay 16. parliamentsin Westerncountries arebeing im­ Malaysia attacks U.S. The panel of 90 expertsforecast that facili­ posed on ThirdWorld countries ." ties to producesemiconductors will beso cost­ plan for G-7 control ly, that nosingle company will beable to afford one, so technology andresources will' have to Malaysia's Business Times praised Germany beshared to a degree neverbefore achieved by International Trade and Japan for theirrefusal to bowto U.S. pres­ U.S. industry. sure to cut interestrates at the Group of Seven ThepWlel expects 10 of the 25 factories to France tries to edge in (G-7) advanced industrial nations meeting the be located in the United States. last week in April. Developing sector nations on Japan in Indonesia are relieved that Tokyo and Bonn "stuck to their guns," says the newspaper. French Industry Minister Roger Fauroux Nevertheless, the editorial continues, West Ada wound up a three-day visit to Indonesia on there is great concern over "the U.S. now May 8, wherehe told the pressthat oneof Fran­ wanting the G-7 to go beyond the economy Turkey, Iran in ce's major aimswas to challenge Japan' s trade sphere and venture into the political arena as and investmentdomination in the region. "We well." It quotes U.S. Undersecretary of State economic deal are determined not to leave free roomjust to Robert Kimmitt,that the U.S. wants the G-7 Japan," Faroux said. "It is not written any­ to "meet frequently to fashion our response to The recent tripof Iranian PresidentRafsanjani wherethat Japanhas monopoly rights on Indo­ existing situations, anticipate and avert future to Turkey, his first as President, hasled to the nesia, and I don't thinkIndonesia wants that." crises, and pursue broader policies ." announcement of a $10 billion rail, electrical, Japan poured $2.24 billion worth of in­ Says theBusiness Times: "TheU.N. Secu­ and natut.u gas agreement between the two vestment into Indonesia in 1990, while Fran­ rity Council made a misjUdgment in allowing countries; ce's investment in Indonesia totals $239 mil­ the U.S. to lead combined forces to oust Iraq Turkish Oil Minister Mehmet Kececiler lion since 1967. from Kuwait instead of arranging for a U.N. told a Teheran press conference on May 8 that Fauroux said France would fight for con- force to handle the task. Thatact, and the victo- the deal has the following components. Iran

18 Economics EIR May 31, 1991 • SOUTH KOREA wants to work more closely with Indonesia on de­ veloping energy resources, including nuclear power, . Seoul's Energy and Resources Minister Lee Hee-il an­ will supply 3 million tons of crude oil to Tur­ ChristianEconomics nounced May 61 He told the opening key, and the Turks will supply 10,000tons of of an annual bilateral energy meeting refinedmotoroiltolran, and anatural gaspipe­ Pope attacks in Jakarta that �uclear power would line will belaid betweenthe two states, which be included in future technical coop­ will branch into Bulgaria and Greece. Its ca­ monopolistic capitalism eration prograrl1s between the two pacity will be 10 billion cubic meters , of which countries. Indo$esian Mines and En­ Turkey will use half for domestic con­ Pope John Paul II used the 100th anniversary ergy Minister Ginanjar Kartasasmita sumption. of the encyclical Rerum Novarum on May 15 was at the press·conference. Twkey waspreviously dependenton Iraqi toattack "monopolisticcapita lism." The Pope petroleum and natural gas . addressed alargegroup ofpolitical , economic , • THE INDIAN government will Twkey will also supply7 billion kilowattl and labor leaders on the church's social doc­ soon permit the marketing of Centch­ hours of electricity to Iranthrough 1994, after trine, on the occasion of his release of a new roman, a weekly abortifacient pill which the two countrieswill exchange 2 billion encyclical, Centesimus Annus. that prevents tbe implantation of a kilowatts of electricity per year. On July 1, On May 19, a Sunday, 100,000 workers fertilized egg in·the uterus, according Twkey will repeal a law which restricts the from all parts of the world gathered in St. Pe­ to Science mag<,!zine. It is expectedto number of Iranian trucks in Turkey . Finally, ter'sSquaretocontinuethe celebration,culmi­ be on the market in about six months, the Teheran-Istanbul railway, which had been nating in a march of 20,000 Catholic orga­ and will license the new contracep­ abandoned, will be reopened. nizers . tive for sale, as well as for distribu­ Turkish sources say that Pakistan will "We know that productive capital, in the tion through the Indian welfare shortly be incorporated into this deal. full sense of this word, increases quickly in system. particular inthe industrializedcountries ," said the pontiff. "However, this increase is not al­ • U.S. WHIllAT production will ways going to the benefit of a mu)titudeof per­ fall by 25% this year from last year sons, but the capital remains concentrated in and world prO(,uction will fall 6%, AIDS the hands of few individuals. Now, the social according to (ISDA estimates the doctrine of the Church has always defended May 10 Wall Stteet Journal reported. Scores of Dlinois the participation of a large numberof people in DONALD ;TRUMP doctors, nurses stricken productive capital. • intends to , ''Thereis also the danger that capitaltakes invest in Brazil's gambling "indus­ possession, that is, conquers and usurps the try."On the expectation that the Bra­ During the last decade, 126 doctors, nurses, authority of the state , reinforcing in this way zilian Congress will shortly repeal laboratory technicians, and other health care its economic and social monopoly." the 40-year-old anti-gambling legis­ workersin lliinois have diedof AIDS, the state The Pope denounced the emergence of lation, Trump� whose empire is Public Health Department reported. Another "new poverties" in the developing countries crumbling into bankruptcy, an­ 68 currently have the disease, it said. and industrialized nations , blaming it on "an nounced that he intends to "invest in Statisticsreleased by the department indi­ unjust distribution of goods ." But, the Pope the gambling sqctor of Brazil," in the cated that 14 nurses, S physicians , 1 surgeon, claimed, "a moral reform must go together, words of Trump's Brazilian repre­ 3 dentists, 19 healthaid es, 11 lab technicians, betteryet, precede structuralreforms . . . . The sentative, Roberto Yianna Pinto. and 15 other medical workerscurre ntly arein­ deepest root of social evils is moral in nature: I fected with HIY. In the last decade, 18 physi­ the exclusive desire for profitand thethirst for • THE HOUSE Banking Commit­ cians have died of the disease, as well as 36 power." tee's Financial iinstitutions Subcom­ nurses, 2 dentists, 1 surgeon, 25 health aides, The Pope's new encyclical attacks the mittee voted 35-0 May 16 to bar any 9 lab technicians , and 35 other health care "capitalist" nations of the West for misinter­ government � a ncy from reimburs­ workers . preting the collapse of the socialistbloc. ''The ing foreign depositors in failed U.S. The statistics were released May 14 at the Western countries ...run the risk of seeing banks. While . banks like Morgan requestof Rep. PennyPullen (R-ParkRidg e) , this collapse as a one-sided victory of theirown Guaranty and Citibank-with large who is sponsoringlegislation to notifypatients economicsystem and thereforefailing to make foreign deposits-pay insurance pre­ who have beentreated by HIV -infectedhealth necessary corrections in that system. Mean­ miums only oil domestic deposits, careworkers . No state law requires patients to while, countries of theThird World areexperi­ the FDIC has been providing cover­ benotified if they came in contactwith a health encing morethan ever the tragedy of underde­ age on both foreign and domestic de- worker who had AIDS , and there is no record velopment, which is becoming more serious posits . I that any patients have been told. with each passing day." I

ElK May 31, 1991 Economics 19 �TIillSclence & Technology

Cold fusion generators possible in five years PhysicistsFre derick Mayer and John Reitz have a new idea about what makes the controversial "coldJusion" experiments work. Their concept could revolutionize the world economy in 20 years.

Since the announcement of "coldfusion" on March 23, 1989 rium and a tritium nucleus taking place at room temperature, by Drs. Martin Fleischmann and Stanley Pons, the major they believe that the deuterium or tritium is compressed in a media as well as the scientific establishment have insisted palladium lattice so that a virtual neutron, which they name that there is no such thing, that the results reported were a hydron, is fo rmed by the condensation of electrons on a merely an appearance resulting from poor diagnostics, or proton. The hydron then is capable of entering the nucleus even fraud. But on April 25, 1991 , two plasma physicists, of a heavy element such as palladium, or perhaps some of Frederick J. Mayer and John R. Reitz, held a press confer­ the contaminants typ ically fo und in palladium samples. ence in Boston, at which they asserted that with modest fi­ The April 25 press conference by Drs. Mayer and Reitz nancing fromprivate industry, they believe that they could fo llowed a scientific seminargiven bythem at the Massachu­ build a working demonstration nuclear reactor infiveyears, setts Institute of Technology . Theyhave published a technical based upon the Fleischmann-Pons experiment. paper on this which appeared in the May issue of the journal Scientists in Japan, India, EasternEuro pe, and Italy, as Fusion Technology. well as in leading laboratories in the United States, have Mayer has more than 20 years of experience in magnetic confirmedthe experimental work of Fleischmann and Pons. and inertial confinementfu sion research and now heads a While the results have been in some measure anomalous and consulting and research firmin Ann Arbor, Michigan, called the experiments do not always agree quantitatively, there Mayer Applied Research, Inc. Reitz, a theoretical physicist, has been a consensus by nuclear scientists that something is his principal collaborator. The MARlcompany has applied important and new is happening. fo r several patents on practical nuclear reactor systemsand Now Mayer and Reitz claim that they have developed a processes that make use of the new research discovery.MARl theory, which has major commercial as well as theoretical is also lookingfor industrial partnersforjoint R&D projects. implications, which can explain these experiments. They A series of experiments proposed by Mayer andReitz conclude that what is really occurring is the creation of a new should confirm or disprove their theory. Most exciting, if kind of veryshort-lived particle which is able to penetrate the theyare proven correct, they say that they can build a demon­ nuclei of heavy metals to produce results very like what oc­ stration reactor withinfiveyears . According to their expecta­ curs in hot fusion. In other words, they confirm the experi­ tions, the "cold" fusion reactions will optimally occur at mental results achieved by Fleischmann and Pons, and the higher temperatures, in the 7,0000 to 8,0000 Celsius range. other scientists who have successfully repeated their work, This is well within the range of existing materials technol­ but they disagree about the theoretical conclusions. ogies, in contrast to the problem of developing a workable Rather than the fu sion of two deuterium nuclei or a deute- reactor with more traditional "hot fu sion " temperatures in

20 Science & Technology ElK May 31, 1991 Dr. Frederick Mayer (center) and associates announce their new theory of coldfu sion at a Boston press conference. I the range of 100 million degrees. Mayer expects that after a thought was going on. John and I got involved in trying to I successfu l proof of principle within five years, fusionpower figure out how you could make sorpe neutrons from deuterat- Can have a global impact on the world economy within an ed metals. In fact, we published a paper given at the Santa additional 15 years. Fe meeting in 1989 [a Departmenr of Energy conference on Excerpts fr om -their press conference fo llow. The tran­ cold fu sion] having to do with cra

work which finallyresulted in a publication yesterday . I Since started rolling in, it became more and more apparent that a few of our colleagues had heard about the publication, we something very important was hap�ening here; so it was hard were invited by Prof. [Peter] Hagelstein and Prof. [Law­ not to continue working on it. rence] Lidsky, at MIT, to deliver a technical seminar about Our paper is the first in a seriesI of papers on the implica­ thid since we thought there was interest beyond this particular tions of this new energy source. rhat we have done is put locale, we decided that it was appropriate to invite the media together a new theory for what wf believe are a new set of to come and talk about it and hear about what we have done . nuclear reactions mediated by a new particle-actually a new Let me give you a brief history. I am a plasma physicist series of particles. This theory pr vides a framework within by training. And John [Reitz] has been involved in both solid which you can attempt to undersdnd all of these anomalous I state physics and nuclear physics. I spent a number of years phenomena, not just cold fu sion. In fact, the theory gains its working in laser-induced fusion and in some smaller sense strength , as far as we are concemed, from the fact that it ' in magnetic fusion as well. I have been involved in trying to applies equally as well, and more uantitatively, if you will, control fu sion for most of my professional life. When the to the area called cluster impact sion [experimental work cold fusion experiments first came out two years ago , it was with ion-beam fusion conductedt at Brookhaven National 2 . impossible not to take a look at it and try to find out what we Laboratory]. 1t also ,goes some dIstance, we believe, to un- I EIR May 31, 1991 Sc'ence & Technology 21 derstand some of the other anomalies; for example, thermo­ chemical fusion as the Soviets have described certain experi­ ments. Also it produces an explanation for other anomalies, such as bursts of tritium coming out of volcanoes, which has The Fleischmann-Pons been pointed to by Steve Jones [at Brigham Young University in Utah] and others. It explains, as well, finding high levels originalexperiment of helium-3 inside metals, and other things. Let me get to just a very brief outline of what we think is going on, and In the original experiment conducted by Martin why we think it provides the framework for understanding Fleischmann and Stanley P ns, announced in March some of these anomalous characteristics. � 1989, the basic apparatus qonsists of palladium and Ofcourse, everyone knows that the big technical problem platinum electrodes placed $ a glass tube with heavy and the big conflict in cold fusion has been, how do you water. A voltage applied ac ' ss the electrodes splits the ever breach the Coulomb barrier [at which charged particles water into oxygen and deute ·um, and the deuterium is collide and their initial paths aredeflected] . We have found, then absorbed by the pallad� um. Excess heat at room from assembling other people's ideas and our own ideas, temperature was measured,! which Fleischmann and That we believe the way this happens is by the creation inside Pons attributed to a nucle process-the fusing of metals and inside plasmas of a new particle that is compact, ak- deuterium atoms. The expedment occurs at room tem­ very small, and short-lived. perature, hence the name, cqld fusion. The new particle occurs by making a charge-neutral com­ I pact of a proton and an electron, or a deuteron and an elec­ tron , or a triton and an electron. Those three particles we have called hydrons, because they areformed with hydrogen nuclei and electrons. These objects are nuclear size, not as you might guess, is not in Nst one piece. It requires two atomic size. They last only for short periods, but during rather interesting and rather spe�tacular events that have hith­ theirlifetimes they arecharge-neutral . Therefore , they don't erto not been seen: One is the fo rmation of these little com­ experience repulsion in a Coulomb potential. pact objects, called hydrons; and the other is this class of reactions, which, when the C�ulomb barrier is not there, Transfer reactions have a very high probability of Occurring-much higher than That's the Coulomb barrier part of the story. The other a D-D fusion. part of the story is that there are reactions that are allowed Now, the other part of this is that to create these [hy­ by these particles or that these particles provide an ability to drons], you have to have a certtin amount of heat; you have begin. These particles now can have a new set of reactions to heat up materials because they have to be ionized. They with very high Z nuclei [heavy elements, Z being the atomic have to have a lot of hydrogen isotope in them and they have number] , such as palladium or titanium. So it is no longer the to be ionized. And if you are doing it in metals, you also case that the easiest reaction to have happen is the deuteron­ have to have the right metals. If you are creating the hydrons deuteron reaction, the classic fusion reaction; These reac­ in a plasma, that is another way to have free electrons; then tions are called direct nuclear reactions, or simpler, just you can get ordinary D-D neutrons. That is what is happening transfe r reactions. The transfer is of a neutron from either a in cluster impact fusion, and it is the reason that those results deuteron or triton to a heavy nucleus; or a deuteron receiving are also anomalously large (that is, the rates at which these a neutron from a heavy nucleus. The transfer can go in either arecreated is anomalously larg¢) . direction. Again, the theory offers copclusions about why nuclear In that transfer, there are no neutrons released, but there physics can take place in these relatively heated regions in is nuclear energy released. However, it comes out in the form two places: inside of metals, in particular heated metals; and of charged particles of low energy. That obviates the biggest also inside of heated, high-density plasmas. If the density of difficulty-or resolves the biggest conflict in cold fu sion: the plasma is too low, you also pon't create enough of them. what we jokingly call the "dead graduate student" problem. These things, therefore, are happening all over, in a variety That is, if all of this heat is coming from the deuteron-deuter­ of anomalous experimental circumstances. In particular, on reaction (D-D), you would have had to have created so there is a very good chance that these reactions are going on many neutrons that you would have irradiated everybody to inside the Earth, as had been s�gested already by a number death. And you know you didn't do that. of people, but could not be squared with the standard nuclear The answer is, you don't do that, because those neutrons reactions, the standard D-D nuclear reactions. at that level are not there . There arestill D-D neutrons being One of those, an exciting one, is the recently reported produced but in small numbers. And those are seen by experi­ Soviet experiment, where they took little pellets of lithium menters as well. Let me summarize: The new physics here , deuteride and dropped them intp a container of heavy water

22 Science & Technology EIR May 31, 1991 that was inside a neutron detector, and they made neutrons. reactions, and therefore the ability to do something with That is a spectacular result, because it is created at tempera­ them, should be easily accessible. It is not complex, like tures of only a few thousand degrees. But it also tells you many other systems trying to release energy from the nuclear you don't need anything special like a palladium lattice to domain, which become either very large or very costly. make fusion at very low temperatures. The point here is From the technical point of view, our company is doing not to say there is not something special about palladium, a few things. One, we, of course, bave applied for certain because there is. There is a reaction that we list in our paper patents to take advantage of what looks like a clear path to that operates on a tau hydron-that is, a hydron created from an energy developing system. And we are actively seeking a triton-inside of metals, which reacts with the palladium strategic partnerships with large companies. We are really to release nuclear energy. So, the palladium is, in fact, impor­ not interested in small investments, because we think this tant in that set of nuclear reactions and is probably creating will quickly go from where we are now, to where we want the heat, or at least some part of the heat in those experiments. to be in a very short time. And, therefore, we are looking for Similarly, with titanium, there is a certain reaction with partnerships where people have more than money-where one of the hydrons that creates nuclear reactions in titanium they have a distribution network, a production network, and as well. a capability, if this path is really clear, of getting there fast. We also believe that the government should be interested The right conditions in these things, but may not be. They may not be able to There is an important point that I should bring up, and help out quickly enough, because I think if these things are thatis that the reactions we have identified so far in so-called correct, that we may be able to quiokly get to a place where cold fusion, we believe, are operating on contaminant-level industry is the primary player. We hope that is true. materials. That is to say, we have not used the right materials Those are the main points tha t! wanted to make. The yet to get large amounts of energy release. Furthermore, we topic is broad. The ramifications, of course, are very exten­ have not used the right conditions; that is, we don't want it sive. And, of course, you understand that at this point, this to be cold. We want it to be heated, because that form helps still is theory, but we have high confidence it is correct, to form the hydrons, and hydrons are the particles that allow because it is supported by many otherwise very strange obser­ the nuclear reactions to occur in larger numbers . vations. I should mention that there is evidence for the fact that these particles, these little compact particles, form-evi­ From the discussion with the press dence that is separate from any nuclear observations, just Q: To what degree does what you have found, or what you standard observations on the interactions of hydrogen with believe you have found, validate the findingsof Fleischmann metals. A well-known but little understood phenomenon is and Pons . . . to vindicate the position that they have taken the hydrogen embrittlementof metals and the very high diffu­ on cold fusion? sion rates of hydrogen in metals. It is almost certainly the Mayer: ...I am not trying to vindicate anything. I would case that that also is a solid state physics observation of the say that I believe they were mistreated in many ways by what existence of these compact objects, because it is these small has transpired. That's more a statement, really, about our objects that then can go through metals sort of unimpeded, country, than anything else. I am sorry to say that that is the compared to hydrogen itself, atomic hydrogen. The point is, case ....I believe ...I am making a sociological state­ though, that there are observations that now span a very large ment. The fact is that science proceeds by allowing informa­ number of areas in physics that can be simple results of the tion to flow out, to be criticized, and then, if it's not right to fact that these compact objects formed. Only one of those go away-not to try and make the people go away. The idea, observations is the observation of strange nuclear events. if it is okay, will survive. If it is not all right, it should There is a broader set of implications for that. disappear. But the fact is that more than that has transpired in this issue. And that is something I am sorry to have seen Reactor systems possible happen in this country. There are a few things we should now get to . One of the Reitz: We believe that the experiments that Pons and most important is that if these ideas tum out to be true, then Fleischmann did were good experiments. They did see new it is clear that raising the level of contaminants in the right effects that had not been observed before ....There are way could yield very large energies coming out. If those other experiments throughout the world that indicate the energies and those power levels can be sustained, still main­ same type of thing going on, or at least nuclear reactions taining a very low level of penetrating nuclear radiations, going on at moderate or low energies. But the Pons and then it seems that reactor systems would then become possi­ Fleischmann experiments were striking. And clearly they are ble, probably with very small amounts of shielding, which the ones that got us interested in it in the first place. We would be very important. think their interpretations of the specific reactions that they It also appears, if these things are correct, that these identifiedas cold fusion were probably not correct, although

EIR May 31, 1991 Science & Technology 23 at higher temperatures they probably would be. They said iments mentioned in our paper tllatgive evidence of a nuclear they thought they were the D-D reactions. I think they did transformation of the type that fred has described, that is, say something about there may be other nuclear reactions direct neutron transfer. And aatually there is quantitative going on, and that is basically what we are saying now: that evidence. One has a change in the isotopic content of palladi­ experiments that have been done so far primaril y are working um. And the other one involves a charged particle coming on the contaminants. And they are a different class of nuclear out of titanium afterbeing subjected to this low-temperature reactions than the conventional fusion reaction. environment to produce cold fusion. These are exactly what Mayer: What is certainly being observed at these very low we predict. These reactions could not occur without some temperatures are these transfer reactions. And it really isn't kind of neutral particle, of the hydron type, mediating this a fusion reaction. A fusion reaction in general means you type of effect. So, we do have some experimental evidence. form a compound nucleus, which then comes apart. This is It is indirect, but it is supportive, a reaction where a light particle comes in and a neutron jumps Mayer: It is quantitative. And it could not occur, so far as across the remaining gap. You don't have to fuse the whole we know, by other nuclear prooesses. And since it also, as objects. It sort of tears the neutron out of one nucleus and John said, could not occur witillout the formation of these puts it in the other. But it is still the case that the Pons and hydrons, it is very suggestive that that is what is happening. Fleischmann experiments led us to try and understand what Of course, by itself, it is not a direct confirmation. All of was going on, plus all of the other strange observations. this evidence is suggestive. The important point is that the We bring up cluster impact fusion because it also can be evidence is suggestive in a broad class of reactions. And ... explained on the same basis of physics. There is no necessity we are pleased by the fact that it is testable. It is not a general to make up anything different for all of these anomalous theory; it is very specific. It says: If this happens, then this observations, including the tritium coming out of the earth . is what you would see. So, it is testable, and with the tests, All of these things fall under this larger blanket of the forma­ if it's proven wrong, then it is jlust wrong. You have to go tion of this new class of nuclear reactions and hydron for­ out and try again .... mation. Q: You said you expect it to mature, in your words, fast, Q: To what degree can you empirically verify the existence and I gather go commercial. What does fast mean? of these particles? And to what degree does it rely on circum­ Mayer: You are going to put me on the spot. I would say stantial evidence and computer modeling? fiveyears . We have put down here five years to get things to Mayer: There is no direct observation, yet, of those parti­ the prototype stage. And I think: it would take another 10, cles. Actually, it may be very hard to make a direct observa­ typical of technology in fusion and to the society, another 10 tion. But this is the same phenomenon that is observed in to 15 years to grow it to the point that it impacted the society, many other areas of physics where a couple of particles get say, as a computer did ....There is a lot of experimental together, run around together for a little while, and come work to be done. But we know what to do. apart. That is a standard type of phenomenon. It is well known, for example, with positron-electron pairs. It is well Q: You also indicated you are IQoking for big money. known in elementary particle physics, as well. These are Mayer: . . . The point is that We it will take us a certain called continuum bound-state resonances, the more technical amount of money. The big money is not big money on the term. Usually in such resonances they are given names, and scale of other enterprises, on the scale of what this could we decided that since this is the only one that we know of mean. It is big money for our company, but it is not big that is more like an atom, to give it a special name-a hydron. money on the scale of say, big companies.

Q: How long have you been persuaded that this phenomenon Q: Is there danger of a meltdown? does in fact exist? Mayer: If the material gets too hot, from generating its own Mayer: Of course, when you don't understand something, nuclear energy, the reaction rate goes down. So, there is you have fluctuationsin belief. And we certainly had fluctua­ an optimal temperature at which this will operate, which is tions in belief, too; but, when I came back from the Santa Fe something like, nominally, 7,0000 or 8,0000 C-which, by meeting [in 1989], there were a number of things that I just the way, is also the temperature, approximately, at the center could not say were errors. One of those was the observation of the Earth. That may not be just coincidence, by the way, of all of this excess heat. That's the biggest signal, if you and that is a statement about geophysics. But ... there will, in all of these experiments. There is heat that is unac­ should be no problem with runaway; and meltdown is self­ counted for by other processes that are known. The second extinguishing, because, in fact, if it does melt and puddle, was the generation of Me V particles, for example, in a sense then it will cool to the point that it goes out. out of nowhere. So, the nice thing is, that we think it will not be dangerous Reitz: Let me mention one other thing. There are two exper- nuclear energy. It will be very forgiving.

24 Science & Technology EIR May 31, 1991 The reason I am so emotional. about this, is because many of us have experiencedthis negative, nasty, hostileposition that hasbeentaken in the face of something which is potentiaUy very, very important. It is a bad statementabout the s tateof sciencein theStates. United

Q: What would the fuel and the catalysts be if you were In fact the research focus, if this is correct now, is going to using it on a commercial scale? switch. It is going to switch ....We ll, there will continue Mayer: We are not sureyet . As John mentioned, we have to be a lot of this optimizing of reactions, but some of the a lot of experiments to do yet. We have outlined the broad focus now is going to be going to understanding hydron theory. Finding an optimal set of circumstances and materials physics, because that's the base of this, at some level. and operating conditions and the things you are talking about, By the way, I have to acknowledge anotherset of people starting and stopping and everything else, is in fact the thing who have influenced our thinking about these things. One we need some larger assistance with. Those are non-trivial group is James Vary and his group at Iowa State University. things. But the broad outline of how to get there, we have And we also have been strongly influenced in our thinking made clear. So, the point now is to get on with all of those by a number of the experimental groups. One of thosegroups issues, trying, first of all, to do two things. We would like is the group at Naval Research Laboratory. Another one is to see those things being done simultaneously: optimizing the group at Texas A&M. And a variety of the other experi­ materials, dealing with the engineering aspects, starting and ments that have come along, that have been very, verypower­ stopping, the accelerator and the brake; and finally, har­ ful results. nessing this in a way to make it very easily. Reitz: Some suggested materials which we think are op­ Q: To contrast your perception of the evidence of cold fu­ erating at the contaminant level are listed in the paper. These sion, which you feel so strongly about, with the perceptions may not be the finalon es. which seem to be running wild on the negative side, how Mayer: Nor the only ones. did you come to the conclusion that cold fusion is a solid Reitz: On page 2 there is a list of at least some of them. But phenomenon? they still might have to use palladium or titanium metal, as Mayer: Well, I am primarily an experimentalist, so, when a background metal. I had looked at the data, I decided ,there was no way that all of these things could have been either hoaxes, which some Q: There might be something you don't even know about? people have suggested, or incorrect, which some peoplehave Mayer: That's right. In fact, let me just say, there are proba­ suggested. Finally, you have to believe that the data are bly more things that we don't know about, then we do know telling you that nature is offering up something to be under­ about. stood. So you have to either understand it or findyourself, if We have a broad outline. What we have done is that in you are of such a mind, saying this is all impossible, as some some sense we have all been in a dark room, we turned on people are saying. the lights a little bit. Now we can look around. So, in that Reitz: And of course, the data wasn't all from one laborato­ sense we have provide a way to sort of steer experiments, ry , though it is true that the initial work came from the two maybe. And the other thing is, if these things are incorrect, Utah laboratories, but there are now more than 60 labora­ we will know that fast. And that's the whole point in research. tories worldwide that have seen these things. They just can't If you have a new idea, you do want to get to the place where be artifacts, anymore. it is testable, quickly, so, again, you don't waste your time. Mayer: There is the larger picture, and that is, there are And that's another reason for bringing the information to the anomalies in other areas which are very similar. And these public at large. have been pointed out as well by researchers who are in A number of people have said: "Why don't you just be this field. The anomalies in geophysics are substantial. They quiet and run to this person or that person?" The answer is, can't be explained in some simple way. And so, therefore, it will take too long that way. This way will be much faster. the fact that one set of ideas can bring some coherence to this The major thing we want to do is makeit work. We want this whole picture to us is a very important point. It is well known, to be an energy source. If there is an energy source here, for example, that the Earth's heat; when you look at it from which we think there is, let's get it to work. And let's make the point of view of resulting from standard, long-lived radio­ it happen quickly. And that's what we are going to do .... activity-you have ur�ium and tQorium-those alpha parti-

ElK May 31, 1991 Science & Technology 25 cles from that decay produce helium, which diffuses out of holding press conferences, I am just wondering, why not in the Earth . The amount of helium that is coming out of the your case simply wait for experimental data supportingit and Earth is very inconsistent with the amount of heat coming proceed with your business plan? Why hold a press confer­ out of the Earth . So, if you are a geophysicist, then you say, ence now? I am a little uncertain. well, what's going on here? Mayer: I want it to happen faSt. If I am wrong I want that You have to conjure up some other mechanism. But that to occur; I want it proven. Just let me say, the other way you see--connected with other funny phenomena, like hav­ takes a long time. We have tried to interest certain large ing a lot of helium-3 and tritium coming out of volcanoes­ institutions by logic, and it has not worked out real well. So, says there looks like there are nuclear transformations going what I am saying is, I want to go in a direction in which on in the Earth. But you know that the Earth can't be at the something will happen. temperatures required to produce ordinary nuclear reactions, the standard, high-temperature nuclear reactions. So, I think Q: The press has been so hostile, especially the New York at some level, you are forced to conclude that there are some Times. Do you see this refiected,in academic circles? other types of nuclear reactions going on. And we thinkthose Mayer: I think academic circles have been carried right are all relatively thermal nuclear reactions taking place at along with the whole stance. In fact, to be honest, I am a only a few thousand degrees. little bit ashamed of some people, who I felt would be more There are a lot of these things that I think, once this open-minded and really more discerning about how they set of ideas becomes clear, will come out. And there are made decisions. more of these anomalies that are around, and we presented a few in our lecture. There are the observations of a lot Q: At least "the jury is still out'l would be agood attitude? of helium-3 in technical metals, metals that have been Mayer: Right. It would have been good to say at least, "the processed in laboratories. And this has also been pointed jury is still out." I was very skeptical in the beginning, too. to by other researchers in cold fusion. It is not just we But then when the data started pointing up, and it didn't who noticed that. matter what other people said,. the fact was that the only argument that people had was ·that you can't get past the Q: You seem to be suggesting, if this isn't an oxymoron, Coulomb barrier. But that is just a calculation. common scientificsense supports the notion of cold fusion? Mayer: Let's becareful of the words now. The reaction that Q: Arithmetic? is dominating some of these results is not a fusion reaction. Mayer: It is just arithmetic. And the answer, "arithmetic," And when it works best, it is not cold. So, I am trying to is important after you know what physics is going OR . Not make sure we understand the distinction. The point is these before. If it is something you don't understand, you can are nuclear reactions at moderately lukewarm temperature. conclude something from the arid\metic, but the chancesare, It is not cold, but the point is also, it is not fusion in the it's going to be wrong ....The reason I am so emotional standard sense that you would think about it. But, what you about this, is because many of us have experienced, with our are saying is that common sense would dictate that something colleagues, this negative, nasty, hostile position that has been like this must happen, that's because we have tried to put this taken in the face of something which is potentially very, very into a context which did explain a lot of the anomalies and important. It is a bad statement about the state of science in in a way that spanned those different anomalies. And it's the United States. again that, which we think gives a lot of strength to these A fellow over here at MIT failed to get his tenure, because arguments. he expressed some sympathy. These are veryimportant phe­ nomena, and they don't come along that often. A lot of ones Q: Recognizing that science is not a democracy, you don't come along that are suggestive, that don't tum out. I think win because you get the most votes, you win because you people kind of cut their teeth on shooting those down. When are right, nonetheless, how do you account for the fact that so something really big and really important comes along, I many people have.so summarily rejected Pons-Fleischmann? think a lot of people keep that reflex going. And it takes the Mayer: I would say the following: As I think I mentioned kind of discipline and kind of care to check these things out. before , I think that is rather more a statement right now about Most of them don't tum out. This one did. our society, and about a certain closed-mindedness which occurs; I am not sure why, or where that happens, whether Notes it is in our science education, or what. It seems to me you I. The paper authored by Mayer and �eitz, "Nuclear Energy Release in can't close your mind to the data, and I think a lot of people Metals," was published in the May 19!t1issue of Fusion Technology, a journal of the American Nuclear Society, p. 552. The paper was received have. I would say that's where I see a major problem .... ' by the journal Oct. 16, 1990. 2. See R.J. Buehler, G. Friedlander, and L. Friedman, "Cluster-Impact Q: Given the history of cold fusion and criticisms of people Fusion," Physical Review Letters, Sept. 18, 1989, p. 1292.

26 Science & Technology EIR May 31, 1991 Overpopulation Isn't Books Received Killing the World's Forests- the Malthusians Are The Commanders, by Bob Woodward, Simon and Schuster, N.Y., 1991, 398 pages, hardbound, $24.95

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Geometry, Proportion, and the Art of Lutherie, by Kevin Coates, Oxford University Press, N.Y., 1991,

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EIR May 31, 1991 Science & Technology 27 TIillFeature

'Free trade': worst threat to U. S.A. since Confe�em, cy by the EIR Economics Staff

The proposed North American Free Trade AgreemeJ!lt (NAFTA) represents the gravest threat to the existence of the United States sinc� the pro-free trade insurrec­ tion of the Confederate slave states in 1859-60.Posed again is the issue that freely associated labor, cooperating under conditions of political self-government, is incompatible with the despotism which spreads, like a cancer, with the usury practiced in the name of "freetrade . " Accept, or tolerate, the proposed North American FreeTrade Agreement, and the proposed content of the Uruguay Round of the Geperal Agreement on Tariffs and Trade (GATT), and it will not be too long before the slavery and genocide imposed as a consequence on Third World countries, will be brought back to the United States itself. The agreement is presented by its proponents as largely a matter of foreign policy. President Bush has argued, for example, that the freetrade agreementwith Mexico will actually benefit the United States, since increased exports from the United States will create more jobs internally. Similarly, he and the economic and trade officials in his cabinet, like Commerce Secretary Robert Mosbacher and Trade Representative Carla Hills, insist that successful completion of theGATT round will bring nothing but benefits to the United States, and will do so by restoring equality of competition against trading partners, like Germany and Japan, which erect unfair "barriers" against the United States. This is what Ronald Reagan used to refer to as "leveling the playing field," and wbat lies behind the constant propaganda theme of restoring America's so-called "competitiveness." Both pacts do indeed have foreign policy consequences. But the focus is intentionally misleading, and deceitful. The policies !are , of course, of foreign concern. However, the benefits which will purportedly accrue to the United States are disinformation, intended to disarm and neutralize those who would findthem­ selves opposed, if they knew what was going on. The rhetoric employed is de­ signed to obscure the reality that the same methods directed against "foreign

28 Feature ElK May 31, 1991 FIGURE 1 FIGURE 2 Hourly compensation for production workers Average wages versus debt outstanding in manufacturing industries (thousands U.S. $)

$18 $60

$16 $50 $14

$12 $40

$10 $30 $8

$6 $20

$4 $10 $2

$0 $0 1975 1982 1989 1961 1968 1975 1982 1989

[I Manufacturing • National average • United States rum Germany � Japan o Debt per capita

Source: Bureau of Labor Statistics, unpublished data, September Source: Bureau of Labor Statistics; Flo w of Funds, Federal Reserve 1990. System . competitors" of the United States, are also directed against cheap U.S. labor, which is to be used as a battering ram the population of the United States itself, and will have the against, particularly, Germany and Japan, to prop up the same intended results, namely, the enforcement of brutal usury system of British and American banks. austerity against living standards and remaining productive capacity, accelerating tendencies toward genocide against What NAFTA will do the poor and disadvantaged, and toward slave labor, such as Within the U.S., the targets of the proposed NAFfA the expansion of prison system work programs, the revival agreement are threefold: there is, firstly, the remnants of the of workfare-typel programs for welfare recipients, and then, unionized labor force in especially the manufacturing and ' "make work" efforts, along the lines of the 1930s Works construction industries; secondly, there will be the effect on Progress Administration (WPA) for the so-called "chronical­ the employed population as a whole of both another round ly unemployed." of austerity against productive capacities, combined with an Anyone old enough to have lived through the 1930s overall lowering of wage-levels throughout the economy; would recognize what such a policy package involves. These third, there will be a tremendous increase in the tens of mil­ are the kinds of policies adopted, under the insistence of lions of Americans, 30% and more, who have effectively financial creditors, to deal with depression economic condi­ been thrown on to the scrap heap" deprived of any future, as tions and bankruptcy. So it is with the proposed NAFfA and a consequence of policies already in force. the GAIT round. Just like the policy for Mexico, it is not a It is not possible to forecast With any precision exactly trade package, nor an export promotion package, nor an what havoc the agreement to be negotiated with Mexico will employment package, but wage-gouging to generate the new wreak, if the "fast track" procedures are extended, as per margin of loot required to shore up a bankrupt financial sys­ Bush's demands. It is possible to identify the general process tem. Mexican slave labor is to be set into competition with which will be set off, because it is already in the works.

EIR May 31, 1991 Feature 29 this way: "Let's say we now make about $100 billion in real capital investment in the U.S., in plant and equipment annually. Mexico, under NAFTA, could easily get 10% of Confederacy was that. That's $10 billion the first year; if it looks successful, say even $15 billion the second year. Then who knows, the basedon free trade third year .. .." The sectors which would be affected by such runaway shops are known. Top on the list is the automobile industry, The Constitution of the Confederate States of America, second is the textile and apparel industry, and third , what which was adopted March 11, 1861, contained free comes under the heading of electronics and household appli­ trade articles. Its Congress had no power to impose ances. Then, fourth , in a slightly different way, the domestic tariffs, nor did it have power to appropriate money fo r U . S. construction industry. . internal improvements intended to help commerce. Its As so often in the postwar riod , the auto industry is the Constitution was written with the intent of establishing Pe pace-setter. About to announc� , at this writing, net losses of an empire based on a slave economy, and fr ee trade $3 billion . worldwide for the �rst quarter of 1991, General was at the centerpiece of the confederacy. Excerpts Motors (GM), Chrysler, and Bord, working with the banks, fo llow: were in the initial steps of re�pening their new three-year contract with the United Auto l, Workers (UA W) union. The Sec 8: The Congress shall have power- threat is clear. The unions are ro give up the income security 1) To lay and collect taxes , duties , imposts, and and health insurance compone ts of the contract, and accept excises, for revenue necessary to pay the debts , provide * wage cuts, or face the flight o� investment and employment for the common defense, and carry on the government to Mexico. The textile and apparel industry is next for the of the Confederate States; but no bounties shall be firing line. This is what happe ed during 1981 and 1982, at granted from the treasury; nor shall any duties or taxes , the height of the Federal Reserve Chairman V olcker high on importations from foreign nations be laid to promote interest rate atrocity. Then, the industry reopened contracts or foster any branch of industry; and all duties imposed in order to lay off workers and cut back its wage bill. and excises shall be uniform throughout the Confeder­ ate States . Reopening wage contracts 2) To borrow money on the credit of the Confeder­ GM's president, Lloyd Reuss, alluded to this in a press ate States. conference April 15 in Detroit, when in response to press 3) To regulate commerce with foreign nations , and prompting, he let slip that GM. may reopen its contract with among the several States, and with the Indian tribes; the UAW. GM spokesmen off the record are less bashful. but neither this , nor any other clause contained in the With $5 billion in losses over the last nine months, the com­ Constitution shall be construed to delegate the power to pany cannot, it is said, afford .the more than $4 billion per Congress to appropriate money for any internal improve­ annum job security and health package it is committed to. ment intended to facilitate commerce; except for the pur­ They point to the following: OM production worker wages pose of furnishing lights, beacons, and buoys, and other run at $31.30 per hour. After the government and insurance aids to navigation upon the coasts and the improvement companies take their cut, the workers are left with $16.50 of harbors, and removing of obstructions in river naviga­ per hour. GM has 42,000 workers employed in Mexican tion, and in all which cases, such duties shall be laid on maquiladoras. They average $1.10 per hour. As they say: the navigation facilitated thereby, as may be necessary "The discrepancies are huge. Even with this subsidy from to pay the costs and expenses thereof. . . . Mexico, if auto sales in the U.S. keep collapsing, we will not be able to produce cars in the United States." Chrysler is perhaps in worse financial shape. Now, the company is under pressurefrom the govemment's Pension Ben­ Overall U.S. capital investment is in the range of $200 efit Guaranty Corp. Chrysler has $3.62 billion in unfunded billion per annum. Of this it can be assumed that about half pension liabilities, which aredue, but cannot be paid. Chrysler, is actually for investment in plant and equipment. The pro�o­ like GM, is beginning the process of reopening its contract. nents of the Free Trade Agreement start from the assumptIOn The textile industry , for its lPart, fears that with the elimi­ that under the first year of an agreement going into effect, nation of remaining import tariffson certain classes of goods 10%, or up to $10 billion could be pulled out of the U.S., produced in Mexico, the industry in the U.S. will be wiped and in the name of investing in Mexico, be diverted to the out, perhaps in its entirety. account of bankrupt U.S. banks . One such advocate put it Auto and textiles, along with electronics, arethreatened

30 Feature EIR May 31, 1991 TABLE 1 TABLE 2 Employment and wages of targeted sectors Projected reduction in U.S. wages under in 1990 NAFTA (billions U.S. $) Workers Weekly Wage bill (1,000s) wage (billions) Year 1 Year 2

Total private 74,563 $346.04 $1 ,341 .51 Auto 1.9 2.7 Textiles, etc. 2.0 2.7 Blast furnace/basic steel 20B 645.98 6.9B Construction 10.0 13.0 Fabricated metal products 1,039 447.28 24.17

Motor vehicles/equipment 61 1 619.46 19.68 Sources: Employment and Earnings; own elaborations.

Textile mill products 601 320.80 10.03 Apparel/other textile products 863 239.88 10.76 employment side, for the purposes of argument, let's apply Rubber/miscellaneous plastics 671 402.37 14.04 the same ratios of contraction being promoted regarding capi­ tal investment. The textile industry would lose 140,000 of Source: Employment and Earnings, January19 91 , p. 238·9. its 1.4 million jobs in year one, and about 190,000 in year two. The automobile and related rubber and plastics indus­ tries would lose 120,000 jobs in the first year and 170,000 by the banks with elimination through substitution of slave­ in the second. labor in Mexico. With the construction industry , it is differ­ Construction would shed, or replace, about 400,000 ent. The bankers have Mexico demanding the right to freely workers in the first year, and another 540,000in the second. export "services," as part of their "free trade" looting . In this This gives the total job losses for just those three indus­ case, "services" means labor. Although at this point the Bush tries, if one makes the same assumplionsthat the Bush crowd administration is insisting that there will be no opening to does , at 660,000 and 1 million in the firsttwo years, respec­ Mexican migrant labor under NAFfA, the construction in­ tively. dustry is planning to replace labor in the U. S. with imported This is the agreement which the same people publicly ' slave, or cheap labor from Mexico, in the name of "free insist will not result in job losses in the United States. trade in services." On April 15, one hundred leaders of the Let's assume, for the moment, that the Bush administra­ Association of General Contractors met with Bush to endorse tion is right on this point, that no jobs will actually be lost. the "fast track." Their leader, Marvin Black, said on that This could only occur if U. S. wage$ were drastically reduced occasion: "Banks are in the grip of fear that stops them from towards Mexican levels. (The political reality will probably making loans for construction projects. The message is clear. be some combination of dramatic Job loss and wage goug­ . . . The Age of Abundance is over." Black went on to dis­ ing.) As one NAFfA ideologue succinctly put it, U.S. com­ cuss the importance of "discipline," and ending "confronta­ panies will tell their unions: "We don't want to move to tion," like those between management and labor, in the com­ Mexico. But in Mexico they want �7¢ an hour and you guys ing "Age of Scarcity." want $15. Now you're going to have to meet us half way, or Where does this leave the United States? Table 1 summa­ at least part of the way." rizes the employment and wages of targeted sectors . The In this fashion, wage reductioq on the order of one-third construction industry adds another 4 million workers to this to one-half could occur under NAFrA. If such a reduction list, should massive migrant labor flows occur under occurred at about the same rate as the mentioned capital NAFfA, and another $100 billion in annual wages. shifts, i.e., about 10% in year on¢ and 15% of the reduced amount in year two, this gives an overall reduction in manu­ Shifts in investment facturing-sector wages of goods producers of about $30 bil­ Let's assume that there is intended to be a shift of 10% lion in year one and $40.5 billion in year two. of the investment budget to Mexico in the first year of an For the targeted sectors, it wOllld look as seen in Table agreement, and a 15% shift in the second. Then, in year 2, and overall estimates of cumulative looting are seen in one, approximately $10 billion would be looted from what is Table 3. called the U.S. capital investment budget. In year two, this Goods producers in the manufacturing sector only make would rise to 15%, or about $13.5 billion, of the remaining up 11% of the entire labor force. The 1.4 million workers in $90 billion. the textile industry make up more than 10% of the manufac­ Although again no precise forecasts are possible on the turing total . The workers in the auto and rubber and plastics

EIR May 31, 1991 Feature 31 put forward as the principal advantage for investing inside TABLE 3 the United States. Gone are the days when it was skill levels

Projected cumulative looting of U.S. sectors and productivity which were paid a relatively fair price. Now under NAFTA cheap U. S. labor is being set into competition against Germa­ (billions U.S. $) ny and Japan, just as Mexican slave labor is set against U.S. workers . Year 1 Year 2 The U.S. abandoned the policy of high-paid labor in Investment 10.0 23.5 favor of maintaining the claims of usury. Investment in tech­ Manufacturing wages 30.0 40.5 nological advance and maintenance of infrastructure was cut Construction wages 10.0 13.0 back, and productive capacity was shed. Germany and Japan, as the wage differentials attest, maintaining a premium on Total 50.0 77.0 wage-earners' income, did not follow the same path. Now we say, they refuse to play on a level playing field, because Sources: Employment and Eamings; own elaborations. they refuse to follow our destructive course. The policy dif­ ference between the economies of the United States and Ger­ industries also make up more than 10% of the total . This many and Japan can be summed up in one four-letter word: estimate assumes that almost one-fifth of manufacturing debt. Usury has wrecked the United States. workers in auto and textiles will lose their jobs in the next By the end of 1990, the sum of credit market borrowings, two years ,·and almost one-quarter of the workers in the con­ or the total indebtedness ofthe U. S. economy, for all borrow­ struction industry. This is almost 10% of the remaining pro­ ers , could be estimated at $14 trillion. The basis for the ductive workers in those three sectors alone; 940,000 of the estimate is provided by the Federal Reserve's "Flow of 4 million construction workers , 330,000 of the 1.4 million Funds" data series. Out of this total, federal , state , and local textile workers, and 290,000 of the 1.3 million workers in governmentsaccount for more thl$ $5 trillion; business, both the automobile and related industrial employment in the financial and non-financial, accounts for another $5 trillion; country are targeted. and household borrowings for$3 .8 trillion. The U.S. popula­ This is a recipe for upheaval and chaos inside the United tion and economy have been sacrificed on the pagab altar. �f States . The spill-over effects , into the work force as a whole, maintaining the claims of that mO\lntain of debt. and through the increase of the immiserated millions who Figure 2 on p. 29 compares tlile average wage",ofgOods­ have been thrown out of the work force, will be the combina­ producing workers in manufacturil!lg, the average salaries and tion which pushes the U. S. over the edge . earningsof all employed workers , and the debt of the United States, expressed as a per capita figure. Through 1975, itwill Wages and debt be seen, the level of indebtedness �nd the level of the average U.S. wages used to be the highest in the world. The wage packet were roughly identicaJ. Since 1975, and especial­ wages paid used to buy the world's most technologically ly since the Volcker rampage which began in 1979, that pat­ cultured and productive labor. This is no longer the case. tern has been broken. The indebtecjlnessof the country, in per Subject to forced reduction through brutal austerity for years, capita terms , has doubled twice si�ce 1975. That, of course, by the end of 1989, U.S. hourly wages in manufacturing would mean, interest rates staying the same, that the claims were lower than the rates which prevail in Germany, with of debt against the population an� economy doubled twice Japanese workers catching up fast. By the end of 1990, U.S. as well. But interest rates did not stay the same. Thanks to manufacturing wages were, on average , 10-15% lower than Volcker, the deregulators, and the elimination of state and those in either Germany or Japan. local anti -usury laws, the claims of interest were permitted to Figure 1 on p. 29 compares hourly compensation for grow faster than the total mass of l1ebt was growing. goods-producing workers in the manufacturing industries of What happened to the econom� is no different than what the United States, Germany , and Japan. The data are taken happens to an individual or a company when interest charges from an unpublished series collected by the U.S. Bureau of are permitted to increase beyond the capacity of earnings Labor Statistics. Germany, at rough equality, at least in terms generated to maintain the debt service. The economy was of dollar equivalent wages in 1975, catches up, and then ex­ bankrupted, driven into the ground, as capital assets and ceeds U.S. hourly rates. Japan is gaining in the same way. labor productivity, developed over centuries, were "asset­ This is a shift of historic proportions, since, in the totality stripped" to service the growing mass of debt. of the postwar period, U. S. labor was supposed to be the best The debt, like a cancer, wasn '. supported by any net new paid, because it was the most technologically cultured and creation of wealth inside the United States. It was supported equipped, and therefore the most productive. Now, as it was by looting of tribute from captive Itadingpartners and econo­ stated in the New York Times of April 13, 1991, it is the mies overseas, by looting against the U.S. population and relative cheapness of U.S. labor, in dollar terms, which is economy, and by the creation qf an artificial asset base

32 Feature EIR May 31, 1991 that magically created collateral, only to find, between 1980 FIGURE 3 and 1983, that half or more of the increased valuation of their Total net tangible assets per capita in the U.S. land had evaporated as suddenly as it appeared, and that their economy accumulated debts could not be serviced. The same pattern (thousands U.S. $) was then repeated with the savings and loan institutions, between 1982 and 1986, with their "Sun Belt" states' real $70 estate and construction lending, and then for a thirdtime with the so-called corporate sector, during the takeover binge of 1985-89. Those chickens are now coming home to roost. $60 Through usury's wreckage of particular sectors, the whole ::D mass of the faked assets against which the debt mass. was m secured has continued to grow. "tI $50 ::D Composition of the work force Figures 4 and 5 depict certain of the consequences of this $40 pattern, where it affects employment and earnings. Figure 4 shows a more detailed account of the evolution of employ­ ment over the period since 1961, dividing the labor force $30 into goods-producing workers-that is, operative and related employment in farming, manufacture, construction, and transportation-and comparing such employment with non­ $20 productive employment as a whole. So, goods producers decline overall from rather more than 30% of the work force to about 20%; goods producers in the manufacturing sector $10 decline from about 17% of total employment to about 11%; and the farmers almost disappear entirely. That can be con­ trastedwith the growth of nonproductive employment. $0 Figure 5 applies the same breakdown to the country's 1961 1968 1975 1982 1989 wage bill, such that, in the comparison between the two, what is identified is which portion of the labor force receives • Land g Residential structures what portion of the nation's total wage packet. � Plant and equipment • Other reproducible assets In gross, at this level, it appe3lfs that the service sector and the producers are allotted dollan for dollarcompensation, though the service sector portion bas been increasing. The Source: Balance Sheet of the U.S. Economy, Federal Reserve. composition of the wage earnings �ppears to follow the shift in employment closely. But something else has been going against which the mass of debt could be secured. on. The growth of this artificial asset base is depicted in Figures 6 and 7 restate this in another way. In Figure 6, Figure 3. This is a representation of the official version of the division of the employed work force is organized such thenet worth of the tangible assets of the United States, again that the non-supervisory and government employees in the expressed in per capita terms. That is to say, if the net worth service and productive sector are separated out. Thus here, of these tangible assets were divided among all citizens, productive and services indicate all non-supervisoryemploy­ everyone would have a nest egg greater than $60,000 to ment, whether in actual production, or in overhead functions their names. The market value of land comprises about one­ in those sectors . Thus, of the employed labor force, rather quarterof the total; the market value of residential properties more than 20% are now seen to be in supervisory functions another quarter; and the market value of all non-residential in the private sector, and more than 10% in government plant and equipment another quarter and more. It is not neces­ employment. sary to count how many people you know with $60,000 in This breakdown can be compared then with Figure 7, assets to theirnam es, to know that the whole thing is a hoax . which identifies more precisely where the wage and salary But there has been no real increase in the net worth of packet ends up. Thus, the rather more than 20% of the em­ such assets. Rather, what has been done to the economy as ployed work force who are identified as in supervisory func­ a whole is what was done to the farmers between .1970 and tions, average $80,000 per year in earnings. None of the 1980, when the value of their land was increased about sev­ remaining 80% of the employed work force makemore than enfold, and they were encouraged to·borrow on the basis of $30,000, when earnings by sector are divided by employ-

EIR May 31, 1991 Feature 33 FIGURE 4 FIGURE S Composition of the U.S. work force: Share of the total national wage bill productive operatives versus non-productive (percent of total work force) employment (percent of total work force) 100%

100% 90%

90% z ,', ' , ' ., 80% .... o Z z 80% . . .. 0 70% Z � ::JJ 70% � 60% o ::JJ C 0 60% c: C 50% (") c: --I 50% (") --I 40% < m 40% 30%

30% 20%

� 20% ::a o 10% c c: 10% � 0% m 1961 1968 1975 1982 1989

0% 1961 1968 1975 1982 1989 • Agricultural lliillI Other services

Manufacturing Sales • Agricultural B&I Other services • 0 Transport • Manufacturing 0 Sales m Construction m Transport � � Construction Source: Employment and Earnings, Bureau of Labor Statistics.

Source: Employment and Earnings, Bureau of Labor Statistics.

ment. Manufacturing employees are reported to average just here. In 1961, 1968, and 1975, average earnings of retail over $20,000 per year, while retail clerks are allotted an clerks exceeded those of farmers. average of $10,000 per year. Average wages, which reflect These days, the level of$15.20,000 per annum is roughly the influence of the 20% who are paid about $80,000,just the poverty line. It is the level of income which has compelled exceed the wage for manufacturing workers. These mislo­ 90% of the married couples who are in the labor force to cated priorities are further reflected in a series not shown both work. One wage packet at these levels is not enough to

34 Feature EIR May 31, 1991 FIGURE 6 FIGURE 7 Composition of the U.S. work force, by area of Average annual earnings ofi U.S. workers, by employment occupation (percentof total work force) (thousands U.S. $)

100% $90

90% $80

80% $70

70% $60

60% $50 50% $40 40% $30 30%

$20 20"4

10% $10

0% $0 .....L...J�LlO..oC 1961 1968 1975 1982 1989 1975 1982' 1989

Goods production � Supervisors Retail trade Avera a • (excluding supervisors) � � � q � Goverment • Manufacturing • Managiement, and supervisors II) Services Source: Employmentand Eamings, Bureau of Labor Statistics. Source: Employmentand Eamings, Bu+au of Labor Statistics.

support a family, or even two people. The bulk of the em­ "fast track" North America Free Trade Agreement will ac­ ployed work force is thus on the edge of joining those whom complish. this rapacious usury system has thrown on to the scrapheap. The proposed NAFfA agreements will push those workers The U.S. depression over the edge, for they arethe ones targeted for wage cuts in For the past generation or so, the U.S. has insisted on the region of 30-50%. following policies which have, cumulatively, pushed it over None of this includes the uncounted unemployed, esti­ the edge, in the sense that the U.S� is no longer capable of mated at some 17-18% of the labor force in EIR studies, producing, out of its own resources of qualifiedlabor, stocks when what the governmentcalls "discouraged" workers and of plant and equipment, i.e., the means which would enable those no longer looking for work areincluded. Recent studies the country to recover and grow. Germany and Japan have show that only 37% of the nation's unemployed qualify for not been so insane as to impose this course on themselves. unemployment benefits, given changes in qualification pro­ Now, Germany, as the center of the still-functioningecono­ cedures which were put into effect in the Reagan years. my of Europe , representsthe primary, and Japan, the second­ Reduce these wage-levels even slightly, add even slightly ary, remaining islands of productive potential in the world to the actual numbers of unemployed, and a kind of chain economy as a whole. Their capabilities are what remains reaction will be set into motion, as the millions who have after the destruction of the developing sector, through Inter­ been pushed to the edge, under the usury regime of the last national Monetary Fund (IMF) conditionalities policies, the years, arepushed over. That is exactly what George Bush's breakdown collapse of Marxist colllectivism in Eastern Eu-

EIR May 31, 1991 Feature 35 as a leading developed economy. It is notable that this level FIGURE 8 of throughput is more than double that maintained in the Freight moved per capita U.S., under stagnating conditiohs, from the mid- 1960son. (tons) U.S. reality: declining production 60 The totals are, of course, misleading in certain respects. The composition of the goods moved through the economy 55 Japan"", doesn't remain constant as the stagnating U.S. value might imply. Indeed, the composition of the tonnage shipped inside 50 the U.S. has changed dramatically over the past 30 years, 45 favoring an increased share for heavy, bulk goods, such as fuels, whether oil or coal, and grains intended for the export 40 market. Manufactures and semi-finished goods have de­ i. clined relative to the increasing shipment of bulk goods. So, 35 • • while the appearance is one of stagnation, the reality is of : . • • decline and decreasing quality of goods moved through the 30 : .... system. Proportionally, manufactures and semi-finished •• 25 goods count for more in the freight moved through Germany and Japan. 20 On the other side, however, opposite to the United States, which has become import dependent in multiple different 15 sectors of the economy, Germany and Japan are organized to export. They have to, to survive. In both cases, exports of 0+1 I I I I I I I I I I I I I I I about 30-40% of total finished and semi-finished goods are 1960 1965 1970 1975 1980 1985 required to generate the wealth needed to pay for the raw materials and other inputs which keep their economies func­ Sources: Eno Foundation for Transportation, Japan Statistical tioning. The impulse for technological advance is maintained Ye arbook; International Road Federation; own elaborations. under the pressure of continually improving production tech­ nology and productivity to lower the economic cost of raw rope, the Soviet Union, and China, and the depression bank­ material and semi-finished input requirements, relative to the ruptcy of the English-speaking part of the advanced sector. necessity of continuing to export. That is what the United What is the difference between the U. S. and the other States should have been doing too, instead of fastening, as a two? Over the last 25 years, the United States, in the name parasite, on to the rest of the world. of the post-industrial society-the crazed idea that our soci­ Figure 9 looks at the labor forces of the three countries ety has moved beyond the need to actually produce the im­ and shows that part which is employed in goods production, provements which permit continued human existence-has i.e., involved in production and ancillary services, such as stopped being a front-rank producing nation. Germany and transportation. Japan have not. The U. S. is locked into depression. Germany In each of the three economies, the productive share of and Japan are not. the total labor force has declined. In each also, the larger part Figure 8 compares the total freight tonnage moved, in of the decline can be accounted for by a combination of all modes, per capita, in the three countries. The idea here is shrinkage of the agricultural sector, and the policy of that the total freight moved represents a useful approximation allowing employment as a whole to grow faster than employ­ of the total throughput of goods in the economy as a whole. ment in productive activity. That notwithstanding, the level The total freight tonnage includes the imported raw materials of productive employment maintained in Germany and Japan which, in both Germany and Japan, are necessary for the till now, is comparable to what obtained in the U. S. 25 years production process, and the exports which areshipped out to ago, with the U.S. permitting about half of the proportion of generate earningsto pay for imports and improvements. the work force of a generation or so ago, to be so employed. It could be assumed, for example, leaving aside the num­ If you double the proportion of the work force to be bers of people in each economy (the U.S., at about 250 productively employed in the United States back to the level million, is more than twice the size of Japan at 120 million, of 30% or so, 10 and behold, most of the inputs required to which, in tum, is about twice the size of the population of support production would also be doubled. Add a proportion the area of the former West Germany), that the plateau of production for net exports. Then, for example, it would reached by both economies in the firsthalf of the 1970s does also be possible to argue that the throughput of goods in the representthe level of throughput of goods required to qualify U.S. economy ought to be about where it is for Germany and

36 Feature EIR May 31, 1991 FIGURE 9 FIGURE 10 Workers employed in goods production as a Automobiles produced per daplta percentage of total employment (number of automobiles) (% of total) 0.08 • 60% Germany . \ .. .. 0.07 • •• • • 50% .-.: 0.06 • • •• •.. •. \ .- Japan . - 40% • • • • 0.05 • .. •

30% 0.04

20% 0.03

0.02 United States / 10%

0.01 0% 1961 1968 1975 1982 1986 O �rT�rr�-r�'-rT�-r�'-rr��rT�� 1960 1965 1970 1975 1980 1985 • United States � Japan II Germany

Source: Japan 1991: An Intemational Comparison. Keizai Koho Source: United Nations Organization. Center, Japan.

Japan. The U.S. ought to be adopting policies which inake tiles, as well as steel, are taken into account. Both figures that type of approach possible, policies which are diametri­ reflectthe successive phases of the collapse of the U . S. econ­ cally opposite to everything represented by the proposed omy: from the shift which began in 1965-67 out of production NAFfA agreements . and toward the post-industrial utopia, through the economic effects of the monetary chaos of the late-1960s which led Heavy industry on the wane into President Nixon's Aug. 15, 19'11decision to remove the The same case applies to particular industries. Both U.S. dollar from the gold standard, through the effects of the first auto and steel are prominent among those which have de­ oil hoax of 1973-74, and into the brutality of Paul VoIcker's manded protection from imports of competitor nations, high interest rate austerity policy of; 1979-82. whether in the form of import quotas, or tariffs on the im­ It will be seen from both charts that, talk of any sustained ports. Auto and its suppliers now lead among those threaten­ period of economic growth over the last 10 years notwith­ ing to pull out for Mexican slave-labor camps. Figures 10 standing, the U. S. never recovered the levels of functioning and 11 compare production of automobiles and steel, per which characterized the periodbefore V oIcker, and that those capita, in the U.S., Germany, and Japan. They tell the same years represented nothing but stagnation and decline from story as that shown in Figures 8 and 9. the levels of the early to mid-1960s. Apart from the recovery from the recession of the late 1950s, which was launched by President Kennedy in 1961, Protection from whom? and the brief continuing effects of that recovery through the Just whom the automobile and steelindustries supposedly mid-1960s, the United States has either been stagnating or in ought to be protected from, then, becomes a peculiar ques­ a process of decline ever since. The automobile industry is tion. Figure 10 shows, in the case ofithe automobile industry, indicative of some 20% of the totality of the U. S. economy, that the United States had begun the long slide into depression once the feeder industries, like rubber, glass, plastics, tex- well before Japanese production began to match that of the

EIR May 31', 1991 Feature 37 FIGURE 11 FIGURE 12 Steel produced per capita Cement produced per capita (tons) (tons)

1.1 0.8 Japan " 1.0 0.7 0.9

...-- Germany 0.8 • •.. . 0.6 :• • ••...... • ...... : • • 0.7 . :. ... • • . .. : • • • • •• I .· 0.5 •• ...... '\ 0.6 •• ...... •

0.5 0.4

0.4 United States / 0.3 0.3

0.2 0.2

O� I I I I I I I I I I I I I I I 1960 1965 1970 1975 1980 1985 I I I I I I I I I I I I I I I I I I I I I I I I I I I 1960 1965 1970 1,975 1980 1985 1990 Source: American Iron and Steel Institute.

Sources: Japan Statistical Yea tboolc; U.S. Bureau of Mines. U.S. industry . In design, engineering, and product development, the auto industry of the United States is left flat-footed by both industry has been spending less than half the $3 billion the the others. The depth of engineering excellence which goes American Iron and Steel Institute estimates would be re­ into the production of Mercedes and BMW products can no quired to maintain U.S. capital plant and equipment. Im­ longer be matched in the United States, and has not been provements in the industry's operating technology have been matched for a long time. Japanese industry takes two years developed in primarily Germany and Japan, and adopted in to break even on a product; U.S. industry, ten. Japan can the United States on a delayed basis. redesign 80% of its models every five years; the U.S., only The thesis that foreign competition destroyed these indus­ 40% in the same period. Japanese autos are produced with tries is absurd. No one is to blame but the Americans them­ about 20% less labor than their U.S. counterparts, because selves. Did the Japanese or Gennansinsist that U. S. research the quality of the production machinery is continually im­ or capital improvement budgets be slashed to maintain debt proved. This is reflectedin the new generation of multi valve, service? Do Japan and Germany control the policy of the . four-cylinder engines, which deliver more horsepower than London and New York banks which insist that usury comes the now-standard, U.S. six-cylinder version. The U.S. in­ first? dustry lacks the capital to retool for such products, or the Figure 12 highlights this absurdity. No one hears about engineering and production base to adopt them. unfair competition in the production of cement, nor does In the case of the steel industry, Japan's takeoff seems to anyone charge that cement is being dumped in U.S. markets. precede the onset of the decline of the United States. The However, cement, a basic material for many industries, question remains, can Germany or Japan be held responsible, shows the same patternas the aqtomobile and steel industries. over the span of about 20 years, for the collapse of the United Japan is producing 30% more per capita of the material than States? Steel reflects the same incapacities demonstrated in is the U.S.; Germany is producing over 20% more. In the the auto industry: lack of capital investment, shortage of U.S., the industry never recovered from the oil shock of engineering skills, and dependence on innovation originating 1973-74. Overnight, the energy cost of production tripled, abroad, for the maintenance of sections of the industry. The forcing a slew of producersou t!of business.

38 Feature ElK May 31, 1991 Again, lack of investment, destruction of engineering FIGURE 13 skills, and dependence on foreign idnovation, are what char­ Machine tool production per capita acterize the industry. Two-thirds, and more, of the country's (units per capita) market will be dominated by imported tools and foreign transplanted producers in the 1990s, in the industry's own estimate. And again, it is worse than that. The German tool­ 0.0035 maker Bihler designs tools at a plant in New Jersey. It cannot find enough skilled workers to build its designs in the U. S. 0.0030 The designs are thus built abroad �d imported. When the machines arrive, the company's cu$tomers often cannot find 0.0025 workers with the skills to operate the equipment, not even among management personnel. I this company's view,

0.0020 "U.S. manufacturing is absolutely tarded." The same profile is found in tht public investment poli­ cies of the three countries. Public ibvestment is made up of 0.0015 government-backedinvestment in such functions as road and highway construction, water supply and purification, sewage 0.0010 disposal, airports, and sometimes power supply and railroad transportation. These are the components of the infrastruc­ 0.0005 ture of the economy, elements which in the main are too large and costly to be fundedfrom private investment, but without which no private investment can function. o

This report was prepared by Chris· White, Laurence Hecht, lohn Hoefle, Steve Parsons, and Akthony Wikrent. • United States II Germany IZI Japan

Sources: Association for Manufacturing Te chnology; Japan Statistical Ye arbook.

Machine tools and infrastructure Bridge Across Jordan The machine tooHndustry produces the machines which by Amelia Platts Boynton Robinson makethe machines that theeconomy depends on to function. From the civil rights struggle in Once number-one, and undisputedly so, both in volume and the South in the 19305, to the quality of production, and also the source for production Edmund Pettus Bridge at Selma, technology innovations in the industry, the United States, Alabama in 1965, to the liberation since 1989, has been the world's number-five machine tool of East Germany in 1989-90: the new edition of the producer, ranking below Italy in volume of production. The classic account by an Am,pr;,,,,,n present relative decline of the industry since 1975, again heroine who struggled at the compared with Germany and Japan, is shown in Figure 13. of Dr. Martin Luther King and today is fighting for the cause The differences: Germany and Japan produce for export mar­ Lyndon LaRouche. kets, whereas the U.S. does not, and imports more than 50% "an inspiring, eloquent of its annual consumption. Germany, with its tradition of memoir of her more than engineering excellence, is the manufacturer of the machines decades on the front lines which make the machines for the European economy. The I wholeheartedly U.S. numbers are significantly lower than what is usually it to everyone who cares about human rights in reported, because hand tools, electric drills, and so forth , America. ''-Coretta which are often included in total production figures, have

been removed, to produce comparability in the series. If the $10 plus postage and U.S. series were extended back in time to 1960, it would handling ($1.75 for the first book, $.75 for each show the same patternas was seen in the steel and auto charts: additional book). Virginia an increase through 1967 , followed by a decline through residents add4.5% sales tax. checkMake or money 1972, followed by a bounce-back, with the precipitous de­ order payable to Ben cline developing between 1978 and 1982. Franklin Booksellers.

EIR May 31, i991 Feature 39 �TIrnInteD1ationa1

British 'new world order' behind Raj iv Gandhisla ying by Linda de Hoyos

No matter how the May 21 assassination of former Indian May 20, as India's next primeminister. Prime Minister Rajiv Gandhi was carried out or by whom, Since elections were called on May 1, Mr. Gandhi had the murder of this Indian leader is the most lethal blow yet beentraversing the country non�stop, holdingrallies from early to the national sovereignty and integrity of the Indian repub­ morning till late at night, in a campaign to return to the prime lic. And no matter who plotted and carried out Rajiv Gandhi's ministership. Gandhi's individual effort, far surpassing that of murder, the policy behind that assassination is British policy the Congress Party organization itself, was motivated by the for the dismemberment of India, represented in the United threatto India's unityand stability posed theby risingpopularity States by Henry Kissinger. India was the top target of the of the Hindu chauvinist BharatiyaJanata Partyon the one hand, National Security Study Memorandum 200, "Implications of and the provocatory low-caste-Muslim politics of Janata Dal Worldwide Population Growth for U.S. Security and Over­ leader V. P. Singh, on the other. Inthe course ofthe campaign, seas Interests," written in 1974 by then-national security ad­ it was recognized that Gandhi had crushed the Janata Dal and visers Kissinger and Brent Scowcroft. its bid to stealthe Muslim-low-caste vote bank ofthe Congress NSSM 20 cited 13 "key countries" in which, it said, Party, leaving the BJP, with its in-depthorganizati on, as Gan­ there is a "special U. S. political and strategic interest" which dhi's major opponent. requires imposing a policy of population control or reduction. Within the BJP umbrella coalition is the Hindu funda­ India heads the list of those countries. mentalist RSS, which provided the assassin of Mahatma Kissinger's NSSM states: "The subcontinent will be for Gandhi in 1948. The RSS is :a paramilitary grouping with years the major focus of world concern over population multiple ties to London and Israel. growth. India's population is now approximately 580 mil­ The civil strife fomented by the BJP and the Janata Dal lion, adding a million by each full moon." The document had already resulted in the bloodiestelections in Indian histo­ cites a June 17, 1974 report fromthe U.S. embassy in Delhi, ry, with 50 people killed during the first day of polling. complaining that "There seems no way of turning off the That violence, in turn, became the cover under which Mr. faucet this side of 1 billion Indians." Gandhi's assassination was carried out. The aim behind the assassination of Mr. Gandhi is to hurl Now, the Congress Party bas been left rudderless and in India into fratricidal strife, resulting in the destruction of its disarray, with far less capability to meet the BJP threat. It is economy and sovereignty. And that is the nightmare fear feared that even if the BJP does not come to power in this that grips the nation in the immediate days following Rajiv election, it will be only a matter of time before it does. Once Gandhi's death. in power, the party is expected to declare warupon India's Mr. Gandhi was assassinated in the evening of May 21 minorities-Muslims, Sikhs, and Christians-fueling the as he was approaching the dais for a campaign rally. He was separatist movements that already plague the country. As killed by a professionally assembled plastique bomb, which EIR documented in its 1985 book Derivative Assassination, exploded and killed upwards of 20 other people. CBS polling the Sikh separatistmovement is owned and operatedby Lon­ that day had showed that it was likely that Mr. Gandhi would don, as are the other insurgencies on the subcontinent. emerge from national elections, which had already begun on While the Western press !has consistently derided Mr.

40 International EIR May 31, 1991 Gandhi as the "last of the Nehru-Gandhi dynasty" and taken against Iraqbecame clear, Gandhi acted as the de facto foreign joy in his murder, the reality is that the Nehru-Gandhi family minister of the Chandrashekhar govenunent, in an attempt to is the symbol in India of the nation's unity and progress. halt the war. Gandhi issued a statement Feb. 7, which decried "This is one of the blackest days in Indian history," said the warin no uncertain terms: Indian Prime Minister Chandrashekhar on Gandhi's assassi­ "Iraq is being used as a testing ground for new weapons nation. Gandhi represents for India "progress, development, technology. The idiom in which the war is being advocated, and complete faith in democraticstability ." propagated, and fought gives the impression almost of a game, or a warmachine that is sotaken in by itstechnological superior­ British targeting ity that it seems to have forgotten the price in human suffering Themurder of Rajiv Gandhiis the thirdphase of a destabili­ it is exacting. . . . Who knows how many children this warhas zation of India orchestrated from outside the country which already killed, how many more are destined to die, how many began in 1983. In March of that year, Prime Minister Indira orphans this war has left untended, how many it has left desti­ Gandhi, Rajiv Gandhi's mother and the leader of the Non­ tute, from how many their laughter and play has been stolen, Aligned Movement, had just led a NAM conference which how many have been robbed of their childhood? We do not called for "new structures"to replacethe bankrupt world mone­ believe that the mandate of Resolution 678 extends to the de­ tary system and for a new worldeconomic order, which would struction of Iraq. The Security Council cannot have authorized bring technology and development to the Third World. By the the liberation of Kuwait through the obliteration of Iraq." end of the year, Mrs . Gandhi was faced with an insurgent Gandhi then forced the Indian government to withdraw separatist movement among Sikhs in Punjab, with Sikh terror­ permission for U.S. warplanes to refuel in Madras on their way ists seizing the Golden Temple shrine in Amritsar, Punjab. In to the Gulf war from the Philippines, despite pressure from

June 1984, Mrs . Gandhi ordered the Indian army to seize the Washington, which knowledgeable Indian sources say included shrine and put down the insurgency. On Oct. 31, 1984, Mrs . threats of assassination of Indian leaders. Gandhiwas assassinated by her Sikh bodyguards. In his last interview before his death, in the car onhis way In Derivative Assassination, EIR documented the British to the rally outside of Madras where ; he was killed, Gandhi sponsorship of the Sikh separatist movement, and its ties again showed his unwillingness to step in line with the malthu­ into the U.S. and Canada through intelligence operative Jon sian new world order. The interview, as reported May 22 by Speller and the Anti-DefamationLeague . The same networks Barbara Crossette of the New York Times, went like this: as sponsored the Sikh assassination of Mrs. Gandhi are re­ "He argued that family planning was 'very much a non­ sponsible for the murder of her son May 21. starter' inInd ia. A case in point is Lloyd Rudolph, "India specialist" at " 'We need four things,' he said. 'We need education for the University of Chicago, who contributed to theIndia sec­ the woman, the girl child. We need a good job for everybody. tion of the 1980sPro ject of theCouncil on Foreign Relations. We need child and maternalhealth care. And we need overall Working under Rudolph in 1985 was Iqbal Singh, a retired economic growth. The government must act so that the result Indian military attache who told EIR in an interview Nov. is family planning which would follow these things.' ... 12, 1984, thathe received regular reports from Sikh terrorists "Asked how he thought he would get along with Paki­ in Punjab. Singh was also in contact with Canada-based ter­ stan's new Prime Minist�r Nawaz Sharif ...Mr. Gandhi rorist Brigadier Parrninder Singh. said he had never met Mr. Sharif and could not judge what On the night of May 21, 1991, Singh's professorial spon­ kind of relationship they would have. sor Lloyd Rudolph appeared on ABC's "Nightline" to push " 'But I know who could have solved these problems his new book, The Life and Death of a Dynasty. Exuding with us,' he said. 'General Zia. We were close to finishing hatred of the Gandhi family and of India, Rudolph pro­ agreement on Kashmir, we had the maps and everything claimed that India would have no problem surviving Gan­ ready to sign. And then he was killed. ' ... dhi's death with leaders like V.P. Singh. A Public Broadcast­ "Mr. Gandhi said there was evi

EIR May 31, 1991 International 41 those who represent the policies which Kissinger, Brent Scowcroft , and others have put into the U.S. government policy book back in the 1970s and during the 1980s, into the 'Assassination of 1990s. The objective of the assassination of Gandhi is the de­ Gandhi is a crime struction of India. If the BhaIittiya Janata Party comes to power, as is expected with the assassination of former Prime against humanity' Minister Rajiv Gandhi, then the likelihood of communalist conflictis greatly increased; and also, even, of potential war or similar conflictwith Pakistan and others . The objective of the British and their fellow running dogs in the United States, such as Henry Kissinger, is the dismemberment of India, Presidential candidate Lyndon LaRouche issued this state­ dividing it into quarrelingnation s, or into a loose federation ment regarding the May 21 assassination of former Indian of quarreling states with no reali effective unity as a nation. Prime Minister Rajiv Gandhi. Genocide beyond Hitler ' The Gandhi family of India-which has just suffered another The purpose of this is to take the approximately billion death today with the assassination of former Prime Minister people or so of the Indian subcontinent and to subject them to Rajiv Gandhi-has been a friendof mine. And I speak from massive genocide over the corrling two generations through the standpoint of both that special friendship, and also as a famine and epidemic. This puts Kissinger's masters in London statesman who is placed in a horrifyingly unique position by and his associates and dupes in the United States in a class way this latest atrocity, this latest assassination. beyond the worst attributed to di�or Adolf Hitler. There is no question as to the ultimate authorship of this We must grasp the nature ofthis situation; we must rise assassination. It is essentially the same authorship as that of above pragmatism to face elemental realities. The United the assassination of Mrs. Indira Gandhi as prime minister States War of Independence \\'las not a mistake, was not a back in 1984. The assassins then included forces allied with misunderstanding, but was pr¢mised on an imperfect but the Anti-Defamation League in the United States-that is, adequate understanding of a mQral gulf existing between the with the Project Democracy crowd in the United States and people of the Americas, and the British monarchy, which the relevant other parties indicated. could not be bridged, except by lWar,if necessary, to separate The essence of this assassination is, of course, that while it the Americas from Britain. may have beendirected from the United States (as recentthreats The British royal family was evil then, and has not lately against former Prime Minister Gandhi indicated), the policy is shown much sign of improv�ment in this policy. What manufactured in GreatBritain-specifically by those in Britain they've done in India in the pa�t speaks for itself, and their who own, according to Mr. Kissinger's own public statement, hand in the bloody events of the present speaks of Britain's fonner Secretary Stateof HenryA. Kissinger. past. Now, to be specific. This is a crime against all of humanity; not only the family of Mrs. Gandhi and Nehru. It is a crime against India, Kissinger's target list of countries because there was no public figUreleft in Indian political life Remember that India was placed on a special target list who could have pulled that nation together, in a degree of by Henry A. Kissinger at a time that he was still national unity sufficientto meet the chal)enge of this period. Thus, in security adviser for the Nixon and Ford administrations, and this occasion, the murder of Ragiv Gandhi by Anglo-Ameri­ also Nixon's secretary of state. India is, along with Mexico, can interests, perhaps with ADL and related support, is more Colombia, Brazil, Pakistan, Turkey, and others , on that hit than the murder of a man; more :than the continued murder of list. That's the essential issue. a family which the British hap�n to hate; it is the attempted The policy which Kissinger elaborated came at a time murder of the better portion of Ii billion people of the Indian that Kissinger was acting as an agent of influence of the subcontinent. British Foreign Office. Kissinger so declared himself, that Never before in the history lof mankind have the Anglo­ he had been such an agent during the Ford and Nixon admin­ Americans of that faction associated with Kissinger done a istrations in a speech delivered publicly at Chatham House­ crime as monstrous as this. It is! time to say no: And whether his master's premises-in London, in May 1982. the nations of the United Kingpom and North America are So this, like the Bernard Lewis Plan, under which the morally fit to survive, rather than be wiped from the face of United States joined Britain in bringing Khomeini to power this earth as an abomination atlter the model of Sodom and in Iran, is a British policy-thepolicy of those in Britain who Gomorrah , will perhaps be ju�ed by the manner in which own, according to his own admission, Henry A. Kissinger- we respond to the challenge of this awful event of today.

42 International EIR May 31, 1991 Colombia. Salles writes that the NSC documents firstbecame known in Brazil through a special memorandum circulated by the Brazilian officeof Executive Intelligence Review mag­ azine. Salles charged that depopulation �rograms in Brazil have Brazilians challenge been generously financed, by the U.� . Agency for Interna­ tional Development and Bemfam, the Planned Parenthood U. S. -backed genocide local chapter, which coordinates ,terilization programs. "Millions of women were, and cont�nue to be, subjected to procedures which differ in no way, in terms of their final One hundred sixty-four members of the Brazilian Congress objectives, from those used by the Nazis in Hitler's Germany have signed a call to officially establish a Congressional to try to stop the numerical growth of the Jewish people," he Commission of Inquiry, which will investigate United States said. governmentinvolvement in a decade-long mass sterilization program directed primarily against poor, black Brazilian Sterilization: 'hidden apartheid' women. The call, which has stirred nationalist passions in At least 90% of the women wQo were sterilized were the country, comes on the eve of a June visit to Washington black and uneducated, residents of the impoverished/avelas, by President Fernando Collor de Mello, where the Brazilian or shantytowns, surroundingBrazil 'Si major cities, according head of state is hoping to link his flagging administration to to Congresswoman Benedita da Silva, who gathered the sig­ Bush's fascist new world order. natures to establish the Commission of Inquiry. Da Silva Current estimates by Brazilian Health Minister Alceni called this "hidden apartheid," and hM announced her inten­ Guerra are that as many as 20-25 million Brazilian women tion of calling many of these women before the commission. of child-bearing age-an incredible 44% !-were sterilized, The black congresswoman also charged that companies in many of them without their knowledge. He has stated that Brazil were asking for proof of sterilization as a condition evidence exists of continued mass sterilization programs to­ for employment, and demanded an investigation of what day, and that the population reduction programs in Brazil's agreements may have been signed in recent years enforcing poorer cities, such as Recife and Salvador, have been so such policies. She suggested that 'feven the International "successful" that his ministry was unable to find enough Monetary Fund could be involved in 'all this." children to vaccinate last year! Dr. Guerra has ordered his Jornal de Brasilia, a daily published in the nation's capi­ ministry's Division of Infant and Maternal Health to inves­ tal, reported on May 10 that Sao Paulo Senator Mario Covas, tigate. a former presidential candidate, said that while the question The congressional investigation call was sparked by ex­ of birth control was up to each individual, an investigation tensive media revelations during the past three weeks, of was warranted due to the "interference of a foreign state in secret U. S. National Security Council (NSC) documents de­ this matter." Covas, who headed a similar congressional tailing an explicit U.S. government policy to force Brazil probe on the involvement of foreign agencies in the steriliza­ and a dozen other Third World countries to reduce their tion of Brazilian women during the late 196Os, said, "the populations, as part of a neo-colonialist strategy of domina­ evidence was very strong then, and is now being confirmed tion to ensure U.S. access to those countries' raw materials. by impartial documents." I The recently declassified documents were written between On May 18, Jornal de Brasilia revealed that the previous 1974 and 1977 , under then Secretary of State and NSC direc­ administration of Jose Samey had zealously supported these tor Henry Kissinger and his successor, Brent Scow croft. depopulation programs. One of Samey's departing acts was George Bush, Director of Central Intelligence and U.S. am­ to decree that families could not take more than fivededuc­ bassador to China during that same period, collaborated in tions (for children) on their income taxes, a China-modeled the development and implementation of the policy, the docu­ policy which current President Collor has pledged to over­ ments show. turn. In 1989, Samey personally awarded the International An article published on May 2 by Brazil's most important Planned Parenthood Federation $100,000 "for services ren­ newspaper, Jornal do Brasil, and written by the respected dered to Brazil." The Brazilian dailyHora do Povo reported law professor and journalistHeraclio Salles, noted that of the May 1 that those "services rendered" have led to "a collapse 13 countries listed in the NSC memo as principal targets of of Brazil's population growth, from 3.5% per year during the U.S. depopulation scheme, Brazil was the first on the the 1970s, to 1.9% during the '80s." list. The other countries considered of "special, strategic, An officialstudy by the Brazilian and Statistical Institute and political interest to the United States," reported Salles, (lBGE) has just revealed that birth rates may fall to zero by are India, Bangladesh, Pakistan, Nigeria, Mexico, Indone­ the year 2000. Hora do Povo has appropriately dubbed this sia, the Philippines, Thailand, Egypt, Turkey, Ethiopia, and "a strategy for extermination. "

EIR May 31, 1991 International 43 Dangerof war intensifies through the Balkan peninsula by Konstantin George

A sweeping Balkan crisis of a type not seen in over 75 years , President. The numerical deadlock, however, was mis­ led by the threat of civil war in Yugoslavia, could become leading concerning the true political correlation of forces reality anytime between June and October. The immediate inside Yugoslavia. In reality, the vote showed that Serbia hot spot is and will remain Yugoslavia, but during the coming was isolated. Four of Yugoslavia's six republics, the two months the economic-political chaos in the neighboring western republics Slovenia and Croatia, thecentral republic countries of Albania, Romania, and Bulgaria, beset by col­ of Bosnia, and in Serbia's rear, the republic of Macedonia, lapsed economies, mass unemployment, and the beginnings lined up solidly against Serbia, leaving only Yugoslavia's of mass fascist-chauvinist movements , will advance toward smallest republic , tiny Montemegro, aligned with Serbia. .dangerous thresholds. The most unstable of these situations The fears expressed by many Western commentaries that around Yugoslavia's periphery is Albania, where a national the constitutional crisis would plunge Yugoslavia into a im­ general strike of industry and transport, begun May 15, was mediate Serb-Croat civil war proved unfounded. StipeMesic still in progress as of May 23, having paralyzed the country . and the leadership of Croatia handled the affront with com­ This overall matrix of upheaval in southeastern Europe mendable statesmanship. As early as May 15, Mesic was on will tend to intensify the latest troubles inside Yugoslavia. Yugoslav radio proclaiming that the crisis was "not an inter­ May 15 was the inflectionpoint. Under the present constitu­ ethnic conflict" but a crisis caused by "Bolshevik Serbian tion, the presidency of the Yugoslav federation is supposed expansionism," and, contrary! to threats he had issued prior to rotate annually among the six presidents of the constituent to May 15, that should he faiho be elected, he would hold a republics-Serbia, Croatia, Slovenia, Macedonia, Montene­ press conference in the Croatian capital of Zagreb pro­ gro, and Bosnia. On May 15, by this rotation agreement, the claiming Croatia's secession from Yugoslavia, nothing of post of State President, who is also commander-in-chief of the sort materialized. the armed forces, was supposed to have passed by a vote of Croatia's May 19 referendum, where 94% voted in favor the collective State Presidency, from the Serb Borisav Jovic of Croatian independence Within a "league of sovereign to the Croat StipeMesic . Instead, a Serbian chauvinist cabal , states," was not the alleged inflammatory secessionist move grouped around Serbia's communist President, Slobodan portrayed in some Western media, but another example of Milosevic, his "national bolshevik" supporters , and a Serbian moderation. This was shown in statements made by Croatian extremist faction in the Serbian-run military, created a consti­ President Franjo Tudjman, May 20: "I repeat that we want tutional crisis by blocking Mesic's election. an alliance of sovereign states within the framework of Yugo­ The election of Mesic would have paved the way for slavia, if this is possible. If this is not possible, then we want Yugoslavia to become, as demanded by four republics­ complete sovereignty and cOIIDplete independence." Stepan Croatia, Slovenia, Bosnia, and Macedonia-a league of sov­ Mesic on the same day, quashing speculation that Croatia ereign states, in a very loose confederation . This transforma­ would bolt from and thus immediately break up Yugoslavia, tion has been blocked by a Serbian cabal which insists that stated: "Disassociation is a long and drawn-out process . . . either Yugoslavia remain a Serb-dominated federal state, or, of continuing negotiations with Yugoslavia's other states on under any confederation arrangement, the territories outside the future shape of the [Yugoslav] community." Since basic Serbia where Serbs live�n the territory of Croatia and agreement on this "future shape" had already been reached Bosnia-be incorporated into a Greater Serbia. with everyone except Serbia, Mesic was clearly saying that Threesessio ns, May 15-17, of the collective State Presi­ Croatia still retained confidence that the crisis could be re­ dency, consisting of eight representatives-the presidents solved through talks with Serbia. of Yugoslavia's six republics, and of the two autonomous This confidence of Mesic and other Croat leadersnot was regions ruled by Serbia, Kosovo, and Voyvodina-failed illUSOry. Afterthe breakdown of the collective State Presidency, to break a repeated 4-4 deadlock on the vote for Mesic as on the weekend of May 18-19 i Yugoslav Prime Minister Ante

44 International EIR May 31, 1991 Markovic, a Croat, succeeded in creating a CoordinatingCom­ U.S. move for punishing "innocent republics" for "Serbian mittee drawn from the federal cabinet, to run the country until chauvinism," and federal Prime Minister Markovicwarned the constitutional crisis was resolved. Notably, the agreement that if Washington didn't revoke its measures, then Yugosla­ was concluded with the anti-civil war faction in the Serbian via was doomed to "international isolation" and "economic elite, and the leading Serbian cabinet members, Gen. Veljko catastrophe. " Kadijevic, the defense minister, and Gen. Petar Gracanin, the Could it have been a coincidence, that the State Depart­ interior minister, joined the Coordinating Committee. ment dropped its "bombshell" during the Washington tour of At this juncture, a dangerous crisis existed and persisted, Serbian Crown Prince Alexander, the!! claimant to the Yugo­ the danger of civil war had not been removed; but therewas slav throne, who had arrived from ,his exile residence in certainly hope for at least a short-term solution avoiding the London? It was precisely on May 20 that Alexander was ultimate horror of civil war. Then George Bush intervened. addressing the National Press Club in Washington, confi­ dently presenting his perspective of Yugoslavia's descent Bush intervenes: back to square one into total chaos, which would create the atmosphere for the As in past history-making Balkan crises, what could send restoration of the monarchy in Belgrade, i.e., a return to the the situation out of control is the deadly mixture of home­ pre- I941 state of affairs, of a monarchical "Greater Serbia" grown instability and consciously evil manipulation of the serving as a pawn to British interests.· regional crisis by outside forces, headed by the Bush admin­ istrationand its controllers in London. It is the escalation of thislatter factor, and not the failure ofYugoslavia to elect a In a recent issue, the German weetIyNeue Solidaritiit new State President and solve its constitutional crisis, as warned that if the Balkans go up :in flames, Western such, which threatens to make the Balkans again, as in the Europeans will have their own moral indifference to decade prior to World War I, the "Powder Keg of Europe." blame. On May 20, the U.S. State Department announced that "For decades the West Europeans have stood idly all U.S. aid to Yugoslavia had been suspended, and that the by as the Yugoslavs have been subjected to the same United States would veto all International Monetary Fund InternationalMonetary Fund austerity policies as those loans to that Balkan country. The U.S. veto means that Yugo­ which destroyedthe majority of theThird World coun­ slavia will not get a $1.1 billion IMF standby loan, and thus tries. That is shown now, among other things, by the no foreign loans in 1991, as the $3.5 billion in foreign loans catastrophic condition of thecoun try'sinfrastructure . " that had been lined up were all contingent on the IMF first The paper decried "shameless efforts by the Austrians agreeing to the standby credit. This could push Yugoslavia to force the Yugoslavs to shut down their only nuclear over the edge. powerplant (a modern American ll1odel). It seems the State Department spokeswoman Margaret Tutweiler on Austrians and West Europeans only want to have a. May 22 claimed the American move was prompted on behalf poor, backward southeastern Europe, where they can of "human rights," citing the Serbian leadership's "severe go on cheap vacations." repression in the Kosovo Province. " Serbia "has not conduct­ It went on, "If we want to stop a new European ed full, fair, and free elections, and is now acting to destabi­ catastrophe, we must reverse this policyat once. Noth­ lize the Yugoslav Presidency," she said. A more than strange ing is more apt for this than to implement the 'Produc­ explanation, as Serbia has been conducting "severe repres­ tive Triangle' program" of Lyndbn LaRouche. The sion" in Kosovo for a good three years, and the Serbian Balkan states lie precisely in two of the most important elections the State Department just discovered, were held "development corridors" expanding out from theTri­ last December. The State Department had no "explanation" angle: The Danube Arm, which connects the Western to justify why all six Yugoslav republics werebeing subject­ European industrial heartland with Southeast Europe ed to U.S. economic warfare. andthe Black Sea, via theRhine-Main-Danube Canal; The effect of the U.S. policy will be to radicalize the and The Southeastern Arm, with rapid rail lines for . Serbian people behind the extremist cabal, whose former freight and passenger transport: Munich-Vienna; popularity had waned sharply since last autumn. The media Lj ubljana, and Zagreb-Sofia-Istanbul. This would reVT outlets controlled by Serbian extremists, such as Serbian olutionize overland freighttransport to the Mideast, TV-which had failed to mobilize mass support for a "cru­ A political statement of intent 110 get the Productive sade" against Croatia-werehanded just the issue to rekindle Triangle going full-swing right $'vay, would have a ; Serbian chauvinist passions. Serbian TV on May 22 raved vital stabilizing effect on Yugoslavia and the entire that the American move was a "special war" against Serbia Balkan region. "Then, money would have to start on behalf of Croatia, to support the "radical goals" of Serbia's flowing and the construction get under way. There is . opponents through "force and foreign interventions." no more time to lose." The Croatian government of Tudjman denounced the

ElK May 31, 1991 International .45 Conference Report

French militarystrategy re turns to gunboat diplomacy aimed at South by Christine Bierre

The recent Franco-Algerian crisis has exposed a radical of war was from the East," wrote Yves Lacoste, director of change in French military and strategic thinking. the magazine H erodote, in one of the discussion documents Politically this dispute rings the death knell of a preferen­ distributed by the organizers of the AprilFo rum."But, now, tial alliance which, despite the typical love-hate relationship when euphoria should be general" following the collapse of between colony and colonist, had united France with its for­ communism, "new dangers are appearing: not only in the mer colony since the latter's independence. The fact that it East, where the difficulties of post-communist societies are was Foreign Minister Roland Dumas who went to Beijing more and more disturbing, but also in the South, that is, south to demand that China explain its nuclear cooperation with of the Europeancontinent, in the Arab world and more broadly Algeria, doubtless on behalf of the new troika of France, the Muslim world. The Kuwailt affairis a living example." the United States, and Great Britain, really does constitute The end ofY alta, with all the controlthat the superpowers treason against the traditional Franco-Algerian cooperation. used to exercise over their Tl)ird World allies, opens up a Roland Dumas's demarche confirms what France's par­ new period of instability in the Third World, according to ticipation in the Gulf war had already made obvious: that these strategists, wrote Paul Marie de la Gorce, director of France has abandoned its "Arab" policy. But it would be the Revue de La Defense NationaLe, in another conference false to think that the new French strategy is solely anti-Arab. paper. This is especially true, he says, in the "Arc of Crisis France is, henceforth, turning against all developing sector . . . which goes from the northwest of Africato the Indian countries, thereby abandoning General de Gaulle's remark­ Ocean, from Morocco to Pakistan, from the Atlanticto Cen­ ably generous posture towardthe poor countries that wanted tral Asia." to progress. We are moving, in the language of the experts at the This overturning of the values of Gaullist France lays French International Institute for Foreign Affairs (IFRI), bare an ugliness, a racism that one had gotten used to seeing from a world in which we had to deal with only one, very only in the faces of the friends of Mr. Le Pen, but which, well-defined enemy, organizt;d into a bloc, to a world in today, is spreading throughout the French political class. which the threat is multiple and found in the formerEast bloc How else could one interpret the statements of Dep. Fran�ois countries, and above all in the South. Fillon, "Gaullist" by extension, in the May 2 Quotidien de But how could this army of poor people constitute such Paris, explaining that, in order to stop countries like Algeria a threat against us? This was explained for us by Maj. Gilles from obtaining with civilian or military nuclear power, "we Martin, in his paper, "The Appearance of a Threatto South­ , must set a limit on the export of expertise"? ernEurope ." Militarily, he says, this threat exists because we cannot Wars against the South appeal to nuclear deterrence against developing sector coun­ Even more disturbing are the speeches that have been giv­ tries. Now, Southern Europe is already within strikingrange en by a number of militaryfigures since the Gulf war, which of the Arab countries. Italy, Greece, and Spain can be indicate that a whole military strategy is being put into place reached by Scud class missiles. while new, betterperforming to confront the new menace from the South. That was precise­ missiles, which Libya, Syria,; and Egypt are in the process ly the evaluation of many think-tankers and strategists. Such of obtaining, would allow them to strike the south of France. views were expressed by a certain number of participants in These countries are also able to extend therange of missiles, the major military strategy colloquium that was organized in eventually to equip them with chemical warheads, and de­ April by the War College in Paris, and which brought together ploy-for some of them-long-range planes like the MiG- more than 100 foreign dignitaries to discuss "Which Security 27. As for tanks, countries like Egypt and Syriahave three for Europe at the Dawn of the 21 st Century?" times as many as France. "For 40 years, for the people of WesternEurope , the threat Even though these countries deploy several systems

46 International EIR May 31, 1991 allowing them to reach some European countries, Martin distant" future. Fewer fighter and intercept planes will be acknowledges that these countries do not have an in-depth needed, but more very long distance transports. military capacity to really challenge Europe. With the Medi­ What will be done with nuclear-armed nations? "What terranean in the middle, putting a halt to any land-based will we do , if the United States, being the dominant power, assault, Martin says the "Arab" menace in fact, is limited asked us to aid them in the circumstances leading to a conflict both now and for some time to come to a strategy of blind between India and Pakistan, for example? Will we remain "terroristbombin gs. " seated on our rear ends, contemplating these things and say­ However little credibility the military threat may have, ing, 'This isn't in our interests'?" as�ed former head of the "the future seems heavy with uncertainty," says Martin, who General Secretariat for National Defense General de Barry, envisages the building up of opposition-especially by "de­ in the discussion that followed the presentation by Colonel mographic, economic, and religious orders." Therefore , the Dufour. After being reminded by another participant that the threat consists of starving hordes, turnedinto religious fanat­ United States would have nothing to do with such a conflict, ics. First there is the demographic factor: "The contrast be­ de Barry acknowledged in effect that such an intervention tween a rich Europe where population is stagnating or re­ would be undertaken in the name of the U. N. and the new gressing, and a Maghreb in a permanent economic crisis, world order, and not under the American aegis. Then he whose demography is taking off, can only be aggravated." shouted out: "We need a new Metternich and anew Congress Then the economic factor: "The Arab people blame the West­ of Vienna, and it's not tomorrow that we need it!" Colonel erners for their economic misery." On the religious factor: Dufour added that, nuclear proliferation being what it is, "Islamic integrism is spreading throughout and opposes there is a strong probability that "on the threshold of the year Western values." Finally, there is geopolitics: "The two 2000, a certain number of regional conflicts, such as that coasts of the Mediterranean create two confederations of between India and Pakistan ...will be nuclear ones. The states ...the EC in the North, and the Union of the Maghreb deployment of these weapons is eminently probable. It is in the South. . .. Having two great powers next to each only more probable, fortunately, that it may take place in the other, populated by 200 or 300 million inhabitants, often South than in the North!" gives riseto rivalries and war.These rivalries are all the more probable when they stem from differences in religion, ethnic Declare war on the Anglo-American interests differences, standards of living, democracy, demography." What is the real situation in these countries of the South that Colonel Dufour is declaring the new enemy? In Africa, Deploying against weapons of the poor where the good colonel proposes to have Zaire and Morocco What to do in the face of this threat? Major Martin made become the gendarmes for France, 29 million will die of a feeble and scarcely convincing call at the end of his paper hunger in the Hom of Africa, while, according to the latest in favor of European aid to these countries. Others, more World Health Organization figures, 6 million are infected candid, laid out the necessary military strategies to be on the with AIDS. Egypt, Tunisia, and Morocco are regularly scene for fighting those countries that would dare to develop rocked by food riots, brought about by the austerity policies thesame advanced technologies, civilian or military, that we ofthe IMF; Algeria has been falling into poverty for 10 years. deploy. What do these strategists fear: famished hordes, armies of Col. Jean-Louis Dufour put forward the following ideas: poor, armies of sick, who will demand payment for the mis­ "From now on, future interventions will be all and altogether ery that's been imposed upon them? be linked in France to limited wars, however misnamed. In 1974, when the National Security Council was led by These will take place . . . within Europe as well as outside Henry Kissinger, an NSC document denounced development the old continent. Overseas action, which formerly for the in Third World countries as a threat to the security of the FrenchArmy used to be ancillary . . . even an embarrassing United States. Since then, the manipulation to lower the parasite, abother that used to distract it frombeing preoccu­ prices of raw materials on the London ,New York, and Chica­ pied with Central Europe, the only noble engagement, will go exchanges and IMF "structural adjustment" policies have become the rule and the cardinal point of its efforts. Suffice ended up destroying the majority of the countries of the South it to say that a new army is indispensable." that make up a "threat" to the United States, creating the Colonel Dufour went on to propose a top to bottomreform "hungry hordes" that now worry the French strategists. of the army , maintaining nucleardeterr ence, but creating the As for Islamic integrism: In Algeria, it was Saudi Arabia, conditions for rapid interventions, "as much in the East as in the unconditional ally of the Americans, that financed the the South." He favors a coast guard, because "our naval Front Islamique de Salut party; and in Iran, thanks to British forces will never have enough ships to be everywhere." "The Petroleum and Royal Dutch Shell, and to Valery Giscard land army is going to suffer"the most, but will be reconstitu­ d'Estaing, Khomeini was put into power, and, from the be­ ted around a rapid deployment force, considerably rein­ ginning, it was the British intelligence services that fanned forced. The air force, will also be changed, in the "more the flames of Islamic integrism.

EIR May 3 1, 1991 International 47 retired Brig. Ernesto Crespo, former head of the Air Force under the Raul Alfonsin administration (1983-89), publicly attacked the government's submission to U.S. State Depart­ ment and Pentagon demands fthat the Air Force 's Condor IT missile be dismantled. To su6cumb to these pressures, Cres­ po said, would transform Argentina into "a banana republic." In a subsequent interview, the Air Force officer said that MilitaIycrisis Argentina had "subjugated itself to the United States." Menem and Defense Minister Erman Gonzalez moved builds in Argentina quickly to punish the outspoken officers. Mozzarelli was relieved of duty and sent into retirement, and Crespo placed by CynthiaR. Rush under 30 days of house arrest. Menem also ordered the high commands of all three branches to cancel a joint meeting, scheduled for May 14, whose agenda was the economic The crisis in Argentina's Armed Forces is reaching the boil­ crisis afflicting the institution . It was the first time such a ing point, as high-level officers from all three branches are meeting had been planned since 1983. Menem threatened angrily telling PresidentCarlos Menem that his austerity poli� the military leaders that if they didn't cancel the meeting, cies are turning the country into a "banana republic ." Army he would put Finance Minister Domingo Cavallo on national nationalist Col. Mohamed Ali Seineldin, because he said television to charge that the Armed Forces are greedily long ago what many of these officers are only now saying, demanding a 27% wage increase-equivalent to $72 million sits in jail today, with a sentence of 20 years to life . He monthly-which could be put to better use for social pro­ repeatedly warned PresidentMenem and the Armed Forces' grams and pensions. high commands that surrenderto the Anglo-American strate­ Military wages are at an all-time .low, yet Cavallo, a gy to dismantle the military institution would leave the coun­ leading asset of the Anglo-J\merican establishment, claims try defenseless and its sovereignty threatened. Menem ig­ that the increase would disrupt his economic austerity nored Colonel Seineldin, and with his anti-military policy program. provoked the nationalist uprising of Dec. 3, 1990 directed against the Army high command. The high command backed Dismembering the Armed Forces Menem in his harsh repression and treatment of nationalists, Menem's strategy of jailing or repressing anyone who and tolerated his demand that the uprising's leaders be put to disagrees with his policy is only a short-term solution. The death or jailed for life. high commands of the three i branches of the Armed Forces But now , when leaders of the Armed Forces are telling agreed to cancel their May 14 meeting, and to discuss the Menem some of the same things that Seineldin has been issues separately; but that is probably only a temporary post­ saying for years , they are getting pretty much the same treat­ ponement. Just a few days after Vice Admiral Mozzarelli ment that the President meted out to Seineldin. In response spoke out, Adm. Emilio Osses, head of the Joint Chiefs of to military protests over the austerity conditions imposed by Staff, remarked in a public speechthat the military institution the International Monetary Fund (IMF), Menem has told the had suffered "a substantial :setback" in recent years , and Armed Forces leadership to "make sacrifices" and not waste warned that "the non-existeniCe of the Armed Forces is not a time demanding higher wages. Speaking on May 15, he lUXUry the country can afford ." warned that "just as we didn't tolerate what happened on Army , Navy, and Air Force leaders are enraged that cuts Dec . 3, [1990] , we will not tolerate any acts of indiscipline in the defense budget, at the IMF's behest, have reducedthe within the Armed Forces ." As far as the Argentine President operating capability of all three branches to almost nothing. is concerned, anyone who questions his policy is just a rebel­ Military manuals say that an Army with a 30% operating lious carapintada, or "painted face ," the term by which the capability is effectively "defeated," yet the Argentine Army nationalists are known, in reference to the camouflage paint estimates that it now has only a 15% operating capability. worn by combat soldiers . According to the Armed FOl1Ces' own estimates, the current Menem issued his warning in response to a series of budget of $150 million represents only 20% of the "historic" events over the preceding week. On May 10, the Navy's defense budget ($750 milliOD) . deputy chief of staff, Vice Adm. Antonio Mozzarelli, told With no regard for national security or sovereignty, Fi­ an audience at the Punta Indio naval base that "Argentina is nance Minister Cavallo views the Armed Forces as he would defenseless." Speaking on the anniversary of the founding of any other state-sector enterprise which is slated to be stream­ naval aviation, he explained that "this is not a sensationalist lined and privatized under the auspices of the World Bank. message, but rather a product of the conjunctural economic He and his military adviser Rosendo Fraga are trying to find situation from which we all suffer." A few days earlier, a way to officially incorpollate the Armed Forces into the

48 International EIR May 31, 1991 program to "reform" the state sector, in order to reduce the is not pleased with the survival of a nationalist wing in the number of active-duty troops, and send soldiers home with Army, apparently extended now to the Air Force with a focus unemployment benefits as if they were any other state em­ on the Condor II, whose purposeis to show that the Argentine ployee. Menem has also granted the World Bank oversight of Armed Forces cannot and should not 'let down their guard' the privatization of all defense-related companies, including on matters of national defense." The paper adds that the such strategicallyvital ones as the Somisa steel complex, the U. S. is fearful that should nationalists ever take power in General Mosconi and Bahia Blanca petrochemical compa­ Argentina, a 1 ,200-kilometer-range missile like the Condor nies, and the military industries company Fabricaciones Mili­ could be of real use in any plan to retake the Malvinas Islands. tares. The current militaryturmoil is particularly strengthening the group around Colonel Seineldin, 'Yhoseviews have been Technology prohibited vindicated by recent developments.. In an open letter on the The Bush administration's efforts to do away with the current crisis, reported on in the May 14 daily Clarfn, Condor II missile, which was formerly being developed in Seineldin commented that "the high commands at last appear collaboration with the governments of Iraq and Egypt, have to be trying to do something for the institution. " Vice Admiral provoked sharp resistance among Army, Navy, and Air Mozzarrelli's statements on the defenselessness of the nation Force ranks, as well as an official alliance between the Army constitute "a 'small light which is beginning to insinuate it­ and Air Force high commands. For "tactical" reasons, Navy self," the colonel said. "If concretized in a real and sincere leaders prefer to steer clear of any public stance which might way, it will at last address the causes of so many confronta­ endanger the "strategic alliance" with the United States, but tions "within the Armed Forces." for most of the rest of the Armed Forces, the outrageous behavior of U.S. Ambassador Terence Todman, in his ef­ Regional warfare threat forts to get the Condor scrapped, goes beyond the limits of Faced with a nationalist backlash, and uncertainty tolerance. The Argentine Armed Forces have a proud tradi­ about Menem's ability to control it, the Anglo-Americans tion of involvement in scientific, technological, and infra­ are looking into the option of using lregional warfare as a structural development, and view the attack on the Condor way to smash the Argentine "menace." Argentina and II as an unacceptable interference in the country's internal Chile almost went to war in 1978, and, as proven by its affairs. role during the Malvinas War, Chile is quite willing to For the Anglo-American establishment, elimination of serve as an agent of British interests. In recent weeks, Argentina's Condor has become a test case for successful tensions among Chilean and Argentine Armed Forces have implementation of its technological apartheid policy of de­ intensified over a disputed piece of territory in the Argen­ nying Third World nations access to advanced technology, tine province of Rio Negro on the Chilean border. A under the guise of preserving "democracy" and "regional border incident in which an Argentine policeman killed a peace." An article published in the May 13 New York Times Chilean farmer heightened those tensions. lamented that the Menem government has failed to exercise It hasn't escaped the attention of Argentine military per­ sufficient controlover the Armed Forces, thereby permitting sonnel that while the United States, Britain, and Israel are the Condor II project to continue. After complaining bitterly demanding the dismantling of the Condor, they have no prob­ that Argentine Air Force officials "were able to prevent a lem in supporting Chile's military machine. According to the team of United States observers from conducting a full in­ same issue of El Informador Publico; the U.S. and Britain spection of the [missile's] research sites," the Times asserts are backing the development of a medium-range Chilean that the real issue is "the President's authority." It quotes a missile called the Rayo. The head of the Army, Gen. Augusto military expert that "I don't think there is a civilian official Pinochet, has just embarked on an internationalarms-buying in Menem's government who really knows what Condor II tour, with stopoffs in South Africa, Israel, and the United has." Kingdom. Military sources in Argentina report that Israel is engaged in building a Chilean aircraft factory which will Nationalists strengthened produce sophisticated bombers, similar to the French The Times tries to portraythe Condor II, and the military Mirage. institution itself, as dangerous menaces to the region, in order On May 13, the Spanish news agency EFE reported on to justify further assaults on Argentina's Armed Forces. But, statements by Chilean Navy Adm. Jorge Martinez Busch as the weekly intelligence sheet El Informador Publico re­ who asserted that Chile has none of the problems that other ported in its May 17 issue, the Bush administration's anti­ Ibero-American nations have, and sho�Ildtherefore be treated military policies and the attacks on the Condor II are pro­ as a privileged partner by the United States. Chile is a "lead­ voking intense discussion inside the Armed Forces on what er" Martinez said, which, among oth¢r things, "assures it a the institution's proper role should be, and strengthening certain degree of independence in the capability to generate nationalist resistance. El Inf ormador notes that "the Pentagon its own weaponry, and maintain its defense industries."

EIR May 31, 1991 International 49 Conference Report

Chinese unitydebated in Hong Kong by Webster Go Tarpley

The unity of China has always been a central theme in that Taiwan will soon be fu lly normalized and a new National country's philosophical tradition, which is among the oldest Assembly will be elected befOrethe end of the year. By Dec. and richest in the world. Already in the sixth century before 31, General Teng, who has served as a deputy since 1948, Christ, the school of Confucius was dedicated °to the philo­ will go into a well-deserved retirement. But in the meantime , sophical and economic education of ministers and officials General Teng predicts that national unity for China could capable of providing enlightened and progressive administra­ come within as little as two to three years. tion in the various states of the Chinese world. The goal of More important than the precise timing, is peaceful reuni­ Confucius, and of countless Chinese thinkers of later epochs, fication, avoiding war. General Teng says that the problem was to promote a peaceful,uni fied, and developing China as is best understood by the oldest living generation of Chinese an alternative to oligarchism and the endless internal strife statesmen, such as Deng Xiaopingand himself. This genera­ of the Spring and Autumn-Warring States periods . tion is concerned with restoring unity before they depart Today , almost two years after the repression of the de­ from the scene. General Teng notes that while the R.O.C. is mocracy movement in Tiananmen Square, a Chinese national looking for areas of agreement with the P.R.C., there are dialogue seeking the peaceful reunification of this great na­ still evident areas of conflict.

50 International EIR May 31, 1991 Taiwan Normal University to co-sponsor an international ports and inland waterways so as to create a three-dimension­ conference on "The Thought of Dr. Sun Yat-sen and the al transportation network. Dr. Sun, tC!' save China, was work­ Twenty-First Century," which was held in Hong Kong from ing for a political revolution and then an economic recovery April 25-27 . The conference was chaired by Prof. L.L. Chao pivoted on railroad building. This is because transportation of Taiwan Normal University and by Prof. Chiu Ling-yeong was in his view the foundation of industry , and railroads are of Hong Kong University. One extraordinary aspect of the the basis of transportation. Because China is such a huge conference was its participation. During the 1980s in Hong country, border lands like Sinkiang. Tibet, Mongolia, and Kong, it has not been exceptional to witness academic con­ Manchuria exist which are vast and h4tvea tremendous poten­ ferences involving both Hong Kong and the P.R.C. But this tial for agricultural abundance, and the only reason that they conference was remarkable because it was one of the very are underdeveloped is because of th� lack of railroads. Pro­ first to bring together the P.R.C., the R.O.C., Hong Kong, fessor Lin pointed out that accordini to Sun, San Francisco Macao-in short, the components into which China has been is an example of an American city that was underdeveloped divided over the past four centuries. Inviting R. o. C. scholars until the railroad was built. More �roadly, the economic to come to Hong Kong has its own symbolic content: Both prosperity of the U.S. was based pn the transcontinental for P.R.C. reasons and for British reasons, R.O.C. citizens railway linking the east coast with, the west coast, which have had to tread very lightly in the colony, and R.O.C. made possible immigration and the $ettling of the west. Dr. officials risk becoming persona non grata under certain cir­ Sun's conclusion to apply the American experience for the cumstances even today . Participants came from Beijing , benefitof China meant to concentrate on building portciti es, Shanghai, Canton, and other parts of the mainland, along railroads; canals, and water projects !for irrigation. with all of the leading R.O.C. universities. Other scholars Prof. Chen XiQi, also of the Canton Sun Yat-sen Univer­ came from Japan, the Republic of Korea, Singapore , and sity (and the chairman of the Guangdong Province Society Australia. From Europe came Prof. Paolo Santangelo of the of Sun Yat-sen Studies), spoke on th(: relevance of Dr. Sun's Istituto Universitario. Orie.o.We of Naples and Prof. I-Chuan ideas for th� world of the future. According to Sun, revolu­ Wu-Beyens of Belgium's Louvain University. In an Ameri­ tion and economic development we� the ingredients neces­ can delegation that included professors from Berkeley, Uni­ sary to make China a most progressive nation in a very short versity of Californiaat Los Angeles (UCLA) , and the Univer­ time. To do this, China must learn to separate the good from sity of Maryland, the Schiller Institute was represented by the bad in Western models. An independent, strong, unified its U.S. president, Webster G. Tarpley, and by Mrs . Leni China, cooperating with the nations Of the world on an equal Rubinstein, of the Schiller Institute China Bureau. basis, would be a factor promoting world peace. Other The atmosphere of the conference would have been in­ P.R.C. speakers included Prof. Chieu Chieh of the Canton conceivable a few short years ago. It must be remembered Sun Yat-sen University, who spoke about the 1912-13 Can­ that in contrast to divided Germany, where the two German ton republican newspaper, Min Sh�ng Ri Bao, which was states had established virtually normal relations by the early important for the movement that Dr. Sun led. Prof. Ge Rong­ 1970s, visits and dialogue between the P.R.C. and the jin, of the Department of Philosophy of the People's Univer­ R.O.C. were prohibitively difficult until last year. The con­ sity of Beijing and an officialof the China ConfuciusSociety , ference was therefore remarkable for its overall positive and presented a paper on cosmological IUld epistemological as­ constructive tone: As General Teng had suggested, today's pects of Dr. Sun.

Chinese are seeking areas of common ground and dialogue. , Among the scholars taking part, there was general acceptance Nationalism and reunification of the idea that Dr. Sun Y at-sen, his writings, his economics, Professor Jang of the Canton Sun Yat-sen University and his political ideas, are ofprimary importance for the observed that for Sun, the content Of nationalism was very future reunification of China. strongly anti-Manchuism and anti-feudalism. While Sun was not a socialist, there are socialist eklments in his thinking. Dr. Sun's method appropriate for today Sun, he stressed, is seen on the mainland as a progressive, An example is the paper presented on the first day by especially in his later phases when his anti-imperialist pro­ Prof. Lin Chia-yeou, of the Canton (P.R.C.) Sun Yat-sen nouncements became more explicit. Ifhere is therefore broad University, on "Thought and Ideas of Dr. Sun's Railroad agreement in favor of Sun Yat-sdll in both P.R.C. and Program." Referring to Dr. Sun's economic development R.O.C., but there are also differenccts of evaluation, includ­ plan for China published in the early 1920s, Professor Lin ing differences inside the P.R.C. q>ne point that must be pointed out the centrality of the railroad to all of Sun's eco­ borne in mind is that the P.R.C. is a socialist society, al­ nomic writings, where it functions as a symbol for modern­ though at a comparatively early stage of socialism. Further ization and industrialization. It is the railroad that allows merits of socialism are still destined to emerge, said Jang, goods to be freely distributed to producers and consumers. who expressed the view that the reun.fiedChina will maintain The railroad must be combined with the construction of ocean the socialist choice.

ElK May 31, 1991 International 51 Another P.R.C. speaker, Professor Ding of Shanghai, 1979, but at the same time recognized de facto by the U.S. recalled Dr. Sun's years of effort to break the power of the Congress through the Taiwan Relations Act! One example warlords that emerged in China after 1911. Ding was emphat­ cited by Fu is the August 1989 exchange of notes extorted ic that reunification must be achieved by peaceful means . by the Bush administration ftom Taipei, according to which Taking note of the R.O.C. reunification guidelines, he pro­ the U.S. arrogates to itself the right to board Taiwanese posed that the two sides of the Taiwan Strait learn from one fishing vessels and other ships in the north Pacificto monitor another so as to tul611 Dr. Sun's.�yenational of ism. their salmon catch and other results of drift-net fishing. This According to D�Deng Xiaopmg.'>l'949had proposed bullying, imperialist policy is justified by Washington with that the mainland 's ociety be democratized, but this proposal the argument that since many of the salmon come from U. S. was not adopted, leading to a situation where during the early rivers , the United States retains, if not sovereignty over the 1980s centralized control was excessive. According to Ding, salmon, at least a responsibility for the well-being of the too much scattering of power can also be a problem, and Dr. species! Sun would not have been happy with U.S. -style federalism. Fu also showed how the 1982 United Nations Law of the Professor Ding expressed agreement with recent remarks of Sea treaty defines the ocean floor as part of the "Common Gen. Chiang Wego of the R.O.C. (the younger son of the Heritage of Mankind," but excludes Taiwan from participat­ late Generalissimo Chiang Kai-shek) to the effect that Dr. ing in the management or exploitation of these resources. Sun's real message is autonomy not at the provincial level, According to Fu, if the U.S.S.R. can have three votes in the but at the lower or county level. The P.R.C. is seeking to U.N. General Assembly (with Belorussiaand the Ukraine), improve the quality of management by enlarging the private why can't 1.22 billion Chinese have at least two votes, sector, although some areas will remain in the state sector. Beijing and Taiwan? The transitional solution offered by Fu A central point will be to normalize the state of Chinese is that "Taiwan should be simply treated as a part of a divided society, which implies a reliance on Confucius. China-one China, divided into two parts . The situation is Certain areas of disagreement had become obvious. A not that different from that o£ the formerly divided Germany, number of R.O.C. speakers rejected the idea that a future or the divided Korea." To meet the needs of Taiwan, Tibet, China would continue to respect the socialist choice of 1949. Macao, Hong Kong, and perhaps Outer Mongolia, Fu pro­ Most R.O.C. speakers tended to criticize the P.R.C. 's "four posed"feder alism with multil-jurisdiction," with due process insists" as a genuine stumbling block to the progress of na­ and other clauses similar to those of the U.S. federal Consti­ tional dialogue. Professor Kao of the R.O.C. challenged the tution . P.R.C. concept of modernization: What does it mean when Another important R.O.C. contribution came from Prof. Deng Xiaoping says that his plan is to make the P.R.C. a Richard H. Yang of the Sun Yat-sen University in Kaoshi­ modem society by the year 2050? Does this mean the fulfill­ ung, who quoted from Dr. Martin Luther King to advocate ment of the four modernizations decided by the P. R. C. XIII a government of laws, and not of the caprice of persons, National Assembly? The P.R.C. wants to reach a per capita however powerful. According to Professor Yang, theR. O.C. income of $2,000 by the end of the century? That is not an must live up to this ideal by :instituting a process of judicial ambitious goal, but, is it feasible? An R.O.C. speaker re­ review through the Council of Grand Justice, which could called Deng's pragmatic remark that it does not matter what decide such matters as the terms of members of the National color a cat is , as long as the cat can catch mice. The cat that Assembly. Professor Mu of the R.O.C. talked about the catches all the mice on the mainland is precisely the socialist reform of higher education in the spirit of Dr. Sun. Debate system, he said, and this is what must be changed. was wide-ranging, with one questioner asking if the problem of stable democracy in Latin America could be solved Unequal relations with U.S. through the application of Dt. Sun's ideas. An insightful R.O.C. speaker was Fu Kuen-chen, Asso­ ciate Professor of Law at the National Taiwan University . Threat of the 'new world order' Fu , who has published on issues of internationallaw and who The dialogue for Chinese-Chinese rapprochement and hosts a weekly discussion program on one of thethree R. O. C. cooperation does not occur in a vacuum. Obstacles that can­ networks, presented a paper on "A Re-Unified China with not be neglected are the new and virulent phase of Anglo­ Multi-Jurisdiction." Fu pointed out that the division of China American aggressivity ushered in by the new world order has allowed the nation to be victimized in important ways, and the Gulf war. At the same time, much of the world is in including by the United States. The U.S. approach to Taiwan the throes of an economic breakdown crisis centeringon the is to consider the island a part of China when that suits U. S. Anglo-American world, but which is also very severe in the interests , and to consider Taiwan an independent country P.R.C., where 100,000,000 persons are now thought to be when that favors the United States. This is possible because unemployed, homeless, or otherwise "redundant" under Taiwan has been on the one hand de-recognized by the United present economic arrangements. These points were touched States Executive branch through the Carter China card of on in the remarks of Webster G. Tarpley of the Schiller

52 International EIR May 31, 1991 Institute, who spoke on the morning of the final day of the the productivity of labor. Quoting a recent study by conference proceedings on a panel chaired by Prof. John LaRouche, Tarpley showed how the Special Economic Wong of the Institute of East Asian Philosophies of the Na­ Zones add a new Wall Street-Adam Smith primitive accumu­ tional University of Singapore. The title of Tarpley's paper lation on top of several decades of communist primitive accu­ was "Dr. Sun Yat-sen's 'International Development of Chi­ mulation, guaranteeing a bad result. In this regard, the na' and the Economics of Asian Infrastucture Today ." Tar­ R.O.C. unification guidelines, which also refer solely to co­ pley began by noting that all persons of good will, be they operation in the economic development of southeastern motivated by Confucian benevolence or by Plato's concept coastal areas of China, need to be broadened. of the Good, must support the perspective of Chinese unifi­ But, it might be argued, where in today's world of eco­ cation as a factor for world peace and development. Since it nomic depression could the P .R.C..hope to obtain the modem has been stressedthat the reunification must be peaceful, we capital goods necessary for real development in the spirit must recall that Germany had accomplished peaceful reuni­ of Dr. Sun. Reviewing the crisis (J)f the Anglo-American fication only to be faced by a war in the Middle East with the financial structures, Tarpley directed the attention of the U.S. and U.K. taking the leading role in aggression and scholars to the potential of united Germany and of the newly genocide. Therefore China must be alert to such outside emerging nations of central and eastern Europe, with refer­ threats. ence to the U.S.S.R. Tarpley illustrated in detail the LaRouche Paris-Berlin-Vienna "Productive Triangle" pro­ Sun's infrastructure plan still valid posal for investment in magnetic rail, nuclear power, canals, Tarpley showed that not only the method, but many of telecommunications, and small and medium-size companies, the specificconclusions of Dr. Sun's 1921 infrastructure plan along with Japan, as the potential source of the capital goods retained their validity for today . Noting Sun's rejection of a unified China will require in order to be viable. Such a Marx and Adam Smith, Tarpley placed Dr. Sun in relation Eurasian development perspective i� coherent with repeated to the Leibniz-Hamilton-Lincoln school of economics as a references by Dr. Sun to the Indo-Epropean, Euro-African, branch of physics, represented by LaRouche today. All the and Eurasian scope that serious railroad building must attain. great continental states owe their national unity and develop­ In conclusion, Tarpley also adlllressed the question of ment to railroads and related infrastructure , Tarpley showed, population. Dr. Sun was an opponent of Malthus, since he citing Lincoln and the transcontinental railroad, Cavour in looked forward to a doubling of the Chinese population under Italy, Friedrich List in Germany and Austria, and the Trans­ conditions of technological modernization, and this empha­ Siberian railroad. By contrast, underdevelopment in Latin sis is also to be found in Chiang Kai-shek. Today, about half America and Africa is closely related to the lack of a conti­ of the P.R.C. territory is virtually empty , with only about 50 nental railroad grid. Sun is right in stressing the need for million people. Taiwan and Hong Kong have both gone from railroads, irrigation, and related infrastructure in such areas underdevelopment to a labor shortage in less than two genera­ as Sinkiang, for it is here that China can increase her arable tions, showing what would happen, on the mainland under land for the purpose of increasing food production on the conditions of in-depth development. So if there are not model of California's Imperial Valley. Today, the railways enough hats to go around, it is better to get more hats than to built should be magnetic levitation railways. If we judge start chopping off heads . from France, the U.S., and Taiwan, the P.R.C., with 1.2 According to one scholar, Beijip,g now says that its re­ billion people, would require between 240 and 600 nuclear peated references to the option of reunification of China by reactors to attain full development. This would give China force of arms are to be understood not as a threat to the the economic power of ten Japans, which explains why the R.O.C., but rather as a warning to various nations outside of Anglo-Americans, who are already hysterical about one Ja­ China who might seek to seize or annex Taiwan. pan, do all they can to block China's development. This conference was a significant international event in East Asia. Mrs. Rubinstein was interviewed by the Central 'Productive Triangle' option reviewed Daily News and the United Daily News, two of Taipei's Reviewing the past ten years of P.R.C. economic re­ largest news organizations, as well as by the ChIna Televi­ forms , Tarpley showed how the P.R.C. emphasis on coastal sion Service of the R.O.C. The Hong Kong and Taiwan press development alone must leave vast areas of the Chinese hin­ and other media carried detailed accounts of the exchanges terland in underdevelopment. The coastal Special Economic among the scholars. This conference was therefore a step Zones, like the Texas-Mexico border-area maquiladoras, are forward in the Chinese national dialogue leading to a new based on the premise of cheap labor, meaning low skills, low phase of rapprochement and pacification in which the eco­ productivity, and low real profits. In fact, the productivity of nomic and strategic ideas of LaRouche are destined to play mainland labor has probably declined since 1949. an important role . The confenc ;e organizers, and especially By contrast, Dr. Sun's method of building continental Prof. Chiu Ling-yeong of Hong Kpng, deserve a vote of infrastructure in depth is the surest route toward increasing thanks.

EIR May 31, 1991 International 53 •

domestic contradictions and its national power is declining, but militarily it is still the only power capable of standing up to the United States," Qian saidl Sino-Sovietsummit : The fact that Defense Minister Qin Jiw(:iwent to Moscow to meet again with Soviet DefenlseMinister Dmitri Yazov so troubled giantsembrace soon after Yazov's five-day viSit to Beijing May 3-8, indi­ cates that a sale of advanced SOlViet SU-27 fighters to China by Mary Burdman is in the works . China, cut off by the U.S. from arms sales after the Tiananmen Square masSacrein 1989, could become a major Soviet market. Both China and the Soviet Union treated the firstSi no-Soviet A partial solution to the disputes over the eastern section summit in Moscow in 34 years as a "major event." Chinese of the Sino-Soviet border along the Amur River, the site of Communist Party General Secretary Jiang Zemin was treated battles in the 1960s , has been ,worked out on the basis of as if he were a head of state. Jiang was accompanied by "mutual concessions," one Chfu.ese official said. The Chi­ Chinese Foreign Minister Qian Qichen and Defense Minister nese conceded the largest of the disputed border islands in Qin Jiwei, who conducted talks with their Soviet counter­ the Amur River to the Soviets, and the Soviets agreed in parts . Soviet CP head Mikhail Gorbachov emphasized principle that the border runs dpwn the middle of the river, Jiang's status by sending both Soviet Vice President Gennady which means that most disputed �erritory will revertto China. Yanayev · and party Deputy General Secretary Vladimir The potential for broader economic cooperation exists. Ivashko to greet Jiang at the airport. Ivashko had visited Mutual trade is minuscule in international terms, but, as Beijing in March to arrange the trip . Radio Moscow said in its sum�up of the summit May 20, During the visit, Jiang, who speaks Russian, met with the two economies "complemept one another" and there is Gorbachov at least twice, Prime Minister Valentin Pavlov, potential for expansion. About 40% of Soviet sales to China and parliament chairman Anatoly Lukyanov. are of machinery and equipme$t that the Soviets could not Mutual support for each other's stability was the basic market in the West because they are sub-standard, but are theme of the summit. As Ivashko had said on his visit to cheap enough to be attractive to �e Chinese. The Chinese can Beijing , the critical issue for both nations is to "secure their supply the Soviets with needed consumer goods, particularly rear" in a tumultuous world. In an interview with the Soviet textiles. Moscow also needs dhinese labor to develop the daily Pravda just before the trip , Jiang emphasized both mineral resources of Siberia. Tl;ms of thousands of Chinese peaceful coexistence and economic cooperation. China and already work in the Soviet Far East, which has a population the Soviet Union, Jiang said, have mutually complementary of only 2 million people. needs and favorable geographic conditions for cooperation. But what could become th4 most important element of Gorbachov and Jiang both agreed, Radio Moscow reported Sino-Soviet rapprochement is the potential for infrastructure May 17, that threats to stability in the U. S.S . R. and in China development in the vast eastern! region of Eurasia. This can are "of great importance for the stability of Asia and Europe , only happenif Europe consolidatlts its economicpotential �ong and thus for the rest of the world." the lines of Lyndon LaRouche's !Berlin-Paris-Vienna "Produc­ Jiang's visit was useful to Gorbachov for internal con­ tive Triangle" policy: There ares Ome aspects of the Sino-Soviet sumption, allowing him to emphasize to conservatives the discussions which could, with an !'economic engine" in Europe, importance of the Communist Party and socialism. By paying at some point contribute to Eurasiian development. so much attention to the leader of China's CP, he emphasized On the eve of Jiang's visit, the Soviet paperNezavisimaya' that the party is at the helm in China and that the Soviet Union Gazeta stressed the "importance bf our joint efforts to develop still has ties to external CPs. infrastructure along a vast wne" !including the Soviet Far East, Both leaders emphasized that their renewed friendship Manchuria, and Mongolia. The Soviets lookforward tocooper­ was not aimed at anyone , and that this was not a returnto the ation with small and medium-sire Chinese enterprises, the pa­ alliance of the 1950s. However, Radio Moscow commented per wrote. China badly needs Soviet industrial and transport

May 20, the two sides agreed in their opposition to "hege­ technology , including trucks , rail1engines and cars,and machin­ monism" and both opposed any form of international domi­ ery building technology, the article reported. nation-a swipe at George Bush's new world order. In addition, the last section of a rail link between the Central Asian republic of Khazalkhstanand Xinjiang in China Soviets can still stand up to U.S. will now be completed even mote rapidly than planned, prob­ The question is what the U.S., in its industrial collapse, ably by the end of this year. Thi� link will greatly shortenthe could possibly offer China. Washington would do well to European-southernChina rail r

54 International EIR May 31, 1991 The skeletons in the closet The drug lobby should be grateful to the couple. Mrs. von Scholer, a student of Teodoro Adorno and Max Hork­ heimer of the "Frankfurt School" and a former radical leftist Frankfurt drug lobby who is well-known for her hate-journalism, has pursued sys­ tematic vilification against Lyndon LaRouche and the work hollers against ADC of the ADC for fully 10 years, draw�ng on the dope lobby's slander networks in and around theAnti-Def amation League by Vo lker Hassman (ADL). The new First Lady, who prefers to work under her maiden name Holler, used the HR station for the first time in 1982 against the ADC and LaRouche, when she defended Frankfurt-on-Main, sometimes referred to as Europe's capi­ the liberal drug policy of her husband. Her vitriolic attacks tal of crime and drugs, is faced with a major scandal. Only against the ADC are understandable. The ADC opposes any three days after the inauguration of Mayor Andreas von move for legalization of drugs and ha� therefore attacked von SchOler, the First Lady of the city misused her position as a SchOler since 1981, when he was a spokesman for this policy journalist forthe local state radio Hessischer Rundfunk (HR) within the FOP. During the Frankfurt municipal elections in for an inflammatory libel against the Anti-Drug Coalition 1981, theFOP received a painful blow when it was branded and its co-founder, American politician and economist Lyn­ the "Free Drug Party," and von SchOler's party was subse­ don H. LaRouche. For more than 10 years, the ADC has quently kicked out of the city council. One yearlater, the HR been among the harshest critics and opponents of the liberal local TV channel stupidly slandered LaRouche as an "anti­ drug and security policies of Mrs. Ulrike von SchOler's Semite," because he described "Jewish" Meyer Lansky as a husband. gangster. Andreas von SchOler, a highly controversialliberal politi­ But there is more which the von Scholer clan does not cal careerist in Germany, who has switched from the Free like to be exposed. During his term as state secretary in the Democratic Party (FOP) to the Social Democrats (SPD), Interior Ministryunder Minister Gerhard Baum (FOP) at the succeeds the unfortunate Volker Hauff in the Frankfurt may­ end of the 1970s, von Scholer play�d an active role in the or's office. Hauff headed the city's first "red-green" magis­ destruction of efficient police and intelligence systems of trate, which included the radical ecologist and anarchist fig­ information. Even today, the blood pressure of anti-terror ure, thehead of the May 1968 riots in France, Daniel Cohn­ experts rises, when the names Baum or von Scholer are Bendit. Hauff's surprise resignation two months ago oc­ mentioned. The reasons for today's problems in German curred in the midst of a breaking scandal that linked city anti-terror efforts , as highlighted recently in the assassina­ officialsto local organized crime figureslike the Beker broth­ tions of banker Alfred Herrhausen and corporate official ers and real estate tycoon Josef Buchmann. Buchmann, who Detlev Rohwedder, can be traced back to these "data-protec­ has been named as the suspected "godfather" of organized tion" hysterics. Already in 1980, von Scholer campaigned crime in Frankfurt, acted in the background of big real estate against the current anti-terrorlegisla tion, and was a member deals in the red light district, between the city's magistrate of the liberal Humanistische Union, which has been pushing and "bordello king" Hersh Beker, involving millions in tax not only anti-police projects, but all>O pro-euthanasia cam­ revenues. paigns. Already a decade ago, theADC had exposed Buchmann The latest slander by Mrs. von Scholer was broadcast as an asset of the Meyer Lansky mob, chargesthat have been simultaneously with slanders of similar content nationally ridiculed by Mrs. von SchOler as "conspiracy theories" in her and internationally. While it is part of the attacks of the frequent broadcasts, thus covering up for the structure of drug lobby and the Bush administration against their political organized crime in Frankfurt and its connection to prostitu­ opponent, 1992 Democratic presidential candidate Lyndon tion, drugs, money laundering, real estate speculation, and H. LaRouche, it is also of local political significance. The political corruption. HR broadcast is an outburst of hate and lies against "the Even more embarrassing to Mrs. von SchOler is the fact LaRouche political sect," using "psychologist" Hella Ralfs­ that her husband added nothing to fullyclarify the scandalous Horeis as star witness against the LaRouche movement. deals between the city and the mafia during his powerful Ralfs-Horeis was formerly the editor-in-chief of the ADC's position as legal administrator of the Hauff magistrate. In his magazine War on Drugs, but she now collaborates with the inaugural speech, he did not even mention Frankfurt'srole drug lobby. This new defamation is considered an attempt as capital of the drug trade in Europe. Among von SchOler's to silence the only remaining oppO$ition to the methadone first acts in office were a reception for rock star Sting in the program which von SchOler is pushing "for ideological rea­ historic "emperors' chamber" in City Hall and a donation of sons" along with his coalition partner, the pro-dope Gree' DM 10,000for Sting's campaign to "save the rain forests." Party of pothead Cohn-Bendit.

EIR May 31, 1991 International ';5 Report from Bonn by RainerApel

Germans squeezed by two superpowers Bush has of the newly proclaimed Struggling against blackmailfromthe U.S. and U.S.S.R., U.S. "partnership in leadership" with Bonn's pragmatism could "hoist it on its own petard." the Germans, translates into "more German monetary support to the U.S. than ever before ." This is also seen by many iq German politics, but not admitted in pUblic. There is little illu­ On May 21, the overwhelming me­ have been much more active during the sion here ttiat the Bush administration dia line here on the talks Chancellor Gulf crisis in contrasting the Anglo­ will cease attacking German monetary Helmut Kohl had just concluded in American war buildup. The German and interest rate policies, or German Washington was that they resulted in government shouldhave used the mass state subsidies for the aerospace and harmony and a new start for "partner­ ferment in the streets against the war, telecommunications sectors, to ship­ ship in leadership. " rather than applaud its collapse under building, cCllal mining, and agricultur­ On May 22, German Economics an internationalmedia libel campaign. al producti

em Germany , was resolved to the take a "pragmatic" road, and it got advantage I of the unstable Soviet "satisfaction of both sides." squeezed by outside factors it could Union. It seemed, therefore, that two big not control or influence sufficiently. Slow ptogress in implementation problems the Germans had suffered What the German governmentdid was had already disillusioned many on the from during the past months-U . S. to adapt to the "all-Western consen­ near-term prospects of German rela­ charges of unreliability and lack of sus" defined in London and Washing­ tions with the Soviets, but deep disap­ solidarity during the war against Iraq, ton. At the same time, the Germans pointment emerged here when both and Soviet blockade of relations with stored away their own plans and proj ­ superpowers began actively preparing Germany-had been overcome. ects, waiting for a better world politi­ for another Bush-Gorbachov summit. That evaluation would be super­ cal environment to present them in The superpowers reestablished the ficial and wrong. The basic issue, public again. This is a form of ap­ special, ex�lusive relationship that is namely that both superpowers accept peasement, a "pragmatic cleverness," typical of W"e-summitperio ds. united Germany as a sovereign state , which may help to take away some As aIr¢ady evident in the late a partner on equal terms rather than a of the outside pressure, but it doesn't phase of the Gulf crisis, shortly before pawn that can be used against the other eliminate the source of the trouble. war began, :the Soviets adopted a utili­ superpower or at least be exploited for Membership in NATO is a cage tarian approach to relations with the one's own games, is not dealt with. for the Germans . The NATO treaty Germans. Intense contacts to Wash­ There certainly is more that could which also speaks of harmony of mu­ ington devbloped at the expense of be done by the Germans to underline tual economic values among alliance Moscow contacts to Bonn. their commitment to become a fully members, has always been interpreted Moscow tolerated a decline in dip­ sovereign state, to turn the formal re­ by the Americans as an instrument to lomatic contacts with Bonn and the unification of the two German states control the West German economy. collapse of, its trade with eastern Ger­ last Oct. 3 into a process befitting the The addition of eastern Germany has man firms ; and let the conflict over weight a modem industrial nation of not changed the U.S. views on the the joint project to find housing for 78 million people like Germany matter. NATO is seen as one of the troops-althoughGermany is funding should have. main instruments to keep the econom­ the project iwith DM 7.8 billion. The Germans could have better re­ ic power of united Germany under Germab concessions saved at least

sisted Anglo-American attempts to un­ control. part of the I contracts for construction dermine the motion for a genuine Eu­ The domestic decline of the U.S. firmsin Germany, this time. But there ropean defense, grouped around a economy has added aggressiveness to is the impression in Germany, again, reinvigorated Western European the American approach to Germany. that the Soviets are incalculable as Union. German foreign policy could One can be sure that the interpretation ever.

56 International EIR May 31, 1991 Australia Dossier by Lydia Cherry

A glimpse of Australian powerbrokers Smith, a Melbourne academic at the One investigation into financialmisdeeds has already fo rced Phillip Institute : of Technology. Prime Minister Bob Hawke to firea confidant. Speaking on April 18, Miss Smith charged that from her public accounts inquiry, she was convinced that "there are extremely powerful and privileged people favored [in tax avoidance] who An ongoing investigation before has also been called to testify in an may have some sort of control over the Western Australia Inc . Royal investigation that revolves around governments in as far as they provide Commission has forced Prime Minis­ Burke's use of a multimillion-dollar political funding." ter Bob Hawke to sack one of his account which may have been used She demanded that the names of "mates," the current ambassador to in paybacks, tax avoidance schemes, those who devised and benefited from Ireland and former West Australian and money laundering. schemes to withhold taxes be made premier, Brian Burke. Hawke had in­ Another party in the investigation public. sisted that there was no basis for the is Perth businessman Yosse Golberg , Smith's allegations then led the dismissal; other Labour Party offi­ who is closely associated with the in­ House Standing ! Committee on Fi­ cials, however, had maintained that fluential Leibler family in Melbourne nance and Public Administration to Hawke's inaction had caused untold (one of Prime Minister Hawke's best extend its investigation of internation­ political damage to the government, friends , by his own account, is World al profit shifting into an examination and Hawke finally gave in. Burke is Jewish Congress Vice President lsi into the use of withholding tax now being grilled for financial mis­ Leibler) . Golberg fled Australia sev­ schemes. Also coming to light dealings when he was premier, a post eral months ago and was last seen in through a parliamentary report, were which he kept up until two years ago mid-May in Madrid. multimillion-dollar schemes involv­ when he was offered a new job by The Australian weekly the Jewish ing the use of dffshore tax havens, Hawke, sources say, to get him out News charged in mid-May that "anti­ which are thought to be used by orga­ of the country, though apparently not Semites" have targeted Golberg . nized crime syndicates. soon enough. It is unclear how far this investiga­ One day aftetthe Melbourne Age Burke has been questioned at tion will lead into the Hawke-Leibler­ reported on Smith's charges, another length in the Royal Commission hear­ Sir Peter Abeles circle, where some friend of Prime Minister Hawke's and ings that began in mid-April; so has Australian sources think it is headed. the brotherof Isi Leibler, Mark Leibler, Laurie Connell, the former head of the (Abeles is an Austrialian transport publicly blasted her. Miss Smith's "dia­ collapsed merchant bank Rothwells, magnate.) These sources, however, tribes directed against non-existent who faces 78 charges of corporate note that numerous inquiries over the powerful and privileged people who al­ malfeasance and has let it be known last decade had seemed to be headed legedly control governments and clev­ he will drag more than a few down in this same direction but were shut erly deceive the ATO [Australian Tax with him. Connell, according to one down, through one legalistic means or Office] are totallywithout foundation," of the hearings' witnesses, has a pho­ another. he said. tograph of himself with Queen Eliza­ Numerous investigative reporters , Mark LeibleI1is a senior partner in beth hanging on one wall in his office. as well as other Australian observers , the law firmArn�ld Bl ock and Leibler The witness alluded to the high level are convinced that were any of these and an adviser to the tax commission­ of protection Connell enjoys when he investigations to be carried out fully, er. He is on the National Tax Liaison told the commission: "What I'm tell­ they would lead to the narcotics trade, Group and is the chairman of the Law ing you is, it wouldn't have surprised in particular the transshipment of ille­ Council of Australia's Taxation Com­ me who I saw there ." gal drugs coming out of the People's mittee. Already Connell's testimony has Republic of China. He went on ' to say that Smith's forced a humiliated Prime Minister A second, seemingly very impor­ claims that huge amounts of taxes Hawke to admit that he had misled tant investigation surfaced in the Aus­ were being avoided through the use of Parliament about the timing of his tralian press very brieflyin mid-April. withholding tax provisions were "stu­ 1987 announcement rejecting a gold This investigation was stimulated ap­ pid, outrageous, and without foun­ tax . Corporate high-flyer Alan Bond parently by the findings of Barbara dation."

EIR · May 31, 1991 International 57 Dateline Mexico by Carlos Cota Meza

The case of the Negroponte cable : tary Jaime Serra Puche , who on May A confidentialmemo fromthe u.s. ambassador has been made 14 indulged in a drunken binge in public, which points to Washington's true plans fo r NAFTA . Washington, to celebrate the approval of "fast track authorization" of the NAFTA negotiations by several con­ gressional committees. The "fast track" vote was scheduled to go to the full floor of the U.S. Congress during the week of May 20. On May 13, the Mexican weekly useful lever , in continuing to pressure Notwithstanding this weak-kneed Proceso created an uproar here when for a still greater opening of the Mexi­ self-censorship, many Mexicans are it published a confidential memoran­ can economy." asking questions. Chief among them dum by U. S. Ambassador to Mexico The memorandum gives added is, who leaked the memorandum to John Negroponte, which was sent to weight to the arguments of Mexico's Proceso? rrhere are some who insist his immediate superior at the State many critics of the trade agreement, that NegrQponte never imagined his Department, Assistant Secretary of since Negroponte in fact admits Pl'e­ confidential memo would be released State for Inter-American Affairs Ber­ cisely what these opponents have been to the Mexican pUblic. Others sug­ nard Aronson. charging, that the Salinas government gest, however, that Negroponte-­ In the memorandum, Negroponte has capitulated to the pressures, insin­ hardly an lingenu in these matters­ discusses the significanceof the North uations, and "friendly proposals" of was well awarethat the embassy's fax American Free Trade Agreement the Bush government. line could: be monitored from points (NAFTA), the orientation of the Sali­ Despite the fact that the memoran­ inside MeKico, apart from the U.S. nas de Gortari government, and the dum was written with a certain objec­ State Department. This latter hypoth­ future of Mexico's future . tive tone, Foreign Affairs Secretary esis continues that it was thereforeNe­ In point number four of the docu­ Fernando Solana called the U. S. am­ groponte ;himself who wanted his ment, the U.S. ambassador asserts bassador to his office on May 13, to memorandum leaked. Why? that "Mexico is in the process ofdra­ request an explanation of the Proceso In point number 13 of his memo­ matically changing both the substance expose. The diplomat'S response was randum, the U.S. ambassador men­ and image of its foreign policy. It has apparently less than satisfactory , with tions what Salinas de Gortari has re­ gone from a nationalist and protec­ the result that Secretary Solana's of­ peatedly : stated before foreign tionist ideological viewpoint, to a fice issued a communique on May 14, audiences, although always in pri­ more pragmatic , competitive, and stating that the confidential memoran­ vate . "Salinas made clear his view that outward view of world problems ." dum "has not been denied," and a negative; vote [on NAFTA] would Point number six says, that "From would require clarifications. play into the hands of the left and of a foreign policy standpoint, the Free The communique added: "The critics of U.S.-Mexican relations. Trade Agreement would institutional­ Mexican government considers ab­ And that this, perhaps more than any­ ize acceptance of a North American ori­ surd any presumption that the possible thing-said Salinas-would repre­ entation in Mexican foreign relations ." negotiation of a free trade treaty with sent a lost ,opportunity that might not And in point number seven, Ne­ the United States could alter the orien­ present itself again for a while. Simi­ groponte asserts that the U. S . 's inten­ tation and fu ndamental goals of this larly, Mexicans would be offended if tion is to consolidate the economic policy. . . . Under no circumstances the votes on the General Agreement model of the Salinas government. "On will Mexico allow its foreign policy on Tariffs! and Trade (GATT) Uru­ the economic front, a Free Trade to be negotiated." guay Round and on Mexico were sep­ Agreement could be viewed as an in­ While all this is going on in the arated . This would be like 'spitting' strument for promoting, consolidat­ upper layers of the government, nei­ on Mexico, said Salinas." ing, and guaranteeing the continuity ther the Mexican Senate nor House The U,S. Embassy, it would ap­ of Mexico's economic reform poli­ has taken up the issue. Neither has pear, has thus deftly put in the mouth cies , beyond the Salinas administra­ the ruling PRI party , nor its affiliated of the Mexican President its own argu­ tion . I think it is reasonable to assume unions and other organizations. ments for the urgency of passing the that the FTA negotiations will be a Equally oblivious was Trade Secre- fast track authorization for NAFTA.

58 International EIR May 31, 1991 Panamareport by CarlosWe sley

The Noriega papers aboard a plane piloted by DEA infor­ Court filingsare showing that U.S. offi cials encouraged drug mant Barry Seal and generated in a sting trafficking to finance the Contras. Did Bush know? of the Medellin Cartel and Sandinistas officials, be provided to the Contras." Also, what does former CIA direc­ tor Bush know about the charge made in the court documents , that "The Central Intelligence Agency has a long history Gen. Manuel Noriega could yet end insurgency campaign in Nicaragua." of assistance to narcotics traffickers"? up being the reason for the downfall of This campaign against the Sandin­ Or about the charge that "CIA agents George Bush. A 107-page memoran­ istas "was funded with drug money," who branched out on their own into the dum filed by his attorneys before Judge the papers continue . "The U.S. was opium-smuggling business were pro­ William Hoeveler of the U.S. District clearly involved in a 'guns fo r drugs' tected by the Agen�y"? Court of Southern Florida, provides policy. Whatever it took to win in Nic­ Despite Noriega's wamings, the strong evidence that it was the U.S. aragua" (emphasis in original). "The CIA used pilots to illegally transport government, not Noriega, that engaged logic of having drug money pay for weapons to the CoIitras, although it was in illegal drug trafficking. the pressing needs of the Contras ap­ aware that those same pilots "were also According to thedocuments , sub­ pealed to a number of people who be­ transporting drugs to the United mitted under the Classified Information came involved in the covert war. In­ States. " Procedures Act (CIPA), "cocaine and deed, senior U.S. policymakers were It was not because of his alleged marijuana were flown directly into the not immune to the idea that drug mon­ drug trafficking that Noriega incurred U.S. [military] bases in South Florida" ey was a perfect solutiofl to the Con­ the wrath of George Bush. In fact, by pilots employed by the United States tras ' funding problems ," they say . "United States law enforcement agen­ for the illegal Nicaraguan Contra resup­ "The State Department selected cies considered Noriega to be a friend ply operation. "Intriguingly, the head four companies owned and operated of the United States" a view "articulated of the South Florida Drug Task Force by narcotics traffickers to supply hu­ by DEA AdministratorJack Lawn, who interdiction project during these years manitarian assistance to the Contras . in the past had written Noriega letters was none other than Vice President The companies were: of commendation ror his help in fight­ George Bush." • "SETCO Air, a company estab­ ing the war on dIvgs." Noriega got in Did Bush know that drugs were lished by Honduran drug trafficker trouble because he refused to go along being brought into the United States, Ramon Matta Ballesteros; with the U.S. Contra policy. (It was by American agents, during his • "DIACSA, a Miami-based air also because of his opposition to the watch? That's the sort of question that company operated as the headquarters Contra policy that American presiden­ should be posed to CIA director nomi­ of a drug-traffickerenterprise for con­ tialcandidate Lyndon H. LaRouche, Jr. nee Robert Gates during his Senate victed drug traffickers Floyd Carlton was thrownin jailby the Bush govern­ confirmation hearings. The evidence and Alfredo Caballero; ment.) "General Noriega is first and in the Noriega papers certainly sug­ • "Frigofificos de Puntarenas, a foremost a Panamanian nationalist," gests Bush knew or should have firm owned and operated by Cuban­ the court papers affirm. "In order to known about this traffic. American drug traffickers who were maintain the independence and sover­ Besides the South Florida task also CIA operatives; eignty of Panama, General Noriega force, "Bush held a variety of high­ • "Vortex , an air service and sup­ struggledto m:rintain in balance, Amer­ profile anti-drug positions in the ply company partly owned by admit­ ican Imperialism on the right, and Cu­ Reagan administration," say the docu­ ted drug trafficker Michael Palmer. " ban Expansionism on the left."To this ments, which were released by the The court papers also show that end, he even "be¢ame the CIA's man Justice Department in mid-May, after Drug Enforcement Administration of­ in Panama" and, hlthough "ultimately, it excised extensive portions, particu­ ficials testified last July before the this balancing act failed . . . Noriega larly in the sections relating to Bush's House Judiciary Subcommittee on succeeded in maintaining his country's contacts with Noriega. However, "the Crime, that "Lt. Col. Oliver North sug­ independence longer than any other na­ priority item on Bush's agenda was gested to the DEA in June 1985 that tional figure since the end of the Second not to be drugs, but America's pro- $1.5 million in drug money carried World War."

EIR May 31, 1991 International 59 InternationalIntel ligence

nificantfeatures of the investigation. tiona! party chairman of the German liberal Are changes in the wind The Bulgarian governmenthas recently FreeDemocratic Party (PDP). in Egyptianpolic y? approved the request of a Washington-based Meisner said that he had been forced to policy group to search Bulgarian intelli­ live and work under the communist SED Times Egyptian Foreign Minister Abdel Meguid gence files, and the reports that Sofia regime of East Germany for 43 years, but was elected president of the Arab League, "has made contact with foreign intelligence never in his life had he witnessed "such im­ at a meeting of Arab foreign ministers in services including the CIA." The theme of pertinent :attacks by any of the SED politi­ the article is that Agca was an agent of the Cairo on May 15. This is the firsttime in 12 cians on the teachings and life of the Catho­ years that an Egyptian has held the top post, Bulgarian intelligence and the KGB, which lic Churc� and the Pope." He said that the and may signal an enhanced role for the wanted to kill the Pope because of the activi­ Lambsdotff affair proved that after the fall European Community in the Mideast, a pol­ ties of Solidamosc in Poland. of Marxism, liberalism is a "comparably Times icy with which Meguid has been associated. But what the does not report, is grave threat mankindto ." Thereare other signs of a possible policy that during the previous week, some of the Defending the Church's views on popu­ shift in Egypt, including the abrupt an­ most authoritative Vatican leaders, inelud­ lation growth and abortion, Meisner ques­ ing two cardinals-former "foreign minis­ tioned thd monilcharacter PartY nouncement on May 9 by the military com­ of a likethe mand that Cairo will be pulling all of its ter" Achille Silvestrini and Cardinal Oddi, PDP, which chose to make the "legalization troops out of Saudi Arabia, effective imme­ as well as Msgr. Angelo Rizzi, present Nun­ of killing unbornhuman lives a central issue diately. This is being widely characterized cio to Sofia-have rejected this simplistic of its policy." as an effortto deliver a political shock to the explanation. Many Vatican-connected me­ Gulf states and Washington. dia are pointing to the necessity to investi­ gate not only the Soviet Union, but also the Among the motivating factors being dis­ Conflict builds between cussed is that the Kuwaiti emir has reneged "other superpower." Monsignor Rizzi stated at the beginning of May, "I never believed on promises of granting Egypt 10% of all GreeCe and Tu rkey contracts for its reconstruction, and has re­ in an involvement of the Bulgarian authori­ ties in the attempt." neged on compensating Egyptian workers Tbreate.�g remarks by Thrkish President The Catholic daily Avvenire recently for their losses in Kuwait. On May 8, the ThrgutOZal , in response to anti-Thrkishpro­ official Egyptian newspaper Al-Ahram de­ pointed to the fact that Agca had been tests of cheeks and Cypriots during his re­ nounced the We stern press for an anti-Arab trained in Libya by former CIA undercover cent trip to Australia and New Zealand,have agent Frank Terpil. Terpil used to take orders campaign against Algeria and Libya "now createdan uproarin Greece. that the campaign against Saddam Hussein from former CIA covert operations director azal renewed Thrkishclaims on the Do­ Theodore Shackley, currently an informal as a bloodthirsty Arab is nearing an end." dekanes islands-Rhodes and 11 other is­ adviser to George Bush on intelligence mat­ Also in the firstweek of May, Egyptian po­ lands ofti the southern coast of Thrkey, lice arrestedSheik Nasir al-Sabah, a relative ters. Rome observers pointed out that the which belpngedto the Ottoman Empireuntil issue of the attempt against the Pope could of the Kuwaiti emir, for possessing and traf­ 1912, were under Italian occupation for 35 be used today to prevent a dialogue between fickingin narcotics. years, � then were given to Greece in the Vatican and Moscow. 1947. "Had I been in power then, I would have conquered the Dodekanes," azal de­ Italy probes attempted clared. "We are a nation of 56 million and Archbishop scores 'grave you only one of 10 million, you can't match assassination of Pope us, so be peaceful! We have pushed through threat' of liberalism therights of the Thrksin Bulgaria, and now, "Ten years after Pope John Paul II was shot, Greeceis on the agenda." the Italian government is reopening its in­ Not even the communists would have dared azal said the Greeks are afraid of the vestigation into who and what was behind to attack the Pope as the liberals are doing Thrks: "We delivered them a blow after the the Thrkish gunman Mehemet Ali Agca," now, charged the Archbishop of Cologne, First World War, then they received the 12 reportedthe New Yo rk Times on May 19, in Cardinal Meisner, in an interview with the islands thlltwere ours as a presentfrom Italy, one of the first reports in the U.S. press to journalof his diocese reportedthe by German but in Cyprus,we put an end to theirdreams acknowledge the new activities of the Italian Catholic publicationDeutsche Ta gespost on of Enosis. preventing the annexation of the magistracy and religious and political lead­ May 16. The cardinal responded in harsh island by Greece, but they are still not giving ers around the St. Peter's Square murder words to a recent attack on the Pope and the up. It doesn't matter behind whose wings attempt on May 13, 1981. The Times article population growth policy of the Catholic they may seek protection-they are no obscures, however, some of the more sig- Church by Count Otto Lambsdorff, the na- match for:us ."

00 International EIR May31, 1991 • SWEDEN'S King Karl Gustav XVI maintains that, with the unifica­ tion of Europe, monarchies will play a greater role, the Scotsman reports. The pretender to the Romanian throne, King Michael, gave a recent Greek ForeignMinister Andonis Sama­ be in Lisbon at the end of May to sign the radio address to the Romanian na­ political agreement for a cease-fire with the ras responded to these attacks in an inter­ tion, and Princess Maria Louiza, sis­ To Vima, communist-dominated MPLA. As part of view with the Athens daily saying ter of the pretehder to the Bulgarian that Ozal's remarks were a "sign of the in­ the deal, the total army of Angola will be throne, made :a visit to Bulgaria. limited to 50,000soldiers . "This means that tention of the Thrksto reinvigorate the spirit Crown Prince Alexander of Yugosla­ one main priority would be to create new of the Ottoman Empire hegemony. But Ozal via has also re-emerged into public jobs for 250,000 people who are going to has not yet declared that he also intends to view. conquer Belgrade and Vienna." put down their weapons on both sides," said Savimbi. • SOUTHERN IRAQ is in far "Ittook 16 yearsto destroy,"he said, "and more catastrophic condition than the we will need many years also to rebuild. But China's courts rule northern Kurdish regions, reported a we have a plan centered on infrastructure, delegation of German Social Demo­ euthanasia is legal such as transport, energy, trade, agriculture, crats after its returnfrom a tour of the and the formations of cadres in two to three Mideast. They criticized the disinter­ The Hangzhong Court in the People's Re­ years.... We have plans to build darns on est of the world media in southern public of China (Shaanxi Province) found a the rivers, to reorganize the railway system. regions of Iraq. man and his doctor innocent of murdering This cannot be done in one day. From the the man's mother, while judging their acts foreign countries we do not ask only for in­ BRITAIN'S "a deliberate act to deprive a citizen of her • Tory Party lost its vestments; we also ask for technology and fifthby-election in a row on May 16. right to life," the official news agency Xin­ help in trainingnew technicians." hua reported on May 10. In Monmouth, considered the second Savimbi wants to form a regional coop­ safest Tory seat in Wales, the party The man had asked the doctor to kill his eration zone with South Africa, Namibia, lost badly to Labour. There was a mother when she was diagnosed as having Zambia, Zaire, and other nations. incurable liver cancer, and the doctor did 12,000-vote swing in favor of the La­ so, with injections. They werearrested and bour Party . charged with murder, held in jail for two THE NORTHERN years, but then released in 1989 on bail. The LaRouche case covered • part of So­ court has now ruled that the liver disease malia declared its independence on really caused the death, and that the injec­ by human rights magazine May 18, and will be known as the tions "only accelerated" the death, describ­ Somaliland Republic. Abdurahem ing the consequences as "minor." La Vo u des Sans Vo u, a new magazine pub­ Ahmed Ali will be the President of China's endorsement of euthanasia places lished by the International Committee for the new republic. it in the ranks of those U.S. states that have the Respect and Application of the Human GERMAN POLICE already accepted this Nazi policy. There is Rights Charter, has a two-page report in its • intervened currentlya bill before the state of Washington current issue on the political frameup of at the last minute to block the escape which would allow "physician-assisted sui­ Lyndon LaRouche and associates, entitled to Moscow of several top leaders of cide," and in three recent cases (Connecticut, "The LaRouche Case: America's Dreyfus the former communist East German New Yo rk, and Michigan), cases similar to Affair."The organization is based in Geneva regime. The four were apparently that in China were not even prosecuted, and and Paris. seeking to avoidtrial in the reunified the murderers got offscot-free. "The trialis the biggest pOlitical scandal Germany. FonberMinister President in the U.S. in the past years," the report Willy Stoph, former Defense Minis­ concludes. "Mr. LaRouche and his co­ ter Heinz Kessler, and two other se­ Angola'sSavimbi vows to thinkers were jailed because of their ideas. nior defense ministry officials were Their case proves that any dissident voice arrested on May 21 . rebuild infrastructure which defends justice, the humiliated, and the oppressed, is muzzled today by an ad­ • BORIS YELTSIN'S headquar­ "Our program will be based on an infrastruc­ ministration using the Justice Departmentto ters was blown up on May 17, as the ture plan to rebuild Angola," said Jonas Sav­ political ends. . . . election campaignin the Russian Re­ imbi, the head of the UNITA anti-commu­ "Mr. LaRouche, in the footsteps of Lin­ public enters a "hot" phase. "We nist resistance movement, in an interview coln, Martin Luther King, and Leibniz, is couldn't have gotten a better election with the Italian daily Corriere della Sera on the American Establishment's enemy num­ present," a campaign activist told the May 14. ber one, a man who represents the 'power Washington Post. Savimbi is on a European tour, and will of those without power.' "

EIR May 31, 1991 International 61 �ITillNational

House capitulates to fast track, but fight expands by Nancy Primack and Ronald Kokinda

>,

....u.s. Houseof Representatives put its stamp of approval At the conference, spe�rs presented the results of an Oft a policy that will destroy the work forces of Mexico and EIR study entitled " Auschwitz below the border," which had -..UDited States on May 23, by supporting a "fast track" for been released at pressconferences in Washington, D.C. and • North American Free Trade Agreement (NAFTA) which Mexico City on May 7, which shocked the audience. Over GeorgeBush will negotiate with Mexico. The House defeat­ 200 activists including farmers, trade unionists, civil rights CdI,fouse Resolution 101, sponsored by Rep. Byron Dorgan leaders , and others, also heard first-hand reports from Mexi­ (J>.N.D.), which would have denied the fast track negotiat­ co and Canada on the devastating effects NAFTA would have i., authority, by a vote of 192-23 1. on these economies. Although the Senate could still act to stop the fast track, Ruben Cota, an executive member of the Thero-American �tion there has been assumed to be weaker than in the Solidarity Movement, and Alberto Vizcarrra, a state con­ u.:.e. As a result, George Bush now has a free hand to push gressman from Sonora, Mexico spoke on "Why Mexicans dtlouah a tradeagreement which is estimated will cost as many Are Against NAFTA." Cota explained that Mexican Presi­ ..:� -of jobsthe of American workers in key industries such dent Salinas de Gortari is cooperating with Bush in the "free __,_ to and textiles, and spread abysmal living and working trade" destruction of Mexico. He described the factional fight c...ntioos in Mexico, as seen in the maquiladoras along the in Mexico over the last decade, reporting on Lyndon t1;��-Mexico border. These conditions, where pay is 59¢ an LaRouche's meeting with then-Mexican President L6pez lPJr, are so borrendous that Lyndon LaRouche, economist and Portillo, and on LaRouche'� subsequent Operation Juarez �tial candidate for 1992, has called it the "Auschwitz proposal for reorganization of Thero-America' s foreign debt. belowborder." the In adopting the fast track, once Bush submits Vizcarra presented the details of the horrifying effects of • �, Congress will not be able to amend it, but can still free trade on Mexico already. He showed how the pattern of IIjICtit in its entirety in an up or down vote. illnesses has spread from the Poorerareas of southern Mexico

to areas in the northwhere the maquiladoras are. Vizcarra said Weucbeleads the opposition that in many areas, 25-30% of the population has no clean The political movement associated with political prisoner drinking water, and no sewage treatment. Cholera, hepatitis, LaI'ouche has been leading the opposition to NAFTA, andAIDS are spreading. The, projects for industrial develop­ JXpilsingthe slave labor that exists in themaquiladora plants, ment have been axed by the Iittemational Monetary Fund and dttailing the genocidal consequences of Bush's free trade poli­ instead the "free trade" system of slave labor is the norm. a... p:ovidiAg the policy alternative to a "free trade" bailout Over 100 activists then ldlbied Congress to stop the fast of 1be major banks, and mobilizing public opposition. track and NAFTA. Over 125 cpngressional offices were visited J...tIItou(he sent a taped message to a conference held on the where aides, and several con�ssmen personally, were put on ....weekend before the House vote, stressing the unique role notice that the free trade bill with Mexico would createa slave .tIidl he aDdbisassociates have played over the last 25 years labor economy. Many were shUen by the charges as the lobby­ ...exposing the genocidal policies of the Anglo-American es­ ists talked about the conditions that already exist in Mexico. *ahment. He urged participants , "Get out there and fight!" Several aides had read parts of the EIR Special Report already

Q Natiooal EIR May 31, 1991 orhad heardabout it through the Capitol Hill grapevine. Others posed both the fast track and free tr.de although it is an promised to get their congressmen to read it. Although some open secret that Kirkland is a membe� of the grouping that shouting matches erupted, most offices welcomed the informa­ developed the free trade policy-the T�lateral Commission. tion;some congressmenwere particularly grateful toget a Mex­ He is a director and member, as is David Rockefeller, of the ican perspective, others that issues which they hadn't consid­ Citizens Network for Foreign Affairs . The National Agricul­ ered, such as the spread of disease which will result from ture Advisory Committee, a subsidiary, of this group, has NAFTA, were brought to their attention. come out strongly in favor of the fast track and has lobbied and testified in favor of NAFfA. Bush Democrats The choice in the fightover NAFfA is between develop­ Anglophile armtwisting ment and genocide. That the House opted for the latter result­ Several congressmen have commented privately that they ed largely because the House Democratic leadership-the have never seen such White House pressure as on this issue. Bush Democrats---:were Bush's loyal opposition. Rep. Dan The Establishment has mobilized its assets, and on May 14, Rostenkowski (D-lll.), chairman of the House Ways and Queen Elizabeth II addressed the issue in her speech to ajoint Means Committee , came out and supported fast trackon May session of Congress, promising that Britain would ensure 1. House Majority Leader Rep. Richard Gephardt (D-Mo.) that continental Europe did not oppose free trade. Bush is backed the fast track about a week later. They accepted anxious to push through NAFfA because the Establi�hment Bush's assurances that the agreement will protect human strategy for keeping its bankrupt financial system afloatrests rights, and that labor, environmental, and safety standards on the free trade looting arrangements� The pressure is also would be met by the Mexican government. intense because the opposition at the grassroots level is real . Gephardt, who based his 1988 presidential bid on a plat­ Many of Gephardt's, Dorgan's, and Kirkland's constituents form of Jap-bashing, has no problem with slave labor. The have expanded their fight against the fast track to a fight conditions that exist in the runaway U.S. factories, just over against NAFfA and free trade . the Mexican border, are well known to Gephardt who was The United Auto Workers Local 311 of Kansas and Mis­ sent three times by his labor backers on fact-findingtours of souri has succeeded in getting several city and county coun­ these maquiladoras. On one tour, his wife vomited at seeing cils to pass resolutions against the fast�track, and the resolu­ raw sewage puddles outside the cardboard shacks where tions expand the concept to a fight against the free trade Mexican workers live. agreement. The resolution warns that the NAFfA agreement As the House leadership led the betrayal, the national "will have a long-lasting, unprecedented and enormous effect offices of the AFL-CIO put out the word that opposing the fast on our respective economies and every community in North track was a "lost cause." Except for constituents activated by America ....We are concerned about the social and eco­ the LaRouche movement, there was no grassroots mobiliza­ nomic impact a trade agreement among Mexico, Canada, tion. These constituents were told by congressional offices and the United States will mean to our citizens." that they were the only ones who had pressured them all Labor leaders representing thousands of workers from along. The May 23 Washington Post reported, "Other fast the Northeast have also issued a statement to Congress stating track opponents have complained privately that lobbyists for that "we wish to express our wholehearted and unanimous the AFL-CIO, the main component of the anti-fast track disapproval of the North American Free Trade Agreement, coalition, conceded defeat several weeks ago and left the soon to be presented to Congress. . . .' It is abundantly clear nuts and bolts of knocking on congressional doors to others." that the freetrade policy is really protectionism for the banks The other reason the fast track passed was the failure and 'runaway shops.' " to offer an alternative to free trade. The most impassioned Canadian labor leaders representing over 500,000 work­ speakers against slave labor and labor exploitation could only ers have also endorsed a still stronger statement to the U.S. say, "I'm for Americans having jobs. I support the middle Congress: "Canada's loss of 285,000 jobs to 'free trade' class against the multinationals." No one attacked free trade . should be convincing proof that it does not work. . . . Mexi­ They said, "We want fair trade . If we're going to open up can workers and their families can never hope to rise out of our markets, they had better open up theirs ," and so forth . poverty if the slave labor conditions contemplated by the Dorgan , the sponsor of the anti-fast track resolution, ques­ FfA areimplemented ." tioned the worth of a promise from Bush, but wrote in a Agriculture groups have joined im the fight, with over commentary in the May 20 Washington Post, "I am not op­ 125 publicly opposing the fast track, iIocluding the National posed to negotiating a free trade agreement withMexi co, and Farm Organization, the National Farmers Union, the Ameri­ I am not opposed to continuing negotiating in the Uruguay can Agriculture Movement, the National Milk Producers Round of the General Agreement on Tariffs and Trade Federation, and the National Peanut Growers . The California (GATT). I strongly support freetrade ." Women in Agriculture, representing thousands, voted to op­ AFL-CIO President Lane Kirkland has nominally op- pose the fast track.

EIR 'May 31, 1991 National 63 · Queen Elizabethvisit celeb rates Anglo-American imperialall iance

by Kathleen Klenetsky

As EIR predicted she would in its May 10 issue, Queen of the United States colluding with a direct descendant of Elizabeth II used her first official visit to the United States American independence's archenemy, King George III, to in 15 years to celebrate the revival of the Anglo-American destroy another country in order to reassert Anglo-American "special relationship" through the savage imperialist adven­ imperial dominance over the entire developing sector. Had ture in the Mideast called Operation Desert Storm. the American colonies lost their fightto free themselves, they While millions of Iraqi women and children were facing would have faced the same grim future that now faces Iraq . deathby starvation and disease as a directresult of the Gulf war When the Queen visited George Washington's home, and the continued economic sanctions , the Queen and her host, Mount Vernon, a band played "Dixie," the marching tune of President George Bush, took every opportunity to praise the the British-backed Confederate troops in the Civil War. But Anglo-American collaboration that brought about this catas­ the Queen doesn't need Rebel music to convince her that, trophe.. after 200-odd years , the United States is firmly back under As you will see from her address to Congress, which we British control . With Operation Desert Storm, Bush has ef­ print below, the Queen could hardly restrain herself from gloat­ fectively declared that the U.S. is at the service of British ing about how, once again, the British were able to manipulate imperialism. The recolonization of the United States is un­

the United States into fighting a warwhose objectives ran com­ derscored by new revelations ofjust how much of this country pletely counter to the republican principles upon which the the British now own. United States was founded. When a Kuwaiti court sentences According to an advertisement placed in the Washington some poor wretch to 13 years in prison for the "crime" of Post by the British government May 14, British investments wearing a Saddam Hussein tee shirt, you know that Operation in the U.S. "are roughly double the size of Japanese invest­ Desert Storm had nothing to do with protecting democracy. ments ." Last year, the ad noted, "the Brits [sic] increased , The Queen set the tone in her remarks at the official White their lead of almost $21 billion to $122.8 billion-a stag­ House welcoming ceremony May 14. "It gives me particular gering figure by any yardstick, especially considering that pleasure that this visit comes so soon after a vivid and effec­ British investment in the U.S. in the early '80s totaled just tive demonstration of the long-standing alliance between our $9.8 billion, not even a tenth of last year's figure." two countries," the Queen asserted. Eager to show his alle­ giance to the Crown, Bush began his remarks at the ceremony ' with a gushing reference to Great Britain as "this mother Documentation country"-a designation which must have come as news to the tens of millions of Americans who thought their mother countries were Germany , Ireland, Italy, Mexico, China, or Text of the Queen's Nigeria-further compounding the insult by claiming that the American people as whole "reveres" Britain . address to Congress Bush then proceeded to trash the American colonists' fight for independence from British rule by stocking his Address by Britain's Queen Elizabeth II to a joint meeting of speech with obsequious references to the "special relation­ the U.S. Congress on May 16, 1991 . ship," particularly as evidenced in the Gulf war, and declar­ ing the U.S. and Britain to be "inseparable ." Topping off this Mr. Speaker, Mr. President, Distinguished Members of Con­ orgy of Anglo-American imperial ascendancy, the Queen gress, also inducted Norman Schwarzkopf, commander of the U.S. I know what a rare privilege it is to address a joint meeting forces in the Gulf, as a knight in the Order of the Bath, one of your two Houses. Thank you for inviting me. of the honors dispensed to those who further the interests of The concept, so simply described by Abraham Lincoln the British monarchy. as "governmentby the people, of the people, for the people," One can well imagine what George Washington or John is fundamental to our two nations. Your Congress and our Quincy Adams would say about the spectacle of the President Parliament are the twin pillitrs of our civilizations and the

64 National EIR May 31, 1991 chief among the many treasures that we have inherited from Community in particular. This is going to mean radical eco­ our predecessors. nomic , social and political evolution. NATO, too, is adapt­ We, like you, are staunch believers in the freedom of the ing to the new realities in Eastern Europe and the Soviet individual and the rule of a fair and just law. These principles are Union, and to changing attitudes in the West. It is Britain's shared with our European partners and with the wider Atlantic prime concern to ensure that the new Europe is open and community. They are the bedrock of the Western world. liberal and that it works in growing harmony with the United Some people believe that power grows from the barrel of States and the other members of the Atlantic community. All a gun. So it can, but history shows that it never grows well our history in this and earlier centuries underlines the basic nor for very long. Force, in the end, is sterile. We have gone point that the best progress is made when Europeans and a better way; our societies rest on mutual agreement, on Americans act in concert. We must not allow ourselves to be contract and on consensus. A significant part of your Social enticed into a form of continental insularity. Contract is written down in your Constitution. Ours rests on I believe this is particularly important now, at a time of custom and will. The spirit behind both, however, is precise­ major social, environmental and econdmic changes in your ly the same. It is the spirit of democracy. continent, and in Asia and Africa. We must make sure that These ideals are clear enough, but they must never be those changes do not become convulsions. For the primary taken for granted. They have to be protected and nurtured interest of our societies is not domination but stability; stabili­ through every change and fluctuation. I want to take this ty so that ordinary men and women everywhere can get on opportunity to express the gratitude of the British people to with their lives in confidence. the people of the United States of America for their steadfast Our two countries have a special advantage in seeking to loyalty to our common enterprise throughout this turbulent guide the process of change because of the rich ethnic and century . The future is, as ever, obscure. The only certainty cultural diversity of both our societies. Stability in our oWn is that it will present the world with new and daunting prob­ countries depends on tolerance and understanding between lems , but if we continue to stick to our fu ndamental ideals, I different communities. Perhaps we can, together, build on have every confidence that we can resolve them. our experience to spread the message' we have learned at Recent events in the Gulf have proved that it is possible home to those regions where it has yet to be absorbed. to do just that. Both our countries saw the invasion of Kuwait Whether we will be able to realize dur hopes will depend in just the same terms; an outrage to be reversed, both for the on the maintenance of an acceptable degree of international people of Kuwait and for the sake of the principle that naked order. In this we see the United Nations as the essential instru­ aggression should not prevail. Our views were identical and ment in the promotion of peace and cooperation. We look to so were our responses. That response was not without risk, its Charteras the guardianof civilized conductbetween natio ns. but we have both learnedfrom history that we must not allow In 1941 President Roosevelt spoke of "Freedom of speech aggression to succeed. and expression-everywhere in the world . . . freedom of ev­ I salute the outstanding leadership of your President, and ery person to worship God in their own ' way-everywhere in the courage and prowess of the armed forces of the United the world. . . . Freedoom from want and . . . Freedom from States. I know that the servicemen and women of Britain, fear." Just as our societies have prosperedth roughtheir reliance and of all the members of the Coalition, were proud to act in on contract, not force, so too will the world be a better place a just cause alongside their American comrades. for the spread of that mutual respect and good faith which are Unfortunately, experience shows that great enterprises so fundamental to our way of life. Freedom under the rule of seldom end with a tidy and satisfactory flourish. Together, law is an international, as well as a national concern. we are doing our best to reestablish peace and civil order in That thought might be in the minds of those of you at­ the region, and to help those members of ethnic and religious tending the Fiftieth Anniversary Meeting of the British­ minorities who continue to suffer through no fault of their American Parliamentary Group in July. Both our Houses are own. If we succeed, our military success will have achieved eager to greet you. They will, I know, tell you that our aim, its true objective. as Britons and Europeans, is to celebrate and nurture our For all that uncertainty, it would be a mistake to make long-standing friendship with the peoplct ofthe United States. the picture look too gloomy . The swift and dramatic changes We want to build on that foundation amd to do better. And, in Eastern Europe in the last decade have opened up great if the going gets rough, I hope you can still agree with your opportunities for the people of those countries. They are poet Emerson, who wrote in 1847 "I feel, in regard to this finding their own paths to freedom. But the paths would aged England, with a kind of instinct, that she sees a little have been blocked if the Atlantic Alliance had not stood better on a cloudy day, and that, in stoml.of battle and calami­ together-if your country and mine had not stood together. ty , she has a secret vigour and a pulse like a cannon." You Let us never forget that lesson. will find us worthy partners, and we are proud to have you Britain is at the heart of a growing movement towards as our friends. greater cohesion within Europe , and within the European May God bless America.

EIR May 31, 1991 National 65 the Southwest, including California.Golden Crescent heroin dominated the markets in Chicago and Puerto Rico, reflecting larger concentrations of South and Southwest Asian popula­ u. s. markets being tions. • Western and Eastern Europe have been also targeted flooded with heroin for massive expansion. One of the most alarming new devel­ opments is the greater integration of drug-trafficking net­ by Jeffrey Steinberg works from different parts of the world. The DEA study indicates that large quantities of Golden Triangle and Golden Crescent heroin are being "bartered" for Colombian cartel A 25-page Drug Enforcement Administration (DEA) report cocaine. As the result, Medellin and Cali Cartel traffickers is circulating among U.S. law enforcement and intelligence are now smuggling Asian heroin into the United States, while agencies warningthat the United States is being floodedwith Chinese and Nigerian drug organizations are now providing high-grade heroin. In an introduction to the report-which Colombian cocaine to a growing continental European is embargoed from release to the general public-the DEA market. administrator Robert C. Bonner wrotethat "heroin now poses The study draws a picture of anything but a "victory" in a greater threat to the U. S. than at any other time in the the war on drugs. recent past. This increased threat arises from the precipitous increase in opium production in the Golden Triangle and Kissinger's 20-year lie elsewhere, the emergence of new and aggressive heroin­ Even though the embargoed DEA study presents a far traffickingorganizations such as the Nigerians, as well as the more frank assessment of the continuing growth of the inter­ alarming rise in the purity of street-level heroin in the East national dope cartel than the! flagrant lies coming out of the Coast of the United States." White House, the report also contains one outrageous piece This blunt assessment by the recently appointed DEA of dis information-which E/R and the authors of the book chief underscores the fact that the White House has been Dope, Inc. exposedas early as 1978. lying about its "victories" in the war on drugs. In February, Atthat time, the authors ofthe Dope, Inc. study, commis­ just one month before the DEA study on "Worldwide Heroin sioned by Lyndon LaRouche; wrote that, as partof the Nixon Situation 1990" was completed, President Bush issued the administration 1972 detente with the People's Republic of annual National Drug Control Strategy report which pro­ China, then-Secretaryof State and National Security Adviser claimed that the federal anti-drug effort had surpassedall its Henry A. Kissinger had suppressed DEA and CIA field re­ objectives and that there had been a marked decline in drug ports which contained the original maps of the Golden Trian­ use in America. At the time EIR pointed to massive increases gle opium-producing area. Those maps proved that Commu­ in domestic marijuana production (generating $50 billion in nist China was a major source of Southeast Asian opium and black market revenues in 1990) as just one example of the heroin-a fact that would have made it hard to square the Bush administration's "cooking" of its war on drugs statis­ nominally anti-drug Nixon White House's diplomatic em­ tics. Now, the heroin survey reveals the following staggering brace of Beijing. Ever since 1972, officialU.S. government facts: reports have lied about the P.R.C. 's dominant role in the • The urban centers of the East Coast are being flooded world heroin trade. with Golden Triangle heroin. Whereas in 1985, Golden Tri­ Clearly, that coverup has continued. According to the angle (Southeast Asian) heroin accounted for approximately DEA report: "The primary opium production areas of South­ 14% of the heroin that reached U.S. streets, by 1989, that east Asia are located in the Golden Triangle region formed figure had jumped to 56%, where it remained in 1990. New by the conjunction of BUrma, Laos and Thailand ....In York, Baltimore, Washington, D.C., Detroit and Atlanta are addition, there are countries where opium poppy cultivation dominated by the Southeast Asian product, which is readily is just emerging, such as China, and other locations where available and sells for half the average price of the Southwest growing conditions are ideal, and therefore of potential Asian (Golden Crescent) and Mexican/Guatemalanher oin. concern." • According to the DEA study, the Southeast Asian her­ President Bush did not say a word about China's heroin oin is averaging over 40% purity at the street level. This trafficking when he recently asked Congress to renew compares to averages of 14% purity and 13% purity for the Beijing's Most Favored Nation status for another year. Nor Golden Crescent and Mexican/Guatemalan heroin respec­ did President Bush condemn "coalition partner" Syria's role tively. as the major transshipment and processing hub for Southwest • The DEA study indicates that heroin production in Asian heroin when he sent Secretary of State James Baker Mexico and Guatemala has also doubled in recent years. III off to Damascus for his fourth consultation in less than The Mexican/Guatemalan dope is primarily distributed in two months with President Hafez al-Assad.

66 National EIR May 31, 1991 suit, who include King, Anderson, and former Omahapolice chief Robert Wadman. Although young Bonacci is a pauper and in jail, J. Mullen refuses to pay for his legal expenses out of a stile fund set up for just such cases. DeCamp has already spent Nebraska courts still over $40,000 out of pocket, for investligation and � tens of thousands of pages of grand ju-ty tcsdtnoay. oa_' shield pedophile ring other hand, the man who allegedly raq the pedophile �, convicted embezzler Larry King, sent fourl awyers to � whose tab by AlanR. Ogden was picked up by the state, to argue that Kina should not have to testify in Bonacci's case. Everyoneindict­ ed by the grand jury, except for Paul ,Bonacci, was giWn " "My guy is getting the shaft," said attorney John DeCamp copies of the grand jury testimony on the house," .eqb during a hearing in DistrictCourt in Omaha, Nebraska May alleged pedophile Alan Baer, a multimillionaire. 14. DeCamp represents Paul Bonacci, the young pedophilia The grand jury which indicted Boriacci wildly viollled victim who was indicted on three counts of perjuryfor testi­ judicial secrecy rules for grand juries. Not only did dIey mony he gave to a grand jury in which he detailed his having publish their report which slandered Bonacci, but M�a.l been held in sexual slavery for years by a powerful politically Flanagan, the grand jury foreman, made statements .. connected Nebraska based pedophile ring involving former the proceedings to the World Herald, which were usel� Franklin Credit Union chairman Larry King, former Omaha the newspaper to vilify Bonacci, guaranteeing that he eouId World Herald publisher Harold Anderson, and others. not have a fair trial. Judge Mullen has refused to take fI/IlJ. Judge J. Patrick Mullen has consistently refused, over action to discipline the grandjury for theseacts . a six-month period, every motion by DeCamp to depose potentialwitn esses. Thejudge frequentlyturns to prosecutor Owens,trial is highly irregular . Gerald Moran to comment, "I don't think we can prevent The jury trial of Miss Owens, chargedwith eight� him from getting this," but then rules, "I'll take it under of perjury, is now in progress. She has beenthreatened " advisement." By this method, Mullen has blocked any possi­ 356 years in prison if she does not recant her testimaey bility of defense for Bonacci. against the Nebraska pedophiles. Moran is orchestrating, in two courtrooms, another phase Her attorney, Henry Rosenthal, dropped a "bombsbcU'" of the continuing conspiracy to cover up the facts about the at the opening of the trial May 20, announcing thatheW Nebraska pedophile ring initially exposed by Bonacci, Alisha received a threatening phone cali on May 18 fromstar proIIIt­ Owens, and other pedophilia victims to both the Nebraska cution witness Troy Boner. Rosenthal asked JudieRayt1lllOlld Senate's Franklin Committee, and the Douglas County Case to enter his tape of the call into th� courtrecord . Mana Grand Jury. Moran is also prosecuting Owens, who-like protested that this was irrelevantto the Owens trial, and.... J Bonacci-has steadfastly refused to recant her testimony. Case agreedwith Moran. Moran, further,tried to impe .... Moran's strategy seems to beto discredit Owens, and to deny jury as court reconvened after lunch, walking in with ftw Bonacci his day in court. In an unusual move, the state has police bodyguards, and raving that "supporters of the defc8.. triedto have Bonacci declared incompetent to stand trial. dant" had harassed and physically intimidated him durin,dIIe Internation8Ily recognized specialist in the satanic abuse break. He claimed one man asked him if he was sleepia, of children Dr. Judianne'Densen-Gerber recently called Bo­ with the grand jury foreman (Flanagan), and another INI8 nacci an extraordinarily valuable witness regarding ritual "jostled" him in the hallway. The prosecutor raved that he murders and the fate of missing children, because he has a refuses to be intimidated by "Rosenthal's people" aDd'­ "computer-chip memory." He recounted to her events with he might have them jailed. which she was independently familiar, she said, in exact The judge then admonished Rosenthal. Rosenthal � detail. For two years, the FBI, the World Herald and others tested that the judge was not concernedabout his being �­ have worked overtime to impede investigations into the pedo: ened, yet admonished him for alleged incidents invom.c phile ring, which has allegedly taken Nebraska children to people he did not even know. Moran, continuing histirak. the nation's capital for use in sex parties. replied that he knew who the people were, "they work for Moran has told the judge that DeCamp should not have Rev. James Bevel." Bevel, a civil rights leader active ill access to the evidence he seeks, because he has also filed a opposing the pedophiles, was in the QOUI1room to � federal civil suit charging 16 defendants with conspiracy to the trial, along with Nation of Islam leader Dr. Alim Abdul violate Bonacci's civil rights. Legal observers point out that Muhammad, and Heisman Trophy winner Johnny RodSCI'l. as a prosecutor, Moran should not mind if the civil suit is Eyewitnesses said it was Moran himseJf who provocatively successful, unless he is trying to protect those named in that bumped into an associate of Dr. Muhammadin the hallway.

EIR May 31, 1991 National 67 Congressional Closeup by William Jones

House committee The report also notes a decline in short-range missiles. kills space station productivity because of strikes, and a The Persian Gulf war and the The House Appropriations Subcom­ continued decline in oil output, fol­ present economic chaos in the Soviet mittee on HUD and Independent lowing a 6% decrease last year. Union have created the illusion that Agencies voted 6-3 on May 16 to kill there is no longer a danger of total Space Station Freedom. The subcom­ nuclear attack from any "superpow­ mittee cut all but $100 million of the er." A ground-based effort would be projected $2 billion from the space Fight brewing over ideal for the type of U . S. military op­ station budget, which will be used to MFN status for China erations as seen in the war against close down the project. On May 16, Senate Majority Leader Iraq. Supporters of the space station George Mitchell (D-Me.) introduced admit that the subcommittee vote will legislation which would force Presi­ be very difficult to overcome when it dent Bush to declare that China has comes to the floorof the House. discontinued its violations of civil House Dems give okay Rep. Robert Walker (R-Pa.), a rights if the U. S. were to continue to strong advocate of the space station to Iran-Contra probe grant Most Favored Nation status. The House Democratic leadership has on the committee, called the vote "a The move by Mitchell was in reac­ serious blow." The subcommittee has apprmted a preliminary staff investi­ tion to a statement by Bush on May 15 gation into whether the 1980 Reagan­ redirected much of the "savings" to that he would seek a one-year exten­ veterans' medical care and communi­ Bush campaign conspired to delay the sion of MFN status for China. Other hostage release by the Iranians until ty development programs. resolutions are expected to be consid­ Subcommittee chairman Rep. after the 1980 election in order to as­ ered when the issue comes to the Sen­ sure a Reagan-Bush victory. Bob Traxler (D-Mich.) said the deci­ ate floor. sion to terminate the space station "re­ House SpeakerThomas Foley (D­ flects the fact that our federal govern­ Wash.) met with Majority Leader ment's budgeting has hit a dead end." Richard Gephardt (D-Mo.) and the chaim1en of several committees dur­ C ongress makes deep ing the week of May 13, to discuss cuts in SDI program the issue and authorize a review of The House began debate on May 21 on available evidence. A group of House CIA says Soviet economy the Defense Authorization Bill, and members conducted interviews with continuing to decline supporters of the bill were forced to Richard Allen, Reagan's national se­ The Central Intelligence Agency and withdraw an amendment which would curity adviser, on May 16. Allen de­ the Defense Intelligence Agency said have restored the bulk of the $5.2 bil­ nied the allegations. They also met in their annual report to Congress on lion in funding for the Strategic De­ with former Iranian President Abol the state of the Soviet economy, that fense Initiative sought by the adminis­ Hassan Bani-Sadr, when he was in the the Soviet Union faces a decline in tration. At the same time, opponents United States on a tour to introduce output of 10% and an inflation rate of the sm were defeated in their at­ his book on the Irangate affair, My exceeding 100%. tempts to gut the sm program by turn­ Turn To Speak, which was recently In an accompanying presentation ing it into a $1.1 billion research published in English. to the Technology and National Secu­ effort. These moves to revive an investi­ rity Subcommittee of the Joint Eco­ The House Armed Services Com­ gation into the Iran-Contra scandal nomic Committee, DIA analyst C. mittee had already Whittled funding have Republicans concerned. House Patrick Duecy said that the Soviets had down to $3.5 billion and redirected Minority Leader Bob Michel (R-Ill.) made little headway in converting mil­ funding away from the more techno­ has complained that they were not itary industries to civilian production. logically advanced space-based de­ briefed about the General Accounting Duecy noted that although the Penta­ fense system, which President Ronald Office investigation into the allega­ gon expects the Soviet Union to con­ Reagan had put forword in his origi­ tions of a secret Reagan campaign tinue modernizingits forces and weap­ nal proposal for a defense against nu­ deal. Michel sent a letter to GAO ons systems, they would have to make clear weapons, to a ground-based sys­ Comptroller Charles Bowsher de­ further cuts in military programs. tem capable of protecting against manding to know who requested the

68 National EIR May 31, 1991 investigation, when the investigation Civil Rights Act of 1990 by only one said a few weeks ago were impeding was completed, and what members of vote. The House fell 17 votes short of his ability to extend new food aid to Congress had been briefed on the final the two-thirds needed to override. Moscow. Dole said that Bush had ex­ report. The Democrats, sensitive to the pressed enthusiasm for his resolution administration's fomenting of racial at a lunch with Republican senators tensions by their attacks on quotas, are before the vote. working overtime to find a compro­ Move to pass banking mise. The new bill is deemed neces­ deregulation bill sary in order to reverse recent Supreme The Bush administration's attempt to Court decisions which make it more DoJ targets Gulf war deregulate the banking sector over­ difficult for people to bring and win foe for alleged fraud came its first hurdle on May 21 when discrimination lawsuits. The FBI has begun an investigation the Financial Institutions Subcommit­ Part of the compromise is a into the alleged failure of Sen. Mark tee of the House Banking Committee $150,000 cap on punitive damages O. Hatfield(R -Or e.) to disclose the re­ that women and religious minorities approved an administration-backed ceipt of nearly $9,300in gifts fromthe measure. could receive in such lawsuits. Racial former president of the University of The bill includes provisions that minorities now can receive unlimited South Carolina. The accusation is that would allow banks to enter the securi­ damages under a post-Civil War law, Hatfield received the gifts while the ties business for the first timein nearly while women and religious minorities university was seeking committee ap­ 60 years. The subcommittee also left areprotected under Title 7 of the 1964 proval for $16.3 million in federal intact the measures which would per­ Civil Rights Act, which does not pro­ funds from the Appropriations Com­ mit banks to expand into the insurance vide for damages. mittee of which Hatfield was the business. The Bush administration hopes to chairman. Other provisions of the bill would capitalize off racial tensions in the Hatfield was the only Republican allow commercial companies such as 1992 election campaign. The White Senate opponent of the Persian Gulf Sears and General Motors to own House had sabotaged discussions be­ deployment. He waS the only senator banks. These provisions were not con­ tween members of Congress and the who was both against the deployment tested by the subcommittee. Business Roundtable who were trying ofU. S. troops to the Gulf and the poli­ The measure will now go to the full to work out a compromise which cy of "strangulation" of Iraq through committee where the deregulation would be satisfactory to employers. economic sanctions. The Justice De­ measures are expected to meet greater partment inquiry began in March, two opposition. As was pointed out by months after the critical vote on the Rep. James Moran (D-Va.), who at­ Persian Gulf resolUtion. Hatfield has tempted to place limitations on the Senate okays loan the reputation of being the "conscience merging of banking and securities guarantees for Soviets of the Senate." functions, the banking and securities The U.S. Senate voted 70-28 in favor sectors were separated in 1933 be­ of a "sense of the Senate" resolution cause of the abuses which led to the sponsored by Minority Leader Bob crash of 1929. Dole (R-Kan.) in mid-May, urging C heney stalls .on President Bush to approve an addi­ Persia� Gulf withdrawal tional $1.5 billion in loan guarantees In testimony before a House subcom­ for grain shipments to the Soviet mittee on May 21, Secretary of De­ New civil rights bill Union, as Soviet President Mikhail fense Richard Cheney was besieged by causes consternation Gorbachov has requested. The resolu­ complaints from cdmmittee members Congress is now preparing another tion links U.S. aid to progress on po­ that U.S. Army Reserve troops had not civil rights bill after George Bush ve­ litical reform and Soviet interest pay­ yet been brought home from the Gulf. toed a civil rights bill last year, because ments on previous loans. Cheney said that there was a time­ he claimed it placed minority �'quotas" The resolution is aimed at lifting table for bringing these troops home, on hiring by employers. The Senate congressional restrictions on credits to but he would give no dates for their failed' to override the Bush veto of the the Soviets, which President Bush return.

EIR May 31, 1991 National 69 National News

ago. Judge Herron's ruling shuts off any for a probable cause hearing within 24 further attempts in Pennsylvania to obtain hours , and that rule is generally followed the names of contributors to LaRouche-as­ nationwide. The County of Riverside, Cali­ Lamm says he will sociated organizations. fornia whichroutinely holds people for days At the hearing, the district attorney dis­ without a hearing, argued that it is the con­ 'autopsy' medical care closed that a Philadelphia bank, Provident venience of the state, not the rights of the Fonner Colorado Gov. Richard Lamm, in National, had turned records directly over citizen, which should shape the rule. Richmond, Virginia, to deliver a lecture at to Minnesota investigator Richard Munson the Richmond Academy of Medicine's on Jan. 30, 1991, bypassing his office, de­ monthly meeting, said that he's been trying spite the fact that the issue of producing to conduct an "autopsy" of the U . S. medical records was still being litigated. Munson's care system, which he says costs too much. actions, in which records were obtained in Larnm, while governor of Colorado, once violation of Pennsylvania law, were deemed Hostages may be said that old people should die and get out an impropersearch by the district attorney. Bush's Watergate of the way because they use up too many Herron ordered the district attorney to resources. demand that the records be returned or he Conservative columnist Kevin Phillips asks Lamm blames the nation's health care would consider granting a hearing on mis­ if the delay in the release of the American system costs on high malpractice premiums conduct and for sanctions. hostage$, allegedly engineered by the and the fact that doctors order or perfonn Reagan.Bush campaign until after the 1980 unnecessary tests to protect themselves electioIll', is "Bush's Watergate?" in a com­ from being sued; excess facilities, including mentary.in the May 12 Los Angeles Times. unused hospital beds and too many pieces Phillips hints that choosing Quayle as of equipment such as mammography units; his vice president was impeachment insur­ ance for Bush: "And the biggest problem excess numbers of operations and proce­ Supreme Court limits dures, not absolutely necessary; and public comes if Bush, a fonnerdirector of theCen­ expectations that medical professionals can Fourth Amendment tral Intelligence Agency, was influencedby Rich­ the thought that if some revelation about the do practically anything, the May 15 FourthAmendment protections against ille­ mond Times-Dispatch reported. Iran-Contra scandal, a Noriega drug-money gal search and seizure were further limited link or some other possibly impeachable se­ by the Supreme Court in a May 13 ruling cret dealing ever came to light, Congress in County of Riverside v. McLaughlin. The would slhrink from any action to install J. Court said police can hold persons arrested Danforth Quay Ie. " without a warrant forup to 48 hours before The , political victory of the Gulf war a probable cause hearing is held. could b�tainted if Hostagegate reveals that Setback for Minnesota A dissent by Justice Antonin Scalia, the ' 80s and '90s "turnout to be a seamless who was joined by Justices Thurgood Mar­ 'get LaRouche' effort web of GOP secret Middle East dealings." shall, Harry Blackmun, and John Paul Ste­ Phillips ends, "It may be a long shot, but Philadelphia Common Pleas Court Judge vens, pointed out that the ruling throws out backstage events in the Middle East, and John Herronon May 14 granted a motion to the common law basis for the Fourth what Bush knew about them, could dramati­ prevent the Office of Minnesota Attorney Amendment in order to accommodate bu­ cally rewrite the '92 political campaign." General Hubert "Skip" Humphrey from get­ reaucratic interests of the government. ting all bank records for the Constitutional Scalia, who has previously backed lim­ Defense Fund (CDF) from May 1989 to the iting the Fourth Amendment rights of "crim­ present. The decision comes in the ongoing inals," wrote, "Hereaftera law-abiding citi­ fight to prevent the "Get LaRouche" task zen wrongfully arrested may be compelled force from succeeding in its latest fishing to await the grace of a Dickensian bureau­ Sagebrush revolt aims expedition. CDF has helped coordinate the cratic machine, as it churnsits cycle for up to defense of supporters of Lyndon LaRouche. two days-never once given the opportunity at environmentalism Judge Herron narrowed the scope of two to show a judge that there is absolutely no A sagebrush rebellion is erupting in the search warrants requested by the Philadel­ reason to hold him, that a mistake has been westempart of the United States, which, the phia district attorney on behalf of Hum­ made. In my view, this is the image of a May 16 Washington Post warns, is a mass phrey's office, to only those records that system of justice that has lost its ancient movement against the environmentalists pertain to a CDF contributor Jane Young, sense of priority , a system that few Ameri­ and the greens in the U.S. government. one of two alleged "victims" named by a cans would recognize as our own." The Washington Post reports that Minnesota investigator. A civil case involv­ In 29 of 50 states, police had been obli­ groups such as People for the West "have ing Young in Minnesota was settled months gated to present a detainee to a magistrate struck a chord among rural westerners" by

70 National EIR May 31, 1991 i Brilffly

• ROBERT GATES, deputy na­ opposing ecological fanaticism. This "was Bush's national security adviser and now tional security adviser, was named by powerfully illustrated earlier this year dur­ "happens to be the current ambassador to President Bush May 14 to replace ing public hearings on the Greater Yel­ South Korea," Carter replied, "Yes." William Webster as head of the CIA. lowstone 'vision' document, a federal effort Carter speculatedthat Gregg, while still According to press accounts, Bush to preservethe region's ecological integrity. a member of his administration, joined with made the decision afterpolling mem­ 'I went to a meeting in Bozeman [Montana] a number of former CIA officials who were bers of Congress and concluding that and there were 700 people there,' recalled fired by Carter's CIA director Stansfield the confirmation hearings would not Yellowstone National Park: Superintendent Tumer. "We tried to clean up the CIA," be turned into a partisan forum for Robert Barbee. 'You can't imagine the viru­ Carter said. "It had been shot through with reviving the Iran-Contra scandal. lence of the outcry. . . . I was Saddam Hus­ people that were later involved in the Iran­ sein . . . a communist, everything else you Contra affair. . . . We knew that some of • INVESTIGATORS Robert Gett­ could think of. One lady got up there, jaw the former CIA officialswere loyal to Bush lin and Len Colodny charge that the quivering, used her time to say the Pledge and not particularly loyal to me and Stan Watergate scandal was a "silent coup" of Allegiance, then looked at me and called Turner." against the presidepcy. They published me a Nazi.' " their book, Silent Coup, simultane­ ''This is a political phenomenon going ously in the United States, France, on in the West and I've never seen anything Britain, and Japan�and releasedit May like it," former Oregon state legislator Wil­ 12. liam Grannel told the paper. The Washing­ Maglev-mobile ton Post claims the "sagebrush" rebellion • POVERTY and unemployment "is the development of an overarching phi­ tours Pennsylvania were believed by ,68% of 779 Mount losophy to counter what critics have dubbed A "Maglev-mobile" sponsored by the Schil­ Pleasant residents interviewed by the the 'anti-human' bias of groups such as the ler Institute crossed the state of Pennsylva­ Washington Postj to be the cause of Sierra Club. Industry advocates who once nia May 13-16, to mobilize support behind riots in that neiglilborhood of Wash­ couched their arguments solely in economic an economic recoveryprogram for America ington, D.C. in �ay . termsnow speak of 'man's place in the eco­ based on infrastructure investments. The system' and the obligation to use natural tour followed the route of the Philadelphia • BISHOP V ACHE, of the Epis­ resources forthe betterment of mankind." to Pittsburgh magnetically levitated train copal Church of �ichmond who has line, as proposed four years ago by the Penn­ called for a halt in U.S. aid to Israel sylvania High Speed Rail Commission of until it stops its a�use of Palestinians, the state legislature. told the May 13 Richmond Times Dis­ Tour organizers elaborated the "Produc­ patch that modefl!l Israelis like a per­ Carter says Bush adviser tive Triangle" proposal of economist Lyn­ son who, having been abused as a don LaRouche for rail-centered investments child, becomes aichild abuser in ma­ behind October Surprise in Europe, in order to dramatize the failure turity. Former President JimmyCarter said he be­ of America to build basic economic infra­ lieved that it was Donald Gregg, an adviser structure. • MASSACHQSETTS Gov. Wil­ to George Bush, who was key in efforts by Elected officials, trade unionists, and liam Weld has in�oduced of convict the Reagan-Bush campaign to delay the re­ businesses, were briefed, and the tour gar­ labor for construction and repair lease of American hostages from Iran until nered media coverage, including in the AL­ work at the capiliol building in Bos­ afterthe 1980 elections, the so-called Octo­ toona Mi"or. Officials were urged to call ton, the birthpla¢e of the American ber Surprise. for I) high tariffs to protect the internal U.S. Revolution. Inmates get $2 a day. In an interview in the May 16 Village economy, and allow. our industries and The building trapes union staged a Voice, Carter was asked who he suspects farms to get back on their feet; 2) low-inter­ protest rally MIllY 15. "Slaves had was responsible for leaking information est government credits, to rebuild infra­ jobs," Massacjhusetts Building fromhis administration to the Reagan-Bush structure, including high-speed rail, and to Trades Council President Leo Purcell campaign, as the negotiations were ongoing finance a high-technology export program said in an interView. "Is that what with the Iranians to obtain release of the to developing countries; and 3) a reform of we're talking about now?" hostages. the international monetary system, includ­ "I'm not prepared to name names, but ing comprehensive debt reorganization and • A $100 FINE was meted out to there were some-there was one particular, forgiveness with the U.S. and globally. It John Schuchardt, the man who em­ key member of my National Security Coun­ also called for pressure on the U.N. Human barrassed President Bush by praying cil who stayed on and worked full-time for Rights Commission to investigate the hu­ aloud for peace in his Kennebunkport Vice President Bush." Asked if he meant man rights violations by U.S. government church on Feb. 17. Donald Gregg, who was Vice President agencies in the case of LaRouche.

EIR May 31, 1991 National 71 Editorial

Is Bush planning a new war?

The war against Iraq saved George Bush's posterior, of jingoism. Not coincidentally, the manifest destiny to put it politely. From rightly being low in the popular which Teddy Roosevelt intended the United States to estimation , he achieved a burst of popularity through live out, was in conjunction with British imperialism his calculated brutality against a defenseless popula­ rather than-as in the case of Washington and Lin­ tion . Bush rightly calculated on the degradation and coln-in opposition to it. stupidity of the American popUlation , which is willing So it is not surprising that George Bush is looking to buy into the myth that the Desert Storm victoryshows for a new war to keep his political momentum going, the United States to be still a strong, thriving nation. especially as his domestic problems on the economic Now there are signs that he is looking for a Desert front are assuming crisis proportions . This being the Storm II. case, it would be wrong to dismiss signals that he may He is known to model himself upon the disgusting be following so closely in the footsteps of T.R., that he President, Teddy Roosevelt, who believed that is actually planning a retake on the Spanish-American America and the British could, and should, bully the War. rest of the world into submission . On May 20, he made a statement, celebrating the A new biography by Godfrey Hodgson of a Teddy anniversary of the liberation of Cuba, in which he as­ Roosevelt protege, Henry Stimson (who was defense serted that the United States was committed to seeing secretary in the Taft and Franklin Roosevelt adminis­ a free Cuba. On the same day , the unofficial leakers , trations, and secretary of state for Herbert Hoover) , has columnists Rowland Evans and Robert Novak, mooted a revealing quotation by Teddy Roosevelt on the value a new Cuban missile crisis. of little wars . Stimson himself-a member also of the According to them, on April 25 , U. S. spy satellites secret society, Skull and Bones , to which Bush be­ discovered one or more SS-20 missiles located in Cuba. longs-was a mentor of George Bush. Essentially, They also report intelligence findingsthat suggest Cuba through his years in office , Stimson prepared the may be developing a nuclearreactor capable of produc­ groundwork for Bush's fascist new world order. ing weapons-grade fuel. It is worth quoting Hodgson because Roosevelt's This reminds one of the buildup to the Iraq war, in nasty assumptions then are Bush's game-plan today. which unproven claims were made by the British that Hodgson writes: "In yet another respect, young Henry the Iraqis were building new super weapons and so on . Stimson followed his hero Roosevelt. Like others of Another, earlier signal, came from former U.S. their generation they were fascinated and not at all Ambassador to the United Nations Jeane Kirpatrick. repelled by war. 'If it wasn't wrong ,' Roosevelt wrote She wrote a syndicated article in which she described in a private letter in 1896, 'I should say that personally Fidel Castro as so desperate because of his domestic I would rather welcome a foreign war,' and again next problems that he might attack a nuclear power plant in year, 'in strict confidence ...I should welcome almost Florida as a diversion. The scenario for a new Chemo­

any war, for I think the country needs one.' " byl, which she suggests, is certainly. bizarre , but that is The Spanish-American War, now widely admitted not the point. to have been deliberately engineered by the Roosevelt John Stockwell, formerly high up in the CIA, crowd, including the explosion on the Maine which agrees with our assessment. He has written a book, The was the pretext for the U.S. retaliation, was just such Praetorian Guard-The U.S. Role in the New World a convenient war. It was in fact pivotal in transforming Order, in which he warns that Bush is looking for a the American cultural paradigm from the kind of genu­ series of small wars to fight. Stockwell, like us, has ine patriotism evoked by great leaders like George a good record in anticipating Bush's moves. He too Washington and Abraham Lincoln, into a nasty kind predicted the invasion of Panama.

EIR May 31, 1991 National 72 Derivative EIR Audio Report Assassination: ·Your weekly antidote Who Killed fo r New Wodd .Order 'news' Indira Gandhi? Exclusive news reports and interviews

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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-on 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 investigators tell the truth about what the Bush administration and the media have tried to sell as a once-in-a-life time 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.

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