EIR Special Reports

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

r------�------I I EXECUTIVE INTELLIGENCE REVIEW I I I would like to receive these EIR Special Reports: I I Order Number(s) Name I I 0 Bill me for $ 0 Enclosed is $ -l I Title Please charge to my 0 VISA Master Charge l I 0 Comp,any Diners Club Carte Blanche I I 0 0 Card No. Address I I Signature Exp. Date__ City State Zip I I Te lephone ( I I �� . I Make checks payable to: I I EIR/Campaigner Publications, Dept. MC-1, 304 West 58th Street, 5th floor, New York, N.Y. 10019 (212) 247-8820. I I For further information, contact William Engdahl, EIR Special Services. I

L ______� Founder and Contributing Editor: LyndonH. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: NoraHamerman Managing Editor: Susan Johnson Features Editor: Susan Welsh Assistant Managing Editor: MaryMcCourt ArtDirector: Martha Zoller From the Managing Editor Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, WebsterTarpley, Christopher White Special Services: William Engdahl Advertising Director: Geoffrey Cohen Director of Press Services: ChristinaHuth Intelligence is ammunition: this week we provide you with a full , INTELLIGENCE DIRECfORS: transport on the question of Western defense and Soviet war-fighting Africa: Douglas DeGroot Asia: Linda deHoyos capabilities. Our Special Report presents the efforts of Secretary of Counterintelligence: Jeffrey Steinberg Defense Caspar Weinberger, now the only Reagan administration Economics: David Goldman official who is battling for the beam-weapons Strategic Defense European Economics: Laurent Murawiec Energy: William Engdahl Initiative (SOl). Editor-in-Chief Criton Zoakos writes, "On one score Europe: Vivian FreyreZoakos there should be no doubt left: The single most decisive issue in the Thero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus current world strategic crisis is whether or not the United States will Middle East: ThierryLalevee be able to rally itself and prevent the Soviet Union from 'stealing the Science and Technology: Marsha Freeman march' and establishing an unchallenged monopoly in strategic anti­ Soviet Union and Eastern Europe: Rachel Douglas missile defensive systems, to add to its already overwhelming su­ United States: Graham Lawry periority in strategic offensive weapons." We present the evidence that the vaunted U.S. lead in x -ray laser INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura technology has vanished, while the Soviets have achieved the "op­ Bogota: Carlos Cota Meza erational capability to destroy satellites" identified in a recent White Bonn: George Gregory, Rainer Apel House report. Let nobody seek consolation in the news that the Caracas: Carlos Mendez Chicago: Paul Greenberg Pentagon is requesting an additional $3.6 billion for FY1985 to bring Copenbagen:LeniThomsen the U.S. military space programs to the $12.9 billion level, of which Houston: Harley Schlanger a mere $900 million is designated for the Strategic Defense Initiative. lima: Julio Echeverria Los Angeles: Theodore Andromidas Compare that to, say, the Environmental Protection Agency budg­ Mexico City: JosefinaMenendez et-and to the $200 billion crash program for an across-the-board Milan: Marco F anini Monterrey: M. Luisa de Castro buildup based on a drive to develop beam weapons proposed last New Delhi: Susan Maitra month at our Paris conference by EIR founder Lyndon H. LaRouche, Paris: Katherine Kanter Jr. In our National coverage, we document how far President Reagan Rome: Leonardo Servadio, Stefania Sacchi Stockholm: Clifford Gaddy has moved from his commitment to the SOL And in our International United Nations: DouglasDeGroot section, we report on the West German government's moves to Washington, D.C.: Richard Cohen, oppose the SOl, at the behest of Kissinger Associates' Lord Carring- Laura Chasen, Susan Kokinda Wiesbaden: Philip Golub, MaryLalevee, , ton, the most visible "mole" in NATO. EIR warned last year that Barbara Spahn certain people in Washington were foolishly counting on the Chris­ tian Union leaders in Bonn not only to see through the deployment Executive Intelligence Review (ISSN 027�314) of the Euromissiles but to back the SOl, heedless of the nest of is published weekly (50 issues) except/or the second week 0/ July andfirst week 0/ Januaryby New Solidarity appeasers and neutralists within the "conservative" West German InternationalPress Service304 W. 58th Street, New York, N.Y. 10019 (212) 247-8820. parties.

'" EurtJfJe: Executive Intelligence Review The most noteworthycounter-blow to all this is the 225,000votes Nachrichtenagentur GmbH, Postfach 2308. Dotzheimerstrasse 164, 62 Wiesbaden, cast and officially counted in Pennsylvania on April 10 for a slate of Tel: (06121) 44-90-31. Executive Directors: Anno Hellenbroich, Michael Liebig candidates headed by LaRouche, running on a platform of all-out

'" M.xieo: EIR. Francisco Dfas Cov8ITUbias 54 A-3 mobilization of U . S. military and economic capabilities. You'll find Colonia San Rafael. Mexico DF. Tel: 592-0424. that story in our National section. JoptIII.ub.cripliollsales: O.T.O. Research Corporation. Takeuchi Bldg., 1-34-12 Takatanobaba.Shinjulru-Ku. Tokyo 160. Tel: (03) 208-7821.

Copyright I!:l 1984 New Solidarity InternationalPress Service. All rights reserved.ReprOduction in whole or in panwithout permission strictly prohibited. Second-class postage paid at New York. New Yorkand at additional mailing offices.3 months­ $125.6 months-$225. I year-$396. Singleissue-$IO Academic library rate: $245 peryear � •

TIillContents

Interview Economics

10 Dr. BiU Gazaway, plant 4 Henry Kissinger and pathologist the new Dope, Inc. What the Environmental Protection The significance of American Agency's ban on pesticide EDB as a Express's latest expansion. soil fumigantfor row plants like peanuts and soy beans will mean to 6 Trilaterals: Europe and farmers and consumers. Japan should supply Soviets with high technology Departments Excerpts from the "discussion document" at the Trilateral Commission's April 1-3 conference 41 Report from Bonn in Washington. Sonic booms over West Berlin. 9 Oil trade shifts to 42 Mother Russia African west coast Soviet authorities push fascist In the wake of the Lebanon disaster. movement. 12 Gold 43 Report from New Delhi The case for gold. London-based separatists spread terror. 13 Foreign Exchange Institutions look for foreign 44 Attic Chronicle equities. How near is the abyss? 14 Currency Rates 45 Dateline Mexico Moscow joins attacks on labor. 15 Labor in Focus Lorraine on fire. 58 Elephants and Donkeys An indefensible defense plank? 16 Business Briefs

59 Kissinger Watch Who's nuts, Mr. Braden?

64 Editorial Genocidalists try to gag EIR .

Correction: The byline on last week's "Report from Bonn" column should have been Michael Weissbach. Volume 11 Number 16 April 24, 1984

Special Report International National

30 Kohl bows to Carrington, 48 Reagan administration now attacks U.S. beam policy rapidly falling apart

Documentation: A chronology of A commentary by Lyndon H. key statements by West German LaRouche, Jr. spokesmen. 51 Reagan bows to Dr. K. 's 33 The Contadora plan demand to stifle beam is the only way out defense program

Artist'sconception of ananti-satellite missile (ASAT) For Central America. Documentation: Excerpts from the being launched on its path toward an enemy satellite President's statement terming it a by an F-16. Drawing by Cbristopber SloaniNSIPS 34 Nuclear program is purely "research" commitment. latest IMF target 18 Will U.S. challenge In Argentina. 53 Pennsylvania primary: a victory for LaRouche and Soviet militarization the LaRouche Democrats of space? 35 Chernenko calls for 'normality' a la Kissinger The results of the April 10 election 20 Pentagon documents included near-winsfor National Democratic Policy Committee­ Soviet war plans 36 'Western security demands real defense' backed congressional candidates. 21 Weinberger fights for the Marie-Madeleine Fourcade . . 56 Scientific has-beenstry to Strategic Defense Initiative launches the commemoration of D-Day. salvage their 'Soviet connection' 23 Will the Soviet Union 37 Anti-beamfight is Behind the Pugwash physicists' deploy an x-ray laser by spread to Asia attacks on ABM defense. 1985? A report on a French conference. 60 Congressional Closeup 25 A White House report shows the Soviet advances 38 Macri: 'Kissinger 62 National News in ASAT capabilities crazy or a traitor'

27 Zumwalt, Van Cleave score 39 How the Nazis took the U.S.S.R.'s arms treaty Europe's northern violations ftank by surprise in 1940

46 International Intelligence �TIillEconomics

Henry Kissinger and the new Dope, Inc.

by David Goldman

Shearson LehmaniAmerican Express, the projected corpo­ two of the shadiest financiersin the world. LebaneseEdmund rate name for Wall Street's largest merger, is a phoenix which Safra, a product of the Propaganda-2 apparatus at the Banca has arisen from the ashes of a global money-laundering op­ Commerciale Italiana, and United Brands director CarlLind­ eration which, a decade ago, was associated with such names ner, the heir to the old United Fruitalliance of New England as Investors Overseas Services (lOS), Tibor Rosenbaum's bluebloodsand New Orleans hoodlums, each control roughly Banque du Credit Internationale, Roberto Calvi's Banco Am­ 4% of the stock of the parent company. brosiano, Resorts International, David Graiver's American Bank and Trust, and other entities with ties to the deceased From the West Indies to William Street. financier oforganized crime, Meyer Lansky. The march from the shady offshore havens to the premier . lOS's Robert Vesco is now a fugitive under virtual Cubah positionon Wall Street dependedon one great strategicchange political protection; Rosenbaum died in an Israeli prison after in the position of the United States: America's fall from net the 1975 failure of his bank; Resorts has taken a low profile; creditor to net debtor status in the world financialsystem , as Graiver is reportedly in hiding after his staged "death" in a presidential adviser MartinFeldstein has noted before several Mexico plane crash; and Calvi, the financierof Italy's infa­ congressional committees. Once the United States became mous Propaganda 2 masonic lodge, died in 1982 at the end dependent upon foreign inflows to finance a trade deficit of of a rope under London's Blackfriars Bridge, the apparent $120 billion per year, a currentaccount deficitof $80 to $90 victim of freemasonic revenge. billion per year, and a budget deficit(including "off-budget" But all these capabilities-what Jeffrey Steinberg and items) close to $300 billion per year, the world of flight this author dubbed "Dope, Inc." in a 1978 bestseller-have capital-{)fgray and black money-merely needed the ap­ been rebornunder a single umbrella, under the control of the propriate opportunityto assert its leading position in Ameri­ institutions we identified six years ago as the leading "re­ can financialmarket s. spectable" institutions behind organized crime and narcotics. traffic. The underground economy Henry Kissinger was brought onto the Amex board in With unusual frankness, the InternationalMonetruy Fund March 1984. A fellow board member at Amex is Kissinger in an appendixto its 1983 World Economic Outlook asserted Republican Anne Armstrong, also the chairmanof the Pres­ that funds equal to about a quarterof world tradenow cross ident's Foreign Intelligence Advisory Board, who brought national borders untracked by governments. As EIR has ex­ Kissinger onto that body one week before Kissinger joined posed in detail, this includes flight capital, narcotics reve­ the Amex board. nues, illegal arms, smuggled gold, contraband high-value Most of the old "Our Crowd" investment bankers-Loeb agricultural products like coffee, and human beings, and it Rhoades, Kuhn Loeb, Lehman Brothers-are now grouped represents a $300 to $400billion peryear flow of funds, the aroundthe new American Express entity, itself controlled by margin of available cash in the world economy. This is the

4 Economics EIR April 24, 1984 pool of international funds the United S�tes is now drawing on to finance its external and internal payments deficits,and that defines an American weakness. The $300 to $400 billion a year flow of untraceable mon­ ey corresponds to hidden trust assets which, as EIR first reported in 1981, control roughly $200 billion of American equity' unregistered with U.S.authorities, as well as substan­ tial portions of the "visible economy." It also represents a Soviet strategic capability.The British, Swiss, Hong Kqng, Singapore, and otherinvestment and commercial banks who provide the "shells " through which such funds are invested untraceably are the Soviets' partners in what is euphemisti­ cally known as the "underground economy."

The extraordinary capacities of Amex .The new American Express empirebegins with the Trade DevelopmentBank of Geneva, Edmund Safra's vehicle. Saf­ ra sold out to Amex in January 1983 in return for 4% of the firm's equity as well as the presidency of the Amex interna­ David Graiver of American Bank and Trust tional banking subsidiary. Safra's banking career began as an adolescent in wartimeMarseille, according to his lifelong friend Franz Pick, in the gold-smuggling black market.Un­ der the sponsorship of old-line Venetian-Jewish Mediterra­ board. The attorney !lnd board member responsible for the nean financiers such as the Recanati family of Milan aDd merger with Shearson is Kenneth Bialkin, former national Salonika,Safra was apprenticed at the Banca Commerciale chairman of the Anti-Defamation League (ADL) as well as Italiana in 1948 at age 16,just as the Propaganda-21odge was co-chainpan of the Jerusalem Foundation, and a close friend fouqded at the bank's headquarters. and associate of Hamburg financier:Erich Warburg. Bialkin's In a May 1979 profile, Institutional Investor wrote of ADL colleage Ted Silbert still faces a civil suit by the Italian Safra, "Inevitably, Safra's incredible track record, unusual government alleging corrupt connections to P-2 financier business mix and passion for secrecy has spawned consider­ Michele Sindona.And Warburg is considered even by friends able speculation and innuendo about what he's really up to. in Hamburg to be embarrassingly close to Soviet financial A loan syndication officerat a major American bank remarks interests in the West. Bialkin is also closely associated in that 'whenever you mention Safra's banks in a meeting, various dirty financial deals,e. g., the Gulf Resources Co.in everyone sortof grins.It's assumed they have shady connec­ Texas, with identifiedNazi International financier networks, tions.' With his heavy involvement in the gold market and including Britain's Clore family and the Keyser Uhlmann his Middle Eastern origins, some outsiders surmised that he investment house. . was a heavy speculator whose banks stockpiled smuggled When Safra moved into New York in 1965, he chose as gold .... principal partner New York wheeler-dealer Theodore Kheel "Part of the stigma attached to [Safra's] Trade Develop­ in the takeover of Republic National Bank, which Safra still ment Bank stemmed from the bank's gold-dealing activities controls.Kheel became notorious in 1975 as the principal ...the ways that TDB allegedly got hold of the metal were sponsor of swindler David Graiver, a P-2 financier from ) regarded as somewhat suspect.Large amounts of it were said Argentina who disappeared after looting several hundred mil­ ' to have been spirited out of Africa, particularlyNigeria; one lion dollars from his own American Bank and Trust in New former Republic National Bank [another Safra institution] York. executive remarks that 'The first time I ever saw a gold vest Safra is one of the two principal stockholders in American was in TDB in Geneva' (the vest, wornaround the body, can Express, and the chief of its internationalbanking subsidiarY. be used to transport gold ingots surreptitiously)." He now has more at his disposal than smuggled gold bars: Safra's gold operation involved underground links to the the closest equivalent to anonymous currency,American Ex­ Soviets, it seems; the same Institutional Investor quotes a press travelers' checks, and a favored means of moving un­ TDB executive saying, "In the beginning of the 1960s, the traceable international money. barter business was huge and we did a huge business with a The other principal stockholder, Carl Lindner, is also lot of countries, from Russia down to Greece.It used to be principal stockholder of United Brands, the grandmother of my hobby." the Latin American narcotics traffic; Lindner is a business Safra's known longstanding ties to the Russians comple­ partner of alleged Detroit organized-crime figures at both ment those of the top Amex directors wbo brought him on United Brands and other ventures.

EIR April 24, 1984 Economics 5 Trilaterals: Europe andJapan should supply Soviets with high technology bySusan Johnson

Last week, EIR reported on two major demands of the Tri­ the work of their aides: Charles Morrison of the Japan Center lateral Commission's "DraftTask Force Report,Democracy for InternationalExchange and the East -West Center in Hon­ Must Work: A Trilateral Agenda for the Decade," circulated olulu; Masahiro Sakamoto of the Japan International Trade privately at the commission's meeting in Washington, D.C. Institute; Michael Stewart of the British Foreign Office; and on April 1-3 in Washington, D.C. Those demands: 1) that Carol Rae Hansen of Harvard, the State Department, CIA, the United States cut its budget deficit by slashing defense and NSA. The report's dull, fatuous sty Ie is the bureaucratese spending and entitlements programs for the elderly and ill; of those who wish never to be held responsible for the con­ and 2) that the Europeans and Americans spread out their sequences of the measures they advocate. colossal unemployment through work-sharing and early re­ tirementschemes, under the banner of the "leisure society"­ The Western economies: The authors hail the growing ratio as if the tasks of world development do not require the full of non-productive employment to productive employment, effortof every human being."Trilateral" refers to the United and assert the unlikelihood of a global economic collapse. States, WesternEurope, and Japan. EIR's LaRouche-Riemann econometric model has conclu­ Below we presentexcerpts from the report's prescriptions sively demonstrated that it is precisely a proliferation of for the economies of Europe,Japan, and the underdeveloped "service" overhead while the industrial base shrinks that nations. The authors say the report is aimed at influencing ensures a collapse. the 1984, 1985, and 1986 summit meetings of the seven leading industrializedWestern nations. An encouraging trend, widespread throughout the trilateral The Trilateral Commission continues to operate despite regions, is the shift to service industries. Part of the natural thefact that its members (among them the executive board's evolution of Western industrial societies, it offers scope of Henry Kissinger) and their higher-level sponsors (the centu­ absorbing large numbers of unemployed. In the U. S., for ries-old imperial families of continental Europe) sabotaged example, nearly all the increase of 13 million jobs between U.S.defense capabilities, destroyed the dollar-gold reserve 1973 and 1983 was in three main service areas: wholesale standard, contrived the oil crises of 1973-74 and 1979, and and retail trading; finance, insurance, and real estate; and dictated the Federal Reserve's post-October 1979 destruction professional, scientific and miscellaneous services. Com­ of the U.S.industrial base. pared to some European countries, especially Britain, a much Despite the Trilaterals' claim that high interest rates are higher proportion of the increase in the demand for services the result of the U.S.budget deficit,that deficit in truth was fed straight through into an increase in employment. . . . largely caused by the collapse in government revenue, in­ Although risingdemand for both public and private ser­ creasein governmenttransfer payments, and decreasing pro­ vices has led to an expansion of employment in the services ductivity incurred under the industrial depression which Fed­ sector, much of this extra employment has been provided by eral Reserve chairman Paul Volcker deliberately triggered. women not previously in the labour force, and has thus far The nominal authors of the report,British Social Demo­ failed to lead a corresponding fall in unemployment .... cratic leader David Owen, Carter National Security Adviser ,The overriding international economic issue is one of Zbigniew Brzezinski, and Club of Rome spokesman Saburo achieving stable and sustained economic growth. . . . There Okita of Japan, acknowledge that the report owes much to are at least five reasons why the growth of the GDP might be

6 Economics EIR April 24, 1984 expected to be slower over the next decade.Two of these are There are certain sectors in which Europe as a whole is essentially a consequence of national income accounting con­ in the forefront of technical advance.These include nuclear ventions, and should not be regarded as a cause of concern. energy and all the technologies connected with the nuclear First, output in many parts of the service sector is difficult to -fuel cycle; biotechnology, especially where the food and measure,and is often assumed to move in line with inputs, pharmaceutical industries are involved; even robotics and so that the figures show no increase in productivity.With an numerically controlled machines, mainly where high preci­ increasing proportion of the labour force being employed in sion or high flexibility instrumentation is required; and the service sector, this is bound to have the statistical effect professional electronics,especially when applied to thepub­ of slowing down the growth of the GDP. The same effect lic service sector.. . . The otherarea of European strength.. . will resultfrom. . . a move towards shorter lifetime hours of is a proven ability to inject emerging technologies, such as work.... A voluntary increase in leisure,at the expense of lasers and microprocessors, into traditional industrialfields. work and income, must increase people's welfare, or they This integration.. .has allowed the revamping and ration­ would not choose it; but it reduces the GDP. .. . alisation of mature industries which only a few years ago [Other reasons:] the removal of barriers to trade and cap­ seemed condemned to migration to the third World. ital flows.. . has largely come to an end.. . .the slowing The relative weakness of Europe. .. is due to its low down of the growth of productivity,particularly in the Amer­ standing in a variety of solid state technologies: Very Large

icaneconomy. . . [and wrong] macroeconomic policies.. . . Scale Integrated Circuits and semiconductors ... and the The most extreme danger, a major collapse of the world development of large-scale computers are not areas where economic system, is also the least likely.One can distinguish Europe has been able to compete.This is an ominous trend between two potential causes of collapse.The firstis a major for Europe and clearly much must be done. .. . shock,such as the actual default of a major debtor country, Above all, Europe must. . . seize on the opportunities leading to a chain-reaction of defaults ....The second kind offered by the microelectronic revolution. One priority here of collapse could come from.. . a series of irresponsible or is greater collaboration with the Japanese or NorthAmerican disfunctional policies, such as the competitive protecionist firms which are at the frontier of the high-tech developments measures which various governments took in the early of the late 1980s and 1990s: In particular, joint ventures in 1930s ....A much more likely danger is a fizzling out of which Japanese capital and technology are combined with the current economic recovery and relatively slow growth European labor to produce the goods and services of the throughout the rest of the decade ....[I] n the longer term, future could be of benefit to both regions.Another way for­ the slow growth danger becomes less and less distinguishable ward-not inconsistent with the first-would involve much from the economic collapse scenario because slow growth greaterrationalization of industry on a Europe-widescale, so . weakens support for international economic institutions and that a plethora of national firms would give way to a smaller

strengthens the forces conducive to collapse .... number of large European firms.. . . Americans must come to appreciate that Europeanhistory Western Europe: The European Communityshould become and geography mean that their complex relationships with a "technetronic" giant, with c:apitalprovided by Japan. It Russia should not be automatically labeled as neutralism or should also beef up its economic and political ties with the characterised as "Finlandisation.". .. The division of Eu­ Warsaw Pact-becoming in effe ct a high-technologysatr apy rope is resented by many West and East Europeans,with the fo r the Soviet Union. to fuelits war machine. German desire for closer national links serving as the major catalyst for change.How such change may occur will deter­ Unless the countries of the European Community take steps mine whetherthe relationship between the East and the West

to enhance their scientific and technological development, it remainsstable or becomes increasingly turbulent.. . . appears likely that Europe will be unable to keep pace with Efforts by the trilateral countries to intensify their eco­ America's and Japan's plunge into the technetronicage. . . . nomic, scientific, and cultural ties with East Europe can Despite the two oil shocks of 1973 and 1979, wage­ contribute to gradually binding East and West Europe more earners in Europe managed to maintain the increase in their closely, progressively undoing the division of Europe that purchasing power, in spite of the slowdown in growth, far has existed since 1945. Present tension in East-West rela­ more than in the U.S. or Japan. This European preference tions, notably between the U. S.and the Soviet Union, should for consumption has led to low profitability,low investment not inhibit such efforts.Indeed, over a longer periodof time and to the inhibition of economic growth. There is also a such efforts can also create the basis for a more wide-ranging growing technological gap between Europe on the one hand pattern of economic relations with the Soviet Union itself and the U.S.and Japan on the other.Meanwhile, the cost of while in the meantime contributing to the gradual undoing of the social services in Europe has been rising considerably the existing division of Europe. faster than national income. .. . The cost of defending the West must be more equally

EIR April 24, 1984 Economics 7 shared among the trilateral countries ....Clearly, anything power an increasingly urgent item on the international which persuades the United States administration to slow agenda .... down the growth of its defence expenditure will be a helpful The world's "other energy crisis, " wood shortage rather element in the crucial task of reducing the budget deficit. . . . than oil shortage, is exacerbated by population growth and is There is a second argument for transferring some part of the already radically altering the world's ecosystem ...."Non­ existing defence burden from the U. S. to Europe. There is commercial " energies are still used by half the world in pre­ growing unease in Western Europe about ... the prospect paring food.... If present trends continue, a full 40% of that NATO might feel it had no alternative, in the event of a the animal and plant varieties alive today will be extinct by conventional invasion from the East, to the early use of these the end of the century as their habitats disappear.... nuclear weapons. If a greater European defence commitment were to take the form of a strengthening of its conventional Third World: The InternationalMonetary Fund policymak­ forces, the prospect of ever having to use nuclear weapons ers must remain in charge. The fundamental problem is would be reduced. . . . overpopulation.

Too often the vital relationship between economic growthin Japan: The Japanese should not attempt to build up their the developed and in the developing worlds is over­ exportof capitalgoods to develop the Third World, but should looked .... Developing countries provide the market for fund the IMF and other anti-growth agencies to bail out the about one quarterof OECD exports. . . . [The lack of capital creditors, finance Kissinger's plan fo r Hong Kong-style for growth] must be met by collective international action: economies in Central America, and should abandon their through regional development organisations, governmental domesticmarkets and monetarycontrol to trilateralinfluence. lending, Western investment, and private bank involve- ment. ... Likewise, worldwide organisations such as the Japan's economic recovery continues to lag behind North IMF. . . will have to coordinate giving for critical areas of America's, and given Japan's massive merchandise trade special concern, such as Africa. . . . surplus and continuing trade frictions with its trilateral part­ The most insidious danger is demographic, for it threat­ ners, ail export-led recovery is internationally inexpedient. ens to undo every other gain in health, medicine, and tech­ An expansionary economic policy on the part of Japan is now nology. Although the birth rate has actually declined in all needed. . . . More rapid growth in Japan can help to stimu­ regions of the Third World since 1960, and this reduction late the world economy through rising Japanese imports, appears to have accelerated, the world's population will ex­ particularly if Japan makes further efforts to reduce the dif­ ceed 6 billion by the year 2000. . . . The problem will be ficulties which other countries sometimes encounter when compounded in the developing countries by the continued attempting to export to Japan ....Japan could increase sub­ explosive growth of urbanisation .... stantially its contributions to the international financial insti­ tutions such as the IMF, the World Bank (including IDA) and LDC debt: Only ifthe U:S. budget deficit is cut can there be the regional development banks; and could also assist in lower interest ratesfoT the Third World. Everyonemust sac­ reinvigorating Europe, by direct investment accompanied by rifice to maintain the present system. an injection of advanced technology and management skills. Finally, Japan should continue its efforts toward internation­ At the present time, rescue operationsby the banks, interna­ alisation of the yen, so that it becomes a more important tional agencies, and governments do little more than stave reserve and trading currency. . . . off an ultimate economic or political reckoning ....Thus a West Europe and Japan should give serious consideration critical question in the medium term ... is how to assure to becoming associated ...with longer-term socio-econom­ adequate capital infusions for growth, assuming that com­ ic development plans for the Central American and Carib­ mercial bank lending will be much more restricted than in the bean regions.... past. . . . The importance of a reasonably rapid and sus­ tained rate of growth in the trilateral countries ...can scarce­ Energy: There are too many poor people in the world, con­ ly be exaggerated .... Thus these projections [of higher suming too much wood. Nuclear power is out of the question. interest rates increasing debt burdens] strengthen the argu­ ment. . . for a reduction in the size of the American budget The very long lead-times involved, and the irreversibility of deficit and hence a fall in U. S. and world interest rates. . . . the build-up in the atmosphere of the carbon dioxide that All three parties will have to bear some of the costs of results from the burning of fossil fuels, and of the danger putting the situation to rights: the developing countries,some represented by the increasingly widespread use of nuclear­ degree of austerity; the banks, some writing-off of loans; the particularly breeder-reactors makes the question of a global taxpayers of the OECD countries, increased funding of the strategy to develop inexhaustible energy sources such as solar international financial institutions ....

8 Economics ElK April 24, 1984 magnesium), especially vital for the aircraft production re­ quirements of the Goring Plan war buildup. These cartel arrangementsof the Mellon family's Alcoa with the Gennan Vereinigte Aluminium Werke complemented the more no­ torious Rockefeller (Standard Oil)-I.G. Farben deals.

Spheres of influence then and now So today, key interests among the Anglo-American oil Oil trade shifts to giants and today's Mitteleuropa networks, successors to the various 1930s stripes of fascism-brownshirt, blue shirt , Mrican west coast clerical-find many common interests, including that of ac­ commodation with the Soviet Union. The pullout from the Mideast, in tenns of dependency on the region's oil, has been by Konstantin George accomplished at breakneck pace over the past 18 months by the English, Gennan-speaking, and Scandinavian parts of When the United States withdrew from Lebanon, a "Saigon Europe, where the British monarchy and its oligarchical in­ II" abandonment of the strategic Mideast architected by Hen­ laws have the greatest power. ry Kissinger and his British "New Yalta" superiors like in­ The year of the big shift in Gennan oil purchases was coming NATO Secretary General Lord Peter Carrington, 1983. Purchases from Saudi Arabia collapsed from 1'7 mil­ important shifts began to occur in the world oil trade. The lion tons in 1982 to only 7 million tons in 1983, or in deut­ pullout symbolized Kissinger and Carrington's endeavors to schemarktenns , from 11 billion to only 4 billion. Oil imports deliver the Mideast to the "Soviet sphere of influence." from Oman likewise went through the floor, from 1 billion The Persian Gulf region is synonymous with oil. Any DM in 1982 to only 140 million DM in 1983. The Gennan strategic vacating of the area must be mirrored by major tradeboom with Khomeini' s Iran did not affectthe geography occurrences in the oil industry. In looking for Kissinger's of oil dependence, as the boom consisted of 7.7 billion DM footprints in the internationaloil trade, one finds some stun­ in Gennan exports to Iran, and about 1 billion DM worth of ning moves since the Marinesleft Beirut. oil purchases. A discussion with an officialof the West Gennanforeign Of Gennany's top eight oil suppliers, only one, Saudi ministry (Foreign Minister Hans-Dietrich Genscher is very Arabia, is from the Mideast. Gennany's number-one sup­ close to Kissinger and Carrington) about the "hypothetical" plier-also true for the Netherlands-is Great Britain (which case of Persian Gulf oil being shut down through Iranian or is self-sufficient), while Sweden now is also primarily served Soviet action, yielded the following response: "If the Persian by Britain's North Sea oil, in this case through Norway. Gulf is closed off, it will not affect·us. We've shifted our oil Gennany's number-two and -three suppliers are on the Afri­ dependency away from the Mideast to the North Sea and can continent-Libya and Nigeria, respectively. Africa." This is not the first time in this century that the oil­ Soon after the Beirut humiliation, Henry Kissinger was producing regions of the Mideast have been offered to the named as a consultant to Standard Oil of California(So Cal), Soviet sphere of influence, in return for some kind. of raw and its subsidiary, Chevron. Untill then, SoCal had the main materials regroupment in Africa. "Secret Protocol Number weight of its overseas operations in Saudi Arabia, where it One" of the Hitler-Stalin Pact is revealing in this respect. fonns one of the partners in Aramco. Then in February, Point one of the Protocol: "Gennany declares ...the main SoCal, in the biggest merger ever in oil history, acquired the thrust of its territorial aspirations lie in central Africa"; and mammoth Gulf Oil corporation, and in so doing shifted the pointfo ur: "The Soviet Union declares that the main axis of weight of its overseas oil drilling to Africa. SoCal has ac­ its territorial aspirations lies to the south of the territory of quired through Gulf the major Cabinda oil fields in the An­ the Soviet Union, in the direction of the Indian Ocean." golan enclave northof the Zaire River (oilfieldswell protect­ Soviet Foreign Minister Molotov's note to the Gennan Am­ ed by several thousand Cuban troops, an arrangement with bassador Graf von Schulenburg, dated Nov. 26, 1940, rei­ the Soviet Union that Henry is sure to keep), and Gulfs terated the point: .".. the aspirations of the Soviet Union in extensive holdings in Nigeria. the area south of Batum and Baku [Turkey, Iran, Iraq) lie in SoCal's new partner,Gulf Oil, is the traditional property the general direction of the Persian Gulf." of the Mellon family in Pittsburgh. The Mellons are a nasty In the present scramble to accommodate the U.S.S.R., bunch-in the 1930s through their bauxite-aluminum mo­ these old notions of spheres of influence and "strategic raw­ nopoly (Alcoa, etc.) they worked out international cartel materials preserves" have again turnedup , in the wake of the arrangements highly favorable to Nazi Gennany on the pro­ Soviet occupationof Afghanistan, the Khomeini takeover in duction and importationof strategic light metals (aluminum, Iran, and the Lebanon "Saigon II" disaster.

EIR April 24, 1984 Economics 9 Interview: Dr. Bill Gazaway, Plant Pathologist

The EDB banhi ts soybeanfa rmers, forebodes U. S. fo od shortages

From the headlines in the national media, the public might Dr. Bruce Ames, who heads the biochemistry department at assume that when the Environmental Protection Agency the University of California, says that eating a peanut-butter banned the use of the pesticide EDB for stored grain and sandwich is more risky than eating EDB-laced muffins. Why? grain milling equipment on Feb. 3, 1984, a grave risk was Because of the natural carcinogens potentially present in eliminated from our daily lives. The opposite is the case: as peanutbutter. "We'regetting 10,000 times more of nature's theAlabama case presentedhere demonstrates, not using the pesticides than we are of man-made pesticides," say Ames. pesticideethylene dibromide is probably a greater risk. EDB was suspended as a soil fumigant in September The realdamage to COllsumers over the chemical EDB is 1983. In the interview below, Dr. Bill Gazaway discusses that the American peoplehave come to believe news reporters how the ban will severely affect the soybean crop in Ala­ and environmentalists instead of scientists about the risks bama, because it is the most effective and economical pesti­ involved frommodern technologies like pesticides. What the cide that can be used there for soil fumigation. Gazaway is a media scare stories don't tell you about the traces of EDB plant pathologist at Auburn University in Alabama, who found in processedgrain products like cake mix and flour, is works with the Alabama Cooperative Extension Service ad­ that 90%or moreof the tiny traces of the chemical is "cooked vising farmers and agribusiness throughoutthe state on pes­ out" when the product is baked. ticides and plant disease. The scaremongers also don't tell you that although EDB has been used for 40 years, there is no scientific evidence Q: How will the EDB decision affect Alabama's soybean showing that small amounts of EDB-parts per billion­ growers? cause cancer in humans, although it is a carcinogen in labo­ A: Presently we'reusing EDB quite extensively in the south­ ratory rats. According to one scientist at the University of erntier of the state, wherethe peanut root-knot and soybean­ California, a rat would have to eat a I,OOO-pound muffin cyst nematodes are the primary problems. laced with 5,000parts per billion of EDB every day in order Statewide, roughly 28.6% of all soybean fields are in­ to increase its chance!, of getting cancer from a normal 30% fested with these soybean cyst nematodes, and we just ran a to 50%. recent survey which shows that most of the soybean fields in The EPA has set a suggested standard of 30 parts per the southern area are infested with the root-knot nematode. billion for the allowable residue of EDB in ready-to-eat grain This means that in our major producing areas in the south, products. One partper billion is like 1 pinch of salt in 10 tons you almost cannot grow soybeans without running into the of potato chips, or 1 second in 32 years, or 1 inch out of root-knot nematode problem. 16,000 miles. That does indeed create a serious problem, since most of There is no question that EDB is a toxic chemical. It our soybean varieties do not have good resistance to root­ efficiently kills bugs, and it is particularly effective as a knot nematodes, particularly the peanut root-knot nematode. fumigant for storedgrain, elimination of fruit flies fromhar­ This means that either we're going to have to rotate with vested citrus fruits, and as a soil fumigant forrow plants like other crops, or we're going to have to use nematocides. And peanuts or soy beans. the only effective nematocides against high cyst or root-knot Has this usage of EDB increased the risk of cancer to the infestate are the ethylene dibromide (EDB) compounds. population? The inventor of the international test used to What it boils down to is that we are out of effective determine whether substances are carcinogenic to humans, weapons to combat this problem, particularly in southern

10 Economics EIR April 24, 1984 Alabama, and this is getting to be such a problem that frankly Q: How prevalent is stem canker? 1 don't know whether our soybean farmers are going to A: Stem canker is present in every major soybean producing survive. county in the state except for Baldwin and Mobile counties on the Gulf. The counties to the north of there are heavily Q: You mentioned that crop rotation could be an alternative, infested with stem canker so it's probably just a matter of and 1 know that in Mississippi crop rotation was effectively time before these two counties are infested. used to combat both the cyst nematode and stem-canker disease. Q: What monetary loss do you expect from the EDB ban? A: Yes, but that is not the complete story. Rotation can be A: We're assuming this year that the gross loss is approach­ used to combat the soybean-cyst nematode, which predomi­ ing 11. 7 million bushels, and if you figure the cost at $6 a nates in Mississippi. In Alabama, the root-knot predominates bushel, that is a $70.5 million loss. At $7 a bushel, that is an in the southern counties where a major portion of our soy­ $82.3 million loss. Now of course, you would have to sub­ beans are grown. tract the cost of ethylene dibromide. If you were to subtract For one thing, the soybean-cyst nematode feeds and mul­ that, the net return would range between roughly $60million tiplies on relatively few other host plants or crops, which and $70 million in losses. makes crop rotation effective. In contrast, root-knot nema­ todes attack many different crops, which means that rotation Q: In terms of the economy of the state, what does this is not as good in trying to control the root-knot as it is in mean? controlling soybean-cyst nematodes. A: It's our major crop in the state. So it simply would hit us The same is true with use ofre sistant varieties. We simply very, very hard. It would be very difficult for us to recover are findingout in Alabama that some of the root-knot-tolerant that loss. or so-called resistant varieties are not holding up under the pressure that we have in Alabama. Q: What do the farmers plan to do? When rotation is not effective, when resistance is not A: The farmers right now don't know what to do. We're in effective, what do we have left? We have nematocides-and a situation right now where we're going to try to look at a the only nematocide that is effective, again, is EDB. field-by-field situation. We're going to certainly ask them to rotate as best they can, knowing full well that this is not going Q: As of September, the EPA banned using EDB. And I to be the complete answer, because of the difficultyof rotat­ understand the situation is further complicated by the spread ing in those fields in south Alabama where there are either of the stem-canker disease. mixed populations of root -knot and cyst nematodes, or where A: Stem canker is an alarming complicating factor in south you have straight populations of root-knot nematodes. Alabama where the cyst nematode is a problem. Effectively, Otherwise, I don't know; I simply don't know what we're what stem canker does is negate all the weapons that we had going to do at this time. . . . These people are going to be in formerly used to control soybean cyst. You can rotate your trouble. crops, but the problem is to finda market for that crop with I was rather optimistic about the eventual outcome of the which you're rotating. A farmer says, "Oh, yes, we'd like to problems that we're now experiencing, simply because once rotate, but what are we going to do with itT' A lot of our people start paying extremely high prices at the grocery and farmers , particularly the smaller farmers , are simply not set then once food shortages develop, we will have a returnto up to rotate crops ....They simply are one-crop farms. I rationality. realize that that is not a good system no matter what you do, but still, that's the fact. Q: But it seems to me that realization is going to hit toolate . With stem canker coming in, they could have used­ With agriculture, a start-up time is needed. If you kill off could have, I repeat, used-EDB to control cyst and root­ your livestock, for instance, as cattlemen are doing, it takes knot, which would have allowed them to continue using stem a good 18 months before you can build back the herd. canker resistent varieties. A: I think the lack of sensitivity on the part of the general public to the plight of our farmers is incredible. They've Q: So in order to use a soybean variety that's resistant against taken farmers for granted much too long. It's the one partof stem canker, the farmer needs EDB? the capitalist system that has seemed to work, up until A: Yes, the two soybean varieties resistant to stem canker now. . . . Sooner or later the farmers are simply going to are susceptible to the soybean cyst and peanut root knot so come to their end. And we're going to develop food short­ they cannot be used effectively where high populations of ages. There will be a reversal, but I don't know whether it these nematodes are present. will be too late or not.

EIR April 24, 1984 Economics 11 Gold by Montresor

The case for gold cial rate, paying about 30% over the A rare statement of opinion on the part of our distinguished dollar-equivalent official price . In the past, the government used columnist, who has surfaced once again. its ventanillasinestra to obtain dollars obtained on an illegal basis, in order to build up its currencyreserves. It has now shifted to buying gold obtained on an illegal basis, for roughlythe same purpose. My view has been, since I agreed fying action, persuade them to run for Colombia's government does not to put my thoughts in print for this safety. Under either of these condi­ have very much choice in the matter; publication, that the role of a journal­ tions, gold should improve it has been pushed in this direction by istic commentator is to provide useful substantially. the decision of underground economy information perhaps not obtainable What prompts me to draw atten­ operators to shiftinto gold as a means elsewhere, and caveat emptor. Gold tion to the obvious is less any single of international payment. is, afteral l, not an investment-it is a event than the awful malaise detecta­ Considering the difficulty of sterile metal-but a form of insurance ble at the American Treasury, at the maintaining dollar accounts in the policy against monetary turbulence. International Monetary Fund, in Lon­ Caribbean and other offshore centers However, under the circum­ don's City, and other centers of finan­ in an era of exchange controls, it is not stances, it seems reasonable to argue cial policy. surprising that the dollar (except as that those who do not now own gold The resolution of the Argentine sheer currency) would lose ground in might do well to purchase some in the crisis at the end of the last quarter sets the Latin American narcotics traffic. $370-to-$380 range [gold closed at in motion a possible confrontationbe­ But these developments on the $379 when Montresor's column went tween the United States and its chief borderline of financiallif e indicate the to press-ed.]. debtors which can benefitneither, but broader problems involved. It is not There are three basic directions might well trigger a general monetary merely that the bank accounts of those which the world economy might take, crisis of dreadful proportions. It ap­ who smuggle drugs out of Panama are and two of them would be good for pears to be time to take out one's no longer secure, because narcotics­ gold; the third, although bad for gold, insurance. money tranfers may no longer be could not last long. That is, the Fed­ One unpleasant indication of the mixed into the flow of flight capital eral Reserve Board might decide to possibly central role of gold is the re­ from other sources. It is not merely force into the United States the vol­ cent action by the Colombian govern­ that black money stands out because ume of capital flowsobtained last year ment to purchase all the gold that nar­ the flowof grey money has attenuated. when more foreign savings were cotics traffickers can bring into the The banking system which grew ex­ available in general, this by pushing country from Panama. plosively with the 1970s offshore bub­ interest rates up fiercely. Under such With the collapse of dollar credit ble is no longer viable, and the banks circumstances, the price of gold might operations in Latin America, locally who built their branching networks drop nastily, but the impact of such a produced gold has become something abroad are over-extended. policy upon the creditworthiness of the of an international currency, along This identifies the possibility of a entire world would militate against its with bags of coffee, American $100 general monetary crisis, with a much long duration . bills, and other relatively transporta­ worse outcome for the dollarthan ster­ Otherwise, the European portfolio ble items that can be used to bring ling suffered (cushioned by the British managers who have been the dollar's funds across international borders . The Empire's colonial trading base) dur­ greatest support will begin to with­ subject of a wire-service item on April ing the aftermath of July 1931. It is draw funds, let alone place new ones, 7, the example is instructive. impossible to tell what will happen to and diversify into gold, among other Like most Latin American curren­ gold in the short run; it is merely the vehicles; or, the' Soviets will demon­ cies, the Colombian peso is available case that the insurance policy is now strate even to the Swiss that it is bad on the street at a 40% discount. The priced relatively cheaply, while the business to make quiet deals with the government is, therefore, buying gold dangers to be insured against have Russian Empire, and, by some terri- in pesos at a "premium" over the offi- grown out of hand.

12 Economics EIR April 24, 1984 Foreign Exchange by David Goldman

Institutions look for foreign equities less the Fed jerks rates sharply up­ Higher interest rates haven't helped the dollar's parities. Even wards, the dollar will decline during the second quarter, and the impact of the mickeys are catching on to the crash potential. anyrise in rates will only betemporary. German central bank chief Karl­ Otto Pohl stated the position of major European investors April 5. Pohl pre­ dicted a monetary crisis should the United States fail to reduce its budget Institutional money managers are lief the dollar's major fall may occur and current account deficits, saying usually the last to hear about anything. much sooner, particularly if the Third that the financing of U . S. government The extent to which leading New York WorId debt crisis forces an easing of deficits depended upon capital in­ fund managers are seriously consid­ Federal Reserve policyin order to pro­ flows, noting the fact that the United ering portfolio diversification into tect the banking system. The possibil­ States had shut off lending to the de­ British, Dutch, German, Swiss, and ity of a general monetary crisis, and veloping sector and that American Japanese securities is, in itself, some­ the determining role of the debt prob­ banks last year became net borrowers thing of an indicator of the dollar's lem in the currency markets, have from the Eurodollar market forthe first vulnerability to a major decline. pushed their way into the awareness time in history. This interest in international div­ of the institutions. This argument was restated by the ersification was evident at a seminar The failure of the dollar to respond International Monetary Fund staff held by the British brokerage firm much to expected interest-rate in­ during the April 14- 15 meeting of the Phillips and Drew in New York on creases shows the enormous potential Fund's Interim Committee in April 12 and 13. The British firm be­ -for the dollar to fall. So does the enor­ Washington. lieves that the foreign portion of mous rise inthe Eurodollaryield curve. The West German central bank­ American institutions' holdings will The yield curve showed a 2% discrep­ er's statement is the toughest ever from double, to about 5% of the total, dur­ ancy between overnight money and that source, and Volcker's statement ing the next several years. one-year money at the end of the week of American dependency on foreign Phillips and Drew's argument to of April 9, indicating that dollar hold­ capital inflows the most blatant. A the assembled money managers was ers were unwilling to commit funds "scissors" opened up in January on the simple: The dollar will fall, and a se­ for more than the shortest periods of financial markets, between rising in­ rious comparison of overseas equities time. terest rates and a weak dollar. The and bonds (with an emphasis on equ­ As recently as March 15 , over­ scis,sors will widen during the second ities) is warranted. Economist Bren­ night Eurodollars traded at 10.0%, quarter, although it is difficult to tell dan Brown presents this case with while six-month Eurodollars were at how much of the gap will be registered enormous reserve, arguing, "A major 10.68%. The gap has now doubled. respectively in the interest rate and the change in sentiment regarding the U. S. Part of the bulge in longer-maturity exchange rate. dollar may not become apparent until rates reflects funding pressures on an One caveat is that Soviet military U.S. growth is slowing, concernover interbank: market overshadowed by the moves aimed at Western Europe might inflation is rising and action to cut the Latin American debt situation. Euro­ provoke flightof funds away fromen­ budget deficit is expected. It is at this pean banks are writing off their Latin dangered countries, e.g., West Ger­ point,namely the firstquarter of 1985, American exposure and determined to many, into the dollar. This, however, that we believe such considerations, participate in no more such bailouts, can also work the other way: To the allied to rising interest rates in Europe, while theLatin Americans have roped extent that leading European financial will lead to a significant fall in the themselves together through the Ar­ interests who believe they have a deal value of the U.S. dollar, with the DM gentine package of March 31. with the Russians perceive success on and some other European currencies These developments on the credit the part of the American decouplers, gaining more than the yen." market, like the market rates paid by Kissinger, Brent Scowcroft, et al. , Questions from the floor and pri­ Texaco for its $800 million converti­ they may determine to run the dollar vate discussions among the British ble Eurobond in March, reflect pro­ down in order to drive home the mes­ firm's officers indicate a growing be- found potential dollar weakness. Un- sage of Karl-OttoPohl.

EUR ApriI 24, 1984 Economics 13 Advertisement Advance Notice Currency Rates of Sale

1200 CoinMS -65 Morgan Dollar Collection

to be sold starting April 30, 1984 The dollar in deutschemarks New York late afternoon fixing NEW YORK-We have just completed negotiations on an extensive accumulation of Original Morgan 2.80 Silver Dollars. 2.7S Although we have not yet completed an inventory of all the coins that are to be offered, we can tell you 2.70 f\ now that there are over 1200 coins in this sale worth in excess of $250,000. 2.65 V , There are coins in all states of preservation ... with �� 2.60 \ IA. L � /" many of the coins in Original Gem Uncirculated 2122 2I29 � 3/21 � 4/4 41JJ (MS-65) condition. Most of these dollars will fa ll in the price range of $95.00 to $400.00 each. There are over fifty dif­ The dollar in yen ferent dates and mint marks represented. New York late afternoon fixing Morgan silver dollars have been one of the 260 strongest of all hard money investment vehicles for the past fifteen years. They have appreciated over 250 2000% in the last 10 years ... and in 1983, Mint State 65 Morgans increased over 43%. 240 � Most fort';casters agree that these coins will go up 230 '"'- another 300% over the next four years. We will be offering these coins starting at 9:00 220 '-� 2122 2129 317 3/14 3121 3/28 414 4/11 A.M., Monday, April 30 , 1984 on a first -come, first ­ served basis at only 15% under current Grey sheet price. The prices will be determined by quotations from the Coin Dealer Newsletter ask price less 15%. The dollar in Swiss francs. DO NOT MISS OUT. We will only send a New York late afternoonfixing complete price list to those who express an interest. Call immediately (or send in coupon below) fo r a list! 2.25 Call (8001334-0854 Ext. 810 (in N.C. (800) 672-0101). 2.20 A We will be offering Gem Uncirculated MS-65 - Morgan Dollars at the following prices: 1886-P at 2.1S . , ""'" ,- -- ./ -"" V" $145.00, 1887-P at $150.00, 1879-S at $150.00, 2.10 V 1878-S at $175.00, 1883-CC at $245.00, 1898-0 at \ r $285.00, 1899-0 at $315.00, 1878-CC at $330.00, 2.05 1883-P at $380.00. 1881-P at $395.00. 2122 2129 317 3IJ4 3/21 3/28 4/4 4/11 Send this ad (not a copy) to Security Rare Coin Center, 34 Milford Drive. P.O. Box 467, Central The British pound in dollars Isl ip , NY 11722. or caIl (516) 234-6885. (800) New York late afternoon fixing 344-0854, Ext. 810 (In N.C. (800) 672-0101).

1.50 Security Rare Coin Center (516) 234-6885 � ..... 34 Milford Drive · P.O. Box 467 (BOO) 344-0584 Ext. 810 1.45 ( rv- --- ."... - -- Central Islip, NY 11722 (In N.C. (800) 672-{)101) � "'- 1.40 V , I YES Please send me the complete price list and order form fnr the Special Morgan Dollar Sale. 1 04 23 1.35 NAME

HOME PHONE�_____ BUS. PHONE � �.. � __ . 1.30 3/28 AD[)R£SS�_. 2122 2129 317 3IJ 4 3121 4/4 4/11

CITY �_STATE ____ ZIP

14 Economics EIR April 24, 1984 Labor in Focus by Laurent Murawiec

Lorraine on fire EC COIJlIIlission deputy chairman The suicidal French decision to furtherslash the steel sector has Viscount Etienne Davignon, whose name has become synonymous with led to riots and a general strike . de-industrialization and economic devastation, has sponsored a Malthu­ sian plan to massively contract Eu­ rope'ssteel prod uction, under the pre­ text of"a�pting to crisisconditions ." Italy is reducing capacity by 5.8 mil­ Lorraine, the eastern steelmaking daily, the Republicain Lorrain. Dur­ lion tons, Britainby 4.5 million, West region of France, came to a halt on ing the day-long general strike, the Gennanyby 7 million. Luxembourg's April 5 . Shops, schools, and city halls region was cut off from the rest of the output will shrink by 25%. Holland's remained shut and public transporta­ country. "Lorraine Secedes," a news­ Hoogoverns company is reducing ca­ tionwent dead in a general strike , while paper wrote . Four Socialist members pacity by morethan a million tons this tens of thousands of demonstrators of Parliament quit their party; so did year alone. marched through the street,s of Metz, one Communist mayor of a nearby In Belgium, as a precondition for Longwy, Thionville, and the towns of small town (the party is in a coalition the government takeover of $1 billion the steel valleys, where furnaces first with the Socialists). of its debt, the large CockerillSambre went up in the 17th century . On April 4, Industry Minister company is cutting capacity by 2.7 For the past 10 years Lorraine has Laurent Fabius, visiting Metz, the million, from 9.7million tons, shed­ undergone the systematic destruction capital of Lorraine, declared there ding 9,000jobs and negotiating a 10% of its steel industry under the "post­ would be no change in the steel plan. wage cut for the remainder of the industrial society" policies enforced On April 10, trade unionists in the workforce. In Gennany, 30,000 steel by the European Commission, the in­ Lorraine region declared: "No new in­ jobs are slated to go, a spokesman for strument of the most backward-look­ dustries will be created on the ruins of the Iron and Steel Association stated ing "families" of Europe. Now the fi­ the steel industry," and announced a this month. Not yet a full EC member, nal blow had been delivered: a plan to mass march on Paris April 13. Spain is following suit: 10,000 of the cut steel jobs by 28% . The Mitterrand government's de­ 36,000 employees of the three major Church bells rang and 25,000 cisions, taken under pressure from Fi­ steelmakerswill be laid off within five marchers protested the "Steel Restruc­ nance Minister Jacques Delors and the years, 4,000 withinsix months. turing Plan" put forward by the So­ European Commission, will cut one Mitterrand promises that "no cialist governmentof Fran�ois Mitter­ in four steel jobs from today's 90,000, worker will be laid off," since early rand, which calls for the phasing out after a loss of 40,000 jobs in the past retirement and retraining schemes are of 25,000 steel jobs within two years­ 10 years . France's most modem mill, planned. This has been received icily most of them in Lorraine. One job lost the specialty steel plant at Fos s6r Mer by steelworkers . A governmentthat is in steel means three others lost in re­ near Marseilles, will be shut down. cutting 30% of shipbuilding capacity lated sectors. The planned universal strip rolling mill at the same stroke, and plans to mis­ On the day the plan was proposed, at Rombas-Gandrange in Lorraine will invest masses of taxpayers' money in riots had broken out. Rail installations not be built. A slew of other mills will post-industrial electronic gadgetry­ wereattacked , SocialistParty and steel be shut, and the government's inept under the influence of the President's company offices ransacked and put to plan will concentrate 27-30 billion bizarre adviser, video-game fan the torch, statues tom off city squares, francs of expenditure (15 billion for Jacques Atali-is not trusted to pro-· tax offices and public buildings de­ investment) on "plant moderniza­ vide jobs. faced and damaged. Steelworkers and tion," only 7 billion in Lorraine. As While the Soviets arepouring their others clashed with the riot police; 15 prescribed by the European Commis­ steel into military hardw�it takes were injured in Longwy, several sion, no state "subsidy" can be ex­ a lot of steel to build a giant submarine severely. tended without capacity reduction. The or a tank-Europe's defense potential "Lorraine Betrayed" was the ban­ EC plan calls for 5.3 million tons of is being destroyed by Davignon and ner headline of the region's leading capacity to be cut in France. Company.

EIR April 24, 1984 Economics 15 BusinessBrief s

Ibero-AmericanDebt demanded by the International Monetary European Labor Fund in exchange for loans could lead to the Peru dismisses second "political and social destabilization" of Af­ We st Germany rican nations. Delors stressed that Africa IMF sympathizer was going though "a terrible period ." facing strike wave The African finance ministers called for The government of PeruvianPresident Fer­ aid to Africa, to prevent its becoming "a Talks between employers and West Ger­ nando Belaunde Teny forced Prime Minis­ continent forgotten by development." The many's biggest trade union, the metalwork­ ter and Foreign MinisterFernando Schwalb U . N. Food and Agriculture Organization is­ ers of IG Metal, broke down April 7, mak­ to step down April 10, prompting the Inter­ sued its fourth report April 8, stressing that ing it very likely that the country will shortly national Monetary Fund to announce the the crisis now hitting Africa "risks reaching be faced with a strike wave. The disputed "indefinite postponement"of a $250 million even more dramatic dimensions that the issue is the demand of the IG Metal leader­ loan to Peru until the economic policies of drought in the Sahel in 1973 and 1984," ship for a 35-hour week, the union's pro­ Peru's new ministers become clear. which killed at least 100,000 people. posal to deal with Germany's severe unem­ Finance Minister Rodriguez Pastoras left The Club of Life has calculated that at ployment problem . office at the end of last month because of least 43 million tons of grain are necessary Leaders of the 160,000-memberprinters popular opposition to the IMF's austerity to save the lives of millions of Africans union said the week of April 9 that they dictates. threatened by famine this year. One million would call strike ballots "at certain compa­ tons are needed before the end of April , nies" after talks with management on the 35- especially in southern Africa, where there hour week also collapsed. Already an un­ be Africa will no harvest this spring . precedented wave of brief "warning" strikes at engineering companies in the southern Governments make urgent state of Baden-Wiirttemberg have taken Steel place. call for food aid Leaders of the German peace and envi­ Japan contract rejected ronmentalist movementshave boasted to in­ The government of Somalia is now desper­ vestigators recentlythat their coming offen­ ately calling for aid because it has only 10% by Brock and Draper sive would surpass all previous ones , be­ of the cereals it needs to feed its population cause it would have the supportof the trade this year. One month after Special Trade Representa­ unions. Various union leaders have issued In Mozambique, infant mortality has tive William Brock and Eximbank chief statements to the effect that the trade-union reached 240 per thousand, meaning that one William Draper III rejected financing for movement has the duty to expand its con­ quarter of all children die before reaching $100 million worth of steelmaking equip­ cerns to involve "peace" issues. the age of one. The U.N. children's orga­ ment to the Pohang Steel Company of Ko­ nization Unicef issued a press release March rea, Japan and West Germany have filled 19 announcing a program of aid to 15,000 the order. people in Mozambique, mostly women and The consortium, organized by Japan's Gold children, suffering from "severe protein de­ Mitsui and Company , received an $80 mil­ ficiency. . . . Many of these children are in lion contract from the Pohang Steel Com­ Investors predict price need of round-the-clock feeding , and many pany to construct a continuous casting mill. are so weak they will have to be spoon fed Korean Heavy Industries Construction rise as dollar collapses with special foods." Company and West Germany's Mannes­ The government of Mali is calling for man-Demag are also participating in the The spring issue of the U.S. Economic-Gold 330,000 tons of cereals to feed its popula­ contract. The plant will bebuilt at the K wan­ Outlook newsletter predicts a year-end rise tion affected by drought, and it is organizing gyang integrated steel facility, to be com­ in gold prices to some $525-$550 an ounce the rapid sale of many of the cattle owned pleted by 1987 . The new mill will put out and higher prices in 1985 as the dollar col­ by nomads in the Sahel, in an attempt to 2.7 million tons of crude steel when oper­ lapses and inflation re-accelerates. prevent the herds from dying slowly of ating at top capacity . The newsletter calls the political envi­ starvation. The swift action by Brock and Draper to ronment increasinglyuncertain as President Aftera two-day meeting with the finance block the export of steelmaking equipment Reagan's serious foreign policy mistakes ministers of several African nations , French cost the United States an estimated 11,000 hamper his chances for re-election, and as Finance Minster Jacques Delors stated April jobs in the metalworking and heavy electri­ the voting population becomes far less san­ 10 that the "sometimes" draconian measures cal industries. guine on the question of the expansion of

16 Economics EIR April 24, 1984 Briefly

• BRAVO AGUILERA, Mexi­ co's Foreign Commerce Deputy Sec­ retary , declared in a press conference April 13 that a Regional Generalized TariffSystem for Mexico, Brazil, and Argentina will be created in June of the economy "part [of which 1 can be attrib­ merger of American Express with the Leh­ this year. The system will reduce tar­ uted to inflationary expectations"-with man Brothers Kuhn Loeb investment firm. iffs by 60% . "present prosperity setting into motion forces Senator D' Amato has suddenly discov­ that will bring the expansion to its end." ered that "drug dealers in the United States • MIGUEL GONZALEZ Avelar, The re -acceleration of inflation and the conceal billions of dollars in countries like head of the Mexican Senate, told the weight of the budget deficitin relation to the the Bahamas , Cayman Islands , and others, Mexican Congress April 12: "No­ overall size of the economy are making the where lax banking laws prevent scrutiny. where 'have we talked about a mora­ dollar "a less attracti ve investment vehicle , " These offshore bank accounts are the glue torium. The state's will is to pay off the newsletter continues, and warns of the holding the major criminal operations its international commitment, but risk of a sharp deterioration in the value of together." there is no doubt that foreign debt , the dollar as foreign investments decline­ D' Amato's legislation, introduced on service could result in grave and something that "of course would be desta­ April 12, will strengthen the hand of the sometimes unpredictable results for bilizing. But it could happen," Treasury Department by 1) providing for a those countries. If the high floating A cutoff offore ign investment funds will central subpoena power in the Department, interest rates . . . go up unrestrained­ force the burden of financingthe budget def­ enabling Treasury to review all suspicious Iy, thereis no way to pay , even though icit entirely on domestic money markets, cash, check, wire. and other transfers to off­ that is the intention." and force up interest rates-an "economic shore banks; 2) raising the civil penalty of scenario which carries with it the hazard of only $1,000 against financial institutions • RAUL ALFONSiN, the presi­ credit failures on the part of less developed willfully violating the reporting require­ dent of Argentina, characterized the countries," and "severe repercussions to the ments of the Bank Secrecy Act to the full world financial system as "quite American financial system. Policy makers amount of the overseas transaction in­ perverse" in an interview with the would then have to resort to inflationary volved; and 3) providing for the first time a Mexican daily Novedades on April measures to stave off credit fa ilures and the civil penalty against individuals. 12. collapse of major commercial banks ," the The provisions, laudable in themselves, newsletter asserts. would have little effect on the process of de • PAKDEE TANAPURA, EIR It is in this context that the International facto deregulation which is turning large bureau chief in Bangkok, discussed Gold Corporation Limited predicts its rising sections of the "legitimate" U.S. financial the feasibility of a sea-level Kra Can­ gold prices, assured that institutional inves­ structure into a money-laundering operation. al at a seminar of Thai military and tors and money managers are "merely business leaders the first week in awaiting a greater sense of certainty that April . A senior army commander who inflation is re-emerging and gold will be an InternationalCredit had called the canal too expensive appropriate investment." and politically dangerous because it Brazilian finance minister: would divide northern and southern Thailand agreed to review his evalu­ U.S. 'playing with fire' ation. Sources report that Malaysian Black Economy Foreign Minister Ghazali Shafi re­ cently devoted several paragraphs of Brazilian Finance Minister Ernane Galveas a speech to urging Thailand to reopen Amato to move dope warned the United States that it is "playing D' an economic fe asibility study of the with fire" by permitting international inter­ Kra project, which would benefit all trade 'onshore'? est rates to rise on the heels of U.S. interest of Southeast Asia. rate hikes. Galveas's statement was made New York Senator Alfonse D'Amato (R) over the April 7-8 weekend. • HARUO MAEKAWA, gover­ has announced his intention to introduce the Economists estimate that the increase nor of the Bank of Japan, said that "Drug Money Seizure Act." in an effort to over the last few weeks has added nearly central bankers at the April 2 monthly shut down offshore drug .. money-laundering $700 million to the $11.5 billion debt ser­ meeting of the BIS reacted calmly to operations. vice Brazil must pay this year. the recent increase in the Fed's dis­ But D'Amato's belated move to "break Commenting on the implications of the count rate . At an April 11 press con­ the back of the drug czars" can be read as a rate hikes, the daily Jornal do Brasil edito­ ference at IMF headquarters in gambit by the New York financial interests rialized that "the austerity programs demand Washington D. C. , Maekawa said the who control him to fac ilitate a reorganiza­ much of the population. The underdevel­ rise will not adversely affectthe world tion of dirty-money capabilities from off­ oped economies are supporting, or in some economy . shore to "onshore ." cases financing, the recovery of the rich D' Amato's call coincides with the nations."

EIR April 24 , 1984 Economics 17 ImTIillSpecialReport

Will U. S. challenge Soviet militarization of space?

by Criton Zoakos

The United States' intelligence and national security officialsin the course of the past six weeks have developed the self-deluding rationalization that the u. s. laser­ beam-based antiballistic-missile defense program has "merely" been delayed "by about one year" afterPr esident Reagan's pathetic capitulation to the "palace guard" of Michael Deaver and James Baker III, who are in cahoots with Henry Kissinger's organization at the State Department. In reality, what the national security of the United States is faced with is the fact that President Reagan's own "finest hour, " his proclamation of the March 23, 1983 strategic doctrine of "Mutually Assured Survival," has been scrapped by President Reagan himself. It did nbt happen overnight with a single act, though specific events over the past two to three months bore singular significance in bringing down the program. Such an event was the President's compromise with the GOP Senate leadership which resulted in cutting the administration's defense budget request by about $59 billion over the next three years . Such an event was the appointment of Henry A. Kissinger to the President's Foreign Intelligence Advisory Board. Also the President's meeting with Gen. Brent Scowcroft April 9 and the President's statement to the press that day in which he unambiguously announced that his views on the anti-missile defense program, now dubbed Stra­ tegic Defense Initiative (SDI), are identical with those of General Scowcroft. Scowcroft's views on the matter are those of Henry A. Kissinger, and Kissinger wants the programstopped at all costs, as he has said on numerous public occasions. In the course of this chain of capitulations by Reagan, congressional opposition was moving with determination. The House Armed Services Committee voted to cut the SOl appropriation for fiscal 1985 by 25%. Supporters of the program in the Senate reported that the opposition is organizing itself so effectively that "we should consider ourselves lucky if we have a military R&D budget on the same level that it was before Reagan announced the new policy." During the same time span, no fewer than 57 congressmen formed a coalition against the "militarization of space," led by two KGB-linked CaliforniaDemocrats in the House, George Brown, Jr. and Ron Dellums. Henry Kissinger coordinated

18 Special Report EIR April 24, 1984 The Soviets have announced plans to have a a large, permanently manned space stationorbiting the earth in the 1990' s. The Pentagon is sounding the alarm on the Soviet space program, but President Reagan has capitulated to the arms "\<> "'�i'::�: \.��f",<� .� controlcrowd. Soviet Military Power a ploy with West German Foreign Minister Hans-Dietrich sile defensive systems, to add to its already overwhelming Genscher whereby the government of the Federal Republic superiority in strategic offensive weapons. would launch a European-wide campaign against the U.S. How much time do we have left? Strategic Defense Initiative, threatening even to risk what Admiral Elmo Zumwalt warned the U.S. Senate during remains of the unity of the alliance should the Reagan admin­ testimony on Soviet arms control violations on March 28: istration continue pursuit of its stated intentions. The little 'The Soviets now have an overwhelming strategic offensive European "street theater" which Kissinger concocted with superiority over the U.S., a true first-strike potential so long Genscher was meant to provide credible arguments to enable feared by American strategists. The Soviets are now over 10 Senate Republican leaders like Charles Percy and Howard years ahead of the United States in strategic offensive capa­ Baker, who oppose the President's March 1983 program, to bilities . ...The Soviet Union is also 10 years ahead of the go and "counsel" the President that if he insists on the SDI, United States in anti-ballistic missile defensive capabilities. he will jeopardize the NATO alliance. The Soviets may, in just another year's time, be able to From within the "palace guard," Michael Deaver and defend over one-third of both their population and offensive James Baker were primed to "explain" this whole stage­ forces from U.S. retaliatory deterrent. The Soviets may also managed affair to the President.The rationalizations of "elec­ at any time launch the first laser antiballistic-missile battle tion-year exigencies" and the skillful manipulations of opin­ station into space, where they have long been superior in ion polls combined with the political opportunism of a man anti-satellite capabilities." who desires above all else to be re-elected, have produced Without mincing words, let us state what ought to be what amounts to a national-security calamity. obvious to those persons assigned the task of safeguarding Secretary of Defense Caspar Weinberger is at this time a the national security: Ronald Reagan has proven unfit tolea d lone voice in the administration, in combat against both a such a rallying of the United States. His political opportunism blinded and corrupt Congress and a Pentagon bureaucracy has rendered him morally unfitto withstand the pressures of scrambling to cut funding for the SDI to preserve funding for a corrupt Congress, a misinformed population, and a treason­ current operations' maintenance and personnel. He has been ous elite of oligarchical families which pulls the strings of betrayed by his President. both the corrupt legislative branch and the prostituted press. On one score there should be no doubt left: The single With the voice of the ailing and aged Dr. Teller virtually most decisive issue in the current world strategic crisis is drowned out, only Lyndon LaRouche remains of the three whether or not the United States will be able to rally itself original architects of what once was the "Reagan Doctrine" and prevent the Soviet Union from "stealing the march" and of March 23, 1983. Either the American people will be rallied establishing an unchallenged monopoly in strategic anti-mis- around him or Moscow will steal the march.

EIR April 24, 1984 Special Report 19 reconnaissance programs that are geared to meet the intelligence requirements for Soviet forces in war. In wartime, spetsnaz forces would operate far behind enemy lines for extended periods of time. They would conduct sabotage, reconnaissance and attacks on a wide variety of military and political targets ....

• Civil defense: The report points out that the Soviets > Pentagon documents have over 10 million tons of hardware stored in invulnerable bunkers and enough military equipment to carry out a 30- Sovietwar plans day war following a full nuclear exchange. The Washington Times has reported that the Soviets are also completing The Pentagon's annual review of the U.S.S.R. 's military construction of underground sea-level cavernsfor repair and capabilities, Soviet Military Power, was released April 2 in storage of Typhoon class ballistic-missile-carrying Washington. It reveals how the Soviets plan to fightand win submarines. a global military conflict, and underlines the dominant polit­ ical role played by the military in the Soviet Union today. The military in the Soviet state The report highlights the following aspects of Soviet war The Pentagon review describes in some detail the far­ planning: reaching role of the military in the Soviet state, confirming • Space: The Soviets are in the last phases of preparation EIR's extensive reports on this subject. Thus: for the launching of a large-scale manned space platform, a In Soviet society, military forces exist not as a capability which has been developed in tandem with exten­ ' separate institution, but rather as an inherent part or sive military preparations for carrying out "space wars." the Soviet system. One is just as likely to find a uni­ • Ballistic-missile defense (BMO): The Soviets have formed soldier in the offices of a research institute as deployed an extensive battle-management radar system ca­ in the barracks of a field unit. . . . pable of controlling a full point defense of the Moscow com­ The Soviet obsession with security has played a mand and control structures, and have coupled this with an central role in influencing the Party's approach to the operating anti-satellite ground-based laser capability now in development of the Soviet State and the evolution of testing/deployment phase at Sary Shagan. They also have its Armed Forces. From the time the Communists first been working since the 1970s on the deployment of space­ seized power, they have cultivated a special relation­ based particle-beam weapons, one of which will be tested in ship with the Armed Forces. M. V. Frunze, the Bol­ an anti-satellite mode in the early 1990s. shevik military leader who replaced Leon Trotsky in Although the timetable for the deployment of these sys­ 1925 as head of the Red Army, argued that the next tems in a full ABM mode is relegated by the Pentagon to the war could be won only through the "militarization of 1990s, this is the firsttime that these weapons systems have . the entire population." been presented as an integral part of the Soviet strategic The Great Patriotic War, as the Soviets call World arsenal in official Pentagon publications of this type. War II, bore out Frunze's predictions. The Soviets • Spetsnaz forces: The report contains a full review of mobilized the entire country behind the war effort. the background and nature of the spetsnaz special commando That undertaking left a mark on Soviet society that is forces, and their role in prewar sabotage/assassination oper­ evident to this day. The Party and the governmentuse ations. In addition, the review includes an analysis of the this to remind Soviet citizens of the sacrifices made KGB border guard units and their strength concentrations in and to emphasize the importance of military its assessment of Soviet troop strength. Both of these are a preparedness. radical departure from past Pentagon analyses. The report states: The report also documents the nature of the Soviet war­ winning strategy: The U.S.S.R. maintains a complement of special purpose forces, known by the Soviet acronym spets­ The Soviets perceive that any conflict between naz. These special purpose forces are controlled by themselves and the West could easily escalate to the the Main Intelligence Directorate (GRU) of the Soviet nuclear level. They also believe that territory can be General Staff and are trained to conduct a variety of held only with troops and that even on a nuclear bat­ sensitive missions, including covert action abroad. tlefield final victory could only be won by ground This latter mission was illustrated by their covert role, armies reaching and controlling their ultimate objec­ under KGB direction, in the December 1979 assas­ tives. Hence, Soviet doctrine calls for continuing con­ sination of Afghan President Hafizullah Amin .... ventional arms offensives during and after any nuclear During peacetime, the GRU carefully coordinates phase of a general war.

20 Special Report EIR April 24, 1984 We inberger fights fo r the Strategic Defense Initiative

Defense Secretary Caspar Weinberger, in a series of recent Weinberger: They certainly seem to think it's winnable. interviews, has vigorously defended the administration's They're working on, for example, are-firing capability-a Strategic Defense Initiative, and given a comprehensivepic­ second and third strike out of the same launchers. They have ture of his own view of Soviet strategic policy and of arms very large investments in civil defense, and in hardening their control. We publish first excerpts from his press conference missile silos, and in protecting their governmental centers April 10, announcing the publication of the 1984 edition of and their command-and-control centers, and things of that Soviet Military Power. kind that would indicate that what they're planning to do is to have the capability of having a first strike and trying to Q: Mr. Secretary, what message do you want this book to absorb the retaliatory strike, and strike again. give to members of Congress who continue to slash away at your defense budget? Q: The report says that the Soviets consider a pre-emptive Weinberger: ...We 've heard a great deal about whether strike the most favorable circumstance if it comes to nuclear our percentage of defense budget increase should be 3.5% or war-and they practice for that. 7% or what, and those aren't very relevant considerations Weinberger: That is correct. when you're faced with a [Soviet] build-up of this kind. That is not a one-year phenomenon, but has been going on for 22 Q: Do you think that's the real threat? or 23 years and shows no signs whatever of slackening in any Weinberger: I think that is certainly one of the threats, the material or any real sense. idea that they would make a first strike and do it without You can't decide that because you did 7% last year that wamfbg and without notification and perhaps without both­ it's all right for us to do 3% this year, or something of that ering to declare war. These are all of the things that we kind. You have to look at the needs and necessity. . . . This obviously hope are not going to happen, they are all of the book . . . has a great deal of comparative data, and we hope things that we hope we can prevent by our deterrent strength. that what seems to me to be the inevitable and unfortunate lesson will be drawn from it, and that is that we have to make, all of us, all the NATO allies and ourselves, all nations Q: But now the Soviets say, look at our [U.S.] cruise mis­ interested in preserving their freedom, have to make very siles, our nuclear-powered aircraft carriers, our two new large and what are clearly very unwelcome efforts, to regain generations of ICBMs , our new strategic bomber-we're just a sufficient degree of military strengthto be able to feel that, playing catch-up ball. with some confidence, we have deterrence. Deterrence, un­ Weinberger: That can only be believed by someone who fortunately, is not a static thing. It's a dynamic thing. It believes that the Korean airliner was shot down because it changes as the Soviet capabilities change, and they change was a spy ship with 269 men, women, and children spies very rapidly. . . . aboard. It's just not a credible kind of argument. . . .'l think it can be done' First strike a 'real threat' ABC television's "Nightline" program interviewed Weinberger was interviewed April 8 by David Brinkley Weinberger April on the report. 8 Soviet Military Power and other journalists on ABC's "This Week" program. Q: You say in the report that the Soviets recognize the grave consequences of nuclear war, but you've said publicly many Q: What is, in your opinion, the chance that a system like times that they think nuclear war is winnable. How do you this would work-a system that will knock down enemy reconcile that? missiles long before they reach us?

EIR April 24, 1984 Special Report 21 Weinberger: Dh, I think it can be done. I don't have any and number of their weapons, their civil defense prepara­ doubt about it, but we can't do it now. There are a lot of tions, the hardening of their targets--everything that they're things we can't do now or we thought we couldn't do when doing indicates that they think clearly that a nuclear war can we firststarted on them, including going to the Moon and all be fought and won, and we don 't. We have always said that the other things that we've done. I don't have any doubt that a nuclear war cannot be won and therefore must not be we can do it. What it takes, however, is a commitment, a fought .... resolve, and a recognition ofwhat an enormously betterworld it would be if we could do this. That's why I don't understand Q: You say that the [strategic defense] system may not ab­ why there's not just hesitancy, but strong opposition to even solutely work, although you say that's the goal. What if a thinking about it or trying to do it. If you could do it you few missiles get through? How many Americans die? would have . . . as the President has said, removed the threat Weinberger: I don't know how many die, but the important of these terrible weapons from the face of the earth. point is not to have to have any [die] at all when you have deterrence, and you're dealing with trying to stop that; and if Q: Isn't a lot of the objection based on the assumption that you have strategic defense, that's another means of trying to if we seem to be succeeding in this, some enemy might feel stop it. But if the Soviets get strategic defense and we don't, it necessary. to strike us before we get it up, in place, and it would be very much like a world in which the Soviets had deployed? a nuclear weapon and we did not. You can't allow the Soviet Weinberger: The same argument would apply to the fact Union with its offensive capabilities and its offensive world that the enemy sees us now regaining our military strength. strategy to proceed on a path like this with any safety at all. There's always going to be a risk, in fact, and that's the That's half the reason to do it. The other half is, it's a very whole essence of deterrence. With this system, you can pre­ noble objective in and of itself-if we can succeed in it-and serve the peace by eliminating the threat of these weapons, nobody knows that we can't .... which would certainly improve the world and give it a great deal more hope. It's a matter of whether it's better to destroy Q: Why not do it through arms control? people or destroy weapons. Well, the President we've elected Weinberger: You have a very definite example of why not is trying to destroy weapons, and I think that it's a very noble to do it through arms control. You have numerous treaties purpose and I am delighted that we are embarked on it. that the Soviets have signed and violated. You have an ABM treaty which was based on the idea that neither side would do Q: If you're delighted and if that is the moral thing to do, anything about their defense, and here the Soviets have been what are we doing sticking with the ABM treaty, which really working along vigorously trying to develop this kind of a formalized the United States' resolve to base our security and defense. So, if you're willing to trust the fate of the world our theory of deterrence on the vulnerability of our cititzens? and the United States to your hopes that maybe the Soviets Weinberger: I've never been a proponentof the ABM treaty. this time would be able to keep a treaty, well, frankly, I'm I've never been a proponent of the Mutually Assured De­ not, and the responsibilities I have don't permit me to do so. struction or the MAD theory-the idea that both sides stop I didn't say that we shouldn't try to get arms reduction. I doing anything about their defense and that if both sides were didn't say we shouldn't try to get a verifiable agreement. But tremendously vulnerable, everything would be all right. The I'm not talking about the kind of verification measures we real problem with that is, among other things, that the Soviets had before. I'm talking about better verification measures­ haven't adhered to the basic concept. They are doing a very measures that allow us into the Soviet Union to see if they're great deal to try to defend themselves and they have in place keeping their treaty. . . . the one system permitted by that treaty. But they are also, and have been now since 1967, working on this precise ini­ Q: Mr. Secretary, you said that you thought the situation tiative which the President thinks we should embark on, and might be that the Soviet Union developed a system of defense if they should get it first, it will be a very, very dangerous against missiles and we did not. Suppose we both wound up world .... with it, where would we be then? Weinberger: We'd be much better off. In fact, as the Pres­ The Soviet war-winning strategy ident said, we would be willing to cooperate with them. It's Q: Aren't you saying when you emphasize the Soviet defen­ good for us to have a firm, reliable defense against these sive measures that the Soviet Union is embarked on a war­ kinds of missiles. Then you would indeed have a situation in winning strategy? which it would be very clear that there would be no use for Weinberger: They do believe in war-winning strategy and nuclear weapons. That would not make an end to war, but it they are embarked on it. All of their doctrine, all of their would be a vast improvement if we could free ourselves of writing, the offensive nature of their weapons, the volume this terror that has been with us all these years. . . .

22 Special Report EIR April 24, 1984 Will the Soviet Union deploy an x-ray laser QY 19851 byRob ert Gallagher

Three and a half months after EIR forecast early deployment missile systems. He repeated the same at the Erice conference of a Soviet x-ray laser anti-ballistic missile device (EIR , Dec. on nuclear-weapons policy in. Italy in August. He then made 13, 1983), the popular aerospace industry magazine Aviation a surprise appearance in Washington in December alongside Week and Sp ace Technology reported in its April 2 issue that Sen. Edward Kennedy and astrologer Carl "Nuclear Winter" the Soviets have a serious development program at the Le­ Sagan to again denounce the Reagan initiative-but evaded bedev Physics Institute and the Kurchatov Institute of Atomic questions on the Soviet program . . Energy for a nuclear-pumped x-ray laser "similar in design to the device being developed in the V.S. by the Lawrence A top priority program Livermore Laboratory." The Soviets have made development of an x-ray laser a The much-touted V.S. "lead" in x-ray laser technology research priority of their Academy of Sciences for over a appears to have evaporated overnight. Could it be that an x­ decade. A. A. Rukhadze at the Lebedev Physics Institute in ray laser is one of the many new weapons systems that Central Moscow and Ya. B. Faynberg of the Physicotechnical Insti­ Intelligence Agency officials warned last fall the Soviets tute in Khar'kov have led scientists in this effort since the would deploy in 1984 or 1985? At that time, the officials early 1970s. A 1975 Rand Corporation report,"High Current stated at a press conference that the Soviets had more military Particle Beams: I. The WesternV.S.S .R. Research Groups," systems in research and development than at any time during noted: the 1960s or 1970s. They reported that in the first eight Both Rukhadze and Faynberg are concerned with months of 1983, there had been a "dramatic" increase in novel methods of pumping lasers emitting in the ul- investment and floor space in military-oriented machining industries on the order of 40% . The CIA forecast that this engineering activity would result in deployment of a series of new weapons systems of all types in 1984 and 1985. Aviation Week has sounded an alarm: "V. S. officialsadded that the Soviet V nion is at least 10 years ahead of the V. S. in some important areas of directed-energy weapons technology that can be applied to a layered ballistic missile defense capability. " These reports demolish arguments by the Vnion of Con­ cernedSci entists and others opposed to a V.S. ABM effort that the x-ray laser device is not feasible. Richard L. Garwin of IBM, for example, put forward this argument last April, using an article by Lenin Prize winner F. V. Bunk\n of the Lebedev Institute published in the Sovietlournal o/ Quantum Electronics . Bunkin is currently one of the coordinators of the successful Soviet x-ray laser program ! (EIR refuted Gar­ win's argument in our July 19, 1983 issue.) Other top Soviet nuclear physicists have hastened to back the arguments of Garwin et al. that an American beam-weap­ on program is a waste of effort. Yevgeny P. Velikhov, vice­ This directed-energyR&D site at the Sary Shaganproving president of the Soviet Academy of Sciences, signed a dec­ ground in the central U.S.S.R. could provide some anti-satellite laration in April 1983 denouncing President Reagan's March capabilitiestoday and possibly ABMprototype testing in the 23 policy for development of directed-energy antiballistic- fu ture.

EIR April 24, 1984 Special Report 23 traviolet portion of the spectrum. Rukhadze's tech­ community by surprise," and that one official "called the nique employs exploding wires [as does the Lawrence rapidly developed guidance capability 'scary,' adding that Livermore device-RLGl and is found to be superior the advance of technology also is showing up in a number of to conventional flash lamps in terms of delivered en­ other areas as well as fighteraircraft and antiballistic missile ergy and ultraviolet conversion efficiency. defense." Adaptive optics: One Soviet program has applied adap­ Rukhadze concentrated much of his team's work on tive optics to solve the problems of beam divergence and using relativistic electron beams to pump the lasing medium. breakup in propagation through the atmosphere, according Rand further reported: to a report in Aviation Week last December. Presidential science adviser George Keyworth announced last fall that According to Soviet statements, ultra-relativistic U.S. scientists had just solved this prQblem. The Soviet pro­ electron beams can convert 1 % of their energy into ' gram is developing a system for laser communication with x-ray beams whose power can reach one trillion watts submarines. The system is reportedlycomposed of a ground­ with a [beam] divergence of 1°. Injection of such high based blue-green laser and an orbiting mirror which directs power x-ray beams into dense gases [e.g., a zinc plas-, the beam down to submerged submarines. Bunkin is also ma-RLG] may produce stimulated x-ray emission heading up this program and has made trips to the Lebedev [i.e., lasing-RLG]. Institute field station at Feodosiya near Sevastopol on the Black Sea for tests. Bunkin's program is about five to ten At the same time that Rukhadze's group at Lebedev years ahead of the similar program managed by the Defense pursued such applications of directed-energy beams, Aca­ Advanced Research Projects Agency. DARPA does not even demician Velikhov led a group of scientists at the Kurchatov contemplate a date for orbiting a test mirror. Institute in development of nuclear explosive pumped sys­ Laser Optics: Two other Lebedev Institute scientists, tems to provide pulsed power for directed-energy beams Subariev and Faisulov, have solved a problem in laser optics and-it appears now-to provide energy for x-ray lasing. relevant to beam colimation, according to a Novosti release For this work, the Soviets developed huge spherical blast last month. The solution reportedly involves uses of a crys­ chambers capable of withstanding small nuclear blasts. U.S. talline substance as a mirror with time-varying properties. Air Force Gen. (ret.) George Keegan revealed in 1977 that (Both these developments and the U. S. advance in optics will such systems exist at Semipalatinsk, U.S.S.R. for driving be treated in a future report.) directed-energy devices and that nuclear debris emitted from Such developments are just a small piece of the picture the site indicates that testing began in the early-to-mid 1970s. and are either unclassified (such as the Subariev work) or A viation Week's report shows that the Soviets have done simply what has leaked out since the Soviets imposed rigid the predictable: they have combined the work of the Ruk­ classification following the Keegan disclosures in 1977. hadze and Velikhov groups to produce a nuclear-pumped The Soviet Academy of Sciences manages an extensive x-ray laser device. F. V. Bunkin at the Lebedev Institute is network of laboratories devoted to directed-energy technol­ coordinating work on the device and the Kurchatov team is ogy research in a wide range of areas from pulsed power providing "technical support" in the area of "nuclear-weap­ systems to beam-generation devices. One focus of Soviet ons plasma." This report is just the tip of the iceberg of researchers in all areas is miniaturization of all systems. As Soviet directed-energy weapons work. As they move more Rand wrote: and more programs into an engineering phase--where the existence of a program necessarily becomes known to many This goal [ionospheric sounding] , usually referred people and hence more difficult to keep secret-more and to together with the production of artificial auroras, more will become known in the West. requires the delivery of relatively large energies sup­ plied by electron accelerators aboard space vehicles. Other Soviet breakthroughs It appears as one reason for the evident Soviet stress The Soviets have made three other breakthroughs in tech­ on minimizing the size of electron beam accelerators nology required for an energy-beam defense. All are in areas for a given beam energy and for the theoretical work in which the United States supposedly held an "undisputed" on beams [propagation] in atmospheric gas. lead and in which the Soviets were presumed to be so far behind that they couldn't be expected to field a layered de­ Leonid Rudakov, Rukhadze, and others have empha­ fense system within a decade . . sized development of compact devices for generation of Computers: The Soviets have developed a computerized relativistic-electron beams, which have in tum been flown guidance system for a new generation of cruise missiles with on spacecraft supposedly for experiments in injection of an accuracy close to that claimed for the U.S. ground-launched beams into the ionosphere (ionospheric sounding). The same cruise missile. Aviation Week reported Jan. 2 that the devel­ device and mode of deployment could drive a space-based opment "has taken the Defense Dept. and the intelligence laser.

24 Special Report EIR April 24 , 1984 A White House report shows the Soviet advances in ASAT capabilities by Marsha Freeman -

Since President Reagan's Strategic Defense Initiative was sures SO far proposed to limit ASAT programs are acceptable launched one year ago, a group of MIT professors and liberal to the United States. Andropov's proposal for an ASAT mor­ Democrats which the New York Times calls a "shadow cabi­ atorium "appeared to be designed to block tests of the U.S. net" has tried to force the administration to sign yet another miniature vehicle ASAT interceptor," the report states, "while arms-control treaty with Moscow. The proposed agreement allowing the U.S.S.R. to maintain the world's only opera­ on the "militarization of space," firstsugge sted by Yuri An­ tional ASAT system." Yet the administration report holds out dropov, would halt the development of aU. S. anti-satellite to the arms-control"shadow cabinet" the prospectof an ASAT (ASAT) capability and ensure that the U.S. beam-weapons ban in the future , stressing that "the door is not closed .... defense program never went beyond the research and devel­ The active search for viable.arms-control opportunities in the opment stage. ASAT area is continuing." rn a report submitted to the Congress March 31, the The anti-AS AT appeasers who are suddenly concerned Reagan administration points to important developments in with the possibility that space might become the "battle­ the Soviet ASAT program which have produced an "opera­ ground of the future" have never once objected to the fact tional capability to destroy satellites" that the United States that the Soviets have violated the 1967 Peaceful Uses of Outer lacks. These developments--4)fficially denied by the Soviet Space Treaty by testing the capability to orbit offensive nu­ Union-plus the Soviet record of arms-control treaty viola­ clear warheads. Indeed, considering the record of Soviet tions, led the administration to argue that none of the mea- violations of already-signed arms control negotiations, it cer-

Moscow Ballistic Missile Defense

• Under ..Construe.tion

• • • Pushkino Phased-Array Radar

•

Moscow '\ • ABM Radar ..

• U"der Construction ABM .R adar

ABM 1B Comple. • ABM Silo Sites Under Construction • Roads

Galosh anti-ballistic missile interceptorsjittedon 64 surface launchers around Moscow are part of the op erational Soviet ASAT capability.

EIR April 24, 1984 Special Report 25 tainly is a moot point whether or not the treaty would be that the Soviets are continuing development of ground-based verifiable, since one can only assume the Soviets would cheat lasers for ASAT applications. In addition, we believe the on this treaty, as they have on every other treaty. Soviets are conducting research and development in the area of space-based laser ASAT systems." The ASAT gap The U.S. ASAT program consists of a miniature vehicle The White House's "Report to the Congress on U.S. (MY) 35-pound warhead mounted on a booster, which is Policy on ASAT Arms Control" was mandated by the Con­ carried aloft and launched from a modifiedF- 15 aircraft. The gress last year in the FY 1984 Department of Defense Appro­ warhead carries no explosives, but achieves its kill on impact priations Act, which made continued ASAT funding contin­ when it collides with its target. gent upon administration efforts at ASAT arms control. Unlike the Soviet ASAT, there is virtually no way to The report summarizes the relative state of the two na­ modify the existing U.S. design to take it to higher orbits. It tions' ASAT systems, and the current and future threat to can only be launched from special aircraft, while the Soviet U . S. militaryspace systems from continuing Soviet research ASAT can be launched by any ICBM booster. Since the U.S. and development. system does not obtain orbital velocity, it must make its hit Under the heading of "Soviet Threats to U. S. Satellites," on the first try, with no possible second chance. The Air the report states: "The current Soviet ASAT capabilities in­ Force has recently begun tests of the U.S. ASAT system, and clude an operational orbital interceptor system, ground-based it is estimated that it will take three more years of tests before test lasers with probable ASAT capabilities, and possibly, it is operational . the nuclear-armed Galosh ABM interceptors, and the tech­ According to the White House report, "The United States nological capability to conduct electronic warfare against has no plans to extend the altitude capability of the MY ASAT space systems .... system to place high-altitude satellites at risk. We are , how­ ''The orbital interceptor must go into approximately the ever, continuing to review ways in which U.S. ASAT capa­ same orbit as its target and close at a specificvelocity . There bilities could be improved. Directed-energy weapons tech­ have been more than a dozen tests of the interceptor system, nologies, including high-energy lasers have the potential for which we consider operational, including testing during a ASAT use. These technologies are in the research and devel­ Soviet strategic forces exercise in 1982." opment phase." The Soviet interceptor ASAT is launched on a conven­ tional ICBM booster rocket, and on its second Earthorbit it 'Deterrence' undermined catches up with its target. When it is within range of about a According to the Reagan report, "a fundamental purpose mile, it detonates its fragmentation warhead, showering the of defense and arms-control policies is to maintain and target with shrapnel traveling at a high velocity, knocking strengthen deterrence, both conventional and nuclear deter­ out the targeted satellite. The Soviets have successfully tested rence. ASAT limitations could, unfortunately, undermine this ASAT system against their own test satellites since 1976, deterrence in some instances"-which certainly understates and according to Soviet space expert James Oberg, the So­ the matter. viets now have fiveASAT launch pads. "Since the Soviet Union has an operational capability to The current generation of Soviet interceptor ASATs can destroy satellites while the United States does not, the current only reach an altitude of 1,000 miles, which would make situation is destabilizing . If, for example, during a crisis or U.S. low-orbiting reconnaissance satellites vulnerable, while conflict, the Soviet Union were to destroy a U.S. satellite, leaving militarycommunications and some navigational sat­ the U . S. would lack the capability to respond inkind to avoid ellites safe. escalating the conflict." In addition to simply using a more powerful booster to In evaluating Soviet initiatives-because indeed the ini­ take the ASAT interceptor to higher altitudes, "other tech­ tiatives for an ASAT treaty have come from the Soviets niques for accomplishing this objective may appear prefera­ themselves and the pro-appeasement Democrats-the report ble to the SoViets. For example, they could also use their questions the "possible motives behind the Soviet offer of a developing electronic warfare-capabilities against high-alti­ 'moratorium' " which it characterizes as "suspect." tude satellites." The White House report concludes that "no arrangements The Gal<'lsh ABM system is a nuclear antimissile defense or agreements beyond those already governingmilitary activ­ net around Moscow, with a range of several hundred miles. ities in outer space have been found to date that are judged to These anti-missile missiles, according to Oberg, could be be in the overall interest of the United States and its Allies." outfittedwith non-nuclear fragmentationwarheads and, with Considering the fact that the Soviets have refused to admit retargeting, could be used for ASAT missions. that they have an operational ASAT capability, it would be The report states that "continuing, or possible future, hard to believe that they would sign any treaty that would Soviet efforts that could produce ASAT systems include de­ interfere with their as-yet-unchallenged military supremacy velopment of directed-energy weapons. We have indications in space.

26 Special Report EIR April 24, 1984 Zumwalt, Va n Cleave score the U. S.S.R.'s arms treaty violations

In testimony befo re the Subcommittee on Defense of the Sen­ Summary of the military significance of the President's ate Committee on Appropriations on March 28, fo rmer White Report on Soviet arms-control violations: House defense adviser Dr. William R. Van Cleave and retired • large numbers of illegal missiles and illegal warheads; Adm. Elmo Zumwalt scored the Reagan administration fo r • about 20% of the Soviet ICBM warheads could be its fa ilure to act on Soviet violations of arms-control treaties protected by the illegal ABM radar; with the United States. In January President Reagan had • the Soviets have developed a huge advantage in ICBM reported to the Congress that the U.S.S.R. has violated six counterforce capabilities by developing new super lethal nu­ treaties in seven different ways. clear warheads; Soviet violations of the SALT I and II treaties, the Anti­ • the Soviets have lowered the nuclear threshold with Ballistic Missile (ABM) Treaty, the Test-Ban Treaty, and their BW/CW [biological and chemical warfare] offensive treaties dealing with chemical and biological warfare, have programs or increased their capability, undeterred, to initiate given strategic superiority to the Soviet military, the two strategic biological warfare; witnesses declared. • the Soviets have increased the risk of surprise attack We excerpt firstfr om Admiral Zumwalt's testimony. against NATO and their ability to achieve political victories by the use of illegal (improperly announced) military maneuvers .... The President has informed the Congress of a number of Soviet arms control treaty violations. Each ofthese violations A Soviet first-strike capability has important military significance. Collectively, they have The Soviets now have an overwhelming strategic offen­ contributed to a major shift in the strategic nuclear balance sive superiority over the U.S., a true "first strike" potential from one favorable to the U.S. into one unfavorable .... so long feared by American strategists. The Soviets are now [T]he Soviet violation of the SALT I ABM Treaty by over ten years ahead of the U.S. in strategic offensive capa­ building a huge new ABM battle-management radar deep in bilities. This Soviet first-strike capability grows ever more Siberia, has profound military significance. This radar is ominous each year, and its usefulness for Soviet political reportedly located near over 200 ICBMsilos in which MIRVed blackmailand intimidation is even more dangerously appar­ missiles are deployed. By my rough calculations, this radar ent. This Soviet first-strike capability is already deeply af­ is in position to provide battle-management coverage to over fecting the whole world's politics, because what they call the 20% of the Soviet ICBM warheads. The radar would, of "irrevocable" shift in the "correlation of forces" in Soviet course, have to be connected to smaller radars and to inter­ favor has made all the nations of the world ever more willing ceptor missiles, and these are in mass production for deploy­ to acquiesce in Soviet provocations. ment. If the Soviets can protect over 20% of their ICBM And now there are recent revelations from Defense De­ warheads from U.S. retaliation, this fact would significantly partmentofficials that the Soviet Union is also ten years ahead erode the U. S. deterrence capability. The Soviets would have of the United States in Anti-Ballistic Missile defensive ca­ a significantly less vulnerable first-strike ICBM force. The pabilities. The Soviets may, in just another year's time, be U.S. has completely deactivated its one allowed ABM fired able to defend over one-third of both their population and [sic] while the Soviet Union has been engaged in a series of offensive forces from the U.S. retaliatory deterrent. The So­ violations of the ABM Treaty. Overall, the U.S.S.R. has viets may also at any time launch the firstlaser anti-ballistic overwhelmingly reduced the ABM advantage the U.S. had missile battle station into space where they have long been at the time of the 1972 signing of the ABM Treaty. superior in anti-satellite capabilities.

EIR April 24, 1984 Special Report 27 Soviet strategic superiority results in part from their SALT its adversary, in the very same way that a similar subset led and other arms control violations, together with U.S. observ­ Britain to look the other way while Hitler was violating the ance of its arms control constraints and U.S. unwillingness Versailles Treaty. . . . to exercise its own right to withdraw from such agreements In order to demonstrate to the Soviet leaders that there on the basis of supreme national interest when Soviet cheat­ are penalties to them for arms control violations and to mo­ ing is detected. tivate them to cease in the future , I recommend that actions These Soviet offensive and defensive advantages threaten be taken as follows-in sequence as Soviet violations the credibility of the U.S. retaliatory deterrent, which has continue. preserved the world's peace since W orId War II. Ifthe So­ 1) Initiate programs which are allowed under arms con­ viets can threaten a devastating first strike, and then also trol agreements, making it clear that such actions are in re­ threaten to defend against a significant part of the U. S. retal­ sponse to Soviet violations. Such action would include: a iatory response, deterrence is gravely jeopardized. The U.S. development of defensive biological warfaresystems ; devel­ is not only vulnerable to a Soviet first strike, but even more opment of offensive and defensive chemical warfare systems; significantly, because of this vulnerability, we are increas­ increased R&D in ABM systems; reactivation of a modern­ ingly subject to Soviet attempts at intimidation through nu­ ized single ABM site; etc . clearb lackmail. 2) Initiate programs to match specificSoviet violations­ U.S. compliance with arms control agreements despite i.e., encryption of the telemetering of missile tests; devel­ Soviet violations has led to a process in which the Soviet opment of battle-management ABM radars; development of Union is able to add to the advantage it has traditionally had­ a second new ICBM tyPe; etc. outspending the U.S. for strategic nuclear systems-the ad­ vantage of being able unilaterally to advance in areas in which 3) Announce that the time is fast approaching when our the U.S. is unilaterally constrained. This in tum has contrib­ supreme national interests will requirethat the U.S. withdraw uted to a general weakening in the confidencethat Free WorId from the treaties and political commitments which prevent nations have in the U. S. and a weakening in our alliances. It us from redressing the consequences of Soviet cheating. has made more pronounced the typical peacetime disincli­ nation of democracies to face up to totalitarian threats . It has Reagan is doing 'nothing' produced a significant subset of our federal bureaucracy ded­ Dr. William Van Cleave, director of the Defense and icated to the mission of working against U. S. efforts to match Strategic Studies Program at the Universityof SouthernCal-

The receiver and transmitterof the large phased-array , early-warningand ballisticmissile target-tracking radar at Pechora. An identical radarin the Central USSR almost certainly violates the 1972 ABM Treaty.

28 Special Report EIR April 24, 1984 ifo rnia, headed the team which advised President Reagan on Scowcroft]: "Any kind of an agreement that we have with the defense issues during the 1980 presidential election cam­ Soviet Union is going to be in our interest."... paign and the transition fr om the Carter to the Reagan The role of educator must be taken by the President. The administrations. Reagan administration should confront Soviet violations with a strong public information program which emphasizes the Given the importance and potential political impact of Soviet attitude toward arms and arms control agreements and such a document [the administration's report on Soviet treaty the necessity for the U.S. to have a determined compliance violations], there has been a puzzling attempt to downplay it policy. The realities of arms control and of the Soviet threat by both the administration and the media. There has also should be clearly explained, and arms control fever cooled. been little discussion of how the United States should respond The administration should take · the violations report as an to Soviet noncompliance. Any effective U.S. response was opportunity to live up to its campaign promise of a new arms called into question only four days after the submission of control realism .... the report to Congress, when the President delivered a major The Soviet walkout from the START and INF talks is no speech on U. S. -Soviet relations that re-emphasized arms disaster. To the contrary. Given the arms control record, control and the need for arms negotiations. And the question Soviet unilateral suspension of arms control talks might even seems to have been laid to rest by the President's most im­ increase the safety of every American. Rather than consid­ mediate military action in the aftermathof the report-which ering new concessions to induce the Soviets to returnto the was to agree to a $57 billion cut in defense spending over the negotiating table, the U.S. should declare that it has now next three years .... suspended arms control negotiations with the Soviet Union I have the greatest admiration for President Reagan's until it ceases violating and defeating the purposes of existing decision to make public seven examples of Soviet arms con­ agreements and surrenders the unilateral advantages it has trol violations, and to say publicly what his predecessors achieved by such actions .... would not: that the Soviets have been violating all important The Soviet leadership must clearly understand that when­ arms control agreements. But what is this administration ever they violate a treaty some form of compensatory mea­ doing about it? Nothing. What is it doing to dissuade further sures will be taken by the West, for if there is any question Soviet noncompliance? Nothing. And what is it doing to as to the credibility of the response, we will instead only be correct the military advantages that the U.S.S.R. has been encouraging further Soviet noncompliance .... acquiring through noncompliance? Again, nothing .... [T]he United States government must insist that the So­ The reasons for the failure of arms control are clear. The viet Union cease all practices in violation of, or noncompli­ Soviets have subordinated all other considerations to the at­ ance with, existing agreements, and void itself of the fruit of tainment of nuclear superiority, and consequently have re­ those practices. This will require that the Soviets dismantle fused to agree to any significant constraint that might interfere the corresponding programs and systems such a� the Abala: with that goal. . . . The Soviets are willing to violate agree­ kovo radar, certain other ABM and air defense systems com­ ments outright in order to pursue military advantage .... ponenets, the SS-25 and SS-16, and all CW/BW facilities Despite the magnitude of this noncompliance, as well as and stocks. increasingly threatening Soviet foreign ventures, there con­ The U.S., otherwise, should announce itself free from tinues to predominate in the American political process an the obligations of the violated agreements. And the U.S. undaunted emphasis on arms control as the key to stabilizing should embark immediately on selected compensatory mili­ relations between the two superpowers. Contrary to the real­ tary programs .... ities or experience, domestic politics encourage the preem­ Such actions include accelerating the small ICBM pro­ inence of arms control. . . . gram immediately increasing the number of deployed Min­ The primacy of the arms control process to date has had uteman III missiles by 100, adding an ABM defense to Pea­ the deleterious effect of lowering the standards of strategic cekeeper (MX) and Minuteman deployments, upgrading air force survivability while simultaneously establishing itself defense systems feasible for ABM capabilities, dispersing as the "centerpiece" of U. S. defense planning and national the bomber force and constructing austere bases for addition­ security policy. As such, U.S. force modernization is por­ al dispersal, and testing nuclear warheads above 150 trayed as an unnecessary arms "build-up," instead of what it kilotons .... actually is: a reaction to threatening Soviet programs. If the President misses this opportunity and the arms What an agreement accomplishes, or does not accom­ control process is permitted to continue unabated, we may plish, in terms of national security has become far less im­ find ourselves in the not too distant future confronting the portant than merely reaching an agreement. It has led to a Soviet Union with little more than hope. Non-reaction to regrettable view expressed by a recent envoy of the White Soviet arms control violations will take on the character of House to Moscow on arms control [retired General Brent appeasement.

EIR April 24, 1984 Special Report 29 Kohl bows to Carrington , attacks U. S. beam policy

by SusanWe lsh

A blackmail operation against the Federal Republic of Ger­ status of the American effort, Womer turned his occasional many by Henry Kissinger and Britain's Lord Carringtonhas grumbling into an outright offensive against the U.S. policy. led the major Bonn parliamentary power-brokers to form a Behind the German shift is Peter, Lord Carrington, Henry "grand coalition" against the U.S. beam-weapon antiballis­ Kissinger's business partner and the newly-designated sec­ tic-missile defense program. The Bonn government, using retary general of NATO. A former senior British Foreign a the argument that the U.S. program will leave Europe in the Officeof ficial with close ties to Carrington and Kissinger told lurch, has in reality opted for the Kissinger-Carringtonpla n EIR four months ago, "Carrington will take care of the prob­ to decouple the United States from Western Europe. No lem of U.S. beam-weapons development when he takes over wonder that the government's shift has drawn enthusiastic as secretary general of NATO. The Weinberger viewpoint is supportfrom the left-wingopposition Social Democratic Par­ not the only viewpoint-there are programs and there are ty (see page 31). programs" (see EIR Dec. 20, 1983). Carrington's oft-repeat­ Chancellor Helmut Kohl announced in an "off-the-re­ ed attack on President Reagan's "megaphone diplomacy" cord" briefing to British journalists April 10 that his govern­ was meant as a warning to the United States that the British ment opposes the U.S. Strategic Defense Initiative. (Hitherto will break apart the Western alliance if Washington pushes Kohl has kept his public pronouncements on this controver­ "confrontation policies" (i.e., beam-weapons defense) too sial issue as vague as possible.) The London Guardian re­ far, the official said. ported on his remarks: "West Germany plans a European Kissinger spelled out the decoupling threat in a M.arch 5 campaign to dissuade Washington from going ahead with its essay in Time magazine, in which he threatened aU. S. troop 'Star Wars' killer-satellite programme, and to lay the foun­ withdrawal from Europe. dation for an autonomous European defense within NATO. Now Carrington and Kissinger are delivering on their Kohl has indicated that he fears the American anti-missile blackmail-with the help of a Soviet psychological-warfare programme could become irreversible if Mr. Reagan is re­ drive against WesternEurope that includes the largest global elected for a second term in November." naval maneuvers in history, harassment of West Berlin, and Kohl's defense minister, Manfred Womer, insisted in an the murder of a French military officer in East Germany. interview with the Hannoversche Allgemeine Zeitung April In France, these efforts have been successfully countered 7 that the U.S. program "could lead to a destabilization of by an organizing drive by the association France and J:Ier the East-West balance and a decoupling of Western Europe Army, which co-sponsored a conference in Paris March 23 from the U. S.A. and even to a split of the WesternAll iance." addressed by Lyndon H. LaRouche. There is increasing sup­ Womer had until recently maintained that beam-weapon de­ port in France for a European role in assisting the United fense was unfeasible, or at best "the music of the future." But States to develop a beam-weapons capability-a concept en­ when U. S. Defense Secretary Caspar Weinberger gave allied dorsed, for example, by oppositi.onlea der Jacques Chirac. In defense ministers in Turkey April 7 a detailed briefingon the Britain, however, "Churchillian" advocates of a beam policy

30 International EIR April 24, 1984 have been smashed, as Prime Minister Margaret Thatcher The same day, former West German chancellor Helmut has come under the thumb of Carrington in recent months. Schmidt addressed a University of Maryland meeting on "the . The German response has been to appease Carrington, need for a new strategy for NATO," supporting Henry Kis­ Kissinger, and the Soviets. The Social Democrats are threat­ singer's call for a NATO "reform." Schmidt demanded "in­ ening mass unrest if the government accepts the beam policy. tensified French-German military cooperation which would The Bonn defense ministry does not shape military policy, allow the United States to withdraw troops from Europe," but implements it-on orders from the foreign ministry, and voiced his "profound skepticism about the psychologi­ which, under Carrington's buddy Hans-Dietrich Genscher, cal, economic, and political consequences of a new armsrace functionsas an adjunct ofthe British Foreign Office. German in space," mocking "the optimistic we-can-do-itnation U.S.A. military figures who supported Weinberger have been si­ which tries to teach us Europeans lessons." lenced, through the "watergating" of Gen. Gunter Kiessling on charges of homosexuality in December. Although Kies­ April 4 sling was formally cleared of the accusations against him, Social Democratic Party (SPD) disarmament spokesman the scandal served to warn military figures of the fate that Karsten Voigt issued a statement in Bonn-almost identical could await them should they buck NATO's secretary general. to one by the -$oviet news agency TASS-that "in case the Despite the united front against beam defense from the United States goes for a policy of militarizing space, of plac­ leadership of West Germany's parliamentary parties, not all ing killer-satellites and other weapons into orbit, there will opposing voices have been stifled. The conservative daily be a storm of public protest which will make the protest Die Welt has been waging a campaign in defense of the U.S. against the counterarmament [stationing of U.S. Euromis­ policy. Scientificcorrespondent Adalbert Barwolf published siles] of last fall look like a mild breeze. " an article April 11 attacking the anti-beam stance by the Henry Kissinger told West German television that "it governmentand the Social Democrats: "Speculation by Ger­ was a mistake of the European governments to criticize me man politicians that Europe might be decoupled from Amer­ for my ideas [including his call for a U.S. troop withdrawal ica through these technologies is completely incomprehen­ from Europe--ed.] because I looked into the future . If the sible. Beam weapons in American hands are no danger for friends of NATO don't take up the debate, then the enemies world peace because the United States, as people in Bonn of NATO will do so. and this will lead toward neutralism. " should know, is not embarking on an expansionist policy. " "As long as defense is nuclear from the start, there is no sense in keeping the present number of troops in Europe ," Kissinger said. "What I said was no threat, but a reflectionof Documentation reality. " West German Chancellor Helmut Kohl, who was inter­ Since U.S. Defense Secretary Caspar Weinberger briefe d viewed on the same program, said that "the image of the NATO defense ministers on the U.S. Strategic Defense Initi­ alliance as an Atlantic Bridge does not fit,because a bridge ative in Cesme, Turkey, during the week of April I, German is founded on two equal pillars, and this is not the case today, controversy over the policy has mounted. We quote fromthe since Europe is the weaker pillar. I would say that Mr. Kis­ principal statements. singer was correct on that point." Kohl added that "Mr. Kissinger has delivered a series of excellent articles on stra­ April 3 tegic questions. " West German television carried a commentary by Brus­ sels correspondent Gunther Trampe, who said that "the April S American minister Weinberger will brief his European col­ Defense/disarmament spokesmen for the government co­ leagues on the new American Strategic Defense Initiative, alition parties issued statements calling upon the United States but MinisterWomer will voice the European skepticism about to negotiate with the Soviets a ban on space-based ABM that policy. As the minister said, the Europeans are concerned systems. The Free Democratic Party's Olaf Feldmann, a that these new anti-missile defense systems will neutralize member of parliament, said that "it seems to be senseless to the nuclear deterrence potentials, so that Europe will be con­ waste a lot of money on a project which is first of all very fronted with the immense superiority of the Soviet conven­ expensive and, second, might never really prove feasible." tional force. It is feared that conventional war might become For the Christian Democratic Union/Christian Social Union, possible again, if nuclear deterrence were neutralized." Volker Ruhe declared that "the costs of this new system Trampe added that "what is being discussed here is the might endanger NATO's planned conventional policy U. S. President Reagan presented in his famous speech improvements. " of March 23 of the past year, the so-called Star Wars speech; For the Bonn government as a whole, spokesman Peter but what is behind that policy is the development of a new Bohnisch said that while Reagan was right in blaming the anti-missile defense system based on bundled x-ray laser Soviets for violation of the 1972 ABM treaty through the weapons stationed in space." development of killer-satellites (which he said has been pur-

EllR April 24, 1984 International 31 sued by the U.S.S.R. since 1968, to Bonn's knowledge!) the new arms race which could hamper ongoing arms control "German government insists that alreadyin the research phase talks. " of these new systems, equal protection for the European allies must be guaranteed." April 10 Defense Minister Manfred Worner declared that he Adalbert Biirwolf, the military technology correspond­ was very skeptical about the new Strategic Defense Initiative ent for the daily Die Welt, denounced the European claim (SDI), because he was "still not convinced that the U.S.A. that the Strategic Defense Initiative would lead to a U.S. will not aim at making its own territory invulnerable to Soviet decoupling from Europe. "Speculation by German politi­ missiles with a system that does not protect Europe against cians that Europe might be decoupled from America through the short- and medium-range missiles threat." Womer pre­ these technologies is completely incomprehensible. Beam dicted that if the SDI were realized, there would be "even weapons in American hands are no danger for world peace more tensions between Europe and the U.S.A." because the United States, as people in Bonn should know, does not embark on an expansionist policy. An invulnerable April 7 America would be a good aid in case of danger. Europe, in Defense Minister Worner gave an interview to the Han­ tum, could insure that it is protected by these systems against noversche Allgemeine Zeitung, headlined "Womer worried the SS-20s by contributing financially and technologically to about new U. S. defense system-4lefense minister sees dan­ the development of these weapons." gers for the inner balance and unity of NATO." Said the Chancellor Helmut Kohl gave a confidential briefingto a paper: "In his view, such a development could lead to a group of British correspondents. The Guardian reported on destabilization of the East-West balance and to a decoupling the session April 11: of WesternEurope from the U.S.A. and even to a split of the "West Germany plans a European campaign to dissuade WesternAllia nce." Womer declared: "The Soviet Union has Washington from going ahead with its 'star wars' killer­ an advantage in the building of facilities for radar and high­ satellite programme, and to lay the foundation for an auton­ energy laser beams which have only one meaning: defense omous European defence within Nato. against ICBMs." He added that he approved of the U. S. R&D "[Kohll has indicated that he fears the American anti­ effort to cope with the U.S.S.R., but remained skeptical missile programme could become irreversible if Mr. Reagan because of the (allegedly) unsolved question of whether the is re-elected for a second term in November. United States would not try to use this shield to tum into a 'The West Germans fear a space defence programme "Fortress America." would protect only the U.S. It would uncouple Europe's Womer added that "the new U.S. concepts, because of security from America's and thereby undo the political ad­ their immense costs, endanger NATO's demands for a vantage the installation of cruise and Pershing II missiles was strengthening of conventional weaponry." meant to bestow. Christia� Social Union chief Franz-Josef Strauss mean­ "Dr. Alois Mertes, the State Secretary in the Foreign while addressed the security policy working group of the Ministry, said yesterday: . If both superpowers protect their Christian Social Union party in Munich, giving full support own sanctuaries, Europe will be more vulnerable. It is a to "Womer's critical remarks on the new U.S. policy," and classic case in which a united Europe could, and should, adding that once the United States had such space weapons, influencethe U. S. Europe would become "less important for the U.S.A." "The Government also feels that the 'star wars' project would promote the arms race when effortsare needed to slow April 9 it down." Horst Jungmann, a defense/disarmament spokesman The deputy SPD parliamentary fraction chairman, Horst for the Social Democratic parliamentary fraction, urged the Ehmke, meanwhile said in an interview on Deutschlandfunk Bonn governmentto resist the United States on the Strategic radio that "with the statements made in criticism of the U. S. Defense Initiative, because "the U.S.A. is trying to imple­ space weapons policy ...I see a new convergence of views ment this new policy under the very shady pretext of pointing across the parties on security policy." to a Soviet advantage in the fieldof space weapons." General (ret.) Gerd Schmuckle, former deputy chief April 11 commander of NATO/Europe under Alexander Haig, gave Die Welt's Bonn military correspondent Rudiger Mon­ an interview to Westdeutscher Rundfunkradio terming Bonn's iac wrote an editorial supporting the U.S. defense program: "official rejection of the new U.S. policy unconsidered, be­ "Bonn's reaction invites miscalculations ....The indica­ cause these new laser weapon systems would provide us with tions that the Soviet Union is also working full steam ahead a viable defense against Soviet missiles." on laser weapons cannot be overlooked. Therefore , it would Bonn governmentspoke sman Peter Boehnisch said in a be simply wrong to criticize the U.S. for striving to get the press conference that "our governmentremains skeptical about military capabilities in space which prevent it frombecoming the new U.S. initiative because our policy is to prevent any open to military-technological blackmail ."

32 International EIR April 24, 1984 Report for Central America, both the secret and published Central America aspects. The Soviet ambassador to the United Nations played with the Reagan humiliation on April 10, stating that perhaps his nation "would consider" sweeping the mines for Nicaragua. Contadora plan is President de la Madrid explained to millions of Mexicans on a radio and television broadcast the basis for the emergen­ the only way out cy negotiating activities Contadora has launched. Shakeup in Honduras by Robyn QUijano As de la Madrid started his tour, surprising and crucial support came from the foreign minister of Honduras, who Mexican President Miguel de la Madrid returned to Mexico declared that the removal of military chief Gen. Gustavo on April 7 after having met with the four presidents of the Alvarez, a Moonie cultist, would lead to greater cooperation Contadora countries. On April 8 the foreign ministers of these with Contadora. The ouster, � move understood as a blow nations-Mexico, Colombia, Venezuela, and Panama-met against the Kissingerian policy for the region, and another in emergency session declaring a new diplomatic offensive slap against Reagan, could affect the balance of forces in all vis-a-vis the United States, Cuba, and the Soviet Union to of Central America. counter the "grave deterioration" of the Central American Honduras is a base of U.S. military operations, and al­ crisis. though the new military head, Gen. Walter Lopez, will cer­ They attacked the U.S. mining of Nicargua's ports, and tainly continue collaboration with the United States, he may the "ever more manifest presence of foreign troops and ad­ draw the line on such matters as U. S. training of Salvadoran visers , as well as the increase in the arms buildup and the troops on Honduran soil. This alone would be a crucial vic­ proliferation of military actions and maneuvers." The Pana­ tory for Contadora. manian foreign minister, speaking for the group , directly "Contadora's objectives center on the re-establishment asked the United States and Cuba to "cease their growing of peace and support for the economic and social develop­ military presence" and thereby show with "actions" that they ment of the peoples of Central America," said President de "support the work of Contadora." la Madrid, laying out a policy the nationalists of Central Both Washington , D.C. and Havana have given lip-ser­ America cannot reject. vice support to Contadora's efforts. 'There is where we find the origins of the tensions in Contadora's peace plan is straightforward: "cessation of poverty , in lack of health care, in backwardness, and in hostilities and acts of war or preparations for war, control of systems of exploitation, and authoritarian regimes that have the arms race in the region, the pledge of all the nations of impeded liberty and democI;acy in Central America," said the region not to support subversion or destabilization of their the Mexican President. neighbors , the withdrawal of any foreign military forces." "Contadora offers its negotiations with a criterion equi­ distant from the poles of conflict," so that "Central American De la Madrid's message tensions do not constitute a pretext . . . for conflict between Miguel de la Madrid warned throughout his two-week the great powers," he said. tour to five Ibero-American nations-representing 75% of ". . . We also established a Committee for the Economic the population of the continent-that the Central American and Social Development of Central America [Cadesca] , as crisis must be resolved or every nation could confront war, an auxiliary mechanism of the Latin American Economic destabilization, and the disappearance "of the notion of Latin System [SELAl ." America itself. " The economic aid the continent is offering is not for De la Madrid warned of the "risks of regionalizing the "development" on the Hong Kong drugs-and-sweatshops Central American war, [whichl can affect us, the neighboring model, as prescribed by in the Kissinger Report. One of the nations, and continue to feed discord among countries of the firstaccords of the Mexican president's tour was the study of American continent. " a hydroelectric project that will stretch from Colombia to While Ibero-America organized itself to prevent Central Mexico, electrifying large sections of Central America which America from succumbing to the decade-old plan of Henry have remained in the most hideous backwardness. It will be Kissinger to spread depopulation wars and border conflicts "a great project with the participation of Mexican and Bra­ to every reach of the continent, implementation of the Kis­ zilian capital. . . . Colombia has enormous hydroelectric singer plan was proving very costly for Ronald Reagan. The waterfalls . . . and can thus generate electrical energy and Senate 's 82-to- 12 vote against the CIA's mining of Nicara­ transfer it along the entire Central American isthmus, aug­ guan ports was one in a series of debacles attributable to the menting the electrical capacity of our country," de la Madrid administration's acceptance of the Kissinger Commission informed the Mexican popUlation.

EIR April 24 , 1984 International 33 nadian collaboration with Argentina's nuclear program, as Argentina well as investment in Argentina's hydroelectric and other projects, were conditioned by "a previous agreement with the International Monetary Fund." Dante Caputo, the foreign minister ofArgentina recently in the United States as an unofficialnegotiator on the foreign debt, will be addressing the question of Argentina's advanced nuclear program in the context of his country's debt payment Nuclear program is problems. Caputo, closely linked to the Socialist Internation­ al, is holding private meetings with Henry Kissinger, David latest IMF target Rockefeller and other representatives of the U.S. Eastern Establishment during his trip. His breakfast tete-a-tete with 0 by Va lerie Rush Kissinger April 10 concludedwith Caputo praising the w uld­ be Rasputin of the White House as having "a profound and realistic appreciation of Central America." The president of Argentina warned on April 10 that unless the population closed ranks behind his government, Argen­ The secret memo ' tina was going to face a "Lebanization" process. The irony The drastic cuts in the nuclear program came just as of the warning is that it is a group of Kissinger agents within revelations of a treasonous secret deal the government was the governmentitself who are bent on taking Argentina apart. concocting with the International Monetary Fund broke out The three bastions of Argentina's national strength-the trade in the national press. While President Alfonsfn was bluster­ unions, the military, and the nuclear program-are their ing that he would "never put either the interests of the country targets . or the dignity of the nation in jeopardy," his specially ap­ The military and the trade unions have been under the pointed "debt ambassador," the anglophile Raul Prebisch, furious assault of Alfonsfn's "anti-corruption" campaigns was offering the Argentine economy wholesale to the IMF. since his administration began, campaigns dictated by Henry An infamous "secret memo," prepared by Argentine Am­ Kissinger and the InternationalMonetary Fund. It is now the bassador to Washington Garda del Solar for the eyes of tum of the nuclear program . Foreign Minister Caputo but leaked to La Prensa correspond­ Claiming financial woes, Alfonsfn's government the week ent Iglesias Rouco and published in that newspaper's April S of April 1 sliced more than $400 million out of its vanguard edition, has sorely embarrassed the Alfonsfn government, nuclear program, nearly one-third of the program's total which is already beset with a paralyzed economy, widespread budget. Vital reactor construction as well as basic research labor ferment and a powerful and very vocal opposition. The initiatives are on indefinite hold, fulfilling the pledge of Kis­ memo is a progress report on secret conversations held be­ singer intimate and former U.S. Ambassador to Argentina tween Prebisch, leading "Kissingerite" in Alfonsfn's cabinet, Harry Schlauderman (revealed to EIR by informed sources and IMF director Jacques de Larosiere. It details the "IMF who heard this asserted in private) to see Argentina's inde­ stabilization program" Prebisch was to have packaged for pendent nuclear capability terminated. popular consumption before it was so unexpectedly unveiled. Responding to the budget cuts, Peronist congressman Among the details of the program are 1) reduction of the Julio Cesar Araoz, also the vice-president of the Chamber of Argentine budget deficitfrom 18% to 6% of gross domestic Deputies energy commission, charged the existence of "in­ product, 2) increase in domestic interest rates, effectively ternational pressures directly linked to the payment of the ending Argentina's traditional subsidy system of "negative" foreign debt. ...The conditions come from NATO and the rates (that is, below the inflation rate), and 3) ending the international bankers who see in Argentina a dangerous com­ government-authorizedsyst em of retroactive wage hikes tied petitor in nuclear technology sales to Latin America." Argen­ to monthly cost-of-living indicators . tina, whose 30-year-old nuclear program with its recently Creditor nervousness about the success of the March 31 completed full-fuel cycle is the most advanced on the conti­ bailout package has not been calmed by incidents such as the nent and the third most advanced in the world, has in recent leaked Prebisch memo, which suggests that Alfonsfn-how­ years signed cooperation agreements or letters of such intent ever personally willing to accommodate the bankers-is not with at least four Ibero-American countries, including Brazil fully in control. If Alfonsfn cannot pull off a signed agree­ and Colombia. ment with the IMF within the next month, the Ibero-Ameri­ Pressures are coming from other sources as well. On can debtors who kicked in funds to rescue their neighbor in March 21, at the conclusion of a two-day official visit to distress are likely to convert their $300 million contribution Argentina, Canada's Deputy Vice-Minister on Latin Ameri­ into advance payments for Argentine exports . In that event, can Affairs , Claude Charland, declared that continued Ca- the rescue package will come tumbling down.

34 International EIR April 24 , 1984 be"deeply immoral-like a crime against history." The source Soviet Union of the statement was noted to be Rolling Stone magazine, a U.S. tabloid promoting narcotics.

Waiting for Kissinger Reagan's obeisances to Kissinger's crony Brent Scow­ Chernenko calls croft and his classification of the American Strategic Defense Initiative as a mere research project, were not unconditional fo r 'normality' enough for Moscow. Indeed, when Scowcroft was in Mos­ cow in March, bearing a message to Chemenko fromReagan , a la Kissinger he was permitted no audience to deliver it. Still, the Soviet press is putting out the word to be ready for Kissinger. Izvestia by Rachel Douglas in March touted his alleged "intellect" and suggested that Reagan might bring his old foe Kissinger back as Secretaryof State. The party daily Pravda on March Just before he was made head of state on April 11, Soviet 26 identified Kissinger as the man of the hour. Criticizing party chief Konstantin Chernenko waxed nostalgic for the Kissinger's March 5 Time magazine article for advocating a days when Henry Kissinger was U.S. Secretary of State. conventional buildup by NATO's European members, Pravda "Throughout the history of U.S.-Soviet relations we have also said the following: dealt with various administrations in Washington," Chernen­ "The masters of ceremonies are now trying to rectify the ko said in the April 9 issue of Pravda, "in those cases when situation" in NATO "by hastily incorporating couplets on realism and a responsible approach to relations with the So­ love of peace into their scenarios of local nuclear conflicts, viet Union were shown . . . matters proceeded normally. " StarWars, and 'crusades' against socialism, but people who are somewhat further removed from the couplet trade but Guarantor of a weak West who, on the whole, sympathize with the overall designs of "Normality," for Chernenko, is identified with the Kis­ the authors of the said scenarios can see that these additions singer era. A Soviet journalistin Europe spelled it out: "Kis­ are not enough and are seeking something a bit more substan­ singer is against the militarization of outer space and every tial. Former U.S. Secretary of State H. Kissinger is evidently

idea which meets the Soviet proposal [for a ban on space­ among the latter . . . . In describing the situation within NATO based weapons[ will be welcomed. For that reason, the So­ following the 'brilliant successes' of Reagan's policy, Kis­ viets would welcome Kissinger as the new Secretaryof State. " singer of course knows what he is talking about. Therefore , Kissinger, the Russians believe , is their best bet to be it is worth listening to him." guarantor of a weak West--collapsingeconomically and de­ ploying its forces according to Kissinger's scenarioof a NATO War maneuvers in which Western Europe is "decoupled" from the United While putting out tough words on the diplomatic circuit, States. Above all, the Soviets fear that the United States will the· Soviets continued a high level of combat exercises, top­ reinvigorate itself politically and economically through a crash ping off the huge global naval maneuvers they conducted at programto develop beam weaponsfor defense against ICBMs. the beginning of April. On April 7 and 8, the Soviet cruiser When Chernenko denounced the Reagan administration Leningrad led two other Soviet ships and a Cuban frigate on for having "no intention to reach any agreement to ban the maneuvers in the Caribbean, during which they approached militarization of outer space," and scoffed at "peace-loving the Louisiana coast to within 130 miles, according to U.S. rhetoric" from Washington, he meant that the Russians were officials. still not persuaded, despite President Reagan's recent defer­ In Europe, the Soviets stepped up provocative flights in ence to Kissinger, that the beam-weapons effort has been the vicinity of West Berlin, even after a protest by the United stopped. States, France, and Britain about Soviet MiG harassment of Not a day goes by without official Soviet media attention civilian flights to and from the city (see Report from Bonn, to the drive to stop beam-weapons development by the United page 41). . States. Pravda's senior scribbler Yuri Zhukov on April 9 Marshal A. Koldunov, the Air Defense chief, wrote in compared the idea of mounting a beam shield to Nazi pro­ Pravda that the demolition of KAL 7, like the famous U-2 paganda claims that the Air Force of the Third Reich could incident in 1960,demonstrated a "high level of readiness to prevent "a single bomb" from hitting Hitler's capital. The fulfill military duties." Soviet combat pilot I. Zhukov, iden­ government paperIzvestia outdid itself on April 6, with an tified in the West as the pilot who shot down the Korean article on "Washington's Star Sickness," solemnly citing as civilian plane, received a special award on the occasion of an authoritative source a comment that space weapons would the holiday.

EIR April 24, 1984 International 35 the recent official statements by those responsible for French political life, whether President Mitterrand, when he spoke of an armed satellite set into an appropriate orbit, or [mayor of Paris and head of the opposition RPR party] M. Jacques Chirac , when he alluded to the new protective weapons .... In Europe these weapons, commonly called beam weap­ ons, were firstheld up to ridicule ....They were treated as "Star Wars" and "science fiction." Later, there were denials: "Maybe, but they won't be ready for a half-century, therefore they have no interest for us!" And then the pernicious insin­ uations sowing doubt: "Might it not be an invention of the 'Western security KGB to make us neglect modernizationof the existing nucle­ ar arsenal and annihilate the material we have built up and demands real defense' send it to the junkheap?" Now, no one in our camp has ever put out the idea that right now we should change whatever the existing programs are ! The problem merely consists in The second national rally of the France-U.S.A . Association juxtaposing to these programs weapons developed to destroy was held in Paris on March 30 on the theme of "solidarity intercontinental missiles in their boast phase, that is to say, with the United States fo r the defense of libertyand peace." in the first minutes of their flight, and essentially in the ver­ In a much-app lauded speech, Marie-Madeleine Fourcade, tical phase of launching .... the president of the Action Committee of the Resistance and Several types of launchers are foreseen ....We know fo unding member of the C omite France et son Armee (France that the Americans prefer [to satellites placed in orbit] simple and Her Army Committee), retraced the heroic role of the rockets fired vertically at the last moment, which launch into French Resistance in the Allied operations in preparing fo r space-above the stratosphere-a kind of "porcupine" of Operation Overlord, June 6, 1944 . which each "quill" points toward an adversary missile or The participants were determined to reinfo rce ties in the toward a zone of space, in the case of a massive firing. Then fa ce of the Soviet threat. "Everything must be done to im­ the apparatus explodes and coherent bundles of x-ray lasers prove the indispensable 'coupling' between the strategic sys­ take off from each "quill" or "porcupine" and hit the enemy tem of the United States and the defense of Europe , " Mayor missiles with their deadly impact. . . . of Paris Jacques Chirac affi rmed in a message of support to France is not badly situated in this race ....Her scien­ the conference. tists and researchers already have a long experience with "What should we say about peace?" Beam-weapons de­ particle beams, lasers , plasma physics, and electromagnetic fe nse is an essential element of the "race to security," she waves. affi rmed. General Delaunay, fo rmer Chief of General Staff A bond of trust with our allies is thus imposed upon us. of the LandArmy, echoed her: "Concerning beam weapons, We hope that it will be established and developed as soon as it is possible that the Soviets are capable of a technological possible, for France can and must play its role in this race for breakthrough." This involves a domain, he specified, "such security .... as to completely change our militarystrateg y," and nuclear Germany can participate in this resurgence of the defen­ weapons must be rounded out bythese new defensive weapons. sive; while not being able to enter the "Atomic Club" because of treaties, she has in compensation full latitude to bring complete transformations to the art of war. These transfor­ In 1984, the survival of the Free World and that of the op­ mations mean that never again will anything be as it was pressed countries as well depends very much on the close before , hence a new phenomenon for present generations cooperation of Europe with the United States of America, to with respect to comlilonly accepted ideas . It is vital for them put the finishingtouches in the shortest term on a new strat­ to measure the immense consequences of this, as when, in egy ....Now the new strategy defined by President Reagan fOIDler times, General de Gaulle imperatively demanded that on March 23, 1983 brings us a breath of hope. For the first we commit ourselves to tank defense, and as my own net­ time after morethan 30 years, his firm declaration allows us work, in 1943, informed the English of the truth about the to speak of "mutually assured survival ," and no longer of Nazi secret weapons, the V-I and V-2, which could have "mutual destruction." blocked the victory of the [Normandy] landing .... France has been very slow to understand this historic [France and her European partners] must convince them­ appeal , and on behalf of myself and a handful of friends and selves that today, by exception, by chance, by miracle, de­ specialists who immediately adhered to this idea, I welcome fense is the key to our salvation.

36 International EIR April 24, 1984 such as the cuts in the steel industry of the Lorraine, are necessary . "In the past war took care of destroyingoutmoded industries," he said. "Wartook care of breaking the rigidity of labor, but now we must wage a waron ourselves."

Attacks on the United States The concluding speech by Gen. Pierre Gallois conveyed the essence of the proceedings. Gallois, whom well-informed French military sources say has been in the forefront of the Anti-beam fight is attacks and slanders against LaRouche and EIR , denounced the United States for "losing the armaments race" and for spread to Asia undermining Europe's own defense capability. Gallois's au­ thoritative source on U.S. political commitments? Former California governor Jerry "Fruitfly" Brown, who lost in his by Jean des Entommures bid for a Senate seat in 1982. Brown told the conference that U.S. taxpayers would oppose any tax increases needed to The International Institute of Geopolitics held a colloquium take thebeam program beyond discussion andR&D. Brown's in Paris April 6-8 on "The Challenge of the Pacific," to try to alternativeto beam weapons is "hard-headeddetente ." stop U. S. development of laser antiballistic-missile defense Brown's words proved, Gallois claimed, that "whatever by "proving" that this system will result in decoupling the the power of the U.S. might be, it cannot do everything.... United States from Japan and its other Asian allies as well as It took 20 years to build a successor to the B-52, twelve years from Western Europe . Participants were intended to be left for the MX, while the Russians have acquired modemweap­ with the conviction that aU. S. global retrenchment is inevi­ ons. It will be difficultfor the U.S. to add space defense­ table, and hence America's allies must fend for themselves­ though," he added, "such a project is unavoidable .... not through beam-weapon defense but by a conventional "The consequence will be that peripheral nations will not arms buildup, and not through economic development but by be protected. The U.S. nuclear umbrella would be neutral­ slashing their own basic industries and ushering in the "third ized ....Europe , like Japan, doesnot contribute sufficient­ industrial revolution." ly to its own security, but that is the fault of the . United The colloquium was held 1 0 days afterEIR and the Fusion States ....The U.S. disarmed Europe-it mocked France Energy Foundation (PEF) sponsored a conference in Parison about the fo rce de frappe [France's nuclear deterrent] . That the strategic importance of the U.S. beam-weapons .policy is the reason for Europe's reticence." for Europe, provoking the Soviet press into a seriesof prom­ Fran�ois de Rose, a member of the Aspen Institute and a inent articles denouncing the policy and EIR founder Lyndon French governmentofficial , said thatno one knew when and LaRouche, the leading U.S. proponent of beam develop­ if beam defense could be deployed, and that saturation with ment. And on March 19, private investors in Thailand decid­ offensive weapons could always overcome any defense. This ed to launch the Kra Canal there, a project promoted by EIR line was then taken up by British Member of Parliament and the PEF as a strategic and economic necessity for the Julian Amery, who began his speech by referringto what his Pacific and Indian Oceans' basin. "good friend Henry Kissinger had said in Time magazine The ostensible purpose of the International Institute of about the need for Europe to defend itself independently." Geopolitics meeting was to examine the strategic and eco­ Only a few spoke against the anti-beam frenzy. Through nomic implications of Pacific development for Europe and constant interruptions from the podium, physics professor the West. About 400 representatives of the military, finance, Maurice Felden made an impassioned advocacy of beam government, and the press were there from Japan, the Phil­ weapons, terming de Rose's speech humbug and calling for ippines, Korea, Malaysia, France, the United States, Great a Manhatttan Project-type crash program. Hans Graf Huyn, Britain, and Germany. defense spokesman for West Germany's Christian Social But economic development was hardly the issue under Union, while not mentioning beam weapons, warned that debate, as French Minister of Industry Laurent Fabius warned decoupling Europe fromthe United States would mean "the that the Japanese miracle might be nearing its end, as Japan's beginning of the end" for Westerndefense capabilities. And export markets collapsed and Asia's political and social frag­ Wataru Hiraizuni, deputy director of international affairs for ility increased, as shown by the Rangoon bombing and the the Japanese Liberal Democratic Party, described the ex­ collapse of the Philippines. Andre Glucksmann, a new rising traordinary level of Soviet military deployments in Asia and star in the right wing of the French social democracy, then the need to preserve the U.S.-Japan defense treaty in the face told the audience that deep cuts in France's industrial base, of Soviet imperialist designs on the region.

EIR April 24, 1984 International 37 What will the Europeans do now?" His intervention took place as Jesuit spokesmen were trying to convince the Italian military that the duty of the military is to surrender in order to prevent a massacre . This was the line presented March 30 by Father BartolomeoSorge , S.J., the editor of the Jesuit organ, Civiltii Cattolica, to a Macri : 'Kissinger conference of high-level army officers in the Institute for High Military Studies in the presence of the chief of the Army crazy, or a traitor' General Staff, Gen. Umberto Cappuzzo. "There no longer exists a differentiation between just and unjust war ," Sorge said, "given the existence of nuclear weapons. At this point by Cristina Fiocchi it is better to accept an offensive action than to react with the risk of provoking enormously greater damage. The only thing On April 6, General Giulio Macri, just back from a long tour we can do is to create a peace culture. The attainment of in the United States, held a well-attended press conference at peace cannot rely on technology and military strategy." the Universo Hotel in Rome. Introduced by secretary general While General Cappuzzo remained silent, many officers of the European Labor Party , Fiorella Operto, Macri, a pi­ were outraged. "I consider this line immoral , and as a Cath­ oneer in the fieldof military space technology, declared: "The olic I must say that, if this is the line of the Church, the first aim of my visit to the United States, and I hope I suc­ position of non-religious forces is much more moral . What ceeded in it, was to support the electoral campaign of Lyndon do you suggest we do if the enemy attacks us?" said one LaRouche. The second aim was to make the Americans hear general. Father Sorge replied: "I do not have an answer to from the voice of a European and an Italian the situation of this question so I will tell you I do not know , because I want extreme military weakness, operationally and strategically, to be sincere." of Europe and Italy. It was in the midst of this fight that General Macri held "Of course," the general underlined, "the most important his press conference. "Another reason for my visit to the task was to reinforce the links of the Atlantic Alliance, more United States was to push the President, the Congress, and necessary than ever before now in the moment in which a the American people to accept the military strategy deriving current led by the former Secretary of State, Henry A. Kis­ from the new defensive weapons based on the new principles singer, is taking over the White House. In 1972 Kissinger of physics and urged for the first time in Europe by myself, proposed to reduce by 25% the American forces in the world; in 1977 in an article for Rivista Aeronautica where I proposed he restated the same concept in his interview in Time maga­ the use of lasers as weapons. One year later, Mr. LaRouche zine on March 5. Who knows why 25%? For us military and his organization saw in lasers the best way to make people, this kind of statement is typical of a mentally sick strategic missiles obsolete ." man or of a traitor paid by the enemy!" Macriexplained why Then the general introduced an issue which, he said, Kissinger's proposal to give the military command of NATO people in the United States are not completely aware of: the to a European is just a big hoax. "Kissinger's proposal means Soviet threat against Europe both through "indirect strategy" depriving Europe of its nuclear deterrent." (destabilizing actions, dis information , and pollution of the Two days before , General Macri had been warmly ap­ internal front in every NATO country, for example with plauded by 200 Italian officers and military strategists at a terrorism) and through a direct surgical intervention called in conference of the Italian Society for the International Orga­ military terms "offensive action against limited objectives" nization (SIOI), a key NATO-connected think tank. The is­ like the one the Soviets are preparing against Norway, Den­ sue on the agenda was "the space strategy of the superpow­ mark, West Germany, Greek Thrace, and European Turkey . ers" and the chairman of the conference, Colonel Quinzio, "For the first time since the battle of Tsushima [in the Russo­ after explaining in general what beam weapons are , called on Japanese war-ed.] the four big Soviet military squads are the general, who was sitting in the audience, to pursue the in action at the same time. During my stay in the United subject. States, I underlined these dangers and I opposed the theories "It is time that Europeans wake up to the reality that beam of Kissinger: the so-called decoupling between the U. S. A weapons are about to become an accomplished fact," said and Europe. Where does this 'decoupling' come from? It Macri. "It is absolutely necessary that we in the West develop comes from the damned theory of Mutual Assured Destruc­ them, since we know that the Soviets already have them, and tion together with the MAD's corollary, Flexible Response. there is no point in being skeptical about it. I discussed this "In world military history, there was never a more stupid issue with the assistant to an undersecretary in the Pentagon corollary, stating that populations must become hostages of and with a general working in the Pentagon. The United military terror. This was the resultofthe ABM treaty of 1972, States is committed to go ahead with them. The question is: signed by Henry Kissinger. "

38 International EIR April 24, 1984 How the Nazis took Europe's northern flankby surprise in 1940 by Goran Haglund

One morning 44 years ago, on April 9, 1940, two paralyzed The secret behind the success of the Nazi blitzkrieg on nations were overrunby a lightning surprise invasion carried Europe's northernflank is simply the Scandinavians' refusal out by marginal forces of Hitler's Wehrmacht. Thus began to acknowledge the impending danger. what became for the neutral states of Denmark and Norway Immediately afterthe brief Polish campaign, in Septem­ five years of horrifying Nazi occupation and terror, amid a ber 1939, the High Command of the Wehrmacht looked for world conflagration fueled by the mental inertia and coward­ other options than an immediate attack against the West. ice among the Western Allies that prevented prompt counter-' Grand Admiral ErichRaeder 's High Command of the Navy, action at a time when the Nazi menace could still have been in particular, viewed Norway as the key to victory at sea, safely contained. based on the bitter lessons of the successful British naval Today , while timid Western officials talk and act as if blockade during World War I. Moreover, control of Nor­ competing to bring a Red Army surprise strike down upon way's coast was indispensable for securing shipments of their wholly unprepared nations, almost everyone looks the Swedish iron ore from the ice-free northern Norwegian port other way as the Kremlin pushes through one obvious mea­ of Narvik. sure of war preparation after another, ranging from forward Allied interest in Norway dated at least from September positioningof new missiles and omnipresent deployments of 1939, when the British Naval Minister, Winston Churchill, the Red Navy to psychological conditioning of the Soviet urged that Britain lay a minefield in Norwegian waters to military andpopulation . prevent freepassage of iron ore destined for the Third Reich. At the outset of World War II, the policy pursued by Later, duringthe 1939-40 Finnish-Soviet Winter War, Allied British Prime Minister Neville Chamberlain of Munich 1938 preperations were made to seize the Swedish ore fieldsunder fame was outdone, on a smaller scale , by the neutral countries the pretext of Allied assistance to Finland. of Denmark, Norway, and Sweden-the latter avoiding di­ On Jan. 23, 1940, Hitler ordered staff preparations for an rect occupation only by giving Hitler everything he wanted invasion of Norway to continue under his personal guidance, without putting up a fight. with the code name "Weser Exercise." On Feb. 22, Lt. Gen. Nikolaus von Falkenhorst was officially appointed the com­ Blindness in Scandinavia manding officerof the invasion forces, and the decision was The reason Denmark could be defeated, and Norway made to occupy Denmarkas well. surrender decisive controlling positions, within a few hours of Nazi aggression was not the awesome power of Hitler's Neutrality at any cost military machine, nor was it the armadas of spies and fifth Both Norwayand Denmark spent their last days and hours columnists allegedly making up a significant portion of the of peace ignoring the danger unfolding around them. Deter­ Danish and Norwegian populations. mined to maintain their neutrality at any cost, they were Although the Wehrmacht was vastly superior to the Dan­ indeed to pay a high price for their refusal to recognize the ish and Norwegian armedfo rces combined, the actual inva­ evidence of an impending knockout blow. For despite Hit­ sion forces were quite modest. And although traitors and Nazi ler's insistence on secrecy, leaks were abundant. By late collaborationists were a factor in running the five-year oc­ March, both Osl.o and Copenhagen were receiving word of cupation, as testifiedby the name of Norwegian Nazi leader what was to come. Vidkun Quisling becoming synonymous to the word "trai­ As pointed out in a 1974 book by Richard Petrow, The tor," indigenous fascists were kept in the dark about the Bitter Years, the Norwegian government without exception invasion until after the fact. discounted several memoranda filed by Norwegian officials

EIR April 24, 1984 International 39 in Berlin, reporting Wehrrnacht troop concentrations in Polish submarine sank the transport ship Rio de Janeiro on northernports and unusually heavy naval activity in the North the afternoon .of April 8. The survivors, Wehrmacht soldiers Sea and the Baltic. The reports concluded that Hitler must be in full combat dress, told their Norwegian rescuers that they preparing a strike north. were on their way to aid the Norwegians against the British. Denmark refused to believe even more detailed infor­ When hearing about the sinking, Grand Admiral Rae­ mation, originating with Maj. Gen. Hans Oster, chief assis­ der's naval staff assumed that the element of surprise had tant to Abwehr head Admiral Wilhelm Canaris. At the end now been lost, and that fierce resistance would meet the of March, the Dutch military attache in Berlin, Col. G. J. invasion force everywhere along the Norwegian coast. With­ Sas, was informed by Oster that Hitler was planning to invade in hours, however, it was clear that nobody in the Norwegian Denmark and Norway and possibly Sweden as well-infor­ leadership was prepared to draw the only possible conclusion mation immediately passed on to Copenhagen through the from the unmistakeable evidence at hand. Danish naval attache in Berlin, Captain Kj olsen. As the re­ Only at 1 a.m. on April 9 were orders issued to activate port met with total silence, an angry and amazed Kj olsen the mines at the mouth of the Oslo fj ord-too late, as Hitler's traveledhome to report in person and stress the reliability of warships had already entered the fj ord-and shortly thereaft­ the information. Arriving on April 4, five days before the er, Lt. Col. R. Roscher Nielsen, chief of the operations invasion, Kj olsen was summarily told that his information section of the Norwegian General Staff, was awakened and could not be correct. informed that fortresses guarding the entrance of the Oslo On the same day, another Danish intelligence officer, fj ord had been attacked. Yet the Norwegian governmentwas Major Hans Lunding, who ran an agent network in the Third still debating at 2:30 a.m. whether to order the mobilization Reich out of southern Jutland, reported Wehrmacht units of Norway's four reserve divisions. When they finally decid­ advancing toward the Danish border, and that he was forced ed to act, they set April II as mobilization day-two days to conclude that Denmark was about to be invaded. The 'after the attack! Danish government would not believe it. Also on that day, in front of the noses of the Danish The result of appeasement government, the battalion commander responsible for the As news of the sinking of Rio de Janeiro was discussed capture of Copenhagen, a Wehrmacht major, arrived in the at the royal table in Amalienborg Castle in Copenhagen, on Danish capital on a personal reconnaissance mission, dressed the evening of April 8, one guest suggested that Denmark too in civilian clothes and posing as a businessman. After care­ might be in danger. With a smile, King Christian X replied fully selecting a suitable landing area in the portdistrict , the that he didn't "really believe that," after which he set off, in major proceeded to the Citadel, a fortress overlooking the a "confident andhappy mood," according to a member of his harbor and the site of the Danish General Staffheadquarters , personal guard, to attend a performance of The Merry Wives where he was kindly given a guided tour by an unsuspecting a/ Windsor at the Royal Theater. Danish sergeant, knowledgeably pointing out the communi­ While the king enjoyed the play, a newspaper corre­ cations center, the barracks housing, the Guards Regiment, spondent phoned his chief editor in Copenhagen to report that and the two main gates of the fortress. he could hear the rumble of Hitler's tanks moving into posi­ tion. Major Lunding too could hear the preparations, but What the governments did could only wait for 4 a. m. The firstWehrmacht tanks crossed On April 8, the day before the invasion, Lunding filed an the border punctually at 4: 10 a.m., fiveminutes before Hit­ urgent message saying that a Danish agent had reported that ler's order of 4: 15 a.m. Wehrmacht divisions were scheduled to cross the border "at The rest was a foregone conclusion. Denmark's position four o'clock," the only ambiguity being whether that meant was hopeless, militarily but above all psychologically. Ter­ 4 p.m. on April 8 or 4 a.m. on April 9. When Hitler's tanks rified by the Third Reich, the country had pinned its hope for had not crossed the border by 4 p.m. on April 8, Lunding peace not on the strength of its armed forces and the tenacity again desperately called Copenhagen to reportthat they were of a mobilized citizenry , but on repeated solemn declarations certainly coming at four o'clock the following morning. of neutrality. As World War II started in September 1939, By now, theDanish General Staff could no longer ignore Denmark had begun to reduce its troop strength, cutting its the stream of warnings from its intelligence officers , and it ground forces by more than 50% in six months, in order not urgently requested permission to mobilize. The Danish cab­ to provoke Hitler. inet refused. Meeting token resistance or none at all, the invasion Afterrepeated phone calls from Danish Army officers, forces had the king surrender his country a few minutes the cabinet reluctantly authorized a state of alarm for southern before 6 a.m., and all resistance ended by 8 a.m., less than Jutland, but still refrained from a total mobilization-in fear four hours after the invasion began. During the same morning of provoking Hitler. hours, all of Norway's major ports were conquered, although At the same time, off the coast of southern Norway, a the occupation of the entire country took days, not hours .

40 International EIR April 24, 1984 Report from Bonn by George Gregory

Sonic booms over West Berlin Little noticed at the time, Warsaw The Warsaw Pact is habitually violating West Berlin air space in pact military aircrafthad forced an Air an expansion of militarymaneu vers. France civilian airliner to land in East Berlin about a week before the KAL 007atro city. Since the Soviet pilot who shot down the KAL 007 reportedly re­ ceived a medal of honor for the act, it is by no means far-fetched to ask whether some Soviet pilot may not be T he United States. France, and date failed to generate action by the on the hunt for his own medal of honor Britain , which are co-responsible for authorities against the Soviets. in the access corridors to Berlin. Berlin with the U.S. S.R. under agree­ The day before , a Pan American It was the French government,not ments dating from World War II and airliner was pursued and attacked by·a West Germany's, which issued an the 1972 Four-Power Agreement, Soviet jet fighter in a strictly military unequivocal statement that the re­ protested April 4 against the disrup­ manner, though no shots were fired. sponsibilities of the Western powers tion of civilian air traffic to and from Western experts who have been for control of the air corridors under West Berlin by Soviet and East Ger­ watching these "maneuvers" for about the Four-Power Agreement are "non­ man air maneuvers in the three East­ two weeks recall the incidents preced­ negotiable." The Soviet Union is aim­ West air corridors . ing past Berlin crises. In 1948, shortly ing new forms of military blackmail at The increased frequency of such before the famous Berlin Blockade, a Germany, with deployments on land maneuvers since December 1983 has British civilian airliner was smashed, and in the air, parallel to its colossal reached the point that civilia n airliners and 15 passengers killed. In 1952, an naval maneuvers. have been forced to divert their cours­ Air France airliner was shot at, four The Bonn governmenthas kept si­ es. Western military observers are passengers injured, and in 1953, a lent about the Berlin incidents because concerned; both Soviet and East Ger­ British military plane with six aboard the Federal Republic has no official man fighters and long-range Soviet was shot down. responsibility for the corridors of air bombers usually stationed in the So­ The most recent incidents of this transportation, but only for land trans­ viet Union, have been deployed on the sort occurred in February 1981, when port regulated between East Germany maneuvers , which are increasingly a British military transport plane had and the Federal Republic-so the ar­ difficultto tell from the "real thing." to land because of a Soviet bullet fired gument goes. But some suspect that The Soviet government's re­ into its tank, a nd in the early summer this argumentis only being used to set sponse to Western protests last week of 1983, a French civilian airliner was the stage for a round of "negotiations" was that such maneuvers are "perfect­ firedat , several weeks before the Ko­ betweenEast and West Germany, un­ ly normal ." Since they have become rean airliner was shot down. der which control of the air corridors "normal ," the Soviets blandly de­ Another Soviet challenge to the by the Four Powers would be replaced clared, the U.S.S.R. could no longer rights of the allied powers in Berlin by German-Germancontrol . guarantee the safety of civilian air­ occurred earlier in the week, when a A proxy for West German Foreign liners using the customary and agreed­ French soldier on patrol in the East Minister Hans-Dietrich Genscher, upon flightaltitude of 3,000 meters in German sector was murdered. At the Free Democrat Wolfgang Mischnik, the designated air corridors . same time, Soviet General Romanov, picked this occasion to say in an inter­ Recent violations of Berlin air­ chief of staff of the Soviet Air Defense view that the Federal Republic should space have extended to creating sonic Forces, declared that the Soviet drop its objections to the recognition booms over residential districts of Union's policy is to shoot down any of an "East German citizenship." This West Berlin. On April 6, about 10 MiG civilian aircraft which mistakenly vi­ is the kind of appeasement that contin­ fighter planes broke many windows olates Soviet or allied air space, as it ues to increase while the Soviets at­ and caused other damage to housing did last September with the shooting tempt to compel the United States, when they broke the sound barrier. down of the KAL 007 on its flight France, and Britain to abandon their Protests from the population have to toward South Korea. commitment to defend West Berlin.

EIR April 24, 1984 International 41 MotherRussia by Luba deorge

Soviet authorities push fascist movement per noted that Chernenkohas promot­ Why "deranged dissident" Gennadii Shimanov and his Russian ed the anti-Semitic diatribes of Lev Korneyev, the Soviet propagandist chauvinist almanac have not been suppressed. who, like Mnogaya Leta, writes that Jews are behind a complex of Ameri­ can military-industrial "death con­ cerns" threatening Mother Russia. The Chernenko-backed Korneyev and Red Star are in tune with Shima­ A publication called Mnogaya Leta, ienation, terror, consumerism," reign. nov, who echoes the deranged lies of spawned by the Russian Orthodox Hate propaganda identical with Hit­ Hitler, Himmler, and Alfred Rosen­ Church and the Soviet military to gen­ ler's Mein Kampf is typical for Shi­ berg: "The author of the Jewish-ma­ erate a mass Russian chauvinist anti­ manov: "America and theWest are the sonic-plutocratic conspiracy is the Semitic movement, is currentlyon the rotting victims of a terrible Jewish­ devil himself ....Judaism deceives rise in the Soviet Union. British intel­ masonic-plutocratic conspiracy." the Jewish people ....The most im- ligence sourcessay that MnogayaLeta, Why has a "deranged dissident" portant task of Zionism is to bring the which advocates a concordat between beenallowed to circulate his 200-page Jewish people and as much of human­ the Russian Orthodox Church (ROC) Mnogaya Leta almanacs ever since ity as possible under the power of the and the Soviet state "has the potential 1980? While other samizdat (self­ Anti-Christ. ..." to unite the Solzhenitsyns and the publishing) groups have been sup­ Dunlop calls Shimanov's concor­ Ogarkovs of Russia" and "lay the ba­ pressed, Shimanov has suffered nei­ dat thesis a "clear-cut neo-Josephite sis for a grass-roots Third Rome ther arrest nor harrassment. tendency," referring to Joseph (Sanin) movement." The answer is that Mnogaya Leta of Volokomansk Monastery, a late- Ogarkov is the chief of staff, lead­ has patrons in high places, such as the 15th-century Russian Orthodox er of the military junta now running top Soviet military figures--Ogarkov, chronicler who wrote against the "Ju­ the Soviet Union. The writer Alek­ Warsaw Pact commander Marshal daizer conspiracy" and was one of the sandt Solzhenitsyn, now in exile in Kulikov, and Armed Forces political architects of Moscow's claims, after Vermont, is a champion of the cult of commissar General Yepishev have the fall of Constantinople in 1453, to Russian "blood and soil." The doc­ been frequently named-who also eventual political and religious world trine they share is that of the Russian sponsorchauvinist associationslike the domination as "the Third Rome." Empire and Russian Orthodox Church, Rossiya Society for monument pres­ Anyone who dared bring "foreign that Moscow must inevitably rule as ervation and the "Russian Party," ideas" into Mother Russia was ana­ the "Third and Final Rome," capital spanning officialmagazin es, officers' themized as a "Judaizer" by Joseph of of a world empire. clubs, and other institutions. Volokomansk. This created extreme­ The author of the "concordat" idea Extremely anti-Semitic articles ly xenophobic rejection of "Western is Gennadii Shimanov, described by emerged last August in the military ideas" and bolstered the blood-and­ one expert at Keston College, Eng­ press, just when Yuri Andropov dis­ soil ideology on which the Russian land as a "deranged Soviet dissident, appeared and the military assumed pre­ Church-state regime rested. recently let out of a KGB-controlled eminence. The daily Red 8tar de­ No wonder Shimanov called his psychiatric ward." nounced "world Jewish capital. " almanac Mnogaya Leta ("Many John Dunlop, reviewing Shima­ The new, military-approved party Years")--an old Slavonic chant. To­ nov's thesis in the Keston College boss Konstantin Chernenko, a 1930s day's "Josephites," chanting along magazine, reports thatMnogaya Leta veteran ofthe ruthless NKVD security with Shimanov in praise of Mother warns that the "spiritual danger" to apparat, is himself known as an anti­ Russia's unique mission, are to be Mother Russia is not the Soviet re­ Semitic thug. The Spanish paper El found in the "Russian Party" and its gime, but ,the West, particularly the Diario has reported that Chernenko mass-circulation literary outlets­ United States. Shimanov's tracts ran the rehabilitation of Semyon Ig­ Molodaya Gvardiya, Aurora, Ogon­ characterize the United States as the natyev (recently deceased), the NKVD yok, Nash Sovremenik-and in the "New Babylon," where "disintegra­ author of the "Jewish Doctors' Plot" Rossiya Society with its 14 million tion of natural ties, moral vacuum, al- of Stalin's last months. The same pa- members. A big chorus indeed.

42 International EIR April 24, 1984 Report from New Delhi by Susan Maitra

Behind the separatist terror veloped close financial ties with var­ As violence spreads/romPun jab, Indian intelligence has/ailed ious ethnic terroristgroups in Europe. to identify its London gamemasters. In the early 1980s Chauhan came in contact with one Fran<;ois Genoud, a Swiss banker. Genoud belongs to the leftover Nazi intelligence apparatus, which includes the Second Divison of Admiral Canaris's Abwehr. Chauhan A five-year-old operation in the are the banned All-India Sikh Student also became a financial beneficiary of northwestern state of Punjab is send­ Federation (AISSF), the underground the London-based Indian-Muslim ing shockwaves throughout India. In extreme-left Naxalites, and funda­ Federation (IMF), which has deep recent weeks, blatant terrorist killings mentalist Sikhs based in Amritsar. connections to the Muslim Brother­ have taken more than 50 lives. High­ The only thing in common among hood. The federation, which has been level Sikh leaders searching for solu­ these groups is their determination to carrying out an aggressive campaign tions to the crisis, opposition leaders carve out their own territoryand shat­ against India for its alleged tortureof criticizing the extremist Sikhs, and in­ ter the union of India. The plan is nei­ Indian Muslims, found in "Khalistan" nocent bystanders watching the funer­ ther new, nor was it hatched within a card they were more than willing to al processions of one of the most re­ India. Although the angels of death play. Among the federation's finan­ cent victims have been shot at and, in and terrorwreak their havoc in India, ciers are Libyan dictator Qaddafi and many cases, killed. the financial and intellectual backing Ahmed Ben Bella's Islamic League of The rapid deterioration of the sit­ comes from abroad. Human Rights. uation in Punjab has put terrificpr es­ The key contact person in the In several visits to the United sure on the Indian government. Prime whole Khalistan affair is an old Sikh, States, Chauhan also got a sympathet­ Minister Indira Gandhi announced Jagjit Singh Chauhan, who was fi­ ic ear from the American Jewish Con­ April 7 a decision to curtail her planned nance minister in the Akali Dal-Ied gress and support from such diehard seven-day trip through North Africa cabinet in Punjab in the 1960s. Chau­ "anti-communists" as Sen. Jesse to three days, openly acknowledging han left Indiain 1967 and set up shop Helms (R-N.C.). It is not clear how that the Punjab crisis forced her deci­ in London, where he started demand­ much money Chauhan has obtained sion. Meanwhile, the terrorist acts ing an independent Sikh nation, from the United States. He has cer­ have incensed Hindus in states neigh­ "Khalistan." tainly recruited heavily from the nest boring Punjab, and riots between Sikhs British theoreticians such as Ne­ of N axalites located in Canada as well and Hindus have been periodically ville Maxwell and Gordon Lawrence, as in Europe. Some of them have been reported. who are eager to see India disinte­ smuggled through Nepal (via Kash­ It was thus alarming on April 4 grate, helpedChauhan contact wealthy mir) and some through Pakistan to when senior cabinet ministers were entrepreneurs with large investments carryout "hits" in Punjab. cited in India's daily "newspaper of in Africa. Chauhan started to tour ex­ Then there is the Pakistan factor. record" as having concluded that a tensively; he was seen, for instance, Hundreds of tons of surplus opium and "failure of intelligence" was the "root in Pakistan in 1971, during the liber­ thousands of guns sent to the Afghan cause" of the administration's inabil­ ation of Bangladesh, spreading ven­ rebels by the Israelis, Egyptians, and ity to curb the terrorism. The state­ om against India. He also succeeded Americans to fight the Soviet Union ment hardly enhances confidence in in getting financial contributions from in Afghanistan, found their way out of the government's capacity to resolve some wealthy Sikhs living in Canada, Pakistan to a ready market in Punjab. the Punjab problem quickly. the United States, and Western The poorly manned India-Pakistan Behind the terrorist acts which Europe. border is a supply point of guns and have spread beyond Punjab borders In this process Chauhan not only dope. and are taking lives in the state of Har­ established links with other exile While thePakistan governmenthas yana and the capital, New Delhi, is secessionist leaders from India, such not admitted support for the Khalis­ the secessionist Sikh group called as the Naga tribal leader Phizo, and tanis, it has nurturedthe JKLF, a Mus­ Khalistanis, headquartered in Lon­ the chiefs of the Jammu and Kashmir lim-Kashmiri expression of the group, don. Inside Punjab, the terrorist groups Liberation Fronts (JKLF); he also de- with ties to the militant Islamic world.

EIR April 24, 1984 International 43 . Attic Chronicle by Phocion

How near is the abyss? their masters' hand. Given the emerg­ The politicians in Athens ignore the threat posed by the ing strategic situation in the Near East and Europe, all they would need is an Communist Party at a time of internal crisis. informational briefing from their So­ viet superiors and they would be able to draw their own conclusions about their chances of success in any risky undertaking they might decide to em­ T he Hellenic Republic, as the post- tic "destabilization program" was dis­ bark upon. 1974 Greek statecalls itself, is about covered and certain of its aspects were Greece is already in the throes of to face the most critical challenge of brought up for discussion in the parlia­ a swelling strike wave and an explo­ its existencesince itsfo undingin 1827. ment. The destabilization is to be car­ sive economic crisis. Yet the political The challenge will be associated with riedout by the GreekCommunist Par­ mythologies perpetrated jointly by the the ongoing disintegration of United ty and its allied factions within the conservative President CaramaflIis and States positions of influencethrough­ ruling PASOK party of Prime Minis­ the socialist Prime Minister Papan­ out the Near East and Western Eu­ ter Andreas Papandreou. dreou prohibit any serious discussion rope, and the unraveling ofU .S. glob­ A study ofthe rapidity with which of the prospects presented here. To al strategic power. Moscow is moving to fillthe vacuum accuse the Greek Communist Partyof The American military collapse in in the Arab Middle East will provide harboring such potentialities in the Beirut was in its implications more insights into how fast Moscow is plan­ present fantasy-ridden atmosphere of dramatic and more catastrophic than ning to move in the Balkans. Mos­ political Athens would provoke howls the disorderly rout of American forces cow's pace might be accelerated, of protest and ridicule. from the rooftops of Saigon about a however, by two additional factors. For this there are personal reasons: decade ago. What followed that folly First, the rate at which Western Eu­ Constantine Caramanlis is an old man in Saigon was America's expulsion rope is disengaging from the United at the sunset of his life. He is nursing fromSouth Vietnam. What is now en­ States might speed up the timetable of the dream that he will be remembered suing is America's expUlsion from the Moscow's opportunities. Second, the by posterity for having founded a du­ entire Middle East. This is accom­ rapid disintegration of Greek political rable democratic system in a nation panied by the ongoing disintegration life may force Moscow to move faster which for 150 years knew nothing but of NATO as perHenry Kissinger's and than planned. a succession of monarchies, military Lord Carrington's perspective. To appreciate the latter point, one dictatorships, short-lived democratic As this is occurring: ought to take into account a few facts regimes, and foreign occupations. In • The Soviet Union has initiated about the Greek Communist Party. Its the past 10 years, Caramanlis led his installation of SS-20 intermediate­ entire top and middle-level leadership country in a stable republican system range ballistic missiles in neighboring is made up of veterans of the 1944-49 Which has functioned longer than any Bulgaria's Pirin Plain near the area Civil War who upon defeat fledto the previous regime. The enterprise was where the borders of Greece, Yugo­ Soviet Union, not to returnuntil 1975 . based on accepting the leaders of the slavia, and Bulgaria meet-assur­ They are all selected, trained, and ap­ Greek Communist Partyas one would ances of Bulgarian interest in a Balkan pointed by the Soviet KGB and many ordinary leftist politicians. "nuclear-free zone" notwithstanding. by the spetsnaz command of the GRU, In view of the country's past, Car­ • During the month of March, So­ the Main Intelligence Directorate of amanlis's scheme might have worked viet and Bulgarian military forces the Soviet General Staff. By temper­ to defuse political passions. However, conducted a series of Warsaw Pact ament, training, and past career, they as American political and military maneuvers code-named Soyuz 84 are hardened killers. power disintegrates in the region and whose objective was to practice a Their subservience to orders re­ globally, the old bloody monsters of massed land invasion of Greece and mains to be tested. Many of them par­ Balkan politics have now been awak­ Turkey in order to bring Warsaw Pact ticipated in decisions in the 1940s to ened. The deluded fools in Athens are forces to the Aegean Sea. launch a bloody civil war contrary to praying that it's only a bad dream. It • The existence of a secret domes- advice from Stalin in order to pre-empt is not.

44 International EIR April 24, 1984 Dateline Mexico by Josefina Menendez

Moscow joins attacks on labor including producers of key commod­ Soviet operatives and Kissinger's networks agree that the labor ities likemilk-to beginquarterly price "adjustments," whereas wages are movement must be split from the government. only adjusted every six months.. The government has also authorized "modifications" of fringe benefits for labor and has raised taxes. This has unleashed a tremendous While the Mexican Workers' Fed­ are now undertaking a concrete anal­ revolt within the unions, whose lead­ eration (CTM) is engaged in a life-or­ ysis of the positions of the different ership is demanding the immediate re­ death battle to prevent what CTM head groupings of the local bourgeoisie to peal of these measures, threatening Fidel Velazquez recently called a "re­ clarify which are closely linked with "hard measures" (i.e., strikes). actionary alliance" from taking power the multinational companies." Fidel Velazquez, the 83-year-old in Mexico, the trade union movement This communist attack on the head of the CTM, is hitting back at the has come under attack from a new Mexican revolution dovetails withthe political alliances arrayed against him. quarter: the Soviet "workers' state." line Henry Kissinger and the PAN are On April 9, delivering the keynote In the March issue of the Soviet pushing. Kissinger, at a meeting in speech at the statewide conference of monthly America Latina. Academi­ June 1983 in Houston sponsored by the Sinaloa Worket"s' Federation, Ve­ cian Andrei Sokolov of Lomonosov Georgetown University's Center for lazquez pledged that the Mexican la­ University blasts the Mexican labor Strategic and International Studies bor movement "is ready to paralyze movement for what he calls its "sur­ (CSIS), demanded that Mexico over­ the countrytotally" to prevent a PAN­ render" line, which he attributesto "the come its "nationalism" as a precondi­ led, PSUM-supported, "reactionary influence . . . of the official doctrine tion for U.S. aid-andthat it back U.S. alliance" from "coming to public of the Mexican revolution." military policy in Central America, power in Mexico." This "doctrine" is the intense re­ abandoning the Contadora group of The CTM, he said, "is on the right publican nationalism which has per­ Ibero-American nations. course, that of the Mexican meated Mexican political life since the William Buckley, Jr. , a Kissinger revolution. " revolution of 1910. A pillar of this associate, had demanded that Mexico The Central Committee of the "Mexican system" is the alliance of "crack the labor unions, with their CfMmeets April 14-15 to discuss their labor with the governmentand the rul­ monopolistic extortion." Writing in the next moves and an "action program" ing PRI party. Caracas Daily Journal of Aug. 3, for the next meeting of the PRl The point, says Sokolov, is "to en­ 1983, Buckley also called on Mexican leadership. sure that the organized workers' President Miguel de la Madrid to sell According to leaksin the press and movement adopts its own [program] , public enterprises like the state oil the testimonyof several observers, the allowing it to pass to the stage of co­ company Pemex and returnland to the CTM will give complete backing to ordinated mass actions" against the latifundists. Presidentde la Madrid in his organiz­ government. The drive by Moscow and the Kis­ ing for a united front of Ibero-Ameri­ The communist PSUM party has singerites to smash the Mexican rev­ can countries. The unions will also ask undergone a tum toward the policy olution could not possibly succeed the governmentfor "flexibility" in the Sokolov demands-no surprise, in without the help of the International economic program. view of, among other things, the visit Monetary Fund, whose austerity de­ But the CTM is also fighting for of the general secretary of the PSUM mands are creating the explosive pre­ direct political power. It will discuss to Moscow in October 1983. The conditions for the "mass actions" the in the National Assembly the strategy PSUM is working hand in hand with Soviets demand. to follow for the congressional elec­ the fascist National Action Party Under IMF guidelines, inflation of tionsscheduled to takeplace next year. (PAN) to topple the labor-PRl alliance. 16.8% far outdistanced wage increas­ Labor is seeking new congressional "Until the 1960s," Sokolov writes, es in the firstquarter of this year, and seats, and wants to reinforce its power "the PSUM endorsed the official idea the government added insult to injury by winning governorships in Sonora, of the Mexican revolution, but they by permitting the large producers- Nuevo Leon, and Estado de Mexico.

EIR April 24, 1984 International 45 International InteWgence

Sharon complained: "We should not have state that the two days of street fighting in M -19 guerrillas sabotage allowed Arafat trom leaving Tripoli Cameroon 's capital , Yaounde , were "war­ alive ....What was to be a victory for the fare in its naked horror," according to one truce in Colombia West was turned into a victory for the East." witness. Radio reports refer to the "human He also said that the greatest danger in folly" in the streets of Yaounde, with sol­ One week after the Colombian government the Iran-Iraq war is an Iraqi victory, "be­ diers ' bodies still lying in burned-out tanks of Belisario Betancur approved a ceasefire cause the Soviets will be tempted to support and bUildings. with the mass-based FARC guerrilla move­ Iran and we will have the Soviets on the The coup attempt was led by Col. Saleh ment at the end of March, the drug-running Gulf. Think of what would have happened Ibrahim on April 16, with a group from the terrorist M- 19 gang launched at least three if we had not destroyed Iraq's nuclear Palace Guard. French sources report there bloody assaults on military installations reactor." is already evidence of the hand of Libya's around the country in an attempt to shatter Jewish terrorist sects linked to Sharon , Qaddafi in this disaster. the truce and force the government into a including Rabbi Meir Kahane's Kach Party, hard-line retrenchment. Rabbi Levinger's Gush Emunim, and the The M- 19 leadership called a "clandes­ so-called Terror against Terror, were re­ Qaddafi executes 160 tine" press conference the firstweek of April cently caught in a series of bus strafings, officers after uprising to charge the FARC with betraying them by bombings and other terrorist acts. These not insisting on M- 19 inclusion in the truce groups are attempting todestroy the Al Aqsa Libyan dictator Muammar Qaddafi is re­ negotiations with the government. The M- mosque in Jerusalem, one of the most sacred ported to have put his forces on high alert 19 demanded that the governmentbegin im­ sites in Islam. and ordered a mobilization of terrorist hit mediate "peace negotiations" with them to The reasoningof Sharon, and his collab­ squads against his exiled opponents after a prove its good faith . The M- 19 is �e terror­ orator Rafi Eytan-the director of the Office military uprising against him on March 25 ist gang which held hostage an entire city in to Advise the Prime Ministeron the Warfare at a base near Benghazi . One hundred and retaliation for the Colombian government's against Terror-is that the destruction of that sixty Libyan military officers were said to spectacular raid last month against the larg­ Muslim shrine will insure an Islamic fun­ have been executed before or on April 7 est cocaine-refining laboratories in the world. damentalist rebellion in Saudi Arabia. (Qaddafi's annual "liquidation day" for po­ litical prisoners). Sharon makes power bid; Casualties heavy in According to unconfirmed reports from Arab sources, Abu Bakr Y. Jabr, the Libyan terrorism escalates Africanfighting chief of the armed forces, has been impli­ cated in the uprising and has been removed. Former Israeli Defense Minister Ariel Shar­ Heavy fighting broke out between forces of If true , this represents an important break in on , who advocates "Islamic fundamental­ the Marxist regime of Mozambiquan Presi­ the Qaddafi regime , because Jabr is a long­ ism" against moderate Arab states, won 42% dent Samora Machel and the South African­ time Qaddafidevotee and one of the original of the vote at the Herut party leadership con­ backed Mozambiquan National Resistance members of the Libyan Revolutionary vention April 13. Sharon's show of support in a southernprovince of Mozambique near Council from the 1969 coup. Jabr has criti­ in this contest with Israeli Prime Minister the South African border the second week cized Qaddafi's adventures in Uganda and Yitzhak Shamir places him to become the of April. Reports from Lisbon say that more recently in Chad. He was reportedly next Israeli Defense Minister if the Likud hundreds were killed in the fighting, which replaced by another Qaddafi loyalist, Mus­ coalition, which the Herut party leaqs, takes ended two days ago . The Mozambique gov­ taffa Karoubi, former intelligence chief. power in the July general elections . Shamir ernment claimed to have put down the re­ won 56% of the vote . bellion. This is the firstfighting between the Sharon spelled out his policies in a pro­ Soviet-backed Mozambique government and Japan op ening markets vocative interview in the Parisian magazine South African-backed forces since March Le Point the second week of April. Sharon 16, when the two neighbors agreed to halt before June summit used the typical camouflage of his ally, Hen­ further violence. ry Kissinger, pretending to be "anti-Soviet" Mozambique is already facing famine Japanese Prime Minister Yasuhiro Naka­ to justify policies that will only promote the threatening the lives of hundreds of thou­ sone told visiting Belgian Prime Minister spread of Soviet-controlled Islamic funda­ sands . The government has received weap­ WilfriedMartens April 12 that the Japanese mentalism in the region. Sharon backed the ons, but no food or economic aid, from its government is preparing tariff reductions, radical opponents of Yassir Arafat in the Soviet ally. financial liberalization, and other market­ Palestine Liberation Organization, and The attempted coup by Libyan-backed opening measures before the June London Khomeiniac Iran . rebels in Cameroon in early April cost over summit of the seven industrial democracies Asserting that the 1982 invasion of Le­ 2,000 lives, accordingto diplomatic sources. in June. Nakasone emphasized to Martens banon was to the benefit to the United States, Reports from the neighboring Ivory Coast that Japan has been making continuous ef-

46 International EIR April 24, 1984 Briefly

• ADALBERTO ROSAS, the Na­ tional Action Party 's (PAN) candi­ date for governor of Sonora, was forts to open up its markets to imports and directly under Yuri Andropov in the party found gUilty of misuse of power and reduce its trade surpluses with members of Central Committee department dealing with stealing official documents by Son­ the European Community and other indus­ Eastern Europe . ora's Supreme Court of Justice April trial nations. 13 and sentenced to spend two years Nakasone also said that Japan is consid­ and nine months in jail . Rosas stated ering a science-and-technology cooperation Is Egypt being set up that he will carry on his campaign as agreement that Belgium has requested. the PAN 's nominee for governorfrom Martens told Nakasone that he expects fo r war with Israel? his jail cell-despite legal complica­ the Soviet Union will take some action re­ tions. Mexican law forbids criminals gardingits stalled talks with the United States Since Egyptian President Hosni Mubarak from campaigning for office. on IRBM reduction, according to Jiji press. declared his readiness to resume ties with Nakasone stressed that Asia should not be the U.S.S.R. on April I, there has been a • J. R. JAYEWARDENE, presi­ sacrificed in any U.S.-Soviet agreement on rapid decline in the already strained rela­ dent of Sri Lanka, says that Tamil IRBM reduction in Europe . tions between Israel and Egypt. Syria and separatists backed by international hard-line Arab states, at the prompting of terrorist groups were trying to incite the Soviets, are demanding Egypt break the a "communist revolution" in Sri Lan­ Camp David accords with Israel. In Israel, Soviets callbeam weapons ka. On April 11, Tamil separatists the ruling Likud Party has denounced Mu­ carried out terrorist acts against a barak for deviating from the treaty . Nazi propaganda Buddhist temple in the northern town The tension is evidenced in a release of Jaffna, Sri Lanka, for the second Soviet Central Committee member and top censored by the Israeli military revealing time in two days. journalist Yuri Zhukov wrote his third arti­ that a civilian passenger bus was hijacked in cle in a row attacking the U.S. beam-weap­ Tel Aviv and driven to Rafah, a town near • PRINCE BANDAR Bin Sultan , ons policy in Pravda April 9 comparing the the Egyptian border. There are unconfirmed Saudi ambassador to the United idea of a defensive beam shield to Nazi pro­ reports that responsibility for the hijacking States, told the National Press Club paganda which claimed that Hitler's Luf­ was claimed from Damascus by the DFLP, in Washington April 10 that if the twaffe could prevent "any bomb" from hit­ the group that machine-gunned 50 Israelis United States continues to withhold ting Berlin. in Jerusalem earlier in April . arms from the Arabs, as it did recent­ Zhukov quoted liberally from recent At the same time, Israeli Defense Min­ ly with Jordan , then his country is statements by the Washington Post oppos­ ister Arens issued an uncharacteristically ready to buy Soviet arms. Prince Sul­ ing beam weapons, allowing that the Post harsh attack on Mubarak for Egypt's con­ tan, the son ofthe Saudi defense min­ was capable of coming to a "healthy struction of military facilities in the Sinai, a ister, is echoing the statement made conclusion. " violation of the Camp David accords. last month by Jordanian King Hus­ Syria, working with the Egyptian inter­ sein after the U. S. Congress refused nal opposition, is trying to draw Egypt back to approve a Reagan administration into the Arab front. Mubarak's top aide gave Iz vestia chief bid to sell sophisticated weapons to an unusual press conference the week of Jordan . gets promotion April 1, praising Syria and recalling the 1973 war between Egypt and Israel . THE MANILA Times lournal­ Lev Tolkunov , editor-in-chief of the Soviet • carried a front-page article from an government newspaper Izvestia , was one of EIR release denouncing the IMF for two new chairmen of the chambers of the A million Brazilians the destabilization of the Philippines Supreme Soviet named in Moscow April 12 . March 30. The article covered an EIR Tolkunov was named chairman of the Rus­ de monstrate fo r elections interview with Sen. John Melcher (D­ sian Council of the Union. Izvestia has con­ Mont.) in which he attacked the IMF's sistently opposed U.S. beam-weapons de­ At least 1 million Brazilians demonstrated policy: "The IMF wants to make it velopment and slandered EIR founder Lyn­ in the center of Rio de Janeiro for free elec­ [the Philippines] miserable ....The don H. LaRouche for his international role tions to choose President Figueiredo's suc­ Philippines do not have a tremendous in promoting beam defense . cessor this coming November. This was the debt-only $20 to $30 billion-yet Tolkunov's new position is primarily largest political rally ever held in Brazil , and they are being hamstrung by the symbolic, but it carries great political weight, "will go down in Brazil's history," said Rio's IMF ....Even the banks that would and is a highly unusual appointment for an GovernorLeonel Brizola. like to tum over their debt cannot do editor. Opposition party leader Rep . Ulisses so because of the IMF Reliable sources in Europe say that Guimaraes stated: "The people want direct restrictions . . . ." Tolkunov holds the rank of Major General presidential elections for their own survival , in the KGB . In the 1960s , Tolkunov worked to end hunger and get jobs."

EIR April 24, 1984 International 47 Reagan administration now rapidly falling apart

By Lyndon H. LaRouche, Jr.

The massive Republican congressional desertion from the administration's backing of Kissinger's brutish hostility to Reagan administration, on the issue of the administration's Mexico and to Mexico's co-sponsorship of the Contadora Central America policies, contains the essence of true Shak­ Group, a task force created by leading Caribbean nations for espearean tragedy. President Ronald Reagan's bid to assure the purpose of working to bring the building explosion in his re-election, by rotten deals with Henry A. Kissinger, now Central America under some degree of control . But for a threatens to be the rotten deals which bring down the Presi- massive intelligence failure in the White House itself, the ' dent's re-election effort. blunders which the administration has made throughout Cen­ The turning point in the President's policy for Central tral America would not have been possible. America came during September and October 1982. When For example, the Reagan administration has worked Mexico's President Jose L6pez Portillo slapped exchange openly to plunge Mexico into civil war. Not only has the controls on the Mexican economy, some of the President's State Department openly associated itself with the former political backers, themselves deeply involved in looting the pro-Nazi party of Mexico, the National Action Party (PAN), Mexican economy, shrieked: "Communists !" Henry A. Kis­ but the FBI has deployed massively into Mexico in support singer was given a quasi-officialmiss ion to Latin America­ of the PAN's efforts to destabilize Mexico. according to about nine months before the unveiling of the "Kissinger eyewitness reports by undercover agents of the Mexican gov­ Commission." Kissinger's old stooge from Mekong Delta ernmentmonit oring the activities of FBI operatives in north­ days in Vietnam, U.S. Ambassador to Honduras John Ne­ ern Mexico which we received from the highest-level Mexi­ groponte, was unleashed in Central America. President Rea­ can governmentsource s. Not only are top leaders ofthe PAN gan's backing of Kissinger and Negroponte on both Mexico Soviet KGB agents, as well as die hard former Nazi support­ policy and Central America policy, step by step built the trap ers, the Communist Party of Mexico (PSUM). has shared the into which the President's re-election hopes collapsed in the same political platform as the PAN, and is otherwise in a Senate, this week. close, "united front" alliance with the PAN against the Mex­ By about April 1983, about the time of the President's ican government. Not so incidentally, all of the PAN-con­ opportunistic endorsement of Brent Scowcroft's flanking at­ trolled political centers in northern Mexico (and Acapulco) tack on the President's own March 23, 1983 strategic policy are centers for routing drugs and terrorism into the United doctrine, the future doom of the Reagan administration was States. Clearly, there has been a colossal intelligence failure virtually irreversible policy. by the White House and State Department in the recent con­ The crux of the U.S. failures in Central America was the duct of policy toward Mexico.

48 National EIR April 24, 1984 True, the Soviet KGB is deeply involved in both Mexico in the governmentof Peru at that time. The plan for turning and Central America: substantially through Cuba and East Central America into a bloody mess was adjunct to the plan Germany, and indirectly through Qaddafiand through Mid­ for unleashing a "Second War of the Pacific." dle East terrorist organizations spun off from Hitler's old Kissinger's plans began to be put into operation by Kis­ Arab section of Amt VI of the Nazi Reichsicherheitshauptamt singer's successor at the National Security Council, Zbig­ (RSHA). However, the main route through which the KGB niew Brzezinski, during spring 1977. The destabilization of operates in Central America is an agreement struck between Nicaragua was the firsttar get. In the same process, the Carter the Soviet KGB and the Jesuit order during 1978, during a administration attempted to set up the strongest of the Central visit of Mexico's "red bishop," Mendez Arceo, and others American governments, Guatemala, for a process of de­ for a conference with Fidel Castro that year. The revolution stabilization by strangling the Guatemalan economy. Thus, in Nicaragua, for example, was almost entirely a project of the present destabilization of Central America would not the Jesuit "liberation theologists," who are openly allied with have been possible without Kissinger and such Kissinger the Soviet KGB since those 1978 meetings. Historically, the accomplices as Zbigniew Brzezinski and the predecessor to so-called "banana republics" of Central America have been the present "Kissinger Commission," the "Linowitz plantations of such spin offs of the old British East India Commission. " Company's operations as United Fruit (today, United Brands) Kissinger's continued role has played directly into the and W. R. Grace, etc., since the days of filibusterer William plans of the Soviet Union. Broadly, current Soviet policy is Walker. Since the region is at least nominally Catholic in to bog the United States down strategically in an eruption of traditional cultural matrix, the Jesuit order has supplied the wars and insurgencies in Latin America, while using Carib­ most important agents for firms such as United Brands con­ bean assets as aids for a Soviet thermonuclear-missile de­ trolling the area, with Loyola Institute in Louisiana a chief ployment against the United States in the Caribbean itself. training center for political agents of United Brands' secret­ Since Kissinger is a Soviet agent of influence, this apparent police-style operations. coincidence between Kissinger's and Soviet actions should It should be remembered that it was chieflyUnit ed Brands not be considered surprising to anyone. Already, we have and the Jesuits who trained and equipped Fidel Castro for his seen that Kissinger's successful luring of President Reagan operations in Cuba against Batista's government, with help into a quasi-Vietnam-War in Central America has played from some wealthy circles in Houston, Texas. massively into Soviet strategic plans, by drawing down forces The Jesuit control of covert political operations in the from the Pacific Seventh Fleet and from other theaters, to region has been complicated over the recent quarter-century build up the operations in Central America. by increasing activities of the Nazi international-linked "En­ It is not necessary to document here the deep and affec­ dangered Peoples" organization, by operations funded from tionate relationship which this writer and his colleagues have West Germany, and by sundry trouble-making missionaries develeped throughout leading circles in most of Ibero-Amer­ and anthropologists of assorted varieties, including much of ica since 1974, a relationship which was greatly extended by this riffraff deployed from the United States itself. The Soviet this writer's firm support for imposing the Monroe Doctrine KGB has found an increasingly fertile field for its trouble- and the Rio Treaty upon Britain in the Spring 1982 Malvinas . making in the Central American region, but the insurgency War. For this and other reasons, we were excellently situated into which the Soviets are intervening was created chieflyby to compose warningsand recommendations to the appropri­ powerful forces within the Atlantic Alliance, often with di­ ate channels of the U. S. governmentfrom the very beginning rect or implicit toleration and support from the U. S. Govern­ of the Reagan administration, and submitted this information ment itself. repeatedly. Insofar as we could determine, the intelligence The present insurgency in Central America was, in fact, upon which the Reagan administration has been shaping its projected during the period Kissinger was secretary of state Latin American policies, including Central American poli­ under Presidents Nixon and Ford . During that period, Kissin­ cies, has been either wildly disinformational, or simply the ger sponsored studies, such as the Einaudi Report, which usual nonsense of writing and editing field-intelligerice and projected the orchestration of general warfare throughout diplomatic reports to support the prevailing and ignorant South America, using the issue of Bolivia's access to the prejudices of those circles setting the "officialline" in Wash­ Pacific Ocean as the detonator for triggering wars among ington. The Reagan administration knows nothing of the Bolivia, Chile, and Peru, which would engulf most ot South people, history, and issues of Latin American life-it sees America, chain-reaction style, in what was then described as nothing but a reflectionof its own silly ideological prejudices, a "Second War of the Pacific." The writer and his colleagues and the career-minded bureaucrats up and down the line came directly afoul of Kissinger's efforts to implement such select their information and evaluations to please the prevail­ a general destabilization of South America during 1975, when ing prejudices of the White House or State Department. Kissinger acted personally against us and our personal friends This is not unique to the Reagan administration. President

EIR April 24. 1984 National 49 Kennedy mishandled the Berlin Wall crisis, and was caught off guard by the Cuba Missiles crisis, because the word was out that the White House did not wish to have any reports turnedin which warnedof the impending crisis in either case. President Johnson was "done in" in Vietnam by the deliberate faking of intelligence reports by Gen. Danny Graham and WANTED others, in the same way. For most of 25 years, no President has wished to be told the truth about any situation, if the truth contradicted prevailing policy or simply his own ignorant Investment opportunity ideological prejudices. Career-minded bureaucrats, up and down the line, compose and edit reports passed up the line to In data communication "support the current policy perception." technology The general line, in our experience, is: "Since we have decided against doing that, we don't wish to hear any facts Fiber optic mass com munications which might argue for our doing what we have decided not technology is one of the new high-speed to do." If the President has been sold on "giving the commies data communications methods available a bloody nose in Central America," the intelligence reports for the 90's. reaching higher levels and the briefingbooks will be edited in such a way as to "support the President's policy." If any A new medium-sized redundant fiber optic "doubters" object, they will be told that "we could have won communication concept is available on a joint the war in Vietnam," and that now we are going to prove that venture basis or under other suitable agreements. VOint in Central America. In short: When idiocy and bureauc­ racy are teamed up together around Washington, it is the APPLICADONS United States which usually suffers. Offshore Process .<:ontrol communication In such a way the former movie star, Ronald Reagan, Military applications secured at last the opportunity to star in a modem version of Nuclear power plant systems Hamlet, Shakespeare's with the President himself playing Local Area Networks (LANs) the part of the real-life Hamlet. "Practical men," especially Critical alarm transmissions those misguided by "campaign strategists," and misled by a conniving "palace guard," men otherwise less pleasantly de­ SYSTEM SIZE scribed as "political opportunists," are in every period of Up to 1,000 connections per real time unit crisis, the cause of the undoing of their state, and, sooner or later, of themselves. SYSTEM STATUS n It is sad to see Ronald Reaga pulled down by Kissinger Installations already in operation in this way. I thought, with all his faults, he was essentially References available on request a nice guy. I did as much as my resources permitted, to help him in a bipartisan way, and to protect him as well as I could. SPECIAL FEAT URE I regret nothing I have done to that purpose; indeed, among Radiation-induced error automatically rejected all prominent Democrats, I am the only figure I know who has earned the right to denounce his failures as I have been lately obliged to do. By his ideological blindness and his INQUIRIES political opportunism, the President has wrought a tragedy In the U.S. upon himself, but, more important, has caused a tragedy of F.W. Engdahl yet undetermined depth and scale for this precious, weakened c/o Executive Intel ligence Review republic of ours, the United States. 304 West 58th Street Yet, before leaving this matter, let us not gloat over the New York, New York 1001 9 misery Ronald Reagan's opportunism has brought upon him­ Phone: (212) 247-8820 ext. 745 self. There were many in Washington, in many departments In Europe of government, most emphatically including the Congress, MCS Comtech who contributed in an essential way to the making of this Strandvagen 7 tragedy. Until those departments, and the members of Con­ S-1 91 45 Stockholm gress, learn to throw overboard the "conventional" percep­ Sweden tion of "policy, methods and procedures," which has oper­ Telex: 14024 ated for the past 25 years or so, the mess will always be made Phone: (468) 7510195 worse.

50 National EIR April 24, 1984 Reagan bows to Dr. K. 's demand to stiflebea m defense program by Criton Zoakos

President Reagan met with Lt. Qen. Brent Scowcroft, a part­ an all-out financial collapse before election day and then ner in the consulting firmKissi nger Associates, Inc. , on April blame it all on the White House. It fact, Reagan was told to 9, and following the meeting announced that he has accepted watch thenext week's movement of interest rates if he didn't the Scowcroft Commission's restrictions on this nation's anti­ believe theirthreat. missile beam-weapons program, originally announced by With that, Kissinger and the Trilaterals sent Scowcroft Reagan himself on March 23, 1983. The political conditions into the White House to receive the President's surrender. agreed to by Mr. Reagan amount to a decision to abandon the Reagan surrendered, in the form of a unique statement in beam program, whatever the President might imagine him­ which he promisedthat the ballistic-missile defense policies self to be doing. he had announced back in March 23, 1983 will be downgrad­ Ronald Reagan said that he was acting on behalf of the ed to a mere"research project." Reagan's instrument of sur­ spirit of "bipartisanship" in foreign policy, a theme he has render further praised the Scowcroft Commission's earlier been increasingly extolling since his infamous speech on treacherous work and paid homage to the so-called "biparti­ April 6 at the Georgetown University's Center for Strategic san" foreign policy-making process, a term used to denote and International Studies. President Reagan also praised Henry Kissinger's dominance in both Democratic and Re­ General Scowcroft's earlier work in the Scowcroft Commis­ publican foreign policy-making circles. sion, whose formation as a "bipartisan" body early last year It will be recalled that Kissinger personally relaunched had set the stage for the comeback of Soviet agent of influence the fashion of "bipartisanship" with his March 5, 1984 Time Henry A. Kissinger into dominant position in foreign policy magazine articleand a series of subsequent speeches in which and security policy-makingcircles in Washington. he insisted that this year's presidential election process, no Kissinger's associate Scowcroft took the opportunity to matter who wins, must first and foremost produce a "bipar­ add insult to injury: Having just met the President, General tisan consensus" on foreign policy around two, principal Scowcroft addressed the White House press corps and em­ issues: abandonment of laser-beam anti-missile defense and phasized that U.S.-Soviet relations were at their worst level "decoupling" of Europefrom the United States. in years because of the Reagan White House's earlier poli­ No newspaperor other publication reported on Reagan's cies, before the President had fallen under the influence of "instrumentof surrender" statement which was made public Kissinger (and the Scowcroft Commission). Said Scowcroft: by the White House right afterScowcroft had finished brief­ "The political and psychological atmosphere between Mos­ ing the White House press corps. Senior officials attempted cow and Washington is as bad as it's been in my memory. to downplay the catastrophic significance of the event by The administration's rhetoric has certainly given the Soviets offering the opinion that "this will delay the beam program a negative view of the possibilities of dealing with this by about one year." Others preferred to remain silent, in administration. " preparationfor makingtheir peace with Dr. Kissinger. Given Furtheron, Scowcroftadded: "The Soviets are not inter­ the otherwise general press blackout on Reagan's "instru­ ested in doing anything which would contribute to the re­ ment of surrender," we print below excerpts of that docu­ election of the President. . . ." In fact, coming out of the ment, with emphasis added. previous week's Trilateral Commission conference and April 1 reception at the White House, Scowcroft was making a What the President said specificsort of allusion that Reagan will not be allowed to be "On Jan. 3, 1983 I established a bipartisan Commission re-elected unless he first agrees to name Kissinger his next to examine issues raised by the Congress concerning the Secretary of State either before or after the November elec­ strategicmodernization program, especially the Peacekeeper tion. This message from the Trilaterals was privately com­ (MX) missile. On April 19, 1983, I was very pleased to report municated to Reagan, who was also told that the banking to the Congress and the American people that the Commis­ interests behind the Commission have enough clout to trigger sion unanimously agreed on strategic force modernization

EIR April 24, 1984 National 51 recommendations, which I strongly endorsed. Secretary "The Commission recognizes the significanceof the 1972 Shultz, Secretary Weinberger, the Joint Chiefs of Staff, the Anti-Ballistic Missile Treatyand notes that research permit­ Director of the Arms Control and Disarmament Agency, and ted under the treaty is important to ascertain realistic tech­ the National Security Council also endorsed the recommen­ nological possibilities as well as to guard against Soviet ABM dations of the Commission. At that time, I affirmed my com­ breakout. The Commission also recommends extreme cau­ mitment to pursue ambitious arms-reduction negotiations as tion in proceeding to engineering development of an active an integral part of the package. strategic defense system. "Despite the range of views which existed in the past, the "Our proposed strategic defense initiative is limited to Congress joined us in supporting this bipartisan effort to technology research. The initiative also includes continued modernizeour strategic deterrent. This consensus was a ma­ study of strategic policy and arms control implications of jor accomplishment in our common effort to enhance national strategic defense concepts. The program is consistent with security. The willingness of all parties to re-examine their all treaty obligations and there is no conflict between our previous positions allowed us to end a decade of political initiative andthe recommendationsmade by the Commission. " paralysis over arms control and modernization. / am pleased to announce that 1, along with Secretary "Last week, the Commission issued its final report. The Shultz, Secretary Weinberger, the Joint Chiefs of Staff, the reportfoc uses on the arms control portion of its earlier rec­ Director of the Arms Control and Disarmament Agency, and ommendations. Once again, the Commission members and the National SecurityCouncil, strongly endorsethe Commis­ their counselors have performed a tough job extraordinarily sion'sfinal report. well. Again, we all owe this distinguished group of Ameri­ "I urge continuing support by the Congressand the Amer­ cans special thanks. ican people for this bipartisan consensus which unites us in "This final report reiterates the original recommenda­ our common objective of strengthening our national security tions, that is, an integrated strategicprogram consisting of an and moving toward significant reductions in nuclear arms." arms control structure with incentives to enhance stability at President Ronald Reagan has sold out to Henry Kissinger reduced levels of strategic arsenals ....In particular, arms the only major positive achievement of his tenure in office, control can make a substantial contribution to U. s. security his March 23, 1983 Anti-Ballistic Missile doctrine, in the by increasing strategic stability, allowing some types of de­ beliefthat by thus selling out, he would be re-elected Presi­ fense expenditures to be avoided, and offering a useful forum dent. His March 23 speech alone would have ensured Reagan for dialogue on strategic concepts and priorities .... an indelible place in history. Now he has been bypassed.

then agreed to lower it to 7.5%. Congressional sources believe that the highest increase which Congress is likely House committee cuts to approve by the time it finishes with the budget will be be 5%. defense by $19 billion Moreover, three leading "Moscow Democrats"­ Reps. Les Aspin of Wisconsin, Norm Dicks of Washing­ The knives are out, in more ways than one, since Ronald ton, and Albert Gore of Tennessee--have come up with Reagan signaled he would not fight for his Strategic De­ an "arms control" package aimed at destroying the u.S. fense Initiative by his endorsement of the Kissinger-con­ beam-weapons program: cocted "Scowcroft Commission Report"April 9. • A "limitation on testing of anti-satellite weapons" The House Armed Services Committee has cut a total and "advanced anti-satellite weapons" which prohibits any of $19.7 billion from the Reagan administration's pro­ funds being used "for the flight testing against an object posed 1985 defense budget. The committee slashed $8.8 in space of any anti-satellite weapon so long as the Soviet billion from the Pentagon's proposed $108-billion weap­ Union continues to observe its existing moratorium against ons budget by eliminating 10 of 40 MX missiles, 8 of 48 testing anti-satellite weapons in space." F- 15 fighters, 2 C-5 military transports, and 4 of 9 Lock­ • An order that the Defense Department put all the heed P-3 anti-submarine aircraft. The committee also cut related research programs together in a separate title in the the proposed military R&D budget by $3.4 billion with annual budget. This, says Aspin, will prevent specific the largest slash-$400milli on-taken from the Strategic components of the StrategicDefense InItiative "from get­ Defense Initiative. ting out of hand" in the future. The committee's action reduced the "real" growth rate • A "limitation on amounts for Strategic Defense In­ in military spending to a paltry 6%. The administration itiative." This limits the funding increases for sm to 5% had originally asked for a 13% real growth in defense, real growth in the FY 85 budget over FY 84.

52 National EIR April 24, 1984 Pennsylvania primary: a victory for the LaRouche Democrats

by Nancy Spannaus

In an election result that overturned all pollster projections Rouche's policies against Henry Kissinger and for the open­ and holds great promise for the patriotic faction of the Dem­ ing of the steel plants. As he said in a press conference on ocratic Party in the United States, Lyndon H. LaRouche, Jr. April 11, it is inconceivable that he could poll 31%, while polled 11-16% in the April 10 Democratic Party 'primary in. LaRouche was credited with less than 1 % of the local vote. Pennsylvania. Also winning significant support were schoolteacher The fact that this victory for the LaRouche campaign was Wanda Shirk of north-central Pennsylvania-37%; Sara not counted is due to the collusion between the combined Phleger of central Pennsylvania-46%; James McCaffrey of forces of the Mondale-Manatt political machine, Lane Kirk­ the Lancaster area-37%; and James Kane of westernPenn­ land's AFL-CIO, and possibly the Anti-Defamation League sylvania-18%. All of these candidates began their cam­ of B'Nai B'Rith. Tens of thousands of dollars poured into paigns as political unknowns. Their "claim to fame ," as ad­ Pennsylvania from Canada and New York banking circles to vertised in their campaign literature and in the media, was guarantee that no more than 1-2% of the LaRouche vote was their identificationwith LaRouche and his program. ever counted. If it were not for AFL-CIO control in major cities such as Thethree media-approved candidates were given the fol­ Scranton, Harrisburg, and Erie, it is possible that some of lowing totals of the state presidential primary vote: Walter these candidates would have won. Elder outpolled his oppo­ Mondale 46%, Gary Hart 34%, and Jesse Jackson 19%. nent in at least two counties of his district; Phleger, who Most ofthe LaRouche vote ended up in the Hart column. campaigned aggressively for the reopening of the Three Mile While the Mondale and Jackson official votes are credible Island nuclear plant, won outside Harrisburg; Shirk won han­ representations of their votes in the state, LaRouche cam­ dily in counties outside the tightly controlled Scranton area. paigners confirmed the fact that Gary Hart had no support Other LaRouche congressional candidates were the ob­ above the 20% level. Where did his extra 14% come from? ject of heavier attention by the Mondale-ADL machine, in LaRouche. particular in Philadelphia. Steve Douglas, who had polled Due to certain traps laid by the LaRouche campaign or­ 35% in Philadelphia during his 1982 race for governor, was ganization, that organization is in a position to show exten­ given 5%; Susan Bowen, running against the incumbent, sive fraud in Philadelphia, as well as by election judges in William Gray, a black advocate of Global 2000 depopula­ Pittsburgh. LaRouche has announced his intention to go into tion, in a largely black congressional district, drew 14%; court withthis evidence, and has called for the arrest of every Bernard Salera, who ran a no-holds-barred race in the 1st voting machine mechanic in the state. Congressional District, with a lot of publicity in the largely The magnitude of the LaRouche victory is also demon­ Italian-American Second Ward, was held to 3o/o---as the ADL stratedby the hefty vote recorded for the slate of 12 LaRouche had promised he would be. Salera got a certain amount of Democrats running for Congress across the state. The AFL­ satisfaction, however, out of the defeat of Lebanese-Ameri­ CIO/Mondale machine has little controlover the vote outside can mafioso Jimmy Tayoun, the master of venality who was the major cities, and therefore the fraud machine was unable challeQging incumbent Tom Foglietta. to prevent four LaRouche Democrats from winning 31-46% of the vote, as reported in local news media April 11. Crown­ ing a series of remarkable victories by the LaRouche-led Building a machine citizen-candidates movement in Florida, Masschusetts, and With a media campaign of less than $1 million, about 60 Illinois elections over the previous three weeks, the April 10 core organizers, and no cooperation whatsoever from the Pennsylvania showing was the best yet for the LaRouche powerfulop inionmakers at the national television networks, "patriotic Democrats" in federal races. the LaRouche campaign turnedthe state upside-down. George Elder, running in the congressional district around The LaRouche effort in Pennsylvania centered on two Erie, Pennsylvania, won an unofficial31 % of the vote against thrusts, one programmatic, the other organizational. Pro­ Manatt-endorsed (and well-financed) candidate Jim Young. grammatically, LaRouche concentrated a massive media Elder, who had received considerable press coverage in his campaign against the policies of Soviet agent-of-influence campaign, was primarily known for his support of La- Henry A. Kissinger, contrasting them with his own policies

EUR April 24, 1984 National 53 of economic development and beam-weapon defense. Or­ for democracyin the streets. However, let there be no rioting. ganizationally, LaRouche emphasized the creation of a citi­ Letthere be support for every legitimate strike which is about zen candidates' movement to take back political powerfrom to occur during the months just ahead ....If the voters are corruptpoliticia ns. denied the right to vote for a presidential candidate who will Not a nook or cranny of the state of Pennsylvania went give them economic justice, those voters have no alternative untouched by the LaRouche campaign's media and leaflet but to win those rights on the picket lines." bombardment. Over 5 million leafletswere distributed, half­ "Now, the working people, and masses of unemployed, hour television specials on Kissinger and steel were shown of this nation are being ruined, and this ruin is being caused twice in all crucial areas of the state, and virtuallyevery radio by the same evil monetary, economic, and tax policies which station in the state broadcast LaRouche statements . are also ruining our productive entrepreneurs and our fann­ The effect, combined with the indignant reactionof many ers. We must destroy that common enemy. Insofar as labor against the blatant illegal discrimination against LaRouche acts to weaken that enemy's power, labor is acting in the by the League of Women Voters in its debate April 5, was to interest of us all, and requires the supportfrom all among us propel hundreds into action. Over 700 citizens agreed to who care about this republic of ours. poll watch for the LaRouche campaign on election day. "Each and all of you must recognize that there is nothing good left in this nation of ours except a moral core of our 'I count your votes' people, probably still between 60 and 70% of us, who are It is this mass movement, particularly in labor, that essentially moral and patriots. All of the institutions of pow­ LaRouche addressed in a post-election statement issued for er, including the present leadership of the political parties, mass circulation in Pennsylvania April 11. LaRouche told are morally bankrupt. . . . The only force which could save the voters: "I count your vote, even if crooked state officials this nation from destruction is the majority of the people don't." themselves, people who are by and large working-people. He added: "Although I am against chaos and disruption "The problem, therefore, is how to rally those people on of orderly life of our repUblic, the massive vote fraud in behalf of their own vital interests. It is the lesson of history, Pennsylvania is merely one more sharp demonstration of the that a people can be rallied in this way only by mobilizing fact that the voters of the United States will never secure themselves for a serious fight. The fightaround which a fairly honest democracy at the ballot box until they win the battle large se€tion of our people are preparing to rally themselves

LaRouche Democrats' showing in U.S. congressional races Shaded areas:the congressional districtswhere the 12 races took place

George Elder 31%

James Kane Jack Smith 18% 5%

Bernard Salera 3%

Francis Cline Susan Bowen 13% 14%

Joseph Kapusnik 6%

54 National EIR April 24, 1984 is the imminent strike-wave, the kind of strike-wave which in the Monongahela Valley right outside Pittsburgh, stood. the insightful President Franklin Roosevelt understood was They loathed the de-industrializers and turncoatsin the "of­ the secret weapon throughaid of which he led this nation to ficial" Democratic machine. Two small but significant ral­ the mobilization to win World War II .... lies, which drew 50 to 100 unemployed workers, under­ "I ask all of those patriots among you who careabout the scoredthis expressed opinion. state of our republic, to be thoughtful and shrewd enough to LaRouche polls in these areas were running well into follow my reasoning on this point. Learn to think about the double-digit percentages. Not only was the AFL-CIO aware politics of crisis as General Patton led the Third Anny. If of this fact; so was the Eastern Establishment in New York there are not enough of you willing and able to think in this and Washington. The day before the primary, the national way, then you might as well kiss this country good-bye." newsweekly Newsweek ran a three-quarter-page article on the campaign entitled ''The LaRoucheDemocrats ." And the The Mondale traitors second major Philadelphiadaily , The Daily News. felt com­ The national press made a great deal of the "comeback" pelled to run a full editorial column denouncing "the candi­ of the Mondale-Kirkland machine in Pennsylvania. That date" as a conspiracynut . "comeback" means nothing more nor less than vote-buying In conversations with journalists, top Eastern Establish­ and thuggery. ment figure GeorgeBa ll had declaredthat "he could guaran­ Throughout the weeks the LaRouche campaign was ral­ tee" LaRouche would get no more than 1 % of the vote. Bob lying in Pennsylvania for reopening the steel plants, there McIntyre, a vice-president of the state AFL-CIO, allowed was no question where the majority of workers, particularly LaRouchefrom 2-5% "if it's a close Hart-Mondalerace ."

Counties won by LaRouche Democrats In four congressional districts

CHESTER" Counties won by LaRouche Democrats in four congressional districts

10th C.D. Wanda Shirk won 4 counties, and lost in Lackawanna County, where Scranton is located. 16th C.D. John McCaffrey won one county. and lost in Lancaster County where Lancaster is located. 17th C.D. 'tSara Phleger won 4 counties. and lost in Dauphin County, where Harrisburg is located. 21 st C.D. George Elder won 2 counties, and lost in Erie County, where Erie is located. "Only part of this county is in the candidate's C.D.

EIR April 24, 1984 National 55 Scientifichas -beens try to salvage their 'Sovietco nnection' by PaUl Gallagher

It was at the last Pugwash Conference, in late August 1983, race to date across the board, but fear the overall technolog­ when the "ice cold" Soviet representatives told their Western ical potential of aU.S. "crash program" for beam weapons, disarmament-lobby friends "get rid of Reagan and his ABM and demand that the United States abandon its efforts. beam weapons or we're finished with you." At that confer­ Anxious to prove their continued usefulness to their stem ence the hype was begun for the Union of Concerned Scien­ KGB interlocutors, and too wornout scientificallyto under­ tists (UCS) report which was to debunk antiballistic-missile stand beam-weapons engineering, the old "MAD"-men of beam weapons once and for all-which reporthas just come Pugwash have offered their services in marketing of this out to great fanfare in the national media. transparentSoviet big lie. With its "Space-Based Missile Defense" report,the UCS has produced for Henry Kissinger's entire Mutally Assured What is the UeS? Destruction (MAD) fraternity in the West, a desperate pro­ Despite its attributed image in the media, the UCS is no paganda offering to appease Soviet attacks on U.S.-NATO youthfulanti-nuclear insurgency among scientists. Quite the beam weapons development. The report is a pure fraud. contrary, its leadership is made up of the most cynical and The significance of this fraud lies in its attempt to claim hard-bitten veterans of the Presidential Science Advisory that engineering and deployment of global anti-missile de­ Panels, Defense Science Boards, and weapons planning fenses (as opposed to mere research) could not be going on, groups of the dismal 1957-1972 period, in which the MAD because it is not feasible. This big lie is preciselywhat Soviet doctrinewas set in stone. "scientific" propaganda says on this subject, many times Their opening chapter conveys the worldview of these every month in official Soviet media, to neutralize the clear. misanthropic spinsters of science: "We cannot regain safety and abundant evidence that development of a nationwide by cleverly sawing off the thin, dry branch [of assured de­ ABM system is going on-by the Soviet Union. struction] on which the Soviets are perched, for we cling to That evidence has been gathered by U.S. intelligence the same branch." agencies in hard formby "national technical means" (satellite In national scientific- laboratories across the United States, and related surveillance). It was presented to the National Europe, and Japan, it is the younger generation of scientists Security Council Nov. 30, producing "a freakout" according who are challenging these old MAD-men with development to one reliable report. It was reported to European defense of beam weapons, trying both to save the Western nations ministers Dec. 9 by Secretary Weinberger, and has not been fromdestruction and to reduce the imminent danger of nucle­ denied in public argument in Europe sinc�. The same evi­ . ar war. This younger generation inspired President Reagan's dence has been presented to three committees of Congress March 23, 1983 call for an anti-missile shield. during March-April 1984, and published in several military The UCS crowd, while unable to understand the plasma intelligence magazines as well as in EJR . As a fearful White physics and related breakthroughs implicit in beam weapons, House officialtold A viation Week last December, the Soviets does maintain powerful networks of inftuencein Washington calculate that during this election year, therewill be no U. S. and in the military with which to suppress anti-missile devel­ reaction even to the most abundant evidence of the Soviet opment on behalf of deals offered the Soviets by Henry Kis­ development of ABM defense. singer and Gen. Brent Scowcroft. Working in concert with The UCS is an important element in that calculation. the Heritage Foundation and Danny Graham's "High Fron­ The UCS's fraudulent report covers up an inexorable tier" (see below), the UCS has obstructed the unleashing of technology race under way between the U.S. and Soviet the younger plasma physics and laser scientists in the national Union, to develop ABM systems based on combining inter­ labs, and the launching of a new Manhattan Project for beam ceptor missile technologies with fundamentally new and rev­ defense. olutionary physical principles. The Soviets are winning this The authors list of Space-Based Missile Defense reveals

56 National EIR 'April 24, 1984 the characterofUCS leadership: Dr. Richard Garwin of IBM, development, in the mouth of "the U.S. scientific commu­ the "genius" behind the infamous electronic wall across the nity." This is the standard practice of the Pugwash Confer­ DMZ in Vietnam and one of Robert McNamara's top weap­ ences since their inception. ons planners and designers; Dr. Henry Kendall, leading Viet­ Each fraudulentSoviet line of attack upon the LaRouche­ nam-era weapons designer at MIT's Draper Laboratory until Reagan beam weapons doctrine is repeated without devia­ he suddenly "joined a student revolt" against that lab in 1969; tion. Beam weapons would "augment the emerging U.S. Peter Clausen, former CIA policy analyst and "senior arms . capacity to destroy Soviet missiles in their silos, to give the analyst"; Adm. Noel Gaylor, former director of the National U. S. a first strike capability." (The Soviets have a current Security Agency and a man who spent over a decade planning such anti-silo capacity, and a rapidly emerging first-strike naval uses of tactical . nuclear weapons; MAD-era "arms­ capability.) Beam weapons development "constitutes aU. S. control negotiators" Ashton Carter, Raymond Garthoff, and rebuffto Soviet overtures to negotiate constraints on ASAT KurtGottfri ed; and Dr. Hans Bethe, who in the 1930s denied weapons." This Soviet "overture" was suggested to Andro­ the possibility of high-energy particle accelerators, in the pov by Dr. Garwin himself, according to leading Soviet 1950s of thermonuclear weapons, in the 1960s of concealed scientist Y. P. Velikhov, and is a complete fraud which underground weapons tests, and in the 1970s of beam ignores any constraints on the tested Soviet ASAT system. weapons. "Our allies in Europe would not be protected by an American ABM system," and "Europeanswould hold the U.S. respon­ 'Provocative doctrines' sible for exacerbating East-West tensions." These are , of This congress of hard cases claims that beam weapons course, the operating propaganda lines of the East German­ are"a defense based on untried technologies and provocative and Libyan-financedGreen peace movement in Europe, and doctrines [i.e., assured survival]. The real-life problems of are simple political falsehoods=.The Reagan-Weinberger pro­ missile defense," they continue, "have been studied inten­ posal, as amplifieddirectly to European political and military sively by the U.S. defense establishment [i.e., by them] for circles by LaRouche's associates, places an equally high a quarter of a century, and some of the authors of this report priority and a shorter timetable on the defense of Europe have contributed to many phases of this effort. These inves­ against attack by Soviet SS-20s and shorter-range nuclear tigations have made it clear that a total missile defense must missiles. overcome a number of daunting obstacles set by immutable laws of nature and basic scientificprinci ples. . . . The laws ues and High Frontier of natureset limits on what humans can do. Nevertheless, it The only ABM proposal which would ieave Europe out is true that the advances scored by science and technology in in the cold, even if it worked, is Gen. Danny Graham's High our own time have been remarkable, and often unpredictable. Frontier proposal to use 25�year old technologies for "space But none of these violated firmly established laws of nature. trucks" carrying "kinetic kill vehicles" to destroy ICBM's. "What are these immutable laws of nature and basic sci­ Not so surprisingly, this gets the endorsement of the UCS: entific principles? At this point we shall only give some of "Such kill vehicles ...have several advantages vis-a-vis the most important examples. First, the earth rotates about directedenergy weapons: they do not involve as high a level its axis and satellites move along prescribed orbits, so that, of technical sophistication. . . . In contrast to all the cur­ in general, a satellite cannot remain above a given spot. rently proposed directed-energy weapons, kill vehicles show Second, even a thin layer of atmosphere absorbs x-rays. some promise of being able to intercept decoys and warheads Third, electJically charged particles follow curved paths in in midcourse." At another point, the authors add another the earth's magnetic field. Fourth, the wave nature of light statement which may surprise those who have bought their guarantees that [laser] beams will eventually flare outwards public image: "terminal defense is feasible, provided one and become more diffuse. Fifth, the earth is round, and one only seeks to protect hard targets [i.e., missile silos] and not must be far above the United States to see a silo in Siberia." population centers." As experimental plasma physicists and engineers in labs The UCS report, in tandem with the just-released Scow­ around the world know, this is pathetic stuff, worthy of the croftCommi ssion Report, states on behalf of Henry Kissin­ harrumphing of Victorian-era "natural scientists" sitting ger the limits of what the Soviets will tolerate in ABM re­ around the Club Roomat Cambridge and denying the validity search by the United States and Europe, in order not to chal­ of shock wave phenomena or relativity. It sounds, in partic­ lenge the Soviets' own all-out drive to engineer and deploy ular, very much like Dr. Bethe' s published 1938 "proof' that over the next 5-10 years a total national ABM defense cen­ cyclotron energies in excess of I million electron volts would tered on directed energy technologies (see Special Report). violate the laws of nature. Should the UCS and Danny Graham succeed in setting these Moreover, it is not necessary to believe such denials of limits, they will complete a 25-year job of establishing com­ technological breakthroughs in military firepower, in order plete Soviet military superiority over the United States, and to write th em. For UCS, they are merely the "sizzle" for in the process close their own files as "useful fools" of the placing the Soviet demand for an end to U. S. beam weapons Soviet KGB.

EIR April 24, 1984 National 57 Elephants andDonk eys by Kathleen Klenetsky

speaker retailed the official Demo­ will just sit out the November elec­ cratic Party line on defense: "no" to tions. Rep. Charles Stenholm, a con­ the MX missile, "no" to beam weap­ servative Democrat from Texas, told ons, "no" to virtually every proposal EIR April 10, that "if the Platform for strengthening the country's ability Committee moves to the left of 1980- to defend itself against the growing this will send a message to the South Soviet threat. that they're being written out of the party." 'The party must move Will the real Ronald on the beam issue' Then the committee heard from Mel Reagan please stand up? Klenetsky, representing presidential Given Ronald Reagan's current cozy candidate Lyndon H. LaRouche, and relations with Henry Kissinger and An indefensible Paul Gallagher of the LaRouche­ Kissinger's proxies, some people are founded Fusion Energy Foundation. wondering whether their memories of defense plank? The two stated bluntly that it's time Reagan as a staunch anti-Kissingerite The Democratic Party's 1984 plat­ for the DemocraticParty to assume its might be figments of their form plank on defense policy is shap­ responsibility for the survival of the imaginations. ing up into a document which will U.S. by including a pro-beam weap­ Yes, Reagan did make ousting bring hilarity into the dour halls of the ons plank in the partyplatform . Kissinger from high officethe princi­ Kremlin. Work on the plank began "The United States can and must pal theme of his 1976 presidential bid. April 9 in Manhattan, where the par­ have an operational capability for anti­ The following account of a Reagan ty's Platform Committee, chaired by missile defense based on both conven­ speech during the 1976 Florida pri­ the up-and-coming Rep. Geraldine tional and directed-energy technolo­ mary tells the story. We quote from Ferraro of New York, held the firstin gies within five years," Gallagher Marathon: The Pursuit of the Presi­ a series of cross-country hearings stressed. If it doesn't, "the result will dency, by Jules Witcover. which are supposed to produce a final be early and complete Soviet military "According to Reagan, Gerald platform before the July nominating superiority over the United States." It Ford had shown 'neither the vision nor convention. is particularly urgent for the Demo­ the leadership necessary to halt and The April 9 hearings, ostensibly craticParty to move on the beam issue reverse the diplomatic and military devoted to foreign and strategic poli­ now, Gallagher said, because Presi­ decline of the United States.' Ford and cy, were a five-ringcir cus. Dominat­ dent Reagan has succumbed to· pres­ Secretary of State Kissinger, Reagan ed by the "peace" wing of the party, sure from the Kissinger crew and said, 'Ask us to trust their leadership. the proceedings opened with a series adopted a "go slow" approach. Well, I findthat more and more diffi­ of panels featuring the usual assort­ In his testimony, Klenetsky sum­ cult to do. Henry Kissinger's recent ment of Democratic "policy experts" marized LaRouche's Jan. 21 nation­ stewardship of U.S. foreign policy has and publicity-hungry windbags like ally televised appeal for a national coincided precisely with the loss of Sen. Daniel Patrick Moynihan. , emergency defense mobilization, as U.S. military supremacy ....Under Star speakers included Ambassa� well as the candidate's blueprint for a Messrs. Kissinger and Ford, this na­ dor Sol Linowitz; Sidney Drell, the worldwide economic boom. "La­ tion has become number two in mili­ rabid anti-beam weapons spokesman Rouche has presented the only com­ tary power in a world where it is dan­ fromthe Stanford Linear Accelerator; petent proposal for dealing with the gerous-if not fatal-to be second Kenneth Blaylock, vice-president of ominous international financial situa­ best. . . . All I can see is what other AFL-CIO; and "nuclear winter" scen­ tion and the ThirdWorld debt crisis," nations the world over see: collapse of arist Carl Sagan-whose teeth are be­ said Klenetsky, warning that unless the American will and the retreat of ginning to look as though he brushes the LaRoucheprogram is adopted, "the American power. There is little doubt them with Glo-Coat. Of course, in the world will face a catastrophic eco­ in my mind that the Soviet Union will interests of democracy, there were nomic collapse." not stop taking advantage of detente other witnesses, too, like the Bicycle If the Democrats go with the kind until- it sees that the American people Riders of America .... of Neville Chamberlain defense plank have elected a new President and ap ­ Some wrangling broke out over that now looks likely, many many pointed a- new Secretary of , Central America policy, nearly every moderateand conservativeDemocrats State. [emphasis added] "

58 National EIR April 24, 1984 Kissinger Watch by M. T. Upharsin

"Mr. LaRouche told us that Henry sile," the article continues, "resulted Kissinger was 'an agent of influence in a sixfold increase in the number of for the Soviet Union, ' that Mr. Kissin­ ballistic nuclear warheads aimed at the ger, along with McGeorge Bundy, United States, according to the Gen. Maxwell Taylor, Robert S. Pentagon." Who's nuts, Mr. McNamara, and Bertrand Russell had "The existence of the intelligence conspired with Nikita Khrushchev to intercepts has been reported," An­ Braden? make American nuclear strategy con­ drews writes, "but the claim that Mr. Columnist Tom Braden must have felt form to Soviet policy," Braden wrote. • Kissinger knew of the intercept be­ a little funny when he opened up his Braden was a little piqued that forehandhad not. Sources said he kept copy of the Washington Times April LaRouche would include Russell, the it secret in apparent fear that it would 6. In a front-page article in that edi­ "sage of Cambridge, author of Prin­ jeopardize congressional approval of tion, Henry Kissinger was charged cipia Mathematica and famed expo­ the SALT 1 accord, of which he was a with having "suppressed and kept se­ nent of reason over faith" in his ex­ chief architect. " cret from other officials intercepts pose. And the aging liberal was "left showing that the Soviet Union intend­ a little hazy" about how Hitler, Mus­ Zumwalt blew the solini, Russian tanks on parade, and ed to violate the 1972 nuclear arms whistle agreements. " atomic-scientist Leo Szilard "played a The article, written by Walter An­ part in the conspiracy Mr. LaRouche The information in the Washington drews and headlined "Kissinger alleg­ sketched. " Times expose is not new, but it was edly withheld Soviet plan to violate But poor old Tom isn't as dumb as brought out again when Assistant Sec­ SALT I," presented the latest bit of he looks. "No doubt, however," he retary of Defense Richard Perle and the massive evidence documenting concludes, "that Henry Kissinger is at Retired Adm. Elmo Zumwalt, former Democratic presidential candidate the bottom of it all. He is not only 'a chief of naval operations, testifiedon Lyndon LaRouche's nationally tele­ Soviet agent of influence' but 'a mole,' the matter before the Senate Defense vised charges that Henry A. Kissinger a man with a mind 'antithetical to the Appropriations Subcommittee. has been acting as a "Soviet agent of Judeo-Christian tradition,' and one of "I believe there was information influence" for more than the last the principal instigators of 'the total available to the governmentat thetime , decade. collapse of the nation's morality. ' " but unknown to the Joint Chiefs of Not a very nice surprise for Bra­ Staff, that confirmed that a violation den, because the same edition of the was going to be made," the admiral Washington Times carried his raving Dr. K.'s SALT secrets said. diatribe "Lyndon LaRouche As New­ Yet, if the charges in the Washington The admiral told the Times he had est in Nuts." Braden, who had made a Times front-page story are investigat­ not become aware of the information spectacle of himself on a February ca­ ed, Braden may permanently become until after he retired from the Navy in ble television broadcast of "Cross­ more red-faced than he normally is. July 1974. The Washington Times article on Kis­ "Asked who had withheld the in- fire," in which he tried to defend Kis­ <" singer against LaRouche's charges, singer says: "The U.S. Joint Chiefs of formation, Admiral Zumwalt would took his defense of Kissinger to new Staffand Congress would probably not only say, 'it was withheld at the White extremes. have supported the agreements if the House level. ' He declined to comment Maybe no one at the Times told electronic intercepts of radio phone further, either about the nature of the Braden that the newspaper was going conversations between Soviet leader information or who had withheld it." to run an expose on how his pal Henry Leonid Brezhnev and a Russian weap­ Andrews added parenthetically, had been doing such a good job for ons experthad been known. . . ." "Other informed sources said Mr. Moscow. In any case, no one prevent­ The article by Andrews also says Kissinger knew beforehand and was ed his stream-of-consciousness ram­ that the "May 1972 intercept of a the one who withheld the information blings from being printed. Brezhnev limousine telephone con­ from America's highest military Clearly, LaRouche's March 26 versation showed that the Soviets officers. " half-hour address on ABC television planned the development of a new "Dr. Kissinger has previously been titled "Henry A. Kissinger: Soviet giant SS-19 nuclear missile, then un­ reported as having been surprised by Agent of Influence"upset Braden, be­ known to U.S. negotiators, and placed the SS-19, and as considering it evi­ cause he just couldn't stop writing a loophole in the agreements that al­ dence of Soviet 'sharppra ctice' as far about it. lowed for its deployment." "The mis- askeeping tothe termsof agreements."

EIR April 24, 1984 National 59 congressionalCloseu p by Ronald Kokinda and Susan Kokinda

Conservative senators attack on President Reagan's policy of lier ones, and my own investigations, hit Kissinger policies "benign neglect" of the Philippines. have shown the situation to be Two conservative senators who have Melcher is an outspoken opponent of otherwise. " backed President Reagan on key is­ the current liberal drive to destabilize The White House report declared sues in the past have broken with him the government of President Ferdi­ that there was no formulation for an in apparent exasperation over the for­ nand Marcos. ASAT arms control agreement which eign-policy role of Henry A. In a speech on the Senate floor, could be both verifiable and in nation­ Kissinger. Melcher referred to President Rea­ al security interests. Jesse Helms (R-N.C.) voted with gan's call for bipartisanship and The classified section of the re­ the Democrats on the Senate Foreign charged: "He is a hard President to port, which has been provided to Con­ Relations Committee April 11 to kill communicate with, even when the gress and which was described in ex­ the Kissinger Commission's $8 bil­ purpose is a sincere fundamental de­ ecutive session to the subcommittee lion recommendation for foreign aid sireto help him. EveryPresident needs on April 12, reportedly contains star­ for Central America. help, this one in particular. I have had tling information about Soviet capa­ The Helms vote deadlocked the experience with the President's lack bilities and intentions in the ASAT vote at 9 to 9, which meant that the of bipartisan interest in a special area. foreign-aid request was not reported circumstance. " Warner has indicated that Soviet out of the committee. Earlier, Helms Melcher detailed his efforts to en­ directed-energy ASAT capabilities are had voted with the Republicans to kill hance security and economic cooper­ a grave concernto him and necessitate a Democratic version of the Kissinger ation with the Philippines and said: a continuing U. S. program to develop proposals. It is unlikely that the $8 "Considering the long -time alliance of its own ASAT system. billion aid request can now be resur­ the Philippines with the United States, During the public portion of the rected on the floorof the Senate. it was an ordinary request that should hearing, the co-chairmen who had HeIms was not present for the vote, have been quickly expedited and ful­ presided over the preparation of the but instead delivered a proxy vote to filled.... Not so. The President did President's ASAT report, Assistant committee chairman Charles Percy, not choose. He is a hard man to help Secretaryof Defense for International who had assumed that Helms would in a bipartisan Philippines policy." Security Richard Perle and Dr. Henry vote in the affirmative. Percy and the Cooper of the Arms Control and Dis­ committee were stunned when the armament Agency, argued that there proxy vote was read. is no advantage to an arms-control Capitol Hill sources report that ASAT report shakes up treaty for the sake of arms control. Helms, who chairs the WesternHemi­ Senate critics Asked Perle: "Is there an advan­ sphere subcommittee and who is not A White House report to Congress on tage in an agreement that prohibits one known as an admirer of Henry Kissin­ the prospects for arms control in the or two elements of ASAT systems, ger, has been excluded from the delib­ area of anti-satellite (ASAT) weap­ when a dozen others can accomplish erative process on developing a Cen­ ons, released March 31, has persuad­ the same mission? I think not." Coop­ tral American policy. ed some reluctant senators to support er added that the United States must Helms has held hearings in his the administration's rejection of an be on guard against a Soviet "break­ subcommittee which were strongly AS AT treaty with the Soviet Union. out" fromtreaty restrictions and there­ critical of the population-control rec­ Sen. John Warner (R-Va.) said fore must not curtail its own program. ommendations of the Kissinger April 12, in hearings of the Senate While most members of the sub­ Commission. Armed Services Committee's sub­ committee have been shaken into sup­ Senator John Melcher (D-Mont.), committee on Strategic and Theater port of the President's position on AS­ a maverick who supports or opposes Nuclear Forces: "I had hoped thatout­ ATs by the classifiedbri efings, a few the President on the basis of his con­ er space could be made a sanctuary senators still seem interested in arms science and not on the basis of party from weapons ....But these classi­ control for the sake of arms control. line, on April 9 delivered a blistering fiedheari ngs, this morning's and ear- Senators Carl Levin (D-Mich.) and

60 National EIR April 24, 1984 Jeff Bingaman (D-N.M.) expressed cipal adviser to Kemp. quirement that detailed minutes of dismay over the administration's po­ Kemp bent over backwards to em­ meetings of the FOMC be taken, but sition. They were supported by John phasize that his move is by no means would not have to be released for four Steinbrenner of the Brookings Insti­ an attack on the "independence" of the years. It would also make the Fed tution, who testified that the Soviets Fed from the executive and legislative chairman's term coterminous with the have shown "restraint" in the deploy­ branches of government. President, with a one-year lag time. ment of ASAT capabilities, thereby The first bill proposedby the group House Banking Committee signaling their readiness to negotiate. would establish a "price rule" for sources thought that it was "highly un­ Steinbrenner warned that the United monetary policy, requiring the Fed and likely" that the committee would con­ States was provoking a "very hostile the Treasury to develop a price index sider the Lott-Kemp proposals. reaction" from the Soviets by plan­ of one or more commodities. If the ning an ASAT test in the fall and by index went above the target range, the talking about directed-energy Fed would be forced to adopt a restric­ weapons. tive monetary policy, and if it fell be­ In the House Foreign Affairs low the target range, the Fed would Israel's Lavie project Committee Subcommittee on Inter­ ease credit. Kemp suggested that gold pushed on Hill national Security, Rep. George Brown be one of the commodities on the One Senate subcommittee has sched­ (D-Calif.), the founder of the Coali­ index. uled hearings on expanding U.S.-Is­ tion for the Peaceful Uses of Space, This absurd proposal would un­ raeli strategic cooperation, and others held forth once again April lO on the constitutionally remove all control are considering hearings on the same need to keep space safe for Soviet over credit policy from the U.S. gov­ topic, Capitol Hill sources report. The ICBMs. ernment, subjecting it to the dictates hearings, backed by the Israeli lobby of the Swiss-controlled "market." in the United States, will focus on The second bill, "The Federal Re­ "merging the u. S. and Israeli de­ serve Reform Act of 1984," would re­ fense-industrial bases," the source quire the Federal Open Market Com­ said, including U. S. assistance to the Kemp, Lott introduce mittee (FOMC) to announce its policy Lavie jet project and various military phony anti�Fed bill changes the day they are made rather co-production proposals. Seeking to capitalize on fears among than after the roughly two-month de­ The Ariel Sharon faction in Israel conservative Republicans that inter­ lay under current practice. The bill is pushing for greaterU . S. assistance est-rate hikes will blow Republican re­ would also add the Treasury Secretary in the production of the Lavie jet, as a election chances out of the water, a to the FOMC Board, reduce board step in transforming the Israeli econ­ group of GOPers led by Rep. Jack member terms from 14 to 7 years, and omy into all-out emphasis on military Kemp (N. Y.) and House Minority make the term of the chairman of the production. WhipTrent Lott (Miss. ) announced at Fed coterminous with that of the Pres­ The Sea Power and Force Projec­ a press conference April 11 that they ident, with a one-year delay before the tion Subcommittee of the Senate will introduce legislation to modifythe President appointed the chairman of Armed Services Committee will con­ activities of the Federal Reserve his choice. duct hearings April 24 on U. S . -Israeli Board. The House Banking Committee strategic relations, featuring former The Lott-Kemp proposals would has passed two bills on the Federal Secretary of State Alexander Haig, have no long-term effect on interest Reserve this week. H.R. 5278 would administration officials, and various rates whatsoever, but would deliver allow directors at the Fed district level public witnesses .. fingertip control over the U.S. econ­ to be chosen from thrift institutions, One source described the hearings omy to the Mont Pelerin Society and credit unions, and commercial banks as the "AIPAC memorial hearings," the Swiss bankers who are behind the that are not members of the Federal referring to the role of the American­ proposed "reforms." Mont Pelerin Reserve system. H.R. 4009 would, Israeli Public Affairs Committee in economist Robert Mundell is a prin- among other things, reinstitute the re- organizing the testimony.

EIR April 24, 1984 National 61 •

NationalNews

ing license were held in October 1981. patient who survived a specific disease as Commercial operationof the unit should be- . the overriding reason to continue treatment gin by the end of 1984. of another patient with the same disease. Three Mile Island unit The report also states that when a patient is in a "vegetative state ," or is "severely, to start hot testing irreversibly demented"-a category which Unit I of the Three Mile Island nuclear pow­ includes the senile elderly-it is "mbrally er plant received permission April 10 from Beam opponent Bowman justifiable to withhold antibiotics and artifi­ the Nuclear Regulatory Commission (NRC) cial nutrition and hydration, as well as other to start hot functional testing. The testing meets the boss forms of life-sustaining treatment." will begin at the end of May , when work on Robert Bowman, the chief of the Institute The recommendations were developed the unit is completed. for Space and Security Studies, traveled to by Dr. Daniel D. Federman, former presi­ Unit I, which was closed for routine Moscow in early April . Bowman attended a dent of the American College of Physicians, maintenance when the 1979 incident at Three conference devoted to "problems of pre­ along with representatives of the medical Mile Island's Unit II occurred, has been shut venting the use of space for military purpos­ schools at Harvard, University of Pitts­ down ever since by a proliferation of new es." The keynotespeaker was the U.S.S.R. 's burgh, Johns Hopkins, and the University safety regulatio ns. Unit I was in no way first public spokesman against beam-weap­ of Texas , and from the Mayo Clinic, Uni­ affected by the incident. ons defense, Patriarch Pimen of the Russian versity of Virginia Medical Center, and Hot functional testing, which is typical­ Orthodox Church and Moscow Patriar­ Hennepin County Medical Center in Min­ ly the last stage of testing before starting chate. Bowman endorsed the Soviet propos­ neapolis. The recommendations also state operation of a unit, consists of testing plant al to ban all space-based weapons. that the "cost considerations" in medical care systems at operating temperature and pres­ Late last year, when Soviet diplomat can no longer be ignored. sure , but without the critical mass necessary Valerii Churkin failed to appear at the last to start nuclear reactions. moment to debate EIR editor-in-chief Criton The NRC decision does not mean that Zoakos on the issue of antiballistic-missile Unit I will restart operations immediately, defense in Washington, D.C., Bowman nor should there be any presumption of re­ volunteered to fill in for Churkin. LaRouche announces starting, according to a Three Mile Island spokesman. However, the plant managers campaign plans hope for a decision fromthe NRC on restart­ Aftermassive fraud againsthis presidential ing the unit by the end of June. campaign in the April 10 Pennsylvania pri­ NRC chairman Nunzio Palladino has Doctors prescribe mary, Democratic contender Lyndon H. stated that he would like the Commission to LaRouche told his supporters that he is com­ make its ruling before Commissioner Victor starvation of patients mitted to running his campaign all the way Galinsky's term ends June 30. Galinsky is Ten prominent doctors associated with some through the November election. He will en­ the only commissioner who has been a of the United States's most prestigious med­ ter all upcoming primaries possible, he stat­ member since the 1979 malfunctioning, and ical institutions recommended euthanasia ed, but, if the vote fraud perpetrated by the Palladino "values his insight." measures that include withholding food and CharlesManatt and Lane Kirkland-led usur­ Galinsky, however, has a record ofanti­ water fromcertain patients in an article pub­ pers in the Democratic Party continues, he nuclear power decisions. Galinsky, with lished April 12 in the U.S. medical "publi­ will continue his race as an independent James R. Schlesinger, was instrumental in cation of record," the New EnglandJournal Democrat. turning the pro-nuclear Atomic Energy o/ Medicine. "I cannot ignore the 20% of the vote I Commission into the anti-nuclear NRC. The proposals, promoted at a Boston received in the April 10 Pennsylvania pri­ There is every indication that Galinsky will conference sponsored by the Society for the .mary ," LaRouche stated. "With every indi­ oppose restarting Unit I. Right to Die, include decreasing or halting cation being that I actually received 20% of In addition, Unit II ofthe Susquehanna medical treatment for a patient if it "would the vote cast, I have decided that I must nuclear plant, after receiving its operating only prolong" an uncomfortable process of fulfill my obligations to the people of Penn­ license from the NRC March 23, has fin­ dying; respecting a patient's right to refuse sylvania. I will not fail the people who voted ished loading fuel. Hearings for the operat- treatment; and refusal to use the case of a for me ."

62 National EIR April24 , 1984 Briefly

• CASPAR WEINBERGER told visiting Japanese Socialist Party (JSP) chairman Masashi Ishibashi April 12 that defense ofJapan 's 1 ,GOO-mile sea lanes is vital for the defense of its economy and trade . Ishibashi, leader of Japan's number-one opposition party, responded that creating a LaRouche is running in the Louisiana fu sed a U.S. visa on the basis of "internal "friendly international environment" primaryMay 5, and Marylandand Ohio May security and national security grounds." was more important than increasing 8. He was put on the ballot for the June 5 • The United States has , however, appar­ threats . New Mexico primary in a unanimous vote ently given permission for the Soviets to by the Primary Election Nominating CO!D­ berth a passenger ship used to transport • THE HOUSE of Representatives mittee April 10. Olympic personnel and equipment in Long adopted a non-binding resolution LaRouche is also on the ballot for the Beach harbor for the duration of the Olym­ calling on the administration to halt May 15 Oregon and June 5 California pri­ pics, despite widespread concern that the the mining of Nicaragua's harbors by maries. Campaign supporters are now gath­ ship will be used as a base for espionage a vote of 28 1 to Ill. A similar reso­ ering petition signatures to place his name activities. lution was adopted by the full Senate on the ballot for the June 5 New Jersey, May April 10 by an 84-to- 12 vote . Several 24 Idaho, and June 12 North Dakota sources report that the votes signal primaries. the end of congressional funding for the anti-Sandinista rebels and possi­ Kissinger receives bly for U. S. military aid to El Salva­ state visitors dor. On April 13, thirteen Democrat­ ic members of the House Judiciary Soviets protest U.S. Readers of the Latin American press cover­ Committee. including chairman Pe­ ing Henry Kissinger's recent receptions of ter Rodino, wrote Attorney General Olympic security measures lbero-American leaders could well believe William French Smith asking for ap­ The Soviet Union issued a statement April that Kissinger had actually taken office as pointment of a special prosecutor to 9 implicitly threatening to boycott the Los U.S. secretaryof state. investigate whether high-level Rea­ Angeles Summer Olympics because of se­ Kissinger met with the president of the gan administration officials had vio­ curity measures on the part of the United Dominican Republic, Jorge Blanco, in New lated the Neutrality Act of 1794 by States. The statement, issued by the Soviet York on April 9, and on April II LaNacion, aiding a rebellion against Nicara­ National Olympic Committee, accuses the the major Argentine daily, ran a front-page gua's government. United States of of violating the Internation­ picture showing Kissinger shaking hands al Olympic Charter, and demands an "emer­ with Argentine Foreign Minister Dante Ca­ • CHARLES T. MANATT and gency session" of the International Olym­ puto during Caputo 's visit to New York. Frank Farenkopf, Jr. , national chair­ pics Committee . The accompanying article , "Coinciding men of the Democratic and Republi­ "Slanderous allegations are being made Views between Caputo and Kissinger, " can parties, signed a "campaign eth­ that the participation of a Soviet delegation claims that their "prolonged visit" could "in­ ics code" April 13 which was drawn in the Olympic Games would presumably fluenceReagan 's attitude toward the Alfon­ up by the Anti-Defamation League of threaten U.S. security," TASS wrote in re­ sin government." Caputo, who met with B'Nai B'Rith. The code claims to sponse to a U.S. demand for a list of all Kissinger for an hour and 40 minutes, is condemn personal vilification, char­ members of the Soviet delegation requiring quoted fondly praising the "rigor of thought" acter defamation, and "any appeal to visas, and that "the embassy of the U.S. of the former U.S. secretary of state . prejudice." The ADL is notorious for reserved the right for itself not to give per­ Continues La Nacion: "In effect, al­ its repeated slanders of Democratic mission for entry to those it considers though Kissinger has no official position in presidential candidate Lyndon La­ unsuitable. " the U . S. government, his is a much listened­ Rouche as "anti-Semitic ." As security sources have told EIR , one to and respected voice in official, banking , of the standard covers for Soviet spetsnaz and intellectual circles." Therefore , the pa­ • THE FEDERAL Elections operatives-highly trained search-and-de­ per concludes, the approval Kissinger "ac­ Commission released federal prima­ stroy teams deployed abroad--is Soviet corded President Raul Alfonsin's adminis­ ry matching funds to Democratic "sports" teams. One Soviet delegation trationcan weigh seriously in the U.S. atti­ presidential candidate Lyndon H. member has already been rejected by the tude towards his government." LaRouche, Jf. by a 5-to-1 vote April U.S. government: Oleg Yermishkin, pro­ Discussion between Kissinger and Ca­ 12 after almost three months of delay . posed Soviet Olympics attache, was identi­ puto centered on Argentina's handling of its fied as a high-ranking KGB official and re- foreign debt .

EIR April 24, 1984 National 63 Editorial

Genocidalists try to gag EIR

The International Monetary Fund's executive director, country merely because of our critical views. This year, Jacques de Larosiere , was caught in flagrante delicto with the toleration of the U.S. executive director for April 9 violating both U. S. law and common time­ the IMF, Mr. Richard Erb , whose loyalties apparently honored practices of according a certain elementary lie with Paul Volcker and the Treasury , Mr . de Laro­ access to news reporting agencies. siere's contempt for the free press as well as his gagging . A few hours before the IMF's semi-annual Interim diktat were allowed to pass. Committee meeting was to begin in Washington D.C., The IMF has placed itself above the U. S. govern­ Executive Intelligence Review was arbitrarily denied ment in this. The IMF's official press registration form accreditation to the IMF and to the meeting, contrary states that journalists will be accredited who present to the general practice of public institutions, and despite "current press credentials . . . such as those issued by the fact that EIR journalists have attended every such national authorities." Burdman and Ezrol have full cre­ IMF meeting since 1975 in good standing . dentials from the U.S. Department of State and U�S. EIR Washington correspondent Stanley Ezrol was Secret Service. Apparently the point has been reached ' told by IMF Chief Information Officer Helmut Hart­ at which U.S. government credentials are not good mann that "the IMF made a decision not to issue press enough for the supranational government at the IMF. credentials to the EIR this year. We have got a directive The IMF considers Itself above U.S. law altogeth­ to this effect." Despite the fact that EIR banking col­ er. 1'he IMF's chief counsel told EIR : "you have no umnist Kathy Burdman had registered with Mr. Hart­ recourse under U. S. law to reverse the Fund's decision. mann's office a month earlier and been confirmed as a The Fund is immune from suit under the treaty ratified participant by that office, she was told by Hartmann by the Congress, the Bretton Woods Agreements Act, April 10: "You were on the list, but your request has with which the United States joined the IMF. Neither been denied." Hartmann invoked "misuse of press priv­ can you bring suit against any Fund personnel such as ilege" by EIR , citing articles published by the columnist Mr. de Larosiere ." which were "deleterious to the IMF." Were the IMF an institution under U. S. law, a doz­ Further inquiry revealed that the original decision en commissions of inquiry , select congressional com­ was made by de Larosiere and communicated to Mr. mittees and special prosecutors would have been set up Azizali Mohammed, director of the fund's External by now to deal with Mr. de Larosiere's arrogance. Relations Department. EIR will hold the Fund, Jacques de Larosiere, Rich­ It is a notorious fact that the EIR has vigorously ard Erb , Azizali Mohammed, and Helmut Hartmann argued that the United States should stop funding the responsible not only for their Gestapo effort to gag the IMFwith taxpayers' dollars for the reason that the IMF's press, but, more to the substantive point, for the geno­ "loans" are exclusively used to force genocidal policies cidal policies which they are attempting to conceal and in the developing sector. EIR is on the record as an protect by excluding EIR . avowed opponent of the Fund's policies, which are Our "misuse of privilege" has been to publish ver­ identical to the monetary policies of Dr. Hjalmar batim statements of the Fund's officers openly advo­ Schacht, Adolf Hitler's economics minister. cating genocide. We shall continue to do so in the In previous years , however, the IMF had not dared future , and we shall hold the IMF and its officerslegally take the unprecedented measure of depriving the EIR responsible for "crimes against humanity" as defined of its normal rights of free press operating in a free under the Nuremberg statutes.

64 National EIR April24 , 1984 Executive Intelligence Review

u.s., Canada and Mexico only Foreign Rates Central America, West Indies, Venezuela and Colombia: 3 months ...... $ 125 3 mo. $135, 6 mo. $245, 1 yr. $450

6 months ...... $ 225 Western Europe, South America, Mediterranean, and North Africa: 3 mo. $140, 6 mo. $255, 1 yr. $470 - 1 . year ...... $396 All other countries: 3 mo. $145, 6 mo. $265, 1 yr. $490

------�------I would like to subscribe to Executive In telligence Review for D 3 months D 6 months D 1 year Please charge my:

D Diners Club No. ______D Carte Blanche No.______

D Master Charge No. ______D Visa No.______

Interbank No. ______Signature______

D I enclose $,______check or money order Expiration date______

Name,______

.. Company______

Address______�______

City______State,______Zip.______Make checks payable to EIR /Campaigner Publications and mail to EIR, 304 W. 58th Street, 5th Floor, New Yo rk, NY 10019. For more infor­ mation call (212) 247-8820. In Europe: EIR Nachrichtenagentur GmbH, Postfach 2308, Dotzheimerstrasse 164, 62 Wiesbaden, Federal Republic of Germany, telephone (06121) 44-90-31 . Executive Director: Michael Liebig.

EIR Confidential &2llert Service What would it have been worth to you or your company to have known in advance

,; that the Latin American debt crisis would economic analysts, U.S. interest rates would break in October 1983 ? rise during the second quarter of 1983 ? ,; that the degree of Federal Reserve fakery, ,; that Moscow has secret arrangements with substantial for many years, has grown wildly Swiss and South African interests to rig the since January 1983 to sustain the recovery myth? strategic metals market? ,; that, contrary to the predictions of most other

"Alert" participants pay an annual retainer of $3,500 for hard-copy briefings,or $4,000 for telephone briefings from staff specialists at EIR's international headquarters in New York City. The retainer includes

1. At least 50 updates on breaking developments LaRouche-Riemann economic model, the most ac- per year-or updates daily, if the fast-moving curate in the history of economic forecasting. situation requires them. 3. Weekly telephone or telex access to EIR's staff 2. A summary of EIR's exclusive Quarterly of specialists in economics and world affairs for Economic Forecast, produce'd with the aid of the in-depth discussion.

To reserve participation in the program, EIR offers to our current annual subscribers an introduction to the service. For $1,000, we will enroll participants in a three-month trial program. Participants may then join the program on an annual basis at the regular yearly schedule of $3,500.

William Engdahl, EIR Special Services, (212) 247-8820 or (800) 223-5594 x 818 304 W. 58th Street, fifthfloor , New York, New York 10019