[THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief: Daniel Sneider Associate Editor: Robyn Quijano Managing Editors: Kathy Stevens. Vin Berg Art Director: Deborah Asch. Martha Zoller Circulation Manager: Lana Wolfe From the Contributing Editors: Lyndon H. LaRouche. Jr.• Editor Criton Zoakos. Nora Hamerman. Christopher White. Costas Kalimtgis. Uwe Parpart. Nancy Spannaus

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Asia: Daniel Sneider Counterintelligence: Jeffrey Steinberg Economics: David Goldman Energy: William Engdahl and Marsha Freeman Europe: Vivian Zoakos "A n educational revolution" is on in the Soviet Union and has Latin America: Dennis Small been since the late 1960s, precisely the time when American youth Law: Felice Merritt became submerged in the drug-rock culture, and "dropouts" from Middle East: Robert Dreyfuss Military Strategy: Susan Welsh society-and school-became the rage. Science and Technology: Today the Soviet Union has millions of scientifically trained youth Morris Levitt graduating from high schools and universities every year. "The Soviet Sector: Rachel Douglas disparity between the level of training in science and mathematics of United States: Konstantin George United Nations: Nancy Coker an average Soviet skilled worker or military recruit and that of a non­ college-bound American high school graduate, an average worker in INTERNATIONAL BUREAUS: Bogota: Carlos Cota Meza one of our major industries, or an average member of our All­ Bonn: George Gregory Volunteer Army is so great that comparisons are meaningless. and Th ierry LeMarc Izaak Wirszup, professor of mathematics at the University of Brussels: Christine Juarez Chicago: Mitchell Hirsch Chicago drew this conclusion in a report comparing the U.S. and Copenhagen: Vincent Robson Soviet scientific education systems. Mexico City: Josefina Menendez Our Special Report details the facts of the "Education Gap," Milan: Muriel Mirak exposing one of the biggest scandals in U.S. history. We excerpt the New Delhi: Paul Zykofsky Paris: Katherine Kanter Wirszup report at length, and show the extraordinary applications of and Sophie Tanapura the Soviets' scientific revolution in a profile of the Siberian university Rome: Claudio Celani city of Novosibirsk. Stockholm: Clifford Gaddy Washington D.C.: Laura Chasen We also include a commentary on the destruction of scientific and Susan Kokinda education at West Point by Dr. Morris Levitt, Executive Director of Wiesbaden: (European Economics) the Fusion Energy Foundation. Education, you will see, is the most Mark Tritsch and Laurent Murawiec crucial of national security questions.

Executive Intelligence Review is published by But there is even more of a scandal than meets the eye in comparing New Solidarity InternationalPress Service the one year of training in geometry of an American high school 304 W.58th Street. New York. N. Y.l0019. graduate to the eight-year geometry training of his Soviet counter­ In Europe: Campaigner Publications. Deutschl. GmbH. + Co. Vertriebs KG part. Dr. Steven Bardwell, associate editor of Fusion magazine, de­ Postfach 1966. D. 6200 Wiesbaden scribes the incompetent "New Math" being taught in U.S. schools Copyright c 198 0 New Solidarity and demonstrates why this "educational reform" is destroying our International Press Service All rights reserved. children's capacity for creative thinking. Reproduction in whole or in part without permission strictly prohibited.

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TIillContents

Departments Economics

1 From the Editor-in-Chief 6 Mass unemployment is national policy 5 Editorial At least through April, all the Rethinking national goals nasty features of the present "recession" were a product of 46 Dateline Mexico Carter administration policies to create those features, and if Battle at the unemployment hit 9 percent in interparliamentary 1974-75, it's sure to hit 12 meeting percent this time. But from now on, even the "controlled 47 Middle East Report disintegration" crowd in the 'Death of a princess' White House can't plan on controlling matters. 60 Congressional Calendar 9 Gold 64 Campaign 1980 Will France put gold on the Venice agenda?

10 Domestic Credit Foreign aid for Chrysler

11 Agriculture Get a horse!

12 International Credit Germany seeks an 'island of stability'

13 Foreign Exchange

14 Trade Review

15 Science & Technology MHD: High-technology ' power production

16 Business Briefs Volume 7. Number 20 May 27

Special Report International National I

32 Brown and Muskie put SO Carter and Brzezinski's the screws on Europe mad drive toward war The Americans came into the The recent speeches of President Brussels NATO meeting Carter and Zbigniew Brzezinski threatening and armtwisting, have committed the nation to telling the continent's leaders that confrontation with the Soviet detente is finished. The Union-that is, to strategic Europeans, for their part, tried to humiliation, or holocaust. stall the issue, while the Kremlin Neither American interests nor issued warnings about 'whole anybody else's are involved. The Soviet school children take a class in geometry, which they study for a minimum nations burning up.' only question is the pervasive of ten years. Photo: Sygma insanity in the White House. Documentation: The official communique, plus statements by 53 Heroin and Brzezinski's 18 The education gap: Soviets Harold Brown, General Luns, Islamic friends leave America far behind Hans Apel, Klaus Boelling. The Malthusian program of 55 A bad day for 35 West Germany America's ruling circles has the Club of Rome degraded the nation's young and A vote in the Ruhr virtually wiped out quality for Schmidt and peace education. But in the Soviet 57 'We created the ecology movement' Union, the momentum of the 37 Italy 1960s space-exploration period An exclusive interview was never lost. As "Aquarian" WilL Cossiga survive the new terror scandal? kookery sweeps American youth, 59 UNITAR speaks the Russians are turning out 39 Middle East 'How we shall mathematicians and scientists by regionalize the world' the millions. Here are the facts Iraq leads the Arabs suppressed by the U.S. against 'Islamic pact' 62 National News government. 40 Iran 21 The Wirszup report President Bani-Sadr 'Soviet education: so far ahead versus the Mullahs comparison is meaningless' 41 Asia 25 Novosibirsk The Soviets warn Ohira tames Siberia on 'China card'

26 Can we restore 43 EIR's Frankfurt conference: West Point's tradition? realizing Nehru's dream The speech of Raghunath Reddy 28 Math vs. 'New Math'­ how it should be taught 48 International Intelligence

• Editorial

Rethinkingnational goals

"A basic rethinking of national goals, policies, and Who is to blame for the destruction of our strategies regarding the use and misuse of psy­ youth through drugs, for the degeneracy of our choactive drugs is required," states a recent report military, for the destruction of our educational of the Drug Abuse Council. "To state it plainly, the system that now teaches adaptation to "post-indus­ challenge facing America regarding drugs is to trial society?" determine how best to live with the inevitable avail­ Behind the heroin epidemic and the drug decri­ ability of psychoactive drugs." minalizers is the basic economic and political policy The Drug Abuse Council, the White House which cannot be implemented unless the moral, advisory panel on drug policy, openly endorses this cultural and intellectual life of the nation is im­ marijuana decriminalization policy called for by paired. That is why drugs have been systematically both Ted Kennedy and Jimmy Carter. introduced into the United States from the time of The drug epidemic has become a question of the CIA's MK-Ultra project into the 1980s. national security if one compares the degraded Who is to blame for the current "rethinking of state of the majority of the youth of the United national goals?" States with the education and scientific capacities Milton Friedman, champion of austerity and of Soviet youth. Yet the policy coming out of the depression economics and a top advisor to Ronald White HOuse demands that we learn "how best to Reagan, firstendo rsed drug decriminalization, not live with the inevitable ..." From a national secu­ only marihuana but heroin, in 1972. He was also a rity standpoill,t, this is treason. key proponent of the disaster called the All-Volun­ According to a confidential report compiled by teer Army, where drugs are rife and the average the U.S. Drug Enforcement Agency in November volunteer reads at a 5th-grade level. 1979, the U.S. will fa ce the worst·heroin epidemic The Islamic fundamentalists, lead by the Aya­ in its history as h!=roin floods in from Iran, Paki­ tollah Khomeini, are growing poison for American stan, and Afghanistan. The 1980 opium crop from youth-the same Khomeini put into power by these countries is estimated at 1,500 metric tons, Carter advisor Zbigniew Brzezinski. The same almost ten times the opium harvest of the Golden Brzezinski praises and funnels funds and arms to Triangle area of Southeast Asia, traditionally the "the fiercelyind ependent" Afghan tribesmen who supplier of three quarters of the world's opium are the opium growers. exports. Ayatollah Khomeini's heroin exporting Behind the Carter administration's inaction policy is responsible for this extraordinary crop in against the drug menace is "Dope, Inc.," the inter­ the regions dominated by his Islamic doctrine. national drug cartel which is run by the same The new Mideast supply of heroin will consti­ families that brought you the Trilateral Commis­ tute open warfare on the nation's youth. Aside sion, the New York Council on Foreign Relations fr om the massive increase in quantity and the low­ and the Club of Rome. ering of prices, the unusually high potency will The same policy makers who advocate the make addicton and overdose rates soar. The purity "controlled disintegration" of the U.S. economy of a "dime bag" now being sold in New York has a must bring you drugs, counterculture and mysti­ dangerously high rate of purity ranging from 2.3 cism. Milton Friedman's drug advocacy, like that to 62.8 percent. Th�s means thousands of young of the CFR, is totally coherent with the "national people will be dead by overdose this summer. goal" of a zero-growth society.

EIR May 27, 1980 Editorial 5 !mTIillEconomics

Mass unemployment is the national policy

by David Goldman

April's 7 Percent unemployment rate is not merely proof $2.5 billion reduction of capital spending plans for the that the United States is entering a "deep recession," as present year. most of the commentators suggest, but that unemploy­ Such capital spending was not an elective for Ford ment is an intentional fe ature of public policy. No one Motor Co., which must downsize its cars by 1985 to meet should be deceived that a $25 billion tax cut, as proposed EPA regulations or cease to function as a major Ameri­ by the Business Council and various economists to coun­ can automaker. The strong implication, already suggest­ teract the apparent severity of the downturn, will have ed by highly-placed Washington sources, is that Ford significant effect on the economy. What is at work is will drastically reduce its unprofitable domestic opera­ something more fundamentally wrong than anything tions, now running at a deficit rate of between $1.5 and that occurred in the 1974-75 period. $2 billion p.a., in favor of more profitable fo reign oper­ What is qualitatively new in the bad news announce­ ations. Also significant is the speculative collapse of ments of the past two weeks is that the part of the defense and aerospace industry stocks on the New York economy which was artificially protected by expectations market, despite continued efforts of analysts to promote of hefty military orders and strong Federal support for them on grounds that the United States is moving to­ energy-autarky schemes has begun to unravel. As EIR wards a war economy in the long term. reported in its survey of the American economy last On the energy side, all the talk about multi-billion month, the difference between September-March 1974- dollar investments in synthetic fuels plants has not yet 75 and September-March 1979-80 lies in the "mix" of the materialized in the fo rm of hard Federal dollars. It is still economy between consumer and capital goods. Al­ not clear whether the demonstration plant built by though the two downturns were comparably severe in Exxon, American Natural Resources, and other firms, the consumer industries, total industrial production did and funded by a group of gas-using utilities, will survive not fa ll over the past eight months, although it fell by 15 fo ot-dragging in Washington. percent during the earlier recession period. For reasons stated clearly by Manufacturers Hanover Now, in bits and pieces, the capital goods sector IS economist Irwin Kellner, the conjunction of a collapse in starting to unravel. U.S. Steel, which lost some forty capital spending on top of the devastation of the consum­ percent of its orders during April, is now operating at 60 er sector means mass unemployment: percent of capacity. A wave of mass layoffs is now fo llowing in steel, after a similar wave in auto. The first . .. the pace at which jobs were created during the important breaks in capital spending plans have been expansion that began in April 1975 was nothing reported. National Steel announced the reduction of its short of phenomenal. This reflected a fo rtunate spending plans by 20 percent, along with other steelmak­ confluence of two elements of demand and supply. ers. Even more significant is Ford's announcement of a The supply of people willing to work was there

6 Economics EIR May 27, 1980 An unemployment line in New York. "Simple arithmetic tells us that if the 1974-75 recession brought unemployment to a peak of9 percent. the current recession will reach a peak of 12 percent unemployment if the overall downturn is of comparable severity." Photo: NSIPS

because of the two- and three-income family ... unemployment may seem, that is the least of the econo­ The demand for workers matched supply because my's problems.The bigger problem is that, if events of the shift in the economy towards labor-intensive, proceed linearly on their present course, the economy low-productivity industries ... if this recession will never recover. spreads across a whole host of consumer industries, EIR demonstrated in the cited survey, through a as I think it will, then layoffs will occur in services, computer simulation employing the LaRouche-Riemann retailing and white-collar industries in general. It model, that by 1981 the American economy will no stands to reason that if it took more than the usual longer be capable of replacing obsolesced and deteriorat­ number of workers to increase output in a labor­ ed plant and equipment, after five years of negative net intensive sector, it will take a layoff of more than capital fo rmation, after the deduction of real deprecia­ the usual number of workers to decrease output if tion. It is intuitively obvious that the costs oflost capacity these sectors run into difficulty. And, I would utilization and lost skills in the workforce associated with remind you, that unlike past cycles, fa milies won't prolonged idleness will bring us to this point fa ster. have credit to turn to, since lending institutions But the round of current developments demonstrate have virtually shut off the credit tap in the wake of that it is not merely a question of when the American the mid-March policy tightening. economy will undergo the phase change which we earlier described as "thermodynamic death," but also, what sort Simple arithmetic tells us that if the 1974- 1975 recession of phenomena are associated with the period approach­ brought unemployment to a peak of 9 percent, the ing such a phase change. In this sense the London current recession will reach a peak of 12 percent unem­ Economist's criticism of Federal Reserve Chairman Paul ployment if the overall downturn is of comparable sever­ Volcker is superficially correct; the Economist wrote, ity. These figures, of course, do not include workers who "Like a teenager with a new sports car, the Fed has spent have stopped looking for work, gone onto welfare, or the first six months at its new controls learning that it otherwise disappeared from the count at the unemploy­ can accelerate fast and brake hard. It has still to master ment centers, or potential labor force entrants excluded cruising at a steady pace within the speed limit." from the workforce due to adverse conditions, or an However, the Economist is drastically in error when it entire range of labor force participants otherwise exclud­ assumes that a middle course exists in the firstpl ace. The ed . The actual unemployment rate now is above 10 intention of the Carter administration, as EIR reported percent when these categories of unemployment are in depth over the past several months, was explicitly to added to the official totals-assuming that the Bureau of turn out the results that pertained through March: to Labor Statistics count is honest. butcher the consumer sector of the economy and build However, drastic as the prediction of 12 percent up the military and quasi-military sectors of the econo-

EIR May 27, 1980 Economics 7 my, including energy autarky. The administration was whose most devastating provision was the overall limi­ lifting entire pages of Nazi Finance Minister Hjalmar tation of credit extension by commercial banks to 9 Schacht's manual of 1933-1938. Its chosen instrument percent per year (against a 15 percent annual rate during for this reorganization was the Federal Reserve Board, the first quarter), threatened to bring the entire credit which received more power at the hands of Rep. Henry system down. Banks' lending slowed to virtually zero. Reuss than Schacht ever enjoyed at the Reichsbank, and Pittsburgh National Bank economist Norman Robert­ the semi-secret Federal Emergency Management Agen­ son calls this "the largest two month decline in thirty cy, the successor of the Strategic Bombing Survey and years" (see chart). The economy droPPed out so fast that the Office of Preparedness. What the administration even Wall Street Journal columnist Lindley Clarke, Jr., wanted was precisely what we saw until April. Milton Friedman's voice on that newspaper, proposed How mindlessly stupid this policy is became evident May 13 that the Federal Reserve remove the statutory 9 when bank newsletters appeared this week describing the percent rule. In any event, rather than let the entire change of the economy's "mix" between capital and financial system come down with a crash-a month ago consumer goods, at the moment that the capital goods top New York investment bankers had put their entire side of the economy began to break. The Morgan Guar­ personal fortunes into short-term Treasury bills in expec­ anty Survey, fo r example, wrote in its May issue, "At tation of such a crash-the Federal Reserve brought the present, there are few signs of imminent weakness in Federal Funds rate down by 8 percent in less than three business capital spending. Indeed, most investment indi­ weeks, taking the major pressure off the commercial cators do not suggest any sudden deterioration of outlays banking system. on plant and equipment. Moreover, there is a distinct As the Economist of London critique suggests, the absence of the speculative excesses that were an impor­ Fed and administration are now attempting to "fine­ tant element of the capital-spending collapse of 1974- tune" a depression through the most incompetent possi­ 75." Manufacturers Hanover also called the consumer ble methods. For example, the White House is reportedly the "biggest negative this time around." not displeased by a Federal judge's May 13 decision to We have published the results of computer simulation postpone the SlOper barrel surcharge on imported oil. ofthe policy described above in some detail, but the basic Reportedly, administration economists fear that the new problem is simple: concentration of investment in either tax on top of other strains would yield uncontrolled non-productive industrial sectors, e.g., military goods, disintegration of the economy. Even for an administra­ or in the least-efficient of available technologies, e.g., tion whose leading policymakers wrote the 1979 Council synthetic fuels, produces a tendency towards hyperinfla­ on Foreign Relations statement that "controlled disin­ tion, for the simple reason that the incremental capital­ tegration of the world economy is a legitimate objective ized value of the equity and debt associated with such fo r the 1980's," this is something to give pause. ventures exceeds the total value added to the economy. The issue of the defense budget hoax is also revealing. The "success" ofVolcker's restrictions against consumer We now know that despite the burst in defense spending credit, combined with an open door to credit fo r capital during the last quarter of 1979, the current state of spending in such areas and a 30 percent p.a. increase in defense procurement is exceedingly parsimonious; the the rate of military spending, gave us a 20 percent administration has actually deferred some spending in inflation rate by early this year. order to show a paper increase of 3 percent in military The Volcker March 16 credit controls package, spending between the Fiscal 1980 and Fiscal 198 i budg­ ets! The current year's budget deficit will now undoubt­ edly top $70 billion, and the budget deficit next year Domestic Commercial and Industrial Loans could "easily" top $100billion due to the loss of revenues Per Annum Rates of Growth through the depression. This deficitdo es not even count lstQuarter Last six about $70 billion in off-budget financing. Some Wall 1980 weeks Street analysts are predicting a sharp interest rate upturn, not only because of the excessive volume of Treasury financing, but because corporations delayed payment of NYC Banks 4.4% -7.7% April taxes, in effect borrowing fr om the Federal goven­ Money Cen ter Banks 10.4% -6.9% ment, and will have to come onto the loan market to (including NYC) make up these payments.

Regional Banks 19.6% 5.7% There is no longer a middle ground between hyper­ inflation and general industrial collapse, contrary to the All Large Economist 's illusions. That has already been demonstrat­ Commercial Banks 15.6% 0.3% ed in computer simulations. Now it has also been dem­ onstrated by the headlines of the financial press.

8 Economics EIR May 27, 1980 Gold by Alice Ro th

Will France put gold on Venice agenda? friend" Bernard Clappier, the for­ Central banks have put a $500floor under the bullion price, mer French central bank chief, for while everyone wants to hear Giscard's undisclosed plan. the details, Clappier said he had asked Giscard the same thing and was told: "Figure it out for your­ self." Meanwhile, New York traders report that some Western and F rench President Giscard concerning Giscard's monetary Eastern European central banks d'Estaing is expected to advance a plan occurs amidst mounting signs have been regular buyers of gold sweeping proposal fo r internation­ that both the French and West whenever the price dips below 5500 al monetary reform, including a German governments are prepared an ounce. This central bank activ­ plan to enhance gold's role, at the to move independently of the U.S. ity could indicate that European upcoming Venice summit of West­ in the foreign and military policy governments have an informal ern heads of state. Although Gis­ spheres. Just before Carter's failed agreement to support the gold card indicated that he was prepar­ Iranian "rescue" mission, the two price at the 5500level. Rumor also ing such a plan as long ago as last governments had fallen in line be­ has it that Bank for International December, French officials de­ hind the U.S. in a display of Settlements chief Jelle Zjilstra is clined to give any details and since "Western solidarity" and there proposing a "band" within which then few references to the plan were even some rumors that Gis­ the gold price would fluctuate, as have appeared in the press. card would drop his monetary pro­ a countermove. However, in a recent issue of posal. However, in the wake of the The gold market has been in his Green 's Commodity Market "rescue" mission fiasco, the view the doldrums since February be­ Comments, analyst Charles Stahl in Paris is that the Carter admini­ cause of the international credit predicted that Giscard's plan stration is dangerously adventurist crunch which has caused private would have a major impact on and unstable. The crisis has appar­ investors to liquidate their gold world markets: "Valery Giscard ently given Giscard cause to recall holdings in favor of high-yielding d'Estaing will come up with some his own Decem ber speech, in debt instruments. This downward kind of proposal to enhance the which he stressed that the only way pressure on the gold price has been role of gold in the monetary sys­ to secure world peace was to build neatly counterbalanced by central tem. We do not believe that [his] a new monetary system that COUid bank and Middle Eastern purchas­ proposal will be accepted ... but solve the problem of Third World es as well as by the fact that two the mere expectation . .. should underdevelopment. major sources of gold supply, the add fuel to the bullishness ..." The threat of a new French U.S. Treasury and the Internation­ The Giscard plan was also the initiative on gold has caused some al Monetary Fund, have with­ subject of an editorial in the May consternation in the Anglo-Amer­ drawn from the market. The 12, 1980, issue of Barron 's. Bar­ ican financial establishment. Treasury has not held a gold sale ron's stated that Giscard would Brookings Institution senior econ­ since November, in belated recog­ probably propose "some form of omist Robert Solomon commented nition of the fact that the effort to link between the EMS and other M ay 13 that Giscard "would never demonetize gold has failed, while major currencies, such as the dollar dare" to propose an expanded the IMF's mandate to auction its and the yen. Central banks would monetary role for gold and insisted gold expired this month. be empowered to maintain stable that the French would, at most, As a result of this standoff in exchange rates partly by buying suggest a new petrodollar recy­ the "supply-demand equation," and selling gold." Barron's also cling mechanism to roll over Third the gold price has moved in a quotes a French official as saying World debts. However, as Solo­ narrow range between 5500 and that there will be "a recognition of mon admits, Giscard's actual plan 5550 in recent weeks. Depending gold's proper role as a monetary is a closely guarded secret. When on Giscard's long-awaited mone­ asset." Solomon went to Paris to find out tary plan, the gold markets could The heightened speculation about it and asked his "close spring alive again.

EIR May 27, 1980 Economics 9 DomesticCredit byLydiaSchulman

Foreign aid for Chrysler plan a sale of new stock to the While Japanese banks stretched out little-known loans public. These conditions were under pressure, some Senators still want to shut down the waived by the Loan Guarantee Board last week. whole works. An aide to Senator Weicker . said in an interview that Chrysler's domestic bank creditors must make good on $159 million in loan A fter much delaying, the govern­ could be an issue when Prime Min­ commitments to the automaker ment's Chrysler Loan Guarantee ister Ohira meets with President that were still outstanding as of Board decided last week to release Carter during Ohira's forthcoming last fall. $1.5 billion in fe deral loan guar­ visit to Washington in May." "There won't be any money in antees to the Chrysler Corp., pav­ Until several months ago the the till if Chrysler goes belly up ing the way fo r a new infusion of Japanese banks, which include and defaults on the guaranteed credit to the ailing automaker. Mitsubishi Bank, the Industrial loans, unless the banks agree to While this event was capturing the Bank of Japan, and the Bank of the letter of the law now ... . Some headlines, a number of other de­ Tokyo, had been providing trade time ago the marketplace decided velopments surfaced which bear on credits to finance the import into that it wouldn't support Chrysler the nature of the "rescue" package the U.S. of subcompact cars and any more by buying its commercial and on the fate of Chrysler. light trucks made by Mitsubishi paper, because it is not a prudent On May 6, Keizai Shimbun (Ja­ Motors Corp., in which Chrysler investment." Sens. Weicker, Prox­ pan Economic Journal) reported has a 15 percent interest. At one mire, et al. would like to see Chrys­ that Chrysler Corp. is asking seven point last winter, the Japanese ler go "belly side up" with no more Japanese banks to accept deferred banks were considering suing adue. payment on $30 million in dollar­ Chrysler to recover their $156 mil­ Complaints that the loan guar­ denominated bonds that were pri­ lion as unidentified European antee package is just an elaborate vately placed in the Tokyo capital banks have apparently done. Then debt rollover-and one of more market in December 1972. The came the political armtwisting. benefit to Chrysler's creditors than bonds in question have a 15-year The existence of the Japanese to the automaker-are valid, how­ maturity and were to have been credits was only hinted in the vo­ ever. Chrysler'S own financial re­ redeemed at a yearly rate of about luminous documents on the finan­ ports show that between December $3 million starting in 1979. cial condition of Chrysler submit­ 1978 and December 1979, the cor­ According to an April 22 re­ ted to Congress by Treasury. poration's outstanding commercial port in Nihon Keizai, the seven In another development, Sen. paper, its unsecured IOUs to large banks were previously pressured Lowell Weicker (R-Conn.), Sen. investors, dropped from $1.65 bil­ into accepting a stretchout of $156 William Proxmire (D-Wisc.), and lion to only $62.4 million. The loan million in short-term trade credits other critics of Chrysler are seek­ guarantees package would simply into nine-year loans to help out the ing to challenge the Loan Guar­ substitute high-risk short-term cash-starved Chrysler. The author­ antee Board's decision to release debt that Wall Street rejected with itative Japanese economics weekly the guarantees by attaching an other debt bearing the govern­ reported: amendment to the $1.5 billion ap­ ment's imprimatur. "There was strong speculation propriations bill. The amendment The release of the loan guar­ last week that such a change in would make the actual appropria­ antees substantially altered the dim credit status, rare in the banking tion contingent on meeting the ex­ outlook for Chrysler. The corpo­ business, was worked out under act conditions specified by the loan ration is expected to have to tap political .pressure at a time when guarantee act passed by Congress $500 million of the loan guarantees there is considerable friction in Ja­ last December-namely, that by the end of May and another pan-U.S. trade relations over Jap­ Chrysler's creditors extend it new $600 million before the end of anese car sales in the U.S., which unsecured loans and that Chrysler 1981.

10 Economics EIR May 27, 1980 .Agriculture by Su san B. Co hen

Get a horse! and abundant supplies .of energy. Agriculture Secretary Bergland does not believe in farmers' And we have learned that mechan­ ical and chemical techn.ol.ogy can using machines. fertilizers and insecticides. exact a high price in terms .of er.o­ si.on, p.olluti.on, and human health." As he has stated repeatedly, Bergland emphasized that research m.onies sh.ould be dev.oted t.o find­ . ing ways t.o reduce the use .of fer­ tilizer, pesticides and petr.oleum. "I de net think that federal t.omat.o pr.oducti.on but is eliminat­ T.o implement this p.olicy, funding fer laber-saving devices is ing th.ousands .ofsteep lab.orj.o bs. Bergland set up a c.ommittee .of a pr.oper use .of fe deral m.oney," This, acc.ording t.o the CRLA, is c.onsumer and farm representatives Agriculture Secretary Bergland c.ontrary t.o the public interest. that is charged with s.orting .out t.old a Calif.ornia audience last De­ At last rep.ort, the Alameda the "public" interest fr.omthe "pri­ cember. Bergland's preference fer . C.ounty superi.or c.ourt judge trying vate," s.ocially harmful research cheap, manual lab.or .over ma­ the case has .opted t.o ign.ore the categ.ories. One .ofthe c.o-chairmen chines is as repugnant t.o American imp.ortant issue .of whether .or net .ofthis c.ommittee is USDA Deputy industry's werking people as t.o these techn.ol.ogical devel.opments Direct.or .ofthe Office .of Ec.on.om­ farm pr.oducers. University re­ benefit the public, and has instead ics, P.olicy Analysis, and Budget, searchers, pr.oducers and agribusi­ narr.owed his c.onsiderati.on t.o Susan Sechler. Ms. Sechler teld nessmen were up in arms .over three p.oints c.oncerning. p.ossible Science magazine recently that Bergland's pr.on.ouncements. Let­ c.onflict .of interest .of university werk was geing slewly because .of ters were fired .off t.o the White .o.oficials with h.oldings in agribu­ the centreversial nature .ofthe sub­ H.ouse demanding that Bergland siness and the like. ject, and stressed that great care retract the statement and issue a This was the c.ontext in which was being taken te be fair. Ms. p.olicy "clarificati.on." Bergland repeated his p.olicy state­ Sechler hastened te add, hewever, Secretary Bergland, refusing t.o ment. "We will net put fe deral that she is cenvinced that agricul­ retract the statement, instead re­ m.oney int.o research where-ether ture has beceme, as she put it, "a stated his p.olicy in a speech and fa ct.ors being equal .orneutral -the tremendeusly evermechanized in­ press release at the end .ofJan uary. maj.or effect .of that research will dustry," and that every effert The December .outburst was net be the replacing .of an adequate sheuld be made te draw the line just an idle remark. At the time, a and willing w.orkf.orce with ma­ en research prejects that ceuld ac­ law suit against the University .of chines." celerate mechanizatien. Calif.ornia had been making its Bergland als.o added that up t.o The eder .of the virulently anti­ way thr.ough the state c.ourts t.o new, tee much emphasis has been technelegy "Agriculture Acceunt­ prevent tax d.ollars fr.om being put .on the value .of pr.oductivity ability Preject," inspired by Ralph used t.o supp.ortresearch that alleg­ gains resulting fr.om new farm Nader and targetted by this news edly benefits private, net public techn.ol.ogy, and net en.ough atten­ service three years age as having interests. The suit, brought by the ti.on has been paid t.o the "s.ocial an in .ordinate influence en the s.o-called Calif.ornia Rural Legal c.osts" .of ad.opting new techn.ol.o­ Carter Agriculture Department, is Assistance pr.oject, centers .on the gies. unmistakable in Chairman Berg­ devel.opment .of a mechanical t.o­ Bergland stated explicitly his land's mechanizatien pelicy. Incre­ mate picker at UC-Davis, where a d.oubts ab.out the future viability dibly, accerding te the May 9 issue prot.otype lettuce picker has als.o .of high-techn.ol.ogy fa rming and .of .of Science. this "pelicy clarifica­ been devel.oped. The CRLA main­ highly mechanized farms, because, tien" has stilled at least seme .of tains net .only that the mechanical as he put it in the pel icy clarifica­ the angry farm veices frem Cali­ harvesting machinery is increasing ti.on, "we n.o l.onger have cheap f.ornia.

EIR May 27, 1980 Ec.on.omics II InternationalCredit by Pe ter Ru sh

Germany seeks 'island of stability' harder and harder by the [central But the dangers that prompted establishment of the bank and supervisory] authorities. European Monetary System now require its expansion. We'll fight on the ratios [an effort to limit lending in proporton to bank capital] but we're on the los­ ing side of things. It will endanger the recycling process." EIRcon ducted an informal poll West Germany and, above all, West Germany, along with this week of the Group of 30, the France launched the European France and Japan, has not only body assembled last year by the Monetary System two years ago as experienced an influx of petrodol­ International Monetary Fund and a strategic solution to the credit lars but will undoubtedly see the financed by the Rockefeller F oun­ starvation of the Third World, and flow increase. But the deposits are dation to oversee world monetary the East-West war threat fueled by not being lent to the developing reform. Members expressed in Third World "hot spots." Lesser sector, as this Big Three banker strong terms the likelihood of a policymakers were drawn by defensively complained. Europe new dollar crisis, in comments Schmidt and Giscard into the per­ and Japan are financing their own ranging from "The [V.S.] econo­ spective because the Carter ad­ current accounts deficits and prim­ my is falling away beneath us, and ministration had triggered an ines­ ing domestic investment, while reserve diversification into capable dollar crisis. much of whatever German Euro­ deutschemarks will speed up," to The EMS contribution to dol- . lending persisted in the past fo ur "When the Europeans really think lar stabilization has been a large, months has gone to V.S. corpo­ about a Reagan presidency, the successful one, but the Phase II rations strapped by the Federal dollar will go." plan for absorbing petrodollars Reserve's credit corset! Publicly, however, the line is and other Euromarket deposits The resort to high interest rates that the dollar has stabilized and into a European Monetary Fund, to induce capital inflows, cut im­ it will strengthen as the V.S. eco­ then relending them with backing port costs through currency appre­ nomic collapse reduces imports fr om pooled gold reserves in the ciation, and hold down consump­ and eventually cuts inflation. The form of long-term Third World tion-the "island of stability" con­ American and British financial development credits, has been cept expressed by Bundesbank press have been full of such judg­ stalled. At this point, private Eu­ chief Karl-Otto Poehl and emulat­ ments, though the sources don't ropean banks are not even func­ ed by Japan's Ohira government­ believe them and moreover are still tioning as the "safety net" that is not a workable one either for committed to phasing out the dol­ sustained Third World lending last Europe and Japan, or for their lar' s reserve role. year. Arab associates. There is the dan­ Why the deception? It reflects A highly placed Frankfurt ger of dollar turmoil renewing in­ a specific stage in the ongoing banker told EIR May 14: "The terest-rate escalation on the V.S. "aversive conditioning" process problem is that we're not lending side later in the year, or the pos­ against Western Europe. Ham­ anything on the Euromarkets. Our sibility of Penn Central-style finan­ mered over the past months with exposure, the country limits, are cial panics and the potential fo r unworkable and undesirable stretched to the last pfennig. Now the V.S. to exports its "recession" schemes for expanding the reserve we are pressuring the government Most pressingly-as the Group of role of the IMF's Special Drawing to help us. There is no way, the 30 economists themselves said this Right, France and West Germany banks can handle the recycling week with sincere horror-the are at present being induced to alone; we need government guar­ Third World economic situation imagine they have won a victory antees And the goddamned Arabs will engender "terrific instabili­ by shelving such proposals, and should do more direct lending. ties." The factors that prompted can "muddle through" the V.S. "This is a dangerous problem, the European Monetary Fund con­ economic crisis without fundamen­ very much so, this controlling of ception are therefore still there in tal initiatives on their own. the Euromarkets. We are pressed spades.

12 Economics EIR May 27, 1980 Can theAmeri can The dollar in deutschemarks econonnyrecover? New York late afternoon fixing

A 1.95 A , series of seminars on 1.90 V the LaRouche-Riemann 1.85 t-A ...... y, Economic Analysis 1.80 "'"'- .A - ..... iI" sponsored by 1.75 3/'1.6 4/2 4/9 4/16 4/23 4/30 5/7 5/14 the Executive Intelligence Review and the Fusion Energy Foundation. The dollar in yen Treasury Secretary Miller recently asserted that New York late afternoon fixing "all economists have been wrong. I think we have to recognize that there isn't an econometric 260 model of any type that has been able to predict what has happened." 250 /\ � I""""""' IV MR. MILLER IS WRONG 240 � �". The LaRouche-Riemann economic model is the only econometric model to forecast with accu­ 230 "-�� � _I" racy the impact of the Carter administration's 220 "anti-inflation" poliCies. 3/'1.6 4/2 4/9 4/16 4/23 4/30 5/7 5/14

The dollar in Swiss francs New York late afternoon fixing In New York:

1.85 .1\ Wednesday, May 28, 2:30 PM " 1.80 \ City Squire Hotel 7th Ave. & 51st St. 1.75 � Registration fee: $50 per person � 1.70 � - 1.65 \1\ 3/'1.6 4/2 4/9 4/16 4/23 4/30 5/7 5/14 In Hartford, Conn: Wednesday, June 4, 2:00 PM The British pound in dollars Hotel Senesta New York late afternoon fixing Registration fee: $50 per person

2.30

2.25 Ir'\.� For more information about seminars planned 2.20 - r' "" for your area, contact: EIR, 2.15 M... r Leu Johnson, 304 W. 58 St., � New York, N.Y. 10019 2.10 or call (212) 247-8820 3/26 4/2 4/9 4/16 4/23 4/30 5/7 5/14

EIR May 27, 1980 Economics 13 TradeReview

NEW DEALS

Cost Principals Project/Nature of Deal Financing Comment

($) 1.7 bn Saudi Arabia from Modernization of Saudi navy, includ­ France won France ing supply of several guided missile out against patrol boats and corvettes for both the Italian Red Sea and the Gulf. This contract competition follows an earlier one to France for modernization of the Saudi army; France will supply 1,000 tanks and reorganiZe the ground defense system ($) over Argentina/France Pechiney will. build a uranium process­ Accord signed 200 mn ing plant in San Rafael, Argentina with Atomic (near Mendoza). The entirety of the Energy plant's production will go to France's Commission Atomic Energy Commissioon (CEA). Pechiney will hold 25 percent of Mi­ nera Sierra Pintada, the plant's owner ($) over Portugal from Switz­ Motor-Colombus Ingenieurunter-neh­ winning bid 419 mn erland mung AG of Baden, a Swiss civil en­ announced gineering concern, will supply Portu­ gal's state utility, Electricidade do Por­ tugal, with a steam power station in Sines ($) At USSR from Japan Japanese export of 700,000 tons of As much as $350 Export credits least 350 large pipe for use in a Siberian natural mn in Japanese approved by mn gas project "Eximbank" Japanese credits government on basis of similar W. German "go-ahead" on Soviet pipeline deal ($) 300 Peru from USSR Olmos dam and irrigation in draught­ Soviet 18 year Contract mn stricken northern Peru. Originally dollar credits at signed planned by an American in 1920s, Ol­ 6.5% mos has been subject of Soviet studies for a decade ($) 21 mn Abu Dhabi from Matra will supply television equipment Contract France to Zakum Development Co., an· affil­ awarded iate of Abu Dhabi's National Oil Co., for use in surveilling drilling plat­ forms. The National Oil Co. is closely linked to France's CFP ($) 5.6 mn Greece from U.K. Olympic Airways has.ordered two SD- 330 "Commuterliner" aircraft

($) 1.8 bn Egypt from Siemens (W. Germany and Austria) West German W. Germany, France, and Thomson CSF (France) are ne­ financing Austria gotiating to supply telephone equip­ arranged on ment to Egypt "soft loan" terms (no more than 5.5 percent) insisted on by Egypt. French and Austrian I agreement not yet concluded

14 Economics EIR May 27, 1980 heat source, such as a nuclear reactor or coal combustion, the working fluid is recirculated after power is drawn off Science & Technology from the MHO generator and is reheated and reused-a closed cycle. The four major parameters that must be in precise balance for efficiency of conversion and for the produc­ tion of large power loads are the electrical conductivity of the working fluid, the velocity of the fluid through the MHD: efficient channel or containing vessel, the strength ofthe magentic field and the configuration of the electrodes to most power production efficiently draw off the current produced in the genera­ tor. Each of these parameters has expanded the technol- by Marsha Freeman ogy and engineering capabilities of industry and, in some cases, has helped pose whole new problems and solutions Magnetohydrodynamics has the capability of direct in power engineering. production of electricity at increasing efficienciesand with­ • In order to bring the electrical conductivity up to out environmental problems. Part 1 of our series. required levels in working fluids made up of combustion products, researchers have developed a chemical seeding Since 1832 and the experiments of Michael Faraday process. it has been known that if an ionized fluidis passed across • To increase the flowrate of a gaseous fluid beyond the line of fo rce of a magnetic field, an electrical current the speed of sound, nozzle systems are used that compress is produced. This method of generating power without the gas and then expand it as it accelerates in the MHO any moving parts is known as magnetohydrodynamic channel. (MHO) direct energy conversion and it can be used with • For baseload power systems, where the magnetic any fu el, in space and in industry, and is the best means fields must creat� a Lorentz fo rce large enough to sepa­ fo und yet to take the products of combustion or heat and rate enough of the charged particles in the working fluid turn them into the highly organized form of energy in a to make the system economical, researchers developed power grid. As such, it is an important part of the high­ superconducting magnet systems. Basically, the Lorentz technology alternative to the Carter administration's force is the force created on the charged particle when a proposal' for inefficient and costly synthetic fuel and flow of charged particles is passed through a magnetic alternative energy programs. field that is at right angles to the direction of fluid flow. MHO electric power conversion is an extremely flex­ The particles separate by charge, providing the electric ible technology. Generators can be built in the range of potential by which a current can be drawn off when a 30 megawatt devices for scientific experiments and as load is attached. portable power sources. (Such devices are operational in • Finally, working out the complexity of the magnet­ the Soviet Union now.) And baseload electric power ic and electrical fields in the MHO generator has led to generators for commercial utility systems will likely use the design and engineering of sophisticated generators MHO systems with a 1,000 megawatt capacity. that capture only the Faraday current (the current pro­ The working fluid in the generator can be combustion duced as the result of the Lorentz fo rce that is perpendic­ products, including oil, natural gas, coal, or chemical ular both to the direction of fluid flow and to the mag­ rocket fuel, where the fuel is partially ionized in the netic field) or only the Hall current (the electric field process of burning at high temperatures. Or at the lower induced by placing a current-carrying conductor in a temperatures available from fissionreac tors, the working magnetic field) or that optimize the system by making fluid can be liquid or vaporized metals such as sodium as use 9f both. well as noble (inert) gases. With thermonuclear fusion, Research and experimentation in MHO for numer­ the nuclear combustion process of fusion will eventually ous applications is ongoing in the United States, the provide a high-temperature plasma as the working fluid. Soviet Union, Japan, Great Britain, the Netherlands, MHO generators can be designed in either open­ France and West Germany. In the next installments in cycle or closed-cycle configurations, depending on the this series on the technology of magnetohydrodynamics, working fluid. If the fl uid used is the combustion product EIR will review the various approaches (fossil, nuclear of a fossil fuel, the exhaust gas from the MHO generator and fusion) and its applications. can have its heat transferred to a conventional steam Our thanks to the Fusion Energy Foundation and its turbine cycle for additional power generation-an open magazine Fusionfo r providing much of the information for cycle. With a liquid metal that is heated by an external this series.

EIR May 27, 1980 Economics 15 Business Briefs

Foreign banking the controls on credit cards and the The only "environmental" drawback extra reserve requirements on certain to the scheme, Robbins said, was that it French declare war on categories of bank holdings. would produce "low-frequency noise Volcker told the gathering, "Money pollution from the motion of the huge Swiss banking 'secrecy' and credit growth have slowed appreci­ rotor blades." ably. Indeed, there is now considerable French customs officials have raided the room for growth consistent with the Paris offices of the Swiss Bank Corpo­ targets we set for ourselves for all of ration and a subsidiary of the Nestle's this year." Yet, Volcker counterposed: Energy Company and arrested a Swiss financier "My point is that interest rates have not in a crackdown against illegal activities in any sense been forced lower, nor will Carter program flounders carried out by Swiss businesses long they be, at the risk of a resurgence of protected by strict secrecy laws. inflation and inflationary expectations." With one of its key elements upset in The crackdown, which also includes Volcker has maintained a very tight federal court this week and other major meticulous searching of all luggage rein on the amount of liquidity actually fe atures under ridicule, the Carter ad­ coming in from Swiss flights, began last reaching the medium and small sized ministration's energy austerity program week in apparent retaliation for the ar­ tiers of U.S. industry. It is possible that has run into some choppy water. The rest in Basel, Switzerland of two French he has tightened so severely in the past program as a whole will probably sur­ customs investigators April IS. The two seven months, that he may have to pump vive more or less intact, however, as the were entrapped in Swiss territory after a massive infusion of fu nds into the bulk of the legislative package continues an agent for the Basel police had prom­ economy just to prevent an uncontrolled to sail through the Congress. ised to deliver documents violating blow-out. Some thought his May IS Federal District Judge Aubrey Ro­ Swiss secrecy laws to the two French­ speech would signal just that. However, binson's action to overturn the oil im­ men. there has been no sign yet that in the port fe e President Carter · designed to Informed observers note, however, near future new supplies of credit will rake off a 10 cent per gallon gasoline that the entities being harassed by reach the medium or small sized U.S. tax on Tuessday brought a prompt out­ French authorities-with the full back­ company or many larger companies that cry from the New York Times. The ing of the government-are notoriously have been shut out of the credit market. Times insisted that nothing less than a well known fo r their sponsoring of Club so cent per gallon tax was tolerable. For of Rome "zero economic growth" pol­ the time being, though, the import-fee icies (Nestle's) or involvement in the gas-tax is prohibited. laundering of dirty money linked to Technology Further, qualified commentators narcotics traffic. continue to point out the fantastic bent of the program goals. Texaco's Tor NASA tilting at windmills Meloe, a fo rmer government economist, Credit told the Atlanta Economic Club recently In a May IS speech at the National that a single plant producing Western Vo lcker says no Aeronautics and Space Administration shale and tar sands based fuel would (NASA) Lewis Research Center, Wil­ cost from $3 billion to $7.s billion-and let-up in crunch liam Robbins, the head of NASA's its best output would be 100,000 barrels Wind and Stationary Power Division, per day. It is highly doubtful, Meloe Addressing the annual convention ofthe . announced that "thousands of giant added, that there would be any com­ National Association of Mutual Savings windmills" could supply one-third of the mercial synfuel production by 1990. Banks, Federal Reserve Board Chair­ electric power of the U.S. and could Carter, however, remains fu lly com­ man Paul Volcker indicated May 14 that provide "an alternative or supplement" mitted to the program, and a flatulent he will not significantly let up on the to nuclear-powered and conventional Congress continues to push and pull policy he initiated last October. generating plants. and shove at the program, moving it Volcker did tell the assembled sav­ "We don't need any miracles to do steadily through the hurdles into law. ings bankers that he hopes to eliminate this. No major technological break­ The Energy Mobilization Board is now some of the features of the March 14 through is required." All that is needed, in conference committee where the invocation of the Credit Control Act Robbins insisted, was the building of strange battle between the warhawks and replace the mandatory 6 to 9 percent 90,000 advanced-design windmills and the environmentalists appears to be corset on new bank lending by a "vol­ grouped in "wind power farms" using settled in favor of the fo rmer, granting untary corset." Volcker will continue currently available technology. the Board powers to waive environ men-

16 Economics EIR May 27, 1980 \ Briefly

tal guidelines in the synfuel effort. There this quarter that will "wipe out the could be court tests later, but for the artificial gains of the first quarter." moment, the Mobilization Board, like • A MILTON FRIEDMAN as­ the Energy Security Coproration synfuel sistant, in his office at the Hoover Institution on War, Revolution administrative arm, is headed for a suc­ In ternational credit cessful floor vote in the near future. and Peace in Palo Alto, Califor­ nia, has asserted that "it is prob­ Funding for IMF, World ably true" that Friedman recently Bank hits snag advocated decriminalization of marijuana. "In 1972, Friedman Banking wrote a piece for Newsweek ad­ The Carter administration may be vocating the decriminalization of FDIC chief to savings forced to reduce the u.s. contribution all drugs ," the assistant pro­ to several regional development banks banks: "drop dead" claimed. "Friedman argues that by about 10 percent in order to satisfy to outlaw drugs is an infringement conservative Congressional opponents on individual freedom." Irving H. Sprague, chairman of the Fed­ of u.s. participation in these institu­ eral Deposit Insurance Corp., has ac­ tions. The effected agencies include the cused savings and loan institutions of Inter-American Development Bank, the • PETROSTUDIES, a Swedish "still clinging too much to the frayed African Development Fund, and the research firm, says that the Soviet and worn security blanket of federal Asian Development Bank. Union will not only not become protection." Sprague delivered this crit­ According to Washington sources, a net exporter of oil in this decade, icism in a speech before the annual the administration may agree to cut but will probably not import any meeting of the National Association of appropriations for the banks as a trade­ petroleum during the 1990s. More Mutual Savings Banks on May 14. off for Congressional approval of an intense exploitation of existing Many savings institutions are in se­ increase in the u.s. quota at the Inter­ fields, said PetroStudies, will give rious financial trouble as a result of national Monetary Fund and increased the Soviets ten years of assured skyrocketing short-term interest rates funds for the International Development full production before it is neces­ which have caused savers to withdraw Association, an arm of the World Bank. sary to findnew reserves. Reliance their funds and place them in higher­ Congressional opposition to the on American capital equipment yielding Treasury bills or money market funding measures appears to stem large­ will also be eliminated. funds. The plight of thrift institutions ly from conservative Republicans, who has been exacerbated by the passage of view them merely as more expensive • THE CHINESE have attempt­ the Reuss-Proxmire Monetary Control "handouts to foreigners." To combat ed to produce their own version of Act of 1980 which eliminates many of this resurgence of "isolationism," Treas­ Boeing's 707 jet, but aftercomple­ the competitive advantages which the ury Secretary William Miller has re­ tion of the model at a secret facto­ thrifts enjoyed. leased the text of a recent speech he ry, it wouldn't fly. Reports indicate To alleviate the pressures on their gave before the Chicago Council on that the Chinese, who apparently industry, the association proposed the Foreign Relations. "These institutions built the plane out of extra spare restoration of the one-quarter percent­ are the centerpiece of our efforts to parts ostensibly ordered for 4 age point extra interest that thrift insti­ restore stability and growth to a trou­ Boeing 707's purchased in the tutions were previously allowed to pay bled world economy, strengthening the United States, forgot to establish a on six-month money-market certificates foundations for broad political cooper­ center of gravity for the aircraft, when Treasury bill rates were above 9 ation. An inward turn is not a solution the firstprinciple of design. Boeing percent. It was in response to · this pro­ to the political threat (to the United representatives, as well as the Pe­ posal that Sprague made his remark States in Iran and Afghanistan) or to kingese, are said to be very embar­ about "security blankets." the world's economic problems." , assed at China's failed effort to Sprague also refused to consider ap­ Despite Miller's liberal veneer, Third copy the 707. Unconfirmed ru­ plying a temporary reserve requirement World critics of the IMF /World Bank mors, however, say that the Carter to the assets of money market funds, and associated regional institutions administration intends to go ahead charging that this ran against "the gen­ point out that these agencies have fos­ with plans to purchase 50 helicop­ eral trend toward freer competition." tered underdevelopment by peddling ters equipped for desert deploy­ As if this were not enough, Sprague backward "appropriate technologies" ment from the same Chinese engi­ stated that he expects the savings bank and forcing governments to adhere to neering firm. industry to suffer "severe losses" during stringent austerity conditions.

EIR May 27, 1980 Economics 17 TIillSpecialReport

The education gap:· Soviets leave America far behind

by Vin Berg

Will the Soviets Rule in the 1980s? Democratic presidential candidate Lyndon LaRouche, in a fall 1979 book of that title, recounted a world strategic situation veering increasingly close to thermonuclear war. The imposition of a Malthusian zero-growth policy on the Western economies, coupled with two decades of de-emphasis on manpower training and basic scientific research, has significantly undermined U.S. military capapilities and their industrial fo undation. At present, the Carter administration, with its new escalations in the Persian Gulf under the directi�n of Zbigniew Brzezinski, is plunging America toward a war it would certainly lose. Yet, as the following report establishes, the present Soviet advantage in both military and industrial applications of basic scientific research now appears small by comparison with what that advantage may become in the near future. Educational statistics and other information that has been in the hands of the U.S. government for four months-and suppressed-show that Soviet education and scientific manpower development is in the process of realizing the most dramatic sort of achievements. In the United States, deterioration is continuing in an equally dramatic way. One fact fr om the following report summarizes "the education gap": last year, a mere 105,000 students were turned out of U .s.high schools with one yt(ar of calculus; in the Soviet Union, 5 million 1979 graduates had two years of calculus or more. Such differentials, moreover, hold across the spectrum of scientific disciplines. How could this have come to pass? In the late 1950s, the United States government-stunned awake by the Russian sputnik-launched a crash science education and high-technology space exploration program that became centralized under the National Aeronautics and Space Administration. The NASA years had a tremendous impact on the whole of American society, as science and the potential for

18 Special Report EIR May 27, 1980 Photo: Sygma

personal development in an age of technological progress, captured the imagination of the American people. The emphasis in school curricula was mathematics, chemistry, physics, engineering, and Americans of working class origin could dream-and In this section did-of their children growing up to be scientists, or even astronauts. Obviously, something similar was afoot at that time in the Soviet The articles and information con­ Union; this report establishes that the Soviet development has accelerated tained in this report were the product of a special EIR team through the present day. But between now and then in the United States, that included Dr. Morris Levitt, something happened. Dr. Steven Bardwell, Marsha At first, there appeared a "protest" movement-called New Left­ Freeman, and Yin Berg. barely distinguishable from a youth "counterculture" steeped in marijuana, psychotropic drugs and rock-and-roll. The anti-technology bias was evi­ dent, and then became blatant. Throughout the '70s, amorphous cultish • The Wirszup Report: fads and movements spread, and drugs reached down to the elementary 'Soviet education is so school level. The fo rmer New Lefters contrived to discover that a nuclear far ahead comparison is technology accident-free for 30 years was, somehow, a safety hazard. meaningless' Not every kid went nuts. But just enough did to create an environment of unreality for all, a know-nothingism disposed to accept sado-masochism • Novosibirsk tames and homosexuality as, if anything, a more legitimate "lifestyle" than Siberia with science nuclear engineering. As of 1980, an entire generation of American youth-the same who • Can we restore grew up in the NASA years-is either addicted to drugs, rock, environ­ West Point's tradition? .� mentalism, astrology, and homosexuality, or ready to justify peoples' "right to do their own thing." , After all, the President believes in UFOs. Governors take drugs and • Math vs. 'New Math'­ meditate. Mayors are flagrant homosexuals. One U.S. senator-a fo rmer how it should be taught astronaut!-has called fo r Congressional appropriations to probe the role of extraterrestiral beings in the injury of cattle in his state.

EIR May 27, 1980 Special Report 19 This deep-rooted moral and intellectual decay has not been a "sociological phenomenon," but a deliber­ ately induced social crisis, scheduled, prolonged and deepened in phases by a network of "social psychology" research institutions under Sussex, England's Tavistock Institute and its subsidiary NATO intelligence arm, the Club of Rome. The New Left, terrorism, environmen­ talism, the gay movement, cults of the supernatural­ all aspects of a single, vast "social engineering project" aimed at surgically crippling and eradicating the "American dream" of progress. The guiding principle of the financial aristocracy behind Tavistock is Malthusianism, and their quest is to achieve a "zero growth" age, a "New Dark Age," or-as the social psychologists delight in defining it: the "Age of Aquarius." Not just we say so; they say so-as in Stanford Research Institute associate Marilyn Ferguson's book, Th e Aquarian Conspiracy. The systematic degractation of the educated youth of the 1960s and 1970s is an evil. But what America now faces is a singular point of no return. The American educational system itself has been methodically cur­ tailed and gutted of scientific content. In the name of "liberal arts" and "social relevance," instruction in mathematics and the sciences has been dramatically reduced, and the content of what remains must leave the serious student in demoralized agreement with the Aquarians-science is not "socially relevant." What need of education in an "Age of Aquarius"? In fact , the Malthusian elite of the "Aquarian conspir­ acy" cannot allow it ! The Aquarian project itself was launched after Tavistock studies of the impact of NASA and related programs in producing a growing number of scientists and engineers. The ego-ideals and "self­ image" of all Americans was directed by the potentials of science. Even grade-school children could recount "The Soviet Union's tremendous in­ the mechanics of rocket fueling, lift-offand propulsion. vestment in human resources, unprec­ The decay that the United States has since been edented achievements in the education forced through has fo und no reflection in the Soviet of the general population, and im­ Union, however. mense manpower pool in science and As we document, the Soviet Union is not only far technology will have an immeasurable ahead in present numbers of scientific and technically­ trained personnel: the Soviet Union presently enjoys a impact on that country 's scientific, greater potential fo r future development on this basis industrial and military strength. The than ever before, while the United States-even now recent Soviet educational mobilization, behind-has virtually eliminated its potential in terms poses aformidable challenge to the na­ of educated manpower to recover its fo rmer greatness. tional security of the United States, one If the "incalculable" lunacy of U.S. ruling circles that isfa r more threatening than any does not plunge the nation into a thermonuclear holo­ caust in the months just ahead, we are forced all the in the past and much more dif.fi.cult to more to raise LaRouche's question: Will Malthusian meet. " policies reduce America to relative Third World status? Prof. Izaak Wirszup Will the Soviets rule in the 1980s? December, 1979

20 Special Report EIR May 27, 1980 The Wirszup- rep-ort: 'Soviet education: so far ahead comparison is meaningless'

In December 1979, Izaak Wirszup,professor ofmathemat­ particular success in the development of institutions that ics at the University of Chicago, sent a preview report of an combine general education with the training of skilled in-depth comparison of the Soviet and U. S. scientific edu­ labor (technical-vocational schools) and middle-level cation system to the National Science Foundation. The professionals (secondary specialized schools). report exposes one of the biggest scandals in the history of For the 98 percent of the school-age population that the United States. Wh ile American children and youth have now completes secondary school or its eqUivalent, the been inundated with the drug-rock counterculture, Soviet Soviets have introduced science and mathematics curricula children and youth have been undergoing what the " Soviets whose content and scope place them fa r ahead of every call an 'educational revolution'," which, says Wirszup, is other nation, including the United States. Their foremost "tantamount to an enormous expansion of the manpower scholars and educators are engaged in improving the training system, and radical curricular reforms brought school curricula and perfecting teaching methods in a about by an unexpected turn toward the individual and the concerted drive to provide mass education of unmatched development of his ability to do independent, creative quality .... work. " In order to appreciate the scale of Soviet educational Forfo ur months, the Wirszup report stirred reaction at expansion, it is worth remembering that during the Stalin the highest level of government and academia, but it never era the secondary school graduation rate was as low as emergedinto the public ligh t. Finally on April 17, Wirszup 4.9 percent-out of 1000 children entering the firstgrad e released the story to the Chicago Sun Times and the in 1930, only 49 completed the tenth grade in 1940. In University of Chicago newspaper. Wirszup is regarded as 1957-the year of Sputnik, andjust prior to the Khrush­ an international authority on mathematics education. He chev reforms of 1958-no more than 1,728,000 students directs several National Science Foundation projects at graduated fr om secondary schools. In June of 1978, the University of Chicago and is the author of the book, however, after years of extraordinary investment and Soviet Studies in the Psychology of Learning and effort culminating in the introduction (1975) of compul­ Teaching Mathematics. sory lO-year schooling, over 5,000,000 students gradu­ Executive Intelligence Review now publishes sections ated from secondary schools of all types, a success rate of of the report with the purpose to show Americans that its 97.7 percent. (In the United States, by contrast, nearly 75 contents must be acted upon in the United States: the percent of all 17-year-olds-about 3, 1 50,000 students­ drug counterculture afflicting our youth must be imme­ graduate from high school.) diately stopped and it must be replaced with scientific and The major impetus for the tremendous changes that moral training of our youth fo r productive adulthood. have taken place was a Nov. 10, 1966 resolution adopted by the Central Committee of the Communist Party ofthe ... My investigations show conclusively that in the Soviet Union following the Twenty-Third Party Con­ last decade the Soviets have made simultaneous quanti­ gress. This resolution, entitled "On Measures for Further tative and qualitative gains without equal in the history Improving the Work of the Secondary General Educa­ oftheir education, affecting the entire young population. tion School," addressed the demands of the "scientific They have dramatically restructured and expanded their and technological revolution" for a skilled labor force multi-track secondary educational system, achieving with a broader general education and a higher intellec-

EIR May 27, 1980 Special Report 21 tual level. The resulting measures represented a total or science-oriented disciplines, and more than half of the commitment to change in Soviet !lobal educational 1,000,000 entering higher education each year have in­ goals and policies in relation to manpower needs, with tensive training in mathematics, starting with a compre­ particular emphasis on the individual's preparation for hensive course in calculus. maximally productive service to the state. Still another consequence of the 1966 resolution was These changes (which the Soviets call an "educational the emergence of elective studies in various school sub­ revolution") are tantamount to an educational mobiliza­ jects. In addition to the compulsory school mathematics tion of the entire population: an enormous expansion of curriculum, which accounts for 6 hours per week in each the manpower training system, and radical curricular of grades 1-8 and 5 hours in grades 9 and 10 (a total of reforms brought about by an unexpected turn toward the more than 2000 class hours over ten years), over 1.6 individual and the development of his ability to do million students in grades 7-10 participated in elective independent creative work. studies in mathematics during 1973. These studies, which Responsibility fo r the reform in general education extend and deepen the compulsory curriculum, were schools was assigned to the highest scientific and educa­ established primarily to foster habits of independent and tional institutions of the Soviet Union-the USSR Acad­ creative work. emy of Sciences and the USSR Academy of Pedagogical In addition, hundreds of thousands of youngsters Sciences. take part in an exceptional range of extracurricular A team of scholars from both Academies, headed by activities-mathematics clubs, circles, and olympiads­ A.N . Kolmogorov, has been responsible since 1964 for or study in unique secondary schools specializing in the entire school mathematics reform. Kolmogorov, one mathematics and physics-all designed to discover of the century's great mathematicians, worked in close mathematical talertt and to train it from the earliest collaboration with such outstanding scholars and edu­ possible age. These programs have been developed and cators as Markushevich, Gnedenko, Boltyanskii, Vilen­ refined by world-famous mathematicians such as I. M. kin, and Yaglom to set the goals of the new program, Gel'fand, A. N. Kolmogorov, M.A. Lavrent'ev, and S.L. design the curriculum in every detail, decide on ways of Sobolev over some 45 years and have proved immensely treating various topics, and write the texts and manuals successful. . The programs themselves and the vast and fo r students and teachers. (Kolmogorov himself is the original literature used in conducting them have no equal co-author and editor-in-chief of three volumes on geom­ in the West. etry and two on algebra and calculus.) It is quite evident that the successful Soviet experi­ The result of their 15-year-effort is a program for ences and achievements in mathematics education are mathematics instruction that is modern in content, in­ being applied with extraordinary fe rvor and commitment novative in approach, well-integrated and highly sophis­ to the closely related areas of the computer sciences. The ticated. It gives strong emphasis to theoretical fo unda­ Soviets look upon automation of production and man­ tions and logical rigor as well as to applications. The agement as a key weapon fo r overcoming the inefficiency program culminates in a calculus course taught in grades other aspects of their system impose on the economy. 9 and 10. Moreover, the extraordinary Soviet research in Obviously, great difficultiescould have been expected the pscyhology and methods of learning and teaching for the Kolmogorov school mathematics curriculum. It mathematics has been applied in the new curriculum, is clearly far ahead of any offered on a mass scale-an which now surpasses in quality, scope, and range of exceedingly innovative program in a country where the implementation that of any other country. educational traditions are extremely strong, a program In only ten years, the Soviet compulsory program fo r accomplishing what is still considered unattainable here: all students covers the equivalent of at least thirteen years teaching two years of calculus to the entire young gener­ of American schooling in arithmetic, algebra and calculus, ation of a nation of over 260 million. In addition, all and does so much more thoroughly and effectively. Th e youngsters are required to complete fiveyears of physics American one-year geometry course offe rs but a very small (including, fo r example, an introduction to Einstein's fra ction of the Soviet 1O-year geometry curriculum. special theory of relativity), and fo ur years of chemistry We are confronted, for example, with the fact that (including a full year of organic chemistry). These are over 5,000,000 graduates of Soviet secondary educational compulsory school programs of the highest quality, institutions in 1978 and 1979 have studied calculus fo r two which like the mathematics program have been prepared years, while 105,000 United States high school students by renowned scientists (Academicians I.K. Kikoin and have taken a one-year calculus course (1976). This shock­ Ya.B. Zel'dovich) and introduced after years of experi­ ing situation is not ameliorated substantially by study at mentation. Difficulties were perhaps inevitable if one our institutions of higher learning. In the fall of 1975, remembers that this radical school reform coincided with only 397,000 American college students were enrolled in the enforcement of compulsory secondary schooling and calculus courses. The majority of Soviet students at the accompanying explosion in the school population. institutions of higher learning are studying engineering For example, over a fifteen-year period (1960-1975) the

22 Special Report EIR May 27, 1980 enrollment in grades 9- 10 has increased more than The system of technical-vocational schools has more fo ur times, fr om 2.6 million to 10.8 million in all types of than tripled enrollments since 1960, from 1,064,000 to general education schools, and from 1.5 million to 6.2 3,68 1 ,000 in 1977. The most modern and advanced of million in the general-education day schools.... them, the secondary technical-vocational schools (3-4 I do not doubt that the Soviets will overcome most of years), offer both general education and technical train­ the obstacles. The Comm unist Party and thegovernment ing: 71 started operation in 1966, and have increased to are determined to adopt the highest possible educational 3,700 schools in 1979, with an enrollment of over standards and maintain the scale of mobilization they 1,750,000. The technical-vocational system also includes have recently achieved. The individual youngster, who is the post-secondary technical schools (1-2 years), which earnest, well-disciplined and intensely motivated, will show similar growth: 364 schools with 210,500 students pursue maximum education and training in spite of the in 1970, 1,000 schools with some 1,000,000 students in dislocations involved. Not only is it the main criterion 1978 (projected admissions to these schools for 1980 will for success in a society that has become increasingly reach 800,0(0). compartmentalized by educational achievement, it is The long-established secondary specialized schools practically the only safe avenue to a more comfortable have also expanded; enrollment rose from 2,059,500 in standard of living under Soviet conditions. 1960 to 4,662,000 in 1977-78. Similarly, enrollment in The persistent elitism of the Soviet educational sys­ institutions of higher learning more than doubled in the tem can be illustrated by data on admissions to various period 1960- 1977, fr om 2,396,000 to 5,037,000. (In 1977, levels of schools in 1977: 752,000 persons graduated fr om institutions of higher After demanding competitive examinations, learning with training corresponding to our master's 1,017,000 persons were admitted to institutions of higher degree.) learning, of whom 613,000 entered day-session depart­ In addition, over 36 million people learned new ments. Only the top 9-10 percent of the 5 million second­ professions or improved their qualifications in 1977-78, ary school graduates were admitted to day sessions of and millions more studied in various establishments fo r higher institutions. continuing education. At the next level, 1,430,000 students gained admis­ Returns on this educational expansion are already sion, again based on competitive examinations, to the impressive, and they have only begun. During the Ninth secondary sp ecialized schools (primarily tekhnikums), Five-Year Plan (1971-75) the technical-vocational which train middle-level professionals and white-collar schools alone trained some 9,500,000 skilled workers, a technicians. Of these, 925,000 were admitted to the day­ figure projected to reach 11,000,000 in the Tenth Five­ session schools, predominantly new graduates of the 8- Year Plan (1976-1 980). (2, 119,000 skilled workers grad­ year and IO-year general-education schools. The Soviet uated from these schools in 1976.) target is to have nearly one-fifth of its youngsters in a In 1977, the secondary specialized system produced secondary specialized school. The adjective "secondary" 1,185,800 graduates, 70 percent of whom became profes­ here is an anachronism. These schools with 3-4-year sionals in engineering, agriculture, and management. programs, although designed mainly for graduates of It fo llows that some 3 million skilled workers and the 8-year school, actually represent a much higher level. trained middle-level technicians enter the Soviet econo­ An examination of curricula and of text materials used in my each year. Their high educational and technical level some tekhnikums indicates that with regard to profes­ promises to accommodate manpower needs, both indus­ sional-technical and science-mathematics content, their trial and military, by turning out more versatile and programs correspond to between 2 and 3 years at U.S. efficient workers for high technology production. This technical institutes or colleges.) intensive effort is particularly important in view of the The remaining graduates of the 100year schools (well impending serious labor shortage in the European part over 70 percent), either go directly to work in various of the Soviet Union. branches of the Soviet economy at the lowest qualifica­ In 1978, A. A. Bulgakov, Chairman of the State tion and salary rank or enter the technical-vocational Committee of the USSR Council of Ministers on Tech­ school system, which trains skilled workers. In this case, nical-Vocational Training, reported on research showing they are assured a higher rank and an opportunity fo r that graduates of the secondary technical-vocational more rapid job advancement. The young generation is schools are more productive, efficient, and contributive increasingly obliged to follow the road of technical-vo­ of improvements to technology and production. They (a) cational schooling, and the government's goal is to advance in qualification rank twice as fast as workers provide such training for 45-46 percent of Soviet youth . receiving other fo rms of vocational training; (b) are more The Soviets' current educational mobilization is char­ likely to learn new or combined trades (50 percent within acterized by intensive investment at all levels, with partic­ 2-3 years of starting work); (c) participate more readily ular emphasis on the various types of secondary school­ in rationalization and invention in their work (40 per­ ing which affect the entire workforce. cent-4 times those without this training); and (d) in-

EIR May 27, 1980 Special Report 23 crease their annual productivity 1.5 times more than their In addition, the curriculum of the Soviet general educa­ counterparts with different basic training. Bulgakov's tion school includes: data derived from research at two Leningrad plants, need 5 years of physics no fu rther comment: 4 years of chemistry 1 year of astronomy Trained: 5-1/2 years of biology In schools of tech.- After completing 5 years of geography voc. education for a technical and By the Indlvldual- period of 1-1.5 secondary tech.-voc 3 years of mechanical drawing and-team method years schools to years of workshop training Production unit 258.7 320.7 529.2 All of these courses are compulsory. output per The NSF studies on Th e Status of Pre-College Sci­ worker ence, Mathematics, and Social Studies Educational Prac­ Cost (In tices in U.S. Schools. . .. show that of our high school rubles) of .59 .36 mechanically .75 graduates, 9. 1 percent receive one year of physics, /6./ producing percent one year of chemistry, 45 percent one year of one gear biology, and 17.3 percent one year of general science. (Over 56 percent of districts responding to the survey The effect of educational expansion on the labor force indicated that they required no mathematics courses, or is reflected in a 1978 statement by M.A. Prokorev, only one, for graduation fr om high school.) Minister of Education of the USSR. He notes that 80 A very rough comparison of the content of mathe­ percent of the workers at the Volga Automobile Plant matics programs in the two countries shows the fo llow­ have completed either higher education, specialized ing: professional, or full secondary education, and the re­ maining 6,000 workers are stUdying. Mathematics programs Anyone fo llowing the course of the Soviet education­ al mobilization, which has already achieved great success since its start in 1966, can see that this is just the begin­ USA USSR ning of a determined drive to achieve scientific and = technological supremacy. L. I. Brezhnev has stated 8 years of arithmetic the arithmetic and algebra I year of general mathe­ training in Soviet grades bluntly: "The field of scientific and technological prog­ matics or business mathe­ I through 5 and part of ress is today one of the major fronts in the historical matics (esseptially a re­ grade 6. battle between the two systems." view of arithmetic)

First�year algebra algebra in grades 6-7 .' ' It is extremely difficult to compare educational and part of 8 achievements in two countries as fu ndamentally different One year of geometry = geometry in grades 6-7. as the Soviet Union and the United States. Still, in order 8-10. to give some idea of what has happened in the USSR in Advanced algebra algebra in grades Advanced .mathematics recent years, I would like to offer a preliminary compar­ Trigonometry ative interpretation of Soviet secondary mathematics and science training in light of the three NSF studies. Virtually the entire young Soviet population has been If we bear in mind that the upper 60 percent of our receiving 10 years of compulsory schooling in mathemat­ high school graduates are college-bound, it follows from ics, comprising: the NSF Studies that an average college-bound U.S. high school graduate (one in the 70th percentile), or an entrant 3 years of arithmetic (grades 1-3) to one of Ol.Jr military academies, acquires the following 2 years of arithmetic combined with algebra background in mathematics and the sciences: (grades 4-5) 5 years of algebra (grades 6- 10) 8 years of arithmetic, and possibly 1 year of gen- 10 years of geometry (5 of intuitive geometry in eral mathematics grades 1-5; 3 of semi-rigorous plane geometry in 1 year of basic algebra grades 6-8; 2 of semi-rigorous solid geometry in 1 year of geometry grades 9-10) 1 year of advanced algebra or trigonometry 2 years of calculus (grades 9- 10; in the future at most, 1 year of chemistry or physics calculus may be taught in grade 10 only) 1 year of biology

24 Special Report EIR May 27, 1980 Allowing that a U.S. high school graduate has ac­ quired in primary school a science background equiva­ lent to the Soviet- 3 years of natural science (grades 2-4) 3 years of geography (grades 5-7) 2 years of biology (grades 5-6) 1 year of physics (grade 6) we find that a Soviet secondary school graduate who is university-bound, or entering a military academy, or one who is a middle-level professional or a skilled worker Novosibirsk has, in comparison with his American counterpart, on the average, at least (in years, not hours): tames Siberia 1-2 years more training in algebra 8 years more training in geometry 1-2 years more training in calculus with science 4 years more training in physics 3 years more training in chemistry Only two decades ago, there was virtually nothing there. 3-1/2 years more training in biology Today, what was a vast expanse of desolate tundra, 1 year more training in astronomy semingly uninhabitable, is an international symbol of 3 years more trainigg in mechanical drawing human scientific achievement. A city of 1.5 million has 6-10 years more training in workshop beenbu ilt in the middle of Siberia: Novosibirsk. Many of the Soviets have an additional several years of Its creation in ,the space of two decades is not only the elective courses and extracurricular activities in mathe­ consequence of the Soviet Union's commitment to sci­ . matics, science, or technical fields in school or at an entificand technological progress, but to an educational institution of higher learning and in the Pioneer Houses. policy that matches. In fact, Novosibirsk might be de­ Th e disparity between the level of training in science scribed as one vast university and scientific laboratory, and mathematics of an average Soviet skilled worker or developing a labor force that can apply the most ad;; military recruit and that of a non-college-bound American vanced technologies for the development of the whole of high school graduate. an average worker in one of our Siberia's resources, and much else besides. major industries. or an average member of our A 11- Volun­ In the mid-I 950s, when the Soviet Union had largely .. teer A rmy (in 1977 only 59 percent of the Army's entrants completed the reconstruction of its economy' from the possessed a high school diploma) is so great that compar­ destruction of World War II, a major expansion of isons are meaningless. Consider, on the one hand, the scientific efforts was undertaken, most famously result­ Soviet's educational background in mathematics and ing in the 1957 Sputnik space shot. But also included was science (presented on page 9), and, on the other, the research into controlled thermonuclear reactions (fusion American's: energy), advanced industrial processing, and economic planning methods. 8-9 years of arithmetic In 1957, a group of scientists under the leadership of 1 year of algebra Academician Mikhail Lavrent'ev submitted a proposal I year of geometry, at most to the government for the establishment of a branch of and no high school level physics, chemistry, biology; or the Moscow Academy of Sciences in Western Siberia. In astronomy. May, the proposal was approved by the government and The Soviet Union's tremendous investment in human in June it was taken up by the Academy Presidium. The resources. unprecedented achievements in the education of objective of the plan was to create an on-site centerthat the general population. and immense manpower pool in could solve the problems blocking the development of science and technology will have an immeasurable impact the vast resources of Siberia and the Far East. on that country's scientific. industrial and military Complementing the earlier established institutes of strength. It is my considered opinion that the recent Soviet Chemicals and Metallurgy, Transport and Power, and educational mobilization. although not as spectacular as their subdivisions in East Siberia, Yakutsk, and the Far the launching of the first Sp utnik. poses a fo rmidable East, the Novosibirsk branch of the Academy established challenge to the national security of the United States. one an Institute of Mathematics, another for Mechanics,and that is fa r more threatening than any in the past and one others for Physics, Hydrodynamics, Automation, Geol­ that will be much more difficult to meet. ogy and Genetics, Economics and Statistics, and a com-

EIR May 27, 1980 Special Report 2S puter center. Around the institutes, 18 in all, an industrial city was built. Academician Lavrent'ev, Novosibirsk's fo under and first settler, heads the Institute of Hydrodynamics. He has done work on the theory of cumulative (directed) explosions since the 1940s, and contributed substantially to Soviet weapons development during World War II. He once made the observation that "modern science cannot develop without a large industrial base." That is the thinking that produced Novosibirsk. When the project was first launched, scientists found that, as their theoretical breakthroughs were tuned to­ ward application to industrial processes, the factory workforce drawn from around Novosibirsk could not immediately assimilate the new technologies. The scien­ Can we restore tists themselves were therefore continually drawn into engineering and technical experimentation and away West Point's from basic theoretical wook. To solve the problem, Lavrent'ev drew up a program for creating experimental pilot-plants to test the latest tradition ? technologies, and industrial research centers to handle their design and production. This division of labor al­ lowed. scientists to concentrate on basic research, the University of Chicago Professor Izaak Wirszup 's point foundation of the development project. that the average American high school graduate is essen­ To Soviet scientists and science students, Novosi­ tially illiterate in science and math (most particularly when birsk's development has constituted an unparalleled op­ compared to the typical Soviet student) was recently well portunity fo r creative work. At the Institute of Mathe­ substantiated by Dr. Morris Levitt, a fo rmer physics re­ matics, Academician L.V. Kantorovich put his ideas on searcher and teacher who is now the director of the Fusion the use of mathematics in economic planning to practical Energy Foundation. In a guest commentary in the May 14 test. Novosibirsk was planned with the question of im­ issue of the twice-weekly newspaper New Solidarity, Dr. proving the quality oflabor-power fo remost in mind. Levitt recounted the situation at the United States Military The key consideration in massive industrial construc­ Academy at West Point, New York where he hadjust given tion is whether a labor force-drawn initially from a a seminar on ..Fusion Power and its Military Applications" culturally backward, peasant region would be developed at the invitation of members of the physics department. We to the point of assimilating a whole range of new tech­ excerpt that article here . nologies successively brought on line. Therefore, Novo­ ... The situation at West Point that I learned of first sibirsk and the attached Akademgorodok community hand fr om officers in the science faculty is perhaps the (where the Academy institutes themselves are located) most shockin,g aspect of the ongoing collapse of U.S. have been planned and built as cultural centers for the scientific training and capabilities. Compared with the surrounding population. The city now has a popUlation many campus playpens I have visited this year, West of more than 1.5 million, with over 550 libraries, fo ur Point and its cadets at least still look like they should. museums, an opera house, concert hall, a university, and But our nation's most respected institution of higher several technical high schools, all immeaiately accessible learning and national service is also in danger of be com­ to towns and villages within a 200 mile radius via the ing not much more than a Hollywood set. ... Trans-Siberian Railroad. Back in 1976, you may recall that there was a major The Academy itself is made up of 18 Institutes involv­ cheating scandal at West Point. Somehow, an advance ing over 50,000 people, including 21 Academicians, 47 copy of an exam was obtained, copied, and distributed to Corresponding Members, 3,000 scientists with masters a number of cadets. Whether or not cheating went on, it or doctoral degrees, and thousands of engineers, techni­ was alleged that the honor code, which calls fo r reporting cians and students. The commmunity has been made into anyone else known to be violating the rules, had been a national science training center that attracts some of seriously breached. The whole incident had a most pecul­ the most promising students from all over the country. iar odor about it, because grade-grubbing is normally Every third person in Novosibirsk is a student, and alien to cadet and military life since professional ad­ other centers modeled on Akademgorodok are now vancement is very rarely linked to purely academic ac­ being built elsewhere in Siberia. complishments.

26 Special Report EIR May 27, 1980 geometry, dynamics, thermodynamics, and chemistry which laid the basis for modern science, as well as the outstanding officer cadres responsible for the military defense of the Republic; West Point was the source of the first science textbooks in America and the engineering corps that built up our vital inland waterways. West Point is the last bastion to fa ll in a war offensive against American science and republicanism that started in the second half of the 1960s. At that time NA TO 's Club of Rome and its environmentalist spawn killed off our two pace-setting science programs, space exploration and nuclear energy, and the Aquarian kook-dominated National Science Foundation replaced the scientific core of the educational system with the New Math and Mal­ thusian drivel. ... What has been the net result? Look at it from top to bottom. A few of our oldest scientists, like Edward Teller, are trying to push fo rward basic energy and military research against increasing odds. Our many Dr. Levitt address officers and cadets at West Point. talented and dedicated senior scientists have managed to maintain a significant level of progress in fusion and weapons systems, but with no present prospect for bring­ However, a team of "reformers" immediately de­ ing on line in the 1980s the most advanced types of scended upon the Academy to "clean things up." Their systems that the broad-based Soviet effort brings closer recommendation? Improve the ethical standards by up­ to realization every year. Below that level, the opportun­ grading the liberal arts curriculum and smashing the ities fo r fruitful scientific work continue to shrink, mani­ science and technology requirements. The traditional fe sted by the continuing fa lloff in science training at all military faculty opposed the "reform"-which was said levels fr om postgraduate down to the hideously deprived to be largely inspired by a professor from Kook Tech public schools. The All Volunteer Army is now 60 per­ (also known as Princeton)-but to no avail. cent comprised of individuals who are not high school The result? Whereas in the past every cadet was graduates, but who are generally well schooled in the required to take at least three semesters of physics and a ways of drug use .... course in electrical engineering it is now possible to Perhaps one finalane cdote from West Point summa­ graduate with just a sniff or two of science. Many cadets rizes the whole situation. An offi cer on the science faculty are doing just that, concentrating in a series of courses who recently se rved a tour of duty with the Brazilian dubbed "the poets and lovers" curriculum by the tradi­ Army recounted the fo llowing story. The officers of the tionalists. Therefore, it is now possible for a West Point Brazilian Army are selected from the top of the intellec­ graduate to get some sensitive organ shot off by a laser tual elite of the country. Their service is viewed as a beam on a distant electronic battlefield, without even hallmark of honor. The enlisted men also consider Army knowing what the offending gizmo was called, let alone service to be a great honor, and in fact it offers much how it works! better educational and training opportunities than most The physics fa culty meanwhile is desperately trying any other employment. Officers and enlisted men also to cope with their new orders to cram mechanics, elec­ have a concrete sense of purpose through the army's role tromagnetism, and modern physics into just two semes­ in engineering and construction projects to build up the ters. Predictably, the ranks of science majors and physics infrastructure of their country. concentrators is rapidly dwindling. America, what out­ One day, however, the West Point officerrec ounted, rages you permit against your best traditions! Don't you two enlisted men in his unit were caught in possession of know that West Point was the firstma jor scientific and some marijuana. The entire unit was immediately assem­ engineering institution in the young American republic? bled, and in front of all the officers and enlisted men the Its great commandant of the early 19th century, Super­ drug users were stripped of their insignias and drummed intendent Thayer, was in direct contact with the staff of out of the Army, suffering humiliation and disgrace as the peerless institution on which the Academy was origi­ much fr om the contempt of their fo rmer comrades as nally modeled, the Ecole Poly technique of Republican from their loss of position. France. The Ecole, under the leadership of the great Can we be any less resolute in fighting to restore our scientists Monge and Carnot, produced the advances in country's science and honor?

EIR May 27, 1980 Special Report 27 Mathematics vs. 'New Math'­ how it should be taught by Dr. Steven Bardwell

The multitudes of American parents who have fe lt frus­ whole numbers, both the finite and the infinite ones tration and rage at what passes fo r mathematics in in two senses; however, these are the same two today's schools, the parents who have, in the end, re­ ways, to be sure in which any concepts or ideas can signed themselves to the fact that Johnny can't add, be considered. On the one hand we may regard the unconsciously adhere to a long, continuous line of math­ whole numbers as real insofar as they take up a ematical thought-stretching from the mathematicians very definite place in our mind on the basis of of Plato's Academy, Archimedes, through Nicholas of definitions, become clearly differentiated from all Cusa and Leibniz to the great 19th-century school of the other components of our thinking, stand in German and French mathematicians. This tradition is definite relations to them and thus modify the outstanding for two reasons: first, its members are re­ substance of mind in a definite way. Let me call this sponsible for every essential mathematical discovery in type of reality of numbers their intrasubjective or the last 2,000 years, and second, it has been pitted, since immanent reality. Then again we can ascribe reality its inception, against a contrary tradition in mathemati­ to numbers insofar as they must be regarded as an cal thinking; today's parents are the frontline of that expression or image of occurrences and relation­ fight. ships in the external world confronting the intellect. The New Math is not really new, any more than the This second type of reality I call the transsubjective inspiration for its method is new. Lord Bertrand Russell or transient reality ofthe whole numbers .... and Swiss "child psychologist" Jean Piaget, are the There is no doubt in my mind that these two modern progenitors of the development of the New types of reality will always be fo und together, in the Math's ideas. Both are quite explicit that their aim is to sense that a concept to be regarded as existent in establish a non-Platonic mathematics, based on the the first respect will always in certain, even in methods of Aristotle; both make unmistakably clear that infinitely many ways, possess a transient reality as the fu ndamental issue is one concerning how men think: well .... This coherence of the two realities has its true The 'rational nature' of man is only a derivative. fo undation in the unity of the all, to which we The subject and object of knowledge are separate. ourselves belong as well. ... On this point as on many others' Aristotelean physics marks a return to ordinary thought rather This view of mathematics and science is what the New than a continuation of the aspirations of Platonist Math is designed to destroy. The Platonists have main­ mathematics. tained that mathematics is an empirical science whose Jean Piaget: subjeCt (like that of any science) is what Plato called the Mathematical Ep istemology "hypothesis of the higher hypothesis" and Cantor called and Psychology the "Principle of Generation," both descriptions of the self-developing evolution of the Universe. The Aristote­ On the other side, perhaps the clearest statement of the lian opposition has counterposed the view that mathe­ Platonic view is given in a paper by the fo under of the matics (along with the other sciences). is a logical struc­ real theory of sets, Georg Cantor: ture, lacking any essential connection to reality, and We can speak of the reality or the existence of the merely a product of the human mind, a mind which in

28 Special Report EIR May 27, 1980 their view has itself no essential connection to reality. (This psychology is obviously self-validating, as the in­ sanity of many of the most illustrious of the latest gener­ ation of mathematicians testifies). ",ExerciSes " The fight between these two views in the 20th century Llstthemembersofs,etAand'ofsetB., has taken place over the basic concepts of arithmetic Then,iteUit', B i� a subset of, A; numbers and arithmetic operations. The biggest guns of the Aristotelian faction have, in fact, been aimed at overturning the explicitly Platonic significance of the concept of number developed, as both sides recognize, by the discoverer of set theory, Georg Cantor. Bertrand Russell spent ten years of his life producing a three volume book, Principia Mathematica, which he hoped would show that mathematics could, through the use of set theory, be reduced to logic. He failed, but his book became the model for three generations of fo rmal logical mathematics to be used against Platonic methods in mathematics. On the pedagogical side, Jean Piaget took Russell's work and developed a theory of number and the concept of number which he claims purifies Cantor of his Platonic excesses ! The new math is the fr uition of the Piaget-Russell attack on Platonic mathematics . Its incoherence, self­ evident sterility, and destructive effect on children's minds are not accidental-this is the essence of the Aristotelian theory of mind.

Two examples There have been many attacks on the New Math, but its epistemological significance remains largely un­ known. The destructiveness of the New Math is clear fr om two examples taken from its curriculum which have escaped the notice of critiques of New Math from con­ ventional or practical standpoints; I want to concentrate on these here. The first is the concept of an "algorithm" which is used as the basis for teaching arithmetic opera­ tions, and, second, the New Math concept of the struc­ ture of the number system. FIGURE 1 Set theory vs "set theory" 1. Algorithms and arithmetic The new math is well known for its love of set theory, An algorithm is a set of rules, usually recursive, for as exemplified by the above diagram from a first grade performing some task and for testing for the completion workbook illustrating the idea of number as a property of the task. The concept of an algorithm was a product of sets of arbitrary objects. However, the set theory of the development of machines which had to be "pro­ taught in the new math is diametrically opposed to the grammed" with instructions for the actions required of concept as developed by its inventor, Georg Cantor. As Cantor makes clear over and over again, a set is not an the machine. The punched cards that controlled early arbitrary collection; it is defined by the "rule" which spinning and knitting machines are classic examples of determines membership in a set. There are real sets and an algorithm-move needle A to position 1, needle B to collections which are not sets. Cantor put into mathe­ position 2, move the red thread over needle 1, etc. matical form, with his definition of sets, the essentially Obviously, an algorithm is a powerful tool if certain Platonic idea of a universal-a "set" is a higher-order conditions are satisfied: concept, not a simple aggregation of objects. The new math, based on Russell's bowdlerization of set theory, I) The problem to be solved or task to be per- . turns the whole concept into a nominalist game. As the formed is completely posed beforehand; above picture shows, any collection can be a set even if 2) The problem can be solved in a finitenu mber the "rule" for membership is a totally arbitrary one. of steps;

EIR May 27, 1980 Special Report 29 3) The quality of solution does not depend on STEP 1: Is 8 larger than 90? If yes, then quotient is factors known only after the algorithm is begun 0; otherwise go to STEP 2. (for example, singularities are excluded); STEP 2: Subtract 8 from dividend. Add 1 to quo­ 4) The rules for performing the algorithm are tient. fixed or drawn from a fixedgroup . STEP 3: If 8 is larger than dividend then end;

These assumptions are finefor a machine or a computer, but they are all violated by the simplest task required of The algorithm which he proposes counts the human mentation! No algorithm could be written for number of times that the divisor (8) can be subtract­ something as simple as getting out of bed (or getting ed from the dividend (90)-this number of times is your kids to school) in the morning. the quotient (11). This method is used, in actuality, In spite of this obvious fact, the algorithm has been only by the crudest of mechanical calculators­ taken as a prototype of mathematical thinking by the even computers have better ways of dividing! Aristotelians and incorporated in the New Math as the Is this algorithm even division? Let's try it on way of teaching arithmetic operations like addition and the problem of 4 divided by 12-the answer, ac­ subtraction. From a psychological and pedagogical cording to one student is -8. Certainly not. From standpoint this is absurd. Since people are not machines a mathmatical standpoint, division is qualitatively they perform tasks differently and they learn them differ­ different from subtraction-it is not compounded ently. In the same way, this method is absurd mathemat­ subtraction, unless, of course, you are a mechanical ically; arithmetic operations are only fo rmally reducible calculator. Subtraction of whole numbers, no mat­ to algorithmic techniques. They are actually synthetic ter how many times it is performed, always pro­ concepts, higher order concepts, and, when reduced to duces whole numbers; but division, takes whole their algorithmic counterpart, cease to be mathematics. numbers and produces a new kind of number-a Long-division, long the terror of elementary children rational number, or fraction. One can never get students, provided fertile ground for the New Math's fractions from subtraction of whole numbers. algorithmic theory of arithmetic. Presented with the This reduction of division to an algorithm in­ problem of dividing 90 by 8, the New Mathematician will volving repeated subtraction is not merely a math­ tell us the following (of course, he probably won't ac­ ematical travesty. The subject of mathematics, as tually do the division this way-but this is what he says all great mathematicians have known, is not num­ to the kids): bers and their manipulation; it is the human Ittind

FIGURE 2 Division as repeated subtraction The algorithmic approach to arithmetic shows its impracticality and its inaccuracy in this figure taken from a fo urth grade new math text. The diagram is an at­ tempt to show how long division can be done by counting the num­ ber of subtractions of the divisor from the dividend.

30 Special Report EIR May 27, 19&0 as a mirror of the Universe. Mathematics, as a product of the human mind, both reflects and modifies the structure and evolution of the Uni­ verse. Cantor says that this connection-the "unity of the all" -is mathematics. Since neither the hu­ man mind nor the Universe satisfiesany of the four prerequisites fo r the applicability of an algorithm, to teach algorithmic thinking as if it were mathe­ matics is to systematically distort both reality and human mentation. No wonder children hate the New Math-to understand it, they must deny the fundamental characteristic of their ability to think! Let there be no mistake; the Aristotelian faction of mathematics agrees about the implications of algorithmic thinking. They only disagree about the inapplicability of algorithmic methods to the mind and the Universe. Their premise is that the laws governing both human thought and the Universe are fixed. Of course, they say, algorithms work precisely because human beings and the Universe are machine-like.

2. The Structure of the Number System The problem of long division raises a more funda­ FIGURE 3 mental problem in arithmetic; the New Mathematician's The number line reply to my objection that his algorithm for long division could not generate fractions (because subtraction of Contrary to the implication of the new math, the number line (the continuum) has a subtle and important whole numbers can only generate whole numbers) would structure. All numbers on the num ber line are not the be the following: I can provide you with an algorithm same, and, as Cantor stressed, the generation of one that is too simple, but just because subtraction doesn't kind of number from a simpler one is a prototype not give you fractions, doesn't mean that there is no algo­ only for all mathematical reasoning but also for the rithm for doing so. evolution of the universe. The real argument here is not over an algorithm for long division, but rather, over the significance of these new numbers generated by division. Any qualitative Generation which creates a new level of hierarchy out of significance of division comes from its ability to generate its predecessor. This transition from one level to the next these new numbers (fractions). The Platonic approach to (like from the whole numbers to the rational numbers) is mathematics has maintained, as Cantor and Dedekind lawful but there is nothing in the lower level that deter­ were the first to show, that fractions (rational numbers) mines beforehand its successor. The Principle of Gener­ are a qualitatively different kind of number than whole ation in mathematics has been called "negentropy" in numbers. In addition, Cantor showed that the number physics-but they are the same. system is, in fact, a nested hierarchy of different kinds of By his algorithms, bastardized set-theory, and the numbers, each of which is generated from the preceding like, the New Mathematician denies the qualitative struc­ by inherently nonalgorithmic processes like limits of ture of the number system. The crux of the Aristotelian infinite series. To get irrational numbers from rational approach is that the Platonic hierarchy does not exist. ones, for example, requires a complicated geometrical Russell's book was an attempt to prove the qualitative argument that demands new mathematical rules for new homogeneity of mathematics-to prove that it was in numbers. toto reducible to a fixed set of logical axioms. If he had As Cantor points out, the significance of this hierar­ been successful, it would have been possible to build a chical structure of the number system far transcends its computer which could prove every existing theorem in mathematical applications. It is parallel to-a model mathematics and every theorem ever provable! He was of-the similar nested, hierarchical structure of the phys­ not successful, but not because of any shortcoming of his ical Universe. Cantor showed, even more, that the fun­ attempt; it is just that he and his New Math disciples are damental feature of this hierarchy was not its structure at wrong about the nature of the human mind and physical any one instant, but rather what he called the Principle of universe.

EIR May 27, 1980 Special Report 31 Brown and Muskie put the screws on Europe

by Susan Welsh

At the Brussels meeting of NATO defense and foreign committed to confrontationist policies as it was before ministers this week, U.S. Secretary of State Edmund the cabinet crisis. Scheduled to meet with Soviet Foreign Muskie and Secretary of Defense Harold Brown sought Minister Andrei Gromyko May 16, he announced that to pressure Western Europe to go along with Washing­ the talks will merely be a "fencing exercise ... I'm here to ton's policy of confronting the Soviet Union with a findout if Moscow is prepared to meet minim urn require­ "paper tiger" Chinese-style military strategy. They de­ ments in resuming detente." Muskie dismissed a propos­ termined to fo rce Europe to break off what remains of al made May 14 by the Afghan government for with­ detente, and to extend NATO outside its treaty-mandat­ drawal of Soviet troops in return for American promises ed boundaries to the Third World, encircling the Soviet not to finance rebel activities there. Union with hostile states. The Secretary of State, in his discussions with NATO While the U.S. did not officially propose such an foreign ministers, demanded that they fully implement extension of NATO due to stubborn opposition from economic and political sanctions against Iran by May 17. particularly West Germany, this was the subject of inten­ The European pledge was made before President Carter's sive behind-the scenes arm twisting (known as "bilateral abortive Iran raid, and was seen by many European consultation"). Before the Brussels meetings convened, leaders as the only way to prevent U.S. military action. Secretary Brown visited Rome to line up support for When Carter launched the raid, many in Western Europe NATO deployments into the Indian Ocean and the Per­ concluded that the terms of the deal had been broken, sian Gulf from Italian Prime Minister Cossiga. Brown and began to look for ways t()wa ter down the sanctions. admitted in an interview to the daily II Tempo, which has Muskie also demanded th� Western Europe stop its been blacked out in the U.S. press, that the United States efforts to build an independent Mideast peace initiative, has secretly requested such deployments of each of its since this would "endanger · the Camp David agree­ major allies, and insists that the allies "show the flag" in ments .... I think it would be a very poor time to in any the Indian Ocean and the Arabian Sea. way divert attention from that process." Following the NATO meetings, Brown expressed satisfaction that his program would yet be implemented. Europe stalls "We have had the rhetoric, and it has been good. We've The Europeans' reaction to Brown and Muskie was had the beginning of the concrete steps, and the signs are to stall, agreeing to a strongly worded condemnation of that the longer term steps will also be forthcoming." the Soviet invasion of Afghanistan, accepting certain Edmund M uskie, in his first diplomatic mission as short-term military measures to bolster U.S. capabilities, Secretary of State, made it clear to Europe and to the but deferring longer-term decisions until the December Soviet Union that the Carter administration is as fully meeting of the Allied Ministerial Council.

32 International EIR May 27, 1980 West German Defense Minister Hans Apel has re­ peatedly rejected any deployment of the West German army outside Europe, and sources in his ministry said this week that the Federal Republic of Germany will The fm al communique send no ships into the Mediterranean. The three ships it has presently en route to the Indian Ocean are on a The communique issued by the NATO Defense "routine training mission," will not participate in any Planning Committee May 14 declared in reference maneuvers with other units, and in case of crisis have to the Soviet invasion of Afghanistan that "the orders to return immediately to their positions in the stability of regions outside NATO boundaries" was Atlantic. West Germany will refuse to provide logistical of "crucial importance" to the member countries, support to the United States for transport of troops although not an area of Alliance responsibility. anywhere outside Europe,sinc e "this would violate exist­ This is the firsttime that a NATO communique has ing political agreements," the sources said. described an event occurring so far from the NATO But Europe is finding itself with less and less maneu­ region as having such a serious effect on the secu­ vering room. Although fearful that the Carter admini­ rity of the alliance. The comm unique reads, in part: stration's "incalculability" will lead to World War III, "Ministers expressed their concern that for the the leaders of West Germany and France have held back first time in the postwar era the Soviet Union had fr om any intervention which would radically reorient used military force to impose its will on a nona­ American policy towards global economic development ligned country of the Third World and in a way and away from military bluff. The most active "interven­ which affected the overall strategic situation. tion" into U.S. politics has come from Great Britain, "Ministers denounced this use of force, whlch seeking to fill the "vacuum" created by Carter. jeopardizes international peace and stability and The stalling tactics of continental Europe drew sharp strikes at the principles of the United Nations criticism from the Soviet Union this week, which fears Charter, and called for the total and immediate the consolidation of a Washington-Europe-Tel Aviv-Pe­ withdrawal of all Soviet forces from Afghanistan. king axis. As the Warsaw Pact met May 14, Commander "The people of Afghanistan must be free to Marshal V. Kulikov announced new measures for tight shape their future without outside interference." centralization and combat-readiness to make possible a Following the NATO session, U.S. Defense permanent mobilization capability. Radio Moscow com­ Secretary Brown compared the SoViet Union to mented on the NATO meetings: "It is hard to recall a Nazi Germany. "I would offer fo r your considera­ NATO meeting which took place in such an alarming tion the analogy of the 1930s," he told a press atmosphere ... There is a psychological attack by the conference, "Those were also dangerous times. United States on its allies . ... It is trying to intimidate They went frQm danger into war through a lack of them with the consequences of what would happen ifthe resolve and a lack of willingness to face up to the allies departed from solidarity ... Western Europe fol­ threat." lows reluctantly and with reservations. But the fact re­ mains that they fo llow. However, they may find the price is too high for them. U.S. policy might lead to the brink annually (at U.S. insistence), the United States has had of a big war in which entire countries would burn up." to resort to fraudulent accounting techniques to achieve such an increase. The Carter administration knocked a NATO's "military buildup" few million dollars off the FY 1980 defense budget so The measures adopted at the NATO sessions, while that the new FY 1 981 could register a 3 percent riser significantpol itically, are a joke from the standpoint of More serious, however, is the U.S. Defense Depart­ war-fighting ability versus the Soviet Union. The minis­ ment's "Chinese" approach to military technology. Sec­ ters agreed to increase stocks of ammunition and trans­ retary Brown recently issued a confidential memoran­ port aircraft in Europe and to speed up deployment of dum citing the disastrous condition of the U.S. Air new wea pons, so that Europe can shoulder more of its Force, according to the London Guardian May 12. Air own defense in case U.S. troops are sent to the Middle force planes spend between one-third and two-thirds of East. But European leaders in Brussels privately ques­ their lives out of order; the F -IllD can only stay in the tioned whether the United States could live up to its own air fo r 12 minutes before a breakdown I part of the arrangements in view of the depletion of Brown's solution? An abandonment of technology American reserves under the All-Volunteer Army. which is "too complex" to be operated by low-skill Whereas the NATO meeting reaffirmed the pledge of operators, in favor of "more practical weapons that we each country to increase its defense budget 3 percent can buy in greater quantity." Bows and arrows, anyone?

EIR May 27, 1980 International 33 II Tempo explained that the purpose of Brown's visit to Europe is to convince the allies that the United States must shiftfo rces fr om the Mediterranean to the Indian Ocean, Brown, Luns say Europe which means that Europe and particularly Italy must be will back U. S. adventures prepared to intervene in the Indian Ocean too. Brown will tell the allies at the NA TO meeting in Brussels, according NATO is going to have to make plans to replace to II Tempo, that a part of the U.S. military budget will be American troops in Western Europe in case the United designated fo r military expenses in the Southwest Asian States decides to commit additional forces to the Persian theater, and that consequently Europe and Japan will have Gulf, said NATO Secretary General Joseph Luns in a to accept an increasing role. May 6 Washington, D.C., speech. A special NATO

committee will probably be formed to draw up contin­ Brown: This request has been made confidentially to all gency plans "in case the Soviets grab the Gulf oil." . the European allies in secret communications between "The countries in Europe might well have to shoulder the European governments and the U.S. But now the a heavier share ... to take up the slack .... If the Soviet U.S. is officially placing the question on the table with Union really would not shrink from world war, we will the urgency which is dictated by the continuing global get that world war one day," Luns said, adding that he confrontation. believed the Soviets would not risk the "unacceptable II Tempo: It is significant that Brown wanted to inform losses." the Italian government first on such plans.

Th e Italian daily II Tempo published an interview with U.S. Defense Secretary Harold Brown May 12, in which Brown: The aim of my visit to Rome is to convey to the Brown admits to secret discussions with the leaders of Prime Minister and the Defense Minister the deep appre­ NA TO countries on the deployment of NA TO fo rces out­ ciation of the U.S. government and people for the many side their treaty regions of Europe and the North recent initiatives of the Italian government and people in Atlantic. this moment of serious difficulties. Italy has shown itself

Council" whose deliberations "were not a matter for But We st Germans say public knowledge." they will not Informed military quarters in Bonn confessed them­ selves "extremely astonished" by the statement attribut­ Th e fo llowing wire fr om the West German DPA press ed to Luns. Hitherto nobody in NATO knew anything of agency May 7 was monitored by FBIS: this, it was stated. What Luns is reported to have said "cannot be correct." As far as the Federal Government knows, the United "There is no reason for Luns to say this," it was States does not plan to withdraw troops fr om the Federal argued in Bonn. It can only cause confusion in the Republic. Speaking at a press conference in Bonn today Western alliance. There can be no substitute for U.S. in connection with statements by NATO Secretary Gen­ divisions. It is conceded that a situation might arise "in eral Luns about a possible movement of U.S. troops which one is subjected to increased demands." fr om Europe to crisis areas in the Middle East, State The remark attributed to Luns that the German Navy Secretary Boelling said that, according to the impression might assist the United States in strengthening its mili­ in Bonn, this could "by no means be the case." Boelling tary potential in the Indian Ocean is also strongly denied. conceded, however, that he cannot "enter into discussion "Nobody has authorized Luns to make such of the overall subject ..." statements," it was said in Bonn. There will be no Ger­ Boelling added that there has been little time to man presence in the Indian Ocean. examine Luns' statement "very precisely." It is his "reli­ able impression" that maybe as a result of the reports the West German Defense Minister Hans Ape/ gave an inter­ "mistaken impression" has arisen that the United States view to Deutsche Welle radio May 7, monitored by FBIS: is considering the transfer of units stationed in the Fed­ eral Republic. Some thoughts on this subject matte'r had Q: Mr. Minister ... you said in one of your last speeches: "of course" engaged the Federal Government's attention There is no national security without international secu­ some time ago and "have been the subject of information rity. Does that not mean that in the fu ture NATO will as well as of talks within Germany's Federal Security have to defend the security of its members beyond the

34 International ·EIR May 27, 1980 to be among our most solid allies and we will not forget this. Italy showed courage in joining in the decision to modernize NATO's nuclear fo rces so that the disadvan­ tage due to the increasing number of Soviet medium­ West Germany range weapons aimed against Europe could be over­ come. Italy, although it faces a difficult economic situa­ tion, is determined to reach the goal of 3 percent increase A vote in the Ruhr for in defense expenditouresin real terms .... A large portion of the increased expenditures planned Schmidt and peace n the U.S. military budget for the next fiveyears is to be used in Southwest Asia. In Brussels we will discuss how by RanierApel to implement this new division of expenditures. II Tempo: In plain English, Brown said not only South� West German Chancellor Schmidt's Social Democratic west Asia but also adjacent areas, meaning an extension Party (SPD) won a major victory in May 11 elections in of the NATO countries and Japan outside their areas of the state of North Rhine Westfalia, where more than competence. This means NATO must not limit its activity one-third of Germany's electorate lives and works. The to a strictly definedgeographical area. returns are considered an important setback to the am­ bitions of Bavarian Franz Josef Strauss, who is sched­ Brown: The military contribution must also include an uled to be the joint chancellor candidate of the opposition increase in naval fo rces, meaning that the allies must Christian Democratic Union and Christian Social Union show the flag in the Indian Ocean and the Arabian Sea parties in this October's national elections. . .. The U.S. will undertake the largest part of this The victory ofSPD candidates in this Ruhr industrial military increase, and this could make it necessary to area represents a clear mandate for Schmidt's war-avoid­ move part of our forces from other theaters toward that ance, detente-oriented foreign policy, and his govern­ region, for example to periodically move our aircraft ment's continuing refusal to collaborate with the Carter carriers from the Mediterranean to the Arabian Sea. administration's military posturing in the international arena. Overall, the SPD gained 3.3 percentage points in the vote, raising its seats in North Rhine Westfalia's parlia­ treaty area in other parts of the world? ment to 49 percent. The Christian Democrats lost 3.9 A: Let us view the current situation quite soberly. What percentage points, while the Free Democratic Party, are the reasons for our concern? We are concerned about Schmidt's coalition partner at the national level, suffered Soviet expansion, about the improvement of the Soviet a 1.8 percent decline, failing to qualify for "major party Union's strategic positions. By the way, it cannot be status." Now below the minimum five percent level, the shaken out militarily: Afghanistan is topographically in FDP must leave the state's parliament. Analysts agree such a location that nobody can go into action there even that some of the SPD gains came directly at the expense ifhe wanted to. Second, there is the concern of endanger­ of "migrant voters" fo rmerly committed to the Christian ing our oil supply. Third, the hostages must be freed Democrats. alive .... Significantly, the so-called Green Party-the envi­ NATO would totally overstrain itself if it wanted to ronmentalists and radicals-also failed to gain the mini­ solve the problems. At best, NATO can contribute if the mum five percent to qualify fo r seats in the state parlia­ Americans say: we are more deeply involved somewhere ment. A significant Green vote had been counted on by else, you must relieve us in Central Europe. Chancellor Schmidt's enemies, including Christian Dem­ ocrat leader Kurt Beidenkopf and Strauss, to weaken the Q: In addition, the Army will face a special situation if chancellor's governing coalition. But the SPD suffered and when NATO is called upon to share in worldwide no net loss of votes to the greenies, whose minimal gains responsibility, namely, the situation resulting from the at the expense of the Christian Democrats and Free partition of Germany. Democrats still left them at only three percent. A: The point at issue is not just Germany's partition. In at least this key state, therefore, the policy of What matters is that our basic law says in no uncertain ·Strauss and Beidenkopf to build the Green Party has terms and without any contradictions: The Federal Re­ floundered. This policy was actually worked out for the public has, and is allowed to have troops for defensive two opposition leaders in the United States in February, purposes, for home defense. And this makes it absolutely when Strauss visited America fo r one week of top-level clear in legal terms that a Bundeswehr mission outside of meetings with Carter administration officials and geo­ Europe just cannot take place. political specialists at the Jesuit Georgetown University;

EIR May 27, 1980 International 35 The sole topic was how to topple Helmut Schmidt in This Georgetown faction in the CDU is evidently not order to reduce West Germany to a subservient vassal of confining its campaign against Chancellor Schmidt to Anglo-American policy within the NATO alliance. mere parliamentary and electoral opposition. The Green Building the environmentalist kooks of the Green Party Party is being used as shock-troops in the streets to into a "major party" in parliament at the expense of the destabilize and split the "left" enyironmentalist wing of SPD and 'FDP was to have been a principal tactic. But the SPD out from under the Chancellor. Exemplary were not only did the greenies fail to grow significantly; street riots in the city of Bremen May 6 on the occasion Schmidt's SPD won new support from traditionally of the 25th anniversary of West Germany's membership Christian Democratic Catholic workers in what were in NATO. What started as a "peaceful demonstration" considered that party's bastions of support. sponsored by the Lutheran Church-in which a powerful Beidenkopf, who became Christian Democratic chief influence is the "black noble" von Bismarck family, in North Rhine Westfalia upon the death of Heinrich whose Philipp heads the CDU Economic Council­ Koeppler in the middle of the election campaign period, erupted into violent clashes with the Green Party in the and proceeded to suffer the past week's defeats, is one of lead, leaving 25 policemen injured. Strauss's most prominent supporters at the fe deral level. As the newspaper Die Zeit wrote even several months It is widely recognized, moreove, that the defeat was due ago, it is very possible that Strauss intends to base his to Beidenkopfs "American way of politics" (i.e., support electoral campaign not on industry or labor support, but for the Carter administration) in the eyes of Ruhr voters. on public riots, tax revolts, and youth protests organized In Germany, there is no one more "American" in that by his own "Green Party" team centered around Bieden­ distasteful sense than Franz Josef Strauss. kopf and the von Bismarcks. One pressing question after the North Rhine West­ Is Strauss viable? falia elections is that of the future of the Free Democratic The defeat of the Strauss fo rces has raised publi,­ Party. The party's importance, despite its size, is that its questions about whether Strauss's own ambitions for the support has given Schmidt the margin in the Bundestag chancellorship might be at an end. Questions about the (federal parliament) required to rule. viability of the Strauss candidacy were reportedly raised The "party crisis" created by the North Rhine West­ at the presidium meeting of the Christian Democrats on falia defeat, however, may be used by some forces to May 12 in Bonn. They were immediately shoved aside, attempt a transformation of the Free Democrats in a however, by the CDU's leadership group, dominated by populist, Green Party direction-and in fa ct, pro-Strauss such tools of Georgetown as Leisler Kiep, Ernst Albrecht currents in the FDP came out of the Ruhr defeat with and Philipp von Bismarck, who conjured up "the need warnings that it should now distance itself from the for inner party solidarity." Chancellor's SPD. Similarly, at a press conference held jointly by the In fact, although allied with Schmidt, the zero­ CDU leadership and Strauss's Christian Social Union growth policy thinking of such agencies as Georgetown (Bavarian), it was announced that there would be no and NATO's Club of Rome has had a significantimpa ct change in the party's "new policy"-unquestioning soli­ in Free Democratic Party ranks-enough to make it part darity with the fo reign policy of the Carter administra­ of the drug legalization movement in West Germany, for tion, increased military expenditures as per NATO re­ example. If such policy orientations become strength­ quest, and a domestic policy centered around "the prob­ ened in the wake of the Ruhr elections, the FDPcould be lems of the young" -that is, building the Green Party­ on its way out of Schmidt's coalition and into an alliance as well as a populist tax policy, etc. with Strauss. The policy is considered "new" because, traditional­ However, that appears to be a fragile prospect, if ly, the Christian Democrats have been the party of Schmidt's party does what now appears well within its industry and economic growth. The Strauss supporters capability. A majority of the West German electorate is at the CDU's healm, however, are as totally committed showing that it identifies with the German Chancellor. to Club of Rome-NATO economic policies of zero­ Schmidt is moving into a position in which he will be able growth as to NATO-Carter fo reign policy postures. to conduct a head-on political fight with the "green" With a strong base oriented to industrial growth and wing of his own party around former chancellor Willy East-West detente still remaining in the Christian Dem­ Brandt, now party chairman. In that event, the move of ocratic ranks, the Strauss-allied leadership must avoid the Catholic labor vote into his camp which provided the any concessions to the anti-Strauss ferment, for fear of SPD with 49 percent in North Rhine Westfalia, could be encouraging a revolt. All the more after the Ruhr elec­ accelerated, giving Schmidt even an absolute majority at toral defeat, Strauss's main objective is to crush the the federal level come October. What need then oflabile traditional Christian Democratic policy orientation. Free Democrats, always the government's weak flank?

36 International EIR May 27, 1980 EIR-that the Cossiga government is a coalition of terrorists. Senator Donat Cattin, more than perhaps any other Italian political figure,was responsible for putting Italy Cossiga back in power, in coalition with the Socialists. At the February 1980 DC Congress, Donat Cattin blocked with the Cossiga forces in the party to muscle Will Cossiga survive the fa ction led by Giulio Andreotti out of power. The Andreotti group had led Italy into a close political new terror scandal? alliance with ChancellorSchmidt of the Federal Republic of Germany and President Giscard d'Estaing of France by Jeffrey Steinberg in creating the new gold-backed European Monetary System and in conducting a coordinated international A political civil war has broken out in Italy following crackdown against the "citizens above suspicion" who public revelations that the "godfather" of the present run terrorism in the NATO countries. Cossiga government is linked to the terrorist assassina­ Senator Donat Cattin's actions at the DC Congress tion of a leading Italianjudge and possibly to the kidnap­ were backed up by the Trilateral Commission-owned ping-assassination of former Premier Aldo Moro. While Carter administration. According to one highly placed it is impossible to predict at this time what the outcome source in the DC, former U.S. Secretary of State Cyrus of this series of startling revelations will be, or what Vance arrived in Rome on the eve of the Congress with arrestsand counter-arrests will be made, it is now firmly "a suitcase full of money and a gun" -with orders to see established that the evidence published in the November a Cossiga-PSI coalition installed in power. For Vance, it 1978 European Labor Party dossier, Wh o killed A/do was a quieter version ofthe more bloody coup d'etat that Moro, is true. he ran in Greece in 1967. That dossier, which has shaped the efforts of anti­ What was the ruling coalition that Vance ushered terrorist forces in Italy since its publication, showed that into power? A government ofterrorists: it was the Italian black nobility, acting through its kept • Prime Minister Cossiga was the Interior Minister servants in the Christian Democracy and the leadership during the Moro kidnapping. Following the discovery of of the Socialist Party, linked as well to Anglo-American Moro's corpse, then Prime Minister Andreotti firedCos ­ and Israeli intelligence services, who ordered and carried siga. The not-so-secret motive behind Cossiga's dumping out the Moro assassination. was the fact that the Interior Ministry had been a pipeline Last week, police in Turin revealed that Marco Donat of information into the Red Brigades on the state of the Cattin, the son of DC Vice-Secretary Senator Carlo Moro investigation. More recent revelations published Donat Cattin, was a leading member of the terrorist in L'Unita and L'Espresso indicate that the Interior underground in Italy, responsible for the assassination Ministry had evidence of Marco Donat Cattin's role in in January 1979 of Milan-based Judge Alessandrini. At the terrorist Primo Linea ("Front Line") group by no the time of his assassination, Allessandrini was about to later than March 1977 and supressed the evidence. name the names of the black nobility (those feudalists • The Italian Socialist Party, presently holding one­ who trace their lineage back to the Roman Empire) third of the ministerial seats in the Cossiga government, behind the Moro killing. is the principal recruiting and control point over the Red The Turin police revealed that they were in possession Brigades, Front Line, the Autonomi and every other left­ of tape recorded evidence of the role of the young Donat radical terrorist cell in Italy. According to testimony Cattin in the Alessandrini assassination and the earlier recently taken from Front Line "military commander" murder of Milan University Professor Galuzzi. Three of Patrizio Peci, following the arrests of professors Negri those tape recordings were of telephone calls that Marco and Piperno on charges that they masterminded the Donat Cattin made fr om the office and the apartment of Moro assassination, Piperno was visited in jail by Gia­ his fa ther! Two calls made from the Senator's apartment como Mancini, a leading PSI mafiosi, and ordered to during the March 1978 period leading into the Moro keep his mouth shut. According to Peci,it was three top kidnapping came well over a year after the DC official leaders of the PSI who ordered the Moro hit and oversaw had "repudiated" his son's terrorist activities by claiming its execution. that Marco had gone underground and had not been This band of terrorists now ruling Italy through the seen by the family for over a year. The taped evidence combined efforts of Cyrus Vance and terrorist papa shows that Senator Donat Cattin was lying. Senator Donat Cattin is the government that U.S. Sec­ The recent Donat Cattin revelations add further retary of Defense Harold Brown described last week as weight to the charges-carried frequently in the pages of "America's most reliable ally in Western Europe!"

ElK May 27, 1980 International 37 The battle for Italy behind the Red Brigades took over the Peci interroga­ A see-saw battle for power has erupted in Italy over tions. Immediately, information came pouring out of the past week, centered around the long-supressed reve­ Peci's mouth that contradicted his 70-page "confession." lations of the Donat Cattin-terrorist connection. It had Peci revealed the Marco Donat Cattin role as an impor­ been the intention of the Cossiga-PSI government since tant regional coordinator of Autonomi, Red Brigade it entered office to bury once and for all the trail of and Front Line activities in the provinces of Piedmont, evidence leading to its collective hand in carrying out the Lombard and Tuscany. He further revealed that the Moro murder (Moro at the time of his murder had been Israeli Shin Beth agency had made contact with the Red the prime mover behind an Andreotti-led "historic com­ Brigades seeking cooperation. promise" coalition with the Communist Party of Italy) Far from being successfully supressed by the Cossiga and other terrorist acts. government, these latest revelations have become front­ Toward that end, Cossiga, et al. launched a campaign page news throughout Italy-particularly the exposure to "prove" that Italian terrorism was purely a local, of the Donat Cattin hand in terrorism. sociological phenomenon, born of social conditions Asthe result ofthese leaked interrorgations, Cossiga­ rather than through conscious, top-do\yn design. Last linked police on May 14 arrested one Qfthe most respect­ month, the Cossiga-linked intelligence services released ed and powerful secret service investigators in Rome, a 70-page dossier-confession by Primo Linea leader PecL Russomano, for leaking government secrets. Peci claimed that the Red Brigades, et al. were purely As the result of these moves and countermoves, the Italian in origin, with no foreign links. He further issue of who really runs terrorism against the Italian state claimed that professors Negri and Piperno were innocent is now before the entire nation. No longer are byzantine of all involvement in the Moro killing. On the basis of maneuverings and backroom deals determining the these fa brications, an Italian judge is presently consider­ plight of Italy. In this respect, the facts first published in ing the 'release of Messrs Negri and Piperno-despite the Wh o Killed A/do Moro now move center stage. Over the existence of powerful contradictory evidence including next weeks, the outcome of this now-raging fight will taped telephone conversations between Negri and the determine for a�l to know whether a band of Trilateral Moro fa mily during the "ransom" phase of the kidnap­ Commission and black nobility backed terrorists includ­ ping-assassination. . ing Cossiga and Donat Cattin will continue to rule Italy; The Peci "revelations" themselves took a startling or whether an Andreotti-centered government commit­ turn during the first week of May when Judge Calogero, ted to an alliance with Schmidt and Giscard will be one of the most aggressive prosecutors of · the forces restored to power.

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38 International EIR May 27, 1980 MiddleEast Iraq leads the Arabs against 'Islamic pact'

by Judith Wyer

Last week Iraqi President Sad dam Hussein conducted a training facilities for the two countries. France will also series of strategy planning sessions with the prime min­ supply equipment fo r two armoured divisions in Saudi isters of Saudi Arabia, Kuwait, Jordan's King Hussein Arabia plus Mirage 4000 fighterje ts. Last week, the head and Palestine Liberation Organization (PLO) leader of the French national police, J. Soulier, arrived in Vasser Arafat. Baghdad in recent months has become Riyadh to advise the royal family on internal security. the rallying point for an alliance to challenge London That same week French Defense Minister Yvon Bourges and Washington's effort to create an Islamic military not only visited Saudi Arabia but conferred with the pact as an arm of NATO against the Soviet Union. leaders of the Persian Gulf emirates Bahrain and Qatar The meetings in Baghdad coincided with the first to discuss French military aid. open British declaration of its intentions to forge the These billions of dollars of French military contracts Mideast Islamic pact. Following talks with President fo llow French President Giscard d'Estaing's historic trip Carter, Britain's Foreign Minister Lord Carrington told to the Gulf this spring, where far-reaching economic and the Washington press that London and Washington political agreements were reached. A key component of were concerned with the "urgent problem" of working French efforts to build up an independent security capa­ out a "defensive arrangement to prevent Soviet domina­ bility in the Gulf is the close relationship between Iraq tion of the Persian Gulf oil region" with the cooperation and India. Following Indian Prime Minister Indira Gan­ of West Europe, and the nations of the Gulf including dhi's return to power this year, Giscard was the first Iran. world leader to visit New Delhi. The Anglo-American elite intends to forge this pact Paris has promoted the policy that Iraq and India on the basis of the Camp David Alliance of Egypt and should be the foundation of an alliance to safeguard the Israel, on the one hand, and the Iranian Islamic regime Indian Ocean from a potential superpower conflict. India of Ayatollah Khomeini. Egypt and Iran are widely rec­ and Iraq are both solid allies of the Soviet Union and ognized in the Arab world as the centers of the clan des­ France has more than any other European nation defied . tine Muslim Brotherhood movement which is the prime Washington by fighting to preserve its normal relations vehicle for spreading Muslim fanaticism throughout the with Moscow. Just prior to France's announcement of region. The process of Islamicization of the region is the new military aid agreements with the Gulf states, London's key bludgeon against moderate Arab countries Giscard held talks with Soviet Foreign Minister Andrei like Iraq and Saudi Arabia opposed to Carrington's plan. Gromyko. Baghdad and its continental European allies recog­ That same week, Iran, India and France announced nize that such a radical Islamicization of the Mideast a far-reaching energy cooperation agreement including represents a strategic threat to the Soviet Union, which increased Iraqi oil supplies to both France and India plus has publicly declared that the U.S. and Britain are behind sharing of nuclear technology. Iraq has pledged to in­ the Muslim insurgents. They recognize that further de­ crease its oil supplies to France from 25 million to 35 stabilization of the area by the Muslim Brotherhood may million tons this year and to increase its oil producing well be the shortest fuse to World War III. It is for this capacity to 4 million barrels a day this year. reason that Iraq and its Arab allies in cooperation with Last month the Baghdad government stunned the France are working to forge an independent Middle East world when it suddenly broke off relations with the peace plan and accompanying security arrangement. Popular Front for the Liberation of Palestine (PFLP) France has become the major western power aiding and the Popular Democratic Front for the Liberation of Iraq and Saudi Arabia. France has concluded $3.3 billion Palestine (PDFLP). This move was the latest example of in military agreements with Saudi Arabia and Iraq. the Saddam Hussein government's effort to shed Iraq's These contracts include the construction of naval and longstanding radical position in the Arab world. The

EIR May 27, 1980 International 39 moderation of Iraqi policy has enabled Baghdad to assume a leading military role for the Arab world. The PFLP and the PDFLP are two of the most extreme groupings within ·the Palestinian movement, which are against any peace settlement with Israel. On the other Iran hand, Iraq, Saudi Arabia, Jordan and the moderate PLO leadership allied to Vasser Arafat have adopted a policy of working with continental Europe to fo rge a firm President Bani-Sadr diplomatic front to break the Camp David agreements, seeking an international consensus for an overall settle­ versus the Mullahs ment of the Mideast crisis inclusive of the recognition of Palestinian rights. The PFLP and the PDFLP represent by Nancy Coker a security threat to the Arab nations of the Gulf not only by virtue of their hardline ideology but their alliance with A behind-the-scenes power struggle is raging in Iran. the Islamic regime of Iran-which has pledged to export At the center of this struggle, whose outcome will revolution to the Arabian peninsula-and their allieg­ determine not only the fate of the hostages but the very ance to the regime of Libya's Muamar Qadaffi. shape of the Middle East, is Iranian President Abolhas­ Following Iraq's break with the PFLP and the san Bani-Sadr. Known as a moderate because of his PDFLP, Qadaffilam basted Iraq for divorcing itselffrom gestures over the past several months to defuse the the confrontationist policies of the so-called "rejection hostage crisis, Bani-Sadr is operating as an appendage of front." Qadaffialso attacked the Baghdad regime for its the Anglo-American faction associated with British For­ "hostile stand towards the Islamic Revolution in Iran." eign Secretary Lord Carrington and former Secretary of Both Iranian and British propaganda have attempted State Cyrus Vance. This faction is at odds with the to portray Iraq's new turn as a matter of the Hussein confrontationist policies of National Security Council government becoming a pawn of Washington at the chief Zbigniew Brzezinski, whose eagerness to resort to expense of relations with Moscow. Iraqi Deputy Prime military intervention in Iran is viewed correctly as a Minister Na'im Haddad during a visit to Kuwait last plunge into head-on collision with the Soviet Union. week told the press that "relations with the United States Over the past several weeks, numerous editorials in are hostile and relations with the Soviet Union are friend­ the Times of London and other British outlets have ly, but at the same time, critical." The next day Saddam endorsed Bani-Sadr and his up-to-now futile attempts to Hussein denounced the provocative U.S. military ma­ form a government. In throwing its weight behind Bani­ neuvers off the coast of Cuba. Sadr and the moderates, the Vance-Carrington crew is Iraq has been the most outspoken critic of the regime pursuing a larger strategic objective that actually runs of Ayatollah Khomeini, condemning it as a stooge of the parallel to the Brzezinski track but stops just short of U.S. in its efforts to take over the oil resources of the going to the brink of war. That objective is the forging of Arab nations. Baghdad's Persian language broadcast a new military alliance comprised of Iran, the Arab oil last month again reiterated the links between Teheran states, and the nations of the Persian Gulf, working in and Washington, and noted that the problem of the coordination with the West, all in the name of "prevent­ American hostages is just a smokescreen: "The hostage ing Soviet domination of the Gulfs oil supplies." problem is a smokescreen intentionally started by these The problem facing the Vance-Carrington faction is two governments" to cover their covert relations. Radio that Bani-Sadr has no political base inside Iran. More­ Baghdad reports on a meeting between the Iranian Am­ over, with the fanatic clergy of the extremist Islamic bassador to Kuwait, Ardakani, and fo rmer U.S. ambas­ Republican Party now in ascendance as a result of that sador to the United Nations, Andrew Young. The report party's victory in last week's parliamentary run-off, Bani­ noted that "the amassing of U.S. troops at the mouth of Sadr is incapable of creating a political base, and has the Gulf poses a direct threat to the Arab countries of the little if any room for maneuvering. Insiders report that region, and not to Iran." should he move at this time to release the U.S. hostages, The British dailies, the Financial Times and the who have become the rallying point of the entire nation Guardian in recent days have caustically attacked the the country will collapse. developing alliance which the French are cultivating with On May 5, the Vii/age Voice leaked that according to the states of the Gulf and has condemned Iraq for associates of Bani-Sadr, the U.S. raid on Iran in April making a bid to become the central power of the region. was aimed at bringing about a coup d'etat against Bani­ What these attacks leave unstated is that Baghdad main­ Sadr by "leading clergy and government officials" in­ tains a friendship treaty with Moscow which is seen in cluding such extremists as Foreign Minister Sadegh London and Washington as a serious obstacle to their Ghotbzadeh, Ayatollah Beheshti of the Islamic Repub­ Islamic defense pact. lican Party, Defense Minister Mustafa Chamran, and

40 International EIR May 27, 1980 fo rmer Foreign Minister Ibrahim Yazdi. According to the Vo ice, these four have backgrounds as activists in the Muslim Student Association in the United States, "a body now . viewed with interest and mistrust in Teheran since it received funding from the American Friends of Asia the Middle East, identified in the 1960s with the CIA." "The planned release of the hostages," the Voice notes, "was part of a process designed to overthrow Bani­ Soviets warn Ohira Sadr." That the U.S. raid on Iran was aimed at toppling on 'China card' Bani-Sadr and bringing into power the lunatic faction around Ghotbzadeh on the one hand, and around the by Richard Katz clergy on the other, is clear. From the start it was Ghotbzadeh, not Bani-Sadr, who was in on the prepara­ Using the sternest tones heard in years, Soviet Ambas­ tions of the U.S. raid, meeting secretly in Paris to work sador to Japan Dimitry Polyanski warned Japan not to out the details of the operation with First Secretary proceed with its planned de facto military alliance with Murphy of the U.S. embassy there. It is interesting to China and the United States and its corollary military note that it was while the raid and coup preparations buildup. Polyanski reminded the Tokyo Foreign Press were in the works that Bani-Sadr firstbegan to sound the Club of the U.S.S.R.'s new naval presence in the alarm publicly of the danger of his being toppled. Pacific-including deployments of nuclear submarines Despite the failure of the raid, and with it the failure armed with nuclear missiles into the South China Sea­ of the coup, the operation achieved a partial "success" in and its new military bases on the famous "four northern that on the eve of the parliamentary elections, the hard­ islands" claimed by Japan. A few days earlier, TASS had line faction associated with extr�mist Ayatollahs Behesh­ condemned Prime Minister Masayoshi Ohira's full sup­ ti and Khalkhali was strengthened considerably, under­ port fo r "Carter's adventurism" in Iran as well as Japan's mining Bani-Sadr's efforts to shore himself up. Earlier, headlong move into a triangular military alliance with Bani-Sadr had been granted by Khomeini the power to China and the United States. appoint a prime minister and to oversee the armed forces The reasons listed by Polyanski for the Soviet military and Iranian radio/TV. But with the upsurge of funda­ deployments reflect how seriously the Soviet Union re­ mentalist fanaticism following the raid, Bani-Sadr has gards the current strategic situation in Asia. Polyanski been blocked by the Ishimic Republican Party in his insisted his government would not tolerate Japan joining efforts to appoint Admiral Ahmed Madani, a moderate, a U.s.-China military alliance, which would have a dele­ as prime minister. The post still remains unfilled. terious effect on the already growing instability in the The fight between the Bani-Sadr moderates and the Korean peninsula and the growing tensions in Indo­ Khomeiniacs peaked with last week's confrontation be­ china. The Soviet Union perceives a cooperative effort tween Bani-Sadr and Ayatollah Khalkhali, known in by the United States and China not only to undermine Iran as the "Blood Judge" fo r his having sent thousands Soviet friends in Asia, such as Vietnam and India, but of people associated with the Shah's regime to their even to destabilize relatively peaceful situations such as death. Khalkhali, defying an order from Bani-Sadr to Korea-all for the sake of producing a pan-Asia military the contrary, told his followers to tear down the mauso­ coalition against the U.S.S.R. Polyanski's speech was leum ofthe fo under of modern Iran, the Shah's father. In aimed at preventing a full consolidation of recent Japa­ the boldest move since his accession to the presidency, nese moves to join the U.s.-China alliance. Bani-Sadr stripped Khalkhali of all his titles, a move that is certain to ignite an intensified round of internecine Chinese threat warfare inside the country. China's menacing posture in South Asia lies at the The precariousness of the situation inside Iran was core of the new Soviet military deployment. Only days underscored by a well-briefed Iranian source who re­ before Polyanski's warning, Pakistani dictator Zia ul vealed that "the reason the hostages were taken in the Haq visited China and received full backing for his recent first place was because the Khomeini regime was crum­ series of military skirmishes with India in the disputed bling," and that the hostages will continue to be held Kashmir region. China itself has built up its troop because if they are released, the Khomeini "revolution" strength in Sinkiang Province bordering on Kashmire will unravel. Last week, Habibollah Peyman, the head of (and the Soviet Union), according to the London Daily the terrorists occupying the U.S. embassy in Teheran Telegraph. A European source reports that China is also who is known to be tied into Israeli intelligence, stated adding more troops on its own border with India. that the hostages would be held "indefinitely, in order to At the same time, China is attempting to destabilize ensure the continuation of the revolutionary process." Indira Gandhi's government by funding and inciting the

EIR May 27, 1980 International 41 Assamese nationalist terrorists who are now depriving gations to China and Japanese economic support for India's shaky economy of 30 percent of its oil. Indian China's military modernization. Two weeks ago, fo rmer opposition factions favored by the Carter administration Japan Defense Agency head Yasuhiro Nakasone, who now threaten to raise a national outcry should Gandhi aspires to be Prime Minister, visited Peking. He was told militarily respond to the sedition in Assam. there by Chinese defense leaders that Japan should dou­ In addition to the pressure on India, Chairman Hua ble its defense spending to 2 percent of GNP and build Guofeng has repeatedly stressed in recent weeks that up exactly those air and naval deployments also being China reserves the "right" to "repunish" Vietnam. urged on Ohira by Washington. According to Chinese Backing up its troops and destabilization activities, press reports, Nakasone replied that Japan and China China has informed Japan and the United States that it had a role to play in preserving the security of Asia and will soon test a 3-megaton nuclear missile with the range that "in that contest it is appropriate that Japan aid ability to hit Moscow. Interestingly, the brains of the China's four modernizations." The first of the fo ur is China missile program, Chien Hsueh-Chien, was a class­ military. mate of Defense Secretary Harold Brown at the Califor­ At the April Trilateral Commission meeting in Lon­ nia Institute of Technology during the 1930s. Chien then don, George Ball made it clear that the first step in participated in the U.S. Army Air Corps during World Japan's joining a NATO-type structure in Asia was for War II and in postwar military intelligence missions to Japan to build up its air and naval deployments in order study Nazi rockets. In 1955 at the height of the Cold to free U.S. fo rces to deploy in the Indian Ocean. Former War, Chien was allowed to leave the United States and foreign minister Kichi Miyazawa, a longtime associate return to China. The technology used in developing the of Ohira's, supported Ball's proposals. new missile comes from satellite launchings, whose fur­ Ohira and his fo reign minister Saburo Okita regard it ther development will be aided by the cooperation agree­ as premature to publicly discuss the steps leading to a mentjust signed between Washington and Peking. NATO structure in Asia-and reportedly are not yet ready to go as far as Saeki and Miyazawa. Nonetheless, A Japanese military buildup Ohira agreed in Washington to the preliminary military China's activities pose a danger to Asian peace pri­ buildup demanded by Carter. Ohira agreed that Japan marily because they have the backing of the Carter would accelerate its defense buildup, with emphasis on administration. Now Carter is putting immehse pressure air reconaissance and antisubmarine deployments on Japan to join in a triangular de facto military alliance against the Soviet Union. Two months ago, Japan first with the U.S. and China. This was the subject of the participated in multilateral naval maneuvers with the Ohira-Carter discussions in early May in Washington United States, Australia and New Zealand. That partici­ and is the premise fo r any military buildup by Japan pation is now expected to become routine. itself. With some qualifications, Ohira essentially agreed A State Department-linked source noted, "This new to Carter's demands on this subject. military buildup is qualitatively different from the vague In Japan, the Carter administration policy is being talk we have heard fo r 20 years of Japan taking on a pushed by Trilateral Commission-associated unofficial growing military role. This means something." The advisers to the Ohira administration. They are led pri­ source also noted the role that Ohira's Pacific Basin marily by Nomura Research Institute head Kiichi Saeki economic concept would play in aiding the military and former Foreign Minister Kichi Miyazawa. Saeki, a developments. Saeki happens to be a key advisor to very close associate of Zbigniew Brzezinski and a long­ Ohira on that policy as well. time official of the London International Institute of Not everyone in· Japan is pleased with Ohira's acqui­ Strategic Studies (IISS), is working closely with Japan escence to Carter. Japan's most powerful business leader, Defense Agency (JDA) officials on military policy for Toshio Doko of the Keidanren business federation, made Japan. According to Japanese sources, JDA officials are a denunciation of military buildup proposals just prior proposing a series of steps, all leading ultimately to a to Ohira's departure for Washington. Such pressure led NATO-type alliance in Asiaincluding China as well as Ohira to deny that he had actually made some of the countries of Southeast Asia and South Korea, presum­ military commitments to Carter that he had made. ably with a new government in the latter. Saeki is spon­ Ohira had already invested a great deal of political soring a June meeting in Tokyo-the Security Confer­ capital in supporting Carter's sanctions on Iran, at the ence on Asia and the Pacific (SCAP)-in collaboration cost of 12 percent of Japan's oil supply. When Carter with fo rmer U.S. Ambassador to South Korea Richard pulled his "rescue" stunt in Iran two days later, Japanese Sneider. newsmen said he had subjected Japan to potential "an­ Already, military cooperation between Japan and nihilation without representation." Nonetheless, Ohira China has begun in the form of Japanese military dele- went to Washington with a license to go along with

42 International EIR May 27, 1980 Carter on oil, military policy, Mexico. Now, the consequences are raising a storm of criti­ cism in Japan. This focuses particularly on the loss of Mexican oil and the military buildup policy. The oppo­ sition parties intend to place a vote of no-confidence against Ohira for his actions in Washington on the military question among others. There are rumors that EIR '5 Frankfu rt conference members of the LDP factions of fo rmer prime ministers Miki and Fukuda-may vote with them. At this point it is not clear if the Miki and Fukuda Planning for India to fa ctions and their business backers intend to try another attempt to remove Ohira realize Nehru's dream

Threat to South Korea A small core of scientific professionals from India and Perhaps the most immediate threat to peace posed by West Europe outlined a detailed blueprint fo r avoiding the U .s.-Japan-China alliance is the current destabiliza­ mass depopulation and world war at a conference held in tion by the Carter administration of one of the major Frankfurt, West Germany May 6 and 7. The conference, Asian opponents of the China card, the government of entitled "The Industrial Development of India-Its Po­ South Korea. It is no accident that Polyanski included tential, Its Necessity," was sponsored by the Fusion the Korean instability as a cause fo r the Soviet military Energy Foundation and the Executive Intelligence Re­ buildup and warning to Japan. view. The student demonstrators in Korea are now de­ The themes of the conference were eloquently manding the ouster of Korean Central Intelligence summed up by K.D. Malaviya, former Indian Union Agency head Gen. Chun Doo-Hwan and Prime Minister Minister fo r Petroleum and Chemicals, the father of the Shin Hyon-Hwack as well as an end to martial law. These Indian oil industry and a close collaborator of India's were not the original demands of the student demonstra­ first Prime Minister Jawaharlal Nehru. "Without peace tions that began one month ago and have now reached there is no develpment," Malaviya told his audience, the unprecendented level of 2,000 off-campus demon­ "and without development there is no peace." strators. The Opposition-supported elements among the The economic program presented as the basis for students received a boost when Carter told Japan's Ohira conference discussion-a comprehensive, step-by-step, that KCIA chief Chun had gathered too much power 40-year plan for developing India from r�lative back­ and then conveniently leaked the remark. wardness to an industrial superpower-was outlined by The student demonstrators' demands are backed by Uwe Parpart, director of research for the Fusion Energy leading opposition politician Kim Kae Jung, who is Foundation, and Daniel Sneider, editor-in-chief of the believed to be favored by whole sections of the U.S. State EIR which published the program. The program itsel,f Department. Kim had made it clear to the State Depart­ has been the subject of detailed discussion in the Far East ment that he regards the current regime as an obstacle to Economic Review as the possible path of economic plan­ the China card strategy for Asia, adding that he himself ning to be chosen by the government of India's Prime will cooperate with the policy. Minister Indira Gandhi. The "human rights" crowd involved in aiding the Despite the obvious importance of the issues to be students from the U.S. are headed by former U.S. Am­ discussed by a distinguished lis'! of conference speakers, bassador to Japan Edwin Reischauer of Harvard and his less than two dozen persons of those who accepted to assistant Edward Baker. The latter works fo r Amnesty attend were actually present. Those conference sponsors International as head of the South Korea section. associated with internationally renowned economist While China's role is not certain, informed analysts Lyndon LaRouche, who designed the economic model believe China is urging North Korean restraint in this used for the development of the India program, reported situation so as not to give the South Korean military a that the systematic campaign waged by Club of Rome credi ble justification for a military crackdown. circles and others to prevent West German representa­ Should the South Korean regime be replaced by a tives of government and industry from speaking and pro-China card government in a U .S.-Japan-China-Ko­ attending was unique to their extensive experience in its rea anti-Soviet lineup, the U.S.S.R. may decide it is scope and intensity. necessary to go much farther than Polyanski did in Malaviya and other conference speakers stressed the warning of the folly of Brzezinski's confrontation increased political courage required from West Europe­ politics. an governments, industry and labor organizations for

EIR May 27, 1980 International 43 effective war avoidance development plans to be realized. the ruralist approach advocated by some political leaders Ganesh Shukla, editor of the influential Indian week­ and world organizations, he was quite clear in his mind ly New Wa ve, told the audience that it was imperative for that nuclear energy used fo r peaceful purposes and eco­ West Germany �o recover its political independence. nomic development would benefit mankind, liberating Unless Western Europe breaks decisively with its Anglo­ them fr om poverty, backwardness and suffering. He had American masters, Shukla warned, it will be obliterated given unqualified encouragement to Dr. Bhabha, our by nuclear war, as famine, disease and chaos create famous nuclear scientist. Our success in the field of mUltiple flashpoints for East-West confrontation. nuclear energy is mainly due to Pandit Jawaharlal Nehru The essential role of nuclear power in breaking the and Dr. Bhabha. constraints on Third World development was stressed by Our public sector, which again owes its growth to other conference speakers, including Prof. Dr. W. Seif­ Jawaharlal Nehru, is expected to occupy commanding ritz of the Eidgenossisches InstitiitfUr Reaktorforschung heights. It is mainly confined to high-capital intensive in WUrenlingen, Switzerlane. Dr. Seifritz presented de­ industries p);oducing capital goods and basic raw mate­ tailed evidence demonstrating that no policy except mas­ rials in certain fields.. .. sive "brute force" development of nuclear energy can Notwithstanding huge investments made by the pub­ provide the world with enough resources to feed its lic sector, the private sector is in command of the lucra­ expanded population by the year 2020. tive heights. The public sector's share in investment is S8 K. D. Malviya agreed: "Our Atomic Energy Com­ percent while the private sector's share is 42 percent. In mission is aiming at the installation of 10 gigawatts of the total profits, the public sector has a share of 21 nuclear power capacity by the end of this century. My percent whereas the private sector's share is 79 percent. case is that India must produce 'SO gigawatts of energy by The concentration of public sector is in the high capital­ the end of the century." intensive fields of long gestation period. Hence the low returns are very natural. This has a high degree of relevance in the context of economic surpluses for the The speech of Raghunath Reddy purpose of plough-back for investment and develop­ EIR presents here excerpts of the speech delivered by ment. K. Raghunath Reddy , India 'sformer Minister of State fo r The future of industrial development in India de­ Industrial Development. pends on (a) the degree of utilization of scientific ad­ vances and production technology; (b) energy develop­ The economic development achieved by India is well­ ment; (c) the role of the working class; (d) the contribu­ recognized through the world and, to borrow the lan­ tion that the agriculture base can make for industrial guage of our prime minister, "The world now recognizes development in providing raw materials and economic the versatility and capability of our industries." surpluses; (e) the number of technical personnel trained The chief architect of industrial development of India in advanced technology; and the most vital of all is (0 the is our great leader Pandit Jawaharlal Nehru. Nehru role of the government. believed in planning. To him planning did not mean a Any government that follows Nehruite strategy of collection of projects or schemes but a thought-out ap­ development can utilize all the factors of development proach of how to strengthen the pace of progress so that mentioned above. Any backward-looking government the community advances on all fronts. In order to get sufferingfrom obscurant ideas can easily spell disaster. over the gaps in technological development, Nehru ad­ Our agriculture has a great potential. If water and vocated the utilization of the latest scientific processes energy inputs are provided by proper water management and most advanced production technologies for India's and management by utilizing all the perennial rivers and development. energy supplied by nuclear projects in addition to ther­ The main component of Nehru's strategy of devel­ mal and hydro projects planned to be developed, the opment were (a) a large public sector; (b) cooperative agricultural production can be phenomenal. One can sector; and (c) private sector. The central figure in all easily have the benefit of rotation of crops, properly planning is no doubt man. Nehru felt that the process of planned on the basis ofthe latest developments in agron­ planning should involve the changing of human beings, omy, genetics, and planned breeding. India can not only their thinking and their way of work. While the technical solve her food problem but can also become a food aspect of planning is undoubtedly important, the two granary for the rest of nations which are in need. would have to fiteach other. ... If agriculture is to produce surpluses for develop­ Nehru was also conscious of the fact that backward­ ment, the pattern of income-distribution has to undergo ness in science and technology is the cause of poverty, radical change. This demands not only structural and utilization of modern technology creates not only changes in the economic organizations but also heavy wealth but simultaneously employment too. Contrary to industrial development which alone can change the pat-

44 International EIR May 27, 1980 tern of income-distribution by creating enormous oppor­ tunities for employment to those who are found surplus in agriculture. However, without energy, planning for Greetings from Indira industrial development would be an idle exercise. Indian Prime Minister Indira Gandhi sent the fo llow­ Nuclear: the only answer ing gr.eeting to the May 7 Frankfu rt conference on It is estimated by some experts that if economic Indian Development. growth rates of 4.7 percent is to reach 6 percent, and if Since 1947 India has made considerable prog­ there is no change in the present pattern of energy ress in science and technology. The world ,now consumption, then our consumption even at a 6 percent recognises the versatility and capability of our in­ economic growth rate by 2000A.D. would be 470 million dustries. Our aim is to make our country self-re­ tons of coal, 92 million tons of oil and 550 billion kilowatt liant. But we wish to ensure that development helps hours. Even for achieving this moderate growth the all sections of the people and does not create imbal­ implications are undoubtedly staggering. If 11 percent ances in society or in the ecology. It is appropriate rate of growth is contemplated with a multiplier effect, to assess our progress now and to look into the which alone can liberate people below the poverty line, future. then the requirements of energy would perhaps be be­ My good wishes to the conference on India's yond the comprehension of present day planners. Nucle­ industrial development being held by the European ar energy is the only solution and the only answer. Given Fusion Foundation and the Executive Intelligence political will and wisdom, the skilled workers and engi­ Review. neers of India would be able to meet the challenges posed Indira Gandhi by the developmental patterns of nuclear energy. India New Delhi April 12, 1980 does have the natural resources fo r this purpose. The finances fo r development would present stupen­ dous problems. But as Nehru observed, "Finance is Commission. There is a network of intellectual, cultural, important, but not as important as people think. What is and military interdependence. It is said that the devel­ important is drawing up the physical needs of the people oped countries control more than three-fourths of world and then working to produce things which will fulfill resources and technology. such needs. If you are producing wealth, it does not Though the developing countries talk of self-reliance, matter very much if you have some deficit financing self-reliance is not self-sufficiency. International division because you are actually putting money back through of labor is inescapable. If this principle is not accepted goods and services. Therefore, it does not matter how and implemented, the developed countries of market you manipulate your currency as long as your production economy can never be free from economic crisis and is also keeping pace with it ... " This is not to minimize convulsions which can sometimes assume the magnitude the financial support and advanced technology we need of nuclear explosions, threatening the very fo undations from the developed countries. on which these economies are founded. Financial and technological assistance extended by the developed Aid without fetters countries to the developing world ... The Lima conference, the UNIDO meeting in Delhi We are fully aware that our own population by the and the Cuban Prime Minister Mr. Fidel Castro's plan year 2020 would be of the order of about 1.4 billions. But have proposed various methods and institutional frames the scientists have estimated that the world resources can for providing aid wihout fetters. A country must be free provide, if properly utilized and exploited, for 7 billions to choose its own technology and not be tied down by population. Our problem today of both developing and conditions of aid. In all humility it must be stated that developed countries is not Malthus but monetarists and the present economic crisis and convulsions faced by the their agencies and instruments like the World Bank, the developed countries of market economies is mostly due IMF, and other associated institutions. The policies re­ to backwardness and underdevelopment of other coun­ sorted to by the World Bank is seductive, but welfarism tries and peoples struggling to develop. Prosperity and is a sedative. Liberation of mankind from poverty and poverty cannot coexist. The laws ofecon omics are dialec­ suffering, want and sorrow is within the reach of man. tical. Poverty ultimately provides cause for economic Both technology and world resources can provide abun­ crisis. dance. What is wanting is the political will, determina­ The developed nations have articulated their own tion to achieve the goal, by releasing the creative energies group interests, evolved institutional forms fo r building of man for development. If peace is indivisible, develop­ protective structures for themselves in the shape of ment is no less divisible. In fact, peace and development OECD, the EEC, the Group of Ten, and the Trilateral are indivisible.

EIR May 27, 1980 International 45 DatelineMexico by Josefina Menendez

Battle at the interparliamentary meeting These public threats drew heat­ The annual meeting of American and Mexican congressmen ed replies not only from the left is usually a shopping and tourism affair. This year things and from nationalist sectors of Mexico's ruling party, but also were different. from one of the top private sector spokesmen, Carlos Antmann Ob­ regon, president of the National Association of Importers and Ex­ J ust a few family members and U.S. delegation, Sen. Lloyd Bent­ porters (ANIERM). Antmann journalists were on hand to receive sen (D-Tex.), exited from the ranks charged that the U.S. was demand­ the leader of the Mexican Senate, of "Mexico's amigos" north of the ing 200,000 more bpd of Mexican Joquin Gamboa Pascoe, upon his border with a spectacular tirade oil as the price for U.S. relenting return to Mexico City from the against Mexico fo r not taking the on the trade war campaign. May 5-6 U.S.-Mexico interparlia­ Shah back and for not paying re­ As interesting as what was said mentary meetings in Wash­ paratiQns to the U.S. fo r the Ixtoc at the interparliamentary meeting ington, D.C. Not one government I oil spill. is what was not discussed. Most official showed up. His place as chairman was tak­ important in this regard was the In Mexico, when you're en by freshman Arizona Sen. Den­ technology question. "burned" (quemado), you're nis DeConcini, who continued in Last year, a congressional burned. the same political vein. Mexican group led by Jim Lloyd (D-Calif.), Gamboa Pascoe had commit­ officials here have been bracing fo r chairman of the House Science and ted one of the cardinal sins of more public signs of U.S. govern­ Technology Subcommittee on Ov­ Mexican politic�-misrepresenting ment displeasure over the thumbs ersight and Investigations, held the country's views abroad, and dOWll Mexico gave GATT in mid­ hearings to publicize the need to worse yet, misrepresenting them in March. It came in no uncertain offer Mexico high-technology the United States. Gamboa had terms from DeConcini, who de­ packages in exchange for its oil. stated that Mexico fully supported clared that trade between the two This year, this approach was en­ Carter's Iran and Afghanistan pol­ countries "can only prospet if lack tirely absent from the Washington icies, when in fact Mexico ab­ of confidence" -Mexico's negative proceedings. As one Mexican of­ stained fr om January's defining decision-"is erased." He raised ficial told EIR , this bodes ill for UN Security Council vote on im­ Mexican hackles even further by American business prospects in posing sanctions and voiced deep demanding explicitly that Mexican Mexico. He reminded us of the misgivings about Carter admini­ oil be placed at U.S. disposal in words of Mexican Industry Min­ stration policy. case of war-the "strategic re­ ister de Oteyza when Occidental Mexican public opinion was serve" concept. Petroleum's Armand Hammer particularly sensitive to Gamboa's In the second barrel of the showed up in Mexico earlier this propitiation of Washington be­ blast, newly confirmed U.S. am­ year with big financing projects­ cause the entire Interparliamentary bassador to Mexico and first Chi­ but without a technology kicker. meeting was taken up with sharp cano named to the post, Julian Said de Oteyza: "We are not inter­ American recriminations against Nava, charged that Mexico's ested in financial resources as such. Mexico fo r not joining GATT, and GATT decision would "cause new Through oil, our country has ad­ renewed threats of actions against problems" in relations and that equate economic resources. We are Mexico's undocumented workers there were "limits" on how many willing to listen to any investment in the U.S. undocumented workers the United project, so long as it also repre­ The bitter undertones of the States could take in the midst of sents the highest level of technol­ meeting-in the past a politically economic depression. Two days ogy-in production, administra­ lightweight affair-actually trace later he added more fuel to the fire tion, and · exports ... Projects that back to last December. At that by threatening, "sooner or later come from abroad and don't in­ time the longtime chairman of the Mexico will have to join GATT." clude this aspect will be rejected."

46 International EIR May 27, 1980 MiddleEast Report by Robert Dreyfu ss

'Death of a princess' Overall, the film carries the The provocative film was shown in America, too, but the same message that the supporters Saudis didn't react like the film's British producers hoped of the Ayatollah Khomeini's Is­ lamic revolution did back in 1977. they would. First, that Islam and moderniza­ tion do not mix. By presenting the death of the princess as the inevi­ table result of an alleged clash in values between the Saudi tradition T he healthiest reaction so far to "Death of a Princess" will echo and the life of the twentieth cen­ the showing of the Grade-B public and re-echo throughout the Arab tury, the film endeavors to create television film "Death of a Prin­ world. As such, it represents a ca­ the impression that industrial de­ cess" is the report that an Arab talyst not for rebellion among the velopment in Saudi Arabia must film consortium is considering the young and those disaffected with necessarily corrupt the purity of production of a movie about the the Saudi regime; for, in Saudi Saudi life. We wonder, says one of gutter life and base immorality of Arabia, there are few real dissi­ the characters in the film, "how Great Britain's Princess Margaret. dents. Instead, the film-which has much of your present is worth im­ In fact, the only point in the "Prin­ now gained notoriety and is thus itating?" cess" film that showed even slight certain to win attention as a curi­ Second, the film contrasts the humor was the remark by an un­ ousity-is calculated to provoke a alleged excesses and vices of the named Saudi official, speaking to backlash of Islamic fundamental­ present Saud; regime with an idyl­ the nosy British journalist, that ism a la Ayatollah Khomeini. Al­ lic vision of the primitive, tribal Saudi Arabia "does not turn aside ready, Saudi Prince Abdullah ibn life under allegedly Islamic law. from the excesses of our royal fam­ Abdel Aziz, the Muslim Brother­ During one scene in the film, as an ily. " hood supporter who is the com­ Arab actor plaintively suggests Fortunately, reacting with mander of the British-trained Sau­ that the Arab world is searching some statesmanship to the showing di National Guard bedouin elite for its roots and wants to go "back of the insulting British-made film, force, has used the occasion of the to the tribe," in the background is the Saudi government has not re­ film's showing to argue for the playing the Beatles' lyrics: "I be­ acted as the makers of the film had thousandth time that Saudi Arabia lieve in yesterday." hoped that they would. What was should avoid a modernization The "Death of a Princess" rep­ intended-or at least desired-by drive. resents something that the Saudis the film's producers, representing Suzanne Abou Taleb, the are ill-equipped to combat: ideo­ a combine of the Anglo-American Egyptian actress who starred in the logical and cultural warfare. For intelligence-controlled electronic pornographic epic, has said proph­ the last 15 years, Saudi students communication media, was to pro­ etically that "there will be thou­ abroad have been put through a voke an outburst of Islamic anger sands of pirated tapes all over the virtual brainwashing process by and outrage that would , they Arab world." Many Saudis and the university system in the West, hoped, be directed at the West as other Arabs who view the filmwill especially in the U.S. and Great a whole. identify with the theme of the two­ Britain. An entire generation of They wanted the Saudis to de­ hour propaganda exercise, namely, the Saudi elite has been trained in clare an oil embargo against the that the Saudi regime represents the neo-Malthusian outlook of United States. the "enemy of progress" and that Princeton University and Stanford, Instead, quite selectively, Saudi what is necessary is a "return to Oxford and Cambridge. now, back Arabia has expelled the British am­ the pure and democratic spirit of in the bureaucracy and in the var­ bassador from Riyadh and quietly Islam." The struggle, says an ac­ ious government offices and min­ severed all new trade and economic tress in the film, "has already be­ istries, they are susceptible to the contracts with British firms. gun." And backward Prince Ab­ lure of the fantasy-world presented But the battle is far from over. dullah is ready to lead it. in the film.

EIR May 27, 1980 International 47 International IntelHgence

the 1940s by the former British Ambas­ Saudi Arabia this week enacted a sador to Washington, he notes that the retroactive $2 price rise to $28 a barrel Europe problem is that the "American political which industry sources see as the first ' system is so much more populist than move towards raising its crude price to • Africans back Giscard those of oligarchical Western Europe." $30 at the upcoming June I price-setting This is followed by an article in the parley. In so doing, the Saudis hope to . Over 20 African nations along with London Times yesterday which states: get an agreement from the hardliners to . France ended a two-day summit confer­ "Europeans are beginning to doubt set a fixed ceiling on prices with the ence in Nice pledging their "active sup­ whether the American system is any Saudi price representing the floor. In. port" for French President Giscard longer capable of producing a really exchange the cartel would adopt the d'Estaing's proposal for a "trialogue" good president and a congress with long range planning perspective. summit of European, Arab and African which he can work." heads of state. France has pledged a 225 percent increase in the volume of low-interest loans it grants these nations. The man­ Congressmen callfo r d;Jte from the Nice conference means Giscard must now reach an agreement Middle East dialogue with Iran with the oil-producing countries to "re­ clycle" petrodollars to finance African Iran to control OPEC On May 7 Congressman George Hansen development. Giscard received agree­ (R-Id.) and John Rhodes (R-Az.) intro­ ments in principle on this issue from pricing ceiling ? duced a resolution calling for "efforts to many of the Persian Gulf countries he establish a dialogue with the duly elected visited during his tour there earlier this According to Kuwaiti sources an agree­ representatives," i.e., parliament dele­ year. ment has been reached in principle be­ gates of Iran and the United States. tween Saudi Arabia and the so-called "The crisis is between the governments price hawks of the oil cartel, OPEC, and not the people of Iran and the whereby the Saudi long range plan to United States," they stated. One main impose small quarterly oil price hikes purpose of this dialogue, according to British want an pegged to inflation will be adopted in aides to the Congressmen, would be exchange for allowing Iran to set the discussion of how to achieve the release oligarchy in America ceiling price for OPEC crude. Oil min­ of the U.S. hostages, which Ayatollah isters from the 13-member cartel met Khomeini has claimed will now depend The British press is beginning to outline earlier this month at Taif, Saudi Arabia on what the Iranian parliament decides. in candid terms the "reforms" they have to discuss a proposal drawn up by Saudi The just concluded election in Iran has in mind for the American system. Amer­ Arabian Oil Minister Zaki Yamani for brought into office a hard-line parlia­ ican constituency politics have to be pricing and production over the next. ment dominated by the Islamic Repub­ ended, substituting the more easily con­ decade. lican Party which has been using the trolled oligarchical system for the pres­ This plan was initiated jointly with hostage issue to coalesce their power in idential system, and in the meantime, former British Energy Minister Anthony Iran, so it is unlikely that they will make while this takes place, Europe must rally Wedgewood Benn in 1978. According much of an effort to free the hostages. around one voice to play a greater role to the plan not only would the price of The resolution is now before the House in world affairs. OPEC crude rise on a quarterly basis International Relations Committee The most frank comments to this pegged to the value of an international awaiting action. effect were published in the Daily Tele­ basket of currencies, but it also includes graph May 12 in an article by Peregrine provisions for reductions in oil output Worsthorne who states that "what few to keep OPEC prices firm . are yet prepared to admit is that the The hardline faction in the cartel, Qadafji clamps down on world is no longer suited to American Algeria, Libya and Iran have been op­ leadership; that the problem does not lie posed to the plan since it takes away growing opposition in the defect of this or that President their option of imposing arbitrary price but in the nature of American society rises. It is this faction which prices its The maverick Arab leader Muamar itself." oil at the highest levels, going to nearly Qadaffi of Libya this week expelled 26 Referring to an analysis published in $40 a barrel. Americans working in Libya as the lat-

48 International EIR May 27, 1980 Briefly

• MASA YOSHI OHIRA, pre­ mier of Japan, lost a parliamentary no-confidence motion, according to late reports. Ohira has decided est in a series of moves to contain the of at least 11 arrests, including one for to call new elections. The parlia­ growing opposition to his regime. Ac­ a shotgun slaying. He had been trained mentary vote went against the pre­ cording to charges from Tripoli, the as a sharpshooter in a special Airborne mier when Liberal Democratic Americans were teachers and employees Brigade unit. faction leaders Miki and Takeo of U.S. oil companies and had been During the Arab-Israeli war of 1973 Fukuda, both former premiers, cooperating with restive elements in the Hazeev (which means "wolf' in He� absented themselves from the Diet. country. brew) emigrated to Israel to fight in the Thisgave the opposition parties a European sources report that several Israeli army, and joined the Golani Bri­ majority. Ohira, considered a firm hundred arrests have been made in Li­ gade. Soon thereafter he attached him­ ally if not outright puppet of the bya of those challenging Qadaffi. As self to Rabbi Meir Kahane's paramili­ Carter administration displeased well there have been 6 assassinations tary "Kach" Party on the West Bank. some Japanese when he returned abroad of Libyans who were allegedly According to an American rabbi who from last week's visit to Washing­ involved in operations to oust Qadaffi. knew him, Hazeev was "trained to kill ton and Mexico City having com­ Last week 4 Libyans were expelled from and committed to war." mitted Japan to increased arms the U.S. for harassing exiled Libyan Just over a year ago Hazeev-Mahon spending, and having been denied nationals who are thought in Tripoli to was detained at Ben-Gurion Interna­ any increased Mexican oil sup­ be involved in anti-government activi­ tional Airport in Tel Aviv as he was on plies. ties. his way to the United States on what According to European sources, the was described as a mission to murder • INDIAN SOURCES report British are running their own anti­ someone. that U.S. Ambassador to India Qadaffi movement out of London with Robert Goheen has been denied remnants of the Idrissi clan which ruled permission to take an inspection Libya prior to Qadaffi's takeover. tour of the Assam region that has Linked to this London operation is a been the scene of anti-government powerful Muslim Brotherhood move­ activity. The Ambassador, former ment in Libya which professes mystical Asia president of Princeton University, Sufism and charges Qadaffi with run­ the Indian government charged, ning too secular a governmen.t. These Callaghan hails had recently been to Assam. The same European sources indica,te that official statement alluded to his there have been hundreds of political Chinese 'comrades ' possible intention to "influence" executions by the Qadaffi regime since the situation. the anti-government upsurge began ear­ Former British Prime Minister James Callaghan, currently on a 12-day visit to lier this year. • MOSHE DAYAN, China, has characterized Britain's rela­ the dean of tions with the Chinese as the "corner­ Israeli statesman, has gone on re­ stone" of its forei'gn policy. Speaking at cord stating that the homes of a dinner in his honor chaired by Chinese West Bank residents whose chil­ Israeli 'martyr' a hitman Deputy Foreign Minister Nan Nian­ dren throw stones at Israelis 7 long, Callaghan said, "It is a great should be blown up. In a May Eli Hazeev, one of the extremists killed leasure to come to a country and say, interview on Israeli television, p in the Israeli-occupied West Bank two Comrades and friends!' " Dayan said: "Blowing up a house, weeks ago, was an American-born Viet­ Callaghan added that his Peking trip in my opinion, is not only for nam veteran with a record of 11 arrests "clearly demonstrates the importance someone who, let us say, had ex­ including one for a shotgun slaying, the which we, in the Labor Party, attach to plosive material found in his New York Times reported May 12. relations with China ... it shows that in house; even children who throw According to the Times' front-page Britain there is broad consensus that the stones once or twice, and if it is story, Hazeev who was born at Mitchell maintenance and development of good known that it is the same child Air Force Base on Long Island as James relations with China must be one of the and the parents are located and Eli Mahon, son of an Air Force intelli­ cornerstones of British foreign policy." the parents do nothing, they just gence officer, was fo rmerly employed by Callaghan will hold meetings with call the child when he comes the Federal Bureau of Investigation Chairman Hua Kuofeng and Deputy home, they pat him, they call him which paid him to infiltrate "radical" Premier Deng Hsiao-peng and will con­ 'good boy.' That house should be groups. Under his FBI cover, the Times duct discussions on the situation in Af­ blown up." notes, Hazeev-Mahon piled up a record ghanistan and Kampuchea.

EIR May 27, 1980 International 49 Carter and Brzezinski's mad drive toward war

by Konstantin George

In a speech before the Philadelphia World Affairs Coun­ Europe didn't exactly go along, but didn't reject the cil May 9, President Carter announced, with insane demands either. They tried to stall, in the main. A host of disregard for the consequences, that the United States is agreements on paper were reached in Brussels, but in committed to provoking a thermonuclear confrontation particular, West Germany would not agree to any impli­ between the superpowers over the Persian Gulf. cation in the final communique that NATO could inter­ Carter specifically enunciated this policy as the means vene in the Third World. Their troops, they said, are not of breaking the framework of Euro-Soviet economic leaving the continent (see International). But the Carter collaboration established in the course of the last few administration isn't finished, and the Soviet Union years. And it is that collaboration which has spelled the knows it. As Harold Brown, the U.S. defense secretary, difference between world peace and the outbreak of expressed confidence thal the "full program" of U.S. World War III. demands would eventually be implemented, Warsaw In total disregard for the economic and trade revival Pact communiques spoke of a war in which "whole policies embedded in the European Monetary System of nations will burn." the maj or European allies of the United States, Carter has issued an ultimatum to Europe to get in line with the , Warsaw pact warnings United States behind a policy of confrontation and N azi­ May 14 was also the date of the Warsaw Pact Summit, like militarized economies. The text of that ultimatum one group of heads of state who have not and will not reads as fo llows: "play the game" according to the psychotic rules of the "The West must defend its strategic interests wher­ Carter crowd. Two weeks ago, the Soviet Union directly ever they are threatened .... There can be no business as intervened to tell the United States to get its military usual in the face of aggression. The Soviets will not forces out of Iran. This intervention swiftly aborted succeed in their efforts to divide the alliance or to lull us Carter's planned military action in Iran, which could in the false belief that somehow Europe can be an island have pushed the world over the brink of war. of detente while aggression is carried out elsewhere." Every governing elite in the Western world knows Carter's ultimatum was deliveredjust fivedays before that to be the case. The Soviet Union has repeatedly the meetings of the NATO foreign and defense ministers publicly warned the Carter administration to reverse in Brussels. On that date, May 14, the United States, as course before it's too late, as the following citations Defense Secretary Harold Brown and his deputy Robert reveal: Komer had already announced, demanded European • On May 8, Marshal Kulikov, Commander of the compliance with new U.S. moves to intervene militarily Warsaw Pact forces wrote in the East German newspaper into the Persian Gulf region. Neues Deutschland, "American policy is reminiscent of

50 National EIR May 27, 1980 the pursuit of world 'domination by the German fascists . ' . . . A t any moment various conflict situations could get out of control politically and lead to a major war. " (emphasis added) 'The Sovietshave • On May 6, Radio Moscow described the Carter administration: "Insanity has become part and parcel of challenged our power' American policy ... the Iran raid was an action verging on madness ... so closely was the world brought to the Th e fo llowing excerpts are fr om a Baltimore Sun ad­ brink of war." ap tation of National Security Adviser Zbigniew Brze­ The most chilling note of all is that the Warsaw Pact zinski's May 5 inaugural address to the Baltimore "brink of war" warnings cited occurred befo re Carter's Council on Foreign Relations Philadelphia speech. On the one hand, the President has stressed the contin­ Policy of provocation uing importance of American power in a world of Carter's speech-a repeat performance of National change. Without that power there is the genuine risk Security Adviser Zbigniew Brzezinski's speech to the that global change would deteriorate into increasing Baltimore World Affairs Council May 5-definesa con­ fragmentation and anarchy to be exploited by our fr ontation course in language which supersedes even the adversaries with the use of their power ... height of the Cold War: I submit to you that the last three years have seen "Soviet aggression-unless checked-confronts all continuity, consistency, and constancy in the effort to the world with the most serious long-term strategic make America a positive fo rce for stable change ... challenge since the Cold War began ...." The President has felt from the very beginning that This was fo llowed by the "extend NATO globally" the use of American power is a means toward shaping demand of the "Carter Doctrine," announced on Jan. 23 a more secure, but also more decent world. and totally rejected by Western Europe at the time. The second continuing goal of our fo reign policy Carter's application of a policy of provocation for has been to improve our relations with the Third any and all "conflict areas" around the globe is no mere World, the world of new Asian and African and Latin rhetoric. Beyond moving toward a confrontation in the American countries ....Today the United States has Persian Gulf, the Carter administration is playing the a healthier and better relationship with the new na­ China card to propel the Pacific Theater toward war. tions ofthese previously passive political entities. This month, China will conduct its firsttest of an ICBM. Our third objective has been a substantive move­ The Chinese defense minister will arrive in Washington ment toward peace in the Middle East. We have done on May 27 for three days of secret talks with Defense it because we feel that as a country we had a moral Secretary Harold Brown. The expected increase in the obligation to sustain and to insure the security of level of military technology assistance from the United Israel. The consequence has been the firstpeac e ever States to China will push the Pacificsituat ion even closer between Israel and an Arab country and the prospect to the brink. Simultaneous with this "China card" luna­ eventually of a wider comprehensive tr��ty. cy, the Carter administration is upping its blackmail We have a strong view that in an age of change, pressure on Japan to rearm and join in a de facto "u .S.­ credible American power is the source of assurance Japan-China" axis against the Soviet Union. that global change will not be exploited by our adver­ saries to inimical ends. Today that problem, that Orwellian newspeak challenge, is posed with special relief in Southwest If you depended for your news on any of the major Asia where, as the Presi@Fnt said in his State of the newspapers in the United States, then you would not Union message, the Soviet occupation of Afghanistan realize how close to war the Carter administration has poses a potential threat to our longe-range interests pushed matters. As anyone familiar with the "standard" and to the interests of our friends in the Persian Gulf Orwellian controls governing the major U.S. media area. would expect, not only is there no mention of the Soviet This is why we have been gradually enhancing our warnings, but the Carter speech itself was blacked out of capabilities there. This is why we have been engaging almost all the Saturday editions of the major metropoli­ in consultations with our friends and allies on how tan newspapers. Imagine John F. Kennedy's Cuban best they can respond. Missile Crisis speech going unreported and then learning And finally our objective has been to sustain a days later that a nuclear showdown was already occur­ stable and reciprocal detente with the Soviet Union ring. The activiti�s of the Carter administration and the

EIR May 27, 1980 National 51 total Orwellian controls placed on the news media both show that the ruling Anglo-American "Olympian Fami­ lies" want to "have it both ways." These fo ols want to go 'Europe can 't be an for what they perceive to be a "managed confrontation" to break European resistance to Carter's fa scist economic islandof detente' policy of giving free rein to looting both at home and in the Third World. But they also want to avoid the conse­ President Jimmy Carter made these comments to the quences of war that will sooner or later result from their World Affa irs Council in Philadelphia on May 9, 1980. "attaining their goals." This consensus shows and the events confirm that there exists now no point of even Beyond the violence done to Afghanistan's inde­ slight sanity within the Carter administration. Nothing pendence and people, the Red Army troops consoli­ could better illustrate this point than the fa ct that not one dating their hold there are also taking positions from of the Anglo-American Olympians has yet publicly de­ which Soviet imperialism could be extended more manded the ouster of Carter and Brzezinski. deeply and more dangerously in ...th is vital area. The full scope of the insanity gripping the administra­ This would threaten Pakistan and Iran, but not tion is also carefully underplayed to lull the American those nations alone. Soviet aggression in Afghani­ population. The details of this level of insanity, once stan.;.-unless checked-confronts all the world with known, ought to produce a mass outrage sufficient to the most serious long-term strategic challenge since demand the immediate impeachment or resignation en the Cold War began .... masse of Carter and his policy-makers. To illustrate the The Soviets must understand that they cannot depth of this lunacy, we quote the fo llowing news dis­ recklessly threaten world peace-they cannot commit patch concerning the State Department and its new chief, aggression-and still enj oy the benefits of coopera­ Edmund Muskie. tion ... We have not forgotten and will not forget the 53 Americans imprisoned in Iran. State Department We will continue to make every effort, using peace­ 'consciousness raising' ful means if possible, and through collective action "Secretary of State Edmund Muskie and his new with our Allies, to obtain their release ... colleagues at the State Department have had their first Our first objectives-solidarity with our allies-is consciousness-raising session, discussing their likes and the touchstone of our foreign policy. Without such dislikes." Muskie then describes his fa vorite Secretary of solidarity, the world economy and international poli­ State as Dean Acheson. Acheson's two notable claims to tics will degenerate into disorder. infamy were his setting up of the Korean War with his This is why we have led the North Atlantic Alli­ January 1950 speech ("Korea lies outside our defense ance in its program to upgrade its conventional fo rces. perimeter") and his role in the 1962 Cuban Missile Crisis. And last winter, in an historic decision, NATO agreed At that time Acheson was the official U.S. liaison with to strengthen its nuclear missiles in Europe Britain and shuttled between Washington and London Since 1945, the United States has been committed to coordinate the crisis. to the defense of our hemisphere, and of Western The UPI dispatch continues with Muskie speaking Europe and then of the Far East ... on fo reign policy: "The United States must have a con­ In recent years, it has become evident that the well­ structive presence in the world made up of an aggressive being of these vital regions depends on the peace, promotion of our ideas and values, an aggressive pro­ stability and independence of the Middle East and the motion of our interest in human rights, an aggressive Persian Gulf area .... promotion of our determination to deter aggression by Let our position be absolutely clear: An attempt every means available to a free people. And the best way by any outside force to gain control of the Persian to do this is to make the idea of freedom and Iiberty­ Gulf region will be regarded as an assault on the vital associated with strength-live in this world." interests of the United States of America, and such an George Orwell himself could not have crafted such assault will be repelled by any means necessary, in­ Newspeak. cluding military force. The continued existence of the Carter presidency is ...The Soviets will not succeed in their efforts to intolerable. It depends on European governments, the divide the Alliance or to lull us into a false belief that Soviets, and other fo rces to deliver a series of un conceal­ somehow Europe can be an island of detente while able, humiliating shocks to the U.S. administration, to aggression is carried on elsewhere. create an environment in which the Carter candidacy and presidency will collapse.

52 National EIR May 27, 1980 The heroin epidemic and Brzezinski's 'Islamic fr iends'

by Chris Curtis

In November of last year, the U.S. Drug Enforcement percent range up to 10 and 15 percent. There have been Agency issued a classified report warning that the United cases of 60 percent purity in New York street "dime States will be hit by a flood of high grade heroin as the bags" in recent months. suddenly mammoth opium crop in Iran, Afghanistan, The combined effect of fa lling prices and climbing and Pakistan is harvested. This heroin epidemic, de­ purity means that heroin is on its way to becoming a scribed by authorities to be 2,000 times worse than anything "popular" narcotic with a near-total rate of addiction. this country has ever seen, is expected to hit There are no "casual" users at 60 percent purity. Even full force in major U.S. cities by mid-summer. Already more alarming are reports that the new Golden Crescent heroin fr om the so-called Golden Crescent of Southwest heroin is being refined in such a way that it can be Asia has overwhelmed Western Europe. Heroin deaths smoked, which would allow even broader consumption in West Germany alone have doubled in the first three by removing the stigma many potential users have of months of 1980. According to law enforcement sources, injecting the drug. Boston authorities are already pre­ the new, dangerously high-powered Mideast variety has dicting that by June, street marijuana will be laced with begun to show up on the streets of several American Mideast heroin. cities. The EIR investigating team concluded that the "pro­ The threat of a heroin epidemic of almost unimagin­ file" of the heroin wave, both quantitatively and quali­ able proportions is shocking enough, and there is no tatively, indicates that it is designed to cripple as large a doubt that the DEA report should be taken seriously. segment of the American population as possible. But equally striking are the questions the report does not answer. First among these is the relationship between Who is responsible?

National Security Adviser Zbigniew Brzezinski and the The best-selling book Dope, In c. , published two years "Islamic fu ndamentalists" who are churning out this ago by a team of investigators commissioned by EIR high-powered opium.

Prices down, deaths up Illicit opium production (1979 estimated) EIR investigators reviewed the agency's intelligence assessment and initiated an independent probe of the heroin danger. Here are our findings. According to the DEA report, titled after an intelli­ gence-gathering project known as "Operation Cerber­ us," the latest opium crop fr om the Golden Crescent totals 1,600 metric tons-more than double the record­ breaking 1978 crop fr om this same area and almost fo ur times the 1979 opium harvest from the Golden Triangle in Southeast Asia. The Golden Crescent haul is so enor­ mous that it has driven heroin prices in West Germany down to $25-30,000 per kilogram, compared to the equivalent price in the United States of close to $200,000. The street-level purity of this new batch of "smack" has also soared to upwards of 60 percent. In cases where this heroin has shown up in the United States, such as in Boston and New York, purity has risen from the 2-6

EIR May 27, 1980 National 53 contributing editor Lyndon LaRouche and appropriate­ for thousands of gallons of acidic anhydride, the chemi­ ly subheaded Britain 's Op ium War Against the United cal needed fo r processing opium gum. States, established that the entire international network of narcotics traffic, from cultivation to street-level "mar­ Reining in the D EA keting," is controlled by a cartel of major banking Who has reined in the DEA to prevent it fr om houses, mining companies, insurance firms, and other investigating this evidence? Again the trail leads to the corporations centered in London and New York, with White House. An agency spokesman told EIR that sat­ subsidiaries in Montreal, Hong Kong, and Bangkok. A ellite and aerial photoreconnaisance would indeed show partner in this traffic is the government of the People's "poppy fields and mule trains" throughout the Golden Republic of China. Yet the Carter administration, Crescent, and would probably show drug-involved truck through Attorney General Benjami Civiletti and the convoys along the Chinese highway. But, he said, "we "guidelines" he imposed on the DEA, has conspicuously are not allowed to do that." It is also known that avoided any mention of this international drug cartel, Attorney General Civiletti'� Justice Department has much less taken action against it. curbed domestic DEA intelligence gathering on grounds The White House has not only covered up avenues of that it infringes on the "civil rights" of suspected traffick­ investigation in this direction, but there is evidence that ers. "We have no way of telling how much drugs are it is directly involved in promoting this opium boom. being consumed" as a result of these restrictions, another The EIR has established that self-styled Afghani "rebel DEA source said. leader" Zia Khan N assry is a top figure in the heroin What has been the Carter administration's response trade. An American-born graduate of the Harvard Busi­ to evidence that the heroin flood is a carefully planned ness School and the Massachusetts Institute of Technol­ assault on the United States? Malthea Falco, the State ogy, Nassry admitted to EIR last January that his rebels Department's "drug expert," testified before Congress finance their activities through the cultivation of opium. last fa ll that the skyrocketing of opium production in the He fu rther acknowledged that he is in direct contact with Golden Crescent is the result of the absence of any the Khomeini regime in neighboring Iran, and is a governmental control and that the new Islamic move­ relative of Pakistani dictator Zia. It is public knowledge ments in the region have nothing to do with it. Not that Brzezinski has collaborated with the Chinese surprisingly, Ms. Falco is a member of the National Maoists in supplying arms and equipment to Nassry. Organization fo r the Reform of Marijuana Laws, Earlier this year Brzezinski even posed for photographers NORML, which is financed by the drug-promoting with some of these weapons. Is opium the payment for magazine High Times. Brzezinski's arms deal? And then there is the revelation earlier this month Khomeini's partisans in Iran, the second largest that the Federal Emergency Management Agency, has source of opium in the world, have been characterized by "revised" the list of commodities it intends to stockpile Brzezinski as America's "allies" against the Soviet for such contingencies as nuclear war or some other Union. EIR discovered fo ur months ago that Brzezin­ "national disaster." Included among the revisions is a 40 ski's "allies" maintained an official intelligence liaison, percent increase in opiates-from the presently stock­ one Captain Setoudeh, stationed in an office adorned piled 72,000 pounds to 130,000 pounds. Purchases of with Khomeini portraits at the Office of Naval Research such a remarkable quantity of opiates could begin as annex of the Pentagon. Three of Setoudeh's compatriots early as 1981 and conclude in 1983, according to a were arrested in Los Angeles last fall for smuggling 35 FEMA spokesman. This means that within a two-year pounds of uncut heroin-hidden inside the frames of period, the fe deral government will be buying up the portraits of Ayatollah Khomeini. equivalent of 250 to 300 metric tons of raw opium-more It is also no coincidence that Pakistan has become the than twice the 1979 crop of all of Southeast Asia. world's largest poppy producer since Zia, another of All evidence suggests that the almost overnight her­ Brzezinski's Islamic "allies," overthrew the anti-drug oin boom, the upsurge of Brzezinski's medieval Islamic government of Zulfikar Ali Bhutto. fundamentalism, the sudden prominence of FEMA and The hand of the Chinese Maoists is also clearly visible its announced dope-stockpiling plan, and the rapid slide in the coming heroin plague. While the DEA study fails into what the New York Council on Foreign Relations to draw out this connection, the sudden increase in champions as "controlled disintegration," are part of Afghani-Pakistani opium production coincided with the what has been identified by this magazine as the Aquari­ completion of a new highway linking the western prov­ an Conspiracy. There is no coincidence in the fact that inces of China to the opium region. The highway has the same Carter administration that is prepared to send also served as the principal arms supply route for Zia and the nation to thermonuclear death over Southwest Asia Nassry. One retired U.S. narcotics investigator has iden­ is also willfully implementing a policy of murder and tifiedthe Chinese highway as the most likely transit route menticide against the American people.

54 National EIR May 27, 1980 A bad day for Peccei and the Club of Rome

A May 8 Club of Rome-UNITAR press conference with Ervin by Mark Burdman Laszlo (far left), Aurelio Peccei (center) and other officials. Photo: UN

On May 8 and 9, the United Nations was the scene of a in the NATO command. The document fu rther reminded conference on "Regionalism and the New International readers that in the mid-1 970s Peccei-who cultivates a Economic Order," cosponsored by the Club of Rome, debonair aristocratic image-advocated "cannibalism" the United Nations Institute for Training and Research as a final solution for mankind under conditions of (UNITAR) and the Mexico City based Center for Third global Club of Rome austerity. World Studies (CEESTEM). The sponsors had carefully Neither Peccei nor Ervin Laszlo, . UNIT AR's re­ rigged the environment with a wide array of speeches search-director, appreciated the circulation ofthis infor­ and position papers calling for a "restructuring" of the mation. A visibly unnerved Laszlo ordered UNIT AR world system. Security was unusually tight for a "public" Secretary-General Davidson Nicol to have the represen­ United Nations event. tatives forcibly ej ected fr om the room, on the basis, oddly The speakers told the audience of European and enough, that the leafletwas "racist." developing sector nation representatives of a new world Laszlo's unbalanced reaction amused several onlook­ system of "regional blocs" whose interrelations would ers, who began to suspect that there was more than a be controlled by a small chosen elite of "wise men" germ of truth in the leaflet's charges, and that Laszlo's handpicked by the Club of Rome. It is the Club's "limits "anticolonialist" posturing was not all as it was cracked to growth" project of global deindustrialization and up to be. return to the fe udal age that would be implemented The Club of Rome's carefully controlled environment under such a world system. was cracked again a few moments later. Following Pec­ This was the first Club of Rome event ever held at the cei's opening remarks, another LaRouche campaign rep­ United Nations, and its fo under and leader Aurelio resentative rose to challenge Peccei's assertion that the Peccei, the "maestro" of the whole affair, wanted noth­ current world system is "ungovernable" and to decry the ing to go wrong. "infamy" of Third World representatives cooperating Peccei was not to have his way. with the Club of Rome, an institution whose policies As the event began on the morning of May 8, several must lawfully lead to the substantial reduction of the representatives from Citizens for LaRouche, the presi­ population throughout the developing sector. dential campaign organization of Democrat Lyndon This representative, too, was forcibly ej ected from the LaRouche passed out to the gathering an information room, handcuffed, and removed from the United Na­ sheet entitled "We Warn You: The Club of Rome is a tions building. NATO Intelligence Branch." The document traced the The systems analysts and social engineers ofthe Club roots of The Club of Rome to a NATO decision to create of Rome seemed unnerved by this turn of events. a detechnologized world order in the late 1960s and listed At a press conference after the morning session, the many Club of Rome members who are top strategists Laszlo abruptly adjourned the question-and-answer pe-

EIR May 27, 1980 National 55 riod, refusing to answer questions from a correspondent Laszlo calls for a mobilization of the Third World against from this journal about the Club of Rome's stated antip­ the advanced sector: athy toward the nation-state and its insistence on a radically reduced living standard for the world's popu­ [The developing countries must] "acquire suffi­ lation. cient negotiating power to press the issues and bring about earnest and mutually productive bar­ 'South-South collective self-reliance' gaining on the North-South level. ... The develop­ ing countries [must] achieve sufficient self-reliance Underlying this clash between representatives of the on the South-South level to sustain their economies Club of Rome-UNITAR group and representatives of until such time as a negotiated restructuring of the the LaRouche campaign are some very fundamental international economy can lift the constraints on differences in world political and economic policies. their development. Whereas the Club of Rome posits a future world depo­ pulated by genocidal policies of deindustrialization and To accomplish this gameplan, Laszlo emphasized, the deurbanization, LaRouche, an internationally renowned Third World would have to be organized into "blocs" economist, has proposed the creation of an International capable of confronting the advanced sector head-on. The Development Bank to fund the growth of the high­ centralness of this goal explains the tight lid that Laszlo technology industrial export capacity of Europe and the and Peccei tried to maintain over the conference proceed­ United States to industrially and agriculturally develop ings. the Third World. LaRouche's proposal informed the development of the European Monetary System by the Who are your clients?' leaders of France and West Germany. At a private cocktail party the evening of May 8, As LaRouche has argued in policy statements over several of the conference's leading lights expressed the the years, it is to the mutual interest of proindustrial fe ar that this tight lid had been blown. tendencies in both the developing and .advanced sectors A fidgety Alexander King confided to an investiga­ that this economic gearup be launched. If not and the tive journalist: "I am very depressed. You can see the policies of the Club of Rome and UNITAR gain ascend­ problems we're having in getting our restructuring pro­ ancy, then the pauperized Third World regions will posals across in the United States. That LaRouche leaflet become the battlegrounds fo r world war. It is these no­ today exemplifies what I mean. It is symptomatic of the growth policies that impel the countries of these regions American population's insistence to this day on growth, to form NATO-like military blocs and fo rce an increas­ on consumption. It is very hard to get people here to ingly impoverished advanced sector into looting adven­ change, especially when our planning sessions get dis­ tures abroad that bring them in direct confrontation with rupted in this way." the nations of the Warsaw Pilct. Similarly, James Botkin, a Harvard School of Edu­ The top advisers at the Club of Rome and UNITAR cation professor who has co-authored a recent Club of are well acquainted with Mr. LaRouche's statements and Rome "learning project" premised on infiltrating the ideas. Ervin Laszlo is one such adviser. "limits to growth" perspective in school curricula around In a special conference working document authored the world, remarked to an associate: "What is going on by Laszlo, an introductory section entitled "The Region­ in this conference and what is going on in the U.S. is al and Interregional Strategy for Collective Self-Reli­ worlds apart. We can meet and talk all we want in ance" sounded this note of alarm: organized sessions, but our message about restructuring the world system is getting nowhere in the U.S." In recent years there has been a growing perception To various observers at the cocktail party, this mood in some developed countries that the relaunching of depression contrasted sharply-and eerily-with the of international economic growth is dependent first unending, pompous speeches on "regionalism" and "re­ of all on economic relations. structuring" and other Club of Rome code words. EIR 's Mr. Laszlo is also against ajoint commitment on the part correspondent decided to probe further, and conducted of advanced and developing sectors for global industrial­ interviews with Peccei, King, and Laszlo. All three were ization. He continues in his policy document: near-hypnotized when our correspondent queried these three on the "Aquarian Conspiracy" to deliberately in­ This perception [of the priority of economic recov­ duce a moral, material, cultural and intellectual decay of ery in the industrialized countries] encourages the the popUlation of the United States and the Club's role in belief that the most pressing need is to correct that conspiracy. These three "global planners" also had temporary flaws in the workings of the present difficulty grasping the method of the LaRouche-Rie­ international economic system rather than to res­ mann economic-modeling approach that EIR econo­ tructure it and create a new international economic mists have applied to analyze the U.S. and world econo- order.

56 National EIR May 27, 1980 my. That approach scientificallydebunks the entire "lim­ its to growth" fr aud of the Club of Rome by demonstrat­ ing that their approach leads to the phenomenon of thermodynamic death in a society and that this can be averted by the introduction of new energy-dense tec�nol­ EXCLUSIVE INTERVIEWS ogies which positively transform the resource-base of the society. This presented a particular difficulty to the di­ minutive King, since his International Federation of Institutes of Advanced Studies has developed a comput­ 'We created the er-simulated "thermodynamic" model based on the law of entropy. ecology movement' Laszlo too did not appreciate the evaluation that the LaRouche-Riemann model would soon put the Club of Th e Club of Rome's Maurice Guernier, Aurelio Peccei's Rome and UNIT AR out of business. "Who are your righ t-hand man. granted an interview to Executive Intelli­ clients?" he defensively asked. gence Review's United Nations correspondent Nancy Coker aft er the closing session of the May 8-9 Club of Rome, conference at the United Nations. Industrial development Guernier himselfpresented a paper on "Regionalism or a new world empire? and the New InternationalEconomic Order: Some Conclu­ On the second day of the conference, the kind of sions. " "The Club of Rome, " he said, "is today presenting world system that the Club of Rome is committed to was a proposition fo r a New World Order based on 'A n Inter­ described in a revealing way by U.S. Senator Claiborne Community World System' which will gradually replace Pell. Identifying himself "as proud to be a member of the the present International World System. " Wh at he envi­ Club of Rome as I am to be a U.S. Senator," Pell made sions is a "dialogue of civilizations based on the "true the fo llowing point: "The Roman, Persian, Egyptian, human and social values of peoples rather than based on a and British empires provided an unprecedented degree world merchant economy. " Such a cybernetic system, as of security and prosperity to the world. Although they he describes it, is the only alternatlve the world has fo r eventually broke up because of their SUbjugation of solving the problems of the fu ture: overpopulation, overur­ populations, they provided a good model for us today to banization, fo od shortages, ecological deterioration and so map the fu ture." fo rth. Nationalism is not the answer, "The events in Iran Various "case studies" of how to create "regional should lead us to understand that the modelfor the universe blocs" were then laid out. During the discussion period, is not an industrial society which is a super-consumer. " Christian Curtis, an adviser to Mr. LaRouche, was called UNITA R, as the title of Guernier's presentation in­ upon. Expressing "astonishment at the ineptitude of the dicates, does not believe in the nation-state. Or put ideas being expressed here today," Curtis commented: differently, they wish to turn the clock back to the dark "As most of you in the audience know, Mr. LaRouche ages, before emergence of nation states, when "regional has outlined a straightforward and workable world de­ communities" were dominant, fo r example, the Hapsburg velopment approach: rapid development of thermonu­ empire. clear fu sion power, the transfer of heavy industry, not the Guernier's interview with our U. N. correspondeni }ol­ Club of Rome's 'appropriate' technologies, to the Third lows. World, and the establishment of an International Devel­ opment Bank to financethese transfers." Q: How do you plan to go about getting people to accept Despite several attempts from the dais to interrupt your regional/global schema for lowering consumption, Curtis, considerable interest was aroused in the audience decreasing population growth, and so forth? to this presentation. Curtis was complemented by several A: It is obvious that if we ask the people of the Third. Third World representatives for presenting an alternative World to go along with the regional community idea to UNITAR's approach and was asked for further doc­ that we have, they will have some objections, some umentation of the Club of Rome's NATO links. difficulties. What we have to do is make the people Again, the disorientation set in among the conference change. What can we do? First of all, we have to convince organizers. When peU was asked by EIR correspondent the people, talk with them. We have to put our hopes on what his evaluation was of the charges that the Club of the few people, the few chiefs of state who are ready to Rome was a NATO branch, he said, "I'm having trouble think like us. For example, in Africa, President Senghor fo cusing today. I can't seem to focus on what is going on of Senegal . He is absolutely open to this problem. Hehas around us, on what you are saying. I'm very spaced out just set up a fo undation whose name is the Foundation today." Senghor of Senegal, which is very close to us ....

EIR May .27, 1980 National 57 During the next month we will have meetings in But our problem is still a problem of power .... Dakar, in Paris, in Berlin, in Rome with the foundation Our key to power is the ecology mooement, the in order to build an audience receptive to this idea of environmentalist parties. The Club of Rome started these creating what we call an Atlantic-African Community. parties. The ecology movement, these parties, are very That is to say, a community going from Angola to useful to us because they go across borders, because they Mauritania, with Zaire, with Nigeria, with Cameroon, encompass both the left and the right, and also the with Chad, and so on. This is very important. middle. People don't trust politicians, but they do trust I have here the April 23 issue of Jeune Afrique. There the environmentalists. If the ecology movement is well is a very interesting article by Kojo of Togo. He says that managed, with good people-which is not exactly the Africa must abandon the approach of political revindi­ case because there are a lot of young people who don't cation and must instead resort to organization and meth­ know if they are going left or right-then you will see od. Today, he says, small countries in every part cannot whole populations beginning to change their minds on influence the business of the world. They cannot make many things, and then the chiefs of state will have to their voices heard in the developed nations. There is only change their minds too. one possibility-that they get together. Khojo has ap­ proved the Club of Rome report on the necessity of Q: Are you having much success in the United States? promoting big economic spaces, or regions. Thus, we A: It is very difficult to change the minds of people in this have here a man we can trust. As he could not come here country. For example, on the consumption of oil. As you to this conference, I will go to see him and tell him the know, in the United States, you are consuming three results of the conference. times the energy consumed in France. When Carter says Tomorrow, at the closed meeting of the Club of something about this, all the country goes against him. Rome and UNITAR, we will propose to Mr. Waldheim to set up a commission of eight very high level people Q: Ten years ago the Club of Rome published the book from the Third World, very high level people, in order to Limits to Growth, which laid out a schema for reducing study over the next three years this problem of regional­ consumption and cutting the earth's population by one ization, giving reports every three months to Mr. Wal­ to two billion by the turn of the century. What is the dheim. This is my proposal; I submitted it to Mr. Wal­ relationship between the proposals put fo rth in that book dheim 10 days ago. These people will then go around the and the notions of regionalization and lowering of con­ world, see the people, see the chiefs of state, talk with sumption discussed at this conference? them, and say, "Here is the problem. What do you think A: I think that regionalization puts the people inside a about this? What are you doing?" region much more aware of their own problems. For example, if you take a small country like Senegal, with 6 Q: Have you had many problems in getting your ideas or 8 million inhabitants. They are not aware of their accepted? problems. They are not aware of their problem of popu­ A : Yes, of course. The big problem is the national leader lation, of over-population. They are not aware of the in a country. By definition, a chief of state is highly problem of consumption because they have international nationalistic; he is not willing to subsume his country's aid. Any moment that they have some difficulties, there national interest to a higher allegiance. Look at Giscard is somebody to give them aid. They are not responsible d'Estaing, for example. He is very nationalistic. But he is for their own situation, fo r their own future. People can not totally closing the door on us. Last year he gave an be responsible for their fu ture only if they are big. This is interview to Paris Match that was straight Club of Rome, a fa ct. The Chinese are completely aware of the need to saying that over-consumption in France has destroyed regionalize. India is beginning to be aware. They have French civilization. The head of the French electricity difficulties; they have some very bad administration company is very close to the Club of Rome and has much problems. But they are aware of what we in the Club of influence on Giscard. Rome are saying. We have in the Club of Rome a very We have a set of chiefs of state very near to the CI ub high-level man, very intelligent, Ramesh Thapar in In­ of Rome. For example, we have Pierre Elliot Trudeau in dia, who is very well known and one of the greatest Canada, Olaf Palme in Sweden, and the new one in members of the intelligentsia. He has told me that his Sweden-he has exactly the same ideas as the Club of people in India are completely aware of the problems we Rome. Kreisky in Austria. We have connections into are talking about. So India is becoming aware. Indonesia Indira Ghandi, also to Giscard d'Estaing. Also to the is beginning too to become aware. Mexico, Egypt are Prime Minister of the German Republic. Also in the completely aware of the problems. And we work with U.S.S.R. For example, in the U.S.S.R. we have Gvishi­ them, and we show them their problems and the solu­ ani, the son-in-law of Mr. Kosygin. tions.

58 National EIR May 27, 1980 The success or failure of informed persuasion is inte­ grally related to the quality of leadership. Politicians need to enlist the assistance of other societal leaders to devise and implement an appropriate program of in­ formed persuasion .... UNITAR SPEAKS By relinquishing certain short-term goals, such as increased consumption in order to release funds fo r capital investment, a nation can procure long-term ben­ 'How we'll regionalize efits, such as increased economic development. ... Regional cooperation and integration can also pro­ the world' duce situations in which each participant gains more than it loses. Hence the transfer of partial sovereignty to a regional organization could be treated as a loan of Th e fo llowing are excerpts fr om a paper and presentation sovereignty in exchange for increased benefits.. .. entitled "Regionalism: Th e Problem of Public Support" To transform this apathy and opposition into sup­ by Th omas E. Jones, a consultant fo r UN/TA R and the port, developing nations would need to supply persuasive Hudson Institute and a self-describedfu turist. Jones has evidence that the developed nations-as well as the world authored a book Options fo r the Future, to be published as a whole and future generations-are likely to benefit by Praeger next month. Do not let his terminology disorient fr om the recommended restructuring of the international you. He means " brainwashing. " economic system . The perceived tone of the demand for the NIEO would have to change fr om rhetorical confron­ The effective mobilization of public support must tation toward synergistic cooperation .... constitute a crucial ingredient in recipes for implement­ This sudden shift in perception and motivation fre­ ing and maintaining increased regional cooperation and quently springs from the occurrence of a threatening integration oriented toward the evolution of the New crisis and the graphic, believable depiction of two con­ International Economic Order .... trasting types of possible future: At the core of public opposition to economic region­ • likely collective disaster (or continuation of exist­ alism lies the fear that it runs counter to national and ing disaster) if current patterns of divisive behavior personal self-interest. Even when bound by a loose eco­ persist. nomic cooperation agreement, a nation may be called • deliverance from disaster and to a desirable fu ture, upon to act in a way that infringes upon its perceived but only if the participants in the situation cooperate to national self-interest.. .. make an appropriate response to the crisis. An attempt by a national government to force its History and the social sciences testify to the effective­ citizens to participate in economic regionalism would ness of presenting images of conditional deliverance, as not only abrogate fr eedom; it could easily provoke op­ well as to the failure of such "repent-or-perish" warnings position. Even if political coercion would suppress wide­ when they go unheeded or are unrealistic .... spread dissent, it would not evoke the kind of popular The most effective motivation appears to be mediated support needed to make economic regionalism a thriving by im ages of disaster and deliverance operating in tan­ enterprise. dem, with emphasis placed on the latter. Crisis and the Nevertheless, recognized societal incentives and dis­ danger of disaster can arouse success-oriented people to incentives play crucial roles in sustaining habits and act constructively .... Yet images of catastrophe, intended promoting the adoption of new ones. to become self-negating, can become self-fulfilling when Despite the importance of such sanctions in buttress­ unaccompanied by an image of an attainable attractive ing voluntary support, they cannot effectively replace it. future. Conversely, positive expectations induce con­ The mobilization of public support for the regional structive, reward-oriented "achievement motivation", strategy depends on the use of informed persuasion to which is more likely to lead people to attain their goals motivate voluntary changes in attitudes. Such persuasion than is "fear-of-failure" motivation. To stress the impor­ is based on carefuL analysis and appeals to enlightened tance of presenting a desirable alternative future, the self-interest. term "conditional deliverance" is here used instead of The specific procedures for appropriately modifying the more negative "provisional catastrophism." ... the societal information flowvary from society to society. Hence credible forecasts of conditional deliverance Yet emphasis falls on dissemination of relevant infor­ .can be used to promote changes in perception, motiva­ mation via the educational system and communications tion, and action that are conducive to the mobilization of media, supplemented by group discussions .... popular suppott for the regional strategy.

EIR May 27, 1980 National 59 Congressional Calendar by Barbara Dreyfuss and Susan Kokinda

garchic fa milies who run NATO would push for the total removal of NATO role in drug also run the international narcotics regulation over trucking. The Ken­ enforcement mooted trade. Besides N unn's chairman­ nedy source was confidentthat they In testimony before a Senate ship of the investigations subcom­ would be able to push Howard to committee, Joe Biden (D-Del.)­ mittee, Biden serves on the Foreign produce a second draft closer to the often called the senator from Relations Committee, the Intelli­ Kennedy decision. NATO-reported that he has be­ gence Committee, and chairs the The delay created by Howard's gun initiatives within the NATO subcommittee on criminal laws. He vacillation means that the June 1 alliance "to attempt to develop a is using all of his sensitive commit­ deadline which Congress was la­ multilateral narcotic strategy with­ tee positions to carry out a major boring under will probably pass in the NATO countries." Biden investigation of U.S. narcotics ca­ without final passage. That dead­ stated that "in November of last pabilities. line was the result of a pact reached year, I presented a plan to NATO between Congress and the ICC last which has been well received and is fall. The Interstate Commerce beginning to bear fruit." Commission had been "deregulat­ Biden's revelation came in the T rucking dereg mark-up ing trucking by fiat." Congress de­ context of a "turf battle going on in set in House manded that the ICC stop that the Senate over jurisdiction over After several weeks of delay fol­ practice, at least until June 1, at narcotics abuse. Senator Dennis lowing Senate passage of legisla­ which time it would have a bill DeConcini (D-Az.), a fo rmer pros­ tion which largely deregulates the passed which would clarify Con­ ecutor in his home state, has intro­ trucking industry, the House sub­ gress's intent on trucking regula­ duced S.R.207 to create a select committee on transportation of the tion. Sources report that the ICC is committee on narcotics abuse and public works committee is circulat­ prepared "to zing a few deregulat­ control. Similar to the House com­ ing a draft House version of the ing regulations" out after June 1, to mittee created by Lester Wolfe bill, pursuant to a May 20 mark-up. shake Congress up. some years ago, the select commit­ Capitol hill sources report that tee would not be able to generate or House subcommittee chairman pass actual legislation, and would James Howard (D-NH) has been mainly be used as an information under enormous pressure from S enate committee backs gathering and publicity generating both the trucking industry, which down on CIA oversight entity. Senator Sam Nunn (D-Ga.), opposes deregulation, and the ad­ The Senate Intelligence Com­ chairman of the Senate Permanent ministration, which supports dere­ mittee, which had earlier jettisoned Investiga tions Subcommittee gulation. The result has been sev­ an omnibus intelligence charter fo r which has embarked on a series of eral weeks of vacillation (House the CIA, backed down again in a hearings on organized crime, nar­ mark-up of legislation was expect­ battle with the administration over cotics and labor racketeering, and ed in early May) and a draft version prior notification of congressional Biden have strenuously opposed of the legislation which has suc­ committees in the event of covert DeConcini's resolution. Nunn, too, ceeded in pleasing nobody. special operations. is heavily involved in NATO Trucking industry sources re­ The original Senate legislation Biden's testimony gives evi­ port that the draft essentially dere­ called for the administration to no­ dence that there is more than ego gulates the industry to the same tify the two intelligence committees involved in this turf battle. Biden extent as the Senate version. At the prior to all significant intelligence says that he and Nunn are engaged same time, sources close to Senator activities, including covert opera­ in a well-thought out strategy to Kennedy who was an initiator of tions. In the face of an intransigent "upgrade" U.S. narcotics intelli­ deregulating trucking, are disap­ administration, the committee fi­ gence and enforcement capabilities pointed that the legislation does not nally agreed to codify existing by integrating them into NATO. In go far enough, since at one point Carter administration practices in fact, the predominantly British oli- Howard had indicated that he hopes of at least maintaining the

60 National EIR May 27, 1980 status quo with future administra­ subcommittee would vote to roll 7 and it is $1.3 billion less than the tions. In effect, however, the bill back the tax no matter what the Senate version. gives the president ultimate deter­ Treasury Secretary said. "The oil The major differences between mination in what he will tell Con­ import fee is dead," he told report­ the two budgets are the spending gress. The major provisions are: ers. for defense, income security and • reduce the number of Committee sources said that an ecuation. The Senate bill allocates congressional committees who are informal nose-count showed 17 of $8 billion more for defense than the notifiedfrom eight currently, to the the subcommittee's members in fa­ House bill. intelligence committees. vor of repealing the tax. House • permit the president in "ex­ Speaker Tip O'Neill (D-Mass) stat­ traordinary circumstances" to limit ed that a resolution opposing the prior notification to eight congres­ fee would pass the House floor"in D raft bill on way sional leaders. a walk." Miller and a team of ad­ to final passage • ministration lobbyists spent the call for prior notice of the two By a voice vote the Senate Ap­ time before and after his testimony intelligence committees of all "sig­ propriations Committee May 13 trying to persuade sub-committee nificant" intelligence activities ex­ adopted legislation that appropri­ members to back the fee. cept when, under undefined cir­ ates funds for registering males fo r cumstances, the president deems it Congressional efforts are get­ possible military service. The bill ting a boost fr om U.S. District necessary to withhold prior notifi­ for draft registration now goes to cation. Court Judge Aubrey Robinson the floorof the Senate where action A similar presidential discretion who ruled on May 13 that President is expected sometime next week. exists in terms of after-the-fact in­ Carter had overstepped his author­ The bill passed the House of Rep­ formation provided to the commit­ ity in imposing an oil fee. The judge resentatives on April 22 by a vote of declared that the President does not tees on mission details, intelligence 218 to 188. have the authority to restrain gaso­ failures and intelligence illegalities. Senato r Mark Hatfield (D­ line consumption by imposition of Ore.) who has been the chief oppo­ a fee or tax. The White House plans nent of the bill, .offe red several to appeal the ruling to the U.S. amendments to it. The primary one Circuit Court of Appeals for the O pposition to oil import was an attempt to cut the $13.3 District. Senator Bob Dol e (R­ fee mounts million that the administration has The Congress is mobilizing op­ Kan.), the chief sponsor ofthe Sen­ requested for the registration down ate's proposal to roll back the im­ position to the President's oil im­ to $4.7 million, which would have port fe e, said yesterday thaf the port tax of 10 cents a gallon, which been only enough to prepare fo r Judge's decision would give Con­ was proposed by Pre sident Carter registration after the president or­ gress "more time to mobilize forces in early April . The Senate on May dered a mobilization in an emer­ to kill this ill-advised measure for 13 voted against the tax in a proce­ gency. good." dural vote, 75 to 19. The House is This was defeated in committee. also moving to kill the tax,with the A proposal by Hatfieldto include a House Ways and Means subcom­ check-off for conscientious objec­ mittee planning to vote May 15. tors on the draft registration cards A vote scheduled for May 14· B udget resolution was accepted by the Committee. was postponed one day when to be finalized Hatfield is now threatening to Treasury Secretary Miller request­ On May 12 the Senate passed a filibuster the bill on the floorof the ed that he testify before the sub­ resolution for the 1981 budget, es­ Senate. He told other Senators that committee on why the tax is neces­ tablishing a balanced budget of he will "Debate on the floorat some sary. Subcommittee chairman $613.1 billion. The final vote on the length" on the legislation. Whether Charles Yanik (D-Ohio) said that resolution was 68 to 28. The House Hatfield has much support is uncer­ he was certain a majority of the passed their budget resolution May tain.

EIR May 27, 1980 National 61 NationalNews

elected for Carter, stick with him. "If LaRouche campaign was reported today someone from my delegation decides to from Samuel Shannon, Financial Sec­ go for let's say Kennedy at the conven­ retary, Carpenters Local 162, San Ma­ Carter campaign keeps tion, the rest of the delegates would take teo. issue and try to unseat him," declared The San Francisco Chronicle known tight watch on delegates the NEA coordinator for Oklahoma. for its promotion of California's kook Very nervous that the supposed ground­ culture, attempted to grill Committee swell of support for President Carter in spokesman Tom Hunter throughout the the primaries is actually very thin sup­ press conference. Drawing on a slander­ port, the Carter campaign is making a California labor leaders ous article published in the drug con­ strenous effort to hold in line their del­ nected New West magazine, the Chron­ egates. Between now and the convention back LaRouche icle reporter characterized LaRouche, the Carter-Mondale campaign intends Eleven California trade union leaders an internationally respected eCQnomist, to wine and dine delegates to ensure announced the fo rmation of a California as a shady character with obscure con­ they stick with the President. An elab­ Labor Committee to support the presi­ nections. Does LaRouche actually exist orate delegate tracking system is in place dential candidacy of Democrat Lyndon he asked? in campaign headquarters, with the LaRouche May 14 in San Francisco. Hunter replied that he was acquaint­ , names of delegates, their social and po­ Two spokesmen for the committee, Tom ed with LaRouche's background, his litical history and "concerns" all on file Hunter, chairman of the San Mateo role as a fo under of the U.S. Labor in a computer. "Our goal is to develop Building Trades, and Charles Sutter of Party, and the allegations that La­ a close working relationship with each Lathers Local 65, San Francisco, pre­ Rouche is variously "a communist", and delegate by convention time," declared sented the founding statement of the "nazi", "CIA"'or "KGB" . Tom Donilon, Carter's delegate coor­ group to Bay Area press, including the "We in the labor movement have dinator, "The Carter operation will be San Francisco Chronicle, the San Fran­ been called most of those things so I unrelenting." Every dellgate gets a cisco Examiner, NBC radio, KPF A ra­ conclude that Mr. LaRouche is very phone call and is being invited to the dio and others much like us," said Hunter. "We are White House at least once. 1 ne statement, drafted by Hunter, supporting Mr. LaRouche because of The Carter campaign's fears are well identifies LaRouche as the "only can­ his ecoQOmicprogr am." grounded. The Washington Post did didate a Labor Leader can feel comfort­ telephone interviews will delegates from able supporting .,. " It has been mailed several states and found that in fact as an open letter to one thousand trade some of Carter's delegates are slipping union leaders throughout Cali(ornia. Massachusetts supreme away fast, in particular in Michigan. "We can rally behind LaRouche, "I've been a little disappointed in the who believes that we can once again judicial court upholds president's leadership," declared Nancy grow industrially as a nation, lower in­ Waters, a Carter delegate from Muske­ terest rates, stop inflation and put all of Spring decision gon. "Auto plants are closing all over our people back to work and once again The Massachusetts Supreme Judicial Michigan. Every time I pick up the raise the standard of living every year Court ruled May 13 that Earle Spring paper I read he's bungled something for all the working people in America," should have been allowed to die peace­ else." the statement explains. fully instead of being kept on life sup­ The state Carter campaigns are also Hunter told the press that the com­ port systems for nearly a year against working hard to keep delegates. In Tex­ mittee had rejected any possibility of a , his family's wishes. The Supreme Court as, where 19 percent were uncommitted "lesser evil choice for labor in this pres­ said that Probate Judge Sanford Keedy in the non-binding primary, the Carter idential election, since all the other can­ had answered the key '(ethical) question people used extensive telephone trees to didates, Republican as well as Demo­ in his original decision when he ruled get people to the caucuses and will hold crat, are busy talking about austerity, that Mr. Spring "would, if competent, several meetings with Carter delegates increasing unemployment, continuing choose not to receive the life-prolonging before the state convention in June to inflation ..." treatment." ensure "that we don't have slippage of Labor Committee initiators had re­ Earle Spring, it will be remembered, our delegates," declared the coordinator ported an enthusiastic response to the became the center of a major effort by for the Houston area. open letter from trade unio{l leaders the LaRouche campaign last winter to The National Education Associa­ throughout the state and have invited mobilize international opposition to the tion, which organized their members them to meet Lyndon LaRouche at the Franklin County Probate Court decision around the country to run as Carter AFL-CIO Legislative Conference in to allow Mr. Spring to "die with digni­ delegates, is also making sure that the Sacramento on May 19. ty" at the request of his family. While several hundred delegates they have An additional endorsement of the the Carter administration refused to in-

62 National EIR May 27, 1980 Briefly

tervene, opposition to the euthanasia gulation would destroy the trucking in­ decision came from all over the world dustry and the union. He issued a stern • RADICAL environmentalist as well as the nation and included such warning to Congress that the Teamsters Richard Falk, a proponent of var­ prominent figures as Dr. Emmanuel were not going to capitulate to deregu­ ious "anti-materialist" ideologies, Tremblay, leader of the French Right to lation the way its opponents in the Sen­ is now engaged in a bitter legal Life movement. This effort succeeded in ate finally did. fight with his stepfather to obtain stopping the court ordered euthanasia $1 million from the estate of his and restoring Spring to his kidney di­ recently deceased mother. Falk's alysis treatments. Mr. Spring, when in­ action has shocked certain leading terviewed at the time by medical profes­ Kennedy family in real Princetonians, several of whom sionals commissioned by the LaRouche estate scandal were already reviewing charges by campaign, stated quite clearly that he an Ad Hoc Alumni group that did not want to die. The Kennedy family has saved at least Falk should be dismissed from the The Supreme Court's unanimous de­ $4.4 million in Cook County, Illinois, university for his advocacy of cision stated that not all such life and real estate taxes over the last three years extremist "environmentalist" ac­ death questions involving "mentally in­ through undervaluation of the Mer­ tivities. competent" individuals have to come chandise Mart, a building complex before the court. Most decisions should which is the cornerstone of the family's be left up to the physician. Various fo rtunes, according to a report in the • SOURCES CLOSE to Senator circumstances should be taken into ac­ Chicago Tribune. May 14 Sam Nunn (D-Ga.) are upset that count including "extent of mental im­ The paper claims that former Cook Edward Muskie's appointment as pairment, the novelty of the treatment County Assessor Thomas Tully under­ Secratary of State "preempted" a (Le. new medical technologies-ed.), the valued the mart by millions of dollars, full Congressional investigation family's opinion, risks involved," and so resulting in huge tax savings for the into President Carter's role in the fo rth. Kennedys. Tully first assessed the prop­ recent Iran "rescue mission" epi­ erty in 1976 at $57 million. The Pruden­ sode. These sources claim that "all tial Insurance Co., which granted the hell would have broken loose in Kennedys a loan against the Mart in the Congress" if Warren Chris­ Teamsters, LaRouche 1976, put a value of $84 million on the topher had been named to succeed building. Tully's underassessment con­ Vance. They are now hoping that supporters rally tinued during his tenure as county as­ a "limited strategic humiliation" sessor and has been followed by his for the U.S. vis-a-vis the Soviet against deregulation Tribune precedessors, the claims The Union will "accomplish what that 299 Detroit Teamsters local and Citizens paper also reports that during the time investigation would have done: for LaRouche, the campaign organiza­ Tully was assessor, the Mart was rep­ galvanize the country for dump­ tion of Democratic pre-candidate for resented by Joseph Roddy, Tully's law ing our current do-nothing mili­ president, Lyndon LaRouche, held a partner before and after he left the of­ tary posture." joint anti-austerity rally in front of the fice. downtown Detroit federal building May The Mart is owned by the Merchan­ 5. Over 200 chanted and carried signs dise Mart Owners, a partnership of • THE HOUSE Science and attacking Carter economic policies, in trusts set up for the relatives of the late Technology Committee this week particular, trucking deregulation. Joseph P. Kennedy, including his son, approved $12 million for "an en­ Detroit itself is now being ravaged Sen. Edward Kennedy. Kennedy report­ ergy innovation program" that by budget cuts and the collapse of its edly owns approximately a 13 percent has produced a solar-powered auto industry. Rally leaders pointedly interest in the Mart. In a 1978 financial outhouse and a solar-powered addressed their attacks to Federal Re­ statement, Kennedy claimed that his in­ doghouse. The Department of serve chairman Paul V olcker as well as terest in the Mart was worth between Energy-funded program was de­ the president. Volcker's high interest $2 and $5 million, whereas associates of fended by New York's Rep. Rich­ rate policies have done the most damage Kennedy told the Tribune that Kenne­ ard Ottinger, who first admitted to the economy and living standards. dy's share actually might be as high as that the projects "might seem lu­ Ted Kennedy was .also attacked as the $166 million. dicrous and lend themselves to outstanding Senate spokesman fo r In 1976 and 1978, Kennedy flew to ridicule," but then insisted that trucking deregulation. Chicago to attend fund-raising dinners "they do have merit." IBT local 299 President Bob Lins, for Tully, who is now under investiga­ rally cosponsor, sent his business agent tion by the U.S. Attorney Thomas Sul­ to address the rally. He said that dere- livan.

E1R May 27, 1980 National 63 Campaign 1980 by Kathleen Murphy

tional thought process es," Felix that he never had and never would the Fixer is applying his economic make Bush's membership in the genius to the Illinois Republican's elite Trilateral Commission a cam­ campaign platform. Under Roha­ paign issue. tyn's tutelage, Anderson has added Reagan's vow startled many of to his already proto-fascist pro­ his grass-roots supporters, who be­ gram-which includes a SO cent-a­ lieved, at least until now, that the gallon tax on gasoline-the fol­ California Governor was a staunch lowing items: a temporary wage­ opponent of the East Coast fo reign price freeze; an incomes policy, policy establishment. Their dismay whereby corporations that grant doubled when Reagan promised wage increases above government last week to keep Bill Brock on as guidelines will be punished chairman of the Republican Na­ through additional taxes; an ex­ tional Committee if he wins the pansion of youth employment pro­ November election. Brock is a grams; a reconstituted Reconstruc­ member in good standing of both tion Finance Corporation that the Council on Foreign Relations would, among other things, be em­ and the Trilateral Commission. powered to take over and run shaky corporations, and-shades Byrd warns Carter: "Felix the fixer" as of Mussolini's corporate state!-a Nomination not sewn up Anderson's Treasury "temporary national economic commission" with a mandate for In what the major media are Secretary? developing "innovative solutions" calling a "calculated sting" to The question of where inde­ to the country's economic prob­ President Jimmy Carter, Senate pendent presidential candidate lems. Majority Leader Robert Byrd has John Anderson gets his bizarre Two we eks ago, Anderson put out the word that, delegate economic program has been par­ picked up the endorsement of an­ counts notwithstanding, Carter tially solved: It seems that the Tri­ other prominent New York invest­ doesn't have the Democratic pres­ lateral Commission-Bilderberg So­ ment banker: former Undersecre­ idential nomination sewn up. ciety member who's parading tary of State George Ball. Rumor In a briefing for reporters May around as a born-again populist has it that Rohatyn is hungrily 10, Byrd-whose influence extends has recruited Felix Rohatyn as his eyeing the Treasury Department, into nearly every layer of the par­ chief adviser on economic matters. while Ball, now a partner in Leh­ ty-bluntly stated: "The mathe­ Rohatyn, of course, is the La­ man Brothers-Kuhn Loeb, will matics (of the primary process) fa­ zard Freres partner who, as chair­ stay in the background as "senior vor Mr. Carter now, but we have man of New York City's dictato­ advisor" should Anderson some­ seen him rise and fall in the polls rial Big Mac, has almost succeeded how manage to snatch the Oval depending on events. Who knows in reducing that once-great me­ Office. what could happen between now tropolis to Third World status. and· the convention. Who knows Claiming that what New York Reagan backtracks on what the prevailing issue will be. needs to get back on its financial ... In November, or at the time of Trilateral issue . feet is 'more pain and agony,' Ro­ the convention, Carter could be at hatyn has slashed services, axed Ronald Reagan is backing off his high-water mark or at his low­ municipal employees, consigned from the issue that informed ob­ water mark." whole chunks of the city to the servers say pushed him to the front Byrd's statements came just garbage heap, and proposed turn­ of the GOP presidential race: the days after New York Governor ing areas such as the South Bronx Eastern Establishment's pernicious Carey and his political ally, Sena­ into 'free-trade zones' fo r legalized control over U.S. policy. tor Daniel Moynihan, also of New gambling and other so-called vic­ According to press reports, Mr. York, called for an "open conven­ timless crimes. Reagan went out of his way while tion" and vowed not to attend it Now, characterizing Anderson campaigning in Texas recently to committed to a particular candi­ as "a very serious man (with) ra- assure his chief rival, George Bush, date.

64 National EIR May 27, 1980