What do the Russians think of Executive Intelligence Review-?

• Only EIR, among Western print-media, stated before • EIR issued a Special Report in 1983 on how beam­ and during the Reykjavik meeting that the Strategic weapons technologies would transform the civilian Defense Initiative was the only issue at stake for the economy and start a real worldwide recovery. Since Russians. The dramatic ending of the pre-summit proved 1983, EIR brought together political and industrial lead­ us right-and the liberal media wrong. ers in Paris, Rome, Stockholm, To kyo, Bonn, and else­ where in major conferences on the SOL The Russians • EIR founder Lyndon LaRouche first publicly pre­ called these meetings "gatherings of cavemen" in their sented the "beam-weapons defense" program now press! known as the Strategic Defense Initiative in Washing­ ton, at an EIR-sponsored conference in Washington in • EIR's founder Lyndon LaRouche in spring 1984 pro­ February 1982. posed guidelines for U.S. Soviet negotiations to develop the SOl in parallel and deploy it jointly. In 1986, this • In March 1983, President Reagan gave his historic approach was fully adopted by President Ronald Rea­ speech announcing the new strategic doctrine based gan. on defensive weapons that could make nuclear missiles "impotent and obsolete," EIR was the only general­ ------circulation weekly to define this as the key to reviving 1 the Western ideal of technological optimism. I I would like to subscribe to . : EIR has waged a four-year campaign to educate the • Executive Intelligence. Review for I public on SOl and build up popular support-while the I Wall Street crowd around President Reagan kept the I 1 $396 06 $225 03 $125 administration from dOing any mass organizing for it. o year, months, months, I (For foreign rates, see inside back cover) I I I enclose check or money order $ I I Name I

EIR is in the center of I Company ______the cultural battle I : Phone ( between the West I I� Address ------and the Russian Em­ I City ------pire. If you're not a I I subscriber, you don't I State Zip ___ I Make checks payable to EIR News Service Inc., P.O. know what's going I Box Washington, D.C. I 17390, 20041-0390 .. on in the world. L ______Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee Agriculture: Marcia Merry Asia: Linda de Hoyos T here are no ifs, ands, or buts about it-the latest actions to attempt Counterintelligence: Jeffrey Steinberg, to shut down the publications linked to Lyndon LaRouche, this Paul Goldstein Economics: David Goldman magazine's founder and a 1988 candidate for President of the United European Economics: William Engdahl, States-originated in Moscow, precisely as signaled by Moscow's Laurent Murawiec Europe: Vivian Freyre Zoakos recent revival and rehashing of the most preposterous slanders against lbero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus Mr. LaRouche. The question really is, whether in this Bicentennial Medicine: John Grauerholz, M.D. Year of the American Constitution, enough citizens are going to Middle East: Thierry Lalevee Soviet Union and Eastern Europe: stand up on their hind legs and defend the Constitution. Rachel Douglas, Konstantin George This week's National report has a fairly extensive review of the Special Projects: Mark Burdman United States: Kathleen Klenetsky state of the battle between the Project Democracy crowd and its

INTERNATIONAL BUREAUS: efforts to bring about a one-party fascist dictatorship here with Mos­ Bangkok: Pakdee and Sophie Tanapura cow's blessing; and the defenders of the Constitution, which means Bogota: Javier Almario Bonn: George Gregory, Rainer Apel right now: the defenders of Lyndon LaRouche and his associates Chicago: Paul Greenberg from the most flagrantlyunconstitutional effort to shut down political Copenhagen: Poul Rasmussen Houston: Harley Schlanger advocacy in United States history. Lima: Sara Madueiio An equally important facet of the fightto recover our Constitution Los Angeles: Theodore Andromidas Mexico City: Josefina Menendez is seen in the cover Feature, in which Nicholas F. Benton gives a Milan: Marco Fanini panorama of the kind of great infrastructural projects in water devel­ New Delhi: Susan Maitra Paris: Christine Bierre opment which will be indispensable to restarting the world economy. Rio de Janeiro: Silvia Palacios The article is accompanied by a plea by former U. S. Senator Frank Rome: Leonardo Servadio, Stefania Sacchi Stockholm: William Jones E. Moss for the urgency of implementing these projects. United Nations: Douglas DeGroot The world financial system is unraveling faster than our weekly Washington, D.C.: Nicholas F. Benton Wiesbaden: Philip Golub, Garan Haglund Economics lead articles-while well ahead of the "news" in other media-can report, and in exactly the way Lyndon LaRouche has ElRIExecutive Intelligence Review (ISSN 0273-6314) is been predicting. This financial collapse is accompanied by an eco­ published weekly (50 issues) except for the second week of July and last week of December by New Solidarity logical breakdown whose most frightful manifestation is the AIDS International Press Service 1612 K SI. N.W., Suite 300, Washington, D.C. 20006 (202) 955-5930 pandemic, reported on by several articles in this issue. (See the ElUVpean Hetldq/UJ1ters: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, "AIDS Alert" section of the Table of Contents for references to all Dotzheimerstrasse 166, 0-6200 Wiesbaden, Federal Republic of Germany items related to that topic.) Tel: (06121) 8840. Executive Directors: Anno Hellenbroich, Michael Liebig On page 64, historian Anton Chaitkin begins a new series in our III DellllUU"k: EIR, Rosenvaengets Aile 20, 2100 Copenhagen "American System" department, which brings back to life the battles OE, Tel. (01) 42-15-00 around the Constitution 200 years ago, when the first American III Mexico: EIR, Francisco Ofas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. patriots were fighting against the policies of Adam Smith. JfllHJn subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821.

Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washmgton D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-$10 Academic library rate: $245 per year Postmaster: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 955-5930 ITillContents ,

Departments Science & Technology Economics

46 Report from Bonn 18 Soviets launch crash SDI­ 4 Which way will A 20-year fight for development. fusion program? Washington panic? Charles B. Stevens and Robert The supposed policy-debate over 47 Mother Russia McLaughlin review recent whether to support the dollar by An empire of "bantustans." developments which indicate crashing the U.S. economy, or possible initiation of a crash crash the dollar by supporting the magnetic fusion program by the U.S. economy, has fallen to 48 Dateline Mexico Soviet Union. pieces, Dismantling the Ojinaga connection. 22 Closing of FEF an attack 6 Ban�rs oust architect of on science Brazil's debt moratorium; 64 American System Carol White of the Fusion Energy weaken President The fundraisers of the Revolution. Foundation discusses the Although Funaro is gone, the monstrous violation of elementary President's political party remains 72 Editorial rights of free speech and scientific hostile. to the policies of the IMF, EIR versus Project Democracy. enquiry committed by the and therefore, Brazil's creditors government in illegally taking over can't expect a dramatic, quick and shutting down the foundation. reversal on debt policy.

Book Reviews 8 Does Helmut Schmidt really want to back AIDSAlert 67 Aristotle versus the Manuel Ulloa? Constitution The Inter-Action Council headed 11 AIDS is triggering a new Kathleen Klenetsky looks at by the former German Chancellor TB epidemic Mortimer Adler's We Hold These has named Manuel Ulloa head of Truths. its international debt 13 AIDS holocaust enveloping commission-but back home in Africa Peru, he faces criminal indictment.

16 U.S.S.R. launches mass 10 Currency Rates AIDS testing 11 AIDS is triggering a new 17 AIDS scare hits Mexico TB epidemic A computer model shows how the 54 NDPC tells Congress: We two dreaded killers are interacting. need war on AIDS 13 Medicine 55 Is the government about to AIDS holocaust enveloping Africa. act on AIDS? 14 Agriculture 68 Burton: 400,000 are u.s. farms being "de-energized." already dying of AIDS 15 Foreign Exchange 70 Panel asks AIDS Will Japan bail out the emergency in California Euromarkets?

16 Business Briefs Volume 14 Number 19, May 8, 1987

Feature International National

� 36 Chirac-Thatcher entente 52 Lawrence Walsh indicts � fights the 'zero-option' 'Project Democracy' u By indicting Carl R. "Spitz" '" The bottom line, Chirac insisted, was that both countries agreed that Channell, the independent ] the "denuclearization" of Europe, prosecutor has set into motion a particularly the removal of series of legal proceedings that American missiles as part of a promises to bring down all the J proposed U.S.-Soviet deal, is trees in the forest of conspiracy 1 "unacceptable. " against the U. S. Constitution at old the heart of the Iran-Contra scandal. "'�;'''�'' � 38 British press asks: Are ...... � homosexuals a security Aerial view of the Friant Dam and Millerton Lake on 54 NDPC tells Congress: We the San Joaquin River about 25 miles northeast of risk? Fresno, California, taken in 1980. The dam controls Lyndon H. LaRouche, Jr. says, need war on AIDS river flows and provides water for irrigation canals. yes, they are, but not just because they can be blackmailed. 55 Is the government about to 26 Large-scale water projects act on AIDS? for a thirsty world 42 Impending financial crash After years of dithering, the There is not a famine- or drought­ sends Moscow into new Reagan administration finally stricken region of the world today , period of autarky appears to be taking some positive steps. where there do not exist blueprints All of Gorbachov's meetings with for large-scale water diversion Western dignitaries have been projects that could transform these suddenly cancelled, as Soviet 56 Elephants & Donkeys regions. diplomacy turns inward to its East Hart gets the "LaRouche bloc satellites. treatment. " 29 A commentary by the Hon. Sen. Frank E. Moss 44 Colombia's 'Project 57 Eye on Washington Democracy' mafia takes it Editor sees threat to freedom of on the chin press.

50 International Intelligence 58 Fact sheet: actions against Lyndon LaRouche and associates. What exactly has transpired in the the course of the Justice Department's bizarre attempt to suppress LaRouche's ideas.

62 Enemies of Constitution in Justice Department 'kiss Moscow's rump'

68 Congressional Closeup

70 National News TIillEconomics

Which way will Washington panic?

by David Goldman

Washington's supposed policy-debate over whether to sup­ amendment mandates automatic reductions in the trade defi­ port the dollar by crashing the v.s. economy, or crashing the cit through punitive tariffs . It was accompanied by a further dollar by supporting the v.s. economy, fell to pieces on April proposal by Rep. Don Riegel (D-Mich.) to ban Japanese 29, when the nation's largest securities firm, Merrill Lynch, securities firmsfrom primarydealerships in V. S. government put more pressing issues on the agenda: it announced a $250 securities. That did not inspire U. S. bondholders, who count million loss for the preceding trading week, due to crashing on Japanese purchases of $100billion per year to maintain mortgage-bond prices. Bond prices responded by crashing the present level of securities prices. more than 2%, wiping out gains registered earlier in the Since the V.S. government currently has no policy for week, when traders covered short positions in the off-chance the reduction of a trade deficitnow barreling along at a $170 that visiting Prime Minister Yasuhiro Nakasone of Japan and billion per year, it has no moral authority to attack the stupid­ President Reagan might come up with some accord. ity and destructiveness ofthe Democrats' trade-warprogram. Mortgage-backed bonds, a trillion-dollar market, have The prospect of financial collapse, perhaps triggered by Ja­ lose to 12 to 15% of their total value since late March, and pan's refusal to continue financingthe American budget def­ stand to plunge much more , wiping out the entire thrift in­ icit, has persuaded the V. S. governmentto back off from the dustry, as well as their market-makers. trade-war stance embodied in the mid-April imposition of Since the entire V.S. financial system has lived off bor­ punitive tariffs on Japanese electronicsgoo ds. Special Trade rowingcheap short-term money and buying long-term bonds Representative Clayton Yeutter's leash has been tightened, for the past three years, it doesn't matter which alternative and he has suddenly discovered that the Japanese have begun Washington chooses. If the Federal Reserve continues to to comply with the terms of the disputed Japanese-American raise short-term interest rates, the cost of shor-term money semiconductor agreement. will blow outthe thriftsyst em, dumping a $100billion charge It will be recalled that the trade-war policy represented in the lap of the bankrupt Federal Savings and Loan Insurance an act of desperation , following the collapse of the Admin­ Corporation. If the Federal Reserve keeps short-term money istration's effort to correct the trade deficit by devaluing the cheap, which it can do in the short term, the dollar will V.S. dollar. Now that Treasury Secretary James Baker III continue to crash, and the foreign-financed long-term bond has admitted that crashing the dollar will not reverse the market with it. The value of thrifts' portfolios and security deficit-itonly raises the dollar price of a diminished volume dealers' inventories will crash. of imports-the Administration has nothing to say on the A smoking crater now gapes, where Washington's finan­ subject at all. The Treasury's alter ego, the editorial page of cial policy once stood. Those who argued that some slight the Wall Street Journal, was reduced April 30 to demanding degree of monetary manipUlation would stave off the crisis, that the Japanese open their markets in order to stimulate at least for some weeks, may complain that the passage of American exports, forgetting to enquire whether the U.S. the Gephardt amendment to the House trade bill April 29 can still produce anything that the Japanese might want to ruined the impact of the Fed's slight tightening. Gephardt's purchase. In effect, the Wall S�eet viewpoint boils down to

4 Economics EIR May 8, 1987 agreement in principle with the liberal Democrats, despite and the phony "Reagan recovery," are over, and that the U. S. the apparent disagreement about means. must enter a drastic period of austerity . Since Baker was associated with this policy, Baker must go, the creditors Another Columbus Day Massacre? demand. A Western statesman once commented that that Com­ The notion that monetary and fiscal austerity can lower munist parties are capable of only two kinds of actions: a the budget deficit deserves nothing but contempt, for one right tum, and a left tum. The Federal Reserve has an anal­ reason that should be obvious enough: the U.S. government ogous problem. It knows how to loosen, and to tighten. For has pledged its "full faith and credit" behind a trilliondollars the past three years it has loosened, bringing interest rates of repackaged home mortgages, another trillion dollars worth down to the 6% range for Federal funds. Now it is tightening. of savings deposits, and numerous other "off-budget" guar­ Federal Reserve Chairman Paul Volcker admitted April 30 antee categories. Pull the plug on the U.S. economy, and the that the Fed has conducted "some slight snugging" of interest guarantees will be activated. rates to support the dollar. He told the House Banking Ov­ According to an analysis to be presented in EIR 's Quar­ ersight and Investigations Subcommittee, "In recent days, terly Economic Report for spring 1987, the direct effects of we have been a bit more cautious in the Federal Reserve in higher interest rates, plus their indirect effects, i.e. the trig­ providing reserves the market ...Perhaps we could be gering of such guarantees through the collapse of the savings dscribed as having a somewhat less accomodating policy, system will bring the budget deficit up to the $328-$398 reflecting in part the weakness of the dollar-a slight snug­ billion level. On the basis of conventional budget calcula­ ging approach, in the some of the market jargon." tions, the deficit cannot be reduced below the present pro­ In October 1979, the last time the dollar faced an uncon­ jected annual rate of $185 to $190 billion, i.e. $80 billion trollable crash, the same Paul Volcker flew back suddenly above the President's target. However, this and previous from the ongoing annual meeting of the International Mone­ Administration's policy of pumping air into the consumer tary Fund in Belgrade, Yugoslavia, to announce what be­ sector, through off-budgetfinancing, is coming back to haunt came fabled as the "Columbus Day Massacre," putting inter­ it, through the massive fu nding requirements of the Federal est rates on a track to the 20% range by December of the same Savings and Loan Insurance Corporation (FSLIC), the Fed­ year. The nudging-up of U.S. interest rates in the last week eral Deposit Insurance Corporation (FDIC), the Farm Credit of April, complemented by another nudging-downward of System (FCS), and the various mortgage-guarantee agencies Japanese interest rates, will impress no one. Having failed operating under the Federal Home Administration, including once, Volcker is most likely to repeat the exercise. Alan the Government National Mortgage Association (GNMA) Reynolds of Polyconomics, a consulting firmwith strong ties and the Federal National Mortgage Association (FNMA). to the Jack Kemp camp in the Republican party, now predicts that the Federal Reserve will make an additional such gesture, The present state of the budget by raising the discount rate. Virtually all of the reduction of thedeficit from last fiscal Reportedly, Volcker is terrified of the consequences of year's $230 billion level is due to tax reform, the supposedly higher interest rates; perhaps Federal Home Loan Bank Board "revenue-neutral" program adopted by the Administration Chairman Edwin Gray has told him what 8% Federal funds last year; all the increases were front-loaded into the earlier would do to the savings system. It cannot be ruled out that years of the program, and all of the decreases left for later Volcker will "fly forward"into the guns, and repeat his 1979 years, where they will not be noticed in any event. That performance. swindle has brought in new revenues at an annual rate close to $20 billion. The largest part of the "revenue dividend" The creditors' demands associated with tax reform was concentratedover the Decem­ Now, America's creditors are demanding that America ber-April period, as corporations completed repayment of adopt a "crisis-management" approach, i.e. a drastic auster­ now-forbidden investment tax credits claimed in 1986, and ity program, involving huge budget cuts, and reductions in individuals pay taxes on the rash of capital gains taken late consumption: in short, the Brazilianization of the United last year. That is to say, most of the payments came direct States. That was the message delivered to the U.S. govern­ out of corporate capital formation, to which many analysts ment by the Organization for Economic Cooperation and attribute the miserable performance of capital investment Development, whose stark warning about the expansion of during the past six months. the U.S. budget deficit April 22 marked the beginning of the So much for the reduction of the deficitthus far. For the end of Treasury Secretary James Baker Ill's political career. past three years, the International Monetary and the Bank for Baker's roasting on the front page of theNew York Times International Settlements have proposed, in effect, that the April 29, the day of the Merrill Lynch debacle, has nothing U.S. undertake not merely a politically-impossible domestic to do with the former Dallas real estate lawyer's performance austerity program, but unilateral disarmament. As matters as such; it marks a decision on the part of America's foreign stand, their prescription includes the side-effect of uncon­ creditors that the day ofthe credit-financedconsumer bubble, trollable fiscal chaos.

EIR May 8, 1987 Economics 5 Bankers oust architect of Brazil's debt moratorium; weaken President by Mark Sonnenblick

Dilson Funaro, the man behind Brazil's Feb. 20 declaration An international effort of moratorium on most of its $110 billion foreign debt, an­ Funaro's ouster came as no surprise: The Brazilian press nounced his resignation as finance minister on April 26. His has been proclaiming for weeks that he would be put out of replacement, Luis Carlos Bresser Pereira, is a compromise office "soon afterEaster. " between the bankers who pulled the rug out from under Fu­ Ever since President Sarney went on all channels of Bra­ naro and the ruling Brazilian Democratic Movement Party zilian TV last Feb. 20 with a pqwerfully clear declaration of (PMDB). moratorium on all medium- andlong-ternldebts owed private The PMDB remains hostile to the bankers' recessionary banks abroad, the creditors have been striving to get rid of policies or International Monetary Fund (IMF) intervention Funaro, whom they feared wolltid stick to his guns and make in Brazilian affairs, and are powerful enough to exert enor­ Brazil, along with Alan Garcia's Peru, the axis around which mous pressure on President Sarney. Therefore, Brazil's cred­ an Ibero-American creditors cartel could be built. Almost itors will not win a dramatic, quick reversal of the debt every week, another dirty operation to dislodge Funaro was policies enunciated by Funaro and Sarneyhimself. launched. The most effective one was the ultimatum for What is likely to go out the window, however, is the Funaro's dismissal delivered April 7 by Sao Paulo Gov. fortitude with which Funaro defended Brazilian national sov­ Orestes Quercia. As documented in EIR, Quercia's gambit ereignty and his patient insistence on world-wide financial was apparently orchestrated by the U. S. State Department, reforms which would permit debtor countries to grow. Fu­ including George Shultz's perS!Qnal Brazilian criminal con­ naro's principled stance on debt was mocked as "messian­ nections and by Charles Z. Wick of the U.S. Information ism" by the mouthpieces of international usury. The Wash­ Agency. ington Post, for instance, described him April 29 as a man Another international maneuver was run through Argen­ "who promoted the moratorium in a fruitless effort to win tine President Raul Alfonsin. Alfonsin' s envoy threatened new world lending mechanisms." bankers at the April 8-9 International Monetary Fund-World Bresser Pereira, in contrast, embodies the pragmatism Bank interim meeting in Washington that he would join Bra­ celebrated by Brazil's elites, a quality which has helped Bra­ zil's moratorium if they did not give him token improvements zil becomethe AIDS capital of South America. Bresser comes on debt renegotiation conditions; they did . "He [Funaro] lost out of the Sao Paulo business circles which helped bring by our doing this Argentine deal. That was his last chance; it down Funaro in order to press for an accommodation with left him isolated," a senior U.S banker told the Wall Street international creditors. In an interview with the daily 0 Es­ Journal. tado de Sao Paulo April 26, he gave a glimpse of his flexi­ Brazilian media, run by Brazil's powerful oligarchy, cre­ bility toward creditors. "We must make a plan very close to ated confusion about the moratorium and then amplified a what the IMF recommends," Bresser said. "We now need to hundredfold every complaint against Funaro. If reality were cool offgrowth to restore a trade surplus of around $9 billion determined by what one reads in the press, it was a daily [this year] so that we can pay more or less 50% ofthe interest miracle that Funaro remained in his post so long. Almost due on medium- and long-term loans from banks. I think the every Brazilian media pronounced that the only reasons Fu­ creditors would consider this percentage reasonable," he con­ naro remained was that PMDB president Ulysses Guimaraes tinued. insisted upon it and that President Sarney was "loyal" to his Bresser said that in order to rack up that kind of export friend Funaro. performance,there would have to be some kind of big deval­ Sarney resisted the pressures to fireFunaro, but he never uation and Funaro's 7% economic growth target would have lifted a finger against the easily identified authors of the to be cut in half. attacks. It was notorious in the press that the "palace guard,"

6 Economics EIR May 8, 1987 headed by Sarnt1('s son-in-law and personal secretary Jorge the PMOB, its president Ulysses Guimaraes repeatedly states. Murad, was the �urce of almost daily assaults on Funaro. A united Funaro group orienting the PMOB would prove a Murad teamed up with Sarney adviser Rubens Ricupero­ potent obstacle toward changing those policies. who worked diligently behind the scenes to keep Brazil in­ In his last press conference as minister April 27, Funaro ternationally isolated-and they brought young economists showed he was ready to keep fighting, and would not be inspired by IMF monetaristgnome Alexandre Kafkainto the trapped into "lower sentiments" like resentments, when his palace in March to discuss alternatives to Funaro and then country was at stake. He pledged, "I will continue debating filled the headlines for a week with scandal stories about an our country's problems in every corner of my country." He

"alternative economic plan." analyzed his ouster: "I want to say that 1 fought hard for Murad caused the ultimate embarrassment to Sarney on changes in Brazil. And you know that 1 fought hard to change the day of Funaro's resignation, by inducing the President to call in Citicorp's candidate for financeminister. On April 27 , Tasso Jereissati, the 37-year-old governorof the northeastern state of Ceara, arrived at the palace, accepted being finance Brazil's creditors are celebrating minister and accepted the staff which Murad had assembled for him: Kafka'seconomists, AndreLara Resende and Persio their recovery ojsome leverage over Arida, to make policy, and Miguel Ethel to implement it. Brazil, just as their entire dollar Ethel was the best man ("godfather" in Portuguese) at Mu­ system breaks out oj control. rad's wedding to Sarney's ambitious daughter Rosana, and was promoted for the job by Citicorp international director Mario Simonsen. Simonsen was Brazil's planning and fi­ nance minister in the 1970s; and he still holds the dubious honor of having increased Brazil's foreign debt faster than relations between rich and poor in Brazil. The changes are any other minister. not easy because those who enjoy privileges and benefits try The Citibank gambit blew up in the President's face, as to hold on to them; and most of the time, the have-nots, lack will any other effort to impose IMF-style policies on Brazil. communications power held by the most privileged." He PMOB party chiefs found out about the plan, vetoed it, and lamented, once again, that Brazil is "a nation of impunity" delivered to the presidential palace a short list of acceptable for crimes committed by the oligarchy. finance ministers. One of the two names on it was Bresser A few days before he was toppled, Funaro dared to chal­ Pereira, who had cultivated his image as what he calls a lenge the financial oligarchy, which has controlled Brazil's PMOB "social democrat" for the past decade. economy for centuries, with few interruptions. Funaro an­ After this widely reported incident, it is not surprising nounced that the days of usury inside Brazil were over. The that Sarney feared to appear at the next day's press confer­ banks would not be able to continue extorting from their ence. borrowersinterest levels 10-50% abovethe interest they paid depositors. The government limited large banks to spreads Brazil still can't pay of 4% and small banks to 5%. At the same time it reduced Brazil's creditors are celebrating their recovery of some debt burdens for farmers and small businessmen and provid­ leverage over Brazil, just as their entiredollar system breaks ed credit to state governments. The bankers went wild, out of control. Brazil itself will not be able to pay more than threatening to do their lending only under the counter. half of its interest bill, even if the PMOB were to accept Finance Minister Bresser Pereira gives lip service to Bresser'sprogram for sacrificing domestic economic growth "controlling bank commissions." But he joins Brazil's for­ and real wages for the sake of export promotion. eign creditors in wanting high internal interest rates. "The PMOB Sen. Albano Franco countered Bresser on April domestic interest rate cannot be very low, or you will have 28 by stating that the new finance minister's 3% economic flight capital," Bresser Pereira told 0 Estado . growth target was "excessively low." The senator, who is President Sarneyis now weaker than ever. Leaders of his also president of the powerful National Confederation of PMOB party, such as House Majority Leader Luis Henrique, Industries (CNI), observed, "'Three percent would be achieved who fought off efforts from radicals of the left and right for solely with the growth of agricultural production, with the immediate direct elections for a new president, arenow con­ record harvest, meaning almost zero growth for industry." sidering the idea. The PMOB-dominated Constituent Assem­ Franco offered Funaro a job as president of the CNI's bly has the power to decide the question. If Sarney rushes to Economic and Social Policy Council; and Funaro accepted. please creditors by accepting austerity programs and give­ Funaro will keep his team of policymakers together as a aways of Brazilian assets along the lines sought by theIMF counterpole to Bresser's policies,the daily Gazeta Mercantil and the World Bank, his presidency could well abort. In any reports.The debt poliCies Funaro designed arethe policies of event, the Brazilian situation remains volatile.

EIR May 8, 1987 Economics 7 Does Helmut Schmidt really want to back Manuel Ulloa? by Gretchen Small

Preparing the overthrow of Peru's President Alan Garcia, hourly State Department statements of support for Argentine was a major agenda item at former West German Chancellor President Raul Alfonsfn when a military grouping rebelled Helmut Schmidt's Inter-Action Council meeting in Malaysia there only 10 days after the Peruvian rebellion, speaks vol­ April 19-21. This was announced by a participant in the umes. meeting, former Peruvian Prime Minister Manuel Ulloa, on Alfonsfn's government has been Project Democracy's April 26 in his weekly column in his Lima paper, Expreso. special project in the region, turning "democracy" into a We in Kuala Lumpur have reached a "consensus" that Latin weapon to impose ever-harsher InternationalMonetary Fund America's debt crisis is the "most dangerous" in the world programs. By contrast, the danger posed by Garcia's nation­ today, because, while the debt problems of countries such as alist government to Project Democracy's plans to institute a Nigeria or the Philipines are serious, their problems affect kind of corporatist "bankers socialism," only grows as the only themselves, and do not threaten to take on "demogogic" international economic collapse worsens. overtones, nor become a regional issue, Ulloa wrote. Peruvian President Garcia's debt policies arebased on an Ulloa returns "illegal juridical framework," Ulloa declared, while his in­ Immediately after the aborted Air Force rebellion, Ulloa ternalpolicies are leading to economic dictatorship. The coup returned to Peru, after a several month trip to Europeand the threat followed. "Why copy the model of the seven-year­ United States. Not only did he now sport Yugoslav Princess term [of nationalist Gen. Juan Alvarado Velasco], which Elizabeth as his new wife, but hI!immediately launched into brought the country to disaster and which forced a military repeated public diatribes against Garcia's debt policies as intervention in 1975 to bring about a total change in economic "demogogic" and short-sighted, threatening to isolate Peru program?" Ulloa asked. from world markets in the long run. While Ulloa and Garcia Ulloa, a former Wall Street banker who owes his business had been declared political enemies for years, until his return career to J. Peter Grace's family company, was a key player Ulloa had maintained a public posture of support for Garcia. in the preparations for the overthrow of Velasco, a coup run Ulloa's spouting of the "economic dictatorship" line by then-Secretary of State Henry Kissinger, with the support identifies the Project Democracy hand behind the threats to of Cuba's Fidel Castro. overthrow Garcia. That is the line championed with increas­ Was this the consensus adopted by the Inter-Action ing vociferousness by Lima's Libertyand Democray Institute Council? It joins together some 70 "former dignitaries"­ (ILD), the leading institution financed by Project Democra­ including such Project Democracy operatives as the Demo­ cy's U.S. National Endowment for Democracy. Advocates cratic Party's Robert Strauss, together with Socialist Inter­ of untramelled liberal economic/>, the ILD demands that the national leaders and a couple of Soviet representatives. The "black economy" be legalized,.a program which has been announcement that, at that same Malaysia meeting, Ulloa denounced around the continent as a scarcely disguised call was named president of the Council's new International Debt for legalization of the narcotics. trade. The tremendous pub­ Commission indicates not only that such was the consensus licity and promotion given the ILD around the continent by adopted in Malaysia, but that Ulloa was handed increased Project Democracy, has helped catapult the ILD into the internationalbacking for his anti-Garcia campaign. leadership of a growing "new right"movement in Peru,which The striking silence in the United States during the April aims to replace Garcia with some form of a corporatist state. 2-4 Air Force rebellion against Garcia gave the first warning Speaking before a conference of the Peruvian Insitute for that a new phase of overt warfare against the Garcia govern­ Business Administration (IPAE), ILD ideologue Jurgen ment has been decided upon by the bankers. Not only did Schultz threatened that if Garcia does not reverse his "eco­ Washington remain silent, but the news of the rebellion itself nomic dictatorhip," the opposition is prepared to unleash "the was blacked out of the American press. The contrast with the other sendero" against the gove1'Dment. The ILD named its

8 Economics EIR May 8, 1987 most recent book, The Other Path. The name of Peru's worst Ulloa's role terrorist group is Shining Path. Therefore, the ILD's threat Ulloa's role in the matter came back to the fore on April was clear enough. 9, when Peru's Supreme Court published its decision, that The decision to use Ulloa to head up an international the state's Banco de la Nacion, must pay back to the private campaign against Garcia's debt policies-particularly any banks their share of participation in the bail-out consortium, campaign to call them "illegal"-is, however, the weakest because the government had guaranteed the loans-plus in­ flankin Project Democracy's schemings. The way things are terest earnedsince 1983! On Aprilll , the Banco de la Nacion going inside Peru, Helmut Schmidt and his Project Democ­ published an advertisement in newspapers throughout the racy friends may soon findthemselves with a convicted crim­ country, announcing that it had been forced to guarantee the inal as the head of the Inter-Action Council's International consortium "as a political decision by the economics minis­ Debt Commission! ters of the last government,"that is, Manuel Ulloa and Rod­ Even as he was meeting with his co-conspirators in Ma­ riguez Pastor, who replaced Ulloa in January 1983. Further, laysia, Ulloa was the central subject of a congressional in­ those same ministers had forced the state bank to deposit over vestigation into charges that he and Carlos Rodriguez Pastor, 30 million soles to bailout Bancoper. "The Banco de la Na­ a top Wells Fargo executive who succeeded him as econom­ cion requests of the political authorities that the pertinent ics minister in 1983, willfully defrauded the nation of some responsibilities be established, and for the good of the dem­ $200 million, in a scheme cooked up between the leading ocratic health of the country, the corresponding sanctions be U.S. and European banks, their local banking buddies, and applied against those who did not know how to protect the the implicated governmentofficia ls. The investigatory com­ economic interests of the state and Peru," the ad stated. The mittee established by the Chamber of Deputies has an­ decision to request action followed a meeting between Eco­ nounced it will release its findings by May 15. If judged nomics Minister Luis Alva Castro, Justice Minister Carlos guilty, Peru's Congress will vote to lift the parliamentary Blancas, Attorney General Jose Ignacio Tello, and the Ex­ immunity which Ulloa now enjoys as a senator, so that he ecutive director of the National Bank, Adan Seminario, they can face criminal prosecution in the courts. reported. The congressional investigatory committee was The case stems back to the 1983 collapse of the Com­ immediately established. mercial Bnk of Peru, known as Bancoper. Bancoper was one Ulloa called a press conference on April 14 to deny any of Peru'slargest banks, and its president, Luis Bertello,was wrongdoing and charge that officials of this governmenthad a former president of the National Banking Association. As done the same thing, and were merely trying to cover up for London's Latin American Newsletter pointed out when Ber­ the failure of their own economic policy. Thinking blackmail tello fled Peru in 1983 after he was charged with fraud and could call off the hounds, UllQa declared,"We had not want­ banking mispractices, Bertello was a "blue-eyed establish­ ed to enter into this ground, but they have obliged us to do ment boy," sitting at the top of local private banking oligar­ so. The investigations will begin, and will continue until chy. those who fall, fall." He promised to comply fully with the The case is simple: Bertello's bank failed, due to a com­ investigation, but then promptly flew off to Malaysia, from bination of political intrigues, and bad banking practices. whence he sent a telegram announcing that his new respon­ Specifically, Bancoper took out foreign loans, and lent most sibilities on the International Debt Commission obliged him of the money to companies owned by Bancoper's president, to postpone his testimony! i.e., the Bertello Group. Many of those companies, in tum, were shells, only existing on paper as vehicles for speculation The jet set's frog prince and capital flight. In the fall of 1982, Economics Minister During his absence, increasing evidence of the bank fraud Ulloa met with Bertello, local bankers, and Central Reserve emerged. Ulloa justified his bailout, on the basis that the Bank officials,to propose that a consortium of local and state "savings" and small stockholders of the Peruvian people had banks, and the governmentbe formed to bail out Bancoper. to be defended. But Humberto Cino, president of the minority The consortium was formed, and some several hundreds of stockholders, testified to the congressional committee that millions of dollars was pumped into the bank. Shortly there­ the majority of the original 30 billion soles was used to pay after, however, Bancoper declared bankruptcy, Bertelloand off Bancoper's foreign creditors-even though those loans more than a dozen top bank officials fled the country (some were not guaranteed by the state. Wells Fargo Bank, for say, with their suitcases full of money), and the government whom Rodriguez Pastor worked before and after serving as which had guaranteed the whole deal, was left holding the economics minister, received a quarter of the money, he bag. stated, a fact which investigators in Miami could quickly Last fall, Costa Rica agreed to extradite Bertello to face prove. trial in Peru for his role in the bank's collapse. Despite his Economics Minister Luis Alva Castro, and Central Bank best efforts to argue that a man of his social standing should head Leonel Figueroa reported that Ulloa had lied in his press not be obliged to sit in jail, Bertello is still currently in jail conference-and they had the documents to prove it. N ation­ awaiting trial. al Bank official Seminario testified that Ulloa, personally,

EIR May 8, 1987 Economics 9 had ordered the operation. The local press began calling Ulloa "the frog prince," after his latest wife announced to the press that marrying Currency Rates Ulloa was like the fairy tale; she kissed a frog, and he became a prince! A "Wanted-For Defrauding the Nation" poster for The dollar in deutschemarks Ulloa, published by Solidarid Iberoamericana, the newspa­ New York late afternoon fixing per of the Peruvian Labor Party, has been sought all over 2.10 Lima. _. Returning from Malaysia April 28, Ulloa gave a press conference announcing that his lawyers were preparing suits 2.00 against those who had "defamed" his "name and his family." 1.90 But as Lima's El Popular reminded its readers that day, when Ulloa sued the Peruvian Anti-Drug Coalition last year for 1.80 � I-. slander, Ulloa lost both the suit, and his appeal. The courts ---.,." L- -- ruled that it was not slander to state that Ulloa's economic 1.70 policies had fostered the growth of the drug trade in Peru. 3/10 3/17 3/24 3/31 417 4/14 4/21 4/28

The dollar in yen New York late afternoon fixing

Omaha SteaksmD��. 170 Since 1917 160

ISO r--...." ......

140 - "'"'"

130 3/10 3/17 3/24 3/31 417 4/14 4/21 4/28

The British pound in dollars . / 'r" lork late afternoon tbing

...... T...... � .p/>./j , . . · · · . · · ··· ···»,»,»,,,··· ---,,,�·»» · ,•. » ».» .•.•..• . •• ·· ·· ······ ···· ··· · · . . ,. Iltf Make those special occasions truly � memorablel Just try a little tender­ ten• erne •• � -. ness. CandlelighLsoft music ... and ... magnificent, aged Filet

Mignons. Perfect. Experts select and prepare each filetl Their 1.40 artistry in cutting and aging is your assurance of utmost in enjoy­ ment. Steaks arrive frozen. Complete satisfaction guaranteed. 1.30 Six 6 oz. Filet Mignons, 1 %" thick (reg. $52.95) .'...... $29.95 1.20 (plus $4 50 shiPPing handling) 3/10 3/17 3/24 3/31 417 4/14 4/21 4/28 YOU SAVE $23.00 OFFER VALID ONLY IN 48 STATES UNTIL MAY 31,1987. The dollar in Swiss francs

.. Ne .. York late afternoon fixing OR SAV E EV EN MORE , Twelve 6 oz. Filet Mignons at Exira special price of . ,...... $58.95 1.80 (plus $4 50 shiPPing handling) LIMIT OF 2 PACKAGES PER ORDER 1.70

Phone or mail order. Use major credit card and 1.60 Call Free 1-800-228-9055 In Nebr.ska phone 0·402·391·3660 collect. - .-. Order todey or write for cetelog end 10% discount coupon. � ... FREE I.SO 1""""',"" ......

1.40 Omaha Steaksa��® 3/10 3/17 3/24 3/31 417 4114 4121 4128 Dept. 1786/ P.O. Box 3300 / Omaha, NE 68103

10 Economics ElK May 8 , 1987 victim, AIDS serves as the ideal "detonator" for TB in any Computer Model Shows: individual already infected with the TB bacillus. ALthough still a small fraction of Americans are inactive carriers, med­ ical reports from around the country already cite TB as a common "opportunistic infection" among AIDS victims. In numerous cases, acute TB is actually the first indication of AIDS infection. The author's AIDS modeling group in Wiesbaden, West

Germany considered four types of interactions between AIDS and TB: AIDS is triggering (i) The weakening of immune defenses of an inactive TB carrier, by the effects of ths AIDS virus, will activate the TB TB bacillus and lead to acute TB . a new epidemic (ii) Like all diseases which stress the immune system, TB will accelerate the progression toward full-blown AIDS in a by Jonathan Tennenbaum person infected with the AIDS virus. (iii) An AIDS-infected individual suffering from active Tuberculosis, the "killer of the 19th century ," is returningto TB , may become highly infectious for AIDS. The lesions ravage the cities and towns of America, in what threatens to caused by TB in the lungs provide favorable sites for large become the greatest epidemic ofthat disease in any advanced­ quantities of AIDS virus and AIDS-infected immune system sector country in the postwar period. Afterdeclining steadily cells to escape from the body. Infectious material coughed into the early 1980s, the number of new TB cases failed to into the air by such an individual, if inhaled by another decline in 1985, and actually increased by 3% nationwide in person, might infect that person through the macrophage the course of 1986. Now reports are coming of explosive cells which l�ne the lungs and are "targets" for the AIDS outbreaks of this classical, aerosol-spread lung disease, in virus. New York and other major cities of the United States. In New (iv) An individual suffering fromboth AIDS and TB may York alone, TB cases increased by more than 20% in 1986. also be extraordinarily infectious for TB, due to the abnor­ A computer model of the interaction between AIDS and mally high amounts of TB bacillus produeed in an immune­ the spread of other infectious diseases, developed last Janu­ suppressed individual. ary at the request of U.S. presidential candidate Lyndon Of these factors , (i) and (ii) are already borne out by LaRouche, explains exactly why tuberculosis is spreading clinical evidence, while (iii) and (iv) are highly plausible, but out of control at this time . not yet documented. It is quite significant that the leading TB is a disease classically associated with weakening of French AIDS researcher, Luc Montagnier, pointed to exactly immune systems. Typically, a person infected with the TB these mutually-amplifying interactions of AIDS and TB in bacillus carries the microbe in their lungs in an "inactive an interview in the March 15 issue of lournallnternational state." The TB bacilli are "walled in" by the host's immune de Medecine. Montagnier said, "In Africa, tuberculosis can system, and can remain so for an entire lifetime . However, promote AIDS infection, which in tum accelerates the tuber­ if for some reason the individual's immune system is weak­ culosis ....TB suppresses the cellular immune reaction and ened, then the bacillus can break out of control, leading to accelerates the spread of the AIDS virus. " potentially fatal destruction of lung tissue and sometimes of Figure 1 shows the results of a computer model-run which other organs. In this acute phase, TB becomes infectious, simulated only the impact of factor (i) alone-detonation of spreading especially rapidly in areas of overcrowding and TB by AIDS-for the United States. The first curve (a) shows poor hygiene. an extrapolation into the future of the downward tendency of Thanks to vigorous public health measures going back new TB cases, based on the 6.7% per year decrease prevail­ more than a century, and thanks to the development of anti­ ing during the early 1980s. In other words, the effect of AIDS biotics, tuberculosis was on the way toward being totally is omitted. Curve(b) shows the projected impact of the AIDS wiped out in the United States and WesternEurope. Whereas epidemic on new TB cases, in terms of interaction (i) above. more than 70% of the population in urban areas of Europe at This takes into account, of course, the fact that persons con­ the tum of the century were already infected by the time they tracting active TB will spread the TB bacillus to others. We reached adolescence, in those areas today, even inactive TB see exactly the trend now being observed: TB cases begin to is only found in a few percent of mostly elderly persons. A rise again in 1986, and continue growing out of control into similar situation prevailed in the United States, until recently. the 1990s. Curve (c) represents the projected number of per­ Now, AIDS and the effects of economic collapse threaten to sons contracting both TB and AIDS. generate a holocaust of TB in America's major cities. This computer projection is highly conservative for a By progressively destroying the immune system of its number of reasons. In calculating the spread ofTB , a constant

EIR May 8, 1987 Economics 11 FIGURE 1 Detonation of T8 by AIDS

40,000 WITH AIDS

40,000 WITHOUT AIDS

o -3 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 Years from present Years from present level of health care, nutrition, and living standard is assumed, banned by the U. S. governmentas part of a blatantly uncon­ corresponding to that prevailing in the 1970s. With adequate stitutional move to shut down the PEF and other organiza­ medical care, for example, acute TB cases are usually dis­ tions associated with Lyndon LaRouche. covered early, and antibiotics are immediately administered which render the patient no longer infectious to others . Un­ fortunately, the level of medical care has collapsed catastro­ phically in many areas of the United States, including over­ crowded "inner city" areas where the danger of TB spread is especially acute. There, it is common to findopen TB cases roaming the streets, and we findthe same kinds of conditions which prevailed in European cities in the 19th-century, when TB was the major cause of death in the population. Only the low prevalenceof TB infection in the United States today, as So, Yo u compared with 19th century Europe, has prevented an oth­ erwise overdue TB epidemic in the United States so far. Wish to What our preliminary, highly conservative computer pro­ jections demonstrate , is that AIDS will act as a "detonator" Learn All About in this explosive situation, transforming the potential for a major TB epidemic into a combined holocaust of TB and AIDS. Econol11ics? The implications for developing countries are even more by Lyndon H. LaRouche, Jr. devastating: an estimated 50% of the world's population are A text on elementary mathematical economics, by the carriers of the TB bacillus. Only a full scale Waron Disease, , world's leading economist. Find out why EIR was right including immediate measures to improve housing and nutri­ when everyone else was wrong. tion worldwide, can save humanity from the growing ava­ Order from: lanche of multiple epidemics which AIDS is now setting into Ben Franklin Boobellen, Inc. 27 South King Street motion. Leesburg, Va . 22075 Author's note: Details of the AIDS-TB model are pro­ vided in a major article originally scheduled to appear in the $9.95 plus shipping ($1.50 for first book , $.50 for each additional book). Information on bulk rates and videotape Fusion Energy Foundation's magazine, Fusion. Unfortu­ available on request. nately, publication of the relevant issue of Fusion has been

12 Economics EIR May 8, 1987 Medicine by John Grauerho�z, M.D.

AIDS holocaust enveloping Africa are given to other patients who may The rate of infection and illness has now reached such recover, according to the "Panos" Re­ proportions, that the very survival of Africa is threatened. port "AIDS and the Third World." Yet the government of Zaire was one of the first African governments to react in terms of research. A three­ year-old program, called "Project SIDA," is based in Kinshasa and Exactly as EIR and leading AIDS an effective worldwide strategy for staffed by 15 Zairian, European, and authorities such as Dr. John Seale, in­ prevention. " American doctors and 15 Zairian tech­ sisted over two yearsago , a full-blown In Uganda, where 10% of the pop­ nicians. The research, which started AIDS holocaust is now enveloping the ulation-l.4 million people-are al­ in 1984, is largely financed by U.S. Africancontinent. ready infected with mv , the situation sources, the Centers for Disease Con­ According to the German review was describedin a March 21 article in trol (CDC), and the National Institutes AIDSF orschung, AIDS is killing in­ the London Economist. "Almost every of Health. According to Dr. Robert creasing numbers of children and adult in Kampala will have the AIDS W. Ryder, the American director of pregnant women in Africa. The arti­ virus within ten years. It is estimated the project, the project can follow cle, by a specialist who wishes to re­ that 16,000 people in Kampala are al­ thousands of AIDS victims-which main anonymous, presents the follow­ ready infected, but this is not even the would be difficult and prohibitively ing picture: "It is a not-unreasonable worst-hit area in Uganda. In the area expensive in the United States-be­ worst prediction that 70% seropositiv­ of the South-West, bordering Burun­ cause of low labor costs in Zaire . ity in all sexually active adults could di, Rwanda, Eastern Zaire, and Tan­ The project is looking at threestudy be reached in Africa in the next dec­ zania, one-third of the people are al­ groups: AIDS carriers, AIDS carriers ade . At that rate of seropositivity, pro­ ready infected." who are pregnant, and couples in gression among the sexually active A previous article in the Guardian which one partner has AIDS and the males will be 7% to AIDS related of Feb. 4 described the situation in other does not. The team hopes to de­ complex (ARC) and 0.7% to AIDS ,Uganda "The situation is bad, very teet the risk factors that cause a healthy per annum; for fertile women 30% to bad," one doctor from Kyoterra is carrier to come down withthe disease. AIDS within a five year period; and quoted. "At the beginning it used to "According to some theories, a little for infants 24% to AIDS within two be a young man's disease, but now it syphilis or a little gonorrhea can acti­ years of birth with another 24% in­ is no longer age specific. My landlord vate the virus," Dr. Ryder said. He fected with the virus. These predicted has lost four people in the last year, hopesto announce preliminary results figures are appalling, but are all sup­ three brothers and a nephew. People at the Third International Conference ported by our present knowledge of have stopped working. Their job is on AIDS to be held in Washington, the progress of the epidemic and the burying every day." Dr. Wilson Car­ D.C. at the beginning of June. development of the disease in men, swell, working at a hospital at Mula­ While this sort of research is a use­ pregnant women, and neonates." go, stated: "Next year we'll see the ful start, it is quite obvious from the The author goes on: "[lnfant] mor­ apocalypse. Come back to Kampala extent of the problem that any useful tality of 55% before reproductive age then ...." results will be too little, too late unless is in excess of what can be replaced by The problem of getting accurate a massive crash program is rapidly im­ the apparent maximum female fertili­ information is typified by Zaire, one plemented in the area of general public ty and the population will decline. It of the epicenters of the Central Afri­ health and sanitation in Africa and in is predicted that AIDS will increase can "AIDS belt." While some re­ theUnited States. Since the 10% level both infant and childhood mortality searchers estimate that 30-40% of the of infection of the population of New beyond this critical level and also population is infected, according to York City, reported by health com­ drastically reduce female fertili­ theFeb. 14 Siiddeutsche Zeitung, Zaire missioner Dr. Steven Joseph, approx­ ty. . . . We are still only at the begin­ does not report its AIDS cases to the imates that of countries such as U gan­ ning of this disastrous epidemic in Af­ WHO. At one large hospital in Kin­ da, Dr. Carswell's apocalyptic predic­ rica. Africa today foretells the future shasa, AIDS patients are discharged tions for Uganda may have somewhat of all other continents, unless there is immediately afterdiagn osis, and beds wider applicability.

EIR May 8, 1987 Economics 13 Agriculture by Marcia Merry

U . 8 . farms being 'de-energized' Farm fuel expenditures are drop­ The decline in inputs per acre will reduce the population ping. Farm fuel use fell 4% in 1986, potential of the United States-and the world. and will likely fall a similar amount in 1987. The dollar value of the decline last year was $1.4 billion. Overall, what these statistics show T here will be significant reductions U . S. fertilizer use will decline from is that the energy throughput per acre in crop planting in the United States June 1986, to June 1987, by at least of U.S. farmland is being drastically this summer, due to the farmers' in­ 5%, following a 10% drop the year cut back. Millions of acres are going ability to get credit, the deliberate before . Nitrogen, phosphate, and po­ out of cultivation, and back into grass, government policy to cut output, and tash use are projected at 10, 3.9, and or weeds and brush. Past EIR studies the mass rate of farm failur es. Less 4.8 million tons, respectively. Fertil­ have documented that in the case of obvious is the declineof energy inputs izer prices this spring may still aver­ com acreage, for example, the in­ per acre that is taking place. This "de­ age 10% lower than last year, but it creasing yields per acre over the last energizing" constitutes a degradation won't matter to farmers who can't af­ 150 years correlate measurably with of agriculture that will reduce popu­ ford them, or who are not farming the increase in energy applied per acre lation potential for the United States, anymore. in successive phases of the "Agricul­ and for large parts of the world. Domestic pesticide supplies are ture Revolution." Federal commodity programs call down 4%-in line with falling use. First, there was a switch from draft for an acreage reduction of 20% for Farm pesticide use in 1987 will range animals to internal combustion driven feedgrains (plus an additional 15% for from 405 to 445 million pounds of equipment, to allow for timely tillage com), 35% for rice, 27.5% for wheat, active ingredient, compared with 475 · and harvesting. Then there was the and 25% for cotton. The March 31 million pounds last year. chemical revolution, which provided USDA crop projections estimated that Large quantities of grain in stor­ soil nutrients and pesticides. Genetic 17% fewer acres of com will be plant­ age are becoming unusable due to the research provided improved seeds and ed than last year-but this is a low lack of proper conditions. The ban­ high yield hybrids. estimate. In 1986, there were report­ ning of ethylenedibromide (EDB) in The agriculture revolution-to­ edly 76.7 million acres of com plant­ recent years , has meant that the den­ come will permit the use of man-di­ ed. This year there will be less than sity of pests has practically gone out rected energy to enhance photosyn­ 65 .6 million acres. Perhaps 10% few­ of control. Experts report that as of thesis at the; molecular level. er acres of soybeans will be planted April 1987, the level of infestation in However, the current degradation this yearthan last. In 1986, there were midwesternfa cilitities is at rates never of farming in the United States is pre­ an estimated 61.5 million acres. This before seen. Wisconsin Power Co. has venting new developments, and sub­ year there may be 58 million . a pilot program to bum com, along verting past achievements. In the face This scale of acreage reduction en­ with coal , because so much grain has of the known disastrous consequences sures that there will be reductions in become unusable. Irradiation of grain­ ofthese federal farm policies, both the farm use of fertilizers, pesticides, fuel, for-storage would solve the problem, USDA and private channels have and other inputs. However, to cut and provide wholesome grain reserves stepped up' their propaganda about costs, farmers are also cutting out the for the entire world, but the method "small farms" and non-chemical or­ level of inputs on the land that they are has not been applied. ganic farming, to help farmers "ad­ cultivating, because they do not have Expenditures for new and used just" to "alternative" agriculture. The the funds to farm at the higher energy­ farm machinery in 1986 dropped by USDA has set up a new office for levels (of tillage, pest controls, crop 25%, from $5 .6 billion down to $4.5 "Small Farms." The USDA library in preservation, and other methods) they billion. In September 1986, national Beltsville, Maryland-the world's would prefer. The following is a sur­ inventories of over- loo horsepower largest agriculture library-has cre­ vey of the decline in categories of farm two-wheel drive and four-wheel drive ated an information retrieval system inputs, as reported by the U.S. De­ tractors , and of self-propelled com­ to serve the perceived new require­ partment of Agriculture, Economic bines fell 3%, 33%, and 30%, respec­ ment for "alternative agriculture" in­ Research Service. tively, from year earlier levels. formation.

14 Economics EIR May 8, 1987 Foreign Exchange by David Goldman

Will Japan bail out the Euromarkets? began to unload so-called perpetual floating-rate notes, i.e., the undated The u.s. pressure fo r "opening of markets" hopes to hook a siphon into Japanese markets. paper issued by Britishand American commercial banks. The Japanese have disengaged from their previous role as buyer of last resort of other banks' paper; their apan's bitter resistance to the and Rep. Charles Schumer (D-N. Y.), withdrawal from themarket led to the JAmerican call for the "opening of its are pushing for the "opening." virtual freezing of the entire $200bil­ financial markets" is less than surpris­ As matters stand, the Japanese will lion market in floating-rate notes. ing, considering the intent of the pro­ not loosen monetary policy, because Subsequently, Japanese banks posal. they already fear the result of the To­ created an offshore corporation, According to Washington con­ kyo stocks and real-estate bubble. frankly described as a "trash can" in sultant Richard Medley , who orga­ Opening the market will make it somebankers ' press statements, to off­ nized a congressional visit to Japan easier for money to flow out, in other load their loans to developing nations, early in April, the object is to siphon words, into the Euromarket, and make following the write-off of uncollecti­ the monetary excess from the Tokyo it easier for the Japanese to expand ble Third World debts by the Swiss financial market into offshore mar­ their own money supply, Medley ex­ and other European banks . kets. plains. Medley concedes that "there is The delegation was headed by The Tokyo stock market, where enormous resistance in the bureauc­ Senate Banking Committee ranking some price-earnings ratios have risen racy," including "deeply ingrained Republican, Jake Garn of Utah. to the incredible level of 1,000, has monetarist sentiment at the middle­ Japanese investors put $100 bil­ already experienced wild swings; aft­ level ofthe bureaucracy." In short, the lion into the U. S. securities markets er falling by a record 850 points on the Japanese don't want to print money. during 1986, but at their own discre­ Tokyo Dow-Jones Index, panic sell­ Asked about Japanese fears of in­ tion. ing on April 28 caused the Tokyo mar­ creasing the offshore exposure of their Although the Japanese lost mas­ ket to lose over 1,000 points. banking system, he added, "Yes, the sively on dollar investments, through The market stabilized later that currentsdo runcounter to each other. " the American currency's devaluation, day , and closed down only 182.55 It appears that the Japanese want the government of Prime Minister points at 22,889.86. to retain political control over their Nakasone encouraged such invest­ A projected crash of the Tokyo own financial system. Medley adds ments, as a means of buying Ameri­ market has been cited frequently by that the plan offeredby Japan's former ca's continued support for Japan's financial commentators as a potential Foreign Minister Shintaro Abe, dur­ strategic defense. detonator for a crash of the financial ing his recent Washington visit, to Now the United States is demand­ system in general. provide $30 billion in aid to develop­ ing much more: that the Japanese run However, the prospect of opening ing nations over three years, is "not an extremely loose monetary policy, its well-protected banking system to altruistic . and permit American firms to borrow the U. S. international banks and bro­ "TheJapanese want to secure their the excess at will on the Tokyo mar­ kerage houses runs precisely counter Asian and also their Latin American ket, and invest it in American securi­ to Japan's attempt to stabilize its own markets . They don't have to put any ties. financialinstitution s. strings on the aid. If they go in there All the talk about "trade in ser­ Japan is unlikely to agree to any­ and say, 'Here's a billion dollars, en­ vices," i.e., letting Merrill Lynch earn thing more than such symbolic ges­ joy it,' and then their trading compa­ brokerage fees to compensate for tures as permitting foreigners more nies go in to make a sale the next day, Chrysler's import-payments for com­ seats on the Tokyo stock exchange. what do you think the Brazilians are pact cars, has nothing to do with the On the contrary , Japanese banks have going to do? grim urgency with which the U.S. been taking measures to insulate "Obviously, they want to make Reagan administration, and congres­ themselves from threatened financial sure the Japanese will put another $1 sional visitors such as Senator Garn chaos since last December, when they billion in next year. "

EIR May 8, 1987 Economics 15 Business Briefs

Development terests, can generate movements in the in­ growth' and reducing protectionism." It ternational markets. If a country submis­ quotes the Vatican document: "Improved Japan otTers Filipinos sively and silently accepts the laws of the growth rates will make it possible to meet world market, it will be enslaved by that foreign debt commitments"; "the creation of loans for real growth market, and sell cheaply the effort and sweat wealth is to be encouraged in order to ensure of its workers; but if, in a nationalist and a broader and more just distribution among The Export-Import Bank of Japan April 27 Latin American manner, it imposes condi­ alJ ." offered the Philippines a large loan , on con­ tions, it can make the work of its citizens "There are interventionist arguments in ditions directlyopposite to those of the World worth more in the world." the essay with which one might seriously Bank and InternationalMonetary Fund. The He warned that Peru has the means at its disagree," the Journal continues, "but to any effort by the cite them would miss the statement's real money must be used for development of the disposal to counteract physical economy. OECD nations to manipulate the price back significance. The point is that the Vatican The $300 million loan offer requires that down. has decided to join the real debate . . . . This the funds be used for specific development statement makes it clear that the Vatican and projects, and not for budget support or what the U.S. Conference of Catholic Bishops are walking different paths on the role and pur­ the IMF and World Bank are fond of calling "structural adjustment" in the economy­ Trade War pose of economics ....It's clear that the i.e., austerity. professional staff producing ideas and congressional testimony for the U. S. bish­ According to London's Financial Times, Baker stays home Philippine Finance Minister Jaime Ongpin ops is working from a model committed to had wanted the Japanese loan to be used, for Nakasone government-ledredistributions of economic along with a $300 million loan from the wealth." The Journal then makes the curious World Bank obtained last month, to support Treasury Secretary James Baker cancelled claim: "The Vatican's staff ...is moving the Philippine government budget. his scheduled trip to Australia at the end of towardthe renter, tryingto integrate its goals April because of "pressing business" at with the obvious success of market-based home, presumably the visit of Japanese economies. Prime Minister Yashuhiro Nakasone, ac­ cording to Reuters April 26. "The importance of the Vatican's new Precious Metals The wire service quotes an unnamed emphasis could be considerable . Many Treasury Department spokesman, who said: heavily-indebted countries-Argentina, Peru and Mexico "I would not draw any conclusion from the Brazil, Chile, Mexico, the Philippines­ cancellation ....I would just say it's the have large Catholic populations whose bish­ coordinate on silver press of business." He said that that Naka­ ops play leading roles in forming attitudes sone was "part of the press of business," but toward public policy. . . . John Paul is now The heads of the Peruvian and Mexican cen­ denied that the cancellation was linked to preaching something different [than 19th­ tral banks met in Lima April 24 to coordi­ current turmoil on financial markets. century socialism] . Instead of a hindrance nate their actions on silver. The countries Bakerwas to have leftfor AustraliaApril to economic progress, it sounds helpful . " are leading world producers. 30 and returned May 6 on what was de­ Mexico intends to diversify use of silver scribed as a "purely ceremonial" trip. and use it to back up the issuance of currency and treasury bonds. Peru will suspend over­ seas sales, but offer silver freely in the coun­ Public H,alth try to stimulate domestic savings. Silver prices continue to rise on inter­ The Debt Bomb U.S.S.R. launches national markets and are now at $9.45 an mass AIDS ounce. Journal admits Vatican testing Peruvian President Alan Garcia says that if the price merely stays at that level, in a role in crisis Some 105 cities in the Soviet Union have set year Peru will have saved $240 million, the up laboratories with special equipment to equivalent of what Peru has spent in the last The Wall Street Journal editorialized, test for AIDS , and 300such test centers are three years for imports of wheat. seemingly favorably, on the Vatican's late planned by 1990, according to a Financial Garcia also stated that the suspension of January statement on the debt of developing Times correspondent, reporting from Mos­ foreign sales of silver was a "sovereign and nations, saying the document an "immedi­ cow April 26. anti-imperialist decision similar to that ate effect on public policy. " He quotes from the Soviet medical adopted two years ago on the foreign debt," Says the Journal: "The statement by the weekly, MUizinskaya Gazeta, in which and shows "how a small country with a na­ PontificalCommission for Justice and Peace Russia's Dr. Khlyabich, deputy health min­ tionalist vocation, and in defense of its in- proposes measures aimed at 'relaunching ister, admits that many Soviet leaders are

16 Economics EIR May 8, 1987 Briefly

• THE SOVIET UNION has worried that their country 's endemic lack of The April 26 Pravda carried a lead arti­ agreed to buy four million metrictons disposable syringes adds to the risk of catch­ cle with statistics, released April 24 by the of bread-quality wheat this year, Ag­ ing AIDS . Central Statistical Board, showing a very riculture Secretary Richard Lyng an­ "It is not unknown for Westerners seek­ poor first quarter economic performance. nounced April 30. The sale is equiv­ ing blood tests at Moscow hospitals to take Pravda extensively criticized economic re­ alent to about half of last year's crop their own disposable syringes with them, sults, a theme which has been picked up in Kansas, and will be carried out only to have them pocketed by the doctor lately by traveling Kremlin leaders . under a subsidy program designed to who uses the re-usable kind on them," says Moscow Party boss Boris Yeltsin, recapture markets lost to subsidized the Financial Times . speaking in Sofia, Bulgaria, denounced the competition,principally from the Eu­ "failures and shortcomings" of the Soviet ropean Community. economy, and was also critical of Bulgaria's economic performance. • SALLY SHELTON-COLBY, Disease Soviet Politburo ideology boss, Yegor wife of former CIA chief William Ligachov, speaking in Budapest, Hungary , Colby and an adviser to several AIDS scare had nothing but praise for the Hungarian American banks, declared during an economic model , and its "utilization of April visit to Mexico that an "eco­ hits Mexico methods of economic leadership . . . and nomic recovery" was in full swing in the financial, banking and price formation that debt-strangled country, thanks to Panic over the spread of AIDS is beginning system of Hungary." Hungary has recently President Miguel de la Madrid. to spread in Mexico. Among the items re­ been offering its services to Western spec­ Meanwhile, government figures cently reported by wire services are: ulators as a "deregulated" banking system showed first-quarter demand for steel down 17%. • The two leading mid-day newspapers available for dirty-moneylaunder ing. in Mexico City devoted their lead headlines: "AIDS: CNC [National Peasant Confeder­ • RICHARD GEPHARDT, pres­ ation] demands clinical exams of Simpson­ idential hopeful and author of the Mazzoli deportees," and "AIDS is already Technology worst piece of trade-war legislation corrupting us. Mexico is on the high-risk since the notorious Smoot-Hawley line." Big breakthrough bill, told an audience in Iowa April 24 that the Reagan administration's • El Sol de Mexico says health officials are maintaining total secrecy about rumors in gamma laser "pursuit of arms" had "busted the of 718 cases of AIDs in the vast, densely­ budget" and "broken the back of populated Nezahualcoyotl section of Mexi­ A major advance in the gamma ray laser American agriculture and many a co City: "Leaving aside contagion from project has been reportedfrom Texas . Laser basic industry. . . ." What the de­ homosexuality, AIDS can present itself researcher C.B. Collins, a physicist at the fense connection is, he did not make through manicurists, barbers, hair stylists, University of Texas at Dallas, reporteda big clear. acupuncture, ear piercing, etc., . . . im­ step forward in the development of the gam­ properly sterilized dentists instruments, as ma ray device at the spring meeting of the • THE BANKS that receive the most money fromdrug trafficking are well as vaginal and nasal secretions, throat American Physical Society inToledo inmid­ infections, sweat, saliva, and maternal April . Credit Suisse, White Weld, Bank of milk." The technology is one of the lines of Boston, and Merril Lynch, Bolivian Sen. Daniel Cabezas told EFE, the • The health director of the notorious investigation being pursued for anti-missile Acapulco jet-set resort on Mexico's Pacific weapons in the President's Strategic De­ Spanish press agency, in Rio de Ja­ Coast has declared that the town is AIDS­ fense Initiative program. neiro. Cabezas is part of a Bolivian free-but hasn't been able to convince any­ A typical gamma rayJaser, said Collins, delegation touring Brazil, Argentina, one of that unlikely fact. would theoretically be ableto produce a peak and Peru to organize a Latin-Ameri­ power output of three trillion billion watts . can Parliament meeting to discuss The total electricity-generating capacity of drug trafficking. all the world's commercial power plants is Comecon only 2.3 trillion watts . • THE TOKYO StockMarket was Collins and his associates also reported hit with the largestone-day fall in its Soviets unhappy progress toward development of very in­ history, 850 points, on April 26. A tense sources of x-rays needed for the study London observer said this is a defin­ with economic results of gamma-ray laser materials. itive signal "that the worldwide bull Ironically, the same meeting heardsome markets in stocks are over. We can Soviet leaders have been expressing their scientists denounce mooted plans for early expectnow an overall bear marketfor displeasure with the economy's poor perfor­ deployment of the SOl, saying it was not a very long time to come." mance so far this year. fe asible in the near future.

EIR May 8, 1987 Economics 17 �TIillScience & Technology

Soviets lat1Dch crash SDI-fusion program?

Charles B. Stevens and RobertMc Laughlin review recent developments which indicate possible initiation qf a crash magnetic ju sion program by the Soviet Union.

After a decade of dormancy, the U. S.S.R. 's magnetic fusion Princeton PLT tokamak experimentally demonstrated, to their program has suddenly sprung to life with what can only be great surprise, the most optimistic scientific projections of a described as a crash effort to obtain fully ignited thermonu­ 1973 U.S. Atomic Energy Commission (AEC) study for a clear plasmas within the coming months, according to lead­ five-year crash program to realize a demonstration fusion ing Western fu sion specialists and Soviet official announce­ energy electric power plant. ments. The program has both major direct and indirect appli­ Since the 1978 PLT succes$ of achieving reactor grade , cations to the Soviet "Star Wars" beam weapon ballistic 70 million-plus temperatures in a stably confinedfusion plas­ missile defense effort. The Soviet program is focused on ma, the U.S. fusion program has been put on ice. while, achieving a fully ignited magnetic fusion plasma with the T- nevertheless, ongoing experiments and technological prog­ 14 compact high field tokamak within the coming year-a ress have transformed the "high risk" projections of the 1973 goal which will not be attained until the 1990s with the AEC study into "off-the-shelf' capabilities. The magnetic existing schedules of the U.S. and Western magnetic fusion fusion program has been frozen into constant, inflation-de­ programs. flated budgets and an endless cycle of paper studies for an Ironically, the high field tokamak concept was pioneered ever cheaper engineering test reactor (ETR) , while the iner­ in the United States by Dr. Bruno Coppi of MIT in the early tial confinement fusion (ICF: laser "pellet" fusion) program 1970s, though Dr. Coppi's proposals for a compact ignition has been buried under a leaden cloak of security classification fusion experiment were ignored until recently. But the United and secrecy. States is only discussing compact ignition tokamak designs while the Soviets are completing construction of theirs . Soviet breakout The primary potential application of the compact toka­ The most shocking, and possibly sinister, recent devel­ mak to beam weapon missile defenses is to provide a com­ opment has been the sudden turn-around of the Soviet fusion pact, low-weight source of high-density, high-power energy program. Like the U.S. program, the U.S.S.R. fusion effort which can be utilized to directly power laser and particle too went into a deep freeze in 1977, though for slightly beam weapons. One possible variant includes using the com­ different reasons. The plurality of leading posts in the Carter pact tokamak for efficientstorage of high energy particle and administration was populated by the authors of the New York antimatter beams. Council on Foreign Relations' 1980s Project. which advo­ cated a strict anti-technology, malthusian program for the 'Surprising speed' United States and the Western world. This tendency was This year marks the 10th anniversary of the groundbreak­ clearly demonstrated when then Secretary of Energy James ing for the construction of the Princeton Tokamak Fusion R. Schlesinger fired Dr. Stephen O. Dean, the DOE manager Test Reactor (TFTR), which was the last major magnetic most responsible for the achievement of the Princeton PLT fusion research facility to be brought into operation within 1978 breakthrough, on the Monday following the public re­ the United States of America, and possibly the year of the lease of the Princeton scientificdata. initiation of a Soviet crash fu sion effort. Within a year of the In the case of the Soviet fu sion program, the late 1970s groundbreaking for the TFTR, researchers working on the marks the pointwhere the U.S.S.R. 's "Star Wars" program

18 Science & Technology ElK May 8, 1987 was accelerated into an all-out crash effort . This reallocation What and why of scientificmanpower and resources was confirmed in 1981 It is now widely accepted among senior U. S. defense to Fusion Energy Foundation representatives by academi­ planners that the U.S.S.R. is currently implementing "Plan cian, doctor, Nobel Laureate, and Major General of Rocket B" of Soviet Marshal Nikolai Ogarkov. This Plan B was first Forces Nikolai G. Basov and his colleagues. At the time, Dr. revealed in the West in EIR's July 1985 Special Report, Basov said that the reallocation was in response to the then­ "Global Showdown: The Russian Imperial War Plan for imminent deployment of medium-range U. S. missiles in 1988." As detailed there , Marshal Ogarkov's Plan A called Western Europe-the Pershing lIs and cruise missiles. for a near-term success by 1988. Plan B was a backup to be And indeed, the Soviet magnetic fusion program has implemented if the West initiated a serious missile defense gone into an even deeper freeze than that of the United States effort like that of the Soviet Union and maintained a strong since that time. In 1977, the U.S. S.R. initiated their T -15 defense of WesternEurope . It included a medium-term tech­ tokamak project-a far less ambitious machine than the nological and scientificbuild-up to achieve a military success Princeton TFTR, even though more advanced, supercon­ by the mid- 1990s. ducting magnets were designed into the T- 15. The TFTRhas The sudden emergence of a Soviet crash fusion program been operating for several years and the T -15 has not yet even and the T- 14 in particular is quite ominous. It is most proba­ begun operation. ble that the T -14 is directed toward realizing specific, near­ But the April 1987 issue of the Executive Newsletter of term technological components for powerful beam weapons. Fusion Power Associates carries a report of a complete turn­ about in the Soviet fusion program by Prof. Daniel R. Cohn History of the high field tokamak of MIT. Professor Cohn, who is a specialist in high field With the success of the Soviet-designed tokamak in the tokamaks, reveals: late 1960s, the United States and other Western countries "Moving with surprising speed on the construction of a built their own tokamak experiments. At this tim� , Prof. new fusion experiment called T- 14, the U.S.S.R. announced Bruno Coppi of MIT initiated a small, high-risk experiment plans to operate the new facility by the end of the year. The which was designed to take the tokamak to its technological compact, copper-coil device is designed to use deuterium­ and scientificli mits by utilizing the highest strength magnetic tritium fuel and to approach fusion breakeven condi­ fieldspossible . This was the MIT high fieldAlca tor tokamak, tions ....Compared to the almost ten years the Soviets have an experiment which was so small, it could virtually fit on a taken to complete the superconducting T- 15 tokamak, a de­ table top and had an operating plasma volume 100 times vice still not in operation, the new T -14 device was conceived smaller than the largest U. S. tokamaks at Princeton Plasma only two years ago." Physics Laboratory. The photographs document the progress on the crash Despite this, by 1974, the Alcator broke all experimental construction of the T- 14, donut-shaped high field tokamak records by exploding through the previous theoretical limit that accompanied Professor Cohn's report.

Vacuum vessel modules fo r T- 14. Each module will receive two TF One of the 32 one-turn copper coils fo r T- 14. Outer coil support coils, one on either side of the diagnostic ports . The two angled shows teeth to react against over-turning moments . Scale size of rings on each module are titanium support rings fr om which the the coil opening is of the order of l!2 -meter. Maximumfield in the vacuum vessel (0.5 mm nickel alloy) is suspended by a series of coil is 23 Tesla . Center of tokamak will be toward lower left in hooks. The titanium rings, in turn , are suspendedfrom the TF photo, electrical tabs at upper right will connect to inductive store coils. The vacuum vessel sectors are explosion fo rmed. below tokamak.

EIR May 8, 1987 Science & Technology 19 of tokamak plasma densities by more than an order of mag­ the last decade did essentially confirm all of his "high risk" nitude. Shortly thereafter, the Alcator approached the energy projections. And now, the Soviets have carried -through on confinement time-density product needed for fusion break­ Professor Coppi 's ideas. even-the point where the plasma can produce more fusion energy than the heating energy needed to maintain the plasma Potential SDI applications at fusion temperatures. I. Pulsed power and switching These spectacular results were ignored for almost two One of the major requirements for effective anti-missile years because of the small size of the Alcator. When program beam weapons is that of energy-dense power. It takes about reviews finallywoke up national fusion managers to the fact one megawatt average power of beam weapon output to de­ that the Alcator results were real , they responded by setting stroy one missile per second. And an effectivebeam weapon up a major, new Fusion Institute at MIT and removing Pro­ must be capable of destroying scores to hundreds of missiles fe ssor Coppi from management of the Alcator program. per second. This requires scores to hundreds of megawatts of On the basis of the early 1970s Alcator data, Professor average power of beam output. And laser and particle beams Coppi designed an experiment to go all the way; that is, to generally need from 5-20 times more power input than they produce a fully ignited fusion plasma. This is a fusion plasma achieve as an output. Therefore , effective beam weapons in which not only net fusion energy is generated, but enough require from hundreds to thousands of megawatts of average of the fusion energy output is absorbed by the plasma to keep power input. And this power input must generally be deliv­ the plasma above fusion reaction temperatures. At that time , ered at peakpowers ranging up to millions of megawatts and . the Coppi proposal represented a high-risk proposal costing at extremely high voltages. tens of millions of dollars , to leap-frog the magnetic fusion There are three existing ways to provide this energy input program decades ahead of schedule. More conventional, low­ in a repeatable form: 1) chemical; 2) nuclear fission reactors; field, larger-scale ignited tokamak experimental designs were 3) stored energy (capacitors, flywheels, inductive magnet estimated to cost in the range of $500 million to $1 billion. systems). Because a compact tokamak can produce bursts of Despite the fact that Professor Coppi' s concepts were not hundreds of megawatts of high-voltage output in a device followed through, other smaller experiments carried out over with a mass of tens of tons, it can outperform these three

Mock-up assembly of coils fo r the inductive energy store fo r T-14. The tokamak itselfwill sit on top of this inductive coil assembly .

20 Science & Technology EIR May 8, 1987 existing methods by orders of magnitude. two ways to pump laser beam weapons. These fusion neu­ Not only can the compact tokamak develop the required trons have an extremely high energy- 14 million electron high power outputs needed to drive beam weapons, but it can volts. More significantly, they have a large chemical poten­ do it in time increments most efficiently matched to the op­ tial because of their zero electrical charge . It therefore fol­ eration of the beam system itself. This is because the tokamak lows that these high energy fusion neutrons can be ideal for fusion plasma can be "turned on and off' in very short time directly producing the atomic and molecular excitations increments and therefore can be matched to the excitation needed for various types of lasers. times of a laser medium, for example. A second laser pumping scheme involves placing fission­ able material in the laser medium. The fast fusion neutrons II. Lasers produce fission reactions and the resulting high energy fission The main output from a deuterium-tritium fusion plasma reaction products excite the lasing medium. is that of neutrons . These neutrons can be utilized in at least Both applications have been demonstrated experimental-

COME EXPLORE THE UNIVERSE! MEADE 2080/LX3 w/MCSO $1699 MEADE 2080/GEM and 2120/GEM *112 Dew shield (8") and accessory Iray ($140 list) add 589 MEADE 2120/LX3 w/MCSO $2195 $2590 These Meade Te tescopes are completeand ready tor Accessory shelf for field tripod ($40 list) . . ... 532 viewing. They Inctude tetescope with all coated *110 dew shield (10" ) Essential! ($140 list) . . 598 optics for high transmission. mount. tripod or pier with '36 duat·axis drive corrector control box 599 legs. finderscope, low and high power eyepieces. end ($150. list) 599 complete instructions. Call or write LUMICON for full '38 declination motor & clutch ($150 list) LUMICON Giant EASY·GUIDER/Rich·Field viewer for technicat information. MCSO means Multi-Coated fl4-fl10 operation (state camera) . 5395 Silvered Optics. boosts transmission 18%.

Schmldt·ea... grlln OptiCS on German Equatorlal lIount 2080/GEII, 8" fl10wlequatoriat moun t (S215O list) . .. 5995 Multi-coatedsilvered optics, boost transm ission 18% add $149 8" fll0 Te lescope 2120/GEM, 10" fll0 w/equatorial mount and with $1699 muttl·coaled .lIvered optic. ($4400 list) . 52195 Dew shietd & accessory tray. 8" 572 10" 5144 2080/LX3 '785motor and quartz drive corrac. system ($310list) $219 5999 W/MCSO '3000 computer control system ($1900 list) add I ($3320 list) Vulpecula. M·27 is a planetary nebula, the remains of a dying 16" f/4.5 NEWTONIAN $1995 star. It is overheadin the summer sky and is easily seen with an 8" Te lescope. The faint outer "ears" are best seen using a WMICON UHC Filler to remove light pollulion. Photo by David Healy using a LUMICON Giant EASY·G UIDER and LUMICON hypersenSitized24t5 film. 30 minute exposure 14" telescope al fl6. TheM easierAlbum boo!

EIR May 8, 1987 Science & Technology 21 ly. But only fusion has the potential to realize large enough In order to be maintained, an electron beam moving in fluxesof neutrons to make this a practical method of pumping one direction must be matched by a positive return-currentin laser beam weapons. the opposite direction. In conventional storage rings and ac­ celerators, the return-current is carried along the inside wall III. Particle beams of the vacuum chamber. This type of return-current setup A more speculative application of the compact tokamak experiences high resistances and thus produces significant is that of providing an efficient means to store a high-energy, overall power losses. In the tokamak, the positive retum­ high-current electron beam. The Alcator's early experiments current is carried in the plasma and the plasma has an ex­ in 1974 demonstrated a new regime, termed the slide-away tremely low resistance to the flow of the return-current. In regime by Professor Coppi. In this regime, the tokamak plas­ this way, the tokamak could become an extremely efficient ma develops into two components: 1) a low-density, low­ means of building up and storing a high-power electron beam. temperature plasma; 2) a high-energy, intense electron beam. Experiments at Lawrence Livermore National Labora­ Prof. S. Yoshikawa of Princeton University has proposed tory over the past several years have demonstrated that plas­ utilizing this regime to produce an extremely efficient, very mas are extremely efficient at focusing electron beams and high-power compact electron beam storage ring. If success­ curbing beam instabilities. ful, this approach would improve the total stored power of The resulting high-power beam could either be utilized the electron beam a thousand-fold over existing, convention­ directly as a beam weapon itself, or to energize another beam al storage rings. But in terms of stored beam energy per system, such as the free-electron laser. kilogram of mass of the storage ring system, the improvement could be much greater than a million-fold. IV. Antimatter Existing storage rings are both large and inefficient. The Leading scientists at Princeton Plasma Physics Labora­ plasma in the tokamak permits the electron beam to be stably tory in New Jersey, who have pioneered many of the concepts confinedin an extremely small space with great efficiency. above, point out that the storage ring system could also have

'tngs agai,nst th e Foundat ion. "In thecourse of the ir ijudson l1!ld other U.S. IJel:>a(t melllt maden o secret of the fact , tna'tiJ:llley are down the FEFby any me ans j tell,atdJlCSS le g31 'details.� The entire p��e c:�j tl g

manner typical bf a ...,...... �� . Suddenly and major applications to the storage of antimatter. Again, the The concept is to initially run the T- 14 in a low plasma­ stored antimatter could either be utilized directly as a beam density, low magnetic-field mode. This permits the plasma weapon or as a means of powering a second beam weapon. to be penetrated and heated by microwaves from gyrotrons set to the plasma electron cyclotron frequency. Once the Soviet plans plasma is heated sufficiently, the magnetic field is suddenly The three photos show the Soviet T -14 compact tokamak increased. This compresses the plasma column, causing fur­ under assembly at the Troitsk site outside Moscow. Accord­ ther heating and an increase in density. This is projected to ing to Soviet scientist V. Golant, the T- 14 should begin produce the conditions for full fusion plasma ignition-a operation this year. The machine is under the scientificdirec­ condition where enough of the fusion energy generated is tion of Prof. Valerii A. Chuyanov of the Kurchatov Institute. absorbed within the plasma to maintain the plasma at fusion Engineering of the machine is under the direction of Dr. Oleg temperatures. G. Filatov of the Efremov Institute of Leningrad. The Princeton TFfR is currently scheduled to achieve The T- 14 fo llows the original specifications of Dr. Bruno simple fusion energy breakeven with deuterium-tritium fuel Coppi. It has a minor radius of one-half meter and a major in about two years. The Western European JET tokamak is radius of slightly more than a meter. The copper magnet coils scheduled to reach the same goal also in about two years, and develop a maximum fieldof 230 kiloGauss. JET has the possibility of also achieving the more advanced Following the specifications developed at MIT -in par­ goal of fusion plasma ignition. (Both TFfR and JET began ticular, the Zephyr design developed jointly between scien­ operating several years ago.) tists from MIT and West Germany-the T- 14 will utilize It is far more likely, however, that the Soviets will achieve plasma compression to achieve fusion ignition. This concept both goals first, later this year. And the Soviets will have of plasma compression was first demonstrated at Princeton accomplished this with a machine whose design did not even Plasma Physics Laboratory on the ATC tokamak in the early exist until after TFfRand JET began operating, and 10 years 1970s, and has since been explored on the Princeton TFfR. aftercon struction on TFfR and JETbegan .

few truly independent scientificinstitutions has been forced studies of the history of science; thd PEF pioneered t!te a� plication out of existence. Foundedin 1974, the PEF soongained wide of the 'phase-space geometric' methods of Gauss, recognition for its promotion of accelerated research and Riemann, and Cantor, to the mastery ofno nlinearprbcesses ion development of peaceful uses of fission andi us energy, in physics, astrop hysics, biology ; �d economic. science. for itsad vocacyof applicationsof direc te d energy technol ogy "Support for the PEE's work has come from tens of tQpu· to antim!ssile defe nse and to new production me thodS in sands . of subscribers to PEP l?Ubli£atiops, aOd .§pppD . civilian industry.an9 fo r.its detailed propo sal� for a revive d members of the Fo undation throu!fout the Uni�ed S lJ.S. spaceeff ort centering arou nd the long'::termexplo ration The PEP was granted and has mainpined the official status and colonization of Mars. The PEP is also noted for its op­ ofa nonprofit scientific or ganizati9. , to wh}ch contribu�i()ps position to the ' limits to growth' propaganda of the Club of are tax-deductible. Rome, and for itsman y published studies and sCientificcon­ "The forced closing-down of � FEP is not an .isolated ferences devoted to applications of modem technology to event, nor merelypart of a politica.l '\vitc hhuntagair!st one of agriculturaland industrial developmentof t� so-calledThird its directors. These actio ns are a di�e ct attack I.\pon freedom ' World. The LaRouche-Riemann econometric model was of scientific research an. d freed om �f speech in g� neTal; My elaborated in by an PEF team of economists , physicists, and colleagues in the United Stateshave observ ed recentmonths mathematicians, and applied to the design of economic de­ an ominous decline in independentscientific research. Lab­ velopmnt programs fora number of nations and regions of oratories research programs, not fully controlled by e and go'. v.;.� , t· . the world, includingAf rica, theMiddle India, Mexico, ernment orgiant c01p9rations, are dis- East, . bureaucracy rapidly andPeru . appearing. Instead of free scientifi enquiry app thef eatle�� "Mos� recently, thePEF has circulateddetaile d proPosals " search fo�. truth, it is increasingly Jee�-grouP .PiesS ear advanced fori ncorporating. biopbysics methodsinto a scien­ of losing contrac t�, and (;o�pUlsion to ple�. the 'sClentiqc'Wd tific crash pro gramto find a cure for AIDS. Through a series mafia'.c ��tro1lingm��or res�c� b'ldgets, .Whlch det��n€s of pri\(atescie pqficsemi narsan� public con�ere",:es. t1)e.,�F the actJ.Vltie s oi �canscl��. Unf�y � this � has 'played pioneering role intemat ionlillY ,!n bri nging tcf. .is limited the a , not to U.�. alone: "Wbere sci�tiftc �om · different gether specialists in fields of biology, bi ophysics, declines, so dOespolitical freedom." former and medicine, to discuss the AIDSpr oblem. My colleagues of the fiEF, and I, are currently " Apartfrom these and other concrete accomplishments, circulating a similar letter in the United States. Those of it is tbe PEP'scatalytic role in formulatingand disseminating EIR'sreaders wbo wish to directly support our efforts;e ither . ideas which has earned it the greatest thrclUgh scientific recognitiop financially, or �litical action, may write to .me in among researchers in diverse domains. Aided by extensive careof this magazine.

EIR May 8, 1987 * * * * * * * * * * * * * * * * * * * *

* (Cut out and save) *

* ASTON MARTIN SERVICES * * GOLD NEVER * * *

* DEFAULTS *

* -tr Use THE GOLDEN IRA to insure your retirement * savings with something safe and sound-the new * * U.S. Gold and Silver Eagle Coins. *

* HOW TO aSE THE GOLDEN IRA *

* 1. Convert your regular IRA Account * 2. Consolidate your present IRAs * * 3. Yo ur spouse's IRA * 4. SEP-IRA * KENNETH BOYD GREGORY BOYD * 5. Rollovers from job changes * PO Box 396 - Needles, CA 92363 * 6. Termination of qualified plans * 619-326-3131 * BOT DO IT TODAY­ * * BEFORE ANY PANIC HITS * * Gold-Silver-Platinum sales * * Call or send for free brochure. *

* *

*. *

* *

* * INVESTMENT METALS, INC. * * EXCELSIOR BLVD MINNEAPOLIS. MN. 5805 " 55416 * (612) �25-6050 * * (Cut out and save) *

* * * * * * * * * * * * * * * * * * * *

Tuthill's Astro Video Instructional Tapes CONSOLTING First in a series of detailed astronomical instructional video tapes by this noted advanced amateur astronomer with 28 years of ARBORIST experience. These are detailed, easily understood video tapes which tell you how to get the most out of your scope so that Available to Assist in the hobby gives you less hassle and more fun. The perfect gift for your resident astronomer. Designed for your home VCR, they show the beginner, as well as the more advanced amateur, The planning and development of how to quickly become an expert in the use of Schmidt-Cas­ wooded sites throughout the continental sergrain Scopes. Some of the subjects covered are: short cuts in set up, how to understand and use setting circles, how to United States as well as quickly and accurately align with either pole, straight talk about eyepieces and hints on advanced astrophotography. The se­ quence on optical collimation alone is worth the price. Two il:1�illThe development of urban and tapes now available: #1 Basic SCT operation - $49., #2 Ad­ suburban planting areas and vanced SCT astrophotography - $49. Get both for only $80 and Save $18. Both tapes FREE with each SCT scope we sell! These video tapes may also be rented The planning of individual for as low as $19 each. homes subdivisions or industrial parks Send a large (9" x 12" 3 oz.) MANILA Self-Addressed Stamped En­ velope for our complete information Kit including "Tuthill's Twenty-Two Telescope Tips" and the "Special Tuthill Maintenance Instructions for scopes and information on the NEW STAR TRAP POWER MODULE #1 for other scopes."

TOLL-FREE 1-800-223-1063 For further information and availability Telephone: (201 ) 232-1 786 please contact Perry Crawford '" 86 EI, 11 Tanglewood LaneJ, Box 10 Mountalnalde, NJ 07u92 Crawford Tree and Landscape Services 8530 West Calumet Road ROGER W. TUTHILL, INC. Milwaukee, Wisconsin 53224 Sim l p Yall you need. � AN ENTIRE HEALTH SPA THAT FITS INTO YOUR BRIEFCASE. " •• ,.95 Check or Money Order ONLI I.& + $3.25 tax &: shipping. LIGHT WEIGHT - STRONG - COMPACT 2 SIZES A V AILABLE: Regular and Large (Men's) with larger and stronger elastic cord.

Order today or pick up in person. BIOBOBle 1324 R'IALTO AVE. . SAN BERNARDINO, CA 92410 ------, C ALL 714-885-8416 Please send me __ regularsize or __ large I I (Men's) .size BIOROBIC Exerciser. $19.95 $3.25 I I Enclosed is + tax & shipping for each. I I Name I I Address I I I Made in U.S.A. L2�______"':� ;-;;-::::-�-;;�___ �

TIRED OF TENNIS? HAS GOLF GROWN BORING?

Weekly EIR Audio Reports Why not look into the modern hobby-amateur astronomy? This is something that will take you into the future. Don't be Cassettes left behind. This hobby is exciting, easy to learn and one of the few things the whole family can enjoy together . • News Analysis Reports A modest investment will provide years of enjoyment. We specialize in helping the beginner avoid mistakes, If you call • Exclusive Interviews us on our TOLL FREE 0-800-223-1063) you will talk to $250/Year astronomers who love astronomy and not to clerks who just want to sell you something. Our 28 years experience making telescopes and grinding mirrors makes us unique in this field. We would love to introduce you to the wonders of the Make checks payable to : universe. Have your secretary send us a large self-addressed EIR News Service, P. o. Box 17390 stamped-envelope (8" x II") for all our FREE literature. Wa shington, D.c.. 2004 1-0390 Attn : Press DON'T WAlT-DO IT NOW WHILE YOU THINK ABOUT IT

ROGER W. TUTIlILL, INC .•BX 10s6EI MasterCard and Visa Accepted. MOUNTAINSIDE, � 07092 TIillFeature

Large-scale water projects for a thirstywo rld

by Nicholas F. Benton

The approach required to avertthe catastrophic consequences of a global monetary collapse is that of the capital-intensive, large-scale �evelopment project. Credit and development policies modeled on the 1939-43 U.S. experience, empirical proof of the effectiveness of this method for pulling a nation out of depression, need to be applied to the peacetime objective of employing advanced industrial capabilities and millions in manpower, in completing major projects that will result in a qualitative transformation of the tangible wealth-producing capabilities both in the United States and abroad. For the United States, recovery would require involvement in such projects on top of efforts to overcome the over $3 trillion deficit in existing national infrastructure that has developed since 1970. It is devastating proof of the treachery of the dominant international monetary institutions of our era, that well into the second half of the United Nations' "International Drinking Water Supply and Sanitation Decade" of the 1980s, delib­ erate inaction on water development strategies has not only contributed to bringing the world to the brink of monetarycollap se, but has extended conditions of mass famine on almost every continent of the globe. It is not as if the urgent need for boldly addre�sing this indispensable re­ source-fresh water-hasn't been appreciated. That is why the U.N. devoted the 1980s to the theme of addressing the shortage crisis of this precious commodity. However, as has become clear, to date the U.N. has done nothing but act as the

right arm of the International Monetary Fund and its cynical counterparts in the East bloc, to help convince the thirsty nations of the world to accommodate to, rather than cure, their problems. The U.N., in fact, has taken it upon itself to persuade the drought-stricken nations of the Sudano-Sahel region of Africa that drought is a permanent condition of their climate, and that overuse of the land by man-in the form of growing populations denuding the woodlands-rather than underdevelopment, is the bane of existence there. This is the conclusion reached in a "Strategy for Survival" publication put out by the U.N. last year, which offers only population control and more efficient use of hearth stoves as solutions to the drought and desertification

26 Feature EIR May 8, 1987 A creek floods its banks in Virginia . How can this precious resource best be harnessed. to allow worldwide industrial expansion?

conditions of sub-Saharan Africa. The document quotes Similar "Great Enterprises" for water development exist freely from Lester Brown's genocidal Worldwatch In­ for North and South America and Asia, as well as Africa. stitute, which, in its policy papers on water, including The Soviets launched such a program of their own, diverting "Water: Rethinking Management in an Age of Scarcity," the massive northern-flowing Ob River southward into the condemns every form of large-scale water diversion tech­ rich agricultural regions east of the Caspian Sea, and the nology as unworkable, from either a financial or ecological People's Republic of China is renovating the ancient north­ standpoint. to-south canal system in that country. These arguments are frauds, thinly veiled malthusian ex­ The main projects of focus in this report are: 1) the Zaire cuses for the genocidal consequences of International Mon­ River diversion in Africa; 2) the Brahmaputra-Ganges River etary Fund looting, which, under the Gramm-Rudman bud­ canal in India; and 3) the North American Water and Power get-balancing law, has extended from the undeveloped sector Alliance (NAWAPA) in North America. These three dem­ to include the United States, as well. onstrate the fundamental principles which apply to many In reality, there is not a famine- or drought-stricken re­ other, similar Great Projects which can transform the eco­ gion of the world today where there do not exist blueprints nomic potentials of whole regions of the globe. for large-scale water diversion projects that could transform In these projects, the issue of engineering feasibility is these regions. In many cases, these plans have existed for straightforward. By maximizing use of such modem con­ decades, and involve technologies not much more sophisti­ struction technologies as PNEs ("peaceful nuclear explo­ cated than what it took to build the Erie Canal in the United sives"), construction time can be vastly sped up. Questions States, over 150 years ago. As one example: Using state-of­ pertaining to financingand political cooperation require more the-art construction methods, diversion of the powerful Zaire attention. Fundamental to approaching these matters, how­ River northward into the Lake Chad basin could be achieved ever, is the perception of the need to realize these potentials. within a decade, and could tum the region the U.N. has Once that is understood, financial and political questions condemned to permanent desertification, into one of the most become matters for deliberative problem solving, rather than fertile regions of irrigated farmland in the world. "insurmountable obstacles" which preclude any serious con-

EIR May 8, 1987 Feature 27 sideration of the topic. We deal with the financing and polit­ lies, helps-when combined with an array of appropriate ical questions first, and the projects themselves last. disincentives-to remove the inflationary element of specu­ lation, which, combined with tough measures against drug­ I. Financing large-scale development money laundering and related capital flights into "offshore Historically, water projects, famous as "internal im­ havens," makes the generation of the right kind of credit for provements" in the history of the development of the United large-scale development possible. Few people, except those States, were financed through predominantly public means. who think they make the rules of the monetary games to It has been demonstrated by the experience of the United ultimately profit the most, will complain about converting States, in particular, that the most efficient way to finance highly volatile high-interest, short-term credit into more se­ and rapidly complete such a project is through dirigist gov­ cure long-term, low-interest, gold-backed credit-especial­ ernment financing. When completed swiftly and efficiently, ly if the move serves to stabilize a global monetary system well-planned projects pay for themselves quickly, and qual­ otherwise on the verge of an uncontrolled collapse. itatively transform the economic weitlth-generating potential These are "ABCs" of what was known in 19th-century of an entire region. A prime example is the Erie Canal. Built America as the "American System" school of economics, with federal funds, it paid for itself in 11 short years, and was which counted among its practitioners Alexander Hamilton, the critical transportationlink between thedeveloped Eastern Mathew and Henry Carey, FriedrichList, and Abraham Lin­ Seaboard port cities of the United States and the interior of coln. It is a science of economics, in stark contrast to the the North American continent-providing a transport link to epistemologically-flawed Britisb "utilitarian" school, out of the Great Lakes, resulting in the virtually limitless expansion which various breeds of monetarist "free trade" advocates of the American heartland, in the creation of great cities and have arisen. And the best proof of the superiority of the industrial/agricultural hubs like Chicago and Detroit. American System school, lies in the interrelationship be­ To the "free market" ideologues and colonial looters of tween the development of the individual, through education the InternationalMonetary Fund today, who use instruments and institutions of political freedom and morality; technolog­ like the Gramm-Rudman law in the United States to rule out ical innovation; improvement of the land and instruments of such investments in development, such an approach is here­ production; population growth �d increase of standard of sy. But history, including the material results of the Erie living per capita-all as evidenced by the experience of the Canal and scores of projects like it, which transformed the United States during most of th¢ 19th century. There is no United States into the greatest economic power in the world limit to this kind of growth, as long as new technologies in less than a century, proved them wrong long ago. We, continue to define new, more efficientuse of resources. The who are not such ideologues or evil men , have simply for­ present -day potential to break through to the "plasma age"- gotten that lesson. making full use of the technologies which will bring us the If credit's genuine purpose is to distribute and reinvest Strategic Defense Initiative and nuclear fusion energy­ wealth, then it can be called into existence upon the guarantee dwarfs anything achieved to date, in terms of our potential of the existence of such wealth, even if that wealth is in the for future growth on this planet, and beyond. future, as long as there is confidence that that wealth will be There are a number of forms in which the generation of realized. Technically, instruments of credit dedicated to the long-term, low-interest credit can be achieved, earmarked completion of specific, wealth-generating projects can be for specificlarge-scale projects. American System economist created de novo, out of thin air as it were, and yet are more Lyndon LaRouche has proposed a number of approaches, solid than if they were backed by gold, if the purpose for both internal and external to the United States, such as his which they are created is realized; and they will have a long­ 1975 International Development Bankproposal, and his 1982 term deflationary effect, since they will allow improvements "Operation Juarez" proposal, which continue to receive close in productivity, through improvements in technology-thus attention from lbero-American governments looking for al­ lowering the unit cost of production. And they will create ternatives to the destructive influences of both the IMF and more wealth and jobs, thus overcoming any initial deficits. Moscow. The conditions arethat the credit must be in the form of long­ LaRouche has written extensively on emergency mea­ term, low-interest notes, so that the pay-back is derived from sures that can be taken domestically to tum the economy the yield of the completed enterprise. around. Another proposal comes from Masaki Nakajima, Such long-term, low-interest instruments of credit must founding chairman of the Japanese-based Mitsubishi Re­ be shielded from secular inflationary tendencies, which are search Institute. He has proposed a 20-year, $500 billion not caused by the increase of the money supply per se, but global development proposal called the "Global Infrastruc­ by the increase of "fictitious capital"; that is, demand on the ture Fund," which would be used to construct a specifictarget money supply from non-productive, non-wealth-generating list of projects including: the Zaire river diversion project; activity (such as speculation and black-market activity like the Brahmaputra-Ganges Canal; a canal across the Kra Pen­ drug trafficking). Therefore, putting the dollar back on the insula in Thailand; a barrieracross the Bering Straits to keep pre-197 1 gold reserve system, in collaboration with our al- the Arctic Sea waters from flowiQg into the northern Pacific;

28 Feature EIR May 8, 1987 A commentaryby the Hon. Sen. Frank Moss

The author is the/ormer U.S. Senator from Utah. Another way is to improve food production with better seed, fertilizers and pest control. But this, too , makes for As a Democrat, and having served eighteen years in the only limited relief in selected places. United States Senate, I have been concernedwith the need Perhaps a third way is to abandon humanitarian and to protect, conserve and utilize our planet's marvelous scientific efforts to terminate medical efforts to fight dis­ supply of pure water. The absolute sine qua non on this ease. Thus, we could invite back the diseases which in globe is water. In a speechon the Senate floor, Sen. Bob past ages swept away our children and whole areas of Kerr of Oklahoma once said that the time would come population. Thus, we might keep our world popUlation to when a barrel of pure water would be of more value than around 3 billion people. Of course, no sane human being a barrel of oil. (Imagine that from an oil tycoon like Kerr.) should subscribeto this "solution." Even then, 20 years ago, Senator Kerr foresaw anexpand­ The only reasonable and humane planning and action ing population and the continuing degradation and loss of in the next decade is to conquer our desert wastelands, our supply of pure water. The world could be on a collision expand our areas of habitation, and expand our food pro­ course to disaster. duction. This, we know how to do. Immense areas of our Is it possible that any substance as universal as water planet, now barren and desolate, will become habitable (H20) could be in such short supply as to threaten famine and productive when we add water. and disease? The sad answer is "yes." A vast supply of Nicholas F. Benton has presented three vast water this renewable resource is stored in ice caps or is flowing salvation and diversion projects. Any of these projects into salty oceans in many places, while enormous areas of would demand our efforts for generations and change the our planet are desert, dry and inhospitable to life, human lifestyle of millions of people yet unborn. or mammal. What is the cost to build these pr�jects: enormous! My home state of Utah has turned much of our land­ What is the cost not to build these and other water scape into beautiful homes and farms by diverting water projects: ghastly, unthinkable! from our mountains to our barren valleys. We started a We can and should explore other planets. But more hundred years ago. But we still need more fresh water. urgently, we must conquer drought, desert, hunger, ov­ My political efforts within my party and in the Senate ercrowding and despair of our fellow human beings on have pressed for water conservation, diversion and use. this planet. The Democrats have a proud record in this effort. But it is Our time is running out. We should begin at once. not enough! We must raise our eyes and expand our scope. Benton sets forward an agenda for the rest of this My advice is: "Make no little plans." decade and several following decades. With world population at approximately 5 billion peo­ When a person sets forth ideas and plans for water ple and with demographic projections of 10 billion people conservation, diversion and use, I give my support. NA­ by the turn of the century and; WAPA was one of the proposals on which I held public Plagued already with water shortages, spreading water hearings in the 1960s. But no concrete action was taken. pollution, desertification of vast areas of our planet-the International vision was too limited. Later, however, the only home on which homo sapiens can rely; and Canadians did build part of this overall NAWAPA plan With world hunger and overcrowding confronting us with the James Bay project, impounding and using waters in several areas; flowingtoward salty Hudson's Bay. We must do something while there is time. International cooperation must come to Benton's gi­ One course of action is to limit procreation. This is gantic proposal if we are to prolong and make better hu­ being done in some areas , but with limited to no success. man life on earth.

EIR May 8, 1987 Feature 29 a second Panama Canal, and so forth . Israeli Prime Minister They have constructed a whole school of phony monetar­ Shimon Peres's recently proposed "Middle East Marshall ist economics around this notion, based on what they call the Plan," calling for a $25 billion regional development fund­ "hedonistic calculus" of the "marginal utility" between "sup­ bearing remarkable similarities to LaRouche's 1975 IDB ply and demand." This has more recently been augmented by proposal for that region-is another example of this ap­ the addition of the "environmental" component of their ima­ proach. As expressed by Israeli Economics and Planning ginary "natural law ," whereby they heavily fund so-called Minister Ga'ad Ya'acobi , the sum is $25 billion over 10 "environmental movements" to interfere with and stop large­ years , involving participation of 18-20 countries for an scale energy and development enterprises. Such obstruction­ "overall, regional economic development program," includ­ ism, together with currency and interest-rate manipulations, ing a nuclear plant in the Sinai to be shared by Israel and aims at making large-scale dev�lopment "too expensive" as Egypt, a coastline railway from Turkey to Eqypt, and joint well as "environmentally unsafe," and this is how they hold agriculture projects. back progress. The final , not insignificant point identified at the outset They further justify such obstructionism with racist ar­ of this report, is that measures required to financelarge-scale guments of "cultural relativism" -again defied by the expe­ development projects, worked in combination with debt re­ rience of the United States, whose growth during the 19th organization and related policies, represent the only way out century was based upon immigration from all parts of the of the impending world financial collapse. Thus, the argu­ globe. Technology is the fruit of the universally shared power ment must be that, not only can this method work, it is the of human Reason, and only someone who would argue that only one which can. Rather than being a net expense, or certain cultures inherently lack that power, can argue that the overhead cost, upon a national economy, such large-scale best technologies to economically transform a region are not infrastructurepro jects massively increase the overall produc­ the most appropriate. Educational deficiency among certain tivity of an economy. An Executive IntelligenceReview team peoples simply presents itself as a component of the overall demonstratedthe positive relationship between the reproduc­ array of problems to be solved, but never as an insurmount­ tive ratio of an economy (SIC + V) and the infrastructure able cultural or "cosmic" obstruction. investment of the previous year in the U. S. economy in an Understanding how the gamemasters of world finance article by Sylvia Brewda (EIR , April 6, 1982). The study capital run this operation, is the firststep among autonomous showed that a crash infrastructure development investment nations to overcoming theirdiff etences on questions of shared could result in a doubling of the size of the overall national large-scale projects. For example, this explains why Africa, economy in 8 to 10 years. after centuries of colonial exploitation, remained so under­ developed. This is why the colonial powers in Africa made II. The politics of large-scale development sure that a transcontinental rail system would be impossible The strongest political opposition to large-scale devel­ on that continent, by constructing the rails in the different opment projects comes from monetarist interests who covet colonies at different gauges (widths), so they could never be the ability to "buy low and sell high," and are therefore interconnected. This is how one; can see the extent to which interested in controlling supplies of natural resources-a the United Nations has become a pawn of this outlook. control which is achieved through financial cartels, cheap Once opposition to development of this kind is removed labor resources, and malleable political conditions to opti­ as a factor to obstruct cooperaticlm, then an environment for mize their power. They are not interestedin producing wealth expedient talks among the relevant autonomous entities, cen­ in the form of net increases of tangible product, but in wealth tered upon their mutual and combined benefitsfrom a partic­ in the form of the margin of difference between their cost of ular proposed project, can occur. Contracts can be let to obtaining something, and what they can sell it for, or get back determine a choice of approaches to a desired project, and in retum. decisions can be made. This means they profoundly oppose the universal appli­ The fundamental methodological principle is that a spe­ cation of scientificand technological progress for the purpose cific development proposal serves as the basis for coopera­ of making cheap and plentiful basic commodities readily tion, rather than some generalized notion of concord or sta­ .available to autonomous populations. bility achieved prior to considering a development strategy. It was opposition by George III to just such progress that Israeli Prime Minister Peres's Marshall Plan strategy for the provoked the American Revolution. Because of that experi­ Middle East is an example of this: It reflects the basic under­ ence, whereas such interests had historically normally re­ standing that mutually beneficial regional economic devel­ sorted to simple force to impose their will (and usually still opment is the best incentive for political concord. do) , theyalso take care to assert thatthe law of plunder (which For example, the architects ofthe NAWAPA water proj­ they call the "free market") is a "natural law" which, if ect for North America understood this well when they went violated by sovereign nations seeking to protect themselves to the American, Canadian, and Mexican people with this fromplunder, will result in disastrous consequences. program, back in the 1960s. Tapping the enormous fresh

30 Feature EIR May 8, 1987 water resources of Canada and Alaska for mUltipurpose uses throughout the continent, provides an abundance of surplus MAP 1 resources to be shared by all three nations, and many of the Africa development projects provinces and states within the nations. This was made clear in the NAWAPA proposal: Eleven Canadian provinces, 35 U.S. states, and 5 Mexican states would enjoy an immediate positive impact from the project, thus laying the basis for an overwhelming consensus for its adoption . The only reason NAWAPA was not adopted and com­ pleted by now, to bring 180 million acre feet of water an­ nually to productive use on this continent, was obstruction by the international financial forces identified above. This occurreddespite the fact that the friendship treaties for natural resources sharing between the United States and Canada do exist already, although technically reserved for times of na­ tional security crisis to either nation. However, since times are rapidly approaching when the North American water shortage crisis can properly be defined as a national security crisis, this treaty, dating back to World War II, can be an expedient way to realize this particular project for the general good. Such friendship treaties, afterall , are not hard to arrive at and implement, when everyone, except maybe a few in­ ternational financiers, stands to gain.

llI. Three model water projects From the following three specific development propos­ als , we can readily see the immediate potential to overcome the most fu ndamental problems associated with famine in the world today, within less than two decades. These projects can, virtually by themselves, increase food production so massively as to eradicate food shortage as a problem facing Basin, of about 130 square miles. According to geologists, humanity. They are only three of a vast array of projects this basin was once a huge inland sea, hundreds of thousands designed for almost every section of the globe, awaiting only of square miles in size, larger than the Black Sea, and, al­ the political will to realize them. though it has shrunk over the centuries to about 130 square miles, it would be refilledwith the fast-flowingwaters of the 1) Zaire River diversion (Africa) Zaire River to approximately its original size, extending from The continent of Africa contains a total of seven major Bangui in the north , to Kisangani in the east, to near Lubam­ river systems and more unused arable land than any other bashi in the south, and near Kinshasa in the west, with a total continent on the face of the Earth. By putting the water of surface area of almost 400,000 square miles. This would those rivers onto that arable land, this continent would be­ cover a huge swamp and tropical rain forest area virtually come among the richest agricultural producers on Earth. Out­ untouched to this day. This huge lake would be connected lined in the Mitsubishi "Global Infrastructure Plan," or GIF, with spoke-like rivers and canal systems, becoming the axis the Zaire River diversion project proposes a "control of the of interior African transport, and the region's already enor­ flowof the Zaire River by building a dam to create a vast lake mous hydroelectric power potential would be doubled. in the Congo, Central African Republic, and Chad regions of This gigantic Zaire reservoir would then be connected to central Africa to improve natural conditions." The massive Lake Cha� by a canal north through the Central African Zaire River is among the world's most powerful-containing Republic. The canal would run northward up the Ubangi 19% of all the world's hydroelectric potential in its flow. River, a tributary of the Zaire, to its northernmostpoint near According to the estimates of this report, redirecting its flow the city of Nagi, and then be cut through a mountain chain of into the Lake Chad basin would permit the cultivation of the northern equatorial ledge which regulates a watershed 800,000 square miles of arable land in the Sudano-Sahel running into the Lake Chad basin. region below the Sahara Desert. The Lake Chad basin is a huge natural depression en­ A dam would be built on the Zaire River north of Kin­ closed by mountains on all sides 1,400 feet above sea level. shasa, creating a gigantic lake, in what is now the Zaire At its present level, Lake Chad, almost totally dried up through

EIR May 8, 1987 Feature 31 evaporation, is at only 800 feet of elevation, and is one of the Europe west of the Iron Curtain, excluding Scandinavia. Yet, shallowest fresh-water lakes in the world. Augmented by the whereas that area of Europe has 330 million people, there are fast-rushing waters from the Zaire (amounting to four times only 18 million people in the Sahel (thus the absurdity of the amount of water the Rhine River dumps into the Atlantic), assertin:; that the problems of the Sahel stem from overpop­ it could be brought to its 1,400-foot elevation brim, which ulation !). would enlarge the lake to an enormous 4,OOO-mile coastline, A premium on education-in the way that President Lin­ many times its present size. coln combined the Land-Grant iColleges Act with his other From this high elevation, this lake could be tapped for legislation to open up the Western frontier in the United irrigation purposes in both eastward and westward directions, States-would be a priority component of such an economic where almost I million square miles of arable land stretch development boom throughout this region. across the continent, from Dakar on the west coast to Dj ibouti on the east, below the Sahara Desert. 2) Brahmaputra-Ganges Canal (India) One strategy would be to extend a canal northward to the By virtue of the majestic H�malayas, the highest moun­ Mediterranean, carried over a natural riverbed approximately . tain range in the world, the Indian subcontinent is blessed parallel to the Nile, through Niger and Algeria, and entering with some of the greatest water resources in the world. How­ the Gulf of Sidra through Tunisia. Tributary canals off this ever, the water originates in the high altitutes of the far north, extension could begin to reclaim areas of the Saharadir ectly. and the arable land is far away. Second, the monsoon rain Combined with a canal project to reclaim swamp land pattern turns the region's rivers into deadly, flooding tor­ already under way in the southern Sudan region (a canal one­ rents, more a menace than a Qenefit to man during these third completed, but now stalled for lack of funds, on orders seasons. Therefore, flood control and irrigation are both re­ from the IMF), and with plans for expanding the irrigation quired to fully tap the water potential of this area for man's potentials of the Niger River to the west, this project will use. The combination ofthe two can provide for a qualitative make possible the irrigation and cultivation of this enormous increase of foodproduction on tqe massive arable portionsof region-which, by itself, is the width of the entire continen­ the region, allowing for a rotation system of three irrigated tal United States, amounting to 800,000 square miles of plantings annually, rather than one which is at present dictat­ arable land. ed by the whims of weather and the monsoons. The appearance of a significant increase of vegetation in Also known by the name of the "Himalayan Project," the this area as a result of this project will immediately cause a Ganges-Brahmaputra Canal prqposal , as conceived by the dramatic shift in weather patterns, due to the exchanges be­ GIF, involves "damming the Saqpo River on the upper reach­ tween plant life respiration and photosynthesis, and the sur­ es of theBr ahmaputra in the frontier area between China and rounding atmosphere. This will draw natural precipitation to the Indian province of Assam, to make it flow into India the area, which will encourage even more plant life, and more through a tunnel across the Himalayas," and projects an an­ rainfall. The net result of this will be a naturally induced nual hydroelectric-generating capacity of 240 to 300 billion reclamation of the Sahara Desert itself. The "desertification" kilowatt-hours. While the GIF proposal is excellent from the process, in other words, will be reversed. Rather than grow­ standpoint of flood control-taming the Brahmaputra from ing every year, the Sahara Desert will rapidly recede. Aug­ its uncontrollable, deadly flooding during the monsoon sea­ mented by advanced soil technologies, such as are being sons-and hydroelectric power, this concept was expanded perfected in California's Imperial Valley, even the most men­ in a 1979 report on the develop�ent of India by the Fusion acing regions of the Sahara would become susceptible to Energy Foundation (FEF) , to include vast irrigation works development. for agriculture. Combined with fertilizer production, this This program gives the lie to the United Nations' Sudano­ irrigation could lead to a tripling of India's grain output Sahel "Strategy for Survival" report, which proclaims the within two decades, making the country not only self-suffi­ growing "desertification"of the region as irreversible. Com­ cient in food , but a major net exporter of food to the world. bined with a transcontinental railroad-east-to-west, and then The FEF's work, in tum, drew on the concepts of Dr. north-to-south-and nuclear-powered industrial "nuplex" K.L. Rao, once irrigation and power minister in India, who complexes along the coast lines, this Zaire River diversion in 1972 drafted a comprehensive Ganges revitalization and project can unlock a virtually limitless potential for the de­ Brahmaputra control plan. His plan looked forward to the velopment of the rich reSOl1rces of the African continent. production of an additional 1 billion tons of food grains Contrary to the U. N. argument of the need for population annually, or, eight times the present level, with 130 million control, under the conditions of rapid economic development hectares of land under irrigation, three times the present that would follow from this project, Africa would experience level. He foresaw at least 40 gigawatts of new hydroelectric a manpower shortage-the effects of underpopulation from capacity, compared to 5 gigawatts at present. the ravages of decades of drought and famine. In the nations The FEF conceived of realizing this plan in two 15-year of the Sahel, for example, the land mass equals that of all stages, beginning with a canal diverting the Brahmaputra

32 Feature EIR May 8, 1987 Nonetheless, IMF austerity conditionalities prevented the

MAP 2 Bangladesh government from purchasing, at the beginning Water development in the Indian of the decade, the dredges needed for floodcontr ol; that IMF subcontinent dictate led directly to the loss of tens of thousands of lives in the floodsof 1984. The seawater barrier, similar to the Zuider Zee reclamation project of the Netherlands, would maximize the fresh-water potential of the Ganges delta area, especially during the low-flow season, when salt water incursion be­ comes greater. Stage Two of the PEF plan involves extending the canal system southward through the subcontinent-the so-called Ganges-Cauvery link canal. This canal would stretch along easternIndia fromPatna to the Cauvery River in the far south, with an ultimate capacity of 240 BCMY (billion cubic meters per year) , 10 times greater than the original plan estimated by Mr. Rao-since it will be drawing from the year-round storage capacities of the Ganges and Brahmaputra achieved in Phase One, rather than only the monsoon surplus, and could be augmented with nuclear power forpumping. The canal would optimally be 60 feet deep and 1,500 feet in average width at the upper end, and taper down to a 350-foot width, with the same depth, at the lower end. Its total length would be 1,640 miles, all but 440 miles of which would be in gravity-flowcanals or rivers. About 120 BCMY of storage is necessary for delivery regulation. In addition to irrigation, the canal would be a vital inlanci barge-transport system for ores, grains, and bulk products from south to north , turning Patna into a bustling seaport. Estimates for the cost of the system are $80 billion for Phase One and $100billion for Phase Two, including the near Dhubri to the Ganges near Patna. This canal would pumping power plants. Since the facilities would be con­ include outlets for irrigation releases to Bangladesh en route. structed over a 30-year period, the average capital require­ A second diversion canal would be built from the upper ment would be $7 billion annually for the first 10 years, and Ganges and Yamuna rivers in Haryana (northof Delhi), with about $5 billion a year for the last 20 years. The installed groundwater recharge and extraction facilities en route, to power requirement is about 13 gigawatts after the first 10 convey surplus water into the Sutlej Basin for delivery into years, mostly for groundwater pumping, increasing to 85 the Western Desert, through an enlarged Rajasthan Canal. gigawatts over the next 20 years as the pump-lifts for the Near Bikaner in western Rajasthan, a pump-lift canal north-south:Ganges-Cauvery canal become operative. facility would convey Himalayan water to the porous sand­ However, that canal will generate about 25 gigawatts of stone aquifers about 105 kilometers northeastof Jodhpur, as that power by itself, through hydroelectric turbine installa­ a regulating storage facility. That water now runs off, either tions on it and on neighboring river systems. Estimates of through the Ganges tributaries or those of the Indus River. basic materials include 40 million tons of predominantly These canal systems would be augmented by groundwater construction-grade carbon steel and 190 million tons of con­ recharge and extraction systems, using PNEs, required to crete-requiring 23 million tons of Portlandcement . impound the massive monsoon runoffduring the July-Octo­ ber season, especially in the Ganges delta area, whence about 3) North American Water and Power 65% of all India's water runoff comes. Use of PNEs as well Alliance (NAWAPA) (North America) as radial wells can double the country's groundwater storage The conception of this project dates back to the last cen­ capacity. Finally, a seawater barrier at the mouth of the tury , just as the vision of a Panama Canal was already present Ganges for floodcontrol and improved navigability is a prior­ in the mind of Benjamin Franklin. It involves capturing the ity. fresh waters of the northward-flowingCanadian and Alaskan A master plan for this was prepared by the International rivers, and diverting them southward for productive use in Engineering Company of San Francisco 22 years ago, and is Canada, the lower 48 states of the United States, and northern slowly being implemented by the governmentof Bangladesh. Mexico. This is no small amount of water we are talking

EIR May 8, 1987 Feature 33 about: fully 26% of all the rainfall on Earth which hits land alleviate the critical water shortage conditions threatening and flows off into the ocean, lands in Canada and flows population-dense southern California, as well as the rich northwardinto the Arctic Ocean, not utilized by man for any agricultural lands of the United States' High Plains; and 3) it purpose. would allow for new economic growth in the West beyond Tapping this resource would achieve three immediate the imagination. benefits: 1) It would immediately employ the idled industrial This project was given the name NAWAPA by the Ralph and manpower resources of the nations involved productive­ M. Parsons Company of Pasadena, California,which invest­ ly, a vital component for an economic recovery; 2) it would ed millions in private funds to draft a master plan proposal

MAP 3 The North American Water and Power Alliance

34 Feature EIR May 8, 1987 for maximum exploitation of this untapped water resource in and canal projects, tapping a collection area stretching from the early 1960s. This became a hot issue through the mid- the Yukon River to northernMontana. Of a total water runoff 1960s, the subject of a report by the Senate Subcommittee of 800to 1,000 MAFY in this 1.3 million square mile area, on Western Water Development chaired by former Sen. Frank NAWAPA would divert a total of 160 MAFY for consump­ Moss (D-Utah), which was published in 1966, and was the tion and waterway control. It would begin in Alaska, high in subject of numerous debates and a book by Rep. Jim Wright the headwaters of the Yukon, Susitna, and Tanana rivers, (D-Tex.), called "The Coming Water Famine," which pro­ where, through a series of reservoirs, waters would be col­ moted the project. lected and diverted into the Fraser River-where the water However, the NAWAPA project became the victim of the would meet water coming from the Peace River and Parsnip "environmentalist" movement of the late 1960s, beginning River, and flow into a natural geological formation roughly with the move by the late Sen. Henry Jackson (D-Wash.) to along the British Columbia-Alberta border, and extending pull Moss off his post as chairman of the Western Water 500 miles, along what is known as the Rocky Mountain Subcommittee. It was only in the late 1970s, when Congress Trench. realized that the Ogallala aquifer, the groundwater resource With dams at the southern outlet to this trench, it will upon which 11 million acres of irrigated cropland on the High become a giant lake storing 300 to 400MAFY of water (over Plains depends for water, was drying up, that interest in the three times the entire annual fresh water consumption of the NAWAPA concept began to be renewed. However, "envi­ lower 48 states). Nearby, a supplemental system would draw ronmentalist" fixations of the Carter administration, a little­ from the Clarke , Snake, Clearwater, Bitterroot, Big Hole, known provision in Congress' omnibus water legislation pro­ Jefferson, Salmon, Little Colorado, and Escalante river bas­ hibiting even the study of inter-basin water transfers affecting ins. A navigable waterway would extend from the Fraser the Columbia River, and fiscal constraints, prevented NA­ River eastward acrossthe Canadian plains to the Great Lakes. WAPA from being little more than a "pipe dream," until Southward flowsfrom the Rocky Mountain Trench and Lyndon LaRouche and the National Democratic Policy Com­ Clearwater subsystem would supply the lower 48 states and mittee (NDPC) began to make it a cornerstone of a national Mexico-a total of 80 MAFY to the United States (Califor­ economic reconstruction program in the late 1970s. nia, Arizona, and Texas getting 12 MAFY each, New Mex­ By providing over 160 MAFY (million acre feet of water ico 8, Nebraska 6, the Dakotas 5.5 each, Missouri 5, etc., a year: one MAFY equals 0.89 billion gallons per day) for under the original plan), and 20 MAFY to Mexico (Sonora deployment throughout the continent, NAWAPA can address 9.5, Baja California4.3, Chihuahua 3.6). every major water crisis facing the United States, Canada, According to a presentation by a Parsons Company and Mexico-from the Great Lakes and the St. Lawrence spokesman to a public meeting of the Fusion Energy Foun­ Seaway to the Mississippi, to South California, Arizona, dation in 1980, the estimated cost of NAWAPA would be Texas, and the High Plains, to Mexico's Sonora and La $200billi on over a constructionperiod of 30 years. However, Laguna regions, to Eastern Seaboard municipal reserves. this was excluding the use ofPNEs, which formed part ofthe Since virtually the entire system runs downhill in a free, original NAWAPA concept, but was removed for fear of anti­ gravitational flow, it can generate an enormous net yield of nuclear protest in the early 1970s. With PNEs, the cost and hydroelectric power above and beyond its own pumping re­ construction time both would be reduced tremendously. quirements-thus, the term "power" in the NAWAPA name. However, with the massive net surplus of energy on top of The total surplus hydroelectric yield has been estimated at 70 the enormous water yield, NAW APA must be seen as perhaps gigawatts. the best investment in the future-apartfrom NASA or Stra­ As an example of the magnitude of increase in water tegic Defense Initiative programs-the United States and its availability NAW APA would provide, the entire state of Cal­ neighbors could make. Pay-back time for the original con­ ifornia,the most populous and agriculturally dense (in terms struction costs could be achieved more quickly than the dec­ of cash yield per acre under production) in the Union, today ade it tookto pay off the costs of building the Erie Canal, and consumes approximately 37.4 MAFY during a normal year profit yields would be far greater. (of this, 5 MAFY is for urban use; 31.7 for agriculture; the Objections which surfaced among certain Omadian in­ remainder for power plant cooling and fish, wildlife, and terests in the 1960scan be overcome by invoking the emer­ recreation). gency friendship treatiesthat exist between the United States NAWAPA would augment this total for Californiaby 12 and Canada for use in the case of national emergencies. These MAFY, or 33%. NAWAPA would also provide 12 MAFY to treaties focus on sharing natural resources-and in this case, Arizona, which would more than quadruple its total present the resource is a renewable one whose use does not threaten usage. Mexico would receive 20 MAFY, and the Canadian to exhaust the supply, but only to create a permanent, stable, provinces, themselves, 58 MAFY (including a navigable and growing marketfor the inexhaustible commodity. Work barge canal linking the Great Lakes to the Pacific Ocean). on such a project could beginby invoking the War Production The project in its totality is composed of over 350 dam Act of 1949, or by a more standardlegisla tive route.

EIR May 8, 1987 Feature 35 Chirac-Thatcher entente fights the 'zero-option'

by Mark Burdman

Following three hours of discussions with British Prime Min­ the deal, has surprised the Soviets, who were already report­ ister Margaret Thatcher in London April 26, French Prime edly caught off-guard, by the ext�nt of opposition to the zero Minister Jacques Chirac declared that a "grand convergence" option expressed by Mrs . Thatcher, during her March 28- existed between Paris and London on how to respond to U . S.­ April 1 visit to the Soviet Union. The Soviets had also been Soviet negotiations toward reaching a "zero-option" disar­ shocked by the dismantling by the French government of a mament deal in Europe. The bottom line, Chirac insisted, Soviet spy ring, and the expUlsion of a top-level Soviet es­ was that both countries agreed that the "denuclearization" of pionage coordinator in early April . The Soviets had original­ Europe , particularly the removal of American missiles from ly thought to have secured their flanks in Europe among Europe, which is part of the proposed deal, would be "unac­ conservative governments. Now they are biting the rugs with ceptable." rage, reflected in a wild April 27 Tass News Agency attack Reporting from London April 28, the French daily Le on the French government. Montle asserted that "British observers share the appreciation Third , the Franco-British entente could strengthen the of M. Chirac: French and British initiatives are now very position of zero-option opponents in West Germany, where close." The paper noted that this was tantamount to a "Fran­ the political-strategic situation is extremely delicate. Under co-British entente." conditions of both superpowers frantically pushing the mis­ These statements might surprise those familiar with the siles deal , it is almost impossible for a government in Bonn long history of controversy pitting Britain against France on to openly oppose the zero-option, even if leading influentials a wide variety of issues. The disastrous "zero option" has are fully aware that sucq a deal would leave West Germany accomplished what nothing else could accomplish; animosi­ totally strategically exposed. ties between the two countries have now virtually melted, Chirac announced he will be going to Bonn May 3. In the and shared fear that a superpower INF (intermediate-range days leading up to that visit, certain political signs in Bonn nuclear forces) deal would leave Europe defenseless in the are noteworthy, even if much of what people think cannot be face of the overwhelming Soviet strategic threat, has opened said in public. One such sign was the West German cabinet up highly interesting possibilities of strategic cooperation. refusal, April 27, to formally back the enthusiastic endorse­ This entente has three immediate effects. ment of the zero-option proposed by West German Foreign First, it provides a counterweight in Europe, to the mas­ Minister Hans-Dietrich Genscher. Following this, Chancel­ sive pressure being exerted onEurope by PresidentReagan 's lor Kohl told the Sat 1 television network April 29, that the White House and George Shultz's State Department, for the zero-option could only be reached, if "our safety is increased, Allies to accept the Euromissiles deal. and not decreased, after an agreementis signed. " He declared Second, the vehemence of French-British opposition to "deep disappointment that the Soviets have not signaled any

36 International EIR May 8, 1987 commitment to reduce their conventional weapons superior­ Denuclearization of Europe 'unacceptable' ity ," and said he would "not decide on the zero-option before Speakingin London aftermeeting Mrs. Thatcher, Chirac consultation with all our allies." declared: "As long as [Soviet] superiority in the domain of One possible sign that Moscow may be feeling some rage chemical and conventional weapons will remain as it is, there about developments in Bonn, is the unexplained and sudden will be no other choice except to maintain nuclear deterrence announcement by the Soviets that the anticipated visit to the in Europe, and that includes an American deterrence." Chirac U.S.S.R. of ultra-detentenik West German President Rich­ declared that a "denuclearization" in Europe, particularly ard von Weisziicker, had been "indefinitelypostpon ed. " Oth­ involving the removal of American nuclear missiles from er factors may come into play in this decision, but the least Europe, would be "unacceptable." Security in Europe , he that can be said about it, is that is not a routine, or typical, insisted, depends on an eqUilibrium that "demands the main­ diplomatic development. tenance of a sufficientcapacity for nuclear deterrence." Alfred Dregger, the head of the parliamentary group of About six weeks before Chirac's trip to London, British the Christian Democratic Union in the Bundestag and a senior Defense Minister George Younger had flown to Paris for CDU foreign policy spokesman, expressed his categorical meetings with his French counterpart Andre Giraud. Under rejection of the zero option, in an April 27 declaration. Dreg­ discussion were various new forms of French-British nucle­ ger warned that the negotiations for a zero-option deal are ar-strategic cooperation, including joint production of long­ leading toward "a nuclear singling-out of Germany. . . . The range nuclear weapons technologies, coordination of nuclear safety of Germany would be endangered to the utmost by technologies more broadly, and exchange of information on missiles below the range of 500kilometers . . . . As German strategic affairs. politicians, we cannot give our support to this kind of policy. " Dregger cited NATO chief General Bernard Rogers and for­ mer U . S. Secretary of State Henry Kissinger's warningsthat the zero options would remove the foundation of the flexible response of NATO. Rogers himself, in statements appearing in the Frankfurter Allgemeine Zeitung daily April 30, stressed that certain decisions taken in Bonn on the zero solutions, General Rogers: 'Europe's could have a "determining effect" on the future of NATO. future as a whole is at stake' Especially as "the future of Europe as a whole is at stake," Rogers exclaimed, why should the schedule of negotiations decided on in Washington "set the tone" for Bonn? Speaking to the West G�rman· daily Franlifurter All­ CDU-CSU arms-control spokesman Jtirgen TOdenhofer gemeine Zeitung from his headquarters in Casteau on has sent confidential letters to his colleagues on the foreign April 29, General Rogers stressed that the decisions affairs and defense committees of the Bundestag, calling on takenby the West German governmentin Bonn, on the them to deny support to any "isolated zero-option," insisting zero-option, will have "a determining effect on the thereby that arms control talks must link all categories of future strategy of NATO." He criticized the haste in weaponry, including chemical weapons and conventional the current discussion in Bonn: "But why should this forces. It is said that TOdenhofer is organizing a parliamen­ all be decided in three weeks? Why not give it a half­ tary boycott against the zero-option agreement. year? Why should the predetermined [Washington] One sure barometer that there is resistance in conserva­ schedule set the tone, when Europe's future as a whole tive West German circles to the zero-option, is the political is at stake?" disposition of West Germany's left-wing social-democratic Rogers warned of the Soviets' seducing offers on appeasers ; Suddenly, the extraordinary situation has been arms-control, and urged the U.S. population, to keep created, where the biggest defenders of Ronald Reagan's one thing especially in mind: "The American people missiles deal are Social Democratic Party leaders Hans­ must recognize that our eastern borders lie at the Ger­ Joachim Vogel and Egon Bahr, who usually express a man­ man-German and at the German-Czech borders, and ichean's rage against anything Reagan does. These, and oth­ that we have to be closely allied with WesternEurope . ers of the same species, have been attacking the West German . Otherwise, this alliance will fall apart, and we make government's hesitancy on the zero-option, and have even ourselves guilty of having helped the Soviets to achieve gone so far as to cali on President Reagan to apply pressure their strategic goals." The article appeared under the on Chancellor Kohl, to get him to go along with the new headline, '' 'America's eastern border runs through "armscontrol" dea ls! This is something they would never do , Germany'/General Rogers complains about the zero if the situation inside the Bonn coalition were completely solutions. " sewn up by the zero-option mafias.

EIR May 8, 1987 lnternational 37 After Chirac had left London , London's International Institute for Strategic Studies (IISS) warned of the dangers British Press Asks : posed by the zero-option to Europe; such warnings are an unusual turnabout for the IISS, which usually supports anns­ control deals. In its "Strategic Survey 1985-1986," the IISS charged that "the superpowers pursued a chimera at Reykja­ vik: dreams and visions of a world without nuclear weapons, and also, for President Reagan, a world of perfect defenses. A sense of unreality pervaded the negotiations."

Tass is not amused The day after Chirac' s departure, the Soviet news agency Tass, under the title, "Atlantic solidarity, obstacle to disar­ mament," and under the byline, Vladimir Bogachev, issued a violent denunciation of Chirac and Giraud. The nastiness and cynicism of the tone of the article contrasts with the oozing sweetness the Russians are reserving for U. S. Secre­ Are homosexuals a tary of State George Shultz. "Certain members of the French government," in partic­ by Lyndon H. LaRouche, Jr. ular · Prime Minister Chirac and Defense Minister Giraud, Tass-Bogachev charged, have "taken the leadership of the offensive of conservative circles of NATO against disanna­ This commentary was written an April 26, 1987: ment in Europe." The French position in respect to recent Soviet proposals is "much harder than that of other NATO The British weekend press may be fairly described as some­ capitals, ...according to Westernobservers themselves." what dominated by echoes 0f Prime Minister Margaret The attack went on: "The Soviet government had de­ Thatcher's disclosure earlierthis past week, that former MI- clared itself ready, to not take into account the British and 6 spymaster Sir Maurice Oldfield had been an active homo­ French 'fo rces de frappe' in the global equilibrium of forces sexual, apparently since his days at Lady Manner's public in a potential accord on Euromissiles. This constituted an school. One issue prominently debated, is whether the fact important concession, to the extent that French military plan­ that a person is a lesbian, catamite, or sodomite makes her or ners calculate publicly the strength of their nuclear forces by him intrinsically too great a seourity risk to be entrusted with the number of Soviet cities that they can destroy. state secrets? "But the Parisian high functionaries, who have the short According to accounts, Oldfield, who died in 1981, had view, fear that it would be more difficult to France to justify been on the MI-6 roster, initially occupied with battering the existence of its nuclear forceswhen the Soviets will have Jews in Palestine, since 1946,:and its spymaster from 1973 withdrawn its theatre missiles fromEurope ." until he was exposed and disqharged for having concealed Tass-Bogachev attacked Chirac for "having declared his homosexual life, in 1980. He is described by The Observ­ Sunday [in Britain] that the withdrawal fromEurope of short­ er as spy-novelist John LeCllI'l'e'S model for the odious, fic­ range missiles would be dangerous," and Giraud, for having tional characterof "Smiley. " spoken of a "nuclearMunich ," in respect to Soviet disanna­ The controversyappears to reenter around what should be ment offers . viewed as merely a significant,[but essentially tertiary aspect The piece further attacked France for reinforcing its pro­ of the problem, that homosexuals are so much more readily gram of nuclear annament: "Paris is extending its zone of subject to potential blackmail by Soviet or other nasty agen­ responsibilityin Europe, and is replacing its Pluton missiles, cies, thatto employ homosexuals for sensitive posts is far too of a range of 120 kilometers, with Hades missiles, capable great a riskto be tolerated. The contraryview , expressed by of reaching targets in Czechoslovakia and the German Dem­ one of the weekend's columnlsts, is that homosexuals are ocratic Republic. The number of nuclearwarheads with which blackmailable because of society's intolerant attitude toward the French missiles based on land and on sea are equipped, them, and might not be intrinsically such risks otherwise. will reach 600units in 1992. As an American journalistsaid , Admittedly, that is the conventional view of the issue, as if the French fo rce de frappe is a joke, it is less and less we might remember from those ironic days the homosexual funny." ring of Sen. Joe McCarthy's Roy M. Cohn was exposing Not coincidentally, the attacks were issued while a French State Department homosexual$ as "security risks." Homo­ Foreign Ministry official was in Moscow, preparing the sexuals are persons, and thus entitled to the civil liberties of scheduled visit of Chirac to the U.S.S.R. persons generally. Consequently, they have the rightto seek

38 International EIR May 8, 1987 concede, and thus put to one side, the issue of "potential blackmail"; let us concentrate on the more profound, psychi­ atric issue. The conventional view of homosexuality (including les­ bians, of course) , is that it is "not normal ." Unfortunately , "normal" usually carries the connotations of "statistically less likely," or "unconventional." Since, statistically, almost no person is precisely normal in those senses, such definitions are much less than useful. One says better, "pathological," in the sense earlier conveyed by the psychiatric profession's view of this matter. The question is: Is the homosexual psychopathology, in some or all varieties of cases, associated with an endemic impairment of the capacity for patriotism? So, before focus­ ing upon the impairment, we must define what it might be security risk? which might be so impaired. Bertrand Russell, a paragon of treason Patriotism, and associated notions of loyalty, trustwor­ thiness, and so forth , are really a way of speaking of the person's innermost sense of social identity. It is that which is to qualify for employment in any field, on their individual associated with the person's innermost sense of social iden­ merits, on condition it is not demonstrated that their homo­ tity , which is that for which he will make virtually any sac­ sexuality itself is a disabling disqualification. Although the rifice, rather than become an un-person to himself. observationthat homosexuals are blackmail able is valid, that While I have no record of what the late BertrandRussell misses the essential pointof the matter. did in his odd hours without the company of Ottoline, it is The fundamental question for policy-makers , is a ques­ the treasonous state of mind of Russell which appears to be tion of fact: Is there something in the state of mind of being a most typical of the high-ranking sort of post-Versailles Brit­ homosexual, some impairment of the personal sense of social ish traitor in particular. The question is, whether something identity, which might also impair their loyalties in dealing analogous to Russell's avowed proclivity for treason can be with state secrets? This area of the problem was seriously properly identified as a syndrome of either all homosexuals, considered by some in the psychiatric profession, until the or only of a more specific strain of homosexual pathology. beginning of the 1970s , when politically motivated decisions In the instances of both Russell and Blunt, and others , within the medical profession caused nations to cease clas­ the point to be emphasized, is that the collapse of the British sifying homosexuality as a painful and variously troublesome Empire , and the prospect of extended world-domination by mental affliction, a disease in the proper sense of the term . the Americans, deprived them of the former sense of British If we are to bring some sense back into the discussion of identity which the grandson of Sir John Russell found ac­ this sensitive problem, the phenomenon of homosexuality ceptable, and that treason, in one guise or another, were must be divided into two admittedly interrelated , but very preferable to tolerating British subservience to the whims and distinct clinical problems. interests of the American Morloch. The first is that aspect of intimacies with either animals If Earl Russell was not technically a traitor to Britain, this or one's own sex, intimacies described, for what are, biolog­ was only becausehis energies were fullyoccupied with crimes ically curiously inappropriate reasons, as "sexual acts ." Such against both the Creator and civilization. Men of lesser evil intimacies fall within the provinces of statutes and morality . are more suited to smaller deeds of mere treason against a This is the aspect stressed by the current British press discus­ particular nation. sion, potential blackmail arising from the perpetration of It must also be taken into account, that draping the corps­ such acts-presumably with one of the numerous, similarly es of Britain's youth upon the barbed wire of the Great War, disposedagents of the Soviet KGB . fostered a state of mind in Britain not dissimilar to the de­ The public attention to these statutory and moral aspects moralization of those German veterans, the "rootlessones ," of the matter distracts attention from the second, more pro­ on which Nazism capitalized. In the latter state of demorali­ found questions: What is distinctive about the state of mind zation, during the 1920s and into the 1930s, the satanic influ­ of the person impelled to perpetratesuch practices, and what ence of such as Russell, H.G. Wells, and Aleister Crowley might be the consequences, of relevance to security policies, met fewer barriers to its progress. of a person's being subject to such state of mind? Let us Ho�ever, we can not separate this phenomenon of the

EIR May 8, 1987 International 39 post-Versailles period from what leading Fabians themselves form of love associated with "agape," not "eros." stressed as the role of the Darwin-Huxley scandals upon the The loss ofa sense that one's nation has a higher purpose religious faith of the self-styled intellectuals of the British for contributing to the advancement of civilization as a whole, middle classes and others . Nor, respecting the issues leading or the sense that one's nation is no longer committed to into the U.S. War of Independence, should an American adopting and nurturing the good contributed by its citizens, historian overlook a similar pathology traceable to the Hell either impels one to correctsuch flaws in one's nation, or else Fire Clubs of Walpole Liberalism, or the degeneracy rampant patriotism is cut away at its root. Similarly, the fault may among influential circles within the court of James I. originate within the individual, one who is so obsessed by Patriotism, as distinct from racialism, can not be separat­ personal eroticism for its own sake, that nation is reduced for ed from that idea of the modem sovereign nation-state, which him to at best a possible convenience, or, at worst, an en­ spread from Renaissance Italy into Louis Xl's France and cumbrance he tolerates at long as he fears to do otherwise. Tudor England, as the alternative to the follies of late- 13th­ Much is made of the supposed "idealism" of a Philby or century and 14th-century feudalism. The tendency to substi­ other notable cases of traitorous defectors to the Russian tute parodies of the two Roman empires for the institution of empire. This presumes that Philby was some poor fool with the modem nation-state , and a curious self-hate, which per­ an unresolvedweaning-cr isis, like some simpering idiot fol­ ceives that the institution of the family committed the folly lowing the red banners in some peace march, with no knowl­ of bringing oneself into existence, arealso contributing influ­ edge of what Russia is on the inside, or of what Russia does ences for the erosion of patriotismtoday . in those nations which were either subjected to Moscow's True patriotism does not negate personal self-interest, overlordship, or misled into coming under Soviet control . but is associated rather with the individual's sensibility of his Philby knew full well what he was doing. Moscow was evil, own mortality, and thus recognitionthat the outcome of his to his knowledge, and he consciously chose evil, conscious individual life's work lies in that which a hopefully more that the choice was an evil one. Philby, like Blunt, whom durable existence, that of his nation, makes permanent. It is only silly people could consider"idealists ," brings us to the thus tied to love of self, nation, and humanity, all at once, a essence of the matter.

Homosexuality as the intent to do evil The clinical essence of the homosexual pathology, is �M InDLE EAST­ destructiverage , a Nietzschean, dionysiac quality of rage . In the pre- 1970s psychiatric literature, this was frankly and extensively documented. The pleasure of the homosexual INSIDER deed is the pleasure of doing evil, in that clinical sense. It is Weekly Confidential Newsletter not the desire for the act in itself, but the pleasure of the destructive character of the act as an affirmation of the dia­ bolical, which is controlling. This is a form of the mens rea; Executive Intelligence Review has been the authority on Mid­ it is an evilly grimacing Eros with horns and hooves, an dle East affairs for a decade. In 1 978, EIR presented a coherent Osiris, a Siva, a Dionysos. profile of the "Islamic fundamentalist" phenomenon. EIR had the inside story of the Irangate scandal before anyone else: We should recall from the' relevant authorities of a more C In 1980, EIR exposed the late yrus Hashemi as the Iranian honest past, that the etiology'of the homosexual syndrome intelligence man in Washington, organizing arms deals and terror. has two distinct elements. The first is the potentially homo­ Middle East Insider, created in November 1986, brings you: sexual disposition, as commonly the case of the boy victim­ ized pyschologically by a certain sort of mother. The second • the Inside story of U.S. Mideast policy is the indoctrination into homosexual practices. • what the Soviets are really doing In the region

• confidential reports from Inside the Middle East During the late 1960s and 1970s, the endemic incidence and North Africa that no one else dares to publish of homosexuality in the United States was greatly,and inten­

• accuracy on the latest terror actions and terrorist tionally magnified, by systematic indoctrinationin homosex­ groups uality as a cult, with a significant role by culpable circles A subscription also includes a "hot line," where you can call within certain divinity and theological schools, as in the case for more information on any item we publish. of the role of Berkeley to this effect in the San Francisco Bay Take out a three-month trial subscription for 1000-DM, and Area. receive one of our recently published special reports as a gift. This cult-form of indoctrination intohomosexuality dem­ Yearly subscription at 5000-DM. (Distributed only by European office.) Write or call: Middle East Insiderclo EIR Dotzheimerstr. onstrated, that although the relevant mother syndrome is the 166, P.O. Box 2308, 62 Wiesbaden F.R.G. Tel: (6121) 88 40. typical history of endemic h�mosexuality, that incidences way beyond such endemic potential can be cultivated with a

40 International EIR May 8, 1987 well-designed approach, under the circumstances appropri­ sensitive as an intelligence service. ate for this. The rock-drug-sex counterculture's spread in the In this, as it bears upon the case of "Smiley ," I have some U.S.A. during the 1960s, had created such an exceptional, expertexperien ce. For years, my own principal function has expanded potential by the end of the 1960s, especially in been primus inter pares among a private circle of friends. areas in which "New Left" political radicalism overlapped One of our principal functions is in the mode of a private the influence of the rock-drug-sex counterculture in a con­ intelligence service. Considering our very modest resources, centrated way. we are among the best in the world at what we do , right Such extraordinary success in creating large numbers of enough to give pain to relevant organs of those regular and homosexuals from otherwise improbable cases, forced the private agencies who might often prefer to conceal what we attention of observers to the fact that the Cybelene cult of reveal. This private occupation brings us athwart various Dionysos was no mere scholar's curiosity, but embodied very intelligence services, and has brought us into that indescrib­ efficientmeans for destroying the youth of society, and turn­ able but very distinct demi-monde called the "intelligence ing them into assassins of their parents, the elite of the urban community. " centers. This was Nietzschean stuff, and produced with well­ The fault in most major intelligence services today, is informed calculation by "New Age" followers of Crowley that they are more pragmatic tribes of Manicheans, than being and others . So, the methods of the ancient cult of Dionysos dedicated to some clear purpose. They practice the slogan: were replicated before our eyes. "Neither actually win, nor actually lose, and never lose badly The observation of this development, through aid of "sen­ enough not to stay within the game to play another day." sitivity group" methods, and the evolution ofthe homosexual Some national intelligence services are technically profi­ movements among men and women since, forced our atten­ cient, in one or more aspects, and some are such pathetic tion back to theintrinsic psychopathological nature of homo­ bunglers in political intelligence such that even we, with our sexuality more generally. Granted, the behavior of the orga­ modest resources, are obliged to ridicule their habitual ig­ nized homosexual cults of Californiaand elsewhere was mass norance and clumsiness. Really good political intelligence, behavior, akin to the effect of concentrating a pack of hungry attuned to coherent and sound long-range strategies, gener­ locusts; the nature of the locust is embodied in the relatively ally does not exist. The Manichean pragmatism is the general more benign state of the same species. In the relatively more flaw. Really rigorous political intelligence is lacking. quiet homosexual, distinct from self-styled "Nazis in Leath­ Good intelligence functioning requires moral qualities of er" parading on California streets, the same potential is en­ judgment, and unbreakable loyalties to the welfare of one's demic. collaborators . Otherwise, the free play of original thought The homosexual's sense of deep guilt about his homosex­ essential to discovering the unexpected or overlooked, is not uality is a necessary part of his condition. He is wrong, but possible. The collaborators must be true collaborators, as­ as long as he experiences a sense that this is indeed contempt­ sembled to no purpose but a common devotion to search for ible behavior, he can tend to function as a useful, reliable useful truths, especially those extraordinarily important truths person in society, apart from the immediate impact of his which are never the generally accepted ones. For such, a affliction. The one grip on sanity available to the deranged "Smiley," as novelist LeCarre portrays him, is intolerable; person, is his inner awareness that his mind is not only an Le Carre's "Smiley" is recognizably a homosexual, without unhealthy one, but a threat to his chance of social identity. need of vettings, polygraphs, or other such diversions. His hope of sanity, is his sense that his condition is a degen­ In brief, it is the dionysiac quality of defect in the psy­ erate one, and his accompanying desire to overcome this chopathology of the homosexual, which is the source of his flaw. Remove that painful sense of guilt, and his becomes attractionsto the pleasure of the act of betrayal. It is this flaw, unmitigated depravity. more or less developed, which renders the homosexual in­ Once the homosexual loses that sense of guilt about his trinsicallya security risk in corresponding degree, not merely degenerate condition, and thus gives up the idea of recovery, because he is potentially blackrnailable, but merely because he is lost. Worse, if he becomes persuaded that he has a right he is a victim of a homosexual's psychopathology. to choose to be self-righteously a homosexual, his becomes To be a homosexual, is a terrible affliction; if we cared a criminalmind in the strictestsense of the term. He becomes for the human rights of such persons, we should direct our Nietzschean, and is ripe for acts of treason, simply because efforts to curing them of that which makes them so unpleas­ treasonper se may afford him exquisite pleasure. antly distinctive. . In such a state of mind, he might not become a traitor in Assuming that the disclosures in the British press are fact: For example, if he is able to release his propensity for accurate ones, "Smiley" should never have been entrusted evil in other ways. He innermost character is that of an erotic with the position, whether he actually betrayed or not. The egoist in the worst sense, a sadist and pathological liar by damage he did, in one way or another, must have been enor­ disposition, all the traits most intolerable in an agency as mous. Such was written in the character LaCarredescrib es.

EIR May 8, 1987 International 41 Impending financial crash sends Moscow into new period of autarky by Konstantin George

On April 23 , without warning, a Soviet diplomatic cable blind to rebuild postwar Russia into superpower military arrived at the West German foreign ministry, announcing status. that the heavily publicized May 17-23 state visit of West Given these facts and trends, the present manifestations German President Richard von Weizsiicker had to be indefi­ of East European displeasure with Moscow become very nitely postponed. Overnight, what would have been Soviet understandable and explainable. With these Soviet demands, leader Gorbachov' s most significantdiscussions with a West­ a large part of the satellite, junior Nomenklatura. stand to em figure outside of the summit with President Reagan him­ lose their posts and privileges. The role of the East European self, was put on the shelf. ministries, for one, would be heavily whittled down, and the The reasons had nothing to do with von Weizsiickerhim­ demands on many a plant manag�r or director would become self. As Moscow's highest ranking agent of influence in the insufferable. As with every past shift by Russia into a new West German political structure and the pro-Soviet German "period," purges and, in this case, actual toppling of satellite Protestant Church (EKD), he was slated to receive the red leaders, will be on the agenda. carpet treatment. Only very great turbulence in Moscow, The Soviet leadership, too,· will have its problems. A caused by paramount, strategic considerations gripping the full-scale Western economic collapse will contain many un­ Soviet policymaking elite, could account for so stunning a predictables and surprises. Under conditions of impending cancellation. and actual financial crash, the tendency of Western elites to The Soviet leadership has adopted the strategic assess­ tum to crisis-ending policies and options will increase expo­ ment that the West is on the brink of a financial catastrophe. nentially. Concretely, this means a surge in influence and Under such circumstances, what Moscow has cancelled is power for the founder of this magazine, presidential candi­ not von Weizsiicker's itinerary, but Soviet leader Mikhail date Lyndon LaRouche. Of this point, Moscow is well aware. Gorbachov's foreign itinerary, for at least the immediate The answer is, "No." A certain agenda prepared for Gor­ future. bachov, under the assumption that a financial crash in the West was not impending, is "finished." The highest echelons The facts of the Soviet Nomenklatura have come to the conclusion that On April 25, the Yugoslav news agency, Tanjug, sud­ an impending financial crash in the West is on the agenda, denly announced that Gorbachov's visit to Yugoslavia "in and in that light, the Soviet agenda must undergo major 1987" was indefinitely postponed. Tanjug had reported that changes. Gorbachov was definitely coming to Yugoslavia "this year" only two days earlier. The new agenda These arenot isolated instances. All of Gorbachov' s non­ When things crash in the West, the Soviet Union, to use bloc itinerary, and at least one instance within the Soviet Soviet parlance, enters a new "period," where, especially in bloc, either as host or guest, for at least the next two months, terms of economicpoli cy, the cCi>nceptof autarky prevails­ has been cancelled. Intended state visits to Greece, Italy, and historically as in the 1929-inaugurated "Third Period" under Romania have all vanished. Stalin. The Soviet Union is now embarkedon preciselysuch A silly Kremlinologist might at this point ask: "Does this a course. Here we can preempt theKremlinol ogists' fixation pattern of cancellations mean thatGorbachov is finished?" on "what will happen to Gorbachov?" These Soviet demands would place the East bloc states And in fact, oppositeto the patternof cancelled non-bloc back to a degree of extreme bondage that has not existed engagements, General Secretary Gorbachov is being handed since the time of Stalin, when, under the regime of "joint a thick schedule of East bloc engagements . stock" companies, the East European economies wererobbed One point must be stressedhere . The coming to the fore

42 International ElK May 8, 1987 of Comecon autarky does not mean that Gorbachov and the Note the terms "priority thrust," "mastering the heights Soviet leadership have abandoned strategically vital policy of scientific-technologicalrevolution ," and "core . . . of eco­ thrusts directed at the West. For example, with or without a nomic ties." Under conditions of a Westerneconomic crisis, financial crash, Moscow will continue to play the "Reagan the Soviet Union cannot count on joint ventures and other card" to attempt to nail down, this year, the "zero option" deals with the West as the basis for accomplishing Gorba­ agreement to remove U.S. longer-range and medium-range chov's oft-stated priority of modernizing industry. Russia missiles from Europe . must rely chiefly on those foreign resources at hand, the President Reagan's latest public statements endorsing both already heavily looted economies of its East European satel­ the so-called first zero option (missiles with ranges from lites. The hapless satellites must now not only provide more 1,000to 5,000 km) and the second zero option (missiles with economic and technological "tribute," but submit their eco­ ranges between 500 and 1,000 km), and demanding that nomic enterprises and scientific capabilitiesto forms of direct Europeans drop their opposition, show once again that Mos­ Soviet control not seen since the Stalin era and its immediate cow has everything to gain-a denuclearized, helpless Eu­ aftermath. rope , devoid of credible U.S. nuclear forces on the scene­ Hints of this emerged in the next part ofRyzhkov 's speech, and nothing to lose by vigorous pursuit of the "Reagan card." where he demanded that "unsolved problems" and current To sign an INF (intermediate-range nuclear force)agree­ "stagnation" in Comecon integration be overcome. "Changes ment that would trigger the decoupling of Western Europe, of a complex character are necessary ,," and, "Comecon forms beginning with West Germany, from the United States, Gor­ and methods have to be fundamentally renewed." bachov would be more than willing to add a superpower Ryzhkov's autarchic pronouncements are by no means summit to his 1987 calendar. That said, we can devote our confinedto a Comecon crash program to modernizeRus sia's attention to the pronounced autarchic thrust in the Soviet civilian economy. Every resource, humanand physical, within Bloc. Comecon is to be enrolled in Russia's hi-tech space and SDI­ militaryprogram s: "The decisive role will be played by the New priorities complex program of scientific-technological progress of the The fact that the Soviet Union is entering another autarch­ Comecon member countries. This program is without prec­ ic "Third Period" was illustrated in a most dramatic manner edent concerning the socialist international division of labor. in exactly the same time frame , April 22-25, that Gorba­ Its aim is to reach the highest level in the direction of scien­ chov's cancellations were being reported. On April 23, the tific-technological progress." Soviet news agency Tass announced that a Warsaw Pact There you have it. The Russian "priority policy thrust": summit would be held in East Berlin, May 28. A day earlier, quantitatively and qualitatively expanded Soviet bloc autar­ Radio Budapest carried an announcement by Hungarian For­ ky. This is one of the crucial Soviet news stories of the year­ eign Trade Minister Peter Veres, that a Comecon summit for that matter, of the decade-and yet, it is missed, ignored, would be held "by mid-year," i.e., before July 1, and most or covered up in the Western media. To be sure, the 1980s probably in late June, to discuss "Comecon integration." have witnessed important new "supranational" Comecon Veres spoke on the same day that Soviet Politburo ideo­ projects in primarily the energy and transport sectors, rammed logical boss, Yegor Ligachev, arrived in Budapest. down the satellites' throats by Big Brother in Moscow. But April 22 is no ordinary day in the East bloc. It is Lenin's what is now on the agenda is of an entirely new dimension, birthday. Announcements made on such an occasionare gen­ which brings us to the story within the story. erally significantin Moscow. This year in Moscow, the Lenin birthday speech was Gorbachov's Prague visit given by Soviet Politburo member and Prime Minister Ni­ While the Western media was fixated on Gorbachov's kolai Ryzhkov. The theme was "Comecon integration." utterances on the "zero option" during his visit to Prague, Ryzhkov emphasized that "the deepening of integration they largely ignored his groundbreaking remarks--demands is considered the prioritythrust of our international activity." would be a better word-on the subject of "Comecon inte­ He expounded Moscow's new supranational emphasis on gration." Comecon policy planning, stating that within the Soviet bloc, Gorbachov "informed" the Czechs that Moscow had a "there is not one country, big or small, that can master the new program for the Comecon. The Comeconcountries would heights of scientific-technologicalrevolutio n, without inten­ start establishing supranational "joint enterprises" with Big sive exchange of scientific developments, without the most Brother. Gorbachov called for the introductionof "common many-faceted forms of internationalcooperatio n. The CPSU socialist property," held by "supranational economic enter­ intends to fully expand its participation in the international prises." In plain Russian, the Soviets are now demanding division of labor. This refers above all to cooperation in the nothing less than the transformation of the national econo­ framework of the Comecon, which is the core of fo reign mies and agglomerates of enterprises, into Soviet "common economic ties." socialist property. "

EIR May 8, 1987 International 43 Colombia's 'Project Democra�y' mafia takes it on the chin by Val erie Rush

When Colombian President Virgilio Barco granted legal sta­ idarity. Behind the attempt to breathe life back into AIFLD's tus to the new 800,000-member UnifiedWorkers Confeder­ dead horses is a longstanding asset of Project Democracy in ation (CUT) April 13, he did so despite the stalling and Colombia, Liberal Party chairman Ernesto Samper Pizano. protests of two successive labor ministers, and of the lead­ Samper, the political heir to mafia godfather and former ership of the rulingLiberal Party which elected him. He also President Alfonso Lopez Mi¢helsen, is also a top contender did so in defiance of Proj ect Democracy's "invisible govern­ for the 1990 Liberal presideptial nomination. With Lopez, ment" in the United States, whose tentacles reach deep into he is a public relations mouthpiece for the drug trafficking Colombian labor and political circles. "Medellin Cartel," and top d�g legalization lobbyist. The CUT was created in 1986 out of a series of schisms On April 21, Samper addressed a student forum at Bo­ in the Colombian trade union movement, which had over the gota's Central University, where he was asked why he had previous decade been increasingly corrupted by a drug mafia apparently retreated from his, pro-legalization crusade of the in cahoots with the agents of Project Democracy's American 1970s. Samper replied that he fully stood by his proposal for Institute for Free LaborDevelopment (AIFLD). Veteran trade marijuana legalization, involving state purchase of Colom­ ' unionist and former Labor Minister Jorge Carrillo P . IS ' .•, L . � marijuana crops , for sale or exchange with the United the majority of the captured labor federations' rank -and-file States. He warned that if thi1l were not done, "the day could out of the clutcbes of the mob and into a new mass institution. arrive" in which Phillip Monis would be selling reefers to The CUT now represents 80% of Colombia's organizpd la­ Colombia. bor. Barco's decision to legalize the CUT came in the wake The coup de grace? of an historic settlement, engineered by Carrillo, of a labor If the legalization of the

eastern Colombia. Carrillo, known for his philosophy of Sampe' as "the son of politic� decadence in Colombia" could seeking a "harmonyof interests" between business and labor, be the coup de grace . Senator Ivan Marulanda, a leader of was universally expected to fail; his methods were mocked, the New Liberalism dissident factlOl1 within tile Liberal Par­ and his enemies warned that the Communists would move ty , shattered the "mutual nop-aggression pact" among Col­ into the breach. Instead, Carrillo won a guaranteed eight­ ombia's political elites in $1 April 12 interview with the hour day, limits to mandatory overtime, a mutually accepta­ newspaper El Espectador, where he laid bare both the per­ ble wage increase for 50,000banana workers-and President sonal and institutional corruption of the "official" Liberal Barco's gratitude. Party , singling out Samper as the epitome of that corruption. Although Marulanda did� not receive unanimous support The dispossessed from his New Liberalism colleagues, he may have succeeded The howls of protest were not long in corr..ing from the in halting the dissolution of his movement implied by its suddenly dispossessed AIFLD-mafia forces. The UTC, of ongoing "unity talks" with tb.e Samper crowd. A week after which Carrillo had been vice-president, whined that the CUT Marulanda's statements, New Liberalism head Luis Carlos was "theunionized arm of the guerrillas, seeking the reelec­ Galan sent a message from 40ndon in the form of a letter to tion of [ex-President] Belisario Betancur, and being run by President Barco, in which he rej ected a proffered ambassa­ the Communist Party in the service of the Soviet Union." dor's post and reaffirmed his movement's ideological inde­ AnotherAIFLD mouth piece, president of the nominally "in­ pendence. dependent" Metallurgical Workers Federation, charged that Galan also urged that "transparency" of all electoral cam­ the CUT was "j ointly financed by the Soviet Union and the paign funds be imposed. Since Samper is universally known Schiller Institute," the latter founded by Helga Zepp-La­ to have accepted campaign bribes in 1982 from cocaine czar Rouche, wife of Lyndon LaRouche. Carlos Lehder, it was not dlfficult to figure out that Galan The remnants of the abandoned labor federations were was suspending the "unity tailks ," at least for now. then pulled together into the National Council of Labor Sol- Marulanda's statements also upset the plans of the Sam-

44 International EIR May 8, 1987 per mafia to buy up the municipalities in Colombia's first­ we stand once came the traditions and ideas of the rights of ever mayoral elections in March 1988, elections which are man which were the essence of your nationhood. Be ye also expected to determine the outcome of the 1990 presidential pioneers for the rights of man, who is the image of God." contest. In his April 12 interview, Marulanda stressed that The Pope then said: "A genuine peace must be well rooted in those elections must lead to political change. "To take power the dignity and inalienable rights of man. A truepeace cannot so that things remain the same is not worth it," he said, exist unless serious and determined commitments to apply appealing to the more diffident leaders of his own movement social justice are made. To work for peace means making the to join his battle for morality in politics. commitment to promote justice an9 to defend and protect the The CUT, too, is already "campaigning" for those may­ fundamental rights of man." oral elections, the firsttime organized labor will be deploying The Unified Confederation defends the right to life in its itself in a show of political strength. In an April 24 speech, broadest sense. A child's right to birth and nourishment so excerpted below, Carrillo declared: "The right to life is not that it does not die; the right of the elderly to medical care only the right to exist as a living being, but as a human being. and to a decent life after having given their active years; the The right to life is also a right to spiritual development, right of citizens not to die of diseases such as malaria,yellow culture, education, to the participation of each human being fever, and others for which humanity has already found a in the political decisions that affect us all." cure or means of prevention. On May 1, the CUT will hold a mass Labor Day march In Colombia, 10% of the population is severely malnour­ to Bogota's huge Plaza Bolivar, where Carrillo will offer a ished, and 43% is undernourished. Malnourishment has to program for job creation and economic growth, based on do with levels of family income. In 1980, 25% of children greatergovernment support for industry, and for construction under five years of age belonging to families with less than of "great projects" to bring Colombia's transportation, ener­ 40,000 pesos yearly income, were malnourished, and 50% gy , irrigation, and other infrastructural needs into the 21st of these same children showed stunted growth due to poor century. nutrition. This right to life and health is also the right to decent housing with at least running water, sewage, and electricity. In 1981, 14 million Colombians had no running water. Worse still is that these problems daily grow more acute, because the State cuts the budget appropriations for Documentation these needs and instead increases allocations for foreign debt service. The right to life is not only the right to exist as a living being, but as a human being. The right to life is also a right Speech of the president of the UnifiedWorkers Confederation to spiritual development, culture, education, to the partici­ (Central Unitaria de Trabajadores, CUT), Jorge Carrillo pation of each human being in the political decisions that Rojas, before the Fifth Colombian Forum on Human Rights. affect us all. We have the right to freedom and thus the right not to be enslaved by the foreign debt. Dr. Alfredo Vasquez Carrizosa, president of the Permanent Before Christ there was the inhuman custom of enslaving Committee for the Defense of Human Rights, Members of people who couldn't pay their personaldebts . Solon of Ath­ the Committee, Distinguished Guests. ens was the first rulerto ban this custom. Under the Roman I have the high honor and great privilege of offering this Empire, children inherited the debts of their parents; today, Fifth Forum for the Defense of Human Rights the fraternal the private international banks and Monetary Fund have re­ greetings of the 800,000 workers who today make up the established these pagan customs. On the one hand, we have Unified Workers Confederation (CUT) of Colombia, and a situation in which our rulers act as if they were slaves of who, like yourselves tireless defenders of human rights, are the bankers, and politicians decide who will hold a post but demonstrating that just causes can succeed if defended with cannot decide on economic policy because this is determined unity and decisiveness. from abroad. As things are going, our children, grandchil­ Fromthe day of its inception, the Unified Workers Con­ dren, great-grandchildren and even further generations are federation embraced the principle of defense of life as the going to be paying Colombia's foreign debt. We demand an fundamental objective of its struggle. This forum meets at a immediate suspension of payments of the foreign debt; we time when man's most important right holds no sway in our must recoverthe right to decide our own economic policy. country. We Colombian workers stand with you in this most As Colombian workers, our commitment to the defense noble cause, just as we are sure that you are accompanied by of Human Rights is total. We believe thatwe can only defeat millions of righteous Colombians and patriots of integrity . the enemies of peace, life, and democracy if all Colombians During his visit to Colombia, Pope John Paul II said from agree on any given day to halt our labors, in defense of man's the presidential palace: "From this House of Narino where most precious gift: life.

EIR May 8, 1987 International 45 Report from Bonn by Rainer Apel

A 20-year fight for development along the lines of LaRouche' s propos­ Helga Zepp-LaRouche addresses the Bonn press corps on the als, there is little hope for the Western hemisphere to escape the new crash. heritage of Populo Progressio and the IDB . rum Mrs. LaRouche answered ques­ tions, coming mainly from represen­ tatives of the Catholic Church, on de­ tails of the LaRouche proposals. (The reporters from UPI and AP left, when A t a press conference here April 28, of the Third World to industrial and she began to discuss the idea of devel­ Helga Zepp-LaRouche, chairman of political development. The Vatican's opment.) The audience was quite im­ the Patriots for Germany and wife of contributions to this struggle included pressed, and partly shocked, to learn U.S. presidential contender Lyndon Pope Paul VI's encyclical of 1967 , that by decisive action, the world cri­ H. LaRouche, Jr. , declared that if the Populorum Progressio, and Pope John sis could be $olved within 24 hours. A Western industrial countries had Paul II's encyclical of 1981, Laborem world confeirence of heads of state adopted the 1967 papal encyclical Po­ Exercens. She also described the his­ would cancel the debt of the poorest pulorum Progressio, or LaRouche's tory of LaRouche's political contri­ nations, turn the other Third World 1975 proposal for an InternationalDe­ butions to the development debate, debts from short-term, high-interest velopment Bank, the current econom­ from the IDB to the Operation Juarez loans into lqans with low interest over ic and banking crisis could have been document of 1982, which charted a a longer term.' New credits would be avoided. strategy for Ibero-American integra­ issued for productive purposes, for She spoke in the same room, at the tion and a solution to the debt crisis. infrastructure-building and techno­ Tulpenfeld Restaurant in Bonn, in "You were told already 12 years logical innovation. The 50 million which her husband, almost exactly 12 ago about the solution to the crisis," people currently unemployed in the years ago, had presented his plan for she said. "If the LaRouche proposals OECD countries could be re-em­ an International Development Bank, had been listened to then, the world ployed rapidly. to an audience of about 40 represen­ would not face a devastating banking Responding to questions on mili­ tatives of the press and political insti­ crash now." tary budgets in the Third World, Hel­ tutions. The IDB would have provid­ She called on the audience to ga Zepp-LaRouche referred to Peru­ ed credits for priority projects to in­ imagine what the world would look vian President Garda's policy as "the dustrialize the Third World. like, if Populorum Progressio had best approximation to what Populo­ The occasion of the press confer­ been translated into political action rum Progrfssio and my husband's ence was the release of EIR's new immediately after its publication in proposals mean." She reported on German-language report, on the his­ 1967: "With utmost certainty, most of Garcia's move to scrap unnecessary tory of the past 20 years of fight for the problems the world is facing now, arms purch.,.ses, dating from the peri­ Third World development, with spe­ could have been avoided, already years od of the military junta, in favor of cial reference to Pope Paul VI's Po­ ago." purchasinghelicopters thatcan be used pulorum Progessio. She emphasized that without Pope against the dope mafia and the terror­ The press conference, which last­ John Paul II's recent travels in Ibero­ ists of the Shining Path (Sendero Lu­ ed for two-and-a-half hours, occurred America, the moral resistance of that minoso) group. at an important conjuncture in world continent's governments, like Alan Mrs. LaRouche alsoproposed that history. It was held two days before Garcia's Peru, against the brutal re­ the military aircraft capacities of the the arrival of Pope John Paul II for a gime of the creditors, would likely not industrial nations could be employed five-day tour of Germany; it also took have emerged. for a peaceful purpose, namely trans­ place just a few days after the illegal "It is either a world monetary col­ porting components for infrastruc­ action of the U.S. Department of Jus­ lapse, or the New World Economic ture-building into Third World coun­ tice against the officesof several pub­ Order, that we will have," stated Hel­ tries. "If army engineers can build a lications associated with LaRouche. ga Zepp-LaRouche. "Reaganomics" pontoon bridgeover a riverin less than Mrs. LaRouche reported on the has collapsed, and unless the power of 24 hours, why can't they do the same past 20 years of struggle for the right the United States economy is restored anyplace elsein the Third World?"

46 International EIR May 8, 1987 Mother Russia by Luba George

An empire of 'bantustans' ing the need to drastically lower the Gorbachov's outrageous call fo r "homelands" fo r American "high Muslim birth rates" in the Soviet blacks is nothing new in the Russian ideology. Union, and the need for "mass reset­ tlement" of laborers from the Muslim "labor surplus regions" to Siberia and other "labor deficit"regio ns. Every Soviet citizen has an inter­ nal passport, which records, distinct During the recent Moscow visit of Institute of Ethnography at the fromhis "citizenship" in the U.S.S.R., the U. S. congressional delegation led U.S.S.R. Academy of Sciences. The his "nationality"-Uzbek, Jew, Rus­ by Jim Wright(D- Tex.), an extensive Ethnography Institute has for years sian, etc . meeting was held with General Sec­ maintained the most meticulous rec­ Further, Soviet denunciations of retaryMikhail Gorbachov on April 17. ords of ethnic groups, tribes, and mi­ South African "apartheid" are a patent At one point in the discussion, Gor­ norities, and their correspondingpre­ fraud . The Soviet concept of "ethnic bachov recommended that the ideal Christian primitive belief structure , maps" is directly parallel to the South solution for the "black question"-and around the world. The records include African "bantustan," or "black home­ other minorities-in the United States detailed studies on inter-ethnic ani­ land." In the Muslim Republics (Uz­ would be the creation of an autono­ mosities and conflicts, which can be bekistan, Turkmenistan, Tadjikistan, mous black state. manipulated to dismember nation­ Kirghizia, Azerbaidjan) , the direct "Our Soviet system of autono­ states, particularly in the developing parallels with the apartheid system go mous republics is based on ethnic sector. even further. The Russian ethnic pop­ background and culture," he said. "We In a document titled "Soviet Eth­ ulation residing in those Muslim Re­ have regions named for minorities such nography Today" (published in Social publics is urban-centered, living in as Tartars , Jews, and Chukchi Indi­ Sciences, Vol. VII, No. 1, 1976), "Russian districts" (the equivalent of ans. We have respect for our nation­ Academician Bromley writes: "Soon South Africa's "white townships.") alities in this country . Why don't you after Soviet power was established, The Russian population in these areas have such autonomous states for Lenin noted the need, in connection is composed primarily of'party func­ blacks, Puerto Ricans, and the Pol­ with the preparations for the demar­ tionaries, managerial elites, and skilled ish?" cation of Central Asia, for, among workers . Nearly all manual and rural This brutally racist statement, other things, a special ethnographic labor is done by the "natives." which shocked the congressmen pres­ map of 'Turkestan with a subdivision How far the Soviet mania for cre­ ent, was no aberration on the part of into Uzbekia, Kirghizia, and Turk­ ating a "bantustan" for every ethnic Gorbachov , but expressed the essence menia.' In the 1920s, Soviet ethnog­ group has gone, can be illustrated in of "Great Russian" attitudes concern­ raphers completed a number of eth­ Stalin's policy regarding the "Jewish ing ethnic and racial questions, both nographic maps of multinational re­ question." Unlike other ethnic minor­ before and afterthe Bolshevik Revo­ gions of the U.S. S . R. and later they ities in the Russian empire, the Jews lution. began preparing ethnic maps of all were dispersed and had no territory Soon after the Revolution, Bol­ parts of the globe. . . . Soviet ethnog­ that could be turned into a "home­ shevik leader Leon Trotsky authored raphers and ethnodemographers are land." In the 1920s, Stalin created a a Comintern pamphlet calling for the now jointly compiling an 'Atlas of the "promised land" for the Jews far out establishment of an "autonomous" Population of the World,' the numer­ in the Siberian East, where no Jews homeland for American blacks, in Al­ ous maps of which will spatially re­ lived. Several tens of thousands of abama and Mississippi. cord the basic ethnic and demographic Jews were forceably resettled there, On this point, Trotsky was thor­ indicators of all peoples of our plan­ and overnightthe "Jewish Republic of oughly in line with Lenin, and later et." Birobidjan" was added to the long list Stalin. It has been the official Soviet Under Gorbachov, Bromley con­ of Soviet "bantustans." policy ever since, as evidenced in the tinues to play a leading role as the The same racist attitude is vividly writings of today's top Soviet ethnog­ Soviet nomenklatura's "in-house" expressed in recent Soviet articles at­ rapher, Julian Bromley. Bromley is racist ethnographer. More recently, he tacking the "Westernizing" influence the Director of the Miklukho-Maklai has authored policy papers emphasiz- of the Catholic Church in Africa.

EIR May 8, 1987 International 47 Dateline Mexico by Hector Apolinar

Dismantling the Oj inaga connection an elaborate party, and arrested one Taking out thehead of the Chihuahua-based drug ring could Bechir Bechelani Bachur, one of the ultimately expose afar more important can of worms. principal leaders of the Syrian Nation­ alist PopularParty , known throughout the world for its terrorist suicide raids in Lebanon. Those arrested with Be­ chelni were caught with cocaine, op­ Pablo Acosta Villarreal, the pow­ States. Even a helicopter from Fort ium, and a vast quantity of jewels. erful gangster chieftain of the Chihu­ Bliss, in EI Paso, Texas, was on loan Officialinvestigators believe that drug ahua-based marijuana and cocaine to assist the operation. trafficking groups in Mexico ex­ traffickingring knownas the "Ojinaga Following Acosta's death, the change illegal narcotics for what are Connection," was killed in a shootout prosecution of the 200 members of his probably "hot" jewels in the United with 60 Mexican federal agents on band throughout the surrounding vil­ States. April 25. The agents had surrounded lages in the state of Chihuahua was Bechelani tried toget released on the Acosta Villarreal ranch some 100 launched. On April 28, the federal ju­ bail a few days afterthe arrest, but was kilometers east ofOj inaga, on the bor­ dicial police (PFJ) announced the ar­ held over fpr prosecution along with der with Texas, and when the smoke rest of one Ernesto Poblano Fernan­ others arrestedin the group. Both Be­ had cleared one of Mexico's most in­ dez, 40, on charges of being a leading chir and his brother Elias form part of famous drugkingpins was "taken out." partner-in-crime of Pablo Acosta. The an extensive network of Syrian-Le­ Acosta's death was the latest of a surprise came when commander Guil­ banese who live in Mexico and are series of major blows that have been lermo Gonzalez Calderoni, the same controlled by or work for the Syrian dealt to his extensive network of co­ agent whose operation took Acosta intelligence service to carry out sub­ caine and marijuana distribution, a days earlier, told the press that Pob­ versive operations throughout the network which extends from Califor­ lano Fernandezwas a leading member Western hemisphere. nia to Texas. Because of the sheer vol­ of the Nazi-Communist National Ac­ Protector of the Bechelani broth­ ume of narcotics his ring handled, tionParty (PAN) inChihuahua, as well ers is the Archbishop of the Orthodox Acosta was considered number 9 on a as the former municipal president of Antiochian Church, Antonio Ched­ list of the 10 most important drug traf­ Oj inaga. raui, who represents that church in fickers in all of Ibero-America. Intel­ EIR has extensively documented Mexico, Central America, the Carib­ ligence reports by narcotics authori­ the fact that the PAN party received bean (including Cuba), and Colombia ties in both Mexico and the United both financial and political support and Venezuela. States estimate that Acosta command­ from Oliver North's "Project Democ­ Chedraui, intum, is a veteran agent ed an army of 200 "soldiers." racy" and the "invisible government" of Syrian intelligence; his family is In an earlier column on the ''OJ in­ in the United States, for the purpose known throughout Lebanon for its aga Connection," we reported that of fostering the political destabiliza­ skills in espionage and subversion. Acosta was associated with the infa­ tion of Mexico . Elhier Flores, PAN Chedraui's sister Asaf was behind the mous "Medellin Cartel" which han­ leader in Ciudad Juarez, Chihuahua, "Profumo" scandal in Britain which dled the Colombian connection. declared defiantlythat there would be led to thefall of a government. Ched­ According to information made no purge of the party 's members due raui himself has powerfulcontrol over available only hours after the bloody to Poblano's arrest. It is no accident the Mexican-Lebanese community, shootout, the operations against Acos­ that the PAN is also known in Mexico through his influence in the Maronite ta were backed up by such U.S. agen­ by the name "Party of Supportfor the Catholic Church headed by Monsi­ cies as the Drug Enforcement Admin­ Drug Trade" (Partido de Apoyo at gnor Jack Najam. istration (DEA) and the FBI, who at Narcotrafico). One ofthe men closest to Chedraui the requestof the Mexican police had On April 9, as part of the opera­ is the Maronite renegade Pedro Sar­ set up a virtual blockade along the tions against Acosta's Ojinaga drug quis, husband of Martha Lara de Sar­ U.S.-Mexican border where Acosta's ring, Mexican army troops under the quis, who is the secretary general of ranch was located, for the purpose of command of General Vinicio San­ Chihuahua state's ministryof govern­ preventing his flight into the United toyo, raided a luxurious home during ment.

48 International EIR May 8, 1987 Books by Lyndon LaRouche

o So, You Wish to Learn All About Economics? $9.95. 1984

o There Are No Limits To Growth $4.95 1984

o Why Revival of 'SALT' Won't Stop War $3.95 1980

o What Every Conservative Should Know About Communism $3.95 1980

o Will the Soviets Rule During the 1980s? $3.95 1979

o How to Defeat Liberalism and William F. Buckley $3.95 1979

o The Independent Democrats' 1984 Platform $5.00 Order from: Published by Independent Democrats for LaRouche. Ben Franklin IJooksellers, Inc. 27 South King St. Leesburg, VA 22075 o Program for America $10.00. 1985 (703) 777-366 1 Published by the LaRouche Democratic Campaign. Add shipping cost at $1.50 for first book, $.50 for each additional book. o The Power of Reason: 1988 $10.00 Bulk rates available on request.

LaRouche-at the center of current history

The "I have been at the center of some among the leading Power of crisis-developments affecting current history, including the Soviet and liberal establishment efforts to destroy the Stra­ Reason: 1988 tegic Defense Initiative." -Lyndon H. LaRouche, Jr. "Lyndon LaRouche is striving to undermine the influence of Communists and other left forces among the workers and student youth." -Izvestia, March 12, 1984 "It's LaRouche's people. He's persecuting me." -Henry A. Kissinger, responding to a demonstration In April 1983

Please send me copies of The Power of Reason: Name ______1988 by Lyndon LaRouche, at $10.00 per book (plus postage and handling-$1.50 for 1 book, $.50 for each Address ______-;.-______additional book). City ______State __ ---;.__ Zip __ _ Please charge my __ American Express __ MasterCard ______-;- ______Visa __ Diners Club __ Choice __ Carte Blanche Telephone

______Card No. Exp. Date Make checks payable to: Signature ______Ben Franklin Booksellers. 27 South King St. . Leesburg. Virginia. 22075.

EIR May 8, 1987 International 49 InternationalIntellig ence

sified file on the matter. 'They are worried eral members. Then on April 23, former Pop e arrives in Germany not only by the British situation,' said the Prime Minister Mohammed M'zali, in exile amid terroristthreats sources. 'Scientists have also died or dis­ since last year, was sentenced to 15 years at appeared in Sweden, West Gennany, hard labor, on trumped up charges. M'zali France, and Italy. They are looking for links had incurred the wrath of the International Pope John Paul II arrived in West Ge y nnan not only between the individual deaths but Mone Fund for his opposition to its aus­ for a five-day visit on April 30, as assorted tarY between the deaths in the different terity conditionalities, which have fostered satanists, feminists, Greens, and terrorists ,,, countries. the rise of Islamic fundamentalist protest mobilized against his visit. In Cologne, Among the recent incidents cited are: movements. where a huge public mass was scheduled to • The disappearance of scientists beheld on May , posters appeared showing three I in West Germany in 18 months; the pontiff'sprofile with a gun-sight painted • The apparent suicide in January of Illegal Carter-era arms over it, and the slogan: "Only the blessed Swedish chief arms inspector Carl Fredrik enter the kingdom of Heaven." Algernon; deals with Iran exposed Joseph Cardinal Hoffner, the bishop of • The assassination in March of Gen. Cologne, described this as a "mean threat The London weekly the Observer in its April Licio Giorgieri, head of weapons develop­ against the life of the Pope ." He denounced 26 issue reveals that covert U . S. arms sales ment procurement for the Italian Air Force, the plans for protest demonstrations by the to Iran began during the Carter administra­ and responsible for awarding SOl contacts; anti-papal demonstrators, comparing them tion, with State Department, CIA, and FBI • The assassination in 1986 of Lando the anti-church campaign of the Nazis . approval, and using the services of the Ira­ to Conti, former mayor of Florence, associate Today's pamphlets and slanders, he stated, nian arms-trafficker Cyrus Hashemi. These of the Italian defense minister, and head of remindedhim of Nazi ideologue Alfred Ro­ facts are well known to EIR readers , but a major electronics company; senberg's Myth of the 20thCentury, and of have hithertobeen covered up by other me­ • The assassination of France 's Gen. the Nazi publications and dia. A *porter from the Observer had at­ Sturmer Pfaffen­ Rene Audran in 1985; spiegel. tended BJR ' s press conference in London on • The attempted murder in France of The protest campaign is being spon­ April releasing the Special Report on Guy Brana, a former major commercial arms It sored by feminist groups, the pro-abortion "Project Democracy: The 'parallel govern­ executive; movement, Green Party, the "church ment' bclhind the Iran-Contra affair. " the and • The disappearance of Prof. Svante from below"-the German brand of "liber­ The article, written by Patrick Seale, was Oden, Swedish expert on submarine detec­ ation theology ." highly publicized pro­ titled, "aevealed: U. S. broke armsdeal em­ The tion. He was last seen on July 30, 1986, tests are intended to promote "New Age" bargo years before Irangate." Seale reports: when he took his fishing boat, loaded with ideologies, some sponsors, notably "Five years before the Irangate scandal , and from sensitive equipment, out of a harbor north the Greens, are openly endorsing witchcraft United States governmentagencies subvert­ of Stockholm. and satanism, which they call "an ancient ed the official U.S. embargo on arms sales science suppressed for centuries by the to Iran . Evidence that the CIA and the FBI Catholic Church." Tslamicfu ndamentalists approved clandestine military shipments to Iran as early as 1980 has been presented to riot in Tunisia Judge Lawrence E. Walsh, the special Ir­ CIA investigates deaths angate prosecutor. Several hundred militants of the Islamic "The recent covert activities of Presi­ of Europ ean scientists TrendMovement rioted in the Tunisian cap­ dent Reagan's National Security Council ital on April23 , protesting thearre st inMarch were not, therefore , a one-of-a-kind aber­ U.S. intelligence agents are investigating of their leader, Rashid Ghannoushi. Dis­ ration, but only the latestinstallment in shady the mysterious deaths of British and Euro­ turbances took place elsewherein the coun­ Americantransactions with Irandating back peandefense experts, fe aringthat thereis an try. to the early days of the Khomeini regime . SOl link tothese events, according to a re­ The riots are occurring as the Tunisian "A central figure in these transactions port in the British newspaper the Mail pub­ establishment is playing with fire, both in its '(yas Dr. Cyrus Hashemi, the millionaire Ira­ lished April 26. "Most, if not all, the experts relationship with Libya's Muammar Qad­ nian banker and arms dealer who died in a were involved in classified work connected daft, maintained despite Libya's defeat in London hospital last July after a brief and with the U.S. SOl. State Departmentsources Chad, as well as in the in-fighting around mysterious illness .... Hashemi was the in Washington told The Mail on Sunday last the presidential succession:On Aprl1 15, the first to open a secret channel between Teh­ week, that the CIA has an open, highly clas- ruling party's leadership was purged of sev- eran and Washington, and the first to pro-

50 International EIR May 8, 1987 Briefly

• INDIA is "reviewing its nuclear options" because of the "emerging nuclear threat" from Pakistan, said pose an 'anns-for-hostages' deal .... headed by the double-dyed reactionary L. Defense Minister K.C. Pant in Par­ "Hashemi was never prosecuted, and was LaRouche [sic] . His open animosity toward liament on April 27. "Our response released on payment of a $100,000 bond. O. Palme is not doubted by anyone .... will be adequate to our perception of Most unusually, he was then allowed to travel "Now, writes Expressen, members of the threat," he said. to Britain, where he acted for the CIA in the investigatory group have departed for international anns deals." the U.S.A. , to search for this ELP female HELMUT SCHMIDT, former activist. At the same time, the American • Chancellor of West Germany , claims Federal Bureau of Investigation (FBI) yes­ he is the author of the "zero option" Iz vestia issues new terday conducted a search at the premises of for a denuclearized Western Europe, several organizations, which are partof the in an op-ed for the InternationalH er­ attack on LaRouche 'LaRouche Empire . ' It was during a similar aidTribune April Schmidt says it search, conducted in October of last year, 30. The Soviet government newspaper Izvestia is "absurd to term these proposals that police discovered at the private resi­ on April 25 published an attack against U.S. communist ones," since they go back dence of this extremist many notes and other presidential contender Lyndon LaRouche , to initiatives he himself launched documents, in which the murder of the prime the latest in an escalating series appearing in . within the Western Alliance years minister of Sweden was discussed [sic]." the Soviet press. ago . Like many of the recent broadsides, the article sought to pin the February 1986 as­ Bilderbergers contemplate • BELISARIO BETANCUR, the sassination of Swedish Prime Minister Olof former ColombianPresident, has been Palme on LaRouche 's associates from the collapse of the economy · called to appear before a commission European Labor Party in Sweden. This tac­ of the House of Deputies, where he tic was initiated by Soviet Central Commit­ According to U go Tramballi, correspondent will be grilled on his actions during tee member Georgi Arbatov immediately for Italy's II Giornale newspaper, an ultra­ the narco-terrorist assault on the Jus­ afterthe Palme assassination, and was picked secret meeting of the Bilderberg Group of tice Palace in November 1985 . Crim­ up by the Western media, only to be dropped oligarchs took place at the end of April at inal charges against Betancur could as its absurdity became transparent to all. Cernobbio, on Lake Como. One thousand ultimately come out of the "investi­ Recently, however, the Soviet and Swedish police and carabinieri surrounded the Hotel gations," if the narco-politicos have media have started the drumbeat again, in Villa d'Este, preventing journalists from their way. coordination with Irwin Suall of the Anti­ getting near. Among those reported to be Defamation League (ADL) in the United attending were Paul Volcker, Henry Kissin­ • 'HITLER and Stalin's ghosts are States. ger, David Rockefeller, Beatrice of Hol­ probably having a nice toast right Izvestia's Stockholm bureau wrote: land, Gianni Agnelli, Guido Carli, and Raul now," said Ann Linnas, daughter of "Swedish police, investigating the circum­ Gardini. Karl Linnas, whom the U.s. Depart­ stances of Olof Palme's murder, are con­ One participant indicated that the eco­ ment of Justice has sent to his death ducting an intensive search for a woman, nomic crisis was a major topic of consider­ in the Soviet Union, according to the who for a long time was one of the leaders ation: "The next couple- of weeks are very April 23 Jerusalem Post. Mari Rik­ of the Stockholm section of the right extrem­ decisive for the world financial situation. ken, vice-president of the Coalition ist organization, the 'European Labor Party' The dollar-to-yen pattern and the failure of for Constitutional Justice, an East

(ELP) . Central Bank intervention, are critical signs, European emigre group, warned that "Suspicions against her, writes the pa­ while fundamental factors are pointing to­ Linnas will be "only the first of per Dagens Nyheter, "intensified, in con­ ward a storm, which may become a hurri­ many ." nection with the testimony of a witness who cane of the 1929-31 model. ...If Ronald saw this woman on the evening of the mur­ Reagan sticks to his insistence that there is • REGENSBURG, the "company der, at the movie theater at the same time a 'recovery,' then we've had it. If govern­ town" of the Thurn und Taxis oli­ the Palme couple was inside. It is also note­ ments would act now, thatwould mean, psy­ garchical family in West Germany , worthy, that the trail, which the police are chologically, thatfactor the of trustwill come was the host city at the end of April following in their search, leadsto the U.S.A., back, and a crash could be headed off. But for a "dialogue" between the Russian where she hid, soon after the crime. The it may take some crisis, some shaking-up, Orthodox Church and a Roman Cath­ Swedish press recalls in this connection, that in the next days, to get people to act. My olic contingent led by German Car­ it is precisely overseas, that the main head­ hope isthat the lessons of 1929-31 have not dinal Wetter. quarters of the ELP is located, which is been totally forgotten."

EIR May 8, 1987 International 51 �TIillNational

Lawrence Wal sh indicts 'Project Democracy'

by Webster G. Tarpley

Independent Counsel Lawrence Walsh, with his April 29 contributors brought in by Channell. The White House was indictment of Carl R. "Spitz" Channell, has set into motion at pains to point out that the i President is "not part of the a series of legal proceedings that promises to bring down all conspiracy." Previously, Sen�or Inouye had been stressing the treesin the forest of "Project Democracy," the conspiracy that Reagan faced further embarrassment and injury in the against the United States Constitution that is at the heart of scandal, and that he was muth more knowledgeable than the Iran-Contra scandal. In appearing before U.S. District might appear. Judge Stanley Harris to plead gUilty to a conspiracy to defraud the federal government of tax revenues, Channell, the first Mossad attempts a cover-up criminal defendant in the Iran-Contra affair, was asked who Walsh's move against Cha1mell, who will cooperatewith his co-conspirators were. Channell responded by naming two the independent counsel's probe , is a first counter to efforts persons: Lt. Col. Oliver North ofthe National Security Coun­ by forces of the Israeli Mosfad and the Zionist lobby to cil, and Richard Miller, the president of International Busi­ sabotage Walsh's investigati0n and protect the numerous ness Communications (IBC), one of the entities depicted on Israeli Project Democracy assets who are up to their necks in the now-famous North flow chart published by the Tower the lrangate quagmire. Commission. As EIR ' s Special Report on Project Democracy Key to the Israeli sabotage and cover-up campaign are · has documented, Miller and IBC received appropriations of the two Mossad-manipulated congressional select Irangate $500,000 from the National Endowment for Democracy committees, whose public hearings will commence on May (NED) , the public and official arm of Project Democracy, 2, with appearances by General Secord and Robert Mc­ which is funded by Charles Wick's U.S. Information Agency Farlane. The point-man here is Arthur L. Liman, the chief and the State Department. IBC was also a recipient of $1.7 counsel to the Senate committee. Liman's moral essence is million from the LakeResour ces, Inc. bank account at Credit best summed up in the fact that he has been a lawyer for Suisse in Geneva run by Gen. Richard Secord. Robert Vesco, the drug-pushing mass murderer and heir to

With that, the status of the NED as a keystone of the the Meyer Lansky organized crime family who currently conspiracy referred to by North in his notes as "Project De­ operates out of a safe haven in Castro's Cuba. Liman is a mocracy," is well on its way to being proven in a court of member of the New York law firm of Paul, Weiss, Rifkind, law. The Tower Commission's refusal to concede that the Wharton, and Garrison, and has numbered among his other NED is equivalent to Project Democracy, is exposed as in­ clients Dennis J. Levine of Qrexel-Burnham, who pleaded competent, and the accuracy of EIR ' s assertionsin thisregard guilty to insider tradingcharg es, organized crime figureJohn is once again confirmed. The NED, Project Democracy, and Zaccaro, Steven Ross of Wamer Communications, and cor­ Channell's homosexual ring are the same network. porate raider Carl leabn. Liman's counterpart on the House These new Irangate developments bring the Reagan pres­ committee is John Nields, fonnedy a lawyer for the House idency back under direct attack. Channell was paying $20,000 Ethics Committee during the Koreagate investigation of the per month to David Fischer, a former personal assistant to late '70s. the President described as "Reagan's right-hand man, his The Mossad coverup tactic has been to play the congres­ door opener." The President was meeting personally with sional committees against the iWalsh investigation. Recently

52 National ElK May 8, 1987 Sen. Warren Rudman (R-N.H.) launched a raving attack on tries," including the Swiss government,which has promised Walsh, accusing him of drawing his probe out "ad nauseam" cooperation. Walsh, explicitly rejecting Rudman's demands in pursuit of "some grand, wild conspiracy." Rudman de­ that his inquiry be aborted, points out that "an ample basis" manded that Walsh drop the conspiracy investigation, con­ has been developed for the probe, with "most lines of in­ fine himself to the question of obstruction of justice in the quiry" proving fruitful, and none of them having been aban­ fall of 1986, and wrap up his inquiry as swiftlyas possible. doned so far. Walsh warns against further grants of immunity The congressional committees, which have the technical by the congressional committees, noting that in the Water­ power to overrule Walsh in any disputes, have been avid to gate scandal, "no immunized witness who refused to plead grant limited immunity to a number of principals in the case. gUilty was successfully tried and convicted." Walsh says that During the last week of April, Walsh clashed with the the "allegations in the investigation concern possible viola­ congressional committees over the question of immunity for tions of public trust and possible misuse of position by high Thomas Clines, the right-hand man of Theodore Shackley, government officials and their manipulation by former gov­ whose activities are described in EIR's Special Report. Walsh ernmentofficia ls. Large sums of money are unaccounted for insisted that Clines get no immunity because he is "a princi­ and those most knowledgeable resistpublic disclosure." Walsh pal" of the criminal investigation, and apparently carried the concludes that "further grants of immunity to central figures day . But the congressional committees, after granting im­ in the investigation will jeopardize their prosecutions and munity to 11 persons, including Albert Hakim , have now may prevent a fair and judicious assessment of individual granted immunity to Adm. John Poindexter, under a special culpability. " arrangement that will delay his testimony. Moves were also Walsh's tactic of exerting public political pressure on underfoot to grant immunity to Colonel North. Inouye and Rudman appears to be working: Following the During his recent visit to the United States, Israeli Prime release of the interim report, the two senators issued a joint Minister Yitzhak Shamir had offered a solemn promise of statement saying they were "not contemplating additional full disclosure and cooperation with the U. S. investigations. grants of immunity to other central figures." What Shamir's government delivered then was chicanery: Reliable sources report that Walsh is inthe rare position The Israeli representatives told the State Department that in Washington political life of having a vested interest in financial data and other material pertinent to the investiga­ probity and incorruptibility. According to this source, it is tions would be turnedover to the congressional committees clear that the Walsh investigation has taken on a life of its only if the United States stipulated a blanket, a priori guar­ own, and has the potential of bringing down the entire gov­ antee of immunity for all the Israeli citizens involved ernment-a fact that has terrified several members of the (Schwimmer, Nir, Nirnrodi, and Kimche, to name a few). In Reagan cabinet. addition, the Israelisdemanded veto power over what, if any, FBI Director William Webster, in a transaction designed parts of the material might become public. Then, according to obtain nomination as CIA director from the Senate Intel­ to the Washington Post, there was another Israeli condition: ligence Committee, consigned to the wolves his deputy, Oliver "They have also asked for an assurance that the committees B. "Buck" Revell, who is still hanging on as executive assis­ will not provide the material to independent counsel Law­ tant director and number two at the FBI-although not for rence E. Walsh ....A prime concern of the Israelis is that long. According to Webster's testimony, in April 1986, Oliv­ their citizens not face prosecution from Walsh. Walsh met er North called Revell to request a delay in a scheduled with Israeli Ambassador Meir Rosenne last week and said he appearance by Richard Miller before a Philadelphia grand would not be bound by any agreement that had been reached jury, in the case of one Mousalreza Zadeh, an Iranian posing with the congressional committees." as a Saudi prince accused of having defrauded a Philadelphia bank. Miller, as we have seen, is an object of renewed interest Walsh's interim report because of Channell's naming him as a co-conspirator. Re­ Walsh's response to the sabotage tactics coming from vell firstadmitted he had requested a delay of the grand jury Capitol Hill was contained in a unique document entitled appearance of the "prince," but then on April 17 changed his "Immunity and Prosecution: A First Interim Report." Here story to say that he had only asked aU. S. attorney forinfor­ Walsh answered his critics and indicated the broad outlines mation. of his probe. One striking aspect is the scope of the inquiry. Webster noted thatit was "highly unusual" for Revell to According to Walsh's report, "Ongoing investigations are attempt to delay a grand jury appearance. "He should have presently being conducted at the White House, the Office of consulted with me first," said Webster to the senators. "It's the Vice-President, the National Security Council, the Pres­ the kind of thing I expect to be advised of.... We 've had ident's Intelligence Oversight Board, Department of De­ discussions about it." Webster said that Revell's lapse was fense, Department of Justice, Departmentof State, Depart­ unprecedented in Webster's nine-yeartenure as FBI director, ment of Transportation, Department of the Treasury, and the and "clearly an oversight." Webster said that Revell "had lost Central Intelligence Agency. Requests for documents and some sleep" over the affair. Webster got the CIA post, but information have been addressed to thirteen foreign coun- Revell's prospects are bleak.

EIR May 8, 1987 National 53 The public health aspect of. this program was codified in the famous CaliforniaPropo sition 64ballot initiative. Today, six months after Proposition 64, more and more authorities admit that Lyndon LaRouche was right. Ever since we developedour advanced-science and pub­ lic health war plan to fight AIDS, we have been challenged NDPC tells Congress: in a constant fight bythose in the administration who believe AIDS that it is "cost-prohibitive" to fightAIDS . They have fought We need war on our campaigns because we represent the center of the fight against AIDS. Warren J. Hamerman, chairman o/ the National Democratic It is true that it will cost a ;lot of money to fight AIDS. Policy Committee, testified on April 30 be/ore the House AIDS will transform the world economy drastically. The Appropriations Subcommittee on Labor, Health and Human costs will be as high as Mount Everest. In a few years, we Services, and Education. Committee chairman Rep. William have calculated, the total budgetexpenditures to AIDS-relat­ H. Natcher (D-Ky.), and Representatives Louis Stokes (D­ ed areas of research, health (jare, and so forth may well Ohio), Joseph D. Earley (D-Mass.), John Porter (R-Ill.), surpassthe currentlevel of the defense budget. Furthermore, and Carl Pursell (R-Mich .) were present during the testi­ we must beginplanning now to llleet realeconomic costs that mony . Excerpts/ollow: may consume up to 20% of the national economy. Yet we have no choice but to meet those costs. All serious ...I wish to thank you, Mr. Chairman, for the opportunitY scientists admit that a vaccine or cure within the next 5-10 to testify. You stand in welcome contrast to those at the years is not probable. administration's Justice DepartIhent who have recently de­ We can tum this seeming economic crisis into its own nied Mr. Lyndon LaRouche and his associates their consti­ solution, if we invest in high science. Let me explain. tutional rights of freepress and speech, in large partbecause of Lyndon LaRouche's outspoken ideas on the need for a The frontiers of research full-scale global war on AIDS .... Standard molecular biology, genetic engineering, and Since the early months of 1985, we have warned that other mainline biomedical research methods, however im­ AIDS is a species-threatening disease, which is far deadlier pressive their rapid accumulation of basic facts about AIDS, than nuclear war. The pandemic threatens all of humanity have nonetheless proven scie ..tifically unable to meet the and is a threat to our national security. We have advocated formidablebiological challenge of this disease. These main­ and championed a three-fold policy to deal with this threat: line technologies and approacbes of the 1960s, 1970s, and Firstly, we need a Manhattan Project- or Apollo Program­ 1980s will soon be left in the dust, if we are to conquer AIDS . scope crash scientificresearch effort. We call this the Biolog­ We must tum to the 21st-century advanced areas of basic ical Strategic Defense Initiative or "B SOl , " because it is optical biophysics research, and spark the developmentof an based upon the mostadvanced 21st-century space-age meth­ entire new industry, the optical biophysics industry. . . . ods. We cannot fight AIDS with the biomedical equivalents In conclusion, let me emphasize that there are three and of bows and arrows. Our proposed "Manhattan Project" crash only three alternatives: Biological Strategic Defense Initiative against AIDS will not 1 ) We can continue the current pay as you die policy , only accelerate research in the traditional biomedical do­ which will either bankrupt or kill us, or both at once. mains. The BSDI global crash research effort, in order to 2) There will be a selected and limited policy-tilt toward conquer every potential scientific barrier in sufficient time, some testing, some public health, and a little more research must prioritize and massively upgrade research in the newer money. This approach will not win the war on AIDS. It and more advanced areas of optical biophysics. effectively amounts to the same thing as the firstapproa ch. Secondly, we must impose traditional public health mea­ 3) The only other alternative is the one of Lyndon La­ sures which have been historically proven to assist in slowing Rouche. We must embark on a full-scalecrash research and the spread of deadly diseases. These public health measures public health program. We can create the wealth necessary include: universal screening, contact tracing, isolation of to pay for the programby unleashing scientificdevelopment. those capable of infecting others from those not yet infected. Thisis theBiological SOl program. Thirdly, we must massively upgrade healthcare and pub­ We will not beable to defeatAIDS with bows and arrows, lic health programs. We need new state-of-the-art modem or their technological equivalents. Even the famous molec­ hospitals. We need completely upscaled sanitation programs. ular biology technologies of the 1960s, 1970s, and 1980s are We need a total plan for insect-eradication, especially in our not up to the challenge. We must advance the scientificfron­ nation's tropical and poor areas. We need new prison facili­ tiers through optical biophysics, if we want to win the war ties, and so forth . on AIDS ....

54 National EIR May 8, 1987 strategy toward AIDS, it falls far short of what is actually needed. What a competent program to combat AIDS would require , was presented to the the House subcommittee on Is the government labor, health and human services by National Democratic Policy Committee spokesman Warren Hamerman, who tes­ AIDS? tified the same day that Bennett spokes at Georgetown. (see about to act on article, opposite page) by Kathleen Klenetsky The debate Bennett's decision to go public with a policy which he After years of dithering, the Reagan administration finally has advocated privately for some time, is just one reflection appears to be taking some positive steps to deal with the of the raging debate now going in administration over what deadly challenge posed by the AIDS epidemic . to do about the AIDS epidemic . The New York Times reported The most significant indication that a shift in the admin­ April 26 that President Reagan will almost certainly approve istration's approach is in the works , came from Education the formation of a Presidential Commission on AIDS some­ Secretary William Bennett, who called for limited, manda­ time in May, and that one of the issues the commission will tory AIDS testing and contact tracing in a speech at George­ take up is mandatory testing. According to White House town University April 30. Bennett, who is the first cllbinet domestic policy adviser Gary Bauer, an ally of Bennett's, member to endorse mandatory testing for individuals other one of the chief motivating factors behind the decision is the than military recruits , said his principal goal is to force a "nightmarish" reports, coming out of the Centers for Disease debate on AIDS policy, both within the administration and Control and other scientificcenters , predicting the emergence in the nation at large . of new AIDS strains which will be much more easily trans­ "We have as solemn a responsibility to protect the unin­ missible. fected as we do to care for the afflicted," Bennett said, adding Bauer supports a bill which Rep. William Dannemeyer that the current "condom-mania" is just one indication that (R-Calif.) plans to introduce in early May mandating AIDS the United States has been "guilty of a number of . . . half­ testing for many of the same groups cited by Bennett. measures and evasions" on AIDS. "We need to begin to ask At a press conference following his speech yesterday, some hard questions and to debate some of the hard choices Bennett disclosed that the White House Domestic Policy surrounding AIDS-questions like whether mandatory test­ Council, to which he belongs, has been holding virtually non­ ing might be advisable under certain circumstances, whether stop meetings to debate a series of 40-50 options for dealing 'contact tracing' might not be ncecessary and whether or not with AIDS. Indicating that no consensus has been reached spouses or lovers have a right to be informed if their partner yet, Bennett said that he hoped his Georgetown speech "opens is found to be infected with AIDS. " the debate." The Health and Human Services department, as Bennett endorsed making AIDS testing a requirement for well as Surgeon General C. Everett Koop, are among the key hospital admissions; for patients at health clinics, particularly centers of opposition to mandatory testing. Bennett predicted those servicing high-risk populations; for those seeking ad­ that the Domestic Policy Council would be able to arrive at missions to the United States; and for marriage-license ap­ an agreement and present its recommendations to the Presi­ plicants. dent, in a month or so. In addition, Bennett said that contact-tracing, i.e., re­ It is still not clear in which direction the President is quiring that public health authorities and other medical offi­ leaning on the issues of mandatory testing and confidentiali­ cials notify previous and current sex partners of those who ty . Asked by EIR whether he had shown his speech to the test positive for AIDS, should be seriously considered, even President before giving it, Bennett replied that he had circu­ if this meant negating patient-doctor confidentiality. lated copies to the relevant people in the White House, and Bennett said that there are "strong arguments for consid­ that the reaction had been, "Good speech. Give it." ering superseding, in certain circumstances, the principle of Unfortunately, the President and the First Lady have cho­ confidentiality," in order to protect the public health. He sen to show their increased concernabout AIDS by attending pointed out that "confidentiality, even in the medical profes­ a gala AIDs flindraiser May 31, sponsored by the American sion, does not outweigh all other considerations," and that Medical Foundation on AIDS Research and hosted by fag­ the American Medical Association's Principles of Medical hag Elizabeth Taylor. Run by Dr. Mathilde Krim, and un­ Ethics recognize that a physician may reveal otherwise con­ derwritten by Krim's close friend, longtime Soviet agent fidentialinformation if this is necessary to protect the welfare Armand Hammer, AMFAR played an instrumental role in of another individual or the community." defeating Proposition 64, the California ballot initiative which While Bennett's call for mandatory testing is an impor­ sought to apply standard public health procedures to AIDS tant contribution to the development of a serious national last November.

EIR May 8, 1987 National 55 Elephants & Donkeys by Kathleen Klenetsky

cause the two campaign committees tempt to wreck the campaign from are separate entities. within. Hart issued a statement April 16 implying that the action was political­ AI Gore's campaign: ly motivated. At the end of April, Hart's cam­ crime and punishment paign manager, William Dixon, con­ Sen. Al Gore (D-Tenn.), who an­ finnedthat the Federal Election Com­ nounced his interest in the Democratic mission has gotten into the act against presidential nomination in early April, Hart. Dixon said that the FEC is prob­ is quickly iemerging as the fair-haired Hart gets the ing the 1984 campaign for possible wunderkind of liberal Democratic cir­ 'LaRouche treatment' election-law violations. The FEC, cles. Richard Gardner, fonner Carter which has come under repeated criti­ administration honcho, is just one of Sen. Gary Hart's presidential cam­ cism from disparate political quarters many well-placed Eastern Establish­ paign has been rocked by a series of for its unconstitutional activities, is ment types who is promoting the pret­ dirty tricks carried out by the political investigating charges that a Virginia ty boy from Tennessee for the Oval apparatus associated with fonner advertising company, Group III Com­ Office. Democratic National Committee munications, violated campaign fi­ Gore liasalso received the backing chainnanRobert Strauss and the Cart­ nance law by extending more than of Impac �8, a group of Democratic er-Mondale network which controls $400,000in credit to the Hart effort in Party moneybags organized by Wash­ the Democratic Party . 1984. The FEC is in the process of ington metro-area real-estate specu­ These are thesame networks which detenniningwhether this constitutes a lator N athllnLandow, a top fundraiser are tramplingover the rights of anoth­ corporate contribution. for Democratic Party and Jewish caus- er Democratic presidential candidate, In addition, the FEC is also look­ es. Lyndon H. LaRouche. While Hart's ing into whether the use of Hart's per­ Shortly after Gore announced, constitutional rights have not been vi­ sonal AMEX cardto cover $20,000of Landow held a press conference to olated to the same degree as those of campaign debt in 1984 violated fed­ pledge th�t he and 17 other members LaRouche and his supporters, the fact eral campaign laws. of Impac �8 plan to raise a whopping that his campaign is being targeted so While Hart and LaRouche differ $4 millio� for Gore's campaign cof- ' flagrantly, demonstrates just how far markedly on most major policy is­ fers . the "secret government"is prepared to sues, political and intelligence-com­ But Goremay be getting more than go to wipe out anyone considered to munity sources say that the same pow­ he bargained for: It turnsout that Lan­ be politically problematic. erful political faction which has been dow has a rather questionable past, The first major blow to Hart came tryingto shut LaRouche down, is also which includes dealings with reputed April 15, when federal marshals orchestrating the recent attacks on organized-crime figures. In 1978, walked into a campaign fundraiser in Hart. Hart has based his political strat­ when Landow was pressing the Carter Los Angeles, and seized approximate­ egy on running againstthe power-bro­ White House to name him ambassador ly $30,000 in contributions, to satisfy kers who currently control the Demo­ to Holland, the Washington Post re­ debt Hartincurred during his 1984 bid. cratic Party, notably including Texas ported he had hired an underworld fig­ The action was preceded by a massive wheeler-dealer Bob Strauss, who is ure as a consultant on a proposed At­ media campaign, focusing on Hart's also reputedly directing the operation lantic Cityhotel and casino. That killed financial difficulties, complete with against LaRouche. his ambassadorial ambitions, but, as a interviews with disgruntled contribu­ Ironically, Strauss recently vol­ booby prize, he was named a U.S. tors and creditors . unteered his services to Hart,pledging representative to the United Nations. The action was blatantly illegal. to help him retire his 1984 campaign Along with Gore's ties to long­ As Hart campaign spokesman Brian debt. But reliable sources tell EIR , that time Soviet agent Annand Hammer Sweeney noted, under U.S. election Strauss is the proverbial Trojan Horse, (Gore's father, fonner Sen. Al Gore, law, funds raised for Hart's 1988 cam­ and is offering his assistance merely sits on Occidental Petroleum's board), paign cannot be legally attached to pay to insinuate himself into Hart's inner the Landow connection could spell off debts from the 1984 campaign, be- circle, where he will proceed to at- trouble down the road.

56 National EIR May 8, 1987 Eye on Washington by Nicholas F. Benton

president of the Ad Council, and John campaign on behalf of a free press has Quinn, editor of USA Today newspa­ been developed to assist." per. Twenty journalists and three TV The chairman of the SPJ's legal crews made up the audience. defense fund , Peter Prichard, ap­ Following a presentation of the proached me right after the briefingfor newspaper, radio, and TV ads slated further information on the case. I was for their campaign, and a brief paean later told by a representative of Cam­ to a free press by Quinn (who referred paigner Publications, which pub­ to his own newspaper as "giving new lished New Solidarity, that Prichard depth to the meaning of shallow"), I told him the size of its legal defense asked Quinn to comment on a "real fund is very small, but asked to have case." I described how the U.S. At­ a formal request for a review of the Editor sees threat torneyHenry Hudson had gotten an ex case mailed to him. parte hearing before a bankruptcy The fact that the SPJ's legal de­ to freedom of press judge and an order for involuntary fense fund has only a few dollars in it The national president of the 25,000- bankruptcy against the publishers, is a clue that they haven't been con­ member Society of Professional Jour­ based on allegedly unpaid debts of the fronted with a serious fight to protect nalists went on record at a public press allegedly LaRouche-linked compa­ a free press in some time. conference here April 28 calling for nies to the government, which are in an independent investigation into the fact still under appeal in court. Visible decline charges that the government violated The result of the action, I noted, of a free press the First, Fourth, Fifth , and Sixth was the swift shut-down of the two Amendments to the Constitution in publications, despite the fact that there The freedom of the American press shutting down two pUblications be­ has not been a single conviction for a has eroded slowly but surely. Its most cause of their alleged links to Demo­ single criminal action with regard to evident form lies in the dramatic de­ cratic presidential candidate Lyndon anyone associated with the organiza­ cline in the number of daily newspa­ LaRouche. tions, or LaRouche himself, for that pers available to the public. Twenty­ Robert Wills, president of the So­ matter. The first move by the tempo­ five years ago, the average large ciety and editor of the Milwaukee Sen­ rary trustees assigned by the courts American city had three or four dail­ tinel, called for an investigation into was to order the immediate termina­ ies. Some had fiveor even six dailies. the circumstances surrounding the tion of the publications. Today, a city is lucky to have two. government's actions to force the pub­ Quinn could hardly brush off the Most, including the nation's capital lishers of New Solidarity, a twice­ question after the speech he had just (except for the limited-circulation weekly newspaper with a circulation given. He said, "I can only speak for Moonie paper), have only one. Most of 160,000 , and Fusion, a bi-monthly myself, but I think that an investiga­ of those monopoly papers, including scientific journal, into involuntary tion of this would be in order. As for those inthe thousands of smaller towns bankruptcy earlier in the month . a remedy, that would depend on the in America, are owned by a handful Wills was speaking at a press con­ outcome of an investigation." of chains. ference at the National Press Club on Wills interjected: "I can speak on This is no accident. The annual the subject of "the importance of a free behalf of the Society for Professional reports of the New York Council on press" when he was asked to comment Journalists, and say that I think this Foreign Relations, the armof the Brit­ on the government's actions by this should be investigated. We have a ish Round Table's efforts to "re-colo­ reporter. Freedom of Information Committee set nize" America, for years were ap­ The press conference was spon­ up for just such purposes and its chair­ pended with a detailed profileof every sored jointly by the Society for Profes­ man is in this room. We also have a daily newspaper in the United States, sional Journalistsand the Advertising legal defense fund." including the size of its circulation and Council, announcing a new national In a nervous attempt to get the sub­ its political persuasion. This profiling ad campaign on the importance of a ject of the press conference back on its was obviously for the purpose of free press in America. Present with original track, Keirn said, "It is cases eventually controlling this medium, Wills were Robert Keirn, national just such as this that our advertising and their success has been staggering.

EIR May 8, 1987 National 57 Fact sheet: actions against Lyn don LaRouche and associates

On April 28, attorneys for two companies operated by asso­ tions, Inc. (CPI), Caucus Distributors , Inc. (COl), and Fu­ ciates of Lyndon H. LaRouche, Jr. , and for numerous indi­ sion Energy Foundation, Inc . (FEFI), all organizations in­ viduals, filed two motions in Boston Federal District Court, volved in publishing, and identified with declared presiden­ one "To Stay Bankruptcy Proceedings or, in the Alternative, tial candidate Lyndon H. LaRouche, Jr. to Dismiss the Instant Case," the other "To Dismiss for Vio­ The order is issued in an unprecedented ex parte civil lation of the Sixth Amendment." proceeding, despite the fact that the organizations are in­ The "instant case" in question involves indictments ofthe volved in ongoing criminal proceedings in other jurisdic­ companies and various officers on charges like "obstruction tions, in relation to the same charges. The action is justified of justice," charges leveled when a Boston grand jury con­ by alleging "a danger that the property sought to be attached vened by William Weld, current Justice Department Crimi­ would be concealed, substantially impaired in value and oth­ nal Division head, was unable to come up with any evidence erwise made unavailable to levy . . . if issuance of the order of "credit card fraud" and other wild allegations concocted were delayed until the matter could be heard on notice." as part of a general witchhunt against LaRouche and organi­ The stated basis for the order is the corporations' alleged zations with which he is associated. A trial in that case is "debt" to the United States, in the total amount of scheduled for June 1. $16,635,000. This debt is the flneimposed in February 1987, Before the officers in question could come to trial , how­ by Judge David Mazzone, for ,icontempt" of the U.S. District ever, federal marshals on April 21 raided the premises of the Court for the District of Massachusetts in alleged obstruction companies, plus the unindicted Fusion Energy Foundation, of grand jury proceedings, an� is currently under appeal by and forced them into Chapter 7 involuntary bankruptcy on the corporations in the First Ci;rcuit Appellate Court, in Bos­ the basis of a "contempt of court" fine totaling over $16 ton, Massachusetts. million leveled by the judge in the case-a fine then and The United States Attorneyin Alexandria, Virginia, Hen­ currently under appeal ! Thus, the prosecutor of the criminal ry E. Hudson, tells the New York Times that this is the first case, the government, made itself a creditor of the defen­ time in history that the government has used this type of dants, obtained a bankruptcy order, and by that means, ap­ "collection" technique. pointed trustees under bankruptcy law, who now have total The order directs the interim trustees as follows: control of the companies and power to demand information 1) "obtain custody and control ofthe business and assets" relative to the criminal case from the defendants, in violation of the three corporations; of at least four Constitutional rights and all statutory prece­ 2) "operate the debtors' business as practicable but to dents. The motions filed, calling attention to this "whipsaw" terminate those activities of the debtors' employees which feature of the government's action, demand that either the the interim trustee believes eitber violate federal or state law, criminal case be thrown out or the bankruptcy proceeding or are likely to unreasonably increase the liabilities of their stayed; and that the criminal case be stayed because of clear respective debtors, or are unnecessary to the business oper­ violation of the defendants' right to due process. ations"; Additionally, attorneys for these organizations have filed 3) "take all necessary and prudent steps to preserve the a notice of appeal in U.S. bankruptcy court, charging viola­ assets of their respective debtors, preservation of assets hav­ tions of the First and Fifth Amendments. ing a higher priority than continued operation of the busi­ The following are the basic facts and their significance. ness"; 4) "stop the payment of all pre-petition debt except upon April 20, 1987. An Order Directing Appointment of Interim application to the Court." Trustees is secretly signed by United States Bankruptcy Judge April 21, 1987. Beginning at dawn, the offices of CPI, MartinV.B. Bostetter, in the United States Bankruptcy Court COl, and FEF in Leesburg, Virginia are seized, inventories for the Eastern District of Virginia, Alexandria Division . The made, and all personnel expell!!dby federal marshals, despite Order, sought by Unnited States AttorneyHenry E. Hudson, protests from attorneys representing the companies. Offices is based upon Chapter 7 of the federal bankruptcy code. It of COl in Palisades Park, N. J ., Boston, Chicago, Houston, places into involuntary bankruptcy Campaigner Publica- Los Angeles, and Seattle are also seized by federal marshals.

58 National EIR May 8, 1987 The marshals did not allow observers to remainin the offices • Fusion magazine, a national monthly science and tech­ when they conducted their inventory . nology journal, with 70,000 subscribers, published by Fu­ Also seized is the office of Eastern States Distributors in sion Energy Foundation, Inc . Philadelphia, despite the fact that ESD was not named on the • International Journal of Fusion Energy, a quarterly order and is an entirely separate corporation from CDI. science publication. Bank accounts owned by the corporations are frozen by • The publishing and distribution of dozens of books, order of the interim trustees. political pamphlets and fliers, devoted to the preservation of All publishing and distribution of printed materials by the the American System and the U.S. Constitution. corporations is effectively stopped. • The government actions have made it very difficultfor Daniel Alcorn, attorney forthe three organizationswhose Executive Intelligence Review, a national weekly news jour­ assets were seized, states that, since all three were involved nal, with over 10,000 subscribers, to continue to publish. in publishing, the governmentseizures represent a violation The government actions violate the First, Fourth, Fifth of the First Amendment: "This is a highly irregular, one-of­ and Sixth Amendments to the U. S. Constitution: a-kind procedure with frightening implications for the press." He also notes that "the government's failure to provide notice First Amendment or a hearing also infringedhis clients' rights to due process. " By shutting down two publications-New Solidarity April 22, 1987. A motion by defendant organizations, to newspaper and Fusion magazine-and severely hampering halt the seizures, is denied in the Alexandria, Virginia Bank­ a third-ExecutiveIntelligence Review magazine-the United ruptcy Court. Defendants announce plans to filean appeal to States government has silenced voices which have been in the U. S. District Court. the center of major policy controversies over the past decade April 24, 1987. The Washington offices of Executive and more. The seizure of their editorial offices, throwing Intelligence Review (EIR) are seized and shut by U.S. mar­ writers and editors out onto the street, and the impending shals. These offices are also shared with the Fusion Energy liquidation of the companies, constitutes the grossest typeof Foundation and the Schiller Institute, Inc. (SII), a philosoph­ "prior restraint"of publications-impermissible under a long ical association. The entire.EIR office is sealed, and entry is line of Supreme Court rulings over the past 50 years. prevented by federal marshals-despite the fact that EIR is not subject to the bankruptcy order. Fourth Amendment The Fourth Amendment prohibits"unreasonable search­ The effects of these actions es and seizures" and says that search and seizure, when per­ According to legal specialists, the action of the United mitted, must be particular and exacting; in this case the gov­ States Department of Justice, in throwing three LaRouche­ ernment has illegally seized offices and property not only of identified organizations into "involuntary bankruptcy" on the three organizations named-Campaigner Publications, April 20, was completely unprecedented, and represents such Caucus Distributors, and the Fusion Energy Foundation­ a fundamental invasion of constitutional rights that it is po­ but also offices and property of legally distinct corporations tentially fatal to constitutional rule in the U.S. such as that which publishes Executive Intelligence Review It is not just that the use of involuntary bankruptcy is magazine. unprecedented as an effort to collect a government fine, but that the procedure is being used against defendants who have Fifth Amendment been indicted and are awaiting trial in a criminal case. As (a) The FifthAmendment declares that no personshall be such, the procedure constitutes "execution before trial," in compelled to be a witness against himself. Yet the nature of that the defendant corporations will be liquidated before they a bankruptcy proceeding is such that officers and principals ever have an opportunity to go to trial and prove their inno­ of a "debtor" company must disclose information to thetrust­ cence. ees and the bankruptcy court. In this situation, when the The government actions shut down the following publi­ companies and many of their officers and employees are cations: under criminal indictments, most criminal attorneys will not • New Solidarity, a national newspaper published twice permit individuals to make any statements to government per week, with a circulationof 150,000copies for each issue, authorities. Such "failure to cooperate" ensures immediate and having 125,000 subscribers, published by Campaigner liquidation of the companies. Publications, Inc. (b) The Fifth Amendment also provides that no person • Four local newspapers, all inserts in New Solidarity: (which includes a corporation) shall be deprived of life, lib­ -Loudoun CountyNews (Virginia); erty, or property without due process of law. The involuntary -Illinois Tribunal bankruptcy petition was filed, and seizures ordered, in a -New Jersey Prosecutor secret, ex parte (only one side present) proceeding, in blatant -New England Spy violation of even the statutory requirement of notice and

EIR May 8, 1987 National 59 hearing. Offices were seized, employees thrown out, and grand jury investigation instig.ed by U. S. AttorneyWill iam corporations shut down, without any hearing or due process Weld, now head of the Criminal Division of the U.S. De­ whatsoever. The firstthat any of the companies or their law­ partment of Justice. While the iitdictment charges individuals yers knew of the proceedings was when federal marshals and corporations with $68,OOP in credit card "fraud," the appeared at 7:00 a.m. to seize and seal off their offices. indictment asserts that the charges are part of a "$1 ,000,000 nationwide fraud scheme," ot�rwise not elaborated. Sixth Amendment October 9, 1986. The United States argues that Jeffrey The Sixth Amendment, governingcriminal prosecutions, Steinberg, Michele Steinberg and Michael Billington, ar­ provides the following: rested in Virginia pursuant to the Boston indictment, should (a) The right to trial, and to trial by jury: Here, corpora­ be detained without bail for trial. No defendant has a previous tions which were indicted and awaiting trial, are now being criminal record. While bond is ultimately set for Billington, "executed" before trial. The involuntary bankruptcy petition Magistrate Harrison Grimsley finds that the Steinbergs should relies heavily upon the "criminal" nature of these companies, be detained until further findings by the U. S. District Court yet by the time they would have a chance to go to trial, defend in Massachusetts. Grimsley's �nding is based upon alleged themselves and prove their innocence, they will have been obstruction of the Boston granlJjury investigation-namely, liquidated in the bankruptcy proceeding. non-production of records to; that grand jury. FBI Agent (b) The right to confront witnesses: The ex parte, Star Richard Egan falsely testifiesbjefore Grimsley that no records Chamber nature of the seizure of the companies denied this of the corporate defendants in. Boston were produced to the fundamental right. Further, the justification for this ex parte grand jury. proceeding was other ex parte proceedings such as the issu­ October 20, 1986. Boston Magistrate Robert Collings ance of "Cease and Desist" orders by various state Securiti�s findsthat he cannot disturb the previousfinding of Magistrate Commissions and the ex parte attachment of the "PANIC" Grimsley regardingthe Stein�rg detention. FBI agent Rich­ (anti-AIDS Initiative) bank account in California last sum­ ard Egan retractshis previousitestimony regarding non-pro­ mer. Each StarChamber proceeding justifiesthe next one. duction of records, stating tha� he inadvertently "misspoke. " (c) The right to the assistance of counsel: In a bankruptcy The Steinbergs are detained i� Massachusetts while appeal proceeding, the lawyer for the debtor is obligated to provide proceedings are undertakenbefore Judge Keeton. The Stein­ information to the court, and can be ordered to waive the bergs are ultimately incarcerated for 40 days before the gov­ attorney-clientprivilege . When the debtor is simultaneously ernment accepts an arrangement allowing them to work as a defendant in a criminal proceeding, this creates an insur­ journalists in Leesburg during the day while staying in the mountable constitutional conflict. Loudoun County jail at night. A similar procedure is effected at this time for defendant Paul Goldstein, who was in France The background at the time of his indictment. Goldstein surrendered himself The April 20 actions follow a series of coordinated gov­ to Boston authorities following the completion of his assign­ ernmentacti ons, illegal jailings, and unconstitutional treat­ ment in France. ment of individuals and organizations associated with Lyn­ October 21, 1986. The United States gives notice of its don LaRouche nationwide, beginning with the October 6, intention to pursue civil contempt proceedings for non-pro­ 1986 action in Leesburg, Virginia. The following outline duction of documents to the I¥>ston grand jury before Judge describes this series of events. David Mazzone in Boston. The United States asks that two October 6, 1986. 400 federal and state law enforcement corporate criminal defendan�s in the Boston indictment, agents invade the small town of Leesburg, Virginia and con­ Campaigner Publications and;Caucus Distributors , be fined duct searches of two buildings housing the editorial and dis­ $5,000 ,000api ece, and that two non-defendants, the Nation­ tribution officesfor ExecutiveIntelligence Review magazine al Democratic Policy COIllIllittee and the Fusion Energy and New Solidarity newspaper, publications associated with Foundation, also be fined $5;000,000 apiece. The issue of Lyndon LaRouche. Helicopters and armored personnel car­ alleged non-production centen; completely on index cards of riers are employed in the search. Law enforcement authori­ their political supporters, maintained by fundraisers forCDI­ ties subsequently justify the force deployed on the raid with a legal issue which was apPealed, on First Amendment the theory that "armed resistance" might be encountered, grounds, to the U.S. Supreme Court. The Supreme Court despite the fact that individuals associated with the publica­ denied the,: petition for certiof:ari on January 27, 1987. The tions have no history of violence. On the afternoonof October corporate defenrumts seek a stay, citing the impossibility of 6, a federal criminal indictment is issued by a grand jury in defending themselves against,the civil proceeding when the Boston, Massachusetts, charging 11 individuals, two cor­ criminal indictmentcharges �m with conspiracy to obstruct porations, two campaign committees and a philosophical justice, based, in part, on alleged non-production of docu­ association with credit card fraud and conspiracy to obstruct ments to the grand jury. The NDPC, Campaigner and FEF justice. The indictments stem from a politically motivated demonstrate their complete compliance with the grand jury

60 National EIR May 8, 1987 subpoenas. indicted corporations in Virginia, before the State Corpora­ October 27, 1986. Boston defendant Michael Billington tion Commission, and vows that all "LaRouche activities" arrested in Leesburg, Virginia for selling unregistered secu­ will terminate immediately in the state. According to Terry, rities in Lawrence County, Missouri. Bail is set at $20,000 the alleged monetary frauds now involve a "30 million dollar and extradition is opposed on the grounds that Billington has nationwide scheme," which is otherwise not elaborated. While never been to the State of Missouri . Terry fails in her initial request for a TRO, the State Corpo­ November 19, 1986. California police raid and search ration Commission does finally issue a temporary cease and offices associated with the anti-AIDS ballot initiative Prop­ desist order in early March, covering the taking of loans by osition 64 in California, in Livermore and Los Angeles. The the corporations. However, the Corporation Commission investigation, by CaliforniaAttorney General Van De Kamp, notes that this is an "issue of firstimpression" and is extreme­ who had previously tried to deny the initiative ballot status, ly unclear and ambiguous in both state andfe deral law . centers on an alleged criminal "conspiracy" to bring out-of­ February 24, 1987. Judge David Mazzone issues partial state residents to Californiato circulate petitions for the ballot summary judgment contempt fines on behalf of the United initiative. The ballot initiative is publicly associated with States for $20,000,000 against NOPe, Caucus Distributors, Lyndon LaRouche. Campaigner Publicationsand the Fusion Energy Foundation. November 24, 1986. The Washington Post and the Lou­ Judge Mazzone's decision occurs while an appeal is pending doun Times-Mirror of Leesburg, Virginia report that a fed­ before the U. S. Court of Appeals for the First Circuit of his eral grand jury in Alexandria, Virginia has commenced an denial of a stay of the civil proceeding. Judge Mazzone was investigation into the taxes of Lyndon H. LaRouche, Jr. and not informed by the government that his contempt findings companies publicly associated with him. cover a period in which no grand jury was sitting on this December 16, 1986. Superseding indictment returned matterin Boston, a fact which was disclosed to the defense by federal grand jury in Boston naming three additional de­ during pre-trialproceedings on thecriminal indictment. Maz­ fendants: Edward Spannaus, the Treasurer of LaRouche's zone's findingsof contempt for failureto produce documents 1984 presidential campaign committee, Robert Greenberg to the grand jury extend to three organizations-the NOPe, and John Scialdone. The government moves for detention of the Fusion Energy Foundation and Campaigner Publica­ all three individuals, although none has a previous criminal tions-which the government concedes produced "truck­ history . FBI agents Richard Egan and U.S. Attorney John loads" of documents before the grand jury . Markham stipulate that there had been massive productionof Production of documents by these corporationswas never documents, contrary to their previous testimony. Following even an issue before Judge Mazzone. The defendants have a two-day detention hearing in Boston, Magistrate Robert moved for reconsideration before Mazzone and for an en­ Collings finds against the government detention request. largement of their appeal and stay application to the First Spannaus and Greenberg are releasedfrom ja il on December Circuit. 31 after posting bond. Collings also finally modifies deten­ March 17, 1987. Fifteen individuals publicly associated tion conditions for Jeff and Michele Steinbergand Paul Gold­ with Lyndon LaRouche, indicted on March 3 by a New York stein, allowing them to post bond. County grand jury, are arrested pursuant to an investigation January 16, 1986. Michael Billington is arrested again by New York Attorney General Robert Abrams. Abrams in Leesburg, Virginia following the signing of an extradition cites the same "$30,000,000 national scheme" unsubstan­ warrant to Missouri by GovernorBaliles of Virginia. No bail tiated figure, otherwise quoted by Virginia AttorneyGeneral conditions are available pursuant to an extradition warrant. Mary Sue Terry. New York originally requests $100,000 in The Loudoun County courts set an extradition hearing for bail per individual, pursuant to fugitive warrants-a request late February. Billington spends 25 days in jail and is finally which is rejected by judges in Virginia and New Jersey on released in early February Missouriwhen charges are dropped, March 17. However, in California, Mark Calney, a New following a monetary settlement with the complainant. York defendant, is detained on $500,000bail . In a bail hear­ Febmary 17, 1987. Indictments are returned by a Lou­ ing on March 18, Los Angeles Municipal CourtJudge Glen­ doun County, Virginia grand jury against 16 individuals and nette Blackwell imposes the $500,000 bail. Calney has no 5 corporations publicly associated with Lyndon LaRouche, previous criminal record and voluntarily surrendered to Cal­ for alleged securities fraud. The sole issue in the indictment ifornia authorities. Judge Blackwell sustains the outrageous is whether promissory notes, evidencing loans to political bail with the statement, "Counsel, in all candor, and let the committees and political publishers, are securities in the chips fall where they may, you know and I think the world Commonwealth of Virginia and whether, therefore , the in­ knows, apparently this is part of that Lyndon LaRouche na­ dividuals and corporations have unlawfully engaged in the tional and international investigation." She alleges that the sale of securities. Among those indicted is Michael Billing­ bail was requested by New York State Attorney General's ton. The Attorney General of the Commonwealth of Virgin­ office, an allegation subsequently denied by the New York ia, Mary Sue Terry, moves for an injunction to shut down the State attorney.

EIR May 8, 1987 National 61 Enemies of Constitution in �Justice Department 'kiss Moscow's rump'

by Jeffrey Steinberg

U.S. presidential candidate Lyndon H. LaRouche Jr. put it on his 1962 trial in absencia by a Soviet occupation court most bluntly in a campaign statement issued on April 27 whose jurisdiction in that nation the United States has never regarding the Karl Linnas deportation to the Soviet Union: recognized. In these matters! Soviet trials of Baltic patriots "The U.S. Justice Department has sent a former U.S. citizen, were among the most notorious frame-ups, such that no in­ Karl Linnas, to a death sentence in Russia, an action seen by trinsic merit could have been attached to the evidence or some around the world as the U. S. government's kissing the findings of such a trial. Furthermore, in some cases of this Soviet dictatorship's rump on Main Street, at high noon, for type earlier handled by the Justice Department's Office of all to see." Special Investigations (OSI), it has been proven that the Other internationalvoice s, including the London Express charges were based on false evidence willfully forged by the and the Times of London, have expressed similar shock and Soviet government. amazement at the behavior of the U. S. government in de­ "It is also known that not only is Neal Sher's OSI noto­ porting an American citizen, a refugee from Moscow's mas­ riously insensitive to the principle of due process of law in sive and unspeakable wartime and postwar crimes against such matters , but that Sher works with intemperate zeal in humanity in the Baltic states, to certain death at the hands of close cooperation with officialsand de facto agents of Soviet the Soviet government-simply on the basis of evidence and East German intelligence services, such as the VVN, in presented by the Russians themselves. targeting members of anti-Soviet U.S. associations for such LaRouche's statement continued: "In no partof this pro­ victimization ....To send Ii man to virtually certain death ceeding did the U.S. Department of Justice even claim to without due process, and sQlely on the basis of allegations have offered Karl Linnas due process of criminal law , in the from a source notorious for fClrged allegations, stinks to heav­ matter of charges merely alleged by a Moscow government en .... notorious for forging fraudulent evidence of this sort against "These disgraceful events occurred during a period that U.S. citizens whom Moscow happens to consider members elements of the U. S. government have shown extraordinary of U.S. anti-Soviet factions. zeal in seeking an early summit negotiation with the Soviet "It gets nastier as one goes deeper into the affair. secretary general, for the purpose of negotiating a proposed "Linnas's prior nationality, prior to his entry into the 'zero option' agreement which would virtually abandon U.S.A. was as a citizen of Estonia, a nation now under Soviet Western Europe to Soviet �ilitary superiority. This agree­ occupation. The U.S. governmenthas never recognized Es­ ment would give the U.S. governmentno compensating ad­ tonia as Soviet territory . Thus, the nation to which the United vantage, except to create a pretextfor slashing U. S. defense States might have deported Linnas, had there been cause to expenditures to levels prescrjbed by Gramm-Rudman. do so, no longer exists, and the United States recognizes no "Under those circumstaoces, many in the world.view the Soviet juridical authority over the territory or nationals of affair as the U.S. government's kissing Moscow's rump, at Estonia. There was no basis in policy under which the United high noon, on Main Street, for all the world to see. I regret States could have deported a former Estonian national into that I must agree with that view." the custody of the Soviet governmentor the satrapal govern­ ment of any Warsaw Pact entity. 72-hour pattern "The U.S. government chose to do so anyway, due pro­ As if to allay any doubts that the Justice Department had cess and policy be damned. acted with full consideration of the global political conse­ "The accusations against Linnas are purportedly based quences of its actions, over the 48-hour period following the

62 National EIR May 8, 1987 April 22 Linnas deportation, the same DOJ carried out its a Washington, D.C. reception for a visiting Soviet military unprecedented, unconstitutional raid and shutdown of two delegation led by General Milshtein on April 27. "Yes, this publications associated with candidate LaRouche: the 20- was a signal to the Russians. I have been promising them for year-old, 200,000circulation national newspaper New Soli­ months that Linnas would be delivered. I'm going to Moscow darity, and the mass circulation science journal and leading in two months. . . ." voice for the Strategic Defense Initiative, Fusion magazine. Gen. Mikhail Milshtein, an official of IMEMO and a And, as if those two actions were not enough to satisfy reportedhigh-level Soviet disinformation specialist, has been the Soviets' appetite for American groveling, on April 24, touring the United States for over a month. According to one AttorneyGeneral Edwin Meese personally attached his name source, Milshtein was in attendance at the San Francisco to an order barring Austrian President and former United Trilateral Commission session at the end of March. Milshtein Nations Secretary General Kurt Waldheim from entering the will remain in the United States until at least May 20, when United States as a private citizen on the grounds of his war­ he will attend a meeting of the Atlantic Council as part of a time Nazi activities. 10-personSoviet delegation that begins arriving in the United As in the Linnas case, the "file" on Waldheim was com­ States this week. Included in that delegation are Georgi Ar­ piled by the OSI, with liberal reliance on Soviet bloc docu­ batov, director oflMEMO, IMEMO deputy director Zurkin, mentation. and officialsof the Soviet foreign ministry, defense ministry, In the cases of Linnas and Waldheim, the Soviet author­ and economic ministry. Another leading IMEMO official, ship of the Justice Department's moves was direct and ex­ Henrik Trofemenko, has been in the United States since April plicit. The department's Office of Special Investigations 15. (OSI), under the direction of radical leftist Neal Sher, has Reached by phone at his New York hotel on April 30, been in official liaison with the Soviet justice ministry since General Milshtein told a caller, "Yes, the Linnas decision is its late 1970s creation during the Carteradministrati on. a positive step. How could the Soviet government, after all, Through OSI "consulting counsels," including Harvard negotiate in good faith with a U.S.A. government that al­ Law School professorAlan Dershowitz, ex-OSI director Alan lowed Nazis to remain unprosecuted in their country? The Ryan, also at Harvard Law, and Martin Mendelsohn, for­ Demjanjukdeportation to Israel in a similar way was a posi­ merly with OSI and now the head of a Holocaust Museum in tive move. And, yes, the LaRouche crackdown is also a good Washington, D.C., the Soviet government has been receiv­ signal ...." ing reassuring messages for months-that at the appropriate Picking up on the theme struck in the March 1987 issue opportune moment, Linnas' deportation order would be of the Soviet governmentjournal International Aff airs, Mil­ rammed through the Justice Department. shtein continued railing against LaRouche: "He is a reaction­ Dershowitz told a caller during the week of April 27 that ary, a slanderer. But you can't take LaRouche in isolation. the crucial first step in the Linnas and Waldheim cases was What he says about Marshal Ogarkov [Marshal Nikolai Ogar­ the forced resignation last year of White House Communi­ kov, the preeminent niilitary thinker in the Soviet Union cations director Pat Buchanan. Buchanan had been an out­ today and the author of the present Soviet war plan against spoken critic of the OSI, and particularly of the OSI's will­ theWest] is just crazy. But it's not just LaRouche. Others in ingness to deport American citizens without due process on the administration share his view about Ogarkov and the the basis of highly suspectSoviet manufactured "evidence." Soviet military." The more recent "opportunity," Dershowitz continued, One leading official of the American Jewish Committee came when AttorneyGeneral Edwin Meese's name surfaced described the pattern of recent Justice Department OSI-cen­ in the special prosecutor's investigation into the Bronx, New tered actionsas "a coup for Edgar Bronfman." The organized York defense contractorWedTech. Meese was grilled by the crime-tainted Canadian billionaire just returned from an ex­ FBI on April 28 on his possible role in arranging non-com­ tended negotiating trip to Moscow in time to launch a cam­ petitive contracts forthe Bronx company, in which he held paign to shut down all LaRouche-associated activities in Can­ blind trust investments. Although it appears thatMeese was ada. innocentof any wrongdoing, the media hypearound thecase As in the August-October 1986 period of pre-Reykjavik threwthe AttorneyGeneral onto the defensive. According to negotiations, the intensity of U.S.-Soviet back-channeling Dershowitz, DOJ officials Steven Trott and William Weld has been accompanied by revived Soviet media hysteria seized that opportune moment to force through both the against LaRouche and subsequent compliant U.S. Depart­ Waldheim and Linnas moves. ment of Justice illegal moves to shut down the LaRouche political movement in the United States. Serious patriots Soviet reconnaisance should view the current anti-LaRouche assault on the U.S. Other OSI linked figures went even furtherin confirming Constitution by the Trott-Weld crowd at DOJ as a unique theultimate Soviet authorship of themov es. MartinMendel­ opportunityto root out one of the most protected and deeply sohn told a caller on April 29 that he had personallyattended held secret nests of Soviet penetration into our government.

EIR May 8, 1987 National 63 �merican system

The fundraisers in the Revolution

by Anton Chaitkin

Part I of a new series on the real identity of the Founding We begin our historical inquiry during the Revolutionary Fathers. War. For the third time in threedecad es, Benjamin Franklin's organization had placed Pennsylvania in a state of military It is perhaps curiously appropriate that our corrupt financial readiness. The colonies had agreed to make Franklin's Phil­ system is facing a thunderous crash in this, the bicentennial adelphia the capital of their struggle for independence, and year of the United States Constitution. his old colleague from earlier military efforts, George Wash­ Reform of the system requires a returnto the principles ington, the commander-in-dhief. of the American Founding Fathers. Usury, narco-dollars, In December 1776, the Continental Congress received anarchic trade war, and depopulation must be replaced by word that British armed fortes were advancingon Philadel­ government-backedcommitments to productive credit, law­ phia. Congress fled to Baltimore, leaving merchant Robert ful trade in useful goods, and the technological development Morris in complete charge of executive government for the to support strong population growth. five-month-oldUnited States of America. The previous year, Marxists and criminal bankers alike have lied, however, Robert Morris had been a vice president of the provisional that the Constitution was written by "laissez-faire" irration­ military government of Pennsylvania (the Committee of alists; that the American Revolutionary leaders simply want­ Safety) under president Franklin. Morris was also chairman ed to license their own private gains by the governmentthey of the "Secret Committee" of the American Congress, re­ devised; that our political system is based on the moral out­ sponsible for procuring anus for the Revolution. Morris was look of "each against all ." now to have personal responsibility for managing the fi­ In this false historical frame of reference, there is no nances of the Revolution. alternative to the tyrannical controlof our economy by inter­ That same December, just before Christmas, Benjamin national banks. They say that the nation was founded and its Franklin arrived in Paris. From there Franklin would direct industries built by leaders who thought like David Rockefel­ American diplomacy and international fundraising for the ler and Don Regan, that the language of the Revolution­ Revolution. "all men are created equal" . . . "endowed by their Creator On Dec. 31, 1776, General Washington sent a messenger with certain inalienable rights" ..."we the people ...to to Robert Morris, requestmg $50,000 immediately. Wash­ provide for the common defense, promote the general wel­ ington needed money for an Intelligence Service. And his fare ...do ...establish this Constitution" -is misleading, troops, having surprised the British by crossing the Delaware and theConstitution should now be replaced by a more "up­ that frozen Christmas Eve, were nonetheless about to leave to-date" government, run more openly by these bankers. the army en masse unless they received some pay. In the present series of articles, we shall see how our Morris coaxed a loan for the whole sum from a Quaker actual Founding Fathers dealt with opponents like these, and acquaintance who, like most of his co-religionists, was any­ shaped a Constitution and an economic system in which the thing but a strong devotee of the patriot cause. The cash was sovereign power of a democratic republic could prevail against sent the next morning toGeneral Washington. the international, imperial, financialoligar chy. The American Revolutionary War effort was managed,

64 National EIR May 8, 1987 in practical fact, by these men-Washington, Franklin, and Morris. We here carefully note the names of their chief assis­ tants: General Washington's aide Alexander Hamilton; Franklin's confidentialsecretary and great nephew, Jonathan Williams, later the first Superintendant of the U.S. Military Academy; and Robert Morris's two closest co-workers in the Philadelphia financial office, Gouverneur Morris (no rela­ tion) and James Wilson. From that December of 1776, through the American vic­ tory at Yorktown in 1781, and past the Peace Treaty of 1783, Robert Morris and Benjamin Franklin corresponded often, sometimes more than daily, across the Atlantic. Morris, Gen­ eral Washington and a handful of Franklin-allied congress­ men met together regularly, as a de facto "executive com­ mittee." The chief problem they faced was that there was essen­ tially no money available to fightthe war, but money had to be gotten anyway. There were substantially no industries in America that could be taxed, as the British had in recent decades done what they could to prevent industrial development in the colonies. Franklin borrowed money in Europe, and Morris and Franklin frantically juggled transatlantic bank accounts. Morris was forced to use primarily private channels for do­ mestic loans and contributions to the patriot military forces. The most urgent task of the central, respOnsible Revolu­ tionary leadership, was to forge a single nation out of the Robert Morris of Pennsylvania. He was a signer of the thirteen revolting colonies, with a central authority that could Declaration of Independence, the Articles of Confederation, and financethe war for survival. the Constitution, and served as a senator in the First Congress. Without a strong central government,the American cause suffered badly. Exasperated by usury and war profiteering, and prodded by British agent-mob leaders, state legislatures Hamilton's proposal of an official Department of Fi­ passed laws to prohibit shipments of goods into other states, nance, with Morris as the Financier, was adopted by Con­ and to foreign countries, as a vain form of price control. In gress. July 1779, a Pennsylvania legislative committee tried to halt On May 17, 1781, in his first official act as Financier of the export of flour . to the fleet of our French allies; rioting the nation, Morris proposed to Congress a plan for a national mobs were whipped up against Robert Morris, and against bank, which Morris, Hamilton, and legal scholar James Wil­ James Wilson, the lawyer for the French in America. son had worked out together in the preceding months. In 1779 and 1780, the Congress emitted $203 million in The bank would help organize the desperate national unbacked currency, which sank in value as it was printed: finances by taking deposits, issuing respected bank notes, Sam Adams had to pay $400 for a hat in Boston. In lieu of and loaning funds to the government. In his explanatory taxes, Congress directly requisitioned supplies of grain, to­ letter, Morris proposed, "That it be recommended to the bacco, and clothes: pigeons and rats overran the grain ware­ several States . . . to provide that no other bank or bankers houses. shall be established or permitted within the said States, re­ In September 1780, Washington's intelligence coordi­ spectively,.during the war." nator Col. Alexander Hamilton called for the creation of an The Continental Congress voted to charter the Bank of actual national government with power to save the country, North America, headquartered in Philadelphia. Morris's in a letter circulated to men of influence through his friend business partnerThomas Willing was President; James Wil­ James Duane. "Without certain revenue, a governmentcan son was a board member and the Bank's attorney. The vote have no power. That power which holds the purse-strings on the Bank was recorded as follows: All Southern congress­ absolutely, must rule." Under the present, vulnerable sys­ men except one were in favor; Pennsylvania was split, one tem, Hamilton said, the "moneyed men have not an imme­ to one; both Massachusetts congressmen voted no; all others diate interest to uphold [public] credit. They may even, in voted yes. many ways, findit in their interest to undermine it." Curiously, Virginia's James Madison was the one South-

EIR May 8, 1987 National 65 em congressman to vote no on the Bank. Madison's mixed feelings about economic theory, as a patriot who was not in the center of the Revolutionary struggle, are seen by the fact that he supported Robert Morris's plan for a tariff on imports, though in the 1790s he was to oppose both tariffs and a national bank as "usurpations." Twentieth-century historians, anxious to eradicate the memory of the Founding Fathers' fight for national sover­ eignty, have elevated James Madison into the "Father of the Constitution"-falsely, as we shall see. In this way, Madi­ son's later "free trade" attacks on President Washington and Treasury Secretary Hamilton, outrageously enough, are giv­ en patriotic status in opposition to "governmentmeddling ," i.e., American government support for American national economic development.

The Bank of North America Unfortunately for the patriots' exasperated efforts, the wartime tariff plan never made it through Congress. The Bank of North America, however, was established early in 1782, and began repairing the horrible financialcrisis of the new U.S.A. It lent $100,000 to the United States less than two weeks after opening its doors . By expanding available credit, the Bank was able to com­ bat usury, forcing down interest rates that had gone as high as two and one-half per cent per month . When demagogues in the Pennsylvania legislature attacked the Bank of North America, Franklin and Washington's favorite "left-winger" Thomas Paine counterattacked with a book, "Considerations on Government," which pointed out that these "democratic" critics were fronting for moneyed interests jealous of the people's new power over the usurers . Before the Bank began functioning, Franklin's Pennsyl­ vania machine saw the army through by the skin of its teeth. The wives of Robert Morris, James Wilson, and Charles Thomson (permanent secretary of the Continental Congress and former second-in-command of Franklin's secret organi­ zation, the Junto) often bravely toured the streets and the taverns of Philadelphia together, fundraising for the Army. Mrs . Wilson alone is credited with having raised $62,000 . Robert Morris visited General Washington in camp dur­ ing August 1781, to plan the campaign that was to win the war. Morris promised to finance a drive into Virginia, and Washington agreed to undertake it. Some of the gold came on loan from France, some from Morris's private sources. Every phase of the march toward Yorktown was supplied by minute-to-minute planning out of Philadelphia. The same kind of close, tactical coordination among the "executive committee" would be necessary to write the fed­ . eral Constitution and bring about its ratificationby the states, . . . o Make check mo,neyf order payable as we will see in our next installment. Franklin's allies were or to: ElK New. Service to prove that a free people can govern themselves, and need P.O. Box 17390 not be slaves of international finance. But these Founding Washington. D.�. Fathers would be forced to give their lives, aft er the Revolu­ tion, in the vicious political war with the Tory oligarchy.

66 National EIR May 8, 1987 shift things in that direction anyway. For example, he pro­ poses to make the procedures for impeaching and convicting Book Review public officials "easier and speedier." "Should we," he writes, "substitute a congressional vote of no confidence for the impeachment of the President, leading to mandatory resig­ nation?" In other words, the parliamentary procedure. Aristotle versus Other suggestions include: abolishing the Electoral Col­ lege; limiting the President to a six-year term; creating ex­ the Constitution ecutive vice presidents (making the presidency a ceremonial post); creating a public prosecutor's office forthe prosecution by Kathleen Klenetsky of public officials suspected of unconstitutional acts; etc. Adler gives his game away in his opening chapter, when, citing Aristotle, he asserts that Solon and Lycurgus were the first to have founded states, because they drafted constitu­ tions for Athens and Sparta, respectively. He makes no dis­ We Hold These Truths tinction between Solon's conception of a republic-that the by Mortimer Adler state should fo ster the individual's ability to pursue the good­ Foreword by Harry A. Blackmun and Lycurgus' bestial view, that the individual exists to serve 1987, Macmillan Publishing Co., New York an oligarchical elite . $16.95, 278 pp. His failure to distinguish between these completely anti­ thetical views of human nature, permeates the entire book, and leads him inexorably to his wrongheaded assertionthat, Publishers across America are churningout a stream of books of life, liberty , and the pursuit of happiness, the supreme this year, which purportedly honor the Bicentennial of the right acknowledged by the Constitution is the last. Although Constitution. Unfortunately, with few exceptions, most such Adler hastens to assure his readers that he does not interpret offerings are backhanded assaults against the document which the pursuit of happiness phrase to condone the pursuit of they allegedly celebrate. whatever hedonistic pleasures an individual might desire, he A case in point is Mortimer Adler's. He claims it to be a belies this claim by arguing against the Supreme Court's 1986 guide to "Understanding the Ideas and Ideals of the Consti­ decision upholding a Georgia law against sodomy. tution." (Publisher Macmillan is the same that brought out Calling this decision "fundamentally wrong," Adler pro­ Charles Beard's 1913 diatribe, An Economic Interpretation ceeds to apply a libertarian interpretation to the Constitution. of the Constitution.) Not only does Adler call for fundamental Adler writes that, "Restraints imposed on individual freedom changes in the Constitution, akin to those advocated by Tri­ can be justified on no other ground than the prevention of lateraloid Lloyd Cutler and his Committee on the Constitu­ injury to others or to the public good," and adds: "Laws that tional System; he subjects the Constitution to a thoroughly attempt to restrain individuals from committing sexual acts

Aristotelian distortion. that are deemed reprehensible either because they are sins in A popularizer of Aristotle, Adler has long been tied to violation of the divine law or acts of vice in violation of the the Aspen Institute for Humanistic Studies. Among other moral law fail to distinguish the proper sphere of man-made things, Aspen ran the successful anti-nuclear propaganda or civil law from that of divine and moral law." effort, and, more recently, sponsored a project to "decouple" This idea, also known as the "victimless crime" argu­ the NATO alliance. Adler notes in his firstchapter that much ment, is not only specious, but immoral. Can Adler claim of his book derives from a week-long seminar he gave at that someone who uses drugs, doesn't inflict harm on the Aspen in 1975 . public good? Or that the wildfire spread of homosexuality in Adler insists that radical changes be made in the Consti­ the United States, with the concomitant rise of the deadly tution to bring it "up to date ." This " 18th-century" document, disease AIDS, doesn't imperil the entire human species? he writes, "must be measured against the conditions and Although Adler's book is boring-Aristotelianism circumstances of the time in which [its drafters] were liv­ again-it will no doubt be widely read, partlybecause As­ ing. . . . There is only one way in which we can soberly sociate Justice Harry A. Blackmun, one of the most liberal assess how to give life to their ideas and how to realize the members of the Supreme Court, wrote the foreword. Black­ ideals they had in mind. To accomplish that, we must rec­ mun-who authored the dissenting opinon to the Court's ognize the defects in the Constitution they delivered to us ruling in the Georgia sodomy case-calls the book "needed

who are alive many generations later [emphasis added] ." and timely," says that "one has nothing less than a duty to Adler suggests a slew of remedies in his chapter, "What read" it, and writes approvh:gly that Adler "reminds us that Remains to Be Done." Lamenting that Americans "are not [the COtlstitution] is not perfect and thus falls shortof attain­

willing" to accept a parliamentary system, he proposes to ing the ideal of democracy for which we strive ...."

EIR May 8, 1987 National 67 Congressional Closeup by Ronald Kokinda

Fight expected over sure the White House will bring to failed to derail the proposal by a 50 to raising debt ceiling bear to line up Republican votes be­ 49 vote , with four Democrats joining A major battle is shaping up over de­ hind the measure, and whether the all Republicans with the exception of mands to raise the national debt ceil­ White House will fight to dampen the Senator Lowell Weicker (R-Conn.). Gramm-Rudman-Hollings initiative. ing, this time by May 15, in order to "1 think this budget turns its back allow the Treasury and U.S. govern­ Gould stated, "We do not supportadd­ on defense," said ranking Budget ment to continue to borrow to finance ing provisions that could imperil Committee Republican Sen. Pete Do­ the federal budget deficit. prompt passage of this urgently need­ menici (N.M.). "It will take us back Whether enacted by Congress by ed debt extension." Before the hear­ to the days when we had a hollow the deadline or not, the fact that this ing, Rostenkowski's staff said that Army and ships that couldn't sail." political brawl will be taking place in there had been no indication yet of The action on the budget flew in thecontext of worsening international White House intent, and many mem­ the face of the Senate Armed Services economic conditions, can only accel­ bers remained uncertain of whether Committee, which is reportedly pre­ erate a financial blowout. If rejected, they will fight to bypass the Gramm­ paring $303 billion in defense spend­ the U.S. government will default on Rudman debate. ing authorization , including $4 .5 bil­ its debt obligations, setting the stage lion . for the Strategic Defense Initia­ for either a recovery policy, or a deep­ tive, behind closed doors. Senate Re­ er depression. publicans are still hoping to win over The biggest part of the controver­ Defense hit in Senate enough Democrats to get more for de­ sy will revolve around a replay of the Democratic budget fense, which would mitigate what western state senators charge is a bias Gramm-Rudman-Hollings balanced The firstindication that the Democrat­ budget fight. Senate backers of this ic-controlled Senate will slash the de­ againsttheir region of the country. law will attempt once again to rein­ fense budget even more harshly than As a House delegation led by state the automatic budget-cutting the Republicans have for six years , Speaker Jim Wright (D-Texas) re­ provisions of the law , but changing came as the Senate took up consider­ turned from Moscow singing the the procedure of the automatic cuts so ation of the budget proposed by the praises of Gorbachov, the House con­ as to overcome Supreme Court objec­ Senate Budget Committee, chaired by tinued slashing defense by passing tions to the previous mechanism. Sen. Lawton Chiles (D-Fla.). H.R. 1827, making supplemental ap­ In the House, there is no guarantee The Democratic proposal is a $1 propriations for FY87 on April 24 by that a rise in the debt ceiling could be trillion FY88 budget, which includes a vote of 208 to 178. It mandated the passed. $11.5 billion in new taxes, and leaves President to stay within the SALT II The Reagan administration, ner­ a deficitof $108 billion, using Reagan arms-control limits , and prevented vous about the difficulty , has asked administration budget assumptions, nucleartests over one kiloton in yields, Congress to expedite action. The and $134 billion using Congressional provided the Soviets do the same . House Ways and Means Committee, Budget Office assumptions. New de­ chaired by Rep. Dan Rostenkowski fense authorization is set at $289 bil­ (D-lll.), which has jurisdiction, held lion, a sum which does not even cover a hearing on April 30 with Treasury inflation. "In the real world, if you're Symms proposes Soviet Undersecretary George Gould as a going to have deficit reduction, you eviction from embassy . witness. "The expiration of the tem­ have to reducesomething ," Chilessaid Sen. Steve Symms (R-Idaho) intro­ porarydebt ceiling triggers disruption in defending the proposal. duced Senate Joint Resolution 120 on of Treasury financing immediately and Opponents failed to derail the April30, to force the Soviets to vacate a subsequent cash default on May 28, budget by a vote of 50 to 46 on April their new embassy grounds in Wash­ in the absence of new debt limit leg­ 29, losing an effort to force the budget ington, D.C. islation," Gould warned. to stick within Gramm-Rudman The resolution, which has the One of the questions Rostenkows­ guidelines, using the less favorable binding force of law, directs the Pres­ ki wants answered is how much pres- economic assumptions. They then ident "to void the embassy agreements

68 National EIR May 8, 1987 signed in 1969 and 1972 which al­ dling of the embassy construction in that there is the potential of insect lowed the Soviet Union to construct a Moscow, after the State Department transmission, and that if the virus mu­ new embassy at Mt. Alto, approxi­ was found to be withholding docu­ tates like the bubonic plague once did, mately 350 feet above mean sea level ments promised. Foggy Bottom called it could be transmitted by respiratory and the second-highest land site in the subpoena "outrageous," and com­ secretions and coughing. D.C.," Symms said. It would also di­ pliance is in doubt. Burton urged quick action on his rect the President to negotiate a new bill to get univeral testing underway. embassy site "not more than 90 feet "The entirehuman race is at risk with above mean sea level (approximately this disease if we do not get on with" the elevation of the U. S. Capitol.)" Burton: 400,000 are measures to contain its spread. At a press conference the day be­ already dying of AIDS fore atop a hotel across the street from Rep. Dan Burton (R-Ind.), who has the new embassy, Symms and a se­ introduced legislation for annual, na­ curity specialist in electronic surveil­ tional mandatory screening of the Gephardt amendment lance pointed out that the "line of sight American population for the AIDS vi­ approved for trade bill access" which the site provides would rus, spoke on the floor of the House The Gephardt amendment to the trade allow the Soviets "interception of any April 29 to warn that there are not bill, H.R. 3, which would require U.S. electronic signal generated either by a 40,000 people dying of AIDS in the retaliation against nations that refuse bona fidetra nsmission or by a second­ United States, as is claimed by the to reduce their trade surpluses with the ary transmission," e.g., typewriters, Atlanta Centers for Disease Control, United States, passed the House by a computers, telephones. but 400,000. razor-thin vote of 218 to 214 on April Senate Majority Leader Robert "When you get the AIDS virus, it 29. Byrd (D-W.V.) praised the bill and gets into your system and it gets into The amendment, sponsored by asked to be added as a cosponsor, rais­ all your body fluids, your spinal fluids, Rep. Richard Gephardt (D-Mo.), ing hopes that the Senate might be able and brain fluids. It immediately starts w9uld mandate 10% annual reduc­ to act early in May. destroying your brain tissues," Burton tions in the trade surplus of foreign The initiative came as the Senate said. People "are suffering from brain nations, if the President failed to ne­ Intelligence Committee unanimously deterioration that is believed to be re­ gotiate such reductions after 18 recommended that the U. S. embassy lated to the AIDS-related complex months, and dollar for dollar retalia­ building in Moscow be demolished and (ARC), 10 times as many people as tion against nations which refuse to rebuilt, because it would likely never have full-blown AIDS have this men­ remove their trade barriers to U. S. be made secure against Soviet espio­ tal disorder or deterioration taking products. To abrogate the reductions, nage. The committee said it might take place as a result of the AIDS virus, the President would have to declare it two to fiveyears just to assess the ex­ which means we do not have 40,000 a matter of vital national economic in­ tent to which the building is compro­ people dying from AIDS; we probably terest. mised. The committee also said that have 400,000 dying from AIDS right Although it would affect trade with the Soviet leadership should be noti­ now, because of the brain disease kill­ West Germany, Taiwan, South Ko­ fiedof aU. S. intention to "negotiate a ing these people. It does not manifest rea, Italy, and Brazil, the amendment new set of constructionagreements that itself as full-blown AIDS; it just caus­ is especially aimed at Japan, and was meet our security requirements," and es deteriorationof the brain, until they passed just as Japanese Prime Minis­ thatthe Soviets should leave theirem­ die or become mentally disabled, and ter Nakasone arrived on a visit to the bassy in D. C. until the issues are re­ it ultimately leads to complete dys­ United States. solved. function and death." It is doubtful that the provision will The House International Opera­ Burton presented extensive refer­ make its way into final legislation, as tions Subcommittee meanwhile voted ences from medical professionals to the Senate is strongly opposed, and on April 28 to subpoena State Depart­ debunk the assertion that AIDS could the White House holds the threat of a ment communications regarding han- not be casually transmitted. He wamed veto.

EIR May 8, 1987 National 69 NationalNews

top, the FBI could easily revert to the worst according to the May I Atlanta C onstitu­ abuses of its past. " tion, the DNC "decided to study ways to Many congressional observers believe prevent infiltration of the party by the Lyn­ Panel asks AIDS that the FBI has changed little since Hoo­ don H. �ouche cult, and to seek ways to ver"s time, says Ungar, who quotes one Sen­ prevent LaRouche candidates from running emergency in California ate aide: "Few people understand the bu­ as Demol:rats . " reaucratic nightmare that can still be the The PNC wrapped up its semi-annual According to an article in the May I Los Angeles Times, a panel of five AIDSexperts FBI." meeting in Sante Fe divided and dissatisfied has asked California Gov. George Deuk­ aboutthe fieldof candidates. "Some people mejian to declare a state of public emergen­ are wrin,ing their hands and saying 'I think cy in response to the AIDS epidemic . but we're going to win in 1988, but l don't know about these guys' " said DNC chairman Paul the recommendations, contained in a 75- Kirk, Jr. page report, were turned down by Deuk � mej ian as too expensive. U.S. 'Greens' revive The five exper ts, including Dr. James Chin andDr . Donald Francis, who only last witchcraft cults People calling themselves "ecofeminists" November testified against Proposition 64 that would have instituted public health. held a coven in Los Angeles in early April measures against AIDS , are now calling for to create a movement merging witchcraft mass testing at all sexually transmitted dis­ and "Great Goddess" cults with the inter­ Hun�ngton rejected by ease clinics, family planning clinics, and for national "peace" and environmentalist all marriage licenses and all pregnancies. movements. Academyof Sciences They also want an expansion of test fa­ Speakers included Paula Bradish, sci­ The National Academy of Sciences rejected cilities, and the creation of regional treat­ ence adviser to the parliamentary delegation the nomination to the academy of Prof. ment and evaluation centers to care for pa­ of the West German Green Party; Charlene Samuel lP. Huntington on April 28. Hun­ tients from "diagnosis to death." Spretnak, author of a book on building a tington i5 a member of the Trilateral Com­ Francis and Chin authored a recent arti­ Green movement in the United States; sev­ mission, and author of its notorious 1975 cle in the Journal of the American Medical eral avowedwitch es, including "Starhawk"; report, The Crisis of Democracy . That re­ Association, calling for mass testing, con­ and representatives of Green-type forma­ port proPosed the institution of what some tact tracing, and restraining the activity of tions in England, the United States, and have called "fascism with a human face ," in irresponsible AIDS carriers, all of which elsewhere. order to: get David Rockefeller's banking they explicitly opposedin testimony against The major theme of the meeting was the friends through the financial and political need to eliminate science and technology in crises of1 the 1980s. Proposition64 last fall. order to appease the Earth Goddess. The :attack on Huntington was led by U.S. Greens are sponsoring an interna­ Serge Lang, a Yale mathematician, who has tional gathering of Greens from July 2-7 in gathere4 and sent to all academy members Amherst, Massachusetts. "a ton of documentation" challenging Hun­ tington'S scholarly work as "pseudo-sci­ Opposition to FBI ence" and "nonsense." Lang debunked Huntington's use of mathematical confirmation voiced equations as "a typeof language which gives the illu­ Congress should not confirma new FBI chief sion of science without any of its sub­ withouttaking a "hard-nosed look inside the DNC meets to stance.'1 Bureau," said American University Dean He added that Huntington had passed off Sanford Ungar in a Baltimore Sun op-ed 'stop LaRouche' political opinion as if it were science. April 28. Former party chairmanRobert Strauss con­ Dr. pdward Anders, professor of chem­ Despite the new image instituted by vened a meeting of theDemocratic National istry at the University of Chicago, said, "I William Webster, "the ghost of J. Edgar Committee and the Anti-Defamation League have repeatedly had misgivings about some Hoover still stalks" the FBI's corridors. The in New Mexico the evening of April 30 to of the candidates in social and political sci­ bureau's budget "is virtually out of control lay out a strategy to "stop" presidential can­ ences ....My suspicions have been amply again, and some of the rigorous standards didate Lyndon H. LaRouche in the imme­ confirmed by the Huntington debacle. Any instituted in the late 1970s to govern inves­ diate future, reliable sources report. section that nominates poorly qualified can­ tigations of alleged subversives . . . have The meeting took place at the end of a didates lacks either good candidates or good begun to slip. With the wrong person at the two-day DNC confab in Santa Fe, where, judgmep.t."

70 National ElK May 8, 1987 Briefly

• STEPHEN TROTT, the associ­ ate attorneygeneral , is expectedto be Hansen be sent back to prison until at least nominated soon to a federal judge­ Nov. 5. His decision will be circulated ship in San Francisco, reported the among the other commissioners on the nine­ April 30 Washington Post, citing Justice Dept. looks member boarduntil three of them concur. administration sources. Trott, who has come under firein the Iran-Contra into Hansen case affair, is said to have already decided A Justice Department inquiry into the arrest to seek the judicial nomination. "One and reimprisonment of former Rep. George strong candidate" to replacehim, says Hansen (R-Idaho) for alleged parole viola­ the Post, "is Assistant AttorneyGen­ tions has been launched by Attorney Gen­ eral William F. Weld." eral Edwin Meese, reported the Washington Brzezinski calls for EIR NATIONAL NEWS, Post April 27 . Responding to concerns • a new voiced by Republican members of Con­ 'merger' with Japan newspaper, hit the streets in 100,000 gress, Deputy Attorney General William Zbigniew Brzezinski, former director of the copies at the end of April. EIR's pub­ Landers met with Hansen and his lawyers Trilateral Commission, has come up with a lishers made the decision to issue the April 27 , to hearcomplaints by Hansen about new scheme to destroy the sovereign nation­ weekly paper after the U.S. Justice his treatment since his arrest. state . In an op-ed in the April 28 New York Department shut down New Solidar­ Hansen was released from prison after Times he proposed that the Japanese econ­ ity newspaperon April 21. serving six months of a 15-month prison omy be gobbled up by America's bankrupt sentence and paying a $40,000fine for filing banking establishment as a means of surviv­ • NATIONAL JEWISH Coali­ incomplete financial disclosure reports as a ing the coming blowout. tion leaders numbering some 150, House member-the same charge that was The way Brzezinski put it: Create an featuring "Dope, Inc. 's" Max Fisher, not pursued in the case of mafia-linkedGer­ informal U.S.-Japanese structure, dubbed met with Bob Dole, George Bush, aldine Ferraro . Hansen was arrested and "Amerippon," to combat the world financial Jack Kemp, Al Haig, and Pat Rob­ reimprisoned April 15 on charges that he crisis. ertson, all GOP presidential hope­ had violated his parole by traveling outside "If history is any guide, there can only fuls, in Washington at the end of of the Washington, D.C. area and had failed bethree outcomes to the emerging financial April. to report details of his monthly income and dilemma: war, bankruptcyor inflation.... activities. At press deadline, he was still They can be avoided only if America and • A FUNDRAISER for Carl beingheld in the Alexandria city jail, and is Japan realize that each needs the other, that "Spitz" Channell disclosed on May I carrying out a hunger-strike to protest his the economy of each is becoming comple­ that Channell was an admirerof Adolf treatmentand apalling prison conditions. mentary to the other, and act accordingly. Hitler. Jane McLaughlin told ABC The Justice Department inquiry grew out "In effect, a new global bargain is need­ News that Channell "had a lot of of a meeting April 26 between 25 Republi­ ed, one that creates the preconditions for an complimentary things to say about can legislators and Assistant AttorneyGen­ ever closer American-Japanese relation� Hitler." He also "used to make fun" eral John Bolton. ship. Japan needs the American market and of people who contributed to his op­ At the meeting, which took place in the it also needs American security protec­ eration-"especiallythe women." office of Minority Whip Trent Lott (R­ tion ....Meanwhile , America needs ac­ Miss.). Rep. Dan Burton (R-Ind.) said the cess to the Japanese markets, Japanese in­ • THE WASIDNGTON POST purpose of the meeting was to see that Han­ vestment, and Japanese cooperation in stim­ reports that things are becoming sen received "fair treatment from the sys­ ulating global economic growth, in terms of "topsy-turvy" in the U.S. govern­ tem ....A lot of us knew George when he both development and financial stabili­ ment's prosecution of companies as­ was in Congress ....The fellow is not a ty .... sociatedwith Lyndon LaRouche. "It's murderer; he's not a drug dealer. " "Both America and Japan can thus ben­ U.S. v. U. S. in LaRouche Bankrupt­ Hansen was rearrested without a war­ efit from closer co-mingling of their busi­ cy Case" was the headline of a May rant; was listed under an alias when he was ness and financial institutions. Joint enter­ 2 article, which points out that the bookedin Alexandria jail; was put in leg and prises, increased cross-presence of Ameri­ governmenthas placed in bankruptcy waist irons, etc . cans and Japanese on various boards of di­ companies which it is charging with "They're treating him like he was 'Ma­ rectors . . . all can foster a shared perspec­ criminal violations in another juris­ chine Gun Kelly,' rather than someone tive on global issues ....The appearance diction. This "legally odd predica­ ment" would allow the government charged with a white-collarcrime," said Sen. of a new though informal constellation­ Steve Symms of Idaho. 'Amerippon'-could provide new leader­ trustee to decide whether to fire the A U.S. ParoleCommission hearing ex­ ship and stability to the global economic defendants' lawyers and plead gUilty. aminer subsequently recommended that system."

EIR May 8, 1987 National 71 Editorial

EIR versus Project Democracy

This week, the u.S. public will be treated to a television On April 9, EIR issued its devastating 34 1 -page extravaganza, sponsored by the Senate select commit­ Sp ecial Report titled "Project Democracy: the 'parallel tee investigating Irangate . The average , impressiona­ government' behind the Iran-Contra affair." In it, we ble TV viewer, will get quite an education from those proved that the National Security Council apparatus Senate hearings. Confessions of varying degrees of ac­ had been taken over by a' secret and illegal "parallel curacy, revelations of hitherto dark secrets of state , government," associated with "Project Democracy" or high drama performed by obscure public servants like the National Endowment for Democracy. This Project General Secord or glamorous ones like Colonel North , Democracy, we argued, had infiltrated both the De­ day after day, on millions of living-room screens, will mocractic and Republical National Committees, under unravel the story of a runaway secret government, Paul Kirk and Frank Fahrenkopf, respectively , and stealing money, arming enemies of the U. S .A., break­ through such operatives as Richard Miller and Francis ing laws, violating the Constitution, murdering people , Gomez, was facilitating the illegal operations of Lt. protecting murderers , lying-all in the name of the Col. Oliver North and his collaborator, Oliver "Buck" American people . Revell of the FBI. As thenation will be vicariously watching this mod­ On April 21, these traitors of the Justice Depart­ em version of Macbeth, only a few will know , that EIR ment, shut down the offices of the EIR . and its political friends are the moving force behind the On April 27, special prosecutor Lawrence Walsh avalanche of revelations . We can justifiably claim that indicted NSC-operative Carl "Spitz" Channel, and on we and our political friends launched "Irangate" back the same day , Channel named Richard Miller, "Buck" in 1979, with what became known as the "Cyrus Hash­ Revell and Ollie North 's protege, as a co-conspirator. emi case." Richard Miller is paid by the National Endowment for Over a period of years , officials of the Department Democracy, co-chaired by Fahrenkopf of the RNC and of Justice (pardonthe expression) , have tried to silence Charles Manatt of the ONe . us, by a varietyof means at their disposal. Such officials On April 28, Fahrenkopf issued a call for the Fed­ include in their ranks Associate Attorney General Ste­ eral Election Commission to exclude EIR founder Lyn­ phen Trott, FBI Deputy Director Oliver "Buck" Revell, don LaRouche from general elections; also, the Dem­ Assistant Attorney General William Weld, and others . ocratic National Committee held its semi-annual meet­ These men protected and covered up for persons who ing on the subject of how to stop laRouche's influence broke U.S. laws for the purpose of aiding the enemies in the Democratic Party . of the United States in the Middle East and in Central On April 29, FBI Director William Webster in­ America.EIR said so, and they tried to silence EIR . formed the Senate Intelligence Committee that Revell Right now , the editorial offices of EIR in Leesburg , of the FBI had failed to follow up an investigation of Va. and our headquarters in Washington, D.C., are the illegal relations of the NSC's North and Project beingoccupied by these criminals and traitors . Stephen Democracy's Richard Miller; also, Trott, under the Trott, William Weld, and Buck Revell, with some oth­ weight of EIR revelations, announced his intention to ers , are arbitrarityand unlawfully, without even a sham leave the Justice Department. On the same day , the court decision or order, are keeping our offices shut, DNC's Robert Strauss gave orders that the voice of and our files under lock-and-key in continuing flagrant LaRouche's friends be silenced "in the next two weeks . " violation of our constitutional rights . These traitors , Each day our voice is not stilled, we dismantle the Trott, Weld, Revell, and their accomplices, fear our illegal parallel government. To save this republic, join voice and wish it silenced. the EIR ' s fight.

72 National EIR May 8, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins Alert twice a week, including periodic reviews of debt, terror­ ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Alert Bulletin appears once a week in the fo rm of a one-page telex message.

In the U. S.: Confidential Alert annual subscription $3,500. In Europe: Confidential Telex Alert annual subscription OM 12,000, includes Quarterly Economic Report Alert Strategic Alert Newsletter (by mail) annual subscription OM 6,000 Make checks payable to:

EIR News Service P.o. Box 17390, Washington, D.C. 20041-0390 In Europe: EIR Nachrichtenagentur GmbH. Postfach 2308, Jl. 1an+ Ootzheimerstr. 166, 0-6200 Wiesbaden, F.R.G.

------�

I would like to subscribe to 1 Executive Intelligence Review for 1 Executive 1 o 1 year 0 6 months 0 3 months 1 Intelligence 1 I enclose $ _____ check or money order 1 I Review Please charge my 0 MasterCard 0 Visa 1 Card No. ____ Exp. date _____ 1 Signature ______u.s.. Canada and Mexico only 1 1 1 year ...... $396 Name ______1 6 months ...... $225 3 months ...... $125 Company ______Foreign Rates Phone ( Central America. West Indies. Venezuela I Address ______and Colombia: 1 ':Ir. $450, mo. $245, 6 1 3 mo. $135 1 City ------

South America: 0 , mo. $255, ______1 yr. $47 6 1 State Zip ___ 3 mo. $140. I I Make checks payable to EIR News Service Inc .. Europe. Middle East. Africa: 1 yr. DM 1400, '1 P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. DM 750, 3 mo. DM 420. Payable in 0390. In Europe: EIR Nachrichtenagentur deutschemarks or other European currencies. 1 GmbH. Postfach 2308. Ootzheimerstrasse 166. I 62 Wiesbaden. Federal Republic of Germany. Asia and Oceania: 1 yr. $550, 6 mo. $300, 1 telephone (06121) 8840. 3 mo. $150. 1 ______------