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Booksellers Inc. 27 S. King St. Leesburg, Va. 22075 Mastercard, Visa, American Express holders call: (703) 777-36611689-1048 Founder and Contributing Editor: LyndonH. LaRouche. Jr. Editor-in-chief: Crilon Zoakos Editor: NoraHamerman Managing Editor: Vin Berg Features Editor: Susan Welsh Production Director: Stephen Vann From the Editor Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. Christopher White Special Services: Richard Freeman Advertising Director: Susan Welsh Director of Press Services: Christina Huth

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Agriculture: Marcia Merry Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg Economics: David Goldman European Economics: Laurent Murawiec Energy: William Engdahl Europe: Vivian FreyreZoakos lbero-America: Robyn Quijano. Dennis Small Law: Edward Spannaus T he editors of Executive Intelligence Review are pleased to an­ Medicine: John Grauerholz. M.D. nounce the release in April of the first 1985EIR Quarterly Middle East: ThierryLalevee Economic Science and Technology: Marsha Freeman Report. This report was prepared under the personal 'supervision of Soviet Union and Eastern Europe: Lyndon H. LaRouche, Jr., the designer of the LaRouche-Riemann Rachel Douglas computerized econometric United States: Kathleen Klenetsky model which accurately forecast what would happen to the U. S. economy in every quarter since INTERNATIONAL BUREAUS: the end of Bangkok: Pakdee and Sophie Tanapura 1979, when Federal Reserve Chairman Paul A. Volcker announced Bogota: Javier Almario . his exorbitant interest rate policy. Bonn: George Gregory. Rainer Apel In Caracas: Carlos Mendez that same period, every other governmental or private eco­ Chicago: Paul Greenberg nomic model was proven dead wrong in its projections of the Copenhagen: Leni Thomsen economy. Houston: HarleySchlanger Lima: Sara Madueno Since mid-1983, we have been emphasizing that the official Los Angeles: Theodore Andromidas statistics produced under Paul Volcker's dictatorship over U .S. eco­ Mexico City: Josefina Menendez Milan: Marco Fanini nomic policy have been fraudulently concocted to prove the exist­ Monterrey: M. Luisa de Castro ence of a recovery that never happened. Early this year, LaRouche New Delhi: Susan Maitra ordered a doubling of EIR' s economic research staff to assemble an Paris: Katherine Kanter Rome: Leonardo Servadio. Stefania Sacchi accurate data-base of worldwide production figures. This staff has Stockholm: Clifford Gaddy been burning the midnight oil over the past six weeks to assemble United Nations: Douglas DeGroot the only accurate picture of the real economy now available. Reflec­ Washington. D.C.: Susan Kokinda. Stanley Ezrol tions of these studies have been appearing in EIR, including the lead Wiesbaden: Philip Golub. Mary Lalevee. of this week's Economics section. BarbaraSpahn The introduction to the Quarterly has been written by LaRouche Executive Inlelligence Review (ISSN 0273-(314) is published weekly (50 issues) except for the second week himself. of Julyandfirst week of Januaryby New Solidarity Many of our readers have already made the commitment to get Inul7IIltionai Press Service IOJO·16thN. W .• Washington. D.C. 20036(202) 955-5930 this document not only for themselves, but into the hands of every IIIEurope: Execulive Inlelligen.. ..,Review NachrichlenagenlUr GmbH. Postfach 2308. U.S. congressman, senator, and other leading public official. We Dotzheimerstrasse 166. 0-6200Wiesbaden, Tel: (06121) 44-90-31. Execulive Directors: Anno Hellenbroich, urge you to do so if you have not already placed your order. Michael Liebig IIIMuko: EIR, Francisco Dlas Covarrubias S4 A-3 Cnlonia San Rafael. Mexico OF. Tel: 592-0424. JtI[HIII.ub.criptioll.lIles: O.T.O. Research Corporation, Takeuchi Jlldg.,1-34-12 Takatanobaba, Shm]uku-Ku, Tokyo 160. Tel: (03) 208-7821. CnpyriJhlC 1985 New Solidarity International Press Service. All rights reserved. Reproduclion in whole or in pan wilhoul permissionstrictly prohibited. Second-class postage paid al New York, New Yorkand al additional mailing offices. 3 months­ $12S. 6111onths-$22S, I year-$396, Single issue-$tO Academic library rale: $245 per year _ To Post Master: Send all address changes 10 EIR. 1010- 16th N.W., Washington. D.C. 20036 (202) 955-5930 •

ITmContents

Investigation Economics

48 Threat to Europe: Why 4 The wrecking of the U.S. the Greens must be industrial workforce banDed Selections from a dossier prepared 10 Moscow betting on by our Wiesbaden bureau . Reagonomics?

50 Nazis discovered in the .12 Venezuelans pressed to Green Party yield equity Documentation: George Shultz on . 51 'A' deadly threat to the debt"fot-equity. republic' 13 Currency Rates 52 The formation of Moscow's 'Green column 14 Experts discuss high against the West technology, infrastructure, Asian trade links 57 Libya's Qaddafi backs the A New Delhi conference report. Greens 16 Labor Monetarists spur poverty in Germany. Departments 18 Transportation 17 Middle East Report Visentini bankrupting aerospace? Israel's economic suicide. 19 Banking 11 Report from Africa The new Third World debtors: Disease stalks the continent. you!

64 Editorial 20 Science and Technology The IMF's biological holocaust. Technology to win the war on drugs: Is there the political will to use it?

22 Business Briefs Volume 12 Number 16 April 23, 1985 I

Special Report International National

32 Gorbachov kindly otTers to 58 Bipartisan trade-war drive freeze Soviet superiority is national economic suicide 34 Will the Sudanese The "free traders" are demanding 'domino' fall due to U.S. "retaliatory measures" against support for the IMF? Japan-and only Moscow benefits.

36 Soviet plan hurt U.S. 60 Inside the Pentagon intelligence capability in Shultz's "speculative hope." the Middle East 61 Kissinger Watch NSIPSILco Scanlon 38 Central America: Reagan Asset stripper, equity grabber, Colombian President Betancur

29 A chronology of the War on Drugs

31 Meese: Cooperation is the top priority TIillEconomics

The wrecking of the u.s. industrial workforce

by KathyWolfe

President Ronald Reagan late last month, prompted by his passing that of theUnited States, which had fallen from 34% criminal economic advisers Donald Regan and Fed chainnan in 1950 to 30% by 1972. Paul Volcker, told the press that the "economic recovery is We are not just talking about historical trends. The U.S. creating hundreds of thousands of jobs a month," which industrial workforce has continued to decline during 1984 350,000 unemployed workers, just cut from the unemploy­ and 1985, despite claims of a falling unemployment rate by ment benefit rolls by a $3 billion federal assistance budget theFederal Reserve. During the Volcker recovery,the Soviet cut, should take. This is worse than a lie. In fact, therecovery Union became theonly real industrial power on the map, and hoax has allowed Regan and Volcker to gull the President the United States has lost the race for labor power. The U.S. into continuing Jimmy Carter's plan for the most severe re­ industrial workforce, which grew to a puny high of 30.3 duction of jobs, wages, and living standards inflicted upon million in 1980, fell back to 29 million in early 1985, while an advanced industrial workforce since Adolf Hitler's the Soviet industrial workforce surged ahead to over 65 Germany. million. The decimation of the productive powers of America's The United States' percent of industrial workers to total labor force by the current depression, especially of our once­ workforce declined to 25.8% (see Figure 1), while the So­ advanced and once-skilled industrial workforce, is no liber­ viet's pel"eentile reached 45% or more, edging closer to full al's tearjerker "issue," to be used against the President and industrialization potential. his defense buildup. It is rather a grave national security In productive industry after industry, the actual employ- threat to the United States, to our ability to run a war mobi­ Figure 1. lization, or indeed any kind of producive economic mobili­ General industrial workers drop sharply as a zation at all. percent of total labor force At the moment, the U. S. workforce is good for littlemore % than borrowing money to buy and sell imported goods. Even 40 the most casual comparison of U. S. industrial workforce potential to that of the Soviet Union, for example, makes the point of the security threat. 35 By 1972, the Soviet Union, still a relatively agrarian country, had pushed its industrial workforce to 47.4 million, nearly twice that of America at 26.8 million. (The Soviet 30 Union's total population of some 306 million is only 20% larger than ours of 250 million.) 25 Worse, the Soviets' ratio of industrial workers to total 60 72 76 80 84* workers in the economy, which in an advanced industrial 50 economy should be 55% or more, had grown to 38%, sur- • First two quarters

4 Economics EIR April 23, 1985 ment numbers have fallen absolutely, straight through the million estimated by the Reagan administration, but at least Volcker recovery. By 1983 the steel industry had only re­ 22-24 million persons either fully unemployed or woefully covered 5% of the jobs it had lost by 1982, and during the underemployed. Despite Volcker's lies, industrial employ­ "neight" of the recovery, in 1984, employment in steel in the ment in the United States, even according to official figures United States actually declined by over 30,000 jobs. Simi­ of the Department of Labor, is still a full one million below larly, the so-called recovery in U.S. auto employment, from the 1980 highpoint of 30.3 million, down at 29.2 million, 660,000 autoworkers in the 1982 trough to 875,000 at the barely more than the number completely unemployed! end of December, 1984, did not even approach the 1.1 mil­ Furthermore, of the 29.2 million industrial workers still lion employment levels of 1980. employed, data from an unpublished Labor Department study In fact, unemployment in the United States is not the 8.4 exposed for the first time here, indicate that as many as 10 million, almost one-third, lost their jobs at one point since 1978 and were "displaced," recycled to lower-skilled jobs at Figure 2A. cheaper wages. U.S. output per member of labor force dropped by more than half The post-industrial post-recovery 1.2 ______The most basic indicator of whether any economy is functioning correctly,as economist Lyndon H. LaRouche Jr, editor of the EIR Quarterly Report, has pointed out repeat­ 1.0 ---"...... o:::------�""'--.....,., ----- r_ edly. is the percentage of the workforce engaged in goods production. At minimum, 55% of the workforce should be producing goods for the rest of the population. 0.8 ______�--- By these standards, the United States has/ewer than half the industrial workers it needs, with only 25% of the work­ force engaged in production. The truth is that the United 0.6 ______� States has become a "post-industrial" economy, an economy which no longer produces what it consumes. This can be

0.4 ------1 clearly seen in Figure 2, which shows the output of new steel, machine tools, and motor vehicles produced in the 1950 55 60 65 70 75 80 82 United States permember of the labor force during the entire post-war period. Each worker who brings in a paycheck, Figure 26. simply put, is outputting fewer and fewer real goods. This means that the costs of producing one ton of steel, 105 �------one machine tool, and so on, throughout the entire U.S. 100 _--""�------_ economy. are being multipledmassively by the dollar amounts needed to pay all the non-producing workforce. It also means that the entire countryis living off imported oo ______�� ------goods from the rest of the world, which America has lost the

Figure 2C. 80 ------�r_------1.2 ______

Machine tools Units per 1 000workers 70 ______��--- 1.0 �.... =- ______=_----

60 ------��r_- 0.8 ------1r-

50 ______� 0.6 ______-11

40 ______0.4 ______

1950 55 60 65 70 75 80 82 1950 55 60 65 70 75 80 82

EIR April 23, 1985 Economics 5 ability to produce. If present trendscontinue America will be fewer than half the numberof those who "service" them? a "post-recovery" society-onebeyond recovery. The U.S. Department of Commerce released a study True,the economy is adding "service jobs," which have March 21 crowing about the fact that such "productive" ser­ grown steadily throughoutthe Volcker depressionof the past vice industries as casino gambling have caused a rise in fiveyears , from50 million in 1972, and 64.8million in 1980, employment and corporate earnings which "prove" the re­ to almost 70 million today (see Figure 3). But what kind of coveryexists ! an economy is it when the industrial producers of goodsare The Commerce Department's "Census of Service Indus­ tries"states that U.S. manufacturing employment, according Frgure 3. to official figures, dropped2% from 1977 to 1982, but never Service jobs more than doubled, as industrial mind. Employment in the service industries grew 29%, and jobs stagnated employment in retail sales grew 12% ... . Gains ranged Millions of workers from a high of 548% in New Jersey, where the industry was stimulated by the legalization of gambling, to a low of 28% 70 in Michigan," the industrial state where the economy has shut down. 60 The deCline of the West 50 ______��------Furthermore, the entire industrial world is shutting down its goods-producing economies as welL The similar ratio of � ------��------industrial workers to total workforcefor the top six nations-- . the United States, Canada, Germany, France, Britain, and 30 ��=::: Italy--has plummeted from 36% in 1972 to 28% in 1985. Only Japan, of all the industrial nations, has held about 35% 20� Figure 5.

__ Western industrial workforce has declined 10 ______(mining, manufacturing, utilities, construction)

Million workers _ o ______4* 50 60 72 76 80 8 20,______

* FIrSt two quarters

Figure 4. Industrial operatives plummet as percent of labor force

161______

50 ______

45 �r_------12

35 ------.------���k_------

� --���------��-- United Slates ------�-=��France ______�

25 ______��------�

4______

1972 76 80 82 84* 20 1950 55 60 65 70 75 8082 "First two qLlfll1llnl

6 Economics EUR April 23, 1985 of its workforce-stillbelow what is required-inproduction. creased through moonlighting and overtime, and their skills Great Britain led the collapse of productive labor. Brit­ thrown out the window. ain's percentage of industrial operatives, those actually en­ Their families are being destroyed as they now attempt to gaged in production on the production line or in transporta­ bring home the same dollar wages by sending their wives and tion, fell from 41.9% in 1950 to 25% in 1984. In West children out to work as well_ Germany, the fall was almost as severe, from 45.5% to 30%, It is these families, "what still works" in the economy, and in France, the productive workforce fell from 40% to the "success stories" of the Reagan recovery, which are the 30% roughly (see Figure 4). real Achilles heel of the U.S. labor force, because they give In fact, the absolute decline in numbers of the industrial the illusion that the population is able totake care of itself by workforces in some of these countries is frightening (see working harder. Rather, the working population is working Figure 5). France's industrial workforce has collapsed from itself to death. 8.15 million workers in 1972, to 6.97 million in 1984. West The portionof the labor force employed parttime to make Germany's has fallen from 12.519 million to 10. 196, and ends meet is also rising astronomically, from 12.4 million in Britain's from 10.34 million to 7.832 million. 1972 to 18.4 million in early 1985 (see Figure 6). Twenty Only Japan managed to add a million workers to its work­ percent of all non-farm workers in the United States today do force during the same 1972-84 period. not even have a full-time job. Compared to the industrial workforce of the United States, this is about 65% of the Recycled workforce workforce (see Figure 7). Unemployment in the United States is bad enough, but About half of them are women; and 75% of them are not even more horrifying is what has. happened to the "survivors" earning "extra" money, but are supplying a second income .of � 1919.Y ()lcker depression, die "displaced workers" who in a family wheI:e the inainbread-winner can no longer sup­ were laid off and then reemployed, many only on a part-time port the family. Of the total, 5.5 million are workers who basis and most of them on a lower skill level. Of the 29.2 really want a full-time job, euphemistically termed "part- million industrial workers still employed, EIR estimates that as many as /0 million, almost one third, lost their jobs at one Agure 7. point since 1978 and were recycled to lower-skilled jobs. Part-time workers soar to over half of U.S. Perhaps 14 inillion of the workforce as a whole were recycled. Industrial workforce

These workers, the current so-called productive U.S. % of total workforce workforce, have had their salaries reduced, manhours in- 80 ______

Figure 6. Part-time workers increased

Million workers

25 ______

70 ______���

20 ______��--

60 ______#- _____ 15 ______� �--�------

______10 ______

50 ______��------

5 r- ____ -- -- ��tIme .,.� __ --�----� -- arily part- Involunt =

o � ______

1972 16 80 82 84* 1972 76 80 82 84' "First two quarters "First two quarters

EIR April 23, 1985 Economics 7 time foreconomic reasons" by the Bureauof Labor Statistics pie, according to BL S figures, total unemployment in Janu­ (BLS), that is to say, they may even be the main bread­ ary 1979 was .2 million and rose to a height of 11.9 million earnersfor their families andsimply cannot findenough work in December 1982, an increment of 5.7 million, which means at all. their total turnover figure of 11.5 is roughly twice the highest increment of unemployment. In reality, real 1979 unemploy­ 'Displaced workers' ment was some 13-14 million, and rose to 24 million. With Worseare thosenow supposedlyfull-time employed, but that minimum real increment of 10 million, we would esti­ at lower skill and wage levels, what the Department of Labor mate total turnover at 20 million at least. calls "displaced workers." According toan unpublished study However, even the BL S figures (which can be mentally by theBL S, exposed for the firsttime here, over 11.5 million doubled for true accuracy as the reader goes along) provide a workers lost their jobs between January 1979 and January horrifying picture of employment, especially in heavy indus­ 1984due to the shutdown or relocation of their plants, elim­ try. Large percentages, nearly 50%, of the total workers ination of a position or shift, or slack work. "Special Study displaced were in the heaviest manufacturing sectors, includ­ on Displaced Workers," summary results of which were re­ ing 400,000 in machinery; 350,000 in transportation equip­ leased in November 1984, showed that as of the one-time ment; 22,000 in primary metals; and 225,000 in auto. Of the study date of Jan. 31, 1984, 7 million workers had been longer tenured workers in these heavy industries, fewer than reemployed. However, approximately J.8 million of them half, oniy 45.7%, were ever reemployed. (25.8%) hadonly fo und part-time or selfemploym ent. EIR's real estimate of workersdisplaced during thatfive­ Figure 9. yearperiod is probably at least 2()"23 million or perhapstwice Fathers can no longer support families as much as reported by the BLS, with about 12-14 million of these reemployed, of which 2.5-3.5 million are on only part time or self employment. The BLS based its estimates on a census, but they lie about censuses, as well as about everything else. For exam-

Figure 8. Traditional married-couple families drop 10% as a percent of total U,S. families 52.8% %

92 ______1967 1976 1984* Key • % FamilIeS where husband is 801. provider 'First twoquarters

90 �------o % FamilIeS wherewife must _ric

The most highly skilled workers were the first attacked

88 ____� ------by the Volcker policy, a deliberate policy of lowering the general skill level of the workforce. Manufacturing workers displaced fromjobs at which they had 10 years or more tenure,

86 ______�------the skilled core of the auto and other workforces, were 30% of those laid offand recycled to lower-skilled jobs, often in paper pushing. The highly skilled blue collar production operatives took � ------��------the brunt of the displacement, while "managerial" paper pushers instead were hired and rehired. "From an occupa­

82 ______���------tional standpoint, operators, fabricators, and laborers figured most prominently among the workers who had been dis­ placed fromjobs," BLS reports, while "higher skilled" white

80 ______� collar workers "were more likely to be reemployed."

Destruction of the productive family unit

78 ______The most indicative trend of the destruction of the pro­ ductive family unit is the extent to which the main bread­ 1972 76 80 82 84* winner, previously the father, can no longer provide for a 'Flf8t two quarters basic working household with his own labor. Where previ-

8 Economics EIR April 23, 1985 ously just a father's 4O-hour work week would provide for a the no longer sufficient and reduced main bread-winner's family of four or more, now an 80-hour work week by the weekly income. father, mother, and other family members is necessary to The phenomenon of "second bread-winners" becomes bring home the same or lower living standard. more serious and is even more intense when only "married

This in part reflects the cultural collapse of the tradtional couple" households, i.e.• those households actually orpoten­ nuclear family itself, the collapse of "normal" households as tially producing childrenand reproducingthe labor force, are we knew them in the 1950s, which fell from 90% of U. S. studied. The number of married couple households which families in 1967 to 80% in 1984 (see Figure 8). The number had botha husband and a wife employed to make ends meet, of single, roommated, "gay," and other non-traditional (not rose from 39% in 1977 to 58% in 1984, and another 10% of those had another "second earner" employed, either a child or other relative, to supplement the insufficient father's Figure 10. U.S. households' debt doubled in seven years income. Billions of U.S. dollars These figures are borne out by the number of women of 2,175 child-bearing age now forced to work just to eat. At the end 1,938 of 1984, more than 80% of single women age 25-34 were working, and 65% of married women of the same age were 1741 1,654 working. The number of even married women with small pre-school children (children under 6) who were forced to work grew from 26% in 1967 to 55% at the end of 1984,

1,200 despite the so-called recovery. The ability of the family to produce sane and productive children with this level of eco­ 1,044 nomic hafdship and stress visited upon the mother is now totally in doubt.

635 750 1,101 1,101 1,204 1,334 Figure 11. Debt service payments surpass industrial wages Billions U.S. $

000 ______

1977 1978 1981 1982 1983 1984

Key 700 ______� ______� �-- o Mortgagtla

• Consumer Credit

600 ______--, the normal married couple) households in the United States rose from 10% to 20% of families in America during the 500 ______1967-84 period. These households, which have no respon­ sibility for reproducing the labor force, accounted for increas­ ing amounts of the population and the labor force, that is, 400 ______they took up in effect "scarce" jobs, the income of which supported themselves, but did not reproduce the labot �orce. More importantly, all of the working fathers who have 300 ______been recycled to lower-skilled jobs at lower wages, can no ���------longer support their families (Figure 9). In 1965, 40% of fathers in America could support their families with one job . By 1976, after the 1974 "oil shock" depression, only 28% of workers in the United States were able to support their house­ holds singlehandedly. By 1983, after the Volcker shock of 100 ______'79-82, this had fallen to only 23%, and despite the so-called recovery, the percentage actually dropped to 22% by the end of 1984. 0 ______Fully 35% of the labor force in 1984 was made up of

"second bread-winners," wives, teenagers, roommates, and 1972 76 82 84' relatives in a household who had gone to work to supplement 'First 1Wo quarters

EIR April 23, 1985 Economics 9 Georgii Arkadyevich, you talked about last year'sbudget & Economy Strategy deficit.This fiscalyear, the budget deficit-thatis, the excess of expenditure over revenue-is already more than $200 billion.In order to somehow extricate itself from this posi­ tion, the administration has to plunge ever deeper into the quagmire of debt, and the U.S. national debt to private cor­ porations and banks has already exceeded quite astronomical amounts, having far exceeded the limit of a trillion dollars, and cannot continue like this for long. Today, one can live in debt, but debts must be repaid.. . . Sooner or later the United States will have to face this bitter truth, and some people in Washington now understand this. It is interesting that the current White House chief of staff, Moscow betting on when he was not in the White House but still in the post of Secretary of the Treasury-I mean Donald Regan-said, I Reaganomics? will quote him: "If the most serious measures are not taken nd the current budget deficit remains, we will lose our econ­ omy." These are very responsible words, and the Secretary In a March 30 television broadcast in Moscow on the topic of the Treasury does not just make idle statements. Admit­ of the arms-control negotiations, the chief Soviet American­ tedly now, finding himself in the White House, Donald Re­ ologist, Georgii Arbatov of the U.S.A. & CanadaInstitute , gan does not make such statements-at least, not out loud­ putforward the Soviet approach to the Geneva talks, based but the essence of the matter does not change. on an evaluation of whether the United States could affo rd to It is difficult to tell what Washington is counting on when move ahead with the Strategic Defense Initiative under its it uncoils the arms race not according to the means or re­ current economic policy. As the fo llowing quotations show, sources of the U. S. economy.Either the boss of the White the Soviet view is that the U.S. economy cannot. Therefore, House is insufficiently aware of all the consequences or, like the Soviet strategy is to buy time on the assumption that the one of the French kings, he operates on the principle: Apres U.S. economy will collapse before the White House can ac­ nous Ie deluge, and is not very concerned about the legacy tually implement the SDI, under current U.S. policy. he leaves for his successor.But the fact remains-an objec­ The excerpts below are from the translation provided by tive fact-the current level of military expenditure is a back­ the Foreign Broadcasting Information Service. Arbatov and breaking burden for the U.S.economy. If appropriate mod­ Pravda's Yevgenii Grigoryev were guests on the March 30 ifications are not made, the future situation will be fraught edition of "Studio Nine"; the host was Valentin Zorin. Em­ with the most serious consequences. I do not know whether phasis has been added. the officialsof Washington are aware of this, but ifsomeone Arbatov, discussing the U.S. debt, which he blames on believes that we in Moscow do not see this and do not fo llow military spending: "How to get out of the situation? Fearing this problem carefully, he is making a very serious mistake. inflation they do not want to set the printing presses in mo­ We can see it. tion, to print money. What happens? This cost of credit Arbatov: Yes, we are aware of this. After all, the U.S. increases.... This has now become the curse of the Amer­ economyis the most powerful economy inthe capitalist world, ican economy at all levels.An enormous number of farmers and of course, one cannot underestimate its resources, but have gone broke-and arecontinuing to go broke-sincelast these resources certainly have their limits. In general, not fall. Moreover, many of them go broke simply because they only the desire to impose the armsrace on us in order to bleed cannot get into such credit situations, of enormous and liter­ us dry economically ... was behind the arms race.I cannot ally usurious interest rates. say that it is very easy for us. Of course, our country has to, Grigoryev: They say that only in the last year, the U. S., in looking after its security, spend more than it would like to or its banks, pumped nearly $100 billion from Western Eu­ on the arms race. But on the path to achieving their aims-­ rope and certain other Western countries; $100 billion is and one can see this today-the Americans themselves will almost one-third of its annual military budget. not survive, so to speak, I mean economically. You see, this Zorin: I would like to say that the present Washington question of the deficit has today already become the main leadership, having uncoiled an enormous spiral of the arms question of political struggle in the United States. I think that race, has apparently made a very serious mistake with long­ it will be the primary question in the whole political campaign term consequences.The mistake lies in the fa ct that the re­ associated with the congressional elections, when the current sources of the American economy have been overestimated administration-if these problems grow-could also los� the and the scale of the arms race has exceeded its resources. Senate. Their political rivals already have the House.

10 Economics EIR April 23, 1985 Africa Report by Mary Lalevee

Disease stalks the continent cumb unless massive efforts are made But with no relevant official willing to give a precise picture, its to bring in adequate food supplies and true extent is being covered up. infrastructure. Even in "normal" times, 80% of the childrenin Sudan suffer from dis­ eases like dysentery, measles, bilhar­ zia, scurvy, and hepatatis. Sleeping pidemics are on the march water," said the Red Cross official. sickness is also endemic in many parts E . throughout Africa, but their true ex­ "In a typical situation, a refugee camp of Africa. In Sudan, the disease has tent is being covered up, delaying rel­ has dry latrines. Then comes flash spread throughout the south of the atively simple treatment for some dis­ flooding, and excrement is washed all country, with 1.5 million people at eases which areotherwise sure killers . over the place." Recent heavy rains risk. Meanwhile, with no official willing to have washed infected soil into the There are two kinds of sleeping­ give precise figures on how far dis­ water supply of the town of Hargeisa, sickness parasite spread by the tsetse eases have spread, one may be sure, where 250,000 people live. fly. One is the Gambian strain, mostly thousands aredying. Cholera is caused by bacteria, Vi­ found in Zaire and the Central African Famine, malnutrition, and lack of brio Cholera. A spokesman for the Republic. A new strain is the Rhode­ basic infrastructure are the "objec­ World Health Organization in Geneva sian parasite, which if not treated rap­ tive" causes-i .e., the policies of the said that cholera had first appeared in idly, kills within six months. This type International Monetary Fund through Africa in 1970, but now it is wide­ is said to beendemic in Uganda, Ken­ which genocide is being inflicted on spread. ''There has been a lot of chol­ ya, and Ethiopia. the continent. era in West Africa this year, and ru­ The European Community is in­ The vast majority of Africans have mors of cholera in Ethiopia and Su­ volved in a $180 million program to no access to clean drinking water-{)n dan." Prevention of the disease is rel­ eliminate the tsetse fly in Zimbabwe, average only 25% of the population in atively simple: "Good sanitation and Zambia, Malawi, and Mozambique sub-Saharan Africa does, according to clean drinkingwater preventthe spread using pesticides. The aim is to open the World Bank's figures-which puts of cholera." Treatment for cholera up vast areas of land for cattle raising, them at great risk to disease. This, victims is also relatively simple, in­ land at present unused because the combined with the general level of un­ volving rehydration, with fluids, so­ tsetse fly also infects cattle with a dis­ dernourishment, leaves the popula­ dium, and potassium. ease called nagana. tion unable to resist the slightest The situation has to be desperate But the Sunday Times of London infection. before any government will publicly reported last month that this campaign Of greatest immediate concern is announce that cholera is spreading: It was running into opposition from en­ a cholera epidemic now spreading is considered almost a matter of na­ vironmentalistsand an unnamed inter­ throughout Somalia. A Red Cross tional security. The Red Cross official national bank, who claim that the war spokesman in Geneva said that 1,000 I spoke to, for example, refused to against the tsetse fly is clearing land people have already died of the dis­ name othercountries where cholera is which is "too fragile to support inten­ ease, and 300,000 more are at risk. spreading, although he admitted that sive cattle ranching for more than a The spokesman said that the number it was "widespread." ''The only per­ few years." The bank is reported to be of new cases was increasing every day, son who can announce thepresence of backing a film called ''The End of although the number of deaths is now cholera is the localminister of health, Eden," showing that "opening up Af­ decreasing. so that's why organizations talk of rica to unsuitable forms of exploita­ The cholera victims are all in or 'diseases with cholera-like symp- tiOll--such as large-scale cattle rais­

around a makeshift refugee camp at toms.' " ing-will, in destroying its ecology, Gannad, near Hargeisa. 46,000 refu­ Antibiotics and rehydration solu­ destroy its economic viability in the gees from neighboring Ethiopia are tions are being sent to the area, but it long term." crowded on a hill on the edge of Har­ is obvious that the hundreds of thou­ Is this the start of an international geisa, with no water supply or sanita­ sands of refugees, weakened by mal­ campaign by environmentalist organ­ tion . "Cholera is caused by dirty nutritionand famine, will quicklysuc- izations to save the killer tsetse fly?

EnR Apri1 23,1985 Economics 11 under Venezuelan President Luis Herrera Campins, gave evidence on the vast scope of the debt-for-equity drive . He commented on the proposal: "An offensive exists in Latin Americato present it as the only valid alternativeto reactivate the economy of our countries by attracting foreign capi­

tal. . ..Ij ust came fromEcuador and Peru , where I encoun­ Venezuelans pressed tered a movement with the same characteristics and the same arguments which I have heard here in the Invest in Venezuela to yield equity seminar." In several ways, Thero-American governments are yield­ by Salvador Lozano ing to the pressure. On March 15, The Wall Street Journal reported that the Mexican government was offering to its creditors the chance of buying stock in 40 of the most impor­ On March 26, at a businessmen's seminar entitled Invest in tant Mexican firms , including some in the steel industry, in Venezuela, Alfredo Morales Hernandez, chairman of the exchange for interestthat was not paid. "Clarifications"from Caracas Stock Exchange, made an unheard-of proposal: that the Mexican authorities just confirmed the existence of ne­ between 10% and 15% of the stock of the state-owned oil gotiations of that sort. Earlier changes in the foreign invest­ firm Petr6leos de Venezuela, SA (PDVSA) and its subsidi­ ment law were seen as intended to facilitate debt-for-equity aries be sold to private entities, both national and foreign. arrangements. The proposal was immediately and categorically rej ected by the relevant Venezuelan government officials. The Min­ ister of Mining and Energy, Arturo Hernandez Grisanti, de­ "Financing future expansion nied the government may even consider the possibility of selling stockof Petr6leosde Venezuela. will not come about through "This is a proposal which seems unusual to me . We must commercial bank lending. . . [but] remember that the nationalization of the petroleum industry funds that come in the form of was not a political , nor even an economic act; it was a deci­ sion of historical character, of profound national signifi­ equity, of ownership." cance, supported unanimously by the country . As a result, this proposal in a certain sense is equivalent to a kind of denationalization," said Hernandez. During his u. s. visit, Argentina's President Raul Alfon­ But that clearly was just the first round in what will be a sin, met a group of oil investors in Houston, including the much nastier fight. For the proposal was only a component head of entrepreneurial relations of the Heritage Club, Chris­ of the present, broader drive to implement this year Henry tian de Fouloy, and president of the Center for International Kissinger's scheme of collecting debt in the form of equity, Business, Jack Murphy, to talkon the Argentine oil industry. which scheme Secretary of State George Shultz promulgated Later, De Fouloy told the Buenos Aires magazine La Se­ as official U.S. policy on March 6. "It must be clear to people mana:"President Alfonsfn was very sincere and put his cards by now ," he said, "that financing future expansion in eco­ on the table ....From now on, the companies which want nomic development around the world will not come about to invest for development of the basic reserves and resources through commercial bank lending ...[but] through funds are going to do it under equal conditions to those which up to that come in the form of equity, of ownership." now have been enjoyed by the national companies." The debt-for-equity scheme was contrived at a meeting In addition, the head ofPeru's Central Reserve Bank said held a year and a half ago in Vail, Colorado, by Kissinger, that a way to pay would be "allowing the IMF to capitalize Alan Greenspan, and U.S. bank officials, with the dubious thedebt s". A law which allows state-owned firms to individ­ ornaments of Gerry Ford , Helmut Schmidt, Valery Giscard ually repay debts by selling their estates has already been d'Estaing; and other has-been heads of government, gathered promulgated in Peru. for the ostensible purpose of discussing the future of the Despite the strong reaction of Venezuelan government Pacific Basin. The meeting ended with Greenspan, member officialsto theproposal of PDVSA' s being partially sold, the of Morgan Guaranty Bank's board of directors, announcing chairman of the Superintendancy of Foreign Investments, that the "private part" of the forum was dedicated to discuss­ Alfredo Gonzalez Amare , is directing preparations for ing the problem of thedebt and concluded it has be repaid "in changing the Venezuelan foreign investment law. He has equity in the indebted nations ." The push to implement the long lobbied for changes, and wanted them before the Invest scheme began immediately afterwards. in Venezuela seminar, according to Caracas sources. His On March 30, the president of the Andean Tribunal of proposed changes include foreign-currencydenomination for Justice, Jose Guillermo Andueza, who was minister ofjustice foreign investments , no limitations on including foreigners

12 Economics EER April 23, 1985 on boards of directors, and the right of foreign investors to acquire real estate. Gonzalez calls this "Reverting the Miami effect to the Currency Rates Venezuelan economy," i.e., under a pretense of attracting flightcapital to Venezuela, making it another Miami. Miami is one of the major laundering centers for narcodollars; flight The dollar in deutschemarks capital from Venezuela helped to set up the laundering ma­ New York lale afternoon fixing chine. Gonzalez wants to bring that capital back to Venezuela 4.00 I' " A by establishing the conditions there which firstattracted it to - . , 3.35 � Mlamt· . I \/ \ 1/ Y' 3.30 1 Documentation 3.25 '" \ Excerptedfrom Secretary of State George P. Shultz's re­ 3.1O V, marks to reporters at a question-anti-answer session before 3. IS the National Academy of Sciences, Washington, D.C., on 3.10 March 6: �.... 2/1O 2127 3/6 3/13 3/20 3/27 4/3 4/10

I think that we should encourage other countries to take a The dollar in yen lesson and provide an environment that's more attractive to New Yo rk lale afternoon fixing investment. In fact, I think, from the standpoint of the sort of gross 170 financialproblems of theworld, it must be clear to peopleby 160 � - - - � now that financing future expansion in economic develop­ � ment around the worldwill not come about through commer­ 2SO P""""� � cial bank lending, and will not come about through increases 240 in concessional aid. 230 If it comes about, it will come about through funds that come in the form of equity, of ownership, of that kind of 11O investment-a form of investment that has tended to be re­ 211O 2/17 3/6 3/ 13 3/20 3/17 4/3 4/10 sisted, if not rejected, in many developing countries. They The dollar in Swiss francs have to learn, with all due respectto whatever bankers there New York laleafte.- fixing may be in the room,that debtis dead. All debt wants is to get paid back. Otherwise, it doesn't care, and wants its interest. 1.85 l Equity cares. Equity has a stake. Equity brings drive; %.80 equity brings technological know-how; equity brings access 1\ to markets. Also equity brings the fact that if things go sour, 1.75 \ it doesn't get paid anything. Thereisn 't anyautomatic interest. 1.70 !'Y � So I think a big lesson people have to learn is how to 1.65 � make themselves attractive to that kind of money, and right � � now the United States is perhaps more attractive than any 1.60 V 316 3/13 3/10 3/17 4/3 4/ 10 place else, with allour problems-and I know we have plen­ 1I1O 2117 ty-but the high dollar which is a result not of what one The British pound in dollars would get solely on the basis of trade flows, but rather as a New york late afte.- fixing reflection of these great financial flows to the United States. It's a kind of Switzerland effect, you might say. 1.30 .l A We are like Switzerland right now, and the dollar strength 1.15 1\ L [l is a result of that. And so it is playing havoc with our trade 1.1O I relationships in a manner that really can't endure. We can't I \ '1 J""'- run these kinds of deficits indefinitely. We allknow that. 1.15 � rv And it also, I think, carriesa danger thatit will distort the 1.10 characteristics of our own industrialbase as very competitive t products made in the United States are priced out of world 1.85 markets, not because of anything done here but because of 1I1O 1117 3/6 3113 3/1O 3117 4/3 4/ 10 what happens to the dollar.

EIR April 23, 1985 Economics 13 New DelhiCo nference Rep�rt

Experts discuss high technology, infrastructure, Asian trade links by Linda de Hoyos and Susan Maitra

India's economy must make a quantum leap in its growth if tanu Maitra, editor-in-chief of Fusion Asia, noted. "But it it is to meet the challenges of the 21st century, concluded a was the willingness of independent India's first prime min­ two-day conference titled, "India an Agro-Industrial Super­ ister, lawaharlal Nehru, to make the tough decisions that set powerby the 21st Century: A Strategy for Economic Break­ the course for India's development so far. Even when many out." The April 9- 10 conference in New Delhi brought to­ people were starving to death or near starvation, Prime Min­ gether distinguished individuals and experts from India and ister Nehru took the correctdecision to focus theeconomy 's abroad, fielding four proposals that will be placed before the resources on building the steel sector and building a scientific government. and technological workforce. Now we must build on these Sponsoredby Fusion Asia, the New Delhi-based quarter­ accomplishments by taking bold and decisive steps in the ly of science and economics, the conference organizers, areas of infrastructure and high technology." headed by C. Hingarhof Modipon, Ltd., included Dr. K.D. Sharmaof the Delhi Economic Club, Dr. R. K. Hazari, for­ Development of the Ganges River Basin mer Reserve Bank of India deputy governor,and D. S. Rawat The Ganges River Basin, home of nearly half the popu­ of the Punjab-Haryana-Delhi Chamber of Commerce and lation, is one of the poorest but potentially richest areas of Industry. the country. "It has long been known that the valley could "Though extravagant-because we in India do not nor­ feed much of the world's population. And the industrial p0- mally talk of 'superpower' status for us," Minister of State tential of thearea is no less," Maitrastat ed. "Yet, to this day, for Planning K. R. Narayanan stated in inaugurating the the valley remains a showcase of poverty and backwardness. meeting, "the title of this conference is an encouraging theme, We need a task force approach to theproblem , taking the an optimistic theme, and maybe a realizable theme." He valley as a whole and formulating a comprehensive water­ continued: "I hope in your deliberations you will throw up management program as the basis for systematic develop­ concrete ideas of realizing these dreams-which may not be ment of the basin area." dreams , whether it is in regard to the development of the In a background paper and talk at the conference, Maitra Ganga, or the application of technology to daily life and outlined the basin's problems and enormous potential. Gov­ production, or to linking Asia together more effectively." ernment should create a team of experts to carry out a time­ Following the public opening session, 40 participants bound survey of all aspects of the Ganges River system, he discussed three areas of economic policy required to move said. Interestingly, as Narayanan had pointed out earlier, India's economy into a new geometry of more dynamic such a survey had been an early concern of the Indian Na­ growth: Ganges Valley-Lifeline to India' s Future; Impact tional Congress, and of Nehru in particular. In his inaugural of High Technology on Productivity; and, Looking East­ address, Narayanan read the text of a 1937 party resolution Benefits of an Asia-Oriented TradePoli cy. to initiate such a study. The deliberations focused on transforming India from an Prof. H. L. Uppal, a waterengineer with PunjabAgricul­ agrarian-based economy absorbing 71% of the population to tural University, empbasized that both the surface- and an industrial economy in which 50% or less is involved in ground-water systems must be harnessedand the basin treat­ food production. As Uwe Henke von Parpart of the Fusion ed as one ecological system. India's satellite technology can Energy Foundation stressed, thinking must focus onproduc­ be used tocomplete the survey in a timely manner. Proposals tivity rather than production . "If we concentrate on produc­ for flood control, soil erosion control, power, and ground­ tivity, production will come automatically. If we do not con­ water development can then be formulatedand carriedout to centrateon productivity, production will stagnate." "train" the Ganges. This will require "tough decisions" by government,Ram- The resulting increase in irrigation and other benefits

14 Economics EIR April 23, 1985 would boost agricultural production in the region by about er of the opposition Chat Thai party stated. "I believe that 150 million tons per annum, the equivalent of India's total India will benefit as a supplier of modem technology, a sup­ currentgrain production. Water transportation, industrialex­ plier of steel andother construction materials, and also skilled pansion the rej uvenation of old cities, and building of new labor forceand technicians during the construction of the Kra ' cities along this historic river, will also be possible. Canal and the industries that will be developed in the canal zone afterwards." High technology and productivity He detailed the recently revived 200-year-old idea to India must utilize the most advanced technologies and build a canal across the Kra Isthmus of Thailand at the final the most advanced areas of science to make even marginal panel session chairedby Dr. Hazari. Otherspeakers included gains in solving the problem of poverty. This was discussed K. L. Dalal, India's former ambassador to Thailand, and in the second panel session, and several concrete proposals Prof. P. N. Agarwala, an AsianDeveJopment Bank consult­ - emerged. ant. Dr. Norio Yamamoto pf Japan's Mitsubishi Research For further industrialization, India requires a fully mod­ Institute sent his greetings. em machine-tool industry. Laser technologies provide the "Althoughseveral generations of our forefathers have not most efficient and productive pathway forbuilding this in­ been able to bring the idea of a Kra Canal into reality," dustry. As Dr. Deb K. Ghosh, professor of physics at the Adireksamconcluded , "withincreasing support from various Indian Institute of Technology in Bombay, demonstrated, interestedand influentialgroups in Thailandand other coun­ use of lasers in precision-cutting, welding, annealing, ma­ tries such as the U.S.A., Japan, and India, I have a growing chinery operation, and heat treatmentcan yield productivity confidence that . . . the progressive new generation of your increases on the order of several hundred to several thousand Prime Minister Rajiv Gandhi, of myself and many in this percent. The government, it was recommended, should en­ room, would exertjoint effortsto makethe CanalKra pro ject, courage private-sector involvement in laser technologies' de­ the dream of the old generations, become a reality in our velopment and application. lifetime. " Dr. N. Tata Rao, chairman of the Andhrapradesh State Electricity Board and of the Central Power Authority, point­ ed out that India produces only 40,000 megawatts of electri­ cal power per annum, a very low 150 units per capita. "En­ II\YES'('.\l E\T OPPOlfrL'\ ITIES ergy production cannot be improved by reliance on coal­ (>FITHEI) powered stations. There are better uses for India's coal re­ • serves than mere heat generation." India could move much faster in production of nuclear power plants. With the current ZAMAHAMI ARABIANS program to build 10 gigawatts of nuclear power by the year located at 2000, nuclear would still provide for only 10% of power requirements. Moving into the 21st century, Dr. Rao said, fusionenergy should beused as quickly as possible. Moehlmans':BMRanch and A highlight of the conference was the discussion of a Training Stable "Look East" orientation in India's tradepolicy. "We arenow entering a new era when the old concept which Jawaharlal home of Nehru had entertained of Asian cooperation is again emerg­ ing as a practical possibility," Narayanan stated. "In this ZARAB O+++ respect the idea of a Kra Canal is a very crucial one ....In order to link up India, China, Japan, and the Southeast Asian TRIPLE NATIONAL CHAMPION countries together, this canal can play a far-reaching role." STALLION- Pongpol Adireksam, a member of the Thai parliament LEGION OF SUPREME MERIT and guest speaker, urged India to look toward Japan and National Champion Sons & Southeast Asia for partners in economic cooperation. "In my Daughters of ZARAB O + + + Available opinion, the Kra Canal would offer India a strong boost to the industries and ports of the easterncoastal areas and to the For Further Information Contact­ Andaman and Nicobar Islands." Marge Moehlman, Manager "I foresee that the canal and the subsequent growth of P.O. Box 1567 Greenville, Texas 75401 industries will coincide with Indian Prime Minister Rajiv Telephone: Peoples (214) 862-3602 Gandhi's long-term policy to strengthen infrastructure for scientificand technological developments in India," the lead-

EIR April 23, 1985 Economics 15 Labor in Focus by Rainer Apel

Monetarists spur poverty in Germany sis and the European Commission's On Arthur Burns's cue, the Free Democratshave launched the steel production quotas have ruined drive to destroy the industrial laborfo rce in West Germany. the company: At present, only 14,000 steel workers are employed at Arbed, and most of them at the main plant in the city of Volklingen. "Fighting unemployment has employment front"-and the German Now-with steel going down, never played an importantrole at the labor movement, Social and Christian mining and supplying industries will beginning of an economic recovery." Democrats alike, called on Chancellor collapse. Tax incomes fall for the cit­ This has become one ofthe slogans of Helmut Kohl to "denounce this prov­ ies and the state, as well as private West German governmentspokesmen ocation immediately." consumption. Unemployment turns whenever they have to speak on the Numerous other prominent Free into long-term unemployment, into economic situation. The other slogan Democrats, among them the former social welfare conditions, and then is: ''The costs of labor are too high in economics minister Count Lambs­ poverty. Employment is kept at the Germany;that is what is wrong." dorff, have backed Haussmann's pro­ current evel by state subsidies which The latter argument was intro­ vocative call. On April 10, Bange­ have to be paid from credits taken by duced into the economic debate by mann poured more fuel into the heated the government. Debt service for none other than the outgoing U.S. am­ debate on wage cuts in an interview credits absorbs all of the surplus left bassador, Arthur Bums, in a series of with Bildzeitung. Bangemann said: in the state. Saarland finds itself in a interviews appearing in mid-March. "Work has become too expensive in situation similar tomany Third World Former U.S. Fed chairman Bums, a our country. . . . I am sure an unem­ countries. staunch proponent of monetarist doc­ ployed worker prefers to have a job Saarbruecken, the capital of Saar­ trines (forexample, usury), proposed with less than the average-contract land, once had the Burbach plant of to lower workers' wages to prompt pay, rather than lying on the street." Arbed Steel with several thousandsteel more investment and job-creation. Calling for "regional differentia­ workers employed. The plant col­ Bums proposedto have the workforce tion of wage levels," in order to make lapsed-part of a much ballyhooed pay for the depression caused by the regions with lower wages "more at­ "consolidation plan." The unemploy­ monetarist at the International Mone­ tractive to investments," Bangemann ment rate in Saarbruecken jumped up tary Fund(IMF) and the World Bank. said he considered it "an insanity that to one of the highest in West Ger­ Bums's proposals have been am­ there are the same wages at Arbed many, over 17%. Another 15% of the plified by the Free Democrats, Chan­ Steel, which is deep in the red, as at population is on welfare . cellor Kohl's coalition partners, who Thyssen Steel, which makes a good The situation in Voelklingen, the calledfor measures to lower the "costs profit." Bangemann also demanded site of the other big plant of Arbed of labor." that the lower-income categories of Steel, which is still working, is even This is what Helmut Haussmann, work be given lower increases in fu­ worse, since the city's population the economic policy spokesman of the ture wage-bargaining rounds. Bange­ solely depends on steel, mining, and Free Democrats, said in several inter­ mann leaked in Bonn that he wants to the supplying industries. Voelklingen views during early April, and this is cut state subsidies to zero--to contrib­ had an official unemployment rate of what Bonn Economics Minister Mar­ ute to the "consolidation of the admin­ 19% in March, with another 5% of the tin Bangemann-the national chair­ istrative budget." total population on welfare . The city man of the Free Democrats-has said. What the FDP proposals, and es­ administration expects that of the Haussmann told the weekly Bildzei­ pecially Bangemann's, mean for the 1,400 still working at the plant, be­ tung on April 2: "If a worker cannot depressed West German economy is tween 2,000 and 4,000 will have to be find a job for 20 deutschemarks an drastically shown by the company he laid off in 1985 or by spring of 1986 hour, why should he 00prevented from named-Arbed Steel. Arbed, the main at the latest, when the subsidies are finding another one for eight deut­ industrial production center and larg­ scheduled to be cut. The unemploy­ schemarks , instead?" Haussmann at­ est employer of industrial labor in the ment rate would jump to 30 or 35%, tacked the labor movement for "rais­ state of Saarland, had 22,000workers andthe rate of welfare recipients would ing obstacles to new flexibility on the fiveyears ago, but the world steel cri- double.

16 Economics EIR April 23, 1985 Middle East Report by Thieny Lalevee

Israel's economic suicide rusalemreported it. Under the thumb of the dope mob, the country is now moving Ya' acobi wants an American bank toward the kind of societywhich has no room fo r pensioners. to open a branch in Israel , so that dol­ lars can be deposited by Israelis "with no questions asked" about the origin of the money. The dollars will be rein­ vested intoIsrael 's economy and could bewithdrawn at will by the depositors. On April 1 came the announcement According to a study by the Jeru­ No one in the media raised the that Israel and Iraq had signed a $3 salem Post, more than 150,000 pen­ question of where these dollars would billion trade agreement, and cabinet sioners live on no more than $120 a come from--quite a question, given ministers and parliamentarians went month . Free distribution of rotten and that drug-traffickingin and throughIs­ on record all day long in praise of the unsold goods and foodstuffs has be­ rael is reaching a peak. fact. Considering Prime Minister Shi­ come a regular habit of shopkeepers In step with the international drug mon Peres's declarations in mid­ who realize that this is the only meat mafia's takeover of Lebanon, Israel March praising the "moderate" Cairo­ or fish the pensioners will obtain. In . has again become a link in trafficking Amman-Baghdad axis, the announce­ effect, people are being kept alive at to Europe, as shown by a growing ment was not very much appreciated the initiative of private shopkeepers , number of airport arrests and cocaine in Damascus or Teheran . while several billion shekels in the and heroin seizures, not to mention 'The trade deal is indicative of the budget of the National Insurance In­ tons of hashish routinely intercepted new trends in Israeli government pol­ stitute, which pays the pensions, have at the Lebanese border. icy toward the Gulf war, and reflects been frozen by Modai . Establishing banking facilities a late realization that Islamic fu nda­ A sure indication of the Israeli which are little more than money­ mentalism of the Khomeini brand, as economic crisis and the ills of the so­ laundries would complement the witnessed in Lebanon , is a danger to ciety, wrote the Post in March, is the transformation of the city of Eilat into Israel's very survival. After the much­ pensioners' plight, with a very high a "free zone," officially discussed on touted Israeli-Iranian connections de­ rate of suicide among those living March 11. More than six levels oftax­ veloped under Begin and Shamir, alone . This is also the stratum most ation effective in the rest of the coun­ through then-Defense Minister Ariel affected by the general collapse of try would be abolished in Eilat, which Sharon and his secretary . Ya'acov health care . There are no more than aims at attracting tourists and such in­ Nirnrodi , this is a welcome change . 6,000 hospital beds to receive sick el­ dustries as high-tech assembly, spices, However, there is nothing com­ derly persons; more than 2,000 people jewelry, and cosmetics--certainlynot parable going on in the realm of Is­ are now awaiting hospitalization, but the kind which can re-launch the Is­ rael's economy-·an issue on which no additional facilities are planned. raeli economy, but just the kind want­ the nation's survival is just as much at Nothing is expected to change ex­ ed by the economic consortium led by stake . cept for the worse. When confronted Max Fisher and EdgarBronfman , npw Finance Minister Yitzhak Modai with several thousand pensioners ruling over Israel. wants to impose a set of new austerity demonstrating against him, Modai fled Only one minister daredto oppose laws as soon as possible. Hardest hit his office building through a back door. Israel's transformation into a casino will be the layers of the Israeli popu­ Economic Minister Ya' acobi met with gambling paradise. Yitzhak Navon, lation that built the country: pension­ a delegation of demonstrators, and the former President and education ers. According to Modai's plan, re­ promised to refer the matter to the minister, warned that "casino gam­ tirement age for women will be post­ prime minister. However, since then, bling" in Eilat would be the first step poned from 60 to 65, while pensioners it has not been raised with the special toward casinos throughout Israel. The will actually be taxed like normal economic cabinet, which instead, at proposal was quashed for the time wage-earners. This is double taxation, its last session on April 2, discussed being, but there is little doubt that Is­ inasmuch as pensions are based on the one of Ya' acobi' s latest ideas: the cre­ rael is now moving toward the kind.of taxes paid by the wage-earner during ation of a financial mechanism to society which has no room for employment years . "launder dirty money," as Radio Je- pensioners.

EIR April 23, 1985 Economics 17 •

Transportation by Liliana Gorini

Visentini bankrupting aerospace? tries. So the state, being the owner, is By the time the notorious/manceminister is through, Italy will preventing the purchase of the ma­ have lost the basis/or contributingto the SDI. chines it itself produces." This apparent incongruence finds its explanation if one considers that Finance Minister Bruno Visentini does not work in the interest of the Italian state, but for the private interests of the Venetian oligarchy, which has wanted to rid itself of the encumbr­ ance of theItalian nation-state for more Internal revenueagents aregenerally zogiorno"region in the south, and em­ than a century. As president of the not very popular in Italy, as they are ploys more than 6,000 workers in Cini Foundation in Venice and former not in the United States. But this time, Campania alone, is now threatened president of the computer giant Oli­ Finance Minister BrunoVisentini has with bankruptcy because Visentini has vetti, Visentini views the economic ,really gone too far. "discouraged the expansion of the in­ crisis as only an opportunity to impose He became infamous in January dustry" with heavy and unjust fiscal a "post-industrial" society controlled when, against the will of most parties measures which reduce revenues and by the interests behind Olivetti. He inside the government except for the preventany investment. has no intention of seeing Italy's econ­ Communist Party, he imposeda fiscal Spokesmen for many of the aero­ omy flourish again as a result of the package aimed at punishing the "more space firms present at the Naples con­ industrial revolution implicit in the privileged categories," shopkeepers ference complained about the heavy country's participation in the U.S. and other self-employed family busi­ tax, which "forces them to buy the Strategic Defense Initiative. nessmen, who then startedto go bank­ most expensive liter of gasoline in the In point of fact, many of the aero­ rupt en masse. The shopkeepers' as­ world: 2,000 lire [more than $1]." space firms now under indirect attack sociation estimates that by the end of The organizer of the conference, by his office, including Aeritalia, the year, 1 ,200,000shops will have to Enzo Impronta of the National Pilots' Agusta, and Partenavia, build light shut down becausethey cannot afford Association (AOPA), explained toE1R airplanes for civilian use, but also mil­ to pay 40% of theirincome to the tax that the fiscal attack against the aero­ itary craft andacquisition and tracking office. space industry, already forced to systems which would be Italy's con­ He became doubly infamous due shorten work hours, is occurring "in­ tribution to the SDI. If Visentini to his introduction of an unconstitu­ directly," by means of preventing po­ chooses not to opposethe SOl in open tional clause into his fiscal package, tential buyers from purchasing air­ political battle, he does quietly attack "inductiveassessments ," which imply planes. The internal revenue agents the industrial base without which Italy that a citizen, whatever his tax-state­ determine the income of an airplane could play no role. ment says, can be taxed for whatever owner according to "how many flight That is why Visentini is hitting amount spies employed by the tax of­ hours" he has during the year, and aerospaceso hard, and one can besure fice assert to be his real income, and since the income definition is com­ that rather than correcting the appar­ that a taxpayer can go to jail on the pletely excessive, and "also wrong," ent "mistake" in calculating the in­ basis of the meresus picion that he is a according to Impronta, "nobody can come of airplane owners, Visentini tax-evader. afford flying or buying airplanes will only increase the financial pres­ But now Visentini is taking aim at anymore." sure on these industries, particularly the nation's aerospace industry. On The editor of the magazine Vo­ on those which will be assigned to March 30, the economic daily Jl Sole /are, Franco Giaculli, added that as a work on defensive systems key to the 24 Ore reported on a national confer­ result of the Visentini measures, "we strategic defense program. ence of the aerospace industry in Na­ have a terrible situation, with 50,000 Visentini may indeed be going too ples. According to II Sole, the Italian flying hours less this year and a lot of far, for in this, he certifies himself to aerospace industry, "an industrywhich firms on shorttime ." The absurdity of benot only a threat to Italy's economic is particularly qualified in production the situation, as Giaculli emphasized, well-being, but an immediate national and know-how, especiallyin theMez- is that "these are mainly state indus- security threat.

18 Economics EIR April 23, 1985 Banking by Kathy Wolfe

The new Third World debtors: you! The myth of the recovery is seen America's working people have become the international mostclearly inthe lootingof the wages bankers' new debt-pyramid victims. of the displaced workers, 30% of our workforce, which is most vicious. As described in the article on page 4, these are the workers who lost jobs at one rate , and were recycled and down­ T he non-existence of the Volcker are only repaying an average of 12% graded to lower-rate jobs during the recovery is seen most clearly in the of their principal per year in addition "recovery. " fact that the U.S. workforce has re­ torepaying interest. The skyrocketing For example, the Bureau of Labor placed the Third World as the biggest of this number has more than twice Statistics in an unpublished report debtor to the U.S. banking system, outstripped the nominal wage bill for states that 45% of the 7 million work­ withover $2, 175 billion in household the industrial workforce, which in in­ ers reemployed took a wage cut, and debt, compared to the entire Third flated nominal dollars rose from 40% of them reported weekly earn­ World debt of some $400 billion. To­ $196.4 biilion to $492.3 billion dur­ ings of 20% or more below the jobs tal households' outstanding debt has ing the same period. (graphics, p.9). they had lost. The average wage of the doubled since 1977, the last year of Consumers' interest payments reemployed worker fell from $2621 stable postwar interestrat es. alone rose duringthe same period from week at his old job, to $250/week at The U.S. consumer used to be a $59.4 billion to $420 billion, that is, .. his new job. net provider of funds to the banking by 1984, they werejust aboutequal to This would reduce the gross wage system in the form of deposits, which the nominal industrial wage bill. bill for this entire category of workers consumers gave to the banks at a much Apparently, the overall U.S. in­ from $144.6 billion in January 1979, lower rate than banks made loans to dustrial wage bill rose, if the Depart­ to $84 billion in 1984. The real num­ consumers. This has now shifted dra­ ment of Labor is to be believed, from ber, as calculated in the aforemen­ matically. U. S. bank lending abroad $196.4 billion to $492.3 billion in cur­ tioned article, of such recycled work­ slowed from $100 billion a year in rent dollars, during the 1972 to 1984 ers was at least 14 million, so the 1981 to a tridde in 1983 and zero in period. But this is deceptive. First of amount lost to theirwage bill must be 1984. Without the consumer debt all, purchasing power did not rise at doubled. This shows a reduction in bubble, Citibank, Chase Manhattan, all, and indeed dropped by5% during the wage bill by recycling alone, of etc . would have no business to con­ that same period, according to the De­ $121 billion (current dollars) during duct, and no customers to pay interest partment's own figuresfor wage infla­ the 1979-84period. to them. tion. Their own numbersshow that in This figure is about equal to the One of the major reasons for the 1977 constant dollars, the industrial rise in U. S. consumer debt during the skyrocketing of U. S. consumer debt wage bill actually fell in a constant same period, some $120 billion, from has been the collapse of the wage sys­ sweep, from$227 .3 billion in 1972 to $265 in 1978 to $385 billion in Janu­ tem, which gives the lie to the recov­ $216.5 billion in 1984. ary 1984. ery. If working households can no Take a figure like that and com­ This looting of the wage bill longer support themselves on their pare it to $420 billion paid in interest through displacement particularly wages, just what has recovered? The and $780 billion paid inprincipal alone downgraded the most productive, realreduction from 1972 to the present by consumers in 1984. heavy industrial sections of the labor of productive households' earned in­ From this must befurther subtract­ force, the BLS reports . Wages for the come, in the form of wage reductions, ed all sorts of "wages" which are in­ average manufacturing worker were has forced the average American to cluded in the figures, but which the reduced from $270/week to $2521 use credit, at 18-24% rates, instead of workforce never sees or gets to con­ week, on average. Machinery work­ wages, to survive. sume. These include, foremost, taxes, ers wages' dropped from $330/week This has led to a situation where which average 25% for this wage to $284/week. Wages of autoworkers U.S. households' annual debt-service bracket; padded benefitpackages such dropped from $374/week on average payments on consumer debt have ris­ as pension plans, which the workers to $302lweek, a reduction in the auto en from $178 billion in 1972 to $780 never collect because their jobs turn industry's labor bill from $6.1 billion billion in 1984, assuming consumers over before collection time, and so on. to $3.2 billion.

EIR April 23, 1985 Economics 19 Science & Technology

Thchnology to win the war on drugs : Is there the political will to use it? by Marsha Freeman

In a speech presented to a seminar in Mexico City on March 1.75 micronband of the infrared part of the electromagnetic 13, EIR 's Contributing Editor Lyndon LaRouche outlined spectrum.This indicates their specific, identifiable signature. measures for a "total war" on the international drug traffick­ The remotesensing system designed for Mexico was able ers . Among his recommendations was the use of satellites, to scan 12,000 square miles of land per day, or the entire aircraft , and space-age communications technologies to lo­ country every 15 days. Since the cannabis plants grow for cate and destroy "every field of marijuana, opium, and co­ 120 days, this high frequency of coverage makes it possible caine, in the Americas, excepting those fields properly li­ to "see" fieldsa few times beforetaking any action. censed by governments ." In 1982, the State Department funding for the recom­ We present here a review of the technologiesthat exist to mended follow-up to this program was cut off, and at the carry out this plan. same time, Drug Enforcement Administration acting admin­ Between 1972 and 1982, the U.S. government, in ajoint istrator Francis Mullen, of the FBI, quashed the program. program 0 the State Departmentand the National Aeronautics This leftthe Mexicans with a complete remote sensing system and Space Administration, developed new remote sensing they do not have the money to operate. For some tens of techniques which were proven successful in locating illicit millions of dollars per year, this system could be locating drugs. Airborne sensing systems, combined with Landsat most of the illegal drugcrops in Mexico. satellite data, could pinpoint all significant opium poppy, In November 1980, the Colombian Minister of Justice cannabis, and coca crops worldwide. requestedinformation from the U.S. embassy in Bogota, on Yet this capability is not being used, even in nations such the use of remote sensing technology to determine the scope as Mexico and Colombia which have asked the United States of illicit cultivation of cannabis and coca, as a prerequisiteto to help them in their war on drugs. If the United States decides initiating a herbicidal eradication program. Yet after the fea­ to escalate its current war on drugs to include destroyingthe sibility of using the remote sensing technology to aid the crops in the ground, it can activate the international agree­ Colombian effort was demonstrated, no funds were forth­ ments and remote sensing systems already available to ac­ coming to implement the program. complish the task. The forward to the 1980 Final Report by NASA on the On March 29, 1978 the United States and Mexico signed Curb Illegal Narcotics project states that at the end of the a Memorandum of Understanding to develop an "advanced program, "all scientific and technical aspects of the project airborne data collection and ground data processing system have been judged successful by both governments." The for use by the Mexican government in identificationof opium benefits of using the technology "had scarcely begun to be poppy fields in Mexico." A total of$7.5 million was allocated fully realized" at that time. for this effort. The report stresses that "perhaps the real success lies in The program, called Curb Illegal Narcotics, ran for two the mutual cooperation, respect and trust realized by this years, during which time the system was developed,Mexican merger of NASA technology, Departmentof State foresight, pilots and ground teams were trained, and the identification andMexican talent and desire to excel. The two nations have of the drug crops was proven successful. opened new doors for the transfer of technology, and both The sensing system consists of a multispectral scanner nations have benefited." attached under the wing of a jet plane. Its operationis based But comparethis to the war ofwords beingwaged against on the fact that every growing plant has its own radiative Mexico by the State Department, which is charging that the signature. When hit by sunlight, it reflects back radiation in Mexican government is not seriously interested in fighting a specific array of frequencies, unlike any other particular drugs. Though this destructive, lying campaign was curbed plant. as the White House, through Attorney General Ed Meese, For example , cannabis plants can be detected in the 1.55- has escalated the war on drugs, there has yet to be a move to

20 Economics EIR April 23, 1985 actuallyuse the Advanced Poppy Detection System in Mexico. over the past three years, the Departmentof State has request­ In many of the nations of Thern-America, the govern­ ed that NASA initiate a two-year follow-on effort with Mex­ ments themselves are heavily committed to the war on drugs, ico, during which advanced remote sensing technology will and since the growth of crops is illegal, many of the narco­ be applied to the multispectral scanner to significantly im­ traffickers are now cultivating smaller plots that are partially prove its sensitivity. In addition, the ground data processing hidden. For this reason, the use of airborne sensing systems system throughput rate will be improved beyond the current that fly only a few thousand feet above the ground is indi­ 200+ equivalent Landsat frames in 72 hours by the incor­ sensable for the war on drugs. poration of an array processor. The follow-on activity will In nations such as Iran and Pakistan, where the govern­ allow continued transfer of remote sensing technology be­ ments either sanction or ignore the growing of illicit drugs, tween the United States and the Governmentof Mexico. the fields are so large, that they can be identified by space­ based Landsat systems, with a lower resolution. Combining From the "Remote Sensing FeasibilityStudy: Colombia, Fi­ thesetwo capabilities, all of the significantillicit drugscould nal Report," National Space Technology Laboratories, be located. NASA , January 1983 . Then all that is needed is the political decision to destroy the crops, and cut off the source of this $400 billion plague Conclusions: against the people of thisworld. a. Adequate ground observations of Cannabis were made to positively state that detection by electro-op­ Documentation tical remote sensing is feasible. b. Additional ground observations of Coca fields are requiredto assess variables such as ground cover, From the "Final Report, Curb Illegal Narcotics," National soil type, slope, competing vegetation, etc . Space Technology Laboratories, National Aeronautics and c. Remote sensing is invaluable when more con­ Space Administration, December 1980. ventional methods, such as visua reconnaissance, are unsuccessful. Through a Memorandum of Understanding (MOU) with the • At present, visual reconnaissance would be ex­ Department of State , NASA has been providing assistance tremely successful in Colombia, as no attempts to since 1978 whereby advanced remote sensing and computer conceal fields or to resort to small plots to avoid rec­ technology have been applied to an on-going cooperative ognition were observed. controlprogram with Mexico. • If an effective eradication campaign currently The primary objective of the MOU was to develop and existed, all fields observed during the five-day visit transfer to the Government of Mexico an Advanced Poppy could be located and destroyed by conventional Detection System (APDS). techniques. In January of 1980, the completed APDS was delivered • However, said campaign would force a change to Mexico City. The system consisted of an airborne data in farming techniques [to smaller plots to avoid de­ collection platform, made up of a high-altitude, high-perfor­ tection-ed.], which would justify the use of remote mance aircraft modified for remote sensing applications, a sensing in 2-3 years, roughly the time required to very high resolution multispectral scanner and associated design and build a remote sensing system. data recording equipment, a ground-updated inertial navi­ gation system, anda largef ormat aerial camera, plus a ground Although no decision was made relative to a potential data processing system capable of processing large volumes Phase 3 of the project in which NASA would develop a of resulting aircraft data in a very shorttime period. complete Cannabis/Coca detection system for Colombia, it More than 225 man-weeks of training were provided for was obvious that such a system was not required at the 24 Mexican personnel through technical workshops con­ present time. Remote sensing would prove valuable in the ducted at all hardware manufacturers' facilities, through years to come, however, if an effective eradication cam­ hands-on experience with the interim system in Mexico and paign, using visual recon in a search-and-destroy effort sim­ with the advanced system at the National Space Technology ilar to that employed by Mexico for poppy eradication in Laboratories prior to transfer. the mid- 1970s, was currently in place in Colombia. The CIN project was concluded on September 30, 1980, Consequently, the Remote Sensing Feasibility Study in as scheduled. All technical aspects of the project were com­ Colombia concluded withthe successfulcompletion of Phase pleted as specified within the planned schedule and funding 2 of the project. The study clearly demonstratedthe potential levels, and the ability of the total system to perform the for effective application of remote sensing techniques and designed task has been successfully demonstrated by Mexi­ served as a necessary first step in evaluating the eventual can personnel. use of an advanced, highly automated concept for broad Based on the project results and the extent of the activities area illicit narcotics control.

EIR April 23, 1985 Economics 21 BusinessBrief s

Food& Agriculture ternational Monetary Fund, in dictatingU.S. U. S. dollar or any of the European national economic policies during a speech to currencies. Salmonella outbreak hundreds of top U.S. and European bankers At a meetingin Madridthe week of April at Johns Hopkins School of Advanced and 8, the European section of the Socialist In­ shows dairy breakdown International Studies in Washington on April ternational discussed the monetary decou­ 11. The speech was made days before the piing of the Western European economies The largestoutbreak of salmonella food poi­ opening of the IMF's interim committee from the dollar. The ECU, it proposes, soning in u.s. history--<:arried through milk: meeting in Washington on April 17. should become an internationalreserve cur­ from a Chicago processing plant-shows the Roll said that due to political consider­ rencyequal to the dollar and the yen. deadly collapse process under way in the ations, the IMF would probably not play a The "Commission on French-SovietCo­ milk supply. Two deaths have been linked direct role in shaping U.S. economic poli­ operation"met on April 6-7 and decided that to the salmonella outbreak in five states. cies, but would wield influence through "in­ economic exchanges between France and lliinoispublic health departmentofficials said directmetho ds, such as through the Interim the U.S.S.R. will be increased by 4 billion that 2,827 cases of food poisoning were re­ Committee and at the Bonn summit." Roll, francs in the coming year, much of it de­ ported, with 2,214 confirmed. who criticized the U. S. ' s "vast expansion­ nominated in EeUs. France's trade deficit " All the victims had drunk 2% milk: sold ary economic policies, stressedto a report­ with theSoviet Union reached FF5.2 billion by the Jewel Co., Inc., and produced at the er later that "the IMF must be tremendously this year due primarilyto the decline in So­ Hillfarm Dairy for distribution to five mid­ interested with the U.S. economy, because viet purchases of French capital goods­ westernsta tes. of its influence on the world economic from FF 7.4 billion in 1981 to only FF 0.8 The media played up possible sabotage, situation. " billion this year, France becoming mainly a which is not improbable given the social Roll called for a new world monetary buyer of Soviet gas. The projects so fi­ terrorism tactics seen in Europe and else­ system based on the Moscow-dominated nanced will include a Soviet steel complex where in the form of poisoned candy and ECU (European CurrencyUnit) , andtermed valued at $1 billion. oranges. It is difficultfor salmonella to sur­ the growth of the European Monetary Sys­ vive the pasteurization process, tem and theincreased role of the ECU "very However, the Illinois case follows a pat­ positivedevelopmen ts," and added: "A more tern of many smaller outbreaks of bacterial effective EMS might formanother pillar on Debt/or Equity disease over recent months, including from ' which . . . the international monetary sys­ airline food vendors and other bulk food tem" can be rebuilt. Roll said that: "The Ve nezuelan President suppliers. dollar won't cease overnight to be the most March 31 was the end date for the 15 important international currency , but other blasts asset grab month USDA "Dairy Diversion" program­ currencies, including the ECU, will certain­ the unprecedented program in which milk ly take on a greater and greater role" in in­ "It is absurd for Latin America to have be­ output and dairy cows were re!}ucedby fed­ ternationalmark ets. come a net exporterof capital," Venezuelan eral payments to farmers of $10 a month for President Jaime Lusinchi said to David every 100 pounds of milk not produced. Rockefellerand a roomful of Rockefeller's Hundreds of thousands of top milk cows banker cronies in New York on April 11. went to slaughter. By this summer, regions Lusinchi warned of "extra-continental im­ like the southeast will not even be able to plications"-read, Soviet advances-ifthe "import"milk from Wisconsin. looting of the continent is not halted. "The only recoverable credits are those whose Currencies payments and interest schedules permitthe debtors to produce the wealth necessary to Oligarchism Soviets want ECU maintain a stable, progressive society.... We are confrontinga problem of such inter­ Kissinger partner instead of dollar national dimensions that democracies, eco­ nomic stability and even the keeping of the wants IMF diktat The Soviets want the European Currency peace are at stake." Unit as the central trading currency for fu­ Venezuela is under heavy pressurefrom Lord Eric Roll, a director of Kissinger As­ ture purchases in Western Europe. Accord­ Rockefeller-linked financial groups to tum sociatesand chief of Warburg Bank of Lon­ ingto the Soviets, the ECU (EuropeanCur­ over equity to foreign creditors as payment don, endorsed an expanded role for the In- rency Unit) is "more calculable" than the for debts (see page 12).

22 Economics EIR April 23, 1985 Briefly

• THE SECOND government se­ curities firm in six weeks, New Jer­ sey's Bevill, Bresler & Schulman Asset Management Corporation, has folded, with an almost $200 million loss for BBS's creditors, including many savings and loan institutions in Ibero-America llIinois, Ohio, New Jersey, Pennsyl­ Austerity vania, Maryland, Arkansas, and oth­ er states. The U.S. Army's Central Ecuador chief puts IMF orders draconian Banking and Investment Fund, based democracy before IMF cuts on Argentina in Alexandria, Va., suffered an $ll million loss due to the bankruptcy.

International Monetary Fund economic pro­ The Argentine government is about to im­ • THE IMF FRETS over its main grams may be incompatible with democra­ pose a new draconian austerity regime, or­ antagonist: "There is only one group cy, declared Ecuadorean President LeOn dered by the International Monetary Fund. that seems to be actively mobilizing Febres Cordero in a speech in Princeton, Including new hikes in fuel and public ser­ oppositionto the Fund. It is called the N.J., on April 8. Febres, a partisan of Fried­ vice rates, the measures"punish" provincial Schiller Institute, part and parcel of manite economics who has never breathed governments which have dared to raise sal­ the Lyndon LaRouche organization," open criticism of the IMF before, noted that aries above official guidelines, by reducing a top IMFofficial told a caller. "They the IMF had almost pulled the rug out from allocations of money to them. are building up quite a campaign under Ecuador's recent debt renegotiations Credit to state-run companies will be against the IMF. They print the phone by insisting on a radical free trade dogma. dramatically reduced, forcing them into the number of our managing director. Do international institutions "understand our private "free" market where interest rates, Their group in Sweden distributed reality?" he asked. "Is the adjustment effort compoundedannually, are at 1,200% . With flyers against Mr. de Larosiere. We which some countries are making, compat­ a March inflation rate of 27%, the cost of spend a lot of time answering phone ible with democratic government?" the averagefamily 's monthly market basket calIs from all over the country from In response to a question from EIR , is 105,000 pesos-triple the minimum their supporters." wl-ich noted the recent events in Sudan, monthly wage. Febres Cordero reiterated that he would • EAST GERMANY may get new choose democracy over the IMF, if there credit lines from West Germany.Ac­ wereno other choices. InternationalFinance cording to unconfirmed rumors, the Bonn government plans to extend in­ Group of 30 plots terest-free credit lines to East Ger­ currency blocs many from 800 million to 2 billion Banking DM per year, to allow the G.D.R. to buy up to 85% of its orders in West Ex-president of ABA: The "Group of 30" held a secretive meeting Germanyon credit. at the Perugia center of the Bank of Italy 75-150 banks may fold beginning April II, timed to coincide with • THAILAND has just cancelled the IMF Washington meeting the next week. two major infrastructure projects in The Midwestern United States will face a The group, a top-secretprivate financial ma­ an austerity move: The $2.5 billion "regional collapse" if the farm economy fia, is headed by self-admitted Sufi and for­ integrated steel complex in Prachuab continues to deteriorate, the immediate past mer IMF head JohannesWitteveen. Khiri Khan province intended to pro­ president of the American Bankers Associ­ The G-30 refused to disclose details of duce 1.6 million tons/year of flat steel, ation warned on April 5. Robert Brenton, their agenda to the public. and a rock-salt · soda-ash fertiliZer presidentof Brenton Banks of Des Moines, A well-placed London bank source dis­ plant. Iowa, told a Chicago audience: "We could closed it would "discuss outlines of a deal see 75 to 150 [agricultural] banks go un� between the U.S., Japan and Europe to re­ • OIL IMPORTS for European der.. .in the next year or 18 months." solve the present world monetary impasse countries have risen in cost by 34% In an interview with Farm Journal on which is otherwise about to precipitate a since April 1983, according to the the farmcrisis, Brenton warned, "We could global depression."According to this source, latest report of International Energy easily see the complete economic break­ the agenda would focus on several inter­ Agency in Paris. Despite a fall in dol­ down of public services like schools, hos­ linked items to stem a new global banking larprice of oil, the rising dollarcaused pitals, and localgovernments due to the ero­ crisis: drastic U.S. budget deficit cuts; re­ a rise in local-currency prices for oil sion of the tax bases. There simply won't be moval of Japanese trade protectionism bar­ and grain, which are priced in dollars enough people left to pay taxes if no one is riers to allow the yen to rise on international on world markets. making any money and everyone else is exchange markets; and a decision by Euro­ going broke." pean central banksto reflatetheir economies.

ElK April 23, 1985 Economics 23 TIillSpecialReport

Joint war on drugs rounds up 'citizens above suspicion'

by Robyn QUijano

When President Ronald Reagan and Colombian President Belisario Betancur is­ sued a joint statement in Washington on April 4, they pledged "irreversible" dedication to winning the war against drugs. "Drug traffickingis a criminal activity that has no frontiers and can only be controlled by a combined effort of all countries . involved," they said. Hitting the banking structure which takes in hundreds of billions of dollars a year laundering drug money , they warned, "The financial power resulting from the enormous profits of illicit narcotics trade poses a terrible threat to democracy. " This joint resolve, targeting the financial powers that represent the "citizens above suspicion," the families that have run Dope , Inc . for centuries , is a decla­ ration of war with a strategy to win. It means the turnaround of years of lukewarm relations between the United States and the nations of Ibero-America, particularly since the Malvinas War, and sets the basis for the kind of collaboration which can destroy the real causes of the drug plague. The Presidents' historic pact was blacked out in all the major U.S. media, along with the details of the joint strategy that has already changed the face of law enforcement in the hemisphere. The media had done everything in their power to provoke a rupture between the United States and Mexico in March, before the Mexican government captured two of the top three drug bosses in the country, accused of murdering U.S. Drug Enforcement Administration (DEA) agent En­ rique Camarena and a Mexican counterpart. As the two Presidents were meeting , reports of a raid by 12 federal agents on the Philadelphia office of Shearson Lehman, a subsidiary of ShearsonJAmerican Express, for illegal money-laundering, was well noted in Ibero-American capitals. Other investigations, like those underway against the Bank of Boston and dozens of Florida banks for laundering of dope money, have been recognized throughout lbero-America as the most serious attempt ever made by the U.S. government to stop the multi-billion-dollar laundering industry, whose profits sustain the board of directors of Dope , Inc . Such actions , together with Colombia's decision to dynamite illegal airstrips used by the drug traffickers and to eradicate all marijuana

24 Special Report EIR April 23, 1985 The Mexican army raided a huge marijuanaplantation in Chihuahua in November 1984,belonging to mafia kingpin Rafael Caro Quintero. Peasants were kept on the plantation as virtual slaves. Now Caro Quintero is under arrest and is "singing" -fi ngering the bankers and other "citizens above suspicion" who are financing the drug trade .

Mexican Attorney General·s Office fields with herbicides, consolidate the in-depth offensive that tancur in the continental anti-drug .offensive which formally is already creating panic among the drug mafias and their declared drug trafficking a "crime against humanity," and in banker friends. the Contadora peace initiative for Central America. De la The escalation of the war on drugs reflects increasingly Madrid sent a message to Washington by praising Betancur's broad agreement among the governments of the hemisphere anti-drug efforts as "a model for the continent." . oh the necessity of a military approach to destroying the drug Relations between the United States and Mexico reached trade , which represents a financial, political, and military a low point in March when DEA agent Camarena was kid­ power greater than that of many nations. A document by naped and Francis Mullen, then head of the DEA, charged Lyndon LaRouche, titled "A Proposed Strategic Operation the Mexican government with complicity. After the border against the Western Hemisphere's Drug-Traffic" (see EIR, was sealed-<:ausing economic havoc on both sides-de la April 2), was presented on March 13 in Mexico City and Madrid spoke personally to Reagan and arranged a meeting distributed widely among government, military, police, and between Mexican Attorney General Garcia Ramirez and U.S. political layers of all nations of the Americas. Attorney General Edwin Meese, which took place at theend Besides recommending that the war be fought with the of March. Meese praised the Mexican government's anti­ weapons of war, with the most advanced technologies and drug fight, and began patching up what Mullen had tried to total cooperation among police and military forces, while dismember. respecting the sovereignty of each nation, LaRouche pro­ Since the arrestsof top mafiosibosses Rafael Caro Quin­ posed an assault on the financial power structure of Dope, tero and Emesto Fonseca Carrillo, the top suspects in the Inc.-and this is already in various stages of implementation murder of Camarena, on April 4 and 8, the structure of in the United States, Mexico, Colombia, and Venezuela. decades of organized crime and its banking and financial LaRouche recommended "a system of total regulation of infrastructure has begun to topple. The two owned airlines, financial institutions, to .the effect of detecting deposits, out­ hotels, restaurants, industries, and systems of communica­ bound transfers, and inbound transfersof funds, which might tion and armaments that compare with those of the army . be reasonably suspected of being funds secured from drug Fonseca, known as "Don Neto," is said to provide 60% of trafficking," and the confiscation of all real estate, business the heroin consumed in the United States, while Caro, who enterprises, finanical institutions, and personal funds of drug owned the huge marijuana plantation in Chihuahua that was . traffickers. discovered last November, is said to have a $3 b�llion per­ Betancur visited Washington after conferring with Pres­ sonal fortune. Caro claims he lost $50 million when the ident Jaime Lusinchi in Venezuela and President Miguel de Mexican army burned eight tons of marijuana that it found la Madrid in Mexico. Both men have collaborated with Be- when it liberated over 2,000 undernourishedpeasants whom

EIR April 23, 1985 Special Report 25 I the mafiosihad enslaved. Reagan-Betancur Joint Statement Jailing two of the top three drug traffickersin the country required a sweeping clean-up of the Federal Judicial Police, the Federal Security Police, and certain layers of the military. Caro Quintero and Fonseca, besides charging one another with the murder of Camarena, are providing lists of their contacts and money-launderers, the most scandalous of which is Aracadio Valenzuela, the ex-head of BanPacifico and the Mexican Bankers' Association. Caro Quintero and Arcadio Valenzuela are tied into the Mexican tourist industry, Hyatt, Holiday Inn, Fiesta Americana, and the famous-Los Tules tourist complex. Since the crackdown on the drug mafia, Presidents pledge some military and police suspectshave fledthe country, and there is a glut on the market of real estate and other mafia close collaboration holdings, asthe culprits tryto liquidateand runto safe territory. The attorney general's office is investigating the bank This is the text of the Joint Statement on Narcotics issued by accounts of suspects. There is a special team analyzing bank the President of the United States and the President of the accounts, and aid had been requested of foreign banks to Republic of Colombia in Washington, D.C. on April 4. identify mafiaaccounts and freeze them. During our meeting today, we discussed the drug scourge The new alliance which afflicts both our nations, the Hemisphere at large, and LaRouche ended his War on Drugs strategyproposal with mankind generally. We reviewed the measures our two na­ the following approach to resolving other crucial problems tions are taking and will take, separately and together, to in thehemisphere: "By fightingthis necessarywar, as allies, combat the production, trafficking, demand for, and use of we may reasonably hope to improve greatly the cooperation illicit narcotics. among the allies, in many important matters beyond the im­ Our nations recognize the terrible effect drug abuse has mediate issue of this war itself." on the health and well-being of individual users, as well as The Reagan administration proposal for a cease-fire in more generally on the economies and public morality of both Central America, and the President's approach to the Presi­ societies. It is especially deplorable when the drug poisons dents of the Contadora nations, demonstrates precisely this arefound among the young and even small children. phenomenon. The next joint effort must be to solve the eco­ Drug trafficking is a criminal activity that has no frontiers nomic crisis, and get the nations devastated by drugs and debt and can only be controlled by a combined effort of all coun­ back onto the track of industrial growth. Beyond the joint triesinvolved . We have shared ourconcern that the financial resolve against the drug mafias which the U.S. and Colom­ powerresulting from the enormousprofits of illicit narcotics bian Presidents expressed, President Betancur also focused trade poses a terrible threat to democracy in the Americas. on the economic and financial crisis, in hopes of extending Our mutual dedication to the anti-narcotics struggle is an cooperation between the United States and lbero-Americato integral partof the close relations that exist between our two that sphere as well. nations. We both see a vital need to enlist the cooperation of In a speech at the White House, Betancur defined such a othergovernments in this intensifiedeffort . new basis for hemispheric relations, emphasizing "the link We understand that the gravity of the problem is a con­ between external debt and democracy." He requested new sequence of both illegal production and distribution of drugs multilateral negotiations to findnew solutions. "We believe," as well as growing demand. We also understand these factors he said, "that the time has come ...for the United States are closely related and all efforts to suppress one without at and Latin America to redefine the parameters of their mutual the same time taking equally vigorous actions against the relations. We need ... a new underStanding, a common other will be fruitless. For these reasons, each governmentis doctrine, an alliance for peace; with the determination to go prepared to assume its responsibilities, eliminating both il­ from mere tolerance that has marked the relations between legal productionand drug abuse. Latin America and the United States to the formulation of a The United States recognizes the effort, the commitment new scheme of open, constructive and fruitful cooperation," of resources and the sacrifices that Colombia has made in which would "not only improve economic relations in the destroying crops and laboratories, seizing shipments and hemisphere," but also mean "the adoption of politicalob jec­ bringing suspected drug traffickers to justice, including the tives to defend democracy, which is thegreat spiritual value extradition of traffickers accused of narcotics crimes in the of American civilization." United States. For the United States' part, enforcement activ-

26 SpecialReport EIR April 23, 1985 ities are increasing and prevention and education programs are having positive results in reducing drug abuse. We are in entire agreement on the need to continue these intensified efforts and to ensure the closest possible collabo­ ration in the war against narcotics. Both nations reaffirm respectfor our mutual legal obligations to extradite traffick­ ers under our existing treaty , and will remain in close contact to periodically examine and improve the framework of ou.r Betancur: 'We must legal and law enforcement cooperation as necessary to adapt to changing conditions as we learnfrom our experiences. We intensifythe bat tle' have noted with satisfaction the beginning of new areas of cooperation against narcotics. Mrs . Reagan and Mrs. Betan­ Extract from Colombian President Belisario Betancur's cur, who met earlier today at the White House, look forward sp eech before the House Foreign Affairs Committee April 3 , to their meeting at the First Ladies' Conference on Drug 1985 . Abuse, which will be held in Washington on April 24th. We are confidentthose meetings , in which they will play leading Drugsare a two-way tragedy: They weaken our two countries roles, will have a lasting impact. and destroy values that are the foundation of our moral and Colombia renews the commitment to fight against drug physical patrimony. trafficking at all levels in order to destroy the crops, the We are all daily victims of this plague. laboratories where drugs are processed, to interrupt the trans­ Our two governments give no quarter in the struggle portation to the U. S. market and to see that those responsible against drugs. Colombia has done it, and will continue to do for the trafficking are severely punished. The United States it relentessly, even if with material and logistic limitations. commits itself to increasing its efforts to diminish use and We have reached a point of no return, because we wish to be demand of drugs, destroy crops and to strengthen its support on the side of the human condition. And we are disposed to for the war against narcotics. pay the price, even of our own lives, which would be a small The cost of success in the past has been high. It has sacrifice to free humanity from this scourge. incl�ded the life of a Colombian Cabinet Minister, Rodrigo But we do not wish to feel alone in this struggle, in which Lara Bonilla, and law enforcement officers from both coun­ you, too, take part: For here is the greatest center of drug tries. We cannot allow such sacrifices to have been in vain. consumption. The tremendous wealth proceeding from drugs, We pledge to each other to revitalize and intensify our efforts is deposited here . North American banks launder fantastic to destroy the trafficking network. Our decision is irreversi­ sums of money and are barely punished. ble, our dedication total. Nothing will deter us from this fight.

Ronald Reagan Belisario Betancur Extractsfrom President Betancur' s sp eech at the the dinner hosted by Betancur in honor of Vice-President George Bush President Reagan's fa rewell statement to President Betan­ on April 3. cur, April 4 : The drug traffic has become an international activity with . . . Mr. President, your personal courage and dedication are ramifications on all continents. This traffic, managed by a also evident in your government's all-out battle against nar­ sophisticated network that has no native land and which moves cotics traffickers. You have my unbounded respect for what its activities to different countries as it confronts problems you're doing. with the forces of law and order, is one of the most serious The production of illicit narcotics and the peddling of crimes that threatens the mental health, the moral health, the these drugs corrupt our societies, our children, and with political health of all mankind. The army and police of my them, our future. The struggle against this unmitigated evil country have seized hundreds of airplanes, vehicles and boats: unites all good and decent people. . . . We have destroyed enormous coca and marijuana crops and In the United States, the fight against drug use has a top dismantled the largest cocaine laboratories in international priority . We're trying to help those on drugs get off, to history. . . . It is a struggle from which we cannot tum back prevent those not involved from starting, and we're doing at any price-no matter how high-in spite of terrorist, po­ our best to smash the trade in illegal drugs. This matter is of litical, and economic threats, even the price of our lives. But vital concern to us both, and in finding solution to the prob­ we must intensify the battle against drug consumption: As lem, Colombia and the United States are full partners, as we long as consumers disposed to pay any price and banks that affirm today in our joint statement on narcotics. support them, exist, it is not going to be easy to eradicate this Theillegal drug trade , as we both agree, is a cancer .... horrible crime fromthe planet.

EDR April 23, 1985 Special Report 27 Arrest of Caro Quintero points to the heart of dlUg lUnning in lbero-AInerica by Hector Apolinar

The confessions of Rafael Caro Quintero, who was arrested Quintero's money and of managing his investments in 300 April 4 as the suspected assassin of U. S. Drug Enforcement firms which had their main officesin Jalisco. Administration (DEA) agent Enrique Camarena Salazar, could The Corderos disclosed Caro Quintero's whereabouts in lead to the dismantling of one of the most important drug and Costa Rica, wherehe had escapedon March 17, three weeks money-laundering networks in the Westernhemisphere . after the murder of DEA agent Enrique Camarena Salazar By April 8, Mexican authorities had already nabbed the andhis colleague, Mexican pilot AlfredoZavala A velar.The top figure of the Mexican drug underworld, ErnestoFonseca Corderos indicated thatCaro and his partnerscould be found Carrillo, with 23 heavily armed bodyguards, in a raid on a at the Californiaranch , located some 16 kilometers from San villa in Puerto Vallarta,near Acapulco. Fonseca, Caro Quin­ Jose, Costa Rica. tero's boss, immediately began to sing as loudly as Caro The ranch h�d been bought by Caro and an unknown Quintero himself had. Dozens of other drug-runners, state Iranian. Cordero also confessed that Caro had bought the and federal judicial and security police, and members of the firmPoliuretanos de Costa Rica, with Samuel Yankelewitz, army are implicated. A thoroughgoing sweep of the official brother-in-law of Costa Rican PresidentLuis AlbertoMonge . apparatus in the state of Jalisco is underway. Mexican au­ On April 8, Yankelewitz denied his association with the thorities say the U. S. side of the networks must also be Corderos to the Mexican press, but admitted he was their cleaned up. "We are confidentthat there will also be success­ partner"seven or eight years ago" when they arrived in Costa es beyond our borders ," said the attorney general's office. Rica. Caro Quintero was arrested with seven cohorts in Costa On various occasions the family of Monge's wife has Rica on April 4 at a ranch he owns near the capital. On April been accused of having relations with the group around ex­ 5 he was extradited to Mexico. He has been interrogated Israeli Defense Minister Ariel Sharon, a known associate of under direction of Florentino Ventura, chief of the Federal arms traffickers, real estate speculators, and international Judicial Police's narcotics division. mobsters once led by Meyer Lansky. Monge's career has Said governmentspokesman Francisco Fonseca Notario, been managedthrough his ties to Lane Kirklandof the AFL­ "It is a question of pulling the string of the huge ball of yam CIO, and to the State Department-AFL venture, the Ameri­ of corruption that covers the drug traffic on an international can Institute for Free Labor Development. Monge's other scale." To prevent leaks , only a select groupof investigators mentor, ex-President Pepe Figueres, invited drug and dirty know the names Caro is supplying, until the United States, money magnate Robert Vesco to Costa Rica, and defended Costa Rica, Peru, Colombia, and Spain can apprehend the him from U.S. law. suspects. Two U.S. buyers have already been murdered by In the investigations into Caro's arrival in Costa Rica, other mafiosi sinceCar o's arrest. neitherthe registration of the plane nor the flightby which it Caro confessed to owning the marijuana plantation found arrived in the country were found. Caro Quintero arrived in by the Mexican army in Chihuahua in November 1984, with the wee hours at Costa Rica's international airport, but the 2,000 enslaved, malnourished peasants. The 8,000 tons of only private flight registeredthat night was by a plane owned marijuana the Mexican authoritiesburned cost Caro $50 mil­ by theUnited Brands company , fromTegucigalpa, Honduras. lion, according to his own report. It had previously been said that Caro Quintero, upon Caro's arrest came after confessions by brothersEduardo escaping fromGuadala jara,flew to the city of Caborca, Son­ and Javier Cordero Stauffer, top businessmen in the state of ora, near the U.S. border, and then went by car into hiding Jalisco, one of Mexico's busiest financialand political areas, in the village of Gusave, Sinaloa, and from there to Costa which serves as a center for "laundering" dirty money for Rica. But some investigators think Caro Quintero got to Mexican drug-running. The Cordero brothers were picked Costa Rica in the United Brands plane. United Brands (for­ up in Guadalajara, Jalisco, on charges of laundering Caro merly United Fruit) has been linkedto drug trafficking since

28 Special Report EIR April 23, 1985 the early 1900s, and is part ofthe Bank of Boston interests, which are being investigatedfor drug-money-laundering. According to Caro's henchmen's confessions, he bought his Costa Rican property on the advice of his partner, "co­ caine king" Jose Ramon Mata Ballesteros, considered chief of the Colombian cocaine connection in Mexico. Mata Bal­ lesteros, a Honduran, was near capture in February but fled thanksto "someone's" protection. A chronology of Investments in Jalisco Caro Quintero had large investments in the Hyatt Regen­ the War on Drugs cy, Holiday Inn, and Fiesta Americana hotel chains, and mentioned the businessman and ex-banker Arcadio Valen­ Jan.22, United States: Narcotnifico, SA , Spanish-language zuela as one of his partners. Valenzuela was an important version of EIR bestsellerDope, Inc. , published by New Ben­ financierwith offices in Jalisco, who owned the Banpacifico jamin Franklin House. Book names names in top drug and bank jointly with businessmen from the states of Sonora, money-laundering networks North and South. Baja California, Sinaloa and Jalisco-the major drug-traf­ fickingstates in Mexico. In founding Banpacifico, Valenzue- Feb. 1-15, United States: Bank of Boston admits violating 1a shiftedhis headquartersfrom Hermosillo, Sonora to Guad­ currencyreporting require ments on $1.2 billion in cash from alajara, Jalisco. He held major investments in the Jalisco Swiss banks, also accepting illegal cash deposits from An­ hotel industry, buying the tourist complex Los Tules. In giulo organized crime family. Prosecutor William Weld im­ 1982-83 after the banks were nationalized, Valenzuela was plicated in coverup. investigated because the bank of which he was vice-director Feb. 5, Venezuela: On orders from the Cisneros family, was carrying out a drug-money-laundering operation origi­ named as "the Bronfmans of Venezuela" in Narcotrafico, nating in Guadalajara and carried out in Tijuana, with the SA , Venezuelan political police raid homes and offices of dollars afterwards moving to the United States via various EIR reporters in Caracas, seize copies of Narcotrafico, SA . exchange houses in Tijuana. After this affair, Valenzuela EIR journalists expelled within 48 hours . gave up his bank. But he continued in the hotel business, still linked to Fiesta Americana, owned by businessman Gaston Feb. 7, Mexico-United States: U.S. Drug Enforcement Azcarraga, related to the "creme de la creme" of moneyed Administration agent Enrique Camarena kidnaped in Guad­ families in Mexico. alajara, after two-month period in which Mexican authorities Ford is another important U.S. firm whose name ap­ had destroyed 170 hectares of poppies, burned $10 billion peared linked to Caro Quintero and the Corderos. According worth of marijuana, and arrested or detained 64 drug to investigations by two Mexican police agencies, the Cor­ traffickers. deros ran Ford Country Motors. Last year, Caro Quintero Feb. 14, Venezuela-United States: Venezuelan plane seized bought 300 Grand Marquis autos "as gifts." Ford is a dirty in Hollywood, Fla. with cocaine on board, confirmed as name in Mexico, because Ford dealers have been linked to belonging to Pepsi-Cola of Venezuela, run by the Cisneros such unsavory characters as Eugenio Elourduy in Mexicali, family which forced banning of Narcotrafico, SA . a candidate in the neo-Nazi National Action Party , and Man­ uel J. Clouthier, leading member of the PAN who runs the Feb. 16, Colombia-United States: Third-largest drug bust Ford dealership in Culiacan, Sin., and who was found with a in U.S. history. U.S. Customs confiscates Avianca airline warehouse full of marijuana in 1979; Don Pablo Bush, a key 747 jet, two days after the plane had brought 2,500 tons of figure involved in shady business deals who has a large Ford cocaine ($600 million street value) into Miami en route to dealership in Ciudad Juarez, Chihuahua. Montreal. Drugwas hidden in boxes of cut flowers; cut flower The role of lawyer Jose Rojo Coronado points toward exportsfrom Colombia often handled by Moonies' Unifica­ East bloc intelligence services. Rojo was the lawyerfor FALN tion Church. Puerto Rican terrorist Willie "No Hands" Morales, captured Feb. 18, Jamaica: Air Jamaica plane busted in Miami car­ after a shootout in Puebla in 1983, as well as attorney for rying 5,900 pounds of Jamaican marijuana. A second jet, members of the terrorist 23rd of September League which with40 pounds, seized on Feb . 22. Air Jamaica fined$13 operated in themid- '70s with support fromdrug-runners and million Jamaican dollarsby U.S. Customs. Jamaican Trans­ Cuban intelligence. When Rojo took Caro Quintero's case, port Minister Peamell Charles complains, "Jamaica cannot heexplained: "U .S. society is decadent, degenerate, corrupt, afford to pay these fines and have our ships and planes con­ and a danger to world peace. That country is a looter, ag­ fiscatedby foreign governmentsbecause of drug trafficking." gressor, and I think that if Mexico manages to make that society idiotic with drugs, that's great. " Feb. 18, Mexico-United States: New York Times reports ,

EIR April 23, 1985 Special Report 29 "American officials are seeking to damage Mexico's econo­ can-based ring reported smuggling of 15 tons of cocaine into my" by disrupting border traffic. United States yearly. 59 people arrested; two Peruvian bosses indicted. Feb. 26, Mexico-United States: Henry Kissinger's name surfaces in connection with Camarena kidnaping. March 22, Mexico-United States: Attorneys General Meese Feb. 27, Brazil: Brazilian Federal police, assisted by U.S. and Garcia Ramirez meet in Washington, D.C. Drug Enforcement Administration and Brazilian Air Force, March 27, Venezuela: Newspaper El Mundo reports Bank launch "Operation Eccentrico," largest anti-drug sweep in of Boston accepted "hot money" from top Venezuelan busi­ Brazilian history , using 600special agents in all major cities. ness and political figures. Feb. 28, Venezuela-Colombia: Meeting of the two coun­ Justice Minister Jose Manzo Gonzalez says drug traffick­ tries' military forces held in Maracaibo to place "cordon ers will henceforth be sent to jungle penal colony without sanitaire" against drug traffic along Colombian-Venezuelan benefit of trial, after several Venezuelan judges freed dope border. traffickers "for lack of evidence."

March 1, United States-Mexico: United States donates $20 March 29, Venezuela: President Jaime Lusinchi names anti­ million in aircraft to Mexico to assist in war on drugs. drug lawyer and journalist Bayardo Ramirez Monagas to head special presidential task force against drugs. Ramirez March 3, Panama: National Banking Commission of Pan­ had been sentenced to jail the same week by a judge he had ama cancels banking license of First Interamerican Bank of accused of collaborating with drug traffickers. Lusinchi urges Panama. Major stockholders are Gilberto RodriguezOre jue­ "certain quarters to get this message with perfectclarity ." la and Jorge Luis Ochoa, Colombians in Madridja il awaiting extradition to United States on drug-traffickingcharg es. Pre­ April 3, Bolivia: Anti-drug police stage the largest anti-drug vious owners of First Interamerican who sold bank to the operation on record, aimed at indicting hundreds of drug drugtraffickers are all former or currentemployees of Chase traffickersnamed by two traffickers arrested on April 2. Car­ Manhattan Bank. riedout jointly by agents of U.S. Drug Enforcement Admin­ istrationand Bolivian law-enforcement personnel, the arrests March 5, United States: In testimony before U.S. Con­ nail 12 drug traffickers transporting 1,171 kilograms of gress, Treasury Department official John Walker describes cocaine. Bank of Boston's actions as "consistent with money laundering. " April 3, United States: FBI, IRS , and U.S. Customs Ser­ vices agents raid Philadelphia offices of Shearson Lehman, March 5, Venezuela: Corrupt judge bans Narcotrafico, SA American Express, the second largest brokerage firm in the nationwide. United States, "in a case of money-laundering." Kissinger March 7, Mexico-United States: Peasants report discovery serves on Amex board. of bodies of DEA agent Camarena and another officer 24 April 4, Colombia-United States: Presidents Betancur and hours after "shootout" at ranch where they were supposedly Reagan issue joint statement of collaboration in war on drugs being held. after meeting in Washington, D.C. March 9, Colombia: National police capture a warehouse April 4, Mexico: Top Mexican mafioso Rafael Caro Quin­ of ether, a chemical used in refiningcocaine , in Medellin. tero, sought for Camarena murder, arrested in Costa Rica March 13, Mexico-United States: In a policy paper pre­ andextradited to Mexico the next day. Caro Quinterobegins sented to an internationalconference in Mexico City, Amer­ implicating accomplices in major narcotics trafficking ican economist Lyndon LaRouche demands "ruthless appli­ operations. cations of themethods and weapons of war" against interna­ April 6, Venezuela: Police seize 44,000 liters of acetone tional drug traffic. He says the drug traffic "has become an andether in Valencia, largest capture of coca-refiningchem­ evil and power government in its own right. . . . Law en­ icals in South America. Anti-drug commission head notes forcement methods, by themselves, will fail." LaRouche · Venezuela has seized record 220,000 liters in the past three outlines 15-point battle plan, beginning with joint military months. command for nations of North and South America. April 8, Mexico: The kingpin of the drug underworld, Caro March 15, United States: Ohio Gov. Richard Celeste de­ Quintero's boss Ernesto Fonseca Carrillo, is arrested along clares bank holiday for 71 savings and loan institutions after with 23 heavily armed bodyguards. Dozens of other drug dope banker Marvin Wamer' s operations bankrupt Home runners, state and federal judicial and security police, and State Savings. members of the army, are implicated. "We are confidentthat March 19, United States: Organized Crime Task Force of there will also be successes beyond our borders," says Mex­ Drug Enforcement Administration uncovers South Ameri- ican attorney general's office.

30 SpecialReport EIR April 23, 1985 Eradication programs, initiatives to help combat narcot­ ics trafficking, drug-related corruption, and the murder of Camarena, were among the issues dealt with in a "coopera­ tive spirit" during the five-hourmeet ing. "We have agreedto develop channels of communication for sharing information about corruption linked to drug trafficking and to take nec­ essary actions to deal with this problem," the two officials announced. Meese: Cooperation They also agreed on a Joint Law Enforcement Summit to be held sometime this summer andmeet to again in six months is the top priority to review progress. The Meese-Garcia Ramirez meeting, characterized by by Dolia EstevezPettin gell both attorneys general as "positive and fruitful," was a set­ back for those who spread the vicious lie that the Mexican governmentwas complicit in the murderof Camarena. For­ u.s. Attorney General Edwin Meese began his term by res­ mer FBI official and DEA chief Francis Mullen and other tating U.S. commitment to fightthe war on drugs with lbero­ DEA spokesmen had accused the Mexican government of America and not against it. The United States will give "top incompetence and corruption, bringing U.S.-Mexican dip­ priority" to developing working relations with other law­ lomatic relations to their lowest level in recent years. It was enforcement agencies in the hemisphere, Meese said on April not until President Reaganspoke by telephonewith Mexican I. In less than a month, Meese has held discussions with the President Miguel de la Madrid and both agreed on the need top law enforcement officers in Mexico and Colombia, and for a meeting between Meese and Garcia Ramirez, that ten­ with Colombian President Belisario Betancur, to map out sions began to ease. joint anti-drug measures. In a press conference after meeting with Betancur on Drug consumption immoral April 3, Meese called the discussions "extremelybeneficial ." Both Mexico and Colombia communicatedto Meese the Meese praised the Colombian government's strong anti-drug need to reducedrug consumption in the United Statesin order effort and pointed out that"they have even gone to the extent toassist the eradication of marijuana and coca cropsin Ibero­ of destroying by dynamiting the airfields, the airstrips which America. A serious attack on U.S. drug consumption has areused by traffickers ." been a long-standing request of lbero-American govern­ In reporting back to Colombia on his meeting with Meese ments, and was emphasized in Betancur's speeches. April 3 in Washington, Justice Minister Enrique Parejo spoke Meese responded positively. He pointed out the need to of great steps forward in cooperation. "The United States is appeal to "moral conscience" and "instituting . . . in general in favor of increasing our fleet from 10 to 30 units, but we societal values the importance of not using, not only for want more to be able to also spray coca" plants, Parejo told health reasons, but because of what narcotics really does the press April 7. Bilateral meetings between U.S. and Co­ contributeto the breakdownof our totalstructure of society. " lombian law-enforcement officials will take place later in Inearlier statements before the National PressQub March April . 21, statements blacked out in the U.S. press, Meese said: The Colombian press reported that Colombia and the "People should know that there isn't anydrug consumed for United States had agreed on a three-point plan: 1) the total recreationpurposes which isn't harmful.... Wboever is an eradication of all marijuana plants in Colombia, to be com­ assiduous client or who supportsthe criminal networks which pleted in the next three years; 2) dynamiting all clandestine traffic in drugs should know that they support those tied to airstripsin northernColombia; 3) no weakening of the U.S.­ terror, torture or death. Colombian extradition treaty. "Perhaps they believe thatthey are on:ly getting pleasure for themselves, but they arealso spreading misery to millions VVorking together of people oppressed by the narcotics traffickers. Drug con­ Meese's meeting ten days before , on March 22, with his sumers in this country, by theirvery participation, give prof­ Mexican counterpartSergio Garda Ramirez, had beenequal­ its to the people who tortured and in the final account assas­ ly productive, and succeeded in reducing tensions between sinated the DBA agent in Mexico. . . . They encourage the the United States and Mexico around the kidnap-murder of ruffians, who as we realized last year,don 't thinktwice about DEA Special Agent Enrique Camarenain Mexico last month. enslaving literally thousands of Mexicanpeasants in anenor­ "Our meeting today recognized the many positive en­ mous marijuana ranch. And it gives hundreds of millions of forcement steps we have taken together and underscored our dollars to families involved in organized crime who, among steadfast commitment to working together to combat this their other disagreeablebusiness es, traffic with pornography common enemy," read the Meese-Garciajoint statement. which abuses and mistreats thousands of our children. "

EUR Apri1 23, 1985 Special Report 31 �ilruInternational

Gorbachov kindly offers to freeze Soviet superiority

by Konstantin George

On April 7, Easter Sunday , Soviet General Secretary Mikhail United States will reject them, but Europe , if she does not, Gorbachov declared a "moratorium" until November on fur­ will gradually strategically decouple from the United States. ther stationing of intermediate-range mobile missiles. Within The announcement was timed with the "Easter Marches" the same time frame , Gorbachov also "froze" Soviet deploy­ of the Western European "peace movement," and designed ment of short- and medium-range missiles in EasternEurope . to feed an escalated "anti-Star Wars" offensive by the West­ These latter missile types form the so-called "countermea­ ern European foreign ministries-the "Foggy Bottoms" of sures" to the U . S. Pershing II and cruise missile deployments Europe-and the neutralist Socialist International's hard-core in WesternEurope . opponents ofthe SDI. This escalation began with the March The Reagan White House immediately rejected the in­ 15 speech by British Foreign Secretary Geoffrey Howe, con­ sult, saying that the only thing the "offer" would freeze would demning the SDI. be overwhelming "Soviet superiority. " Following that speech, the Australian governmentre ject­ The moratorium declaration and the platitudes it carried ed participation in the SDI, turning down Defense Secretary were printed by Pravda that Sunday , the "peace-loving" oc­ Caspar Weinberger's offer. The Danish parliament, in a ma­ casion of Palm Sunday on the Russian Orthodox calendar. jority vote, bound the government to reject SDI participation. Gorbachov also called on the United States to suspend its West German Foreign Minister Hans-Dietrich Genscher fol­ missile-deployment program , implicitly holding out the lowed Howe with his own blast at participation in the SDI, temptation of Soviet reduction in missiles pointed at Europe. written as an article in his ministry's newsletter. His Free The Soviet leader, employing the language of an ultima­ Democrats , together with Helmut Kohl's Christian Demo­ tum, also demanded a "moratorium for the duration of the crats , form the coalition government in Bonn. Geneva talks on development, including research, testing, and deployment of space based weapons ." An ultimatum by any other name ...

The Gorbachov "moratorium" is intended as the first move When the cold military facts are examined, the Gorba­ in a well-calculated campaign of "peace initiatives" and "arms chov "offer" proves to be nothing but an ultimatum demand­ reduction offers" designed to break Western European sup­ ing that overwhelming Soviet military superiority be institu­ port for the American program of laser-technology missile tionalized. If this goal can be politically achieved, then the defense, the Strategic Defense Initiative (SDI). It thus inau­ Kremlin can effect world domination, including imperial gurates the continuation of the cardinal Soviet policy goal, to suzerainty over all of Europe , by 1988's 1 ,OOOth anniversary effect a rupture between the United States and Western of the Russian Orthodox Church. Europe. What exactly is Gorbachov "freezing"? A Soviet superi­ The Soviet ploy. to unfold over coming weeks and months, ority of not 10 to 1, but precisely 4,992 to 134! is quite simple and crude: Exercises of brute power coupled The Soviets themselves never state how many missiles with ever more "enticing" offers of reduction in the array of they have stationed. But the Soviet Union, minimally, by Soviet nuClear hardware targeting Western Europe. The confirmedWestern intelligence count, has 414 SS-20 mobile

32 International EIR April 23, 1985 launchers . Launchers are not missiles; each launcher has­ Gorbachov is the cheating card shark who just won the again by minimal Western intelligence estimates-jo ur mis­ pot, and now demands an end to the game. siles. These can be fired in the space of a few hours on the firstday of war. But, missiles are not warheads. Each missile Split response today, split alliance tomorrow has three warheads. Thus, 414 x 3 = 1,242 warheads in the The White House's firm rejection of the Gorbachov "of­ first round , and , otherwise, a total of 1,664 x 3 = 4,992 fer" was not matched by and large by the European allies. warheads . Remember, the range of an SS-20 is 5,500 The only other rejection was delivered by British Prime Min­ kilometers . ister Margaret Thatcher, speaking in Singapore: "The con­ This staggering total would be "frozen" against aU. S. sequences of such a freeze would not be to achieve balance, total of 54 Pershing II and 80 ground-based cruise missiles which is of course what we seek, but enormous Soviet supe­ now stationed in WesternEurope. The U. S. grand total is not riority ." But British solidarity with an ally, even in the best only 134 launchers, but, given no reload missiles, 134 mis­ of times, is always rather double-edged. Thatcher took the siles, and , with only one warhead each, 134 warheads. Since occasion to reiterate her "support" for "the SDI research Jan . I, 1984, the Soviet Union has deployed 54 SS-20 program," reflectingthe British posture of "researchonly"­ launchers (36 of them since June 1, 1984), whose warhead no deployment. Thatcher, perhaps casting a signal to the total alone is more than the entirety of the U. S. missile in­ Soviets concerning a future phase of the Gorbachov "peace­ ventory in Western Europe. initiative" campaign, stressed the importance of "verifica­ The Soviet Union, as the Pentagon's annual report, Soviet tion" in arms-control agreements: "The essence of any agree­ MilitaryPower, states, has also developed an improved ver­ ment in the arms sphere is verification." sion of the SS-20, dubbed the SS-X-28, which has greater Sir Geoffrey Howe on his visit to East Berlin-the first accuracy . ever by a British foreign secretary-more openly deviated Gorbachov has generously offered to "freeze" the so­ from the U.S. position, saying: "We shall study it carefully called Soviet "countermeasures" to the stationing of U.S. to see whether it can make a contribution towards achieve­ missiles. These "countermeasures," announced in the fall of ment of the objective of truly balanced and verifiable reduc­ 1983 by Yuri Andropov, comprised the stationing of three tions in those weapons." types of highly accurate short- and medium-range missiles The West German government, reflecting the blackmail with the Soviet forces in East Germany, Czechoslovakia, power of Genscher and heavy Soviet threats, formally de­ Hungary, and the western U.S.S.R. They are: the SS-21 clared it had nothing to say on the matter. Chancellory

(range 120km = 70 miles); the SS-23 (5OOkm = 325 miles); spokesman Peter Bonsich declared: "It is our principlenot to the SS-22 (1 ,000km = 625 miles). In short order, by the fall give statements which concern the biltaeral dialogue and the of 1984, these "countermeasures" were deployed with the strategic dialogue between the United States and the Soviet Soviet armies stationed in all of the states named. Union." Bonn, with Genscher "quarterbacking," received The time-frame of the deployment alone destroys the the kick-off, punted on the 1st down, and then leftthe field. "countermeasures" claim. Three new types of missiles can­ not be operationally deployed overnight. They were clearly Socialists 'second' Gorbachov researched and developed before any Pershing-stationing de­ The Brandt-Palme wing of the Socialist International im­ cision occurred-and in serial production long before any mediately and heartily endorsed Gorbachov's "offer." This Pershing ever arrived in Europe. Not to mention that the coordination between Moscow and the West German Social missile regiments of the Soviet army were thoroughly trained Democrats (SPD), the British Labour Party and Social Dem­ to operate and maintain these new weapons before Andropov ocratic Party, and other social democracies in Europeis ugly, ever opened his mouth to say: "countermeasures." but no surprise. Thus , if not even one SS-20 existed, the Soviets have by From the British Socialists, Shadow Foreign Secretary now stationed a minimum of 288 SS-22 launchers, with a Denis Healey spoke out April 8 on BBC, attacking the "koee­ l,ooo-km range capable of blanket bombardment of all im­ jerk negatives" of Reagan and Thatcher, while hailing Gor­ portant areas in Western Europe, including all of Germany bachov: "I think it's a good offer and I think we should take and Scandinavia, and most of France, Italy and Britain. The it up. " Radio Moscow, monitored that same day, lost no time SS-22s are broken down as follows; 72 in East Germany, 36 in broadcasting these quotes. British Labour Party Chairman each in Czechoslovakia, and at least 144 with the Soviet Neil Kinnock also hailed the "offer," attacking Thatcher's forces in the western U.S.S.R., including the area which rejection: "It is pathetic that MrS . Thatcher has just trailed used to be East Prussia. The SS-22 arsenalalone is more than along behind the White House." double the total of Pershing lIs and cruise missiles. Add to West German SPD spokesman Horst Ehmke outdid them this hundreds of SS-23s and SS-21s stationed with the Soviet all by calling the Gorbachov statement "a signal in the right forces in East Germany, Czechoslovakia, Poland, and Hun­ direction. A mutual freeze on both the U.S. and the Soviet gary , and both the insult and the ultimatum contained in side is exactly what is needed to gain time. . . . " Gorbachov's "moratorium offer" become very clear. Yes, HerrEhmke , but for whom?

EIR April 23, 1985 International 33 Will the Sudanese ' domino' fall due to U. S. support for the IMF?

by ThierryLalevee

A military coup d' etat in Sudan on April 6, overthrowing the EitherU . S. policy toward Africa ceases to be IMPpolicy regime of Gaafar Numayri while the latter was abroad for toward Africa, or the stability the coup now makes possible talks in Washington and Cairo, quickly restored order to the will be short-lived indeed. strike-paralyzed capital city of Khartoum and produced cau­ tious jubilation throughout the country . But with as many as The new regime 7 million of 22 million people facing starvation this year, a Reports coming from Washington indicate that, if there well-organized guerrilla rebellion in the south, and little pros­ was little surprise at the news of the coup-Numayri had just pect of meeting the usurious demands of international credi­ departed Washington for Cairo-there was some perplexity tors and their collection agency, the International Monetary over its perpetrators . Little was known about the new military Fund, the new chapter opened in the region's history by the ruler, Gen. Abdel Rahman Siwar Ad Dahab. He is reportedly coup may well prove to be only a thin breathing space be­ a quiet military officer who, only last year, had refused to tween the present situation and holocaust. become chief of staff for health reasons. The official reports That Numayri had to go if the integrity of Sudan as a even say that he refused to take leadership of the coup until nation was to be preserved there was little doubt-not only the last moment, that only the threatof younger, more radical in Sudan, but in the United States and Egypt, the country's officers assuming command, and waiting for Numayri's re­ two principal allies. There is every indication that the gov­ turnbefore acting-a sure recipe for civil war-decided him ernments of both nations did not discourage, if they did not upon his course. organize, the Sudanese President's overthrow . Numayri's arrival at Khartoum airport would have split Even so, this was no mere palace revolution. Numayri the army. General Ad Dahab accepted leadership late on

was not overthrown merely because of personal corruption, April 5 , on condition that thecoup would be undertaken while or a quarrel between himself and the military leadership. The Numayri was still abroad, thus averting a bloodbath. As it conditions making the coup necessary were imposed on the was, only some 10 people lost their lives.

country from the outside, by the IMP . It was a new round of General Ad Dahab is a member of the large Khatmiyya harsh IMP austerity measures, including increases in food Brotherhood which, until 1969, shared political power with prices by one-third, imposed on March 27 as Numayri de­ the Ansar Brotherhood of Saded al Mahdi. This points to a parted for talks with PresidentReagan in Washington, which strong Egyptian connection. Traditionally associated with provoked the mass unrest leading into the coup. The mea­ Egyptian Islam, the Kbatmiyya opposed Numayri's attempt sures were greeted by 15-20,000 demonstrators in the streets at complete Islamization of the country and his association

of Khartoum demanding, "Down with the IMP , Down with withthe extremist Muslim Brotherhood of Hassan al Turabi . the World Bank." Cairo, more than Washington, may have smoothed Ad Da­ The coup thus came as , more than anything- else, a na­ hab's road to power. tional rejection of IMF policies. Numayri was overthrown It was also Cairothat could ensureNumayri 's acceptance because he had made himself the agent of a policy of geno­ of the coup. The events unfolded as Numayri arrived in the cide, the IMP's loan "conditionalities"-and these, to date, Egyptian capital, where he remains. Some sort of agreement still have the backing of the United States. was quickly reached, as on April 8, the deposed President

34 International EIR April 23, 1985 cabled his good wishes to his successors, saying he "under­ a new civilian government. The ultimatum, of course, was stood the reasons"behind the coup d'etat. immediately described by General Ad Dahab as unaccepta­ Ensuring rapid success for the coup-makers were two ble, but it served as a reminder that, only four days after the otherdevelopment s: bloodless coup, the period of grace was already over. First, most of the military leadership quickly sided with Whatever Colonel Garang is, peace in southernSudan is Ad Dahab when he made his decision to proceed quickly, essential. In that region is located the crucialJonglei Canal prior to Numayri's return. In particular, the commander of project, 80% complete. The water transportation and irriga­ the well-trained and powerful paratroopunits , Gen. Ibrahim tion capacities it promises could make the areaa breadbasket Yousef el Djali, who might have functioned as an obstacle, for the entire continent, and is crucial for both Sudan and sided with General Ad Dahab before the coup itself. EI Dj ali Egypt. Its construction, interrupted by warfare, must be re­ deployed his forces side by side with armored units and tank sumed as soon as possible. forces aroundthe airport and strategic locationsin the capital. For example, as the drought afflicting the region is no­ Behind such decisions was, in part, concern over younger where near ending, the canal could supply Sudan and Egypt and more radical officers, but also, the view that it was not with 6 billion cubic meters of additional water each year. now the army's job to repress the population. This would have been one of Cairo's most importantreasons A second and most important factor was Dahab's deci­ for ensuring the return of some stability to Sudan. sion to repealthe IMF-imposed austerity measures, including There is little doubt that, backed by Soviet client-states the 33% price increaseon bread and basic foodstuffs . Hence, Ethiopia and Libya, and fully aware of his blackmail power the coup prompted new demonstrations, but this time, of regionally, Colonel Garang will play for very high stakes jubilation. By April 8, the general strike had ended as trade­ before accepting any reconciliation with Khartoum, for which union leaders called on their members to return to work and direct military confrontation with his forces has proven both "produce more ." Calm returned to Khartoum. ineffectual and expensive. As General Dahab himself underlined in a press confer­ But then, a resolution to the conflict is not a military ence on April 10, his new military regime, made up of a 15- question so much as an economic one, requiring that the officer cabinet, must immediately face two crucial tasks: to central government have the financial ability to share the ensure a national reconciliation between North and South, fruits of national development between Islamic north and Muslims, animists and Christians, to preserve the integrity Christian south, something it has been systematically pre­ of the country; and to remedy a situation in which, with or vented fromdoing-not merely because of Numayri 's Islam­ without Numayri, 4 to 7 million Sudanese are in danger of ic focus, but because of IMF conditionalities. starving to death, in addition to hundred of thousands of In fact, it was those very conditionalities which led Nu­ refugees who have streamed in from Chad, Ethiopia, and mayri to attempt a process of Islamization, featuring nation­ elsewhere. wide enforcement of the fundamentalist Sharia (Islamic law). Meeting with ambassadors of the major countries tradi­ The brutal law was seen as the best means of controlling a tionally friendly with Sudan, General Ad Dahab urged them restivepopulation in the face of the IMF's brutal austerity­ tocontinue previouslyagreed-upon aid programs and to con­ and the relevant desks at the IMF and World Bank were sider increasingeconomic and especiallyfood aid as soonas entirely aware of this. possible. Although a devout Muslim believer, General Ad Dahab There havealready been some good-willgestur es. Coun­ is expected to repeal this Islamic law, not only as a gesture triessuch as Egypt andJordan , as well as Saudi Arabia, called toward the southernChristians and animists, but towardMus­ the new rulerto offer "all necessary help immediately. " lims who thus suffered just as much by it. On this score, too, The United States, it was reportedon April 10, is consid­ there is no doubt that many in Cairo feel relieved. Sudan's ering footing the bill for Sudan's badly needed oil imports, fundamentalist Islamization was threatening to spread and may also soon release some $100million in aid frozen northward. by the State Department last February. Some $70 million Sudan and the regionmay be openinga new page in their have already been released, the announcement coming by history, but unless it is understood, above all in the United President Reagan during his meeting with Numayri April 1. States, that they have to be given the economic and financial However, thereare no illusions in Khartoumor Washing­ means to save millions from a new holocaust, the Sudanese ton that these are anything more than drops in the bucket­ "domino," as some call it in Washington, will fall. when 7 million people are close to death. The consequences are known. In fact, these very conse­ National reconciliation is also of utmost importance. On quences are prescribed in the Carteradministration 's Global April 10, theleader of the southernSudanese rebellion, Colo­ 2000 Report. And if President Reagan does not, too many nel Garang, deliveredan ultimatum to Khartoum: The army figures in the U.S. State Department do subscribe to that was given a seven-day time-frame in which to yield power to "populationcontrol" document.

EIR April 23 , 1985 International 35 Soviet plan hurt U. S. intelligence capability in the Middle East by our special correspondent

Since the 1976 election of Jimmy Carter as President of the 2) Turkey, 3) Pakistan, 4) India, 5) Bangladesh, 6) Kuwait, United States, the Soviet Union's secret intelligence ann, the and 7) Lebanon. In each area, the basic operational modeof Commissariat of State Security, the KGB , launched a well­ the KGB was fairly successful. According to informed balancedplan to reduce U. S. capabilities in the Mideast. sources, some of these operational schemes involved at least The key to the Soviet scheme was to exploit Carter's 36 countries, including some in Latin America. inane commitment to his version ofhuman rights, his "Global Thedocument ( see box) releasedfor the first timepublic­ 2000" plan for world population reduction, and most signif­ ly, reveals one critical incident showing how the State De­ icantly, Alexandre Bennigsen and Zbigniew Brzezinski's Is­ partment viewed Soviet-instigated operations. The group lamic Arc of Crisis policy. This latter policy was an attempt identified in the released text identified as the "SecretTrans­ to use the Islamic fundamentalist card against the Soviet World Organization For Punishment"was one of the original Union's Muslim population . However, the effective control names for the Islamic Jihad organization (see EIR , April 9, and penetrationof the fundamentalists by the Moscow-head­ 1985, p. 3 1 ) . The referenceto the Chinese-American "friend­ quartered Oriental Institute turned the Islamic Arc policy of ship" was actually targeting the People's Republic of China' s Carter's National Security Adviser Brzezinski into the Arc secretcooperation with the Shah of Iranbefore his demise. It of Crisis for U.S. policy in the Mideast and Persian Gulf. should beremembered that the Islamo-Marxist Mujaheddeen In order to accomplish their objectives of turning Brze­ organization in Iranhad extensive ties with not only the KGB, zinski's discredited mad scheme into a capability for destroy­ but P.R.C. intelligence. At least half of the Confederation of ing U.S. intelligence in the Mideast, the KGB deployed the Iranian Students were self-proclaimedMaoists. The Chinese gaggle of networks ranging from North Korean-trained Ira­ had been supporting the Maoist organizations prior to the nian kamikazes to Syrian- and Libyan-trained terrorists . agreement with the Shah and stopped doing so as a resultof Specifically, U.S. foreign service and intelligence per­ some sticky U.S. mediation betweenthe two countries. What sonnel were hit by a wave of psychological terror ranging this incident points out most clearly is that U.S. officials, from personal threats against individual officials and their although aware of the KGB instigations, were completely families to rumor-mongering about officials' personal lives. blind to theoverall gameplan of the KGB in securingcontrol In several cases, U.S. officials were targets of assassination over Brzezinski's Islamic Card. threats as a result of rumors initiated by the KGB that U.S. If Brzezinski's insanity were not enough, former Presi­ officials had raped some local Muslim women. This tactic dent Carterin his newly published book, The Blood of Abra­ was successfully utilized in Iran and Afghanistan during 1976- ham: Insights into the MiddleEast, adds his own lying ver­ 79, when the Shah of Iran was overthrown, and the Soviets sion of events during this period. ". . . Across the Persian successfully invaded Afghanistan. It resulted in the assassi­ Gulf, the seeds of rebellion were being germinated in Iran , nation of two U. S. diplomats in Afghanistan. by the autocratic rule of the Shah . . . and by the adverse During this critical period when the upheavals in Central reaction of conservativereligious leaders to the Shah's rapid Asia reached a climax, U.S. personnel were shifted out of moves toward a Western and secular society. The fundamen­ the region, causing confusion among the various official de­ talist Shia Muslims wereespecially critical of growing equal­ partments and more significantly, destroying the continuity ity for women and non-Muslims, the absence of Islamic of the anti-Islamic Card forces with the State Department's influence in the government . . . and the brutal oppression Intelligence and Research Bureau (INR), CIA, and DIA. The by state police of those who demonstrated publicly against confusion resulted in completely wrong assessments of cur­ the Shah's policies. rentpolitical developments in several countries in thatregion . "During the mid-70s, therewas no serious thought within As these events in Central Asia were unfolding, U.S. our own intelligence agencies or among the political leaders personnel in the fo llowing countries received the same treat­ of Europe or the Middle East that the Shah would actually be ment as their colleagues in Iran and Afghanistan: 1) Greece, overthrown. However, because of reportsof increasing via-

36 International EUR Apri1 23, 1985 lence in Iran, when the Shah made his first visit to Washing­ ton . . . I spoke to him about the need to address the revolu­ EIR Sp ecial Report tionaryforces against him ...." Carter's self-righteous claims of concern over the Khom­ eini forces being"oppressed" by the Shah and his ignoramous attitude about U.S. intelligence having been lacking in thought about the possible overthrow of the Shah is not only insulting to the memories of the U. S. intelligence offiCials who were How Moscow Plays the killed by Khomeini' s terrorists, but to the simple historical fact that during his administration, the greatest intelligence Muslim Card in the retreat of the United States in 130 years took place. Middle East In thepast year, haveyou . .. Text of previously Suspected that the news media are not presenting unpublished document an accurate picture of Soviet gains and capabilities in the Middle East?

The following are excerpts from an unpublished doc­ Wondered how far the Khomeini brand of funda­ mentalism will spread? ument recently made available to EIR by State Depart­ Asked yourself why the United States seems to be ment sources: making one blunder after another in the Middle AMEMBASSY TEHRAN East? SECSTATE WAS HDC lf so, you need EIR 's new Special Report, "How SU13J: THREATENING LETTER OF PROBABLE Moscow Plays the Muslim Card in the Middle East." SOVIET INSTIGATION 1. (S - ENTIRE TEXT) This ground-breaking report covers: 2. ON APRIL 8 POL COUNSELOR RECEIVED LETTER CONTAINING NEATLY PRINTED • History and Mideast policy of the Pugwash WAR NING ABOUT CHINESE-AMERICAN Conferences, whose organization by Bertrand FRIENDSHIP AND "SEVERE PUNISHMENTS" TO Russell in involved high-level Soviet par­ BE METED OUT EVEN-HANDEDLY TO 1957 ticipation from the beginning. Pugwash Confer­ "AMERICAN AGGRESSORS" AND "CHINESE ences predicted petroleum crises and fo resaw AGGRESSORS." THE LETTTER HAD A BLACK tactical nuclear warfare in the Middle East. BORDER AROUND IT CARRYING SOME THREE DOZEN WORLD CAPITALS, IN EUROPE, ASIA, • The Soviet Islam establishment, including AND LATINAMERICA, AND WAS HEADED BY Shiite-born Politburo member Geidar Aliyev, the THE PURPORTED NAME OF THE THREATENING Soviet Orientology and Ethnography think tanks, ORGANIZATION: THE "SECRET TRANS-WORLD and the four Muslim Boards of the U.S.S.R. ORGANIZATION FOR PUNISHMENT." THE LETTER CAME ADDRESSED TO POL COUNSELOR • Moscow's cooptation of British intelligence BY NAME (NOT POSITION) FROM VIENNA. ... networks (including those of the "Muslim 3. SINCE CHINESE RELATIONSHIP WITH U.S. IS Brotherhood"-most prominent member, Aya­ OF NOT THE SLIGHTEST INTEREST TO ANY tollah Khomeini) and parts of Hitler's Middle IRANIAN TERRORIST GROUPS, THE LETTER East networks, expanded after the war. CAN ONLY BE OF SOVIET INSPIRATION. IT HAS BEEN FORWARDED TO WAS HINGTON THROUGH • The U.S.S.R.'s diplomatic and political gains OTHER CHANNELS FOR MORE SPECIFIC in the region since 1979. Soviet penetration INVESTIGATION. THE FACT THAT IT WAS of Iran as a case study of Moscow's Muslim card. ADDRESSED BY NAME TO POL COUNSELOR TheAugust 1983 founding of the Teheran-based HERE, AMONG OTHERS, RAISES MORE terrorist "Islamintern," which showed its hand GENERAL QUESTION AS TO WHETHER LOCAL in the Oct. 23 Beirut bombings. SOVIET EMB IN TEHRAN HAS NOT BEEN ORCHESTRATING, OR CONTRIBUTING TO $250.00. Order from EIR Research, P.O. Box 17726, SELECTIVE ANTI-AMERICAN INTIMIDATION Washington, D.C. 20041-0726 CAMPAI GN OVER SOME TIME-TO GO WITH ITS ATTEMPTED INTIMIDATION OF OTHERS' REPORTED SEPARATELY.

EIR April 23 , 1985 International 37 CentralAmerica

Reagan finally seeks Contadora's cooperation to end strife byGretchen Small

Following meetings with Colombian President Belisario Be­ urgency of a cessation of hostilities was conveyed to Presi­ tancur in Washington on April 4, President Reagan an­ dent Reagan by Mexican President Miguel de la Madrid 'by nounced a new peace proposal for Central America. While telephone on April 8. important elements of the U. S. proposal have not been ac­ The proposal for "internationally supervised elections," cepted by the Contadora group, which has based its peace and that a specific form of dialogue be a condition for peace, plan on total non-intervention and self-determination of every has been received with more caution. Contadora leaders stress nation in Central America, the spirit of Reagan's initiative, that if the principle of the sovereignty of nations over the which clearly rules out any U.S. military intervention in the ordering of their internal affairs is violated in one case, it is area, was supported by Mexico, Panama, Venezuela, and violated for all. Betancur's report on his Washington visit, Colombia, the nations which make up Contadora. delivered on Colombian television the night of April 7, sum­ Although the Reagan administration has given lip service marized the principal argument conveyed privately by other in the past to support for Contadora's role in the region, the lbero-American leaders . President Reagan "opened a ray of Reagan/Betancur talks set up a collaboration that shows an light on the delicate subject of supportfor the rebel groups in understanding that the Contadora nations, all of which flank Nicaragua," Belisario stated. "We agreed with the President the Central American war zone, must play a crucial role in in seeking a dialogue between the Sandinista governmentand bringing peace to the area. its opposition . . . all within the spirit of Contadora which President Reagan's "new proposal for peace" in Central promotes national reconciliations. . . . His peace proposal America centered on a 6O-day ceasefire by U. S.-backed armed must be carefully analyzed and discussed, since it contains opposition forces in Nicaragua, through June 1, if the San­ elements which are difficult to implement" since "acceptance dinista government agreed to hold "Church-mediated talks belongs autonomously to the Sandinistas." on internationally supervised elections ." Reagan reiterated Thus far, theNica raguan government has rejected the his interest in cooperating with the peace efforts of the Con­ Reagan proposal out of hand. "I say there is no peace proposal tadora Group. at all, that it is more like a declaration of war," Nicaraguan White House spokesmen reported later that day that Pres­ Foreign Minister Miguel D'Escotto said on Nicaraguan TV . ident Reagan had sent a personal letter to Pope John Paul II Embassy spokesmen stated that the Sandinista government to inform him of his proposals on Central America, and "seek will never hold a dialogue with the "counterrevolutionaries." his advice." To be watched more closely are discussions between the A remarkable density of telephone-diplomacy between Nicaraguans and the Contadora Group on possible variations Presidents in the Western Hemisphere followed. Within days, of the Reagan proposal. Talks began when Nicaraguan head Reagan spoke personally to the heads of state of Argentina, of state Daniel Ortega met with Colombian Foreign Minister Mexico, and Venezuela to outline his thinking on the region. Ramirez Ocampo while both were in Havana, Cuba the Colombian President Betancur had already been informed, weekend of April 8. and reported upon leaving Washington that he was the bearer Popular support in the region for a strategy of negotiation of a "private message" from Reagan to the other heads of and dialogue to resolve Central America's problems was state in the Contadora countries. demonstrated in EI Salvador's presidential elections March The ceasefire offer was quickly supported by leading 31. Jose Napole6n Duarte won an upset victory, leading a figuresin the Contadora Group . Colombian President Betan­ sweep by his Christian Democratic party of the country's cur, speaking at his finalWashington, D. C. press conference National Assembly, on the basis of his campaign platform of April 4, called the proposal "constructive," necessary to pro­ continuing dialogue, with rebel guerrilla forces on solutions vide "propitious conditions to carry out reconciliation dia­ to over five years of civil war. Defeated was the platform of logues" in Central America. A similar appreciation of the his opponent, Roberto D' Aubuisson, for libertarian "free

38 International EUR April 23 , 1985 · enterprise" and an escalation of the war in the countryside. D'Aubuisson's campaign was also hurt when one of his top Facts Behind Te rrorism lieutenants was arrested in Texas for drug-runningearlier this year. Duarte's victory was a defeat for the U.S. State Depart­ ment and its local enforcers, Lane Kirkland's American In­ stitute for Free Labor Development (AIFLD). AIFLD and the State Department had tried to build up D' Aubuisson's candidacy and weaken Duarte's in the last month of the election campaign, claiming that a strong Duarte victory Genscher seen again would upset the "balance" of political forces in EI Salvador. The only success the "balance" of forces policycan claim covering for Qaddafi is the creation of weak governments with less power thanthe armed military bands of right and left which dominate the The affair evolving around the recent brutal murder of the country. The combination of a more stable center ofpower Libyan exile Gebril el Denali in the German capital of Bonn in EI Salvador with a potential 60-day pullback of fighting in demonstrates once again the abysmal state of German secu­ Nicaragua defines the crucial opening for cooling out the rityagenc ies, which are still penetratedby the corrupted and volatile region. poisoned political channels personified in the figure of For­ eign Minister Hans-Dietrich Genscher. Genscher, who hap­ Development and peace pens to be at the center of the political forces who want to Now that President Reagan has openedcollaboration with pull the Kohl government away from the Reagan's Strategic two forces in the region indispensable to peace, the Vatican Defense Initiative, repeated another "Tabatabai Affair," by and Contadora, what is necessary to add to the package is a refusing to take any serious steps against the outlaw Qaddafi plan for large-scale economic development. regime. Two years ago, he intercededto freeIranian "diplo­ The need to link peace and development was a constant mat" Tabatabai fromheroin smuggling charges. theme of Betancur in Washington. "A peaceful solution There are two facets of Genscher's scandalous behavior. through dialogue is more stable than a monologue of armed Firstis his roleas the pivotal figureamong anti-Reagan forces intervention" which would "unleash a wave of subversion" in West Germany who would rather make back-channel deals across the continent, he told an audience at Georgetown withthe Gorbachov regime than mount a defense of the West. University April 3. "Without peace there will be no devel­ Second is the depth of trade relations of Germany with the opment; and without development peace cannot be consoli­ Soviet satrapy Libya. The Federal Republic is the second dated. The fight in Latin America is not EastlWest; it is largest importerof Libyan oil, and Libya is the second largest against underdevelopment. To break this vicious circle we importer of German goods into Africa. Of German exports have to implant everywhere a socialinfrastructure of schools, to Libya, 22% are electronics, a fact with definite military hospitals, aqueducts, and projects that generate employment, implications. and increase exports ." Libyanexile Denali, who was active in anti-Qaddafi op­ In the same speech, Betancur criticized theKissinger position groups, was shot to death on Saturday, April 6, by commission report on Central Americafor its "emphasis on theQaddafi-hired hitrnan Fatahi el-Tarhoni. The hit occurred pushing programs for the nations that show good behavior, in thecrowded center of Bonn; two rounds which missed the and for the long term, a horizon in time by which we may all victim seriously injured two German citizens. This action be dead.... Central America needs, in the shortest term, was taken immediately after anotherround of terrorist state­ financial and technical resources, mechanisms to facilitate ments by Qaddafi, who had announced in February that he trade, betterterms of trade, and lower interest rates." would take revenge against those who housed adversaries of Finally, Betancur presented a proposal to theU. S. con­ his regime. gress to establish an "Alliance for Peace, Development and Democracybetween the United States and Latin America," BKA: Achilles Heel of security and"In the case of Central America, to support the Act of The state secretary of Interior Minister Friedrich Zim­ Contadora and . . . its plans for generation of the physical mermann, Carl Dieter Spranger, called this act "another in­ and social infrastructurerequired by the region." Subversion, credible case of state terrorism." State terrorism is a "real is sometimes an inappropriate name for what our nations danger and a greatthreat to Westerndemocra cies," Spranger suffer, he said, "inappropriate because among us sometimes stated in the daily Die Welt, adding that a "global offensive the subversives are not the masses nor their leaders, but our strategy of Western states against this state terrorism" is situations, our neediness." needed. Butafter cabinet debates on the implications of the

EIR April 23, 1985 International 39 Libyan hit, the Kohl government bent over to the appease­ BKA, this is hard to believe. But such bureaucratic idiocy ment-line of Foreign Minister Genscher, who said that cut­ misses the crucial point. Even schoolchildren know that the " " ting diplomatic relations with Libya would be useless. The letters 0 and "u" are interchangeable in transliteration from statement of the government spokesman, that the cabinet Arabic. Secondly, Sahib Rashid is known as a hitman oper­ could not share Spranger's formulation of state terrorism ating internationally for Qaddafi since at least 1980. Rashid because "proof' of participation by the Libyan government was on the Italian wanted list for a murder committed in in the crime was lacking, was in effect a slap in the face to Milan in 1980. In 1983, he was arrested in France and sent Spranger. back to Libya instead of being extradited to Italy. This is not the firsttime that through Genscher's personal The enforced and induced intelligence blackouts and fail­ role , operations of the Soviet satrapy Libya or the genocidal ures in German security agencies are aggravated by the fact Khomeini regime remained "untouchable" on German soil. that leading positions are occupied by persons who lack One of the vehicles which has made the gentlemen's agree­ professional intelligence and field experience or openly ad­ ment possible is the Wiesbaden-based German criminal po­ vocate political views which should automatically result in lice office, the Bundeskriminalamt (BKA) . The BKA, once firing the person from such a position. One of the worst an efficient instrument in cracking down on the first genera­ possible examples to this effect was a recent interview by the tion of the terrorist Red Army Faction (RAF) , has lately chairman of the Hamburg state office of the Verfassung­ become one of the worst examples of penetration by rotten schutz (one of the three intelligence services which is respon­ and corrupted political channels. In 1981, still under former sible for covering anti-constititutional activities on German Interior Minister Gerhard Baum, the BKA took up the offer soil), Christian Lochte . Lochte , who already enjoys a noto­ to train Qaddafi ' s security force . The second German federal rious record of incompetence in security circles, gave a fu ll­ police force, the Bundesgrenzschutz (BGS,) emphatically page interview to the pro-terrorist rag tageszeitung, crimi­ rejected this offer, which was then passed on to the BKA nally downplaying terrorism, denying any international which accepted it and conducted an intensive training pro­ structure of terrorism and East bloc role, and engaging in gram for Qaddafi' s "security force. " anti-American tirades. This outrageous behavior was not an isolated case. Some Lochte goes so far as to state that there is no "Euroterror­ BKA spokesmen became famous through consistent under­ ism," calling security measures during the peak of the terror­ estimation, intelligence failures, and denials of East bloc ist wave in 1977 an "overreaction." He ridicules the Ameri­ involvement in the ongoing terrorist wave. In the case of the can thesis of KGB involvement in international terrorism. murdered Qaddafi-opponent Denali, the BKA's despicable The Americans "simply don't understand" what terrorism is role has surfaced again: The BKA conducted investigations about in Europe . into Denali based on "charges" of the Libyan "people's of­ fice" in Bonn, which claimed that Denali was planning bomb­ Terror wave continues ings and a "kidnaping" of the Libyan military attache. In this But meanwhile, in West Germany the wave of terrorist case the world was turned upside down; Denali, who was acts since last December continues, with two significant bomb knownto be a highly endangered person, had been dragged attempts over the Easter week conducted by the RAF. In into the Bonn Libyan "embassy" and tortured there in 1982. Hamburg the office of a navy-linked ship-building associa­ Even worse, the German government spokesman made it tion was bombed and once again, the NATO-pipeline near known after the debate on the Denali killing, that the BKA the city of Aalen was hit, in both cases with severe damage by Feb. 1, 1985 was in possession of a detailed warning of a to property . In Paris, three bombs were detonated during the planned hit on Denali. The warning said that a Libyan named same timeframe . Tarhoni, together with another Libyan, Sahib Rashid, were Lochte was also belied by the results of a raid on a Paris planning a hit in the immediate future in the Bonn area. apartment which turned up new evidence of international Tarhoni had entered Germany by late January with a valid connections between terrorists. The flat had served as a base visa issued by the German embassy in Tripoli. This visa, for the PFLP front group FARL (Armed Lebanese Revolu­ gooduntil Feb . 21, was extended until April 21 for Tarhoni tionary Faction). The investigation, directed by the French afterhe appeared personally at the foreigners ' department of counterintelligence service DST, once again showed tight Bonn city hall ! coordination between the RAF, France's Direct Action, the The official, whitewashed version to explain this fiasco Italian Red Brigades, and the Belgian CCC-group, which all is that the BKAmessage , which was passed on to state levels, used the busted Paris apartment as a common equipment and contained a "misspelling" of the hitman's name, "Tarhuni" arms pool. instead of "Tarhoni ." Further, the message was not passed The role of Switzerland as the financial center for terror­ further from the statepolice offices to the foreigner sections ism also came into the limelight. The rent on the apartment, of the municipal offices because of "data protection" proce­ as well as the funding for the F ARL ' s and other terrorist dures. Given the fancy data processing capabilities of the groups' operations, came from a Swiss bank account.

40 International EIR April 23, 1985 SoutheastAsia by Sophie Thnapura

Soviets 'guarantor of peace'? conflicts and will not," he announced. Kapitsa's recent tour spread discord among the ASEAN Earlier, in Bangkok, Kapitsa had countries, offs et by offe rs of imperial beneficence. rejected the Thai request to stop Soviet military aid to Vietnam, without which Vietnam would not be able to prolong its occupation of Kampuchea. In Jak­ arta, he conferred with President Su­ harto , Foreign Minister Mochtar Ku­ You knew something was afoot should be forthcoming within the next sumaatmadja, and Armed Forces when it was announced that Soviet 60 days. Commander Benny Murdani. Deputy Foreign Minister Mikhail Such cooperation between the In an attempt to sow discord and Kapitsa would extend his stay in United States and Japan, "with Eu­ distrust among ASEAN nations on the Bangkok to almost two weeks. Fol­ rope joining in eventually," would tre­ sensitive question of Kampuchea­ lowing a visit to Australia, Kapitsa's mendously accelerate the five-year re­ immediately after the recent and seri­ Thailand trip was to allow him to at­ search and development program ous Vietnamese violation of Thai bor­ tend the 41 st annual meeting of the foreseen for the sm, while launching ders in an attack on the stronghold of Economic and Social Commission for a technological boom into the 21st Prince Sihanouk at Tatum-Kapitsa, Asia and the Pacific (ESCAP). century in the Western world . The So­ during a short stopover in Bangkok en To the surprise of everyone there viets have but 60 days to act in the route to Hanoi from Jakarta, an­ on March 19, Kapitsa brought up the Pacific. nounced to the press that a good part question of "Star Wars"-"the right Kapitsa himself is scheduled to of ASEAN was seriously considering time but the wrong place," many felt, visit Japan in May to prepare for So­ the five-point Vietnamese proposal. In as the ESCAP meeting was supposed viet Foreign Minister Andrei Gromy­ so doing, he trained suspicions on In­ to deal exclusively with social and ko's official visit there . donesia, whose Foreign Minister economic problems . But Kapitsa had Soviet pressure has already been Mochtar had just visited Hanoi before decided to use the ESCAP session as brought to bear on Japan and China. going to the United States. It was one a propaganda podium from which to The U.S. Defense Department in its of those rather unsophisticated Soviet blame the "American imperialists" for annual report on Soviet military ca­ diversions. "an arms race in space ." Through an pability released in early April , re­ More important among Kapitsa's unofficial translation provided by ES­ vealed that the greatest additions to the moves in the Southeast Asian region, CAP facilities, he complained of the Soviet Union's military fleetare being is a recent trade deal signed in Bang­ militarization of space, and declared made in the Far East. The most mod­ kok between the Soviet Union and that unless the United States stopped ern surface vessels, as well as the most Thailand. Kapitsa signed a 500,000- pursuing the Strategic Defense Initia­ modern submarines, have been added ton tapioca deal with the Thai govern­ tive, there would be no possibility for to Soviet naval and air strength in the ment , benefiting essentially the MET­ the two superpowers to reach an region , including the China Sea. Ro group of tapioca producers. The agreement on arms reduction . After the ESCAP meeting in value of the deal was estimated at $22 Strangely enough , the U.S. dele­ Bangkok, Kapitsa, an expert in Asian million, with the possibility of even­ gation's attempt to respond was over­ affairs , had the nerve to declare upon tually exporting up to 2 million tons ruled by the Nepalese chairman of the his arrival in Jakarta, Indonesia �hat of hard tapioca pellets over a periodof session. the Soviet Union was ready to assume two years . The Soviet obsession with the sm the role of "guarantor of peace" in The trade deal-representing more unmistakeably revealed their panic Southeast Asia. "The Soviet Union than half of the export quota to the over the fact that the Japanese may will make a positive contribution and European Community-is welcomed soon officially join the American de­ is willing to be one of the guarantors by the Thais. It comes in the aftermath fe nse program . The United States sent for peace, harmony, and stability in of the IMF-World Bank-instigated de­ an invitation to Tokyo in March to the region. Southeast Asia has long valuation of the Thai baht, whose aus­ assume a role in the technological de­ been haunted by conflicts and the So­ terity impact is just beginning to be velopment of beam defenses. A reply viet Union has never exploited the felt.

EIR April 23, 1985 International 41 Mother Russia by Luba George & Carol Greene

ROC-military ' Jubilee' readied the leader for the 1988 anniversary, First of a series on how the Soviet Empire plans to celebrate the was formally nominated as leader by millennium of Russian Christianity. Politburo member and Foreign Min­ ister Andrei Gromyko , with language taken directly from the Russian Ortho­ dox Church liturgy . Months earlier, Gorbachov him­ self-already chairing Politburo meetings in place of the moribund 'Those who are familiar with the ist policies. In 1947 , the United States Chernenk�proclaimed on Dec. 10, thousand year-old history of the Rus­ added Greece andTurkey to the coun­ 1984: "The Soviet Union will do ev­ sian Church know that patriotism has tries it would protect. This put a stop erything it can to ensure the strength­ always been and remains an indispen­ to the Soviet drive to add Greece and ening of the country's position in the sable part of her Slavic mission. This European Turkey to the Russian Em­ international arena, enabling it to en­ was well expressed in the Message of pire-including Istanbul (Constanti­ ter the next millennium fittingly, as a his Holiness Patriarch Pimen and the nople), the seat of the Ecumenical Pa­ great and prosperous power." Prime Holy Synod on the 600th anniversary triarch of the Orthodox Church, a prize Minister Nikolai Tikhonov repeated of the Victory at Kulikovo: 'In the ac­ coveted by Muscovy for centuries. the "Soviet Union entering the next complishment of the heroic national Stalin's target date for the acquisitions millennium" theme in a speech in An­ feat-the GreatVictory of the Russian was 1948-the 500th anniversary of kara, Turkey on Dec . 26. arms at Kulikovo-of special signifi­ the Russian Orthodox Church as an From the start of the Andropov­ cance was the power of the grace of autocephalous church, under the ex­ launched "post-Brezhnev era" at the the Christian Faith, the spiritual and clusive administration of the Moscow latest, one can document Gromyko's moral influence and patriotic service Patriarchate. regular use of phrases from the liturgy of the Russian Orthodox Church, By 1988, the Moscow Patriar­ of the Russian Orthodox Church. which has never remained apart and chate will have set up new headquar­ In June 1983, West German Dep­ indifferent to the historical lot of the ters in the huge Danilov Monastery uty Foreign Minister Alois Mertes, nation. From thevery beginning of her complex in the middle of Moscow, who speaks Russian fluently, was existence, now a millennium, she only four kilometers from the Krem­ amazed to hear Gromyko during his helped establish Russia's culture, na­ lin. Special workers and student bri­ visit to Bonn proclaim, "Security is tionality, and state . ' ''-Journal o/ the gades have been brought in to com­ the 'svyataya svyatykh' for the Soviet Moscow Patriarchate, Februrary plete the massive task in time. Similar Union." This expression is taken 1983. work brigades are busy throughoutthe straight from Russian Church liturgy. The year 1988, the 1,000th anni­ European partof the U.S.S.R. restor­ When the Orthodox priest emerges versary of the Christianization of Rus­ ing and reconstructing old Russian from the Ikonostas and shows the Sac­ sia, is three years away and the signs monasteries, church frescoes, and rament to the congregation, he says: of a celebration being prepared by an icons. "Svyataya svyatykh"-Holy of Empire-the Muscovite present-day Church and State are also con­ Holies. successor to Byzantium-with its ducting a campaign accusing Ronald On March 18, one week after the three-sided leadership of Party, Army, Reagan and Pope John Paul II of Central Committee named Mikhail and Church, are in full evidence. The launching a "crusade" against the So­ Gorbachov its new leader, the Soviet media have started conditioning the viet Union: Reagan for his Strategic government released a pamphlet con­ Soviet population for the magical Defense Initiative, and the Pope for taining Gromyko's speech nominat­ 1 ,OOO-year date. his crackdown against the "Liberation ing Gorbachov. Gorbachov, he said, Forthe Soviet leadership, the 1988 Theology" and related wings of the deserves to be made party secretary� date defines a "deadline" for achiev­ Roman Catholic Church working hand general because he upholds "the 'svy­ ing global predominance. in glove with the Russian Church and ataya svyatykh'-'the Holy of Hol­ This is not the first time that such political leadership to undermine the ies' -for us all in fighting for peace anniversaries have played a central role West. and maintaining our defenses at the in guiding Soviet Russian expansion- Gorbachov, who will clearly be necessary level. "

42 International EllR April 23, 1985 Vatican by Augustinus

Pope lauds 'lordship over nature' tion recently held at the Benedictine The speech of March 24 sounds like a polemic against the Abbey of Praglia in Padua (near Ven­ Benedictine greenies led by Milwaukee Archbishop Weakland. ice), where the famous "anti-capital­ istic proclamation" of the American bishops' conference was presented. In that context, the Archbishop of Milwaukee, Monsignor Rembert Weakland, one of the authors of the document, exhorted, "There is no Christian economy," a position large­ An extremely important speech on as the future laboratory of man's work: ly shared by the Jesuit Cardinal Mar­ the meaning of labor was delivered by "Please accept the expression of my tini of Milan. During the Benedictine the Pope on Sunday, March 24, during grateful appreciation for all of this, convention, IRI chief Prodi was at­ his visit to the Fucino valley, where and also the wish that your labor, so tacked because he came out for indus­ theul tramodern Center of Italian Space effectively employed for the use of trial development as the way to over­ Telecommunications has been space, one of the main protagonists of come the crisis of unemployment. established . the development of human activities Archbishop Weakland, former in­ Taking off from the first chapter in the coming decades, shall express ternational chief of the Order of St. of Genesis ("Be fruitful, and multiply, itself, in ever better ways, as the shap­ Benedict and present coordinator of and replenish the Earth, and subdue er of well-being and peace forhuman­ the U.S. Catholic Bishops' Pastoral it"), the Pope defined the divine mis­ ity as a whole." Letter on the Economy, upon his re­ sion of human labor, stating, "Therein In his speech on labor as the turnto the United States called for the is indicated above all God's intention expression of man's true dignity, dif­ International Monetary Fund to re­ of entrustingman with the task of self­ ferentiated from the lower beasts pre­ place the U.S. government in provid­ realization, conquering with his labor cisely because of his capacity to mod­ ing development assistance for Third a true lordship over nature." He con­ ify nature for the better, the Pope did World countries. tinued: "We are struckby the fact that not omit to denounce the problems of During a meeting at the Benedic­ in the Bible, God is manifested for the today-unemployment, hunger, and tine St. Vincent's Abbey in Latrobe, first time to the world and to the eyes poverty: "We must defeat themodem Pa., Weakland said he opposes in­ of man as the creator, that is, as one enslavements and promote laws which creased U.S. bilateral aid to the de­ who builds the world with wisdom and are ever more just and adequate, in veloping sector because that would "be goodness. God himself appears as a order to overcome, through every­ tied to military security pacts" with worker, in the figure of the architect one's commitment, the worrisome rate recipient countries. Better, the former or even in that of a craftsman. " of unemployment. Just as urgent is the Benedictine chief advised, to have the On the level of human existence, task of returning the fruits of the earth IMF step in. the Pope said, this means that "man to their providential destination, that His D.C. office also reports that can be himself and achieve the pur­ of relieving human hunger. " Weakland and his "pastoral letter" pose of his life, through the assiduous In response, the president of the sidekicks are organizing discussions commitment to transformation of state-owned conglomerate IRI, Ro­ in Catholic dioceses to win support for himself and an operational interven­ mano Prodi, who had previously held the pastoral, which revolves around tion into the world around him: over­ a 45-minute discussion with the Pope, replacing the conception of Genesis, coming obstacles, projecting new tookthe occasion tounderline that new thatman must have dominion over na­ conditions of existence, procuring the jobs can be created precisely by intro­ ture, with a pagan notion of man ex­ necessary goods for the body and spir­ ducing more advanced technologies. pressing "stewardship" toward na­ it, bread and culture." Prodi's arguments in favor of techni­ ture . This is the ideological core of Turning to the Telespazio work­ cal innovation during the Pope's visit West Germany's neo-Nazi Green ers , John Paul II praised the conquest sound like an open polemic against Party. of ever more modem technologies, some sectors of the Church close to This position seems all the more echoing the 1981 encyclical, Laborem the Benedictine order. difficult to sustain in the light of the Exercens, in which he Pointed to space For example, there was a conven- Pope's Fucino speech.

EIR April 23, 1985 International 43 Report from Paris by Laurent Rosenfeld

Destroying the Fifth Republic told de Gaulle (in 1944) that, before The new election system announced on April 3 shows Mitterrand the war, the French government fell cutting off his nose to spite his fa ce. so often that he sometimes could not rememberthe name of the French pre­ mier. President Reagan and his suc­ cessors might well have the same problem, insofar as cabinet stability will depend on complicated alliances and endless bargainings, in which no T he French Socialist governmentof take all the seats in the National As­ global policycan befirmly established. Fran<;oisMitterrand decided on April sembly. This was the basis for the Last but not least, this system de­ 3 to change France's polling system rather sound political stability of prives the voter of the chance to pun­ for the legislative elections. Sure of France in the last 25 years, since the ish MPs who have acted contrary to losing the next elections by a wide winning parties were usually not forced the voters' will, and, also deprives the margin, the government has done to make complicated deals with fringe deputy from individual decision on worse than simply decide to change partiesto form a cabinet, as is the case important matters. In the case of elec­ the rules in order to try to save what in the highly unstable regimes of tions, the deputies at the top of the could be saved. Rather than losing countries like Italy, Belgium, Israel, large parties' slates are automatically powerto the adversary parties, it has or France in the Fourth Republic, be­ sure of being reelected. Inother words, preferred to destroy the very base of fore de Gaulle's reform in 1958. it will be the party machines, and not power; for fear that the winning op­ In the new system, the parties will the constituency, which will deter­ position might undo what the Social­ run slates in each of the 95 depart­ mine who is elected and who is not. ists have done (or, rather, re-do what ments, and the numberof seats will be The voters might determine how many the Socialists have undone), they have proportional to the number of votes. seats one specific party gets, but not preferred to make the next govern­ The Socialist Party claims that this who gets elected. By the same token, ment impotent; rather than letting the proportional representation system will the party machines will be able to im­ oppositionseize thegovernment, they be fairer. But is it fair to change the pose "party discipline" in the votes of have preferred to make the country rules just before an election in order the Assembly, because those who ungovernable. not to lose? Is it fair to use the absolute would dare not to follow the instruc­ To understand what the reform majority that the Socialistshave in the tions of the party will simply not be at means, one should first know how the Assembly thanks to the previous sys­ thetop of the slate at the next election. previous system, set up by Charles de tem (they only got 37% of the votes) In that sense, this polling mode is Gaulle, worked. The French polling in order to prevent those who will win strongly anti-republican (most other system was based on the division of fromgetting a majority? But that, still, European countries with a proportion­ the country into about 450 voting dis­ is a relatively minor issue, in essence al system at least keep a "preferential tricts, each sending one deputy to the not very differentfrom t he almost tra­ vote" giving the voters a chance to National Assembly. To keep small ditional gerrymandering of polling chose individuals and not simply parties from spoiling the results, the districtsto get more seats. parties). polling system had two rounds. An It is ironic to note that the new The Socialists' absolute majority absolute majority in the polling dis­ system will allow the extreme right­ in the Assembly (once more , thanks trict was necessary in the first round. wing and racialist National Front to the former polling system) should In the second round, only those two or (Front National) of Jean-Marie Le Pen allow the reform to go through three candidates who were ahead in to receive anywhere from 60 to 100 smoothly, despite an almost total re­ the firstround could run, and the first seats in the Assembly. jection of this in the population. How­ one was elected. The bad thing about the new poll­ ever, there are a lot of Socialist depu­ This polling system tends to am­ ing system is that it will quite naturally ties who are against this reform, in­ plify the political trends, by favoring cause a return to Fourth Republic pol­ cluding the Socialist Party number the winner. Suppose that a party got itics, on two counts: political instabil­ three, Jean Poperen, and Agriculture in the second roundan absolutely even ity and the "regime of the parties." Minister Michel Rocard, who decided 55% in all polling districts-!t would President Franklin D. Roosevelt once to resign his portfolio.

44 International EIR April 23, 1985 Report from Bonn byGeorge Gregory

Tripping over the SDI figure out that Genscher is turning SocialDemocrats announce that those who swallow the SDI bait Bonn into the sort of place for which "will findthemselves hooked by the program as a whole. " Caspar Weinberger may not be able to find the address (like New Zealand) the next time he passes out invitations. Max Streibl, an executive member of Franz Josef Strauss's Bavarian Christian Social Union (CSU), writes Up to the early days of April, the Ehmke's Committee merely says in a recent issue of Bayernkurier, dominant andofficial line coming from publicly what the Free Democrats' "There is no choice for Gennany and any West Gennan government repre­ foreign minIster, Hans-Dietrich Europe but real participation in Rea­ sentative was, "only if we participate Genscher, has been saying in private: gan's SOl. Food for thought for the in the Strategic Defense Initiative "Once we get into it, there will be no Chancellor is that Genscher has hauled (SOl) can we hope to bring our influ­ way out." According to the coalition him back onto the foreign policy line ence to bear to assure that European arithmetic of the Kohl government in of his predecessor Helmut security interests areconsidered in the Bonn, there is only one "scenario" in Schmidt ....A foreign policy of the development of the program." which Kohl can be heaved out onto still-serving Foreign Minister That obviously cut two ways. the streets before general elections in Genscher inthe tow of Bahr and Brandt Some wearing that mask weresincere­ 1987: if the small FOP coalition part­ is intolerable and impossible." Theo ly interestedin the technological spin­ ner, and its strongman, the longest Waigel, the chainnanof the CSU Par­ offs of beam-weapon defense; some serving foreign minister among West­ liamentaryGroup in Bonn, insisted on to developing defenses against medi­ ern nations, Genscher, leaves the numerousoccasions that "the SPD re­ um- and short-range Soviet missiles in government. jection of SOl makes no sense .... Europe; and others to overthrowing Caspar Weinberger, Lt. General They are more concerned for the se­ Mutual Assured Destruction and its Abrahamson, and the President's Sci­ curity of the Soviet Union than ours or derivate Flexible Response (but only ence Adviser George Keyworth have the West's." That shoe is designed to privileged "sources" were willing to not only invited the Federal Republic fit Genscheras well. admit that insight into the SOl had to participate in SOl, but have also The knives are out for Genscher's developedso far) . All of that doescor­ invited Gennan scientists, industry hide. Theo Waigel and a growing lob­ respondto European security interests. representatives, and military people to by in the Christian Democratic parlia­ Others wearing the same mask, lookat SOl work in depth and on site. mentary group insist that "defense however, were merely convincedthat Bonn has yet to answer the invitation; against short range missiles is possi­ a niche on the inside of the program officialdomis behavingas if it did not ble, but only if we participate in the was a most comfortable position for know where to pick up the plane tick­ program. First, we have to give our sniping and sabotage. ets or find the hotel reservations. The fundamental 'yes' to the project, then Horst Ehmke, the Social Demo­ reason: Christian Democratic Bonn is we can worry aboutthe conditions and crat who chairs the opposition Social tryingto propitiate Genscher. the fonnof our participation." Others Democratic Party's committee on Genscher, in turn, makes no bones on the inside in Bonn are bombarding "Disannament and Arms Control," has of the fact that he enjoys a far deeper the chancellor and his Christian Dem­ announced thatthe niche on the inside "strategic meeting of the minds" with ocratic cabinet members with facts: does not effectively exist. In a recent Moscow's internalGennan propagan­ By waiting, Gennan industry loses resolutionof the Committee, we read da chorus, Horst Ehmke, Egon Bahr, short-tenn chances for 1 billion OM that, "involvement in the research Willy Brandt, etc., than the govern­ in initial research contracts. The SOl phase of the program (SOl) immedi­ ment he ostensibly serves at present. organization is making decisions on ately entails responsibility forthe ar­ Genscher would just as soon drop his the shape of thestrategic defense pro­ mament phase. . . . Those who swal­ mask completely, and let the govern­ gram every day, "and if we wait six low thebait of the technology will find ment fall. months, we will either have missed themselves hooked by the program as All of this is so obvious and bla­ the boat, or it will be at least very, a whole." tant, that some people have begun to very hard to get on board."

EIR April 23, 1985 International 45 International Intelligence

land's Jaruzelski that Germans, and not So­ These demands are that the Soviets leave (Free trade ': Jamaica viets, killed 4,500 Polish officers at Katyn Afghanistan, the Vietnamese leave Cam­ in 1940, said that the truth was that Stalin bodia, and the Soviets reduce their military going to pot ordered the massacre of Katyn "according forces facing China. Hu said: "Why to the secret protocol of the 1939 Hitler­ shouldn't we have relations of friendship AirJamaica was fined$13 million Jamaican Stalin Pact, the existence of which Moscow and good neighborliness with a socialist dollars by U.S. Customs for the three tons has always triedto deny." Hillgruber, who country which shares with us the longest of compressed marijuana found aboard one specializes in the history of fascism, said common border?" He added: "What are the of its aircraft in Miami in March. Parnell that "Stalin's class ideology equaled Hit­ three obstacles? I'm not sure." Charles,the Minister of Transportfor David ler's race ideology." Rockefeller's favorite free enterprise drug haven island, complained, "Jamaica cannot KGB slanders East afford to pay these fines and have our ships and planes confiscated by foreign govern­ Nazi-Communists head European refugees ments becauseof drug trafficking." Meanwhile, Jamaica's top anti-drug of­ Italian Green slate "A vicious defamation campaign" against ficial, Clem Shay, complained to the April Americans of EasternEuropean descent that The candidates of the new Italian Green Par­ 8 WallStreet Journal, "We never get the big "has served to promote the interests of the ty of Naples will include Radicals, former ones." To police the country which now KGB" is how Myron Wasylyk, director of members of the MSI (the fascist party), and supplies 13% of U.S. pot, he has 43 men, 7 the Washington office ofthe Ukrainian Con­ former members of left parties, in the next cars, no helicopters, and no radar. When he gress Committee of America, describedthe regional election on May 12, according to asksfor spare parts, there is no budget. Prime bogus "Nazi-hunting" activities of the Jus­ the April 10 Repubblica. "The Radical Minister Edward Seaga's government for­ La tice Department's Office of Special Inves­ Party (3% of the vote) will not run candi­ bids the use of sprayed herbicides. So his tigations and of the World Jewish Congress dates, in order to help the new ItalianGreen anti-drug job consists of getting together a on April 5. Wasylyk, whose organization Party (PVI) get more votes. The Naples slate crew of local policemen and chopping and represents more than I million Ukrainian­ includes Marco Pannella (the pro-drugRad­ burning a few marijuana fields. Americans, charged that "most of the evi­ ical leader), Enzo Tortora, who is on trial dence OSI is using is supplied by the KGB. for cocaine smuggling and mafia connec­ This is the issue as we see it. We'reall for tions, both European Parliamentarians for getting war criminals. But this is KGB-sup­ the Radical Party . plied evidence that's meant to defame East­ Jaruzelski covers fo r Also to be candidatesare Franco Vollaro ern Europeans, Baits, and Ukrainiansin the Stalin atrocity and Salvatore Caruso, both former members United States." of MSI; Telemaco Malagoli, former mem­ Tony Mazeika, national coordinator of Polish authorities recently installed a mon­ ber of the Italian Communist Party (PCI); and Elio Anzivino, a former communist­ a group which claims at least 30 million ument in Warsaw to "Polish soldiers, vic­ emigre followers of Eastern European de­ timsof Hitler-fascism, who lie in the ground socialistand now provincial secretaryof the PVI. Potential candidates arePietro Craveri scent, also charged that the World Jewish of Katyn." Katyn was actually the site of a Congress report on old Nazis is part of "an Soviet massacre of 4,000 Polish officers, and Rosa Filippini, Italian president of the environmentalist Friends of the Earth. abusive campaign-orchestratedby the Of­ following the Soviet invasion of Poland fice of Special Investigations--that is abso­ shortly after Hitler's invasion, on Sept. 17 , lutely criminal ....We have absolutely no 1939. Neither the previousGomulka nor Gi­ animosity-we want to work with Jewish erek government in Poland was so depen­ Soviets, Chinese start groups in the United States." dent on the Soviets as to have to sell the Soviet versionof the history of the atrocity, (normalization' talks commented World War German history II • Soviets supporting expertProf. Andreas Hillgruber, in an inter­ Soviet-Chinese "normalization" talks at view in the Germandaily Die Welt on April deputy foreignminister level began on April separatistgroups 10. 9 in Moscow. They will include four ses­ Cologne University professor Hillgrub­ sions of negotiations over the next two Separatistsfrom all ofFrance 's overseaster­ er also charged that the Soviet Union's "re­ weeks. ritories met April 5-7 in Guadeloupe, at a vanchism" campaign against the Federal Chinese Party General Secretary Hu Yao conference organized by the Guadeloupean Republic of Germany (West Germany) is a Bang hinted that the Chinese weresoftening separatistparty UPLG. Messages of support cover-up for crimesof the Hitler-Stalin Pact. in their insistence that the Soviets remove were sent by the German Greens, the Alter­ Hillgruber, responding to charges by Po- the "three obstacles" to "normalization." native group of the European Parliament,

46 International EIR April 23, 1985 , . Briefly

the Basques of Hem Batasuna, Corsicans, had recently met a top adviser to PLO chief • GORBACHOV "tremendously and the World Council of Churches, an or­ Vasser Arafat in Bonn, said he thought the impressed" Tip O'Neill during a ganization that is heavily influenced by the PLO had "matured." He said the most ur­ meeting on April 11 between the So­ Russian Orthodox Church. The conference gent priority for Israel was to give up the viet leader and 13 Congressmen, that organizers decided to create a permanent West Bank and Gaza Strip in return for a lasted almost four hours . House infonnation and coordination office in Par­ peace settlement in the region. "I'm inter­ Speaker O'Neill told reporters on is, and the Caledonian FLNKS announced ested in getting the best deal for Israel ," leaving the meetingthat there are"real plans for a 300,000-person demonstration Harkabi said. opportunities for expanded trade and in Sidney, Australia. cultural contact" between the United Xeronimo Saavadra, President of the States and the Soviets. Gorbachovtold Regional Government of the Canary Is­ the delegation that the Soviet Union lands, which is part of Spain, traveled to Albania's Stalinist wants "very big reductions" of stra­ Moscow on April 9 at the head of a five-man dictator dies tegic and medium-range weapons "if delegation for a week-long stay, to "rein­ the United States gives up provoca­ force still furtherthe already solid commer­ tive plans of spreading the armsrace On April 11, Albanian leader Enver Hoxha, cial relations between the Canary Islands to outer space. " Autonomous Governmentthe and U.S.S.R." 76, the last of the old generation Stalinist national rulers, went to that Great Goat The Canaries will be expressing their opin­ HU YAO BANG, Chinese gen­ Thieves' Residence in the Sky. Albanian • ions to the Soviet Fishing and Merchant Ma­ eral secretary, announced on April 1 0 President Ramiz Alia, 59, who has been a rine Ministers, who invited them. The Ca­ that 15% of the 21O-member Chinese Politburo member since 1961, an Albanian naryIslands arealready the seat of the larg­ Central Committee would be "re­ Fascist before "converting" to Commu­ est Soviet merchant marine base outside the tired" this year and replaced in all nism, and descendant of a Kossovo Alban­ U.S.S.R.; at no moment arethere fewer than cases by members younger than 60 ian family, has been named to head the Fu­ 5,000Soviet naval personnel on the islands. years of age, according to the London neral Commission and will be the immediate Guardian . Hu Yao Bang also de­ successor to Hoxha. Alia became President clared that 70% of China's senior of­ in November 1982, replacingHaxhi Lleshi, Sharon: Expand We st ficials in 136 Party and State Depart­ President since 1953. This happened as part ments will be purged by the end of Bank settlements of a major Albanian party and government 1985. He said the total of "retired" shake-up, during November, 1982, occur­ Party veterans will reach 2 million by Ariel Sharon demanded that Israel make a ring parallel with Yuri Andropov's assump­ the end of 1986. This purge will fa­ massive settlement drive on the West Bank tion of powerin the Soviet Union. cilitate the spread of China's euthan­ to ensure that every Arab center becomes "Enver Hoxha's death is certainto cause asia program to include the elderly, surrounded by a Jewish site . In an April 7 wide ripples of concern and the most wor­ which will require eliminatingcultur­ interview with Israel Radio, Sharon said: ried country will be Yugoslavia," the Lon­ al veneration of old people. "We must make sure that every single Arab don Guardian commented on April 12. populationconcentration is either in the midst Ramiz Alia, Enver Hoxha's successor as FRENCH EMBASSY of a Jewish settlement or near one . " He said Albanian leader, is known to be a firm ad­ • telexes Israel should rej ect any peace discussions vocate of "Greater Albanian" pretensions, were intercepted and read by the with King Hussein until Hussein breaks his including claims to the Yugoslav region of KGB , according to a report in the accords on regionaldiplomatic strategywith Kossovo, inhabited mostly by ethnic April 7 Le Point. The KGB managed Palestine Liberation Organization (PLO) Albanians. to monitor all dispatches between the chief Yasser Arafat . Sharon's statements are In November, 1984, during a visit to French embassy in Moscow and Paris a directattack on those Israelis who want to Bulgaria, Mikhail Gorbachov, now the So­ between the end of 1976 and 1982. cooperate with Egyptian President Mubar­ viet party general-secretary, said: "Our ak's Mideast peace plan, which he an­ country favors normalization of relations • DER SPIEGEL, the central KGB nounced in March. with Albania. With good will on both sides, outlet in West Germany, put out the However, Israeli factions opposed to differences can be resolved in the interests rumor in its Easter weekend edition Sharon asserted themselves when self-pro­ of the people of both states and the cause of that Bonn Defense Minister Manfred fe ssed "Machiavellian dove" Yehosofat peace and socialism." Womer, an SOl supporter, will be the Harkabi, formerhead of Israeli military in­ Insider sourcesstress that Gorbachov and most prominent victim of a reshuffle telligence, told Israeli journalists on April the Soviet military junta will treat Albania Chancellor Kohl plans in his govern­ 10 that Israel should recognize the PLO and as effectively a memberof the Warsaw Pact; ment afterthe state elections in North the rights of Palestinians to a state even if they pointout that a 1948 Albania-Bulgaria Rhine-Westphalia May 12. Israel doesn't like the PLO. Harkabi, who nonnalizationtreaty hasnever beenrevoked.

EIR April 23, 1985 International 47 TIillInvestigation

Threat to Europe: Why the Greens must be banned

by EIR's Wiesbaden Bureau

The dossier from which this Investigation has been drawn was released in February in France and the Federal Republic of Germany , as ammunition in a fight for the future of Europe . On Oct. 17, 1984 , Schiller Institute chairman Helga Zepp­ LaRouche proclaimed an international"Da y of Resistance" to the threat to Europe represented by the Greens. Over a million leaflets were distributed by Institute supporters worldwide, denouncing the Greens as the modem-day equivalent of the Nazis, and calling on patriots everywhere to "stop the new Green 1933." The Institute took out ads in four major European newspapers to underline the threat of a Soviet-backed "Red-Green" government in West Germany. As terrorism intensified through the winter, particularly against U. S. and NATO military targets, these warnings were starkly confirmed. The Greens in West Germany emerged more and more openly as supporters of the terrorist Red Army Faction (RAF) , as advocates of Moscow's "peace plan" for decoupling Europe from the United States, and as avowed proponents of "Brother Hitler." But the Schiller Institute's campaign had the Greens worried. Politicians from diverse political parties in Germany began to echo the Institute's call for a ban on the Greens as unconstitutional and a danger to the republican state . Green parlia­ mentarian Otto Schily, a lawyer who had gained notoriety for his defense of the RAF (Baader-Meinhof Gang), wrote a letter to Le Monde expressing his astonish­ ment that so "prestigious" a paper had agreed to publish the Schiller Institute's advertisement. Then in January, the Greens sued. The French, German, Flemish, Walloon, and Luxembourg Green parties sued Jacques Cheminade, president of the Schiller Institute in France, Le Monde, and its director Andre Laurens. They demanded 500,000 francs in damages and the publication of the court's ruling in five major papers . The current dossier is published as a counterattack. It contains more than 180 documents proving the accusations made against the Greens by the Schiller Insti­ tute-mostly through the words of the Greens themselves, or the statements of German politicians and publications concerned with the unconstitutional and fas-

48 Investigation EIR April 23 , 1985 The Greens are hailing "Brother Hitler" and supporting terrorism (Petra KeUy andRudolfBahro are shown here) . The SchillerInstitute andEurope41J sioppi Moskaus Labor Party (EAP) are campaigning to shut them down. The EAP's poster reads, "Stop Moscow's 5th . S. KOlon ! Column! End the Green Terror!" It depicts a high­ voltage tower o/ the KrUmmel nuclear power plant, r blown up byanti-nuclear demonstrators in January. Am 25. Januar 1985 . spren. Kernkraftgeg­ ner 2 Hochspannun...... "en ".... Kemkraftwerks

5chluB mil dem)( GRiiNEN 'ERRORI

Dii_.02111733 293O N ...... _,251 2543 __ . 05 11 13500'44 __ • 061 21 /3770 11 EAP _._/72 41021

NSJPS cist character of the party. and prominent Greens marched alongside RAPs ympathizers It is not only in Europe, however, that this dossier should in a Jan. 26 demonstration in Karlsruhe. Amid the maskCd be used as ammunition for those desiring to prevent the suc­ figures was Rudolf Babro, who servedon the Greens' exec- cess of Moscow's strategic designs. Despite the mountain of utive committee through December 1984. Banners pr0- evidence presented by EIR and other sources, the U.S. State claimed the "unity of the struggle between those inside and . Departmenthas continued its policy of active promotion of those outside [ of prison] ." At the headof the procession was the Green fascists. Since their inception, U.S. Ambassador a picture of Jonas Thimme, who a shorttime earlier had been to Bonn Arthur Bums has conducted a "dialogue" with them killed by one of his own bombs. that has included State Department-sponsored tours of the The Greens arefurther indictable on thef ollowing counts: United States and meetings with top U.S. officials. George­ • Their affinity with Nazism derives not only fromtheir town University's Norman Birnbaum, who is close to both ideology and economic program; the entire West Berlin sec­ the Greens and the left wing of the Social Democratic Party , tion of the Greens has been taken over by avowed neo-Nazis. reported in a recent discussion: ''The State Department is At the Greens' party conference in Hamburg lastfall , Bahro excellent on the subject of the Greens. They have them here compared the rise of the Greens with that of the National all the time. Our embassy in Bonn is very good to the Greens, Socialists, and Green member Rainer Langhansbaldly stat they always invite them to receptions. John Kornblum of ed, "For us, it is total war. And here we still have much to State is very good." learn from Brother Hitler. " ­ The report presented here provides the ammunition to use • They reject the democratic parliamentary system of against such traitors on both sides of the Atlantic. (The full the Federal Republic, and are public partisans of th* who dossier is available in French and German from EIR ' s Wies­ seek to destroy it. baden bureau.) • They are unabashed spokesmen for the interests of In defense against the charges of the Schiller Institute and Moscow. Bavarian Interior Minister Spranger has detailed others, the Greens smile fatuously and endlessly repeat the how the Soviet KGB is spending hundreds of millions of litany , "We arenonviolent. " Yet the terroristhard core of the deutschemarks annually to spreaddisi nformationthrough the RAP shades imperceptibly into the terrorist sympathizers, German "peace movement." the "legal arm" of the RAP, and the Greens. In January of Helga Zepp-LaRouche has called on German public fig­ this year, members of the Green caucus in the Bonn parlia­ ures to ban the Greens before the 40th anniversary of the ment demonstrated their solidarity with jailed RAP members Allied defeat of Hitler on May 8. This would be a fitting on hunger strike. Green parliamentarian Joschka Fisher de­ burialof Nazism, as well as a crucialsetback to Soviet schemes manded that the governmentgive in to the RAF's demands, for the SUbjugation of Europe. EIR April 23, 1985 Investigation . 49 when he demanded Vogel's resignation. National chainnan Wilhelm Knabe, who was once a member of the Hitler Youth, rejected the resignation demand, asking sarcastically, "Should Nazis discovered we, then, shoot down all leader-figures?"Green parliamen­ tarian Luise Beck-Oberdorf likewise spoke against Vogel's in the Green Party resignation, arguing that one should not be too hard on senior citizens. Look also at the case of Gustine Johannsen, fonnermem­ Since the founding of the Greens in 1979, EIR has docu­ ber of the Green national executive committee. Once active mented in detail that party's ideological kinship to the Stras­ within the NSDAP, Hitler represented for her a "glimmer of ser wing of the Nazi party (NSDAP), and its role as Gennan­ hope on the horizon." She, too, has not distanced herself y's new fascist stonntroopers. from Hitler fascism; on the contrary, she told the pro-Green

_ Consider the case of Werner Vogel, who was elected to newspaper taz that its "positive impulses" were ruinedby the the federal parliament in March 1983 on the Green slate in war. the state of North Rhine-Westphalia. During the Hitler re­ The Greens also immediately moved to back her when gime, Vogel had a leading position in the NSDAP and in the her past became known. Green leader Manon Maren-Grie­ Reich interior ministry, where he worked as an assistant to sebach, for example, described attacks against Johannsen as State Secretary Stuckart. (Stuckart was a participant in the a "hybrid witch-hunt against a worthy old lady." Rudolf infamous Wannsee Conference, where the Nazis' mass ex­ Babro thought he spied "the spirit of Robespierre" in the terminationpolicies were fonnulated.) Vogel himself is doc­ attacks. umented to have visited the Dachau concentration camp in Also noteworthy is the case of Luise Rinser, who in 1984 1938 on an official mission. To this day, he has never dis­ ran for the post of President of the Federal Republic. In 1937 tanced himself fromhis past. Following the parliamentary Rinser had composed the following hymn to Hitler: "We, the elections, he told the SUddeutsche Zeitung that, as concerns Fiihrer's select devotees ....We are Gennany's burning the Nazis tate, "Ithas always been my state; it was just poorly blood ...." managed." The Greens now no longer bother to deny their brown When thescandal about Vogel broke into the open, the origins. On Dec . 9, 1984, Rudolf Babro told the Seventh Greenswere determined to prevent his resignation. The tug­ National Congress that "the Greens, from a fonnal point of of-warreached a climax at an extraordinary party congress view, are structuredaccording to a model quite similar to that on April 23-24 in DUsseldorf, when those who demanded of the Nazis ... In confinnationof these facts, a leafletrecentl y action against Vogel were reviled as "puritanical anti-fas­ distributed by the Greens (Niekisch Group)rea ds: "Langhans cists." Oneolder member, who himself had been condemned and Babro are right to demand that 'we must learn the total to death during the Nazi period, was hissed off the podium warfare of our brother Hitler. ' "

The neo-Nazis could not have expressed it more blunt­ ly. Michael Kiihnen, a neo-Nazi who works closely with Greens seek to spark the Green movement, says: "I think less of the U.S.A. than I do of the U. S. S . R. ," and Nazi terrorists such as anti-Americanex plosion Odfried Hopp have gone on hunting forays to bomb Amer­ ican GIs in their automobiles. Neo-Nazi leader Karl-Heinz As befitstheir Soviet tutelage, the Greens have vowed to Hoffman declares: "The Greens would have to embrace expel Americaninfluence -and especially American mil­ me if they knew how Green I am." itary power-from Western Europe. To this end, they The Greens in Baden-Wiirtemberg are seeking to ap­ participatein regulardemonstrations and sabotage actions peal to the more backward 'instincts of the rural popula­ againstAmerican military facilities in West Gennany. tion, to incite them against "the occupiers." A spokesman A Green memberof parliament from Baden-Wiirttem­ for the Green regional office declared: "Farmers have berg , Thilo Weichert, put it this way: "We live in an enonnous rage in their gut. Especially in the area of Reu­ occupied land and the occupiers are the U.S. and NATO tlingen, Canadian troops have destroyed entire crops with armed forces. The victims are the children, homeowners, their tanktrea ds, without regard to protests from the farm­ car drivers. Our occupiers do not usually even know the ers. The next maneuvers could end in realfarm riots against Gennan language, let alone Gennan law. For these occu­ the soldiers. Many people think that. The popUlation has piers, ourenvironment is a huge garbage can." become politically more conscious."

50 Investigation EIR April 23, 1985 From the German Press

'A deadly threat to the republic'

Allgemeine Jiidiscbe Wocbenzeitung, the leading Jewish are living under the illusion that racism and anti-Semitism wee1cly in the Federal RepubUc of Germany, issued the within the Federal Republic are insignificant. This so-called following llttlJckon theGreens on Oct. 19, 1984: strategy paperteaches us otherwise." When at the end of the 1960s the NPD [neo-Nazi party] Siiddeutscbe Zeitung, Dec. 30, 1984: received a frightening surge of support from the voters, we sounded the alarm.... The emergence of the Greens, and JiirgenTodenMfer, a Christian Democratic parliamentarian, theirsuccesses especially, put us on guard because they shed said that unfortunately, over 90 percentof German voters are light on conditions within the established parties.... The completely ignorant of the fact that many leading positions impression persists, that the parties now holding office are in the Green party are held by anarchists, communists, and not yet frightened enough. Our warnings are still hitting up terrorists. As long as the Greens do not break with these, he against their armorof self-complacency. said, this representsa deadly threat tothe continued existence of the Federal Republic. Westdeutscbe Zeitung, Dec. 13, 1984: Bayemkurier, Dec. 1, 1984: Israel's ambassador in Bonn, Ben Arl, has accused some sections of the Greens of practicing anti-Semitism and a The cultural commission of the city of Munich, along with "Jews out!" policy. Commenting on a policy paper released the Bertelsmann publishing group, jointly sponsored a lec­ by the Greensjust before their visit to Israel, he said that "we ture series on the theme: ''Talks On Our Own Country: Ger­ many," at which the Bavarian Minister PresidentFra nz-Josef Strauss said on Nov. 24: The Greens in Hesse recently announced in a press "Susceptibility to romanticism is not typically German; release that theAmerican forces stationed there serve tlle it was mainly power-hungry politicians who utilized roman­ goal of''the destructionof Hesse and its population. " They ticism to their own ends," Strauss said, emphasizing that the have demanded that the regional government of Hesse Nazis particularly made use of "all irrationalist currents." "initiate criminal proceedings against the U. S. troops ." Although irrationalist currents were suppressed follow­ Hesse's Social Democratic interior minister has been re­ ing 1945, they reemerged with new strength in the course of markably open to this sort of proposal: He was the firstto the unrest in the 196Os, as a ''revolution in values" was condemnthe United States when the commanding general consciously promoted during the 1970s by the media and of the Fifth Corps of the U.S. Army lodged a complaint politicalfo rces.... about the state authorities' lax attitude toward terror at­ This movement is controlled and runby forces of a com­ tacks against American military installations. pletely differentnature . These forces are concernednot with protecting our forests or withpeace , but desireanother kind Last fall 's NATO maneuvers provided a pretext for a of state. There is no alternative, still in keeping with a state new explosion of terrorand sabotage actions. In Septem­ under law, to the power-sharing parliamentary democracy. ber, the Frankfurt Greens cemented up the explosive Whoever gets into bed with communists or with forces chambers of a Frankfurt bridge (intended for use by re­ preaching fundamental opposition to representative parlia­ treatingNATO troopsin case of a Soviet invasion). Green mentary democracy, who instead demands grassroots de­ parliamentarians Manfred Zieran and Jutta Ditfurth from mocracy and imperative mandates, and who even openly Frankfurttook partin the action. advocates violation of the law and use of violence . . . is sinning against democracy and against the state under law.

EIR Apri1 23, 1985 Investigation 51 The formation of Moscow's Green column against theWe st

"The Soviet Union and the Greens have congruent concep­ public, more people who will protest against the American tions on "the question of the rearmament of NATO ." So said presence. " Green parliamentarian Otto Schily on Oct. 28, 1983 at a press Ramsey Clark is not the only spokesman for Soviet stra­ conference in Moscow. The proposals of then-Kremlin head tegic policy in the United States. In the 1950s, the Soviet Yuri Andropov were extravagantlypraised by the Green del­ Union registered its first major successes with the Pugwash egation, while the allegedly warlike policies of President Conferences. There, the obsession of the Western oligar­ Reagan and "aggressive circles" in Bonn were sharply chy-to stop economic growth and technological progress in criticized. the United States and Western Europe-joined with the in­ It is really a truism to characterize the Greens as "Mos­ terestsof the Soviet Union, in disarming the West, not merely cow's Green cOlumn," since they make no secret of it. Yet militarily, but also economically. What followed was the today it is easier to catch East bloc spies than "agents of famous "Pugwash Process," a series of conferences at which influence," since the more influence they gain, the more Soviet representatives sat opposite their Western ideological difficult it is to stop them. confederates, who had the task of turning the conclusions The Greens and the so-called peacemovement which has arrived at into the defense policies of Western Europe and merged with them arose out of organizations which are, vir­ the United States. The result was numerous "arms-control tually without exception, closely connected with the oli­ agreements," which always served only to "gain time" for garchical establishment of the West, like theWorld Wildlife the Soviet Union to break the treaties secretly as soon as Fund, (WWF), the Club of Rome, Friends of the Earth, possible. One spinoff of the Pugwash movement is the Club Ecoropa, the Bundesverband Biirgerinitiative Umwelts­ of Rome, which became the godfather of the Green move­ chutz (Federal Union for Citizens' Initiative for Environ­ ment. And so the circle has been closed: The Greens have mental Protection, BBU), the Bertrand RosseU Peace now become the "beachhead" of Moscow's disinformation Foundation, and so forth . Green leader Petra Kelly is half propaganda. American and began her political career in the United States, where she lived until 1971. On her numerous trips to the United States, she is courted by American circles-particu­ Soviet subversion: larly in the State Department-working for the withdrawal theTreholt affair of U. S. troops from Europe and the strategic decoupling of Western Europe and the United States. To those circles be­ The subversive actvities of the Soviet secret service in long Henry Kissinger and his friends, along with former U. s. the 1970s were primarily directed against politicians of the Attorney General Ramsey Clark. In the mid- 1970s, Clark Socialist International, since in those days of detente there gained notoriety when he intervened on behalf of jailed Baad­ was as yet no Green movement. East German secret service er Meinhof terrorists and traveledto West Germany as a "trial (Stasi) agent Gunter Guillaume was assigned as a top aide to observer." Clark supported the Khomeini revolution in Iran, West German Chancellor Willy Brandt, to direct his detente and, shortly before the fall of the Shah, he appeared promi­ policies. nently at a demonstration in Teheran. As Guillaume began his activities in the chancellory, in Today , he is wildly enthusiastic about the Greens: "I hope Norway a KGB agent also went to work: Arne Treholt, the they are the wave of the future. I am very impressed with KGB colonel, rose to the position of press secretary and them.... With their electoral successes, they have been departmental head in the foreign ministry before he was ar­ able to establish a beachhead and I hope it will grow." A rested in the Oslo Airport on Jan. 21, 1984 with a suitcase beachhead for whom? This question was immediately an­ full of secret papers. Although Treholt had access to secret swered by Clark, as he took a stand against American armed NATOdocuments , which puts him among those fromwhom forces in Europe: "I fear, [U. S. Defense Secretary] Weinber­ the Red Army Faction (RAF)" terrorists could have learned ger can sleep peacefully for the moment in the hope that the the locations of NATO supply pipelines, the activity of this troops will remainfor a very long time. I hope not. We need master spy did not consist of mere espionage. According to more actions, more people in the streets in the Federal Re- Norwegianand Italian newspaper reports, Treholt confessed

52 Investigation ElK April 23, 1985 thathe had been responsible for guiding the peace movement Socialist Unity Party (SED) for over 20 years, since 1952. in Scandinavia and in Northern Europe. He was the author of But he disagreed with theSoviet invasion of Czechoslovakia a proposal published in 1979 for the creation of "nuclear­ in 1968, and in 1975, when East German officials rejected weapon-free zones in Scandinavia." The purpose of this op­ his doctoral dissertation because of its "inadequate scientific eration was nuclear disarmament of all of NorthernEurope . basis," he became an official "dissident." He smuggled a The founding of the so-called Palme Commission stems from manuscript of Die Alternative:Zur Kritik des real existieren­ the Treholt proposal; after the arrest of Treholt, the commis­ den Socialismus (The Alternative: Toward a Critique o/ Ob­ sion did not even consider altering its policy of "nuclear­ jectively Existing Socialism) into the Federal Republic of weapon-free zones"! Germany (F.R.G.), and was arrested in 1977 when Der Spie­ Treholt, a member of the Soviet secret service for 15 gel published an interview with him and announcements of years, received his orders from KGB Gen. Genadii Titov, the book began to appear. At his trial, he was accused of who had been deported from Norway in 1977 because of his illegal and treasonous dissemination of informationfor which secret-service activities. Treholt's direct superior was Col. he had been paid 200,000 deutschemarks. He was sentenced Leonid Makarov, the KGB rezident in the Soviet embassy in to eight years in prison, but after only two years' imprison­ Oslo. Previously, in the maritime-law conferences between ment in Bautzen, he was granted amnestyin 1979 on the30th Norway and the Soviet Union, Treholt had rendered his su­ anniversary of the G.D.R. and released-not only frompris­ periors a great service. As negotiator for Norway, he con­ on, but also from East Germany. trived the "gray-zoneagreement" of 1977, in which the So­ It would be naive to thinkthat this event stemmed merely viets were given outrageous concessions, including fishing from the desire of G.D.R. officials to be rid of Rudolph rights in the Barents Sea-the only possible outlet for Soviet Bahro.We must proceed from the assumption thatthe G.D.R. nuclear submarines intothe Atlantic ! leadership and the Ministry for State Security (Stasi) quite The tactic of bringing Westernpoliticians into line behind consciously formulated a plan for a tactically "productive" the policy of "nuclear-weapon-free zones" was , however, deployment of their dissident into West Germany. For that more than rights in the Barents Sea, and had two goals: the reason, a deal was made with Rudi: Since an exchange of establishment of a denuclearized belt along the western bor­ Bahro for Stasi agents in the Federal Republic would have der of the Warsaw Pact, and the decoupling of Europe from failed because. of Rudi' s non-cooperation and a presumed the United States. Europeans would be manipulated to refuse lack of Western interest, he was allowed to go free withouta to station American intermediate-range missiles, while in the tradeoff. In a February 1979 letter from Bautzen to admirers United States arrangements would be made to make sure that in the West, Rudi wrote: "I intend to leave the G.D.R. but American troops would be withdrawn from Europe. Not ev­ without hostile feelings . . ..I too am certain that there is a erything went according to plan, but this Soviet gameplan is job for a convinced Marxist and Communist such as myself still very much alive. in Western Europe and especially in West Germany." And so it was. Bahronot only promptlyjoined thens, Gree but immediately went to work to broaden their perspective, Bahro goes West from environmentalism to "the nuclear disarmament of Europe ." In order to destroy the Social Democracy from within, In the spring of 1982, on the basis of a 1980 appeal from Palme and Brandt were not sufficient; a new mass movement the Bertrand Russell Peace Foundation, Bahro wrote, with was necessary, the Greens. They were at firstsimply a move­ Michaela von Freyhold, a Charter for a Nuclear-Weapon­ ment against nuclear power plants, which became increas­ Free Europe, which was to be discussed at a European Con­ ingly militant. Their first phase ended with the founding of ference for Nuclear Disarmament in July 1982 in Brussels. the Green Party in 1979 and the merging of the anti-nuclear Bahro's demands were exactly the same as those of KGB and environmentalist movement with the violent Berlin "house Col. Arne Treholt: squatters" and the so-called peace movement. Before 1980, the Greens had been only marginally concerned with ques­ An atomic-weapon-free Europe, from Poland to tions of military strategy. During 1979, at the latest when Portugal, that withdraws from bloc confrontation.... NATO made its "double track" decision on the stationing of Were Europe not for the most part integrated into intermediate-range missiles, another decision was made in NATO and therefore the staging area for the United Moscow, among other places: to retool the Green environ­ States, the Soviet Union would not hang onto Poland mental movement as a "peace movement" in the Soviet sense. and the rest of East Europe in the way it does now. . . . Precisely at this time, a new star appeared for the Greens in We propose to the members of the peace movement the eastern sky: Rudolf Bahro left the German Democratic that they demand of their municipal and regional au­ Republic (G.D.R.) and quickly became the Greens' chief thorities, and, above all else, of the governments of ideologue. their countries, that those authorities declare the ter­ Bahro had been a loyal member of the East German ritories for which they are responsible to be nuclear-

EIR April 23, 1985 Investigation 53 weapon-free zones, without preconditions, merely on representing an increase of 40 million DM from previous the basis of support from their populations. . . . years. Interior Minister Friedrich Zimmerman did not hesi­ A nuclear-weapon-free zone is characterized by tate to connect this with the Greens: "The Communists have the fact that in those territories-on land and sea-all incorporated into their program the explicit instructions that development, production, and stationing of national the Greens and all others who play a role in the so-called or foreign nuclear weapons . . . is discontinued. . . . peacestruggle , are to be infiltrated," and that it was therefore Those territories will also not claim any protection quite likely that the Greens are being indirectlyfinanced from through nuclear weapons fromother powers. . . . The the East via the· Communists. demand for the withdrawal of all ABC [atomic, bio­ The end of 1982 marked a new phase in the metamorpho­ logical, chemical--ed.] weapons naturally has the sis of the Greens into Moscow's "green column." The East consequence that all troops, including conventional German SED initiated a shift in the East's official policy troops of nuclear-armed powers, that is, powers com­ toward the Greens, who in the meantime had entered many mitted to a nuclear strategy, are also withdrawn .... state parliaments and were on the march toward the federal Civil-defense efforts against nuclear threats will cease, parliament. Whereas the official East bloc press had previ­ since such efforts . . . nourish the illusion that there ously labeled the Greens "petit bourgeois-utopian and ene­ could be protection against nuclear war and that there mies of progress," the SED Central Committee's new issue could be any sense to surviving a nuclear war. of its handbook for party workers stated that "the Greens [All this should be] "incorporated into the consti­ have especially become a gathering point for young people tutions of all European nations ....The obligation who, although they hold heterogeneous views, ...agree in will be incorporatedinto theoath of all militaryofficers their great dissatisfaction with the system and its lack of that every breach of the declared and defined status perspective." The important elements of the Greens' pro­ of the nuclear-weapon-free zone and any justified sus­ gram, according to the SED, are their fight against NATO's picion of any such breach shall immediately be re­ stationing of the Pershing missiles and their fundamental ported to the public." opposition to nuclear power plants. Bahro was a part of the same operation that Colonel Only a few months later, on Ascension Day 1983, the Treholt was running in Scandlnavia-a Treholt without the firstdelegation of Greens traveled to the G.D.R. Otto Schily, secret-agent packaging. It is striking that in every new tum who had negotiated the trip in private sessions with the of the Greens, it is always Bahro who acts as the pacesetter. G.D.R. 's permanent representative in Bonn, Moldt, later Since arriving in the F�ral Republic, he had gone through . said he felt "duped" when the Green delegation's demonstra­ so many personality changes that either he is a schizophrenic tion on Alexanderplatz in East Berlin was abruptly halted by or his schizophrenic behavior is the mask of an agent�r, startled East German police officers. But only days later, most probably, both. there arrived a letter from SED chief Erich Honecker, per­ sonally addressedto "Dear Mrs . Kelly," in which he assured Petra Kelly that Soviet leader Yuri Andropov, as well as the The GermanCommunist Party auld G.D.R. government, are "in favor of a nuclear-free zone in the peace movement Central Europe, will dedicate the entire territory of the G.D.R. to this purpose, and would welcome it, if the Federal Repub­ After the anti-nuclear movement was remodeled into the lic of Germany also assumed a positive attitude toward this "peace movement," it was but a short step to the formation and would participate in negotiations on the necessary agree­ of the pro-terrorist anti-NATO movement. The influence of ments. As you know, the U.S.S.R. also supports these pro­ the German Communist Party (DKP) and its numerous front posals. With best regards, E. Honecker." organizations continued to grow (see the command structure By the end of October 1983, the Greens were on their charton the opposite page). way to Moscow, and from there to East Berlin for a second In an October 1983 interview with ARD television in visit with Honecker. West Germany, the president of the Federal Office for the The Green delegation--Petra Kelly, Luise Beck-Ober­ Protection of the Constitution, Heribert Hellenbroich, blunt­ dorf, Gen. (ret.) Gert Bastian, Otto Schily, Jfugen Reents, ly statedthat the peace movement is controlled bythe ortho­ Manon Maren-Griesebach-was granted visas, along with dox Communists of the DKP and its frontorganizati ons, and exiled Czech Milan Horacek, and met with Central Commit­ is largely financed fromthe Ea st. He estimated the hard core tee members Boris Ponomarev and Vadim Zagladin and nu­ of the militant peace movement to number 150,000orthodox merous other Soviet representatives. Schily had a special Communists and another 10,000 "autonomous" leftists. separate appointment with Izvestia commentator Valentin In Spring 1983 the federal interior ministry ascertained Falin, followed by a press conference in Moscow announcing that the DKP was receiving annually 100million deutsche­ that the Soviet Union and the Greens were in complete agree­ marks from the East German Socialist Unity Party (SED), ment that no American intermediate-range missiles should

54 Investigation EUR April 23, 1985 Channels of Influence of orthodox Communists on the peace movement In the Federal Republic of Germany

International level International front organizations -:•• Soviet mass : organizations � I .

·· National · · level I · � -GDR- I I I : 1 .� ...... J..•.. � L--.,..-� l I l : I : .: I : -=-:+___ .&- __ ..l_ \�

--- Control ---- Influence democratic damocrlllc population tarvatgl1lUJll targetgroups From: Innere ...... Collaboration, Sidlerheit, No. 68. contacts Augus1 12. 1983

Abbreviation.

CFA-Christiansfor Disarmament KomeomoI-SovietLeninist Communist YouthAssociaIiQn DFG-VK-German PeaceSociety-United Draft Resisters CPSU-CommunistParty of the SovietUnion DFl-DemocraticWomen's In itiative MSB-MarxistStudent AllianceSpartakus DFU-German Peace Union SED-SocialistUnity Party(ruling partyin GDR) DKP-GermanCommunist Party SDAJ-GermanSocialist WOIkerYouth FD.J-FraeGerman Youth VDJ-AssociatlonDemocratic of Lawyers in theFederal Republic of Germany IMSF-Institutefor Marxist Studies andResearch andWest Berlin "P-YoungPioneere-Sociallst Childrens' Organizations VVNl8dA-Association ofVictims of the NaziRegime- AntIfascist Alliance KFAZ-Committeefor Peace, DIsarmamentand Cooperation WBDJ-Worid Federation ofDemocratic Youth Kl-Krefeld Initiative WFR-WoridPaace Council

EIR April23 , 1985 Investigation 55 be permitted in Western Europe , but that instead a "nuclear­ with the visit to Bonn of a high-ranking Soviet delegation in free zone" should be set up and "both military blocs" dis­ late November 1984. For three days, the Green caucus in the solved. Manon Maren-Griesebach, speaking for the Green Bonn parliament conferred with representatives of the Su­ parliamentary fraction, stated on Nov. 2 that Moscow's de­ preme Soviet and the Soviet Central Committee. The dele­ sire for peace was "more credible" than that of the United gation was led by an expert on "parties and movements in States. Schily went so far as to parrot the Soviet threats of a Western countries," who was presumed to be an officer of preventive nuclear strike against the West. the KGB . The next station was East Berlin. This delegation-in­ One of the first spinoffs of these talks was the release of cluding Kelly, Schily, Antje Vollmer, Bastian, Lukas Beck­ portions of the Greens' party platform for their national con­ mann , Dirk Schneider, and even Gustine Johannsen (see gress in Hamburg, whose points included halting all military article, page 50)-met with Erich Honecker, and the chair­ and civil defense efforts and the West's unilateral disarma­ man of the state council signed a "personal peace treaty" with ment, since, it claimed, any attempts at military resistance the Greens. on West Germany's part would lead to its certain destruction. That was enough public relations for the time being, and One Green delegate, August Haussleiter, was so inspired the next year was devoted to unpublicized meetings. It was by the Soviet visit, that his discussion paper presented to the not until November 1984 that there was a new burst in the Hamburg party congress included the following crowning Greens' East diplomacy, with Dirk Schneider and Antje formulation: In order to ensure peace, all Allied armed forces Vollmer meeting with Herbert Haber, Central Committee should be withdrawn from West Berlin, and all of Berlin member of the SED . The SED's newspaper Neues Deutsch­ should be handed over to the United Nations and a joint East­ land wrote: "Herbert Haber explained the G.D.R.'s peace West German committee. The draft also demanded the cre­ policies to the guests from the F. R. G. . . . There was general ation of a "European Security Council" consisting of all Eu­ agreement that efforts had to be strengthened toward halting ropean governments, including the Soviet Union, with the the arms race [and] above all, preventing the militarization United States having observer status only. of sp ace [emphasis added] ." During the same period, Green The author of this masterpiece of Nazi-communist pro­ delegations visited Bulgaria and Romania. paganda was lavishly praised by Pravda and the Soviet news This activity recently reached a new peak of intensity agency TASS as a fighteragainst "German revanchism."

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56 Investigation EIR April 23, 1985 Libya's Qaddaft · backs the Greens

The attempted assassination of former Libyan Prime Minister Abdul Hamid el-Bakoush on Nov. 17, 1984, cast unexpected light on LibYaI! dictator Muammar Qaddafi's favorites in Germany-the Greens. When Egyptian President Hosni Mu­ barak exposed Qaddafi's failed murder plot against his exiled political opponent, and warned of the existence of a hit list of world leaders that included German Chancellor Helmut Kohl, the Greens leapt to Qaddafi's defense. The Green­ alternative newspaper published in West Berlin, tageszei­ Libya's Qaddafi:"] view the Green movement in Germany very tung. commented on Mubarak's warnings in an article with . positively . . the sarcastic headline, "QaddafiUnmasked-Kohl Saved," and published a sympathetic review of a book titled Gaddafi mentary democracy. in Selbstzeugnissen (Qaddafi Speaks/orHim self). In April 1983, Qaddafi gave an interview to the right­ This Green-Libyan fraternization goes back years: extremist national-revolutionary rag Wir Selbst. in which he In March 1982 in Vienna, the first official meeting took boasted of hi!\new allies: place between Qaddafi and German, Austrian, Italian, and Swiss Greens and members of thepeace movement, at which I view the Green movement in Germany very posi­ financial support for the Greens was discussed. Among the tively ....I hope that a movement develops out of participants werethe following members of the German Green the Green movement for the liberation of all of Ger­ Party: Otto Schily, Alfred Mechtersheimer, and Roland many . You must invent new methods of struggle against . Vogt. the oppression of Germany. Schily, the former lawyer for Red Army Faction (RAF) Colonel Qaddafi didnot hesitate to justify Hitler's seizure terrorists, became a member of parliament in his capacity as of power as a reaction to "foreign domination," which, he executive member of the Berlin Alternative List, a group said, exists again today because of the Americans. which praised Qaddafi as a "philosophical genius." Mech­ tersheimer, a former member of the Christian Social Union And so I endeavor to understand the epoch of Hitler's party , has contacts, not only with Qaddafi , but also with the fascism as a phenomenon which was the necessary Soviet ambassador in Bonn, Vladimir Semyonov, and sup­ consequence of the defeat of Germany in the First ports "non-violent actions" against NATO bases. Mechter­ World War and the subsequent overly harsh peace sheimer maintains contact with Libya through Sepp Auer of conditions imposed by the victorious powers. A sim­ the Vienna North-South Society, which has close financial ilar situation exists in Germany today . We again see ties to Qaddafi. Vogt, also a Green parliamentary deputy, Germany ruled by foreign diktat. Against such oppres­ had close relations with both the Libyan and American am­ sion of the people by a foreign power, opposition must bassadors in Bonn. He is a supporter of the Islamic funda­ spring up ....In Germany, a movement of eman­ mentalist movement of Algerian exile Ahmed Ben Bella. cipation must develop which uses all positive possi­ In May 1982, Libyan Ambassador Mehdi M. Imberesh bilities to eliminate foreign military bases. and other members of the embassy staff appeared at a large Qaddafidid no( attempt to hide his goal: the restructuring gathering of the Greens at the Hambach Festival and em­ of Germany with the assistance of the Greens , on the model braced Vogt and the militant leader of the U.S. "Plowshare ' of Libya: Group," Daniel Berrigan, on the podium. In June 1982, an 18-member delegation of Greens, an­ Germany could also become a Jamahiria. a people's archists, and separatists was granted an audience with Qad­ republic of the masses ....That is your task .... dafi in his bedouin tent. Among those present were again The transitional phase to the self-conscious life of the Vogt, Mechtersheimer, and Schily, as well as Gertrud Schill­ people we call the phase of revolutionary committees. ing, who later cheerfully advocated the elimination of parlia- That is the phase of the Green movement.

EIR April 23, 1985 Investigation 57 ITillNational

Bipartisan trade-war drive promotes economic suicide

by Nick Benton

The United States is Junging into the April-May round of can" only served to underscore the savage dedication to both crucial international economic negotiations with an unprec­ strategic and economic suicide of the bi-partisan "freetrade" edented bipartisancommitment to economic suicide. maniacs in the United States. As we warned in an Executive The tonefor the talks-beginning withthe Paris meeting Intelligence Review Document in the Economics report of of the Organization for Economic Cooperation and Devel­ our last issue, the effect of trade war measures against Japan opment(OECD) on April 11, through the series of meetings will bring down the Nakasonegovernment, which is current­ around the Washington D.C. assembly of the International ly giving crucial support to the Reagan administration's Stra­ Monetary Fund (IMP) Interim Committee on April 17, and tegic Defense Initiative. Thus the "free traders" are serving culminating with the May 3-5 Bonn economic summit of the interests of Moscow and its U.S. agents-of-influence, leading industrial nations-isbeing set by the raging hysteria like Henry Kissinger, who 'oppose the SDI. to punish Japan for the collapse of the U. S. economy, all in Signals of growing anti-Nakasone dissension within his thename of "freetrade ." own rulingLiberal DemocraticParty were, indeed, gleefully Before recessing for Easter on April 4, the House and reported in all the major Eastern Establishment press in the Senate overwhelminglypassed non-binding resolutions call­ United States following his broadcast. ing for "retaliatorymeasur es," threateninga tradewar against In the meantiJ:,ne, also, the broadcast only served to fur­ Japan because of its $36.8 billion trade surplus with the ther whip up thepassions of the "free traders" of theCongress United States. Themargins were 92-0 in the Senate and 394- and American "business community." Former U.S. trade 19 in the House. This was followed by a vote of the Senate representative Bill Brock led the pack, insisting that Naka­ Finance Committeeto put a binding law onto the floor. sone did not offer any "concrete action" in his TV appear­ These moves compelled Japanese Prime Minister Yasu­ ance, nor did the report of a Japanese advisory committee hiroNakasone to go on Japanese national television on April headed by formerForeign Minister Saburo Okita. 9 for an urgent appeal to his population to avert a trade war Brock's remarks were echoed by Missouri Sen. John C. by increasing purchases of American imports, although he Danforth, a Republican, who introducedthe binding bill that still correctly insisted that the trade imbalance was not Ja­ passed the Senate Finance Committee by a wide margin in pan's fault-but the result of the strength Japaneseof indus­ the first week of April. "This is just a package of promises, " try, the weakness of U.S. industry, and the artifically over­ he said. Democratic Congressman John Dingell from Mich­ valued dollarthat is creating the false illusion of a "recovery" igan added, "Nothing has changed." Rep. Don Bonker (D­ based on an overall U.S. trade deficit of $123.3 billion in Wash.) chimed in thatNakasone 's package is "riddled with 1984. gaping loopholes," while Sen. Bob Packwood (R-Ore.), However, Nakasone's dramatic appeal to "buy Ameri- chairman of the Senate Finance Committee, also dismissed

58 National EUR April 23, 1985 the Japanese moves as "nothing new. " ment by the American Gen. Douglas MacArthur in the Jap­ "It will be a benefitto both nations," remarkedSen . Lloyd anese postwarreconstruction . Bentsen (D-Texas), a supporter of retaliation, to "get back to According to official labor statistics, Japan remains the free trade ." only one of the industrial powers in the non-communist ad­ A chorus of "boos" against Nakasone also came from vanced sector to continue to show growth in the size of its American trade and "business community" interests. For ex­ industrial labor force (see page 4ff.), and the effort of U.S. ample, the National Association of Manufacturers, the Ad­ threatened trade war with Japan is therefore to drag the Jap­ visory Council on U.S.-Japan Economic Relations, the anese economy down to the levels of industrial collapse of American Electronics Association, GTE International, the the United States. American Chamber of Commerce in Japan, and the Electron­ "We cannot deny the possibility that some industries may ics Industries Association, were all critical of Nakasone's suffer pain because of the enforcement of these new trade response to the trade-warthreat . policies," Nakasone confessed. Donald Regan, the White House chief of staff who has wielded his considerable influence to push the "free trade" Other allies will be attacked ideology upon the President, reported Reagan's pleasure at But as the United States prepares to move into the critical Nakasone's apparent effort to address the trade imbalance round of economic negotiations, it is not only the threatened problem. But Regan added his voice to the trade-warrior trade war with Japan, but U.S. pressures to collapse all the chorus, intimating that Nakasone's measures "did not go far economies of our trading partners, that points up the scope enough." of riskto the nation's strategic security involved. And, while President Reagan remains personally misled As Treasury Secretary James Baker ill moved to Paris by the "free trade"myth, the strategic implicationsof losing for the OECD meeting on April 11, he was expectedto launch the Nakasone government, as EIR warned, have perhaps not the administration's proposal for a new round of General been entirely lost on the administration. Vice-President Agreementon Trade and Tariff (GAIT)talks for 1986 aimed George Bush attacked congressional attempts at trade war in at an escalation of measures to breakdown national barriers a speech to the Export-Import Bank on April 9. Retaliation, to "free trade." While European nations are correctly pro­ he said, would "backfire" on the United States. testingthat the U. S. dollar is overvalued by a factor of three, the United States is fueling Socialist International efforts to Japan should become weaker? break Europe from the dollar (in favor of a Soviet ruble­ Nakasone attributed his nation's industrial strength to convertible European Currency Unit, the ECU) by crudely "the national character of Japan," which makes it a country insisting that the Europeans "streamline" their economies, that "takescare of its people well in order to prevent disasters eliminate "restrictive work rules" and "government impedi­ or other problems. " ments to startingw ne businesses," and implement tax cuts. As a result of this policy, he said, "the quality of tele­ Similarly,the United States' expected continuation of its phones or the inspection of drugs, for example, have become support for the International Monetary Fund (IMF) at its higher than in other countries. By international standards, interim meeting in Washington threatens not only to perpet­ the Japanese government intervenes too much. Now we are uate the famine and uncontrollable pestilence sweeping Af­ asked to restrict the government's intervention and let con­ rica, but to drive deeperwedges between thecollapsing U . S. sumers and clients judge safety and quality for themselves." economy and the developing nations it is exploiting to prop In these remarks, Nakasone made it clear to his popula­ up thephony recovery. For example, while U.S. spokesmen tion that the United States is threatening retaliatory trade war gloated that the recent Mexican compliance withthe IMFto in order to lower the quality and standards of Japanese pro­ implement an import stimulation program called "Dimex," duction-that is, to make the United States more "competi­ represented "potentially the biggest dent in Mexican protec­ tive," not by improving the quality of U.S. production, but tionism in decades," a Mexican government economic pro­ by lowering the quality of Japanese production. nouncement made no mention of the program this week. The irony is that Prime Minister Nakasone in his nation­ Instead, mass demonstrations, led by the Schiller Institute, ally televised address was only pointing to Japan's applica­ against the IMF, beganunfolding throughout lbero-America tion of a sane economic policy which has been abandoned by with a 4,000 turnout in Lima, Peru April 8. the United States. On the history of this policy, the "free Perhapsit isonly shocks concerningthe military-strategic traders" in the United States are woefully or willfully igno­ implications of IMF and related "free trade" policies-like rant. Japanese industrial policy was originally developed by that manifested by Defense Secretary Weinberger April 2 at that country's patriots as an echo of the American System the Pentagon when an EIR correspondent reported to him policiesof Alexander Hamilton, Henry Carey, and Erasmus IMF designs on oversight control of the U. S. defense budg­ Peshine Smith, in the 19th-century "Meiji Reformation," and et-that will awaken Reagan and the Congress to the pro­ was supported as the basis for renewed economic develop- found folly of the nation's current economic course.

EIR April 23, 1985 National 59 Inside the Pentagon by Tecumseh

Shultz's 'speculative hope' lying conditions that affect U. S . -So­ The murdered Major Arthur Nicholson fo rewarned us of the viet relations have changed dramati­ consequences of the secretary's outlook on the Russians. cally." As the Soviets moved boldly in Angola, Ethiopia, and Afghani­ stan, he continues, "they had reason for confidence that what they call the global 'correlation of forces' was shifting in their favor. ...We [now] have reason to be confident that the 'correlation of forces' is shifting back in our favor." It has been said that the ultimate test osophical rejection of mutual deter­ Therefore, when confronted with of an intelligence evaluation comes rence through assured destruc­ displays of Soviet brutality, "our ob­ when the intelligence officer must tion .... This militaristic approach jective should be to act in a way that stakehis life or the lives of others on to the problem of strategic warfare fre­ could help discipline Soviet behav­ the validity of his analysis. To those quently alarms the Western observer. ior ....At the same time, our pos­ who see national intelligence esti­ In defense, he tends to dismiss the ture should not leave our own strategy mates as issues of life and death for doctrine as a bluff, or to refute it on vulnerable to periodic disruption by the republic, and not as academic ca­ grounds that it is irrational or primi­ such shocks [emphasis added.]." reer pursuits, these excerpts from the tive. Such thinking is perilous. Soviet To Shultz, the mobilization of So­ master's thesis written by U.S. Anny doctrine should be accepted for what viet forces for war in Europe, and the Major Arthur D. Nicholson, Jr. in 1980 it says. When facing an opponent over murder of an intelligence officer re­ stand in testimony to an officer who an issue as vital as survival, is it not sponsible for reporting such threats , is died in serviceto his country: more prudent to take him at his word merely a "disruption" we should "Are the interests of the Soviet given credible evidence as to his sin­ ignore. Union sufficiently convergent with cerity, than to chance the future to And why not, for an administra­ those of theUnited States as to consti­ some speculative hope that his state­ tion conditioned to ignore even the tute a foundation upon which greater ments lack commitment? most shocking evidence of vital weak­

stability canbe built? . . ". . . The United States should re­ nesses in its economic capacity to mo­ "Soviet military doctrine calls for examine its strategic doctrine with the bilize for national defense? For Shultz, a superiority of forces, both tactical objective of further reducing empha­ Regan, and the President's other andstrategic , as a preconditionto vic­ sis on the concept of 'mutual deter­ "handlers," the myth of "economic re­ tory. In this regard, it is helpful to rence' as the key doctrinal principle. covery" takes precedence over the facts recall that Soviet doctrine posits su­ The United States would be wise to demonstrating that the next Soviet periorityof forces, especiallynuclear, take heed of the Soviet observation "disruption" will findus economically as the first law of warfare. . . . The that the prospect of nuclear war has incapable of response. Soviet Union doesnot share the West­ two dimensions: the necessity of its Gorbachov , for his part, has dem­ ern view that strategic superiority is prevention, and the possibility of its onstrated th� contempt he holds for the an undesirable, unattainable, or des­ being waged." "mythologists" controlling U.S. poli­ tabilizing condition. . . . Capitaliz­ The pathetic response by the White cy: The early April "offer" to stop de­ ing on key principles of surprise, early House to the murder of Major Nichol­ ployment of SS-20s was issuedin open seizure of the strategic initiative and son has not measured up to Caspar mockery of Shultz's piece, and is fur­ decisive use of nuclear weapons, it Weinberger's identification of the act ther evidence that the Ogarkov plan provides a viable means of securing as exemplary of Soviet policy. To at­ for confrontation in Europe is entering Soviet objectives in theevent of war. tack the problem at its roots , we con­ its finalphase . The "moratorium" starts It can also support the avoidance of trast to Nicholson's analysis a recent with a number of missiles deployed war bypr oviding an ability to wage it, piece by George Schultz in Foreign which greatly exceeds the amounts andpossibly win . Affairs: agreed to in the recent INF talks in "Soviet doctrine embodies a phil- In the past four years , "the under- Geneva!

60 National EIR April 23, 1985 Kissinger Watch by M.T. Upharsin

Venice: In the 1970s and early 1980s, B'rith's Anti-Defamation League. they poured speCUlative money into Kissinger sits on the board of Amex, developing-sector economies at usu­ thanks to Safra'sand Bialkin's efforts. rious interest rates, then insisted that Safra and his wife are also leaders Asset stripper, equity these countries implement Interna­ of the World Wildlife Fund Interna­ tional Monetary Fund-dictated de­ tional, which exists for the purpose of grabber, thief struction of their real economies, and ending industrial progress around the In the case of Henry Kissinger, it now are proceeding to buy up real world. a would be gross understatement to say infr structure cheap. of his financial and political dealings Whenever Kissinger or any of his And Lord Roll of Ipsden "conflictof interest. " Even "thievery" friends start mouthing the IMF line, doesn't quite fit. you can be sure Henry, and his asso­ More Kissinger Associates' dirty­ For months, the curious have ciates like Stoga, are about to become doings on the debt question are surfac­ wondered who actually authors Kis­ very rich. ing around the U. S. trip of Lord Eric singer's Los Angeles Times-syndicat­ Roll, manager of Warburg Bank/Lon­ ed pontifications on the subject of in­ don and a director of Kissinger Asso­ Simon, Safra, drugs ternational debt and finance. Sudden­ ciates. On April 9, Roll arrived in ly, in mid-March, the answer in part EIR experts estimate that financial ac­ Washington for a series of public and surfaced, in the person of one Alan tivity related to internationaldrug traff­ private meetings. The hallmark public Stoga. ic has increased by one, if not two, event of the trip was an April 11 Stoga appeared at a Georgetown orders of magnitude in Brazil in the speech, "Whither Europe and the University conference on the Middle past couple of years. World Economy," at Johns Hopkins East as Kissinger Associates' spokes­ Among the most influential bank­ School of Advanced International man on questions of Middle East fi­ ing figures on the Brazilian scene are Studies, before an audience of 100 IMF nance. Then, as the end-of-March good buddies of Dr. K. officers and scores of commercial quarterly debt rollover hit, Stoga ap­ For example, there is William Si­ bankers from around the world. peared on the front pages of the Wall mon, former secretary of the treasury Roll, one of the leading bankers Street Journal, to warn readers that and a multi-millionaire director of for Her Majesty's interests in Asia, the debt crisis had not subsided, but Kissinger Associates. Simon is a fa­ will be effectively kicking off the se­ was about to explode. natical advocate of "free trade" poli­ ries of events leading into the IMF's Who is Alan Stoga? cies of the sort associated with British week-long meetings in the nation's Until his employment at Kissinger East India Company ideologue Adam capital beginning April 14. Associates, he was a vice-president at Smith, of the sort against which the Rumors are that Kissinger will be the First National Bank of Chicago. In American Revolution was fought. In pitching in his views on the IMF, debt, that capacity, in 1983, Stoga arranged recent weeks , his name has surfaced banking, and related questions at a the buy-up of 43% of Brazil's troubled as a close buddy of Brazil's Sr. Gar­ closed-door symposiumin Napa, Cal­ Demasa bank, the first time in a half­ nero, director of the dope-linked ifornia on April 17 (the same day as century that major shares of a Brazil­ Brasilinvest. the IMF's Interim Committee meets ian bank had been sold to foreign in­ Then there is Edmond Safra, in D.C.) sponsored by the Bank of terests. This was commonplace in the whose Safrabank is in Brazil's top ten. America. Bank officials are mum days before Brazilian patriots in the Safra is the international director of about Kissinger's appearance, but the 1930s determined that their resources American Express, of Republic Na­ word along the insider circuit is that were for national development. tional Bank, and of Geneva's Trade Henry is indeed a featured attraction. More to the point is that the De­ Development Bank, all of which are The conference is on "World Bank­ masa case is a variation on Kissinger's interlaced with the big international ing," with bankers attending from over theme that developing-sector coun­ narcotics interests. Several of Safra's 100 countries. tries must hock their resources in lieu banking mergers, for example, have Then, on April 23, Kissinger As­ of debt repayment. First National is been arranged by Kenneth Bialkin, sociates directors are scheduledto meet among those banks that belong to the senior partnerof the Willkie, Farr, and secretly in New York, to map out new "creditors' cartel," whose policy is Gallagher law firm, lawyer formobs­ phases of thievery. Watch this column drawn up in Geneva, London, and ter Robert Vesco, and head of B'nai for further details ....

EIR April 23, 1985 National 61 NationalNews

two man at the FBI, Francis "Bud" Mullen, The Economic Policy Council's mem­ was head of the Drug Enforcement Admin­ bership will include the secretariesof State, istrationat the time that DEA agent Enrique Treasury, Agriculture, Commerce, Labor, Weinberger cuts Camarena was kidnaped and murdered in Management and Budget, Trade Represent­ DOD progress payments Mexico, and that Mullen had been "impli­ ative, and the Council of Economic Advi­ cated in drugdealings" while working as an sors chairman. When President Reagan is Defense Secretary CasparWeinberger, un­ FBIagent in New Orleans. not available to chair its meetings, Treasury der intense media pressure, has cut Depart­ The magazine asks if Camarena's writ­ Secretary James Baker III will preside. ment of Defense progre�s payments to de­ ten reports might not contain "leads which fense contractors, in order to achieve a re­ could be the key to finding his intellectual ported "one-time" cut of $2 billion in the assassin. perhaps a comrade." The infor­ fiscal 1986 budget. These phased payments mation on Mullen's shady background first for work-in-progress will be cut from 90% broke in EIR (April 9, 1985). to 80% for large contractors, and from95% Quehacer Pol£tico's editorial was sec­ to 90% for small contractors. Nitze: ABM treaty onded by the president of the Mexico City The higher rates were set during the Bar Association on April 12. Mullen, he doesn't ban defense 1970s to protect contractors from runaway said, should be called to testify before the A "defense-reliant strategy managed jointly inflationand interest rate charges. Mexican Senate on his office's links to drug by the United States and the Soviets ...in Weinberger's announcement April 11 trafficking. Lawyer RobertoPola Rodriguez which defensive technologywould be phased reflected the "recovery" myth as the justifi­ noted, "We cannot forget that the former in, while offensive nuclear arms would be cation for lowering the progress payments director of the DEA, Francis Mullen, was gradually phased out." That is how arms starting on April 30, 1985. He also an­ implicated in drug traffic, besidesaccepting negotiator Paul Nitze characterized the nounced that the requiredcontractor invest­ bribes from the drug mafia when he was an President's new militarydoctrine ("Mutual­ ment as a proportion of progress-payments FBI agent in New Orleans." ly Assured Survival") in a speech on April will be raised from 5% to 15%, also at the Mexico's La Prensa reported April 11 11 before the convention of the American end of April. that there werethree DEA agents among the Society of NewspaperEditors . The announcement came afterthe White 24 thugs captured with the Mexican mafia's Nitze pointed out that the 1972 U.S.­ House, on the advice of chief of staff Don "Numero Uno," Ernesto Fonseca Carrillo, Soviet ABM Treaty "never outlawed de­ Regan, agreedto a compromise with Senate according to leaks from Mexican police fense in general ....The Russiansrefused Republicanson the FY1986 budget mandat­ circles. to sign anything with that kind of philosoph­ ing deep cuts in Pentagon spending. Ac­ ical underpinning ....Also , the treaty ad­ cording to press reports,the main provisions dresses the possibility of defenses based on of the deal call for the defense budget to be 'other physical principles,' and includes increasedby only 3 %-halfthe 5.9% com­ provisions for negotiating about them. " promise the President agreed to in January. "Other physical principles," of course, As partof the same compromise, the Social President creates two are precisely what are involved in the range Security cost-of-living escalator will belim­ policy councils of laser, microwave, particle. and plasma itedto 2% year,even inflationis higher. per if On April 11, President Reagan announced beams encompassed in the research effort Due to similardeals in the past, the Rea­ the creation of two new cabinet-level coun­ around the President's Strategic Defense gan administration actually spent $26 bil­ cils, the Economic Policy Council and the Initiative. lion less on defense between 1981 and 1984 Domestic Policy Council. according to a than the Carter regime had projected for a dispatch of the White House News Service. second term. The two new councils will replaceexisting cabinet councils ranging from Foodand Ag­ ricultureto the Senior Interagency Group on Weinberger scores Times' International Economic Policy. Mexicans demand probe The Economic Policy Council, the Do­ opposition to progress mestic Policy Council, and the National Se­ The New York Times also thought the air­ of Mullen, FBI curityCouncil will thus serveas the primary plane was "technologically impossible," Perhaps the FBI should be asked what it channels for advising the Presidenton policy. Defense Secretary Caspar Weinberger re­ knowsof the Camarenakilling, the Mexican Vice-President George Bush and Chief mindedhis audience at the American Soci­ weekly Quehacer Pol£tico suggested in ear­ of Staff Donald Regan will serve as ex offi ­ ety of Newspaper Editors convention in ly April. It noted that the former number- cio membersof both councils. Washington.

62 National EIR April 23, 1985 Briefly

• INCREDmLE PROGRESS is the way Lt.-Gen. James Abraham­ son, head of the Strategic Defense Initiative, is characterizing the pr0- gram. He told the American Institute of Aeronautics and Astronautics On In a speech on April II devoted to de­ cial institutions. It would also levy a mini­ April 9: "It has been a year of incre­ bunking "misconceptions" about the Stra­ mum $250,000 fine and a jail sentence of dible technical progress, and a year tegic Defense Initiative , Weinberger fiveyears for a firstoff ense , and a maximum of rather amazing intellectuaIeff ort." emphasized: fine equivalent to twice the amount of the The program is moving "so much • the enormous scope of the compara­ money laundered. more rapidly than even myself, a ble Soviet program; One of D' Amato's bills is similar to technical optimist, believed could • the importance of both the U.S. and McCollum's, but mandates longer prison have happened." Soviets developing strategic defense terms. The other, the Drug Money Seizure systems; Act, would increase fines for financial insti­ • STUDENTS FOR SUICIDE • the "inseparability" of defense of the tutions that violate currencyreporting rules-­ head Lonnie Brown at Emory Uni­ United States and Western Europe . as the Bank of Boston did-to a maximum versity, organizer of referenda for Ridicule of the New York Times' oppo­ equal to the entire amount of money universities to stock cyanide pillS-for sition to the airplane (and the electric light laundered. students' usein nuclearwar, told E1R , bulb and space travel) was a prominent fea­ U.S. Attorney for Massachussets Wil­ "We are approaching the Soviet rep­ ture of 1984 Independent Democratic pres­ liam Weld two months ago fined Bank of resentatives at the [PresidentJimmy 1 idential candidate Lyndon H. LaRouche , Boston only $500,000 for laundering of Carter Center's arms control confer­ Jr. 's Nov. 3, 1984 election-eve television funds known to have exceeded $1.2 billion. ence. . . . The people at the Center broadcast on the SDI. told us they are encouraged by what we are doing, but can't say so public­ ly . " He also admitted that "irate mothers are calling our office all the Administration scores time accusing us of encouraging their Bentsen seeks military's kids to kill themselves." press on peace plan use against drugs The Eastern Establishment press's treat­ • 'WORSE AND WORSE' is the Texas Sen. Lloyd Bentsen has called for ment of President Reagan's new peace pro­ way America's top AnglicanChwch expanded use of the U.S. military in Presi­ posal for Central America has prompted a official characterized "things in the dent Reagan's War on Drugs. In an op-ed sharply worded reaction from administra­ U.S. Maybe the whole structure will appearing in the Apr. IOHouston Post, Ben­ tion spokesmen. have to change," said Paul Moore , tsen called on all Americans to participate The President issued his proposal after Episcopal Bishop of New York, on a in a massive public effort to stop the illegal consultation with the Pope and meetings in local TV show April 7. "I'm preach­ drug trade , and cites his own efforts in the Washington with President Belisario Betan­ ing revolution . . . not violent revo­ Senate to expand the use of the Navy, of cur of Colombia, representing the Conta­ lution, but the kind inthe early 1930s, other departments of the military , and of dora Group (see page 24). when FDR came in and really re­ sophisticated technology like AWACs to as­ The Washington Post and New York structured the society. . . . I'm not sist civilian law enforcement officers in the Times, however, both editorially attacked against socialism, but ifI say I'm for war against drugs. the President's initiative, calling it out of it, everyone will think I'm a "All Americans should play a role-it's touch with reality and sure to be found un­ communist." that important. It will take a massive public acceptable by all parties involved. For ex­ effort to face up to a determined and well­ ample, Anthony Lewis wrote in the April 7 • WALTER MONDALE told fundedillegal drugtrafficking industry . We Times, "Reagan's proposal can bring only NBC-TV's Meet the Press show April can accept nothing short of victory ," Ben­ more hate and violence on Nicaragua-and 7, "I do not think I emphasized the tsen writes. on the United States." positive in theway that I shouldhave. Meanwhile, his colleagues in Washing­ On April II, a State Departmentspokes­ I've never lost young people before . ton have introduced three bills designed to man attacked both newspapers for what he They heard opportunity'' on theo ther crack down on bank laundering of organized called "inaccurate characterizations" of the side .... I didn't match Reagan's crime funds. response elicited by the initiative. One day television genius at communciating One bill was introduced in the House by . earlier, the State Department circulated a the symbols of the presidency. We Bill McCollum (R-Fla.) and two in the Sen­ statement saying: "We have received reac­ must finda candidate who in additon ate by Alfonse D'Amato (R-N.Y.). The tions from all the Contadora participants , to being right, can meet the modem House bill, titled the Money Laundering Act with the exception of Nicaragua, which we challenge of communications. " of 1985, would prohibit money-laundering view as encouraging and certainly more po­ and make it illegal for criminals to use finan- sitive than reported in the WPost [sic] article.

EIR April 23, 1985 National 63 Editorial

The IMF 's biological holocaust

Among thegrowing millions already dying of famine famine-having eaten rather than planted their seeds to and disease throughout most of black Africa, an epi­ stay alive during 1984--the IMPdecreed price increas­ demic of the dreaded disease cholera has now erupted . es for basic foodstuffs in February. This, together with famine and other diseases spreading The process of human death thus unleashed is in 37 African states, is a threat not only to that conti­ blacked out by the supranational institutions like the

nent, but to the world. IMP , the United Nations, and the Red Cross, whose Not only might the cholera epidemic soon spread to knowledge of African epidemics is proven. But then, othercontinen ts. More significantly, it may soon prove after all, as Global 2000 exemplifies, it has been their to be only an early signal of the pandemics of "Black declared intention to reduce the world's population by Death" proportions which failure to reverse the condi­ 2 billion for over a decade. tions now sweeping over Africa will invite upon civi­ Let those who defend the IMF, who defend the lization as a whole. genocide doctrines of Malthusianism enshrined in Plagues do not apply for entry visas, and do not Global 2000, take note of the natural law whose viola­ respect customs regulations and national borders . tion is now working itself out in the African horror: Moreover, as AIDs forewarnsus , the kinds of pandem­ When a civilization no longer respects the individual ics that may be expected to issue from the African human life as sacred, when millions of At'lericans can ''forcing-medium'' of famine and malnutrition must watch entire continents condemned to death by oli­ rapidly tend to outstrip known primitive forms of mi­ garchical financial agencies with the backing of the crobiology (disease) and their means of treatment, pro­ U.S. government, this immorality proves also to be ducing treatment-resistant varieties and mutant strains suicidal insanity: The holocaust we permit to crush of greater virulence. Africa falls back on us, and we seal our own destruc­ This is no natural catastrophe, but the direct con­ tion, be it in the form of pandemics or in the form of a sequence of both the International Monetary Fund's new world war. loan "conditionalities" and the racialist "Global 2000" The solution to the matter is as simple as cholera is doctrine of the Carter administration . As EIR warned to cure. The International Monetary Fund must be as much as 10 years ago, unless the policies of the IMF promptly abolished. An emergency global summit, the and the State Department's Global 2000 arereversed­ "Indira Gandhi Memorial Summit" Helga Zepp-La­ and now, very quickly-as many as 300 million of 500 Rouche has demanded, must promptly introduce a set million Africans will die in a genocide far worse than of monetary arrangements among sovereign states to Hitler's, and civilization as a whole will be confronted generate long-term, low-interest credits for industry, with the inevitable spillover effects of a crime of such agriculture , and great infrastructure and development proportions: the greatest biological and ecological hol­ projects. The immediate realization of such a summit ocaust in history . is the only hope for Africa, for the developing sector, In Africa proper, 7 million of 22 million Sudanese and for the advanced sector. It is the only means by are scheduled to die this year-with the official en­ which PresidentReagan 's Hoover-like subservience to dorsement of the Britishpr ess. The same fate threatens the Eastern Establishment in economic policy can be Mali, Niger, Ethiopia, Somalia, Sudan, and Mauritan­ broken. ia--taking only famine, not pandemics, into account. We appeal to Prime Minister Rajiv Gandhi, to all This year, it shall be lbero-America's turn. In Bo­ heads of state, and above all , to the American President: livia, where 2 of 6 million people are on the verge of Convene the Indira Gandhi Memorial Summit.

64 National EIR April 23, 1985 Rules Who Really Russia Today?

S ince the spring of 1983, when Lyndon LaRouche first laid out his groundbreaking analysis of the "Third Rome" imperialism that forms the Soviet Union's cultural matrix, the author and his associates from the staff of Executive Intelligence Review have developed rich documentation of the thesis. Russia is not a communist state ! Marxism there was adapted to the pre-existing Russian ideology, to "agrarian socialism" and the cult of Mother Russia. EIR 's material is indispensable for the specialist as well as for the patriotic citizen determined to preserve the values of Western Judeo-Christian civilization. Photocopies of highlights of this coverage are now available for $100.

Includes: • Why the Kremlin rejected President Reagan's March 1983 offer to jointly develop antiballistic-missile technology and replace Henry Kissinger's MAD doctrine with Mutually Assured Survival. • LaRouche's analysis of "Soviet 'Diamat' and 'moles' in U.S. security agencies." • The rising influence of the military since the death of Yuri Andropov and the shootdown of Korean Airlines flight 007 . • The Russian Orthodox Church and the evil spirit of Dostoevsky today. • Why Zbigniew Brzezinski's dream of using Islamic fundamentalism to fragment the Russian Empire is a fraud. Moscow 's creation of the "Islamintern."

• Also includes two paperback books by Mr. LaRouche: Will the Soviets Rule in the 1980s? and What Every Conservative Should Know About Communism.

. . . and much more

Special otTer: A companion dossier, 'The Ogarkov Doctrine: Soviet Military Deployments for a Global Show­ down," is also available now for $IOO-you can order both for a total of $150.

Order from : Campaigner Publications, Inc., P.O. Box 17726, Washington, D.C. 20041-0726.